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The Situation Room
Dubai Firm to Give up Stake in U.S. Ports; Iran Vows Not To Compromise Nuclear Program; Flight School Officials, Students Testify on Zacarias Moussaoui; Bird Flu Could Reach U.S. Within Months; Alberto Gonzales Interview; William Cohen Interview; U.S. Military To Transfer Detainees From Abu Ghraib To New Facility; Sectarian Violence Forces Iraqis Out Of Their Homes
Aired March 09, 2006 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: It's 5:00 p.m. here in Washington, and you're in THE SITUATION ROOM, where news and information from around the world arrive at one place at the same time.
Happening now, it's 2:00 a.m. in Dubai, where an Arab firm pulls the plug on a U.S. ports takeover. It will now turn over control of American ports to Americans. With Republicans in revolt, did President Bush see the handwriting on the wall over this hand-over?
Does the United States torture terror suspects at Guantanamo Bay? Does the Patriot Act threaten your rights? We've been talking about that today, and coming up, my one-on-one interview with the attorney general, Alberto Gonzales.
And it's 1:30 a.m. in Tehran. Iran says it won't be bullied and vows not to compromise in its nuclear showdown with the West. Warnings here in Washington that Iran may soon be the biggest threat facing the United States right now.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
It's been a day of stunning developments in the deal that would have handed control of U.S. ports over to an Arab company. With congressional Republicans in open mutiny and President Bush heading for a humiliating defeat, Dubai Ports World, which was poised for the takeover, now says it will turn over those American port operations to a U.S. firm. The announcement was read allowed on the Senate floor by Republican John Warner.
(BEGIN VIDEO CLIP)
SEN. JOHN WARNER (R), VIRGINIA: This decision is based on an understanding that DP World will have time to effect the transfer in an orderly fashion, and that DP World will not suffer economic loss. We look forward to working with the Department of Treasury to implement this decision. End statement.
(END VIDEO CLIP)
BLITZER: The statement from DP World says the action is being taken to preserve the strong relationship between the United Arab Emirates and the United States, but the reality is that the Republican leadership has already told the White House that the ports deal had no chance at all.
So, where do things stand now for the ports deal and where do we all go from here?
Our chief national correspondent, John King, is standing by, but let's get our Ed Henry, our congressional correspondent, in with all the late-breaking developments.
Ed, if the Republicans and the Democrats in the House and Senate step back a little bit for this, there was virtual unanimity against this deal, wasn't there?
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: There was. And it's a whole new political dynamic we haven't seen in the first five-and-a- half years for this president.
Frankly, whether it's Bill Frist in the Senate, Speaker Hastert over in the House, they've been marching virtually in lockstep, tax cuts, the war in Iraq, giving the president whatever he has said he has needed, whether it's a tool to fight the war on terror, or something here on the homefront. And for the first time, we're seeing a dramatic break, a very stark break, and there's no coincidence that this is happening because it's a midterm election.
One key Republican senator told me yesterday, if the president was at 65 percent in the polls, do you really think this would be happening -- Wolf.
BLITZER: A good question.
John, if you step back and look at the mistakes that were made by the Bush White House, one mistake was clearly letting this committee, this interagency committee approve the deal without any consultations up on Capitol Hill. The other mistake, though, clearly was the president coming out so quickly and threatening an actual veto, something he has not done since he assumed office.
Are they just too tired up there after these years of really working very hard?
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well, there are certainly many in town, including close allies of the White House, Wolf, who make this case, who say this is a White House that is tired, that has second-term blues. But, to go back to Ed's point, do you think if the president was at 50 or 60 percent anyone would be saying they were tired, even if they made a mistake or so?
There were mistakes in the process. The White House is willing to concede those. It is only privately are they willing to concede that the president made a tactical mistake in issuing that veto threat because it boxed him in from that point out.
He could not publicly back away from that even when the White House saw that this deal was collapsing, that there was no support for it in the Congress. The president publicly had challenged his own party. And White House officials say the president even now believes that it was the right thing to do to support this deal, that he believes it is wrong to have this deal torpedoed. But the political reality is, they have known for several days that it was a very big hill to climb. They knew this morning when there was a meeting at the White House it was an impossible hill to climb.
But they say the president was boxed in by his own words. So he essentially needed someone else to get him out of this.
BLITZER: Ed, the deal is dead now, for all practical purposes. But I assume that many lawmakers in the Senate and the House are still going to want to try to pass legislation that would prevent foreigners from owning or operating major infrastructure operations here in the United States. I assume there's a lot of leaders, a lot of members who are going to want to do that.
Am I right?
HENRY: Absolutely. In both parties you are going to see people like Republican Duncan Hunter in the House making sure that something like this can't happen again. It's really been shining a bright light on this whole CFIUS process which many of us didn't know much about, the bureaucratic process in which these deals are approved. And now that it is such a global company, you are going to see more of these deals coming up more and more.
You can bet not just the White House but Republican and Democratic leaders up here who weren't necessarily paying attention will pay more close attention to this. And in terms of the political dynamic, sure, it's a different dynamic with the Republicans with this president, but also for the Democrats.
We've heard so much about how they have seen the president stumble, but the Democrats up here have not been able to capitalize. For the first time maybe in a while we've seen the Democrats take something where the president seemed to have kind of a misstep, and they really did capitalize.
People like Chuck Schumer, yesterday, it was a one-two punch. It wasn't just House Republicans standing up. But then when Schumer went to the Senate floor with that amendment to block this deal, that was the second punch that put this away. So maybe the Democrats are starting -- it's only a start -- but starting to capitalize a little bit in this election year -- Wolf.
BLITZER: John, I'm getting e-mail from a lot of viewers out there who still think there's something shady going on, still think that DP World is going to control some U.S. company that may technically take over, but they are really going to be running the show.
What are you hearing on that?
KING: Well, I'm hearing -- I'm hearing that suspicion around Washington quite a bit. And that is why, as Ed just said, many still want to go forward with this legislation, or at least keep it in reserve.
The company is telling people that it is going to sell the assets. Now, obviously we'll have to watch as this goes forward. It also says it will not sell them at a loss. So it could take some time to find a buyer. And there are not a lot of American companies in this business right now.
So there will be a lot of questions raised about this. But if DPW, if the Dubai-based firm or any foreign firm is at the head of the corporation, in the end, they would have to go back through this process at the Treasury Department that got us into this mess to begin with. So most believe, yes, suspicious in town. But in the end, it will be a full sale.
How long will that take, exactly what form will it take? Those are big questions, Wolf, and why this controversy -- I think the volume will go down a bit, but it will not go away for a while.
BLITZER: All right, John and Ed. Thanks very much for that.
Will Americans pay a price for torpedoing this ports deal?
Our Brian Todd has been looking into the consequences of all of this. He's joining us live from the newsroom -- Brian.
BRIAN TODD, CNN CORRESPONDENT: Wolf, officials from Dubai Ports World say they made this move because of the strong relationship between the United Arab Emirates and the U.S. But some experts are very concerned about how strong that relationship will be in some critical areas.
(BEGIN VIDEOTAPE)
TODD (voice over): A warning of possible fallout from the port fight.
JOHN MCLAUGHLIN, CNN NATIONAL SECURITY ADVISER: I think we've missed a opportunity.
TODD: CNN national security adviser John McLaughlin, a former deputy CIA director, says American politicians focused too much on the UAE's pre-9/11 terrorist ties and undervalued the Emirates' role since September 11 in catching terrorists, cracking down on weapons trafficking and money laundering.
Now...
MCLAUGHLIN: I think the UAE will continue to be a good intelligence partner, but there's a risk here, a chance that they will lose a lot of their enthusiasm for cooperating as closely with us as they have in the past.
TODD: Militarily, U.S. officials consistently hit home one point: the Emirates, specifically their port facilities in Dubai, are critical to U.S. operations in Iraq an Afghanistan. CAPT. THOMAS GOODWIN, U.S. NAVY: On a daily basis there is at least one U.S. ship in a port in the UAE, and oftentimes more than that.
GEN. PETER PACE, JOINT CHIEFS CHAIRMAN: And as you look to potential problems in the future in that region, the United Arab Emirates' location and capacity will be critical to our ability to succeed.
TODD: Now one former U.S. defense secretary tells CNN the ruling family may not kick American ships out of port, but may, in his words, "rethink their level of participation."
In business, the UAE is a huge American partner. Emirates Airline has placed a multibillion-dollar order for Boeing jets, but also buys planes from European-based Airbus.
Now...
RICHARD ABOULAFIA, TEAL GROUP: It's easy to see a scenario where this poisons commercial relations between the Emirates and the U.S., and that could directly impact Boeing's prospects to sell aircraft to the Emirates.
(END VIDEOTAPE)
TODD: A Boeing officials tells CNN his company is getting no signals from the UAE that business will be affected by the ports development, but experts say what's critical are the signals going the other direction, that in business, the military, and intelligence, the U.S. needs to send a message it has a critical partner in the Arab world that will be there through thick and thin. That message, they fear, may at the very least be diluted -- Wolf.
BLITZER: All right, Brian. Thank you very much.
Jack Cafferty once again is standing by in New York with "The Cafferty File" -- Jack.
JACK CAFFERTY, CNN ANCHOR: Hi, Wolf.
The Dubai Ports deal provides us with a terrific object lesson in the way the American political system works. Suddenly, members of Congress heard what the American people were saying. You know, the people, the ones they were elected to represent. Not the president, who, when it looked like he may not get his way, through a mini tantrum and threatened to veto any legislation that got in the way of his agenda.
And why did Congress suddenly decide to do what the people wanted? Well, some of their decision might have had to do with the upcoming midterm elections. It was made clear to them by the voters that if they allowed the ports deal to happen, they'd be looking for a job come November.
See, there is nothing, and I mean nothing, that's more important to a politician than being reelected. In the end, the ports deal died because the people made themselves heard on no uncertain terms. How refreshing.
Of course, we still have those elections coming up.
So here's the question: How will the collapse of the ports deal affect the midterm elections?
E-mail us at CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.
BLITZER: Thanks, Jack, very much.
And we're going to have much more on the ports deal collapse coming up this hour.
Also, tough new talk from Tehran, and increasing concern in the Bush administration over Iran's nuclear ambitions. We're going to have details of the escalating rhetoric.
Also, the attorney general, Alberto Gonzales. He'll join us in THE SITUATION ROOM to talk about the Patriot Act, which was renewed today. Allegations of U.S. torture and lots more.
And a major development at Iraq's Abu Ghraib prison, site of a major U.S. military scandal. We are going to show you what the Pentagon is now planning to do over there.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: More on the ports deal collapse coming up. But there's other important news we're watching.
More defiance from Iran today as it vows not to compromise over its nuclear program. And concern from the Bush administration, which says Iran may soon pose a significant danger to this country.
Let's go live to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Wolf, the controversy over Iran's refusal to give up its nuclear program is escalating by moving into the U.N. Security Council, but the rhetoric over the controversy is escalating, as well.
(BEGIN VIDEOTAPE)
CONDOLEEZZA RICE, SECRETARY OF STATE: We may face...
MCINTYRE (voice over): Testifying before the Senate Appropriations Committee, Secretary of State Condoleezza Rice said Iran seems intent on developing a nuclear weapon. And that makes it the single biggest threat facing the world. RICE: We may face no greater challenge from a single country than from Iran, whose policies are directed at developing a Middle East that would be 180 degrees different than the Middle East that we would like to see developed.
MCINTYRE: Iran's hard-line president, Mahmoud Ahmadinejad, remains defiant, saying Iran has an inalienable right to develop peaceful nuclear energy, and insisting it would not buckle to international pressure.
MAHMOUD AHMADINEJAD, IRANIAN PRESIDENT (through translator): Iranians are not used to bullying and will not also surrender to bullying.
MCINTYRE: Ahmadinejad was also quoted as saying the U.S. would suffer more, a day after another Iranian official threatened harm and pain in retaliation for the U.N. involvement. That was seen by some analysts as a veiled threat by Iran to cut oil production to boost prices, something Iran's oil minister denied.
Pressed by Senator Robert Byrd, Defense Secretary Donald Rumsfeld refused to say what contingency plans, if any, the Pentagon might have to strike Iranian nuclear facilities, insisting the U.S. remains on a diplomatic track.
DONALD RUMSFELD, SECRETARY OF DEFENSE: Senator Byrd, I know of no plans to attack Iran, if that's the thrust of the question.
(END VIDEOTAPE)
MCINTYRE: Rumsfeld's top military adviser, Joint Chiefs chairman General Peter Pace, also chimed in that the U.S. had no plans to attack Iran, he said, within its borders. But he said Iranians who have been crossing into Iraq to battle the U.S. and Iraqi forces will be treated, he said, as enemies -- Wolf.
BLITZER: It's interesting, Jamie, General Peter Pace, the chairman of the Joint Chiefs of Staff, suggesting that United Arab Emirates naval facility, the air facilities that the U.S. uses in that part of the world, are very important if there are dangers in that part of the world. He seemed to be alluding to Iran.
MCINTYRE: That's right. And he again underscored that the UAE has been -- he said the U.S. has had no greater friend since September 11 in that region in cooperating -- and mentioning specifically, by the way, intelligence sharing.
The U.S., though, again insists that it's on a diplomatic track with Iran and is not talking anything about any sort of military option.
BLITZER: Thanks very much.
Jamie McIntyre at the Pentagon.
Officials and former students from an Oklahoma flight school testified today in the penalty phase of Zacarias Moussaoui's trial, with one describing the confessed terror conspirator as a "below average pilot."
Our justice correspondent, Kelli Arena, is joining us now from outside the courthouse in Alexandria, Virginia, with the latest -- Kelli.
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, we also heard from the FBI agent who arrested Moussaoui back in August of 2001. He says that Moussaoui lied to him repeatedly, which complicated his investigation.
Agent Harry Sammet (ph) says that Moussaoui told him that he was taking flight lessons for enjoyment, for his personal ego. He said that the $32,000 that he came into the United States with was provided by family and business associates, and he said that he denied any link to any terror investigation.
Now, Sammet says that he could not ask useful follow-up questions because of those lies. And Wolf, that's key in this case, because the prosecution is trying to prove that Moussaoui's lies prevented FBI agents from preventing the September 11 attacks.
So very key testimony today.
Sammet is also a pilot. And as you said, we also heard from two flight instructors who worked with Moussaoui while he was here. They all say that they were very suspicious of Moussaoui from the beginning because he came in wanting to learn how to fly a 747-400 with very little pilot experience.
They say that -- Sammet says that he told Moussaoui that he believed that he was part of a terror plot, and he also says that he told him, "If anything happens, Moussaoui, we're going to hold you accountable" -- Wolf.
BLITZER: All right, Kelli. Thanks very much.
We'll continue to watch the penalty phase of this trial.
Coming up, a serious warning about bird flu. One administration official saying it could show up in the United States within months. Our Internet reporters are going to show us how that could possibly happen. It's coming up.
And coming up in our 7:00 p.m. Eastern hour, has President Bush exhausted his political capital? Our senior analyst, Jeff Greenfield, looks at the president's mounting problems.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: The president now on the ground in Atlanta Hartsfield airport. The president landing just moments ago. He's addressing a Georgia Republican event not far away from the airport. The president now in Atlanta for that event.
We'll see what kind of reception he gets in the next couple hours.
Today, the Department of Homeland Security is saying avian flu could reach the United States within the next few months. This news comes following a report from the United Nations suggesting the timetable is between six months and a year.
How would bird flu arrive on U.S. shores?
Let's go to our Internet reporter, Jacki Schechner. She's investigating -- Jacki.
JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, migratory birds, that's what we're talking about here. I talked to Dr. Nabaro (ph) of the United Nations today and Dr. Derksen of the Alaska Science Center. They are both concerned with migratory flyways and how these birds are going to overlap each other in certain regions. Specifically, one of the ones they want to take a look at is how birds from Asia and Alaska overlap or migrate from one to the other.
Now, the Alaska Science Center has identified 29 species they call high priority. They're going to be sampling those extensively during 2006. And they have a display on their Web site called "Wandering Wildlife."
And what you can do is go to this online, take a look at some of the species they're talking about. There's three of the birds there that they're keeping an eye on.
One of them is a long tailed duck. And the idea of why we're talking about this is the next few months is something like this will have spent the winter in Asia and then start migrating over to Alaska.
So these are some of the flight patterns they're taking a look at, Wolf. They are very concerned about this.
BLITZER: All right, Jacki. Thanks.
We are going to have much more on this story coming up in our 7:00 p.m. Easter hour. Our Mary Snow is investigating, as well.
Zain Verjee is joining us once again from the CNN Center with a quick look at some other stories making news.
Hi, Zain.
ZAIN VERJEE, CNN ANCHOR: Hi, Wolf.
Fierce storms have left at least one person dead in southwestern Arkansas. Winds strong enough to tear off roofs, and hail and lightning have been pounding the southern plains. An 83-year-old man was killed when lightning struck his house, sparking a fire. More than 7,000 homes and businesses are without power. The bad weather is rolling into the South.
The Reverend Billy Graham is in New Orleans. The 87-year-old evangelist says the scope of the destruction there from Hurricane Katrina leaves him speechless. He plans to preach on Sunday at the New Orleans arena, in his first public sermon since June. Graham says he doesn't know why the storm hit, but thinks good will come out of New Orleans' revival.
The Tennessee Senate has approved a proposal to amend the state's constitution so that it does not guarantee a right to an abortion. The vote was 24-9. The measure still has to pass both the Tennessee Senate and the House several times, and then go before state voters.
Monday, South Dakota's governor signed a new law banning almost all abortions in that state.
And in "The Bottom Line," a down day for investors. Both the Dow and the NASDAQ closed down lower amid concerns about the ballooning U.S. trade deficit, higher interest rates and the labor market. Unemployment claims climbed about above 300,000 for the first time in eight weeks -- Wolf.
BLITZER: Zain, thanks very much.
Zain Verjee reporting.
Coming up, the attorney general of the United States, Alberto Gonzales. He will join us here in THE SITUATION ROOM. We'll talk about several major issues, the signing of the Patriot Act, the extension today, and allegations of torture committed by U.S. forces at Guantanamo Bay in Cuba.
And the ports deal is just the latest political problem for President Bush. Has he run out of political capital? We are going to focus on the president's problems. That's coming up in our 7:00 p.m. Eastern hour.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: Here's a look at some of the "Hot Shots" coming in from The Associated Press, pictures likely to be in your hometown newspapers tomorrow.
Baghdad: Iraqi soldiers inspect the wreckage of a car destroyed by a roadside bomb. Sixteen civilians were killed in today's violence there.
Hawaii: An air ambulance plane crashed at a BMW car dealership. The pilot and two nurses were killed.
China: Riding a bike in a sandstorm. The northern part of the country is being blanketed by dust and sand.
Tel Aviv: Get this, Sharon Stone holds a drawing of herself made by Israeli and Palestinian children. The actress is on a five-day trip sponsored by the Perez Center for Peace. That would be Shimon Perez Center for Peace.
And that's today's "Hot Shots."
President Bush today signed the measure re-authorizing the Patriot Act, saying it will improve national security and safeguard civil liberties of Americans. At the same time, there are new reports alleging very harsh treatment of terror suspects by Americans at Guantanamo Bay. I put both of those issues to the attorney general, Alberto Gonzales. Here's a part of our one-on-one interview.
(BEGIN VIDEOTAPE)
BLITZER: Let's talk a little bit about torture. It's a sensitive subject, one that I know you've studied thoroughly. The allegations are significant.
I want to read to you from an article that appeared in "The New Yorker" magazine, the February 27th issue, referring to one Mohammed al-Katani (ph), a detainee at the U.S. naval base at Guantanamo Base, someone who is suspected of having played a role in terrorism against the United States.
"Mohammed al-Katani had been subjected to 160 days of isolation in a pen perpetually flooded with artificial light. He was interrogated on 48 of 54 days for 18 to 20 hours at a stretch. He had been stripped naked, straddled by taunting female guards in an exercise called invasion of space by a female.
"Forced to wear women's underwear on his head and to put on a bra. Threatened by guards, placed on a leash, and told that his mother was a whore. Eventually, he needed cardiac treatment because his health had deteriorated so significantly."
Is that torture?
ALBERTO GONZALES, ATTORNEY GENERAL: Wolf, I have no way of knowing whether any of that information that you've just read is, in fact, true, or how much of it is true. It's easy to make allegations about mistreatment in places like Guantanamo.
What I can say is that we have worked very hard throughout the administration to ensure that everyone understands what the legal requirements are. And to the extent that people aren't meeting those requirements, there are investigations, and people are held accountable.
BLITZER: Should the Guantanamo Base be shut down, as the United Nations Secretary General Kofi Annan says? He says, "I think sooner or later, there will be a need to close Guantanamo. And I think it will be up to the government to decide, hopefully, to do it as soon as possible." What do you think?
GONZALES: Well, we operate Guantanamo because of necessity. And so, if the need were not there for the United States of America to detain people that we catch on the battlefield, then we would not be having to operate Guantanamo.
We are continually reassessing all of our activities in the war on terror, including operational facilities like Guantanamo, to ensure that they remain effective as a tool in the war against terror, and that they remain lawful.
So this is something we are constantly reevaluating in terms of -- what is the appropriate way ahead to ensure the national security interest of our country, and to ensure that we're fighting this war against a deadly enemy in a lawful manner?
BLITZER: You were the White House counsel, now you're the attorney general. You know all the laws that have been enacted, the guidelines. Are you comfortable in saying that you would hope that American detainees held by a foreign government would be treated as foreign detainees are being treated by the U.S. government?
GONZALES: What I would hope is that foreign governments would meet their domestic and international legal obligations with respect to treatment of people that they hold in their control, which is exactly what the United States of America is doing.
BLITZER: But if Americans were treated like the foreigners at Guantanamo or Abu Ghraib, would you be satisfied with that?
GONZALES: Well again, what we saw at Abu Ghraib was horrific. It should not have happened. It was not authorized. We have condemned it. And those involved in that kind of conduct -- there have been investigations, and they've been accountable. So that would be totally unacceptable.
BLITZER: Let's talk about the Patriot Act, which the president is signing today. There's still a lot of concern out there that the government is going too far. Even though it's been passed by the Senate and the House, the president is signing it, there is this sunset provision.
It's going to go out of business in a few years because of this concern. Are you satisfied that the sunset provision is OK right now, or would you have liked to have seen it kept in an open-ended basis?
GONZALES: Well, I think as a general matter such as a criminal law provisions, criminal law enforcement tools are not subject to sunset. We're only talking about two of the 16 provisions which were scheduled to expire continue to remain subject to sunset. One deals with roving wiretaps, and the other deals with the business record section.
And again, this is an example where Congress wanted additional time to evaluate how these tools were being used to ensure themselves that the Department of Justice was acting in a responsible manner, I suspect, in utilizing these tools within the next four years.
But I'm thankful for the Congress. I'm thankful for the leadership of Chairman Sensenbrenner and Chairman Specter in moving this forward. And I think that this is important for the national security of this country.
BLITZER: One final question, Attorney General. It may sound a little self-serving because I'm journalist, but the sense out there is that the Justice Department is aggressively going after journalists in a way that wasn't done in previous administrations, bringing them before judges, even sending them to jail in connection with criminal investigations.
How concerned are you, if you are at all, that you may be going too far in undermining some of the First Amendment rights, the procedures that have been in effect for so many years?
GONZALES: Well, I believe very strongly in the First Amendment. And I respect the role of the media in informing the public about what the government's doing. We have a set of procedures in place about dealings with the media. Those procedures have been in place for many, many years. And we are acting consistent with those procedures, Wolf.
BLITZER: Are you concerned, though, there could be a chilling effect as far as a free press in this country is concerned?
GONZALES: Well, I think we need to have a free press, and we need to have a strong press. But we also need to have a way for the Department of Justice to gather up information that may serve to be valuable evidence with respect to the commission of a crime. And so those are two very strong competing principles that I think have to be accommodated and should be accommodated.
BLITZER: Attorney General Gonzales, thanks very much for joining us.
GONZALES: Thanks, Wolf.
(END VIDEOTAPE)
BLITZER: And from Washington, let's head down south. There are some significant storms developing. Our new meteorologist Reynolds Wolf joining us. He's watching these storms for us.
Reynolds, what's going on?
(WEATHER REPORT)
BLITZER: We always need another Wolf at CNN. Thanks very much, Reynolds, for that.
Still to come, more on the port deal imploding. I'll talk about that and more with our world affairs analyst, William Cohen. He's standing by to join us live, here in THE SITUATION ROOM.
Plus, is there water on a distant moon? And what does that mean if there is? Our Internet reporters are going to tell you what's going on. Stay with us.
(COMMERCIAL BREAK) BLITZER: The ports deal imploding and rising concern about Iran's nuclear ambitions. Our world affairs analyst William Cohen is here to talk about both. He's a key member of our CNN security council, a former defense secretary, now the head of the Cohen Group here in Washington.
How much long long-term damage to the U.S.-UAE relationship do you envisage as a result of this port deal collapse?
WILLIAM COHEN, FORMER DEFENSE SECRETARY: It's much too early to tell. It's hard to tell how the emirates will react to this. The old adage, revenge is a dish that's best served cold. And I'm not suggesting there will be any revenge being taken, but there's an element of humiliation involved, a rejection of a country that's been very aggressive in helping to supporting this war against terror.
And we may find it in a situation where a loss of some commercial activity. It maybe a less hospitable place in terms of our visiting with our port calls and so forth. But I tend to doubt it, but it's possible.
I think that they are very sophisticated. They have very sophisticated leadership. And even though I think they're hurt by this, they'll continue to support us in this war against terror. But it's hard to say.
BLITZER: The U.S. Navy spends more time in Dubai than in any other port around the world outside of the United States. I was just there in the last few days, and all the U.S. military personnel I saw were deeply appreciative of the strong relationship. General Abizaid testified about it today, the head of the U.S. military central command. Listen to what the chairman of the joint chiefs of staff said today before the Congress, General Peter Pace.
(BEGIN VIDEO CLIP)
GENERAL PETER PACE, JOINT CHIEFS CHAIRMAN: In every way that we have need them to help us militarily, they have responded favorably. And as you look to potential problems in the future in that region, the United Arab Emirates' location and capacity will be critical to our ability to succeed.
(END VIDEO CLIP)
BLITZER: That sounds like a reference to potential problems with Iran. And the UAE being as strategically located in the gulf as it is could have a significant role militarily in terms of U.S. naval and air assets.
COHEN: Well, it's important why we're looking to them for support for our effort in the region. But I would say that I don't think they're going to be looking for ways in which they can facilitate any attack upon Iran. That's certainly not their position, and I doubt it will be in the future.
They are a strategic partner in the sense that they can help us maintain this war against terror, certainly in Iraq. One other point to make. We've been critical of my Arab countries for not having leadership that would step forward and support the United States. Where are the moderate Arabs?
Well, UAE is in a modern Arab state. And so I think we send a signal to them that Arabs need not apply when it comes to any security aspect of the United States security concerns.
But ironically, the greatest concern we should have is the ports where the goods emanate from, exported into this country. That's where the most critical need is to have good security. And they will continue to play a key role there.
So I think the embarrassment will be short-lived, but nonetheless, it's going to be an element involved that maybe they shouldn't be quite so supportive of the United States.
BLITZER: How worried are you about this escalating rhetoric now between the U.S. and the Iranians? The Iran saying, you know, "We can harm the United States," in effect, saying, "Let the ball roll. Bring it on," one of the Iranian national security advisers said yesterday. It looks like that rhetoric is really heating up.
COHEN: Well, I think the rhetoric is really counterproductive for the Iranians. The more the rhetoric is elevated, the more the Europeans are going to be concerned about what Iran is up to. And it's critical for the future, as far as we're concerned, that we hold onto European support that is very much against Iran going forward with the nuclear program.
And that the key to holding the European support will also be including Russia. So to the extent that these kinds of statements are made, this level of rhetoric, it's going to work against Iran rather than for it.
We, by contrast, have to maintain a lower level, a lower decibel level of our own rhetoric. We have to proceed with the United Nations, the IAEA, saying this would be adverse to the international community's interest to have Iran go forward, and seek ways in which we can, in fact, bring them around about to the international community's position.
So I think lowering the rhetoric will be beneficial to us. Increasing it on their part will be harmful to them. And what we have to do is hold on to the Europeans. And if we can do that, we have a better chance of preventing them from moving forward.
BLITZER: William Cohen, thanks for joining us.
Lou Dobbs getting ready for his program. That begins right at the top of the hour. Lou, I think I know who you what you're working on, but give our viewers a preview.
LOU DOBBS, CNN ANCHOR: You would be right, wolf. Coming up here on CNN at 6:00, 26 days since we first brought you the story of the Dubai Ports World deal. Congress today responding to the will of the people. We'll have a special report on what now happens to the operations of those six U.S. ports. And, oh yes, what about the other 15 ports involved in the Dubai Ports World deal?
We'll also have a special report tonight on the Bush administration's commitment to commerce and so-called free trade over foreign policy and the national interest. I'll be joined by Congressman Duncan Hunter, the powerful chairman of the House Armed Services Committee, Congressman Pete King, chairman of the House Homeland Security Committee.
Also instrumental in the outcome of this deal, Senator Robert Menendez, one of the first to oppose the deal. He'll be our guest. As well, Democratic congressman Barney Frank. And I'll be talking with our distinguished panel of political analysts about what this means going forward for the Bush White House, the Republican Party, and whether the national interest is now the priority of this government. We hope you'll be with us.
Wolf, back to you.
BLITZER: All right, Lou. Thanks very much. Lou Dobbs coming up shortly.
Up ahead, Shia and Sunni Muslims leaving mixed neighborhoods, seeking safety elsewhere amid tensions in Iraq.
Plus, a spacecraft making a surprising find on a distant moon. Our Internet reporters standing by to show us what they're finding online. Stay with us.
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BLITZER: U.S. military is preparing to transfer detainees from the notorious Abu Ghraib prison to a new facility. A U.S. military spokesman in Iraq says the facility is being enlarged at the Baghdad airport will be ready to receive 4,500 Abu Ghraib detainees within two to three months. But a Pentagon official says there's no timetable yet for the move.
As sectarian violence rages on in Iraq, many officials fear Iraq is poised on the brink of civil war. But what happens if it goes over the brink. What would American troops, 130,000 of them, do then? The defense secretary, Donald Rumsfeld, faced those types of questions on Capitol Hill today.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Is there any plan to respond to a civil war in Iraq?
DONALD RUMSFELD, U.S. SECRETARY OF DEFENSE: The plan is to prevent a civil war. And to the extent one were to occur, to have -- from a security standpoint, have the Iraqi security forces deal with it to the extent they're able to.
(END VIDEO CLIP) BLITZER: The sectarian violence in Iraq is leading to Shias and Sunnis fleeing mixed neighborhoods for their own safety. CNN's Aneesh Raman is in Baghdad with details -- Aneesh.
ANEESH RAMAN, CNN CORRESPONDENT: Wolf, sectarian tensions here are now forcing Iraqis out of their homes.
(BEGIN VIDEOTAPE)
RAMAN: Fighting to hold back tears, 85-year-old Mossen (ph) is struggling to keep his family together. The Shia resident of a Sunni neighborhood in Baghdad, he fled his home along with his five sons and 13 grandchildren. They fear for their lives.
He received a death threat, a letter that said he had to leave that night, he says. "I saw all of my neighbors leaving, too, in front of my eyes." That night was February 25th, three days after the bombing of the Shia Mosque in Samarra. An attack that ignited sectarian fury with Shia and Sunni turning on one another.
For now, Mossen's family has found refuge in a Shia area. Over 30 people sharing two rooms, finding comfort, they say, among their own. One family, but Iraqi officials fear one of many. Nearby, Mossen says, more Shia families can be seen fleeing their neighborhoods.
And Sunnis are fleeing as well. North of the capital in the Sunni town of Bors (ph), a Sunni mosque has been turned into a hub for humanitarian aid. Food, clothing, money, donated by residents, given to Sunnis displaced from a nearby mixed neighborhood, after threats, they say, from Shia militias.
It's understood they must help their own, even if they cannot comprehend the religious fault lines. "This did not happen before, we were in full harmony between Shia and Sunni," says this woman. "This all came with the occupation." But it's a divide that is now impossible for them to ignore.
(END VIDEOTAPE)
RAMAN: And for all these families, the biggest pain, of course, is the uncertainty, not knowing when they'll be able to return home -- Wolf.
BLITZER: Aneesh Raman in Baghdad, thank you very much.
Zain Verjee joining us once again from the CNN Center in Atlanta with a closer look at other stories making news -- Zain.
VERJEE: Wolf, a couple of stories we've been following around the world. Police in Sweden can now wear turbans, the head scarves, or Jewish skull caps on the job. Uniform restrictions have now been relaxed. The new policy is intended to attract more ethnic minorities to the country's police force. They've been criticized for not being diverse enough And in France, a former teacher surrendered after holding 21 high school students hostage for several hours today. Police say that he was armed with a fake gun made of plastic. Two teaching assistants were also held hostage. Authorities say the man was taking medication, and he was under the influence of alcohol. Officials say he was depressed about losing his job at the vocational school -- Wolf.
BLITZER: Zain, thank you very much.
There's a startling discovery -- potentially, at least -- from NASA, a possible sign of life on another planet. To be precise, evidence of liquid water near the surface of one of Saturn's moons. For a closer look, let's go to our Internet report, Abbi Tatton -- Abbi.
ABBI TATTON, CNN INTERNET REPORTER: Wolf, they may have found water, which has the potential for being very significant. NASA scientists are being very careful about how they couch this, but it's fair to say they're pretty excited about this discovery.
It's the Cassini mission. This is a spacecraft launched in 1997, which has been recording images of Saturn. And this is what everyone is so excited about. Radiating out, coming out of the moon, one of the moons here, what scientists this are icy plumes of material coming out there.
They're describing it this way. They think that there are pockets of water under the surface, and then water is coming out there. Now, the full results of this study are going to be published tomorrow in the journal "Science" -- Wolf.
BLITZER: All right, Abbi. Thank you very much.
Up next, how will the collapse of the ports deal effect the midterm elections? Jack Cafferty is standing by with your email.
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BLITZER: There he is. Jack Cafferty. A close-up shot of the man -- Jack.
CAFFERTY: That will get those rodents out of the room right away, you get that close-up shot. The question this hour is this, how will the collapse of the ports deal affect the midterm elections? Here is what some of you have written.
Joel wrote from Dallas, Texas, "Jack, the collapse of the port deal does nothing to change my plans to vote. All of them are getting notices of eviction."
Henry in Orlando, Florida: "Bush had nothing to lose by backing a deal that he knew would collapse. After all, he can't be reelected. This was all about shoring a do-nothing Republican Congress on the basis of what works best: fear. And once again, the Democrats and the American people fell for it." Hank in New York: "The withdrawal of DP World removes a potential arrow from Democrats' quiver, saving between five and 15 Republican-held seats in the House."
Stan in Champagne, Illinois: "I don't know what it says for the midterm elections, but I'll remember who supported it, who caved under pressure, who flipped, and who didn't. This isn't the end of this thing, though. Nobody drops a $40 billion deal. Dubai will pull some kind of Halliburton offshore P.O. box kind of thing, and our diligent press will miss the whole thing. Just wait, it'll happen."
Susan in Tewksbury, Massachusetts: "I think if the Democrats can keep punching, the GOP could go down in November."
And Michael in Los Angeles: "A smart Democrat running for office against a smart Republican need only to hold up a picture of a shipping container and ask, 'On how many other issues have you fallen asleep at the switch?'" -- Wolf.
BLITZER: You know, Jack, there's a lot of chatter out there on the web right now that Halliburton is going to get these six ports. Can you imagine what the uproar would be then? I don't think that's going to happen.
CAFFERTY: I don't think -- I mean, they're brazen, those folks in Washington, but I don't think anybody down there's got nerve enough to do that. I mean, I'm cynical, but even I don't think that's going to happen.
BLITZER: Jack, we'll see you in a little while. One hour, to be precise. Jack Cafferty joining us from New York.
Remember, we're here in THE SITUATION ROOM every weekday afternoon from 4:00 to 6:00 p.m. Eastern. We're back in one hour, 7:00 p.m. Eastern. Lots more coming up at that time on the ports deal collapse. I'm Wolf Blitzer, reporting for THE SITUATION ROOM.
"LOU DOBBS TONIGHT" starts right now.
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