Here is the transcript of a CNN Situation Room's report on the outsourcing of U.S. passports. This the latest outrage by a government that is participating in the selling out of our country:
They're designed to deter terrorists and keep America's borders secure -- U.S. passports embedded with brand new high tech computer chips. But several foreign companies have a -- now have a hand in making them and this outsourcing, meant to actually save money, is raising new concerns about your security.
Let's go to CNN's our State Department correspondent, Zain Verjee. She's been looking into this story.
It's raising a lot of eyebrows, a lot of concerns -- Zain, what are you learning?
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, Wolf, there are fears that the high tech push on passports could mean lower security standards.
VERJEE (voice-over): Your passport used to be made in America, but because of 9/11, all passports now must be fitted with electronic chips -- harder for terrorists to fake. Turns out, though, that in trying to make passports more secure, the U.S. is outsourcing the job to foreign companies.
MICHAEL CUTLER, CENTER FOR IMMIGRATION STUDIES: It's another reason not to sleep tonight. VERJEE: Security experts fear blank chips could be stolen or tampered with.
CUTLER: If bad guys got a hold of those blanks and then properly filled them out and processed them and you had corruption involved, then what you really have are the keys to the kingdom sitting in a foreign country.
VERJEE: The Government Printing Office says U.S. companies don't have the state-of-the-art technology, so it gets European companies to make computer chips, in Singapore and Taipei, that are then sent to Thailand and inserted into passport covers, along with a wireless antenna. Those blank covers and blank chips go back to the U.S., where your data and photo are added.
Congress is sounding alarm bells. In a letter to the GPO inspector general, Congressman John Dingell is demanding to know whether that poses "... a significant national security threat and raises questions about the integrity of the entire e-passport program." SmartTrac, the Dutch-based company producing U.S. passports in Thailand says its facility is secure and built according to U.S. standards and each passport chip is tracked.
In a statement, the GPO says, "The materials are moved via a secure transportation means, including armored vehicles."
The State Department says there's no reason to be concerned.
PATRICK KENNEDY, UNDERSECRETARY OF STATE: When they arrive in the United States, all you have in front of you is a blue piece of plastic that is the standard size of anyone's passport in the entire world and a chip that has nothing on it and it could be the same equivalent as a CD-ROM that you could buy, as I said, anywhere.
VERJEE: Just a short while ago, CNN obtained a statement from Benny Thompson, the Chairman of the Committee on Homeland Security, who calls outsourcing passports just plain irresponsible, saying that his committee is going to look into whether U.S. technologies are just being overlooked -- Wolf.
BLITZER: One quick question I'm sure a lot of our viewers jump out -- and you referred to it in your piece, Zain. You mean to say there's no company in the United States of America that can manufacture a passport complete with the new high tech chip?
VERJEE: That's what the State Department, as well as the GPO, told us. What we learned also, Wolf, was SmartTrac -- that's that Dutch company in Thailand -- is saying that it's going to build a new production facility here in the U.S., in Minnesota.
They're saying that it should be up and running by the summer. But of course there's a lot of outrage about this, many saying U.S. companies should have this kind of technology and this is something that the Committee on Homeland Security is going to be looking into. BLITZER: Pretty shocking. It's hard to believe that there's no company in the United States who can do this.