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CNN Wolf Blitzer Reports

Interviews with Iraqi Interim President Ghazi al-Yawar, Senator Diane Feinstein

Aired December 08, 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.


WOLF BLITZER, HOST: Happening now. A U.S. senator's outrage over Defense Secretary Donald Rumsfeld's comments on why American troops don't have enough protective armor yet in Iraq.
Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

(voice-over): Bombarded by the troops.

UNIDENTIFIED MALE: We're digging (UNINTELLIGIBLE) rusted scrap metal and compromised ballistic glass that has already been shot up, dropped, busted, picking the best out of this scrap to put on our vehicles to take into combat.

BLITZER: From lack of armor to long deployments. Rumsfeld is under fire.

Is Iran muscling in?

UNIDENTIFIED MALE: I am very concerned. There is a lot of Iranian interference.

BLITZER: Is another neighbor backing the insurgents? I'll ask Iraq's interim president Ghazi Al-Yawar.

Charging. Players and fans get called for a foul by prosecutors.

From doing time to showtime. Is reality TV next for Martha Stewart?

ANNOUNCER: This is WOLF BLITZER REPORTS for Wednesday, December 8, 2004.

(END VIDEOTAPE)

BLITZER: Defense Secretary Donald Rumsfeld in the hot seat, at least with some U.S. troops about to head into Iraq. Earlier today, he was hit with some pointed questions from soldiers, obviously, unhappy with their situation.

(BEGIN VIDEOTAPE) DONALD RUMSFELD, DEFENSE SECRETARY: Now, settle down, settle down. I'm an old man, and it's early in the morning. I'm gathering my thoughts here.

BLITZER (voice-over): Donald Rumsfeld was in Kuwait to give U.S. troops a pep talk. But he himself was peppered by some very pointed questions, including this one from a soldier who complained that military vehicles are not properly armored.

UNIDENTIFIED MALE: Now, why do we soldiers have to dig through local landfills for pieces of scrap metal and compromised ballistic glass to help armor our vehicles and why don't we have those resources readily available to us?

RUMSFELD: As you know, you go to war with the army you have, not the army you might want. Since the Iraq conflict began, the army has been pressing ahead to produce the armor necessary at a rate that they believe -- it's a greatly expanded rate from what existed previously, but a rate that they believe is the rate that is all that can be accomplished at this moment.

BLITZER: Rumsfeld also responded to a charge the regular army gets better equipment than National Guard and reserve units.

RUMSFELD: In any organization, you're going to have equipment and materials and spare parts of different ages, and I am told -- no way I can prove it, but I am told that the army is breaking its neck to see that there is not a differentiation as to who gets what aged materials in the military, in the army, as between the active force, the Guard, and the Reserve.

BLITZER: Another soldier asked about the so-called stop-loss policy which has allowed the Pentagon to indefinitely extend troops' tours of duty.

UNIDENTIFIED FEMALE: My husband and myself, we joined a volunteer army. Currently, I'm serving under the stop-loss program. I would like to know how much longer do you foresee the military using this program.

RUMSFELD: Stop-loss has been used by the military for years and years and years. It is all well understood when someone volunteers to join the service. It is something that you prefer not to have to use, obviously, in a perfect world, but if you think about it the whole principle is based on unit cohesion and the principle is that in the event that there's a -- something that requires a unit to be involved and people are in a personal situation where their time was ending, they put a stop-loss on it so that the cohesion can be maintained.

BLITZER: Despite the tough questions, Rumsfeld said he was pleased he could visit with the troops and he received a standing ovation as he finished.

(END VIDEOTAPE)

(on camera): But Donald Rumsfeld isn't getting any applause from at least one United States senator. Democrat Chris Dodd of Connecticut accuses the administration of a lack of concern about underequipped troops.

(BEGIN VIDEO CLIP)

SEN. CHRISTOPHER DODD (D), CONNECTICUT: The secretary of defense in a rather stunning comment, according to reports, said the following, "you go to war with the army you have." What's more shocking than this statement is the apparent lack of concern showed by the administration for the critical shortfalls of protective equipment and body armor so vitally important that these men and women are going to be able to complete their job.

(END VIDEO CLIP)

BLITZER: Proper equipment and the lack of it a huge concern for American forces in Iraq. For more on that, we're joined by our senior Pentagon correspondent, Jamie McIntyre. What are they saying about the percentage, Jamie, of vehicles in Iraq that don't necessarily have adequate armor?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, right now, they're saying when you talk about the humvees, they're saying 75 percent of them, three out of four, are armored, and then the ones that aren't armored, they're trying to use those only in areas where there's less of a threat. For instance, they say that this particular unit that's in Kuwait will not be driving unarmored humvees into Iraq when they move into Iraq. In fact, they'll be falling in on equipment that's already there, used by the soldiers there, replacing that includes armored humvees. They admit there's a shortfall, they're rushing to fill it. Meanwhile they are trying to make a smart use of the armor they have.

BLITZER: Senator Dodd mentions body armor. Do we know what percentage of the nearly 150,000 U.S. troops now in Iraq don't have adequate body armor?

MCINTYRE: That was a shortage last year. As of early this year, the army has been able to get body armor to every soldier in Iraq. The shortage was on some special ceramic plates that gave extra protection and, again, the army now says they've been able to get those to all of the soldiers. There was a time when they didn't all have them. They had to share them.

BLITZER: Something like Larry Di Rita, the Pentagon spokesman said in his briefing earlier today. He said when the country is at war, the war begins and then we start to mobilize. Raising questions, at least in my mind, the administration, Pentagon, knew they were going to go to war. Why not be ready in advance of the war?

MCINTYRE: Of course, the real secret is what this shows is it is a tacit admission that the Pentagon didn't anticipate the kind of insurgency going on. They didn't think they would need armored humvees for all the soldiers and they've had to go back now. Now, the comparison Larry Di Rita was trying to make was to World War II when the United States had to gear up after the war got started. As one of the reporters here pointed out, this was not a case where the U.S. -- they chose the timing and circumstances to go to war in Iraq, and in that case they can't quite use the excuse that they have to prepare after the war is already started.

BLITZER: One final question, Jamie. The suggestion that the National Guard reserve troops in Iraq serving the United States are second-class citizens, don't get the equipment, don't get the support that the regular forces get. What are you hearing about that? Because about 40 percent or so of the U.S. forces in Iraq are National Guard or reserve.

MCINTYRE: It is a widespread perception, including among some of the National Guard members. The leadership at the Pentagon, you heard Secretary Rumsfeld mention it in the piece you did. We talked to the head of the Guard unit here. He insists that's a myth, the National Guard troops get the same training, same level of equipment. He says if you go to Iraq, you can't tell the difference between a guard and active duty troop unless you ask them.

BLITZER: Jamie McIntyre, thanks very much.

CNN security watch. After weeks of wrangling the Senate has finally passed the intelligence reform bill based on recommendations from the 9/11 commission. Voting has just ended. The intelligence bill passed by a vote of 89-2. Among other things, it creates the office of a national intelligence director with a broad scope and powers to coordinate U.S. intelligence efforts. But what does this sweeping new legislation really mean for the nation's spy agencies? What does it mean for all of us? For answers, let's turn to our national security correspondent David Ensor.

DAVID ENSOR, CNN NATL. SECURITY CORRESPONDENT: Wolf, the intelligence reform bill promises major change, creating what could be a powerful new director of national intelligence. But experts say it raises more questions than it answers.

(BEGIN VIDEOTAPE)

DAVID KAY, FMR. CIA OFFICIAL: The real issue is, what is his relationship with all the 15 intelligence agencies? Who actually works for him? Where is the national intelligence council going to be? Who is going to brief the president every day? What's the bases for that? These are things that actually have to be worked out.

ENSOR: As it stands now, one man, Porter Goss, wears two hats. He is the CIA director and also the director of central intelligence, nominally in charge of all 14 other U.S. intelligence agencies as well as the national counterterrorism center that began operations Monday. Under the bill, a director of national intelligence replaces the DCI and is put over the top of a separate CIA director, the counterterrorism center and the 14 other agencies.

But the most important change has to do with these two agencies, the National Security Agency, the big ear of the U.S. government, the eavesdroppers and the National Geospacial Intelligence Agency, the big eye of the U.S. government that analyzes imagery from spy satellites. Right now though the intelligence director has nominal authority the Pentagon largely controls the budgets and personnel of these two crucial

ENSOR: the Pentagon largely controls the budgets and personnel of these 2 crucial spy agencies. Under the bill, a new intelligence director gains considerably more control, potentially shifting the balance of power in Washington.

FLYNT LEVERETT, BROOKINGS INSTITUTION: It's not the culmination, it's the beginning. And it gives a, hopefully, entrepreneurial first director of national intelligence some tools he might use to achieve real reform.

ENSOR: The bill also requires states to follow uniform standards for issuing drivers' licenses, to make them harder forge. It beefs up border guards, immigration agents and aviation security. And sets up an independent oversight board on civil liberties.

In the bill, Congress failed to reform itself, to address the overlapping web of more than 20 committees overseeing parts of U.S. intelligence.

DAVID KAY, FORMER CIA OFFICIAL: There's nothing in this bill that addresses the fiefdoms on the Hill. And that is going to be an issue that Congress has got to return to.

ENSOR: You think they punted on it?

KAY: Punt. At least you have contact when you punt. I think they ran away from it.

(END VIDEOTAPE)

ENSOR: Senior U.S. intelligence officials and outside analysts say the key will be who the president picks for intelligence chief. He or she must have credibility, communication skills, discretion, a thick skin and the absolute trust of the man in the White House. A tall order, Wolf.

BLITZER: You got any names? Hearing any significant short lists?

ENSOR: Porter Goss is obviously a candidate. There are others that are mentioned in the newspapers, ranging from Senator Joe Lieberman to various other people on Capitol Hill to some others in the executive branch. Frankly, I think there's only one man knows the answer now.

BLITZER: That would happen to be the president of the United States. David Ensor, we'll avoid the speculation until we know for sure. Porter Goss, the CIA director right now. Thanks very much, David.

To our viewers, here's your chance to weigh in on the story. Our web question of the day is this. "Would the intelligence overhaul bill make America safer?" You can vote right now. Go to CNN.com/wolf. We'll have the results later in this broadcast.

Both players and fans are now facing charges in the notorious basket brawl.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We feel we're very judicious in our charging decisions and attempt to decipher acts of retaliation from self- defense.

(END VIDEO CLIP)

BLITZER: Details ahead on who could get jail time.

Also, are Iraq's neighbors trying to influence the vote? I'll ask the country's interim president Ghazi Al-Yawer.

Plus, she still has months to serve in prison. But big plans under way and announced for Martha Stewart's major comeback. We'll show you what's in the works. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Five players and five fans were charged today in connection with last month's NBA basketball brawl in Michigan. CNN's Eric Phillips standing by with details -- Eric.

ERIC PHILLIPS, CNN CORRESPONDENT: Well Wolf, authorities in Oakland County, Michigan stress today that both the fans and the NBA players involved in that basket brawl are all responsible. However, the prosecutor was very direct in saying who he blames most.

(BEGIN VIDEOTAPE)

PHILLIPS: This scene from the November 19th brawl at the Pistons/Pacers game is etched in the minds of basketball fans and the public at large. The NBA stepped in immediately, suspending 4 Pacers players as a result of the disturbance. Now, several have been charged with crimes.

Jermaine O'Neal has been charged with two counts of misdemeanor assault and battery. While his teammates Ron Artest, Steven Jackson, Anthony Johnson and David Harrison were charged with one count.

Also, five fans have been charged in this brawl, one with a felony for throwing a chair. John Green is one of those charged. Authorities say it all started when he threw a drink at Ron Artest and Artest charged the stands.

DAVID GORCYCA, OAKLAND COUNTY PROSECUTOR: In my opinion, I would like to hold Mr. Green more accountable, because had not he thrown that cup and struck Artest, we wouldn't be here today.

PHILLIPS: The local police chief is hoping these charges send a strong message. CHIEF DOREEN OKLO, AUBURN HILLS POLICE: We hope that this incident can serve as a turning point to mark the return of sportsmanship and civilized conduct of players and of their fans at all levels of sport competition.

PHILLIPS: Authorities say NBA players are told to not enter the stands during games. And fans are cautioned that disturbing behavior could cause them to be ejected from the facility.

UNIDENTIFIED MALE: The fact that you have a ticket does not mean you have a license to harass or batter players, whether or not they enter into the -- off the playing area and into the spectator seating.

PHILLIPS: Authorities say more people could still be charged.

(END VIDEOTAPE)

PHILLIPS: Now, Wolf, tomorrow the players' association will be meeting with an arbitrator to see if those suspensions can either be lifted or greatly reduced. If they stick, they will cost players a combined total of more than $10 million in income -- Wolf.

BLITZER: Eric, what's the expectation tomorrow in that arbitration?

PHILLIPS: Well, it's kind of a convoluted situation, because the Players' Association will be going to meet with the arbitrator. But the NBA has refused so far to meet with one, saying they have total jurisdiction over the situation, that those suspensions will in fact stick.

So, the arbitrator really has two decisions to make. No. 1, does he have jurisdiction to make a decision in this instance? And if he does, No. 2, what that decision will be. Whether or not either of those decisions will be made is yet to be seen.

BLITZER: CNN's Eric Phillips reporting for us. Eric, thanks very much.

How long do U.S. forces need to stay in Iraq? Just one of the questions I'll ask the country's interim president, Ghazi al Yawer. Stand by for that.

Also, details of a promising new cancer drug. We'll tell you all about it.

And details also announced of Martha Stewart's return to TV. It's probably very different than what you may think. Our Mary Snow is standing by with all of the latest developments.

(COMMERCIAL BREAK)

BLITZER: Facing a raging insurgency, Iraqi leaders have their hands full trying to organize next month's election. Now, there's word Iran may be interfering in the process, trying to create another Islamic regime. Earlier I spoke with the Iraqi interim president, Ghazi al-Yawar, who is concerned with that prospect. Here is part one of my interview.

(BEGIN VIDEOTAPE)

BLITZER: You heard me report that maybe a million Iranians may have crossed the border into Iraq. And they are not only trying to influence the election, but they're going to vote.

GHAZI AL-YAWAR, IRAQI INTERIM PRESIDENT: I hope it won't happen. I mean, we have to be very careful. We are depending on the merit of our Iraqi people in the south, the Shiites in Iraq are not necessarily -- as a matter of fact, the majority are very skeptical of the Iranian role in Iraq.

BLITZER: That's not necessarily the case when you speak to some Shiites. They see themselves as part of the same group, Iraqi Shiites and Iranian Shiites. There seems to be a blurring of distinction.

AL-YAWAR: I'm talking about the vast majority of Iraqi Shiites. After all, they are Arab before becoming into a certain sect. Besides, we in Iraq we only have one platform that bring us all together, as the Iraqi identity. There is long -- deep in history, sensitivity between Iraq and Iran beyond the first Gulf War. It goes to 3,000 years ago, and Iraqis always have been -- are Iraqis.

BLITZER: When you take a look at the situation right now, how much longer do you believe U.S. forces will have to remain in Iraq?

AL-YAWAR: As long as it takes to -- until we have our qualified efficient Iraqi security forces, because the solution will be -- the final solution will be when we have our own qualified security forces. It's not impossible. It is very possible. Iraq is a country of a lot of human resources and capabilities. We can reinstate some of the old security forces who are carefully screened. We are adopting the right program right now. We should also depend on Iraqi ex-military generals whose are above any suspicion to be part of the rehabilitation recruitment for boosting up the morale of these people.

BLITZER: In hindsight, it was a mistake to disband the Iraqi military.

AL-YAWAR: Definitely it was a mistake. It was a mistake.

BLITZER: Who should bare responsibility for that blunder?

AL-YAWAR: Well, some Iraqi politicians who gave bad advice to whoever was in Iraq from the CPA...

BLITZER: Ambassador Paul Bremer.

AL-YAWAR: Also -- yes. Also, that doesn't mean whoever took the decision should not be blamed. It's a blame that both sides should share.

BLITZER: What about Syria? There were reports of U.S. military intelligence cited today in "The Washington Post," that the Syrians are allowing not only insurgents to cross in from Syria into Iraq, but they're financing, organizing. There's a much more active role from Syria than previously thought.

AL-YAWAR: Well, I think we're having insurgents coming from Syria. I'm not sure about Syria itself financing these people. I don't think they have all the resources to do so. But these people have all the money. They have a lot of cash, which they stole from Iraqi Central Bank before the collapse of the old regime. They are using their own money. The problem is Syria -- we think that is offering them a safe haven and shelter and they're operating from there.

BLITZER: Are insurgents also being financed by Saddam loyalists, exiles who are living in Jordan?

AL-YAWAR: I'm not sure about that, but if there are some of Saddam loyalists who are in any country in the world, I'm sure they are contributing to these criminals who are undermining our political -- trying to undermine our political life and harassing our people.

BLITZER: As far as Syria is concerned, and I want to be specific on this, do you see the government or the president Bashar Assad directly involved in trying to strengthen the insurgency against you and your government?

AL-YAWAR: I think some entities in the Syrian government are doing so. I'm not sure if the President Assad condones to that. I think he's a young reformist. That's my belief, my perception. But I think there entities within the Syrian government, especially some of the old guards who would be pleased to do so.

BLITZER: And the Iranian government, same thing?

Do you see a direct involvement from the government of Iran, President Khatami and others in trying to undermine what's happening -- what you want to see happen in Iraq?

AL-YAWAR: Well, it's too complicated, the issue in Iran. Everybody knows there's a government of Khatami who is a mature moderate, but there are very Revolutionary Guard and the (UNINTELLIGIBLE) who are operating 100 percent independent from him. Definitely whoever is trying to interfere in our business from the Iranian side related to the government, not necessarily to Mr. Khatami himself.

(END VIDEOTAPE)

BLITZER: More of my interview with Ghazi al-Yawar, that's coming up later this hour.

What he thinks President Bush should be doing in Iraq right now necessarily. Something not on his current list.

Also, a different side of Martha Stewart. Details of a plan for her post-prison TV show. That's just announced today.

Plus -- potentially serious health problems for another TV icon, and a New Year's Eve tradition, Dick Clark. We'll tell you all about it, what happened to him today.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Saddam Hussein on the stand. When will the former Iraqi dictator go on trial? New information from Iraq's interim president. We'll get to more of my interview with Ghazi al-Yawer.

First, though, a quick check of some other stories now in the news.

Women who have had breast cancer have a new first choice for treatment in their battle to keep the disease from returning. That's the finding of a new study. It says the drug Arimidex clearly outperforms tamoxifen at preventing breast cancer from returning. Tamoxifen revolutionized breast cancer treatment when it came into use three decades ago.

The man who is a fixture in American homes on New Year's Eve is recovering from a stroke. Pop music producer Dick Clark is in a Los Angeles hospital. A spokeswoman says the stroke was minor and the 75- year-old Clark is expected to be fine. Clark says he hopes to be back in Times Square in New York City to help usher in the new year. Good luck to Dick Clark. We wish him a speedy recovery.

Earlier, you heard Iraq's interim president voice concerns his nation's neighbors may be stirring up trouble. What does he think about the American role in Iraq?

Here's part two of my interview with Ghazi al-Yawer.

(BEGIN VIDEOTAPE)

BLITZER: While you're here, I want to tick through some issues and get your thoughts. For example, the latest allegations that U.S. military forces abused Iraqi prisoners during interrogations.

AL-YAWER: Well that would be very sad. I mean, after all, we always say that human lives are sacred wherever it is. It's very important to us, I think, to deal with issues in countries with different cultures in a certain way. We hope that whoever, if proven, committed these atrocities to be court marshaled as if he has abused the rights of an American citizen. After all, all human beings are equal.

BLITZER: So do you have confidence, in the U.S. military that they're investigating this and will get to the bottom of this?

AL-YAWER: They got to be doing that because this would be the wisest thing to do.

BLITZER: The Oil for Food scandal, which is being investigated at the United Nations, one U.S. Senator among others, Norm Coleman, says Kofi Annan should resign. Do you believe Kofi Annan should resign as Secretary General of the U.N. given what the allegations are as you know them right now?

AL-YAWER: Kofi Annan is a distinguished personality. He's been a U.N. Secretary General for many years. He's proven efficiency and quality and I think the man deserves to be understood well.

BLITZER: So he shouldn't resign?

AL-YAWER: I don't think so.

BLITZER: What about the Saddam Hussein trial? When is that going to start?

AL-YAWER: It will start soon after the elections but first, I think, it has to go with the subordinates and build evidence against Saddam. You have to build it from the sides to the center and definitely many people in Iraq can't wait to see that justice has been served.

BLITZER: Would you like to be the President of Iraq after the elections?

AL-YAWER: It's up to the Iraqi people really. I used to be a businessman before and I joined into this thing out of patriotic reasons and by god, I'm ready to do whatever the Iraqi people wish me to do so.

BLITZER: Sounds like you do want to be President of Iraq.

AL-YAWER: Well, I have a job unfinished and I think we all have to work together no matter whether in the National Assembly or in the presidency to serve our country, after all, what's the presidency if you don't have a country or you do not have a state? We are trying to build a strong, prosperous, democratic Iraq and that's what counts for me.

BLITZER: When -- I know we're out of time but when we meet a year from now, what will Iraq look like? Will people be able to walk around Baghdad freely? Will Americans be able to go out in the street without fear of being kidnapped and beheaded?

AL-YAWER: Well, why not? You see there's something very important. We are not fighting a Viet Cong, which have principles and have support -- popular support. We are fighting Saddam Loyalists who are shielding behind beards and the name of Allah and because they know they are fighting for a losing battle. The whole Iraqi population is against them, are sick and tired of them. I think one year from now, exactly, we will be very busy preparing for our free democratic election after ratifying our constitution.

BLITZER: Is there anything that you want President Bush and his administration to be doing that they're not doing right now?

AL-YAWER: Well, I hope that we can -- they can -- they work with us more closer with the Iraqis, and really try to empower more and more Iraqis in any aspect of life. It's very important that Iraqis start standing for their cause. BLITZER: Does that mean that we have to give more responsibility, Take -- give Iraqis more to do, is that what you're saying?

AL-YAWER: Yes, I think we have to work together on depending on more Iraqi security forces and military and establish our own forces. This is very important. Without that, I tell you, it can not be the end of it.

BLITZER: Mr. President, welcome back to Washington. Good luck to you, and good luck to all the Iraqi people.

AL-YAWER: Thank you, sir, very much.

(END VIDEOTAPE)

BLITZER: Ghazi al-Yawer speaking with me earlier today here in Washington, the interim president of Iraq.

He's been taking heat for his stewardship for the United Nations oil-for-food program in Iraq, which was clouded by charges of corruption. But, today, the United Nations secretary-general, Kofi Annan, got some loud support from the U.N. General Assembly.

(BEGIN VIDEO CLIP)

(APPLAUSE)

(END VIDEO CLIP)

BLITZER: The display was not spontaneous. Diplomats told CNN they wanted to show support for Kofi Annan, who has conceded that changes are needed at the United Nations, though he did receive a standing ovation from the General Assembly earlier today.

She's just back from Iraq, where she got a first-hand look at trouble spots, Senator Dianne Feinstein from California on her very close call departing Iraq. I'll speak with her live. That's coming up next.

Also, Martha Stewart poised to return to TV, but not like you remember her.

And a nativity unlike any other has one world-famous museum now under fire. We'll show you why.

(COMMERCIAL BREAK)

BLITZER: Iraqi elections, the continuing insurgency and the future of that country.

Earlier, as we saw here, I discussed those issues with Iraq's interim president.

Joining us now, Senator Dianne Feinstein, Democrat of California. She's just back from a fact-finding mission of her own to Iraq. Senator, welcome back to Washington. Thanks very much for joining us.

Before we get to the substance, give us your bottom-line assessment right now. Is the country ready for elections January 30?

SEN. DIANNE FEINSTEIN (D), CALIFORNIA: I think it's tough.

I think fear is back. I think the de-Baathification program went too deep and threw out of work too many Sunnis who have now become part of the problem, instead of part of the solution. And that is not going to get settled in the election. My hope is that they will put together a strong unity ticket. I really believe that's the only solution at this stage.

And I'm really surprised I haven't heard it discussed more. But it may be safe in 14 provinces, but it certainly isn't in the Sunni Triangle.

BLITZER: How dangerous was it? For example, even in the most secure part of the Green Zone in Baghdad, where you were, how frightened were you?

FEINSTEIN: Well, when we came in, about a half-hour before, a missile, or a rocket, had hit the cell phone center. It killed four people. The next day, 20 people were killed.

So, it's an ongoing occurrence. And, you know, if they have .81-millimeter rockets, they can launch them from many miles away and they're just kind of launched blind right into Iraq. So it's terrible, what they do to people and the fear that it restores in people.

And, you know, it's a very serious situation, because, when people are afraid like this and there's still sewage in the streets and they don't have electricity 24/7 and food is difficult, all they yearn for is some form of normalcy.

BLITZER: There was a very disturbing report. We spoke with Senator Hagel, Chuck Hagel, who was on this trip a few days ago.

When you took off on that C-130 military transport plane from Baghdad, you were flying already, and there was concern a missile had been launched against your plane. You were inside. What was going on? Talk a little bit about that.

FEINSTEIN: Well, when we got into the C-130, right in the middle of it was a flag-draped coffin with two military people standing at attention. That was sobering, very sobering in and of itself.

And then all the lights go out, and it's completely black. And the C-130 takes off. And then there are little portholes in the side. And you can see out of the porthole these flashing lights. And we didn't know what they were. And the plane takes evasive action, which is something else. I mean, you go up and down and sideways very fast. So, we knew something was happening. We didn't know quite what. And, afterwards, when we landed in Kuwait, I asked the pilot if that really was a missile coming at us. And he said there was no way of him knowing, that, the minute the flares go off, he takes the evasive action.

BLITZER: Did you ever think it was all over you for, Senator Feinstein?

FEINSTEIN: Well, not really, but it got a little dicey. But I didn't think it was all over.

BLITZER: So, what is your bottom-line assessment now as you look back on what you saw? You heard the comments today from Defense Secretary Rumsfeld. He was questioned pointedly by U.S. troops in Kuwait heading into Iraq. They don't think they have enough armor for their vehicles. They're clearly deeply concerned. And a lot of them are National Guard and Reserve troops who don't necessarily want to be there.

FEINSTEIN: Well, soldiers told us they didn't think they had enough equipment.

Now, this wasn't the brass. This is the rank-and-file people. And one general said, for example, he needed a trained Iraqi army division in Falluja. And he said, whatever you could do, pass it on. So we passed it on wherever we could when we went back to Baghdad, to General Casey, to others. And, I mean, it's clear that they need more, and particularly now, because incidents are happening on a regular bases.

BLITZER: We're glad you're back safe and sound, Senator Feinstein. Thanks for joining us.

FEINSTEIN: You're very welcome. Thank you, Wolf.

BLITZER: Thank you.

Martha Stewart post-prison. She's teaming up with the brains behind some of TV's most popular reality shows. We'll show you what they have planned.

And negativity over the nativity, why it's putting a famous museum in an unwelcome spotlight. Stay with us.

(COMMERCIAL BREAK)

BLITZER: From prison to your living room. After serving her time behind bars, Martha Stewart will host a daytime television show starting next fall.

CNN's Mary Snow is joining us now from New York to tell us more about Martha Stewart's newest venture -- Mary.

MARY SNOW, CNN CORRESPONDENT: Hi, Wolf. And, you know, a show about things like making cookies may not sound like that big of a deal, but when you consider the star of the show was in prison, teaming up with the producer of the hit series "The Apprentice" and "Survivor," and NBC says it believes it has one of the most interesting stories on television next fall.

(BEGIN VIDEOTAPE)

MARK BURNETT, PRODUCER: And I cannot wait until she comes out of jail and we can work together. And that was her yesterday, by the way, in the prison kitchen.

SNOW (voice-over): Reality TV brain child Mark Burnett is bringing to NBC what could be the ultimate reality show, convicted felon Martha Stewart as a TV talk show host this fall.

JEFF ZUCKER, PRESIDENT, NBC: We're thrilled to have Martha back at NBC.

SNOW: Stewart will host an hour-long syndication show. She inked her TV deal before going to prison and she can't conduct business while serving time at Alderson. She is serving five months for lying to federal investigators about a stock sale. Her company's CEO says there was no hesitation about making the announcement while she is serving time.

SUSAN LYNE, CEO, MARTHA STEWART LIVING OMNIMEDIA: This is a forgiving country. People love redemption stories.

SNOW: Her experience behind bars will be part of the show. Her new producer, who has visited her in prison, says interest in her has only grown.

BURNETT: Here is the first time ever probably for the general public to hear from someone what it's really like to be in jail.

(END VIDEOTAPE)

SNOW: Now, Mark Burnett did visit Martha Stewart in prison. And he did make a point of saying that, while there, they did not talk about business because that is forbidden while Stewart is serving time. Her company also made it clear that the final arrangement of this TV deal was done without her.

And, wolf, it was two months ago today that Martha Stewart reported to a federal prison in Alderson, West Virginia. She will be released in March -- Wolf.

BLITZER: When does this show, Mary, go into production?

SNOW: Well, they're going to begin taping in September. When Martha Stewart does come out of prison, she'll have to serve five months of home confinement, and then they plan to start taping the show in September. It will have a live audience, so she'll have to go to a studio. I also asked Mark Burnett if he planned to tape any part of a show with her in her home while she serves home confinement. He said, to my question, he answered, we'll see.

BLITZER: Mary Snow, thanks very much for that report. Lots of interest in that story.

We have some new developments to bring you up to speed on, on that story concerning the fires that swept through a Maryland subdivision just outside of Washington a couple of days ago, a fear of ecoterrorism there.

CNN's Brian Todd is on the scene for us in Indian Head, Maryland -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, there is new information in this case leading investigators to make some strong public declarations for the first time.

(BEGIN VIDEOTAPE)

TODD (voice-over): Combing every inch of a massive crime scene where investigators now say 19 of the 26 homes damaged by fire in the Hunters Brooke subdivision were the result of arson, and startling new information, that attempts at arson were made on 11 other homes and failed. Investigators giving another strong indication after putting those pieces together.

UNIDENTIFIED MALE: We are strongly considering that this act had to have been -- at least considering -- had to have been perpetrated by more than one person.

TODD: Beyond that, officials cannot say how many people they believe are involved. A federal law enforcement source tells CNN they are looking for the driver of a blue van seen in the area when the fires broke out early Monday.

Official have no description of the van and are not calling the driver a suspect.

(END VIDEOTAPE)

TODD: Now, investigators say, in fact, they have not listed anyone officially as a suspect yet. They are offering an $82,000 reward for information leading to an arrest in this case.

And they've set up a tip line. That number, 1-800-492-TIPS, if people have information. They expected to finish collecting evidence at the scene today, but they have so much to go through that they are going to be back here tomorrow -- Wolf.

BLITZER: Brian Todd reporting for us -- thanks, Brian, very much.

We'll have the results of our Web question of the day. That's coming up next. Also, a nativity like no other in our picture of the day.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day. We've been asking you, would the intelligence overhaul bill make America safer? Look at this; 33 percent of you say yes; 67 percent of you say no. About 32,000 of you so far have voted. Remember, though, this is not a scientific poll.

Our picture of the day is drawing some harsh words from religious leaders. Madame Tussaud's wax museum in London has a new take on the nativity this year. It features soccer star David Beckham and his wife, Victoria, a former Spice girl, as Joseph and Mary. President Bush, British Prime Minister Tony Blair and Prince Philip are the three wise men.

While the museum says the scene was intended in the spirit of fun, the Vatican was quoted as saying that this is blasphemous and that it is in very poor taste as well. "If it isn't blasphemous, it is in very poor taste," just to be precise, what the Vatican is saying.

A reminder, you can catch us weekdays at this time, 5:00 p.m. Eastern. I'm also on the air weekdays, noon Eastern. Until tomorrow, thanks very much for joining us.

"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 December 8, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Happening now. A U.S. senator's outrage over Defense Secretary Donald Rumsfeld's comments on why American troops don't have enough protective armor yet in Iraq.
Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

(voice-over): Bombarded by the troops.

UNIDENTIFIED MALE: We're digging (UNINTELLIGIBLE) rusted scrap metal and compromised ballistic glass that has already been shot up, dropped, busted, picking the best out of this scrap to put on our vehicles to take into combat.

BLITZER: From lack of armor to long deployments. Rumsfeld is under fire.

Is Iran muscling in?

UNIDENTIFIED MALE: I am very concerned. There is a lot of Iranian interference.

BLITZER: Is another neighbor backing the insurgents? I'll ask Iraq's interim president Ghazi Al-Yawar.

Charging. Players and fans get called for a foul by prosecutors.

From doing time to showtime. Is reality TV next for Martha Stewart?

ANNOUNCER: This is WOLF BLITZER REPORTS for Wednesday, December 8, 2004.

(END VIDEOTAPE)

BLITZER: Defense Secretary Donald Rumsfeld in the hot seat, at least with some U.S. troops about to head into Iraq. Earlier today, he was hit with some pointed questions from soldiers, obviously, unhappy with their situation.

(BEGIN VIDEOTAPE) DONALD RUMSFELD, DEFENSE SECRETARY: Now, settle down, settle down. I'm an old man, and it's early in the morning. I'm gathering my thoughts here.

BLITZER (voice-over): Donald Rumsfeld was in Kuwait to give U.S. troops a pep talk. But he himself was peppered by some very pointed questions, including this one from a soldier who complained that military vehicles are not properly armored.

UNIDENTIFIED MALE: Now, why do we soldiers have to dig through local landfills for pieces of scrap metal and compromised ballistic glass to help armor our vehicles and why don't we have those resources readily available to us?

RUMSFELD: As you know, you go to war with the army you have, not the army you might want. Since the Iraq conflict began, the army has been pressing ahead to produce the armor necessary at a rate that they believe -- it's a greatly expanded rate from what existed previously, but a rate that they believe is the rate that is all that can be accomplished at this moment.

BLITZER: Rumsfeld also responded to a charge the regular army gets better equipment than National Guard and reserve units.

RUMSFELD: In any organization, you're going to have equipment and materials and spare parts of different ages, and I am told -- no way I can prove it, but I am told that the army is breaking its neck to see that there is not a differentiation as to who gets what aged materials in the military, in the army, as between the active force, the Guard, and the Reserve.

BLITZER: Another soldier asked about the so-called stop-loss policy which has allowed the Pentagon to indefinitely extend troops' tours of duty.

UNIDENTIFIED FEMALE: My husband and myself, we joined a volunteer army. Currently, I'm serving under the stop-loss program. I would like to know how much longer do you foresee the military using this program.

RUMSFELD: Stop-loss has been used by the military for years and years and years. It is all well understood when someone volunteers to join the service. It is something that you prefer not to have to use, obviously, in a perfect world, but if you think about it the whole principle is based on unit cohesion and the principle is that in the event that there's a -- something that requires a unit to be involved and people are in a personal situation where their time was ending, they put a stop-loss on it so that the cohesion can be maintained.

BLITZER: Despite the tough questions, Rumsfeld said he was pleased he could visit with the troops and he received a standing ovation as he finished.

(END VIDEOTAPE)

(on camera): But Donald Rumsfeld isn't getting any applause from at least one United States senator. Democrat Chris Dodd of Connecticut accuses the administration of a lack of concern about underequipped troops.

(BEGIN VIDEO CLIP)

SEN. CHRISTOPHER DODD (D), CONNECTICUT: The secretary of defense in a rather stunning comment, according to reports, said the following, "you go to war with the army you have." What's more shocking than this statement is the apparent lack of concern showed by the administration for the critical shortfalls of protective equipment and body armor so vitally important that these men and women are going to be able to complete their job.

(END VIDEO CLIP)

BLITZER: Proper equipment and the lack of it a huge concern for American forces in Iraq. For more on that, we're joined by our senior Pentagon correspondent, Jamie McIntyre. What are they saying about the percentage, Jamie, of vehicles in Iraq that don't necessarily have adequate armor?

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, right now, they're saying when you talk about the humvees, they're saying 75 percent of them, three out of four, are armored, and then the ones that aren't armored, they're trying to use those only in areas where there's less of a threat. For instance, they say that this particular unit that's in Kuwait will not be driving unarmored humvees into Iraq when they move into Iraq. In fact, they'll be falling in on equipment that's already there, used by the soldiers there, replacing that includes armored humvees. They admit there's a shortfall, they're rushing to fill it. Meanwhile they are trying to make a smart use of the armor they have.

BLITZER: Senator Dodd mentions body armor. Do we know what percentage of the nearly 150,000 U.S. troops now in Iraq don't have adequate body armor?

MCINTYRE: That was a shortage last year. As of early this year, the army has been able to get body armor to every soldier in Iraq. The shortage was on some special ceramic plates that gave extra protection and, again, the army now says they've been able to get those to all of the soldiers. There was a time when they didn't all have them. They had to share them.

BLITZER: Something like Larry Di Rita, the Pentagon spokesman said in his briefing earlier today. He said when the country is at war, the war begins and then we start to mobilize. Raising questions, at least in my mind, the administration, Pentagon, knew they were going to go to war. Why not be ready in advance of the war?

MCINTYRE: Of course, the real secret is what this shows is it is a tacit admission that the Pentagon didn't anticipate the kind of insurgency going on. They didn't think they would need armored humvees for all the soldiers and they've had to go back now. Now, the comparison Larry Di Rita was trying to make was to World War II when the United States had to gear up after the war got started. As one of the reporters here pointed out, this was not a case where the U.S. -- they chose the timing and circumstances to go to war in Iraq, and in that case they can't quite use the excuse that they have to prepare after the war is already started.

BLITZER: One final question, Jamie. The suggestion that the National Guard reserve troops in Iraq serving the United States are second-class citizens, don't get the equipment, don't get the support that the regular forces get. What are you hearing about that? Because about 40 percent or so of the U.S. forces in Iraq are National Guard or reserve.

MCINTYRE: It is a widespread perception, including among some of the National Guard members. The leadership at the Pentagon, you heard Secretary Rumsfeld mention it in the piece you did. We talked to the head of the Guard unit here. He insists that's a myth, the National Guard troops get the same training, same level of equipment. He says if you go to Iraq, you can't tell the difference between a guard and active duty troop unless you ask them.

BLITZER: Jamie McIntyre, thanks very much.

CNN security watch. After weeks of wrangling the Senate has finally passed the intelligence reform bill based on recommendations from the 9/11 commission. Voting has just ended. The intelligence bill passed by a vote of 89-2. Among other things, it creates the office of a national intelligence director with a broad scope and powers to coordinate U.S. intelligence efforts. But what does this sweeping new legislation really mean for the nation's spy agencies? What does it mean for all of us? For answers, let's turn to our national security correspondent David Ensor.

DAVID ENSOR, CNN NATL. SECURITY CORRESPONDENT: Wolf, the intelligence reform bill promises major change, creating what could be a powerful new director of national intelligence. But experts say it raises more questions than it answers.

(BEGIN VIDEOTAPE)

DAVID KAY, FMR. CIA OFFICIAL: The real issue is, what is his relationship with all the 15 intelligence agencies? Who actually works for him? Where is the national intelligence council going to be? Who is going to brief the president every day? What's the bases for that? These are things that actually have to be worked out.

ENSOR: As it stands now, one man, Porter Goss, wears two hats. He is the CIA director and also the director of central intelligence, nominally in charge of all 14 other U.S. intelligence agencies as well as the national counterterrorism center that began operations Monday. Under the bill, a director of national intelligence replaces the DCI and is put over the top of a separate CIA director, the counterterrorism center and the 14 other agencies.

But the most important change has to do with these two agencies, the National Security Agency, the big ear of the U.S. government, the eavesdroppers and the National Geospacial Intelligence Agency, the big eye of the U.S. government that analyzes imagery from spy satellites. Right now though the intelligence director has nominal authority the Pentagon largely controls the budgets and personnel of these two crucial

ENSOR: the Pentagon largely controls the budgets and personnel of these 2 crucial spy agencies. Under the bill, a new intelligence director gains considerably more control, potentially shifting the balance of power in Washington.

FLYNT LEVERETT, BROOKINGS INSTITUTION: It's not the culmination, it's the beginning. And it gives a, hopefully, entrepreneurial first director of national intelligence some tools he might use to achieve real reform.

ENSOR: The bill also requires states to follow uniform standards for issuing drivers' licenses, to make them harder forge. It beefs up border guards, immigration agents and aviation security. And sets up an independent oversight board on civil liberties.

In the bill, Congress failed to reform itself, to address the overlapping web of more than 20 committees overseeing parts of U.S. intelligence.

DAVID KAY, FORMER CIA OFFICIAL: There's nothing in this bill that addresses the fiefdoms on the Hill. And that is going to be an issue that Congress has got to return to.

ENSOR: You think they punted on it?

KAY: Punt. At least you have contact when you punt. I think they ran away from it.

(END VIDEOTAPE)

ENSOR: Senior U.S. intelligence officials and outside analysts say the key will be who the president picks for intelligence chief. He or she must have credibility, communication skills, discretion, a thick skin and the absolute trust of the man in the White House. A tall order, Wolf.

BLITZER: You got any names? Hearing any significant short lists?

ENSOR: Porter Goss is obviously a candidate. There are others that are mentioned in the newspapers, ranging from Senator Joe Lieberman to various other people on Capitol Hill to some others in the executive branch. Frankly, I think there's only one man knows the answer now.

BLITZER: That would happen to be the president of the United States. David Ensor, we'll avoid the speculation until we know for sure. Porter Goss, the CIA director right now. Thanks very much, David.

To our viewers, here's your chance to weigh in on the story. Our web question of the day is this. "Would the intelligence overhaul bill make America safer?" You can vote right now. Go to CNN.com/wolf. We'll have the results later in this broadcast.

Both players and fans are now facing charges in the notorious basket brawl.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We feel we're very judicious in our charging decisions and attempt to decipher acts of retaliation from self- defense.

(END VIDEO CLIP)

BLITZER: Details ahead on who could get jail time.

Also, are Iraq's neighbors trying to influence the vote? I'll ask the country's interim president Ghazi Al-Yawer.

Plus, she still has months to serve in prison. But big plans under way and announced for Martha Stewart's major comeback. We'll show you what's in the works. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Five players and five fans were charged today in connection with last month's NBA basketball brawl in Michigan. CNN's Eric Phillips standing by with details -- Eric.

ERIC PHILLIPS, CNN CORRESPONDENT: Well Wolf, authorities in Oakland County, Michigan stress today that both the fans and the NBA players involved in that basket brawl are all responsible. However, the prosecutor was very direct in saying who he blames most.

(BEGIN VIDEOTAPE)

PHILLIPS: This scene from the November 19th brawl at the Pistons/Pacers game is etched in the minds of basketball fans and the public at large. The NBA stepped in immediately, suspending 4 Pacers players as a result of the disturbance. Now, several have been charged with crimes.

Jermaine O'Neal has been charged with two counts of misdemeanor assault and battery. While his teammates Ron Artest, Steven Jackson, Anthony Johnson and David Harrison were charged with one count.

Also, five fans have been charged in this brawl, one with a felony for throwing a chair. John Green is one of those charged. Authorities say it all started when he threw a drink at Ron Artest and Artest charged the stands.

DAVID GORCYCA, OAKLAND COUNTY PROSECUTOR: In my opinion, I would like to hold Mr. Green more accountable, because had not he thrown that cup and struck Artest, we wouldn't be here today.

PHILLIPS: The local police chief is hoping these charges send a strong message. CHIEF DOREEN OKLO, AUBURN HILLS POLICE: We hope that this incident can serve as a turning point to mark the return of sportsmanship and civilized conduct of players and of their fans at all levels of sport competition.

PHILLIPS: Authorities say NBA players are told to not enter the stands during games. And fans are cautioned that disturbing behavior could cause them to be ejected from the facility.

UNIDENTIFIED MALE: The fact that you have a ticket does not mean you have a license to harass or batter players, whether or not they enter into the -- off the playing area and into the spectator seating.

PHILLIPS: Authorities say more people could still be charged.

(END VIDEOTAPE)

PHILLIPS: Now, Wolf, tomorrow the players' association will be meeting with an arbitrator to see if those suspensions can either be lifted or greatly reduced. If they stick, they will cost players a combined total of more than $10 million in income -- Wolf.

BLITZER: Eric, what's the expectation tomorrow in that arbitration?

PHILLIPS: Well, it's kind of a convoluted situation, because the Players' Association will be going to meet with the arbitrator. But the NBA has refused so far to meet with one, saying they have total jurisdiction over the situation, that those suspensions will in fact stick.

So, the arbitrator really has two decisions to make. No. 1, does he have jurisdiction to make a decision in this instance? And if he does, No. 2, what that decision will be. Whether or not either of those decisions will be made is yet to be seen.

BLITZER: CNN's Eric Phillips reporting for us. Eric, thanks very much.

How long do U.S. forces need to stay in Iraq? Just one of the questions I'll ask the country's interim president, Ghazi al Yawer. Stand by for that.

Also, details of a promising new cancer drug. We'll tell you all about it.

And details also announced of Martha Stewart's return to TV. It's probably very different than what you may think. Our Mary Snow is standing by with all of the latest developments.

(COMMERCIAL BREAK)

BLITZER: Facing a raging insurgency, Iraqi leaders have their hands full trying to organize next month's election. Now, there's word Iran may be interfering in the process, trying to create another Islamic regime. Earlier I spoke with the Iraqi interim president, Ghazi al-Yawar, who is concerned with that prospect. Here is part one of my interview.

(BEGIN VIDEOTAPE)

BLITZER: You heard me report that maybe a million Iranians may have crossed the border into Iraq. And they are not only trying to influence the election, but they're going to vote.

GHAZI AL-YAWAR, IRAQI INTERIM PRESIDENT: I hope it won't happen. I mean, we have to be very careful. We are depending on the merit of our Iraqi people in the south, the Shiites in Iraq are not necessarily -- as a matter of fact, the majority are very skeptical of the Iranian role in Iraq.

BLITZER: That's not necessarily the case when you speak to some Shiites. They see themselves as part of the same group, Iraqi Shiites and Iranian Shiites. There seems to be a blurring of distinction.

AL-YAWAR: I'm talking about the vast majority of Iraqi Shiites. After all, they are Arab before becoming into a certain sect. Besides, we in Iraq we only have one platform that bring us all together, as the Iraqi identity. There is long -- deep in history, sensitivity between Iraq and Iran beyond the first Gulf War. It goes to 3,000 years ago, and Iraqis always have been -- are Iraqis.

BLITZER: When you take a look at the situation right now, how much longer do you believe U.S. forces will have to remain in Iraq?

AL-YAWAR: As long as it takes to -- until we have our qualified efficient Iraqi security forces, because the solution will be -- the final solution will be when we have our own qualified security forces. It's not impossible. It is very possible. Iraq is a country of a lot of human resources and capabilities. We can reinstate some of the old security forces who are carefully screened. We are adopting the right program right now. We should also depend on Iraqi ex-military generals whose are above any suspicion to be part of the rehabilitation recruitment for boosting up the morale of these people.

BLITZER: In hindsight, it was a mistake to disband the Iraqi military.

AL-YAWAR: Definitely it was a mistake. It was a mistake.

BLITZER: Who should bare responsibility for that blunder?

AL-YAWAR: Well, some Iraqi politicians who gave bad advice to whoever was in Iraq from the CPA...

BLITZER: Ambassador Paul Bremer.

AL-YAWAR: Also -- yes. Also, that doesn't mean whoever took the decision should not be blamed. It's a blame that both sides should share.

BLITZER: What about Syria? There were reports of U.S. military intelligence cited today in "The Washington Post," that the Syrians are allowing not only insurgents to cross in from Syria into Iraq, but they're financing, organizing. There's a much more active role from Syria than previously thought.

AL-YAWAR: Well, I think we're having insurgents coming from Syria. I'm not sure about Syria itself financing these people. I don't think they have all the resources to do so. But these people have all the money. They have a lot of cash, which they stole from Iraqi Central Bank before the collapse of the old regime. They are using their own money. The problem is Syria -- we think that is offering them a safe haven and shelter and they're operating from there.

BLITZER: Are insurgents also being financed by Saddam loyalists, exiles who are living in Jordan?

AL-YAWAR: I'm not sure about that, but if there are some of Saddam loyalists who are in any country in the world, I'm sure they are contributing to these criminals who are undermining our political -- trying to undermine our political life and harassing our people.

BLITZER: As far as Syria is concerned, and I want to be specific on this, do you see the government or the president Bashar Assad directly involved in trying to strengthen the insurgency against you and your government?

AL-YAWAR: I think some entities in the Syrian government are doing so. I'm not sure if the President Assad condones to that. I think he's a young reformist. That's my belief, my perception. But I think there entities within the Syrian government, especially some of the old guards who would be pleased to do so.

BLITZER: And the Iranian government, same thing?

Do you see a direct involvement from the government of Iran, President Khatami and others in trying to undermine what's happening -- what you want to see happen in Iraq?

AL-YAWAR: Well, it's too complicated, the issue in Iran. Everybody knows there's a government of Khatami who is a mature moderate, but there are very Revolutionary Guard and the (UNINTELLIGIBLE) who are operating 100 percent independent from him. Definitely whoever is trying to interfere in our business from the Iranian side related to the government, not necessarily to Mr. Khatami himself.

(END VIDEOTAPE)

BLITZER: More of my interview with Ghazi al-Yawar, that's coming up later this hour.

What he thinks President Bush should be doing in Iraq right now necessarily. Something not on his current list.

Also, a different side of Martha Stewart. Details of a plan for her post-prison TV show. That's just announced today.

Plus -- potentially serious health problems for another TV icon, and a New Year's Eve tradition, Dick Clark. We'll tell you all about it, what happened to him today.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Saddam Hussein on the stand. When will the former Iraqi dictator go on trial? New information from Iraq's interim president. We'll get to more of my interview with Ghazi al-Yawer.

First, though, a quick check of some other stories now in the news.

Women who have had breast cancer have a new first choice for treatment in their battle to keep the disease from returning. That's the finding of a new study. It says the drug Arimidex clearly outperforms tamoxifen at preventing breast cancer from returning. Tamoxifen revolutionized breast cancer treatment when it came into use three decades ago.

The man who is a fixture in American homes on New Year's Eve is recovering from a stroke. Pop music producer Dick Clark is in a Los Angeles hospital. A spokeswoman says the stroke was minor and the 75- year-old Clark is expected to be fine. Clark says he hopes to be back in Times Square in New York City to help usher in the new year. Good luck to Dick Clark. We wish him a speedy recovery.

Earlier, you heard Iraq's interim president voice concerns his nation's neighbors may be stirring up trouble. What does he think about the American role in Iraq?

Here's part two of my interview with Ghazi al-Yawer.

(BEGIN VIDEOTAPE)

BLITZER: While you're here, I want to tick through some issues and get your thoughts. For example, the latest allegations that U.S. military forces abused Iraqi prisoners during interrogations.

AL-YAWER: Well that would be very sad. I mean, after all, we always say that human lives are sacred wherever it is. It's very important to us, I think, to deal with issues in countries with different cultures in a certain way. We hope that whoever, if proven, committed these atrocities to be court marshaled as if he has abused the rights of an American citizen. After all, all human beings are equal.

BLITZER: So do you have confidence, in the U.S. military that they're investigating this and will get to the bottom of this?

AL-YAWER: They got to be doing that because this would be the wisest thing to do.

BLITZER: The Oil for Food scandal, which is being investigated at the United Nations, one U.S. Senator among others, Norm Coleman, says Kofi Annan should resign. Do you believe Kofi Annan should resign as Secretary General of the U.N. given what the allegations are as you know them right now?

AL-YAWER: Kofi Annan is a distinguished personality. He's been a U.N. Secretary General for many years. He's proven efficiency and quality and I think the man deserves to be understood well.

BLITZER: So he shouldn't resign?

AL-YAWER: I don't think so.

BLITZER: What about the Saddam Hussein trial? When is that going to start?

AL-YAWER: It will start soon after the elections but first, I think, it has to go with the subordinates and build evidence against Saddam. You have to build it from the sides to the center and definitely many people in Iraq can't wait to see that justice has been served.

BLITZER: Would you like to be the President of Iraq after the elections?

AL-YAWER: It's up to the Iraqi people really. I used to be a businessman before and I joined into this thing out of patriotic reasons and by god, I'm ready to do whatever the Iraqi people wish me to do so.

BLITZER: Sounds like you do want to be President of Iraq.

AL-YAWER: Well, I have a job unfinished and I think we all have to work together no matter whether in the National Assembly or in the presidency to serve our country, after all, what's the presidency if you don't have a country or you do not have a state? We are trying to build a strong, prosperous, democratic Iraq and that's what counts for me.

BLITZER: When -- I know we're out of time but when we meet a year from now, what will Iraq look like? Will people be able to walk around Baghdad freely? Will Americans be able to go out in the street without fear of being kidnapped and beheaded?

AL-YAWER: Well, why not? You see there's something very important. We are not fighting a Viet Cong, which have principles and have support -- popular support. We are fighting Saddam Loyalists who are shielding behind beards and the name of Allah and because they know they are fighting for a losing battle. The whole Iraqi population is against them, are sick and tired of them. I think one year from now, exactly, we will be very busy preparing for our free democratic election after ratifying our constitution.

BLITZER: Is there anything that you want President Bush and his administration to be doing that they're not doing right now?

AL-YAWER: Well, I hope that we can -- they can -- they work with us more closer with the Iraqis, and really try to empower more and more Iraqis in any aspect of life. It's very important that Iraqis start standing for their cause. BLITZER: Does that mean that we have to give more responsibility, Take -- give Iraqis more to do, is that what you're saying?

AL-YAWER: Yes, I think we have to work together on depending on more Iraqi security forces and military and establish our own forces. This is very important. Without that, I tell you, it can not be the end of it.

BLITZER: Mr. President, welcome back to Washington. Good luck to you, and good luck to all the Iraqi people.

AL-YAWER: Thank you, sir, very much.

(END VIDEOTAPE)

BLITZER: Ghazi al-Yawer speaking with me earlier today here in Washington, the interim president of Iraq.

He's been taking heat for his stewardship for the United Nations oil-for-food program in Iraq, which was clouded by charges of corruption. But, today, the United Nations secretary-general, Kofi Annan, got some loud support from the U.N. General Assembly.

(BEGIN VIDEO CLIP)

(APPLAUSE)

(END VIDEO CLIP)

BLITZER: The display was not spontaneous. Diplomats told CNN they wanted to show support for Kofi Annan, who has conceded that changes are needed at the United Nations, though he did receive a standing ovation from the General Assembly earlier today.

She's just back from Iraq, where she got a first-hand look at trouble spots, Senator Dianne Feinstein from California on her very close call departing Iraq. I'll speak with her live. That's coming up next.

Also, Martha Stewart poised to return to TV, but not like you remember her.

And a nativity unlike any other has one world-famous museum now under fire. We'll show you why.

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BLITZER: Iraqi elections, the continuing insurgency and the future of that country.

Earlier, as we saw here, I discussed those issues with Iraq's interim president.

Joining us now, Senator Dianne Feinstein, Democrat of California. She's just back from a fact-finding mission of her own to Iraq. Senator, welcome back to Washington. Thanks very much for joining us.

Before we get to the substance, give us your bottom-line assessment right now. Is the country ready for elections January 30?

SEN. DIANNE FEINSTEIN (D), CALIFORNIA: I think it's tough.

I think fear is back. I think the de-Baathification program went too deep and threw out of work too many Sunnis who have now become part of the problem, instead of part of the solution. And that is not going to get settled in the election. My hope is that they will put together a strong unity ticket. I really believe that's the only solution at this stage.

And I'm really surprised I haven't heard it discussed more. But it may be safe in 14 provinces, but it certainly isn't in the Sunni Triangle.

BLITZER: How dangerous was it? For example, even in the most secure part of the Green Zone in Baghdad, where you were, how frightened were you?

FEINSTEIN: Well, when we came in, about a half-hour before, a missile, or a rocket, had hit the cell phone center. It killed four people. The next day, 20 people were killed.

So, it's an ongoing occurrence. And, you know, if they have .81-millimeter rockets, they can launch them from many miles away and they're just kind of launched blind right into Iraq. So it's terrible, what they do to people and the fear that it restores in people.

And, you know, it's a very serious situation, because, when people are afraid like this and there's still sewage in the streets and they don't have electricity 24/7 and food is difficult, all they yearn for is some form of normalcy.

BLITZER: There was a very disturbing report. We spoke with Senator Hagel, Chuck Hagel, who was on this trip a few days ago.

When you took off on that C-130 military transport plane from Baghdad, you were flying already, and there was concern a missile had been launched against your plane. You were inside. What was going on? Talk a little bit about that.

FEINSTEIN: Well, when we got into the C-130, right in the middle of it was a flag-draped coffin with two military people standing at attention. That was sobering, very sobering in and of itself.

And then all the lights go out, and it's completely black. And the C-130 takes off. And then there are little portholes in the side. And you can see out of the porthole these flashing lights. And we didn't know what they were. And the plane takes evasive action, which is something else. I mean, you go up and down and sideways very fast. So, we knew something was happening. We didn't know quite what. And, afterwards, when we landed in Kuwait, I asked the pilot if that really was a missile coming at us. And he said there was no way of him knowing, that, the minute the flares go off, he takes the evasive action.

BLITZER: Did you ever think it was all over you for, Senator Feinstein?

FEINSTEIN: Well, not really, but it got a little dicey. But I didn't think it was all over.

BLITZER: So, what is your bottom-line assessment now as you look back on what you saw? You heard the comments today from Defense Secretary Rumsfeld. He was questioned pointedly by U.S. troops in Kuwait heading into Iraq. They don't think they have enough armor for their vehicles. They're clearly deeply concerned. And a lot of them are National Guard and Reserve troops who don't necessarily want to be there.

FEINSTEIN: Well, soldiers told us they didn't think they had enough equipment.

Now, this wasn't the brass. This is the rank-and-file people. And one general said, for example, he needed a trained Iraqi army division in Falluja. And he said, whatever you could do, pass it on. So we passed it on wherever we could when we went back to Baghdad, to General Casey, to others. And, I mean, it's clear that they need more, and particularly now, because incidents are happening on a regular bases.

BLITZER: We're glad you're back safe and sound, Senator Feinstein. Thanks for joining us.

FEINSTEIN: You're very welcome. Thank you, Wolf.

BLITZER: Thank you.

Martha Stewart post-prison. She's teaming up with the brains behind some of TV's most popular reality shows. We'll show you what they have planned.

And negativity over the nativity, why it's putting a famous museum in an unwelcome spotlight. Stay with us.

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BLITZER: From prison to your living room. After serving her time behind bars, Martha Stewart will host a daytime television show starting next fall.

CNN's Mary Snow is joining us now from New York to tell us more about Martha Stewart's newest venture -- Mary.

MARY SNOW, CNN CORRESPONDENT: Hi, Wolf. And, you know, a show about things like making cookies may not sound like that big of a deal, but when you consider the star of the show was in prison, teaming up with the producer of the hit series "The Apprentice" and "Survivor," and NBC says it believes it has one of the most interesting stories on television next fall.

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MARK BURNETT, PRODUCER: And I cannot wait until she comes out of jail and we can work together. And that was her yesterday, by the way, in the prison kitchen.

SNOW (voice-over): Reality TV brain child Mark Burnett is bringing to NBC what could be the ultimate reality show, convicted felon Martha Stewart as a TV talk show host this fall.

JEFF ZUCKER, PRESIDENT, NBC: We're thrilled to have Martha back at NBC.

SNOW: Stewart will host an hour-long syndication show. She inked her TV deal before going to prison and she can't conduct business while serving time at Alderson. She is serving five months for lying to federal investigators about a stock sale. Her company's CEO says there was no hesitation about making the announcement while she is serving time.

SUSAN LYNE, CEO, MARTHA STEWART LIVING OMNIMEDIA: This is a forgiving country. People love redemption stories.

SNOW: Her experience behind bars will be part of the show. Her new producer, who has visited her in prison, says interest in her has only grown.

BURNETT: Here is the first time ever probably for the general public to hear from someone what it's really like to be in jail.

(END VIDEOTAPE)

SNOW: Now, Mark Burnett did visit Martha Stewart in prison. And he did make a point of saying that, while there, they did not talk about business because that is forbidden while Stewart is serving time. Her company also made it clear that the final arrangement of this TV deal was done without her.

And, wolf, it was two months ago today that Martha Stewart reported to a federal prison in Alderson, West Virginia. She will be released in March -- Wolf.

BLITZER: When does this show, Mary, go into production?

SNOW: Well, they're going to begin taping in September. When Martha Stewart does come out of prison, she'll have to serve five months of home confinement, and then they plan to start taping the show in September. It will have a live audience, so she'll have to go to a studio. I also asked Mark Burnett if he planned to tape any part of a show with her in her home while she serves home confinement. He said, to my question, he answered, we'll see.

BLITZER: Mary Snow, thanks very much for that report. Lots of interest in that story.

We have some new developments to bring you up to speed on, on that story concerning the fires that swept through a Maryland subdivision just outside of Washington a couple of days ago, a fear of ecoterrorism there.

CNN's Brian Todd is on the scene for us in Indian Head, Maryland -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, there is new information in this case leading investigators to make some strong public declarations for the first time.

(BEGIN VIDEOTAPE)

TODD (voice-over): Combing every inch of a massive crime scene where investigators now say 19 of the 26 homes damaged by fire in the Hunters Brooke subdivision were the result of arson, and startling new information, that attempts at arson were made on 11 other homes and failed. Investigators giving another strong indication after putting those pieces together.

UNIDENTIFIED MALE: We are strongly considering that this act had to have been -- at least considering -- had to have been perpetrated by more than one person.

TODD: Beyond that, officials cannot say how many people they believe are involved. A federal law enforcement source tells CNN they are looking for the driver of a blue van seen in the area when the fires broke out early Monday.

Official have no description of the van and are not calling the driver a suspect.

(END VIDEOTAPE)

TODD: Now, investigators say, in fact, they have not listed anyone officially as a suspect yet. They are offering an $82,000 reward for information leading to an arrest in this case.

And they've set up a tip line. That number, 1-800-492-TIPS, if people have information. They expected to finish collecting evidence at the scene today, but they have so much to go through that they are going to be back here tomorrow -- Wolf.

BLITZER: Brian Todd reporting for us -- thanks, Brian, very much.

We'll have the results of our Web question of the day. That's coming up next. Also, a nativity like no other in our picture of the day.

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BLITZER: Here's how you're weighing in on our Web question of the day. We've been asking you, would the intelligence overhaul bill make America safer? Look at this; 33 percent of you say yes; 67 percent of you say no. About 32,000 of you so far have voted. Remember, though, this is not a scientific poll.

Our picture of the day is drawing some harsh words from religious leaders. Madame Tussaud's wax museum in London has a new take on the nativity this year. It features soccer star David Beckham and his wife, Victoria, a former Spice girl, as Joseph and Mary. President Bush, British Prime Minister Tony Blair and Prince Philip are the three wise men.

While the museum says the scene was intended in the spirit of fun, the Vatican was quoted as saying that this is blasphemous and that it is in very poor taste as well. "If it isn't blasphemous, it is in very poor taste," just to be precise, what the Vatican is saying.

A reminder, you can catch us weekdays at this time, 5:00 p.m. Eastern. I'm also on the air weekdays, noon Eastern. Until tomorrow, thanks very much for joining us.

"LOU DOBBS TONIGHT" starts right now.

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