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Bush Shows Support for DeLay; Syrians Pull out of Lebanon; Analysts Weigh in on Bush Meeting with Saudi Prince

Aired April 26, 2005 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CO-HOST: New York City officials say that the design for the Freedom Tower is being modified to improve safety after security experts raised concerns. The changes are expected to delay the planned 2009 opening by several months.
Higher mortgage rates are not slowing the housing market, at least not yet. Sales of new homes soared 12.2 percent last month. That's a record high. Despite higher sales, the median price of a new home actually dropped more than nine percent to $212,000.

First this hour, the most talked about plane ride in Washington. Within the half hour, President Bush is to climb aboard Air Force One to return to the nation's capital, and he's invited House Majority Leader Tom DeLay to fly back with him.

Live pictures now. Now, there may be nothing to it, but the invitation comes when DeLay's repeated ethical lapses have begun to stir worry within the Republican Party.

CNN's Suzanne Malveaux has the story now, live from Galveston, Texas -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Kyra, of course, this is a man who's been consumed by ethics charges. But today, Tom DeLay was all smiles. He attended this event on Social Security. He represents a neighboring district of Galveston, Texas.

And of course, it was interesting even before this event began there was a group that stood up spontaneously, said, "We love you, Tom," started shouting. The audience started applauding. He stood up. He acknowledged them. Again, he was very appreciative of the support here.

White House officials say that he was not invited on this trip to resuscitate his image or his reputation, but it is clear that that is, of course, the desired impact here.

It is also clear, of course, that in the beginning of President Bush's remarks, he valued Tom DeLay. This is a man who was nicknamed the hammer. He is also someone who is critical to pushing forth President Bush's agenda.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I appreciate the leadership of Congressman Tom DeLay in working on important issues that matter to the country.

(END VIDEO CLIP)

MALVEAUX: Now Kyra, as you mentioned, Tom DeLay is going to be traveling back on Air Force One with the president back to Washington D.C. Very interesting enough in this day, in this event, because you did not see the two men standing side by side together. He was about five rows back. There are no pictures of the two men together.

But it is not hard to imagine that they'll be having a heart-to- heart conversation aboard Air Force One.

Now, one of the reasons, of course, that Tom DeLay is so important is pushing forward the plan, the Social Security reform plan that the president has been trying to sell Americans on, those private investment accounts.

So far, it's been a very tough sell. As you know, he's winding down his 60 days 60 stop tour, campaign style, to sell his program. That officially ends on Sunday. But a White House spokesperson says, "Well, look, we're finished with phase one. We addressed the problem. Now we're going to go to phase two to talk about the solutions."

Some critics say the reason why he's going from state to state, county to county, is because obviously, there are a lot of Americans who are not buying this plan -- Kyra.

PHILLIPS: Suzanne Malveaux, thank you so much.

Senators are still deadlocked over seven of President Bush's judicial nominees. The leaders of both parties, though, say they're still talking in hopes of ending that standoff.

Earlier, there was word of a compromised proposal that called for the GOP to end its threat to eliminate judicial filibusters. In exchange, Democrats would help confirm at least two of the blocked nominees. Majority Leader Bill Frist rejected it, saying he's not interested in any deal that doesn't ensure the confirmation of all the nominees.

Karl Rove, deputy White House chief of staff agrees. "USA Today" quotes him as saying every judicial nominee deserves an up or down vote.

The investigation presses on into the deaths of two Georgia toddlers. Three-year-old Jonah Payne and his 2-year-old sister, Nicole, were found dead yesterday, two days after they vanished from their home in Warrenton, Georgia. The coroner, who completed their autopsy today, had this to say about any suspicion of foul play.

(BEGIN VIDEO CLIP)

PAUL LOWE, WARREN COUNTY, GEORGIA, CORONER: No visible signs of trauma. And I stress to you, there is no indication that there is any foul play involved in this. But there again, the investigation is ongoing, and we'll be talking with the sheriff and GBI later. And we'll be putting the pieces of the puzzle together.

(END VIDEO CLIP)

PHILLIPS: The toddlers were pulled from an algae covered sanitation pond near their home. The children's mother says that the 2-year-old knew how to unlock the front door and briefly left the home with her brother early Saturday.

Other news across America now. Police in Florida are searching for another missing girl. This time, it's 12-year-old Margarita Aguilar-Lopez. She was last seen last night in Brandenton, which is south of Tampa. Police say that she was left in the care of the man seen here, Antonio Paulino-Perez.

The woman at the center of the Wendy's chili scare says she's eager to return to California to face charges. Anna Ayala appeared at an extradition hearing in Las Vegas today. She's facing grand larceny charges over her claim that she found a finger in her Wendy's chili. Her attorney calls the charges ridiculous.

More testimony in the Michael Jackson trial. A travel agent told jurors today she was asked by Jackson's associates to send the family of Jackson's accuser to Brazil on a one way flight. Prosecutors contend it was part of a plan to keep the family in Brazil after the airing of the Jackson documentary.

Meanwhile, Jackson's defense team is minus one attorney. Brian Oxman, seen here on the left, is no longer representing the pop star. No reason given, but yesterday Oxman was seen having an animated conversation with lead defense attorney Thomas Mesereau.

Well, a short time ago, Defense Secretary Donald Rumsfeld disputed a report by CNN that the Pentagon has cleared American troops of fault for the death of an Italian intelligence agent.

Italian agent Nicola Calipari was shot and killed at a checkpoint in March as he accompanied an Italian journalist who had just freed as a hostage. Conflicting accounts of the shooting have become the subject of tension between the U.S. and Italy.

Yesterday, a senior Pentagon official told CNN the official probe is over and it clears the Americans. Rumsfeld says that's not so. The probe is ongoing.

Also in Iraq, the American investigation into Saddam Hussein's weapons is finally in the books. Consistent with the interim finding, the team now reports that when U.S. forces invaded Iraq, seeking WMD, there were no such weapons to be found.

The probe also concluded it's highly unlikely that Iraq hid weapons in neighboring Syria, as claimed by Vice President Dick Cheney.

A recent Gallup poll found half of all Americans now believe the Bush administration deliberately misled them on Iraq's capabilities. Two years ago only a third of those polled suspected deliberate deception.

Well, the United Nations is trying to verifying that Syria has completely withdrawn its troops from Lebanon. Syria has reported that its 29-year military presence in Lebanon is over.

CNN senior international correspondent Brent Sadler witnessed a formal farewell ceremony today in Lebanon's Bekaa Valley. He reports now from Beirut.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): Two armies on parade for an historic day: Lebanese soldiers and the last group of departing Syrian soldiers, marking this ceremonial end to 29 years of Syrian entrenchment in Lebanese life.

The top brass honored each other with medals, including praise for Syria's outgoing chief of military intelligence. Anti-Syrian Lebanese say he was the much feared boss of Syrian management over Lebanese affairs.

For weeks the Syrians had been uprooting their troops and tanks, forced to withdraw under intense international and Lebanese pressure. It followed the February assassination of former Lebanese Prime Minister Rafik Hariri in a massive bomb blast, turning a popular Lebanese tide against Syria's long time presence here. Reemerging briefly in Beirut when a group of relatives of missing Lebanese scuffled with security forces outside a still pro-Syrian parliament.

(on camera) This salute to Syria seems to end one aspect of an international crisis, but it may lead to another, focusing on Lebanon's Hezbollah, staunch allies of Syria.

(voice-over) The militant group, labeled terrorist by the U.S. and Israel, still has weapons. It remains at the forefront of international pressure to disarm.

At the border, some Lebanese danced for joy as the Syrians officially completed their pullout.

UNIDENTIFIED MALE: The day of freedom is the day of sovereignty, is the day of happiness, simply.

SADLER: A chance, it's hoped, for Lebanon to stand on its own feet and for politicians to eventually manage their own affairs if the Syrians are well and truly gone.

Brent Sadler, CNN, Beirut.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, Crown Prince Abdullah walked hand-in- hand yesterday, but will Saudis lend a hand on oil prices here in the U.S. Well, it depends on who you ask. Straight ahead, Craig Unger, author of "House of Bush, House of Saud," joins me, as does former ambassador to Saudi Arabia, Robert Jordan. And later, big ticket back yard booty. Yes, I did say booty. There are plenty of definitions. Look it up in the dictionary. You might not think unearthing some old tin cans is anything to sing about. But it's what was inside these cans you just are going to find hard to believe.

(COMMERCIAL BREAK)

PHILLIPS: Memorable pictures from Crawford, Texas, yesterday as President Bush strolled hand-in-hand with Saudi Crown Prince Abdullah, but will this photo op of friendship translate into lower prices at the pump?

Officials say the meeting ended with no promises on short-term output but that Saudi Arabia would gradually increase output over the next decade.

Craig Unger, the investigative reporter and author of "The House of Bush, House of Saud," joins us now from New York with his perspective on that meeting.

Good to see you, Craig.

CRAIG UNGER, AUTHOR, "HOUSE OF BUSH, HOUSE OF SAUD": Good to be here.

PHILLIPS: So what are your thoughts, looking at those pictures, talking about that meeting? Was it really all about oil prices?

UNGER: Well, I think it was. I think the Saudis may be able to increase production a bit. But in the long run, I doubt that that will have much impact on oil prices because of the increasing global demands from countries like China, which is now making over five million automobiles a year.

There's still enormous instability in the Middle East, and the war on terror, in some measure, is a war -- is an oil war. That is, there have been over 250 attacks by insurgents on oil facilitates in Iraq and, to a lesser extent, in Saudi Arabia.

So I'm not sure how much the Saudis can really help out. In addition, there are other new questions being raised by other oil analysts about exactly how much the Saudis reserves have. So a lot of analysts predict oil prices to go up to over $100 a barrel.

PHILLIPS: Wow. So if, indeed, there are questions about how much the Saudis really have and that there isn't necessarily going to be an impact here, I mean, that's how this meeting was touted.

And then, just last week, you had President Bush touting his energy plan and saying, we need to be less dependent on foreign resources. Yet today, yesterday, we're hearing all about, look, we're meeting to bring those gas prices down. They're coming to our rescue.

UNGER: Well, I think a lot of it may have been precisely for public consumption. But I don't see any real measures taken to decrease dependency on the Middle East.

In addition, you see China growing as a power, making oil deals with Iran, with Saudi Arabia itself, with Venezuela, all of which are powerful oil producing companies.

PHILLIPS: So you keep the oil flowing, because the United States wants to keep a good relationship going with Saudi Arabia, because the United States doesn't want Saudi Arabia dealing with terrorists, and wants Saudi Arabia to crack down on terrorism. Is that a fair assessment?

UNGER: Well, in addition, we're addicted to oil. We have over 210 million cars and light trucks on the highways. We are completely dependent on foreign oil. So -- so that is our primary goal in having a relationship with Saudi Arabia.

And I think in large measure, that keeps the U.S. from cracking down on the Saudis' role in terror. Remember, 15 out of 19 of the hijackers in 9/11 were the Saudis, and the Saudis played a big role in funding al Qaeda.

PHILLIPS: And Craig, of course, critics were saying, "Oh, boy, I saw this meeting yesterday. I'm thinking of 'Fahrenheit 9/11' and thinking about the war in Iraq and thinking this all just comes down to oil."

UNGER: Well, it's an extremely close personal relationship the Bushes have had with the Saudis. I traced a total of more than $1.4 billion going from the house of Saud to companies in which the Bushes and their allies had an important relationship. So this is a relationship going back for more than a generation between the Bush family and the Saudis.

PHILLIPS: Craig Unger, you know the book, "House of Bush, House of Saud," we appreciate your time today. Always a pleasure to talk to you, Craig. Thank you.

UNGER: Thank you.

PHILLIPS: Now, a bit of a different view, of course, from a man who served as ambassador to Saudi Arabia in the first administration of George W. Bush, appointed shortly after the 9/11 attacks. Robert Jordan joins us now from Dallas with his viewpoint on the U.S.-Saudi relations.

Ambassador, good to see you.

ROBERT JORDAN, FORMER AMBASSADOR TO SAUDI ARABIA: Good to see you.

PHILLIPS: I guess I want to get your first reaction to what Craig Unger had to say. And that really when you look -- when you have a reality check, there really isn't much the Saudis can do when it comes to our rising gas prices here right now in the United States.

JORDAN: no. Anyone who thinks the Saudis can dial down the price at the pump by 20 cents overnight is just living with the pixies. This is a long-term issue. It's one that requires billions of dollars of investment.

The Saudis have committed to invest about $50 billion over the next four or five years to raise their capacity from about nine to 11 million barrels a day up to 12, 12 1/2, and ultimately 15. That's a huge percentage increase. Is it going to be enough? Perhaps not. But you've got to start somewhere. And they're the world's only major supplier that has substantial excess capacity and can develop it.

What we've got be doing here is also working on our own policies, dealing with the refinery issue. There's a tremendous bottleneck in refining capacity here. If the Saudis produced all the oil in the ground tomorrow, there would be no one who could refine it.

PHILLIPS: So do you think there could ever come a point where the U.S. would not be dependent on Saudi Arabia? I mean, I mentioned this...

JORDAN: Sure.

PHILLIPS: ... you know, in the interview with Craig Unger, that President Bush just last week saying, "Look, I've got this new energy policy. We want to become less dependent on foreign resources." Do you think that would ever happen?

JORDAN: It will happen over time, but it's not a matter of whether we're dependent on Saudi Arabia versus Venezuela versus Nigeria. It's all traded on the international oil markets. And if we said to the Saudis tomorrow, "We won't buy any more of your oil," someone would buy it. And then there would be a tremendous problem in our having access to the world markets.

What we've got to do is develop an energy policy that over time reduces the addiction to hydrocarbons that we currently have. This is something that requires, again, a long-term policy. But for most of the rest of my life, my guess is we're going to be dependent on oil, and that means foreign oil because there just isn't that much of it being produced in the United States.

PHILLIPS: Ambassador, Craig Unger also mentioning investigative side of his book about $1.4 million from the Saudis going to the Bush family, Bush owned companies. Do you feel good about that number?

JORDAN: I'm not going to comment on that. I think there's a lot of speculation in that book.

The one thing I do know is that the 9/11 Commission has pretty well undercut a lot of the credibility of what Mr. Unger says in his book. And so I'll just let the public make their judgment on that.

PHILLIPS: So let me ask you. If indeed it turns out the U.S. does become less dependent, say, on Saudi Arabia for oil, will that affect this war on terrorism?

There's been so much talk about, look, we've got to maintain that relationship with regard to oil in order to maintain a strong relationship about fighting terrorism. Do you think Saudi Arabia would ever back off of this fight with terrorism due to oil, and how much goes back and forth?

JORDAN: Well, here's the story on that. The Saudis, finally after the bombings in Riyadh that occurred in May of 2003, when I was there, finally realized that al Qaeda is now trying to bring down the world family as much as they're trying to attack the United States.

Since that time, over generally the last two years, they've done a much better job in going after the terrorists. They killed about 21 -- captured or killed about 21 of the 26 most wanted. They killed every single al Qaeda head in Saudi Arabia over the last year or so.

Now is this enough? It certainly is not. They've got with to do more on the ideological support for terrorism. Some of the sermons that occur in the mosques, some of what we see being taught in the schools and in that textbooks.

They're making progress on that, but that has to take the oxygen out of the terrorists. And I think this is something they will do. But I don't think merely because we are so dependent on their oil, we're giving them a free pass on this. If anything, I think both the United States and the Saudis have stepped up their game in the last two years and have been cooperating pretty well.

PHILLIPS: Former U.S. ambassador to Saudi Arabia, Robert Jordan. Thanks so much for your time, sir.

JORDAN: Thank you.

PHILLIPS: Straight ahead, a check of the markets is just ahead. Plus, they started to dig up an old tree in their back yard. What they dug up instead is nothing less than amazing. Two Massachusetts men and their lavish loot, next on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Pictures now, courtesy of affiliate KPRC. The president of the United States, along with Tom DeLay, majority leader, as you know, right now, in the middle of a controversy concerning trips paid for by organizations sponsored by lobbyists. The two seen together here as the -- Bush has been traveling around touting his Social Security plan.

We're going to talk more about what they did talk about today and also what the president had to say about Tom DeLay, if anything, and the controversy surrounding him, in addition to how the crowd responded to Tom DeLay. Of course, Judy Woodruff is going to talk more about that on "INSIDE POLITICS."

Meanwhile, did you ever think you could hit the jackpot by digging up some old cans?

(BEGIN VIDEO CLIP)

TIM CREBASE, HOMEOWNER: I was digging up the tree and all of a sudden, like, I hit this crate.

(END VIDEO CLIP)

PHILLIPS: Oh, yes, more like this guy hit the jackpot while digging up that old crate in his back yard. Inside the crate were nine rusty tin cans containing bills dating from 1899 to 1929.

Now, considering the antique value, the haul could be worth 100,000 of today's dollars.

So how did he get it there? Well, popular theories include bank robbers or Prohibition era bootleggers. Bet there's a run on backhoe rentals in town. I guess there is. I guess.

Bet there's a run on backhoe rentals around town.

Susan Lisovicz, I tell you what, you know, they write this creative stuff. I don't get a chance to look at it, and I just butcher it. But you know what I was trying to say.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's why my producer writes everything out phonetically for me. You'd think that I would be able to get through some of this stuff.

PHILLIPS: Backhoe back yard around town. Say it six times. Lots of money.

LISOVICZ: Lots of money.

PHILLIPS: Help me out, Susan.

(STOCK REPORT)

LISOVICZ: I got through pseudoephedrine, Kyra. I practiced that one. Back to you.

PHILLIPS: It wasn't that bad last week, I promise. Susan, thank you so much.

LISOVICZ: My pleasure.

PHILLIPS: All these big words. We're not medical reporters. What can I say?

Well, that wraps up this Tuesday edition of LIVE FROM. Now, here in Atlanta, Judy Woodruff with a preview of "INSIDE POLITICS."

Great to have you here.

JUDY WOODRUFF, HOST, "INSIDE POLITICS": We're not talking backhoes either. OK?

PHILLIPS: Thanks goodness.

WOODRUFF: Thank you, Kyra. I appreciate it. Well, today on "INSIDE POLITICS," we're going to go live to Texas for a look at the battle over Social Security. We'll also have the latest over Majority Leader Tom DeLay's status with voters at home and his colleagues in Washington.

Plus British Prime Minister Tony Blair certainly is getting a little help from his friends. Bill Schneider looks at how his American friends could help or hurt in the next week's election.

"INSIDE POLITICS" begins in just a moment.

(COMMERCIAL BREAK)

END

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Aired April 26, 2005 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: New York City officials say that the design for the Freedom Tower is being modified to improve safety after security experts raised concerns. The changes are expected to delay the planned 2009 opening by several months.
Higher mortgage rates are not slowing the housing market, at least not yet. Sales of new homes soared 12.2 percent last month. That's a record high. Despite higher sales, the median price of a new home actually dropped more than nine percent to $212,000.

First this hour, the most talked about plane ride in Washington. Within the half hour, President Bush is to climb aboard Air Force One to return to the nation's capital, and he's invited House Majority Leader Tom DeLay to fly back with him.

Live pictures now. Now, there may be nothing to it, but the invitation comes when DeLay's repeated ethical lapses have begun to stir worry within the Republican Party.

CNN's Suzanne Malveaux has the story now, live from Galveston, Texas -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Kyra, of course, this is a man who's been consumed by ethics charges. But today, Tom DeLay was all smiles. He attended this event on Social Security. He represents a neighboring district of Galveston, Texas.

And of course, it was interesting even before this event began there was a group that stood up spontaneously, said, "We love you, Tom," started shouting. The audience started applauding. He stood up. He acknowledged them. Again, he was very appreciative of the support here.

White House officials say that he was not invited on this trip to resuscitate his image or his reputation, but it is clear that that is, of course, the desired impact here.

It is also clear, of course, that in the beginning of President Bush's remarks, he valued Tom DeLay. This is a man who was nicknamed the hammer. He is also someone who is critical to pushing forth President Bush's agenda.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I appreciate the leadership of Congressman Tom DeLay in working on important issues that matter to the country.

(END VIDEO CLIP)

MALVEAUX: Now Kyra, as you mentioned, Tom DeLay is going to be traveling back on Air Force One with the president back to Washington D.C. Very interesting enough in this day, in this event, because you did not see the two men standing side by side together. He was about five rows back. There are no pictures of the two men together.

But it is not hard to imagine that they'll be having a heart-to- heart conversation aboard Air Force One.

Now, one of the reasons, of course, that Tom DeLay is so important is pushing forward the plan, the Social Security reform plan that the president has been trying to sell Americans on, those private investment accounts.

So far, it's been a very tough sell. As you know, he's winding down his 60 days 60 stop tour, campaign style, to sell his program. That officially ends on Sunday. But a White House spokesperson says, "Well, look, we're finished with phase one. We addressed the problem. Now we're going to go to phase two to talk about the solutions."

Some critics say the reason why he's going from state to state, county to county, is because obviously, there are a lot of Americans who are not buying this plan -- Kyra.

PHILLIPS: Suzanne Malveaux, thank you so much.

Senators are still deadlocked over seven of President Bush's judicial nominees. The leaders of both parties, though, say they're still talking in hopes of ending that standoff.

Earlier, there was word of a compromised proposal that called for the GOP to end its threat to eliminate judicial filibusters. In exchange, Democrats would help confirm at least two of the blocked nominees. Majority Leader Bill Frist rejected it, saying he's not interested in any deal that doesn't ensure the confirmation of all the nominees.

Karl Rove, deputy White House chief of staff agrees. "USA Today" quotes him as saying every judicial nominee deserves an up or down vote.

The investigation presses on into the deaths of two Georgia toddlers. Three-year-old Jonah Payne and his 2-year-old sister, Nicole, were found dead yesterday, two days after they vanished from their home in Warrenton, Georgia. The coroner, who completed their autopsy today, had this to say about any suspicion of foul play.

(BEGIN VIDEO CLIP)

PAUL LOWE, WARREN COUNTY, GEORGIA, CORONER: No visible signs of trauma. And I stress to you, there is no indication that there is any foul play involved in this. But there again, the investigation is ongoing, and we'll be talking with the sheriff and GBI later. And we'll be putting the pieces of the puzzle together.

(END VIDEO CLIP)

PHILLIPS: The toddlers were pulled from an algae covered sanitation pond near their home. The children's mother says that the 2-year-old knew how to unlock the front door and briefly left the home with her brother early Saturday.

Other news across America now. Police in Florida are searching for another missing girl. This time, it's 12-year-old Margarita Aguilar-Lopez. She was last seen last night in Brandenton, which is south of Tampa. Police say that she was left in the care of the man seen here, Antonio Paulino-Perez.

The woman at the center of the Wendy's chili scare says she's eager to return to California to face charges. Anna Ayala appeared at an extradition hearing in Las Vegas today. She's facing grand larceny charges over her claim that she found a finger in her Wendy's chili. Her attorney calls the charges ridiculous.

More testimony in the Michael Jackson trial. A travel agent told jurors today she was asked by Jackson's associates to send the family of Jackson's accuser to Brazil on a one way flight. Prosecutors contend it was part of a plan to keep the family in Brazil after the airing of the Jackson documentary.

Meanwhile, Jackson's defense team is minus one attorney. Brian Oxman, seen here on the left, is no longer representing the pop star. No reason given, but yesterday Oxman was seen having an animated conversation with lead defense attorney Thomas Mesereau.

Well, a short time ago, Defense Secretary Donald Rumsfeld disputed a report by CNN that the Pentagon has cleared American troops of fault for the death of an Italian intelligence agent.

Italian agent Nicola Calipari was shot and killed at a checkpoint in March as he accompanied an Italian journalist who had just freed as a hostage. Conflicting accounts of the shooting have become the subject of tension between the U.S. and Italy.

Yesterday, a senior Pentagon official told CNN the official probe is over and it clears the Americans. Rumsfeld says that's not so. The probe is ongoing.

Also in Iraq, the American investigation into Saddam Hussein's weapons is finally in the books. Consistent with the interim finding, the team now reports that when U.S. forces invaded Iraq, seeking WMD, there were no such weapons to be found.

The probe also concluded it's highly unlikely that Iraq hid weapons in neighboring Syria, as claimed by Vice President Dick Cheney.

A recent Gallup poll found half of all Americans now believe the Bush administration deliberately misled them on Iraq's capabilities. Two years ago only a third of those polled suspected deliberate deception.

Well, the United Nations is trying to verifying that Syria has completely withdrawn its troops from Lebanon. Syria has reported that its 29-year military presence in Lebanon is over.

CNN senior international correspondent Brent Sadler witnessed a formal farewell ceremony today in Lebanon's Bekaa Valley. He reports now from Beirut.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): Two armies on parade for an historic day: Lebanese soldiers and the last group of departing Syrian soldiers, marking this ceremonial end to 29 years of Syrian entrenchment in Lebanese life.

The top brass honored each other with medals, including praise for Syria's outgoing chief of military intelligence. Anti-Syrian Lebanese say he was the much feared boss of Syrian management over Lebanese affairs.

For weeks the Syrians had been uprooting their troops and tanks, forced to withdraw under intense international and Lebanese pressure. It followed the February assassination of former Lebanese Prime Minister Rafik Hariri in a massive bomb blast, turning a popular Lebanese tide against Syria's long time presence here. Reemerging briefly in Beirut when a group of relatives of missing Lebanese scuffled with security forces outside a still pro-Syrian parliament.

(on camera) This salute to Syria seems to end one aspect of an international crisis, but it may lead to another, focusing on Lebanon's Hezbollah, staunch allies of Syria.

(voice-over) The militant group, labeled terrorist by the U.S. and Israel, still has weapons. It remains at the forefront of international pressure to disarm.

At the border, some Lebanese danced for joy as the Syrians officially completed their pullout.

UNIDENTIFIED MALE: The day of freedom is the day of sovereignty, is the day of happiness, simply.

SADLER: A chance, it's hoped, for Lebanon to stand on its own feet and for politicians to eventually manage their own affairs if the Syrians are well and truly gone.

Brent Sadler, CNN, Beirut.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, Crown Prince Abdullah walked hand-in- hand yesterday, but will Saudis lend a hand on oil prices here in the U.S. Well, it depends on who you ask. Straight ahead, Craig Unger, author of "House of Bush, House of Saud," joins me, as does former ambassador to Saudi Arabia, Robert Jordan. And later, big ticket back yard booty. Yes, I did say booty. There are plenty of definitions. Look it up in the dictionary. You might not think unearthing some old tin cans is anything to sing about. But it's what was inside these cans you just are going to find hard to believe.

(COMMERCIAL BREAK)

PHILLIPS: Memorable pictures from Crawford, Texas, yesterday as President Bush strolled hand-in-hand with Saudi Crown Prince Abdullah, but will this photo op of friendship translate into lower prices at the pump?

Officials say the meeting ended with no promises on short-term output but that Saudi Arabia would gradually increase output over the next decade.

Craig Unger, the investigative reporter and author of "The House of Bush, House of Saud," joins us now from New York with his perspective on that meeting.

Good to see you, Craig.

CRAIG UNGER, AUTHOR, "HOUSE OF BUSH, HOUSE OF SAUD": Good to be here.

PHILLIPS: So what are your thoughts, looking at those pictures, talking about that meeting? Was it really all about oil prices?

UNGER: Well, I think it was. I think the Saudis may be able to increase production a bit. But in the long run, I doubt that that will have much impact on oil prices because of the increasing global demands from countries like China, which is now making over five million automobiles a year.

There's still enormous instability in the Middle East, and the war on terror, in some measure, is a war -- is an oil war. That is, there have been over 250 attacks by insurgents on oil facilitates in Iraq and, to a lesser extent, in Saudi Arabia.

So I'm not sure how much the Saudis can really help out. In addition, there are other new questions being raised by other oil analysts about exactly how much the Saudis reserves have. So a lot of analysts predict oil prices to go up to over $100 a barrel.

PHILLIPS: Wow. So if, indeed, there are questions about how much the Saudis really have and that there isn't necessarily going to be an impact here, I mean, that's how this meeting was touted.

And then, just last week, you had President Bush touting his energy plan and saying, we need to be less dependent on foreign resources. Yet today, yesterday, we're hearing all about, look, we're meeting to bring those gas prices down. They're coming to our rescue.

UNGER: Well, I think a lot of it may have been precisely for public consumption. But I don't see any real measures taken to decrease dependency on the Middle East.

In addition, you see China growing as a power, making oil deals with Iran, with Saudi Arabia itself, with Venezuela, all of which are powerful oil producing companies.

PHILLIPS: So you keep the oil flowing, because the United States wants to keep a good relationship going with Saudi Arabia, because the United States doesn't want Saudi Arabia dealing with terrorists, and wants Saudi Arabia to crack down on terrorism. Is that a fair assessment?

UNGER: Well, in addition, we're addicted to oil. We have over 210 million cars and light trucks on the highways. We are completely dependent on foreign oil. So -- so that is our primary goal in having a relationship with Saudi Arabia.

And I think in large measure, that keeps the U.S. from cracking down on the Saudis' role in terror. Remember, 15 out of 19 of the hijackers in 9/11 were the Saudis, and the Saudis played a big role in funding al Qaeda.

PHILLIPS: And Craig, of course, critics were saying, "Oh, boy, I saw this meeting yesterday. I'm thinking of 'Fahrenheit 9/11' and thinking about the war in Iraq and thinking this all just comes down to oil."

UNGER: Well, it's an extremely close personal relationship the Bushes have had with the Saudis. I traced a total of more than $1.4 billion going from the house of Saud to companies in which the Bushes and their allies had an important relationship. So this is a relationship going back for more than a generation between the Bush family and the Saudis.

PHILLIPS: Craig Unger, you know the book, "House of Bush, House of Saud," we appreciate your time today. Always a pleasure to talk to you, Craig. Thank you.

UNGER: Thank you.

PHILLIPS: Now, a bit of a different view, of course, from a man who served as ambassador to Saudi Arabia in the first administration of George W. Bush, appointed shortly after the 9/11 attacks. Robert Jordan joins us now from Dallas with his viewpoint on the U.S.-Saudi relations.

Ambassador, good to see you.

ROBERT JORDAN, FORMER AMBASSADOR TO SAUDI ARABIA: Good to see you.

PHILLIPS: I guess I want to get your first reaction to what Craig Unger had to say. And that really when you look -- when you have a reality check, there really isn't much the Saudis can do when it comes to our rising gas prices here right now in the United States.

JORDAN: no. Anyone who thinks the Saudis can dial down the price at the pump by 20 cents overnight is just living with the pixies. This is a long-term issue. It's one that requires billions of dollars of investment.

The Saudis have committed to invest about $50 billion over the next four or five years to raise their capacity from about nine to 11 million barrels a day up to 12, 12 1/2, and ultimately 15. That's a huge percentage increase. Is it going to be enough? Perhaps not. But you've got to start somewhere. And they're the world's only major supplier that has substantial excess capacity and can develop it.

What we've got be doing here is also working on our own policies, dealing with the refinery issue. There's a tremendous bottleneck in refining capacity here. If the Saudis produced all the oil in the ground tomorrow, there would be no one who could refine it.

PHILLIPS: So do you think there could ever come a point where the U.S. would not be dependent on Saudi Arabia? I mean, I mentioned this...

JORDAN: Sure.

PHILLIPS: ... you know, in the interview with Craig Unger, that President Bush just last week saying, "Look, I've got this new energy policy. We want to become less dependent on foreign resources." Do you think that would ever happen?

JORDAN: It will happen over time, but it's not a matter of whether we're dependent on Saudi Arabia versus Venezuela versus Nigeria. It's all traded on the international oil markets. And if we said to the Saudis tomorrow, "We won't buy any more of your oil," someone would buy it. And then there would be a tremendous problem in our having access to the world markets.

What we've got to do is develop an energy policy that over time reduces the addiction to hydrocarbons that we currently have. This is something that requires, again, a long-term policy. But for most of the rest of my life, my guess is we're going to be dependent on oil, and that means foreign oil because there just isn't that much of it being produced in the United States.

PHILLIPS: Ambassador, Craig Unger also mentioning investigative side of his book about $1.4 million from the Saudis going to the Bush family, Bush owned companies. Do you feel good about that number?

JORDAN: I'm not going to comment on that. I think there's a lot of speculation in that book.

The one thing I do know is that the 9/11 Commission has pretty well undercut a lot of the credibility of what Mr. Unger says in his book. And so I'll just let the public make their judgment on that.

PHILLIPS: So let me ask you. If indeed it turns out the U.S. does become less dependent, say, on Saudi Arabia for oil, will that affect this war on terrorism?

There's been so much talk about, look, we've got to maintain that relationship with regard to oil in order to maintain a strong relationship about fighting terrorism. Do you think Saudi Arabia would ever back off of this fight with terrorism due to oil, and how much goes back and forth?

JORDAN: Well, here's the story on that. The Saudis, finally after the bombings in Riyadh that occurred in May of 2003, when I was there, finally realized that al Qaeda is now trying to bring down the world family as much as they're trying to attack the United States.

Since that time, over generally the last two years, they've done a much better job in going after the terrorists. They killed about 21 -- captured or killed about 21 of the 26 most wanted. They killed every single al Qaeda head in Saudi Arabia over the last year or so.

Now is this enough? It certainly is not. They've got with to do more on the ideological support for terrorism. Some of the sermons that occur in the mosques, some of what we see being taught in the schools and in that textbooks.

They're making progress on that, but that has to take the oxygen out of the terrorists. And I think this is something they will do. But I don't think merely because we are so dependent on their oil, we're giving them a free pass on this. If anything, I think both the United States and the Saudis have stepped up their game in the last two years and have been cooperating pretty well.

PHILLIPS: Former U.S. ambassador to Saudi Arabia, Robert Jordan. Thanks so much for your time, sir.

JORDAN: Thank you.

PHILLIPS: Straight ahead, a check of the markets is just ahead. Plus, they started to dig up an old tree in their back yard. What they dug up instead is nothing less than amazing. Two Massachusetts men and their lavish loot, next on LIVE FROM.

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PHILLIPS: Pictures now, courtesy of affiliate KPRC. The president of the United States, along with Tom DeLay, majority leader, as you know, right now, in the middle of a controversy concerning trips paid for by organizations sponsored by lobbyists. The two seen together here as the -- Bush has been traveling around touting his Social Security plan.

We're going to talk more about what they did talk about today and also what the president had to say about Tom DeLay, if anything, and the controversy surrounding him, in addition to how the crowd responded to Tom DeLay. Of course, Judy Woodruff is going to talk more about that on "INSIDE POLITICS."

Meanwhile, did you ever think you could hit the jackpot by digging up some old cans?

(BEGIN VIDEO CLIP)

TIM CREBASE, HOMEOWNER: I was digging up the tree and all of a sudden, like, I hit this crate.

(END VIDEO CLIP)

PHILLIPS: Oh, yes, more like this guy hit the jackpot while digging up that old crate in his back yard. Inside the crate were nine rusty tin cans containing bills dating from 1899 to 1929.

Now, considering the antique value, the haul could be worth 100,000 of today's dollars.

So how did he get it there? Well, popular theories include bank robbers or Prohibition era bootleggers. Bet there's a run on backhoe rentals in town. I guess there is. I guess.

Bet there's a run on backhoe rentals around town.

Susan Lisovicz, I tell you what, you know, they write this creative stuff. I don't get a chance to look at it, and I just butcher it. But you know what I was trying to say.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's why my producer writes everything out phonetically for me. You'd think that I would be able to get through some of this stuff.

PHILLIPS: Backhoe back yard around town. Say it six times. Lots of money.

LISOVICZ: Lots of money.

PHILLIPS: Help me out, Susan.

(STOCK REPORT)

LISOVICZ: I got through pseudoephedrine, Kyra. I practiced that one. Back to you.

PHILLIPS: It wasn't that bad last week, I promise. Susan, thank you so much.

LISOVICZ: My pleasure.

PHILLIPS: All these big words. We're not medical reporters. What can I say?

Well, that wraps up this Tuesday edition of LIVE FROM. Now, here in Atlanta, Judy Woodruff with a preview of "INSIDE POLITICS."

Great to have you here.

JUDY WOODRUFF, HOST, "INSIDE POLITICS": We're not talking backhoes either. OK?

PHILLIPS: Thanks goodness.

WOODRUFF: Thank you, Kyra. I appreciate it. Well, today on "INSIDE POLITICS," we're going to go live to Texas for a look at the battle over Social Security. We'll also have the latest over Majority Leader Tom DeLay's status with voters at home and his colleagues in Washington.

Plus British Prime Minister Tony Blair certainly is getting a little help from his friends. Bill Schneider looks at how his American friends could help or hurt in the next week's election.

"INSIDE POLITICS" begins in just a moment.

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