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The Situation Room
Post-Mortem of Dubai Ports Deal; Looking Ahead to 2008 Elections; NASA Orbiter Nears Mars
Aired March 10, 2006 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: To our viewers, you're now in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, post-mortems on the death of the Dubai Port deal. It's 4:00 p.m. here in Washington, where President Bush says he's concerned about the message sent by Congress. And his problems with fellow Republicans may not be over yet.
Also, this hour, running in Memphis. It's 3:00 p.m. in Tennessee, where top Republicans are testing the presidential waters. Who is there? What do they hope to get out of this whole event? We're live at this kickoff event.
And welcome to Mars. A NASA spacecraft is due to enter the red planet's orbit this hour if the agency gets everything just right. It's 1:00 p.m. at the jet propulsion lab in Pasadena, California. We'll be following the suspense in outer space.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
We'll get to all of that in a moment. But there's a developing story we're following out of New York City, specifically at LaGuardia airport. The Delta terminal there apparently shut down after an incident at the security check point.
Someone apparently walked up to the security checkpoint, left his shoes and then simply ran away. That caused an alert as is standard operating procedure. They're searching for this specific individual. We are going to have much more on this story coming up.
The Delta terminal at LaGuardia right now shut down. Some sort of security scare. We'll see how significant it is. Much more on that coming up this hour.
At the same time, the president is trying to conduct business as usual at the White House after one of the most eye popping defeats of his presidency. Mr. Bush spoke out today about the collapse of the Dubai Ports deal and its global impact.
At the same time, members of Congress are facing some new political realities created by the port storm. Our congressional correspondent Ed Henry is standing by, but let's go to the White House. Dana Bash on the scene for us with the latest -- Dana. DANA BASH, CNN CORRESPONDENT: Well, Wolf, as you can imagine, I'm sure, this White House Bush aides are really looking forward to getting what they admit was a political mess behind them. But they also knew that wasn't going to happen until we heard from the president himself on this issue.
So he went before a group of newspaper executives this morning. It was a Q and A session, but he didn't wait for a question. Unprompted, he talked about the issue.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm sure that the decision by DP World was a difficult decision to hand over port operations that they had purchased from another company. My administration was satisfied that port security would not have been undermined by the agreement.
Nevertheless, Congress was still very much opposed it. My administration will continue to work with the Congress to provide a greater understanding of how these transactions are approved, the process, and how we can improve that process in the future.
(END VIDEO CLIP)
BASH: Now, the president clearly lost this surprise battle with his own party in Congress. But he didn't end this today without getting one last shot at the rebels in Congress, if you will. He said that he is concerned about the broader message this issue could send to, in his words, "our friends and allies around the world, particularly in the Middle East."
So clearly they are trying to say that he thinks what members of his own party did was a slight to some crucial allies in the Arab world, particularly, obviously, the United Arab Emirates.
But, Wolf, despite the fact this whole political firestorm many think was exacerbated by the fact that the president issued that veto threat. Even some of the president's allies say that they think that was the case.
A senior administration official says today that the president does not think that was a mistake. He stands by making that political move -- Wolf.
BLITZER: What about Iraq? The president also spoke out about the current situation, the sectarian violence in Iraq. What's his bottom line message, Dana?
BASH: Wolf, you and I have talked about the fact that no matter what the ports issue, anything else that comes up, Bush aides fundamentally believe that the main thing that is dragging down his approval rating is the war in Iraq. That has been the case for some time and still is.
And next week, as you know, is going to be the third anniversary of the beginning of the war in Iraq. So the White House is preparing. It is really already starting to have yet another push to try to turn around public opinion on Iraq.
And we have a photograph, I think, that shows you that this effort is already underway. There you see a picture the White House released today of the president conducting a national security meeting, a secret meeting that we almost never see pictures of in the real situation room, if you will.
That is something that really starts off perhaps what the White House is going to do next week. Aides says next week and really into April, but particularly with a push next week, Mr. Bush is going to make some speeches, trying to hone in on a couple of different issue.
Monday will be what the say is security, trying, for example, to better explain the concept and the problem of IEDS and how he will say the White House or specifically the U.S. military is trying to deal with that -- Wolf.
BLITZER: From the White House situation room to the CNN SITUATION ROOM, Dana, thanks very much for that.
A new snapshot today of the president's political troubles. An AP Ipsus Poll shows Mr. Bush's approval rating dipping back to 37 percent, his lowest rating in that survey. The president's approval rating was 38 percent in our CNN "Usa Today" Gallup poll that was released eight days ago.
Back to the collapse of the Dubai Port deal. Many members of Congress are heading home this weekend eager to taut their respective roles in the deal's demise.
Our congressional correspondent Ed Henry back on Capitol Hill with more on this part of the story.
Ed, what are you picking up?
ED HENRY, CONGRESSIONAL CORRESPONDENT: Well, Wolf, you know, Democrats for months even years have heard complaints from within their own party that they failed to capitalize on President Bush's missteps. Well, this time Democrats finally scored some points on the ports controversy, and they are hoping Republicans will pay a price at the polls.
(BEGIN VIDEOTAPE)
SEN. CHARLES SCHUMER, DEM. SEN. CAMPAIGN CMTE. CHMN: I think people were surprised that the president who has been so strong on security didn't even want to have a full investigation before making up his mind.
HENRY (voice over): Democrats are taking that message to key states like New Jersey, where just a few weeks ago Senator Bob Menendez was trailing Republican Tom Kean Jr. But after Menendez became one of the most vocal critics of the ports deal, one poll now shows him leading by five points. Another has him locked in at dead heat with Kean.
STUART ROTHENBERG, POLITICAL ANALYST: Democrats saw an opening to present themselves as tough, even tougher than the president on fighting terrorism and protecting the nation's security.
HENRY: It's far too early to determine whether this translates into Democratic gains in November. But what's clear is the issue of security is now a wild card, a far cry from the prediction of the president's top political adviser just six weeks ago.
KARL ROVE, TOP PRESIDENTIAL ADVISER: Republicans have a post- 9/11 view of the world, and Democrats have a pre-9/11 view of the world, that doesn't make them unpatriotic, not at all. But it does make them wrong, wrong deeply and profoundly and consistently.
HENRY: On Friday, Republican Speaker Dennis Hastert accused Democrats of trying to take political advantage of everything including the ports flap but said, quote, "ask them what they stand for and they're blank."
And since Hastert and many of his House Republican colleagues blocked the deal, having such a high profile break with an unpopular president could work to their political benefit.
ROTHENBERG: There's a silver lining that said Republicans can say they took on George W. Bush on this, and they defeated him.
(END VIDEOTAPE)
HENRY: Now Speaker Hastert was perhaps able to inoculate House Republicans a bit from the political fallout by getting them on record against this deal before it went down.
Senate Majority Leader Bill Frist didn't give his Republican colleagues that chance by blocking a vote on killing the ports deal. Still Democratic Senator Chuck Schumer is still pushing for a vote to make sure the deal is killed once and for all. He still wants the Senate to vote on it just to make all the legal wrangling -- when it's all said and done, this deal is dead and buried -- Wolf.
BLITZER: All right. Ed, thanks very much.
Does the transfer, as it is called, of the U.S. ports deal to a U.S. entity mean sell to a U.S. company? There are still many lingering questions online. For more on that part of the story we will turn to our Internet reporter Abbi Tatton -- Abbi.
ABBI TATTON, INTERNET REPORTER: Wolf, there are certainly people who are saying this is over and victory, that kind of thing. But there are still questions out there. Looking around some of the blogs.
One of the first people to raise doubts, Andrew Sullivan pointed out that this term American entity or U.S. entity is an amorphous term. We still have to find out more. On the left, The Carpetbagger Report, this was rounding up some of the news reports this morning, saying that this is a little bit vague. There are still some details out there that we don't know. Is this company -- is Dubai Ports World going to sell off this investment or create a subsidiary?
If you look around some of the blogs, you see this term an United States entity. It's out there a lot. And it is often put in quotation marks.
Now we have been pressing Dubai Ports World, as well, on what exactly this means. We just received a statement from them. They say today, "We are talking to our advisers and the Treasury Department about the ways to move forward."
So, Wolf, still some questions out there lingering.
BLITZER: And maybe we will get some answers sooner rather than later, Abbi. Thanks very much.
We are going to have a lot more here in THE SITUATION ROOM on the ports storm.
Jack Cafferty is about to weigh in. We will also talk about the political fallout with our Donna Brazil and Bill Bennett in today's "Strategy Session."
And next hour -- this is very important -- we're going to get the first official reaction from the government of the United Arab Emirates. I will speak exclusively with a top official from the UAE. That's coming up right here in THE SITUATION ROOM.
In the meantime, let's check in with CNN's Carol Lin. She's joining us from the CNN Global Headquarters with a quick look at other stories making news. Hi, Carol.
CAROL LIN, CNN ANCHOR: Hi there, Wolf. We're talking about a big gang bust, 375 gang members in 23 states are behind bars right now. The Department of Homeland Security says the arrests were made just in the past two weeks.
It's part of a nationwide crackdown called Operation Community Shield, targeting members of violent gangs. More than 2,000 people have been arrested in the crackdown just in the past year.
And Russia is urging more talks on Iran's nuclear program. The five permanent members of the U.N. Security Council are meeting behind closed doors. They're working on a statement to get Iran to explain if it's trying to build nuclear weapons. Now, U.S. officials say it's time to act after three years of failed negotiations. President Bush today called Iran "a grave national security concern."
And more bloodshed in Iraq today. A string of attacks has left at least 15 people killed. Several dozen more were injured and some of the bombings happened in Samarra. That's where an attack on the revered Shiite Golden Mosque triggered the rise in sectarian violence two-and-a-half weeks ago. The U.S. military confirms the death of a U.S. marine. And that brings the total number of U.S. troops killed in Iraq to 2,307.
Interior Secretary Gale Norton announced today she is resigning at the end of the month. She is the first woman to hold the post. Now, Norton says after five years, it's time to set her sights on new goals in the private sector. She has led the Bush administration's initiative to open government lands to increased drilling.
And, Wolf, she just wants to get back to those mountains that she loved so much when she was attorney general in Colorado.
BLITZER: She's a very nice person and we wish her only the best. Thanks very much, Carol, for that.
Let's check in with Jack Cafferty now in New York. He's got "The Cafferty File." Hi, Jack.
JACK CAFFERTY, CNN ANCHOR: Hi, Wolf. President Bush says the collapse of the Dubai ports deal sends a bad message to U.S. allies in the Middle East. In order to win the war on terror, he says, the United States needs to, quote, "strengthen our friendships and relationships with moderate Arab countries," unquote.
Americans image was already hurting in the Arab world because of the war in Iraq and U.S. support for Israel, and some say the Arab business industry was the last refuge for pro-American feeling over there.
Today, Arabs in the region say the political storm over this deal could create a backlash among investors. Others say the close military relationship between the United Arab Emirates and the United States could become strained.
Here's the question then. How do you think the collapse of the ports deal will affect America's relations with the Arab world? You can e-mail us your thoughts at caffertyfile@cnn.com, or you can go to cnn.com/caffertyfile -- Wolf
BLITZER: Thanks, Jack. We'll speak with you very soon.
Coming up here in THE SITUATION ROOM. much more on the ports deal.
Also, John McCain's surprise move in a showcase event for Republican presidential prospects. We're going to go there live, a live report from the main event in Memphis.
Also ahead, are Democrats making too much of Senator Hillary Clinton's White House ambitions? We're covering every angle of the early race to 2008.
And does Arnold Schwarzenegger have a new fight on his hands? The first sanctioned "cage fight," as it's called in California, could leave the governor bruised. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: The next presidential election is two years and eight months away, but as you've probably noticed, would-be candidates already are scrambling for early support. That brings us to today's event in Tennessee. Top Republicans are putting their White House ambitions to the test right now.
Out senior national correspondent John Roberts is joining us from the Southern Republican Leadership Conference in Memphis. John, what's going on?
JOHN ROBERTS, CNN SENIOR NATIONAL CORRESPONDENT: Hey, good afternoon to you, Wolf. It's a big weekend here in Memphis because for the 1,800 or so delegates, this is their first opportunity to see most of the potential candidates for the 2008 president election in the same place at the same time.
And this election is going to be very interesting as well, because it will be the first time since 1908 that a sitting president or vice president haven't run for reelection. And on the Republican side, the field is wide open.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): The parade of famous Peabody Hotel ducks was the early draw, but it's the parade of possible presidential candidates that people are really here to see.
DEBBIE LOVE, DELEGATE: I'm listening. I'm opening, taking notes, seeing, you know, watching communication skills, ideas, direction, vision. Really, it's vision.
ROBERTS: While no one has yet declared, they're all laying the groundwork. Senator John McCain's people were in early to chat up party officials. Massachusetts Governor Mitt Romney held morning meetings behind closed doors, the backstage politics as important as the public reception of being presidential.
GOV. MITT ROMNEY (R), MASSACHUSETTS: There have been some tough times in our nation's history. Every time we face them, we lift right up and we face them and we overcome them.
ROBERTS: Rudy Giuliani didn't make the conference, though the other hopefuls will all be here -- Senator Majority Leader Bill Frist, Virginia Senator George Allen, Governor Mike Huckabee of Arkansas, and Kansas Senator Sam Brownback.
It's the first cattle call in the 2008 presidential race, but with President Bush's popularity way down and control of Congress at stake, the first test for the candidates, says party chairman Ken Mehlman, is this year's midterm election.
KEN MEHLMAN, REPUBLICAN NATL. CMTE. CHMN.: We're going to watch -- they campaign hard to make sure that we keep a Republican majority in the House a Republican majority in the Senate. So mark my words, the first primary of '08 is what the candidates do in '06 to keep our majority.
(END VIDEOTAPE)
ROBERTS: Now, we may get a better idea of how the delegates are feeling with the results of a straw poll to be taken tomorrow. But Mississippi Senator Trent Lott has already said, well, Bill Frist from Tennessee has stacked the deck for that straw poll by bussing in delegates from Nashville.
And tonight in his speech, Senator John McCain will say, well, instead of voting for the potential contenders of 2008, as a measure of solidarity, let's all write in President George Bush's name. Now, there's a guy, Wolf, who is running for president.
BLITZER: What about the buzz behind the scenes, John, as far as the collapse of ports deal -- the Dubai ports deal? What are Republicans saying there?
ROBERTS: Well, you know, I'm getting a mixture of opinions. Some people say it was a bad deal to begin with, but most of the people that I have talked with have said that this was Congress' mistake, that they don't believe that the president was going to sell national security down the river. There's a lot of trust in President Bush here in Memphis, and so they're placing the blame -- if there is any -- on a hasty decision by Congress.
BLITZER: And John's going to be back in the next hour with more from Memphis. John, thanks very much.
We don't want to overlook the Democrats' prospective presidential candidates. Many view Senator Hillary Clinton as the very early front runner, but a new field poll that voters in Democratic-leaning California are closely divided on whether they'd actually vote for Senator Clinton for president.
Our chief national correspondent John King is keeping tab of all the Democratic contenders. He's joining us live -- John.
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: And Wolf, there's a reason so many people pay so much attention to Senator Clinton. She can raise more money than most of the other Democrats, and she knows how to win a campaign for the White House. In fact, she's even lived there for eight years.
(BEGIN VIDEOTAPE)
KING (voice-over): Any talk of the Democrats in 2008 starts here, though the junior senator from New York first has a 2006 race to worry about.
STAN GREENBERG, DEMOCRATIC POLLSTER: She's smart. She'll have a good win, you know, in New York. And she'll be the front-runner, you know, going into the primaries.
KING: Many Republicans relish the thought; others aren't so sure. CHARLIE BLACK, REPUBLICAN STRATEGIST: Some people think Hillary Clinton's a polarizing figure and might be easily beatable. I do not think that. I think she's a very impressive, disciplined campaigner, and we need to put our best candidate forward and fight hard to defeat her.
KING: In the early -- emphasis on early -- polling, familiar names follow the leader. 2004 nominee John Kerry says he's thinking about another run, but no decision for a while. 2000 nominee Al Gore sat out the last one, but two Democrats who chatted with him lately say don't bet on it, but don't rule out a 2008 comeback attempt.
Pollster Greenberg says Democrats like Kerry and Gore just fine, but sees a sense of been there, done that.
GREENBERG: The pressure for change by 2008 is going to very great. Change in face, change in direction.
KING: From there, things turn South. Former North Carolina Senator and VP candidate John Edwards is making the rounds, as is former Virginia Governor Mark Warner, who thinks come 2008, Democrats will be in the mood not from Washington, and not just competitive in blue states.
MARK WARNER (D), FMR. VIRGINIA GOVERNOR: A Democratic party that's actually competitive in all states, rather than simply 16 or 17. That serves to benefit not only the Democrats, but it serves the benefit of the whole country.
KING: As important as who runs for the Democrats, though, why would be the bigger issue.
GREENBERG: Voters don't know what they stand for. There needs to be clarity of vision. There are a whole series of new problems that Democrats haven't really spoken to effectively.
(END VIDEOTAPE)
KING: And we should be fair to some of the other candidates already out there making the early rounds. They include former governor of Indiana, now Senator Evan Bayh. He's been to Iowa lately. He also, like John Edwards and Mark Warner, says I can win in a red state. Governors Vilsack of Iowa, Governor Richardson of New Mexico, Senator Feingold of Wisconsin, running as a someone who was against the war. And a reform candidate in Senator Joe Biden of Delaware, Wolf, also hasn't said whether he will make the race or not. He's testing the waters a bit.
And just as Ken Mehlman, the Republican chairman, noted, in John Roberts' piece, Democrats say this: "Talk all you want about the people running now. This race will be changed dramatically by how the Democrats do in 2006."
BLITZER: Good reporting, John. Thanks very much. We're going to come back to you, as well. Right now NASA's exploration of Mars is literally on the line and Mission Control is facing a critical test. Can the space agency do what it takes -- whatever it takes -- to get its spacecraft into orbit around the red planet?
Our space correspondent Miles O'Brien, as usual, is following all the action. He's joining us live with the latest.
Miles, this is happening right now. Explain to our viewers the significance of what we're about to see.
(BEGIN VIDEOTAPE)
MILES O'BRIEN, CNN SPACE CORRESPONDENT: We are 45 seconds away, Wolf, from a critical engine firing, this Mars Reconnaissance Orbiter. As you look at live pictures right beside me there, the jet propulsion laboratory, Mission Control in Pasadena, California, those guys are just about to begin holding their breath, because in 30 seconds time, that engine should light up, and it should slow down the reconnaissance orbiter just enough to allow it to be captured by the gravitational pull of Mars.
Here's what makes it even more dicey. Not long after this engine firing begins -- and it has to be 27 minutes; no more, no less. Either way it will be a useless burn, as far as NASA is concerned. A few minutes into it, about 4:45 Eastern time, the spacecraft will go behind. You notice they're taking -- see the nuts? See the peanuts they're using there? That's good luck, Wolf.
There's a long, old story about an old flight director who always had nuts in the control room, and so in honor of him, they always do that as good luck beforehand. A little bit of superstition there.
In any case, this 27 minute burn will complete while the Mars Reconnaissance Orbiter is on the dark side, the back side, shielded from Earth. And they won't know for sure whether, in fact, it's going to work out or has worked out well and whether the thing is in a useless orbit around the sun, until after 5:00, 5:16 Eastern time.
So the key now is for them to hold that those engines light up as expected, that they burn for 27 minutes. I see them applauding there. Let's listen for just a second, if we can. We can bring that up. Not much to it. They've applauded. That would tell you that the engines have begin firing there. We're going to walk you through this.
Let's take a look at some animation, if we could, just quickly, to give you a sense of what's going to happen now as this critical insertion maneuver -- this is a $700 million mission. It's the latest and greatest, as far as scientific equipment. It will see things on Mars that have never been seen before from an orbiter.
And as it comes in, that rocket is fired, that 27 minute period, slowing it down just enough. And this spacecraft will go through a series of so-called aerobraking maneuvers over the next few months. The scientific mission, which is what this all about, begins in the fall.
There you see it, it comes up from underneath the planet, and then goes into this area right here. This is the spot where they can't see it or hear it, and have no idea what's going to happen. They're going to hope that all the computer commands that they sent to it go off without a hitch.
Then at 5:16, it will come out right there and hopefully send back a signal to Earth. We'll be keeping you posted on that. Wolf, the key here is to find out where the water went on Mars, and, in doing that, they should be able to answer some pretty key questions about the possibility of life on Mars, whether it occurred there at one point or whether there are things that are living there now, perhaps beneath the surface, in some sort of underground aquifer -- Wolf.
BLITZER: So this is really historic. This is potentially, Miles, very significant scientific information for all of us.
O'BRIEN: Yes, and it's -- it's a dicey proposition. I should remind you, one in three Mars missions over the years succeed. It's kind of like being a Major League hitter, .333 is all they've done.
And you'll recall, I'm sure, Wolf, back in the fall of '99 when NASA lost two of these spacecrafts -- one of them an orbiter, one of them a lander. In one case, the orbiter, two teams of engineers got confused between the metric and the English system. In the other case, the orbiter confused the deployment of the landing gear for landing on the surface and shut off the engines. So a lot of things can go wrong. We'll be watching it very closely. We'll keep you posted, Wolf.
BLITZER: We'll be back with you, Miles. Thanks very much. Miles O'Brien reporting. And Miles is going to be back once again in our next hour. We expect the orbiter to reemerge from behind Mars and Miles will have all the latest information.
Coming, a lot more ahead on the race for 2008. What's the best strategy at this early point for the presidential contenders? I'll ask our experts Donna Brazile and Bill Bennett. They're standing by.
And how seriously should we take this early straw polls in the race to the White House? Jeff Greenfield standing by with his take on the road down Memory Lane.
You're in THE SITUATION ROOM, where political news is arriving all the type. CNN, America's campaign headquarters.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
In our "Strategy Session" today, the port deal might be off, but the political clamor has not quieted. Will the president be able to recover from the damage? Could the fallout sway voters in November?
Joining us now, our CNN political analyst Democratic strategist Donna Brazile, and Bill Bennett, the host of the radio show "Morning in America."
Guys, thanks very much for joining us. There's going to be ramifications from the collapse of this deal. And the president himself spoke of that to newspaper editors earlier today. Listen to what he said.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm concerned about a broader message this issue could send to our friends and allies around the world, particularly in the Middle East. In order to win the war on terror, we have got to strengthen our relationships and friendships with moderate Arab countries in the Middle East.
(END VIDEO CLIP)
BLITZER: You're not satisfied by that? You're smirking a little bit...
(CROSSTALK)
BILL BENNETT, FORMER EDUCATION SECRETARY: No, no, no. No, I don't smirk. No, just I'm wondering why he just doesn't let it be. It's over. And it's a good thing.
BLITZER: But there are important relations with the United Arab Emirates.
BENNETT: Of course they are. And these things need to be talked about. And he can explain how the U.S. Navy will still be able to be over there. And other things can happen in the Middle East. We can work with other nations.
But he needs to move on from this. This was a political defeat. This is not fatal. It's not terminal. There are more things he can do now. And the question is how -- how much balance there is. It's not the fact of disappointment.
George Elliott (ph) said, everyone has disappointments. It's the force that it stirs. And will this stir some force? And what will see the president putting forward? But saying -- griping at the American people or griping at the political leadership in both parties, other than the president, is not going to get him very far.
BLITZER: Clearly, Donna, the president's strategy right now is to salvage not only the U.S.-UAE relationship, but America's relationship with other moderate Arab states, Muslims states in that part of the world.
DONNA BRAZILE, CNN POLITICAL ANALYST: Well, I'm -- I'm glad to see the administration is focussing on that.
But, look, when you talk about torture, when you talk about detaining and, you know, rounding up Arab-Americans, I mean, we have a problem in the Arab community. But this was a -- this was a national security issue. And that's the reason why Democrats and Republicans alike joined together to oppose this deal. And the president is treating it like that -- like this was some kind of, you know, violation, when, in fact, people felt very strongly about port security.
BLITZER: Let me read to you a little sentence or two from today's "Wall Street Journal..."
BENNETT: Yes.
BLITZER: ... and on the editorial page, from the news page, on the front page, because it mentioned our reporting, to a certain degree.
"A CNN report from Dubai showed articulate and Western-educated Dubai leaders offering assurances that they would strictly maintain security at any port facilities they operated in the U.S. But aides to House Republican leaders reported that the sight of men in Arab dress saying they would handle port security only made the calls of complaint come in faster."
When I was there...
BENNETT: Yes.
BLITZER: ... earlier this week, we interviewed all the top leaders of Dubai Ports World, and they were wearing Arab dress.
BENNETT: Sure.
BLITZER: Clearly, that was not reassuring to a lot of members in in -- Congress, even though they were articulate, and -- and very educated...
BENNETT: There was...
BLITZER: ... and ran a good show.
BENNETT: There was some good, articulate defense. There were also some stumbling moments.
I remember one moment when you asked about Israel, when you asked about boycotts. And there was not a good and direct answer. The American people weren't sold on it.
Look, if this thing was so important, the president could have come and laid out the case and elaborated on what kinds of relations we need with the Arab countries, the sorts of thing -- the sort -- sort of thing he was hinting at today.
But he has got bigger fish to fry. Look, many of those countries need us more than we need them. Those relations are going to -- they are going to continue. He has got to focus on some other things. He needs to be talking about Iran. He needs to be talking about this war in Iraq, and get back to the main business.
BLITZER: Donna, the Republicans are insisting they -- they -- killed this deal. Duncan Hunter, the chairman of the House Armed Services Committee, says the Republicans killed this deal.
They want credit for it. They don't want the Democrats to be emerging as tougher on national security than the Republicans.
BRAZILE: Well, I'm sure the Republicans, in many ways, are running scared, because they gave the Democrats an opportunity to talk about the port deal itself. And that's one of the reasons why I think Republicans should be really wary now that Democrats can talk about port security and can talk about the broad issue of national security.
BENNETT: Well, they did kill the deal. I mean, if the Republicans would had been for the deal, you would have had the deal.
BRAZILE: They're the majority, no question.
BENNETT: It was -- yes, there's no question about it.
So, you know, when you talk about the politics now, it's not like the president, meaning the Republicans and the Democratic Party -- the Republican Party flexed its muscle this time. Unfortunately, for George Bush, it was against him. But it showed that it is powerful. It's strong. It's in charge. And it will make an agenda.
BLITZER: This -- very quickly, this -- I don't know what you want to call it, the -- this very early straw poll in Memphis right now, Republican potential presidential candidates showing up, Democrats obviously doing similar things.
It's -- it's very early, Donna. Is this...
BRAZILE: Well...
BLITZER: What is the importance? Why do they all go to these events?
BRAZILE: Well, first of all, this is an important time to meet the activists and to begin to -- to rally support, early support. And whoever wins that straw poll, this will allow the candidate to go out there and raise money and have a little bit of bragging rights.
BLITZER: So, it's for raising money and -- and -- and just getting some publicity. Is that it?
BENNETT: Yes, and introducing themselves. It's appropriate. Here we are. We are running, you know? And it's not a bad thing to happen.
I mean, the problem for the Democrats' side is that people are going to be tired of Hillary before it even stats. There's so much attention to Hillary Clinton. She's trying -- now, she's trying to be businesslike and professional. But the light that is on her, the media that is on her, they're -- they -- they could hurt her chances, while trying to help her.
BRAZILE: Well, she can handle the publicity.
BENNETT: Yes.
(LAUGHTER)
(CROSSTALK)
BRAZILE: As one of the most admired women in America, trust me, she can handle it.
BENNETT: She has been in publicity before. That's for sure.
BLITZER: We will leave it there.
Donna and Bill, thanks to both of you very much.
BENNETT: Thank you.
BLITZER: Coming up, I guess it's kind of obvious that a major player in the ports controversy will be our "Play of the Week." But who exactly will that be? Only Bill Schneider knows. He will reveal the winner. That's coming up next.
Plus, now that the Dubai Ports World deal is out, who may be in to take over operations at six major U.S. ports? We will get the situation online.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: More now on our top story that we were following right at the top of the hour, a security scare at the La Guardia Airport in New York.
Zain Verjee is standing by. She has got more.
What are we learning, Zain?
ZAIN VERJEE, CNN CORRESPONDENT: Yes. Let me just update you on what is happening right now, Wolf.
The Delta terminal over at La Guardia Airport in New York has been evacuated. Essentially, what happened was, a man was targeted for additional security screening. So, he went over. They ran a metal detector over him. He removed his shoes. And then he put them back on, and then he took off.
And -- and nobody knows where he is. So, what's happening now is that all inbound flights have been held, but -- rather, the in-bound flights are being allowed to arrive, but outbound flights are being held from terminal D at La Guardia Airport until this man has been found.
His shoes were checked using an electronic device. And, essentially, it checks for explosives or explosive substances. And the machine went off. It's -- it's important to note, though, Wolf, that, when the machine does goes off, it doesn't necessarily mean that there are explosives. It could be other substances.
But if anyone is traveling and is at La Guardia Airport, inbound -- inbound flights are being allowed to come in, but outbound flights, for now, from terminal D over at La Guardia are being held until this man is found -- Wolf.
BLITZER: And this is the main Delta terminal at La Guardia. There is a separate Delta shuttle terminal. That's the Marine Air Terminal, that apparently is not affected. But all other Delta flights at La Guardia, the main Delta terminal, clearly are affected because of the security scare.
All right, Zain, we are going to keep on top of this story and get back to you, as we get more information on what is going on.
More now on our top story. If Dubai Ports World determines it will sell to a U.S.-based company, who are the top contenders to take over?
Let's go to our Internet reporter, Abbi Tatton, once again for more on that -- Abbi.
TATTON: Wolf, in terms of U.S.-based port operators, there really aren't that many options.
So many of these operators are foreign owned. Of the U.S.-based options, SSA Marine is one who the biggest. We spoke to a shipping consultancy based in London, Drewry, who told us this is one of the biggest of the U.S. companies.
We spoke to them yesterday, though, and they said that they have had no discussions on this deal. Maher is another U.S.-based company here. We tried to reach them for comment, and haven't been able yet.
Then we have the big foreign-owned companies that do business here in the U.S. APM, Danish, is one of them. It has terminals in Baltimore, Miami, and L.A. Another is APL. We reached both of these for comment. And they both said something pretty similar: We never speculate on acquisitions. No comment, Wolf, so not -- no more information on this part of the story yet.
BLITZER: Thanks very much, Abbi, for that.
Coming up, where does the president's relationship with the Congress go from here? We are going to get the inside story from the White House on this day after the Dubai -- the Dubai port deal's demise.
And I will also speak with Senator George Allen. We will get his take on the president's port defeat, the Virginia Republican's own White House hopes. I will speak with him live. That's coming up from the gathering, the GOP gathering, in Memphis, during our 7:00 p.m. Eastern hour, right here in THE SITUATION ROOM.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: President Bush lost big in the battle over the Dubai ports deal. And it stands to reason that someone else would, in turn, win big.
Our senior political analyst, Bill Schneider, is joining us now with more on this -- Bill.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, Wolf, killing the Dubai Ports World deal was clearly the "Political Play of the Week," but who gets the prize?
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): Victory has 1,000 fathers, President Kennedy once said. Who fathered the victory that killed the Dubai ports deal?
House Majority Leader John Boehner sent an unmistakable signal to his colleagues on Tuesday, when he said, "I would like to see it go away." A crucial moment came when the House Appropriations Committee, chaired by Congressman Jerry Lewis, voted 62-2 to kill the deal.
But our paternity test indicates that the real father was a New York congressman who spoke out early and loudly.
REP. PETER KING (R-NY), HOMELAND SECURITY COMMITTEE CHAIRMAN: This has to nothing to do with being an Arab nation. It has to do with a country which has really unusual -- has had unusually close ties to terrorism.
Two questions...
SCHNEIDER: As chairman of the Homeland Security Committee, Peter King had standing to criticize. And, boy, did he.
KING: When I hear the administration say they're going to use the 45 days to educate the Congress and let us know exactly what happened, no, they should be educating themselves.
SCHNEIDER: When President Bush said he would veto an amendment to stop the deal, even if it were attached to a military appropriations bill, King dared him.
KING: I don't see how the president can do it, because, in effect, he would be putting the United Arab Emirates before the welfare of the American troops.
SCHNEIDER: So, on the very day the deal died, what did Congressman King do? He stood next to President Bush when he signed the bill renewing Patriot Act.
KING: It's over now, as far as I'm concerned.
SCHNEIDER: But not as far as we're concerned. We still have to award "The Political Play of the Week" to Congressman Peter King. (END VIDEOTAPE)
SCHNEIDER: Now, Congressman King gives credit to public opinion for being way out ahead on this issue.
And, from now on, when someone says, oh, Congress doesn't pay any at attention to the people when it decides what to do, here's a good response. How about the ports deal? -- Wolf.
BLITZER: He was a frequent visitor on our program...
SCHNEIDER: Yes, he was.
BLITZER: ... Peter King, lots of TV, did -- was not shy about going out and speaking out against this deal.
If Peter King gets "Political Play of the Week," who gets honorable mention?
SCHNEIDER: Well, like Kennedy said, you know, victory has 1,000 fathers. How about Representative Duncan Hunter, the chairman of the House Armed Services Committee, who was pushing forward -- forward with a bill requiring the secretary of defense to identify crucial infrastructure and mandating that it be American owned and managed?
And how about this? The father could be a mother. Representative Sue Myrick of North Carolina two weeks ago wrote a one- sentence letter to President Bush that says, "In regards to American ports to the United Arab Emirates, not just no, but hell no" -- Wolf.
BLITZER: All right, Bill, thank you very much, Bill Schneider with "The Political Play of the Week." He does that every Friday here in THE SITUATION ROOM.
Up next, sure, it's just 2006, but does that mean it's too soon to start thinking about who might lead the pack in the race for the White House in 2008? This weekend, it could offer an early look at some presidential hopefuls, at least on the Republican side.
And the ports deal may be dead in the water, but is the fallout? We are looking at how the political turmoil over the agreement could affect U.S. relations with the key Arab partners. That's ahead in our 7:00 p.m. Eastern hour.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Back now to our coverage of the 2008 presidential race, yes, 2008. We know it's early, and so do the candidates, but is it too early?
Let's turn to our senior analyst, Jeff Greenfield, for more -- Jeff.
JEFF GREENFIELD, CNN SENIOR ANALYST: Well, Wolf, of course, all America is agog at the prospect of this weekend's Southern Republican Leadership Conference and a chance to gauge the prospects of a clutch of potential presidential candidates. Some 200 reporters are expected to be on hand to witness this event, featuring a straw poll which could well tell us nothing of any significance whatsoever.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I, George Walker Bush...
CHIEF JUSTICE WILLIAM REHNQUIST, U.S. SUPREME COURT: Do solemnly swear.
BUSH: ... do solemnly swear.
(END VIDEO CLIP)
GREENFIELD (voice-over): Now, it is true that the potential presidents have been out there since about five minutes after President Bush was sworn in for a second term.
Their efforts have worked as a kind of permission slip to the press to start covering and polling and speculating. But, just for one second, cast a look back and see just how helpful such premature evaluation has been.
March 1990 -- among Democrats, the three front-runners are New York Governor Mario Cuomo, Reverend Jesse Jackson, and 1988 nominee, Michael Dukakis. None of them even ran in 1992. And a small state governor named Clinton, Gallup didn't even bother to ask about him.
(BEGIN VIDEO CLIP)
GOV. WILLIAM J. CLINTON (D), ARKANSAS: Thank you very much.
(END VIDEO CLIP)
GREENFIELD: March 1994 -- this time, Gallup's Republican front- runner, Senator Bob Dole, did wind up as the nominee.
(BEGIN VIDEO CLIP)
BOB DOLE (R), PRESIDENTIAL CANDIDATE: I say, follow me. Follow me.
(CHEERING AND APPLAUSE)
(END VIDEO CLIP)
GREENFIELD: The runners-up were Colin Powell, Ross Perot, and Dan Quayle. None of them even entered the race.
March 2000 -- both front-runners in this open race, Al Gore and George W. Bush, did get their party's nomination. But the insurgent who ran a remarkably strong race, Republican Senator John McCain, was polling at 2 percent back then. So, the polls got the winners right, but completely missed the nature of the Republican contest.
March 2002 -- the clear Democratic front-runner, former Vice President Al Gore, in second place, Senator Hillary Rodham Clinton -- the ultimate one-two finishers, John Kerry and John Edwards, were drawing 6 and 2 percent, respectively. The candidate who surged in 2003, Howard Dean, wasn't even on the polling list a year earlier.
(END VIDEOTAPE)
GREENFIELD: Now, I realize that suggesting a sense of restraint about all this, waiting to see who has a compelling message, who turns out to be a stiff on the stump, who resonates with voters once they really start to pay attention a year-and-a-half from now, is hopelessly futile.
Why? Because the politically obsessed are like a family that sets out on a vacation, and, as the cars pulls out of the driveway, the kids begin shouting, "Are we there yet?"
No, we're not, Wolf.
(LAUGHTER)
BLITZER: Jeff, thanks very much. Jeff is always giving us good perspective. He will be back here in THE SITUATION ROOM, 7:00 p.m. Eastern tonight.
Still to come, now that the Dubai port deal is dead, are America's relations with the Arab world at even greater risk? Jack Cafferty is going through your e-mail. He's coming up next.
(COMMERCIAL BREAK)
BLITZER: Jack Cafferty is back with "The Cafferty File" -- Jack.
CAFFERTY: Thanks, Wolf.
The collapse of the Dubai ports deal, according to President Bush, sends the wrong message to American allies in the Middle East. The question we asked is, how do you think the collapse of that deal will affect America's relations with the Arab world?
James in Nashville, Tennessee, writes: "If we were concerned about how the Arab world views us, we would not have invaded a sovereign Arab country, killing more than 100,000 innocent civilians and propelling them to the brink of a civil war that has the potential to engulf the entire region."
Ron in Canton, Georgia, writes: "So the UAE will help us defeat terrorism only if we turn over our Eastern Seaboard to them? That sounds like extortion to me."
Roger in San Francisco: "I don't think the collapse of the port deal is going to affect our relations with the Arab world at all. Rather, it will have an economic impact far beyond anyone's comprehension. Our fear and xenophobia are appalling."
Cathy writes: "When was the last time you had to give up a chunk of your property in order to keep a friend? That's what I hear the president saying today, that we have to let D.P. World have the ports or we may lose their friendship. In my book, with a 'friend' like that, we don't need to look for enemies."
Dennis in Nevada writes: "Wow. Heaven forbid, but it might cause the Arab world to chant 'Death to America,' and to burn U.S. flags, and to burn cloth dummies labeled 'America' and stuff. I hope it doesn't come to that."
And Bill writes: "Who cares?"
Coming up this weekend on "IN THE MONEY," we are going to talk about the alarming fact -- and it is alarming -- 5 percent of all American jobs are currently held by illegal immigrants. And the author of the best-selling book "Reaganomics" talks about how President Bush has betrayed the legacy of Ronald Reagan. He says Bush is a pretend conservative. "IN THE MONEY" airs Saturday at 1:00, Sunday at 3:00 Eastern.
We invite you to join us -- Wolf.
BLITZER: Is that Bruce Bartlett you're going to be talking to?
CAFFERTY: Yes.
BLITZER: He's a very, very smart guy. He's a very conservative economist who says that Bush basically has betrayed the really hard- core conservative financial cause.
CAFFERTY: Particularly with the size of the deficits they're running, the size of the government that has grown under his administration, and the amount of, you know, the -- the fact the federal government is now much more a part of our lives than it was before he took office.
Republicans traditionally stand for smaller government and smaller government spending. And , yet, the deficits under President Bush are huge. And he thinks that's a betrayal of the conservatives.
BLITZER: Jack Cafferty hosts "IN THE MONEY." It airs Saturdays and Sundays, Saturdays 3:00 p.m. Eastern, replayed -- excuse me -- Saturdays, 1:00 p.m. Eastern, Sundays, 3:00 p.m. Eastern. Jack has got a good show on the weekends. Check it out.
And, to our viewers, you're now in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you the day's top stories.
Happening now, it is 5:00 p.m. in Washington. Could the collapse of the ports deal cause collateral damage back in the Middle East? The White House worries about the impact on trade and on the war on terror. But should it be worrying about damage much closer to home?
They have had some rocky moments recently, but Republicans are rallying in Memphis, where it is 4:00 p.m. The party faithful are getting a look at potential presidential candidates. Can they pick a winner?
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