world over its support for israel in its conflicts over palestine. the palestinian conflict has dominated 70% of israel's existence as a nation, and it's the reason given for animosity in the arab world against america. but that conflict could be coming to an end if you believe what israeli prime manager benjamin netanyahu told me this week. >> i think there's one other thing. i think that i could deliver a peace agreement. i could get the israeli people to follow me, if i believed that i have a serious partner on the other side willing to make the necessary compromises on the palestinian side. >> would you accept their belief, though, that they should have a country which is contiguous? >> yes. >> not islands here, islands here, but one space? >> yeah. >> no checkpoints? >> i don't want to govern the palestinians. i don't want them as subjects of israel or citizens of israel. i want them to have their own independent state, but a demilitaryized state. >> those words, contiguous and not swiss cheese are essential in the age-old debate over land. arab newspapers seized on those words and turned them into front page headlines. here's one. netanyahu tlars for the first time support for a contiguous, demilitarized palestinian state. that's for a palestinian paper. and another one netanyahu supports establishing a contiguous palestinian state. that word is crucial. in the united states bipartisan. two very different republican and democratic administrations have pressed israel to relent on a contiguous state for palestine. >> swiss cheese isn't going to work when it comes to the outline of a state. >> the palestinian people must have the right to govern themselves and reach their full potential in a sovereign and contiguous state. >> contiguous and no swiss cheese. well, after the controversial statement by president obama that he made right there, contiguous, prime minister netanyahu intentionally refused to use the word contiguous when you addressed a joint meeting of congress. so how sigficant what answer prime minister netanyahu gave to my question. dennis ross has worked most recently for president obama. his career has been focused on bringing peace to the middle east. jamie reuben is a former assistant secretary of state and state department spokesperson. thanks to both of you for joining us. dennis, let me start with you. the palestinian authority responded to what the prime minister said in our interview. they said, quote, an immediate activies, lt of all dismantlg of se stat anance,utof the ty ne to go witthwords. obvisly actions spealoer wds. buearl wayipr somethe >> well, he wasaying in fact obvisly actionspeak louder than words. but clearly the prime minister was saying something when he said, yes, contiguous and no swiss cheese. >> well, he was saying in fact what's going to be essential if you're actually going to produce a two-state outcome. it has to be a credible, viable state and, therefore, the word contiguous is meaningful. i k what youot iterms of palestinian response is that they continue to question whether or not he's really prepared to do that. that's why they impose these kinds of conditions like a settlement freeze saying if he can do that, then that proves he's actually serious. the israeli side of the argument will be you're imposing conditions on me that you imposed on none of my predecessors. i'm making a very clear statement. i'm committed to a two-state outcome. he also used the word an independent palestinian state with you. he was very clear. the word demilitarized frankly back at camp david, back in the clinton parameters, we always operated on the premise that we were talking about a nonmilitarized palestinian state so that is something that has been consistent over time when we talk about a two-state outcome. >> jamie reuben, let me ask you because this is so crucial and obviously there aren't talks going on right now but the prime minister has now moved the line but i want to throw up a map for people to see. 1967, orange you see, that's the palestinian area. and now you see how it is. it's swiss cheese right now. so how do you get that today map to be contiguous? and obviously gaza, we're not even talking about that, whether that would be included in the definition of the term. >> well, that's right. i think the way you get the pieces of the palestinian territory attached to each other is some of the settlers have to go back to israel. and i think the reason why the palestinians focus on the issue of settlements is because they regard that as a indicator of whether the israeli leader in negotiations is prepared to do the hard things, namely to get all of those hundreds of thousands of israelis who have been given special privileges to live in the west bank, whether he's prepared to see them come home. obviously big chunks of the west bank that israel has settled would be part of israel in exchange for traded parts of israel. that's always been an understanding between israelis and americans and palestinians. but we are so far, erin, from a negotiation where this could be worked out. i would have to say i don't know if dennis would agree with this, but certainly in the last decade, my observations, we -- it's very hard to envision right now a ceremony on the white house lawn with president obama, prime minister netanyahu and whoever is the palestinian leader negotiated and completing a peace agreement. those kind of ceremonies happened a lot 10, 15 years ago. but we are so far from that for a whole bunch of reasons, one of which is the debate over settlements. >> and dennis, let me ask you a question. let's just -- a fair point that it isn't going to happen. even if he's moved the goal posts closer. but let me ask you this. let's just say that there was a peace deal. what would happen, because so many people -- governments in the arab world cite this conflict over the palestinian issue as a reason for animosity and frustration against israel and against the united states. let's just say it was solved. would there really be peace in the middle east or would this be exposed as a fig leaf that it really was? >> well, i think it's not that simple a choice, because on the one hand you would remove what is an enduring historic conflict, you would remove what is a symbol of conflict and remove a grievance. but i also think we have to have a perspective here. the palestinian conflict with the israelis is not the reason that we see a huge conflict taking place within syria. it's not the reason you have revolutionary upheaval in egypt. it's not the reason we've seen a fundamental transformation taking place in tunisia. there is revolutionary upheaval throughout the middle east, or at least major parts of it, that are disconnected from this conflict. one of the big sources of frustration for palestinians today is that arabs are preoccupied with the relationship they are going to have with their rulers, not with the palestinians. the world is heavily preoccupied both with the arab upheaval and with iran and not preoccupied with them. so would it be an important thing to achieve and end this conflict? absolutely. would it transform the region? no, because we see an upheaval that is transforming it. being accused of spying on high-ranking officials but the scandal is here in the united states. and a major development in the trial of john edwards. cell phone conversations between him and his mistress. and rupert murdoch making a surprising admission during the phone hacking trial today. that . but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪ [ male announcer ] the citi thank you card. earn points you can use for travel on any airline, with no blackout dates. internet retailer amazon reported numbers today and they were way better than anybody expected. north american sales alone up 36% from a year ago. also you buy a digital product, like an ebook, most of the amazon products that you buy get shipped to you. so you think that's great for ups, which reported today that online sales was a big reason it shipped a billion packages in the first quarter. a billion packages. that brings us to our number tonight, $9.45. that's how much revenue u.p.s. made per package it shipped. it sounds like a heck of a lot of money, but it's actually well below the average for last year. one of the reasons the number isn't higher is because of what people buy online. people are buying clothing, books, small electronics and they're buying all the time instead of all at once, which puts u.p.s. in a rather grim position because there's more things being shipped, but they can't charge as much per package because the packages are lighter and people say, hey, i need those cotton swabs, i'll get them in a week. so pretty interesting. good for amazon, not so good for u.p.s. now a story about the mysterious murder of a british businessman in china. it's cost the job of a powerful communist leader who was once viewed as possibly the next president of china. his wife is now the main suspect in the british man's death, suspected of poisoning him with cyanide. the whole scandal has rocked the chinese government to its core with constant rumors of a coup in beijing. today another strange twist. there are new details coming out from "the new york times" that bo was actually spying on the chinese president. we actually joked about this on our show and said this is what it was going to be, he's a spy. we thought it was a joke. through all of this their son, a graduate student at harvard, has been out of the public eye until now. here at harvard's iconic campus, the scandal that has turned the chinese communist party upside down is playing out ivy league style. this is where 24-year-old graduate student studies public policy and where he's tried to keep a low profile in this offcampus apartment in the weeks after his family's secrets were spilled out on the front pages of newspapers around the world. >> it's very rare for someone to take on a persona like that at harvard. >> he has been portrayed as a playboy, the privileged son of a powerful leader. at home at china and at boarding school in england, he developed a reputation as a spoiled party boy with a weakness for sports cars, champagne parties and girls. in china he spent time with mary ann and abby huntsman, daughters of jon huntsman, the u.s. ambassador to china. this week we finally heard from him for the first time since the scandal broke. he told the harvard crimson, i am deeply concerned about the events surrounding my family. he also felt the need to defend his rumored lavish lifestyle. my tuition and living expenses are funded exclusively by two sources, scholarships and my mother's savings. my examination records have been solid throughout my schooling years, and i have never driven a ferrari. he made no mention of his long-time family friend, neil haywood, allegedly murdered in his hometown, poisoned by his mother. >> after weeks of people talking about what he's doing, he wanted to at least get his voice out there and clear the air. >> the statement to the harvard newspaper caused the website to crash, presumably from all of the international intrigue. but here at harvard, it was nearly impossible to find anyone who would talk on the record about him. at his luxury apartment, we were told to leave. the statement to the university newspaper is all we'll hear from the mysterious bo xilai. we have new information in from cambridge tonight. according to a source familiar with his academic performance, in one class at harvard, he did not turn in a single assignment. yet the following year he was one of 21 students awarded a coveted research grant in policy analysis from harvard's kennedy school of government. fellow student expressed dismay that harvard awarded a prestigious grant to a student that didn't meet minimum academic standards. a pretty interesting development and certainly flies in the face of what bo xilai is saying about himself. a columnist for forbes, i met with him before the show and asked him what the united states should do about the scandal. >> the police chief defected to the u.s. or at least tried to and we had to make a decision. we decided to stay out by throwing him back. other officials could come to the united states and force us to make that decision all over again like who do we not help by taking all of these officials. so it gets to be the point where we may have to sort of become much more involved. >> and there is a way that the united states could do that, right? which is short of really giving asylum to these people but would cause real issues for china? >> the one thing that we could do, if the obama administration leaked to the press, for instance, the bank account details of a chinese leader we didn't like or the u.s.-based assets -- >> so then everyone would see how loaded, how rich, how corrupt they are? >> right. this is important because his wife was supposedly involved in getting hundreds of thousands of dollars out of china and his son is involved, who's paying for this so this is how the united states could have a role if they wanted to. >> and what do you think is going to happen next? when are we going to see them? >> i think we'll see more and more officials decide to leave. i think we're going to see -- the chinese people almost express disgust in a more public manner because they are in a very real sense seeing this play out in front of them and they're saying what's going on here? >> all right. the obama administration launches an attack on mitt romney today. joe biden going on the attack. it's fun to watch. and sex for cash. a new report accusing secret service agents of partying with strippers a year before the latest scandal. [ male announcer ] this is genco services -- mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪ [ son ] mom, computer's broke! where's i.t. mom? she quit. [ male announcer ] even with technology -- it's all you. that's why you've got us. get up to $200 dollars off select computers. staples that was easy. the utterly shocking sensation of being on a business trip where everything goes right. backed up by a 100% satisfaction guarantee. feel the advantage. feel the hamptonality. joe biden went after mitt romney today and he also touted the president's top achievements. >> if you're looking for a bumper sticker to sum up how president obama has handled what we inherited, it's pretty simple. osama bin laden is dead and general motors is alive. >> john avalon is with us, riamm salem. you said this would be a nice bumper sticker so i guess it's nice to hear them taking your idea. >> i think it is a strong argument to make. it's strong, optimistic and unapologetic. you're going to own those key accomplishments. so i do think it's a smart argument for them to make. >> foreign ppolicy, how important will it be. there he was talking about osama bin laden, up got the iran issue where personally mitt romney's proposed way of dealing with it looks identical to barack obama's, but 16 points is the margin where the electorate thinks obama is stronger as commander in chief than mitt romney. >> that's a very, very big gap and something he's going to have to close. the question is, is it going to be a salient issue and the issue going to get voters to decide. republicans traditionally have an advantage of the idea of foreign policy and military strength. so the question is can romney capitalize on that in the future. >> chris, i want to show karl rove's superpac rolled out an ad trying to hit president obama on something he thinks is pretty good about himself, being cool. take a look. >> oh, yeah. ♪ i am so in love with you >> oh, yeah. >> nice. >> he's a jackass. he's a jackass. >> obama, obama. >> all right. which reminded me of a celebrity ad in 2008. >> he's the biggest celebrity in the world, but is he ready to lead? >> do you think this one will be effective or just make people chuckle? >> i think people will certainly chuckle and you have to give people credit for being creative and entertaining. at the end of the day the bumper sticker we were talking about speaks for itself. you have detroit and you have bin laden. what both issues go to is he has demonstrated he is capable of doing the job, he has what it takes. ultimately these elections will come down to one issue and that is the trust issue. who do you trust on foreign policy? who do you trust on the economy? and on that very simple issue of trust, he has a significant advantage right now. so while i think the celebrity is fun and we can chuckle about it, i think there's a big difference between four years ago and today because of the successes that he has demonstrated and specifically at the trust issue. >> but it's a classic karl rove move. he's going at his opponent's strength, trying to turn that strength into a liability. saying look, you may like president obama personally and think he's cool, but how has it helped you in your bottom line, especially you young voters. the difference as chris just said, in 2008 mccain could make that argument because here's a guy that had been in the senate less than four years. now he is president of the united states and just to dismiss him as a celebrity doesn't cut it. >> bottom line maybe he just gets young people don't vote at all. >> yeah, certainly a lack of enthusiasm on young voters will be a big issue for the president. another way of looking at this is that -- you know, is that when you look at this larger landscape and the cool issue, it's something that is -- it's trying to turn a strength into a weakness. and i think that's certainly an effective tact. >> thanks very much to all three, appreciate it as always. still outfront -- >> liar, liar, pants on fire. >> media mogul failed. >> i failed. i'm very sorry about it. >> agents provocateur. >> they were working very hard to try to get the strippers back to their hotel rooms. >> i'm confident we'll get to the bottom of it. >> all this outfront in our second half. [ horse neighs ] for too long, people have settled for single miles. with the capital one venture card, you'll earn double miles on every purchase, every day! [ visigoths cheer ] hawaii, here we come. [ alec ] so sign up today for a venture card at capitalone.com. and start earning double. [ all ] double miles! [ brays ] what's in your wallet? can you play games on that? not on the runway. no. can you play games on that? nno matter what you do. when you're living with moderate to severe crohn's disease, there are times it feels like your life... revolves around your symptoms. if you're tired of going around in circles, it may be time to ask your gastroenterologist about humira. because with humira, remission is possible. humira has been proven to work for adults who have tried other medications... but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief. and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. if you're tired of going around in circles, get headed in a new direction. ask your gastroenterologist about humira today. remission is possible. we start the second half of our show with stories we care about where we focus on our own reporting, do the work and find the outfront five. first, new details in the search for a missing soldier from ft. bragg. north carolina police just released this photo of private kelli bordeaux taken on the night she disappeared. a police department spokesman would not tell outfront who gave them the photo, only saying officers obtained it as part of their investigation. the 23-year-old was last seen in a bar at fayetteville about two weeks ago. 600 volunteers helped search for bordeaux today in the area around the bar and her apartment. number two, the obama administration has approved a broader use of drones to target suspected terrorists in yemen. this is according to the "wall street journal" and the "washington post." the new authority allows the military and cia to fire at militants even when their names aren't known but are declared high-value targets. a similar policy is in place in pakistan. sources tell us there has been an increase in counterterrorism strikes in yemen by u.s. drones and manned fighter jets. number three, charles taylor, the former president of liberia has been found guilty of war crimes. an international court convicted taylor of planning, aiding and abetting war crimes committed during its civil war. judges found taylor used so-called blood diamonds to fuel atrocities carried out by rebel forces, including murder, rape, slavery and using children as soldiers. sources tell me taylor may select a new defense attorney and will be sentenced next month. number four, filings for jobless claims fell by a thousand to 388,000, the 12th straight week. there was an upward revision to the prior week's numbers, which is not a good sign. economists say next week's key number will let them know whether the recent downturn is seasonal or the start of a new trend and broader weakening in the economy. it's been 266 days since the u.s. lost its top credit rating. what are we doing to get it back? today spain felt the downgrade pain as they cut the credit rating from a to bbb plus. that means it will cost them more to borrow. spain already has a youth unemployment rate some say nearing 50%. the john edwards trial has already revealed a wealth of embarrassing details about the former presidential candidate's personal life. now more details are coming to light today. a federal judge rejected an appeal by edwards' mistress, rielle hunter, to keep certain evidence sealed, like phone records. also today his former campaign aide, andy young, took the stand for a fourth day. he once claimed to be the father of edwards' child to try to keep the affair from coming out. joe johns is outfront for us today. let's start with the evidence presented in the court. i know you just got your hands on some of it. what did you find? >> reporter: well, a lot of stuff. this is voice mail transcripts, for example, that just came out. hopefully the court will send us more of this stuff. still going through it. erin, i can tell you we just wanted to give you an example, taking you back to the middle of december, 2007. this was a time when the media was really closing in on the mistress of john edwards, rielle hunter. and during that time, there was an e-mail exchange, actually a phone mail exchange that went down from edwards to andrew young. i just wanted to read you part of it because the prosecution says this shows the signs of deceit. here you go. i'm calling saying -- if i'm calling saying what happened, how did this happen, what's going on, then that's because elizabeth is standing there with me because i have to -- i think i've got to tell her about this because it's moving. so the prosecution will look at that and say it's a sign of a pattern of deceit. but in a nutshell, the defense will look at it and say maybe so. maybe he's being deceptive, but at the same time, he's not talking about campaign financing here. what he's talking about is staying out of the dog house with his wife. he's trying to keep this information away from his wife, which is the crux of the case. >> it's just -- yeah, let's bring in paul callan. you're saying there's a big issue here for the defense? >> yeah, it's a strange case, erin, because he's charged with violating federal election laws. his defense is, you know, federal election laws don't ban personal funds, personal use of funds if the donor knows that it's just being given to the candidate not for politics but for personal use. so he raises $900,000 from two people and that $900,000 is used to hide his mistress from the public. >> right. >> now at the time of trial he comes in and he says, well, those were my personal funds, not election funds. but he says i didn't know he was spending them to hide my mistress. well, if they were your personal $900,000, wouldn't you know about it? so i think he's in somewhat of contradictory position to say it's personal but i didn't know andrew young was using them to hide my mistress. so i think the jury will have trouble with that. >> it also seems from what joe was just reporting, voice mails, phone transcripts, a lot of them seem to be embarrassing, talking about covering the affair up from his wife. very embarrassing for him but perhaps not necessarily something that's going to send him to jail. this is sort of a different issue, isn't it? >> at the end of the case that will be up to the judge. he faces -- he could do 15, 20, 30 years in prison depending on how many counts he's convicted of. he's got a very talented lawyer doing great cross examination. but getting back to the contradiction thing, he hires this aide, andrew young, and tells him to lie. he admits that. he said lie. now he's being cross examined because he's a liar. well, john edwards hired a liar and so i don't know that the jury will think that's such a big deal, even though it kind of looks like good cross examination. >> joe, it's interesting, some of the revelations that have come out with andrew young admitting that he was, quote unquote, in love with his boss, right? >> yeah, yeah. well, the main thing today, i've got to tell you, it was all about the money. it was about the checks that bunny melon, the rich woman in virginia, wrote to andrew young, deposited into his account. the question was how much of that money did you actually benefit from? and it's hard to deny. he would make a telephone call to bunny melon. a day or two later, a check would roll in. just how much of that money did he end up with as opposed to how much of it went to rielle hunter. because that's where the money was supposed to go. it was, i think, pretty damaging testimony and it was all about the credibility of andrew young. >> and what do you think, paul callan, is going to happen here in wh all is said and done. and how much time he could serve in jail. you talked 20 to 30 years possible. >> i don't think he'll get that much time. but election law experts have never seen a criminal prosecution and they all said it's going to get thrown out, there's no case here, it can't be made. but you know something, this is such a reprehensible cast of characters that it's caused so much humiliation to the entire state of north carolina that it's quite possible that this jury is going to say we're going to convict him and he'll go down for something. and they had that last count that they always get him on, lying to federal officials. you know, even if you're innocent of everything else, you've got that one thing, that's a five-year count. so i'm betting that john edwards, as skillful as he was as a candidate and as a trial lawyer, he's going to have some problems with this jury. >> and joe johns, let me just ask you how he appears. i know we've been talking about a lot about that because he said he was sick. how does john edwards appear? how does he come off, confident, swagger, healthy, or none of the above? >> reporter: you know, he looks exactly like he did when he was on capitol hill. i mean i saw him for years. the thing, though, as i talk to people around town, they say that a few weeks ago, he was looking pretty bad. he was looking gaunt, he looked like he'd lost a lot of weight. but something happened between then and now. he looks super healthy. not a gray hair on his head. and he seems very active and engaged, talking to his daughter, kate, behind him, talking to his attorneys, working on the defense. so a real turn-around, if you will, if he ever looked very bad at all. >> well, he's back where he started in, a courtroom, okay. wrong seat maybe, but he started out at a trial lawyer. so maybe he's just comfortable back in the old workplace. >> and joe is talking about his hair looking perfect. we all know he doesn't spare any expense when it comes to his hair. a new secret service sex scandal has emerged. agents partying with strippers a year ago, and rupert murdoch making a surprising admission about the phone hacking scandal today. the chevy cruze eco also offers 42 mpg on the highway. actually, it's cruze e-co, not ec-o. just like e-ither. or ei-ther. or e-conomical. [ chuckling ] or ec-onomical. pa-tato, po-tato, huh? actually, it's to-mato, ta-mato. oh, that's right. [ laughs ] [ car door shuts ] [ male announcer ] visit your local chevy dealer today. now very well qualified lessees can get a 2012 chevy cruze ls for around $159 per month. e.p.a. estimated 36 miles per gallon highway. at bank of america, we're lending and investing in communities across the country. from helping to revitalize a neighborhood in brooklyn... financing industries that are creating jobs in boston... providing funding for the expansion of a local business serving a diverse seattle community... and lending to ensure a north texas hospital continues to deliver quality care. because the more we can do in local neighborhoods and communities, the more we can help make opportunity possible. with less chronic osteoarthritis pain. imagine living your life with less chronic low back pain. imagine you, with less pain. cymbalta can help. cymbalta is fda-approved to manage chronic musculoskeletal pain. one non-narcotic pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaids, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing skin or eyes. tell your doctor about all your medicines, including those for migraine and while on cymbalta, call right away if you have high fever, confusion and stiff muscles or serious allergic skin reactions like blisters, peeling rash, hives, or mouth sores to address possible life-threatening conditions. talk about your alcohol use, liver disease and before you reduce or stop cymbalta. dizziness or fainting may occur upon standing. ask your doctor about cymbalta. imagine you with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. all right. we're back with our outer circle where we reach out to our sources around the world. we start in nigeria where at least eight were killed, dozens wounded by three bomb blasts today. vladimir is in legos. how do we know who did it? >> reporter: erin, so far nobody has claimed responsibility for these attacks. it seemed to have targeted civilians and more specifically members of the press. however, i spoke to the managing director of one of the newspapers targeted in the bombings this day. he tells me why he can't be 100% sure, he believes these attacks bear the hallmark of an islamist fund mentalist group. they have been responsible for killing 400 people in nigeria just this year alone and killing 25 people and wounding hundreds in the united nations compound last year. the president condemned the killings saying they are misguided and wigd. news corp rupert murdoch admitted there was a cover-up in the phone hacking scandal. he testified in front of a judicial inquiry. dan rivers was there. how significant is rupert murdoch' admission there was a cover-up. >> reporter: this is highly significant. it's the first time he's admitted a cover-up, used that phrase. the remaining question now is how high up the management structure did it go? rupert murdoch is trying to give us the impression that it was limited to the legal affairs manager and perhaps the editor of the disgraced "news of the world" tabloid, but his enemies have repeatedly insisted, that james murdoch, his sons are was also told about the extent of phone hacking, suggesting this perhaps goes higher up than rupert murdoch would like to admit. erin. now to pakistan where officials have deported 14 members of osama bin laden's family. reza is there. >> reporter: erin in, a brief statement pakistan's interior minister said the bin laden family was sent to saudi arabia because that's where they asked to be sent to. of course two of the wives from saudi arabia, the third from yemen. this brings to an end a year where this family was kept in limbo while they were being held in custody by pakistani authorities and while they were questioned by pakistani authorities. of course the anniversary of the raid on the bin laden compound happens to be next week. it was during questioning by pakistani authorities that it was revealed that bin laden and his family lived in a number of homes in a number of major pakistani cities for over a decade, fueling that question, how did they do it without being detected. erin. >> all right, thanks very much to reza. now new details about a separate trip to el salvador in 2007 just days before he arrived. on that trip he brought his wife and children. the government contractor said secret services partied hard at a strip club. they described what the contractors saw earlier today. >> he witnessed some of the secret service agents going into the vip area to get sexual favors for cash. and ultimately, he said, they were working really hard to try to get the strippers back to their hotel rooms and that in at least two circumstances he witnessed that despite him telling them that it was a terrible idea, that that occurred. >> all right. there are now calls for a larger investigation into the secret service. right now we have some breaking news. sheila jackson lee just met with the agency's director, mark sullivan, and she's outfront tonight. good to see you, ma'am. >> thank you. >> let me just ask you this question. i know you had a chance to meet with mark sullivan and talk with him about these latest allegations, about what happened a year ago in el salvador, and he said something to you that may contradict what we just heard? >> if these allegations are true, the behavior is absolutely unacceptable. but director sullivan indicated that he is still looking for the facts. right now they have begun to question supervisors that were on the ground, personnel attached to the embassy that was there. they have not completed an investigation, but they really need more facts and they really are seeking for anyone who would come forward, for the source to come forward, maybe voluntarily. but we obviously made the point that no stone should be left unturned with respect to any allegations that may be coming forward. now, i added something, and i really believe it is important for some statement to come forward. i believe from the agency in whatever appropriate way, to insist that this is not and should not be the culture of the agency, that no further opportunities like this will be allowed by anybody who was employed by the agency, to restore the faith and confidence of the american people and to say again as i have said that the greater majority of secret service agents over the decades have been hard working and protected the commander in chief to the utmost. >> congresswoman lee, what i'm curious about and find very hard to understand is there seems to be some legal question here that, okay, if prostitution is legal in the city that you're in, that maybe it's okay, that it may be inappropriate, but it's okay. i don't understand how it could be okay. >> reporter: -- >> erin, i'm so glad you asked that question. let me just share in addition that i think you'll be pleased at some of the immediate administrative agencies that will be coming into the agency. first, let me just make it very clear we need more women. but right now director sullivan will be implementing as we speak a working group that's going to deal with this issue of culture, a separate group talking about outreach and recruitment and talking about women and other diverse groups that need to be part of the secret service agency. more importantly, we're going to be saying that no foreign nationals -- the agency will say no foreign nationals will be allowed in your room. it will be absolutely illegal in terms of your job for you to in essence attend or be associated with any place of bad acts. and then finally, a professional development officer or personal officer is going to go on every trip that the agents take out of the country. but let me just say this. i am writing legislation that will speak to your very point. this is a misnomer. first of all, prostitution or sex -- sexual promotion -- promotion of sexual activities in colombia was not legal. the only act that's legal in colombia is the fact of the woman's participation. and the reason is that country is impoverished to a certain extent. they are obviously making a great change. they were a great host. but more importantly, these women use this to support their family. but pimping is illegal. promoting prostitution, which the play club did for profit, is illegal, frat eaernizing with foreign nationals, or prostituting with people may be underage, under 14 is illegal. that's bogus. i'm glad to say that 12 agents that are involved, they are gone. investigations are still proceeding, but 12 of those agents have been gone except for the fact that the director said they're going to complete their investigation. they have a few more people to interview on the colombian incident, but that is absolutely a ridiculous argument. that's why i was so outraged. you cannot do what is legal in one country but is illegal in the united states and keep your job. >> and did director sullivan -- did you ask him or did it come up as to how the departures of these agents has been handled? i mean it has surprised some that some of them weren't outright fired, that they were allowed to resign or retire in one case with benefits. >> i think the important point is that we have structures here in the federal government, in any place of work. work is protected by due process. some are protected by rights to appeal. we have a federal merit protection board. and that's okay. i think the acts of the agency made it very clear that these individuals were no longer welcomed at the secret service agency. they did not reflect the work and quality of the men and women who have served there, so these individuals are gone. they have their rights to appeal. they have their right to resign because of the procedures and if you want someone to go quickly, resignation is a perfect way to handle it. i wanted the cancer to be carved out. i think director sullivan has made it very clear that he wanted the cancer to be carved out so that they could focus on addressing the question of if this is a culture, then they want to immediately put it to rest. that's why they have established this working group. that's why they have announced right now no foreign nationals in your room, no fraternizing in places that you should not be. i want to do more, which is if you perform something which is illegal in the united states while you're, as they say, on duty, performing your duties, you need to be fired immediately. but we are not giving up on the investigation. >> congressman lee, thank you very much. we appreciate your taking the time and you heard it there. mark sullivan saying perhaps nothing did happen in el salvador. that still ongoing. all right. well, i found this in jerusalem. and it's scented and i'm going to tell you all about why it smells bad. y 4 years old, jonathan horton climbed all the way to the ceiling... in the middle of a department store. some parents might have scolded him. ♪ jonathan's parents gave him... gymnastics lessons. ♪ it's amazing how far you can go with a little help along the way. ♪ td ameritrade. proud sponsor of the 2012 u.s. olympic team. who have used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed testosterone replacement therapy. it raises your testosterone levels, and... is concentrated, so you could use less gel. and with androgel 1.62%, you can save on your monthly prescription. [ male announcer ] dosing and application sites between these products differ. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or, signs in a woman which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are, or may become pregnant or are breast feeding should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. talk to your doctor today about androgel 1.62% so you can use less gel. log on now to androgeloffer.com and you could pay as little as ten dollars a month for androgel 1.62%. what are you waiting for? this is big news. the u.s. dollar remains the global currency standard. you can use it all over the world from buying sushi in tokyo to prostitutes in cartajena. there are no challengers to america's currency domination, until now. >> since iceland's financial collapse in 2008 there have been a lot of discussions about whether the country should stick with the icelandi -- crona. >> i have never trusted protein sucking, health care addicted nemesis to the north. they always have to make our stuff their stuff. canadian bacon, canadian beer, canadian baseball. >> sorry. calling canada a poutine-sucking nemesis is a little harsh. i'm glad other members of the media are finally taking the canadian threat seriously. i heard something crazy today. after years of getting busted for steroids, major league baseball players may have found an all natural advantage. jasmine. the smell treatment and research foundation teamed up with members of the chicago white sox for a study to see if the smell of jasmine could improve baseball performance. why the heck they thought of jasmine, i have no idea, people, but it worked. the players wearing jasmine-scented wristbands had better reaction times. strange, right? sure, but not as strange as what i found in jerusalem. this. this is holy water from the jordan river. and, yep, it -- it's scented holy water. now, because selling holy things at exorbitant prices has become something of an industry in the holy land, i was curious about this. a number of companies now offer extensive lines of scent ed holy water and anointing oils that they came from the jordan river and other religious sites. when i saw this bottle at the duty-free shop for $5, a week ago it was only $4. it reminded me of the time i visited stations of the cross. i happened to be in jerusalem on a good friday. i went to the stations of the cross and a priest wouldn't let me in because i didn't have any money and they charge you to go to stations of the cross. the idea of charging tourists of visiting holy sites and asking them to pay for holy water because it's scented, well, first of all, i just want to smell it. and it really doesn't smell good. it actually smells like something that i don't think is appropriate to talk about.