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CNN Wolf Blitzer Reports
Iraqis Celebrate Over Saddam's Hearing; Military Families Asked to Leave Bahrain; Rocket Hits Baghdad Hotel; Bush: Jobs Numbers Mean Steady Growth; Marlon Brando Dead of Lung Failure
Aired July 02, 2004 - 17:00 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.
JOHN KING, HOST: Happening now, gathering threat. A terror concern for Americans abroad and caution here at home.
Stand by for WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)
KING (voice-over): Saddam in shackles. You saw his defiance. Now, the pictures you didn't see.
No restraints on Iraq's insurgents. Another bold attack in Baghdad.
New jobs numbers. Are they all they were cracked up to be?
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our economy is strong and is getting stronger.
KING: But is employment growth slowing? I'll ask Commerce Secretary Don Evans.
Brando: the name alone conjures up unforgettable images.
MARLON BRANDO, ACTOR: Stella!
Good sweetheart. You're a sweetheart.
KING: The passing of a legend.
(END VIDEOTAPE)
ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, July 02, 2004.
KING: Thanks for joining us. I'm John King in Washington. Wolf is off today.
A day after Baghdad's new leaders started squaring accounts with the old regime, Iraq's insurgents signaled they're still waging an all-out war for the country's future. For Americans, terror concerns extend beyond the borders of Iraq.
We'll go live to our Baghdad bureau chief, Jane Arraf, and to our senior Pentagon correspondent, Jamie McIntyre, but we begin with Saddam Hussein in chains. Here's CNN's Zain Verjee.
ZAIN VERJEE, CNN CORRESPONDENT: John, celebration, exhilaration and humiliation, words used today to describe, really, the spectrum of Iraqi emotions on seeing Saddam Hussein treated as nothing but a common criminal.
The images made available today make his most recent appearance even more dramatic.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): These are pictures you didn't see: the defiant ex-dictator in shackles, escorted by guards, being freed from handcuffs before entering the secret courtroom.
A day later, images of the president-turned-prisoner still dominated the country's conversation.
In Kazimiyah, just outside of Baghdad, Shias call for the execution of Saddam, who they say brutally suppressed their majority sect in favor of his fellow Sunnis.
But in Samara, near Saddam's hometown, a demonstration in support of the ex-president.
Loyalists fire guns and wave rocket-propelled grenades as they chant a once familiar refrain: "We will sacrifice ourselves for you, Saddam."
To them, he's still the president, something Saddam himself still believes.
Pool reporter John Burns says Saddam is in denial, and refuses to grasp reality.
JOHN BURNS, "THE NEW YORK TIMES": Saddam Hussein feels that presenting himself, as he did as the president of Iraq, that he can attack the coalition and its position here at its weakest point. And there's no doubt that that's quite effective.
VERJEE: It's also a key part of the overall defense strategy.
ZIAD NGJDAWI, SADDAM'S LAWYER: First of all, this court is not legal. The officials of the Iraqi government, who are employed by the American occupation military groups, are not legal.
VERJEE: But officials of the new Iraqi government see it differently.
FEISAL ISTRABADI, IRAQI GOVERNMENT ADVISER: He is no longer president. Even if he had immunity, the immunity would only have been valid during his presidency.
Whether or not the invasion or the war was legal has nothing to do with the gassing of the Kurds, or the Enfal Campaign, or the butchering of the people of Iraq for 35 years.
(END VIDEOTAPE)
VERJEE: John, analysts say the challenge now facing the new Iraqi government is this: How do you bring Saddam Hussein to justice without angering the Sunni community in Iraq who are already concerned of Shia domination -- John.
KING: You say that's a concern, Zain. But isn't it inevitable that the Sunnis or the Shiites will feel alienated, depending on how this turns out and how it proceeds?
VERJEE: Well, the interim prime minister, Ayad Allawi is a secular Shia. So it's really unlikely that he'd win the support of every single faction in Iraq, including the militant Shia factions.
Mr. Allawi recognizes this. He's already making efforts, for example, to include former Ba'athists who are mostly Sunni in the government and the civil service, really trying to reassure the Sunni community and push an agenda of national reconciliation -- John.
KING: Zain Verjee in Atlanta. Zain, thank you very much.
Iraq's insurgents, some of them, still loyal to Saddam Hussein, are fighting on. The latest attack, a bold rocket salvo in the heart of Baghdad.
Let's go now live to our bureau chief, Jane Arraf -- Jane.
JANE ARRAF, CNN CORRESPONDENT: I've just lost the audio, I'm afraid.
KING: Jane, can you hear us now? It's John King in Washington. Can you hear me?
OK, we'll put -- put that one together, come back to Jane in just a moment.
There's concern that terrorists may target Americans in the Persian Gulf region. For what it means for families of U.S. military personnel living in Bahrain, let's turn now to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.
JAMIE MCINTYRE, CNN CORRESPONDENT: Well, John, concerned by intelligence that there could be attack against Americans in Bahrain and also angry that the Bahraini government may have fumbled the ball with some al Qaeda suspects.
The U.S. is giving dependents -- military dependents in Bahrain a chance to come home voluntarily. But Pentagon officials insist it's not an evacuation.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): Pentagon sources say the U.S. will give more than 500 military dependents the option of leaving Bahrain, because of credible intelligence the tiny Persian Gulf state could be the next site of a terrorist kidnapping or other attack against Americans.
Also, U.S. officials are irked that six people suspected of links to al Qaeda, arrested by Bahrain June 22, were released the next day for lack of evidence.
A senior State Department official told CNN, the six were bad guys and that their release has left the U.S., quote, "quite concerned about Bahrain's commitment to fight terror."
A State Department travel warning, issued July 1, pointedly says, "Credible information indicates that extremists remain at large, and are planning attacks in Bahrain."
The U.S. has some 4,500 military personnel stationed in Bahrain, which is the headquarters of the U.S. Navy's 5th Fleet. While there are no plans to withdraw any U.S. troops or curtail military operation, bringing families home would reduce the number of so-called soft targets, which are increasingly the target of terrorists.
Bahrain is just a short drive over a causeway from neighboring Saudi Arabia, where so far this year, five American civilians have been murdered, including Paul Johnson, an Apache helicopter engineer employed by Lockheed Martin, who was beheaded in Saudi Arabia June 18.
(END VIDEOTAPE)
MCINTYRE: Under the Pentagon plan just signed this afternoon, any dependent or nonessential personnel in Bahrain who wants to leave, can leave. Anyone that wants to stay can stay. Anyone that leaves can't go back. And the U.S. won't be sending any new military dependents.
While the United States isn't happy with Bahrain for letting those al Qaeda suspects go, Bahrain isn't happy, either, with the United States for taking a step that signals the country is not safe for Westerners -- John.
KING: Jamie McIntyre at the Pentagon. Jamie, thank you.
We think we've worked out our technical gremlins. We want to go now back to Baghdad, to the latest on the violence today and our Baghdad bureau chief, Jane Arraf -- Jane.
JANE ARRAF, CNN CORRESPONDENT: John, it wasn't the most intensive attacks, but it was certainly one of the closest. And because it was so close, this essentially was the anatomy of a rocket attack.
Very early this morning rockets were fired in the direction of this hotel complex. One of them hit a nearby hotel, the one right next to us. No serious injuries there. But a second rocket hit a hotel that's used by the former coalition, injuring at least two Iraqis. Now these are launched from the back of a mini bus. Six of them didn't fire, but two of them did. The mini bus itself exploded, and this was right across the square.
Again, attacks like this go on virtually every day all over this city, but this one actually unfolded in front of us.
As for the big attacks that people were expecting here, and they were expecting major violence around these landmark days, those didn't materialize. We spoke to Lieutenant General Ricardo Sanchez, winding up his tour of duty here, and he says he believes they managed to thwart some of those attacks.
(BEGIN VIDEO CLIP)
LT. GEN. RICARDO SANCHEZ, U.S. ARMY: I think there were some operations that we conducted, and coupled with the early transfer of sovereignty, I think that was effective in creating a little bit of instability on the part of the insurgents. And that's good news.
By no means are they done. We believe that they will continue to strike at the political process. They will continue to strike at the basic infrastructure of the country. And we've got to defeat them.
(END VIDEO CLIP)
ARRAF: And some more good news. Three hostages who had been held by two different groups, two Turkish citizens and a Pakistani truck driver, working for a subsidiary of KBR, have been released. They were threatened with beheading and they are now home safely -- John.
KING: Always nice to hear some positive news. Jane Arraf, live for us in Baghdad. Thank you, Jane.
And here at home, new unemployment numbers are in. Are they good news for the Bush administration or good news for the Democrats? We'll try to find out.
The Fourth of July weekend is under way. Will America be safe?
Also ahead...
(BEGIN VIDEO CLIP)
BRANDO: Hey, Stella!
(END VIDEO CLIP)
KING: Remembering the troubled, but brilliant, actor behind Stanley Kowalski, or Don Corleone and many other classic movie roles, Marlon Brando.
(COMMERCIAL BREAK)
KING: New unemployment numbers are out from the Labor Department. With the backdrop of the November election and an extremely close race for the White House, they're getting extra scrutiny.
CNN's Elaine Quijano is here now with a look at the numbers and how both sides are spinning them -- Elaine.
ELAINE QUIJANO, CNN CORRESPONDENT: Hello, John.
Democrats called the new numbers a disappointment. But here at White House, President Bush, talking to small business owners, said Americans need to look at the overall signs, and say they point to an economy that is headed in the right direction.
(BEGIN VIDEOTAPE)
BUSH: Our fellow citizens...
QUIJANO (voice-over): Steady and strong, that's how President Bush sees the economy even after new job growth numbers that fell short of economists' predictions.
BUSH: After all, we've been through a recession, a national emergency, a war, corporate scandals, and all of that means it's been a difficult period of time, yet we're strong. We're getting stronger.
QUIJANO: Friday's Labor Department numbers, 112,000 new jobs created in June, amount to less than half of what analysts had forecast. But the Bush administration maintains, thanks to its economic policies, the bigger picture is rosier than that smaller snapshot, citing ten consecutive months of job growth with 1.5 million new jobs created.
BUSH: To me, that shows a steady growth. It's one thing to be reporting, you know, the GDP numbers are up. It's another thing to be able to say, more Americans are working.
QUIJANO: Yet, Democrats read the numbers as a sign the economic glass is half empty. The president's Democratic rival, John Kerry, counters the new jobs created don't balance the jobs lost since President Bush took office.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: More than a million Americans who were working three years ago have lost their jobs, and the new jobs that are finally being created are paying on average $9,000 less than the jobs that we're losing.
But guess what? As the wages go down, your healthcare cost is going up, your tuitions are going up, your bills are going up.
(END VIDEOTAPE)
QUIJANO: As for President Bush, today he repeated a call to Congress for help in strengthening the economy by making tax cuts permanent, adopting a national energy policy and reducing what the administration calls frivolous lawsuits -- John. KING: Elaine, as you know, the White House has been complaining for months, saying what they believe to be improving economic news has been overshadowed by the violence in Iraq, by the prisoner abuse scandal.
Now that sovereignty has been transferred to the new government, do they think they turned the corner or do they just hope?
QUIJANO: Well, certainly, they are hoping at this point. At this point in the game, it's still so far out from the election that obviously that is a big hope for them, that Americans will get past some of those negative images.
As you know, John, they went -- they held that news conference in the East Room where the president took questions on Iraq, some difficult questions where he was asked if he felt he made a mistake.
It was a difficult time, and the administration felt at that moment it was necessary for the president to come out and address the nation to cut through some of the clutter, they called it, at the time.
They're hoping some of this good economic news will begin to seep out as well.
KING: Elaine Quijano at the White House. Thank you very much, Elaine.
And John Kerry had even more to say on today's new jobless numbers. Campaigning in Minnesota, he told supporters there's more to the figures than meets the eye. And he said America can do better.
(BEGIN VIDEO CLIP)
KERRY: I don't know how many of you saw the job release just this past month: 112,000 jobs created. Less, again, than the 150,000 they promised. Less than the 250,000 that they produced before, which was beginning to inch up.
But we lost 45,000 jobs, so it's a net 67,000 jobs.
Don't tell the people getting those second-rate jobs, don't tell the people working two or three jobs at a time that we can't do better. We have a million and a half jobs lost, and I don't believe that's the best that we can do.
(END VIDEO CLIP)
KING: Earlier I talked about the new jobless numbers, the economy and more with the secretary of commerce, Don Evans.
(BEGIN VIDEOTAPE)
KING: Commerce Secretary Don Evans, thanks for joining us today.
Help me sort this out. You say half full, ten consecutive months of job growth. Democrats say more than half empty, that this economy has lost 1.8 million private sector jobs in the Bush administration.
DON EVANS, COMMERCE SECRETARY: Well, John, there's more American workers today than ever in the history of our country, and since August of 2003, we've added some 1.5 million jobs. The trend is -- job creation trend is very, very strong right now.
Unemployment, which peaked at 6.3 percent, is now at 5.6 percent. 5.6 percent is below the average unemployment level of the 1970s and the 1980s and the 1990s.
When you look at the economy broadly, like interest rates being at 45-year lows, inflation in check, disposable and personal income going up or take-home pay going up, you just have to conclude that this is a very powerful and strong economy.
KING: This debate is taking place three months from the election, sir. As you well know, in some of the big battleground states, where this will be fought out, the manufacturing economy's a big issue, and it has been hurting: Ohio, Michigan, Illinois, Iowa, West Virginia.
Eleven thousand jobs lost in the manufacturing sector last month, after four months of modest gains. What happened?
EVANS: Well, you know, John, we've got to look at the trend. And the trend is very positive. We've created some 64,000 new manufacturing jobs since the first of the year.
The manufacturing index remains very, very strong. It came out again yesterday above 60, which is a very strong number. It's been above 60 for the last eight months.
As I talked to manufacturers in those states you've mentioned, as well as manufacturers all across America, they're very confident about the economy, they're very confident in their business. Most of them that I talked to are hiring workers.
And so I think there's just every reason to continue to believe that this economy is headed in right direction under this president's leadership.
KING: You say headed in right direction. As you well know, if you look at the polling, Americans aren't quite convinced of that yet. Still a sense of unease.
And now they're about to see a modest increase if they have an adjustable rate mortgage, if they have a credit card tied to prime. Interest rates are going up a bit. Are you worried about that?
EVANS: Not at all, John. You know, you need to keep it all in perspective. The average interest rate of the last 30 years was seven percent. When president enters office the interest rate was 6.5 percent. The fed cut it 13 times, down to one percent. They just increased it to 1.25 percent.
And so when you look at the average of seven percent interest over the last 30 years and moved it from 1 to 1.25 percent, doesn't seem to me it's going to have any dampening effect on our economy.
(END VIDEOTAPE)
KING: Here's your turn to weigh in on this important story. Our Web question of the day is this: "Is the U.S. economy improving?" You can vote right now at CNN.com/Wolf. We'll have the results later in the broadcast.
And the answer to the big question could come anytime now. Who will John Kerry pick as his running mate? Political analyst Carlos Watson joins us with the inside edge.
High level, high stakes talks. A surprise meeting between the United States and North Korea.
Plus, remembering one of the greats. The tumultuous life and legendary career of Marlon Brando.
(COMMERCIAL BREAK)
KING: He's been called reclusive and eccentric, influential and one of the greats. Just speaking his name, conjures not only those images, but some of the immortal roles of Hollywood and Broadway. We learned this morning that Marlon Brando died last night at a Los Angeles hospital.
CNN's Miguel Marquez is in L.A. with the story -- Miguel.
MIGUEL MARQUEZ, CNN CORRESONDENT: Yes, he died at UCLA Medical Center last night of lung failure, John. Even though he had had health problems for years, his personal attorney, David Seeley, says that his family was caught off guard with this, calling it unexpected.
(BEGIN VIDEOTAPE)
MARQUEZ (voice-over): An interview and a kiss from 1994 capturing the eccentricity and humor of Marlon Brando.
BRANDO: There isn't anything that pays you as much money as acting while you are deciding what the hell your going to do with yourself.
MARQUEZ: Brando, through his acting, became an icon.
BRANDO: Stella!
MARQUEZ: His 1951 portrayal of Stanley Kowalski in "A Streetcar Named Desire" put Brando on the Hollywood star map and inspired generations of actors to act naturally.
BRANDO: There's more to this than I thought, Charlie.
MARQUEZ: Nominated for Academy Awards eight times, he won twice, his first for playing washed up fighter Terry Malloy in the 1954 film, "On the Waterfront."
BRANDO: And if, by chance, an honest man like yourself should make enemies, then they would become my enemies.
MARQUEZ: His second Oscar came for his portrayal of "The Godfather" in 1972. In protest of the treatment of Native Americans, he refused to accept the award, sending a messenger instead. Actress Maria Cruz dressed the part of a Native American.
Controversy followed Brando's fame, his roles as tough guys and losers, perhaps a reflection of his personal life.
BRANDO: To regret is useless in life. So long to the past. The only moment we have is right now.
MARQUEZ: In 1991, Brando's son Christian, the oldest of nine children from three marriages, pled guilty to manslaughter after killing the boyfriend of his half-sister.
Brando was back in the spotlight, a light he said he loathed.
(END VIDEOTAPE)
MARQUEZ: Now Mr. Brando's attorney also says that the family is now considering whether to do a private or a public ceremony for the actor. And they are leaning toward a private ceremony for the Omaha, Nebraska native -- John.
KING: Miguel Marquez for us in Los Angeles.
This just in to CNN, a statement from the president of the United States on the death of Marlon Brando. President Bush saying, "With the passing of Marlon Brando, America has lost a great actor of the stage and screen." Mr. Bush saluting his award-winning performances and saying that "Laura and I send our prayers and condolences to his family and friends."
Again, that statement just in from President Bush.
They are crucial to Iraq's reconstruction, but they're also targets for violence. Up next, civilian contractors juggling the cost of profits against the cost of protection.
Plus ticket top: it's the political buzz in Washington circles, who will be John Kerry's running mate? Find out who's topping the list.
And later, focusing on the Fourth. Big celebrations means tight security. We'll tell you what's being done to help keep you safe.
(COMMERCIAL BREAK)
KING: Welcome back. Coming up, we're going to look into U.S. efforts to rebuild Iraq and find out why it's taking so much time and taxpayer money.
But first, a quick check of the latest headlines.
A setback for Ralph Nader. The independent candidate failed to make the ballot in Arizona. A campaign spokesman says Nader needed just under 15,000 signatures to make the ballot in the state, but fell short by more than 500. Thousands of signatures were disallowed after a legal challenge by the Democratic Party.
A rocket attack and more losses for the United States in Iraq. Two Iraqis were wounded in the rocket attack on a hotel in Baghdad. Several other rockets in the same attack failed to go off.
Three U.S. Marines and a soldier were killed in the last 24 hours, bringing to 862 the number of U.S. forces killed in Iraq. Two Marines died near the Sunni stronghold of Fallujah. Another marine was killed in the same province today and a soldier died in a land mine explosion in Mosul.
And the U.S. army has filed criminal charges against four soldiers. They are accused of forcing two Iraqis to jump from a bridge over the Tigris River. The charges stem from an incident last January when an Iraqi detainee drowned and another was assaulted.
It's not just the soldiers in the line of fire in Iraq. Workers for civilian contractors are living a life filled with danger. And as CNN national correspondent Bob Franken reports many have decided the financial rewards are worth the risk.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): They are there in harm's way. An estimated 20,000 American civilians of fortune. It is lucrative. A truck driver can easily make $80,000 a year, twice what he'd make at home. His mechanic, up to $100,000. A bodyguard can get $1,000 plus a day and accommodations and per diems often tax free. But now there are new reasons to head for somewhere safe to spend that money.
MICHAEL O'HANLON, BROOKINGS INSTITUTION: We're going to have to find some way to keep private citizens in Iraq doing these jobs even at some risk to themselves.
FRANKEN: About 85 have been killed. They do work, critical the U.S. hopes, for reconstruction at utility plants whose start-up has been stopped by violence, at the oil fields, so essential to Iraq's economy, so inviting as targets to Iraq's insurgents. Many civilians are pulling out, up to 20 percent going away for a few weeks. But the workforce is expected to increase nearly 50 percent.
KENN KURTZ, CEO, STEELE FOUNDATION: A lot of that construction effort is driven by money and profit. And I think that it's hard for some of these contractors to walk away from such significant opportunities.
FRANKEN: With significant opportunity for profits comes significant cost for protection. Already about $5 billion. And insurance premiums, ten times normal so far. Danger has its price. And so does uncertainty.
RICHARD BOUCHER, STATE DEPT. SPOKESMAN: Our military and our embassy will work very closely together along with the Iraqis and their security forces to try to ensure the safety of the people of Iraq and people who are working in Iraq.
FRANKEN: The private contractors will keep the same legal immunity from Iraqi laws for their official duties that they had before the handover. What also stays the same is the ever-present fear of violence. Bob Franken, CNN, Washington.
(END VIDEOTAPE)
KING: Partially because of the danger to workers, efforts to rebuild Iraq's infrastructure are way behind schedule. Even though Congress earmarked almost $18.5 billion for reconstruction last year, most of that money remains unspent. Retired Rear Admiral David Nash is director of the office that manages the money and Wolf Blitzer spoke with him earlier.
(COMMERCIAL BREAK)
WOLF BLITZER, HOST, WOLF BLITZER REPORTS: Admiral Nash, thanks very much for joining us. Welcome to our program. Let's get right to the, what, $18 billion the U.S. Congress has appropriated to rebuild, reconstruction projects. You've only spend a few hundred million so far. Is security the major obstacle standing in the way?
REAR ADMIRAL DAVID NASH, IRAQ PROGRAM MANAGEMENT OFFICE: Well, not really. It's a concern, but we've already committed half of that money and we've obligated a third of it. So some of the reports of very little money being obligated really aren't quite accurate. Security's a challenge but...
BLITZER: Let me interrupt for a second, Admiral. It's one thing to commit or to obligate funds. It's another thing to actually begin the projects and get construction going whether it's water or electricity or health care or whatever. Is that right?
NASH: That's correct. And we've got $600 million worth of construction already in place. We're putting in about $50 million a week. By the fall time it will probably be close to $50 million a day. So construction's like that. It starts slow and then builds up very rapidly.
BLITZER: Do these workers who are going to be engaged in all of these various projects out there whether building hospitals or schools or whatever, do they have the security that is required in order to let them go ahead and do their jobs?
NASH: Yes, sir. I believe so. We're working hard at security taking care of our people. We're also working hard at employing Iraqis. We have 25,000 Iraqis working today and every day on our projects. And so far we've had no real serious problems. We've had some motored rockets, that sort of stuff, but we're continuing to work because the people of Iraq have told me that we must start our work or security won't improve.
BLITZER: Does the $18 billion that's been appropriated, does the security cost to provide security for the workers, the construction workers, the electricians, or whatever, does that money, the security funds come from that $18 billion pot?
NASH: Yes, they do. It's a part of the cost of the contract. So it's figured in as we go. So what we say to -- particularly to the Iraqis when we're asking them to help us with security, the less money we put in security, the more we can put into bricks and mortar.
BLITZER: Any idea at this point what percentage is going to security and what percentage is actually going to what you call bricks and mortar?
NASH: I don't think so. A lot of people try to make a guess at what the percentage is. What I always say is it's up to the enemy to decide what the cost of security will be. We can manage everything else. I think we have to wait a little bit until we see how the program's executing to really be able to answer that question intelligently.
BLITZER: You say that a lot of Iraqis are working on these projects already. U.S. contractors are getting most of the contracts, I assume. Are you still preventing some of those countries that didn't participate in the so-called coalition of the willing like France and Germany from participating in the bids for those contracts?
NASH: No, not really. The restrictions were for the prime contracts and it wasn't just large American firms that got the prime contracts. There were other countries whose firms got the contracts. Any country except one who sponsors terrorism can participate in our subcontracts, can participate in contracts for some of the goods and services that we're buying along with the construction.
BLITZER: So -- but some of those other allies are still barred from bidding in what you call the prime contracts, is that right?
NASH: Well, the prime contracts were just capacity contracts that were put in place and they're doing their work through subcontractors. So (UNINTELLIGIBLE) various countries can bid for those contracts and they have. And we have many different countries working as subcontractors. We're really focused, though, on building the construction industry for the Iraqis and employing Iraqis. We're trying to get a balance for everybody.
BLITZER: One final question, Admiral. Are you winning over, in your opinion, the hearts and minds of the Iraqi people? Because that was the purpose of all of this U.S. taxpayer funding, the $18 billion.
NASH: It's always hard to say. I've just finished visiting all 18 governance meeting with all 18 governors and their councils and talking to a lot of Iraqis and they all seem to me, very appreciative of the gift from the people of the United States. The other thing I've been noticing recently, we're getting very positive press in the Iraqi media here. So which is surprising to me. But it's very, very pleasing.
BLITZER: Admiral Nash, good luck to you and all your colleagues over there. Stay safe. Thanks very much for joining us.
NASH: Thank you.
(END VIDEOTAPE)
KING: Iraq is taking centerstage but lurking in the wings still is the nuclear threat posed by North Korea. Secretary of State Colin Powell has been holding talks with his North Korean counterpart on that difficult issue. The discussions have been taking place on the sidelines of a regional security conference in Indonesia. CNN's Jakarta bureau chief Maria Ressa reports.
(BEGIN VIDEOTAPE)
MARIA RESSA, CNN CORRESPONDENT (voice-over): It was the highest level of diplomatic contact ever between this U.S. administration and North Korea. For 20 minutes Colin Powell met with North Korea's foreign minister Paek Nam Sun at the sidelines of the security forum of ASEAN, the Association of South East Asian Nations. The unscheduled meeting was encouraged by many foreign ministers here because they say the way to peace is to minimize North Korea's isolation.
JOSE RAMOS-HORTA, EAST TIMOR FOREIGN MINISTER: They feel the hostility of the rest of the world, particularly the United States. So this kind of forum is really helpful, very educational and help break the ice and the psychological barriers.
RESSA: Two years ago also at an ASEAN meeting, Powell had a cup of coffee with his North Korean counterpart. This year the meeting was more formal although Powell said there was an opportunity for concrete progress, he also downplayed the initiative.
COLIN POWELL, SECRETARY OF STATE: All we did in that discussion was to reaffirm the positions that both sides took at the six-party talks last week.
RESSA: North Korea, for its part, toned down its anti-U.S. rhetoric.
CHUNG SONG-IL, NORTH KOREAN SPOKESMAN (through translator): Both sides agreed in principle to establish trust which we are lacking. We agreed to that in principle so the atmosphere at the meeting was good.
RESSA: The one thing North Korea and the U.S. agreed on today is that there is a lot of distrust between them. But observers here point out that direct, high-level meetings like this can do a lot to break down that barrier. Maria Ressa, CNN, Jakarta.
(END VIDEOTAPE)
KING: The United States this week stepped up pressure on Communist Cuba with new restrictions on travel and on financial ties among families but Cuba is suggesting the new policies might backfire on President Bush. Our Havana bureau chief Lucia Newman reports.
(BEGIN VIDEOTAPE)
LUCIA NEWMAN, CNN HAVANA BUREAU CHIEF (voice-over): The same day Washington's new measures tightening the embargo on Cuba went into effect, President Fidel Castro seemed more interested in enjoying a good tango at the Argentine embassy.
According to Castro, the new restrictions on family visits and remittances to Cuba could cost President George Bush his re-election.
PRESIDENT FIDEL CASTRO, CUBA (through translator): I'll just say that I think President Bush was ill-advised when he adopted these measures that go against his political interest.
NEWMAN: In a rare encounter with foreign journalists Castro joked he'd be sorry to see President George Bush lose.
CASTRO (through translator): Because we like having adversaries. We're going to miss him, especially since he's one of the ones who has threatened us the most.
NEWMAN: Many ordinary Cubans, though, are more concerned about what might happen if Washington makes good on its vow to broadcast TV Marte into Cuba from a U.S. C-130 aircraft.
(on camera): Some are afraid that Cuba may respond by interfering with commercial broadcasts in much of the Southern United States which it has the capability of doing. And that Washington could retaliate with force.
(voice-over): Castro wouldn't tell CNN what he'd do if TV Marte was successfully beamed into Cuba.
CASTRO (through translator): All of our responses will be intelligent. We don't use threats, we simply say we'll defeat anything they try against us.
NEWMAN: And like a soldier, eager for a fight, Castro left, defiant in the face of Washington's newest efforts to accelerate the downfall of his communist regime. Lucia Newman, CNN, Havana.
(END VIDEOTAPE)
KING: The anticipation is building and the guessing game in overdrive: Who will share the Democratic ticket with John Kerry? Carlos Watson has a few ideas. And he'll tell us next on the "Inside Edge."
Plus, stepped up patrols and heightened alert: The FBI issues a bulletin for the holiday weekend.
Well get to that, but first a quick look at other news making headlines around the world.
(voice-over): Car bomb in Turkey's heavily Kurdish southeastern region killed at least 3 people, and injured 24 others. The local governor's car was damaged, but the governor escaped injury. Mission to Africa: U.N. Secretary-General Kofi Annan took a firsthand look at the refugee crisis in Northern Africa, and he warned it could get worse. Human rights groups say more than 1 million Sudanese blacks have been forced out of their homes by government backed Arab militias. Sudan calls those reports overblown.
Summer Pulse '04: What's described as a ground breaking U.S. Navy exercise has started. The Harry S. Truman is one of 7 air craft carrier groups involved in a global test of the new fleet response plan designed to keep more carriers deployed for quick action.
Spanish help: After pulling out of Iraq, the Spanish government plans to send more troops to join coalition forces in Afghanistan. They'll help bolster security leading up to scheduled September elections.
That's our look around the world.
(COMMERCIAL BREAK)
KING: Authorities across the country will be keeping a watchful eye on Fourth of July celebrations again this year. But despite recently voiced concerns about new terror attacks, officials say there's no reason for undue alarm. CNN Homeland security correspondent Jeanne Meserve has our report.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Symbolic events drawing large crowds mean big security this Fourth of July. But the display of red, white and blue will not move yellow to orange.
TOM RIDGE, HOMELAND SECURITY SECRETARY: Even though there is credible reporting that talks about intent, it talks about desire, we are not going to raise the threat level. I mean, it's just not there yet.
MESERVE: In other word, there are no specifics about time, place and method of attack. Although the preelection train bombings in Madrid have amplified worries about al Qaeda strikes in the run-up to the U.S. elections.
RIDGE: And there's nothing suggest that this particular weekend is a weekend that they targeted some activity. They would strike when they're ready to strike.
MESERVE: In a Fourth of July bulletin to law enforcement, the FBI warns that infrastructure, including refineries, subways and dams could be targeted by small arms equipped assault teams, truck bombs or suicide bombers. It urges police to step up patrols and watch for surveillance activities.
In New York City, extra precautions are being taken in lower Manhattan where a cornerstone will be laid at the site where the Twin Towers once stood. But in many cities, the heightened securities around big events has become almost routine. And the public, too, seems to have adapted. Air travel is up to pre-9/11 levels and the attorney general says, that is as it should be.
JOHN ASHCROFT, ATTORNEY GENERAL: I don't think people should be panicked and people shouldn't be paralyzed. People should expect to do in this year what they planned to do. My family and I plan to celebrate the Fourth of July. We have been traveling. My wife and I have our children have been traveling.
MESERVE (on camera): People who come to the national celebration here on the Washington Mall will have their bags checked, and see a lot of police and security. But that is the new normal for an event of this magnitude and importance. Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE)
KING: A July surprise? As the mercury climbs, Carlos Watson tells us who's getting hotter on the campaign trail.
They're led by a singing secretary of state, you could call them the Global Village People.
(COMMERCIAL BREAK)
KING: It's Friday, and that means time to check in with CNN political analyst Carlos Watson. He is not -- good dig, joining us today from our San Francisco Bureau, escaping the heat of the east. Carlis, this is supposed to be John Kerry's month. We'll get the V.P. choice within a matter of days, perhaps, the convention at the end of the month. Will he jump up now in the polls?
CARLOS WATSON, CNN POLITICAL ANALYST: You certainly hope so, John. I think this would be a successful month if he ends up by some ten points. All along, people have said this is an incredibly weak incumbent president. His approval numbers in the low 40s at this point. And yet John Kerry hasn't opened up a lead.
There's hope that on the V.P. selection, which could come next week, that he might see a 4, 5, 6, or maybe even a double digit bump. Al Gore provided an 11-point bump to Bill Clinton in 1992.
And then secondly, there could be a second bump when the convention comes. So, this should be a good month for John Kerry, the month of July.
KING: You mentioned the potential bump, 5 or 6 points versus 11 points. In the end, everyone always says, well the V.P. pick doesn't really matter. Is that how it will be judged, by what kind of a bump he gets?
WATSON: I think ultimately, we'll obviously look state to state. And so therefore you hear people talking about Dick Gephardt maybe helping helping you in Missouri and maybe Iowa -- or rather Ohio. You hear people talking about whether or not John Edwards can help you in any particular state, or whether or not there's a good feeling there. I think, ultimately, it will matter state to state. And the midwest will be the place where you'll see the most attention paid.
KING: So if conventional wisdom is John Kerry bounces up in July, what do you see as things the president can do to perhaps mitigate the bounce?
WATSON: I think about two things, John, that he could do, which would be a little bit unexpected. On the domestic side, I could see a return to what he called compassion and conservatism. So, just yesterday you saw him talking about civil rights a little bit. Expect to hear more about education reform.
And then John, stay tuned over the next month, maybe the next two months, for a major White House announcement on healthcare. I would not be surprised at all to see the White House step forward and try to reclaim this issue as they go after independent voters in the center. That's what I see happening on the domestic side.
On the international side, you recall that on this program about 6 weeks ago we said that not France and Germany, but instead Russia would be super important to the president's opportunity to pass that U.N. Resolution and keep things moving along in Iraq and, therefore, keep his electoral chances here at home on at least OK ground.
I think now look for the Arab world to be important in this next version of make Iraq safe. And so you heard the king of Jordan yesterday say he might commit troops. But stay tuned to hear what Egypt says in terms of playing the role of a broker. Also look for possible financing by Kuwait and Saudi Arabia.
So I think that July and August, on the part of President Bush, will both have a domestic agenda and there will be substantive international efforts in order to try and keep this becoming a ten- point lead by John Kerry.
KING: Well, the Bush team has been complaining months that improving economic news gets lost in the fog of war. They think this week, they've transferred sovereignty, Saddam Hussein, the beginnings of those proceedings. They think, perhaps, they have turned the corner, and if he does focus on compassionate conservatism and a new healthcare initiative he can break through on domestic issue. Wishful thinking, or do we know the answer to that?
WATSON: We think we'll know the answer soon. But I got to tell you John, still, in my mind, the most impressive and important thing that President Bush's campaign has done has been a quiet effort, their grassroots campaign. The phone calls that they're making, thousands of them, the knocking on doors, the e-mails, the direct mails, even the radio advertising.
As much as people talk about the message, I think the fact that they're using additional media, if you will, in order to reach out to voters, I think that's an important part of the story. And that ultimately may allow them to transmit this new economic news and break through. KING: Carlos Watson, and the "Inside Edge" for us from San Francisco. Have a great Fourth of July weekend.
WATSON: Have a great weekend.
KING: Take care.
A not so subtle dance of diplomacy: Colin Powell and company bust a move. It's our picture of the day.
And our web question of the day is this, "Is the U.S. economy improving?" Vote right now, CNN.com/wolf is the place. The results for you when we come back.
(COMMERCIAL BREAK)
KING: Here's how you're weighing in on our web question of the day. Remember, we've been asking you, "Is the U.S. economy improving?" And look at this, 49 percent of you say yes, while 51 percent of you say no.
We always tell you, of course, this is not a scientific poll. But no wonder, the electorate split right now on the two candidates. You can continue to vote on our Web site, CNN.com/wolf.
Secretary of State Colin Powell is, we are sure, a serious man. But sometimes he likes to show off a different side.
(BEGIN VIDEO CLIP)
COLIN POWELL, SECRETARY OF STATE: Don't hold your breath for the E.U. RPMC it's got everything to (UNINTELLIGIBLE).
(END VIDEO CLIP)
KING: This was the scene at Pacific Rim Foreign Minister's Conference in Indonesia today, when Powell and other members of the U.S. delegation re-created the 1970's disco group The Village People. It's an annual tradition at the conference for normally dignified diplomats to sing and dance for their colleagues. No, it may not be an artistic achievement, but it's our picture of the day.
And a reminder, you can always catch WOLF BLITZER REPORTS weekdays at this time, 5:00 Eastern. And I'll be filling in for Wolf this Sunday on LATE EDITION. I'll speak, among our other guests, with John Kerry's daughter Vanessa about her father's run for the White House.
Until then, thanks for joining us. Have a great Fourth of July weekend. Please stay safe. "LOU DOBBS TONIGHT" starts 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
Aired July 2, 2004 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN KING, HOST: Happening now, gathering threat. A terror concern for Americans abroad and caution here at home.
Stand by for WOLF BLITZER REPORTS.
(BEGIN VIDEOTAPE)
KING (voice-over): Saddam in shackles. You saw his defiance. Now, the pictures you didn't see.
No restraints on Iraq's insurgents. Another bold attack in Baghdad.
New jobs numbers. Are they all they were cracked up to be?
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our economy is strong and is getting stronger.
KING: But is employment growth slowing? I'll ask Commerce Secretary Don Evans.
Brando: the name alone conjures up unforgettable images.
MARLON BRANDO, ACTOR: Stella!
Good sweetheart. You're a sweetheart.
KING: The passing of a legend.
(END VIDEOTAPE)
ANNOUNCER: This is WOLF BLITZER REPORTS for Friday, July 02, 2004.
KING: Thanks for joining us. I'm John King in Washington. Wolf is off today.
A day after Baghdad's new leaders started squaring accounts with the old regime, Iraq's insurgents signaled they're still waging an all-out war for the country's future. For Americans, terror concerns extend beyond the borders of Iraq.
We'll go live to our Baghdad bureau chief, Jane Arraf, and to our senior Pentagon correspondent, Jamie McIntyre, but we begin with Saddam Hussein in chains. Here's CNN's Zain Verjee.
ZAIN VERJEE, CNN CORRESPONDENT: John, celebration, exhilaration and humiliation, words used today to describe, really, the spectrum of Iraqi emotions on seeing Saddam Hussein treated as nothing but a common criminal.
The images made available today make his most recent appearance even more dramatic.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): These are pictures you didn't see: the defiant ex-dictator in shackles, escorted by guards, being freed from handcuffs before entering the secret courtroom.
A day later, images of the president-turned-prisoner still dominated the country's conversation.
In Kazimiyah, just outside of Baghdad, Shias call for the execution of Saddam, who they say brutally suppressed their majority sect in favor of his fellow Sunnis.
But in Samara, near Saddam's hometown, a demonstration in support of the ex-president.
Loyalists fire guns and wave rocket-propelled grenades as they chant a once familiar refrain: "We will sacrifice ourselves for you, Saddam."
To them, he's still the president, something Saddam himself still believes.
Pool reporter John Burns says Saddam is in denial, and refuses to grasp reality.
JOHN BURNS, "THE NEW YORK TIMES": Saddam Hussein feels that presenting himself, as he did as the president of Iraq, that he can attack the coalition and its position here at its weakest point. And there's no doubt that that's quite effective.
VERJEE: It's also a key part of the overall defense strategy.
ZIAD NGJDAWI, SADDAM'S LAWYER: First of all, this court is not legal. The officials of the Iraqi government, who are employed by the American occupation military groups, are not legal.
VERJEE: But officials of the new Iraqi government see it differently.
FEISAL ISTRABADI, IRAQI GOVERNMENT ADVISER: He is no longer president. Even if he had immunity, the immunity would only have been valid during his presidency.
Whether or not the invasion or the war was legal has nothing to do with the gassing of the Kurds, or the Enfal Campaign, or the butchering of the people of Iraq for 35 years.
(END VIDEOTAPE)
VERJEE: John, analysts say the challenge now facing the new Iraqi government is this: How do you bring Saddam Hussein to justice without angering the Sunni community in Iraq who are already concerned of Shia domination -- John.
KING: You say that's a concern, Zain. But isn't it inevitable that the Sunnis or the Shiites will feel alienated, depending on how this turns out and how it proceeds?
VERJEE: Well, the interim prime minister, Ayad Allawi is a secular Shia. So it's really unlikely that he'd win the support of every single faction in Iraq, including the militant Shia factions.
Mr. Allawi recognizes this. He's already making efforts, for example, to include former Ba'athists who are mostly Sunni in the government and the civil service, really trying to reassure the Sunni community and push an agenda of national reconciliation -- John.
KING: Zain Verjee in Atlanta. Zain, thank you very much.
Iraq's insurgents, some of them, still loyal to Saddam Hussein, are fighting on. The latest attack, a bold rocket salvo in the heart of Baghdad.
Let's go now live to our bureau chief, Jane Arraf -- Jane.
JANE ARRAF, CNN CORRESPONDENT: I've just lost the audio, I'm afraid.
KING: Jane, can you hear us now? It's John King in Washington. Can you hear me?
OK, we'll put -- put that one together, come back to Jane in just a moment.
There's concern that terrorists may target Americans in the Persian Gulf region. For what it means for families of U.S. military personnel living in Bahrain, let's turn now to our senior Pentagon correspondent, Jamie McIntyre -- Jamie.
JAMIE MCINTYRE, CNN CORRESPONDENT: Well, John, concerned by intelligence that there could be attack against Americans in Bahrain and also angry that the Bahraini government may have fumbled the ball with some al Qaeda suspects.
The U.S. is giving dependents -- military dependents in Bahrain a chance to come home voluntarily. But Pentagon officials insist it's not an evacuation.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): Pentagon sources say the U.S. will give more than 500 military dependents the option of leaving Bahrain, because of credible intelligence the tiny Persian Gulf state could be the next site of a terrorist kidnapping or other attack against Americans.
Also, U.S. officials are irked that six people suspected of links to al Qaeda, arrested by Bahrain June 22, were released the next day for lack of evidence.
A senior State Department official told CNN, the six were bad guys and that their release has left the U.S., quote, "quite concerned about Bahrain's commitment to fight terror."
A State Department travel warning, issued July 1, pointedly says, "Credible information indicates that extremists remain at large, and are planning attacks in Bahrain."
The U.S. has some 4,500 military personnel stationed in Bahrain, which is the headquarters of the U.S. Navy's 5th Fleet. While there are no plans to withdraw any U.S. troops or curtail military operation, bringing families home would reduce the number of so-called soft targets, which are increasingly the target of terrorists.
Bahrain is just a short drive over a causeway from neighboring Saudi Arabia, where so far this year, five American civilians have been murdered, including Paul Johnson, an Apache helicopter engineer employed by Lockheed Martin, who was beheaded in Saudi Arabia June 18.
(END VIDEOTAPE)
MCINTYRE: Under the Pentagon plan just signed this afternoon, any dependent or nonessential personnel in Bahrain who wants to leave, can leave. Anyone that wants to stay can stay. Anyone that leaves can't go back. And the U.S. won't be sending any new military dependents.
While the United States isn't happy with Bahrain for letting those al Qaeda suspects go, Bahrain isn't happy, either, with the United States for taking a step that signals the country is not safe for Westerners -- John.
KING: Jamie McIntyre at the Pentagon. Jamie, thank you.
We think we've worked out our technical gremlins. We want to go now back to Baghdad, to the latest on the violence today and our Baghdad bureau chief, Jane Arraf -- Jane.
JANE ARRAF, CNN CORRESPONDENT: John, it wasn't the most intensive attacks, but it was certainly one of the closest. And because it was so close, this essentially was the anatomy of a rocket attack.
Very early this morning rockets were fired in the direction of this hotel complex. One of them hit a nearby hotel, the one right next to us. No serious injuries there. But a second rocket hit a hotel that's used by the former coalition, injuring at least two Iraqis. Now these are launched from the back of a mini bus. Six of them didn't fire, but two of them did. The mini bus itself exploded, and this was right across the square.
Again, attacks like this go on virtually every day all over this city, but this one actually unfolded in front of us.
As for the big attacks that people were expecting here, and they were expecting major violence around these landmark days, those didn't materialize. We spoke to Lieutenant General Ricardo Sanchez, winding up his tour of duty here, and he says he believes they managed to thwart some of those attacks.
(BEGIN VIDEO CLIP)
LT. GEN. RICARDO SANCHEZ, U.S. ARMY: I think there were some operations that we conducted, and coupled with the early transfer of sovereignty, I think that was effective in creating a little bit of instability on the part of the insurgents. And that's good news.
By no means are they done. We believe that they will continue to strike at the political process. They will continue to strike at the basic infrastructure of the country. And we've got to defeat them.
(END VIDEO CLIP)
ARRAF: And some more good news. Three hostages who had been held by two different groups, two Turkish citizens and a Pakistani truck driver, working for a subsidiary of KBR, have been released. They were threatened with beheading and they are now home safely -- John.
KING: Always nice to hear some positive news. Jane Arraf, live for us in Baghdad. Thank you, Jane.
And here at home, new unemployment numbers are in. Are they good news for the Bush administration or good news for the Democrats? We'll try to find out.
The Fourth of July weekend is under way. Will America be safe?
Also ahead...
(BEGIN VIDEO CLIP)
BRANDO: Hey, Stella!
(END VIDEO CLIP)
KING: Remembering the troubled, but brilliant, actor behind Stanley Kowalski, or Don Corleone and many other classic movie roles, Marlon Brando.
(COMMERCIAL BREAK)
KING: New unemployment numbers are out from the Labor Department. With the backdrop of the November election and an extremely close race for the White House, they're getting extra scrutiny.
CNN's Elaine Quijano is here now with a look at the numbers and how both sides are spinning them -- Elaine.
ELAINE QUIJANO, CNN CORRESPONDENT: Hello, John.
Democrats called the new numbers a disappointment. But here at White House, President Bush, talking to small business owners, said Americans need to look at the overall signs, and say they point to an economy that is headed in the right direction.
(BEGIN VIDEOTAPE)
BUSH: Our fellow citizens...
QUIJANO (voice-over): Steady and strong, that's how President Bush sees the economy even after new job growth numbers that fell short of economists' predictions.
BUSH: After all, we've been through a recession, a national emergency, a war, corporate scandals, and all of that means it's been a difficult period of time, yet we're strong. We're getting stronger.
QUIJANO: Friday's Labor Department numbers, 112,000 new jobs created in June, amount to less than half of what analysts had forecast. But the Bush administration maintains, thanks to its economic policies, the bigger picture is rosier than that smaller snapshot, citing ten consecutive months of job growth with 1.5 million new jobs created.
BUSH: To me, that shows a steady growth. It's one thing to be reporting, you know, the GDP numbers are up. It's another thing to be able to say, more Americans are working.
QUIJANO: Yet, Democrats read the numbers as a sign the economic glass is half empty. The president's Democratic rival, John Kerry, counters the new jobs created don't balance the jobs lost since President Bush took office.
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: More than a million Americans who were working three years ago have lost their jobs, and the new jobs that are finally being created are paying on average $9,000 less than the jobs that we're losing.
But guess what? As the wages go down, your healthcare cost is going up, your tuitions are going up, your bills are going up.
(END VIDEOTAPE)
QUIJANO: As for President Bush, today he repeated a call to Congress for help in strengthening the economy by making tax cuts permanent, adopting a national energy policy and reducing what the administration calls frivolous lawsuits -- John. KING: Elaine, as you know, the White House has been complaining for months, saying what they believe to be improving economic news has been overshadowed by the violence in Iraq, by the prisoner abuse scandal.
Now that sovereignty has been transferred to the new government, do they think they turned the corner or do they just hope?
QUIJANO: Well, certainly, they are hoping at this point. At this point in the game, it's still so far out from the election that obviously that is a big hope for them, that Americans will get past some of those negative images.
As you know, John, they went -- they held that news conference in the East Room where the president took questions on Iraq, some difficult questions where he was asked if he felt he made a mistake.
It was a difficult time, and the administration felt at that moment it was necessary for the president to come out and address the nation to cut through some of the clutter, they called it, at the time.
They're hoping some of this good economic news will begin to seep out as well.
KING: Elaine Quijano at the White House. Thank you very much, Elaine.
And John Kerry had even more to say on today's new jobless numbers. Campaigning in Minnesota, he told supporters there's more to the figures than meets the eye. And he said America can do better.
(BEGIN VIDEO CLIP)
KERRY: I don't know how many of you saw the job release just this past month: 112,000 jobs created. Less, again, than the 150,000 they promised. Less than the 250,000 that they produced before, which was beginning to inch up.
But we lost 45,000 jobs, so it's a net 67,000 jobs.
Don't tell the people getting those second-rate jobs, don't tell the people working two or three jobs at a time that we can't do better. We have a million and a half jobs lost, and I don't believe that's the best that we can do.
(END VIDEO CLIP)
KING: Earlier I talked about the new jobless numbers, the economy and more with the secretary of commerce, Don Evans.
(BEGIN VIDEOTAPE)
KING: Commerce Secretary Don Evans, thanks for joining us today.
Help me sort this out. You say half full, ten consecutive months of job growth. Democrats say more than half empty, that this economy has lost 1.8 million private sector jobs in the Bush administration.
DON EVANS, COMMERCE SECRETARY: Well, John, there's more American workers today than ever in the history of our country, and since August of 2003, we've added some 1.5 million jobs. The trend is -- job creation trend is very, very strong right now.
Unemployment, which peaked at 6.3 percent, is now at 5.6 percent. 5.6 percent is below the average unemployment level of the 1970s and the 1980s and the 1990s.
When you look at the economy broadly, like interest rates being at 45-year lows, inflation in check, disposable and personal income going up or take-home pay going up, you just have to conclude that this is a very powerful and strong economy.
KING: This debate is taking place three months from the election, sir. As you well know, in some of the big battleground states, where this will be fought out, the manufacturing economy's a big issue, and it has been hurting: Ohio, Michigan, Illinois, Iowa, West Virginia.
Eleven thousand jobs lost in the manufacturing sector last month, after four months of modest gains. What happened?
EVANS: Well, you know, John, we've got to look at the trend. And the trend is very positive. We've created some 64,000 new manufacturing jobs since the first of the year.
The manufacturing index remains very, very strong. It came out again yesterday above 60, which is a very strong number. It's been above 60 for the last eight months.
As I talked to manufacturers in those states you've mentioned, as well as manufacturers all across America, they're very confident about the economy, they're very confident in their business. Most of them that I talked to are hiring workers.
And so I think there's just every reason to continue to believe that this economy is headed in right direction under this president's leadership.
KING: You say headed in right direction. As you well know, if you look at the polling, Americans aren't quite convinced of that yet. Still a sense of unease.
And now they're about to see a modest increase if they have an adjustable rate mortgage, if they have a credit card tied to prime. Interest rates are going up a bit. Are you worried about that?
EVANS: Not at all, John. You know, you need to keep it all in perspective. The average interest rate of the last 30 years was seven percent. When president enters office the interest rate was 6.5 percent. The fed cut it 13 times, down to one percent. They just increased it to 1.25 percent.
And so when you look at the average of seven percent interest over the last 30 years and moved it from 1 to 1.25 percent, doesn't seem to me it's going to have any dampening effect on our economy.
(END VIDEOTAPE)
KING: Here's your turn to weigh in on this important story. Our Web question of the day is this: "Is the U.S. economy improving?" You can vote right now at CNN.com/Wolf. We'll have the results later in the broadcast.
And the answer to the big question could come anytime now. Who will John Kerry pick as his running mate? Political analyst Carlos Watson joins us with the inside edge.
High level, high stakes talks. A surprise meeting between the United States and North Korea.
Plus, remembering one of the greats. The tumultuous life and legendary career of Marlon Brando.
(COMMERCIAL BREAK)
KING: He's been called reclusive and eccentric, influential and one of the greats. Just speaking his name, conjures not only those images, but some of the immortal roles of Hollywood and Broadway. We learned this morning that Marlon Brando died last night at a Los Angeles hospital.
CNN's Miguel Marquez is in L.A. with the story -- Miguel.
MIGUEL MARQUEZ, CNN CORRESONDENT: Yes, he died at UCLA Medical Center last night of lung failure, John. Even though he had had health problems for years, his personal attorney, David Seeley, says that his family was caught off guard with this, calling it unexpected.
(BEGIN VIDEOTAPE)
MARQUEZ (voice-over): An interview and a kiss from 1994 capturing the eccentricity and humor of Marlon Brando.
BRANDO: There isn't anything that pays you as much money as acting while you are deciding what the hell your going to do with yourself.
MARQUEZ: Brando, through his acting, became an icon.
BRANDO: Stella!
MARQUEZ: His 1951 portrayal of Stanley Kowalski in "A Streetcar Named Desire" put Brando on the Hollywood star map and inspired generations of actors to act naturally.
BRANDO: There's more to this than I thought, Charlie.
MARQUEZ: Nominated for Academy Awards eight times, he won twice, his first for playing washed up fighter Terry Malloy in the 1954 film, "On the Waterfront."
BRANDO: And if, by chance, an honest man like yourself should make enemies, then they would become my enemies.
MARQUEZ: His second Oscar came for his portrayal of "The Godfather" in 1972. In protest of the treatment of Native Americans, he refused to accept the award, sending a messenger instead. Actress Maria Cruz dressed the part of a Native American.
Controversy followed Brando's fame, his roles as tough guys and losers, perhaps a reflection of his personal life.
BRANDO: To regret is useless in life. So long to the past. The only moment we have is right now.
MARQUEZ: In 1991, Brando's son Christian, the oldest of nine children from three marriages, pled guilty to manslaughter after killing the boyfriend of his half-sister.
Brando was back in the spotlight, a light he said he loathed.
(END VIDEOTAPE)
MARQUEZ: Now Mr. Brando's attorney also says that the family is now considering whether to do a private or a public ceremony for the actor. And they are leaning toward a private ceremony for the Omaha, Nebraska native -- John.
KING: Miguel Marquez for us in Los Angeles.
This just in to CNN, a statement from the president of the United States on the death of Marlon Brando. President Bush saying, "With the passing of Marlon Brando, America has lost a great actor of the stage and screen." Mr. Bush saluting his award-winning performances and saying that "Laura and I send our prayers and condolences to his family and friends."
Again, that statement just in from President Bush.
They are crucial to Iraq's reconstruction, but they're also targets for violence. Up next, civilian contractors juggling the cost of profits against the cost of protection.
Plus ticket top: it's the political buzz in Washington circles, who will be John Kerry's running mate? Find out who's topping the list.
And later, focusing on the Fourth. Big celebrations means tight security. We'll tell you what's being done to help keep you safe.
(COMMERCIAL BREAK)
KING: Welcome back. Coming up, we're going to look into U.S. efforts to rebuild Iraq and find out why it's taking so much time and taxpayer money.
But first, a quick check of the latest headlines.
A setback for Ralph Nader. The independent candidate failed to make the ballot in Arizona. A campaign spokesman says Nader needed just under 15,000 signatures to make the ballot in the state, but fell short by more than 500. Thousands of signatures were disallowed after a legal challenge by the Democratic Party.
A rocket attack and more losses for the United States in Iraq. Two Iraqis were wounded in the rocket attack on a hotel in Baghdad. Several other rockets in the same attack failed to go off.
Three U.S. Marines and a soldier were killed in the last 24 hours, bringing to 862 the number of U.S. forces killed in Iraq. Two Marines died near the Sunni stronghold of Fallujah. Another marine was killed in the same province today and a soldier died in a land mine explosion in Mosul.
And the U.S. army has filed criminal charges against four soldiers. They are accused of forcing two Iraqis to jump from a bridge over the Tigris River. The charges stem from an incident last January when an Iraqi detainee drowned and another was assaulted.
It's not just the soldiers in the line of fire in Iraq. Workers for civilian contractors are living a life filled with danger. And as CNN national correspondent Bob Franken reports many have decided the financial rewards are worth the risk.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): They are there in harm's way. An estimated 20,000 American civilians of fortune. It is lucrative. A truck driver can easily make $80,000 a year, twice what he'd make at home. His mechanic, up to $100,000. A bodyguard can get $1,000 plus a day and accommodations and per diems often tax free. But now there are new reasons to head for somewhere safe to spend that money.
MICHAEL O'HANLON, BROOKINGS INSTITUTION: We're going to have to find some way to keep private citizens in Iraq doing these jobs even at some risk to themselves.
FRANKEN: About 85 have been killed. They do work, critical the U.S. hopes, for reconstruction at utility plants whose start-up has been stopped by violence, at the oil fields, so essential to Iraq's economy, so inviting as targets to Iraq's insurgents. Many civilians are pulling out, up to 20 percent going away for a few weeks. But the workforce is expected to increase nearly 50 percent.
KENN KURTZ, CEO, STEELE FOUNDATION: A lot of that construction effort is driven by money and profit. And I think that it's hard for some of these contractors to walk away from such significant opportunities.
FRANKEN: With significant opportunity for profits comes significant cost for protection. Already about $5 billion. And insurance premiums, ten times normal so far. Danger has its price. And so does uncertainty.
RICHARD BOUCHER, STATE DEPT. SPOKESMAN: Our military and our embassy will work very closely together along with the Iraqis and their security forces to try to ensure the safety of the people of Iraq and people who are working in Iraq.
FRANKEN: The private contractors will keep the same legal immunity from Iraqi laws for their official duties that they had before the handover. What also stays the same is the ever-present fear of violence. Bob Franken, CNN, Washington.
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KING: Partially because of the danger to workers, efforts to rebuild Iraq's infrastructure are way behind schedule. Even though Congress earmarked almost $18.5 billion for reconstruction last year, most of that money remains unspent. Retired Rear Admiral David Nash is director of the office that manages the money and Wolf Blitzer spoke with him earlier.
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WOLF BLITZER, HOST, WOLF BLITZER REPORTS: Admiral Nash, thanks very much for joining us. Welcome to our program. Let's get right to the, what, $18 billion the U.S. Congress has appropriated to rebuild, reconstruction projects. You've only spend a few hundred million so far. Is security the major obstacle standing in the way?
REAR ADMIRAL DAVID NASH, IRAQ PROGRAM MANAGEMENT OFFICE: Well, not really. It's a concern, but we've already committed half of that money and we've obligated a third of it. So some of the reports of very little money being obligated really aren't quite accurate. Security's a challenge but...
BLITZER: Let me interrupt for a second, Admiral. It's one thing to commit or to obligate funds. It's another thing to actually begin the projects and get construction going whether it's water or electricity or health care or whatever. Is that right?
NASH: That's correct. And we've got $600 million worth of construction already in place. We're putting in about $50 million a week. By the fall time it will probably be close to $50 million a day. So construction's like that. It starts slow and then builds up very rapidly.
BLITZER: Do these workers who are going to be engaged in all of these various projects out there whether building hospitals or schools or whatever, do they have the security that is required in order to let them go ahead and do their jobs?
NASH: Yes, sir. I believe so. We're working hard at security taking care of our people. We're also working hard at employing Iraqis. We have 25,000 Iraqis working today and every day on our projects. And so far we've had no real serious problems. We've had some motored rockets, that sort of stuff, but we're continuing to work because the people of Iraq have told me that we must start our work or security won't improve.
BLITZER: Does the $18 billion that's been appropriated, does the security cost to provide security for the workers, the construction workers, the electricians, or whatever, does that money, the security funds come from that $18 billion pot?
NASH: Yes, they do. It's a part of the cost of the contract. So it's figured in as we go. So what we say to -- particularly to the Iraqis when we're asking them to help us with security, the less money we put in security, the more we can put into bricks and mortar.
BLITZER: Any idea at this point what percentage is going to security and what percentage is actually going to what you call bricks and mortar?
NASH: I don't think so. A lot of people try to make a guess at what the percentage is. What I always say is it's up to the enemy to decide what the cost of security will be. We can manage everything else. I think we have to wait a little bit until we see how the program's executing to really be able to answer that question intelligently.
BLITZER: You say that a lot of Iraqis are working on these projects already. U.S. contractors are getting most of the contracts, I assume. Are you still preventing some of those countries that didn't participate in the so-called coalition of the willing like France and Germany from participating in the bids for those contracts?
NASH: No, not really. The restrictions were for the prime contracts and it wasn't just large American firms that got the prime contracts. There were other countries whose firms got the contracts. Any country except one who sponsors terrorism can participate in our subcontracts, can participate in contracts for some of the goods and services that we're buying along with the construction.
BLITZER: So -- but some of those other allies are still barred from bidding in what you call the prime contracts, is that right?
NASH: Well, the prime contracts were just capacity contracts that were put in place and they're doing their work through subcontractors. So (UNINTELLIGIBLE) various countries can bid for those contracts and they have. And we have many different countries working as subcontractors. We're really focused, though, on building the construction industry for the Iraqis and employing Iraqis. We're trying to get a balance for everybody.
BLITZER: One final question, Admiral. Are you winning over, in your opinion, the hearts and minds of the Iraqi people? Because that was the purpose of all of this U.S. taxpayer funding, the $18 billion.
NASH: It's always hard to say. I've just finished visiting all 18 governance meeting with all 18 governors and their councils and talking to a lot of Iraqis and they all seem to me, very appreciative of the gift from the people of the United States. The other thing I've been noticing recently, we're getting very positive press in the Iraqi media here. So which is surprising to me. But it's very, very pleasing.
BLITZER: Admiral Nash, good luck to you and all your colleagues over there. Stay safe. Thanks very much for joining us.
NASH: Thank you.
(END VIDEOTAPE)
KING: Iraq is taking centerstage but lurking in the wings still is the nuclear threat posed by North Korea. Secretary of State Colin Powell has been holding talks with his North Korean counterpart on that difficult issue. The discussions have been taking place on the sidelines of a regional security conference in Indonesia. CNN's Jakarta bureau chief Maria Ressa reports.
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MARIA RESSA, CNN CORRESPONDENT (voice-over): It was the highest level of diplomatic contact ever between this U.S. administration and North Korea. For 20 minutes Colin Powell met with North Korea's foreign minister Paek Nam Sun at the sidelines of the security forum of ASEAN, the Association of South East Asian Nations. The unscheduled meeting was encouraged by many foreign ministers here because they say the way to peace is to minimize North Korea's isolation.
JOSE RAMOS-HORTA, EAST TIMOR FOREIGN MINISTER: They feel the hostility of the rest of the world, particularly the United States. So this kind of forum is really helpful, very educational and help break the ice and the psychological barriers.
RESSA: Two years ago also at an ASEAN meeting, Powell had a cup of coffee with his North Korean counterpart. This year the meeting was more formal although Powell said there was an opportunity for concrete progress, he also downplayed the initiative.
COLIN POWELL, SECRETARY OF STATE: All we did in that discussion was to reaffirm the positions that both sides took at the six-party talks last week.
RESSA: North Korea, for its part, toned down its anti-U.S. rhetoric.
CHUNG SONG-IL, NORTH KOREAN SPOKESMAN (through translator): Both sides agreed in principle to establish trust which we are lacking. We agreed to that in principle so the atmosphere at the meeting was good.
RESSA: The one thing North Korea and the U.S. agreed on today is that there is a lot of distrust between them. But observers here point out that direct, high-level meetings like this can do a lot to break down that barrier. Maria Ressa, CNN, Jakarta.
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KING: The United States this week stepped up pressure on Communist Cuba with new restrictions on travel and on financial ties among families but Cuba is suggesting the new policies might backfire on President Bush. Our Havana bureau chief Lucia Newman reports.
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LUCIA NEWMAN, CNN HAVANA BUREAU CHIEF (voice-over): The same day Washington's new measures tightening the embargo on Cuba went into effect, President Fidel Castro seemed more interested in enjoying a good tango at the Argentine embassy.
According to Castro, the new restrictions on family visits and remittances to Cuba could cost President George Bush his re-election.
PRESIDENT FIDEL CASTRO, CUBA (through translator): I'll just say that I think President Bush was ill-advised when he adopted these measures that go against his political interest.
NEWMAN: In a rare encounter with foreign journalists Castro joked he'd be sorry to see President George Bush lose.
CASTRO (through translator): Because we like having adversaries. We're going to miss him, especially since he's one of the ones who has threatened us the most.
NEWMAN: Many ordinary Cubans, though, are more concerned about what might happen if Washington makes good on its vow to broadcast TV Marte into Cuba from a U.S. C-130 aircraft.
(on camera): Some are afraid that Cuba may respond by interfering with commercial broadcasts in much of the Southern United States which it has the capability of doing. And that Washington could retaliate with force.
(voice-over): Castro wouldn't tell CNN what he'd do if TV Marte was successfully beamed into Cuba.
CASTRO (through translator): All of our responses will be intelligent. We don't use threats, we simply say we'll defeat anything they try against us.
NEWMAN: And like a soldier, eager for a fight, Castro left, defiant in the face of Washington's newest efforts to accelerate the downfall of his communist regime. Lucia Newman, CNN, Havana.
(END VIDEOTAPE)
KING: The anticipation is building and the guessing game in overdrive: Who will share the Democratic ticket with John Kerry? Carlos Watson has a few ideas. And he'll tell us next on the "Inside Edge."
Plus, stepped up patrols and heightened alert: The FBI issues a bulletin for the holiday weekend.
Well get to that, but first a quick look at other news making headlines around the world.
(voice-over): Car bomb in Turkey's heavily Kurdish southeastern region killed at least 3 people, and injured 24 others. The local governor's car was damaged, but the governor escaped injury. Mission to Africa: U.N. Secretary-General Kofi Annan took a firsthand look at the refugee crisis in Northern Africa, and he warned it could get worse. Human rights groups say more than 1 million Sudanese blacks have been forced out of their homes by government backed Arab militias. Sudan calls those reports overblown.
Summer Pulse '04: What's described as a ground breaking U.S. Navy exercise has started. The Harry S. Truman is one of 7 air craft carrier groups involved in a global test of the new fleet response plan designed to keep more carriers deployed for quick action.
Spanish help: After pulling out of Iraq, the Spanish government plans to send more troops to join coalition forces in Afghanistan. They'll help bolster security leading up to scheduled September elections.
That's our look around the world.
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KING: Authorities across the country will be keeping a watchful eye on Fourth of July celebrations again this year. But despite recently voiced concerns about new terror attacks, officials say there's no reason for undue alarm. CNN Homeland security correspondent Jeanne Meserve has our report.
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JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): Symbolic events drawing large crowds mean big security this Fourth of July. But the display of red, white and blue will not move yellow to orange.
TOM RIDGE, HOMELAND SECURITY SECRETARY: Even though there is credible reporting that talks about intent, it talks about desire, we are not going to raise the threat level. I mean, it's just not there yet.
MESERVE: In other word, there are no specifics about time, place and method of attack. Although the preelection train bombings in Madrid have amplified worries about al Qaeda strikes in the run-up to the U.S. elections.
RIDGE: And there's nothing suggest that this particular weekend is a weekend that they targeted some activity. They would strike when they're ready to strike.
MESERVE: In a Fourth of July bulletin to law enforcement, the FBI warns that infrastructure, including refineries, subways and dams could be targeted by small arms equipped assault teams, truck bombs or suicide bombers. It urges police to step up patrols and watch for surveillance activities.
In New York City, extra precautions are being taken in lower Manhattan where a cornerstone will be laid at the site where the Twin Towers once stood. But in many cities, the heightened securities around big events has become almost routine. And the public, too, seems to have adapted. Air travel is up to pre-9/11 levels and the attorney general says, that is as it should be.
JOHN ASHCROFT, ATTORNEY GENERAL: I don't think people should be panicked and people shouldn't be paralyzed. People should expect to do in this year what they planned to do. My family and I plan to celebrate the Fourth of July. We have been traveling. My wife and I have our children have been traveling.
MESERVE (on camera): People who come to the national celebration here on the Washington Mall will have their bags checked, and see a lot of police and security. But that is the new normal for an event of this magnitude and importance. Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE)
KING: A July surprise? As the mercury climbs, Carlos Watson tells us who's getting hotter on the campaign trail.
They're led by a singing secretary of state, you could call them the Global Village People.
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KING: It's Friday, and that means time to check in with CNN political analyst Carlos Watson. He is not -- good dig, joining us today from our San Francisco Bureau, escaping the heat of the east. Carlis, this is supposed to be John Kerry's month. We'll get the V.P. choice within a matter of days, perhaps, the convention at the end of the month. Will he jump up now in the polls?
CARLOS WATSON, CNN POLITICAL ANALYST: You certainly hope so, John. I think this would be a successful month if he ends up by some ten points. All along, people have said this is an incredibly weak incumbent president. His approval numbers in the low 40s at this point. And yet John Kerry hasn't opened up a lead.
There's hope that on the V.P. selection, which could come next week, that he might see a 4, 5, 6, or maybe even a double digit bump. Al Gore provided an 11-point bump to Bill Clinton in 1992.
And then secondly, there could be a second bump when the convention comes. So, this should be a good month for John Kerry, the month of July.
KING: You mentioned the potential bump, 5 or 6 points versus 11 points. In the end, everyone always says, well the V.P. pick doesn't really matter. Is that how it will be judged, by what kind of a bump he gets?
WATSON: I think ultimately, we'll obviously look state to state. And so therefore you hear people talking about Dick Gephardt maybe helping helping you in Missouri and maybe Iowa -- or rather Ohio. You hear people talking about whether or not John Edwards can help you in any particular state, or whether or not there's a good feeling there. I think, ultimately, it will matter state to state. And the midwest will be the place where you'll see the most attention paid.
KING: So if conventional wisdom is John Kerry bounces up in July, what do you see as things the president can do to perhaps mitigate the bounce?
WATSON: I think about two things, John, that he could do, which would be a little bit unexpected. On the domestic side, I could see a return to what he called compassion and conservatism. So, just yesterday you saw him talking about civil rights a little bit. Expect to hear more about education reform.
And then John, stay tuned over the next month, maybe the next two months, for a major White House announcement on healthcare. I would not be surprised at all to see the White House step forward and try to reclaim this issue as they go after independent voters in the center. That's what I see happening on the domestic side.
On the international side, you recall that on this program about 6 weeks ago we said that not France and Germany, but instead Russia would be super important to the president's opportunity to pass that U.N. Resolution and keep things moving along in Iraq and, therefore, keep his electoral chances here at home on at least OK ground.
I think now look for the Arab world to be important in this next version of make Iraq safe. And so you heard the king of Jordan yesterday say he might commit troops. But stay tuned to hear what Egypt says in terms of playing the role of a broker. Also look for possible financing by Kuwait and Saudi Arabia.
So I think that July and August, on the part of President Bush, will both have a domestic agenda and there will be substantive international efforts in order to try and keep this becoming a ten- point lead by John Kerry.
KING: Well, the Bush team has been complaining months that improving economic news gets lost in the fog of war. They think this week, they've transferred sovereignty, Saddam Hussein, the beginnings of those proceedings. They think, perhaps, they have turned the corner, and if he does focus on compassionate conservatism and a new healthcare initiative he can break through on domestic issue. Wishful thinking, or do we know the answer to that?
WATSON: We think we'll know the answer soon. But I got to tell you John, still, in my mind, the most impressive and important thing that President Bush's campaign has done has been a quiet effort, their grassroots campaign. The phone calls that they're making, thousands of them, the knocking on doors, the e-mails, the direct mails, even the radio advertising.
As much as people talk about the message, I think the fact that they're using additional media, if you will, in order to reach out to voters, I think that's an important part of the story. And that ultimately may allow them to transmit this new economic news and break through. KING: Carlos Watson, and the "Inside Edge" for us from San Francisco. Have a great Fourth of July weekend.
WATSON: Have a great weekend.
KING: Take care.
A not so subtle dance of diplomacy: Colin Powell and company bust a move. It's our picture of the day.
And our web question of the day is this, "Is the U.S. economy improving?" Vote right now, CNN.com/wolf is the place. The results for you when we come back.
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KING: Here's how you're weighing in on our web question of the day. Remember, we've been asking you, "Is the U.S. economy improving?" And look at this, 49 percent of you say yes, while 51 percent of you say no.
We always tell you, of course, this is not a scientific poll. But no wonder, the electorate split right now on the two candidates. You can continue to vote on our Web site, CNN.com/wolf.
Secretary of State Colin Powell is, we are sure, a serious man. But sometimes he likes to show off a different side.
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COLIN POWELL, SECRETARY OF STATE: Don't hold your breath for the E.U. RPMC it's got everything to (UNINTELLIGIBLE).
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KING: This was the scene at Pacific Rim Foreign Minister's Conference in Indonesia today, when Powell and other members of the U.S. delegation re-created the 1970's disco group The Village People. It's an annual tradition at the conference for normally dignified diplomats to sing and dance for their colleagues. No, it may not be an artistic achievement, but it's our picture of the day.
And a reminder, you can always catch WOLF BLITZER REPORTS weekdays at this time, 5:00 Eastern. And I'll be filling in for Wolf this Sunday on LATE EDITION. I'll speak, among our other guests, with John Kerry's daughter Vanessa about her father's run for the White House.
Until then, thanks for joining us. Have a great Fourth of July weekend. Please stay safe. "LOU DOBBS TONIGHT" starts right now.
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