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The Situation Room
Four Christian Hostages Freed In Iraq; Immigration A Hot Issue In Congress; Family Members Being Notified In The Chile Bus Disaster; Prosecutors Rest Case In Zacarias Moussaoui Trial; Damage From Dubai Ports Deal?; Videotaped In New York; Patients Dumped On Skid Row; Close To Constant Connectivity?
Aired March 23, 2006 - 16:59 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 in THE SITUATION ROOM, where new pictures and information from around the world 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, it's 1:00 a.m. in Baghdad. As violence rages, the rescue of hostages brings a ray of hope. But is there a light at the end of the tunnel for U.S. troops? Defense Secretary Rumsfeld is asked when they may leave. He's also asked when he may leave.
In New York, it's 5:00 p.m., but the cameras are rolling around the clock and police are watching. Will they trap terrorists or will they just trap you?
And it's 2:00 p.m. in Los Angeles, where cameras are also rolling catches poor hospital patients as they're dumped, yes, dumped, on skid row.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
There were bloody bombings and dramatic rescue efforts today in Baghdad. But as the war grinds on in Iraq, will U.S. troops remain there until the end or beyond? How long will Defense Secretary Donald Rumsfeld remain in his post?
Let's get some answers. We'll turn to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Wolf, Defense Secretary Rumsfeld today brushed aside any calls for his resignation, saying that President Bush has told him not to get involved in politics, and he said that's politics.
Meanwhile, in Iraq the violence rages on.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): For the third consecutive day insurgent forces attacked a major police and jail facility in Iraq. This time, a suicide car bomber hit the Interior Ministry's major crime unit in central Baghdad. It's part of what the U.S. military says has been a growing trend since the bombing of a Shiite shrine a month ago, an effort to drive a wedge between Iraq's ethnic groups.
MAJ. GEN. RICK LYNCH, MULTINATIONAL FORCE-IRAQ: And there is, indeed, a spike in what ethno-sectarian incidents. During this reporting period, 12 to 19 March, we found across Iraq about 100 events that we would label as an ethno-sectarian incident.
MCINTYRE: At the Pentagon, Defense Secretary Donald Rumsfeld admitted the failure of Iraq to form a new unity government was helping to fuel the violence.
DONALD RUMSFELD, SECRETARY OF DEFENSE: To the extent that isn't happening, obviously the level of violence is continuing and people are being killed. And that's unfortunate. And they need to get about the task.
MCINTYRE: And while President Bush has acknowledged that U.S. troops will be in Iraq past the end of his term in 2008, Rumsfeld steadfastly refuses to make any predictions about troop levels or even to acknowledge the Pentagon's plans for possible troop cuts later this year.
(END VIDEOTAPE)
MCINTYRE: Rumsfeld did concede that U.S. troops might be in Iraq past 2008 training Iraqis, but as for making any predictions, he recalled that some in the Pentagon back in 1995 predicted U.S. troops would be out of Bosnia in less than a year and troops were still there 10 years later -- Wolf.
BLITZER: Jamie, I want to play for our viewers incase they didn't see it live here on CNN earlier an exchange you had today with the defense secretary. Listen to this.
(BEGIN VIDEO CLIP)
MCINTYRE: Mr. Secretary, I'm just curious, do you feel at all embattled at this point in your tenure given the fact that...
RUMSFELD: No.
MCINTYRE: Aside from the retired two two-star general calling you "incompetent" and asking you to step down in an op-ed over the weekend, you also had a call from Maureen Dowd, in which she quoted an unnamed administration official saying that you don't hold the same sway in meetings and that you're treated as "an eccentric old uncle who's ignored."
RUMSFELD: You like to repeat all that stuff don't you -- on camera? Did you get it? Let's make sure you got it. He love that is stuff. It's a sure way to get on camera.
He'll be on the evening news.
MCINTYRE: I know you like to have the facts in the premise of the question.
RUMSFELD: Yes, I do. And you did it very well. No.
UNIDENTIFIED MALE: You can do one-arm pushups and put all this to rest.
RUMSFELD: The answer is no.
MCINTYRE: Do you hold the same sway in meetings?
RUMSFELD: Oh, come on. I'm not going to get into that -- Pam.
QUESTION: Sir, in your opening statement you said...
RUMSFELD: If you believe everything you read from Maureen Dowd, you'd better get a life.
(END VIDEO CLIP)
BLITZER: What about that exchange, Jamie? You were there. What does it say about the testiness, what's going on now in these briefings between the defense secretary and the Pentagon press corps?
MCINTYRE: Well, you know, you saw Rumsfeld smiling there. He's an old hand at these things. He knows how the dynamics work.
And you saw that he very cleverly turned it around and really made it about me asking the question and not so much the criticism which came from, at least in one case, from a retired military officer. But Rumsfeld has made it clear all along that he has no intention of stepping aside and that he serves at the pleasure of President Bush. And President Bush just yesterday gave him another vote of confidence.
BLITZER: Jamie, thanks very much.
Jamie McIntyre at the Pentagon.
Almost four months after they were taken hostage in Baghdad, three Christian peacemakers were freed in a lightning raid today by U.S. and British forces.
Our Senior International Correspondent Nic Robertson is in Baghdad -- Nic.
NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Wolf, the men had been kidnapped in western Baghdad in November late last year, but it was the information from a detainee picked up only hours before the release that led to their freedom.
(BEGIN VIDEOTAPE)
ROBERTSON (voice- over): Originally clean-shaven, over the months in captivity, their hair had grown longer, their beards bushier.
At the moment of their freedom, in the early hours of Thursday morning, their captors, who took these videos, were not around when the British and American special forces came to rescue them.
MAJOR GENERAL RICK LYNCH, U.S. ARMY: We conducted an assault on the house. And, inside the house, we found the three hostages in good condition. There were no kidnappers there at the time.
ROBERTSON: Seventy-four-year-old British physicist and peace activist Norman Kember, 41-year-old James Loney, the coordinator of the Christian Peacemaker Team, and 32-year-old Canadian engineer Harmeet Sooden had been held for 118 days.
Their kidnappers demanded the U.S. release all Iraqi prisoners, but it was a detainee picked up only hours before the raid that led to their freedom.
LYNCH: The key point is, it was intelligence-led, and it was information provided by a detainee, that, from the time we found the intelligence to the time we released the hostages was eight hours, or -- correction -- three hours.
ROBERTSON: On a day when suicide car bombers killed more than 30 people, wounded more than 60 others in Baghdad, the operation to free the Christian Peacemaker Team was welcome news.
UNIDENTIFIED MALE: It was several weeks in the planning. And, as I said, the British troops led it up, played a -- a key role in it, although, of course, it involved troops of other nations as well. So, I'm delighted.
ROBERTSON (on camera): A British Embassy spokesman said the three men were relaxing and enjoying their newfound freedom inside of the security of the embassy compound.
Norman Kember told a British official, "It is great to be free. I'm looking forward to getting back to the U.K."
(voice-over): When the men were kidnapped in western Baghdad last year, there were four of them -- the fourth, a 54-year-old American Quaker, Tom Fox.
UNIDENTIFIED MALE: We remember with tears Tom Fox, whose body was found in Baghdad on March 9 of this year, after three months of captivity with his fellow Peacemakers. We had longed for the day when all four mean would be released together. Our gladness today is bittersweet.
ROBERTSON: For the three survivors, the worst days of their lives now over.
(END VIDEOTAPE)
ROBERTSON: Now, according to a U.S. military spokesman, this operation is still ongoing. They're still gleaning information from the house where the three men were held -- Wolf.
BLITZER: Nic, thank you very much.
Nic is in Baghdad.
Congress, here in Washington, is on break. But a battle is brewing over illegal immigration.
The House has already voted to make it a felony. The Senate is looking at proposals to let some migrants stay on legally, but pressure is certainly building for a crackdown. President Bush today urged lawmakers to keep the debate civil and to respect people of all backgrounds.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Ours is a nation of law and ours is a nation of immigrants. And we believe that we can have rational, important immigration policy that's based upon law and reflects our deep desire to be a compassionate and decent nation.
(END VIDEO CLIP)
BLITZER: Right now immigration is a very hot issue, but is it too hot to handle? Will some get burned?
Let's bring in our Senior Political Analyst Bill Schneider -- Bill.
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Wolf, on immigration reform, Republicans are all over the place. So where are the Democrats?
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): The Democrats' approach to immigration reform can be summarized in one word: comprehensive.
SEN. HARRY REID (D-NV), MINORITY LEADER: America needs comprehensive immigration reform.
SCHNEIDER: What does that mean? This Democratic leader says three things.
REID: Immigration is not one problem. It's not a guest worker program only. It's not enforcement only. It's not only dealing with 11 million people here who are undocumented. It's all of them.
SCHNEIDER: Enforcement? In December, House Republicans passed a bill that adds guards and fencing along the border and makes it a crime to employ or assist illegal aliens. A similar bill may come before the Senate.
A leading Democrat's response?
SEN. HILLARY RODHAM CLINTON (D), NEW YORK: This bill would literally criminalize the good Samaritan and probably even Jesus himself.
SCHNEIDER: President Bush has called for a guest worker program. But many Republicans refuse to endorse it, while Democrats criticize it because it does not include...
REID: A program of legalization for these 11 million people who we have to take care of it.
SCHNEIDER: Meaning illegal aliens already in the U.S. A bipartisan bill does hold out that prospect.
SEN. JOHN MCCAIN (R), ARIZONA: It gives people who have come here, whether they came yesterday or 50 or 60 years ago, a chance to earn citizenship in the greatest nation in the world.
SCHNEIDER: That's where President Bush draws the line...
BUSH: We shouldn't have amnesty.
SCHNEIDER: ... even though critics say President Bush's guest worker program is a form of temporary amnesty. Democrats have tried to seize the advantage on immigration reform by focusing on the security implications.
SEN. MARIA CANTWELL (D), WASHINGTON: Strengthening our borders is critical to the component of ensuring our nation's homeland security.
SCHNEIDER: For example...
SEN. DIANNE FEINSTEIN (D), CALIFORNIA: I was surprised to find out there was no law on the federal books to make it a federal crime to build an illegal tunnel under the border.
(END VIDEOTAPE)
SCHNEIDER: That's an urgent problem. The question is, will holding out for a comprehensive solution make it easier or harder to solve -- Wolf.
BLITZER: Bill Schneider reporting.
Thanks, Bill, very much.
And to our viewers, remember, you're in THE SITUATION ROOM, where political news is arriving all the time.
CNN, America's campaign headquarters.
Let's go to New York right now for "The Cafferty File." That means Jack Cafferty is standing by -- Jack.
JACK CAFFERTY, CNN ANCHOR: That would be me. Thanks, Wolf.
The polls suggest that the president is stuck in a rut of growing public disapproval. And with the midterm elections on the horizon, even Republicans, some of them, are beginning to question their support of this man.
Some political doctors have suggested the prescription for the president's problems is to bring in some new blood. Today's "New York Times" reports the names being suggested to the president include these: Secretary of Health and Human Services Secretary Michael Leavitt -- that's the canned tuna and powdered milk guy -- former chairman of the Republican National Committee, Marc Racicot; former Commerce secretary Donald Evans and former chairman of the Republican Party, Ed Gillespie.
So far, there is no indication the president plans to make any changes. But if things don't start turning around for him soon, don't be surprised if he does.
Here's the question: If President Bush brings someone new into the White House, who should it be? E-mail us at CaffertyFile@CNN or go to CNN.com/caffertyfile.
BLITZER: I'll be anxious to hear who our viewers like. Thanks very much, Jack, for that.
CAFFERTY: All right, Wolf.
BLITZER: Up ahead, friend or foe? Now that the Dubai port deal is a done deal, might the controversy chill the warm relations between the United States and Dubai? We're going to go in-depth on that.
Big brother also may soon be watching you in an effort to protect you. We're going to find out where.
And always low prices. Wal-Mart has long claimed to be the king of low cost. So what's it doing selling pricey electronics and, yes, $500 bottles of wine?
Stay with us.
(COMMERCIAL BREAK)
BLITZER: It's every tourist's nightmare. Imagine setting sail for a fun-filled cruise only to see it turn into a truly horrible ordeal. There's rough sailing ahead for the passengers on two separate cruise lines.
In one mishap today, a fire broke out on a Carnival cruise ship called the Star Princess. The blaze charred and blackened about 100 cabins. Officials say one person died of a heart attack. The ship was en route from Grand Cayman Island to Montego Bay in Jamaica.
Meanwhile, right now some family members are being notified that their loved ones are dead after a bus crash in Chile. The two -- they, too, were passengers from a popular cruise ship.
Let's get the latest now. CNN's John Zarrella following the story from Miami -- John.
JOHN ZARRELLA, CNN CORRESPONDENT: That's right, Wolf, 12 people dead, two injured. All of those Americans.
They were onboard the Celebrity cruise ship Millennium which was sailing out of Santiago, Chile, on a 14-day cruise that was scheduled to end up here in Ft. Lauderdale on April 2. They were at their first port of call in a northern port city in Chile when these passengers had gone on a shore excursion, a tour up into the Andes mountains. On the way back, their bus ran off the road and 12 were killed, again, and two injured.
Now, many of those people -- this was -- they were part of a larger group of some 60 people on the cruise from the B'nai Brith organization. And it was a B'nai Brith group out of the Monroe Township in New Jersey. They lived in a place called The Palms.
And we had an opportunity just a little while ago to talk to some of their friends there who are clearly deeply saddened by what's happened.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: These were people who were absolutely in love with life and just wanted to go and do and see and grow and enjoy.
UNIDENTIFIED FEMALE: These are people I went down in the river with in China and the top of the wall, and on a helicopter and on everything. They were just so...
(END VIDEO CLIP)
ZARRELLA: Clearly very distraught, many of those people at The Palms. They held a memorial and read the names of the victims there this afternoon.
Now, the cruise line here in Miami, which is headquartered here in Miami, held a news conference earlier today. The company officials were quick to point out that this tour that these people took was not authorized. It was not an authorized shore excursion, it was one that they had arranged themselves, these people. And the president of the company also expressed his deep sadness at what happened.
(BEGIN VIDEO CLIP)
DAN HANRAHAN, PRESIDENT, CELEBRITY CRUISES: The bus in which they were riding swerved to avoid an approaching truck on a rugged mountain highway. The bus apparently ran off the road and plunged 300 feet down a mountainside. Twelve guests on the bus were killed and two other guests were injured in the accident.
(END VIDEO CLIP)
ZARRELLA: We had an opportunity, also, Wolf, just a little while ago to talk to some passengers on the Millennium right now as it is steaming towards its second port of call in Lima, Peru. And they told us that they had taken the same or a very similar shore excursion a couple of days earlier and it was authorized by the cruise line.
But they told us that it was very scary on that mountain road. Just a few inches over to the right or to the left and you were off that road. And they said had they known how dangerous it was going to be, they would not have taken even that authorized shore excursion -- Wolf.
BLITZER: What a sad story, John. Thanks very much.
We're going to have a lot more on this story coming up in our 7:00 p.m. Eastern hour here in THE SITUATION ROOM.
And coming up, every step you make, they may soon be watching you. We're going to tell you about one city's controversial new crime-fighting strategy.
And also coming up in our 7:00 p.m. Eastern hour, Bill Clinton has long battled his weight. Now he's talking about that struggle. Our senior medical correspondent, Dr. Sanjay Gupta, will tell you what the former president is saying.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: So, is the self-proclaimed king of low cost going upscale? One Wal-Mart is now selling, get this, products for the well to do. Ali Velshi's got "The Bottom Line."
(BUSINESS REPORT)
BLITZER: Coming up, the city that never sleeps. And now cameras are rolling around the clock in New York, keeping an electronic eye open on the lookout for trouble. But who or what will they see?
There are also cameras rolling in L.A. And what they see is shocking, four hospital patients discharged and literally dumped on skid row.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Today in the trial against 9/11 conspirator Zacarias Moussaoui, federal prosecutors rested their case.
Let's get all the day's developments from CNN Justice Correspondent Kelli Arena. She's outside the courthouse in Alexandria, Virginia -- Kelli.
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, a former FBI agent told jurors that if Zacarias Moussaoui had leveled to investigators about his ties to al Qaeda and allowed them to search his belongings, that agents could have foiled the 9/11 plot.
(BEGIN VIDEOTAPE)
ARENA (voice-over): Aaron Zebley laid out in detail how the FBI could have gotten the names of 11 of the 19 hijackers by searching wire transfer and calling card records and by visiting flight schools. Zebley's testimony comes a day after a senior aviation official told jurors airport security could have also been tightened. If authorities had known about the plot, he said, they could have banned short-bladed knives like those used by the hijackers from being taken on board.
The jury must decide whether the FBI could have put it all together in the three weeks of Moussaoui's arrest and the attacks and whether Moussaoui's lies caused at least one death on 9/11, making him eligible for the death penalty.
TIMOTHY HEAPHY, FMR. FEDERAL PROSECUTOR: That is a relatively hard sell to a jury. This is not an example of a conspiracy in which Mr. Moussaoui actively worked to achieve that outcome. He was in jail at the time. So the government's theory is his lies prevented affirmative steps taken to essentially thwart the attacks.
ARENA: The trial so far has not gone smoothly for the government. First, there was Carla Martin, a TSA attorney accused of improperly coaching witnesses scheduled to testify. The judge barred them, sending prosecutors scrambling to find a replacement.
Then the FBI agent who arrested Moussaoui admitted he spent weeks trying to convince his bosses Moussaoui was a threat, only to be ignored. And a flight school employee testified the FAA did nothing when she told officials one would-be 9/11 hijacker could barely speak English, an FAA requirement for a pilot's license.
(END VIDEOTAPE)
ARENA: The defense is now calling its witnesses, Wolf, starting with testimony laying out how the government missed a variety of opportunities to stop September 11.
BLITZER: Thanks very much, Kelli Arena.
There's a developing story we're watching right now in the wake of the Dubai ports controversy.
Let's go straight to CNN's Andrea Koppel. She's got details.
Andrea, what's going on?
ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Wolf, I bet if we ask our viewers if they have ever heard of the Dubai government- owned company known as Istithmar, they would be scratching their heads. But -- but, if we asked them about Dubai Ports World, everyone would know about that deal.
Well, CNN has learned that the Treasury Department is now looking at the possibility of opening an investigation, a CFIUS investigation, into Istithmar's purchase of another British company that runs ports here in the United States and has a deal with the U.S. Navy to do port operations as well.
This is something, Wolf, that didn't happen, when it should have -- or possibly should have -- a number of months ago, when the deal closed. The Treasury Department says it is looking at papers right now that the company has given it to determine whether or not they need to open a CFIUS investigation -- Wolf.
BLITZER: All right, Andrea, thank you very much for that.
And the smoke has cleared after the torpedoing of the Dubai ports deal. But how much damage was actually done?
CNN's Brian Todd has been looking into this story. He's joining us now live -- Brian.
BRIAN TODD, CNN CORRESPONDENT: Wolf, by most indications, damage assessment, damage control are still going on.
And, right now, a key relationship is still in the balance.
(BEGIN VIDEOTAPE)
TODD (voice-over): We have seen firsthand how this country the size of South Carolina has transformed itself from a tiny, oil- dependent sheikdom into an economic and strategic powerhouse. We have also seen the United Arab Emirates skewered by American politicians during the Dubai Ports World controversy.
REP. DUNCAN HUNTER (R), CALIFORNIA: Dubai is a place where you can, effectively, ship anything from anybody to anybody. And those are precisely the wrong people to be operating American ports.
TODD: The detractors had ammunition. Dubai was a major financial center for al Qaeda before September 11, a key money base for the 9/11 hijackers.
But, since 9/11, U.S. officials say the Emirates provided intelligence on terrorists, cracked down on weapons trafficking and money-laundering. But, after the port deal:
JOHN MCLAUGHLIN, CNN NATIONAL SECURITY ADVISER: There's a risk here, a chance, that they will lose a lot of their enthusiasm for cooperating as closely with us as they have in the past.
TODD: Take the military.
The port of Dubai and nearby U.S. air bases are critical to U.S. operations in Iraq and Afghanistan. One former U.S. defense secretary says, the UAE may rethink its level of participation.
There are also economic ties, including billions of dollars in trade and American jobs at stake. Free-trade talks between the U.S. and UAE are on hold. And Emirates Airlines, which has been a big Boeing customer, buying billions of dollars worth of planes, can also put its money in European-based Airbus.
RICHARD ABOULAFIA, AVIATION INDUSTRY ANALYST: It's an easy to see a scenario where this poisons commercial relations between the Emirates and the U.S. And that could directly impact Boeing's prospects to sell aircraft to the Emirates. (END VIDEOTAPE)
TODD: Boeing officials tell us, there is no indication of that so far.
But one expert worries that, economically and strategically, the U.S. may have blown an opportunity to show others in the Middle East that it can have close relationships with an Arab country in sensitive matters -- Wolf.
BLITZER: Brian, thank you very much.
How much harm could U.S. business and strategic interests suffer in the Middle East? Could the U.S. lose a newly found ally?
Joining us now here in THE SITUATION ROOM is Sheikha Lubna Al Qasimi, a former information technology executive. She's now the minister of economy and planning for the United Arab Emirates.
Sheikha, thanks very much..
SHEIKHA LUBNA AL QASIMI, MINISTER OF ECONOMY AND PLANNING, UNITED ARAB EMIRATES: Thank you.
BLITZER: ... for joining us.
We met in Dubai. Good to have you here in Washington.
AL QASIMI: Thank you.
BLITZER: Honestly with our viewers, how much damage, if any, do you believe has resulted from the collapse of the Dubai ports deal in the -- in terms of the overall U.S. relationship with the United Arab Emirates?
AL QASIMI: Well, first of all, I need to confirm -- I want to confirm to the audience that it's absolutely a very solid relationship.
UAE had always been a great ally to the U.S. on different levels. And I assure and assure everybody that, for us, this was a business case that got politicized. But it doesn't have -- it doesn't have an impact on the relationship between the two governments.
BLITZER: So, there has been no negative impact?
AL QASIMI: Not at all.
BLITZER: What about the free-trade-area agreements that have been postponed?
AL QASIMI: Yes.
Well, it's important to understand what postponement means, because I think, sometimes, people think this has an implication as a consequence from the DPW case. But it's not. Usually, between two rounds, there are dialogue through video- conferencing or meetings between the different teams. What happened this time, that a lot of this did not finish on time for the round.
So, on my visit here, I actually met with Ambassador Portman and Shaun Donnelly. And we pretty much set the new dates that are upcoming. And we discussed any issues between, you know, the two sides on the free-trade agreement.
BLITZER: The president of the National U.S.-Arab Chamber of Commerce said this earlier in the month: "Capital is a coward. If foreign investors see that they can play by the rules, win fair and square, and then have to go to Congress to deal with domestic political considerations, most international investors will take their money elsewhere."
Will Dubai, the United Arab Emirates, which has a lot of money, take their investments and potential jobs here in the United States outside of the United States? Are you going to stop investing, basically, in the United States, where a lot of jobs are at stake?
AL QASIMI: No, because, let's first pretty much explain the position, the trade position, of UAE.
UAE is the third largest trade partner of the U.S. in the Middle East, after Saudi Arabia and Israel. And this had evolved and developed over the years. So, it is not something new. Many of the contracts that actually had taken place -- Boeing is a great example of that, $20 billion worth of development.
BLITZER: You're buying Boeing 777s...
AL QASIMI: Yes. And...
BLITZER: ... a huge contract.
AL QASIMI: Yes.
BLITZER: Let me press you on this point, because there is some suspicion now, the next phase, you are not going to buy any more Boeings. You are going to go to Airbus, because you are angry at the United States.
AL QASIMI: No. I think every contract is actually being evaluated on merits of its own.
I want to remind everyone that, post-September 11, the largest purchase of Boeing was actually done by Emirates Airlines in the United Arab Emirates. So, that's -- to me, is a good example that, for us, business is business, and it will continue to be that way.
BLITZER: The issue for Americans, of course, is, a lot of aerospace jobs in Washington state and elsewhere are at stake, assuming that the United Arab Emirates and Dubai are going to go ahead and buy a lot more U.S.-made planes. AL QASIMI: Well, I think it's very important to understand that foreign investments, a lot of foreign companies who establish businesses in here, in many ways, continue and contribute in the economy within a -- within a country.
For every billion dollars, you actually generate 10,000 employment here in the U.S. And this actually comes across many contracts, not just Boeing.
BLITZER: Will the U.S.-UAE military strategic relationship be damaged at all? As you know, the U.S. Navy uses the ports in Dubai more than any other ports outside of the United States. There are U.S. air bases that are in the United Arab Emirates. Is there going to be any impact on this military-to-military relationship?
AL QASIMI: No, not at all.
I think it's very important to understand, on both sides, we need each other. And, therefore, you can't jeopardize a relationship over decades because of an incident. The environment in the Middle East is a challenging one and a trying one. And there is need on both sides, on the U.S. and the UAE, to continue this relationship on the military aspect.
BLITZER: Let's -- let...
AL QASIMI: There are 600 calls per year on the U.S. Navy of the Emirates. And this is actually the most frequent foreign port calls after the -- outside the USA.
BLITZER: We just saw the aircraft carrier the Ronald Reagan...
AL QASIMI: Yes, Ronald Reagan.
BLITZER: ... in Dubai.
Here's what the 9/11 Commission report said. And I want to clarify where you stand today on this matter.
AL QASIMI: Yes.
BLITZER: "The United Arab Emirates, the financial center of the Gulf area, also had a reputation for being wide open, with few regulations on the control of money, and a woefully inadequate anti- money-laundering program. The vast majority of the money funding the September 11 attacks flowed through the UAE."
That's what the 9/11 Commission report said.
AL QASIMI: Yes.
I'm hopeful, also, they mentioned that money-laundering had gone through 96 countries, because we...
(CROSSTALK)
BLITZER: But they say the vast majority went through your country.
AL QASIMI: This is because of a structure of hawala, the personal transfers.
As we stand today, UAE stands as a good bench -- benchmark, actually, in the act against money-laundering, with a lot of work and development between the constituencies, the organization, within the U.S. and the United Arab Emirates
BLITZER: Are you funneling charitable contributions, if you will, to Hamas, Hezbollah, groups the State Department deems to be terrorist organizations?
AL QASIMI: First, let's clarify one thing. There is no cash handover in any form or shape within the Emirates going anywhere else.
Usually, in support of people, for example, the Palestinians, and this is in tune of the policy of the U.S. government itself -- we have projects. Usually, we develop hospitals, roads, accommodation for people.
But any money that goes through for any particular reason, actually, for example, in -- in Palestine, gets scrutinized through the Israeli authority, because that's part of the system.
BLITZER: Because the -- the argument is...
AL QASIMI: Yes.
BLITZER: Just as Saddam Hussein gave $25,000 to families of so- called Palestinian martyrs, suicide bombers, the argument is, the UAE may be doing the same thing, in effect, giving money to families of what they call martyrs.
AL QASIMI: UAE actually frowns and it stands against suicide bombers and doesn't give a single dollar to -- or a penny to any of these families, because it is against the policy -- not only the policy, but the -- the philosophy of the UAE itself.
So, there's no money that goes through. We work through NGOs, like the Red Crescent. And, in this process, we only work through projects. There's no money at all. And if there is any money of some form or shape, it actually goes through the process of Israeli clarifications and approval, before it gets to the -- you know, there's a joint effort between the Palestinian entities and the Israelis for any of this process.
BLITZER: Sheikha Lubna Al Qasimi, welcome to Washington. Good to have you here in THE SITUATION ROOM.
AL QASIMI: Thank you. Thank you.
BLITZER: Thanks very much.
AL QASIMI: Thank you. BLITZER: And, still to come, shakeup in the West Wing? Should the president bring in a fresh face to help turn around sagging poll numbers? If so, who do you think it should be? Jack Cafferty has your e-mail.
And need an Internet connection everywhere you go? Find out how, soon, that will actually be possible.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: Today, in our CNN "Security Watch," in the city that never sleeps, Big Brother may soon be staying awake, watching you.
Let's go to Mary Snow. She's on the streets of New York with details.
Mary, what's going on?
MARY SNOW, CNN CORRESPONDENT: Well, Wolf, New York City's police department is looking to enlist an extra -- many extra sets of eyes, in order to step up security.
Some critics, though, are objecting, saying that New York is becoming a surveillance state.
(BEGIN VIDEOTAPE)
SNOW (voice-over): On Fordham Road, whether you're on foot or in a car, the New York City Police Department is watching, capturing your image, sometimes your license plate. Overhead cameras are rolling 24 hours a day, seven days a week.
RAYMOND KELLY, NEW YORK CITY POLICE COMMISSIONER: We more see them as a deterrence tool. So, the fact they're labeled NYPD, I think, you know, may very well prevent anybody from doing something untoward, committing a -- a crime.
SNOW: The other goal, says New York City Police Commissioner Ray Kelly, is to deter terrorism.
Kelly says, New York trails behind cities like London, and he is using homeland security money to add more eyes.
(on camera): Here in the Bronx, police have been monitoring these streets with surveillance cameras for more than a year. They say it has cut down on crime, specifically robberies. Now the New York City Police Department wants to install cameras like this one throughout the entire city.
(voice-over): Five hundred five cameras are slated to create what some call a ring of steel around areas like the Financial District, considered a prime target for terrorists.
Critics question the move. DONNA LIEBERMAN, EXECUTIVE DIRECTOR, NEW YORK CIVIL LIBERTIES UNION: It's -- it's chilling that -- that -- that -- that somebody in government knows every place I go, and with whom, and when. Those a little bit scary, I think.
SNOW: Commissioner Kelly says New York is taking a page from London, where surveillance cameras helped track suspects in last summer's subway bombings.
KELLY: They were a useful tool in -- in London. And, God forbid, we have to use them in -- to -- to that degree here. But I think, you know, they -- they are an effective means of deterrence and, also, an effective investigative tool, when needed.
(END VIDEOTAPE)
SNOW: Here in New York, besides the police cameras, other public agencies use them to monitor subways, housing projects. And, then, there are private groups that install them.
The New York Civil -- Civil Liberties Union says that, at last count, it surveyed only 20 percent of Manhattan and counted some 8,000 cameras -- Wolf.
BLITZER: Mary, thank you very much.
Surveillance camera networks are springing up across the country. Are the police watching in your city?
Let's bring in our Internet reporter, Jacki Schechner -- Jacki.
JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, this is a D.C. Department of Transportation camera. And the police here tap into these when they need to -- also metro cameras. They also have 19 closed-circuit television cameras they use in major events, like protests or inaugurations.
But this is nothing, compared to the network of some 2,000 cameras in Chicago. One hundred of those belong to the police department. Twenty-five, they tell me, are outfitted with a smart technology that can detect gunshots. It turns towards the sound. And it will even tell you what kind of gun has been fired.
They also have cameras in Los Angeles, five in Hollywood, six in MacArthur Park. And they say that crime has gone down in Hollywood 16 percent since these cameras were installed in January of 2005. It has also had a great impact in reducing gang rates as well -- Wolf.
BLITZER: Thanks very much, Jacki, for that.
And, remember, stay tuned to CNN day and night for the most reliable news about your security.
Let's go to CNN's Lou Dobbs. He is getting ready for his program that begins right at the top of the hour. He's going to give us a little preview -- Lou. LOU DOBBS, CNN ANCHOR: Wolf, thank you.
Coming up at 6:00 here on CNN, President Bush today calling for what he calls a civil and dignified debate on immigration reform. A civil debate may be the last thing we see in next week's immigration battle in Congress. Tonight, we will report on the growing rift between Republican leaders on this issue, and new threats from Democratic leaders that could doom substantive border security reform.
Also tonight, we will have a special report on California's decision to go ahead with a massive bridge-improvement project using steel from communist China, costing hundreds of American steelmaking jobs. The war on the middle class is going strong. We will update you.
We hope you will be with us for that and a great deal more at the top of the hour -- back to you, Wolf.
BLITZER: Thanks very much, Lou. We will be watching you.
Up ahead, a shocking scene from a hidden camera -- homeless hospital patients, some still in gowns -- dumped on skid row. We will have details.
And does President Bush need to pump fresh blood into an ailing White House? Jack Cafferty has your e-mail.
(COMMERCIAL BREAK)
BLITZER: When a sick person leaves the hospital, most likely, they should go home for a little bit more rest and recovery. But there are startling new videotapes showing what's happening to some patients out in Los Angeles.
Let's bring in CNN's Chris Lawrence. He has got these shocking details -- Chris.
CHRIS LAWRENCE, CNN CORRESPONDENT: Wolf, this latest case is a good example of what has been happening here on Skid Row. Older woman in her 60s, she's homeless, but had not even been living in the city of Los Angeles. And she ends up getting dumped here in one of the most dangerous neighborhoods in L.A.
(BEGIN VIDEOTAPE)
LAWRENCE (voice-over): So many patients have been dumped on Skid Row, the rescue mission installed outdoor cameras to catch them.
This videotape shows a cab making a U-turn, then driving out of view. A few seconds later, Carol Reyes appears, disoriented and wandering about in her hospital gown.
(on camera): Did you ask the cab to take you here?
CAROL REYES, PATIENT: No.
LAWRENCE: Then why did he bring you here?
REYES: I have no idea. If I knew, I would tell you.
LAWRENCE (voice-over): Carol has no idea who paid for the cab.
(on camera): Was this one incident?
ANDY BALES, PRESIDENT, UNION RESCUE MISSION: No. This is the third incident since last Wednesday.
LAWRENCE (voice-over): Andy Bales runs the Union Rescue Mission. He showed us its logs, documenting dozens of incidents where patients were dumped on Skid Row.
BALES: We caught an ambulance with the name of the hospital on the side.
LAWRENCE: The hospital that released Reyes says, patients should be discharged with dignity.
DIANA BONTA, VICE PRESIDENT OF PUBLIC AFFAIRS, KAISER PERMANENTE: I want to apologize to this patient. I want to sincerely apologize.
LAWRENCE: Kaiser Permanente and other hospitals are working with the Mission to more closely monitor discharge policies.
BALES: And make sure you call ahead, we know we have a bed, we know they're going to welcomed and treated with dignity. Don't drop them off like baggage.
LAWRENCE (on camera): Were you angry?
REYES: Yes. And I still am.
LAWRENCE: Why?
REYES: I don't like what happened -- is happening.
(END VIDEOTAPE)
LAWRENCE: The Los Angeles city attorney is using these logs as part of an investigation into patient-dumping, but says it can be hard to prosecute, because most of the victims can be mentally unstable. He's hoping that the hospitals step up and work with the police to stop the practice -- Wolf.
BLITZER: Chris, thank you very much, Chris Lawrence in L.A.
Let's go to New York. Jack Cafferty is standing by with "The Cafferty File" -- Jack.
CAFFERTY: Wolf, President Bush suggested earlier this week that he may add a new senior figure to his White House team. Today's "New York Times" reports that the names under consideration include Secretary of Health and Human Services Michael Leavitt and former Chairman of the Republican Party Ed Gillespie. The question we asked is, if President Bush brings someone new into the White House, who should it be? A note up front that some of you didn't take this seriously.
Fran from Ocklawaha, Florida: "Consistent with the administration's admonition to the Shiite majority in Iraq that it should be inclusive, I believe President Bush should replace Donald Rumsfeld with John Murtha."
Michelle in Juneau, Alaska: "I think we would be better off if the White House was vacant at this point."
Robert in California suggests: "David Gergen, Leon Panetta, Governor Richardson of New Mexico, or Arlen Specter."
Rick in Marshfield, Vermont, writes: "How about Barbara Bush? His mom, not his daughter -- she could tweak his ear when he says something stupid, ground him from Air Force One when he's bad, and make him read a book without pictures."
L. writes: "If this administration was my car, I would jack up the radiator cap and attach a new vehicle to it."
And Bob in Studio City, California, writes: "Anna Nicole Smith. I mean, she has no brains, no class, and no tact. But she's still able to get issues all the way to the Supreme Court. That's clout, baby."
(LAUGHTER)
BLITZER: Nice to know our viewers have a sense of humor.
CAFFERTY: I don't know. Think about Anna Nicole in the White House. I mean, it conjures up all kinds of...
(CROSSTALK)
BLITZER: I don't want to think about that.
CAFFERTY: ... doesn't it?
(LAUGHTER)
BLITZER: Not happening.
(LAUGHTER)
BLITZER: Thanks, Jack. See you in an hour.
Up next, need to maintain a direct line online? You may soon be getting your wish. We are going to tell you what's coming up.
(COMMERCIAL BREAK)
BLITZER: Lots of Internet users have to come to love -- have come to love their wireless access. The trouble is, you can't always get that access everywhere. How close are we to constant connectivity?
CNN's Miles O'Brien reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: It's great that Wi-Fi technology exists, but if I need to spend all day searching for a hot spot, it doesn't help me.
Wi-fi is a way to get on the Internet wirelessly, and a hot spot is a public place where you can do it. Right now, if I need to get information, I have got to scramble around to try to find the nearest hot spot.
I want to get access everywhere. I want access on the street corners, in a subway, in a bus, so that I can get access to whatever information I want, whenever and wherever I am.
MILES O'BRIEN, CNN SPACE CORRESPONDENT: Hot spots are great, but what if you're in the cold abyss that lies between them? Might as well be digital Siberia. So, how long before we can connect wirelessly, wherever, whenever, seamlessly? Now, that would be hot.
(voice-over): Frank Hanzlik is director of the Wi-Fi Alliance, which sets standards for the technology, and he says Wi-Fi is spreading like wildfire.
FRANK HANZLIK, MANAGING DIRECTOR, WI-FI ALLIANCE: And one of the things that we're really going to see over the next few years is this notion, really, of seamless connectivity. So, you're actually going to stay connected using a variety of different networks. You're not going to know you're on one network or another network. You're just going to stay connected with the best network at the lowest cost.
O'BRIEN: In other words, you could use one mobile device everywhere -- home, office, on the road -- painlessly tapping into a quilt of networks, without missing an e-mail or a call.
HANZLIK: The nice thing about Wi-Fi is, we're really just getting started. We're seeing Wi-Fi move into consumer electronics products, but we're also seeing Wi-Fi moving in the future into cars.
So, vehicle navigation systems, intelligent highway management systems, those kind of things are really going to enable us to travel with -- with a lot more intelligence and a lot more convenience as well.
(END VIDEOTAPE)
BLITZER: That's it for me. We will be back in one hour, 7:00 p.m. Eastern.
"LOU DOBBS TONIGHT" starts right now.
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