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The Situation Room
Israeli Shipping Line Endorses Controversial Ports Deal; Bush Approval Ratings Low; Landmark Nuclear Agreement Reached with India; Schumer Reacts to Israel Firm's Support of Port Deal; Clinton vs. Clinton
Aired March 02, 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 now in THE SITUATION ROOM, where new pictures and information from around the world are arriving all the time.
Happening now, a surprising endorsement of the Dubai port deal. Our exclusive report on an Israeli firm's stand on security questions. It's 4:00 p.m. here in Washington. How are the critics of the deal responding to this newest twist in the ports storm.
Also this hour, port and the president. Are Americans angry about the Dubai deal and are they taking it out on Mr. Bush? We'll unveil some brand new poll numbers just moments from now.
And Clinton versus Clinton. Is the port deal coming between this political power couple. We'll take a closer look at their dueling takes on this still unfolding controversy. I'm Wolf Blitzer. You're in THE SITUATION ROOM.
Up first this hour, a CNN exclusive. The chairman of Israel's largest shipping line tells me he's strongly endorsing the takeover of six major U.S. ports by a state-owned Arab firm. The endorsement may carry some weight, especially with some of the critics who say that the deal is not good for Israel because of the Arab boycott against Israel and because it comes despite this Arab boycott of the Jewish state.
(BEGIN VIDEOTAPE)
BLITZER (voice-over): In a letter to Democratic Senator Hillary Clinton of New York, Idan Ofer, the chairman of Zim Integrated Shipping Services Limited, says he wants to put his support for the deal on the record.
He says Zim has been pleased to have D.P. World, in his words, "as our business partner, supporting our operations by providing services at key marine terminals, included in the United Arab Emirates."
He goes on to write this -- and let me read it specifically from his letter -- "As an Israeli company, security is of the utmost importance to us, and we require rigorous security measures from terminal operators in every country in which we operate, but especially in Arab countries, and we are very comfortable calling at D.P. World's Dubai ports. During our long association with D.P. World, we have not experienced a single security issue in these ports, or in any of the terminals operated by D.P. World."
After receiving a copy of the letter, I called Mr. Ofer in Tel Aviv. He confirmed its authenticity, and explained his motivation in sending the letter to Senator Clinton. He said he was now planning to write a similar letter to Senator Chuck Schumer, also from New York.
He was anxious both of them knew of Zim's longstanding relationship with D.P World, which he says maintains the, quote, "highest security standards in its terminals worldwide."
A spokesman for Senator Clinton says this letter was one of scores received on both sides of the ports issue, but adds, "we would prefer to learn about the security impact of this deal through the full 45-day investigation mandated by law."
Could or should the Arab boycott issue still sink the ports deal? The reality is that Israeli goods can be found throughout the Middle East. Zim subsidiaries send ships into Dubai's ports with other countries' flags to skirt the boycott. And the reality is that a top executive ...
(END VIDEOTAPE)
BLITZER: And there's another reality as well, namely that top executive from a state-owned Arab company can call an Israeli shipping line "a very sound customer." That would be Ted Bilkey, the chief operating officer of Dubai Ports World, who told me last week of this excellent relationship he said that D.P. World has had with Zim for many years.
Coming up this hour, my interview with the leading Democratic critic of the Dubai port deal, Senator Chuck Schumer of New York. That's only minutes from now here in THE SITUATION ROOM. I'll ask him how he feels on this latest twist in this entire controversy.
Let's get some more now on this massive Israeli shipping company, Zim Integrated. Digging online is our Internet reporter, Jacki Schechner -- Jacki.
JACKI SCHECHNER, CNN INTERNET REPORT: Wolf, it is, in fact, one of the largest container shipping companies in the world. Zim has been around since 1945 actually before the state of Israel even existed. It has a long history, has been owned in much part by the state of Israel for many years.
It became a private corporation in 2004 when most of its shares were purchased by Israel Corporation. This is a major Israeli holding company. You can see where it also has holdings in chemicals, telecom, oil and energy, and technology.
As for the letter where it talks about its affiliation, it's business with D.P. world, we did a little cross checking and found that it does, in fact, use the terminals that you can find in Latin America in Venezuela, In Djibouti in Africa, in Romania in Europe.
Those are just some of the places where they work together. We also wanted to show you that you can see this letter in full, online at CNN.com/situationreport, and there you can read it for yourself -- Wolf.
BLITZER: Thanks very much, Jacki, for that. We're going to have a lot more on this story. Our Brian Todd is working on the developments involving Senator Clinton and former President Clinton. Do they disagree about this deal?
Mary Snow is up in New York. She's getting reaction from the pro-Israeli community, including from Abe Foxman over at the Anti- Defamation League, who only yesterday came out strongly against the deal. We're following this story. And once again, we'll be speaking with Senator Chuck Schumer coming up this hour.
The port deal has been a thorn in the president's side now for weeks. And now there is new evidence of his political wounds. We have some brand new poll numbers we want to show you right now.
Our senior political analyst Bill Schneider has been crunching the numbers -- Bill.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, our new poll is out, and if you've been following the polls lately, the question you're likely to ask is how bad is it?
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): By last November, President Bush's numbers were way down. Sixty percent of Americans disapproved of the job the president was doing. So, he barn stormed the country to sell his victory plan for Iraq and his energy independence plan and his commitment to national security. The president's numbers went up a bit for awhile.
Now they're back down, down to 60 percent disapproval. Only 38 percent give President Bush positive marks. The negative views are more intense. More than twice as many Americans strongly disapprove than strongly approve of President Bush's job performance.
Three different news stories have driven Mr. Bush's numbers down. The situation in Iraq is deteriorating. Nearly three-quarters of Americans expect a major civil war there in the next year. Nearly two-thirds want to see U.S. forces start to withdraw.
Allowing a company owned by an Arab government to operate U.S. ports seems to defy common sense. The public opposes the deal by nearly four to one.
PROF. ARTHUR WALDRON, UNIV. OF PENNSYLVANIA: This is not an issue of xenophobia or race, this is a substantive issue of national security.
SCHNEIDER: Americans overwhelmingly agree. Result? President Bush's rating on terrorism is down seven points. He's lost his strongest issue. Now we have the videotapes of disaster officials warning President Bush about the dangers posed by Hurricane Katrina and the president's response.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I want to assure the folks at the state level that we are fully prepared.
SCHNEIDER: Now, nearly 60 percent say President Bush cannot manage the government effectively. His image of competence is gone.
BUSH: If I worried about polls, I would be -- I wouldn't be doing my job.
SCHNEIDER: But the public is worried that he's not doing his job.
(END VIDEOTAPE)
SCHNEIDER: The president is getting 10 percent support from Democrats, and only 27 percent from independents. Now, Republicans still support their president, but they're about all he's got -- Wolf.
BLITZER: Getting back to this story we reported, the chairman of Zim, the Israeli shipping line, telling me earlier today, writing a letter to Senator Clinton. Now he says he's also writing a letter to Senator Schumer in support of Dubai Ports World taking over these ports in the United States, based on his own track record in dealing with this company.
How do you think that's going to play out politically? What impact, if any, do you think that will have on the debate here in the United States?
SCHNEIDER: I'm not sure, because to a lot of Americans, this is an American issue involving America's national security, and they may hear about this and they say, well, it's one shipping company vouching for another shipping company.
BLITZER: Bill Schneider reporting for us. Thanks, Bill, very much.
And we have more telling poll numbers on this port controversy. Take a look at this. Seventy-one percent of those surveyed say it's OK for Britain to run cargo operations at U.S. ports, but just 45 percent feel that way about France. And that's only slightly higher than 40 percent, who approve of Arab countries running American ports. Less than a third, 31 percent, say they would be comfortable with China operating ports here in the United States.
We also asked Americans what's driving the port controversy. Take a look at this. Most, 69 percent, say there has been an uproar because the port sale is not in the best interest of the United States. Twenty-two percent say discrimination against Arabs is to blame.
Stay tuned to CNN day and night for the most reliable news about your security. Time now for Jack Cafferty and "The Cafferty File," Jack joining us from New York. Hi, Jack.
JACK CAFFERTY, CNN ANCHOR: Hello, Wolf. It would be an understatement to say that things have not been exactly rosy for team Bush of late. A lot of people unhappy about how the administration is handling some big issues -- the ports deal, Katrina, the NSA domestic spying program, the war in Iraq, oh yes, and the vice president shooting that guy in the face with a shotgun.
And now new poll numbers, as Bill was just telling us, show that the president's overall approval rating is at the lowest point of his five years plus in office. Americans are overwhelmingly opposed to this ports deal. His rating on terrorism is down. That used to be his act in the hole. Now he's losing his grip on that issue. So in the wake of the ports deal, you got members of the president's own party running the other way to distance themselves from him as the mid-term elections approach.
The question is this, and it's something that happens to every American president at some point during his second term in office. When will President Bush become a lame duck? E-mail us at caffertyfile@CNN.com, or go to CNN.com/caffertyfile -- Wolf.
BLITZER: Good question. Thanks very much, Jack. We'll get back to you very soon.
Coming up, more on the president's poll numbers and the damage from the port storm. What, if anything, can Mr. Bush do to turn things around? We're going to try to find out in our "Strategy Session."
Deadly blasts in Pakistan just two days before the president arrives there. We'll have the latest on the attack and what Mr. Bush accomplished today in India.
Plus, the former FEMA director Michael Brown. Does a newly released video of a Bush briefing on the day before Katrina hit vindicate Mr. Brown? He's going to be here live in THE SITUATION ROOM, 7:00 p.m. Eastern. It's coming up later. Stay with us.
(COMMERCIAL BREAK)
BLITZER: Welcome back. President Bush says a terror attack in Pakistan today will not deter him from traveling there later this week. A pair of explosions ripped through a hotel parking lot near the U.S. consulate in Karachi. At least four people were killed, including an American diplomat. Mr. Bush spoke about the blast in India, where he engaged in tough negotiations over a landmark nuclear agreement.
Our White House correspondent Elaine Quijano is traveling with the president.
(BEGIN VIDEOTAPE)
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (on camera): President Bush is moving ahead with a planned visit to Pakistan and White House officials no say that Mr. Bush will be overnighting there. That is a detail that officials did not release earlier, officials citing security concerns as the reason why they were so purposely vague about the president's trip to Pakistan.
Now the president says that despite bombing there, he will not be deterred from visiting that country.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It's important to talk with President Musharraf about continuing our fight against terrorists. After all, he has had a direct stake in this fight. Four times, the terrorists have tried to kill him.
QUIJANO: So, President Bush trying to ensure that Pakistan remains a strong ally in the war on terrorism. In the meantime, here in India, President Bush and the Indian prime minister announced a deal on civilian nuclear energy.
Now, under this deal, the United States would share a nuclear know-how and fuel with India. But critics say that this is something that rewards bad behavior, essentially. That bad behavior -- for a long time, India has said it will not sign on to the Nuclear Non- Proliferation Treaty.
Nevertheless, the Bush administration believes the deal is progress. The administration saying that it will bring India closer to where other countries are on the issue of non-proliferation. At the same time, officials also saying that Americans can benefit from this deal. They believe that it will, in fact, relieve some of the global demand for oil and perhaps have an impact on some of those high energy prices that Americans have been facing.
Elaine Quijano, CNN, New Delhi, India.
(END VIDEOTAPE)
BLITZER: Elaine, thank you very much. Let's check in with Zain Verjee at the CNN Center in Atlanta for a closer look at other stories making news -- Zain.
ZAIN VERJEE, CNN ANCHOR: Wolf, more than two dozen people are dead after another day of violence in Iraq. In Baghdad, gunmen ambushed an a convoy carrying a top Sunni politician and killing his body guard. It comes as political leaders jockey to form a national unity government.
And at least 14 more people died in strikes in Baghdad, Ramadi and Mosul, while in northern Iraq, gunmen stormed a security checkpoint, killing ten people. Violence sweeping the country since an attack on a Shia shrine last week. It has claimed more than 400 lives.
In Washington, there's increasing concern over Iran. State Department officials saying that they're setting up a new office that's going to be dedicated solely to U.S. policy toward Tehran. A principle mission of the office will be to promote democratic transition in Iran. In Oklahoma, at least seven firefighters are recovering from injuries as wildfires sweep the state. At least one of the injured are said to be in critical condition with severe burns. Officials say they've contained the largest of the blazes, but firefighters are still on the scene in at least two locations. In the past two days, some 8,000 acres have burned. As many as 400 -- excuse me, 40 homes have been destroyed. Authorities say that arson is suspected in at least one area.
More than six months after Hurricane Katrina swept through New Orleans, the gruesome search for bodies is resuming in the city's devastated Ninth Ward. Authorities say after long delays, FEMA has now released the funds for search teams and cadaver dogs. It's believed that there are substantial number of bodies still buried under the debris there. Hundreds of people are listed as missing in the city -- Wolf.
BLITZER: Zain, thanks very much. Still ahead here in THE SITUATION ROOM, a leading Democratic critic of the Dubai port deal, Senator Chuck Schumer of New York. Is he swayed at all by an Israeli firm's support of the deal?
And is the port storm dividing Hillary and Bill Clinton? We're going to take a closer look at their positions and their possible motivations.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Support from an unlikely source. Our lead story, CNN has learned the chairman of Israel's largest shipping line is strongly endorsing the controversial Dubai port deal and he's hoping to let critics of the deal know Israel is confident that D.P. World is rigorous about security.
(BEGIN VIDEOTAPE)
BLITZER: And joining us now is the senior senator from New York, Chuck Schumer, Democrat. Senator, thanks very much for joining us. There had been a lot of opposition expressed by some really strong supporters of Israel and you're one of the strongest supporters of Israel, because United Arab Emirates participates in this economic boycott of Israel. Dubai Ports World is owned by the United Arab Emirates.
Yet today, we learned that the chairman of the board of Zim, the largest shipping company in Israel says they've had an outstanding relationship with D.P. World and he gives them a glowing vote of confidence. What do you make of this latest twist in the story?
SEN. CHARLES SCHUMER (D), NEW YORK: Well the chairman of the board of Zim has to represent his shareholders. We have to represent security in America. And so it really doesn't matter to me what Zim says. And frankly, the fact that this company has taken part in the Israeli boycott, I don't like it. But that's hardly a paramount concern. The No. 1 issue here is the security of our homeland, the security of our ports. And unless they can meet that standard, no matter what their position is on a whole range of other issues, they shouldn't be allowed here.
BLITZER: Idan Ofer, who is the chairman of Zim says nobody is more concerned about security than Israel and that the Israeli shipping industry is clearly very, very vulnerable.
Here is what he writes in his letter to Senator Clinton. He told me he's also writing a similar letter to you. He writes, "For the past many years, we have been pleased to have D.P. World as our business partner, supporting our operations by providing services at key marine terminals around the world, including in the UAE. D.P. World has been an industry leader with regard to security and works closely with us on an on-going basis to maintain the highest security standards in all its terminals around the world." He says Zim has never had a problem directly or through its subsidiaries with security as far as D.P. World is concerned.
SCHUMER: Well again, the bottom line is that we, in America, have to make our own, independent assessment of security. They may have a good relationship with D.P. World, but there are too many unanswered questions to let this deal go forward.
And we need a thorough investigation. I'm sure that the head of Zim can write the CFIUS Committee and give them input. I put more faith in the port authority of New York, which handles containers and ships and companies of all different stripes and they have real concerns here.
BLITZER: The Coast Guard admiral in charge of port security was in THE SITUATION ROOM with me this week and I had this exchange with him on the purchase of this British firm by this Dubai-based firm. Listen to this.
(BEGIN VIDEO CLIP)
BLITZER: Can you assure the American public that the threat level will not increase as a result of this Dubai firm taking over the British firm's operations?
CRAIG BONE, COAST GUARD ADMIRAL: Yes. I can tell you that the measures that we put into place will assure that.
(END VIDEO CLIP)
BLITZER: That's rear admiral Craig Bone of the U.S. Coast Guard in charge of Coast Guard security. He's not a political guy, he's a professional.
SCHUMER: Well the bottom line is that, again, we want a full 45- day and thorough investigation done independently. The Coast Guard initially said they couldn't determine whether D.P. World was secure or not.
Then, in ways that I'm not aware of, they change their mind. This should all go before this investigation. This investigation should be made fully available to Congress, all the non-classified parts of the public and then there should be a vote.
And we'll determine one way or another. No one has said or -- I certainly haven't said how I'm going to vote. I'm dubious of the deal, that's for sure. But we all want to get an investigation that is impartial and thorough, unlike the first one.
We want to get the results of it and then have Congress have a right to vote up or down because after all, the president's already said he's for it. It's sort of like saying -- putting the verdict before the trial.
Security has to come first. The CFIUS Committee, which does these investigations, has all too often let economic considerations, diplomatic considerations, trump security. And we are going, Democrats and Republicans, are going to remain adamant that security must remain No. 1. And we're going to watch this investigation like a hawk.
BLITZER: One final question, Senator.
SCHUMER: You know, Wolf, everyone can swirl around with their own little interests here. Again, the Coast Guard first said it wasn't adequate in terms of their knowledge. Now they say it is. Did they get the command -- did the chain of command tell them to change their mind? Who knows? We need all of this to come out.
BLITZER: One final question, we're almost out of time. The other day you suggested you had some information that customs also expressed alarm bells about this deal. What can you tell us about that?
SCHUMER: Well we heard from a variety of sources that that was the case. Have not yet been able to confirm it so we're still looking into it.
BLITZER: Senator Schumer, thanks very much for joining us.
SCHUMER: Thank you, Wolf.
(END VIDEOTAPE)
BLITZER: And coming up, the president's headaches from ports to the polls. Can he make things better? Will it get much worse? Paul Begala and Torie Clarke weigh in in our "Strategy Session."
And the former FEMA chief, Michael Brown, speaking out live here, 7:00 p.m. Eastern in THE SITUATION ROOM. Does a newly-released video back up his complaints about his former boss's response to Hurricane Katrina. Michael Brown joins us live in THE SITUATION ROOM, 7:00 p.m. Eastern.
(COMMERCIAL BREAK)
BLITZER: There's been bipartisan outrage over the Dubai port deal. But two of America's most powerful Democrats find themselves on the opposite sides of the controversy. Apparently, at least. Our Brian Todd has been looking into this situation, mainly the situation involving Bill and Hillary Clinton.
Brian, what are you picking up?
BRIAN TODD, CNN CORRESPONDENT: Well, Wolf, we are picking up new information that is emerging right now, giving some interesting perspective to Hillary Rodham Clinton's vocal opposition to that Dubai port deal.
(BEGIN VIDEOTAPE)
TODD: As long as we've known about it, Hillary Rodham Clinton has hammered against the deal against Dubai Ports World to take over operations of major American ports.
SEN. HILLARY CLINTON (D), NEW YORK: If 9/11 was a failure of imagination and Katrina was a failure of initiative, this process is a failure of judgment. In a post-9/11 world, port security is too important an issue to be treated so cavalierly.
TODD: But CNN has learned that at the time Senator Clinton first began her public opposition to the deal, officials from Dubai Ports World called her husband, Bill Clinton, while he was in Pakistan in mid-February. A spokesman for the former president said, quote, "He told them that he didn't know the detail about the deal, but that he felt that any ports deal should be subject to the full scrutiny process and should also take steps to make ports safer."
But Bill Clinton's ties with the Arab emirates go beyond that phone call. CNN has obtained a Senate financial disclosure form for Hillary Clinton for 2002. It says Bill Clinton received $450,000 for two speeches he made in Dubai that year.
UNIDENTIFIED MALE: Bill Clinton has been a very active and very successful public speaker around the world since he has become an ex- president.
(END VIDEOTAPE)
TODD: And experts point out that so have other former presidents. But two senior officials in the government of Dubai tell CNN that that government also donated half a million dollars to Bill Clinton's library, information that is not denied by the Clinton spokesman.
Those officials in Dubai say that Clinton has visited that emirate four times in the past three years. The Clinton spokesman said that's about right. We called Hillary Clinton's office to see if there was any disconnect over the ports deal between her and her husband. They referred us to Bill Clinton's office.
His spokesman said he didn't see how the former president's speeches and trips to Dubai were relevant to the story. The spokesman said the former president supports his wife's efforts to block the deal, and the two of them are both in lockstep on this issue -- Wolf?
BLITZER: Thanks very much, Brian, for that.
In our strategy session today, a letter from Israel's largest shipping firm endorsing the Dubai-based company trying to take over operations of the six major U.S. ports. Does this help diffuse at least some of the opposition to the deal? Can the American public be convinced this isn't a security threat?
Joining us are CNN political analyst, Democratic strategist Paul Begala and former Pentagon spokeswoman Torie Clarke. I want to get to the Israel element in a second, but you know Hillary Clinton, you know Bill Clinton. You've worked for both of them. Is there disconnect you see here between the two of them?
PAUL BEGALA, CNN POLITICAL ANALYST: I don't see it on the ports deal. I mean, President Clinton hasn't spoken out much about it. To the extent he has, he's criticized it. Hillary Clinton, who is a senator and represents New York, where the ports could be affected, has spoken out. I don't see a problem.
The interesting thing politically, though, is if there is any tension, to see where Hillary's going. She's going to put what she thinks is best for New York and the United States first, and whatever speeches that her husband gives come second.
So I think to the extent there's a political issue, it sort of resolves in Hillary's favor in this deal. And I'm definitely with her. I don't think the president disagreed with her. I haven't talked to him about it, but it seems to me they are pretty much on the same page.
BLITZER: Husbands and wives are entitled to disagree from time to time on important issues.
TORIE CLARKE, FORMER PENTAGON SPOKESWOMAN: Her husband is going to be one of her strengths and one of her weak necessaries as she tries to be president of the United States. All the strengths are obvious. Boy, think about having him out campaigning for you. But things like this get very real and very serious and give the opponent lots of ammunition.
And it sounds like President Clinton's involvement with Dubai goes further than what we've seen thus far, trying to get one of your pals, Joe Lockhart, hired by Dubai to help them on their efforts going forward. It just makes things very, very complex, very, very time consuming. We know it has consumed Hillary Clinton's staff for the last 24, 48 hours.
BEGALA: The key is, does she put her work first and her husband's finances second? The answer is clearly yes. This cannot be -- Bill Clinton is probably not going to get a lot more speeches in Dubai after his wife has worked to try to kill this deal. And good for her. I'm proud of her for doing it this way.
BLITZER: Let's talk a little bit about this latest twist, mainly this chairman of the board of Israel's largest shipping line, Zim, weighing in. Listen to what Howard Dean, chairman of the Democratic Party, said here in THE SITUATION ROOM yesterday. Listen to this.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DEMOCRATIC NATIONAL COMMITTEE CHAIRMAN: In the case of Dubai, I believe that the United Arab Emirates is an ally in the war on terror for most of the time. But the fact is, this company boycotts one of our most important allies, which is Israel.
(END VIDEO CLIP)
BLITZER: Today we've learned that that's not necessarily the case. Zim, an Israeli company, privately owned Israeli company, does extensive business deals with Dubai Ports World. And the chairman told me earlier this morning in a phone conversation he thinks this company is great.
BEGALA: This does blow a hole in that argument of the Democrats, and many Republicans who have raised this notion. Clearly, the UAE -- I saw your reporting on this, Wolf -- has been doing business with Israel despite the boycott. It's an under the table thing. It happens, apparently, all the time.
But I have a suggestion. Why don't we let the United Arab Emirates run the Israeli ports for five or ten years and see how that works out. Why don't we call Zim Shipping and say, "OK. They're so great? Let them run your country's ports for a while."
I think it's an outrage to have any foreign country controlling American ports. If they want to do that in Israel, tell the guy who runs Zim to let the UAE run his ports instead of ours.
BLITZER: Let him go to Haifa.
BEGALA: Yes, go to Haifa.
BLITZER: All right. What do you think?
CLARKE: Ports are important. Foreign companies aren't controlling the ports. This continues to be a case where people get hysterical every day without getting the facts.
What's really disturbing -- and there are no profiles in courage in Congress on this one on either the Republican or Democratic side from what I've seen -- is that they're learning the facts, and they know the facts, but it has been such great political opportunity for them, they continue to pound it home every single day. It's terrible. People deserve a lot better. It's terrible behavior.
BLITZER: Here's the American republic responding to this port deal in our CNN-"USA Today"-Gallup poll that just came out. The proposed sale of cargo operations and ports to an Arab company, 17 percent say they favor it, 66 percent oppose it, 17 percent unsure. You're a former Pentagon spokeswoman. Only 17 percent of the American public think this is a good deal. CLARKE: I know. It's terrible. The American people deserve better. They deserve to have gotten a better, clearer, more accurate picture of what this deal is about. And then they might feel differently about it.
You know, I can forgive the American people because they're busy. They've got things to do in their lives. It's not their responsibility to learn the facts. It is their elected representative's responsibility, and they're shirking it.
BEGALA: They are learning the facts. I was watching THE SITUATION ROOM yesterday, as I always do. I saw you interview Peter King. Peter King's a Republican congressman. He's the chairman of the House Homeland Security Committee. And he said -- I wrote it down -- there was no investigation into terrorism whatsoever.
He's been checking up on what this CFIUS, this Committee for Foreign Investment in the United States, actually did review. And what Congressman King is learning is they didn't even look at whether terrorism would be affected whatsoever. Now, that's an outrage. So the administration did not do its job. And, to Peter King's great credit, Republican congressman, the Congress is going to do its job. And I hope they block thing.
BLITZER: And he's a Republican. He spoke to our Ed Henry here yesterday, 24 hours ago. He said he's gone back and he's checked, and there was no serious review of terror connections, potentially, between this company and Al Qaeda.
CLARKE: Again, respectfully disagree. And choices of words are very, very important. But this process, the CFIUS process, is very comprehensive. It's very complex. It's designed to resist parochial congressional pressures.
They did look at things in the context of post-9/11 concerns, and they did address some of the concerns that were raised, whether it was by the Coast Guard or others. And they still decided it was the appropriate thing to go forward. Could they have handled the information strategy on this a lot better? Absolutely.
BLITZER: Just to be clear, you think this is a deal worth going forward with?
CLARKE: Yes.
BLITZER: And you speak with your own Pentagon hat?
CLARKE: Yes.
BLITZER: Your own security hat?
CLARKE: Yep.
BLITZER: Your own political hat? You have no doubt about it?
CLARKE: Absolutely. BLITZER: Because of, what, the relationship the United States has with the United Arab Emirates since 9/11? Because before 9/11, it was not necessarily all that great.
CLARKE: Combination of factors. First of all, this is an industry that was globalized a long time ago. And if you've got problems with this foreign company or country, then you should have had problems with the Brits and the Singaporeans and others.
So people need to just get into the 20th century. And again, I'll go back to what I said before, if you understand the facts, the deal makes a lot more sense. What really, really offends me is the lack of responsibility by so many people in this town.
BLITZER: Paul, I've got three poll numbers. I'm going to show them to our viewers back to back, and then we're going to discuss. How is Bush handling his jobs as president, 38 percent of the American public approves, 60 percent disapprove. This is our new CNN-"USA Today"-Gallup poll.
What about his approval rating about how Bush is handling terrorism? Forty-seven percent now approve, that's down from February, only a few weeks ago, 54 percent, down seven points in a few weeks. But look at this number. This is going to be upsetting to you. Who will do a better job protecting the country from terrorism? Republicans get 45 percent, Democrats get 40 percent. Why are the Democrats still below the Republicans on this issue?
BEGALA: Depends on how you compare it to. A couple of months ago, they were 35 points, 40 points behind. Now they're essentially tied. They're five points down. What this tells you is something that's actually pretty dire for America, more importantly, also for the president's political interest. And that is, this is a failed presidency in the eyes of the American people.
My fear, 1,050 days left in this term, the American people are just shutting down on Mr. Bush. In our poll that's out today, the majority of Americans say President Bush, our president, is neither honest nor trustworthy.
And that's before we've learned that he didn't tell the truth about the levees -- this videotape that we just found when he said nobody could anticipate the levees would breach. He had just been told that they would and could have been breached.
So I think this is awful for the president. And I suppose his only -- he wouldn't listen to me, but his only hope -- he's got to fire a whole lot. Fire everybody and bring in some new people. You can't fire the president. He's got a four-year no-cut deal. It's a failed presidency. It's over.
BLITZER: There's been this argument -- Ken Duberstein, the former White House chief of staff under Ronald Reagan has said, "You know, you get burned out." You worked in this administration. It's a long, long day these guys put in. Are they tired right now? Are they not thinking as sharply as they were on day one? CLARKE: It's just sort of classic political stunts very often, just to throw people overboard for the sake of throwing people overboard and to demonstrate some change. Fortunately, the president is not as obsessed with poll numbers as people like us are.
What he's obsessed with is trying to get a job done in very, very difficult times. What he needs to do is take stock of what are the big challenges for the next few years, because he's around for the next few years. And figure out, does he have the right team in place to get the job done? In some places, I think he does. In some places, maybe not.
BLITZER: As a Democrat, I want him to keep this bunch of idiots and bumblers in there. Because it's killing the Republicans. And Democrats are going to swamp the midterm elections. But I'm an American first and a Democrat second. It's in America's interest -- I'd love to fire the president, OK? But we tried in '04, and the American people wanted to reelect him. I have to respect that for four years.
But he ought to be cleaning house and bringing some new talent. And if he's not up to the job, he ought to be bringing some people in who are. But I wear two different hats. If I'm honestly trying to be on the level and not just being a partisan on TV, I'm begging him to clean house and to fire these jokers and hire some competent people.
BLITZER: We'll leave it there. Paul and Torie, thanks very much. A good, serious discussion.
Coming up, cruise lines, Hurricane Katrina, the president's brother under fire. We're going to tell you why Governor Jeb Bush is being blasted by a Democrat in Congress.
And Arnold Schwarzenegger's fights. His reelection battle is rocky, and he's apparently getting involved in an even wilder kind of slugfest. We're going to tell you what's going on because you're in THE SITUATION ROOM.
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BLITZER: Did Florida Governor Jeb Bush help arrange a post- Katrina contract for Carnival Cruise Lines? One congressman is calling the deal a boondoggle, and he's using ex-FEMA chief Michael Brown's email as evidence. Our Internet reporter Abbi Tatton has the story -- Abbi?
ABBI TATTON, CNN INTERNET REPORTER: Wolf, you can read this entire email exchange online between Michael Brown, Governor Jeb Bush, and an official from Carnival Cruise Lines by the name of Rick Cooper. Look at this from the released emails. Two days after the storm, Jeb Bush responds to an email from Cooper at Carnival Cruise Lines, and he copies Michael Brown saying, "I'll pass this on to Mike Brown. Mike will respond quickly."
And he did. He responded two and a half hours later, in fact, saying, "I think this is a great idea. Someone will contact you directly." Florida Democrat Henry Waxman has asked for an explanation. He's written a letter to Governor Jeb Bush's office.
He points out in the letter that Rick Cooper is a Republican donor. Jeb Bush's office has responded, saying any suggestion that the governor intervened is completely unfounded. They said they will be responding to congressman Waxman's letter. We posted all these emails online for you to read at CNN.com/situationreport -- Wolf?
BLITZER: Thanks very much, Abbi, for that.
On our political radar this Thursday, Congressional Democrats appear to be enhancing their edge over Republicans eight months before mid-term elections. In our new poll, 53 percent of registered voters nationwide say they favor Democrats for Congress. That's up three points over the past three weeks. Thirty-nine percent of those surveyed say they favor Republicans for Congress. That's down four points since February.
The Mississippi governor, Haley Barbour, says he'll probably sign a bill to ban most abortions in his state if the legislature approves it. The House is expected to vote next week on the bill, which allows abortion only to save a woman's life with no exception for rape or incest. A similar abortion bill was passed by the South Dakota legislature last week. It's designed to be a direct challenge to Roe vs. Wade. But for now, it's still sitting on the governor's desk.
A new poll drives home Arnold Schwarzenegger's uphill reelection battle. Nearly half of likely California voters surveyed, 47 percent, say they're not inclined to vote for the Republican incumbent this fall. Still, the field poll shows Schwarzenegger running competitively with two lesser-known Democrats who want to challenge him, state treasurer Phil Angelides, and state controller Steve Westley.
Governor Schwarzenegger may be giving his critics some new ammunition. The "San Francisco Chronicle" reports Schwarzenegger will attend a controversial gladiator fight in Ohio this weekend.
The pay-per-view sport also known as cage fighting has been blasted by Senator John McCain. He likens it to human cockfighting, calls it barbaric. Schwarzenegger signed legislation in September paving the way for gladiator fights to be legal in California. The first state-sanctioned fight is scheduled in San Jose next week.
Up next, the color of money. We'll give you the first glimpse of some new $10 bills.
And in our 7:00 p.m. Eastern hour here in THE SITUATION ROOM, the former FEMA director, Michael Brown. We'll get his take on some newly released video, whether it shows the president ignored would warnings about Hurricane Katrina. Michael Brown live here in THE SITUATION ROOM, 7:00 p.m. Eastern.
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BLITZER: Let's check back with Zain Verjee in the CNN Center in Atlanta for a closer look at other stories making news. Hi, Zain.
VERJEE: Hi, Wolf. Just a short while ago, senators overwhelmingly approved the compromise to renew the Patriot Act. Some provisions of the law have been scheduled to expire next week. Supporters say the new legislation better protects privacy rights.
The White House applauded today's vote, saying the Patriot Act is a key tool in the fight against terror. The House is expected to approve the new legislation next week, sending it to the president for his signature.
The West Coast is getting socked with another dose of rain and snow. Heavy snow warnings are in effect in some mountainous regions, and forecasters are predicting accumulations up to 15 inches. Another wave of storms is expected to move in from the Pacific Ocean tomorrow.
This fast-moving storm is dumping snow, sleet, and freezing rain across much of the Northeast. The band of wet weather stretches from Pennsylvania to Massachusetts. It's expected to move offshore overnight.
And you might do a double take if you need change for a 20 tonight. There's a new $10 bill, and it's just gone into circulation. It features a redesigned picture of Alexander Hamilton, and parts of the bill actually change color when you tilt it a little bit. Officials say the extreme makeover was prompted by more high-tech counterfeiters. Don't worry. The old $10 bill is still worth, well, $10.
And a new study is out about children's TV. And it confirms what many parents already believe, that kids programs are filled with violent, disrespectful and aggressive behaviors. The study itself was commissioned by a conservative television watchdog group. It found an average of eight violent incidents on children's TV shows per hour -- Wolf?
BLITZER: Zain, thanks very much for that.
Still to come, is President Bush a lame duck? You've seen him in action, and you've seen our new poll numbers. Now you decide. Jack Cafferty will be back momentarily with your email.
And the Katrina response six months later. What's the former FEMA chief Michael Brown saying now? We're going to ask him about the potentially new embarrassment for the president. That's coming up, 7:00 p.m. Eastern right here in THE SITUATION ROOM.
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BLITZER: Here's a look at some of the hot shots coming in from our friends over at the AP, pictures likely to be in your hometown newspapers tomorrow. In Iraq, border guards show off a Saudi prisoner. He allegedly fled to Iraq after Saudi authorities chased him for involvement in a terror attack. In Pakistan, demonstrators dress up like prisoners at Guantanamo Bay to protest President Bush's upcoming visit.
In India, the first lady meets a character on the local version of the "Sesame Street" called Galli Galli Sim Sim. And in Eugene, Oregon, aqua-tots. Look at this. Parents and their babies practice underwater swimming during a group class. Some of today's hot shots, pictures often worth a thousand words.
Jack Cafferty is back in New York with "The Cafferty File" -- Jack?
CAFFERTY: New CNN-"USA Today"-Gallup poll shows President Bush's overall approval rating at 38 percent. It's not very good. It shows Americans overwhelmingly opposed to this ports deal. And members of the president's own party have been distancing themselves from him as the '06 elections get closer. When will President Bush become a lame duck?
Sandy in West Hills, California: "Jack, when will Bush become a lame duck, you ask? When did Katrina make landfall? The end of August? He went lame then. The ports sale crippled him permanently, and the revelation of the Katrina-FEMA briefing tapes put him on permanent life support."
Terry in Bestle (ph), New York: "Never. You just can't handle the fact that he's doing the right thing. You wish he was a lame duck. If anyone's a lame duck, I would have to say that would be you. All you ever do every day is whine about President Bush. That makes you lame. Can't you do any real reporting? Bet you won't air this email. You don't have the guts."
Mike in Amherst, Massachusetts: "Hey, Jack. I don't know about Bush being a lame duck president, but he's been lame since he's been in office."
Debbie in Michigan: "I think it's already happening. Even key members of his own party are no longer automatically agreeing with him. Past supporters, myself included, are waking up to the fact that this president is talking the talk, but not walking the walk."
Eric in Peach Tree, Georgia: "I think he already has. You'd think he'd take notice of the American people's disapproval of the way he's running the country and try to modify his approach."
And Skip in Naples, Florida: "Since Dick Cheney confuses older men with quail, we might want to consider keeping this lame duck thing classified" -- Wolf?
BLITZER: You want to give us some trends, Jack, how they're running these email? Pro-Bush, anti-Bush?
CAFFERTY: 90-10 against.
BLITZER: Really?
CAFFERTY: Yes.
BLITZER: OK.
CAFFERTY: Slightly worse than his approval ratings in the latest public opinion polls.
BLITZER: Jack, we'll get back to you very soon. Thank you very much.
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