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CNN Wolf Blitzer Reports

Are al Qaeda Officials in Iran Calling the Shots?

Aired May 22, 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.


(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Today it's a drill. But what will tomorrow bring? Concerns that terrorists could strike in the immediate future. Are al Qaeda officials in Iran calling the shots?

Who's behind the explosion at Yale University?

UNIDENTIFIED MALE: We personally have evidence technicians from our major crime squad who are literally on hand and knee sifting through debris.

BLITZER: The search for clues and the motive.

Payday on the way. A $350 billion tax cut. Congress is ready to pass it, but when it will pass into your hands?

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We believe the more money people have in their pockets, the more likely it is somebody's going to be able to find work.

BLITZER: Surviving a plane crash. The odds are better than you think and this device may give you an even better chance.

And Annika in action. Round one. Can she hold her own with the guys?

ANNOUNCER: CNN live this hour, WOLF BLITZER REPORTS live from the nation's capital with correspondents from around the world. WOLF BLITZER REPORTS starts now.

(END VIDEOTAPE)

BLITZER: It's Thursday, May 22, 2003. Hello from Washington. I'm Wolf Blitzer reporting.

With the nation at Code Orange indicating a high threat level, officials are concerned that a terror attack could take place virtually at any time. In fact, some suggest we may be right in the middle of a 48-hour period of heightened danger.

CNN's Jeanne Meserve is tracking developments on the Homeland Security front. She's joining us now live from our Washington bureau. This 48-hour heightened period of danger, what's that all about, Jeanne?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: An accumulation of intelligence, Wolf, all put together when they looked at this matrix, they decided there was a threat in the immediate future though officials say there is no specific date mentioned in the intelligence.

One U.S. government official tells me there is a piece of intelligence which has a number on it which might be a date, but there is no month associated with the number and it's open to interpretation. They don't quite know exactly what they're dealing with.

They took that number, they look at where it falls on our calendar this month and where it falls on the Muslim calendar. They see a discrepancy, that may being for this 48-hour window that we've talking about.

But again, this information not verified and open to interpretation. But that's why this particular time period is of concern.

BLITZER: Jeanne, you've learned there was serious debate, if you will, underway within the Homeland Security Council before this decision to go up to the elevated (sic) level, the Orange level was agreed on?

MESERVE: That's right, I'm told there was a very healthy debate in the Homeland Security Council. There was a real desire to verify the intelligence that they were dealing with, that in a couple of points information was sent back to the analysts. They were told to take another look, try and piece things together a little bit different. After this extended debate, however, I'm told that there was a consensus on doing this.

And I should say that for the moment it's going to stay exactly where it is. I talked to an official a short time ago who said the intelligence chatter remains high at this point and there's no indication that al Qaeda's operational capabilities or planning activities have been disrupted that the point. So we'll stay at Orange, I'm told, at least through the Memorial Day weekend.

BLITZER: All right, Jeanne Meserve with the latest. Thanks very much, Jeanne.

And heading into this Memorial Day weekend, Americans are on alert from coast to coast. We asked people in three cities how they feel about the terror threat. Many are quite concerned, others are seemingly carefree.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The other day my husband was late coming in by train and we'd heard there was a problem with the trains going into New Jersey and I immediately thought it was something -- some kind of sabotage. UNIDENTIFIED MALE: I don't feel any heightened anxiety there. I think there's certainly an awareness and that people care, but they care about it extraneously.

UNIDENTIFIED FEMALE: I think there's a definite threat especially since these recent attacks in Morocco and in Saudi Arabia. And they may be, I feel, a prelude to what might happen here.

UNIDENTIFIED MALE: It doesn't affect my life at all. I travel. I still go where I want. I don't worry about it.

UNIDENTIFIED FEMALE: I think of getting on the plane Saturday morning and with the heightened security and everything. And you always think I'm sure there's poor people always felt it wouldn't happen to them. I think that's the way it is.

UNIDENTIFIED FEMALE: You have to be safe or whatever, but I guess the media is just trying to play it up a little bit too much for me.

(END VIDEO CLIP)

BLITZER: He planned and commanded the war to oust Saddam Hussein's regime in Iraq and the war against terrorism in Afghanistan. But despite success on the battlefield, today we have more confirmation that General Tommy Franks has apparently had enough of the U.S. Army, at least for now.

Let's go live to our senior Pentagon correspondent Jamie McIntyre. He's following these developments -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, what we have today is other news organizations catching up with what CNN reported ten days ago when we reported exclusively that General Tommy Franks had turned down after offer to become the Army Chief of Staff. That meant that he effectively was deciding to retire because his term is up at the beginning of July.

That said, however, he has not yet requested retirement and Defense Secretary Rumsfeld has not yet selected his replacement. So it is possible he could be asked to stay on a month or two more until a replacement is sought.

But at this point, Tommy Franks will be retiring, just a question of when. He has turned down an offer to take another job and stay in the Army -- Wolf.

BLITZER: I'm sure there will be plenty of opportunities for him in the private sector, including an important book that he has waiting to be written. Jamie McIntyre for us at the Pentagon. Thanks very much.

And checking headlines right now from Iraq, Americans ambushed. Here are pictures of the aftermath. The military says Iraqis west of Baghdad in Fallujah used a Rocket Propelled Grenade to attack a U.S. Army patrol. Army sources say U.S. troops returned fire, killing at least two Iraqis and captured five others.

South of Baghdad, Paul Bremer, the top U.S. administrator in Iraq visited a mass grave believed to contain thousands of Shi'ite Muslims killed after a 1991 revolt against Saddam Hussein. The mass grave is the largest found since U.S.-led forces overthrew the Iraqi leader last month. Iraqi doctors say about 2,000 of the 3,100 bodies have been identified.

And another capture to report this hour. The highest-ranking member of Saddam Hussein regime caught yet. Aziz Salih al-Numan, a former Ba'ath Party leader is number eight on the list of 55 most wanted Iraqis. American officials say al-Numan was one of nine top leaders the United States wants to see tried for war crimes.

And a major victory for President Bush. The U.N. Security Council today voted to end sanctions against Iraq. But what does that mean for Iraq and for everyone involved? CNN's Michael Okwu is joining us now live from the United Nations. He has the latest -- Michael.

MICHAEL OKWU, CNN CORRESPONDENT: Wolf, good afternoon. The United States and Great Britain will have broad U.N. authority to run Iraq until a democratically-elected government is in place. U.S. officials say much to the benefit of the Iraqi people.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Please raise the hand.

OKWU (voice-over): These raised hands mean sanctions are now lifted on Iraq.

JOHN NEGROPONTE, U.S. AMB. TO U.N.: After more than a decade of being frozen out of the world economy, it is time for the Iraqi people to benefit from their natural resources.

OKWU: The Iraqis will be able to pump, sell and deliver oil again, including some 8 million barrels waiting in a Turkish terminal. Since 1996 Iraq's oil has been sold under the U.N. Oil-For-Food Programme, but no one has had the legal authority to sell it since the war. The resolution gives the U.S. and Great Britain that right and the right to start using a billion dollars from the program to restore water supplies, build roads and housing and to meet hospital needs.

UNIDENTIFIED MALE: Equipment not available because of the sanctions. And so that the patients are still suffering and they're going to die because we didn't (UNINTELLIGIBLE) diagnose because there's no equipment.

OKWU: The U.N. is hoping the end of sanctions will pave the way towards self-suficency.

JAMES MORRIS, WORLD FOOD PROGRAM: Essentially Iraq produces about a third of the food it requires to feed its own population. There have been minimal investments in agriculture in the country. And my sense is that will change. OKWU: Ending sanctions means that ordinary Iraqi citizens can now receive money freely from friends and family abroad, some of the frozen assets will be returned to the country, and that regular commercial flights can resume.

(END VIDEOTAPE)

OKWU: Now the U.S. made concessions to allow this resolution to go through including a provision that would allow the Security Council to reconvene and to review this resolution within one year -- Wolf.

BLITZER: Michael Okwu at the United Nations, thanks very much. An important development happening there today that could affect dramatically, the sources -- the cause of peace, if possible, in Iraq.

Meanwhile, rattled nerves at Yale University. What caused the explosion some 24 hours ago? We'll get the latest from New Haven, Connecticut.

Also, get ready for payday. You want more money? You might be getting some more. Wait until you see how much Uncle Sam has in store for you if President Bush has his way.

And Annika in action. She has the moves. We're going live to the PGA golf tournament to see what made the men squirm today. Jim Nance of CBS Sports -- he'll join me live. We'll talk about Annika, golf, men and women.

And can you survive a plane crash? You're looking at pictures that may explain how to improve your odds.

First, our "News Quiz."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Which aircraft already use air bags? Virgin Atlantic? Air Canada? Black hawk helicopters?

The answer coming up.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: It's happening right now. Tragically, rescue workers in Algeria, many of them using their bare hands, are digging through mounds of rubble in a desperate attempt to find survivors from the country's worst earthquake in 20 years. The death toll already over 1,000 people, almost 7,000 others injured.

Joining us now on the phone from the capital, Algiers, CNN's Rym Brahimi.

This looks awful. The pictures devastating, Rym. How bad is it over there? RYM BRAHIMI, CNN CORRESPONDENT: Wolf, it's very bad outside of the Algerian capital, especially in the Algerian capital, it's quite bad in some of the poorer neighborhoods.

I just went around to see some buildings that have totally collapsed and this happened in mainly in a lot of the poor neighborhoods and residents are complaining that a lot should have been done before to make sure these buildings were stabilized because there were threats already before the earthquake took place. A lot of people died in some of those buildings and a lot of people injured.

I also visited a hospital in central Algiers where a lot of the injured have been brought in from the various parts of the east of Algeria, about 70 kilometers east of Algiers is where the epicenter was and from where a lot of the injured have been brought. Doctors there I spoke to said one of the most frequent injuries they're seeing -- there's been a lot of traumas, a lot of amputations and a lot of fractured limbs, in many ways.

A lot of people are still under shock and throughout Algiers people are extremely worried. They're too afraid to go back to their home, Wolf. So people are just camping out in the street. They slept last night outside, and one person I spoke to said they -- he slept with his entire family slept in their car. And again tonight, a lot of people are either making makeshift tents or just sleeping in the streets and under the stars, basically -- Wolf.

BLITZER: Well, good luck to all of the people in Algeria. This sounds like an awful, awful situation. I think they're bracing for aftershocks as well.

Rym Brahimi on the scene for us in Algiers. Rym, thanks very much.

Surviving a plane crash. There's a device that could save your life. So why isn't the idea of air bags taking flight in the United States?

And she just isn't on par with the me, she's ahead of many of them. Jim Nance of CBS Sports will speak with us live from the PGA Tournament. Annika Sorenstam, what a phenomenon. We're talking about that, much more.

Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Earlier we asked, which aircraft already use air bags. The answer, all of the above. Both Virgin Atlantic and Air Canada use air bags on some of their planes. And the U.S. Military is phasing them in for use in some of its helicopters, including the Black Hawk, to protect pilots.

(END VIDEOTAPE) BLITZER: And we'll have more on that story coming up shortly.

But first, the explosion at Yale University Law School. What at first raised fears of a terrorist attack, now appears to be something entirely different.

Let's get the latest. CNN's Jamie Colby is joining us now live from New Haven with details. What is the latest? This investigation now about 24 hours under way.

JAMIE COLBY, CNN CORRESPONDENT: That's exactly right, Wolf, and they've been at that time and they will continue at it all evening.

But CNN has just learned from Connecticut State Police, Wolf, that they've now identified a man depicted in a sketch that was shown to law students. While they're saying that man is not a suspect, Yale University officials are calling for calm on campus.

(BEGIN VIDEOTAPE)

WILLIAM CHOI, YALE FRESHMAN: Well, I mean, everybody's like very, very, like, loose about it. I mean, nobody's gone berserk yet.

COLBY (voice-over): The majority of Yale University students we spoke to are taking Wednesday's bomb blast in stride.

CHOI: Hopefully, you know, this was just a disgruntelled student, you know, who didn't get into Yale. And, you know, it's not like some massive, like, al Qaeda whatever strike at us.

COLBY: As Yale prepares to welcome 20,000 guests for its 302nd graduation, several students like Rand Frazier are beginning to get cancellations. His grandmother and aunt have decided they won't visit the campus.

RAND FRAZIER, YALE SENIOR: I am actually kind of scared because it just seems to me like they're not willing to say what it actually was because they don't want to have to postpone commencement or anything.

COLBY: University and police officials insist the bomb was an isolated incident in no way connected to international terrorism.

So far they haven't identified any suspects or precisely the type of explosive device used.

LT. COL. EDWARD LYNCH, CONNECTICUT STATE POLICE: We personally have evidence technicians from our major crime squad who are literally on hand and knee, sifting through debris looking for evidence of any type.

COLBY: Still, absent explanation, graduating senior Sarah Froikin feels safe on campus.

SARAH FROIKIN, YALE SENIOR: There is very security on campus. There are security guards all over the place. There are blue phones. They're very good about that. I'm not too worried.

COLBY: Neither is Jeff Robson, who has his own theory about the case.

JEFF ROBSON, YALE GRADUATE STUDENT: Well, maybe some one didn't graduate who wanted to graduate or thought they should.

COLBY: Those who are graduating aren't letting the explosion hold them hostage.

(END VIDEOTAPE)

COLBY: And Wolf, while investigators will work through the night sorting through that rubble piece by piece, structural engineers were in today and have cleared the stability of the building so the graduation of this year's law school class, which would take place in the building where the blast occurred will go on as scheduled -- Wolf.

BLITZER: All right. Jamie Colby with the latest in New Haven. Thanks very much.

Let's move on now to a story of surviving a tragedy in the sky. We've heard how air bags, of course, can save lives in car crashes. Now some airlines say air bags would also be lifesavers in plane crashes. But is the price tag too high for the financially-troubled industry?

CNN's Patty Davis has been investigating, looking for answers.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT (voice-over): It looked unsurvivable. But nearly two-thirds of the people on this United Flight did survive when it crash landed in Sioux City, Iowa, in 1989. Some say even more might have lived if the plane had passenger air bags.

LARRY WILLIAMS, AMSAFE AVIATION: It would help prevent some of those head and neck injuries and increased the probability of people being able to get themselves off of the airplane.

DAVIS: Nearly 96 percent of passengers survive commercial airline accidents. The key, staying conscious and getting out, especially if there's a post-crash fire. Air bags could help passengers stay conscious.

WILLIAMS: So when you're wearing the system, the air bag comes out this way and deploys in front of you.

DAVIS: They're meant to increase the odds that passengers can walk away from survivable crashes, not catastrophic once.

Safety experts say the air bags are a good idea, but question whether they're a prudent investment at $1,000 per seat.

PETER GOELZ, FMR. NTSB MANAGING DIR.: If every seat had them in a crash on landing it probably would be helpful. But the question is should you expend you know what would be $100,000-plus per aircraft? Is that the wisest expense of your safety dollar? Probably it isn't.

DAVIS: Federal crash investigator do not consider airplane air bags a top priority for needed safety improvements. So far, ten mostly overseas carriers including a few Virgin Atlantic planes have air bags, but only in bulkhead seats where there's a wall passengers could hit.

Although studies show the air bags cut head injuries, there hasn't yet been an actual accident putting them to the test.

(on camera): No major U.S. carriers have them, but the U.S. military is so convinced air bags are lifesavers, it's putting them in their Black Hawk helicopters to protect the pilots.

Patty Davis, CNN, at Reagan National Airport.

(END VIDEOTAPE)

BLITZER: Swinging away at her male competition. How did she fare on the fairway? We'll speak live with Jim Nantz of CBS Sports about Annika. How did she do today? You'll find out.

And are you depressed when you look at your paycheck? Get ready for a change to your bottom line. We'll have details.

(COMMERCIAL BREAK)

BLITZER: We're watching history unfold in Texas. Annika Sorenstam became the first woman golfer in 58 years to tee off against the men in a PGA tournament today. CBS play-by-play announcer Jim Nantz has been covering major golf tournaments for many years. He's in Fort Worth, Texas now to tell us how Annika did in this first round. How did she do actually?

JIM NANTZ, CBS SPORTS: Wolf, she did remarkably well. She far exceeded anyone's expectations. She talked about how she wanted to compare this to climbing Mount Everest and I think she took the LPGA Tour, put the tour on her back today and took it to heights it has never seen before.

I think it is the most significant day of the history of women's golf. That's how big it was.

BLITZER: Really? This is huge. To our viewers who don't necessarily follow golf, tell us how big of a deal this is.

NANTZ: Well, you know, you mentioned in the setup there that this is the first time in 58 years -- and with all due respect to the legendary late Babe Didrikson Zaharis, she can't compare what she did back in the '40s at the Los Angeles Open with just a little bit of media coverage back in those days versus what Annika had to do today.

I've covered major championship golf events for 18 years for CBS. I've never seen one player scrutinized, inspected under the microscope quite like Annika was today. She had so many cameras moving with her. Everyone kind of collectively holding their breath over every shot.

In fact, being out here and having had a chance to cover the majority of Tiger's great wins, he's never in one day had that many people moving with him, following him. And this is a sport where so much of it is about it is about feel, it's in your hands. I was just really concerned whether or not today she would get comfortable enough where she could go out and play her game and have the feel like she's on a golf course in any given normal round.

And she was able to establish that early. And she shot 71, which is one over here. And that's about the worst it could have been. She didn't hold many putts. But it was a beautiful round of golf and she's beaten a number of players here and has a chance to make the cut.

BLITZER: Jim, we heard from her after the first round. I want viewers to hear what Annika said after this first round of play.

(BEGIN VIDEO CLIP)

ANNIKA SORENSTAM, GOLFER: I feel like I played 36 holes in one day. We'll see. I'm sure tomorrow I'm going to be nervous as well because then it's Friday and I want to do better. So you know (UNINTELLIGIBLE) be other reasons to be nervous.

(END VIDEO CLIP)

BLITZER: It's -- did -- the pressure on her must be enormous. Can we conclude she's going to make the cut? She's going to be in the final round in this tournament with the men?

NANTZ: We can't conclude that. And I don't think it really matters right now, Wolf. Today was the landmark breakthrough day. She showed went out there and showed that she could play out here on one day with the best in men's golf and play well.

I don't think it matters what she shoots tomorrow. She's going to have to shoot better tomorrow to make the cut. It looks like she'll need 68 or 69 to make it.

But I think given, again, what she's done, it's already a huge day for women's golf, for the game of golf overall. I can't imagine anybody doing something with as much pressure the rest of this year in any event. I think it's going to be, at the end of the year, something that "Sports Illustrated" will designate as the "Sports Person" or "Sports Achievement" of the year. We saw it today.

BLITZER: That's pretty amazing.

How are the men who are playing with her, how are they dealing with this?

NANTZ: Well the two players she was paired with just were remarkable, Aaron Barber and Dean Wilson two young players who were so supportive. I have to extend a real nod to them for the way that they were there for her and were really into it. I have to say, I've been around the locker room here today. Everyone is appreciative and admiring what she did. Everyone recognizes this was a very difficult form to be placed in with such intense pressure. And, you know, if you weren't here initially rooting for her to do well, if you're one of the players, I think by day's end you had to have a little tip of the cap and say that was outstanding what she did.

BLITZER: I take it, Jim, the crowd is really with her. Anybody heckling, anybody against her?

NANTZ: Zero. Nobody. I mean there were thousands of people moving with her. I think at a times she had 20,000 people lining a hole.

And I think that when I walked out there I did not hear any protests, anything out of line. Everyone was into it, into the excitement and again, even a little bit nervous. As she was teeing off, the air was so thick with anticipation and pressure.

Covering football, basketball, golf, the Olympics, I never -- the only thing I can think of that was close to it was being at the Lillehammer Olympics in '94 when Nancy Kerrigan and Tonya Harding were on the ice in the ladies figure skating. And that had so much build up for a month after that tire iron incident the month before. That's the only thing I can ever think of that had that much anticipation in the air.

BLITZER: Jim Nantz, you'll be covering this tournament for us all weekend on CBS Sports. Thanks for joining us. We're all rooting for Annika. Let's hope she gets -- she makes the cut. We'll be watching. You'll have a huge result, I am sure. Thanks, Jim Nantz, for spending a few minutes with us.

NANTZ: Thank you, Wolf. A real honor to be with you.

BLITZER: Thank you.

And what does an 18-year-old do with, get this, $90 million? You might ask Lebron James, the high school hoop phenomenon who signed an endorsement deal with Nike worth $90 million. For comparison, Michael Jordan's first Nike contract was for a mere $2 1/2 million. LeBron James, high school player.

Is Iran helping or holding back al Qaeda operatives?

We'll have a live report. That's coming up.

And was a fishing boat part of a terror plot that might have unfolded?

We'll go live to Jerusalem for some answers.

And you want more money?

President Bush calls a new tax cut plan a victory for American workers. What's the bottom line on what it could mean for your wallet?

We'll tell you.

And the saying, it's not whether you win or lose, it's how you play the game. It certainly didn't apply for athletes under Saddam Hussein's regime. We'll hear about their chilling stories.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN.

Coming up, a scare at sea.

What was lurking offshore that made a jittery nation each more nervous.

First, the "Headlines at This Hour."

BLITZER: Remembering America's warriors as Memorial Day draws near. Members of the U.S. Army's 3rd Infantry are placing flags at those buried at Arlington National Cemetery, here in Washington D.C. You're looking at a live picture. The so-called flag-in has been a Memorial Day tradition since 1948.

In Bakersfield, California, police brought a 2-year-old boy back to the neighborhood where he was found wandering alone last weekend. Detectives hope the boy might recognize his surroundings and lead them to his parents. The boy speaks only Spanish and says his name is Mateo (ph).

They were conjoined at the head and separated during a delicate operation in Los Angeles last year. Now twin girls from Guatemala are returning to UCLA's Children's Hospital for more treatment. One of the twins is suffering from fluid on the brain. You are looking at a live picture waiting to bring these girls back to UCLA for more treatment. We wish them only the best of luck.

And is Iran giving al Qaeda a freehand or is it tying the hands of terrorists?

Senior U.S. intelligence officials tell CNN there are indications Iran at some point has detained top al Qaeda officials, but there are mixed signals coming from Tehran.

Let's go live to our justice correspondent, Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, intelligence officials have long said there was a suspected al Qaeda presence in Iran. New information seems to suggest not only are al Qaeda members in the country, but they may be operational.

(BEGIN VIDEOTAPE)

ARENA (voice-over): Saif al Adel is believed to be al Qaeda's top operational planner, third in the chain of command. Officials believe he may have played a role in the recent bombings that killed eight Americans in Saudi Arabia. Senior officials suggest Iran had others in custody at some point, but beyond, that the intelligence is murky.

DONALD RUMSFELD, DEFENSE SECRETARY: There is no question that there have been and are today senior al Qaeda leaders in Iran, and they are busy.

ARENA: Despite repeated denials of an al Qaeda presence in Iran, CNN has learned Iranian officials told a U.N. representative during a Thursday meeting that Iran does have several unnamed al Qaeda operatives in custody. But U.S. Officials say it is unclear whether the operatives are allowed to receive visitors and communicate. If they are, the U.S. says, that would amount to safe haven. The U.S. and Britain are demanding Iran turn al Qaeda over.

TONY BLAIR, BRITISH PRIME MINISTER: We have said very clearly to the Iranian government that harboring al Qaeda would be entirely unacceptable.

ARENA: Intercepts picked up around the time of last week's bombings is evidence, officials say, of an operation al Qaeda post in Iran. And that evidence in part led to raising the threat level to high alert in the United States.

BRUCE HOFEMAN, RAND COPR: Certainly Saif al Adel in recent months has been issuing propaganda and has been active in at least al Qaeda's more outward external communication, recruitment propaganda campaign.

(END VIDEOTAPE)

ARENA: Top Middle East experts point out there was optimism building about improved Iran-U.S. relations when it was revealed the two were holding talks about regional issue, and most importantly Iraq's nuclear program. But the U.S. refused to attend today's talks over the al Qaeda issue and they say any momentum that was building is now dead in its tracks -- Wolf.

BLITZER: Kelli Arena with us in Washington. Kelli, thanks very much.

Israel's Navy announced the seizure of a fishing vessel in Lebanon. But official say the ship had a more sinister purpose.

Let's go live to Kelly Wallace, she is joining us from Jerusalem -- Kelly.

KELLY WALLACE, CNN ANCHOR: Wolf, Israeli officials this is a disturbing development. They believe the ultimate goal here is setting up bomb-making schools in the Gaza strip.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): A narrator describes how to put a belt together for a suicide bombing mission. How to wear the device and where to stand to inflict the greatest damage. Just some of the information on 36 CD-ROMs the Israeli Navy says it found when it seized this fishing boat off the coast of Lebanon Wednesday. Israeli officials say it was a frightening discovery.

UNIDENTIFIED MALE: There's only one thing more deadly than terrorist weaponry and that's terrorist know how.

WALLACE: Also on board and headed for the Gaza strip according to Israeli officials, bomb-making equipment and a bomb-making expert, officials say trained by Hezbollah, the Shi'a Muslim militia backed by Iran, and Syria and based in southern Lebanon. The incident bears similarities to another ship, the Karine A, Israeli officials say. That ship was carrying 50 tons of weapons and was intercepted by Israel in January of last year, believed to be traveling from Iran and head for the Palestinian Authority. Then Israeli officials laid the blame at Palestinian President Yasser Arafat's door as they are doing now. Although they say they won't know for sure he's connected until the investigation wraps up.

UNIDENTIFIED MALE: What's absolutely clear to us is that Yasser Arafat is trying every way possible to escalate the situation in the territories.

WALLACE: An Arafat spokesman responded telling CNN, quote, this is part of the Israeli campaign to smear the Palestinian Liberation organization and to avoid implementing the road map. We have nothing to do with this.

As this was unfolding, new Palestinian Prime Minister Mahmoud Abbas and his top security officials held their first talks Thursday evening with leaders of the radical Palestinian group Hamas, which has claimed responsibility for four of the five recent suicide bombings against Israelis. The prime minister is trying to convince the group to stop these attacks.

(END VIDEOTAPE)

WALLACE: But those meetings wrapped up with no agreement other than to talk again some time soon -- Wolf.

BLITZER: Kelly Wallace in Jerusalem. Kelly, thanks very much.

It's a $350 billion tax cut plan. But what does that mean for your wallet? How much money could it save you? We'll break down the tax bill that President Bush says he'll sign into law.

And imagine if you played sports in a country where you were beaten and imprisoned if you lost. It happened in Iraq. We'll have some chilling stories of athletes who were tortured under the regime of Saddam Hussein.

(COMMERCIAL BREAK)

BLITZER: If you work and pay taxes, payday could be coming to you in a matter of weeks. But how much money will Uncle Sam be putting in your wallet? We'll tell you. That's coming up on WOLF BLITZER REPORTS. (COMMERCIAL BREAK)

BLITZER: Welcome back.

It looks like American taxpayers will be getting an almost $350 billion tax break. But will it jumpstart the economy? And what exactly will it mean for your family?

Here to sort through all of this, CNN's Kathleen Hays. She's joining us now live from New York.

Kathleen, tell us what this means, bottom line, for our viewers.

KATHLEEN HAYS, CNNfn CORRESPONDENT: Well, Wolf, economists say unfortunately the tax package probably isn't big enough to really boost the economy a whole lot. However, it is big enough to put smiles on the faces of more than one American family.

Here's why.

(BEGIN VIDEO CLIP)

HAYS (voice-over): For cash-strapped families across America, the tax story isn't about politics, it's about pocketbooks. As in ,what are the president's tax cuts doing for me?

SCOTT HODGE, TAX FOUNDATION: For your typical family in the middle at about $60,000 to $62,000 a year, they'll see their tax bill cut by 25 percent this year right off the bat.

HAYS: Here's the typical family: dad works, but he's worried about keeping his job. Mom works, but she'd rather start her own small business. Two bratty kid in expensive day care. The cat and dog don't count.

Income? Just over $60,000.

Here's how much they save: getting married is getting sweeter; $233 is saved by eliminating the marriage tax penalty and more money to spend on soccer and piano lessons.

Eight hundred dollars is saved on the two kids, $400 for each.

And just for being a taxpayer, Uncle Sam is throwing in dollar $100 per family. Grand total? $1,133.

But that's not all. If you didn't use lose all your money in the stock market, you could save as much as $375 from the dividend and capital gains tax cuts.

And for lower income families, even bigger breaks.

HODGE: With lower income working couples, they'll see an even greater impact on their tax bill. A family of four earning, say, $40,000 a year would see almost their entire income tax bill wiped out this year. (END VIDEOTAPE)

HAYS: Overall, the nonpartisan Tax Foundation estimates that nearly 4 million working couples will see their tax bill entirely eliminated this year as a result of the tax changes -- Wolf.

BLITZER: All right. Kathleen Hays with some important details for us. Thanks Kathleen, very much.

Here's your chance to weigh in on this story. Our "Web question of the Day": "What do you plan on doing with your tax cut money? Give it to charity? Get out of debt? Save it? Spend it?"

We'll have the results later in this broadcast. Please vote at cnn.com/wolf. While you're there, I'd love to hear from you. Send me your comments. I'll try to head read some of them on the air each day at the end of this program.

That's also, of course, where you can read my daily online column, cnn.com/wolf.

Talk about performing under pressure. Imagine being imprisoned or tortured if you played badly in a sports game. It happened to some Iraqi athletes, many Iraqi athletes. That's coming up immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: With the fall of Saddam Hussein, Iraqi athletes are coming forward with graphic stories about their brutal treatment from the Iraqi leader and his son Uday who was president of Iraq's Olympic committee. As many of you will remember, CNN's Karl Penhaul first brought you some of these stories only a few weeks ago.

Now the award-wing filmmaker, Jon Alpert he's traveled to Iraq as well and met some of the athletes who were brutally tortured. Alpert's film was shown on HBO Tuesday. It will be repeated this weekend. Remarkable work. John's joining us now live from New York.

Jon, I want to show our viewers a brief clip, an excerpt. Frank DeFord narrating this excerpt from your piece on the torture of Iraqi athletes who didn't do precisely what Uday Hussein wanted them to do.

(BEGIN VIDEO CLIP)

JOHN DEFORD, NARRATOR (voice-over): After a day's worth of beating, after their skins had been whipped raw, the players were taken to the tower. They climbed 90 feet up the ladder one more hour of punishment.

UNIDENTIFIED MALE (through subtitles): The whole team had to dive into a vat of raw sewage. It happened to me. It happened right here.

(END VIDEO CLIP) BLITZER: That's an amazing thing. They had to jump down from that tower, Jon, into a vat of sewage because they lost the game or didn't perform as well as Uday Hussein wanted them to perform?

JON ALPERT, HBO PRODUCER: Yes. On that particular occasion they were kept in that torture camp for two weeks. And they were taken in the morning, they were run, they were whipped, they were beaten. And then for one hour at end of the day they had to dive into the sewage.

BLITZER: Did Uday Hussein believe that torturing these star athletes, these soccer players, others, that that would get them over the top, if you will?

ALPERT: Well I think that perhaps he might have thought that. But the other thing he was doing is he was taking the heroes of Iraq, the people who everybody looked up to and he was showing everybody else in Iraq that nobody was beyond his reach. And it was I think part of the way in which he terrorized the population.

BLITZER: And even the best, the coaches, the managers, the stars, they were brutalized as well. Talk a little bit about that, what you learned.

ALPERT: Even the sports announcers, Wolf. You'd be in trouble. If he didn't like you for whatever particular reason -- was there one sports announcer he had his guards break his arms, break his legs and then he demanded the x-rays. He looked at the x-rays and said you know guys didn't break enough bones. And sent this poor guy back to get more of his bones broken. It was unbelievable.

BLITZER: I saw that in the piece. He was once a star athlete, then he became an announcer.

Uday Hussein, what was he? Just he a brutal sadist? Is that what this was all about?

ALPERT: It seemed to be, you know -- he really, in -- in one part wanted some of the adulation that the athletes were getting from the population and people didn't like him. And I think he was jealous and he took out some of his jealousy on people.

And he destroyed these athletes psychologically. You know when the game is on the line the star athletes want the ball. Well, none of these guys wanted the ball. If the game had to be decided by penalty kicks, they ran the other way because they didn't want to miss because they knew what was happening. They'd get tortured.

BLITZER: And during the U.S. bombing we knew that the Olympic Headquarters, the Iraqi Olympics Headquarters Building was bombed. A lot of people knew what was going on inside that building, experts on Iraq -- what was going on. That's where a lot of these athletes were tortured.

ALPERT: Yes, Uday had a private jail in the basement. And if he wasn't really mad at you he would take you there. If he was really angry you go to one of the main prisons.

But one of the problems is when we bombed that center, we destroyed all the records and statistics about athletics in Iraq. And after the bombing, the looters got loose, and they stripped every single athletic facility in the country.

So now there's no record. You could be the shot put champion of Iraq, nobody knows. And records are really important and athletes don't have anywhere to practice because absolutely everything in the country has been stolen by the looters.

BLITZER: They're basically starting from scratch.

Jon Alpert, you did some important work. Karl Penhaul did important reporting for us as well earlier. Thanks to both of you for all this useful information. The Iraqi people are resilient. They'll come back, they'll come back on the sports field as well.

And what do you plan on doing with your tax cut money? The results of "Our Web Question" immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: You remember those conjoined twins from Guatemala who were separated at the UCLA Medical Center? Well they've come back to Los Angeles for additional treatment. You're looking at these pictures just seconds ago. They are back on the ground. They'll be driven over to UCLA, both of these girls for the specialized treatment. One of them apparently has some fluid on the brain. We wish them only, only the best of luck.

Let's move on now and see how you're weighing in on "Our Web Question of the Day." Remember, we've been asking you this, what do you plan on doing with your tax cut money? Look at this, 5 percent of you say give it to charity, 31 percent of you say get out of debt, 41 percent said save it, 23 percent said spend it. As always, we tell you this always, of course, is not a scientific poll.

Let's get to some of your e-mail. Bentley asked this question: "If the tax cut is so good for the economy, why doesn't President Bush and Congress just do away with taxes altogether and let the good times roll?"

On the terror alert Ed write, "The color-code system is silly. People have stopped reacting to these warnings because they have lost all urgency. It's the proverbial boy who cried wolf syndrome."

But Carolyn disagrees. "People should not be confused about the terror alert system. The safety of years pass has spoiled us. Now we need to pay attention to the warnings and take responsibility for our own safety and the safety of others."

(NEWSBREAK)

BLITZER: That's all the time I have. Lou Dobbs is standing by in New York to pick up our coverage. 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 22, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Today it's a drill. But what will tomorrow bring? Concerns that terrorists could strike in the immediate future. Are al Qaeda officials in Iran calling the shots?

Who's behind the explosion at Yale University?

UNIDENTIFIED MALE: We personally have evidence technicians from our major crime squad who are literally on hand and knee sifting through debris.

BLITZER: The search for clues and the motive.

Payday on the way. A $350 billion tax cut. Congress is ready to pass it, but when it will pass into your hands?

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We believe the more money people have in their pockets, the more likely it is somebody's going to be able to find work.

BLITZER: Surviving a plane crash. The odds are better than you think and this device may give you an even better chance.

And Annika in action. Round one. Can she hold her own with the guys?

ANNOUNCER: CNN live this hour, WOLF BLITZER REPORTS live from the nation's capital with correspondents from around the world. WOLF BLITZER REPORTS starts now.

(END VIDEOTAPE)

BLITZER: It's Thursday, May 22, 2003. Hello from Washington. I'm Wolf Blitzer reporting.

With the nation at Code Orange indicating a high threat level, officials are concerned that a terror attack could take place virtually at any time. In fact, some suggest we may be right in the middle of a 48-hour period of heightened danger.

CNN's Jeanne Meserve is tracking developments on the Homeland Security front. She's joining us now live from our Washington bureau. This 48-hour heightened period of danger, what's that all about, Jeanne?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: An accumulation of intelligence, Wolf, all put together when they looked at this matrix, they decided there was a threat in the immediate future though officials say there is no specific date mentioned in the intelligence.

One U.S. government official tells me there is a piece of intelligence which has a number on it which might be a date, but there is no month associated with the number and it's open to interpretation. They don't quite know exactly what they're dealing with.

They took that number, they look at where it falls on our calendar this month and where it falls on the Muslim calendar. They see a discrepancy, that may being for this 48-hour window that we've talking about.

But again, this information not verified and open to interpretation. But that's why this particular time period is of concern.

BLITZER: Jeanne, you've learned there was serious debate, if you will, underway within the Homeland Security Council before this decision to go up to the elevated (sic) level, the Orange level was agreed on?

MESERVE: That's right, I'm told there was a very healthy debate in the Homeland Security Council. There was a real desire to verify the intelligence that they were dealing with, that in a couple of points information was sent back to the analysts. They were told to take another look, try and piece things together a little bit different. After this extended debate, however, I'm told that there was a consensus on doing this.

And I should say that for the moment it's going to stay exactly where it is. I talked to an official a short time ago who said the intelligence chatter remains high at this point and there's no indication that al Qaeda's operational capabilities or planning activities have been disrupted that the point. So we'll stay at Orange, I'm told, at least through the Memorial Day weekend.

BLITZER: All right, Jeanne Meserve with the latest. Thanks very much, Jeanne.

And heading into this Memorial Day weekend, Americans are on alert from coast to coast. We asked people in three cities how they feel about the terror threat. Many are quite concerned, others are seemingly carefree.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The other day my husband was late coming in by train and we'd heard there was a problem with the trains going into New Jersey and I immediately thought it was something -- some kind of sabotage. UNIDENTIFIED MALE: I don't feel any heightened anxiety there. I think there's certainly an awareness and that people care, but they care about it extraneously.

UNIDENTIFIED FEMALE: I think there's a definite threat especially since these recent attacks in Morocco and in Saudi Arabia. And they may be, I feel, a prelude to what might happen here.

UNIDENTIFIED MALE: It doesn't affect my life at all. I travel. I still go where I want. I don't worry about it.

UNIDENTIFIED FEMALE: I think of getting on the plane Saturday morning and with the heightened security and everything. And you always think I'm sure there's poor people always felt it wouldn't happen to them. I think that's the way it is.

UNIDENTIFIED FEMALE: You have to be safe or whatever, but I guess the media is just trying to play it up a little bit too much for me.

(END VIDEO CLIP)

BLITZER: He planned and commanded the war to oust Saddam Hussein's regime in Iraq and the war against terrorism in Afghanistan. But despite success on the battlefield, today we have more confirmation that General Tommy Franks has apparently had enough of the U.S. Army, at least for now.

Let's go live to our senior Pentagon correspondent Jamie McIntyre. He's following these developments -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf, what we have today is other news organizations catching up with what CNN reported ten days ago when we reported exclusively that General Tommy Franks had turned down after offer to become the Army Chief of Staff. That meant that he effectively was deciding to retire because his term is up at the beginning of July.

That said, however, he has not yet requested retirement and Defense Secretary Rumsfeld has not yet selected his replacement. So it is possible he could be asked to stay on a month or two more until a replacement is sought.

But at this point, Tommy Franks will be retiring, just a question of when. He has turned down an offer to take another job and stay in the Army -- Wolf.

BLITZER: I'm sure there will be plenty of opportunities for him in the private sector, including an important book that he has waiting to be written. Jamie McIntyre for us at the Pentagon. Thanks very much.

And checking headlines right now from Iraq, Americans ambushed. Here are pictures of the aftermath. The military says Iraqis west of Baghdad in Fallujah used a Rocket Propelled Grenade to attack a U.S. Army patrol. Army sources say U.S. troops returned fire, killing at least two Iraqis and captured five others.

South of Baghdad, Paul Bremer, the top U.S. administrator in Iraq visited a mass grave believed to contain thousands of Shi'ite Muslims killed after a 1991 revolt against Saddam Hussein. The mass grave is the largest found since U.S.-led forces overthrew the Iraqi leader last month. Iraqi doctors say about 2,000 of the 3,100 bodies have been identified.

And another capture to report this hour. The highest-ranking member of Saddam Hussein regime caught yet. Aziz Salih al-Numan, a former Ba'ath Party leader is number eight on the list of 55 most wanted Iraqis. American officials say al-Numan was one of nine top leaders the United States wants to see tried for war crimes.

And a major victory for President Bush. The U.N. Security Council today voted to end sanctions against Iraq. But what does that mean for Iraq and for everyone involved? CNN's Michael Okwu is joining us now live from the United Nations. He has the latest -- Michael.

MICHAEL OKWU, CNN CORRESPONDENT: Wolf, good afternoon. The United States and Great Britain will have broad U.N. authority to run Iraq until a democratically-elected government is in place. U.S. officials say much to the benefit of the Iraqi people.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Please raise the hand.

OKWU (voice-over): These raised hands mean sanctions are now lifted on Iraq.

JOHN NEGROPONTE, U.S. AMB. TO U.N.: After more than a decade of being frozen out of the world economy, it is time for the Iraqi people to benefit from their natural resources.

OKWU: The Iraqis will be able to pump, sell and deliver oil again, including some 8 million barrels waiting in a Turkish terminal. Since 1996 Iraq's oil has been sold under the U.N. Oil-For-Food Programme, but no one has had the legal authority to sell it since the war. The resolution gives the U.S. and Great Britain that right and the right to start using a billion dollars from the program to restore water supplies, build roads and housing and to meet hospital needs.

UNIDENTIFIED MALE: Equipment not available because of the sanctions. And so that the patients are still suffering and they're going to die because we didn't (UNINTELLIGIBLE) diagnose because there's no equipment.

OKWU: The U.N. is hoping the end of sanctions will pave the way towards self-suficency.

JAMES MORRIS, WORLD FOOD PROGRAM: Essentially Iraq produces about a third of the food it requires to feed its own population. There have been minimal investments in agriculture in the country. And my sense is that will change. OKWU: Ending sanctions means that ordinary Iraqi citizens can now receive money freely from friends and family abroad, some of the frozen assets will be returned to the country, and that regular commercial flights can resume.

(END VIDEOTAPE)

OKWU: Now the U.S. made concessions to allow this resolution to go through including a provision that would allow the Security Council to reconvene and to review this resolution within one year -- Wolf.

BLITZER: Michael Okwu at the United Nations, thanks very much. An important development happening there today that could affect dramatically, the sources -- the cause of peace, if possible, in Iraq.

Meanwhile, rattled nerves at Yale University. What caused the explosion some 24 hours ago? We'll get the latest from New Haven, Connecticut.

Also, get ready for payday. You want more money? You might be getting some more. Wait until you see how much Uncle Sam has in store for you if President Bush has his way.

And Annika in action. She has the moves. We're going live to the PGA golf tournament to see what made the men squirm today. Jim Nance of CBS Sports -- he'll join me live. We'll talk about Annika, golf, men and women.

And can you survive a plane crash? You're looking at pictures that may explain how to improve your odds.

First, our "News Quiz."

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Which aircraft already use air bags? Virgin Atlantic? Air Canada? Black hawk helicopters?

The answer coming up.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: It's happening right now. Tragically, rescue workers in Algeria, many of them using their bare hands, are digging through mounds of rubble in a desperate attempt to find survivors from the country's worst earthquake in 20 years. The death toll already over 1,000 people, almost 7,000 others injured.

Joining us now on the phone from the capital, Algiers, CNN's Rym Brahimi.

This looks awful. The pictures devastating, Rym. How bad is it over there? RYM BRAHIMI, CNN CORRESPONDENT: Wolf, it's very bad outside of the Algerian capital, especially in the Algerian capital, it's quite bad in some of the poorer neighborhoods.

I just went around to see some buildings that have totally collapsed and this happened in mainly in a lot of the poor neighborhoods and residents are complaining that a lot should have been done before to make sure these buildings were stabilized because there were threats already before the earthquake took place. A lot of people died in some of those buildings and a lot of people injured.

I also visited a hospital in central Algiers where a lot of the injured have been brought in from the various parts of the east of Algeria, about 70 kilometers east of Algiers is where the epicenter was and from where a lot of the injured have been brought. Doctors there I spoke to said one of the most frequent injuries they're seeing -- there's been a lot of traumas, a lot of amputations and a lot of fractured limbs, in many ways.

A lot of people are still under shock and throughout Algiers people are extremely worried. They're too afraid to go back to their home, Wolf. So people are just camping out in the street. They slept last night outside, and one person I spoke to said they -- he slept with his entire family slept in their car. And again tonight, a lot of people are either making makeshift tents or just sleeping in the streets and under the stars, basically -- Wolf.

BLITZER: Well, good luck to all of the people in Algeria. This sounds like an awful, awful situation. I think they're bracing for aftershocks as well.

Rym Brahimi on the scene for us in Algiers. Rym, thanks very much.

Surviving a plane crash. There's a device that could save your life. So why isn't the idea of air bags taking flight in the United States?

And she just isn't on par with the me, she's ahead of many of them. Jim Nance of CBS Sports will speak with us live from the PGA Tournament. Annika Sorenstam, what a phenomenon. We're talking about that, much more.

Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Earlier we asked, which aircraft already use air bags. The answer, all of the above. Both Virgin Atlantic and Air Canada use air bags on some of their planes. And the U.S. Military is phasing them in for use in some of its helicopters, including the Black Hawk, to protect pilots.

(END VIDEOTAPE) BLITZER: And we'll have more on that story coming up shortly.

But first, the explosion at Yale University Law School. What at first raised fears of a terrorist attack, now appears to be something entirely different.

Let's get the latest. CNN's Jamie Colby is joining us now live from New Haven with details. What is the latest? This investigation now about 24 hours under way.

JAMIE COLBY, CNN CORRESPONDENT: That's exactly right, Wolf, and they've been at that time and they will continue at it all evening.

But CNN has just learned from Connecticut State Police, Wolf, that they've now identified a man depicted in a sketch that was shown to law students. While they're saying that man is not a suspect, Yale University officials are calling for calm on campus.

(BEGIN VIDEOTAPE)

WILLIAM CHOI, YALE FRESHMAN: Well, I mean, everybody's like very, very, like, loose about it. I mean, nobody's gone berserk yet.

COLBY (voice-over): The majority of Yale University students we spoke to are taking Wednesday's bomb blast in stride.

CHOI: Hopefully, you know, this was just a disgruntelled student, you know, who didn't get into Yale. And, you know, it's not like some massive, like, al Qaeda whatever strike at us.

COLBY: As Yale prepares to welcome 20,000 guests for its 302nd graduation, several students like Rand Frazier are beginning to get cancellations. His grandmother and aunt have decided they won't visit the campus.

RAND FRAZIER, YALE SENIOR: I am actually kind of scared because it just seems to me like they're not willing to say what it actually was because they don't want to have to postpone commencement or anything.

COLBY: University and police officials insist the bomb was an isolated incident in no way connected to international terrorism.

So far they haven't identified any suspects or precisely the type of explosive device used.

LT. COL. EDWARD LYNCH, CONNECTICUT STATE POLICE: We personally have evidence technicians from our major crime squad who are literally on hand and knee, sifting through debris looking for evidence of any type.

COLBY: Still, absent explanation, graduating senior Sarah Froikin feels safe on campus.

SARAH FROIKIN, YALE SENIOR: There is very security on campus. There are security guards all over the place. There are blue phones. They're very good about that. I'm not too worried.

COLBY: Neither is Jeff Robson, who has his own theory about the case.

JEFF ROBSON, YALE GRADUATE STUDENT: Well, maybe some one didn't graduate who wanted to graduate or thought they should.

COLBY: Those who are graduating aren't letting the explosion hold them hostage.

(END VIDEOTAPE)

COLBY: And Wolf, while investigators will work through the night sorting through that rubble piece by piece, structural engineers were in today and have cleared the stability of the building so the graduation of this year's law school class, which would take place in the building where the blast occurred will go on as scheduled -- Wolf.

BLITZER: All right. Jamie Colby with the latest in New Haven. Thanks very much.

Let's move on now to a story of surviving a tragedy in the sky. We've heard how air bags, of course, can save lives in car crashes. Now some airlines say air bags would also be lifesavers in plane crashes. But is the price tag too high for the financially-troubled industry?

CNN's Patty Davis has been investigating, looking for answers.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT (voice-over): It looked unsurvivable. But nearly two-thirds of the people on this United Flight did survive when it crash landed in Sioux City, Iowa, in 1989. Some say even more might have lived if the plane had passenger air bags.

LARRY WILLIAMS, AMSAFE AVIATION: It would help prevent some of those head and neck injuries and increased the probability of people being able to get themselves off of the airplane.

DAVIS: Nearly 96 percent of passengers survive commercial airline accidents. The key, staying conscious and getting out, especially if there's a post-crash fire. Air bags could help passengers stay conscious.

WILLIAMS: So when you're wearing the system, the air bag comes out this way and deploys in front of you.

DAVIS: They're meant to increase the odds that passengers can walk away from survivable crashes, not catastrophic once.

Safety experts say the air bags are a good idea, but question whether they're a prudent investment at $1,000 per seat.

PETER GOELZ, FMR. NTSB MANAGING DIR.: If every seat had them in a crash on landing it probably would be helpful. But the question is should you expend you know what would be $100,000-plus per aircraft? Is that the wisest expense of your safety dollar? Probably it isn't.

DAVIS: Federal crash investigator do not consider airplane air bags a top priority for needed safety improvements. So far, ten mostly overseas carriers including a few Virgin Atlantic planes have air bags, but only in bulkhead seats where there's a wall passengers could hit.

Although studies show the air bags cut head injuries, there hasn't yet been an actual accident putting them to the test.

(on camera): No major U.S. carriers have them, but the U.S. military is so convinced air bags are lifesavers, it's putting them in their Black Hawk helicopters to protect the pilots.

Patty Davis, CNN, at Reagan National Airport.

(END VIDEOTAPE)

BLITZER: Swinging away at her male competition. How did she fare on the fairway? We'll speak live with Jim Nantz of CBS Sports about Annika. How did she do today? You'll find out.

And are you depressed when you look at your paycheck? Get ready for a change to your bottom line. We'll have details.

(COMMERCIAL BREAK)

BLITZER: We're watching history unfold in Texas. Annika Sorenstam became the first woman golfer in 58 years to tee off against the men in a PGA tournament today. CBS play-by-play announcer Jim Nantz has been covering major golf tournaments for many years. He's in Fort Worth, Texas now to tell us how Annika did in this first round. How did she do actually?

JIM NANTZ, CBS SPORTS: Wolf, she did remarkably well. She far exceeded anyone's expectations. She talked about how she wanted to compare this to climbing Mount Everest and I think she took the LPGA Tour, put the tour on her back today and took it to heights it has never seen before.

I think it is the most significant day of the history of women's golf. That's how big it was.

BLITZER: Really? This is huge. To our viewers who don't necessarily follow golf, tell us how big of a deal this is.

NANTZ: Well, you know, you mentioned in the setup there that this is the first time in 58 years -- and with all due respect to the legendary late Babe Didrikson Zaharis, she can't compare what she did back in the '40s at the Los Angeles Open with just a little bit of media coverage back in those days versus what Annika had to do today.

I've covered major championship golf events for 18 years for CBS. I've never seen one player scrutinized, inspected under the microscope quite like Annika was today. She had so many cameras moving with her. Everyone kind of collectively holding their breath over every shot.

In fact, being out here and having had a chance to cover the majority of Tiger's great wins, he's never in one day had that many people moving with him, following him. And this is a sport where so much of it is about it is about feel, it's in your hands. I was just really concerned whether or not today she would get comfortable enough where she could go out and play her game and have the feel like she's on a golf course in any given normal round.

And she was able to establish that early. And she shot 71, which is one over here. And that's about the worst it could have been. She didn't hold many putts. But it was a beautiful round of golf and she's beaten a number of players here and has a chance to make the cut.

BLITZER: Jim, we heard from her after the first round. I want viewers to hear what Annika said after this first round of play.

(BEGIN VIDEO CLIP)

ANNIKA SORENSTAM, GOLFER: I feel like I played 36 holes in one day. We'll see. I'm sure tomorrow I'm going to be nervous as well because then it's Friday and I want to do better. So you know (UNINTELLIGIBLE) be other reasons to be nervous.

(END VIDEO CLIP)

BLITZER: It's -- did -- the pressure on her must be enormous. Can we conclude she's going to make the cut? She's going to be in the final round in this tournament with the men?

NANTZ: We can't conclude that. And I don't think it really matters right now, Wolf. Today was the landmark breakthrough day. She showed went out there and showed that she could play out here on one day with the best in men's golf and play well.

I don't think it matters what she shoots tomorrow. She's going to have to shoot better tomorrow to make the cut. It looks like she'll need 68 or 69 to make it.

But I think given, again, what she's done, it's already a huge day for women's golf, for the game of golf overall. I can't imagine anybody doing something with as much pressure the rest of this year in any event. I think it's going to be, at the end of the year, something that "Sports Illustrated" will designate as the "Sports Person" or "Sports Achievement" of the year. We saw it today.

BLITZER: That's pretty amazing.

How are the men who are playing with her, how are they dealing with this?

NANTZ: Well the two players she was paired with just were remarkable, Aaron Barber and Dean Wilson two young players who were so supportive. I have to extend a real nod to them for the way that they were there for her and were really into it. I have to say, I've been around the locker room here today. Everyone is appreciative and admiring what she did. Everyone recognizes this was a very difficult form to be placed in with such intense pressure. And, you know, if you weren't here initially rooting for her to do well, if you're one of the players, I think by day's end you had to have a little tip of the cap and say that was outstanding what she did.

BLITZER: I take it, Jim, the crowd is really with her. Anybody heckling, anybody against her?

NANTZ: Zero. Nobody. I mean there were thousands of people moving with her. I think at a times she had 20,000 people lining a hole.

And I think that when I walked out there I did not hear any protests, anything out of line. Everyone was into it, into the excitement and again, even a little bit nervous. As she was teeing off, the air was so thick with anticipation and pressure.

Covering football, basketball, golf, the Olympics, I never -- the only thing I can think of that was close to it was being at the Lillehammer Olympics in '94 when Nancy Kerrigan and Tonya Harding were on the ice in the ladies figure skating. And that had so much build up for a month after that tire iron incident the month before. That's the only thing I can ever think of that had that much anticipation in the air.

BLITZER: Jim Nantz, you'll be covering this tournament for us all weekend on CBS Sports. Thanks for joining us. We're all rooting for Annika. Let's hope she gets -- she makes the cut. We'll be watching. You'll have a huge result, I am sure. Thanks, Jim Nantz, for spending a few minutes with us.

NANTZ: Thank you, Wolf. A real honor to be with you.

BLITZER: Thank you.

And what does an 18-year-old do with, get this, $90 million? You might ask Lebron James, the high school hoop phenomenon who signed an endorsement deal with Nike worth $90 million. For comparison, Michael Jordan's first Nike contract was for a mere $2 1/2 million. LeBron James, high school player.

Is Iran helping or holding back al Qaeda operatives?

We'll have a live report. That's coming up.

And was a fishing boat part of a terror plot that might have unfolded?

We'll go live to Jerusalem for some answers.

And you want more money?

President Bush calls a new tax cut plan a victory for American workers. What's the bottom line on what it could mean for your wallet?

We'll tell you.

And the saying, it's not whether you win or lose, it's how you play the game. It certainly didn't apply for athletes under Saddam Hussein's regime. We'll hear about their chilling stories.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN.

Coming up, a scare at sea.

What was lurking offshore that made a jittery nation each more nervous.

First, the "Headlines at This Hour."

BLITZER: Remembering America's warriors as Memorial Day draws near. Members of the U.S. Army's 3rd Infantry are placing flags at those buried at Arlington National Cemetery, here in Washington D.C. You're looking at a live picture. The so-called flag-in has been a Memorial Day tradition since 1948.

In Bakersfield, California, police brought a 2-year-old boy back to the neighborhood where he was found wandering alone last weekend. Detectives hope the boy might recognize his surroundings and lead them to his parents. The boy speaks only Spanish and says his name is Mateo (ph).

They were conjoined at the head and separated during a delicate operation in Los Angeles last year. Now twin girls from Guatemala are returning to UCLA's Children's Hospital for more treatment. One of the twins is suffering from fluid on the brain. You are looking at a live picture waiting to bring these girls back to UCLA for more treatment. We wish them only the best of luck.

And is Iran giving al Qaeda a freehand or is it tying the hands of terrorists?

Senior U.S. intelligence officials tell CNN there are indications Iran at some point has detained top al Qaeda officials, but there are mixed signals coming from Tehran.

Let's go live to our justice correspondent, Kelli Arena -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, intelligence officials have long said there was a suspected al Qaeda presence in Iran. New information seems to suggest not only are al Qaeda members in the country, but they may be operational.

(BEGIN VIDEOTAPE)

ARENA (voice-over): Saif al Adel is believed to be al Qaeda's top operational planner, third in the chain of command. Officials believe he may have played a role in the recent bombings that killed eight Americans in Saudi Arabia. Senior officials suggest Iran had others in custody at some point, but beyond, that the intelligence is murky.

DONALD RUMSFELD, DEFENSE SECRETARY: There is no question that there have been and are today senior al Qaeda leaders in Iran, and they are busy.

ARENA: Despite repeated denials of an al Qaeda presence in Iran, CNN has learned Iranian officials told a U.N. representative during a Thursday meeting that Iran does have several unnamed al Qaeda operatives in custody. But U.S. Officials say it is unclear whether the operatives are allowed to receive visitors and communicate. If they are, the U.S. says, that would amount to safe haven. The U.S. and Britain are demanding Iran turn al Qaeda over.

TONY BLAIR, BRITISH PRIME MINISTER: We have said very clearly to the Iranian government that harboring al Qaeda would be entirely unacceptable.

ARENA: Intercepts picked up around the time of last week's bombings is evidence, officials say, of an operation al Qaeda post in Iran. And that evidence in part led to raising the threat level to high alert in the United States.

BRUCE HOFEMAN, RAND COPR: Certainly Saif al Adel in recent months has been issuing propaganda and has been active in at least al Qaeda's more outward external communication, recruitment propaganda campaign.

(END VIDEOTAPE)

ARENA: Top Middle East experts point out there was optimism building about improved Iran-U.S. relations when it was revealed the two were holding talks about regional issue, and most importantly Iraq's nuclear program. But the U.S. refused to attend today's talks over the al Qaeda issue and they say any momentum that was building is now dead in its tracks -- Wolf.

BLITZER: Kelli Arena with us in Washington. Kelli, thanks very much.

Israel's Navy announced the seizure of a fishing vessel in Lebanon. But official say the ship had a more sinister purpose.

Let's go live to Kelly Wallace, she is joining us from Jerusalem -- Kelly.

KELLY WALLACE, CNN ANCHOR: Wolf, Israeli officials this is a disturbing development. They believe the ultimate goal here is setting up bomb-making schools in the Gaza strip.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): A narrator describes how to put a belt together for a suicide bombing mission. How to wear the device and where to stand to inflict the greatest damage. Just some of the information on 36 CD-ROMs the Israeli Navy says it found when it seized this fishing boat off the coast of Lebanon Wednesday. Israeli officials say it was a frightening discovery.

UNIDENTIFIED MALE: There's only one thing more deadly than terrorist weaponry and that's terrorist know how.

WALLACE: Also on board and headed for the Gaza strip according to Israeli officials, bomb-making equipment and a bomb-making expert, officials say trained by Hezbollah, the Shi'a Muslim militia backed by Iran, and Syria and based in southern Lebanon. The incident bears similarities to another ship, the Karine A, Israeli officials say. That ship was carrying 50 tons of weapons and was intercepted by Israel in January of last year, believed to be traveling from Iran and head for the Palestinian Authority. Then Israeli officials laid the blame at Palestinian President Yasser Arafat's door as they are doing now. Although they say they won't know for sure he's connected until the investigation wraps up.

UNIDENTIFIED MALE: What's absolutely clear to us is that Yasser Arafat is trying every way possible to escalate the situation in the territories.

WALLACE: An Arafat spokesman responded telling CNN, quote, this is part of the Israeli campaign to smear the Palestinian Liberation organization and to avoid implementing the road map. We have nothing to do with this.

As this was unfolding, new Palestinian Prime Minister Mahmoud Abbas and his top security officials held their first talks Thursday evening with leaders of the radical Palestinian group Hamas, which has claimed responsibility for four of the five recent suicide bombings against Israelis. The prime minister is trying to convince the group to stop these attacks.

(END VIDEOTAPE)

WALLACE: But those meetings wrapped up with no agreement other than to talk again some time soon -- Wolf.

BLITZER: Kelly Wallace in Jerusalem. Kelly, thanks very much.

It's a $350 billion tax cut plan. But what does that mean for your wallet? How much money could it save you? We'll break down the tax bill that President Bush says he'll sign into law.

And imagine if you played sports in a country where you were beaten and imprisoned if you lost. It happened in Iraq. We'll have some chilling stories of athletes who were tortured under the regime of Saddam Hussein.

(COMMERCIAL BREAK)

BLITZER: If you work and pay taxes, payday could be coming to you in a matter of weeks. But how much money will Uncle Sam be putting in your wallet? We'll tell you. That's coming up on WOLF BLITZER REPORTS. (COMMERCIAL BREAK)

BLITZER: Welcome back.

It looks like American taxpayers will be getting an almost $350 billion tax break. But will it jumpstart the economy? And what exactly will it mean for your family?

Here to sort through all of this, CNN's Kathleen Hays. She's joining us now live from New York.

Kathleen, tell us what this means, bottom line, for our viewers.

KATHLEEN HAYS, CNNfn CORRESPONDENT: Well, Wolf, economists say unfortunately the tax package probably isn't big enough to really boost the economy a whole lot. However, it is big enough to put smiles on the faces of more than one American family.

Here's why.

(BEGIN VIDEO CLIP)

HAYS (voice-over): For cash-strapped families across America, the tax story isn't about politics, it's about pocketbooks. As in ,what are the president's tax cuts doing for me?

SCOTT HODGE, TAX FOUNDATION: For your typical family in the middle at about $60,000 to $62,000 a year, they'll see their tax bill cut by 25 percent this year right off the bat.

HAYS: Here's the typical family: dad works, but he's worried about keeping his job. Mom works, but she'd rather start her own small business. Two bratty kid in expensive day care. The cat and dog don't count.

Income? Just over $60,000.

Here's how much they save: getting married is getting sweeter; $233 is saved by eliminating the marriage tax penalty and more money to spend on soccer and piano lessons.

Eight hundred dollars is saved on the two kids, $400 for each.

And just for being a taxpayer, Uncle Sam is throwing in dollar $100 per family. Grand total? $1,133.

But that's not all. If you didn't use lose all your money in the stock market, you could save as much as $375 from the dividend and capital gains tax cuts.

And for lower income families, even bigger breaks.

HODGE: With lower income working couples, they'll see an even greater impact on their tax bill. A family of four earning, say, $40,000 a year would see almost their entire income tax bill wiped out this year. (END VIDEOTAPE)

HAYS: Overall, the nonpartisan Tax Foundation estimates that nearly 4 million working couples will see their tax bill entirely eliminated this year as a result of the tax changes -- Wolf.

BLITZER: All right. Kathleen Hays with some important details for us. Thanks Kathleen, very much.

Here's your chance to weigh in on this story. Our "Web question of the Day": "What do you plan on doing with your tax cut money? Give it to charity? Get out of debt? Save it? Spend it?"

We'll have the results later in this broadcast. Please vote at cnn.com/wolf. While you're there, I'd love to hear from you. Send me your comments. I'll try to head read some of them on the air each day at the end of this program.

That's also, of course, where you can read my daily online column, cnn.com/wolf.

Talk about performing under pressure. Imagine being imprisoned or tortured if you played badly in a sports game. It happened to some Iraqi athletes, many Iraqi athletes. That's coming up immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: With the fall of Saddam Hussein, Iraqi athletes are coming forward with graphic stories about their brutal treatment from the Iraqi leader and his son Uday who was president of Iraq's Olympic committee. As many of you will remember, CNN's Karl Penhaul first brought you some of these stories only a few weeks ago.

Now the award-wing filmmaker, Jon Alpert he's traveled to Iraq as well and met some of the athletes who were brutally tortured. Alpert's film was shown on HBO Tuesday. It will be repeated this weekend. Remarkable work. John's joining us now live from New York.

Jon, I want to show our viewers a brief clip, an excerpt. Frank DeFord narrating this excerpt from your piece on the torture of Iraqi athletes who didn't do precisely what Uday Hussein wanted them to do.

(BEGIN VIDEO CLIP)

JOHN DEFORD, NARRATOR (voice-over): After a day's worth of beating, after their skins had been whipped raw, the players were taken to the tower. They climbed 90 feet up the ladder one more hour of punishment.

UNIDENTIFIED MALE (through subtitles): The whole team had to dive into a vat of raw sewage. It happened to me. It happened right here.

(END VIDEO CLIP) BLITZER: That's an amazing thing. They had to jump down from that tower, Jon, into a vat of sewage because they lost the game or didn't perform as well as Uday Hussein wanted them to perform?

JON ALPERT, HBO PRODUCER: Yes. On that particular occasion they were kept in that torture camp for two weeks. And they were taken in the morning, they were run, they were whipped, they were beaten. And then for one hour at end of the day they had to dive into the sewage.

BLITZER: Did Uday Hussein believe that torturing these star athletes, these soccer players, others, that that would get them over the top, if you will?

ALPERT: Well I think that perhaps he might have thought that. But the other thing he was doing is he was taking the heroes of Iraq, the people who everybody looked up to and he was showing everybody else in Iraq that nobody was beyond his reach. And it was I think part of the way in which he terrorized the population.

BLITZER: And even the best, the coaches, the managers, the stars, they were brutalized as well. Talk a little bit about that, what you learned.

ALPERT: Even the sports announcers, Wolf. You'd be in trouble. If he didn't like you for whatever particular reason -- was there one sports announcer he had his guards break his arms, break his legs and then he demanded the x-rays. He looked at the x-rays and said you know guys didn't break enough bones. And sent this poor guy back to get more of his bones broken. It was unbelievable.

BLITZER: I saw that in the piece. He was once a star athlete, then he became an announcer.

Uday Hussein, what was he? Just he a brutal sadist? Is that what this was all about?

ALPERT: It seemed to be, you know -- he really, in -- in one part wanted some of the adulation that the athletes were getting from the population and people didn't like him. And I think he was jealous and he took out some of his jealousy on people.

And he destroyed these athletes psychologically. You know when the game is on the line the star athletes want the ball. Well, none of these guys wanted the ball. If the game had to be decided by penalty kicks, they ran the other way because they didn't want to miss because they knew what was happening. They'd get tortured.

BLITZER: And during the U.S. bombing we knew that the Olympic Headquarters, the Iraqi Olympics Headquarters Building was bombed. A lot of people knew what was going on inside that building, experts on Iraq -- what was going on. That's where a lot of these athletes were tortured.

ALPERT: Yes, Uday had a private jail in the basement. And if he wasn't really mad at you he would take you there. If he was really angry you go to one of the main prisons.

But one of the problems is when we bombed that center, we destroyed all the records and statistics about athletics in Iraq. And after the bombing, the looters got loose, and they stripped every single athletic facility in the country.

So now there's no record. You could be the shot put champion of Iraq, nobody knows. And records are really important and athletes don't have anywhere to practice because absolutely everything in the country has been stolen by the looters.

BLITZER: They're basically starting from scratch.

Jon Alpert, you did some important work. Karl Penhaul did important reporting for us as well earlier. Thanks to both of you for all this useful information. The Iraqi people are resilient. They'll come back, they'll come back on the sports field as well.

And what do you plan on doing with your tax cut money? The results of "Our Web Question" immediately when we come back.

(COMMERCIAL BREAK)

BLITZER: You remember those conjoined twins from Guatemala who were separated at the UCLA Medical Center? Well they've come back to Los Angeles for additional treatment. You're looking at these pictures just seconds ago. They are back on the ground. They'll be driven over to UCLA, both of these girls for the specialized treatment. One of them apparently has some fluid on the brain. We wish them only, only the best of luck.

Let's move on now and see how you're weighing in on "Our Web Question of the Day." Remember, we've been asking you this, what do you plan on doing with your tax cut money? Look at this, 5 percent of you say give it to charity, 31 percent of you say get out of debt, 41 percent said save it, 23 percent said spend it. As always, we tell you this always, of course, is not a scientific poll.

Let's get to some of your e-mail. Bentley asked this question: "If the tax cut is so good for the economy, why doesn't President Bush and Congress just do away with taxes altogether and let the good times roll?"

On the terror alert Ed write, "The color-code system is silly. People have stopped reacting to these warnings because they have lost all urgency. It's the proverbial boy who cried wolf syndrome."

But Carolyn disagrees. "People should not be confused about the terror alert system. The safety of years pass has spoiled us. Now we need to pay attention to the warnings and take responsibility for our own safety and the safety of others."

(NEWSBREAK)

BLITZER: That's all the time I have. Lou Dobbs is standing by in New York to pick up our coverage. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com