Dan Rather Reports

Episode Number: 228

Episode Title: The Prime Minister in Exile

Description: Former Pakistani Prime Minister Benazir Bhutto is attempting to return to her homeland after years in exile. She's backed by the Bush administration, which is trying to keep the government of America's key ally from collapsing. Also, a rare and candid interview with the Mayor of New York, Michael Bloomberg. Plus story updates.

Transcript:

TONIGHT... PRIME MINISTER IN EXILE

A VOICE FROM PAKISTAN'S PAST WHO SAYS SHE'S THE ANSWER TO THIS CHAOTIC COUNTRY'S FUTURE THE PEOPLE OF PAKISTAN WANT PEACE AND THEY WANT JOB OPPORTUNITIES. THEY WANT HOPE AND IF I'M ELECTED PRIME MINISTER OF PAKISTAN, I CAN MOBILIZE THEIR SUPPORT TO GET RID OF THIS COMMON THREAT OF TERRORISM THAT WE FACE. MAYOR MIKE, A RARE LOOK AT THE LEADER OF NEW YORK CITY, HIS NATIONAL AGENDA, AND THE QUESTION EVERYBODY IS ASKING

YOU SAID TO ME THAT YOU'RE ENJOYING BEING MAYOR. YEAH. IT'S A GREAT JOB. 2 TERMS WOULD BE ENOUGH FOR YOU. ABSOLUTELY. I BELIEVE YOU SAID I'M GOING INTO PHILANTHROPY. YOU'RE AWARE THAT A LOT OF PEOPLE THINK THAT IF ONE BELIEVES THAT, ONE WOULD BELIEVE WATER RUNS UP HILL. WELL I DON'T KNOW WHAT I'VE GOT TO DO TO PROVE IT, BUT TIME WILL. WELL. LET'S GET IT OUT OF THE WAY. ARE YOU RUNNING FOR PRESIDENT? ALSO UPDATES: WE LOOK BACK AT THREE STORIES TO SEE WHAT HAS HAPPENED SINCE THEY FIRST RAN.

TONIGHT ON DAN RATHER REPORTS

GOOD EVENING FROM NEW YORK. WHEN 9/11 PUT THE SPOTLIGHT ON AFGHANISTAN, THE BUSH ADMINISTRATION TURNED TO NEIGHBORING PAKISTAN. MILITARY AND DIPLOMATIC PRESSURE TURNED WHAT WAS ONCE THE TALIBAN S BIGGEST SUPPORTER INTO A CENTRAL ALLY IN THE WAR ON TERRORISM, AND BILLIONS OF DOLLARS IN AID PROPPED UP THE REGIME OF PAKISTAN S RULER, GENERAL PERVEZ MUSHARRAF, WHO HAD SEIZED POWER TWO YEARS BEFORE IN A MILITARY COUP. BUT MUSHARRAF S HOLD ON POWER HAS BEEN STEADILY SLIPPING IN RECENT MONTHS. WITH POLITICAL UNREST SIMMERING IN THE COUNTRYSIDE AND ERUPTING INTO FULL-BLOWN VIOLENCE IN PAKISTAN'S CAPITAL, ISLAMABAD, THE GENERAL'S FUTURE APPEARS VERY MUCH IN DOUBT. INTO THIS AIR OF UNCERTAINTY COMES NEWS THAT MUSHARRAF AND PAKISTAN'S FORMER PRIME MINISTER BENAZIR BHUTTO ARE ENGAGED IN TALKS TO WORK OUT A POWER SHARING AGREEMENT THAT WOULD BRING BHUTTO BACK TO ISLAMABAD. THE BEHIND-THE-SCENES PLAYER IN THESE NEGOTIATIONS IS THE UNITED STATES, WHICH IS PRODDING THE TWO POLITICAL RIVALS TO COME TO A SETTLEMENT THAT COULD STABILIZE PAKISTAN'S SHAKY CENTRAL GOVERNMENT. WHAT'S AT STAKE IS NOT ONLY THE FIGHT AGAINST AL QAIDA AND THE TALIBAN, BUT ALSO PAKISTAN S ARSENAL OF NUCLEAR WEAPONS, WHICH, IN A WORST-CASE SCENARIO COULD FALL INTO THE HANDS OF ISLAMIC EXTREMISTS IF MUSHARRAF S GOVERNMENT SHOULD FALL.

BENAZIR BHUTTO HAS BEEN LIVING IN EXILE IN LONDON AND DUBAI TO AVOID CORRUPTION CHARGES IN HER HOME COUNTRY. AND NOW SHE'S IN THE UNITED STATES, WHERE SOME SEE HER AS THE KEY TO HEADING OFF WHAT WOULD BE A FOREIGN POLICY DISASTER. I FIND THAT THE PRESENT REGIME HAS BEEN UNABLE TO SUCCESSFULLY TACKLE MILITANCY IN THE TRIBAL AREAS. AND THAT'S WHY I FEEL THAT THERE'S A DANGEROUS SITUATION EMERGING IN OUR REGION. AND WE NEED TO ADDRESS THE SOCIAL NEEDS OF THE PEOPLE SO THAT THEY COME FORWARD AND HELP THE STATE IN INVESTIGATING AND IDENTIFYING THE HIDEOUTS OF THE TALIBAN AND AL-QAEDA. TRUE OR UNTRUE THAT NOT IN EVERY TRIBAL AREA BUT IN THOSE TRIBAL AREAS CLOSEST TO AFGHANISTAN, THAT WHAT EXISTS IS ALREADY A KIND OF TALIBAN-ISTAN? WELL-- YES, THAT'S-- SOMETHING THAT WORRIES ME DEEPLY AS A LEADER OF PAKISTAN. BECAUSE DURING MY TENURE, THE TRIBAL AREAS WERE VERY MUCH PART OF PAKISTANI TERRITORY WHERE PAKISTAN EXERTED ITS AUTHORITY. BUT A SERIES OF CEASEFIRES AND PEACE TREATIES WITH PRO-TALIBAN FORCES HAVE CEDED TERRITORY THAT IS ACTUALLY PAKISTAN'S TO AUTONOMOUS ADMINISTRATION BY ELEMENTS WHO ARE SYMPATHETIC TO TERRORISTS, IF NOT TERRORISTS THEMSELVES SO, I DO FEEL VERY FRUSTRATED AT THE INABILITY OF OUR SECURITY FORCES TO BE ABLE TO CONSISTENTLY AND PERSISTENTLY FOLLOW THE TALIBAN AND AL-QAEDA ELEMENTS UNTIL THEY ARE CAUGHT OR ELIMINATED. AND I THINK THAT THERE HAS BEEN AN ABYSMAL FAILURE ON THE PART OF THE PRESENT REGIME IN BOTH SECURITY TERMS AND IN TERMS OF THE ADMINISTRATION OF OUR TRIBAL AREAS. PAKISTAN UNDER ITS CURRENT PRESIDENT GENERAL PERVEZ MUSHARRAF IS SLIDING INTO CHAOS. EXTREMIST GROUPS HAVE MULTIPLIED ACROSS THE COUNTRY, EXPANDING THEIR INFLUENCE BEYOND THE TRIBAL REGIONS THAT BORDER AFGHANISTAN AND INFILTRATING AS FAR AS THE CAPITAL, ISLAMABAD. WE RECENTLY SAW THE CITY'S RED MOSQUE - A FUNDAMENTALIST STRONGHOLD - ABLAZE WITH GUNFIRE, PITTING PAKISTAN SECURITY FORCES AGAINST ARMED ISLAMIC EXTREMISTS. AND IN PAKISTAN'S MAJOR PORT CITY OF KARACHI, POLITICAL PROTESTS IN MAY LED TO DOZENS OF DEATHS AS THOUSANDS OF CITIZENS MARCHED AGAINST MUSHARRAF'S SUSPENSION OF THE SUPREME COURT'S CHIEF JUSTICE. THE GENERAL HAS TRIED TO SUPPRESS CRITICISM WITH LIMITS ON MEDIA FREEDOM, AND EARLIER THIS MONTH REPORTEDLY CONSIDERED IMPOSING EMERGENCY POWERS - A MOVE THAT WOULD LIKELY HAVE EMBARRASSED HIS SUPPORTERS IN WASHINGTON. REPORTS SAY THAT THE US GOVERNMENT HAS STRONGLY ENCOURAGED HIM TO CONSIDER ALTERNATIVE COURSES OF ACTION. BENAZIR BHUTTO HAS BEEN A POWERFUL FORCE IN PAKISTANI POLITICS FOR 20 YEARS. HER FATHER ZULFIQAR BHUTTO WAS THE COUNTRY'S PRIME MINISTER FROM 1973 TO 1977, BUT WAS HANGED IN 1979 BY THE MILITARY DICTATOR GENERAL ZIA UL-HAQ. AFTER ZIA HIMSELF DIED IN A 1988 PLANE CRASH, BENAZIR BHUTTO WAS ELECTED PRIME MINISTER, THE FIRST FEMALE LEADER OF A MUSLIM COUNTRY. HER INITIAL TERM IN OFFICE LASTED JUST 20 MONTHS AND ENDED AMID ACCUSATIONS OF HIGH- LEVEL GOVERNMENT CORRUPTION, BUT SHE WAS REELECTED IN 1993 AND SERVED UNTIL 1996 WHEN A PREVIOUS PRESIDENT HAD HER KICKED OUT OF OFFICE. SO AS MUSHARRAF EXPLORES POSSIBLE SOLUTIONS TO HIS PLUMMETING POPULARITY, REPORTS SURFACED THAT HE MET WITH MADAM BHUTTO IN LATE JULY. AND IN THE COMPLEX HORSE-TRADING, THAT IS PAKISTANI POLITICS, THIS MEETING - OFFICIALLY AT LEAST - REMAINS A SECRET TO THIS DAY. YOU MET RECENTLY WITH PRESIDENT MUSHARRAF. YOU MET WITH HIM. DID YOU NOT? WELL, THIS IS THE MOST FAMOUS NON-MEETING. SO, YOU WILL FORGIVE ME IF I CONTINUE TO KEEP IT AS THE MOST FAMOUS NON- MEETING. BUT I CAN SAY THIS MUCH, THAT CERTAINLY MY PARTY AND I HAVE BEEN TRYING TO FIND A FACILITATED TRANSFER TO DEMOCRACY. WHY THE SECRECY ABOUT THAT, THAT EVERYBODY'S-- TALKS ABOUT IT. EVERYBODY WHO KNOWS ANYTHING ON THE SUBJECT SEEMS TO FEEL, "WELL, IT HAPPENED." BUT-- BUT WHY KEEP IT IN A OPAQUE STANDING OF SAYING "FAMOUS NON-MEETING?" WELL, I THINK THE PARTICIPANTS IN NON-MEETINGS-- WERE UNAWARE THAT IT WOULD BE DISCLOSED AND THERE WERE CERTAIN GROUND RULES. AND THEREFORE GIVEN THOSE GROUND RULES, I FIND IT-- WRONG FOR ME TO BREAK THE GROUND RULES OF THE NON-MEETING. WELL, I CAN'T SAY I UNDERSTAND. BUT I RESPECT YOUR ANSWER. SO, WE'LL MOVE ON. I'M SO SORRY TO BE SO EASTERN AND SO OPAQUE. (LAUGHTER) BUT THIS IS THE SITUATION I FIND MYSELF IN. SO, DO FORGIVE ME. WHAT WOULD IT TAKE FOR YOU TO SHARE POWER WITH PRESIDENT MUSHARRAF IN THE FUTURE? WHAT ARE THE PREREQUISITES FROM YOUR END? INSOFAR AS GENERAL MUSHARRAF CAN HELP US MOVE TOWARDS A CIVILIAN DEMOCRATIC ORDER-- WE WOULD EXPLORE A WORKING RELATIONSHIP WITH HIM. HOWEVER, THERE WERE CERTAIN COMMITMENTS MADE-- DURING THESE CONTACTS THAT TOOK PLACE OVER VERY LONG PERIOD OF TIME. AND THERE WAS A CALIBRATION OF CERTAIN EVENTS THAT WERE TO TAKE PLACE AS CONFIDENCE-BUILDING MEASURES. AND WE ARE LOOKING FOR THOSE CONFIDENCE-BUILDING MEASURES. IT COULD BE THE LIFTING OF THE BAN ON A PERSON WHO'S BEEN ELECTED TWICE AS PRIME MINISTER, SEEKING A THIRD TERM. IT COULD BE AN INDEMNITY FOR HOLDERS OF PUBLIC OFFICE PRIOR-- TO 2001. BUT A CERTAIN CONFIDENCE-BUILDING MEASURE IS THERE SOME DIFFICULTY FOR YOU? DOES IT WORRY YOU THAT BY HAVING CONTACT WITH PRESIDENT MUSHARRAF, EVEN THAT FIRST FAINT GLIMMER, THAT MEMBERS OF YOUR OWN PARTY WOULD SAY, "LISTEN. HE'S A DICTATOR. HE'S BEEN TERRIBLE. AND YOU SHOULDN'T EVEN BE OFFERING TO DO BUSINESS WITH HIM ON ANY BASIS." DO YOU WORRY ABOUT THAT? WELL, I KNOW THAT SOME PEOPLE HAVE BEEN SAYING THAT. BUT IN FACT IN MY PARTY, THERE'S BEEN A BROAD CONSENSUS SINCE 1999 THAT WE NEED TO HAVE NEGOTIATIONS TO SEE WHETHER WE CAN HAVE A FACILITATED TRANSFER TO DEMOCRACY. BUT OF COURSE IN THE PAST, THE NEGOTIATIONS WERE BASED ON-- AN-- A SCENARIO WHERE I WOULD NOT BE A CONTESTANT. NOW, I AM PLANNING TO BE THE CONTESTANT. AND THE TALKS NOW ARE AIMED TO GETTING THE BAN ON MYSELF LIFTED. BECAUSE THIS IS FOR THE RESTORATION OF DEMOCRACY. THIS IS NOT FOR SOME KIND OF A PERSONAL DEALING BETWEEN GENERAL MUSHARRAF AND ME. THIS IS FOR WHERE PAKISTAN'S GOING, THE FUTURE DIRECTION OF PAKISTAN, THE MODERATE FORCES GETTING TOGETHER, THE HOLDING OF THEIR ELECTIONS, AND THE PROVISION OF A LEVEL PLAYING FIELD FOR ALL-- POLITICAL PARTIES. WHAT'S IN IT FOR PRESIDENT MUSHARRAF? HE MIGHT TURN OUT TO BE, UNDER YOUR SCENARIO, THE ULTIMATE LOSER. SO, WHAT'S IN IT FOR HIM? WHY SHOULD HE DO THIS? WELL, OBVIOUSLY IF-- HE HOLDS FAIR, FREE AND IMPARTIAL ELECTIONS, HE COULD MAKE A STAKE TO CONTINUE AS PART OF THE SYSTEM. HE COULD MAKE A CLAIM. RIGHT NOW, HE'S SEEKING TO MAKE A CLAIM BEHIND THE BACKS OF THE POLITICAL PARTIES. SO, THERE'S A BIG DISPUTE ABOUT THIS. AND I THINK HE'S ENTERING INTO CERTAIN CONTROVERSIES THAT COULD PUT HIM INTO CONFRONTATION WITH THE PEOPLE OF THE COUNTRY AND THE COURTS OF THE COUNTRY. SO, FOR GENERAL MUSHARRAF TO CONTINUE TO BE PART-- OF THE SETUP, I THINK IT'S IMPORTANT FOR HIM TO ALSO FACILITATE A-- A TRANSFER TO DEMOCRACY AND EMERGE AS A CIVILIAN LEADER WHO IS ESPOUSING THE CAUSE OF MODERATION AND DEMOCRACY. ARE YOU AND YOUR PARTY OPEN TO HAVING A SHARING OF POWER, IF YOU WILL, AND LEAVE GENERAL MUSHARRAF IN CHARGE OF THE MILITARY? WE ARE-- IN CHAR-- THE PRESIDENT OF OUR COUNTRY UNDER THE CONSTITUTION IS IN CHARGE OF THE MILITARY. HE'S THE COMMANDER- IN-CHIEF-- AND HE'S IN CHARGE OF THE MILITARY. SOME PEOPLE MAY LIKE THE CONSTITUTION. WE MAY NOT LIKE IT. BUT THAT'S THE SITUATION. SO, EVEN IF GENERAL MUSHARRAF LEAVES THE CHIEF OF ARMY POST AND IS LEGALLY ELECTED PRESIDENT OF PAKISTAN, HE WOULD STILL CONTINUE TO BE IN CHARGE OF THE MILITARY, OR ANY PRESIDENT OF PAKISTAN, EVEN IF IT'S A CIVILIAN. BUT THE DEBATE IN PAKISTAN IS THAT ALL POWERS ARE PRESENTLY WITH THE PRESIDENT, AND THEREFORE INDIRECTLY WITH THE MILITARY. AND THAT THE MILITARIZATION OF PAKISTAN HAS LED TO A PUBLIC BACKLASH WHERE THE PEOPLE OF THE COUNTRY FEEL THAT THE MILITARY IS NOT JUST DEFENDING THE FRONTIERS OF OUR COUNTRY, BUT THAT IT'S BECOMING A CORPORATE INTEREST, THAT IT'S BECOMING A POLITICAL PARTY. AND THEREFORE, FOR THE INTERNAL COHESION OF PAKISTAN, IT'S VERY IMPORTANT FOR US TO DEMARCATE THE ROLE OF OUR ARMED FORCES IN OUR SOCIETY. YOU ARE OPEN TO SOME ARRANGEMENT BY WHICH PRESIDENT MUSHARRAF COULD REMAIN IF NOT IN CHARGE OF THE MILITARY, MAYBE DE FACTO IN CHARGE OF IT? THE PRESIDENT OF PAKISTAN WOULD BE DE FACTO IN CHARGE OF THE MILITARY. AND IF GENERAL MUSHARRAF SHEDS HIS UNIFORM AND EMERGES AS A CIVILIAN LEADER WHO HAS THE SUPPORT OF OTHER POLITICAL PARTIES, YES. THEN HE WOULD CONTINUE AS THE DE FACTO COMMANDER-IN-CHIEF, AND HANDLER OF THE MILITARY. BUT THIS WILL DEPEND ON HIM REACHING A PACKAGE OF REFORMS WITH THE POLITICAL PARTIES. AND THE TIME FOR THAT IS RUNNING OUT. I'M INTERESTED IN WHERE THE UNITED STATES GOVERNMENT IS, WHERE THIS CURRENT ADMINISTRATION IS. IS IT YOUR IMPRESSION, IS THAT THEY'RE TRYING TO MAKE THIS HAPPEN? OR IS IT YOUR KNOWLEDGE THAT THEY'RE TRYING TO MAKE IT HAPPEN? I'M SURE THAT WASHINGTON AND OTHERS WOULD LIKE TO SEE THE RESTORATION OF DEMOCRACY AND UNDERSTAND THAT-- FOR DEMOCRACY TO BE RESTORED, THE PEOPLE WHO WOULD-- THINK THEY WOULD LOSE OR PEOPLE WHOSE POWERS WOULD BE CONSTRAINED, WOULD NATURALLY RESIST IT. AND AT THE END OF THE DAY, WE'VE HAD A TOUGH MILITARY RULER IN PAKISTAN FOR THE LAST-- WELL SINCE '99 NOW, IT'S EIGHT YEARS. BUT IN THESE EIGHT YEARS, HAVE WE GOT THE RESULTS? SADLY, NO. SO, I THINK A CHANGE IN POLICY IS VERY MUCH NEEDED FOR OUR COMMON ENDEAVORS IN ELIMINATING TERRORISM AND IN BUILDING DEMOCRACY. YOU MUST TALK TO U.S. SECRETARY OF STATE RICE FAIRLY OFTEN. WELL, I WOULD LIKE-- TO TALK TO SECRETARY OF STATE RICE. BUT I DON'T THINK THE BUSH ADMINISTRATION WOULD LIKE TO EMBARRASS-- GENERAL MUSHARRAF BY ENGAGING AT SUCH A HIGH-LEVEL CONTACT. OH, WELL I WAS UNDER THE IMPRESSION YOU TALKED TO HER FAIRLY OFTEN. WELL- I'M SAYING THEY HAVEN'T TALKED TO US. AND I UNDERSTAND THAT IT COULD BE TO AVOID EMBARRASSING GENERAL MUSHARRAF. BUT I WOULD CERTAINLY LOVE TO HAVE AN OPPORTUNITY TO TALK TO SECRETARY OF STATE CONDOLEEZZA RICE. AS YOU KNOW, PAKISTAN HAS COME UP IN THE CURRENT U.S. PRESIDENTIAL CAMPAIGN, LOOKING FORWARD TO 2008. AND A DEMOCRATIC CANDIDATE, BARACK OBAMA, HAS, IN RECENT REMARKS, INDICATED THAT HE BELIEVES THE UNITED STATES SHOULD FEEL FREE TO LAUNCH ATTACKS AGAINST TARGETS IN PAKISTAN WITHOUT THE APPROVAL OF PAKISTANI AUTHORITIES. DO YOU AGREE WITH THAT? WELL, I CAN UNDERSTAND THE FRUSTRATION THAT MANY AMERICAN LEADERS FEEL WHEN TALIBAN FORCES ATTACK NATO TROOPS AND THEN CROSS INTO THE BORDER-- TO SAFE HAVENS WITHIN PAKISTANI TERRITORY. BUT I DO FEEL THAT THE INABILITY OF THE PRESENT MILITARY REGIME TO RESTORE LAW AND ORDER SHOULD NOT LEAD TO AN UNAUTHORIZED ATTACK ON PAKISTANI TERRITORY. THE UNITED STATES AND PAKISTAN MUST WORK VERY CLOSELY TOGETHER MILITARILY AND AT THE SECURITY LEVEL IN MEETING THE COMMON THREAT THAT IS EMANATING FROM TERRORISM. WELL, LET'S PUT IT DIRECTLY. WHEN YOU FOLLOW THE MONEY, UNITED STATES BASICALLY FINANCES THE PAKISTAN MILITARY. NOT SAYING COMPLETELY. OTHER COUNTRIES ARE INVOLVED. SO, CORRECT ME IF I'M WRONG. THE UNITED STATES HAS A GREAT DEAL OF INFLUENCE, OR SHOULD HAVE A GREAT DEAL OF INFLUENCE, WITH PRESIDENT MUSHARRAF. YES, I WOULD AGREE WITH THAT. BUT THERE'S A-- IF YOU FOLLOW THE MONEY, THERE'S AN ENORMOUS LEVERAGE THAT WASHINGTON TODAY ENJOYS WITH THE PAKISTAN MILITARY. AND WE FEEL THAT THE PAKISTANI MILITARY SHOULD SEE AN INSTITUTIONAL INTEREST IN PROMOTING DEMOCRACY AND GIVING UP DICTATORSHIP, PARTICULARLY SINCE DICTATORSHIP HAS BACKFIRED BUT TRAGICALLY, THERE ARE SOME FORCES WITHIN-- PAKISTAN THAT FOUGHT THE AFGHAN JIHAD, THAT PUT TOGETHER A COALITION OF POLITICAL PARTIES, BUSINESS INTERESTS AND FORMER MILITARY AND INTELLIGENCE OFFICIALS, WHO HAVE A LOT TO LOSE IF DEMOCRACY IS RESTORED IN PAKISTAN. WELL, WHO ARE THESE PEOPLE? IT WAS A GROUP OF POLITICAL LEADERS, INTELLIGENCE OFFICERS, MILITARY OFFICERS, WHO CAME TOGETHER AND-- THEY PUT TOGETHER THE AFGHAN MUJAHADIN THAT LATER WENT ON TO BECOME TALIBAN AND AL- QAEDA. AND THEY HAVE BACKED DICTATORSHIP IN PAKISTAN. THEY HAVE TRIED TO EXPAND THE SO- CALLED MILITANT-- STRUCTURE, THE MADRASA STRUCTURE. YOU KNOW, MADRASA MEANS "SCHOOL." SO, I DON'T LIKE CALLING MILITANTS SCHOOLS. AND I DON'T LIKE CALLING IRREGULAR ARMIES STUDENTS. BUT THEY'RE USING A DECOY NAME CALLED MADRASA. AND THEY ARE BUILDING MILITANT CELLS ACROSS THE LENGTH AND BREADTH OF PAKISTAN. THEY WANT MORE TIME BECAUSE THEY'RE NOT YET IN A POSITION TO TAKE ON THE ARMED FORCES OF PAKISTAN. SO, THE QUESTION ARISES, IS THAT HOW CAN THESE-- MILITANT CELLS GO ON RECRUITING-- PEOPLE, AND THE INTELLIGENCE NOT KNOW? EVEN IN OUR CAPITAL CITY OF ISLAMABAD, THE MILITANTS MANAGE TO BUILD A HUGE MADRASA COMPLEX TO HOUSE 7,000 PEOPLE. AND THEY SMUGGLED IN WEAPONS. THEY SMUGGLED IN ROCKET LAUNCHERS. AND THEY BROUGHT IN SUICIDE BOMBERS. NOT IN SOME LITTLE FARAWAY CORNER OF THE TRIBAL AREAS, BUT IN OUR CAPITAL CITY OF ISLAMABAD. HOW COULD THAT HAPPEN? WELL, THAT COULD ONLY HAPPEN IF THE STRANGLEHOLD OF THE PEOPLE WHO FOUGHT THE AFGHAN JIHAD OF THE '80S WAS SO STRONG ON THE POLITICAL ADMINISTRATIVE STRUCTURE OF THE COUNTRY THAT THEY COULD ACTUALLY DARE TO FACE THE LION IN HIS LAIR BY COMING RIGHT INTO ISLAMABAD. MANY, MANY AMERICANS SAY, "WAIT A MINUTE. WE'VE BEEN POURING MONEY INTO PAKISTAN, WE-- MILITARY EQUIPMENT. WE'VE GIVEN THE GOVERNMENT THERE A LOT OF SUPPORT THAT COMES RIGHT OUTTA THE POCKET OF AMERICAN TAXPAYERS. THAT IT JUST LOOKS LIKE A BOTTOMLESS PIT, CORRUPT TO THE CORE, AND IF NOT HOPELESS, A PLACE WE OUGHTA JUST GET OUT OF. WELL, YOU KNOW, THE CYNICS SAY THAT-- IF THE AL-QAEDA/TALIBAN THREAT ISN'T THERE, WHAT REASON WOULD THERE BE FOR THE MILITARY REGIME TO BE ABLE TO JUSTIFY ITS EXISTENCE? AND THEY SAY IF THE TALIBAN AL-QAEDA THREAT WASN'T THERE, HOW WOULD ALL THESE EXTERNAL FLOWS OF MONEY COME IN? AND I THINK IT'S TIME TO PAUSE AND REFLECT THAT WHENEVER THERE'S A DEMOCRACY, MONEY DRIES UP. WHEREVER THERE'S A DEMOCRACY, THERE ARE HARSH TAXATION MEASURES THAT HAVE TO BE ADOPTED. BUT EVERY TIME THERE'S A THREAT LIKE TALIBAN OR AL- QAEDA, THEN HUGE AMOUNTS OF MONEY POUR IN. SO, WE'VE GOT TO CHANGE THE WHEEL, IN MY VIEW. WE'VE GOT TO SHOW THAT DEMOCRACY PAYS, NOT DICTATORSHIP. WE'VE GOT TO SHOW THAT STABILITY PAYS AND NOT CRISIS. THE AMERICAN PEOPLE HAVE BEEN VERY GENEROUS WITH THEIR MONEY, $10 BILLION TO PAKISTAN. AND TRAGICALLY, THE HUGE AMOUNTS THE AMERICAN TAXPAYER HAS GIVEN IN RECENT YEARS HAS SIMPLY DISAPPEARED INTO A BOTTOMLESS PIT. WHEN YOU SAY DISAPPEARED, YOU MEAN JUST DISAPPEARED? IT DIDN'T GO FOR MILITARY EQUIPMENT, DIDN'T GO TO PAY SOLDIERS, DIDN'T-- GO TO PAY INTELLIGENCE, IT JUST EVAPORATED? WELL THERE WAS OVERT ASSISTANCE THAT WAS GIVEN FORMALLY TO THE GOVERNMENT OF PAKISTAN. SO IN PAKISTAN, RUMORS ABOUND THAT ABOUT $5 BILLION CAME IN OFFICIALLY, AND ANOTHER $5 BILLION CAME IN UNOFFICIALLY. HOW CORRECT THAT IS, I'M UNABLE TO TELL. BUT WITH ALL THE MONEY THAT CAME IN, I HAVEN'T SEEN UNEMPLOYMENT GO DOWN. AND I WOULD SAY TODAY THE BIGGEST CHALLENGE IN PAKISTAN IS THE JOBLESSNESS. PEOPLE ARE SO POOR THAT THEY'RE BEING EXPLOITED BY THESE PRIVATE ARMIES. THEY'RE BEING EXPLOITED BY THESE PRIVATE MILITIAS. AND THEY'RE BEING FORCED TO JOIN THEM TO GET A JOB. SOME OF THEM MAY BE IDEOLOGICALLY MOTIVATED. BUT A LOT OF THEM ARE IRREGULAR SOLDIERS IN AN IRREGULAR ARMY. AND THAT ALSO IS A CAUSE OF CONCERN. HOW CAN THE STATE OF PAKISTAN PERMIT INFORMAL ARMIES TO BE ESTABLISHED? AND IT'S NOT EASY TO ESTABLISH AN INFORMAL, IRREGULAR ARMY. YOU NEED TO PAY THE SOLDIERS. YOU NEED TO HOUSE THEM. YOU NEED TO FEED THEM. YOU NEED TO LOOK AFTER THEIR FAMILIES SO THAT THEY CAN CONTINUE TO COME TO WORK. IT'S A HUGE INDUSTRY IN PAKISTAN. AND WHO'S FUNNELING IT? NO ONE HAS GONE AFTER THE MONEY. WHERE IS THE MONEY COMING? IT'S NOT AN EASY OPERATION TO HAVE SO MUCH MONEY POURING IN. SO, IT'S INEFFECTIVE GOVERNANCE. GOVERNMENT IN PAKISTAN HAS COLLAPSED. EITHER GENERAL MUSHARRAF'S REGIME IS INEFFECTIVE OR IT IS UNWILLING. BUT THE GOVERNANCE HAS COLLAPSED. AND UNLESS WE CAN RESTORE GOVERNANCE IN PAKISTAN, AND AUTHORITY IN PAKISTAN, SUCH IRREGULAR FORCES WILL CONTINUE TO GROW. WHAT ABOUT THE ARGUMENT THAT GOES THAT IN SOME WAYS, GENERAL MUSHARRAF, PARTICULARLY RECENTLY, HASN'T BEEN TOUGH ENOUGH? FOR EXAMPLE, HE APPARENTLY GAVE SOME THOUGHT TO INVOKING EMERGENCY RULE. WHAT WOULD'VE HAPPENED? I BELIEVE THAT EMERGENCY RULE WOULD HAVE BEEN STRUCK DOWN BY THE COURTS, WHO ARE NOW MORE INDEPENDENT OF MILITARY PRESSURE. AND IT WOULD HAVE BROUGHT-- THE MILITARY REGIME IN CONFRONTATION WITH THE PEOPLE. I WOULD LIKE TO SAY THAT ONE OF THE ISSUES THAT HAS WORRIED ME IS THE NUMBER OF PEOPLE THAT I SEE ASSOCIATED WITH THE AFGHAN JIHAD OF THE '80S WHO ARE AROUND GENERAL MUSHARRAF. AND WHERE I FEEL THE FAILURE HAS COME HAS BEEN LESS TO DO WITH-- PAKISTANI POLICE OR PAKISTANI ADMINISTRATION AND MORE TO DO BY THE POLITICAL INTERFERENCE BY GOVERNMENT FUNCTIONARIES INTO LAW ENFORCEMENT. FOR EXAMPLE, WHEN-- A CLERIC WAS ARRESTED SMUGGLING WEAPONS INTO ISLAMABAD, HE WAS ARRESTED BY A POLICEMAN. BUT INSTEAD OF THE POLICEMAN BEING RESPECTED, THE POLICEMAN WAS SIDELINED. AND A CABINET MINISTER RELEASED THE MILITANT WHO WAS SMUGGLING WEAPONS. IS THIS FACT? IT'S A FACT. IT'S REPORTED IN THE PAKISTANI PRESS. IT HAPPENED THREE YEARS AGO. AND THE MAN WHO WAS SMUGGLING THE MILITANTS WAS THE CHIEF MILITANT OF THE RED MOSQUE, WHICH-- STARTED A- MUTINY EARLIER THIS YEAR IN JULY, AND SO THAT'S WHY THE PEOPLE OF PAKISTAN ARE FRUSTRATED THEY FEEL THE PRESENT REGIME IS RUNNING WITH THE HARE AND HUNTING WITH THE HOUND. THAT THEY'RE BRINGING IN THE MILITANTS, THEY'RE ALLOWING THEM TO BUILD A BASE AND THAT THEY'RE TRYING TO SPOOK THE WEST INTO KIND OF SAYING THAT LOOK HOW MUCH MILITANCY IS THERE, TRY AND SUPPORT US. WE'VE HAD THE SPEAKER OF THE PUNJAB ASSEMBLY FOR EXAMPLE DEFEND SUICIDE BOMBINGS, WE'VE HAD CABINET MINISTERS DEFEND SUICIDE BOMBINGS, SO THE MESSAGE THAT IS GOING OUT FROM PAKISTAN IS AMBIGUOUS, IT IS CONFUSED AND PEOPLE ARE NOT SURE WHETHER THE REGIME REALLY WANTS TO TACKLE MILITANCY OR ONLY WANTS TO DO IT NOT BECAUSE IT'S IN PAKISTAN'S INTEREST TO DO IT, BUT BECAUSE ITS UNDER US PRESSURE TO DO SO. AS THE EXECUTIVE BRANCH OF THE GOVERNMENT OF THE UNITED STATES, THE BUSH ADMINISTRATION HAS BEEN SUPPORTING PRESIDENT MUSHARRAF RIGHT ON THROUGH. WITH WHAT YOU'VE JUST DESCRIBED, AFTER SEVEN YEARS, DO YOU THINK THAT THE POLICY'S BEEN A FAILURE? WELL, GENERAL MUSHARRAF AND HIS TEAM HAVE BEEN ABLE TO DELIVER ON THE GROUND. INITIALLY, AFTER 9/11, I THINK THE BUSH ADMINISTRATION MADE THE RIGHT DECISION. GENERAL MUSHARRAF SAID HE WAS GOING TO BREAK TIES-- WITH THE TALIBAN. GENERAL MUSHARRAF WAS READY TO GIVE AIRBASES AND OVER-- FLIGHT - FACILITIES TO THE UNITED STATES. HE JOINED THE WAR AGAINST TERRORISM. THAT WAS THE RIGHT DECISION TO GO WITH THEM AT THAT TIME. BUT AFTER 2002, WHEN THE MAJOR LEADERS OF THE POLITICAL PARTIES WERE KEPT OUT, AND THE INTELLIGENCE APPARATUS GATHERED TOGETHER A GOVERNMENT MADE UP OF MANY OF THE PEOPLE WHO HAD BEEN WITH THE AFGHAN MUJAHIDEEN IN THE '80S, THAT'S WHEN THE DECLINE STARTED. AND SINCE THEN, KEY AL QAEDA PEOPLE HAVE BEEN ARRESTED FROM THE HOMES OF JAMAAT-E-ISLAMI, WHO IS A COALITION PARTNER IN THE GOVERNMENT. SO THE ELEMENTS THAT SUPPORT THE MILITANTS ARE INVOLVED IN THE GOVERNMENT. NOT ALL OF THEM. THERE ARE CERTAINLY MODERATES LIKE THE FOREIGN MINISTER OF OUR COUNTRY AND LIKE SOME OF THE OTHER LEADERS. BUT THE HARDLINERS ARE ALSO THERE. SO THERE'S A DIFFERENCE BETWEEN THE TALK THAT IS BEING TALKED AND THE WALK THAT IS BEING WALKED. YOU SAID YOU THOUGHT IT WAS CORRECT, IN YOUR JUDGMENT, FOR THE UNITED STATES GOVERNMENT AND THE BUSH ADMINISTRATION TO SUPPORT PRESIDENT MUSHARRAF-- PARTICULARLY AFTER 9/11. BUT I WANT TO MAKE SURE I UNDERSTAND WHAT YOU SAY. YOU THINK SINCE 2002, IT'S BEEN A FAILURE? OR IT'S BEEN LESS CLEAR WHERE DO YOU COME OUT THERE? THERE'S BEEN A STEADY DECLINE IN-- THE ABILITY OF THE PAKISTANI REGIME TO STEM THE TIDE OF RISING EXTREMISM AND MILITANCY. THE POLICY OF-- CEASEFIRES, PEACE TREATIES, MOMENTARY ARRESTS OF TERRORISTS, THEN RELEASE OF THOSE VERY SAME ELEMENTS HAS CREATED AN AMBIGUITY THAT IS DANGEROUS, THAT HAS FRUSTRATED THE PEOPLE OF PAKISTAN BUT LET ME GIVE YOU AN OPPORTUNITY TO ANSWER SOMETHING THAT SOME SUPPORTERS OF-- PRESIDENT MUSHARRAF HAVE SAID. LISTEN IT WAS DURING THE '90S, DURING THE CLINTON ADMINISTRATION IN THIS COUNTRY AND FOR A GOOD DEAL OF TIME IN YOUR ADMINISTRATION IN PAKISTAN. THIS IS WHEN AL QAEDA BUILT UP AND THAT 9/11 WAS A RESULT OF THAT. AND EVER SINCE THEN, WE'VE BEEN PAYING THE PRICE. I WOULD SAY THAT'S TOTALLY MISPLACED. IN FACT, IT WAS UNDER MY GOVERNMENT THAT NO ATTACK, MAJOR ATTACK OF INTERNATIONAL TERRORISM TOOK PLACE. DURING MY TENURES, NEITHER OF THE ATTACKS ON THE-- TWIN TOWERS TOOK PLACE. DURING MY TENURE, THE AMERICAN EMBASSIES IN AFRICA WERE NOT ATTACKED. AND I'M NOT SAYING THAT-- MY GOVERNMENT WAS BEHIND THESE ATTACKS. BUT I AM SAYING THAT I DID NOT ALLOW THE SOIL OF PAKISTAN TO BE USED BY TERRORIST ELEMENTS. I HAD THEM ON THE RUN. AND I CAN HAVE THEM ON THE RUN AGAIN. I HAVE NO DOUBT OF IT. I SUSPECT THAT SOMEONE'S GONNA ASK ME WHEN THIS INTERVIEW IS OVER A VERSION OF, WELL DAN YOU TALKED TO THE LADY? IS SHE TOUGH ENOUGH? ARE YOU? WELL-- I THINK THAT I AM TOUGH ON THE CAUSES OF CRIME. BUT I DON'T SEE MYSELF AS BEING A HEARTLESS PERSON. I SEE MYSELF AS SOMEBODY WHO CAN TAKE ACTION WHEN ACTION IS NECESSARY. BUT WHO DOESN'T RELY ON FORCE ALONE. WHO PUTS BACK TOGETHER A PACKAGE THAT CAN INVOLVE OTHER PEOPLE. I DON'T SEE MYSELF AS A MESSIAH WHO SINGLE-HANDEDLY CAN GO AND DEFEAT ALL THE DEMONS. I SEE MYSELF AS A LEADER WHO CAN PUT TOGETHER A TEAM, WHO CAN PUT TOGETHER THE PEOPLE. AND BY INVOLVING THE PEOPLE AND MAKING THEM STAKEHOLDERS, CAN CARRY THEM FORWARD IN A PARTICULAR DIRECTION THAT CAN LEAD TO PEACE. YOU DO NOT CURRENTLY LIVE IN PAKISTAN. IS IT BECAUSE OF SECURITY OR SAFETY? UNFORTUNATELY, I DON'T CURRENTLY LIVE IN PAKISTAN. BECAUSE THE PRESENT RULERS-- HAVE THREATENED TO ARREST ME IF I RETURN. AND IF I AM ARRESTED, I FEEL I WON'T BE ABLE TO SPEAK UP. I WON'T BE ABLE TO MOBILIZE PUBLIC OPINION. THE MILITARY HARD-LINERS WHO FOUGHT THE AFGHAN JIHAD SEE IN MY PARTY AND IN MY LEADERSHIP A THREAT-- TO A PAKISTAN WHERE THEY CAN-- WHICH THEY CAN EXPLOIT IS IT YOUR CONTENTION THAT PRESIDENT MUSHARRAF WOULD NEED TO DISMISS ALL THE CHARGES AGAINST YOU THAT NOW STAND IN PAKISTAN, IN ORDER FOR YOU TO RETURN TO THE COUNTRY AND HAVE ANY ROLE? WELL, THESE CHARGES ARE POLITICALLY MOTIVATED. AND I HAVE NOT BEEN CONVICTED FOR ANY OF THEM. AND I FEEL THAT IF GENERAL MUSHARRAF CAN PARDON AQ KHAN, THE MAN WHO CONFESSED TO SELLING NUCLEAR SECRETS WORLDWIDE, I FIND IT VERY STRANGE THAT HIS REGIME WOULD WANT TO PURSUE A LEADER WHO HAS FACED THE CHARGES FOR TEN YEARS-- PROCLAIMED HER INNOCENCE, AND NOTHING HAS BEEN PROVEN AGAINST HER. IS IT A REAL PROSPECT OF PRESIDENT MUSHARRAF DISMISSING THE CHARGES, GRANTING YOU, IF YOU WILL, A GUARANTEE AS MUCH AS ANYONE CAN GIVE IT, OF YOUR PERSONAL SAFETY AND HAVE YOU COME BACK TO PAKISTAN? WELL-- CERTAINLY DISCUSSIONS TOWARDS THIS END HAVE BEEN HELD BETWEEN GENERAL MUSHARRAF'S SIDE AND THE PAKISTAN PEOPLE'S PARTY. AND I THINK THAT AS WE ARE APPROACHING THE AUTUMN, GENERAL MUSHARRAF AND HIS COLLEAGUES ARE GOING TO HAVE TO MAKE UP THEIR MINDS WHETHER THEY WISH TO HAVE A FACILITATED TRANSFER TO DEMOCRACY OR WHETHER THEY WANT TO CONTINUE TO EXCLUDE MAJOR POLITICAL PARTIES LIKE MINE FROM-- THE POLITICAL PROCESS IN AN EVEN-HANDED FASHION. WHAT DO YOU THINK THE ODDS ARE THAT SIX MONTHS OR A YEAR FROM NOW, THAT THERE WILL BE POWER SHARING IN PAKISTAN? THAT YOU AND PERHAPS OTHERS WILL HAVE A LOT OF THE POWER, BUT THAT GENERAL MUSHARRAF WILL STILL BE IN UNIFORM AND STILL BE RUNNING THE MILITARY? THERE'S NO ODDS OF GENERAL MUSHARRAF BEING IN UNIFORM AND HAVING A POWER SHARING AGREEMENT WITH THE OPPOSITION. THE PEOPLE OF THE COUNTRY DO NOT WANT A UNIFORMED PRESIDENT WHICH-- SO THIS IS WHERE YOU SAY IF HE BECOMES A CIVILIAN-- YES. -- YOU COULD BUY IT. IF HE BECOMES A CIVILIAN AND PRESENTS HIMSELF AS A CIVILIAN, WAS HELD A FAIR ELECTION, WAS PREPARED TO HAVE A BALANCE OF POWER BETWEEN THE PRESIDENCY AND THE PRIME MINISTER, WAS PREPARED TO LOOK AFTER EXTERNAL-- MILITANCY, LEAVING THE PRIME MINISTER FREE TO LOOK AFTER INTERNAL MILI-- MILITANCY, THAT'S A DIFFERENT STORY. BUT I DON'T THINK WE HAVE TO WAIT A YEAR AND A HALF. I THINK WE'LL KNOW BY THE END OF THIS MONTH OR THE NEXT TWO OR THREE WEEKS THE DIRECTION IN WHICH WE ARE HEADING. YOU KNOW, MANY AMERICANS WHO CARE ABOUT WHAT'S HAPPENING IN PAKISTAN DON'T KEEP UP DAY TO DAY. SO YOU SAY BY THE END OF THE MONTH WE SHOULD KNOW? I SAY BY THE END OF THE MONTH, BECAUSE THEN THE ELECTION SEASON STARTS. GENERAL MUSHARRAF HAS SAID THAT THE PRESIDENTIAL ELECTIONS WILL BE ON SEPTEMBER 15TH. SO IF THE PRESIDENTIAL ELECTIONS IN PAKISTAN ON SEPTEMBER 15, THE GENERAL ELECTIONS WILL COME BY OCTOBER-- 15TH TO NOVEMBER 15TH AND WE'LL HAVE A NEW GOVERNMENT IN PLACE BY DECEMBER OF THIS YEAR. SO THE CUT OFF DATE FOR MY PARTY AND FOR MEMBERS OF THE OPPOSITION IS REALLY THE END OF AUGUST. AT THIS MOMENT IN TIME, IN HISTORY, WHAT IN YOUR OPINION IS THE MOST IMPORTANT THING THAT AMERICANS NEED TO KNOW ABOUT PAKISTAN? THE MOST IMPORTANT THING I WOULD SAY IS TO KNOW THAT THE PEOPLE OF PAKISTAN, THE ORDINARY PEOPLE ARE GOOD AND HARD-WORKING AND SHARE MANY VALUES WITH THE AMERICAN PEOPLE. THEY RESPECT FREEDOM, THEY WANT DIGNITY, AND THEY WANT EQUAL OPPORTUNITY. BUT THAT A HANDFUL OF BIGOTS AND ZEALOTS WHO HAVE ARMS AT THEIR DISPOSAL ARE TRYING TO SEIZE THE DESTINY OF THE PEOPLE OF PAKISTAN FROM THEIR HANDS. I THANK YOU. THANK YOU FOR-- THANK YOU VERY MUCH.

GOOD EDUCATION FOR ME YOU MAY WANT TO NOTE THAT BENAZIR BHUTTO IS NO STRANGER TO THE UNITED STATES, SHE GRADUATED WITH HONORS FROM HARVARD IN 1973 I'LL BE BACK WITH A RARE AND CANDID INTERVIEW WITH NEW YORK MAYOR MICHAEL BLOOMBERG, THAT'S NEXT SO STAY HERE WITH US.

IT'S NOT UNUSUAL FOR THE MAYOR OF THE LARGEST CITY IN THE UNITED STATES TO CONSTANTLY BE IN THE PUBLIC EYE. MICHAEL BLOOMBERG IS TYPICAL OF MANY FORMER NEW YORK MAYORS IT'S A VERY PUBLIC JOB HE HAS ONE WITH APPEARANCES, SPEECHES AND NEWS CONFERENCES NEARLY EVERY DAY. HE CALLS HIMSELF A WORKAHOLIC AND RARELY HAS THE TIME OR THE DESIRE TO SIT DOWN WITH A REPORTER TO DISCUSS NATIONAL ISSUES BUT LAST WEEK, MAYOR MIKE, AS HE'S AFFECTIONATELY REFERRED TO BY NEW YORKERS, DID SIT DOWN WITH US TO DISCUSS WHAT HE BELIEVES ARE THE CITY AND THE COUNTRIES MOST PRESSING PROBLEMS. MAYOR BLOOMBERG ALSO ADDRESSED A MUCH TALK-ABOUT TOPIC IN HIGH POLITICAL CIRCLES THAT IS WILL HE OR WILL HE NOT RUN FOR PRESIDENT OF THE UNITED STATES.

FOR MAYOR BLOOMBERG IT IS A TYPICALLY BUSY DAY COMPOUNDED BY THE AFTERMATH OF A FREAK STORM THAT HAD DRENCHED THE CITY AND STALLED THOUSANDS OF RIDERS ON NEW YORK CITY'S TRANSIT SYSTEM. UT THIS MORNING WAS NO DIFFERENT THAN ANY OTHER FOR THE FOR THE MAYOR, WITH A FULL SCHEDULE:

FIRST STOP, TO MEET UP WITH GOVERNOR SPITZER AT A NEW YORK HOSPITAL AS THE GOVERNOR STRESSED THERE IS STILL MUCH MORE THAT WE HAVE TO DO AND WE'RE CERTAINLY DOING OUR PART THEN IT WAS BACK TO CITY HALL FOR MORE MEETINGS, MORE PHONE CALLS, AND OF COURSE OUR INTERVIEW

BUT JUST HOW DOES HE MANAGE IT ALL? AT THIS SO-CALLED BULLPEN AREA IT REALLY RESEMBLES A TRADING FLOOR WELL THAT'S MY BACKGROUND SO THAT'S WHERE I GOT THE IDEA. IT'S FASCINATING BECAUSE WHEN YOU HAVE EVERYBODY OPEN NOBODY LEAKS ANY INFORMATION TO THE PRESS SORRY ABOUT THAT, EVERYBODY WORKS TOGETHER WE NEVER HAVE FIGHTS AND IT REALLY IS COUNTERINTUITIVE WHEN YOU MAKE EVERYONE FEEL PART OF SOMETHING THEN THEY WORK TOGETHER AND MY JOB AS THE MANAGER. IS TO GET PEOPLE TO WORK TOGETHER AND YOU CAN HAVE TITLES WHICH I THINK ARE BOUNDARIES BETWEEN PEOPLE. YOU CAN HAVE WALLS, OFFICES THAT COMES BETWEEN PEOPLE. YOU CAN GIVE DIFFERENT PRIVILEGES, YOU CAN HAVE THE FANCY DINNING ROOM AND I CAN HAVE MY LUNCH AT MY DESK. THAT'S NOT THE WAYS TO GET PEOPLE TO WORK TOGETHER. I DO IT FOR EVERYBODY AND I'VE ALWAYS DONE IT THAT WAY. WELL THERE ARE BOUND TO BE PEOPLE THAT SAY " HEY THAT'S GOOD" BUT FOR A MAYOR IN THIS BUSY ENVIRONMENT HOW DO YOU STAY ORGANIZED? IT'S THE BIGGEST CITY IN THE COUNTRY, THE SCHOOL SYSTEM'S DOING BETTER, CRIME IS DOWN, ECONOMY IS BOOMING, I MEAN I DON'T KNOW WHAT I GOT TO SHOW THAT THIS AND I REALLY BELIEVE THAT ONE OF THE REASONS THAT THE CITY IS DOING SO WELL IS THAT I'VE BEEN ABLE ATTRACT GREAT PEOPLE, AND THE REASON YOU CAN ATTRACT GREAT PEOPLE IS THEY FEEL THEY WILL BE EMPOWERED THEY CAN PARTICIPATE THEY WILL BE A PART OF SOMETHING AND I DID IT IN MY COMPANY WHICH HAS BEEN SUCCESSFUL AND I'VE DONE IT HERE. I THINK EVERYONE SHOULD DO IT. THIS IS THE ONLY WAY GOVERNMENT SHOULD RUN. THIS IS A GOVERNMENT THAT IS WORKING FOR THE PEOPLE. -BLOOMBERG IS A MAN WHO APPRECIATES HIS JOB WORKING FOR THE PEOPLE. WITH AN APPROVAL RATING A NEAR RECORD HIGH 74 PERCENT, AND A NET WORTH OF ABOUT 5 BILLION DOLLARS, HE COULD FINANCE HIS OWN CAMPAIGN RUN FOR THE WHITE HOUSE, JUST LIKE HE DID WHEN HE RAN FOR MAYOR. HE RAISED SPECULATION FURTHER ABOUT HIS POLITICAL AMBITIONS, BY SUDDENLY DROPPING OUT OF THE REPUBLICAN PARTY AND DECLARING HIMSELF AN INDEPENDENT. SO THE BIG QUESTION WILL HIS LOVE OF POLITICS AND WORKING FOR THE PEOPLE LEAD TO A RUN FOR THE PRESIDENCY? YOU SAID TO BE UP ABOVE- WHEN WE WERE IN THE BULL-PEN AREA THAT YOU-- YOU ENJOY BEING MAYOR. IT'S A GREAT JOB. TWO TERMS WOULD BE ENOUGH FOR YOU ABSOLUTELY. I BELIEVE YOU SAID, "I'M GOING INTO PHILANTHROPY." YOU'RE AWARE THAT A LOT OF PEOPLE THINK THAT IF ONE BELIEVES THAT ONE WOULD BELIEVE WATER RUNS UPHILL OR ROCKS GROW WELL, I DON'T KNOW WHAT I'VE GOT TO DO TO PROVE IT. BUT TIME WILL. LET'S GET IT OUT OF THE WAY. ARE YOU RUNNING FOR PRESIDENT? NO. ARE YOU GOING TO RUN FOR PRESIDENT? -NO. ANY CIRCUMSTANCES IN WHICH YOU WOULD? OH, I DON'T KNOW. ANY THE ANSWER-- IF I DON'T SAY NO CATEGORICALLY YOU'LL THEN READ SOMETHING INTO IT. THE ANSWER IS NO. LOOK, I HAVE MY OWN BELIEFS. THEY'RE NOT TAILORED TO WHAT'S POLITICALLY POPULAR. IT'S WHAT MY PARENTS TAUGHT ME AND WHAT I'VE LEARNED RAISING MY TWO DAUGHTERS THAT ARE THE LOVE OF MY LIFE. I BELIEVE THAT CERTAIN THINGS AND IF SOMEBODY ASKS ME WHERE I STAND, I TELL THEM. AND THAT'S NOT A WAY TO GET ELECTED GENERALLY. NOBODY'S GOING TO ELECT ME PRESIDENT OF THE UNITED STATES. WHAT I'D LIKE TO DO IS TO BE ABLE TO INFLUENCE THE DIALOGUE. I'M A CITIZEN. I'M GOING TO LEAVE THIS COUNTRY WHICH I LOVE WHICH HAS GIVEN ME ENORMOUS OPPORTUNITIES FOR MY KIDS. I'M GOING TO TRY TO DO WHAT MAYORS ACROSS THIS COUNTRY ALONG WITH MANY GOVERNORS ARE TRYING TO DO, ADDRESS THE ISSUES THAT CONGRESS SEEMS UNWILLING TO ADDRESS. TO ADDRESS ONE NATION-WIDE ISSUE ABOUT WHICH BLOOMBERG FEELS PARTICULARLY STRONG, HE CO- FOUNDED " MAYOR'S AGAINST ILLEGAL GUNS" A NATIONAL ORGANIZATION INCLUDING 245 MAYORS THAT WORKS TO STEM THE TIDE OF GUN VIOLENCE IN OUR COUNTRY. WHAT IS THE SINGLE MOST IMPORTANT THING IN YOUR JUDGMENT FOR AMERICANS TO KNOW ABOUT GUNS? THERE'S ONLY ONE THING THAT MATTERS. YOU CAN'T LET CRIMINALS HAVE GUNS. THIS YEAR, 2007, 44 PERCENT MORE COPS KILLED WITH GUNS THE FIRST SIX MONTHS OF THIS YEAR THAN WE DID IN 2006. THE TREND IS ALARMING. LET ME GIVE YOU A SCARY NUMBER. IF YOU REMEMBER VIRGINIA TECH, TERRIBLE TRAGEDY, 32 INNOCENT PEOPLE KILLED BY SOMEBODY WHO HAD OBTAINED TWO ILLEGAL GUNS. IT DOMINATED THE NEWS THE DAYS-- NEWSPAPERS HAD FOUR OR FIVE PAGES DEVOTED TO IT EACH DAY, NON-STOP WALL TO WALL ON NEWS RADIO AND TALK RADIO AND TELEVISION. IT WAS THE ONLY STORY. BUT WE ALLOW CRIMINALS TO KILL 32 PEOPLE EVERY SINGLE DAY IN THIS COUNTRY. THINK ABOUT IT DO THE MATH. THAT'S A 9-11 TRAGEDY EVERY MONTH IF YOU ADD IN SUICIDES AND SOME OTHER THINGS. 32 PEOPLE A DAY ARE KILLED BY ILLEGAL GUNS. AND NOBODY CARES BECAUSE IT'S SPREAD ACROSS THE COUNTRY. I'VE HAD TO GIVE EULOGIES AT POLICE OFFICERS' FUNERALS. MOST OF THE TIMES I WAS THE ONE WHO HAD TO LOOK THE SPOUSE OR THE PARENT IN THE EYE AND SAY, "I HAVE SOME BAD NEWS. BUT YOUR SON OR YOUR HUSBAND OR YOUR BROTHER OR YOUR FATHER HAS JUST BEEN KILLED." BUT NOTHING I CAN DO ISN'T GOING TO BRING BACK THEIR LOVED ONES. AND I JUST DON'T WANT TO DO THAT ANYMORE. AND I THINK THAT THE PEOPLE WHO VOTE TO PROTECT THE CRIMINALS AND TO KEEP THE INFORMATION AWAY FROM THE POLICE SO THAT THEY CAN'T GET THE GUNS AWAY BEFORE THEY'RE USED TO MURDER THEY DON'T HAVE TO DO THAT. THAT'S WHY YOU SEE 245 MAYORS FROM ACROSS THIS COUNTRY WHO'VE GOTTEN TOGETHER. BECAUSE THE MAYORS HAVE TO DEAL WITH THE REAL WORLD OF BEING CALLED IN THE MIDDLE OF THE NIGHT. BUT THE NATIONAL RIFLE ASSOCIATION, THE NRA, IS STRONGER THAN THIS WHOLE GROUP OF MAYORS BASED ON THE RECORD. LET'S SAY WE HAVEN'T WON YET. BUT YOU KNOW, THERE'S GOING TO BE A TIME, DAN, WHEN-- THE COP IS YOUR CHILD. YOU'RE GOING TO SAY, "WAIT A SECOND, ENOUGH, WE'RE NOT GOING TO TAKE IT ANYMORE." AND OTHER PEOPLE ARE GOING TO RALLY WITH YOU. YOUR OPPONENTS ON THIS ISSUE SAY, "LISTEN, DAN RATHER WHAT YOU'VE GOT YOU'VE-- GOT THIS QUOTE, NORTHERN, LIBERAL, TYPICAL ANTI-GUN GUY WHO'S RUNNING THIS PROPAGANDA CAMPAIGN TO TAKE AWAY OUR SECOND AMENDMENT RIGHTS." NOBODY'S TRYING TO TAKE AWAY THE SECOND AMENDMENT RIGHTS. I USED TO HAVE A RIFLE AS A KID-- WAS A MARKSMAN IN THE BOY SCOUTS. WE HAVE LAWS THAT YOU CAN GET A PERMIT TO CARRY A GUN IN NEW YORK. I DON'T HAPPEN TO BE A HUNTER BUT I HAVE NO PROBLEMS WITH YOU OWNING A GUN. I DO HAVE A PROBLEM WITH PEOPLE WITH CRIMINAL RECORDS GETTING GUNS. AND SO DOES THE CONGRESS. THE CONGRESS VOTED THESE LAWS THAT SAY IF YOU HAVE A RECORD YOU CAN'T BUY A GUN. IT ISN'T THE CONGRESS IS WITH THE NRA OR MAYBE CONGRESS IS TRYING TO BE ON BOTH SIDES. THEY VOTE THAT AND THEN THEY VOTE TO KEEP THE INFORMATION THAT THE POLICE NEED AWAY FROM THE POLICE. I'LL TELL YOU HOW SICK THIS LAW IS THAT THEY PASSED. POLICE CAN INVESTIGATE WHERE A GUN COMES FROM-- THEY GIVE YOU THAT RIGHT- AFTER SOMEBODY'S MURDERED. THEY CAN'T GO AFTER IT BEFORE. NOW, JUST THINK ABOUT WHAT WOULD HAPPEN IF WE HAD A LAW IN THIS COUNTRY THAT SAID THE POLICE CAN'T LOOK FOR A DRUG DEALER UNTIL SOME KID OD'S AND IS LYING IN THE STREET DEAD. I DON'T THINK THE PUBLIC WOULD STAND FOR THAT. SEE, THERE ISN'T AN NRA FOR DRUGS. AND IT'S REALLY THE SAME THING. NOBODY'S TRYING TO TAKE AWAY YOUR SECOND AMENDMENT RIGHTS. WE HAVE AN ORGANIZATION, THE AMERICAN HUNTERS AND SHOOTERS ASSOCIATION, THAT'S WITH US. MOST POLICE ORGANIZATIONS-- I THINK THERE'S ONE THAT'S AGAINST-- TRYING TO STOP THIS TERRIBLE PIECE OF LEGISLATION, THE SO-CALLED TIAHRT AMENDMENT. MOST PEOPLE UNDERSTAND THE ISSUE, PLAIN AND SIMPLE. BUT ALL WE'RE TRYING TO DO IS GIVE THE POLICE DEPARTMENT MANY OF WHOM ARE MEMBERS OF THE NRA GIVE THEM THE INFORMATION THEY NEED TO GET GUNS OUT OF THE HANDS OF CRIMINAL, PERIOD, END OF STORY. HIS OUTSPOKEN VIEWS AREN'T LIMITED TO GUN CONTROL. WITH OVER 800 DAYS LEFT IN OFFICE, HE HAS AN AMBITIOUS AGENDA THAT COVERS EDUCATION REFORM AND HEALTHCARE. THOUGH NOT INTENDING TO RUN FOR ANOTHER PUBLIC OFFICE, HIS CONCERNS REPLICATE, IN MANY PARTS, THOSE OF THE CURRENT PRESIDENTIAL CANDIDATES. I HAVE TO GET CRIME OUT OF-- OFF THE STREETS TO HELP REDUCE CRIME. I HAVE TO MAKE PUBLIC EDUCATION WORK WHETHER YOU SEND YOUR KIDS TO PRI-- TO PUBLIC SCHOOLS OR NOT. IT'S THE PUBLIC SCHOOL KIDS TODAY THAT ARE GOING TO BE THE LEADERS AND THE TAXPAYERS OF TOMORROW. THEY'RE THE ONES THAT ARE GOING TO PAY FOR YOUR RETIREMENT. IMMIGRATION, WE LIVE WITH IMMIGRANTS EVERYDAY. THAT'S THE STRENGTH OF NEW YORK. THE STRENGTH OF AMERICA IS HAVING IMMIGRANTS COME INTO THIS COUNTRY. AND THEY-- THEY WORK WITH THEIR BRAINS. AND THEY WORK WITH THEIR SWEAT. AND THEY DO EVERY SINGLE THING. AND THAT'S THE WAY THIS COUNTRY WAS FOUNDED. AND THAT'S WHY IT'S DONE SO WELL. WE HAVE WHO'S GOING TO PAY FOR HEALTH CARE. SOMEBODY'S GOT TO MAKE SOME REAL DECISIONS. WHERE DO WE ADD CLINICS? WHERE DO WE ADD HOSPITALS? WHAT DO YOU DO WHEN THE HOSPITALS OR CLINICS ARE IN THE WRONG PLACE? WHO'S GOING TO STAND UP AND MOVE 'EM? BECAUSE WE CAN'T AFFORD EVERYTHING. WHO'S GOING TO PAY FOR IT? THERE ARE A HANDFUL OF ISSUES THAT CONGRESS SEEMS UNWILLING TO ADDRESS. AND THAT IF WE DON'T YOUR CHILDREN AND MINE DON'T HAVE THE KIND OF FUTURE THAT WE WANT TO LEAVE THEM. LISTEN TO YOU TALK THAT WAY, YOU MUST GO THROUGH YOUR MIND, WHO AMONG THE CURRENT DEMOCRATS-- WE'LL COME TO REPUBLICANS-- WHO AMONG DEMOCRATS COMES CLOSEST TO HAVING AN AGENDA ALONG THE LINES OF WHAT YOU HOPE TO ACCOMPLISH HERE IN NEW YORK? I THINK, NUMBER ONE, I'VE SAID I'M GOING TO STAY OUT OF THE PRESIDENTIAL RACE. AFTER ALL, JOHN MCCAIN AND RUDY GIULIANI DID ENDORSE ME. AND HILLARY CLINTON I WORK WITH, TALK TO HER EVERY WEEK OR TWO. SHE'S BEEN A VERY GOOD SENATOR FROM NEW YORK. RUDY MADE THIS IMPROVED THIS CITY AND LEFT ME WITH SOME GOOD THINGS TO BUILD ON. AND MCCAIN, I'VE ALWAYS THOUGHT, IS A GREAT AMERICAN. SOME OF THE OTHERS I KNOW CASUALLY. I MET THEM. I WAS ACTUALLY ON LAW AND ORDER WITH FRED THOMPSON TWICE. I'M SURE YOU SAW THE BOTH OF THOSE BRILLIANT EPISODES. WE CAN AND WE WILL EXACT THE FULL MEASURE OF PUNISHMENT UNDER THE LAW. FOR THE KILLER OR KILLERS OF DANIEL TANOVSKI I'M GOING TO STAY OUT OF IT. HONESTLY, I MISSED THAT MAYOR. YEAH, I'M SURE YOU DID. WHAT YOU WANT TO DO IS LET THEM ALL SAY WHAT THEY BELIEVE AND THEN LOOK 'EM IN THE EYE AND SEE WHETHER OR NOT YOU TRUST THEM AND WHETHER OR NOT WHAT THEY'VE SAID IN THE PAST IS AN EXAGGERATION OR IS TRUTHFUL. WHAT THEY ARE GONNA AND THE QUESTIONS THEY'RE GOING TO ANSWER ARE NOT THE QUESTIONS THAT THEY'RE GOING TO BE FACED WITH WHEN THEY ARE IN OFFICE. I THINK WHO THEY ATTRACT WILL-- TO WORK WITH THEM IS THE MOST IMPORTANT THING. WHAT I DO IN MY JOB IS I ATTRACT GOOD PEOPLE. I'VE GOT 300,000 EMPLOYEES. I'VE GOT SEVEN DEPUTY MAYORS, 40 ODD COMMISSIONERS. THEY'RE THE ONES WHO DO THE WORK. YOU HAVE A REPUTATION OF BEING A TRUTH SAYER. AND YOU SAID-- I'M 65 YEARS OLD. I'M TOO OLD TO MAKE IT UP. THE PRESIDENT DID-- YOU KNOW, ONE CAN NEVER RULE OUT EVERYTHING COMPLETELY TOTALLY. BUT YOU WERE PRETTY CONCRETE IN WHAT YOU SAID. I WANT TO MAKE SURE IF SOMEBODY COMES TO YOU AND SAYS, "WILL YOU RUN WITH ME AS A VICE-PRESIDENT," ARE YOU OPEN TO THAT AT ALL? NO, I HAVE NO INTEREST IN DOING THAT. I'M-- BECOMING SECRETARY OF THE TREASURY, SECRETARY OF DEFENSE? NOBODY IS GOING TO DELEGATE A LOT OF POWER TO A SECRETARY THAT THEY CAN'T CONTROL. AND I DON'T THINK THAT ANYBODY WOULD ASK ME TO DO IT. I'D BE HAPPY TO PROVIDE ADVICE IF ANYBODY ASKED ME NO MATTER WHO THE PRESIDENT IS. I SAID I'M GOING TO STAY OUT OF THE RACE BECAUSE I HAVE TO WORK WITH WHOEVER GETS ELECTED AND REPRESENT THE PEOPLE OF NEW YORK CITY. AND MY JOB IS TO REPRESENT THEM AND PUT THAT AHEAD OF ANY OF MY OWN PERSONAL ASPIRATIONS. I'M A WORKAHOLIC. AND I'LL GO EIGHT YEARS IN THIS JOB WITHOUT -- A VACATION. AND THEN I'D SORT OF LIKE TO TAKE A WEEK OFF AND FIGURE OUT WHAT TO DO NEXT. BUT I THINK PHILANTHROPY WILL BE A GREAT THING FOR ME. I'M VERY INTERESTED IN PUBLIC HEALTH ISSUES. I'VE GIVEN A LOT OF MONEY TO TRY TO STOP SMOKING AROUND THE WORLD. THIS CENTURY A BILLION PEOPLE IN THIS WORLD WILL DIE FROM SMOKING. THINK ABOUT THAT. THERE'S A LOT OF THINGS THAT I THINK ARE FUN, INTERESTING. AND THEN I CAN LOOK BACK AND SAY I HAD A CAREER IN BUSINESS WITH A BIG COMPANY. I HAD A CAREER STARTING A SMALL COMPANY AND MADE IT BIG. I'VE HAD CAREER IN GOVERNMENT AND A CAREER IN PHILANTHROPY. IT'D BE PRETTY NICE. MAYOR, THANK YOU -HAPPY TO DO IT GOOD TO SEE YOU NEW YORK CITY MAYOR MICHAEL BLOOMBERG, NOW AN UPDATE ON SOME STORIES WE PREVIOUSLY BROADCAST, FIRST THE TOXIC TRAILERS OF MISSISSIPPI

THOUSANDS OF RESIDENTS ALONG THE MISSISSIPPI AND LOUISIANA GULF COAST STILL CALL THESE TRAVEL TRAILERS HOME. NOW TWO YEARS AFTER HURRICANE KATRINA AS WE REPORTED LAST MAY, SOMETHING IN THE TRAILERS IS MAKING PEOPLE SICK, THE CHIEF SUSPECT IS FORMALDEHYDE A CHEMICAL BYPRODUCT OF BUILDING MATERIALS USED TO MANUFACTURE THE TRAILERS AND A KNOWN CARCINOGEN. RESIDENTS OT THESE TRAVEL TRAILERS REPORTED EXTENSIVE RESPIRATORY PROBLEMS THE FEDERAL EMERGENCY MANAGEMENT AGENCIES INITIAL RECOMMENDATION, OPEN THE WINDOWS BUT AFTER IGNORING COMPLAINTS FEMA OFFICIALS WERE CALLED BEFORE CONGRESS WHERE IT WAS DISCLOSED THAT THE FEDERAL AGENCY KNEW ABOUT THE PROBLEMS WITH CHEMICAL ODORS MONTHS BEFORE DISCLOSING IT AND THAT LAWYERS FOR FEMA HAD ADVISED GOVERNMENT OFFICIALS TO DOWNPLAY THE PROBLEM DO YOU THINK THAT THE FORMALDEHYDE LEVEL THAT THEY WERE EXPOSED TO WAS SAFE? NOW THE AGENCY HAS DONE AN ABOUT FACE FEMA'S DIRECTOR HAS ISSUED A DIRECTIVE THAT SAYS HIS AGENCY WILL NO LONGER BUY, SELL, OR USE TRAVEL TRAILERS FOR DISASTER RELIEF AND ANYONE STILL LIVING IN THE TRAILERS WILL BE IMMEDIATELY OFFERED RELOCATION NATIONWIDE AT FEMA'S EXPENSE FEMA AND THE ENTIRE DEPARTMENT OF HOMELAND SECURITY ARE COMMITTED TO INSURING THAT THE VICTIMS OF DISASTERS ARE SAFE AND HAVE A HEALTHY PLACE TO LIVE DURING THE RECOVERY PERIOD THE HEALTH AND SAFETY OF THE RESIDENTS IS MY PRIMARY CONCERN

JUST LAST MONTH, WE BROUGHT YOU THE STORY OF MARINE JUSTIN SHARRATT WHO FACED THREE COUNTS OF UNPREMEDITATED MURDER IN THE DEATHS OF IRAQI CIVILIANS IN HADETHA IRAQ SHARRATT AND THREE OTHER MARINES WERE ACCUSED OF GOING ON A RAMPAGE IN NOVEMBER 2005 AFTER AN IMPROVISED EXPLOSIVE DEVICE EXPLODED UNDER THEIR CONVOY KILLING A FELLOW MARINE SHARRATT AND HIS FAMILY SAID THE MARINES WERE IN A FIREFIGHT THAT DAY AND THAT HE FOLLOWED PROPER RULES OF ENGAGEMENT AND ACTED IN SELF DEFENSE EARLIER THIS MONTH AFTER AN EXHAUSTIVE INVESTIGATION, HOURS OF HEARINGS AND THOUSANDS OF PAGES OF TESTIMONY THE GENERAL IN CHARGE DISMISSED ALL CHARGES AGAINST LANCE CORPORAL JUSTIN SHARRATT WITH HIS MILITARY OBLIGATION ENDING SOON, SHARRATT IS CURRENTLY DECIDING WHAT HIS PLANS FOR THE FUTURE WILL BE. AND LAST WEEK WE BROUGHT YOU THE STORY OF TOUCH SCREEN VOTING MACHINES AND HOW MANY OF THE MACHINES MANUFACTURED BY ELECTION SYSTEMS AND SOFTWARE ES&S WERE ASSEMBLED IN THE PHILIPPINES UNDER SWEAT SHOP LIKE CONDITIONS THE DAY OF OUR REPORT, THE DIRECTOR OF VOTING SYSTEMS CERTIFICATION FOR THE UNITED STATES ELECTION ASSISTANCE COMMISSION WROTE A LETTER TO ES&S DEMANDING TO KNOW WHY THE COMPANY HAD FAILED TO DISCLOSE MANILA AS ONE ITS MANUFACTURING LOCATIONS IN RESPONSE, ES&S SAID THE OMISSION OF THE MANILA PLANT WAS AN UNINTENTIONAL OVERSIGHT IN A SEPARATE RESPONSE TO OUR REPORT ES&S ARGUED THAT ITS IVOTRONIC TOUCH SCREEN MACHINES ARE RELIABLE AND UNDERGO EXTENSIVE AND REPEATED TESTING FROM THE FACTORY TO THE LOCAL ELECTION JURISDICTIONS BEFORE VOTERS EVER VOTE ON THEM NONETHELESS, IN ADDITION TO THE ALLEGATIONS IN OUR PROGRAM VOTER ADVOCACY GROUPS LIKE VOTERS UNITED.ORG HAVE COLLECTED INCIDENCE REPORTS FROM VOTERS AROUND THE COUNTRY WHO SAY THAT SOME OF THE IVOTRONICS DID NOT WORK PROPERLY WE'LL HAVE MUCH MORE ABOUT VOTING MACHINES IN THE COMING WEEKS AND I'LL BE BACK WITH SOME FINAL THOUGHTS FOR TONIGHT IN A MOMENT FROM THE MOMENT THAT PRESIDENT BUSH DECIDED TO MAKE PAKISTAN AN ALLY- RATHER THAN AN ENEMY- IN THE FIGHT AGAINST AL QAEDA AND THE TALIBAN, THE UNITED STATES HAS FOUND ITSELF PART OF A SUPREMELY DELICATE BALANCING ACT, IN WHICH THE STAKES COULD NOT POSSIBLY BE HIGHER. ONE ON SIDE OF THE BALANCE IS GENERAL MUSHARRAF'S RULE, AND THE INVESTMENT WE HAVE MADE IN HIM. ON THE OTHER SIDE ARE: -OUR DECISION TO SOFT-PEDAL OUR REACTION TO PAKISTAN'S ROLE IN THE SPREAD OF NUCLEAR WEAPONS. -THE DANGER, WHICH WE'VE SEEN PLAY OUT, THAT MUSHARRAF WOULD NEVER BE ABLE TO COMMIT FULLY TO ERADICATING AL QAEDA IN A NATION WHERE THERE IS MUCH SYMPATHY FOR THE GROUP, THUS GIVING THE TERRORISTS A CHANCE TO REGROUP. -AND SURMOUNTING ALL THIS, THE ULTIMATE THREAT OF PAKISTAN'S NUCLEAR ARSENAL FALLING INTO THE HANDS OF AMERICA'S WORST ENEMIES. NOW, WITH NEWS OF POWER-SHARING NEGOTIATIONS, COMES A NEW BALANCING ACT: ON ONE SIDE THERE IS THE REASSURING SENSE THAT THE BUSH ADMINISTRATION IS TAKING STEPS TO FORESTALL A DEEPENING CRISIS IN PAKISTAN; ON THE OTHER SIDE, THE RISK THAT OUR INTERVENTION, CONCEIVED WITH U.S. INTERESTS IN MIND- RATHER THAN THE INTERESTS OF THE PAKISTANI PEOPLE- WILL ONLY DEEPEN RESENTMENT AGAINST AMERICA IN THIS VOLATILE PART OF THE WORLD AND ULTIMATELY STRENGTHEN THE HANDS OF OUR ENEMIES.

FOR HDNET, DAN RATHER REPORTING. GOODNIGHT