at pictures of himself. interpol after him for days, he's chargeded with first-degree murder in canada, so the extradition process not likely underway, but just about to get underway. the canadian police saying we have our program. wolf blitzer now with the situation room. the war for wisconsin, voters getting ready to recall controversial republican governor scott walker and replace him with a democrat. it's labor unions versus tea party in a fight that's aracketing some big money and it could be a dry run for the presidential election in november. raul castro's daughter talks about a scenario of a u.s.-cuba prisoner swap. and how two top obama

administration officials supposedly stood chest to chest like a schoolyard fight. a new book tells of tensions in a white caught up in a war against terrorism. i'm wolf blitzer, you're in "the situation room." early hours away from a critical vote in wisconsin, an extraordinary i attempt to develop scott walker. the recall was -- stripping most public unions of collective bargaining rights. this war for wisconsin pits unions against tea party loyalists and it's attracted millions of and millions of dollars in outside money. it's also seen as a dress rehearsal for the presidential vote. let's go to the scene.

madison's ted rollins is at the scene. >> reporter: you can -- a lot of an tigs pace when the vote takes place. voters have been inundated months, 16 months of eeds and money being spent in their states and the core of this is about unions. we talked to two teachers who are on opposite sides of this vicious battle. michelle and john are teachers in madison. craig is a teacher in milwaukee. they are opposite sides of the political showdown in wisconsin. >> we met michelle and john protesting at the state capitol, they were furious with scott walker and his new bill to cut education funding and unions collective bargaining rights. >> emotions were raw, it was shocking. >> reporter: craig saw it from the other side. he thought walker's plan had

merit. >> i think in the long-term, it will be good for the state and good for education. despite weeks of protests, walkers budget bill known as an act pro tem passed. craig says he's only one of a handful of teachers supported it. >> i think fundamentally what scott walker is doing is going to help the state of washington in the long-term and education in the long-term. >> i don't know of any teachers in madison or anywhere who would want larger class sizes, what would want less resources being poured into the classroom. >> reporter: governor walker is in a recall election between milwaukee's mayor tom barrett. the people of wisconsin have been bombarded with political ads.

milwaukee talk radio host jeff wagner says the last 16 months have divided the state like never before. he says there doesn't seem to be any middle ground. >> people are down to their last nerve, everybody is just so intense about this. i mean you hear it from the caller, you hear it, it's out there on both sides. >> reporter: wagner says at times the rhetoric has been ugly. listen to how our teachers blame both sitds for getting out of control. >> i have heard hymn being rivered to as a natty. >> it's governor walker's side who comes in and does taunting and poking and trying to incite fights. >> make reference to republicans and tea party types as the barbarians at the gates. >> yelling at any children, you're not communists, you're socialists. >> reporter: whether scott walker keeps his job or not the battle for unions is almost over.

>> both candidates wolf are canvassing the state in a last-ditch effort to get people out to the polls. right now the polls show walker with a slight advantage, about three points above the margin of error, so it will come down to voter turnout. >> here's a question, the president of the united states, a democrat, he was in the neighboring state of minnesota the other day, he then flew over wisconsin to go to his home state of illinois, didn't bother to show up in wisconsin any time during these past several weeks and months, so what's the explanation, why didn't the president get involved and try to help the democrats? >> well, we saw bill clinton here over the weekend, but not president obama and a lot of people here have brought that up. why didn't the president come and lend some support to tom barrett, there is a close

election, there is a lot at stake, the reason being, we don't know for sure why they decided to get into this, but this is a state issue, and then at this point it looks like walker is going to retain his jobs if the polls show that and maybe the president decided not to dip his toe into this for political reasons, because in the event that walker did go on to win, it may not translate as a political good move for him. a lot of people in wisconsin were expecting a possible individual sit from the president, didn't happen at all and it doesn't look like it's going to happen today or tomorrow. in fact he has said very little about this whole thing. >> we'll have live coverage at 9:00 p.m. eastern tomorrow night once the polls close in wisconsin. the obama campaign today the launching a tough new ad in battle ground states doubling down attacks from mitt romney as governor. it offers some grim statistics from his reported in washington. and he's warning hiss economic

policy didn't work then and it won't work now. jessica yellin has got more details. what do you know, jessica? >> reporter: in this new ad, the obama campaign tries to take a two by four to romney's claim that he was a job creator when he was governor of massachusetts and includes some striking choices beginning with the first case you'll see in this ad here. >> instead of hiring workers from his own state, romney outsourced call center jobs to india, he cut taxes for millionaries like himself while raising them on the middle class. now when mitt romney talks about what he would do as president. >> i know what it takes to create jobs. >> remember we have heard it all before. >> i know how jobs are created. >> romney economics. it didn't work then and i won't work now. >> reporter: so the message is clear, the story is a bit more

complicated, first on outsourcing as governor, romney vetoed a part of the budget that basically said that the state cannot do business with companies that in turn outsource jobs, he didn't think it would save the state money, and it could still go to other states. on the claim that romney built up debt when he was governor. well, you know, states have to balance their budget every year, but when o' -- you get the picture what they're trying to say that as governor his record was not as clean as he claims it is. so big picture, this is a huge ad buy for the campaign, roughly $10 million we're told in nine battleground states, that's a real commitment to try to tear down that claim by governor

romney that he was a jobs creator. >>s there the hypocrisy on the team romney right now. >> david axelrod is saying there's breathtaking hypocrisy, that's a quote, by the romney folks because some of his supporters are insisting, reporters should not look at governor romney's first year in office when calculated how many jobs he created. they say he inherited a terrible economy. when the romney people are evaluating president obama's term in office, they count the president's first year when he inherited a terrible economy. so david axelrod saying that's an extraordinary double standard and trying to drive that point home, why are they trying to live by this double standard. one thing i'm home by campaign supporters, they would like to get beyond the finger pointing so they could have a debate over ideas and different vision force the future, clearly we're not there yet. >> we should hold our breath

waiting for that other debate to get going. jessica, jack cafferty is joining us for "the cafferty file." >> the jobs report on friday wasn't exactly glowing testament to the policies of the current administration. what a difference four years make, when barack obama ran against hillary clinton, he was unstoppable. he generated the kind of enthusiasm among voters that is usually reserved for rock stars or hollywood celebrities, not for politics. peel couldn't get enough of his messages of hope, change and yes we can. four years later a lot of that optimism and excitement are gone. there's a column in the "new york times," called "dreaming of a superhero." the president who started off with such dazzle now seems unable to stimulate the economy or the voters. friday's dismal jobs report

triggered a stock selloff. as for the voters, a lot of them are disgruntled, including many in his own base. they're frustrated the president didn't followthrough on key promises like closing guantanamo bay complete lly ending the war in the middle east or getting tough on wall street. there are anti-obama ads coming from the left that quote cancer in the presidency. these are from liberals. part of this is due to the ugly reality of government, of course. but you can even see it in the president's campaign events. there were 4,000 empty seats in an ohio arena that seats 18,000 when the president actually officially relaunched his re-election campaign. here's the question, when it comes to president obama, what happened to the magic of 2008?

go to cnn.com/caffertyfile and post a comment on my blog or go to "the situation room's" facebook page. the daughter of the cuban president says she backs president obama. christian amanpour has an -- david axelrod and ereck holder. what happened? plus you're going to find out what democratic leader runs for president in 2016. one of the best things about state farm is our accessibility.

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my recent interview with the american allen gross imprisoned in cuba cast his name back into the limelight. now the daughter of raul castro is proposing a prisoner swap. first listen to what mariella castro told christiana. >> one of the issuings right now a allen gross, who you know where are well, you know about his case you've been asked it many times. let me show you what he said about the prisoner's mother.

>> i have a 90-year-old mother who has terminal lung can serks and she's not getting any younger, and she's not getting any healthier. i would return to cube bara, i return to cuba if they let me visit my mother before she dies. >> translator: allen gross has been granted everything he asked for. he's been able to see his wife. he's been able to have matrimonimat moean don just -- very long sentences that must be right. the six must be released, both the five cubans and allan roesz. >> you're saying that they should be released?

>> translator: of course i'm referring to the five cubans and allen gross. i believe this would be the happiest solution for all involved. >> christian is joining us from new york. did you get a sense she was speaking on behalf of her father, speaking on behalf of the cuban government, just throwing out these ideas on her own? >> i don't think she was throwing out ysd on her own. she made it perfectly clear that she's speaking to an international audience. she's not representing the cuban government, but she obviously has the ear of the cuban president, her father. i asked her about a humanitarian visit, humanitarian dispensation, she said we're not talking about partial solutions, but she kept saying i want to see all of them released, that would be the best thing. >> the u.s. government t state department and they have

rejected any swap, any exchange of these five cuban prisoners for allen gross. i don't know if that's going to have an impact, at least they're talking about it to a certain degree. when you spoke to her about u.s.-cuban relations, but also the impact of president obama. let me spray this clip. >> did you expect more from president obama or has he gone as far as you expected him to go on the cuban issue? do you think he wants to lift the embargo and that there could be a solution between cuba and the president united states? >> i believe obama is a fair man and obama needs greater support to be able to take this decision, if obama counted on the full support of the american people, we could normalize relationships, we could have better relations than what we

had under president carter. >> do you want obama to win the next election? >> translator: as a citizen of the world, i would like him to win. seeing the candidates, i prefer obama. >> did she give you any sense of what cuba would do -- this is by the way an endorsement, i suspect, the obama campaign is not thrilled necessarily to v but did she give you a sense of what might happen over the next five months if the cubans wanted to do something to improve their relationship with the united states? >> i think like many people around the world, nobody expecting anything to get done about these massive political solutions before the election. everything is on hold in that regard, we pressed her not necessarily on what might happen between the u.s. and cube barks although she said that the parameters were there to improve relations and frankly to mend relations. she put everything as many cuban

officials do in the parameters of the embargo, this 50-year economic blockade that the cubans use as a reason and a justification for just about everything. so she says when that is gone, and as you know that policy has spectacularly failed if the idea was to get rid of the castros, it didn't work. and if the castros are changing so much in the cuban-american community and if the younger people don't have the same hard line attitudes of the old people, but i also pushed her on what's going on inside cuba. remember, in cube barks gays used to be put in reeducation camp, during the aids pry crisis people were into this -- she says that for instance, the idea of civil unions and accepting that is going to be brought up by the cuban parliament, but i asked her about political

democracy and pluralism and dissent. she said these are the things that we need to be working on, she point to what raul castro has done since he took over, a little bit of free enterprise, ability to buy your farms and properties and vehicles and things like that and have small businesses. but on the political side, that too needed to be worked on and to be expanded. interesting also in the issue of travel, as you know very well, cubans can't leave without special permission to leave and come back. >> very interesting, i think behind the scenes, some stuff is unfolding, especially in connection with the allan gross case. christiana amanpour -- we're going to talk to the

president's willingness to go after bad guys around the world and we're also go to ask him about an alleged fight, almost a fitting fight that broke out between the attorney general of the united states eric holder and the top obama official in the white house, david axelrod. what really happened, stand by. [ male announcer ] now you can swipe... scroll... tap... pinch... and zoom... in your car. introducing the all-new cadillac xts with cue. ♪ don't worry. we haven't forgotten. you still like things to push. [ engine revs ] the all-new cadillac xts has arrived, and it's bringing the future forward.

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new book tells us about the potential of capture of al qaeda. the book is entitled "kill or capture". daniel, thanks very much pore coming in. let's talk about one chunk of the book that's getting some attention out there, a battle between the attorney general of the united states eric holder and david axelrod. the two men stood chest to chest, it was like a schoolyard

fight back at their shared alma malt ter. white house staffers caught in the cross fire averted their eyes. jarrett, talking about valerie jarrett materialized as things got hot. she pushed her way between the two men for a sense of decor rum for the two men ordering them to take it out in the hallway. tell us what the background was, what are you learning in your report? >> well, this is really an extraordinary scene. there's always a sort of tension between the justice department and the white house. even a healthy tension. got an attorney general who's supposed to be -- at this particular time, the sort of policy backdrop is back that the white house is very preoccupied with the economic recession that we're still n they want to get

health care passed. the attorney general is trying to fulfill the president's promises on some of these counter terrorism issues, closing guantanamo, and so there is kind of tension over these issues. the other issue is that eric holder had stepped off message a couple of times. the last thing the white house wants is distractions when they're trying to focus on their priorities. what happened was that david axelrod really at the behest of rahm emanuel, summons holder to media training at the white house. it turned out to be kind of a murder board where you prepare a principal, a cabinet secretary for going on television or congressional hearings. and he brought him in and then they started firing questions at him. this made holder not particularly happy, he felt like he was being humiliated. he net like they were saying,

look, you can't do politics and you have to learn how to do politics. but attend of this meeting, david axelrod said we want to put someone on your staff, we've got someone who has a finally tuned political ear and you need someone who can communicate and coordinate better with the white house. holder was not very happy about this. >> are you saying, daniel, you're right they were chest to chest, were they about to start physically exchanging punches? >> i think it's doubtful that they were going to start throwing punches. what happened after that murder board meeting was there was a cabinet session, a cabinet meeting in the white house. axelrod came out in the meeting and he had heard that holder and his aides were trying to interfere with the operations of the justice department. which would be a real no-no. no evidence that that's case,

but he confronted holder and he said, look, i'm not interfering with the internal operations of the justice department. i'm no karl rove who had been accused of that during the bush. holder was taken back by the accusation, they were right up against each other and they were yelling at each other. and valerie jarrett materialized and thought this does not look good and told them to take out out into the hallway. unlikely they were going to start throwing punches. >> axelrod was on face the nation yesterday with bob she e schieffer and here's what she said. >> eric holder was a great friend of mine, we grew up together and we may have gone toe to toe back in the day. i respect him, i obviously never

tried to interfere in anything that he did. never talked to him about a governmental matter or a justice department matter in all the years i was in it white house. >> you want to respond to what we just heard? >> to me that sounds like confirmation, certainly not a denial and it's what i would have expected him to say. let me put this in a little context, because i think it's important. the attorney general t white house, they were dealing with brutally difficult issues, these are issues that involve security versus liberty, politics, versus principal and in some ways, you know, both sides are right. or neither side is right. they're very, very difficult issues and when the issues are that difficult. there tends to be a little more personal animosity than there would be if everyone was on the

same page. i think it's natural, i think it's even healthy. what the surprise is we all heard about no drama obama during the campaign. there was much more of this kind of personal animosity and drama in the white house than there was when i started reporting this book. >> a senior justice department official tells our produce ear it the justice department that they declined to answer about the reported confrontation between holder and axelrod, the justice department official simply noting that holder and axelrod are friends and they enjoy a great working relationship but really wouldn't confirm or deny the report when given a flat chance. let me repeat the name of the book. "kill or capture." thanks very much for coming in. a "sex and the city" star in a controversial fundraising ad for president obama, is that the right way to win voters?

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let's get right to our strategy session. thanks very much for coming in. if you were watching, i don't know if either one of your were watching the mvd awards last night. you would have seen this commercial pop-up from sarah jessica parker from "sex and the city," watch this. >> the guy who entered the war

in iraq, the guy who said you would be able to marry anyone you want, and the guy who created 40 million new jobs president obama and his wife are coming to my house for dinner. go right here right now because we need him and he needs us. >> i'm barack obama and i approve this message. >> what do you think about the strategy, george clooney, sarah jessica parker, what do you make of this as a former top presidential political strategist? >> i think it's about more about trying to get the image that young people, that they really need to get the young vote of. i don't think it's anything that's going to change the direction of the campaign at all. but on the margins, it can be helpful and if you look at that ad, it was not so much to get people to vote for obama, but to

get people that were already for obama to get more excited about it and to feel like they're a part of something. i think it was a slight positive, if it were romney, it wouldn't drive me crazy, but i would rather have it than not. >> what about this technique in presidential commercials? >> i think it's probably a smart thing to do. it's not necessarily going to help him with voters, it might drive up intensity of younger voters a little bit and he's looking for that. but it's going to help him with fund-raisers, getting a lot of young people out there active on social media, active on the internet, building a community of those folks, getting them to throw in a few dollars each helps and campaigns would rather have the fund raising than pay a little bit of a price i think politically. what the president doesn't want to do is look like a show horse instead of a workhorse when you're facing critical times, he doesn't want to look like all president and no gift wrapping

inside the box. he would rather have the money and the support. >> what do you think of these democrats, james, already starting to encourage hillary clinton to think about running for the presidency in 2016. nancy pelosi, ed rendell speaking of it and the former president of the united states not necessarily ruling it out. you know the secretary of state rather well, is she going to run in 2016? >> i wanted her to run in 2008, so obviously i want her to run in 2016 but we have an assignment and that's to get the president reelected. a lot of democrats, me being one of them would like to see her run again. but my guess is she'll finish out her term as secretary of state and take a breather. >> she's worked very, very hard.

alex, our new cnnorc poll, we have these new favorable numbers that came out, her favoritability is at 67%, and joe biden is at 41%. joe biden said that he would think about running in 2016. what do these numbers say to you? >> i think there's something behind the -- obama is an academic elite, he's aloof, he's distant from voters in many ways, joe biden is no six pack. he can go to ohio and get that ticket. i think he's an asset and i think he's a force of the democratic party in the future. i think hillary clinton was running during this time. just to hear president clinton say mitt romney is a sterling

businessman, i think it shows you there's divide in the democratic party between pro business and anti-business. >> i think romney was a businessman, he made a lot of money for the people that invested in his company, what he didn't do was create 100,000 jobs as you claim. when you claim something when you run for president then people will claim the other side. he did create wealth for his inve investor, if he would just had run as being someone who created wealth in investors, he would have told the truth. but job creator, not too much. >> james probably has more business experience than his president does. but if you're a business guy, what you take home every day at the end of the day is a ledger, what it has is profits, because that's what allows you to hire people and create job.

>> may i say, alex, when you're in a campaign, if you claim you created 100,000 jobs, if you put your job creation record at the center of it. you shouldn't criticize people when they call you out on it. you see that's the difference. in a campaign you can't do that kind of thing. i know about a ledger sheet, i also know you can't do this kind of stuff in a campaign and that's what romney did. if he said i gave a 22% return on my investments, it would have been fine. >> we should have this debate at staples where they have a job. >> that debate is going to be played out many, many times. >> this note to our voters, don't miss my one-on-one interview with bill clinton. send me your suggested questions on twitter or to "the situation room's" facebook page. we're unveiling cnn's new

electoral map right now as well. let's bring in john king. we're five months from election day, how does the man look right now? >> the reasons those debate between james and alex are getting more fighty is that we have a map right now that looks like busch versus gore than bush versus mccain. governor romney at 206. the dark blue states, those are strong obama states, the light blue states, the lean obama states. what do you have here? you have seven tossup states, of these seven tossup states right now, wolf, 85 electoral votes in those seven states. if nothing else on this map changed, president obama only needs 23 of those 85 electoral votes, and he's the next president of the united states.

he could do it just by winning the state of florida. just florida would get obama the presidency. of course this is unlikely to be the map in the end. governor romney has to get 64, if you do the math, so he has a harder climb. probably win florida, probably win ohio, get to a point where you're here, got to pick up ohio, got to pick up new hampshire, maybe it's out west. both campaign also try to change the map. let's go back to where we were in the beginning, put florida back where it was. put ohio back where it should be. what does romney want to do? he would love to turn that back to a tossup. he would love to say mif michigan is in play. that's 16 electoral votes. you remember george w. bush saying twice i'm going to get pennsylvania. that's another 20 electoral votes if governor romney can put it in play. right now we lean at romney,

it's 11 electoral votes, the obama campaign thinks it might pull that into tossup category so. a number of fascinating scenarios, they may br break another way in the end, but now you have a very competitive electoral race with a slight advantage for the president. >> we're going to have a lot more on that coming up at 6:00 p.m. eastern on john king usa. why new york may soon stop going after small time pot smokers. stand by, new information coming up. [ lane ] your anti-wrinkle cream is gone...

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new york may soon stop going

after what are described as small-time pot users. the governor andrew cuomo is urging lawmakers to decriminalize possession of small amounts of marijuana. erin burnett is going out front on this story. erin, mayor bloomberg, is he not backing the cuomo proposal? >> he is, he is. and this has been a highly controversial situation in new york. a disproportionate number of minorities have been frisked in part due to drug possession, and most of them have been completely innocent. that's part of the reason why some say the mayor the jumping on board of this. we're talking about 25 -- it's an interesting proposal because it puts new york, one small step, when you look at the line we're crossing here, it could be one very big step towards legalizing marijuana and drugs. and in this case we like to say do the numbers add up and in this case they really do. it's pretty stunning. we did some nubs here, the bible

report on this is done by kato institute. three other economists have signed on to the 50-page study on decriminalizing drugs. but if you look at marijuana alone, if we were to legalize it in this country. we would save $8.7 million for things like stop and frisk and police enforcement. then you tax it like you tax, say, alcohol or tobacco and you get another $8.7 billion. that's $17.48 billion in this country. the numbers still are worth showing. the total $41 billion saved from police, $47 billion or just shy of it in revenue from taxation, $88 billion if you were to legalize harder drugs like cocaine, heroin in addition to pot. but for pot, wolf t numbers really do add up.

it would make sense at least from a pure police and enforcement situation to go ahead and legalize it. >> so if mayor bloomberg have his way, you could walk around with a small amount of pot, but if you get busted with a soda that's 32 ounces you could go to jail. >> which of those things is less healthy, that might be an interesting question. it may be the big gulp, wolf. >> thank you very much, erin. we'll see you at 8:00 p.m. eastern tonight. a senior chinese official is reportedly arrested for allegedly spying on the united states. so how much damage might he have done to china's own intelligence operations. we asked brian todd to investigate. and 60 years on the throne for queen elizabeth. there's a worldwide celebration junds w underway right now. we'll have special coverage

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jack's back with "the cafferty file." >> the question this hour is when it comes to president obama, what happened to the

magic of 2008? eric writes, with the democrats holding majorities in the house and senate back then, president obama had a blank check. and a rare political opportunity in the hands of a more qualified individual, this would have guaranteed him a second term. what we got was an up popular health care bill, an effort to save gm and chrysler and a hike on the debt ceiling. president obama just points the finger and becames someone else. earl writes the republicans made it impossible for him to do anything. do you think that the first black president was going to have an easy go to it. obama piled $5 industrial yoc$5 the amount we already owe. why budget when you can borrow. future generation also look back at us and wonder how we would have let this happen to them. debt is killing europe, it's

killing us and it's killing the obama magic. yes roam says it's simple he ran on change. and unless he does something drastic, he will lose this. guy never had the leadership quality that a lot of people thought he had. j.p. writes he's still a magician, he makes money disappear with nothing to show for it. and magic is based on illusion, obama's magic was just that, an illusion. >> wolf, we're all happy to know you haven't lost your magic. >> thank you. >> and you have a lot of magic as well. meanwhile thousands of fires are burning across britain right now with queen elizabeth herself lighting what's called the final beacon. we're going there live, it's a dramatic part of the jubilee celebration.

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[ male announcer ] new icy hot arthritis lotion. powerful encapsulated menthol gets icy to dull pain, hot to relax it away. power past pain. and you're in "the situation room," happening now, the world erupts in celebration of queen elizabeth's 60 years on the throne. as we speak, a ring of fire is being lit all around the uk and just minutes from now, we're going to bring you the queen lighting the historic national beacon. we'll bring that to you live. and a spy inside from the united states arrested inside china. we'll tell you how serious this reported intelligence breach may have been. and it's been conventional wisdom for years and years and years, too much assausalt is ba

your health. but sit true? how too little could actually do you harm. i'm wolf blitzer, you're in "the situation room." a monumented day not just for the united kingdom, but for the world. this hour thousands of torches or beacons as they're called are ablaze all around the uk. not to mention members of the commonwealth, such as australia, new zealand and south africa. to mark the queen's 60 years on the thrown, soon she will take the stage and light the national beacon with a diamond made of glass. cnn is working this historic event from every vantage point. our richard quest is in prince

phillip was hospitalized with a bladder infection today and forced to miss part of the celebration. our senior international correspondent dan rivers is standing by outside the hospital with the latest information. what do we know about this, dan? >> reporter: well, a very short statement's been issued by the queen's press secretary here simply saying that the duke of ed een before row was brought i for a bladder infection. this is the seventh of the hospital in central london, this is the hospital that many royals in the past have been treated at including the prince on a number of occasions. he is understandably disappointed about missing this evening's diamond jubilee concert and tomorrow's engagement. so we have no real idea of how long he'll be in here for or any

updates on his condition. normally this would be a pretty straight forward complaint which could be treated with a course of antibiotics, but i suppose because of his age, he's going to be 91 on sunday, this isn't as routine as perhaps it would be in someone who's younger and so of course they're playing it safe and keeping him in here and check to make sure that those antibiotics do work. >> he's 90 years old now, he's going to be 91, as you say, queen elizabeth is going to be 86 years old. but the bladder infection may be more minor or more serious, but both are seen as being in pretty good shape, isn't that right? >> he certainly seems to be in pretty good form yesterday, extraordinary le really he stood up on the cold in the rain, on that boat in the pageant

yesterday. no sign then that he has been feeling poorly. as you alluded to, he recently had a health event last christmas and had to go in two days before christmas, and had a minor procedure, a stint put in to help the flow of blood to his heart. and that gives you perhaps a sense of otherwise, in what great shape he is for his age. and everyone obviously hoping that the same will happen here, that as unfortunate as the timing is, he will be able to make a complete and speedy recove recovery. >> and we certainly hope he does. let's stay in london right now, richard quest is joining, becky anderson is joining us as well. richard first to you, how important would you say prince phillip is to queen elizabeth ii? >> i cannot overstate the importance in any shape or form.

prince phillip is the backbone, the rock, the queen has admitted on numerous occasions, exactly how significant he is to her. there is no question, he is the master of his own household, he decided what was going to happen with the family. she deferreded to him on those issues. and even if he doesn't see protocol papers and matters of state, when it comes to the relationship between phillip and the queen, he is the only person who can tell her things that she mibl might not want to hear and they have a relationship of brutal honesty. >> becky, how much of a damper does prince phillips' hospitalization put on all of these celebrations? >> well, it's a really good question and one i put to one of my guests this evening on my show who is very, very close to

the royal family. he said, look, the queen will go on, the show must go on, she would use that term herself. he would have missed the pageant the river pageant a lot more and they would have missed him a lot more than perhaps they would miss him today if he had to not be at one of these events, perhaps the concert and possibly tomorrow's celebrations would be those that he would choose to miss. this is a man who gave up as naval career to marry the then princess. and that was a real love story, but he absolutely loves his boats and that pageant yesterday on the tens, the likes of which we haven't seen in 350 years, he would have been absolutely mortified if he had missed it. and as richard say, they sat for hours yet, in the pouring rain to watch those boats, those

thousand small craft goes by. so if he had to miss any day, i think perhaps today would be the one that he would have chosen to miss, wolf. >> sorry he has to even miss today. richard, we're standing by this where the queen will be lighting what's called the national beac beacon, thousands of these beacons are being lit across the uk, the commonwealth countries, explain to our viewers what this is all about. >> it's a relatively new phenomenon and by they mean 200 or 300 years, and the idea was these beacons would be used to transit messages, so in some cases it would be -- you're familiar one if by land two if by sea, from paul severevere, a that was a way news would be passed and events having taken

place. so in that genre they're doing the same thing, in tongo and south africa, the queenould lik monarchy removed at some point. although even she accepts that will be after the queen's reign, and on we go around the world, south africa, all the other commonwealth countries, right through to the uk tonight. >> the crowds, becky have been really impressive, all over the uk, people are really excited by what's about to happen. >>. >> reporter: yes and the weather will not put them off. we talked about that yesterday when we were down at the street

party and extremely cold and wet on the river, it was just as coiled off the river yesterday. but people were out in their droves, some 6 million in the end attended street parties over the saturday and sunday event and we've got people sleeping on the mall which is the road that takes you up to buckingham palace and there was a church service at st. paul's cathedral and the family going to a number of functions. then on to westminster where they will have a lunch and back to buckingham palace tomorrow, down the mouth where you see people here with whatever they can cover themselves up. the weather is fine at the moment at 10 past 10 on monday night. the forecast is, well, iffy. let's call it iffy for tomorrow. but it really doesn't stop people. people have been out in their droves, waving those flags.

one supermarket chain told me that last week and the week before, one supermarket chain alone sold 400 miles of burptding and half a million flags. people are loving this. >> they certainly are and which have a lot more coverage, including live coverage of queen elizabeth herself lighting the final beacon. these are where the beacons have been lit and indeed they have been lit all over the world in the commonwealth countries as i mentioned new zealand, the commonwealth of south africa and new zealand. we're going to bring you the lighting of the beacon by queen elizabeth. there's other news we're following, including news in china. reports that an alleged spy for the united states has been captured inside the country's government security ranks, brian todd is working the story for us. brian, what are you learning?

>> this could be the deepest penetration into china intelligence since a high level chinese -- lives are at stake and the chaensz intelligence services are said to be boiling over this. from deep inside chinese intelligence, word of a high level breach--suspected of spying for the united states. that's according to the reuters news agency whose sources say the aid had passed information to u.s. officials for several year years. >> what do you think could have been compromised specific live. >> it's highly likely that sitting in a position that he was, he would have had access to on -- >> a china annist at the cia are trying to recover any of their compromised spies right now. a souse tells reuters a spy for the u.s. was recruited for the cia that he was paid hundreds of thousands of dollars for

political, economic and strategic intelligence and that he was detained by the chinese between february and march. >> i think they would be looking at the state security minister, himself, the vice minister who has been put under detention and is being looked at and they will be spreading the net to capture the people who might have been compromised in these case. >> no official comment from chinese firm officials in beij washington. but word of this spy's arrest could have been leaked by chinese officials themselves. he says the chinese government initially allowed websites like this one, china's equivalent of twitter to run the story and then they sensored it. why would the chinese leak this in to send a signal to the americans that they have nailed this apparent spy. and he says the chinese might have wanted to settle scores

internally and externally over the cases of defected chinese dissent. both high profile cases had significant involvement by u.s. officials and both cases were embarrassing to the chinese officials and this could be pay back. >> could this alleged spying have been providing information to the u.s. on this sensitive issue. >> chris johnson says the minister that this official was in is not the heavy hitter in cyberwarfare he says that's handled by to the chinese military. they said this particular guy could have had his hands in part of it but it's basically the military. >> we'll stay on top of it. lots of ramifications. the international man hunt ends for a porn star suspected of killing a man and putting the body parts in the mail.

we'll have the latest on the arrests. also the death toll expected to climb after an horrific plane crash, we're going to is scene of the wreckage, where investigators are trying to determine what went wrong. and queen elizabeth ii set to light the historic national beacon only minutes from now, you're going to see it now right here in "the situation room." [ female announcer ] the power to become a better investor has gone mobile.

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♪... choose the perfect hotel we're awaiting queen elizabeth ii. she's getting ready to light the national beacon as it's called. we're having live coverage in london. stand by for that, we'll also hear from prince charles. he's getting ready to speak as well. lots coming up on this jubilee anniversary of queen elizabeth ii, 60 years on the throne. meanwhile other news we're following, the international man hunt for a canadian porn actor accused of killing a student and then mailing the body parts to key politicians. that man hunt is now over.

the suspect nicknamed the canadian psycho was nabbed in berlin only hours ago. here's the latest on the arrest. what happened here, diana? >> reporter: hi, wolf, hear that huge international man hunt ending up in an internet cafe just about a half an hour from i am now. internet -- on the guy behind the counter said that he recognized him at that moment. he showed him to a computer and then he double checked on his own internet to see whether this man was indeed magnotta, the man who's been all over the national press and the international press and his photo wanted for this grizzly crime in canada where he's supposed to have murdered his lover, dismembered

him, involved that process, m l mailing his body parts to officials and posting it online. the man in the cafe said that he was pretty sure that this was the guy that interpol was looking for. he went outside, trying to hail a police car. he didn't want to call the police in the case it wasn't right. he hailed down a police car. they spoke to magnotta, when he realized the game was up, he said, okay, you've got me. he's now in police custody. >> is he going to stay there or is he going to be sent to canada? what happened? >> reporter: the police in berlin said to my that it will be at least a week and other people are saying it could be mobe -- germany has to issue a warrant to commit to that extradition process and then

magnotta himself has a choice to go to the courts and question that extradition process. so this could all take really quite a long time. and also, there will be sort of investigations into whether he was involved in any other murders or any other crimes, whilest he was on the run from police in canada, wolf. investigators are desperately working to determine what brought down a commercial airport killing all 163 people on board and at least 10 people on the ground. we'll go to the scene of the wreck an in just -- we were expecting to hear from prince charles, he's speak at the event. this is a major moment in this jubilee, all that coming up right here on "the situation room." days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history.

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a suspected drone strike targets militants in pakistan's tribal regions. lisa sylvester is man fonitorin that. >> a -- a u.s. -- it's the 2 1s suspected drone strike in pakistan this year. and the third in three days. u.s. officials say the covert strikes are legal and effective in the fight against militants. and jury selection in the trial of former penn state assistant football coach jerry sandusky gets underway tomorrow. the 68-year-old sandusky has been under house arrest since being charged with sexually abusing ten boys over a 14-year period. he has pleaded not guilty.

and firefighters are battling the large rs wildfire in new mexico. it was formed by two fires that merged last month. all together 241,000 acres have been charged. that's 280 square miles to put it in perspective. authorities say it's only 18% controlled. take a look at this, it's the live picture of the crystal glass diamond the queen will use to twigger the national beacon. that's expected to happen only minutes from now, we'll bring to it you live. [ male announcer ] when this hotel added aflac

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we certainly want to welcome our viewers in the united states and around the world right now. i'm wolf blitzer in the situation. only minutes from now, we're all going to be seeing history unfolding live in the united kingdom where queen elizabeth ii will take the stage and light what's called the national beacon, the final touch in an international ring of fire as it's being described. a set of blaze required in her 60 years on the throne. cnn is covering this from all vantage points, we have all of our reporters and analysts standing by. richard, first of all, walk us through for viewers who aren't necessarily familiar with the beacon lighting ceremony, what we're about to see from the queen herself. >> what're going to see is the queen placing the crystal that you've just been showing this, diamond crystal that was specially cut and has been cut

within an inch of its light. it will be placed within a receptacle and will fire a very large flame into the air and that will be, if you like t final moment of this triumph. i can tell you, next to me here in london in trefalgar square, on the top of the house, two beacons have been lit. that's obviously a marking of what the canadian where the queen has also had a stage, we have seen it in new zealand, in south africa, canada, wales tonight. the idea is a symbol, it is a way of sending the message up and down the land and in this case around the world, and the flame that her majesty will be lighting tonight is a gas powered flame.

is the -- it's the equivalent of the heat and power necessary to boil 4,000 petals, do not ask me how anybody worked that out or how i remembered it. but when the diamond crystal gets put into the receptacle, and the flames whooshs up, that is going to be the cull bin nation of this beacon ceremony. >> when you think about it, the queen will be emerging from this really wonderful concert that invited guests have been allowed to see where you are right now. tell us a little bit about what the concert was all be? >> that's right, and excerpts of that will be shown on cnn in the coming out. and you can probably hear it from where he is. it's outside buckingham palace, you'll see queen victoria

memorial if any of our viewers have been to see the changing of the guard so they'll know what we're talking about. there tonight the most remarkable star studded concert. paul mccartney is playing as we speak. they have been on the roof of buckingham palace singing a song called "our house" and buckingham palace is being lit up tonight. so we look forward to seeing excerpts of that as this concert culminates. it will culminate with the queen lighting the national monument. the queen's pageant master says that he's been overwhelmed by the diamond jubilee beyoacobeac goal was to get 2012 beacons

lit. these are just local social events at the end of the day. they're big, small, there hay be 20 people lighting one, and as you see tonight on the mall outside buckingham palace where the queen will light the national beacon, there are citizen tens of thousands of people. >> we'll have some excerpts from that concert here in "the situation room" later this hour. also we're standing by to see the queen actually light this final national beacon as it's called. you know, richard, a lot of us our viewers especially here in the united states want to know about the involvement of kate middleton and prince william in all of what can you tell us? >> very interesting. the queen adores prince william, prince william can do no wrong in the queen's eyes and the queen has gone out of her way to build a relationship two

katherine, the relationship that she never had with diana, princess of wales. we can discuss and we can debate who has moved, has the queen learned or is katherine a different animal and a different breed? it's a combination of both. but the fact s in recent moves we have seen the queen going shopping at fordham and masons with camilla and katherine, we have seen the queen going to a fashion show with katherine. this tells us volumes about the determination to get it right there. and if you along at that dress that katherine wore yesterday, people are saying they have never seen her looking more spectacular. katherine is the new star on the block, the new kid on the block, but nobody should be under any illusion, the queen is what this is really all about and what the perfect and different in a way,

different to diana is that katherine seems to know instinctively that nothing upstages the queen. no matter how great or how famous or how glitz si katherine is, the queen is where this buck stops as they say. >> as they certainly say, she knows exacts lip where her place is. what about her sister pippa or for that matter prince harry, what about their roles in this. >> prince harry is very much loved by the queen. they were at the queen's side at the pact yesterday and the middle on thes were on a boat very close to that royal barge yesterday. you saw both pippa middleton and her parents, again, not

upstaging by any stretch of the imagination the royal family, but they're there to support katherine as much as anything, and you can see they're very much enjoying what they're doing. i have been watching the audience as i do see the queen approaching the stage, in watching the audience tonight, watching prince harry, prince wrm and katherine for being at that audience. i think we should just let the queen take over at this point. >> she's about to light the national beacon right there at the national jubilee. let's just watch and listen and enjoy this historic moment, queen elizabeth ii, walking up and getting ready to light the national beacon, along with the thousands that have been lit across the united kingdom. listen in.

>> nobomummy. i'm sure you would want me to thank on your behalf all the wonderful people who have made tonight possible. all the performers, the artists, t the musicians, the comedian who is made such jolley good jokes.

and all those remarkable technicians, all 600 of them behind the scenes. without which nothing would happen. and if i may say so, your majes majesty, thank god the weather turned out fine. and the reason of course, is because i didn't do the forecast. your majesty, millions, we are told, dream of having tea with you. quite a lot of people have very nearly had a picnic dinner with you in the garden of buckingham palace.

the only sad thing about this evening is that my father couldn't be here with us. because unfortunately, he is taken unwell, but ladies and gentlemen, if we shout loud enough, he might just hear us in hospital. [ cheers and applause ] your majesty, a diamond jubilee

is a unique and special event some of us have had the joy of celebrating three jubilees with you. and i have the metals to prove it. and we are now celebrating the life and service of a very special person over the last 60 years. i was 3 when my grandfather, king george vi died and suddenly, unexpectedly, your and my father's lives wererr change.

this is our opportunity to thank you and my father for always being there for us. for inspiring us with your selfless duty and service, and for making us proud to be bridge. -- british. proud at a time when i know how many of our fellow countrymen are suffering such hardship and difficulties. proud to be lining the banks of the tems in their millions despite the rain and the cold, proud to be part of something as unique as our common wealth with through your leadership has

given us that sense of unity through diversity. so, your majesty, we offer you our humble duty, and with us three resounding cheers for imagimajesty the queen. hip hip hooray! hip hip hooray! hip hip hooray! ♪

>> ladies and gentlemen, her majesty the queen will now light the national beacon.

[ cheers and applause ]

♪

♪ ♪

♪ ♪

so there you have it, what on amazing, amazing sight as

queen elizabeth lights the national beacon, the music t fire works, simply amazing. max, you were there for the concert, you've been watching all this unfold. give you an eyewitness from the scene what, an evening we have really seen here. i mean, maybe since i am here it is the most spectacular evening i can remember from london and in london for a very, very long time. it was all set, the tone was set, and just before the concert when we heard the news that prince philip had been hospitalized and set a very mixed tone and a determination really for everything to carry on so that the presenters, the musicians, the junior members of the royal family and the queen herself coming out and showing a determined front of just how the front page of the telegraph said to me, wolf, and the headline says the show must go on. i think that encapsulates not just tonight but the queen's

philosophy. she had to be here tonight. an immensely emotional moment at the end when prince charles made a speech and said if we can shout loud enough perhaps prince philip, his father, can hear them in his hospital bed and i tell you, it was the most deafening roar i have ever heard. the stage here shook from the sound of that. before all of that, wolf, a spectacular evening of entertainment and madness and british band playing, it is our house from the top of the roof and stevie wonder, spectacular performance by him and paul mccartney of course and i have to say a tribute from my perspective at least to the projectionist. i don't know if you can see the flag waving. when you get the footage of the concert, throughout the concert, you had the most spectacular projections on the palace and added a huge sense of anticipation and excitement to this and this is a small part of what's going on in london.

the mall is filled right to the end and that happened for the royal wedding with an estimate of 1 million people and there has to be that many tonight. >> becky anderson was watching in london. give me a thought or two. >> i was thinking about the projections as well and i was going to bring those up. i have never seen anything like it, almost like the elysse and you see the union jack across the building and the madness on the roof of the building and with the most amazing projections at one point during the concert as well. i thought it was interesting to see one, how the queen looked. she looked absolutely beautiful in yellow with a gold car di on and to hear prince charles thanking on her behalf the performers and the comedians and the artists in the show tonight, but also thinking of those who are working behind the scenes. he said 600 technicians and a big roar when he thanked them and he thanked gary barlow for

producing the entire event and as well and as he was thanking people on her behalf, on the queen's behalf, you saw paul mccartney on one side, elton john on the other, i mean, the names just went on and on and on. he reminded us that he was only three when king george vi died and his mother was only 26 and as a nation prince charles said this is an opportunity to thank you and he calls her mommy for making us broad to be british and then the fireworks, of course, unbelievable. >> certainly unbelievable. we're getting ready to play the concert for our viewers in the united states and around the world. we'll take a quick break. when we come back we'll hear the concert as this jubilee celebration continues. ♪ dumb luck? or good decisions? ones i've made.

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you saw is live on cnn in the united states and around the world, an amazing culmination at least on this day of this jubilee celebration celebrating 60 years on the thrown for queen elizabeth the ii. richard was watching it. give us your thoughts, they really did a wonderful production>> what you saw was a sincere and authenticity and deepness of feeling and gratitude and integrity of the way in which the british people wanted to say thank you. that spectacle at the end is something i have never seen before and left me thinking what

on earth are we going to do for the olympics? with the palace, the queen, the fireworks, the diamond, the flame, the beacons, it is all being put together with incredible thought and that's what made the last 24 hours so special. >> becky anderson, give us a final thought as well as we get ready for tomorrow. >> i thought you were going to ask me what they were going to do for the olympics and i was going to say i have no idea. i will find out and get back to you on that. tomorrow will be another great day, wolf. we have a service in st. paul's cathedral and you will see the family there and driving through the streets of london as they make their way from a lunch in westminster back to the palace and one of the reasons you will see people on the mall tonight camping out. they want to be there once again for what will be the end of a four-day period of celebrations but of course this is a diamond jubilee year, the celebrations that will go on and we will see

a fly by tomorrow and the queen at the palace on the balcony and we're really looking forward to that as will those on the streets. >> we certainly will have extensive coverage tomorrow as well. i want to leave you this hour here in "the situation room" with some of the sights and sounds from this wonderful concert that preceded queen elizabeth ii lighting the national beacon. ♪ ♪ ♪