PBS NewsHour; July 1, 2010 7:00pm-8:00pm EDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Brown: GOOD EVENING. I'M JEFFREY BROWN. TROPICAL STORM ALEX CONTINUED TO HALT SOME OIL CLEANUP OPERATIONS. AND ONE ESTIMATE SHOWED THE SPILL IS NOW THE LARGEST EVER IN THE GULF OF MEXICO.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE "NEWSHOUR" TONIGHT: A HUGE, NEW OIL-SKIMMING SHIP ARRIVED IN THE REGION TODAY. WE UPDATE THE CONTAINMENT EFFORTS AND HAVE EXCERPTS FROM OUR LIVE STREAM EVENT IN HOUSTON, WHERE RAY SUAREZ POSED YOUR QUESTIONS TO B.P. EXECUTIVE BOB DUDLEY.

>> Brown: THEN, WE LOOK AT THE POLITICS OF IMMIGRATION REFORM, AS PRESIDENT OBAMA CALLED ON CONGRESS TO MOVE FORWARD WITH LEGISLATION.

>> Woodruff: MARGARET WARNER REPORTS ON BRAZIL'S BOOMING ULTRA DEEPWATER OIL EXPLORATION.

>> AS THE U.S. FIGHTS TO PACIFY THE B.P. GUSHER IN THE GULF, THE P51-- OWNED BY BRAZILS NATIONAL P51-- OWNED BY BRAZIL'S NATIONAL OIL COMPANY, PETROBRAS-- IS PUMPING 24/7 FROM SIMILAR DEPTHS BELOW THE SEA. ITS THE NEWEST PLATFORM IN

>> Brown: PAUL SOLMAN TALKS TO GREEK PRIME MINISTER GEORGE PAPANDREOU ABOUT THE VIOLENCE IN THE STREETS AND THE TURMOIL ON THE FINANCIAL MARKETS, AS GREECE FALLS FURTHER INTO DEBT.

>> Woodruff: AND, WE CLOSE WITH A PROFILE OF THE NEXT POET LAUREATE OF THE U.S., W.S. MERWIN.

>> AS SOON AS I COULD MOVE A STUB OF PENCIL AND PUT WORDS ON PAPER, I WANTED TO BE A MOAT. I MEAN, I WAS FASCINATED BY THE POEMS MY MOTHER HAD READ TO ME AND BY THE HYMNS THAT WE SANG IN CHURCH.

>> Brown: THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: AND BY THE ALFRED P. SLOAN FOUNDATION. SUPPORTING SCIENCE, TECHNOLOGY, AND IMPROVED ECONOMIC PERFORMANCE AND FINANCIAL LITERACY IN THE 21ST CENTURY. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Brown: HURRICANE ALEX WAS MOSTLY HISTORY TODAY, BUT ITS AFTER-EFFECTS KEPT OIL SPILL CLEANUP CREWS IN PORT ONCE AGAIN. AS THEY WAITED TO GET BACK TO WORK, THE GUSHER IN THE GULF REACHED A NEW MILESTONE. WHITE CAPPED WAVES CONTINUED TO BUFFET THE TEXAS COAST TODAY, HOURS AFTER THE HURRICANE HIT. NORTHERN MEXICO GOT THE WORST OF THE STORM LAST NIGHT WITH TWO PEOPLE KILLED AND THE CITY OF MONTERREY LARGELY SHUT DOWN. HUNDREDS OF MILES TO THE EAST, THE GULF OF MEXICO WAS STILL TOO CHURNED UP TODAY FOR OIL SKIMMING BOATS OR BOOM-LAYING OPERATIONS. IN WASHINGTON, THE MAN OVERSEEING OPERATIONS-- THAD ALLEN-- SAID THEY'RE WAITING FOR THE ALL-CLEAR. HE SPOKE AT THE WHITE HOUSE, A DAY AFTER RETIRING AS A COAST GUARD ADMIRAL.

>> THE SMALL VESSELS THAT DO THE SKIMMING HAVE A DIFFICULT TIME OPERATING OUT THERE, WE HAD TO PULL THEM BACK, SAME WITH THE VESSELS OPERATING IN AND AROUND THE WELL SITE ITSELF. THE DRILLING RIGS WERE ABLE TO CONTINUE BUT WE ARE NOW MASSING OUR FORCES TO BE ABLE TO MOVE BACK OUT ONCE THE WEATHER WILL ALLOW US TO GET OUT ON THE WATER AND SKIM.

>> Brown: ALL INDICATIONS WERE, THE CREWS WILL HAVE TO WAIT A WHILE YET. HIGH WAVES AS FAR AWAY AS FLORIDA PUSHED OIL PAST PROTECTIVE BOOMS AND ON TO BEACHES. THE WEATHER DID NOT PREVENT A HUGE OIL SKIMMING SHIP DUBBED "A WHALE" FROM ARRIVING AT THE SPILL SITE TODAY. THE FORMER TANKER WAS ON ITS FIRST MISSION AFTER BEING RETROFITTED INTO THE WORLD'S LARGEST OIL SKIMMER. THE HOPE IS THAT IT WILL SOON GATHER 21 MILLION GALLONS OF OILY WATER A DAY.

>> THE OWNERS MADE AN OFFER TO BRING IT DOWN AT THEIR EXPENSE TO HAVE IT OPERATE IN THE GULF AREA TO SEE IF IT COULD BE EFFECTIVE. WE'VE WORKED WITH E.P.A. AND OTHER REGULATORY AGENCIES TO GIVE IT A GO, AND IT'S DOWN IN THE AREA, BE READY TO OPERATE IN A COUPLE OF DAYS.

>> Brown: AS IF TO UNDERSCORE THE NEED FOR GIANT SKIMMERS, NEW ESTIMATES TODAY PUT THE SPILL AS THE LARGEST EVER IN THE GULF OF MEXICO. BASED ON THE HIGH END OF GOVERNMENT FIGURES, MORE THAN 140 MILLION GALLONS OF CRUDE HAVE SPEWED INTO THE GULF, SINCE THE "DEEPWATER HORIZON" RIG EXPLODED AND SANK IN APRIL. THAT ECLIPSES A SPILL OFF THE MEXICAN COAST IN 1979 AND 1980. NOW, TO OUR EXCLUSIVE ONLINE AND ON-AIR FORUM BETWEEN B.P. AND THE AMERICAN PEOPLE ABOUT THE OIL SPILL. THE "NEWSHOUR" PARTNERED WITH GOOGLE AND YOUTUBE TODAY TO POSE QUESTIONS SUBMITTED ONLINE BY CITIZENS FROM AROUND THE COUNTRY. RAY SUAREZ POSED THE QUESTION TO B.P.'S BOB DUDLEY AT THE COMPANY'S HEADQUARTERS IN HOUSTON. HE'S THE PRESIDENT OF THE GULF COAST RESTORATION ORGANIZATION FOR THE COMPANY. HERE'S PART OF THAT EXCHANGE.

>> Suarez: WELL, WHEN WE PUT OUT THE CALL FOR QUESTIONS, YOU MIGHT HAVE GUESSED, WE GOT US THATS OF RESPONSES . THERE'S A LOT OF CURIOSITY ABOUT THE STATE OF PLAY IN THE GULF. WE GOT VIDEO, WE GOT TEXT. AND A LOT OF PEOPLE JUST CAME TO THE SITE TO BOLSTER CERTAIN QUESTIONS THAT THEY WANTED TO BE SURE WOULD BE ASKED. AND I'M SELECTING ONE THAT'S SORT OF REPRESENTATIVE FROM THE GULF. LET'S GO FIRST TO KIRK FROM HOUMA, LOUISIANA.

>> MR. DUDLEY, MY NAME IS KIRK, I'M A MEMBER OF THE UNITED HOUMA NATION WHICH IS THE STATE'S LARGEST INDIAN TRIBE IN THE STATE OF LOUISIANA. WE HAVE HEARD THAT YOU ARE GOING TO MAKE EVERYONE WHOLE. WE HAVE 6,000 FAMILIES IN THE UNITED HOUMA NATION THAT ARE NOW OUT OF WORK BECAUSE OF THIS SPILL. TODAY I WAS ON GRAND ISLE ON THE BEACH AND NORMALLY ON THE FOURTH OF JULY WEEK LIKE THIS WE WOULD HAVE A THOUSAND PEOPLE IN THE AREA THAT WE WERE. THERE WAS NOT A SINGLE PERSON ON THE BEACH TODAY. HOW ARE YOU GOING TO MAKE EVERYONE WHOLE AND AT WHAT POINT DO YOU CLOSE THE CHECKBOOK?

>> SO, KIRK, I WAS DOWN IN GRAND ISLE ABOUT TWO WEEKS AGO AND I SAW OIL ON THE BEACHES AND I SAW IT BEHIND GRAND TERRE ISLAND AND I SAW THE OIL IN THE MASHES WHERE THE PELICAN ROOKERIES WERE. I SEE THE DEVASTATION THAT'S DOWN THERE . WE'RE GOING TO MAKE GOOD ON THE CLAIMS FROM INDIVIDUALS AND BUSINESSES DOWN THERE. ANYONE WHO HAS BEEN IMPACTED LIKE YOU'VE SAID SHOULD GO TO THE CLAIMS OFFICES IMMEDIATELY, FILE THE CLAIM S. WE'LL JUST HAVE SOME DOCUMENTATION FOR IT. WE'RE WRITING THE CHECKS. WE'VE WRITTEN AS OF THIS MORNING $138 MILLION OF CHECKS. SO WE ARE GOING MAKE GOOD FOR IT. WE PUT ASIDE $20 BILLION IN AN ESCROW ACCOUNT THAT WILL BE USED TO PAY CLAIMS NOT ONLY JUST FOR NOW BUT FOR AS LONG AS THE IMPACT IS THERE ON YOUR BUSINESSES. AND THAT WILL BE NOT ONLY AFTER WE SHUT THE WELL OFF BUT THIS CLEANUP IS GOING TO TAKE SOME TIME. SO IT'S NOT A ONE-TIME CLAIM. IT'S CLAIMS THAT WILL GO THROUGH THE MONTHS WHERE YOUR BUSINESSES ARE IMPACT. WE ALSO REALIZE THERE'S A SEASON ALTY OF BUSINESS DOWN THERE. AND THE SUMMER IS WHERE... THAT'S WHERE A LOT OF THE EARNINGS COME FROM AND WE'RE GOING TO TAKE THAT INTO ACCOUNT AND TRY TO MAKE PEOPLE WHOLE. WE'RE THERE FOR THE LONG TERM. THERE'S NO ATTEMPT TO CAP. THIS WE HAVEN'T CAP IT HAD WELL YET. IN FACT, IT'S HARD TO TALK ABOUT A LIMIT TO CLAIMS CERTAINLY BEFORE WE CONTINUE TO HAVE THIS SPILL IN THE GULF.

>> Suarez: WE'LL GO BACK TO HOUMA, LOUISIANA, NOW TO MICHAEL.

>> MR. DUDLEY, MY NAME IS MICHAEL, I AM THE VICE PRINCIPAL CHIEF OF THE UNITED HOUMA NATION. I HAVE SEEN THE CLEANUP EFFORT IN A VARIETY OF OUR COMMUNITIES. I'VE BEEN DOWN TO THE END OF THE MOUTH OF MISSISSIPPI, I'VE BEEN IN PLACES LIKE BAY BAPTIST, I'VE BEEN ON THE BEACH AT PORT FOURCHON AND WHAT I'VE SEEN SO FAR IS A VERY DISORGANIZED CLEANUP EFFORT. I'VE SEEN MILES OF UNATTENDED BOOM. I'VE SEEN MILES OF BOOM WASHED UP ON THE BANK WITH NO ONE AROUND. I'VE SEEN POCKETS OF OIL IN THE MARSH WITH NO ONE THERE TO CLEAN IT UP. MY QUESTION IS HOW ARE YOU GOING TO MAKE THIS CLEANUP EFFORT MORE PRO ACTIVE? HOW ARE YOU GOING TO CHANGE THE DYNAMICS ON THE GROUND AND MAKE THIS EFFORT MORE EFFECTIVE?

>> I'D SAY TO MIKE THAT WILL THE CLEANUP EFFORT HAS NOT BEEN PERFECT. WE HAVE HAD TO RESPOND AND ALLOCATE RESOURCES FROM LOUISIANA ALL THE WAY ACROSS TO FLORIDA. AND WE'VE HAD TO DO THAT SOMETIMES VERY QUICKLY. THERE'S BEEN GAPS IN THE DEFENSES AND YOU ALMOST HAVE TO THINK ABOUT THIS AS AN INVASION OF OIL TO MAKE SURE THAT YOU'RE READY FOR IT. WE'VE HAD SOME DEVASTATING PICTURES, PARTICULARLY IN LOUISIANA, OF THE OIL THAT'S GOT INTO THE MARSHES, THE BEACHES ARE EASIER TO CLEAN, THE MARS, PARTICULARLY, ARE VERY SENSITIVE, THEY TAKE A LONG TIME. YOU FLUSH THEM. WE HAVE CREWS THROUGHOUT TO CLEAN BLADES OF GRASS. BUT IT'S SOMETHING YOU HAVE TO BE VERY, VERY CAREFUL ABOUT. WE SEE BOOM THAT GETS WASHED UP. IF IT'S OUT THERE, THE TIDES COME, THE STORM THAT WE'RE HAVING ACTUALLY TODAY WITH HURRICANE ALEX HAS RAISED HIGH LEVELS OF WAVES ALL ACROSS THE GULF. IT'S DISRUPTING THE BOOMS. WE'RE GOING TO HAVE TO GO BACK AND REPLACE THOSE BOOMS. WE'RE GOING TO BRING IN EVEN AIR SHIPS OR PWHREUFPS IN PARTS OF THE GULF SO THEY CAN DIRECT THE SHIPS. WE'RE LEARNING AS WE GO. IT HASN'T BEEN PERFECT OR YOU WOULDN'T SEE SIGHTS LIKE THAT. BUT THE EFFORT HAS REALLY DOUBLED IN THE LAST MONTH.

>> Suarez: YOU MENTIONED HURRICANE ALEX. LET'S TALK A LITTLE BIT MORE ABOUT THAT. BECAUSE JUST A FEW YARDS AWAY FROM WHERE WE'RE SITTING THERE'S A TORRENTIAL RAIN COMING DOWN. PART OF THE ARMS OF THIS STORM THAT CAME ASHORE LAST NIGHT. HOW DID IT AFFECT YOUR OPERATIONS AND HOW LONG WILL IT TAKE TO GET THINGS BACK TO WHERE THEY WERE BEFORE ALEX CAME INTO THE GULF?

>> IN TERMS OF THE STORM ITSELF, IT HAS SENT EIGHT TO 12-FOOT WAVES THAT HAVE COME UP FROM THE SOUTH EAST TO THE NORTHWEST RIGHT THROUGH THE AREA WHERE THE OPERATIONS ARE AND THE OIL . SO IT'S BROUGHT IN OIL, UNFORTUNATELY, FROM THE PANHANDLE OF FLORIDA TO LOUISIANA AT A HIGHER RATE THAN IT HAS BEEN OVER THE LAST FEW DAYS. THE WAVES DO NOT ALLOW US TO SKIM. THE BOOMS ARE INEFFECTIVE AND THE DISPERSANT CAN'T BE LAID DOWN. SO WE'RE WAITING UNTIL SATURDAY WHEN THE WAVES COME DOWN. AND WE'RE GOING TO BE READY TO BE BACK OUT ON THE WATER. CREWS HAVE BEEN WORKING IN THE EVENING AND AT NIGHT RIGHT NOW THROUGH THESE THREE DAYS TO CLEAN THE OIL ON THE BEACHES.

>> Suarez: AFTER YOUR BOSS TONY HAYWARD TESTIFIED TO CONGRESS, IT WAS ANNOUNCED THAT YOU WERE NOT IN CHARGE OF THE RESPONSE BY B.P. WHAT'S CHANGED? THERE'S THIS NEW ENTITY CALLED THE GULF COAST RESTORATION ORGANIZATION. DO YOU STILL REPORT TO TONY HAY STPWHARD WHO DO YOU WORK FOR?

>> WELL, I'M ON THE BOARD OF B.P. AND I DO RECORD TO TONY HAYWARD, THE C.E.O. OF B.P. THE ORIGINAL INTENT WAS TO SET THIS ORGANIZATION UP AFTER THE TIME THAT THE WELL WAS KILLED AND THEN WE WOULD SET UP A LONG-TERM RESTORATION ORGANIZATION. WHAT'S CHANGED IS AFTER THE MEETING AT THE WHITE HOUSE WHERE WE AGREED THAT WE WOULD SET UP THE ESCROW FUND, PUT THE ASSETS ASIDE, BEGOING MANAGE THE CLAIMS PROCESS OVER TO THE INDEPENDENT CLAIMS KEN FEINBERG. THOSE ACTIVITIES REQUIRED ALLOT OF ATTENTION. AND IF ANYTHING, EVERYONE SHOULD READ IT AS THIS ORGANIZATION IS A SIGNAL TO AMERICA THE LONG-TERM INTENT OF B.P. TO MAKE SURE IT MEETS ITS COMMITMENT FOR MANY YEARS. IT WILL PUT A LOT OF ATTENTION ON MAKING SURE THAT WE GET THE RESOURCES INTO THE UNIFIED COMMAND WITH THE COAST GUARD.

>> Suarez: LET'S GO BACK TO OUR ONLINE AUDIENCE. JEN WRITES FROM EUGENE, OREGON. WHY ARE B.P. STAFF GETS A HEADS-UP WHEN U.S. GOVERNMENT OFFICIALS ARE GOING TO SHOW UP? SO THAT B.P. CAN ROLL OUT ADDITIONAL CLEANUP WORKERS TO THE HARDEST-HIT AREAS ONLY TO REMOVE THEM WHEN THE OFFICIALS LEAVE? IS THAT HAPPENING?

>> NO, IT'S NOT. AND I SAW THAT REPORT ABOUT THE PRESIDENT'S VISIT. I ACTUALLY LOOKED INTO IT MYSELF AND SAYS WHAT WAS THE SCHEDULE? WE WORKED THROUGH... OF COURSE THERE'S 40,000 PEOPLE WORKING ON THE GULF COAST ON THE SPILL. THERE'S A LOT OF SUBCONTRACTORS THAT WORK FOR US AND THEIR CREWS AND MOVEMENTS AROUND ARE SET UP DAYS IN ADVANCE. I ACTUALLY CHECKED INTO THAT TO SEE IF THAT WAS SOMEHOW SOME TEMPORARY PIECE. IT WAS NOT. THE CREWS THAT WERE... WHEN THEY WERE SCHEDULED, THEY DIDN'T REALLY EVEN KNOW THAT THE PRESIDENT WAS COMING. HE CAME DOWN ON RELATIVELY SHORT NOTICE. IT MAY HAVE LOOKED LIKE THAT BECAUSE THEY DON'T WORK RIGHT UP UNTIL DARK. THERE IS A PERIOD OF TIME WHERE THE BEACH WORKERS WORK AND THEY LEFT LATER AFTER HE LEFT THAT DAY. BUT THERE'S NO ATTEMPT AT ALL TO MANIPULATE OR PUT A SHOW ON FOR PEOPLE. IF THERE WAS, I MEAN, WE'RE FAILING MISERABLY. WE HAVE LOTS OF PEOPLE THAT VISIT AND THEY SEE SOMETIME WHAT THERE'S THESE GAPS.

>> Suarez: LANE WRITES FROM SAN FRANCISCO, "HAVE ALL OF THE BLOWOUT PREVENTERS ASSOCIATED WITH B.P.'S OTHER DEEP WATER OPERATIONS BEEN TESTED SINCE THE BIG SPILL? DID THEY ALL PASS AND HOW REGULARLY WILL THEY BE TESTED IN THE FUTURE INTOER TO ENSURING THEIR FUNCTIONALITY WHEN THEY ABSOLUTELY IS TO WORK."

>> WELL, LANE IS RIGHT, THESE THINGS HAVE TO WORK. THIS IS THE LAST LINE OF DEFENSE AND THERE'S SEVEN DIFFERENT BARRIERS IN THIS. AND FOR WHATEVER REASON, THIS BLOWOUT PREVENTER FAILED. WE-- AND I IMAGINE, LIKE MANY IN THE INDUSTRY, BUT CERTAINLY B.P.-- WENT WORLDWIDE LOOKING AT ALL OF THE BLOWOUT PREVENTERS THAT WE HAD IN ACTIVITY AND WAY BEYOND THAT, LOOKED AT OUR PRODUCTION FACILITIES AND ALL KINDS OF SAFETY CONDITIONS AGAIN ON ALL OF OUR FACILITIES AROUND THE WORLD. I IMAGINE OTHER OIL COMPANIES WILL HAVE DONE THE SAME THING. THIS IS A VERY UNUSUAL INCIDENT, THIS BLOWOUT PREVENTER SYSTEM TO FAIL. IT'S ABOUT FOUR STORIES HIGH, 400 TONS. THE M.M.S., ALTHOUGH THEY'VE WIDELY BEEN CRITICIZED, THESE PIECES OF EQUIPMENT ARE TESTED EVERY 14 DAYS IN THE U.S. THIS IS A VERY TRAGIC AND YET NOT WELL UNDERSTOOD ACCIDENT.

>> Suarez: SONIA ASKS "GIVEN ALL THE INFORMATION ON THE TOXICITY OF THE COREXIT AND THE DIRECTIVES FROM THE ENVIRONMENTAL PROTECTION AGENCY AND THE UNITED STATES COAST GUARD, WHY IS IT STILL BEING USED?"

>> SO, THE COREXIT IS A DISPERSANT THAT'S APPROVED BY THE E.P.A.MENT IT'S BEEN USED FOR A LONG TIME IN THE GULF COAST. IT'S BEEN... I'VE BEEN TOLD THAT IT'S ONE OF THE COMMON DISPERSANTS THAT'S BEEN USED BY THE COAST GUARD FOR MORE THAN 20 YEARS IN THE GULF COAST. THING TO TOXICITY LEVEL S... MANY THINGS HAVE A TOXICITY LEVEL, INCLUDING DISH SOAP. SO THERE IS A TOXICITY LEVEL TO IT. IT'S NOT FAR OFF OF THE TOXICITY LEVELS OF DISH SOAP. AND THE LAB TESTS SHOW THAT. WHAT IT DOES IS IT TAKES THE OIL, BREAKS IT INTO VERY, VERY SMALL DROPLETS WHICH THEN INCREASE THE SURFACE AREA IN THE WARM WATERS, ALLOW THE BACTERIA TO DO ITS WORK AND EAT IT. AND IT... AND THAT'S WHAT IT'S DESIGNED TO DO. THAT'S WORKING. BUT SONIA'S CORRECT. NOWHERE IN THE WORLD HAVE WE EVER HAD THIS AMOUNT OF VOLUME FOR THIS PERIOD OF TIME BEING PUT IN THE WATER. SO IT'S AN UNKNOWN. WE DON'T KNOW.

>> Suarez: BOB DUDLEY IS THE PRESIDENT AND C.E.O. OF B.P.'S GULF COAST RESTORATION ORGANIZATION. HE'S JOINED US AT B.P. HEADQUARTERS IN HOUSTON. MR. DUDLEY, THANKS A LOT.

>> THANKS, RAY.

>> Woodruff: STILL TO COME ON THE "NEWSHOUR": A CALL FOR AN IMMIGRATION OVERHAUL; BRAZIL'S DEEPWATER OIL RIGS; GREECE'S ECONOMIC TROUBLES AND THE NEXT POET LAUREATE. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S HARI SREENIVASAN IN OUR NEWSROOM.

>> Sreenivasan: TWO SUICIDE BOMBERS KILLED AT LEAST 35 PEOPLE AND WOUNDED MORE THAN 175 IN LAHORE, PAKISTAN TODAY. THEY ATTACKED A POPULAR MUSLIM SHRINE, WHERE THOUSANDS OF PEOPLE WERE VISITING AT THE TIME. AMBULANCES CROWDED INTO THE AREA AFTER ONE BOMBER BLEW HIMSELF UP IN A LARGER UNDERGROUND ROOM. THE SECOND BOMBER STRUCK AS PEOPLE TRIED TO FLEE. THE U.S. HOUSE HAS VOTED TO RENEW JOBLESS BENEFITS FOR THE LONG-TERM UNEMPLOYED. THE BILL WOULD COST NEARLY $34 BILLION TO KEEP BENEFITS GOING THROUGH NOVEMBER. MOST DEMOCRATS SUPPORTED THE MEASURE AS URGENT AID TO THE UNEMPLOYED, WHILE MOST REPUBLICANS ARGUED AGAINST IT, CALLING IT MORE DEFICIT SPENDING.

>> IT'S NOT PAID FOR. THE AMERICAN PEOPLE WANT THESE POLICIES PAID FOR. THERE'S NO REASON WHY THIS COULDN'T COME TO THE FLOOR WITH THE OPPORTUNITY FOR US TO AMEND IT, TO HAVE A REAL DEBATE OVER THE MERITS OF SOME OF THESE AMENDMENTS ON HOW WE COULD PAY FOR THIS. IT'S JUST NOT RIGHT.

>> YOU HAVE A NERVE TO TELL THE UNEMPLOYED PEOPLE IN THIS COUNTRY THAT YOU MUST BE WANTING TO BE UNEMPLOYED. I'M SORRY WE CANNOT HELP YOU, BUT IF YOU'RE PART OF CORPORATE AMERICA AND YOU STUCK IT TO THE AMERICANS AND THE MIDDLE CLASS IN THIS COUNTRY AND THE POOR, THAT'S ALL RIGHT. WE'LL FIND A WAY TO BAIL YOU OUT. LET'S MAKE SENSE! LET'S BE FAIR!

>> Sreenivasan: IN THE SENATE, REPUBLICANS BLOCKED THE BENEFITS EXTENSION AGAIN LAST NIGHT. THAT DELAYED ANY FINAL ACTION UNTIL AFTER THE FOURTH OF JULY RECESS. IN THE MEANTIME, 1.7 MILLION AMERICANS WILL HAVE RUN OUT OF UNEMPLOYMENT AID BY THE END OF THIS WEEK. WALL STREET BEGAN THE YEAR'S THIRD QUARTER WITH MORE LOSSES. THE DOW JONES INDUSTRIAL AVERAGE LOST 41 POINTS TO CLOSE AT 9732. THE NASDAQ FELL NEARLY EIGHT POINTS TO CLOSE AT 2101. AND MOST AUTO-MAKERS REPORTED SALES FELL LAST MONTH. G.M., FORD, CHRYSLER AND TOYOTA REPORTED DROPS OF 12% TO 14% FROM MAY. NISSAN WAS OFF 23%. THE U.S. SENATE PAID FINAL RESPECTS TODAY TO THE LATE ROBERT BYRD. THE WEST VIRGINIA DEMOCRAT DIED MONDAY AFTER 51 YEARS IN THE SENATE-- THE LONGEST TENURE EVER. A MILITARY HONOR GUARD CARRIED HIS CASKET UP THE CAPITOL STEPS TODAY, PAST THE SENATOR'S PORTRAIT AND INTO THE SENATE CHAMBER. HE LAY IN REPOSE FOR SIX HOURS-- THE FIRST TIME THAT HAS BEEN DONE SINCE 1959. LATER, THE REMAINS WERE FLOWN TO CHARLESTON, WEST VIRGINIA FOR A MEMORIAL SERVICE TOMORROW. ONCE THE CEREMONIES FOR SENATOR BYRD WERE OVER, CONFIRMATION HEARINGS RESUMED FOR SUPREME COURT NOMINEE ELENA KAGAN. THIS TIME, DEMOCRATS AND REPUBLICANS CALLED WITNESSES TO MAKE THE CASE FOR AND AGAINST KAGAN. ONE WAS LILY LEDBETTER, WHO LOST A HIGH-PROFILE DECISION ON GENDER BIAS IN PAY. CONGRESS LATER CHANGED THE LAW TO ADDRESS HER GRIEVANCE.

>> ONE THING I'VE HEARD IN OBSERVING AND WATCHING THE HEARINGS OF ALL OF ELENA KAGAN'S RESPONSES HAVE BEEN THAT SHE WOULD ADHERE AND FOLLOW THE LAW, NOT MAKE THE LAW. SHE UNDERSTAND WHAT IS HER RESPONSIBILITY WOULD BE AS A SUPREME COURT JUSTICE.

>> Sreenivasan: REPUBLICANS CALLED NATIONAL GUARD CAPTAIN PETE HEGSETH. HE CRITICIZED KAGAN'S HANDLING OF MILITARY RECRUITERS, AS DEAN OF HARVARD LAW SCHOOL.

>> HOW DID WE REACH THIS POINT IN THIS COUNTRY WHERE WE'RE NOMINATING SOMEONE WHO UNAPOLOGETICALLY OBSTRUCT IT HAD MILITARY AT A TIME OF WAR? MS. KAGAN CHOSE TO USE HER POSITION OF AUTHORITY TO IMPEDE RATHER THAN EMPOWER THE WARRIORS WHO HAVE FOUGHT AND WHO WHO HAVE FALLEN FOR THIS COUNTRY.

>> Sreenivasan: SENATORS ON BOTH SIDES AGREED KAGAN IS ALMOST SURE TO BE CONFIRMED. NINE PEOPLE ACCUSED OF SPYING FOR RUSSIA ATTENDED BAIL HEARINGS TODAY IN SEVERAL U.S. CITIES. FEDERAL PROSECUTORS IN NEW YORK SAID ONE ADMITTED HE WAS A RUSSIAN MOLE, LIVING UNDER DEEP COVER. THEY ALSO SAID TWO SUSPECTS FROM NEW JERSEY HAD A SAFE-DEPOSIT BOX FILLED WITH NEW HUNDRED DOLLAR BILLS TOTALING $80,000. MEANWHILE, POLICE IN CYPRUS SEARCHED FOR ANOTHER SUSPECT WHO VANISHED AFTER HE WAS GRANTED BAIL. U.S. OFFICIALS WILL DESTROY ABOUT 40 MILLION DOSES OF H1N1 FLU VACCINE, BECAUSE THEY HAVE EXPIRED. THAT IS NEARLY A QUARTER OF THE TOTAL AMOUNT PRODUCED AND WORTH $260 MILLION. FEDERAL HEALTH OFFICIALS SAID THEY HAD TO BUY A HUGE QUANTITY OF VACCINE, TO BE READY FOR A WORST-CASE SCENARIO. AS IT TURNED OUT, THE H1N1 FLU KILLED FAR FEWER AMERICANS THAN SEASONAL FLU DOES. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JUDY.

>> Woodruff: IMMIGRATION TOOK CENTER STAGE IN WASHINGTON TODAY AS PRESIDENT OBAMA PUSHED FOR REFORM. THE PRESIDENT CALLED FOR CONGRESS TO REJECT ELECTION-YEAR POLITICS AND EMBRACE COMPREHENSIVE REFORM, IN HIS FIRST MAJOR ADDRESS ON IMMIGRATION REFORM SINCE TAKING OFFICE.

>> UNFORTUNATELY, REFORM HAS BEEN HELD HOSTAGE TO POLITICAL POSTURING AND SPECIAL INTEREST WRANGLING AND TO THE PERVASIVE SENTIMENT IN WASHINGTON THAT TACKLING SUCH A THORNY AND EMOTIONAL ISSUE IS INHERENTLY BAD POLITICS.

>> Woodruff: SPEAKING AT AMERICAN UNIVERSITY IN WASHINGTON, MR. OBAMA REJECTED AN APPROACH THAT FOCUSES MAINLY ON BORDER SECURITY.

>> THERE ARE THOSE WHO ARGUE THAT WE SHOULD NOT MOVE FORWARD WITH ANY OTHER ELEMENTS OF REFORM UNTIL WE HAVE FULLY SEALED OUR BORDERS. BUT OUR BORDERS ARE JUST TOO VAST FOR US TO BE ABLE TO SOLVE THE PROBLEM ONLY WITH FENCES AND BORDER PATROLS. IT WON'T WORK.

>> Woodruff: THE SPEECH CAME AMID A RENEWED NATIONAL DEBATE SPARKED BY AN ARIZONA LAW THAT TAKES EFFECT LATER THIS MONTH. THE LAW WILL MAKE IT A STATE CRIME TO BE IN THE COUNTRY ILLEGALLY. IT ALSO ORDERS POLICE TO QUESTION SOMEONE'S IMMIGRATION STATUS, IF THERE IS, QUOTE, "REASONABLE SUSPICION." MR. OBAMA WARNED AGAIN TODAY THAT COULD RESULT IN RACIAL PROFILING. AND IMMIGRATION ADVOCATES ARE URGING HIS ADMINISTRATION TO FILE SUIT TO BLOCK THE STATE LAW, ON THE GROUNDS THE FEDERAL GOVERNMENT HAS SOLE AUTHORITY TO REGULATE IMMIGRATION. THE PRESIDENT SAID A CLEAR, NATIONAL STANDARD IS NEEDED AND HE URGED REPUBLICANS TO JOIN IN SUPPORTING A BILL THAT SETS ONE.

>> I'M READY TO MOVE FORWARD, THE MAJORITY OF DEMOCRATS ARE READY TO MOVE FORWARD AND I BELIEVE THE MAJORITY OF AMERICANS ARE READY TO MOVE FORWARD. BUT THE FACT IS THAT WITHOUT BIPARTISAN SUPPORT, AS WE HAD JUST A FEW YEARS AGO, WE CANNOT SOLVE THIS PROBLEM.

>> Woodruff: IN THE MEANTIME, THE PRESIDENT HAS ORDERED 1,200 NATIONAL GUARD TROOPS, LIKE THESE, TO THE BORDER. TODAY, HE SAID WITH THE HIGHEST- EVER LEVEL OF SECURITY, ILLEGAL CROSSINGS ARE DOWN SIGNIFICANTLY. FOR MORE ON THE POLICY AND THE POLITICS BEHIND IMMIGRATION REFORM, WE ARE JOINED BY SUSAN PAGE, WASHINGTON BUREAU CHIEF FOR "U.S.A. TODAY." AND LINDA FELDMANN, WHITE HOUSE CORRESPONDENT FOR THE "CHRISTIAN SCIENCE MONITOR." GOOD TO HAVE YOU BOTH WITH US, WE APPRECIATE IT. SUSAN PAGE, TO YOU FIRST, WHAT WAS THE THRUST OF WHAT THE PRESIDENT WAS SAYING SNOWED.

>> WELL, THE PRESIDENT REPEATED WHAT HE SAID BEFORE, WHICH IS THAT HE SUPPORTS A COMPREHENSIVE IMMIGRATION BILL. HERE'S WHAT HE DIDN'T SAY. HE DIDN'T SAY HERE'S A TIMETABLE WE'RE GOING TO PURSUE. HE DIDN'T PROMISE THERE WOULD BE ACTION THIS YEAR. AND HE DIDN'T MENTION A LAWSUIT... LEGAL ACTION THAT WE EXPECT THE ADMINISTRATION TO TAKE AGAINST THAT ARIZONA LAW THAT TAKES AFFECT ON JULY 29. WHAT HE BASICALLY DID WAS RESTATE HIS PREVIOUS POSITION AS AN ASSURANCE TO SUPPORTERS THAT THIS IS AN ISSUE HE HAS NOT FORGOTTEN.

>> Warner: SO WHAT DOES HE WANT TO SEE DONE, LINDA FELDMANN.

>> WELL, THERE ARE FOUR PIECES OF COMPREHENSIVE IMMIGRATION REFORM. HE WANTS TO STRENGTHEN BORDER SECURITY WHICH EVERYBODY AGREES ON. AT THE SAME TIME, HE ALSO WANTS TO FOCUS ON OTHER ELEMENTS. ONE IS THAT EMPLOYERS ARE HELD RESPONSIBLE FOR MAKING SURE THAT THEIR EMPLOYEES ARE HERE LEGALLY. HE WANTS THE ILLEGAL IMMIGRANTS THEMSELVES TO STEP FORWARD, ADMIT THEY'VE BROKEN THE LAW, AND THEN HAVE A PATHWAY FOR THEM TO TAKE STEPS TO BECOME LEGAL. TO PAY A FINE, PAY TAXES, LEARN ENGLISH. AND THEN THE FINAL PIECE IS TO FIX THE SYSTEM OF LEGAL IMMIGRATION WHICH IS JUST AS BROKEN AS EVERY OTHER ASPECT OF THE SYSTEM.

>> Warner: BUT IF THERE'S NO TIMETABLE, SUSAN PAGE, WHAT'S THE PURPOSE OF THIS SPEECH?

>> WELL, THES AFTER SHOUTOUT TO HARRY REID. THE SENATE MAJORITY LEADER IS FACING A TOUGH REELECTION BATTLE IN NEVADA WHICH HAS A LARGE HISPANIC POPULATION. HARRY REID REPEATED AFTER THE PRESIDENT'S SPEECH TODAY THAT'S NOT LIKELY TO HAPPEN. IT'S A MESSAGE TO HISPANIC VOTERS, ESPECIALLY I DON'T THINKER HISPANIC VOTERS WHO CAME OUT AND VOTED FOR ANYMORE 2008 IN HOPE THIS IS ISSUE WOULD HAVE A PRETTY HIGH PRIORITY. IT'S BEEN SORT OF SIDELINED BY OTHER ISSUES, INCLUDING THE ECONOMIC ISSUES, THE STIMULUS PACKAGE, FINANCIAL REGULATIONS, HEALTH CARE REFORM, TWO WARS. SO IT HASN'T GOTTEN THE ATTENTION THAT ADVOCATES HOPED IT WOULD.

>> Woodruff: HE REFERRED TIME AND AGAIN TODAY TO THE PARTISANSHIP AND THE POLARIZATION ON THIS ISSUE. TO WHAT EXTENT IS THAT HOLDING THIS BACK?

>> THAT'S THE WHOLE BALL OF WAX. I MEAN, WHEN GEORGE BUSH WAS PRESIDENT, GEORGE BUSH II, HE CAME VERY CLOSE TO GETTING THAT PASSED AND GEORGE BUSH, OF COURSE, WAS A REPUBLICAN, BUT HE HAD A SIGNIFICANT AMOUNT OF REPUBLICAN SUPPORT FOR THAT. THAT HAS MELTED AWAY. JOHN McCAIN NO LONGER IS BACKING COMPREHENSIVE IMMIGRATION REFORM, LINDSEY GRAHAM, WHO WAS THE LAST REPUBLICAN STANDING, HE BACKED AWAY, SAID HE WOULD NOT SUPPORT THAT IN RESPONSE TO HARRY REID SAYING HE WANTED IMMIGRATION TO GO AHEAD OF ENERGY REFORM. SO THE DEMOCRATS ARE LEFT STANDING ON THEIR OWN.

>> Woodruff: AND SUSAN, WHAT'S BEHIND THE OPPOSITION? IS IT GENUINE DISAGREEMENT WITH WHAT THE PRESIDENT'S PROPOSING OR WHAT?

>> I THINK A COUPLE THINGS HAVE MADE THIS HARDER NOW THAN IT WAS EVEN WHEN GEORGE W. BUSH TRIED IT AND FAILED. SOMEONE THAT THE ECONOMY IS SO BAD. UNEMPLOYMENT SO HIGH. WE'RE GOING TO GET NEW UNEMPLOYMENT NUMBERS TOMORROW. WE THINK IT'S GOING TO HEAD BACK TOWARD 10%. THAT MAKES A LOT OF AMERICANS LESS SEUFRP THETIC TO ILLEGAL IMMIGRANTS, MANY FEEL THEY'RE TAKING AWAY JOBS AMERICANS MIGHT HAVE. THE OTHER THING THAT'S MADE THE POLITICS OF THIS HARDER IS THE RISE OF THE TEA PARTY MOVEMENT WHICH HAS REALLY FOCUSED ISSUE... FOCUSED ON OPPOSITION TO ILLEGAL IMMIGRATION. FOR SOMEONE LIKE JOHN McCAIN, THE SENATOR FROM ARIZONA, WHO FACES A TOUGH REPUBLICAN PRIMARY IN AUGUST, HE USED TO TALK ABOUT THE NEED FOR COMPREHENSIVE IMMIGRATION REFORM. FACING THIS CONSERVATIVE CHALLENGER IN HIS OWN PRIMARY, HE'S NOT TALKING ABOUT IT ANYMORE.

>> Woodruff: SO FROM THE WHITE HOUSE PERSPECTIVE LINDA FELDMANN, THERE'S NO POINT IN TRYING TO PUSH IT THIS YEAR.

>> AS JOHN CORNYN POINTED OUT TODAY, WHO I DON'T THEY INTRODUCE THE BILL, THEY HAVE A MAJORITY OF DEMOCRATS. BUT THEY CAN'T GET TO 60. THEY CAN'T BREAK THE FILIBUSTER. ANOTHER POSSIBILITY IS MAYBE THEY DO A LAME DUCK. DO THIS IN A LAME DUCK SESSION AFTER THE NOVEMBER ELECTIONS WHEN PEOPLE AREN'T QUITE SO FREAKY ABOUT THEIR REELECTION CHANCES. BUT I'M NOT SURE THAT EVEN THAT IS DOABLE.

>> Woodruff: IS THAT A REAL POSSIBILITY?

>> I THINK NOT. I THINK IT'S NOT JUST REPUBLICANS. THERE'S SOME MODERATE DEMOCRATS FROM SWING DISTRICTS WHO ARE NO MORE EAGER TO TAKE UP A COMPREHENSIVE IMMIGRATION PACKAGE THAN THOSE REPUBLICANS ARE.

>> Woodruff: I WANT TO COME BACK TO WHAT HAS THE PRESIDENT ACCOMPLISH BID MAKING THIS SPEECH AT AMERICAN UNIVERSITY TODAY? AS YOU POINTED OUT, IT'S INTENDED FOR PEOPLE WHO SUPPORTED HIM IN THE LATINO COMMUNITY AND OTHERS BUT WHAT IS HE GETTING? DOES THIS PRO POLE THEM TO GO UP AND... GO OUT AND VOTE DEMOCRATIC IN NOVEMBER?

>> I THINK THE WHITE HOUSE WOULD LOVE IF THAT HAPPENED. BUT, YOU KNOW, HE HAS NOT PREVIOUSLY GIVEN A SPEECH THAT'S DEVOTEED TO IMMIGRATION DURING HIS PRESIDENCY. THAT'S BEEN DISAPPOINTING FOR SOME OF HIS STAUNCHEST SUPPORTERS. HIS SUPPORT AMONG HISPANIC VOTERS HAS GONE DOWN SINCE HE WAS ININAUGURATED. IT'S STILL 57% AND THAT'S HIGHER FOR THE COUNTRY AS A WHOLE, HIGHER THAN FOR ANGLO VOTERS. IT'S IMPORTANT TO MANY OF THESE HISPANIC VOTERS AND OTHERS THAT HE SHOW HE REMAINS COMMITTED TO THIS ISSUE. IT'S HARD TO BELIEVE THIS IS GOING TO GET DONE THIS YEAR. BUT YOU COULD SEE CHANGES IN THE REPUBLICAN PARTY OR YOU COULD SEE THIS BEING A SECOND TERM KIND OF ISSUE.

>> Woodruff: THAT'S WHAT I WAS GOING TO ASK. WHAT IS THE THOUGHT THAT THE PROSPECTS ARE NEXT YEAR?

>> IT DEPENDS ON WHAT HAPPENS IN NOVEMBER. IF THE DEMOCRATS LOSE CONTROL OF EITHER HOUSE OF CONGRESS, THEN FORGET IT. THEY CAN'T SET THE AGENDA. IF THEY MAINTAIN CONTROL...

>> Woodruff: IS THAT RIGHT? IMMIGRATION IS DEAD?

>> I THINK SO IF THE REPUBLICANS TAKE OVER. I THINK THAT'S IT UNTIL THE DEMOCRATS TAKE OVER AGAIN.

>> Woodruff: NO CONCERN ON THE PART OF REPUBLICANS THAT THEY'RE SEEN AS OPPOSING THIS?

>> I THINK IT'S POSSIBLE REPUBLICANS WILL TAKE A SOFTER POSITION AFTER THE ELECTION. FOR ONE THING, THEY'LL LOOK AT THE PRESIDENTIAL RACE. IT'S HARD TO GET TO 50 5-% IN THIS COUNTRY IF YOU HAVE ALIENATED HISPANICS, THE NATION'S FASTEST-GROWING GROUP. ALSO YOU HAVE SOME REPUBLICAN HISPANIC CANDIDATES ON THE BALLOT IN NOVEMBER, MARCO RUBIO, THE CUBAN AMERICAN IN THE FLORIDA SENATE RACE. YOU'VE GOT SUSANNA MARTINEZ WHO IS A LATINA RUNNING FOR GOVERNOR IN NEW MEXICO. SHE'D BE THE FIRST LATINA GOVERNOR IN THE COUNTRY IF SHE WINS. AND THOSE VOICES MAY SUCCEED IN ALTERING TO SOME DEGREE THIS VERY STAUNCH REPUBLICAN OPPOSITION WE SEE NOW.

>> Woodruff: MEANWHILE, LINDA FELDMANN IF YOU'RE LATINO, OR ANYBODY IN THIS COUNTRY, AND YOU CARE ABOUT THIS ISSUE, WHAT DO YOU HAVE TO LOOK FORWARD TO THE REST OF THIS YEAR?

>> I GUESS YOU CAN JUST KEEP WORKING FOR THE ISSUE. THERE HAVE BEEN DEMONSTRATIONS ALL OVER THE COUNTRY. YOU CAN MAKE IT CLEAR TO YOUR MEMBER OF CONGRESS THAT YOU CARE ABOUT THIS ISSUE. BUT ANOTHER THING IN TERMS OF THE REPUBLICAN REACTION LOOKING... SHORT TERM IT'S PROBABLY THE SAFE POSITION AS A REPUBLICAN TO NOT BACK IT. BUT LONG TERM LOOK AT WHAT HAPPENED IN CALIFORNIA. YOU HAD PETE WILSON WHO ROAD TO REELECTION ON THE TOUGH PROPOSITION 187. BUT THAT BROUGHT UP A VERY STRONG LATINO INVOLVEMENT IN DEMOCRATIC POLITICS AND THAT HAS HANDED THE STATE TO DEMOCRATS. SO LONG-TERM IT'S GOOD FOR THE DEMOCRATS.

>> Woodruff: WE ARE GOING TO KEEP WATCHING IT. LINDA FELDMANN, SUSAN PAGE. THANK YOU BOTH.

>> THANK YOU.

>> Brown: NEXT, THE BOOMING SOUTH AMERICAN NATION OF BRAZIL IS LOOKING TO OIL TO GIVE IT AN EVEN BIGGER BOOST. MARGARET WARNER REPORTS FROM RIO DE JANIERO.

>> Reporter: THE P-51 OIL PLATFORM RISES FROM THE SOUTH ATLANTIC OFF THE BRAZILIAN COAST, LIKE A FIRE-BREATHING LEVIATHAN OF MYTHIC TIMES. AS THE U.S. FIGHTS TO PACIFY THE B.P. GUSHER IN THE GULF, THE P51-- OWNED BY BRAZILS NATIONAL OIL COMPANY, PETROBRAS-- IS PUMPING 24/7 FROM SIMILAR DEPTHS BELOW THE SEA. ITS THE NEWEST PLATFORM IN IT'S THE NEWEST PLATFORM IN BRAZILS QUARTER-CENTURY PUSH TO DEVELOP ITS OIL RESERVES. 90% OF THEM ARE OFFSHORE, MANY IN FAR DEEPER WATERS THAN THE B.P. RIG. JULIO ALMEIDA IS OPERATIONS CHIEF OF A VAST PETROBAS FIELD, WITH THREE RIGS AT WORK. HE'S PROUDEST OF THIS ONE.

>> THIS WAS THE LAST PLATFORM BUILT BY PETROBRAS, AND HERE YOU HAVE THE LAST TECHNOLOGY INSTALLED HERE.

>> Reporter: THE PLATFORM DRAWS FROM 19 DIFFERENT WELLS TO PRODUCE 135,000 BARRELS OF OIL AND 1.6 MILLION CUBIC FEET OF NATURAL GAS A DAY. PLATFORMS LIKE THIS HAVE SPAWNED A HUGE OIL SERVICE INDUSTRY. THE ECONOMY OF THE ONCE-SLEEPY PORT OF MACAE 100 MILES BACK ON SHORE HAS GROWN SIX-FOLD IN A DOZEN YEARS. BRAZIL GETS A REMARKABLE 45% OF ITS ENERGY FROM RENEWABLE SOURCES, BUT ITS OIL PRODUCTION SOARED AFTER DISCOVERING DEEP WATER FIELDS IN THE MID-1980s. PETROBRAS NOW PRODUCES OF ALL THE DEEPWATER OIL ON THE PLANET, PETROBRAS NOW PRODUCES ONE QUARTER OF ALL THE DEEPWATER OIL ON THE PLANET, AND THE COUNTRY NO LONGER HAS TO IMPORT FOREIGN OIL. NOW THE COUNTRY'S POISED TO DEVELOP NEW ULTRA-ULTRA DEEP FIELDS SOME 200 MILES OFFSHORE BURIED UNDER NEARLY FIVE MILES OF WATER, SEMI-HARD SALT AND ROCK. THE VENTURE HAS BEEN DUBBED THE PRE-SALT. BUT NOW, THE B.P. SPILL PROMPTS SOME TO SAY CAUTION IS IN ORDER.

>> THIS NEW ACCIDENT-- IT'S AN ALERT, A KIND OF YELLOW FLAG THAT WE SHOULD TAKE CARE AND WE SHOULD BE VERY CAREFUL ABOUT THE NEXT STEP.

>> Reporter: SEGEN ESTEFEN, PROFESSOR AT THE FEDERAL UNIVERSITY OF RIO DE JANEIRO, OVERSEES A RESEARCH CENTER TESTING NEW EQUIPMENT FOR INDUSTRY CLIENTS, INCLUDING PETROBRAS, TO SEE IF IT CAN WITHSTAND PRESSURES IT WILL ENCOUNTER AT SEA.

>> IT'S A TYPICAL SCENARIO FOR DEEP WATER EXPLORATION AND PRODUCTION.

>> Reporter: THAT IS MUCH GREATER THAN BACK EVEN AT THE B.P. HORIZON LEVEL.

>> SURE, BECAUSE YOU KNOW THE CONTROL OF THE... THE EQUIPMENT HERE, IT'S MORE COMPLICATED.

>> Reporter: HIS TESTING DEVICES INCLUDE A CHAMBER PRESSURIZING WATER TO EVER GREATER DEPTHS AND A WAVE MACHINE ROILING WATER IN A DEEP TANK TO SEE IF SMALL RIG PROTOTYPES CAN TAKE THE POUNDING. ESTEFEN SAYS MOST OIL COMPANIES HE KNOWS WERE SHOCKED AT B.P.'S REPEATED FAILURES TO CAP ITS DAMAGED WELL.

>> THIS WAS A BIG SURPRISE, BECAUSE THE STATE-OF-THE-ART CONTINGENCY PLANS DID NOT WORK IN VERY DEEP WATERS.

>> Reporter: THE SHOCK JOLTED SOME GOVERNMENTS, INCLUDING NORWAY AND THE U.S., TO CURTAIL LICENSING OR DRILLING. BRAZIL HAS DONE NONE OF THAT.

>> EVERY HUMAN ACTIVITY HAS RISK. WHEN WE CROSS THE STREET, WE FACE RISK. WHAT WE DO IT TO REDUCE RISK TO A MINIMAL LEVEL.

>> Reporter: MAGDA CHAMBRIARD, OPERATIONS DIRECTOR AT BRAZILS NATIONAL PETROLEUM REGULATORY AGENCY, THE A.N.P., SAYS IT HAS ASKED COMPANIES TO RE-ASSESS THEIR RISK TO A B.P.-LIKE EVENT, BUT WON'T IMPOSE NEW RULES UNTIL THE U.S. COMPLETES ITS PROBE OF THE DISASTER.

>> WE ARE CONFIDENT IN WHAT WE DOING IN BRAZIL NOW, BUT WE ARE OPEN TO ANALYZE THE ANSWER OF THIS INVESTIGATION, AND IF NECESSARY WE CAN ADJUST OUR STANDARDS.

>> Reporter: ALONG BRAZIL'S SPECTACULAR COASTLINE, THERE'S A LOT AT STAKE IN THE A.N.P.'S GETTING IT RIGHT. THIS IS THE SCENE ON A SUNDAY MORNING ALL UP AND DOWN THE MILES-LONG SHORELINE OF RIO. THE ENTIRE CITY, RICH AND POOR AND IN BETWEEN OUT ENJOYING THE SUN, THE AIR AND EACH OTHER. THIS IS WHAT WOULD BE THREATENED BY A B.P.-LIKE OIL SPILL. AT THIS COPACABANA FISHING COOPERATIVE 120 MILES SOUTH OF THE P-51 RIG, BRAZIL'S WATERS PROVIDE LIVELIHOOD OF A DECIDEDLY LOW-TECH SORT. 55-YEAR-OLD CARLOS FIGUEIREDO, WHO SUPPORTS HIS FAMILY BY FISHING SAYS HE'S NEVER HAD TO FACE AN OIL SPILL AND ISN'T WORRIED NOW.

>> I'M NOT REALLY AFRAID BECAUSE ALL THE FISH ARE IN DEEP, DEEP WATER AND THE OIL STAYS ON THE SURFACE.

>> Reporter: BUT SUN WORSHIPPERS SONIA NASCIMENTO AND FABIANA ADELINO WOULD HATE TO LOSE THEIR PRECIOUS BEACH ESCAPE.

>> YES, I'M AFRAID, IT'S TERRIBLE. IT'S NOT IMPOSSIBLE IT CAN HAPPEN.

>> Reporter: AND THEY WORRY THEIR GOVERNMENT ISN'T TAKING THE B.P. SPILL SERIOUSLY.

>> THEY'RE NOT TRULY COMMITTED. I THINK THE WILL IS MISSING TO DO THINGS TO MAKE US SAFE.

>> Reporter: SUCCESSFUL SURF SHOP OWNER CARLOS TAVARES ALSO WORRIES ABOUT A B.P.-LIKE SPILL. YET, HE BELIEVES PETROBRAS CAN HANDLE WHATEVER HAPPENS.

>> IF I DON'T BELIEVE IN THEM, IN THE COMPANY PETROBRAS, WHO IS IT I CAN BELIEVE IN?

>> Reporter: THEN THERE'S THE ENVIRONMENTAL RISK. ECOLOGICAL ECONOMIST PETER MAY BROUGHT US TO PRISTINE PRAINHA BEACH, WAY SOUTH OF RIO. THE OIL RIGS ARE RIGHT OFFSHORE. FARTHER THAN THE EYE CAN SEE.

>> THERE IS NO SUCH THING AS A SAFE OIL DRILLING OPERATION OFFSHORE, NO MATTER HOW DEEP OR SHALLOW. AS WE HAVE SEEN IN THE GULF, THE WORST CAN HAPPEN AND THE RESULTS CAN BE DEVASTATING.

>> Reporter: MAY WANTS THE NEW PRE-SALT RESERVES LEFT UNDERGROUND, WHILE BRAZIL KEEPS EXPANDING ITS RENEWABLE ENERGY OPTIONS.

>> WE HAVE POTENTIAL TO TAKE A DIFFERENT ROUTE AND WERE MISSING DIFFERENT ROUTE AND WE'RE MISSING THAT OPPORTUNITY.

>> Reporter: DO YOU THINK THERE'S ANY CHANCE THAT BRAZIL WON'T GO AHEAD AND DEVELOP THIS HUGE NEW RESERVE?

>> VERY LITTLE. I THINK IT'S A FAIT ACCOMPLI.

>> Reporter: THAT THERE SEEMS TO BE QUITE A LOT OF CONFIDENCE IN PETROBRAS AND THE GOVERNMENT.

>> CERTAINLY. CONFIDENCE IS, KIND OF, BRAZILS MIDDLE NAME. OPTIMISM AND CONFIDENCE IN THE FUTURE AND BRAZIL THE COUNTRY OF THE FUTURE.

>> Reporter: THAT FUTURE CERTAINLY LOOKS BRIGHT. BRAZILIANS ARE RIDING AN ECONOMIC WAVE OF HIGH GROWTH AND LOW UNEMPLOYMENT THAT'S THE ENVY OF THE U.S. BACK ON THE P-51, THAT CONFIDENCE IS PALPABLE, ESPECIALLY WHEN IT COMES TO THE SAFETY OF ITS NEW SEMI- SUBMERSIBLE PLATFORMS.

>> 10 YEARS AGO, PETROBRAS USED OTHER TYPE OF PLATFORM. WE ARE MUCH MORE STABLE THAN THE OLDER PLATFORMS.

>> Reporter: THE TECHNOLOGY ON THIS NEW PLATFORM IS IMPRESSIVE, BUT DOESN'T ANSWER THE FUNDAMENTAL QUESTION. SINCE THE NEW PRE-SALT OPERATIONS WILL BE PUMPING FROM TWO-TO-FOUR TIMES THIS DEPTH, IN ROUGHER WATERS, TWICE AS FAR OUT TO SEA IS THE CURRENT TECHNOLOGY ENOUGH TO ENSURE SAFETY IN THE RIGS TO COME? NO, SAYS FORMER A.N.P. DIRECTOR DAVID ZYLBERSZTAJN: THE ABILITY TO DRILL DEEP HAS OUTPACED THE KNOW-HOW OF HOW TO DO IT SAFELY. DOES THE TECHNOLOGY EXIST ANYWHERE IN THE WORLD NOW TO DO WHAT BRAZIL HOPES TO DO IN THE PRE-SALT FIELDS?

>> NO. NO, THIS TECHNOLOGY EXACTLY, THIS TECHNOLOGY NO. WITH THE SALT LAYER, THOSE CONDITIONS ARE MUCH MORE COMPLICATED IN TERMS OF HOW TO, TO FACE AN ACCIDENT.

>> Reporter: THE A.N.P.'S CHAMBRIARD CONCEDES THE POINT, BUT SAYS BRAZIL OVERCAME A SIMILAR LACK OF EXPERTISE AFTER THE MID-'80s DEEPWATER DISCOVERY.

>> FOR SURE, WE'LL INCREASE TECHNOLOGY, WE WILL IMPROVE MATERIALS, WE WILL HAVE LOTS OF NEW TECHNOLOGIES TO ENSURE THAT WE WILL HAVE THESE OPERATIONS AS SAFE AS POSSIBLE.

>> Reporter: YOU SEEM TO HAVE GREAT CONFIDENCE IN MEETING THIS CHALLENGE.

>> SURE. BRAZILIANS ARE ACCUSTOMED TO DO THIS, NOT BECAUSE BRAZIL WANTS TO DO THIS, BUT BECAUSE BRAZIL NEEDS TO DO THIS.

>> Reporter: FORMER A.N.P. HEAD ZYLBERSTAJN FAULTS THE COUNTRY'S POLITICAL LEADERS FOR NOT QUESTIONING THAT CONFIDENCE.

>> OUR CONGRESSMEN, THEY ARE NO SO MUCH INTERESTED IN TERMS OF WHAT EXACTLY IS THE GOVERNMENT PROPOSING. THEY ARE DISCUSSING ABOUT HOW TO SHARE THE MONEY.

>> Reporter: SO EVERYONE CAN SEE THAT POT OF BLACK GOLD OUT THERE.

>> YES.

>> Reporter: URBAN SCHOLAR AND HISTORIAN ROSA MARIA ARAUJO SAYS THAT'S WHY THERE'S BEEN NO POLITICAL OR PUBLIC OUTCRY FOR A RETHINKING OF THE PRE-SALT VENTURE. AND YOU NEED THE REVENUES.

>> OIL HAS CAPITAL IMPORTANCE FOR RIO, FOR THE STATE OF RIO.

>> Reporter: AS WELL AS BOOSTING THE SKYLINE OF RIO, OIL MONEY HAS FUNDED A SOCIAL EXPERIMENT IN THE FAVELAS, OR SLUMS WITH STIPENDS, JOBS, CLINICS AND POLICE PROTECTION TO TAKE BACK CONTROL FROM THE DRUG GANGS THAT USED TO TERRORIZE THEM.

>> CHILDREN DON'T SEE THE PARADE OF PEOPLE WITH GUNS WALKING AROUND, AND WE DON'T HEAR PEOPLE FIGHTING AT NIGHT.

>> Reporter: BUT BRAZILIANS SAY MUCH MORE NEEDS TO BE DONE TO CLOSE THE GAP BETWEEN RICH AND POOR.

>> THE HEALTH POLICY, THE EDUCATION POLICY, THE SECURITY POLICY, TO TRY TO FACE THE CRIME, THEY ARE VERY EXPENSIVE. YOU HAVE TO HAVE LONG RUN POLICIES.

>> Reporter: FOR THAT, SAYS ARAUJO, OIL RICHES ARE KEY. COULD IT BE DONE WITHOUT THAT?

>> NO, WE COULD NOT. THE REVENUE OF RIO WITHOUT OIL REVENUE IS NOT ENOUGH.

>> Reporter: IN A COUNTRY WITH BRAZIL'S DYNAMIC ECONOMY AND SPIRIT AND HUGE UNMET NEEDS, IT'S A SAFE BET THAT FOR THE FORESEEABLE FUTURE, BRAZIL'S ULTRA DEEP WELLS WILL KEEP ON PUMPING.

>> Woodruff: NEXT, THE BEGINNING OF A NEW SERIES ABOUT THE GLOBAL ECONOMIC SITUATION. "NEWSHOUR" ECONOMICS CORRESPONDENT PAUL SOLMAN WILL BE REPORTING FROM EUROPE ABOUT THE PROBLEMS THERE AND THE TOUGH CHOICES AHEAD. TONIGHT, FROM ATHENS, A LOOK AT HOW GREECE IS COMING TO TERMS WITH ONE OF THE WORST DEBT CRISES IN THE WORLD. PAUL'S INTERVIEW WITH THE GREEK PRIME MINISTER IS PART OF HIS ONGOING REPORTING ON "MAKING SENSE OF FINANCIAL NEWS."

>> Reporter: PROTESTORS IN ATHENS THIS WEEK, UP IN ARMS OVER A BILL BEING DEBATED HERE IN THE GREEK PARLIAMENT TO RAISE THE RETIREMENT AGE, REDUCE PAYMENTS TO PENSIONERS, MAKE LAYOFFS EASIER. AFTER A FIRE AND THREE DEATHS IN MAY, THE PROTESTS HAVE AGAIN TURNED VIOLENT. A LETTER BOMB WAS SENT TO THE INTERIOR MINISTER LAST WEEK, KILLING AN AIDE. THE ATHENS STOCK MARKET HAS ALSO REACTED VIOLENTLY, DOWN SOME 40% FOR THE YEAR AND THE RATE TO LEND GREECE MONEY ON THE OPEN MARKET HAS SOARED TO 12%: JUNK BOND STATUS BECAUSE OF A DEBT THAT'S 115% OF G.D.P. TRYING TO WALK THE FINE LINE BETWEEN MARKETS AND MAYHEM, LOW- KEY PRIME MINISTER GEORGE PAPANDREOU, BROUGHT UP IN EXILE IN AMERICA WHEN GREECE WAS RULED BY THE MILITARY, SOCIOLOGY STUDENT AT AMHERST COLLEGE, SON AND GRANDSON OF PRIME MINISTERS AND A MODEL OF CALM MAKING THE DIFFICULT CASE THAT, DESPITE THE STORM, GREECE IS ON THE RIGHT COURSE. WE SAT DOWN WITH HIM AT HIS PRIVATE OFFICE IN THE PARLIAMENT. PRIME MINISTER, PAPANDREOU, THANK YOU FOR JOINING US.

>> THANK YOU.

>> Reporter: IS GREECE, THE GREEK ECONOMY COMING APART?

>> WELL OBVIOUSLY, WE HAVE A DAUNTING AHEAD OF US PROSPECT TO CHANGE OUR ECONOMY, CHANGE OUR SOCIETY I WOULD SAY.

>> Reporter: BUT THAT'S WHY PEOPLE ARE PROTESTING IN THE STREET, I MEAN, VIOLENTLY PROTESTING, RIGHT?

>> WELL, LET'S DIFFERENTIATE SOME OF THE ACTS OF VIOLENCE WHICH ARE THE VERY SMALL MINORITY, VERY UNHAPPY EVENTS, A VERY SMALL MINORITY, BUT THEY DON'T REPRESENT IN ANY WAY THE PEACEFUL DEMONSTRATIONS, WHICH ARE UNDERSTANDABLE, AND THE FACT AT THE SAME TIME A LARGE NUMBER OF THE GREEK PEOPLE, I WOULD SAY A MAJORITY OF THE GREEK PEOPLE, UNDERSTAND THAT THESE MEASURES ARE NECESSARY.

>> Reporter: WHAT ARE THE BASIC PROBLEMS OF THE GREEK ECONOMY?

>> I WOULD SAY FIRST OF ALL THE FACT THAT THE WE HAVE A DEBT IS THE TIP OF THE ICEBERG OF THE PROBLEM OF BEING MORE COMPETITIVE ON THE ONE HAND AND THAT'S WHY WE'RE REALLY CHANGING THE PRODUCTIVE, IF YOU LIKE, BASIS OF THE ECONOMY, MOVING INTO A GREEN ECONOMY, A MORE TRANSPARENT ECONOMY, ALSO AN ECONOMY WHERE WE HAVE A-- WE STILL HAVE A LARGE SHADOW ECONOMY, WHICH IS ALSO A HOPE BECAUSE BRINGING THAT INTO THE FORMAL ECONOMY WILL ALSO HELP NOT ONLY OUR STATISTICS BUT ALSO BRING IN REVENUE FOR THE PUBLIC SECTOR.

>> Reporter: SHADOW ECONOMY MEANING AN UNDERGROUND ECONOMY...

>> THAT'S RIGHT...

>> Reporter: PEOPLE DON'T PAY TAXES...

>> THAT'S ONE THING BUT THERE'S, DON'T PAY TAXES OR LABOR'S NOT REGISTERED, THERE'S A LOT OF GRAFT IN SOME AREAS. WHEN WE TACKLE THAT IN SOME OF THE LEGISLATION, WHICH WE'VE ALREADY PASSED, STARTING TO TACKLE SOME OF THESE ISSUES. GIVE YOU AN EXAMPLE: TAX EVASION IS GOING DOWN, WE HAVE HIGHER TAX REVENUES, EVEN IN THE FIRST TWO MONTHS AFTER THE NEW TAX LAW WHICH WE PASSED. THESE ARE TYPES OF THINGS WHICH WILL ALLOW US TO TAP INTO LOST REVENUES WHICH EXIST BECAUSE GREECE IS NOT A POOR COUNTRY. IT IS A RICH COUNTRY BUT IT IS A BADLY MANAGED COUNTRY BECAUSE OF THESE PARTICULAR ISSUES.

>> Reporter: ARE THESE THE KEY SOLUTIONS THAT THE I.M.F. INSISTED ON WHEN IT AND EUROPE GRANTED YOU $100 BILLION PLUS BACK IN MAY?

>> THERE'S A WHOLE RANGE OF ISSUES. OBVIOUSLY, WE TOOK SOME VERY DIFFICULT AND IMMEDIATE MEASURES.

>> Reporter: SUCH AS?

>> SUCH AS CUTTING WAGES. WE'VE CUT DOWN WAGES UP TO 20 AND 30% IN SOME SECTORS, PUBLIC SECTORS, CUTTING PENSIONS. THESE WERE VERY DIFFICULT MEASURES. OBVIOUSLY THAT'S WHY PEOPLE ARE UNHAPPY AND FEEL THE PAIN. EVEN THOUGH THERE ARE DEMONSTRATIONS WE ALSO HAVE LARGE SUPPORT. PEOPLE UNDERSTAND THAT THIS IS THEIR PATRIOTIC DUTY, THAT WE MUST MOVE FORWARD, CHANGE OUR ECONOMY, DO NOT DEFAULT, AND DEAL WITH OUR DEBT. TWO LAWS WHICH WE'RE PASSING THIS WEEK HAVE DO WITH OUR FISCAL STABILIZATION AUTHORITY, WHICH WILL FOLLOW OUR BUDGET THROUGH THE PARLIAMENT AN AUTONOMOUS BODY, MAKING THINGS VERY TRANSPARENT, AND SECONDLY, A MAJOR PENSION REFORM WHICH WILL MAKE OUR PENSION SYSTEM VIABLE.

>> Reporter: BUT WILL THAT BILL PASS?

>> THAT WILL PASS. YES.

>> Reporter: YOU GUARANTEE IT? I MEAN, ISN'T THAT HUGELY CONTROVERSIAL AT THE MOMENT?

>> IT'S HUGELY CONTROVERSIAL AND THAT'S WHY WE ARE SHOWING THAT THERE IS A STRONG POLITICAL WILL, THAT, YES, WE CAN DO THINGS WHICH IN THE PAST 10, 20, 30 YEARS NO OTHER GOVERNMENT, NOT ONLY WAS NOT ABLE TO DO, BUT DIDN'T DARE DO. SO THIS JUST SHOWS THAT TODAY WE HAVE THE WILL AND THE CAPABILITY OF DOING THAT.

>> Reporter: NOURIEL ROUBINI IN THE FINANCIAL TIMES JUST THE OTHER DAY SAYS, "AN ORDERLY REFINANCING OF GREECE'S DEBT, THAT IS, STRETCHING OUT THE TERMS, LOWERING THE PAYMENTS, IS ACHIEVABLE, DESIRABLE, UNAVOIDABLE. YES? NO?

>> WE COULD HAVE MADE THE CHOICE OF DEFAULTING BUT WE HAVE MADE THE CHOICE, NOT ONLY GREECE, OF NOT DEFAULTING, AND MAKING THESE VERY PAINFUL CHANGES IN GREECE IN ORDER TO BE HONORING CONTRACTS WITH OUR CREDITORS. AT THE SAME TIME, THIS IS NOT ONLY A GREEK DECISION. THIS IS A DECISION OF THE EUROPEAN UNION, WHICH HAS BACKED GREECE, PLUS OF COURSE THE COUNTRIES IN THE I.M.F., WITH A HUGE PACKAGE OF 110 BILLION FOR LOANS OF COURSE WHICH WE'RE PAYING BACK BUT THAT JUST SHOWS THE POLITICAL WILL TO HELP GREECE MOVE OUT OF THIS CRISIS AND MAKE THE NECESSARY CHANGES.

>> Reporter: TWO QUICK QUESTIONS. RIGHT NOW YOUR DEBT IS, YOU'RE PAYING 12% OR MORE FOR DEBT, BACK IN FEBRUARY IT WAS 6% AND YOU SAID AT THAT TIME CREDIBILITY IS THE KEY ISSUE SO ISN'T THAT A SUGGESTION THAT THINGS ARE DETERIORATING?

>> THE MARKETS ARE VERY FEARFUL, VERY RISK AVERSE AFTER 2008 SO THEY TAKE TIME IN ORDER TO SEE WHETHER A PROGRAM OR A GOVERNMENT OR A COMPANY OR A BANK IS CREDIBLE. WE NEED THAT TIME. WE WERE GIVEN THAT TIME THROUGH THIS PACKAGE FROM THE EUROPEAN UNION AND THE I.M.F. SO THAT WE CAN MAKE THE NECESSARY CHANGES IN OUR COUNTRY. SO, I WOULD SAY, LET'S LOOK AT THE TREND IN GREECE AND THE TREND IN GREECE IS A POSITIVE ONE. WE'RE 40% DOWN ON OUR DEFICIT. WE'RE AHEAD OF TARGET FROM THE FIRST REPORT CARD THAT WE'RE GETTING FROM THE I.M.F. AND THE EUROPEAN UNION. WE HAVE MADE MAJOR CHANGES. WE'RE DOING REFORMS IN PENSION, EDUCATION, AND HEALTH. THESE ARE THINGS THAT SHOW WE'RE ON TRACK.

>> Reporter: SO, WHY DOES IT MATTER TO AMERICA, TO AMERICANS WHAT HAPPENS HERE IN GREECE?

>> WELL, FIRST OF ALL, I THINK THAT WE'RE ALL A VERY INTERDEPENDENT WORLD SO THAT ANYTHING THAT HAPPENS ANYWHERE IN THE WORLD AFFECTS EVERYONE ELSE. WE SAW THAT WITH LEHMAN BROTHERS IN THE CRISIS ON WALL STREET. IT DIDN'T JUST AFFECT THE UNITED STATES ONLY. IT AFFECTED THE GLOBAL ECONOMY, BUT WE SAW THAT ALSO WITH GREECE. I WOULDN'T HAVE EXPECTED, AND I DIDN'T EXPECT THIS EVEN JUST A FEW MONTHS AGO, WAS HOW GREECE COULD BECOME THE CENTER OF ATTENTION BECAUSE OF ITS PROBLEMS. AND THAT'S BECAUSE, AND WE ALL KNOW THIS, WHEN IT HITS YOU, IT IS MUCH MORE STRIKING, THE FACT THAT WE ARE SO INTERWOVEN, SO INTERDEPENDENT. A SMALL EVENT HERE, AN ARTICLE HERE, A COMMENT THERE CAN CREATE A PANIC THROUGHOUT THE WORLD.

>> Reporter: PRIME MINISTER, PAPANDREOU, THANK YOU VERY MUCH.

>> THANK YOU.

>> Woodruff: ON MONDAY, PAUL IS EXPECTED TO INTERVIEW THE FRENCH FINANCE MINISTER, CHRISTINE LAGARDE.

>> Brown: FINALLY TONIGHT, THE LIBRARY OF CONGRESS HAS JUST NAMED THE NEW POET LAUREATE OF THE UNITED STATES. HE IS W.S. MERWIN, LONG ONE OF THE NATION'S MOST PROMINENT POETS, AUTHOR OF MORE THAN 50 BOOKS OF VERSE, TRANSLATIONS, MEMOIRS AND MUCH MORE, AND WINNER OF NUMEROUS LITERARY PRIZES. IN 2008, I MET MERWIN IN NEW YORK, WHERE WE TALKED ABOUT HIS LIFE AND WORK. HERE'S AN EXCERPT FROM OUR REPORT. I WAS FASCINATED BY THE POEMS MY MOTHER READ TO ME AND THE HYMNS WE SANG IN CHURCH AND WHICH HAD A DIFFERENT... I MEAN "THE SPACIOUS FIRMAMENT ON HIGH" I THOUGHT THAT'S PRETTY INTERESTING BUT I WAS A KID WHO COULDN'T READ YET, YOU KNOW?

>> Suarez: FOR MORE THAN 30 YEARS, HAWAII HAS BEEN MERWIN'S HOME. HE LIVES WITH HIS WIFE PAULA IN A HOUSE HE DESIGNED AND BUILT AT THE EDGE OF A DORMANT VOLCANO ON THE ISLAND OF MAUI. THERE HE CULTIVATES HIS OTHER LIFE LONG PASSION: GARDENING, AND HE IS PASSIONATE AS BOTH ACTIVIST AND POET OF THE NATURAL WORLD world world

>> I CAN TRACE THAT BACK INTO EARLY CHILDHOOD AND I THINK IT'S ALWAYS BEEN THERE BUT I THINK I'VE ALWAYS... THE THINGS THAT MAKES ME WANT TO WRITE IS THE SAME THING THAT MAKES BELOVE THAT BLADE OF GRASS AND I CAN'T SEPARATE THEM.

>> Brown: ANOTHER THING THAT COMES THROUGH HERE TSE THAT KIND OF SIMPLICITY OF LANGUAGE, OF FORM.

>> I SEEM GLAD YOU SAY THAT, BECAUSE I'VE BEEN TRYING SINCE I WAS 30, AT LEAST, TO WRITE MORE SIMPLY AND MORE DIRECTLY. I LIKE THE IDEA THAT SOMETIME S ONE HEARS POETRY AS SOMEONE OVERHEARING IT, YOU KNOW? AND SOMETIMES MY FAVORITE PASSAGES OF POETRY HAVE SEEMED LIKE THAT. THERE'S SOMETHING THAT... THEY'RE JUST AROUND IN THE AIR SOMEWHERE. THEY'RE... THEY SEEM SO SIMPLY THE WAY MOAT S.A.D.D. SEEMED SO SIMPLE. NEITHER IS SHAKESPEARE BUT "SHALL I COMPARE THEE TO A SUMMER'S DAY" IT TAKES YOUR BREATH AWAY. YOU STOP AND THINK "MY GOD HOW BEAUTIFUL THAT LINE IS."

>> Brown: YOU MEAN YOU'RE TRYING TO PARE DOWN TO A KIND OF CLARITY?

>> I WOULD LIKE IT... IF PEOPLE RESPOND TO A POEM OF MINE AT ALL I WOULD LIKE THEM TO FEEL FINALLY THAT THEY MIGHT HAVE WRITTEN IT.

>> Brown: REALLY? THAT THEY MIGHT HAVE WRITTEN IT?

>> YEAH.

>> Brown: ON A NEW YORK STREET THAT CLARITY OF MEMORY AND THE NATURAL WORLD CAME TOGETHER IN THE POEM "RIGHT RAIN LIGHT."

>> "ALL DAY THE STARS WATCH FROM LONG AGO. MY MOTHER SAID I AM GOING NOW. WHEN YOU ARE ALONE, YOU WILL BE ALL RIGHT, WHETHER OR NOT YOU KNOW, YOU WILL KNOW. LOOK AT THE OLD HOUSE IN THE DAWN RAIN, ALL THE FLOWERS ARE FORMS OF WATER. THE SUN REMINDS THEM THROUGH A WHITE CLOUD, TOUCHES THE PATCHWORK SPREAD ON THE HILL, THE WASHED COLORS OF THE AFTERLIFE THAT LIVE THERE LONG BEFORE YOU WERE BORN. SEE HOW THEY WAKE WITHOUT A QUESTION, EVEN THOUGH THE WHOLE WORLD IS BURNING."

>> Brown: W.S. MERWIN WILL ASSUME HIS ONE-YEAR POST AS THE 17th POET LAUREATE IN THE FALL.

>> Woodruff: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: OIL SPILL CLEAN-UP CREWS WAITED FOR THE ALL-CLEAR IN THE GULF OF MEXICO, AFTER THE PASSAGE OF HURRICANE ALEX. B.P.'S NEW MAN IN CHARGE OF THE SPILL VOWED THE COMPANY WILL BE THERE FOR THE LONG TERM AND WILL NOT TRY TO CAP DAMAGES. BOB DUDLEY SPOKE IN A SPECIAL INTERVIEW WITH "THE NEWSHOUR", "YOUTUBE" AND "GOOGLE." AND TWO SUICIDE BOMBERS KILLED AT LEAST 35 PEOPLE IN LAHORE, PAKISTAN. MORE THAN 175 OTHERS WERE WOUNDED. AND THIS EVENING, PRESIDENT OBAMA SIGNED NEW SANCTIONS AIMED AT IRAN'S NUCLEAR PROGRAM, BUT HE SAID THE DOOR TO DIPLOMACY IS STILL OPEN. THE "NEWSHOUR" IS ALWAYS ONLINE. HARI SREENIVASAN, IN OUR NEWSROOM, PREVIEWS WHAT'S THERE. HARI?

>> Sreenivasan: ON OUR "ART BEAT" PAGE, W.S MERWIN READS MORE OF HIS POETRY. ON GREECE, WATCH MORE FROM PAUL'S INTERVIEW WITH THE PRIME MINISTER, AND A WEB-ONLY DEBATE BETWEEN ECONOMISTS NASSIM TALEB AND NOURIEL ROUBINI ABOUT THE ROLE OF GOVERNMENT STIMULUS IN A RECOVERY PLAN. THAT'S ON OUR "MAKING SENSE" PAGE. AND SEE ALL OF RAY'S INTERVIEW WITH B.P.'S ROBERT DUDLEY, PART OF TODAY'S COLLABORATION WITH GOOGLE AND YOUTUBE, PLUS CHECK OUT OUR OIL SPILL TRACKER AND LIVE VIDEO FEED OF THE GUSHING WELL. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JEFF?

>> Brown: AND THAT'S THE "NEWSHOUR" FOR TONIGHT. I'M JEFFREY BROWN.

>> Woodruff: AND I'M JUDY WOODRUFF. WE'LL SEE YOU ON-LINE AND AGAIN HERE TOMORROW EVENING WITH MARK SHIELDS AND DAVID BROOKS, AMONG OTHERS. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY: AND THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org