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Top Republican Congressman Quits and Cries After Pleading Guilty to Corruption Charges. Bush Pushing his Plan to Allow Illegal Immigrants Now in This Country to Get Guest Worker Visas. Saddam Hussein's Trial Resumed and then Adjourned Once Again Today In Between Quite a Display of Fireworks.

Aired November 28, 2005 - 19:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thanks very much, Lou. And we'll be seeing you back here in just a few minutes to debate the president's immigration policies. Lou Dobbs versus Jorge Ramos. That's coming up here in THE SITUATION ROOM.
It's 7:00 p.m. in Washington and you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you the day's top stories.

Happening now. It is 4:00 p.m. in San Diego where a tough former fighter pilot and top Republican congressman quits and cries after pleading guilty to corruption charges involving the sale of his home. Will prison be his next home?

It's 3:00 in the morning in Baghdad. With bluster and bravado, Saddam Hussein goes back to court acting like he's still running the country. We'll take you inside the courtroom.

And it's 7:00 p.m. in New York where they moved from the flop house to penthouse. Bed bugs are biting and they have got the whole city tossing and turning. You're in THE SITUATION ROOM.

In California, a stunning admission from a now ex congressman that he accepted more than $2 million in bribes, disgraced his office and knows great shame. Republican Randy "Duke" Cunningham pleaded guilty today in a wide-ranging conspiracy case involving payments from defense contractors in the form of cash, vacations and even antiques, some $2.4 million.

Then the former navy fighter pilot whose exploits inspired the movie "Top Gun" announced his resignation. Listen to this emotional and, at times, tearful resignation.

(BEGIN VIDEO CLIP)

REP. RANDY CUNNINGHAM, (R) CA: I announced several months ago that I would not seek reelection I publicly declared my innocence. Because I was not strong enough to face the truth, so I misled my family, friends, staff, colleagues, the public and even myself. For all of this I am deeply sorry. The truth is I broke the law, concealed my conduct, and disgraced my office. I know that I will forfeit my freedom, my reputation, my worldly possessions, most importantly the trust of my friends and family.

Some time ago I asked lawyers to inform U.S. attorney Carol Lamb that I would plead guilty and begin serving a prison term. Today is a culmination of that process. I will continue to cooperate with the government's ongoing investigation to the best of my ability. In my life I've had great joy and great sorrow, and now I know great shame.

I learned in Vietnam that the true measure of a man is how he responds to adversity. I can't undo what I've done, but I can atone.

And now I'm almost 65 years old, and I enter the twilight of my life. I intend to use the remaining time that God grants me to make amends, and I will. The first step in that journey is to admit fault and apologize, and I do apologize. The next step is to face the consequences of my action like a man. Today I have taken that first step and, with God's grace, I will take the second. God bless you.

(END VIDEO CLIP)

BLITZER: Democrats already are seizing on Cunningham's admission in a statement. The House Minority Leader Nancy Pelosi's says Cunningham's case is, quote - I am quoting now "just the latest example of the culture of corruption that pervades the Republican- controlled Congress."

Let's bring in our congressional correspondent Ed Henry. He is standing by with more on the politics of what has happened today. Ed?

ED HENRY, CNN CORRESPONDENT: That's right, Wolf. In fact, that statement from Nancy Pelosi she has previously called it a culture of corruption and cronyism. And now this new Cunningham case is basically exhibit E or F, if you're trying to keep score at home, in this case. Basically Democrats have been holding out Michael Brown at FEMA as a crony, they have gone after Tom DeLay, obviously, who has been indicted twice. Bill Frist who is under investigation by the Securities and Exchange Commission as well as the U.S. Justice department, this Jack Abramoff Republican lobbyist under federal investigation, indicted down in Florida, now facing also a grand jury investigation in Washington, some key Republican lawmakers like DeLay, like Bob Ney of Ohio now being drawn into that investigation as well.

Republicans point out the problem here for Democrats, these are all separate cases, individual things. It is not all linked. You can't just throw the kitchen sink at them. The problem for Republicans is all of these stories are starting to pile up. It is a drip drip of scandal from California to Washington. And at some point it's clear this is becoming an issue they're going to have to confront heading into the mid-term elections next November, Wolf.

BLITZER: Ed, thanks very much.

A week after we get indictment of the vice president's now former chief of staff, Lewis "Scooter" Libby. Tonight the president is in the southwestern part of the United States declaring a crackdown on border security to help protect the nation from terror attacks. But at the same time he's pushing his plan to allow illegal immigrants now in this country to get guest worker visas, an idea many conservatives in his party don't like.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, U.S. PRESIDENT: We're going to strengthen enforcement of our immigration laws within our country. And together with Congress, we're going to create a temporary worker program that will take pressure off the border, bring workers from out of the shadows, and reject amnesty.

(END VIDEO CLIP)

BLITZER: The president's plan may not be all that easy to carry out because of various political problems and needs tugging at him. Let's bring in our senior political correspondent Candy Crowley, she's got the story behind this latest development.

Candy?

CANDY CROWLEY, CNN CORRESPONDENT: Wolf, the chairman of the Democratic Party says the president is allowing, quote, "anti- immigrant extremist Republicans to dominate the debate on immigration reform." But honestly, Howard Dean is the least of the president's hurdles on this one.

(BEGIN VIDEOTAPE)

CROWLEY (voice-over): An unpopular war, economic doubts, a president in political trouble, marquis party names in legal trouble and an election coming up. The only thing missing from the Republican misery index is an inner party dispute. Oh, wait. There is the matter of those 10 million to 11 million illegal immigrants living and working in the U.S.

REP. JEFF FLAKE, (R) AZ: We desperately need a guest worker plan to recognize that we do need the labor. They're here and we have to deal with those who are here illegally now.

REP. TOM TANCREDO, (R) CO: But frankly, we are at a point in this nation's history where we cannot afford to keep our borders porous in order to provide employers with cheap labor. I mean, it just can't happen anymore.

CROWLEY: It is Republicans versus other Republicans as the president pushes a border security plan which, if he can pull it off, could bring a little oomph to an administration that needs some. Border security is a gimme. Everybody wants more of it. It is the fate of those who have already crossed the border illegally that has the president juggling inside his own party. Pro business elements want a lenient guest worker program.

FLAKE: If you really want a secure border, you have got to have a legal avenue for workers to come and return home. The president recognizes that and that's why he's on the right track.

CROWLEY: Many conservatives are more focused on better patrol at the border and a crackdown inside the country. TANCREDO: Just enforce the law. Is that really such an alien concept? Enforce the law. If you do not give people a job because they are here illegally, those folks go home. You do not have to, quote, "round people up."

CROWLEY: Add to Republican cross-currents, Latino Americans, a huge and growing voting block sense anything that looks like immigrant bashing and what you have a president trying to find a sweet spot in an issue with legal, political and cultural implications.

BUSH: The American people should not have to choose between a welcoming society and a lawful society. We can have both at the same time.

(END VIDEOTAPE)

CROWLEY (on camera): Most polls show immigration reform is not uppermost in the minds of most voters but many conservatives disagree. The president's credibility is on the line, said one. Another suggested if the president doesn't follow through on a tough plan for illegal immigrants, conservatives would sit out the next election. It is difficult to know if that's a threat or bargaining chip. Wolf?

BLITZER: Candy Crowley, thanks very much.

And to our viewers, you will get a sense of just how combustible the immigration debate has become when CNN's Lou Dobbs and Univision anchor Jorge Ramos take on the border issue and one another. That's only a few minutes away right here in THE SITUATION ROOM.

Let's head down to the CNN Center in Atlanta. Our Betty Nguyen is standing by with a closer look at some other stories making news.

Hi, Betty.

BETTY NGUYEN, CNN ANCHOR: Hi there, Wolf.

The government of Canada, the prime minister there, Paul Martin, well, that has fallen. We're just learning this. Martin's ruling Liberal Party was toppled in a no confidence vote in Canada's House of Commons this evening. That action triggers a likely election in January. Now to other news.

Winter has found its way to the Plains States. The National Weather Service has posted blizzard and winter storm warnings for parts of Colorado, Kansas, Nebraska, Minnesota and North and South Dakota. The weather is already blamed for at least five deaths. Interstate 70 is closed for more than 300 miles from Denver to Kansas, which is stranding travelers and forecasters say some areas have six- foot snow drifts.

Well, investigators in Columbus, Ohio blamed faulty equipment for this spectacular explosion you see there of two power station transformers early this morning. No one was hurt but the blast sent balls of fire and smoke soaring skyward on the city's north side. Power was knocked out to about 35,000 customers. Six families living nearby were evacuated but allowed to return home an hour later.

And rescue at sea. A cruise ship bound from Cozumel to Miami, Florida, plucked by 10 people from a stranded boat after passengers saw the group struggling in the water. Now, it is suspected the people were trying to make their way to the U.S. from Cuba when the boat's engine failed. But they were saved. Wolf?

BLITZER: All right, Betty. Thanks very much.

Let's go back to New York. Right now Jack Cafferty is standing by with this question for this hour.

Jack?

JACK CAFFERTY, CNN ANCHOR: Wolf, it looks like the special prosecutor in the CIA leak case is still digging and perhaps is a long way from concluding his business. Patrick Fitzgerald has asked a second "Time Magazine" reporter to give a deposition. Viveca Novak, no relation to Robert Novak, will give a deposition about her conversations Karl Rove's lawyer, a guy named Robert Luskin. Novak contributed to articles where Luskin talked about the nature of what was said between Rove and Matthew Cooper. Cooper was the first "Time Magazine" reporter who testified in the CIA case.

Fitzgerald recently requested a second grand jury in the CIA leak investigation, which is a pretty strong indication that more charges are possible. So here's the question. What do you think the latest in the CIA leak case means for one Karl Rove? You can email us at caffertyfile@cnn.com or go to cnn.com/cafferty file. I would guess it can't be good, Wolf. What do you think?

BLITZER: I suspect you're probably right. But we'll see what the prosecutor comes up with. We're going to have a lot more, by the way, Jack, on this story coming up later here in THE SITUATION ROOM.

Also coming up, border at the -- battles at the border. President Bush pushing his plan to stem illegal immigration. But is either side buying it? Lou Dobbs and Jorge Ramos join us live. Plus --

More on Karl Rove, as we just said. Will new testimony in the CIA leak case mean more troubles for him? We're taking a closer look.

And bed bugs biting. They are running rampant in one city causing a nightmare for hotels and apartment building. Our Mary Snow is investigating. Stay with us.

(COMMERCIAL BREAK)

BLITZER: President Bush today performed a border balancing act. He called for a new crackdown on illegal immigration from Mexico but at the same time he again floated a plan to let illegal immigrants work legally in this country. Joining us now, two guests with two very different perspectives. From New York, CNN's Lou Dobbs, the host of LOU DOBBS TONIGHT and from Miami, Univision anchor Jorge Ramos, he is the author of the book "The Latino Wave." Gentlemen, thanks very much. Lou, what's wrong with letting these illegal workers apply for visas, get work permits to work up to six years in this country, millions of them, making them legal workers in the United States, which is what the president is proposing?

DOBBS: After the president, Wolf, proposed in 2004 his guest worker program which most consider an amnesty program, we saw illegal immigration rise dramatically, over 40 percent within the course of eight months into this country. Three million illegal aliens crossed the border at the suggestion the president put forward ill-defined and poorly formed, really unformed.

So that's the first problem with it, especially when the issue is we're in a global war on terror and the issue is border security. Now your third - the lower third there, you had immigration battles. This is not about immigration This is about illegal immigration. Like everyone else in this country who considers themself an American, I believe strong that this is a nation of immigrants. But legal immigration is the issue.

BLITZER: All right. Jorge, what's wrong with Lou's thinking?

JORGE RAMOS, UNIVISION ANCHOR: I can't believe what I'm hearing, Lou. Because obviously this is a country of immigrants. And we're not talking about criminals, we're not talking about terrorists. We're talking about 11 million undocumented immigrants in this country who are making this a better country. And not only that, I think -- I had the opportunity to talk to many people in the immigration field. And what they believe is that the president's proposals does not go far enough because the president's proposal that all these immigrants might stay in this country for six years. What is going to happen after that?

Believe me, they are not going to go back to their countries of origin. And I do understand there's also a very important issue with border security, but that has to be dealt at the same time as we somehow provide legal status to those who are already in this country.

BLITZER: All right. What about that, Lou?

DOBBS: Well, first, the issue is border security. First and foremost ...

RAMOS: Those who are here already, Lou. Those who are already here in this country.

DOBBS: I'm sorry. What's in this country?

BLITZER: He's talking about the 11 million who are already here illegally. What do you do with those people?

RAMOS: What are you going to do with them ...

DOBBS: If I may finish what I'm saying.

RAMOS: Are you going to make concentration camps for them? DOBBS: I'm sorry. What did you say?

RAMOS: You cannot create concentration camps for them, you cannot send them back to their country of origin. They pay taxes. They are a benefit of society. We are all taking advantage of their work. So the issue, the core issue is not only the guest worker program or the security concerns but the core issue ...

DOBBS: I'm going to answer you and am going to completely answer this. You just made a reference to a concentration camp which is certainly -- it's beneath you. Certainly -- that's a disgusting disparaging remark, Jorge. I expect far better from you.

RAMOS: What are you going to do with them?

DOBBS: Number, two, the issue is security in this country. Three million illegal aliens crossed our border and will continue to do so if we cannot control our borders. And nothing that this president has done, nor any president before him, in point of fact, over the last 20 years has done is assure border security. Not operational security. But true security of our borders.

Secondly, until we put that in place this entire nation is at risk. We don't have 11 million illegal aliens in this country, Jorge, Wolf. We have 20 million illegal aliens in this country. Meanwhile, while people are trying to say this is a racial issue because Hispanic activists and corporate America's activists who want open borders so they can continue to exploit cheap labor are miscasting the entire discussion.

The fact is this nation should be in charge of its immigration policy. There are 5.5 billion people who have greater poverty, who endure far worse living conditions than the country of Mexico. Vicente Fox should not be in charge. The United States government and those officials we've elected, whether they're in the White House or in Congress, should be in charge of a rational immigration policy.

BLITZER: Jorge, go ahead and respond. And Jorge, Lou makes a good point. You can't throw around phrases like concentration camps without fully appreciating the meaning of what you're talking about because that has some specific historic context, which I'm sure you don't want to address right now.

RAMOS: No. Absolutely. And I don't think it's a racial issue. I think what's important - and we have to deal - and that's a core issue. We have to deal with 11 million undocumented immigrants living in this country on the one hand and on the other we have to take into consideration every single minute one immigrant crosses the border from Mexico to the United States. And that has to be addressed.

I mean, these immigrants are coming simply for economic reasons. As long as they are making $5 a day in their country of origin and can make exactly the same amount of money in just a few minutes they are going to keep on coming. So even those who are proposing a wall between Mexico and the United States - if you even want to build (inaudible) to have immigrants (inaudible) to build it. BLITZER: Let me bring Lou in for a second. What do you say to the president who says, you know what? Our economy need these workers, these millions of workers because American citizens, by and large, don't want to do these jobs that these illegal immigrants want to do?

DOBBS: Wolf, I'm so sick of hearing what Americans don't want to do. First, what most Americans don't want to do, nearly all Americans don't want to do, is work for exploitive wages nor should anybody be asked to work for exploitive wages as is happening with illegal aliens. If we need a workforce than by God let's create a rational immigration policy in which this country makes a conscious, reasonable, rational decision and reaches out to the world and says these are the talents we need, whether it is in terms of manual laborer, whether it's in terms of engineering or whether it is in terms of research, whatever. But let's do it intelligently, rationally and represent the national interest and our middle class.

The Pew Research, by the way, on this issue as these millions of illegal aliens cross the borders, the people they're displacing from jobs first are Hispanic workers in the lower paying jobs in this country already. Again, just more victims.

BLITZER: Jorge?

RAMOS: Immigrants are needed in this country. We all know that immigrants are needed in this country. And something has to be done about it. And we have to deal with this issue and dealing with reality, not only with what many people might perceive as an anti- immigrant feeling all over the country after 9/11.

BLITZER: And one final word from you, Lou. When the president, when the president says he's opposed to amnesty, you don't believe him, do you?

DOBBS: Since you put it straightforwardly, let me answer you straightforwardly. No. I don't believe him and I didn't hear a specific, substantive solution offered by this president. And I think that's a shame. Because every survey, tonight we asked our audience if they believed that the president put forward a reasonable, specific substantive proposal today. Ninety-eight percent of them said they did not believe so. That's tragic.

BLITZER: We have to leave it there, gentlemen. Thanks very much, Jorge Ramos and Lou Dobbs. We'll continue this debate down the road.

DOBBS: Thank you very much.

BLITZER: Appreciate it very much.

Still to come here in THE SITUATION ROOM, Hurricane Katrina. Three months later, Anderson Cooper is live on the scene in New Orleans. We'll go there.

Plus -- what some call the most dangerous road in the world. It leads to and from Baghdad's airport. We'll speak to one United States congressman who was just injured there. He's just been flown back to Washington. He's standing by here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Time now for a look around the world. The scene of many bombings and shootings, Baghdad's Airport Road is considered one of the most dangerous routes in a very dangerous place. Three United States congressmen had their own close call on that road over the weekend. This one appears to have be an accident.

Joining us now is Pennsylvania Republican Congressman Tim Murphy. Congressman, thanks very much for joining us. I know you just got off a plane. I see your face is cut up. Tell our viewers what happened on this road from the Baghdad Airport to the -- to Baghdad. You and these other two congressman.

REP. TIM MURPHY, (R) PA: Myself, Congressman Ike Skelton of Missouri and Congressman Jim Marshall of Georgia were traveling back. We had met with troops in Baghdad and we just met with General Casey, on the road in a convoy in an armored bus. And apparently some other vehicle was coming towards us in a situation like this. The army likes to say they have the road. And apparently -- I'm not sure the details. We couldn't really see. Our vehicle was run off the road, hit something, took a jump and landed on its side. And that's when all of us were thrown against the steel plating inside the vehicle and I took the worst of it there but we're fine.

BLITZER: So tell us what happened to you in terms of your injury.

MURPHY: What happened then is there was concern that I had a neck injury. So the -- I was taken out of the vehicle and laid out and immobilized with that. It was incredible how quickly and how professional the army worked their medics, transported us by helicopter to a hospital in Baghdad. And then because they were concerned I had more serious injuries, transferred me with a lot of other soldiers who were wounded soldiers off to Germany.

BLITZER: On a military transport plane?

MURPHY: Yes. A C-17. Basically it is turned into a flying intensive care unit. And it's just incredible the care they give the soldiers. You can see why so many do survive.

BLITZER: Congressman Ike Skelton is a veteran member of the House of Representatives. He was injured and taken to that hospital in Germany as well.

MURPHY: Yes. He got there too. There's a little concern. He is doing well now.

BLITZER: What happened to him?

MURPHY: They were concerned about a couple things. I'll let Ike tell you the story but he is recovering well. BLITZER: And the third congressman was OK?

MURPHY: He's fine. Jim Marshall is fine.

BLITZER: So what lesson did you learn from this? I was under the impression that dignitaries, VIPs don't take that road from the airport to Baghdad, they usually fly over in helicopters. What were you thinking?

MURPHY: This was a different road than that road we took. These were narrow roads in some cases. This isn't a bigger highway. The concern is the military was concerned in any situation they want to be prepared, make sure there's no ambush, there is no other problems there. They swiftly moved into action. Quite professional in the whole thing.

BLITZER: Did you come back from Iraq on this trip convinced that what the U.S. is doing is the right thing or, like your Democratic colleague from Pennsylvania, John Murtha, convinced the U.S. is on the wrong track?

MURPHY: From talking to folks like the generals in charge, the Iraqi security forces I believe we're doing the right thing. We can't set this up as a timetable, an artificial timetable. It must be based upon certain criteria. What the Iraqi security force was saying, let us establish that we're taking over. They showed us in very detail what they're taking over in maps around Baghdad, around Iraq, they're securing that. As we do that, we pull back. The election is in a couple weeks. They want to rule their own country and would like us to assist in that but they want us to then pull back then.

BLITZER: Representative Tim Murphy. We're happy you're back in one piece. Could have been a lot worse. Thanks for joining us here in THE SITUATION ROOM. Good luck to you.

MURPHY: Thank you.

BLITZER: And just ahead -- he's a prisoner on trial for his life. But you wouldn't know it from his demeanor in the courtroom today. We'll show you what happened in the trial of Saddam Hussein.

Plus -- this city thrives on visitors. But no one wants these guys here. We'll sew you what top tourist destination is in the midst of a bed bug infestation. Eww.

(COMMERCIAL BREAK)

BLITZER: Welcome back. President Bush addressing a fund raiser out in Arizona for Republican Senator John Kyl, a very different kind of speech from the Canadian Prime Minister Paul Martin. He's addressing the people of Canada. His government has just fallen in the parliament new elections now scheduled, we believe, for January in Canada. We're watching both of these stories.

These are pictures coming into THE SITUATION ROOM. Also, other stories we're following. For decades, he ruled Iraq with an iron fist. Now, he's on trial for his life, but he's behaving like he's still the boss in Baghdad.

Saddam Hussein's trial resumed and then adjourned once again today in between quite a display of fireworks. Let's go to our senior international correspondent Nic Robertson. He was in the courtroom, he's joining us live. Nic?

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): An empty chair where Saddam Hussein should be. Everyone kept waiting. He was more than six minutes late. On the courtroom videotape, the next shot shows Hussein in his chair, but I was there, and what I saw tells a story.

I saw Hussein stroll in, looking relaxed, ambling toward the dock smiling at his co-defendants. At first, no hint of the anger he would soon unleash on the judge. Fifteen minutes later, venomously blasting the chief judge, making clear this was going to be his day in court.

Hussein complained about a broken elevator. The judge replied, he'd ask the guards to look at it.

SADDAM HUSSEIN, DEFENDANT (through translator): Chief judge, I don't want you to call them. I want you to order them.

ROBERTSON: A verbal bashing, implying the chief judge cow towed the American invaders. Minutes later, the boot was on the other foot. The judge showing videos of Hussein ordering an investigation right after the 1982 assassination attempt in the village of Dujayl. That assassination attempt was followed by a murderous repression in the Dujayl area.

That's the first of the crimes on which Hussein is being tried. Hussein seemed unmoved. His new international adviser, former U.S. attorney general Ramsey Clark, kept a low profile. But he says he's worried the trial is not fair.

RAMSEY CLARK, FORMER U.S. ATTORNEY GENERAL: I've been in many unpopular cases where there's been high community prejudice against the defendant. But here, it's just everybody has been hurt. And everybody's angry.

ROBERTSON: Hussein had showed his anger, too, but I saw him smile as the judge called a break for lunch, and told the defendants they could talk to their lawyers.

An hour and 20 minutes later, it was Hussein's allies on the attack. Hussein's former vice president stood to announce he would not work with the court-appointed lawyers. Hussein's half brother and former chief justice also left their seats to voice complaints. And then Hussein on his feet again.

HUSSEIN (through translator): What's the memo? About what? What was the moment? Do you have a formal request about it? Two memos? Yes, 25 pages. ROBERTSON: This time quizzing the judge about letters he claimed to have sent him, letters the judge claimed not to have received. The judge ending proceedings, calling for a seven-day adjournment.

(END VIDEOTAPE)

(on camera): Well, the trial is proving far more easy to interrupt and delay than most Iraqis would like. And for Saddam Hussein, it's giving him the opportunity to steal the limelight and cast himself as the prime leader of Iraq. Wolf?

BLITZER: Nic Robertson on the scene for us in Baghdad. Good work, Nic. Thank you very much.

Let's get some more now on the trial of Saddam Hussein. There was a stunning display of anger as we just heard from Nic by the former dictator. I spoke earlier with today with Sabah al-Mukhtar, who's an Iraqi, he's the president of the League of Arab Lawyers in London.

Also joining us here in Washington Marc Vlasic who helped prosecute former Yugoslav leader Slobodan Milosevic and helped train the Iraqi tribunal for the Saddam Hussein trial.

Sabah al-Mukhtar, Mark Vlasic, thanks to both of you for joining us. Sabah, let me begin with you.

Can Saddam Hussein get a fair trial in Baghdad?

SABAH AL-MUKHTAR, PRESIDENT, LEAGUE OF ARAB LAWYERS: Of course, not. All the requirements for a fair trial are absent. In the first instance, the legitimacy of the court is questionable. The legitimacy of the judges are questionable. The procedures which has been followed, it's contrary to all the norms of anywhere in the world.

This accused person has not even received his indictment sheet. He doesn't know what he's charged with. Obviously everybody knows where he is being tried for in Dujayl. But he doesn't know what, where, and when.

Compare this situation with the inquiry which is being taken place in the U.S. about Libby. You can see 22 pages of indictment sheets. Saddam Hussein and his lawyers have not seen that. We're told that there are tons of documents and there are thousands, millions of pages. Nobody has seen that one. A trial which is being carried out in a state of war.

BLITZER: What about that Mark Vlasic? Can Saddam Hussein get a fair trial in Baghdad?

MARK VLASIC, FORMER WAR CRIMES PROSECUTOR: I believe so. We have to realize that in terms of the legitimacy, the security council's recognized the fact that Iraq is a sovereign country. And the elected assembly of Iraq has affirmed the fact that this trial will take place at the Iraqi tribunal.

With respect to the rules, procedure, and the rules set up for this tribunal, it's a blend of Iraqi law, and also it includes international crimes, which are modeled after the statutes and the rules and procedure from tribunals, such as the one for Yugoslavia, which is where I worked.

(END VIDEOTAPE)

BLITZER: CNN next week when this trial resumes, at least the schedule of this trial resumes in Baghdad.

Up next. It's hard to sleep tight when the bed bugs bite. New Yorkers are finding this out firsthand. Details of the city's exploding infestation. Mary Snow investigating.

And another reporter poised to testify in the CIA leak investigation. Why her answers may turn up the heat on the president's top adviser, Karl Rove, and perhaps other reporters as well. Stay with us.

(COMMERCIAL BREAK)

BLITZER: A couple of milestones in New Orleans marking some small steps toward recovery from Hurricane Katrina.

The city is getting a new police chief. Warren Riley is being sworn in tonight by Mayor Ray Nagin. He replaces former chief Eddie Compass, who resigned in September amid reports of desertions and looting by officers during the chaos that followed the hurricane.

Also today the first reopening of a public school in the city, Benjamin Franklin Elementary School. It can hold 500 students. Only 210 were pre-registered. Of them only about 120 showed up. But it is a start.

CNN's Anderson Cooper is in New Orleans tonight marking the third three-month anniversary of this disaster.

What's it like right now, Anderson?

ANDERSON COOPER, CNN ANCHOR: You know, it's surprising how little here has changed. I mean, yes. some parts, the French Quarter, are open for business. But you go out of the Lower Ninth Ward, you go to Lakeview sections, and it is just completely decimated.

Still to this day people's possessions laying all around. And there is a lot of anger here, Wolf, over the slow pace of reconstruction.

Tonight on "360" at 10:00 eastern time we're going to take you here to New Orleans show you why people are so angry about the slow pace of reconstruction. And many of them say they have simply been forgotten. We'll also update you on all those animals, the dogs and cats, the thousands of them that were once roaming the streets. You might be surprised to find out what's happened to them, and also to learn how many are still out there on the streets waiting for help. That's going to be at 10:00 eastern time--Wolf.

BLITZER: But among the people you're spending some time with, the New Orleans residents who are there, are they upbeat, are they pessimistic, are they happy, are they sad? What's their mood based on your initial impressions coming back after a prolonged stay in New York?

COOPER: You know, I think they're still sort of dazed and confused and frustrated and angry, really. I mean, you just talked about a school reopening. But there are very few kids here in the city. Life as anyone, you know, knows it is simply non-existent in this city.

And there's also frustration when people on TV see what's happening in the French Quarter, and they see people drinking on Bourbon Street. And while that's great for the city, it's good economically, it doesn't paint a real picture of what's happening here.

Tonight at 10:00 we're really going to take you to the areas people don't normally see where there is no electricity, and we'll show you what life is like for many people here and how so little has changed in some parts of this city.

BLITZER: Anderson Cooper "360" airs 10:00 p.m. eastern, 10 until midnight.

Anderson, thanks very much. We'll be watching.

From the toniest townhouses to the most humble hovels, New York City is being invaded by bed bugs.

Let's bring in CNN's Mary Snow. She's joining now with--what's going on, Mary? This sounds disgusting.

MARY SNOW, CNN CORRESPONDENT: It really is, Wolf. And, you know, bed bugs had all but disappeared for decades, and now they're spreading and making even hard New Yorkers squirm.

(BEGIN VIDEOTAPE)

SNOW (voice over): At Pest Away Exterminating in New York, enemy number one these days, bed bugs.

JEFFREY EISENBERG, PEST AWAY EXTERMINATING: Eight years ago we might have gotten 30 bed bugs call a year. Today we get probably 8,000 to 10,000.

SNOW: Many of those calls he says come from posh hotels and prestigious New York addresses dispelling the myth that bed bugs only reside in filth. Bed bugs feed on people's blood and bite people when they're in bed, hence the name. Since they only come out at night, they're hard to detect often to peoples disbelief.

EISENBERG: We'll show them by cutting open the mattress and seeing thousands of them living deep in the mattress.

SNOW: Jeffrey Eisenberg has shed his old nickname the rat catcher.

EISENBERG: Now it's, you know, the bed bug guy. And it is parts psychiatry and part your pest control.

SNOW: Part psychiatry Eisenberg says because it is not a problem people want to share with anyone but the exterminator. He says he is often asked not to wear his uniform and hide his identity so neighbors won't find out.

A victim who showed us her bed bug bites, but didn't want to be identified says it cost her $4,000 to eliminate the pests.

UNIDENTIFIED FEMALE: I think there is a lot of concern that you're going to spread it to other people.

SNOW: In looking at the numbers the problem is multiplied. The city's housing agency says three years ago it counted just two complaints of bed bugs. In the last four months alone the number was 450. Doctors cite a number of reasons including bans on potent pesticides such as DDT.

PHILIP TIERNO, MICROBIOLOGIST: We've eliminated most of the pesticides that are useful against bed bugs. We have increased our travel in multiple ways.

SNOW: Experts say recycled mattresses are another way the bugs are spreading. And while doctors say the bugs don't pose any serious health risks for anyone who is familiar with the childhood nursery rhyme, having bed bugs can make sleeping a real nightmare.

(END VIDEOTAPE)

SNOW: And making things worse, experts say the products that are used to kill bed bugs can be toxic and dangerous, and it can take more than one attempt to finally get rid of them-- Wolf.

BLITZER: What a story, Mary. Thank you very much for sharing it with us.

Let's get some more on this story. Are there bed bugs in your bed? The answer may be online.

Let's bring in Jacki Schechner, our Internet reporter, she's got some more.

JACKI SCHECHNER, INTERNET REPORTER: Well, I can't tell you if you have them. But I can tell you what they look like. You saw a little bit in Mary's package. If you want to take a closer look yourself you can go online to University of Kentucky Entomology Department.

That's what the bed bug look like. That's an adult right there. You can see in comparative size. Now, what you are looking at here is a recessed screw underneath a nightstand to give you an idea of comparison. That's a tiny little bed bug up there in the corner.

Now, this is on a humans hand. You can see what that looks like an adult male. The bug man he calls himself.

We actually even found a blog online called The Bed Bug Blogs. This is a woman in Manhattan, who is suffering with these, and she is writing all about her experiences online.

We found a web site as far away as Australia, a medical center that is showing the resurgence in Australia, down under. And I will tell you, Wolf, the reason why you need to be concerned with this is because these guys can get into your suitcase, and they can travel with you.

So no matter where you go, they are resilient, and they will possibly hitch hike home. So you have to be very careful and look out for that.

BLITZER: Who would thought, Jacki, thank you very much. Information you need to know right here in THE SITUATION ROOM.

Up next, a new chapter in the CIA leak investigation and why it is spotting the spotlight on President Bush's top political adviser. That would be Karl Rove.

And an important story for homeowners. We'll show you new numbers just out that could help determine what your home is worth. You are in THE SITUATION ROOM.

(COMMERCIAL BREAK) BLITZER: In the CIA leak case, the heat once again is on the Presidential Adviser Karl Rove. Now that a second "Time Magazine" reporter is set to cooperate with the special prosecutor.

"The Times" spokesman says Vivaca Novak will give a sworn deposition sometime next week.

(BEGIN VIDEOTAPE)

BLITZER (voice over): Viveca Novak is different from the other journalists who have testified in the CIA leak investigation. She's not being asked to reveal under oath a conversation with an administration official.

She's being asked to testify about a discussion with Karl Rove's lawyer, Robert Luskin. It happened nearly a year after Valerie Plame-Wilson's identity as a CIA operative was publicly revealed in an article by columnist Bob Novak, no relation to Viveca.

Other reporter source conversations probed by Special Counsel Patrick Fitzgerald took place before Plame was outed, involving "Time Magazine's" Matt Cooper and Karl Rove, "The New York Time's" Judith Miller and former Cheney Chief of Staff Lewis "Scooter" Libby, "The Washington Post" Bob Woodward and his mystery source, disclosed under oath but not revealed publicly.

It is not clear if Woodward's recently revealed connection to the case led Fitzgerald to Viveca Novak.

(END VIDEOTAPE)

BLITZER: But this much does seem clear after Scooter Libby's indictment, the prosecutor, Patrick Fitzgerald, said Rove still was under investigation, and now with a second grand jury being called Rove still could be squarely in Fitzgerald's sights.

We're watching this story, and we'll get more for you on it.

Let's find out what's coming up right at the top of the hour. Paula Zahn standing by.

Hi, Paula.

PAULA ZAHN, CNN ANCHOR: Hi, Wolf. Thanks so much.

Well, we're going to behind the scenes today of a big story in Iraq while Saddam Hussein was blustering and trying to bully the judge today one of the lawyers on his team sitting right behind him was an American.

Ramsey Clark is a former U.S. attorney general, and now some people are actually calling him a traitor. Why is an American defending Saddam Hussein and should he be? We'll be debating that at the top of the hour--Wolf.

BLITZER: All right thanks very much, Paula. We'll be watching.

Let's go to the CNN Center in Atlanta once again. Betty Nguyen standing by with some business news making headlines-- Betty.

BETTY NGUYEN: A lot of business news, in fact, Wolf.

The Bush administration says China is not manipulating its currency for economic gain. Although President Bush, himself, raised the issue during his trip to China this month.

Critics accuse Beijing of undervaluing its currency, fueling a trade deficit with the United States expected to reach $200 billion this year.

In a regular report to Congress, the Bush administration says China must allow greater revaluation of its currency.

Speaking of money, another sign the red hot real estate market is cooling off. Sales of existing homes fell almost 3 percent in October. That's lower than expected.

And analysts say the decline would have been even sharper if not for home-buying spree by victims of Hurricane Katrina, who are now permanently relocating.

And the declining home sales helped push stocks down on Wall Street. The Dow, the Nasdaq and the S&P 500 all lost ground ending a seven-session winning streak. A lot of selling on Wall Street today--Wolf.

BLITZER: All right, they buy, they sell. That's what happens. The markets go up and then they go down.

Betty, thank you very much.

Still ahead, another "Time Magazine" reporter being called on to share what she knows about the CIA leak case. What will that mean for Karl Rove?

Jack Cafferty has been going through your e-mail. He's standing by in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's go right back to New York.

Jack Cafferty standing by.

No bed bugs where you are, right, Jack?

JACK CAFFERTY, CNN CORRESPONDENT: Not as I've noticed lately.

Patrick Fitzgerald, Wolf, the special prosecutor in the CIA leak case has asked a second "Time Magazine" reporter for a deposition. Viveca Novak, no relation to Robert Novak, will testify about her conversations with Karl Rove's lawyer.

So the question is what is the latest in the CIA leak case mean for Karl Rove.

Matthew in Bridgewater, Nova Scotia writes, what does all this mean for Rove? Nothing. Rove's name, unfortunately, just ends up getting lost in the shuffle. The more complex this thing gets, the more the public will lose interest in it.

Skip in Naples writes, Karl Rove was involved with this whole mess and should resign so Bush could go back to being the president again. I would like to have a president who is doing his job, and not just trying to keep his friends on the job.

Kevin writes, Jack, it means nothing. Don't look now. Your bias is showing.

V writes, Rove is finally being unveiled and it's not pretty. The American people are seeing the ugly manipulation between the White House and the press out in the open. He had a good run. Now it's time for both Rove and the press to pay the piper.

Mike in Keokuk, Iowa, Karl Rove will be charged and convicted, and then he'll be pardoned. He'll end up writing a book and retiring even wealthier than he is now. That's how government scandals work.

And finally, Covell in Balston Lake, New York, hey that background music/theme on THE SITUATION ROOM is too ominous and creepy. Can you lose it? It scares me and my loser friends.

BLITZER: People are obsessed with the music on this program. You know, you would think that they would be obsessed with the editorial product, right?

CAFFERTY: No, they like the big screen and the music. You know, we have got a video game with some happening sound. Actually, the music is terrible, but I like the videos.

BLITZER: Let's listen here it is.

You hear that beat it's easy to dance to.

It's a good beat.

CAFFERTY: Are you a good dancer?

BLITZER: No.

CAFFERTY: Did you dance of Thanksgiving.

BLITZER: I did not, but I ate turkey.

Jack, see you tomorrow. Thanks very much.

To our viewers don't forget we're in THE SITUATION ROOM weekdays 4:00 to 6:00 p.m. eastern as well as 7:00 to 8:00 p.m. eastern. Until tomorrow thanks very much for joining us.

I'm Wolf Blitzer. Let's head back to New York.

CNN's Paula Zahn ready to take over.

Hi, Paula.

ZAHN: Hey, Wolf. For the record your music is right on my top 10 list. Not. He just went away. He disappeared. Where are you Wolf?

Good evening, everyone. Thanks so much for being with us.

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