Thursday, December 11, 2003

White House Restricts Iraq Reconstruction Contract To Noncoalition Members; Pentagon Believe Halliburton Overcharged For Gas In Iraq; Rockets Fired At U.S. Green Zone In Baghdad

White House Restricts Iraq Reconstruction Contract To Noncoalition Members; Pentagon Believe Halliburton Overcharged For Gas In Iraq; Rockets Fired At U.S. Green Zone In Baghdad
Aired December 11, 2003 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening again everyone.We should call our top two stories tonight your tax dollars at work. In one the administration may be softening its position on awarding contracts to companies from countries that did not support the war in Iraq. We'll let John King explain the details.But it's now beginning to feel a bit like a negotiation is going on. At stake, billions of your tax dollars and who should profit from Iraqi reconstruction. Your tax dollars have already been awarded to Halliburton and today the giant Texas company was slapped around a bit by the Pentagon.It seems the Pentagon believes Halliburton may be overcharging for gas, trying to overcharge for food services but not to worry. It was only a few tens of millions of dollars. It would be easier to be outraged if all this came as some sort of surprise but, as they say, tens of millions close enough for government work.We start things off at the White House, our Senior White House Correspondent with the watch, John King, John a headline.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Aaron, the president defended his policy about reconstruction contracts today saying it makes sense to him that those who shed the blood in the war should get the money from these major contracts but there was a hint of compromise, the president's spokesman saying if those war opponents now are willing to forgive Iraq's huge international debts "perhaps the circumstances could change" -- Aaron.

BROWN: John, thank you. We'll get to you at the top tonight. On to the Pentagon and questions about the cost of a gallon of gas in Iraq, Jamie McIntyre there for us, Jamie the headline.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, those Pentagon auditors are taking a look at what Halliburton paid for gas that it imported into Iraq and passed on to U.S. taxpayers. They think the overcharge is about $61 million but they say it wasn't Halliburton that might have gotten the extra money but a Kuwaiti company.

BROWN: Jamie, thank you.Next to Baghdad, explosions in the night, Nic Robertson with the duty, Nic a headline.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Aaron, the first attack on -- the first missile attack on coalition headquarters in over a month had coalition officials diving for cover while earlier in the day the third suicide attack against a U.S. base killed one soldier and injured 14 others. That's the third suicide attack in three days -- Aaron.

BROWN: Nic, thank you.And finally to Massachusetts, one of 50 states and by my counting that's all of them now hit with the flu, CNN's Dan Lothian covering developments there, Dan a headline.

DAN LOTHIAN, CNN BOSTON BUREAU CHIEF: Well, Aaron, the CDC says the flu outbreak is spreading. Now an 18-year-old college has died and there's a shortage of the flu vaccine. It may not be a pretty picture but the federal government says it's not an epidemic -- Aaron.

BROWN: Dan, thank you. We'll get back to you and the rest shortly.Also ahead on the program tonight, terror of a homegrown variety, a Texas man with a huge arsenal, including the making of a cyanide bomb.Later, desperate measures and sometimes deadly consequences children trying to sneak into this country from Mexico to join their families.And, of course, a visit from the rooster ends the evening, a check of your paper, well maybe not literally your paper but tomorrow morning's papers just the same, all that and more in the hour ahead.We begin tonight with the cost of doing business in Iraq. Agree or disagree with the policy in the first place the choice of who rebuilds Iraq and how comes with certain benefits but it also comes with a price tag in dollars and diplomacy, both spotlighted today.The diplomatic side first and CNN's John King.

(BEGIN VIDEOTAPE)

KING (voice-over): The president says he doesn't understand all the fuss.

BUSH: It's very simple. Our people risk their lives. Coalition, friendly coalition folks "risk their lives" and therefore the contracting is going to reflect that and that's what the U.S. taxpayers expect.

KING: But the decision to steer nearly $20 billion in Iraq reconstruction money to companies from the United States and key war allies reopened the diplomatic divide between Washington and major war opponents like France, Russia, and Germany.

KOFI ANNAN, U.N. SECRETARY-GENERAL: I would not characterize the decision taken yesterday as unifying.

KING: The president's political opponents call it more failed diplomacy.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: I think it borders on the stupid. It is counterproductive. It is the exact opposite of what we should be doing in order to bring other countries into the table.

KING: But at this year-end cabinet meeting Mr. Bush not only defended the policy but scoffed when asked about French and German suggestions his approach violates international law.

BUSH: International law, I better call my lawyer.

KING: Still, the timing is awkward to say the least. The dust- up comes just as special Bush envoy James Baker heads to Paris, Moscow and Berlin asking leaders to forgive or at least reduce huge Iraqi debts from the days of Saddam Hussein.

IVO DAALDER, BROOKINGS INSTITUTION: If I were Mr. Baker I would have gone into the Oval Office and told the president I'm going back to Houston until you find a way to cooperate with these guys.

KING: Canada also is excluded from major contracts, though Prime Minister Jean Chretien says Mr. Bush told him Thursday that was a mistake.

JEAN CHRETIEN, CANADIAN PRIME MINISTER: He was telling me to basically not to worry.KING: The White House says Mr. Bush made no promises but did note Canada's pledge to offer money for Iraq's reconstruction.

(END VIDEOTAPE)

KING: Slashing Iraq's $120 billion international debt is now the most urgent White House focus and perhaps now a bargaining chip in this bitter contract dispute. The White House today suggesting that if those war opponents are willing to forgive or at least reduce Iraq's big debt perhaps, Aaron, things could change the contract rules among them.

BROWN: Has Mr. -- because I would really like to hear that conversation, has Mr. Baker weighed in at all on this?

KING: We have not heard from him publicly at all. He did meet with the president earlier this week about his coming mission to those key capitals overseas. Whether he raised the issue of the timing of this contract dispute and whether it perhaps, as some would say, complicated his already delicate diplomacy he hasn't said so publicly and, in fact, at the request of the White House at the Baker Institute all people say they are told to talk to us not at all. 

BROWN: And there was a story this morning that the president personally was fuming at the timing of the release of the Pentagon memo on all of this, confirm, reject, what do you know?

KING: A little bit in the middle, fuming became awkward by the end of the day. The White House approved this policy. They knew it was in the works. They knew the Pentagon was about to release it. They're not exactly thrilled with the timing because it does complicate Secretary Baker's diplomacy, does exacerbate some of the tensions. They wish it wasn't so or in your face, some aides would say, but they say the president can't be fuming about it because he authorized it. It is his policy. The Pentagon, of course, answers to the White House.

BROWN: John, thank you very much, Senior White House Correspondent John King tonight.On to the price of gas now in Baghdad, about 15 cents a gallon, 15 cents a gallon when it's available which isn't all that often conditions being what they are.The job of fixing Iraq's oil infrastructure falls to Halliburton, the company Vice President Cheney once ran. Halliburton got this contract without having to bid on it. Under the terms of the deal a subsidiary of the company is shipping gas in from Kuwait for an average price of around $2.64 a gallon, which even if they checked the oil and do the windshield sounds a little bit steep and the auditors at the Pentagon agree.Here's CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): The Pentagon says it was a routine review that turned up the potential overcharge by a Halliburton subsidiary, awarded a no-bid contract in March to rebuild Iraq's oil industry.Pentagon auditors concluded Kellogg, Brown and Root potentially overcharged the U.S. government $61 million for gas from Kuwait imported into Iraq but there is no allegation Halliburton unduly profited from the overpriced gas.The audit questions if Halliburton paid above market rates to a Kuwaiti subcontractor, $2.27 per gallon compared to another supplier who got gas at $1.18 per gallon from Turkey.Halliburton argues the higher cost was due to having to negotiate a short term contract at a time when there weren't enough trucks in Kuwait to deliver the fuel. Trucks had to be brought in and shipping in a war zone pushed up transportation and security costs as well.A statement from the company insisted those costs were pass- through costs and that Halliburton only recovers a few cents on the dollar. Congressional critics who accuse the company of price gouging don't believe it.

SEN. RON WYDEN (D), OREGON: There have been indications for some months now that taxpayers' interests aren't protected. I'm glad that the Defense Department is finally coming to ask some tough questions but I think they should have been raising these issues many months ago.

MCINTYRE: The Pentagon's comptroller Dov Zakheim insists his auditors have been hard-nosed saying in a statement: "Contractor improprieties and/or contract mischarging will neither be condoned nor allowed to continue."

(END VIDEOTAPE)

MCINTYRE: Now those auditors found another potential overcharge from Halliburton, $67 million too much for dining halls in Iraq but they say that appears to be a billing error and are willing to say it might have been an honest mistake. Needless to say they're not paying that bill.Democratic presidential hopefuls were quick to jump on the issue. Howard Dean called Halliburton a special interest contributor that is overcharging U.S. taxpayers while Dick Gephardt called Halliburton the former employer of Dick Cheney, which he said is bilking the taxpayers -- Aaron.BROWN: Well whatever it is they're doing or however it is it came to pass is there going to be an attempt to try and recover any of this money?

MCINTYRE: Absolutely. That's what's going on now is essentially there's a review of the contract. Halliburton will have to come back and try to justify this extra $61 million. If the U.S. government doesn't believe it's legitimate they will disallow it and Halliburton will be forced to eat the money. They could possibly go back to the Kuwaiti company that sold them the gas and try to get it from them but that seems unlikely.

BROWN: Jamie, thank you, Jamie McIntyre at the Pentagon tonight.There's certainly no arguing Halliburton's assertion that there is a war going on in Iraq. We had more proof of that tonight. We go back to CNN's Nic Robertson in Baghdad -- Nic.

ROBERTSON: Aaron, it was a little after midnight, four explosions were heard in the center of the city. Smoke was then seen to be rising from the Green Zone. This is the coalition's headquarters, the sprawling former presidential palace compound in the center of Baghdad.Shortly after the impact sirens sounded. According to sources within the compound when the explosions were heard people dived for cover under tables. According to coalition officials, however, they say there were no injuries. They report that two missiles struck within the vicinity of the Green Zone and they say that one building within that zone was damaged slightly.This is the first attack in over a month of this type against the Green Zone. A little over a month ago there were several nights of mortar attacks against the base. It is heavily fortified but this missile attack the first in over a month.A little earlier in the day it was the third suicide bombing in three days against U.S. troops. The 82nd Airborne's headquarters in Ramadi was the target. Suicide bombers detonated their vehicle full of explosives right outside the gates killing one soldier. Fourteen others were wounded. We understand 11 of those soldiers have been returned to duty, three of them still receiving medical treatment -- Aaron.

BROWN: Correct me on something here if I'm wrong that this is the second day in a row or maybe the second time in three days that American bases have been targeted.

ROBERTSON: Indeed. In terms of suicide bombings there was a suicide bombing at Mosul two days ago, a suicide bombing in Baquba two days ago and then this suicide bombing today in Ramadi. In terms of the coalition headquarters this was a direct attack but it's the first one on the coalition's headquarters in just over a month -- Aaron.

BROWN: Nic, thank you very much, Nic Robertson in Baghdad this morning.One other incident in Baghdad sadly involves two friends of this program. Michael Weisskopf, Senior Correspondent for "Time" magazine and photographer James Nachtwey they were wounded along with two soldiers when a grenade was thrown into the Humvee they were riding in. Both are said to be in stable condition, both awaiting transfer out of the region to a military hospital in Landstuhl, Germany. They have and we'll acknowledge a bias here, they're friends, to doing remarkable work in Iraq. These are some of Nachtwey's recent photographs. They say it about as well as anything we've seen just what it feels like to be a soldier or a child or a grandmother in Iraq these days.The view is personal as is all the best war photography up close something we talked with Nachtwey about the last time he was on the program.

(BEGIN VIDEOTAPE)

BROWN: Mostly it seems to me you shoot a lot of wars. You've been in a lot of bad places. What is it about war that you find attractive to work in?

JAMES NACHTWEY, PHOTOJOURNALIST: I think it's the -- it's an area that needs the most understanding and needs the most awareness and it needs public opinion to come to bear and that's why I photographed many conflicts but also other critical social issues.

(END VIDEOTAPE) 

BROWN: He is a quintessential war photographer. Again he and Michael Weisskopf injured today in Iraq while on assignment for "Time" magazine.Ahead on NEWSNIGHT, questions about the conviction of some members of an alleged terror sleeper cell in Detroit. Also terror of the homegrown kind, a Texas man with an arsenal that included a cyanide bomb.And later the flu continues to spread and not just little kids and old people.This is NEWSNIGHT from New York.

(COMMERCIAL BREAK)

BROWN: Lucky breaks have cracked many a criminal case and here is one of them, a counterterrorism case in this country that has been part of the president's daily intelligence briefings we're told.A man in a Texas town has now pleaded guilty to possessing a dangerous chemical weapon the question were he and his common law wife homegrown terrorists plotting a deadly attack in this country and were they working alone?Here's CNN's Ed Lavandera.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN DALLAS BUREAU CHIEF (voice-over): In northeast Texas, the town of Tyler was an ideal hiding place for William Krar. He and his common law wife worked out of this storage facility just outside of town. Teresa Staples owns the space. She thought the couple made money selling odds and ends.

TERESA STAPLES, STORAGE OWNER: And they worked her most of the day but what we saw them unloading was clothing, swimsuits, garden tools.

LAVANDERA: So, when authorities showed up last April and searched Krar's storage unit what was found shocked everyone.

BRIT FEATHERSTON, ASST. U.S. ATTORNEY: This was a huge, absolutely a huge arsenal of military-style weapons.

LAVANDERA: There were hundreds of weapons. The inventory list of what was found is extensive but the most startling discovery was the combination of high grade sodium cyanide, acid and gunpowder. Mixed together it becomes a lethal chemical bomb capable of killing everyone inside a 30,000-square-foot building. Authorities suspect Krar might have been part of a criminal scheme to violently attack the U.S. government.

FEATHERSTON: We have yet to figure out the actual destination of any of the bombs or any of the devices. You know I don't think you possess these weapons for a defensive reason.

LAVANDERA (on camera): Federal authorities admit that they might never have caught on to William Krar had it not been for a case of a mistaken delivery. According to this affidavit, Krar sent a package to New Jersey full of fake IDs. Well the box never made it to the right person. Instead, it ended up in Staten Island, New York where someone else opened up the package and found a note inside that said "hope this package gets to you OK. We would hate to have this fall into the wrong hands." Well that person called police.(voice-over): The man who was supposed to get that package in New Jersey has been arrested and so has Krar's common law wife. Court records suggest these three were White supremacists and associated with anti-government groups. Krar's attorney says there's no proof the 60-year-old man was part of a sinister conspiracy and that he owned many of the weapons legally.

TONDA CURRY, KRAR'S ATTORNEY: I don't believe they will ever find any plot to do anything destructive, terroristic or anything like that to the United States.

LAVANDERA: Authorities aren't so sure. One of the documents Krar was found traveling with was this paper with instructions on how to elude authorities.

FEATHERSTON: You don't know what's going through these peoples' minds. We wish we did know what was going through their minds because that would probably make all of us feel a little bit better.

LAVANDERA: Krar has pleaded guilty to possessing a chemical weapon but as he sits in this Tyler jail he's not talking and his intentions are still a mystery.Ed Lavandera CNN, Tyler, Texas.

(END VIDEOTAPE)

BROWN: There is a basic rule of American justice, a simple rule at that. If the prosecution has evidence the accused is innocent or might be innocent it must give the accused that evidence. It can't hide it. In the first post 9/11 terror case to reach a jury the government broke that rule and now a judge must decide what, if anything, should be done about it; reporting for us tonight CNN's Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): They were described as a terrorist sleeper cell in the government's first post 9/11 terror trial. Two of the men were found guilty in June of terrorism-related charges mostly due to testimony from this man, Yousef Hmimssa who lived in this house with some of the defendants. Defense attorneys say those convictions should be reversed. Because of a gag order the attorney general would not discuss the case specifically.

JOHN ASHCROFT, ATTORNEY GENERAL: There are always going to be circumstances that will result in inquiry and discussion in the process of adjudication and those should rightfully be decided in the courts.

ARENA: At issue a letter the prosecution did not turn over to the defense until last month well after the trial. It was written by an imprisoned drug gang leader who says that he was in the jail cell next to Hmimssa. In it the gang leader claims that Hmimssa told him that he "lied to the FBI how he fooled the Secret Service agent on his case." Sources say justice officials are very concerned about what the judge will decide and say they admit the prosecution made a mistake.

PAUL BUTLER, GEORGE WASHINGTON UNIVERSITY: It the government has information that leads to a belief that the defendants might be innocent there's an obligation that it share that information with the defendant. The government didn't do that here and that may mean a new trial is in order.ARENA: The lead prosecutor in the case who has since been replaced testified before a Senate subcommittee this past September and had this to say about Hmimssa's testimony.

RICHARD CONVERTINO, ASSISTANT U.S. ATTORNEY: The information that Mr. Hmimssa told us had to most definitely be corroborated and accepted by the jury in order to be believable to a point where they would vote to convict the defendants.

ARENA (on camera): Sources say the government will argue the suggestion Hmimssa lied was never corroborated and so therefore the convictions should stand.Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

BROWN: Coming up on NEWSNIGHT the spreading illness as the flu outbreak spreads. Is it really that bad and how much do you need to worry about it? Take a break first, around the world this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Officially it's not an epidemic yet but the flu season, which started early and is spreading and it is nasty. Today the CDC said the flu has now hit all 50 states. In almost half the country the outbreak is what the CDC considers widespread and the worst, we are told, is not over. The very young and the very old are among the most vulnerable when it comes to flu but we were reminded today they are not the only ones at risk.Here's CNN's Dan Lothian.

(BEGIN VIDEOTAPE)

LOTHIAN (voice-over): America's flu outbreak now on campus in Worcester, Massachusetts with fatal consequences. Eighteen-year-old freshman Jeffery Donohue, seemingly healthy, woke up in his dorm room with a cough and in a matter of days was dead.

PETER CHIULLI, FRESHMAN: I mean he looked sick but I didn't think it was that bad.

LOTHIAN: Across the country, and especially out west, now 24 state with widespread problems. Health officials say the so-called Fujian (ph) strain representing three-quarters of all cases has been linked to the deaths of 13 children. The CDC says cause for concern but no reason to panic.

DR. JULIE GERBERDING, CDC DIRECTOR: (AUDIO GAP).

LOTHIAN: In Colorado people lined up to get the flu shot, like Olivia Ramirez (ph) getting added protection for her newborn baby but the vaccine is in short supply. That's why the federal government has bought an extra 250,000 doses. Along with that the CDC is dispensing advice.

GERBERDING: There are some very specific steps that we can all take this year. One of those is to be sure that we stay home when we're sick because this will help reduce transmission of any respiratory illness that we might have to others.

LOTHIAN: Back on campus at Worcester State College students get guidance from the school's website.

LARRY TONY LOPEZ, STUDENT GOVERNMENT LEADER: You kind of get a little bit more nervous but I mean you can get sick just from going to the mall.

LOTHIAN: Donohue's death has not yet been linked to the Fujian strain but a new reality here, the notion that just the elderly, young, or chronically ill are at risk now dispelled by the death of an 18-year-old.

CHIULLI: He was a great kid. He made everyone laugh. I mean a fun-loving kid and he just didn't deserve it. That's for sure.

(END VIDEOTAPE)

LOTHIAN: According to the CDC, each year some 36,000 Americans die from complications of the flu and as we've been mentioning while those at highest risk are those who are old or very young or those who have medical problems the CDC says it is not unprecedented to see a healthy teenager also die -- Aaron.BROWN: What did he did, I mean this actually quite literally, what did he die of, the flu itself I don't think kills you, does it? 

LOTHIAN: No, it doesn't. It's usually some sort of complication that occurs from the flu and that is one of the questions that we did pose to medical officials there in Worcester today and they said it's still too early. They're conducting tests but don't have those conclusions yet.

BROWN: Dan, thank you very much, Dan Lothian.As Dan mentioned, literally 30,000-plus people every year die from the flu and so there is a need here it seems to us to try and put some context in what's going on.So joining us from Baltimore tonight, Dr. Kevin Ferentz who's an associate professor at the Department of Family Medicine, the University of Maryland Medical School and, as I said, he's in Baltimore.Answer if you can, not specifically about this young man in Massachusetts, but when flu kills what is it that kills?

DR. KEVIN FERENTZ, UNIVERSITY OF MARYLAND MEDICAL SCHOOL: It usually is a secondary infection. Very often when people get influenza they'll go on to get pneumonia and that's probably the main reason why people would die of the flu.

BROWN: And pneumonia still kills. You can't knock that down with the eight gazillion antibiotics that are out there?

FERENTZ: Well, unfortunately there are some bacteria that are still resistant to antibiotics and, of course, the flu is a virus and sometimes the pneumonia that occurs is actually a viral pneumonia. It just becomes an overwhelming pneumonia.

BROWN: Do you have a feel for I guess how big, let me just do this really simply, how big a deal do we have here because sometimes we, media, newspapers, television get caught up in a story. People are talking about it. We start talking about it. It all sort of explodes on us. Are we in the midst of something unusually bad?

FERENTZ: Well, it sure doesn't look like that to me. I mean what I've been reading and I was on the CDC website today it really doesn't look yet like this is anything terribly out of the ordinary. What's different is it's early. It's an early flu season but we don't know how long it's going to last. We don't know how severe it's going to be. There doesn't appear to be anything strange about this virus that's going to make it a much worse flu season. So, there's a lot of unknowns but there really is no cause for panic at this point.

BROWN: What determines the length of the flu season?

FERENTZ: It's kind of unknown. That's one of the great unknowns out there. Every year is different, Aaron.

BROWN: And so, the fact that this one started in, I guess early December, late November, whatever it was, is just circumstance. Why is it that, every year, it seems to be a different strain of flu? 

FERENTZ: Because the flu virus mutates every year. It changes. And we have to try to predict in America what virus is going to hit us. And we base that upon what flus have been around the world the year before. Sometimes they get it right. In fact, most years, they get it right. This year, the virus was a little bit different. So this particular strain was not in the flu vaccine this year. But the strain that's going around is very similar to one of the strains that was in the vaccine. And even though it may not be 100 percent effective, it really should still decrease the effects of the flu. 

BROWN: Somewhere along the way, I believed I knew that flu shots were for the elderly and for the very young, but not for, let's say, a healthy 55-year-old. Did something change? 

FERENTZ: Well, the flu shots are primarily for people at risk of dying from influenza. And that's still very much people over 65 and the very young, kids from six months to 2 years of age. And while the recommendation is for people 50 and over to get the flu shot, as well as little kids, women who are going to be in their second or third trimester of pregnancy should get a flu shot in the flu season and then anybody with medical conditions that would put them at increased risk of dying of the flu, so younger people with heart disease, younger people with lung disease. So kids with asthma should get a flu shot, people with diabetes. 

BROWN: A couple of quick other things. 

FERENTZ: Sure.BROWN: We heard that, if you feel like you have it, you shouldn't be going to work or going to school. And we'll set that aside for tonight. 

FERENTZ: Yes. 

BROWN: What other things can you do or should you do if you feel the flu coming on? 

FERENTZ: Basically, rest, stay in bed, all the things that your mother told you about. Drink plenty of fluids and try not to expose yourself to other people when you're coughing. And wash your hands a lot, because we tend to cough or sneeze into our hands. And then we'll shake hands with someone. They'll rub their nose. They'll rub their eye. And you can transmit the flu virus that way. But it is mostly sort of quarantining yourself. 

BROWN: And just -- do you have any -- in looking at the CDC stuff that is out there and just, I guess, intuitively, do you have a feel for whether this is peaking or is it there's just not enough data to know?

FERENTZ: It is kind of too early to know. I did read one report about a county in Connecticut that got hit very badly last week. And now 85 percent of the kids from one high school that were out are now back at school. So it would seem that, in that location, maybe it is peaking. So it really is too early to say, but, again, the panic is totally unwarranted. 

BROWN: As it generally is in life. Thank you, Doc. Nice job tonight. 

FERENTZ: Thank you. BROWN: Appreciate it very much. 

FERENTZ: My pleasure. BROWN: A few quick business notes before we go to break. We'll start with the markets today, because it took a couple tries, but the Dow Jones industrials finally did it today, closing above the 10000 mark for the first time in a year and a half. It was a rally across the board, as they say downtown, the Dow up eight-tenths of a percent, the Nasdaq up nearly 2 percent. And the S&P rose about 1 percent, which also sets an 18-month high. Another hopeful note: Mortgage rates broke a string of gains and fell for the week, a sign that the market, at least, believes interest rates will remain low for a while. And one more item. In case you're wondering, gray is the new green. According to DuPont Automotive's yearly service of car colors, dark gray is moving up in popularity, compared to last year. Green -- go figure -- has fallen off the charts. And silver remains the king of car colors. Still to come on NEWSNIGHT: Is the Bush administration changing its tune on immigration? Also tonight, the story of some children willing to risk it all to get into this country. This is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: Whatever else Cabinet secretaries do, it can be argued, the one thing they never should do is make news, at least not by getting beyond the message of the administration they serve, certainly not by wading into an issue, immigration in this case, that also happens to be a political mine field. In Miami, Tom Ridge, the secretary of homeland security, made some news. Here's CNN's Susan Candiotti. 

(BEGIN VIDEOTAPE) 

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): An administration official tells CNN the White House was not happy when Homeland Security Secretary Tom Ridge said it was time to grant not citizenship, but some kind of legal status to up to 12 million illegal aliens. 

TOM RIDGE, HOMELAND SECURITY SECRETARY: Sooner rather than later, we need to deal with the reality that these men, women and families are here, many contributing -- most contributing to their community, paying taxes, paying into Social Security. And we have to legalize their status.

CANDIOTTI: At a White House briefing, a spokesman was quick to point out, Ridge was not talking about a blanket amnesty. 

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: This is a matter that really is under review at this point. We continue to look at it. There's some proposals that have been put forth by members of Congress. 

CANDIOTTI: Ridge made the comments at a town hall Tuesday meeting in Miami. (on camera): What irked the White House, according to an administration official, was Ridge's timing. The administration is still formulating a policy and wants to be the one to front it, especially with the reelection campaign about to kick into high gear. (voice-over): It could be a hot issue next year, especially among a much-sought after Hispanic voting bloc and pressure from Mexico to ease immigration restrictions. 

K.B. FORBES, CONSEJO DE LATINOS UNIDOS: There are no policies. It is blowing in the wind. And the Bush administration has been, see no evil, speak no evil, hear no evil. 

CANDIOTTI: Republican Congressman Tom Tancredo chairs an immigration reform caucus. 

REP. TOM TANCREDO (R), COLORADO: This just drives me crazy, this idea that, oh, we've got 13 million people in here; the best way to actually deal with it is to just say that they all are legal and to essentially abandon the border. It's ridiculous. 

CANDIOTTI: While no one is talking about abandoning the border, what policy the Bush administration policy may have in mind remains to seen, one sure to cause a stir on the campaign trail, especially in key border states.Susan Candiotti, CNN, Miami. 

(END VIDEOTAPE) 

BROWN: Behind every policy debate, of course, are people. And tonight, a look tonight at some of the children caught in this one. Many are traveling alone, trying to reach mothers and fathers, sisters and brothers already in this country. Smuggling kids across the border has become a big business to some, and a growing business. But many kids separated from their families do not make it across. We visited a shelter on the border, the Mexican side, one of many, where the children who get caught wait in limbo, planning their next step. 

(BEGIN VIDEOTAPE) 

BROWN (voice-over): They wait in line to call their loved ones, the lucky ones, who have already made it to the other side. These boys desperately want to go to Alabama and Oklahoma, where their brothers are. 

UNIDENTIFIED MALE (through translator): Because I want to work and I am poor. I want to work. My father is poor.

BROWN: Caught this time, they say they'll keep on trying until they make it. 

UNIDENTIFIED MALE (through translator): Twice, I tried to cross into the U.S. and didn't make it. Immigration got me and sent me back. I'll try to cross again.

BROWN: For now, they wait at this shelter in Nogales, Mexico, where minors stay if they're caught crossing the border, more than 1,000 already this year. 

FERNANDO GUERRERO, SHELTER DIRECTOR (through translator): It has increased a lot. We're talking about four years ago 22, 23, 30 kids per month. Now we have 150 to 200 per month. 

BROWN: The Border Patrol around Tucson has arrested more than 13,000 children this year alone. Many are traveling without their parents, their lives placed in the hands of smugglers who are charging up to $2,000 a head. And those family members who have made it and are now working in the U.S. often foot the bill. 

ANDY ADAME, TUCSON BORDER PATROL: As it becomes harder to cross the border, we see that a lot of parents are crossing by themselves, but are sending for their children, instead of returning themselves into Mexico to cross them. And that's where they fall into many dangers. 

BROWN: A record 150 people have died in Arizona this year, six of them children. This is Lileana (ph). She is 5 and there is only one place in the world she wants to be. 

UNIDENTIFIED FEMALE (through translator): The other side with my mom. 

BROWN: Her parents made it to Los Angeles and then paid a smuggler to take Lileana across the desert, traveling with a group she had never met. Lileana says she was scared, but she also says she wants to try again, hopefully with someone she knows. 

UNIDENTIFIED FEMALE (through translator): I'll go there with my uncle.

BROWN: Shelter director Fernando Guerrero is frustrated over what he sees as a resolving door of children willing to try the deadly trek again and again. 

GUERRERO (through translator): Definitely, most of the times, when they try to cross again, we will see them here. We see them here three or even four times. 

BROWN: That's because the dangers of the desert mean little to these children. All they know is that a dusty road and another try are all that separates them from a brother or a job or a family or a mother. 

(END VIDEOTAPE) 

BROWN: After the break, we'll talk with James Ziglar, the former head of the Immigration Service. This is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: Segment seven continues. More on the knotty question of immigration and national security and politics. And they're all in play here. James Ziglar is the former commissioner of the Immigration and Naturalization Service. Currently, he's a visiting professor at George Washington University School of Law. Good to have you with us. Maybe this is just frighteningly simplistic, but why does the country have to deal with this? You've got these people in the country. They're clearly here. They're working. By and large, they're working. Why do we have to change their status into anything? 

JAMES ZIGLAR, FORMER INS COMMISSIONER: Well, the reality is that you have somewhere between eight and 11 million people who are here in undocumented status, i.e., they're illegal.That fact alone indicates to me that you've got a problem with your immigration system, as well as with your enforcement. The reason we need to deal with it is because what we have in front of us are 11 million people, let's say, that we don't know who they are officially, also that we have an underground that necessarily engages in fraud and that sort of thing, and is frankly subject to blackmail, extortion and that sort of thing. And we're creating an underclass in this country which has its own set of cultural, social problems, something that the president recognized in his efforts prior to September 11 to work out an arrangement with President Fox. 

BROWN: I was going to say, the president, because, I assume, or at least in part, because he was the governor of a border state, seemed pretty sensitive to trying to fashion some sort of deal. And then, bang, 9/11 came and the whole political landscape, if not the national security landscape, changed. 

ZIGLAR: Well, that's true. I believe that the president still is very sensitive to this issue. And I think he has a very practical, realistic point of view on it. Obviously, the politics of it make it difficult at this point to be out there out front on it. But I do believe that the president is committed in the long term to fixing this problem and to bringing some justice into it. 

BROWN: Talk about what a fix might look like. 

ZIGLAR: Well, I don't think there is going to be one big fix.What I think is that we're going to see incremental changes coming along. For example, Senator Craig, Senator Hagel, Senator Kennedy, Congressman Berman have proposed some changes to fix the agricultural worker area. Congressman Flake, Congressman Kolbe and Senator McCain have another proposal that is a bit wider, but that would grant some sort of legal status to people who are here, but not give them an advantage over people who have come here legally. It would create, in a sense, a punishment, but yet it would give them a legal status and it would ultimately give them a path to being here permanently, if they live by the rules. 

BROWN: The punishment being what exactly? They're not being sent back. They're allowed to keep working and living in this society. What's the punishment? 

ZIGLAR: Well, the punishment would in that case, in that bill, would be a fine that they would have to pay. Plus, they would have to get at the back of the line in order to get a permanent legal status. So those people who came in legally would go to the front of the line. Those people that came here illegally would pay that fine and would get at the back of the line, if you will. 

BROWN: Do you think this is a case where the government or people within the government, everybody sort of recognizes this is a problem, and then, in some respects, is pretty far ahead of the population in terms of the issue itself?

ZIGLAR: Oh, I'm not sure that that's the case. I think there are elements in the population that are very interested in this. And some have very strong views. I think the population in general, probably, in the aggregate, they say, well, this is a really bad thing and I don't want to be part of it. But when they get right down to it and they see what generally is the impact in their community, they have a somewhat different view of it. The fact is that these folks are part and parcel of our social fabric,. They're certainly part of our labor force and a critical part of our labor force. And, frankly, if you were to try to remove eight to 11 million people out of our labor force, we would have a tremendous economic problem. 

BROWN: Yes.In the end, do you think that the politics surrounding particularly the Hispanic vote in the country will drive a solution? 

ZIGLAR: Oh, I think the politics are important.But I think that it's much more than that. I think the social issues that we have, the underclass, the underground, the security issue and not knowing who's here, I think that's a much bigger driver. The politics are important. They always are important. But I don't think that will be the driver for it. 

BROWN: Mr. Ziglar, good to have you with us tonight. Thank you for your time. 

ZIGLAR: Thank you very much. 

BROWN: Thank you. We'll check morning papers after the break.

(COMMERCIAL BREAK) 

(ROOSTER CROWING) 

BROWN: I am so not ready to do this segment, but I'm trying, ladies and gentlemen. OK. Time to check morning papers from around the country and around the hemisphere, OK?We'll begin with "USA Today." If you're traveling, you'll find this under your doorstep or whatever you call it in a hotel. I guess you wouldn't call it a doorstep, but maybe you do. It is Friday tomorrow. And they lead with sports. "This Year's Heisman May Make Fans Gasp." Well, it will me, since I haven't followed this at all. "Saturday's Ceremony Ushers in More Debate and Suspense Than Usual. Winner Might Produce a First or Just Controversy." And there are four finalists, including Eli Manning, is the one guy I had actually heard of in this group. Also, I like this story. "Push is on For a Larger Military. Congress Moves After Years of Downsizing." I guess, when you have got two wars going, you have got to think about that. The flu made the front page of "USA Today" as well.Speaking of in the hemisphere, "The Ottawa Sun." "Au Revoir." Jean Chretien's final day in officer, the prime minister of Canada leaving office. I remember going up to Canada to do the story a long time ago now, it seems like, when he was swept into power. That doesn't sound quite right. He was elected. "The Boston Herald."It sounded like it was a takeover."Flu Fever. Virus Spreads Quickly Across the State and the Nation." That's the way they lead, but I like this story. "The Dynamic Duo." Simon are Garfunkel are like 62 now, I think, both of them, playing up in Boston. They've been touring the country, and something like $50 million worth of tickets sold. But I didn't get to see them. Paul Simon is one of my heroes in life. "Richmond Times-Dispatch" leads with the flu. "Flu Widespread in Two Dozen States." That's their lead. But this story is the one that caught my eye. "Two Men Charged Under Spam Law. Virginia Calls it the Nation's First Felony Case Over Junk E-Mail." Does anybody get any real e-mail any more or is it all junk? You know, all those funny letters. What is that about? "The Philadelphia Inquirer." "Insurers to Cover Nasal Flu Vaccine." That's their lead on the flu. "Bush Defends Policy on Iraq Contracts." "'Men and women from our country risked their lives,'" he said. Another official said of the decision, 'It was a train wreck.'" I guess the administration is of two minds on that. Thirty seconds, is that what you said?

UNIDENTIFIED MALE: Yes. 

BROWN: Thank you. 

UNIDENTIFIED MALE: "Miami Herald." "Six Cubans Guilty of Hijacking." This case was extensively followed in the Miami area, as you would imagine. "Protest Violence Paralyzes Much of Haiti." Is there a sadder place in this hemisphere than Haiti? Maybe there is, but I can't think of it.Ten seconds and I can't find the you know what. Here we go. "The Chicago Sun-Times." The weather tomorrow, "refrigerator." Going to be cold. "Bad Guy Gacy Type Charged in Three Deaths" is the lead story. That's "The Sun-Times."We'll wrap up the day, the top story, and preview tomorrow after the break. 

(COMMERCIAL BREAK)

BROWN: Before we go, a quick recap of our top story, the diplomatic dust-up over barring countries that opposed the war from getting contracts to rebuild Iraq. A few small signs today there might be some give in the White House position. And a Pentagon audit says a subsidiary of Halliburton may have overbilled the U.S. government to the tune of $61 million for gasoline trucked into Iraq. Tomorrow on this program, the government warns us about mercury in tuna, yet intends to relax the standards for mercury emissions from power plants. How can that be? That and more tomorrow on NEWSNIGHT. "LOU DOBBS TONIGHT" is next.Good night for all of us. END

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.comNoncoalition Members; Pentagon Believe Halliburton Overcharged For Gas In Iraq; Rockets Fired At U.S. Green Zone In Baghdad>

Wednesday, December 10, 2003

U.S. Blocks France, Germany, Russia, Canada From Getting Iraq Contracts; Coalition Authorities Detain 41 Iraqis

U.S. Blocks France, Germany, Russia, Canada From Getting Iraq Contracts; Coalition Authorities Detain 41 Iraqis
Aired December 10, 2003 - 22:00 ET

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

AARON BROWN, CNN ANCHOR: Good evening again, everyone.I smiled that crooked half smile today when I overheard someone yelping about the administration's decision not to allow countries who opposed the war from getting any of the big rebuilding contracts.Now, I'll concede it may not be the smartest policy long term. People can disagree about that but really did the French expect they were going to get the goodies?Someone a long time ago said to the victor goes the spoils. It may not heal old wounds and it probably won't help get more international troops sent in but did you really think and did they really think it was going to play out otherwise?Iraq from a number of different forms tonight it is where the whip begins. We turn first to CNN's Nic Robertson who is in Baghdad tonight, Nic a headline please.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Aaron, 41 Iraqis detained just outside of Baghdad believed to have been responsible for the killing two weeks ago of seven Spanish intelligence officials. Meanwhile to the north, two more U.S. soldiers killed -- Aaron.

BROWN: Nic, thank you very much.Next to the White House and what some are calling hardball tactics over billions and billions of dollars for rebuilding Iraq, our Senior White House Correspondent John King with us tonight, John a headline.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Aaron, the White House says it's simply common sense. If you are a country willing to shed the blood or take a political risk in Iraq you can get a contract for reconstruction but France, Germany, Russia and others say this president appears once again to be looking for a fight -- Aaron.

BROWN: John, thank you.On to the Pentagon and word of another tragedy in Afghanistan involving young children CNN's Jamie McIntyre with us again tonight Jamie a headline.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, the U.S. military likes to tout the fact that it takes every precaution humanly possible to avoid unintended civilian casualties which makes it even harder to explain that the human cost in Afghanistan has grown to 15 children with the disclosure that six more children were killed last week in a U.S. raid -- Aaron.

BROWN: Jamie, thank you. We'll get back to you.Finally the school, the drug raid and more repercussions, CNN's Gary Tuchman in Goose Creek, South Carolina, Gary the headline tonight.

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Aaron, the school superintendent here says he did not know about the controversial drug raid before it happened but he told us today he is sorry and it won't happen again as his school board and others are investigated and being sued.

BROWN: Gary, thank you. We'll get to you and the rest shortly.Also ahead on the program tonight a boy who was 12 years old when he was sentenced to life in prison without parole will get a new trial.Later, another in our series of still photography pieces, we visit two civilian hospitals in Baghdad to see what the doctors and the patients are struggling with these days.And, as always, we'll end the evening with a check of your morning papers for tomorrow, a journalistic tour de force, all that and more in the hour ahead.We begin with Iraq and a busy night for the troops of the 82nd Airborne. It was a night of cordoning off neighborhoods and kicking down doors in search of the bad guys. It is a practice some experts worry also alienates a lot of the good guys.But even the toughest critics concede that raids like this are sometimes called for and this one appears, at least for now, to have been especially fruitful. A CNN camera crew went along. Nic Robertson does the reporting.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): As dozens of paratroopers crouch in a dark alley waiting in anticipation of possible trouble, a suspect is led away hands in the air. In the dark the CNN crew on the raid witnessed jubilation of the confirmation the intended target Ismail is captured.By dawn the massive nighttime raid just south of Baghdad under command of Lieutenant Colonel Pete Johnson beginning to wind down. The raid netting 41 Iraqis suspected of being behind the recent ambush that killed seven Spanish intelligence agents completed, according to coalition officials, without a shot being fired.Later in the day shots fired at U.S. troops in the northern city of Mosul, one soldier killed as he patrolled a fuel line. Civilian vehicles caught in the crossfire as troops responded to the attack. Not far away another U.S. soldier killed and three injured by a roadside bomb.(on camera): It is this daily toll that many here hope could abate if Saddam Hussein is captured although no one here is predicting when that could be. Iraq's Governing Council has moved one step closer to bringing him to justice forming a war crimes tribunal.(voice-over): In the courtroom where he may one day face justice for his crimes against the Iraqi people, members of the country's Governing Council announce the process to bring him to trial.

NOOR AL DIN, HEAD OF LEGAL TRIBUNAL (through translator): This tribunal will show how bad the former regime was. It will show which are the states that supported the former regime. This will have a great effect on the future of Iraq.

ROBERTSON: Immediate candidates for trial by the five Iraqi judges leading the tribunal could include Ali Hassan al-Majid, better known to many as Chemical Ali for his alleged role in gassing 5,000 Kurds in 1988. He is currently in coalition captivity although the tribunal will not limit itself to those already captured.Questioned on whether Saddam Hussein could be tried in absentia...

UNIDENTIFIED MALE: Yes.

ROBERTSON: Despite the laughter, the hope that will not be necessary.

(END VIDEOTAPE)

ROBERTSON: They are still looking for Saddam Hussein, as we know, every day. Maybe, Aaron, one of those raids that was witnessed last night will eventually turn him up. That is certainly the hope -- Aaron.

BROWN: There was, I've got a number of notes on this today, a demonstration or a number of demonstrations in Iraq today dealing with terrorism and public safety. What can you report on that?

ROBERTSON: There was a demonstration in Baghdad, one in Karbala, one in Najaf. These were demonstrations that were sponsored, if you will, by parties, political parties that at the moment are quite supportive of the coalition, the Iraqi National Congress, the Communist Party here to name but two.There was also in the city of Ramadi a demonstration of about 100 people. At the same time there was a counter demonstration again of about 70 people trying to counter that. Ramadi is in the Sunni Central Triangle. That town has a lot of anti-coalition activity. Perhaps that was why there was a counter demonstration.But what we're beginning to see here is not a ground swell of support coming out condemning the terrorism yet but these demonstrations were still quite small but it is an indication that perhaps some popular support beginning, just beginning to get behind the coalition's initiatives to target these anti-coalition forces -- Aaron.

BROWN: Nic, thank you very much, Nic Robertson in Baghdad tonight.On to the rebuilding effort and two impulses that seem to be at work within the Bush administration. The first is to get as much help as it can wherever it can as soon as it can. The second would seem to make the first a whole lot tougher.Here again our Senior White House Correspondent John King.

(BEGIN VIDEOTAPE)

KING (voice-over): The president welcomed members of the Iraqi National Symphony to the Roosevelt Room happy to talk music but not about another major diplomatic dust-up. At issue a White House decision to block Iraq war opponents from nearly $20 billion in U.S.- funded reconstruction contracts. Bush critics call it hardball retaliation. The White House prefers to call it rewarding allies.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: These are countries that have been with us from day one. These are countries that are contributing forces that have been making sacrifices.

KING: This Pentagon memo says restricting the big contracts to Iraq war allies should encourage the continued cooperation of coalition members but the administration also hopes the lure of big reconstruction contracts might convince other nations to offer troops or, as the memo put it, limiting competition for prime contracts will encourage the expansion of international cooperation in Iraq.Sixty-three countries were declared eligible for contracts worth $18.6 billion for major coalition allies like the United Kingdom, Australia, Italy, Spain and Poland to Costa Rica, Latvia, and tiny Micronesia. Left off were opponents France, Germany, Russia and even Canada, which disagreed with the Iraq war but offered troops early in Afghanistan.Canada's incoming prime minister called the decision hard to fathom. France suggested it violated international law and Germany's foreign minister promised a protest.

JOSCHKA FISCHER, GERMAN FOREIGN MINISTER (through translator): We noted the reports today with astonishment and we will be speaking about it with the American side.

KING: Russia lashed back by saying it would not heed Washington's call to forgive $8 billion in Iraqi debts.

SERGEI IVANOV, RUSSIAN DEFENSE MINISTER: As far as the Russian government's position on this it is not planning any kind of write-off of that debt. Iraq is not a poor country. 

(END VIDEOTAPE)

KING: Now the president had telephone conversations today with the president of Russia, the chancellor of Germany and the president of France. All three complained about this new U.S. policy. Mr. Bush defended it but, Aaron, he also promised to "keep the lines of communication open."

BROWN: The Russians perhaps had the most interesting say in this because one of the goals of the administration is to get the Iraqi government when it's finally formed in a stable economic way and that includes forgiveness of a lot of debt, the Russian debt and others. Do you sense a backlash here?

KING: That is why some simply including Republican and Democratic members of Congress simply do not understand this. They say they think the president is eager to pick yet another fight over this at a time when he needs help, whether it is financial or diplomatic support in post war Iraq. France and Russia and Germany are never going to send in troops. The White House says that is not a precondition for the contracts. So many say why then pick another fight. This administration says the U.S. taxpayers will understand. If you shed blood in Iraq you should get the contracts.

BROWN: John, thank you very much, Senior White House Correspondent John King.Afghanistan now after an incident this weekend in which nine children were killed, another has come to light and with it six more young bodies. These are stories that break hearts here and there. They are stories that can make winning hearts and minds especially hard and they are, of course, the sort of horrible things that happen in war and always have.Here's CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): The U.S. was already investigating how nine children were killed in an air strike by U.S. A-10 aircraft Saturday at this Afghan village when it discovered a Special Operations raid the previous day also results in the deaths of children.The target was a compound in Gardez used by a local mullah said to have Taliban and al Qaeda ties. When the smoke cleared six children were found dead buried under a collapsed wall along with two adults.

LT. COL. BRYAN HILFERTY, U.S. ARMY: We don't know what caused the wall to collapse because although we fired on the compound there were secondary and tertiary explosions.

MCINTYRE: The news that six more children were killed came as Pentagon officials were already apologizing for the previous nine deaths and insisting everything possible was being done to avoid a repeat.

DONALD RUMSFELD, DEFENSE SECRETARY: Our forces take great care to avoid civilian casualties and needless to say they and we deeply regret it.

GEN. RICHARD MYERS, JOINT CHIEFS CHAIRMAN: I can tell you the kind of vetting that the process goes through from the beginnings of intelligence to the final operation is exquisite and we're not going to be perfect.

(END VIDEOTAPE)

MCINTYRE: Not perfect exactly and that imperfection appears to lie with the intelligence, which Pentagon officials say did not indicate that there were children at either site. Human rights groups have criticized the Pentagon in the past for being too quick to act on uncorroborated intelligence or even questionable tips. That's something that the Pentagon is denying but at the same time both of these incidents are under investigation -- Aaron.

BROWN: Aside from the obvious tragedy of it all that children are being killed this it would seem from here at least creates problems for a government in Afghanistan that in some respects is just holding on.

MCINTYRE: It creates problems for the U.S. military and, as you said, winning the hearts and minds and also for the Karzai government which is trying to extend its rule outside the capital.It has to be seen as taking a hard line with the U.S. about stopping these kinds of accidents in which a large number of children are killed. Now, the U.S. military has tried to reach out to these villagers but, as you can imagine, there's not much that you can do for a family that's lost as many children as has been lost in these incidents.

BROWN: Certainly not, Jamie thank you very much, Jamie McIntyre at the Pentagon tonight.On to the search for terrorists here at home, in Minnesota federal authorities say they have arrested a man allegedly tied to al Qaeda and are holding him as a material witness. He's said to have provided information about Zacarias Moussaoui, the al Qaeda operative charged as a conspirator in the September 11 attacks. It's not clear whether the two men knew each other. Moussaoui, you'll recall, was also arrested in Minnesota after a flight school told the FBI he wanted to fly a jumbo jet when he could barely handle a private plane.Ahead on NEWSNIGHT tonight the 12-year-old who got life without parole for murdering a playmate while pretending, he says, to be a professional wrestler will get a new trial.And, in South Carolina the drug raid at the high school and the superintendent who says he knew nothing about it.From New York this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Someone once said you get justice in the next world. In this world you've got the law. And in Florida the law allows for a sentence of life without parole for killing a 6-year-old girl even if the killer happened to be 12 at the time even though the state was willing to offer a drastically lower sentence in exchange for a guilty plea, three years.To an Appeals Court in Florida the process that produced the sentence was an imperfect application of the law. To many the decision will likely be seen more simply, common sense.Here's CNN's Susan Candiotti.

(BEGIN VIDEOTAPE)SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): How he looked at age 12 when he killed a little girl. How Lionel Tate looks at 16 after now serving a mandatory life sentence. His attorney described Tate's reaction to winning a new trial.

RICHARD ROSENBAUM, TATE'S ATTORNEY: I heard him scream yes and then I heard a bunch of the guards in the jail clapping for Lionel.

CANDIOTTI: A three judge Appeals Court did not mince words in ordering a new trial for Lionel Tate ruling it was a constitutional error not to determine whether he was mentally competent before trial."Questions regarding Tate's competency were not lurking subtly in the background but were readily apparent."

ROSENBAUM: We can't try people unless they're competent. That's just not fair. They can't assist in their defense.

UNIDENTIFIED FEMALE: Verdict, we the jury find as follows as to this indictment. The defendant is guilty of murder in the first degree as charged in the indictment.

CANDIOTTI: Lionel Tate was 12 years old in 1999 when a jury later found he pummeled to death 6-year-old playmate Tiffany Eunick. A jury found she suffered a fractured skull and injuries to her brain and internal organs. Part of her liver was detached. Premeditated murder said the state. The defense argued it was an accident. Tate was play wrestling.Not in dispute, according to the Appeals Court, Tate's IQ of 90 and his maturity that of a 6-year-old. Tate's lawyer says Lionel has dropped 40 pounds, suffers from an eating disorder yet is an honor student behind bars.Governor Jeb Bush may consider clemency depending on whether the state retries the case or seeks further appeals.

GOV. JEB BUSH (R), FLORIDA: My hope is that young Lionel is progressing, that he's developing in maturity and that he's abiding by the rules.

CANDIOTTI: The state has 15 days to ask for a rehearing. As for ordering a competency evaluation now to apply retroactively, the Appeals Court says no can do.Susan Candiotti, CNN, Miami.

(END VIDEOTAPE)

BROWN: We have more tonight on the drug raid at a high school in Goose Creek, South Carolina. Some day all the facts on this will eventually come out. The police will explain why they stormed into the school, guns drawn, ordering kids around like common criminals. The principal will explain what he was thinking and what he knew about the plan but neither has really happened yet.What happened today was significant. The head of the school district, viewing the tape with us, said it would never happen again. The reporting was done by CNN's Gary Tuchman.

(BEGIN VIDEOTAPE)

TUCHMAN (voice-over): This video shot by police of the controversial high school drug raid was kept under wraps until it was acquired by CNN on Tuesday. Even the boss of the school system says he hadn't seen it until we showed it to him.So now that you're seeing this for the first time how hard is it to see it all?

CHESTER FLOYD, GOOSE CREEK SUPERINTENDENT: It bothers me greatly. It's just so unusual and something that I've never seen before.

TUCHMAN: Superintendent Chester Floyd's school district is the target of a class action lawsuit, along with the local police department and the city of Goose Creek, South Carolina for the raid which resulted in guns being drawn by police, students being handcuffed and no drugs being found.Are you sorry about it?

FLOYD: I'm very sorry that it happened.

TUCHMAN: One hundred seven students who were at the Stratford High School before classes began were detained in the hallway. The principal had asked for police assistance because he said there had been reports of drug related activity in the area where the raid took place. Students watched warily as a barking police dog sniffed around and tossed some of their book bags.

FLOYD: I don't think any of our school officials thought that there would be any guns that would be drawn.

TUCHMAN: So why were they? Police do not want to say much but did say off camera: "We would like to respond but our hands are tied because it's an ongoing investigation." The superintendent wasn't as shy.

FLOYD: Whether or not it's legal and right is for someone else to decide but I'm sorry that it happened and I don't think there's any likelihood or possibility that particular method of operation will be used in Berkley (ph) County schools ever again.

(END VIDEOTAPE)

TUCHMAN: Superintendent Floyd says he was not told by the principal this drug raid was going to take place but he says that's standard operating procedure for more conventional drug searches. This case is now being investigated by the South Carolina attorney general and the FBI.And, Aaron, I want to read one line to you on the class action lawsuit, it kind of sums up the atmosphere in the hallway that day. It says: "The Czechoslovakian shepherd which I guess is a cousin of a German shepherd, did not appear to respond to commands. The dog frightened the students who with their hands behind their heads or bound behind their backs felt helpless to defend against an attack -- Aaron.

BROWN: Well there are lots of interesting things here. You and I have been e-mailing back and forth on this. One of them has to do with the police department's own guidelines where the dog is concerned. Just because of the things you just mentioned their guidelines say that the room or the area where the dog is working should be cleared of personnel before the dog is brought in, something that clearly didn't happen there.

TUCHMAN: Well that's a major part of the lawsuit and that's what happens in these conventional drug searches is the dogs come in. They search lockers. They search book bags but with none of the students present and that did not happen this time.

BROWN: Gary, thank you very much, Gary Tuchman in South Carolina.Given truth serum even Lee Malvo's legal defense team might concede they've got a tough case on their hands, the sniper trial. Successfully conducting an insanity defense is difficult at best and harder still given the evidence already on the table, some of it from Mr. Malvo himself.Today the defense presented what's expected to be its final expert witness. The case is being covered by CNN's Jeanne Meserve.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Lee Malvo was legally insane at the time of the sniper shootings, according to two defense psychiatrists. In the words of Dr. Neil Blumberg: "Lee Malvo was unable to distinguish between right and wrong and was unable to resist the impulse to commit the offense." Legal experts say that testimony may not be enough to convince the jury.

STEPHEN SALTZBURG, GEORGE WASHINGTON UNIVERSITY: The care and the planning and the leaving of notes, the drawings that Malvo left in the jail and his confession to the police, all of those things are going to speak I think more loudly than the psychiatrists are.

MESERVE: Under cross-examination from prosecutor Robert Horan the defense psychiatrist diverged on whether Malvo was insane when he shot Kenya Cook in Tacoma, Washington eight months before the sniper slayings. Blumberg said he was but Dr. Diane Schetky said she believed Malvo did know right from wrong at that point.

BARRY BOSS, DEFENSE ATTORNEY: It's damaging to the defense because it shows that at a point at which he was not indoctrinated he understood right from wrong yet he was still willing to kill.

MESERVE: Blumberg testified that Muhammad told Malvo, Cook's aunt Isa Nichols (ph) was an evil woman who he alleged had taken $1 million of his money, helped his ex-wife take his children and that she should pay by losing a family member every year for three years. Blumberg said Malvo, afraid of not complying, spoke with a friendly Kenya Cook for several minutes before shooting her in the face. But Schetky testified the murder left Malvo so scared and conflicted that he soiled his pants afterwards.(on camera): Schetky also testified that sniper victim Iran Brown (ph) was not shot in the head because, according to Malvo, he was conflicted about the shooting of a child. That would appear to contradict Malvo's statements to Schetky that he was the spotter at the Tasker Middle School.Jeanne Meserve CNN, Chesapeake, Virginia.

(END VIDEOTAPE)

BROWN: Coming up on NEWSNIGHT tonight the missing student and questions of why the man arrested in the case in North Dakota was ever on the loose in the first place.We'll talk to Minnesota's attorney general.Around the world this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Today the sheriff of Grand Forks, North Dakota apologized to the parents of Dru Sjodin for saying he did not expect to find their daughter alive. The 22-year-old college student has been missing for 18 days now. Her blood and a knife we are told was found in the car of the man charged with kidnapping her, a man named Alfonso Rodriguez, a man convicted of rape with a history of attempted kidnappings and violent assaults, a man released from a Minnesota state prison last May after serving 23 years, his sentence.Which raises the question, why was the man classified as the most dangerous type of sex offender, and he was level three, not in treatment of any sort following his release? It's a question a lot of people are asking in the upper Midwest tonight, including Minnesota's Attorney General Mike Hatch who joins us from Minneapolis tonight, nice to see you sir. Thank you.

MIKE HATCH, MINNESOTA ATTORNEY GENERAL: Thank you.

BROWN: Minnesota like a good many other states has this civil commitment law which allows the state or counties I think as it's applied in Minnesota to hold sex offenders past their release date.

HATCH: Correct. The year before the release of a sex offender the Department of Corrections does an evaluation. If they determine it's appropriate to refer for civil commitment they will do so by contacting the county attorney and at least in the rural counties our office will then work with that county attorney in developing the civil commitment petition.

BROWN: Do you know, I gather in this case the corrections department and the people who, I don't want to convict Mr. Rodriguez here, he's entitled to a trial and a presumption but in any case he was on the loose. Do you know what their files said on him in terms of his likelihood to re-offend?

HATCH: Well, I think I can make the following comments by referring to what's already been in the media and that is, is that he had been charged with two separate rapes in 1974. I believe he was approximately the age of 20. He had been convicted, placed into a sex offender program in St. Peter. In 1978 he had been placed in a halfway house in Mankato. He then contacted Saint Peter, asked to be readmitted to the facility because there had been a number of rapes in Mankato and he thought he might be implicated. Prior to getting back into Saint Peter, he had been arrested for those rapes and charged. He had been acquitted. He had a hung trial and then an acquittal on the charge of rape in Mankato, completed his treatment at Saint Peter through 1980, was released back to -- released from the program, went back to Crookston in 1980, had abducted another woman, stabbed her, attempted, we believe, sex, was charged with kidnapping, convicted, received a maximum sentence of 20 years, plus three more years from the prior sentence. He had refused sex offender treatment in prison. He had refused alcohol, chemical dependency treatment, even though he had a history of that. And the two, alcohol and chemicals, are well known to reduce the ability of the individual to fight the impulse. 

BROWN: Yes. 

HATCH: So he was released. The only comment that I'm aware of made that was mitigating was that he was 50 years of age and, therefore, for reasons that I'm not clear, somebody thought he might be less likely to recidivate at that point. But we do know that, at least as an adult, he could not put 12 months together without having a charge, an incident. 

BROWN: Obviously, in your recitation there, there were plenty of red flags to the corrections department, which, I read today, has now decided that all level three sex offenders -- that is the most serious level in the state -- will be referred to county prosecutors. Can the county handle the additional work -- counties handle the additional workload? 

HATCH: Well, I -- you're raising a question that's coming up not only because of constitutional concerns, but also budgetary issues. But most important, it's common sense. The level three offender is classified pursuant to a community notification program. It's a different statute and different gradation of evidence, as related to -- as opposed to the sex offender program. In a sex offender program, you're looking at people. They're making a psychiatrist evaluation and determining that these people have an utter lack of ability to control their sexual impulse, that it's demonstrated by repeated sexual behavior that's aberrant, and that they're likely to reoffend. That's a strong standard. And those are the people who are committed. The Supreme Court, appropriately, has been concerned with the use of the civil commitment process, making sure that it's for treatment, not simply for punishment. 

BROWN: Yes.

HATCH: And so it's important that those standards be adhered to. In a level three criteria, which you just described, it's a different criteria. There's probably, I'd say, three times the number of people who are referred out on a level three. The statutes in our state require the department, one year prior to release, to evaluate for commitment. 

BROWN: Right. 

HATCH: That's a different evaluation than the level three community notification, which is done three months prior to release. And what we're going to get -- what we need to watch here is to make sure we're adhering to constitutional standards and that the state is appropriately implementing and administering this program and not going to destroy the program by overzealous behavior. 

BROWN: I assume that you and lots of residents in your state and, we, too, will be watching to see how it plays out. Thank you. 

HATCH: Well, we're all upset. 

BROWN: I'm sure that's true. Thank you very much, Mike Hatch, the attorney general in the state of Minnesota. Quick business items here, some signs of a bullish season out there. Computer-makers say they're getting strong sales since Thanksgiving. Retailers predict double-digit growth compared to last year. Encouraging words today from John Chambers, CEO of Cisco. He says business customers have started budgeting more for tech, the first time that's happened in several years. The FDA is phasing in regulations to require bar codes on hospital doses of medicine, this to prevent patients from getting the wrong drug by accident. Scan the drugs, scan the patient's wrist band, and there you have it. Right now, only a few hospitals have adopted the system because so few drugs are bar coded. A powerful voice in the business and especially the world of politics think is gone. "Wall Street Journal"'s Robert Bartley died today of cancer. As editorial page editor, he pushed mightily for tax cuts and supply-side economics, as well as the privatization of many government functions. Mr. Bartley was 66. The markets barely moved an inch today, all the indexes finishing the day down just a smidgen. Smidgen is a technical Wall Street term. We'll explain another night. Still to come, we'll address a couple of campaign issues, including campaign finance reform and the question of what now for the Democrats who aren't named Howard Dean. This is NEWSNIGHT. 

(COMMERCIAL BREAK)

BROWN: Money and politics now and what could be fairly called the most significant ruling on the subject since Watergate on the role of money in politics. Today, the U.S. Supreme Court upheld a controversial ban on large unregulated contributions known as soft money. It also ruled in favor of limits on some political advertising. The justices split 5-4 on this one. And there were bitter dissents, as there tends to be in a court so sharply divided as this one is.Reporting the story, CNN's Bruce Morton.

(BEGIN VIDEOTAPE) 

BRUCE MORTON, CNN NATIONAL CORRESPONDENT (voice-over): The court upheld 5-4 the two most important provisions of the campaign finance law: a ban on soft money and restrictions on so-called issue ads by independent groups that target a candidate. Soft money was the green flood that poured into recent campaigns, supposedly for activities like party building, but often for plain old campaigning, TV ads, whatever. Regardless of bans on union or corporate money, regardless of limits on individual contributions. Now, campaigns will have to rely on what's called hard money: limited contributions from individuals. The court ruled in effect the Congress can regulate money to prevent the real or perceived corruption of politics. As for the issue ads, the court noted that it was regulating this kind of expression, not banning it. Groups running issue ads will have to raise the same hard money that candidates will. They can't just spend union or corporation funds. The court, as on many issues was split 5-4, and Sandra Day O'Connor was the swing vote. John Paul Stevens, David Souter, Ruth Bader Ginsburg, Stephen Breyer joined her in signing the majority opinion. Chief Justice William Rehnquist, Antonin Scalia and Clarence Thomas dissented on most of the law. Anthony Kennedy said he would vote to apply a limited soft money ban. (on camera): The court's decision upholding the law means the 2004 campaigns will continue playing by those rules. The law was presumed to be constitutional, unless and until the court said it wasn't. Will this fix campaign financing forever? No. O'Connor and Stevens wrote for the majority -- quote -- "Money, like water, will find an outlet. What problems will arise and how Congress will respond are concerns for another day."Bruce Morton, CNN, Washington.

(END VIDEOTAPE)

BROWN: Over the last few days, we have talked a lot about the state of play among the Democratic candidates. Dr. Dean is the clear front-runner, but what of the rest? Most other programs would turn to other Democrats to get their assessment. We've done a little of that, but we thought, why not check the views of a respected Republican operative?Mike Murphy is that. He has run some important campaigns for Republicans, including Arnold Schwarzenegger and John McCain. And we're glad to have him with us tonight. Nice to see you. 

MIKE MURPHY, REPUBLICAN POLITICAL STRATEGIST: Good to be here.

BROWN: Fill in a blank for me. 

MURPHY: OK.BROWN: It's been a really bad week for...

MURPHY: I actually will be contrary to conventional wisdom and say Howard Dean. Even though I think he is going to be the nominee, the laws of gravity have now shifted in the contest. I think the Gore endorsement has made him the unquestioned front-runner.

BROWN: Yes.

MURPHY: It's made him the almost de facto nominee now. He has such advantage in money and polling in the early states. So now it's a very clear race for the next 40 days to Iowa. It's a referendum on Dean. And it has organized the lives of every other candidate around one principle, hurt Dean in Iowa. So Dean now has what he hasn't had for seven months, which is, he is now the guy defending high expectations. 

(CROSSTALK) 

BROWN: Honestly, hadn't he sort of been in that spot for, I don't know, the last five or six weeks anyway? 

MURPHY: Yes, I think he's been kind of getting in that position. But now with Al Gore, the nominee, coming forward to endorse him like that, the expectation leverage is all, for the first time, I think working against Dean. Now, I think he's going to overwhelm. I think he's going to run the table and win. But if there was ever a window now in a clear race, it's here. 

BROWN: Who is position -- who is in the best position to take advantage of that window, if in fact it exists? 

MURPHY: Well, I think the guy with the clear shot is Gephardt, because, right now, Gephardt has the most in the place where Dean could stumble early on.

BROWN: Iowa.

MURPHY: And I think now there is kind of a secret Gephardt fan club. Some of these other folks who are really hanging on by a thread are probably hoping Gephardt breaks him in Iowa and figures that Gephardt won't have the money to roll out. But the damage to Dean by Gephardt in Iowa could create opportunities in New Hampshire and other places. All these guys are grabbing at a thin hope now, because the Dean thing has become so muscular. Dean is interesting because, normally, the outside insurgent doesn't have any money. He has excitement and has all kinds of wonderful things, but no money. Dean has got the money and the outside sense of insurgency. We've never had one of those before. All of us McCain guys, like, wake up in the middle of the night screaming.

BROWN: Yes. 

MURPHY: If we had had Dean's dough or his calendar, we would all be eating free food in the White House right now. 

BROWN: Well, it might have worked that way. You never know. I hear, though, it was a close election. 

MURPHY: Yes. Yes. Yes.

BROWN: Do you think that -- do Republicans still believe -- speak for all Republicans now, if you don't mind. Do Republicans still believe that he, Dr. Dean, is the George McGovern of our time? Or are they beginning to be a little less cocky? 

MURPHY: Dumb Republicans think that. Smart Republicans are worried about the guy. I don't think he's the best nominee they could nominate. I think they got other, stronger people. But if we're complacent about Dean, we're making a big mistake. The economy is coming back. And that's good for the president; 70 days ago, I think the president was in some real serious trouble. But the economy is the thing that drives presidential elections. It's coming back. That's good for him.But we shouldn't underestimate Dean. There's one true fact about Howard Dean. He started at 3 percent, not a serious candidate. And he has beaten bigger folks than him all along the way. So I think we ought to be appropriately paranoid about the guy. 

BROWN: Do you worry, as a Republican, about the -- there is a certain anger in Dr. Dean and in Dr. Dean's supporters that does seem to be -- that has touched a core out there. 

MURPHY: Right. 

BROWN: Does that worry Republicans? 

MURPHY: Well, I think there is a passion factor that he has that people respect. But I think the big mistake Dean could make is -- he has run a brilliant primary campaign based on anger. He's kind of like an insult comic against the president. It's like, if they nominated Don Rickles, they would feel great about it. He's going to have to pivot when he is the nominee, because, otherwise, he's going to use the Internet and everything else he has to very well organize a losing 40 percent of the vote. And so the question is, is Dean a moderate faking it to be liberal now in the primaries and he will reorient himself and become more formidable after he's nominated, or will he keep the same shtick he has now and not change it? If he doesn't change, I think, if he keeps the same act going, I think we'll slaughter him. 

BROWN: Will you come back from time to time and chat with us more about that? 

MURPHY: Of course, yes. Absolutely.BROWN: Nice to see you. 

MURPHY: Good to be here.

BROWN: Mike Murphy.Ahead on NEWSNIGHT: Iraq in still life, life in two civilian hospitals in Baghdad, seen through the eyes of a still photographer. Where else would you see it? This is NEWSNIGHT. 

(COMMERCIAL BREAK) 

BROWN: We began in Iraq and we return there now. Something to consider from the World Health Organization, we found it sobering today. Before the first Gulf War, Iraq's health system was considered one of the best in the Middle East. Conditions rivaled those of other middle- or high-middle-income countries. The majority of Iraqis had access to an extensive network of health care facilities, well-equipped and staffed. That was then. Tonight, a picture of now, actually, a series of pictures that first appeared in the journal "Acumen." The photographer Eric Grigorian talked to us about what he saw. 

(BEGIN VIDEOTAPE) 

ERIC GRIGORIAN, PHOTOGRAPHER, "ACUMEN": "Acumen Journal of Sciences" wanted me to photograph an Iraqi doctor to show what it is they go through daily as a doctor in Iraq. Now, I did two hospitals. One was the main Baghdad hospital, which I photographed in the emergency room. And the second with the children was in the children's hospital emergency room. As a journalist, I think, sometimes, you need to see many things to kind of really understand if this is the norm. I think the dedication the doctors have is up to the standards of, let's say, any doctor here in the states. But, at the same time, every doctor I spoke to was frustrated with what they were doing. Hussein (ph) is a doctor I photographed in the children's hospital. The picture of the infant was in the dying stages and needed an incubator, which the hospital was lacking. Hussein had to turn away the infant, knowing very well the infant was going to die and knowing that there are no other hospitals that had those incubators. The other doctor, Mohammed (ph), he had been working about six years as a doctor. And he was just going to get his certificate that he was a doctor. He was just going to pick it up, because, during Saddam's regime, he was not allowed to have it, because there was a fear the doctors would leave the country. Because of the lack of nurses, or no nurses in this instance, families have to kind of take care of their own patients at the same time. Things that a nurse should be doing ends up that the family has to take care of it, making sure the patient is cool, feeding the patient, changing the sheets sometimes -- again, a lack of nurses. The doctor is basically pumping the I.V. to get the patient stabilized, to get him into surgery. A nurse should be taking care of that portion of the procedure. The doctor ended up doing the nurse's job. And, meanwhile, there's patients that he could be seeing and doing other things. Iraq isn't just about whether they're liberated or not. It's what they're facing now and the lack of resources they have now and how that is affecting their daily lives. 

(END VIDEOTAPE) 

BROWN: We'll check morning papers after the break. 

(COMMERCIAL BREAK) 

(ROOSTER CROWING) 

BROWN: OK, time to check morning papers from around the country. I told viewers in our e-mail today I was in somewhat of a cranky mood. And this segment is about to prove it, because everything I'm looking at is making me annoyed. "The Chattanooga Times Free Press." "To Give the News Impartially, Without Fear or Favor." "Tougher Open Container Law Unlikely to Pass. State Lawmakers Say They Don't Expect Much Support For Efforts to Ban All Alcohol Consumption in Vehicles." Come on. Drink at home, OK? Or don't drink at all. Don't drink in cars. There ought to be a law. "Miami Herald." I would front-page this story anywhere in the country, and certainly in Miami. "Boy Wins New Trial in Killing." Told you this story earlier. An appeal court grants new trial to Lionel Tate, who was sentenced to life in prison without parole for killing a 6-year-old girl. It was a terrible and sad story. I'm not sure that the outcome yet makes any sense. We will see if it does."The Boston Herald." "Flu Kills Teen. Fatal Virus Suspected." Wait a second. Did the flu kill the teen or did the fatal virus? Well, we don't really know, but that's the headline anyway. And also, up at the top, the national obsession with the Clintons continues. "Hillary Won't Real Out V.P." -- or "Veep," I guess.How we doing on time, Terry (ph)? Forty-seven."The Philadelphia Inquirer." I just like this story because I thought it was a really good story idea. "The Duel of Holiday Dances. Nutcracker Seem to Holding Their Own Against the Rockettes," I guess both going on in Philadelphia right now, though how the Rockettes got to Philly, I don't really know. "The Oregonian." Thank you. I guess they're wrapping up what has been a very good series for a very good newspaper, "The Oregonian." "Soothing the Tried Soul One Child at a Time." This is a series described -- or titled "A Place Where Children Die." That's "The Oregonian." Nicely done. "The Chicago Sun-Times." The weather in Chicago tomorrow, "Froze toes. It's winter coming." "Insider Wears Wire to Nail Gang Killer" is the headline in "The Sun-Times," and lots of other cool stuff on the front page. We'll take a break and wrap up today's top story and preview tomorrow after this.

(COMMERCIAL BREAK) 

BROWN: A quick update of our top story tonight. The military says, insurgents behind the killing of seven Spanish intelligence officers in Iraq have been caught. They were swept up in a night of raids across the country, more than 50 raids in all, involving the 82nd and 101st Airborne and others. Tomorrow night, right here on this program, a case of what appears to be homegrown terrorism involving a white-collar group, illegal weapons and deadly chemicals. That's NEWSNIGHT tomorrow. 

"LOU DOBBS TONIGHT" is next.Good night for all of us. 

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.comIraq Contracts; Coalition Authorities Detain 41 Iraqis>