Return to Transcripts main page

The Situation Room

Port Security Debate Heats Up; Unrest in Baghdad After Mosque Bombed; Interview with Rep. J.D. Hayworth; Bush To Unveil Katrina Report

Aired February 22, 2006 - 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 to our viewers, you are now in THE SITUATION ROOM here new pictures and information are arriving all of the time. Standing by, CNN reporters across the United States and around the world to bring you the day's top stories.
Happening now, holy shrines in ruins in Iraq. Tensions between Sunnis and Shiites exploding. It's 3:00 a.m. Thursday in Baghdad after a day of attacks, counterattacks and a lot of bloodshed. Is the country nearing the brink of civil war right now?

Port security and political blunders. It's 7:00 p.m. here in Washington where the president is trying to contain a Republican revolt. This hour, mistakes made in that controversial port deal and the inside story on how it was approved.

And lessons from the Katrina disaster. The White House about to release an anxiously-awaited report. It's 6:00 p.m. in New Orleans where residents are counting down to the next hurricane season. Is the city and the nation ready? I'm Wolf Blitzer, you're in THE SITUATION ROOM.

Iraqi leaders tonight trying to talk their fellow countrymen away from the brink of civil war. Dozens of mosques have been burned today and religious violence is threatening to throw the fledgling democracy into chaos. We're covering all sides of that story. We will are going to get to it shortly. First, though, a CNN security watch.

The White House admitting it could have handled the situation better, but that's doing little to calm the political battle over the deal that would put an Arab company in charge of six U.S. ports. Our White House correspondent Dana Bash standing by live with details. Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, it's an internal Republican struggle that even some of the White House's closest allies fear could cost the president some of his precious political capital. And one today the White House conceded could have been avoided but wasn't because of some blunders.

(BEGIN VIDEOTAPE)

BASH (voice-over): Top Bush officials now admit the Republican revolt over allowing an Arab company to manage U.S. ports could have been avoided or at least tempered with a little common courtesy and communication.

JOHN SNOW, TREASURY SECRETARY: Our failing here, if there was a failing was in explaining this process and having this process understood by -- by our critics.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: In hindsight, when you look at this and the coverage it's received and the false impression that's left with some, we probably should have briefed members of Congress about it sooner.

BASH: It is only now that top Bush officials are actively briefing lawmakers and blanketing the airways.

UNIDENTIFIED MALE: This company is a reputable company.

BASH: Making the case for why they think turning over port operations to a company owned by the UAE will not jeopardize American security. Across the board, Republicans say they were in the dark and under political pressure and had no choice but to take their concern public.

UNIDENTIFIED MALE: When you get to the issue of security you are going to watch individuals, in this case the Senate and the House, focus what they believe is best for their constituents in terms of safety and if they don't understand the decision they are going challenge it.

BASH: But the problem began inside the White House, as CNN first reported Monday, the president did not even know about the deal until lawmakers started questioning it.

CNN is also now told, none of the top White House staff who may have foreseen and tried to quiet a political firestorm knew the deal was approved until after it was announced. Bush aides insist the process was their enemy. Deliberations are secret until over and focused on national security. One top official admits the panel had a collective tin ear.

UNIDENTIFIED MALE: I think we could have been more politically attuned, particularly with regard to briefing the Congress.

(END VIDEOTAPE)

BASH (on camera): But it is important to know, Wolf, that there were some Republicans like Congressman Peter King of New York who was briefed and still did not think that this deal should have gone through the way it did. There should have been more time to review it and analyze it, but I can tell you that in talking to several Republicans, many Republicans, they do believe that had there been better communication, if the White House greased the skids better, if you will, this kind of firestorm wouldn't have happened.

BLITZER: Dana Bash, thanks very much.

The White House reaffirmed today that the president did not know about the port deal until after it had been approved. Dana just reported that. Exactly who signed off on the sale, though? Our senior national correspondent, John Roberts is here in THE SITUATION ROOM. You've been looking into this part of the story, John. What are you picking up?

JOHN ROBERTS, CNN SENIOR NATIONAL CORRESPONDENT: Typically, Wolf, transactions like this are handled by a committee made up of people from 12 different arms of the administration. In this particular case there were actually 14 different arms that were brought in. Today I talked with on of two of the leaders of this whole process. His name is Clay Lowery, he is the assistant treasury secretary for international affairs and he's obviously stunned by this growing perception that this was a decision made by a bunch of dunderheads and he defended himself and all of his colleagues by saying that many of the people who made this decision are people who think about nothing else on a day to day base other than national security. Here's what he had to say.

(BEGIN VIDEO CLIP)

CLAY LOWERY, TREASURY DEPARTMENT ASSISTANT SECRETARY: Why is it that they would change what they do every single day because of one single transaction? They didn't do that. They worked hard and they looked at that time very carefully and, you know, as, I guess, one of the dunderheads. I support the type of hard work that people tried to do in this case.

(END VIDEO CLIP)

ROBERTS: Lowery insisted this was a decision made purely on the basis of national security not whether or not it was a popular decision. And it would seem, Wolf, after talking with him today, this idea that many foreign countries are involved in port operations here in the United States. Denmark, Taiwan, Singapore. It would seem that the idea of farming this out to another country, another company in another country whether it be in the United Arab Emirates or somewhere else just didn't seem to be some kind of a big deal as long as the national security implications were addressed.

BLITZER: There are also important financial implications for the U.S. as well.

ROBERTS: Absolutely. They're looking for cooperation on the war on terror from the United Arab Emirates. They want foreign investment in the United States and they're worried that it would have a chilling effect on at least two different issues if indeed this deal were not to go through.

BLITZER: John Roberts reporting for us. John, thanks very much.

Despite the uproar, the U.S. officials in charge of inspecting cargo say it doesn't make any difference who runs those facilities. Security, they insist, will remain the same. Our national security correspondent, David Ensor takes us behind the scenes in this exclusive report.

(BEGIN VIDEOTAPE) DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): At their state of the art national targeting center in Northern Virginia, customs and border protection officials screen the manifests of every single ship head for American ports. Looking for clues on which cargo to search for terrorist materials, drugs or other contraband. Customs then opens up just over five percent.

Assistant commissioner Jay Ahern says the purchase by an Arab- owned company of terminals at some U.S. ports will make no difference to the nation's security.

JAY AHERN, CUSTOMS AND BORDER PROTECTION: There's no foreign entity that owns a United States port. There's no foreign entity known for security in the United States ports. That still falls to the port authority that again, usually state, county and local governments.

ENSOR: Using sophisticated computer algorithms, officials here factor in over a hundred variables. Things like ports with historically poor security or corruption. Or possible deception. Bananas coming from Iceland, for example, would be sure to set off alarm bells.

AHERN: Certainly if someone wants to lie and misrepresent, they can take their chances to try to do that, but I'm very confident we have a lot of systems of checks and balances in place to go ahead and cross reference that data.

ENSOR (on camera): One factor that is not considered and officials say it does not need to be when deciding on the risk and which cargoes to open is whether that cargo will arrive at a terminal at a U.S. port that is managed by a foreign company.

(voice-over): Instead customs officials focused on the place cargo was packed and the port of origin. They have arrangements with 43 foreign ports where they can inspect cargo headed to the U.S. before it even leaves. One of the ports where cooperation is excellent, say U.S. officials is Dubai in the United Arab Emirates. David Ensor. CNN, Washington.

(END VIDEOTAPE)

BLITZER: And we are going to have much more on the ports controversy coming up this hour. Remember, though, stay tuned to CNN day and night for the most reliable news about your security. Zain Verjee is joining us now once again from the CNN Center with a closer look at some other stories making news. Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf, New York's Mayor Michael Bloomberg says a newly-identified anthrax case appears isolated and accidental. The 44-year-old New York drummer has been hospitalized with anthrax symptoms in Pennsylvania after getting sick last week. Health officials say he became ill after handling animal hides he bought in Africa. Three other people may have also been exposed to anthrax spores are being treated with antibiotics. The South Dakota Senate approved a bill that would ban nearly all abortions in the state. Supporters hope that the measure would trigger a legal battle that goes all of the way to the U.S. Supreme Court and might ultimately overturn Roe versus Wade's decision legalizing abortion. But the South Dakota abortion ban isn't allowed yet. The state house which passed a similar measure must now decide whether to accept the Senate version.

And would you retire right away if you won the nation's largest ever lottery jackpot of $365 million? Well, that's what at least three of the eight Powerball winners are doing. The seven men and one woman came forward today. They all worked at a meat processing plant in Lincoln, Nebraska and they'll each get $15 1/2 million after taxes are taken out.

Wolf, would still anchor the SITUATION ROOM if he won, right, Wolf? I am wondering what Jack would do?

BLITZER: Jack. I don't know what Jack would do. But I know you would still be here in THE SITUATION ROOM.

VERJEE: No, I wouldn't.

BLITZER: Jack, what about it?

JACK CAFFERTY, CNN ANCHOR: I don't know, but I watched a little of the news conference this morning and one of those guys should have been a stand-up comic. He said he was a maintenance mechanic at that meat processing plant. He was one funny dude and had the press corps in stitches for the 10 minutes or so that I watched. Funny guy.

BLITZER: All right, Jack, let's move on.

CAFFERTY: Arab phobia. That's what some people are calling the backlash to this deal that would hand control of six major U.S. ports to a company from the United Arab Emirates. Some Arabs in this country and overseas are saying that it's bias and bigotry not security concerns at the root of the outrage. This is what Maureen Dowd said in the column in "The New York Times." We quote here. "The American people could be forgive if they're confused what it means in the Arab world to be a U.S. ally. Is it a nation that helps us sometimes, but also addicts us to oil and then jacks up the price, refuses to recognize Israel, denies women basic rights, tolerates radical anti-American clerics, looks the other way when its citizens burns down embassies and consulates over cartoons and often turns a blind eye when it comes to hunting down terrorist in its midst?" Unquote. Maureen Dowd.

How's this for an idea? How about the Arab community address removing the radical Islamic jihadists from its midst? That would render this entire discussion moot, now wouldn't it? Here's the question, is it fair to characterize criticism of the port deal as anti Arab? e-mail us your thoughts. Caffertyfile@CNN.com or go to CNN.com/caffertyfile.

BLITZER: Jack, thanks very much. Jack Cafferty with the "Cafferty File."

Coming up here in THE SITUATION ROOM. The protest, outrage and now a lot of bloodshed again in Iraq. Lives are lost, democracy right now at risk. We are going to have a report on the violence and we'll consider what if anything, the Bush administration can do about it. Also ahead, more on port security. It's under scrutiny right now. One Republican congressman says no to the deal and he's live in THE SITUATION ROOM to explain why.

It could be just about 100 days before another disaster. With the next hurricane season on the horizon, will America be ready this time? You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Right now, in Iraq there's rage, there's revenge. Tensions are simmering around the country and many fear the country literally is on the verge of a civil war. Angry demonstrations have burned dozens of Sunni mosques and Muslims and others worldwide are urgently appealing for calm. Shiite militias are apparently exacting revenge after one of the most sacred shrines was reduced to rubble in a bombing today. Let's get the latest from CNN's Aneesh Raman in Baghdad. Aneesh?

ANEESH RAMAN, CNN BAGHDAD CORRESPONDENT: Wolf, Iraq tonight moving unnervingly close to the brink of civil war under an attack this morning on one of Shia Islam's holiest shrines, the Askaria (ph) mosque in the city of Samarra. Men dressed as Iraqi police commandos stormed the mosque earlier today and they bound the guards that were on duty and detonated a number of explosives, bringing down the golden dome that for almost a century has set atop that mosque.

At unleashed fury in the Iraqi streets by Shia protestors. Thousands upon thousands pouring out in Samarra and the holy city of Najaf and the capital, in the Katamiya (ph) area of Baghdad, up to 10,000 protestors took to the streets and that area borders Sadr City where hundreds of Mehdi militia, those loyal to the Shia cleric Muqtada al Sadr, armed, patrolled the streets as well. Reprisal attacks also underway, at least 30, upwards of 30 Sunni mosques came under fire in reaction to this morning's attack. Three Sunni imams were killed in the southern city of Basra amid massive protests there. Shia militia engaged in a gun battle with Sunni politicians. All of this as Iraq's leaders cautioned calm in the days ahead as fear does grow that the sectarian strife could rise. Wolf?

BLITZER: Aneesh Raman in Baghdad, thanks. We want to show you what the shrine looked like before and after today's strike. It's called the Golden Mosque, before being reduced to rubble its golden dome was famous. American officials say they'll try to help rebuild it. Shiites consider it sacred believing one of their revered imams who disappeared in the eighth century will someday reappear at the mosque as their leader. Let's get more on this important story. CNN's Tom Foreman is here in THE SITUATION ROOM. Tom?

TOM FOREMAN, CNN CORRESPONDENT: For all of the excitement over the port issue, this is a story that has a much more direct ability to reach into your neighborhood and your family and I'm going to show you why. Let's go in and look at where this is. If you fly into Samarra, it's north of Baghdad, here, as you well know, Wolf. It's right up into this area and this is where the shrine is right in the middle of the city. It's a huge landmark. You can't even miss it.

Look at these pictures from the air here as we come inside. That's how big this is. A massive center there, but now look at where the protests are. The protests have now spread out, not just in this city, but all throughout this region. This matters for one very key reason. One of the basic places where the U.S. has been trying to deal with major attacks all of this time is over in this red area which roughly corresponds to all of the places where as you can see on this other map, that's where most of the Sunnis are. The Kurds are up there in the purple area and the Shiites are down here.

But look at where these are happening. Most of these are happening in the Kurdish or Shiite areas. These have been the quiet areas. The places have where the military has not had to be so involved. If these places erupt like this, while they're still strong defend this part, then you're talking much more something like a civil war and that will be much more dangerous for all sorts of young American service people.

BLITZER: Tom Foreman, thanks very much for that. Just a short while ago here in THE SITUATION ROOM, I spoke with the deputy director for plans and strategy of the U.S. Military Central Command. I asked Brigadier General Mark Kimmitt about the storm of protests the bombing has now set off.

(BEGIN VIDEO CLIP)

BRIG. GEN. MARK KIMMITT, U.S. ARMY: It is a tough situation right there, but the important thing is, clearly the Iraqi government of all stripes and of all faiths have come out and said let's calm down. We hope that that shock absorber effect will cause the situation to calm down and that this will be a one-day incident. People get out, scream, yell and then things settle down tomorrow.

(END VIDEO CLIP)

BLITZER: Let's hope. Still to come here in THE SITUATION ROOM, what impact will this religious infighting have on the U.S. commitment to Iraq? James Carville and Terry Jeffrey, they are here on today's "Strategy Session."

Plus, port insecurity? We'll speak to one Republican congressman who says no to the takeover deal. Stay with us.

(COMMERCIAL BREAK)

BLITZER: New attacks and religious divisions in Iraq. Could an all-out civil war be next in our "Strategy Session," Democratic strategist James Carville and Terry Jeffrey, editor of "Human Events."

(BEGIN VIDEOTAPE) BLITZER: Let's talk about the situation in Iraq today. I don't think we could overemphasize what a perilous moment this is right now. Listen to the U.S. ambassador Zalmay Khalilzad and what he said earlier.

ZALMAY KHALILZAD, U.S. AMBASSADOR TO IRAQ: We denounce in the strongest terms that terrorist destruction of the Golden Mosque, the shrine of the askari (ph) imams, this heinous crime is a deliberate attempt to foment sectarian strive in Iraq and the region.

Terry, this holy Shiite shrine is attacked, is bombed. Since then some 90 Sunni mosques in revenge have been attacked and some of them burned, some of them ransacked and no wonder Zalmay Khalilzad who knows the situation quite well is as worried right now as he is.

TERRY JEFFREY, EDITOR, HUMANEVENTSONLINE.COM: Well, exactly right. Back in September, Zarqawi issued a declaration to declaring sectarian war. That's what al Qaeda wants. They want a sectarian war between the Sunni and the Shia. That's what this act was intended to do. There's an intense crisis situation in Iraq today. The Bush administration strategy is trying to separate Zarqawi out from indigenous Sunnis who know back the insurgency that maybe can be brought into the new government. This is a crucial moment. Maybe, just maybe there will be good that comes out of this where Sunnis say these guys have gone too far. We have to reach out to the Shias and make peace. We can't go further into a war.

BLITZER: Even before today and this horrible, horrible, chain of events and our latest CNN/"USA Today" Gallup poll. Was it a mistake to send U.S. troops into Iraq. Fifty-five percent said yes, 42 percent said no. The majority, believing it was a mistake to get involved in Iraq, presumably if this sectarian violence escalates that number is going grow.

JAMES CARVILLE, DEMOCRATIC STRATEGIST: You are so right to ask about this because today, 90 percent of the news is about this port deal. They are going figure a way out of the port deal. It is a lot easier to get out of this port deal than it is to figure a way out of Iraq. Let me tell you. And by singling out this one mosque it provoked 90 other attacks. This civil war was festering, was happening and it was sort of a repressed civil war. It's less repressed now.

Look, hopefully, I hope Terry is right. I hope something comes of this, but right now I think that this is a much bigger story than the port story because they'll figure a way out with the port story a long time before they figure a way out of this one.

JEFFREY: All Americans have a huge interest in making sure that they get to the endgame in Iraq where there is stability in the country where Sunnis and Shias are dealing with each other politically and not by blowing each other up and blowing up the religious shrines.

Good news today is that the Ayatollah Sistani, clearly is the most influential Shia in the country, seems to be trying to tamp thing down and keep the Shia community cool. Hopefully he will succeed in that.

CARVILLE: Yes.

BLITZER: Let's hope he does. Thanks very much to both of you.

(END VIDEOTAPE)

BLITZER: Just ahead, it will make any difference to security if an Arab company is running U.S. ports?

I'll ask a Republican congressman who is right now at odds with President Bush, plus the White House about to release its own report on the Katrina response with just 100 days to go before the next hurricane season. What lessons have we learned? You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: More now on the port controversy. Dubai Ports World is poised to take control of six U.S. facilities under a deal approved by the U.S. government. The company is owned by the United Arab Emirates. Reem al-Hashimy is the country's commercial attache here in the United States. She's joining us here in THE SITUATION ROOM for this exclusive interview. Thanks very much for coming in.

Thank you, my pleasure.

BLITZER: Why should Americans trust the United Arab Emirates in this deal?

REEM AL-HASHIMY, UAE COMMERCIAL ATTACHE: If you are to look at the historical relationship between the United Arab Emirates and the U.S., you will se it spans over three decades and it's across several levels. The military intelligence is strong. We have fought side by side with American troops in Afghanistan and prior to that in Somalia and Kosovo. We have a very strong track record with this country and it has been a consistent track record on intelligence.

We've also been a very strong friend, in fact one of the strongest in the region. We have task forces to track down terrorist financing. Nuclear nonproliferation. In fact, we've captured al Qaeda operatives, senior members and chief naval operators and handed them over to the United States. So across many levels there's a very strong relationship that binds us.

BLITZER: Here is the arguments then. You've heard them all that two of the hijackers were from the United Arab Emirates, that a lot of the funding and the operational funding came through the United Arab Emirates. The UAE was one of only three countries that had diplomatic relations with the Taliban regime in Afghanistan before 9/11. You've heard these arguments.

AL-HASHIMY: Right. And to that I would say, terrorism doesn't respect borders. It doesn't respect nationalities. We cannot escape the fact that yes, two hijackers were from the Emirates. But we're also the only Muslim and Arab country standing with American troops, fighting in Afghanistan shoulder to shoulder.

When we talk about our key strategic relationship, it's not just political rhetoric. We're actually very good friends, and we have been for a very long time in a very tangible sense.

BLITZER: I want you to listen to what Congressman Peter King said yesterday. He's a Republican from New York. He's the chairman of the House Homeland Security Committee. Listen to this.

(BEGIN VIDEO CLIP)

REP. PETER KING (R), NEW YORK: This has nothing to do with being an Arab nation. It has to do with a country that's had unusually close ties to terrorism. And it's a risk we just can't take.

(END VIDEO CLIP)

BLITZER: He says, "It's a risk we just simply can't take." Do you understand this concern, this uproar that has developed here in the United States?

AL-HASHIMY: We appreciate that in a democratic process, people can ask questions and raise concerns. And we're quite respectful of that process. But I would say to Mr. King's comments is we do have a very strong record in fighting terrorism and have been doing so for many years.

BLITZER: What would be the ramifications if Congress enacted legislation that would block this deal, the president then went ahead and vetoed that legislation, but then Congress, with the two-thirds majority in both houses, went ahead and overrode that veto? What would be the fallout in the UAE, in the Arab world?

AL-HASHIMY: I can say that when you have a relationship that is strong, a friendship that is strong and has been for many years, it goes through bumpy rides. You have an ebb and flow. Will we be disheartened by Americans and by America? We have a very strong story to tell about our relationship. I don't think that that will break. It's too strong to break.

BLITZER: Reem al-Hashimy, thanks for coming in to THE SITUATION ROOM. Appreciate it very much.

AL-HASHIMY: My pleasure. Thank you very much.

BLITZER: Earlier, the chief operating officer for Dubai Ports World, Ted Bilkey, joined us in THE SITUATION ROOM for another exclusive interview. He also emphasized that regardless of who runs the ports, security stays the same.

(BEGIN VIDEO CLIP)

TED BILKEY, COO, DUBAI PORTS WORLD: We don't control all of the boxes that come here. They're loaded on ships and ports from all over the world. And, you know, in the realm of today, as we well know, anything is possible. But as far as something from Dubai happening, U.S. customs is there. They have the right. We have given them the sovereign right to inspect any container they wish to before it's loaded on a vessel.

(END VIDEO CLIP)

BLITZER: Let's get some more reaction now to the deal. Joining us is Republican Congressman J.D. Hayworth of Arizona. He's in Scottsdale. He's a strong opponent of this deal.

You've heard the case from the president, from his top advisers, from a representative of the UAE, from the COO of this Dubai Ports World. Go ahead and briefly make the case on your side.

REP. J.D. HAYWORTH (R), ARIZONA: Well, Wolf, simply stated, m\y constituents -- and I believe most of the American people -- follow this rule. When it in doubt, cut it out. And there are genuine doubts as we approach this deal, the expedited review on the part of some 14 technocrats within Treasury and DHS and other governmental agencies, the concerns that have already been outlined earlier in your broadcast.

And, Wolf, let me stress, this is not some form of Islamophobia. This is not some irrational concern. But there are legitimate concerns to the security question. And I listened with interest to both the attache and the CEO for Dubai Ports World.

Understand that in any business transaction, due diligence is required and information of a proprietary nature concerning security, both the strengths and the weaknesses, and, quite frankly, the vulnerabilities, are included. And I have no doubt that as the committee took a look at the board of directors they've all been vetted.

But mid-level people involved in the company, in the United Arab Emirates could have other kinds on what transpires. I realize nothing is foolproof, but you see the legitimate concerns that are there on the part of the American people.

BLITZER: Let me read to you what the senior senator from your home state of Arizona, John McCain, said. He said, "The president's leadership has earned our trust in the war on terror, and surely his administration deserves the presumption that they would not sell our security short." He's willing to give the president, you know, the benefit of the doubt.

HAYWORTH: Well, personalities aside, of course, Senator McCain also said earlier today that he wanted to take a closer look at this. And my simple point about this is it transcends personalities.

Listen, when the president is right, he has no stronger ally than the congressman from the fifth district of Arizona. But when there are questions and concerns, my responsibility, after all, constitutionally, is to our constitution, is to my constituents, and not simple political loyalty. I believe the president is right to track down the terrorists on their home turf. I have some disagreements in terms of border security. I have a disagreement here. It is polite, but it is profound, and I would be derelict in my duties to simply step away from that. It doesn't mean something nefarious or casting the entire doubt and character of our commander-in-chief, casting doubts on that. It's a legitimate disagreement on this policy.

BLITZER: Here's what the White House press secretary Scott McClellan said. Listen to this.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: If this transaction were blocked, this would not change port security one iota. The Coast Guard and the Customs and Border Patrol remain in charge of our security.

(END VIDEO CLIP)

BLITZER: You don't buy that argument?

HAYWORTH: No. Again, operational security. That's a true statement as far as it goes, Wolf. But again, the information that would be provided to this company based in the United Arab Emirates and the many hands that would have access to that information about strengths and vulnerabilities, information of a proprietary nature, is nothing to easily dismiss.

The statement was accurate as far as it went, but there's another side to the story about all the information and possible firewalls that might exist or, quite frankly, that don't exist in terms of that delicate information in terms of our port security.

BLITZER: Here's what you said almost exactly two years ago. You said this. "The president is guts up, and he is not going sacrifice American security for any short-term gain." You want to revise that statement right now?

HAYWORTH: No. Again, this is not a matter of Congressman J.D. Hayworth versus President George W. Bush. This is a legitimate disagreement, personalities aside, with the myriad of decisions that must be made for any government of the people and by the people and for the people.

And my people are telling me, "Congressmen, hold on." And I'm listening to them because my responsibility is to my constituents and to the Constitution, and I have a legitimate disagreement on this with the president that briefings have not cleared up, because quite frankly, there have not been a lot of briefings as has been reported. And this is not something that can just pass by without serious questions being asked and being answered.

BLITZER: We have 10 seconds. You want him to campaign for you this year? HAYWORTH: Well, as I said earlier, the president of the United States is deserving of respect. And as I said earlier this year, I have some concerns and disagreements with the president.

I renew my invitation for the president to come visit the border areas of Arizona to talk with Arizonans who are concerned about a nightly invasion by illegals and the entire national security component there. So I would welcome a visit to deal with the tough business of governing rather than the cosmetics of campaigning.

BLITZER: Sounds like a no to me. Thanks very much, congressman, for joining us.

HAYWORTH: Thank you, Wolf.

BLITZER: Let's check in with CNN's Anderson Cooper for a preview of what's coming up tonight on his program -- Anderson?

ANDERSON COOPER, CNN ANCHOR: Wolf it sounded like a no to me, too.

Yes, tonight at 10:00 on "360", more on the politics over the port, and there are a lot of them over the port battle.

We're also going to take a look at the KKK. It is younger and larger, they say. We'll take you inside one of its meetings, not in the south, but in Ohio, where a Klan leader says membership has increased since 9/11. Wait until you hear their number one recruiting tool right now.

And also, perhaps the largest experiment of its kind, the ultimate human history project. Who was your first ancestor? National Geographic and IBM have teamed up to collect DNA samples from around the world to find the connections to the past. We'll have all of that and more tonight at 10:00 -- Wolf?

BLITZER: Sounds good, Anderson. Thanks very much.

Up ahead, 100 days until the next hurricane season begins. Is New Orleans ready? We're going to take you there live. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: The Bush administration is just hours away from reporting to the nation on the lessons it learned from the Hurricane Katrina disaster. Our White House correspondent Suzanne Malveaux has a preview -- Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, with the hurricane season just three months away, President Bush is unveiling his much-anticipated report about the government's failures, as well as lessons learned over Hurricane Katrina.

There are about 125 recommendations under 17 categories. They include having the military take on a much more robust role during a national catastrophic event in the case that state and local first responders become overwhelmed.

Also, a restructuring of how the federal government deals with these national emergencies, and having each department become proactive in its response. The president's homeland security adviser Fran Townsend will be laying out some of the details.

This, of course, after the president meets with his cabinet and White House aides telling, "Do not expect any bombshells. There will be no calls for FEMA to be taken out of the Department of Homeland Security, and there will be no calls for the resignation of the secretary of homeland security, Michael Chertoff" -- Wolf?

BLITZER: Suzanne Malveaux reporting. Thanks, Suzanne.

Get this, it's only 100 days before the next hurricane season begins. So is New Orleans any better able to handle a hurricane right now? Let's go straight to CNN's Chris Lawrence. He's on the scene for us -- Chris?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, you said it. The clock's ticking. So today, we talked to the police, the doctors, the scientists, everyone involved in getting this city ready for the next big storm.

(BEGIN VIDEOTAPE)

LAWRENCE: The U.S. Army Corps of Engineers is racing to reinforce the levees.

WALTER BAUMY, U.S. ARMY CORPS OF ENGINEERS: I think we're probably a little bit behind of where we'd like to be, but that's sort of expected on a job that's this big.

LAWRENCE: Building a stronger system would take years. They're just trying to get the levees back up to where they were last year.

BAUMY: We're not building a system to withstand a Katrina-level storm.

LAWRENCE: When those levees broke, the Coast Guard rescued thousands of stranded people from the floods. Now, they're adapting the plans to fit a different New Orleans.

ADM. ROBERT DUNCAN, U.S. COAST GUARD: There's weaknesses in the community. There are people living in temporary housing that's not as strong as the housing that they might have occupied at the entrance of the last season. Trailers, there are people in tents in some places.

DR. JAMES AIKENS, EMERGENCY MEDICINE: And then also, a huge number of physicians and nurses have not come back.

LAWRENCE: Dr. James Aikens works in a makeshift triage at the Convention Center. He's pushing authorities to evacuate critical care patients before the next storm.

AIKENS: Which is something that we felt was impossible. We now know from our experience with Hurricane Rita that it can be done.

LAWRENCE: New Orleans police say they had three boats during Katrina and couldn't reach a lot of the flooded areas. Now, the department has ordered 30 boats.

SUPERINTENDENT WARREN RILEY, NEW ORLEANS POLICE: Have they arrived? I've heard that some of the high water vehicles are enroute, but we have not received the boats yet. So it's on order. I don't know. But we will definitely need that within the next probably 60 days.

(END VIDEOTAPE)

LAWRENCE: Yes. You can obviously hear frustration from the New Orleans police chief. Ideally, you'd like to have all of that equipment in place, inspected, and have your people trained on it well before you actually have to put it to use in an actual emergency -- Wolf?

BLITZER: All right, Chris, thanks very much.

Let's go back to Zain at the CNN Center for a look at some other news making headlines around the world -- Zain?

VERJEE: Wolf, British police are looking for a gang of armed robbers who carried out one of the largest-ever bank heists. Officials say that the men impersonated police officers to get inside a security company in southern England. They reportedly were armed with handguns. They tied up about 15 employees and then made off with $43 1/2 million. No one was injured in the heist.

Hope is fading in the search for any more survivors of Friday's deadly mudslide in the Philippines. Rescue workers are trying to make their way through hundreds of feet of thick mud that covers an elementary school. As many as 300 children and teachers are believed to be buried in the rubble, 107 people are confirmed dead after a rain-weakened mountainside collapsed last week. More than a thousand people are still missing.

And Berlin, Queen Elizabeth I. They were just two of the Tower of London's famous prisoners. But now, the ravens are the newest inmates. Guardsmen have locked up six ravens inside a turret, basically as a precaution against the deadly bird flu virus.

Now, legend says, Wolf, if the ravens ever leave the thou on the Thames, it will crumble, and England will be in peril. But, you know, tower officials say, "Look, we just can't take any chances." So it appears that there's a rather eerie silence at the 1,000-year-old fortress -- Wolf?

BLITZER: Eerie, indeed. Thanks very much, Zain, for that.

Up ahead, the bottom line on the controversial port deal. What kinds of goods are really coming into the nation's ports? Our Ali Velshi will explain. And it's Jack's question of the hour. Is it fair to characterize criticism of the port deal as anti-Arab. After the break, Jack has your e-mail.

(COMMERCIAL BREAK)

BLITZER: The controversy over an Arab company potentially taking charge of some U.S. ports got us wondering, what exactly are in those millions of containers that pass through our ports each year. Our Ali Velshi is joining us from New York with the bottom line -- Ali?

ALI VELSHI, CNN CORRESPONDENT (voice-over): Hey, Wolf. Everything we buy, so much of what we have anything to do with, comes in from those containers. There's ventilated ones, there's refrigerated ones. And in the industry, a container is referred to as a box. So we thought we'd asked, what's in the box?

(BEGIN VIDEOTAPE)

If you wear it, listen to it, sip it, or drive it, there's a very good chance it first hit American soil by way a port. Seaports handle 99 percent of all the import by volume that comes in from overseas. Now, that doesn't include things imported from America's biggest vendor, Canada, and its third biggest, Mexico. Those things usually come in by train or truck.

More than half of everything that retailers sell in America arrives by sea. Americans buy more and more each year from other countries, making ships and the ports where they unload the feeding tube for the American consumers.

Who ships the most to the United States? China. Japan, Germany, the U.K., and South Korea are the next biggest. One of the largest ports in the United States is New York-New Jersey. Look in the containers there and you'll find beverages, vehicles, and furniture from Europe and Asia.

The country's biggest ports are in California, at Los Angeles and Long Beach. They get the lion's share of Asian shipments. Clothing, cars, and electronics fill the West Coast containers. And Houston is the biggest port for oil and for coffee coming in from South America. .

(END VIDEOTAPE)

VELSHI: Wolf, only 1 percent of the stuff that doesn't come in from Canada or from Mexico comes in by airplane. Those are usually high-value goods, things like diamonds, for instance, or flowers, which have to get here in a big hurry -- Wolf?

BLITZER: Good stuff, Ali. I learned something. Thanks very much. Our viewers learned something, as well.

Many facilities at U.S. ports are already operated -- get this -- by foreigners. Our Internet reporter, Abbi Tatton has been looking into that part of the story -- Abbi? ABBI TATTON, CNN INTERNET REPORTER: Wolf, yes, it's not at all unusual for a foreign-based company to operate a terminal in a U.S. port. We looked at some of the major ports. The busiest is the Port of Los Angeles. It has seven operational container terminals there, six of them run by foreign-based companies. One of them is called the China Shipping Terminal.

Another one run by this company out of Taiwan. Another port here, the Port of Tacoma, operates facilities and leases facilities to both U.S. and foreign-based companies. A spokesman for that port told me today that it doesn't matter where the company is based, everyone has to abide by the same rules -- Wolf?

BLITZER: Thanks very much, Abbi.

Let's find out what's coming up on "Paula Zahn Now." Paula is standing.

Welcome back, Paula.

PAULA ZAHN, CNN CORRESPONDENT: Thanks, Wolf. At the top of the hour, we're going to continue our coverage of a story you've been on all hour long, but we are going to hear for the first time from a member of the committee that actually approved the U.S. ports takeover by a company from the United Arab Emirates.

Plus, the hottest TV event in Los Angeles. Why can't viewers turn away from high-speed chases? This happens to be the case nationally, as well.

And have you been hearing what Donald Trump has had to say about Martha Stewart, and what she's saying about him? It's not very nice, Wolf.

BLITZER: Sounds like a new reality show in the works.

ZAHN: It is.

BLITZER: The Donald versus Martha. Who knows?

ZAHN: What's behind the war of words. Stay tuned.

BLITZER: Thank you, Paula.

Still ahead, hotshots. Plus, Jack Cafferty and your e-mail. You'll want to hear this. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Here's a look at some of the hotshots coming in from the AP. Spain, smoke pours from an industrial building where a bomb exploded, causing serious damage, but no injuries.

Tehran, demonstrators burn the U.S. flag in front of the Italian embassy. They were protesting against an Italian government minister that wore a T-shirt with a caricature of the Prophet Mohammed. In Nicaragua, women who have just given birth share single beds. A strike by public health workers has left hospitals in bad shape.

Shanghai, the godfather of soul, James Brown, performs at his first concert in China. Some of today's hotshots.

Do all of the major e-mail services allow you to use words like "Allah" and "bin Laden" on your screen name? Our Internet reporter Jacki Schechner has the answer -- Jacki?

JACKI SCHECHNER, INTERNET REPORTER: Wolf, there was a time that you couldn't register this name because it had the word "Allah" in it. Now, Yahoo! monitors for abuse online, and they say that "Allah" was being linked with defamatory language. It's now back in circulation, but there are some other names that you still can't use.

For example, "Osama" or "bin Laden." We tried them out today. Now, Yahoo! will not confirm that these names have been taken out of circulation. They say it is possible. They also say that it is possible that these screen names have just been picked by other people.

But I've got to tell you, we tried dozens and dozens of them, and we picked some pretty obscure combinations. None of them seemed to be available. Now, as for Google, Gmail, Hotmail, MSN, there didn't seem to be any limitations there. And as for AOL, which also a Time-Warner company like CNN, they say they have banned "bin Laden" since after 9/11. It was linked to abuse back then -- Wolf?

BLITZER: Jacki, thanks very much.

Let's go to Jack in New York -- Jack?

CAFFERTY: Some Arabs in this country and overseas say that it's bias and bigotry, not security concerns, at the root of the outrage over this port deal. The question is, is it fair to characterize the criticism of the deal as anti-Arab?

Annette in Hollywood, Florida: "Yes, it's anti-Arab. But it was 19 Arabs who were responsible for 9/11, the USS Cole bombing, Madrid and Britain bombings, et cetera. More importantly, it would be anti- responsible were we to allow this fiasco to take place."

Scott in Billings, Montana: "It's fair to say the Arab world is anti" -- "Is it fair to say the Arab world is anti-West because of the uproar over a bunch of cartoons. It cuts both ways."

Myron in Scottsplains, New Jersey: "If I remember correctly, there were Arabs celebrating and dancing in the streets after 9/11. This issue isn't anti-Arab. It's anti-terrorist. Perhaps if the Arab communities around the world spent more time policing themselves and joining in the fight against terrorism, we might be more willing to have them as business partners."

Frank -- Pat in Finksburg, Maryland: "Why don't you ask the survivors and families of people murdered on 9/11 if this is discrimination against the Arabs? I'm sure they'd be more than happy to respond."

John in Santa Barbara: "I think if we kill the UAE deal, it'll look like the U.S. is paranoid and racist. Dubai and the UAE are a good sign that there's hope for the future in the Middle East."

And Tim in Wisconsin points out, "The good news is we all suddenly forget the vice president shot someone last week. How time flies."

BLITZER: It seems like so along. You're obsessed last week on that, this week on this. Who knows what the big story next week is going to be, Jack.

CAFFERTY: You can bet that somebody will provide something. They always do.

BLITZER: It never fails. Thanks, Jack. See you tomorrow.

That's it for us. I'm Wolf Blitzer in THE SITUATION ROOM. We're on weekdays 4:00 to 6:00 p.m. Eastern, back at 7:00 p.m. Eastern.

Let's head over to "PAULA ZAHN NOW." Paula standing by in New York -- Paula?

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com