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FACE THE NATION

Sunday, September 3, 2006

GUESTS: Chairman, Democratic National Convention

Senator MITCH McCONNELL (R-KY) Assistant Majority Leader

KAREN TUMULTY National Political Reporter, Time magazine

DOYLE McMANUS Washington Bureau Chief, Los Angeles Times

MODERATOR: RUSS MITCHELL - CBS News

This is a rush transcript provided for the information and convenience of the press. Accuracy is not guaranteed. In case of doubt, please check with

FACE THE NATION - CBS NEWS 202-457-4481

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RUSS MITCHELL, host:

Today on FACE THE NATION, just weeks to go before the vital midterm elections, and both parties are revving up their campaign machines. With many Senate and House races too close to call, can the Democrats capitalize on discontent with the war in Iraq, and retake control of Congress? Will Republicans convince voters to this time around? And will individual races reflect national sentiment? We'll ask Howard Dean, chairman of the Democratic National Committee, and Senate Majority Whip Mitch McConnell of Kentucky.

Plus, Congress returns to Washington to wrap up unfinished business, with controversial issues high on the agenda. We'll get perspective from Karen Tumulty of Time magazine, and Doyle McManus, Washington bureau chief of The Los Angeles Times.

But first, the 2006 midterm elections on FACE THE NATION.

Announcer: FACE THE NATION with chief Washington correspondent . And now from Washington, substituting for Bob Schieffer, CBS News correspondent Russ Mitchell.

MITCHELL: And good morning, and welcome again to the broadcast. Bob is off this morning.

Joining us now from Burlington, , Democratic Party chairman Howard Dean, and with us from Louisville, Kentucky, Senate Majority Whip Mitch McConnell. Going to begin first with Governor Dean.

Governor, good morning to you.

Mr. HOWARD DEAN (Chairman, Democratic National Committee): Russ, thanks for having me on.

MITCHELL: Since September 11th, 2001, the Republican election playbook has pretty much been, `Take the national security issue and hammer Democrats with it.' It worked in 2002, it worked in 2004 against all odds. What makes you think that things are going to be different this time around?

Mr. DEAN: Because the truth is that the Republicans look increasingly incompetent in defending our nation. Five years in to the Bush presidency and a Republican majority, we see Iran is about to get nuclear weapons, North Korea not only has them, but is expanding the number of nuclear weapons, Osama bin Laden is still at large. And I think the American people realize that Iraq was a war of choice, and that the real war is the . The Democrats want a new direction in our defense policy. We want to fight the war on terror. That means capturing or killing Osama bin Laden, focusing on the terrorists in northwest Pakistan. And we don't think that the is the right way to fight the war on terror, because it simply was--has nothing to do with the war on terror.

MITCHELL: Governor, Republicans say the Democrats are quick to criticize, but

BURRELLE'S INFORMATION SERVICES / (202)419-1859 / (800)456-2877 Face the Nation (CBS News) - Sunday, September 3, 2006 2 thus far they've had no plan of their own, no specific plan as to how to fight the war on terror, how to end the war in Iraq. Will you announce...

Mr. DEAN: That's actually...

MITCHELL: Will you announce a specific plan before Election Day?

Mr. DEAN: That's actually completely untrue, and I think you can ask Senator McConnell, who voted against a Democratic proposal to increase money for first responders so they can synchronize their radio, voted against the proposal--with many of the other Republicans--for more port security, more aviation security, more rail security. In many ways, the Republicans have turned down the suggestions that the Democrats have for improving our ability to defend our homeland, and we think it's time for a new direction.

MITCHELL: When you see what happened with Senator in Connecticut, a moderate Democrat who lost the Democratic Party nomination there, do you see moderate Republicans have--or Democrats, rather, having a rough time over this Iraq issue?

Mr. DEAN: I think anybody who's supporting President Bush's policy's going to have a rough time, and that includes an awful lot of Republicans. You see them scrambling to get away from the idea that--I think somebody this morning said that--a leading Republican said that Rumsfeld should resign; Chris Shays has said that we ought to have a timetable to get out of Iraq. Republicans are leaving a sinking ship, and the sinking ship is the Republican approach to the war in Iraq, and to the war on terror.

MITCHELL: Well, do you think Secretary Rumsfeld should resign?

Mr. DEAN: Of course I think he should resign. He's fundamentally incompetent, and he's also not very smart politically. Sixty percent of the American people believe the war in Iraq was a mistake. Secretary Rumsfeld and Vice President Cheney have gone on television saying people who disagree with the president are essentially like Nazi appeasers. You know, when you start attacking voters out of your frustration, that is not a good thing for winning elections, and I think that's one of the reasons the Republicans are in trouble. We need a new direction. Staying the course for a failed strategy is not a good direction.

MITCHELL: In your mind, do you want Rumsfeld to stay in there? In the Democrats' mind, does he have a target on his back? Is he going to be a whipping boy for the Democrats this time around?

Mr. DEAN: What we want is a new direction for this country, and not just a new direction in the war on terror. I think what we haven't talked is about the Republicans' war on the American family. We've seen real wages go down $2300 since the president's been in office. Every year a million new American--middle class Americans lose their health insurance. The Republican majority has reduced Pell Grants and made it harder for middle class kids to go to college. We need a new direction, both at home and in defending

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America.

MITCHELL: In your mind, what is the biggest hurdle the Democratic candidates are going to have to overcome this election?

Mr. DEAN: I think, you know, the Republicans have a good machine. They know--they may not know how to govern, but they do know how to win elections. For a long time we were not fighting back. Now we are. We know what we want, but we've got a lot of work to do. We've got great candidates, but we've got a lot of work to do. We have--you know, we're a little rusty at winning elections.

MITCHELL: Your party needs 15 seats to gain control of the House. When you look at the landscape right now, how realistic is that?

Mr. DEAN: I think it's very realistic because we're going to win in places like Indiana, we're going to win in places like Arizona where we've got a couple of seats across the board. And of course, the Northeast, everybody talks about, but there's some real potentials for winning all across the country.

MITCHELL: Let's talk about the Senate now. You need six seats in the Senate to gain control of that. When you look at that, how optimistic are you?

Mr. DEAN: Well, again, I'm optimistic. It's going to be a tough fight. You know, the--you know, the Republicans are a worthy opponent. When it comes to elections, they know what they're doing. They've been working on this for 30 years. We need to bring our party back into the fray, and I think we are. We've raised a lot of money. We've put in a good field organization. We've got terrific candidates--better, than I--better, I think, than the Republicans. And they're in trouble because they've got the culture of corruption they have to contend with in Montana. I think Senator Burns has taken an enormous amount of money from Jack Abramoff and his folks. But this is a tough race, make no mistake about it. These races are going down to the wire.

MITCHELL: Now, when you look at these races across the country, are Democratic candidates going to be able to win, in your mind, on individual or local issues, or are these national issues going to be in large part at play?

Mr. DEAN: This is going to be like 1994. People want a new direction. Sixty-seven percent of the people in this country think we need a change. So this is a national election and it's a referendum on the Republican rule. The Republicans control the House, the Senate and the White House and I think people want a different direction, and we want a different direction. We want real change in this country.

MITCHELL: The fifth anniversary of the World Trade Center attacks is coming up next week. Republicans are expected to pass several bills in Congress commemorating that and other activities will take place as well. How do the Democrats combat this...

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Mr. DEAN: Well, again...

MITCHELL: ...in terms of the Republicans coming out and saying, `Look at what we've done for national security? There has been no major attack on US soil in five years.'

Mr. DEAN: America is a much more dangerous place since 9/11--excuse me, the world is a much more dangerous place, and America is in danger. The fact of the matter is, the Republicans have refused to fund adequate port security, they've refused to fund adequate first response security. Our nuclear plants and our petroleum and chemical plants are still not safe. And things are going badly for us around the world. Our troops deserve better than this. If the Republicans would listen to the military before we go on these adventures, rather than afterwards, then we would have a better shot. But the truth is, Iran poses a greater danger, North Korea poses a greater danger, and the president has done very little about these things. And I think that's going to be an issue. I think security's an issue that now finally works for the Democrats. They've been there for five years, these Republicans, and the question is, are we safer now? And the answer is no.

MITCHELL: Let's talk about the economy. Even though there's a lot of anecdotal evidence out there that the economy is doing poorly, the numbers seem to indicate that the economy is doing much better. How do Democratic candidates fight that?

Mr. DEAN: Well, again, most--80 percent--for 80 percent of Americans, the economy is not doing better. Now the fact is it's harder to send your kid to college. We don't have a health care system in this country that covers everybody like 36 other countries in the world do. Our average wages have gone down for the last five years. So for ordinary Americans, they're suffering for this. They see the Republicans giving away money to the oil companies and HMOs in the middle of the night, these huge tax breaks, but they don't see anything for them. They see their lives getting harder. People know the Democrats are better on education, on Social Security, on pension security, on health care. I think the big battle here is not to convince Americans that we're going to set new direction in those areas, they know that. The big battle is going to be will the Democrats set a new direction in security? And the issue is, yes, we will.

MITCHELL: Mr. Dean, I know you've been very busy. Let me ask you very quickly, in the next few months, how busy are you going to be? What's job number one for you?

Mr. DEAN: Oh, job number one for me is go all over the country, trying to raise a little money and get our troops in order, not just in the states that I know we're going to do well like Connecticut and Pennsylvania, but in states that we haven't done well in the past and we're going to do well in the future, Montana; Colorado, where I expect to win the governor's office; Arizona where--and Tennessee where we can pick up Senate seats.

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MITCHELL: Hmm.

Mr. DEAN: These are a lot of states that have trended Republican in the past and I think that's going to change.

MITCHELL: Democratic Party Chairman Howard Dean. Thank you so much for joining us today. We appreciate it.

Mr. DEAN: Thanks for having me on, Russ.

MITCHELL: Let's go now to Senator Mitch McConnell.

Senator, good morning to you.

Senator MITCH McCONNELL (Republican, Kentucky; Assistant Majority Leader): Good morning, Russ.

MITCHELL: Let me bring an AP/Ipsos poll into play here. It says one third of Americans think in the war on terror, the terrorists are winning. Given the fact that the national security issue has played so well for Republican candidates in the past, are you worried at all about sentiments like that?

Sen. McCONNELL: Well, I think it is important to remind the American people that if the Dean Democrats were in charge, Saddam would still be in power, murdering his own people like he used to, it would be more difficult to engage in terrorist surveillance, and the prisoners down at Guantanamo would be treated better than American soldiers in the court system.

This election, Russ, is going to be a choice, not a referendum. And people need to remember what Democrats do when they're in the majority. You just saw the rather angry face of Howard Dean. That's what they do when they're in charge.

MITCHELL: Senator McConnell...

Sen. McCONNELL: They'll wave the white flag in the war on terror. And you know, General Abizaid had it right, Russ, if I could just elaborate one more moment.

MITCHELL: Sure.

Sen. McCONNELL: General Abizaid had it correct. If we in Iraq, they'll follow us here. And we need to remind the American people that the terrorists were at war with us before 9/11. They attacked the World Trade Center, they blew up our Embassies in--in East Africa, they knocked a big hole out of the USS Cole. It's only been since we went to war with them after 9/11 that we haven't been attacked here at home.

MITCHELL: Senator McCONNELL, let me ask you this. Howard Dean just said the Democrats have, in fact, offered a plan to fight the war on terror. Do you agree with that?

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Sen. McCONNELL: I haven't seen it. Their plan is to leave. They're having a big debate among themselves, sort of the McGovern wing, represented by Howard Dean and his group, that beat Joe Lieberman in the primary up in Connecticut, and the more reasonable people who understand that if you cut and run in Iraq, the terrorists will soon be back here, like they were on 9/11.

MITCHELL: Let me go back to those poll numbers there. A lot of Americans unhappy with the way things are going with the war on terror and the war in Iraq. How do you keep Republicans, unhappy with the Bush administration on these matters, in the fold?

Sen. McCONNELL: Actually, I've been out around the country over the last month and I'm very optimistic that we're going to do well in the Senate, hold the Senate in our fall elections. And what Howard Dean didn't mention to you is how many Democrats are in trouble. The Democratic incumbent in the state of Washington is in a tight, hotly-contested race. The Democratic open seat in Minnesota is a tight race. We have a chance, an excellent chance, in Maryland, another Democratic open seat, not to mention New Jersey and maybe even Nebraska. So we're not only going to protect our incumbents, we're going to win a lot of seats, potentially, that the Democrats currently have. So it's very, very competitive out there.

MITCHELL: Well, what do you think Republican candidates should focus on this election?

Sen. McCONNELL: Look, these are local races. There is no national race this year. They're local races in each state between a Republican and a Democrat. And I think it's important in each of those races for our candidates to remind the voters in those states what Democrats do when they're in power. What they'll do is cut and run in Iraq, they'll raise our taxes, we know that, and they'll try to impeach the president. That's their agenda. They won't tell the voters that before the election, so we need to make sure the voters understand that so that they have a clear understanding of what the choice is this fall in these Senate and House elections.

MITCHELL: Howard Dean brought up Secretary Rumsfeld's comments this week, and there are members of your own party who called them "over the top" and "unhelpful." What did you think about them?

Sen. McCONNELL: I thought his speech was superb. I think Secretary Rumsfeld's done an excellent job. He'll be remembered as one of the great secretaries of defense. We've liberated Afghanistan and Iraq. By staying on offense, we've protected America here at home. Look, it's a--it's a tough slog, you know. Has everything gone perfectly in Iraq? No. But did everything go perfectly in any war? Of course not.

But the main thing to remember is that we went on offense after 9/11 in order to protect Americans here at home. That policy has been a 100 percent success.

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MITCHELL: You also heard Howard Dean say the national security issue is not going to work for you this time. Why do you think it will?

Sen. McCONNELL: I think national security is the central issue of our time. And as the president pointed out this week, this battle against Islamic fundamentalists is the central issue of the 21st century. How we deal with that will depend upon whether we can protect our way of life here at home. So far, since 9/11--and we'll be commemorating the fifth anniversary here very shortly--America has been secure here at home as a result of our policies of being on offense, as well as strengthening our defense here at home.

MITCHELL: Going back to an issue we just talked about. The Republican--members of the Republican Party, in the--in the past, have said things like those who question the administration's Iraq policy are unpatriotic. Yet again, the polls show that many Americans are unhappy with the way the war is going. In--in your mind, Senator, are all these people who are opposed to the way the administration is handling the policy unpatriotic?

Sen. McCONNELL: I notice you didn't attach a name to that. I'm unaware of any Republican who's said critics of the war are unpatriotic. They have every right to criticize the war. What we're saying is not that they're unpatriotic, but that they are wrong. And it's demonstrable that we haven't been attacked again here in the last five years. I hope the American people don't believe that's an accident, some quirk--some quirk of fate. It's been because we've been on offense, going after the terrorists where they are, and fighting in places like Baghdad so we don't have them in places like Washington and New York.

MITCHELL: Do you think your party has made any mistakes since 2004 when it comes to reaching out to voters?

Sen. McCONNELL: Look, I think the Democrats will point out what they think the mistakes are. What we're going to do is point out what we think we've done correctly. The economy's in good shape, the unemployment in America is lower now than it was a decade of the '60s, the decade of the '70s, the decade of the '80s, the decade of the '90s. We've created 5.7 million new jobs in the last three years. That's more than Japan and all the European Union combined. Look, this administration's been extremely successful, and we're going to have to remind people in this fall election of what we've done and what they would do if they were in the majority.

MITCHELL: You of course are the Senate Majority Whip, and when Congress reconvenes in a few days you'll have only a few real legislative weeks to get things done. A lot of things still on the table. In your mind, what's the first thing you have to do when you get back to work?

Sen. McCONNELL: Well, we're going to deal with national security. We have to deal with the terrorism surveillance issue, to deal with the Supreme Court decision related to the treatment of detainees. We have to pass the Department of Defense appropriations bill and the Homeland Security bill. So we'll be dealing with national security throughout September. And then, of

BURRELLE'S INFORMATION SERVICES / (202)419-1859 / (800)456-2877 Face the Nation (CBS News) - Sunday, September 3, 2006 8 course, we'll be back in later in the year to finish up our business for this year.

MITCHELL: Do you think minimum wage will come up again?

Sen. McCONNELL: Well, the Democrats had a chance to increase the minimum wage just a month ago. Every Republican, I think maybe with one exception, voted for a package that would have included the Kennedy minimum wage increase. They wouldn't take yes for an answer. So I don't know whether that vote'll come up again or not. It quite possibly could.

MITCHELL: Senator Arlen Specter of Pennsylvania says he will bring up the issue of embryonic stem cell research again. Is this an issue, senator, you think will come before the Senate this time around?

Sen. McCONNELL: I'm sure it'll come up again in the future. I don't think it'll come up in September. We're going to deal primarily with national security issues in September.

MITCHELL: I see, though, this week the first thing on the agenda in Congress is a horse-slaughtering bill. Some people look at that and they say, you know, `What's going on? Why not get down to the real nitty-gritty right away?'

Sen. McCONNELL: Well, the Senate agenda does not include that. The Senate agenda is going to be entirely about national security.

MITCHELL: Is immigration reform too divisive for the party right now?

Sen. McCONNELL: I would prefer to do a comprehensive bill and I would prefer to do it soon. But it's a very complicated bill. What we are doing in the meantime, whether or not we pass the comprehensive immigration reform bill, is we are ramping up border security through the appropriations process. Fences are being built. Border security guards, additional ones, in significant numbers are being hired. The National Guard is down there as a backup. There's some evidence that it's having an impact on the influx of illegals across the border and we're going to try to get that job done regardless of whether we're able to achieve a comprehensive immigration reform bill.

MITCHELL: Senator Mitch McConnell, thank you so much for joining us. Really appreciate it.

Sen. McCONNELL: Thank you, Russ.

MITCHELL: You take care, sir.

We're coming back with our roundtable discussion. Don't go away.

(Announcements)

MITCHELL: And we are back now with Karen Tumulty of Time magazine and Doyle

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McManus at the Los Angeles Times.

Good morning to both of you.

Mr. DOYLE McMANUS (Washington Bureau Chief, Los Angeles Times): Good morning.

Ms. KAREN TUMULTY (National Political Correspondent, Time Magazine): Good morning, Russ.

MITCHELL: Karen, let me begin with you. You just heard these two guys speak to us. Anything stand out in your mind when it comes to the 2006 midterm elections, did they say?

Ms. TUMULTY: Well, the single-minded focus on national security that we were hearing Mitch McConnell talk about is something that in some ways the Republicans are having to do out of necessity. It's a game plan that has worked for them, as you said, in the last two elections. But there are a lot of Republicans that I've talked to, and particularly in places like Ohio and Pennsylvania, where so many of these key races are going to be fought, who really believe that their party also has to do something to address some of the domestic concerns that people have. So, you know, his suggestion that they will not revisit minimum wage was a, you know, is something a lot of Republicans would like to see them come back to some of these bills as well.

MITCHELL: Doyle, Howard Dean says that he thinks it's going to be different this time, the national security issue is not going to work for Republicans. Do you agree with it?

Mr. McMANUS: And he's going to try and make it work for Democrats. The answer is this is going to be a great test of whether Democrats can reverse the momentum on that issue. If you listened to the way the two of them were trying to frame that issue, you saw a classic example of two parties trying to describe the same issue in different terms. Howard Dean kept saying, `Incompetent, failure, it's not working.' Mitch McConnell, picking up the Republican themes, was saying, `Well, the Democrats want to cut and run, they don't really care about national security.'

The voters have been drifting over the last two years toward the Democrats on this. To some degree what we're also seeing is an attempt by both sides to mobilize the base. Look, this is a midterm congressional election, there's no presidential candidate at the top of the ticket, so turnout is usually low, and you can win this if you can boost your voters. What that--what you're seeing here, whoever has the maddest voters gets more of them to the polls, and they're going to win. You're going to see a whole lot of negative campaigning, because the whole idea is to get Democrats madder at Republicans and Republicans madder at Democrats.

MITCHELL: Well, the Bush administration went on the attack this week and some are saying they're demonizing those who are against the war. Doyle, is that an effective strategy? Could that be an effective strategy?

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Mr. McMANUS: It can sure be an effective strategy at getting those Republicans to the polls. Look, when you talk to Republican professionals in this race, the numbers they worry about most are the ones that show loyal Republicans drifting toward indifference, no longer caring enough to get up and contribute the money, put the lawn sign out, or maybe go to the polls. So they've got to go back to that tried-and-true theme to get their voters to get up and vote.

MITCHELL: Karen, what do you think?

Ms. TUMULTY: That you run a big risk there of alienating voters in the center. Swing voters, the kinds of people who do have misgivings about the war. And that's why, for instance, the big event this week, which was Don Rumsfeld's speech suggesting that people who are against the war are appeasers, has drawn such strong reaction not only from Democrats but includes some Republicans. Tom Kean Jr., the Republican candidate for governor in New Jersey, one of those races that Mitch McConnell cited as one of their brightest prospects, has now come out in favor of removing Don Rumsfeld since that speech.

MITCHELL: Let's talk about the legislative session which kicks up again this week. Karen, what do you think? We talked about a number of issues that are still on the table. Do you think Congress is going to take any of these up at all?

Ms. TUMULTY: I think at this point the Republicans are running both houses, and they are very intent on this strategy of talking about national security almost exclusively and talking about things like revisiting this domestic surveillance program and some of the other issues that Mitch McConnell suggested. So I think that if there are any achievements at all, any votes, this is where you're going to see them.

MITCHELL: So, Doyle, no minimum wage, no immigration, nothing like that you think will come at this time?

Mr. McMANUS: And you're not going to get a Medicare drug fix, either. These are--these are--these are--those are tough, complicated issues to do. To me, the fascinating one is immigration. That was the issue that had us captivated in the spring.

MITCHELL: (Unintelligible)

Mr. McMANUS: Actually, Republicans are quite happy not to--not to have a debate on that, because that's a debate that splits Republican--the Republican Party. So they want that as a talking point, but they don't need to get to a bill before the election.

MITCHELL: You mentioned Donald Rumsfeld earlier. Does he have a big target on his back? Are the Democrats aiming for him? Is he the whipping boy for the Democrats this time around?

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Ms. TUMULTY: Well, they want to bring up a resolution as soon as they can, and they haven't quite figured out how to do this parliamentarily to--a vote of no confidence in Don Rumsfeld. Because in some ways, it's easier for them to attack him than it is to attack the president.

Mr. McMANUS: But good luck in getting that to the floor. This isn't the British parliament, where you can get a vote of no confidence.

MITCHELL: You mentioned earlier some of the other issues that could come up, that you'd like to see you come up this session.

Mr. McMANUS: Well, you know, as you say, budget, spending bills are sitting there, that we don't have a national budget that Mitch McConnell mentioned. There will be a defense spending bill, because that fits into the national security theme. President Bush is talking about maybe a new energy policy. They're not going to have time to do anything on energy. So you're going to hear a lot of talk about domestic issues, but you're going to see very little real final legislative action.

MITCHELL: Karen, Doyle says it could get pretty nasty this time around. You agree?

Ms. TUMULTY: It's guaranteed. And one thing, one big question mark is how the Republicans use their financial advantage, and that is likely to come into a lot of negative ads at the end of the campaign.

MITCHELL: Karen Tumulty and Doyle McManus, thank you both. We appreciate it.

We'll be back in just a moment.

(Announcements)

MITCHELL: And that's our broadcast. Bob Schieffer is coming back next week. I'll see you later tonight on the "CBS Evening News." Thanks for watching FACE THE NATION.

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