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The Situation Room
Top U.S. Military Officials Indicate Iraq War Strategy Is Under Review; North Korea's Lucrative Underground Smugglers; Both Parties Scramble To Get Message Out Before Elections; Heightening Tension Along Border Between North and South Korea
Aired October 12, 2006 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, 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: Are military officials set to say the Iraq plan is not working? A top U.S. military commander says the U.S. strategy in Iraq is under review.
And amid the North Korean nuclear crisis, you might not believe what some experts say is partly paying for that country's nuclear program, possibly missiles, drugs, even fake Viagra. We'll have a unique look at North Korea's smuggling network. It's huge.
And should small planes be able to fly over a city that's a magnet for terrorists?
It's 5:00 p.m. in New York City, one day after a small plane crashed into a building. Even the New York governor says he's surprised by flight rules over New York skies.
I'm Wolf Blitzer, you're in THE SITUATION ROOM.
Today more scenes of violence in Iraq and one top military official says it will only get worse. U.S. Military Spokesman General Bill Caldwell says the violence tends to spike during the Muslim holy month of Ramadan, which is now under way. He says the violence will quote, "get worse before it gets better."
Today at least 34 people were killed around Iraq. Nine of them after gunmen stormed the offices of the Sunni satellite TV station. Meanwhile, U.S. officials say the overall Iraq plan is now under review. Details now from our CNN Senior Pentagon Correspondent Jamie McIntyre -- Jamie.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Wolf, Joint Chiefs Chairman General Peter Pace would not say that this is second guessing. But he does say the U.S. policy in Iraq is getting a second look.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): With U.S. casualties in Iraq on pace to make October the deadliest month in two years, the top general at the Pentagon tells CNN the overall strategy is under review. Including the lynchpin of the U.S. exit strategy, relying on Iraqi forces to take up the fight.
GEN. PETER PACE, CHMN., JOINT CHIEFS OF STAFF: Are those assumptions still valid? If they are, OK, then how are we doing in getting to where we're supposed to be going? If we are getting there, and how do we reinforce that? If we are not, what should we change?
MCINTYRE: Pace's candid comments come a day after Iraq Commander General George Casey met with President Bush, whose Iraq policy is being questioned by key members of his own party. Armed Services Committee Chairman Republican Senator John Warner, for instance, returned from Iraq saying a change of course may be needed if the current level of violence continues.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If the plan is now not working, the plan that's in place isn't working, America needs to adjust. I completely agree.
MCINTYRE: He says he and other joint chiefs are debriefing commanders just back from the front lines including one colonel recognized a s a rising star and creative thinker. Colonel H.R. McMasters, the author of the 1997 book, "Dereliction of Duty", considered the seminal work on the military's responsibility during Vietnam to confront their civilian bosses when the strategy wasn't working.
But so far neither Casey, nor his civilian boss, Donald Rumsfeld admit any flaws in the current approach. And Rumsfeld gave this terse response when asked if he was responsible for what's gone wrong in Iraq.
DONALD RUMSFELD, U.S. SECRETARY OF DEFENSE: Why do we have to keep going through this? Of course I bear responsibility. My lord, I'm secretary of Defense. Write it down, quote it. You can bank it.
(END VIDEOTAPE)
MCINTYRE: Meanwhile, the other key aspect of the U.S. strategy getting the Sunnis and Shias to form a unity government appears to be unraveling as well. There is bitter recriminations about a law just past in the Iraqi parliament that would allow the creation of semiautonomous federal states. Something the Sunnis fear would lead to the Kurds having control to the north, the Shia in the south, and they being isolated in an area without oil in the central part of the country -- Wolf.
BLITZER: Jamie, at the Pentagon, thank you. And there are also new developments and another problem facing the White House. That would be the North Korean nuclear threat. United States is hoping for United Nations resolution by tomorrow, but there are some serious sticking points under way right now. Our senior U.N. Correspondent Richard Roth has details -- Richard.
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Wolf, once again the United States is locked in a resolution fight with China and Russia. The U.S. and Japan are pushing hard for a vote Friday on a sanctions resolution aimed at Pyongyang North Korea. But Russia and China still have reservations.
(BEGIN CLIP)
JOHN BOLTON, U.S. AMBASSADOR TO UNITED NATIONS: We would always like the highest number of votes in the Security Council. And we have not given up on our efforts to achieve that. But we've also said that it's important that we send a very clear signal. And we're still trying to persuade China, what I think is the overwhelming sentiment of the other members of the Council to support these provisions.
(END VIDEO CLIP)
ROTH: All the countries want to punish North Korea for its nuclear tests. But China and Russia are worried about the use of force, through this resolution, which Ambassador Bolton rejects -- Wolf.
BLITZER: Richard, thank you.
Among other things the proposed sanctions seek to clamp down on North Korea's vast smuggling network. Coming up later this hour, CNN's Brian Todd will show us the operation that includes everything from missiles to fake Viagra, earning North Korea 100s of millions of dollars each year. This is an important story.
Let's now turn to the Mark Foley scandal and an important question. What did a key figure in the scandal say today behind closed doors? Former congressional aide Kirk Fordham appeared before the House Ethics Committee and he was expected to tell all. Our Congressional Correspondent Andrea Koppel joining us now with the latest -- Andrea.
ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Well, four hours and counting that's how long Mark Foley's former chief of staff has been behind closed doors, in the hot seat, answering questions for members of the Ethics Committee.
Since his story broke a couple of weeks ago, Kirk Fordham has, himself, become a little bit of a hot political hot potato. First because it was learned he was still advising his former boss before the scandal broke. And then later because of allegations he made regarding who knew what, when within the speaker's office.
Now before Foley (sic) arrived here on the Hill, this afternoon, reporters cornered him at his home here in D.C. and peppered him with questions.
(BEGIN VIDEO CLIP)
QUESTION: Are you nervous about testifying under oath?
KIRK FORDHAM, FMR. CONGRESSIONAL AIDE: Not really. I slept very well last night. Got a good night's sleep, talked to my family. You know, going to tell the truth. QUESTION: What is that? What are you going to tell them?
FORDHAM: That'll become apparent once the report's issued. But I'm pretty comfortable with what I'm going to say today.
(END VIDEO CLIP)
KOPPEL: Now a source familiar with Fordham's version of what happened tells CNN that Fordham had planned to tell the committee that he had spoken with and notified a top aide to House Speaker Dennis Hastert about Foley's behavior around House pages. Now this directly disputes the account that we've gotten from House Speaker Dennis Hastert's office, which maintains that the first time they learned about Foley's inappropriate e-mails was about a year ago.
And Wolf, the chief of staff to Dennis Hastert has said, quite simply in a statement, what Kirk Fordham said, has not happened -- or did not happen, Wolf.
BLITZER: He's still, as far as we know, behind those closed doors? He's testifying before the House Ethics Committee? He has not emerged yet?
KOPPEL: That is correct, Wolf.
BLITZER: Andrea, thank you. We'll continue to watch this story.
Meantime let's go back to Jack in New York -- Jack.
JACK CAFFERTY, CNN ANCHOR: Wolf, the United States military is now admitting that violence in Iraq is, quote, "at an all-time high," unquote. The number of sectarian killings each month has more than tripled since February.
U.S. military statistics show that death squads killed 1,450 people in the city of Baghdad in the month of September. That's up from 450 last February. So far this month, they've killed another 770 people. And remember, we are just talking about Baghdad. Today 17 Iraqis were killed in Baghdad. Including nine who were shot to death in the offices of a Sunni satellite TV station.
Police say they found another 40 bodies today that were riddled with bullets and showing signs of torture. More than 400 bodies have been found like this in Baghdad so far this month. And today is just the 12th of October. Meanwhile, the U.S. military death toll is now 2,753, since the start of this war.
Republican Senator John McCain, a close ally of President Bush, says the war in Iraq is drifting sideways. Bob Woodward's book, "State of Denial" predicts the violence in Iraq will be worse next year than it is this year.
So here's the question: When it comes to Iraq, what are we doing? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile.
BLITZER: Jack, I think you said Senator John McCain, you meant Senator John Warner.
CAFFERTY: I'm sorry. Did I say McCain? I did mean Senator John Warner of the Armed Services Committee, just back from a trip to Iraq and was quoted as saying that the war there is going sideways.
BLITZER: And no one has been more supportive of the president of this war than the chairman of the Senate Armed Services Committee John Warner.
CAFFERTY: No, that was seen as kind of a serious blow to the president's sort of stay the course strategy. When Warner is saying we have to give this thing two or three more months. If we don't start seeing different results we have to consider a change in our approach over there.
BLITZER: McCain is still strong supporter of the president's strategy when it comes to the war in Iraq ?
CAFFERTY: Yes.
BLITZER: OK, Jack, thank you.
If our viewers would like a sneak preview of Jack's questions, plus an early read on the today's political news, and what's ahead here in THE SITUATION ROOM, here's what you do to sign up for the daily e-mail alert, go to CNN.com/situationroom.
Up ahead, concerns about air traffic dangers in New York City in the wake of the crash that killed New York Yankees pitcher Cory Lidle. We'll have the latest. That's coming up.
Also, increased tension along the border between North and South Korea. Our Zain Verjee was recently there, along the Demilitarized Zone. She learned firsthand the rules of engagement. Zain standing by live, with details.
Plus, the midterm election now less than four weeks away. But everything we know could change in a matter of days. We have a midterm playbook for you. Stay with us, you're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: We're standing by to speak live with Debbie Hersman of the National Transportation Safety Board. She's in charge of this investigation into that crash yesterday in New York City; into that 50 story residential complex.
We're also getting some new details today on a mortar attack on a U.S. military compound that set off a massive blaze and a series of explosions, shaking buildings across Baghdad. You remember that. There's now a video emerging online. And it's giving us the closer look at the explosions as seen from the ground. But who exactly is responsible for the attack that led to the horrendous explosion? Let's bring in our Internet reporter Jacki Schechner -- Jacki.
JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, this video that's shown up online gives us another perspective of those mortar attacks. Or those attacks at the Forward Operating Base Falcon. This video showed up on a radical Islamic blog. And according to Octavia Nasr, who is CNN's Senior Editor of Arabic Affairs, it seems to be an insurgent video.
Now the banner that shows up on the Web site reads Iraqi Resistance TV. An organization called Jaish Al-Fatiheen, or Media Committee of the Army, claims they were responsible for the explosions. They also say they are responsible now for this video. They say one of their fighters captured it. And there's 19 more minutes of this.
Now the international desk tells us there is no evidence that this group is, or is not, responsible for the fire or the video. In fact, another more established insurgent group called the Islamic Army in Iraq is also posting online that they are responsible for the explosion. They say it was caused by two Katyusha missiles and three mortar rounds, but that is inconsistent with what the U.S. military says caused those explosions -- Wolf.
BLITZER: All right, Jacki, thank you.
Meanwhile in New York, residents are returning. The investigation is under way and we are learning new details about the plane crash that killed New York Yankees' Pitcher Cory Lidle.
And we also have some new video of the crash. Lidle and another man died when Lidle's plan slammed into the high-rise condominium building in New York's Upper East Side. That second victim has now been identified as Lidle's flight instructor 26-year-old Tyler Stanger, from Southern California.
Investigators still don't know which man was flying the plane. And they say initial tests show heat from the fire deployed its parachute, but not the pilot.
(BEGIN VIDEO CLIP)
DEBBIE HERSMAN, NTSB MEMBER: Initial field examination shows strong evidence that the propellers were turning at the time of impact.
A representative from the parachute manufacturer was also assisting us on scene today. He's examined the parachute system. And initial examination appears that it was thermally discharged.
(END VIDEOTAPE)
BLITZER: The crash raising serious questions about post-9/11 air traffic in New York City. Let's go back to New York, CNN's Mary Snow who has been watching this story from the start -- Mary.
MARY SNOW, CNN CORRESPONDENT: Wolf, New York's governor said that yesterday's plane accident points to the need for tighter air space restrictions over New York City. And he even says he was unaware that there were pockets where small planes could fly at low altitudes without being in constant contact with air traffic controllers.
(BEGIN VIDEOTAPE)
SNOW (voice-over): Besides the shock over the crash that killed Yankees' Pitcher Cory Lidle, and a flight instructor, some New Yorkers are equally surprised that in the wake of 9/11, a small plane could get so close to the city's skyline.
JOHN GARRISON, RESIDENT: I've often wonder why would they allow this? I mean, this is really crowded air space.
PATRICIA MONTAGUE, BUSINESS OWNER: I thought after 9/11 that was totally supposed to be banned.
SNOW: New York Governor George Pataki says he didn't know that a small plane could fly above New York's East River under flight visual rules only.
GOV. GEORGE PATAKI, NEW YORK: This is something that I was just as surprised as any other New Yorker yesterday that someone flying visually, not under the control, I believe of any of the towers of the airports, could just circle Manhattan.
SNOW: Pataki is calling on the FAA to review its rules. And some security analysts are asking "what ifs" in the wake of Wednesday's accident.
CHARLES SLEPIAN, CEO FORESEEABLE RISK: If in that aircraft, sitting alongside the pilot was not an instructor or a passenger, but rather 200 pounds of explosives, when that plane flew into that building, we would have seen a major disaster.
SNOW: Some pilots say more restrictions are not necessary. They point out it would be easier to load a car or truck with explosives than a plane.
PHIL BOYER, AIRCRAFT OWNER & PILOTS ASSN.: A small plane the type that went into the East Side building is about the size of a Honda civic, and the weight. It doesn't carry much fuel. It can't carry much of a payload.
SNOW: The mayor questions stricter rules.
MAYOR MICHAEL BLOOMBERG, NEW YORK CITY: Having everybody controlled doesn't necessarily make it safer. It may make it less safe because the controllers can't handle the volume.
(END VIDEOTAPE)
SNOW: And in response to the governor's request for the FAA to review its rules, we've contacted the FAA, but have not been able to get an immediate response. Both the city's mayor and police commissioner said that they are leaving any questions of tighter rules to the FAA -- Wolf.
BLITZER: All right. Thank you, Mary Snow reporting for us from New York.
Coming up, we are standing by to speak live with the NTSB board member on the scene of the plane investigation, Debbie Hersman. There you see her. We are going to be speaking with her momentarily.
Also coming up here in THE SITUATION ROOM. Cigarettes, counterfeit currency, even fake Viagra, all part of what experts say is North Korea's vast smuggling network. We are going to take you for an inside look. Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: For more now on the investigation we are joined by Debbie Hersman of the National Transportation Safety Board.
This investigation only just beginning, Debbie, but do you have a sense what the final conversation was between the cockpit and the air traffic controllers? What they were saying, if anything?
HERSMAN: The last information that we have from the Federal Aviation's air traffic control tapes is that there was communication between the tower and the crew after they took off. The air traffic controller asked if they wanted to be transferred to New York Tracon. The pilot declined, said they were going to be flying a VFR route up and down the river. And that is the final communication.
There is no information about any mayday calls or any further communication with air traffic control after that. They are reviewing air traffic control tapes with the four local airports and the Tracon.
BLITZER: So since there are no so-called black boxes on a small plane like that, the only thing you can go by, are the final radar as well as the conversations that had occurred earlier with the air traffic controllers.
HERSMAN: That's right. And we are going to rely on the evidence on scene. We are documenting that today. We spent a lot of time going up and down the building looking at terraces. Looking at ledges trying to recover parts.
We did find some things we've sent back to our lab in Washington. GPS device, as well as a memory chip for some of the aircraft displays. We do not know if we are going to be able to get any usable information off of that. Obviously, some damage from the impact, as well as some thermal damage from the fire. The memory chip is bent, but we are going to try to see what we can find from that.
BLITZER: We know Cory Lidle, the pitcher for the New York Yankees, was in the cockpit together with his flight instructor Tyler Stanger. Do we know if they filed a flight plan? What was their purpose of taking off yesterday, at around 2:30 in the afternoon, from that small airport in northern New Jersey, Teterboro?
HERSMAN: We haven't been able to locate any flight plan. Do not know of any flight plan that was filed. The information that we have basically indicates that the conversations with air traffic control indicated that they were going to come up and down the river on that VFR corridor.
And the radar track that we reviewed so far does show them doing that. Obviously the point of deviation is the area that we are concerned about, the turn that brought them into the building. And that's why we are here. We are here to investigate the crash. Why that aircraft ended up where it did and resulted in the fatalities.
BLITZER: Was the expectation that this small plane would return to Teterboro after flying around? Because if it was, it sounds like they might have just been out for sightseeing, or for a little bit of a fun ride.
HERSMAN: We don't have any information about where the final destination was. Again, I said -- as I said there was no flight plan filed. So we do not know where they intended to go. We are certainly conducting interviews. Interviews with people who have flown with these crew members before, conducting interviews with people that might have talked to them prior to the accident, to try to see what their intentions might have been. But we do not know at this time.
BLITZER: This plane has a parachute that when all is said and done, if you are in real deep amount of trouble. You could pull a lever, the parachute goes up, and brings the plane safely down to Earth. We've seen the video. We've seen how that parachute operates. Do you have any explanation why they may not have used that parachute?
HERSMAN: We're looking at everything on scene right now. As I mentioned, during the press conference, the parachute is packed, is tightly packed. I looked at that this afternoon, evidence of charring and burn damage. The manufacturer did look at the charge. It was discharged. And his estimate was that that was done as a thermal discharge.
We are certainly looking at some other evidence as part of the system to see if it could have been induced by the crew. At this point in time, we can't say for certain. We are going to follow up on the information that we have.
BLITZER: Debbie Hersman a board member of the National Transportation Safety Board. Thanks very much for joining us.
HERSMAN: Thank you.
BLITZER: Good luck with this investigation.
And coming up, pages in their political playbooks. Publicly both Democrats and Republicans are predicting victory come November. Privately though both sides are worried about what could still happen over these final four weeks.
And in our 7:00 p.m. Eastern hour. Arnold Schwarzenegger's late night adventure. Why his appearance on Jay Leno's "Tonight Show" is causing a political controversy. Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK) BLITZER: You're in THE SITUATION ROOM where new pictures and information are arriving all the time.
Happening now: The U.S. is pushing the United Nations Security Council to pass a resolution on North Korea by tomorrow. Among other things, it seeks to clamp down on the country's smuggling network. We are going to give you an inside look at the vast operation that generates lots of cash for North Korea.
Also, flying high on Wall Street. The Dow Jones industrial average sets a record high. And it's now closing in on the 12,000 mark. CNN's Ali Velshi standing by. He's going to take us behind the rally.
And less than four weeks from election day, can Republicans turn around their declining fortunes? And will Democrats be able to maintain momentum? We'll have a midterm playbook.
I'm Wolf Blitzer, you're in THE SITUATION ROOM.
Midterm elections are less than four weeks away. But both political parties are working as if there is no minute to spare. Democrats and Republicans are scrambling right now to try to get their messages out. Scrambling to convince you, you'd be better off with them in control. Let's bring in our Senior National Correspondent John Roberts. He's taking a look at the playbooks of both of these parties -- John.
JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT: Good afternoon to you, Wolf.
Both sides are confidently predicting victory. But both sides are also very worried about losing on November 7th. The race has rarely been tighter. So is it going to be a close election? Or will it be a blow out? It all depends on turn out and who has the better playbook to motivate voters.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): The Republicans had their secret weapon out Wednesday, First Lady Laura Bush, brining her star power to the tightening race in Tennessee.
LAURA BUSH, FIRST LADY OF THE UNITED STATES: Thank you very much, Bob.
ROBERTS: Many Republicans thankful the election isn't for another four weeks. How bad does it look? How bad does it appear?
ED GILLESPIE, REPUBLICAN STRATEGIST: Clearly, this is not a positive time right now.
ROBERTS: In fact, it couldn't be much worse. The Foley scandal, the ongoing problems in Iraq. New CNN poll numbers that show congressional Democrats the clear preference of voters and leading on all the major issues, including for the first time, terrorism. It all adds up to possible losses for the GOP on November 7th. But Republicans aren't about to go looking for a bridge just yet.
GILLESPIE: Because in politics nothing's ever as good or as bad as it seems and over the course of the next 30 days, things will get back to equilibrium.
ROBERTS: At the moment, Republicans are trying anything. Connecticut Congressman Chris Shays fighting for his political life, contrasted the Foley scandal with Senator Ted Kennedy's famous 1969 accident on Chappaquiddick claiming with Foley at least no one died.
House Republicans also suggested they should haul President Clinton's national security adviser Sandy Berger before Congress to ask him why he stuffed classified documents from the National Archives in his socks three years ago. It's all a way to change the subject and try to make the opposition look shady. Something the Democrats won't take lying down.
ANITA DUNN, DEMOCRATIC STRATEGIST: For democrats, what they need to do is they need to respond aggressively, not be defensive. And they need to take the case of why there needs to be change directly to the Republicans.
ROBERTS: The Democratic strategy is to ride a wave of anti- incumbency and conservative disillusionment with the Republican Party right into the congressional driver's seat.
DUNN: Every day there is a different way to illustrate the fundamental message that it is time for a change, and that these people should not be allowed to rule the country any longer.
ROBERTS: Republicans hope to break that wave with their famous 72-hour get out the vote campaign. And a remarkable database dubbed "the voter vault" that identifies possible Republican voters based on everything from the cars they drive to the magazines they read.
GILLESPIE: It's incredibly valuable. To be able to determine the likelihood that someone will vote Republican, and affix it at 85 percent and then get that person to go vote is a valuable tool.
ROBERTS: Even the Democrats admit Republicans have it all over them on vote operations. Add to that $100 million Republican edge in fundraising, and Democrats are at a significant tactical disadvantage. But what they lack in organization, says political analyst Amy Walter, Democrats may make up for in enthusiasm.
AMY WALTER, THE COOK POLITICAL REPORT: I'd rather have a less organized group of enthusiastic angry people than a well-organized group of disillusioned or disappointed people.
(END VIDEOTAPE)
ROBERTS: Well partisans and analysts alike expect that the Foley scandal is going to blow over soon and that Republicans will begin to bounce back in the polls. But for all of the strategizing, no one can accurately predict that wave effect. Whether it's going to die down in the next four weeks or sweep Democrats to control of one or both Houses of Congress -- Wolf.
BLITZER: John Roberts, thanks very much. Excellent report.
There's important information just coming in here in THE SITUATION ROOM. Let's go to CNN's Zain Verjee for details -- Zain,
ZAIN VERJEE, CNN ANCHOR: Wolf, in the wake of last month's spinach recall, we are now learning from the FDA it's saying its traced the E. coli outbreak to cattle manure in California. Specifically it's identified a cattle ranch next to the Salinas Valley spinach fields. It says that is where the source was. It went on in its briefing to say that there was a genetic match to the cattle manure. We're going to bring you more details though Wolf when we get them.
BLITZER: All right thank you, Zain, for that. Let's get back to our coverage now. These upcoming elections less than four weeks away. What will voters take into the voting booth with them come November 7th? Joining us now our CNN contributor Bill Bennett of the Claremont Institute, the host of "Morning in America," a radio program. Bill thanks for coming in.
BILL BENNETT, CNN CONTRIBUTOR: You bet Wolf.
BLITZER: Here's what the president said yesterday. This is his prediction, listen.
(BEGIN VIDEO CLIP)
G. BUSH: I still stand by my prediction. We'll have a Republican speaker and a Republican leader of the Senate.
(END VIDEO CLIP)
BLITZER: A lot of people think he is engaging in wishful thinking given the polls right now. What do you think? Do you think he's right?
BENNETT: I don't know if it's wishful thinking or not. But if your leader said otherwise, you would drive everybody into despair.
BLITZER: He has to say that then?
BENNETT: Of course he has to say that. Look, there's obviously trouble. A lot of people as said in John's excellent report, a lot of conservatives are unhappy with the Republican Party, but they view the alternative as worse. I think it's going to be a lot closer. Some of the reports we're getting from some of the pollsters and pundits make you wonder why we should have the election at all. This thing is over, it's going to be a Democratic tidal wave. I don't think so. I'm listening.
BLITZER: You're listening, you have a lot of conservative listeners on your radio program. Are they going to be sitting or are they actively going to be going out. Not only and voting but bringing in their friends? BENNETT: A good question. I think my audience is center right. It's a big audience, almost 3 million people. They are saying they're coming out, they're going to vote. They're unhappy with Republicans about lack of action on immigration. They don't like the spending stuff, but, they said the alternative is worse.
The North Korea thing I think really put things into relief and people said we have to think about national security. Obviously there are some problems in Iraq, but who do we want to trust national security to? Democrats don't want missile defense. This is now very important.
BLITZER: Because the polls now show that not only on the war in Iraq, but even on the war on terrorism, Democrats have an advantage. Our most recent CNN poll showed that.
BENNETT: Well I think given the barrage of news and stories it's not surprising. But you know when people look at the situation in Iraq, remember that important hearing with the generals. Where they said much publicized, all the trouble there was in Iraq. And they were asked man by man, general by general, should we withdraw? The answer was no. And that is the Democrat alternative.
BLITZER: Here's the problem the administration has right now in two countries, China and Russia.
BENNETT: You bet.
BLITZER: There's a UN draft resolution circulating. It's already been watered down to stop some of these cargo inspections going in and out of North Korea. The Chinese foreign ministry spokesman saying today, "As to what measures to take, I think the measures themselves are not punitive action. One can say that punishment isn't the goal."
Earlier in the week I spoke with the Secretary of State Condoleezza Rice. Other administration officials thought that all of these allies, all of these countries, China, Russia, South Korea, Japan, the United States, were on the same page. Clearly they are not.
BENNETT: Yes, looking for hope in all the wrong places. And in China, this came up. We were talking a lot about this on the radio. People said there is this complicated web. Don't we always need to look at the spider in this situation which is China. And in the long term, China may prove to be a very serious problem. Alliances with China are very tricky, can't be relied on.
BLITZER: Because it's not only China but Russia apparently doesn't want to go as far as the United States. And even some suggesting South Korea our ally is getting a little weak kneed.
BENNETT: Look, the president is trying to do what he's been advised to do interestingly as you know by Democrats, which is get more countries involved, be more bilateral, have more countries trilateral, six nations, whatever. And when you do, you're going to be disappointed because these people are going to often leave you at the altar.
BLITZER: Moderate Republican Congressman Chris Shays, you've known him for many years. He's in for the fight of his life against Diane Ferrell right now in his district in Connecticut. He said this yesterday, John Roberts reported it. "I know the speaker didn't go over a bridge and leave a young person in the water, and then have a press conference the next day. Dennis Hastert didn't kill anybody." A reference to Ted Kennedy in Chappaquiddick. Did he go too far in reviving Chappaquiddick in these final weeks before the election?
BENNETT: I have to say no. I mean it was quite a striking comment. But the Democrats are pushing this thing too far and I think they better pull back. Do they really want to stand for the proposition that when it comes to the sexual predation of young people in Washington, the Republican Party is worse than they are?
If you look at the whole record over the years, they don't want to stand for that. Republicans got rid of their horrible transgressor here Mark Foley. He is gone, finished. He resigned but the posse was one minute behind him and that's a lot more than you can say for the Democrats.
BLITZER: We'll leave it there. Bill Bennett thanks for coming in. And as we head into the crucial midterm elections, stay up to date with our CNN political ticker. The daily news service on CNN.com gives you an inside view of the day's political stories. See for yourself. Easy way to do it, go to CNN.com/ticker. Still to come, North and South Korean troops in a tense face-off in the demilitarized zone. Our Zain Verjee was recently there. We're going to give you her report.
Plus, North Korea's smuggling network. We've been speaking about it, we're going to show you how the country makes literally hundreds of millions of dollars each year. Stay with us.
(COMMERCIAL BREAK)
BLITZER: A flurry of diplomacy in the wake of North Korea's alleged nuclear test, including U.S. efforts to get a UN Security Council resolution passed by tomorrow. The crisis is heightening tension along the border between North and South Korea. We have complete coverage for you. CNN's Brian Todd is standing by. But let's begin with CNN's Zain Verjee. She was recently along the DMZ between North and South Korea -- Zain.
VERJEE: Wolf, there are more than a million men with heavy weapons on both sides of the DMZ ready to fight. The DMZ is a buffer zone about two-and-a-half miles wide that essentially splits the Korean Peninsula. There are plenty of rules for troops and visitors at the DMZ and breaking them could be dangerous.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): North Korean soldiers guarding their side of the DMZ and each other. The story goes, if one makes a run for freedom to the south, the other's job, shoot him. A third soldier faces his nation squarely. And forms a triangle to warn potential defectors.
A major with the UN command says there's no way to know their orders. But he says things did change in 1984 after a Soviet visitor to the north made a dash for it. Since then, the guards on the front line keep a watchful eye on each other and their visitors.
UNIDENTIFIED MALE: They'll post security on their side when they have guests that come down.
VERJEE: The South Koreans have their rituals too. They've got to be tall, at least 6 foot, dark shades for effect. Some boast black belts. And all pose head on in the Korean martial arts stance of Taekwon Do. We follow orders here to.
UNIDENTIFIED MALE: There's a certain dress code and there's certain regulations.
VERJEE: No jeans, no shorts, no sandals, no skin. And no pointing or gesturing. It could give the other side a propaganda photo op. Tight security, high tension. From the moment we arrive to checkpoint bravo. For anyone entering the demilitarized zone, there are a lot of protocols to follow. Every car has to have a flag. We've been seeing cars with blue flags or yellow flags. Our arm bands have to be on people to have them identified. As you can see we have a blue media arm band. Unarmed troops wear yellow MP badges if they are carrying a gun.
UNIDENTIFIED MALE: And everything that we do is designed to ensure that there's not a resumption of hostilities.
VERJEE: And so the show goes on. Each side following the careful script with bravado and gusto. One wrong move, and the bullets could fly.
(END VIDEOTAPE)
VERJEE: North and South Korea signed an armistice back in 1953, but Wolf the two countries are still officially at war.
BLITZER: Zain, excellent report, thanks very much. Zain's going to have more reporting on her recent visit to the border between North and South Korea. That's coming up tomorrow. And one of the U.S. goals of sanctions in addition to clamping down on North Korea's nuclear program is to try to curtail what experts say is a vast smuggling network that includes everything from missiles to cigarettes. CNN's Brian Todd is joining us now with that part of the story. Brian?
BRIAN TODD, CNN CORRESPONDENT: Wolf, despite recent efforts by the U.S. and others to crack down on North Korea's smuggling network, experts say Kim Jong-il's regime still makes millions of dollars from those shipments.
(BEGIN VIDEOTAPE)
TODD (voice-over): December 2002, U.S. and Spanish forces seize a North Korean freighter in the Indian Ocean. Hidden beneath sacks of cement, scud missiles bound for Yemen. Four months later the North Korean vessel Pong Sue intercepted off Australia carrying 150 kilograms of heroin. Windows into a smuggling network that experts say raises hundreds of millions of dollars a year helping underwrite North Korea's nuclear program.
ASHTON CARTER, FORMER ASST. DEFENSE SECRETARY: They have sold ballistic missiles we know to Iran, Pakistan and marketed them to others. So they're always trying to find some way to raise hard currency.
TODD: Analysts say North Korea's primary missile shipping route rammed through the South China Sea, through the ports of Singapore and Dubai. Then up to Iran and Pakistan until Dubai, Singapore and western navies crack down. Now analysts point to smuggling routes across the border into China. Then by land, or air to the Middle East. But the contraband can also travel under water.
MICHAEL GREEN, FORMER NATL. SECURITY COUNCIL MEMBER: The semi submergibles they use were designed for inserting special operations forces into South Korea and Japan, but they now use them primarily to drop off methamphetamines in the ocean near Japan with homing beacons on them. Then their counterparts in Japan often the Yakaza, the gangsters, will come out in shipping boats, pick them up and then sell them to Japanese kids.
TODD: An official at the Japanese embassy in Washington says Japanese police have investigated significant shipments of methamphetamine believed to have come from North Korea and have arrested members of Japanese crime gangs. Experts say Kim Jong-il also uses his bureaucratic and military machinery to sell cigarettes, counterfeit American dollars, even fake Viagra and a ripped-off version of an Asian sexual enhancement concoction called reindeer antler.
(END VIDEOTAPE)
TODD: But so far no tangible evidence that North Korea has exported any nuclear technology. For the record, Pakistani officials deny ever buying missiles from North Korea. We pressed an Iranian official at the United Nations on that account and he did not comment. We also called North Korea's mission to the UN for a response to charges of smuggling. They did not return our calls -- Wolf.
BLITZER: All right Brian, thank you. Brian Todd reporting.
Up ahead, a warning sign for people who own homes. Plus, teasing 12,000. The closing bell wraps up another heady day on Wall Street. How high can the Dow go on its record run up.
And later, running for reelection, the Governor Arnold Schwarzenegger goes back to where it all began. Now his "Tonight Show" appearance has his opponent hopping mad. It's an election story you are going to want to see. That's coming up, 7:00 p.m. eastern, right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: A record day on Wall Street with the Dow Jones average is now within striking distance of 12,000. CNN's Ali Velshi is in New York, he has the details. Hi Ali.
(STOCK MARKET REPORT)
BLITZER: Love reading that beige book. Whenever I have even trouble sleeping, pick up the beige book. Fascinating material.
VELSHI: No kidding.
BLITZER: Ali thanks very much. The Tour de France winner Floyd Landis is again fighting back against doping charges after repeatedly denying the accusations this summer. Landis is now going online to make his case. What does he have to say?
For some answers let's turn once again to our internet reporter Jacki Schechner -- Jacki.
JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, Floyd Landis wants to be completely transparent as he prepares to appeal the U.S. anti- doping agency decision to charge him with a doping violation. And in that vein, he's decided to put an entire defense online at his Web site at floydlandis.com. This is a 26 page PowerPoint presentation prepared by this man, Arnie Baker, who's a long time adviser and coach to Floyd Landis, he's also a retired doctor.
In his presentation Baker asserts that Landis' urine samples were contaminated and degraded. He also says that the French lab that handled them confused up some of them labeling. Now a review board has already seen much of this evidence and decided that there was enough there to go ahead and charge Landis. His hearing is expected in early 2007 -- Wolf.
BLITZER: Thank you Jacki for that. Up next, Jack Cafferty and his question of the hour. When it comes to Iraq, what are we doing? Your e-mail and Jack when we come back.
(COMMERCIAL BREAK)
BLITZER: Check back with Jack Cafferty. Jack?
JACK CAFFERTY: U.S. military officials are now admitting that violence in Iraq is worse than it has ever been. Seventeen more Iraqis killed in Baghdad today including nine who were shot to death in the offices of a Sunni satellite TV station. Meantime police have found 400 more bodies showing signs of torture in just the first 12 days of this month. All in the capital city of Baghdad alone. So the question we ask is when it comes to Iraq, what are we doing? We have a lot of mail.
Rob in Minneapolis, "It's obvious what we're doing there, we're staying the course even if it's an obviously misguided one. Rather than have the terrorists come over here and kill Americans, we send our Americans over there to get killed." Bob in Morris Plaines, New Jersey, "When we had our civil war, nobody tinkered with it. Remove our troops to the borders and prevent outside troublemakers and then let them "fight it out". Religious issues cannot be politically solved. I don't think most Americans care if they kill each other. George, it's time to listen to your supporters."
Pat writes from New York, "What are we doing in Iraq? We're catering to the misplaced instincts of a disturbed man and his minions. I'm talking about Bush and I'm too outraged to be polite here."
Charlie writes from New York, "That's a great question. My fear is that the great brains who lead this country are sitting around the Oval Office asking themselves the same question because clearly, they have no clue!"
Kennon in Clearwater, Florida, "Jack, I really mean this. Is it possible that somewhere in your daily thoughts that possibly, just possibly, you can find one item that you see as a "positive" in this country?" Kennon, I see many things in this country that are positive, our foreign policy doesn't have to be among them.
Don in Ukiah, California, "Jack, what are we doing in Iraq, politically, we are showing our stupidity. Militarily we are showing our strength, determination and unquestioned ability. You guys at CNN are doing as much of the right thing as anyone can. You're bringing it into America's living rooms."
Thanks for that Don, our pleasure. If you didn't see your e-mail here you can go to CNN.com/CaffertyFile, we post some more of these online. As I mentioned, I got a lot of mail on that question -- Wolf.
BLITZER: And next week from tonight Jack, you're going to have a special at 7:00 p.m. Eastern. Give us 10 seconds.
CAFFERTY: Broken government. We're going to take a look at immigration, the White House, Congress and e-voting, among other things. Four areas where we have some serious problems. See what can be done about it. We'll read your e-mails, you can send us home videos, just keep your clothes on.
BLITZER: We'll be watching Jack. Thanks very much. See you back here in an hour. We're in THE SITUATION ROOM, weekday afternoons, 4:00 to 6:00, back at 7:00 p.m. Let's go to Kitty Pilgrim, she's sitting in for Lou Dobbs -- Kitty.
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