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When Will The Iraqi Army Be Ready To Protect Its Own People?; President Bush Launching New Campaign to Boost Public Support For War; Investigators Trying to Figure Out Why a Comair Plane Crashed; Annan Is In Israel; Jesse Jackson Interview; Nick Burns Interview; Iran Ignores Demands to Stop Enriching Uranium; Chavez Visits Syria
Aired August 30, 2006 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN KING, CNN ANCHOR: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, it's 1:00 a.m. in Baghdad. New bombings leave dozens dead. When will the Iraqi army be ready to protect its own people? And can the Bush administration withdraw pressure to withdraw American troops?
Two Middle East peace missions cross paths.
It's midnight in Israel, where the U.N. secretary-general gets caught up in the test of wills, while the Reverend Jesse Jackson tries to arrange a prisoner release.
Can he do it? Again? I'll ask him.
And it's 12:30 a.m. in Tehran. Iran is just hours away from a U.N. deadline to halt its nuclear program. As the United States pushes for punishment, why is Iran so defiant?
Wolf Blitzer is off today.
I'm John King. You're in THE SITUATION ROOM.
In Iraq today, an unrelenting slaughter in the streets. Bombers today killed at least 47 people and wounded more than a hundred others. Half the casualties came in an attack on Baghdad's largest market.
The top American commander in Iraq made clear today that U.S. troops can't leave until Iraqis are ready to replace them. But as pressure mounts for a pullout, President Bush is launching a new campaign to boost public support for the war.
Our White House correspondent, Ed Henry, is standing by. But we begin with CNN senior Pentagon correspondent, Jamie McIntyre -- Jamie.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, John, you know how it is when the Fed chairman testifies on Capitol Hill? People try to read between the lines and figure out where interest rates are going? It's that way now with General George Casey, the top commander in Iraq. People parsing his words, looking for clues for when U.S. troops are coming home.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): The top U.S. commander in Iraq says Iraqi security forces are basically trained and equipped in assuming a lead role about 75 percent of time. But he says they are not yet ready to be left on their own.
GEN. GEORGE CASEY, COMMANDER, MULTINATIONAL FORCE, IRAQ: I can see over the next 12 to 18 months, I can see the Iraqi security forces progressing to a point where they can take on the security responsibilities for the country with very little coalition support.
MCINTYRE: But even as Iraqi forces stand up, General George Casey did not say U.S. troops could stand down. Even though that is the stated exit strategy. Casey may be a little gun shy after this overly optimistic prediction from last year...
CASEY: I do believe we'll still be able to take some fairly substantial reductions after these elections in the spring and summer of next year.
MCINTYRE: That didn't happen because the violence got worse instead of better. Pressed for a fresh prediction of U.S. troops cuts, Casey was understandably cagey.
CASEY: I'm not sure yet. And we'll adjust that as we go. But a lot of that -- and, in fact, the future coalition presence 12 to 18 months from now is going to be decided by the Iraqi government.
MCINTYRE: Casey notes in a few days Iraqi generals will take over direct control of some Iraqi troops that up until now have all been under his command. The first step to putting all 10 Iraqi divisions under Iraqi command. But he concedes there have been some troubling events recently with what he called a small percentage of Iraqi troops.
This week, some members of the Iraqi 8th Division were killed when they ran out of ammunition in a fierce battle with Shiite militiamen. And 100 members of Iraq's 10th Division refused to go to Baghdad when ordered. And Iraqi troops failed to protect a base near Basra from looters after British troops turned it over to them.
(END VIDEOTAPE)
MCINTYRE: If it turns out in a year, a year and a half, Iraqi troops are in control of much of the country, it's certainly possible that many U.S. troops will be coming home. But having been burned now by even a cautiously optimistic statement, General Casey is going to be very careful before he issues any public pronouncements -- John.
KING: Jamie McIntyre at the Pentagon.
Thank you very much, Jamie.
And the Bush administration is launching a new effort to defend the war in Iraq and to cast it as part of a greater war of survival against a worldwide threat.
The president is on the road today in Tennessee, and our White House correspondent, Ed Henry, is there in Nashville -- Ed.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: John, the president is here in Nashville for a Republican fund-raiser. Tomorrow he heads to Salt Lake City to kick off what you mentioned, that new series of speeches on the importance, the stakes on the global war on terror. If that sounds familiar, it's because it is.
The president has gone down this road before. This seems to be a tacit acknowledge by the White House that it just hasn't sold.
(BEGIN VIDEOTAPE)
HENRY (voice-over): With violence in Iraq getting worse, President Bush can hardly tout progress on the ground anymore. So he's rolling out a new and improved P.R. strategy, at least his third crack at a series of speeches on the stakes in the war on terror.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And they're speeches to make it clear that if we were retreat before the job is done, this nation will become even more in jeopardy. These are important times. And I seriously hope people wouldn't politicize these issues that I'm going to talk about.
HENRY: This time focusing the sales pitch on a broader ideological struggle between the forces of freedom and tyranny all around the globe that administration officials liken to World War II.
DONALD RUMSFELD, SECRETARY OF DEFENSE: Once again, we face similar challenges in efforts to confront the rising threat of a new type of fascism. Today, another enemy, a different kind of enemy, has made clear its intentions, with attacks in places like New York and Washington, D.C., Bali, London, Madrid, Moscow and so many other places.
HENRY: The new message got a test run Tuesday when Defense Secretary Donald Rumsfeld spoke to the American Legion and took the gloves off, suggesting current White House critic support the type of appeasement that sparked the rise of nazism.
RUMSFELD: A sentiment took root that contended that, if only the growing threats that had begun to merge in Europe and Asia could be accommodated, then the carnage and the destruction of their recent memory of World War I could be avoided. It was a time when a certain amount of cynicism and moral confusion set in among Western democracies.
HENRY: This, as the White House trying to stem the political pressure to withdraw troops from Iraq. An election year call now coming not just from Democrats, but from Republicans like Chris Shays in Connecticut.
White House aides say when the president addresses the American Legion on Thursday, he will acknowledge these are unsettling times. But just like Vice President Cheney did this week, Mr. Bush will also try to put Iraq in a larger context as the fifth anniversary of 9/11 approaches.
RICHARD CHENEY, VICE PRESIDENT OF THE UNITED STATES: We were not in Iraq on September 11, 2001, and the terrorists hit us anyway. As President Bush has said, the hatred of the radicals existed before Iraq was an issue, and it will exist after Iraq is no longer an excuse.
(END VIDEOTAPE)
HENRY: Now, the president insisted last week that he will not question the patriotism of war critics even though Secretary Rumsfeld seemed to come pretty close to doing just that yesterday.
There seems to be a two-pronged strategy from this White House. On one hand, the president goes out and says he's not playing politics. Meanwhile, others, like Secretary Rumsfeld, Vice President Cheney, really take the gloves off and play some political hardball in this midterm election year -- John.
KING: A little more than two months to the election, Ed. Just about anything the president says or does is part of the political debate, anyway.
Ed Henry for us in Nashville.
Ed, thank you very much.
And happening now, the storm called Ernesto dumping heavy rain over large parts of Florida. It's been downgraded to a tropical depression, but forecasters warn Ernesto could strengthen over water as it heads towards the Carolinas.
Meanwhile, a much more powerful storm is scraping Mexico's Pacific coast. Hurricane John is a Category 4 with sustained winds near 135 miles an hour. Right now it isn't forecast to make landfall on the Mexican mainland, but it could hit the resorts on the southern tip of the Baja peninsula.
We'll get the latest on both John and Ernesto from Max Mayfield at the National Hurricane Center. He'll join us a bit later in THE SITUATION ROOM this hour.
Flags and flowers, prayers and praise. Relatives of those 49 people killed in a plane crash in Kentucky are remembering the dead. Today they attended a private service at the site of Sunday's disaster. Investigators are trying to figure out why the plane crashed and whether or not understaffing at the airport played a role.
More on that from CNN's Brian Todd -- Brian. BRIAN TODD, CNN CORRESPONDENT: John, investigators say the lone controller at the tower in Lexington turned his attention elsewhere after clearing Comair Flight 5191 for takeoff. But at this point, no one is blaming the controller for heading down the wrong runway. And new questions are being raised about whether that controller and many others are getting adequate support.
(BEGIN VIDEOTAPE)
TODD (voice-over): Could another set of eyes in the control tower at Lexington have made a difference? We spoke to a former controller and a former FAA chief of staff who say a shortage of controllers in that tower and beyond is a big problem.
MICHAEL GOLDFARB, FMR. FAA CHIEF OF STAFF: We've been fighting a year's long battle to have enough controllers, but the warning signs now are right in front of us.
TODD: Another expert who did a study for the controllers union says of the 43 major airports he's surveyed there are shortages of controllers at most of them. Former FAA chief of staff Michael Goldfarb says it's a problem at mid-sized airports, too.
GOLDFARB: We have a situation where many of the medium-sized airports around the country that have witnessed remarkable growth with the advent of the regional jets, as you know, carrying people from cities that never before were direct flights have seen this growth, and air traffic control staffing has not kept pace.
TODD: The FAA flatly disputes that, saying staffing levels in control towers are very good right now and the agency is planning to hire 12,000 more controllers over the next decade.
As for Lexington, an FAA official tells CNN the controller's management there thought it had the flexibility to schedule one controller during the period when the Comair jet took off because traffic is so light then, but the FAA says its guidelines call for two controllers to be in the tower during that period. And since the accident, a second controller has been added. The FAA says one control is supposed to watch radar while one keeps an eye on the tarmac.
(END VIDEOTAPE)
TODD: One important factor in the national debate over control tower staffing, a long-running contract dispute between the FAA and the controllers union. They are still at an impasse over -- after several years. And this Sunday the FAA, by law, can and will invoke a new contract that the controllers don't like. Among the provisions, a cutback in pay for new controllers -- John.
KING: Brian Todd tracking the investigation for us.
Brian, thank you very much.
And time now for what we call "The Cafferty File". Jack Cafferty is standing by in New York.
Hi, Jack.
JACK CAFFERTY, CNN ANCHOR: John, every month the government puts out a lot of numbers. Most of them puts you right to sleep. But once in a while there's a wakeup call. For example, this...
The Census Bureau released figures showing more than 12 percent of all Americans -- that's about one out of eight of us -- lived in poverty last year. For African-Americans it's even worse. Nearly one in four.
And if you live in poverty in this, the richest country in all of the world, you probably can't afford health insurance. More than 46 million Americans didn't have health insurance last year. That's 16 percent of us. And that number has gone up every year for the last five years.
One in eight of all of us in poverty. One in four African- Americans in poverty. Forty-six million of us with no health insurance.
Here's the question: What has to be done to improve conditions for the nation's poor?
E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile.
Those are numbers that are absolutely disgraceful in this country in 2001 (sic) -- John -- 2006, I'm sorry.
KING: Could not agree more, Jack -- 2006. Jack, we'll check back a bit later. Thank you.
And up ahead, a critical deadline for Iran just hours away. Will the country stop enriching uranium or possibly face sanctions? We'll get the latest in a live report from Tehran.
Also, the Reverend Jesse Jackson working to broker the release of kidnapped Israeli soldiers. He joins us from Tel Aviv for a one-on- one interview.
Plus, we'll show you why Venezuela's president is a celebrity in much of the Arab world.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
KING: Two high-profile peace missions are under way in the Middle East. In just a minute I'll speak with the Reverend Jesse Jackson about his trip which has taken him to Syria, Lebanon and now on to Israel.
But first, United Nations Secretary-General Kofi Annan is also in Israel, where he's finding himself in a test of wills.
CNN's Chris Lawrence is in Jerusalem.
CHRIS LAWRENCE, CNN CORRESPONDENT: John, Kofi Annan and Ehud Olmert agreed on some points. But on others, Israel and the U.N. are not on the same page.
(BEGIN VIDEOTAPE)
LAWRENCE (voice-over): Despite a friendly greeting between the heads of Israel and the U.N., the tense relationship is being tested.
KOFI ANNAN, U.N. SECRETARY-GENERAL: I've been urging for the immediate lifting of the blockade on Lebanon.
LAWRENCE: Kofi Annan is pushing Israel to reopen Lebanon's ports of entry. Prime Minister Ehud Olmert won't do it until the U.N. enforces an arms embargo against Hezbollah.
EHUD OLMERT, ISRAELI PRIME MINISTER: It has to be effective, it has to be strong, and it has to be in all entry points.
ANNAN: But in the meantime, I do believe that the blockades should be lifted.
LAWRENCE: Annan accused Israel of violating the cease-fire agreement and jeopardizing U.N. Resolution 1701. Olmert shot back, questioning when a full international force will be deployed to the border.
OLMERT: The sooner it will take place, Israel will pull out entirely from Lebanon and there will be no basis for any arguments or any accusations.
ANNAN: But we need to be flexible. We shouldn't insist that the only way to do it is by deploying international forces.
LAWRENCE: Annan says 2,500 troops are already on the border. He hopes to double that number within a week, but says Israel should continue its pullout now. The two did agree, in a way, on the two Israeli soldiers captured by Hezbollah. Annan met with their families and promised to work for their release. Olmert says it should be immediate and unconditional.
(END VIDEOTAPE)
LAWRENCE: Lebanon's prime minister believes the blockade could be lifted within the next few days. But there are some complications.
Israel also wants an international force deployed on Lebanon's northern border with Syria to stop the flow of weapons from there. Syria considers the presence of international troops on its border a hostile act -- John.
KING: Chris Lawrence for us in Jerusalem.
Now, the Reverend Jesse Jackson has helped to free captives in hotspots all over the world. Can he do it again?
(BEGIN VIDEOTAPE)
KING: Reverend Jesse Jackson, thank you for joining us today in THE SITUATION ROOM.
You were in Tel Aviv and in the Middle East region on a mission that includes trying to secure the release of these three Israeli soldiers, two held by Hezbollah, one held by Palestinian militants, we presume, in Gaza.
You were unable to see these soldiers, and that has left the wife of one of them unhappy. And I want, before I ask you the first question, to let you hear this. This is Karnit Goldwasser, the wife of one of the kidnapped soldiers in Lebanon.
She said, "We're still being fed rumors. I would be glad to hear from Reverend Jackson that he saw them, but he didn't see them. Someone told him. It's good, but not enough. We are asking for help."
Sir, what assurances do you have that these three gentlemen, these three Israeli soldiers, are still alive?
REV. JESSE JACKSON, RAINBOW PUSH COALITION: Well, you know, I talked with people that our government and Israel's government can and do not talk with. First of all, we met with the heads of state in Syria, Assad and Lahoud in Lebanon. I met with the head of Hamas and leaders in Hezbollah.
That's the top levels. And they give me the clear impression that the soldiers are alive. But they also want to use them to negotiate the release of other soldiers are who are held captive in -- in the West Bank, or in Lebanon, as the case may be.
I am convinced, John, that they really are alive.
KING: Well, let me ask you this. You say they want to use them to negotiate the release of others. In the case of Hezbollah, they signed on to a cease-fire agreement a little more than two weeks ago, on August 14th, that called for the unconditional release of these two soldiers. And then to have communications with Israel about possible prisoner releases. But the deal was unconditional release.
Why should anyone want any negotiation with them when they are not keeping their end of agreement they accepted?
JACKSON: Well, both sides are saying unconditional. I think that the first issue here is extend the cease-fire, and don't start the bombing and the rocketing again.
The second issue is get the soldiers in place to be that buffer zone. And the third area is to get humanitarian relief into Haifa and into southern Lebanon. Those are windows that we must expand. And then the issue of the soldiers. Assad's interest, for example, is the three soldiers we asked him about. But also about -- about 20 Syrians in the Golan Heights, he says, and about the Lebanese captured during the -- during the war.
But I met with Mashaal of Hamas. He's concerned about the one soldier that they have, vis-a-vis the Palestinians. And Hezbollah is concerned about the two soldiers, vis-a-vis the Lebanese.
I'm convinced that if we had the capacity to talk, we could bring this matter, John, to a head. I think we're right at the precipice of being able to make a breakthrough if we, in fact, are able to talk.
KING: As you well know, others would say, if you talk to everyone you might make some progress, but the deal called for the unconditional release, and let's move on to other issues beyond that.
But let me -- let me get to this point. You said you met with President Assad of Syria. He is someone the Bush administration views as a bad actor, someone who was allowing weapons shipments to Hezbollah across his border, even during the conflict. Someone who has allowed back and forth across his border with Iraq, that the Bush administration would say has helped the Iraq insurgency.
What is your assessment of President Assad? And do you share the Bush administration's take? Is this a bad actor or is this someone you view as part of the solution?
JACKSON: And that's probably why we talked with him, just for those reasons, because we cannot leave him out of the equation. Syria has access as it relates to Iraq and to Iran and Hezbollah and Hamas and Lebanon. One who covers that much territory must be talked with.
We must persuade him, dissuaded him, neutralize him, change him. But the idea of neutralizing him to not talking is not a sound way to force the desired outcome.
I remember many years ago when Kruschev was beating his -- his shoe on the table, saying, "We'll bury the U.S." We didn't stop talking with Russia, because we know no talk gets no results.
And so I would say that we have too few friends and too many interests here. And not talking with Iran and Syria and Hezbollah and Hamas leaves us very vulnerable.
KING: Leaves us very vulnerable. You're critical of the Bush administration in that regard, but I want to come back to the point you mentioned just a moment ago. You think they're on the precipice of a possible breakthrough.
JACKSON: It's not just that I'm being critical, John, but hear what I'm saying. My point is, if Hamas and Hezbollah has the three soldiers, if that's our interest, and we cannot talk with Syria, who has influence on Hezbollah, if we cannot talk with them, we cannot create the desired outcome. I say talk unconditionally and agree conditionally to protect our interests and that of our allies. KING: Well, the Bush administration refuses to do that right now. Do you see any hope for the release of these three Israeli soldiers who are not hostages if that does not happen? If the Bush administration holds firm, what else might bring about their release?
JACKSON: Well, I think that our ecumenical religious leaders could be a part of that break. Each time I brought Americans home from Iraq, Syria, Cuba, Yugoslavia, it was always when we didn't talk with them and didn't talk with those religious leaders within those countries.
I'm convinced that Hezbollah and Hamas at this point, even working through their governments of the Palestinian government, or through Lebanon, are willing to talk about some kind of deal. Now, they talk in terms of swap. And Israel does not want to talk -- use the word "swap."
Whether you use "swap" or "negotiate," better we have some form of exchange for them rather than detain them. We know that they exist and they're alive. We, in fact, know who has them captive.
We must, in fact, use either. If we can't talk directly, then, in fact, use some kind of third-party channel. But otherwise the soldiers are just right on the altar of our no-talk politics.
KING: Reverend Jesse Jackson, we need to leave it there. We will continue to touch base with you, though, as you continue your diplomatic efforts.
Thank you very much for joining us today.
JACKSON: Thank you.
(END VIDEOTAPE)
KING: And coming up, new developments in the case against polygamist leader Warren Jeffs. CNN has just confirmed new details on what will happen next to the former fugitive.
And the storm called Ernesto pounding Florida and taking aim at the Carolinas. Will it strengthen into a hurricane again? We'll get the latest forecast from the National Hurricane Center director, Max Mayfield.
Stay right there. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
KING: Wolf Blitzer is off today.
I'm John King. You're in THE SITUATION ROOM.
More now on another major story we're following. Two storms both causing weary, worry and whoa: Tropical Storm Ernesto and Hurricane John.
Joining me now is Max Mayfield. He, of course, is the director of the National Hurricane Center in Miami, Florida.
Max, thanks for joining us.
Let's start with Ernesto and the latest, down to a tropical depression. Over your worries?
MAX MAYFIELD, DIRECTOR, NATIONAL HURRICANE CENTER: Well, the good news is that it never did strengthen last night when it came over south Florida, moved in as a weak tropical storm and is moving up the peninsula here. You can see it, the flare-up here, but the winds have definitely come down even more to a tropical depression.
We think that when it comes out tonight somewhere near the cape here, it will turn a little more to the north, northeast. And that takes it up into the Carolinas and the Mid-Atlantic region.
KING: So no high winds, but a lot of rain. Are you worrying about flooding as it comes back up? And how much speed could it pick back up if it goes out over water?
MAYFIELD: Well, we think that it's actually -- considering it's over land, it's still looking somewhat impressive here. So once it gets over the land, likely it will come back to a tropical storm. And we have a tropical storm warning up to Cape Lookout, North Carolina, southward down to Sebastian, in the Florida coast.
So, those could get tropical storm conditions, but the big concern I think will become rainfall. And as it gets up there, the coastal South Carolina, up into the Mid-Atlantic region, we're calling from four to eight inches of rain with some massive (ph) amounts up to 12 inches, and up in the mountainous areas that could be a real concern for a loss of life.
KING: Well, let's move out West. Hurricane John obviously a much greater worry.
Are areas with significant population at risk here?
MAYFIELD: Well, John is a Category 4 hurricane. And that is a concern there for Mexico. It looks like it's going to skirt along that southwest coast.
We've talked with the meteorological service in Mexico, and they do have a hurricane warning out for much of that area. It's headed towards the southern tip of Baja. So, yes, this is -- these are some, you know, real resort areas, there are a lot of small boats out there.
We really want to make sure that the message gets out that they've got a very powerful hurricane. By the time it gets to Baja, California, and Cabo San Lucas, that nice resort area, it may be weakening some, but likely still a major hurricane.
KING: And from there does it head back out over water, where it's a threat to nobody?
MAYFIELD: The most likely scenario is for it to head out over the open Pacific there, but there's still some chance. One of our models has it turning a little more northward into the gulf of California. So we're still watching that very closely and coordinating with Mexico every six hours. We're making that five-day forecast every six hours.
KING: I want to bring you back to Ernesto. I was the listening this morning, you know, and many thought Ernesto might hit shore as a hurricane, at least a strong tropical storm. All of this happening around the anniversary of Katrina, and I heard you talking about how you have to answer to your critics, including maybe your wife at home. About getting people all built up, perhaps a little bit worried, and then it turns out to just be a soggy day.
MAX MAYFIELD, DIR., NATIONAL HURRICANE CENTER: That's right. And you know, no one wants to get it right more than the staff here at the National Hurricane Center, and we've been -- well, the track forecast is very good here the last couple of days. For the last day and a half we've been forecasting it to strengthen into a strong tropical storm.
We did not put up a hurricane warning. We had a hurricane watch which meant that there was some potential for it to become a hurricane. We were forecasting it to be a strong storm. We had the tropical storm warnings out and it came in as a weak storm. Not nearly as strong as, you know, we were forecasting, and I think at least the homeowners down here in South Florida and the Keys are very thankful for that.
But the truth is, the state of the scientists thought that we had real limitations on intensive forecasting and we try to be honest with people about that. And there are people that are working very hard on that. It's a difficult problem for us to solve.
KING: It is cliche but also true, better safe than sorry. Max Mayfield, thanks once again for all of your help.
MAYFIELD: Thank you very much.
KING: Take care Max. And our Zain Verjee joins us with a look at other stories making news right now. Hi Zain.
ZAIN VERJEE, CNN ANCHOR: Hi John. CNN has confirmed that polygamist leader Warren Jeffs will be extradited to Utah first. He's facing charges there and in Arizona including rape and forcing underage girls into marriages with older men in his polygamist sect. The former fugitive is scheduled to appear in court tomorrow in Las Vegas. That's where he was arrested on Monday during the routine traffic stop.
A federal judge is throwing out a giant damage award in a Vioxx lawsuit. A jury awarded $50 million to the man who blames the recalled pain killer for his heart attack. The judge calls that award excessive by any standards. He's ordering the jury to come up with a new figure.
Northwest Airlines may be a step closer to a strike by flight attendants. Representatives say there's little hope for negotiations. Now a federal judge may have to decide if the flight attendants can go on strike. Northwest is warning that could put the airline out of business for good.
And in southern California, more than 500 firefighters are facing steep terrain in triple digit temperatures as they battle a wild fire in the San Bernardino National Forest. The so-called emerald fire has burned about 2,000 acres, 60 miles east of Los Angeles. It's only about 10 percent contained. Small towns in the area have been evacuated and part of a main mountain highway is closed -- John.
KING: Zain Verjee. Zain, thank you very much. And coming up, Iran is reportedly still enriching uranium despite the threat of United Nations sanctions for it to stop its nuclear activity. So what might that mean in terms of possible punishment? I'll ask the undersecretary of state Nicholas Burns. And with and against, what do you do when one of your sworn enemies becomes friends with others who have little love for you as well? Well that's what Venezuelan President Hugo Chavez is doing. And we'll tell you who he's getting close to now.
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KING: Just hours from now, Iran faces the United Nations deadline to halt its enrichment of uranium and other nuclear activity. But Iran has offered only defiance of the deadline. And faced with possible punishment has seemingly dared the world community to bring it on. Let's go live to CNN's Aneesh Raman, he's in Teheran -- Aneesh.
ANEESH RAMAN, CNN CORRESPONDENT: John, in Tehran tonight there is no waiting to find out what Iran will do. We know they will not meet the U.N. deadline. The wait now begins for what the world will do back.
(BEGIN VIDEOTAPE)
RAMAN (voice-over): The deadline is looming but Iran shows no sign it plans to bow to the United Nations demands and stop enriching uranium. In fact the U.N. watch dog agency says there's evidence the country was continuing enrichment as recently as Tuesday. The U.N. has given Iran until tomorrow to halt the program or possibly face sanctions.
But on the eve of the deadline, President Mahmoud Ahmadinejad was still refusing to back down. He was quoted by state run media as saying, "Sanctions cannot dissuade the Iranian nation from achieving our lofty goals of progress. In the face of Iran's defiance, the U.S. state department says it will start talks on sanctions with European allies and Russia as early as next week.
But why defy the west? Iranian officials believe it gives their country more influence in the Muslim world. They're already riding high from what they portray as Hezbollah's victory over Israel. Iran being a primary supporter of Hezbollah. But Iranians themselves are divided by the prospect of sanctions. Most people feel immense pride in the country's nuclear program. Especially among those in blue collar southern Tehran. Here it's all about making your daily wage and showing no weakness to the west. We are not afraid of economic sanctions says Majid because this is not the first time they want to impose them. And in the eight years of war we fought the entire world.
But head to northern Tehran, home to the more affluent, more moderate, and confidence gives way to concern. Ordinary people, says 29-year-old Teshman, are very worried in the university and homes and at workplaces people are very concerned. I can see that. They are very afraid.
But there is something even worse than sanctions that has people worried. It's the prospect of a military conflict over Iran's nuclear ambitions. Last week, the government launched a massive military exercise, war games, to demonstrate Iran's ability to defend itself, in part against potential attacks on its nuclear sites. Something that could drag this country into a broader military conflict. That remains the worst case scenario.
(END VIDEOTAPE)
RAMAN: And John, the sense I get on the ground from Iranian officials, we've heard it all through the week, is that at the root of all of this is Iran's desperate desire to be seen as sole super power in the Middle East and desperate desire to be engaged with by the United States -- John.
KING: And Aneesh when you talk to people on the street are they serious in their concern? Do they think a military confrontation could be in the short-term future?
RAMAN: Well they think the world will back out of the military confrontation before Iran will even have to. They think the world is aware if Iran is forcibly dragged into this, it will respond and it will engulf the entire region. They don't want war. They had a brutal eight year vicious battle with Iraq. Many thousands of people were killed. But it looms ahead. They know that after years of stalling, Iran is now pursuing this program and that is coming to a head. And what happens next is anyone's guess on the street -- John.
KING: Aneesh Raman doing remarkable work for us in Tehran. Aneesh thank you very much. Undersecretary of state Nicholas Burns joins us live from the state department to discuss this issue just ahead. Plus, is there strength in numbers? The president of Venezuela dislikes the United States. So why not multiply the malevolence by lining up with others who also scorn America? Seems like that's what Hugo Chavez is doing. In our 7:00 p.m. hour, if this is your brain on drugs, our Jeanne Moos will tell you why some say anti-drug ads like these really don't work.
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KING: You just heard from Iran about Tehran's defiance. Well the Bush administration says the major powers could meet soon to discussion an Iran sanctions resolution. Joining me now is the undersecretary of state Nicholas Burns. Nick Burns thanks for joining us from the state department. As this plays out and the deadline approaches, Iran seems to have no concerns about world opinion. I want to read you a quote from President Mahmoud Ahmadinejad.
He says this, "Sanctions cannot dissuade the Iranian nation from conquering the peaks of pride. So it's better for Europe to be independent in decision making and to settle problems through negotiations." Not only is he thumbing his nose at the world, he seems to be trying to split Europe away from the United States. What happens next? Do you have the votes in the Security Council to get a tough resolution?
NICHOLAS BURNS, UNDER SECRETARY OF STATE: Well John I think it's abundantly clear now we're a day before the deadline that Iran has no intention of meeting that deadline and meeting the condition that the current five countries put down three months ago. And that is, if Iran would suspend its nuclear efforts, its enrichment efforts at Natans (ph), we would all negotiate.
The Europeans have negotiated for the last several years to no avail. They've done a very good job. But the Iranians haven't met them half way. So President Ahmadinejad should not be surprised that the United States will obviously move very quickly to bring this to the Security Council and to press forward with the sanctions regime. That is what we all said we'd do.
KING: Let me interrupt. And if China and Russia or one of them says no, then you cannot get a sanctions resolution through the Security Council in short order as the world watches this. What are your options outside of the Security Council? Is there another coalition to be formed or is the United States going to be unilaterally in a showdown with Iran?
BURNS: I don't think we should presume a negative here. If you look at the last Security Council resolution passed 30 days ago, all the members of the Security Council said we will support measures under article 41, that is sanctions should Iran not comply with this resolution. They haven't complied. And so I think it's clear we're going to see some movement towards those sanctions over the next few weeks in the Security Council.
We believe the sanctions regime will be agreed to in September by the Security Council. And we're sure going to work towards that with a great deal of energy and determination because this cannot go unanswered. The Iranians are obviously proceeding with their nuclear research. They are doing things that the international atomic energy does not want them to do, the Security Council doesn't want them to do. There has to be an international answer and we believe there will be one, John.
KING: You say there will be one. Maybe we'll come back to that in a minute because there's a great number of skepticism -- you can get the votes in the Council. They're not only are saying no to this specific demand from the Security Council, as they say no, you've seen all these military exercises in recent days. Essentially they're saying "we're here." And if you have sanctions against us, there are things we can do in the world as well. They obviously have the capability to turn the Persian Gulf into hostile waters, to disrupt the world economy and the oil trade. Is that where this is headed?
BURNS: You know, we're not going to be intimidated by anything the Iranians do. And they've got to understand one thing, they are fairly isolated on this issue. They now have the entire Security Council, all of the permanent members, including Russia and China saying that they've got to cease and desist. And you had countries like India and Egypt, also vote against them in the international atomic energy agency. So the Iranians have to sit back and they'll have to calculate the cost of isolation, the increased pressure that's going to come their way.
And this is not going to be a pleasant time for them. We are obviously trying to seek a diplomatic solution to this very serious challenge to the international order and to peace and stability in the Middle East. We'll continue on that diplomatic path but we'll take actions in the Security Council to make it clear to the Iranians that they don't have support internationally for what they're doing.
KING: Well how would you answer those who would say they have made the calculation, and that's why they're doing this. That they see a weak and unstable Iraq, they see a vacuum of power in the Middle East and they see after the Hezbollah confrontation with Israel, the fact that Hezbollah has great popularity in the Muslim world. And while Iran is not an Arab nation, it's a Persian nation, that perhaps they can assert themselves as the great power in the region.
BURNS: I think that would be a profound miscalculation on the part of the Iranian government. You know there is a great deal of concern in the Arab Middle East about an Iran with nuclear weapons. And that's what we're going to be facing unless the international community stops the Iranian nuclear research program. That's why we're going to the Security Council.
That's why you've seen this very, very large international coalition materialize over the last 12 months and it has held together and the Iranians have not been able to separate us either from the Europeans or from Russia and China. I think this coalition will stick together and the Iranians will have to put that into their calculations.
KING: We will watch that, will the coalition stick together, we'll watch that as this moves through the Security Council and we will revisit with the undersecretary of state Nick Burns. Nick thank you very much.
BURNS: Thank you, John.
KING: Thank you. Venezuelan President Hugo Chavez is taking new verbal swipes at the United States. The long time thorn in Washington's side is increasingly a hero in the Arab world. CNN's Zain Verjee is here with all the details. Zain?
VERJEE: John, the enemy of my enemy is my friend. Venezuela's president appears to be executing that strategy, becoming buddies with Cuba and Iran. He's a rock star now in Syria.
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VERJEE (voice-over): A bear hug, and a 21-gun salute. Syria rolls out the red carpet for Venezuelan President Hugo Chavez. A crowd of thousands cheer and chant, line the street for his arrival. The first stop, a meeting with Syrian President Bashar Al Asad.
Chavez takes aim at his favorite target, the United States. In a pact with Syria, he vows to confront American imperialism and imperial aggression. Chavez insists the U.S. is doomed as a super power saying, "This age will witness the end of American imperialism." The U.S. State Department shrugged off Chavez's trip to Syria.
SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: He's a head of state, he's free to travel and meet with whomever he wants to meet with.
VERJEE: Chavez lashed out at Israel, denouncing what he calls Nazi crimes during its war against Hezbollah in Lebanon. He's also recalled Venezuela's ambassador to Israel, scoring big points among Arabs. Using Israel and the United States as punching bags, Chavez has become the darling of Arabia, winning hearts and minds.
HISHAM MELHEM, ARAB ANALYST: Hugo Chavez is tapping into the deep reservoirs of resentment and anger that exists in the Arab world vis a vis the United States and Europe and Israel.
VERJEE: And so Chavez is fast becoming an unlikely poster boy for the Arab resistance. Thank you for supporting the resistance and the Arab people, this poster in Damascus says. And look at what the Arab people are saying on websites like Al Arabiya. "If I wasn't Egyptian I would want to be a Venezuelan or North Korean. From this day forward, I am Venezuelan. Chavez is a symbol and we are ready to sacrifice our souls for you."
MELHEM: There's a yearning in their Arab psyche for leadership, for a place under the son. The Arabs in general feel that they are being marginalized by the modern world. They've been humiliated repeatedly by the Israelis, they've been humiliated repeatedly by illegitimate leadership.
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VERJEE: Many Arabs have nicknamed Chavez "Buttel Al Arab", an Arab hero -- John.
KING: Zain Verjee, thank you very much. Ok then. Up ahead, what happens between you and your cell phone should stay between you and your cell phone. If you send a lot of text messages to loved ones, be careful, someone else might see them even after you think you've erased them. We'll tell you how. And Jack Cafferty has a question for you to consider. What needs to be done to help the nation's poor? Jack will have the answer, your answers, when he reads your email. Stay right here.
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KING: Let's check back in now with Jack Cafferty. Jack?
CAFFERTY: John, we live in the richest country in the world. New numbers out of the census bureau indicate 12.6 percent of Americans live in poverty. 15.9 percent of us have no health insurance. That's about 46 million of us. So the question is, what has to be done to improve conditions for this nation's poor?
R.D. in Montana, "The first thing we need to do is prosecute employers hiring cheap illegal immigrant labor, instead of Americans. Then stop all benefits to illegals who drain the system. We need to take care of our own not some foreign country's citizens."
Duncan in Texas, "Stop wasting $300 billion in Iraq, and start voting out the politicians who don't address the issues of poverty, health care affordability and protecting the jobs of middle class Americans."
John in Rhode Island, "Responsible family planning would help the poverty issue. How many of the impoverished families have more than three kids? Family planning is something we all should take very seriously because we're witnessing the sad consequences of no family planning. And it will only get worse unless we become smarter."
Gail in California, "The two most immediate corrections to the terrible level of poverty in this country could be to raise the minimum wage and secure the borders against illegal aliens. After that, you could proceed with very public trials and prison terms for the corporate officers of the companies that hire the illegals."
Rick in Texas writes, "The poor can get help from various government agencies. It's the middle class that goes bankrupt when one family member is in need of major medical help."
And Rose writes, "A reasonable minimum wage and access to basic healthcare - two things that exist in every other western democracy would be a start. But what are the chances issues like these will be raised in the coming fall elections? Instead we'll hear "terror alert, terror alert, terror alert." If you didn't see your e-mail here you can go to cnn.com/caffertyfile, where we post some more of them online -- John.
KING: Thoughtful question and some thoughtful answers. Jack, thank you very much. Up next, before you get rid of that old cell phone, you better be sure it's new owner doesn't get a hold of your old secrets. Including account numbers, passwords, maybe even details of your love life. Stay right here, you're in THE SITUATION ROOM.
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KING: This just in to CNN. Word from California on a development that will have both political and environmental implications. Governor Arnold Schwarzenegger, a republican, has a deal with assembly democrats on a plan that would make California the first state in the country to impose caps on greenhouse gas emissions. Under this plan which still needs legislative approval, the state would reduce its emissions of carbon dioxide and other greenhouse gases by an estimated 25 percent by the year 2020. A clear break from the Bush administration and nationally policy. Governor Schwarzenegger acting alone in California with the help of assembly democrats.
Now from photos to e-mail, we can use our cell phones to do much more these days than just make phone calls. But to do all that, that phone has a memory. If you sell it or donate it. Can you be sure the next owner won't be able to pull up your past secrets? Jacki Schechner is following that story. Jacki?
JACKI SCHECHNER, CNN INTERNET REPORTER: John on eBay right now, the online auction site, there are more than 40,000 cell phones for sale and many of those are used phones. Now there's a security company, a software security company called Trust Digital that ran a test, it bought 10 cell phones, nine of them were used.
And they say they were able to pull up close to 27,000 pages worth of personal and corporate data off of those used phones. Anything you text or email they say they can retrieve it. So if you want to donate or sell your old phone, what do you do? At the very least, you should erase data on that phone, you can reset your phone, go to wirelessrecycling.com, they have a dropdown menu, you put in your make and your model. It will give you specific instructions how to remove information.
Now in some cases that information is still retrievable with special software and special skills. If you are concerned about that, and we should note this company says in the 15 years they've been recycling phones, they have never seen a problem. But if you're concerned, you should go to the cellular service company, give them a call, they'll tell you how to wipe that information out most completely or call your manufacturer, they too can help -- John.
KING: Think I'll just break mine into a million pieces. Jacki Schechner, thank you very much. We'll be back in an hour, Kitty Pilgrim sitting in for Lou Dobbs tonight -- Kitty.
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