• This is a rush transcript from "The Journal Editorial Report," April 28, 2007.

    PAUL GIGOT, HOST: This week on the "Journal Editorial Report," mad TV. How U.S. taxpayers are subsidizing terrorist propaganda on the Arab satellite network, al-Hurra.

    Plus, the Republican presidential candidates hold their first debate but the man with the most buzz was nowhere to be seen. Will Fred Thompson get into the race and when?

    Trial lawyers funneled millions of dollars into the Democrats' effort to retake Congress. Find out how they are being paid back right after these headlines.

    (NEWSBREAK)

    GIGOT: Welcome to the "Journal Editorial Report." I'm Paul Gigot.

    When it launched in 2004, the U.S. taxpayer-funded al-Hurra satellite network was to be a voice of moderation in the Arab world.

    Under new leadership, the channel, seen in 22 countries across the Middle East, has taken a decidedly radical turn, airing puff pieces on Holocaust deniers and speeches by known Islamic terrorists.

    Journalist Joel Mowbray has led the pack on this story and he joins me now in the studio with more.

    Joel Mowbray, welcome.

    JOEL MOWBRAY, INVESTIGATIVE JOURNALIST: Thank you.

    GIGOT: You say al-Hurra is not fulfilling its moderate mission in the Middle East. Give our audience examples of what it is broadcasting.

    MOWBRAY: Well, it is not even so much a moderate mission as a truth and information mission. We are the ones that are supposed to be counteracting the propaganda that is rampant in the Arab world.

    Instead, we are putting on things like interviews with al-Qaeda operatives, such as Muhammad Hanja (ph), who's in Bahrain, where on November 26 of last year, we interviewed him. And he said that 9-11 brought him great joy because it rubbed America's nose in the dust.

    A week and a half later, they put on a speech by Hassan Nasrallah, the held of Hezbollah. By the five-minute mark in the speech, by the way, Nasrallah said to people firing guns in the air in celebration, "Don't fire your guns. Don't waste your bullets. Save them for where they belong, the chest of the enemy, the Israeli enemy."

    GIGOT: Tell us about coverage by the network of the Holocaust denial conference in Tehran. They covered that?

    MOWBRAY: Yes, they did. It was — it was astounding. I just got hold of the transcript a week ago.

    We all remember Ahmadinejad hosting this conference in Tehran with all these famous Holocaust deniers, and Dave Duke. And al-Hurra was there to cover it, but shouldn't have covered it the way they did because they did basically a puff piece.

    They went out and said, "Well here is what David Duke had to say about his praise for Ahmadinejad. And here is what the French historian says, that there is no evidence there were gas chambers used in the Holocaust."

    There was to rebuttal. There's no independent debunking. These guys were put on almost like an infomercial.