The NewsHour with Jim Lehrer

JUDY WOODRUFF: Good evening. I`m Judy Woodruff.

On the "NewsHour" tonight, after the news of this Thursday, we devote the rest of the program to the death of former Pakistani Prime Minister Benazir Bhutto; the latest on her assassination from Griff Witte of The Washington Post in Islamabad; an interview with Pakistan`s ambassador to the United States; a look at Bhutto`s career and the political comeback she staged in the face of daily threats to her life; plus, what the killing means for Pakistan and for the United States.

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JUDY WOODRUFF: Pakistan opposition leader Benazir Bhutto was assassinated today. The former prime minister was shot in the neck and chest. Moments later, a suicide bombing killed at least 20 others. It happened just after a campaign rally in Rawalpindi. The crime touched off riots that left five people dead.

Pakistani President Pervez Musharraf blamed Islamic militants. He did not say if he would delay parliamentary elections set for January 8.

Another opposition leader, Nawaz Sharif, said he would boycott any vote. Earlier today, four people were killed at one of his rallies.

There was no immediate claim of responsibility in the Bhutto killing.

But, from Crawford, Texas, President Bush condemned the attack, and he praised Bhutto`s life.

GEORGE W. BUSH, President of the United States: Those who committed this crime must be brought to justice. Mrs. Bhutto served her nation twice as prime minister, and she knew that her return to Pakistan earlier this year put her life at risk. Yet, she refused to allow assassins to dictate the course of her country.

JUDY WOODRUFF: Later, Mr. Bush telephoned Pakistani President Musharraf. And a State Department spokesman said, postponing elections would only be a victory for extremists.

Reaction to Bhutto`s death also came from other leaders and governments around the world.

GORDON BROWN, British Prime Minister: She has been assassinated by cowards afraid of democracy. Benazir Bhutto may have been killed by terrorists, but the terrorists must not be allowed to kill democracy in Pakistan. And this atrocity strengthens our resolve that terrorists will not win there, here, or anywhere in the world.

ROMANO PRODI, Italian Prime Minister (through translator): They were going towards elections. For me, she was a hope of stability for Pakistan. We`re waiting for information we still don`t have to understand which will be the next steps that the country could take.

JUDY WOODRUFF: Pakistan`s long-time rival, India, also spoke out. A spokesman in New Delhi read a statement for the foreign minister.

NAVTEJ SARNA, Spokesman, Indian Foreign Ministry: "I heard with shock and horror of the death of Mrs. Benazir Bhutto. Mrs. Bhutto was a brave and outstanding woman leader of the subcontinent -- subcontinent. That she should fall to a barbarous terrorist attack is particularly tragic and should strengthen our resolve to fight this scourge.

JUDY WOODRUFF: In New York, the U.N. Security Council voted today to condemn the assassination. Secretary-general Ban Ki-moon called it an assault on stability.

The death of Bhutto rippled across the U.S. presidential race today. Democrats and Republicans alike changed focus to address the attack and its implications.

Senator Barack Obama reacted to Bhutto`s death at a campaign event in Iowa.

SEN. BARACK OBAMA (D-IL), Presidential Candidate: But we have to make sure that we are clear as Americans that we stand for democracy and that we will be steadfast in our desire to end the kinds of terrorists acts that have blighted not just Pakistan, but other parts of the world.

JUDY WOODRUFF: Senator Hillary Clinton issued this statement: "Her death is a tragedy for her country and a terrible reminder of the work that remains to bring peace, stability and hope to regions of the globe too often paralyzed by fear, hatred and violence."

And former Senator John Edwards:

JOHN EDWARDS (D), Presidential Candidate: It`s very important under these circumstances, in these kind of times, for America to show both strength and principle, to be a calming influence, to be a reassuring influence, and to continue to promote democratization in Pakistan.

JUDY WOODRUFF: Among the Republican candidates, former Arkansas Governor Mike Huckabee said: "On this sad day, we are reminded that, while our democracy has flaws, it stands as a shining beacon of hope for nations and people around the world who seek peace and opportunity through self- government."

From former New York Mayor Rudy Giuliani:

RUDOLPH GIULIANI (R), Presidential Candidate: We can`t let this be a step back. We have to let it become a step forward toward stability, democracy, rule of law, and then something -- something positive can be taken out of something that is really tragic.

JUDY WOODRUFF: Former Massachusetts Governor Mitt Romney spoke from New Hampshire.

MITT ROMNEY (R), Presidential Candidate: The world is very much at risk by virtue of these radical, violent extremists. And we must come together in an effort, in great haste and with great earnestness, to help overcome the threat of the spread of radical violent jihad.

JUDY WOODRUFF: We will have much more on the Bhutto assassination right after this news summary.

In Iraq today, U.S. troops killed 11 members of a Shiite militia splinter group. It happened during a raid in Kut. The target was suspected of planning attacks on coalition forces. A firefight erupted, and U.S. planes and helicopters attacked the militants. No Americans were killed or wounded.

Israeli and Palestinian leaders today held their first summit since renewing peace talks last month. Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas met for two hours in Jerusalem. The two sides said they agreed to set aside a dispute over Jewish settlements in East Jerusalem.

In Kenya, millions of voters went to the polls today to elect a president. Balloting was relatively peaceful after a campaign marked by violence. Incumbent Mwai Kibaki won power in 2002 and had a narrow lead in early exit polls today. His challenger, Raila Odinga, was a former ally who led in pre-election polls.

The U.S. Internal Revenue Service warned today that tax refunds will come late to more than three million Americans. It said those who file early won`t see refunds until later in February. The IRS cited a last- minute decision by the Congress to freeze the alternative minimum tax.

On Wall Street today, stocks tumbled on the Bhutto assassination and concerns about the economy. The Dow Jones industrial average lost 192 points, to close at 13359. The Nasdaq fell 47 points, to close at 2676.

That`s it for the news summary tonight.

Now complete coverage of the assassination of former Pakistani Prime Minister Bhutto.

We begin with a look at what happened today in Pakistan.

Jeffrey Brown narrates our report.

JEFFREY BROWN: Benazir Bhutto began her day in Islamabad meeting with Afghan President Hamid Karzai, who had been in Pakistan on an official visit.

BENAZIR BHUTTO, Former Pakistani Prime Minister: Thank you so much. See you soon.

JEFFREY BROWN: Terrorism had topped the agenda for the meeting, and Bhutto told reporters afterward that the two had agreed to work towards ending extremism should she become prime minister after parliamentary elections scheduled for January 8.

BENAZIR BHUTTO: And we, too, believe that it is essential for us, both of our countries, and indeed the larger Muslim world, to work to protect the interests of the Islamic civilization by eliminating extremism and terrorism.

JEFFREY BROWN: From Islamabad, Bhutto headed about 10 miles south to Rawalpindi, the city where the Pakistan army has its headquarters. There, she staged a campaign rally in the final days before the election.

She told the crowd, "I put my life in danger and came here because I feel this country is in danger."

Afterwards, Bhutto walked to a white vehicle in her caravan, surrounded by aides, supporters and security.

This is the last photograph of Bhutto alive, waving to the crowd from the sunroof of her vehicle. Witnesses reported she was fired on at close range by a gunman. Soon after, a bomb exploded. At least 20 people were killed in the blast. Bhutto was rushed to Rawalpindi General Hospital for surgery as crowds thronged the scene.

Later, a member of Bhutto`s party announced that she had been declared dead by doctors at 6:16 p.m. local time.

Nawaz Sharif, the leader of another opposition party and also a former prime minister, had to this to say at the hospital.

NAWAZ SHARIF, Former Pakistani Prime Minister: It is not a sad day. It is the darkest, darkest, gloomiest day in the history of this country. Something unthinkable has happened.

JEFFREY BROWN: Sharif had also been the target of violence earlier in the day. At least four people were killed when his supporters clashed with backers of President Pervez Musharraf in Rawalpindi.

In a phone interview with the BBC, Sharif said President Musharraf`s government had not done enough to protect her and later called for his resignation.

NAWAZ SHARIF: The government should have taken adequate measures and steps to protect Benazir Bhutto. And I think there was a serious lapse in the security that was being provided by the government. I think the government should have really ensured the security and protection of Benazir Bhutto.

JEFFREY BROWN: The attacks took place just 12 days after Musharraf lifted a state of emergency in the country, which had been imposed in November.

Hours after Bhutto`s death was confirmed, Musharraf addressed the country and expressed his condolences to her family.

PERVEZ MUSHARRAF, Pakistani President (through translator): At this unfortunate incident, in honor of Madam Benazir Bhutto, I am declaring three days of mourning. Our flags will fly at half-mast.

This is the work of those terrorists with whom we are engaged in war. I have been saying that the nation faces the greatest threats from these terrorists. Today, after this tragic incident, I want to express my firm resolve. And I also seek solidarity from the nation and cooperation and help. We will not rest until we eliminate these terrorists and root them out.

JEFFREY BROWN: Back in Kabul, Afghan President Karzai paid tribute.

HAMID KARZAI, President of Afghanistan: I have learned with shock that Benazir Bhutto, the daughter of Pakistan and of the Muslim world, has been martyred in an attack of cowardice, of brutality.

JEFFREY BROWN: As news of Bhutto`s death spread, angry supporters took to the streets of Rawalpindi. Violence also broke out in Lahore and Karachi. Some four hours after Bhutto`s death, her body was carried from the hospital in a white casket, surrounded again by her supporters.

JUDY WOODRUFF: For more, Jeff talked earlier today with Washington Post correspondent Griff Witte in Islamabad.

JEFFREY BROWN: Griff, what you have learned so far about the attack and how a gunman was able to get so close to Bhutto?

GRIFF WITTE, The Washington Post: The attack occurred as Benazir Bhutto was in a four-by-four vehicle leaving a rally in the garrison city of Rawalpindi just south of Islamabad.

And she was in the vehicle as it drove away. And she asked her aides to open the moon roof, as she often does, so that she could peer out and wave to the crowd as she left. She went up to put her head above the roof of the vehicle. And, at that point, between three and five shots rang out.

It`s unclear exactly where they came from. She came -- she immediately fell back down into the vehicle, and, just at that moment, literally seconds later, a suicide bomber detonated himself right next to her vehicle. It`s not clear at the moment how the gunman and the bomber were able to get so close.

JEFFREY BROWN: So, it`s not clear yet whether the gunman and the bomber were one and the same?

GRIFF WITTE: It is not clear. There were differing accounts.

I spent several hours at the hospital this evening talking to witnesses, people who had survived the attack. And the majority of them said that they believed that the gunman and the bomber were the same person, that someone had come up very close with a pistol and started firing at very close range, and had hit miss Bhutto.

And then her security forces had jumped on top of him, and that`s when he detonated himself. But her -- her top aides, who were sitting right with her when this attack occurred, said they just didn`t know, that they were not sure, and they were still waiting to hear from doctors as far as their assessment of what had happened.

JEFFREY BROWN: Now, you were at the hospital this evening. Describe the scene for us there.

GRIFF WITTE: It was an incredibly chaotic scene. It started with a couple of dozen supporters who showed up, just based on a rumor that she had been wounded in the attack. But no one knew for sure.

And, within probably 45 minutes to an hour of their arrival, word came out from the hospital that she had in fact died. And the response from the crowd was really one of deep despair. People were chanting slogans against Musharraf. They were chanting slogans of, "Long live Bhutto." They were weeping. They were collapsing in grief. They were smashing windows, smashing doors.

They were trying -- ultimately, there were thousands and thousands of people at the hospital who were pushing and shoving and trying to get their -- make their way into the hospital, so that they could see Benazir Bhutto for one last time.

JEFFREY BROWN: They were chanting against President Musharraf. You were with many of her supporters. Are they blaming him for this?

GRIFF WITTE: Many of them are. Her top aides are not saying for sure who they think is responsible, but her rank-and-file supporters are absolutely blaming Musharraf and his allies.

They feel that Musharraf and his allies were concerned they would get beaten very badly at the polls next month in elections that are scheduled for January 8, and that essentially they had decided to erase Benazir Bhutto from the political scene because they were concerned that she was a threat to their power.

Musharraf, obviously, has blamed a very different culprit. He says that the -- that those responsible for this attack are Islamic extremists, Taliban, al-Qaida. Obviously, he`s not -- not conceding that his people had anything to do with this.

JEFFREY BROWN: Now, there have been reports of protests and demonstrations around the country in the aftermath. What can you tell us about that?

GRIFF WITTE: There have been riots in several cities, in -- in several towns. People are out on the streets burning buses, burning police vehicles. They`re throwing rocks.

There is a tremendous anger here. This has been an incredibly tumultuous year for Pakistan. It`s been in political turmoil since last March. And it seems as though the crisis only deepens by the day. There`s a lot of frustration out there, people who feel that Musharraf should have been gone long ago. And a lot of people felt that Benazir Bhutto was someone who could effectively -- even out of power.

And people are quite upset, quite -- quite disenchanted, and there`s a sense out there on the streets tonight that democracy may never come to Pakistan.

JEFFREY BROWN: And there were also reports of a -- an emergency cabinet meeting of Mr. Musharraf`s government. On the agenda, no doubt, was that parliamentary election you mentioned, whether it would go forward or not. Is there any further word on that?

GRIFF WITTE: We don`t know for sure tonight. One of the top opposition parties, one led by former Prime Minister Nawaz Sharif, has announced this evening that it will not take part in the elections, but it will boycott.

But it`s unclear whether the elections are going to go ahead as planned. They are supposed to be just under two weeks from now. But, obviously, the Pakistan`s People Party, which is the party that Ms. Bhutto led, is in complete disarray at the moment. It was a party that was very much based around the Bhutto family, led first by Benazir Bhutto`s father, Zulfikar Ali Bhutto, and then for the last three decades by Benazir Bhutto.

And there`s not a clear successor there. It`s not clear at all who can lead the Pakistan People`s Party from now on. There`s no logical choice from within the Bhutto family. And, so, this party is completely without a clear leader at the moment.

And there`s also just a very significant potential for greater violence over the coming days and weeks. There`s so much anger out there on the streets, and there`s such a sense of despair and a sense that perhaps there had been a chance to have a transition toward democracy, but that chance keeps getting pushed further and further away.

JEFFREY BROWN: All right, Griff Witte of The Washington Post, thank you very much.

GRIFF WITTE: Jeff, thank you.

JUDY WOODRUFF: Now we turn to Pakistan`s ambassador to the United States, Mahmud Ali Durrani.

Mr. Ambassador, thank you for being here.

MAHMUD ALI DURRANI, Pakistani Ambassador to United States: Pleasure.

JUDY WOODRUFF: First, do you have any new information about who or what was behind this?

MAHMUD ALI DURRANI: No, I don`t have new information, but my assessment is that probably it is the same people who tried to kill Musharraf three times, who tried to kill our prime minister, and the same people who are carrying out suicide bombings on a daily basis in Pakistan. It is the extremists and terrorists.

JUDY WOODRUFF: So, to those suspicions that Mr. Musharraf or his supporters had anything to do with this, as we just heard the reporter Griff Witte saying.

MAHMUD ALI DURRANI: Yes, you see what has happened is -- and I saw from film clips, too -- people were very frustrated. They were very upset. They lost a leader just after she has finished her speech. And it is a day of mourning for Pakistan, no doubt.

So, there is a level of frustration and people have voiced that against the government and probably against President Musharraf. But I think a saner look at it, it is very obvious it is extremists and terrorists. In fact, they had a common enemy, Musharraf and Benazir.

JUDY WOODRUFF: You spoke to President Musharraf earlier today. What was his personal reaction?

MAHMUD ALI DURRANI: Yes, I spoke to him, I think, about an hour-and- a-half or two hours maybe after the event. He was very upset. He was very disturbed.

All that he said was that: I`m going to declare mourning in the country for a couple of days, but this should firm up our resolve to a greater extent to fight these extremists and terrorists.

JUDY WOODRUFF: You were hearing from -- again from the reporter, Griff Witte with The Washington Post and others...

MAHMUD ALI DURRANI: Yes.

JUDY WOODRUFF: ... across the news today that -- worry that Pakistan is going to dissolve into chaos. Are you worried about that?

MAHMUD ALI DURRANI: No, I`m not. Pakistan has gone through chaos. It has gone through problems. It has gone through, you know, situations like this, natural catastrophes. We are a very strong people, in spite of all what people think. And, God willing, we will come out of this stronger.

JUDY WOODRUFF: The concerns also being raised that the election now can`t go forward. You have one party, Benazir Bhutto`s party, completely in disarray. You have Mr. Sharif saying he is not going to participate in the election.

MAHMUD ALI DURRANI: Yes.

JUDY WOODRUFF: How can the election go forward?

MAHMUD ALI DURRANI: Well, let`s wait and see. Let`s not prejudge this, because let`s see how events unfold.

To the best of my knowledge, the PPP has not said that they`re going to go into election. Mr. Nawaz Sharif, even earlier, had decided that he`s not going to go into election, but he will still join in. We hope that he again decides that he should join in.

But, besides him, there are over 40 -- there are around 47 or 49 political parties which are participating. The previous ruling government party was participating. The PPP will participate and all the other major parties are participating.

JUDY WOODRUFF: But it has no leader now.

MAHMUD ALI DURRANI: No, there will always be a leader. Vacuums are always filled. And I`m sure the PPP, in its greater judgment, will pick out the right successor for her.

JUDY WOODRUFF: What about the despair that was described, the despair among ordinary Pakistanis, that democracy is now just a distant dream?

MAHMUD ALI DURRANI: No, I beg to disagree.

There is a despair, yes, definitely, among her supporters that their beloved leader has gone, gone forever, its only voice. So, that despair is there. But I don`t think that necessarily translates into despair that Pakistan is falling apart or there will be no democracy.

I think the people of Pakistan are for democracy. And come what may, I think, sooner or later, we will have democracy.

JUDY WOODRUFF: Mr. Ambassador, an important question for you, and that is accusations being raised today by -- they had been raised by Benazir Bhutto herself. They are being raised today by her supporters and by others that the Musharraf, your government, didn`t do enough to protect her, that there were repeated requests for protection, security, and that that protection was never provided.

MAHMUD ALI DURRANI: No.

To the best of my information, I think the amount of protection that is being provided to -- or was provided to Benazir and all the other opposition leaders is almost the same that has been provided to the prime minister and the president.

But a suicide attacker is a suicide attacker. And especially with political leaders, when they have to go out -- What is the word for that? - - go out and meet their supporters, shake hands with them, you saw that clip before she went into the vehicle. If you saw that, there were security people around her. But, in a situation like this, where there`s a suicide bomber, it`s probably impossible for the best security system in the world able to stop them.

JUDY WOODRUFF: So, you know for a fact that she was given the protection she asked for?

MAHMUD ALI DURRANI: Absolutely. Absolutely.

I would say she was given not exactly what maybe she may ask for, but, for Pakistan`s environment, I think she was given the best protection possible.

JUDY WOODRUFF: Pakistan`s Ambassador to the United States Mahmoud Abbas, we thank you very much for being with us on this day.

MAHMUD ALI DURRANI: Pleasure. Thank you.

JUDY WOODRUFF: We appreciate it.

MAHMUD ALI DURRANI: Thank you.

JUDY WOODRUFF: Next, Benazir Bhutto, the twice former and would-be third-time prime minister of Pakistan.

Margaret Warner has that part of our coverage.

MARGARET WARNER: Benazir Bhutto returned to Pakistan in mid-October after eight years of self-imposed exile.

BENAZIR BHUTTO, Former Prime Minister of Pakistan: I feel very, very emotional coming back to my country. I dreamt of this day for so many months and years.

MARGARET WARNER: As leader of the Pakistan People`s Party or PPP, Bhutto was vying for a third term as prime minister in upcoming parliamentary elections. But her triumphant return was cut short when her motorcade was hit by a double suicide attack in Karachi.

She survived, but some 150 supporters were killed. The Harvard- educated Bhutto first became prime minister in 1988, the first elected woman leader of any Muslim nation. It was a personal triumph for the 35- year-old Bhutto, whose father, a former president, had been executed nine years earlier.

But in 1990, she was ousted by the president and military amid charges of corruption. She won the prime ministership again in 1993, but was toppled again in 1996 on the same charges. During her years outside Pakistan, Bhutto lived in Dubai and London, and continued to lead her opposition party.

She returned to Pakistan after Musharraf granted her amnesty from the corruption charges. They had been negotiating a deal that would let Bhutto run for prime minister in free and fair elections, while Musharraf got reelected as a civilian to the presidency he had initially seized in a military coup.

But, in early November, Musharraf imposed emergency rule and twice placed Bhutto under house arrest. He insisted he did so for her own safety. Just hours after Bhutto`s last house arrest was lifted, I spoke with her in the home in Lahore where she had been detained.

She told me that, despite the threats against her life, she would continue to campaign openly.

BENAZIR BHUTTO: I can still campaign -- not as freely as in the past -- but I don`t intend to be intimidated by those who threaten to kill me.

And I see that, in every event where there is a threat to one`s core interests, national interests, people send their young men and women to give their lives. America sends their young men and women to Afghanistan, where they risk death. No one turns around and says, don`t send our boys because somebody may kill you. So, when there is a cause that is larger than oneself, one has to take the risks.

MARGARET WARNER: Let me ask you about a couple of things President Musharraf has said.

One, he has said that putting you under house arrest and in detention a couple of times was absolutely necessary for your own security, that there have been threats against you, that you have chosen risky spots and venues for rallies and marches. What do you say to that?

BENAZIR BHUTTO: I say that, if he`s worried about threats against me, instead of putting me behind bars, he should get in Scotland Yard or FBI to investigate the militant terrorist attack that took place on my convoy. If he gets independent investigators, then I`m sure the very militants and their backers will be frightened, because they will know that they can be discovered.

I suspect that elements within the administration are sympathetic to the militants, and they want to eliminate my leadership to prevent democracy from returning to Pakistan and to prevent any political party having a leader with a mass support or nationally that can enable us to build a popular base to confront the terrorists.

So, what I would like to tell him is that, why do you hesitate to let me file a police report against the murderers? Why do you hesitate to call in Scotland Yard? Call them in. Let the militants know that they can`t escape.

MARGARET WARNER: So, are you accusing people in his government of complicity in the attacks, essentially the assassination attempt last month?

BENAZIR BHUTTO: Yes, I suspect elements within the Musharraf administration to have conspired to eliminate me through a terrorist attack. And I suspect elements within the administration who continue to try to eliminate me. I asked for jammers. They gave me some jammers that just don`t work.

MARGARET WARNER: Bhutto was referring to cell-phone-jamming equipment that was supposed to be used to foil phone-triggered bomb attacks.

After intense international pressure, Musharraf lifted the state of emergency earlier this month. He was sworn in as a civilian president and said the January parliamentary elections would proceed.

In recent weeks, Bhutto had accused Musharraf of preparing to rig those elections. But she continued to campaign as head of the country`s largest party. She died just a few miles from where her father, Zulfikar Ali Bhutto, was hanged at age 51 by the military dictatorship of General Zia-ul Haq. Benazir Bhutto was 54.

For personal insight into Bhutto, the woman and political figure, we turn to two of her longtime advisers and friends. Husain Haqqani was an aide to Bhutto during her first term as prime minister. He`s now a journalist and syndicated columnist in South Asian and Middle Eastern newspapers, and he also directs the Center for International Relations at Boston University.

Mark Siegel has been Benazir Bhutto`s man in Washington for decades, serving as an unofficial adviser. He has also been a longtime Democratic Party activist and now associated with a Washington law firm. He and Bhutto were collaborating on a book.

First of all, I want to just extend my condolences to both of you.

MARK SIEGEL, Friend of Benazir Bhutto: Thank you.

MARGARET WARNER: I know this is a very sad day for you.

Mark Siegel, did she have a premonition that this might happen to her?

MARK SIEGEL: Benazir talked about the possibility of being killed many, many times in our relationship, and with Husain as well. She understood that there were risks, but she was committed to public service.

She long ago decided that her greatest service in life was not to herself, not to her husband, not to her children, even, but, rather, to democracy and to the people of Pakistan. So, she understood the risk.

And we talked about it. She said to me that she -- she had great faith, and she believed, she really believed that God would take care of her, and she told me not to worry. She said she was in God`s hands. And, today, she`s in God`s hands.

MARGARET WARNER: Husain Haqqani, do you think she was fatalistic, that she had a strong sense she would share her father`s fate, who -- he was such a major figure in her life?

HUSAIN HAQQANI, Former Aide to Benazir Bhutto: He was the most important figure in her life. I don`t think she was fatalistic in a very conscious sense, but, in a subconscious sense, she was.

She use the term inshallah, God willing, quite frequently. And she had a tremendous ability to handle adversity. You could see her bounce back from adversity in the most difficult of circumstances.

MARGARET WARNER: And, Mark Siegel, when -- just before she returned, she sent a letter to Musharraf naming three people she said were a threat to her. And they were all people tied to the government.

MARK SIEGEL: Yes.

MARGARET WARNER: But she sent you a follow-up e-mail. And I would just like to read the first two lines to you and to our viewers: "Mark, nothing will, God willing, happen. Just wanted you to know, if it does, in addition to the names in my letter to Musharraf of October 16, I would hold Musharraf responsible."

Did -- did she really think that?

MARK SIEGEL: She did, and she had reason to believe that was the case. She had asked for security for October 18 and 19. It was denied to her.

The only protection she had on those days were from the PPP workers that surrounded her. She also asked that there be a thorough investigation. There was not. There was not.

(CROSSTALK)

MARK SIEGEL: And there still has not been.

And she continued to ask for security arrangements that were continually denied. She did believe that, ultimately, these things could not be happening if it wasn`t for Musharraf directly.

MARGARET WARNER: And, yet, Husain Haqqani, she was also very, very aware, she had a vivid understanding of the sort of Islamic extremist or terrorist threat, did she not?

HUSAIN HAQQANI: She had a tremendous understanding of it long before others had it. I worked with her from 1993 to 1996. There were many moments in cabinet meetings which I attended where she would say that there is a genuine threat arising, that the jihadist movement is probably going to turn on us.

In fact, I have -- I used to take notes on those meetings. And I was browsing through some of those notes this morning. And, at that time, of course, the Pakistani military and intelligence apparatus did not believe that the jihadists could actually ever become a threat to Pakistan. They thought that they were instruments of power politics in the region.

So, she actually did know them. She knew that Osama bin Laden personally had been involved in an attempt to get rid of her earlier in her first term. And she -- she was a true believing Muslim who had a genuine understanding of what Islam ought to be as a moderate force in the world, rather than the one represented by the nihilists of al-Qaida.

MARGARET WARNER: So, Husain Haqqani, just following up, though, given all the risks that she knew she faced, why did she go back?

HUSAIN HAQQANI: Benazir Bhutto always said that, "Pakistan needs me, and I need Pakistan."

I know. I started out as a young man being one of the many middle- class critics of the Bhutto family, only to learn that the big change they represented in Pakistan was democracy was, they brought democracy and they brought politics to the poor of Pakistan.

So, when you meet Pakistan`s upper classes, they still have the cynicism about her. But the truth is, she had an idealistic side to her. She cared about the 65 million people of Pakistan who lived below the poverty line. She cared about the 65 million who just lived above the poverty line.

Yes, she was not particularly popular amongst the 30 million who live very well off, although she herself was one of them. But her ideals were, this country has to become a moderate country based on the will of its people, and it has to be a country where poor people can be cared about.

Let me tell you a little story. When she was prime minister...

MARGARET WARNER: Actually, let me -- let me just -- let me just interrupt you for a second and get back to Mark Siegel. And then I will get right back to you.

But, Mr. Siegel, her two terms as prime minister, as we know, were definitely faulted for both sort of management incompetence and also on allegations of corruption. Now, publicly, she always said: "Well, nothing has ever been proven. I have never been convicted."

But was she any more reflective or forthcoming about that in private? What did she say about that?

MARK SIEGEL: Well, first, she was very constrained in both two terms by the intelligence agencies, by the military, by the establishment. She never had firm control of the government because of -- because of them.

Charges were brought against her for -- for corruption. But there -- that`s what -- when you bring down anyone in Pakistan, under the constitution, you charge incompetence and corruption, including the chief minister, who -- the supreme court chief justice, who was brought down again for the same charge.

She was never convicted of any of these things. With all...

MARGARET WARNER: But...

MARK SIEGEL: But, no, with all of the ammunition of the government against her, she was never convicted. Her husband was in jail for 11 years and was never convicted.

Saying all of that, she`s learned a great deal. She was ready to be a great prime minister for a third term. She understood modernity. She was a bridge between East and West. She was a bridge within Islam between -- between the forces of Islam. And she understood that extremism thrives under dictatorship. And she was determined to stop that.

MARGARET WARNER: So, Husain Haqqani, given, though, everything -- oh, actually, I -- sorry. I just want to follow up with Mark Siegel on one other thing.

Now, just before she returned -- actually, I have read that to you. Forgive me for that.

So, Husain Haqqani, explain to me, given all her criticism of Musharraf, including what she said in the e-mail to Mark Siegel, why did she still try to negotiate a deal with him to share power, because, as you know, that led people in Pakistan, some ordinary people, even, to say, well, she was just interested in power?

HUSAIN HAQQANI: Well, the deal was about a transition to democracy. That`s where they fell apart. After November 3, she suspended all negotiations. That`s the day Musharraf imposed a state of emergency, because he never took her into confidence about the state of emergency.

Having a negotiation is something that came naturally to Benazir Bhutto. She -- even when I was -- as I told you, I was an opponent, but she reached out to me. And she said: "What are you doing opposing us? Your ideas and mine are similar. You should work with me, for me."

And, so, she negotiated not because she wanted something. Of course, if she got elected, she would serve the country. She negotiated because she thought that there can be only two ways out of a military dictatorship, a blood-in-the-streets scenario or a negotiation in which there can be a transition in a phased manner.

That is what she hoping to accomplish. And you must remember, people criticized her a lot. She stayed her course. And now, by all accounts, the people were coming back to her. If you look at the opinion poll trends, the people who left her because they thought she was cutting a deal understood her argument, and now she was back to her popularity ratings of before.

MARGARET WARNER: Finally, Mark Siegel, explain one other apparent paradox. She was so viewed in the West as the symbol of the modern Muslim woman, yet, she was also very much the daughter of traditional Pakistan, wasn`t she?

MARK SIEGEL: She was. And she came from a family that was a major landholder in Sindh. But she had progressive parents. I mean, both the two boys and the two girls had equal education. They both were encouraged to serve publicly.

She was a modern woman, but she was -- she did have strong roots within Islam and within the traditions of Pakistan. The book that she has just completed that I helped her with, "Reconciliation: Islam, Democracy, and the West," talks about the reconciliation between -- between the West and the East, between Islam and the rest of the world, and the reconciliation within Islam of the forces of fanaticism and the forces of true tolerant pluralistic Islam.

Benazir Bhutto was a -- was a wonderful woman. She was a brave woman. It was an honor to know her and an honor to be her friend.

MARGARET WARNER: Mark Siegel and Husain Haqqani, again, our condolences to you both. And thank you.

JUDY WOODRUFF: On our Web site, you can watch "NewsHour" interviews with Benazir Bhutto, read a timeline of her political career, and learn more about the politics of Pakistan. Visit us at PBS.org.

Finally tonight, the reverberations from the Bhutto assassination in Pakistan and beyond. We get three views.

Shahid Husain was special assistant for economic affairs to Benazir Bhutto`s father, Prime Minister Zulfikar Ali Bhutto, during the mid-1970s. And he had a 33-year career at the World Bank and is now a consultant.

Shuja Nawaz is a former Pakistani journalist and official at the World Bank and the international monetary fund. He`s the author of a forthcoming book about the Pakistani military.

Stephen Cohen served in the State Department`s policy planning staff in the 1980s. He`s written extensively on Pakistan and is now a senior fellow at the Brookings Institution.

Gentlemen, thank you, all three, for being here.

Stephen Cohen, this has been all over the news today, as far as I can see. We are devoting an entire hour to this. Does -- is the death of Benazir Bhutto, does it merit that much attention in this country and elsewhere?

STEPHEN COHEN, Senior Fellow in Foreign Policy Studies, Brookings Institution: I think it does because she was in a sense the best hope for a moderate, reasonably secular Pakistan, in tune with the rest of the world and Islam that Pakistan had produced in a long time. She had many failings, but I think, on balance, she was going to be -- she would have been a better leader her third term, had she won or had she had that opportunity.

And I think her death, but this way, is really strengthening the forces of darkness in Pakistan, and they`re going to see this as a great victory. And the ineptness of the government in protecting her or coming up with any reasonable solutions I think is going to come back to haunt them.

I think there will be more changes in Pakistan, more dramatic changes in Pakistan. And I don`t expect the present setup to remain as it is now.

JUDY WOODRUFF: Mr. Nawaz, as a native of Pakistan, what did she mean for your country? And how does that change with her death?

SHUJA NAWAZ, Author/Journalist: I think she felt that she had a mission that she needed to fulfill. These are all the ideas that she thought that she should have implemented in her first two terms, because, when I spoke with her before she left for Pakistan last fall, this is what was guiding her, that she was unafraid of the risks, which she was also quite cognizant of. But she was ready to go in and to battle for what she thought was an opportunity to change the way Pakistan is operated and run.

Mr. Husain, also a native of Pakistan, you worked for Benazir Bhutto`s father. What did she mean for your country?

SHAHID HUSAIN, Former Pakistani Official: Well, she was young. She was a woman. She was educated. She was very controversial also, which means that today is probably not the day and not the time to look at her flaws and -- but she represented the contradictions of Pakistan`s history.

JUDY WOODRUFF: In what way?

SHAHID HUSAIN: If you look at Pakistan`s history of the last 60 years, it has been ruled by a small elite, an elite consisting of the feudals, the military, and (INAUDIBLE) servants.

Largely, they have disenfranchised the people of Pakistan. And it has been a very narrow elite which has ruled Pakistan, which has neglected human development, which has neglected education. After 60 years of independence, 50 percent of Pakistani adults are illiterate.

JUDY WOODRUFF: Fifty percent?

SHAHID HUSAIN: Fifty percent. Pakistan rates among the last seven in the index of human development of the UNDP.

And Benazir Bhutto, Musharraf, and the entire leadership is responsible for it, because of the neglect of the people of Pakistan and the lack of linkage between the establishment and the masses in general.

JUDY WOODRUFF: Stephen Cohen, given that, why was she the hope that you just described?

STEPHEN COHEN: Well, I don`t say she was a great -- a likely -- I don`t think -- I think she would have had trouble doing what she wanted to do.

But I think she was the most charismatic and I think dynamic and perhaps intelligent leader Pakistan has produced in a long time. And I think she stood head and shoulders above the rest of the politicians in that regard. So, I think she also had good international ties, especially with the United States.

Pakistan`s problem, of course, in terms of democratization and liberalization, is that two of its major foreign friends, the U.S. and China and Saudi, two of them are not interested in democratization. Nor are they interested in deep social reform.

JUDY WOODRUFF: So, you are saying that the forces, that -- that what?

STEPHEN COHEN: That she was bucking the Pakistan army, which is retrograde in terms of its understanding of Pakistani development, which is totally India-focused, and had no interest in what`s going on in the country, except control. And, also, Pakistan`s external support is the Chinese and the Saudis, who are not terribly supportive of a democratic Pakistan.

JUDY WOODRUFF: And you`re saying she would have been strong enough to stand up to them, whereas there may not be anyone else who could do that.

STEPHEN COHEN: She would have given a good fight. And I think she would have held her own. She understands how the world operates. And I think she was intelligent enough to manage. She would have made compromises, but I think she would have made some progress as well.

JUDY WOODRUFF: Shuja Nawaz, we keep hearing there is no obvious successor to her in her political party. Who does take her place?

SHUJA NAWAZ: That`s the big question, because she was chairperson of the People`s Party for life, and really did not allow the emergence of strong leadership underneath her.

There are obviously some leaders whose names have emerged who have been mentioned. The most famous of them is Aitzaz Ahsan. Unfortunately, he is still under house arrest.

JUDY WOODRUFF: I`m sorry. What is his name again?

SHUJA NAWAZ: Aitzaz Ahsan...

JUDY WOODRUFF: Yes.

SHUJA NAWAZ: ... who`s the president of the supreme court bar association and a member of her party. But he is a under house arrest. He is probably the most well known within the country and now outside the country. But he cannot operate.

JUDY WOODRUFF: Well, given that, and given what we discussed earlier, Mr. Sharif saying he is not sure he is going to participate in the elections, what happens going forward, Mr. Husain?

SHAHID HUSAIN: I think it will remain confused.

It means that we don`t expect resolution of all issues. But it`s very -- extremely important that we understand that this leadership cannot deliver the freedom of Pakistan from the past. You do need a crop of people. You do need younger people, because this leadership has been tried and has failed Pakistan. The only hope we can have...

JUDY WOODRUFF: You mean the Musharraf leadership?

SHAHID HUSAIN: Pervez Musharraf, now, actually, Benazir Bhutto. They had their chance. Don`t forget that her own government was marred by tremendous corruption. Don`t forget that the Afghan rightists, the Taliban were invented by her minister of interior, by her minister of interior.

JUDY WOODRUFF: Invented by her minister of...

SHAHID HUSAIN: Yes, and were patronized by her. They came from madrassas in Pakistan. In fact, the movement of Taliban was started in her -- during her government, patronized by her government.

So, let`s not forget that while Benazir Bhutto, Nawaz Sharif talk about democracy, their own parties are undemocratic. They didn`t allow (INAUDIBLE) too much.

JUDY WOODRUFF: And I want to come back on that similar point I asked you a minute ago. Given that, how could Benazir Bhutto have taken this country in a different direction? And...

STEPHEN COHEN: Well, she might have presented the slide downward, but in terms of rapid movement in a more modern direction, towards democratization, more equal society, it would have been very incremental.

But, again, politics is a matter of inches, not miles. And I think she would move Pakistan -- or she would have tried to move Pakistan a matter of inches. And she would have found allies in the military and in the civil society as well.

JUDY WOODRUFF: And let me come back to that first question to you, Steve Cohen. And that is, why does this matter so much to the rest of the world, to the United States, to the wider region, to the fight against the terrorists, the Islamic extremists in Afghanistan?

STEPHEN COHEN: It`s not just that a democracy or a proto-democracy Pakistan has lost a leader by assassination. That resonates in the U.S. and a lot of other countries. It`s that the future of Pakistan is at stake. And if Pakistan continues in its present direction, it could be and will be the most dangerous country in the world. That was the conclusion of...

(CROSSTALK)

JUDY WOODRUFF: Because of nuclear weapons?

STEPHEN COHEN: Nuclear weapons, export of terrorist, spinning off ethnic groups, losing parts of its provinces, mass migration to India. A whole bunch of things could happen. And that`s not a -- that may be a worst-case outcome, but it`s increasingly a likely outcome for Pakistan.

JUDY WOODRUFF: And agree that`s the likely outcome?

SHUJA NAWAZ: Well, I would have seen the elections and her participation in it not as an end, but rather as a transition, a transition both for her, and for General Musharraf himself, because it`s quite clear that the forces that have now been unleashed within Pakistan of discontent, particularly amongst the lowest economic strata in the population, are not going to be resolved by this kind of a command-and-control system, under which Pakistan has been governed for so long.

You need the forces of democracy to slowly take root. And, until they take root, the future of Pakistan is going to be filled with turmoil.

JUDY WOODRUFF: Given all that, in the short run, and then in the longer run, what should the U.S. posture toward Pakistan be?

SHAHID HUSAIN: I do not see a quick fix to Pakistan`s problem.

There`s the long haul. And unless Pakistan and its partners address the fundamental issue of deprivation and lack of linkage between the state of Pakistan and the people of Pakistan, the problem will not be solved.

So, don`t think for a minute that there is quick fix. It will remain confused. It will remain volatile. But we have got to look at the whole issue of human development in Pakistan and work for it not for years, but decades. This is a situation that has developed for 60 years. And there is no quick fix to it.

JUDY WOODRUFF: No quick fix?

SHUJA NAWAZ: I agree with that.

And I think, as far as the U.S. is concerned, the U.S. needs to be much more unequivocal in its support for developing systems and institutions, like the judiciary, like the media, like political parties and not...

JUDY WOODRUFF: And you`re saying it hasn`t been that?

SHUJA NAWAZ: It hasn`t been that.

When the crunch comes, the United States traditionally -- and history has proven this time and again -- has taken the short-term solution, supported a dictator, supported an autocrat, and not gone for the long-term system-building.

JUDY WOODRUFF: Steve Cohen, short term, long term, what should the U.S. be doing?

STEPHEN COHEN: Short term, we should make a special effort, send the vice president, send another senior official to meet with Pakistani politicians, not just with Musharraf, but the politicians, and tell the army that, this time, there should be a reasonably free election.

The election should have credibility, could, in a sense, put Pakistan in a path where the constitutional rails are again in place, because they have disappeared. There`s no rule of law in Pakistan.

JUDY WOODRUFF: And why would they listen if they haven`t listened before?

STEPHEN COHEN: Well, we have alternatives. We have both a huge assistance program to Pakistan, which we could manipulate, but we also have other friends in the region, Pakistan -- India in particular.

JUDY WOODRUFF: Ten billion dollars over the last...

(CROSSTALK)

STEPHEN COHEN: There`s an India option. There`s a lot of options we do have. And, of course, Pakistan needs us for many reasons.

And I think it needs us primarily because we`re the major outlet to the West. On the other hand, the Saudis and the Chinese are not going to be urging democratization or liberalization. They are going to be urging control, repression. And you may well see Pakistan in the near term with a much more brutal military dictatorship than that we have seen in the past.

JUDY WOODRUFF: I think I hear you all describing a long haul here.

SHUJA NAWAZ: Thank you, Judy.

JUDY WOODRUFF: All right, Steve Cohen, thank you very much.

Shuja Nawaz, we thank you, and Shahid Husain.

Gentlemen, we appreciate it. Thank you very much.

Again, the major developments of the day.

Pakistan opposition leader Benazir Bhutto was assassinated. The attack drew world condemnation and sparked riots in several Pakistani cities.

We will see you online and again here tomorrow evening with Mark Shields and David Brooks, among others.

I`m Judy Woodruff. Thank you, and good night.