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No Wide-Scale, Robust Movement of Forces into Lebanon Yet; Margaret Beckett Interview; Two Suspects In Terror Plot May Have Had Contact With Pakistani Suspected Of Being Al Qaeda Operative; National Guard Arriving in California Airports To Beef Up Security; Anthony Weiner Interview

Aired August 11, 2006 - 16:00   ET

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

WOLF BLITZER, CNN ANCHOR: Thanks very much, Susan.
And to our viewers, we are 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, breaking news here in the Middle East. Critical new advances in war and in the drive for peace. A new U.N. Security Council resolution before the Security Council right now, but a wary Israel has launched its expanded ground offensive anyway. It's 11:00 p.m. here in Jerusalem where Israeli officials are reviewing the new U.N. draft plan right now.

Plus naming names in the foiled airline terror plot. It's 9:00 p.m. in London where British officials identified some of the suspects in custody.

And there's new evidence today of link to Osama bin Laden's terror network.

Plus airline security on the line. Passengers still are struggling with the new rule against any liquids. Are the long waits at the airport easing? We're going to let you know what to expect before you fly. I'm Wolf Blitzer in Jerusalem, you are in THE SITUATION ROOM.

Investigators still are hunting for clues about the terror plot that could have rivaled the 9/11 attacks in bloodshed and shock value. We're following new details emerging about the probe and the state of airline security. Much more on that coming up.

But first the breaking news here in the Middle East and at the United Nations. Right now Secretary of State Condoleezza Rice is getting what she wanted at the United Nations. The Security Council is being presented with the final text of a resolution on this Middle East conflict. Among other things it apparently gives a robust mandate to U.N peacekeepers already in Lebanon. Key council members hoping for a vote later today.

And just a short time before the U.N. deal was struck, Israel launched its wider ground war against Hezbollah fighters in southern Lebanon. Israeli officials gave the order, saying U.N. negotiations had taken a, quote, wrong turn, but now there are fresh signs that Israel may be open to accepting the revised resolution and calling off its expanded military offensive. We are standing by for details on that and our reporters are watching all the military and diplomatic issues unfold on the front line.

Brent Sadler is standing by in Beirut. First though, let's go to Matthew Chance in northern Israel with the latest of what you are seeing on the ground.

Matthew, you are joining us on the phone. We know several hours ago the prime minister of Israel gave the IDF, the Israel Defense Forces, formal authority to go into Lebanon on a much more robust force, to go in with a very strong force, indeed. What is the latest? What are you seeing on that front as the diplomats try to resolve this issue in New York?

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Well throughout the day, Wolf, we have been seeing troops and tanks and armored vehicles really readying themselves for the possibility of going into battle. Within the last few minutes, we have seen a number of them move towards the Lebanese border, which is just a short distance from where I am talking to you right now.

But we haven't seen, yet, a wide-scale robust movement of forces into Lebanon that has been promised by Israel, if the diplomatic process does not produce satisfaction for them. It's clear that we are seeing some kind of political and military brinkmanship being played here, played out here, as the United Nations considers this latest resolution and diplomats work hard to try and get a compromise that all the warring parties and all the countries on the Security Council will accept.

Israel is hanging this threat of increased military actions over south Lebanon and has yet to actually make good on that threat. But as I say, there's been a big build-up of force along the Lebanese border. There has been some movement towards the Lebanese border, but not yet could I say with honesty, Wolf, has that full-scale invasion that has promised really begun in earnest.

BLITZER: I think it's fair to say, Matthew, as I am hearing from authoritative Israeli sources here in Jerusalem, they are waiting. They are waiting patiently to see what's emerges in this U.N. Security Council draft resolution. They now have the text and over at the prime minister's office they are reviewing it right now to make sure it's as effective as Israel wants.

If Israel is going to go forward with a cease-fire, they want to make sure that Hezbollah is disarmed, that Hezbollah no longer gets any additional rockets, that the rockets that are already there are destroyed or returned to the Lebanese army or the United Nations.

These are all very difficult, sensitive issues for the prime minister, Ehud Olmert, as is this issue of an unconditional return to Israel of those two Israeli soldiers, kidnapped back on July 12. But I just want to be precise right now, Matthew, you are up there on the border, so far, even though the authorization has been granted by the prime minister to the Israeli army to move into south Lebanon with phase two of this military campaign, it has not formally started, yet, at least you don't see any hard evidence that a few divisions, two or three new divisions of Israeli troops and armor and tanks are moving into Lebanon?

CHANCE: No, not yet. But I think we have to remember that there are at least 10,000 to 12,000 Israeli troops that are already on the ground in southern Lebanon and they are still engaged in fierce fighting against Hezbollah guerrillas. What we have seen, again, is that build-up of many dozens of tanks, perhaps, hundreds of them.

I haven't been to all areas of the border, so I can't say for sure how many tanks there are, but certainly, large numbers of forces have built up here. If the order, Wolf, is given to expand that operation, for the military command to actually give the go-ahead for the troops to enter south Lebanon in that expanded operation, it will be a very robust force indeed, with heavy armor and many thousands of troops backing them up as well.

And so, certainly, Israel has made it clear that it wants this diplomatic process to work, but if it doesn't it has a military option very firmly on the table and it is very ready to use it, Wolf.

BLITZER: All right, Matthew stand by, we're going to be coming back to you. Let's go up to Beirut. Brent Sadler is up in Beirut. What's the latest you are hearing, first of all, Brent, on this new U.N. Security Counsel resolution? Is it acceptable to the government of Lebanon, but perhaps more significantly, is it acceptable to Hezbollah?

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: Wolf, I think, first of all, the indications inside the camp of Lebanese Prime Minister Fouad Siniora is that there's cautious optimism that if this Security Council resolution gets through in New York, that it will be acceptable from the Lebanese side.

Otherwise the diplomatic activity that's been intense here today would have failed, because the indications are, through the representative in these talks, Nabi Beri, who speaks for Hezbollah, has made it clear that providing their conditions are met, which would be a withdrawal of Israeli troops, with an international guarantee, then Hezbollah would go along.

But there's still concerned, of course, that at last minute Hezbollah could balk, not least over the issue of a prisoner swap, sending those two captured Israeli troops home in exchange for prisoners that Hezbollah wants back. There's no mention of that, specifically a return of Lebanese or Palestinian prisoners, in that Security Counsel resolution.

Now, Wolf, there's a developing story going on right now in the Bekaa Valley. We understand from Lebanese security sources here that a convoy of Lebanese army vehicles that were taken out of Marjayoun, has been a scene of heavy Israeli/Hezbollah fighting over the past few days, a convoy of Lebanese army trucks, brought out under the umbrella of a coordinated movement with the United Nations and the Israelis had about 1,000 vehicles, we are hearing, tagged along to that convoy as it left the battle zone, has been hit by Israeli air fire.

The acting interior minister here Ahmad Fattfat saying that a number of missiles were fired at the convoy, killing at least four people and injuring 19 others, including two officers from the Lebanese army. The latest report I got, Wolf, just before coming on air. and this is coming from security sources here in Lebanon, is that vehicles, civilian vehicles that tagged onto that convoy, are ablaze, that the Israeli Air Force is conducting more air strikes around the area, that's preventing Lebanese emergency services reaching that scene. As I say, more than 1,000 vehicles tagged along with that convoy to escape the fighting zone. Who is in those vehicles?

Well they are saying civilians, but of course in this war we do know that Hezbollah mixes in with the civilian population and it may be that Israel is acting on some intelligence that it's not civilians alone that escaped that battlefield. So a very important developing story going on right now, Wolf.

BLITZER: And we will stay on top of that developing story, Brent, but I just want to be precise. Because Israeli officials here insist that there's not going to be a deal unless they get those two soldiers back unconditionally. Is that something that, based on everything you're hearing from the Lebanese government, as well as from sources close to Hezbollah, that Hezbollah is ready to do?

SADLER: The sense I'm getting is that the time is ripe for a cessation of hostilities, in line with what's contained in that draft resolution -- that resolution, rather, that will be put now, in a few hours, before the Security Council. I get the sense here that Hezbollah believes the time is right.

And I get the sense, also, that once this resolution is passed, if it is passed, you will see a very quick reaction from the international community to get boots -- some U.N. helmeted boots -- on the ground as quickly as possible, particularly as it's felt that the whole thing could very quickly spiral out of control beyond the help of diplomacy if the kind of incident we are getting reports from now in the Bekaa Valley complicate and worsens diplomatic chances to achieve a break-through -- Wolf.

BLITZER: Brent, thank you very much.

I want to go right back to Matthew Chance. He's along the border between Israel and Lebanon. He's picking up some additional new information. What are you getting, Matthew?

CHANCE: Well, Wolf, I have just changed my location. I have come to a raised vantage point overlooking the Lebanese border. I can tell you that, in fact, Israeli tanks have now crossed the border from Israel into Lebanon in what looks like the same kind of limited incursion that we have been seeing and witnessing along this border for the past several weeks.

I don't know whether you can hear the explosions behind me, but -- it's difficult to pick up on a telephone handset, but let me tell you, there does seem to be very fierce fighting underway now as Israeli forces actually move in tanks and armored vehicles, as well as ground personnel, across the frontier to the north with Lebanon and are engaged in fierce fighting at the moment.

I can see red tracer bullets being fired from machine guns and explosives going off on the sides of the hills. But it's darkness here now so it's difficult to actually get a really good picture from this vantage point without night vision which we haven't assembled yet, about exactly what the lay of the land is and what the precise movements are of the troops are on the battlefield.

But, again, it does seem that the Israeli forces have now entered Lebanon, again, following the order from the Israeli prime minister, of course, to expand those military operations. But we can't say for sure yet, whether this is the robust invasion that has been promised if the diplomatic process didn't produce satisfaction for the Israelis, Wolf.

BLITZER: All right, Matthew. Thank you very much. We're going to get back to you and watch what's happening on the ground moment by moment throughout this program here in THE SITUATION ROOM.

But I want to go back to the United Nations right now. Joining us is the foreign secretary of Great Britain, Margaret Beckett of the United Kingdom.

Foreign Secretary, thanks very much for joining us. Is everyone on board now? The United States, Britain, France, Russia, China -- based on what you know, are all the major players at the U.N. Security Council in support of this draft resolution that's been tabled?

MARGARET BECKETT, U.K. FOREIGN SECRETARY: Well, we don't know yet. I mean, certainly we are, as are the United States and France. There's been no indication that the Russians are not. The Chinese are in consultation.

There is a generally positive atmosphere and a strong recognition on everybody's part that the longer this goes on, the greater the danger that there will be some other traumatic event which will seriously disrupt the prospects for peace.

So there's a sense of urgency about getting this resolution done tonight.

BLITZER: And what time do you estimate there will be a final vote among the 15 members of the United Nations Security Council?

BECKETT: Well, we hope the council will meet about half past 6 at the latest, an hour and half, two hours, your guess is as good as mine. But hopefully, as I say, this evening we would like to see that vote.

BLITZER: Here are a couple of the issues that authoritative Israeli figures have raised with me over the past several hours that they're looking for. And maybe you can clarify some of their concerns. For example, this beefed up UNIFIL, United Nations Interim Force In Lebanon, this beefed up U.N. military presence there -- perhaps as many as 15,000 troops -- will they operate under what's called Chapter 6 rules or Chapter 7 rules, which the Israelis clearly want Chapter 7, meaning that they would have the ability to use force if necessary to secure the area?

BECKETT: This is a good example of the difficult balancing act that the negotiators have had to pursue. The Israelis want Chapter 7. The Lebanese want Chapter 6.

What you've got is a strong mandate which should be good enough for the job. But you have to look at the detailed wording.

But neither Israel nor Lebanon has got everything they want. And that's the way of things. That is how you get a deal; that hopefully you get enough of what people need, but no one will get 100 percent satisfaction.

BLITZER: So, in other words, if neither Chapter 6 nor Chapter 7, it's something in between? Is that what you're saying?

BECKETT: Well, it's formally Chapter 6, but it is a very, very strongly worded and very clear mandate.

BLITZER: Will the U.N. forces who come in, especially the French -- will they be able to man, patrol the border between Syria and Lebanon to make sure that no additional rockets, military equipment comes in to Hezbollah?

BECKETT: Well, the whole idea of an international force helping and supporting the Lebanese army is to make sure that Lebanon takes control of the whole of their territory, and that arms only pass into or are only deployed in Lebanon with the consent of the Lebanese government.

And it will be their clear responsibility, assisted and supported by the international community, to ensure that.

BLITZER: So I take it the U.N. troops that will be there will not necessarily be inspecting cargo, inspecting convoys coming into Lebanon from Syria...

BECKETT: No, I don't think...

BLITZER: ... because, as you know, this is a major sticking point that the Israelis have sought.

BECKETT: I don't think you can assume that.

I think it's simply that the two forces will work together in order to achieve what is necessary to give control of Lebanon back to the government of Lebanon and, indeed, to make sure that arms are not permeating through the country that are not agreed to by the government of Lebanon. And I repeat: Israel will certainly not get everything that they have sought in this resolution; neither will Lebanon. But if the negotiators have done their job well, there will be enough not only for there to be a cease-fire, but for there to be a political agreement that can give us a basis to move toward a sustainable peace.

That is what is needed.

BLITZER: A final point the Israelis insist on is the unconditional and the immediate return of those two Israeli soldiers, a sine qua non they say, as part of any Israeli effort, any Israeli desire to go ahead and stop the fighting.

Are those two soldiers part of this deal?

BECKETT: There is a very clear statement about the soldiers in the resolution.

BLITZER: The statement says they should be returned unconditionally. Will they be returned? Because in the next paragraph it says the Israelis should also talk about returning Lebanese prisoners in their custody.

BECKETT: Look, the position is quite simple and it's quite clear. There is an agreed text agreed between the French and the Americans, and after extensive discussion with Israel and with Lebanon. The next task is to get that text through the Security Council.

And then the task is to implement and monitor it. And the resolution asks for the secretary general to report back to the Security Council within a week on the monitoring and the implementation.

We have to get the resolution first, and then we have to get the job done.

BLITZER: And finally, what about Shebaa Farms, that tiny sliver of land that is along the border between Israel and Syria and Lebanon? Lebanon says it's part of Lebanon. The Israelis occupy it; have occupied it since 1967. They say it's really part of Syria.

What is your understanding of what this new U.N. Security Council draft resolution mandates that Israel do as far as Shebaa Farms?

BECKETT: The resolution is quite carefully worded on Shebaa Farms, and I think you need to wait to see it.

But, obviously, this is an issue which people will need to look at in the future.

BLITZER: What is the position of the United Kingdom? Who should get Shebaa Farms?

BECKETT: I'm not going to get into that, I'm sorry. As I say, the resolution has been very carefully worded. The whole idea is to give a solid and sound basis for agreement. And I'm not going to venture into territory about what might be nice.

I simply tell you: The important thing now is to get that resolution through, get that cease-fire, stop this violence, and build a sustainable peace.

BLITZER: Margaret Beckett, thanks. I know this has been a hectic day for you. Thank you so much for clarifying and explaining to our viewers precisely what is going on at the United Nations Security Council.

BECKETT: Thank you.

BLITZER: This is an issue of critical importance, life and death, to so many people right here in the Middle East in this part of the world. Appreciate your spending a few moments with us.

And Jack Cafferty is off, once again, today, but I can assure you, he will be back on Monday with "The Cafferty File."

Coming up, much more on our top story. I'll speak with the Secretary of State, Condoleezza Rice, about the new U.N. Security Council Resolution. That's coming up in our next hour.

And I'll also ask Ambassador Gideon Meir, a top Israel Foreign Ministry official, if his country is planning to accept this peace deal or will the military invasion, phase two, go into effect in the coming hours.

And we'll also have more on our other top story unfolding today, airport insecurity. Are Americans getting used to the new rules? We will go live to one of the country's busiest airports and new leads into those behind the alleged terror plot that was busted yesterday. We're going to have the latest on the investigation and the Pakistani connection.

Stay with us live from Jerusalem, you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We're watching the diplomatic developments unfold at the United Nations Security Council right now, an important U.N. Security Council draft resolution, which has the support of the Bush administration, of France, of Britain, other members. That's about to be discussed and debated over the next few hours. It could have a huge impact, a life and death issue right now. In fact the United States ambassador to the United Nations John Bolton is speaking now.

JOHN BOLTON, U.S. AMBASSADOR TO THE U.N.: We are hoping for a unanimously adopted resolution later today. We will keep our fingers crossed but things are certainly moving in that direction. I think this will be a very important step for the council to take, as evidenced by the number of ministers who are here. Beyond that, Secretary Rice, of course, will cast our vote and give our explanation of vote and I think with that I should really withhold any further comment and let her give the official U.S. position which should be fairly soon after 6:30, since we are first on the speaker's list. But thank you all very much. See you later.

BLITZER: All right John Bolton, the United States ambassador to the United Nations, saying that Secretary of State Condoleezza Rice will formally explain the U.S. understanding of this draft resolution, and whether or not she is going to, in effect, urge the Israelis, I assume she already is, to go ahead and support it. I know that going into this text, and top officials of the prime minister's office are reviewing it right now.

Israeli officials not very happy with several key elements of this draft resolution, this only hours after the prime minister formally authorized the Israeli military to begin preparation for a massive new invasion, phase two of this war, in effect, if the Israelis don't like this resolution. We are going to be watching this in the next hour and we are planing on speaking live with Secretary of State Condoleezza Rice.

There's another important story we are following right now. British investigators trying today to zero in on an al Qaeda connection as they continue to piece together a foiled plot to blow up U.S.-bound airplanes. British and U.S. officials tell CNN two suspects in the terror plot may have had contact with a Pakistani, suspected of being an al Qaeda operative. British officials today released the names of 19 of the 24 British men arrested in the terror plot and the Bank of England froze their accounts.

Meanwhile, the going isn't quite as difficult today at airports in Britain and the United States, but you can expect still some major delays. Passengers in the U.S. are facing a second level of security today with random bag searches at airline gates and with most liquids barred from carry-on luggage. Airlines are scrambling to recruit more handlers for the influx of checked bags. The Homeland Security Secretary Michael Chertoff went to a Washington airport today to reassure fliers.

(BEGIN VIDEO CLIP)

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: Flying is safe. It is safe precisely because of the measures we are taking here and have been taking elsewhere in the world and the commitment of people of TSA is to keep it safe.

(END VIDEO CLIP)

BLITZER: Let's get some more now from CNN's Kelli Arena. She's watching all of this unfold, our justice correspondent. Kelli, what have we learned in the course of today of evidence that there was in fact an al Qaeda connection?

KELLI ARENA, CNN JUSTICE CORRESPONDENT: We can start with the money trail, as you know, Wolf, there was, investigators tell me that there was money that was sent from Karachi, Pakistan to the alleged operatives in Britain. As you know, Pakistan has long been described as a home base for al Qaeda operatives. There was also a meeting between two of the British suspects, according to U.S. officials, and an al Qaeda operative, Matiur Rehman. He's described as an explosives expert. He is still at large.

We also are told by U.S. intelligence sources that one of the British men in the group trained at an al Qaeda camp in Pakistan. So no one is coming out right now and saying that this was an al Qaeda- directed or lead attack but there certainly are serious connections that investigators are looking at. And at the end of the day, Wolf, it may turn out that there was a great deal of support from specialists in Pakistan for that British group.

BLITZER: Is there any evidence that you've picked up, that U.S. law enforcement has picked up at this point, Kelli, that any of the suspects in Britain or perhaps elsewhere in Pakistan, maybe elsewhere, that there's any connection to anyone here in the United States?

ARENA: Wolf there have been several phone calls that have been traced, that were made recently, from that group in Britain to the United States. The FBI has a couple of hundred agents that have been working on this investigation for some time. And there's been a sharp increase in the number of secret FISA warrants that are used in terrorism investigations to tap phones and do searches and so on.

Right now none of those leads has panned out. It looks like we are all clear, although leads do keep coming in to several field offices here, FBI field offices in the U.S., but all my sources, Wolf, tell me that so far no one in the United States seems to be connected in any way to that plot. But as I said, this is an investigation that is ongoing.

BLITZER: And what about the initial tip? I know this is a fascinating part, a critically important part of the story, how law enforcement in Britain actually got wind of what was going on?

ARENA: That's right, it was right after the summer attacks last year in London. Everyone was on edge. The alert level very high. There was someone within the Muslim community there in London who was watching an associate of his, said hey, you know, this guy is not acting right, something peculiar here, alerted law enforcement and law enforcement opened up an investigation on that initial tip. And sure enough they say that, you know, there was a lot of meat there, which gets us to today.

So, that cooperation between the Muslim community, not only in London, but here in the United States, critical, Wolf. We have heard this from the FBI and the Justice Department, you know, time and time again, how critical that communication is between law enforcement and the Muslim community. Here, it seemed -- if the allegations are true, it seemed to have saved, you know, hundreds of lives.

BLITZER: Kelli, thank you very much -- Kelli Arena reporting, doing some excellent reporting for us. The first National Guard troops are now arriving at California airports to help beef up security, with the nation now on a higher state of alert for new terror attacks.

CNN's Kareen Wynter is joining us from Los Angeles International Airport with more.

What's it like there, Kareen?

KAREEN WYNTER, CNN CORRESPONDENT: Well, Wolf, the big bulletin here at this hour out of LAX is that things are slowly, slowly beginning to get back to normal here.

In this very terminal where we are, domestic flights, everything on schedule. There are going to be delays, of course, here and there. As for international flights, especially those coming in from the U.K., there are a lot of delays on that, Wolf.

And you would think, the day after a major, major threat to our national security, that there would be a lot of chaos, a lot of confusion here, especially with passengers arriving.

Now, don't get me wrong. This morning, this very area that we are standing in was quite cramped, quite crowded. But we noticed throughout the day that things started to move a lot smoother. Many passengers I spoke with said: Hey, I wanted to get here on time.

Some people got here three, four hours in advance of their flight -- many others also mindful of the new security restrictions in place, when it comes to carry-on items, the liquids, the gels. And, so, that is some of what we have noticed.

You mentioned, Wolf, the California National Guard that's also on the ground here. They are definitely making their presence felt. They are not in our direct view. That's because they are placed at strategic locations all across the terminal at boarding areas, where people are actually getting to board their flights.

And the reason they are there is that officials here say they want to make sure that they are the last set of eyes and ears for those who are getting on board. So, they want to make sure that they don't have anything in their baggage that shouldn't be going on.

About 200 arrived here today. That's how much the airport authority requested -- but, in addition to that, bomb-sniffing dogs on the ground here, Wolf, the California Highway Patrol -- so many law enforcement agencies involved, too many to name.

And, yet, this -- despite the heavy amount of traffic that flows in and out of LAX each day, officials say absolutely no security breaches -- Wolf.

BLITZER: All right, Kareen, thank you very much -- Kareen Wynter reporting for us from LAX.

And, to our viewers, stay tuned to CNN day and night for the most reliable news about your security.

When we come back: A United States congressman gets a very close-up view of the front lines between Israel and Hezbollah. The New York Democratic Congressman Anthony Weiner, he's standing by to join us live here in Jerusalem. We will get his take on the conflict and the prospects for peace.

Plus: the money behind the names and behind the airline terror plot. We are going to get a closer look at the suspects' now frozen finances.

We're live in Jerusalem, and you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. We're reporting live from Jerusalem.

Democratic Congressman Anthony Weiner of New York has come to the front lines here in Israel. He has been at the Israeli-Lebanese border. He has been speaking with Israeli troops.

He also met this week with Prime Minister Ehud Olmert.

Thanks very much, Congressman, for coming in...

REP. ANTHONY WEINER (D), NEW YORK: It's my pleasure.

BLITZER: ... to THE SITUATION ROOM.

This draft U.N. Security Council resolution which the U.S., Britain, France now support, it doesn't address some of the major concerns that the Israelis have expressed, especially the mandate that these potentially 15,000 U.N. troops might have on what they could do if there's weapons coming into Hezbollah.

But the U.S. supports it now. It's under Chapter 6, as opposed to what the Israelis wanted, a more robust Chapter 7.

WEINER: Yes.

BLITZER: What do you think? What do you make of this development?

WEINER: Well, if the Israelis support it, they are really taking a leap of faith.

I mean, the very first words in the entire resolution refers to the fact that 425 and 1559, two resolutions that were supposed to have solved this problem, literally, years ago, haven't been implemented. You know, they're going to ask the Lebanese army, which I think a lot of people would acknowledge doesn't have the muscle to move Hezbollah, even if they wanted to.

And, yet, it's going to ask Israel to essentially leave now thousands of rockets in place in Lebanon. Now, if they -- if the Israelis support it, you know, it's just another example of how the Lebanese -- the Israelis, rather, usually embrace diplomatic solutions wherever they can.

But I am not sure that it's much of a victory. And I would, frankly, be surprised if the Israelis do support it.

BLITZER: Well, if they do support it, it would be, in part, because they would be under some pressure from the United States, which now says, "You should go ahead and support this," even though it doesn't meet all of Israel's wishes.

Margaret Beckett, the foreign secretary of Britain -- and we just interviewed her -- she says, look, Israel is not going to get everything that it wants, but this is better than continuing the war.

WEINER: Well, listen, there's no doubt about it. Every lost life is -- is hugely important here in -- in Israel. And they would like to not be in this situation, from everyone I have spoken to.

But I'm a little concerned -- and I'm sure the Israelis are going to express this as well -- that this resolution seems to lock in a status quo that is not very good for Israel, which is, still, there are thousands and thousands of Hezbollah rockets on their northern border. And there's no sense whether or not the Lebanese have the power to remove them.

Now, if the United Nations forces are really in there, empowered to help to do this, then, this might be a step forward. But there's nothing that I read in the resolution that really says that. It just says that they are going to hang around to help out with materiel, when they can. But it's not really clear who they are even authorized to shoot at, if push comes to shove.

BLITZER: He's in a very, politically speaking, Ehud Olmert, the prime minister of Israel, precarious position right now.

Over the past month, they were expecting this war to go a whole lot better than it has gone. And if, now, they accept this cease- fire, as presumably going to be approved by the U.N. Security Council, there's going to be a lot of questions in Israel about his conduct of this war.

WEINER: Well, listen, the citizens of Israel are unified. They're supporting the troops, as is often the case during wartime. But you are already starting to hear some of those questions getting asked.

And the much larger question, if you look at places where Israeli forces have left, on the north, in Lebanon, in the south, in Gaza, those are two places that are now being used to be launch terror at Israel. It does raise a question about his overarching view that, if you give their -- Israel's enemies what they ask for, which is land, that it will lead to more peace. It certainly hasn't meant that in the neighborhood here.

And I think the prime minister is in a very difficult spot. But, frankly, the world community is being tested here, too. And, clearly, they failed, if we leave this problem the way it is. BLITZER: While I have you, let's talk a little bit about this terror plot involving the U.S.-bound planes from Britain.

There's a lots of political punditry out there suggesting, this is going to be good for the Republicans -- you are a Democrat -- because it underlines, once again, that there is this war on terrorism. And, traditionally, when people are nervous, they will probably vote for Republicans.

Is that a fair assessment of the political mood back home?

WEINER: Yes.

It's a fair assessment to say that national security is an issue that we, as Democrats, have to figure out how to wrestle with. Now, what many of us are saying is that, frankly, though, the continued war in Iraq is actually draining our resources from other places.

But my friends in the Democratic Party -- you know, and I'm a Democrat with a capital D -- this is a great moment, is a good moment, that we caught these guys before they were able to do any harm to the United States or elsewhere.

But, as a political imperative, we have still got to figure out how it is we put as many resources as we can to truly fighting terrorism. And is the war in Iraq helping or hurting us? That's an open question, how the American people are going to view that.

I believe we should be moving our troops out, so they can do more anti-terrorism things places, you know, to help suppress problems in Iran, in North Korea, and, frankly, in other places around the world, where they can probably do more good. That's going to be the question.

But you are exactly right, Wolf. This is a problem Democrats have, where, you know, some people see us as not being up to snuff on national security. And the only reason why we now have surpassed the Republicans in just about every poll is because the Republicans are weak on this as well.

BLITZER: One final question: What's the major lesson you learned, personally, from Joe Lieberman's defeat in Connecticut?

WEINER: You know, it -- this is actually less than meets the eye. When you take unpopular positions on the war, unpopular positions on Terri Schiavo, unpopular positions on President Bush, you are going to do not very well in a Democratic primary.

I still think he is going to wind up doing very well in a three- way, as an independent. I honor him for his service. But there's no surprise, when you take positions like his, you are going to get a comeuppance in a Democratic primary.

BLITZER: So, you will support Ned Lamont?

WEINER: I am a Democrat. What... BLITZER: So, you will support Ned Lamont?

WEINER: I am supporting Ned Lamont, but I'm not going to be shedding any tears if Joe Lieberman returns to the Senate.

BLITZER: Congressman Weiner, thanks for coming in.

WEINER: Thank you.

BLITZER: And up next, we are going to continue to follow all the breaking news we're watching, including the effort to try to get some sort of cease-fire, an end to the fighting under way here in the Middle East. I will speak with a top Israeli Foreign Ministry official. We will get the official reaction from the Israeli government to this new draft U.N. Security Council resolution.

And, in the next hour, I will speak live with the secretary of state, Condoleezza Rice.

We are also gauging the mood on the streets of Jerusalem. Are Israelis starting to question the way this war has been fought and whether their prime minister is up to the task?

Stay with us. We will be right back.

(COMMERCIAL BREAK)

BLITZER: Want to go to Zain Verjee in Washington. There's a developing we're -- a -- a development we are watching in the terror plot story.

Zain, what are you picking up?

ZAIN VERJEE, CNN ANCHOR: Wolf, we are picking up, from wire agencies, that British police have released one of the suspects in the plot to blow up airplanes from the United Kingdom to the United States.

British police, as you know, Wolf, said yesterday that they foiled this plot to blow up as many as 10 U.S.-bound airlines, with liquid explosives smuggled on board in soft drink bottles. That's what we are getting now, that one of the suspects has been released.

We don't know details about who this person is. But we will bring you more when we get them -- Wolf.

BLITZER: Zain, thank you very much.

One month into the fighting here in the Middle East, there are now some signs of growing pessimism among Israeli citizens. We took to the streets of Jerusalem to see what people are saying here.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Nobody is winning this war. Both of the sides have a lot of injured people that died. UNIDENTIFIED FEMALE: I think that there's no solution to this problem. You know, even when Israel go inside Lebanon and shoot -- like, destroyed all Lebanon.

BLITZER (voice-over): Those sentiments here in Israel, before today's developments at the United Nations, mirror a new poll on the fighting in the Israeli newspaper "Haaretz."

It says, 44 percent of those asked believe neither side will emerge the winner. Thirty percent say Israel is losing outright, while 20 percent say, if the fighting stopped now, it could be considered a victory for Israel.

But, even among them, there's a growing weariness here over the duration and loss of life.

UNIDENTIFIED FEMALE: I think it's going to be a long time. But, in the end, Israel is -- is winning the -- in this war.

UNIDENTIFIED MALE: I said Israel is winning.

UNIDENTIFIED MALE: OK.

UNIDENTIFIED MALE: But we got a lot of people of -- dead, you know.

BLITZER: Another poll here in Israel, this one in the "Yedioth Ahronoth" newspaper, shows a decline in Israeli support, as the fighting drags on.

It says, 64 percent now support an expanded ground operation in Lebanon, down from 73 percent just weeks ago -- also slipping, according to the same poll, support for Prime Minister Ehud Olmert.

He has faced criticism for what some here portray as weak military experience. The "Yedioth Ahronoth" poll puts his approval rating now at 66 percent, down seven points in recent weeks.

Those we talked to on the street of Jerusalem have mixed opinions on Olmert.

UNIDENTIFIED FEMALE: He's doing a very good job, I think.

UNIDENTIFIED MALE: Maybe they -- the best he can. But it's so complicated. So, I don't know if somebody else can do it better.

UNIDENTIFIED MALE: Politically, I am on the right side of the map. And I think it's -- I think -- I'm very, how do you say? We are -- we want Sharon to come back.

(END VIDEOTAPE)

BLITZER: And coming up: Chances are, your senators already are thinking about the November congressional elections. But will it be the war in Iraq or the war on terror that voters are thinking about at the ballot box? And the U.N. Security Council meeting on a resolution to stop the fighting in Lebanon. Coming up, I will speak with the secretary of state, Condoleezza Rice. We will speak about the diplomacy under way right now to stop this war. All that is coming up in the next hour.

Stay with us. We're live from Jerusalem, and you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We're watching the developments at the United Nations Security Council, where there's a new draft resolution not completely acceptable to Israel, though the Israeli government may, when all is said and done, go ahead and accept it.

We are waiting for official world from the Israeli government -- a top Foreign Ministry official expected here in THE SITUATION ROOM shortly, with word on whether or not Israel will go along with this U.S.-French draft resolution, even though there are aspects to it clearly unacceptable, at least right now, to the prime minister of Israel, one of the reasons why, only a few hours ago, he authorized the IDF, the Israeli Defense Forces, to go ahead and prepare for a new phase of this war.

We are watching all of this very carefully. We will speak shortly with the secretary of state, Condoleezza Rice, as well.

In the meantime, let's check in with Zain Verjee. She's watching some other important stories making news -- Zain.

VERJEE: Wolf, the skyscrapers swayed in Mexico City today. A strong earthquake measuring 6.0 struck about 130 miles southwest of the capital. It sent people running into the streets.

But officials say that there are no reports of major damage or injuries. In 1985, a powerful earthquake devastated Mexico City, killing at least 12,000 people.

A suicide car bombing has killed a NATO soldier in southern Afghanistan. Officials say an explosive-packed rammed into a NATO convoy in Kandahar today. Meanwhile, the U.S. military says U.S.-led and Afghan forces killed three suspected al Qaeda fighters in a raid in Khost Province in southeastern Afghanistan. Three other militants were captured.

The U.S. military also says, three coalition soldiers were killed battling Taliban forces in northeastern Afghanistan.

Police can randomly search bags on New York City subways. That's what a federal appeals court ruled yesterday. Police began the program last year, after the July bus and train bombings in London. The New York Civil Liberties Union sued, saying the searches are an invasion of privacy. The court disagreed.

Broadcasting legend Mike Douglas has died. He died of a heart attack today at a Florida hospital. Douglas' popular talk TV show ran for more than two decades, from 1961 to 1982. Guests included a very young Tiger Woods showing off his golfing skills, John Lennon, and seven U.S. presidents. Today was Mike Douglas' 81st birthday -- Wolf.

BLITZER: Thank you, Zain.

Zain, we will have you back shortly with some more news.

In the meantime, we are following all the breaking news here in the Middle East. We will have more live reports from the front lines, from northern Israel, from Lebanon, dramatic military developments unfolding right now. And we are also keeping one eye on diplomacy.

The United Nations Security Council, it's reviewing a revised resolution on the Middle East conflict. We are standing by to speak with the secretary of state, Condoleezza Rice. She's at the United Nations right now.

I am reporting today from Jerusalem, and you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Coming up, we will be speaking live with the secretary of state, Condoleezza Rice. She's spending the day today at the United Nations, meeting with members of the United Nations Security Council, where there's a new draft resolution that's trying to stop this war here in the Middle East. We will speak with the secretary of state momentarily. That's coming up.

There's other important news we are following in the war on terror, as well, including that alleged plot involving airplanes coming to the United States. Today, the Bank of England announced it was freezing the finances of 19 of the individuals arrested in connection with that alleged terror plot.

But the bank went a step further, posting detailed information on the suspects online.

Our Internet reporter, Jacki Schechner, has more -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, that's right.

The Bank of England has posted the information online. You can see, it has posted the names, the dates of birth, and the locations, the addresses of 19 of the 24 suspected terrorists.

Now, we must mention that wire services are reporting that one suspect has been released. We don't know the name of that suspect, as of yet. And we don't know if it's one of the names on this list.

What we do know is, the ages on this list range from 17 to 35. And most of the addresses are the suburbs of London, or Birmingham, in the U.K.

Why put this information on the Internet? Well, a spokesman for the -- Her Majesty's Treasury, which is the department of the government, or the arm of the government, that makes these decisions, said, it's to make the information more available, so that banks, stockbrokers, anyone that handles -- handles assets and liabilities can have access to this information, confirm it, and possibly freeze off funds.

The idea behind the sanctions is to stop the financing of terror or terrorist acts. Now, the U.K. has done this before. And this is consistent with U.K. and international laws and policies -- Wolf.

BLITZER: Thank you very much, Jacki, for that.

And still to come: The war in Iraq or the war on terror, which conflict will have voters -- in their minds when they go to the polls this fall? The answer could decide the battle for Congress.

We're live from Jerusalem, and you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

We are standing by to speak live with the secretary of state, Condoleezza Rice. She's at the United Nations, working to get support for this new U.N. Security Council draft resolution. The British government, French government support it. We are watching this very closely.

We are also standing by to speak with a top Israeli government official to get official reaction from the Israeli government. Will Israel support it? Or will Israel go forward with what is being called phase two of its military campaign in Lebanon?

We are watching all of this -- much more coming up at the top of the hour.

For many Americans, the war on terror is in their face right now, particularly if they are flying. But will they be thinking about the foiled airline terror plot come this fall, or might the war in Iraq be weighing on their minds a lot more? It's a conflict that could sway the battle for the United States Congress.

Let's bring in our senior political analyst, Bill Schneider -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, two big events this week, two headlines, two wars involving the United States.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): When Ned Lamont beat Joe Lieberman in Connecticut's Democratic primary on Tuesday, it sent a powerful message about the war in Iraq.

NED LAMONT (D), CONNECTICUT SENATORIAL CANDIDATE: We have 132,000 of our bravest troops stuck in the middle of a bloody civil war in Iraq. And I would say it's high time we bring them home to the heroes' welcome.

(CHEERING AND APPLAUSE)

CROWD: Bring them home! Bring them home! Bring them home!

SCHNEIDER: When the terror plot and subsequent arrests were revealed in London on Thursday, it sent a powerful message about the war on terrorism.

(BEGIN VIDEO CLIP, "LARRY KING LIVE")

RUDOLPH GIULIANI (R), FORMER MAYOR OF NEW YORK: ... why it's so important that we use this as a reminder that we're at war. This is not a law enforcement activity. This isn't -- we're at war.

(END VIDEO CLIP)

SCHNEIDER: The Democrats argument? "The Iraq war has diverted our focus and more than $300 billion in resources from the war on terrorism and created a rallying cry for international terrorists," Senate Democratic Leader Harry Reid said.

The Republicans?

UNIDENTIFIED MALE: If we leave Iraq, and the terrorists believe they drove us out, and people in the Mideast come to the conclusion America can't stomach this fight, if that's what happens in Iraq, we have really empowered the terrorists.

SCHNEIDER: Lieberman, who is now running as an independent, was also eager to link the news from London to Iraq.

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: And if we just pick up, as Ned Lamont wants us to do, and get out by a date certain, it will be taken as a tremendous victory by the same people who wanted to blow up these planes in this plot hatched in -- in England.

SCHNEIDER: Lamont was dismissive, telling "The New York Times" that Lieberman and the White House -- quote -- "believe our invasion of Iraq has a lot to do with 9/11. That's a false premise."

(END VIDEOTAPE)

SCHNEIDER: The news from London intensifies the debate over Iraq. For Democrats, the news from London highlights the costs of staying in Iraq. For Republicans, the news from London highlights the costs of leaving Iraq -- Wolf.

BLITZER: Bill Schneider, reporting for us, thanks very much.

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