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The Situation Room

Iraqi Insurgents Offer Deal; Interview with David Kuo

Aired October 16, 2006 - 19:00   ET

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

WOLF BLITZER, CNN ANCHOR: Thanks very much, Kitty. And to our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Standing by CNN reporters across the United States and around the world to bring you tonight's top stories.
Happening now, it's 2:00 a.m. in Baghdad, are Iraq insurgents offering a way out, a bit extraordinary carnage and extraordinary message with exclusive video. It's 7:00 p.m. here in Washington. Does the Bush administration secretly have a negative attitude toward Christian conservatives? Why one former faith-based official in the White House is losing faith with partisan politics.

And, senators in a showdown, John McCain versus Hillary Clinton -- is the race for the White House getting nasty before it really gets going.

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

We begin with a developing story, a somber new milestone today for the war in Iraq. The death toll for coalition forces reached and then passed 3,000 as the U.S. military announce the death of seven more American troops and four Iraqis. Dozens more deaths were recorded as the slaughter in the streets continues with no end in sight.

President Bush today phoned Iraq's prime minister with a message of reassurance, but Iraq's insurgents are delivering a message of their own. CNN's Michael Ware is joining us from Baghdad. He'll be there in a moment, but first let's go to Pentagon for all the latest developments -- our senior Pentagon correspondent Jamie McIntyre -- Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Wolf, all the talk in Washington about possibly changing the U.S. strategy in Iraq is apparently making Iraq's new president a little nervous.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): With the alarming rise in the rate of U.S. casualties in Iraq, 55 dead so far this month and almost three- times that many Americans seriously wounded and with Iraqi casualties running even higher the calls for change are getting louder from President Bush's own party.

SEN. CHUCK HAGEL (R), NEBRASKA: We clearly need a new strategy. Obviously by any measurement, we're in a lot of trouble in Iraq.

MCINTYRE: The White House says President Bush called Iraq's prime minister, Nouri al-Maliki, who was troubled by rumors the U.S. might be losing patience with him and could impose a timeline for bringing the violence under control.

TONY SNOW, WHITE HOUSE PRESS SECRETARY: The prime minister also wanted to make it clear, for instance that talk of you know, giving timetables or expiration dates or whatever to the government were not only undermining the government, but also inspiring terrorists, is the term he used.

MCINTYRE: The White House says President Bush reassured Maliki he has the full support of the U.S. and in return Maliki dismissed the notion of partition of Iraq. But many experts question whether Maliki in office for only four months has the political clout to unite the Sunni and Shia factions.

LAWRENCE KORB, CENTER FOR AMERICAN PROGRESS: The situation in Iraq is getting worst because the unity government -- so-called unity government -- is really not a unity government. Prime Minister Maliki has not taken the steps that he needs to do to disband the militias or to create a sense of a unified Iraq.

(END VIDEOTAPE)

MCINTYRE: There's a lot of speculation in Washington that the Iraq's study group, that independent commission headed by former secretary of state, James Baker, may recommend a fazed withdrawal of U.S. troops after the midterm elections. Today White House spokesman Tony Snow emphasized that that group's recommendations, a bipartisan group, would be advisory only. Although they said they would listen very carefully.

BLITZER: Jamie, stand by for a moment. Bombings and shootings claimed dozens more lives today in Iraq and in Baghdad all alone police found at least 26 more bodies riddled with bullets, but amid all the carnage, are Iraqi insurgents now offering to talk with U.S. officials.

CNN's Michael Ware has our exclusive report from the Iraqi capital. Michael, you have been in correspondence, shall we say, with a leader of these Iraqi Sunni insurgents he responded in an extraordinary way. Tell our viewers what has happened.

MICHAEL WARE, CNN CORRESPONDENT: Well, Wolf, the Islamic army of Iraq is part of a -- one of the largest and most powerful factions within the Sunni insurgency. These are the people who are responsible for the bulk of the day-to-day attacks against U.S. forces from roadside bombs to deadly sniper attacks to all manner of ambush and roadside bombings.

These people offered us an opportunity to forward questions to their leadership, which we did in writing. They responded to those questions in video taped answers, putting forward their official spokesman, Ibrahim al-Shimmari, to answer and to respond to CNN. And what he outlines is fascinating. He renews the insurgency's long running offer to negotiate with U.S. forces.

We have seen covert negotiations under way since the beginning of last year. We've seen U.S. officials go public with them at the end of last year. It's interesting that now they're renewing that offer so publicly, so directly -- Wolf.

BLITZER: Michael, are these the same insurgents who were responsible for blowing up the Samarra mosque earlier in the year, which has caused at least in part this escalation, this explosion of violence?

WARE: No, Wolf, this is not believed to be that group. That group is believed to be al Qaeda in Iraq, or one of its affiliates. This group represents a large block of homegrown Iraqi insurgents. The Iraq insurgency falls into two big camps, Wolf, one of a nationalist and former Baathists, the other are Iraqi Islamists, more moderate than al Qaeda and more politically motivated and focused solely on Iraq as this spokesman from the Islamic army makes very clear.

He goes out of his way to assure the people of Iraq that we're no threat to U.S. homeland security. We just want to free our country. So that's markedly different from the people who blew up the Golden Dome in February, which essentially was al Qaeda -- Wolf.

BLITZER: And that was an attack on the Shia. Michael, what about the tortured bodies that are popping up over Baghdad and other Iraqi cities? Horrible, horrible gruesome details are being told. The bodies are found -- clearly these people were first tortured. They used electric drills to torture these people. Their -- various parts of their body were severed. Which group is believed to be responsible for the mutilation, the torture, the random assaults as you will on these Shias?

WARE: Well that's occurring on both sides, Wolf. Now, as it was explained to me recently by one Shia here in Baghdad, the Sunnis led by Zarqawi and the extremist al Qaeda fringe of the Sunni insurgency, the hard-line Islamists have provoked this civil war or this sectarian violence. They went out targeting the Shia in particularly provocative ways.

Suicide car bombs into marketplaces and places of worship and the beheading of Shia, so the Shia have responded in kind. And now that they have entered the ranks of the government it's the security forces who are operating or assisting many of these death squads. Now it's the Shia who are using the drills and who are doing the torturing. The Shia here in Baghdad explain that as the Sunnis attack us with mutilated beheadings we must respond in kind and send a strong message back -- Wolf.

BLITZER: All right, Michael, stand by for a moment. Jamie McIntyre is still at the Pentagon for us. Jamie, what's the likely response that U.S. military or the political leadership would give to these Iraqi Sunni insurgents who are now effectively reaching out in this dramatic video that Michael has, asking for direct negotiations if you will?

MCINTYRE: Well you know Wolf, it's a tricky situation. On the one hand, the U.S. has a clear policy it doesn't negotiate with terrorists. On the other hand, the U.S. has a policy that it needs to bring the Sunni factions into the government and give them a reason to believe that they have a future. So, while they don't negotiate with terrorists, there have been -- there's been a lot of contact over the years between the U.S. military and the insurgents as Michael Ware knows.

He reported on this last year. But one thing has changed now with the elected Iraqi government. That the U.S. military believes that any negotiation with perhaps not the insurgents who have blood on their hands, but others to try to end this fighting has got to be something that's done by the Iraqi government not the U.S. military. And as part of that, then the U.S. military would be able to withdraw as the violence goes down.

BLITZER: Jamie McIntyre and Michael Ware, thanks to both of you. U.S. intelligence today made it official there were radioactive materials in the air after that test blast. As far as nuclear explosions go, this was an apparently a relatively small one but it was nuclear. Now the Bush administration is setting out to try to rally its allies as United Nations sanctions kick in.

Let's turn to our White House correspondent Suzanne Malveaux. First of all, Suzanne, are there any indications out there, that the North Koreans may be planning a second nuclear test?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, there are some indications. Our own CNN producer, Pam Benson (ph), says that essentially that some of the U.S. spy satellites have picked up activity at North Korea's nuclear testing site, but that also a U.S. intelligence source says that there's no evidence that a test is imminent.

But even the possibility, Wolf, of a second test, along with this confirmation that North Korea has become a nuclear power really has made the stakes much, much higher for the Bush administration to convince North Korea to comply. We will see.

Secretary of State Condoleezza Rice leaving for the region tomorrow -- she's going to visit with her counterparts in Japan, South Korea and China and the critical test of course for Secretary Rice and the Bush administration is to convince those members of the U.N. Security Council that voted for these tough sanctions over the weekend essentially to follow through. And already there are indications from the Chinese that they're bulking at the interdicting of cargo entering or leaving North Korea, saying they are worried that this may only escalate the tensions in the region. Secretary Rice has to convince them that it is worth it to still do it anyway.

BLITZER: Suzanne Malveaux at the White House -- thanks Suzanne very much. And if in fact the North Koreans go ahead with a second nuclear test, presumably it would be because the first one in their opinion wasn't large enough. They would want to have a bigger one, more than one kiloton. We're going to have more on this story coming up.

Jack Cafferty off today -- he's working on his special that airs here Thursday nigh. He'll be back in THE SITUATION ROOM tomorrow.

Still to come tonight, did the Bush administration try to win over Christian supporters simply to win elections? A former White House official says some people in the White House actually think some Christian leaders are -- and I'm quoting now -- "nuts". I'll speak with the man making those claims.

Also, is the congressional page scandal on Capitol Hill right now widening in the Mark Foley fiasco. One congressman drops a hint that there may be more people involved. We'll have the latest for you. That's coming up as well.

And Senators Hillary Clinton and John McCain recently sparred over North Korea. Now there's controversy over comments a Clinton aide reportedly made about the Arizona Republican's time in Vietnam when he was a prisoner of war.

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

(COMMERCIAL BREAK)

BLITZER: Tonight a new October surprise in the battle for Congress -- federal agents conducted raids today in an investigation of House Republican Congressman Curt Weldon of Pennsylvania. At issue -- did Weldon use his position to steer lucrative contracts to his daughter's lobbying firm. Weldon strongly denies any wrongdoing and he's blaming Democrats for the probe three weeks before America votes.

Let's go to our congressional correspondent Dana Bash. She's on Capitol Hill -- Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Wolf, because that information became public, apparently federal officials were worried about protecting potential evidence, so they raided about a half a dozen sites from Philadelphia down to Jacksonville, Florida.

(BEGIN VIDEOTAPE)

BASH (voice-over): The FBI conducted six searches Monday at businesses and residences related to the Curt Weldon probe a senior law enforcement official tells CNN including the Philadelphia home of Karen Weldon, the congressman's daughter. Talking to reporters after the raids, Weldon insisted neither he nor his daughter did anything wrong.

REP. CURT WELDON (R), PENNSYLVANIA: I would absolutely never use my position to help anyone in an unusual way. And my daughter would be -- my kids don't need my help. My kids are successful. They're talented. They do a good job.

BASH: The investigation appears to be focused on whether the congressman helped two Russian companies and two Serbian brothers become clients of his daughter's lobbying firm, winning contracts worth $1 million a year, according to McClatchey newspapers. Weldon travels to Russia frequently and is a vocal advocate for strong U.S./Russian relations.

One source with knowledge of the inquiry tells CNN the investigation has been under way for more than six months. The Pennsylvania Republican, a 20-year veteran of the House, was already in a neck-in-neck race to keep his seat and acknowledged this investigation will hurt him. But he calls the timing, three weeks before Election Day, suspect.

WELDON: Assuming the Democrats win control of the Congress, I think it doesn't take a rocket scientist to figure out that this district could swing control of the Congress.

BASH: Democrats have been using questions about Weldon helping his daughter as a political weapon against him, mailing this flyer to voters in Weldon's district last week, before the FBI investigation became public. But Weldon also blamed Melanie Sloan, the head of the liberal leading watchdog group for spurring the issue. Sloan did file a complaint with the FBI, but that was two and a half years ago when questions were first raised by the "Los Angeles Times".

MELANIE SLOAN, CITIZENS FOR RESPONSIBILITY & ETHICS IN WASH.: We don't control what the Justice Department does. The Justice Department is investigating Curt Weldon and I can't force the Justice Department to do anything.

(END VIDEOTAPE)

BASH: Now, for all of his lashing out at Democrats, Curt Weldon was forced under questioning to concede of course that the Justice Department is run by a Republican administration. Also Weldon said quote, "I'm not stupid. I may have offended people. I have been known to do that" -- Wolf.

BLITZER: Dana, thank you -- Dana Bash on the Hill.

Also on Capitol Hill tonight, a new hint the investigation into the Mark Foley congressional page scandal may be widening. It comes from Congressman Dale Kildee of Michigan, the only Democrat on the House Page Board. He testified today before the House Ethics Panel looking into Foley's clearly inappropriate online messages to teenage boys. Later Kildee spoke to reporters and noted that the Page Board had a conference call meeting earlier today that focused on allegations not related to Foley. Take a listen to this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What was the one today about? Can you tell us, the conference call?

REP. DALE KILDEE (D), MICHIGAN: It was about other allegations and I would like to leave it at that.

UNIDENTIFIED FEMALE: Regarding Foley or other members?

KILDEE: (INAUDIBLE) not about Mr. Foley.

UNIDENTIFIED FEMALE: Other members?

KILDEE: Not about Mr. Foley.

UNIDENTIFIED MALE: The likely news, this thing's going to expand. It's going to go beyond Foley.

KILDEE: I'm not sure. You know there's only been allegations made -- I want to make that clear -- only allegations. And, I would like to leave it at that -- only allegations. There's nothing more than that right now. It's not -- certainly not a broad net at all.

(END VIDEO CLIP)

BLITZER: Potentially explosive material in the Foley fiasco, at least the fallout from that. We're digging on this story. We're trying to learn more about those other allegations the congressman referred to, who may be involved, what those allegations are. We're going to bring you any details as we get them. Our team on Capitol Hill working this story tonight here in THE SITUATION ROOM.

Meanwhile, the Senate Democratic leader is taking new action tonight in response to questions about his profits on a land deal. Harry Reid in Nevada announced today he's amending his ethics reports to Congress to more fully account for that 2004 sale. The move comes after The Associated Press reported Reid collected more than $1 million for the Las Vegas property, which AP says Reid had not owned for more than three years.

Reid disputes the AP report, strongly denies any wrongdoing. Still to come tonight here in THE SITUATION ROOM, did the Bush administration try to win over its Christian supporters to win elections. A former Bush administration official says yes. I'll speak to him about his controversial claims in a new bombshell book.

And picking up the pieces -- after Hawaii shook with a powerful earthquake, one man got the shock of his life, he was filming the damage just when an aftershock hit. This is video you're going to want to see.

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

(COMMERCIAL BREAK)

BLITZER: Zain is off today. She's getting ready to travel with the Secretary of State Condoleezza Rice to Asia in the coming days. She'll be reporting from the road. Carol Costello is joining us now with a quick look at some other important stories making news. Welcome, Carol.

CAROL COSTELLO, CNN ANCHOR: Thanks, Wolf. Out of the hospital, back to his routine, Gerald Ford has been released from the hospital. In a statement a spokesman says Ford will now resume normal activity. The 93-year-old former president had gone into the hospital last week for medical tests. Ford has been in and out of the hospital several times in the past year.

In the Saddam Hussein trial, gunmen killed the brother of the man arguing the case against Hussein. The victim was shot and killed right in front of his wife at his Baghdad home. In the meantime, Hussein has written an open letter, urging Iraqis to forgive their American enemies and urging Shiites and Sunnis to stop killing each other. In the letter Hussein says quote, "The hour of liberation is at hand."

Two big ships collide on the Mississippi River. Officials say one freighter struck another that was anchored west of New Orleans. Officials say the collision knocked a huge hole in the side of the anchored ship. The vessel not believed to be taking on water and so far there are no reported injuries.

And Madonna and child -- a 1-year-old African orphan whose most recent home was an impoverished orphanage appears to be on his way to a life of luxury. Today representatives for Madonna whisked the boy away from Malawi. A publicist says Madonna hopes to adopt him and that Malawi has given Madonna and her husband temporary custody. Some groups are concerned that Madonna's celebrity status helped her bypass adoption rules. Malawi law bans adoptions by non-residents.

That's a look at the headlines. Back to you, Wolf.

BLITZER: Carol, thank you -- Carol Costello will be back later this hour.

Just ahead, North Korea and Iraq -- will those issues influence voters at the polls. We have some new poll numbers that are just out tonight. Our senior political analyst, Bill Schneider, is standing by with details. You might be surprised by some of these numbers.

Plus, what does the Bush White House really think of Christian conservatives. I'll ask a former White House insider, David Kuo, the author of a controversial new book.

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

(COMMERCIAL BREAK)

BLITZER: To our viewers, you're in THE SITUATION ROOM where new pictures and information are arriving all the time. Happening now, on a videotape obtained by CNN one of Iraq's insurgent groups says it's interested in negotiating with U.S. forces. Speaker lays out a set of conditions, saying it could end the group's ongoing insurgency.

Investigating Republican Congressman Curt Weldon -- today officials searched the home of the lawmaker's daughter and other sites in Pennsylvania and Florida. Officials says the Pennsylvania lawmaker is being investigated into whether or not he used his position in Congress to help his daughter's lobbying firm get lucrative contracts. Weldon denies any wrongdoing.

The Pentagon says it will resume its policy of requiring military personnel to be vaccinated against anthrax. Officials say that will begin within the next two months and will be mostly limited to units working on homeland, bioterrorism and forces in South Korea.

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

New evidence tonight of an axis of anxiety -- the American people are weighing in on both North Korea, the nuclear threat from North Korea, as well as the war in Iraq. Our senior political analyst Bill Schneider joining us now with some brand new CNN poll numbers -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, our new poll shows that the public's view of the North Korea situation is heavily influenced by their view of Iraq.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): Leading Republicans now acknowledge that the situation in Iraq is bad.

SEN. JOHN WARNER (R), VIRGINIA: It seems to me that the situation is simply drifting sidewise.

SEN. CHUCK HAGEL (R), NEBRASKA: We clearly need a new strategy, obviously, by any measurement. We're in a lot of trouble in Iraq.

SCHNEIDER: Nearly two-thirds of Americans now say they oppose the war in a new CNN poll conducted the Opinion Research Corporation. That includes a majority of men and an overwhelming 70 percent of women. Pessimism about Iraq is contributing to a continuing deterioration in President Bush's support. Sixty-one percent now disapprove of Bush's job as president, his worst rating ever. The president's rating on Iraq is even lower, 64 percent disapprove.

But Mr. Bush's ratings on North Korea are not so bad, 47 to 41 percent approve. The president's approach to North Korea has been less bellicose.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: So my administration decided to take a new approach. We brought together other nations in the region in an effort to resolve the situation through multilateral diplomacy.

SCHNEIDER: Sixty percent of Americans believe the situation with North Korea can be resolved using diplomacy and economic sanctions. More than 70 percent believed that three years ago.

Suppose diplomacy and sanctions fail, would the public favor taking military action against North Korea? Three years ago, Americans were divided. Now, a majority opposes military action. Why? Iraq. More than 70 percent of Americans believe the war in Iraq is making it harder for the United States to deal with North Korea.

(END VIDEOTAPE)

SCHNEIDER (on camera): We also have been hearing a debate over whether the Bush administration's policies or the Clinton administration's policies are more to blame for the problems with North Korea. Fifty-three percent of Americans say they blame the Bush administration a great deal or a moderate amount. Forty-three percent blame the Clinton administration -- Wolf.

BLITZER: Bill Schneider reporting for us.

Thank you, Bill.

A new book is raising questions about the Bush administration's true feelings involving conservative Christians, even as Republicans are certainly counting on their votes.

David Kuo served as deputy director of the Office of Faith-based and Community Initiatives in the Bush White House. He's the author of a new book entitled "Tempting Faith: an Inside Story of Political Seduction".

David, thanks very much for coming in.

DAVID KUO, AUTHOR, "TEMPTING FAITH": It's good to be here.

BLITZER: Your book is generating lots of commotion out there. Because, among other things, you write this. On page 229, you say, "National Christian leaders received hugs and smiles in person and then were dismissed behind their backs and described as "ridiculous", "Out of control", and just plain"goofy"."

Who specifically in the White House was uttering such words?

KUO: Wolf, I have written a very personal, political and spiritual memoir. And as such, I made the decisions to not name names. I don't want to embarrass people. I didn't want to embarrass Christian leaders who had things said about them. I didn't want to embarrass people on the staff who said it. But it goes without saying that it is absolutely true. And I think, you know, it's been interesting watching the media because, so many people have gotten up there on Capitol Hill, who have been on Capitol Hill, reporters, or anybody, that this idea that Republicans, you know, roll their eyes at Christian conservatives, it's kind of like, yes, OK, that's absolutely true. It's interesting though, because...

BLITZER: Well, let me press you because it raises enormously significant questions, especially among conservative Christians, who are wondering if you're telling the truth or if you're making this up, because there have been a lot of denials, as you well know. Specifically, people like the Reverend Pat Robertson. What did they think about him inside the White House?

KUO: Again, Wolf. My point in writing this book, even though there are obviously things in like this that are controversial, was a spiritual perspective.

BLITZER: The charge you're making, which is a serious charge, is they're a bunch of hypocrites in the White House. They simply wanted the conservative right to vote for Republicans. They wanted to fund- raise among Republicans, but their heart really wasn't there. The Focus on the Family issue, the statement on Friday, "The release of this book criticizing the Bush administration's handling of its faith-based initiative program seems to represent little more than a mix of sour grapes and political timing."

I want you to respond to that.

KUO: Well, great. I want to -- if I missed something here, tell me what I've missed. But A, anybody who reads the book, anybody who knows me, that I don't have sour grapes about this. You know, my concern about this is the spiritual concern, Wolf. My concern is that Christians sort of have this sense, that Christian political leaders love them, adore them. And President Bush is sort of a pastor in chief.

But what everyone needs to know and understand is that Christians are viewed as simply, only another constituency group. They are the most important constituency group in the Republican Party right, but that's it. That's it. That's what people care about. People care about their votes. People don't care...

BLITZER: The charge you're making that these guys, who I assume from the president, Karl Rove, and other top officials in White House, you're making the charge they're a bunch hypocrites?

KUO: Wolf, I'm making a spiritual point to Christians about politics. I'm saying, before you invest so much of your souls, so much of your lives in politics, understand how you are viewed. I think that it's important for Evangelical Christians to take a temporary step back from politics, to fast, you know, fasting is a very old...

BLITZER: And to stay away from politics. That's what you're recommending. Let me read also from the book "Tempting Faith". You write this:

"George W. Bush loves Jesus. He is a good man. But he is a politician... If the faith-based initiative was teaching me anything, it was about the president's capacity to care about perception more than reality. He wanted it look good. He cared less about it being good."

All right. Explain what you mean there.

KUO: That's exactly right. George W. Bush is a man of deep faith. . He's a man of tremendous empathy for the poor. He is a man who cares about people. And you know, it's why the stories have been out there, about, you know, how moving it is, how people are moved when he comforts those people who have lost others, from 9/11 to Iraq.

President Bush is head of the GOP. He is head of the government, he is politician. His job is to expand his power, his job is to expand his party's power. And he makes decisions, he makes choices about what he's going to use, what he's going to emphasize. And his staff understands that, and his staff understands that Christian conservatives are very important and are very easy, frankly, to manipulate.

One of the things I write about in the book is I cite Chuck Colson from something that he wrote about his time in White House when he was there in the early 1970s. And he was the one...

BLITZER: In the Nixon administration?

KUO: Yes, sorry. In the Nixon administration. and he was in charge of trying to get Republican or conservative Christians to do anything. And he said of all of the groups he had to deal with, they were the easiest of all groups to sort of roll over.

BLITZER: Here's what Pat Robertson said in reacting to your book:

"I find it hard to believe again that someone like Karl Rove who depends so terrifically on what he calls "the base"... that he would behind the scenes make snide remarks. I just doesn't compute..."

Did Karl Rove make snide remarks about evangelical Christians that you heard, that you were an eyewitness to?

KUO: No. And I never say that in the book, that Karl said that. I mean, I never say about that Karl. And I know that there have been media reports said it was about Karl. And I simply never said that in the book. What Dr. Robertson said, however, is untrue if you, you know, expand it to the White House as a whole, if you expand it to the people that worked there.

BLITZER: What about the notion that -- in the book you spoke about Karl Rove eye-rolling when he was talking about these people?

KUO: I don't think I specifically say that Karl Rove eye-rolled. I said I think lots did eye-roll, and that's true.

BLITZER: Was Karl Rove one of them?

KUO: No. I never saw it from Karl. I never did. I think that there have been a lot of people wanted to see that and somehow make that more powerful. But, I think the point is absolutely true. And that is that it was his staff who did that. I was the White House that made these points. And it's important, for so many reasons -- again it is important for the spiritual terms that people understand. Dr. Robertson needs to know that actually, it's true, that there was this sort of treatment. But again, from my perspective in writing the book and talking about the book, I wanted Christians to know that, to understand that.

BLITZER: Here's what Tony Snow, the White House press secretary, said on Friday when asked about your book.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: When David Kuo left the White House, he sent the president a very warm letter talking about how wonderful it was. He said 2 1/2 years later, after joining the White House, I'm proud as all of the initiative has accomplished.

(END VIDEO CLIP)

BLITZER: Is Tony Snow right?

KUO: Yes. And that's -- if you read the entirety of the letter, I say exactly that, but I also say I am proud of the initiative has accomplished. I didn't -- it's important to notice I didn't say, well all that we hadn't accomplished. I didn't say, all of the promises that hadn't been fulfilled. And if you read the letter as whole, that's point.

I have wonderful letters from Jim Tooey (ph) and Karl Rove, and Andy Card, you know, saying the most wonderful and glowing things about. It's not surprising in a resignation letter that there are warm feelings. I don't have hard feelings towards them. I think it is important, though, for Christians to understand the point about Christians in politics. I think it's also important, it's an important informative point for Americans in general, about how the White House dealt with the whole faith-based initiative, which was a -- was such a central promise and such a key component of the president's image to be a different kind of Republican.

BLITZER: And you were saying it had mostly political -- a political objective as opposed to a spiritual objective. I'll read to you what your former boss Jim Tooey told our Brian Todd the other day. He says, your descriptions in the book are absolutely untrue. He says that you were not a player in that office, not the player that you describe yourself as having been.

We're almost out of time. But, do you want to briefly respond to your former boss?

KUO: It's kind of hard to say that I wasn't a player in his office when I was his deputy. I mean, it doesn't seem to make a lot of sense. But I understand Jim's frustration. And that's his frustration, that the points are simply all true.

And I think the White House's reacting so passionately now sort of proves the point. They're reacting so passionately now because they absolutely must have the Christian voters now.

BLITZER: And we'll leave at that on that point.

The book is entitled "Tempting Fate: an Inside Story of Political Seduction", the author, David Kuo.

David, thanks very much for coming into the SITUATION ROOM.

KUO: Wolf, thanks.

BLITZER: And as we head into the crucial midterm elections, stay up to date with the CNN political ticker. The daily news service on CNN.com gives you an inside view of the day's political stories. You can check it out. Go to CNN.com/ticker. Still ahead tonight, barbs flying between Hillary Rodham Clinton and John McCain, possible rivals in the race for the White House. There are new developments. McCain speaking out to CNN tonight. We're going to have those details.

Plus, we'll get the latest from Hawaii on the damage from that powerful earthquake. CNN's Chris Lawrence is on the scene.

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

(COMMERCIAL BREAK)

BLITZER: Right now residents of Hawaii are seeing just how bad things really are. They're assessing damage one day after an earthquake and aftershocks shook the islands.

CNN's Chris Lawrence joining us with more -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Wolf, we're just north of Kona, on kind of like the northeast corner -- or the northwest, I should say, corner of the island. Behind me there's a bridge down the street, that was literally underneath. They closed off this area.

Out on the road, we've seen big boulders literally falling down the mountain that the crews have had to go by, punch down into smaller rocks and then haul off the road.

We visited a school that had suffered some pretty significant damage, won't reopen until later this week, and a home that was literally burned to the ground. The actual shaking didn't damage it, but the snapped power lines set off a electrical fire, started a fire, and burned the home to the ground.

But overall, there were no major injuries, no fatalities. And with a 6.7 magnitude earthquake and several aftershocks, most people here feel that the Big Island could have come out of this a whole lot worse.

BLITZER: And thank God for that. It could have been a whole lot worse.

Chris, thanks very much.

Witness accounts, video and images of that quake are pouring into CNN. Standing by with the latest, our Internet reporter Abbi Tatton -- Abbi.

ABBI TATTON, INTERNET REPORTER: Wolf, this is video sent to CNN to CNN through iReport. This was sent in by Mein Trahn, a scientist on Big Island. He was wondering around his house in and out of all the rooms immediately after the earthquake yesterday recording the damage, when he realized it wasn't over.

(BEGIN VIDEO CLIP)

MEIN TRAN, KAMEULA, HAWAII RESIDENT: There it is again. TATTON: The shaking here that you're seeing is an aftershock that happened seven minutes after the quake, that one registering a 6.0 magnitude. and there were some fifty other aftershocks that took place.

We're seeing lots more images coming into CNN of the damage. This from Erin Baldwin (ph), who was driving as it happened yesterday. Driving to go surfing. She felt her car wobbling and swaying. Then the road cracked just nearby her. She recorded what she called irreparable damage done to a historic church in Kahula (ph) on Big Island. And she was also talking about those boulders that we also heard Chris Lawrence talking about, which we're seeing many, many pictures of.

These from Steven Aytell (ph). He found himself navigating roads like this on his way home -- Wolf.

BLITZER: Abbi, thank you.

Up ahead, they're two likely leading contenders in the race for the White House. That would be Hillary Clinton and John McCain. And they're already acting rivals in what could be a testy campaign. We're going to have details.

Plus when you vote in '08, could it be by cell phone? We'll take a closer look at some new technology that change election day for all of us forever.

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

(COMMERCIAL BREAK)

BLITZER: The presidential election still more than two years away. Neither has officially declared their candidacy, but that's not stopping the barbs from flying between two of the best known likely contenders in 2008, Senators Hillary Clinton and John McCain.

Once again, let's go to CNN's Carol Costello. She's joining us now with details -- Carol.

CAROL COSTELLO, CNN CORRESPONDENT (on camera): It's starting to seem like 2008 is just around the corner, but you're absolutely right, Wolf. You can officially say the games have begun, John McCain versus Hillary Clinton. And guess who won the first round?

(BEGIN VIDEOTAPE)

SEN. HILLARY CLINTON, (D) NEW YORK: ... because of the failed policies of the Bush administration.

COSTELLO (voice-over): It started out fairly typical, Hillary Clinton blaming President Bush for North Korea's nukes, John McCain then blaming Bill Clinton, then it just got ugly, putting Senator Clinton on the defensive.

CLINTON: I've already responded to that, and we certainly have denounced that. It was offensive, and you know, John McCain and I have a good working relationship. And we will continue to work together whenever we can.

COSTELLO: That is called distancing yourself from a comment made by one of Clinton's aides. A comment that seemed to made light of McCain's torture when he was held captive in north Vietnam. It appeared in Maureen Dowd's column in Saturday's "New York Times", a Clinton aide quoted as saying McCain's accusations came at the bidding of the White House, and looked "... similar to the way he did on those captive tapes from Hanoi, where he recited the names of his crewmates."

Wrong move.

LARRY SABATO, UNIVERSITY OF VIRGINIA: It was a very foolish comment by the Clinton aide because it actually hit McCain where he's strongest. You never want to hit someone where they're strongest, you want to hit them where they're weakest.

COSTELLO: It was so foolish Hillary Clinton got on the phone and called John McCain to say she's sorry. The McCain camp tells us they're pleased Senator Clinton called to apologize. At the same time, they called the gap reprehensible.

But that's not all. Alluding to Bill Clinton's failure to serve in Vietnam, McCain's political adviser told CNN, "I don't expect the Clintons or their allies to know much about Vietnam."

But don't think McCain came out this with his hands spanking clean. On the "CBS Early Show", McCain responded to accusations he was playing politics, by falling into what some say is a sexist gap.

SEN. JOHN MCCAIN, (R) ARIZONA: I was responding to attacks made on President Bush by Mrs. Clinton, Senator Kerry, Senator Reid and other Democrats, which...

COSTELLO: In case you missed the gaffe, McCain refers to Senator Clinton as Mrs., and to and Clinton's male counterparts as Senator.

SABATO: It's sexist. But I don't think that'll be a major consideration on the Republican side in the nominating process. Many of the women who vote in Republican primaries are very conservative and prefer the title Mrs.

(END VIDEOTAPE)

COSTELLO (on camera): As for what Senator McCain's camp says, well, it says the Mrs. was a sign of respect, not sexism. This marks the first time both sides have attacked, and even though both sides say they've called a truce, don't expect it to last long -- Wolf.

BLITZER: All right, Carol, thanks very much.

Carol Costello reporting for us.

And there's an update, John McCain telling "CNN EN ESPANOL" just a little while ago he and Senator Clinton have patched things up.

(BEGIN VIDEO CLIP)

MCCAIN: As soon as the North Koreans tested the nuclear weapon, the Democrats attacked President Bush, and said that his policies had failed. I thought this was a time to get behind the president. There's plenty of time for criticism.

I had objected to the Clinton policy back in 1993 and '94. I had written and given speeches against the policy. So I responded, someone who works for -- with Mrs. Clinton made a stupid statement, Mrs. Clinton, I think very appropriately, called me, we talked about it and it's over. And we remain good colleagues.

(END VIDEO CLIP)

BLITZER: Let's find out what's coming up right at the top of the hour on "PAULA ZAHN NOW". That means Paula is standing by.

Hi, Paula.

PAULA ZAHN, CNN ANCHOR: Thanks, Wolf.

Coming up in just about six minutes from now, what's behind that startling insurgent videotape from Iraq making a pitch for peace talks with the U.S.

Also the latest polls just 22 days before the midterm election. Is there any good news out there for the president and his party?

And the ongoing outrage over Madonna's adoption of an African boy who's on his way to London right now. A lot of people are really upset about that. They think the Malawi government changed the laws because a celebrity was involved here. We'll talk more about that a little bit later on -- Wolf.

BLITZER: All right. Paula Zahn, sounds good. Thank you.

And still ahead here tonight, in the SITUATION ROOM, voting by cell phone. Technology could make it happen sooner rather than later. We'll dial you in in our "Welcome to the Future" report, which is next.

(COMMERCIAL BREAK)

BLITZER: With voters more closely divided than ever, there's a lot of attention on the way we vote and how technology could change it all.

CNN's Miles O'Brien has more in our "Welcome to Future" report -- Miles.

MILES O'BRIEN, CNN ANCHOR (on camera): Wolf, imagine simply logging on to the web or flipping open your cell phone to cast your vote. Some insist that is around the corner. But others say there are larger problems within our voting system that need to be addressed first.

(voice-over): MIT's Ted Selker wants to change the way America casts its votes.

TED SELKER, MIT: Registration problems account for the biggest number of lost votes. After that, polling place operations and ballot design problems are the next biggest ones.

M. O'BRIEN: Selker and his team are testing some new technologies designed to make voting easier, more efficient and yet tamper proof.

SELKER: Technology has the possibility of making the voting process better by making sure that records can't be destroyed as easily. We have computers in every step of the game.

M. O'BRIEN: And while Selker does see a future that includes online voting, he says accuracy and security must come first.

SELKER: Voting by computer, voting by phone, will be much cheaper to administer. It becomes exciting when it means we can check our work and be sure of our ballots. And until we have that under control, we have to be very careful about how we deploy this equipment.

M. O'BRIEN (on camera): Part of the problem is there are so many ways we vote in this country. It's hard to improve a such a patchwork of distinct systems. For now, we're left with one of the most complex voting systems in the world -- Wolf.

BLITZER: Miles, thank you. Interesting material.

Among my guests tomorrow here in the SITUATION ROOM, the Massachusetts governor Mitt Romney. Should we count him in in the presidential race of 2008? I'll ask him. Mitt Romney, the Republican governor, here in the SITUATION ROOM tomorrow.

Till then, thanks for joining us. Let's go to Paula in New York -- Paula.

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