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CNN Wolf Blitzer Reports

New Year Also Marks New Safety Procedures; North Korea and Iraq's Futures Still Uncertain

Aired December 31, 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.


(BEGIN VIDEOTAPE)
MILES O'BRIEN, CNN ANCHOR (voice-over): Now, on WOLF BLITZER REPORTS, New Year's hope and New Year's fear.

MAYOR MICHAEL BLOOMBERG, NEW YORK: Better to be safe than sorry.

O'BRIEN: On two fronts, trouble is brewing for the year ahead. Strong causes with (UNINTELLIGIBLE).

The president visits a Crawford coffee shop confident diplomacy will work in North Korea, but as for Iraq...

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: An attack from Saddam Hussein or a surrogate of Saddam Hussein would cripple our economy.

O'BRIEN: Al Qaeda's navy, a fleet of freighters with a deadly cargo.

In the Bayou, a DNA dragnet for a serial killer, and an offer of a free funeral, just sign a pledge to drink and drive on New Year's Eve.

(END VIDEOTAPE)

O'BRIEN: It is New Year's Eve, 2002. I'm Miles O'Brien in for Wolf Blitzer. Celebration and security, half a million people are expected to watch the ball drop in New York's Times Square tonight, but from snipers to the bomb squad, police are in the vanguard as the city takes no chances. CNN's Jason Carroll is on the scene. He joins us live with the latest. Jason, how tight is the security?

JASON CARROLL, CNN CORRESPONDENT: Very tight, Miles, but you also know New York City. This is a city that is used to hosting large events. Tonight is no exception. There are roughly 6,000 police officers already out on patrol. That includes undercover officers as well. In terms of a security plan, we can give you some details in terms of what is already in effect.

Bomb squads are out in force as well as dogs from the city's K-9 teams. They will be conducting random sweeps in Times Square as well as throughout the city's transit system. The city's Archangel package has been deployed. That's a group of officers from emergency services, the bomb squad, K-9, as well as hazardous materials unit. They will all be mobilized to respond in an event of an emergency.

Manhole covers, and you know about manhole covers. There are hundreds of them in the city. They have all been sealed in the immediate area. The mailboxes in Times Square have been removed as well as the trash cans for security reasons. Counterterrorism snipers have been stationed on buildings throughout Times Square in the event of some sort of an emergency.

Spectators entering the area will have to go through random checkpoints that have been set up. They'll have to be searched. No bags will be allowed. You will not be able to carry backpacks or anything of the sort into Times Square. Also, it's not just about security on the ground but in the air as well.

The FAA has restricted flights above the Statue of Liberty, as well as Midtown Manhattan. That went into effect at 4:00 p.m. Eastern time. That will stay in effect until 4:00 a.m. Eastern time. The city's police commissioner says it's all in an effort to keep the celebration as safe as possible -- Miles.

O'BRIEN: Well, I got to tell you, Jason, listening to all that it makes me want to stay home. What's your sense of it there, are people still going to turn out and what's the mood on the street?

CARROLL: Well, I know that you might want to stay home, Miles, but just take a look right over here to the side. You can see that a lot of people decided to come on out. There are thousands of people who already started to pack themselves into Times Square and we're still several hours away from the ball being dropped. Obviously a lot of people willing to come out, take part in the festivities, feeling that New York City will be able to safely host this event like it's hosted many others -- Miles.

O'BRIEN: All right, we hope for the best and hope for a good celebration there, a little moment in history there. Jason Carroll in Times Square we'll see you later. For a look at how the rest of America will party, we begin with America's party, the New Year's pageant in Las Vegas.

The city is lit up every night of course but more than a quarter million people are expected to turn out for a fireworks display over the strip tonight. You can bet it will include more than 65,000 pyrotechnic effects from a dozen rooftop locations. Odds are it will be a fun night in Sin City.

In Seattle, they'll be gathering around the Space Needle, of course, where the celebration is capped by a midnight fireworks display. Eight thousand pieces of fireworks will be set off in an eight-minute span. A million people are expected to greet the New Year during Boston's First Night celebration. There will be a parade and poetry readings, ice sculptures and two sets of fireworks, early and late.

And now to "Our Web Question of the Day," how are you ringing in the New Year? Are you going to a party, staying home with family, or will you be asleep like me? Vote at cnn.com/wolf. We'll have the results later in this broadcast, and while you're there we would like to hear from you. Send us your comments. We'll try to read some of them at the end of the program, time permitting, and you can also read my daily online column, sitting in for Wolf here, at cnn.com/wolf.

And, a special programming note for you. CNN will take you live to New York's Times Square tonight for New Year's Eve celebrations. Our special hosted by Anderson Cooper begins at 11:30 p.m. Eastern time.

Thousands of South Koreans used the New Year to stage anti- American protests. They're unhappy about the large U.S. military presence in their country and they claim U.S. policies are hurting the prospects for reunification with the north. CNN's Rebecca MacKinnon is in Seoul, South Korea. She joins us with more.

REBECCA MACKINNON, CNN CORRESPONDENT: Thanks, Miles. Well, South Korea entering 2003 not only with the usual New Year's revelry but also with a very large anti-U.S. demonstration. Estimates are that the number of people on the street protesting against the U.S. troop presence in South Korea amounted to roughly 20,000 people.

Now, the demonstrators were protesting in part over the road accident that occurred this summer involving a U.S. military vehicle which crushed two South Korean teenagers. They were acquitted in a U.S. military court and there have been regular demonstrations in Seoul since then.

Now, the demonstrators also very critical of U.S. policy toward North Korea, calling it too hard line and critical general of U.S. foreign policy with placards reading such slogans as "Don't Attack Iraq."

Now, the feelings here are very complex in South Korea. It's not that North Korea is seen as the good guy but there is a feeling on the street here that the United States is aggravating the situation by refusing to have any form of dialog with the North Koreans. The South Korean government has what's called the Sunshine Policy of engaging North Korea.

The new president-elect Roh Moo-hyun intends to continue that policy of engaging North Korea and he did say today that the United States should not go forward with any policy toward North Korea without first consulting South Korea, because after all if any conflict were to erupt, it's the South Korean people who would bear the brunt of the consequences, back to you Miles.

O'BRIEN: Thank you Rebecca.

The New Year came to Iraq a little over an hour ago. Iraqis honked their horns and danced in the street but behind the celebration quite a bit of apprehension of course, 2003 could bring war. CNN's Rym Brahimi has the latest from Baghdad.

RYM BRAHIMI, CNN CORRESPONDENT: Miles, the U.N. weapons inspectors here on the ground have not only been working until the very last day of this year, they also plan to work on the very first day of 2003. At least seven sites were visited today, Miles. Two biological teams went out, two teams of missile experts, and then a chemical team went out to a research center on petroleum that's monitored by the oil ministry here, and then you had a couple of other teams, a nuclear expert team and a team of experts in all four different fields.

Now there's a lot of work for them probably intensifying the case ahead of that January 27 deadline that they have to meet. January 27, Miles, is as you know when they have to present a report to the U.N. Security Council, a report that by then will have to mention their 60 days of inspection activities, back to you Miles.

O'BRIEN: Thank you Rym Brahimi in Baghdad.

President Bush is spending the New Year at his ranch near Crawford, Texas. This afternoon he went into town, talked to reporters about the conflicts with Iraq and North Korea. CNN White House Correspondent Suzanne Malveaux live in Crawford with details on a trip to the coffee shop that was rather eventful, right, Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, that's right. He was at a coffee shop in Crawford early this afternoon. He answered a number of questions but he did make the point that when it comes to North Korea, this is not about a military showdown but rather a diplomatic one. He says he is still hopeful that a peaceful resolution is possible through diplomacy but that he recognized it will take the cooperation of North Korea's neighbors.

However, when it comes to Iraq's Saddam Hussein, not confident saying that Saddam Hussein has a history of defying the will of the international community. Now for the first time President Bush talked about not just the human cost of a possible war with Iraq but also the possible economic cost as well. His former economic advisor, Larry Lindsey, estimating it would be about $200 billion, but his budget director emphasizing that perhaps it would be some $50 billion.

This is a very sensitive situation, topic for the White House because critics have said the U.S. can not afford to go to war with Iraq at the same time while supporting Bush's proposed tax cuts but the president made it very clear. He says that the United States, the economy can not afford to be hit by a weapon of mass destruction from Iraq and that's why he's doing everything in his power to avoid it.

(BEGIN VIDEO CLIP)

BUSH: An attack from Saddam Hussein or a surrogate of Saddam Hussein would cripple our economy. My biggest job and most important job is to protect the security of the American people and I'm going to do that, and I have made the case and will continue to make the case that Saddam Hussein, a Saddam Hussein with weapons of mass destruction is a threat to the security of the American people.

(END VIDEO CLIP)

MALVEAUX: Now, while military preparations are in full force for a possible conflict with Iraq, President Bush saying one of his New Year's resolutions is to resolve these conflicts peacefully -- Miles.

O'BRIEN: Those are good resolutions indeed, Suzanne Malveaux near Crawford, Texas appreciate it.

Ever since the 9/11 attacks there's been plenty of tension during every holiday. That includes this New Year's Eve but should our nerves really be on edge? CNN's David Mattingly looks at holiday anxiety.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): Heightened security, strong police presence, the public asked to remain alert; all common traits of every major American holiday since 9/11. But this year festivities coincide with a widely publicized manhunt for five men who may have illegally entered the U.S. from Canada, adding to safety concerns as the hours count down to the ceremonial ball drop in New York's Times Square.

ERIC MARGOLIS, JOURNALIST, AUTHOR: Well, these five mysterious men on the lamb who I believe to be Pakistanis is certainly making people nervous. We've got the annual celebration jitters worrying that there might be another terrorist attack mirroring the one that was attempted, the unsuccessful one in 1999.

MATTINGLY: That attempt was a millennium airport bombing planned for Los Angeles' LAX. It was thwarted with the December, 1999 arrest of Algerian Amed Resam (ph) who was intercepted in Washington State crossing the Canadian border with bomb-making materials. The fact that New Year's is the only holiday in the U.S. now associated with a known terrorist plot is not lost on this year's revelers.

UNIDENTIFIED MALE: Just too many people and too many things going on. You can't stop anybody from committing a heinous act.

UNIDENTIFIED FEMALE: This is the fourth year I've come. Nothing's happened. Everyone was freaked out with the millennium, nothing happened. After 9/11, nothing happened. I'm not scared.

MATTINGLY: If any holiday plot to do harm does exist it would be inconsistent with known al Qaeda attacks. The 1998 embassy bombings coincided with the eighth anniversary of U.S. troops landing in Saudi Arabia prior to the Gulf War. Those bombings remain the only known attacks with any symbolic timing.

MARGOLIS: It's been a hallmark of at least the al Qaeda to attack when it's not being expected where it's not being expected. So, there's no guarantee that if an attack comes it will be on an American holiday. It may come, you know, someplace far away where our eyes are not gazing.

MATTINGLY: Even so, while most eyes tonight are on clocks and televisions, Times Square celebrants will be under the watchful eye of uniformed police, undercover officers, and rooftop snipers as the final moments of 2002 tick away. David Mattingly CNN.

(END VIDEOTAPE)

O'BRIEN: In many countries, of course, it's already 2003. Here's a firecracker of a look around the world.

(BEGIN VIDEOTAPE)

O'BRIEN (voice-over): Australia was one of the first countries to ring in the New Year. Hundreds of thousands of spectators ooh-ed and awed at a 15-minutes fireworks display at Sydney's Harbor Bridge, and it was the image of a dog carrying an olive branch and then the word peace.

2002 concluded in spectacular fashion in Malaysia as ten skydivers jumped off the world's tallest buildings, the Petronis Twin Towers. A few moments later fireworks marked the start of 2003. Balloons were released into the air at the stroke of midnight in Tokyo and they floated past the illuminated Tokyo Tower. Many Japanese gathered at temples and shrines to pray.

This is not the Chinese New Year but some Chinese cities had celebrations anyway. There was a fireworks display over the harbor in Hong Kong. In a New Year's speech to the Chinese people, outgoing president Jiang Zemin called for a peaceful reunification with Taiwan. Thousands of miles from home, U.S. troops in Kuwait marked the holiday with a New Year's Eve talent show.

(END VIDEOTAPE)

O'BRIEN: That's our special New Year's Eve look around the world. Well, without a trace a pregnant woman disappears on Christmas Eve. Now, Laci Peterson's in-laws are speaking out about the search and their son.

(UNINTELLIGIBLE) in Louisiana, and a new step in the search for a serial killer there, why investigators are resorting to a DNA dragnet. And new research finds some frightening trends about the rates of autism in children, we'll have a full report on that when we come back, but first today's news quiz question. What type of energy will power the ball in New York's Times Square tonight, natural gas, solar, water, or wind, the answer coming up.

(COMMERCIAL BREAK)

O'BRIEN: Today marks one week since a central California woman eight months pregnant vanished without a trace. Twenty-seven-year-old Laci Peterson took her dog for a walk on Christmas Eve and hasn't been seen since. So far, a massive search involving hundreds of volunteers has come up empty. CNN's Rusty Dornin live with more from San Francisco. Rusty there's got to be some leads out there somewhere.

RUSTY DORNIN, CNN CORRESPONDENT: Well, they're due to have a briefing in about a half hour, Miles, but we're not expecting to hear anything. They've just been so frustrated and hoping for some kind of big break in this case that just hasn't come.

They've been following up a few leads. One is a burglary that was in the same neighborhood, right across the street in fact from Laci Peterson and her husband Scott around Christmas Eve. Police have now put out descriptions of three men that they are looking for. They've also put out a reward but they warn that it may or may not be related to her disappearance.

Also, she was seen by her husband getting ready to take her dog for a walk in a local park; however, when the bloodhounds went out on the trail they didn't go to the park. They went straight to the San Joaquin River. Now, the handlers of those animals is saying that possibly she got in a car instead. Apparently divers have been combing the riverbanks of the San Joaquin River. Of course things like that are sure to bring out the family's worst fears.

(BEGIN VIDEO CLIP)

RON GRANTSKI, PETERSON'S STEPFATHER: We're not naive. We know it could have happened and we're just hoping if the worst has happened that at least we'll get some kind of closure. If this person's out there that he would have a little bit of compassion. I know he hasn't shown it yet but hopefully he will.

(END VIDEO CLIP)

DORNIN: Now, another yet unconfirmed lead is in a sporting goods store in Modesto. There was a clerk that claimed to have seen Laci Peterson on Christmas Eve. Police have been pouring over those tapes. There's still no word on whether she was in that store or not.

Meantime, there will be a candlelight vigil in about two hours there in Modesto and a lot of folks from the community are expected to turn out. Her disappearance has had a big impact there -- Miles.

O'BRIEN: Rusty Dornin covering the story for us. We appreciate it. Thank you for checking in. Joining me now from Modesto are Laci Peterson's father-in-law, Lee Peterson, and her sister-in-law Susan Caudillo, good to have you both with us. How is the family holding up and, in particular, how is Scott doing? Lee, why don't you go first?

LEE PETERSON, FATHER-IN-LAW: Scott is very distraught, very worried. He's tired. He's everything you'd expect him to be going through an ordeal like this but he's still out. He's looking. He's searching physically. He's organizing the volunteers and just really keeping active and trying to keep upbeat. He actually keeps us up with his -- well, he's optimistic as we all are trying to stay. We want our daughter-in-law back as soon as possible of course.

O'BRIEN: Susan -- I'm sorry. Are you able to share in that optimism that Lee and Scott are talking about? Are you still as optimistic as you had hoped at the outset?

SUSAN CAUDILLO, SISTER-IN-LAW: Yes, that's the only way that we're going to be as optimistic at this point. We're going to keep a positive attitude and hoping that somebody has Laci and will call anonymously, take the $500,000 reward and let her go. That's what we're hoping.

O'BRIEN: Lee, are you very hopeful at this point? You said you were optimistic that she is, in fact, alive.

PETERSON: I am hopeful. I just, I have a feeling that she'll come through this. She's that type of girl. She's tough and she's resilient. If anybody will come back to us I think it's Laci and I do feel optimistic.

O'BRIEN: Susan, is there any chance knowing your sister-in-law as you do that she could have willingly in some way disappeared or walked away from her life? Is there any clue in her life, and I'm sure you've been looking at all those clues, that would lead you to that conclusion?

CAUDILLO: Yes, absolutely everything points not at that at all. She was so happy. She was doing everything right in her pregnancy. She and Scott were just thrilled about the coming of their baby boy and everything in their life that they have planned for the past five years in their marriage was coming. This was a big event for them and everything was going wonderfully. We spent Thanksgiving with them and they were as happy as ever.

O'BRIEN: Lee, did she have an enemy in the world that you knew of?

PETERSON: No. If you knew Laci, she didn't have any enemies. She was, they used to call her Martha Stewart. They still do I guess. She's got those big dimples and that great smile and we just love her dearly and I don't know of anybody who didn't.

O'BRIEN: Susan, let me offer you an opportunity here to talk to whomever might be responsible for all this and possibly for that matter to Laci. What would you say?

CAUDILLO: OK, well first of all to Laci if there's any way that you can get out of the situation that you're in, try, and we are trying to find you. We're out here. There's hundreds of people that are putting an effort towards bringing you back home so hang in there, OK. And to those of you people that know anything, if you saw anything or know where Laci is or if you have Laci, call that number. You can remain anonymous and the $500,000 reward is there for you if she comes back to us, so please have compassion. Scott needs her back.

O'BRIEN: Lee, a final word.

PETERSON: If someone is holding her, don't let this go any further. Just get her back to us and do the right thing here. Let's return this woman to her family where she belongs.

O'BRIEN: Lee Peterson, Susan Caudillo, thank you very much for being with us. I wish you well and I wish you courage and strength as you continue your search.

PETERSON: Thank you.

CAUDILLO: Thank you. O'BRIEN: There are some new developments in another unsolved case, this one in Louisiana where police are searching for a serial killer, CNN's Martin Savidge joining us with an update on one of the big mysteries of 2002 -- Marty.

MARTIN SAVIDGE, CNN CORRESPONDENT: Hello to you, Miles. In the land of riverboats and gumbo, a serial killer is believed to be on the loose on the bayou. Over the summer, state and federal investigators using forensic evidence, linked the brutal murders of three area women. They went public saying that the deaths were likely the work of the same person.

Today, police said they will begin taking DNA samples of 50 to 100 men in the area to rule them in or out as suspects. The slayings began in September, 2001 with the murder of a 41-year-old nurse, Gina Wilson Green. Twenty-two-year-old Charlotte Murray Pace, a graduate student was next to die last May, and 44-year-old antiques dealer Pamela Kinamore was added to that list in July.

The town prayed that the string had ended. Then shortly before Thanksgiving, a 23-year-old former soldier, Reineisha Dene Columb went missing. Her body was found two days later and DNA evidence showed she was victim number four. Despite the frantic efforts by state and federal law enforcement, the suspected serial killer remains at large and unknown -- Miles.

O'BRIEN: Thank you very much CNN's Martin Savidge who has been looking at unsolved mysteries of 2002 all this day. We appreciate it. Some important news today on autism from the Centers for Disease Control and Prevention, the CDC study out today gives updated figures on autism rates in American children and the results are alarming. CNN Medical Correspondent Dr. Sandra Fryhofer has that story for us.

(BEGIN VIDEOTAPE)

SANDRA FRYHOFER, CNN MEDICAL CORRESPONDENT: What causes autism in young children is still a mystery. What's less of a mystery now is the prevalence of autism in America. It affects many more children than previously thought. In a sampling taken in the Atlanta area over the past six years, the Centers for Disease Control found 34 cases of autism per 10,000 children, a rate ten times greater than earlier studies in the U.S. that were taken in the 1980s and early 1990s. Does this mean we have an epidemic on our hands?

DR. MARSHALYN ALLSOP, CDC: I don't think that we can say that there is an epidemic of autism. We can say the rates of autism are higher now than they were ten years ago. This means that professionals, parents, everyone will see more children with autism and we can say today that autism is not a rare condition.

FRYHOFER: But officials are still not sure whether there are actually more cases now or whether past cases simply went undiagnosed. CDC officials say the criteria for diagnosing autism has broadened since 1994 to include children with even mild symptoms. There are also more services available for people who have been diagnosed with autism and more people have been taking advantage of those services. Public awareness of the condition has also increased and doctors are better trained to recognize the symptoms. Autism is defined as a spectrum of brain development disorders from mild to severe causing children to have poor social skills, unusual styles of communication, and repetitive behaviors. CDC officials give specific warning signs for parents.

ALLSOP: A parent should be concerned if a child has no gestures or no babbling by one year of age, if a child has no single words by 16 months of age, if a child is not putting two words together by two years of age, and at any age if a child has a language and then regresses or loses language that should be a warning that the child may have a significant problem.

(END VIDEOTAPE)

FRYHOFER: And there are still many unanswered questions regarding the increase in autism rates, questions mostly centered around possible causes. Researchers agree that genetics play a role but recent studies looking at possible links with childhood vaccines, such as measles, mumps, and rubella, have not been able to establish a connection.

One mercury-based preservative bimerosol (ph) used in many childhood vaccines is still being investigated as a possible link to autism but that preservative has been pretty much removed from childhood vaccines -- Miles.

O'BRIEN: So, what's a parent to do if you see those symptoms, those language problems for example, do you panic?

FRYHOFER: Well, I think there is some concern but if you are worried about these symptoms, the first thing to do is talk to your pediatrician, get some input from your pediatrician. That's definitely the first thing to do and keep an eye on your kid.

O'BRIEN: All right, Dr. Sandra Fryhofer thank you very much for being with us. I appreciate it.

Checking some other stories in our health beat there's word of a troubling discovery at the American Red Cross. The FDA says the organization received reports that more than 100 people got Hepatitis B after blood transfusions and one of them died.

The Food and Drug Administration says the Red Cross never investigated the cases and it's now trying to find out if bad blood was to blame. Safety violations have plagued the Red Cross for more than a decade now. The charity provides 45 percent of the nation's blood supply.

A new study may answer a key question about human umbilical cord blood, how long can it be stored? The study found that cord blood cells were able to grow and expand in laboratory mice even after the specimens had been frozen for as long as 15 years. Cord blood is used to restore the bone marrow of cancer and leukemia patients whose natural marrow is destroyed by radiation and chemotherapy treatments.

Well, chalk up another one for Viagra. There's now word the drug improves sexual function in men taking antidepressants. As many as 18 million Americans take antidepressants, but many people stopped taking the drugs because of their side effects, including sexual dysfunction. The study appears in the new issue of the journal of the American Medical Association.

Well, it's a frightening possibility but could al Qaeda terrorists have their own makeshift navy? We'll take a look at the latest reports. A freebie for anyone planning to drink and drive this evening, we'll talk to a man who says he'll give you a complimentary coffin, such a deal. And, all the broccoli you can eat on a California freeway. Listen up kids, stay with us. WOLF BLITZER REPORTS returns right after this.

(COMMERCIAL BREAK)

O'BRIEN: Turning now to the war on terror. Could al Qaeda attack ports or cruise ships with its own Navy? "The Washington Post" is reporting that the terror network may control about 15 cargo freighters, which could carry terrorists, guns, explosives and money all around the world.

The report says U.S. spy agencies are scrambling to keep track of these ships, but it's tough because they keep getting new names, new paint jobs, new registrations. Joining us on the line now is CNN's security analyst, Kelly McCann.

Kelly, good to have you with us.

KELLY MCCANN, CNN SECURITY ANALYST: Happy New Year's, Miles.

O'BRIEN: Same to you. This is a sobering report because there are so many gaps in this system. I mean we talk about airport security all the time. Security on the high seas is a different matter entirely, isn't it?

MCCANN: It absolutely is. It's almost a subculture, Miles. And in countries that are analogous, for instance Delaware and corporations, you've got countries like Liberia where changing a ship's registration is very, very easy and usually can be bought against the regulations that are withstanding. So it is a very difficult thing to discern.

O'BRIEN: Well, let's talk about, first of all, port security. And let's start in the United States. I'm going to presume it's improved somewhat since 9/11, but I'm going to guess also that an awful lot of stuff gets into the United States unscreened.

MCCANN: It does. The ships now have to call 96 hours ahead of time. And then sometimes there's actually a party that goes out, joins the ship and actually takes the helm to pilot it into the port itself. And they look at passports before they're given entry.

However, it breaks down when the Conex containers, as seen on the screen right now, many of them are still not screened. I think the current statistic is about three to seven percent, which means there's only a cursory review of what's in those containers that then go to a railhead distribution point, then go to a trucking distribution point, and then end up ultimately inside our country.

O'BRIEN: So it's worth pointing out here that when we talk about al Qaeda having possibly a fleet of freighters, that isn't entirely necessary to achieve their goals, just stuffing some things into these -- those blue boxes, you see right there on the screen -- those containers can have the same effect.

MCCANN: Absolutely. In fact, the many scenarios that can play out are exactly that, that one of those containers is on the screen as being shown right now could be a device itself or it could be used to transport people and get them into the country or other types of things, stinger missile, for example. That's been a big threat. So it is a very complex problem. We are getting a grip on it, but it is an overwhelming problem.

The longshoremen strike that happened on the West Coast, that was more of a security risk than was reported because of the resultant confusion when finally they came back to work and all of that cargo needed to get to retail points.

O'BRIEN: All right, and a final thought here. We tracked that vessel, which went from Korea, ultimately to Yemen, with scud missiles. And it pointed out how much of an interdiction effort is under way on the high seas and how much surveillance there is. Is that the tip of the iceberg? Is there a lot of that going on? And how many vessels do you think are slipping through that net?

MCCANN: It is the tip of the iceberg. We are now working internationally with other allied countries. If you think about it, three levels, of course, the P-3 kind of direct surveillance, satellite imagery, you've got over the horizon physical presence surveillance that can track ships, and then the human assets that pick it up in port. So it is manpower intensive.

O'BRIEN: CNN's Kelly McCann with us on New Year's Eve. We appreciate you being on the line with us shedding some light on this one.

MCCANN: Thanks so much, Miles.

O'BRIEN: See you next year.

There's been more action in the skies over Iraq. For the second time in as many days a U.S. Air Force unmanned drone has been used to destroy an Iraqi radar unit. We get the store from CNN's senior Pentagon correspondent, Jamie McIntyre.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: The predator unmanned aerial vehicle is beginning to live up to its name in Iraq. Once a relatively benign reconnaissance aircraft, the predator UAV has been armed with hellfire missiles and has been used twice now to conduct strikes against mobile targets in the southern no-fly zone. U.S. Air Force pilots control the low, slow flying drones remotely from the ground in Kuwait. And the predators are giving the U.S. the ability to react with lethal force as soon as they spot a potential target.

Friday, a hellfire missile fired from a predator took out a communications van. And yesterday, Monday, another predator attack hit a mobile radar being moved in the southern no-fly zone. The action in the south comes as the U.S. is moving ahead with a methodical deployment of troops, planes and ships to the Persian Gulf region. '

But despite the obvious buildup, President Bush answered a reporter's question in Crawford, Texas, today, with an insistence that he has not yet decided whether to order an invasion.

(BEGIN VIDEO CLIP)

BUSH: You say we're headed to war in Iraq, I don't know why you say that. I hope we're not headed to war in Iraq. I'm the person that gets to decide, not you. And I hope that this can be done peacefully. We've got a military presence there to remind Saddam Hussein, however, that when I say we will lead a coalition of the willing to disarm him if he chooses not to disarm, I mean it.

(END VIDEO CLIP)

MCINTYRE: Among the first troops to be dispatched are the first and third brigade of the Third Infantry Division from Fort Stewart and Fort Benning, Georgia. Those soldiers will join the second brigade already in Kuwait for exercises and form one full division -- Miles?

O'BRIEN: Thank you very much Jamie McIntyre at the Pentagon.

For thousands of American servicemen and women in Kuwait, the new year could mean they're that much closer to going to war against Iraq. But on this New Year's Eve many did their best to forget the threat of conflict, at least for a while, and simply celebrate the holiday. CNN's Ryan Chilcote is there.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): In the middle of the Kuwaiti desert, just miles away from the border with Iraq, it was time for the soldiers of the Army's Third Infantry to test their mettle, in the New Year's talent show.

UNIDENTIFIED MALE: Won't you fly back home and make me hole again.

CHILCOTE: Specialist Dawn Payne (ph) covered Drew Hill's "Angel." It's dedicated to her friend, Antonio, who's serving in Korea. Sergeant Sean Kemer (ph) brought the gospel. That was for his grandma. Johnny Penchecko (ph) and Raul Perez (ph) showcased some Puerto Rican meringue. She's a specialist in chemical warfare. He's an expert in demolition. Specialist Quante Eggleston (ph) won first prize, a $100 gift certificate to Camp New York's Exchange.

As always in the Army, the general got to order a tune. But tonight was mostly a chance for the soldiers to command attention.

Ryan Chilcote, CNN, at Camp DeYork (ph), the Kuwaiti desert.

(END VIDEOTAPE)

O'BRIEN: A lot of talent under that tent.

An enticing opportunity for anyone who plans to drink and drive this evening, free coffins. We'll talk to the man who's making the offer tongue firmly in cheek. And Diana Ross is back in hot water with the law. We'll tell you about her latest run-in with the police when we return.

(COMMERCIAL BREAK)

O'BRIEN: Well, stop in the name of the law. Diana Ross faces three misdemeanor charges, including driving under the influence after she was pulled over in Tucson, Arizona. Police say the singer's blood alcohol level was more than twice the legal limit. She's due in court on January 13. Ms. Ross entered a California drug and alcohol rehabilitation center in May.

Nearly a dozen funeral homes in the Southeast have teamed up to try to curb drunk driving over the New Year's holiday. They're all part of an operation called Stop and Think. It offers free burials to anyone killed in a New Year's Eve wreck who is willing to sign a contract admitting in advance they plan to get drunk or do drugs and then get behind the wheel. With us now from Chattanooga, Tennessee is the program's founder and funeral home director, Barry Miller.

Mr. Miller, good to have you with us.

BARRY MILLER, FUNERAL HOME DIRECTOR: Good to be with you. Thank you for having us.

O'BRIEN: All right, how'd you get this idea?

MILLER: I came up with the idea about five years ago. We decided that we wanted to do something after I lost a family member to a drunk driver, and being in the business, not necessarily on New Year's Eve but throughout the year we have buried people that have been killed by drunk drivers or even the drunk drivers themselves. So we decided to do something to try to make a difference.

O'BRIEN: All right. And going from that to this particular program is kind of a leap. How did this idea come into your head?

MILLER: I just wanted to do something. You know, in today's society, you've been in the media; you know that you have to go to the extreme sometimes to get people's attention. So we decided to go to the extreme, take this contract and use that as a tool to get people's attention to make them stop and think.

O'BRIEN: What has been the response? And I'm going to guess that nobody has signed a contract.

MILLER: You're correct. No one has signed it nor do we anticipate anyone ever signing it. Like I stated earlier, the contract is just merely a tool that we use to get people's attention to make them stop and think and be responsible.

O'BRIEN: Tell us about the response, though. I assume you've heard a lot from the communities.

MILLER: Oh, we have. It's been overwhelming. The cards and letters that we get every year are just amazing. As late as this morning, we had a mother from Mississippi that called and thanked us and told us that her child had been killed by a drunk driver and she thought what we were doing was wonderful and she wanted us to keep up the good work.

O'BRIEN: Well, you know, you as having lost a family member, and hearing from others who have lost family members, must feel as if this problem remains rather stubborn. Do you get the sense -- I mean while awareness is raised by programs such as yours and Students Against Drunk Driving -- that it remains persistent?

MILLER: Yes, of course. We have seen a decline in the amount of alcohol related accidents, which is a plus. So we know that we are making a difference. And as this program continues to grow, hopefully this will be one of the tools that helps make that rate even lower.

O'BRIEN: All right. Well, what's your message, though, as long, as I've given you this electronic bully pulpit here to people on this night of all nights?

MILLER: Our message is just to do exactly what the contracts entitle -- stop and think, be responsible. You know that split second decision can save your life or the lives of others. And it would be an awful expensive evening to know that you had killed someone innocent or, you know, maybe even one of your family members or close friends, just be responsible.

O'BRIEN: How will you ring in the New Year?

MILLER: I will be at a New Year's Eve service at our church.

O'BRIEN: All right. Well, we wish you a Happy New Year and we wish you well in your program...

MILLER: Happy New Year to you.

O'BRIEN: ... and good luck spreading the word. We appreciate you doing that.

MILLER: Thank you, sir.

O'BRIEN: Barry Miller, a funeral home director from Chattanooga, Tennessee, who says if you sign a contract in advance, you'll get a free burial. What? No holidays? In Los Angeles this morning, a vegetable truck overturned on a six-lane freeway spewing out a load of broccoli, about 40,000 pounds worth, snarling traffic. No injuries. And tonight, thousands of Southern California kids are scarffing fries, quietly muttering, "Yes!"

A blitzkrieg of gems from the year gone by, the best from the bearded one. Wolf Blitzer resorts to one of those year-ender pieces that fill our air as the calendar reboots. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Earlier we asked -- what type of energy will power the ball in New York's times square tonight? The answer, wind. The Big Apple's ball drop will be powered by wind energy from a wind farm in Fenner, New York. Who knew?

The New Year also brings new requirements for the nation airports to screen all checked baggage for explosives. Will they meet that deadline and what will it mean for you when you fly? CNN's Patty Davis has some answers for us.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT: The Transportation Security Administration says it will make tonight's midnight deadline to screen all bags at all 429 airports across the country. And how they will do that is by using machines like this. This is an explosives detection machine, as you can see, the size of a sport utility vehicle.

Here at Reagan National, they're by the ticket counters. But at some airports they are doing this screening behind the scenes in the bag handling area.

Now, some airports have trace detection machines. A swab is run over and inside your bag. It checks for explosive residue. Here at Reagan, that's used as a backup to the explosive detection machines. Some airports, though, were not able to get these machines in place in time and they're using bomb sniffing dogs and hand searches of luggage to help get the job done.

Some dos and don'ts from the Transportation Security Administration. Do get to the airport early. Also do not lock your bag. They're saying that if you do, they may have to break that lock if they need to look inside and ruin that lock for you.

Also, do not bring things like this -- a fruitcake. It's dense. These machines are looking for density. Another thing you don't want to bring is a big chocolate bar. That's also something that is dense that will set this machine off or even a block of cheese. Don't bring any of these things in your checked luggage. In fact, that will slow you down here at bag screening.

Patti Davis at CNN, at Reagan National Airport.

(END VIDEOTAPE) O'BRIEN: You know they don't call this the WOLF BLITZER REPORTS for nothing because our hard-working colleague, Wolf, is much more than an anchorman propped up by prompter. But if you're listening on the sixth floor, I humbly submit this suggestion. Perhaps his program might be more aptly called WOLF BLITZER REPORTS AND REPORTS AND REPORTS. He is ubiquitous, even when he's on vacation. Before he left, he compiled a great look-back at 2002. And no, we aren't crying wolf.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN ANCHOR (voice-over): WOLF BLITZER REPORTS went on the road early and often in 2002 scrambling to the front lines and to the newsmakers.

The year began with the U.S. led war on terror in full swing. And it was terrorism that brought Israel and the Palestinians to the brink of all-out war. In the spring, a rash of suicide attacks threatened to blow up the entire region. Israeli forces blasted through Yasser Arafat's headquarters in Ramallah, kept Arafat there as a virtual house prisoner, engaged in a brutal fight with Palestinians in the Jenin refugee camp and moved into other major cities in the West Bank. It was under those conditions that I traveled to the region and spoke with an embattled Israeli Prime Minister Ariel Sharon on April 15.

(on camera): When will the Israeli military withdraw from those areas in the West Bank that they recently reoccupied?

ARIEL SHARON, PRIME MINISTER OF ISRAEL: Ultimately, we don't have any intention to stay in those areas and those cities or cities of terror.

BLITZER (voice-over): Israeli did pull back from most of those West Bank towns, but by the end of the year they were back. There were so many low points in between, including the siege of the Church of the Nativity in Bethlehem. And at Yasser Arafat's compound, the rubble symbolized his crumbling leadership and a shattered peace.

Well, that was pretty smooth. The drive from Jerusalem to Ramallah is short and sweet, but not nowadays.

(on camera): We're at the Columbia checkpoint here. And hopefully we'll get through here.

(voice-over): We headed out to Ramallah. Getting to Arafat was difficult and dangerous. When I spoke to him on May 12, he was being written off to the Israelis as irrelevant. He was under fire from the U.S. for not doing more to stop the suicide attacks. But his defiance had not ebbed.

(on camera): Can you do more as the president of the United States and the prime minister of Israel are appealing to you to stop?

YASSER ARAFAT, PRESIDENT OF PALESTINIAN NATIONAL AUTHORITY: I would like to ask you why they are not dealing with the Israelis or the terrorists to stop this military escalation against our people and against our children?

BLITZER (voice-over): Arafat could not stop the terror. It was one of the bloodiest years ever in Israel and the Palestinian lands. Hundreds of innocents were killed on both sides. In June, we told the victims' stories. One man I spoke to had lost five members of his immediate family in one bombing the previous year.

(on camera): How have you coped though with losing your parents and three brothers and sisters in one suicide bombing?

UNIDENTIFIED MALE: I don't -- it's hard to give answer on this question. It has changed my life forever.

BLITZER (voice-over): The specter of terrorism was a pervasive force in 2002. On September 11, I was at the Pentagon as the country looked back on its worst terrorist attack ever.

BUSH: At every turn of this war, we will always remember how it began.

BLITZER: But less than a month later, the Washington area recoiled from another form of terrorism. We found ourselves again on the front lines, but this time the front line was a police headquarters building in suburban Montgomery County, Maryland.

(on camera): In Virginia this morning, a sniper's victim perhaps, perhaps the tenth victim of this rampage.

(voice-over): For nearly a month, we traced the movements of a sniper who was able to strike and move so quickly that it seemed no dragnet or checkpoint could stop him. Then we suddenly got word, there was a suspect who had a partner and police had them.

(on camera): One of the nation's most extraordinary manhunts culminated this morning with the arrest of John Allen Muhammad and John Lee Malvo at a Maryland rest stop.

(voice-over): In the end, authorities say 10 sniper killings in the Washington area can be linked to Mohammed and Malvo.

We also turned our attention to the confrontation with Iraq and the possibility of war. I traveled to Doha, Qatar for the unveiling of a new temporary headquarters of the U.S. Central Command; a key nerve center for a potential U.S. led attack against Saddam Hussein. But in Doha, it wasn't all business.

(on camera): Handlers dive off the track desperate to avoid being trampled. The camels shoot down the track.

(voice-over): From Qatar, our next stop was Saudi Arabia. We got exclusive access to the massive Prince Sultan Air Base used by U.S. forces. And in another exclusive, I asked the former head of Saudi intelligence, Prince Turki Al-Faisal, the burning question of relations between his nation and the U.S.

(on camera): Is it conceivable to you that Saudi Arabia won't cooperate militarily with the United States if President Bush orders a war against Iraq?

TURKI AL-FAISAL, FORMER HEAD OF SAUDI INTELLIGENCE: If it is through the United Nations -- how can I put it -- under the interests of the United Nations, as we have said many times and as the United States has also committed itself to work in the United Nations, of course, we will cooperate fully.

BLITZER: As the year ended so did our trip through the gulf region with a feeling that we may well return in 2003.

(END VIDEOTAPE)

O'BRIEN: Wolf Blitzer.

We are minutes away from midnight in Berlin. We'll take a look at what's going on there. And time is running out on your opportunity to weigh in on our "Web Question of The Day." Once again it is -- how are you ringing in the New Year? Are you going to a party, staying home with family, will you be asleep, are you at the Brandenburg Gate? Vote at cnn.com/wolf. We'll have the results when we can come back.

(COMMERCIAL BREAK)

O'BRIEN: Our "Picture of The Day" is a live one from Germany where the New Year is just about four minutes away. Berliners are gathered near the Brandenburg gate, both sides we should point out, for what has been billed as the biggest New Year's Eve bash in the German capital's history. Despite frigid temperatures, a large crowd has showed up to enjoy the music, the beer tents, the giant Ferris wheel. And coming at the stroke of midnight, there will be a 10- minute fireworks display.

A couple actually got married or is in this process of getting married, suspended beneath a high wire right near the gate there. The groom is part of the high wire act family, so adding to the sideshow there in Berlin.

Now, here's how you're weighing in on our "Web Question of The Day." How are you ringing in the New Year? Well, 21 percent of you said you're going to a party, 47 percent staying home. Thirty-three percent will be with me asleep and so only one in five going to a party. Imagine that? You can find the exact vote tally and continue to vote, by the way, at our Web site, cnn.com/wolf. And of course, in case you care, this is not a scientific poll.

Time to hear from you and read some of your e-mails.

David writes this -- "As a serviceman, I see the reality of war clearly. The American people must see the world for what it is, they will then understand the importance of why their sons and daughters are being sent off to fight. There is no greater cause than to protect the freedoms that we all enjoy, that our kids can grow old in a nation like no other."

Barbara has this -- "We're just asking for trouble with the U.S. borders open. In times of war, especially terrorist wars, the borders should be shut down. I know we are a free society, but isn't it a smart thing to shut down the borders in war time?"

And Peggy writes this -- "Can you explain to me and the rest of the Canadian audience, why does the United States blame Canada for the sloppy job the U.S. border customs officers do? Canada never let anyone into the United States, the U.S. Customs let the five wanted me in! Canada has no control over who or what the U.S. Customs let through their borders."

And we should point out to you, Peggy, it's the Immigration Naturalization Service to be specific, not to quibble with your point of your e-mail. Thank you all for those e-mails and we'll try to share as many as we can with you throughout the next year.

That's all the time we have for today, the last show of the year. Please join us tomorrow at 5:00 p.m. Eastern. Don't forget "SHOWDOWN IRAQ" weekdays at noon Eastern. Until then, thanks very much for watching. On behalf of the vacationing Wolf Blitzer, I'm Miles O'Brien. "LOU DOBBS MONEYLINE" up next. Kitty Pilgrim is in for Lou.

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





Iraq's Futures Still Uncertain>


Aired December 31, 2002 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
MILES O'BRIEN, CNN ANCHOR (voice-over): Now, on WOLF BLITZER REPORTS, New Year's hope and New Year's fear.

MAYOR MICHAEL BLOOMBERG, NEW YORK: Better to be safe than sorry.

O'BRIEN: On two fronts, trouble is brewing for the year ahead. Strong causes with (UNINTELLIGIBLE).

The president visits a Crawford coffee shop confident diplomacy will work in North Korea, but as for Iraq...

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: An attack from Saddam Hussein or a surrogate of Saddam Hussein would cripple our economy.

O'BRIEN: Al Qaeda's navy, a fleet of freighters with a deadly cargo.

In the Bayou, a DNA dragnet for a serial killer, and an offer of a free funeral, just sign a pledge to drink and drive on New Year's Eve.

(END VIDEOTAPE)

O'BRIEN: It is New Year's Eve, 2002. I'm Miles O'Brien in for Wolf Blitzer. Celebration and security, half a million people are expected to watch the ball drop in New York's Times Square tonight, but from snipers to the bomb squad, police are in the vanguard as the city takes no chances. CNN's Jason Carroll is on the scene. He joins us live with the latest. Jason, how tight is the security?

JASON CARROLL, CNN CORRESPONDENT: Very tight, Miles, but you also know New York City. This is a city that is used to hosting large events. Tonight is no exception. There are roughly 6,000 police officers already out on patrol. That includes undercover officers as well. In terms of a security plan, we can give you some details in terms of what is already in effect.

Bomb squads are out in force as well as dogs from the city's K-9 teams. They will be conducting random sweeps in Times Square as well as throughout the city's transit system. The city's Archangel package has been deployed. That's a group of officers from emergency services, the bomb squad, K-9, as well as hazardous materials unit. They will all be mobilized to respond in an event of an emergency.

Manhole covers, and you know about manhole covers. There are hundreds of them in the city. They have all been sealed in the immediate area. The mailboxes in Times Square have been removed as well as the trash cans for security reasons. Counterterrorism snipers have been stationed on buildings throughout Times Square in the event of some sort of an emergency.

Spectators entering the area will have to go through random checkpoints that have been set up. They'll have to be searched. No bags will be allowed. You will not be able to carry backpacks or anything of the sort into Times Square. Also, it's not just about security on the ground but in the air as well.

The FAA has restricted flights above the Statue of Liberty, as well as Midtown Manhattan. That went into effect at 4:00 p.m. Eastern time. That will stay in effect until 4:00 a.m. Eastern time. The city's police commissioner says it's all in an effort to keep the celebration as safe as possible -- Miles.

O'BRIEN: Well, I got to tell you, Jason, listening to all that it makes me want to stay home. What's your sense of it there, are people still going to turn out and what's the mood on the street?

CARROLL: Well, I know that you might want to stay home, Miles, but just take a look right over here to the side. You can see that a lot of people decided to come on out. There are thousands of people who already started to pack themselves into Times Square and we're still several hours away from the ball being dropped. Obviously a lot of people willing to come out, take part in the festivities, feeling that New York City will be able to safely host this event like it's hosted many others -- Miles.

O'BRIEN: All right, we hope for the best and hope for a good celebration there, a little moment in history there. Jason Carroll in Times Square we'll see you later. For a look at how the rest of America will party, we begin with America's party, the New Year's pageant in Las Vegas.

The city is lit up every night of course but more than a quarter million people are expected to turn out for a fireworks display over the strip tonight. You can bet it will include more than 65,000 pyrotechnic effects from a dozen rooftop locations. Odds are it will be a fun night in Sin City.

In Seattle, they'll be gathering around the Space Needle, of course, where the celebration is capped by a midnight fireworks display. Eight thousand pieces of fireworks will be set off in an eight-minute span. A million people are expected to greet the New Year during Boston's First Night celebration. There will be a parade and poetry readings, ice sculptures and two sets of fireworks, early and late.

And now to "Our Web Question of the Day," how are you ringing in the New Year? Are you going to a party, staying home with family, or will you be asleep like me? Vote at cnn.com/wolf. We'll have the results later in this broadcast, and while you're there we would like to hear from you. Send us your comments. We'll try to read some of them at the end of the program, time permitting, and you can also read my daily online column, sitting in for Wolf here, at cnn.com/wolf.

And, a special programming note for you. CNN will take you live to New York's Times Square tonight for New Year's Eve celebrations. Our special hosted by Anderson Cooper begins at 11:30 p.m. Eastern time.

Thousands of South Koreans used the New Year to stage anti- American protests. They're unhappy about the large U.S. military presence in their country and they claim U.S. policies are hurting the prospects for reunification with the north. CNN's Rebecca MacKinnon is in Seoul, South Korea. She joins us with more.

REBECCA MACKINNON, CNN CORRESPONDENT: Thanks, Miles. Well, South Korea entering 2003 not only with the usual New Year's revelry but also with a very large anti-U.S. demonstration. Estimates are that the number of people on the street protesting against the U.S. troop presence in South Korea amounted to roughly 20,000 people.

Now, the demonstrators were protesting in part over the road accident that occurred this summer involving a U.S. military vehicle which crushed two South Korean teenagers. They were acquitted in a U.S. military court and there have been regular demonstrations in Seoul since then.

Now, the demonstrators also very critical of U.S. policy toward North Korea, calling it too hard line and critical general of U.S. foreign policy with placards reading such slogans as "Don't Attack Iraq."

Now, the feelings here are very complex in South Korea. It's not that North Korea is seen as the good guy but there is a feeling on the street here that the United States is aggravating the situation by refusing to have any form of dialog with the North Koreans. The South Korean government has what's called the Sunshine Policy of engaging North Korea.

The new president-elect Roh Moo-hyun intends to continue that policy of engaging North Korea and he did say today that the United States should not go forward with any policy toward North Korea without first consulting South Korea, because after all if any conflict were to erupt, it's the South Korean people who would bear the brunt of the consequences, back to you Miles.

O'BRIEN: Thank you Rebecca.

The New Year came to Iraq a little over an hour ago. Iraqis honked their horns and danced in the street but behind the celebration quite a bit of apprehension of course, 2003 could bring war. CNN's Rym Brahimi has the latest from Baghdad.

RYM BRAHIMI, CNN CORRESPONDENT: Miles, the U.N. weapons inspectors here on the ground have not only been working until the very last day of this year, they also plan to work on the very first day of 2003. At least seven sites were visited today, Miles. Two biological teams went out, two teams of missile experts, and then a chemical team went out to a research center on petroleum that's monitored by the oil ministry here, and then you had a couple of other teams, a nuclear expert team and a team of experts in all four different fields.

Now there's a lot of work for them probably intensifying the case ahead of that January 27 deadline that they have to meet. January 27, Miles, is as you know when they have to present a report to the U.N. Security Council, a report that by then will have to mention their 60 days of inspection activities, back to you Miles.

O'BRIEN: Thank you Rym Brahimi in Baghdad.

President Bush is spending the New Year at his ranch near Crawford, Texas. This afternoon he went into town, talked to reporters about the conflicts with Iraq and North Korea. CNN White House Correspondent Suzanne Malveaux live in Crawford with details on a trip to the coffee shop that was rather eventful, right, Suzanne?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, that's right. He was at a coffee shop in Crawford early this afternoon. He answered a number of questions but he did make the point that when it comes to North Korea, this is not about a military showdown but rather a diplomatic one. He says he is still hopeful that a peaceful resolution is possible through diplomacy but that he recognized it will take the cooperation of North Korea's neighbors.

However, when it comes to Iraq's Saddam Hussein, not confident saying that Saddam Hussein has a history of defying the will of the international community. Now for the first time President Bush talked about not just the human cost of a possible war with Iraq but also the possible economic cost as well. His former economic advisor, Larry Lindsey, estimating it would be about $200 billion, but his budget director emphasizing that perhaps it would be some $50 billion.

This is a very sensitive situation, topic for the White House because critics have said the U.S. can not afford to go to war with Iraq at the same time while supporting Bush's proposed tax cuts but the president made it very clear. He says that the United States, the economy can not afford to be hit by a weapon of mass destruction from Iraq and that's why he's doing everything in his power to avoid it.

(BEGIN VIDEO CLIP)

BUSH: An attack from Saddam Hussein or a surrogate of Saddam Hussein would cripple our economy. My biggest job and most important job is to protect the security of the American people and I'm going to do that, and I have made the case and will continue to make the case that Saddam Hussein, a Saddam Hussein with weapons of mass destruction is a threat to the security of the American people.

(END VIDEO CLIP)

MALVEAUX: Now, while military preparations are in full force for a possible conflict with Iraq, President Bush saying one of his New Year's resolutions is to resolve these conflicts peacefully -- Miles.

O'BRIEN: Those are good resolutions indeed, Suzanne Malveaux near Crawford, Texas appreciate it.

Ever since the 9/11 attacks there's been plenty of tension during every holiday. That includes this New Year's Eve but should our nerves really be on edge? CNN's David Mattingly looks at holiday anxiety.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): Heightened security, strong police presence, the public asked to remain alert; all common traits of every major American holiday since 9/11. But this year festivities coincide with a widely publicized manhunt for five men who may have illegally entered the U.S. from Canada, adding to safety concerns as the hours count down to the ceremonial ball drop in New York's Times Square.

ERIC MARGOLIS, JOURNALIST, AUTHOR: Well, these five mysterious men on the lamb who I believe to be Pakistanis is certainly making people nervous. We've got the annual celebration jitters worrying that there might be another terrorist attack mirroring the one that was attempted, the unsuccessful one in 1999.

MATTINGLY: That attempt was a millennium airport bombing planned for Los Angeles' LAX. It was thwarted with the December, 1999 arrest of Algerian Amed Resam (ph) who was intercepted in Washington State crossing the Canadian border with bomb-making materials. The fact that New Year's is the only holiday in the U.S. now associated with a known terrorist plot is not lost on this year's revelers.

UNIDENTIFIED MALE: Just too many people and too many things going on. You can't stop anybody from committing a heinous act.

UNIDENTIFIED FEMALE: This is the fourth year I've come. Nothing's happened. Everyone was freaked out with the millennium, nothing happened. After 9/11, nothing happened. I'm not scared.

MATTINGLY: If any holiday plot to do harm does exist it would be inconsistent with known al Qaeda attacks. The 1998 embassy bombings coincided with the eighth anniversary of U.S. troops landing in Saudi Arabia prior to the Gulf War. Those bombings remain the only known attacks with any symbolic timing.

MARGOLIS: It's been a hallmark of at least the al Qaeda to attack when it's not being expected where it's not being expected. So, there's no guarantee that if an attack comes it will be on an American holiday. It may come, you know, someplace far away where our eyes are not gazing.

MATTINGLY: Even so, while most eyes tonight are on clocks and televisions, Times Square celebrants will be under the watchful eye of uniformed police, undercover officers, and rooftop snipers as the final moments of 2002 tick away. David Mattingly CNN.

(END VIDEOTAPE)

O'BRIEN: In many countries, of course, it's already 2003. Here's a firecracker of a look around the world.

(BEGIN VIDEOTAPE)

O'BRIEN (voice-over): Australia was one of the first countries to ring in the New Year. Hundreds of thousands of spectators ooh-ed and awed at a 15-minutes fireworks display at Sydney's Harbor Bridge, and it was the image of a dog carrying an olive branch and then the word peace.

2002 concluded in spectacular fashion in Malaysia as ten skydivers jumped off the world's tallest buildings, the Petronis Twin Towers. A few moments later fireworks marked the start of 2003. Balloons were released into the air at the stroke of midnight in Tokyo and they floated past the illuminated Tokyo Tower. Many Japanese gathered at temples and shrines to pray.

This is not the Chinese New Year but some Chinese cities had celebrations anyway. There was a fireworks display over the harbor in Hong Kong. In a New Year's speech to the Chinese people, outgoing president Jiang Zemin called for a peaceful reunification with Taiwan. Thousands of miles from home, U.S. troops in Kuwait marked the holiday with a New Year's Eve talent show.

(END VIDEOTAPE)

O'BRIEN: That's our special New Year's Eve look around the world. Well, without a trace a pregnant woman disappears on Christmas Eve. Now, Laci Peterson's in-laws are speaking out about the search and their son.

(UNINTELLIGIBLE) in Louisiana, and a new step in the search for a serial killer there, why investigators are resorting to a DNA dragnet. And new research finds some frightening trends about the rates of autism in children, we'll have a full report on that when we come back, but first today's news quiz question. What type of energy will power the ball in New York's Times Square tonight, natural gas, solar, water, or wind, the answer coming up.

(COMMERCIAL BREAK)

O'BRIEN: Today marks one week since a central California woman eight months pregnant vanished without a trace. Twenty-seven-year-old Laci Peterson took her dog for a walk on Christmas Eve and hasn't been seen since. So far, a massive search involving hundreds of volunteers has come up empty. CNN's Rusty Dornin live with more from San Francisco. Rusty there's got to be some leads out there somewhere.

RUSTY DORNIN, CNN CORRESPONDENT: Well, they're due to have a briefing in about a half hour, Miles, but we're not expecting to hear anything. They've just been so frustrated and hoping for some kind of big break in this case that just hasn't come.

They've been following up a few leads. One is a burglary that was in the same neighborhood, right across the street in fact from Laci Peterson and her husband Scott around Christmas Eve. Police have now put out descriptions of three men that they are looking for. They've also put out a reward but they warn that it may or may not be related to her disappearance.

Also, she was seen by her husband getting ready to take her dog for a walk in a local park; however, when the bloodhounds went out on the trail they didn't go to the park. They went straight to the San Joaquin River. Now, the handlers of those animals is saying that possibly she got in a car instead. Apparently divers have been combing the riverbanks of the San Joaquin River. Of course things like that are sure to bring out the family's worst fears.

(BEGIN VIDEO CLIP)

RON GRANTSKI, PETERSON'S STEPFATHER: We're not naive. We know it could have happened and we're just hoping if the worst has happened that at least we'll get some kind of closure. If this person's out there that he would have a little bit of compassion. I know he hasn't shown it yet but hopefully he will.

(END VIDEO CLIP)

DORNIN: Now, another yet unconfirmed lead is in a sporting goods store in Modesto. There was a clerk that claimed to have seen Laci Peterson on Christmas Eve. Police have been pouring over those tapes. There's still no word on whether she was in that store or not.

Meantime, there will be a candlelight vigil in about two hours there in Modesto and a lot of folks from the community are expected to turn out. Her disappearance has had a big impact there -- Miles.

O'BRIEN: Rusty Dornin covering the story for us. We appreciate it. Thank you for checking in. Joining me now from Modesto are Laci Peterson's father-in-law, Lee Peterson, and her sister-in-law Susan Caudillo, good to have you both with us. How is the family holding up and, in particular, how is Scott doing? Lee, why don't you go first?

LEE PETERSON, FATHER-IN-LAW: Scott is very distraught, very worried. He's tired. He's everything you'd expect him to be going through an ordeal like this but he's still out. He's looking. He's searching physically. He's organizing the volunteers and just really keeping active and trying to keep upbeat. He actually keeps us up with his -- well, he's optimistic as we all are trying to stay. We want our daughter-in-law back as soon as possible of course.

O'BRIEN: Susan -- I'm sorry. Are you able to share in that optimism that Lee and Scott are talking about? Are you still as optimistic as you had hoped at the outset?

SUSAN CAUDILLO, SISTER-IN-LAW: Yes, that's the only way that we're going to be as optimistic at this point. We're going to keep a positive attitude and hoping that somebody has Laci and will call anonymously, take the $500,000 reward and let her go. That's what we're hoping.

O'BRIEN: Lee, are you very hopeful at this point? You said you were optimistic that she is, in fact, alive.

PETERSON: I am hopeful. I just, I have a feeling that she'll come through this. She's that type of girl. She's tough and she's resilient. If anybody will come back to us I think it's Laci and I do feel optimistic.

O'BRIEN: Susan, is there any chance knowing your sister-in-law as you do that she could have willingly in some way disappeared or walked away from her life? Is there any clue in her life, and I'm sure you've been looking at all those clues, that would lead you to that conclusion?

CAUDILLO: Yes, absolutely everything points not at that at all. She was so happy. She was doing everything right in her pregnancy. She and Scott were just thrilled about the coming of their baby boy and everything in their life that they have planned for the past five years in their marriage was coming. This was a big event for them and everything was going wonderfully. We spent Thanksgiving with them and they were as happy as ever.

O'BRIEN: Lee, did she have an enemy in the world that you knew of?

PETERSON: No. If you knew Laci, she didn't have any enemies. She was, they used to call her Martha Stewart. They still do I guess. She's got those big dimples and that great smile and we just love her dearly and I don't know of anybody who didn't.

O'BRIEN: Susan, let me offer you an opportunity here to talk to whomever might be responsible for all this and possibly for that matter to Laci. What would you say?

CAUDILLO: OK, well first of all to Laci if there's any way that you can get out of the situation that you're in, try, and we are trying to find you. We're out here. There's hundreds of people that are putting an effort towards bringing you back home so hang in there, OK. And to those of you people that know anything, if you saw anything or know where Laci is or if you have Laci, call that number. You can remain anonymous and the $500,000 reward is there for you if she comes back to us, so please have compassion. Scott needs her back.

O'BRIEN: Lee, a final word.

PETERSON: If someone is holding her, don't let this go any further. Just get her back to us and do the right thing here. Let's return this woman to her family where she belongs.

O'BRIEN: Lee Peterson, Susan Caudillo, thank you very much for being with us. I wish you well and I wish you courage and strength as you continue your search.

PETERSON: Thank you.

CAUDILLO: Thank you. O'BRIEN: There are some new developments in another unsolved case, this one in Louisiana where police are searching for a serial killer, CNN's Martin Savidge joining us with an update on one of the big mysteries of 2002 -- Marty.

MARTIN SAVIDGE, CNN CORRESPONDENT: Hello to you, Miles. In the land of riverboats and gumbo, a serial killer is believed to be on the loose on the bayou. Over the summer, state and federal investigators using forensic evidence, linked the brutal murders of three area women. They went public saying that the deaths were likely the work of the same person.

Today, police said they will begin taking DNA samples of 50 to 100 men in the area to rule them in or out as suspects. The slayings began in September, 2001 with the murder of a 41-year-old nurse, Gina Wilson Green. Twenty-two-year-old Charlotte Murray Pace, a graduate student was next to die last May, and 44-year-old antiques dealer Pamela Kinamore was added to that list in July.

The town prayed that the string had ended. Then shortly before Thanksgiving, a 23-year-old former soldier, Reineisha Dene Columb went missing. Her body was found two days later and DNA evidence showed she was victim number four. Despite the frantic efforts by state and federal law enforcement, the suspected serial killer remains at large and unknown -- Miles.

O'BRIEN: Thank you very much CNN's Martin Savidge who has been looking at unsolved mysteries of 2002 all this day. We appreciate it. Some important news today on autism from the Centers for Disease Control and Prevention, the CDC study out today gives updated figures on autism rates in American children and the results are alarming. CNN Medical Correspondent Dr. Sandra Fryhofer has that story for us.

(BEGIN VIDEOTAPE)

SANDRA FRYHOFER, CNN MEDICAL CORRESPONDENT: What causes autism in young children is still a mystery. What's less of a mystery now is the prevalence of autism in America. It affects many more children than previously thought. In a sampling taken in the Atlanta area over the past six years, the Centers for Disease Control found 34 cases of autism per 10,000 children, a rate ten times greater than earlier studies in the U.S. that were taken in the 1980s and early 1990s. Does this mean we have an epidemic on our hands?

DR. MARSHALYN ALLSOP, CDC: I don't think that we can say that there is an epidemic of autism. We can say the rates of autism are higher now than they were ten years ago. This means that professionals, parents, everyone will see more children with autism and we can say today that autism is not a rare condition.

FRYHOFER: But officials are still not sure whether there are actually more cases now or whether past cases simply went undiagnosed. CDC officials say the criteria for diagnosing autism has broadened since 1994 to include children with even mild symptoms. There are also more services available for people who have been diagnosed with autism and more people have been taking advantage of those services. Public awareness of the condition has also increased and doctors are better trained to recognize the symptoms. Autism is defined as a spectrum of brain development disorders from mild to severe causing children to have poor social skills, unusual styles of communication, and repetitive behaviors. CDC officials give specific warning signs for parents.

ALLSOP: A parent should be concerned if a child has no gestures or no babbling by one year of age, if a child has no single words by 16 months of age, if a child is not putting two words together by two years of age, and at any age if a child has a language and then regresses or loses language that should be a warning that the child may have a significant problem.

(END VIDEOTAPE)

FRYHOFER: And there are still many unanswered questions regarding the increase in autism rates, questions mostly centered around possible causes. Researchers agree that genetics play a role but recent studies looking at possible links with childhood vaccines, such as measles, mumps, and rubella, have not been able to establish a connection.

One mercury-based preservative bimerosol (ph) used in many childhood vaccines is still being investigated as a possible link to autism but that preservative has been pretty much removed from childhood vaccines -- Miles.

O'BRIEN: So, what's a parent to do if you see those symptoms, those language problems for example, do you panic?

FRYHOFER: Well, I think there is some concern but if you are worried about these symptoms, the first thing to do is talk to your pediatrician, get some input from your pediatrician. That's definitely the first thing to do and keep an eye on your kid.

O'BRIEN: All right, Dr. Sandra Fryhofer thank you very much for being with us. I appreciate it.

Checking some other stories in our health beat there's word of a troubling discovery at the American Red Cross. The FDA says the organization received reports that more than 100 people got Hepatitis B after blood transfusions and one of them died.

The Food and Drug Administration says the Red Cross never investigated the cases and it's now trying to find out if bad blood was to blame. Safety violations have plagued the Red Cross for more than a decade now. The charity provides 45 percent of the nation's blood supply.

A new study may answer a key question about human umbilical cord blood, how long can it be stored? The study found that cord blood cells were able to grow and expand in laboratory mice even after the specimens had been frozen for as long as 15 years. Cord blood is used to restore the bone marrow of cancer and leukemia patients whose natural marrow is destroyed by radiation and chemotherapy treatments.

Well, chalk up another one for Viagra. There's now word the drug improves sexual function in men taking antidepressants. As many as 18 million Americans take antidepressants, but many people stopped taking the drugs because of their side effects, including sexual dysfunction. The study appears in the new issue of the journal of the American Medical Association.

Well, it's a frightening possibility but could al Qaeda terrorists have their own makeshift navy? We'll take a look at the latest reports. A freebie for anyone planning to drink and drive this evening, we'll talk to a man who says he'll give you a complimentary coffin, such a deal. And, all the broccoli you can eat on a California freeway. Listen up kids, stay with us. WOLF BLITZER REPORTS returns right after this.

(COMMERCIAL BREAK)

O'BRIEN: Turning now to the war on terror. Could al Qaeda attack ports or cruise ships with its own Navy? "The Washington Post" is reporting that the terror network may control about 15 cargo freighters, which could carry terrorists, guns, explosives and money all around the world.

The report says U.S. spy agencies are scrambling to keep track of these ships, but it's tough because they keep getting new names, new paint jobs, new registrations. Joining us on the line now is CNN's security analyst, Kelly McCann.

Kelly, good to have you with us.

KELLY MCCANN, CNN SECURITY ANALYST: Happy New Year's, Miles.

O'BRIEN: Same to you. This is a sobering report because there are so many gaps in this system. I mean we talk about airport security all the time. Security on the high seas is a different matter entirely, isn't it?

MCCANN: It absolutely is. It's almost a subculture, Miles. And in countries that are analogous, for instance Delaware and corporations, you've got countries like Liberia where changing a ship's registration is very, very easy and usually can be bought against the regulations that are withstanding. So it is a very difficult thing to discern.

O'BRIEN: Well, let's talk about, first of all, port security. And let's start in the United States. I'm going to presume it's improved somewhat since 9/11, but I'm going to guess also that an awful lot of stuff gets into the United States unscreened.

MCCANN: It does. The ships now have to call 96 hours ahead of time. And then sometimes there's actually a party that goes out, joins the ship and actually takes the helm to pilot it into the port itself. And they look at passports before they're given entry.

However, it breaks down when the Conex containers, as seen on the screen right now, many of them are still not screened. I think the current statistic is about three to seven percent, which means there's only a cursory review of what's in those containers that then go to a railhead distribution point, then go to a trucking distribution point, and then end up ultimately inside our country.

O'BRIEN: So it's worth pointing out here that when we talk about al Qaeda having possibly a fleet of freighters, that isn't entirely necessary to achieve their goals, just stuffing some things into these -- those blue boxes, you see right there on the screen -- those containers can have the same effect.

MCCANN: Absolutely. In fact, the many scenarios that can play out are exactly that, that one of those containers is on the screen as being shown right now could be a device itself or it could be used to transport people and get them into the country or other types of things, stinger missile, for example. That's been a big threat. So it is a very complex problem. We are getting a grip on it, but it is an overwhelming problem.

The longshoremen strike that happened on the West Coast, that was more of a security risk than was reported because of the resultant confusion when finally they came back to work and all of that cargo needed to get to retail points.

O'BRIEN: All right, and a final thought here. We tracked that vessel, which went from Korea, ultimately to Yemen, with scud missiles. And it pointed out how much of an interdiction effort is under way on the high seas and how much surveillance there is. Is that the tip of the iceberg? Is there a lot of that going on? And how many vessels do you think are slipping through that net?

MCCANN: It is the tip of the iceberg. We are now working internationally with other allied countries. If you think about it, three levels, of course, the P-3 kind of direct surveillance, satellite imagery, you've got over the horizon physical presence surveillance that can track ships, and then the human assets that pick it up in port. So it is manpower intensive.

O'BRIEN: CNN's Kelly McCann with us on New Year's Eve. We appreciate you being on the line with us shedding some light on this one.

MCCANN: Thanks so much, Miles.

O'BRIEN: See you next year.

There's been more action in the skies over Iraq. For the second time in as many days a U.S. Air Force unmanned drone has been used to destroy an Iraqi radar unit. We get the store from CNN's senior Pentagon correspondent, Jamie McIntyre.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: The predator unmanned aerial vehicle is beginning to live up to its name in Iraq. Once a relatively benign reconnaissance aircraft, the predator UAV has been armed with hellfire missiles and has been used twice now to conduct strikes against mobile targets in the southern no-fly zone. U.S. Air Force pilots control the low, slow flying drones remotely from the ground in Kuwait. And the predators are giving the U.S. the ability to react with lethal force as soon as they spot a potential target.

Friday, a hellfire missile fired from a predator took out a communications van. And yesterday, Monday, another predator attack hit a mobile radar being moved in the southern no-fly zone. The action in the south comes as the U.S. is moving ahead with a methodical deployment of troops, planes and ships to the Persian Gulf region. '

But despite the obvious buildup, President Bush answered a reporter's question in Crawford, Texas, today, with an insistence that he has not yet decided whether to order an invasion.

(BEGIN VIDEO CLIP)

BUSH: You say we're headed to war in Iraq, I don't know why you say that. I hope we're not headed to war in Iraq. I'm the person that gets to decide, not you. And I hope that this can be done peacefully. We've got a military presence there to remind Saddam Hussein, however, that when I say we will lead a coalition of the willing to disarm him if he chooses not to disarm, I mean it.

(END VIDEO CLIP)

MCINTYRE: Among the first troops to be dispatched are the first and third brigade of the Third Infantry Division from Fort Stewart and Fort Benning, Georgia. Those soldiers will join the second brigade already in Kuwait for exercises and form one full division -- Miles?

O'BRIEN: Thank you very much Jamie McIntyre at the Pentagon.

For thousands of American servicemen and women in Kuwait, the new year could mean they're that much closer to going to war against Iraq. But on this New Year's Eve many did their best to forget the threat of conflict, at least for a while, and simply celebrate the holiday. CNN's Ryan Chilcote is there.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT (voice-over): In the middle of the Kuwaiti desert, just miles away from the border with Iraq, it was time for the soldiers of the Army's Third Infantry to test their mettle, in the New Year's talent show.

UNIDENTIFIED MALE: Won't you fly back home and make me hole again.

CHILCOTE: Specialist Dawn Payne (ph) covered Drew Hill's "Angel." It's dedicated to her friend, Antonio, who's serving in Korea. Sergeant Sean Kemer (ph) brought the gospel. That was for his grandma. Johnny Penchecko (ph) and Raul Perez (ph) showcased some Puerto Rican meringue. She's a specialist in chemical warfare. He's an expert in demolition. Specialist Quante Eggleston (ph) won first prize, a $100 gift certificate to Camp New York's Exchange.

As always in the Army, the general got to order a tune. But tonight was mostly a chance for the soldiers to command attention.

Ryan Chilcote, CNN, at Camp DeYork (ph), the Kuwaiti desert.

(END VIDEOTAPE)

O'BRIEN: A lot of talent under that tent.

An enticing opportunity for anyone who plans to drink and drive this evening, free coffins. We'll talk to the man who's making the offer tongue firmly in cheek. And Diana Ross is back in hot water with the law. We'll tell you about her latest run-in with the police when we return.

(COMMERCIAL BREAK)

O'BRIEN: Well, stop in the name of the law. Diana Ross faces three misdemeanor charges, including driving under the influence after she was pulled over in Tucson, Arizona. Police say the singer's blood alcohol level was more than twice the legal limit. She's due in court on January 13. Ms. Ross entered a California drug and alcohol rehabilitation center in May.

Nearly a dozen funeral homes in the Southeast have teamed up to try to curb drunk driving over the New Year's holiday. They're all part of an operation called Stop and Think. It offers free burials to anyone killed in a New Year's Eve wreck who is willing to sign a contract admitting in advance they plan to get drunk or do drugs and then get behind the wheel. With us now from Chattanooga, Tennessee is the program's founder and funeral home director, Barry Miller.

Mr. Miller, good to have you with us.

BARRY MILLER, FUNERAL HOME DIRECTOR: Good to be with you. Thank you for having us.

O'BRIEN: All right, how'd you get this idea?

MILLER: I came up with the idea about five years ago. We decided that we wanted to do something after I lost a family member to a drunk driver, and being in the business, not necessarily on New Year's Eve but throughout the year we have buried people that have been killed by drunk drivers or even the drunk drivers themselves. So we decided to do something to try to make a difference.

O'BRIEN: All right. And going from that to this particular program is kind of a leap. How did this idea come into your head?

MILLER: I just wanted to do something. You know, in today's society, you've been in the media; you know that you have to go to the extreme sometimes to get people's attention. So we decided to go to the extreme, take this contract and use that as a tool to get people's attention to make them stop and think.

O'BRIEN: What has been the response? And I'm going to guess that nobody has signed a contract.

MILLER: You're correct. No one has signed it nor do we anticipate anyone ever signing it. Like I stated earlier, the contract is just merely a tool that we use to get people's attention to make them stop and think and be responsible.

O'BRIEN: Tell us about the response, though. I assume you've heard a lot from the communities.

MILLER: Oh, we have. It's been overwhelming. The cards and letters that we get every year are just amazing. As late as this morning, we had a mother from Mississippi that called and thanked us and told us that her child had been killed by a drunk driver and she thought what we were doing was wonderful and she wanted us to keep up the good work.

O'BRIEN: Well, you know, you as having lost a family member, and hearing from others who have lost family members, must feel as if this problem remains rather stubborn. Do you get the sense -- I mean while awareness is raised by programs such as yours and Students Against Drunk Driving -- that it remains persistent?

MILLER: Yes, of course. We have seen a decline in the amount of alcohol related accidents, which is a plus. So we know that we are making a difference. And as this program continues to grow, hopefully this will be one of the tools that helps make that rate even lower.

O'BRIEN: All right. Well, what's your message, though, as long, as I've given you this electronic bully pulpit here to people on this night of all nights?

MILLER: Our message is just to do exactly what the contracts entitle -- stop and think, be responsible. You know that split second decision can save your life or the lives of others. And it would be an awful expensive evening to know that you had killed someone innocent or, you know, maybe even one of your family members or close friends, just be responsible.

O'BRIEN: How will you ring in the New Year?

MILLER: I will be at a New Year's Eve service at our church.

O'BRIEN: All right. Well, we wish you a Happy New Year and we wish you well in your program...

MILLER: Happy New Year to you.

O'BRIEN: ... and good luck spreading the word. We appreciate you doing that.

MILLER: Thank you, sir.

O'BRIEN: Barry Miller, a funeral home director from Chattanooga, Tennessee, who says if you sign a contract in advance, you'll get a free burial. What? No holidays? In Los Angeles this morning, a vegetable truck overturned on a six-lane freeway spewing out a load of broccoli, about 40,000 pounds worth, snarling traffic. No injuries. And tonight, thousands of Southern California kids are scarffing fries, quietly muttering, "Yes!"

A blitzkrieg of gems from the year gone by, the best from the bearded one. Wolf Blitzer resorts to one of those year-ender pieces that fill our air as the calendar reboots. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Earlier we asked -- what type of energy will power the ball in New York's times square tonight? The answer, wind. The Big Apple's ball drop will be powered by wind energy from a wind farm in Fenner, New York. Who knew?

The New Year also brings new requirements for the nation airports to screen all checked baggage for explosives. Will they meet that deadline and what will it mean for you when you fly? CNN's Patty Davis has some answers for us.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT: The Transportation Security Administration says it will make tonight's midnight deadline to screen all bags at all 429 airports across the country. And how they will do that is by using machines like this. This is an explosives detection machine, as you can see, the size of a sport utility vehicle.

Here at Reagan National, they're by the ticket counters. But at some airports they are doing this screening behind the scenes in the bag handling area.

Now, some airports have trace detection machines. A swab is run over and inside your bag. It checks for explosive residue. Here at Reagan, that's used as a backup to the explosive detection machines. Some airports, though, were not able to get these machines in place in time and they're using bomb sniffing dogs and hand searches of luggage to help get the job done.

Some dos and don'ts from the Transportation Security Administration. Do get to the airport early. Also do not lock your bag. They're saying that if you do, they may have to break that lock if they need to look inside and ruin that lock for you.

Also, do not bring things like this -- a fruitcake. It's dense. These machines are looking for density. Another thing you don't want to bring is a big chocolate bar. That's also something that is dense that will set this machine off or even a block of cheese. Don't bring any of these things in your checked luggage. In fact, that will slow you down here at bag screening.

Patti Davis at CNN, at Reagan National Airport.

(END VIDEOTAPE) O'BRIEN: You know they don't call this the WOLF BLITZER REPORTS for nothing because our hard-working colleague, Wolf, is much more than an anchorman propped up by prompter. But if you're listening on the sixth floor, I humbly submit this suggestion. Perhaps his program might be more aptly called WOLF BLITZER REPORTS AND REPORTS AND REPORTS. He is ubiquitous, even when he's on vacation. Before he left, he compiled a great look-back at 2002. And no, we aren't crying wolf.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN ANCHOR (voice-over): WOLF BLITZER REPORTS went on the road early and often in 2002 scrambling to the front lines and to the newsmakers.

The year began with the U.S. led war on terror in full swing. And it was terrorism that brought Israel and the Palestinians to the brink of all-out war. In the spring, a rash of suicide attacks threatened to blow up the entire region. Israeli forces blasted through Yasser Arafat's headquarters in Ramallah, kept Arafat there as a virtual house prisoner, engaged in a brutal fight with Palestinians in the Jenin refugee camp and moved into other major cities in the West Bank. It was under those conditions that I traveled to the region and spoke with an embattled Israeli Prime Minister Ariel Sharon on April 15.

(on camera): When will the Israeli military withdraw from those areas in the West Bank that they recently reoccupied?

ARIEL SHARON, PRIME MINISTER OF ISRAEL: Ultimately, we don't have any intention to stay in those areas and those cities or cities of terror.

BLITZER (voice-over): Israeli did pull back from most of those West Bank towns, but by the end of the year they were back. There were so many low points in between, including the siege of the Church of the Nativity in Bethlehem. And at Yasser Arafat's compound, the rubble symbolized his crumbling leadership and a shattered peace.

Well, that was pretty smooth. The drive from Jerusalem to Ramallah is short and sweet, but not nowadays.

(on camera): We're at the Columbia checkpoint here. And hopefully we'll get through here.

(voice-over): We headed out to Ramallah. Getting to Arafat was difficult and dangerous. When I spoke to him on May 12, he was being written off to the Israelis as irrelevant. He was under fire from the U.S. for not doing more to stop the suicide attacks. But his defiance had not ebbed.

(on camera): Can you do more as the president of the United States and the prime minister of Israel are appealing to you to stop?

YASSER ARAFAT, PRESIDENT OF PALESTINIAN NATIONAL AUTHORITY: I would like to ask you why they are not dealing with the Israelis or the terrorists to stop this military escalation against our people and against our children?

BLITZER (voice-over): Arafat could not stop the terror. It was one of the bloodiest years ever in Israel and the Palestinian lands. Hundreds of innocents were killed on both sides. In June, we told the victims' stories. One man I spoke to had lost five members of his immediate family in one bombing the previous year.

(on camera): How have you coped though with losing your parents and three brothers and sisters in one suicide bombing?

UNIDENTIFIED MALE: I don't -- it's hard to give answer on this question. It has changed my life forever.

BLITZER (voice-over): The specter of terrorism was a pervasive force in 2002. On September 11, I was at the Pentagon as the country looked back on its worst terrorist attack ever.

BUSH: At every turn of this war, we will always remember how it began.

BLITZER: But less than a month later, the Washington area recoiled from another form of terrorism. We found ourselves again on the front lines, but this time the front line was a police headquarters building in suburban Montgomery County, Maryland.

(on camera): In Virginia this morning, a sniper's victim perhaps, perhaps the tenth victim of this rampage.

(voice-over): For nearly a month, we traced the movements of a sniper who was able to strike and move so quickly that it seemed no dragnet or checkpoint could stop him. Then we suddenly got word, there was a suspect who had a partner and police had them.

(on camera): One of the nation's most extraordinary manhunts culminated this morning with the arrest of John Allen Muhammad and John Lee Malvo at a Maryland rest stop.

(voice-over): In the end, authorities say 10 sniper killings in the Washington area can be linked to Mohammed and Malvo.

We also turned our attention to the confrontation with Iraq and the possibility of war. I traveled to Doha, Qatar for the unveiling of a new temporary headquarters of the U.S. Central Command; a key nerve center for a potential U.S. led attack against Saddam Hussein. But in Doha, it wasn't all business.

(on camera): Handlers dive off the track desperate to avoid being trampled. The camels shoot down the track.

(voice-over): From Qatar, our next stop was Saudi Arabia. We got exclusive access to the massive Prince Sultan Air Base used by U.S. forces. And in another exclusive, I asked the former head of Saudi intelligence, Prince Turki Al-Faisal, the burning question of relations between his nation and the U.S.

(on camera): Is it conceivable to you that Saudi Arabia won't cooperate militarily with the United States if President Bush orders a war against Iraq?

TURKI AL-FAISAL, FORMER HEAD OF SAUDI INTELLIGENCE: If it is through the United Nations -- how can I put it -- under the interests of the United Nations, as we have said many times and as the United States has also committed itself to work in the United Nations, of course, we will cooperate fully.

BLITZER: As the year ended so did our trip through the gulf region with a feeling that we may well return in 2003.

(END VIDEOTAPE)

O'BRIEN: Wolf Blitzer.

We are minutes away from midnight in Berlin. We'll take a look at what's going on there. And time is running out on your opportunity to weigh in on our "Web Question of The Day." Once again it is -- how are you ringing in the New Year? Are you going to a party, staying home with family, will you be asleep, are you at the Brandenburg Gate? Vote at cnn.com/wolf. We'll have the results when we can come back.

(COMMERCIAL BREAK)

O'BRIEN: Our "Picture of The Day" is a live one from Germany where the New Year is just about four minutes away. Berliners are gathered near the Brandenburg gate, both sides we should point out, for what has been billed as the biggest New Year's Eve bash in the German capital's history. Despite frigid temperatures, a large crowd has showed up to enjoy the music, the beer tents, the giant Ferris wheel. And coming at the stroke of midnight, there will be a 10- minute fireworks display.

A couple actually got married or is in this process of getting married, suspended beneath a high wire right near the gate there. The groom is part of the high wire act family, so adding to the sideshow there in Berlin.

Now, here's how you're weighing in on our "Web Question of The Day." How are you ringing in the New Year? Well, 21 percent of you said you're going to a party, 47 percent staying home. Thirty-three percent will be with me asleep and so only one in five going to a party. Imagine that? You can find the exact vote tally and continue to vote, by the way, at our Web site, cnn.com/wolf. And of course, in case you care, this is not a scientific poll.

Time to hear from you and read some of your e-mails.

David writes this -- "As a serviceman, I see the reality of war clearly. The American people must see the world for what it is, they will then understand the importance of why their sons and daughters are being sent off to fight. There is no greater cause than to protect the freedoms that we all enjoy, that our kids can grow old in a nation like no other."

Barbara has this -- "We're just asking for trouble with the U.S. borders open. In times of war, especially terrorist wars, the borders should be shut down. I know we are a free society, but isn't it a smart thing to shut down the borders in war time?"

And Peggy writes this -- "Can you explain to me and the rest of the Canadian audience, why does the United States blame Canada for the sloppy job the U.S. border customs officers do? Canada never let anyone into the United States, the U.S. Customs let the five wanted me in! Canada has no control over who or what the U.S. Customs let through their borders."

And we should point out to you, Peggy, it's the Immigration Naturalization Service to be specific, not to quibble with your point of your e-mail. Thank you all for those e-mails and we'll try to share as many as we can with you throughout the next year.

That's all the time we have for today, the last show of the year. Please join us tomorrow at 5:00 p.m. Eastern. Don't forget "SHOWDOWN IRAQ" weekdays at noon Eastern. Until then, thanks very much for watching. On behalf of the vacationing Wolf Blitzer, I'm Miles O'Brien. "LOU DOBBS MONEYLINE" up next. Kitty Pilgrim is in for Lou.

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Iraq's Futures Still Uncertain>