Return to Transcripts main page
The Situation Room
Republican Revolt Over Port Deal; Bush Wraps Up Gulf Coast Trip; Former Texas Governor Ann Richards Diagnosed with Cancer; Arizona Governor Dispatches National Guard Troops To The Border; DeLay Wins Texas Republican Primary By Sizable Margin; Possible Split In Democratic Party?
Aired March 08, 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 situations from around the world are arriving all the time.
Happening now, House Republicans pushing ahead with a revolt against the White House. It's 4:00 p.m. in Washington, where lawmakers are working right now on a measure that would block the Dubai Ports Deal. Is the president's position softening under all this pressure?
Also this hour, President Bush accusing Congress of short- changing Katrina victims. It's 3:00 p.m. along the Gulf Coast. Mr. Bush just got another up-close look at hurricane recovery there. We're going to have another live report from the disaster zone.
And three college students now under arrest, accused of setting church fires in Alabama. Authorities shared details of the case just a short while ago. It's 3:00 p.m. in Birmingham. We're going to keep you up to the minute on this developing story.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
We're coming to you from New York City today. We landed here just a short time ago from Dubai, where we've been bringing you exclusive reports on the port security controversy.
In Washington, the port storm right intensifying. House Republicans opposed to the port deal are moving forward with legislation that could lead to a showdown with the president of the United States. Our White House correspondent Suzanne Malveaux is standing by.
First, though, to our congressional correspondent Ed Henry with more on what's happening right now.
Extraordinary developments, Ed?
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right, Wolf. Really a double barreled assault on this port deal right here on Capitol Hill this hour. In fact, right now in the Senate, it's basically paralyzed, brought to a screeching halt because of an unexpected amendment to kill this port deal just brought up minutes ago by Democrat Chuck Schumer. Republican leaders were caught off guard. They've been to what they call a quorum call for some time now, trying to figure it out.
We think Senate Majority Leader Bill Frist is going to use a procedural maneuver in order to try to off that amendment for now, but the pressure is building, because meanwhile, over in the House at this hour, the Appropriations Committee is meeting to deal with a separate amendment that would also kill the port deal.
The bottom line, a senior House Republican told me bluntly, this port deal is dead.
(BEGIN VIDEOTAPE)
HENRY (voice-over): The Republican House speaker Dennis Hastert, making no bones about defying the president.
REP. DENNIS HASTERT (R), HOUSE SPEAKER: I think the House of Representatives is concerned about the safety of the American people. We've been talking about safety since 9/11 and before that. We're talking about safety for our children here, and we have some concerns about the safety of this country and the port deal. And we'll continue to do our best judgment on how to protect the American people.
HENRY: But the Republican revolt against the president is not yet a full-scale uprising. While Hastert is pushing to block the port deal, Senate Majority Leader Bill Frist wants the 45-day review to go forward before considering any legislation in his chamber.
The Republican split was on display in an event celebrating renewal of the Patriot Act. As Hastert answered a question about the port controversy, Frist ignored reporters.
HASTERT: Well, we want to protect Americans. We have a point of view of this ...
UNIDENTIFIED MALE: Senator Frist? Senator Frist?
UNIDENTIFIED MALE: Senator Frist?
UNIDENTIFIED FEMALE: Senator Frist?
UNIDENTIFIED MALE: Senator Frist?
HENRY: A key Republican senator is launching a last ditch effort to save the port deal, and is urging the president to deliver a more forceful public campaign to bring Congress on board.
SEN. JOHN WARNER (R), VIRGINIA: I have confidence that he and others will work in the next few weeks to take -- as we say in the Navy, right this sole ship and put her on an even keel.
HENRY: Hastert denied the House action as motivated by concerns about the mid-term elections, but one top Republican, talking about the president, put it bluntly. Quote, "If this guy was at 65 percent in the polls, do you think this would be happening?"
(END VIDEOTAPE)
HENRY: Senator Warner told me he spoke to DP World, the company involved, three times today and he's rushing to gather legislation that would create a U.S. subsidiary of the company that would actually deal with operating the U.S. ports involved here.
But Warner acknowledged the political reality, saying basically I may be the last man standing here. He knows it may be too little too late. The Democrats are trying to pound away. In fact, they had a closed door meeting today about their agenda.
They're trying to keep their plans for the next few months under wraps, but CNN has learned that one of the things the Democrats are considering is using a rallying cry called "Six in '06," the Senate Democrats. They need to get six seats to take back control of the chamber, but they also want to focus on six issues from now until the election day -- health care, the economy. But at the top of the list, Wolf, security. They want to pivot off the port security issue and say that the president has made the country less safe -- Wolf.
BLITZER: Ed Henry, reporting from Washington, thanks very much.
Just moments ago, President Bush wrapped up his tenth trip to the Gulf Coast since Hurricane Katrina hit. He's heading back to Washington, D.C., where the port storm, as we all know by now, has become a huge, huge matter.
Our White House correspondent Suzanne Malveaux has been traveling with the president. She's joining us now live from New Orleans.
Suzanne, what's the latest from the White House on this Republican revolt -- I think it's fair to call a revolt -- over this port deal?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, they're two aspects of this, of course. There's the public comments and, of course, that what's happening is behind the scenes -- publicly, White House Press Secretary Scott McClellan saying that the president's position has not changed on this, and that they continue to have open discussions with members of Congress and that they understand their concerns.
Now, privately, it is very clear what the strategy is of the White House is here. First, it is to stay on message, to insist that President Bush will, in fact, veto any legislation that blocks this port deal. But also a big part of the strategy, Wolf, is to simply buy time, to let this process play out. They acknowledge that House Republicans may have to take a stand on this issue, but some believe the political calculus is that White House -- is that the Senate Republicans will not block this particular deal.
But they say let this 45-day process play out. They may win some of those Republicans back and secondly, they may get what Ed had referred to before, the Dubai Ports World Company, looking at alternatives. A subsidiary or even an alternative board of directors to deal with the American side of this port issue. In the meantime, they are trying downplay this political controversy. They know it is a hot one, of course, and there could be some serious fall-out -- Wolf.
BLITZER: Suzanne, what was the point of the president's visit to the Gulf Coast today?
MALVEAUX: Well, certainly to emphasize three different things here. The president, for the first time -- it was his tenth visit to this area, the Gulf region area, but his first time to the Ninth Ward, that area critically hurt by Hurricane Katrina, particularly with the levees.
Three things he was focusing on. First the housing initiative in the tune of $4.2 billion that would allow up to $150,000 to those who have lost their homes. Louisiana residents pushing Congress to move forward on that.
Secondly, to try to emphasize the need to clear debris on lots of people's property. And third, of course, to come through with that promise. He is saying that by June 1st, the start of the next hurricane season, that they will repair all those levees, 350 miles worth, to pre-Katrina strength.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The first part of the strategy is to make sure these levees are strong. I mean, we fully understand that if people don't have confidence in the levee system, they're not going to want to come back. People aren't going to want to spend money or invest.
(END VIDEO CLIP)
MALVEAUX: And President Bush later in the day, of course, in several photo ops, trying to show he is relating to the people, not in a bubble. He was in Gulfport, Mississippi, as well as Goche (ph). He had a tool belt around his waist -- he was -- help fixing a light fixture. Also, New Orleans, stopped by for a cup of beans and rice. The president, of course, trying to convince people that he is very much engaged in bringing this region back -- Wolf.
BLITZER: Suzanne Malveaux, back at her hometown of New Orleans. Suzanne, thank you very much.
The New Orleans mayors race is heating up now that candidates have faced off in their first debate. Nine of the 23 contenders took part in a freewheeling exchange last night. Among them, the incumbent Ray Nagin and his most well-known challenger, the Louisiana Lieutenant Governor Mitch Landrieu. The election is scheduled for April 22nd.
Now to a developing story we're following out of Alabama. Three college students are under arrest in connection with a series of church fires. Authorities held a news conference just a short while ago. CNN's Fredericka Whitfield is joining us live from Birmingham, where the three suspects actually go to school. Fred, this an incredible story. Update our viewers what we have now learned.
FREDRICKA WHITFIELD, CNN ANCHOR: It really is incredible, especially since investigators are saying this likes a thrill gone very wrong. Investigators revealed within the past hour and even court documents indicated earlier today in a federal court that three college students, 19-year-old Ben Moseley, 19-year-old Russell Debusk and 20-year-old Matthew Lee Cloyd, allegedly began burning fires south of Birmingham as a joke. But then it got out of hand. And as diversionary tactic, according to investigators, they then started setting churches ablaze in western Alabama, bringing the total to nine church burnings. .
(BEGIN VIDEO CLIP)
WHITFIELD: There is no indication at this time, nor in the complaint or anywhere else, that this is a hate crime. As you said, they were excited by the fact that there were fires. And so there isn't -- there isn't a hate crime like you're talking about.
(END VIDEO CLIP)
MALVEAUX: So what led to the arrests? Well, investigators are saying that it boiled down to old-fashioned police work. Tire tracks that they were able to trace at many of the church burnings, apparently, then led them to very unique, special-order tires, which turned out to be registered to the Cloyd family, Matthew Lee Cloyd. He is one of the other students who also, who actually goes to University of Alabama, Birmingham.
Well, then investigators interviewed the Cloyd parents, which then led to the interview of Cloyd himself which led to other eye witness accounts, which then led to this unraveling story which is particularly remarkable. And here at Birmingham Southern College, where two of the other students attended, the school faculty here are just baffled because this a faith-based private, small college campus when in an hour from now they'll be having a press conference of their own, Wolf.
BLITZER: Fredricka Whitfield reporting, we're going to get back to you and get some more information. What a story, thank you very much.
For more on the three suspects arrested in connection with the Alabama church fire, let's go right to our Internet reporter, Jacki Schechner. What are you picking up, Jacki?
JACKI SCHECHNER, CNN INTERNET REPORTER: Well, Wolf, Fredricka was talking about that criminal complaint. It has been put online thanks to the United States Attorney's Office, the district attorney in Alabama. And you can read some of those details that she was talking about for yourself.
You can see here, Matthew Lee Cloyd, Russell Debusk and Benjamin Nathan Moseley being named in this criminal complain. There are many, many details to sift through. One of them being that DeBusk admitted to being present at all five of the fires in Bibb County.
We also did some hunting online today. It seems that all three kids had profiles on Facebook, which is a community site geared towards college kids. But you can't get into the details of those without actually being a member of those colleges or one of their immediate friends.
There's also photos of two of these kids in their school magazine or school newspaper. They were theater students, they were well known on campus. As Fredricka told you, it is a shooken up campus right now. They have a campus-wide meeting coming up. And even one friend of theirs says both were very well known on campus. So a little insight into this incident via the Internet -- Wolf.
BLITZER: What a story, I've got to say. Thanks very much, Jacki, for that.
We're in New York City and Jack Cafferty is in New York City. Jack, good to be with you. A lot of our viewers probably are going to be surprised to learn this is the first time the two of us have actually met.
JACK CAFFERTY, CNN ANCHOR: I know, six months ago we started ago THE SITUATION ROOM. It's a pleasure to have you in New York City.
BLITZER: You're much taller in person.
CAFFERTY: I'm actually the same size, whether I'm there or on T.V., but appear -- you only see from here up.
BLITZER: I know, but you're very tall.
CAFFERTY: Well, it's six something, two, three.
BLITZER: You're taller than I am.
CAFFERTY: Well, everybody's taller than you are. You're not very tall.
When it comes to the ports deal, it looks like House Republicans are going to side with the voters. Gee, what a surprise. They're all up for re-election in a few months. And perhaps oppose President Bush.
The House Appropriations Committee wants to add legislation to block the deal to a spending bill for Katrina and the wars in Iraq and Afghanistan. Nice move. Meanwhile the White House insists the president's position hasn't changed and that could mean the first veto in five years. What it probably is going to mean is it's going to get really ugly down there in Washington D.C. and I can't wait.
It will get more interesting next week. The House is expected to vote on this measure. If neither side blinks, it could make for fireworks between the president and members of his own party at least in the House. There's still some question about what the Senate may do on this issue.
But here's the question for this hour, when it comes to the ports deal, what do the actions of the House Republicans mean for President Bush? You can e-mail your thoughts to CaffertyFile@CNN.com or you can go to CNN.com/CaffertyFile. I find it fascinating that with mid-term elections about five months away, the House Republicans are going, "President Who?"
BLITZER: I've never seen them this angry at the president of their own political party.
CAFFERTY: The public doesn't want this deal and I guess, you know, they were home on break here a week or 10 days ago and they probably all got an earful from their constituents and they're ready to do battle. I can't wait, it's going to be a great show.
BLITZER: The good thing is that the public here, you could say it's clear, pretty much 70 percent of the public in the polls say they don't want the deal. I just got from Dubai, the public there likes the deal.
CAFFERTY: The public there isn't an entitled to an opinion. Are they allowed opinions in the sheikdoms, the kingdom over there?
BLITZER: They have an opinion in Dubai. I'll talk more about this throughout these hours. Jack, thanks very much.
Coming up, a war of words today between Washington and Tehran over Iran's nuclear ambitions. This, as the showdown now moves to the United Nations.
Also ahead, the immigration wars, we're going to tell you what's happening right now in Arizona and why the border is on the front burner in the election year.
And is the Democratic Party divided between the Hillary Clinton camp and Howard Dean's DNC? We're going to tell you what's fueling some talk, new talk in facts of a split. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: And this is just coming in to us from Texas, the former governor, Ann Richards, has cancer of the esophagus. A Richards spokesman is quoted as saying, "The 72-year-old Democrat will undergo treatment at a Houston cancer center and that he's facing this challenge." Richards served as Texas governor from 1991-to-1995, until she was defeated by George W. Bush.
She may be best known for her 1988 Democratic National Convention speech in which she accused President Bush's father of being born with quote, "a silver foot in his mouth." Ann Richards, the former governor of Texas, has esophageal cancer. We wish her a speedy, speedy recovery. We'll have more on this story here in THE SITUATION ROOM. Meanwhile let's go to our Zain Verjee, she's joining us from the CNN global headquarters in Atlanta with a closer look at other stories making news -- Zain.
ZAIN VERJEE, CNN ANCHOR: Welcome back, Wolf. A diplomatic showdown with Iran is brewing. Today, Mohamed ElBaradei of the IAEA submitted a report to the agency's board of governors in Vienna over Iran's nuclear program.
Now the matter is going to be handed over to the U.N. Security Council, which could consider sanctions against Iran, faced with those sanctions, a top Iranian official lashed out to the United States. It's basically the diplomatic equivalent of saying "bring it on."
(BEGIN VIDEO CLIP)
JAVAD VAEEDI, IRAN SUPREME NATIONAL SECURITY COUNCIL: The United States may have the power to cause harm and pain. But it is also susceptible to harm and pain. So if the United States wishes to choose that path, let the ball roll.
(END VIDEO CLIP)
VERJEE: The U.S. ambassador to the IAEA had this to say.
(BEGIN VIDEO CLIP)
GREGORY SCHULTE, U.S. AMBASSADOR TO IAEA: The leadership in Tehran has thus far chosen a course of flagrant threats and phony negotiation. They hope to divide the international community and leave their nuclear ambitions unchecked.
(END VIDEO CLIP)
VERJEE: To Baghdad now, body snatchings and body discoveries. Officials report they found 24 bodies in Baghdad, 18 were men who were bound, blindfolded and strangled -- apparently victims of Iraq's recent sectarian violence.
Meanwhile, today about 25 gunmen discussed as police commandos stormed a security firm in Baghdad. They snatched about 50 of the company's employees, stole money, and then forced their captives into cars and just sped off. The gunmen's identities and their motives aren't yet clear.
Today the White House said that North Korea launched a pair of short range missiles. Japan's Kyodo News Agency quoting sources says the surface to air missiles were launched near North Korea's border with China but the news agency is not cleared whether they were test fired or launched by mistake. White House Spokesman Scott McClellan says the six party talks are the way to get North Korea to abandon their nuclear ambitions. Back to Wolf in New York.
BLITZER: Thanks very much, Zain. Good to be back here. In Arizona today, a new attempt to crackdown on illegal immigration. the governor, Janet Napolitano, signed an executive order to put more state National Guard troops on Arizona's border with Mexico. But the Democratic governor said she would veto a Republican bill that would require her to send troops to the border. Immigration is a hot issue this midterm election term year. Our senior political analyst Bill Schneider is on the front line in Arizona -- Bill.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, here in Arizona, there's going to be a fierce contest to replace retiring Republican Congressman Jim Colby. The hot topic, illegal immigration.
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): Arizona's Eighth Congressional District is ground zero in the debate.
UNIDENTIFIED MALE: It seems to be black or white. Either people say let them say or get them out of here.
SCHNEIDER: Why here? Because beginning in the 1990s the federal government tightened border controls elsewhere, so illegal immigrants have been coming through the Arizona desert from Mexico.
GABRIELLE GIFFORDS, (D) ARIZONA CONG. CANDIDATE: We have hundreds of people die in the deserts every year. There's a disaster along on the border.
SCHNEIDER: Between 1,500 and 2,000 illegal immigrants are apprehended every day by the border patrol in the Tucson sector.
GUSTAVO SOTO, U.S. BORDER PATROL: The numbers in Arizona, we still account for almost half of the apprehensions nationwide. It is per se the last frontier.
SCHNEIDER: The problems caused are immense.
GIFFORDS: We don't know who those people are.
JOHN FIFE, RETIRED MINISTER: The devastation to the environment.
UNIDENTIFIED FEMALE: The hospitals have to treat and pay.
SCHNEIDER: One Republican candidate for Congress favors tougher enforcement.
RANDY GRAF (R), ARIZONA CONG. CANDIDATE: I believe there is a military aspect to this that will help immediately.
SCHNEIDER: A religious leader rejects that approach.
FIFE: It cannot be controlled with walls or militarization.
SCHNEIDER: The division can be unpredictable.
BLAKE MORLOCK, TUCSON RESIDENT: You got the conservative Republicans who are in favor of guest worker programs. You've got liberal Democrats who say get them all out.
SCHNEIDER: A Republican candidate repudiates the views of leading Republicans who want guest worker program.
GRAF: I just flat disagree with the Congressman and our senator and the president on this.
SCHNEIDER: And campaign is just heating up.
MORLOCK: It can be difficult to sit down and have a rational conversation about it with someone on either side of the spectrum.
(END VIDEOTAPE)
SCHNEIDER: Today, Arizona governor Janet Napolitano signed an executive order to deploy additional National Guard forces at the border. She's a Democrat -- Wolf.
BLITZER: Bill Schneider reporting for us. Thanks very much.
Up next, who better to talk to when you're in New York City than Hizzoner, the former mayor, Ed Koch joins us in just a moment to talk about the ports controversy and lots more.
Plus a big victory at the polls for Tom Delay, but he's not out of the woods yet. Stay with us, you're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: We're in New York City right now. Outrage here over the Dubai port deal is especially high. One of the ports slated to be run by a state owned Arab firm is right here in New York, another in nearby New Jersey. At a time when many Republicans are turning against the president on this issue, we're joined by the former New York City mayor Ed Koch, he's a Democrat who seriously rankled many members of his own party by endorsing President Bush last time around. Mr. Mayor, thanks very much for joining us.
What do you think of this port deal?
ED KOCH (D), FMR. NEW YORK MAYOR: I support the position of Peter King and Speaker Hastert that this deal cannot go through. And their position is taken on the basis of how can you place the security of the port in any form, whether it's operational or otherwise, it always involves some security, in the hands of a foreign government. Particularly a government like Dubai, which today is an ally but was one of the three governments that supported the Taliban that provided two of the people who blew up the World Trade Center and is guilty of its banks money laundering for terrorists.
BLITZER: You endorsed President Bush in 2004 because you were so committed to the issue of national security. This is an issue ...
KOCH: And I was dead wrong.
BLITZER: You regret endorsing him?
KOCH: No, not at off. When you compare Bush on only international affairs, for example, what he did in India, which was tremendous tact by the Democrats for it, it's tremendously positive and other things, Bush is head and shoulders above what Kerry would have been or many others in the Democratic party. I said when I endorsed him that I didn't agree with a single domestic position that he had. And I don't agree with every position he has internationally. But on balance, internationally in the battle against international terrorism, he's head and shoulders above most of the people in the Democratic party.
BLITZER: This is what you said on January 9, 2004, you said President Bush has earned my vote because he has shown the resolve and courage necessary to wage the war against terrorism. But at the same time on that same day, the same interview, you said even if we never find weapons of mass destruction in Iraq, though I think that we will, our military campaign for regime change was justified.
KOCH: I do.
BLITZER: Even now after all the talk of a civil war?
KOCH: You have to understand my position is somewhat different than his currently. We should put our allies, NATO allies and Arab allies, in the region on notice and ultimatum that we're leaving in less than six months unless they join us in providing soldiers and treasure to carry on the war.
BLITZER: But the chances of NATO doing that or the Arab allies doing that --
KOCH: Then we should leave because we've paid our price.
BLITZER: So you're basically saying in effect cut or run?
KOCH: I don't agree with that at all. I'm saying that there will be a civil war and the people who have more to lose than we are the regional people and France and Germany and Russia and Turkey, all of whom will suffer terribly if the turmoil begins there. We're there now. We will stay if they come in and bear casualties.
BLITZER: In the next six months if U.S. troops leave and there is a civil war in Iraq will all of this, the 2,400 2,300 dead, the half a trillion dollars, will all of that have been in vain.
KOCH: No. Remember, it was Tenet who said to the president, it's a slam dunk that they have weapons of mass destruction. Assuming that Bush had rejected the advice and there had been such weapons, what would we be calling Bush today?
The fact is, he acted appropriately on the information provided. That doesn't mean at this point we shouldn't leave if our allies won't come in and join the fight.
BLITZER: But knowing what you know now, with hindsight, it was a mistake, do you believe that?
KOCH: Yes, of course. I would not go in knowing what I know now. But I certainly believe that the president has every right to rely on the CIA director. And if he doesn't, then we really will hang him from the nearest lamppost. BLITZER: Ed Koch has not lost his biting edge over all of these years. You look great, Mr. Mayor. Thanks for coming into THE SITUATION ROOM.
KOCH: Enjoyed it. Appreciate it very much.
BLITZER: On our political radar this Wednesday, lots of stories. Congressman Tom DeLay easily has passed his first test with voters since the indictment that forced him to give up his job as the House majority leader. He won his Republican primary in Texas yesterday by a sizable margin. Our national correspondent Bob Franken is reporting for us from Houston -- Bob.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Wolf, everyone has been keeping a particularly close watch on this race because of all the problems that have beset Tom DeLay. But he gathered more than 60 percent.
(BEGIN VIDEOTAPE)
FRANKEN: Tom DeLay voted, but he did not hang around for the results. Confident of victory, even with all the ethical questions swirling around him, he headed for Washington for congressional business. Also, for another fundraiser.
REP. TOM DELAY (R-TX), HOUSE MAJORITY LEADER: Well, since I'm going to be in town, why not raise some more money?
FRANKEN: Delay was having the last laugh on his Republican opponents, leaving his mean challenger almost sputtering about the fundraiser.
UNIDENTIFIED MALE: It's terribly inappropriate and callous.
FRANKEN: Many Democratic strategists badly wanted Tom DeLay to win, so they could try to make him their villainous GOP posterboy in the general election. But Nick Lampson, who will run against DeLay in November, is treading very carefully.
NICK LAMPSON (D), TEXAS CONGRESSIONAL CANDIDATE: I have been an independent voice. I have been one who did not make my constituents embarrassed about any of my service or activities. And I want to concentrate on that.
FRANKEN: Other Democrats will relentlessly focus on charges that DeLay did embarrass his constituents. But DeLay warns they do so at their own peril.
DELAY: It's having a great effect. It is having a positive effect, quite frankly. The backlash from my constituents has been amazing.
(END VIDEOTAPE)
FRANKEN: For now, Tom DeLay has won the first skirmish. But he faces an all-out war with the Democrats who believe that they have their best chance against DeLay in more than 20 years -- Wolf.
BLITZER: Bob Franken reporting from Houston. Bob, thanks very much. We'll take a closer look at DeLay's margin of victory in the primary. It's a possible, possible indicator of how he may do in the fall. DeLay got 62 percent of the vote. His nearest rival, Tom Cambell, won just 30 percent of the vote.
Tom DeLay's win in the Texas primaries isn't the only race that's getting some attention. Let's get more now from our Internet reporter, Jacki Schechner -- Jacki.
SCHECHNER: Wolf, Henry Cuellar managed to maintain his seat in the Texas district, the 28th District. He won by 53 percent of the margin -- percent of the vote, rather -- over Ciro Rodriguez.
But the race was a lot closer than people expected it to be. And that was thanks in large part to this photograph that was published in the "Washington Post" and then circulated by liberal and progressive bloggers. The idea was that they didn't think Cuellar was progressive enough.
This is, of course, a Democratic primary. And they wanted to get the message out to give money and to support the other candidate. So what they did is they had a call to arms and an action online. They ended up essentially raising $140,000 in individual donations. They tell me -- the Rodriguez campaign tells me it was $350,000 in total through online donations.
Now, of course, they ended up losing in the long run, but as for progressive bloggers, they say this is a sign of things to come. It shows that they can make a difference, and that this is just the online push they're going to need going into '06 and '08 -- Wolf.
BLITZER: All right, Jackie. Thanks very much.
Up next, a showdown brewing right now on Capitol Hill. It's Republicans -- yes, Republicans -- versus the president on the Dubai ports deal. Can the White House find a way out of this political mess?
And Mr. Bush still trying to make amends for the slow Katrina response. Will there be payback for Republicans on Election Day? Hot issues, tough questions all coming up in our strategy session.
(COMMERCIAL BREAK)
BLITZER: Today in our strategy session, the controversy over ports. Republicans are literally revolting against the president while Democrats are threatening to shut down the Senate on this issue. Joining us, Democratic strategist Paul Begala and Republican strategic Bay Buchanan. Guys, thanks very much for joining us.
Listen to what a Republican congressman, Dan Manzullo of Illinois -- he says this. He says, "This is bigger than impeachment. Either the president finds a way to kill it, or we'll have to ourselves there. There is no out on this." Bay Buchanan, those are pretty, pretty tough words.
BAY BUCHANAN, PRESIDENT, AMERICAN CAUSE: And they're right for the Republican Congress to take this position. Because, Wolf, the key here is that this issue has hit the heartstrings of America. Middle America has decided they do not want foreign government taking charge of any kind of activity in their ports.
And so Republicans are up in November, and they realize if they don't get on top of this, if they don't stop this, if they don't at least on the record as being absolutely opposed, they could have real problems in November. So this is survival for Republican congressmen.
BLITZER: What should the Democratic strategy be, Paul, right now?
PAUL BEGALA, CNN POLITICAL ANALYST: Well, I think the Democrats have to get out ahead of it. They did a good job, I think, of being the first people to blow the whistle on this. Senators Charles Schumer and Hillary Clinton from New York, Bob Menendez, the new senator from New Jersey, they're pushing it now.
You know, Senator Schumer has now indicated he's going to bring up legislation to block this in the Senate so that the Republicans who are now moving in the House don't get out in front of them.
You know, the point they're trying to make here to the country is that Mr. Bush and his team have become dangerously incompetent, that they're threatening America's national security, and they don't level with you. They deliberately misled us in this process, and that frankly, they don't seem to be on your side. And I think if they hit those three points, they're going to do pretty well.
BLITZER: Here's the Republican majority leader, John Boehner, the new leader of the House of Representatives. He says, "Most bills at the end of the day, the politics and policy kind of come together. But not always. And we are into one of these situations where this has become a very hot political potato."
Do you have any advice right now for the White House, Bay, on what they should be doing to get themselves out of this hot potato? Because the alternatives are not good. On the one hand, you might placate the political environment here in the United States. And on the other hand an ally, the UAE, which has cooperated since 9/11 significantly in that part of the world.
BUCHANAN: Wolf, the key here is the politics. You know, when the politics and the policy don't match and you're eight months before a general election, those in Congress who are up for reelection are looking at the politics real closely.
And there is no way out except to kill the deal. And I think the House of Representatives is going to do it. And on the point Paul made, where the Democrats have to get out further, if you look at what Republican congressmen have done, they've gotten out strong on security at the borders, they're going to tie this together with security of the ports, and they're going to be able to trump Democrats on the issue of security as a team.
I think this will be an overreaching umbrella type of issue for Republicans in Congress if they're successful. They're pulling away from the president on this issue.
BLITZER: Here's what the president said, Paul, today in New Orleans on Hurricane Katrina. Listen to this.
(BEGIN VIDEO CLIP)
BUSH: First part of the strategy is to make sure these levees are strong. And we fully understand that if people don't have confidence in the levee system, they're not going to want to come back. People aren't going to want to spend money or invest.
(END VIDEO CLIP)
BLITZER: Paul, his tenth visit since the hurricane struck. This is a tough issue for the Republicans. But can the Democrats on this issue, like the ports controversy, capitalize?
BEGALA: Well, I think so. It's astonishing. I've never seen that footage before, Wolf. The president was chuckling, smirking, almost laughing at the notion of the levees not being secured.
Now, we just learned that he misled us again. Said nobody could have anticipated the levees would be breached. We now know that Homeland Security warned him they could be. That Max Mayfield from the National Hurricane Center warned that they could be overtopped.
And so I think the president looks terrible here. Here again, the Republicans can run, but can't hide. They've got a 98 percent record of voting with President Bush. You watch. Democrats are going to run against rubber stamp Republicans and against this dangerous incompetence of the Republicans in Washington. And they can run, but they can't hide. I think this is another one that just hurts Republicans desperately.
BUCHANAN: Paul is wrong on this part, Wolf. The issue has been spent. Katrina did, without question -- the handling of it did hurt their administration. They took their hit last fall. This issue is spent now.
I'm sure going down there is helping the president in Mississippi and Louisiana. They're delighted to see that he's focused and wants to rebuild. But in the rest of America, I think they're saying, "Exactly where is he getting this money, and how wise is it to build up an area that is so vulnerable to storms? Why not move it a little bit?" And they're wondering exactly what's happening down there.
BLITZER: His approval rating on this issue is about what it is on the overall issue, Bush's handling of Katrina. According to the "Washington Post"-ABC poll, 36 percent approve, 63 percent disapprove.
You know, looking ahead to November, Paul -- and you know the Democrats. You've just written a whole book with our friend James Carville on it. If the Democrats don't succeed in capitalizing on the president and Republicans woes in November, there's going to be all hell to pay.
BEGALA: Yes, there will be. The late great Pat Moynihan, who was a senator from New York before Hillary Clinton, once looked at the crowd around Bush the first, our current president's dad, and said, "If we can't beat this gang, we better find another country to run in." Well, guess what. We couldn't beat them.
But I'm telling you, I spent some time on the Hill today with Senate Democrats. And I get the sense that they are more united and more ready to take the fight than ever before. And as I tell you, their essential indictment of the Republicans and President Bush are these three points.
First, they've been dangerously incompetent. Second, they continue to mislead us. And third, they're just not on your side. They're not looking out for you. And I think that's an effective message for Democrats.
BLITZER: We only have a few second, Bay. But is 2006 going to be for Democrats what 1994 was for Republicans?
BUCHANAN: I thought for a while that it could be, that it was evolving that way on this port deal in particular. But I think the way the Republicans are stepping up to the plate, they're getting tougher and tougher, they want all those ports taken from any kind of foreign governments.
I think they are going to have an issue in which they will present themselves to the American people as on the right track and pushing the president to come along with them. And I think on that issue, they will be able to maintain the majority.
BLITZER: Bay Buchanan and Paul Begala, a good strategy session today. Thanks very much to both of you.
Coming up, are allies of Hillary Clinton trying to do Howard Dean's job? We're going to examine signs of a possible -- a possible -- split between the senator and the chairman of the Democratic Party. What might it all mean for the 2008 presidential race?
And disgraced lobbyist Jack Abramoff may be telling all to prosecutors, but now he's been talking to a magazine reporter and showing off his pictures with politicians. The story and the reaction. That's coming up in our 7:00 p.m. Eastern hour right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back. There's new speculation today about a possible split in the Democratic Party. On one side, there's Hillary Clinton's camp; on the other, Howard Dean and the Democratic Party machine. Our Mary Snow is here in New York. She's been watching this story.
What's at stake, what's going on, Mary?
MARY SNOW, CNN CORRESPONDENT: Well, Wolf, good to have you in New York. And a lot stake in the next coming years. That speculation is stirring over new Democratic effort to collect information on voters. Now, everyone involved insists there's no rift among Democrats, which was first reported in the "Washington Post." But some who follow politics aren't convinced.
(BEGIN VIDEOTAPE)
SNOW: With major elections in 2006 and 2008 at stake, why is an advisor to Senator Hillary Rodham Clinton starting a company to collect voter data, a job usually done by Howard Dean's Democratic National Committee?
Former aid to President Bill Clinton, Harold Ickes, just started a private firm to collect information about voters. It can range from what kind of car they drive to whether they own homes. Democrats agree they lag behind Republicans in voters research. Political observers read more into the move.
LARRY SABATO, UNIVERSITY OF VIRGINIA: There's a lot of dissatisfaction with Howard Dean, the DNC chair, at least among establishment Democrats who are based in Washington.
SNOW: Recently, Dean found himself on the defense on the topic of fundraising, and responded to critics in THE SITUATION ROOM last week.
HOWARD DEAN, DEMOCRATIC NATIONAL COMMITTEE CHAIRMAN: We're rebuilding the party. We've raised 20 percent more than we ever have before in an off year.
SNOW: But Ickes insists his private firm is not critical of Howard Dean or the DNC, saying they have the DNC has the best database for Democratic candidates. Data warehouse will complement Governor Dean's work.
The DNC tells CNN its primary responsibility is to gather voter information and is working to upgrade technical glitches that hampered Democrats in 2004 when voter lists weren't accessible to states. Behind the technology, some believe there is a Hillary Clinton factor.
SABATO: Harold Ickes is not an independent agent. He is very much connected to the Clintons, Bill and Hillary, has been for some time. And this is part and parcel, whether he'll admit it or not, of Hillary Clinton's presidential plan.
SNOW: But Senator Clinton repeatedly insists she is only interested on the 2006 Senate race.
(END VIDEOTAPE)
SNOW: And despite that insistence that Senator Clinton is all about 2006, some observers say the numbers suggest another story. She has raised $17 million in cash, which is now on hand. Harold Ickes, by the way, also denies that his new firm is any kind of front for Senator Hillary Clinton -- Wolf.
BLITZER: And whatever money she doesn't spend in the New York State Senate reelection campaign, she can clearly hold over for a presidential race if that's what she wants to do.
SNOW: Absolutely. And that is what is causing so much speculation because she is raising so much money.
BLITZER: Mary, good to see you. Jack Cafferty I've never met, but you I knew. Thanks very much for coming in, as always. Mary Snow reports from THE SITUATION ROOM from New York.
Up next, a public offering that hits the New York Stock Exchange very close to home. We'll have details.
And the showdown over Iran's nuclear program heating up. The White House complaining about, quote, "provocative words" from Tehran. We'll have a live report on the talks and the tension in our next hour right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Our Zain Verjee joining us right now from the CNN Global Headquarters in Atlanta with a closer look at other stories making news.
Hi again, Zain.
VERJEE: Hi, Wolf.
In Houston, high drama at the Enron trial. The defense team for former CEO Jeffrey Skilling finally gets a crack at Andrew Fastow, Enron's former financial chief officer and a key prosecution witness. The defense is attacking Fastow's credibility. They also portray him as a man consumed by greed who's willing to bring down anyone to protect himself. Fastow has implicated Skilling in a complex financial scheme that eventually sunk the company.
And the New York Stock Exchange is now a publicly trade company. The exchange went public today, and its stocks surged up to 18 percent. The exchange had been a member-owned club for 213 years. The New York Stock Exchange is the world's largest.
Wolf, back to you in New York. What was it like meeting Jack for the first time? He's quite tall.
BLITZER: He's a very tall. You've met him, right, Zain?
VERJEE: I have. He's very tall. He's a little skinny. We need to fatten him up, Wolf.
BLITZER: We'll give him some food.
VERJEE: Burgers. He likes burgers.
BLITZER: All right, I'll take care of it. Thanks, Zain. Still to come, the port storm on Capitol Hill. What will a Republican revolt now under way mean for the president? Jack Cafferty -- speaking of Jack -- will be back with your email.
And my exclusive interview with the man who represented Saddam Hussein at the United Nations. Does he think a civil war in Iraq is inevitable? The former ambassador, Mohammed Aldouri. That's coming up exclusively in our 7:00 p.m. Eastern hour, right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: I'm in New York. So is Jack. That means Jack Cafferty's file is here.
CAFFERTY: Indeed. Thank you, Wolf. We got -- pardon the expression on this ports story -- a pier 6 brawl shaping up down in Washington. The House Appropriations Committee wants to add legislation to block this ports deal to a spending bill for Katrina and the wars in Iraq and Afghanistan.
The White House says President Bush hasn't changed his mind one iota and will veto anything that attempts to overthrow this ports deal. So the question is, when it comes to the ports deal, what do the actions of the House Republicans mean for this here president?
Mike in Washington writes, "There are no accidents in a Karl Rove White House. He's obviously set this up so Republicans can distant themselves from President Lameduck, get reelected, and keep their agenda alive. It's shocking -- or maybe not -- that you haven't picked up on this, Jack."
Clint in Atlanta writes, "It would not surprise me a bit if the Republican Congress rolls over on the port deal, just like the Republican Senate did on the issue of spying on Americans. This administration will get whatever it wants from its rubber stamp Congress."
John in Jacksonville: "Jack, basically, it means their collective hearing improves when a president's poll numbers drop below 40 percent and their collective heads are on the reelection chopping block."
Sam in San Diego: "If we had House elections every year, at least we would have one branch of government that actually care what the voters think instead of selling us out to the lobbyists."
And Patrick in Manhattan Beach, California: "Quit salivating, Cafferty. Neither the House nor Senate will pass legislation blocking this port deal. Any such legislation will fail by a slim party line margin." Not this time, Patrick.
BLITZER: We'll see.
CAFFERTY: It's going to be great. I can't wait.
BLITZER: There's never any lack of excitement in Washington.
CAFFERTY: No. You said the people in Dubai want this deal.
BLITZER: Yes. The citizens of the United Arab Emirates because they're going to make money.
CAFFERTY: Who cares what they want? This is about our ports. They have no votes...
BLITZER: I was just telling you what the people in Dubai -- they like the deal.
CAFFERTY: Just feeling argumentative on the ports story.
BLITZER: Jack, thanks very much.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
