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On the Story

Democratic Presidential Race Shifting High Gear; Story of How a Leak Investigation Took on a New Face

Aired January 03, 2004 - 10:00   ET

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


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


KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Welcome to CNN's ON THE STORY, where our journalists have the inside word on the stories we covered this week. I'm Kelly Wallace, in New York, on the story of a Democratic presidential race shifting into high gear and foes of frontrunner Howard Dean hoping to stop his momentum.
DENISE BELGRAVE, CNN CORRESPONDENT: I'm Denise Belgrave in Baghdad. We're on the story of this country's transition to its own self-rule. We're also going to take a look at the spate of violence that's gone on in the country in the last week.

ELAINE QUIJANO, CNN CORRESPONDENT: And I'm Elaine Quijano, on the story outside Dulles National Airport, outside Washington, D.C., just one place where the government and the airlines are on guard against possible terrorism. I'll have more on that a little later.

JOSIE BURKE, CNN SPORTS CORRESPONDENT: I'm Josie Burke in New Orleans. I'll be back later on the story of how the latest excuse to party here in the Big Easy is a college football national championship that has many fans crying foul.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: And I'm Dana Bash, on the story of how a leak investigation took on a new face and maybe a new risk for the administration.

Also coming up, how U.S. help for Iranian earthquake victims may pay off diplomatically.

And we're on the story of states cracking down on drivers with New laws for the New year.

And at the end of the hour, we'll listen to the president's weekly radio address. And you can email us at onthestory@cnn.com.

Now, straight ahead to Kelly Wallace, and the political beat among Democrats of family feud.

(BEGIN VIDEO CLIP)

WALLACE: And you heard what they said. They said you can dish it out but you can't take it, that you've been criticizing them and they're doing the same about you.

HOWARD DEAN (D), DEMOCRATIC PRESIDENTIAL CANDIDATE: That kind of talk is not going to win the primary and it's not going to win the election.

(END VIDEO CLIP)

WALLACE: And we caught up with Howard Dean in South Carolina earlier this week. South Carolina could be an important primary contest, coming after Iowa and New Hampshire. This, as Dean's Democratic rivals are seeming to do everything they possibly can to stop his momentum. And Dean fired back earlier this week, saying that the Democratic Party chief, Terry McAuliffe, should be doing more to stop these attacks and to preserve or to help the Democratic nominee defeat President Bush.

We asked Howard Dean about that and he said he and Terry McAuliffe get along fine, all is well there. But he made it clear he is worried. He thinks that Democrats need to run a positive campaign to defeat President Bush.

BASH: Kelly, I want to ask you more about what Howard Dean said later about his comments regarding Terry McAuliffe. It certainly seemed to be very unusual for a Democratic candidate to be essentially attacking his own party chairman like that. What impression did you get from Howard Dean about why he said those things? And, really, where he is at this point on the issue?

WALLACE: Well, he clearly seems to feel this, Dana, that he feels that the Democrats attacking him could end up that if he is the nominee, he could potentially be somewhat bruised and be presiding over a divided party. And that could be more difficult for a Democrat to defeat President Bush.

But it's interesting. A day after he made those comments, those published comments, he made a phone call to Terry McAuliffe it seems, to do some damage control. We asked him about that phone call. He said if he wanted to tell us about it, he would have let us in on the call. But he said he and Terry McAuliffe get along fine and he'll leave it at that. Clearly, he made those comments, but he appeared to do some damage control behind the scenes in that phone call to McAuliffe.

BELGRAVE: Kelly, can you tell me a little bit about what Dean is proposing to do if he's elected president about the situation in Iraq?

WALLACE: Well, that's a very good point, because he has been very, very critical of the war in Iraq, saying that the administration didn't do enough internationally, wasn't really truthful when it comes to the evidence of weapons of mass destruction. So a lot of Dean's own rivals and others have been turning the finger and saying, what would you do in Iraq?

He basically says that what he would try to do is get more international forces inside the country, that that would be his first order of business. He says he needs to repair international alliances and encourage other countries to get their troops on the ground and to take the time that is necessary to turn the country over to a democratically-elected Iraqi government. Again, though, he's facing a lot of questions about what he would do differently. One of the main things, he says, is turn it over to more international forces and get more American forces out.

BASH: Kelly, you spent some time in South Carolina this week. That is clearly the state that everybody is looking at right now, after Iowa and New Hampshire. That is the place that a lot of Democrats say could either be the end or the -- or excuse me, that will basically make it clear whether or not Dean is unstoppable. What are you hearing from Democrats down there in South Carolina about Howard Dean, somebody who's from Vermont, from New York, certainly not a southerner, to say the least?

WALLACE: It's so interesting, Dana, because as we watched Howard Dean on the stump in South Carolina, every speech, he made it clear. He said, what people must wonder what a Vermont Yankee is doing in the South. And can someone from the North win in the South?

So right away, making clear he knows he's a northerner, he knows he might not have as much support. But this is very critical. It's the first primary in the South. African-American voters could make up to 40 to 50 percent of the primary voters.

Right now, Howard Dean hasn't made tremendous inroads in the African-American community. But the polls are sort of wide open right now. The latest poll shows Howard Dean with, like, 16 percent, just a few points ahead of the others. And 35 percent at least undecided.

So right now this race is wide open. It is the home state, really, where John Edwards was born, the senator. He needs this state, many people believe, for his campaign to continue.

And the other candidate many people are watching closely, Wesley Clark, the retired general. Strong support when it comes to military veterans, that if he does well there and has some good showing in New Hampshire, that he potentially could be a strong competitor to Howard Dean.

BELGRAVE: Kelly, can you tell me about what it is Dean has said he's going to do in terms of reconstruction funds? Does he see more funds coming into Iraq?

WALLACE: Well what -- you get a sense from Howard Dean right off the bat is that he believes -- he uses strong language to criticize the administration when it comes to the United States' standing around the world and repairing the damage. He uses this line, saying that he will restore honor and integrity to the reputation of the United States.

Those are pretty loaded words. But he believes the reputation of the United States is badly damaged. So he says he will do what he can to improve the standing of the United States, improve relations with other countries. And what that means, you can understand it to mean, he thinks that as the standing of the United States has improved around the world, more countries will feel part of the process, part of the reconstruction process, will throw more money in and be more invested in what's happening on the ground in Iraq.

Obviously, a strong, strong challenge ahead. But he says repairing relations is the first step in getting more countries to weigh in and feel invested in what happens there.

BASH: Kelly, since you've been spending so much time out on the campaign trail, take us out there. Give us a sense of what the atmospherics are, what the sense is, what the feel is, as you travel around with these candidates, particularly Howard Dean at this time.

WALLACE: Well, one interesting thing, Dana, about Howard Dean, is you really get the sense of a very energized Democratic Party faithful turning out to see Howard Dean. He gets big crowds.

We were in Arizona, Sierra Vista, a pretty small part of the southern part of the state near Tucson, and there were hundreds of people turning out during an afternoon, a work day, to see Howard Dean. So he seems to be doing something.

Even his critics will agree. He seems to be energizing a lot of Democratic Party voters who are angry, who are angry about the war, angry about the current administration. But, again, you have other candidates who seem to be doing well, at least lately, including retired General Wesley Clark. And he seems to be hitting his stride now on the campaign trail.

He did an eight-state southern swing earlier in this week. He believes the South is crucial and very important to him. So you're seeing these candidates kind of get more of a stride as you go along, but you're still seeing something else, a lot of undecided voters.

And our own CNN poll showing that -- I think it's about 50-plus percent of people who say they're paying little or no attention right now to the political process. So you're hoping -- these candidates are hoping in the next two weeks before Iowa, a lot of voters start paying more attention.

BELGRAVE: I'd like to ask Dana a question. Dana, tell me something, does the White House really still feel like -- I know they took a lot of criticism that perhaps Iraq has become their Achilles heel. Do they still feel that way, is the criticism still out there?


Aired January 3, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Welcome to CNN's ON THE STORY, where our journalists have the inside word on the stories we covered this week. I'm Kelly Wallace, in New York, on the story of a Democratic presidential race shifting into high gear and foes of frontrunner Howard Dean hoping to stop his momentum.
DENISE BELGRAVE, CNN CORRESPONDENT: I'm Denise Belgrave in Baghdad. We're on the story of this country's transition to its own self-rule. We're also going to take a look at the spate of violence that's gone on in the country in the last week.

ELAINE QUIJANO, CNN CORRESPONDENT: And I'm Elaine Quijano, on the story outside Dulles National Airport, outside Washington, D.C., just one place where the government and the airlines are on guard against possible terrorism. I'll have more on that a little later.

JOSIE BURKE, CNN SPORTS CORRESPONDENT: I'm Josie Burke in New Orleans. I'll be back later on the story of how the latest excuse to party here in the Big Easy is a college football national championship that has many fans crying foul.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: And I'm Dana Bash, on the story of how a leak investigation took on a new face and maybe a new risk for the administration.

Also coming up, how U.S. help for Iranian earthquake victims may pay off diplomatically.

And we're on the story of states cracking down on drivers with New laws for the New year.

And at the end of the hour, we'll listen to the president's weekly radio address. And you can email us at onthestory@cnn.com.

Now, straight ahead to Kelly Wallace, and the political beat among Democrats of family feud.

(BEGIN VIDEO CLIP)

WALLACE: And you heard what they said. They said you can dish it out but you can't take it, that you've been criticizing them and they're doing the same about you.

HOWARD DEAN (D), DEMOCRATIC PRESIDENTIAL CANDIDATE: That kind of talk is not going to win the primary and it's not going to win the election.

(END VIDEO CLIP)

WALLACE: And we caught up with Howard Dean in South Carolina earlier this week. South Carolina could be an important primary contest, coming after Iowa and New Hampshire. This, as Dean's Democratic rivals are seeming to do everything they possibly can to stop his momentum. And Dean fired back earlier this week, saying that the Democratic Party chief, Terry McAuliffe, should be doing more to stop these attacks and to preserve or to help the Democratic nominee defeat President Bush.

We asked Howard Dean about that and he said he and Terry McAuliffe get along fine, all is well there. But he made it clear he is worried. He thinks that Democrats need to run a positive campaign to defeat President Bush.

BASH: Kelly, I want to ask you more about what Howard Dean said later about his comments regarding Terry McAuliffe. It certainly seemed to be very unusual for a Democratic candidate to be essentially attacking his own party chairman like that. What impression did you get from Howard Dean about why he said those things? And, really, where he is at this point on the issue?

WALLACE: Well, he clearly seems to feel this, Dana, that he feels that the Democrats attacking him could end up that if he is the nominee, he could potentially be somewhat bruised and be presiding over a divided party. And that could be more difficult for a Democrat to defeat President Bush.

But it's interesting. A day after he made those comments, those published comments, he made a phone call to Terry McAuliffe it seems, to do some damage control. We asked him about that phone call. He said if he wanted to tell us about it, he would have let us in on the call. But he said he and Terry McAuliffe get along fine and he'll leave it at that. Clearly, he made those comments, but he appeared to do some damage control behind the scenes in that phone call to McAuliffe.

BELGRAVE: Kelly, can you tell me a little bit about what Dean is proposing to do if he's elected president about the situation in Iraq?

WALLACE: Well, that's a very good point, because he has been very, very critical of the war in Iraq, saying that the administration didn't do enough internationally, wasn't really truthful when it comes to the evidence of weapons of mass destruction. So a lot of Dean's own rivals and others have been turning the finger and saying, what would you do in Iraq?

He basically says that what he would try to do is get more international forces inside the country, that that would be his first order of business. He says he needs to repair international alliances and encourage other countries to get their troops on the ground and to take the time that is necessary to turn the country over to a democratically-elected Iraqi government. Again, though, he's facing a lot of questions about what he would do differently. One of the main things, he says, is turn it over to more international forces and get more American forces out.

BASH: Kelly, you spent some time in South Carolina this week. That is clearly the state that everybody is looking at right now, after Iowa and New Hampshire. That is the place that a lot of Democrats say could either be the end or the -- or excuse me, that will basically make it clear whether or not Dean is unstoppable. What are you hearing from Democrats down there in South Carolina about Howard Dean, somebody who's from Vermont, from New York, certainly not a southerner, to say the least?

WALLACE: It's so interesting, Dana, because as we watched Howard Dean on the stump in South Carolina, every speech, he made it clear. He said, what people must wonder what a Vermont Yankee is doing in the South. And can someone from the North win in the South?

So right away, making clear he knows he's a northerner, he knows he might not have as much support. But this is very critical. It's the first primary in the South. African-American voters could make up to 40 to 50 percent of the primary voters.

Right now, Howard Dean hasn't made tremendous inroads in the African-American community. But the polls are sort of wide open right now. The latest poll shows Howard Dean with, like, 16 percent, just a few points ahead of the others. And 35 percent at least undecided.

So right now this race is wide open. It is the home state, really, where John Edwards was born, the senator. He needs this state, many people believe, for his campaign to continue.

And the other candidate many people are watching closely, Wesley Clark, the retired general. Strong support when it comes to military veterans, that if he does well there and has some good showing in New Hampshire, that he potentially could be a strong competitor to Howard Dean.

BELGRAVE: Kelly, can you tell me about what it is Dean has said he's going to do in terms of reconstruction funds? Does he see more funds coming into Iraq?

WALLACE: Well what -- you get a sense from Howard Dean right off the bat is that he believes -- he uses strong language to criticize the administration when it comes to the United States' standing around the world and repairing the damage. He uses this line, saying that he will restore honor and integrity to the reputation of the United States.

Those are pretty loaded words. But he believes the reputation of the United States is badly damaged. So he says he will do what he can to improve the standing of the United States, improve relations with other countries. And what that means, you can understand it to mean, he thinks that as the standing of the United States has improved around the world, more countries will feel part of the process, part of the reconstruction process, will throw more money in and be more invested in what's happening on the ground in Iraq.

Obviously, a strong, strong challenge ahead. But he says repairing relations is the first step in getting more countries to weigh in and feel invested in what happens there.

BASH: Kelly, since you've been spending so much time out on the campaign trail, take us out there. Give us a sense of what the atmospherics are, what the sense is, what the feel is, as you travel around with these candidates, particularly Howard Dean at this time.

WALLACE: Well, one interesting thing, Dana, about Howard Dean, is you really get the sense of a very energized Democratic Party faithful turning out to see Howard Dean. He gets big crowds.

We were in Arizona, Sierra Vista, a pretty small part of the southern part of the state near Tucson, and there were hundreds of people turning out during an afternoon, a work day, to see Howard Dean. So he seems to be doing something.

Even his critics will agree. He seems to be energizing a lot of Democratic Party voters who are angry, who are angry about the war, angry about the current administration. But, again, you have other candidates who seem to be doing well, at least lately, including retired General Wesley Clark. And he seems to be hitting his stride now on the campaign trail.

He did an eight-state southern swing earlier in this week. He believes the South is crucial and very important to him. So you're seeing these candidates kind of get more of a stride as you go along, but you're still seeing something else, a lot of undecided voters.

And our own CNN poll showing that -- I think it's about 50-plus percent of people who say they're paying little or no attention right now to the political process. So you're hoping -- these candidates are hoping in the next two weeks before Iowa, a lot of voters start paying more attention.

BELGRAVE: I'd like to ask Dana a question. Dana, tell me something, does the White House really still feel like -- I know they took a lot of criticism that perhaps Iraq has become their Achilles heel. Do they still feel that way, is the criticism still out there?