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The Situation Room
White House Worries of Impact of Ports Deal Collapse on Middle East; NASA Spacecraft Closes in on Mars
Aired March 10, 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: 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's 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've had some rocky moments recently, but Republicans are relying in Memphis, where it's 4:00 p.m. The party faithful are getting a look at potential presidential candidates. Can they pick a winner?
And right at this hour, more than 300 million miles away, a NASA spacecraft closes in on Mars. It may give us our best look yet at the red planet.
I'm Wolf Blitzer.
You're in the SITUATION ROOM.
We'll get to all of that in a moment.
But first, we're going to show you some live pictures from the Delta Airlines Terminal at New York's LaGuardia Airport. The entire terminal had been evacuated as TSA and Port Authority police searched for a man who left the security screening area. He had been pulled aside for a secondary screening after he set off a device that checks for explosives. This on his shoes, which he had taken off. He put his shoes back on and apparently simply started to run. As a result, in an abundance of caution, they decided to close down that terminal.
We are now being told that departing flights are being allowed to take off. The search for this man, though, is happening right now and we're going to continue to follow this development much more coming up on LaGuardia, a security scare that's unfolding right now.
We'll move on to other important news, though. What will the death of the Dubai ports deal mean for U.S. ties with the Arab world? President Bush says it's a serious source of concern. But should he also be concerned about an erosion of his political power right here in Washington?
Our congressional correspondent, Ed Henry, is standing by.
But let's start our coverage this hour with our White House correspondent, Dana Bash -- Dana.
DANA BASH, CNN CORRESPONDENT: Well, Wolf, a senior administration official said today the president has no regrets about issuing the veto threat many think exacerbated this whole confrontation with his own party. But the official did admit it was a difficult issue and that while the president is a seasoned politician, on this one, the horse got out of the barn.
(BEGIN VIDEO TAPE)
BASH (voice-over): It was his way of conceding defeat.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm sure that the decision by D.P. World was a difficult decision. My administration was satisfied that port security would not have been undermined by the agreement. Nevertheless, Congress was still very much opposed to it.
BASH: That unprompted statement before a Q&A session with newspaper executives from a president eager to put the ports debate and a GOP revolt behind him. But not before one last shot at the Republican rebels, making clear he thinks they slighted a critical Arab ally.
BUSH: I'm concerned about a broader message this issue could send to our friends and allies around the world, particularly in the Middle East.
BASH: A key question now -- what about his relationship with the GOP Congress? Was this a one time dustup or a sign of more trouble ahead?
JOHN BRABENDER, REPUBLICAN STRATEGIST: If they start saying hey, I -- this -- the president isn't helping me, his agenda isn't helping me, I have to run without the president, I think that creates a certain amount of problems for the Republicans.
BASH: And yet for all the drama and discord of the past three weeks, Bush aides concede this -- Iraq will define this president's legacy and is the biggest drag on his sagging popularity.
BUSH: They blow up shrines in order to cause this Iraqi democracy that is emerging to -- to go backward, to not emerge.
BASH: And so Mr. Bush began what officials say will be a renewed push around the three year anniversary of the war's beginning to once again try to lift public opinion. Consider this snapshot of the new effort -- a rare decision to release a photo of Mr. Bush running Friday's secret national security meeting on Iraq.
(END VIDEO TAPE)
BASH: And the White House has, of course, had many of these P.R. campaigns before. But officials say that this is going to be different, they hope, because Bush speeches will hone in on specific and well known issues and problems, like, for example, Monday's speech will be about IEDs, or roadside bombs.
But, Wolf, other efforts like this have -- did not move polls much in the past. A senior administration official says that Americans may still remain unsatisfied, but they still need a better understanding of what happens on the ground.
BLITZER: Dana, as you know, it's pretty unusual for the White House to release an official photo from the Situation Room over in the West Wing on a sensitive security subject like Iraq.
What do they say? Why did they decide to release that photo today?
BASH: Well, they like to see -- they want us to see the president in action on the next subject they're going to talk about. As I said, they want to turn the page away from this ports subject. Iraq is not necessarily a positive subject when it comes to the perception in this country, but they know it is one they have to deal with and showing the president conducting a meeting with his top commanders on this issue is something that they wanted an image -- they wanted that image out there today -- Wolf.
BLITZER: Dana at the White House.
Thanks very much.
Democrats have been watching with what must be at least a certain amount of glee as Republicans go against their own president.
Our congressional correspondent, Ed Henry, is joining us now live with more on this part of the story -- Ed, in terms of his agenda on Capitol Hill right now, how badly wounded is the president?
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Pretty badly wounded even before this, Wolf. And this is an even bigger shot.
As you know, when you think back just a few months, the president's signature plan coming out of the last -- his reelection, out of the 2004 election, he basically wanted Social Security reform. The Democrats hit him hard on that and the Republicans ended up abandoning it.
In recent months, we've seen Republicans up here asking very sharp questions about the NSA domestic surveillance program.
So I think on a wide range of issues, we've seen Republicans starting to push back. They're on the ballot in November. The president is not. But what has to be most worrisome for the White House, of course, is it's one thing for Republicans up here to give up on Social Security, on the domestic front. But for the first time we're really seeing on issues like this the Republicans up here divorcing themselves from the president on the war on terror, on issues.
You heard the argument on national security grounds about how UAE is such a critical partner in the war on terror. Republicans up here were not buying that at all. That's really the first time we've seen that -- Wolf.
BLITZER: It may be a stretch, but a friend of mine said to -- asked me this question last night.
If Tom DeLay, known as "The Hammer," had still been the House majority leader, would this have happened? Would this have unfolded? Because he ran a very strong shop, as you know. A new majority leader, John Boehner coming in, presumably with not the clout that Tom DeLay had.
Did the fact that Tom DeLay is now in the back bench, shall we say, did that have an effect on this battle?
HENRY: You know, I don't think so, because I think DeLay, also, in addition to being somebody who could keep the troops in line, also had sharp political antenna and he would have known, if he had been the majority leader -- it's a guessing game now -- but he probably would have known that, in fact, his troops would not be in line here.
And I think you raise a good point about John Boehner. There were questions coming out of the whole DeLay debacle, could John Boehner fill those shoes, heavy, you know, very big shoes, to keep the troops in line.
John Boehner, in addition to other Republicans, he was the one early this week who really threw the big punch, saying he was wishing this deal would just go away, saying that they were going to attach an amendment to a bill to kill this deal. He really got the ball rolling. The White House never recovered from Boehner's comments early in the week.
So I think John Boehner passed his first big political test -- Wolf.
BLITZER: Ed Henry joining us.
Thanks, Ed, very much.
Arab news media are following and reacting to the ports controversy, but not necessarily the way we might think.
Our Zain Verjee has been checking that out.
She's joining us now from the CNN Center -- Zain.
ZAIN VERJEE, CNN CORRESPONDENT: Wolf, the ports controversy has been making headlines, as you well know, in this country. But that hasn't been the case in the Arab news media. Many papers have just put the story in their business sections or they haven't even covered it at all.
But news of the deal's collapse is prompting some media to take note.
(BEGIN VIDEO TAPE)
VERJEE (voice-over): In Dubai, the ports controversy didn't stir up the storm it created in the United States. And the decision by government-owned Dubai Ports World to drop plans to take control of six U.S. ports played out as a smooth resolution to a minor snafu.
"D.P. World Diffuses Ports Row" is the headline in the English- language "Gulf News," based in Dubai. The article credits Dubai's leader, Sheikh Mohammed Bin Rashid Al Maktoum, with resolving the situation. But in an editorial, the paper takes a harsh stance against U.S. politicians, saying: "Much of the anti-Arab sentiment must be laid at the door of the White House despite the fact that the White House supported the deal," the paper says, "since the days of 9/11, it's encouraged the American public to believe all things Middle Eastern are to be feared."
The London-based Arab language paper "Al Quds Al Arabi" sounds a similar note in an editorial, saying: "The excuses that the U.S. Congress used to oppose this deal were not only pathetic, but very racist." And it adds: "This racism clearly shows that they cannot distinguish between an ally and a foe."
(END VIDEO TAPE)
VERJEE: It's that kind of reaction, Wolf, that raises fears about the impact it could have on Arab investment in the United States. Many analysts are saying today that, you know, it may mean Arab investors will think twice before putting their money into the U.S. in the short-term. But in the long-term, analysts are saying, look, the U.S. market is just too big to shun and there are way too many great business opportunities -- Wolf.
BLITZER: All right, Zain, thanks very much.
A good report.
Zain Verjee reporting.
And Dubai is an important trading partner of the United States, an important strategic partner.
What will the fallout be from the failure of this ports deal?
Coming up, I'll speak with a key diplomat from the United Arab Emirates here in the SITUATION ROOM. That's coming up.
What's coming up right now is Jack Cafferty once again with The Cafferty File -- Jack.
JACK CAFFERTY, CNN CORRESPONDENT: Thanks, Wolf.
Some people blamed opposition to the ports deal on anti-Arab bias and bigotry, not national security concerns. Well, guess what? A growing number of Americans have an unfavorable opinion of Islam and a majority say the religion encourages violence.
A new poll shows 46 percent of Americans have an unfavorable view of Islam. That's up from 39 percent in the months following 9/11. Thirty-three percent of those polled say mainstream Islam encourages violence. That is more than double the 14 percent who felt that way just four years ago.
The president of the Arab-American Institute says he's not surprised by the results. He says politicians and media commentators have demonized the Arab world since 2001.
Really?
How about the people who are responsible for most of the recent attacks on Western civilization? The Achille Laurel hijacking? The bombing of PanAm Flight 103? The massacre at the Munich Olympic Games? The first attack on the World Trade Center in 1993? The USS Cole bombing? The bombing of U.S. Marine barracks in Beirut? The suicide bombings in Israel? Of course, 9/11? And don't forget the rioting, death, injury and destruction of property that were triggered by a cartoon in a Danish newspaper.
All done by Muslims.
Here's the question.
Has your opinion of Islam changed since 9/11?
E-mail us at caffertyfile@cnn.com or go to cnn.com/caffertyfile -- Wolf.
BLITZER: Jack Cafferty, thanks very much.
I want to update our viewers on what's happening elsewhere in New York right now, specifically at LaGuardia Airport.
There has been a security scare of sorts there. It's effectively shut down the Delta Airlines Terminal. A spokeswoman for TSA is telling us that passengers now are being permitted to go back into the Delta terminal. They're re-screening everyone who had been evacuated from the area. Delta is in the process of trying to move all of these hundreds of people back inside, get them to their gates. And they say within the next two hours or so, they expect flights to resume taking off from that terminal over at LaGuardia.
We're told the background was that an individual had been selected for secondary screening. His shoes were screened. Apparently they came up with some sort of residue suggesting potentially, at least, there could have been some sort of explosives, although there are false positives in that specific screening. The individual, though, got his shoes back and apparently simply walked away. And that caused, in what TSA officials and Port Authority officials say, an abundance of caution, they decided they had better clear out the area and look for this individual.
So we're going to continue to watch this story and we'll get more for you as we get it here in the SITUATION ROOM.
Up ahead, a NASA spacecraft closing in on Mars right now. Controllers anxiously waiting to see if some tricky maneuvering worked and put it into orbit.
We're going to go to Miles O'Brien with the latest on a critical mission.
Also, Republicans gathering right now in Memphis with their eyes on 2008. We'll show you which White House hopefuls are there.
And it's called cage fighting -- a bloody mix of martial arts, boxing and street fighting. We're going to take you live to California, where the state's first ever legal bout takes place tonight.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: We're following a developing story in space. After seven months and 300 million miles, a NASA spacecraft is closing in on Mars right now with some very, very tricky maneuvering.
Our space correspondent, Miles O'Brien, monitoring all of it for us.
They're applauding there -- Miles.
What's going on?
MILES O'BRIEN, CNN SPACE CORRESPONDENT: Let's savor the moment, Wolf.
I believe the moment they have been waiting for has occurred just this moment.
UNIDENTIFIED MALE: All right!
UNIDENTIFIED MALE: Great job!
UNIDENTIFIED MALE: Great job!
UNIDENTIFIED MALE: All right!
O'BRIEN: There you see it. That's the control room at NASA's Jet Propulsion Laboratory, the California Institute of Technology.
These guys have been working on this for years and years and years. And this is the moment they've been waiting for. They just finally saw the spacecraft as it came around the back side of Mars, having completed, they believe, a successful burn, which puts it in the orbit of Mars hopefully for quite a few years to come.
It's going to be a few more minutes before they can safely say for certain it's right where they want it to be, but the fact that it's alive and well and phoned home at the moment that it was anticipated is all very good news, indeed.
So about five minutes from now -- there you can see the process of aero breaking that we've been talking about, Wolf, that for the next few months, now that this has successfully occurred, this burn maneuver, to bring the Mars reconnaissance orbiter into the grasp of Mars, slowly but surely it will get tighter and tighter an orbit along Mars. By November, there will be the kind of orbit they anticipate and want for its scientific mission.
Once again, the goal here is to learn about the weather patterns of Mars, and, most importantly, try to find any traces of water, either current or ancient. And that, they hope, will lead them down the path toward trying to figure out if Mars ever harbored life -- Wolf.
BLITZER: It would be very exciting, Miles, if they found some bottled water on Mars.
O'BRIEN: Yes, that would be something, wouldn't it?
BLITZER: That would be very, very cool indeed.
I guess the peanuts that those guys were eating an hour or so ago paid off, right?
O'BRIEN: Yes. Salted peanuts have always been good luck, I'm told. Of course, back in '99, you'll recall, they lost two spacecraft trying to go into Mars. They call it the Bermuda triangle. They ate the peanuts that day too, so -- but I'm sure they're quite happy they followed the superstition today.
BLITZER: Peanuts bring luck, apparently, to those guys at NASA.
Congratulations to them.
Miles, thanks very much for helping us better understand this story.
Republicans are doing some bonding at a conference in Tennessee, where there's a chance to turn away from the party's recent troubles and toward 2008. Potential presidential candidates are there hoping to feel some love.
Let's go to Memphis and our senior national correspondent, John Roberts, is there -- all right, John, tell our viewers what the excitement in Memphis is all about.
JOHN ROBERTS, SENIOR NATIONAL CORRESPONDENT: Well, it's not about a spacecraft going into orbit around Mars, it's about the fact that they've got six potential presidential candidates here, all in the same place at the same time. It's the first chance for many of these 1,800 delegates who are attending this conference to see any of them, let alone see them all at the same time.
And they know how much is at stake in November for the midterm elections. They know that just a handful of votes either way could swing control of the House and/or the Senate. And they're very cognizant of that.
Now, there is a little bit of concern that what's happening at the White House and the problems that it's been having and the president's low poll numbers could cause some problems for them in November. But you don't hear a lot of public criticism of the White House, except from one particular fellow, who we'll introduce you to in just a second.
His name is Dr. Mark Klein. He is a psychiatrist from California who is launching an exploratory campaign for president. We'll hear from him in just a second.
But first of all, we want to introduce you to a woman named Jessie Jane Duff. She is a former Marine and she's here at this convention. She is the chairperson of the Draft Condi Rice for President Movement.
(BEGIN VIDEO CLIP)
ROBERTS: You're saying none of the above?
JESSIE JANE DUFF: Absolutely. I believe that Condoleezza Rice is the only candidate that can defeat any Democrat. She, in fact, is probably the greatest threat to the Democrat Party. She will be able to sweep California and no other Republican candidate can take that claim.
ROBERTS: So, Dr. Klein, you've launched an exploratory committee here for president.
What do you think of the current administration?
DR. MARK KLEIN: I think this is actually the worst administration I've ever seen in my entire life.
ROBERTS: You know, that's not an opinion we hear a lot around here.
KLEIN: Well, you know something? It really would be a good idea for the party to give an alternative opinion.
ROBERTS: Isn't this kind of a dangerous place to be talking about things like that?
KLEIN: You know something? It is the dangerous opinions that will save this party.
(END VIDEO TAPE)
ROBERTS: Surprisingly enough, Dr. Mark Klein is not a marked man here at this conference, but everyone else wants to show solidarity for President Bush. In fact, they're distributing these little cards that say "vote for President Bush in tomorrow's straw poll" as opposed to one of the potential 2008 candidates -- Wolf.
BLITZER: A quick question.
Rudy Giuliani, he's a no show there.
Is there any explanation that he or his staff have given?
ROBERTS: He just -- he didn't want to attend this conference. Don't forget, in 1998 -- it's not that unusual -- in 1998 President Bush didn't attend this same conference and he came out winning the straw poll and obviously won the presidential election.
So it's not absolutely required to be in attendance here. And I think that Giuliani has got a little bit of a different game plan and he's not participating here.
BLITZER: All right, John, thanks very much.
John is going to be back with us in our 7:00 p.m. Eastern hour here in the SITUATION ROOM from Memphis.
I'll also speak with one of those Republicans who may be testing the waters for 2008, Virginia Senator George Allen, coming up, 7:00 p.m. Eastern in the SITUATION ROOM.
Coming up next, though, he's a major fan and he just legalized it in California.
So why is Governor Arnold Schwarzenegger skipping tonight's landmark cage fight, as it's called?
Plus, fallout from the ports deal implosion -- what does it mean for critical trade relations, strategic relations between the United States and the UAE? A top trade official from Dubai standing by to join us here live in the SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: California Governor Arnold Schwarzenegger is a fan of cage fighting, an often bloody mix of boxing, martial arts and street fighting. In fact, he just legalized it in his state.
CNN's Chris Lawrence is joining us now live from San Jose with this story -- Chris.
CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, these cage fights are illegal in most states, but as you said, Governor Schwarzenegger signed a bill that regulates them here in California.
Tonight's the first bout sanctioned by the state and it's coming at a time when the Republican governor is under a lot of scrutiny, even by members of his own party.
(BEGIN VIDEO TAPE)
LAWRENCE (voice-over): Senator John McCain calls it "barbaric." New York Governor George Pataki, "Neanderthal." Thousands, though, are fans. California Governor Arnold Schwarzenegger was supposed to attend an event like this last week in Ohio, but word got out, he got criticized and pulled out at the last minute.
ALLAN HOFFENBLUM, REPUBLICAN STRATEGIST: What he has to be careful of, that he doesn't get what is called -- what we call the Jesse Ventura syndrome.
LAWRENCE: Republican Allan Hoffenblum says voters won't reelect a California version of the wrestler turned politician.
HOFFENBLUM: He admits, by the way, that he's been too much of a show boater, that he's out there in too many shopping malls acting more like the Terminator rather than the governor.
LAWRENCE: But some take Schwarzenegger's schedule change as a sign that he buckled under political pressure.
ARNOLD STEINBERG, POLITICAL ANALYST: What's extraordinary about this governor is that virtually all his wounds are self-inflicted.
LAWRENCE: Republican political strategist Arnold Steinberg says Schwarzenegger continues to run his own independent course.
STEINBERG: I think there's a certain amount of apprehension among certainly the hard core Republicans, because there is a volatility and unpredictability to his decision-making where you never know where he's going to go next.
LAWRENCE: Some say he's going back to the moderates who elected him, deciding not to attend that cage match and telling voters his priorities are repairing California's levees and building new schools and highways.
HOFFENBLUM: So now we see him out there doing, you know, advocating issues that are not fiercely partisan, they're not fiercely ideological.
(END VIDEO TAPE)
LAWRENCE: And that is a clear strategy for a reelection campaign in a state like California, where registered Democrats outnumber Republicans by more than a million voters -- Wolf.
BLITZER: Chris, thanks very much.
Chris Lawrence reporting.
Coming up, will the collapse of the ports deal impact trade relations between the United States and the United Arab Emirates? We're going to have details of the billions of dollars and thousands of jobs at stake right now.
And coming up in our 7:00 p.m. Eastern hour, the high profile Muslim cleric suspended from his job with New York City after some controversial comments caught on tape. We'll play them for you. Mary Snow is watching the story for us.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: Dubai has been a key ally and trading partner of the United States. How much damage as a result has been done to this relationship by the death of the ports deal. CNN's Brian Todd has been following this story and he's joining us now with more. Brian?
BRIAN TODD, CNN CORRESPONDENT: Wolf, tonight there are fresh concerns over the future of U.S. trade with Dubai and the American military presence there. Just one day after the ports deal sank, the U.S. and the United Arab Emirates postponed high level free trade talks and experts warn the chilling effect could spread to wealthy Arab investors all over the Middle East.
(BEGIN VIDEOTAPE)
TODD (voice-over): In these CNN exclusive pictures, rows of GM and Ford cars and trucks. Not in Detroit, but in Dubai. Warehouses, cranes, containers from every corner of the world. A bus strapped to a container on a ship. Images of a powerhouse of transshipment, tourism, trade.
The question now, will the U.S. continue to be a major partner with the United Arab Emirates. At stake last year, $10 billion in trade. Money that could balloon if both nations sign off on a free trade agreement. Experts tell CNN the postponement of high level trade talks after the port deal collapse is not coincidence. But U.S. negotiators don't make that link.
ROB PORTMAN, U.S. TRADE REPRESENTATIVE: I think the issue really was more a question of security rather than investment or trade.
TODD: Here is another question of security in this relationship. CNN has learned Emirates-based Inchcape Shipping Services landed a $50 million contract last year to provide fuel and food for U.S. Navy ships and sailors throughout the Middle East. As a result, this Arab company gets advance notice of U.S. vessels' schedules. We asked CNN security analyst Alex Fraser, once a commander of a navy ship in the region why it is acceptable for Arab companies to access American warships but not run U.S. commercial terminals.
CAPT. ALEC FRASER, U.S. NAVY (RET): Aside from the fact that the supplies are all being inspected which is a major difference over supplies coming into the United States, it is almost impossible to supply bananas, oranges, meats, fuel on a global basis from one central location. It has to be done locally.
(END VIDEOTAPE) TODD: A Navy official tells CNN there has never been a security problem with Inchcape Shipping but says virtually all security for American ships is handled by the navy. An official with ISS tells us the company has undergone rigorous external security checks and all of its ports staff have had their backgrounds completely vetted. Wolf?
BLITZER: Brian, thanks very much.
The Bush administration worries that the Dubai ports deal collapse will reverberate throughout the Arab world, harming trade and the war on terror. Joining us now is Reem al-Hashimy, the United Arab Emirates commercial attache in Washington.
Thanks very much for joining us.
REEM AL-HASHIMY, UAE COMMERCIAL ATTACHE TO THE US: Thank you. It's my pleasure.
BLITZER: A quick question on the suspension of the free trade talks between the United States and the United Arab Emirates. Brian just reported on that. You're trying to negotiate a free trade area agreement. How significant is this postponement?
AL-HASHIMY: We have been negotiating and discussing for about a year now. And the teams are still going to talk to one another. There are still video conferences between them and conference calls between them. What was postponed was the U.S. negotiators actually flying to Abu Dhabi, and that's just a minimal postponement and we don't see it as in any way delaying the process.
BLITZER: Is it related -- the decision to delay the departure related to the collapse of the Dubai Ports deal?
AL-HASHIMY: Absolutely not. They're entirely separate issues.
BLITZER: Let's talk about this Dubai Ports deal. Under the wording that we have, "They will transfer fully," according to the statement from Dubai Ports World, "the operations of these six major U.S. ports to a U.S. entity." Explain what that means. Does that mean sell off or just transfer, find a U.S. subsidiary? Because there is a little confusion, as you know, precisely what that means.
AL-HASHIMY: I'm afraid you're going to have to ask DP World to explain that. I wouldn't have the details of it. But what I do know is that, to salvage the relationship between the UAE and the U.S., a request was made to DPW to pull out from this deal because things were escalating out of control.
BLITZER: The request was made by whom?
AL-HASHIMY: By the UAE government.
BLITZER: By the ruler of Dubai?
AL-HASHIMY: The UAE federal government requested DPW to pull out. BLITZER: But let me just press you on this point, because it is still a sore spot for at least some members of Congress. You say I should ask DP World. They're leaving it ambiguous. We're not getting the complete answer from them whether they're going transfer fully to a U.S. entity -- whatever that means -- or whether they're going to sell off and move on from the United States.
The UAE -- Dubai, at least -- owns Dubai Ports World, so presumably you know the answer.
AL-HASHIMY: Actually, I really don't.
BLITZER: You don't know the answer.
AL-HASHIMY: No. In fact, I found out about this myself yesterday afternoon. So DP World will let the right people know when the right time arises.
BLITZER: But at this point, they want to leave it a little bit ambiguous.
AL-HASHIMY: I can't speak for them, Wolf. I'm sorry.
BLITZER: Let's talk about what the president said today, President Bush. Listen precisely to what he told newspaper editors here in Washington.
(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.
(END VIDEO CLIP)
BLITZER: I just spent several days in Dubai, as you know. How will this collapse of this deal affect the overall U.S.-UAE relationship?
AL-HASHIMY: The U.S.-UAE relation has always been strong. It has been strong for over three decades. Not only in commercial relationships, but also military and intelligence. As you know, we've tried to explain to the American public the strength of that relationship, whether it was in Desert Storm or it was in Kosovo, and after 9/11, with American troops in Afghanistan, shoulder to shoulder.
I believe that the relationship will continue to be strong, because relationships that matter don't crumble at the first bumpy ride.
BLITZER: As you know, the U.S. Navy spends more time in the ports in the United Arab Emirates than it does in any port around the world outside of the United States. Will that access, as far as you know, still be the same as it was before the collapse of this deal?
AL-HASHIMY: Absolutely, yes. BLITZER: So that military strategic relationship will continue.
AL-HASHIMY: Yes.
BLITZER: What about this commercial relationship? I believe -- and correct me if I'm wrong -- the UAE is about to purchase about 40 or 42 Boeing 777s at a value of billions -- $10 billion. A lot of U.S. jobs are at stake at those Boeing aircraft. Is it your understanding that export of Boeing aircraft to the United Arab Emirates will go forward?
AL-HASHIMY: My understanding is that those deals are separate from the DPW and other potential deals. Each one will be regarded by its own faults and by its own merits.
The UAE is the third largest trading partner to the U.S. In fact, $8.4 billion worth of U.S. exports reached the UAE market last year. And we're one of the few countries, I think, in the world that has a trade surplus with the United States of about $7 billion on the U.S. side. So the imports from the UAE are pretty low -- about $1.4 billion or so.
BLITZER: But the exports to the United Arab Emirates from the United States are pretty significant.
AL-HASHIMY: It's 8.4 -- we are the third largest partner -- trading partner -- for the United States.
BLITZER: Ibrahim Hooper, with the Council on American Islamic relations, was quoted in the "Baltimore Sun" as saying, "If it's a victory" -- referring to the collapse of this deal -- "If it's a victory, it's a victory for bigotry and Islamophobia."
Do you sense there was prejudice, racism -- was it a victory for bigotry, the collapse of this deal?
AL-HASHIMY: We respect the democratic process in this country. We respect the fact that questions needed to be raised. And so we're sort of not commenting on the bigotry element to it. We understand how Congress has to work. And I would just leave it at that.
BLITZER: We'll leave it at that right now. But we'll look forward to having you back.
AL-HASHIMY: Thank you very much.
BLITZER: Reem al-Hashimy is the commercial attache at the UAE Embassy here in Washington.
AL-HASHIMY: Thank you, Wolf.
BLITZER: Thanks very much for coming in.
AL-HASHIMY: Thank you very much.
Lou Dobbs getting ready for his program that begins right at the top of the hour. Lou, tell our viewers what you're working on.
LOU DOBBS, CNN HOST: Well, Reem al-Hashimy understands something that perhaps the Bush White House doesn't, that this is a democracy and not an imperial presidency. We'll be exploring that tonight. The Dubai ports deal is dead, the lies aren't. The battle to re gain key U.S. strategic infrastructure asset has only begun. We'll have that special report.
Tonight I'll be talking with David Gergen. And to our panel of Ed Rollins, Michael Goodwin and Jeffrey Toobin about whether the imperial presidency is ended and whether George W. Bush is now a lame duck president.
And in Chicago, as many as 100,000 people marching to protest the Sensenbrenner Bill on border security and immigration. We'll have that live report and analysis and a great deal more. We hope you'll be with us.
BLITZER: All right, Lou, thanks very much. Lou Dobbs coming up shortly. Here on CNN.
There is a developing story we're following out of the federal district courthouse here in Washington on the CIA leak investigation. And the vice president's former chief of staff and his request for some highly classified White House documents. We're going to tell you what just has been decided. That's coming up.
Plus, this man may be a Republican presidential prospect. Right now, though, he's a United States senator. I'll speak live with Virginia's Senator George Allen, former governor in the 7:00 p.m. hour right here in THE SITUATION ROOM. Stay with us.
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BLITZER: This just coming into to CNN. A significant new development in the CIA leak case involving Lewis "Scooter" Libby, the Vice President Dick Cheney's former chief of staff who was indicted last October. A federal judge here in Washington has just ordered the government to turn over to Libby's defense team portions of the president's so-called daily brief. The most sensitive intelligence document produced by the intelligence community of the United States government.
The judge has ordered the White House and the CIA to hand over relevant documents from this presidential daily brief that involve Valerie Plame, the CIA officer at the center of the leak investigation. Potentially an extraordinary ruling considering the sensitivity of the information contained in the brief. Let's bring in our Dana Bash, our White House correspondent for some perspective. This potentially is important because the defense team wants these documents to show what?
BASH: Well, our understanding is essentially they want to show that Scooter Libby was a very busy person. These are -- this presidential daily brief, it shows what was going on at the time. This was a time of -- sort of during the Iraq War. This was a very busy period at this White House. And Scooter Libby's big problem here when it comes to this case is that the indictment says that he lied in his testimony.
His -- what he wants to essentially say is that there was a reason maybe he didn't remember. He was a very busy person. But in this particular order, Wolf, there is an opportunity, this is March 24th, the CIA and the White House do have an opportunity to appeal this ruling. Unclear if that's going to get anywhere but they have an opportunity to do that.
This is potential to come in the public view. But Wolf, my understanding is that in this courtroom there say classified area, a place where the lawyers, the judge and others involved in this who have classified -- have clearance, I should say, they can go in a place where this won't necessarily become public. But his very, very ironic, Wolf, because Scooter Libby worked for years and years at the side of Vice President Dick Cheney. And he makes it very clear, he has made it his mission to protect that they call executive privilege to stop this very thing from happening, to stop the most sensitive information that the president hears from becoming public. And now what you have Scooter Libby pressing for that very thing to get this information in the public to save himself in this defense trial.
BLITZER: The judge basically has ruled that about nine weeks of the presidential daily briefs would be made available to Libby's defense team. They had sought a whole year, I think. But nine weeks of relevant material according to the judge will be made available.
It is now up to the government to decide whether they will do that. If they don't, then they have to drop the charges presumably. In the past, defense lawyers have used what is some call graymail to demand all sorts of sensitive information that the government doesn't want to make it public, then they simply have to walk away from the case. That's been one of the strategies that has been described of Lewis Libby's defense team. What if anything are you hearing on that front, Dana?
BASH: That certainly could be one of the strategies here. There is no question they want this -- this issue dropped. The judge has made clear in this ruling he is going to try to make that not happen. That he really believes that this is important information for the defense and for the prosecution to see. More specifically the defense.
But it is going to be interesting to see how these motions go forward. March 24th and then there is an additional motion that is possible April 7th. We'll see how that works out if that strategy -- if that is their strategy and it works out.
Legal victory for Scooter Libby's defense team, at least on this day. Dana, thank you very much.
Let's check in with Zain once again at the CNN Center in Atlanta for a closer look of other stories making news around the world.
Zain? VERJEE: Wolf, peacekeeping duties in Sudan's western Darfur region will not be transferred to the United Nations. At least for now. The African Union is extending its mission for six months before handing control over to the U.N. The Sudanese government has said U.N. forces are not welcome and could destabilize the region. Experts say the African Union just doesn't have the mandate, the manpower, or the money to be effective.
There has been a war in Darfur for three years now. Rebels in the region are fighting the Arab government in Khartoum for more money and more power. Old-fashioned reasons. Rights groups say that as many as 300,000 people have died from war, hunger and disease. The U.S. has called the situation there genocide, more than 2 million people are now refugees.
In Paris, shades of 1968, hundreds of students clashing with police at universities in the capital including the Sorbonne around France today. They're upset over a measure that would make it easier for companies to fire younger workers. It could take effect next month. Supporters say it might actually help younger workers get hired because they could be let go more easily. But critics are saying, you know it just undermines job security.
And for your panda update, Wolf, 16 baby pandas, look at this, really living it up and enjoying themselves, playing on slides and swings in the snow at a specially built playground in southwestern China. And it was set up by China's Research Center of Panda Protection for cubs that have been weaned from their mothers because the baby pandas are still too young to eat bamboo leaves. They are treated, Wolf, with fortified milk.
BLITZER: How adorable are they, Zain?
VERJEE: Very cute.
BLITZER: Very cute indeed. Thanks very much. Zain Verjee reporting.
And coming up in our 7:00 p.m. Eastern hour, here in THE SITUATION ROOM, he's a high profile Muslim cleric, working for New York City. But suspected after controversial comments were caught on tape. We're going to tell you what exactly he said.
And up next, one year since the courthouse shooting rampage that that terrorized Atlanta. How has security changed since then? We'll go live to the courthouse. Kyra Phillips standing by.
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BLITZER: Tomorrow marks one year since a shooting rampage in an Atlanta courthouse began what would be a 26 hour period of terror for the city. Witnesses say rape suspect Brian Nichols overpowered a guard, stole her gun and escaped killing three people in the process and later a fourth. Today hundreds of people attended a memorial for the victims including a judge, a court reporter, and a sheriff's deputy. Kyra Phillips is joining us now live from the scene with a little bit more. It has been an awful -- all of us remember it, Kyra, and you remember it vividly that period. But update our viewers what has happened.
KYRA PHILLIPS, CNN ANCHOR: Wolf, I'll never forget it. It happened while on my shift. We got word that something was happening down here at the Fulton County courthouse. Next thing you knew, we were in breaking news coverage for the next 26 hours until Brian Nichols finally turned himself in. But one of the most pivotal moments happened here through this stair well. That's where Brian Nichols came running out of. Came running out of those doors and Sergeant Hoyt Teasley was the only sheriff's deputy that was chasing after him.
He ran into the street right here across from the courthouse and that's when he turned around with a gun that he had taken from deputy hall inside, turned back with the gun and that's when he fired the shot and hit Sergeant Teasley.
Sergeant Teasley was right over here in this area, next to the courthouse. That's when he dropped. And when he lost his life. It was one shot to the abdomen, Wolf, and now as we have been investigating throughout this documentary, we're finding out through all these various changes that have been made with regard to security, if Teasley would have had his vest on, his life probably could have been saved.
But he was coming into work, talking on the radio, hearing what was going on, and, boom, he was in the courthouse chasing this suspect. So that's just one change that has been made since all this went down a year ago to make it safer down here at the courthouse.
BLITZER: What a story. Kyra, thanks very much. And this important note, to our viewers, much more on this story coming up this weekend in a special two hour CNN PRESENTS. Kyra will be anchoring "26 Hours of Terror" this Saturday, Sunday night, 7:00 p.m. Eastern. Both nights only here on CNN. Must view -- watch TV here on CNN.
Up next, was the Dubai ports deal torpedoed by bias and bigotry? A new poll shows more Americans holding an unfavorable view of Islam. Has your view changed since 9/11? Jack Cafferty has your email and he'll be here in THE SITUATION ROOM.
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BLITZER: Let's go right to Jack in New York. Jack?
CAFFERTY: Thank you, Wolf. A new poll shows 46 percent of Americans have an unfavorable view of Islam. That's up from 39 percent in the months following the 9/11 attacks.
Also, one third of those polled say that mainstream Islam encourages violence. More than double the number of just four years ago, so our question is, has your opinion of Islam changed since 9/11?
Rob writes from Thunder Bay, Ontario. "No. I've always believed the vast majority of Islamic people are peaceful. 9/11 introduced us to a few of the rotten apples of the extremist Islamic type and now we live in fear that maybe our Islamic neighbor and friend that comes over for weekly poker night might some day strap some C-4 on and blow himself up in a shopping mall full of innocent shoppers."
Marty writes, "My opinion of Islam has not changed since 9/11. It couldn't get any lower than it was. Islam is a less a religion than an oppressive political system in religious disguise."
Brad writes from Tampa, Florida. "No. My opinion has not changed. I think Islam is a religion with two faces, just like Christianity. Both preach love and compassion until being brutal and vengeful suits them better."
Jeff in Raleigh, North Carolina. "The biggest event changing my opinion of the Islamic world has been the cartoon episode. Fatwas of death for novelists and cartoonists, paradise for suicide bombers! Muslims act like kindergarteners in a high school world."
And Thomas writes, "Islam is what it is. My change in perspective is how some people who claim to be followers of Islam have used their positions of power to subvert Islam and wreak havoc in this world. They are the monsters. Not Islam."
Wolf?
BLITZER: Jack, see you in an hour here in THE SITUATION ROOM. Thanks very much.
And we're here weekday afternoons 4:00 to 6:00 p.m. Eastern. We'll be back at 7:00 p.m. Eastern in one hour. Until then, thanks very much for joining us. LOU DOBBS TONIGHT starts right now.
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