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Chilling New Video Purportedly Shows Terror Leaders Preparing For 9/11 Attacks; Democrats And Some Republicans Disagree With President Bush's Latest Anti-Terror Moves; Bush Urges Congress To Move Quickly On Legislation Dealing With Military Court Trials For High- Level Terror Suspects; Barbara Boxer Interview; Hot Button Issues Important in Upcoming Elections

Aired September 07, 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, Ali.
And to our viewers, you are in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States a and around the world to bring you today's top stories.

Happening now, al Qaeda's anniversary, a chilling new video purportedly showing Osama bin Laden and other terror leaders preparing for the 9/11 attacks on America. Why now? Could it signal a new attack?

Three speeches in three days, President Bush arguing he's tough on terror, saying he's taking unprecedented steps to prevent the next attack. Democrats though, voicing doubts about his latest move. So do some Republicans.

And it's 4:00 p.m. in Washington where immigration reform is now stalled. This hour, thousands turn out to try to turn up the heat on Congress, but the immigration issue is already heating up some key midterm campaigns.

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

It's a stunning, behind the scenes look at Osama bin Laden and al Qaeda hijackers apparently planning the 9/11 attacks. The video aired on the Arabic network Al-Jazeera. It surfaces for the first time just ahead of the five-year anniversary of 9/11.

Does its release, though, signal a bizarre commemoration by al Qaeda, or something perhaps even more ominous? Our terrorism analyst Peter Bergen is standing by live in Afghanistan. Let's bring in our justice correspondent, Kelli Arena.

She is joining us first with more on this videotape -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, you know, this isn't the first time that al Qaeda has released a tape around the anniversary of September 11th. There have been several. Now, this tape is reportedly more than five years old, which seems to be true because two of the men on it are dead, and one has been in custody since 2002. Now, on the tape we see Ramzi bin al-Shibh alongside Osama bin Laden. This is the first time, Wolf, that we have seen the two of these men together. Bin al-Shibh is one of the alleged planners and facilitators of the September 11th attacks, and it was announced just yesterday that he would be transferred from a secret CIA prison to Guantanamo Bay.

Now, also on this tape, we have two of the hijackers: Wail Alshehri, who was on American Airlines flight 11 that flew into the North Tower of the World Trade Center; and there's another hijacker, Hamza Alghamdi, who was on United flight 175. That flew into the South Tower.

Now, this tape, Wolf, follows the release of another al Qaeda tape just this weekend causing some to speculate that perhaps al Qaeda is planning an attack of some sort. I did have an opportunity to speak today to FBI director Robert Mueller and, Wolf, he says that there's simply no intelligence to suggest that any threat is imminent at this time.

BLITZER: Walk us through what the U.S. government -- whether the Justice Department, the CIA, the National Security Agency, what they do when a videotape like this is shown on Al-Jazeera.

ARENA: Well, Wolf, obviously, the first thing to do is to get a copy of the tape and then they go through everything that they can. I mean, they look for messages within the messages. They look for background information, anything that would give them any sense of location or timing or any clues that they can pick up, intelligence- wise, first, obviously to find out where, when it was made.

This one doesn't have any new information, unlike some recent tapes that we've seen. There were no new message. This is all old tapes. So how helpful that will be on that front is unclear at this time.

BLITZER: And it's unclear whether this videotape just surfaced on this fifth anniversary on 9/11 or if al Qaeda specifically wanted this videotape to surface and this was the way, perhaps, for Osama bin Laden to be making a statement, if you will, on this fifth anniversary.

ARENA: Well, usually, Wolf, they are very careful and tedious in how they have these tapes released. Many of them are released over the Internet. As you know, they actually stopped using Al-Jazeera as a venue for some time. That was seen as a possible intelligence vulnerability. They have chosen Al-Jazeera, again. This time around, going by past precedent, Wolf, I think this is very deliberate.

BLITZER: Kelli Arena, thanks very much.

And coming up, we're going to be speaking with our terrorism analyst, Peter Bergen. He is in Afghanistan right now. He's monitoring all of these developments, including this latest videotape. That's coming up. Meanwhile, President Bush today said al Qaeda is determined to strike again, but added that America has learned the lessons of 9/11 and he claimed a number of successes in the war on terror, including the capture of al Qaeda commanders.

The president's latest speech follows his earlier announcement that some top al Qaeda suspects had been moved from secret prisons around the world to the U.S. Naval Base at Guantanamo Bay in Cuba, where military trials are now planned. But he will need the help of Congress to make those trials take place.

In a security showdown, Democrats are raising serious doubts about the president's latest anti-terror moves and it's not just Democrats who differ with the president. Our White House correspondent Elaine Quijano is standing by with more on that.

But let's go to our congressional correspondent, Andrea Koppel, with more on this showdown on Capitol Hill -- Andrea.

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Wolf, that's right. Much as the White House and as Republicans here on Capitol Hill would like to portray Democrats as being obstructionists, Democrats are quick to point out that, in fact, there are three leading Republicans who are also playing spoiler, among them -- these are all members of the Senate Armed Services Committee -- John Warner, the chairman; John McCain, former POW; and also Lindsey Graham, himself a 25-year veteran of being a military lawyer, someone who's known as a JAG.

I had the opportunity to speak to Senator Graham this afternoon and asked him where things stand in terms of negotiations with the White House. He said that they are 90 percent in agreement on the administration's plan, but there is still 10 percent that they are working on.

In fact, members of the Senate Armed Services Committee just wrapped up a behind closed door meeting with the members of the administration and Department of Justice. Here's Senator Graham explaining one of the key differences that still remain.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: There's a provision in the administration's proposal that would allow the jury to receive classified information not shared with the defendant, and they could find the person guilty based on information that the defendant never saw or could challenge.

That's never been done in the history of our legal system. That's not necessary, in my opinion, to get a conviction. The prosecutors don't need that tool.

(END VIDEO CLIP)

KOPPEL: Now, Senator Graham went on to say that it would be, in his words, "political malpractice" not to get a bill through Congress by the end of this season, which will be at the end of the month, Wolf.

And, in fact, privately, the sense is that the Republicans do have the votes to get this bill out of committee and to have it supported on the floor if the administration doesn't sign onto some of their ideas, Wolf.

BLITZER: Republican lawmakers were speaking out. Democratic lawmakers were also speaking out coming up with their own initiative, if you will, Andrea. Tell our viewers what they were promoting.

KOPPEL: Well, Wolf, for the fourth day in a row, Democrats here on the Hill have been pounding away, making national security front and center on their agenda, trying to put Republicans on the defense, turn the tables on them, if you will. And in this case, today's photo-op centered on a new piece of legislation that Senate Democrats are putting forward entitled "The Real Security Act of 2006."

Now, while in fact, it didn't really include any new ideas, or new criticisms per se, they were all included in one lump sum. In particular, what they are doing is criticizing the Bush administration yet again for not enacting the recommendations made by the 9/11 Commission.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MINORITY LEADER: There's a reason five years after 9/11 that America is not as safe as it needs to be. It's because Republicans play politics of national security but fail when it comes to the policy of national security. If President Bush and Republicans in Congress are serious about protecting the country, they will stop frightening the nation and start doing something to make us safer.

(END VIDEO CLIP)

KOPPEL: Congressional Democrats continue to keep up the drumbeat. Tomorrow, Wolf, over on the House side, you're going to hear Democrats echoing many of these same themes. The House Homeland Security Committee will be handling that one -- Wolf.

BLITZER: Andrea, thank you. Andrea Koppel on the Hill.

So that makes it three speeches in three days from the president, all aimed at underscoring his tough stance on terror. What's behind this stepped up White House campaign?

For some answers, we will turn to our White House correspondent Elaine Quijano -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, as you just heard from Andrea, Republicans and Democrats are fiercely trying to fight it out over which party would make the country safer. Today, we heard the president weigh in once again on the increasingly complex terror debate.

(BEGIN VIDEOTAPE) QUIJANO (voice-over): Just days away from the fifth anniversary of the September 11th attacks, and two months away from midterm elections, President Bush urged Congress to move quickly on legislation dealing with military court trials for high-level terror suspects. He suggested any delay would mean putting off punishment for the alleged mastermind behind 9/11.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The sooner the Congress authorizes the military commissions I have called for, the sooner Khalid Shaikh Mohammed will receive the justice he deserves.

QUIJANO: Hours later, House GOP leaders announced they would take up the measure within the next couple of weeks. They dismissed concerns expressed by some moderate Republicans in the Senate over a provision that would bar terror suspects from viewing the evidence against them.

In a statement, House majority leader John Boehner and Duncan Hunter, chairman of the Housed Armed Services Committee, said, quote, Khalid Shaikh Mohammed, his conspirators and other terrorists should not be afforded rights from a judicial system of a country they seek to destroy. Democrats argue the president and Republicans have mismanaged the terrorism fight.

REID: Now the White House wants Congress to clean up their failures. This is not a question of will. It's a question of competence, from Katrina to Iraq to the war on terror, this White House has proven incapable of doing the job and rather than acknowledge their mistakes, they use fear, fear, fear, and more fear as a national security policy.

(END VIDEOTAPE)

QUIJANO: Now, the president today also strongly defended the National Security Agency's domestic surveillance program and he urged Congress to get behind it, saying that he would continue to use every element of U.S. power to pursue enemies and prevent attacks, Wolf.

BLITZER: Elaine Quijano at the White House, thanks very much. Let's get back to our top story, this new al Qaeda videotape, purported videotape, that is, showing Osama bin Laden meeting some five years ago on the eve on 9/11 with some of those al Qaeda hijackers. Peter Bergen is joining us now live from Kabul.

Peter, what's your assessment of this videotape? I assume you have seen these excerpted that aired on Al-Jazeera.

PETER BERGEN, CNN TERRORISM ANALYST: Wolf, I have seen them. I don't think it's any surprise to people who are paying attention to the al Qaeda story that al Qaeda would try and mark the fifth anniversary of 9/11 in some way. They have done this in the past, releasing so-called suicide wills of some of the hijackers around the first anniversary of 9/11, giving interviews to Al-Jazeera for airing around the first anniversary of 9/11.

What is surprising to me, Wolf, is that we don't have a videotape or audio tape from bin Laden himself. Maybe we will get that in the next few days. I think if we don't, I think there's some serious questions about what his status is. Because he will definitely want to mark this event. We also, by the way Wolf, haven't heard from him talking about Lebanon, which was the biggest story in the Muslim world, even bigger than Iraq for a period of time.

We have heard from his deputy, Ayman al-Zawahiri, commenting on the Lebanon situation, but not from bin Laden himself. I will give him another week, but I think that if he's not sort of incapacitated in some manner, he will get a tape out. That would certainly be his desire, Wolf.

BLITZER: When was the last time we have heard from Osama bin Laden?

BERGEN: The last time, well we have had five audio tapes this year, one a couple of months ago. So, and the tapes usually have some kind of time stamped. They usually react to some recent news event. So, you know, we have heard from him relatively recently but the last time we saw a videotape from him was October 28th, 2004, just before the U.S. presidential election. Unlike his deputy Ayman al-Zawahiri, who has released a dozen videotapes this year, bin Laden really hasn't done any videotapes at all, except this historical footage that we are getting today.

BLITZER: In terms of anniversaries, how big of a deal historically is this for al Qaeda to commemorate some sort of anniversary by undertaking, shall we say, another terrorist attack?

BERGEN: Well, I think that fortunately the plot that was averted in London, the plan to bring down multiple American airliners with liquid explosives, in my view was al Qaeda's attempt to mark the fifth anniversary of 9/11. That didn't happen and I doubt that they have a serious plan B.

If you think about the 9/11 attacks, Wolf, the plan B was Zacharia Moussaoui, a rather inept terrorist, and also Richard Reid, the so-called shoe bomber, so if they do have a plan B, it's not going to be something spectacular. It's going to be one of these sort of almost lone wolves, who may not be very effective.

BLITZER: Peter Bergen is on the scene for us in Kabul, Afghanistan as we approach this fifth anniversary of 9/11. We are going to be checking back with you Peter. Thank you very much.

Let's check in with Zain Verjee for a closer look at some other stories making news, Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, it's a pivotal day in Iraq. The U.S. officially transferred control of Iraqi military forces to the Iraqi government, but the day was marred by violence. Insurgents attacked across Baghdad, killed at least 20 people and 24 bodies were found dumped in various locations of the city. In the meantime, the number of U.S. military deaths in Iraq has now reached 2,664.

The latest victims were killed yesterday, two U.S. soldiers and one marine. And what's believed to be the first tape from the new leader of al Qaeda in Iraq has now been released. A snippet of the tape audio tape was broadcast on Al-Jazeera TV. The station identifies this man as Abu Hamza al-Muhajer. The speaker criticizes Sunni participation in the Iraqi government and urges militants to unite.

Taliban forces appear to be gaining ground in southern Afghanistan. NATO's top military commander says more troops are needed there to back the alliance's violent struggle against the Taliban. A widening insurgency has left hundreds of people dead, 21 militants were killed today in NATO air and ground attacks. We are going to bring you a live report from the Pentagon in the next hour on the latest developments in southern Afghanistan.

British Prime Minister Tony Blair has given in to a fierce revolt in his Labor Party today. He reluctantly promised to quit within a year but he refused to set a specific departure date. Blair's popularity began sinking when he committed his nation to the U.S. led war in Iraq three years ago. His Labor Party is now trailing the opposition Conservative Party in opinion polls, Wolf.

BLITZER: I guess that makes it official, he becomes a lame duck as of today. Zain thank you very much, Zain Verjee reporting.

Jack Cafferty has the day off. He will be back on Monday. Up next the battle over illegal immigration. Demonstrators marching in Washington, but is the real story out there on the campaign trail?

Plus, new numbers in the next race for the White House. We are going to tell you which Democrat and which Republican top our new CNN poll.

Plus Bill Clinton and his former national security team take ABC to task over the networks dramatic miniseries, "The Path to 9/11." We're going to tell you what is going on. He is angry. Stay with us, you are in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: New skirmishes in the immigration battle, hundreds of people are taking part in a rally outside the Capitol right now. They are calling on Congress to give illegal immigrants the right to stay in the United States legally. The turnout, though, far lower than expected.

But inside lawmakers say reform efforts are dead for now. Our chief national correspondent John King is standing by in Arizona with what is going on out on the border, but let's go to our congressional correspondent Dana Bash with more on the latest developments up on Capital Hill, Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Wolf, organizers had predicted huge numbers for the rally going on outside the capital, but, as you said, our colleagues there say they are actually more like a few hundred people, rather than the hundred thousand that organizers had predicted. That disappointing turnout so far matches the disappointing but not surprising news that came from House Republican leaders today about immigration.

They announced their focus from now until election day will be on border security. The same thing they have trumpeted over on the House side since the beginning of this debate. That is going to be border security, not the guest worker program allowing a path to citizenship that the Senate passed, and certainly that the kind of idea that the president has supported.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have one million people coming across that border every year, undocumented, going around the check points. We don't know who they are, what they are carrying on their backs or what their purpose is. We need to do that. Before you have a guest worker program or any other program, you need to heal the wound or stop the bleeding. And I think that's so important.

(END VIDEO CLIP)

BASH: Now, house Republican leaders were careful not to declare the immigration overhaul actually dead, very careful not to do that in public. But in private, GOP aids say that there is no way that this is happening before election day.

In the Senate, even Republicans who sponsored this legislation say they have all but given up hope. For example, Senator Mel Martinez, a Republican of Florida, told me, I just don't believe that we will be able to get comprehensive reform done.

Now, in the house what they said they are going to do is next week hold a forum with committee chairmen talking about what they've learned in the summer-long hearings that they held around the country, at the borders and elsewhere, to talk about what they're going to do in terms of a piece of legislation focusing on one thing, and one thing only, and that is border security -- Wolf.

BLITZER: Easier said than done. Thanks very much, Dana for that.

The immigration controversy is looming over many congressional races this election season, especially out in the southwest, in the states that border Mexico. Out chief national correspondent John King is standing by in Arizona with this part of the story -- John.

JOHN KING, CHIEF NATIONAL CORRESPONDENT: Wolf, we're in Naco, Arizona. As you can see, this House district literally runs right up against the border with Mexico. Naco, Mexico just on the other side of this fence.

And the results of this election year, first in the primary campaign next week, then in November, will go a long way to answering two critical questions this campaign year: which party will control the House when it convenes for the new Congress next January, and whether the president has any chance at all of getting his guest worker program passed by the Congress during his final two years in office. (BEGIN VIDEOTAPE)

KING (voice-over): The new frontier in American politics is marked by barbwire and pointed rhetoric.

RANDY GRAF (R) ,ARIZONA CONGR. CANDIDATE: This here is national security.

KING: This conservative Randy Graf says, seal the border, whatever it takes. And make clear to the millions who have already crossed it illegally, they will not be allowed to work or collect government benefits.

GRAF: To suggest that we are going to grant amnesty and we are going to grant residency and give them status, and then follow it up with citizenship just doesn't make any sense to any sense to me.

KING: Graf's views are labeled extreme by both Democratic and Republican rivals, yet his tough law and order stance is defining the race here in Arizona's 8th Congressional district. The district stretches from Tucson to the Mexican border.

In most years, Steve Huffman would have a lock on the Republican nomination. He has more money and is backed by the retiring incumbent and the national Republican establishment.

But while he opposes citizenship for anyone who broke the law to enter the country, he supports a new guest worker program open to millions who came here illegally.

STEVE HUFFMAN, (R) ARIZONA CONG. CANDIDATE: You are not going to get people come out of the shadows unless we have some sort of legal status that has got to be available to them.

KING: To Randy Graf, Huffman's position equals amnesty, and Huffman's script for calls to Republican voters reflects a campaign on the defensive.

UNIDENTIFIED FEMALE: He opposes amnesty for illegal immigrants, and will lead the fight to secure our borders.

KING: There is no immigration civil war among the Democrats. Both Gabrielle Giffords and her leading rival in next week's primary support a guest worker program with a path to citizenship.

GABRIELLE GIFFORDS (D), ARIZONA CONG. CANDIDATE: This district is used to voting for moderates, it's a true swing district.

KING: Yet Giffords is clearly concerned the amnesty label has power.

GIFFORDS: We have to have a comprehensive solution to the problem. It's not just about security, it's security plus.

KING: Patty Weiss is the other leading Democratic contender.

PATTY WEISS (D), ARIZONA CONG. CANDIDATE: I have a five part plan for immigration and border security.

KING: She mixes talk with of better border patrols with worries this debate can sound intolerant

WEISS: To just say anyone who is brown, anyone who speaks Spanish is threatening to us is just not the American way.

(END VIDEOTAPE)

KING: To give you just one example that shows you how much the national parties believe this is a critical race when it comes down to control of Congress, the Democrats are spending money against the moderate Republican Steve Huffman.

They are trying to push him out of the campaign because they want because they want the Democrat to run against the more conservative candidate Randy Graf. The Democrats think that is their best chance to pick up this seat.

But, Wolf, Randy Graf says he thinks both the Democrats and his own Republican establishment just don't get it. He says they are missing the way here, they are on the wrong side of the border debate and he believes if he can win the primary, he can keep this seat in Republican hands. It's a fascinating race -- Wolf.

BLITZER: As you know John, Ken Mehlman the chairman of the Republican party and other Republicans, they really in recent years have been going after the Hispanic vote. Out there in Arizona how concerned should Republicans be that they could lose, big-time, this Hispanic vote if they continue this stance on immigration?

KING: Well, that is a fascinating sub plot of what is a fascinating race. The Democrats say that's critical to their chances in November. About 15 to 18 percent of the district is Latino voters. They think they will rally around the Democratic candidate, especially if the more conservative Randy Graf is the Republican nominee.

But he begs to differ, and again, he says he will prove his case when the election has held out. He says if you talk to lower income Latinos along the border who came to the United States legally, he says they are more at risk of losing their job, of having the economy undermined by illegal immigration.

And he thinks a fair amount of them are willing to support someone who says, first stop the illegal immigration, make sure this border is sealed, and then debate everything else, and do it on the basis of fairness. Don't reward illegal behavior. He says he can do OK among Latinos but that is one of this year's big campaign questions.

BLITZER: John King, on the scene for us. Thanks very much. And John King, Dana Bash, and as you saw earlier, Elaine Quijano and Andrea Koppel are all part of the best political team on television, CNN, America's campaign headquarters.

By the way, our new CNN poll asked which party would do a better job on immigration. Forty five percent say the Democrats, 38 percent say Republicans.

Still ahead they are increasingly challenging Republicans over how they are running the war on terror, but do the Democrats have a plan? I'll ask Senator Barbara Boxer. She's standing by to join us live. Plus, gay marriage, just one of the controversial issues both sides hope will entice voters to the polls.

Our senior political correspondent Candy Crowley is on the story. Stay with us, you are in the SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington.

Let's get back to our top story, terrorism and the showdown over security.

In the latest of a series of speeches, President Bush today said, the lessons of 9/11 have been learned, citing his record in foiling more attacks -- Democrats, though, arguing Republicans have ignored the lessons of 9/11, saying they can do a better job.

Joining us now live from Capitol Hill is the California Democratic Senator Barbara Boxer.

Senator, thanks very much for coming in.

I have heard a lot of Democrats say this with considerable worry over the past couple days: The Republicans, the president, his team, they are doing it again, just as they did on the eve of the 2004 presidential race. They're -- they are making this war on terrorism the big issue. Americans are going to be frightened. And you know what? Republicans are again going to win.

SEN. BARBARA BOXER (D), CALIFORNIA: Well, we say bring it on right now.

I mean, you heard our leader, Harry Reid, say, you can run this play once, twice. By the third time, the American people get it. And we say it's time to stop scaring the American people, and start protecting them. And that means adopting the recommendations of the 9/11 Commission, protecting our ports, our nuclear power plants.

You know, they are taking away lip gel at the airports, but they're not screening the cargo that goes into the passenger planes. This is just one example. And I have been working on a bipartisan basis to get them to provide defenses against shoulder-fired missiles on our aircraft.

So, they really do a great job of scaring us, but they are not making the investments in homeland defense. And I call them soft on homeland defense.

BLITZER: Well, the president disagrees with you.

Listen to this...

BOXER: Of course he does.

(LAUGHTER)

BLITZER: Listen to this little clip from his speech earlier today in Georgia.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have put in place the institutions needed to win this war. Five years after September the 11th, 2001, America is safer, and America is winning the war on terror.

(END VIDEO CLIP)

BLITZER: All right, two points. Is America safer, and is America wining the war on terror?

BOXER: Let's just say America is not as safe as it should be. Of course, we have had some good successes. Thank goodness for that.

But the fact is, we are clearly not as safe as we should be, when the 9/11 bipartisan commission is giving this administration failing grades. So, he can say it all he wants, but the public is very smart. We have tried over and over again, we Democrats, to invest in interoperable communications.

Very simple. If, God forbid, there is a terror attack, we want the police to be able to talk to the sheriff and to the first- responders and the firefighters. They won't make that investment.

So, again, you can talk a good game, but you really need to walk the walk. And that's what we are about. So, we are very excited that he's making this an issue. We feel really very, very good about it. We feel like we are on solid ground. And, as a matter of fact, this week, I think we are proving it with some of the issues we are bringing forward on the defense bill.

BLITZER: I remember, on the eve of the 2004 presidential race, there was an appearance from Osama bin Laden. He made his statement. And, by almost all accounts, that wound up helping the president get reelected, beating John Kerry. Now, today, we see new videotape from Osama bin Laden, previously shot, purportedly on the eve of the 9/11 attacks.

How worried are you that, the more he comes out and rattles the American public, the more the American public is likely to vote for Republicans?

BOXER: Well, the more Osama bin Laden comes out, the more people know that we didn't get him.

And, instead of going after Osama bin Laden in Afghanistan -- which, by the way, every single senator voted to go to war against al Qaeda and to go to war against Osama bin Laden -- they turned around. They went into Iraq.

Three hundred and eighteen billion dollars later, there's now terror cells in Iraq that weren't there before. The thing is descending into a horrible situation of civilian strife. And we still don't have Osama bin Laden.

So, I think the things that worked before, the American people are stepping back. And they understand that fear paralyzes you. And you know what? We can't be afraid of Osama bin Laden. We have to go get him. We have to protect the American people, stop scaring them, and do our job.

BLITZER: Barbara Boxer, the Democratic senator from California, thanks for coming in.

BOXER: Thanks for having me.

BLITZER: And up next: voters on both sides already picking their favorites for the 2008 race for the White House. We're going to show you the results from our new CNN poll. You might be surprised.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

The next race for the White House tops today's "Political Radar." Our new poll shows -- get this -- Rudy Giuliani the number-one choice among Republicans to be their 2008 presidential nominee. The former mayor of New York leads Senator John McCain of Arizona by 11 points, a wider margin than Giuliani had in our polls earlier in the year.

The former House speaker, Newt Gingrich, and the Virginia senator, George Allen, fill out the top four. Hillary Clinton continues to dominate the field among Democrats. Our new CNN poll, conducted by Opinion Research Corporation, shows that the senator from New York is the top choice among Democrats to be their presidential nominee. Former Vice President Al Gore and the 2004 ticket of John Kerry and John Edwards round out the top four.

We're going to have much more on these numbers coming up in today's "Strategy Session."

New ads are flying back and forth in Connecticut in the battle between Senator Joe Lieberman, who was defeated in last month's Democratic primary, and his Democratic opponent, Ned Lamont. A group of Iraq and Afghanistan war veterans are out with a TV ad supporting Lieberman, saying they have got his back. The veterans also thank Lieberman, who is now running as an inspect, and they thank him for his support of U.S. troops.

But another veterans group is out with newspaper and radio ads attacking Lieberman for his stance on the war in Iraq. They claim Lieberman is not asking the tough questions about how to fight this war in Iraq. Today is the first full day back for the House of Representatives. Lawmakers are only back in town until the end of the month, when they hope to break again and head back out on the campaign trail. So, with so much on their agenda and so little time to act, wait until you hear what their first major vote was all about today: horse meat.

Yes, the House voted finally today to outlaw the slaughter of horses for human consumption. It's unclear if the Senate will act on this issue. But the House has now acted.

Coming up: Republicans play the terror card that helped them win in 2004. Can it work again? We will talk about that in our "Strategy Session" with Donna Brazile and Bill Bennett. They're standing by live.

And coming up in our next hour, we are going to show you why some members of the Clinton administration, from the president on down -- that would be the former president -- are fuming right now over a new network miniseries about 9/11.

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

(COMMERCIAL BREAK)

BLITZER: With a series of speeches kicking off the midterm campaign season, is President Bush laying claim to being toughest on terror? Democrats say they have got better ideas, as far as national security is concerned.

Joining us now in our "Strategy Session," CNN political analyst and Democratic strategist Donna Brazile, along with CNN contributor Bill Bennett. He's the host of "Morning in America."

Donna, listen to what the president said just a little while ago down in Georgia.

(BEGIN VIDEO CLIP)

BUSH: Imagine a world in which state sponsors of terror have a nuclear weapon to be able to blackmail the world. Imagine such a world. I can see it coming, if America does not do our duty, and support moderation over extremism.

(END VIDEO CLIP)

BLITZER: All right. It's clear what the president's message is. And that is that this issue of terrorism is not going away. You need strong, tough leaders to deal with al Qaeda. Reelect Republicans.

DONNA BRAZILE, CNN POLITICAL ANALYST: Yes. It's clear that the president has a P.R. strategy to rally partisan, but what is not clear is that we have a strategy to really stop North Korea from possessing nuclear weapons, and, of course, Iran.

Look, this is not just about rallying partisan. The Democrats, under Harry Reid's leadership, put forward a real security act. This is a bill that is comprehensive in nature. It's aggressive. It addressed some of the issues that the president is concerned about, in terms of giving him the tools to bring the terrorists to justice.

The FISA reauthorization, bringing it into law is in this bill, comprehensive bill. Joe Biden out -- also spoke out today, in terms of, again, having a comprehensive approach.

So, Democrats are prepared for the president to recycle old political language. But, right now, we need a security act.

BLITZER: So, what you are saying is, they are not going to be so-called swift-boated once again.

(LAUGHTER)

BRAZILE: And not going to be on the sideline and playing dead, like we did four years ago.

BLITZER: Here's the Democratic leader in the Senate, Harry Reid, responding earlier this morning to the president's latest speech.

(BEGIN VIDEO CLIP)

REID: I want to know, what took him so long? He's had years to bring these murderers to justice. And he's waited until now, two months before the election. It's a cynical, but typical move from the campaigner in chief.

(END VIDEO CLIP)

BLITZER: All right.

How cynical, how much of a political move is this by the president?

BILL BENNETT, CNN CONTRIBUTOR: I don't know whether politics, partisan politics, enters into this or not. I think it's a good move. It was applauded, I think, by most people.

And, obviously, people have been saying, you know, let's bring light on this. Let's get these people into the system. Let's have proper judicial proceedings.

But the larger question of the politics of terror, I think, is exactly the right question. This is what our politics should be about. I don't think it's cynical. I think, you know, the questions of good and evil and right and wrong and how we prevail in the world are what politics should be about.

And let's face it. We have been safe for five years. There have not been these attacks. The Democrats have come up with a number of proposals. Some of them are sensible enough. But I don't think there's any offense in their proposals.

What the president is saying, we need to keep the heat on. We need to keep the heat on in Afghanistan. We need to keep the heat on in Iraq. Retreating from Iraq is not the right way to go.

(CROSSTALK)

BENNETT: When we get these videos of Osama bin Laden, yes, it reminds people he's still out there. But it reminds people there's a threat out there.

And when we get Hamza here, the new leader in Iraq, standing up, saying, we must prevail, we must defeat them, I think that's very helpful to what the president is saying. We can't lose there.

BLITZER: You want to respond to that?

BRAZILE: Well, the drumbeat of fear is not what scares Democrats. What scares Democrats and what really scare all Americans is, what is the strategy?

What this new plan the Democrats offered -- and I am glad to talk about a plan, vs. being on the defense -- is that it talks about what we can do right now in Iraq to begin to responsibly redeploy our troops. And it talks about what we can do right now to comply with the Supreme Court-mandated Hamdan vs. Rumsfeld.

So, there is some new stuff in this legislation. But it also gives the Democrats an opportunity to sit at the table with the Republicans and say, let's go forward together, because our enemies are united.

BLITZER: This war on terror, it may have a connection with the results of this latest CNN poll on...

BENNETT: Yes.

BLITZER: ... Republican presidential prospects...

BENNETT: Yes.

BLITZER: ... in 2008.

We asked registered Republicans who they would like to see be the next president. Look at this -- Rudy Giuliani, 31 percent, widening his lead over John McCain, 20 percent, Gingrich at 12, George Allen of Virginia at 7 percent.

Is that your reading of the Republican mood out there, that Rudy Giuliani...

BENNETT: Yes.

BLITZER: ... is the man?

BENNETT: Well, it -- what it tells you is something about what the priorities are for the Republican Party. This may even give a clue to the Democrats for figuring out what Republicans are about.

This is not primarily the party that is opposed to gay marriage. That's not our number-one issue. The number-one issue is terror.

(CROSSTALK)

BLITZER: Rudy supports gay rights.

BENNETT: Rudy Giuliani is a social liberal. And the fact that he is leading and widening -- and the guy who is right behind him, John McCain, is, you know, not exactly, you know, a pure thoroughbred right-wing, by the media's lights.

So, it tells you that a lot of the American people, Republicans, are concerned about the war on terror. They identify -- that's obviously the identification with Rudy Giuliani. And they like the cut of his jib. And they like what the president...

(CROSSTALK)

BLITZER: What does it tell you, Donna?

BRAZILE: Well, I don't have a favorite in the Republican -- on the Republican side. But it does say that, at this moment, Rudy Giuliani is popular. After all, it's the anniversary of 9/11, and, of course, most Americans remember the leadership he played in that horrific attack.

BLITZER: Donna and Bill, thanks very much.

BENNETT: Thank you.

(CROSSTALK)

BLITZER: We will continue this.

Donna Brazile and Bill Bennett, they are part of the best political team on television -- CNN, America's campaign headquarters.

Up next: Will issues like stem cell research drive voters to the polls? We will look at what some call race drivers and how they could impact upcoming elections.

And coming up in our next hour, right here in THE SITUATION ROOM: He's one of America's most outspoken critics, the leader of what President Bush has called part of the axis of evil. So, why does it look like Iran's president might be coming to New York City, and soon? We're going to tell you what is going on with Mahmoud Ahmadinejad.

Stay with us. We will be right back.

(COMMERCIAL BREAK)

BLITZER: Stem cells divide the public. The minimum wage issue can raise blood pressure to the max. And the idea of government property seizures give some people seizures themselves. These are among the hot-button issues that will drive voters to the polls in the midterm races.

Here's our senior political correspondent, Candy Crowley -- Candy.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Wolf, you take a close race anywhere in this country, and add in a controversial issue, what you have is a lot of passion, and maybe a whole new dynamic.

(BEGIN VIDEOTAPE)

CROWLEY (voice-over): Jeff McCaffrey was in the Air Force Academy, planning a military career, not a political one. That was before the car accident.

JEFF MCCAFFREY, STEM CELLS RESEARCH ADVOCATE: We want something better than these wheelchairs.

CROWLEY: Now he campaigns, not for someone, but for something.

MCCAFFREY: You know, when the doctor said, you know, you will never walk again, I -- I didn't believe him then, and I don't believe him now, and nor will I ever believe him. And that's because of stem cell research.

CROWLEY: McCaffrey is lending his name and hopes to push for a pro-stem cell amendment to the Constitution in Missouri, a state with a powerful and politically active base of religious conservatives.

ARCHBISHOP RAYMOND LEO BURKE, SAINT LOUIS ARCHDIOCESE: Let it not be upon our consciences that we participated in the violation of the right to life of our brothers and sisters according to the criterion of their size.

CROWLEY: Missouri's stem cell initiative is one of dozens of issues around the country being put to a vote this year. Gay marriage is on the ballot in eight states. At least 10 will vote on banning the government's right to seize property. Six states contemplate an increase in minimum wage. And three consider abortion proposals.

Call them race drivers, controversial issues that entice voters to the polls, in hopes they will also vote for a candidate.

ELIZABETH GARRETT, LAW PROFESSOR, UNIVERSITY OF SOUTHERN CALIFORNIA: They have spillover effects. So, people who come to vote against same-sex marriage tend also to vote for the Republican candidates. People who feel intensely about the minimum wage -- tend to be labor unions, Democrats -- will vote for the Democrats.

CROWLEY: Stem cell could make the difference in a squeaker Missouri Senate race between Republican Incumbent Senator Jim Talent and challenger Claire McCaskill. The question is, who gets the spillover?

Talent says he personally opposes the initiative, but thinks voters should decide. She is all for it. And a majority of Missourians favor stem cell research. But is the initiative enough to get them to the polls?

UNIDENTIFIED FEMALE: The stem cell initiative, it's going to be on the ballot in November.

CROWLEY: Fairs and rallies and lots of campaign chatter are designed to pump up the volume.

TERRY RILEY, KANSAS CITY COUNCILMAN: The buzz is starting now in the barbershops and the beauty salons. People were saying, hey, man, I didn't know stem cell did that. It provides an opportunity for other -- cures for other things.

CROWLEY: Despite a split in his party over stem cell research, Jim Talent may benefit from the loudest buzz and the most passion, fueled by a national organization which galvanizes voters on social and moral issues.

REVEREND RICK SCARBOROUGH, FOUNDER AND PRESIDENT, VISION AMERICA: I am not afraid of losing an election. I am afraid of the church not showing up!

CROWLEY: The conservative base is out in force. The initiative has been the focus of rallies and the topic of discussion in churches.

REVEREND DOUG ZIMMERMAN, HARVEST COMMUNITY CHURCH: The fire wasn't burning before. But there was just a lot of excitement generated by that. The one guy said, "I have got 10 people I can tell." So, that's -- I think that's the idea behind it.

(END VIDEOTAPE)

CROWLEY: The evidence suggests that ballot initiatives drive up voter turnout by 1.5 percent. One way or the other, that's enough to make a difference in Missouri -- Wolf.

BLITZER: Candy, thank you -- Candy Crowley reporting.

We also have got some new numbers out on these divisive issues Candy was just talking about.

Forty-five percent of those polled favor a ban on all abortions, except to save the life of a mother. Fifty-one percent oppose such a ban. But it's almost the opposite on using federal funds for stem cell research. Fifty-one percent say they favor such funding. Forty- one percent are opposed. And a whopping 86 percent favor raising the minimum wage. Only 13 percent are opposed.

Still to come: What if Democrats take over the Congress? Republicans might see that as their worst nightmare. But, for now, they're having fun imagining it online, while Democrats are also having some fun of their own. We are going to take a closer look.

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

(COMMERCIAL BREAK)

BLITZER: Welcome back.

What would the world look like in a few months if the Democrats controlled Congress? That's the subject of a satirical Web site just launched by the National Republican Committee. It's one of several sites surfacing this week in the run-up to the November midterm elections.

Our Internet reporter, Abbi Tatton, has details -- Abbi.

ABBI TATTON, CNN INTERNET REPORTER: Wolf, the date of the satirical "America Weekly" is September the 7th, 2007, and Democrats are in control.

In this Republican vision of a Democratic future, the headline is, "Dems In, Taxes Up." With Democrats in control of congressional committees, Michigan Congressman John Conyers is in charge of the House Judiciary Committee, and is leading impeachment hearings.

Now, a spokesman for the Democratic National Committee says, this is a fear-and-smear tactic from Republicans. The Republican National Committee calls it lighthearted.

But there are certainly many of these sites out there that are popping up, looking forward to November -- from the Democratic Congressional Campaign Committee just this week, three new sites launched targeting Republicans around the country. They say two to three dozen more of these sites are expected in the next few weeks.

From the National Republican Senatorial Committee, a new Web site just today targeting the Ohio Senate race.

But it's not all going against the other candidate. There are some positive tools online as well -- just launched from the Democrats, PartyBuilder, a social networking site to organize online.

The Republicans launched MyGOP, a similar effort, earlier this year -- Wolf.

BLITZER: Abbi, thank you.

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