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The Situation Room
Terrorism Suspected in Egypt Explosions; Bush Approval Rating Lowest Ever; Top Republicans Pushing for Response to Gas Prices; Interview with Congressman Dana Rohrabacher
Aired April 24, 2006 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: To our viewers, you're 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, a developing story out of Egypt. Explosions rock a Red Sea resort. Dozens are dead or injured in what one official is calling a terrorist attack. We'll have the late-breaking details.
Also this hour, President Bush hits another new low in the polls. What's pulling him down this time? It's 1:00 p.m. in Las Vegas where Mr. Bush is wrapping up a fundraising stop and we're just seconds away from unveiling our brand new poll numbers.
Plus, an open snub of the president and a slap at his stance on immigration. It's 1:00 p.m. in California where an outspoken Republican congressman is ready to tell us why he's keeping his distance from Mr. Bush.
And congressional Republicans put the pedal to the metal in response to soaring gas prices. It's 4:00 p.m. here in Washington. Can GOP leaders get mileage out of an issue that Democrats are trying to use against them?
I'm Wolf Blitzer and you're in THE SITUATION ROOM.
Up first this hour, smoke rising from an Egyptian resort and bodies are strewn in the street. That's the scene after at least three explosions tore through a city popular with foreign vacationers at the height of the tourist season. CNN's Ben Wedeman is joining us now on the phone with the latest. Ben, update our viewers what we know.
BEN WEDEMAN, CNN CAIRO BUREAU CHIEF (on phone): Well we know that in about two hours and 45 minutes ago there were three blasts in the Egyptian resort town of Dahab in the Sinai. Now just a little while ago, just moments ago, the official news agency here quoted President Hosni Mubarak as saying that it was basically that the Egyptian authorities will punish the perpetrators of the terrorist attack.
And it seems that the president himself is now confirming that it was indeed an attack. Now, just a little while ago, we received a statement from the Egyptian interior ministry saying that the blast took place in two cafeterias and a supermarket in the market area of downtown Dahab.
According to that statement, 10 people killed, six Egyptians and four foreigners. Their precise nationalities have not yet been stated. In addition to that, the statement said that 70 people were wounded in these three blasts. Wolf?
BLITZER: The assumption, the working assumption I take it based on previous terror attacks in Sinai and Sharm El Sheikh or in Taba, the working assumption this is the work of al Qaeda. Is that what you're hearing there?
WEDEMAN: Well certainly that is where many of the suspicions lie. This is the third such attack in less than two years. The first one was in October of 2004 in Taba, which just about an hour and a half drive north of Dahab.
And that left more than two dozen people dead. In that instance, Egyptian investigators found that there were local Bedouins who had -- some had contacts with al Qaeda, Osama bin Laden's terror network. And in July of last year, more than 80 people were killed in a similar attack in Sharm El Sheikh. In all instances, multiple blasts and certainly the suspicion is that this is part of a pattern that is emerging in the Sinai. Wolf?
BLITZER: All right, Ben, we're going to check back with you throughout this program. This hour, next hour here in THE SITUATION ROOM. Ben Wedeman watching this story in Sinai, another apparent terrorist attack. And let's not forget the No. 2 al Qaeda operative Ayman al-Zawahiri is himself an Egyptian and has a special axe to grind against President Mubarak and the Egyptian government.
We'll continue to watch the story for our viewers. Other news we're watching, much closer to home right here in Washington. We want to give you right now the very first look at the lowest approval rating ever for President Bush in any publicly-released poll.
It's our brand new CNN poll coming out right now. Look at this, only 32 percent of Americans say they approve of the way Mr. Bush is doing his job, 60 percent disapprove. It's a dramatic piece of new evidence of the problems facing the president and his party in this midterm election year.
Our White House correspondent Ed Henry is standing by. Our congressional correspondent Andrea Koppel is up on the Hill. Let's start with our senior political analyst Bill Schneider. Tell us about these numbers, Bill.
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Wolf, gas prices up, Bush numbers down. That's some of the story, but not quite all of it.
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I know the folks here are suffering at the gas pump. SCHNEIDER (voice-over): Yes they are, just like everywhere. More than two thirds of Americans say recent gas price increases have caused them financial hardship. Nearly a quarter say gas prices are causing a severe hardship.
Not by coincidence, the latest CNN poll done over the weekend by the Opinion Research Corporation shows President Bush with a 32 percent job rating. In four polls taken over the last 10 days, Bush's numbers have dropped into the low 30s.
Are gas prices driving Bush's numbers down? You bet. Bush's approval drops below 30 among people who say gas prices are causing them severe hardship, even if their income is above average.
President Bush's problem is not just gas prices. After all, his numbers have been dropping all year. And most of those who say they are not suffering any hardship still disapprove of President Bush. What do they expect the president to do? Democrats have their answer.
GOV. JENNIFER GRANHOLM (D), MICHIGAN: And we are asking citizens to join together with us and hopefully with citizens across the country to sign a petition to demand that the president of the United States cap excessive oil profits.
SCHNEIDER: President Bush's answer sounds vague and indecisive.
BUSH: The fundamental strategy to keep us competitive is get off oil.
SCHNEIDER: Republicans may pay a price in the election this fall. Americans who say gas prices are causing a severe hardship say they will vote nearly two to one democratic for Congress, even those with higher incomes.
Democrats have a 12-point lead among those who are facing moderate hardship. Among those who are not facing any hardship, Republicans are ahead, but just barely.
(END VIDEOTAPE)
SCHNEIDER: Like we said, the problem, Wolf, is not just gas prices.
BLITZER: Here's the question, Bill. Nixon-ian numbers, the president seems to be getting close to the twenties, where we saw Richard M. Nixon just before he was forced to resign as president. I guess the question is, how low can these numbers go?
SCHNEIDER: Well the lowest they have ever been is in the low twenties, which is where Nixon was where he resigned in 1974. Jimmy Carter dipped into the twenties, the high twenties, when he was president. And I think there was a brief period of time when Bush's father was dipping below 30 percent. Those numbers are rare and that is certainly not a company this president would ever like to answer.
BLITZER: Some perspective from Bill Schneider, thank you very much.
Let's go over to our White House correspondent Ed Henry. The president is out finishing up a swing through the West Coast. What are they saying about these numbers? What are they saying about the president's problems, Ed?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: The president is basically trying to turn it around, Wolf, by sticking to his guns, insisting again today that he made the right call by spending U.S. troops to Iraq and that he sent the right troops initially.
The president also asserted that if we fail in Iraq, it will create a safe haven for terrorists to launch weapons of mass destruction. Democrats already saying we've heard the song before and they actually believe that the war in Iraq has given terrorists a better chance for that safe haven.
And Democrats also charge that this the new audiotape from Osama bin Laden suggests that the administration took its eye off the ball when it launched the war in Iraq and this strikes right at the heart of the president's credibility, which is why today unprompted, he went after bin Laden directly.
(BEGIN VIDEO CLIP)
BUSH: I believe we're going to win in Iraq. And a victory in Iraq will be a major blow to the totalitarian vision of bin Laden and his lieutenants, a major blow.
One, it will be a tactical blow. We'll deny them that which they want. But secondly, it will be a major blow because in the long term, the best way to defeat an ideology of hatred is with an ideology of hope.
(END VIDEO CLIP)
HENRY: Now the president's words of significant because he has previously been reticent about bringing up bin Laden's name. And it's interesting, a short while ago when I talked to the president's national security adviser, Stephen Hadley, about today's bombing in Egypt, he also brought up bin Laden's name. Take a listen.
(BEGIN VIDEO CLIP)
STEPHEN HADLEY, NATIONAL SECURITY ADVISER: I think one of the things that's interesting is that you hear Osama bin Laden say that this is a confrontation between the West and Islam.
And I think these regrettable events today shows that that's really not the case. This is an attack in a Muslim country. There are going to be Muslims who are going to be -- have been killed or wounded in this attack.
(END VIDEO CLIP)
HENRY: Now, on Iraq, Stephen Hadley touted the fact that they moved closer to forming their own government this past weekend. But when I pressed him on whether or not we have actually turned a corner in Iraq, he stopped short and said this is just one step in a long process, a sign the administration doesn't want to go too far out on a limb, Wolf.
BLITZER: The president's main focus today has been on immigration reform. He's trying to revive the momentum in Congress to get some legislation passed. What did he do today?
HENRY: Well, he took a shot at conservatives, basically stuck to his guns, just like did he on Iraq. He said that a massive deportation of the 11 to 12 million illegal immigrants will not work. And he also once again reiterated he wants a comprehensive approach, border security plus his guest worker plan.
That is so controversial that one conservative House Republican Dana Rohrabacher would not appear on stage with the president today. But the president is pushing ahead. Tomorrow, in fact, he's going to have a bipartisan group of senators on immigration reform trying to get his legislation restarted -- Wolf.
BLITZER: And that is Rohrabacher's district, in which the president was speaking. We're going to be speaking live with the Congressman Rohrabacher shortly.
Thanks, Ed, very much.
Also in the immigration wars, immigrants and their supporters converged on Capitol Hill today to protest pro-deportation measures pending in Congress and the effect they would have on the families. This is the first day back for lawmakers after their two-week spring break. It is also the 10th anniversary of legislation that led to more than a million immigrants being deported.
And a citizen's border patrol group is planning its own protest in Washington. The minutemen accused Congress and the White House of being too weak on border enforcement. They plan a caravan from Las Vegas to Washington, D.C., next month.
Let's go up to Capitol Hill now and another issue that is weighing heavily on the president and his party and his low poll numbers that would be gas prices. Today some top Republicans are pushing for dramatic new action.
Let's bring in our congressional correspondent Andrea Koppel -- Andrea.
ANDREA KOPPEL, CNN CORRESPONDENT: Wolf, you don't need to be a pollster to recognize just how big of an issue the rising gas prices are for the average American consumers. They see it taking a bigger bite out of their paychecks and how do we know that?
Well, lawmakers are just starting to trickle back into town after that two-week recess, and we get this. This is a two-page letter addressed by the Republican leadership, Speaker Dennis Hastert and Majority Leader Bill Frist addressed to President Bush, asking President Bush to reach out to the Federal Trade Commission and to reach out to the Department of Justice to investigate any potential collusion, price fixing or gouging in the sale or distribution of gasoline.
Now, having said that, I have spoken with someone at the FTC, and this official points out that a lot of these things the FTC is already doing. In addition, Republicans are also saying -- Republican congressional staffers telling CNN that the EPA has apparently been asked by the White House to look where appropriate in different regions of the country, where they might be able to get conventional fuel rather than using some of the more -- the less high octane fuel that tends to damage the atmosphere.
Nevertheless, Democrats aren't buying it in the House or in the Senate. They are saying that this is a lot of empty rhetoric. In particular, Democratic Minority Leader Harry Reid is calling upon the Republicans to debate the windfall profits taxing that they could take some of the excess profit that goes to the oil companies and give it back to the American consumer.
(BEGIN VIDEO CLIP)
SEN. HARRY REID (D), MINORITY LEADER: Does anyone think it's fair to have consumers pay $100 a week to fill their fuel tanks and the big energy bosses fill their bank tanks with hundreds of millions of dollars? We, on a bipartisan basis, need to work to provide consumers relief at the gas pump. It's much more important than measures to appease a few.
(END VIDEO CLIP)
KOPPEL: Now it's not just Democrats who are talking about this now. Just yesterday in the Sunday talk shows, the Republican chairman of the Senate judiciary committee, Arlen Specter of Pennsylvania, was asked about this issue, Wolf, and he said that he thought that it should come up for debate -- Wolf.
BLITZER: Andrea, thanks very much. Thanks to Andrea and Bill and Ed, part of the best political team on television. CNN, America's campaign headquarters.
Also, part of that team our own Jack Cafferty getting ready for another week.
You know you're part of the best political team on television, Jack.
JACK CAFFERTY, CNN CORRESPONDENT: Every organization has one member that pulls it down a little bit. What a surprise, Wolf, at the end of the day House Republicans have decided to do nothing about ethics reform. Nothing.
But instead of having the guts to stand up and announce what they plan to do, the changes to the proposed ethics reform bill were quietly posted on the House Rules Committee web site last Friday afternoon, while Congress was still on vacation. I guess they hope nobody would notice. Gone is a provision that lobbyists would have to disclose which lawmakers and aides they have contacted and how they have raised money for those politicians. Gone are proposed changes in the rules allowing members of Congress and their staffs to accept gifts from lobbyists. Gone are any new restrictions on lawmakers who leave Congress and then turn around and become lobbyists.
And once these midterm elections are over, there will once again be no restrictions on junkets paid for by lobbyists. Oh, and one more thing. Enforcement of all these non-rules will remain in the hands of the House Ethics Committee. That's one of the great oxymorons of all time.
Here's the question, are you surprised that Congress has backed away from serious lobbying reform? E-mail us at CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.
BLITZER: Jack, thank you.
Coming up in THE SITUATION ROOM, the president came to his district but he snubbed Mr. Bush, openly. I'll speak live with Republican Congressman Dana Rohrabacher who hates the White House policy on immigration, and he's going to explain why.
Plus, tough talk today from Iran's president. We'll tell you what he had to say and later, should President Bush give his vice president, that would be Dick Cheney, an early retirement? We'll tell you what a major newspaper in the United States has to say about Dick Cheney. Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
President Bush talked up immigration once again today in California, and the Republican Congressman from that district was conspicuously absent. Dana Rohrabacher strongly disagrees with Mr. Bush on many of the immigration reform proposals he has put forward. So he made a point of skipping the event, effectively snubbing the leader of the nation and his own party.
Congressman Rohrabacher is joining us now live from Irvine in California.
Takes guts to not be with the president when he comes to your own hometown.
REP. DANA ROHRABACHER (R), CALIFORNIA: Well, to be fair about it, it's the next district over. My district line starts a few miles away from where the president was actually speaking. However, let me note that my lack of attendance had more to do with my respect for the president. I certainly agree with him on most of the issues. I respect and appreciate his leadership on most issues.
But I so strongly disagree with him on this illegal immigration issue that I felt it would be more respectful for me to stay away rather than to show up and look glum and refuse to applaud and things like that.
BLITZER: He strongly made the pitch for a guest worker or temporary worker program involving those 11 or 12 million illegal immigrants in the United States. I want you to listen to the little clip from what the president said.
(BEGIN VIDEO CLIP)
BUSH: You can come on a temporary basis to do a job Americans won't do. So you don't have to sneak across. Don't have to pay money to a coyote that stuffs you in the back of a truck. So you don't have to burden our borders. We want our border patrol hunting down gun smugglers and dope runners.
(END VIDEO CLIP)
BLITZER: You strongly disagree with him on the guest worker proposal he put forward?
ROHRBACHER: Absolutely. First of all, any guest worker proposal that he's made or the Senate is making includes the provision to normalize the status of those 15 million to 20 million illegals, of course that number is being underestimated, but there's 15 to 20 million illegals. They are going to have their status normalized which will just invite 20 million more illegals into our country.
But the fact is whatever job they are doing, and I disagree with the president, the fact is Americans will do that work if they are paid more money to do the jobs.
BLITZER: Here's what the governor of California Arnold Schwarzenegger said to ABC this weekend. Listen to this.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: The other thing that people talk about, which is let's send them all back. Think about that, how do you do that logistically? How does that work to send 12 million people back? It will cost $500 billion. Who is going to pay for that? I mean it's ludicrous to think this way.
(END VIDEO CLIP)
BLITZER: Strongly disagree with your own governor as well.
ROHRBACHER: The president made the same point today. It's all bogus. This is a bogus false alternative. The fact is no one I know is advocating mass deportations. If we simply prevent people who are here illegally from getting jobs and we stop giving them benefits like free health care and free education for their children and all sorts of other subsidies we give our own citizens. If we don't do that for these legals they will go home on their own. They won't be able to sustain themselves here. This idea that it is either sweeps and mass deportations versus normalization. It's an insult to the American people to offer that as a reason to go for normalizing the status of illegals in our country.
BLITZER: When I spoke with Republican Senator Arlen Specter, the chairman of the Judiciary Committee, yesterday, he still thought there was a chance that you could work out a compromise between the Senate version and the House version, which already passed. Some middle ground that would get through this year and including the opportunity for these illegal immigrants to eventually become U.S. citizens. How far are you willing to go to prevent that sort of compromise from happening?
ROHRBACHER: Well, let's put it this way. The House passed a good bill. We have provisions to strengthen the border and then to help people so that they -- and to hold businessmen accountable for hiring illegals. So it's a good bill.
If the president wants a compromise and the Senate wants a compromise and they are so insistent on the guest worker program the compromise is simple. Support the House bill and then propose another piece of legislation that has the guest worker program and let it stand or fall based on its own merit.
However, these people are so intent on normalizing, meaning given amnesty to those illegals who are already here, that's the real intent. And the fact is what the president is proposing, what the Senate is proposing, will make the legal immigration problem worse. We'll have even more people flooding into our country after we sent that message to the rest of the world.
BLITZER: Dana Rohrabacher is a Republican Congressman from California. Thank you for joining us.
We're just getting this in. We've got some more information now on the apparent terrorist attack in Egypt today, in Dahab on the Red Sea in the Sinai Peninsula. Still the latest numbers we're getting ten dead, 70 injured, three explosions rocking that resort community. Only moments ago in Las Vegas the president of the United States spoke out.
(BEGIN VIDEO CLIP)
BUSH: There was bombings today in Egypt. I strongly condemn the killings that took place. The innocent life lost in Egypt is heinous act against innocent civilians. The United States sends our condolences to the family of those who were killed. We keep those who are injured in our thoughts and prayers. And I assure the enemy this, we will stay on the offense, we will not waiver, we will not tire, we will bring you to justice for the sake of peace and humanity.
(END VIDEO CLIP)
BLITZER: The president expressing his condolences and his outrage over this latest attack in Dahab on the Red Sea in the Sinai Peninsula. We're going to continue to watch this story. We will go there live shortly. Still ahead in THE SITUATION ROOM, the president's approval rating now at another all-time low. What can he do to stop the slide? We're going to get insight from our chief national correspondent, John King.
Also coming up more on the story in our "Strategy Session."
Plus it's down to two in New Orleans. We'll look at the mayoral runoff contest now under way and how race figures in. Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back. I'm Wolf Blitzer in Washington. Let's bring in Zain Verjee. She's joining us from the CNN global headquarters in Atlanta with a closer look at some other stories making news.
ZAIN VERJEE, CNN ANCHOR: Hi, Wolf. Iran's president is again fanning the flames of controversy. Today president Mahmoud Ahmadinejad says he thinks it's unlikely the U.N. Security Council will impose sanctions on Iran over its nuclear ambitions. The Iranian president said most countries on the council are, "rational enough not to make such a great mistake."
Today President Ahmadinejad also compared Israel to a great prison that should be dissolved and that Jews should return to their homelands in Europe. Next hour we'll have a full report from inside Iran.
The Shia Muslim politician chosen to be Iraq's prime minister tells CNN that he thinks U.S. forces could be leaving Iraq in 18 months or less. The Prime Minister Designate Al Maliki says U.S. troops could withdraw could happen if Iraqi security forces get up to speed.
In an exclusive interview with CNN, al Maliki also says he hopes to stamp out the militias in Iraq who have fueled so much of the recent sectarian violence.
Meanwhile in Baghdad, seven car bombs within five hours killed at least eight people and injured dozens. Some of the bombings were spaced about two hours from each other. Others happened within minutes.
Meanwhile, the U.S. military is reporting two more recent service member deaths. Now the number of U.S. fatalities since the war began is 2,390.
And the prosecution says Zacarias Moussaoui represents -- quote -- "unforgivable evil" and should be put to death. But Moussaoui's lawyers say he's -- quote -- "a sacrificial lamb," who should receive life in prison. Those comments came during closing arguments at the trial for the al Qaeda conspirator. The jury began deliberations today. Moussaoui faces a life or death sentence for his involvement in the 9/11 attacks. Meanwhile, a new CNN poll says, 50 percent of those surveyed favor the death penalty for Moussaoui, while 45 percent oppose it -- Wolf.
BLITZER: Thanks, Zain.
Our Internet reporter, Abbi Tatton, is also picking up some new developments in the jury deliberations, the case against Zacarias Moussaoui.
Abbi, what are you seeing online?
ABBI TATTON, CNN INTERNET REPORTER: Wolf, just posted in the last hour at the court Web site here, this is the special verdict form that jurors are considering right now, as they decide the fate of Zacarias Moussaoui here.
They are weighing the aggravating and the mitigating factors here -- the aggravating factors: Did the government prove that Moussaoui's actions caused the -- caused the deaths of firefighters, of police officers in New York City and at the Pentagon, the disruption of services in New York City, of trains, the closure of parks, even, the displacement of businesses?
Then, they are weighing the mitigating factors: Did the defense prove that Moussaoui suffers from psychotic disorders? Did -- was his -- did his father abandon him? Was he subject to racism?
This is a 42-page document. We have posted it online. It's what jurors are looking at. You can look at it, too. It's at CNN.com/SITUATIONREPORT -- Wolf.
BLITZER: Thank you, Abbi.
On our "Political Radar" this Monday, for the first time, a major U.S. newspaper is openly calling for Vice President Dick Cheney to step down. "The Los Angeles Times" says President Bush would truly shake up his troubled White House by forcing Cheney into early retirement. "The Times" said it would be an implicit repudiation of the administration's hawkish and criticized foreign policy.
We will talk more about this coming up in our "Strategy Session."
New developments also today in the New Orleans mayoral runoff -- the incumbent mayor, Ray Nagin, came in first in Saturday's election, with 38 percent of the vote. It wasn't enough, though, to avoid a runoff with the lieutenant governor, Mitch Landrieu. He came in second, with 29 percent of the vote.
Today, the third-place finisher, Ron Forman, endorsed Landrieu in next month's runoff. Forman says Landrieu has the experience to rebuild the city after Hurricane Katrina.
Our chief national correspondent, John King, has just returned to Washington from New Orleans.
What does you look -- what it look like going into this runoff, John?
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: It looks like, right now, that Mitch Landrieu will be the next mayor.
If the same electorate that turns out a month from now as turned out on Saturday, everyone you talk to, including those close to Ray Nagin, concede that Mitch Landrieu likely will be the next mayor of New Orleans.
But -- and this is a big but -- the question is, will this become polarized along black-white racial lines in the month's campaign? Both Mayor Nagin and Mitch Landrieu say they don't want that to happen.
But, when I spoke to Mayor -- Mayor Nagin the other day, he said that he believes he can boost his support among African-Americans by saying, we do not want to lose political power. The question is, can he do it among people who have been displaced? The biggest disappointment for all involved in this campaign is that more people who live around the country -- in Washington, Atlanta, Dallas, Houston, elsewhere -- did not vote in the numbers many expected them to.
If Ray Nagin is going to come back and win this race, he needs to find them and get them to vote.
BLITZER: He has got a month to get his act together over there.
KING: Very tough to do.
BLITZER: Very tough to do.
Let's talk about another thing that is very tough to do, the president of the United States to get his job approval numbers up in this new CNN poll. It's at a record low right now, as we have been reporting. Give us your analysis.
KING: I -- I spoke to a half-dozen Republicans around town today, senior strategists, pollsters. And they say this White House will not worry so much about that 32 percent. Some polls have it at 34 percent. They say, barring some major external, probably international event, like terrorism or something like that, you're not going to see the president -- they are resigned to the fact that you're not going to see the president get above 40 before the elections.
So, what do they want to do? They want to look at the Republican numbers. They want to turn out Republican votes. Right now, about 80 percent of Republicans approve of the president. They want to get that back up to where it was six months ago, which was around 90 percent.
The thing they worried about most is, Democrats are fired up to vote right now. Republicans are somewhat ambivalent. There's no evidence yet, Republican say, that Republican voters will sit on their hands and stay home in November. But that's what they are most worried about. That is what the president will focus on, focusing on taxes, focusing on border security.
But, as you just noted with Congressman Rohrabacher, there are some inherent contradictions. The president will continue to push the guest-worker program. That alienates some conservatives. But they will look for more and more the president can do to focus on Republicans. This will be a base election. Their biggest concern is, Republicans won't vote. They won't worry about the big number. They will worry about their own voters.
BLITZER: Let's see what the architect, Karl Rove, who can devote 100 percent of his energy now to politics, let's see what he can come up with between now and November.
John, good to have you back in D.C.
KING: Thank you.
BLITZER: Up next, much more on the president's newest headache -- his poll numbers sinking to another new low.
And a major newspaper is saying the vice president should call it quits. As if that weren't enough, gas prices keep soaring. Are consumers blaming Republicans? Tough times, indeed, over at the White House.
J.C. Watts and Bill Press, they will square off in our "Strategy Session." That's next.
(COMMERCIAL BREAK)
BLITZER: Welcome back.
Today, in our "Strategy Session," President Bush has reached a new low in the polls. Can he rebound? Are high gas prices partially to blame for his woes?
Joining us now, Democratic analyst and radio talk show host Bill Press and CNN political analyst and former Republican Congressman J.C. Watts.
Thanks, guys, for coming in.
(CROSSTALK)
BLITZER: Let's show our viewers who may just be tuning in.
How is President Bush handling his job as president? Thirty-two percent in our new CNN poll approve. Sixty percent disapprove. But look at this. This may be also very worrisome to the president. Is Bush honest and trustworthy -- which he ran on in 2000? Only 40 percent believe he is.
Fifty-five percent, a clear majority, J.C., think he is not honest and trustworthy. What a challenge he faces.
J.C. WATTS, CNN POLITICAL ANALYST: Well, Wolf, and -- and, Bill, you know, these numbers will be all over the board over the next four or five months.
But I -- I think -- as I said last week, I think the president has four challenges. And I think he's correct. And he's got a communication problem. He's got a relation -- relational problem with Congress. Rob Portman will help there. The communications challenge, get you a new press secretary. He has got a policy and a political problem.
The policy, I think Josh Bolten and this new guy Kaplan will help there. And putting Karl over in the political area, where -- where he probably should have been, is a good thing. So, voter turnout will be key. And -- and I'm not so sure that those...
BLITZER: You're...
WATTS: ... numbers are going to impact Congress.
BLITZER: He's referring to -- he's referring to Karl -- Karl Rove.
BILL PRESS, RADIO TALK SHOW HOST: Yes.
BLITZER: But I want you to respond, but respond in the context of what Donald Fowler, a former DNC chairman, said on Sunday.
He said: "I don't think we can coast through this election year by pointing out the shortcomings, which are multiple and gargantuan, of the Bush administration. I don't think we can do that."
Democrats can't simply assume things are going to fall in place for them.
PRESS: No, they can't. And I think Don is right. And I think Democrats are doing that.
If you saw Rahm Emanuel Friday -- he was on the Bill Maher show -- he laid exactly what -- five things the Democrats stand for, what they're going to do. I thought it was -- and other Democrats are echoing that.
But I think, back to the poll, you know, J.C. is usual -- you're usually right. Most polls go up. Most polls go down.
George Bush's polls are going down, down, down, Wolf. And I think this is really stunning and troubling. I don't think that the gas price -- prices are yet reflected in this poll. I think it's mainly Iraq. And this is after the president has gone out and given 15 speeches, saying, you know, we're going to stay the course and things are going to turn around.
Why I think this is really troubling for Republicans is because I think this -- these 2006 elections are going to be a referendum on the president. And, you know, playing musical chairs at the White House ain't going to fix it.
BLITZER: But it's not just a referendum on the president. The Republicans control both houses of Congress.
PRESS: It's true.
BLITZER: And -- and it will be a referendum on...
PRESS: On.
BLITZER: ... to a certain degree of that as well.
I want you to also respond, J.C. We have heard a lot of calls for the defense secretary, Donald Rumsfeld, to resign. But now a major newspaper, "The Los Angeles Times," says it's time for Dick Cheney, the vice president, to go.
I will read you a paragraph, what it says: "If President Bush hopes the shake-up of his administration initiated last week will reenergize his listless presidency, he's bound to be disappointed. A far more audacious makeover is need, one that sends Vice President Dick Cheney into early retirement."
That's pretty -- almost an -- I mean, it's pretty amazing to have a major paper, like "The Los Angeles Times," say the elected vice president of the United States should retire.
WATTS: Well, and -- and, Wolf, you nailed it, elected vice president.
Editorial pages don't select presidents. The American people do. And I think the president is satisfied with this president (sic). But, again, I -- I -- I don't think that, you know, Dick Cheney or -- or Don Rumsfeld -- and I have had my differences with Donald Rumsfeld -- I don't think they are the issue.
I -- I think we need to get back on offense, as we have said all along. We need to get some policy wins. You know, the Democrats -- and Bill and I were talking about this the green room -- I don't think Democrats are Republicans' problem. I think Republicans are Republicans' problem.
And we have had some policy gaffes. Again, with, I think, Josh Bolten, Joel Kaplan, I think they will do a lot there. We need relationships with Congress. I -- I think the president is making some changes to correct those things.
PRESS: I call this "L.A. Times" idea a good start.
(LAUGHTER)
PRESS: But, you know, and it's not going to happen. But if you really want to show that you're serious about shaking up the direction of this White House, get Cheney to resign.
If you really want to show you're serious about 2008 and having somebody in place who is going to carry the policies in there, get a vice president who can do that. It's not going to happen, because you and I know that -- we all know that Dick Cheney won't let George Bush do it.
WATTS: We should change Dick Cheney because we don't like him?
PRESS: No.
WATTS: We should change Bill...
PRESS: No, no, no.
WATTS: ... Bill -- Bill Clinton because we don't like...
(LAUGHTER)
PRESS: Look...
(CROSSTALK)
WATTS: I mean, you can't get into those kind of games.
(CROSSTALK)
PRESS: You tried.
WATTS: There's a lot of people that didn't like Bill Clinton, but I don't think you should change him because...
PRESS: And you did try to get into that game...
WATTS: ... because some...
PRESS: ... may I remind you? You impeached him.
(LAUGHTER)
PRESS: And you tried to throw him out of office for a lot less than George Bush...
WATTS: Well...
PRESS: ... and Dick Cheney have done.
WATTS: What have they done?
PRESS: Oh, well, lied to the American people about the war in Iraq, lied to the...
WATTS: Well, lie -- Bill -- no, Bill -- come on, bill.
PRESS: ... American people about...
BLITZER: All right.
PRESS: ... about tapping their telephones, just for starters.
WATTS: You need to be sent to bed with no dinner for starting that. (CROSSTALK)
PRESS: Well, how about...
WATTS: That's -- that's just not true.
PRESS: ... gas prices?
BLITZER: Just for the record, J.C., did you vote for impeachment?
WATTS: I did.
PRESS: There you go.
WATTS: I did.
(CROSSTALK)
(LAUGHTER)
WATTS: But the fact -- the facts supported it.
The facts don't support that this president lied concerning the war.
Bill, come on.
PRESS: Oh, J.C., come on.
WATTS: Come on.
PRESS: The evidence is out there.
WATTS: You need to be sent to bed with no dinner.
BLITZER: All right, guys.
PRESS: The evidence is out there. Evidence is out...
(LAUGHTER)
PRESS: "60 Minutes" last night...
(CROSSTALK)
PRESS: ... the CIA nailed it. They told...
(CROSSTALK)
BLITZER: We got -- we got to end it right there, but they will be back.
J.C., Bill, thanks very much.
WATTS: Thank you. BLITZER: Coming up, Enron's former CEO takes the stand and points fingers. We will have details on Ken Lay's long-awaited testimony in his conspiracy and fraud trial.
And politicians caught on tape, always embarrassing. Congresswoman Cynthia McKinney joins a long line of officials who sounded off when they didn't know the mike was still on. Only our Jeanne Moos has a treatment, a special treatment. You're going to want to see this, coming up at 7:00 p.m. Eastern, right here in THE SITUATION ROOM.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: Let's check back with Zain at the CNN Global Headquarters for another closer look at some other stories making news -- Zain.
VERJEE: Wolf, in Jordan, it ended moments after it began, the trial of a female would-be suicide bomber who confessed -- confessed her role in last November's attacks on hotels in Amman. Thirty-five- year-old Sajida al-Rishawi told the court that she does not have a lawyer, prompting the judge to then just adjourn the trial. The woman is charged in the attacks that killed 63 people after the explosives belt that she was wearing failed to detonate.
Former Enron CEO Ken Lay says Enron's collapse was nearly everyone else's fault but his. In his first day on the stand, Lay blamed former Enron financial chief officer Andy Fastow's deceit for the company's failure. And Lay also blamed the collapse on what he called a conspiracy of short-sellers and several media reports about Enron.
And, in Nepal, the protests are quieting down, after Nepal's King Gyanendra announced that he would give in to some of the demands of protesters and opposition parties. The king says he will reinstate the parliament that he dissolved back in 2002. For three weeks, protests have paralyzed Nepal, as pro-democracy demonstrators clashed with police -- Wolf.
BLITZER: Zain, thank you.
Up next, FEMA scrambling to try to repair another mistake in the aftermath of the Gulf Coast storms. We are going to check that out in the "Bottom Line" and online.
Also, we are following a developing story out of Egypt. We will have an update on those deadly blasts at a packed Red Sea resort just a couple hours ago.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Welcome back. Just want to update you on our brand-new CNN poll. Check these numbers out. At the bottom, you see we're at 32 percent. That's the president's job approval number. It's at a record low. It compares to these other numbers that have been coming out in recent days -- not good news for the president.
We're going to be watching that number, and have a lot more on that in our next hour, here on CNN, in THE SITUATION ROOM.
Other news we're following today: FEMA is scrambling to try to recoup more than $1 million in federal funds it erroneously awarded following Hurricane Rita. This audit comes just a month after the agency realized it made the same mistake with Hurricane Katrina funds.
Our Internet reporter, Abbi Tatton, standing by with more -- Abbi.
TATTON: Wolf, here's a letter that over 600 households in Texas have just received, asking them to return assistance money to FEMA sent after Hurricane Rita. And this comes after about 2,000 letters have been sent trying to recoup Hurricane Katrina money.
The assistance money was sent in the form of checks for $2,000, sometimes paid multiple times to the same person. Or, sometimes, money was sent to repair properties that weren't eligible under the program. This comes after a report earlier this year from the GAO about how vulnerable FEMA was to fraud after the hurricanes.
This check was obtained by investigators who just posed as hurricane victims. A spokesman for FEMA says the recoupment of a small percentage of funds is standard after any disaster -- Wolf.
BLITZER: Thank you, Abbi.
Still to come, Congress backs off from serious lobbying reform -- a surprise or not? Jack Cafferty with your e-mail. That's coming up.
Also, the fallout from the firing of a CIA officer who allegedly leaked classified information. Would she be a criminal or a whistle- blower? Our CNN contributor Bill Bennett and Howard Kurtz of CNN's "RELIABLE SOURCES" and "The Washington Post," they have very different assessments. They're ready to square off -- all that coming up.
Stay with us.
(COMMERCIAL BREAK)
BLITZER: Jack is back with "The Cafferty File" -- Jack.
CAFFERTY: Wolf, House Republicans have very quietly decided to do nothing meaningful about ethics reform. They made a lot of changes to the proposed reform bill, very quietly. They were posted on the House Rules Committee Web site last Friday, when they thought nobody was looking and Congress was still on vacation.
The question is, are you surprised Congress backed away from anything meaningful in the way of serious lobbying reform? Kind of a ground-ball question.
Tom in Kingman, Arizona: "They have failed to pass legislation because most of them are 'on the take.' Why would they pass legislation against their own interests?"
Dale in Portland writes: "Of course they're not going to do anything. But, with reporting like yours, we won't let this issue die in committee or conference. Is it November yet?"
Tony in Broken Arrow, Oklahoma: "No, I am not surprised about Congress backing away from serious lobbying reforms, as this is the most corrupt Congress and administration that I have seen in my entire 60 years."
Mel in Spring, Texas: "I'm surprised. I knew they were stupid, but I didn't know they would be this stupid in an election year."
Anthony in Sydney, Nova Scotia: "No one should be surprised. Did you seriously expect them to bite the hand that feeds them?"
And Matt in Los Angeles: "Trying to get the Republicans to release their hold on junkets, gifts, etcetera, reminds me of when Pooh Bear got his paw stuck in the honey pot."
(LAUGHTER)
CAFFERTY: Wolf.
BLITZER: Jack, see you in a few minutes.
Want to go down to Durham, North Carolina.
Our Jason Carroll is watching the investigation in to the alleged rape at the Duke University -- involving the Duke University -- two players from the lacrosse team.
What is the latest? What are you getting, Jason?
JASON CARROLL, CNN CORRESPONDENT: Well, just a few legal maneuvers down here at the Durham County Courthouse. The defense has filed three motions in direct relation to their case.
The first motion has to do with the complaining witness, the accuser, in this particular case. They're asking that the district attorney reveal all background information on this young women -- quote -- "The request is based on the complaining witness has a history of criminal activity, as well as mental and emotional problems."
They also say that the complaining witness has more than one version of her story, which is why they want all of her background information. That's one.
The second motion has to do with Reade Seligmann. You will remember, he's the young man who was charged in connection with this crime, one of two. This is just basically to notify the district attorney that they intend to show that Seligmann intends to present an alibi witness.
Perhaps, Wolf, you heard the story last week about the cab driver who says that he drove Seligmann around the same time that this alleged crime took place. Perhaps that -- that's the alibi witness that they're talking about there.
And motion number three is basically to ask the district attorney to disclose all the information that he has that led up to his case -- so, a little bit of housecleaning here.
But here's an interesting point. They also want the court to consider a pretrial reliability hearing for this young woman, basically just to determine whether or not she's a credible witness at all.
The DA was not around today, but we are told that he probably hasn't even had a chance to even look at these motions yet, that he's still dealing with other cases. We're also told it's not unusual at all for pretrial motions like this to come about at this stage -- Wolf.
BLITZER: Thank you, Jason.
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