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CNN Wolf Blitzer Reports

Israelis Cope With Day of Terror

Aired November 28, 2002 - 17:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


MARTIN SAVIDGE, CNN ANCHOR: I'm Martin Savidge. Stay tuned now for a special two-hour edition of WOLF BLITZER REPORTS on the simultaneous terror attacks, but first we've got a news alert.
(NEWSBREAK)

SAVIDGE: That's a look at our CNN news alert. A special edition of WOLF BLITZER REPORTS starts right now.

(BEGIN VIDEOTAPE)

SAVIDGE (voice over): Day of terror, suicide bombers blow up an Israeli-owned hotel in Kenya as missiles are filed at an Israeli airliner taking off nearby.

UNIDENTIFIED MALE: (Unintelligible) a little below to the plane.

SAVIDGE: Palestinian gunmen attack an Election Day crowd in Northern Israel.

ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): We will continue to act in whatever way seems to us to be suitable and appropriate in order to eradicate terror.

SAVIDGE: Who has these missiles? How safe are our skies?

BENJAMIN NETANYAHU, ISRAELI FOREIGN MINISTER (through translator): Today they fired missiles at Israeli planes. Tomorrow they'll fly their missiles at U.S. planes, British planes, planes from every state.

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS, DAY OF TERROR. Substituting for Wolf Blitzer here's Martin Savidge.

SAVIDGE: It is good to be with you. Hello to our viewers in the United States and around the world. Let's get started. Israelis were targeted at home and abroad on a day of terror. In Kenya, suicide bombers struck at an Israeli-owned resort hotel and missiles were fired at an Israeli airliner in Israel itself, a blood shooting attack. We begin our coverage with CNN's Catherine Bond joining us live now from Mombasa, Kenya - Catherine.

CATHERINE BOND, CNN CORRESPONDENT: Well, a picture emerging here of how 150 Israeli tourists survived at this hotel behind me in busses through the gate and only to find that minutes later a car broke through the barrier here containing three occupants according to eyewitnesses, three young men, which then exploded outside the hotel killing at least 13 people, some Kenyans and some Israelis and the suicide bombers themselves.

Kenyan police later discovering what appeared to be some sort of detonating device within the wreckage of the car. (Unintelligible) strewn across the hotel compound about 50 yards in all directions. The force of the blast blowing out shop windows at least 50 meters away over here and setting a light to the roof and to the (unintelligible) on the gates behind us. The fire then burned destroying much of the hotel. Throughout the day Red Cross workers worked to retrieve bodies from the hotel. They took out at least eight Kenyans and three Israelis - Martin.

SAVIDGE: Catherine Bond reporting live outside the Paradise Hotel, the scene of that attack. Moving on now, after escaping a missile attack, passengers on an Israeli charter flight from Kenya have reached the relative safety of home. CNN's Matthew Chance reports.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice over): Relief in Tel Aviv their aircraft survived the twin missile attack. Disaster over Mombasa was avoided. On arrival, passengers were met by loved ones amid emotional scenes. They spoke of their flight from Kenya so nearly brought to a violent end.

UNIDENTIFIED FEMALE: We heard a bomb. They told us at first that they think a bird stuck in the engine but they knew from the start what was going on and they didn't tell us (unintelligible).

UNIDENTIFIED MALE: (Unintelligible).

UNIDENTIFIED FEMALE: (Unintelligible) as usual.

CHANCE: A home video recorded in the final minutes of the flight shows Israeli warplanes escorting the airliner into Tel Aviv. Nearly six hours after takeoff, passengers had only just been told what happened. "The missile tried to intercept us" says this woman. "We're afraid. We don't know how the plane will land."

Touchdown is met with celebration. (Unintelligible) Flight 582, a charter, took off from Mombasa on Thursday morning with more than 260 tourists onboard, and seconds later police say at least two missiles were fired at the plane from the ground. The plane was unscathed. What appeared to be missile launches had been found nearby.

UNIDENTIFIED MALE: Right after takeoff from Mombasa as we were retracting the landing gear, we felt some bump which we had no idea at the time. It was a very small bump. We had no idea at the time what it was and right after that we saw two white stripes passing us by on the left side from the back of the airplane towards the front, which disappeared after a few seconds.

CHANCE: Some of these passengers had themselves been staying at the Paradise Hotel in Mombasa bombed just minutes after their plane came under attack, escaping death twice in one day, far better one said than not at all.

CHANCE (on camera): Many of the passengers we spoke to told us they'd chosen Mombasa in order to escape the tension and bloodshed of Israel. Israeli officials now warning of more threats against Israeli citizens overseas; many of these passengers are simply relieved to have made it home. Matthew Chance CNN, Ben Gurion Airport, Israel.

(END VIDEOTAPE)

SAVIDGE: Now to the northern Israeli town of Beit Shean. Palestinian gunmen opened fire at a bus station and a Likud Party polling station on this, a crucial election day. For that story and the results, we turn to CNN's Jerrold Kessel live in Tel Aviv -- Jerrold.

JERROLD KESSEL, CNN CORRESPONDENT: Marty, the polls haven't even opened for the Likud leadership election. When the news came through of that twin attack in Mombasa, Kenya just despite the horror of the outrage at the hotel in Mombasa, the size of relief was just sinking in as that aircraft which had been targeted by the surface-to-air missiles came home safely when there was news coming through of carnage from northern Israel because two Palestinian gunmen unleashed a barrage of shooting attacks, went on a shooting spree throwing hand grenades killing six Israelis before they themselves were shot and killed by Israeli security personnel.

And, Israeli leaders were not slow to blame Palestinians for trying to sway their elections, both the primary election for the leadership of the right-wing Likud Party and they say for the general election at the end of January. Well, whether that's true of not, one thing seems to be clear that that election, that general election will be fought not on a question of the deteriorating Israeli economy, not on questions of making peace with the Palestinians but of the issue of how best to combat terror and to bring more security for Israelis.

But, Prime Minister Sharon, Ariel Sharon will seem to be the man who will be leading the right-wind Likud into that election because one would have expected him to be partying at this stage but because a political day turned into a day of terror there's no partying here at what has become the Likud headquarters for the day.

But it is Ariel Sharon planning to mark his political victory even in adversity because according to the exit polls from the Likud elections it has been a major victory for Mr. Sharon over his challenger Benjamin Netanyahu and in the last half hour the actual counting of votes is bearing out that landslide victory for Mr. Sharon, more than 20 points, victory of Benjamin Netanyahu. He seems set to run the right wing into that challenge against the center left Labor Party in the January 28 elections -- Marty.

SAVIDGE: Jerrold, is there any indication from the Israeli government how it's going to respond to this external terrorism?

KESSEL: That's a very interesting question you ask because we've had so many times before, the question of Palestinian terror, Palestinian attacks, what will Israel do? How they will counter them? Israel has been all along saying that that Palestinian campaign is part of a global campaign, a global terror campaign. What I think we might be seeing the start of today because of these attacks, whoever carried them out in Kenya, is Israel getting involved in the counterterror attack worldwide?

And, it's very interesting to note Mr. Sharon has instructed Israel's Mossad (ph) spy agency to take charge of the investigation into who carried out those killings, those attacks, in Mombasa, Kenya and to determine who precisely was behind it. But beyond that, I don't know but I think that signals a start of where Mr. Sharon, even as he's heading into the selection, needs to go if he remains prime minister - Marty.

SAVIDGE: Jerrold Kessel reporting live from Tel Aviv our thanks. Well, the president is spending his Thanksgiving holiday in Crawford, Texas. CNN Senior White House Correspondent John King joins us live from there. John, the Israelis and the Kenyans both are indicating that this may have been the work of al Qaeda. What's the White House saying?

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: The White House says, Marty, that it is too soon to tell. There is obviously great concern about the episode in Kenya involving the surface-to-air missiles because al Qaeda is known to have those missiles and to have produced a training video about such missiles, and of course, the U.S. believes there continue to be al Qaeda cells in Kenya. It was al Qaeda blamed for the attack on the U.S. embassies in Kenya and Tanzania back in 1998.

So, it certainly is an area of concern. White House officials say it is too soon to tell. They want to see the investigation, the evidence from that investigation and they promise to assist the Kenyan authorities as that investigation unfolds. They say right now they're not ruling it in but they're certainly not ruling it out - Marty.

SAVIDGE: And what about the concern, John, that this just wasn't an attack on Israelis but could signal perhaps a broader type of strategy?

KING: Well, Jerrold Kessel just hit the point. One giant U.S. concern right now, even before this violence and the tragic deaths of today, was that there would be an increase in violence against Israelis designed to provoke a strong Israeli response which, in turn, could provoke strong anti-Israeli and anti-American sentiment across the Arab and Muslim world just as the Bush administration is involved in this very tough diplomatic confrontation right now and possibly a military confrontation not long down the road with the Arab state of Iraq.

One thing that would significantly complicate U.S. diplomacy in the Arab world with Saudi Arabia, with Jordan, with Bahrain, with Qatar, with other nations is if Israel was projecting force outside of its borders. The United States already gets enough interference, if you will, criticism from Arab countries when the Israelis send troops into the Palestinian territories.

If there was any evidence at all that Israel was about to or if any Israeli response came about in which the Israeli military was projecting force elsewhere in the world, that would significantly complicate U.S. diplomacy but the Bush administration says it has the right to respond to global terror. It is in no position to tell the Israeli government it can not respond if it can find those responsible - Marty.

SAVIDGE: But, John, doesn't the White House consider that may be part of the broad plan on whoever carried out these attacks to draw Israel in?

KING: That has been a White House concern from the get-go. Remember al Qaeda's mission statement includes getting the United States to pull out of the Middle East, no troops in Saudi Arabia, no tankers, aircraft carriers in the Persian Gulf, so that has certainly been an al Qaeda mission and in the recent communications, that audiotape from Osama bin Laden, other communications publicly released by al Qaeda or intercepted by the United States, there is a great deal of talk not only about the United States but its alliance with Israel in the region.

The United States says it's too soon to tell in these particular cases but there is a giant fear at the White House, especially again given the moment, the drama of the moment in Iraq that there could be an effort to draw Israel into the conflict and make those Arab nations think twice about joining any coalition with the United States right now.

SAVIDGE: Certainly, John King live with the president of the United States in Crawford, Texas thank you. They were used with deadly effectiveness against the Soviets in Afghanistan. Now are stinger missiles the new weapon of choice for al Qaeda? CNN Investigative Reporter Mike Boettcher joins us just ahead. And, if al Qaeda is firing stingers at passenger planes, how vulnerable are commercial airliners? A reality check on security still ahead.

(COMMERCIAL BREAK)

SAVIDGE: In light of today's terror attacks this question, just how safe are airports and jetliners from terrorist missile strikes? CNN's Patty Davis is at Reagan National Airport in Washington with that - Patty.

PATTY DAVIS, CNN CORRESPONDENT: Well, Marty, the possibility that terrorists could use these shoulder-fired missiles against aircraft here in the U.S. has certainly drawn the concern of U.S. officials.

(BEGIN VIDEOTAPE)

DAVIS (voice over): A narrow escape for this Israeli charter plane. Two portable missiles fired near the Mombasa, Kenya Airport missed their target. NETANYAHU (through translator): Today they fired missiles at Israeli planes. Tomorrow they'll fire missiles at U.S. planes, British planes, planes from every state.

DAVIS: Just weeks ago, U.S. security officials met with airline executives in Washington to discuss among other issues the possibility that shoulder-fired missiles like this one, shown in an al Qaeda training video, could be used against U.S. commercial airliners. Last May, after an apparent attempt by al Qaeda to shoot down a U.S. military plane in Saudi Arabia with such a weapon, the FBI and the Transportation Security Administration warned airlines and local law enforcement that it could happen in the United States but did not ask them to take any special precautions.

In fact, in its alert the TSA said: "There is no information indicating that al Qaeda is planning to use MANPADS or shoulder-fired missiles against commercial aircraft" but it added "the threat can not be discounted."

ERIC MARGOLIS, TERRORISM ANALYST: It's unlikely but it is possible if one of these missiles has been smuggled in, particularly a stinger. There are between 100 and 300 stinger missiles from Afghan war days back in the 1980s still floating around unaccounted for. They are available on the black market.

DAVIS: Airplanes are most vulnerable to shoulder-fired missiles during takeoff and landing. Unlike U.S. military aircraft, U.S. passenger planes are not equipped with chaff and flares to draw heat- seeking missiles away, nor do they have technology to confuse an incoming missile's guidance system.

(END VIDEOTAPE)

DAVIS (on camera): So security at airport perimeters, particularly important. Now airports have beefed that up since September 11th but terrorism experts say that they could do even more including being yet more vigilant about who they allow on airport grounds - Martin.

SAVIDGE: Patty, is anybody talking about putting some of the sensitive material on commercial airliners to make them safer if that's possible?

DAVIS: Well, in fact, the Israelis are talking about something like that, kind of anti-missile system. It will be a radar to detect incoming missiles and then they would be able, they would use technology to deflect that missile, scramble it somehow so it would be deflected from the aircraft and not hit it. Now, this big cost though, per airliner about $10 million to put something like that in, under consideration now for the Israelis - Martin.

SAVIDGE: That's a big expense. All right Patty Davis thanks very much. Now, here's your chance to weigh in on this story. Our web question of the day is: Should all commercial airliners be equipped with missile evasion technology even if it is expensive? We'll have the results later in the broadcast. Vote at cnn.com/wolf. While you're there, we'd like to hear from you. Send us your comments and we'll try to read some of them during this program. That's also, of course, where you can read our daily online column, cnn.com/wolf.

Well, the State Department is sending a team of investigators to Kenya to help with the probe into today's attacks. CNN's State Department Correspondent Andrea Koppel has that.

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Good evening, Marty. Strong words today from Secretary of State Colin Powell speaking out against those two terrorist attacks targeting Israelis from Israel all the way to Kenya. In a prepared statement, Secretary of State Powell said:

"We condemn in the strongest terms the horrific terrorist bombing earlier today in the Paradise Hotel near Mombasa, Kenya that killed at least 11 and wounded dozens, both Kenyans and Israelis. We also condemn in the strongest terms the terrorist shooting at a polling station in Beit Shean in which three Israelis were killed and many more injured."

The statement went on to say that: "We also call on the Palestinians to take immediate and sustained steps to eradicate the infrastructure of terrorism and violence that has wrought such tragic bloodshed."

Now, despite today's attacks, State Department officials tell me they made the decision not to update the worldwide travel warning that's already in effect. They said that it's strong enough and it should stand alone. Americans obviously need to be on alert wherever they go. The State Department did, however, make the decision to send two of its foreign nationals from its embassy in Nairobi, Kenya to go to Mombasa, they said to help out both Kenyan and Israeli investigators - Marty.

SAVIDGE: Andrea Koppel thanks very much. Moving on second full day on the job and the first discrepancy how did U.N. weapons inspectors react when they got some bad information? Israeli leaders say today's attacks were a clear escalation and they remain defiant. I'll speak live with Israel's ambassador to Washington on what the next move might be.

(COMMERCIAL BREAK)

SAVIDGE: United Nations inspectors carried out a second straight day of hunting for suspected weapons of mass destruction in Iraq. Among the sites checked, a plant that at one time produced deadly toxins. CNN's Rehm Brahimi is in Baghdad with the details.

(BEGIN VIDEOTAPE)

REHM BRAHIMI, CNN CORRESPONDENT (voice over): Crowds in a passing bus on a road near Baghdad, children wave at foreigners, the foreigners the international media as U.N. weapons inspectors try to make out what lies behind the gate. Day Two of the inspections, the Al Daura factory. BRAHIMI (on camera): Places like this factory were the reason there was so much suspicion over Iraq's weapons programs in the past. This plant was monitored by the previous U.N. weapons inspection team. Four years later, inspectors are back.

BRAHIMI (voice over): At least one inspector wore full protective gear as the team gathered samples from the compound. A four-hour long inspection, journalists kept aside, but once the inspectors left, we were allowed in, Baghdad keen to prove claims Iraq has nothing to hide.

UNIDENTIFIED MALE: They took many samples from portable tanks, from fixed tanks and also from the ventilation system.

BRAHIMI: Al Doura was an obvious site for the inspectors to visit. Once used to produce foot and mouth disease vaccines for livestock, the Iraqis admitted in 1995 that it had also been used to produce the lethal biological warfare agent Bochuden (ph). That led the previous inspectors to destroy most of the plant's equipment and place surveillance cameras there. The cameras are no longer working and some of the remaining equipment has been transferred.

DIMITRI PERRICOS, UNMOVIC TEAM LEADER: We're looking for some equipment that had been noted from the past activities that they should be in the plant and when we didn't find them we asked the director of the plant.

BRAHIMI: He told them evidence of winning cooperation from the Iraqis so far, so they left the factory for another facility to the north where they found the equipment they'd been looking for. Back at Al Doura, only five of the plant's original 120 employees still work here. As children gather around the compound, this site is clearly not as sensitive as it once was. The inspectors realize far tougher challenges lie ahead. Rehm Brahimi Cn, Baghdad.

(END VIDEOTAPE)

SAVIDGE: A day when security officials assess the war on terror, the latest from Kenya and Israel, and I'll speak live with Israel's ambassador to the United States. And terrorism and tourism, the strike on the resort in Kenya rips through the tranquility and has tourism officials worldwide bracing themselves.

(COMMERCIAL BREAK)

SAVIDGE: Welcome back to this special edition of WOLF BLITZER REPORTS DAY OF TERROR. I'm Martin Savidge filling in for Wolf. Our top story, twin terror attacks in Kenya. A deadly suicide bombing in a hotel and missile strikes at a charter jetliner, the target Israelis. CNN's Charles Molineaux, he reports.

(BEGIN VIDEOTAPE)

CHARLES MOLINEAUX, CNN CORRESPONDENT (voice over): Mombasa's seaside Hotel Paradise became a scene of hell on earth as bloodied survivors staggered to the beach or just stared, dazed, at the ruins. More than a dozen people were killed including two Israeli children and three suicide bombers.

Thursday morning, a green vehicle full of explosives approached the hotel. It was turned away but then came back and rammed through the gate. One man jumped out and blew himself up inside the hotel. The other two set off the explosives in the vehicle. The blast tore apart the wooden and bamboo building and sent shattered glass flying.

UNIDENTIFIED FEMALE: It was a big bomb and all the glasses (unintelligible) and we were lucky because we were in the corner of the room.

UNIDENTIFIED MALE: I wake up. I see all the (unintelligible). Many people they cry. Many people (unintelligible).

UNIDENTIFIED FEMALE: We took our stuff and ran to the sea (unintelligible).

MOLINEAUX: The hotel was Israel-owned and popular with Israelis in part because of its tight security made them feel safer. Police in Kenya took two people in for questioning and a previously unknown group calling itself the Army of Palestine has claimed responsibility. Some Kenyan officials are blaming a more familiar name.

JOHN SAWE, KENYAN AMBASSADOR TO ISRAEL: I have no doubt whatsoever that these must be connected with al Qaeda.

MOLINEAUX: Kenya's vice president says yes, as he puts it, "we can't rule out those who struck us in 1998." That was when the U.S. Embassy in Nairobi was blasted by a car bomb and so was the U.S. Embassy in Dar es-Salam (ph), Tanzania. The simultaneous attacks killed 224 people, including a dozen Americans and both have been blamed on al Qaeda. The vice president says ongoing turmoil next door in Somalia is a loophole in efforts to strengthen security in East Africa.

UNIDENTIFIED MALE (through translator): We're all asking ourselves things like where do they come from and why does it happen to us in a country like Kenya?

MOLINEAUX: Stunned, saddened, Kenyans see this as another bloody episode in an outsider's war and they're demanding the government do more to protect their tourists and the Kenyan people. Charles Molineaux, CNN, Atlanta.

(END VIDEOTAPE)

SAVIDGE: It was a close call for passengers aboard an Israeli jetliner targeted by a pair of missiles as it took off from Mombasa, Kenya. The flight arrived safely in Israel. Once again, CNN's Matthew Chance picks up the story from Tel Aviv.

CHANCE: A lot of anxiety but also a lot of relief among the passengers that we've been speaking to here in Tel Aviv. They disembarked from the aircraft having only just been told within the last half an hour before they landed here in Tel Aviv that the plane had come under missile attack. Many of them had been very disturbed by hearing unusual noises as the plane took off. What we now know, of course, is that that plane came under missile attack just two kilometers or so after it left the runway in Mombasa. Some of the passengers we spoke to said how relieved they were to have escaped with their lives.

UNIDENTIFIED FEMALE: We didn't know anything, just when we -- the airplane start to leave, we heard boom. We didn't know anything. The staff didn't tell us anything until about 10 or 15 minutes before we came to Israel. Then they told us what happened. And about a few minutes after that we saw the airplane, military airplane going -- checking if everything is OK with the plane. And they told us we were safe.

CHANCE: Well the pilot of the aircraft said that he saw two flashes just in the seconds after lifting off from the airport in Mombasa. He said he checked the aircraft systems but found that there was nothing wrong with the plane. And so at that point made the decision to continue his journey on to the destination of Tel Aviv. Captain Haffi Marek piloted the aircraft has it came under missile attack.

HAFFI MAREK, PILOT: We were just taking off and we were tracking the landing gear as we felt a kind of bump, not something very serious. And right off the bat we saw two white stripes passing us by on the left side coming up from the back of the airplane towards the front of it and disappearing after a few seconds. Just after takeoff after everything settled, we talked to the passengers, which also some of them saw what we saw.

CHANCE (on camera): What did you tell them?

MAREK: We just told them that, according to all of our indications, everything is normal and we continued the flight to Tel Aviv. There was no panic whatsoever. Everything was calm and normal.

CHANCE: Well, Israel, of course, in some shock and feeling some anxiety as a result of these joint attacks. Already we have heard from Israeli officials that they have ordered or advised Israeli citizens in Kenya to leave the country. Also hearing that they've shut down the Israeli embassy in Pretoria, South Africa, because of what they say are threats to the safety of its staff there. Matthew Chance, CNN, in Tel Aviv.

(END VIDEOTAPE)

SAVIDGE: This was primary day for Israel's ruling Likud party. But it was a bloody day in the northern town of Beit Shean as Palestinian gunmen attacked a bus station and a nearby polling station. Live go live once again to CNN's Jerrold Kessel in Tel Aviv -- Jerrold.

KESSEL: Marty, they were planning to party here at about this time at the Likud party, the right wing Likud party at the end of the leadership race. But there will be no partying because the day of politics turned into a day of terror. Nonetheless, it seems as if Ariel Sharon will be able to celebrate a political victory in adversity because of the terror; it was a rolling day of terror.

No sooner word coming in of the sighs of relief really that that airliner had returned safely to Tel Aviv, than the word of a Palestinian attack in the northern Israeli town of Beit Shean. Two Palestinian gunmen going on a shooting spree, throwing hand grenades, killing six people, including people who were lining up to vote in this Likud party primary for the leadership of the right wing party.

Another 25 Israelis were wounded in that attack, several of them seriously, before the Palestinian gunmen were shot and killed by security personnel. Nonetheless, Ariel Sharon, Israel's prime minister, will be celebrating this victory. He has scored, it seems, a very decisive, a landslide victory over his challenger, Benjamin Netanyahu, his current foreign minister, who has conceited defeat and offered his congratulations.

More than 20 points margin between the two men. Ariel Sharon now having (UNINTELLIGIBLE) challenger, Benjamin Netanyahu, within his own party. Set to see off the challenge he believes at the end of January, and all of the polls suggest he will. The challenge from the center left labor party in the general election.

But it also seems as if Mr. Sharon has his sights fixed elsewhere as prime minister, because he has ordered Israel's (UNINTELLIGIBLE) spy agency to take control of the investigation into those twin attacks down in Kenya and to investigation who conclusively carried out those attacks. That's the direction Ariel Sharon seems to be going in what seems to be Israel beginning a counter war on terror -- Marty.

SAVIDGE: Thank you, Jerrold. Jerrold Kessel reporting live from Tel Aviv.

Israel says it will do everything it must to combat and eradicate terrorism. Meantime, it warns that the missile attack reveals a new threat for all nations. Joining us from our Washington bureau is Daniel Ayalon, Israel's ambassador to the United States. Mr. Ambassador, thank you very much for joining us.

DANIEL AYALON, ISRAEL AMBASSADOR TO U.S.: Good evening.

SAVIDGE: Let me ask you this. How will Israel respond to this external terrorism?

AYALON: Well, first of all, we will continue to defend ourselves. I think this is the first obligation for any democratic country to do that. And we will hunt down the terrorists and bring them to justice. And more importantly, we will do it so as to prevent the next attacks which are now being planned.

What we see now is that terror has become globalized. Palestinian terror now is going everywhere, there are no limits. And we know in the past there were corporations between different terror organizations, Hamas, jihad, Palestinian Authority organizations with Hezbollah, Iranian bank groups and al Qaeda as well. We do think that to effectively combat this Palestinian terror and global terror it must be a concerted effort by all democracies to cooperate and to really mobilize all of the resources, intelligence, operational, also to try and dry up their funds that they can freely move. And really in a concerted effort it can be stopped.

SAVIDGE: Do you see a military strike as an option in response to this attack?

AYALON: Well, I don't want to speculate about any mode of operations. But I would say that if any lesson can be taken, it's that terror will never be appeased. They attack us not because of what we do, but because of who we are.

We are trying to compromise, we are debating how to promote peace. We are extending our hand in peace, but to no avail. They attack us very fiercely, and the only way to stop it is to eradicate it. And to do that, you really need the cooperations of all countries.

One of the problems we have today, there are still safe havens for terror. There are terrorist centers in rogue regimes like in Iran, like in Lebanon, like in Syria, like in the Palestinian Authority. The terror emanates from there, terror centers are there, or the leadership there not only (UNINTELLIGIBLE), but they encourage it inside (ph). So this is...

SAVIDGE: Quickly, let me ask you this, Ambassador, before we run out of time. Your government, as well as the Kenyan government, has suspected that this was al Qaeda at work. Why do you suspect that? What do you see?

ALAYON: Well, there could be al Qaeda involvement, but no doubt there are Palestinian terror organizations. Palestinian terror has been striking in the past globally, whether in Europe, whether here. And certainly throughout the Middle East.

The problem now is the cooperation of Palestinian terror organizations with al Qaeda and other terror organizations, Hezbollah and the rest. It has to be thoroughly investigated and, certainly, we are prepared to do that.

SAVIDGE: Ambassador, I thank very much for joining us. That is Israel's ambassador to the United States, Daniel Ayalon.

Well we have just received word that President Bush has issued a statement about the terror attacks today. We're going to go live now to Crawford, Texas, and CNN's Senior White House Correspondent John King with that -- John.

KING: Marty, the president's tough statement coming on top of statements issued earlier today by the Secretary of State, Colin Powell, and the White House spokesman just issued from the Bush ranch here in Crawford, Texas. Let me read to you in its entirety the president' statement. Mr. Bush saying, "I condemn in the strongest possible terms the terrorist attacks today at the Likud party polling place in northern Israel and the Paradise Hotel in Mombasa, Kenya, as well as the attempted attack on a civilian airliner shortly after it took off from Mombasa's international airport. I want to extend my condolences to the victims and their families, and to the governments and peoples of Israel and Kenya.

Today's attacks underscore the continuing willingness of those opposed to peace to commit horrible crimes. Those who seek peace must do everything in their power to dismantle the infrastructure of terror that makes such actions possible. The United States remains firmly committed, with its partners around the world, to fight against terror and those who commit these heinous acts."

That a statement issued by the president, Marty, just moments ago. He is, of course, here in Crawford for the Thanksgiving holiday, but being kept up to speed on the developments. U.S. officials on the point you were just making say too soon to say whether there is any al Qaeda involvement, but they are offering resources to both the Israeli and the Kenyan governments in the investigations -- Marty.

SAVIDGE: John King live in Texas. We'll stay in touch, thank you.

The long reach of terror. How one nation's tourism industry has suffered without even having a major attack.

And could you wear someone else's face? The mind-boggling innovations behind face transplants.

(COMMERCIAL BREAK)

SAVIDGE: If al Qaeda carried out today's missile attack on an Israeli jetliner in Kenya, it would mark a major addition to the terrorist group's arsenal. CNN has reported extensively on the attempts by al Qaeda to acquire heat-seeking missiles like the stinger. Joining us for more on this is CNN National Correspondent Mike Boettcher. And it is a disturbing development, Mike.

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT: Oh, absolutely. And some people are pointing towards al Qaeda as the main suspect, some to Palestinian groups, or a combination of both of them. But one thing we know for sure, al Qaeda does have surface-to-air missiles in their inventory.

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): Two missile launchers were found 300 meters from the end of the runway in Mombasa. The launchers appear to be variance of the Russian-designed SAM-7 (ph). Al Qaeda's interest in surface-to-air missiles is clear from their own videotape archives obtained exclusively by CNN last August. One videotape included this, a lengthy and detailed video presentation of how to fire a SAM-7 (ph).

In another al Qaeda tape, produced before the group was forced to flee Afghanistan, classroom instruction is applied in the field. Hooded al Qaeda operatives at a location believed to be in Afghanistan take what appears to be a Chinese variant of the Russian SAM-7 (ph) known as a red cherry, assemble it, then actually fire it.

Al Qaeda had also committed their knowledge to paper. These manuals discovered in an al Qaeda safe house, after the fall of Kabul to coalition forces, contain instruction in how to use several times of surface-to-air missiles, including American-made stingers. Still, surface-to-air missile systems are not foolproof.

If infrared guided missiles like the SAM-7 (ph) do not lock on to an aircraft's jet exhaust, the heat-seeking missiles will miss their target. That was apparently the case in the failed Mombasa attack. And in another failed attack last May in Saudi Arabia, in which investigators believe a Sudanese man with al Qaeda links fired at a U.S. plane as it took off from the Prince Sultan Air Base.

Kenyan officials blame al Qaeda for the Mombasa suicide bombing and missile attack. But in Beirut, Lebanon, a previously unknown group called the Army of Palestine claimed responsibility, saying it was meant to coincide with the November 29, 1947 United Nations decision that partitioned Palestine and allowed for the creation of Israel.

BOETTCHER (on camera): CNN has learned that anti-terror coalition intelligence sources are investigating whether this most recent attack is the work of several groups acting together. Attention is being focused on al Qaeda and Lebanese Hezbollah, which previously has been accused of launching attacks against Israeli targets outside the Middle East.

(voice-over): And according to those same sources, this man, Saif al-Adel (ph), whose name appears on the FBI's most wanted terrorist list, is getting close scrutiny. An al Qaeda operative with close ties to Lebanese Hezbollah, al-Adel (ph) is already wanted in connection with the 1998 attacks on U.S. embassies in Kenya and Tanzania. Coalition intelligence sources point out that if anyone had the experience and means to plan a combined attack in Africa, it is Saif al-Adel (ph).

(END VIDEOTAPE)

BOETTCHER: And Saif al-Adel (ph) has other history in Africa. He trained with and fought with Somalis who attacked U.S. soldiers in Mogadishu that was depicted in the book and movie "Blackhawk Down," as well he's suspected of being a coordinator in the attacks on the USS Cole, that suicide boat attack that occurred in Yemen -- Marty.

SAVIDGE: Mike, let me ask you this. How unusual would it be, as you mentioned the combination prospect at the top there, how unusual could it be that al Qaeda would mix with another organization?

BOETTCHER: Well it was thought before that this was virtually impossible and it wouldn't happen. But before the 9/11 attacks, we were investigating this and found there had been contacts dating back to 1994, when a top leader of Hezbollah and also Osama bin Laden met in Khartoum in Sudan. And contacts have carried along the way, according to our coalition intelligence sources. But based on specific needs for specific attacks, sort of a tactical alliance.

SAVIDGE: All right. That would be a disturbing development. Mike Boettcher, thank you very much.

Repercussions from last month's terror attack on the island of Bali are being felt across Asia, especially in the tourism industry. And perhaps nowhere more than in Thailand's top island resort. CNN's Tom Mintier reports on that.

(BEGIN VIDEOTAPE)

TOM MINTIER, CNN BANGKOK BUREAU CHIEF (voice-over): This is Patong (ph) beach in Puket (ph), Thailand, where bartenders juggle flaming cocktails, bar girls gyrate, and tourists congregate. Music pounds the eardrums; blazing neon turns the night into day.

It is the place where many governments are warning or advising tourists not come. Fears of another terrorist attack like in Bali. The warnings and advisories have angered the Thai Prime Minister Thaksin Shinawatra.

THAKSIN SHINAWATRA, THAI PRIME MINISTER: ... and also, I would like to ask the country, like U.S., if U.S. are so nervous too much about it, then you serve the purpose of the terrorism.

MINTIER: But the United States ambassador to Thailand says his government warned its citizens to be cautious but did not say don't come to Thailand.

DARRYL JOHNSON, U.S. AMBASSADOR TO THAILAND: I think after the Bali bombing in the middle of October one has to assume that no place is completely safe, including the U.S. And I think we have to assume on the basis of this warning that was issued last week that the terrorists are sufficiently organized and sufficiently determined to try to carry out terrorist acts.

MINTIER: The ambassador says his government must provide information it has to the public. That information has had a dramatic impact on tourism in Puket (ph). This restaurant normally has 1,000 customers a night. Now the number is about 600. Empty tables are clear evidence of the impact.

UNIDENTIFIED MALE: I think it's only rumors.

MINTIER (on camera): But it hurts you?

UNIDENTIFIED MALE: It hurts everybody.

MINTIER (voice-over): Not just here on Patong (ph) beach, where during the day there are plenty of empty beach chairs, but here at five-star hotels like the newly opened J.W. Marriott resort and spa. Europeans and Japanese make up about half of the hotel's customers. Many are staying away. UNIDENTIFIED MALE: This month, for the month of November, we've had some cancellations. It could have affected our business as much as eight to 10 percent

MINTIER: Puket's (ph) governor says the warnings have affected others even harder. To demonstrate how safe Patong (ph) beach is, he took us on a tour.

UNIDENTIFIED MALE: Everything OK here?

UNIDENTIFIED FEMALE: Everything OK.

UNIDENTIFIED MALE: Not worried?

UNIDENTIFIED FEMALE: Not worried.

MINTIER: The government has also taken steps to ensure security. Police roadblocks search for weapons and drug; police officers are just about everywhere. Even where they are not, they are watching.

Closed circuit TV cameras scan the streets for trouble. More are being installed. Private security firms are doing a good business. Everyone entering a bar is frisked for weapons.

UNIDENTIFIED MALE: We look after the place (UNINTELLIGIBLE) the nightlife there.

MINTIER: The governor did admit there were threats against two locations. This club, called Tiger, and here, at the Banana Disco.

(on camera): It's just after midnight here on Patong (ph) beach. These mini buses are parked in front of a disco with permission. They have already been checked by police.

(voice-over): While customers dance inside, police patrol outside. Unlike Bali, where a parked vehicle in front of a club caused massive casualties, here mini cabs are constantly being watched. Tourism officials in Puket (ph) say while the warnings and advisories have hurt business, they feel with increased security and no indents things will soon return to normal.

UNIDENTIFIED MALE: Now we are running about 60 percent, I think. And we expect to have about 70. And next year we plan to have 75. With this -- if all goes well, I think it will be OK.

MINTIER: Many holiday travelers did not really cancel their vacations, but simply delayed them for a few months. Everyone here is hoping that the yellow caution light will return to green in the next few months and Puket (ph) will once again be normal. Tom Mintier, CNN, Thailand.

(END VIDEOTAPE)

SAVIDGE: It's the stuff of science fiction. Or is it? Transplanting someone else's face on to your own. It is closer to reality than you might think. That story just ahead. (COMMERCIAL BREAK)

SAVIDGE: A British doctor says he's on the verge of performing what sounds like a bizarre kind of surgery, a face transplant. But as CNN's Robin Curnow reports, there is a real need for the procedure.

(BEGIN VIDEOTAPE)

ROBIN CURNOW, CNN CORRESPONDENT (voice-over): When the movie "Face Off" came out it seemed like an unbelievable Hollywood story line. Transplanting one face on to another. But science fiction could soon become medical fact. Dr. Peter Butler, a British plastic surgeon, did a full-face transplant that will be medically possible within a year.

DR. PETER BUTLER, PLASTIC SURGEON: So we make an incision in the front of the ear here, which is an incision we make in a face-lift, which actually heals cosmetically very well. And encroaching on to the hairline to include the forehead with or without hair if required. Then moving forward in subcutaneous (UNINTELLIGIBLE) to include the forehead, eyebrow, upper and lower eyelids, cheek, chin and lips. With the nose or ears, if required.

CURNOW: Full or partial face transplants would help people like Christine Piff. She had cancer and now runs a charity called Let's Face It, counseling burn, cancer and accident victims, many of whom she says would be willing to have somebody else's skin, bone and muscle transplanted on to their face.

CHRISTINE PIFF: If they could have the kind of surgery that would give them their lives back or restore the quality of life, surely that is a good thing.

CURNOW: But will people will willing to donate their faces when they die, even if the transplanted face is likely to look different on a new owner?

UNIDENTIFIED MALE: It's a difficult scenario to give an answer to but I can see a case for it.

UNIDENTIFIED MALE: Its a moral argument, and the fact they will -- you'll see that person's face again, I don't think that's really something that should be done. Someone's dead, they're dead.

CURNOW: Dr. Butler's pioneering proposals are being debated before the British Association of Plastic Surgeons this week. All aware that public debate is crucial if the technique is to become a reality.

BUTLER: The technical side of the transplant is not the big issue. I think it's the moral and ethical problems that we will face, and that's where I think there needs to be a full and frank and public debate about it.

CURNOW: A debate many with facial injuries and deformities never thought was possible. Robin Curnow, CNN, London. (END VIDEOTAPE)

SAVIDGE: You still have time to weigh in on our question of the day. Should all commercial airliner planes be equipped with missile evasion technology even if it's expensive? You can log on to cnn.com/wolf to vote. The result when we come back.

(COMMERCIAL BREAK)

SAVIDGE: All right. Here is our how you have been weighing in on our Web question of the day. Remember earlier we asked you this: Should all commercial airlines be equipped with missile evasion technology even if it's expensive? Sixty-one percent of you said yes, while 39 percent of you said no. We will update these results at the end of our next hour. This is not, we point out, of course, a scientific poll.

I'm Martin Savidge at the CNN Center in Atlanta. For our international viewers, a special edition of "INSIGHT" is next. For our domestic viewers, stay tuned for more of thie special edition of WOLF BLITZER REPORTS right after this "News Alert."

(NEWS ALERT)

SAVIDGE: A day of terror, twin attacks against Israeli targets in Kenya. Suicide bombers strike a hotel.

UNIDENTIFIED FEMALE: We are horrified and saddened that yet again we are experiencing attacks on terrorists.

SAVIDGE: And an airliner is targeted by missiles.

UNIDENTIFIED MALE: We saw two white stripes passing us by on the left side.

SAVIDGE: If terrorists have missiles, who's next?

UNIDENTIFIED MALE: Today it's an (UNINTELLIGIBLE) plane, tomorrow it's a British Airways plane or a Lufthansa plane or Air France plane.

SAVIDGE: And in Israel, a bus station and election polling station are attacked by gunmen.

UNIDENTIFIED MALE (through interpreter): We must use everything at our disposal to combat terrorism.

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS, Day of Terror.

Substituting for Wolf Blitzer, here's Martin Savidge.

SAVIDGE: Welcome back.

It is Thanksgiving Thursday, November 28, 2002. It is good to be with you. But the news is not necessarily good. It was a day of terror for Israelis at home and abroad. An Israeli-owned resort hotel was blown up by suicide bombers in Kenya as missiles were fired at an Israeli jetliner nearby. Within Israel, a bloody election day shooting attack.

We begin with James Mace.

(BEGIN VIDEOTAPE)

JAMES MACE, ITV CORRESPONDENT (voice-over): It is called the Paradise Hotel, and for the tourists who came here, it was a little corner of paradise on the East African coast, until men driven with suicidal fanaticism decided they were a soft target.

Israeli owned, known to be filled with Israeli tourists, the security gates were no obstacle as a four-wheel drive vehicle laden with explosives crashed through into the main foyer and exploded.

Many of the victims had just arrived and were heading for their rooms.

UNIDENTIFIED FEMALE: We got the keys for the room, and people started to leave for their room. And when the last people stayed in the lobby to get their keys, there was a very big bomb near the lobby, and the whole roof started to go on fire. And I think the most people to get hurt were some of the people from us, and some of the people that were (UNINTELLIGIBLE) us (UNINTELLIGIBLE).

UNIDENTIFIED MALE: I wake up, I see all the hotel fire, many people cry, many people with problem.

MACE: Fifteen dead, more than 80 injured, many critically. In a crowded hotel, it could have been much worse.

The Israelis had been planning to spend the upcoming Hanukkah holiday here, but most will now head straight home.

UNIDENTIFIED FEMALE: You have to go to Israel to (UNINTELLIGIBLE).

UNIDENTIFIED FEMALE: We miss our family.

UNIDENTIFIED FEMALE: We miss our family.

MACE: But for all the carnage here, the bombing of the hotel was supposed to have been the sideshow.

This is the evidence of what had been planned as the biggest terrorist attack ever against Israelis, a used antiaircraft missile launcher lying less than a mile from Mombasa Airport.

And this was its target, a Boeing 757 packed with 261 passengers and 10 crew. Eyewitness talk of the missiles passing just meters from the aircraft's wing.

Most passengers were not aware of how close they'd come to disaster until told by the captain an hour before landing. Then, as this amateur video shows, they looked out of the window to see two F- 15 fighters from the Israeli air force escorting them home and checking the airliner for damage before it landed.

As they touched down at Tel Aviv's Ben Gurion Airport, all 260 burst into spontaneous applause. "Shalom, shalom," they sang, people spared death only by the inaccuracy of the weapons fired at them. Truly some of the luckiest.

James Mace, ITV News.

(END VIDEOTAPE)

SAVIDGE: In Israel, where a bitter primary campaign focused on the issue of security, there was no security to be had in the northern town of Beth Shein (ph). Palestinian gunmen staged an election day attack on a bus station and a Likud Party polling station.

Let's go live to CNN's Jerrold Kessel in Tel Aviv -- Jerrold.

KESSEL: Marty, anticipation building here of the expected arrival within the next several minutes of Prime Minister Ariel Sharon and his foreign minister, Benjamin Netanyahu, a man who's been reelected to head the Likud Party, and the man who he defeated in what was a pretty bitter campaign for the leadership of the right-wing party.

But it was a backdrop that was a very somber backdrop and which has overshadowed this election campaign, a rolling day of terror, because no sooner had those twin attacks unfolded in Kenya, and there was a sigh of relief that the airliner had come back safely, then there was an outbreak of shooting in the northern Israeli town of Beth Shein and there was more bloodshed, plenty of it, there.

Six Israelis killed, more than 25 wounded, several very seriously, by two Palestinian gunmen who also lobbed hand grenades, including into the people voting in the Likud primaries, before they were shot and killed by Israeli security.

Israeli leaders are charging the Palestinians are trying to sway their election campaign, this primary election and the upcoming general election at the end of January.

And the man who will head the right-wing camp into that election will be none other than the current prime minister, Ariel Sharon. He trounced Benjamin Netanyahu in these primaries. It appears that the rolling day of terror did not faze Sharon's supporters, and seems over 20 percent margin dividing the two men in Sharon's favor.

Ariel Sharon then now having seen off the Netanyahu challenge will face up on January 28 to the challenge of the center-left Labor Party. And all polls predict that this, what we've seen today, will be a precise rehearsal for what happens on January 28.

Ariel Sharon is headed to become Israel's prime minister again if the polls prove accurately, whether or not there is a continuation of Palestinian terror against Israelis, Marty.

SAVIDGE: Jerrold, what are we to make of this lopsided victory for Ariel Sharon? Is it Likud voters simply felt this was not the time for change?

KESSEL: I think it's more than that. I think, first of all, there was a campaign in which Mr. Netanyahu made just about every mistake in the book. But beyond that, Ariel Sharon has managed to fashion for himself, in contrast to all his record, all his image in the past, and despite two years when one what might say not only his opponents but many of his supporters that he hasn't been the most successful in bringing Israelis what he promised to bring them when he first came to power nearly two years ago -- peace, security, and unity.

He hasn't achieved that. And yet he's squarely in the middle of the political map, and he's answering the Palestinian challenge as the best man qualified to do so. So think the majority in the Likud, and according to the polls, so think the majority of Israelis.

SAVIDGE: Jerrold Kessel live in Tel Aviv. There is victory, but obviously no celebration, not tonight. Thank you very much.

Well, authorities don't know who carried out the terror attacks in Kenya, but various clues do point to al Qaeda.

CNN senior international correspondent Sheila MacVicar in London with that.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN SENIOR INTERNATIONAL CORRESPONDENT: Israeli intelligence sources have confirmed to CNN that Kenyan authorities have recovered two missile launch tubes from the field next to the airport. Missile launch tubes from -- apparently coming from the two missiles that were fired at that Israeli airliner.

We understand that they are SAM-7s, a missile type known -- also known as Strellas (ph), and not the more sophisticated Stinger or SAM- 18 missiles, both of which are heat seeking and would almost certainly have hit the aircraft, bringing it down.

Now, it's not possible to say as a result of this discovery precisely who is responsible for the attack today, because both al Qaeda and other groups are known to possess SAM-7s. Al Qaeda, however, has in the past attempted to use SAM-7s against coalition aircraft, in that case, in May 2002 against a U.S. plane that was taking off from a Saudi air base.

At that time, the FBI issued a warning to commercial airlines in the United States, saying that it was possible that al Qaeda might attempt to carry out an attack against commercial airlines in the future, using a SAM-7-type missile, that warning in May of this year, adding that the FBI at that time had no specific knowledge of such an attack. Now, in addition to that, it is known that other terror groups, including Hezbollah, have been in possession of SAM-7s for at least two years, the Lebanese media reporting Hezbollah communiques confirming the arrival of the missiles.

The Israeli air force having to make modifications to their planes in order to protect them against the possible launch of those missiles as they fly over south Lebanon.

Now, it's not possible to know, because of the missile type, what group has been involved. There are some other clues which do point us in the direction of al Qaeda. On the Internet this afternoon, and being reported by various Arab media sources, picked up by Israeli army radio, there are claims that two of the three suicide bombers who died in today's attacks have been identified, both of them names well associated with al Qaeda, and perhaps a clue, if true, that this was authored by al Qaeda.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

SAVIDGE: President Bush was briefed on the attacks at his ranch near Crawford, Texas, where he is spending the holiday, and he has issued a statement.

CNN senior White House correspondent John King traveling with the president in Texas now. What's the president saying -- John.

KING: Marty, the president not long ago issuing a statement saying he condemns these attacks in both Kenya and Israel in the strongest possible terms. The president offering his condolences to the victims and his support to the governments of Israel and Kenya.

U.S. officials saying the United States also stands ready to assist in those investigations. The president in his statement also said, and let me quote from it, "Today's attacks underscore the continuing willingness of those opposed to peace to commit horrible crimes. Those who seek peace must do everything in their power to dismantle the infrastructure of terror that makes such actions possible."

Mr. Bush goes on and concludes his statement by saying, "The United States maintains its commitment to the global war against terrorism."

On the question, Marty, Sheila MacVicar was just discussing, could al Qaeda be involved here, White House officials taking a cautious wait-and-see attitude. Obviously the use of those surface- to-air missiles in Kenya, a country in which al Qaeda has operated before, raises concern and suspicions.

White House officials, though, say they will wait and see what the evidence from the investigation unfolds. They are also voicing some concerns about a possible effort to stoke up anti-Israeli, anti- American sentiment in the Arab and Muslim worlds at a critical juncture, of course, in the confrontation with Iraq, Marty.

SAVIDGE: And that brings up the issue of an Israeli response, especially if it's a military one. How does that complicate beyond what you just said?

KING: Well, there is a great concern in the United States government. President Bush has directly appealed repeatedly to Prime Minister Sharon, as have other top officials, to show restraint when there is violence against Israel, not telling Israel not to respond. The United States recognizes Israel's right to respond to any terrorist strikes, but there would be a great concern if Israel projected force outside of the Palestinian territories.

In fact, you have heard Israeli spokesmen, you had the ambassador to the United States on earlier, saying Israel will respond if it finds the culprits. That could dramatically complicate any U.S. diplomacy in the Middle East at a time the United States wants support from Saudi Arabia, from Bahrein, from Jordan, from Egypt, from other Arab nations. If there is a prolonged military confrontation involving Israeli force, that would significantly complicate U.S. diplomacy. They know that full well at the White House, Marty.

SAVIDGE: It would be a problem. John King live from Crawford, Texas, thank you.

Terrorism and your security. Today's attack begs the questions, how vulnerable are you on planes? And how vulnerable are you when you're overseas?

And Israeli leaders fire the first salvo back at the terrorists. But what actions will Israel take?

(COMMERCIAL BREAK)

SAVIDGE: The terror attacks in Kenya serve up a very chilling question. Just how safe are American airports and jetliners from terrorist missile strikes?

CNN's Patty Davis is at Reagan National Airport in Washington with that -- Patty.

DAVIS: Well, Marty, U.S. aviation officials don't believe al Qaeda is planning to use these shoulder-fired missiles against U.S. commercial airplane, but they are not counting out that possibility.

(BEGIN VIDEOTAPE)

DAVIS (voice-over): A narrow escape for this Israeli charter plane, two portable missiles fired near the Mombasa Kenya Airport missed their target.

UNIDENTIFIED MALE: Today they fire missiles at Israeli planes, tomorrow they'll fire missiles at U.S. planes, British planes, planes from every state.

DAVIS: Just weeks ago, U.S. security officials met with airline executives in Washington to discuss, among other issues, the possibility that shoulder-fired missiles like this one, shown in an al Qaeda training video, could be used against U.S. commercial airliners.

Last May, after an apparent attempt by al Qaeda to shoot down a U.S. military plane in Saudi Arabia with such a weapon, the FBI and the Transportation Security Administration warned airlines and local law enforcement that it could happen in the United States but did not ask them to take any special precautions.

In fact, in its alert, the TSA said, "There is no information indicating that al Qaeda is planning to use MANPADs or shoulder-fired missiles against commercial aircraft," but it added, "The threat cannot be discounted."

UNIDENTIFIED MALE: It's unlikely, but it is possible, if one of these missiles has been smuggled in, particularly a Stinger. There are between 100 and 300 Stinger missiles from Afghan war days back in the 1980s still floating around unaccounted for. They are available on the black market.

DAVIS: Airplanes are most vulnerable to shoulder-fired missiles during takeoff and landing. Unlike U.S. military aircraft, U.S. passenger planes are not equipped with chaff and flares to draw heat- seeking missiles away, nor do they have technology to confuse an incoming missile's guidance system.

(END VIDEOTAPE)

DAVIS: So security at airport perimeters all the more important. Now, U.S. airports have beefed up airport security at their perimeters since 9/11, but terrorism experts say they need to do more, they need to do more patrols. They also need to be more vigilant about who they're allowing access to airport grounds, Marty.

SAVIDGE: Patty, do you have a rough idea of what the cost would be to try to equip airliners with any sort of technology to prevent this?

DAVIS: Well, it's interesting, in Israel, that country is thinking about using kind of an antimissile system for its commercial airplanes. The cost there, $10 million an airplane. And what that would do is basically detect a missile that's incoming and then deflect it, send out some kind of signal, a technology of some sort that would send it off of its target.

So pretty expensive system, Marty.

SAVIDGE: Absolutely, but it could well be worth it. All right, Patty Davis, thank you very much.

If you were with us last hour, here is one more chance to weigh in on this story. Once again, our Web question of the day, Should all commercial airline planes be equipped with missile -- that is, missile evasion technology, even if it is expensive?

We'll have the results later in the broadcast. You can vote at cnn.com/wolf, and while you're there, we of course would love to hear from you. Send us your comments. We'll try to read some of them at the end of this program. That's also, of course, where you can read our daily online column, cnn.com/wolf.

The State Department says its current worldwide travel warning is strong enough, and it won't be updated because of today's attacks.

But it is offering to help with the investigation, as CNN's State Department correspondent Andrea Koppel reports.

KOPPEL: Good evening, Marty.

Strong words today from Secretary of State Colin Powell, speaking out against those two terrorist attacks targeting Israelis from Israel all the way to Kenya. In a prepared statement, Secretary of State Powell said, "We condemn in the strongest terms the horrific terrorist bombing earlier today in the Paradise Hotel near Mombasa, Kenya, that killed at least 11 and wounded dozens, both Kenyans and Israelis. We also condemn in the strongest terms the terrorist shooting at a polling station in Beth Shein, in which three Israelis were killed and many more injured."

The statement went on to say that, "We also call on the Palestinians to take immediate and sustained steps to eradicate the infrastructure of terrorism and violence that has wrought such tragic bloodshed."

Now, despite today's attacks, State Department officials tell me, they made the decision not to update the worldwide travel warning that's already in effect. They said that it's strong enough, and it should stand alone. Americans obviously need to be on alert wherever they go.

The State Department did, however, make the decision to send two of its foreign nationals from its embassy in Nairobi, Kenya, to go to Mombasa, they said, to help out both Kenyan and Israeli investigators, Marty.

SAVIDGE: Andrea Koppel at the State Department, thank you.

What today's attacks may mean in the wider war on terror. CNN security analyst Kelly McCann weighs in just ahead.

And far from today's attacks, two other countries suspect they're targets overseas (ph).

(COMMERCIAL BREAK)

SAVIDGE: For more on today's terror attacks in Kenya, we're joined on the telephone now by CNN security analyst Kelly McCann.

Kelly, thanks for being with us. I got a lot of questions for you.

First of all, what can be done, if anything, on the part of civilian aviation to be protected from these kind of attacks? KELLY MCCANN, CNN SECURITY ANALYST (on phone): Well, of course, Marty, anything that we do is going to mean that we've got to expend some money towards that end, and right now, the aviation industry, as you know, is really hurting.

But some things that can be done is, we can expand the buffer area around the perimeter of those civilian aviation centers, and keep a schedule that is difficult to predict, sometimes using dogs, sometimes, it's just a presence, it sends the message that if you're out there, there is a significant chance that you'll be seen.

In order to set up, they'd have to actually go out there and plan to make sure that they could make the shot, et cetera. So things like that that are a little bit more manpower-intensive and would require more astute understanding of what's going to make these people not want to target us as in this manner.

SAVIDGE: And what about the kind of technology you might find on a fighter aircraft? Is that feasible?

MCCANN: Well, I heard an interesting statistic last week, as a matter of fact, on Lou Dobbs's show. And Lou had said that the -- Wall Street had basically estimated that the airline industry was worth right now $15 billion, but they were operating at a $75 billion deficit right now, which would lead me to believe that nobody is going to want to take out of their bottom line that kind of money, $10 million per aircraft, as Patty had said, in order to correct a problem that hasn't really had a precedence here in the United States yet.

So I think that's unlikely.

SAVIDGE: All right. Well, let's talk about the missiles themselves, the ones we believe that were used, the Strellas or the SAM-7s, I believe they're called. What kind of missile are they?

MCCANN: Basically, it's a Russian-made weapon that's very similar in characteristic to the Stinger series. The thing that makes us think that that would be the weapon, of course, would be that Stingers here in the U.S. are very tightly controlled, and we have a whole different system of the way that we maintain our weapons.

However, we know that 3 to 7 percent only of all the containers coming into the United States are actually X-rayed, checked, and their contents, you know, verified. So it's reasonable to believe that if a weapon of that type was going to be used, it would not be a Stinger, but it would be one of the more common forms of battlefield weapons you find overseas, which is the SAM series.

SAVIDGE: And how easy is it to, say, get one and use it?

MCCANN: They're extremely easy to operate, Marty, because remember, the average person on the battlefield needs to be able to be trained on the use of it without onerous training. So it's not that difficult a weapon to use once you understand its characteristics, have a clear line of sight. It's basically a fire-and-forget weapon, which also means once the shooter presses the trigger, he's able to leave the point that he fired from and be mobile, so he'd be difficult to catch.

SAVIDGE: But it's not infallible. I mean, they fired two of them at this aircraft at relatively low altitude and missed.

MCCANN: For whatever reason, and that could be an anomaly in the system. There are mutations of those weapons systems out there. Some of them are outdated. They do have a shelf life. Some of them have been altered, either by the original owners or by people who believed they were making them more -- or better weapons systems.

So it's hard to tell why they didn't connect with the airline. But it was a good Thanksgiving Day gift.

SAVIDGE: It was indeed, the fact that those two missiles did miss. Kelly McCann, thank you very much for talking to us on the telephone regarding security.

Meanwhile, fear of terrorism has prompted embassy closures in the Philippines.

CNN's Maria Ressa reports the threat's being called specific and credible.

(BEGIN VIDEOTAPE)

MARIA RESSA, CNN CORRESPONDENT (voice-over): Last week, the Philippine police say they saw five men taking pictures on what seemed to be a surveillance mission outside this building. When they tried to stop them, they ran away. On Wednesday, Australia closed its embassy in Manila, followed shortly on Thursday by the European Union, which has its office in the same building.

A few blocks away, the Canadian embassy also decided to close, an official there says, because of credible threats of attacks.

Australia's foreign minister said, quote, "It's a very specific threat. It is not only location specific, targeting the Australian embassy itself, but it's also time specific, in the sense we're talking in the next few days."

The U.S. embassy was closed Thursday because of the Thanksgiving holiday, but plans to open Friday.

Filipino authorities have been on high alert since explosions in Bali six weeks ago killed nearly 200 people. That, as well as explosions in the Philippines, have been blamed on Jamah Islamia (ph), al Qaeda's arm in Southeast Asia.

Its leader, Riduan Isamuddin, a.k.a. Hambali, intelligence officials say, sits on al Qaeda's leadership committee and was behind a similar series of explosions in the Philippines and Indonesia two years ago. Two of his key Indonesian operatives are in Philippine custody, one whose group has been directly linked to the Bali explosions.

August Duacarna (ph), authorities here say, was the head of La Scargandella (ph), which set up an al Qaeda training camp in Indonesia. After he was arrested, Duacarna was replaced by a man named Shawai (ph), who intelligence officials say was a key planner of the Bali blasts.

(on camera): There's no doubt al Qaeda's network remains deeply entrenched in the region, but in the past two weeks, several arrests in Malaysia and Indonesia have taken out lower-level operatives. The only way to effectively deal with this threat, officials here say, is to dismantle the network cell by cell, member by member.

Maria Ressa, CNN, Manila.

(END VIDEOTAPE)

SAVIDGE: On the scene of today's attack in Kenya, a first responder tells us what he saw in the carnage, and how he helped the victims.

And a suspicious find in Iraq. We'll tell you what U.N. weapons inspectors came across and why they pressed the Iraqis for answers.

(COMMERCIAL BREAK)

SAVIDGE: Welcome back to this special edition of WOLF BLITZER REPORTS, Day of Terror. I'm Martin Savidge, filling in for Wolf.

Our top story, twin terror attacks in Kenya, missiles fired at a chartered jetliner. Minutes later, a deadly suicide bombing in a hotel, the target, Israelis.

CNN's Charles Molineaux reports.

(BEGIN VIDEOTAPE)

MOLINEAUX: Mombasa's seaside Hotel Paradise became a scene of hell on earth as bloodied survivors staggered to the beach or just stared, dazed, at the ruins.

More than a dozen people were killed, including two Israeli children and three suicide bombers.

Thursday morning, a green vehicle full of explosives approached the hotel. It was turned away, but then came back and rammed through the gate. One man jumped out and blew himself up inside the hotel. The other two set off the explosives in the vehicle.

The blast tore apart the wooden and bamboo building and sent shattered glass flying.

UNIDENTIFIED FEMALE: There was a big boom, and all the glasses went -- even the glasses of the room was spread all over, and we were lucky, because we were in the corner of the room, because...

UNIDENTIFIED MALE: I wake up. I see all the open fire. Many people cry. Many people (UNINTELLIGIBLE) problem. UNIDENTIFIED FEMALE: We took our stuff and run to the sea. (UNINTELLIGIBLE) he told us not to (UNINTELLIGIBLE) if anyone could stop you, but to just (UNINTELLIGIBLE). (UNINTELLIGIBLE)

MOLINEAUX: The hotel was Israeli-owned and popular with Israelis...

(INTERRUPTED BY CNN COVERAGE OF BREAKING NEWS)

SAVIDGE: Now back to that terror attack in Kenya. Farid Abdulkadir is of the Kenyan Red Cross and he was in charge of the relief effort at the Paradise Hotel. He joins us by telephone from Mombasa.

Thank you sir for being with us. If you would, describe the scene.

FARID ABDULKADIR, KENYAN RED CROSS (by phone): Thank you Martin. Yes, when we arrived at the scene, one of the things that we saw a building that was burning and bodies that were burning. Our people were able to take some of the injured people to hospital and at the same time transported bodies to the mortuary. We were able to transport a total of eight bodies, which were believed to be from the local community, and five bodies, which are presumed to be those of Israelis.

SAVIDGE: Was it obvious to you that this was a terrorist attack from the moment you got there?

ABDULKADIR: When we were there, the question, the most important things to us as an organization was to help the people, both the living and the dead, and that is what we concentrated on.

SAVIDGE: Of course, and how about those that have been wounded? How are they being cared for now and do you have enough to take care of them?

ABDULKADIR: Yes, I would say so. Most of the people want to get to private hospitals (UNINTELLIGIBLE) hospital and the (UNINTELLIGIBLE) hospital. These are hospitals that are well equipped and have all the modern facilities to provide health services. And frankly speaking, the number of people were injured were minimum compared to what we saw in 1998 during the conflict in Nairobi at the U.S. embassy.

SAVIDGE: Do you think and having heard that this hotel lobby was crowded with people that it could have been much worse?

ABDULKADIR: Yes it could have been much worse, but the good thing is the hotel is located at a very remote area in Mombasa. So I would say the location, the nature of the (UNINTELLIGIBLE) was a hotel, which was of course restricted entry. I would say that is what really minimized the number of fatalities that were encountered.

SAVIDGE: Thank you sir very much for joining us. That was Farid Abdulkadir. He is with the Kenyan Red Cross and one of the first responders after that attack.

Moving on now, targeted by a pair of missiles, passengers on an Israeli charter flight from Kenya have reached the relative safety of home. CNN's Matthew Chance reporting on that.

(BEGIN VIDEOTAPE)

CHANCE (voice-over): Relief in Tel Aviv, their aircraft survived the twin missile attack. Disaster over Mombasa was avoided. On arrival, passengers were met by loved ones. Amid emotional scenes, they spoke of their flight from Kenya so nearly brought to a violent end.

UNIDENTIFIED FEMALE: We heard a bump and they told us at first that they think a bird is stuck in the engine, but they didn't - they knew from the start what was going on, and they didn't tell us the whole flight.

UNIDENTIFIED MALE: (UNINTELLIGIBLE)

UNIDENTIFIED FEMALE: (UNINTELLIGIBLE) was dealing just everything as usual.

CHANCE: A home video recorded in the final minutes of the flight shows Israeli warplanes escorting the airliner into Tel Aviv. Nearly six hours after takeoff, passengers had only just been told what happened.

UNIDENTIFIED FEMALE, (through translator): A missile tried to intercept us, says this woman. We were afraid. We don't know how the plane will land.

CHANCE: Touchdown was met with celebration. Arkia Flight 582, a charter, took off from Mombasa on Thursday morning, 262 risks on board. Only seconds later, police say at least two missiles were fired at the plane from the ground. The plane was unscathed. What appeared to be missile launchers have been found near by.

UNIDENTIFIED MALE: Right after takeoff from Mombasa, as we were retracting the landing gear, we felt some bump, which we had no idea at the time. It was a very small bump. We had no idea at the time what it was, and right after that we saw two white stripes passing us by on the left side from the back of the airplane towards the front, which disappeared after a few seconds.

CHANCE: Some of these passengers had themselves been staying at the Paradise Hotel in Mombasa, bombed just minutes after their plane came under attack, escaping death twice in one day, far better one says than not at all.

(on camera): Many of the passengers we spoke to told us they had chosen Mombasa in order to escape the tension and bloodshed of Israel. Israeli officials now warning of more threats against Israeli citizens overseas, many of these passengers are simply relieved to have made it home.

Matthew Chance, CNN, Ben Gurion Airport, Israel.

(END VIDEOTAPE)

SAVIDGE: If al Qaeda carried out today's missile attack on the Israeli jetliner in Kenya, it would mark a major addition to the terrorist group's arsenal. CNN has reported extensively on attempts by al Qaeda to acquire heat-seeking missiles like the Stinger.

Here's CNN national correspondent Mike Boettcher.

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): Two missile launchers were found 300 meters from the end of the runway in Mombasa. The launchers appear to be variants of the Russian design SAM-7. Al Qaeda's interest in surface-to-air missiles is clear from their own videotape archives obtained exclusively by CNN last August.

One videotape included this, a lengthy and detailed video presentation of how to fire a SAM-7. In another al Qaeda tape produced before the group was forced to flee Afghanistan, classroom instruction is applied in the field. Hooded al Qaeda operatives at a location believed to be in Afghanistan take what appears to be a Chinese variant of the Russian SAM-7, known as a "red cherry", assemble it, then actually fire it.

Al Qaeda had also committed their knowledge to paper. These manuals discovered in an al Qaeda safehouse after the fall of Kabul to coalition forces contain instruction in how to use several types of surface-to-air missiles including American made Stingers. Still, surface-to-air missile systems are not foolproof. If infrared guided missiles like the SAM-7 do not lock onto an aircraft's jet exhaust, the heat-seeking missiles will miss their target.

That was apparently the case in the failed Mombasa attack and in another failed attack last May in Saudi Arabia, in which investigators believe a Sudanese man with al Qaeda links fired at a U.S. plane as it took off from Prince Sultan Airbase. Kenyan officials blame al Qaeda for the Mombasa suicide bombing and missile attack.

But in Beirut, Lebanon, a previously unknown group called the Army of Palestine claimed responsibility, saying it was meant to coincide with the November 29, 1947 United Nations decisions that partitioned Palestine and allowed for the creation of Israel.

(on camera): CNN has learned that anti-terror coalition intelligent sources are investigating whether this most recent attack is the work of several groups acting together. Attention is being focused on al Qaeda and Lebanese Hezbollah, which previously has been accused of launching attacks against Israeli targets outside the Middle East.

(voice-over): And according to those same sources, this man, Saif Al-Adel, whose name appears on the FBI's Most Wanted Terrorist List is getting close scrutiny. An al Qaeda operative with close ties to Lebanese Hezbollah, Al-Adel is already wanted in connection with the 1998 attacks on U.S. embassies in Kenya and Tanzania.

Coalition intelligence sources point out that if anyone had the experience and means to plan a combined attack in Africa, it is Saif Al-Adel.

Mike Boettcher, CNN, Atlanta.

(END VIDEOTAPE)

SAVIDGE: Still ahead, U.N. inspectors find a place that was at one time dangerous, but is it still? We'll show you what they found and how the Iraqis responded just ahead.

And football and feasting in a potential war zone. U.S. troops take in the holiday just miles from the Iraqi border.

(COMMERCIAL BREAK)

SAVIDGE: United nations inspectors carried out a second straight day of hunting for suspected weapons of mass destruction in Iraq. Among the sites checked, a plant that at one time produced deadly toxins.

CNN senior international correspondent Nic Robertson is in Baghdad and he has the latest.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): One interesting detail to emerge from the inspectors who went to that animal vaccine facility on the south side of Baghdad, they said that in 1996, U.N. weapons inspectors following Iraq's declaration of producing some biological weapons there at that facility that they had destroyed the equipment the Iraqis had been using to make those biological weapons.

Botulinum toxin, which is the most deadly of all the biological warfare agents. However, following the destruction of those particular items of equipment, there were some other items that the Iraqi officials didn't declare part of that program, including a fermenter. Now the inspectors went ahead and tagged that equipment.

The inspection team who went back to that facility today said some items of equipment including that tagged fermenter couldn't be found. Now, they asked the Iraqi official present, where it had gone, what happened to it. The Iraqi official said it had been moved to another facility on the north side of Baghdad. The inspectors said OK, we'd like to go and see that and verify that piece of equipment.

They were given permission to do that, and according to the inspectors, they found all the items that weren't at the Daura facility on the south side of Baghdad. They found them and accounted for them at this other facility. This is the type of cooperation that the U.N. inspectors have been looking for from Iraqi officials and again, on their second day of inspections here an indication that in these early stages that is the type of cooperation they're getting. Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

SAVIDGE: It is Thanksgiving with a real edge for U.S. troops just across the border from Saddam Hussein's forces.

And some disturbing signs of how lean times really are for many Americans this Thanksgiving. That story just ahead.

(COMMERCIAL BREAK)

SAVIDGE: Many U.S. military personnel are far from home this Thanksgiving, but they do their best to keep up the spirit of this uniquely American holiday no matter where they are.

CNN senior international correspondent Walter Rodgers is with the American forces in Kuwait.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN SENIOR INTERNATIONAL REPORTER (voice-over): At Camp New York, 15 miles south of the Iraqi border, the U.S. Army's First Brigade Combat Team celebrated Thanksgiving running what they called a turkey trot.

At the U.S. Marine's Camp Commando they mustered to bagpipes because the unit commander is a Virginian of Scott's Irish descent. It was your traditional Hispanic American, African American, Asian American Thanksgiving away from home.

COL. JOHN CUNNINGS, U.S. MARINES: We also need to pay attention, always enforce protection, and we know in that regard Marines are always ready, right?

RODGERS: A Lutheran chaplain from the Navy offered a prayer of thanksgiving for the Marines.

LT. MATTHEW RICHARD, U.S. NAVY CHAPLAIN: You are the ones for whom a nation indeed many, many in this world are truly thankful.

UNIDENTIFIED MALE: Now thank we all our God...

RODGERS: And after thanking divine providence, it was off to a chow line. This day, the Marine senior officers served the men and women in their command.

COL. LAWRENCE BROWN, U.S. MARINES: Usually they're working for me, and this is just a small way of me paying them back.

RODGERS: It took 56 turkeys to feed the First Marine Expeditionary Force here.

UNIDENTIFIED MALE: It was great. It's great. It's a lot better than what we've been getting.

UNIDENTIFIED MALE: Outstanding. Outstanding.

UNIDENTIFIED FEMALE: It's great, sir. I'm a cook, so I mean it has to be good.

RODGERS: Even though it was Thanksgiving, military preparations did not pause, plenty of work to be done here before these units are ready for battle. So, the Marines held what they call the "Kuwait turkey bowl" while they wait for what they call the beans, bullets and band-aids to arrive.

(on camera): Football and feasting aside, there is no question these Marines miss their families during the holidays. The Navy chaplain told me the one question he's asked more than any other is how long do you think we'll be here? And he replies reminding them of the passage from the Lord's Prayer, which goes "Give us this day our daily bread". Beyond that, no one's making any predictions here.

Walter Rodgers, CNN with the U.S. Marines in the Kuwaiti desert.

(END VIDEOTAPE)

SAVIDGE: The holidays tend to be a good time of year for food banks with donations usually rising, but with the economy limping along that is not necessarily the case this year, as CNN's Rusty Dornin explains.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): No one needs to tell Angie Lewis times are tough. She stood in line for nearly an hour to get a holiday food basket.

ANGIE LEWIS, FOOD BASKET RECIPIENT: I got laid off. Actually I had a job for a few months and then they gave me -- they shorted my hours and so I'm looking for another job.

DORNIN: With the jobless rate in some major metropolitan areas like San Jose, New York and Miami in excess of seven percent, some who once lent a hand to charities now have their hands out. This New York soup kitchen even gets job hunters.

LARRY GILE, ST. JOHN'S BREAD & LIFE: There's a tremendous hunger for employment. People come to us constantly offering to volunteer, are we hiring? Can we help them?

DORNIN: The food bank in San Francisco gives groceries to thousands of needy in the Bay area, now it's in need.

PAUL ASH, SAN FRANCISCO FOOD BANK: If you walk into this warehouse for the first time, it looks like there's a lot of food here. But if you walk into your local grocery store and saw 40 of the shelves - 40 percent of the shelves empty like you see in our racks, you would notice the difference immediately.

DORNIN: Grocery stores once made huge contributions to food banks, not this year. ASH: Grocery chains no longer donate most of their dented and dinged cans and food items to food banks. They get resold.

DORNIN (on camera): When the shelves are this empty, food banks have to send trucks across country to get donation. This week San Francisco sent a truck to Alabama to pick up 20 tons of chicken.

(voice-over): That cost money, money many agencies don't have this year. Every year in downtown San Francisco more than 6,000 people eat a Thanksgiving meal at Glide Memorial Church. This year, talking turkeys, donations were down 60 percent.

(on camera): Are people more hard-hearted this year or are they just hard up?

REV. CECIL WILLIAMS, GLIDE MEMORIAL CHURCH: People are hard up. Before anything, during the holiday season, no matter how hard-hearted people may be, something happens. Their hearts melt and they become more responsive, but when you don't have, it's a different story.

DORNIN (voice-over): A story of holidays and for many, hard times.

WILLIAMS: So we're going to take in -- no doubt about it.

DORNIN: Rusty Dornin, CNN, San Francisco.

(END VIDEOTAPE)

SAVIDGE: Time is running out for you to weigh in on our "Question of the Day". Should all commercial airliners be equipped with missile evasion technology, even if it's expensive?

Log on to CNN.com/wolf to vote. We'll have the results immediately when we come back.

(COMMERCIAL BREAK)

SAVIDGE: Here's a chilling way to raise money for charity. It is also our "Picture of the Day".

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Eight, seven, six, five, four three, two, one.

UNIDENTIFIED MALE: Eight, seven, six, five, four, three, two, one.

UNIDENTIFIED MALE: Eight, seven, six, five, four, three, two, one.

(END VIDEO CLIP)

SAVIDGE: In temperatures well below freezing several dozen people plunged into chilly -- a chilly Connecticut lake this morning. It's a holiday tradition that raises money for the Muscular Dystrophy Association.

And finally we're going to have one last look at our Web "Question of the Day". Remember earlier we asked you this. Should all commercial airliners be equipped with missile evasion technology, even if it's expensive?

Sixty-one percent of you said yes. Thirty-nine percent of you said no. Of course, this is not a scientific poll.

That's it for us. Thanks very much. Have a happy Thanksgiving.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired November 28, 2002 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MARTIN SAVIDGE, CNN ANCHOR: I'm Martin Savidge. Stay tuned now for a special two-hour edition of WOLF BLITZER REPORTS on the simultaneous terror attacks, but first we've got a news alert.
(NEWSBREAK)

SAVIDGE: That's a look at our CNN news alert. A special edition of WOLF BLITZER REPORTS starts right now.

(BEGIN VIDEOTAPE)

SAVIDGE (voice over): Day of terror, suicide bombers blow up an Israeli-owned hotel in Kenya as missiles are filed at an Israeli airliner taking off nearby.

UNIDENTIFIED MALE: (Unintelligible) a little below to the plane.

SAVIDGE: Palestinian gunmen attack an Election Day crowd in Northern Israel.

ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): We will continue to act in whatever way seems to us to be suitable and appropriate in order to eradicate terror.

SAVIDGE: Who has these missiles? How safe are our skies?

BENJAMIN NETANYAHU, ISRAELI FOREIGN MINISTER (through translator): Today they fired missiles at Israeli planes. Tomorrow they'll fly their missiles at U.S. planes, British planes, planes from every state.

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS, DAY OF TERROR. Substituting for Wolf Blitzer here's Martin Savidge.

SAVIDGE: It is good to be with you. Hello to our viewers in the United States and around the world. Let's get started. Israelis were targeted at home and abroad on a day of terror. In Kenya, suicide bombers struck at an Israeli-owned resort hotel and missiles were fired at an Israeli airliner in Israel itself, a blood shooting attack. We begin our coverage with CNN's Catherine Bond joining us live now from Mombasa, Kenya - Catherine.

CATHERINE BOND, CNN CORRESPONDENT: Well, a picture emerging here of how 150 Israeli tourists survived at this hotel behind me in busses through the gate and only to find that minutes later a car broke through the barrier here containing three occupants according to eyewitnesses, three young men, which then exploded outside the hotel killing at least 13 people, some Kenyans and some Israelis and the suicide bombers themselves.

Kenyan police later discovering what appeared to be some sort of detonating device within the wreckage of the car. (Unintelligible) strewn across the hotel compound about 50 yards in all directions. The force of the blast blowing out shop windows at least 50 meters away over here and setting a light to the roof and to the (unintelligible) on the gates behind us. The fire then burned destroying much of the hotel. Throughout the day Red Cross workers worked to retrieve bodies from the hotel. They took out at least eight Kenyans and three Israelis - Martin.

SAVIDGE: Catherine Bond reporting live outside the Paradise Hotel, the scene of that attack. Moving on now, after escaping a missile attack, passengers on an Israeli charter flight from Kenya have reached the relative safety of home. CNN's Matthew Chance reports.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice over): Relief in Tel Aviv their aircraft survived the twin missile attack. Disaster over Mombasa was avoided. On arrival, passengers were met by loved ones amid emotional scenes. They spoke of their flight from Kenya so nearly brought to a violent end.

UNIDENTIFIED FEMALE: We heard a bomb. They told us at first that they think a bird stuck in the engine but they knew from the start what was going on and they didn't tell us (unintelligible).

UNIDENTIFIED MALE: (Unintelligible).

UNIDENTIFIED FEMALE: (Unintelligible) as usual.

CHANCE: A home video recorded in the final minutes of the flight shows Israeli warplanes escorting the airliner into Tel Aviv. Nearly six hours after takeoff, passengers had only just been told what happened. "The missile tried to intercept us" says this woman. "We're afraid. We don't know how the plane will land."

Touchdown is met with celebration. (Unintelligible) Flight 582, a charter, took off from Mombasa on Thursday morning with more than 260 tourists onboard, and seconds later police say at least two missiles were fired at the plane from the ground. The plane was unscathed. What appeared to be missile launches had been found nearby.

UNIDENTIFIED MALE: Right after takeoff from Mombasa as we were retracting the landing gear, we felt some bump which we had no idea at the time. It was a very small bump. We had no idea at the time what it was and right after that we saw two white stripes passing us by on the left side from the back of the airplane towards the front, which disappeared after a few seconds.

CHANCE: Some of these passengers had themselves been staying at the Paradise Hotel in Mombasa bombed just minutes after their plane came under attack, escaping death twice in one day, far better one said than not at all.

CHANCE (on camera): Many of the passengers we spoke to told us they'd chosen Mombasa in order to escape the tension and bloodshed of Israel. Israeli officials now warning of more threats against Israeli citizens overseas; many of these passengers are simply relieved to have made it home. Matthew Chance CNN, Ben Gurion Airport, Israel.

(END VIDEOTAPE)

SAVIDGE: Now to the northern Israeli town of Beit Shean. Palestinian gunmen opened fire at a bus station and a Likud Party polling station on this, a crucial election day. For that story and the results, we turn to CNN's Jerrold Kessel live in Tel Aviv -- Jerrold.

JERROLD KESSEL, CNN CORRESPONDENT: Marty, the polls haven't even opened for the Likud leadership election. When the news came through of that twin attack in Mombasa, Kenya just despite the horror of the outrage at the hotel in Mombasa, the size of relief was just sinking in as that aircraft which had been targeted by the surface-to-air missiles came home safely when there was news coming through of carnage from northern Israel because two Palestinian gunmen unleashed a barrage of shooting attacks, went on a shooting spree throwing hand grenades killing six Israelis before they themselves were shot and killed by Israeli security personnel.

And, Israeli leaders were not slow to blame Palestinians for trying to sway their elections, both the primary election for the leadership of the right-wing Likud Party and they say for the general election at the end of January. Well, whether that's true of not, one thing seems to be clear that that election, that general election will be fought not on a question of the deteriorating Israeli economy, not on questions of making peace with the Palestinians but of the issue of how best to combat terror and to bring more security for Israelis.

But, Prime Minister Sharon, Ariel Sharon will seem to be the man who will be leading the right-wind Likud into that election because one would have expected him to be partying at this stage but because a political day turned into a day of terror there's no partying here at what has become the Likud headquarters for the day.

But it is Ariel Sharon planning to mark his political victory even in adversity because according to the exit polls from the Likud elections it has been a major victory for Mr. Sharon over his challenger Benjamin Netanyahu and in the last half hour the actual counting of votes is bearing out that landslide victory for Mr. Sharon, more than 20 points, victory of Benjamin Netanyahu. He seems set to run the right wing into that challenge against the center left Labor Party in the January 28 elections -- Marty.

SAVIDGE: Jerrold, is there any indication from the Israeli government how it's going to respond to this external terrorism?

KESSEL: That's a very interesting question you ask because we've had so many times before, the question of Palestinian terror, Palestinian attacks, what will Israel do? How they will counter them? Israel has been all along saying that that Palestinian campaign is part of a global campaign, a global terror campaign. What I think we might be seeing the start of today because of these attacks, whoever carried them out in Kenya, is Israel getting involved in the counterterror attack worldwide?

And, it's very interesting to note Mr. Sharon has instructed Israel's Mossad (ph) spy agency to take charge of the investigation into who carried out those killings, those attacks, in Mombasa, Kenya and to determine who precisely was behind it. But beyond that, I don't know but I think that signals a start of where Mr. Sharon, even as he's heading into the selection, needs to go if he remains prime minister - Marty.

SAVIDGE: Jerrold Kessel reporting live from Tel Aviv our thanks. Well, the president is spending his Thanksgiving holiday in Crawford, Texas. CNN Senior White House Correspondent John King joins us live from there. John, the Israelis and the Kenyans both are indicating that this may have been the work of al Qaeda. What's the White House saying?

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: The White House says, Marty, that it is too soon to tell. There is obviously great concern about the episode in Kenya involving the surface-to-air missiles because al Qaeda is known to have those missiles and to have produced a training video about such missiles, and of course, the U.S. believes there continue to be al Qaeda cells in Kenya. It was al Qaeda blamed for the attack on the U.S. embassies in Kenya and Tanzania back in 1998.

So, it certainly is an area of concern. White House officials say it is too soon to tell. They want to see the investigation, the evidence from that investigation and they promise to assist the Kenyan authorities as that investigation unfolds. They say right now they're not ruling it in but they're certainly not ruling it out - Marty.

SAVIDGE: And what about the concern, John, that this just wasn't an attack on Israelis but could signal perhaps a broader type of strategy?

KING: Well, Jerrold Kessel just hit the point. One giant U.S. concern right now, even before this violence and the tragic deaths of today, was that there would be an increase in violence against Israelis designed to provoke a strong Israeli response which, in turn, could provoke strong anti-Israeli and anti-American sentiment across the Arab and Muslim world just as the Bush administration is involved in this very tough diplomatic confrontation right now and possibly a military confrontation not long down the road with the Arab state of Iraq.

One thing that would significantly complicate U.S. diplomacy in the Arab world with Saudi Arabia, with Jordan, with Bahrain, with Qatar, with other nations is if Israel was projecting force outside of its borders. The United States already gets enough interference, if you will, criticism from Arab countries when the Israelis send troops into the Palestinian territories.

If there was any evidence at all that Israel was about to or if any Israeli response came about in which the Israeli military was projecting force elsewhere in the world, that would significantly complicate U.S. diplomacy but the Bush administration says it has the right to respond to global terror. It is in no position to tell the Israeli government it can not respond if it can find those responsible - Marty.

SAVIDGE: But, John, doesn't the White House consider that may be part of the broad plan on whoever carried out these attacks to draw Israel in?

KING: That has been a White House concern from the get-go. Remember al Qaeda's mission statement includes getting the United States to pull out of the Middle East, no troops in Saudi Arabia, no tankers, aircraft carriers in the Persian Gulf, so that has certainly been an al Qaeda mission and in the recent communications, that audiotape from Osama bin Laden, other communications publicly released by al Qaeda or intercepted by the United States, there is a great deal of talk not only about the United States but its alliance with Israel in the region.

The United States says it's too soon to tell in these particular cases but there is a giant fear at the White House, especially again given the moment, the drama of the moment in Iraq that there could be an effort to draw Israel into the conflict and make those Arab nations think twice about joining any coalition with the United States right now.

SAVIDGE: Certainly, John King live with the president of the United States in Crawford, Texas thank you. They were used with deadly effectiveness against the Soviets in Afghanistan. Now are stinger missiles the new weapon of choice for al Qaeda? CNN Investigative Reporter Mike Boettcher joins us just ahead. And, if al Qaeda is firing stingers at passenger planes, how vulnerable are commercial airliners? A reality check on security still ahead.

(COMMERCIAL BREAK)

SAVIDGE: In light of today's terror attacks this question, just how safe are airports and jetliners from terrorist missile strikes? CNN's Patty Davis is at Reagan National Airport in Washington with that - Patty.

PATTY DAVIS, CNN CORRESPONDENT: Well, Marty, the possibility that terrorists could use these shoulder-fired missiles against aircraft here in the U.S. has certainly drawn the concern of U.S. officials.

(BEGIN VIDEOTAPE)

DAVIS (voice over): A narrow escape for this Israeli charter plane. Two portable missiles fired near the Mombasa, Kenya Airport missed their target. NETANYAHU (through translator): Today they fired missiles at Israeli planes. Tomorrow they'll fire missiles at U.S. planes, British planes, planes from every state.

DAVIS: Just weeks ago, U.S. security officials met with airline executives in Washington to discuss among other issues the possibility that shoulder-fired missiles like this one, shown in an al Qaeda training video, could be used against U.S. commercial airliners. Last May, after an apparent attempt by al Qaeda to shoot down a U.S. military plane in Saudi Arabia with such a weapon, the FBI and the Transportation Security Administration warned airlines and local law enforcement that it could happen in the United States but did not ask them to take any special precautions.

In fact, in its alert the TSA said: "There is no information indicating that al Qaeda is planning to use MANPADS or shoulder-fired missiles against commercial aircraft" but it added "the threat can not be discounted."

ERIC MARGOLIS, TERRORISM ANALYST: It's unlikely but it is possible if one of these missiles has been smuggled in, particularly a stinger. There are between 100 and 300 stinger missiles from Afghan war days back in the 1980s still floating around unaccounted for. They are available on the black market.

DAVIS: Airplanes are most vulnerable to shoulder-fired missiles during takeoff and landing. Unlike U.S. military aircraft, U.S. passenger planes are not equipped with chaff and flares to draw heat- seeking missiles away, nor do they have technology to confuse an incoming missile's guidance system.

(END VIDEOTAPE)

DAVIS (on camera): So security at airport perimeters, particularly important. Now airports have beefed that up since September 11th but terrorism experts say that they could do even more including being yet more vigilant about who they allow on airport grounds - Martin.

SAVIDGE: Patty, is anybody talking about putting some of the sensitive material on commercial airliners to make them safer if that's possible?

DAVIS: Well, in fact, the Israelis are talking about something like that, kind of anti-missile system. It will be a radar to detect incoming missiles and then they would be able, they would use technology to deflect that missile, scramble it somehow so it would be deflected from the aircraft and not hit it. Now, this big cost though, per airliner about $10 million to put something like that in, under consideration now for the Israelis - Martin.

SAVIDGE: That's a big expense. All right Patty Davis thanks very much. Now, here's your chance to weigh in on this story. Our web question of the day is: Should all commercial airliners be equipped with missile evasion technology even if it is expensive? We'll have the results later in the broadcast. Vote at cnn.com/wolf. While you're there, we'd like to hear from you. Send us your comments and we'll try to read some of them during this program. That's also, of course, where you can read our daily online column, cnn.com/wolf.

Well, the State Department is sending a team of investigators to Kenya to help with the probe into today's attacks. CNN's State Department Correspondent Andrea Koppel has that.

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Good evening, Marty. Strong words today from Secretary of State Colin Powell speaking out against those two terrorist attacks targeting Israelis from Israel all the way to Kenya. In a prepared statement, Secretary of State Powell said:

"We condemn in the strongest terms the horrific terrorist bombing earlier today in the Paradise Hotel near Mombasa, Kenya that killed at least 11 and wounded dozens, both Kenyans and Israelis. We also condemn in the strongest terms the terrorist shooting at a polling station in Beit Shean in which three Israelis were killed and many more injured."

The statement went on to say that: "We also call on the Palestinians to take immediate and sustained steps to eradicate the infrastructure of terrorism and violence that has wrought such tragic bloodshed."

Now, despite today's attacks, State Department officials tell me they made the decision not to update the worldwide travel warning that's already in effect. They said that it's strong enough and it should stand alone. Americans obviously need to be on alert wherever they go. The State Department did, however, make the decision to send two of its foreign nationals from its embassy in Nairobi, Kenya to go to Mombasa, they said to help out both Kenyan and Israeli investigators - Marty.

SAVIDGE: Andrea Koppel thanks very much. Moving on second full day on the job and the first discrepancy how did U.N. weapons inspectors react when they got some bad information? Israeli leaders say today's attacks were a clear escalation and they remain defiant. I'll speak live with Israel's ambassador to Washington on what the next move might be.

(COMMERCIAL BREAK)

SAVIDGE: United Nations inspectors carried out a second straight day of hunting for suspected weapons of mass destruction in Iraq. Among the sites checked, a plant that at one time produced deadly toxins. CNN's Rehm Brahimi is in Baghdad with the details.

(BEGIN VIDEOTAPE)

REHM BRAHIMI, CNN CORRESPONDENT (voice over): Crowds in a passing bus on a road near Baghdad, children wave at foreigners, the foreigners the international media as U.N. weapons inspectors try to make out what lies behind the gate. Day Two of the inspections, the Al Daura factory. BRAHIMI (on camera): Places like this factory were the reason there was so much suspicion over Iraq's weapons programs in the past. This plant was monitored by the previous U.N. weapons inspection team. Four years later, inspectors are back.

BRAHIMI (voice over): At least one inspector wore full protective gear as the team gathered samples from the compound. A four-hour long inspection, journalists kept aside, but once the inspectors left, we were allowed in, Baghdad keen to prove claims Iraq has nothing to hide.

UNIDENTIFIED MALE: They took many samples from portable tanks, from fixed tanks and also from the ventilation system.

BRAHIMI: Al Doura was an obvious site for the inspectors to visit. Once used to produce foot and mouth disease vaccines for livestock, the Iraqis admitted in 1995 that it had also been used to produce the lethal biological warfare agent Bochuden (ph). That led the previous inspectors to destroy most of the plant's equipment and place surveillance cameras there. The cameras are no longer working and some of the remaining equipment has been transferred.

DIMITRI PERRICOS, UNMOVIC TEAM LEADER: We're looking for some equipment that had been noted from the past activities that they should be in the plant and when we didn't find them we asked the director of the plant.

BRAHIMI: He told them evidence of winning cooperation from the Iraqis so far, so they left the factory for another facility to the north where they found the equipment they'd been looking for. Back at Al Doura, only five of the plant's original 120 employees still work here. As children gather around the compound, this site is clearly not as sensitive as it once was. The inspectors realize far tougher challenges lie ahead. Rehm Brahimi Cn, Baghdad.

(END VIDEOTAPE)

SAVIDGE: A day when security officials assess the war on terror, the latest from Kenya and Israel, and I'll speak live with Israel's ambassador to the United States. And terrorism and tourism, the strike on the resort in Kenya rips through the tranquility and has tourism officials worldwide bracing themselves.

(COMMERCIAL BREAK)

SAVIDGE: Welcome back to this special edition of WOLF BLITZER REPORTS DAY OF TERROR. I'm Martin Savidge filling in for Wolf. Our top story, twin terror attacks in Kenya. A deadly suicide bombing in a hotel and missile strikes at a charter jetliner, the target Israelis. CNN's Charles Molineaux, he reports.

(BEGIN VIDEOTAPE)

CHARLES MOLINEAUX, CNN CORRESPONDENT (voice over): Mombasa's seaside Hotel Paradise became a scene of hell on earth as bloodied survivors staggered to the beach or just stared, dazed, at the ruins. More than a dozen people were killed including two Israeli children and three suicide bombers.

Thursday morning, a green vehicle full of explosives approached the hotel. It was turned away but then came back and rammed through the gate. One man jumped out and blew himself up inside the hotel. The other two set off the explosives in the vehicle. The blast tore apart the wooden and bamboo building and sent shattered glass flying.

UNIDENTIFIED FEMALE: It was a big bomb and all the glasses (unintelligible) and we were lucky because we were in the corner of the room.

UNIDENTIFIED MALE: I wake up. I see all the (unintelligible). Many people they cry. Many people (unintelligible).

UNIDENTIFIED FEMALE: We took our stuff and ran to the sea (unintelligible).

MOLINEAUX: The hotel was Israel-owned and popular with Israelis in part because of its tight security made them feel safer. Police in Kenya took two people in for questioning and a previously unknown group calling itself the Army of Palestine has claimed responsibility. Some Kenyan officials are blaming a more familiar name.

JOHN SAWE, KENYAN AMBASSADOR TO ISRAEL: I have no doubt whatsoever that these must be connected with al Qaeda.

MOLINEAUX: Kenya's vice president says yes, as he puts it, "we can't rule out those who struck us in 1998." That was when the U.S. Embassy in Nairobi was blasted by a car bomb and so was the U.S. Embassy in Dar es-Salam (ph), Tanzania. The simultaneous attacks killed 224 people, including a dozen Americans and both have been blamed on al Qaeda. The vice president says ongoing turmoil next door in Somalia is a loophole in efforts to strengthen security in East Africa.

UNIDENTIFIED MALE (through translator): We're all asking ourselves things like where do they come from and why does it happen to us in a country like Kenya?

MOLINEAUX: Stunned, saddened, Kenyans see this as another bloody episode in an outsider's war and they're demanding the government do more to protect their tourists and the Kenyan people. Charles Molineaux, CNN, Atlanta.

(END VIDEOTAPE)

SAVIDGE: It was a close call for passengers aboard an Israeli jetliner targeted by a pair of missiles as it took off from Mombasa, Kenya. The flight arrived safely in Israel. Once again, CNN's Matthew Chance picks up the story from Tel Aviv.

CHANCE: A lot of anxiety but also a lot of relief among the passengers that we've been speaking to here in Tel Aviv. They disembarked from the aircraft having only just been told within the last half an hour before they landed here in Tel Aviv that the plane had come under missile attack. Many of them had been very disturbed by hearing unusual noises as the plane took off. What we now know, of course, is that that plane came under missile attack just two kilometers or so after it left the runway in Mombasa. Some of the passengers we spoke to said how relieved they were to have escaped with their lives.

UNIDENTIFIED FEMALE: We didn't know anything, just when we -- the airplane start to leave, we heard boom. We didn't know anything. The staff didn't tell us anything until about 10 or 15 minutes before we came to Israel. Then they told us what happened. And about a few minutes after that we saw the airplane, military airplane going -- checking if everything is OK with the plane. And they told us we were safe.

CHANCE: Well the pilot of the aircraft said that he saw two flashes just in the seconds after lifting off from the airport in Mombasa. He said he checked the aircraft systems but found that there was nothing wrong with the plane. And so at that point made the decision to continue his journey on to the destination of Tel Aviv. Captain Haffi Marek piloted the aircraft has it came under missile attack.

HAFFI MAREK, PILOT: We were just taking off and we were tracking the landing gear as we felt a kind of bump, not something very serious. And right off the bat we saw two white stripes passing us by on the left side coming up from the back of the airplane towards the front of it and disappearing after a few seconds. Just after takeoff after everything settled, we talked to the passengers, which also some of them saw what we saw.

CHANCE (on camera): What did you tell them?

MAREK: We just told them that, according to all of our indications, everything is normal and we continued the flight to Tel Aviv. There was no panic whatsoever. Everything was calm and normal.

CHANCE: Well, Israel, of course, in some shock and feeling some anxiety as a result of these joint attacks. Already we have heard from Israeli officials that they have ordered or advised Israeli citizens in Kenya to leave the country. Also hearing that they've shut down the Israeli embassy in Pretoria, South Africa, because of what they say are threats to the safety of its staff there. Matthew Chance, CNN, in Tel Aviv.

(END VIDEOTAPE)

SAVIDGE: This was primary day for Israel's ruling Likud party. But it was a bloody day in the northern town of Beit Shean as Palestinian gunmen attacked a bus station and a nearby polling station. Live go live once again to CNN's Jerrold Kessel in Tel Aviv -- Jerrold.

KESSEL: Marty, they were planning to party here at about this time at the Likud party, the right wing Likud party at the end of the leadership race. But there will be no partying because the day of politics turned into a day of terror. Nonetheless, it seems as if Ariel Sharon will be able to celebrate a political victory in adversity because of the terror; it was a rolling day of terror.

No sooner word coming in of the sighs of relief really that that airliner had returned safely to Tel Aviv, than the word of a Palestinian attack in the northern Israeli town of Beit Shean. Two Palestinian gunmen going on a shooting spree, throwing hand grenades, killing six people, including people who were lining up to vote in this Likud party primary for the leadership of the right wing party.

Another 25 Israelis were wounded in that attack, several of them seriously, before the Palestinian gunmen were shot and killed by security personnel. Nonetheless, Ariel Sharon, Israel's prime minister, will be celebrating this victory. He has scored, it seems, a very decisive, a landslide victory over his challenger, Benjamin Netanyahu, his current foreign minister, who has conceited defeat and offered his congratulations.

More than 20 points margin between the two men. Ariel Sharon now having (UNINTELLIGIBLE) challenger, Benjamin Netanyahu, within his own party. Set to see off the challenge he believes at the end of January, and all of the polls suggest he will. The challenge from the center left labor party in the general election.

But it also seems as if Mr. Sharon has his sights fixed elsewhere as prime minister, because he has ordered Israel's (UNINTELLIGIBLE) spy agency to take control of the investigation into those twin attacks down in Kenya and to investigation who conclusively carried out those attacks. That's the direction Ariel Sharon seems to be going in what seems to be Israel beginning a counter war on terror -- Marty.

SAVIDGE: Thank you, Jerrold. Jerrold Kessel reporting live from Tel Aviv.

Israel says it will do everything it must to combat and eradicate terrorism. Meantime, it warns that the missile attack reveals a new threat for all nations. Joining us from our Washington bureau is Daniel Ayalon, Israel's ambassador to the United States. Mr. Ambassador, thank you very much for joining us.

DANIEL AYALON, ISRAEL AMBASSADOR TO U.S.: Good evening.

SAVIDGE: Let me ask you this. How will Israel respond to this external terrorism?

AYALON: Well, first of all, we will continue to defend ourselves. I think this is the first obligation for any democratic country to do that. And we will hunt down the terrorists and bring them to justice. And more importantly, we will do it so as to prevent the next attacks which are now being planned.

What we see now is that terror has become globalized. Palestinian terror now is going everywhere, there are no limits. And we know in the past there were corporations between different terror organizations, Hamas, jihad, Palestinian Authority organizations with Hezbollah, Iranian bank groups and al Qaeda as well. We do think that to effectively combat this Palestinian terror and global terror it must be a concerted effort by all democracies to cooperate and to really mobilize all of the resources, intelligence, operational, also to try and dry up their funds that they can freely move. And really in a concerted effort it can be stopped.

SAVIDGE: Do you see a military strike as an option in response to this attack?

AYALON: Well, I don't want to speculate about any mode of operations. But I would say that if any lesson can be taken, it's that terror will never be appeased. They attack us not because of what we do, but because of who we are.

We are trying to compromise, we are debating how to promote peace. We are extending our hand in peace, but to no avail. They attack us very fiercely, and the only way to stop it is to eradicate it. And to do that, you really need the cooperations of all countries.

One of the problems we have today, there are still safe havens for terror. There are terrorist centers in rogue regimes like in Iran, like in Lebanon, like in Syria, like in the Palestinian Authority. The terror emanates from there, terror centers are there, or the leadership there not only (UNINTELLIGIBLE), but they encourage it inside (ph). So this is...

SAVIDGE: Quickly, let me ask you this, Ambassador, before we run out of time. Your government, as well as the Kenyan government, has suspected that this was al Qaeda at work. Why do you suspect that? What do you see?

ALAYON: Well, there could be al Qaeda involvement, but no doubt there are Palestinian terror organizations. Palestinian terror has been striking in the past globally, whether in Europe, whether here. And certainly throughout the Middle East.

The problem now is the cooperation of Palestinian terror organizations with al Qaeda and other terror organizations, Hezbollah and the rest. It has to be thoroughly investigated and, certainly, we are prepared to do that.

SAVIDGE: Ambassador, I thank very much for joining us. That is Israel's ambassador to the United States, Daniel Ayalon.

Well we have just received word that President Bush has issued a statement about the terror attacks today. We're going to go live now to Crawford, Texas, and CNN's Senior White House Correspondent John King with that -- John.

KING: Marty, the president's tough statement coming on top of statements issued earlier today by the Secretary of State, Colin Powell, and the White House spokesman just issued from the Bush ranch here in Crawford, Texas. Let me read to you in its entirety the president' statement. Mr. Bush saying, "I condemn in the strongest possible terms the terrorist attacks today at the Likud party polling place in northern Israel and the Paradise Hotel in Mombasa, Kenya, as well as the attempted attack on a civilian airliner shortly after it took off from Mombasa's international airport. I want to extend my condolences to the victims and their families, and to the governments and peoples of Israel and Kenya.

Today's attacks underscore the continuing willingness of those opposed to peace to commit horrible crimes. Those who seek peace must do everything in their power to dismantle the infrastructure of terror that makes such actions possible. The United States remains firmly committed, with its partners around the world, to fight against terror and those who commit these heinous acts."

That a statement issued by the president, Marty, just moments ago. He is, of course, here in Crawford for the Thanksgiving holiday, but being kept up to speed on the developments. U.S. officials on the point you were just making say too soon to say whether there is any al Qaeda involvement, but they are offering resources to both the Israeli and the Kenyan governments in the investigations -- Marty.

SAVIDGE: John King live in Texas. We'll stay in touch, thank you.

The long reach of terror. How one nation's tourism industry has suffered without even having a major attack.

And could you wear someone else's face? The mind-boggling innovations behind face transplants.

(COMMERCIAL BREAK)

SAVIDGE: If al Qaeda carried out today's missile attack on an Israeli jetliner in Kenya, it would mark a major addition to the terrorist group's arsenal. CNN has reported extensively on the attempts by al Qaeda to acquire heat-seeking missiles like the stinger. Joining us for more on this is CNN National Correspondent Mike Boettcher. And it is a disturbing development, Mike.

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT: Oh, absolutely. And some people are pointing towards al Qaeda as the main suspect, some to Palestinian groups, or a combination of both of them. But one thing we know for sure, al Qaeda does have surface-to-air missiles in their inventory.

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): Two missile launchers were found 300 meters from the end of the runway in Mombasa. The launchers appear to be variance of the Russian-designed SAM-7 (ph). Al Qaeda's interest in surface-to-air missiles is clear from their own videotape archives obtained exclusively by CNN last August. One videotape included this, a lengthy and detailed video presentation of how to fire a SAM-7 (ph).

In another al Qaeda tape, produced before the group was forced to flee Afghanistan, classroom instruction is applied in the field. Hooded al Qaeda operatives at a location believed to be in Afghanistan take what appears to be a Chinese variant of the Russian SAM-7 (ph) known as a red cherry, assemble it, then actually fire it.

Al Qaeda had also committed their knowledge to paper. These manuals discovered in an al Qaeda safe house, after the fall of Kabul to coalition forces, contain instruction in how to use several times of surface-to-air missiles, including American-made stingers. Still, surface-to-air missile systems are not foolproof.

If infrared guided missiles like the SAM-7 (ph) do not lock on to an aircraft's jet exhaust, the heat-seeking missiles will miss their target. That was apparently the case in the failed Mombasa attack. And in another failed attack last May in Saudi Arabia, in which investigators believe a Sudanese man with al Qaeda links fired at a U.S. plane as it took off from the Prince Sultan Air Base.

Kenyan officials blame al Qaeda for the Mombasa suicide bombing and missile attack. But in Beirut, Lebanon, a previously unknown group called the Army of Palestine claimed responsibility, saying it was meant to coincide with the November 29, 1947 United Nations decision that partitioned Palestine and allowed for the creation of Israel.

BOETTCHER (on camera): CNN has learned that anti-terror coalition intelligence sources are investigating whether this most recent attack is the work of several groups acting together. Attention is being focused on al Qaeda and Lebanese Hezbollah, which previously has been accused of launching attacks against Israeli targets outside the Middle East.

(voice-over): And according to those same sources, this man, Saif al-Adel (ph), whose name appears on the FBI's most wanted terrorist list, is getting close scrutiny. An al Qaeda operative with close ties to Lebanese Hezbollah, al-Adel (ph) is already wanted in connection with the 1998 attacks on U.S. embassies in Kenya and Tanzania. Coalition intelligence sources point out that if anyone had the experience and means to plan a combined attack in Africa, it is Saif al-Adel (ph).

(END VIDEOTAPE)

BOETTCHER: And Saif al-Adel (ph) has other history in Africa. He trained with and fought with Somalis who attacked U.S. soldiers in Mogadishu that was depicted in the book and movie "Blackhawk Down," as well he's suspected of being a coordinator in the attacks on the USS Cole, that suicide boat attack that occurred in Yemen -- Marty.

SAVIDGE: Mike, let me ask you this. How unusual would it be, as you mentioned the combination prospect at the top there, how unusual could it be that al Qaeda would mix with another organization?

BOETTCHER: Well it was thought before that this was virtually impossible and it wouldn't happen. But before the 9/11 attacks, we were investigating this and found there had been contacts dating back to 1994, when a top leader of Hezbollah and also Osama bin Laden met in Khartoum in Sudan. And contacts have carried along the way, according to our coalition intelligence sources. But based on specific needs for specific attacks, sort of a tactical alliance.

SAVIDGE: All right. That would be a disturbing development. Mike Boettcher, thank you very much.

Repercussions from last month's terror attack on the island of Bali are being felt across Asia, especially in the tourism industry. And perhaps nowhere more than in Thailand's top island resort. CNN's Tom Mintier reports on that.

(BEGIN VIDEOTAPE)

TOM MINTIER, CNN BANGKOK BUREAU CHIEF (voice-over): This is Patong (ph) beach in Puket (ph), Thailand, where bartenders juggle flaming cocktails, bar girls gyrate, and tourists congregate. Music pounds the eardrums; blazing neon turns the night into day.

It is the place where many governments are warning or advising tourists not come. Fears of another terrorist attack like in Bali. The warnings and advisories have angered the Thai Prime Minister Thaksin Shinawatra.

THAKSIN SHINAWATRA, THAI PRIME MINISTER: ... and also, I would like to ask the country, like U.S., if U.S. are so nervous too much about it, then you serve the purpose of the terrorism.

MINTIER: But the United States ambassador to Thailand says his government warned its citizens to be cautious but did not say don't come to Thailand.

DARRYL JOHNSON, U.S. AMBASSADOR TO THAILAND: I think after the Bali bombing in the middle of October one has to assume that no place is completely safe, including the U.S. And I think we have to assume on the basis of this warning that was issued last week that the terrorists are sufficiently organized and sufficiently determined to try to carry out terrorist acts.

MINTIER: The ambassador says his government must provide information it has to the public. That information has had a dramatic impact on tourism in Puket (ph). This restaurant normally has 1,000 customers a night. Now the number is about 600. Empty tables are clear evidence of the impact.

UNIDENTIFIED MALE: I think it's only rumors.

MINTIER (on camera): But it hurts you?

UNIDENTIFIED MALE: It hurts everybody.

MINTIER (voice-over): Not just here on Patong (ph) beach, where during the day there are plenty of empty beach chairs, but here at five-star hotels like the newly opened J.W. Marriott resort and spa. Europeans and Japanese make up about half of the hotel's customers. Many are staying away. UNIDENTIFIED MALE: This month, for the month of November, we've had some cancellations. It could have affected our business as much as eight to 10 percent

MINTIER: Puket's (ph) governor says the warnings have affected others even harder. To demonstrate how safe Patong (ph) beach is, he took us on a tour.

UNIDENTIFIED MALE: Everything OK here?

UNIDENTIFIED FEMALE: Everything OK.

UNIDENTIFIED MALE: Not worried?

UNIDENTIFIED FEMALE: Not worried.

MINTIER: The government has also taken steps to ensure security. Police roadblocks search for weapons and drug; police officers are just about everywhere. Even where they are not, they are watching.

Closed circuit TV cameras scan the streets for trouble. More are being installed. Private security firms are doing a good business. Everyone entering a bar is frisked for weapons.

UNIDENTIFIED MALE: We look after the place (UNINTELLIGIBLE) the nightlife there.

MINTIER: The governor did admit there were threats against two locations. This club, called Tiger, and here, at the Banana Disco.

(on camera): It's just after midnight here on Patong (ph) beach. These mini buses are parked in front of a disco with permission. They have already been checked by police.

(voice-over): While customers dance inside, police patrol outside. Unlike Bali, where a parked vehicle in front of a club caused massive casualties, here mini cabs are constantly being watched. Tourism officials in Puket (ph) say while the warnings and advisories have hurt business, they feel with increased security and no indents things will soon return to normal.

UNIDENTIFIED MALE: Now we are running about 60 percent, I think. And we expect to have about 70. And next year we plan to have 75. With this -- if all goes well, I think it will be OK.

MINTIER: Many holiday travelers did not really cancel their vacations, but simply delayed them for a few months. Everyone here is hoping that the yellow caution light will return to green in the next few months and Puket (ph) will once again be normal. Tom Mintier, CNN, Thailand.

(END VIDEOTAPE)

SAVIDGE: It's the stuff of science fiction. Or is it? Transplanting someone else's face on to your own. It is closer to reality than you might think. That story just ahead. (COMMERCIAL BREAK)

SAVIDGE: A British doctor says he's on the verge of performing what sounds like a bizarre kind of surgery, a face transplant. But as CNN's Robin Curnow reports, there is a real need for the procedure.

(BEGIN VIDEOTAPE)

ROBIN CURNOW, CNN CORRESPONDENT (voice-over): When the movie "Face Off" came out it seemed like an unbelievable Hollywood story line. Transplanting one face on to another. But science fiction could soon become medical fact. Dr. Peter Butler, a British plastic surgeon, did a full-face transplant that will be medically possible within a year.

DR. PETER BUTLER, PLASTIC SURGEON: So we make an incision in the front of the ear here, which is an incision we make in a face-lift, which actually heals cosmetically very well. And encroaching on to the hairline to include the forehead with or without hair if required. Then moving forward in subcutaneous (UNINTELLIGIBLE) to include the forehead, eyebrow, upper and lower eyelids, cheek, chin and lips. With the nose or ears, if required.

CURNOW: Full or partial face transplants would help people like Christine Piff. She had cancer and now runs a charity called Let's Face It, counseling burn, cancer and accident victims, many of whom she says would be willing to have somebody else's skin, bone and muscle transplanted on to their face.

CHRISTINE PIFF: If they could have the kind of surgery that would give them their lives back or restore the quality of life, surely that is a good thing.

CURNOW: But will people will willing to donate their faces when they die, even if the transplanted face is likely to look different on a new owner?

UNIDENTIFIED MALE: It's a difficult scenario to give an answer to but I can see a case for it.

UNIDENTIFIED MALE: Its a moral argument, and the fact they will -- you'll see that person's face again, I don't think that's really something that should be done. Someone's dead, they're dead.

CURNOW: Dr. Butler's pioneering proposals are being debated before the British Association of Plastic Surgeons this week. All aware that public debate is crucial if the technique is to become a reality.

BUTLER: The technical side of the transplant is not the big issue. I think it's the moral and ethical problems that we will face, and that's where I think there needs to be a full and frank and public debate about it.

CURNOW: A debate many with facial injuries and deformities never thought was possible. Robin Curnow, CNN, London. (END VIDEOTAPE)

SAVIDGE: You still have time to weigh in on our question of the day. Should all commercial airliner planes be equipped with missile evasion technology even if it's expensive? You can log on to cnn.com/wolf to vote. The result when we come back.

(COMMERCIAL BREAK)

SAVIDGE: All right. Here is our how you have been weighing in on our Web question of the day. Remember earlier we asked you this: Should all commercial airlines be equipped with missile evasion technology even if it's expensive? Sixty-one percent of you said yes, while 39 percent of you said no. We will update these results at the end of our next hour. This is not, we point out, of course, a scientific poll.

I'm Martin Savidge at the CNN Center in Atlanta. For our international viewers, a special edition of "INSIGHT" is next. For our domestic viewers, stay tuned for more of thie special edition of WOLF BLITZER REPORTS right after this "News Alert."

(NEWS ALERT)

SAVIDGE: A day of terror, twin attacks against Israeli targets in Kenya. Suicide bombers strike a hotel.

UNIDENTIFIED FEMALE: We are horrified and saddened that yet again we are experiencing attacks on terrorists.

SAVIDGE: And an airliner is targeted by missiles.

UNIDENTIFIED MALE: We saw two white stripes passing us by on the left side.

SAVIDGE: If terrorists have missiles, who's next?

UNIDENTIFIED MALE: Today it's an (UNINTELLIGIBLE) plane, tomorrow it's a British Airways plane or a Lufthansa plane or Air France plane.

SAVIDGE: And in Israel, a bus station and election polling station are attacked by gunmen.

UNIDENTIFIED MALE (through interpreter): We must use everything at our disposal to combat terrorism.

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS, Day of Terror.

Substituting for Wolf Blitzer, here's Martin Savidge.

SAVIDGE: Welcome back.

It is Thanksgiving Thursday, November 28, 2002. It is good to be with you. But the news is not necessarily good. It was a day of terror for Israelis at home and abroad. An Israeli-owned resort hotel was blown up by suicide bombers in Kenya as missiles were fired at an Israeli jetliner nearby. Within Israel, a bloody election day shooting attack.

We begin with James Mace.

(BEGIN VIDEOTAPE)

JAMES MACE, ITV CORRESPONDENT (voice-over): It is called the Paradise Hotel, and for the tourists who came here, it was a little corner of paradise on the East African coast, until men driven with suicidal fanaticism decided they were a soft target.

Israeli owned, known to be filled with Israeli tourists, the security gates were no obstacle as a four-wheel drive vehicle laden with explosives crashed through into the main foyer and exploded.

Many of the victims had just arrived and were heading for their rooms.

UNIDENTIFIED FEMALE: We got the keys for the room, and people started to leave for their room. And when the last people stayed in the lobby to get their keys, there was a very big bomb near the lobby, and the whole roof started to go on fire. And I think the most people to get hurt were some of the people from us, and some of the people that were (UNINTELLIGIBLE) us (UNINTELLIGIBLE).

UNIDENTIFIED MALE: I wake up, I see all the hotel fire, many people cry, many people with problem.

MACE: Fifteen dead, more than 80 injured, many critically. In a crowded hotel, it could have been much worse.

The Israelis had been planning to spend the upcoming Hanukkah holiday here, but most will now head straight home.

UNIDENTIFIED FEMALE: You have to go to Israel to (UNINTELLIGIBLE).

UNIDENTIFIED FEMALE: We miss our family.

UNIDENTIFIED FEMALE: We miss our family.

MACE: But for all the carnage here, the bombing of the hotel was supposed to have been the sideshow.

This is the evidence of what had been planned as the biggest terrorist attack ever against Israelis, a used antiaircraft missile launcher lying less than a mile from Mombasa Airport.

And this was its target, a Boeing 757 packed with 261 passengers and 10 crew. Eyewitness talk of the missiles passing just meters from the aircraft's wing.

Most passengers were not aware of how close they'd come to disaster until told by the captain an hour before landing. Then, as this amateur video shows, they looked out of the window to see two F- 15 fighters from the Israeli air force escorting them home and checking the airliner for damage before it landed.

As they touched down at Tel Aviv's Ben Gurion Airport, all 260 burst into spontaneous applause. "Shalom, shalom," they sang, people spared death only by the inaccuracy of the weapons fired at them. Truly some of the luckiest.

James Mace, ITV News.

(END VIDEOTAPE)

SAVIDGE: In Israel, where a bitter primary campaign focused on the issue of security, there was no security to be had in the northern town of Beth Shein (ph). Palestinian gunmen staged an election day attack on a bus station and a Likud Party polling station.

Let's go live to CNN's Jerrold Kessel in Tel Aviv -- Jerrold.

KESSEL: Marty, anticipation building here of the expected arrival within the next several minutes of Prime Minister Ariel Sharon and his foreign minister, Benjamin Netanyahu, a man who's been reelected to head the Likud Party, and the man who he defeated in what was a pretty bitter campaign for the leadership of the right-wing party.

But it was a backdrop that was a very somber backdrop and which has overshadowed this election campaign, a rolling day of terror, because no sooner had those twin attacks unfolded in Kenya, and there was a sigh of relief that the airliner had come back safely, then there was an outbreak of shooting in the northern Israeli town of Beth Shein and there was more bloodshed, plenty of it, there.

Six Israelis killed, more than 25 wounded, several very seriously, by two Palestinian gunmen who also lobbed hand grenades, including into the people voting in the Likud primaries, before they were shot and killed by Israeli security.

Israeli leaders are charging the Palestinians are trying to sway their election campaign, this primary election and the upcoming general election at the end of January.

And the man who will head the right-wing camp into that election will be none other than the current prime minister, Ariel Sharon. He trounced Benjamin Netanyahu in these primaries. It appears that the rolling day of terror did not faze Sharon's supporters, and seems over 20 percent margin dividing the two men in Sharon's favor.

Ariel Sharon then now having seen off the Netanyahu challenge will face up on January 28 to the challenge of the center-left Labor Party. And all polls predict that this, what we've seen today, will be a precise rehearsal for what happens on January 28.

Ariel Sharon is headed to become Israel's prime minister again if the polls prove accurately, whether or not there is a continuation of Palestinian terror against Israelis, Marty.

SAVIDGE: Jerrold, what are we to make of this lopsided victory for Ariel Sharon? Is it Likud voters simply felt this was not the time for change?

KESSEL: I think it's more than that. I think, first of all, there was a campaign in which Mr. Netanyahu made just about every mistake in the book. But beyond that, Ariel Sharon has managed to fashion for himself, in contrast to all his record, all his image in the past, and despite two years when one what might say not only his opponents but many of his supporters that he hasn't been the most successful in bringing Israelis what he promised to bring them when he first came to power nearly two years ago -- peace, security, and unity.

He hasn't achieved that. And yet he's squarely in the middle of the political map, and he's answering the Palestinian challenge as the best man qualified to do so. So think the majority in the Likud, and according to the polls, so think the majority of Israelis.

SAVIDGE: Jerrold Kessel live in Tel Aviv. There is victory, but obviously no celebration, not tonight. Thank you very much.

Well, authorities don't know who carried out the terror attacks in Kenya, but various clues do point to al Qaeda.

CNN senior international correspondent Sheila MacVicar in London with that.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN SENIOR INTERNATIONAL CORRESPONDENT: Israeli intelligence sources have confirmed to CNN that Kenyan authorities have recovered two missile launch tubes from the field next to the airport. Missile launch tubes from -- apparently coming from the two missiles that were fired at that Israeli airliner.

We understand that they are SAM-7s, a missile type known -- also known as Strellas (ph), and not the more sophisticated Stinger or SAM- 18 missiles, both of which are heat seeking and would almost certainly have hit the aircraft, bringing it down.

Now, it's not possible to say as a result of this discovery precisely who is responsible for the attack today, because both al Qaeda and other groups are known to possess SAM-7s. Al Qaeda, however, has in the past attempted to use SAM-7s against coalition aircraft, in that case, in May 2002 against a U.S. plane that was taking off from a Saudi air base.

At that time, the FBI issued a warning to commercial airlines in the United States, saying that it was possible that al Qaeda might attempt to carry out an attack against commercial airlines in the future, using a SAM-7-type missile, that warning in May of this year, adding that the FBI at that time had no specific knowledge of such an attack. Now, in addition to that, it is known that other terror groups, including Hezbollah, have been in possession of SAM-7s for at least two years, the Lebanese media reporting Hezbollah communiques confirming the arrival of the missiles.

The Israeli air force having to make modifications to their planes in order to protect them against the possible launch of those missiles as they fly over south Lebanon.

Now, it's not possible to know, because of the missile type, what group has been involved. There are some other clues which do point us in the direction of al Qaeda. On the Internet this afternoon, and being reported by various Arab media sources, picked up by Israeli army radio, there are claims that two of the three suicide bombers who died in today's attacks have been identified, both of them names well associated with al Qaeda, and perhaps a clue, if true, that this was authored by al Qaeda.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

SAVIDGE: President Bush was briefed on the attacks at his ranch near Crawford, Texas, where he is spending the holiday, and he has issued a statement.

CNN senior White House correspondent John King traveling with the president in Texas now. What's the president saying -- John.

KING: Marty, the president not long ago issuing a statement saying he condemns these attacks in both Kenya and Israel in the strongest possible terms. The president offering his condolences to the victims and his support to the governments of Israel and Kenya.

U.S. officials saying the United States also stands ready to assist in those investigations. The president in his statement also said, and let me quote from it, "Today's attacks underscore the continuing willingness of those opposed to peace to commit horrible crimes. Those who seek peace must do everything in their power to dismantle the infrastructure of terror that makes such actions possible."

Mr. Bush goes on and concludes his statement by saying, "The United States maintains its commitment to the global war against terrorism."

On the question, Marty, Sheila MacVicar was just discussing, could al Qaeda be involved here, White House officials taking a cautious wait-and-see attitude. Obviously the use of those surface- to-air missiles in Kenya, a country in which al Qaeda has operated before, raises concern and suspicions.

White House officials, though, say they will wait and see what the evidence from the investigation unfolds. They are also voicing some concerns about a possible effort to stoke up anti-Israeli, anti- American sentiment in the Arab and Muslim worlds at a critical juncture, of course, in the confrontation with Iraq, Marty.

SAVIDGE: And that brings up the issue of an Israeli response, especially if it's a military one. How does that complicate beyond what you just said?

KING: Well, there is a great concern in the United States government. President Bush has directly appealed repeatedly to Prime Minister Sharon, as have other top officials, to show restraint when there is violence against Israel, not telling Israel not to respond. The United States recognizes Israel's right to respond to any terrorist strikes, but there would be a great concern if Israel projected force outside of the Palestinian territories.

In fact, you have heard Israeli spokesmen, you had the ambassador to the United States on earlier, saying Israel will respond if it finds the culprits. That could dramatically complicate any U.S. diplomacy in the Middle East at a time the United States wants support from Saudi Arabia, from Bahrein, from Jordan, from Egypt, from other Arab nations. If there is a prolonged military confrontation involving Israeli force, that would significantly complicate U.S. diplomacy. They know that full well at the White House, Marty.

SAVIDGE: It would be a problem. John King live from Crawford, Texas, thank you.

Terrorism and your security. Today's attack begs the questions, how vulnerable are you on planes? And how vulnerable are you when you're overseas?

And Israeli leaders fire the first salvo back at the terrorists. But what actions will Israel take?

(COMMERCIAL BREAK)

SAVIDGE: The terror attacks in Kenya serve up a very chilling question. Just how safe are American airports and jetliners from terrorist missile strikes?

CNN's Patty Davis is at Reagan National Airport in Washington with that -- Patty.

DAVIS: Well, Marty, U.S. aviation officials don't believe al Qaeda is planning to use these shoulder-fired missiles against U.S. commercial airplane, but they are not counting out that possibility.

(BEGIN VIDEOTAPE)

DAVIS (voice-over): A narrow escape for this Israeli charter plane, two portable missiles fired near the Mombasa Kenya Airport missed their target.

UNIDENTIFIED MALE: Today they fire missiles at Israeli planes, tomorrow they'll fire missiles at U.S. planes, British planes, planes from every state.

DAVIS: Just weeks ago, U.S. security officials met with airline executives in Washington to discuss, among other issues, the possibility that shoulder-fired missiles like this one, shown in an al Qaeda training video, could be used against U.S. commercial airliners.

Last May, after an apparent attempt by al Qaeda to shoot down a U.S. military plane in Saudi Arabia with such a weapon, the FBI and the Transportation Security Administration warned airlines and local law enforcement that it could happen in the United States but did not ask them to take any special precautions.

In fact, in its alert, the TSA said, "There is no information indicating that al Qaeda is planning to use MANPADs or shoulder-fired missiles against commercial aircraft," but it added, "The threat cannot be discounted."

UNIDENTIFIED MALE: It's unlikely, but it is possible, if one of these missiles has been smuggled in, particularly a Stinger. There are between 100 and 300 Stinger missiles from Afghan war days back in the 1980s still floating around unaccounted for. They are available on the black market.

DAVIS: Airplanes are most vulnerable to shoulder-fired missiles during takeoff and landing. Unlike U.S. military aircraft, U.S. passenger planes are not equipped with chaff and flares to draw heat- seeking missiles away, nor do they have technology to confuse an incoming missile's guidance system.

(END VIDEOTAPE)

DAVIS: So security at airport perimeters all the more important. Now, U.S. airports have beefed up airport security at their perimeters since 9/11, but terrorism experts say they need to do more, they need to do more patrols. They also need to be more vigilant about who they're allowing access to airport grounds, Marty.

SAVIDGE: Patty, do you have a rough idea of what the cost would be to try to equip airliners with any sort of technology to prevent this?

DAVIS: Well, it's interesting, in Israel, that country is thinking about using kind of an antimissile system for its commercial airplanes. The cost there, $10 million an airplane. And what that would do is basically detect a missile that's incoming and then deflect it, send out some kind of signal, a technology of some sort that would send it off of its target.

So pretty expensive system, Marty.

SAVIDGE: Absolutely, but it could well be worth it. All right, Patty Davis, thank you very much.

If you were with us last hour, here is one more chance to weigh in on this story. Once again, our Web question of the day, Should all commercial airline planes be equipped with missile -- that is, missile evasion technology, even if it is expensive?

We'll have the results later in the broadcast. You can vote at cnn.com/wolf, and while you're there, we of course would love to hear from you. Send us your comments. We'll try to read some of them at the end of this program. That's also, of course, where you can read our daily online column, cnn.com/wolf.

The State Department says its current worldwide travel warning is strong enough, and it won't be updated because of today's attacks.

But it is offering to help with the investigation, as CNN's State Department correspondent Andrea Koppel reports.

KOPPEL: Good evening, Marty.

Strong words today from Secretary of State Colin Powell, speaking out against those two terrorist attacks targeting Israelis from Israel all the way to Kenya. In a prepared statement, Secretary of State Powell said, "We condemn in the strongest terms the horrific terrorist bombing earlier today in the Paradise Hotel near Mombasa, Kenya, that killed at least 11 and wounded dozens, both Kenyans and Israelis. We also condemn in the strongest terms the terrorist shooting at a polling station in Beth Shein, in which three Israelis were killed and many more injured."

The statement went on to say that, "We also call on the Palestinians to take immediate and sustained steps to eradicate the infrastructure of terrorism and violence that has wrought such tragic bloodshed."

Now, despite today's attacks, State Department officials tell me, they made the decision not to update the worldwide travel warning that's already in effect. They said that it's strong enough, and it should stand alone. Americans obviously need to be on alert wherever they go.

The State Department did, however, make the decision to send two of its foreign nationals from its embassy in Nairobi, Kenya, to go to Mombasa, they said, to help out both Kenyan and Israeli investigators, Marty.

SAVIDGE: Andrea Koppel at the State Department, thank you.

What today's attacks may mean in the wider war on terror. CNN security analyst Kelly McCann weighs in just ahead.

And far from today's attacks, two other countries suspect they're targets overseas (ph).

(COMMERCIAL BREAK)

SAVIDGE: For more on today's terror attacks in Kenya, we're joined on the telephone now by CNN security analyst Kelly McCann.

Kelly, thanks for being with us. I got a lot of questions for you.

First of all, what can be done, if anything, on the part of civilian aviation to be protected from these kind of attacks? KELLY MCCANN, CNN SECURITY ANALYST (on phone): Well, of course, Marty, anything that we do is going to mean that we've got to expend some money towards that end, and right now, the aviation industry, as you know, is really hurting.

But some things that can be done is, we can expand the buffer area around the perimeter of those civilian aviation centers, and keep a schedule that is difficult to predict, sometimes using dogs, sometimes, it's just a presence, it sends the message that if you're out there, there is a significant chance that you'll be seen.

In order to set up, they'd have to actually go out there and plan to make sure that they could make the shot, et cetera. So things like that that are a little bit more manpower-intensive and would require more astute understanding of what's going to make these people not want to target us as in this manner.

SAVIDGE: And what about the kind of technology you might find on a fighter aircraft? Is that feasible?

MCCANN: Well, I heard an interesting statistic last week, as a matter of fact, on Lou Dobbs's show. And Lou had said that the -- Wall Street had basically estimated that the airline industry was worth right now $15 billion, but they were operating at a $75 billion deficit right now, which would lead me to believe that nobody is going to want to take out of their bottom line that kind of money, $10 million per aircraft, as Patty had said, in order to correct a problem that hasn't really had a precedence here in the United States yet.

So I think that's unlikely.

SAVIDGE: All right. Well, let's talk about the missiles themselves, the ones we believe that were used, the Strellas or the SAM-7s, I believe they're called. What kind of missile are they?

MCCANN: Basically, it's a Russian-made weapon that's very similar in characteristic to the Stinger series. The thing that makes us think that that would be the weapon, of course, would be that Stingers here in the U.S. are very tightly controlled, and we have a whole different system of the way that we maintain our weapons.

However, we know that 3 to 7 percent only of all the containers coming into the United States are actually X-rayed, checked, and their contents, you know, verified. So it's reasonable to believe that if a weapon of that type was going to be used, it would not be a Stinger, but it would be one of the more common forms of battlefield weapons you find overseas, which is the SAM series.

SAVIDGE: And how easy is it to, say, get one and use it?

MCCANN: They're extremely easy to operate, Marty, because remember, the average person on the battlefield needs to be able to be trained on the use of it without onerous training. So it's not that difficult a weapon to use once you understand its characteristics, have a clear line of sight. It's basically a fire-and-forget weapon, which also means once the shooter presses the trigger, he's able to leave the point that he fired from and be mobile, so he'd be difficult to catch.

SAVIDGE: But it's not infallible. I mean, they fired two of them at this aircraft at relatively low altitude and missed.

MCCANN: For whatever reason, and that could be an anomaly in the system. There are mutations of those weapons systems out there. Some of them are outdated. They do have a shelf life. Some of them have been altered, either by the original owners or by people who believed they were making them more -- or better weapons systems.

So it's hard to tell why they didn't connect with the airline. But it was a good Thanksgiving Day gift.

SAVIDGE: It was indeed, the fact that those two missiles did miss. Kelly McCann, thank you very much for talking to us on the telephone regarding security.

Meanwhile, fear of terrorism has prompted embassy closures in the Philippines.

CNN's Maria Ressa reports the threat's being called specific and credible.

(BEGIN VIDEOTAPE)

MARIA RESSA, CNN CORRESPONDENT (voice-over): Last week, the Philippine police say they saw five men taking pictures on what seemed to be a surveillance mission outside this building. When they tried to stop them, they ran away. On Wednesday, Australia closed its embassy in Manila, followed shortly on Thursday by the European Union, which has its office in the same building.

A few blocks away, the Canadian embassy also decided to close, an official there says, because of credible threats of attacks.

Australia's foreign minister said, quote, "It's a very specific threat. It is not only location specific, targeting the Australian embassy itself, but it's also time specific, in the sense we're talking in the next few days."

The U.S. embassy was closed Thursday because of the Thanksgiving holiday, but plans to open Friday.

Filipino authorities have been on high alert since explosions in Bali six weeks ago killed nearly 200 people. That, as well as explosions in the Philippines, have been blamed on Jamah Islamia (ph), al Qaeda's arm in Southeast Asia.

Its leader, Riduan Isamuddin, a.k.a. Hambali, intelligence officials say, sits on al Qaeda's leadership committee and was behind a similar series of explosions in the Philippines and Indonesia two years ago. Two of his key Indonesian operatives are in Philippine custody, one whose group has been directly linked to the Bali explosions.

August Duacarna (ph), authorities here say, was the head of La Scargandella (ph), which set up an al Qaeda training camp in Indonesia. After he was arrested, Duacarna was replaced by a man named Shawai (ph), who intelligence officials say was a key planner of the Bali blasts.

(on camera): There's no doubt al Qaeda's network remains deeply entrenched in the region, but in the past two weeks, several arrests in Malaysia and Indonesia have taken out lower-level operatives. The only way to effectively deal with this threat, officials here say, is to dismantle the network cell by cell, member by member.

Maria Ressa, CNN, Manila.

(END VIDEOTAPE)

SAVIDGE: On the scene of today's attack in Kenya, a first responder tells us what he saw in the carnage, and how he helped the victims.

And a suspicious find in Iraq. We'll tell you what U.N. weapons inspectors came across and why they pressed the Iraqis for answers.

(COMMERCIAL BREAK)

SAVIDGE: Welcome back to this special edition of WOLF BLITZER REPORTS, Day of Terror. I'm Martin Savidge, filling in for Wolf.

Our top story, twin terror attacks in Kenya, missiles fired at a chartered jetliner. Minutes later, a deadly suicide bombing in a hotel, the target, Israelis.

CNN's Charles Molineaux reports.

(BEGIN VIDEOTAPE)

MOLINEAUX: Mombasa's seaside Hotel Paradise became a scene of hell on earth as bloodied survivors staggered to the beach or just stared, dazed, at the ruins.

More than a dozen people were killed, including two Israeli children and three suicide bombers.

Thursday morning, a green vehicle full of explosives approached the hotel. It was turned away, but then came back and rammed through the gate. One man jumped out and blew himself up inside the hotel. The other two set off the explosives in the vehicle.

The blast tore apart the wooden and bamboo building and sent shattered glass flying.

UNIDENTIFIED FEMALE: There was a big boom, and all the glasses went -- even the glasses of the room was spread all over, and we were lucky, because we were in the corner of the room, because...

UNIDENTIFIED MALE: I wake up. I see all the open fire. Many people cry. Many people (UNINTELLIGIBLE) problem. UNIDENTIFIED FEMALE: We took our stuff and run to the sea. (UNINTELLIGIBLE) he told us not to (UNINTELLIGIBLE) if anyone could stop you, but to just (UNINTELLIGIBLE). (UNINTELLIGIBLE)

MOLINEAUX: The hotel was Israeli-owned and popular with Israelis...

(INTERRUPTED BY CNN COVERAGE OF BREAKING NEWS)

SAVIDGE: Now back to that terror attack in Kenya. Farid Abdulkadir is of the Kenyan Red Cross and he was in charge of the relief effort at the Paradise Hotel. He joins us by telephone from Mombasa.

Thank you sir for being with us. If you would, describe the scene.

FARID ABDULKADIR, KENYAN RED CROSS (by phone): Thank you Martin. Yes, when we arrived at the scene, one of the things that we saw a building that was burning and bodies that were burning. Our people were able to take some of the injured people to hospital and at the same time transported bodies to the mortuary. We were able to transport a total of eight bodies, which were believed to be from the local community, and five bodies, which are presumed to be those of Israelis.

SAVIDGE: Was it obvious to you that this was a terrorist attack from the moment you got there?

ABDULKADIR: When we were there, the question, the most important things to us as an organization was to help the people, both the living and the dead, and that is what we concentrated on.

SAVIDGE: Of course, and how about those that have been wounded? How are they being cared for now and do you have enough to take care of them?

ABDULKADIR: Yes, I would say so. Most of the people want to get to private hospitals (UNINTELLIGIBLE) hospital and the (UNINTELLIGIBLE) hospital. These are hospitals that are well equipped and have all the modern facilities to provide health services. And frankly speaking, the number of people were injured were minimum compared to what we saw in 1998 during the conflict in Nairobi at the U.S. embassy.

SAVIDGE: Do you think and having heard that this hotel lobby was crowded with people that it could have been much worse?

ABDULKADIR: Yes it could have been much worse, but the good thing is the hotel is located at a very remote area in Mombasa. So I would say the location, the nature of the (UNINTELLIGIBLE) was a hotel, which was of course restricted entry. I would say that is what really minimized the number of fatalities that were encountered.

SAVIDGE: Thank you sir very much for joining us. That was Farid Abdulkadir. He is with the Kenyan Red Cross and one of the first responders after that attack.

Moving on now, targeted by a pair of missiles, passengers on an Israeli charter flight from Kenya have reached the relative safety of home. CNN's Matthew Chance reporting on that.

(BEGIN VIDEOTAPE)

CHANCE (voice-over): Relief in Tel Aviv, their aircraft survived the twin missile attack. Disaster over Mombasa was avoided. On arrival, passengers were met by loved ones. Amid emotional scenes, they spoke of their flight from Kenya so nearly brought to a violent end.

UNIDENTIFIED FEMALE: We heard a bump and they told us at first that they think a bird is stuck in the engine, but they didn't - they knew from the start what was going on, and they didn't tell us the whole flight.

UNIDENTIFIED MALE: (UNINTELLIGIBLE)

UNIDENTIFIED FEMALE: (UNINTELLIGIBLE) was dealing just everything as usual.

CHANCE: A home video recorded in the final minutes of the flight shows Israeli warplanes escorting the airliner into Tel Aviv. Nearly six hours after takeoff, passengers had only just been told what happened.

UNIDENTIFIED FEMALE, (through translator): A missile tried to intercept us, says this woman. We were afraid. We don't know how the plane will land.

CHANCE: Touchdown was met with celebration. Arkia Flight 582, a charter, took off from Mombasa on Thursday morning, 262 risks on board. Only seconds later, police say at least two missiles were fired at the plane from the ground. The plane was unscathed. What appeared to be missile launchers have been found near by.

UNIDENTIFIED MALE: Right after takeoff from Mombasa, as we were retracting the landing gear, we felt some bump, which we had no idea at the time. It was a very small bump. We had no idea at the time what it was, and right after that we saw two white stripes passing us by on the left side from the back of the airplane towards the front, which disappeared after a few seconds.

CHANCE: Some of these passengers had themselves been staying at the Paradise Hotel in Mombasa, bombed just minutes after their plane came under attack, escaping death twice in one day, far better one says than not at all.

(on camera): Many of the passengers we spoke to told us they had chosen Mombasa in order to escape the tension and bloodshed of Israel. Israeli officials now warning of more threats against Israeli citizens overseas, many of these passengers are simply relieved to have made it home.

Matthew Chance, CNN, Ben Gurion Airport, Israel.

(END VIDEOTAPE)

SAVIDGE: If al Qaeda carried out today's missile attack on the Israeli jetliner in Kenya, it would mark a major addition to the terrorist group's arsenal. CNN has reported extensively on attempts by al Qaeda to acquire heat-seeking missiles like the Stinger.

Here's CNN national correspondent Mike Boettcher.

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): Two missile launchers were found 300 meters from the end of the runway in Mombasa. The launchers appear to be variants of the Russian design SAM-7. Al Qaeda's interest in surface-to-air missiles is clear from their own videotape archives obtained exclusively by CNN last August.

One videotape included this, a lengthy and detailed video presentation of how to fire a SAM-7. In another al Qaeda tape produced before the group was forced to flee Afghanistan, classroom instruction is applied in the field. Hooded al Qaeda operatives at a location believed to be in Afghanistan take what appears to be a Chinese variant of the Russian SAM-7, known as a "red cherry", assemble it, then actually fire it.

Al Qaeda had also committed their knowledge to paper. These manuals discovered in an al Qaeda safehouse after the fall of Kabul to coalition forces contain instruction in how to use several types of surface-to-air missiles including American made Stingers. Still, surface-to-air missile systems are not foolproof. If infrared guided missiles like the SAM-7 do not lock onto an aircraft's jet exhaust, the heat-seeking missiles will miss their target.

That was apparently the case in the failed Mombasa attack and in another failed attack last May in Saudi Arabia, in which investigators believe a Sudanese man with al Qaeda links fired at a U.S. plane as it took off from Prince Sultan Airbase. Kenyan officials blame al Qaeda for the Mombasa suicide bombing and missile attack.

But in Beirut, Lebanon, a previously unknown group called the Army of Palestine claimed responsibility, saying it was meant to coincide with the November 29, 1947 United Nations decisions that partitioned Palestine and allowed for the creation of Israel.

(on camera): CNN has learned that anti-terror coalition intelligent sources are investigating whether this most recent attack is the work of several groups acting together. Attention is being focused on al Qaeda and Lebanese Hezbollah, which previously has been accused of launching attacks against Israeli targets outside the Middle East.

(voice-over): And according to those same sources, this man, Saif Al-Adel, whose name appears on the FBI's Most Wanted Terrorist List is getting close scrutiny. An al Qaeda operative with close ties to Lebanese Hezbollah, Al-Adel is already wanted in connection with the 1998 attacks on U.S. embassies in Kenya and Tanzania.

Coalition intelligence sources point out that if anyone had the experience and means to plan a combined attack in Africa, it is Saif Al-Adel.

Mike Boettcher, CNN, Atlanta.

(END VIDEOTAPE)

SAVIDGE: Still ahead, U.N. inspectors find a place that was at one time dangerous, but is it still? We'll show you what they found and how the Iraqis responded just ahead.

And football and feasting in a potential war zone. U.S. troops take in the holiday just miles from the Iraqi border.

(COMMERCIAL BREAK)

SAVIDGE: United nations inspectors carried out a second straight day of hunting for suspected weapons of mass destruction in Iraq. Among the sites checked, a plant that at one time produced deadly toxins.

CNN senior international correspondent Nic Robertson is in Baghdad and he has the latest.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): One interesting detail to emerge from the inspectors who went to that animal vaccine facility on the south side of Baghdad, they said that in 1996, U.N. weapons inspectors following Iraq's declaration of producing some biological weapons there at that facility that they had destroyed the equipment the Iraqis had been using to make those biological weapons.

Botulinum toxin, which is the most deadly of all the biological warfare agents. However, following the destruction of those particular items of equipment, there were some other items that the Iraqi officials didn't declare part of that program, including a fermenter. Now the inspectors went ahead and tagged that equipment.

The inspection team who went back to that facility today said some items of equipment including that tagged fermenter couldn't be found. Now, they asked the Iraqi official present, where it had gone, what happened to it. The Iraqi official said it had been moved to another facility on the north side of Baghdad. The inspectors said OK, we'd like to go and see that and verify that piece of equipment.

They were given permission to do that, and according to the inspectors, they found all the items that weren't at the Daura facility on the south side of Baghdad. They found them and accounted for them at this other facility. This is the type of cooperation that the U.N. inspectors have been looking for from Iraqi officials and again, on their second day of inspections here an indication that in these early stages that is the type of cooperation they're getting. Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

SAVIDGE: It is Thanksgiving with a real edge for U.S. troops just across the border from Saddam Hussein's forces.

And some disturbing signs of how lean times really are for many Americans this Thanksgiving. That story just ahead.

(COMMERCIAL BREAK)

SAVIDGE: Many U.S. military personnel are far from home this Thanksgiving, but they do their best to keep up the spirit of this uniquely American holiday no matter where they are.

CNN senior international correspondent Walter Rodgers is with the American forces in Kuwait.

(BEGIN VIDEOTAPE)

WALTER RODGERS, CNN SENIOR INTERNATIONAL REPORTER (voice-over): At Camp New York, 15 miles south of the Iraqi border, the U.S. Army's First Brigade Combat Team celebrated Thanksgiving running what they called a turkey trot.

At the U.S. Marine's Camp Commando they mustered to bagpipes because the unit commander is a Virginian of Scott's Irish descent. It was your traditional Hispanic American, African American, Asian American Thanksgiving away from home.

COL. JOHN CUNNINGS, U.S. MARINES: We also need to pay attention, always enforce protection, and we know in that regard Marines are always ready, right?

RODGERS: A Lutheran chaplain from the Navy offered a prayer of thanksgiving for the Marines.

LT. MATTHEW RICHARD, U.S. NAVY CHAPLAIN: You are the ones for whom a nation indeed many, many in this world are truly thankful.

UNIDENTIFIED MALE: Now thank we all our God...

RODGERS: And after thanking divine providence, it was off to a chow line. This day, the Marine senior officers served the men and women in their command.

COL. LAWRENCE BROWN, U.S. MARINES: Usually they're working for me, and this is just a small way of me paying them back.

RODGERS: It took 56 turkeys to feed the First Marine Expeditionary Force here.

UNIDENTIFIED MALE: It was great. It's great. It's a lot better than what we've been getting.

UNIDENTIFIED MALE: Outstanding. Outstanding.

UNIDENTIFIED FEMALE: It's great, sir. I'm a cook, so I mean it has to be good.

RODGERS: Even though it was Thanksgiving, military preparations did not pause, plenty of work to be done here before these units are ready for battle. So, the Marines held what they call the "Kuwait turkey bowl" while they wait for what they call the beans, bullets and band-aids to arrive.

(on camera): Football and feasting aside, there is no question these Marines miss their families during the holidays. The Navy chaplain told me the one question he's asked more than any other is how long do you think we'll be here? And he replies reminding them of the passage from the Lord's Prayer, which goes "Give us this day our daily bread". Beyond that, no one's making any predictions here.

Walter Rodgers, CNN with the U.S. Marines in the Kuwaiti desert.

(END VIDEOTAPE)

SAVIDGE: The holidays tend to be a good time of year for food banks with donations usually rising, but with the economy limping along that is not necessarily the case this year, as CNN's Rusty Dornin explains.

(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): No one needs to tell Angie Lewis times are tough. She stood in line for nearly an hour to get a holiday food basket.

ANGIE LEWIS, FOOD BASKET RECIPIENT: I got laid off. Actually I had a job for a few months and then they gave me -- they shorted my hours and so I'm looking for another job.

DORNIN: With the jobless rate in some major metropolitan areas like San Jose, New York and Miami in excess of seven percent, some who once lent a hand to charities now have their hands out. This New York soup kitchen even gets job hunters.

LARRY GILE, ST. JOHN'S BREAD & LIFE: There's a tremendous hunger for employment. People come to us constantly offering to volunteer, are we hiring? Can we help them?

DORNIN: The food bank in San Francisco gives groceries to thousands of needy in the Bay area, now it's in need.

PAUL ASH, SAN FRANCISCO FOOD BANK: If you walk into this warehouse for the first time, it looks like there's a lot of food here. But if you walk into your local grocery store and saw 40 of the shelves - 40 percent of the shelves empty like you see in our racks, you would notice the difference immediately.

DORNIN: Grocery stores once made huge contributions to food banks, not this year. ASH: Grocery chains no longer donate most of their dented and dinged cans and food items to food banks. They get resold.

DORNIN (on camera): When the shelves are this empty, food banks have to send trucks across country to get donation. This week San Francisco sent a truck to Alabama to pick up 20 tons of chicken.

(voice-over): That cost money, money many agencies don't have this year. Every year in downtown San Francisco more than 6,000 people eat a Thanksgiving meal at Glide Memorial Church. This year, talking turkeys, donations were down 60 percent.

(on camera): Are people more hard-hearted this year or are they just hard up?

REV. CECIL WILLIAMS, GLIDE MEMORIAL CHURCH: People are hard up. Before anything, during the holiday season, no matter how hard-hearted people may be, something happens. Their hearts melt and they become more responsive, but when you don't have, it's a different story.

DORNIN (voice-over): A story of holidays and for many, hard times.

WILLIAMS: So we're going to take in -- no doubt about it.

DORNIN: Rusty Dornin, CNN, San Francisco.

(END VIDEOTAPE)

SAVIDGE: Time is running out for you to weigh in on our "Question of the Day". Should all commercial airliners be equipped with missile evasion technology, even if it's expensive?

Log on to CNN.com/wolf to vote. We'll have the results immediately when we come back.

(COMMERCIAL BREAK)

SAVIDGE: Here's a chilling way to raise money for charity. It is also our "Picture of the Day".

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Eight, seven, six, five, four three, two, one.

UNIDENTIFIED MALE: Eight, seven, six, five, four, three, two, one.

UNIDENTIFIED MALE: Eight, seven, six, five, four, three, two, one.

(END VIDEO CLIP)

SAVIDGE: In temperatures well below freezing several dozen people plunged into chilly -- a chilly Connecticut lake this morning. It's a holiday tradition that raises money for the Muscular Dystrophy Association.

And finally we're going to have one last look at our Web "Question of the Day". Remember earlier we asked you this. Should all commercial airliners be equipped with missile evasion technology, even if it's expensive?

Sixty-one percent of you said yes. Thirty-nine percent of you said no. Of course, this is not a scientific poll.

That's it for us. Thanks very much. Have a happy Thanksgiving.

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