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The Situation Room

Secret Phone Records; Big Brother?; Secrets and Leaks

Aired May 11, 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. here in Washington. Is a secret spy agency collecting your phone records and those of millions of other Americans? President Bush says you don't need to worry about your privacy, but Congress wants answers, and they want answers soon.

Congressman Duncan Hunter stands behind a bill that would make it a felony to aid illegal immigrants. His brother often helps, though, speaking across the U.S. border. Could one send the other to jail?

And as some Republicans keep their distance from President Bush, some hope to catch a ride on the first lady's coattails. We'll tell you why Laura Bush is welcome on the campaign trail.

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

Domestic eavesdropping already has Americans uneasy. Now there are new concerns after a "USA Today" report that the phone records of millions of Americans are being delivered into a database of a super- secret spy agency. President Bush says your privacy is being protected, but that phone record revelation is having a ripple effect, especially in Congress.

What could the government learn about you if it chooses? Brian Todd is watching that part of the story.

And when reporters break national security stories, do they weaken your security? Mary Snow is looking into that.

But we begin our coverage with our White House correspondent, Suzanne Malveaux.

The president wasted no time reacting to this story earlier this morning -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, you're absolutely right. President Bush had hoped to highlight progress since Hurricane Katrina. He was delivering a commencement speech in Mississippi. That, of course, all overshadowed, and a clear sign that this is no longer business as usual at the White House. President Bush responded immediately to this controversy. (BEGIN VIDEOTAPE)

MALVEAUX (voice over): In an extraordinary move just hours after the controversy erupted, the White House put the president in front of the cameras.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're not mining or trolling through the personal lives of millions of innocent Americans. Our efforts are focused on links to al Qaeda and their known affiliates.

MALVEAUX: Careful not to confirm or deny the story, Mr. Bush rebutted any suggestion that the government was breaking the law or violating civil liberties.

BUSH: The government does not listen to domestic phone calls without court approval.

MALVEAUX: Last December, the president did confirm he authorized the National Security Agency, or NSA, to listen to calls to and from the United States involving suspected terrorists without court approval. That set off a firestorm of controversy for members of Congress who said they weren't adequately consulted about the NSA surveillance program.

Democrats pounced on today's news to call for a renewed set of investigations into whether the president acted outside of the law.

SEN. PATRICK LEAHY (D), VERMONT: Only through the press are we beginning to learn the truth. The secret collection of phone calls records tens of thousands of Americans. Now, are you telling me that tens of millions of Americans are involved with al Qaeda?

MALVEAUX: Republicans quickly jumped to the president's defense.

SEN. JON KYL (R), ARIZONA: This is nuts. We are in a war, and we have got to collect intelligence on the enemy. And you can't tell the enemy in advance how you're going to do it.

MALVEAUX: The controversy could complicate the president's efforts to get his nominee for CIA director, General Michael Hayden, confirmed by the Senate. Hayden was the former head of the NSA.

SEN. CHARLES SCHUMER (D), NEW YORK: The administration has an obligation to let us know what it has done, how extensively it has done it. And General Hayden is in a position to know.

MALVEAUX: Hayden, who faces Senate confirmation hearings next Thursday, tried to head off the controversy.

GEN. MICHAEL HAYDEN, CIA DIRECTOR NOMINEE: Everything the NSA does is lawful and very carefully done, and that the appropriate members of the Congress, the House and Senate, are briefed on all NSA activities. And I think I'd just leave it at that.

MALVEAUX: Despite the controversy, some believe there will be little political fallout.

RON BROWNSTEIN, "LOS ANGELES TIMES": The public is willing to accept very tough steps to reduce the risk of another terrorist attack.

(END VIDEOTAPE)

MALVEAUX: And that, of course, is what the administration is counting on to get through this latest controversy -- Wolf.

BLITZER: So are you suggesting that officials there at the White House are -- think this is a winning issue, a winning political issue for them to get into a fight with Democrats and some Republicans over the surveillance program?

MALVEAUX: You know, Wolf, they certainly hope so. They know that this is going to be a messy situation when it comes to those confirmation hearings. They ultimately believe that Hayden is going to be confirmed by the Senate, but they also believe, if you look back in December, that the American people are on their side when it comes to this, that ultimately they're not going dust up a little bit too much because they believe that if they make this case a one-two punch, that it's about your protection, your security, and also that it's lawful, that Americans will side with the president.

BLITZER: Suzanne at the White House.

Thanks very much.

Brian Todd is also watching this story, including what the government hopes to learn by this extensive monitoring program -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, there are some who say that this nightmare scenario in this nearly 60-year-old book by George Orwell called "1984" has come to pass. One former intelligence official won't go that far, but did give us a fascinating picture of what the NSA can do.

(BEGIN VIDEOTAPE)

TODD (voice over): Finding out who you call, when, and for how long, an ominous intelligence-gathering capability. At the National Security Agency, experts say that's just the beginning.

GEORGE BAURIES, FMR. FBI COUNTERTERRORISM OFFICIAL: So they actually have the ability to collect massive amounts of data.

TODD: George Bauries is a former FBI counterterrorism official who also worked with the NSA in counter-intelligence operations. Bauries says the NSA can also collect your credit card and ATM records, airline and other travel data, medical and educational records.

BAURIES: They don't disclose exactly where it's stored, how it's stored. It's just that all the data is stored and that anything that would be sent electronically...

TODD: And so-called spyware you might use to protect your information is, Bauries says, meaningless.

BAURIES: Any locks on files, any method of encryption, any of the over-the-counter programs that are openly available to the general public, that would not have the ability to stop the NSA.

TODD: That's what Bauries says the agency can do. How often does it tap into that information? Contacted by CNN, an NSA spokesman wouldn't respond to that question or Bauries' claims, sticking to a statement reading in part, "It would be irresponsible to comment on actual or alleged operational issues."

Both the NSA and George Bauries say the agency is extremely careful not to overstep the law if it feels the need to go beyond external records and monitor the content of a transmission. But privacy advocates say this is just too close to George Orwell's big brother is watch you scenario.

NANCY LIBIN, CENTER FOR DEMOCRACY & TECHNOLOGY: With all of that information, the government could, theoretically, create a large database and digital dossiers, if you will, about your personal interactions, your social networks, and really paint a very rich portrait of your personal life.

(END VIDEOTAPE)

TODD: How effective is all this data gathering in the war on terror? That's debatable, too. One former intelligence official says this capability has hurt al Qaeda, but he says the terrorist group has also adapted to stay one step ahead by using disposable cell phones and relying much more on human contact -- Wolf.

BLITZER: All right, Brian. Thanks very much.

And these new revelations about domestic spying are only the latest in a series that have resulted from leaked information.

CNN's Mary Snow is joining us from New York with this part of the story -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, this latest story resurrects an ongoing debate, and at the heart of it, is this weakening the government's fight on terror or protecting the people's right to know?

(BEGIN VIDEOTAPE)

SNOW (voice over): President Bush signaled too much information is being made public.

BUSH: Every time sensitive intelligence is leaked it hurts our ability to defeat this enemy.

SNOW: But Democratic Senator Patrick Leahy argued the Republican-led Congress isn't seeking enough information about spy programs.

LEAHY: The press is doing our work for us, and we should be ashamed of it. Look at this headline.

SNOW: That "USA Today" headline of the NSA collecting Americans' phone records comes on the heels two of pieces of reporting on spy programs that have ignited controversy. In November, "The Washington Post" reported on secret CIA prisons in Europe. In December, "The New York Times" reported on government eavesdropping of some calls. With both came consequences.

HOWARD KURTZ, CNN'S "RELIABLE SOURCES": This is the first time since the Nixon administration, and in some cases the first time ever that prosecutors are issuing subpoenas, threatening jail terms in order to find out who the sources are for journalists, and in an effort, I would have to say, to choke off these sources of information when it comes to national security.

SNOW: Media observers say leaks play an important role in finding out what goes on behind closed doors in government.

THOMAS PATTERSON, KENNEDY SCHOOL OF GOVERNMENT: We all understand the need for secrecy. We all understand that some things are properly classified. But it's also the case that you can use the classification system to hide actions that are either illegal or ill- advised.

SNOW: Opinions over reporting on controversial spy programs are so divided that as reporters for "The New York Times" and "Washington Post" were awarded Pulitzer prizes, conservative commentator Bill Bennett said they should be put in prison.

(END VIDEOTAPE)

SNOW: Some media observers describe the environment created by the clash between government and journalists as, in their words, "chilling". And they don't rule out the possibility that "USA Today" reporter Leslie Cauley may also face subpoenas -- Wolf.

BLITZER: I'm sure they're very nervous about that at "USA Today" right now.

Mary, thanks very much for giving us that perspective.

Jack Cafferty is also in New York. He's got his perspective in "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Unbelievable the stuff that's going on.

So as you on doubt heard, there's a pretty good chance the government has your phone call records. The size of the program is staggering.

One source told "USA Today" it is "the largest database ever assembled in the world." And the goal of the National Security Agency is to create a database of every telephone call ever made within the nation's borders. Now, there's a good idea.

Our lawmakers are fired up, or so they say. There are members of both parties demanding answers from the Bush administration, although the congressional oversight of all this stuff that they've been doing has been sorely lacking.

The front page story in "USA Today," the all pretend to be outraged. But, you know, where the hell have they been for the last couple of years?

The president says the government has done nothing wrong. The privacy of ordinary citizens is fiercely protected.

And there were weapons of mass destruction in Iraq.

Now, if the government knows who you call and when you call them, the numbers you call, that's a real short step to finding out the name and address of the person you called and who knows what else. Three of the nation's largest phone companies apparently voluntarily complied with these requests by the NSA to make all this information available. I think it was AT&T, Verizon, and I want to say BellSouth.

BLITZER: That's right.

CAFFERTY: The only one who said no was Qwest.

The question is this: Do you plan to do anything about your phone company giving personal information about you to the government without your knowledge or your permission? You can e-mail your thoughts to caffertyfile@CNN.com or go to CNN.com/cafferty file.

Double-check me on that, Wolf, because I don't want to make a mistake to somebody's reputation. Was it BellSouth, the third one?

BLITZER: Yes. And Qwest was the only one who denied the government's permission.

CAFFERTY: Who said no. Yes -- OK.

BLITZER: All right. Thanks, Jack. We'll get back with you soon.

Extensive coverage of our top stories still to come. Also, other stories we're following.

Immigration reform. Specifically, the Senate agrees on a new deal that includes a path towards citizenship and a guest worker program.

And we'll take a closer look at a family divided over this issue. A powerful congressman and his brother working on opposite sides of the debate.

Also, first lady politics. Her husband may be sinking in the polls, but the most popular person in the White House right now is a huge hit on the campaign trail. And chopper crash on the high seas with a surprising ending. It's an amazing story of survival. We're going to show you step by step by step what happened and how they survived.

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

(COMMERCIAL BREAK)

BLITZER: And this just coming in to CNN, a story that hits close home. The nation's capital is on alert right now for tornadoes.

We're watching the skies here in Washington, D.C., in the greater D.C. area, and the forecast.

Let's check in with our meteorologist, Rob Marciano.

(WEATHER REPORT)

BLITZER: Congress is poised to break the logjam that stalled immigration reform. Senate leaders say they've reached a deal on the makeup of a conference committee that will reconcile the Senate bill with the House bill. They're very different. And they say they've agreed on it in principle on limiting the number of amendments that can be attached.

Look for senators to resume work on the bill on Monday. The immigration debate has revealed a very deep divide between one member of Congress and his own brother. Representative Duncan Hunter of California has helped lead the charge in the House to make illegal immigration a felony, while his own brother is fighting to say the lives of immigrants themselves.

CNN'S Chris Lawrence is joining us now live from Los Angeles with this story -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Wolf, it's a great example of how divisive immigration reform can be when even families can't agree on this issue.

(BEGIN VIDEOTAPE)

LAWRENCE (voice over): Two brothers separated by 2,000 miles and their opinions on illegal immigration.

REP. DUNCAN HUNTER (R), CALIFORNIA: It's a national security issue.

LAWRENCE: Congressman Duncan Hunter is in Washington, where he'll have a chance to negotiate a compromise with the Senate. The California Republican helped pass a House bill that toughened penalties on illegal immigrants and those who help them.

JOHN HUNTER, CONGRESSMAN'S BROTHER: My wife and I talked about it a little bit and we said we'd break the law if it came down to it.

LAWRENCE: His brother John is on the Mexican border helping illegal immigrants. John builds water stations in the California desert to help thirsty migrants who cross the border in between a giant fence Duncan wants to expand.

D. HUNTER: You have to have a border. And to have a border, you have to have an impediment.

LAWRENCE: Duncan Hunter refused to support John's plan to build cell phone towers so stranded migrants could call for help, but he did help John get official permits for those water stations.

J. HUNTER: He's really a great brother.

LAWRENCE: And they actually agree that an open border makes no sense.

J. HUNTER: On the other hand, I don't think they should die, the penalty for wanting an $8 an hour job should be death.

LAWRENCE: John shows us a cemetery and the graves of unidentified migrants who died crossing the border illegally. John blames immigration policy, not people, especially Duncan.

J. HUNTER: In fact, Duncan's one of the few guys I really, really admire in the political arena. I really admire him.

LAWRENCE: Even when they end up literally on opposite sides of the fence.

(END VIDEOTAPE)

LAWRENCE: Yes, John says they agree on just about everything else. And if the House and Senate can compromise, he's sure he and his brother can find some sort of middle ground -- Wolf.

BLITZER: All right, Chris. Thanks very much.

Meanwhile, the tide continues to flow across the border. Authorities in Laredo, Texas, found 56 illegal immigrants locked in the back of an abandoned refrigerator trailer truck. Authorities say the group had been inside for about six hours and were found huddled together for warmth. None of them was injured.

Still to come tonight in THE SITUATION ROOM, lawful or awful? The NSA has been going through your phone records. We're taking a closer look at the political and the legal fallout.

And can you sue your own phone company?

Plus, humanitarian disaster. We're taking you to the border of Sudan, where refugees in desperation are spilling over. This is a story you're going to see only here on CNN.

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

(COMMERCIAL BREAK)

BLITZER: There she is. Zain Verjee, she's standing by at the CNN Center with a quick look at some other stories making news.

Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf.

The Senate's just passed a tax cut package that extends tax breaks on capital gains and dividends for another four years. It's a $70 billion package. The final vote was 54-44 along party lines.

Some Senate Democrats criticized the bill as favoring the rich. The bill passed the House yesterday. President Bush is expected to sign the measure.

Iran's president now says he wants to talk things over. Today, President Mahmoud Ahmadinejad says he seeks dialogue with the Bush administration over the nuclear standoff. And Ahmadinejad says his recent 17-page letter to President Bush is simply a way to spark discussions. But the Iranian president also warns that threats to force Iran to comply with international demands could backfire.

A grand jury indicts the governor of Kentucky. Governor Ernie Fletcher is accused of illegally paying back his political supporters with state jobs.

Among the charges the governor faces, conspiracy and official misconduct. The governor maintains that he's done nothing wrong. Last year he pardoned his entire administration but not himself for any charges that could result from the probe.

And a jury in Ohio says a Roman Catholic priest strangled and repeatedly stabbed a nun in a hospital chapel just before Easter 26 years ago. Today, the Reverend Gerald Robinson was found guilty of murdering the nun. Prosecutors contend that Robinson stabbed the nun 31 times, inflicting wounds in the shape of an upside down cross.

Robinson is sentenced to life in jail. He'll be eligible for parole in 15 years -- Wolf.

BLITZER: What a horrible story. Thanks very much, Zain. Zain, we'll get back to you.

Just ahead, the politics of new domestic spying revelations. We'll talk about it in our "Strategy Session" with Paul Begala and J.C. Watts.

Plus, some gripping video of a helicopter crash at sea. It happened during a military training drill. We're going to show you what happened and explain how people survived.

You'll want to see this. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington. Let's get back to our top story. A published report today says the National Security Agency has been tracking the records of millions of Americans' phone calls since 9/11. Some members of Congress already are raising red flags, but will the American public be outraged?

Our senior political analyst, Bill Schneider, is joining with us some answers -- Bill.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Wolf, in the debate between fighting terrorism and protecting civil liberties, the public is divided. Will the latest revelations tip that division one way or the other?

(BEGIN VIDEOTAPE)

SCHNEIDER (voice over): The revelations last winter were about wiretaps of international calls with people suspected of terrorist activities. The public was divided. In one poll, slightly opposed. In another poll, slightly in favor.

Now new revelations are being reported.

LESLIE CAULEY, BUSINESS REPORTER, "USA TODAY": They are collecting what is known as call detail records, and this is simply the listing of the actual numbers dialed. Incoming, outgoing are being tracked.

SCHNEIDER: "USA Today" says the government is keeping records of domestic calls made by ordinary American citizens, not just people suspected of terrorist activities.

Is it listening to those calls?

BUSH: The government does not listen to domestic phone calls without court approval.

SCHNEIDER: So it's not eavesdropping, but according to the newspaper report it is snooping. What is the government doing with all that information? That's not clear.

CAULEY: The explanation put forth by NSA is simply that they are -- it is a part of a counterterrorism campaign.

SCHNEIDER: In polls taken over the last four years, Americans have said by 2-1 margins that the government should not take steps to prevent additional acts of terrorism if they would violate people's basic civil liberties.

As of February, however, the public did not think that had happened. Over 60 percent said government anti-terrorist programs had taken away very little or none of their privacy. The new revelations could change that.

The president also made this point.

BUSH: So far, we've been very successful in preventing another attack on our soil.

SCHNEIDER: Does the public believe government wiretaps of overseas calls involving suspected terrorists have prevented some acts of terrorism? Yes, it does. But it may be harder to convince people that collecting records of domestic calls between ordinary citizens will do much good.

(END VIDEOTAPE)

SCHNEIDER: The president said, quote, "We are not mining or trolling through the personal lives of millions of innocent Americans." But he did not say what they are doing -- Wolf.

BLITZER: Bill Schneider reporting for us. Thank you, Bill.

And whatever the public response proves to be, the Bush White House appears to have formed a quick response strategy in dealing with the phone records story.

(BEGIN VIDEOTAPE)

BLITZER: Joining us now, our CNN political analysts, Democratic strategist Paul Begala, and former Republican Congressman J.C. Watts.

Let me play this brief clip on the how the president justified this story today. Listen to this.

(BEGIN VIDEO CLIP)

BUSH: Our intelligence activities strictly target al Qaeda and their known affiliates. Al Qaeda is our enemy, and we want to know their plans.

(END VIDEO CLIP)

BLITZER: All right, what is wrong, Paul, with that?

PAUL BEGALA, CNN POLITICAL ANALYST: Nothing.

BLITZER: I mean, the president wasted no time coming out.

BEGALA: Right.

BLITZER: A smart strategy, I assume.

BEGALA: Well it tells me that they think this is a big problem, right? You don't put the president out unless you have some real damage to contain or a real victory to celebrate.

BLITZER: So, they saw this was a potential problem? So, they got him out there quickly.

BEGALA: They got him out quickly. Good for them.

BLITZER: And he then quickly made the case: You know what? We're trying to prevent another 9/11. BEGALA: Well, and, in fact, he went on to say -- and I wrote this down -- "we're not mining or trolling through the personal lives of millions of Americans." Now, that's extraordinarily defensive.

BLITZER: Smart strategy for him to come out so quickly?

J.C. WATTS (R), FORMER U.S. CONGRESSMAN: Wolf, again, think about this. The last four or five months, the White House, they have been behind two steps on everything. I think it was a good strategy to put him out, Paul.

I have said all along that, you know, you don't, you know, wait, you know, four or five days to try to address this. I think you get out there. They had some trouble with this in the past, so they knew what kind of firestorm this would create. So, they put the president out there to talk about it.

The president said he was not, you know, rolling through numbers. And I called someone over at the -- in the House today that I -- who I trust them, and I put a little credibility in what they say. They said, "no U.S. citizens rights were violated. It was done in the framework of the law. Appropriate people in Congress were informed."

That has been the framework of supporting this thing all along. So, it doesn't seem to be anything different than what we were arguing about two months ago.

BLITZER: I was surprised, as a result of what you just said and what a lot of others have said, by what the House majority leader, John Boehner, said earlier this morning. I want to play that clip. Listen to this.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), HOUSE MAJORITY LEADER: I am concerned about what I read with regard to this NSA database of phone calls. I don't know enough about the details, except that I'm going to find out, because I'm not sure why it would be necessary for us to keep and have that kind of information.

(END VIDEO CLIP)

WATTS: Well, Wolf ...

BLITZER: He's the majority leader.

WATTS: But I think he didn't -- he hasn't said anything inconsistent than what I think we have all talked about.

Yes, we don't know a lot of the details. But, again, I think it gave me some confidence in talking to the people in the House, the people who are in the intelligence community, that said it was within the framework. No Americans were violated. Members of Congress and the appropriate places, they were briefed on this issue.

BLITZER: All right. WATTS: So, that gives me a little more comfort, in spite of the fact I don't know the details.

BLITZER: You want to respond?

BEGALA: Here's the risk. We don't know the details. I suspect it is worse, not better, than what we already know. But there's no way to really know that right now.

But if, in fact, "USA Today" is right -- and the White House doesn't deny this, that the number is in the tens of millions -- published public intelligence reports suggest that al Qaeda has maybe 20,000, maybe 50,000 people in the whole world, most of them not in America. How the heck do you justify going through the phone records of tens of millions of Americans...

BLITZER: Here's the...

BEGALA: ... to try to get one 6'5" Arab hiding out in Pakistan?

BLITZER: Hold on. Hold on one second. Here's the problem that Democrats face right now. And we saw it in Bill Schneider's poll numbers, that the American public is pretty much split on this issue about domestic surveillance, the warrantless wiretaps.

There have been no polls on this latest development, but on that.

BEGALA: Right.

BLITZER: The argument is, if it is going to prevent another 9/11, Americans are willing -- at least a lot of Americans are willing to let some of their privacy lapse.

BEGALA: That's a very good point. And the Democrats are going to have to point out that this is a classic Republican move, not a national security move. Big government is getting into bed with big business.

We're talking about AT&T, Verizon and BellSouth. AT&T, by the way, wants to take over the Internet and start charging for access to the Internet, which Internet pioneers desperately oppose.

So, now, if you are running AT&T, and the president of the United States comes to you and says, hey, why don't I spy, why don't I snoop through your files there, and you want him to give you permission to control the Internet, that's a really lousy alliance politically for the Republicans, to be seen as big government in bed with big business.

BLITZER: Is it going to hurt Michael Hayden, General Michael Hayden, who ran the NSA for years, and is now up for CIA director?

WATTS: Well, Wolf, I think this obviously gives the opposition more fodder, if they want to make hay with his nomination.

However, I think you're going to see Hayden standing on those three pillars. They didn't violate any American citizen. We did it within the boundaries of the law. And we informed the appropriate people in Congress on the Republican and the Democrat side.

Now, Paul, you're talking about big business. How many people do we have in this country? Two hundred and eighty million people?

BEGALA: That's right.

WATTS: You know, if they sold those numbers to the government -- and did they sell the numbers to the government?

BEGALA: We don't know.

WATTS: Well, if they did...

BEGALA: I bet you they gave them.

(LAUGHTER)

WATTS: I want my one-280-millionth of that paycheck.

(LAUGHTER)

BLITZER: Very quickly, is Howard Dean in trouble?

BEGALA: No. I think Candy's report was spot on.

He -- yes, he's in trouble in that campaign managers, candidates, are really angry with him. He has raised $74 million and spent $64 million. He says it's a long-term strategy. But what he has spent it on, apparently, is just hiring a bunch of staff people to wander around Utah and Mississippi and pick their nose. That's not how you build a party. You win elections. That's how you build a party.

BLITZER: All right, we got to leave it there, guys, because we are out of time. Paul Begala...

WATTS: I can't comment on the good one?

(LAUGHTER)

BLITZER: No. Next time.

BEGALA: On my party's problems.

(LAUGHTER)

BLITZER: Paul Begala and J.C. Watts are part of the best political team on television.

(END VIDEOTAPE)

BLITZER: And Ali Velshi is part of that team as well. He's looking into the story of your phone records and the government's efforts to find out what's going on. Ali, what's the "Bottom Line"? ALI VELSHI, CNN ANCHOR: Hey, Wolf, the Telecommunications Act says specifically that companies have a duty to protect information, especially information that could be traded to third parties. And there's no line in that act that says it's OK to share information even if it's to fight terrorism.

(BEGIN VIDEOTAPE)

VELSHI (voice-over): It would appear that handing your information to the government, something that AT&T, BellSouth and Verizon are reported to have done, is illegal, unless the companies had a side deal which protected them from prosecution. Since none of the companies would confirm or deny any involvement citing national security concerns, we don't know if anything illegal happened, but did something unethical happen?

AT&T's privacy policy states, "We must disclose information when requested to comply with court orders or subpoenas." But AT&T won't tell us whether they've received court order or a subpoena. They do say, however, "We will also share information when necessary to prevent unlawful use of communication services."

BellSouth says, "Every action we take reflects the highest ethical standards. We interact with our customers, our employees and our shareholders with honesty and integrity."

Verizon's Web site expresses similar sentiments.

While customers may feel their privacy was violated, one securities attorney feels that shareholders should have been consulted on a decision this important.

TOM AJAMIE, SECURITIES ATTORNEY: You don't have to tell them day to day how much money you're spending on photocopies and how much the pencils cost, but if you're in a large-scale spying program where millions and millions of people's data is being turned over to the spy agencies of the government, that's significant and that should be disclosed.

VELSHI: But this telecom analyst says when the government calls, a company has to do its duty.

SCOTT CLELAND, TELECOM ANALYST: Why does a company cooperate? Why do, you know, citizens cooperate when the policeman asks them information when they're trying to grab a bad guy? You know, it's basically, you know, citizens, you know, duty to cooperate with the government in legal activities.

VELSHI: Whether or not it's legal, if AT&T, BellSouth and Verizon did give information to the government, they should have let their shareholders choose to agree or sell their shares.

AJAMIE: Now not only is this not consistent with the mission of these companies, they're supposed to phone companies. They're not supposed to be spying companies.

(END VIDEOTAPE)

VELSHI: We tried to confirm reports, Wolf, that money was exchanged for the data, but we couldn't do that, because that too would apparently compromise national security. Here's the "Bottom Line": business in America works because it's transparent. If we can't follow the money, that's a big problem. A message to public companies: Shareholders own your companies and they have a right to know everything -- Wolf.

BLITZER: And some of those shareholders are going to be upset tonight, Ali.

VELSHI: Yes.

BLITZER: Thanks very much for that report.

BLITZER: And this just coming in. The nation's capital getting hammered by severe weather right now, and it may affect your travel plans. Let's bring back Rob Marciano. He's got the latest -- Rob.

(WEATHER REPORT)

BLITZER: We'll show our viewers a picture of the U.S. Capitol. Take a look at this, heavy, heavy, cloud cover and fog. You can barely make out the U.S. Capitol. If you look closely, we'll watch the severe weather here in Washington D.C. and the metropolitan area.

Up ahead, a look at whether you could sue your phone company for giving up phone records. We're going to show you what's going on on that front. Also, the first lady gets political. She's hitting the campaign trail as her husband's popularity drops. Find out why she's in high demand.

Plus, check this out, a deadly chopper crash at sea. We'll show you exactly what happened and the surprising number of survivors. Stay with us.

(COMMERCIAL BREAK)

BLITZER: This is a travel day for the first lady, Laura Bush. She spoke today at Vanderbilt University in Nashville. It's part of her stepped-up schedule in this congressional election year. The White House has good reason to try to put her out as often as possible. Our new poll numbers simply prove that. Let's bring in our national senior chief correspondent, national correspondent, whatever you are. John King, joining us live. John?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: It's interesting, Wolf. A commencement speech today but more often than not if she's out of town these days, the first lady is out on the campaign trail. And it's quite different, quite striking an increased role for her at a time many Republicans don't want the president to come to town.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Let's give a warm welcome to Congressman Christopher Shays and Mrs. Laura Bush.

KING (voice-over): There's no question this member of the Bush family is welcome on the campaign trail, and for good reason. First lady Laura Bush remains popular as a time her husband is not. A 61 percent approval rating in a new CNN poll, compared to 34 percent for the president. That translates into a higher profile on the campaign trail, especially in places where the president's standing is especially poor.

LAURA BUSH, FIRST LADY: Here in Connecticut, there are few advocates for young people as tireless as Congresswoman Johnson.

KING: Her midterm campaign stops so far include Pennsylvania, Maryland, Colorado, North Carolina, New Mexico, Missouri, Connecticut, Ohio and Kentucky. Her fund-raising totals nearing the $7 million mark.

Amy Walter tracks congressional races and says, more often than not, the first lady's stops are in suburban areas where moderate swing voters, especially women, are mad at the president yet critical to Republican chances this year.

AMY WALTER, COOK POLITICAL REPORT: So the person you want to bring up to help you with fund-raising from the White House, somebody who gets a lot of attention, brings the access and the star power of the White House, but doesn't bring the political baggage is the first lady.

KING: Still, Mrs. Bush is not immune from the administration's political slump. That 61 percent approval rating now is down 20 points from January. But her standing is still much higher than the president or vice president. And so Democrats expect to see more of her in key races.

LISA CAPUTO, FMR. HILLARY CLINTON PRESS SECRETARY: Republican operatives are now probably looking at her approval ratings and saying to themselves, well, how can we start to use her out on the campaign trail to help us in areas of the country where we're in trouble?

(END VIDEOTAPE)

KING: The president actually made a joke about this at a recent fund-raiser saying the congressman, just as he was coming up to speak, said, "Why don't you stay home and send Laura instead?" Increasing to know, Wolf, she is in demand, what will be interesting as we move from the fund-raising season of the spring into the summer and the fall, will she campaign side by side with candidates? Will she get more engaged on the issues as well? Will her role change to per more message than money? It will be interesting to watch.

BLITZER: Our chief national correspondent, John King. John, thanks very much.

Now some intense video of a helicopter crash in Russia. When you see this, you might be amazed that anyone could survive. Zain Verjee is joining us now with the pictures and the story. This is amazing stuff, Zain.

ZAIN VERJEE, CNN ANCHOR: It is, Wolf. One person though did die shortly after the crash. But as you're about to see, the results could have been much worse.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): A joint drill between Russian and Japanese rescue crews off the coast of Russia's far east Sakhalin Island turned into an ugly accident. This Russian M-14 helicopter was among five taking part in the mock rescue operation.

Everything was going according to plan until something went drastically wrong. The chopper suddenly appears unsteady, loses altitude and makes a hard landing in the water. For several seconds it looks as if everything might be OK as the helicopter bobs about and suddenly it tips forward, the rotor blade strike the water, and the helicopter literally breaks apart.

The 13 people onboard are quickly plucked from the frigid water by rescue boats taking part in the drill. Amazingly, only three people were injured. One of them, a pilot, died on the way to the hospital.

(END VIDEO CLIP)

VERJEE: Russian officials say five of the 13 people on the helicopter were crew members. The rest worked for the country's civil aviation agency. Wolf?

BLITZER: Amazing, amazing stuff. Zain, thank you for that.

Still here tonight in THE SITUATION ROOM, you can sue your phone company for giving the government your phone records or can you? We have the answer to that, plus Jack Cafferty is taking your e-mails. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Jack's in New York with "The Cafferty File" -- Jack.

CAFFERTY: Wolf, the question is, do you plan to do anything about your phone company giving personal information about you to the government without your knowledge or permission?

Allie in Laguna Hills, California. "I called Verizon today to protest their release of private information and to demand that my personal information not be supplied to anyone. Amazingly, the representative had not heard about any scandal, and claimed I was the first call they'd received on it. What are the people waiting for?"

Linda in St. Augustine, Florida: "Well, as a matter of fact, Jack, I am planning to do what we Americans do best -- shut up and go shopping, except I'll be shopping for a new phone company this weekend. And after 35 years, I'll be saying adios to BellSouth on Monday. Suzanne writes: "Yes, I intend to switch telephone providers to the company that doesn't sell out its customers to the big brother bunch currently in power. No one in this administration shows any respects for our laws and freedoms, and it's tragic that we're being subjected to this modern-day McCarthyism."

C. in Thousand Oaks, California: "I'm going to praise my phone company, Verizon, for having America's best interests at heart in helping our government fight the war on terrorism. As distasteful as this effort to defend our country might sound to you, Jack, you fail to realize we are at war with an unseen enemy."

Kyle in Denver: "I'm a Qwest customer. I'm pleased with the fact that they refused to provide the government with personal information. People need to stand up to their phone service providers in the same way someone would stand up to anyone releasing their private information."

And Ray in Texas writes: "Jack, my garbage man has the same records. Like most people, I throw my phone bill away every month. Who cares? If someone wants to call my mother-in-law, go ahead." Wolf.

BLITZER: Jack, see you tomorrow. Thank you very much.

Let's bring in our senior Internet producer and legal expert Alex Wellen. He's been looking at this notion of suing these phone companies. What do you say?

ALEX WELLEN, CYBER LAW EXPERT: Well, you can sue. We're seeing it play out in California with this AT&T suit. With AT&T, what's happening is the customers are going after AT&T and saying a few months back that the NSA gave them vast amounts of information concerning e-mail, concerning telephones, concerning these telephone records that we're talking about in the news today.

One of the arguments, Wolf, that they're making is that they violated the Fourth Amendment. How does AT&T violate the Fourth Amendment? Well, they say that they're an agent of the government. They say that AT&T is the same as the government, and as a result they're violating this unreasonable search and seizure. There are also federal laws that deal with intercepting information. There are state laws that deal with deceptive trade practices.

The point is that these things are out there. We're seeing a case in California, we want to follow it closely, and this will lend some insight, some precedent into whether people can sue in the future.

BLITZER: I suspect there is going to be a lot of angry people out there and a lot of lawsuits coming up as well. Alex, thank you very much for that.

And still ahead, an exclusive report on the humanitarian disaster spilling over from Sudan. You'll want to see this. Stay with us.

(COMMERCIAL BREAK)

BLITZER: There's a potentially significant new development tonight in the Darfur crisis. An African Union official says a key rebel group that refused to sign on to a peace agreement last week is now reconsidering. Meanwhile, the crisis, which the U.S. government calls a genocide, has spilled well beyond Sudan's boards. CNN's senior international correspondent, Nic Robertson, has an exclusive report from neighboring Chad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): In a dusty, crowded displaced person's camp in Chad, about 50 miles from the border with Sudan, Jan Egeland, the U.N.'s top humanitarian relief official, came to show the world how the problems of Darfur are spreading.

JAN EGELAND, U.N. HUMANITARIAN CHIEF: We're on the frontlines of humanity here. It's very difficult to aid for these people, and it's also very dangerous to aid these people.

ROBERTSON: Fourteen thousand Chadians, all displaced inside their own country by Arab fighters crossing from Sudan, according to Egeland.

EGELAND: This problem is exported from Sudan. It was the ethnic militias, probably the Arab ethnic militias, so-called Janjaweed.

ROBERTSON (on camera): From Sudan?

EGELAND: From Sudan, and displaced all of these people.

ROBERTSON (voice-over): Chadian troops stand guard during Egeland's visit, but the area is so close to the border, Sudanese rebels seek sanctuary and support in Chad while the Janjaweed, backed by the Sudanese government, appear to cross the border and raid villages with impunity.

MARC M. WALL, U.S. AMBASSADOR TO CHAD: Borders don't mean very much, though, in this part of the world.

ROBERTSON: So far, about 50,000 Chadians have been forced from their homes. And without a deterrent force, attacks continue.

In the same village, Egeland also visited a refugee camp, crammed with Sudanese families, many who fled across the border from Darfur more than two years ago. An indication of the complexity of the aid problem here -- refugees, displaced people, and locals all compete for the same resources.

Nic Robertson, CNN, Dosbieda (ph), Chad.

(END VIDEOTAPE)

BLITZER: And happening now here in the nation's capital, you're looking at a live picture of what's happening in Washington, D.C. and the greater area. Severe weather bearing down, tornado watch is in effect. If you're stuck in an airport, this might be the reason why.

Let's go up to New York. Paula Zahn is standing by. Hi, Paula.

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