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Controversy Surrounding Michael Hayden for CIA; Interview with Trent Lott; New Developments in Capitol Hill Lobbying Scandal

Aired May 08, 2006 - 16:00   ET

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


WOLF BLITZER, CNN ANCHOR: Thanks very much, Susan. And to our viewers you are in THE SITUATION ROOM, where new pictures and information from around the world are arriving all the time. Standing by, CNN reporters from across the United States and around the world to bring you today's top stories.
Happening now, some surprising skepticism on Capitol Hill about the president's choice for spy chief. It's 4:00 p.m. here in Washington where Mr. Bush officially tapped Air Force General Michael Hayden for the job. Is he the right man to lead the CIA right now? I'll ask Senator Trent Lott if he shares some other Republicans' doubts.

Also this hour, what is hurting the president more, the Iraq conflict or gas prices? We're just minutes away from unveiling some brand new poll numbers we have that will tell us a lot about where the president stands and where you stand.

And Senator Lieberman is slipping. Joe-mentum. The 2000 vice- presidential nominee faces a serious reelection challenge. Is he paying a price for siding with the president on Iraq?

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

President Bush says General Michael Hayden is supremely qualified to be the next CIA director. Here in Washington right now there's a good deal of second guessing about the choice, some of it coming from Republicans. Among other things, Hayden's military status is prompting questions about the spy agency's independence from the Pentagon. Our congressional correspondent, Andrea Koppel, is standing by.

Let's go to the White House first. Kathleen Koch has the latest from there.

KATHLEEN KOCH, CNN CORRESPONDENT: The White House is going to bat for this nominee. Though it was initially caught somewhat off- guard by some of the early criticism. An administration official tells CNN the White House had expected some push back from lawmakers over Hayden's involvement in the domestic surveillance program. After all, he helped launch it as director of the National Security Agency right after 9/11.

But the White House was less prepared for the concerns expressed by lawmakers over the idea of putting a military man at the helm of the nation's civilian spy agency. Still today, President Bush insisted that Hayden was the best man for the job.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Mike Hayden was unanimously confirmed by the Senate last year for his current post. I call on the Senate to confirm him promptly as the director of the Central Intelligence Agency.

The work of the CIA has never been more important to the security of the American people. America faces determined enemies who struck our nation on September 11, 2001, and who intend to attack our country again. To stop them we must have the best possible intelligence.

(END VIDEO CLIP)

KOCH: The White House is continuing to make its case for its nominee to Republicans up on the Hill, something that the administration officials says they were indeed doing all weekend. And though some lawmakers have suggested that Hayden resign from the military to quell this criticism, the concern that he wouldn't be able to give the president frank and independent advice. In accepting the nomination this morning Hayden made no mention at all that he was even considering that, Wolf.

BLITZER: Kathleen, Thanks.

Let's go up to Capitol Hill. Andrea Koppel is sanding by with reaction from Democrats and Republicans. Andrea?

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Wolf, CNN has learned that General Hayden has already begun making the rounds here on the Hill. He has met for 30 to 40 minutes with the powerful chairman of the Senate Intelligence Committee, Pat Roberts, according to one of his staffers.

General Hayden is a well known figure up here. He's one of -- he's known as one of the best intelligence briefers in town. In fact, he was here just about a year ago when he got a very warm welcome. He appeared before the Senate Intelligence Committee when he was nominated to be the deputy director of national security.

And while Hayden will I'm sure get another warm welcome, senators have already made clear he's going to be facing some very sharp questions.

(BEGIN VIDEOTAPE)

(voice-over): For the White House it was a one-two punch from two top Republicans. The Chairman of the House Intelligence Committee Peter Hoekstra on Sunday said General Hayden was the wrong person at the wrong place at the wrong time to lead the CIA. He wasn't backing off this morning.

REP. PETER HOEKSTRA (R-MI), INTELLIGENCE CHAIRMAN: It signal that we are not that concerned about having an independent intelligence community, independent of the Department of Defense. KOPPEL: But while Hoekstra's views as chairman of House Intelligence carry weight, it's up to the Senate to green light Hayden's nomination or to derail it, and Pat Roberts, the chairman of the Senate Intelligence Committee, was less than enthusiastic.

PAT ROBERTS (R-KA), INTELLIGENCE CHAIRMAN: I'm not saying he's the right man at the right time and the right job, but that's why we have a hearing on the Senate.

KOPPEL: Among top concerns, whether a four-star general heading up the CIA would put too much of the intelligence community under military control. And Hayden's role in developing and then defending the highly controversial warrantless wiretapping program.

SEN. RUSS FEINGOLD (D-WI), INTELLIGENCE COMMITTEE: I know that he wasn't the top man but the fact is he has stood with the president, others, in claiming that somehow the president has inherent authority to do this.

KOPPEL: The White House scrambled to take its skeptics head on, putting the national security adviser on TV three hours before President Bush made the announcement.

STEPHEN HADLEY, NATIONAL SECURITY ADVISER: So we think that the tricky area is not whether he's military or civilian. There are established precedence for military officers serving. The key question is who is the right person for the job? The president has concluded that's Mike Hayden.

(END VIDEOTAPE)

KOPPEL: Now the question is will the Senate agree? The chairman of the Senate Intelligence Committee Pat Roberts has yet to set a date for these hearings. The committee has to meet to draw questions they will send to the White House for Hayden to answer. It still could be a number of days.

As one congressional source told me, Wolf, he said Democrats are in a feisty mood these days and you never know what to expect when the questioning gets underway.

BLITZER: Andrea Koppel on the Hill. Thank you very much.

And we want to thank Andrea and Kathleen Koch. They are part of the best political team on television. CNN, America's campaign headquarters.

General Hayden's nomination as CIA chief has reignited the debate about the president's domestic wiretapping program. Hayden's oversight of the program as the former head of the National Security Agency is expected to be an issue at his confirmation hearings.

But is it an issue for the American people? The most recent polls on this issue were taken back in March. The NBC News/Wall Street Journal poll showed 52 percent supporting wiretaps without court warrants, 46 percent opposed. In an ABC News/Washington Post survey, 54 percent said wiretapping phone calls to investigate terrorism is acceptable, 45 percent said it's unacceptable.

And speaking of polls we have a brand new one on the president's approval rating and much more. We'll have all those numbers coming up here in THE SITUATION ROOM. Our Bill Schneider crunching the numbers right now.

In the meantime let's hear from a key Republican on the Senate Intelligence Committee. That's the committee that's going to hold confirmation hearings for General Hayden's nomination as the CIA director. Senator Trent Lott is a Republican of Mississippi. He's joining us now from Capitol Hill.

Some of your fellow Republicans surprisingly, I must say, Senator Lott are already expressing some skepticism. Peter Hoekstra, the chairman of the House Intelligence Committee, said I do believe he's the wrong person at the wrong place at the wrong time, and even your friend and colleague, Senator Saxby Chambliss, a fellow member of the Intelligence Committee, said this on ABC yesterday. Listen to what he said.

(BEGIN VIDEO CLIP)

SEN. SAXBY CHAMBLISS (R-GA), INTELLIGENCE COMMITTEE: I think the fact that he is a part of the military today would be the major problem.

(END VIDEO CLIP)

BLITZER:: Do you have a problem with the fact he's a four star active duty officer?

SEN. TRENT LOTT (R), MISSISSIPPI: That is a matter to consider. I understand the reservations that have been expressed by some. I have taken a look at General Hayden and I watched him over the past few years.

I've always been impressed with his intellect. His presentations before the Senate Intelligence Committee have been informative and concise and put in a way that you really can understand. When I look at him and his background, he is a four star general. We do not want an intelligence community that's dominated by the secretary of defense position. They have that critical role obviously but they have a bigger role.

But I spoke to Ambassador Negroponte. He has total faith in General Hayden. He's endorsed him. Obviously been his deputy. Worked with him. Here is a four star Air Force general that has an intelligence background that has had diplomatic experience and worked as the deputy director of national intelligence. He clearly is qualified.

So obviously I withhold final judgment until I see how the hearings go and see if there's any major problem that develops but right now my predisposition is to support this nomination and I think it is a good nomination.

BLITZER: Would it be wise for him to retire from the U.S. military and exchange the uniform for a pinstripe suit?

LOTT: Well I discussed that with him this morning. He did call. He is making calls. He did start making the rounds. And I raised that particular point with him. The fact of the matter is he could take off the uniform. He could take off the four stars, but he would still be a four star Air Force general, having just recently retired.

We do want civilian decisions there, but there has been a history. I think, like 13 of the 19 heads of the CIA have had a relatively recent military background. I think you can do that. As a matter of fact, it may take a four star Air Force general to tell the defense apparatus no, wait a minute. We have a national intelligence role, not just a defense intelligence role.

Sometime it takes one of your own to tell you what you really need to hear. So I think this will work. And, you know, I always try to give the benefit of the doubt to the president and his nominations, but this is one that's also endorsed by the head of the National Intelligence Organization. And I listen to that.

BLITZER: Six of the 19 actually were active duty, but you're right. Several of the others had recently retired before being named CIA director.

The other issue that's come up is his role in authorizing the warrantless wiretaps, that whole controversial program. The chairman of the Senate Judiciary Committee, Arlen Specter, Republican of Pennsylvania, he said this over the weekend.

He said, "I was briefed by General Hayden and I got virtually no meaningful information. Now with Hayden up, this gives us an opportunity to ask these questions and insist on some answers."

He's very unhappy about this program, and he's especially unhappy that in his words, he didn't get any real answers from General Hayden.

LOTT: Obviously, this is an area where there will be some serious questions. That's understandable, and I think he'll be able to handle those questions quite well. I do think that to have a program, where we try to listen to what terrorists are saying to each other out of the country, is a program that makes good sense.

And so I think this is an issue that may actually wind up to his benefit. Those that don't support a program at all in this area obviously they may go after this. But I think that the answers they will get from General Hayden will satisfy the majority of the American people that he was doing the right thing under the circumstances.

BLITZER: Trent Lott, Republican of Mississippi, as usual, thanks very much for joining us.

LOTT: Thanks very much, Wolf.

BLITZER: And we're going to get a Democrat's view of the Hayden CIA nomination. That is coming up in the next hour. I'll speak live with Senator Ron Wyden of Oregon. He's a member of the Senate Intelligence Committee as well.

There's news on those trapped miners in Australia. Let's bring in our Zain Verjee. She is joining us from the CNN center with the latest.

What has happened -- Zain?

ZAIN VERJEE, CNN CORRESPONDENT: Wolf, in the words of one official, the great escape is over in Beaconsfield, Australia. This is the scene there right now. The end of a drama that has riveted the nation of Australia.

All smiles and cheers just a moment ago, as one ambulance pulled away, rescuing one of the two miners that had been trapped for two weeks underground in a tiny steel cage that was about 3,000 feet underground.

There he is all smiles in the back of the ambulance. There is one other gold miner that will be pulled out. They will be taken in separate ambulances -- there is the other one -- to a hospital close by.

They went through this ordeal for a number of days, about 300 hours. They were buried after a small earthquake shook the region on the 25 of April. It trapped them under tons of rock in Beaconsfield gold mine. And the cage they were actually in kept them from being crushed.

The men said to be, according from reports, in safe and good health. And they were detected after rescue crews detected them with heat sensors. The crowds there have gathered as the ambulances pull away, all smiles. People are clapping and cheering. This story ended well.

Unfortunately, though, for one of their colleagues, he was killed when the earthquake happened, but this, a very joyful moment and the end of what could have been a tragic story. But, Wolf, finally these two men above ground, thumbs up and plenty of cheers all around -- Wolf.

BLITZER: I am very happy for all of Australia. Todd Russell and Brant Webb, the two men rescued after two weeks.

Zain, thanks for bringing that to us.

Jack Cafferty is very happy about it as well. He is joining us in New York. You can go smile, Jack.

JACK CAFFERTY, CNN ANCHOR: Yes, I'm very happy for them. You're right.

The Democrats are talking about their plans if they win the House in the upcoming midterm elections. Right away the critics are saying it's too early to be talking about that. The elections are six months away. But last week the Republicans were already out with their version of the Democratic agenda. The Republicans were saying that the Democrats will impeach President Bush, put the war on terror on the back burner and raise taxes.

Not surprisingly, the Democrats decided to speak for themselves over the weekend. And here is what they say they will do right away, raise the minimum wage, roll back parts of the Republican prescription drug law, implement homeland security measures, including all of the recommendations of the 9/11 Commission and reinstate budget deficit controls. Oh, yes, and they said they will begin investigations of President Bush too.

Here's the question, is now the time for Democrats to announce their agenda, assuming they win the House in November? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Thanks Jack for that.

Coming up, we're going to tell you more of what is going on. Also, by the way, if you want a sneak preview of Jack's questions, plus an early read on the day's political news, what is ahead in THE SITUATION ROOM, sign up for our daily e-mail alert. Just go to CNN.com/situation room, and you'll be able to sign up. Go ahead and do that.

Coming up, more poll problems for the president, but is it Iraq or gas prices that are hurting him the most? We'll break down our brand new numbers. They are about to be released. Bill Schneider is standing by with that.

The political strategy behind naming General Hayden to lead the CIA. Does today's move put Democrats on the defensive? I'll ask Donna Brazile and Torie Clarke. They are both standing by in our "Strategy Session."

And later, more problems for Congressman Bob Ney. Do new developments provide more links to fallen lobbyist Jack Abramoff? Stick around. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Zain. There is some other important news we are following -- Zain.

VERJEE: Wolf, Iran's President Mahmoud Ahmadinejad is offering, quote, "new ways to end the standoff over Tehran's nuclear program." They are outlined in a letter he sent to President Bush via the Swiss Embassy. And no details were given, and the letter comes as Washington is pushing for international sanctions against Iran to pressure the country to give up its nuclear program. U.S. officials note the timing of the letter.

(BEGIN VIDEO CLIP) JOHN NEGROPONTE, NATIONAL INTELLIGENCE DIRECTOR: Certainly, given the fact that the issue of Iran is before the United Nations at the time, certainly, one of the hypotheses you would have to examine is whether and in what way, the timing of the dispatch of that letter is connected with trying in some manner to influence the debate before the security council.

(END VIDEO CLIP)

VERJEE: We're going to have much more on the letter from the Iranian president and Mr. Bush next hour here in THE SITUATION ROOM.

President Bush is calling for more peacekeepers in Sudan's troubled Darfur region. The war there has killed tens of thousands of people and displaced millions. Mr. Bush telephoned the Sudanese president seeking support to almost double the number of peacekeepers currently at about 7,200 and to put the expanded force under U.N. control. He also promised increased food aid.

(BEGIN VIDEO CLIP)

BUSH: America will not turn away from this tragedy. We will call genocide by its rightful name and we will stand up for the innocent until the peace of Darfur is secured.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: What's happening?

UNIDENTIFIED MALE: Shut the door, shut the door. You don't have the right.

(END VIDEO CLIP)

VERJEE: An angry mob at a Darfur refugee camp chased out a United Nations official, aid workers and journalists today, including CNN senior international correspondent Nic Robertson and his crew. The crowd turned on the group when they began to suspect an interpreter of being a government spy or a member of the Jangaweed militia that has been responsible for many of the killings in Darfur. Nic and his crew captured the tense incident on tape. As you can see from this dramatic and exclusive footage that we have, we're going to bring you a full report coming up from Nic Robertson in our next hour. Wolf?

BLITZER: And just to remind our viewers, Zain, it's an amazing piece of journalism that Nic and our team in Darfur have done. You're going to want to stick around and see his exclusive reporting and the amazing video. They risked their lives. They came very, very close to a disaster. Thank god everything worked out fine in the end for Nic and our team. But we're going to show you that here in THE SITUATION ROOM in the next hour.

There's a strange development in the case against Zacarias Moussaoui. Last week the jury sentenced the 9/11 conspirator to life in prison but only moments ago Moussaoui and his lawyers filed a motion requesting a new trial. Our Internet reporter Abbi Tatton is standing by with details. Abbi?

ABBI TATTON, CNN INTERNET REPORTER: Wolf, here's that latest motion from Moussaoui asking to withdraw his guilty plea. And he supports this with 18 different points.

One of them that he didn't have a Muslim lawyer and because of this he decided that American justice was just a charade. After that, he started acting hostile after he was in solitary confinement. He says that he decided to testify that he was part of the 9/11 plot even though that was a complete fabrication.

Many points here but the bottom line from Moussaoui is that he now trusts the U.S. justice system and wants to start over to have a new trial. This is all online at CNN.com/situationreport. Wolf?

BLITZER: Abbi, that was just posted a few moments ago, thank you.

Right now we have some new snapshots of a president in his second term and the trouble he faces. The issues giving him the most political grief. Our senior political analyst Bill Schneider is joining us now with some brand new CNN poll numbers. What are we learning, Bill?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, Wolf, has bush hit bottom yet? The answer is, maybe not.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): The latest Bush approval numbers, 34 percent in the CNN poll, 31 percent in the Gallup/"USA Today" poll. Those ratings are statistically compatible since each poll has a three percent margin of error.

Thirty-one percent is the lowest rating ever recorded for this president. What's the biggest beef with Bush? You might guess gas prices, gas prices, gas prices. But among people who disapprove of the president's performance the answer is Iraq, Iraq, Iraq, 56 percent.

Thirteen percent say it's gas prices. Other issues, 26.

UNIDENTIFIED MALE: The sooner we get out of Iraq and allow the Iraqis to solve their own problems the better.

SCHNEIDER: Certainly the better for Republicans like Representative Paul who has to face the voters this November. According to the CNN poll, the main argument for going to war in Iraq, that it would make the U.S. safer from terrorism, has lost credibility.

Just after the war ended in 2003, 58 percent of Americans felt safer. A year later the number was at 50 percent. Now just one third of Americans believe the war in Iraq has made the U.S. safer. Most Americans now say the war has made the U.S. less safe. Gas prices do continue to cause political damage. SEN. CHUCK GRASSLEY (R), IOWA: With gas prices now hovering around $3 a gallon everyone in Congress is looking for a solution or for someone to blame.

SCHNEIDER: The CNN poll asks people whether they thought recent gas price increases are mostly due to supply and demand problems or unethical behavior by producers and distributors. Not even close. The public does not buy the supply and demand argument. By 61 to 26 percent, the public thinks somebody's to no good.

(END VIDEOTAPE)

SCHNEIDER: Here's even more bad news for President Bush. Richard Nixon, Jimmy Carter and his own father all saw their job ratings dip below 35 percent. None of them ever got back above 40 percent in the Gallup poll after that. Wolf?

BLITZER: What, if anything, should we read from the fact in our new poll, he's gone up slightly from 32 percent to 34 percent, even though in the Gallup/"USA Today" poll, he's down at 31 percent. What if anything does that mean?

SCHNEIDER: Those numbers are all statistically in the same ballpark. They're all compatible because each number has a margin of error of three percent, 34 minus three is 31. Thirty-one plus three is 34. So 34, 32, 31, they all mean the same thing. Very, very low.

BLITZER: Bill Schneider, thanks for that. We're going to have a lot more on these new poll numbers just ahead. Is fixing the situation on the ground in Iraq the only thing that can turn the president's poll problems around? Standing by, Donna Brazile and Torie Clarke.

Plus the political fight over General Hayden. We'll take a closer look at which party's got the upper hand in the battle over the new CIA nominee. All that coming up in today's "Strategy Session."

(COMMERCIAL BREAK)

BLITZER: Welcome back. Today in our "Strategy Session," President Bush name as new CIA director. Is Air Force General Michael Hayden the right man for the job? Why are members of the president's own party voicing some of the most serious concerns?

Joining us now are CNN political analysts, Democratic strategist Donna Brazile and former Pentagon spokeswoman Torie Clarke. Here's how the president made his case for General Hayden earlier today.

(BEGIN VIDEO CLIP)

BUSH: He has demonstrated an ability to adapt our intelligence services to the new challenges of the war on terror. He's the right man to lead the CIA at this critical moment in our nation's history.

(END VIDEO CLIP) BLITZER: Torie, you know, you've met General Hayden when he was director of the National Security Agency. Do you feel comfortable having a military man run the civilian agency?

TORIE CLARKE, FORMER PENTAGON SPOKESWOMAN: Absolutely. And I think people ought to focus on what do we need right now, and he fits the bill to a T.

He understands the technology. He really appreciates the importance of human intelligence, which is something that is lost on some people sometimes. And he is committed to transforming our intel capabilities, at the same time he's addressing the -- the near-term challenges. It's very difficult. It takes a high-energy, incredibly dedicated person. And I think he fits the bill to a T.

BLITZER: He was unanimously confirmed by the Senate when he was up for deputy director of national intelligence. What do you expect Democrats to do this time, Donna?

DONNA BRAZILE, CNN POLITICAL ANALYST: Well, I expect Democrats and Republicans to seriously question his role in the warrantless wiretap.

I expect them to get into whether or not he is the right person for the job. The CIA is a troubled agency. There's been three directors in the last two years. And morale is at an all-time low.

So, Mr. Hayden -- or General Hayden -- I would prefer to have a civilian in that role, but he will have to answer some tough questions that I believe will come from both sides of the political aisle.

BLITZER: The Republican chairman of the House Intelligence Committee, Peter Hoekstra, also prefers to have a civilian as the CIA director. I want you to listen to what he said on "AMERICAN MORNING" earlier today.

(BEGIN VIDEO CLIP, "AMERICAN MORNING")

REP. PETE HOEKSTRA (R), MICHIGAN: This debate should be focused on creating a strong CIA, creating a strong, independent intelligence community, and we're going to spend the next three or four months going through confirmation hearings in the Senate, talking about whether a military person can or cannot or should or should not head the CIA. And we're going to be talking about the -- the terrorist surveillance program, exactly the wrong things to be talking about at this critical moment.

(END VIDEO CLIP)

BLITZER: Although I suspect that, no matter who the president nominated to run the CIA, those questions -- at least the surveillance, the warrantless surveillance questions -- would be a key issue during a confirmation hearing.

(CROSSTALK) CLARKE: Absolutely right. And we have talked about that a lot here before. And I think that is one of those issues, the more people hear about it, and the more they understand it, and then the more they begin to -- it begins to sink in for them, you know, terrorism, there are no borders. We have to do things differently and appropriately. The more that program gets talked about, the better it is for the administration and for Republicans.

But I got to tell you, the overwhelming majority of the people who have been CIA director have had military backgrounds. What they are actually wearing at the time I don't think makes a big difference. But those who are worried about the military pushing around and throwing their weight around in the intel world ought to want someone like that there to say: I know what it is all about. I have been there. He's not going to be pushed...

BLITZER: A lot of Republicans, Donna, are saying...

BRAZILE: Yes.

BLITZER: ... to -- saying to themselves, they hope the Democrats make this warrantless surveillance program an issue in the confirmation hearings, because they think this is a winning issue for Republicans. It will galvanize, generate excitement among the base and, they think, among the American public. When you make the case, hey, we're trying to eavesdrop on al Qaeda, who can oppose that?

BRAZILE: Well, look, no one is opposing the -- the administration doing its job and trying to find bin Laden and everyone else.

What they oppose is -- is the administration going around the -- the FISA court and -- without getting a -- a warrant. So, that's what they oppose.

Now, look, General Hayden has -- has been a technical expert at intelligence. It remains to be seen whether or not he has the capabilities of training, deploying and recruiting civilians to -- to do the kind of work that needs to be done in the Middle East and elsewhere, so that the intelligence agencies can come back up to speed.

BLITZER: Torie, our new CNN poll has the president's approval rating at 34 percent. The Gallup/"USA" number is at 31 percent.

But look at this. The main reason why you disapprove of Bush, we asked that question. And it wasn't gas prices. It wasn't the economy. It wasn't anything else. It wasn't health care. It was Iraq. Fifty-six percent said that's why they disapprove of the job the president is doing.

That -- that's a huge problem for this president.

CLARKE: And I want to take your point up. We're going to focus on the two points he went up in the CNN poll. Look, I don't think that's a surprise. Iraq is a very, very difficult issue, with serious consequences. And although I don't buy into that media only covers the negative side of things, it's the negative part of what is going on in Iraq that gets the overwhelming majority of the coverage. So, I'm not surprised by that.

BLITZER: It does give the president, though an opportunity, if things improve in Iraq, if this new proposed government manages to take charge, to unify the Shiites, the Kurds and the Sunnis, manages to get their military act -- and all those are big ifs, obviously.

(CROSSTALK)

BLITZER: But if there's some light at the end of the tunnel, the president's numbers could turn around.

BRAZILE: Well, they could turn around. And some people expect the president, you know, to stabilize at 34 percent.

Look, the Republicans are in deep disarray. The budget is still a big issue for them. Immigration is still a big issue. And unless they change course in Iraq, many people believe that, unless this becomes a year of significant transition, Iraq is going to continue to haunt the Republicans now through Election Day.

BLITZER: We will leave it there. Donna and Torie, thanks to both of you.

(CROSSTALK)

BLITZER: And thanks to them, not only for what they did right now, but for being part of the best political team on television, CNN, America's campaign headquarters.

Up next, an Ohio congressman apparently implicated in the growing lobbying scandal on Capitol Hill. We will have the latest developments in the case and the legal and political implications.

And just days after entering rehab, find out who is showing support for Congressman Patrick Kennedy. We will tell you.

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

(COMMERCIAL BREAK)

BLITZER: Welcome back.

There are new developments today that appear to implicate Congressman Bob Ney in the widening Capitol Hill lobbying scandal. Ney is a Republican from Ohio. Temporarily, he stepped down from a House leadership role in January, after being tied to the scandal surrounding fallen top lobbyist Jack Abramoff.

Today, Neil Volz, a former chief of staff to Ney, pleaded guilty in federal court to a single count of conspiracy to commit mail and wire fraud. Volz left Ney's office to go to work for Abramoff. Documents detailing the charges against Volz say that Ney agreed to help out Abramoff's clients in exchange for favors. Ney issued a statement today, saying that he's more confident than ever that he will be vindicated.

Let's go up to Capitol Hill, get some more -- our congressional correspondent, Dana Bash, standing by -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, this is just the latest guilty plea of a former Republican congressional staffer turned-Abramoff lobbyist that appears to directly implicate Congressman Bob Ney.

This plea alleges that he agreed to take -- quote -- "favorable official action in exchange for things like a golf outing to Scotland and several meals at restaurants, including Jack Abramoff's restaurant, and several supporting events as well.

Now, several legal -- legal experts I spoke to today said that this really looks like a road map to what will eventually be an indictment of Bob Ney. But Ney's attorneys today emphatically insisted that he is not a target of the federal investigation, and that he -- the allegations here are flat wrong, and that his former staffer, who pleaded today, was coerced by prosecutors.

Now, Mr. Ney's spokesman issued a very defiant statement. And it reads, in part: "The congressman is more confident than ever that he will be vindicated in this matter. There was no bribery. There was no quid pro quo. And there was no wrongdoing committed by Congressman Ney."

And it goes on to say, "While the real facts of these matters await to reveal themselves, the congressman has every intention of continuing his work representing the people of Ohio's 18th District and running a vigorous campaign for reelection."

Now, that last line, Wolf, essentially saying that he is still in the fight, the political fight, seems to be a direct appeal, or a direct sign, if you will, to his own Republican leadership, who appear more and more concerned about Bob Ney.

BLITZER: Well, is there any direct pressure from Republicans on Ney to step down, not seek reelection?

BASH: Well, you know, the House majority leader, John Boehner, in a very public way, decided not to endorse Bob Ney last week, when he had the chance. He was asked about the -- the situation by a reporter.

And I talked to two House Republican leadership sources today, who said that there is a quiet -- quite a concern and a growing concern among the House Republican leadership that Bob Ney might have to step down in the short term in the near future. Now, one called Ney a -- quote -- "distraction," and, really, for a couple of reasons.

One is, obviously, they know the Democrats are running a national campaign against Republicans as part of a -- quote -- "culture of corruption" -- and he plays directly into this -- and also because they are worried about his seat in particular.

But I should note that I talked to Congressman Tom Reynolds, a Republican, who is in charge of the Congressional Campaign Committee. He says that he knows of no pressure, though, Wolf. But I can tell you, there is growing concern inside the House leadership that it could be time for him to step down. Unclear if that will happen.

BLITZER: All right, Dana, thanks very much.

And still to come here in THE SITUATION ROOM, he was the 2000 vice presidential nominee. But has Senator Joe Lieberman's star fallen a bit in his home state of Connecticut? Our Mary Snow has gone there. We are going to tell you about the fight that Lieberman is facing right now in his own party.

And after the huge immigration demonstrations, are Americans feeling more sympathetic toward illegal immigrants? More of our new poll numbers, that's coming up as well.

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

(COMMERCIAL BREAK)

BLITZER: Welcome back.

The midterm election now is just under six months away. And Senator Joe Lieberman is running harder than ever. The Connecticut Democrat and 2000 vice presidential nominee is facing a primary challenger who is opposed to the Iraq war and to Lieberman's support of that war.

Our Mary Snow is on the campaign trail in Connecticut -- Mary.

MARY SNOW, CNN CORRESPONDENT: Wolf, here in Connecticut, incumbent Senator Joseph Lieberman is having to face something he has never had to before in his 18-year Senate career. And that's a Democratic challenger and a primary. And the war in Iraq has a lot to do with it.

(BEGIN VIDEOTAPE)

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT (singing): Happy birthday to you.

(APPLAUSE)

SNOW (voice-over): It looked like a typical campaign stop for Senator Joseph Lieberman in his hometown of New Haven, Connecticut, but, moments later, a dramatic change in mood when a woman claiming to be a former supporter confronted the senator as we finished an interview.

UNIDENTIFIED FEMALE: Why are you betraying your voters?

LIEBERMAN: I'm not.

UNIDENTIFIED FEMALE: Yes, you are.

LIEBERMAN: Look at my record.

UNIDENTIFIED FEMALE: You have...

SNOW: Critics say it's Lieberman's record on Iraq that is causing unrest in this largely Democratic state. He has defended the Bush administration's decision to keep troops in Iraq and not withdraw them,as some Democrats want. And that's what pushed this man to challenge Lieberman.

NED LAMONT (D), CONNECTICUT SENATORIAL CANDIDATE: Baby, I say it's high time we rock the boat!

(CHEERING AND APPLAUSE)

SNOW: Political novice Ned Lamont admits, it's a long shot in taking on Lieberman, the veteran senator who was the 2000 vice presidential nominee and made a failed bid for the White House in 2004. But Lamont, a wealthy businessman, claims he is finding support among Democrats who want to break with President Bush and start bringing home U.S. troops.

LAMONT: It's veterans and senior citizens and teachers and young people all standing up, saying, our country is going in the wrong direction. We need a senator who is going to stand up and change the course.

SNOW: Polls show Lamont's challenge has hardly made a dent in Lieberman's lead. But new TV ads show Lieberman's camp isn't taking the challenge lightly.

(BEGIN VIDEO CLIP, LIEBERMAN CAMPAIGN AD)

LIEBERMAN: I already know that some of you feel passionately against my position on Iraq.

(END VIDEO CLIP)

SNOW: Lieberman says he's not surprised he has a primary challenge this time around, but says it is principles, not politics, forming his position on Iraq.

LIEBERMAN: I haven't done it, obviously, for political reasons, because it doesn't help me politically. I have done it because I think it's right for the security of our country.

SNOW: Lieberman also tells voters of his differing viewpoints from President Bush, as his opponent highlights their similarities. Political observers say the race is looking closer than anyone expected.

STUART ROTHENBERG, "THE ROTHENBERG POLITICAL REPORT": The challenge by Ned Lamont to Joe Lieberman, however, does demonstrate, does confirm the deep-seated emotion that Democrats against this war.

(END VIDEOTAPE)

SNOW: Both Democrats face off later this month in the first test of a race being closely watched -- Wolf.

BLITZER: Mary Snow, on the scene in Connecticut, thank you very much.

Senator Lieberman is getting some heavy pushback from liberals online as well.

Our Internet reporter, Jacki Schechner, is standing by with more on that -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, it's videos like this one, in support of Ned Lamont, that are circulating online on blogs and other political Web sites.

There's also visuals like this one: Benedict Lieberman. Liberals have been against Joe Lieberman for some time, not only his stance on the war in Iraq, but the confirmation vote for Samuel Alito.

We're seeing this circulating in local blogs and big national blogs, like Daily Kos, also fund-raising on the grassroots level online, $190,000 so far, the liberal ActBlue, also sites popping up, like DumpJoe.com. It's timetogojoe.com.

Now, we spoke to both campaigns today. Lamont's campaign says they realize that this is organic, and Lieberman's campaign says to us they don't take the constituents being unhappy lightly, but this is mostly resonating outside of Connecticut and not so much inside of the state -- Wolf.

BLITZER: We're going to watch this race closely, all the political races, right here in THE SITUATION ROOM -- thanks, Jacki.

On our "Political Radar" this Monday, an expected show of support for Congressman Patrick Kennedy -- the Rhode Island Democrat now is in rehab at the Mayo Clinic, getting treatment to an addiction to prescription drugs.

Tonight, Rhode Island Democrats are expected to endorse Kennedy for reelection during their state party convention. Kennedy's political allies are praising him for being open about after -- about his problem, after a car crash on Capitol Hill that he says he can't remember.

New poll numbers today on an issue very much on the president's radar -- that would be immigration. Our new polls suggest some mixed emotions on the issue. It shows sympathy for illegal immigrants has gone down 13 points since April, despite, or perhaps because, of those recent immigration protests across the country.

But take a look at this. Most Americans, 81 percent, say they favor allowing illegal immigrants who have been in the United States more than five years to apply for citizenship.

Still to come, the political battle over General Hayden, the new CIA chief nominee.

I spoke with Senator Lott earlier this hour. In the next hour, we will get a different perspective from Democratic Senator Ron Wyden, a member of the Senate Intelligence Committee.

But up next, raging wildfires in the Sunshine State shut down a crucial Florida highway.

Stick around. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There's a developing story we're following. Let's bring back Zain.

What are you working on, Zain?

VERJEE: Wolf, we're hearing of a shooting in Fairfax County, Virginia.

It happened at a police station at the Sully District Station in Fairfax, Virginia. It appears that several people have been hit by gunfire, including police officers. It's not clear the extent of the injuries or if there were any casualties. We also don't know how many people specifically have been hit.

We understand, though, that the victims have been taken to a hospital close by. The U.S. Park Police is using a helicopter to search for a suspect. We don't have any details about who the suspect is, what circumstances the shooting happened in. And we don't know the motive of this suspect. All we know is that several people have been hit, including police officers, at Sully District Station in Fairfax, Virginia. We will bring you more details when we get them -- Wolf.

BLITZER: All right, Zain, we will continue to track this story. Thanks.

There's another developing story we're following right now -- the White House just confirming that the president has received that letter from the Iranian president, Mahmoud Ahmadinejad, though the White House is insisting the letter does not really address the issues involving Iran's nuclear program -- the outgoing press secretary, Scott McClellan, saying it doesn't appear to do anything to address the concerns of the international community.

He adds, there are a number of concerns that the international community has with the regime, and the letter doesn't appear to do anything to address those concerns.

Those -- behind me, you see those live pictures coming in from Fort Lauderdale, where the president has just arrived. We will continue to monitor the president's visit to Florida, the reaction to this letter calling for direct talks between the U.S. and Iran -- much more on the story coming up in the next hour. Still to come this hour, the battle for control of Congress -- should Democrats prepare for a possible win by announcing their agenda right now? Jack Cafferty going through your e-mail.

And a close call and powerful pictures from a CNN crew in the troubled Darfur region of Sudan -- you're going to want to stick what Nic Robertson and his team went through. Their gripping report, that's coming up, right here, in the next hour of THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Jack's back with "The Cafferty File" -- Jack.

CAFFERTY: Six months to go before the midterm elections, the Democrats are out saying what they plan to do right away, should they win control of the House of Representatives. Their plan includes things like raising the minimum wage and investigating President Bush. The question is, is it time now for the Democrats to announce their agenda, assuming they win the House in November?

Frank in New York writes: "Too early? I would say it almost is too late. After 2000, the Democrats became obsessed with how President Bush 'stole' the election. Since then, they have been the anti-Bush party, with no agenda of their own. And that's a loser strategy. Now they think they have got a shot at winning Congress, and we are finally getting some solid policy ideas. It's about time."

Greg in Broomfield, Florida: "The pundits have been complaining about the Democrats not having a plan, even though they had no way of doing anything about it. Now they have a plan, and a pretty good chance of getting the power to do something with it. Stop complaining."

Dan in Portland writes: "People have short memories. If the Democrats play their trump card now, then, by November 7, most will have forgotten what was said. Save the trump card until a month before the election. Besides, the Republicans are giving the Democrats a new trump card almost every day."

Louie writes from Ohio: "A national agenda has little effect on U.S. House races. As Ohio showed in its primary this month, shrewd candidates can elevate emotion-packed social issues over real problems of education, economy, even corruption, in order to gain winning votes. It's a sad time in America."

And Hank writes from Phoenix: "Yes, now, the sooner the better, while we can still speak freely, without some military intelligence/Pentagon/CIA/NIA/NSA Negro-appointee coming through my computer or my cell phone because I said, 'Where's Osama?'" -- Wolf.

BLITZER: Jack, thank you very much.

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