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CNN Wolf Blitzer Reports

Winter Storm Guarantees White Christmas For MidWest, East Coast; North Korea Continues Tough Talk on Nuclear Arms

Aired December 24, 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.


WOLF BLITZER, HOST: WOLF BLITZER REPORTS starts right now.
(BEGIN VIDEOTAPE)

BLITZER (voice over): Now on WOLF BLITZER REPORTS it will be a white Christmas or a wet Christmas for travelers and for retailers a rough Christmas. From around the world, Christmas wishes come true.

UNIDENTIFIED MALE: I love you and I always will, Christie (ph). Christie Rickelhoff (ph) will you marry me?

UNIDENTIFIED FEMALE: Yes, I will.

BLITZER: And wishes still to be realized.

UNIDENTIFIED MALE: Our message to the world is to restore peace to the city of Baghdad.

BLITZER: But a new blow to peace as North Korea warns of a nuclear catastrophe and threatens the U.S. with merciless punishment.

UNIDENTIFIED MALE: This is a regime which is collapsing, failing regime internally.

BLITZER: Iraq may have downed a drone but it's gunning for the real thing.

MAJ. PAUL MATIER, U.S. AIR FORCE: They're shooting real bullets. They're not shooting BB guns at us. There's real bullets. There's real missiles.

BLITZER: Iraq springs a trap for U.S. pilots, a CNN exclusive. We talked with two of them. And, it would make holiday gift buying a little easier next time, almost $300 million up for grabs on Christmas.

(END VIDEOTAPE)

BLITZER (on camera): It's Christmas Eve, December 24, 2002. I'm Wolf Blitzer in Washington. It really will be a white Christmas for millions of Americans but in many cases it could be too much of a good thing. You're looking at a live picture now of the White House where snow has begun falling all afternoon. It's coming down. Winter storm warnings are posted indeed throughout the country. Capitol Hill, take a look at this picture, a live picture from Capitol Hill in Washington where it's snowing as well. The forecast from New Mexico to Pennsylvania, some areas forecast to get more than a foot of snow. Flooding is also a problem in other areas. We have reports from around the country and we begin in the Heartland.

(BEGIN VIDEOTAPE)

TARYN MEEKS, CNN CORRESPONDENT: I'm Taryn Meeks in Oklahoma City. This state was hit again today with freezing rain and snow. So far it's dumped up to a foot of snow in certain areas and it's being blamed for at least three fatality accidents.

Work crews were out all night and day spreading sand and salt on the roads but are having a tough time keeping up with Mother Nature. Some back roads, even major thoroughfares are still covered in a sheet of ice. The storm is expected to let up by tomorrow, though, with partly cloudy skies so we should expect to see a cold but possibly sunny Christmas Day.

DEIAH RILEY, CNN CORRESPONDENT: I'm Deiah Riley in Atlanta where it's cloudy and misty for folks traveling to their holiday destinations by cars. As you can see, it's slow and go, nothing but headlights along most Atlanta freeways but at the world's busiest airport, Hartsfield International, the forecast is much brighter. We found only minor delays there.

ELIZABETH HUR, CNN CORRESPONDENT: I'm Elizabeth Hur in Albany, New York, and we're expecting as much as two feet of snow and as you can imagine local residents are bracing for the worst and flocking to the grocery stores. The stores will be closing early tonight for the holiday and the store manager here tells us even with all 21 registers open, the lines have been steadily growing throughout the day.

Shoppers say they just want to make sure they have all the basics like water, milk, and lots of cereal. Now, we've gotten plenty of snow in Albany so far but the storm we're expecting tomorrow is supposed to be the worst yet and people say they will be ready.

(END VIDEOTAPE)

BLITZER: And thanks to all of our affiliate reporters around the country. For more on the Christmas Day forecast we turn to Rick Reichmuth at the CNN weather center.

(WEATHER REPORT)

BLITZER: All right thank you very much Rick. Last minute shoppers are filling the stores today but it may be a case of too little too late. Experts predict this will be the weakest holiday shopping season in years. CNN's Ceci Rodgers is joining us now live from a mall just outside Chicago - Ceci.

CECI RODGERS, CNN CORRESPONDENT: Hi, Wolf. It's not over until it's over according to retailers and there are plenty of people here at Woodfield Mall, last minute shoppers packing the stores, many of them men who procrastinated in buying gifts for their significant others and their mothers and the like. We're seeing them kind of walking around anxiously looking from store to store and they don't have much more time. They literally have only two hours left until the stores close.

(BEGIN VIDEOTAPE)

RODGERS (voice over): Shoppers are running out of time to buy gifts for Christmas.

UNIDENTIFIED MALE: We're looking for a special black hat.

RODGERS: Retailers hope those last minute shoppers will spend enough to salvage what's shaping up as the worst holiday sales season in years. Barring miracle, holiday sales in stores open more than a year may rise only between 1.5 and 2.5 percent from last year. One reason people are not buying as many gifts has to do with the uncertainty about a possible war with Iraq but the main reasons, analysts say, are the economy and job worries.

KURT BARNARD, RETAIL ANALYST: When jobs are scarce and when people are worried about the possibility of losing their jobs and they hold back, keep their hands in their pockets, and spend as little as they can get away with.

RODGERS: Even the big discounters, like Wal-Mart, are warning that this year's sales are so far disappointing. Target said its sales continue to fall below its modest forecast for a three to five percent increase and hurting the most high-end stores, such as Bloomingdale's and Macy's.

DANA TELSEY, SHOPPER: The economy is so bad and so many people are out of work and I think more people need more of the spirit rather than of materialistic things.

RODGERS: For shoppers with the means to buy, department stores are offering the deals of a lifetime.

UNIDENTIFIED FEMALE: The level of promotions and the level of markdowns I think is greater than everyone expected and I think consumers overall, they know the longer they wait the deeper the discount.

RODGERS: Retailers are hoping the bargains will cause last minute shoppers to spend more than they had planned.

(END VIDEOTAPE)

RODGERS (on camera): But those markdowns are going to continue. In fact, things that are 50 percent off today, on the day after Christmas will be 50 and 60 percent off, the day after New Year's 75 percent off. So, consumers who have been well-trained in this whole game know to wait until those better bargains come along. In the meantime, that means lower profit margins and harder times for retailers - Wolf.

BLITZER: Ceci Rodgers at a mall outside Chicago, Ceci thanks very much. Here's your chance to weigh in on this story. Our web question of the day is this. How much are you spending this Christmas compared to last year, the same, more, less? We'll have the results later in this broadcast. Vote at cnn.com/wolf. While you're there, I'd love to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

Even though the holiday shopping overall has been disappointing, business is brisk at stores selling Powerball lottery tickets. The jackpot is estimated, get this, $280 million, and the numbers will be drawn Christmas night. Would be winners are lining up here in the District of Columbia, in the Virgin Islands, and in 23 states. CNN's Michael Okwu is in Greenwich, Connecticut and he's joining us from there - Michael.

MICHAEL OKWU, CNN CORRESPONDENT: Wolf, good evening to you. All day we've been bringing our viewers shots of this particular location in Greenwich, Connecticut because all day we've been witness to this relentless need for instant wealth.

I mean who can't relate to it, $280 million. That's about $151 million if you take the lump sum before taxes, and people have been coming in from far a field as far away as New Jersey and parts of New York, because in Connecticut this is only one of 23 states, as you mentioned, where you can actually play the Powerball lottery. I just want to talk to some of the people here. Sir, where are you coming from?

UNIDENTIFIED MALE: I'm from Mt. Vernon, New York.

OKWU: From New York, Mt. Vernon?

UNIDENTIFIED MALE: Yes.

OKWU: So you drove in here, you took the bus, the train?

UNIDENTIFIED MALE: I drove in here. I drove.

OKWU: What is your dream? What do you want to buy if you hit the big Christmas Day jackpot?

UNIDENTIFIED MALE: I will pay all my bills and I'll pay my student loan and help everybody else.

OKWU: Well, that's a lot of helping because I think you'll be, you'll have plenty after you pay your bills. I want to take a look inside here, Wolf, because this is where all the activity has been taking place since about six o'clock this morning. Connecticut State Lottery officials tell us that they have been selling some 1,600, 9,400 actually Wolf of these tickets every single minute. How's it been going today?

UNIDENTIFIED FEMALE: Pretty busy. This morning we are pretty busy. OKWU: I can see it on your face. Miss, how much money have you put down here? I see you're exchanging cash right now? No, I'm sorry she doesn't want to be on television. How much money, sir, have you put down here today? Well, I can tell you this much, there have been about, some people have come in here, Wolf, and they put down as much as $400. That's because they find out, their friends find out that they're actually coming down here for the day, and they say look, here are a couple bucks, why don't you play for me. But the chances of winning are pretty, pretty slim. It's pretty much about one in 120 million shot, Wolf, back to you.

BLITZER: Michael Okwu, wish everybody up there the best of luck. I hope somebody wins all that money and indeed help a lot of people win all that money. Michael Okwu with the latest on the Powerball. We'll be looking for that number, that winning number tomorrow. When we come back, patrolling the no-fly zone, we'll have an exclusive look aboard a flight during this very, very dangerous job. And, it's Christmas math in Bethlehem in the Holy Land. We'll take you there live later in this program. And tomorrow is a huge day for the movie studios. We'll give you the lowdown on the blockbuster debuts, but first today's news quiz. In which state was Christmas once banned, Ohio, Utah, Hawaii, Massachusetts, the answer coming up?

(COMMERCIAL BREAK)

UNIDENTIFIED MALES: Happy holidays from Kabul Afghanistan.

UNIDENTIFIED MALE: Hello, my name is (UNINTELLIGIBLE). I'm from (UNINTELLIGIBLE) Texas. I'm a helicopter mechanic (UNINTELLIGIBLE) and I'm working at Bagram Airfield in Afghanistan and I'd like to wish everybody a Merry Christmas back in the states.

UNIDENTIFIED MALE: I'm (UNINTELLIGIBLE) from Bagram Air Force Base and I just want to wish my wife a Merry Christmas.

UNIDENTIFIED MALE: Hey you all back in (UNINTELLIGIBLE) Georgia. I'm PFC James Mosely (ph). I just want to say a Merry Christmas to my grandma and grandpa and all my family and friends and I'll be home soon. Peace.

BLITZER: We'd like to wish you a Merry Christmas and a Happy New Year as well. Meanwhile, it's a war of words for now. The United States and North Korea are trading warnings over the north's decision to restart its nuclear program but today the warnings from Pyongyang took on a chilling new tone.

(BEGIN VIDEOTAPE)

BLITZER (voice over): The Bush administration says it doesn't want to see the nuclear crisis with North Korea escalate but the North Koreans apparently see things differently. Their rhetoric is getting more ominous. One state run newspaper warns that the U.S. refusal to negotiate with North Korea will lead to "uncontrollable consequences."

In addition, the North Korean defense minister says that if the U.S. were to provoke a nuclear war, the North Korean Army would "mete out determined an merciless punishment to the U.S. imperialist aggressors."

UNINTELLIGIBLE MALE: This is a regime which is collapsing, failing, regime internally. It's crying out for attention and assistance and it's unpredictable and so we've got to be very careful in managing this situation.

BLITZER: But the Bush administration is refusing to negotiate with North Korea until it goes back to its earlier pledge to stop developing a bomb. When the North Koreans broke that pledge, the Bush administration retaliated by cutting off earlier promised fuel supplies. One source of immediate concern, the U.S. still has nearly 40,000 troops along the demilitarized zone separating North and South Korea only miles from a million heavily armed North Korean troops.

At the heart of the problem, this nuclear reactor complex capable of producing weapons grade plutonium seen in this recent satellite photo. North Korea has alarmed the world by beginning to remove International Atomic Energy Agency monitoring equipment.

In Seoul, the South Korean cabinet was told that North Korea is moving nuclear fuel rods with enough plutonium to build two warheads. The North Koreans already have tested long range ballistic missiles capable of delivering a nuclear warhead and they're working on longer range missiles that potentially could hit the U.S. mainland.

Secretary of State Colin Powell has been on the phone with his counterparts in Japan, Russia, China, South Korea, Britain, France, and other major capitals trying to diffuse the crisis. But the clock is ticking. Some U.S. analysts fear the North Koreans may be only months away from developing a bomb. Others fear they already may have one or two.

(END VIDEOTAPE)

BLITZER (on camera): The stakes obviously are enormous, not only for the United States but indeed for the entire world. Patrolling Iraq's no-fly zone is a very dangerous job and U.S. pilots risk their lives every single day. Coming up, we'll have an exclusive report on the challenges they face. And later, another murder linked to the Baton Rouge, Louisiana serial killer. We'll have the latest on that story and talk to a local reporter about the search for the killer. Stay with us.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: I have a special request from you Santa. As I can't make it home for Christmas but I got a simple request. I need a message to go out to my girlfriend, a little stocking stuffer. Can you help me out with that?

SANTA: Sure, what would you like to say?

UNIDENTIFIED MALE: I'd like to tell my girlfriend, you know, we've been together for 15 great months, you know, the best part of my life ever. I love you and I always will Christie. Christie Rickelhoff, will you marry me? ALESSIO VINCI, CNN CORRESPONDENT: Christie if you can hear this message, sergeant please come here with me. Christie, did you hear what (UNINTELLIGIBLE)?

UNIDENTIFIED FEMALE: Yes, I did.

VINCI: OK, Christie can you hear us?

UNIDENTIFIED FEMALE: Yes.

VINCI: Did you hear from Jason asked you?

UNIDENTIFIED FEMALE: I did. Yes, I will.

VINCI: I didn't hear your answer though.

UNIDENTIFIED FEMALE: I said, yes I will.

VINCI: She said yes. All right, congratulations. When are you going to make it back home?

UNIDENTIFIED MALE: That's to be determined.

VINCI: That's to be determined, OK. Well, we got a very excited Jason here. Christie congratulations also to you.

BLITZER: Thanks to Alessio Vinci, our reporter in Kuwait for making that possible. We saw that live on CNN during our Noon Eastern Showdown Iraq. Congratulations of course to the two lovebirds as well.

And, in a Christmas message of his own read on state television, Iraqi President Saddam Hussein says U.N. inspectors will prove that his nation has no weapons of mass destruction. The Iraqi leader says that if the inspectors conduct themselves fairly, the results of the weapons hunt will come as "a great shock to the U.S. and will expose what he calls American lies and deceit.

As the inspectors hunt for weapons on the ground, U.S. pilots continue to patrol the no-fly zones over Iraq. Baghdad is doing its best to make that a very risky business as I found out during an exclusive visit with U.S. pilots in Saudi Arabia.

(BEGIN VIDEOTAPE)

BLITZER (voice over): When the Iraqis shot down an unmanned U.S. Predator drone over southern Iraq this week, the message was clear to U.S. fighter pilots who fly over the area on an almost daily basis.

The real Iraqi goal is to shoot down an American plane with a pilot or two onboard. This is how U.S. Air Force Brigadier General Dale Waters put it to me the other day when I met with him at the Prince Sultan Air Base in Saudi Arabia.

BRIG. GEN. DALE WATERS, US AIR FORCE: You know they've been trying for ten years to shoot down an airplane. I think we've been very lucky we haven't lost one. We keep a lot of great air crews up there doing the mission and we have good intelligence, so I think we do it smart but it's never zero risk.

BLITZER: That risk was dramatically underscored earlier this month. Two U.S. fighter jets took off from the Prince Sultan Air Base that morning for what they thought would be a routine patrol over the so-called no-fly zone in southern Iraq. But as they entered Iraqi airspace they saw something unusual. An Iraqi jet fighter had taken off from a base outside Baghdad and was heading toward the no-fly zone as well.

The U.S. planes gave chase. The Iraqi plane then already in the no-fly zone headed toward an area where U.S. reconnaissance had earlier detected Iraqi SAM or surface-to-air missile batteries. It was what U.S. pilots call a SAM trap. The Iraqi strategy was to lure the U.S. planes over the SAMs where they would be vulnerable. In order to avoid getting shot down, the U.S. planes headed back to Prince Sultan. The Iraqi plane flew back to its base as well.

CAPT. ROB NOVOTNY, U.S. AIR FORCE: We're fairly well trained. We've been doing this for 12 years and we're used to their games. We're used to their attempts to lure us in there and we know pretty much well in advance what they're trying to do.

BLITZER: U.S. Air Force Captain Rob Novotny was one of those pilots involved in the SAM trap. So they're trying to get you to fly over an area where they think they have a good shot of shooting you down?

NOVOTNY: I would say they're trying to get us in a position where some of their surface-to-air threats can become more of a factor.

BLITZER: But you knew that going into it?

NOVOTNY: Yes, we did.

BLITZER: So, you just make a U-turn and go back?

NOVOTNY: Well, we avoided those areas, absolutely.

BLITZER: U.S. Air Force Major Paul Matier was also one of the pilots involved in the incident. What was it like to actually see an Iraqi jet in the sky which is a highly unusual development.

MATIER: It is. It was exciting. I have to tell you I thought I'd be more nervous when it happened but I wasn't. The training took over when it happened. We had good communications from some of our other assets up there that the guy was flying and we did what we needed to do.

BLITZER: Major Matier sums it up this way.

MATIER: They're shooting real bullets. They're not shooting BB guns at us. There's real bullets. There's real missiles. We have to be ready in any event to deal with that kind of threat. Right now that we're here, this is the only place in the world where American forces are being shot at on a regular basis.

BLITZER: For these U.S. pilots, the war against Iraq has already begun.

(END VIDEOTAPE)

BLITZER (on camera): And it doesn't look like it's going to wind down anytime soon. When we come back, serial killer strikes again, why haven't police been able to catch the psychopath stocking Louisiana women? The latest on the manhunt, that and much more, plus Christmas in Bethlehem, we'll go live to Manger Square in the Holy Land where Christmas mass is getting underway.

And hot holiday movies find out what's steaming up theaters tomorrow after your holiday meal. Mr. (UNINTELLIGIBLE) joins us live but first a look at news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice over): Iranian President Mohammed Khatami says he's looking forward to warmer relations with Pakistan. The two neighbors have had their differences in the past but in a news conference concluding a visit to Pakistan, Khatami said he sees a bright future.

Chinese dissident Shu Wan Lee (ph) was freed from prison and put on a flight to the United States. The release came a week after the U.S. had appealed for the release of Shu and other political prisoners.

Seventeen inmates are dead and at least 30 more have serious injuries after a prison riot in Guatemala. The violence began amid complaints about prison food and visiting hours.

There's going to be legal fallout from October's Moscow theater siege. A Russian court has agreed to hear lawsuits against the city of Moscow seeking millions of dollars in compensation for families of victims and survivors. One hundred twenty-nine people died after Russian Special Forces stormed the theater ending a siege by Chechan terrorists.

Not tonight, there's a report from Sudan on an effort to end the civil war there. London's "Daily Telegraph" reports that women are withholding sex in an effort to get their men to stop fighting. It's an unusual idea but not a new one. It harkens back to the plot of Liz Estrada, a drama written in Ancient Greece.

'Tis the season, a Moscow museum is showing off Russian Christmas tree ornaments. The 2,500 pieces span 70 years. Ironically, it was assembled by an American who lives in Moscow and became fascinated with Russian ornaments just five years ago, and that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK) BLITZER: Welcome back to CNN. I'm Wolf Blitzer. Coming up, John Walsh of "America's Most Wanted," he turned to CNN to help catch a child killer. He joins us next with some dramatic results, but first let's look at some other stories making news right now in our CNN news alert.

(NEWSBREAK)

BLITZER: A Maryland man sought in the murder of his girlfriend's eight-year-old daughter is in custody in Alabama after the case was profiled on "America's Most Wanted" and once again on CNN. Jamal Abeokuto was arrested this morning after barricading himself in a motel room in Birmingham. This capture came shortly after the case was profiled last night on CNN's "LARRY KING LIVE." "America's Most Wanted" host John Walsh was on the show last night with Larry King and John's joining us now live on the phone to tell us about this case. John, tell us what happened.

JOHN WALSH, "AMERICA'S MOST WANTED" (via telephone): Well, Wolf, we were looking for this guy. He is alleged to have murdered his 8- year-old girlfriend's daughter, beautiful little Marciana Ringo (ph) and left her body in a field, slit her throat and he became the subject of a big man hunt in Maryland. He was on "America's Most Wanted" on Saturday night.

We got several tips he might have fled to Alabama. Baltimore police were stumped. On Monday it went on "LARRY KING" on CNN and Larry has small children just like I have, an 8-year-old son. And I said, Larry, can we get this guy on? He could be anywhere. We need to find him before he hurts some body else. Larry said, Absolutely and Larry's executive producer and producers put Abeokuto's picture and his description on "LARRY KING" last night and about three hours later we got some more information and tips that he was in a motel in Birmingham and he was apprehended and it was just incredible.

We just talked to Marciana Ringo's mom, Milagro, and she said even though this is the worst Christmas, the murder of her daughter, but the best Christmas present is that this low life has been captured in Birmingham. So, you know, my hat's off to Larry for fitting it in the show last night because it closed the door on this guy.

BLITZER: Our hats are off, of course, to you as well, John, and your entire team.

Who specifically made the call? How were they watching? What did they say when they made that call, which is always, obviously, a courageous thing for a viewer to do?

WALSH: Well, we don't know because so many people call "America's Most Wanted" hotline anonymously. We got several tips on Saturday night that he was in the Birmingham area but we didn't know exactly where.

We got more tips last night after Larry allowed me to profile Abeokuto on the show. We got several anonymous tips that he was in a motel. He barricaded himself in the motel and the FBI took him down. So we don't know who called, but I always say it, whoever they are, God bless them for having the courage to make that call. I always say, Remember you can remain anonymous, police don't trace the calls. But Wolf, several people watching Saturday night and several people last night pinpointed the exact motel where this low life was and we thank God they had the guts to make that call.

BLITZER: We do as well. John, what is this, 736? How many bad guys have you caught thanks to your work?

WALSH: Well, you're exactly right. This makes 736 people. And It's not just my work and the wonderful staff of "America's Most Wanted." It's the American public. We've caught people in 31 countries. And, of course, last night with the help of Larry and CNN, we closed the door on this guy.

But you're right, 736 guys, 15 off of the FBI's "10 Most Wanted" over the years. So, it's been the public that has made the difference in catching these guys.

BLITZER: John Walsh, a good friend. Also a god friend of CNN's. Thanks for all of the good work that you do. We'll be watching all of your programs as well. John Walsh of "America's Most Wanted."

Meanwhile, there's another death that's been linked to a serial killer in Louisiana. Police say a Lafayette woman who was found beaten to death last month is indeed the killer's fourth confirmed victim. The three other victims, all of them women, were from Baton Rouge.

The latest from Chuck Huebner with our affiliate, KLFY.

(BEGIN VIDEOTAPE)

CHUCK HUEBNER, KLFY REPORTER (voice-over): Officials with the Acadiana crime lab say the man who killed 23-year-old Trinicia Denee Colomb is also responsible for the death of three Baton Rouge women: 41-year-old Gina Green, 22-year-old Charlotte Pace and 44-year-old Pam Kinamore.

Ray Wickenheiser is with the Acadiana crime lab. He says the same DNA has been found at all four crime scenes.

RAY WICKENHEISER, ACADIANA CRIME LAB: We can develop profiles from a wide variety of biological items occurring at crime scenes. That's what was done in this case.

In addition to the DNA evidence, Lafayette sheriff's detectives claim to have a witness who may have seen the serial killer's vehicle.

On November 21, the same day Colomb disappeared, a witness claims to have seen a white, late model, stepside Chevy pickup truck parked directly behind Colomb's black Mazda, on a gravel road near the Academy of the Sacred Heart. That is the same type of truck reportedly used in July by the serial killer to dispose of Kinimore's body under the Whiskey Bay Bridge.

Colomb's body was found on November 24 by a hunter, who was walking in a wooded area no far from Mill Street in Scott.

DET. ALLEN VENABLE, LAFAYETTE PARISH SHERIFF'S OFFICE: We're asking the public to assist us by trying to recall any events which may identify that vehicle in the area of Grandpatill (ph) on November the 21st, or at any time after that up until her body was discovered on the 24th of November on Sunday on (UNINTELLIGIBLE) near Mill Street.

No matter how insignificant you think the information may be, it could be very important to either our investigation or to that of the ones be being conducted by the task force in Baton Rouge.

(END VIDEOTAPE)

BLITZER: That report from affiliate reporter Chuck Huebner of KLFY. Thanks very much, Chuck, for that report.

With us on the phone now to talk a little but more about the serial killer's latest victim, reporter Marsha Sills of "The Daily Advertiser" in Lafayette. Are you getting any sense that they're getting closer to finding this killer, Marsha?

MARSHA SILLS, THE DAILY ADVERTISER: It's very encouraging now that the task force is now working with the sheriff's office and that they have confirmed that there is a match with Colomb. So it's kind of given new information to the case in Baton Rouge.

BLITZER: What is the latest information you have uncovered in your reporting?

SILLS: Today there really has been no information. The sheriff's office here has received more tips as far as information on the case, although nothing has led to any substantial leads so far.

BLITZER: Is there -- the way these four women were killed, as far as you know, were they identically killed?

SILLS: No, they were not. The first victim, the first known victim was strangled in her apartment. The second was stabbed and Kinimore was abducted from her home and her throw was slit.

With Colomb, they told us her death was caused by blunt trauma to the head. And that's all they've released so far.

BLITZER: Like you in Louisiana, all of us around the country have been watching this very sad story unfold, this serial killer.

Are people coping at this time of the year especially, around Christmas, are they scared to go out of their homes, the women especially?

SILLS: There's more of an awareness, of course, especially since Baton Rouge was able to link the deaths of the three women to a serial killer. Since then the sheriff's office here offers a free course, and we're about 50 miles southeast from Baton Rouge. And even after the link was made, women here responded by attending the class, they had to hold extra courses. It's usually held once a month. And the sheriff's office had to offer more classes to keep up with the influx of women interested in learning how to defend themselves. So...

BLITZER: All right. I was going to say, Marsha Sills, thanks for spending a few moments with us from "The Daily Advertiser" in Lafayette. We'll continue to cover this story as you will as well.

Good luck to all the people in Louisiana searching for this serial killer.

The mass near Manger Square in the Holy Land is happening as I speak right now. We'll take you live to the service in Bethlehem.

Also, after your presents are unwrapped, you can head to the movies, of course. There are a lot of pics on the big screen in the coming days. We'll tell you about them, straight ahead.

(COMMERCIAL BREAK)

BLITZER: Here's a look at how people around the world are already celebrating Christmas. Many Australians marked the holiday much like Americans by decorating their homes with lights.

There's a festive feeling on the streets of India's largest cities. Some stores in this largely Hindu country offer as many Christmas trinkets as any American mall.

And it's a similar scene in Baghdad, with this store is brightly decorated despite the dark cloud of war hanging over Iraq.

After recent violence, Israel last month reoccupied the West Bank town of Bethlehem. The troops have pulled back for the holiday now, but in the traditional birth place of Jesus it's been a dreary Christmas.

Let's go live to CNN's Kelly Wallace. She's joining us from Manger Square in Bethlehem.

Give as little flavor on this Christmas Eve. What's going on, Kelly?

KELLY WALLACE, CNN CORRESPONDENT: Well, Wolf, it's a cold, wet night here in Bethlehem, and it is matching the mood of many Palestinian Christians here who say this is really a Christmas they would like to forget due to Israel's continued military presence in the city.

The traditional midnight mass celebration, though, beginning just about 30 minutes ago. The church packed with parishioners there. The religious ceremonies continuing even as Bethlehem's mayor has called for no holiday decorations in Manger Square, no holiday celebrations to protest the Israeli occupation and for the second year in a row, Yasser Arafat's seat inside that mass left empty and that is because Israel has banned the Palestinian leader from traveling here.

He is a practicing Muslim, but he has come here in years past. Israel, though, not allowing him to come because Israelis say he has not done enough to crack down on terror.

So inside the church and outside on the streets in this, the holy city of Bethlehem, religious ceremony taking a bit of a back seat to politics because Palestinian Christians and Palestinian Muslims were protesting throughout the day. Protesting against the Israeli presence, making it very clear that these Palestinian Christians and Muslims are not satisfied with Israel's decision to pull its troops away from Manger Square in the center of the city, but to remain on the outskirts of Bethlehem.

The Israelis, for their part, say they would like to take their troops completely out of Bethlehem. They say they only moved in a few weeks ago after a November 21 bus bombing, a suicide bombing in Jerusalem that claimed the lives of 11 Israelis. That bomber was from Bethlehem.

The Israelis, as you know, face tremendous international pressure to pull their troops away from Manger Square and to allow Palestinian Christians from throughout the West Bank and the Gaza strip to travel here to Bethlehem. But Palestinian sources are telling CNN that many Christians in other West Bank towns and in the Gaza strip were unable to obtain the special permits the Israelis were requiring here to travel here for Christmas services -- Wolf.

BLITZER: We just saw some live pictures, Kelly. I take it midnight mass, it's now past midnight in Bethlehem, midnight mass is continuing at the churches in Bethlehem?

WALLACE: That is correct. It started about right at the stroke of midnight. It will continue until a little well after 1:00 a.m. A colleague who is inside the church reporting that it is a packed crowd in there, inside, for midnight mass.

Wolf, you know, this is normally the most important night, the busiest, the holiest, the most joyous night for people in this city, but many Palestinian Christians say it's really very different. Many Christians from around the world, many tourists it seems have stayed away -- Wolf.

BLITZER: Kelly Wallace in Bethlehem, thanks very much for that report. I do indeed remember earlier Christmas Eves in Bethlehem covering what was a very joyous occasion, a very happy time for Palestinians and a lot of tourists who used to come to Bethlehem on Christmas Eve. Obviously they're staying away in big numbers right now. Kelly Wallace in Bethlehem. Thanks very much.

A rough economy is taking a toll on the nation's charities, many of which report donations down sharply this year. Those that feed the poor are among the hardest hit. CNN's Rusty Dornin reports on their season of need.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: If it's not done enough for people, find some that's done.

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Finding some to feed 3,000 needy for the annual Christmas Eve dinner was not easy for Reverend Cecil Williams of Glide Memorial Church in San Francisco. Donations are down 45 percent.

This year the House of Prime Rib restaurant donated 2,000 pounds of prime rib.

(on camera): What would you have done if you hadn't gotten all this food donated at the last minute?

REV. CECIL WILLIAMS, GLIDE MEMORIAL CHURCH: Well if we hadn't had it donated, I tell you, what we'd be standing outside saying help, help.

DORNIN (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. I actually had a job for a few months and then 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 7 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: There's a tremendous hunger for employment. People come to us constantly offering to volunteer, are we hiring, can we help them.

DORNIN: Some shelves are empty at the San Francisco food bank. Donation there are down 40 percent, and they're list of who needs help is growing.

PAUL ASH, SAN FRANCISCO FOOD BANK: A third of the people said in the last six months someone in their household had either lost their job or had their hours reduced. So we are seeing a lot of people who were working or recently working who need food assistance.

DORNIN: It means spreading the who will day food baskets a little thinner and sometimes a little more reassurance for those in need.

WILLIAMS: Merry Christmas to you. Hey, merry Christmas, brother.

DORNIN: Rusty Dornin, CNN, San Francisco.

(END VIDEOTAPE)

BLITZER: Five golden rings and a partridge in a pear tree. Sounds nice. But in this tight economy, it might be difficult for your true love to afford those gifts. Coming up, we'll do the actual math to find out value the "12 Days of Christmas" presents.

And later, Santa's already well on his way for the evening. We're tracking him on the official Web site when we return.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BLITZER (voice-over): Earlier we asked in which state was Christmas once banned? The answer, Massachusetts. The Puritans frowned on feasting, drinking and dancing and didn't consider Christmas a true religious holiday. The penalty for breaking the law five shillings for every offense.

(END VIDEO CLIP)

BLITZER: Five shillings. I guess that was a lot of money in those days.

This is of course one of the busiest times of the year for the movie industry with dozens of movies releasing right now. Joining me from Los Angeles, some the highlights, Russ Leatherman, also known as Mr. Moviefone. Thanks so much for joining us, Russ.

Let's talk about some of the movies. "Gangs of New York," it's a big movie out there, how's it doing?

RUSS LEATHERMAN, "MR. MOVIEFONE": It's doing very well. This is such a great time of year for movies. You not only have the big blockbusters but you have some of the smaller movies.

And "Gangs of New York" is just a movie you just have to go see. It's Scorsese's movie. Leonardo DiCaprio does a great job. Daniel Day-Lewis is fantastic in this movie. It's very gritty, it's very rough but gives us kind of a different perspective of how things started in New York and what happened to the immigrants and who they were. I think it's a fascinating movie that everybody should go try and see.

BLITZER: Good advice from Russ. What about "Chicago?"

LEATHERMAN: "Chicago" may be my favorite movie of the holiday season. It's just a fantastic time at the movies. Katherine Zeta Jones, was terrific. You don't know if they're actors singing and dancing or singers and dancers who are acting. So I think it's a great movie. Richard Gere is also in the movie, and even after the first 10, 15 minute of Richard Gere you start to appreciate him. So I really like this movie

BLITZER: Are you telling me we're going to hear Richard Gere actually singing, Russ?

LEATHERMAN: I know, it sounds painful. Like I said for the first 20 minutes you go I can't believe this is happening to me. But he's actually very good for the role and he comes through. He won't ruin it for you, I promise.

BLITZER: All right, what about "Confessions of a Dangerous Mind"? An important new movie as well.

LEATHERMAN: This was directed as George Clooney. It stars Sam Rockwell and he plays Chuck Barris, the game show guy, who did the Gong Show, the Newly Wed Game. Just a kind of crazy, wacky dude who believes he was a CIA operative. You never really know whether he was or whether he wasn't. But it's a fascinating case study and Clooney did a good job directing it. It's another fun movie to go see.

BLITZER: And movie that coming I believe tomorrow, "Catch Me if You Can." This is going to be a hot movie.

LEATHERMAN: Well, it is. It's of course Steven Spielberg. And this is Leo's second movie of the season. Leo DiCaprio that is, and he stars with Tom Hanks. It's a really fun caper movie. It's one of those movies you go out, you're glad you spent a couple hours. It's pretty light hearted but just a lot of fun. This is one of those movies where if you want to grab Aunt Mabel to quiet her down for a couple hours, this is the perfect movie.

BLITZER: And the con man who Leo DiCaprio plays will be on this program by the way tomorrow, 24 hours from right now.

Russ Leatherman, as usual, thank you for joining us.

LEATHERMAN: Thanks, Wolf, it was fun. I'll see you next time and enjoy the movies there are some great ones out there.

BLITZER: We will. By the way merry Christmas and happy New Year to you as well.

Every year experts at a Pittsburgh bank go through the lyrics of the song the "The 12 Days of Christmas," and calculates the prices of the gifts it describes. This year there is good news. Because of a sharp unexplained drop in the price of swans, the total price plunged almost $1,200. Get this 14,558.06.

Kyra Phillips has these important details.

(BEGIN VIDEOTAPE)

KYRA PHILLIPS, CNN CORRESPONDENT (voice-over): You probably know the song but do you know the prices? OK, bear with me. For a partridge in a pear tree, you don't need just a partridge, you need a pear tree. The partridge would set you back only $15, but the pear tree is $87.50. Turtle doves are more expensive. Two of them will cost $58. Three French hens? Is their nationality all that important? It would cost $15 or if you prefer, 15 Euros.

Next, four calling birds. Those birds must be calling for their agents because they're fetching a pretty good price -- $316. And if you visited a jewelry store lately, you may know the price of gold rings is up a little more this year. Five of them will cost $382.50. Six geese a-laying, 150. No word what geese get when they are not a- laying. Seven swans a-swimming is this year's biggest bargains. The price of swimming swans has plunged 40 percent to just $2,100. Ouch.

Eight maids a-milking being are cheap at $41.20 but you could just go to the movies and see J.Lo. as a maid. But nine ladies dancing, a big ticket item, $4,107.66. For some reason, ten lords a- leaping are cheaper at 3,921.44. Plenty lords in the British Parliament but how do you make them leap 1234? Eleven pipers piping. That's 1,614.60. And 12 drummers drumming, that's $1,749.15. Or just do what every all American does on Christmas, watch the bowl games and don't fall asleep at halftime, the drumming is free.

Kyra Phillips, CNN.

(END VIDEOTAPE)

BLITZER: Thank you very much, Kyra. The price of swans, good time to run out there right now, buy some swans. Very important information we provide here on this program.

Time is running out for your turn to weigh in on our Web question of the day. How much are you spending this Christmas compared to last year? The same, more, or less? Log on to CNN.com/wolf.

(COMMERCIAL BREAK)

BLITZER: Pope John Paul II at St. Peters Basilica at the Vatican getting ready for midnight Mass. Getting ready for this holy night, Christmas Eve.

Welcome back. It's not all pray, though. Our picture of the day on this Christmas Eve offers an interesting look at one of NORAD's most important missions of the year, tracking Santa Claus. Right now according NORAD official Web site, Santa is flying high, look at this, right over Europe. You of course can track Santa as well. Go to www.noradsanta.org.

Now, remember we've been asking you this, how much are you spending this Christmas compared to last? Twenty-three percent the same, 23 percent more, 54 percent less. This is not a scientific poll. That's all the time we have right now.

I'm Wolf Blitzer in Washington wishing all our viewers around the world a very merry Christmas.

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





Coast; North Korea Continues Tough Talk on Nuclear Arms>


Aired December 24, 2002 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: WOLF BLITZER REPORTS starts right now.
(BEGIN VIDEOTAPE)

BLITZER (voice over): Now on WOLF BLITZER REPORTS it will be a white Christmas or a wet Christmas for travelers and for retailers a rough Christmas. From around the world, Christmas wishes come true.

UNIDENTIFIED MALE: I love you and I always will, Christie (ph). Christie Rickelhoff (ph) will you marry me?

UNIDENTIFIED FEMALE: Yes, I will.

BLITZER: And wishes still to be realized.

UNIDENTIFIED MALE: Our message to the world is to restore peace to the city of Baghdad.

BLITZER: But a new blow to peace as North Korea warns of a nuclear catastrophe and threatens the U.S. with merciless punishment.

UNIDENTIFIED MALE: This is a regime which is collapsing, failing regime internally.

BLITZER: Iraq may have downed a drone but it's gunning for the real thing.

MAJ. PAUL MATIER, U.S. AIR FORCE: They're shooting real bullets. They're not shooting BB guns at us. There's real bullets. There's real missiles.

BLITZER: Iraq springs a trap for U.S. pilots, a CNN exclusive. We talked with two of them. And, it would make holiday gift buying a little easier next time, almost $300 million up for grabs on Christmas.

(END VIDEOTAPE)

BLITZER (on camera): It's Christmas Eve, December 24, 2002. I'm Wolf Blitzer in Washington. It really will be a white Christmas for millions of Americans but in many cases it could be too much of a good thing. You're looking at a live picture now of the White House where snow has begun falling all afternoon. It's coming down. Winter storm warnings are posted indeed throughout the country. Capitol Hill, take a look at this picture, a live picture from Capitol Hill in Washington where it's snowing as well. The forecast from New Mexico to Pennsylvania, some areas forecast to get more than a foot of snow. Flooding is also a problem in other areas. We have reports from around the country and we begin in the Heartland.

(BEGIN VIDEOTAPE)

TARYN MEEKS, CNN CORRESPONDENT: I'm Taryn Meeks in Oklahoma City. This state was hit again today with freezing rain and snow. So far it's dumped up to a foot of snow in certain areas and it's being blamed for at least three fatality accidents.

Work crews were out all night and day spreading sand and salt on the roads but are having a tough time keeping up with Mother Nature. Some back roads, even major thoroughfares are still covered in a sheet of ice. The storm is expected to let up by tomorrow, though, with partly cloudy skies so we should expect to see a cold but possibly sunny Christmas Day.

DEIAH RILEY, CNN CORRESPONDENT: I'm Deiah Riley in Atlanta where it's cloudy and misty for folks traveling to their holiday destinations by cars. As you can see, it's slow and go, nothing but headlights along most Atlanta freeways but at the world's busiest airport, Hartsfield International, the forecast is much brighter. We found only minor delays there.

ELIZABETH HUR, CNN CORRESPONDENT: I'm Elizabeth Hur in Albany, New York, and we're expecting as much as two feet of snow and as you can imagine local residents are bracing for the worst and flocking to the grocery stores. The stores will be closing early tonight for the holiday and the store manager here tells us even with all 21 registers open, the lines have been steadily growing throughout the day.

Shoppers say they just want to make sure they have all the basics like water, milk, and lots of cereal. Now, we've gotten plenty of snow in Albany so far but the storm we're expecting tomorrow is supposed to be the worst yet and people say they will be ready.

(END VIDEOTAPE)

BLITZER: And thanks to all of our affiliate reporters around the country. For more on the Christmas Day forecast we turn to Rick Reichmuth at the CNN weather center.

(WEATHER REPORT)

BLITZER: All right thank you very much Rick. Last minute shoppers are filling the stores today but it may be a case of too little too late. Experts predict this will be the weakest holiday shopping season in years. CNN's Ceci Rodgers is joining us now live from a mall just outside Chicago - Ceci.

CECI RODGERS, CNN CORRESPONDENT: Hi, Wolf. It's not over until it's over according to retailers and there are plenty of people here at Woodfield Mall, last minute shoppers packing the stores, many of them men who procrastinated in buying gifts for their significant others and their mothers and the like. We're seeing them kind of walking around anxiously looking from store to store and they don't have much more time. They literally have only two hours left until the stores close.

(BEGIN VIDEOTAPE)

RODGERS (voice over): Shoppers are running out of time to buy gifts for Christmas.

UNIDENTIFIED MALE: We're looking for a special black hat.

RODGERS: Retailers hope those last minute shoppers will spend enough to salvage what's shaping up as the worst holiday sales season in years. Barring miracle, holiday sales in stores open more than a year may rise only between 1.5 and 2.5 percent from last year. One reason people are not buying as many gifts has to do with the uncertainty about a possible war with Iraq but the main reasons, analysts say, are the economy and job worries.

KURT BARNARD, RETAIL ANALYST: When jobs are scarce and when people are worried about the possibility of losing their jobs and they hold back, keep their hands in their pockets, and spend as little as they can get away with.

RODGERS: Even the big discounters, like Wal-Mart, are warning that this year's sales are so far disappointing. Target said its sales continue to fall below its modest forecast for a three to five percent increase and hurting the most high-end stores, such as Bloomingdale's and Macy's.

DANA TELSEY, SHOPPER: The economy is so bad and so many people are out of work and I think more people need more of the spirit rather than of materialistic things.

RODGERS: For shoppers with the means to buy, department stores are offering the deals of a lifetime.

UNIDENTIFIED FEMALE: The level of promotions and the level of markdowns I think is greater than everyone expected and I think consumers overall, they know the longer they wait the deeper the discount.

RODGERS: Retailers are hoping the bargains will cause last minute shoppers to spend more than they had planned.

(END VIDEOTAPE)

RODGERS (on camera): But those markdowns are going to continue. In fact, things that are 50 percent off today, on the day after Christmas will be 50 and 60 percent off, the day after New Year's 75 percent off. So, consumers who have been well-trained in this whole game know to wait until those better bargains come along. In the meantime, that means lower profit margins and harder times for retailers - Wolf.

BLITZER: Ceci Rodgers at a mall outside Chicago, Ceci thanks very much. Here's your chance to weigh in on this story. Our web question of the day is this. How much are you spending this Christmas compared to last year, the same, more, less? We'll have the results later in this broadcast. Vote at cnn.com/wolf. While you're there, I'd love to hear from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

Even though the holiday shopping overall has been disappointing, business is brisk at stores selling Powerball lottery tickets. The jackpot is estimated, get this, $280 million, and the numbers will be drawn Christmas night. Would be winners are lining up here in the District of Columbia, in the Virgin Islands, and in 23 states. CNN's Michael Okwu is in Greenwich, Connecticut and he's joining us from there - Michael.

MICHAEL OKWU, CNN CORRESPONDENT: Wolf, good evening to you. All day we've been bringing our viewers shots of this particular location in Greenwich, Connecticut because all day we've been witness to this relentless need for instant wealth.

I mean who can't relate to it, $280 million. That's about $151 million if you take the lump sum before taxes, and people have been coming in from far a field as far away as New Jersey and parts of New York, because in Connecticut this is only one of 23 states, as you mentioned, where you can actually play the Powerball lottery. I just want to talk to some of the people here. Sir, where are you coming from?

UNIDENTIFIED MALE: I'm from Mt. Vernon, New York.

OKWU: From New York, Mt. Vernon?

UNIDENTIFIED MALE: Yes.

OKWU: So you drove in here, you took the bus, the train?

UNIDENTIFIED MALE: I drove in here. I drove.

OKWU: What is your dream? What do you want to buy if you hit the big Christmas Day jackpot?

UNIDENTIFIED MALE: I will pay all my bills and I'll pay my student loan and help everybody else.

OKWU: Well, that's a lot of helping because I think you'll be, you'll have plenty after you pay your bills. I want to take a look inside here, Wolf, because this is where all the activity has been taking place since about six o'clock this morning. Connecticut State Lottery officials tell us that they have been selling some 1,600, 9,400 actually Wolf of these tickets every single minute. How's it been going today?

UNIDENTIFIED FEMALE: Pretty busy. This morning we are pretty busy. OKWU: I can see it on your face. Miss, how much money have you put down here? I see you're exchanging cash right now? No, I'm sorry she doesn't want to be on television. How much money, sir, have you put down here today? Well, I can tell you this much, there have been about, some people have come in here, Wolf, and they put down as much as $400. That's because they find out, their friends find out that they're actually coming down here for the day, and they say look, here are a couple bucks, why don't you play for me. But the chances of winning are pretty, pretty slim. It's pretty much about one in 120 million shot, Wolf, back to you.

BLITZER: Michael Okwu, wish everybody up there the best of luck. I hope somebody wins all that money and indeed help a lot of people win all that money. Michael Okwu with the latest on the Powerball. We'll be looking for that number, that winning number tomorrow. When we come back, patrolling the no-fly zone, we'll have an exclusive look aboard a flight during this very, very dangerous job. And, it's Christmas math in Bethlehem in the Holy Land. We'll take you there live later in this program. And tomorrow is a huge day for the movie studios. We'll give you the lowdown on the blockbuster debuts, but first today's news quiz. In which state was Christmas once banned, Ohio, Utah, Hawaii, Massachusetts, the answer coming up?

(COMMERCIAL BREAK)

UNIDENTIFIED MALES: Happy holidays from Kabul Afghanistan.

UNIDENTIFIED MALE: Hello, my name is (UNINTELLIGIBLE). I'm from (UNINTELLIGIBLE) Texas. I'm a helicopter mechanic (UNINTELLIGIBLE) and I'm working at Bagram Airfield in Afghanistan and I'd like to wish everybody a Merry Christmas back in the states.

UNIDENTIFIED MALE: I'm (UNINTELLIGIBLE) from Bagram Air Force Base and I just want to wish my wife a Merry Christmas.

UNIDENTIFIED MALE: Hey you all back in (UNINTELLIGIBLE) Georgia. I'm PFC James Mosely (ph). I just want to say a Merry Christmas to my grandma and grandpa and all my family and friends and I'll be home soon. Peace.

BLITZER: We'd like to wish you a Merry Christmas and a Happy New Year as well. Meanwhile, it's a war of words for now. The United States and North Korea are trading warnings over the north's decision to restart its nuclear program but today the warnings from Pyongyang took on a chilling new tone.

(BEGIN VIDEOTAPE)

BLITZER (voice over): The Bush administration says it doesn't want to see the nuclear crisis with North Korea escalate but the North Koreans apparently see things differently. Their rhetoric is getting more ominous. One state run newspaper warns that the U.S. refusal to negotiate with North Korea will lead to "uncontrollable consequences."

In addition, the North Korean defense minister says that if the U.S. were to provoke a nuclear war, the North Korean Army would "mete out determined an merciless punishment to the U.S. imperialist aggressors."

UNINTELLIGIBLE MALE: This is a regime which is collapsing, failing, regime internally. It's crying out for attention and assistance and it's unpredictable and so we've got to be very careful in managing this situation.

BLITZER: But the Bush administration is refusing to negotiate with North Korea until it goes back to its earlier pledge to stop developing a bomb. When the North Koreans broke that pledge, the Bush administration retaliated by cutting off earlier promised fuel supplies. One source of immediate concern, the U.S. still has nearly 40,000 troops along the demilitarized zone separating North and South Korea only miles from a million heavily armed North Korean troops.

At the heart of the problem, this nuclear reactor complex capable of producing weapons grade plutonium seen in this recent satellite photo. North Korea has alarmed the world by beginning to remove International Atomic Energy Agency monitoring equipment.

In Seoul, the South Korean cabinet was told that North Korea is moving nuclear fuel rods with enough plutonium to build two warheads. The North Koreans already have tested long range ballistic missiles capable of delivering a nuclear warhead and they're working on longer range missiles that potentially could hit the U.S. mainland.

Secretary of State Colin Powell has been on the phone with his counterparts in Japan, Russia, China, South Korea, Britain, France, and other major capitals trying to diffuse the crisis. But the clock is ticking. Some U.S. analysts fear the North Koreans may be only months away from developing a bomb. Others fear they already may have one or two.

(END VIDEOTAPE)

BLITZER (on camera): The stakes obviously are enormous, not only for the United States but indeed for the entire world. Patrolling Iraq's no-fly zone is a very dangerous job and U.S. pilots risk their lives every single day. Coming up, we'll have an exclusive report on the challenges they face. And later, another murder linked to the Baton Rouge, Louisiana serial killer. We'll have the latest on that story and talk to a local reporter about the search for the killer. Stay with us.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: I have a special request from you Santa. As I can't make it home for Christmas but I got a simple request. I need a message to go out to my girlfriend, a little stocking stuffer. Can you help me out with that?

SANTA: Sure, what would you like to say?

UNIDENTIFIED MALE: I'd like to tell my girlfriend, you know, we've been together for 15 great months, you know, the best part of my life ever. I love you and I always will Christie. Christie Rickelhoff, will you marry me? ALESSIO VINCI, CNN CORRESPONDENT: Christie if you can hear this message, sergeant please come here with me. Christie, did you hear what (UNINTELLIGIBLE)?

UNIDENTIFIED FEMALE: Yes, I did.

VINCI: OK, Christie can you hear us?

UNIDENTIFIED FEMALE: Yes.

VINCI: Did you hear from Jason asked you?

UNIDENTIFIED FEMALE: I did. Yes, I will.

VINCI: I didn't hear your answer though.

UNIDENTIFIED FEMALE: I said, yes I will.

VINCI: She said yes. All right, congratulations. When are you going to make it back home?

UNIDENTIFIED MALE: That's to be determined.

VINCI: That's to be determined, OK. Well, we got a very excited Jason here. Christie congratulations also to you.

BLITZER: Thanks to Alessio Vinci, our reporter in Kuwait for making that possible. We saw that live on CNN during our Noon Eastern Showdown Iraq. Congratulations of course to the two lovebirds as well.

And, in a Christmas message of his own read on state television, Iraqi President Saddam Hussein says U.N. inspectors will prove that his nation has no weapons of mass destruction. The Iraqi leader says that if the inspectors conduct themselves fairly, the results of the weapons hunt will come as "a great shock to the U.S. and will expose what he calls American lies and deceit.

As the inspectors hunt for weapons on the ground, U.S. pilots continue to patrol the no-fly zones over Iraq. Baghdad is doing its best to make that a very risky business as I found out during an exclusive visit with U.S. pilots in Saudi Arabia.

(BEGIN VIDEOTAPE)

BLITZER (voice over): When the Iraqis shot down an unmanned U.S. Predator drone over southern Iraq this week, the message was clear to U.S. fighter pilots who fly over the area on an almost daily basis.

The real Iraqi goal is to shoot down an American plane with a pilot or two onboard. This is how U.S. Air Force Brigadier General Dale Waters put it to me the other day when I met with him at the Prince Sultan Air Base in Saudi Arabia.

BRIG. GEN. DALE WATERS, US AIR FORCE: You know they've been trying for ten years to shoot down an airplane. I think we've been very lucky we haven't lost one. We keep a lot of great air crews up there doing the mission and we have good intelligence, so I think we do it smart but it's never zero risk.

BLITZER: That risk was dramatically underscored earlier this month. Two U.S. fighter jets took off from the Prince Sultan Air Base that morning for what they thought would be a routine patrol over the so-called no-fly zone in southern Iraq. But as they entered Iraqi airspace they saw something unusual. An Iraqi jet fighter had taken off from a base outside Baghdad and was heading toward the no-fly zone as well.

The U.S. planes gave chase. The Iraqi plane then already in the no-fly zone headed toward an area where U.S. reconnaissance had earlier detected Iraqi SAM or surface-to-air missile batteries. It was what U.S. pilots call a SAM trap. The Iraqi strategy was to lure the U.S. planes over the SAMs where they would be vulnerable. In order to avoid getting shot down, the U.S. planes headed back to Prince Sultan. The Iraqi plane flew back to its base as well.

CAPT. ROB NOVOTNY, U.S. AIR FORCE: We're fairly well trained. We've been doing this for 12 years and we're used to their games. We're used to their attempts to lure us in there and we know pretty much well in advance what they're trying to do.

BLITZER: U.S. Air Force Captain Rob Novotny was one of those pilots involved in the SAM trap. So they're trying to get you to fly over an area where they think they have a good shot of shooting you down?

NOVOTNY: I would say they're trying to get us in a position where some of their surface-to-air threats can become more of a factor.

BLITZER: But you knew that going into it?

NOVOTNY: Yes, we did.

BLITZER: So, you just make a U-turn and go back?

NOVOTNY: Well, we avoided those areas, absolutely.

BLITZER: U.S. Air Force Major Paul Matier was also one of the pilots involved in the incident. What was it like to actually see an Iraqi jet in the sky which is a highly unusual development.

MATIER: It is. It was exciting. I have to tell you I thought I'd be more nervous when it happened but I wasn't. The training took over when it happened. We had good communications from some of our other assets up there that the guy was flying and we did what we needed to do.

BLITZER: Major Matier sums it up this way.

MATIER: They're shooting real bullets. They're not shooting BB guns at us. There's real bullets. There's real missiles. We have to be ready in any event to deal with that kind of threat. Right now that we're here, this is the only place in the world where American forces are being shot at on a regular basis.

BLITZER: For these U.S. pilots, the war against Iraq has already begun.

(END VIDEOTAPE)

BLITZER (on camera): And it doesn't look like it's going to wind down anytime soon. When we come back, serial killer strikes again, why haven't police been able to catch the psychopath stocking Louisiana women? The latest on the manhunt, that and much more, plus Christmas in Bethlehem, we'll go live to Manger Square in the Holy Land where Christmas mass is getting underway.

And hot holiday movies find out what's steaming up theaters tomorrow after your holiday meal. Mr. (UNINTELLIGIBLE) joins us live but first a look at news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice over): Iranian President Mohammed Khatami says he's looking forward to warmer relations with Pakistan. The two neighbors have had their differences in the past but in a news conference concluding a visit to Pakistan, Khatami said he sees a bright future.

Chinese dissident Shu Wan Lee (ph) was freed from prison and put on a flight to the United States. The release came a week after the U.S. had appealed for the release of Shu and other political prisoners.

Seventeen inmates are dead and at least 30 more have serious injuries after a prison riot in Guatemala. The violence began amid complaints about prison food and visiting hours.

There's going to be legal fallout from October's Moscow theater siege. A Russian court has agreed to hear lawsuits against the city of Moscow seeking millions of dollars in compensation for families of victims and survivors. One hundred twenty-nine people died after Russian Special Forces stormed the theater ending a siege by Chechan terrorists.

Not tonight, there's a report from Sudan on an effort to end the civil war there. London's "Daily Telegraph" reports that women are withholding sex in an effort to get their men to stop fighting. It's an unusual idea but not a new one. It harkens back to the plot of Liz Estrada, a drama written in Ancient Greece.

'Tis the season, a Moscow museum is showing off Russian Christmas tree ornaments. The 2,500 pieces span 70 years. Ironically, it was assembled by an American who lives in Moscow and became fascinated with Russian ornaments just five years ago, and that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK) BLITZER: Welcome back to CNN. I'm Wolf Blitzer. Coming up, John Walsh of "America's Most Wanted," he turned to CNN to help catch a child killer. He joins us next with some dramatic results, but first let's look at some other stories making news right now in our CNN news alert.

(NEWSBREAK)

BLITZER: A Maryland man sought in the murder of his girlfriend's eight-year-old daughter is in custody in Alabama after the case was profiled on "America's Most Wanted" and once again on CNN. Jamal Abeokuto was arrested this morning after barricading himself in a motel room in Birmingham. This capture came shortly after the case was profiled last night on CNN's "LARRY KING LIVE." "America's Most Wanted" host John Walsh was on the show last night with Larry King and John's joining us now live on the phone to tell us about this case. John, tell us what happened.

JOHN WALSH, "AMERICA'S MOST WANTED" (via telephone): Well, Wolf, we were looking for this guy. He is alleged to have murdered his 8- year-old girlfriend's daughter, beautiful little Marciana Ringo (ph) and left her body in a field, slit her throat and he became the subject of a big man hunt in Maryland. He was on "America's Most Wanted" on Saturday night.

We got several tips he might have fled to Alabama. Baltimore police were stumped. On Monday it went on "LARRY KING" on CNN and Larry has small children just like I have, an 8-year-old son. And I said, Larry, can we get this guy on? He could be anywhere. We need to find him before he hurts some body else. Larry said, Absolutely and Larry's executive producer and producers put Abeokuto's picture and his description on "LARRY KING" last night and about three hours later we got some more information and tips that he was in a motel in Birmingham and he was apprehended and it was just incredible.

We just talked to Marciana Ringo's mom, Milagro, and she said even though this is the worst Christmas, the murder of her daughter, but the best Christmas present is that this low life has been captured in Birmingham. So, you know, my hat's off to Larry for fitting it in the show last night because it closed the door on this guy.

BLITZER: Our hats are off, of course, to you as well, John, and your entire team.

Who specifically made the call? How were they watching? What did they say when they made that call, which is always, obviously, a courageous thing for a viewer to do?

WALSH: Well, we don't know because so many people call "America's Most Wanted" hotline anonymously. We got several tips on Saturday night that he was in the Birmingham area but we didn't know exactly where.

We got more tips last night after Larry allowed me to profile Abeokuto on the show. We got several anonymous tips that he was in a motel. He barricaded himself in the motel and the FBI took him down. So we don't know who called, but I always say it, whoever they are, God bless them for having the courage to make that call. I always say, Remember you can remain anonymous, police don't trace the calls. But Wolf, several people watching Saturday night and several people last night pinpointed the exact motel where this low life was and we thank God they had the guts to make that call.

BLITZER: We do as well. John, what is this, 736? How many bad guys have you caught thanks to your work?

WALSH: Well, you're exactly right. This makes 736 people. And It's not just my work and the wonderful staff of "America's Most Wanted." It's the American public. We've caught people in 31 countries. And, of course, last night with the help of Larry and CNN, we closed the door on this guy.

But you're right, 736 guys, 15 off of the FBI's "10 Most Wanted" over the years. So, it's been the public that has made the difference in catching these guys.

BLITZER: John Walsh, a good friend. Also a god friend of CNN's. Thanks for all of the good work that you do. We'll be watching all of your programs as well. John Walsh of "America's Most Wanted."

Meanwhile, there's another death that's been linked to a serial killer in Louisiana. Police say a Lafayette woman who was found beaten to death last month is indeed the killer's fourth confirmed victim. The three other victims, all of them women, were from Baton Rouge.

The latest from Chuck Huebner with our affiliate, KLFY.

(BEGIN VIDEOTAPE)

CHUCK HUEBNER, KLFY REPORTER (voice-over): Officials with the Acadiana crime lab say the man who killed 23-year-old Trinicia Denee Colomb is also responsible for the death of three Baton Rouge women: 41-year-old Gina Green, 22-year-old Charlotte Pace and 44-year-old Pam Kinamore.

Ray Wickenheiser is with the Acadiana crime lab. He says the same DNA has been found at all four crime scenes.

RAY WICKENHEISER, ACADIANA CRIME LAB: We can develop profiles from a wide variety of biological items occurring at crime scenes. That's what was done in this case.

In addition to the DNA evidence, Lafayette sheriff's detectives claim to have a witness who may have seen the serial killer's vehicle.

On November 21, the same day Colomb disappeared, a witness claims to have seen a white, late model, stepside Chevy pickup truck parked directly behind Colomb's black Mazda, on a gravel road near the Academy of the Sacred Heart. That is the same type of truck reportedly used in July by the serial killer to dispose of Kinimore's body under the Whiskey Bay Bridge.

Colomb's body was found on November 24 by a hunter, who was walking in a wooded area no far from Mill Street in Scott.

DET. ALLEN VENABLE, LAFAYETTE PARISH SHERIFF'S OFFICE: We're asking the public to assist us by trying to recall any events which may identify that vehicle in the area of Grandpatill (ph) on November the 21st, or at any time after that up until her body was discovered on the 24th of November on Sunday on (UNINTELLIGIBLE) near Mill Street.

No matter how insignificant you think the information may be, it could be very important to either our investigation or to that of the ones be being conducted by the task force in Baton Rouge.

(END VIDEOTAPE)

BLITZER: That report from affiliate reporter Chuck Huebner of KLFY. Thanks very much, Chuck, for that report.

With us on the phone now to talk a little but more about the serial killer's latest victim, reporter Marsha Sills of "The Daily Advertiser" in Lafayette. Are you getting any sense that they're getting closer to finding this killer, Marsha?

MARSHA SILLS, THE DAILY ADVERTISER: It's very encouraging now that the task force is now working with the sheriff's office and that they have confirmed that there is a match with Colomb. So it's kind of given new information to the case in Baton Rouge.

BLITZER: What is the latest information you have uncovered in your reporting?

SILLS: Today there really has been no information. The sheriff's office here has received more tips as far as information on the case, although nothing has led to any substantial leads so far.

BLITZER: Is there -- the way these four women were killed, as far as you know, were they identically killed?

SILLS: No, they were not. The first victim, the first known victim was strangled in her apartment. The second was stabbed and Kinimore was abducted from her home and her throw was slit.

With Colomb, they told us her death was caused by blunt trauma to the head. And that's all they've released so far.

BLITZER: Like you in Louisiana, all of us around the country have been watching this very sad story unfold, this serial killer.

Are people coping at this time of the year especially, around Christmas, are they scared to go out of their homes, the women especially?

SILLS: There's more of an awareness, of course, especially since Baton Rouge was able to link the deaths of the three women to a serial killer. Since then the sheriff's office here offers a free course, and we're about 50 miles southeast from Baton Rouge. And even after the link was made, women here responded by attending the class, they had to hold extra courses. It's usually held once a month. And the sheriff's office had to offer more classes to keep up with the influx of women interested in learning how to defend themselves. So...

BLITZER: All right. I was going to say, Marsha Sills, thanks for spending a few moments with us from "The Daily Advertiser" in Lafayette. We'll continue to cover this story as you will as well.

Good luck to all the people in Louisiana searching for this serial killer.

The mass near Manger Square in the Holy Land is happening as I speak right now. We'll take you live to the service in Bethlehem.

Also, after your presents are unwrapped, you can head to the movies, of course. There are a lot of pics on the big screen in the coming days. We'll tell you about them, straight ahead.

(COMMERCIAL BREAK)

BLITZER: Here's a look at how people around the world are already celebrating Christmas. Many Australians marked the holiday much like Americans by decorating their homes with lights.

There's a festive feeling on the streets of India's largest cities. Some stores in this largely Hindu country offer as many Christmas trinkets as any American mall.

And it's a similar scene in Baghdad, with this store is brightly decorated despite the dark cloud of war hanging over Iraq.

After recent violence, Israel last month reoccupied the West Bank town of Bethlehem. The troops have pulled back for the holiday now, but in the traditional birth place of Jesus it's been a dreary Christmas.

Let's go live to CNN's Kelly Wallace. She's joining us from Manger Square in Bethlehem.

Give as little flavor on this Christmas Eve. What's going on, Kelly?

KELLY WALLACE, CNN CORRESPONDENT: Well, Wolf, it's a cold, wet night here in Bethlehem, and it is matching the mood of many Palestinian Christians here who say this is really a Christmas they would like to forget due to Israel's continued military presence in the city.

The traditional midnight mass celebration, though, beginning just about 30 minutes ago. The church packed with parishioners there. The religious ceremonies continuing even as Bethlehem's mayor has called for no holiday decorations in Manger Square, no holiday celebrations to protest the Israeli occupation and for the second year in a row, Yasser Arafat's seat inside that mass left empty and that is because Israel has banned the Palestinian leader from traveling here.

He is a practicing Muslim, but he has come here in years past. Israel, though, not allowing him to come because Israelis say he has not done enough to crack down on terror.

So inside the church and outside on the streets in this, the holy city of Bethlehem, religious ceremony taking a bit of a back seat to politics because Palestinian Christians and Palestinian Muslims were protesting throughout the day. Protesting against the Israeli presence, making it very clear that these Palestinian Christians and Muslims are not satisfied with Israel's decision to pull its troops away from Manger Square in the center of the city, but to remain on the outskirts of Bethlehem.

The Israelis, for their part, say they would like to take their troops completely out of Bethlehem. They say they only moved in a few weeks ago after a November 21 bus bombing, a suicide bombing in Jerusalem that claimed the lives of 11 Israelis. That bomber was from Bethlehem.

The Israelis, as you know, face tremendous international pressure to pull their troops away from Manger Square and to allow Palestinian Christians from throughout the West Bank and the Gaza strip to travel here to Bethlehem. But Palestinian sources are telling CNN that many Christians in other West Bank towns and in the Gaza strip were unable to obtain the special permits the Israelis were requiring here to travel here for Christmas services -- Wolf.

BLITZER: We just saw some live pictures, Kelly. I take it midnight mass, it's now past midnight in Bethlehem, midnight mass is continuing at the churches in Bethlehem?

WALLACE: That is correct. It started about right at the stroke of midnight. It will continue until a little well after 1:00 a.m. A colleague who is inside the church reporting that it is a packed crowd in there, inside, for midnight mass.

Wolf, you know, this is normally the most important night, the busiest, the holiest, the most joyous night for people in this city, but many Palestinian Christians say it's really very different. Many Christians from around the world, many tourists it seems have stayed away -- Wolf.

BLITZER: Kelly Wallace in Bethlehem, thanks very much for that report. I do indeed remember earlier Christmas Eves in Bethlehem covering what was a very joyous occasion, a very happy time for Palestinians and a lot of tourists who used to come to Bethlehem on Christmas Eve. Obviously they're staying away in big numbers right now. Kelly Wallace in Bethlehem. Thanks very much.

A rough economy is taking a toll on the nation's charities, many of which report donations down sharply this year. Those that feed the poor are among the hardest hit. CNN's Rusty Dornin reports on their season of need.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: If it's not done enough for people, find some that's done.

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Finding some to feed 3,000 needy for the annual Christmas Eve dinner was not easy for Reverend Cecil Williams of Glide Memorial Church in San Francisco. Donations are down 45 percent.

This year the House of Prime Rib restaurant donated 2,000 pounds of prime rib.

(on camera): What would you have done if you hadn't gotten all this food donated at the last minute?

REV. CECIL WILLIAMS, GLIDE MEMORIAL CHURCH: Well if we hadn't had it donated, I tell you, what we'd be standing outside saying help, help.

DORNIN (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. I actually had a job for a few months and then 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 7 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: There's a tremendous hunger for employment. People come to us constantly offering to volunteer, are we hiring, can we help them.

DORNIN: Some shelves are empty at the San Francisco food bank. Donation there are down 40 percent, and they're list of who needs help is growing.

PAUL ASH, SAN FRANCISCO FOOD BANK: A third of the people said in the last six months someone in their household had either lost their job or had their hours reduced. So we are seeing a lot of people who were working or recently working who need food assistance.

DORNIN: It means spreading the who will day food baskets a little thinner and sometimes a little more reassurance for those in need.

WILLIAMS: Merry Christmas to you. Hey, merry Christmas, brother.

DORNIN: Rusty Dornin, CNN, San Francisco.

(END VIDEOTAPE)

BLITZER: Five golden rings and a partridge in a pear tree. Sounds nice. But in this tight economy, it might be difficult for your true love to afford those gifts. Coming up, we'll do the actual math to find out value the "12 Days of Christmas" presents.

And later, Santa's already well on his way for the evening. We're tracking him on the official Web site when we return.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BLITZER (voice-over): Earlier we asked in which state was Christmas once banned? The answer, Massachusetts. The Puritans frowned on feasting, drinking and dancing and didn't consider Christmas a true religious holiday. The penalty for breaking the law five shillings for every offense.

(END VIDEO CLIP)

BLITZER: Five shillings. I guess that was a lot of money in those days.

This is of course one of the busiest times of the year for the movie industry with dozens of movies releasing right now. Joining me from Los Angeles, some the highlights, Russ Leatherman, also known as Mr. Moviefone. Thanks so much for joining us, Russ.

Let's talk about some of the movies. "Gangs of New York," it's a big movie out there, how's it doing?

RUSS LEATHERMAN, "MR. MOVIEFONE": It's doing very well. This is such a great time of year for movies. You not only have the big blockbusters but you have some of the smaller movies.

And "Gangs of New York" is just a movie you just have to go see. It's Scorsese's movie. Leonardo DiCaprio does a great job. Daniel Day-Lewis is fantastic in this movie. It's very gritty, it's very rough but gives us kind of a different perspective of how things started in New York and what happened to the immigrants and who they were. I think it's a fascinating movie that everybody should go try and see.

BLITZER: Good advice from Russ. What about "Chicago?"

LEATHERMAN: "Chicago" may be my favorite movie of the holiday season. It's just a fantastic time at the movies. Katherine Zeta Jones, was terrific. You don't know if they're actors singing and dancing or singers and dancers who are acting. So I think it's a great movie. Richard Gere is also in the movie, and even after the first 10, 15 minute of Richard Gere you start to appreciate him. So I really like this movie

BLITZER: Are you telling me we're going to hear Richard Gere actually singing, Russ?

LEATHERMAN: I know, it sounds painful. Like I said for the first 20 minutes you go I can't believe this is happening to me. But he's actually very good for the role and he comes through. He won't ruin it for you, I promise.

BLITZER: All right, what about "Confessions of a Dangerous Mind"? An important new movie as well.

LEATHERMAN: This was directed as George Clooney. It stars Sam Rockwell and he plays Chuck Barris, the game show guy, who did the Gong Show, the Newly Wed Game. Just a kind of crazy, wacky dude who believes he was a CIA operative. You never really know whether he was or whether he wasn't. But it's a fascinating case study and Clooney did a good job directing it. It's another fun movie to go see.

BLITZER: And movie that coming I believe tomorrow, "Catch Me if You Can." This is going to be a hot movie.

LEATHERMAN: Well, it is. It's of course Steven Spielberg. And this is Leo's second movie of the season. Leo DiCaprio that is, and he stars with Tom Hanks. It's a really fun caper movie. It's one of those movies you go out, you're glad you spent a couple hours. It's pretty light hearted but just a lot of fun. This is one of those movies where if you want to grab Aunt Mabel to quiet her down for a couple hours, this is the perfect movie.

BLITZER: And the con man who Leo DiCaprio plays will be on this program by the way tomorrow, 24 hours from right now.

Russ Leatherman, as usual, thank you for joining us.

LEATHERMAN: Thanks, Wolf, it was fun. I'll see you next time and enjoy the movies there are some great ones out there.

BLITZER: We will. By the way merry Christmas and happy New Year to you as well.

Every year experts at a Pittsburgh bank go through the lyrics of the song the "The 12 Days of Christmas," and calculates the prices of the gifts it describes. This year there is good news. Because of a sharp unexplained drop in the price of swans, the total price plunged almost $1,200. Get this 14,558.06.

Kyra Phillips has these important details.

(BEGIN VIDEOTAPE)

KYRA PHILLIPS, CNN CORRESPONDENT (voice-over): You probably know the song but do you know the prices? OK, bear with me. For a partridge in a pear tree, you don't need just a partridge, you need a pear tree. The partridge would set you back only $15, but the pear tree is $87.50. Turtle doves are more expensive. Two of them will cost $58. Three French hens? Is their nationality all that important? It would cost $15 or if you prefer, 15 Euros.

Next, four calling birds. Those birds must be calling for their agents because they're fetching a pretty good price -- $316. And if you visited a jewelry store lately, you may know the price of gold rings is up a little more this year. Five of them will cost $382.50. Six geese a-laying, 150. No word what geese get when they are not a- laying. Seven swans a-swimming is this year's biggest bargains. The price of swimming swans has plunged 40 percent to just $2,100. Ouch.

Eight maids a-milking being are cheap at $41.20 but you could just go to the movies and see J.Lo. as a maid. But nine ladies dancing, a big ticket item, $4,107.66. For some reason, ten lords a- leaping are cheaper at 3,921.44. Plenty lords in the British Parliament but how do you make them leap 1234? Eleven pipers piping. That's 1,614.60. And 12 drummers drumming, that's $1,749.15. Or just do what every all American does on Christmas, watch the bowl games and don't fall asleep at halftime, the drumming is free.

Kyra Phillips, CNN.

(END VIDEOTAPE)

BLITZER: Thank you very much, Kyra. The price of swans, good time to run out there right now, buy some swans. Very important information we provide here on this program.

Time is running out for your turn to weigh in on our Web question of the day. How much are you spending this Christmas compared to last year? The same, more, or less? Log on to CNN.com/wolf.

(COMMERCIAL BREAK)

BLITZER: Pope John Paul II at St. Peters Basilica at the Vatican getting ready for midnight Mass. Getting ready for this holy night, Christmas Eve.

Welcome back. It's not all pray, though. Our picture of the day on this Christmas Eve offers an interesting look at one of NORAD's most important missions of the year, tracking Santa Claus. Right now according NORAD official Web site, Santa is flying high, look at this, right over Europe. You of course can track Santa as well. Go to www.noradsanta.org.

Now, remember we've been asking you this, how much are you spending this Christmas compared to last? Twenty-three percent the same, 23 percent more, 54 percent less. This is not a scientific poll. That's all the time we have right now.

I'm Wolf Blitzer in Washington wishing all our viewers around the world a very merry Christmas.

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





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