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Former Top White House Official Says Leaking Of Classified Material On Iraq Authorized By President Bush; Could Bush's Credibility Be Hurt? McKinney Apologizes As Grand Jury Decides Whether To Press Charges; Bob Schieffer Interview; Senators Close To Compromise On Illegal Immigration; Senator McCain And Reverend Falwell Becoming Latest Odd Couple Of American Politics?

Aired April 06, 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: Ali, thank you very much.
To our viewers, you're 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, it's 4:00 p.m. in Washington where we're following a developing story. Did President Bush authorize the leak of secret intelligence on Iraq? Given his strong public stand against leaks, will this cause more harm to his standing with the American public?

He has seen a lot of high level leaks in his decades as a journalist. I'll discuss the latest disclosure with Bob Schieffer of CBS News, and we'll also talk about the decision to hand over his anchor chair to Katie Couric.

Also, a stunning turnaround from Cynthia McKinney. As a grand jury weighs charges against her for scuffling with Capitol Police officers, the Congresswoman makes a public apology and praises the police.

I'm Wolf Blitzer and you're in THE SITUATION ROOM.

Already battered in the public approval polls, President Bush may be headed for another setback. In court papers released today, a former top White House official says the leaking of classified material on Iraq was authorized by the president himself.

Our senior political analyst Bill Schneider is standing by. Our Internet reporter Abbi Tatton has new information. Let's go to the White House first.

Our White House correspondent Ed Henry has the latest -- Ed.

ED HENRY, WHITE HOUSE CORRESPONDENT: Wolf, this is the first evidence that the president himself actually authorizing release of parts of a classified intelligence estimate on Iraq to refute critics like Ambassador Joe Wilson who had been raising sharp questions about the rationale for war.

This suggests that the push back reached the very top, the highest level of this White House, and will only increase the stakes of the CIA leak case because it now raises the specter of the potential of the president himself being called to be a witness in this leak case.

That's because the documents reveal the testimony of Scooter Libby, the former top aide to the vice president who has been indicted on charges of lying and obstruction of justice, the documents say, quote, "Defendant Libby testified that the vice president later advised him that the president had authorized defendant to disclose relevant portions of the NIE."

That's the intelligence estimate document involving Iraq. It's important to underscore, though, that the president has the legal right to declassify this information or any information like it.

It's also important to note, as well, that this information that was declassified did not include the identity of the CIA agent Valerie Plame Wilson. That's what the special prosecutor Patrick Fitzgerald is obviously focusing on in his investigation.

But this does -- the fact that it suggests the president released other sensitive information is only adding fuel to the fire. Senate Democratic leader Harry Reid today charging that this was, quote, "selective leaking of classified information for political purposes."

The president himself did not answer a shouted question from reporters about this matter. The White House press secretary Scott McClellan refusing to comment, and at this point the vice president's office is only referring questions to the special prosecutor -- Wolf.

BLITZER: And no comment from the special prosecutor other than the document he filed in the court?

HENRY: That's right.

BLITZER: Ed Henry, thanks very much. We're going to continue to follow this story.

President Bush has spoken out strongly against government leaks. If he, in fact, authorized the disclosure of classified information, how might that hurt his credibility?

Let's bring in our senior political analyst Bill Schneider -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, the court documents do create a problem for President Bush. They raise the serious question about his political credibility.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): In September 2003, President Bush made this pledge.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If there's a leak out of my administration, I want to know who it is. And if the person has violated law, that person will be taken care of.

SCHNEIDER: At issue, who leaked the name of a CIA agent? In June 2004, President Bush had this exchange with a reporter.

QUESTION: Do you stand by your pledge to fire anyone found to have done so?

BUSH: Yes, and that's up to the U.S. attorney to find the facts.

SCHNEIDER: A year later, the president qualified that pledge.

BUSH: If someone committed a crime, they will no longer work in my administration.

SCHNEIDER: A new standard -- the leak would have to be a crime. Now we learn that Scooter Libby testified that he was told by the vice president he had authorization from President Bush to leak classified information to a reporter.

Libby testified that the vice president's legal counsel told him, "presidential authorization to publicly disclose the document amounted to a declassification of the document." In other words, when the president authorizes it, the leak is not a crime. Congressional critics were quick to pounce.

REP. JERROLD NADLER (D), NEW YORK: A president could declassify something for political reasons and no one has the authority to second guess him, because he's the commander in chief.

SCHNEIDER: The issue is President Bush's political credibility. That's what got him elected.

(END VIDEOTAPE)

SCHNEIDER: During his last year in office, only 21 percent of Americans considered President Bill Clinton honest and trustworthy. When President Bush first took office, 64 percent called him honest and trustworthy. Wolf, the contrast could not have been sharper.

BLITZER: Bill Schneider, thank you very much for that.

Let's go to our Internet reporter, Abbi Tatton. She has been digging into those court documents. They're very lengthy, filed by the Office of the Special Counsel.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, they have just been put online, this 39-page court filing at the Office of Special Counsel's Web site here under "legal proceedings." Offers an interesting glimpse into the government's case here, first of all, talking to how much information has already been turned over to Libby's lawyer, over 12,000 pages. They are in the process of getting another 1,400 pages right now.

It then goes on to look at some of the specific documents that have been requested, those pertaining to potential government witnesses, including White House Deputy Chief of Staff Karl Rove. What Fitzgerald essentially says here is you can't have those documents. Why? Because the government does not intend at this time to call Karl Rove as a witness for the government. He could be a witness for the defense.

The line that everyone is talking about here today is on page 20 of this 39-page document. The president specifically had authorized the defendant to disclose certain information in the National Intelligence Estimate -- Wolf.

BLITZER: Abbi, thank you very much.

And this note: Coming up here in THE SITUATION ROOM, I'll ask Senator John Kerry about this latest news involving the president, the decision to authorize the leak of some classified information. My interview with John Kerry, that is coming up here in THE SITUATION ROOM.

Other news we're following, Congresswoman Cynthia McKinney now apologizing for a scuffle with a Capitol Hill Police officer. This is -- a grand jury here in Washington is deciding whether to bring formal charge against her.

CNN's Brian Todd is joining us. He's in the news room. He has got the latest details -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, we're told the pressure had been building on Cynthia McKinney to de-escalate this situation, pressure that came from members of her own party and from people in the Congressional Black Caucus.

(BEGIN VIDEOTAPE)

TODD (voice-over): How do you go from this?

REP. CYNTHIA MCKINNEY (D), GEORGIA: This has become much ado about a hairdo.

TODD: And this ...

MCKINNEY: It doesn't matter if you're in the United States Capitol or the Georgia Capitol, the issue is racial profiling.

TODD: To this dramatic about face.

MCKINNEY: There should not have been any physical contact in this incident. I have always supported law enforcement, and will be voting for HR756, expressing my gratitude and appreciation to the professionalism and dedication of the men and women of the U.S. Capitol Police. I am sorry that this misunderstanding happened at all. And I regret its escalation and I apologize.

TODD: Cynthia McKinney's office tells CNN McKinney was apologizing to anyone who might have experienced discomfort in the scuffle with the Capitol Hill Police officer. But that apology did not come easily. A member of the Congressional Black Caucus, requesting anonymity, tells CNN other members told McKinney in a closed-door meeting she must apologize, that the situation had to be defused. Other Congressional sources tell CNN the attention on McKinney frustrated the House Democratic leadership.

REP. NANCY PELOSI (D-CA), MINORITY LEADER: Let me say this on Cynthia McKinney. This is a matter that is under investigation. I have said that I don't see any conceivable reason why someone would strike a Capitol Police officer.

TODD: But as McKinney apologized, a Washington grand jury prepared to hear from two Congressional aides -- one Democrat, one Republican -- who witnessed the incident. Sources familiar with the investigation tell CNN it's unclear what impact her apology will have on the case. But at least one former federal prosecutor believes McKinney's contrition may carry weight.

UNIDENTIFIED MALE: It is something certainly that the prosecutor will take into account, whether or not there is true remorse for whatever action she took, absolutely.

(END VIDEOTAPE)

TODD: When we asked if McKinney herself hoped the apology might sway federal prosecutors, her communications director said it was his hope that what he said the "leadership and courage" the Congresswoman displayed today will enable her to get back to her work for her district -- Wolf.

BLITZER: Brian, stand by for one moment. I want to show our viewers a little video we just got, video that shows yet another modest confrontation involving someone working for the Congresswoman and a reporter. This happened just a little while ago on Capitol Hill. Take a look at this tape that we received from our affiliate station, WUSB. Listen to this.

(BEGIN VIDEOTAPE)

QUESTION: Ms. McKinney, did you speak to the grand jury at all? Have you spoken to a grand jury, Mrs. McKinney? Have you spoken at all to the grand jury about anything?

UNIDENTIFIED MALE: I'm going to put your ass in jail the next time you push me.

QUESTION: Sir, do you work for the Capitol police?

UNIDENTIFIED MALE: No, I don't work for the Capitol police.

QUESTION: Who are you a police officer with, sir?

(END VIDEOTAPE)

BLITZER: All right, that's the video, Brian Todd, have you had a chance to speak with her office and get some comment on this videotape?

TODD: Wolf, I did call her office just a short time ago and spoke with her communications director. He told me that she does not -- there are no bodyguards that are in her employ, at least not here in D.C. So this gentlemen on the tape here apparently is not a bodyguard. I asked if there were any aides involved in this. He said there were aides walking along with her and with the time of this incident and later on inside the Capitol.

But what he told me just a short time ago was that none of her aides would act with what I believe he characterized as the level of unprofessionalism or impropriety as to commit such an act when I described to him what was on this tape. So we're getting a little bit of conflict at least from her office on this.

BLITZER: All right, Brian. I got to tell you, having been involved in these kinds of incidents myself over many, many years, covering politicians and others when you're trying to get a comment, obviously, you get a little bit aggressive. This is by no means unusual, this little bumping and shoving that was going on.

Clearly, this happens all the time, especially when a reporter is anxious for some sort of direct comment and the individual doesn't want to necessarily give that direct comment. There's always a little bit of exchange going on. That's not unusual at all. Brian, thanks very much for your good reporting.

Let's get some more good reporting. That would be Jack Cafferty from New York. He's a great -- why are you laughing?

JACK CAFFERTY, CNN ANCHOR: Well, I just -- because of the nice segue you made. I don't know if what I do is called great reporting. I have a question, though.

BLITZER: Yes.

CAFFERTY: The McKinney story. She apparently did not come to this decision to apologize all by herself, right? According to Brian's report, she was pressured into making an apology by members of the Democratic Black Caucus and her colleagues in the House of Representatives. So this really wasn't an act of contrition that was something that bubbled up voluntarily in the depth of her soul.

BLITZER: A lot of people think she should have done this right away and the incident probably would have been history by now. Well, we'll have some more to talk about later on in "The Cafferty File" about this.

Right now, we're going to talk about Scooter Libby, who is hardly fading into the sunset. Vice President Cheney's former top aide telling a federal grand jury that President Bush authorized the leak of intelligence information about Iraq. This is according to court papers filed by the special prosecutor in the CIA leak case.

No indication that either the president or vice president authorized Libby to leak Valerie Plame's CIA identity. But these documents do show that both of the nation's highest officers, the president and vice president, played a role in Libby becoming a secret source of information about pre-war intelligence for the news media.

So the question is this. What does it mean if President Bush authorized Scooter Libby to leak intelligence about Iraq? You can e- mail us your thoughts at CaffertyFile@CNN.com or go to CNN.com/CaffertyFile and we'll read some of your responses in about a half hour, thereabouts -- Wolf.

BLITZER: Jack, thank you very much. Coming up here in THE SITUATION ROOM, revelations President Bush authorized the leak of classified material on Iraq. It's just the latest in a long line of presidential leaks. Our Jeff Greenfield standing by to take a closer look.

Also, we'll talk about the latest development in the case against Congresswoman Cynthia McKinney. Our contributors Bill Bennett and Donna Brazile, they're standing by for our "Strategy Session. "

And Bob Schieffer, the anchor of the "CBS Evening News," he is standing by to join us live here in THE SITUATION ROOM. We'll talk about Katie Couric taking over the anchor chair, as well as this new White House leak revelation. All that coming up. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We want to talk a little bit more about our top story and a stunning development in court papers filed. Prosecutors now say the vice president, Dick Cheney, told Lewis Scooter Libby that President Bush personally authorized the leak of sensitive intelligence information about Iraq before the war.

Joining us now to talk a little bit more about that, as well as some widely watched changes over at CBS News, is the veteran journalist Bob Schieffer. He's the anchor of the "CBS Evening News." Bob, thanks very much for joining us. Also the managing editor and a good one at that.

I want to talk about the changes. But what do you make, given your experience here in Washington over these many years, about this latest revelation involving this leak, Bob?

BOB SCHIEFFER, "CBS EVENING NEWS": Well, I think that the irony here is that here you have the Bush White House, which is known to be anti-leak -- and if there's one thing the president doesn't like, it's officials in the White House talking out of school and leaking documents.

And now if what Scooter Libby says is correct -- and all we know is his version of the events here -- but if it is correct, you have the president and the vice president using their aides to leak selectively classified information. That's a pretty serious charge.

There's a real question, you know, Wolf, as to whether a president can declassify things on the spot. And I'm not the legal expert to give you an answer on that. But I tell you one thing for sure, this is going to make for some fine political fodder for the Democrats. And I would guess that they're already churning out the press releases as we speak.

BLITZER: What does this feel like for you, Bob, a veteran journalist that has been in Washington for decades? A lot of us remember Watergate, Iran-Contra, Monica Lewinsky, Whitewater. What this have the feel for you? Is this a big deal or little deal?

SCHIEFFER: Well, it's a deal that's going to keep the deal going, that's for sure, Wolf. I mean, this thing just seems to find new legs. And when you have the disclosures like this, it gets it back into play and the papers and on television. It just sort of keeps it on the front burner, as it were. And if there's one thing that the president, of course, and the White House doesn't want for people to keep talking about this thing. Well, this keeps them talking for a while, whatever the legal implications.

BLITZER: All right, let's move on and talk a little bit about Katie Couric. The big announcement yesterday. She's going to be taking your chair at the "CBS Evening News." You've done a great job over this past year. The ratings are way up. A lot of the people at CBS news -- and I know many of them have been inspired by the leadership. What do you make of this decision for Katie Couric now to step in?

SCHIEFFER: Well, I think it's a very good thing for us at CBS News. And you and I have talked about this on camera and off, Wolf, and you know that I never had any idea of this being a permanent assignment. I'm just too old to do this. I'm not the person you want to build the news department around.

BLITZER: You're only 69 years old. Mike Wallace thinks you're a youngster.

SCHIEFFER: Well, today's 69 is yesterday's 68 or something, I suppose. But whatever the case, this was always going to be a temporary thing for me, and I wanted it to be that. But it's been really a lot of fun to kind of get everybody back focusing on the news. And we've gotten a very good reaction to it.

But I think what this means, Wolf, is that CBS News management is saying we want to win, we want to go beyond where we are. And it's almost like a baseball team and I've said this a thousand times, when your team starting going after the big salary players on the other team, that's a strong signal that your team is trying to win the world series. I think that's the way it's being read here. We've got a good team put together here.

BLITZER: But Bob, you've narrowed that gap dramatically over the past year. You've really improved those numbers.

SCHIEFFER: Well, I appreciate what you're saying and I am very proud of what we've done here. But we're trying to put together something here that's going to last for the next 10 or 15 years and that's why Katie is coming here. And she's a friend of mine. I'm a fan of hers, Wolf. I talk to her the night before she made this announcement and she is really excited about it.

You know what, people sometimes tend to forget because she's been on the "Today Show" for so long, Katie was a crack reporter. She was a very good beat reporter for NBC. She covered the Pentagon way back when and I think she is going to do a terrific job here. And she is going to get a lot of help from me if she needs it for one thing. We're all glad to see her coming here.

BLITZER: I totally agree. I remember when she was at the Pentagon with Fred Francis at NBC News. I was at the Pentagon those days as well. And she's an excellent reporter. So I totally agree with you on that. Go ahead, Bob.

SCHIEFFER: Can I show you just one thing here? I must say and I'm sure you're as surprised as I am at the amount of attention this has gotten. But here's the latest, Wolf. The "New York Daily News" today, this sort of sums up my feelings. There's the old fellow Bob Schieffer standing there and he says, "No one ever talks about my legs."

BLITZER: I'm sure you have lovely legs, Bob. Let me read to you though what Andy Rooney said on "Imus in the Morning" yesterday. Andy Rooney of CBS News, "I'm not enthusiastic about it," referring to the Katie Couric decision. "I think everybody likes Katie Couric. I mean, how could you not like Katie Couric? but I don't know anybody at CBS News who is pleased that she's coming here."

I assume you heard what Andy Rooney had said.

SCHIEFFER: Well, if he says he didn't know anyone, "I hate to tell you, Andy, but you must have not talked to me because I'm pleased she's coming here. So I would have to question you on that."

You know, I learned a long time ago that I let everybody speak for themselves. That's Andy's view. That's what, you know, that's what Andy does. He speaks his mind. I just don't agree with him. He's a great friend of mine, but I don't agree with him on that.

BLITZER: A couple little nuggets just to wrap up. You are going, we hope, doing "Face the Nation" on Sundays, is that right?

SCHIEFFER: That's my plan. I want to do that and that was what I was planning to do. And that's full-time job as far as I'm concerned. And I really do quite frankly, Wolf, this is very intense work here. And I really do just kind of want to dial back a little bit. I'm going to do a lot of thinking during the summer time, talking to Sean McManus, my boss, and figuring out kind of where we go from here. But I'm planning to stay on "Face the Nation" and I'll be right there.

BLITZER: That's good news for all of us. Bob Schieffer, a journalist's journalist, one of the best in the business. We hope you will frequently join us here in THE SITUATION ROOM, as well.

SCHIEFFER: Thank you very much, Wolf.

BLITZER: Good luck to you, Bob. Good luck to Katie. Good luck to everybody at CBS News.

Coming up tonight in our 7:00 p.m. Eastern hour, the former presidential candidate Senator John Kerry. He'll join us. He's calling for a deadline in Iraq to form a new government and for U.S. troops to start coming home.

And ahead this hour, our CNN contributors Bill Bennett and Donna Brazile, standing by to join us for our "Strategy Session." We'll talk about the swirling controversy involving Congresswoman Cynthia McKinney among other subjects. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Zain Verjee has the day off. Carol Lin is joining us from the CNN global headquarters in Atlanta with a closer look at some other stories making news -- Carol.

CAROL LIN, CNN ANCHOR: That's right, Wolf. The U.S. State Department is condemning a car bombing in the Iraqi city of Najaf. At least 10 people were killed when the bomb exploded near a sacred Shiite shrine today. A city-wide curfew is now in effect. The State Department says it will do everything possible to bring those responsible to justice. Now back in February, an attack on a revered Shiite shrine in Samarra sparked widespread sectarian violence.

Well the military forces say the main Iraqi suspect in last year's kidnapping of an Italian journalist, has been captured. They say Muhammad al-Ubaydi was detained on March 7th in Baghdad. The former intelligence official under Saddam Hussein's regime is linked to Abu Musab al-Zarqawi, who is believed to be the head of al Qaeda in Iraq. News of al-Ubaydi's capture was delayed until DNA tests could confirm his identity.

Now the man who led New York City through the aftermath of 9/11 was on the stand at Zacarias Moussaoui's sentencing trial today. Former New York Mayor Rudy Giuliani testified that it felt like an earthquake when the first World Trade Center tower collapsed. Jurors also saw a videotape of people falling to their deaths from the towers. The jury will decide if Moussaoui should be executed or get life in prison, Wolf.

BLITZER: Carol, thank you very much -- Carol Lin reporting.

Is the border battle about to end in a peace agreement? There's high-fiving and back slapping going on in Capitol Hill right now as U.S. senators say they are very close to a deal that would find a way for millions of illegal immigrants to become legal. Let's go live to our congressional correspondent Dana Bash, she has the latest. Dana?

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well Wolf, since that high-fiving and back slapping earlier today, senators have retreated behind closed doors once again, trying to figure out how to bring that compromise to the Senate floor for an actual vote. But one thing is for sure. After days of thinking they may never get an immigration overhaul through the Senate, now they think they just might. (BEGIN VIDEOTAPE)

BASH (voice-over): Senate leaders from both parties rush to the cameras to celebrate.

SEN. BILL FRIST (R-TN), MAJORITY LEADER: We had a huge breakthrough.

BASH: After a late night of intense behind the scenes talks, a compromise that would allow millions of undocumented workers to eventually become U.S. citizens. Democrats were cautious but they were standing with Republicans and that said it all.

SEN. HARRY REID (D-NV), MINORITY LEADER: And it's something that we can all take a swing at and drive in a run. What would that run be? It would be a run that would give the American people a victory.

BASH: On the most contentious issue, how to handle the estimated 11-to-12 million illegal immigrants, the legislation envisions three categories. Those in the United States more than five years could stay and get on a path to citizenship. Those illegally in the U.S. between two to five years would have to briefly leave the country through designated sites to get temporary work visas.

They would then be eligible for green cards and eventually citizenship. Illegal immigrants in the United States less than two years could not stay legally. Republicans are so divided on the issue, language matters as much as the details. Note Senator Lindsey Graham's effort to sell the compromise to fellow Republicans, who won't support anything that rings of amnesty.

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: I think we've reached a plea bargain with 11 million illegal aliens.

BASH: Still, some Republicans quickly rejected the plan.

SEN. JEFF SESSIONS (R), ALABAMA: I'm not impressed. That's not -- I'm not going to now line up and say, oh, great, we have got a compromise.

(END VIDEOTAPE)

BASH: Now, Republicans, like Jeff Sessions, who are very unhappy with this compromise, as well as some Democrats, are now, Wolf, trying to talk to leaders from both parties to try to figure out how to offer amendments to this compromise.

If this passes the Senate eventually, of course, as we have been talking about for days, the next big hurdle will be trying to come to some kind of compromise with the House of Representatives. The leaders there have opened the door to the idea of a guest-worker program, at least, the House speaker has.

But, of course, many rank-and-file conservatives still are very much opposed to that idea -- Wolf.

BLITZER: Dana, thank you very much.

In today's "Strategy Session," court documents in the CIA leak investigation show that President Bush may have authorized the leak of intelligence on Iraq. What is the political fallout from these new developments?

Joining us now, our CNN political analyst Democratic strategist Donna Brazile, and Bill Bennett, the host of the radio program "Morning in America."

Scooter Libby, in these latest documents, makes a pretty stunning disclosure, that the president and the vice president basically said, go ahead and leak information from this national intelligence estimate, leak it to the press, while it was still classified?

BILL BENNETT, CNN CONTRIBUTOR: They can declassify it. The president can declassify it. The vice president can declassify it. They declassified it. Ten day...

BLITZER: But -- but let me - let ...

BENNETT: Ten days later, it was public.

BLITZER: But, normally, before they do that, there's a committee that reviews classified information. It's highly unusual for the president and vice president simply to, on their own say, you know what, let's declassify this and leak it.

BENNETT: We don't know that the committee didn't get together. But the president is the chief executive officer, elected by the people. This was an authorized release of intelligence.

There seems to be a lot more excitement in the press about an authorized release of intelligence than about the unauthorized release of intelligence or release of confidential documents by the press. This, to me, is not stunning. And I don't think it's interesting.

BLITZER: What do you think?

DONNA BRAZILE, CNN POLITICAL ANALYST: Well, I think it smells like a hypocrite, because, on one hand, the White House is adamantly opposed to leaks, and now we see that this was a selective leak.

The White House has a huge credibility problem. The president has said from day one, if he knew anyone who did -- who gave out this information, he would personally see to it that they were fired or dismissed.

Now, I think the White House has a huge credibility problem with this. And while they are stonewalling the press now, and not coming out and talking about this, they will have to tell the American people exactly what happened.

BLITZER: Let me -- let me weigh you in. But let me read to you...

BENNETT: Sure.

BLITZER: ... what Howard Dean said, the chairman of the Democratic Party.

He said, "The fact that the president was willing to reveal classified information for political gain and put the interests of his political party ahead of America's security shows that he can no longer be trusted to keep America safe."

BENNETT: The president is not a clerk. The president is not a GS-13. The president is the president of the United States. The people who classify information are part of the executive branch. They work for the president.

He has the authority to declassify. And he did. Again, I mean, I -- I'm not surprised at Governor Dean. I'm not surprised at the Democrats. But I don't know why there isn't more distress about the unauthorized disclosure of information. He's the authority of the executive branch. He can disclose whatever he wants to disclose.

BLITZER: Let's talk about Cynthia McKinney for a moment. She went out on -- on the floor today of the House of Representatives and uttered this. Listen to what she said.

(BEGIN VIDEO CLIP)

MCKINNEY: I am sorry that this misunderstanding happened at all. And I regret its escalation. And I apologize.

(END VIDEO CLIP)

BLITZER: She apologized. A lot of people think she should have done that right away, from the beginning.

BRAZILE: Well, you know, it appears that, on the first day, that, when the cops went over to talk to her, that she was ready to put this behind her. And then it escalated. Look, it took -- in my judgment, Cynthia McKinney should have put this behind her days ago. And now that it's behind her, members of the Black Caucus are ready to talk about Katrina aid. They're ready to talk about renewal of the voting rights. They really became very tired about this...

(CROSSTALK)

BLITZER: There are other issues. But is this a case, as she said here in THE SITUATION ROOM, of racial profiling? Here, she is a black woman, a member of Congress. She says she was inappropriately selected, if you will, and that she was manhandled by this police officer.

BRAZILE: Racial profiling is a major issue in this country, but I don't believe -- and I don't know the circumstances or the facts of this. But, as a former congressional staffer, I can tell you that those members of the police force, they are courteous. They go out of their way to try to identify members and staff and to protect the public as well. BLITZER: You think this is over with, now that she has apologized?

(CROSSTALK)

BLITZER: Because there's a grand jury investigation.

BENNETT: I suspect it's over. She apologized. There's -- crying wolf -- and crying wolf -- not Wolf Blitzer, but crying wolf is a bad idea.

(LAUGHTER)

BENNETT: Crying wolf about race is one of the worst things you can do, because it's a serious matter. You don't take trivial incidents and call them racial.

BLITZER: It looks like they are working on a deal to allow...

BENNETT: Yes.

BLITZER: ... guest workers to remain in the United States, to make them legal residents of the United States. And it looks like Republicans, a lot of them, Senator Hagel, Senator Martinez of Florida, are joining with the president in saying, you know what, this is essential that the 10 or 12 million illegal immigrants right now get some sort of legal status and work their way, eventually -- at least most of them -- toward citizenship.

BENNETT: I don't think it will fly. I don't think we will have legislation. This is not something that makes the Republican base very happy.

All I hear on my show -- I think it's across talk radio -- is the rule of law, whatever happened to this, the notion of the flags here, that you can't fly the American flag. The American people, a lot of them, are very upset about it. And they're not happy with John McCain and the others who are signing on to this bill.

BLITZER: What do you think, because there are a lot of, you know, Democrats, base Democrats, especially union workers, who are afraid for their own jobs? AFL-CIO not very happy about a guest- worker program.

BRAZILE: Well, what -- we don't have all of the details, but what we do know about this is that it's almost like a three-tier process, where, if you have been here for less than two years, you have to go home. If you have been here for a certain amount of time, you have to go home, and then you can come back.

And, then, if you have been here for a long, long time, then you can stay. So, we don't have all of the details. But once the details are ironed out, then, the Democrats, I think, will decide whether or not they can embrace this approach.

BENNETT: Secure the border. Secure the border. That has got to be done.

BRAZILE: We all agree on that.

BLITZER: Everybody agrees on that.

BENNETT: I think, once that is done...

BRAZILE: We agree on that.

BENNETT: People want to see that before they see the other promises.

BRAZILE: Well, we both agree on that one.

(CROSSTALK)

BENNETT: OK.

BLITZER: All right. On a note of agreement, we will...

BENNETT: Two out of four.

BLITZER: ... end the "Strategy Session."

(LAUGHTER)

BLITZER: Thanks to both of you guys.

BRAZILE: Thank you.

BLITZER: Thank you very much.

BENNETT: Thank you.

BLITZER: And up next in THE SITUATION ROOM, President Bush may be the latest to authorize a high-level leak, but there's a long history of presidential disclosures. And only our Jeff Greenfield has the historic perspective to take a look back. He's standing by live.

Are they the latest odd couple of American politics? That would be John McCain and Jerry Falwell. They are finding lots of common ground right now. What is going on?

Stay with us.

(COMMERCIAL BREAK)

BLITZER: One is a maverick. The other is a minister. Are the Senator John McCain and the Reverend Jerry Falwell becoming the latest odd couple of American politics?

Let's get some answers. We will turn to our chief national correspondent, John King -- John.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Well, Wolf, it certainly is an interesting time in the political life of Senator John McCain.

Just today, he's working with the liberal Senator Ted Kennedy on an immigration compromise. And he thinks about and begins to prepare to run for president again in 2008, as you noted, an odd relationship and a new alliance with Jerry Falwell.

(BEGIN VIDEOTAPE)

KING (voice-over): The old warrior of the moral majority is looking to shape the next presidential campaign and striking what to many is a surprising alliance.

JERRY FALWELL, CHANCELLOR, LIBERTY UNIVERSITY: For those of us social conservatives, he, at this moment, is by far the strongest candidate we could field against Hillary Clinton.

KING: He is Arizona Senator John McCain, the same John McCain who lashed out at Falwell six years ago, as his 2000 presidential campaign faltered.

SEN. JOHN MCCAIN (R), ARIZONA: Neither party should be defined by pandering to the outer reaches of the American politics and the agents of intolerance.

FALWELL: I paid no attention to it then. And, when we sat down last year in his office, it was as if it had never been said.

KING: Moving on includes McCain delivering the commencement address next month at Falwell's Liberty University, where young evangelicals are urged to be active in politics.

No outright endorsement yet, but Falwell is helping McCain arrange other appearances before conservative groups and offering to travel with the senator to help heal the wounds of campaign 2000.

FALWELL: My guess is, it will take him about six months of sincere communication with people in the religious right on certain platforms to put that all to -- to rest.

KING: It is a risky choice for Falwell, a test of his influence a quarter-century after the moral majority's heyday. But it's clear he relishes being back in the game and thinks the risks of a less tested Republican nominee are far greater.

FALWELL: Well, there's no question in my mind that Hillary Clinton will be the Democratic candidate. She is going to have to shoot Bill or something not to be.

(END VIDEOTAPE)

KING: Now, this alliance is a risk for Falwell. It's also a risk, of course, for McCain.

He's the straight-talker, as he likes to call himself. And the risk is, he will be accused to pandering to a constituency that helped undermine his campaign in the last cycle. But I spoke to Senator McCain earlier today, Wolf. He says he just wants to show that he doesn't hold any grudges and he's reaching ought to all wings of the Republican Party.

BLITZER: He opposes abortion rights for women. Where does he stand on same-sex marriage, Senator McCain?

KING: He says he would vote against a constitutional amendment banning gay marriage. He said that again today, because there have been some questions as to whether he is softening his position on that.

He says, a lot of these decisions, abortion and other issues, should be left up to the states. But, as to a federal constitutional amendment banning same-sex marriage, he said he would vote against that.

BLITZER: John, thank you very much.

Coming up, Rudy Giuliani becoming the symbol of New York City after the September 11 terror attacks -- what the former mayor told a grand -- a -- a jury, that is, about the horrors he witnessed on that awful day and why it could mean the difference between life or death for Zacarias Moussaoui.

And today's revelation about President Bush and classified material on Iraq isn't the first instance of a presidential tip-off. We are looking back at some major White House leaks.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Carol Lin joining us from the CNN Global Headquarters in Atlanta with another quick look at some other stories making news -- Carol.

LIN: Pleasure to be with you, Wolf.

British officials say tests confirm that a wild swan found dead in Scotland was infected with the deadly bird flu virus. Tests are now being done on 14 other birds to see if they have the virus. Now, this is the first case of bird flu in the British Isles. The deadly H5N1 strain has infected millions of birds and killed more than 100 people worldwide since 2003.

Now, here in the states, more evidence of a strong job market. The Labor Department says the number of Americans filing for unemployment benefits fell by 5,000 last week to 299,000. It's the third week in a row that unemployment claims are down. The government's unemployment figures for last month are due out tomorrow.

Now, the FDA says it has now found the chemical benzene in soft drinks at levels above those considered safe for drinking water. Benzene can cause cancer. But FDA officials say there's no reason for the public to worry. Last week, officials said the FDA had found insignificant levels of benzene. It can form naturally and is found in gasoline, cigarette smoke, and forest fires.

All right, Wolf.

BLITZER: Thank you, Carol. Thanks for that.

The FBI just has issued a report detailing the most common type of Internet fraud facing users online. Do you match the victim profile? This is important information.

Our Internet reporter, Abbi Tatton, is joining us with some answers -- Abbi.

TATTON: Wolf, this is the Internet Crime Complaint Center, a place -- it's a government site -- a place where members of the public can file their cases of Internet crime online. And they certainly have been doing that since this center was founded in 2000.

The complaints have been rising. Last year, it was up to almost a quarter-of-a-million complaints. By far, the top complaint in 2005 was auction fraud. There are many types of this. This is people claiming online they have something to sell that they don't, not handing over the goods after a transaction. The report goes on to state some of the ways you can protect yourself.

For example, at sites like eBay, you can find out more about the seller. Look at the feedback of the seller there from other users of the site. The report also goes on to look at the perpetrators of Internet crime. It seems that three-quarters of them are male. They're placed all over the world, but the majority are in the United States.

If you have been the victim of Internet crime, go to ic3.gov to file a complaint -- Wolf.

BLITZER: Abbi, thank you very much.

Up next, we have just received an update on the condition of ABC News anchor Bob Woodruff. We are also going to show you the first picture that has been released of Bob since he was injured in Iraq. That's coming up.

Also, what does it mean if President Bush authorized Scooter Libby to leak intelligence about Iraq? It's our question of the hour. Jack Cafferty with your e-mail.

And the history of leaks -- court papers indicate, President Bush authorized at least one leak. He's certainly not alone. We will get the history of White House leaks from our own Jeff Greenfield.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: ABC News president David Westin has just released a photo of ABC News anchor Bob Woodruff. He's here. Look at him. He looks great. He's in his home in Upstate New York, in Westchester. And he has also released a statement. That would be Bob issuing this statement.

Let me read part of it to you, our viewers: "I am moving on to outpatient treatment, and I can't tell you what a blessing it is. Though I know there's still a long road ahead, it's nice to be feeling more like myself again, laughing with family, reading bedtime stories, and reminding my kids to do their homework."

Bob goes on to write this: "I have been moved beyond words by the letters, the cards and the genuine good wishes I have received from the viewers. They are a sort of strength and a constant reminder of why I'm putting all my effort toward getting back to work with you. For now, I'm a loyal viewer, proud to watch all of you do what you do best."

That was a message from Bob to the staff over at ABC News. Look at that picture. He looks great. And our best wishes to Bob, his wife, Lee, the entire family. Good luck to him. Hope he makes a speedy, speedy recovery.

Let's get back to our top story right now. Court papers say Vice President Cheney told his former top aide that the authorization to release classified intelligence on Iraq came directly from President Bush himself. And that raises the question: Is leaking a presidential privilege?

For that, we turn to our CNN senior analyst, Jeff Greenfield -- Jeff.

JEFF GREENFIELD, CNN SENIOR ANALYST: Wolf, does a president have the authority to declassify intelligence on his own? I'm going to let the legal community sort that one out. Most of them say yes.

But, on a different question, do presidents and other top officials leak sensitive information for their own purposes? The answer from history is easy: You bet.

(BEGIN VIDEOTAPE)

GREENFIELD (voice-over): It goes back to the republic's earliest days, when Alexander Hamilton and Thomas Jefferson, mortal political enemies, happily leaked information about everything from finances to sexual behavior about each other.

A century ago, President Teddy Roosevelt leaked a story that John D. Rockefeller opposed his plan to create a new agency to crack down on corporate wrongdoing. A generation later, Franklin D. Roosevelt leaked a story that his 1940 opponent, Wendell Willkie, had a mistress.

(BEGIN VIDEO CLIP)

FRANKLIN DELANO ROOSEVELT, FORMER PRESIDENT OF THE UNITED STATES: Now, you would be amazed at how this story about the gal is spreading around the country.

(END VIDEO CLIP) GREENFIELD: President Eisenhower once called a "New York Times" correspondent, James Reston, to float the story that Ike might consider using nuclear weapons in Korea, a leak designed to pressure China on peace talks.

And administrations from Kennedy's to Nixon's to Clinton's saw to it that favorable information, whether on U.S. Soviet relations...

(BEGIN VIDEO CLIP)

RICHARD NIXON, FORMER PRESIDENT OF THE UNITED STATES: ... carried all over the Soviet Union. That's a fair bargain.

(END VIDEO CLIP)

GREENFIELD: ... Vietnam, or the special prosecutor's conduct in the Monica Lewinsky case, found its way into the press.

In the current case, the president and vice president appear to have been eager to push back on the idea that there was no good reason to suspect Iraq of trying to acquire nuclear weapons material.

At least one former official has told "The National Journal" that the leaking was selective. Material that supported the Bush administration views was leaked, but other information casting doubt on their claims was not.

(END VIDEOTAPE)

GREENFIELD: We're long used to hearing president's condemn the leaking of sensitive information in the strongest of terms, but maybe the most honest assessment came, famously, from President Kennedy, who once said, the ship of state is the only ship that leaks from the top -- Wolf.

BLITZER: Jeff, thank you very much -- Jeff Greenfield with that.

Still to come, Jack Cafferty -- he's going to be back with your e-mail on these new developments in the CIA leak case.

And Rudy Giuliani tells a jury what he and New York City went through on 9/11. What the former mayor's testimony could mean for Zacarias Moussaoui, that's coming up here in THE SITUATION ROOM in the next hour.

(COMMERCIAL BREAK)

BLITZER: Let's go right to New York and Jack Cafferty with "The Cafferty File" -- Jack.

CAFFERTY: Thanks, Wolf.

The question is: What does it mean if President Bush authorized Scooter Libby to leak intelligence about Iraq?

A lot of mail. Kathy in Tucson, Arizona: "If President Bush authorized Scooter Libby to leak intelligence about Iraq, it just confirms that the president and the White House had made up their mind to go to war in Iraq and did not want to be confused with the facts."

Eric in Atlanta: "It's the icing on the cake. And there is now enough icing for impeachment discussions to begin. George Bush should be familiar with the three-strikes-and-you're-out rule. Well, I think he's on strike 13 or so."

Connie in Burlington, Kentucky: "I think it's time for this president to resign, take his cronies with him. He has shown little or no respect for the office. And they are all an embarrassment to the country and the world."

Matthew in Manhattan, Kansas, writes: "It means nothing, really. I think that most reasonable and logical people expect this from the president. His base is fanatical. They won't care. They will think the media and liberals are just making it up."

Mike in Las Vegas, Nevada: "I seem to remember the president saying that leakers in his administration would not be tolerated. It means the president is a hypocrite."

And Jason in Springboro, Ohio: "It means the Democrats have something a little fresher than the ports deal to remind the American people of during the upcoming elections" -- Wolf.

BLITZER: Jack, thank you very much.

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