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The Situation Room

Evacuation Plan in New Orleans; States Vs. SUVs; Bush Not Making His Case; Clark Kent Ervin Interview; Top U.S. diplomat Predicts United Nations Will Soon Pass Resolution Ordering Iran To Suspend Nuclear Program; Mexico May Soon Legalize Drugs

Aired May 02, 2006 - 17:00   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, it's 4:00 p.m. in New Orleans. With the next hurricane season only four weeks away, the mayor announces a new evacuation plan. Does this one also involve putting thousands of people into the Superdome?

States and cities sue the Bush administration, demanding that it get tougher on gas-guzzlers. Are they just picking on pickup trucks and SUVs, or would tougher mileage standards really make a difference?

And it's early morning in Iran. As Iranians rally around their nuclear program, more threats from their leaders against the United States and Israel. We'll take you inside Iran for a rare look.

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

We begin with some new developments out of New Orleans. With the new hurricane season just around the corner, the mayor, Ray Nagin, today unveiled a new evacuation strategy that will rely more on mass transit for the mass movement of people and will not send people to the mass shelters where thousands were stranded during Hurricane Katrina.

Our Gulf Coast correspondent, Susan Roesgen, is joining us now live from New Orleans with details -- Susan.

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Wolf, I'm in a neighborhood that is so typical of what happened here during Hurricane Katrina. Two cousins, two guys in their 20s, lived in this house here, but they couldn't evacuate because they couldn't get that Chevy Blazer to run.

The engine was broken down; they were out here working on it. Already, there was two feet of water in the street already and rising. So, they were forced back into the house, eventually up into the attack, and finally, Wolf, out onto the roof, where they used a can of spray point to spell out "SOS".

(BEGIN VIDEOTAPE)

ROESGEN (voice-over): Before Katrina, there was no evacuation plan for people who didn't have transportation out of the city. This year, Mayor Ray Nagin says the city will use buses and possibly Amtrak trains to move people out.

MAYOR RAY NAGIN (D), NEW ORLEANS: A mandatory evacuation will be called in the future as we know the threats that are coming. We have direct lines into the hurricane center, as well as coordination with the state and federal levels to make sure that we give our citizens enough time to reach safety.

ROESGEN: What's not part of the new plan is the Superdome. It will not be opened again as a shelter. Instead, evacuees will be bussed to a shelter outside the city.

New Orleans police plan to work with the National Guard, staying behind to save lives if necessary during the storm, while protecting property against looters afterward. The bottom line is, city leaders want everyone out 36 hours before a hurricane hits. And the mayor says those who choose to stay will stay at their own risk.

NAGIN: They're on their own. Mandatory, I mean, we're dealing with adults. So, if you decide to disobey a mandatory evacuation and leave, you are confining yourself to your home during an emergency, and that's the -- and if you come outside and violate the curfew, you will be arrested.

(END VIDEOTAPE)

ROESGEN: Now, Wolf, the two guys in this house behind me were able to finally be rescued by a Coast Guard helicopter. They say they welcome the city's new evacuation plan, but there is a whiff of politics, as so much else is politics in New Orleans in this plan. Mayor Nagin, as you know, Wolf, is running for reelection, and he said today at the news conference as he announced the new plan that it would be foolish for the city to elect somebody else and try to give these plans to somebody else so close to the start of hurricane season.

BLITZER: Any reaction from his opponent, Mitch Landrieu, the lieutenant governor, who wants to be mayor of New Orleans?

ROESGEN: Wolf, I'm sure there will be. Before the plan came out, Lieutenant Governor Mitch Landrieu said that he believes there should be better city and state cooperation. I haven't yet heard yet what his response is to the plan now that it's out.

BLITZER: Susan Roesgen with that good report.

Thanks very much for joining us.

And if you, our viewers, would like to see the report for yourself, there's a way you can read it right now.

Our Internet reporter, Jacki Schechner, standing by with details -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, it's been put online at the City of New Orleans' Web site, the 2006 emergency preparedness plan. There are four parts of this.

There's the assisted evacuation plan for people who cannot evacuation themselves, a full flowchart of exactly how that might happen. Two other parts of this report, an emergency plan for pets and for manufactured homes. All specific documents that you can take a look at yourself at the City of New Orleans Web site -- Wolf.

BLITZER: Jacki, thank you.

Just after Hurricane Katrina, gas prices soared after oil facilities on the Gulf Coast were hit hard. Today, the nation is seeing similar high prices.

Right now, AAA says the average cost of a gallon of regular is $2.92. That's up 35 cents from only a month ago.

Today, the CEO of ExxonMobil was on Capitol Hill. In an interview you'll see only here on CNN, he was asked if there's anything his company can do to lower gas prices.

(BEGIN VIDEO CLIP)

REX TILLERSON, CEO, EXXONMOBIL: Well, the things we are doing. We're investing heavily $20 billion a year over the next five years to develop new supply. Developing supply from all over the world, including a lot of investment in this country in some new developments. And, you know, all of that is directed to trying to address the tightness in the supply situation.

I think on the other side we just have to ask people to make sure they're using energy wisely. Be efficient with it. Don't waste it.

(END VIDEO CLIP)

BLITZER: Exxon is the world's largest publicly traded oil company. It recently reported its first quarter profit rose to $8.4 billion. That's in the first quarter.

The high gas prices are crippling to many Americans, but might there be a way to lower them by targeting the mileage rules on some of those gas-guzzling SUVs?

Our Mary Snow is in New York. She's been watching this story -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, a group of states led by California filed a lawsuit today that takes aim at fuel economy standards. They say government rules failed to take into account the effects on the environment and global warming, and they stress that rising gas prices add urgency to their fight.

(BEGIN VIDEOTAPE) SNOW (voice-over): They are the bane of environmentalists. Now sports utility vehicles, or SUVs, are the main target of a legal showdown. Representatives for 10 states and two cities are suing the Bush administration, accusing it of not being tough enough on automakers when it comes to mileage standards for SUVs.

RICHARD BLUMENTHAL, CONNECTICUT ATTORNEY GENERAL: These regulations are really a gift to the automobile industry. They're a sham.

SNOW: In Charlotte, North Carolina, today, Transportation Secretary Norman Mineta touted the new standards that are the subject of the suit.

NORMAN MINETA, TRANSPORTATION SECRETARY: In March, I announced the president's tough new mileage requirements for light trucks, minivans and SUV, and that was the second in just three years.

SNOW: Last year, the president announced new fuel economy standards.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: When these reasonable increases in mileage standards take full effect, they will save American drivers about 340,000 barrels of gasoline a day.

SNOW: Some of those new standards, for example, for the largest SUVs, by the year 2011, they must, on average, get 24 miles to the gallon. Critics say it's not good enough and blame the administration for not pushing automakers to use better technology.

BRENDAN BELL, SIERRA CLUB: The technology exists to make all vehicles, from cars, to SUVs, to light trucks, average 40 miles per gallon within 10 years. And taking that step would save the average driver about $500 per year at the gas pump and it would save four million barrels of oil per day.

SNOW: Automakers say hundreds of factors, including safety, are taken into account when determining mileage standards.

A spokesman for General Motors took aim at the claims that the auto industry persuaded the Bush administration to go easy on automakers, saying, "The idea that these were a gift is clearly coming from people who don't have a full grasp of the complexity of the dynamics involved here."

(END VIDEOTAPE)

SNOW: The money may tell another part of the story, though. Rising gas prices are taking a toll of sales of SUVs and trucks as consumers look for more fuel efficient cars. And today, for example, Ford reported a 15 percent drop in light truck sales in the past month -- Wolf.

BLITZER: Perhaps the marketplace will work on this one a little bit to a little -- small degree. Thanks very much, Mary, for that.

Betty Nguyen is joining us once again from the CNN Center in Atlanta with a closer look at some other stories making news.

Hi, Betty.

BETTY NGUYEN, CNN ANCHOR: Hi there, Wolf.

State and federal officials are holding hearings today and tomorrow on January's Sago coal mine disaster in West Virginia. And for the first time, those officials are hearing direct and sometimes desperate appeals from the family members of the 12 miners who died.

(BEGIN VIDEO CLIP)

PEGGY COHEN, DAUGHTER OF FRED G. "BEAR" WARE JR.: The one thing we must do is to make changes and make these mines safe for the other miners that continue to work. We must do something to prevent any more miners dying and their families having to endure this pain. This is awful pain. My heart just feels empty.

We hope that everything will be investigated thoroughly so we can get our answers. Please do not leave any stone unturned.

(END VIDEO CLIP)

NGUYEN: West Virginia Governor Joe Manchin noted that mine safety improvements have been implemented since the accident and promised that the miners will not have died in vain.

Federal investigators say it was probably ice on the wings that led to the 2004 crash that killed the son of NBC sports executive Dick Ebersol and two others. They say the pilot's decision to only inspect the wings visually may have been the fatal error.

Fourteen-year-old Teddy Ebersol, the pilot and a flight attendant died when the plane crashed shortly after takeoff from Montrose Airport in Telluride, Colorado. Several others, including Dick Ebersol and another son, survived that crash.

Well, just hours ago, the Iraqi Oil Ministry was in flames. Now investigators want to know if the fire was set on purpose. They will begin their investigation tomorrow. Firefighters extinguished the blaze in just a couple of hours. You see the smoke there. Several ministry offices were destroyed and there were no reports of any injuries.

The U.S. military says 10 insurgents were killed in a raid today at a suspected terrorist safe house. It says the assault team was looking for an al Qaeda terrorist leader in Iraq when they stormed the house in Balad. The military says three of the insurgents were wearing suicide vests -- Wolf.

BLITZER: Betty, thank you very much.

How low can he go? Two more surveys out today show the president in deep trouble with the public over Iraq.

In a "USA Today"-Gallup poll, 32 percent say they approve of the way the president is handling the situation in Iraq, 66 percent disapprove. A CBS News poll shows that only 30 percent approve of the way the president is handling the war, while 64 percent say they disapprove.

For more on the president's fall, let's turn to CNN Senior Analyst Jeff Greenfield -- Jeff.

JEFF GREENFIELD, CNN SR. ANALYST: Wolf, there's been much comment about the three years since the president gave his "Mission Accomplished" speech aboard that aircraft carrier, but there's a striking political lesson that I think has been overlooked.

It's not that the president hasn't been taking his case to the public. Indeed, he has done that repeatedly. What's happened, apparently, is that the public has stopped buying the message.

(BEGIN VIDEOTAPE)

GREENFIELD (voice-over): All through his second term, Mr. Bush has been using the bully pulpit of the presidency to argue his case for the war in Iraq...

BUSH: We will stay on the offense.

GREENFIELD: ... and for the broader war on terror. All the power of the White House has been brought to bear. The speeches have been carried live on cable news, have received major coverage in the press. And what has happened?

April 12, 2005, a speech to military families on terror. His job approval rating just before that speech is at 50 percent.

BUSH: Thank for being on the front line.

GREENFIELD: June of 2005, a visit to the National Counterterrorism Center, a speech to the nation from Ft. Bragg. By month's end, his job approval is at 45 percent.

Last November, the president visits Annapolis...

BUSH: On September the 11, 2001...

GREENFIELD: ... then Elmendorf Air Force Base to talk about terror and the war in Iraq. By year's end, his job approval is at 41 percent.

BUSH: Their aim is to seize power in Iraq.

GREENFIELD: So far this year, he's given six speeches on terror and Iraq, not counting the State of the Union. What has happened? He began the year at 43 percent job approval. In the latest CNN poll, he's hat 32 percent. And his ratings on the war in Iraq and on terror in general are now sharply negative.

What has happened? Put simply, it is that the power of the president, with all the attention that office commands, is no match for a steady stream of unsettling news. Every piece of good news, a referendum, an election, has been overshadowed by violence that has taken both Iraqi and American lives.

UNIDENTIFIED MALE: We should not just...

GREENFIELD: Moreover, much of the current wave of negative news has come not from traditional political foes but from retired generals. Most recently from former secretary of state Colin Powell, who said, yes, he had wanted more troops to secure Iraq.

(END VIDEOTAPE)

GREENFIELD: Every White House loves to argue that its best weapon is the president, connecting directly with the people. But all of the fanfare, the backdrops, the media attention, may wind up having less and less power the more the news from offstage appears to remain grim -- Wolf.

BLITZER: Thanks, Jeff Greenfield, part of the best political team on television,

CNN, America's campaign headquarters.

Jack Cafferty also part of that excellent team -- Jack.

JACK CAFFERTY, CNN ANCHOR: You know, just to follow up on what Jeff was talking about, part of the public's dissatisfaction with this war has to be, I would think, related to the -- to the fact that we were sold a bill of goods, that the reasons for going in there turned out to be fabricated, or at least in part.

The weapons of mass destruction and the rosy scenario that was painted by our leadership about how this thing was going to turn out, that, you know, we would have been home by now and it was all going to be settled, and this thing would be a bastion of democracy. I think there are some other things just than -- than the power of the presidency at play there, and I think the credibility of the people who took us to that war probably part of the problem.

School's out in Tennessee. Or at least it was for some kids there recently. The Rhea County school system gave 4,000 kids the day off last Friday and again yesterday because of the rising cost of diesel fuel.

The county is 34 miles long. The price of diesel a huge problem for all of the buses they've got to put on the roads to get these kids back and forth to school.

Tennessee Department of Education says the school closings were not authorized by the state, but officials had said earlier that extra snow days could be used if fuel prices rose. The school board chairman says the closing was justified. The district spent $14,000 on fuel in March of this year, compared to just $7,800 on fuel in March of last year.

Now, this isn't the first time schools have closed because of high gas prices. In Georgia, the governor had asked his state's public schools to close for two days last September when Hurricane Rita threatened to shut down oil refineries.

So, the question is this: Should public schools be closed in order to save fuel costs?

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

BLITZER: Thanks, jack. We'll get back to you soon.

Up ahead, it's a nightmare scenario that's among many Americans' worst fears: a bird flu pandemic here on American shores. If that were to happen, what would the government do? We're going to tell you what the government is now planning.

And the company that makes your BlackBerry faces more legal limbo. Might your BlackBerry be blacked out because of it?

And Mexico is poised to legalize small amounts of cocaine, even heroin and ecstasy. But why? What's going on? Chris Lawrence standing by in Mexico. He'll explain.

(COMMERCIAL BREAK)

BLITZER: For many families and others, it's an appalling act, going to the funerals of service members killed in Iraq to cheer their deaths. Can you believe this? But the group staging them is finding some support.

Let's get some details. This is an amazing story. Brian Todd is standing by -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, that support comes on the ever precarious grounds of free speech. Now, if any group could ever test the bounds of the First Amendment, it's the Westborough Baptist Church.

(BEGIN VIDEOTAPE)

TODD (voice-over): They show up and shock.

UNIDENTIFIED FEMALE: Every dead soldier coming home is a punishment from the lord, your god.

TODD: At the funerals of service members killed in Iraq, these folks condemn the dead and their families.

UNIDENTIFIED MALE: You are a hell-bound minister of Satan.

TODD: Followers of the Kansas-based Westborough Baptist Church have been crisscrossing the U.S., protesting at more than 150 funerals of service members. They believe god is killing U.S. soldiers in Iraq to punish America for tolerating homosexuality.

They've caused such a disruption that more than two dozen states are either trying to pass laws restricting the movement of the protesters or have already passed them. There's a proposal in Congress for a federal law restricting their movement in national cemeteries.

But the Westborough Baptist Church now has a powerful ally. The American Civil Liberties Union is filing suit to challenge Kentucky's new law.

LILI LUTGENS, ACLU: What is important here is that the First Amendment protects the free speech rights of everyone, and that includes those whose message we dislike, that we find offensive.

TODD: The father of one U.S. soldier killed in Iraq whose funeral was picketed by the church, as well as veterans group leaders, say their friends and loved ones died to protect freedom of speech. But this lawsuit...

JOE DAVIS, VETERANS OF FOREIGN WARS: It infuriates us. When you have some people that are out there just spreading this hate and prejudice and hiding behind the First Amendment to do so, it's something that's just not right. It doesn't sit well with, I would pretty much bet, most of Americans.

(END VIDEOTAPE)

TODD: Like it or not, Westborough won't stop. One church leader told me they are heading to Michigan this weekend to protest at two soldiers' funerals. Michigan lawmakers are trying to pass one of those restriction laws, but it hasn't passed yet -- Wolf.

BLITZER: What a story. Brian, thanks for that.

Brian Todd reporting.

Coming up, the United States versus the terrorists. Who's winning? Our security expert has some startling answers. My interview with the former inspector general for the Homeland Security Department, Clark Kent Ervin. He's got a brand new book out that will shock you.

And your BlackBerry may work now, but will it work after a new lawsuit against the company that makes it? Stand by. We've got details.

(COMMERCIAL BREAK)

BLITZER: Let's check in with our Ali Velshi. He's got "The Bottom Line" -- Ali.

ALI VELSHI, CNN CORRESPONDENT: A whole new few months of stories for me just showed up, Wolf.

(BUSINESS REPORT)

BLITZER: That's amazing. Thanks very much, Ali. We will check back with you. Ali Velshi with "The Bottom Line".

And coming up, the Bush administration gets ready to reveal its battle plan for a possible bird flu pandemic here in the United States. Does it have enough weapons in its arsenal?

And is Vice President Dick Cheney changing his role in the White House? Does he still carry lots of clout? Our John King has been looking into this story. We'll take a closer look. That's coming up in our 7:00 p.m. Eastern hour right here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington.

How would this country fight a potentially devastating bird flu pandemic? The Bush administration is now preparing to unveil its bird flu battle plan.

Let's go live to the White House. Our correspondent Suzanne Malveaux standing by -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, it's considered an implementation plan, and really it builds on what President Bush released back in November. It was general guidelines, a roadmap, if you will, how the federal government and the public should deal with the potential of a pandemic, a bird flu outbreak in this country.

And they really take on the worst possible case scenario. That being up to two million dead and 40 percent of the workforce incapacitated.

A couple of things coming out of this 220-page document. First, highlighting that the United States is stockpiling vaccines, but they're also working on a potential new vaccine that would adapt to this changing virus.

Secondly, of course, they are also encouraging voluntary quarantines and they give specific recommendations for businesses. How would you deal with a work force that was largely infected? They talk about holding tell conferences, as well as liberal leave policies, and keeping workers three feet apart from each other in a work setting.

And then finally, another interesting point here, they talk about restricting travel, whether or not it's a passenger that's aboard a plane, how they would divert that plane to another city if they found out that that person was infected.

Now, one of the things the report does not actually recommend is if there was a pandemic, that broke out somewhere outside of the United States, that they would not shut down the U.S. border. This is something that is considered impractical. And I spoke with a Bush administration official, somebody, a part of the bio defense team, about that particular issue.

(BEGIN VIDEO CLIP)

RAJEEV VENJAYYA, SPECIAL ASSISTANT TO THE PRESIDENT: If you were to eliminate or stop 90 percent of travelers with flu from arriving in the country, you might delay the peak of a pandemic by one to two weeks. If you limit that number by up to 99 percent, some models show that you might delay the pandemic another one to two weeks.

(END VIDEO CLIP)

MALVEAUX: Now, Wolf, I can't stress enough, really should emphasize here that there is no sign of a pandemic. This administration does not want to alarm the public. There's not even evidence at this point that there is people to people transmission of this particular disease. It is really only those affected by poultry. So they want to make that very clear. But White House officials also saying they want this country to be prepared -- Wolf.

BLITZER: Suzanne at the White House, thanks for that.

Let's turn now to our CNN security watch. Are terrorists more committed to attacking the United States than this country is to stopping them? And how vulnerable is the United States to the next terror attack?

Joining us now is our CNN security analyst Clark Kent Ervin, he is the former inspector general of the Department of Homeland Security. He is the author of an important new book entitled "Open Target, Where America is Vulnerable to Attack."

Must-reading for our viewers. I've got to tell you, Clark, this was eye opening when I went through parts of this and we are going to go through details of the book, but what do you make, is the government ready for, God forbid, a bird flu pandemic in this country?

CLARK KENT ERVIN, CNN SECURITY ANALYST: Well, the answer is probably no, Wolf. There is no question but that we need to be prepared for that kind of disaster. Efforts are under way at the White House but the whole record of the administration, frankly, has been one that has been not one of preparedness with regard to all these kinds of events. So it's a big question mark.

BLITZER: And the question mark is when, and we hope it never hits. If it hits, it would be disastrous by all accounts. Everyone says though, it's going to hit. There's going to be a pandemic. It's not a matter of if but when.

ERVIN: Exactly.

BLITZER: Let's talk a little bit about, less than a month now until the hurricane season. It starts on June 1st. Do you believe the lessons of Katrina have been learned and that the federal government is now ready to deal with another hurricane disaster this summer or into the fall if it were to happen? ERVIN: I really don't think so. We're still talking about the organization chart. There's debate about whether FEMA should be part of the Department of Homeland Security as you know. And the issue isn't really where FEMA sits on an organization chart.

If you have the same inadequate budget, if you have the same inexpert leadership, you have the same result. What we need to do in FEMA and in the Department of Homeland Security in general is to take it and make it effective. Give it the money that it needs, give it the leadership it needs and give it a culture that welcomes outside scrutiny and criticism.

BLITZER: Let me read from "Open Target," your new book. This passage -

"Our resolve to defeat the terrorist threat here at home does not match the terrorists' resolve to defeat us here at home. This is what makes the vulnerability gap so wide in the terrorists' favor. As long as this imbalance remains, each man, woman and child in the United States will be in mortal danger."

The bottom line, you think they're more committed to killing us than we are to stopping them.

ERVIN: Let me give you an example. Just last week, Secretary Chertoff announced a plan to begin vetting the names port workers against terrorist watch lists. That's great, but why are we now, three years after the creation of the Department of Homeland Security, nearly five years after 9/11, just getting around to doing that?

Conversely, bin Laden just last week announced again, reiterated his intention to attack the homeland. So the vulnerabilities that I lay out in this book are well known to the terrorists. They are working overtime to exploit them. Our leaders are not working overtime to close those security gaps.

BLITZER: On almost every page something startling pops up. On page 10, you write this, "Time and again, to my growing disillusionment and dismay, I found that our leaders were not taking the threat of terrorism seriously. I found that the leadership of the Department of Homeland Security seemed to care more about protecting their reputations than protecting the country."

You worked in this Bush administration, what do you mean by this?

ERVIN: Well, to give you an example, we did some undercover tests in '03 at airports around the country, testing the ability of our investigators to get guns and knives and bombs through the screeners system. We were able to do it all too often. When I shared those results with the then-head of TSA, let's say at airport X, the results were 40 percent failure rate.

He stopped me, and said, why are you calling it a failure rate? Why not focus on the pass rate, and I said the reason is, if our screeners are failing four times out of 10, it doesn't matter if they are succeeding six times out of 10. Rather than making bad results better he was focused on making bad results sound better.

BLITZER: Let me read two more passages. Page 189, "Given the only fitful progress it has made to date on border and transportation security and on protecting critical infrastructure and soft targets, one might well wonder why it is, exactly, that we still have a Department of Homeland Security."

ERVIN: I think part of the problem is that we seem to think that simply because we now have a Department called Homeland Security the homeland is secure. Creating the Department of Homeland Security was the beginning of the job. Not the end of it.

From the beginning, the department has been underfunded. From the beginning the department has lacked expert leadership. And from the beginning, the department has had a culture that has not welcomed outside criticism and scrutiny. And only if you do that can you actually fix the problems.

BLITZER: And you are very critical of the current secretary of homeland security, Michael Chertoff. You write this, on page 228, "On top of being politically tone deaf, Chertoff has no management experience to speak of, either."

ERVIN: Well, that's right, I actually thought that Secretary Chertoff would be a big improvement over Secretary Ridge. He's very decisive. He's very detail-oriented. He's very smart. But of course, Katrina was his first big test and it's clear for all the world to see that that test was failed.

BLITZER: Clark Kent Ervin is the author of "Open Target: Where America is Vulnerable to Attack." It is just out, and as I said before, it's important must-reading for our viewers. Hopefully they will read it inside the government, as well. Clark, congratulations on the new book.

ERVIN: Thank you very much, Wolf.

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

Still to come, Iran's leaders are proud of the country's nuclear advances. But how do every day Iranians feel about that? Our Aneesh Raman is inside Iran and he is talking to Iranians. This is something you will see only here on CNN.

And pay high gas prices or stay home from school? That's the question up for grabs in Tennessee. What do you think of that? Jack Cafferty has been going through your email. I can't read this.

(COMMERCIAL BREAK)

BLITZER: Lou Dobbs getting ready for his program that begins right at the top of the hour. He's standing by in New York to tell us what he's working on. Lou?

LOU DOBBS, CNN HOST: Wolf, thank you.

Coming up at 6:00 Eastern here on CNN, tonight, we'll be reporting on what is an escalating war on our middle class by corporate America, supported by elected officials and powerful lobbyists. Gasoline prices are soaring. But the White House and Congress have offered no solutions. We'll have complete coverage. Also, left wing radical groups trying to hijack the illegal alien pro amnesty agenda for their own purposes. We'll have that special report.

And among my guests tonight, an organizer of yesterday's boycotts, protests, who says her goal is nothing less than, quote, "a new America," end quote. And I'll be joined tonight by three top radio talk show hosts. Mark Simone, Stephanie Miller and Martha Zoller all will be our guests. All of that and a lot more coming up at the top of the hour. We hope you'll be able to join us. Please so. Wolf, back to you.

BLITZER: Thanks very much, Lou. We'll be watching.

As the world powers gathered in Paris today on the nuclear standoff with Iran, Iran raised the stakes once again today, threatening to attack Israel in response to any, quote, "evil act by the United States."

A top U.S. diplomat predicts the United Nations will soon pass a resolution ordering Iran to suspend its nuclear program. The undersecretary of state Nicholas Burns says if Iran doesn't comply, a move will be made to impose sanctions. But Iranians are rallying around their nuclear program right now.

CNN's Aneesh Raman is one of the few Western reporters inside Iran -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Wolf, a big reason why Iranian officials can afford to remain so defiant is the Iranian people.

(BEGIN VIDEOTAPE)

RAMAN (voice-over): High above the capital, amid the mountains of northern Iran, a defiant few are clinging to the last days of winter. And here, among Iran's young elite, who more than most lean towards the West, we find support for the country's nuclear program.

"When it first came up, I was not in favor of it," says 22-year- old Farid (ph). "But our fuel will one day finish and nuclear energy is very easy."

Farid, an English literature major and his college friends Ashkan (ph) and Farshad (ph) are perhaps who the West would want fostering dissent in Iran. But on this issue - "The U.S. cannot use this to create division between the nation and the government because the people are backing the government." Twenty-one-year-old Farshad and the other two say it is their absolute right.

"If it is only for energy," says 19-year-old Ashkan, "which is what the media says, then, we all support it, but if it's different than that, then it's up to God."

(on camera): It does seem in Tehran, at least, that across economic and generational lines, there is near uniform support for the country's nuclear program.

(voice-over): And at one of Tehran's major malls, a warning from 20-year-old Amir (ph) that if sanctions are imposed, "it will increase support 100 percent," he says, after all, this is our country. We must somehow defend it. If we don't stand behind our country who do you expect to stand behind it?"

And as for war, back on the slopes, there's hope it will not come, fear that it might. "Nothing good can come of military war in Iran," says Ashkan. "What the U.S. did in Afghanistan and Iraq cannot be done here. Here it would be worse."

The nuclear issue, it seems, is for now is a unifying one. But Iranians may soon have to decide if that unity can weather whatever comes next.

(END VIDEOTAPE)

RAMAN (on camera): And as the UN continues to debate about what to do about the nuclear program, the country continues to warn if any action is taken by the UN Security Council, Iran's nuclear program will no longer, in their words, be transparent -- Wolf.

BLITZER: Aneesh in Tehran, thank you for your outstanding coverage.

Despite extensive news media coverage of the Middle East, three quarters of young adults in the United States right now can't, can't find Iran on a map. That's according to a new Roper Poll released online by National Geographic. Let's get a quick geography lesson from our Internet reporter Abbi Tatton -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, it wasn't just Iran that confused people responding to this survey. Six out of 10 people could not identify Iraq on a map. This according to a survey of 18 to 24-year-olds. Another country, Afghanistan that's been in the news a lot. Only one in 10 people could find that country on a map.

In fact, China was one of the very few countries outside of North America that young people surveyed could identify. Did people do better in this country, well a little bit. Texas, California, easily identified by the people doing the survey. But Ohio, not so much. People tended to put it in Indiana or Illinois. In response to this survey, National Geographic is putting an education campaign on the Web. You can take the test yourself there. We've posted it at CNN.com/situationreport, all those details -- Wolf.

BLITZER: Thanks very much, Abbi, for that.

Up ahead, marijuana, cocaine, even heroin may soon be legal in Mexico in small quantities. Will that hurt this country's war on drugs? And what do polar bears, hippos, gazelles have in common? The shocking story ahead in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Could Mexico soon legalize small amounts of cocaine, heroin, even ecstasy? And if so, might Americans be running to the border to get the dangerous drugs? Our Chris Lawrence has details from Tijuana. Chris?

CHRIS LAWRENCE, CNN CORRESPONDENT: Wolf, here in Mexico, officials say they're not just legalizing drugs. They say they're going to spend less time going after the users and the addicts and more time targeting the drug gangs and the dealers. But there's no doubt this move has caused a tremendous amount of shock and frustration on the U.S. side of the border.

The new law would make it legal to possess about four marijuana joints. About four lines of cocaine, even 25 milligrams of heroin. LSD, ecstasy and other drugs also on the list.

Now, under Mexico's current law, if someone gets caught with a small amount of drugs, it's up to the discretion of local judges and police to decide whether they should be prosecuted on a case by case basis. There are a lot of loopholes in that, if you could prove that you are an addict. It also led to a lot of bribes.

Supporters say, because this new law sets such strict limits on possession, it could actually lead to greater prosecution.

But I spoke with one counselor here in Mexico who's made it her job to try to get people off drugs, and she says she feels like her government has given up the fight and that this decision will onto make her job that much harder.

On the U.S. side, officials have already called this a hostile action and many feel it's going to have a spillover effect into border cities like San Diego. Some of those same officials say the U.S. is already focusing so much right now on immigration issues, a move like this by the Mexican government will only convince more people to call for a tighter border -- Wolf.

BLITZER: Chris Lawrence in Tijuana in Mexico. He's going to have a lot more coming up in our 7:00 p.m. Eastern hour. Betty Nguyen is joining us once again from the CNN center with some other stories making news. Hi, Betty.

NGUYEN: Hi there, Wolf. There are new indications that the jury in the sentencing trial of Zacarias Moussaoui may be laying in for the long haul. Jurors had been plotting a work schedule only one day at a time. Well, today, the panel set a work schedule for the rest of the week. The members are deciding whether the confessed 9/11 conspirator should receive the death penalty. Jury consultants say the likelihood of a death penalty shrinks the longer deliberations continue.

Well, in another courtroom, this one in Houston, Kenneth Lay has wrapped up six days of testimony in his federal fraud and conspiracy trail. The former Enron CEO jousted with the prosecutor, laying blame for the energy giant's demise at the feet of ex chief financial officer Andrew Fastow. Lay is accused of lying to investors and employees about Enron's condition when he allegedly knew that its success extended from an accounting trickery.

A fiscal crisis of a different sort in Puerto Rico to tell you about, where the government has ground to a partial halt for a second day. Almost 100,000 public sector workers lined up at unemployment offices after being thrown off the job. The shutdown began yesterday when Puerto Rico's governor and the opposition controlled legislature failed to come to terms over a $740 million budget shortfall.

Well, Hawaii is under invasion. Check it out. From an aggressive and some say ugly lizard, yes, it's kind of ugly. The brown anole is an invader species believed to be responsible for the drop in population of other lizard species. The lizard, which is indigenous to the Caribbean first turned up in Hawaii more than 10 years ago. Now, agriculture experts says it is eating other lizards, greatly reducing their populations. The brown anoles have spread across Oahu, parts of Hawaii and Maui. Pesky problem, Wolf.

BLITZER: OK.

NGUYEN: Ugly, too, right?

BLITZER: Certainly. Betty, thanks.

Today, the World Conservation Union is saying the polar bear is just one step away from being endangered. The new report details more than 16,000 species of animals and plants at risk of disappearing. Let's bring back our Internet reporter, Jacki Schechner. She has details -- Jacki.

SCHECHNER: Wolf, the polar ball, the gazelle, the common hippo. All more vulnerable now than before. The hippo due to unregulated hunting for ivory and meat throughout Africa. Even worse off is the pygmy hippo. This due to clearing of forest in its natural habitat of West Africa.

The report, in fact, says that humans are the greatest risks to animals for a variety of reasons. It also included marine life in this report. Twenty percent of sharks and rays at risk of extinction now. There's a little bit of good news, like the recovery of the white tailed eagle. But, in fact, we are losing more species than we are saving. The full searchable database of some 40,000 species in total will be available online on Thursday. Go to CNN.com/situationreport, we posted the links of the information for you there -- Wolf.

BLITZER: Thanks, Jacki, for that.

Up next, trading learning for fuel. School buses go idle, kids stay home, all because of fuel prices. Jack Cafferty joining us with his question of the hour. Should schools be closed in order to save fuel costs? We have the answers -- your answers when we come back. Stay with us. You're in THE SITUATION ROOM.

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BLITZER: Let's go back up to New York and check in with Jack Cafferty. He's got the "Cafferty File" -- Jack.

CAFFERTY: It's exciting to be in the wall, isn't it, Wolf?

BLITZER: You are in the wall.

CAFFERTY: Have you been in the wall?

BLITZER: I've been in the wall many times.

CAFFERTY: Yes. It's cool.

One Tennessee school system gave nearly 4,000 kids the day off Friday and again yesterday to cut costs on transportation. Raya (ph) County in Tennessee, 34 miles long and the price of diesel which runs the school buses has become a huge problem. So the question is, "Should schools be closed in order to save fuel costs?"

Richard in Ormond Beach, Florida. "Instead of making the oil companies pay a windfall profits tax, let's have them sell their diesel fuel to every school system in the country at their lowest wholesale cost. Although that won't make much of a dent in their obscene profits, it will keep the schools from closing and it might even give big oil some positive press."

Ann in British Columbia. "Save fuel and close the schools. Do both. Extend the school day by one to two hours and remain open for four days, not five. Fuel is saved and the kids still get their education."

Harold in Anchorage, Alaska. "School districts could save a great deal in costs by having their three month break in the winter instead of the summer. The original purpose of summer vacation from school was to provide labor for family farms and in most regions this is no longer important."

Gwennis is Columbus, Ohio. "No, closing schools is the worst thing to do. Our children are our future, they need the best schools and teachers we can give them. I think the school district should get special fuel discounts and federal grants to cover the excessive fuel costs."

And Walter writes from Rector, Arkansas, "Hell no, if you're going to shut something down to save gas, put that bunch on Capitol Hill to walking instead of riding around in those SUVs that get 12 or 15 miles a gallon on the highway, eight to 10 in the city."

I like the way you think, there, Walter -- Wolf.

BLITZER: Good thinking, Walter, indeed.

Jack, see you back here in one hour. I want to close this hour with a closer look at some of the hot shots coming in from our friends over at the Associated Press. Pictures likely to be in your hometown newspapers tomorrow. Check it out, in Bolivia, soldiers standing guard at a natural gas plant a day after the president issued a decree to nationalize the industry. The European Union is warning the move could hurt world energy markets.

In Iraq, bubble-gum and war. Two marines ride in the back of a Humvee through the streets of Baghdad.

Check this out. In India they call him wonder boy. Four year old Badia Singh (ph) ran 40 miles to make it into the record books. The boy has been growing up in slums but was discovered by a sports coach. He was escorted by doctors, 300 paramilitary cadets who plan to sponsor his upbringing.

Finally, in the Philippines, a slightly toxic break from the heat. Kids pile on a slow-passing oil barge to dive into a heavily- polluted river. Temperatures hovering around 98 degrees.

That's it for me. "LOU DOBBS TONIGHT" starts right now -- Lou.

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