This is a rush transcript of "Special Report With Brit Hume" from June 1, 2007.

JIM ANGLE, FOX NEWS ANCHOR: Next on SPECIAL REPORT, some see a major shift, but Speaker Pelosi and others attack President Bush's climate change proposals as stale. President Bush urges lawmakers to show some courage on the new immigration bill, while some Democrats argue it's too strict and should let more people in. The U.S. and others blast Hugo Chavez and urge him to reopen a closed TV station. He called protests a U.S. plot. We'll take you inside of a Muslim compound in rural Virginia linked to a radical sheik in Pakistan.
And a conversation with three Iraqi war veterans about their experiences and the political debate here. All of that right here, right now. Welcome to Washington. I'm Jim Angle, in for Brit Hume. House Speaker Nancy Pelosi dismissed one of President Bush's latest proposals to reduce greenhouse gas emissions as a rehash of stale ideas, and another calls it a rope-a-dope on global warming. All of that just days before the president takes up the issue at a summit with European leaders. White House correspondent Wendell Goler reports.

(BEGIN VIDEOTAPE)

WENDELL GOLER, FOX NEWS WHITE HOUSE CORRESPONDENT (voice-over): While Europe was lukewarm to the president's global warming initiative, reaction in this country was hotter, if not more positive.

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: President Bush announced a climate change proposal that really was about changing the subject, but not changing the policy.

REP. ED MARKEY (D), MASSACHUSETTS: The president's goals are not aspirational, they're procrastinational.
GOLER: Democrats and environmentalists voiced disappointment at the president's call for global talks to decide by the end of next year how much greenhouse gases can be reduced. Europeans had hoped for a decision on that in next week's G-8 summit in Germany, but National Security Advisor Steven Hadley says too many issues are part of the global warming equation.

STEPHEN HADLEY, NATIONAL SECURITY ADVISOR: Secure energy, sustainable development, economic growth, pollution and climate change. These are interrelated issues.

GOLER: Former Vice President Al Gore, whose documentary about global warming won an Oscar, called the president's plan smoke and mirrors. Speaker Pelosi and Congressman Markey just returned from Greenland where they say officials told them global warming is already affecting fishing and tourism. The lawmakers accused the president of trying to undermine the U.N. climate change talks that led to the Kyoto Accord which he rejected two months after taking office.

MARKEY: What the president wants to do is set up a whole new process that will end just as he's leaving office, and pass this red hot issue on to his successor.

GOLER: But Kyoto doesn't include participation by China and India, which will one day be the world's largest greenhouse gas emitters. And aides say the global talks Mr. Bush envisions are intended to address that.

HADLEY: Actually getting the 15 major emitter countries together and getting some consensus among those countries could be an input to the U.N. process.

GOLER: Some environmentalists want to set emission limits and then let companies that exceed them buy credits from companies that are cleaner and greener. It's called cap and trade, and Speaker Pelosi says she'll try and get Congress to make it the law.

PELOSI: If the country is not willing to put forth cap and trade legislation, then, again, we can't be taken seriously about the issue of global warming.

GOLER: But some experts say that cap and trade doesn't work so well in a global economy when companies can avoid pollution limits in one country by shifting production to subsidiaries over seas.

JIM CONNAUGHTON, COUNCIL ON ENVIRON QUALITY: It does no good to cap your emissions here if it's going to lead to an increase in emissions some place else.

GOLER: German Chancellor Angela Merkel welcomed the president's climate change proposal as common ground on which one can act, but her environment minister wasn't satisfied. He said the president's plan is not the direction Germany or Europe as a whole want to go. We'll see if he gets invited to dinner next week. Jim?

ANGLE: Thanks Wendell. Dan Bartlett, the White House counselor who has been an important part of President Bush's inner circle since Bush's days as Texas governor, announced he will resign effective July 4th. Bartlett, who turned 36 today, said he's looking for a less demanding job, what wouldn't be, so that he can help raise his three sons, all under the age of four. His wife gave him a little nudge, suggesting that their third son, born four months ago, be named exit strategy. Secretary of State Condoleezza Rice, in Madrid for talks with Spain's foreign minister, said she sees no evidence showing Iran is willing to suspend its nuclear activities, as demanded by the United Nations Security Council. And she criticized the Chief U.N. nuclear monitor Mohamed el-Baradei for what she called muddying the message on what to do about the nuclear program. El-Baradei recently said that Iran's nuclear program was already too advanced for efforts to withhold enrichment capability, and suggested a compromise allowing Iran small-scale enrichment. Chain migration describes the means by which people who immigrate to the U.S. and bring their relatives, and then bring their relatives. The embattled immigration bill the senators will debate next week severely restricts the immigrant's ability to bring family members to the United States. Congressional correspondent Major Garrett reports.

(BEGIN VIDEOTAPE)

MAJOR GARRETT, FOX NEWS CONGRESSIONAL CORRESPONDENT (voice-over): Family migration, also called chain migration, will shrink if the Senate immigration compromise holds, and the top Democrats don't like that idea one bit.

SEN. ROBERT MENENDEZ (D), NEW JERSEY: Family reunification will be deemphasized under this deal, serving to tear families apart. And from a moral perspective, this undermines the family values I hear so many, in different context, so many of my colleagues, talk about.

GARRETT: Critics of contemporary chain migration contend that it made sense generations ago, when America was less populated, but makes much less sense now.

JACK MARTIN, FED. FOR AMERICAN IMMIGRATION REFORM: We simply do not need large migration like we did at one time. We should really look at reducing immigration and trying to stabilize our population.

GARRETT: The Senate compromise will first seek to eliminate an eight-year backlog of applications for legal family migration that sets aside more than half a million visas for this purpose each year. But the compromise only grants legal status to immigrants who applied for it before May 1st, 2005. Those afterwards will have to apply under a skills-based point system.

FRANK SHARRY, NATL IMMIGRATION FORUM: What you have now is a legal immigration system that is roughly 2/3 family, 1/3 employment based, or economic-needs based. After the first eight-year period of transition, it will be more like 50/50.

GARRETT: After abolishing the family migration backlog, the compromise limits family migration to spouses and minor children. It ends preferences for adult children, brothers and sisters, and severely limits visas for grandparents. These restrictions, fought for by conservatives, apply to relatives of U.S. citizens and legal permanent residents. Family members excluded under these new rules must earn legal entry through the points system, where points awarded for jobs skills, education and English proficiency far outweigh points awarded for family ties. Immigration experts call this—
SHARRY: A significant shift in reducing family as the cornerstone of legal immigration, and increasing skill, education and high demand occupations as the key. That's a big change, very controversial.

GARRETT: Many Democrats consider the skills-based system unfair.

UNIDENTIFIED MALE: This nation has been built by immigrants who came here to achieve success, but the deal tilts towards immigrants whose success stories are already written.

GARRETT: Next week, presidential rivals Hillary Clinton and Barack Obama will try to create more room for chain migration, one, by covering anyone who applied by January of this year under the old entry rules, and two, by expanding the definition of those allowed in under new chain migration rules. Some immigration experts doubt that family reunification is essential.

MARTIN: The United States is not the only country in the world in which a family may be reunited. If it's important to be living with your extended family, perhaps you should work for a few years in the United States and then return to where that family is.

(END VIDEOTAPE)
GARRETT: The fate of this grand immigration compromise may rest on this issue. Arizona Republican John Kyl, the GOP architect of this compromise, told Fox that if Democrats succeed in adding family migration or chain migration back into the bill, he will oppose it. And he predicted, so will many other Republicans tenuously on board. Jim?

ANGLE: Thank you, Major. It was a record close for Wall Street today after a bit of good economic news. The economy created 157,000 new jobs last month, more than anticipated by analysts. The unemployment rate remained at 4.5 percent. A separate report showed inflation is slowing a bit, suggesting the Fed will see no need to raise interest rates. Later on SPECIAL REPORT, what's going on in the secluded Muslim community in rural Virginia linked to a radical sheik? We'll take you behind the scenes. And we're live in Caracas, Venezuela, where the demonstrations against President Hugo Chavez continue. That report coming up next.

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ANGLE: There are renewed demonstrations today on the streets of Caracas. The protest in response to Venezuelan President Hugo Chavez's decision to pull the plug on the country's most popular private television station earlier this week. Adam Housley has been in Caracas following this story all week long, and now has the latest. Adam?

ADAM HOUSLEY, FOX NEWS CORRESPONDENT: Jim, we actually have some breaking news for you coming to us right now in Markidle (ph), a very large city here in Venezuela, about a two-hour flight from Caracas, where we are located. There was supposed to have been a soccer game tonight between the Venezuelan national team and the Canadian team, but there's been a sit-in by protester there is.

The significance is, President Chavez was supposed to have been there to watch that game. Stay with Fox. We'll have more information for you on that as we get it. Meantime, that comes as RCTV is now on YouTube. The station the really caused all these issues when they were shut down forcibly by President Chavez on Sunday night at 11:58, which in the wake now has all these protests, has found a way to get their shows out several times a day on the popular online site. Also, their shows are being re-broadcasted by a Colombian station nearby that reaches about one million Venezuelan homes. Now that comes as the protests continued here today again, and also President Chavez may be having some problems around the region. In Brazil, leaders there questioned Chavez for calling them parrots of the U.S. government. Recently, Chilean leaders also had some words for President Chavez for his criticism towards them about RCTV's closure. And in Spain we heard from Condoleezza Rice as she met with Spanish leaders. Here's what she had to say about the situation.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: It's very important that Venezuela, which, after all, sits in a region that is largely free and Democratic, would act in a Democratic way.

(END VIDEO CLIP)

HOUSLEY: Again, that's Condoleezza Rice in Spain. Jim, today, as for those protests, about 10,000 or so anti-Chavez people marched through the streets. They faced off with about 500 Chavistas (ph), which are socialist loyalists to Chavez. They were separated by the police, and then it came here to the Catholic University. There were no clashes thus far today. Jim?

ANGLE: Adam, thank you very much. Defense Secretary Robert Gates said the U.S. is considering a long-term military presence in Iraq, similar to that in South Korea and Japan. Gates says the U.S. is looking beyond its surge strategy to the type of military presence the U.S. will have in Iraq over the long-term.

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: A mutual agreement, where Americans, some force of Americans, mutually agreed, with mutually agreed missions, is present for a protracted period of time, but in ways that are protective of the sovereignty of the host government, and where there are rules that limit what the U.S. forces can and can't do while they're in a sovereign country.

(END VIDEO CLIP)

ANGLE: Defense Secretary Robert Gates. Former French President Jacques Chirac has a slew of investigators just waiting for him to officially become a regular citizen of the republic so they can question him about legal cases that go back to his tenure as the mayor of Paris. Correspondent Amy Kellogg has that story.

(BEGIN VIDEOTAPE)

AMY KELLOGG, FOX NEWS CORRESPONDENT (voice-over): The end of Jacques Chirac's presidency may just be the beginning of the troubles he's avoided for decades. Now that he's out of office, the legal immunity he enjoyed as president is out the door too. French judges are poised to dig into allegations of fraud that have dogged the former French president since he was the mayor of Paris in the 1980's and 1990's. And now a prominent news weekly reports new details about an alleged undeclared bank account Chirac held in Japan in the 1990's, filled with 60 million dollars of mysterious origins. The journalist who broke the story says that if the account exists, it would be the coup de grace for France's long serving president.

CANARD ENCHAINE, FRENCH JOURNALIST (through translator): If the sum is confirmed, it will be the biggest scandal implicating a politician ever in France. it will be difficult, if it's proven, for Chirac to totally escape justice.

KELLOGG: But the sense you get in Paris is that many French don't want to see their former president go down, because corrupt or clean, many simply like the guy, his human touch, his Frenchness. Some say the French are too lenient with their leaders and it's time they started treating politicians like mere mortals. Former Judge Eva Joly says the Chirac files need to be thoroughly investigated to demonstrate that no one is above the law and that France is ready to reverse decades of what she calls institutional corruption.

EVA JOLY, FORMER JUDGE: I think that France is working on this, but there is still strong forces that think that impunity is something quite normal when you are a president or a minister or you have been minister or president.

KELLOGG: One of Chirac's biographers doubts that Chirac will ever have his day in court.

NICHOLAS DOMENADH, BIOGRAPHER (through translator): There will be judges who will try to seek an accounting from Jacques Chirac, but there will be, at the same time, a concerted effort from the political powers to prevent it.

KELLOGG (on camera): Chirac has yet to respond to the latest corruption allegations, but in the past he has denied the existence of the Japanese bank account, and has called charges against him ludicrous. It's been widely noted, however, that shortly before leaving office, Chirac appointed three close political allies to top judicial positions in Paris and elsewhere, positions that will play a key role in any investigations going forward. In Paris, Amy Kellogg, Fox News.

(END VIDEOTAPE)

ANGLE: Next on SPECIAL REPORT, an American hero, a soldier wounded in Iraq, joins us to talk about his experience and the war. And later on, does a Muslim community in Virginia have ties to a group of counterfeiters or something worse? We'll take a closer look.

(COMMERCIAL BREAK)

ANGLE: You're used to hearing about the war in Iraq from our reports from the Pentagon, Baghdad, the White House and Capitol Hill, but from time to time we like to check in with the people who have been on the ground fighting that war. With us today are two of those men, David Folkerts and Javier Sanchez, one in the Army, one in the Marine Corps. We'll let you tell us which one gentlemen. Thanks for joining us.
Let me ask you first, everybody in the war sees their own slice of what is going on in Iraq. Lieutenant David Folkerts, what is the biggest problem that you encountered on the ground in Iraq?

1ST LT DAVID FOLKERTS, US ARMY CORPS OF ENGINEERS: Well, for every soldier there's obviously a day-to-day basis of dealing with EDS and the roadside bombs, without a doubt the most physical danger that soldiers face in Iraq.

ANGLE: Yes and that's a big problem, isn't it, Captain Javier Sanchez, because a lot of those things are now coming in from Iran, I gather?

CAPTAIN JAVIER SANCHEZ, US MARINE CORPS: It is, and to know your enemy is one of the most important things that you can have in combat. And your enemy changes all the time. That's the nature of combat. You have to adjust to your environment constantly.

ANGLE: And we're constantly adjusting because the IEDs have gotten more powerful, even as we put more armor on the humvees, and it continues to go back and forth that way.

SANCHEZ: Well, it's also game plan in combat. You go out with a mission and all of that. You cannot plan on what the enemy is going to be doing. You have an expectation of what they're going to be doing. But you really have to adjust to your environment.

ANGLE: What about—Obviously there are Iraqis who are trying to do you in, trying to force the U.S. out, but what about Iraqis, regular Iraqis, who may be depending on U.S. forces for their safety? David, did you—how much contact did you have with Iraqis, and what do they say to you?

FOLKERTS: Well, when I was there I had a lot of contact with local Iraqis. It's kind of a strange situation where literally in one place all of the Iraqis there will be very friendly to you, and they're very pro-coalition. And you just go down a few miles down the road and the Iraqis will be very anti-coalition, and they'll be trying to kill you. So it's literally that type of environment there.

ANGLE: Can you tell the difference? I mean, obviously people come up to you. They're not going to tell you that they'll be later in an ambush waiting to shoot at you. Can you tell?

FOLKERTS: It is literally impossible to tell because insurgents there are within the populous of the people, and that type of enemy is hard to fight. And that's just the way they want it to be. They want it to be within the populous for the people there, and they don't want to stand out.

ANGLE: Now, Javier, that's obviously a problem in any counter-insurgency situation. It's hard to tell the enemies from the friendly.

SANCHEZ: Absolutely, and in past combat the enemy was very well identified. They wore uniforms. They walked in formation. Nowadays, a guy could be looking at you, be talking to you one day and the very next day you're engaging him in combat.

ANGLE: And that's the one thing that is similar to Vietnam, is that it's a counter insurgency.

FOLKERTS: Correct.

SANCHEZ: It is.

ANGLE: Now, let me ask you about treatment coming back. Obviously in this war we've got well over 3, who have been killed, but many, many more who have been wounded. But in this war the wounded are surviving much better than they did in Vietnam, for instance. There was a recent controversy, David, about Walter Reed, where you were, suggesting conditions were pretty bad. What kind of treatment have you gotten and what did you make of that controversy?

FOLKERTS: I was injured in 2005, in April. And I was in-patient for eight weeks at Walter Reed. The care that I received there was outstanding. It was excellent. And without a doubt I agree that there has been some problems at Walter Reed, especially for the outpatients, but also I'd definitely have to say that the media really blew things out of proportion, as far as how things really are. And I think that they're looking for a story and for something negative to write about. But overall I feel that things are definitely improved there. I'm still an outpatient there right now.

ANGLE: You mean, they made it seem worse than it really was, do you agree?

SANCHEZ: I would say a thousand times worse than it really was. The health care at both Bethesda and Walter Reed is second to none in this country. We have had Marines and Soldiers that should have not lived, that should have lost limbs; their whole lives would have changed. But because of the very personal and hands on care that happened at Walter Reed and Bethesda, we have Marines and Soldiers that are still surviving, that get to hug their families. I know a marine that should have lost his legs, and he can walk his daughter down the aisle in a couple of years. He still has his legs.

ANGLE: That's wonderful. Let me ask you one last question about the political debate here in Washington. You have both been back for a while, so you're familiar with the debate. But when you're over there, how much attention to people pay to the political debate here in Washington? And what do they make of it, David?

FOLKERTS: Without a doubt we pay attention for it. But, for us, we're concentrating on our job over there. And that's our number one priority. And no matter what side of the debate you're on, you need to support the troops in all that we do. And you need to provide all of the funding and all of the supplies that we need. So there shouldn't be debate about giving the troops what they need.

ANGLE: Either in or out, no halfway measures?

SANCHEZ: Absolutely not. You cannot say that I support the troops but — There's no ifs, ands or buts about it. You support the troops wholeheartedly and unequivocally or you just don't support the troops.

ANGLE: Right, in 15 seconds, David, you were telling me earlier you thought that if you are going to do it, you have to go in and do it full bore and not sort of half-step?

FOLKERTS: Definitely, and I think that during the past several years I would think that we've been giving the absolute effort that we possibly could be giving. And I think that it's—with the situation that we have right now—

ANGLE: I've got to go, sorry about that. Thank you very much, gentlemen, for joining us. We have to take a break to pay some bills. When we come back, Joe Wilson's wife sues the CIA. And a spat between Obama and the auto industry on the Grape Vine.

(COMMERCIAL BREAK)

Click here to read the "Political Grapevine."

ANGLE: A group called Muslims of America claims that it pursues a peaceful existence at their compound in southwest Virginia, but federal authorities tell FOX NEWS that the group is on their radar after a major counterfeiting bust earlier this year. National correspondent Catherine Herridge paid a visit to the compound and filed this story.

(BEGIN VIDEOTAPE)

CATHERINE HERRIDGE, FOX NATIONAL CORRESPONDENT (voice-over): About 12 miles south of Appomattox where General Lee surrendered to General Grant in 1865, lies the town of Red House, Virginia. It's a small place by any standard. Just over 300 people, not a traffic light for miles and it's also home to this 44-acre compound run by Muslims of America.

THOMAS JONES, CHARLOTTE CNTY SHERIFF: The land was purchased and they said they thought that it was a good area for them to come into, they liked the area , it was secluded. For more than two decades Thomas Jones has been the sheriff of Charlotte County, which includes Red House. He has known the group since the early '90s.

JONES: We've had domestic dispute and some—several process issues and all, they always comply with our needs and the gate is always open, you know, we drive in, you know, freely.

HERRIDGE: This federal law enforcement fact sheet, obtained by FOX NEWS, links Muslims of America with a group called Jamaat al-Fuqra. The document states that its leader, Sheikh Gilani who lives in Pakistan, began preaching against the West back in 1981 at a mosque in Brooklyn. Jamaat al-Fuqra, the fact sheet states, has more than 35 suspected communes and more than 3,000 members spread across the United States, all in support of one goal—the purification of Islam through violence. The document states that shoe bomber Richard Reid and D.C. sniper John Alan Mohammed may be linked to the group. In 2002, Jamaat al-Fuqra got a lot of attention after the murder of Wall Street Journal reporter Daniel Purl who was apparently trying to see Gilani. Gilani denied any involvement in Purl's kidnapping. (on camera): What's your last name?
KUSI WASI, MAYOR: W-A-S-I.

HERRIDGE (voice-over): When FOX NEWS went to the compound we were met by Kusi Wasi who said he's the mayor of the community. WASI: A lot of people as questions, what is your philosophy? Our Philosophy is that we are Muslins.

HERRIDGE: Wasi would not give FOX a formal interview ,but off-camera he claimed the group is nonviolent and there is no link to Jamaat al-Fuqra. Wasi took FOX on a tour of the compound, but would not allow cameras. The living conditions appeared spartan and rundown. FOX was told thatzmost of the Muslims who live here are African-Americans, others comes from Mexico, Puerto Rico, and Europe.

JONES: They stay a while and it's kind of a wayside for some of them, they're traveling through, I guess, from one Muslim compound or village to the other.

HERRIDGE: In March, eight men were arrested in four states, part of a federal investigation into a multi-million dollar counterfeit goods ring. Federal law enforcement sources tell FOX there was a link to Muslims of America. Wasi confirmed that at least one of the suspects once lived at the compound, but he claimed that the man was asked to leave for, "antisocial behavior." Wasi also said they have guns, and "it's America, it's perfectly legal."

JONES: Whether these guys use them for hunting, I don't know, but they've admit they'd use them for target practicing and they are semi-automatic.

HERRIDGE: FOX NEWS went to the compound a second time to shoot more video from the public highway, the reception was less welcoming. (on camera): Who are you guys?

UNIDENTIFIED MALE: OK.

HERRIDGE: Do you live up on the compound?
OK. FOX NEWS.

HERRIDGE: Yeah. All right, thanks. (voice-over): At one point, the truck tailed our camera crew until FOX left Red House. Wasi apologized for the incident saying he didn't know if the men lived on the compound or in the town. In Red House, Virginia, Catherine Herridge, FOX NEWS.

(END VIDEOTAPE)

ANGLE: Attorney General Alberto Gonzales has been dogged by calls for his resignation by Democrats and some Republicans lately, as for his handling of the firing of several U.S. attorneys. Today in a speech about crime statistics, Gonzales seemed to be sending a message to those critics about just how long he intends to stay.

(BEGIN VIDEO CLIP)

ALBERTO GONZALES, ATTORNEY GENERAL: I know that I only have 18 months left in my term as attorney general, and that really does not feel like a lot of time to accomplish all of the goals that are important to me. So, often Washington seems to run at a marathon pace, but I intend to spend the next year and a half in a sprint to the finish line.

(END VIDEO CLIP)

ANGLE: Attorney General Alberto Gonzales, today. Up next on SPECIAL REPORT, Al Gore joins the chorus of critics taking aim at President Bush's new climate change proposals. And when is the last time that you heard the phrase "rope-a-dope?" The FOX all-stars will weigh in on all that, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

NANCY PELOSI (D-CA), HOUSE SPEAKER: President Bush announced a climate change proposal that really was about changing the subject, but not changing the policy.

REP ED MARKEY (D), MASSACHUSETTS: The president's goals are not aspirational, they're procrastinational.

(END VIDEO CLIP)

(LAUGHTER)

ANGLE: That just stands alone, doesn't it?

FRED BARNES, WEEKLY STANDARD: Good line. A very good line.

ANGLE: OK, you have two Democrats criticizing President Bush's proposals on climate change. Nancy Pelosi, speaker of the House, and Ed Markey.
Now some analytical observations from Fred Barnes, executive editor of the Weekly Standard; Mort Kondracke, executive editor of Roll Call; and the syndicated columnist, Chuck Krauthammer, FOX NEWS contributors, all.
Now, the aspirational reference was to one of the president's advisors who said that these weren't mandatory cuts the president was proposing, they were aspirational, in other words, goals, I believe, would be another word for that. Now, Charles, what the president proposed was getting the 15 top polluters, the top emitters, if you will, in the world, to get together and set goals for reducing their emissions, but no mandatory cuts. Is that what this debate is all about?

CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: It is and the reason that the Democrats are upset is because of their German proposal which would be at the G-8 meeting in a week which would impose unilaterally on the G-8 countries, the lesser Democracies and Russia, a cap, a hard cap on their emissions. The problem is, of course, it doesn't do anything about India and the rest of the world, but particularly India and China. China is creating a new co-powered power plant every week. Let's assume that with our caps the West did the equivalent of dismantling a coal-powered plant every week, what is the net effect on the climate? Zero. It's net effect on technology and industry would be a way to dismantle the Western technology infrastructure and ship it over to China. Democrats are concerned about outsourcing and that is outsourcing, that's outsourcing cubed. It makes no sense. So Markey talks about aspirational goals. His objections—Democrat objections are theological as if somehow if we act in an act of penance for our advanced technology and we reduce and constrict our economies as a result it's going to solve the problem. The way to do it is we get India and China involved, to get it out of U.N. where the process is today, and to get a system in which all of the countries are cooperating, that would actually have an effect.

ANGLE: Now what about.

MORT KONDRACKE, ROLL CALL: That would have been a terrific idea in 2001, so the administration comes in and it rejects the Kyoto agreement.
ANGLE: Well, wait, wait, wait, wait, wait.

KONDRACKE: But it won't—but let me continue.

ANGLE: All right, all right.

KONDRACKE: Rejects the Kyoto agreement, fine, you know, we should have rejected the Kyoto agreement, it was never going to be ratified, but immediately the Bush administration should have done something like what the president proposed yesterday, get the polluting countries together, study this problem, decide what we're going to do, take the lead, — instead we've dribbling like—they still don't know whether global warming is as serious a problem. Now the president says it is, we take this problem very seriously, yet the head of NASA is quoted—the other day as saying.
ANGLE: How much importance do you give the comments of the president of NASA on administration policy?

KONDRACKE: Well, I think he was following the administration policy. I think was not—he thought that he was following the administration policy, but he was behind the curb. I mean, this administration has been—has just let the rest of the world go running off in the direction of mandatory caps, whether that's a good policy or it's not a good policy, and it's been—it's floated and as a result we are the laughing-stock of the world.

ANGLE: We should clarify one thing on Kyoto, which was negotiated during the Clinton administration, and he brought it back and was prepared to send it to the Senate and the voted 95-0 to tell him, do not send this treaty to us because it will not be ratified.

KRAUTHAMMER: Because it left out India and China.

ANGLE: Because of precisely these issues. Right.
Now Fred, what of the interesting things about the European proposal is it would cut by 2050, it would cut everybody's emissions by 50 percent below 1990 levels, which was the year used in Kyoto. Now, according to some studies we are, the U.S., is 18 percent above 1990 now, we would have to cut 50 percent below the 1990 levels. What kind of impact would that have on the economy?

BARNES: Well, probably not that much because those goals would never be reached. I mean, that's really pie in the sky, it's ridiculous. You know, and I notice that Ed Markey said this is a" red hot issue," "red hot" have to act right away. Well we know—look, there's only one thing that we know for sure and that is that the temperature has increased one degree over the last century. One degree. Now, that to me doesn't make it a red hot issue and we know, although Mort will, who believes in this fad, will tell you that there's a scientific consensus.

KONDRACKE: There is.

BARNES: There is, no, Mort you've been in Tibet for three weeks, believe me, everyday you were gone some new scientist came out and said he didn't believe in the extravagant tales that are told by people like Al Gore. Al Gore—remember the difference between Al Gore and the Intergovernmental Panel on Climate Change of the United Nations, Al Gore says that over the next century sea level rises 20 feet. This panel on climate change says well maybe 17-23-inches, which I think we can live—look, we don't know whether humans are causing this—we don't even know whether global warming's bad. Me, I like warmer weather.

ANGLE: OK, got to stop here. Mort, that will teach you to leave town.

(LAUGHTER)
See what happens when you go? When we come back, former Dick Cheney aide, Scooter Libby is sentenced next week, but critics say that the prosecutor is trying to get him a lengthy prison sentence for a crime he wasn't charged with. The FOX all-stars will give their two cent, maybe four cents on that, after the break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

PATRICK FITZGERALD, SPECIAL PROSECUTORS: The trial evidence, the judge made a ruling that we were not going to try the case about whether the information was classified and I can tell you on the face of the indictment it states that her relationship with the CIA was classified and I have 100 percent confidence in that information, and we would not plead it in an indictment.

(END VIDEO CLIP)

ANGLE: Now, that's the Prosecution Patrick Fitzgerald talking on the day that Scooter Libby was convicted. And the argument here, gentlemen, now is about the sentencing, which will happen early next week, Prosecutor Patrick Fitzgerald wants Libby to serve up to three years behind bars for prudery, sentencing recommendation was about for half of that and Libby's lawyers argue that he shouldn't serve any time at all. The issue here, Charles, seems to be that Fitzgerald is reintroducing saying that this is a serious crime and reintroducing the notion that he unveiled the classified status of an undercover agent.

KRAUTHAMMER: What he's trying to do is to get a serious and severe punishment, the three years, that would be commensurate with a serious crime, i.e. the outing of a known CIA, secret agent. The problem is that's not what he got a conviction on in the Libby case, he never even charged him with outing the CIA agent. He never charged anybody with outing a CIA agent and he never demonstrated that any unlawful outing had occurred in the first place. And, in fact, he knew from the beginning that the so-called "outing" that happened innocently, done by Richard Armitage, a man who was never an enemy of Wilson or his wife, if anything he was an enemy of the Iraq policy. So, he knew that there was no underlying crime, he creates a trap in which he gets a perjury conviction and now he wants the series of punishment applied, that would apply to a crime that he never charged.

KONDRACKE: Right, look, Scooter Libby was convicted of perjury and making misstatements to a federal officer. The judge, presumably, can sentence him to the max for that if he wants to do it, perjury is a serious crime. But 30 months is, as I understand it, the penalty for, as Charles says, revealing the name of a secret agent which shouldn't apply here. I mean, the judge should sentence him for what he was convicted of, not for something that he wasn't convicted of.

BARNES: I think that this is another argument against ever having a special prosecutor. They're not answerable to anyone, and there's such pressure on them when they're brought in, because it usually is in well publicized cases, to come up with some big convictions. He couldn't do it in this case because there was obviously no violation of the law in the leaking of Valerie Plame's name and, of course, he learned right away who had done it and that there was no White House conspiracy and so on. I think that he's trying to make up for not having much of a case, merely a perjury case, by having a big sentence. And I just hope we have no more special prosecutor. Republicans, Democrats, all of us should agree on that.

ANGLE: One thing that we learned today is that Valerie Plame Wilson is suing the CIA over the book she's written, her memoirs, because the CIA doesn't want her to talk about things that are classified that involve her exploits or whatever over the years. One would think that of all people she might be sensitive to the idea of classified information.

KRAUTHAMMER: I'm not sure that sensitivity is a word you want to apply to her or to her husband. They have turned this into a circus and a lucrative one. She got over a million for her book, publicity, attention and a new life and career and the cover of Vanity Fair, that's quite a victory.

ANGLE: All right, that's it for the panel, but stay tuned to find out about a new condition afflicting one of every three women Democrats across the country.

(COMMERCIAL BREAK)

ANGLE: Finally tonight, Hillary Clinton is offering new hope to American women that one of their own might be elected to the highest office in the land. Or is she?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You're a liberal Democrat, a committed feminist, and you know that America is ready for a woman president. But you're not sure that Hillary Clinton is that woman. You're anxious, conflicted. Maybe you're having trouble sleeping, or you're experiencing mood swings. You want a woman to be president so badly that even Rosie O'Donnell is starting to make sense. If these symptoms sound familiar, you could be suffering from HAS: Hillary Ambivalence Syndrome, an anxiety disorder that affects up to one in three Democrats, which is why we developed OxyClinton.

ANNOUNCER: If thur enthusiasm for Hillary Clinton lasts more than four hours, consult your physician. OxyClinton.

(END VIDEO CLIP)

ANGLE: OK, that's it for SPECIAL REPORT, but stay tuned for more news—fair and balance, as always.

Watch "Special Report With Brit Hume" weeknights at 6 p.m. EST.

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