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The Situation Room

President Bush Announces 4-Point Plan Aimed at Easing High Gas Prices; Terror on Tape

Aired April 25, 2006 - 19:00   ET

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

WOLF BLITZER, CNN ANCHOR: And to our viewers, you're 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 tonight's top stories.

Happening now, it's 7:00 p.m. in Washington. President Bush announces measures to ease America's pain at the pump, saying, "Every little bit helps." But will diverting fuel from emergency reserves and vowing to go after price gougers really help?

Can Democrats take advantage of the president's problems? Will a big-city Republican run for higher office? I'll speak with Senator Ted Kennedy and with New York Mayor Michael Bloomberg.

And they've been through a lot, but the Clintons will hang together in a museum. Now that their portraits have been unveiled, everyone is an art critic, including our own Jeanne Moos.

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

Tonight, President Bush has a message for oil companies. He says price gouging won't be tolerated.

Mr. Bush took new action today in hopes of easing soaring gas costs and easing the political fallout for Republicans. Crude oil prices fell slightly after the president's announcement. But will consumers see any change at the pump?

Our congressional correspondent, Andrea Koppel, is standing by with the reaction from Democrats.

Let's go to our White House correspondent, Suzanne Malveaux, first, for the latest on the president's new energy plan -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, President Bush's plan, his goal essentially is to reduce U.S. dependency on Middle Eastern oil by 75 percent over the next 20 years. President Bush trying to frame the debate as one of an issue of economics, but also national security.

(BEGIN VIDEOTAPE)

MALVEAUX (voice over): As gas prices go up, the president's approval numbers go down. But don't blame him. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And the prices that people are paying at the gas pumps reflect our addiction to oil.

MALVEAUX: That so-called addiction is fueling consumer frustration at the pumps and Republican fears that they'll be paying for it in the midterm elections. Facing increased political pressure to do something, President Bush unveiled his four-point plan.

First, Mr. Bush ordered an investigation into whether energy companies are unfairly manipulating gas prices.

BUSH: The first thing is to make sure that the American consumers are treated fairly at the gas pump.

MALVEAUX: While the administration was unable to cite any evidence of price gouging now, it did investigate instances shortly after Hurricane Katrina with mixed results.

DANIEL LASHOF, NATURAL RESOURCES DEF. COUN.: There was a lot of hand-wringing about price gouging at that time, and, again, after the hearings were over, everybody went back to business as usual.

MALVEAUX: Second, Mr. Bush pledged to boost the supply of U.S. crude oil and gasoline by temporarily suspending deposits into the country's strategic oil reserve.

BUSH: So, by deferring deposits until the fall, we'll leave a little more oil on the market. Every little bit helps.

MALVEAUX: But energy analysts say that's not likely to lower gas prices.

LASHOF: It is something within the president's jurisdiction, and I think it's largely symbolic.

MALVEAUX: The president also made another push to open up the Arctic National Wildlife Refuge to oil drilling.

Third, the president is promoting greater fuel efficiency by urging Congress to extend tax credits for all who purchase hybrid or clean-diesel vehicles.

BUSH: Ethanol's good for the whole country.

MALVEAUX: And fourth, Mr. Bush is encouraging investment in alternative sources of energy, like ethanol, to wean Americans off of foreign oil. But that's considered a long ways off to resolving the pain at the pump.

LASHOF: I don't think there's anything in the president's plan that will have a short-term impact on gas prices.

(END VIDEOTAPE)

MALVEAUX: And Wolf, what is not in his plan is a comprehensive strategy for Americans to conserve. There's some Democrats and critics taking a dig at the White House this evening, saying that certainly is not surprising considering you have two former oil men in the White House -- Wolf.

BLITZER: Lots of speculation, lots of buzz out there, as you know, Suzanne, that perhaps even as early as tomorrow the president is going to announce that Tony Snow, the FOX News anchor, the radio talk show host, will be named the White House press secretary.

What are you hearing?

MALVEAUX: Well, certainly sources familiar with deliberations with Tony Snow say that is highly expected, that simply he was waiting for the final clean bill of health, so far, so good, and that there is an announcement that is expected very shortly -- Wolf.

BLITZER: Suzanne, thanks very much.

Let's get reaction to the president's energy proposals from our congressional correspondent, Andrea Koppel.

What are they saying on the Hill, Andrea?

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Well, Wolf, one day after Republicans sought to minimize the political fallout over higher prices at the pumps, Democrats put the pedal to the metal as they sought to turn up the heat on Republicans.

(BEGIN VIDEOTAPE)

SEN. FRANK LAUTENBERG (D), NEW JERSEY: The alarm is there because the American people are so angry they can't stand it. It's an imposition on every family in this country.

KOPPEL (voice-over): Just back from recess, Democrats rushed to tap into growing outrage over rising gas prices. And with one press conference after another, three in the Senate, one in the House, launched a blitzkrieg, seeking to put Mr. Bush and Republicans on the defensive.

REP. NANCY PELOSI (D-CA), MINORITY LEADER: We have two oil men in the White House. The logical follow-up for that is three dollar a gallon gasoline. There is no accident. It is a cause and effect.

SEN. CHARLES SCHUMER (D), NEW YORK: There are five words missing from the president's speech today. Get tough on big oil. The president refuses to do that.

KOPPEL: But Democratic Senator Bob Menendez says he is and called on Congress to repeal over $6 billion in tax breaks to big oil. Menendez proposed using that money to fund a federal gas tax holiday to temporarily eliminate the federal tax on gas and diesel for two months, reducing the cost of gas by about 18 cent as gallon. Democrats say that would offer Americans about $100 million a day in relief.

SEN. DIANE FEINSTEIN (D), CALIFORNIA: These windfall profits taking place today are inexcusable when a consumer has to pay 90 to $100 to fill their tank. Absolutely inexcusable.

KOPPEL: Republicans responded there is no quick fix.

SEN. BILL FRIST (R), MAJORITY LEADER: We need to help them find relief. We know there is no single magic bullet.

KOPPEL: But seven months away from midterm elections and with President Bush at his lowest approval ratings yet, the Democrats' message, put them in the driver's seat.

LAUTENBERG: They can't manage the war. They can't manage gas prices. They can't manage the environment. They can't do any of the things that leadership is supposed to do.

(END VIDEOTAPE)

KOPPEL: And considering it is an election season, don't expect the Democrats to let go of this issue just yet. Tomorrow, we can expect, according to Democratic aides both in the House and the Senate, senators and congressman to go out and beat the drum again. In fact, tomorrow, Wolf, some senators are going to gather at a local gas station to basically say that they share the concerns and the anxieties of the American people -- Wolf.

BLITZER: Andrea Koppel and Suzanne Malveaux, part of the best, the best political team on television.

Thanks to both of you.

Can Democrats make gas prices a presidential problem? Do they have a better idea for easing American's pain at the pump? My one-on- one interview with Senator Ted Kennedy, that's coming up this hour.

And in our CNN "Security Watch" today, the most wanted man in Iraq released a chilling videotape with an extremely dangerous message for American troops.

Our senior international correspondent, Nic Robertson, standing by live in London -- Nic.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Wolf, a message from Abu Musab al-Zarqawi today aimed at President Bush telling him not to lie to the American people about what's happening in Iraq. The message predominantly for Iraqis as he said that the United States is beginning to lose its resolve in that war. He was appealing to Iraqis, though.

(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 recorded this message, he says, on Friday last week, right before the Iraqi parliament nominated a new prime minister. Whether or not that's true it's not clear. But what is very, very clear from this, Zarqawi feels comfortable enough that he can come out and make a video like this, and that he feels it's important enough for him to do it, to try and run, if you will, for the leadership of the Sunnis in Iraq -- Wolf.

BLITZER: And sophisticated enough to post it on the World Wide Web.

Thanks very much, Nic, in London.

Let's go to New York. Jack Cafferty with "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Wolf, Tony Snow, who also happens to be an anchor over there at the "F" word network, is likely to take the job as White House press secretary. President Bush can do worse -- not a bad guy. But it might be too late.

Sources close to the White House say they expect Snow to announce his decision within the next few days, maybe as early as tomorrow.

Snow joined FOX News in 1996. Before that, he was a nationally syndicated columnist with "The Detroit News," a columnist for "USA Today," and he worked for the editorial pages of various newspapers.

The conservative radio talk show host also worked as a speechwriter for the first President Bush in 1991. I wonder if he wrote that line about "Read my lips... no new taxes"?

Here's the question: How would you describe the relationship between politics and the media?

E-mail us at caffertyfile@CNN.com or go to CNN.com/caffertyfile.

This will be a step in the right direction, I think, Wolf.

BLITZER: Yes, Tony Snow, I've known him for a long time.

CAFFERTY: Good guy.

BLITZER: He used to be on "LATE EDITION." He used to be one of the panelists before the FOX News channel even started. He was one of our regulars. He's a good guy indeed, Jack.

Thanks very much.

CAFFERTY: Yes.

BLITZER: Coming up, a breaking development in the war on terror. We're going to have that story for you.

Also, the immigration debate turns ugly. Death threats for the mayor of Los Angeles and California's lieutenant governor. Now Arnold Schwarzenegger is voicing concern and taking some action. We'll tell you what's going on.

And New York Mayor Michael Bloomberg, could he be laying the groundwork for a presidential bid? You're going to hear what his plans are. That's coming up as well.

And later, a tabloid mocks Bill Clinton's official presidential portrait. Our Jeanne Moos has some fun with the story.

All that coming up ahead right here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There's a development happening out in California involving the war against terror. Let's bring in our Zain Verjee. She's following it from the CNN global headquarters -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, this just coming into CNN and to THE SITUATION ROOM. There's been a verdict in the so-called Lodi terror trial of a California man accused of attending an al Qaeda training camp in Pakistan.

CNN has confirmed that a federal jury in Sacramento has found 23- year-old Hamid Hayat guilty of supporting terrorists by attending that al Qaeda camp three years ago in Pakistan. He was also found guilty of lying to the FBI about it.

His verdict came just hours after a mistrial in the case against his father. A separate jury deadlocked on charges that Umer Hayat also lied to the FBI. Both men are U.S. citizens -- Wolf. BLITZER: Zain, thanks. We'll get back to you for some other news shortly.

The Senate here in Washington may be heading for a breakthrough on immigration reform. Lawmakers from both sides of the aisle were optimistic after a White House meeting with President Bush late this afternoon. That was described as frank and open. The president outlined what he said both he and the senators are looking for.

(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'll 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)

BLITZER: Meanwhile, the immigration debate is taking a very ugly turn out in California.

CNN's Chris Lawrence is joining us live from Los Angeles with these scary details -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Wolf, we just spoke with the lieutenant governor's office, and he told us Lieutenant Governor Cruz Bustamante just received another hate letter today. This time, it started by asking him, "What is it you don't understand about the word 'illegal'?" And it ended by calling him a name we can't repeat 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: Several other politicians of Hispanic background have also been targeted, including the chairman of the Democratic Party here in California and the speaker of the state assembly -- Wolf.

BLITZER: Chris, thanks, out in L.A.

And still to come tonight in THE SITUATION ROOM, the Republicans' worst nightmare: Democrats in control of Congress taking legal aim, including subpoena power at President Bush. How likely is that scenario?

Also, Senator Ted Kennedy blasting the president on gas prices and on Iraq. And New York City's Michael Bloomberg, he's weighing in on immigration and more. Find out also if he plans on running for the White House.

They're both in THE SITUATION ROOM.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Tonight, President Bush's political problems may be weighing more heavily than ever on Republicans in Congress, especially those up for reelection in November.

Our Brian Todd is looking into the possibility that Capitol Hill could be turned upside down at that point -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, there's a window here with President Bush's poll numbers at an all-time low, a window for Democrats to seize momentum and look toward retaking one, possibly both houses of Congress. (BEGIN VIDEOTAPE)

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

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: If this is a 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 could mean an onslaught of investigations that might drive an already embattled White House to distraction.

RON BROWNSTEIN, "LA TIMES": 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 be become chairman of the Judiciary Committee. He has already started to explore whether there are grounds to launch impeachment proceedings against the president. And if he becomes chairman of the Judiciary Committee, he could have the power to lead a Democratic charge on his 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 that 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 could very likely delve into the lapses of intelligence leading up to the Iraq war, which a lot of Americans are still puzzled by and impatient with.

(END VIDEOTAPE)

TODD: 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: Brian Todd, part of the best political team on television.

Thanks very much.

Just ahead, my one-on-one interview with one of the Senate's senior Democrats. That would be Ted Kennedy. He joins us in THE SITUATION ROOM to talk about gas prices, the war in Iraq, even impeachment.

Plus, New York Mayor Michael Bloomberg, will he run for president in 2008? We'll hear what his plans are.

All that coming up.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. I'm Wolf Blitzer in Washington.

Let's get -- get some more on our top story now. As President Bush promises some help for Americans trying to cope with the soaring gas prices, Democrats have been turning up the heat on the president.

Earlier, I spoke with 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 tax on the big gas companies, oil companies like ExxonMobil. Is that something that you would support 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: Well, 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 costs at the pump?

KENNEDY: Well, first of all we are talking about greed on this. And we are talking about fairness on this. And we can, under the tax code, we can have a refundable credit that can go to basically 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 at 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.

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 even lower. Unless 20s. Do you believe that Democrats will be the majority in the Senate after November?

KENNEDY: Easy question. The answer's 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 the subpoena power. Now listen to this. When we had a Democratic administration, Republican control of the House of Representatives, they had over 1100 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 are being given with regards to Iraq, Halliburton, and also with regards to Katrina. The great waste and abuse that we saw that took place. And the American people don't have a full understanding. I think they will at some time. But they shouldn't 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 that the president had violated the law.

BLITZER: We're talking about the warrantless surveillance.

KENNEDY: 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 a legislation can be prepared. So it's a shared responsibility with the president and the Congress, the way that the FISA law works.

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. If the administration is going to stonewall that efforts, then I think you could reach a different conclusion. That's --

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

KENNEDY: That's so.

BLITZER: OK, 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 interest. 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'd 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. There was not activity of al Qaeda in Iraq. There's no question it's a training ground for Iraq. And I don't think that because of the Iraq war we are safer or more secure today than we were prior to the time when Saddam Hussein ruled there.

So that is 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. We are certainly going to do it in the congressional and senatorial elections and the presidential elections.

BLITZER: So you are not ready to talk about impeachment now.

KENNEDY: 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's 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 is 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 we had Osama bin Laden on the run in Afghanistan, it was the vice president, as the principal adviser of the president, that diverted the focus of attention on the battle of 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. 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 he resign given that record?

KENNEDY: Well, what I'm interested in is the 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 a minute left. You said you are going to support John Kerry if he wants a 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. At least the ones that have been talked about. I have respect for them and I'm sure they would do a much better job than we are having done at the present time. I do know John. I've known him since the time of the Vietnam War. I understand his commitments and I believe he can, he's learned from the last campaign. I think he'd be a good candidate. And I think he'd be a good president.

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

KENNEDY: Good to be with you. Thank you.

(END VIDEOTAPE)

BLITZER: Can consumers drive gas prices down by boycotting ExxonMobil gas stations across the country? That's the e-mail call to action that's spreading like wild fire all over the Internet. But would it work? Our Internet reporter Abbi Tatton is standing by with the latest.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, no it would not work. This is an e-mail chain that's going around and it's been going around for over five years. We've seen examples going back to 2001. This is what it looks like here. It's an urban legend saying ExxonMobil, boycott this chain until they drop their prices to $1.30.

Not so says snopes.com. This is a Web site that for over ten years has been debunking e-mail myths and urban legends. It is saying this is the number one e-mail circulating right now. But it is every single Spring. Every time that the prices go up these e-mails appear.

In case anyone is taking it seriously. ExxonMobil told us in a statement that we do not and could not control the market price of gas. And also economists are going online saying this simply could not happen. Wolf?

BLITZER: Thank you, Abbi. Up next. New York City Mayor Michael Bloomberg takes on CNN's Lou Dobbs on immigration. Plus -- I'll ask him if he plans to run for the White House in 2008.

And the Clintons on canvas. Our Jeanne Moos is there uniquely for the unveiling of two unconventional portraits. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Today in New York, Mayor Michael Bloomberg hosted other mayors in a gun summit. They discussed the issue of illegally- obtained guns and how to stop them from entering U.S. cities. The National Rifle Association said it wasn't a summit, but more like a P.R. stunt. A statement from the NRA effectively says that if the mayors were serious about combating crime, they'd help prosecute gun crimes. Yet the summit host says it's an issue all Americans should be deeply concerned about.

(BEGIN VIDEOTAPE)

BLITZER: Mr. Mayor, welcome to THE SITUATION ROOM.

MICHAEL BLOOMBERG, MAYOR, NEW YORK CITY: Thank you for having me.

BLITZER: You're a Republican, but I got to tell you, what you're doing today sounds very much like what a lot of Democrats would like to see happen, as far as illegal guns in this country are concerned. And I will throw out some statistics for you.

In 2004, guns-rights -- gun-rights organizations gave more than $1,100,000 to Republicans, 88 percent of the total. They only gave $160,000 to Democrats, 12 point of the total.

Are you crossing the partisan line when it comes to this issue?

BLOOMBERG: Wolf, there is nothing partisan about this.

This is an issue of guns on the streets of the cities of the United States, whether it's north, south, east, west, whether they have Democratic or Republican mayors, no matter what the ethnicity or the economic makeup of the city.

The truth of the matter is, the Second Amendment gives you the right to bear arms. And I don't have a problem with that. I don't have a problem with people that want to own weapons and hunt. But guns don't belong on the streets of our cities.

There are 30,000 people killed in the United States every year. That's 80 people a day. And they are killed whether they are Republican or Democrat. And that's what Congress has got to learn. That's what the White House has got to learn. There is nothing partisan about it. This is a question. It's the second biggest public health problem this country has.

BLITZER: I want to get to a couple other issues while I have you, Mr. Mayor, especially the sensitive issue of the president's meeting with Democrats and Republicans today on the issue of immigration.

You recently made it clear to our John King in an interview that there's no way the United States can get rid of all these illegal immigrants, 10, 12 million, how many there are.

BLOOMBERG: Nor do we want to.

BLITZER: Well, that provoked a response, that and some of the other comments you made, from our own Lou Dobbs.

I want you to listen what he said directly about you. And I want to get your response. Listen to what Lou Dobbs said.

(BEGIN VIDEO CLIP)

LOU DOBBS, CNN ANCHOR: Mayor Bloomberg may live in New York City and have to wrestle with consequences within that city. It's a great city, with great people. But this is a broad nation. And 280 million middle-class Americans, working men and women, in this country, Bloomberg is telling them to go to hell, not me.

(END VIDEO CLIP)

BLOOMBERG: Well...

BLITZER: Those are pretty strong words.

BLOOMBERG: Well, I have known Lou for a long time. And, sometimes, his rhetoric sort of gets ahead of what he's thinking, I think, the only explanation.

Look, we have 12 million undocumented in this country that perform jobs nobody else will. And, even if you want to get rid of them, you cannot. That's more people than we have in the state of Illinois. So, first and foremost, let's get serious.

They are here, and they are going to stay here. And there is no ways that we can remove them. We should have had control of our borders before. We didn't. This is the penalty that we're paying for misguided legislation, the Simpson-Rodino bill in 1986, 20 years ago.

The second thing is, no country exists today without control of its borders. We have to get control of our borders, in a meaningful way, where we really do decide who comes into this country or not.

Number three, we have got to stop the charade that companies can't hire illegal aliens, but Congress passed laws that prevent them from really checking to see whether the documents they have are legit or not. This is a sad joke, the way that Congress passed that legislation.

And, fourth, we need a steady stream of immigrants. We need agricultural workers, which is what people are talking about coming across the Mexican borders. We need scientists. We need doctors. We need the people that -- who are going to build the future of this country. The only reason America is the greatest country in the world is because, from the pilgrims on through today, we have been the place where the best...

BLITZER: Well...

BLOOMBERG: ... and the brightest come to work and to add to our culture.

BLITZER: ... in defense of Lou, he supports immigration, he says, legal immigration. It's illegal immigration that he opposes.

BLOOMBERG: I couldn't agree more. So, let's pass some laws, that the country decides who comes here and how many. I think that's appropriate. Get control of the border, so that we can enforce it.

But one thing I guess Lou and I probably would disagree on, he has this misguided idea that you can take 12 million people who are here today and get them to leave. They have children here who are American citizens. They have mortgages. Banks love to loan to people who want to be here and are hardworking. They make -- they fill jobs that nobody else is willing to take.

We just have them here.

BLITZER: All right.

BLOOMBERG: And we're going to keep them.

BLITZER: One final question, because we're out of time: In May of '03, your approval was at 32 percent. It's now, three years later, at 73 percent. The president's...

BLOOMBERG: My mother is pleased.

BLITZER: The president's job approval in our CNN poll is at 32 percent right now.

I guess the bottom-line question -- there has been a lot of speculation in the New York press about you seeking higher office down the road. I will put it bluntly. Do you want to be president of the United States?

BLOOMBERG: Wolf, I will put it bluntly. I have the best job in government. I have the best job right now I have ever had in my life.

I plan to stay in this job and fill out the four-year term that I was elected to, and do everything I can to help the people of New York, who hired me to do the job. And if I can be supportive for the president, regardless of who he is or which party, or she is, if I can be supportive of Congress, regardless of which party, anything to make the country that gave my grandparents the opportunity to come here, I'm going to do exactly that.

But the answer to your question is, I am mayor of the city of New York through the year 2009.

BLITZER: I guess you're not going to run for president in 2008.

(LAUGHTER)

BLITZER: Mr. Mayor, thanks very much for joining us.

BLOOMBERG: You're welcome.

(END VIDEOTAPE)

BLITZER: And still to come, the Clintons framed. Jeanne Moos on Bill and Hillary Clinton's high art debut. We're going to show you what's hanging on the walls right now.

Plus a FOX News anchor just might take the job of White House press secretary. Jack Cafferty is taking your e-mail on the fine line between the media and politics. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Check it out. The bottom line of the markets, the Dow, the Nasdaq, the S&P all were down as investors kept a nervous eye on high oil prices.

If a picture is worth a thousand words, two portraits of Bill and Hillary Clinton are worth Jeanne Moos' attention.

(END VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Take it off, President Clinton. Take it all off. The latest edition to the national portrait gallery is not your average presidential portrait pose.

UNIDENTIFIED MALE: He looks sort of slovenly.

UNIDENTIFIED MALE: He looks a little gay.

UNIDENTIFIED FEMALE: He looks just like him. Very strong and powerful.

MOOS: But leave it to The New York Post to frame its front page with two words. And they aren't well done.

(on camera): They called him a hubba bubba.

(voice-over) All because of a hand on the hip pose by artist Nelson Shanks.

UNIDENTIFIED MALE: I can do that.

MOOS (on camera): Let's see it. Exactly. At the unveiling, there was no such posturing. Bill's arm was demurely around Hillary. He spoke about how he thought of portraits growing up.

BILL CLINTON, FORMER U.S. PRESIDENT: Portraits were pictures of dead people.

MOOS: Don't tell that to tourists having their portraits done. Hillary's portrait was likewise unveiled.

UNIDENTIFIED MALE: She looks wonderful. I mean -- Mrs. Clinton is just like, she's it.

MOOS (voice-over): This it was done by artist Jinny Stanford in the style of a renaissance painting. Hillary looked like a Botticelli.

CLINTON: I wound up with a wife straight out of the renaissance. It is so beautiful.

MOOS: By the way both paintings were paid for by Clinton supporters, not with taxpayer dollars. The painter of Bill's portrait says he wanted to show informality.

UNIDENTIFIED MALE: Some gang signal here? Like The Bloods?

MOOS: All of this got us thinking about President Nixon, allegedly walking around the White House, talking to presidential portraits. His son in-laws call that an absurd accusation. But there he is talking to JFK in the movie "Nixon."

ANTHONY HOPKINS, ACTOR: When they look at you, they see what they want to be. And when they look at me, they see what they are.

MOOS: And when they look at this some are tongue tied.

UNIDENTIFIED FEMALE: There's no reason for The Post to say that about him.

MOOS (on camera): Although you know, ma'am. Some people think it's a compliment. Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: Let's find out what's coming up at the top of the hour. Paula is standing by. You can't top that, Paula.

PAULA ZAHN, CNN ANCHOR: See, Wolf. If you lived here, you would be treated to those headlines every day. Of course you are in Washington as well.

BLITZER: It is much more sedate here.

ZAHN: All right. We are going to tell you what's coming up in just about six minutes from now. What the heck is going on in America's schools? Again today there is word that a student has been arrested and some kind of plot has been uncovered. There have been at least a half dozen similar stories so far this month. How can we make sure our children are safe at school? Also, get a load of a new video game we found. What does it have to do with the big fight over illegal immigration? Well there's tremendous controversy surrounding this game and what it might inspire people to do. And you'll hear all of that close to six minutes from now. By now five minutes and 31 seconds.

BLITZER: But who's counting? Thanks. We'll see you then. Paula Zahn coming up.

Still ahead. A FOX News anchor considers taking the job of White House press secretary. What do you think is the relationship between politics and the media? Jack Cafferty going through your e-mail.

(COMMERCIAL BREAK)

BLITZER: Let's check in with Jack with "The Cafferty File."

CAFFERTY: Tony Snow, Wolf who labors over there at FOX News, he also does a radio talk show and in fact isn't a bad guy, is likely to take the job as White House press secretary. Might even be announced by tomorrow. Sources say that they expect Snow to announce his decision within days. The question we ask tonight is how would you describe the relationship between politics and the media?

Rick writes in Colton, California, "Incestuous. Politics breeds BS and the media lives on BS. If you got rid of all the politicians, the media would most likely starve to death for lack of fodder."

Al in Brick, New Jersey. "Jack, the politicians manage the media, especially FOX News. This will not be a change at all for Tony Snow. He'll still have the same boss either way."

Christy in Clarksburg, West Virginia. "I think it's a sycophantic, cocktail weenie circuit echo chamber most of the time, where the truth takes a back seat to maintaining connections. In other words, the public gets only what the media and the politicians think we need to know, or what makes them money. Truth is irrelevant."

Phil in concord, California. "Well, he'll do a better job of lying than McClellan because he's had so much experience doing it on FOX News." That's cruel.

Lonnie in Baltimore. "The relationship between the media and politicians is like a high school prom gone wrong. It's a dance of two entities, both of whom think they're leading their partner, but neither or whom knows what dance they're doing."

And finally Carol in Murray, Kentucky. "It occurs to me that if you had been a suck-up cheerleader for the administration like Tony Snow, the White House might be considering you for press secretary."

BLITZER: The chances, Jack, of the White House considering you for press secretary, I would say, slim.

CAFFERTY: Or none. I wouldn't take the job anyway. I'd have to take a pay cut.

BLITZER: I wouldn't take it either, but it's a tough job and I wish Tony Snow only the best if he does. Jack, thanks very much. See you tomorrow. Now to New York and Paula.

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