Return to Transcripts main page

CNN Wolf Blitzer Reports

Grand Jury Hands Down 10-Count Indictment Against James Traficant; U.S. Voted Off U.N. Human Rights Panel

Aired May 04, 2001 - 20:00   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.
WOLF BLITZER, HOST: Tonight: he has a reputation as a colorful maverick.

(BEGIN VIDEO CLIP)

REP. JAMES TRAFICANT (D), OHIO: Unbelievable! Beam me up! The IRS doesn't need more money, Congress has got to abolish the IRS!

(END VIDEO CLIP)

BLITZER: Now he has a federal rap to beat. Congressman James Traficant of Ohio is indicted on corruption charges. We'll have a live report.

The pope makes a ground-breaking visit to Greece, hoping to heel a wound that goes back a millennium. We'll get an update from Athens.

And as unemployment soars and the White House worries about a weak economy, I'll discuss tax cuts, health care and the future of a political dynasty in part two of my interview with Senator Edward Kennedy.

Good evening. I'm Wolf Blitzer, reporting tonight from Washington.

It's not every day when a member of Congress is indicted by the Justice Department. Today, one of the most flamboyant, Democrat James Traficant of Ohio, was accused of 10 counts of corruption. Among the specifics: that he accepted illegal gifts in exchange for political favors. He says he's innocent and will fight. Given his reputation, that battle could be intense, and that's our top story.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The indictment comes as no surprise. In fact, for months, Congressman Traficant has been predicting the Justice Department move as he did only hours before receiving the indictment.

TRAFICANT: I'm as frightened as anyone can be in my position. I'm going to say this to the U.S. attorneys: you also have pressure. You must defeat me, because if I beat you, you'll be working in Mingo Junction. BLITZER: That's a small town in Ohio. The charges include bribery, tax evasion, obstruction of justice, conspiracy to defraud the government and racketeering. This, the result of a lengthy federal investigation into corruption and organized crime that has already ensnared two of Traficant's former associates.

The Justice Department says the nine-term congressman will be arraigned within two weeks, but will not be arrested. Traficant has a reputation for being combative.

(BEGIN VIDEO CLIP, OCTOBER 13, 1990)

TRAFICANT: Congress sold out! This is a damned house of political prostitutes!

(END VIDEO CLIP)

BLITZER: Though a Democrat, Traficant angered his own party by voting for Dennis Hastert to become House speaker. Still, other Democrats say the want the matter resolved quickly.

REP. MARTIN FROST (D), TEXAS: He's entitled to have his day in court, and the people that he represents are entitled to have a congressman who doesn't have a cloud over his head.

(END VIDEOTAPE)

BLITZER: For more on James Traficant, the charges against him and reaction here on Capitol Hill, I'm joined by CNN congressional correspondent Jonathan Karl.

Jon, is this more of an embarrassment for Democrats or Republicans? he's a Democrat who voted for the Republican speaker.

JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT: Well, James Traficant is a lifetime Democrat, but Democrats are very quick to point out: not only did he voted for the speaker, but the Republicans have courted him aggressively. Republicans last year in Congress helped funnel some $20 million in federal projects to Traficant's district. So, the spin from the Democrats here is that this is a Republican embarrassment.

BLITZER: How much support, how much sympathy is there for this colleague up there on Capitol Hill from Democrats and Republicans?

KARL: Well, in this matter, clearly Traficant's strongest support has come from the constituents back home, in Youngstown, Ohio, not from anybody up here on Capitol Hill.

Traficant is really a guy without a political home. When he voted for Hastert, the Democrats stripped him of all his committee assignments, and the Republicans didn't give him any assignments. As a matter of fact, he's the first member of Congress -- first member of the House to serve without a committee assignment since 1905. So, not much support either privately or publicly from members up here.

BLITZER: Now that he's been indicted, is there anything the Ethics Committee in the House can do?

KARL: Actually, there's nothing they can do right now. Generally, what the Ethics Committee does is it says they will not move forward with any investigation while there's pending criminal investigation. So this means unless Traficant is convicted, that actually the Ethics Committee will do nothing, and obviously, Wolf, he will not to be the first member of Congress to serve while under indictment.

BLITZER: OK. Jonathan Karl, here on Capitol Hill. Thank you very much

And from federal court to the court of international opinion: the United States, which has increasingly seen itself as a human rights watchdog, has suffered a startling diplomatic setback, getting bounced from its seat on the U.N. Human Rights Commission. Congress is now talking about payback instead of paying U.N. dues. More now from CNN State Department correspondent Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): Stunned, the Bush administration struggled to explain how after 54 years, the U.S. was suddenly without a seat on the United Nations Commission on Human Rights, an issue the U.S. has claimed as its own.

RICHARD BOUCHER, STATE DEPARTMENT SPOKESMAN: We did receive more than 40 assurances of support, but in the end we received only 29 votes.

KOPPEL: Privately, senior U.S. officials lay some of the blame on the Europeans for failing to, quote, "get their act together" and narrow the field of candidates from three European countries to two.

As a result, France, Austria, Sweden and the United States ran against each other for the same three seats. In addition, U.S. officials cite anger over perceived heavy handed lobbying last month by the U.S. against Cuba and China during the commission's meeting in Geneva and the $582 million the U.S. owes the U.N. in past dues, as adding to this anti-U.S. sentiment.

On Capitol Hill, where legislation on paying U.S. arrears could be voted on as soon as next week, many fear there could be a backlash. In fact, some lawmakers left little doubt who they blamed. "There's no surprise that a few European countries maneuvered in a secret vote to eliminate the United States from the U.N. Human Rights Commission," said Senator Jesse Helms in a written statement.

But European diplomats paint a different picture, pointing to a series of international agreements, including the Kyoto global warming protocol and the international criminal court of justice, as examples of treaties either rejected or not adhered to by the United States. The message to the Bush administration, say some U.N. watchers, unilateral decisions have consequences.

BILL STUEBNER, U.N. ASSOCIATION OF THE U.S.: It also, though, is kind of a wake-up call that we cannot always assume that people are going to go along with us.

KOPPEL (on camera): Administration officials are dismayed that Sudan, Iran and Cuba, all openly opposed to the U.S., are commission members. But what the U.S. fears, officials say, are that its European allies will increasingly vote as a block, putting their own interests first.

Andrea Koppel, CNN, the State Department.

(END VIDEOTAPE)

BLITZER: Pope John Paul II is undertaking another historic mission, seeking to end 1,000 years of hostility between Roman Catholics and Orthodox Christians.

CNN's Jim Bittermann reports from Athens.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): Once again, the Vatican spokesman said, Pope John Paul II shows he does not just live history, but directs it. And from the moment he disregarded the protests of some here and kissed Greek soil, it was clear the pope was intent on leading 225 million Orthodox and one billion Catholic believers into a new era.

Where just two months ago there was such hostility even the papal spokesman believed such a trip unthinkable, now the pope and Greek Archbishop Christodoulos were at least opening a dialogue. Their differences go back 1,000 years, when the Christian church split into Eastern and Roman branches, and the pope's crusaders tried forcibly to bring the Orthodox back into the fold.

Eastern church leaders can count many other grievances over the centuries. Said Christodoulos: "Until now, there has not been heard even a single request for pardon." But then, just moments later, John Paul tried to make a clean breast of things by asking forgiveness for all sins of omission and commission by Roman Catholics against Orthodox believers.

It was a mea culpa that brought immediate applause from the Greek archbishop and his fellow churchmen. And later, John Paul pleaded for an end to divisions among religions.

POPE JOHN PAUL II: The Catholic church is irrevocably committed to the path of unity with all the churches.

BITTERMANN: Later, the Greek Orthodox archbishop told reporters privately he was pleased with the way his meetings with the pope had gone. "He has been very kind to us," Christodoulos said, "now, much work remains to be done."

Some of the work that has already been done became apparent as the sun was setting over Athens. On the very spot where the Bible says the apostle Paul first preached the Christian gospel, the two church leaders shared a joint declaration on the Christian roots of Europe, condemning all recourse to violence, proselytism and fanaticism in the name of religion.

Threats from ultraconservative Orthodox believers to disrupt the day-long show of unity never materialized.

(on camera): This weekend, the Greek archbishop travels to Moscow, where he will no doubt relay an assessment of the pope's visit to Patriarch Alexy II of Russia, and perhaps pave the way for one of John Paul's loftiest goals: a trip by a Catholic pontiff to the Orthodox heart of Russia.

Jim Bittermann, CNN, Athens.

(END VIDEOTAPE)

BLITZER: Up next: will they stay on the job in Hollywood? There's been a development. Also, nationwide troubling figures on unemployment. Is the economy still looking for a bottom? And I'll talk about tax cuts, health care and a family legacy in part two of my interview with Senator Edward Kennedy.

(COMMERCIAL BREAK)

BLITZER: Welcome back. It looks like the new television season will get written, after all. Hollywood's writers and studios announced a tentative contract agreement about an hour ago, heading off a strike that would have stopped the cameras and crippled the Los Angeles economy.

(BEGIN VIDEO CLIP)

MICHAEL MAHERN, WRITERS GUILD NEGOTIATOR: In all, writers have gained $41 million over the three year term of this contract, and over $90 million by the sixth year. The best economic package that the writers guild has achieved since 1977.

(END VIDEO CLIP)

BLITZER: Even though the Writers Guild did not get everything it wanted, negotiators have unanimously recommended the union's 11,000 members approve the deal.

Here in Washington the White House today said President Bush remains very concerned about the strength of the economy. This, after the Labor Department reported that April unemployment was up two tenths of a point to 4.5 percent: 223,000 jobs were lost last month, 104,000 of them in manufacturing, and 64,000 in construction. With the jobless rate now at its highest level in two-and-a-half years, many analysts expect the Federal Reserve to cut interest rates once again, when it meets May 15th.

Looking for another economic stimulus, the White House today urged Congress to complete its work on the budget, which includes a compromise version of President Bush's multiyear tax cut. In part two of our interview, Democratic Senator Edward Kennedy makes clear he's not happy with the numbers.

(BEGIN VIDEOTAPE)

BLITZER: Senator, let's talk about some of the money issues out there. The president looks like he's going to get most of the across- the-board tax cut that he wants. The Republicans have agreed on $1.35 trillion, the president initially wanted 1.6 trillion, but he's going to get most. It's a lot more than you want.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Well, I'm not interested in mortgaging our country's future and our economy. I'm very much concerned that with the excessive kinds of tax reductions, we won't have the resources both to ensure the protections for Social Security and Medicare and have an effective prescription drug program, meet our national security, invest in our children, who are really our future.

I think we can't afford a more modest type of tax reduction. But I think this one is excessive and I think it is targeted in the wrong direction. I would have liked to have seen some relief, for example, for workers in terms of credit on a payroll tax. The fact is, the upper incomes are the ones that have benefited the most over the period of the last 8 or 10 years. They're the ones that are going to benefit with regards to the income tax. It's the workers that have not really benefited to the greatest extend. They've been paying the payroll tax, and working longer harder over this period of time. Both members of their family working.

If we had provided at least some relief for them, for example some credit in terms of payroll tax it would have been fairer.

BLITZER: But the bottom line is, the people who pay the most in taxes are the ones that are going to get a lot of the benefit. Wouldn't that be the fairest thing?

KENNEDY: Well, that's not exactly so, because 43 percent goes to the top 1 percent. And the estimates I've seen, although, some of the Republicans on the tax -- Republican leaders show contrary, they only pay in about 24-25 percent. Most of the studies that I've seen in the joint economic committee otherwise would show that that is askew. The point is to try and make it fair. They are the ones that have really benefited. I think it is excessive, myself.

BLITZER: But at this point it's moot because it's going to get passed.

KENNEDY: It's going to be passed, that's right.

BLITZER: So, there's going to be...

KENNEDY: Well, that's true. And it's very clear we ought to -- I was one of 11 members of the Senate that voted against 1981 President Reagan's tax cut that moved us to $4 1/2 trillion in deficit, increased the interest on the debt from $40 billion to $350 billion. That $350 billion, they happened to be in the control and they had the Republican president at that.

BLITZER: Just to button up that, because I want to move on.

KENNEDY: OK.

BLITZER: Republicans say it was the Democrats who caused an explosion in spending.

KENNEDY: They had the president and the estimate -- if you will look at it -- President Reagan's budget was higher than what was agreed to by the Democrats in every one of those years.

BLITZER: But didn't those tax cuts, the Reagan tax cuts generate the kink of economic growth that was such an important step from the Jimmy Carter democratic administration?

KENNEDY: No, well we had -- at that time -- we had high interest rates. But the idea that every family that was buying a car were paying higher interest rates. Everyone that was sending a child to school was paying -- everyone who was paying the mortgage were paying higher interest rates and they weren't getting the tax breaks under that program. That was skewed to the wealthiest. That was then, this is now.

BLITZER: All right, let's move on to another issue right now that's on your agenda: The patients bill of rights. You teamed up with John McCain, a Republican, for your version, but it looks like, on this issue, as opposed to education, you're not really getting a whole lot of cooperation, you're not working very closely with the White House, with the president on this issue.

They argue that what you have in mind would cause an explosion of lawsuits by patients and it would be a big win for the lawyers, not necessarily for the American people.

KENNEDY: Five years ago we introduced that legislation. Every day that goes on without a patient's bill of rights, people are suffering. People are suffering and they're being harmed in the health care system, because Doctors aren't making the decision. The bean counters, untrained professionals, that are interested in the bottom line and not the patient are making the decisions. That's wrong. That's happening.

Eight weeks now since the president announced he's going to veto that bill. And we are going to come back at it and again and again until we get this bill passed. The fact is, the president accepted a patient's bill of rights in Texas. There's only been four or five law cases. Our bill is not greatly different from the bill in terms of the protection and the guarantees that they have in Texas. And all of the states, there are 26 million American who are covered today with the liability provisions and there's virtually no excessive charge because they have liability protections -- none, zero, nada.

BLITZER: Thirty-nine years in the Senate, you seem to be still enjoying it. Are you?

KENNEDY: I am. I've enjoyed working with this president, I enjoy working with our colleagues. I plan to stay in the Senate until I get the hang of it.

BLITZER: You're the leader of a political dynasty. How's the next generation...

KENNEDY: There are a lot of them going on. And my sisters are saying, couldn't we be like the United Way, you know, where they just have one contribution and it's distributed to all the candidates because there's so many of them. But I'm proud of them. The fact that they want to become involved in public service.

So many of them are involved in public service not necessarily electable office and doing great works. But the others that want to run, I'm proud of them and I know in the Robert Kennedys with regards to Max, his father would be proud of him as he would be of Kathleen as well as he would have been of Joe, so -- and it's really a lot of fun to have them in the neighborhood.

BLITZER: And I'm sure your brother John would have been proud too.

KENNEDY: Absolutely,

BLITZER: Thank you for joining us.

KENNEDY: Thanks very much.

(END VIDEOTAPE)

BLITZER: Up next, bringing a damaged spy plane home from China one way or the other. And no more chads in Florida. Stay with us for details of high-tech election upgrades.

(COMMERCIAL BREAK)

BLITZER: Welcome back. In other top stories, U.S. inspectors say a damaged surveillance plane can be repaired and flown off of China's Hainan Island. But China may not allow it. Pentagon officials say the Chinese would prefer the plane be cut up and shipped back. It's been on the island since making an emergency landing April 1st, after colliding with a Chinese jet.

Travelers are used to strict security at airports. Now Washington will take a new step to fight terrorism. Officials tell CNN the administration will create an Office of National Preparedness. It will coordinate existing efforts, which currently involve 46 agencies, and prepare for the consequences of any terrorist attack. But the administration rejects calls for appointment of a so-called anti-terrorism czar.

Tonight on the "Leading Edge," Florida lawmakers approved a plan today to replace voting machines around the state. Soon the precincts will have to decide between two new technologies.

CNN's David George has more.

(BEGIN VIDEOTAPE) DAVID GEORGE, CNN CORRESPONDENT (voice-over): Florida voters will switch to either optical scanners, or if certified...

UNIDENTIFIED MALE: You vote your ballot.

GEORGE: Touch-screen technology in time for the 2002 elections. Researchers from MIT and Caltech have been studying voting methods since the Florida vote count debacle.

They say that while optical scanners can jam while counting multiple ballots, small scanners in individual polling places offer an added degree of safety, by giving voters one more chance to check their ballots before they're tallied.

PROF. STEPHEN ANSOLABEHERE, MIT: That's a very, very important part of preventing people from making mistakes.

GEORGE: If the state approves, Florida counties will have the option of going with touch-screen voting stations resembling ATM machines. Though the MIT-Caltech researchers warn that in the past four presidential elections, touch-screen systems were right up there with punch cards, when it came to producing spoiled and unmarked ballots. In other words, touch-screen voting needs work.

Nevertheless, Florida's Palm Beach County, famous for the hanging chad, has already indicated an interest in going to touch screens, if the state certifies touch-screen voting.

David George, CNN.

(END VIDEOTAPE)

BLITZER: Up next, I'll open our mailbag. One of you thinks I've become a victim of the Bush charm offensive. I'll explain when we come back. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Time now to open our mailbag. Lots of e-mail on President Bush. Beverly writes this: "Wolf, why do you assume everyone falls for the supposed Bush charm just because you, the press and the media have? Just shows you how much smarter we are than you and your buddies."

Timothy writes from Michigan: "Is the bad economy Bush's fault? The media will say yes, but I say no because the economy started failing when Clinton was in office."

Finally, this note from Janis on our story about suicide prevention: "Suicide is tragic. The effect it has on the surviving friends and family is often unending. America must protest the effect of managed care on the delivery of psychiatric treatment if we hope to make a difference."

Remember, I want to hear from you. You can e-mail me at: wolf@cnn.com. And you can read my daily on-line column and sign up for my daily e-mail previewing our nightly programs by going to our WOLF BLITZER REPORTS Web site, cnn.com/wolf.

Please stay with CNN throughout the night. Virginia Harris, the head of the Christian Science Church, is Larry King's guest at the top of the hour. I'll see you Sunday on "LATE EDITION." Among my guests: House Democratic Leader Richard Gephardt, and Deputy Defense Secretary Paul Wolfowitz. That's Sunday at Noon Eastern.

Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. "THE POINT" with Greta Van Susteren begins right now.

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