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CNN Wolf Blitzer Reports

Terror Threat Level Raised to High

Aired May 20, 2003 - 17:00   ET

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

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


WOLF BLITZER, CNN ANCHOR: The nation's terror threat goes up to orange, and we're going into a holiday weekend. Whether you're traveling to the West, to the East, or to the Midwest, there's information you need to know, and you'll get it here.
WOLF BLITZER REPORTS starts right now.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The terror threat, code orange. Americans brace for more trouble abroad, but will the next attack come at home?

UNIDENTIFIED MALE: This change is based upon the recent terrorist bombings in Saudi Arabia and Morocco. The United States intelligence community believes that terrorists continue to plan attacks against targets in the United States.

BLITZER: A key ally battles an ally of al Qaeda. Is the U.S. doing enough to help? I'll ask Philipine President Gloria Arroyo.

Mad cow in Canada.

UNIDENTIFIED MALE: We have notified the embassies. The beef industry is also involved in this, as well. We've notified all of the embassies of our major trading partners.

BLITZER: The U.S. takes action.

The world's top female golfer tees off with the men. Annika answers the critics.

ANNIKA SORENSTAM, GOLFER: I'm curious to see how good my game is and how I will stand up to these guys.

BLITZER: And I'll ask music master Quincy Jones why he wants you to listen up.

(END VIDEOTAPE)

BLITZER: It's Tuesday, May 20, 2003. Hello from Washington. I am Wolf Blitzer reporting.

As Americans get ready for the busy Memorial Day weekend and the start of the summer travel season, the government is raising the nationwide terror alert level from yellow to orange, signaling a high risk of an attack. Following a wave of suicide bombings abroad, U.S. intelligence have picked up worrisome signs that this country may be the next terror target, and Homeland Security officials are warning that the same kind of tactics used abroad, namely car and suicide bombings against so-called soft targets, could be used here at home.

Let's begin with our CNN national security correspondent David Ensor -- David.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Wolf, it is those kinds of attack on soft targets that are so familiar in Israel, in India, in Spain, and for many years in Great Britain. That kind of attack that is driving this decision. U.S. officials fearing that sort of thing could, could happen here.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): The president's Homeland Security Council made the decision to raise the terror threat level index during a White House meeting amid signs al Qaeda may attempt additional attacks in coming days, attacks to follow on the bombings in Riyadh, Saudi Arabia, possibly attacks against targets in the United States.

ASA HUTCHINSON, UNDER SECRETARY OF HOMELAND SECURITY: The use of tactics similar to those that we have seen in recent terrorist attacks have to be considered. They cannot be discounted. Those would include use of small-armed equipped assault teams, large vehicle-borne explosive devices and suicide bombers. This is not to indicate this is going to happen in the United States, but when we see a pattern of activity overseas, directed at the United States targets, we certainly have to be aware that there remains that potential of use of those type of tactics here in the United States.

ENSOR: This is the fourth time since the system was created that the administration has raised the nation's alert status to high. Experts say it will likely remain high at least through Memorial Day and July 4th.

BRUCE HOFFMAN, RAND CORPORATION: Certainly terrorists like to hang their attacks on some symbolic event, and what more symbolic event, especially when you're at war with the United States, than either the day that memorializes our dead, or the day that we celebrate our own independence and our own freedom and indeed the values for which those who hate us are so against.

ENSOR: The decision to go on high alert is based on intelligence suggesting a threat to the U.S. that one senior official calls "reasonably spooky stuff." Though it is not specific as to where, when or how the terrorists might strike.

(END VIDEOTAPE)

ENSOR: Administration officials say the information is not specific, but it is credible enough to raise real concern. An FBI warning to local law enforcement says the attacks in Riyadh and Morocco could, quote, "be a prelude to an attack in the United States." The decision is a signal to state and local law enforcement to increase their vigilance against terror and their protection of key installations and large gatherings, especially those since officials say this time that they fear these attacks on soft targets could be attempted.

U.S. officials are saying as they monitor communications between suspected terrorists and interrogate others, the challenges to separate the wishful thinking and bluster from discussion of real plots that might be under way.

At this time, the president and his advisers apparently concluded they couldn't take a chance -- Wolf.

BLITZER: David Ensor with worrisome reporting. Thanks very much, David, for that report. Even before the terror alert was raised, the FBI was warning law enforcement agencies of heightened concerns, and in one area in particular there's been -- that's been especially hit hard by terrorism, security precaution are already being stepped up.

Let's's go live to New York City. That's where CNN's Maria Hinojosa is standing by. What's happening on the streets of New York, Maria?

MARIA HINOJOSA, CNN CORRESPONDENT: Well, Wolf, as you know, New York City has been at the orange level since September 11, so New Yorkers are pretty much used to this. But earlier today, the police commissioner and the mayor said that in light of what was happening around the world and the terror attacks in Saudi Arabia, that they were going to be changing things around a little bit. They immediately spoke about increasing the presence at bridges, like the Brooklyn Bridge, at tunnels. They said that they were going to increase plainclothed officers at sensitive locations. They were going to have uniformed officers more in the subways.

They said that in general, you might be able to see some of this, but you might not. They're calling this the surge effect, that sometimes you'll be able to see this but sometimes you won't. They say that everybody is working on this, though.

Now, earlier today, just a few minutes ago, Governor George Pataki also spoke about this, again repeating what Mayor Bloomberg said, that there is no specific credible threat against New York City or the state, but he did say that what they were going to be doing is, again, increasing police and National Guard throughout the state, at critical locations like transportation centers, infrastructure sites, power plants, commuter railroads, and certainly on the border between New York and Canada.

And also he spoke about this being a very important weekend in New York. It's called "fleet week," when the large boats come with their sailors and they all pour into the city. Let's hear what he had to say.

(BEGIN VIDEO CLIP)

GOV. GEORGE PATAKI (R), NEW YORK: This is fleet week, and this is Memorial Day weekend. And people should go about their lives. People should thank those who come into the city for fleet week. People should plan to have respectful celebrations on this Memorial Day weekend, but be vigilant and be alert.

(END VIDEO CLIP)

HINOJOSA: Now, what we also know across the country, different cities doing other things. We know that in San Francisco, they have increased -- they said that they will be double-checking the Golden Gate Bridge, and that they will be closing certain access areas below the Golden Gate Bridge. And we also know, though, that other cities, they are staying at the same level. We know that in Houston, Detroit there has been no change, because they've already worked into their policing to be prepared for these kinds of terror threats -- Wolf.

BLITZER: Maria Hinojosa in New York City. Thanks very much, Maria, for that report.

So is al Qaeda back in business, and is the United States ready to face a renewed, perhaps different kind of terror threat? Joining me now is John Hulsman of the Heritage Foundation, an expert on international security and the war on terrorism. John, thanks very much for joining us. Is al Qaeda back in business?

JOHN HULSMAN, HERITAGE FOUNDATION: Oh, I think they are. I mean, there's no doubt that al Qaeda is best thought of as a multinational corporation, albeit it an evil one. What we've done in Afghanistan is knock out the central office, but all the branch offices who have money, years of planning in advance and a desire that all multinationals do, to look to those who support it to do well. They must be relevant. They must continue to attack targets and be seen as the Saladdin figure that bin Laden wants to be and stand up to the West. I think that's precisely why we see this series of attacks.

BLITZER: So in recent days, we've seen these soft targets attacks, suicide bombings in Riyadh, in Casablanca. Could that happen actually in the United States? There are plenty of soft targets, as we all know.

HULSMAN: I think you're absolutely right. I mean, I think it's harder for them, and in fact, one of the signs that things in the war on terror are going pretty well is that they're being forced to attack soft targets in places like Africa, Saudi Arabia, which don't have really the homeland security kind of imprimatur that we do here in the United States. But could they find soft targets in the United States? Yes. And would that be a huge public relations victory for them? Absolutely. Certainly, I would imagine, they'll be trying to do just that.

BLITZER: So it was justified for the administration to go up to this higher level of alert, but what should that mean for our viewers who want to go traveling this summer, especially this Memorial Day weekend? Should they reconsider their plans?

HULSMAN: No, I don't think so. I mean, I think the comment made in your report that you can't let the terrorists win. You have to go on about your lives, and I think that means that we all have -- we're sensible. We look out for things that are suspicious. We report them when perhaps in the past we wouldn't have. But I think we have to live our lives; otherwise the terrorist do win. I don't think that there's any credible, hard evidence of a specific target to stay away from. I think we all just have to be more vigilant. I think that's the price of living in the times we're in.

BLITZER: When I heard Governor Pataki of New York speak just a little while ago, when I heard Asa Hutchinson of the Homeland Security Department speak, they both made a point that they've made in the past, but it seems to be a little bit harder hit right now, namely if you, an average citizen, suspect something going to, report it right away to local law enforcement. Did you get that sense that they're asking people for help?

HULSMAN: I think they are, and I did get that sense when I was listening to that as well, and I think that's what people should do. In the past, when you saw suspicious things before September 11, you'd shrug and go on about your day. I think now that part of our challenge as citizens, to be responsible citizens, is to report these suspicious things. Better to be safe than to be sorry, and I think that's very good advice.

BLITZER: And when you take a look right now at al Qaeda, we use that term, but there are a lot of groups that are associated, sympathetic with al Qaeda, who may have their own agenda, but blame it on al Qaeda.

HULSMAN: You bet. I mean, al Qaeda finances and uses these group, but they also use al Qaeda. They can get things done. For instance, Bali boming. Al Qaeda worked with Filippino groups that were directly al Qaeda, but were sympathetic to what was going on there. There are all kinds of subsidiary groups in the multinational corporation that and indeed do al Qaeda's bidding, and you're beginning to see some of that. They link up with the groups because they can't do things on their own.

BLITZER: For example, the other day they raised questions about Hamas, Hezbella.

They've been isolated in the Middle East but could they make a move on U.S. soil?

HULSMAN: I think they couldn't yet. I think, actually, the thing that gives al Qaeda distinctiveness is they can strike anywhere in the world and that they plan in advance -- years in advance so they have the money to back up what they do. It's only when you go to a region of these countries their in that al Qaeda teams up with them. So not yet but something to watch out for.

BLITZER: John Hulsman, of the Heritage Foundation, thanks for your expertise.

HULSMAN: Pleasure.

Here's your turn to weigh in on the story. Our web question of the day is this, "Are you more or less concerned about terrorism in the U.S. since in the Iraq war?"

We'll have the results later in this broadcast. You can vote at cnn.com/wolf. While you're there, I'd like to hear from you. Send me your comment, I'll try to read them on the air each day at end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

Mad Cow concerns coming up, Agriculture Secretary Ann Veneman joins us on here take on the discovery of the disease in Canada.

How worried should we be here in the United States?

And crisis in the cockpit. The last moments played out in voice recordings from Air Midwest flight 5481.

And later, the war on terror. The Philipine President Gloria Arroyo, she'll join me live. She'll weigh in on her thoughts on her country's role.

(SINGING)

BLITZER: And one of the men behind "We are the World" is trying to make the world a better place again. I'll speak live with Quincy Jones. That's coming up.

(COMMERCIAL BREAK)

BLITZER: The United States takes precautionary measures to guard against the threat of Mad Cow Disease. It's now hit North America. The first time in 10 years. I'll speak live with the U.S. Agriculture Secretary Ann Veneman. That's coming up next on WOLF BLITZER REPORTS.

(COMMERCIAL BREAK)

BLITZER: We'll have much more on the terror threat going up. That's coming up.

We also have more on other breaking developments, but there is a significant story happening in Canada right now. Canadian officials have confirmed the first case of Mad Cow Disease in that country since 1993. Although rare the human form of the disease is especially frightening. Our medical correspondent Elizabeth Cohen is joining us now in the CNN center in Atlanta.

This is a scary story, Elizabeth.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Well, it is a scary story in a way, Wolf, you have to take into consideration this is just one cow and there are many, many cows, obviously, in Canada and the United States. But still this news today had a big impact in the U.S. and in Canada.

(BEGIN VIDEOTAPE)

COHEN (voice-over): This is what Mad Cow Disease looks like. Until now, the U.S. has been Mad Cow free and officials want to keep it that way. So now the U.S. Department of Agriculture is barring Canadian beef from entering the United States. The action taken after a cow in Alberta, Canada, tested positive for Mad Cow Disease.

SHIRLEY MCCLELLAN, CANADIAN AGRICULTURE MINISTRY: The important thing is this animal was not allowed into the food chain. The system worked. The preventionial inspector took the animal, condemned it and then all of the necessary steps which are in place for this very reason occurred.

COHEN: Mad Cow disease affects the brain and nervous system in cattle. It's rare in Canada. This their is the second case, the first was in 1993. But in the 1990s the disease reaked havoc in Britian. Farmers had to slaughter 3.7 million infected cattle. Though it's rare humans con contract the disease by eating infected meat. In the last 15 years more than a hundred people have been infected worldwide.

In an exclusive report, CNN brought you the story of Charlene, the first story living in America, with the human form of Mad Cow Disease. She contracted it while living in England. The United States does not import beef from England or from any of the 21 other countries who have had infected cattle. Still the U.S. feels the ripple effect. Just the thought of Mad Cow on the North American continent sent these related stocks falling today, McDonald's, Wendy's, Outback Steak and Tyson Foods, the biggest meat processor saw a slide. And now in Canada, the investigation is on.

UNIDENTIFIED MALE: The focus must be on determining how this one cow became infected.

COHEN: That won't be easy. Cows get sick from eating tainted feed, but the incubation period is two to eight years, so it will be difficult to trace exactly what this cow ate and when.

(END VIDEOTAPE)

COHEN: The entire herd that this cow belonged to will be slaughtered and the meat will not be allowed to enter the food supply -- Wolf.

BLITZER: Elizabeth Cohen with the latest on Mad Cow Disease in Canada. Thank you very much, Elizabeth, for that report.

The U.S. Agriculture Department has temporarily banned the import of Canadian beef. Here to talk about that and more is the Secretary of Agriculture Ann Veneman.

Secretary, thank you very much for joining us. This sounds very, very concerning. When we spoke the last time you were deeply concerned about one incident in the United States. This isn't the United States, it's Canada. How concerned should Canadians be and Americans?

ANN VENEMAN, AGRICULTURE SECRETARY: Well, this is an isolated incident, as you say, and I think the Canadians have handled it very appropriately. They have isolated the cow and it has not entered the food chain in any way. The herd in which it was a part has been isolated, will be slaughtered and will not enter the food chain. We have taken a temporary measure to not allow any cattle or beef products to enter into the U.S..

We think that until the investigation is complete this, is an appropriate step. We are sending people up to engage in the investigation with the Canadians, but in the meantime we continue to have a very safe meat supply, and I would not discourage anyone right now from eating meat. In fact, I would very much encourage people to feel very, very safe about their food supply.

BLITZER: Here in the United States as well as in Canada?

VENEMAN: Absolutely. I think this incident shows that this system works that we continue to test cattle. This was an older cow that had some disease problems, was not put into the food chain, was quickly taken out. And I think it shows that our system of strong surveillance in North America does work and that our food supply is safe.

BLITZER: (UNINTELLIGIBLE) herds of cattle move back and forth across the U.S.-Canadian border, this incident was in Alberta, right?

VENEMAN: That's right.

BLITZER: The Providence of Alberta.

Do we know if this herd ever had spent time in the United States?

VENEMAN: That will be part of the investigation. This cow was eight years old. There is a lot of movement. We have a fairly integrated North American market in the United States and Canada. We trade a lot of cattle as well as we slaughter a lot of beef on both sides of the border. And so we will be part of the investigation, the Canadians and the United States Department of Agriculture have been working very closely together and we'll continue to do that. But again I want to reiterate that at this time we see no reason for any consumer to be concerned about the safety of the food supply. And in fact, I intend to eat a steak tonight.

BLITZER: Has there been any incident of Mad Cow Disease affecting cattle in the United States as far as you know?

VENEMAN: No.

BLITZER: Ever. Because I remember the last time you spoke you were deeply worried that one incident could spread, and that's why this is so important to protect the U.S. cattle industry, if you will.

VENEMAN: Actually, I think this is an important distinction because I believe the last time we spoke we were concerned about Foot- and-Mouth Disease which is a completely different issue. It's a different disease. This is a disease that does not quickly spread among cattle. Foot-and-Mouth Disease is a contagious cattle...

BLITZER: That's your real nightmare, Foot-and-Mouth Disease. VENEMAN: That's are real nightmare. And that's a different disease that's very contagious among cattle and it does not affect the human food safety at all. And so this is one of the things that the consumers have a difficult time understanding is the difference between those, but there they're really very different, Foot-and-Mouth Disease and Mad Cow Disease.

BLITZER: How long will it take to find out how this one cow got this disease?

VENEMAN: I think it's too early to say that. We are going to, as I said, be sending people up to Canada to work with their veterinarians up there. We will make all resources available. We will do everything we can to help them track back this particular animal and to try to make a determination as to what happened here. As I said, we believe the Canadians are taking all appropriate precautions in quarantining this herd, and slaughtering it and testing it all. And we'll know a lot more after that's done.

BLITZER: Enjoy your steak tonight.

VENEMAN: Thank you very much.

BLITZER: Secretary Ann Veneman, thanks very much. We'll continue this conversation.

And we're standing by -- much more developments, more news coming up on the terror threat. That's gone up from yellow to orange, from elevated to high.

We're standing by for a news conference. The major of Los Angeles is speaking out. We'll have live coverage of that -- as well as other news, including this.

The crisis in the cockpit -- that's coming up.

Painting the picture of the last minute of a doomed Air Midwest flight.

And later, from record producer to social activist -- Quincy Jones talks to me live about his new project, working with children.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Code orange. We are now heightened at the high terror alert level. We've gone up from yellow to orange. We're having much more coverage on that coming up -- including details, what that means to you, especially approaching the Memorial Day weekend.

But first, let's get some other stories.

Transcripts of cockpit recordings of a doomed Air Midwest flight reveal a chilling picture of what was going just seconds before the plane crashed in January. The National Transportation Safety Board released the transcripts today at a public hearing on the crash in Charlotte, North Carolina which killed all 29 people on board.

CNN's Patty Davis is joining us live from Reagan National Airport -- just outside Washington -- with the latest.

This is pretty chilling material you got there, Patty.

PATTY DAVIS, CNN CORRESPONDENT: It is chilling, Wolf, and that flight lasted just 37 seconds, but almost from the start the pilots knew something was drastically wrong.

(BEGIN VIDEOTAPE)

DAVIS (voice-over): Out of the wreckage of Air Midwest flight 5481, the plane's cockpit voice recorder captures the pilot's panicked last moment.

As the plane climbs too steeply, Captain Katie Leslie tries to push the nose down. It doesn't respond.

"Oh, my God," she says and declares an emergency.

A child yells "Daddy" as warning horns sound and the plane stalled.

Captain Leslie shouts, "Pull the power back."

Six seconds later, she again screams, "Oh my God," as the plane plunges to the ground near the runway. All 21 onboard killed.

The transcript of the black box -- released by the National Transportation Safety Board, which is holding two days of hearings on the crash.

ELLEN ENGLEMAN, CHAIRWOMAN, NATIONAL TRANSPORTATION SAFETY BOARD: There are several issues on the table. On the mechanical issues. (UNINTELLIGIBLE) balance issues. All of the factors that we have to take into consideration.

DAVIS: The cockpit voice recorder shows the pilots discussed the plane's weight extensively.

Co-pilot Jonathan Gibbs joking "He's probably looking at our tail, like about ready to hit the ground right now with all the bags back there."

But in the end, the decision was made to take all 19 passengers and 31 bags. Also of concern, the Beach 1900 had undergone maintenance two days before the crash. The NTSB says the plane's elevator cables were improperly rigged, which would have made it hard to control.

MICHAEL GOLDFARB, FORMER FAA CHIEF OF STAFF: For both takeoff and landing, the load and balance of aircraft is critical. When you couple that with the maintenance problems, then you're creating a deadly mix.

DAVID: While the NTSB is looking for answers, so is the family of Co-pilot Gibbs.

UNIDENTIFIED MALE: I'm sure he performed well. He was a great pilot, and they did everything they could have done.

(END VIDEOTAPE)

DAVIS: As a result of the crash, the FAA raises passenger weight estimate by 10 pounds to account for the expanding American waistline.

Now using those new weight estimates, the NTSB says that this Air Midwest flight would have been badly overweight and would have to take off passengers, baggage, or fuel to fly safely -- Wolf.

BLITZER: Patty Davis at Reagan National Airport with an important story. Patty, thanks very much.

A handful of U.S. allies are fighting on the front lines of the war on terror. One of them joins me just ahead.

I'll speak live with the Philippine's president, Gloria Arroyo.

And composer, producer, philanthropist Quincy Jones is all three and he'll also be with me live to talk about what he's doing for children's hospitals' care.

And can a woman really compete with men in a sport that thrives on tradition? We're about to find out. Annika Sorenstam's bid to outduel the men in a top golf event.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. You're looking at live pictures of the mayor of Los Angeles James Hahn. He is briefing the public about steps that Los Angeles is taking in light of the word from Washington, the federal government raising the terror threat level from Yellow to Orange, from Elevated to High. The Los Angeles mayor saying there will be increased patrols. They'll be monitoring Los Angeles International Airport.

He is also asking the public at large in L.A. to notify law enforcement, to be vigilant if there's anything, anything suspicious at all. Los Angeles Mayor James Hahn. We'll continue to monitor what he has to say. We'll come back to him if there are more developments there.

Welcome back to our continuing coverage. Also coming up, Quincy Jones on a mission other than music. We'll speak to him live. That's coming up.

First let's check some other late-breaking headlines at this hour. (NEWSBREAK)

BLITZER: Turning again to our top story, following a wave of terror bombings abroad U.S. officials are with worried that this country may indeed be the next target. There's been an increase in what's called chatter or intelligence intercepts of suspected communications, and one official is calling all of this "spooky stuff." That's a direct quote. That led the federal government today to raise the nationwide terrorism alert.

(BEGIN VIDEO CLIP)

HUTCHINSON: This afternoon the Department of Homeland Security in consultation with the Homeland Security Council raised the national threat level from Elevated to High risk of a terrorist attack.

This change is based upon the recent terrorist bombings in Saudi Arabia and Morocco, also in conjunction with intelligence reports concerning anti-U.S. terrorist group intentions. The United States intelligence community believe that terrorist continue to plan attacks against targets in the United States. And for this reason the alert level has been raised as I mentioned.

This afternoon Secretary Ridge spoke with governors and mayors, and he continues to have those discussions with them, as he asked them deploy additional police forces to review their own security measures. And particularly discussed with them the venues in which there would be large public gatherings.

For all Americans we recommend that you continue with your plans for work or leisure. The purpose of this announcement of course, is to alert our law enforcement community primarily so that they can implement their security measures. And then, secondly, to advise the American public of this increased alert level so that they can themselves be alert and vigilant because vigilance, in it of itself, is a deterrent to terrorist activity.

(END VIDEO CLIP)

BLITZER: Asa Hutchinson, the undersecretary for Homeland Security speaking about two hours ago here in Washington.

A heightened terror threat here in the United States. Intelligence about terrorist capabilities overseas. I'll discuss the big picture in the war on terror live with the visiting president of the Philippines, Gloria Arroyo. She's standing by at Blair House here in Washington.

And the legendary Quincy Jones talks about his passion for helping children. My live interview with him. That's also coming up.

(COMMERCIAL BREAK)

BLITZER: Here in Washington -- excuse me -- President Bush's praising Philippine President Gloria Arroyo as an unwavering partner in the war on terrorism. Mrs. Arroyo is on a state visit and held talks with the president yesterday and afterwards was honored at a state dinner, just the third leader to receive such treatment since President Bush has been in office.

President Arroyo is joining us now live from Blair House here in Washington, the official residence for visiting leaders.

Thanks very much, madam president, for being with us. How much of a problem is this terror threat to you in the Philippines, specifically from Abu Sayyaf this group associated with al Qaeda?

GLORIA MACAPAGAL ARROYO, PHILIPPINE PRESIDENT: When September 11 happened we had already been contending with a terrorist threat of Abu Sayyaf.

Now Abu Sayyaf has lost their last hostages because the last two hostages escaped from their clutches while their guards were sleeping and it was raining hard so they could not chase after them with footprints. So I would say that this is a threat that has lost a lot of its clout.

Nonetheless, we have seen from the alert that it's happening now here in the United States. While there's been much progress on terrorism, there's still much work to do and it is very important that the countries work together in order to address this threat together.

BLITZER: Madam president, is al Qaeda making a comeback right now? How significant of a threat is this terror organization, not only to you and your people in the Philippines, but around the world including here in the United States?

ARROYO: What I understand is that al Qaeda is only half as strong as it used to be.

Nonetheless, if that one-half is still there, then the work is not yet over. I believe that al Qaeda is on a strategic retreat and that is a tactical offense.

BLITZER: When you say strategic retreat, they're waiting, they're trying to regroup, but they will resurface with a vengeance? Is that what you're suggesting?

ARROYO: They're on a strategic defensive. In other words, they have a strategic setback so they're going on a tactical offensive. It is -- it's like the death throes of somebody who is defeated or it is like a crab who's cornered and therefore it's making its last brave stand.

So -- so while -- so, therefore -- again, I repeat, while the threat or the strength has declined, it is now on a tactical offense to make up for the strategic losses that is (UNINTELLIGIBLE).

BLITZER: What can U.S. allies like the Philippines do together with the United States to significantly reduce, if not eliminate this threat from international terrorism? ARROYO: Because terrorism is now a transnational phenomenon, it is important that we also approach it in a transnational manner, and the most important way is to exchange information and intelligence and also to be able to cut the networks of the terrorist cells wherever they may be found. So this is very important.

The fight against terrorism is not conventional warfare. It is not so much moving troops all over the place. It is really a fight of intelligence and copying the networks.

BLITZER: The Abu Sayyaf terrorists in the Philippines, they've taken out their vengeance mostly against Philippine target, other targets, but not U.S. targets. Would they, together with al Qaeda, based on the intelligence that you have, go after U.S. targets in the Philippines?

ARROYO: If they could, perhaps, but what we've done is that we have -- we have brought them to a very defensive posture.

What we have done is that we are actively seeking them out and rooting them out from their terrorist lairs. So even tactically now, they are on the defensive because the Philippine military is in a strong offensive at want moment.

BLITZER: There was some controversy over how much of a role the U.S. military should play in the Philippines in fighting together, with your military, these terrorist? Have you and President Bush worked out an acceptable arrangement, acceptable to your country as well as to the Pentagon?

ARROYO: What President Bush said yesterday in his press conference is America will help the Philippines upon my request and in the manner in which I want it to be done in accordance with our constitution.

Now our technical people will be defining the limits of our constitution in accordance with the language that this is also known and used by the Pentagon authorities. So this is where we are now. It's work in progress.

BLITZER: So basically, so far, right now you can have joint training exercises. They can serve as sort of advisers, but you're not going to let U.S. military forces actually go out there and fight and launch offensive mission against terrorists? Is that where it stands right now?

ARROYO: That's right, because in any case, when you're fighting a transnational threat like terrorism, the best tool that we should help one another with is the tool of intelligence and exchange of information.

BLITZER: What's next on the front? What's the most important thing that you and the United States, other allies, can do right now to defeat this threat?

ARROYO: We cannot underestimate the importance of exchanging information and intelligence and also try to cut off the money trail from one terrorist cell to another across borders.

BLITZER: The money trail is still flowing to Osama bin Laden and al Qaeda? Is that what you're suggesting?

ARROYO: What I'm saying is that there is still movement of money from across borders and this is what -- what makes these -- this contributes to makes the threat of terrorism a transnational threat. That's the connection among the cells. And therefore, that has to be stopped and interdicted.

BLITZER: President Arroyo, welcome to the United States. Thanks very much for joining us. We'll continue this conversation on another occasion.

ARROYO: Thank you.

BLITZER: You may know him as one of the most famous composers and producers in American music, but Quincy Jones has another passion and he's taking it to Washington. You'll find out what it is when I speak with him live. That's coming up.

Plus, can the best player in women's golf outgun the top men? We'll find out soon enough. We'll hear from Annika Sorenstam in a moment.

But first, today's "News Quiz."

(BEGIN VIDEOTAPE)

BLITZER: (voice-over): In the battle of the sexes tennis match, Billie Jean King answered a challenge by Bobby Riggs in 1973 and beat him. How did she win? Straight sets? Split sets? Tiebreaker? The answer coming up.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

BLITZER: (voice-over): Earlier we asked, in the battle of the sexes tennis match, Billie Jean King answered a challenge by Bobby Riggs in 1973 and beat him. How did she win? The answer: straight sets. The final score: 6-4, 6-3, 6-3.

(END VIDEOTAPE)

BLITZER: One of the most anticipated golf matchups in the history of the sport is beginning on Thursday. That's when Annika Sorenstam becomes the first woman in 58 years to play I men's PGA Tour event.

At her news conference at the Colonial Country Club in Fort Worth, Texas, Sorenstam talked about why she's playing in the tournament.

(BEGIN VIDEO CLIP)

SORENSTAM: My No. 1 is to always be a better player and I'm looking for ways to get better and I believe inside that I can still be a better player and, you know, I push myself in the gym. I push myself on the golf course and now I get an opportunity to play against the best men in the world. I figured this would really test me and this would push me to work harder and also play under tough circumstances and that's what I call a test -- to see if I can handle everything and also see if I can play the best game under a really tough circumstances.

(END VIDEO CLIP)

BLITZER: Tough circumstances, indeed. For the first two rounds, by the way, Sorenstam will play with two Tour rookies, Dean Wilson and Aaron Barber.

We'd like to hear directly from you on this subject. Here's your chance to weigh in on Annika Sorenstam's controversial debut on the PGA Tour. E-mail us your questions at wolf@cnn.com. We'll read your comments during our debate tomorrow during the noon hour, noon eastern, 9:00 a.m. Pacific.

He's one of the most influential people in the recording industry, and also well known for his charitable works. Now Quincy Jones is expanding his effort on behalf of children. He is joining me here live to talk a little about that and other subjects. Quincy, welcome to Washington. What are you doing for children now?

QUINCY JONES, MUSICIAN: We have just made a formal alliance to join up with the Children's National Medical Center with my foundation, Listen Up, and it's one of the most exciting things I have ever been involved with. Specifically, the (UNINTELLIGIBLE) medicine, which is with ultrasound, and telecom, communication back to the central modem, and injury anywhere in the world, any ghetto or even subsaharan (ph) area, and they can have (UNINTELLIGIBLE) with the ultrasound, they pick up the sonogram and transmit it to...

BLITZER: Basically, they're using the Internet, they're using the Web to kind of try to transfer this kind of information.

JONES: That's right.

Diagnosis on the ground and consultation. We hope within a couple of years we'll have robotronics so we can do ultrasupic (ph) surgery from 10,000 miles away. I think it's one of the most incredible uses of technology that we have access to in a long time.

BLITZER: So a kid who's not going to get good medical attention in some remote area, whether here in the United States or around the world, is only basically a phone line, if you will, away from getting a better kind of information.

JONES: Exactly. And I just had arthroscopic surgery on my rotator cuff and my knee with meniscus (ph), and one of the first little holes they make is with fiberoptic, and that transfers it all to a television screen, and that can be 10,000 miles away, and it's remarkable.

BLITZER: You just told me you lost 25 pounds.

JONES: Yes.

BLITZER: What motivated you to do it, and how did you do it?

JONES: I saw "USA Today," and it said "Terror in the Tummy," it said anybody who had over a 44 waistline was headed for diabetes, and so I headed straight for Dean Ornish, and Dean Ornish told me how to do it, and what really -- what it means is eating all of the things that I don't like and leaving alone the things I love.

BLITZER: You know, it's not easy.

JONES: That's what it's about.

BLITZER: Twenty-five pounds, relatively easy, the next 25 could be a little bit more difficult.

JONES: No, I think we're on a good track now, because psychologically I had it stored up down there, I understand if you take just a little bit. I always thought if it was good, 10 times would make it 10 times as good.

BLITZER: I know Dean Ornish. He's a good man. He's got a good program. Let's talk a little about two of your friends. Luther Vandross and Barry White, they're both, as all of our viewers know right now, they're very sick. What can you tell us about them?

JONES: They're very, very -- I've been keeping up through Valerie Simpson and (UNINTELLIGIBLE) with Luther, who I know has had a tracheotomy and he's in an oxygen tent, and had a brain operation, too. And again, it may have come from a weight situation. I don't know, I wouldn't want to guess. Barry White, I mean, he's a very close friend. In my speech at the Kennedy Center last night, I asked everybody in the audience to pray for him as we've been doing all the time. Barry had a stroke, too.

BLITZER: And what are you hearing -- I mean, he's a legend, everybody loves Barry White, Luther, too.

JONES: The best. Absolute best, and I ask everybody to pray for them because they're some people who have given back a lot to the world.

BLITZER: You know, everybody remembers "We Are the World" that you were responsible for that. You were way ahead of your time on that video. Is there any effort now under way to create a new "We Are the World" kind of video that might do for us now what you did -- how many years ago was that?

JONES: That's 18 years or so.

BLITZER: So it's time for another one. JONES: I'm glad you asked that, because 24th and Rome, we have something that I is astounding. We're going to have 60 mayors there with the children from all the conflict areas, from Rwanda, Palestine and Israel (UNINTELLIGIBLE) together, (UNINTELLIGIBLE) from Sarajevo and Belgrade, the Catholics and the Protestants in Ireland, and we'll have Shimon Peres and Abu Allah (ph) who is the Palestinian government, and it's a forum for children called We Are the Future, and I am so excited.

BLITZER: But to put together a bunch of recording artists like you did 18 years ago, it's time to hear that kind of music again, come up with the...

JONES: We might do that next year. This one right now is for the children. Children are going to do all the events and everything else, and the mayors and Jim Wolfensohn from the World Bank and everything else, we are putting our infrastructure together, and all the piazzas of Rome, and so on the 24th you will see 1,000 people marching to the piazza (UNINTELLIGIBLE), and it's going to be a pretty incredible night.

BLITZER: You watch "American Idol?"

JONES: Yes, sometimes.

BLITZER: Who's going to win?

JONES: I don't know, I've been out of the country for a while. You tell me.

BLITZER: I have no clue. Not embarrassed (ph) to say. Quincy, thanks for joining us.

JONES: Thank you.

BLITZER: Always a pleasure.

JONES: Pleasure.

BLITZER: Good luck with the Children's Hospital.

JONES: Thank you.

BLITZER: That's a hospital I'm very familiar with that hospital here in Washington.

Our Web question of the day is this, are you more or less concerned about terrorism in the United States since the Iraq war? Vote now at cnn.com/wolf. The results immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day. Remember, we've been asking you this: Are you more or less concerned about terrorism in the U.S. since the Iraq war? Look at this, 81 percent of you say more; 19 percent of you say less. As always, remember, this is not a scientific poll.

You can continue to vote, by the way, if you want on our Web page, cnn.com/wolf. Time to hear directly from you. Here are some of your e-mail on our segment on "Hitler" the miniseries. Chris writes this: "I find it incredible that some CBS affiliates chose not to air "Adolf Hitler" on prime-time TV due to negative effects on the young, yet are willing to air sitcoms full of sexual innuendoes, violent drama shows and mindless reality shows on a regular basis."

On women and golf, Gail writes this: "I can't believe how intimidated the male population seems to be about Annika playing in the tournament." and this from Jonathan: "It is not right that Annika is stealing a spot from someone who deserves to be in this tournament. If Annika can play in this tournament, I look forward to watching Tiger Woods wear a skirt and play in next week's LPGA tournament."

Let's take a quick look now at some headlines this hour.

(NEWSBREAK)

BLITZER: A reminder, you can always watch WOLF BLITZER REPORTS daily, 5:00 p.m. Eastern, 2:00 p.m. on the West Coast. I'll see you tomorrow noon and 5:00 p.m. Eastern. For the latest developments, let's turn it over to Lou Dobbs. He's standing by in New York.

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







Aired May 20, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: The nation's terror threat goes up to orange, and we're going into a holiday weekend. Whether you're traveling to the West, to the East, or to the Midwest, there's information you need to know, and you'll get it here.
WOLF BLITZER REPORTS starts right now.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The terror threat, code orange. Americans brace for more trouble abroad, but will the next attack come at home?

UNIDENTIFIED MALE: This change is based upon the recent terrorist bombings in Saudi Arabia and Morocco. The United States intelligence community believes that terrorists continue to plan attacks against targets in the United States.

BLITZER: A key ally battles an ally of al Qaeda. Is the U.S. doing enough to help? I'll ask Philipine President Gloria Arroyo.

Mad cow in Canada.

UNIDENTIFIED MALE: We have notified the embassies. The beef industry is also involved in this, as well. We've notified all of the embassies of our major trading partners.

BLITZER: The U.S. takes action.

The world's top female golfer tees off with the men. Annika answers the critics.

ANNIKA SORENSTAM, GOLFER: I'm curious to see how good my game is and how I will stand up to these guys.

BLITZER: And I'll ask music master Quincy Jones why he wants you to listen up.

(END VIDEOTAPE)

BLITZER: It's Tuesday, May 20, 2003. Hello from Washington. I am Wolf Blitzer reporting.

As Americans get ready for the busy Memorial Day weekend and the start of the summer travel season, the government is raising the nationwide terror alert level from yellow to orange, signaling a high risk of an attack. Following a wave of suicide bombings abroad, U.S. intelligence have picked up worrisome signs that this country may be the next terror target, and Homeland Security officials are warning that the same kind of tactics used abroad, namely car and suicide bombings against so-called soft targets, could be used here at home.

Let's begin with our CNN national security correspondent David Ensor -- David.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Wolf, it is those kinds of attack on soft targets that are so familiar in Israel, in India, in Spain, and for many years in Great Britain. That kind of attack that is driving this decision. U.S. officials fearing that sort of thing could, could happen here.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): The president's Homeland Security Council made the decision to raise the terror threat level index during a White House meeting amid signs al Qaeda may attempt additional attacks in coming days, attacks to follow on the bombings in Riyadh, Saudi Arabia, possibly attacks against targets in the United States.

ASA HUTCHINSON, UNDER SECRETARY OF HOMELAND SECURITY: The use of tactics similar to those that we have seen in recent terrorist attacks have to be considered. They cannot be discounted. Those would include use of small-armed equipped assault teams, large vehicle-borne explosive devices and suicide bombers. This is not to indicate this is going to happen in the United States, but when we see a pattern of activity overseas, directed at the United States targets, we certainly have to be aware that there remains that potential of use of those type of tactics here in the United States.

ENSOR: This is the fourth time since the system was created that the administration has raised the nation's alert status to high. Experts say it will likely remain high at least through Memorial Day and July 4th.

BRUCE HOFFMAN, RAND CORPORATION: Certainly terrorists like to hang their attacks on some symbolic event, and what more symbolic event, especially when you're at war with the United States, than either the day that memorializes our dead, or the day that we celebrate our own independence and our own freedom and indeed the values for which those who hate us are so against.

ENSOR: The decision to go on high alert is based on intelligence suggesting a threat to the U.S. that one senior official calls "reasonably spooky stuff." Though it is not specific as to where, when or how the terrorists might strike.

(END VIDEOTAPE)

ENSOR: Administration officials say the information is not specific, but it is credible enough to raise real concern. An FBI warning to local law enforcement says the attacks in Riyadh and Morocco could, quote, "be a prelude to an attack in the United States." The decision is a signal to state and local law enforcement to increase their vigilance against terror and their protection of key installations and large gatherings, especially those since officials say this time that they fear these attacks on soft targets could be attempted.

U.S. officials are saying as they monitor communications between suspected terrorists and interrogate others, the challenges to separate the wishful thinking and bluster from discussion of real plots that might be under way.

At this time, the president and his advisers apparently concluded they couldn't take a chance -- Wolf.

BLITZER: David Ensor with worrisome reporting. Thanks very much, David, for that report. Even before the terror alert was raised, the FBI was warning law enforcement agencies of heightened concerns, and in one area in particular there's been -- that's been especially hit hard by terrorism, security precaution are already being stepped up.

Let's's go live to New York City. That's where CNN's Maria Hinojosa is standing by. What's happening on the streets of New York, Maria?

MARIA HINOJOSA, CNN CORRESPONDENT: Well, Wolf, as you know, New York City has been at the orange level since September 11, so New Yorkers are pretty much used to this. But earlier today, the police commissioner and the mayor said that in light of what was happening around the world and the terror attacks in Saudi Arabia, that they were going to be changing things around a little bit. They immediately spoke about increasing the presence at bridges, like the Brooklyn Bridge, at tunnels. They said that they were going to increase plainclothed officers at sensitive locations. They were going to have uniformed officers more in the subways.

They said that in general, you might be able to see some of this, but you might not. They're calling this the surge effect, that sometimes you'll be able to see this but sometimes you won't. They say that everybody is working on this, though.

Now, earlier today, just a few minutes ago, Governor George Pataki also spoke about this, again repeating what Mayor Bloomberg said, that there is no specific credible threat against New York City or the state, but he did say that what they were going to be doing is, again, increasing police and National Guard throughout the state, at critical locations like transportation centers, infrastructure sites, power plants, commuter railroads, and certainly on the border between New York and Canada.

And also he spoke about this being a very important weekend in New York. It's called "fleet week," when the large boats come with their sailors and they all pour into the city. Let's hear what he had to say.

(BEGIN VIDEO CLIP)

GOV. GEORGE PATAKI (R), NEW YORK: This is fleet week, and this is Memorial Day weekend. And people should go about their lives. People should thank those who come into the city for fleet week. People should plan to have respectful celebrations on this Memorial Day weekend, but be vigilant and be alert.

(END VIDEO CLIP)

HINOJOSA: Now, what we also know across the country, different cities doing other things. We know that in San Francisco, they have increased -- they said that they will be double-checking the Golden Gate Bridge, and that they will be closing certain access areas below the Golden Gate Bridge. And we also know, though, that other cities, they are staying at the same level. We know that in Houston, Detroit there has been no change, because they've already worked into their policing to be prepared for these kinds of terror threats -- Wolf.

BLITZER: Maria Hinojosa in New York City. Thanks very much, Maria, for that report.

So is al Qaeda back in business, and is the United States ready to face a renewed, perhaps different kind of terror threat? Joining me now is John Hulsman of the Heritage Foundation, an expert on international security and the war on terrorism. John, thanks very much for joining us. Is al Qaeda back in business?

JOHN HULSMAN, HERITAGE FOUNDATION: Oh, I think they are. I mean, there's no doubt that al Qaeda is best thought of as a multinational corporation, albeit it an evil one. What we've done in Afghanistan is knock out the central office, but all the branch offices who have money, years of planning in advance and a desire that all multinationals do, to look to those who support it to do well. They must be relevant. They must continue to attack targets and be seen as the Saladdin figure that bin Laden wants to be and stand up to the West. I think that's precisely why we see this series of attacks.

BLITZER: So in recent days, we've seen these soft targets attacks, suicide bombings in Riyadh, in Casablanca. Could that happen actually in the United States? There are plenty of soft targets, as we all know.

HULSMAN: I think you're absolutely right. I mean, I think it's harder for them, and in fact, one of the signs that things in the war on terror are going pretty well is that they're being forced to attack soft targets in places like Africa, Saudi Arabia, which don't have really the homeland security kind of imprimatur that we do here in the United States. But could they find soft targets in the United States? Yes. And would that be a huge public relations victory for them? Absolutely. Certainly, I would imagine, they'll be trying to do just that.

BLITZER: So it was justified for the administration to go up to this higher level of alert, but what should that mean for our viewers who want to go traveling this summer, especially this Memorial Day weekend? Should they reconsider their plans?

HULSMAN: No, I don't think so. I mean, I think the comment made in your report that you can't let the terrorists win. You have to go on about your lives, and I think that means that we all have -- we're sensible. We look out for things that are suspicious. We report them when perhaps in the past we wouldn't have. But I think we have to live our lives; otherwise the terrorist do win. I don't think that there's any credible, hard evidence of a specific target to stay away from. I think we all just have to be more vigilant. I think that's the price of living in the times we're in.

BLITZER: When I heard Governor Pataki of New York speak just a little while ago, when I heard Asa Hutchinson of the Homeland Security Department speak, they both made a point that they've made in the past, but it seems to be a little bit harder hit right now, namely if you, an average citizen, suspect something going to, report it right away to local law enforcement. Did you get that sense that they're asking people for help?

HULSMAN: I think they are, and I did get that sense when I was listening to that as well, and I think that's what people should do. In the past, when you saw suspicious things before September 11, you'd shrug and go on about your day. I think now that part of our challenge as citizens, to be responsible citizens, is to report these suspicious things. Better to be safe than to be sorry, and I think that's very good advice.

BLITZER: And when you take a look right now at al Qaeda, we use that term, but there are a lot of groups that are associated, sympathetic with al Qaeda, who may have their own agenda, but blame it on al Qaeda.

HULSMAN: You bet. I mean, al Qaeda finances and uses these group, but they also use al Qaeda. They can get things done. For instance, Bali boming. Al Qaeda worked with Filippino groups that were directly al Qaeda, but were sympathetic to what was going on there. There are all kinds of subsidiary groups in the multinational corporation that and indeed do al Qaeda's bidding, and you're beginning to see some of that. They link up with the groups because they can't do things on their own.

BLITZER: For example, the other day they raised questions about Hamas, Hezbella.

They've been isolated in the Middle East but could they make a move on U.S. soil?

HULSMAN: I think they couldn't yet. I think, actually, the thing that gives al Qaeda distinctiveness is they can strike anywhere in the world and that they plan in advance -- years in advance so they have the money to back up what they do. It's only when you go to a region of these countries their in that al Qaeda teams up with them. So not yet but something to watch out for.

BLITZER: John Hulsman, of the Heritage Foundation, thanks for your expertise.

HULSMAN: Pleasure.

Here's your turn to weigh in on the story. Our web question of the day is this, "Are you more or less concerned about terrorism in the U.S. since in the Iraq war?"

We'll have the results later in this broadcast. You can vote at cnn.com/wolf. While you're there, I'd like to hear from you. Send me your comment, I'll try to read them on the air each day at end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

Mad Cow concerns coming up, Agriculture Secretary Ann Veneman joins us on here take on the discovery of the disease in Canada.

How worried should we be here in the United States?

And crisis in the cockpit. The last moments played out in voice recordings from Air Midwest flight 5481.

And later, the war on terror. The Philipine President Gloria Arroyo, she'll join me live. She'll weigh in on her thoughts on her country's role.

(SINGING)

BLITZER: And one of the men behind "We are the World" is trying to make the world a better place again. I'll speak live with Quincy Jones. That's coming up.

(COMMERCIAL BREAK)

BLITZER: The United States takes precautionary measures to guard against the threat of Mad Cow Disease. It's now hit North America. The first time in 10 years. I'll speak live with the U.S. Agriculture Secretary Ann Veneman. That's coming up next on WOLF BLITZER REPORTS.

(COMMERCIAL BREAK)

BLITZER: We'll have much more on the terror threat going up. That's coming up.

We also have more on other breaking developments, but there is a significant story happening in Canada right now. Canadian officials have confirmed the first case of Mad Cow Disease in that country since 1993. Although rare the human form of the disease is especially frightening. Our medical correspondent Elizabeth Cohen is joining us now in the CNN center in Atlanta.

This is a scary story, Elizabeth.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Well, it is a scary story in a way, Wolf, you have to take into consideration this is just one cow and there are many, many cows, obviously, in Canada and the United States. But still this news today had a big impact in the U.S. and in Canada.

(BEGIN VIDEOTAPE)

COHEN (voice-over): This is what Mad Cow Disease looks like. Until now, the U.S. has been Mad Cow free and officials want to keep it that way. So now the U.S. Department of Agriculture is barring Canadian beef from entering the United States. The action taken after a cow in Alberta, Canada, tested positive for Mad Cow Disease.

SHIRLEY MCCLELLAN, CANADIAN AGRICULTURE MINISTRY: The important thing is this animal was not allowed into the food chain. The system worked. The preventionial inspector took the animal, condemned it and then all of the necessary steps which are in place for this very reason occurred.

COHEN: Mad Cow disease affects the brain and nervous system in cattle. It's rare in Canada. This their is the second case, the first was in 1993. But in the 1990s the disease reaked havoc in Britian. Farmers had to slaughter 3.7 million infected cattle. Though it's rare humans con contract the disease by eating infected meat. In the last 15 years more than a hundred people have been infected worldwide.

In an exclusive report, CNN brought you the story of Charlene, the first story living in America, with the human form of Mad Cow Disease. She contracted it while living in England. The United States does not import beef from England or from any of the 21 other countries who have had infected cattle. Still the U.S. feels the ripple effect. Just the thought of Mad Cow on the North American continent sent these related stocks falling today, McDonald's, Wendy's, Outback Steak and Tyson Foods, the biggest meat processor saw a slide. And now in Canada, the investigation is on.

UNIDENTIFIED MALE: The focus must be on determining how this one cow became infected.

COHEN: That won't be easy. Cows get sick from eating tainted feed, but the incubation period is two to eight years, so it will be difficult to trace exactly what this cow ate and when.

(END VIDEOTAPE)

COHEN: The entire herd that this cow belonged to will be slaughtered and the meat will not be allowed to enter the food supply -- Wolf.

BLITZER: Elizabeth Cohen with the latest on Mad Cow Disease in Canada. Thank you very much, Elizabeth, for that report.

The U.S. Agriculture Department has temporarily banned the import of Canadian beef. Here to talk about that and more is the Secretary of Agriculture Ann Veneman.

Secretary, thank you very much for joining us. This sounds very, very concerning. When we spoke the last time you were deeply concerned about one incident in the United States. This isn't the United States, it's Canada. How concerned should Canadians be and Americans?

ANN VENEMAN, AGRICULTURE SECRETARY: Well, this is an isolated incident, as you say, and I think the Canadians have handled it very appropriately. They have isolated the cow and it has not entered the food chain in any way. The herd in which it was a part has been isolated, will be slaughtered and will not enter the food chain. We have taken a temporary measure to not allow any cattle or beef products to enter into the U.S..

We think that until the investigation is complete this, is an appropriate step. We are sending people up to engage in the investigation with the Canadians, but in the meantime we continue to have a very safe meat supply, and I would not discourage anyone right now from eating meat. In fact, I would very much encourage people to feel very, very safe about their food supply.

BLITZER: Here in the United States as well as in Canada?

VENEMAN: Absolutely. I think this incident shows that this system works that we continue to test cattle. This was an older cow that had some disease problems, was not put into the food chain, was quickly taken out. And I think it shows that our system of strong surveillance in North America does work and that our food supply is safe.

BLITZER: (UNINTELLIGIBLE) herds of cattle move back and forth across the U.S.-Canadian border, this incident was in Alberta, right?

VENEMAN: That's right.

BLITZER: The Providence of Alberta.

Do we know if this herd ever had spent time in the United States?

VENEMAN: That will be part of the investigation. This cow was eight years old. There is a lot of movement. We have a fairly integrated North American market in the United States and Canada. We trade a lot of cattle as well as we slaughter a lot of beef on both sides of the border. And so we will be part of the investigation, the Canadians and the United States Department of Agriculture have been working very closely together and we'll continue to do that. But again I want to reiterate that at this time we see no reason for any consumer to be concerned about the safety of the food supply. And in fact, I intend to eat a steak tonight.

BLITZER: Has there been any incident of Mad Cow Disease affecting cattle in the United States as far as you know?

VENEMAN: No.

BLITZER: Ever. Because I remember the last time you spoke you were deeply worried that one incident could spread, and that's why this is so important to protect the U.S. cattle industry, if you will.

VENEMAN: Actually, I think this is an important distinction because I believe the last time we spoke we were concerned about Foot- and-Mouth Disease which is a completely different issue. It's a different disease. This is a disease that does not quickly spread among cattle. Foot-and-Mouth Disease is a contagious cattle...

BLITZER: That's your real nightmare, Foot-and-Mouth Disease. VENEMAN: That's are real nightmare. And that's a different disease that's very contagious among cattle and it does not affect the human food safety at all. And so this is one of the things that the consumers have a difficult time understanding is the difference between those, but there they're really very different, Foot-and-Mouth Disease and Mad Cow Disease.

BLITZER: How long will it take to find out how this one cow got this disease?

VENEMAN: I think it's too early to say that. We are going to, as I said, be sending people up to Canada to work with their veterinarians up there. We will make all resources available. We will do everything we can to help them track back this particular animal and to try to make a determination as to what happened here. As I said, we believe the Canadians are taking all appropriate precautions in quarantining this herd, and slaughtering it and testing it all. And we'll know a lot more after that's done.

BLITZER: Enjoy your steak tonight.

VENEMAN: Thank you very much.

BLITZER: Secretary Ann Veneman, thanks very much. We'll continue this conversation.

And we're standing by -- much more developments, more news coming up on the terror threat. That's gone up from yellow to orange, from elevated to high.

We're standing by for a news conference. The major of Los Angeles is speaking out. We'll have live coverage of that -- as well as other news, including this.

The crisis in the cockpit -- that's coming up.

Painting the picture of the last minute of a doomed Air Midwest flight.

And later, from record producer to social activist -- Quincy Jones talks to me live about his new project, working with children.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Code orange. We are now heightened at the high terror alert level. We've gone up from yellow to orange. We're having much more coverage on that coming up -- including details, what that means to you, especially approaching the Memorial Day weekend.

But first, let's get some other stories.

Transcripts of cockpit recordings of a doomed Air Midwest flight reveal a chilling picture of what was going just seconds before the plane crashed in January. The National Transportation Safety Board released the transcripts today at a public hearing on the crash in Charlotte, North Carolina which killed all 29 people on board.

CNN's Patty Davis is joining us live from Reagan National Airport -- just outside Washington -- with the latest.

This is pretty chilling material you got there, Patty.

PATTY DAVIS, CNN CORRESPONDENT: It is chilling, Wolf, and that flight lasted just 37 seconds, but almost from the start the pilots knew something was drastically wrong.

(BEGIN VIDEOTAPE)

DAVIS (voice-over): Out of the wreckage of Air Midwest flight 5481, the plane's cockpit voice recorder captures the pilot's panicked last moment.

As the plane climbs too steeply, Captain Katie Leslie tries to push the nose down. It doesn't respond.

"Oh, my God," she says and declares an emergency.

A child yells "Daddy" as warning horns sound and the plane stalled.

Captain Leslie shouts, "Pull the power back."

Six seconds later, she again screams, "Oh my God," as the plane plunges to the ground near the runway. All 21 onboard killed.

The transcript of the black box -- released by the National Transportation Safety Board, which is holding two days of hearings on the crash.

ELLEN ENGLEMAN, CHAIRWOMAN, NATIONAL TRANSPORTATION SAFETY BOARD: There are several issues on the table. On the mechanical issues. (UNINTELLIGIBLE) balance issues. All of the factors that we have to take into consideration.

DAVIS: The cockpit voice recorder shows the pilots discussed the plane's weight extensively.

Co-pilot Jonathan Gibbs joking "He's probably looking at our tail, like about ready to hit the ground right now with all the bags back there."

But in the end, the decision was made to take all 19 passengers and 31 bags. Also of concern, the Beach 1900 had undergone maintenance two days before the crash. The NTSB says the plane's elevator cables were improperly rigged, which would have made it hard to control.

MICHAEL GOLDFARB, FORMER FAA CHIEF OF STAFF: For both takeoff and landing, the load and balance of aircraft is critical. When you couple that with the maintenance problems, then you're creating a deadly mix.

DAVID: While the NTSB is looking for answers, so is the family of Co-pilot Gibbs.

UNIDENTIFIED MALE: I'm sure he performed well. He was a great pilot, and they did everything they could have done.

(END VIDEOTAPE)

DAVIS: As a result of the crash, the FAA raises passenger weight estimate by 10 pounds to account for the expanding American waistline.

Now using those new weight estimates, the NTSB says that this Air Midwest flight would have been badly overweight and would have to take off passengers, baggage, or fuel to fly safely -- Wolf.

BLITZER: Patty Davis at Reagan National Airport with an important story. Patty, thanks very much.

A handful of U.S. allies are fighting on the front lines of the war on terror. One of them joins me just ahead.

I'll speak live with the Philippine's president, Gloria Arroyo.

And composer, producer, philanthropist Quincy Jones is all three and he'll also be with me live to talk about what he's doing for children's hospitals' care.

And can a woman really compete with men in a sport that thrives on tradition? We're about to find out. Annika Sorenstam's bid to outduel the men in a top golf event.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. You're looking at live pictures of the mayor of Los Angeles James Hahn. He is briefing the public about steps that Los Angeles is taking in light of the word from Washington, the federal government raising the terror threat level from Yellow to Orange, from Elevated to High. The Los Angeles mayor saying there will be increased patrols. They'll be monitoring Los Angeles International Airport.

He is also asking the public at large in L.A. to notify law enforcement, to be vigilant if there's anything, anything suspicious at all. Los Angeles Mayor James Hahn. We'll continue to monitor what he has to say. We'll come back to him if there are more developments there.

Welcome back to our continuing coverage. Also coming up, Quincy Jones on a mission other than music. We'll speak to him live. That's coming up.

First let's check some other late-breaking headlines at this hour. (NEWSBREAK)

BLITZER: Turning again to our top story, following a wave of terror bombings abroad U.S. officials are with worried that this country may indeed be the next target. There's been an increase in what's called chatter or intelligence intercepts of suspected communications, and one official is calling all of this "spooky stuff." That's a direct quote. That led the federal government today to raise the nationwide terrorism alert.

(BEGIN VIDEO CLIP)

HUTCHINSON: This afternoon the Department of Homeland Security in consultation with the Homeland Security Council raised the national threat level from Elevated to High risk of a terrorist attack.

This change is based upon the recent terrorist bombings in Saudi Arabia and Morocco, also in conjunction with intelligence reports concerning anti-U.S. terrorist group intentions. The United States intelligence community believe that terrorist continue to plan attacks against targets in the United States. And for this reason the alert level has been raised as I mentioned.

This afternoon Secretary Ridge spoke with governors and mayors, and he continues to have those discussions with them, as he asked them deploy additional police forces to review their own security measures. And particularly discussed with them the venues in which there would be large public gatherings.

For all Americans we recommend that you continue with your plans for work or leisure. The purpose of this announcement of course, is to alert our law enforcement community primarily so that they can implement their security measures. And then, secondly, to advise the American public of this increased alert level so that they can themselves be alert and vigilant because vigilance, in it of itself, is a deterrent to terrorist activity.

(END VIDEO CLIP)

BLITZER: Asa Hutchinson, the undersecretary for Homeland Security speaking about two hours ago here in Washington.

A heightened terror threat here in the United States. Intelligence about terrorist capabilities overseas. I'll discuss the big picture in the war on terror live with the visiting president of the Philippines, Gloria Arroyo. She's standing by at Blair House here in Washington.

And the legendary Quincy Jones talks about his passion for helping children. My live interview with him. That's also coming up.

(COMMERCIAL BREAK)

BLITZER: Here in Washington -- excuse me -- President Bush's praising Philippine President Gloria Arroyo as an unwavering partner in the war on terrorism. Mrs. Arroyo is on a state visit and held talks with the president yesterday and afterwards was honored at a state dinner, just the third leader to receive such treatment since President Bush has been in office.

President Arroyo is joining us now live from Blair House here in Washington, the official residence for visiting leaders.

Thanks very much, madam president, for being with us. How much of a problem is this terror threat to you in the Philippines, specifically from Abu Sayyaf this group associated with al Qaeda?

GLORIA MACAPAGAL ARROYO, PHILIPPINE PRESIDENT: When September 11 happened we had already been contending with a terrorist threat of Abu Sayyaf.

Now Abu Sayyaf has lost their last hostages because the last two hostages escaped from their clutches while their guards were sleeping and it was raining hard so they could not chase after them with footprints. So I would say that this is a threat that has lost a lot of its clout.

Nonetheless, we have seen from the alert that it's happening now here in the United States. While there's been much progress on terrorism, there's still much work to do and it is very important that the countries work together in order to address this threat together.

BLITZER: Madam president, is al Qaeda making a comeback right now? How significant of a threat is this terror organization, not only to you and your people in the Philippines, but around the world including here in the United States?

ARROYO: What I understand is that al Qaeda is only half as strong as it used to be.

Nonetheless, if that one-half is still there, then the work is not yet over. I believe that al Qaeda is on a strategic retreat and that is a tactical offense.

BLITZER: When you say strategic retreat, they're waiting, they're trying to regroup, but they will resurface with a vengeance? Is that what you're suggesting?

ARROYO: They're on a strategic defensive. In other words, they have a strategic setback so they're going on a tactical offensive. It is -- it's like the death throes of somebody who is defeated or it is like a crab who's cornered and therefore it's making its last brave stand.

So -- so while -- so, therefore -- again, I repeat, while the threat or the strength has declined, it is now on a tactical offense to make up for the strategic losses that is (UNINTELLIGIBLE).

BLITZER: What can U.S. allies like the Philippines do together with the United States to significantly reduce, if not eliminate this threat from international terrorism? ARROYO: Because terrorism is now a transnational phenomenon, it is important that we also approach it in a transnational manner, and the most important way is to exchange information and intelligence and also to be able to cut the networks of the terrorist cells wherever they may be found. So this is very important.

The fight against terrorism is not conventional warfare. It is not so much moving troops all over the place. It is really a fight of intelligence and copying the networks.

BLITZER: The Abu Sayyaf terrorists in the Philippines, they've taken out their vengeance mostly against Philippine target, other targets, but not U.S. targets. Would they, together with al Qaeda, based on the intelligence that you have, go after U.S. targets in the Philippines?

ARROYO: If they could, perhaps, but what we've done is that we have -- we have brought them to a very defensive posture.

What we have done is that we are actively seeking them out and rooting them out from their terrorist lairs. So even tactically now, they are on the defensive because the Philippine military is in a strong offensive at want moment.

BLITZER: There was some controversy over how much of a role the U.S. military should play in the Philippines in fighting together, with your military, these terrorist? Have you and President Bush worked out an acceptable arrangement, acceptable to your country as well as to the Pentagon?

ARROYO: What President Bush said yesterday in his press conference is America will help the Philippines upon my request and in the manner in which I want it to be done in accordance with our constitution.

Now our technical people will be defining the limits of our constitution in accordance with the language that this is also known and used by the Pentagon authorities. So this is where we are now. It's work in progress.

BLITZER: So basically, so far, right now you can have joint training exercises. They can serve as sort of advisers, but you're not going to let U.S. military forces actually go out there and fight and launch offensive mission against terrorists? Is that where it stands right now?

ARROYO: That's right, because in any case, when you're fighting a transnational threat like terrorism, the best tool that we should help one another with is the tool of intelligence and exchange of information.

BLITZER: What's next on the front? What's the most important thing that you and the United States, other allies, can do right now to defeat this threat?

ARROYO: We cannot underestimate the importance of exchanging information and intelligence and also try to cut off the money trail from one terrorist cell to another across borders.

BLITZER: The money trail is still flowing to Osama bin Laden and al Qaeda? Is that what you're suggesting?

ARROYO: What I'm saying is that there is still movement of money from across borders and this is what -- what makes these -- this contributes to makes the threat of terrorism a transnational threat. That's the connection among the cells. And therefore, that has to be stopped and interdicted.

BLITZER: President Arroyo, welcome to the United States. Thanks very much for joining us. We'll continue this conversation on another occasion.

ARROYO: Thank you.

BLITZER: You may know him as one of the most famous composers and producers in American music, but Quincy Jones has another passion and he's taking it to Washington. You'll find out what it is when I speak with him live. That's coming up.

Plus, can the best player in women's golf outgun the top men? We'll find out soon enough. We'll hear from Annika Sorenstam in a moment.

But first, today's "News Quiz."

(BEGIN VIDEOTAPE)

BLITZER: (voice-over): In the battle of the sexes tennis match, Billie Jean King answered a challenge by Bobby Riggs in 1973 and beat him. How did she win? Straight sets? Split sets? Tiebreaker? The answer coming up.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

BLITZER: (voice-over): Earlier we asked, in the battle of the sexes tennis match, Billie Jean King answered a challenge by Bobby Riggs in 1973 and beat him. How did she win? The answer: straight sets. The final score: 6-4, 6-3, 6-3.

(END VIDEOTAPE)

BLITZER: One of the most anticipated golf matchups in the history of the sport is beginning on Thursday. That's when Annika Sorenstam becomes the first woman in 58 years to play I men's PGA Tour event.

At her news conference at the Colonial Country Club in Fort Worth, Texas, Sorenstam talked about why she's playing in the tournament.

(BEGIN VIDEO CLIP)

SORENSTAM: My No. 1 is to always be a better player and I'm looking for ways to get better and I believe inside that I can still be a better player and, you know, I push myself in the gym. I push myself on the golf course and now I get an opportunity to play against the best men in the world. I figured this would really test me and this would push me to work harder and also play under tough circumstances and that's what I call a test -- to see if I can handle everything and also see if I can play the best game under a really tough circumstances.

(END VIDEO CLIP)

BLITZER: Tough circumstances, indeed. For the first two rounds, by the way, Sorenstam will play with two Tour rookies, Dean Wilson and Aaron Barber.

We'd like to hear directly from you on this subject. Here's your chance to weigh in on Annika Sorenstam's controversial debut on the PGA Tour. E-mail us your questions at wolf@cnn.com. We'll read your comments during our debate tomorrow during the noon hour, noon eastern, 9:00 a.m. Pacific.

He's one of the most influential people in the recording industry, and also well known for his charitable works. Now Quincy Jones is expanding his effort on behalf of children. He is joining me here live to talk a little about that and other subjects. Quincy, welcome to Washington. What are you doing for children now?

QUINCY JONES, MUSICIAN: We have just made a formal alliance to join up with the Children's National Medical Center with my foundation, Listen Up, and it's one of the most exciting things I have ever been involved with. Specifically, the (UNINTELLIGIBLE) medicine, which is with ultrasound, and telecom, communication back to the central modem, and injury anywhere in the world, any ghetto or even subsaharan (ph) area, and they can have (UNINTELLIGIBLE) with the ultrasound, they pick up the sonogram and transmit it to...

BLITZER: Basically, they're using the Internet, they're using the Web to kind of try to transfer this kind of information.

JONES: That's right.

Diagnosis on the ground and consultation. We hope within a couple of years we'll have robotronics so we can do ultrasupic (ph) surgery from 10,000 miles away. I think it's one of the most incredible uses of technology that we have access to in a long time.

BLITZER: So a kid who's not going to get good medical attention in some remote area, whether here in the United States or around the world, is only basically a phone line, if you will, away from getting a better kind of information.

JONES: Exactly. And I just had arthroscopic surgery on my rotator cuff and my knee with meniscus (ph), and one of the first little holes they make is with fiberoptic, and that transfers it all to a television screen, and that can be 10,000 miles away, and it's remarkable.

BLITZER: You just told me you lost 25 pounds.

JONES: Yes.

BLITZER: What motivated you to do it, and how did you do it?

JONES: I saw "USA Today," and it said "Terror in the Tummy," it said anybody who had over a 44 waistline was headed for diabetes, and so I headed straight for Dean Ornish, and Dean Ornish told me how to do it, and what really -- what it means is eating all of the things that I don't like and leaving alone the things I love.

BLITZER: You know, it's not easy.

JONES: That's what it's about.

BLITZER: Twenty-five pounds, relatively easy, the next 25 could be a little bit more difficult.

JONES: No, I think we're on a good track now, because psychologically I had it stored up down there, I understand if you take just a little bit. I always thought if it was good, 10 times would make it 10 times as good.

BLITZER: I know Dean Ornish. He's a good man. He's got a good program. Let's talk a little about two of your friends. Luther Vandross and Barry White, they're both, as all of our viewers know right now, they're very sick. What can you tell us about them?

JONES: They're very, very -- I've been keeping up through Valerie Simpson and (UNINTELLIGIBLE) with Luther, who I know has had a tracheotomy and he's in an oxygen tent, and had a brain operation, too. And again, it may have come from a weight situation. I don't know, I wouldn't want to guess. Barry White, I mean, he's a very close friend. In my speech at the Kennedy Center last night, I asked everybody in the audience to pray for him as we've been doing all the time. Barry had a stroke, too.

BLITZER: And what are you hearing -- I mean, he's a legend, everybody loves Barry White, Luther, too.

JONES: The best. Absolute best, and I ask everybody to pray for them because they're some people who have given back a lot to the world.

BLITZER: You know, everybody remembers "We Are the World" that you were responsible for that. You were way ahead of your time on that video. Is there any effort now under way to create a new "We Are the World" kind of video that might do for us now what you did -- how many years ago was that?

JONES: That's 18 years or so.

BLITZER: So it's time for another one. JONES: I'm glad you asked that, because 24th and Rome, we have something that I is astounding. We're going to have 60 mayors there with the children from all the conflict areas, from Rwanda, Palestine and Israel (UNINTELLIGIBLE) together, (UNINTELLIGIBLE) from Sarajevo and Belgrade, the Catholics and the Protestants in Ireland, and we'll have Shimon Peres and Abu Allah (ph) who is the Palestinian government, and it's a forum for children called We Are the Future, and I am so excited.

BLITZER: But to put together a bunch of recording artists like you did 18 years ago, it's time to hear that kind of music again, come up with the...

JONES: We might do that next year. This one right now is for the children. Children are going to do all the events and everything else, and the mayors and Jim Wolfensohn from the World Bank and everything else, we are putting our infrastructure together, and all the piazzas of Rome, and so on the 24th you will see 1,000 people marching to the piazza (UNINTELLIGIBLE), and it's going to be a pretty incredible night.

BLITZER: You watch "American Idol?"

JONES: Yes, sometimes.

BLITZER: Who's going to win?

JONES: I don't know, I've been out of the country for a while. You tell me.

BLITZER: I have no clue. Not embarrassed (ph) to say. Quincy, thanks for joining us.

JONES: Thank you.

BLITZER: Always a pleasure.

JONES: Pleasure.

BLITZER: Good luck with the Children's Hospital.

JONES: Thank you.

BLITZER: That's a hospital I'm very familiar with that hospital here in Washington.

Our Web question of the day is this, are you more or less concerned about terrorism in the United States since the Iraq war? Vote now at cnn.com/wolf. The results immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: Here's how you're weighing in on our Web question of the day. Remember, we've been asking you this: Are you more or less concerned about terrorism in the U.S. since the Iraq war? Look at this, 81 percent of you say more; 19 percent of you say less. As always, remember, this is not a scientific poll.

You can continue to vote, by the way, if you want on our Web page, cnn.com/wolf. Time to hear directly from you. Here are some of your e-mail on our segment on "Hitler" the miniseries. Chris writes this: "I find it incredible that some CBS affiliates chose not to air "Adolf Hitler" on prime-time TV due to negative effects on the young, yet are willing to air sitcoms full of sexual innuendoes, violent drama shows and mindless reality shows on a regular basis."

On women and golf, Gail writes this: "I can't believe how intimidated the male population seems to be about Annika playing in the tournament." and this from Jonathan: "It is not right that Annika is stealing a spot from someone who deserves to be in this tournament. If Annika can play in this tournament, I look forward to watching Tiger Woods wear a skirt and play in next week's LPGA tournament."

Let's take a quick look now at some headlines this hour.

(NEWSBREAK)

BLITZER: A reminder, you can always watch WOLF BLITZER REPORTS daily, 5:00 p.m. Eastern, 2:00 p.m. on the West Coast. I'll see you tomorrow noon and 5:00 p.m. Eastern. For the latest developments, let's turn it over to Lou Dobbs. He's standing by in New York.

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