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The Situation Room

President Bush to Temporarily Halt Deposits to Strategic Oil Reserve; Immigration Battles Sparks Death Threats Against Latinos; Suspicious Baggage Prompts Evacuations at Miami International Airport; Edward Kennedy Interview

Aired April 25, 2006 - 16:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

WOLF BLITZER, CNN ANCHOR: And 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 5:00 p.m. here in Washington. Under pressure to ease America's gas pain, President Bush offers a prescription: halting shipments to emergency stockpiles and suspending some clear air rules.

Do Democrats have a better idea? I'll ask Senator Ted Kennedy in a special one-on-one interview this hour.

It's 2:00 p.m. in California. Is the immigration debate leading to death threats against top officials? A shocking revelation from the governor, Arnold Schwarzenegger.

And it's early morning in Tehran, where there's tough talk as Iran dares the United Nations to do something about its nuclear program. We're on the scene inside Iran.

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

The pain at the pump is increasing with the average gallon of regular gas up 13 cents in the past week nationwide. Feeling the heat, the president of the United States. He tried today to tell Americans he feels their pain. He vowed to go after any gas price gougers and announced some other steps, saying, "Every little bit helps."

But is it enough to make a difference?

Let's turn to our White House correspondent, Ed Henry. He has the latest -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Wolf, White House spokesman Scott McClellan acknowledged quite candidly today that there's no way of knowing whether or not the president's four-point plan will really cut gasoline prices in any meaningful way. McClellan said this is a long-term problem that needs a long-term fix. But there's so much political pressure on the president with his poll numbers dropping as gas prices rise, so he's trying a short-term fix with this four-point plan.

First of all, the president, as you noted, has decided to halt deposits to the nation's Strategic Petroleum Reserve temporarily. He wants to wait and stop that for the next few months, try to increase supply, ease the burden for consumers.

The president is promoting greater fuel efficiency, also encouraging energy companies to invest in alternative fuels. And even the White House admits it has no evidence there's been price gouging all across the country, the president has launched a federal investigation just incase.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The first thing is to make sure that the American consumers are treated fairly at the gas pump. Americans understand, by and large, that the price of crude oil is going up and that the prices are going up. But what they don't want and will not accept is manipulation of the market. And neither will I.

(END VIDEO CLIP)

HENRY: Now, Democrat Chuck Schumer charged today the president left five key words out of this speech: get tough on big oil. And one way Democrats want to get tough on the oil industry is by going after them with a tax on these windfall profits some of these oil companies have enjoyed. The White House is rejecting that plan out of hand -- Wolf.

BLITZER: Ed, thanks very much.

And you may be surprised by the factors that influence the price of gasoline. Our Ali Velshi has been looking into it. He's joining us from New York with "The Bottom Line" -- Ali.

ALI VELSHI, CNN CORRESPONDENT: Wolf, you know, when you fill gas, your point of contact is with the gas station. At 3 bucks a gallon, there's a lot of anger being directed at that gas, that gas station owner. Now, while they physically change the prices on the sign, and that is a frustrating thing to watch, there's this unseen hand behind the gas station.

Now, here's how it works.

The average filling station has about 10,000 gallons of gas in an underground reservoir. Every time the station gets a new shipment of gas, the owner pays the current price. But gas prices change a whole lot more often than when they get a new shipment.

So, when you buy gasoline, the price you pay usually has nothing to do with what the station paid for the gas. Rather, it's based on replacement cost, the amount that it's going to cost the gas station owner to replace the gas that you just bought.

And the gas station makes a surprisingly small markup. They usually make less than 10 cents a gallon. And that's before expenses. It could be as low as 3 or 4 cents after. That means that the gas station can make more money selling a cup of coffee than on a 12- gallon fill-up.

Now, the big oil companies this week might be a four-letter word for a lot of people. Later this week, ExxonMobil, the most profitable oil company in the world, is going to trot out its earnings. And the company knows that you don't want to hear it. So, it took out this ad in "The New York Times" today, trying to tell us what's good for Exxon is good for the world.

Now, part of the ad reads that, "Earnings are also important for meeting the world's future energy needs. They enable us to continue making vital investments that benefit everyone in the long run."

Wolf, big oil is expected to report almost a 20 percent jump in profits this quarter over the same time last year.

BLITZER: Thank you, Ali, for that.

And coming up, I'm going to speak about gas prices and a lot more with Senator Ted Kennedy, my one-on-one interview. That's coming up this hour here in THE SITUATION ROOM.

There's a developing story we're following in Miami. I want to bring in our Zain Verjee. She's got some initial details.

What are we picking up, Zain?

ZAIN VERJEE, CNN ANCHOR: There appears to be a situation, Wolf, at Miami International Airport. What we're hearing is, is that the Miami-Dade Police say that the Concourse D at Miami International has been shut down. A suspicious package has apparently been identified. A bomb squad is on its way.

These are live pictures from our affiliate, and really all we are seeing is traffic coming in and out of the airport. We're going to bring you more information when we get it, Wolf. Presumably, Concourse D will also have been evacuated.

We're working to confirm details. But again, Miami-Dade Police are saying that Concourse D of Miami International Airport has been shut down, a suspicious package has been identified, and a bomb squad is on its way -- Wolf.

BLITZER: All right. I think we see a live picture of that bomb squad, Miami-Dade Police. We're seeing that courtesy of our affiliate WFOR. That van on the way to the airport.

Zain, we will continue to watch this story, get more details as they come -- become available. Thank you.

Stay tuned to CNN day and night for the most reliable news about your security.

President Bush is trying to use his power of persuasion in the battle over immigration reform. He's been meeting with key lawmakers trying to break the logjam on Capitol Hill.

Let's go live to our congressional correspondent, Dana Bash. She's got the latest -- Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: And that's the kind of thing that senators who are supportive of this bipartisan compromise on immigration really wanted from the president, for him to step up and engage at this meeting in a way that some say that he simply had not done before. That it was critical for him to say what he is for and what he is not for in a more detailed way than he had before.

Now, so, at this meeting, he's sitting with large group of bipartisan senators, Democrats and Republicans. A scene you don't see very much. Here's what the president said.

(BEGIN VIDEO CLIP)

BUSH: There is a common desire to have a bill that enforces the border, a bill that has interior enforcement. In other words, a bill that will hold people to account for hiring somebody who is here illegally. But a bill that also recognizes, we must have a temporary worker program. A bill that does not grant automatic amnesty to people, but a bill that says somebody who is working here on a legal basis has the right to get in line to become a citizen.

(END VIDEO CLIP)

BASH: Now, there you heard the president speaking in details, very different from what he said just yesterday, where he called a compromised piece of legislation that is before the Senate interesting. There much more detail.

They did stop short of specifically endorsing this compromise. But, nevertheless, even Democrats were quite happy. The Senate Democratic leader even was surprised himself at how happy he felt about what the president said.

Let's listen.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: I have to say that this meeting that we just had, I have to say, this was really, I thought, a good, good meeting. He's for comprehensive immigration reform. He said he is, and I believe him.

(END VIDEO CLIP)

BASH: Now, some conservatives were hoping that Mr. Bush also gave a little bit of a nod to them in that meeting in his public comments. Perhaps hoping that he would say he might be for these ideas in principle, but that it would also be important for conservatives who very much oppose this compromise because it's amnesty. It would be important for them to have their say with amendments. Mr. Bush did not do that. And that certainly could be disappointing to some conservatives, we should note, were not actually invited to that meeting. And that is telling in and of itself.

Now, Mr. Bush didn't, as I said, endorse the Senate bill. Perhaps not wanting to make the House Republicans, many of whom think that this compromise goes way too far, didn't want to make them mad, and certainly wanted to give some leverage to these senators.

But the bottom line here, these were words of support, words that all sides are happy with. They still have to figure out how to translate that into action and figuring out how to break the procedural deadlock that still exists over this issue -- Wolf.

BLITZER: Dana, thanks very much.

The immigration debate is taking a ugly turn out in California, where some prominent Latinos are now actually getting death threats.

CNN's Chris Lawrence is joining us from L.A. He's got that part of the story -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Yes, Wolf, we just got off the phone with the lieutenant governor's office, and they told us Lieutenant Governor Cruz Bustamante has received another letter today. This one showed a fist giving him the middle finger -- hold on a second. It's going to be pretty impossible to hear with the fire engines going by.

But what I was saying is that Lieutenant Governor Cruz Bustamante received another letter just today. This one showed a hand giving him the middle finger and said, "What is it you do not understand about the word 'illegal'?" It ended by calling him a name that we can't repeat right here.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This country was built on the backs of immigrants.

LAWRENCE (voice over): The battle over immigration policy has been loud, it's been heated, and now for some California politicians, personal.

MAYOR ANTONIO VILLARAIGOSA (D), LOS ANGELES: Let me confirm there have been threats against me.

LAWRENCE: On Tuesday, the Los Angeles Mayor Antonio Villaraigosa wouldn't say how his security has changed, if at all. He says there's nothing to fear but...

VILLARAIGOSA: Threats like this are always taken seriously, as was mentioned by the governor. The FBI was involved in this most recent threat.

LAWRENCE: In the middle of a national debate on immigration, death threats are being made against prominent public officials. All of them of Mexican heritage. California Lieutenant Governor Cruz Bustamante got a postcard that said, "All you dirty Mexicans should go back to Mexico. The only good Mexican is a dead Mexican."

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: These alarming incidents of threats and hate crimes are not limited to just our prominent leaders.

LAWRENCE: Governor Arnold Schwarzenegger pointed to a Mexican restaurant near San Diego where vandals spray-painted obscenities on the front door, then soaked the place with gasoline and set it on fire.

SCHWARZENEGGER: The greatness of California is its rich diversity. Hate, racism and intolerance are never accepted in our public debates.

LAWRENCE: The governor has said he opposes amnesty for illegal immigrants, but called deporting millions already here unrealistic. He's asking district attorneys throughout the state to be vigilant when prosecuting the threats.

(END VIDEOTAPE)

LAWRENCE: ... as well as the speaker of the state assembly -- Wolf.

BLITZER: Chris Lawrence, pretty disturbing stuff out there. Thanks very much for that report.

Chris Lawrence, Dana Bash, Ali Velshi, Ed Henry, part of the best political team on television. Stay with CNN for all the latest political news.

Jack Cafferty is part of that team, as well. He's got "The Cafferty File".

You're an excellent political reporter, Jack.

JACK CAFFERTY, CNN ANCHOR: Well, we have a little political news. I don't know how good a reporter I am, but this is interesting.

The drumbeat isn't very loud yet, but it's there. Local movements in places like San Francisco, Wisconsin and Vermont are calling for the impeachment of President Bush. And now in Illinois, the Democratically-controlled legislature may take the boldest step yet.

There's a resolution pending in Illinois that calls on the general assembly to submit charges to the U.S. House of Representatives so it could begin impeachment proceedings. The resolution says the president has "... willfully violated his oath of office by manipulates prewar intelligence, leaking classified national secrets, and authorizing illegal spying on U.S. citizens."

It's all part of a rising chorus of voices. In Vermont, a Burlington legislator plans to introduce a resolution asking for the state legislature there to call on the U.S. House to open impeachment hearings.

So, here's the question this hour: Is it a smart strategy for Democrats to call for the impeachment of President Bush

E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Thank you, Jack.

And coming up here in THE SITUATION ROOM, we're going to have much more on our developing story this hour, the closing of two terminals at Miami's international airport. What's going on?

You see these pictures behind us. We are going to bring you the latest on what's going on at Miami International Airport.

Also, lots more on gas prices, the immigration debate, the war in Iraq. We'll speak about those subjects, lots more, with the Democratic senator Edward Kennedy. He joins us in THE SITUATION ROOM this hour.

Also, the most wanted terrorist in Iraq apparently in a new videotape. It's a rare look at Abu Musab al-Zarqawi. We're going to have details of his latest warnings to the United States.

And nuclear tensions flaring between Tehran and Washington. CNN's Aneesh Raman is one of the few Western TV journalist in Tehran right now. We'll have the latest developments.

All of that coming up. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There's a developing story we're following out of Miami, specifically at Miami International Airport. There's an incident unfolding right now.

Let's bring in our Susan Candiotti. She's in Miami with the latest.

What do we know about what's happening at the airport, Susan?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Well, not long ago, according to authorities, they saw a suspicious package going through a luggage screening machine near Concourse D. Now, they have closed off that section of the airport. However, other authorities tell us that people are able to get to their gates.

This is an area involving mostly and mainly American Airlines. But to be safe, they are clearing out the area in that section of the airport, again, because of a suspicious piece of luggage, or a bag of some kind, a package, possibly, going through a luggage screening machine. Wolf, you'll remember that something happened at Atlanta airport, something similar to this just last week. It turned out to be a computer malfunction. Here, we still don't know. Authorities are trying to get to the bottom of it.

BLITZER: We'll continue to watch, together with you, Susan. We'll bring you back as soon as we get some more information. Hopefully it will be an all clear.

Other port news we're watching.

CIA experts are poring over a new videotape featuring a man who appears to be the most wanted terrorist in Iraq. That would be Abu Musab al-Zarqawi.

Our senior international correspondent, Nic Robertson, is joining us now live from London with details of this latest terror tape.

What do we know, Nic?

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Wolf, it was released on the Internet about a few hours ago. It's 34 minutes long.

He addresses -- Abu Musab al-Zarqawi, or the man that looks very like him, has a message for President Bush, telling him America, "Americans will never be safe until we're safe in Iraq." But predominantly, this was a message for the Iraqi people.

(BEGIN VIDEOTAPE)

ROBERTSON (voice over): In a stunning departure from his usual super-secretive ways, Abu Musab al-Zarqawi is deliberately showing his face on video for the first time, revealing not just how he looks, but talking about how he wants to lead Iraq's Sunni minority to victory by sharing leadership of the insurgency.

ABU MUSAB AL-ZARQAWI, AL QAEDA IN IRAQ (through translator): I bring you the good news of establishing the Mujahedin council in Iraq. It will be the nucleus of establishing an Islamic state where the word of god is the highest.

ROBERTSON: The new image is in sharp contrast with Zarqawi's bloody atrocities in the past, seen here on a videotape of two years ago wearing a mask while beheading U.S. engineer Nick Berg.

In the slickly-produced new video, al Qaeda's leader in Iraq is seen firing a heavy machine-gun, getting briefed on the situation in Iraq's western Al Anbar province, even watching a video of crude missiles being tested, named, appropriately enough, "Al Qaeda One." In jihadi terms, he's projecting a softer, more acceptable image, but making it clear he's the boss.

Intelligence experts in the region and tribal leaders from western Iraq have been saying for the last few months Zarqawi wants to legitimize himself among the country's Sunnis. But his message remains hard-line. Intent, it appears, on his previous stated goal of bringing Iraq to its knees by fermenting civil war. He remains resolutely opposed not only to the U.S., but Iraqi Shiites and Kurds.

AL-ZARQAWI (through translator): Your Mujahedin sons were able to confront the most ferocious of crusader campaigns on a Muslim state. They have stood in the face of this onslaught for three years.

(END VIDEOTAPE)

ROBERTSON: Now, Zarqawi says he recorded this message on the 21st of April, Friday, just four days ago, immediately before the new Iraqi parliament agreed on a new prime minister. It's not clear if that is actually true, but the very fact that Zarqawi is coming out on a tape, showing his face publicly, it seems to be an indication that he feels relatively safe and also shows how important he thinks it is that he should become the leader of Iraq's Sunnis -- Wolf.

BLITZER: Thank you very much.

Nic Robertson watching this important story for us.

Our Internet reporter, Abbi Tatton, is also watching. She's getting more details on how this new video surfaced online.

Abbi, what are you picking up?

ABBI TATTON, CNN INTERNET REPORTER: Wolf, this video surfaced on the Internet and it is spreading around rapidly online as well.

We spoke to counterterrorism expert Laura Mansfield earlier today. She's someone that specializes in jihadi activity and how things travel around on Islamic Web sites.

She says she first picked it up on a Web forum hosted in the United Kingdom earlier today. Soon it was appearing on other Islamic Web sites.

This video is a huge file, and large files like this can overwhelm the primary sites that first link to them and post them online. So, what we are seeing is this video cropping up and being passed around on Web sites and file-sharing services that can handle huge files like this.

Bottom line, Wolf, is that this video is being passed around quickly and virally on the Internet.

BLITZER: Abbi, thank you very much.

Coming up, his life hangs in the balance. A jury deliberating his fate. We'll have the latest on the trial of al Qaeda conspirator Zacarias Moussaoui.

Plus, Senator Edward Kennedy, he'll join us here in THE SITUATION ROOM to talk about gas prices, the war in Iraq, lots more. It's a candid interview you won't want to miss.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check in with Zain Verjee. She's joining us from the CNN Center in Atlanta with some other stories making news -- Zain.

VERJEE: Wolf, jurors are weighing the fate of al Qaeda conspirator Zacarias Moussaoui. They finished their second day of deliberations. The nine men and three women will start again tomorrow morning as they try and decide whether Moussaoui should serve life in prison or be executed for lying to investigators about the 9/11 plot. The same jurors found those lies directly resulted in American deaths.

Part of the so-called Lodi terror trial has derailed in California. A judge there has declared a mistrial in the case against Umer Hayat. Jurors deadlocked on charges that he lied to the FBI about his son attending an al Qaeda training camp in Pakistan. A separate jury still deliberating the case against the son.

In our CNN "Security Watch," the Bush administration says it plans to do terrorism background checks on 400,000 port workers and it says it will issue tamper-proof I.D. cards to others with port access, including truckers. The government has been increasingly criticized over port security in the past few months.

Make sure you stay tuned to CNN day and night for the most reliable news about security -- Wolf.

BLITZER: Zain, thank you.

And coming up next, what would happen if the Democrats took back one house of Congress, or both houses of Congress? I'll talk one-on- one with one senator who would delight over a Democratic-led Senate. That would be Senator Ted Kennedy. My interview with the senator, that's coming up.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: We've been following that developing story out of Miami International Airport, an incident unfolding there.

Let's bring in our Susan Candiotti.

What's the latest, Susan?

CANDIOTTI: The latest, Wolf, is that all is well that ends well. It's over with.

What happened was is, again, that a bag went through the baggage screening machines at Miami International Airport, an area between Concourse C and D. Evidently, they saw something they didn't like. It looked suspicious but they looked is situation over, there's no problem, and everything is cleared and the airport is up and running again. No further disruption, Wolf.

BLITZER: Good news. Thanks very much for that, Susan Candiotti in Miami.

And stay tuned to CNN day and night for the most reliable news about your security.

Here in Washington, on Capitol Hill the president's problems are weighing more heavily by the day on Republicans up for reelection this fall. Our Brian Todd has been looking into what might happen if the GOP loses control of either chamber of Congress -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, sinking poll numbers for the president, rising gas prices and daily salvos on Iraq. Could it get worse for the White House? One nightmare scenario starts on Election Day, 2006.

(BEGIN VIDEOTAPE)

TODD (voice-over): A president under political siege. From voters who may exact revenge on his party.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: If this is national election, a national campaign with national issues, there is a serious likelihood that the House and possibly the Senate could turn Democratic.

TODD: Then analysts say, watch out. Years of frustration over prewar intelligence, the CIA leak scandal, the wiretapping controversy would mean an onslaught of investigations that may drive an already embattled White House to distraction.

RON BROWNSTEIN, "LOS ANGELES TIMES": The Democrats would have subpoena power and they would probably be very aggressive in investigating a whole series of questions.

TODD: Right now as the minority the Democrats don't have the votes to do that. But in the House where power is more likely to shift, John Conyers could become chairman of the Judiciary Committee. Already in favor of impeachment, he would have the power to lead a Democratic charge on domestic surveillance hearings. But could his stance on impeachment backfire? Listen to GOP chairman Ken Mehlman in THE SITUATION ROOM.

KEN MEHLMAN, RNC CHAIRMAN: There are people who would like to be the leaders in Washington who believe that rather than giving the president every tool he needs to win the war on terror, they are making comments like impeachment and like censure. I think the American people need to understand that choice on election day.

TODD: And if Democrats retake the House, Henry Waxman, a relentless Bush critic, could be elevated to chair the Government Reform Committee and would have the authority to launch a CIA leak investigation. And what about Jane Harman on the House Intelligence Committee?

SCHNEIDER: She would very likely delve into the lapses in intelligence leading up to the Iraq War, which a lot of Americans are still puzzled by and impatient with. (END VIDEOTAPE)

TODD: Analysts say Democrats are less likely to retake the Senate, but should they, there are plenty of heavy hitters there too who as potential committee chairmen could lead investigations of the Bush White House. Democrats like Jay Rockefeller, Joe Biden, Pat Leahy. It all leads to a possible scenario that according to one analyst could immobilize the president's agenda. But as one expert warns, there are dangers for the Democrats, too, like being seen as only trying to settle political scores -- Wolf.

BLITZER: Clearly a lot at stake in the November, Brian, thanks. And I'm going to be speaking up next with Senator Ted Kennedy. I'm going to ask him about that subpoena power. What would happen if the Democrats became the majority in the Senate?

And later, if push comes to shove, are Americans ready to take action on Iran's nuclear program? We're going to tell you about our latest poll numbers and we'll take you inside Iran where no one seems to be in the mood to take down. Stay with us. Because you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington. We'll get back to our top story right now. President Bush promising today some help for Americans feeling deep pain at the pump. Democrats have been turning up the heat on the president, though.

Earlier today, I spoke with their veteran war horse, a new author, Senator Ted Kennedy of Massachusetts.

(BEGIN VIDEOTAPE)

BLITZER: Senator Kennedy, thanks very much for joining us. Congratulations on the new book, "America Back on Track." I am going to get to that. I want to get to the news of the day, which is the spiraling price of a gallon of gasoline. The president earlier ruled out supporting what's called a windfall profit t tax on the big gas companies, oil companies like ExxonMobil. Is that something you would supporting taxing what some would see the excessive profits of these big oil companies?

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Very definitely so. It's unconscionable now that the major oil companies are having these extraordinary windfall profits at a time when the United States is at war in Iraq, at war in Afghanistan and basically a war on terror, and that the middle class is having such a difficult time in making it. It seems to me that we ought to have a windfall profits tax, rebated to the middle class. But beyond that ...

BLITZER: Let me interrupt for a second. How would you do that? In other words, what impact would taking billions of dollars from the oil companies like ExxonMobil, how would that translate into reduced cost at the pump? KENNEDY: Well, first of all, we are talking about greed on this. And we're talking about fairness on this, and we can, under the tax code, we can have a refundable credit that can go to basically to targeted groups, like the middle class. That's certainly possible. And we shouldn't tolerate the greed that is taking place at the present time.

Secondly the president ought to have the leaders of the oil companies into the Oval Office, and he ought to jawbone them, talk about what is necessary in terms of what is fair in this country, and the obligations that we have to our fighting men and women, and we are demanding fairness from them, and to get them to do something.

Thirdly, the president, six years ago talked about jawboning OPEC. And we haven't had any success in jawboning OPEC, which has been a mistake.

And finally, the energy bill that passed last fall just provided additional kinds of tax benefits to the oil companies without developing the alternative sources of energy.

So, this has been just a disaster. Something that is predictable. And something that we should have anticipated and we are still getting very little action. I applaud the fact that the president is talking about now putting more money onto the market, taking money out of the strategic reserve, that's a modest program. I certainly support it.

BLITZER: But do you have any hard evidence right now that these bill oil companies are engaging in price gouging?

KENNEDY: Well, first of all, we know the excess profits that they have receiving now, not based on additional kind of research, not based on additional kinds of ...

BLITZER: But are they violating the law?

KENNEDY: No. They are not violating the law. That's where we need the Federal Trade Commission to investigate that. When the president said, when he was -- many of us have urged the president to have the Federal Trade Commission to do that, he says, we are asking the Federal Trade Commission to be vigilant on it. That's not satisfactory. The Congress has given the Federal Trade Commission the power to do the kinds of investigations about the price fixing and price gouging.

What I am saying is that the excess profits ought to go as a result of the spiraling profits that these oil companies have made as a result, not as a result of any business decision but because the American family, so to speak, American consumers are, effectively, being gouged.

BLITZER: A lot of experts have suggested, and you just said that this was all foreseen years ago. Brendan Bell, the energy analyst at the Sierra Club was quoted by the "Washington Post" a year ago almost as saying this, "The big problem is we did not make the right decisions 10 years ago." Would you agree with that?

KENNEDY: I would.

BLITZER: There was a Democratic president in power ...

KENNEDY: There's more that should have been done. I must say, we did do more, President Clinton did, with regards to automobiles, and devices, some steps were taken, but those energy steps that were taken were basically relaxed by this administration.

Now this administration, the fact that we have 140,000 men and women that are over there in the Middle East, in terms of trying to have a secure region of the country, and these countries are refusing to understand the kind of economic plight that we are being put through I think is really unacceptable.

BLITZER: The president in our latest CNN poll, which just came out has his job approval number at 32 percent. That's a record low since he took office, and the Republican-led Congress, job approval is lower, in the 20s. Do you believe the Democrats will be the majority in the Senate after November?

KENNEDY: Easy question. The answer is yes. Very definitely so.

BLITZER: If the Democrats are the majority, they then get subpoena power and they can investigate and go after allegations, a lot more thoroughly than obviously as a minority in the United States Senate. Would you expect that to happen after November if you become the majority?

KENNEDY: In an appropriate way, is the use of that power. Now, listen to this. When we had a Democratic administration, Republican control of the House of Representative, they had over 1,100 subpoenas that were used against the Clinton administration in a variety of different kinds of activities.

In the last five years, they have had three subpoenas to try and investigate the single source contracting with Halliburton, the general kinds of climate of corruption and cronyism that we have seen in the recent times. We just have not had the serious oversight which should have been taken.

BLITZER: Where would you -- if you could, right now, subpoena the administration, on what issue would you like to get more information right now?

KENNEDY: Well, I think it's clearly with regards to the investigations of the single source contracts that have been given in regards to Iraq, Halliburton and, also, with Katrina, the great waste and abuse that we saw that took place.

The American people don't have a full understanding of it. I think they will at some time, but they not have to have this kind of failure and this kind of incompetency that is costing the taxpayers so much.

BLITZER: Do you support Democratic Senator Russ Feingold's motion to censure the president?

KENNEDY: It's a close question. The American Bar Association has made a finding that they felt that the president of the United States has violated the law. The Congressional Research Service has indicated that they thought the president had violated the law ...

BLITZER: We're talking about the warrantless surveillance.

KENNEDY: The warrantless surveillance on this. And at the present time, we have -- the Democrats, now, for the first time, the committee, a small committee, is being given the kind of information by which legislation can be prepared, so, it's a shared responsibility with the president and the Congress the way that the FISA law works.

And if we were to have the cooperation of the administration in working that process through, I think it would demonstrate good faith on the part of the administration. In the administration is going to stonewall that effort, then, I think can you reach a different conclusion.

BLITZER: So, you have ...

KENNEDY: That's where I am.

BLITZER: So you haven't made a final decision on censure?

KENNEDY: That's so.

BLITZER: Here's what you write in your new book, "America Back on Track." "It is difficult to assess how secretive an administration is but I have never seen an administration so determined to keep important information from Congress and the people."

You go on to write, "This extraordinary secrecy is a major threat to our democracy." That sounds, if it's that big of a deal, as potential groundwork for impeachment.

KENNEDY: Well, the secrecy issue is obviously something that I think the American people understand and increasingly understand. For example, with the warrantless wiretapping by the administration, I believe that, should we capture the al Qaeda with that kind of a process, there's a very good opportunity that those individuals will not be successfully prosecuted and convicted, and our ability, really, to leverage the prosecution of those people, be heavily compromised because we did not have a constitutional system and legitimate authority by the president of the United States.

This could basically be avoided by the president of the United States. It's not the secrecy over the energy - development of the energy policy. It's just complete, all through aspects. The reclassification of historic documents to deny them public distribution. There's a whole range of different activities. Americans should be entitled to access the information that's not going to threaten the security of the country.

BLITZER: Here's what you write, also, in the book, on Iraq. "Our misguided policies reduced rather than enhanced our influence in the world, created new battalions of terrorists and made it far more difficult to protect our nation and its interests. The war in Iraq, as many had warned, turned Iraq into a breeding ground for terrorism which it had not been before."

Let me rephrase the question I asked on the warrantless wiretaps, now on Iraq. Is this stuff grounds for impeachment as some are suggesting in your party?

KENNEDY: I would say, this is the great mistake about the policy. That's what I'm concerned about, and interested in. There's no question today, now, in retrospect, it was not the activity of al Qaeda in Iraq, there's no question it's a training ground in Iraq and I don't think because of the Iraq war we are safer than we were prior to the time, when Saddam Hussein ruled there.

So, that is -- that is a basically, the position that I have. And I think we need to change policy. I think we are going to try and do that in the remainder of this Congress, and we are certainly going to do it in the congressional and senatorial elections and the presidential elections. That's really as far as I'm prepared to go.

BLITZER: You're not ready to talk about impeachment.

KENNEDY: I'm not, no.

BLITZER: Let's talk about, in the time we have left, which isn't a lot, the vice president, Dick Cheney he said on "Face the Nation" on March 19th, "I think we are going to succeed in Iraq. I think the evidence is overwhelming. I think Ted Kennedy's been wrong from the very beginning. He is the last man I'd go to for guidance in terms of how we should conduct U.S. national security policy."

I want you to respond to the vice president.

KENNEDY: Well, it's the vice president, is the one that has basically gotten it wrong. And that's what history is going to show. At the time that we had al Qaeda on the run in Afghanistan, at the time that we had Osama bin Laden on the run in Afghanistan, it was the vice president as a principal advisor to the vice president that diverted the focus and attention on the battle in the war on terror from Afghanistan and al Qaeda into Iraq.

He was wrong about the weapons of mass destruction in Iraq. He was wrong about the al Qaeda connection in Iraq, he was wrong about Americans being accepted as liberators in Iraq. He was wrong about the Iraqis being able to pay for all of their reconstruction in Iraq, and he is wrong when he said, just a few weeks ago, that the Iraqi war was in its last throes. He has been wrong, wrong, wrong, wrong. This isn't just myself, it's recognized by the American people.

BLITZER: Would you agree with the "Los Angeles Times" editorial that came out in recent days suggesting that he resign given that record?

KENNEDY: Well, what I'm interested in is a change of policy. It starts at the top, it starts with President Bush. He ought to change the policy. We need new leadership in the Department of Defense, we need new direction, that's going to be able to bring American servicemen home now, this year, American servicemen home from Iraq, bring them home with honor.

BLITZER: We only have minute left. You're going to - you've said you are going to support John Kerry if he wants to run for president once again. What would he bring that Senator Clinton, for example, wouldn't bring?

KENNEDY: Well, I'm not against any of the other candidates. I know, at least, the ones that have been talked about, and I have respect for them, and I'm sure they would be -- do a much better job than we are having done at the present time. I do know John. I have known him since the time of the Vietnam War.

I understand his commitments, and I believe that he can. He's learned from the last campaign. I think he would be a good candidate, and I think he would be a good president.

BLITZER: The book is entitled "America Back on Track." Senator Edward M. Kennedy, as usual, thanks very much for joining us.

KENNEDY: Good to be with you. Thank you, Wolf.

(END VIDEOTAPE)

BLITZER: And Lou Dobbs is getting ready for his program that begins right at the top of the hour. Lou, tell our viewers what you are you working on.

LOU DOBBS, CNN ANCHOR: Wolf, coming up at 6:00 p.m. Eastern right here on CNN, President Bush with a 32 percent approval rating appears intent of defying the will of a quarter of a billion Americans. The president still push a guest worker amnesty worker program, doing nothing to secure our borders. We will have that special report.

And tonight I'll be talking with a whistleblower who says that the agency that would oversee any guest worker program and amnesty is corrupt in every quarter. And he says he's being persecuted by the FBI. He's our special guest.

And when is enough enough? Gasoline prices are through the roof. Wages are falling the war in Iraq is going badly. Three of the country's top radio talk show hosts join me to give us their views those of their listeners. Please join us for all of the and a great deal more at the top of the hour. We hope you'll be with us. Wolf, back to you.

BLITZER: We always are, Lou. Thanks very much for that.

Up ahead here in THE SITUATION ROOM, new tough talk between the U.S. and Iran as nuclear tensions tick up another notch. CNN's Aneesh Raman, one of the few western journalists inside Iran. We'll have the latest. And coming up at 7:00 p.m. Eastern hour, a presidential portrait. Through the eyes of our own Jeanne Moos. Her take on the Clintons on canvas. Stay with us.

(COMMERCIAL BREAK)

BLITZER: The United States traded words with Tehran once again today about Iran's nuclear ambitions. The secretary of state Condoleezza Rice saying Iran is only isolating itself further from the rest of the world. But Iranian leaders have been making a few choice comments of their own. CNN's Aneesh Raman is one of the only American journalists inside Iran right now -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Wolf, a strong message from Iran that if the world finds a nuclear situation untenable with Iran enriching uranium, things could get worse.

Iran top nuclear negotiator this morning said that if the U.N. levies sanctions of any kind against Iran for its peaceful civilian nuclear program, as the government describes it, then Iran will cease all ties with the UN's nuclear watchdog, the IAEA and the nuclear negotiator warned that if any military strikes were carried out against Iran the country would continue its nuclear program, but do so in secret.

Now, this defiance is rooted in strong national pride around this peaceful civilian nuclear program. Iran says it is its right to have such a program, and there is no evidence that suggests it is trying to build a nuclear weapon. Something that has been raised as a concern by the West and especially by the United States.

But ahead of that Friday deadline, it seems that Iran has decided this nuclear program is irreversible, because it is peaceful civilian program that is in its right to have, and the only thing on the table really in terms of a deal would be allowing inspectors here to verify that Iran isn't deviating off that path towards a nuclear weapon.

Whether or not that will play well with the U.N. countries has yet to be seen, but Iran, solidifying its stance ahead of that deadline -- Wolf.

BLITZER: Aneesh, thanks.

Up next, is it a smart strategy for some Democrats to call for the impeachment of President Bush? Jack Cafferty with your emails. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Jack in New York. Jack?

CAFFERTY: Thanks, Wolf. There's a resolution pending in Illinois' Democratic led legislature that calls on that states general assembly to submit charges to the U.S. House of Representative so it could begin impeachment proceedings against President Bush. And it's not the only place that's going on. There are similar actions pending in California and Vermont. The question is is it a smart strategy for Democrats to call for the impeachment of President Bush?

Cathy in Northwood, Ohio, writes, "Impeachment of a president shouldn't be a strategy and it shouldn't be just for Democrats. It should be a question of holding anyone, even the president, accountable for the choices that they make."

Ben in Bloomington, Indiana. "It might not be the best strategy because it could unite the Republicans in November, but it's the right thing to do. Impeachment isn't supposed to be about sex, but about hurting the country the president was elected to protect."

Hank, in Jacksonville, North Carolina. "No, Jack, I despise Bush more than most people but we don't need another all-consuming investigation of a president. I am convinced our country was irrevocably harmed by the investigations of President Clinton and I don't want to see our Congress twisted up over Bush's moronic actions. We have too much business on the table to waste time on such matters."

Michael in West Hollywood, California. "When the Democrats or the Republicans have the 'smoking guns', and it will take more than one, then it'll be a smart strategy. Do they have overwhelming evidence? I don't believe so, at least not yet."

And Glenda in Peoria, Arizona. "The Democratic Party is no better than the Republicans. Down with both of them. Reelect no one. Throw the bums out. I plan to vote for Lou Dobbs for president."

BLITZER: Let's tell Glenda in Peoria, Lou Dobbs, categorically not running for president. He says so himself and hell of chance to tell our viewers some more. That's coming up right at the top of the hour.

We're here weekday afternoons 4:00 to 6:00 p.m. Eastern, 7:00 p.m. Eastern as well. Let's go up to New York. Lou Dobbs standing by -- Lou.

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