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Lou Dobbs This Week

Bush Reportedly Angry at Immigration Bill Defeat; Republicans Did Not Support the President

Aired July 01, 2007 - 18:00   ET


LOU DOBBS, CNN ANCHOR, LOU DOBBS THIS WEEK: Tonight, President Bush struggles to recover after one of the biggest political defeats of his presidency, senators voting to kill amnesty legislation, voting to stand up for the American people. We'll have complete coverage.
Two top lawmakers on opposite sides of the amnesty debate, Senator Jeff Sessions, Congressman woman Louis Gutierrez join us to give us their assessments of the impact of the bill's failure. And what's next for the president and this Congress. All that, and much more straight ahead here tonight.

ANNOUNCER: This is LOU DOBBS THIS WEEK, news, debate and opinion for Sunday July 1. Here now, Lou Dobbs.

DOBBS: Good evening, everybody.

Americans all across the country tonight praising the U.S. Senate for defeating the president and Senator Ted Kennedy's amnesty legislation, but the federal government still refusing to enforce existing U.S. immigration laws. And as many as a million people a year cross our borders illegally. And between 40 and 60 percent of all legal visitors to this country are overstaying their visas.

Joining me now to discuss the impact of what has been a very tough week for this president, our Washington Correspondent Lisa Sylvester, Senior Political Analyst Bill Schneider, and live from Kennebunkport, Maine, White Hhouse Ccorrespondent Eed Hhenry, who of course is traveling with the president.

Ed, lLet's begin with you, ed. The president mood, his ved, and his reaction, as best as you can perceive it?


Well, I was with the president in Nnewport, Rrhode Iisland, when the news crossed that the U.S. Senate had essentially killed his key domestic initiative. I think the only word to describe it would be shaken. The president looked very upset, very angered, but also disappointed. A and, as I said, shaken. He couldn't believe the news when he was told it by aides.

He came out and, as you know, made a brief statement. But the fact of the matter is while he tried in that statement to revive this, it, he knows full well this bill is all but dead for this year, and next year. It's going to be all but impossible for the president to revive this in a presidential election year, and the bottom line is just showing how little political clout this president has left, Llou.

DOBBS: Lisa Ssylvester, Eed Hhenry saying that it's dead. Do you agree?

LISA SYLVESTER, CNN WASHINGTON CORRESPONDENT: Reporter: iIt's going to be very difficult to bring this back because of the political realities. Now, I think what we might see, and we probably are seeing this on the Hhouse side, is there definitely is a push to get the enforcement side, the border security first.

You had a number of Hhouse representatives and senators who came out afterward and said the president is willing to put a supplemental on this. At least he said before hand, before the vote, let's see do that supplemental now.

DOBBS: And Bbill Sschneider, the political impact, if you will, first, this is a lame duck president by any definition, by any standard. Does this defeat following what has been a defeat for his entire domestic agenda? Does it have any real import in terms of the politics and the president's position?

WILLIAM SCHNEIDER, CNN POLITICAL ANALYST: WeReporter: well, he certainly does look like a lame duck. He's a lame duck. He couldn't get his capital -- his central piece of legislation passed by this Ccongress, and it was the Rrepublicans who voted against it. Democrats actually voted eltded for it in the Ssenate.

But Rrepublicans turned against their own president. When a president loses his base like that, he's in serious trouble. He's got a year and half to go. The most important issue remaining on the agenda isn't the domestic issue, its the toughest issue of all, it's Iiraq.

And with that report coming in September cement about the progress of the troop build up in Iraq, that's nextel cup iraq, that's when the testing time will come. We'll see how many Rrepublicans stick with the president's policy after that.

DOBBS: Ed, the idea that this president is a lame duck still managing and commanding our forces in combat, leading this nation at a time when the democratic leadership of Ccongress is has s now suggesting that Aapril 1st of next year is an appropriate withdrawal date, what is the reaction among the Wwhite Hhouse staff?

HENRY: Well, Reporter: well, what really shook them this week on the foreign policy front, beyond immigration the domestic front, is the fact you had a very senior Rrepublican in Rrichard Lugar, in the Senate, come forward and lieutenant governorer in the senate come forward and say he doesn't want to wait until Sseptember for that progress report, that B bill was talking about. T, that he wants the president to change course now, that time is running out.

So I don't think Aapril, necessarily, is the deadline anymore or even Sseptember. It's very clear that more and more Rrepublicans, in the Ssenate in particular, are uncomfortable with the way the president is leading the war. They want a dramatic course change. It's clear the president is leading the war. They want to does not want that a dramatic course change. It's clear the president does not want that course change. And , and so they're clearly on a collision course. They have to deal with this.

The White House white house doesn't want to, but they have to deal with this sooner than they expected. And let's face it as well, the president, every other day now, is getting subpoenas from Ddemocrats on issues about domestic surveillance, U.S. aAttorney matter, the number of problems for this president are mounting by the day, Llou.

DOBBS: And LLisa Ssylvester, one of the problems it's all but noted by mainstream media is the expiration of so-called fast track, or trade promotion authority that cedes the constitutional authority of Ccongress to the president. It expires, and what is the reaction there in Wwashington?

SYLVESTER: It isReporter: it is, indeed, expiring. A, and many of the critics are essentially -- and Ddemocrats -- are essentially celebrating this. They said that this has been in effect for last five years. We've seen more than a dozen of these trade agreements, and the result has been a loss of jobs.

Republicans, on the other hand, are still pushing, still hoping and praying that they might somehow get a now is smou get a renewal down the road, b. But at this point, it is officially dead.

DOBBS: And Bbill Sschneider, the implications for 2008. The candidates chewing over -- the Ddemocratic presidential candidates -- chewing over Ssupreme Ccourt decisions, Rrepublican candidates seemingly quiescent on a number of fronts. What are the implications of the president's defeat on amnesty?

It's obvious now that Ccongress will not continue to cede its fast -track authority, trade promotion authority to the president. There isn't a front upon which I can see this that this president has much to brag about.

SCHNEIDER: Well, that Yeah. That is true. And you're going to find the Rrepublicans, whoever gets the nomination, whoever's running for the nomination, nobody's carrying the banner of the Bbush administration. The vice president's not running to succeed Ppresident Bbush. And there's no one out there who really says Ii'm going to continue Ppresident Bbush's policies.

Even the Rrepublican candidates, and whoever gets the Rrepublican nomination, they're going to call for change. They're going to say Ii'm the candidate of change. And Ddemocrats are saying already, we must have change. Clearly the voters want change and there really is a new dynamic in Aamerican politics. It's not Ddemocrat versus Rrepublican to most voters. It's the people against the government.

As you described it, this bill, this comprehensive immigration reform bill, was a bipartisan bill. Democrats in the Ssenate voted for it. The president supported it. It was the people who stopped it by rising up and protesting. That the new dynamic. DOBBS: And that is -- if you're an independent populist, like I am, Bbill Sschneider, this is a glorious time.

SCHNEIDER: RReporter: run for president!. Why not?

DOBBS: Let me -- iIt's not that gloriousdplorious, partner. I like my day job.



DOBBS: And the Okay.

And the folks I work with, like you all. Lisa, thank you very much. E ed Hhenry, traveling with the president up in Kkennebunkport, Bbill Sschneider, e minding the nation's capital. Thank you. >

Ccoming up next here, troubling new ow evidence our . Our law enforcement agencies are failing to work together in the war against radical Iislamist terrorists. We'll have that special report.

Also, Ccommunist Cchina refuses to stop exports of its dangerous food and other products into the Uunited Sstates. What in the world is our federal government doing to protect Aamerican consumers? We'll have the story. >

Aand two leading lawmakers, opposite sides of the amnesty battle, Ssenator Jjeff Ssessions, Ccongressman Lwoman louise Ggutierrez join g me as well. Stay with us. We'll be right back.


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Reporter: ieds are now being found buried in sewers, irrigation ditches and under roads, often so deep military detection devices are useless. Defense secretary robert gates is pressing industry to build hundreds of these new armored vehicles as fast as possible and get them shipped to iraq.

Lives are at stake. For every month we delay, scores of young americans are going to die, and so I think that's the biggest incentive of all.

Reporter: but the new vehicles designed to be the best protection yet from an ied attack won't end the threat.

There is no fail-safe. This is ieds, these large ieds can destroy an abrams tank, so there is no surefire. Guarantee that anything will be -- provide absolute protection.

Reporter: the general also says that personnel in the green zone are now being targeted and attack by iranian-made rockets and mortars, some of them with very recent manufacture dates on them. Lou?

Barbara, then the question arises again -- why is the united states government tolerating iranian interference in iraq and permitting them to support the killing of our troops?

Reporter: well, lou, I think most people would ask the question if the U.S. Government, you know, has anything it can really do about it or the U.S. Military. Clearly they're not going to cross the border into iran. They're continuing to go after what they say are the networks of insurgents and people bringing these weapons in, trying to arrest the people when they can, but there is absolutely no intent on the part of the U.S. Military at the direction of the politicians, to cross the border and go into iran, lou.

Well, if the united states government cannot stop the support of those who would kill americans and stop a foreign nation from participating in the murder, the killing of our troops, why in the world would we keep our troops in that area?

Reporter: lou, I think most people understand that president bush has this national strategy to try and bring some measure of security and stability to iraq. They believe, if they can get the iraqi government up and running, working, and really running that country, that they can deal with the iranian situation, but of course all that remains to be seen, lou.

Barbara, thank you very much. Barbara starr reporting from the pentagon. >

five of our troops have been killed in iraq over the past 24 hours, 99 of our troops have been killed so far this month, 3,576 of our troops killed since the war began, and 26,350 troops wounded, 11,831 of them seriously. >

president bush is expected to discuss the war in iraq and other international issues with russian president vladimir putin sunday. The meeting in kennebunkport, maine will focus on the growing tension, moscow using its rising economic power to intimidate its neighbors. Ed henry has our report. Reporter: lou, today some fishing and fun for president bush near his family's compound, but he'll have to shift gears, as you noted, very hard on sunday when the russian president arrives. They have a lot to talk about, president bush hoping that the casual atmosphere in kennebunkport here will help repair a relationship that has been become frayed, in particular over a controversial U.S. Plan to build a missile defense shield in eastern europe, mr. Putin not happy about that being built on his doorstep, though the kremlin spokesman today tried to downplay this talk.

I would say the expectations of cold war is something more about press than it is the expect and the expectations of the media. It's the over-exaggeration and the relations were never tense as described in the media, although, of course, we have to acknowledge the existence of some disagreements.

Reporter: but in point of fact, though, president putin did initially respond to this missile defense program with a threat to aim nuclear weapons at europe if the U.S. Did not abandon those plans. Both men are heading out of office soon, they have an incentive to come together over this plan and end their terms on a high note and try to mend u.s./russian relations. You rember six years ago president bush said he famously looked into putin's eyes and have seen his soul. There's a lot of questions about that remark now.

Thank you very much. A lot of soul-searching perhaps over the weekend. Ed henry from kennebunkport, maine. >

coming up next, british police smash a plot to explode car bombs in london, bombs that could have killed police say hundreds of vehicles. >

and another big setback for the president and the administration's war on the middle class. This time the issue of so- called free trade, we'll have that special report on a congress slowing down fast track. Stay with us. >

congress may finally be taking back its constitutional authorities over the national trade policies. President bush's fast- track power to negotiate those agreements expires tomorrow. Congress had essentially ced its responsibility to the white house. But now they say they're not willing to renew the president's authority. Fast- track authority was first approved back in 1975, giving the president the right to negotiate trade agreements which the president can accept or reject, not make in the changes. >

as lisa sylvester reports, administration officials are pushing hard to have the president's trade authority restored.

Reporter: in the past five years, the bush administration negotiated more than a dozen trade deals, thanks to fast-track trade promotion authority. That allowed the executive authority.

Fast track consolidates all of the power in the white house. They can pick trade partners, start a negotiation, decide the content, and even sign the agreement, all before congress votes. Reporter: but democrats say the days of handing over a blank check for trade are done.

President bush has used those before, and he has found every single one of them.

Reporter: fast-track authority expires this weekend. The critics are all too happy to see it sunset.

Today we bid farewell to fast track and aggressively secure or authority.

Reporter: the trade agreements have been a bonanza for corporate america, but left thousands out of work, according to democrats and unions. Hill republicans and the white house urged a quick renewal of the authority. Cn291820.txt channel: 4 date: 06/29/2007 time started: 18:20 time ended: 18:30 comments: lvideo3 ------------------------------------- thousands out of work, according to democrats and unions. Hill republicans and the white house urged a quick renewal of the authority. They say consumers could see prices rise, and U.S. Companies could lose a competive edge on the global market.

Without tpa, countries won't come to the negotiating table and we risk losing market share around the globe as we did when tpa or its predecessor lapsed in the 1990s.

Reporter: with fast track running out,ed administration signed deals with peru and panama, and hoped to reach agreements with colombia and south korea before the deadline. Now that fast track is ending, democrats say they'll push for a new direction on trade. Legislation is planned to be introduced next month to suspend nafta, and nancy pelosi says they'll work on expanding the benefits of globalization to all americans.

Lisa sylvester from washington, thank you. >

it's time to look at some of your thoughts. We're receiving thousands of e-mails about the defeat of the amnesty bill, and it's fairly happy e-mail, I must say. Joan in virginia says -- that reveals the views and thoughts of so many of you who wrote in, and I mean literally thousands and thousands over the last couple days. >

we'll have more of your thoughts later in the broadcast. Time now to look at our poll. The question tonight -- does the senate's defeat of amnesty encourage you to voice your views to elected officials on future legislation? We would love to hear from you on this, yes or no, cast your vote. We'll have the results coming up later. >

next, london police have discovered and defused two car bombs in the city's entertainment district, bombs that could have killed hundreds of people. We'll have the latest. >

and communist china retaliating against U.S. Recalls of its dangerous products. It's banned U.S. Goods, because they say those goods don't meet chinese standards. We'll have that report and more, coming right up. Stay with us. Use of where you live? Don't believe it! Say hello to high-speed internet by satellite-hughesnet. The number one choice for satellite internet service in the country- and you can get it right now! So dump your slow dial-up and jump into the high-speed action you've been craving. Hughesnet delivers! And it doesn't use a phone line, so missed calls and dialing-in are a thing of the past! All you need is a clear view of the southern sky. Hughesnet is brought to you by hughes, the leading provider of satellite communications worldwide. How cool is that? So what are you waiting for? You're done with waiting! Call or visit and live the high-speeed life in no time. Hughesnet-bringing broadband to everyone. Call now! You're welcome. >

communist china today blocked the import of some U.S. Products. China is saying those american products don't meet chinese safety standards. Their move comes after several new recalls by the united states of dangerous products manufactured in china, products that include seafood, pet food, and toys. Kitty pilgrim has our report.

Reporter: chinese officials today called the fda ban on farm- raised chinese fish unfair, saying all countries should honor trade deals with china. In principle, if you don't find any problems, chinese goods should be allowed to be exported. It blocked also certain U.S. Exports in return say china will take corresponding measures to deal with imported foods which don't meet the safety standards. Then china blocked U.S. Exports of orange pulp, and preserved apricots. Many chinese exporters have long been operating without rules or conscience, mislabeling products, doctors products with dangerous substance toss make them cheaper and exporting substances banned in other countries.

They're using ingredients we don't allow, antimy rob microbial agents.

Reporter: page after page of the fda documents reject chinese products coming into the country for such reasons as contaminants and filth. Mislabeling is epidemic. This month the european parliament moved to ban chinese exports of cat and dog fur on toys and clothing. Europeans officials said china disguises the fur with false labels. The U.S. Ban on fish comes after years of complaints to chinese exporters.

We have known about these problems about antimicrobials for some time, and have been doing something about it. We have been putting individual companies on hold.

Reporter: china is the top violator of U.S. Food safety standards, 60% of the products recalled this month are from china.

Chinese authorities are playing a double game, admitting they have a problem and then denying it all in the same breath, but it is clear the problem is epidemic. Earlier this month chinese officials admitted they shut down 180 food manufacturers for using inedible material for food production. Lou?

Quite remarkable and not a word from the bush administration, of course, on why they are failing to protect the american consumer and why they have put the united states in this ridiculously vulnerable position. Kitty, thank you very much. Kitty pilgrim. >

new reports say tom cruise will film a movie in germany despite being banned because of his religion. He's a scientologyist. The movie is about a plot to kill adolph hitler. Earlier this week the german government says cruise could not film at any military bases because he's a scientologyist. The german government says it's a cult disguised just to make money. >

up next, three of the best political minds, best strategists, they'll be here to discuss what has been a fascinating week in the nation's capital, and something of a glorious week for american citizens. >

also, new evidence of the massive efforts by mexican drug cartels to smuggle drugs into this country. We'll have that special report. >

and rising tension in london after police find two car bombs that could have killed hundreds of londoners. We'll have a live report next. Stay with us. DOBBS: The President and the democratic leadership of the Senate failed in their effort to award amnesty to millions of illegal aliens. They won't have the guest-worker program the president says was so necessary for border security.

And as we've reported here before, this nation has guest-worker programs, at least eight guest-worker programs, in fact. That's right, eight of them. No one at the White House apparently told the president about that. Temporary work visas, in fact, were given to more than 600,000 people last year. No one, however, in this government knows how many of those overstayed their visas, but there are estimates.

For example, Senator Dianne Feinstein, on the Senate floor, acknowledging the federal government hasn't exactly tackled the problem head on.

SEN. DIANNE FEINSTEIN (D) CALIFORNIA: If we don't fix our visa overstay system, which is in this bill, 40 percent of visas overstay. Many of those don't go home.

DOBBS: So, 40 percent, Senator? Well, a GAO report shows, in fact, the number can be almost 60 percent of those holding visas, and overstaying their visas. And by the way, the Bush administration, Senator, the United States Congress all have the power to insist that the law be enforced.

They could fix the problem by enforcing the existing U.S. immigration laws, if they were really serious about it. What is now obvious -- and very obvious -- to the American people who let the Senate know their feelings, they're obviously not committed.

The collapse of the so-called Grand Bargain, of course, was a devastating defeat for the pro-amnesty, open borders advocates around legislators in both the Senate and the House. Democrat Luis Gutierrez, of Illinois, among the bill's most ardent supporters, joined me with his reaction to that bill's defeat.

REP. LUIS GUTIERREZ (D), ILLINOIS: Those of us who desire to secure our borders, to bring about comprehensive immigration reform, we extended every olive branch. I think we were sent here to look for solutions to problems, and to look for them in a fair and humane fashion.

DOBBS: Right.

GUTIERREZ: We certainly reached out to the other side of the aisle. I mean, this was a Republican-crafted proposal where they set the rules and the limitations of the debate, with the support of the president, but they could only get 12 Republicans to step up and vote for it.

DOBBS: Right. Congressman, you were sent there to come up with something fair, something humane. But your own congressional budget office revealed that this legislation would have only curtailed 25 percent of illegal immigration. Your own congressional budget office reveals that a net impact on the federal budget of $30 billion over 10 years. The legislation would have reduced already authorized construction of a fence from 750 to 370 miles.

The idea that this legislation could have moved this far against what are irresistible facts that are inconvenient, at best, if not detrimental to, the common good and the national interest. Do you think as a result of the facts emerging after so much rhetorical obfuscation on the part -- both sides of this debate -- that we can have a situation arise, in which we reach a consensus about what is good for this country rather than an ethnocentric approach to it from some of the special interests, activists and corporate America, in particular?

GUTIERREZ: I think clearly for me, Lou, what was central and critical to this debate was the word "amnesty." Even though I came forward, along with many others, and said we want to fingerprint them, we want to tax them, and if they've done anything wrong, we should deport them, but if they haven't, if their violation is -- we said we're going to fine them steeply. We're going to put them on a probationary path.

So, we did all of those things and people said, no. So you know what, Lou, we have 12 million people continuing to work in this country undocumented today, and we'll have them tomorrow because of our inaction.

DOBBS: Well, we also have a border that is wide open across which an estimated 1 million illegal aliens cross. We have a port through which 95 percent of the cargo comes without interference, or without screening.

Do you -- now, I've got to ask you, because in Spanish today you talked in length in Spanish and said, quote, "For those 10 million permanent residents who feel offended by the rejection of this legislation, who feel betrayed, who feel humiliated, who feel beaten down, the appropriate thing at this moment is to arm yourselves with the right to vote, by naturalizing yourself and becoming citizens.

GUTIERREZ: Absolutely. I feel that way. DOBBS: May I ask you a question? Why should they feel beaten down? Why should they feel humiliated? Why should they feel betrayed?

GUTIERREZ: Because when you speak of one immigrant, you really speak of all of them, Lou, because the tone and the texture of this debate has been such that you stereotype all of us. You put the blame on the Mexican border and the Mexican border and the Mexicans as though they were usurping jobs left and right from American citizens, as though they were tearing at the very fabric of this society.

DOBBS: You have just distorted anything that I've said --

GUTIERREZ: Lou -- Lou --

DOBBS: No, no, I'm going to set this record straight.


DOBBS: No. I'm going to set this record straight, Congressman.

I have said that an illegal immigrant crossing our border from the south would be a damn fool not to cross it for a better life. What I have said is that the United States government is absolutely derelict, its Congress, and (AUDIO GAP) the law, and I have put the blame squarely, squarely, sir, on you, your colleagues in government, and this president for its failure to enforce the law of the United States and to secure the borders.

Almost six years after September 11th. So, don't tell me after your activists and many of the proponents of amnesty and open borders have called me a racist, a xenophobe, an isolationist.

GUTIERREZ: Sorry, Lou.

DOBBS: OK, please. Keep the record straight here.

GUTIERREZ: Lou, the problem here is I haven't said any of those things.

DOBBS: Mm-hmm.

GUITERREZ: Here on this program, or in private, or in public conversation.

DOBBS: Right.

GUTIERREZ: Nor do you have a record of it. So why accuse me of something that I've never uttered, number one. What I have said is this -- immigrant communities should organize itself. The more people they have to vote, the more they are engaged in our democratic process, the more beneficial the process and the --


DOBBS: But that's what I'm asking you. Why in the world would a person who is in this country as a legal permanent resident, why would they not already be on that path? And the issue that one immigrant is the same as any other, sir, is an absolute distortion and it's the root of much of the obfuscation from your side of the aisle.

But there's obfuscation on the other side without question. But to say there's no difference between illegal immigrants and legal, is a disservice to everyone who goes through the legal process to enter this country.

GUTIERREZ: Lou, Lou, we have different points of view, you and I.

DOBBS: Yes, we do.

GUTIERREZ: That's what makes this country so rich and so dynamic, and that's what keeps us strong and vibrant, Lou. And what we have to do in this discourse is have respect for each and every one's point of view.

DOBBS: I have all the respect. Who invites you on this broadcast, as often as I can?

GUTIERREZ: You invite me on this program. I look forward to the energetic --

DOBBS: All right, let me ask you this --

GUTIERREZ: Do you think I come on this program because you're going to congratulate me and say, Lou, what a great job? No, I come because I think it enriches our conversation.

DOBBS: Let me ask this. I have said secure our borders, secure our ports. And then we'll deal with the effort of a rational, effective, humane reform. And I mean real reform, not just a name in our immigration laws, and deal with those 12 million to 20 million illegal aliens. Why will -- why could we not do that?

GUTIERREZ: I think we can --

DOBBS: Because that's what the American people want.

GUTIERREZ: And you know something, it's what I want, Lou.

DOBBS: Then let's do it! Let's get on the road together. We'll go out and persuade everybody to do it.

GUTIERREZ: I'm serious, Lou.

DOBBS: Let's go secure that border.

GUTIERREZ: But I'm for securing -- Lou, when I wrote the Stryback (ph), with my colleagues, it was introduced by McCain and Kennedy in the Senate, it was about enforcement, enforcement, enforcement, and making sure our border was secure.

DOBBS: We've given you more time than any guest this week. I hope you're flattered by the fact. I want you to come back. We'll have further discussion.

GUTIERREZ: I look forward it to Lou.

DOBBS: I appreciate it.

GUTIERREZ: Thank you.


DOBBS: Up next, new evidence that Communist China is exporting dangerous food and other products to this country. And our government paying any attention at all? What are they doing for American consumers? We'll tell you.

And the market for fake identification cards thriving, as illegal aliens continue to pour across our borders. We'll have that special report and more, straight ahead. We'll be right back. Stay with us.


DOBBS: More alarming news on dangerous exports from Communist China. The federal government recently announcing a ban on several species of fish imported from China, as we first reported here, catfish among the types of fish failing to meet U.S. safety standards. Kitty Pilgrim has our report.


KITTY PILGRIM, CNN CORRESPONDENT (voice over): Chinese fish has been contaminated for years. Since 2001, the FDA found banned toxins and drugs in Chinese-imported fish. Finally, the FDA is officially banning five species of fish from China -- catfish, shrimp, basa, dace, and eel.

DAVID ACHESON, FDA: This is a long-term problem that we've been monitoring for some time. We've reached the point where we now feel we need to broaden this import, holding import alert to a country wide with China.

PILGRIM: The FDA says China is the world's largest producer of farmed fish, accounting for 70 percent of world consumption. Because of the problems, the FDA has upped its testing from 1 percent to now 5 percent of Chinese farmed fish imports, saying the importer has to prove it's safe before any shipment can be released for sale.

Some consumer watchdog groups say it's not just fish from China that should be screened.

ANDREA KAVANAUGH, PURE SALMON CAMPAIGN: I'm worried that the FDA is really only testing for a narrow band of chemicals, and really just focusing on China, probably because of the, you know, the problems over the last few months, you know, starting with pet food and melamine. But there are lots of other places that we import seafood from that need some more scrutiny as well.

PILGRIM: Fish is generally not required to be labeled, so the consumer has to rely on the government to do its screening.

MIKE TAYLOR, FORMER FDA OFFICIAL: This is just another example of FDA having to react to problems, to detect and correct problems, rather than having a system in place to prevent problems. And we really need to transform the way we oversee imports to be preventive, and not just rely on FDA inspectors catching problems and reacting to them.

PILGRIM: Until then, the consumer is left at risk.


PILGRIM: The FDA says there are no immediate health risks from the catfish, the Chinese catfish. But prolonged consumption could lead to cancer -- Lou.

DOBBS: What in the world does that mean?

PILGRIM: That means you better not eat the stuff for a long period of time. However, they've taken six years to actually shut this down, so --

DOBBS: Unbelievable. As annoying as the Chinese are, as dangerous as many of their products are, as much as they take, what is it -- two-thirds of the recalls are Chinese products this year?

PILGRIM: Exactly right.

DOBBS: I mean, we're to blame. Our government cannot protect the American consumer. It's just disgusting. Kitty, thank you very much. Kitty Pilgrim.

Coming up here next, the Supreme Court making their ruling that could influence the battle over one of our most important constitutional principles, separation of church and state. Also, new evidence our law enforcement agencies still can't work together after almost six years, since September 11.

New concerns about the explosion of identity theft and forgery as our illegal alien and border security crisis escalates. Stay with us.


MELISSA LONG, CNN NEWS ANCHOR: I'm Melissa Long. Time now for a quick check of what's happening "Now in the News".

Powerful talks as the president's family stays in Kennebunkport, Maine today. President Bush is hosting his Kremlin counterpart, Vladimir Putin. Some are calling the high-level talks the "lobster summit". But both leaders have some serious business on their minds, chief among them, thawing chilly U.S.-Russia relations.

New details are surfacing about the Saturday's fiery car crash at the Glasgow Airport. CNN has learned that two of the five suspects are medical doctors practicing in Great Britain. Police say the Glasgow crash is connected to two failed car bombings in London on Friday. Democratic presidential hopeful Barack Obama has a burgeoning financial war chest. The Illinois senator says he raised $32.5 million in campaign contributions for the second quarter of '08. That is a record amount for any presidential candidate in the Democratic Party's history. Senator Clinton's campaign reports she garnered $37 million in quarterly contributions. John Edwards took in $9 million.

Roads and highways in southeastern Kansas, closed down. You can see why. Days of heavy rains have washed out entire neighborhoods. Creeks and rivers are well above flood stage. Authorities are ordering residents to get out. A total of 12 counties have been declared disaster areas.

Flames are the enemy in northeastern Utah. Fast-moving wildfire has killed three people and charred about 46 square miles. The fire is so dangerous a federal firefighting team is now directing the effort and helping to battle the flames. Four towns have been evacuated. Not yet known what started the fire.


ELTON JOHN, SINGING: It's a little bit funny, this feeling inside --


LONG: Sir Elton John at the big bash for Britain's favorite princess. London's Wembley Stadium was the venue today for that memorial concert, for the late Princess Diana. Her sons Princes William and Harry hosted this star-studded extravaganza. Prince William said the event was intended as a celebration of his mother's life.

The concert would have been Princess Diana's 46th birthday. In addition to Elton John, Duran Duran, Tom Jones and a host of musical guests entertained the 70,000 fans. Millions watched on television. All money raised by ticket sales will go to Diana's favorite charities.

"Ratatouille" is the box office leader this week. Taking in an estimated $47.2 million. Although it's the lowest opening for a Pixar movie since "Toy Story II," the movie has glowing reviews and is expected to stay among the money leaders all summer.

Number two, "Live Free or Die Hard." The Bruce Willis action flick took in just over $33 million over the weekend. And in limited release, Michael Moore's "Sicko" did well at the box office again this week. The documentary took in almost $4 million, to nab the ninth spot.

We have more news for you at the top of the hour. Now, back to LOU DOBBS THIS WEEK.

DOBBS: Criminal gangs in Mexico and the United States aren't allowing the defeat of amnesty to stand in their way of doing business. While they were expecting a boom, providing fake documents to illegal aliens should amnesty pass, they're still making hundreds of millions of dollars, as things stand in the status quo.

Bill Tucker has the story.


BILL TUCKER, CNN CORRESPONDENT (voice-over): The use of phony documents by illegal aliens is no secret.

SEN. LINDSEY GRAHAM, R-SOUTH CAROLINA: I can get you a Social Security card to my good friend from South Carolina, Jim DeMint. We can go to the (UNINTELLIGIBLE) in Anderson and I'd get both of us a Social Security card by midnight - whatever name you want, whatever number you want.

TUCKER: Even the Department of Homeland Security understands the problem.

MICHAEL CHERTOFF, SECRETARY OF HOMELAND SECURITY: Now, what I have to the right are a number of these fraudulent documents. And let me give you an example of a couple of things that look good and are used in order to try to get - have been used - in order to try to get by our borders.

TUCKER: Except that no papers, no problem. They can be bought here. This spring, ICE carried out a series of raids in Chicago as part of its investigation into a massive document fraud ring. Caught in those raids and awaiting possible indictment is this woman's uncle. The family's business is providing fraudulent documents.

SUAD LEIJA, GOVERNMENT WITNESS: There would be driver's license, the green card, the resident alien state ID from 20 cities, utility bills, driver's license, passport - American and Mexican passport. Those are the major ones.

TUCKER: How good are they?

LEIJA: The document that they sell is as good as what you've got in your pocket. You can't see the difference.

TUCKER: Any amnesty would be a major business opportunity. An affidavit related to the Chicago investigation with sworn testimony and transcripts of wiretaps show a cartel leader speaking of amnesty.

"Tell Colorina to be on the lookout, because if there's an amnesty, he can fix his papers" - fix them so that it would appear that the illegal alien was in the country prior to any day Congress would set to get amnesty, and then be given official papers from the U.S. government.


TUCKER (on camera): Not that the family needs amnesty to keep the business going. It's a $300 million business for the Castorena/Leija-Sanchez crime family, Lou, now with operations in 33 states and 51 cities.

DOBBS: Unbelievable. Can you imagine the money they would have made, had amnesty gone through?

I mean, it's mind-boggling.

TUCKER: When you listen - or when you read the wiretaps and the affidavits that were filed, they clearly were anticipating a huge income.

DOBBS: And not at all daunted by all of those tamper-proof identification cards.

TUCKER: Not in the least.

DOBBS: I mean ...

TUCKER: Not in the least.

DOBBS: ... the nonsense that was being pedaled in Washington over this period of time, even by Washington standards. Really - really disgusting and amazing.

Thank you, sir. Bill Tucker.

The defeat of that grand bargain on amnesty, a major blow for the president, of course, pro-amnesty senators, the amnesty and open borders lobby.

And one of the most vocal opponents of the legislation, leader of the opposition - and an articulate one, at that - Senator Jeff Sessions.


SEN. JEFF SESSIONS, R-ALABAMA: It was a little late coming, wasn't it? I mean, just going into that vote, I was not sure whether the other side would even - they might get 60 votes and be able to move forward with the legislation.

But when it began to collapse, it just collapsed. And I think a big, big part of that was persons like yourself who read this bill, who night after night explained some of the loopholes and deficiencies. And I think that all added up to a collapse of support.

DOBBS: Well, we have sure been trying over the years to report the facts. There have been all sorts of crosscurrents, as you know. And it's pretty easy to step into them, if you insist upon asserting the facts - as you did, senator.

You hit three facts, put three facts - you put a number more, a far greater number than that - before your colleagues.

But impressively, before your colleagues in the United States Senate, irresistibly, from the Congressional Budget Office, establishing that this legislation would constrain only 25 percent, at most, of illegal immigration.

And I know that you, in other extrapolation, took that down to just about half of that, that it would double - actually double - legal immigration over the course of the next 10 years, and that the cost would be $30 billion over 10 years, just in terms of impact on the federal budget.

How in the world against that could any senator reasonably say that they could support such legislation, in your judgment?

SESSIONS: Those were the fundamental facts, I think, that I felt we needed to get to the senators. They were not hearing that from the people supporting the bill. And I drove that home repeatedly, probably ad nauseum to some of them.

But the point I felt was that, if you were going to vote for a bill that your constituents strongly opposed, you had to really believe it was the right thing to do, and you could defend it.

I wanted to be sure that our senators knew that they couldn't defend this bill in the face of the objections they got. And I think that, in a way, maybe came together - the lack of confidence in the fact that this bill would work. It would not work, in my view.

And, too, the American people understood it and opposed it.

DOBBS: Well, senator, I want to compliment you, congratulate you.

SESSIONS: Thank you.

DOBBS: You were steadfast and, as I said, eloquent throughout and did a great service, not just to Alabamans, but to all of the citizens of this country.

Thank you, sir.

SESSIONS: Thank you.


DOBBS: Disturbing new information tonight about federal law enforcement agencies and their fight against radical Islamist terrorists, a new report finding those agencies are still failing to work together, and anti-terror investigations jeopardized.

Jeanne Meserve has our report.


JEANNE MESERVE, CNN CORRESPONDENT, WASHINGTON (voice-over): Bombings in Indonesia and in Pakistan - grim evidence that terror is a global issue.

But a new study says U.S. law enforcement agencies working overseas sometimes are at cross-purposes, actually hurting the war on terror.

In one unidentified country, a lack of communication between the FBI and Immigration and Customs Enforcement, compromised several joint operations intended to identify and disrupt potential terrorist activities.

REP. CHRISTOPHER SHAYS, R-CONNECTICUT: It is wasteful, and it is inefficient, and it could cost the lives of many Americans, if we aren't maximizing our dollars and maximizing our personnel.

MESERVE: Investigators from the Government Accountability Office visited four countries identified by a congressional source as Mexico, Pakistan, Indonesia and Thailand.

They found so much confusion among U.S. law enforcement agencies about their roles and responsibilities, that host governments didn't know where to turn for help.

JESS FORD, GOVERNMENT ACCOUNTABILITY OFFICE: We were somewhat surprised that there wasn't a clear set of direction that was coming from Washington to the field.

MESERVE: A former FBI agent, who conducted terrorism investigations out of the American embassy in London, says U.S. agencies overseas must be on the same page.

LANCE EMORY, FORMER FBI AGENT: So that you can coordinate your efforts, you don't get in each other's way, if you will.

MESERVE: But investigators found the embassies' methods for sharing information had not been updated since 9/11 in three of the countries visited. And in one with "an extremely high terrorist threat," U.S. law enforcement had never been asked to find terrorists on the most wanted list.

MESERVE (on camera): The National Counterterrorism Center says it threw up a strategy to promote communication and collaboration among law enforcement agencies overseas a year ago, and is now assessing its effectiveness.

Critics ask why it has taken so long to do something so basic.

Jeanne Meserve, CNN, Washington.


DOBBS: Just ahead, I'll be joined by three of the country's best political analysts - three of my very favorites.

And the Supreme Court limits the use of race as criteria in school diversity programs. What are the implications for our nation's public schools, our communities, our citizens?

That story and more when we continue. Stay with us.


DOBBS: The Supreme Court ending its current term this week with a number of narrow decisions on volatile issues. The Court, in a 5- to-4 decision, supported the Bush administration's faith-based social initiatives. That ruling barring taxpayers from suing the federal government to block religious organizations from receiving federal funds.

In a decision limiting student speech, the Court upheld the suspension of a California high school student. The student's "Bong Hits 4 Jesus" banner was unfurled at a school-sponsored event. The justices, again ruling 5-to-4, agreed with those school officials, saying the banner promoted illegal drug use.

And the Court, by the same 5-to-4 margin, struck down school integration plans in cities where race is used as a key factor in deciding which students attend schools. We'll have more on that story from Brian Todd.


BRIAN TODD, CNN CORRESPONDENT, WASHINGTON (voice-over): For years, students like Howard Brim have benefited from Louisville, Kentucky's, controversial school choice program.

HOWARD BRIM, BALLARD HIGH SCHOOL STUDENT: Ballard High School has a much higher educational standard than my home school.

TODD: But the Supreme Court strikes down the plan that helped Howard get into Ballard High, ruling that Louisville's method, and one in Seattle, are unconstitutional, because when popular public schools start to fill up, they use race as a key factor in deciding who gets in and who doesn't.

Chief Justice John Roberts, for the 5-to-4 majority, "The way to stop discrimination on the basis of race is to stop discriminating on the basis of race."

Parents of different races joined in lawsuits to stop these plans, and now believe the courts made the playing field a little more even.

DEBORAH STALLWORTH, PLAINTIFF: I agree with integration, but not at the cost of my child's education.

TODD: Those who'd favored race-based admissions see ominous clouds building.

Justice Stephen Breyer, his voice halting with emotion, says in dissent, "This is a decision that the Court and the nation will come to regret."

Others believe this rolls back gains made by the Court's historic Brown v. Board of Education ruling in 1954, ending school segregation.

THEODORE SHAW, NAACP LEGAL DEFENSE FUND: If the result is that schools re-segregate even more quickly and more profoundly, then what we are facing is not only racially separate, but financially unequal schools. TODD: Analysts say this is part of the Court's ongoing struggle with race in schools, with the balance now tipped toward the conservative majority.

EDWARD LAZARUS, AUTHOR, "CLOSED CHAMBERS": Over time, they've tightened and tightened and tightened the rules, and made it more and more difficult for schools to use affirmative action. And I think today's decision walks right up to the water's edge of saying never.

TODD (on camera): So, what will public school choice programs do now to make close calls on admissions? Experts say they'll likely use neighborhood geography, economic situations, other factors. But if they're going to use race, they'd better be very, very careful.

Brian Todd, CNN, Washington.


DOBBS: And in a highly unusual move, the Supreme Court also reversed course and decided it would consider whether Guantanamo Bay detainees can use civilian courts to challenge their indefinite confinement.

In April, the Court had declined to hear an identical case. The justices taking that action without comment, so there's no indication as to what changed their minds. The case is expected to be heard this fall.

Up next, the amnesty legislation goes down in defeat. Approval ratings for the president and the Congress are hitting rock bottom - well, almost rock bottom. And the American public says, we've had a bellyful of Washington.

I'll be joined by three of the country's best political analysts here next. We'll be right back.


DOBBS: Joining me now, three of the best political minds in the country. Here in New York, Democratic strategist, Hank Sheinkopf; "New York Daily News" columnist, Errol Louis; in Washington, Diana West, "Washington Times" columnist.

Well, let me start with you, Diana. The president, he lost a big round on the amnesty legislation. What's your reaction?


The man lost big. And I know there's a lot of talk about his lame duck presidency now.

I think another interesting question is, does it have to be a lame duck presidency? And I'm not holding my breath, but I think there are two things he could do, one of which would be to build that security fence.

Senator Sessions said that would just be a lovely legacy for us, the George W. Bush fence. And ...

DOBBS: Well, Errol and Hank and I are all simultaneously, along with everyone at home, holding our breath.

WEST: Well, I know. I know. I'm not saying this is going to happen, but this would be a good thing.

And then the second thing would be to admit ahead of that September deadline - this report we're all supposed to be waiting for - that American national security interests do not lie in making the Iraqi parliament sing "Kumbaya," that we have grave problems and threats in Iran, in Syria, in the whole world jihadist movement, that he has seemed to have forgotten.

And then worse, he has actually - there's a lot of talk in Washington right now about the White House actually recognizing, reaching out to ...

DOBBS: You took us a long way from how did you react to that immigration bill defeat.

WEST: Well, it's ...

DOBBS: Let me turn ...


DOBBS: Let me - Diana, before you canvas the entire scope of geopolitics, to Errol, to just ask, this defeat, for this legislation - is it a defeat for the president, the Democratic leadership, ethnocentric interest groups, corporate America's U.S. Chamber of Commerce and the Business Roundtable?

Or is this really two things that I would posit to you; one, a victory for American citizens, and two, a victory for empiricism, facts, finally weighing into the judgment of those elected to represent their constituents?

ERROL LOUIS, COLUMNIST, "NEW YORK DAILY NEWS": I think more the former than the latter. I think it's a victory for the fact that, in a country of 300 million, public opinion can, in fact, make itself felt.

In this case, the deciding factor in many ways was the fact that you've got 23 Republicans running for re-election next year. Eighteen of them voted against this thing, because they know that they have to go before their voters, and they sensed that it was not going to go their way. It wasn't going to well for them when they went back into the country.

But at the same time I'd have to say, this, in some ways, is kind of a defeat for those who wanted to see this country move on this issue, because you've got really kind of a de facto amnesty that's going to go on. The 12 million ...

DOBBS: No, but I mean, but the problem with that ... LOUIS: The 12 million are still here.

DOBBS: There are two pieces of language, Errol, that started being bandied around in the last desperate week of this campaign to pass this thing.

One was McCain and Kennedy and the boys all talking about silent amnesty suddenly. And then, hearing Michael Chertoff, Dianne Feinstein, the senator suggesting - we started hearing this talk about unenforceable laws.

These are the people leading our legislature, talking like irresponsible, vapid brats instead of responsible public servants.

LOUIS: Well, but here we go back to empiricism, right? I mean, you can do the math. For 12 million citizens, assuming many of them are ...

DOBBS: Citizens or illegal aliens?

LOUIS: Or, I should say, people who are going to have babies, you're going to get, what, a quarter of a million people a year, who are going to be citizens, because they're born here - you know, the anchor babies I've heard you talk about.

So, now you've got a much more complicated, somewhat bigger problem, that still hasn't gotten resolved.

I mean, I think ...

DOBBS: Wait a minute. Wait. I said, if we're going to do empiricism, Hank, come jump in here.


DOBBS: I mean, empiricism is really simple. And we saw some great strides toward it.

One, the Congressional Budget Office said this monstrous piece of nonsense called comprehensive immigration reform legislation would only curtail 25 percent of illegal immigration into this country.

And Senator Jeff Sessions created an estimate of half that, when you look - because that was stopping it at the border. Then you have to consider domestic enforcement, overstays of visas, and so forth.

And, you know, I mean, it goes on. The nonsense is palpable.

SHEINKOPF: But it is a good day for Dobbs, and it is a good day for America. And now I'll tell you why.

DOBBS: All right.

SHEINKOPF: Forget the nature of the legislation. Public opinion won, which means that - it means that public officials took the time to listen to what their constituents wanted done. And that ... WEST: They couldn't do anything else.

SHEINKOPF: ... is a good thing for democracy.

Yes, they could have done what they - anything they wanted. They chose to do what is rational.

DOBBS: I agree with you. I mean, I am - I said, and not only half jokingly to our correspondent, Andrea Koppel, that when the Senate switchboard broke down, that one of the first priorities I would have if I were them is, one, to get a much bigger switchboard, because I believe this is going to set a pattern for the activity, the energy of the American people, because they've seen what happens here.

And so, the Senate, the Congress better get a bigger switchboard.

SHEINKOPF: But there's another piece of news here that isn't so good, which is the public wants something to happen.

If you look at the numbers on Congress, people in this country voted for change last fall. They got the change. The change thus far hasn't done much.

And normative behavior is, people say, well, they don't like the Congress, but they like their individual congressman. If the numbers start flipping in particular districts, that story will change, too.

Is it likely? Not necessarily. But in the present state of politics in this country, anything can change.

DOBBS: Coming up next, more with our panel of political experts. Stay with us.


DOBBS: Joining us again, Hank Sheinkopf, Errol Louis and Diana West.

We're talking about mantras. The other mantra that started emanating from the White House, which is a source of considerable bad mantras, and from the Senate Democratic leadership was "a bad bill is better than no bill."

I mean, we've reached that kind of Orwellian inflection point. I don't know about you, Diana, I'm scared to death!

WEST: Well, exactly.

But I think what this has done, it's whet people's whistle for some action. I don't think - you know, despite all of your efforts, I don't think until this came to a head, enough Americans were paying attention to this extremely important issue.

We've gone through presidential cycle after cycle when immigration was barely discussed - except maybe here. And that is a very bad thing. And I think when Errol talks about, you know, we have de facto amnesty, I don't think so. I think that there will be changes, and changes demanded, rolling off the energy of this bill, which is why it is a very positive thing.

SHEINKOPF: It's a positive thing, because people have computers. Even people with less money than we thought have computers, and they've got the blogs. And this is going to light up for a while.

And for people who want the right to fail, this becomes an issue. And for people who want the left to fail, this also becomes an issue.

And at some point there'll be a meeting. And that may not be good for either party, because this kind of issue is not going away.

DOBBS: Oh, I'm going to be more positive than that. I truly believe this - and I say believe it, because I don't know it.

I really believe - I sense, when that switchboard went down in the Senate, that, you know, I think those senators were a little shocked that the American citizens suddenly were saying, you know, this doesn't make sense. You have not been enforcing the laws for 21 years.

And you're talking through both sides of your mouth, and various other places.

And it's time to start paying attention to facts, and paying attention to the men and women who pay taxes in this country, work their butts off every day supporting their families - American citizens.

LOUIS: But you've got to worry a little bit, Lou. I think that this will be laid alongside Social Security reform, which hasn't happened in the 25 years I've been watching it, alongside health care reform, which has been on the table since at least the early 1990s.

DOBBS: Well, you missed the - you missed the Greenspan Commission in 1983, which was 24 years ago. But the fact is that I've seen real reform happen, and they didn't call it reform. We called it reform after it occurred, because it was a positive change to Social Security.

When people talk about reform, you know, before action is taken, it's usually marketing. That's the same case here.

But why would I be concerned about it being aside Social Security?

LOUIS: Well, that it may take not just a new president, but a new generation before these issues get dealt with in a serious kind of a way.

DOBBS: Well, which generation is it going to be? That's what's worrying me. You know, the baby boomers, my generation have a great deal to answer for. And whether they go to heaven or to hell, they've got a lot to answer for, because this has been a horrible generation of leadership politically.

Do you not agree?

SHEINKOPF: I agree entirely. And you know I'm going to Normandy this week.

DOBBS: Good for you.

SHEINKOPF: I'm going to go to Normandy, and I'm going to ask those boys for forgiveness, because they gave up everything for what we presently have. And I hope that they - you know, wherever their souls are resting - that they feel some sense that maybe things went a bit right.

DOBBS: Well, I think this week we can attest to the possibility. We'll see. But, as is always the case in liberty and freedom, vigilance is our duty, and ever more so now.

Diana West, you get the last word.

WEST: Well, I would say that the - a lot of this will really become clear with what the presidential candidates do. I mean, a lot of this will be carried forward - or not - according to how they carry the ball.

DOBBS: Indeed. Diana West, thank you very much.

WEST: Thank you.

DOBBS: Errol Louis, thank you very much for being here. Hank Sheinkopf, thank you, and have a great trip.

SHEINKOPF: Thank you.

DOBBS: I salute you.

And we thank you for joining us. Please join us here tomorrow. For all of us, thanks for watching. Have a great week. Good night from New York.