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The Situation Room

Tax Cut Extension and Republican Party Politics; Domestic Spying Under Scrutiny; Defensive Moves in Immigration Wars

Aired May 17, 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 Ali.
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, a tax cut extension. It's now signed and sealed. Will it help deliver Republican support for President Bush? It's 4 p.m. here in Washington. We're watching the bottom line for taxpayers and for election year politics.

Also this hour, domestic spying under new scrutiny. The Bush administration briefs key lawmakers on controversial surveillance tactics. Will it make confirmation any easier for the president's choice to be CIA chief?

And new shots and defensive moves in the immigration wars. Protesters are targeting Congress right now, and political guru Karl Rove is targeting members of the president's party.

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

On Capitol Hill right now, domestic spying, American's phone records and privacy questions all being discussed behind closed doors. The Bush administration is briefing members of the Senate and House Intelligence Committees on National Security Agency surveillance. This comes amid an uproar over the NSA'S reported tracking of millions of phone call records.

And it comes on the day before the confirmation hearings for the CIA Director nominee General Michael Hayden. He's expected to be grilled about his leading role in the NSA secret spying program.

Let's begin our coverage this hour with our congressional correspondent Andrea Koppel.

Andrea, first of all, where are you?

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: I'm outside the Senate Intelligence Committee, Wolf. And we're waiting for senators to leave that briefing that they've been having with the current director of the NSA.

You know, this is a briefing that Democrats had been demanding for months. They were told by the White House and by the chairman of both the Senate and the House Intelligence Committee that they wanted to keep the number of people briefed limited because they were concerned about leaks. Then suddenly, late yesterday, press releases went all around town saying that they had changed their mind, essentially reversing course now.

And, as you might imagine, Democrats, while welcoming this move, have also raised questions, wondering whether or not this was an attempt to try to take the edge, if you will, off very blunt and direct questions to General Hayden tomorrow.

I sat down with the chairman of the Senate Intelligence Committee, Pat Roberts, a short time ago. And he said, really, the reason that they decided to expand this briefing had more to do with the leaks that have already come out into the media.

(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R), INTELLIGENCE CHAIRMAN: Basically, I think the worry was about leaks. Well, now we have a situation where many in the media have -- we have leakers who talk to many in the media. And then there's been a cascade of misinformation. So I think part of the administration's concern -- part of my concern -- is that we need to brief the full committee, so that everybody is aware this is legal, it's highly scrutinized and we're conducting oversight like we did with the subcommittee. That just made sense to me.

(END VIDEO CLIP)

KOPPEL: Now during tomorrow's hearing before the Senate Intelligence Committee, General Hayden is expected to be grilled about the warrantless wiretaps, the program that he directed when he was over at the NSA. He's also expected to be grilled about the report that came out last week that the U.S. government had gotten millions of phone records of Americans, and this was a program also that was coming out of the NSA.

Nevertheless, we are hearing both from Democrats and Republicans, Wolf, that this nomination is not in jeopardy. Yes, there will be some very heated questions. But they expect perhaps even by the time they recess tomorrow afternoon, that the Intelligence Committee may vote on the Hayden nomination -- Wolf.

BLITZER: Andrea, thanks for that.

And this note to our viewers, CNN will bring you live coverage and analysis of General Hayden's confirmation hearings. I'll be right here anchoring a special edition of THE SITUATION ROOM. Our coverage begins at 9:25 a.m. Eastern tomorrow morning. Please join us for that.

The embattled Bush administration is getting a bit of political relief today. The president signed a $70 billion tax cut extension bill into law with GOP lawmakers crowded around him. It's one thing he and many Republicans can agree on at a time when they're disagreeing about a lot of other things.

Let's bring in our White House correspondent Elaine Quijano -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well Wolf, the White House and Republicans believe that by highlighting this victory on tax cuts, that can help on a number of fronts, particularly at a time when there is such a deep divide within the GOP on the issue of immigration.

Well, today, there were no signs of that deep division on the south lawn of the White House. In an elaborate signing ceremony, President Bush was surrounded by Republican lawmakers. This is also coming at a time when the president has of course been trying to boost his approval ratings, which are now hovering in the low 30s and at a time when Republicans are trying to keep control of Congress.

So now President Bush can put these tax cuts in his win column, and Republicans will be able to tout the cuts this election year.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our pro-growth policy stands in stark contrast to those in Washington who believe you grow your economy by raising taxes and centralizing power. They are wrong. Our pro-growth economic policies are working for all Americans.

(END VIDEO CLIP)

QUIJANO: Now, Democrats, meantime, quickly got in front of the cameras themselves. They argue that the bill benefits the wealthy and does not go far enough in helping middle class families.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: Today's really a good day to be a millionaire. But it's a bad day if you want to be a millionaire. That's because President Bush just signed with the stroke of a pen a bill that sealed the fate of those trying to get ahead.

(END VIDEO CLIP)

QUIJANO: Well, the Bush administration says that this bill will in fact help middle class families. Officials here pointing to a change in the alternative minimum tax, which will snag 15 million fewer middle class taxpayers. And, Wolf, of course, that $70 billion tax cut bill extends tax breaks on capital gains and dividends through 2010 -- Wolf.

BLITZER: Elaine, thank you.

Another money matter is giving Republicans headaches on Capitol Hill. House GOP leaders are promising a late-night vote on a long- stalled budget plan, but they admit they still don't have the votes to get it passed. Republican moderates are balking because education and health care spending was cut from the budget blueprint. Now to the immigration wars. There's a lot going on right now, including a rally by immigrants' rights advocates that is getting underway on the National Mall here in Washington.

Also, this hour the Senate Armed Services Committee is beginning a hearing on the president's plan to deploy National Guard troops along the U.S. Mexican border. Earlier today the defense secretary, Donald Rumsfeld, defended the proposal during another Senate hearing.

(BEGIN VIDEO CLIP)

DONALD RUMSFELD, DEFENSE SECRETARY: The up to 6,000 guardsmen and women proposed for this effort represent less than 2 percent of the total National Guard force of some 400,000 plus. And for the most part, they will be deployed during their two or three week active duty for training period. As such, this will not only not adversely affect America's ability to conduct the war on terror or respond to other domestic emergencies. It will actually provide useful, real life training for the members of the National Guard.

(END VIDEO CLIP)

BLITZER: Today the full Senate is pressing ahead with the debate on immigration reform. Conservatives are making their case for a border fence and arguing against citizenship for illegal immigrants.

The president's chief political adviser Karl Rove is trying today to bring together Republicans who are at serious odds over immigration.

Our chief national correspondent John King is here in THE SITUATION ROOM with more on this.

What is going on, John?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: It's interesting, Wolf. The debate right now is on the floor of the Senate, but everyone in town realizes the fate of immigration reform rests in the House.

So Karl Rove's mission today to try to bridge the divide between the president and many House conservatives, especially over the issue of the guest worker program. Many House conservatives call it amnesty. They say the president wants to let people who entered the country illegally stay and get on a path to citizenship eventually. They say they could never support that.

So Karl Rove was up there trying to sell the president's plan, also asking Republicans just turn down the volume. Let's see what the Senate does then we'll try to move on to a compromise with the House. But after that meeting, while Karl Rove said he was optimistic that they could keep moving this forward, the conservatives don't appear to have budged at all.

I stopped by the office of Steve Chabot. He is a Republican from the Cincinnati area. He has got a tough reelection race this fall. He says he listened to Karl Rove, but he hasn't changed his mind.

(BEGIN VIDEO CLIP)

REP. STEVE CHABOT (R), OHIO: I personally do not think that a majority of the Republican conference could support anything that even approaches amnesty. And that's what many of us consider this so- called guest worker program to be. We think the important thing is to secure our borders, to make sure that we have stopped this onslaught of millions and millions of people coming into this country illegally.

(END VIDEO CLIP)

KING: More evidence of the tough climb for the White House, this is a letter, Wolf, signed by 73 House conservatives. They say they can't support anything that they think is thinly disguised amnesty, and they say that's the president's plan.

Also stopped by the office of the house majority leader, Roy Blunt. It is his job to count the votes in the House. Now they're being very careful in the leadership. They say let the Senate pass the bill then we'll see if we can negotiate a compromise, but Mr. Blunt did have a message for the White House. He says the White House in negotiating this compromise has to realize that a president at 30 something percent of the polls does not have the power he might have had previously.

(BEGIN VIDEO CLIP)

REP. ROY BLUNT (R), MAJORITY WHIP: I think the president understands that this is a different situation than the president was in when his numbers were at 56 and 60 percent just not too long ago.

(END VIDEO CLIP)

KING: And, Wolf, it's not just the conservatives. I ran into Congressman Chris Shays of Connecticut, a moderate Republican, outside Mr. Blunt's office. He says he can't sell the president's guest worker program back in his district.

But he did suggest a potential compromise. He says that he could support and he believes a majority of House Republicans could support a plan that let those who came into the country illegally stay, let them stay, let them work here, let them get permits but deny them that path to citizenship. He says that could be a potential compromise. If they can't become citizens, he thinks it's more politically palatable.

BLITZER: Karl Rove, who has a lot of credibility with the conservative base of the Republican party, he's out there trying to get support for the president's plan on immigration.

Yesterday the vice president, Dick Cheney, who has a lot of credibility with the conservative base, he was on Rush Limbaugh's radio show yesterday making the case.

Tony snow, I heard him earlier today on Laura Ingraham's radio talk show -- radio program. Tony snow was until recently a conservative radio talk show host himself.

They're trying as best as they can to go out there and win support. But I don't sense they're meeting at least right now with a whole lot of success among that conservative base.

KING: They're not at the moment. They're going out there essentially knowing they're going to get roughed up a bit. The vice president asked very skeptical questions by Rush Limbaugh. That's where he is usually treated as a conquering hero. They understand that. They think that is necessary, go out and get roughed up, deal with the skepticism.

What they are trying to do is win the debate over defining this legislation. If the president's program is defined as amnesty among conservatives in the end, he won't get a bill.

But I just talked to a Republican pollster who says the American people are so mad about this, they want something done. And he believes, even though the president's standing is quite low, if the Senate passes something, you get some momentum, that many Republicans will believe they have to do something because the American people are so mad. He thinks in that environment maybe they'll be willing to compromise a little more.

BLITZER: John, thank you very much.

John King, Elaine Quijano, Andrea Koppel, they are all part of the best political team on television. CNN, America's campaign headquarters.

Jack Cafferty also part of that team. He is joining us now from New York with "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Thank you Wolf.

A couple of big name New Yorkers who could be considering a run for the White House might want to listen to what their home state voters. A new poll shows voters here in New York believe both Senator Hillary Clinton and former Mayor Rudolph Giuliani will run for president, and they don't think either of them can win.

Sixty percent of registered voters think Hillary Clinton will make a run in '08. Sixty-six percent don't think she'll be elected. Forty-five percent think Giuliani will get into the race. Fifty-two percent say he won't win either.

And the news is even worse for New York Governor George Pataki. Only 22 percent of the state's voters even want him to run for president. So here's the question, what does it mean when New Yorkers don't think Senator Hillary Clinton or former Mayor Rudy Giuliani can win a run for the White House?

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

BLITZER: Thank you Jack. And if you want a preview of Jack's questions, plus an early read on the day's political news, what's ahead here in THE SITUATION ROOM, you can sign up for our daily e-mail alert, easy to do so, just go to CNN.com/SITUATIONROOM.

Coming up, new developments in the political battle over Iran's nuclear ambitions. We'll tell you about a big no today from Iran's president.

Plus, the Navy sinks one of its aircraft carriers deliberately, sending it to the bottom of the sea all on purpose. We are going to tell you why. It's a very interesting story.

Plus, will the president's tax cuts help him out with his own Republican Party in November? Bill Schneider breaks down the numbers. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: There she is. Zain Verjee standing by with a quick look at some other important news making headlines.

Hi, Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Hi Wolf.

Iran says it won't be enticed, encouraged, influenced or induced into giving up its nuclear program. Iran's president, Mahmoud Ahmadinejad, rejects the idea of accepting incentives to stop enriching uranium. This comes after reports that Britain, France and Germany were ready to offer Iran a package including a light water nuclear reactor as an incentive to end its nuclear program. Now light water reactors can't be easily used to produce nuclear weapons.

Iraqi officials say they're finally inching a step closer to forming a permanent unity government. Iraq's parliament speaker says that he's received a letter from the prime minister designate, saying he'll present his cabinet nominations to lawmakers this Saturday. The parliament is expected to vote on them the same day. Now if it is approved, Iraq's government will finally be formed. Monday is the deadline for getting the job done.

Government or no government, one top U.S. lawmaker still wants U.S. troops out of Iraq. It was six months ago today that Congressman John Murtha called for the immediate withdrawal of U.S. troops from Iraq. Today the Pennsylvania Democrat held a news conference to talk about what he sees as a lack of progress in the country.

(BEGIN VIDEO CLIP)

REP. JOHN MURTHA (D), PENNSYLVANIA: The war in Iraq has been more harmful. I believe it's been more harmful to us than beneficial in fighting counterterrorism. We've diverted ourself away from terrorism to the war in Iraq.

(END VIDEO CLIP) VERJEE: And how do you get rid of an old ship that's almost as long as three football fields and is years past its glory days? Well, Wolf, you spend $20 million, strap on 500 pounds of explosives and just sink it. The retired U.S. aircraft carrier Oriskany is on its way to the bottom of the Gulf of Mexico. Conservation officials hope that this will become an artificial reef for sea life -- Wolf.

BLITZER: This was deliberate, and they think this is going to be good for the environmentalists out there. People are going to be going scuba diving or whatever. They think this is a good program.

VERJEE: That's what they say.

BLITZER: We shall see. But quite a way to do away with an aircraft carrier. I have never seen that before.

Thanks very much, Zain.

More than three quarters of a million times, that's how often the newly released video from the 9/11 terrorist attack on the Pentagon has now been viewed online at least in the last 24 hours.

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

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, the conservative watchdog group Judicial Watch has gotten the two surveillance videos of flight 77 hitting the Pentagon on September 11. They have put them on the popular site U2.com, also on Google Video.

This is what that video looks like. Now, they say they requested the videos to complete the public record and to put to rest any conspiracy theory about what hit the Pentagon.

Now, one site that has questions is 911truth.org. They say so long as the government suppresses evidence, it won't be known if it was something else that hit the Pentagon, whether it was a plane, a missile, a bomb or something else.

Now, this is a site whose mission statement says that they feel that some part of the government was involved in the execution of the 9/11 attacks. According to their latest statement, they say that the new video clears up nothing.

Now this counters physical evidence that was found at the scene of -- American Airlines flight 77 did hit the Pentagon, killing 184 people. There was remains of the passenger and crew that was found at the scene, including flight wreckage and the flight recorder -- Wolf.

BLITZER: Some people won't believe anything, though. Thanks very much for that, Jacki.

President Bush is calling this a good day for workers and families now that he's signed a tax cut extension into law. But is this a good day for Mr. Bush? Let's bring in our senior political analyst Bill Schneider. Bill? WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Wolf, another poll, more bad news for President Bush and his party. So why are they celebrating?

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): The Republican majority can't deliver a budget. They can't deliver immigration reform. They don't have an exit strategy in Iraq. The latest job ratings reflect that, 33 percent approval for President Bush, 33 percent approval for Congress. But the Republican president and Congress can cut taxes. And they did and they celebrated.

BUSH: This is a good day for American workers and families and businesses.

SCHNEIDER: Since Ronald Reagan, tax cuts have been an article of faith for Republicans. And paid off for them at the polls. Right now, according to the new poll, people trust Democrats more than Republicans on every issue, including taxes? That, too. Democrats today held their own counter celebration. They feel confident they can counter Republican claims. Democrats, it's a tax cut for the rich.

REID: Today is really a good day to be a millionaire. But it's a bad day if you want to be a millionaire.

SCHNEIDER: Republicans, it protects the middle class from paying higher taxes under the alternative minimum tax.

REP. DENNIS HASTERT (R-IL), HOUSE SPEAKER: We've prevented the Democrats, once again, from giving the American citizens a tax increase.

SCHNEIDER: Republicans, it will keep the good economy going.

REP. DEBORAH PRYCE (R), OHIO: Our economy has rebounded. Unemployment has dropped.

SCHNEIDER: Democrats, what good economy?

SEN. PATTY MURRAY (D), WASHINGTON: And today middle class families across my state and across this country are struggling to pay the rising cost of college, gas and health care.

SCHNEIDER: Democrats, it's irresponsible to cut taxes when the budget deficit is soaring.

MURRAY: We're paying for a war in Iraq off budget. We have mounting deficits.

SCHNEIDER: Republicans, don't worry too much about the deficit.

JOHN SNOW, TREASURY SECRETARY: Revenues of the United States government are surging. And with this surging revenues, we're going to be in a position to see the deficit come down. SCHNEIDER: Tax cuts are to Republicans like Social Security is to Democrats. The issue that brings the party together. But there's one big difference. Voters have always said they trust Democrats more on Social Security. They no longer say they trust Republicans more on taxes. Wolf.

BLITZER: Bill Schneider reporting, thank you, Bill.

And tonight President Bush and his fellow Republicans will set aside all their differences at least for a little while to raise money for their fight to keep control of the Congress. Mr. Bush will headline a Republican Party gala here in Washington. The event, get this, expected to raise $17 million. One event alone.

The Dow Jones takes a dive. So what's behind the big drop in the stock market today? Let's check in with our Ali Velshi, he's in New York. What is going on, Ali?

(STOCK MARKET REPORT)

BLITZER: Up next, is the battle over immigration splitting the Republican Party into two? I'll ask Donna Brazile and Bill Bennett, they're standing by. Plus, as General Hayden gets ready for his confirmation hearings as CIA chief, the White House changes course over a secret program to collect your calls. We'll gauge the political fallout. That's coming up in our "Strategy Session" as well. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer here in Washington. Today in our "Strategy Session," conservative Republicans are strongly expressing their discontent with the White House. Is the president close to losing his political base? And what can he do to try to bring them back into the fold?

Joining us now are CNN political analysts, Democratic strategist Donna Brazile and Bill Bennett, the host of the radio program "Morning in America." Guys, thanks very much for joining us.

Let's talk about immigration reform. The president gave a big speech earlier in the week. Here's Congressman Dana Rohrabacher, a very conservative Republican from California. He says this -- "It", the president's proposal, "is a non starter with the American people and the Republican Party will pay the price at the polls." Is he right?

BILL BENNETT, RADIO TALK SHOW: Well, the president did get good reviews in the polls, didn't he? We got a good poll, finally and you promised you'd report one when we got one.

BLITZER: It was -- I'll show it to you right now if you want. It was a good poll for the president. It was an instant CNN poll taken that night right after the president's nationally televised address. The opinion of Bush immigration policies. Before the speech, only 42 percent had a positive assessment, 67 percent after the speech. I suspect that's a good poll for the president.

BENNETT: It is a good poll, you're an honorable man to report it. Unfortunately, instant poll like instant breakfast didn't last. I've been listening to my folks on the radio, I've been talking to other people, David Brooks column in "The New York Times." This thing is not flying with Republicans. I am less worried about opposition from the Democrats on this than uniting our party.

BLITZER: The Democrats are on board.

BENNETT: Well I know Democrats are on board with Bush. But Bush is not on board with his base, with conservatives. People are very upset about it and they say the president and others don't seem to understand that the word illegal means illegal and they want the borders secure before they talk about anything else.

The Isakson amendment, not to get too inside baseball, but Senator Isakson's amendment was one that people were rooting for. That failed. That's the one that would have separated out the two questions. Secure the border, first. Once that's secured, then we can talk about it.

BLITZER: That was in the Senate.

BENNETT: Yes.

BLITZER: Here's what Rahm Emanuel, who's in the House. He's leading the fight to get a majority in the House of Representatives. He said this, "We're going to keep them," referring to Republicans, "back on their heels and make them compete for their own base."

But what about the Democratic base? You know a lot about maintaining the Democratic base. Give some advice to the Republicans on how they can maintain their base...

(LAUGHTER)

BLITZER: ... as a strategy.

(CROSSTALK)

BENNETT: I'm all ears.

DONNA BRAZILE, CNN POLITICAL ANALYST: Well, look, there's no question that what the Republicans will do is pull out -- pull out the old playbook.

They will try to rally them on immigration, try to rally them later this summer with a vote on the constitutional amendment on gay marriage. They will try to rally them on a host of other issues. The tax cuts, I believe, is the beginning. They will probably roll out some judges. And then they will try to rally the Republican base by the end of the summer and then begin to siphon off some Democratic votes, and then look for some independents to grab on to.

BLITZER: Well, it sounds like a pretty good strategy that Karl Rove might have.

BRAZILE: Well, I have -- I have seen enough elections where Karl can divide and conquer and use wedge issues to create the advantage.

But I think Democrats are in good shape this season, not only with their base. But, also, I think they have the ability to pull some -- perhaps some loose change from the Republicans this time.

BLITZER: I think what a lot of Republicans fear -- I'm sure Karl Rove fears it -- Dick Cheney fears it -- is that Republicans are simply going to stay on the sidelines and not show up, if they become so aggravated, so incensed at this plan.

BENNETT: Well, not if we follow Donna's advice. I might actually take a lot of that advice.

Look, judges who follow the rule of law, the economy, which is in very good shape, family issues, and Donna left out, I would add, national security, because I think this continues to be a very strong issue for the president. And...

BLITZER: On all of those issues, now, the polls show, as you know, the country prefers Democrats over Republicans.

BENNETT: That's -- that's the generic preference.

But I think, when you get out and sharpen differences and you ask people to declare where they are on taxes, where they are on gay marriage, what they want to see in judges -- and the national security business, I think, is the 800-pound gorilla. And every time that issue comes up, I think it helps the president.

BLITZER: Well, let's talk about the national security issue.

(CROSSTALK)

BLITZER: Is that the 800-pound gorilla? Do the -- does the White House, does the commander in chief have this ability to rally the country around his Republican Party in November because of the war on terror, the fear?

BRAZILE: No. No.

He's lost credibility on Iraq. Iraq is the centerpiece of his foreign policy strategy. And until the president can wrap his arms around something new, something different, a change of course, bring the troops home, something different, the American people are watching the news, and they're saying, we're dissatisfied with what's going on in Iraq, and we're ready to look at the Democrats this time.

Look, the Republicans right now have some other strategic advantages that will prevent them from getting 50 percent, even with their playbook that they have used in previous elections. That may get them to 42 percent. But to get back to 50 percent, they really need to do something dramatic and do something different. And I don't see that happening any time soon. BENNETT: It's not playbook. It's real world.

Five days ago, we had this NSA story break in "USA Today."

BLITZER: In "USA Today."

BENNETT: The mainstream media went crazy on it. CNN, even dear old SITUATION ROOM, went crazy. Jack Cafferty had a conniption and said we are one step away from a dictatorship.

This was -- you called it wisdom. The democrats were talking about impeachment, constitutional confrontation. Polls came in. Sixty-five percent of the American people in favor.

This isn't playbook stuff. This is real. This is war. And the American people think this commander in chief, when it -- when -- when the rubber hits the road, they're going to prefer him over a Pelosi or a Reid.

(CROSSTALK)

BLITZER: Since that instant poll, there have been other polls that showed a very different percentage. But, as you well know, the administration today is finally briefing the full Senate Intelligence Committee, the full House Intelligence Committee, not on the phone records, but on the initial warrantless surveillance program.

Jay Rockefeller, the ranking Democrat on the Senate Intelligence Committee, says, "The White House, for the first time, is showing signs that they are serious about oversight of this program."

Is it all tied in? Is it coincidental, though that...

(CROSSTALK)

BLITZER: ... tomorrow, General Hayden starts his confirmation hearings?

BRAZILE: There's no question.

I mean, General Hayden ran the National Security Agency for six years. He implemented this program. Many Democrats and Republicans believe that this program is illegal, that it tramples upon civil -- civil liberties. And I do believe that General Hayden will get a grilling, that -- that -- that the Republicans and Democrats will try to get answers, so that they can provide some oversight to see the extent of this program.

BLITZER: As a libertarian, are you concerned about any of these aspects?

BENNETT: The data mining of these numbers, not listening in on phone calls. It's not a wiretapping program. I haven't seen one plausible case made by a lawyer that this is a violation of the Fourth Amendment.

And, again, we're talking politics here. I think, in terms of the politics, the president -- the president has a winner.

In terms of the full committee, I kind of regret that. I mean, can't we trust the chairs and the ranking members? When you multiply the number of people who get their hands on stuff, I'm just worried about leaks. And that can be a real problem.

BLITZER: Well, and a lot of these guys point out that, under the law, you're supposed to brief the full committee when it comes to these kinds of matters.

BENNETT: Well...

BRAZILE: You can't cherry-pick members of Congress when it comes to giving out this information. You got to brief the whole committee.

BENNETT: Well, they cherry -- they -- they cherry-pick their own when they pick leaders. And that's what I thought leaders are for.

It's just, one has to -- if they want to do it this way, fine. And I think they feel pressure to do it, because of the Hayden hearing, in part, but also because there has been a lot of caterwauling about it.

But, when you multiply times three or four the number of people getting this information, the chances of leaks -- and, again, I remind people, we're at war; this is national security -- increase dramatically.

BLITZER: We have got to leave it there.

But you're suggesting that Jack Cafferty doesn't have words of wisdom? Is that what you're saying?

BENNETT: I didn't...

BRAZILE: He -- he's a pearl, a gem of wisdom....

(LAUGHTER)

BENNETT: I didn't...

BRAZILE: ... each and every day.

BENNETT: I would have preferred if you said wise guy, rather than words of wisdom.

BLITZER: He's a very wise guy.

BENNETT: Well...

(LAUGHTER)

BENNETT: OK. He was wrong on that one.

BLITZER: Donna Brazile and Bill Bennett are part of the best political team on television -- CNN, America's campaign headquarters. Up next, it's crunch time in New Orleans, and the race between the mayor, Ray Nagin, and his remaining challenger, Mitch Landrieu, is getting heated -- details in today's "Political Radar."

And she's facing a tough time in her quest for the U.S. Senate, but Katherine Harris gets some quality time today with the president. There she is, positioned right behind him.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: On this Wednesday, we got a "Political Radar," as usual, the countdown to Saturday's mayoral runoff in New Orleans. The lieutenant governor, Mitch Landrieu, today picked up the endorsement of the city's leading newspaper, "The Times-Picayune" -- this a day after he and the incumbent, Ray Nagin, engaged in a heated debate.

Nagin accused Landrieu of being backed by big money and old-line politics. Landrieu, a member of one of Louisiana's most prominent political families, fired right back. He says Nagin's criticism is unfair.

Mixed results today for two of the Iraq war veterans running for Congress. In Pennsylvania, Patrick Murphy won yesterday's Democratic primary. He will Republican incumbent Mike Fitzpatrick this fall.

In Kentucky, Iraq war veteran Andrew Horne lost his bid to take on Republican Congresswoman Anne Northup in November. Horne was beaten by political columnist John Yarmuth in the Democratic primary.

With the midterm election in mind, we couldn't help but look over President Bush's shoulder during today's signing of the tax cut extension. There, very prominently -- check it out -- stood Republican Congresswoman and embattled Senate candidate Katherine Harris of Florida. Just days earlier, the president's brother, Governor Jeb Bush, made headlines by saying Harris could not win her bid to unseat the Senate Democratic incumbent, Bill Nelson.

Another presidential photo opportunity today brought out the would-be hipster in Mr. Bush. At the White House, he welcomed 190 Olympians from the Winter Games in Torino, Italy, and he gave a special shout-out to the snowboard team and the redhead who run the gold, Shaun White.

Let's listen.

(BEGIN VIDEO CLIP)

BUSH: We're honored that the flying tomato...

(LAUGHTER)

BUSH: ... represented our country. And we want to thank all the dudes and dudesses of the snowboarders who are here.

(LAUGHTER)

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

BLITZER: I'm told the correct term is dudette -- dudette. Experts tell me that.

(LAUGHTER)

BLITZER: Can senators and congressmen be ranked, just like college sports teams? One Web site thinks so. The rankings even includes several 2008 presidential hopefuls.

Our Internet reporter, Abbi Tatton, standing by with details -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, the Web site is ranking lawmakers by factors like position, influence, legislative activity, as well as less tangible factors, like sizzle and fizzle.

These are all online at Congress.org. It's brought to you by a software and research firm called Knowlegis. You can check out how your state is doing in the power rankings, your local lawmaker, also some potential presidential candidates. Let's look at the Senate.

Number one in the Senate is Senator Bill Frist, probably not surprising, given his leadership position. Soon after him, number three is Senator John McCain. McCain did well here in the influence section. He also had significant sizzle factor, given his unique background and personality. Also sizzling, at number 41, Senator Hillary Clinton. Clinton was further down, given the fact that she is a freshman senator.

All these results look at the record for 2005. Updated results are going to be on the site just in time for the November elections -- Wolf.

BLITZER: Sounds like fun. Thank you, Abbi.

Coming up, the spotlight on Karl Rove, for better and for worse. How does he compare to top presidential advisers of the past? Jeff Greenfield has been looking into this.

And one of Vice President Dick Cheney's top advisers is his own daughter, Mary Cheney. She opens up candidly about her father, politics, the war in Iraq, and her gay lifestyle -- my interview with Mary Cheney, that's coming up as well.

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

(COMMERCIAL BREAK)

BLITZER: The president's top political adviser, Karl Rove, is carrying on with business, including his meeting today with House Republicans on immigration. But with the CIA leak grand jury meeting once again today, there's a legal cloud still hanging over Karl Rove's head.

Let's bring in our senior analyst, Jeff Greenfield -- Jeff.

JEFF GREENFIELD, CNN SENIOR ANALYST: Wolf, as you mentioned, the jury is still out, literally, on Karl Rove's legal troubles.

But that visit today to House Republicans demonstrates that, when it comes to politics and policy at this White House, Rove remains first among equals. This is a position we have rarely, if ever seen at the White House.

(BEGIN VIDEOTAPE)

GREENFIELD (voice-over): Woodrow Wilson relied heavily on Colonel E.M. House for guidance. After Wilson's stroke, House and first lady Edith Wilson effectively ran the administration.

FDR had a host of important advisers. James Farley helped make him president, then ran patronage as postmaster general, before a bitter break.

Harold Ickes was a key aide throughout the New Deal. His son is close to Senator Hillary Clinton today.

And Eleanor Roosevelt was revered and reviled as Roosevelt's liberal conscience. President Eisenhower made New Hampshire Governor Sherman Adams the most powerful famous White House aide ever, until a brush with financial improprieties brought him down.

And, under JFK, no associate wielded more power than did Attorney General and younger brother Robert Kennedy.

(BEGIN VIDEO CLIP)

RICHARD NIXON, PRESIDENT OF THE UNITED STATES: I accepted the resignations of two of my closest associates.

(END VIDEO CLIP)

GREENFIELD: Nixon aides H.R. Haldeman and John Erlichman were known and feared as the holders of power. Both wound up in prison for their Watergate misdeeds.

Under Ronald Reagan, power was held by a so-called troika. Ed Meese was the one conservatives trusted, while they regarded Mike Deaver and especially James Baker as the pragmatist who would not let Reagan be Reagan.

President Clinton drew on a White House variety of aides. Bruce Lindsey was less a policy or political adviser, more a personal confidante, who some called the man who kept the secrets. Clinton turned to longtime GOP consultant Dick Morris for help in charting his 1996 reelection.

And Robert Rubin, chief economic adviser and later treasury secretary, was Clinton's economic point man. Hillary Rodham Clinton, of course, was not just first lady, but the architect of Clinton's doomed health care reforms.

BUSH: The architect, Karl Rove.

(CHEERING AND APPLAUSE)

(END VIDEOTAPE)

GREENFIELD: The architect, in fact, is what Bush labeled Karl Rove after that reelection in 2004.

So, do Republicans still trust Rove's political instincts, given the president's fall in the polls? And, if they do, what happens if there is bad news on the legal front for Rove in the coming days? One thing we do know, FDR's famous admonition that White House aides should have a passion for anonymity seems, literally, like something from another century -- Wolf.

BLITZER: Jeff, what would happen if Karl Rove, you know, were to be indicted? He would have to resign, just like Scooter Libby had to resign from the White House staff, working for Dick Cheney.

What would happen?

GREENFIELD: Well, here's a wild speculation, Wolf. It would not be good news for the Republicans.

I mean, they have seen Rove, in effect, get Bush into the White House in 2000. That was pretty dicey, extend the Republican majorities in the Congress in 2002, and win reelection.

So, even if they buy into Rove's notion that they can hold the Congress this fall, that immigration will work out, to remove the most powerful political voice in the Republican Party from the scene, which would have to happen with an indictment, that does leave very much of a vacuum, you know, and there's no way Rove can play that role if he's indicted.

BLITZER: Jeff Greenfield, thank you very much -- always thoughtful analysis from Jeff.

Up next, money can't buy him love -- details on an announcement by Paul McCartney and his wife, Heather Mills.

And, later, a unique perspective on Iraq -- Brigadier General Mark Kimmitt answers some tough questions about the conflict and whether it's a civil war. He's here, in THE SITUATION ROOM, with me.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Here's a 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. Suffield, Connecticut: A U.S. Marine Corps honor guard carries the casket of Corporal Stephen Bixler. He was killed in action in Iraq.

In China, Typhoon Chanchu veers east, sparking -- sparing Hong Kong, but heads towards the mainland's southern coast. Just days earlier, the storm kills 40 people in the Philippines and wipes out thousands of homes.

In Indonesia, lava flows from Mount Merapi -- evacuees in the area began returning to their homes today, but scientists warn that thousands are still at risk from the possibility of a major eruption.

And, in New Orleans, helicopters and firefighters battle a blaze in a warehouse that's being demolished. No one is injured.

Let's get some more on that fire in New Orleans -- Zain Verjee joining us once again from the CNN Center -- Zain.

VERJEE: Wolf, Hurricane Katrina didn't destroy it, but the four- alarm fire is now, as you just mentioned, right now flickering flames of crimson and orange, belching out plumes of black smoke, as a warehouse on the New Orleans riverfront burns.

Helicopters are dousing the flames with water, and officials are investigating the cause of the blaze. There are no reported injuries.

The rain is over, but the worry and the woe have just begun. Across Massachusetts, Maine and New Hampshire, many are out assessing the damage after heavy rains over the past week. The downpours turned many roads into rivers, caused the evacuations of thousands, pushed dams to near breaking, and is being blamed for one death. Dry weather is forecast for tomorrow, but rain could return on Friday.

And his loving flame is out. Former Beatle Paul McCartney and his wife, Heather, say that they're separating after four years of marriage. McCartney blames the media for constant intrusion in the marriage and for spreading vicious rumors. McCartney is considered one of the world's richest rock stars.

Wolf, he's worth more than $1 billion. Heather McCartney has said that no prenuptial agreement was signed. They have a 2-year-old daughter, Beatrice Milly -- Wolf.

BLITZER: I don't know about you, Zain, but I was pretty shocked when I heard that news earlier today. I had met them a couple of years ago.

VERJEE: Oh, yes?

BLITZER: I -- I thought that was the -- it was the -- it was the real thing.

(CROSSTALK)

VERJEE: What were they like? BLITZER: They were lovey-dovey. You know, what can I say? But who knows?

VERJEE: All right.

BLITZER: Zain, thank you very much.

Still to come, if New Yorkers don't want her to run for president, can Senator Hillary Clinton convince people in other states that they should run and could run -- and could win, actually? Jack Cafferty is checking your e-mail.

And is Al Gore rethinking a race for the White house? We are going to catch up with the former vice president and ask about his political plans in our 7:00 p.m. Eastern hour, right here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Jack is in New York with "The Cafferty File."

Hi, Jack.

CAFFERTY: Wolf.

A new poll shows voters in New York believe both Senator Hillary Clinton and former Mayor Giuliani will run for president. They don't think either one of them can win the office. That's the question. What does it mean when New Yorkers don't think Clinton or Giuliani can win a run for the White House?

Harold in Anchorage, Alaska, writes: "It means New Yorkers, like everyone else, except Halliburton executives, disapprove of the war in Iraq and won't vote for supporters of that fiasco. At least, in this case, I love New York."

Joe writes: "Jack, neither Clinton, nor Rudy can win, because all East Coasters are arrogant elitists who do not connect with the average American, although, if both of them ran, I would vote for Rudy. He can lead."

Fran in Herkimer, New York: "I think these responses to the polls mean that it's time for a brand-new third party. Many of us are disgusted with the Democrats and the Republicans."

Marlene in Tampa, Florida: "It means a die-hard Democrat like me would never vote for Hillary. She has moved too far right and is starting to sound like a Republican. As for Giuliani, he is a Republican first, and, second, he is a man who publicly cheated on his wife."

Bill in Round Rock, Texas, writes: "If New Yorkers elected Hillary Clinton in the first place, how smart can they be?"

And Jack in Thibodaux, Louisiana: "It means that New Yorkers, like the rest of us, believe the inmates are in charge of the asylum" -- Wolf.

BLITZER: Jack, thank you very much.

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