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The Situation Room

Hezbollah Launches More Powerful Rocket; U.N. Relief Coordinator Seeks 72-Hour Cease-Fire; Israel May Face Threats From Mediterranean Sea; Shooting at Jewish Community Center in Seattle

Aired July 28, 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: Thanks very much, Lou. 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, punishing loads (ph) of powerful weapons here in the Middle East. It's 2:00 a.m. Saturday in northern Israel, the target of the most dangerous rockets launched by Hezbollah fighters so far. We'll have live reports on the warfare.

And a desperate humanitarian appeal for at least a temporary cease-fire. Also this hour, threats to Israel from the water, Navy officers fear attacks from surprising sources, even a seemingly innocent jet skier. We'll bring you an exclusive report and some extraordinary video.

And Condoleezza Rice may not have been ready for her close-up, photos of the secretary of state seem to tell a frustrating story, but was there more to it than meets the eye?

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

Tonight officials here in Israel say they're reviewing an appeal for a 72-hour cease-fire to allow humanitarian workers to get in to critical combat zones. The U.N. Emergency Relief Coordinator Jan Egeland called for the truce today saying there's something wrong with a war where there are more dead children than armed men. No official response from Hezbollah yet.

Also tonight Hezbollah is boasting it has a dangerous new weapon. Israeli police say three rockets that hit an area south of Haifa today carry 220 tons of explosives each. That makes them the most powerful missiles launched by Hezbollah guerrillas in southern Lebanon in this conflict.

And in Washington President Bush and Prime Minister Tony Blair of Britain say they want to see a U.N. resolution aimed at ending the conflict introduced next week. Secretary of State Condoleezza Rice is due back here in the Middle East in the coming hours. We'll have full coverage.

We want to talk about all of those powerful developments including those Hezbollah rockets, the war that's now ratcheting up and the stepped up efforts to stop the war. CNN is uniquely positioned throughout the Middle East in Washington. Our Ed Henry is at the White House. Brent Sadler is in Beirut. Let's begin our coverage, though, this hour with CNN's Matthew Chance in northern Israel -- Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Wolf thanks very much. Well Israeli authorities say that the missiles that struck Afula, a town in northern Israel earlier today, were the first kind ever fired at Israel from Hezbollah's positions in southern Lebanon. They are much, much bigger than the regular Katyusha rockets that we've witnesses raining down on towns and cities across this country for the past several weeks, had much more powerful explosives inside them and it seems the range was much longer as well, possibly as long as a hundred kilometers or 60 miles.

And so they're able to strike deep into Israel's cities much further than have been hit before by these Katyusha rockets. Now, the exact kind of rockets isn't clear at the moment that these were fired, and not to believe -- believed to be the most powerful rockets Hezbollah has at its disposal. They're currently being analyzed in Israeli laboratories to try and find out first of all what they are, but secondly, to find out who may have supplied them and therefore to find out how much threat the Israeli population is as a result of them.

But there is a great deal of concern here in Israel amongst ordinary people about the threat that Hezbollah poses with its wide arsenal of missiles and Hassan Nasrallah, the head of the Lebanese Hezbollah militia has vowed to strike at Israel's main cities including Tel Aviv, its biggest city. It hasn't done that yet but even so this much bigger missile is being seen by many here as a major escalation.

In the meantime Israeli forces are battling with Hezbollah militia in the border region just behind me. Around the Hezbollah stronghold village of Bint Jbeil where there's been very close combat situations over the past several days, heavy casualties on both sides, Israeli forces saying they killed at least 24 Hezbollah militia fighters over the course of this day.

Artillery and air strikes still continuing from Israel into southern Lebanon as well, but, as we've seen throughout the course of these last few weeks, and, again, every day, Hezbollah's ability to fire its rockets into Israel seems undiminished, Wolf.

BLITZER: Matthew, thank you very much. Matthew Chance reporting from northern Israel. And as we mentioned a United Nations official wants the war to stop if only long enough to allow the delivery of some badly need aid. The United Nations emergency relief coordinator is pushing for a 72-hour cease-fire.

Let's go to our Beirut bureau chief, Brent Sadler for more -- Brent.

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: Well, Wolf, the idea of this 72-hour cease-fire has yet to receive any official response from Hezbollah. However, the Amal Party, which is allied with Hezbollah and whose leader is the speaker of the parliament met U.S. Secretary of State Condoleezza Rice a few days ago has said that in principle Amal likes the idea of a cease-fire on the humanitarian level.

Hezbollah has said all along that it would be open to the idea of a non-conditional cease-fire that could come into effect first and talk about other issues later. So we'll have to see just how much traction this call at the U.N. level receives both on the Israeli and Lebanese side of the border -- Wolf.

BLITZER: Brent, is there any additional major attacks by the Israelis against Hezbollah targets that were reported today in Lebanon?

SADLER: No, there's been a continual grinding down of Hezbollah's movements in the south, the fighting has really been an attempt by Israeli forces to secure a narrow belt, a security strip Israel calls it, just a couple miles or so inside Lebanon. There are 21 villages, Wolf, that the Israelis told the UNIFIL forces here, that's the United Nations interim force in Lebanon that the IDF intended to be able to control. According to U.N. sources they've got about a third of those villages actually under control, but there are many more eastwards toward the Syrian side of the border with Lebanon.

So you still have large numbers, it's thought, according to U.N. sources of civilians trapped in these areas, but Wolf, Hezbollah tell me that many of the people they've got down there are diehard Hezbollah supporters, a kind of militia who have been picking up arms they claim to attack Israelis so you can imagine the kind of difficulties the IDF will have if it continues to grind away at these Hezbollah positions, the Israeli civilian population continues to take Katyusha rocket hits deeper into Israel, and really attempts to put an international force on the ground just really at the early stages -- Wolf.

BLITZER: Brent Sadler in Beirut, thank you for that. Israel says they want the world to be clear about who its real enemy is, namely, Hezbollah and not Lebanon. Earlier I spoke with the Israeli foreign ministry deputy director for public diplomacy, Gideon Meir, and I asked him to respond to the U.N. emergency relief coordinator's call for a temporary 72-hour cease-fire.

(BEGIN VIDEO CLIP)

GIDEON MEIR, ISRAELI FOREIGN MINISTER SPOKESMAN: We're not fighting the Lebanese people. We're not punishing the Lebanese people. We have a war with the Hezbollah terror organization. The Hezbollah, I can tell you (INAUDIBLE) Hezbollah today is preventing convoys from going -- reaching their villages. They're blocking food to go into the villages. They're even blocking their own people from leaving their villages because they want to use a civilian population as part of the propaganda machinery of their campaign of terror against the people of Israel.

BLITZER: If he does come with a formal request to the Israeli government, you say that hasn't been made yet, but let's assume he does, would Israel respond affirmatively or negatively to a 72-hour cease-fire?

MEIR: We would have to evaluate it. Let's also make one point clear. We're not talking here about a truce between two states between a government and a government. We're talking here about terror organizations. Terror organizations don't make any kind of agreements. They attack.

They do what they have to do. They're using their own civilian population and they're not interested in a truce whatever. If there would be a truce from their point of view, it's only to rearm and to take better positions in order to continue launching rockets and shelling rockets on to Israeli cities as you've witnessed today and in the past two weeks.

(END VIDEO CLIP)

BLITZER: United States and Britain meanwhile are presenting a united front today on the Middle East crisis. President Bush met with British Prime Minister Tony Blair at the White House. They promised to push for a U.N. resolution on the crisis next week.

Here's our White House correspondent Ed Henry -- Ed.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Wolf, under heavy pressure to embrace a cease-fire the two leaders say that they want to piece together a plan that will provide lasting piece in the Mideast, not a short-term fix.

(BEGIN VIDEOTAPE)

HENRY (voice-over): President Bush leaning again on his closest ally, British Prime Minister Tony Blair, this time to deal with the Mideast crisis. The president is dispatching Secretary of State Condoleezza Rice back to the Mideast to craft a United Nations resolution.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our goal is a chapter seven resolution sending out a clear framework for cessation of hostilities on an urgent basis and mandating the multinational force.

(SOUNDS)

HENRY: Sounds awfully similar to the cease-fire the U.S. has blocked for two weeks, but the president cast this as a larger struggle, to disarm Hezbollah and other terrorists.

BUSH: They're violent, cold-blooded killers who are trying to stop the advance of freedom. And this is a calling of the 21st century.

HENRY: That's the Bush doctrine, the freedom agenda laid out in his second inaugural.

BUSH: There is only one force of history that can break the reign of hatred and resentment and that is the force of human freedom. HENRY: But this is a president and a doctrine under fire.

WENDY SHERMAN, FORMER STATE DEPARTMENT OFFICIAL: We see Lebanon in the Middle East and the Palestine falling into shambles, some of it for good reason because of the Israel's need to defend themselves, but on the other hand freedom has taken a back seat to survival.

HENRY: The same can be said of Iraq.

(SOUNDS)

HENRY: A hundred civilians dying every day overshadowing the first White House visit of new Iraqi Prime Minister Nouri al-Maliki and posing a new challenge to a declaration issued just days after 9/11.

BUSH: Either you're with us or you are with the terrorists.

HENRY: That black and white doctrine now seems clouded with shades of gray as Maliki dubbed a key ally in the war on terror has refused to denounce Hezbollah.

(END VIDEOTAPE)

HENRY: White House officials say that's because al-Maliki is facing some domestic political pressures and on the president's overall approach to the war on terror today he got some cover from his key ally, Mr. Blair, who said that while this will be a long struggle, there is no alternative but to stay the course -- Wolf.

BLITZER: Ed, thank you very much. Ed Henry at the White House. Let's go to New York. Jack Cafferty is standing by with the "Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Thank you, Wolf. So what would help the Republicans with the upcoming midterm elections? Bring the troops home from Iraq, right? In fact you'll recall just last month there were reports that the top commander in Iraq had drafted a plan for sharp troop reductions with the first cut scheduled to come as early as September. Well, guess what? Just like so many other things that we've been told about Iraq, this apparently is not going to happen either.

On the contrary, yesterday the Pentagon announced the Army will keep about 3,500 soldiers from the 172nd Striker Brigade in Iraq for an additional four months. All those soldiers were due to come home next month. The situation in Baghdad though has deteriorated to the point where we can't afford to pull them out of there and instead the U.S. is sending a thousand more troops -- thousands more troops into the capital city.

So the question we're asking is how much longer do you think U.S. troops will be in Iraq? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Thank you, Jack. The Syria factor, they could hold the key to a diplomatic breakthrough, so will Condoleezza Rice change gears and talk to Damascus directly? That's coming up.

Plus, a CNN exclusive, terror by the sea, a water ride packed with explosives, we have the video that's been declassified by the Israeli Navy.

Plus, life in a fish ball, a simple gesture makes headlines around the world. Our Jeanne Moos goes behind the pictures to see what really happened.

Live from Jerusalem, you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We'll live in Jerusalem following all the latest developments in the Middle East crisis. The Bush administration says Syria has armed and aided Hezbollah. But could the U.S. refusal to talk to Damascus hurt efforts to end the fighting?

CNN's Brian Todd is in Washington and he has the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, There is growing sentiment that any deal for a cease-fire probably has to involve Syria somehow but there's also increasing concern that an opportunity is slipping away.

(BEGIN VIDEOTAPE)

(SOUNDS)

TODD (voice-over): Amid frantic diplomatic efforts to silence these guns...

(SOUNDS)

TODD: ... President Bush is asked point blank about a potentially key player.

UNIDENTIFIED MALE: ... when Secretary Rice goes back to the region will she have any new instructions such as meeting with Syrians?

BUSH: Her instructions are to work with Israel and Lebanon to get a -- to come up with an acceptable U.N. Security Council resolution that we can table next week.

TODD: A non-answer consistent with the Bush administration's recent hard line toward Syria that's led to the withdrawal of the U.S. ambassador in Damascus and an almost grinding halt to any diplomatic contact. U.S. officials are clear. They don't want to reward Syria for its ties to Hezbollah and Iran. It's lack of cooperation with the U.N. probe into the murder of Lebanon's former prime minister, Rafik Hariri and its alleged harboring of insurgents from Iraq. But some former diplomats say in an situation like this an overture could work.

RICHARD MURPHY, FORMER U.S. AMBASSADOR TO SYRIA: You talk to your critics. You talk to your enemies. It's more use than talking just to one's friends.

TODD: And Syria, according to analysts, is in a unique position to intercede given its role as a facilitator, a logistics hub between Hezbollah and its patrons in Tehran.

EDWARD LUTTWAK, CTR. FOR STRATEGIC AND INT'L STUDIES: If they cut off the supply, then Hezbollah has to accept its disarmament, as the United Nations ordered last year, so the Syrians can do it.

TODD: And they might have motivation. Analysts say Syria's relationship with Iran and Hezbollah is outdated and has always been more a marriage of convenience than ideology.

COL. PATRICK LANG (RET.), MILITARY INTELLIGENCE ANALYST: The Syrians are not really fanatics, they're tribal politicians that want to hang on to their loot, and I believe they would probably make a deal.

(END VIDEOTAPE)

TODD: So what would both sides get of that deal? The U.S., Israel, and their allies would get a better crack at stability in southern Lebanon and more cooperation from Syria and the war on terror. Syria gets out of isolation and more economic opportunity. But right now most observers believe with each side so entrenched an opening with Syria is unlikely -- Wolf.

BLITZER: Brian thank you. President Bush made it official today. He says he's sending Secretary of State Condoleezza Rice back here to the Middle East in the hours ahead. Our chief national correspondent John King is following all the latest diplomatic developments. He's here in Jerusalem.

John, you know, we've covered Washington for a long time. Very often, over many administrations, there are serious differences between the State Department and career professionals and the political guys who come in every four years or so. Is there a split as far as dealing with Syria or other issues that you sense happening within the Bush administration?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: The career people say the Bush administration should sit down definitely with Syrian and probably with Iran despite the differences. The politicians, especially the Texan president, in the White House says no. That they have not come to the table in a responsible way.

And his policy is if you want to be -- you want to get me at the table, you want to get my administration at the table, you need to act responsibly. Good behavior begets good relations. But the -- especially with Syria right now because the supply routes for Hezbollah run through Syria so even if there's a cease-fire a week or a month down the line, the test is are they getting new rockets?

Are they getting new supplies from Syria? The career people would say, and a lot of the people who are now out of government would say sit down with them, once, twice, if it doesn't go well, then break off relations again, but give it a chance. This administration says no.

BLITZER: She's devoting, Condoleezza Rice, an enormous amount of time to this Middle East crisis right now. She'll be here in Jerusalem tomorrow night meeting with the Israeli prime minister, but there are so many other issues on her plate right now with North Korea, Iran, the war in Iraq, certainly no shortage of crises. How is she dealing with all of these different issues?

KING: Well she's clearly very busy. One reason she went to Asia on a shortened trip, but she went some, was to try to keep momentum going on the very stalled North Korea issue right now. She has a huge challenge here. U.S. credibility in the world, especially in this region is in doubt, is under fire. So here is -- Prime Minister Blair said today you have a crisis, turn it into an opportunity. The Bush administration has a credibility problem.

There's a potential opportunity here. But it is a huge challenge. She has to convince the prime minister of Israel that this is a cease-fire deal that will protect his country. Public opinion -- 82 percent of Israelis say keep up the fight. Seventy-one percent of Israelis say use more ground forces, fight more, use more force against Hezbollah, so the prime minister is in a very strong position right now. She has to convince him this deal will keep Israel safe and then she has to somehow convince the prime minister of Lebanon to come to the table with Hezbollah and tell it to stop.

BLITZER: Not an easy assignment for her.

KING: Not at all.

BLITZER: John, thank you very much. John and I are going to be here all weekend in Jerusalem following all the diplomacy, following Condoleezza Rice. Stay with CNN throughout the weekend for all the latest developments on the crisis in the Middle East.

Still to come tonight here in THE SITUATION ROOM, Hezbollah fires its most powerful rockets yet into northern Israel. They're much more explosive than other rockets it's used. What this could mean for civilians caught in the Middle East as the fighting drags on.

And it's not just rockets that threaten Israel; it also faces some danger -- serious dangers from the sea. And would you believe from jet skiers, their cargo? Deadly explosives. Our exclusive report and the video, all that coming up right here in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: I'm Wolf Blitzer in Jerusalem, we're following all the latest developments on the crisis in the Middle East and there have been some significant developments today, all that coming up. First though Zain Verjee is back in Washington with a closer look at some other important stories making news right now -- Zain.

ZAIN VERJEE, CNN ANCHOR: Hi Wolf. The U.N. Security Council could vote as soon as Monday on a resolution requiring Iran to suspend its nuclear program by August the 31st or face possible sanctions. The initial draft supported by the U.S., Britain, France, and Germany, would have subjected Tehran to automatic sanctions if it fails to comply. And Russia and China oppose that. The U.S. ambassador to the U.N., John Boston, says the U.S. still views the current draft as a mandatory command.

A federal appeals court says investigators cannot review documents and computer disks seized from Louisiana Congressman William Jefferson's office until he can look at the items first. The court says Jefferson must then be given a chance to ask a judge to keep the documents private. Jefferson faces allegations he accepted $100,000 bribe. He denies any wrongdoing.

A House vote on a proposal to increase the minimum wage for the first time in a decade could come later tonight or tomorrow. House Republican leaders agreed to a vote if the measure also reduces inheritance taxes on multimillion-dollar estates. Some Democrats and Republicans aren't happy about that. The measure would increase the minimum wage from 5.15 to 7.25 an hour.

The death toll in California from the nearly two-week long heat wave continues to rise. Authorities say at least 63 people died as a result of the heat stress. They're also looking into the deaths of 53 other people. Most of the victims have been elderly. Temperatures across California have topped 100 degrees since July the 16th. But the weather's finely cooling off in some areas today -- Wolf back to you in Jerusalem.

BLITZER: Thank you, Zain. Thanks very much.

Just ahead a small town bombed, apartment buildings and roads pounded by warplanes. We're going to take you there.

Also, more talk while the fighting rages on. We're covering the diplomatic front where making peace is very slow going. Live from Jerusalem, you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: To our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, will Israel and Hezbollah forces agree to a 72-hour cease-fire? The U.N. Emergency Relief Coordinator Jan Egeland called for the truce today to allow humanitarian workers into critical combat zones.

There is a new threat to Israel tonight, the most powerful missiles launched by Hezbollah in this conflict. Israeli police say three rockets that hit northern Israel carry 220 pounds of explosives each.

And Lebanese security sources say an unmanned Israeli aircraft crashed into the mountains east of Beirut. An Israeli fighter plane bombed the site a short time later to destroy the sensitive spy equipment on board.

I'm Wolf Blitzer in Jerusalem and you're in THE SITUATION ROOM. Three days of peace would not be a long pause in this war, but it would certainly be a welcome relief from the non-stop clashes over the past 17 days. Let's get more on the call for a 72-hour cease-fire. Our senior international correspondent Nic Robertson is in Beirut. Nic.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Wolf, for some time now Hezbollah's leaders have been saying they will attack deeper into Israel, beyond the town of Haifa. It seems this day they made good on that threat.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): In Beirut, Hezbollah is clearly proud of what it calls the Khaybar-1, the missile that has a longer range than any the group has launched so far. Al-Manar TV, the Hezbollah affiliate station, shows a vapor trail arching up into the sky. This is not the actual missile, but underneath the video a banner proclaims Hezbollah has a new rocket, evidence of the guerrilla group's ability to carry out its threat to strike deeper into Israel.

As the situation becomes more dangerous, the United Nations peace keeping force is becoming more cautious, pulling out eight U.N. observers from the last two operational U.N. posts close to the Israeli border. This comes three days after one post was destroyed by Israeli fire, killing four observers. Another post had already been evacuated the day before after an Italian U.N. observer was wounded in the Israeli, Hezbollah crossfire.

Lebanese civilians are also increasingly caught in the middle. This humanitarian convoy, bringing villages trapped by the fighting to safety, was hit by Israeli fire, according to a group of French journalists, who were traveling behind.

We came across refugees who were walking towards us, a pregnant woman, an elderly people, says this reporter. We kept on walking until we reached the village of Beit Yahoun. At this moment the Israeli Air Force started firing just around us.

In the midst of all the violence word came from the U.N. for a 72-hour cease-fire to get humanitarian supplies in and to get the young, the old, and the wounded out. The initial reaction from members of a group aligned with Hezbollah was simply they would think about it.

(END VIDEOTAPE)

ROBERTSON: Later in the day Lebanese military intelligence sources confirmed that an unmanned Israeli surveillance aircraft crashed into the mountains east of Beirut. They say half an hour later Israeli fighter jets returned to the site and bombed the sensitive spy equipment on the ground. Israeli officials say the plane crashed because of technical issues. They say that they destroyed the equipment because they didn't want it falling into the hands of Hezbollah. Wolf. BLITZER: Nic Robertson, thank you very much. As we reported, Hezbollah has launched its most powerful rockets yet into Israel, with some of its deepest strikes into this country. Let's get some perspective from CNN's Tom Foreman. He's joining us in Washington.

TOM FOREMAN, CNN CORRESPONDENT: Wolf, you're absolutely right. These are the most powerful and they've gone the farthest of all the rockets fired by Hezbollah, but this may represent something of a false victory. Let's take a look at Afula down here. We're going to go across the border her, where it would have been fired from to come down this way. For a rocket like this to go that far with that sort of load is a pretty powerful rocket. This raises it above the level of those Katyusha rockets we've seen before. And it fulfills the promise of the Hezbollah leader who said he would strike south of Haifa.

This is south of Haifa, but not very far, and they didn't hit anything that really mattered to anybody. So that didn't help anything. On top of which is Israelis say they don't believe this is really an utterly new rocket, they think that this is the old Fajr rocket, which is a better quality rocket, but one they already knew they had. They think that Hezbollah just renamed it. What did Hezbollah lose in doing this, however? Look at the higher shot here. We know that the Fajr rocket, that we're talking about, the Fajr-5 has a range of about 45 miles. Look at this. If you look at where that would lead you to, you can see that the rocket fired here, if that's what it is, as the Israelis think, it had to be fired in this zone right there. Somewhere in that area. Remember, not a big country, about 40 miles side to side.

Every time a rocket gets fired, it is being tracked from the ground as much as the Israelis can, to figure out where it came from and to launch this kind of rocket you have to have a launcher on a truck. This is the big artillery. This is the big weapon that they have for Hezbollah. To fire these three rockets today, they had to expose that. And the Israelis are just looking for that moment to pounce in on it. Did Hezbollah fulfill what it said it was going to do and strike south of Haifa? Yes, it did, but not by very far, they didn't do much damage, and the question that we'll have to have answered over the next 24, 48 hours is what did they expose in doing it? And did they actually give up more than they gained? Wolf.

BLITZER: Good point. Thanks very much, Tom Foreman in Washington.

The United Nations relief convoy has now arrived in the Lebanese city of Tyre, even as a civilian convoy trying to flee was hit by a mortar. A large number of civilians are basically trapped in the area and conditions are growing increasingly dire. CNN's Ben Wedeman is there with the latest.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN CORRESPONDENT (voice-over): A red cross on a white bed sheet. Staff at Tyre's Njem hospital hope Israeli jets will see their flag and spare them. Just a few minutes away by car, smoke rises from another air strike. People head north by whatever means possible. No one knows how many people are still hunkered down in their homes in Southern Lebanon, hundreds of thousands have already fled north.

TONY LIPOS, SOUTH LEBANON RESIDENT: The situation over there, it's very bad right now. Everything is running out right now. There is nothing there. No food. No electric, no water. No medicine. Nothing. And a lot of old people there, too.

WEDEMAN: Refugees gather at Tyre's rest house hotel where local relief workers put them on buses to Beirut. They're exhausted, scared, desperate. Hanan Assi escaped the south with her family and $300 in her pocket. On a borrowed mobile phone she assures a relative everyone is safe.

HANAN ASSI, SOUTH LEBANON RESIDENT: There are a lot of people there. A lot of people need help. There are people with heart condition. Two people who are blind there. And everybody, it's just terrible.

WEDEMAN: The danger of travel by road is everywhere to be seen. And fuel is in short supply because many of the gas stations have been bombed.

(on camera): People who make it this far to the northern edge of Tyre have a good chance of reaching safety, but relief officials are far more concerned about people stuck in remote villages in the far south, who just can't get out.

(voice-over): The United Nations, the Red Cross, and other groups are doing what they can, but in the midst of war their hands are tied.

ROLAND HUGUENIN-BENJAMIN, RED CROSS SPOKESMAN: There are people who have been wounded, have not been evacuated until now and one other big issue there are people who have been killed, there are cars with dead bodies aboard, nobody's been able to get there to take them out and give them a decent funeral.

WEDEMAN: So, the living take their chances and go. Ben Wedeman, CNN, Tyre, South Lebanon.

(END VIDEOTAPE)

BLITZER: Let's go to Zain Vergee in Washington. There's a story coming in, Zain. What are you picking up?

ZAIN VERGEE, CNN CORRESPONDENT: Wolf, a developing story from Seattle. CNN's affiliate, KING, is reporting shootings at the Jewish Federation in downtown Seattle. We don't know many details at this stage, but KING is reporting that more than one person could have been shot. It's really unclear the extent of the casualties, KING is also reporting one or more people may be in custody. We'll bring you more details when we get them. Wolf.

BLITZER: Zain, thank you very much. We'll watch that story together with you.

Still ahead tonight in THE SITUATION ROOM jet ski terror, a water ride packed with explosives. An exclusive look at this threat by sea.

Plus under a microscope, Condoleezza Rice, watched for her every move. But did this one get blown out of proportion? The diplomatic controversy that wasn't. Jeanne Moos looks behind the lens. We're live from Jerusalem, and you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. We're live in Jerusalem following all the latest developments in the Middle East crisis. With its back to the Mediterranean, Israel has historically faced threats from three directions, but as we found out in this exclusive report, there may be some new threats from the sea.

Take a look at this extraordinary video which, until now, was classified by the Israeli military.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Take a close look at this extraordinary video provided to CNN by the Israeli navy. A seemingly innocent jet- skier races toward Israeli shores, ignoring repeated orders to stop. As a result, he's shot and killed. A senior Israeli navy officer says the jet-ski was loaded with explosives.

And check out this video. An Israeli naval vessel intercepts this small boat with two men on board. The same Israeli navy officer says, they are suicide bombers. The Israeli sailors survive, but are seriously injured.

Finally, take a look at this deflated raft the Israeli navy comes upon. Israeli sailors open machine gun fire to make sure there's nothing hidden inside. But, under fire, it explodes.

Here's how it looked from a second Israeli camera on shore.

(on camera): Most people think of the threats facing Israel coming from the north, whether from Lebanon, or from the east from the West Bank, or from the south from Gaza.

But there's another major threat facing Israel, and that's a threat from right behind me, the Mediterranean Sea.

(voice-over): The senior Israeli navy officer tells CNN, there have been 80 maritime terror plots that Israel has detected over the years. Most have been foiled.

Still, Israel has established an elaborate network of early- warning devices to monitor threats from the sea, including the nightmare of a cargo ship loaded with explosives.

And there's now heightened fear involving the Katyusha rockets that Hezbollah has been firing into northern Israel. RON BEN-YISHAI, ISRAELI DEFENSE ANALYST: The very same rockets that hit, say, Nahariya these days can be launched from the sea as easy, and even easier, than they are launched from -- from the ground. They have a prolonged-range Katyusha rockets, range of about 30 kilometers, that can be launched from very deep in the sea, way beyond the Israeli territorial water.

KING (on camera): We're here in Ashdod, Israel's major port along the Mediterranean. You can see the facilities right behind me -- waiting off the coast here, right off the beach, a few ships. They're waiting to bring some cargo into Ashdod -- Ashdod, all of a sudden, becoming even more important, now that Haifa, the big port up in the north, has been effectively shut down because of the rockets coming in from Lebanon, from Hezbollah.

If you go down a little bit further, down this beach is Ashkelon, another big Israeli town. That town, earlier today, saw two Israeli kids who were injured as a result of Palestinian Qassam rockets landing in Ashkelon, landing in a park.

Right down the road, only a few miles down from where I -- I am right now, is Gaza.

(voice-over): The bottom line for Israel, the threats come in all sizes and from all directions.

(END VIDEOTAPE)

BLITZER: Let's check back with Zain Verjee in Washington for some more headlines on the crisis in the Middle East -- Zain.

VERJEE: Wolf, in Muslim countries around the world, there have been protests today against Israel and the United States in the wake of the Middle East crisis. Hundreds of demonstrators turned out in Iran's capital, Tehran. They burned and stomped on the Israeli flag.

There were also anti-U.S. and Israeli protests in Kuala Lumpur in Malaysia, where Secretary of State Condoleezza Rice has been attending a regional security summit.

The United Nations says it's pulled peacekeepers out of two outposts in Southern Lebanon, fearing they'd be caught in the Mideast crossfire. The move follows the killing of four U.N. observers in an Israeli airstrike on another base in Southern Lebanon. A U.N. official says the situation is becoming extremely precarious.

Back to Wolf now in Jerusalem. And, Wolf, I wonder, what are the Israeli people saying about the new rocket that Hezbollah was able to launch deeper into Israel today?

BLITZER: They're very worried about it, Zain, deeply concerned, not only the Israeli people but the Israeli military, the government. They recognize that this Hezbollah group in Southern Lebanon may, in fact, have the kind of weapons that the leader of Hezbollah, Hassan Nasrallah, claims to have, weapons that can go further south than Haifa and potentially even reach Tel Aviv, the largest city in Israel, the major commercial capital of this country.

I've been trying to find out from experts here in Israel, Zain, if in fact Hezbollah has these missiles, has these rockets, why aren't they using them?

And the only good answer I've been able to get so far is that Hassan Nasrallah, the leader of Hezbollah, may be waiting for the right moment, because they know that once they use one, the Israelis will be able to pinpoint the location from which these rockets were launched, potentially destroying those launchers. They're pretty valuable commodities, but certainly the Israelis fear -- certainly they fear the worst, Zain.

VERJEE: How much support, Wolf, is there in Israel for the whole idea of an international force? What are some of the concerns?

BLITZER: They would support an international peacekeeping force, if A, it were robust and had thousands of troops; and, B, it would do what UNIFIL, the old United Nations observer force in south Lebanon, could not do which actually go out and not only be peacekeepers but peace makers, disarm Hezbollah.

If there are weapons or missile shipments, rocket shipments, coming from Iran through Syria into Lebanon, stop those shipments, in other words, take the kind of aggressive steps, the aggressive steps that they would like to see take to disarm that southern part of Lebanon, assuming the Lebanese army can't do it, at least not yet.

So the Israelis would be open to that -- in fact, they'd probably welcome it -- if this kind of force, Zain, had the muscle that it really needed and the political backing from the international community. Zain, thanks very much.

Still to come tonight, Condoleezza Rice in a fishbowl -- every movement, every word, dissected by the international news media. But did a simple gesture get blown up to a diplomatic misstep? Jeanne Moos will zoom in for a close-up.

Plus U.S. troops are being asked to stay longer than expected in Iraq. Is there an end in sight?

Live from Jerusalem, you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Secretary of State Condoleezza Rice doing some shuttle diplomacy in the Middle East. She returns to the region in the coming hours to continue to negotiate a cease-fire and it's on this world stage that her every word and her every move has the potential of making headlines around the world. CNN's Jeanne Moos takes a look inside the fish bowl.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): This is the smiling Condi Rice we're used to which made this seem all the more striking. (on camera): This was the other day when the talks were not going well.

UNIDENTIFIED MALE: She has a headache doesn't she?

MOOS (voice-over): The photo matched the grim headlines. Condi seemed worn down by a roomful of diplomats pushing for an immediate cease-fire that the U.S. resisted. "New York times" front paged the photo. It ran in conservative newspapers as well and on CNN's website. It ran everywhere. A picture worth a thousand jokes.

JOHN STEWART, THE DAILY SHOW: Let's see how it went. Oh.

STEVEN COLBERT, THE COLBERT REPORT: I think probably what's happening here is that she just lost a spelling bee.

MOOS: There was only one way to interpret it.

UNIDENTIFIED FEMALE: Frustration.

UNIDENTIFIED MALE: Discouraged.

UNIDENTIFIED MALE: Exasperated and exhausted.

UNIDENTIFIED FEMALE: I think she's saying oh, no.

MOOS: Oh yes, well look at this. Seconds after answering a reporter's question, Condi brushed her hand across her forehead, a minute later, assuming attention is turned at the Lebanese prime minister, who's speaking, she seems to brush her hair from her face. We'll see the flash bulbs go off. When we showed the video to folks, it changed their mind about the photo.

UNIDENTIFIED FEMALE: Now I feel very manipulated.

UNIDENTIFIED FEMALE: Deceived.

UNIDENTIFIED MALE: A hundred percent unfair.

UNIDENTIFIED FEMALE: It's not oh my god, it's I'm getting the hair out of my face.

MOOS: The flash bulbs pop even when Condi scratches. Any slight motion will be a trigger for a barrage of photographers firing their cameras say the Associated Press, one of many agencies to send out this picture. It's up to the subscriber how they choose to use the image.

UNIDENTIFIED MALE: The press being sneaky? Wow, that's unusual.

UNIDENTIFIED MALE: There's a lot of things the press does that are sneaky. This is not one of them.

MOOS: The "New York Times" said photographers always look for a moment of drama. CNN.com said it's representative of the event and we chose that one and others. The last time there was a Condi photo curfuffle it was when "USA Today" brightened a photo that was too dark, especially around the eyes. Critics said it demonized her.

(on camera): The moral of the story, if you're secretary of state don't scratch, or primp, and don't you dare run your fingers through your hair or you'll end up looking like this and raising eyebrows. Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

BLITZER: And while Condoleezza Rice engages in diplomacy in the Middle East, the British Prime Minister Tony Blair is back in Washington meeting with the president. Prime Minister Blair is facing his fair share of criticism back in England as well. For many in the UK today's visit with President Bush is seen as much more of the same. Standing by with the latest is our Internet reporter Abbi Tatton. Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, call for a cease-fire now, that's the headline in the left-leaning "Independent" newspaper today. Blair has been criticized by the British press in the last week for what they say is him not standing up to President Bush. Now, this isn't new. He's long been mocked in the U.K. for being George Bush's poodle. However these criticisms have been renewed in the past week because of that overheard conversation between the two leaders at the G-8 summit. They were discussing the Middle East.

It's known in the U.K. as the "yo, Blair exchange" for the way the president addressed the prime minister. One tabloid summed it up, saying that Blair looked like an eager to please brides maid, hovering at the top table. Now, yesterday in advance of this trip, the conservative leaning "Telegraph" paper came out with a poll by UGOV, showing that almost two-thirds of the Brits say that Blair sides with the Americans whatever the Americans say. With another joint appearance today, Wolf, it seems like that's a sentiment that's unlikely to change any time soon, Wolf.

BLITZER: Abbi, thank you very much. Let's find out what's coming up right at the top of the hour. That means Paula is standing by in New York.

PAULA ZAHN: Thanks Wolf. That will be in five minutes or so where we will go in depth on today's developments in the Middle East conflict. Our top story coverage includes a very close look at Hezbollah's army. What makes them so difficult to defeat?

We're also going to explore why so many ordinary Israelis are resisting the idea of any kind of cease-fire.

Those stories plus live updates from the front lines coming at you in just about four minutes and 30 seconds, Wolf.

BLITZER: We'll be watching, Paula, thank you very much.

Still ahead, we'll have an update on that shooting at the Jewish community center in Seattle, it's a developing story. We'll have the latest when we return.

And U.S. troops being kept in Iraq longer than planned. Is there an end in sight? Jack Cafferty with your e-mail. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We're following developments in Seattle, disturbing developments. Zain Vergee joining us again with details, Zain.

VERJEE: Wolf, CNN affiliate KING TV reports that a SWAT team is now searching the Jewish federation in downtown Seattle right now, room by room. They're looking for any other victims, anyone hiding or any possible shooters, because this all is following a shooting that left at least two people injured. They've been taken to the hospital. One person is reportedly in custody. Police say that they have no motive at this point. People who worked in the building report hearing screaming, gunshots, and the apparent sound of furniture crashing. A portion of Seattle's downtown area has been closed off right now. We'll bring you any more developments when we get them. Wolf.

BLITZER: Zain, thanks very much. Let's check back with Jack Cafferty in New York, Jack.

JACK CAFFERTY, CNN ANCHOR: How much longer will troops be in Iraq?

Frank in New Jersey, "We've been in South Korea 50 years. They're not sitting on an ocean of oil, as Iraq is. If we haven't managed to incinerate the planet in the next 50 years, I'd be we'd still be there."

Jack in Las Vegas, "My prediction is they're not going anywhere because they're strategically situated to move into Iran and also, if need be, have forces move in to Israel. Staying there has nothing to do with Iraq any more."

William in Toledo, Ohio, "As long as it takes, Jack. Why do the media mostly paint a picture of doom? We're doing great things in Iraq, please report those also."

B.L. in Harrisburg, "Considering there's talk of permanent military bases being constructed in Iraq, my guess is the troops will leave when I'm dead and gone, and I'm 26."

Deborah in Littleton, Colorado, "Our troops will be in Iraq until the American people put their foot down and demand that they be brought home."

And Richard in Seattle, "Jack, U.S. troops will be in Iraq until the all the countries in the Middle East have settled comfortably in to classical western democracies, who all love Israel."

If you didn't see your e-mail here, you can go to CNN.com/CaffertyFile where you'll find some more of these online, Wolf.

BLITZER: Jack, thanks very much. See you back in New York on Monday. I'll be back here all weekend covering this crisis in the Middle East. Sunday on "LATE EDITION," a special "LATE EDITION" we'll speak to top Lebanese, Israeli, and Syrian leaders. "LATE EDITION" airs 11:00 a.m. Eastern Sunday. Until then, thanks very much for joining us. Let's go back to New York and Paula Zahn, Paula.

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