Return to Transcripts main page

The Situation Room

U.S. Intelligence Spots Possible Preparations For Second Nuclear Test in North Korea; Do Insurgents In Iraq Want Talks With U.S.?; Rep. Chris Shays Makes Comments Some Feel Are Controversial; U.S. Troops On The Hunt For Insurgents In Triangle of Death;

Aired October 17, 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, it's 6:00 a.m. in North Korea, where U.S. intelligence spots possible preparations for a second nuclear test. Condoleezza Rice tries to rally the allies.

But will the North's nervous neighbors now race to build their own arms?

It's midnight in Iraq. We're with the U.S. troops as they hunt for insurgents in the notorious Triangle of Death.

But should the U.S. be talking with insurgents?

And the U.S. population now hits the 300 million mark.

Which American baby was born just as the Census clock struck the magic number?

I'm Wolf Blitzer and you're in THE SITUATION ROOM.

What will Kim Jong-il do next?

A tough new warning shows North Korea certainly not backing down today in the face of the United Nations sanctions and there are suggestions it may be stepping up preparations for another nuclear test.

Secretary of State Condoleezza Rice now on her way to Asia, hoping to persuade North Korea's neighbors to stand firm.

But is Asia standing on the brink of a new nuclear arms race?

We'll go live to our Pentagon correspondent, Barbara Starr.

She's watching all of this for us -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Wolf, at this hour, the U.S. intelligence community is very cautious about drawing any conclusions about what North Korea might be up to.

(BEGIN VIDEOTAPE)

STARR (voice-over): In Pyongyang, a lavish pro-government celebration while the world watches and waits to see if North Korea will conduct a second underground nuclear test.

DONALD RUMSFELD, SECRETARY OF DEFENSE: There is speculation that they may want to do something additional. There's also speculation they may not. So only time will tell.

STARR: U.S. spy satellites have picked up signs of activity again at several North Korea sites, according to intelligence and military officials.

The Bush administration isn't sure what it all means. At two of the sites, small structures have been put up, perhaps to keep preparations hidden. Most worrisome, U.S. officials say, the new activity resembles what happened just before the first test.

The U.S. is closely monitoring statements by senior North Korean officials and military leaders that additional nuclear tests are in the works. On North Korea television, the U.N. sanctions are now being called a declaration of war.

Intelligence analysts know anxiety is rising in China in recent days. There are worries additional tests would destabilize the region.

The U.S. believes a defiant Kim Jong-il might soon pursue a second test because the first test seems to have partially failed.

JAMES LILLEY, FORMER U.S. AMBASSADOR TO SOUTH KOREA: He's thumbing his nose at the world. He's going to do this and get his people mobilized. He's going to appeal to all of his Third World friends in Iran, Venezuela, Castro in Cuba, Bashir in Sudan. These are his people. He's saying I can stand up. This is my nuke. It's a show.

(END VIDEOTAPE)

STARR: Now, Wolf, the U.S. intelligence community believes that first test just over a week ago was a plutonium-based test. That might be important. It would indicate North Korea's entire program isn't as advanced as one once thought. They haven't been able to pursue the uranium option.

But still, as far as a second test, no one is willing to predict tonight what North Korea might do next or might not -- Wolf.

BLITZER: We'll be watching very closely Barbara.

Thanks very much.

And later this hour, Brian Todd is preparing a special report for us.

How long might it take other countries in the region to go nuclear if they want to -- Japan, Taiwan, South Korea?

Brian Todd's report. You'll want to stick around for that. You may be surprised how quickly they could build a bomb if they really want to do so.

Meanwhile to Iraq, car bombs, mortars and rockets are adding to the carnage in Baghdad today. Dozens of fresh casualties are reported there and police say they found dozens more bullet-riddled bodies on the streets of the capital.

Should the U.S. be talking with insurgents right now?

CNN's Michael Ware is joining us once again from Baghdad -- Michael, thanks very much.

You had a fascinating report on these insurgents now suggesting that they would like to enter into direct talks with the Bush administration.

Listen to the White House press secretary, Tony Snow. He responded to that earlier today.

(BEGIN VIDEO CLIP)

TONY SNOW, WHITE HOUSE PRESS SECRETARY: There are two things insurgent leaders don't want. They don't want you to know who they are and they don't want you to know where they live.

Under such circumstances, it's very difficult to have regular meetings with them. So what you really have here is a situation in which the Iraqis have their own way of communicating, sometimes through third parties. But let's reiterate, reconciliation is a key part of what the prime minister is trying to do.

(END VIDEO CLIP)

BLITZER: He's referring to the Iraqi prime minister, Nouri al- Maliki.

What do you make of that White House reaction to your exclusive reports?

MICHAEL WARE, CNN CORRESPONDENT: Well, Wolf, I mean it's a stated fact, as we've heard from the U.S. ambassador himself, Zalman Khalilzad, that the United States has had dialogues, contact, communication, back channel flows with the Sunni insurgency.

What they've been targeting from the beginning, certainly since the end of the Bremer administration and the arrival of Ambassador John Negroponte as the U.S. representative here in Baghdad, is to reach out primarily to the old Baath apparatus that Bremer's administration so rapidly dismantled after the war.

That conversation continues. However, the Baathists and the insurgents out there are disillusioned with what they see as a less than genuine U.S. response -- Wolf. BLITZER: What about Maliki, the prime minister? Is he feeling any heat from the U.S. government, the Bush administration, members of Congress to start dealing with these death squads, these militias? Or is he resisting that pressure?

WARE: Well, Wolf, obviously, all of this is conducted behind closed doors and on secure phone communications.

However, I think it's very clear from what little there has that's fallen from the table publicly, the crumbs that we can piece together, that, yes, there clearly is pressure.

Look at Secretary Rice's language when she visited most recently in Baghdad. It was very much tougher talk than we've seen on her previous visit back in April.

The U.S. needs to see change and they need to see it now. They need to see the Baghdad security plan working. And, quite frankly, it's stalled. They need to see Nouri al-Maliki, the last possible hope they might have for the democratic model here, the man they've invested so much in, succeed.

Yet what is he doing?

He's refused to dismantle the militias and according to an interview with one U.S. paper, he's preventing U.S. forces from going into the heart of the capital, where the largest militia comes from -- Wolf.

BLITZER: And that would be Sadr City.

Michael Ware reporting for us.

Thanks very much.

Zain Verjee is on assignment.

She's traveling with the secretary of state.

Carol Costello is joining us once again with a closer look at some other stories making news -- Carol.

CAROL COSTELLO, CNN ANCHOR: Wolf, look for NATO forces in Afghanistan to step up operations against the Taliban. Commander General David Richards announced a country wide security offensive planned for this winter. He also says the U.S.-led coalition adopted what he calls a peacetime approach too soon after toppling the Taliban, setting the stage for the current come back.

President Bush has signed into law a bill he says will save American lives. It sets new rules for the treatment of terror suspects and legalizes the trials by military commission that the Supreme Court struck down in June. The president calls it his most important legislative priority of this year.

And there is a new treatment option for some of the 20 million Americans with diabetes. The government has approved a new Merck drug called Januvia, which spurs the pancreas to produce more insulin, and, at the same time, it signals the liver to stop making glucose. But, oh, boy, cost could be an issue. The once daily pill runs almost $5 a dose.

That's a look at the headlines -- Wolf.

BLITZER: Carol, thanks very much.

We'll check back with you soon.

Let's stay in New York.

Jack Cafferty has got "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Wolf, let me read you something here: "Every politician needs Evangelicals. And like a teenaged boy on a date with a beautiful girl, they will say anything and everything to get what they want."

That's from the new book, "Tempting Faith: An Inside Story of Political Seduction" by David Kuo, who used to be the deputy director of the White House Office of Faith-Based Initiatives.

Kuo charges that the office was misused to rally Evangelicals to get Republicans elected. And he also claims that officials mocked the Christian leaders behind their backs, calling them nuts, ridiculous, out of control and goofy.

Kuo's former boss disputes many of the allegations, as does the White House.

Meanwhile, Kuo is calling on Christians to fast from politics for two years, to focus on practicing compassion and to give their money to charity. Not exactly what Republicans want to hear from their base three weeks before the mid-term elections.

Here's the question -- how damaging are claims that Bush administration officials mocked Evangelicals behind their backs?

E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: The short answer, pretty damaging.

He was here in THE SITUATION ROOM yesterday, David Kuo.

You were preparing for your big special Thursday night. But a very interesting interview, Jack.

CAFFERTY: I was working hard. I missed it.

BLITZER: You're always working hard, Jack.

Thanks very much. Up ahead, how the North Korea nuclear crisis could spark an arms race in Asia. We're going to show you who could be the first to develop a nuclear weapon is a matter of only months.

Plus, a veteran congressman fighting to hold his seat and now facing questions about some comments he made. Some are calling it combative and confrontational and a little off.

Does the Connecticut Republican, Chris Shays, stand by his words?

Plus, the U.S. marks a milestone, welcoming the 300 millionth person.

The question is who and where?

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

(COMMERCIAL BREAK).

BLITZER: It's a delicate balancing act -- politicians walking a tightrope between saying what they really think versus saying something that crosses the line. As the mid-term election nears, it seems every candidate is closely watching the opponent's words to see what can be used against them.

Our Mary Snow is watching a key race between a Connecticut congressman and a Democratic challenger.

Mary is joining us now from Wilton, Connecticut -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, here in the 4th Congressional District, the race is so tight it's considered a tossup. The focus of late has been on two controversial comments made by a Connecticut congressman. One he's retreating from, the other he is not.

(BEGIN VIDEOTAPE)

SNOW (voice-over): He is the 19-year Republican incumbent congressman.

DIANE FARRELL (D), HOUSE CANDIDATE: Hi, I'm Diane Farrell.

SNOW: She is the Democratic challenger in what's been called a close race. Iraq has been the big issue between Congressman Chris Shays and Democrat Diane Farrell so far. But in the final weeks of the campaign it's some of the language being used by the candidates that's drawing attention.

STUART ROTHENBERG, "THE ROTHENBERG REPORT": I think he's made some statements that some people have portrayed as unusually combative, confrontational and a little offbeat.

SNOW: Congressman Shays says he regrets one statement he recently made referring to Abu Ghraib as a sex ring and not torture. REP. CHRIS SHAYS (R), CONNECTICUT: I made the mistake of describing two hours of what I watched. I watched two hours of just one picture after another of just pure, unadulterated porn. And it's abuse. But what took place was torture. I should have said that from the start.

FARRELL: Just outraged.

SNOW: Shays' opponent has been linking him to the Bush administration.

FARRELL: It sounded a lot like what the Bush administration has done to try to minimize. He sounds a lot like Mr. Rumsfeld.

SNOW: And there's this uproar over a statement Shays made defending House Speaker Dennis Hastert. Democrat Farrell suggested Shays return campaign money from Hastert because of the Foley matter. That news came out on a day when Farrell campaigned alongside Senator Ted Kennedy.

Listen to Shays repeat his controversial comment about Kennedy to "CNN TODAY."

(BEGIN VIDEO CLIP FROM "CNN TODAY")

SHAYS: And with all due respect, I know that my leader didn't drive down a road, go off a bridge and leave a young lady to die and then the next day figure out how he was going to deal with it with a press conference. And I think that was a fair comment.

FARRELL: After saying it was a Democratic conspiracy was to strike back at an incident that took place over 30 years ago. No responsibility. No accountability.

SNOW: In a statement, a spokeswoman for Senator Kennedy said: "This just makes clear the real need for change in November. Beyond that, I'm not going to justify such a desperate attack with a response."

(END VIDEOTAPE)

SNOW: And as for the criticism about his comment regarding Senator Ted Kennedy, Congressman Shays says he considers that a double standard, a double standard, he says, that he is tired of.

Both candidates face-off once again tonight in the latest in a series of debates -- Wolf.

BLITZER: Mary Snow reporting for us in a tough, tough race there.

Mary, good work.

Thank you.

In the final stretch before election day, we're seeing trends and looking for themes that could make a political impact long after the votes are counted and the winners are sworn in.

Let's go to our senior analyst, Jeff Greenfield -- Jeff.

JEFF GREENFIELD, CNN SENIOR ANALYST: Wolf, it is one of the hardest subjects to talk about honestly, but it is also one that's been with us since before America was even a country. The subject is race.

And the question this election is how will it play out in some of the major contests this fall?

(BEGIN VIDEOTAPE)

GREENFIELD (voice-over): Yes, things have changed fundamentally in America from the days, little more than 50 years ago, when segregation and disenfranchisement were a way of life in a quarter of the country.

But it is also true that in the 130-plus years since Reconstruction ended, exactly three African-Americans have served in the U.S. Senate -- Ed Brooke, Carol Moseley-Braun and Barack Obama. He's currently the only black senator. And exactly one African- American, Virginia's Doug Wilder, has ever been elected governor of a state.

This year, there are six African-Americans running as major party candidates for major office. In Ohio, Secretary of State Ken Blackwell is the GOP nominee for governor. He's running far behind in the polls in a state where the dominant Republicans are mired in scandal and low approval ratings.

In Pennsylvania, former Pittsburgh Steeler great Lynn Swann is the GOP nominee for governor. Running well behind, Governor Ed Rendell.

In Massachusetts, former Justice Department official Duvall Patrick is the Democratic nominee for governor. He's running well ahead in the polls for a job no Democrat has won in that state in 20 years.

But it is in two Senate campaigns that race may play out, in strikingly different ways.

In Tennessee, Representative Harold Ford, Jr. is the Democratic nominee against former Chattanooga Mayor Bob Corker. Ford, whose family has been prominent in state politics for decades, is running a decidedly centrist campaign, shunning the liberal label. He's dead even in the polls and says this about the race factor.

REP. HAROLD FORD (D), TENNESSEE SENATE CANDIDATE: I don't know. I mean I'm who I am. God made me like this. And I think voters accept that. I'm proud of who I am. In this race, it hasn't been as much of an issue as some people from outside would view it.

GREENFIELD: It is, however, an undeniable fact that, in the past, black candidates have tended to do better in the pre-election polls than on election day.

The other significant Senate candidate is Maryland Lieutenant Governor Michael Steele, a Republican. He is a staunch conservative whose campaign has featured strikingly unconventional ads. His opponent, Congressman Ben Cardin, won a close primary against an African-American rival.

Since blacks are the most loyal Democratic constituency, any increase in the black vote for a Republican could be crucial. Right now, Steele is trailing in the polls by single digits.

(END VIDEOTAPE)

GREENFIELD: The election of any of these black candidates would be a major story. A much bigger one would be if we could accurately report on election night that in all of these contests, race didn't matter at all -- Wolf.

BLITZER: Jeff, thank you.

Jeff Greenfield reporting.

In the Tennessee Senate race, an independent group has begun- airing a radio ad questioning whether Democratic Congressman Harold Ford, Jr. would, and I'm quoting now, "represent all of us without discrimination." The campaign of Ford's Republican rival, Bob Corker, is denouncing the ad as outrageous and calling for it to be pulled immediately.

Coming up, Secretary of State Condoleezza Rice on her way to Asia to try to diffuse the North Korea nuclear crisis.

But what if North Korea sets off another explosion?

We'll check in with our Zain Verjee. She's traveling with the Secretary. They've just made a refueling stop in Alaska. Zane is standing by to join us.

And population now 300 million.

But which baby pushed the U.S. over the top?

We'll have the details of a major American milestone.

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

(COMMERCIAL BREAK)

BLITZER: And we're just getting this in to CNN.

The secretary of state, Condoleezza Rice, traveling to Asia right now to deal with the North Korea nuclear crisis.

Our own Zain Verjee is traveling with the Secretary.

Zane is joining us now on the phone from Alaska, where the Secretary's plane is refueling -- Zane, first of all, tell us what the Secretary said aboard her aircraft to reporters traveling with her on this notion that the North Koreans may be planning a second nuclear test.

ZAIN VERJEE, CNN ANCHOR: Wolf, Secretary Rice said that she was concerned about a further test. She said essentially North Korea would just isolate itself further, it's not in its interests to do that. She also said that North Korea is being told and pressured by all quarters, just don't do it -- Wolf.

BLITZER: What did she say is her major goal in going to the region right now?

She's going to be going to Japan, South Korea, China.

What is her major goal?

VERJEE: Well, one of the goals that she outlined was essentially to get the allies to implement the resolution, 1718, that basically slapped sanctions on North Korea after it tested a nuclear development. The resolution calls for the interdiction of suspicious cargo, basically to keep a close eye on North Korea.

Secretary Rice says that on her trip, she just wants to work out the nuts and the bolts with the allies -- how exactly is the cargo going to be inspected. One senior State Department official aboard the plane said look, shipments need to be inspected thoroughly by air, sea and land. But it doesn't mean stopping every North Korean ship going in and out of the country.

But there are going to be major inspections, at least that's what Secretary Rice wants. And she says South Korea will be -- will have to be on board for it to be successful. And that could be a challenge.

BLITZER: Zain Verjee reporting for us from Elmendorf Air Force Base in Alaska, where the Secretary of State's aircraft is refueling now on her way to Asia -- Japan, South Korea, China.

Much more from Zane coming up in the coming days right here in THE SITUATION ROOM.

Meanwhile to Iraq, in fields and farmlands south of Baghdad, U.S. troops are on the hunt for insurgents and their weapons in a lawless area known as the so-called Triangle of Death.

In a CNN exclusive, our Arwa Damon is embedded with the U.S. troops.

She's joining us now live from Yusufiyah -- Arwa, give our viewers a sense of what you're seeing and hearing.

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Wolf, it's an incredibly intense environment. Just to give you a snapshot, the roads here are lined with massive potholes from roadside bombs that have already detonated. These roads are so dangerous that the troops, when they're on foot patrolling these fields and farmlands just outside of Yusufiyah, they do not use the roads.

Instead, they end up having to travel through this incredibly challenging, in fact, even hellish terrain to try to search through the entire location.

We're talking they find themselves up to their necks in canal water, walking through these canals up to their waists in water, trudging through knee-high mud, crossing shrubs. It's this incredibly challenging environment -- Wolf.

BLITZER: Arwa, we're going to be checking back with you.

Arwa Damon, one of our courageous journalists, risking her life to bring us these reports.

Arwa Damon with the U.S. troops in the so-called Triangle of Death in Iraq.

Coming up, North Korea may be on the verge of a second nuclear test, maybe even a bigger one.

Would that send high tech neighbors Japan, South Korea, Taiwan racing to build nuclear weapons of their own?

And how quickly could they do it?

You're going to be surprised at how quickly they could if they wanted to.

And movie star Wesley Snipes, the latest drama is one of cold, hard reality. An indictment for failing to pay tens of millions of dollars in income tax.

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, twice the amount of concern. There's new worry over whether or not North Korea may be preparing to conduct a second nuclear test. U.S. officials tell CNN that activity at a second site is similar to activity seen before a nuclear test done on October 9th.

Also, he died after being found guilty of crimes. Now, a court official says a judge in Houston has vacated Enron founder Ken Lay's fraud and conspiracy conviction, citing Lay's inability to appeal.

And after the initial shock, more aftershocks. Hawaii is shaking two days after a powerful earthquake. Meanwhile, the federal government has deemed many areas a federal disaster, meaning those parts will now have access to federal recovery programs. I'm Wolf Blitzer, you're in THE SITUATION ROOM.

All that coming up. But there's a new development happening right now involving the Mark Foley case. Let's go to Florida, our Susan Candiotti is standing by in Miami. What have we learned Susan?

SUSAN CANDIOTTI, CNN CORRESPONDENT: Well Wolf, I now know who the civil attorney is who is representing former Congressman Mark Foley and I have spoken with this lawyer. His name is Jerry Richmond and he's in West Palm Beach, Florida and he says that he has had several phone conversations with Mr. Foley, says he does not know where he is in rehab treatment at the present time, but that they are now reaching out to the Archdiocese of Miami, which includes the Diocese of Palm Beach County, to accept what has been an offer already made through the state attorney's office.

An offer of counseling to the former congressman for alleged sexual misconduct and abuse by a member of the clergy, a catholic priest, when Congressman Foley says he was between the ages of I believe 13 and 15 years old, a teenager.

Now this lawyer says that he himself does not yet know the name of the priest, only that he is still alive. That name has not yet been turned over to the Archdiocese of Miami. In fact, the lawyer says the archdiocese has not yet returned his efforts to reach out to them to try to accept an offer of counseling that has been made by the archdiocese.

The lawyer also stated that there will be no criminal charges pursued by the state attorney's office because it is beyond the statute of limitations. So that's not going to happen. At this point, he said, it's too early to discuss a civil lawsuit. Back to you, Wolf.

BLITZER: All right Susan, thanks for updating us on that. Susan Candiotti in Miami.

Let's get back now to our top story. U.S. intelligence has spotted suspicious activity at another North Korean site, similar to the movements before the north's first nuclear test. And Pyongyang is adding some verbal saber rattling right now calling the United Nations sanctions resolution in their words a declaration of war.

Now in the nuclear shadow of both North Korea and China, will South Korea and Japan use their high-tech industrial might to quickly develop nuclear weapons of their own. Let's check in with CNN's Brian Todd, he's looking into the story. Brian?

BRIAN TODD, CNN CORRESPONDENT: Wolf, North Korea's neighbors may be on the verge of building their own nuclear arsenals and most alarming is the speed at which those weapons could be built, one projection, a few months.

(BEGIN VIDEOTAPE)

TODD (voice-over): Torches and fireworks in Pyongyang, another occasion for North Korea to take the world stage, as we get stronger indications of a second possible nuclear test. If that happens, experts warn an Asian arms race could follow.

JON WOLFSTAHL, CTR. FOR STRATEGIC & INTL. STUDIES: Japan is often at the top of most people's watch-list because they do have an advanced nuclear power program, peaceful program for energy production and it's believed they could build a nuclear weapon in a matter of months.

TODD: But analysts believe Japan may hold back for political reasons. The new prime minister has reinforced the government's stance against nuclear weapons and the nuclear taboo in Japan since Hiroshima is still a strong part of the national fabric. Next on the list weapons experts say, South Korea, possibly one to two years away from being able to make a workable nuclear bomb. Then, Taiwan, same timetable.

WOLFSTAHL: Taiwan in fact had a secret effort to build a nuclear weapons program back in the early 1980s. And when the U.S. government found out about it, they forced Taiwanese government to shut it down.

TODD: Taiwan would hold back, analysts say for fear that China would attack if it goes nuclear. Most experts believe the Asian powers won't have a knee jerk reaction to a second North Korean test, but they say other nations in another dangerous region are watching.

MICHAEL RUBIN, AMERICAN ENTERPRISE INST.: North Korea gets a nuclear bomb, so now Iran figures that it also has a right to. Iran develops a nuclear bomb or nuclear power and suddenly Turkey, Saudi Arabia, Egypt, and even Yemen are talking about developing nuclear programs.

(END VIDEOTAPE)

TODD: And one of them already is. Within the past few weeks Egypt announced it may pursue nuclear energy for civilian purposes and it may get help from the state department which has a program announced this year to assist countries in developing nuclear energy safely with an eye toward making sure they don't weaponize -- Wolf.

BLITZER: All right Brian. Thanks very much. The nuclear situation with North Korea is one focus of our SITUATION ROOM strategy session today. Joining us are two CNN political analysts, Paul Begala is a Democratic Strategist, J.C. Watts is a former Republican Congressman from Oklahoma.

In our new CNN poll, we asked a bunch of issues, if these issues were extremely important to your vote, terrorism got 43 percent, Iraq 43 percent, economy 33 percent, North Korea 32 percent, Mark Foley down at 27 percent. Who gains by this list of issues, extremely important three weeks before the elections, going down the row?

PAUL BEGALA, DEMOCRATIC STRATEGIST: Right now the Democrats are leading on all of those issues. The problem that the president has right now is he has, since 9/11, been banging the drum on national security, saying that you should be afraid. In fact, Dick Cheney in the presidential election went so far to say, if John Kerry wins, we'll be hit again. Remember he said that?

The problem he's got, is that old dog don't hunt no more. Democrats now are more trusted on national security than Republicans. The president hasn't internalized this and so he's actually raising issues that help Democrats because of a strong sense out there in the country that frankly the president and Mr. Rumsfeld have not been competent and they have not been honest.

BLITZER: If there is a second nuclear test in North Korea in the next few days or before the election, how would that play out politically in your opinion, J.C.?

J.C. WATTS, POLITICAL ANALYST: Well, Wolf, that's tough to say. I think it's all speculation, we're all guessing what the polls are saying. I think as is said in politics, a real poll will be taken on Election Day. And I do believe in the heart of most Americans, they want somebody in the White House, that when this evil guy, North Korea, says that he will do evil things to the world and to the United States of America, that somebody will take him seriously and I think this president and Republicans have.

And I think it's important to note that the president was criticized ferociously, when he talked about the three axis of evil, North Korea being one of them and I think that's playing out right before our very eyes today.

BLITZER: The president today signed into law the new terror interrogation detainee legislation. And in the course of that signing ceremony, he made this sort of indirect swipe at the Democrats. Listen to this.

(BEGIN VIDEO CLIP)

BUSH: Every member of congress who voted for this bill has helped our nation rise to the task that history has given us. Some voted to support this bill even when the majority of their party voted the other way.

(END VIDEO CLIP)

BLITZER: Interesting way at a signing ceremony to slam the Democrats.

BEGALA: It's the one thing he's good at. No, he's actually got three, he's good at baseball, you know he's good at fraternity rush, he's good at politics, he's a good strategist. He really is. I've always thought Karl Rove got too much credit, not that Karl is not the architect, but the president gets too little. But it's all he's good at. And it's not saving his party right now.

I mean if he wants to go and do that, the more he is on TV, the better. President Bush, what is he in our poll, 36 percent? That's like, he's as popular as Mel Gibson at a B'Nai Brith Convention. Ok, I want him on TV every day Mr. President, do some more shots at the Democrats because all it does is energize my base and depress his.

BLITZER: I think he's a 37 actually.

BEGALA: Thirty seven?

BLITZER: Yes.

BEGALA: Well, Mel is at 38 at B'Nai Brith I think, so he's right at the --

BLITZER: Here's what Russ Feingold said today reacting to the signing ceremony, he was very angry about it. "The legislation signed by the president today violates basic principles and values of our constitutional system of government, it allows the government to seize individuals on American soil and detain them indefinitely with no opportunity to challenge their detention in court. We will look back on this day as a stain on our nation's history." The Democratic Senator Russ Feingold making that statement.

WATTS: Well, you know, bless his heart. I'm really not concerned about the president saving the Republican Party, I'm concerned about the president saving American lives. Russ Feingold, I suspect that he probably did not vote for this legislation.

BLITZER: He didn't.

WATTS: That's a safe guess. But you know, Wolf, what has he done? What has Senator Feingold done to protect American lives from evil people, from the terrorists? It seems as though and I think this is the thing that Democrats have to be careful about.

It seems as if Russ Feingold and people like him are always on the side of the terrorists. That's the perception. I think this is serious legislation and I think it saves American lives. The president has done a good job enforcing this issue and Russ Feingold is on the wrong side of that.

BLITZER: Well there are plenty of voters out there who believe that when it comes to fighting terrorists, the Republicans know how to do it better.

BEGALA: There are but there are more voters who believe Democrats will do better and for good reason, because people are smart. They've been watching this crowd run things. They're wholly incompetent, the same administration that couldn't manage Katrina now has botched the occupation of Afghanistan, they botched the war in Iraq and they're botching the war against terrorism. Back home, J.C.'s from Oklahoma, I'm from Texas.

Back home, you know President Johnson used to say a crowd like this, they couldn't pour rainwater out of a boot if you wrote the instructions on the heal. Now I cleaned that up actually, he didn't actually say rain water, but I want to -- it's a family show, it's the middle of the afternoon. The problem is competence and honesty, two things that three years ago the president scored very high on, today he scores extraordinarily low. And no one wants to trust their lives to George W. Bush any more.

BLITZER: We have to leave it there guys, unfortunately. Thanks very much Paul and J.C. They are part, as all of our viewers know, as part of the best political team on television. Now as we head into the crucial mid-term elections, only three weeks away, stay up to date with the CNN political ticker, the daily news service on CNN.com gives all of us 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, which baby was born when the U.S. census clock hit 300 million? Does one new resident represent the magic number.

And they're in hot pursuit of Wesley Snipes but this is no movie. The actor is indicted and faces arrest. Details coming up.

(COMMERCIAL BREAK)

BLITZER: America's marking a milestone today with demographers taking special note. It's believed that somewhere in the country a baby was born this morning pushing the U.S. population to the 300 million mark. The question is, who is it? CNN's Carol Costello once again joining us from New York with more. Carol?

COSTELLO: Well you know Wolf, it seems so anti-climatic. 7:46 eastern time came and life goes on. Right now we know of three babies -- OK, their parents, vying for the title, although they may have lost already to an immigrant coming over the border.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): That is the official population clock. At precisely 7:46 a.m. eastern time, we theoretically greeted our 300 millionth brand new resident. But which baby was it, Zoe or Emanuel in New York or Kya in Atlanta? All claim to be that 300 millionth bundle of joy. Zoe is half Jamaican and half Hispanic. Dad Garvin says that works for America.

GARVIN HUDSON, FATHER: The more diverse, the more ideas you have, the more creativity.

COSTELLO: And although all of this may seem a little exciting compared to 1967, it's downright boring. Back then, "Life" magazine sent photographers across the country to find the 200 millionth baby. Five hundred onlookers witnessed President Lyndon Johnson as the population clock hit 200 million.

This year President Bush still in the White House at 7:46 this morning, didn't utter a peep about the new boom, until more than 10 hours later, when he issued a celebratory statement reminding us that America's greatest asset is our people.

Many demographers say the quiet celebration had everything to do with politics. Jacob Segal who worked for the Census Bureau in 1967, is quoted in "USA Today" saying, "There is no way that you can talk about our arrival at 300 million without pointing to the fact that immigration is such a heavy component of the annual growth." Not exactly a sexy political issue to play up these days, especially when you consider the cost of a rising population.

WILLIAM FREY, DEMOGRAPHER, BROOKINGS INSTITUTION: We do have to be careful that we're much more economical about how we plan our growth, about how we take care of our consumption. COSTELLO: Still, there must be some cachet about becoming the 300 millionth in America, if not for the politicians, then certainly for the three sets of parents vying for the title for their little ones.

HUDSON: Why not? Hey, I mean none of us are famous, why not let her come into the world, enter famous.

(END VIDEOTAPE)

COSTELLO: Why not? So if Zoe or Emanuel or Kya when the title as the 300 millionth American, they won't get much. Although you can bet some reporter will track them down in 2043 when our population is expected to hit 400 million. Wolf?

BLITZER: Congratulations to all of us on that Carol. Thanks very much. Carol Costello doing a good report for us. Meanwhile, the actor Wesley Snipes has been named in an eight count indictment in Tampa, Florida. Federal officials say Snipes has failed to pay tens of millions of dollars in federal income tax. Let's bring in our internet reporter Jacki Schechner, she's taking a closer look at the charges. Jacki?

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, you can read the 14 page indictment for yourself. We put a very easy link for you online at CNN.com/situationreport. In the indictment federal officials say that the actor Wesley Snipes didn't pay his taxes for six years, starting in 1999 and going through 2004.

An IRS official puts that amount estimated in tens of millions of dollars. The indictment also alleges that Snipes illegal filed tax returns or claims for the year 1996, saying that he was owed in excess of $4 million and then again in 1997, saying that he was owed in excess of $7 million.

Now the indictment also says that Snipes conspired with two men, one of them is an accountant, whose license was allegedly revoked in Florida and Ohio, yet he continued to practice. Another one ran organizations that claimed to save you money on your taxes. Now several calls to Snipes' publicists and manager went unanswered. If he's convicted, he faces up to 16 years in prison -- Wolf.

BLITZER: Jacki thank you. Up ahead, Jack Cafferty wants to know how damaging are the claims that the Bush administration mocked evangelicals behind their backs. Jack's standing by with THE CAFFERTY FILE.

Plus, what's in a name? A lot of confusion when it comes to Hillary Rodham Clinton. CNN's Jeanne Moos takes a closer look. You'll want to see this in our 7:00 p.m. eastern hour. We'll be right back.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Jack Cafferty in New York -- Jack. CAFFERTY: The question this hour Wolf, is how damaging are claims that Bush administration officials mocked evangelicals behind their backs.

Richard writes this, "Those claims are not very damaging at all. The Republicans will smear Kuo, that's the author of the book making these claims, as a disgruntled former employee, just like they did Richard Clarke. And then they'll pray (ironically) that fundamentalist brain washing continues protecting them from the emergence of embarrassing facts."

Brad in Crested Butte, Colorado, "Jack as a Christian conservative I too feel some religious leaders are cuckoo birds. However, nothing would ever cause me to vote for pro-abortionists, pro-homosexual, pro-porno, secular relativist liberals."

Bill in Petaluma, California, "They are nuts. Of course that's not a good reason to make fun of them. Well it's almost not a good reason."

Kim in Alexandria, Virginia, "I'm a conservative Christian and some of us are out of control. Nothing wrong with calling a spade a spade. Please don't lump us together like we have only one thought process. We are more diverse than you seem to think."

Michael in Santa Fe, New Mexico, "Gee whiz, really? Take a number and get in line. They've been laughing at the rest of us for years."

Jeff in Columbia, Maryland, "Could the family values good old boy Bush administration really be so insincere? Of course, but charging the Bush administration with insincerity is sort of like passing out speeding tickets at NASCAR race."

Please join us Thursday, 7:00, it's a big event in my life. I want too share it with you. We're going to do an hour on our broken government, what's wrong with it, what has to be done to fix it. An hour is probably not enough time but we're going to take a shot at it. We'd like your ideas, e-mail them to jackbrokengovernment@cnn.com. You can also send us your videos at CNN.com/ireport. I have no idea what the hell that is, but they tell me to read it so I do -- Wolf.

BLITZER: And you're a good employee Jack. Thanks very much.

CAFFERTY: Team player as they say.

BLITZER: That's correct. Thank you, we'll all be watching, Thursday night, 7:00 p.m. eastern, a special Jack Cafferty. Up next, they'll likely be the ones to decide future U.S. elections, but who are they? We're going to show you in our welcome to the future report. Stay with us, you're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Who will have the greatest influence in future elections, forget liberals, conservatives, moderates, the answer could be immigrants. Here's CNN's Miles O'Brien with our "Welcome to the Future" report. Miles?

MILES O'BRIEN, CNN ANCHOR: Wolf, New York City's Times Square is known as the crossroads of America. There really is no better symbol of the American melting pot. But as our population morphs with the flow of immigrants to our country, our political system may soon be at a crossroads as well.

(BEGIN VIDEOTAPE)

O'BRIEN: Laura Olson is a professor of political science at Clemson University, she tracks trends in voting behavior.

LAURA OLSON, CLEMSON UNIVERSITY: The Census Bureau found that between 1990 and 2000 the percentage of people living in the United States who were born outside of the United States increased by 57 percent.

O'BRIEN: And a substantial portion of them are clustered in the Border States with Mexico. If and when they or their children become citizens, the political equation there will change.

OLSON: A lot of those states aren't necessarily sort of battleground states like we normally would think of them, but it's important to note that immigrant groups, if they choose to get politically motivated, can have probably a little bit more impact in those states than in others.

O'BRIEN: So what do politicians need to do in these changing times?

OLSON: Figure out if there is something that unifies that constituency and promise to deliver that.

O'BRIEN: But that can be a challenge. Immigrants are, after all, a diverse constituency.

OLSON: There are people out there with all sorts of different perspectives and those perspectives need to be heard by the political system.

O'BRIEN: Olson believes it is highly unlikely there will be a viable third party in American politics any time soon. While politicians make it sound like the country is deeply divided, most Americans are in the moderate middle. There may not be enough voters who are disenchanted to make a third party thrive -- Wolf.

BLITZER: And briefly we want to check back with our Susan Candiotti. We're getting more news involving the former Congressman Mark Foley. Susan?

CANDIOTTI: The civil attorney for the former congressman has now spoken publicly saying that he has reached out to the Archdiocese of Miami to accept an offer for counseling for his client.

(BEGIN VIDEO CLIP)

GERALD RICHMAN, MARK FOLEY'S CIVIL ATTORNEY: I don't have the name myself yet. I will have that tomorrow.

(END VIDEO CLIP)

CANDIOTTI: He has not yet named who the priest is. In fact the lawyer says he doesn't know the name of the priest who allegedly molested the former congressman. No criminal charges will be filed, he says. Back to you, Wolf.

BLITZER: All right Susan, thanks. Susan has a lot more on this story coming up in our 7:00 p.m. eastern hour right here in THE SITUATION ROOM. Remember, we're in THE SITUATION ROOM, weekday afternoons from 4:00 to 6:00 p.m. Eastern, back in an hour at 7:00 p.m. Eastern, my interview with the Republican governor of Massachusetts, Mitt Romney, that's coming up 7:00 p.m. Eastern. He's thinking about running for president. All that coming up, see you in an hour.

That's it for now, "LOU DOBBS TONIGHT" starting right now. Lou is joining us from Kansas City -- Lou.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com