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The Situation Room

Bush Provides Details of Foiled Terror Plot; Senate Hearings Investigate Katrina Response; Jill Carroll Tape Released; Jack Abramoff May Have Been Closer To White House Than Previously Thought; More Words Between Hillary Clinton And Republican Party; Patriot Act Compromise Reached; Favorites For Presidential Election

Aired February 09, 2006 - 16:00   ET

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

WOLF BLITZER, CNN ANCHOR: To our viewers, you're in THE SITUATION ROOM, where new pictures and information from around the world are arriving all the time.
Happening now, it's 1:00 p.m. in Los Angeles. Shoe bombs, a hijacked airliner, and a murderous collision with one of the America's tallest buildings. President Bush gives new details on a foiled terror plot, but why now?

It's 4:00 p.m. here in Washington. The former FEMA director has taken a lot of heat for the Hurricane Katrina failures, but others may now be sweating, wondering what he'll tell a Senate committee.

And it's midnight in Baghdad. A hostaged American journalist appearing in a new video, saying time is running out to meet her kidnapper's demands.

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

We begin with our CNN "Security Watch" and eerie echoes of 9/11. This plan also involved al Qaeda hijackers and a conspiracy to crash an airliners. But the attack was to be aimed at a tallest building on the West Coast. Last October, President Bush mentioned the foiled plot. Today he gave details.

Let's go live to our White House correspondent Dana Bash -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, I can tell you some Democrats are suspicious about the timing of this speech, the fact that the president reached back four years to give some new details about a thwarted terror plot. But the White House insists that this speech has been in the works for a month, and it is simply the latest in their effort to illustrate the fact that there hasn't been an attack since 9/11 is no accident.

(BEGIN VIDEOTAPE)

BASH (voice-over): This Los Angeles skyscraper, the president disclosed, was the target of a planned al Qaeda follow-up to the 9/11 attacks that was foiled in 2002.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... hijack an airplane using shoe bombs to breach the cockpit door, and fly the plane into the tallest building on the West Coast.

BASH: Mr. Bush offered newly declassified details of an alleged plot. the White House first confirmed in general terms four months ago. The vivid new description is part of a Bush effort to justify controversial tactics in fighting terror.

The president revealed that 9/11 mastermind Khalid Shaikh Mohammad recruited southeast Asian men to diminish suspicion, and tapped Hambali, leader of an al Qaeda affiliate, to lead and recruit others training in Afghanistan.

G. BUSH: They met with Osama bin Laden and then began preparations for the West Coast attack.

BASH: Mr. Bush said an arrest by an unnamed South Asian ally, followed by interrogations, led to information used to disrupt the plot. Bush officials refused to say whether the domestic surveillance program helped their investigation and emphatically deny this speech has anything to do with the controversy over secret spying.

So why reveal details now? The White House says it wanted to highlight successful cooperation from allies and the need for instantaneous information gathering and sharing. That's the same argument Bush officials made to support the controversial surveillance program. So is this.

G. BUSH: We can not let the fact that America hasn't been attacked in four and half years, since September 11th, lull us into an illusion that the threats to our nation have disappeared.

BASH: Some Democrats suggest Mr. Bush is using new details and fresh talk of the threat to raise his political standing and win public support for strong presidential powers.

P.J. CROWLEY, CENTER FOR AMERICAN PROGRESS: It is their play book. You know, whenever they sense they're losing control, they go back to the war on terror. And clearly, they've made a conscious decision today to talk about the past, not about the present.

(END VIDEOTAPE)

BASH: Now California Democrat Senator Dianne Feinstein said today that she has never seen information that this plot was really bonafide. She sits on the Senate Intelligence Committee. And also, Wolf, the Los Angeles mayor, Democrat Antonio Villaraigosa, he told the Associated Press today that he never got a heads up from the White House about this announcement today. He was caught totally by surprise. Saying that even as the White House was talking about information sharing, they didn't share this with him -- Wolf.

BLITZER: All right, Dana. Thank you very much. Dana Bash reporting from the White House.

By the way, the building in Los Angeles is a 72-story tower. It's known as the Library Tower, at least until two years ago. It's the tallest building west of the Mississippi, and one of the 25 tallest buildings in the world.

Elsewhere here in Washington, the Senate Intelligence Committee met in secret today, hoping to learn more about the Bush administration's domestic spying program. Some were disappointed by what they heard. Let's turn to our national security correspondent, David Ensor -- David.

DAVID ENSOR, CNN NAT'L SECURITY CORRESPONDENT: Wolf, it was more information than they had, but too little to quell the furor.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): Attorney General Gonzales and the key intelligence officer, General Michael Hayden, briefed the Senate Intelligence Committee behind closed doors, revealing some details of the surveillance program, but not enough to satisfy critics.

SEN. CARL LEVIN (D), INTELLIGENCE COMMITTEE: And it's like pulling teeth to get the few tidbits of information that we did get.

SEN. JAY ROCKEFELLER (D), INTELLIGENCE VICE CHMN.: Most of the questions that were asked were, in fact, not answered.

ENSOR: The additional briefing came after Republicans like Representative Heather Wilson and Senator Mike DeWine broke with the administration and said the two full intelligence committees need the full story.

SEN. MIKE DEWINE (R), INTELLIGENCE COMMITTEE: What is need is oversight by the two proper committees. That's what these committees do.

ENSOR: The Senate Judiciary Committee chairman said he will propose a law to make the White House submit the program to the secretive Foreign Intelligence Surveillance Court to decide whether it's legal now, or whether a new law is needed.

SEN. ARLEN SPECTER (R), JUDICIARY CHAIRMAN: The administration ought to submit this program to the Foreign Intelligence Surveillance Court. They have the expertise and they are trustworthy.

ENSOR: "The Washington Post" reported that the head of that FISA court, Judge Colleen Kollar-Kotelly, was infuriated when told by a senator Justice Department official that information from the eavesdropping program may have been improperly used before her court to obtain wiretap warrants. Court officials declined comment to CNN.

While legislators are pressing for details, administration officials say Vice President Cheney has been forcefully resisting, saying he fears leaks from Capitol Hill.

SCOTT MCCLELLAN, WHITE HOUSE SPOKESMAN: And you heard last week from some of our top intelligence officials talk about how its disclosure is harmful to our national security efforts.

(END VIDEOTAPE) ENSOR: Democrats complained the most forcefully, but the outcome here probably depends on Republicans on Capitol Hill. The majority party appears split on whether to force the president to accept changes in the law or to insist that he brief more in Congress on just whose phones are being tapped -- Wolf.

BLITZER: David Ensor reporting. Thank you, David, very much.

And to our viewers, please stay tuned to CNN day and night for the most reliable news about your security.

He took the fall for the federal government's failures when Hurricane Katrina hit. Now the former FEMA director Michael Brown is preparing to talk to a Senate panel investigating the disaster. The Bush administration may be a bit nervous about that testimony.

Let's bring in our homeland security correspondent Jeanne Meserve -- Jeanne.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Wolf, the White House says it is working on a response to a letter from Michael Brown's attorney. Brown, the former head of FEMA, has until now refused to answer questions from congressional investigators about his communications during Katrina with top White House officials. The White House asked him and other government officials to keep quiet about those, officials said to protect the confidentiality of presidential decision-making.

But Brown is no longer a government employee and will be put under oath tomorrow by the Senate committee probing the Katrina response. Saying his client is between a rock and a hard place, Brown's lawyer wrote the White House saying unless the White House directs Brown not to answer certain questions, and assures him of legal defense if he refuses to testify, Brown will answer all the questions posed by the committee.

We'll have to wait and see how the White House responds to that and whether it satisfies Mr. Brown -- Wolf.

BLITZER: All right, Jeanne, thank you very much. Jeanne Meserve reporting.

Let's go to our Internet reporter Abbi Tatton now. She's been following Michael Brown's digital trail online. What are you picking up?

ABBI TATTON, CNN INTERNET REPORTER: Wolf, we've got a copy of that letter from Michael Brown's letter -- from Michael Brown's lawyers, rather, to the White House. We're putting it up online in the next few minutes at CNN.com/situationreport. You will be able to see it there.

Now, it's not the first time that e-mails to and from the former FEMA director have been released online. You can find them, a set of e-mails, about 1,000 of them, that were released back in October. A sampling of them also at CNN.com. You remember that some of those were a little bit embarrassing for Michael Brown. On the day that Hurricane Katrina struck, you could see him referring to himself as a fashion god. Later on that week, he was talking about how he regretted not quitting earlier. And saying please rescue me. Michael Brown is testifying before the Senate committee investigating Hurricane Katrina tomorrow -- Wolf.

BLITZER: All right, Abbi. Thank you very much.

That Senate panel investigating the hurricane response today heard from the U.S. army officer who took charge of the Katrina relief effort. Lieutenant General Russel Honore warned that the next hurricane season is only 111 days away, and the nation must use that time to get ready.

Meantime, some key Senate Democrats seized the chance to meet with Katrina survivors at a Capitol Hill rally. Democratic Senator Harry Reid told the evacuees that six months after the storm, the situation remains, in his words, "shameful." He says President Bush, and I'm quoting now, "didn't do everything he could to protect our cities."

Other news we're following, important news unfolding right now. The kidnappers of an American journalist have just released a new videotape. On the tape, Jill Carroll, a freelance writer on assignment for the "Christian Science Monitor" urges her kidnappers' demands be met.

Let's go to Baghdad. CNN's Aneesh Raman is standing by and he's got the latest. Aneesh, update our viewers on what is happening on this heart-wrenching story.

ANEESH RAMAN, CNN CORRESPONDENT: Wolf, this tape airing in just the past few hours on a Kuwaiti-based Arab network called AlRai. They say the tape was dropped off to their Baghdad office just hours before it saw air. In it, Jill Carroll speaks in English and speaks of her very critical situation.

(BEGIN VIDEO CLIP)

JILL CARROLL, KIDNAPPED AMERICAN JOURNALIST: Today is Thursday, February 6th -- February 2nd, 2006. I'm with the mujahedeen. I sent you a letter written by my hand. But you wanted more evidence, so we're sending you this letter now to prove I am with mujahedeen. I'm here, I'm fine. Please just do whatever they want. Give them whatever they want as quickly as possible. There is very short time. Please do it fast. That's all.

(END VIDEO CLIP)

RAMAN: Wolf, chilling words at the end, Jill Carroll saying that there is simply very short time left. In the previous tape, Jill Carroll was clearly distraught. She was sobbing throughout the previous two tapes aired on Arabic language station Al-Jazeera. They chose not to air the audio of Jill Carroll. But an anchor said Jill Carroll, again, called upon U.S. and Iraqi authorities to release all female Iraqi prisoners. That has been the consistent demand of the group holding her, Brigades of Vengeance, since she was abducted now over a month ago.

The first tape appeared on January 17th. That tape issued a 72 hour deadline. The deadline came and went. But again, Jill Carroll at the start of this tape dating it as February 2nd. If nothing else, it provides perhaps proof of life.

She describes a letter that has been sent to you, authorities on the ground, again, perhaps as a sign that she is still alive and being held. But very crucial words at the end there, Wolf, Jill Carroll saying a short time left. The demands have to be met -- Wolf.

BLITZER: What, if anything, Aneesh, should we make of the fact that this aired on a Kuwaiti television station as opposed to what earlier had been the other videotapes of Al-Jazeera, the Qatari-based television network?

RAMAN: It's interesting. It's the first time I can recall we've seen this network, which started in October 2004, a Kuwaiti-based network called AlRai, air a tape such as this. Again, they say the tape was dropped off along with a copy of the letter that Jill Carroll describes to their Baghdad office. They are based in Kuwait but they are seen throughout the Arab world.

Now, they aired it at the beginning of their broadcast for the past few hours. Al-Jazeera, of course, has been the network known for airing these hostage tapes of those who are being held by the insurgency here.

So it's tough to tell at the moment. It could be simply that they were chosen by the group holding Jill Carroll by virtue of the fact the tape was dropped off at their Baghdad office. But, again, it is interesting given that all the previous tapes aired on Al-Jazeera -- Wolf.

BLITZER: All right, we are going to continue to follow this story for our viewers. Aneesh, thank you very much. Aneesh Raman reporting from Baghdad.

Let's check in with Jack in New York. He has got "The Cafferty File." Every time I see those videotapes of these hostages, especially Jill Carroll, only 28 years old, a young woman who was doing outstanding work in Iraq trying to present this story in a fair and detailed way -- my heart sort of goes out and I'm sure yours does as well, Jack.

JACK CAFFERTY, CNN ANCHOR: Well you can't help but feel for her. However, I suppose there's reason to be optimistic on two fronts. We are not getting tapes out of that part of the world of people being beheaded anymore, at least not recently.

And the deadline for her execution has come and gone by quite a distance now. And she apparently, if this tape is to be believed, is still alive. So I guess while there's life, there's hope, Wolf.

Onto other things. "The ice is melting and we are making progress." That was the top Democrat on the House Intelligence Committee on getting information out of the White House about its domestic spying program. Suddenly the administration has changed course and has apparently decided to brief House and Senate intelligence committees on some of the highly classified details of the controversial program. But not very many, apparently.

And it didn't happen all by itself. Republican Senator Arlen Specter is threatening to draft legislation that would require the FISA court to supervise this surveillance. The argument has been made that that law already exists and is simply being ignored.

The chairwoman of the House Intelligence Subcommittee that oversees the NSA called for a full review of this program. And House Judiciary Chairman James Sensenbrenner sent a letter to the Attorney General Alberto Gonzales with 51 questions he wants answered by next month.

So here's the question. Why is the White House suddenly being more cooperative in the investigation of domestic eavesdropping? You can e-mail us your thoughts at caffertyfile@cnn.com, or you can go to cnn.com/caffertyfile.

Oh, one other note. Disgraced Congressman Tom DeLay, facing criminal indictment in Texas and forced to resign his House majority leadership position in the House of Representatives a few weeks ago, well guess what? Old Tom's now on the House Appropriations Committee. And the beat goes on.

BLITZER: That's the committee that spends -- that deals with all the money. It's a very important committee and probably the most desirable one for a member of the House to be on.

CAFFERTY: How do the Republicans do this stuff? I mean, don't they think anybody notices?

BLITZER: Let's get a question on this coming up, Jack, and you'll ask our viewers what they think about it. Jack, thank you.

CAFFERTY: No, I'm not going to do that.

BLITZER: Maybe you will. Thanks very much.

Coming up, the president's relationship with the former FEMA chief Michael Brown isn't his only relationship in question today. Is Mr. Bush closer to fallen lobbyist Jack Abramoff than the White House acknowledges?

Plus, Hillary Clinton fires back against Karl Rove. We are going to tell you what the political fight is all about.

And later, who do conservatives like in the next race for the White House? We asked them. We are going to tell you what they said. Stick around. You're in THE SITUATION ROOM. (COMMERCIAL BREAK)

BLITZER: Welcome back. To the president, he was the guy at the other end of a handshake, a smiling face and a gripping grin photo op. Mr. Bush has said he doesn't know Jack Abramoff, the lobbyist convicted last month on corruption charges. But do e-mail from Abramoff offer another perspective?

Our senior political correspondent Candy Crowley is following this story. She's joining us live. What are you picking up, Candy?

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, Wolf, you're right. The question has always been the president says he can't remember Jack Abramoff. But there are portions of some e-mails now surfacing where Abramoff seems to tell a different story.

"The guy saw me in almost a dozen settings," Abramoff wrote, "and joked with me about a bunch of things including details of my kids. Perhaps he has forgotten everything. Who knows."

The e-mail snippets first made public by the liberal American Progress Action Fund and confirmed by CNN, were sent to an Abramoff acquaintance who was also an editor at "Washingtonian" magazine.

Abramoff also says in the e-mails that he was invited to, but did not attend, a 2003 fundraiser in Crawford. Asked to describe the relationship, a source close to Abramoff said, "well, it's not like they were friends, but Jack was at the White House on a number of occasions." The White House won't bite.

(BEGIN VIDEO CLIP)

MCCLELLAN: I think what the president says still stands. Mr. Abramoff is someone who was involved in wrong doing. He acknowledged that himself. He is being brought to account. And there is an investigation going on by the Justice Department.

(END VIDEO CLIP)

CROWLEY: At this point, whether the president remembers Abramoff or how many pictures there are of the two of them together is more a P.R. problem than a legal one. A well-placed source says the ongoing Justice Department investigation is not looking at the president as anyone who did anything wrong with Jack Abramoff -- Wolf.

BLITZER: Candy, thank you very much. We're going to have you back 7:00 p.m. Eastern here in THE SITUATION ROOM for a full report on this. We'll also speak with that "Washingtonian" editor who got the e-mail -- Kim Eisler will be joining us as well.

Up next, a holy day for Muslims turns into a day of demonstrations against a cartoon that sparked two weeks of protests. We are going to tell you what the first lady says about the controversy.

Plus, the country's most famous anti-war protester makes a decision on whether she will run for U.S. Congress. We are going to tell you what Cindy Sheehan has now decided. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Fredricka Whitfield is filling in for Zain Verjee who's on assignment in New York this week. Fred is joining us from the CNN Center with a closer look at other stories making news. Hi, Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello to you, Wolf. On a holy day for the world's Shiite Muslims, a call for protests. In Lebanon, the leader of Hezbollah addressed some 300,000 marchers commemorating the Ashura holiday.

He said protests against cartoons depicting the Prophet Mohammed should continue until Denmark apologizes and the European Union reconsiders its laws on blasphemy. But he said the protests should be peaceful. First Lady Laura Bush discussed the cartoons before an audience with Pope Benedict XVI.

(BEGIN VIDEO CLIP)

LAURA BUSH, FIRST LADY OF THE UNITED STATES: I know that Muslims are offended with these cartoons. And I understand their offense. On the other hand, I don't think violence is the answer. I think that everyone around the world needs to speak out and say let's stop the violence. It's really not necessary to get the point across.

(END VIDEO CLIP)

WHITFIELD: Millions of Shiite Muslims took part in a shore of processions. They commemorate the death of the Imam Hussein, grandson of Mohammed. One of the largest demonstrations was in Karbala, Iraq, believed to be Imam Hussein's final resting place. We'll have much more on the cartoon controversy in our next hour, including a debate between former Education Secretary William Bennett and James Zogby, president of the Arab American Institute.

A man charged with killing his wife and baby daughter is fighting extradition to the United States. Neil Entwistle was arrested today at a London subway station. He allegedly fled to his native England after allegedly killing his wife and daughter in Massachusetts. Authorities say Entwistle was nearing financial ruin. They say he may originally have planned a murder suicide, Wolf.

BLITZER: Fred, thank you very much. We'll check back with you very soon.

Up next here in THE SITUATION ROOM, President Bush gives new details on an old terror plot that was foiled. But is there politics behind the announcement? That's in today's "Strategy Session."

Plus, U2 was the big winner last night. But there's a well-known member of the United States Congress who's also captured a trophy. We're going to tell you who it is and why. Stay with us.

(COMMERCIAL BREAK) BLITZER: Welcome back. Today in our "Strategy Session" President Bush comes out with specifics on a foiled terrorist plot. Will this help Republicans make the case that they know the answer to keep America safe? And will Democrats come up with an effective strategy to fight back?

Plus, is it time for the White House to hand over all the documents related to the lobbyist Jack Abramoff? Joining us now, former Democratic National Committee Chairman Terry McAuliffe and Terry Jeffrey, the editor of "Human Events." Thanks guys, very much. Here's a gist of what the president said in this speech today. Listen to this.

(BEGIN VIDEO CLIP)

G. BUSH: The terrorists are living under constant pressure. And this adds to our security. When terrorists spend their days working to avoid death or capture, it's harder for them to plan and execute new attacks on our country. By striking the terrorists where they live, we are protecting the American homeland.

(END VIDEO CLIP)

BLITZER: This strategy that the White House has, in showing that this war is continuing, and insisting the U.S. is winning. Is it an effective Republican strategy?

MCAULIFFE: Well, it's amazing. They come out and talk about this attack three years ago that was going to occur in the United States of America. And it comes out during this debate of wiretapping. It's always coincidental how these Republicans do their business as it relates to terrorism. Right after our Democratic convention, they raise the level again.

George Bush has a lot of questions out there that need answered. Where is Osama bin Laden? Just had a new video. He's got more videos than U2. We're less safe today. Why don't our troops have body armor? What are doing about North Korea? What are redoing about Iran today? Why are our borders less safe? All of these issues, we want answers from George Bush. We're tired of the same old rhetoric. He says nothing. He does nothing. We want answers.

BLITZER: Terry, you won't be surprised to hear that Senator Clinton from New York State made a similar comment. Listen to what she said.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), NEW YORK: I take a backseat to nobody when it comes to fighting terrorism and standing up for national and homeland security. But even there, we could have done a better job than we have done. You cannot -- you cannot explain to me why we have not captured or killed the tallest man in Afghanistan.

(END VIDEO CLIP) BLITZER: Osama bin Laden supposedly about 6'5". He's a tall guy. So what do you make of this strategy? The president going out with specifics today on this foiled terror plot, this tall building in Los Angeles. Without making any direct reference to the NSA surveillance issue, he comes out with these details. The subtext, if you will, is, "You got to trust me on this."

TERRY JEFFREY, EDITOR, HUMAN EVENTS ONLINE: Well, I mean, it's a good issue for President Bush, Wolf. But I think Hillary's going to have a very hard time making the case that she's going to get around to the right on President Bush on going after Osama bin Laden.

Back in 1998 in August, Osama bin Laden had declared war on the United States, attacked our embassies in Kenya and Tanzania killing 12 Americans, 300 Africans. President Clinton, at that time, responded by firing cruise missiles into Afghanistan.

The next day -- in fact, we checked. This was in "The New York Times" -- William Cohen, then the secretary of defense, said they weren't trying to kill bin Laden. Although at the same time, Cohen admitted that bin Laden had declared war on the United States.

So why was it that the Clinton administration admits al Qaeda had declared war against the United States, committed acts in war against us in 1998? All they did was lob a few cruise missiles.

BLITZER: Is this all about the NSA surveillance issue? Is that why the president is making these speeches right now? Is that the strategy?

JEFFREY: Well, there's certainly that part of it. I mean, they want to preserve that policy. They want to preserve the Patriot Act, which right now is only temporarily extended. I admit there's politics here. There's no question.

The Republicans not only believe that they are the better party at securing the nation against terrorism, they believe they can take that message to the November elections. They can win on that message. The country still doesn't trust the Democrats to keep the country safe from the likes of Osama bin Laden.

BLITZER: You've heard that a lot, Terry.

MCAULIFFE: My point once again is George Bush has made this nation less safe. We have today, as you know -- in Afghanistan and Iraq, we have the terrorist training camps back up and running. George Bush has not protected our borders. This is a debate we're willing to have.

George Bush, under his watch, as you know, 3,000 Americans were killed in the World Trade Center. It was George Bush, while he was on a five-week vacation in Texas in August of 2001, got a briefing that said," al Qaeda to attack the United States of America."

George Bush did nothing. He didn't even alert the FAA to be on alert. George Bush did nothing. It's all rhetoric. I'm tired of him up and down with the terror levels. He's done nothing to make this country safe.

JEFFREY: We can say this, Wolf. I don't think there's many Americans, if you had asked them on September 12th, 2001, whether we'd go another four years without an attack from al Qaeda, they would have said yes. It's been more than four years. We haven't had another attack. President Bush has been the commander-in-chief. He's done an excellent job, and every American ought to be grateful on that front.

BLITZER: If the subtext is the NSA debate, the debate over domestic surveillance, Chuck Hagel, Republican senator, member of the intelligence committee, quoted in "The Washington Post" today as saying, "Balance must be preserved between the executive branch and the legislature. And I think this is a clear example of where the balance has gotten skewed. The administration cannot unilaterally assume that they have the answers to get around or go over a law." That's a pretty tough statement.

JEFFREY: Yes. I would say if Senator Hagel wants to stop this program, what he ought to do is introduce a law, a bill in the United States Senate that says the president cannot intercept international communications in and out of the United States from al Qaeda. If Senator Hagel wants to do that, he should do that and see how many people he can get behind it.

BLITZER: I don't think he necessarily wants to do that. But I think he would like to do what a lot of senators, including Senator Specter and other Republicans would like to see, is some formal legislation codifying what the president unilaterally ordered.

JEFFREY: Well, Wolf, I think that would be a good idea. And I believe the main power of war, in fact, resides with Congress. But I believe the administration is right in that the president has an inherent power under the Constitution to protect the country against attack. And monitoring communications of al Qaeda in and out of the country is, in fact, part of protecting us.

BLITZER: Would you support -- a lot of Democrats, including Jane Harman -- she was in THE SITUATION ROOM the other day, the ranking Democrat on the Intelligence Committee in the House. They say, you know what, they don't have a problem with what the president is doing, but they just want a law that gives him clear authority to do that and have a process that everyone understands.

MCAULIFFE: We all want -- listen, everybody wants to keep Americans safe. I mean, it's a ridiculous argument these Republicans make. We all want Americans to be safe. We want some type of judicial oversight so George Bush can't go spy on ordinary Americans.

But breaking the law for these folks is nothing new. Just ask Scooter Libby. Just ask Tom DeLay. Just ask Jack Abramoff. Just go through this White House. And we just learned an hour ago -- "The National Journal" has just reported that Scooter Libby testified that Dick Cheney told him to release classified information to journalists.

Talk about not making America safe. They are outing CIA operatives. They're destroying covert operations around the world on the orders of the vice president of the United States of America. That's not keeping us safe.

(CROSSTALK)

JEFFREY: I just remind people that neither Mr. Libby nor Mr. Delay have been convicted of any crimes. People need to remember that, and we'll see where this goes.

BLITZER: They've been charged.

JEFFREY: They've been charged.

MCAULIFFE: You bet they've been charged. And a lot more to come in this investigation. Many more Republicans members...

BLITZER: Let's end this on a positive note. Big day for Terry McAuliffe, 49 years old. Happy birthday.

MCAULIFFE: You gave my age out. That's it. Well, thank you, Wolf.

(CROSSTALK)

BLITZER: New battles and a war of words between Hillary Clinton and the GOP. Details about what she's saying about the war on terror. We're going to have more on this story.

Plus, is there an agreement on the Hill over renewing the Patriot Act? We're going to have a live report. That's coming up. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There are new salvos in the war of words between Senator Clinton and the GOP. Monday, we showed you how the party leaders are calling the possible presidential candidate "angry." That would be Republican party leaders.

Last night, she fired right back, criticizing, among other things, the handling of the war on terror by the Bush administration. CNN's Mary Snow is in New York. She's covering this story for us.

Hi, Mary.

MARY SNOW, CNN CORRESPONDENT: Hi there, Wolf. Well, things heated up when Senator Hillary Clinton spoke at a labor convention. She talked about many topics, but what got the most attention was when she took aim directly at Republicans on their claim that Democrats are soft on security issues.

(BEGIN VIDEOTAPE)

CLINTON: I take a backseat to nobody when it comes to fighting terrorism and standing up for national and homeland security.

SNOW: That is a direct reference to White House political director Karl Rove, who told the Republican National Committee last month that the GOP will make the war on terror the issue to win elections.

KARL ROVE, DEPUTY WHITE HOUSE CHIEF OF STAFF: Republicans have a post-9/11 view of the world and Democrats have a pre-9/11 view of the world. That doesn't make them unpatriotic, not at all. But it does make them wrong.

SNOW: Clinton had her own interpretation of Rove's message.

CLINTON: "Here's your game plan, folks. Here's how we're going to win. We're going to win by getting everybody scared again." Contrary to Franklin Roosevelt, we have nothing to fear but fear itself. This crowd is, "All we're got is fear, and we're going to keep playing the fear card."

SNOW: She also took aim at the Bush administration when it comes to Osama bin Laden.

CLINTON: You can not explain to me why we have not captured or killed the tallest man in Afghanistan.

SNOW: In response to Clinton's speech, the Republican National Committee said, "Hillary Clinton and her fellow Democrats continue to promote a litany of attacks rather than any agenda of their own. America will be better served when Democrats take off the gloves and come to the table with substantive ideas."

The verbal dueling comes as Clinton becomes more visible on Republicans' radar screen. Wednesday at the White House, aides to Karl Rove met with Clinton's potential Republican Senate challenger in New York, John Spencer. Sunday, RNC Chairman Ken Mehlman said Clinton is too angry. And some political observers say Clinton is taking on the GOP first.

MARY ANN AKERS, "ROLL CALL": I think when Ken Mehlman dubbed her the angry candidate, he sparked a little bit of psychological warfare. And they're hoping that it's going to get under her skin. But she has decided to play ball by going after them on the national security issue, the war on terror.

(END VIDEOTAPE)

SNOW: And at another point during her speech last night, Senator Clinton said she realized after she got to the Senate in 2001 that the administration was trying to undo everything her husband did. And she said she took that kind of personally -- Wolf.

BLITZER: All right, Mary. Thank you very much. Mary Snow reporting on our political radar today.

A leading anti-war activist now says she won't run against for the U.S. Senate against the California Democrat Dianne Feinstein. Cindy Sheehan, whose son was killed in Iraq, criticized Senator Feinstein for voting to authorize the use of force in Iraq. But Sheehan says she herself can be more effective against the war as an activist. He was forced to step down as the number two Republican in the House of Representatives. But the indicted Congressman Tom DeLay has had a soft landing, of sorts, gaining a seat on the highly sought- after Appropriations Committee. Republican leaders also gave DeLay a seat on the sub-committee overseeing the Justice Department.

They call it the Pork Barrel Reduction Act. The bipartisan group led by Senator John McCain is out to stop the Senate's controversial practice of slipping individual members' pet projects into larger spending bills, mandating that specific spending. McCain's bill would require the so-called earmarks that they be identified in detail and would give senators the chance to raise objections.

Let's turn back to one of our top stories right now, a Senate panel investigating the Katrina disaster. Tomorrow, they'll hear directly from the ex-FEMA director Michael brown. But today, the Department of Defense is testifying, and you could get a front row seat online. Our Internet reporter Jacki Schechner is joining us. She has more -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, in some ways, even better than a front row seat because you can study some of the presentation materials from the comfort of your home or office. Take a look at the Web site.

First, it's Lieutenant General Steven Blum of the National Guard presented some of the slides on how many National Guard troops were in Louisiana and Mississippi and Alabama at the time of Hurricane Katrina. Now, you can see it's peak on September 7th, it was 50,000 National Guard troops. But what's interesting to note is how many troops were not in place, unfortunately, when Hurricane Katrina hit.

The next slide will show you how many Air National Guard and Army National Guard were in the Middle East on September 7th compared with how many were sent to the Gulf Coast around the same time.

Another presentation was from the Louisiana National Guard. And they juxtaposed the Noah Map of Katrina's progress with their official time line, Wolf. So, again, you can go online and take a look at the presentation itself in anticipation of Michael Brown's testimony tomorrow.

BLITZER: Jacki, thank you very much.

Up next, why is President Bush saying more about intelligence gathering? Jack Cafferty has been going through your email.

And what do U2, Kelly Clarkson, and this man -- you're looking at him. What do they all have in common? We're going to tell you when we return. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Here's a look at some of the hot shots coming in from our friends over at the Associated Press, pictures likely to be in your hometown newspapers tomorrow. China, bird flu spreading. Chinese police officers wear protected gear while standing guard. Almost 200,000 birds have been killed in China to stop the spread of bird flu.

Vatican City. Benedict XV (sic) and the first lady. The Pope, Laura Bush, and her daughter Barbara spend time with the pope at the Vatican, Pope Benedict XVI.

On to Kuwait. Two men put a robot on the camel for the sixth annual camel races. Kuwait recently banned the use of children as jockeys, so now they've brought in robots.

And here in Washington, President Bush takes a moment to look at a commemorative bronze bust of himself after making a speech on the war on terror. Some of today's hot shots, pictures often worth a thousand words.

Jack Cafferty is back with us now. He's in New York. He's got "The Cafferty File" -- Jack.

CAFFERTY: Wolf, the White House appears to have changed course, at least some. They've decided to brief House and Senate Intelligence Committees on highly classified details on that controversial domestic eavesdropping program that's being done without a warrant. The question is, why is the White House suddenly being more cooperative in the investigation of the domestic eavesdropping? Interesting ideas on why this is happening.

Jim in La Bonia (ph) Michigan writes, "Just like you do with your dog when it's being a little rambunctious, Bush and Karl Rove are throwing Congress a bone so they'll calm down. They won't tell Congress anything of substance. Eventually, the media will stop its coverage, and they will continue their illegal spying."

Vic Roxboro, North Carolina: "Because Bush is in deep trouble. He knows he broke the law. If the Democrats wind up getting the Senate and House, he could wind up impeached."

Terrence in New York writes, "The White House is not just now being more cooperative. After this info was illegally leaked to the press, the White House welcomed a Senate investigation. The reason they are not stonewalling is because they feel total confidence in the validity and legality of monitoring these Americans who are speaking to al Qaeda overseas."

Brad in Tampa, Florida: "Jack, they aren't more open. It's the illusion of openness. Not one of them will go under oath, so they can say whatever they want. It's a sham, a lie, a travesty. An independent counsel is needed."

And Walter in Seattle writes, "Why is the White House cooperating? Jack, I imagine it's because Congress now has photos of President Bush standing in between Mr. Rock and Mr. Hard Place" -- Wolf.

BLITZER: Jack, thank you very much. Jack Cafferty reporting from New York. Let's check in with Fredricka Whitfield once again from the CNN global headquarters of Atlanta with a closer look at other stories making news -- Fred?

WHITFIELD: Hello again, Wolf.

Warships under the command of the U.S. Navy have moved into international waters off Yemen in an effort to close a possible escape route for 23 fugitives from a prison in that nation. The fugitives include Jamal Ahmad Badawi. He allegedly planned the bombing of the USS Cole six years ago. Interpol says 13 of the fugitives are convicted al Qaeda terrorists.

Celebrations of the Shiite Muslim holy day of Ashura turned violent in Afghanistan today. Afghan state television reports that three people were killed and 82 wounded. The fighting reportedly began when Sunni Muslims accused Shiites of tearing up a sacred flag as they gathered for an Ashura commemoration.

The mission team for adventurer Steve Fossett says his experimental plane used more fuel than expected when it took off yesterday. And that means there is no margin for error as Fossett tries to break the world record for long distance flight. Fossett's goal is to circle the globe, then cross the Atlantic a second time before landing Saturday near London. He's a real dare devil, Wolf.

BLITZER: Thanks very much, Fred, for that. A moment ago, I said Pope Benedict XV, I meant, of course, Pope Benedict XVI. He met with the first lady at the Vatican today.

Senator Barack Obama may be clearing a space on his trophy shelf for his latest award, a Grammy. The Illinois Democrat won the Grammy for best spoken word for his recording of his book "Dreams from my Father." He beat out Garrison Keillor, Sean Penn, Al Franken, George Carlin among others.

Obama isn't the first politician to win a Grammy. The former president Bill Clinton has two to his name, both in the spoken word category. One is for his recording of "Peter and the Wolf" with the former Soviet leader Mikhail Gorbachev. The other for his recording of his memoir, "My Life."

Senator Hillary Clinton also has a Grammy for her recording of her book, "It Takes a Village." Other past winners include the Reverend Jesse Jackson, the Reverend Martin Luther King Jr., and the only Republican we could find, the late Senator Edward Dirksen. He won a Grammy for best documentary recording back in 1968. Congratulations to all the Grammy winners.

Still to come, who would conservatives like to see in the White House in 2008? Bill Schneider finds it's a hot-button issue, literally.

And in our 7:00 p.m. Eastern hour here in THE SITUATION ROOM, more on the Abramoff email. We're going to talk to the magazine editor on the receiving end. Stay with us. (COMMERCIAL BREAK)

BLITZER: Let's go to our Andrea Koppel. There's a development she's following on the renewal of the USA Patriot act. What are you getting, Andrea?

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Wolf, you'll remember late last year, in what was a huge embarrassment for President Bush and for the Republican majority leader Bill Frist, the fact that the Patriot Act could not be renewed, and in fact was filibustered by a bipartisan effort.

Now it appears there's a kink in the armor. Four Republicans who had initially supported the filibuster came out today and were joined by the second-most powerful Democrat in the Senate, saying now that they've changed their minds. They've reach what they believe is an acceptable compromise with the White House, and would now support the reauthorization of the Patriot Act.

The four Republicans include John Sununu, Senator Larry Craig, Lisa Murkowski, and Senator Chuck Hagel. The two issues that we're talking about right now -- the two key issues that they say they've compromised on.

One is known as the gag order. That meant that if you had been approached by the law and by federal authorities and you had to hand over documents if you were a doctor or somebody had a business, a lawyer, you could not talk about it. You couldn't disclose that. Now, under this compromise, after one year, you could go to a judge and have it reviewed.

The second compromise has to do with what had been known as sort of the library issue, the fact that law enforcement authorities could go to the library and they could open up the books, literally and figuratively. Now, Wolf, what they're saying is that would not happen in certain cases, certainly not with books, that law enforcement authorities couldn't do that, Wolf.

BLITZER: Andrea, thanks very much for that update.

Moving on now to other news, who are the favorites for the next presidential election? It depends on who you ask and where they stand along the political spectrum. Sometimes the answer is right on the button. The button. Our senior political analyst Bill Schneider is joining us now with more on the button -- Bill?

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Conservative activists are meeting in Washington this week with lots of buttons, and they're talking about '08. But who are they talking about? We checked in with them to see.

(BEGIN VIDEOTAPE)

SCHNEIDER : Here at the Conservative Political Action Conference, you see banners and buttons for everybody.

UNIDENTIFIED FEMALE: Well, I'm from New York. I love Rudy.

UNIDENTIFIED MALE: I actually like Tom Tancredo.

SCHNEIDER: Here's a hot tip from a blogger.

UNIDENTIFIED MALE: I think the real guy to look at is a guy like Mike Pence (ph).

SCHNEIDER: How's John McCain doing in that all-important measurement, button sales?

UNIDENTIFIED MALE: John McCain? Not a one yet.

SCHNEIDER: Oops. Notice the Virginia Senator, George Allen, is speaking at the same event as Vice President Cheney.

UNIDENTIFIED MALE: I happen to be a George Allen guy.

SCHNEIDER: Could be a guy thing.

UNIDENTIFIED MALE: He resembles the appearance of the average NFL-watching, barbecue cooking, dad.

SCHNEIDER: But there's also a girl thing going on here. This retired marine is the national chair of Americans for Dr. Rice.

UNIDENTIFIED FEMALE: I was so impressed with her as a United States marine that I said, "That lady could be my commander-in-chief."

SCHNEIDER: You go, girl.

UNIDENTIFIED FEMALE: It's about time that women run this country. Men have screwed it up for 300 years.

SCHNEIDER: Conservatives are not in agreement who their candidate will be, but they do agree on who their opponent will be.

UNIDENTIFIED MALE: Hillary's going to get it anyway for the Dems.

SCHNEIDER: In a race like this, the conservative group's chairman says...

UNIDENTIFIED MALE: Strange things are liable to happen.

SCHNEIDER: Like a familiar figure who's been making the rounds in Iowa.

UNIDENTIFIED MALE: The one I'm leaning towards is definitely Newt Gingrich at this point.

SCHNEIDER: And a less familiar figure.

UNIDENTIFIED MALE: I was told yesterday that the guy right now who's running around Iowa and actually resonating is Mike Huckabee of Arkansas. (END VIDEOTAPE)

SCHNEIDER: My conclusion, after spending the morning talking to conservative activists? Anybody who knows what's going to happen in 2008 is grossly misinformed -- Wolf.

BLITZER: Thanks very much, Bill, for that.

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