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CNN Wolf Blitzer Reports

U.S. Interests in Africa Once Again Targeted for Attack?; Intelligence Analysts Increasingly Becoming Convinced Saddam Alive in Iraq

Aired June 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.


(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Terror warning. Are U.S. interests in Africa once again targeted for attack?

An urgent appeal to save a peace plan.

COLIN POWELL, SECRETARY OF STATE: You must not allow terrorists to win.

BLITZER: How Jerusalem residents are coping.

UNIDENTIFIED MALE: I think the price of going to something like this (UNINTELLIGIBLE) this. But that is just everything. And they don't left nothing. But you don't.

BLITZER: Is Saddam Hussein still alive? Tips, intercepts and possible sightings. The latest from U.S. intelligence.

A comrade lost to a sniper's bullet.

UNIDENTIFIED MALE: Always looking forward to going home and going to see his son.

BLITZER: Arizona ablaze. Fire sweeps through a mountainside community.

Wild about William. And wild about Harry. A big weekend for two British lads.

(END VIDEOTAPE)

BLITZER: Thanks very much for joining us. We're following many developments, including the latest on Secretary of State Colin Powell's talks here in Jerusalem as well as in Jericho with Israeli and Palestinian leaders. Much more on that coming up.

But first, we begin with a developing story. Word of a possible terror plot against the United States interests in Africa. Nearly five years after terrorists destroyed two U.S. embassies there, there's an urgent warning that the new U.S. embassy in Kenya may be targeted. Let's go live to CNN's Barbara Starr. She has details at the Pentagon -- Barbara. BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Wolf, this all began because yesterday the Pentagon's Defense Intelligence Agency issued a terrorism threat warning to U.S. government authorities warning them about the possibility of what they said was an imminent terrorist attack against U.S. interests in Kenya. The Pentagon said that information was specific, was credible, and was tied to the al Qaeda, which of course, has operated in east Africa for years.

And today, indeed, the State Department shut down the U.S. embassy in Nairobi, that embassy rebuilt after the 1998 bombing of the original U.S. embassy in Nairobi. The State Department was not clear today about when it plans to reopen the building.

(BEGIN VIDEO CLIP)

PHILIP REEKER, STATE DEPARTMENT SPOKESMAN: We do expect that the embassy in Nairobi, Kenya, will remain closed Monday and Tuesday, but obviously we'll keep you current on that as the weekend goes by and those days arrive.

(END VIDEO CLIP)

STARR: The Pentagon also said in this classified report that it now considers the threat level in Kenya to be high. And by Pentagon standards, there's some very unsettling words about what that means. The Pentagon says that means that anti-U.S. terrorists are operating actively in the region, and that they may be planning to use large mass-casualty-producing attacks against U.S. facilities. That's what led the Pentagon to raise the warning level in Kenya -- the threat of that.

And of course, again, Kenya being an area of ongoing concern to the United States, even after 1998. Several months ago, of course, the attack against the Israeli-owned hotel in Mombassa, concerns that the al Qaeda was basically casing airports in Kenya, leading to a cutback in commercial air traffic there. But this latest warning is said to be very specific, very credible. New, fresh information about the concerns about a possible terrorist attack in east Africa -- Wolf.

BLITZER: Very ominous development. Thanks very much. Barbara Starr at the Pentagon.

Let's continue at the Pentagon. There's new indications that Saddam Hussein is alive. For that, let's bring in our senior Pentagon correspondent, Jamie McIntyre. He's following this story -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf. While the fate of Saddam Hussein remains uncertain, U.S. intelligence analysts are increasingly becoming convinced that he's alive in Iraq, especially based on evidence or intelligence that has collected over the past few weeks.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Excavation of the two sites in Baghdad where the U.S. tried to kill Saddam Hussein with decapitation air strikes has produced no evidence he was at either place. And U.S. officials say scraps of information from local citizens and in interrogations of captured regime members, have convinced many U.S. intelligence analysts it's likely Saddam is alive and hiding in Iraq. But the official U.S. government answer from the White House on down is no one knows.

LT. GEN. JAY GARNER (RET.), FORMER IRAQI ADMINISTRATOR: I talked to Iraqis that told me he was alive and I have talked to Iraqis that told me he's dead. Those that said he's alive generally outnumber those that said he was dead. I don't know whether he is alive or dead.

MCINTYRE: U.S. officials tell CNN General Abid Hamid Mahmud, Saddam Hussein's closest confident has been talking since his capture by U.S. Special Operations forces Monday, but officials won't characterize what he's saying. And Pentagon sources say so far, most senior regime members haven't disclosed much of value. A U.S. Special Operations team, code name "Task Force 20", which took part in the rescue of Private Jessica Lynch, is spearheading the manhunt for the fugitive Iraqi leader, and Pentagon officials continue to express confidence they'll get him.

VICTORIA CLARKE, PENTAGON SPOKESWOMAN: It's important to get final determination, as I call it, of his status or his whereabouts, as we want to have all of the Iraqi leadership. And we'll do it. We're working through the now infamous deck of cards. We're working through that pretty significantly. And we will get there.

(END VIDEOTAPE)

MCINTYRE: U.S. commanders believe that getting Saddam Hussein is key to stopping the attacks that have been inflicting almost daily casualties against U.S. forces. The Pentagon has been reluctant to say the U.S. is fighting guerrillas, but this week on Capitol Hill, Deputy Defense Secretary Paul Wolfowitz said as much, saying it was a guerrilla war, but one that he insisted the U.S. would win -- Wolf.

BLITZER: Jamie McIntyre at the Pentagon. Thanks, Jamie, very much.

Here in the Middle East there are dramatic developments unfolding as the U.S. braces possibly for an explosion -- another round of violence between Israelis and Palestinians. One reason why President Bush dispatched one of his top diplomatic troubleshooters to the region.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Unfortunately for Secretary of State Colin Powell, he found himself in yet another familiar predicament, his latest effort to promote peace a disappointment. Not much headway, at least not in public.

He and his aides have been hoping to get word from Palestinian prime minister, Mahmoud Abbas, that Hamas and other militant Palestinian groups would accept a cease-fire in their terror attacks against Israel. The best Abbas could offer Powell publicly, following their talks in the West Bank town of Jericho, was a promise to keep trying.

MAHMOUD ABBAS, PALESTINIAN PRIME MINISTER (through translator): I am confident -- highly confident that we will reach an agreement with all these organizations.

BLITZER: Earlier, following a separate round of talks with Israeli prime minister, Ariel Sharon, in Jerusalem, the Secretary of State lashed out at Hamas.

POWELL: The enemy of peace has been Hamas, especially over the last two weeks.

BLITZER: To that, Abdel Aziz Rantisi, the Hamas leader, who was nearly assassinated by the Israelis in Gaza earlier this month, lashed right back at Powell.

ABDEL AZIZ RANTISI, HAMAS LEADER: He is totally with the Israeli terror against Palestinian rights. He is an enemy to Palestinians.

BLITZER: While the war of words was playing out, yet another deadly incident. An Israeli motorist driving through the West Bank was shot and killed. Three other passengers wounded, two seriously. Israeli military sources blame Palestinian gunmen. It is precisely these kinds of attacks that strengthen Prime Minister Sharon's refusal to abandon his policy of targeting suspected terrorists for assassination despite urgings from Washington.

ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): We have to make sure there are no independent terror organizations on the ground. The terror organizations must be fought.

BLITZER: Despite the disappointment, top Bush administration officials promised to keep on pushing. To underline President Bush's commitment to advance his road map, hailed by all sides only two weeks ago at the Aqaba Summit, he's dispatching his national security adviser, Condoleezza Rice, to the region next week in an effort to pick up where Powell left off.

(END VIDEOTAPE)

BLITZER: And Israelis and Palestinians say they're deeply looking forward to that visit by Condoleezza Rice.

Much more news coming up, including this. Off the rails. Dramatic developments happening right now. We'll go live to California, where an out of control train barreled into nearby homes.

Plus, blazing Arizona. Fire season goes up in flames.

And...

(BEGIN VIDEO CLIP)

BLITZER: If you just arrived in Jerusalem unaware of the history of this city, you would never know how real the terror threat is. That's because the people who here are not determined to let the terrorists win. They go on with their lives as normally as they can. That's a determination almost all of them seem to possess.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Hundreds of homes are destroyed, and more are threatened by a wildfire in Arizona. We'll go there live. Stay with us.

(COMMERCIAL BREAK)

BLITZER: From the air, it looks like a big box of spilled matches and toothpicks. A runaway freight train -- a big one -- derailed in Commerce, California, crashed into several homes and spilled its load of lumber. Our national correspondent, Frank Buckley, is on the scene for us. He's there. He's joining us now live with details. Frank, how bad is it?

FRANK BUCKLEY, CNN CORRESPONDENT: Wolf, it's a spectacular derailment, but the good news so far, at least, is that so far there are no fatalities reported here and no serious injuries. As we take you upstairs to give you an aerial view of this scene here, as you say, it's a spectacular site. An incredible scene with these cars from a runaway freight train, as we have now been told, took off. They left from Montclaire, several miles from here and then derailed in the City of Commerce.

The train cars went into some homes, in fact, four homes were damaged. Two of them, were told by L.A. County Fire, were completely demolished. Right now, I just saw some dogs and some firefighters from the L.A. County Urban Search and Rescue going through the homes to make sure there are no additional victims trapped. We want to give you a sense, now, of what it's like up-close on the ground, where the train derailed.

Here's what it looked like to us just a few minutes ago. This is what it looks like up close. You can barely recognize these were cars that were attached to a freight train. Twisted metal, lumber that has piled over into one of the yards here that is next to the train track. And just to give you a sense of how devastating this was, this is actually part of the train track itself. And it has come into this yard that is next to the train track area. And then just beyond all of this debris in this yard, you can see that the train went over and went into a residence that was next-door.

And right now, L.A. County Fire Urban Search and Rescue still working the scene to make sure there are no additional victims. As we know it, the L.A. County Fire says that 11 cars from this runaway freight train ended up here. Initially there were 31 cars that were reported by Union Pacific. Exactly what the status of those 20 additional cars, it's not clear. We're not told that there's any imminent danger from those. We just know where they are. We know that 11 cars derailed at this scene, all carrying lumber. No hazardous materials as far as we know, just lumber. It's a spectacular site there. And Montclaire, where this train began its journey, is 27 miles away. don't know how many rail miles it is, but 27 miles in a straight line, from Montclaire to this location. So no engine, no locomotive attached to these cars. They simply started moving from a switching yard, they couldn't be stopped and they ended up derailing here in the City of Commerce -- Wolf.

BLITZER: Frank Buckley, he's just southeast of Los Angeles. Thanks for that report.

Let's move on to some other dramatic pictures. We want to show you this. This is not the way for a dip in a neighborhood pool, by the way. Fortunately the two people who were in this car survived today's accident in Farmingham, Massachusetts. The driver apparently lost control and the car ended up in a backyard swimming pool. No details on just how it happened.

There are details on what's going on in Arizona. Five thousand acres up in flames so far, and some 500 homes already destroyed, half of them in one community alone. Let's get details from our affiliate reporter, Carey Pena. She's joining us from our affiliate KTVK. Carey, tell us about it.

CAREY PENA, KTVK CORRESPONDENT: Well, Wolf, the Aspen fire continues to burn out of control on Mount Lemmon, which is just outside of Tucson. Mount Lemmon is an area that has a cluster of small cabin communities on it. One of those communities, called Summerhaven, was ravaged by fire yesterday. The fire jumped the line about 11:30 and burned up about half of that community.

Fire officials estimate between 200 and 250 structures may be lost. One of those structures we just learned is the Alpine Lodge, which was a well-known landmark for more than 40 years. Many of the residents on Mount Lemmon fuel their homes with propane, so firefighters are dealing with explosions and hazardous materials. One firefighter we talked to yesterday said it looked like a war zone. He said that the street signs had all melted. And you can't even tell where you were when you were up there.

Right now, nearly 700 firefighters are trying to get a handle on the Aspen fire, but by tomorrow, there may be up to 1,000 firefighters here in southern Arizona. The governor of the state, Janet Napolitano, declared a state of emergency and put National Guard troops on standby. We just had a press briefing around 11:00. Some good news to report. Firefighters were able to save about 60 homes yesterday, and they are working fast and furious up on Mount Lemmon at this hour -- Wolf.

So we are covering this and we will have more coming up late on in the day.

BLITZER: All right. Carey Pena, thanks very much. Carey is with our affiliate out in Arizona, KTVK.

Last-minute hail Mary for a rich rapist. The Max Factor heir looks for a way out of prison.

Also, the mayor of Modesto, California on Scott Peterson. Details of their meeting that left a lasting impression about the murder case.

Plus, fund-raising full steam ahead. President Bush looks to 2004, but can he avoid the mistakes of his father? We'll take you on the road. Our John King is standing by for that. Stay with us.

(COMMERCIAL BREAK)

BLITZER: New evidence has emerged in the fatal hit and run accident that led to the arrest and resignation of a Catholic bishop in Arizona. Court documents now show the police detective saw hair and blood spatter on the windshield and roof of Phoenix Bishop Thomas O'Brien's car. O'Brien told police he believed he had struck a cat or dog, or that a rock had hit the vehicle. O'Brien was charged with the accident earlier this week. He resigned his church post on Wednesday.

A spokesman sense the Catholic archdiocese of Boston hopes to put forth a deal next week to settle hundreds of claims of sexual abuse by priest. Lawyers representing alleged sex abuse victims have complained the archdiocese had made little progress towards resolving the matter. The Reverend Christopher Coyne said today the church has been selling real estate holdings to raise some $15 million toward the settlement. Boston's archdiocese has been under fire since evidence emerged it had allowed known pedophile priests to remain in active ministry. Its leader, Cardinal Bernard Law resigned last December.

The fugitive cosmetic's heir and convicted rapist, Andrew Luster, was returned to the United States yesterday. His lawyers now very active trying to help this convicted rapist. Our Charles Feldman has been following this case. He's joining us, now, live -- Charles.

CHARLES FELDMAN, CNN CORRESPONDENT: Wolf, before we get to Andrew Luster, some late news courtesy out of CNN's Mexico City bureau. They tell us that Duane "Dog" Chapman, that's the bounty hunter who caught up with Andrew Luster, went before a judge not too long ago in Mexico. He remains in jail there, because Mexico does not look kindly upon bounty hunters. The judge, we are told, has 72 hours to decide whether or not there is enough evidence to put Mr. Chapman on trial on charges of illegally depriving Andrew Luster of his freedom. The other possibility, of course, is the judge may decide there is not ample evidence and let Mr. Chapman go.

As for Andrew Luster himself, as you pointed out, Wolf, he is back in the U.S., and his lawyers -- the legal maneuvering has already begun.

(BEGIN VIDEOTAPE)

FELDMAN (voice-over): While Andrew Luster sits in a prison some 100 miles from Los Angeles, his lawyer went back to court early Friday to pick up where he left off on an appeal of his client's conviction for drugging and raping three women. And what is the basis for an appeal? Let the lawyer count the ways. ROGER DIAMOND, ANDREW LUSTER'S ATTORNEY: There were at least about 25 legal errors that we believe were committed during the trial, and therefore, we believe that if the appeal were actually heard on its merits, Andrew Luster would have a good chance of getting his conviction reversed.

FELDMAN: In an age where there seems to be a home video of just about everything, no surprise here that there are home video of Mexican police taking Luster into custody. This happened after Luster was tracked down by the bounty hunter named Dog, who was, as we said, also taken into custody. Luster was quickly taken back to the United States by FBI agents, sent off to begin serving his 124-year prison term.

(END VIDEOTAPE)

FELDMAN: And, Wolf, if he lives this long, when he gets out, Luster will be 163 -- Wolf.

BLITZER: Charles Feldman, once again updating us on this case. Thanks very much. Charles, let's move north a bit to Modesto, California.

The mayor there, at least in his hometown, has become front-page news because of a meeting he had with Scott Peterson and the memo he subsequently wrote to police after that meeting. Mayor Carmen Sabatino is joining us now live from Modesto. Mayor, thanks for joining us. Tell us what's going on here. You met with Scott Peterson and then wrote a memo to the police. Why?

CARMEN SABATINO, MAYOR, MODESTO, CALIFORNIA: I met with Scott on January 3, and I wrote the memo the same day. I talked to Police Chief Wasden earlier and he wasn't too excited about my having the meeting, but at that time, Scott Peterson was the husband of Laci Peterson looking for his wife. So I met him at a coffee shop downtown.

BLITZER: Did the police discourage you from meeting him? Did they want you to ask specific questions? What was their rationale -- what was their attitude going into the meeting?

SABATINO: Well, I really don't know. The police chief didn't know when the meeting was going to occur or what have you. I just sensed that he probably felt that I shouldn't get involved in the investigation.

BLITZER: What was Scott like during that meeting?

SABATINO: I thought he was anxious. The purpose of the meeting, according to his invitation, was to thank the city of Modesto for what they were doing, and he was praising the Police Chief Wasden for what he was doing. And, so I took it at that. That's all really that was discussed. I asked him how he was doing, and he said that nights and mornings were difficult for him, but during the day, he kept occupied. And that was the extent of our meeting.

(CROSSTALK)

BLITZER: Did you believe -- did you believe -- Mayor, did you believe him? Did you get the sense this guy was telling you the truth, or were you suspicious during that session?

SABATINO: I guess my reaction was that if it had been me, I would have been in more grief, but that's a subjective decision how people handle grief.

BLITZER: Mayor, you know your community, obviously, quite well. Do you believe Scott Peterson can get a fair trial in Modesto, or should they move it to a different location?

SABATINO: According to the district attorney, we don't have the money to really try this case. I said before that it would take quite a while for us to assemble a jury. You have to remember that the real story in this case, as I've kept telling the media, is how our city has reacted to these tragedies that have occurred here. And we had thousands of people searching for Laci, and now we expect them to be jurors. I'm sure that it's possible, but that's up for a judge to decide.

BLITZER: Mayor, as you well know, there's a corruption scandal in your community, and some are suggesting -- some of your critics are suggesting that could have influenced your behavior in connection with the Laci Peterson/Scott Peterson affair. Does it have any influence at all?

SABATINO: No, I think my behavior throughout this thing has been to promote the city of Modesto, and to repeat what I just said, that we are a good city. The district attorney has begun, nine months ago, an investigation of me, and it's time for the district attorney to put up or shut up. He has spent $200,000 on my case and yet he doesn't have -- according to him, he'd like to shift this over to a grand jury. On December 9, I asked for a grand jury investigation, and now I've got it.

BLITZER: All right. Mayor, I want to thank you for joining us, updating our viewers in what's happening in Modesto. Your community has been rocked with a lot of events, as you well know, over these past several years. Thank you very much.

Let's move on -- and thanks, mayor, we are going to have to leave it right there, unfortunately.

President Bush hits the campaign trail running with a domestic focus, and lots -- lots of fund-raising that he hopes will help him say on top with the voters.

Plus, busted again. Jose Conseco's run-in with the law over steroids.

And reality TV in the courtroom. "Crime & Punishment" takes you inside. I'll talk with its creator.

Stay with us. (COMMERCIAL BREAK)

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS, live from the Middle East. Reporting from Jerusalem, here's Wolf Blitzer.

BLITZER: Welcome back to CNN. President Bush is on the campaign. He's talking about the economy. Our John King is standing by to fill us in on the strategy, the fund-raising strategy for reelection.

First, though, the latest headlines.

(NEWSBREAK)

BLITZER: President Bush now is in Georgia getting ready for his next leg of a fund-raising ordeal. It's a huge effort to try to make sure he has enough money in his campaign coffers to get re-elected.

Our John King is standing by. He's in Greensboro, Georgia, with a little analysis of what's going on. The president seems to be very active on this front. Any setbacks at all on the political front, John?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Not when it comes to fund-raising, Wolf. The president focusing on the economy of politics, if you will, tonight.

He landed just a short time ago at Greensboro Airport, Green County Airport here in Georgia. He'll be here soon at this golf resort in Greensboro, where an old friend, Mercer Reynolds, who was once an ambassador in the Bush administration, a longtime business partner of President Bush, he owns this resort, and he is the host tonight for a fundraiser that will bring in more than $2 million for the Bush campaign.

This is the second fundraiser this week for the president. The vice-president and first lady also are out as well. The president will shatter all records in this campaign, his aides say, including raising some $20 million just by the end of this month, June, which is the first official reporting period.

It comes in a week in which the president is not only kicking off his fundraising effort, but also turning more and more attention to the issue that all have his aides believe will be the defining issue in the campaign to come, and that is, of course, the strength of the U.S. economy.

Mr. Bush staged three events this week on the economy. The first event was touring a pasta factory up in New Jersey earlier in the week, and Mr. Bush went to a Northern Virginia community college to focus on job training efforts, then out to a high-tech plant in Minnesota just yesterday, the president trying to make the case that the economy is beginning to come back. The stock market has had a pretty good stretch as of late, and recent data from the government suggests the economy is beginning to grow again, and the president wants to make the case to voters that his big tax cuts are one of the reasons the economy is beginning to come back.

The Democrats, of course, have a very different view. They are harshly critical of the Bush tax cut. But in the early days of fund- raising, the president also spending some time, you might say in the early days of campaigning, trying to frame the economic debate, which of course will take center stage, much more so, Wolf, when we get into the presidential campaign in full swing some time next year.

Again, though, the focus tonight here is filling up the campaign coffers, more than $2 million for the Bush-Cheney re-election campaign to be raised here tonight -- Wolf.

BLITZER: All right. John King, you're on reporting this story for us from Georgia. Thanks, John, very much.

This note. This has been an unusually busy month for Bush team members, as they travel across the country in a bid to raise $20 million for the president's reelection campaign. In addition to the president, first lady Laura Bush and Vice-President Cheney also will be on the road. The ultimate goal: up to $170 million for next year's reelection campaign effort.

Here's your chance to weigh in on this story. "Our Web Question of the Day" is this: "How do you rate President Bush's job performance on the economy? Excellent? Average? Poor? " We'll have the results later in this broadcast. You can vote at cnn.com/wolf.

While you're there, we'd of course love to hear directly from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

The other day we showed you a dramatic report from Ramallah, how Palestinians are coping living under Israeli military occupation. Today we take a look at how the Israelis are living with the ever- present threat of terrorism.

(BEGIN VIDEOTAPE)

BLITZER: (voice-over): This is what the Cafe Moment looked like just a little more than a year ago. It was March 9, 2002, when a Palestinian suicide bomber walked into the packed Jerusalem night spot and detonated the explosive belt he was wearing, killing 11 people and injuring 54 others. The crowded cafe, especially popular with young Israelis, was destroyed.

I was here in June 2002, only three months after the blast. Reconstruction then was already well on the way.

And this is the Cafe Moment today. It's been rebuilt and is clearly back in business, though by no means the same.

YORAM COHEN, MOMENT CAFE OWNER: To rebuild doesn't mean just to rebuild a foundation. It's to rebuild foundations of humans.

BLITZER: Yoram Cohen is the owner. He was inside during the bombing.

COHEN: The second of the blast, I flew over the bar from the impact of the bomb, and somehow I got up.

BLITZER: He says he's been getting up every day since.

(on camera): If you just arrived in Jerusalem unaware of the history of this city, you'd never know how real the threat is. That's because the people who live here are determined not to let the terrorists win. They go on with their lives as normally as they can. That's a determination almost all of them seem to possess.

Rafi Fridj was at the Cafe Moment the night of the bombing, but had left only five minutes earlier. He makes a point of still coming back.

RAFI FRIDJ, CAFE PATRON: You have to continue with your life. You don't -- you cannot live the terror -- let the terror win and let the terror change your normal life.

BLITZER: Indeed, strolling or driving around Jerusalem and other Israeli cities underscores that determination to live ordinary lives during extraordinary times.

Despite the numerous bus bombings, most recently on June 11, people still climb aboard, in part, they say, because they can't afford more expensive forms of transportation.

And they still go to the Cafe Moment.

DAVID YAKIN, CAFE PATRON: In the first few months of the bombing, it really was a little bit scary, I think, thoughts of going to something like this, a place like this. But you get used to everything. And you don't let nothing get you down.

BLITZER: And they still yearn for the ordinary, even as they keep a weary eye for anything out of the ordinary.

(END VIDEOTAPE)

BLITZER: I think it's fair to say these are pretty remarkable people living under these circumstances.

We have more news coming up, including some lighter news, including this: one British lad has a big weekend ahead. The witching hour is fast approaching for Harry Potter fans, especially in London. We'll go live to London for a magical peek.

Plus, we'll get an inside look at a reality show that has high stakes with real outcomes.

But first, let's fake a look at some other news making headlines "Around the World."

(BEGIN VIDEOTAPE) BLITZER (vice-over): Deadly blast in Chechnya. A truck packed explosives blew up outside the headquarters of the special police in Grozny, killing the two suicide attackers driving the vehicle. Dozens of poeple were wounded.

Kidnapping in Congo. Two U.N. military observers were abducted by unknown assailants in the eastern part of the country. Latest reports say the two men are still alive.

Pledge reneged. Liberian President Charles Taylor says he will serve to the end of his term in January next year and might run again. Earlier this month, Taylor said he would step aside early in a bid to end Liberia's three-year civil war.

Summit violence. Greek riot police fired tear gas to drive back anticapitalist protesters at a beachside resort hositng a meeting of European Union leaders. Most of the some 10, 000 protesters marched peacefully.

Extreme protest. Two Iranian men set themselves on fire near the French embassy in London. The flames were qucikly put out. The men were protesting the French arrest of Iranian opposition leaders Tuesday.

Big bang. Russian scientists are at the site where at least one large meteorite slammed into Siberia last year. One of the scientists now says he thinks at least two hit the area, burning and uprooting trees and underbrush.

Only the British. They call it extreme ironing, and a British woman is said to be the first to extreme iron in the Grand Canyon. Her moniker, what else? What else, but crease.

And that's our look "Around the World."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: A magical hour is approaching for Harry Potter, including a magical hour for our own Richard Quest. He's standing by live in London. We'll go there next.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Earlier we asked: "Besides non- copyrighted books like the Koran and the Bible, what's the best- selling book ever? The answer, "Guinness World Records." More than 94 million copies in 37 languages have been sold around the world.

(END VIDEOTAPE)

BLITZER: Welcome back. We're bracing for two major events in London: the 21st birthday part for Prince William; also the release of the new Harry Potter books.

No one -- no one more qualified to talk about both of these subjects than our own wizard, Richard Quest. He's joining us live from London.

How excited, Richard are people in London right now?

RICHARD QUEST, CNN CORRESPONDENT: Good evening to you, Wolf.

Yes, well, as you can imagine, the action -- the excitement -- we're now just a couple of hours away from the launch of the Harry Potter book. You said that perhaps nobody is more qualified than me as the wizard, but I have behind me, of course, the real wizard, Professor Dumbledore, and the children who are now getting ready for their first glimpse and their first look at this particular book, "Harry Potter and the Order of the Phoenix, " which will be released in Britain.

It's already been released, of course, now in Australia through India, and large parts of the rest of the world where, of course, it's already gone through midnight.

But quite interestingly, the book in Britain will go on sale at midnight at a discount, Wolf, because various Web sites lime amazon.com have been selling it at a discount, so leading stores like Waterstone's here will also have to sell it at a discount.

This particular party, they're going to open up a big trunk, the books will be distributed, and there will be all manner of fun and frivolity.

Now the other event, of course -- and I don't -- we're not talking about Harry on this occasion -- we're talking about Harry Potter. But now let's talk about Prince William, because two of Britain's top icons are topping the news this weekend. The other one, of course, the 21st birthday celebration of his royal highness, Prince William.

Now he doesn't actually use his royal highness because he still prefers to be called William Windsor. But from our point of view, of course, he's 21 on Saturday. We've seen some new pictures of the heir to the throne. They were released by Buckingham Palace. They show not only William, but also Prince Charles and of course Harry -- not Harry Potter, Prince Harry.

It's getting confusing this, Wolf. You've got to keep up with me on this one, play with me on this one a bit on this. This is -- as they were playing a polo match with their father.

So two icons at different extremes. Prince William, described as one of the most eligible bachelors in the world, even though he's just 21, and Harry Potter, who's considerably younger and probably considerably wealthier. BLITZER: Richard Quest, thanks very much. Prince William, Harry Potter -- of course there's also Prince Harry, but we'll leave that for another day. Richard Quest covering those stories for us as only he can do. Thank you, Richard.

When we come back, it's real-life drama, very real-life drama. A TV show with real outcomes returns for its second season. We'll get an inside look.

Plus, in the midst of a crisis in the Middle East, people marched here in Jerusalem for a completely -- and I mean completely different cause. We'll have that story. You'll want to see it. Stay with us.

(COMMERCIAL BREAK)

BLITZER: It's a hit -- it's a hit, a huge hit across the United States, "Crime & Punishment" from NBC. It's beginning its second season -- about to begin its second season. The show chronicles real- life cases prosecuted by the San Diego District Attorney's office.

Here's a snippet from the show that will air this Sunday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The evidence will show that Emil Robashaw (ph) was under the influence of alcohol. The evidence will show that Emil Robashaw was driving the truck.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is a case really about who was driving. Ladies and gentlemen, the prosecution knows that their witnesses have lied.

(END VIDEO CLIP)

UNIDENTIFIED FEMALE: I have better. I just -- it's hard for me to part with my pictures.

UNIDENTIFIED MALE: This is an excellent picture. Is this, like, some school -- senior year? Junior year?

UNIDENTIFIED FEMALE: He didn't make it senior year.

(END VIDEO CLIP)

BLITZER: Joining us now to discuss why this series has become such a huge hit is the executive producer, Bill Guttentag. He's joining us from Los Angeles.

Bill, thanks very much. Why has your show so resonated with the American public? BILL GUTTENTAG, EXECUTIVE PRODUCER, "CRIME & PUNISHMENT": Well, I think that we endeavor to be the real-life "Law And Order." As I'm sure you know that we're part of the "Law and Order" family of shows, with Dick Wolf as sort of the captain of the ship, and I think that the American public, you know, cares about what we like to say is real reality.

I mean, if you watch reality TV these days, there's not a lot of reality in it. And I think we're presenting real cases, where the stakes are exceedingly high, and the drama is exceedingly high.

BLITZER: How do you go out about picking which cases to put on the air?

GUTTENTAG: Well, I think that we try to pick our cases the way "Law and Order" does, a case that has great drama, great tension.

And the thing about the cases that you'll see, Wolf, is that when someone is accused of a crime, they'll either walk out of the courtroom a free person or they'll go out the back of the courtroom in chains, depending on what decision the jury renders. And as powerful a show as "Law and Order" the other similar dramas are on TV, they use actors. And I love "Law and Order, " but in this case, everything is real. Every frame is real, and the stakes are exceedingly high, and I think the audience appreciates the fact that we're aiming quite high in quality.

BLITZER: When I spoke to Dick Wolf about a month or so ago, he made the point that they look at the headlines, they watch and see the real-life cases, which are on television, and then they use them as a potentially basis for "Law and Order." You don't have to do that. You just go ahead and find those cases in San Diego that are really powerful. Is that fair?

GUTTENTAG: Right. That's absolutely right.

I mean, if people go through states of extreme, you know, crisis. I mean, a woman will be raped, and she'll never have that day back, but with the district attorneys, you know, she can seek her day in court. And she depends on the district attorney's office for justice, and as an audience, we sit there hoping justice is achieved.

And so I think, as I said before, the stakes are exceedingly high, and, you know, we hope that an audience will get inside the head of the victims and inside the head of the prosecutors when the jury comes back before they read their decision, you know, they'll truly care what happens.

BLITZER: Bill Guttentag is the executive producer of "Crime & Punishment". He's got a new episode coming out Sunday night. We'll be watching, of course.

Bill, thanks for joining us here on our program.

GUTTENTAG: Thank you so much, Wolf.

BLITZER: Thank you. Thank you very much.

On June 9, 2003, CNN aired a report about the effectiveness of the taser electronic gun designed to incapacitate someone in the midst of a crime or attack. CNN's report included a demonstration of an M26 taser being fired at seven volunteers. In the demonstration, the M26 failed to incapacitate any of the seven. According to the manufacturer of the M26, Taser International, the specific gun used in the demonstration had a malfunctioning capacitator and was defective. CNN should have included Taser's response in all of its reports, and did not.

Taser says its own stud you of more than 1,600 field uses by law enforcement shows a 94 percent success rate with the M26.

Let's get back to the latest developments here in the Middle East. More controversy, if you can believe it -- more controversy here in Jerusalem. But you're not going to believe what that controversy is. Eyebrows will be raised.

Stay with us for that.

And our hot "Web Question of the Day" is this: "how do you rate President Bush's job performance on the economy?" We'll have the results later in this broadcast. Vote at cnn.com/wolf.

(COMMERCIAL BREAK)

BLITZER: In trendy Tel Aviv, it may not draw a second look, but here in conservative Jerusalem, it's a matter of considerable controversy. That didn't stop today's gay pride parade.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): They came in the hundreds seeking to send a powerful message: It's OK to be gay in the holy land and the holy city.

UNIDENTIFIED FEMALE: I think it's very important that there is a gay community in Jerusalem.

BLITZER: They came from around the country. Israelis and Palestinians, and from abroad to participate in this gay pride parade in Jerusalem, a city full of very devout Jews, Christians and Muslims who oppose homosexuality.

UNIDENTIFIED MALE: It means a lot because, you know, if you just take it down to the family level, your brother or sister is gay or a lesbian, and you love your brothers and sisters that you grew up with. And then you just take it to a city level or a people level, and then you get the whole community so it's important.

BLITZER: There was heavy security amid fears of violence from anti-gay element, but the event passed without trouble.

(END VIDEOTAPE)

BLITZER: You never know what kind of stories you'll find covering this big story here in Jerusalem.

Let's get to our "Web Question of the Day." Here are the results. The question: "How do you rate President Bush's job performance on the economy?" Look at this: 21 percent of you say excellent; 35 percent say average; 44 percent of you say poor. Remember, this is not a scientific poll.

I'll be back Sunday on "LATE EDITION," noon Eastern; Monday at noon and 5 p.m.

Thanks very much for watching.

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 June 20, 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): Terror warning. Are U.S. interests in Africa once again targeted for attack?

An urgent appeal to save a peace plan.

COLIN POWELL, SECRETARY OF STATE: You must not allow terrorists to win.

BLITZER: How Jerusalem residents are coping.

UNIDENTIFIED MALE: I think the price of going to something like this (UNINTELLIGIBLE) this. But that is just everything. And they don't left nothing. But you don't.

BLITZER: Is Saddam Hussein still alive? Tips, intercepts and possible sightings. The latest from U.S. intelligence.

A comrade lost to a sniper's bullet.

UNIDENTIFIED MALE: Always looking forward to going home and going to see his son.

BLITZER: Arizona ablaze. Fire sweeps through a mountainside community.

Wild about William. And wild about Harry. A big weekend for two British lads.

(END VIDEOTAPE)

BLITZER: Thanks very much for joining us. We're following many developments, including the latest on Secretary of State Colin Powell's talks here in Jerusalem as well as in Jericho with Israeli and Palestinian leaders. Much more on that coming up.

But first, we begin with a developing story. Word of a possible terror plot against the United States interests in Africa. Nearly five years after terrorists destroyed two U.S. embassies there, there's an urgent warning that the new U.S. embassy in Kenya may be targeted. Let's go live to CNN's Barbara Starr. She has details at the Pentagon -- Barbara. BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Wolf, this all began because yesterday the Pentagon's Defense Intelligence Agency issued a terrorism threat warning to U.S. government authorities warning them about the possibility of what they said was an imminent terrorist attack against U.S. interests in Kenya. The Pentagon said that information was specific, was credible, and was tied to the al Qaeda, which of course, has operated in east Africa for years.

And today, indeed, the State Department shut down the U.S. embassy in Nairobi, that embassy rebuilt after the 1998 bombing of the original U.S. embassy in Nairobi. The State Department was not clear today about when it plans to reopen the building.

(BEGIN VIDEO CLIP)

PHILIP REEKER, STATE DEPARTMENT SPOKESMAN: We do expect that the embassy in Nairobi, Kenya, will remain closed Monday and Tuesday, but obviously we'll keep you current on that as the weekend goes by and those days arrive.

(END VIDEO CLIP)

STARR: The Pentagon also said in this classified report that it now considers the threat level in Kenya to be high. And by Pentagon standards, there's some very unsettling words about what that means. The Pentagon says that means that anti-U.S. terrorists are operating actively in the region, and that they may be planning to use large mass-casualty-producing attacks against U.S. facilities. That's what led the Pentagon to raise the warning level in Kenya -- the threat of that.

And of course, again, Kenya being an area of ongoing concern to the United States, even after 1998. Several months ago, of course, the attack against the Israeli-owned hotel in Mombassa, concerns that the al Qaeda was basically casing airports in Kenya, leading to a cutback in commercial air traffic there. But this latest warning is said to be very specific, very credible. New, fresh information about the concerns about a possible terrorist attack in east Africa -- Wolf.

BLITZER: Very ominous development. Thanks very much. Barbara Starr at the Pentagon.

Let's continue at the Pentagon. There's new indications that Saddam Hussein is alive. For that, let's bring in our senior Pentagon correspondent, Jamie McIntyre. He's following this story -- Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Wolf. While the fate of Saddam Hussein remains uncertain, U.S. intelligence analysts are increasingly becoming convinced that he's alive in Iraq, especially based on evidence or intelligence that has collected over the past few weeks.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Excavation of the two sites in Baghdad where the U.S. tried to kill Saddam Hussein with decapitation air strikes has produced no evidence he was at either place. And U.S. officials say scraps of information from local citizens and in interrogations of captured regime members, have convinced many U.S. intelligence analysts it's likely Saddam is alive and hiding in Iraq. But the official U.S. government answer from the White House on down is no one knows.

LT. GEN. JAY GARNER (RET.), FORMER IRAQI ADMINISTRATOR: I talked to Iraqis that told me he was alive and I have talked to Iraqis that told me he's dead. Those that said he's alive generally outnumber those that said he was dead. I don't know whether he is alive or dead.

MCINTYRE: U.S. officials tell CNN General Abid Hamid Mahmud, Saddam Hussein's closest confident has been talking since his capture by U.S. Special Operations forces Monday, but officials won't characterize what he's saying. And Pentagon sources say so far, most senior regime members haven't disclosed much of value. A U.S. Special Operations team, code name "Task Force 20", which took part in the rescue of Private Jessica Lynch, is spearheading the manhunt for the fugitive Iraqi leader, and Pentagon officials continue to express confidence they'll get him.

VICTORIA CLARKE, PENTAGON SPOKESWOMAN: It's important to get final determination, as I call it, of his status or his whereabouts, as we want to have all of the Iraqi leadership. And we'll do it. We're working through the now infamous deck of cards. We're working through that pretty significantly. And we will get there.

(END VIDEOTAPE)

MCINTYRE: U.S. commanders believe that getting Saddam Hussein is key to stopping the attacks that have been inflicting almost daily casualties against U.S. forces. The Pentagon has been reluctant to say the U.S. is fighting guerrillas, but this week on Capitol Hill, Deputy Defense Secretary Paul Wolfowitz said as much, saying it was a guerrilla war, but one that he insisted the U.S. would win -- Wolf.

BLITZER: Jamie McIntyre at the Pentagon. Thanks, Jamie, very much.

Here in the Middle East there are dramatic developments unfolding as the U.S. braces possibly for an explosion -- another round of violence between Israelis and Palestinians. One reason why President Bush dispatched one of his top diplomatic troubleshooters to the region.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Unfortunately for Secretary of State Colin Powell, he found himself in yet another familiar predicament, his latest effort to promote peace a disappointment. Not much headway, at least not in public.

He and his aides have been hoping to get word from Palestinian prime minister, Mahmoud Abbas, that Hamas and other militant Palestinian groups would accept a cease-fire in their terror attacks against Israel. The best Abbas could offer Powell publicly, following their talks in the West Bank town of Jericho, was a promise to keep trying.

MAHMOUD ABBAS, PALESTINIAN PRIME MINISTER (through translator): I am confident -- highly confident that we will reach an agreement with all these organizations.

BLITZER: Earlier, following a separate round of talks with Israeli prime minister, Ariel Sharon, in Jerusalem, the Secretary of State lashed out at Hamas.

POWELL: The enemy of peace has been Hamas, especially over the last two weeks.

BLITZER: To that, Abdel Aziz Rantisi, the Hamas leader, who was nearly assassinated by the Israelis in Gaza earlier this month, lashed right back at Powell.

ABDEL AZIZ RANTISI, HAMAS LEADER: He is totally with the Israeli terror against Palestinian rights. He is an enemy to Palestinians.

BLITZER: While the war of words was playing out, yet another deadly incident. An Israeli motorist driving through the West Bank was shot and killed. Three other passengers wounded, two seriously. Israeli military sources blame Palestinian gunmen. It is precisely these kinds of attacks that strengthen Prime Minister Sharon's refusal to abandon his policy of targeting suspected terrorists for assassination despite urgings from Washington.

ARIEL SHARON, ISRAELI PRIME MINISTER (through translator): We have to make sure there are no independent terror organizations on the ground. The terror organizations must be fought.

BLITZER: Despite the disappointment, top Bush administration officials promised to keep on pushing. To underline President Bush's commitment to advance his road map, hailed by all sides only two weeks ago at the Aqaba Summit, he's dispatching his national security adviser, Condoleezza Rice, to the region next week in an effort to pick up where Powell left off.

(END VIDEOTAPE)

BLITZER: And Israelis and Palestinians say they're deeply looking forward to that visit by Condoleezza Rice.

Much more news coming up, including this. Off the rails. Dramatic developments happening right now. We'll go live to California, where an out of control train barreled into nearby homes.

Plus, blazing Arizona. Fire season goes up in flames.

And...

(BEGIN VIDEO CLIP)

BLITZER: If you just arrived in Jerusalem unaware of the history of this city, you would never know how real the terror threat is. That's because the people who here are not determined to let the terrorists win. They go on with their lives as normally as they can. That's a determination almost all of them seem to possess.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BLITZER: Hundreds of homes are destroyed, and more are threatened by a wildfire in Arizona. We'll go there live. Stay with us.

(COMMERCIAL BREAK)

BLITZER: From the air, it looks like a big box of spilled matches and toothpicks. A runaway freight train -- a big one -- derailed in Commerce, California, crashed into several homes and spilled its load of lumber. Our national correspondent, Frank Buckley, is on the scene for us. He's there. He's joining us now live with details. Frank, how bad is it?

FRANK BUCKLEY, CNN CORRESPONDENT: Wolf, it's a spectacular derailment, but the good news so far, at least, is that so far there are no fatalities reported here and no serious injuries. As we take you upstairs to give you an aerial view of this scene here, as you say, it's a spectacular site. An incredible scene with these cars from a runaway freight train, as we have now been told, took off. They left from Montclaire, several miles from here and then derailed in the City of Commerce.

The train cars went into some homes, in fact, four homes were damaged. Two of them, were told by L.A. County Fire, were completely demolished. Right now, I just saw some dogs and some firefighters from the L.A. County Urban Search and Rescue going through the homes to make sure there are no additional victims trapped. We want to give you a sense, now, of what it's like up-close on the ground, where the train derailed.

Here's what it looked like to us just a few minutes ago. This is what it looks like up close. You can barely recognize these were cars that were attached to a freight train. Twisted metal, lumber that has piled over into one of the yards here that is next to the train track. And just to give you a sense of how devastating this was, this is actually part of the train track itself. And it has come into this yard that is next to the train track area. And then just beyond all of this debris in this yard, you can see that the train went over and went into a residence that was next-door.

And right now, L.A. County Fire Urban Search and Rescue still working the scene to make sure there are no additional victims. As we know it, the L.A. County Fire says that 11 cars from this runaway freight train ended up here. Initially there were 31 cars that were reported by Union Pacific. Exactly what the status of those 20 additional cars, it's not clear. We're not told that there's any imminent danger from those. We just know where they are. We know that 11 cars derailed at this scene, all carrying lumber. No hazardous materials as far as we know, just lumber. It's a spectacular site there. And Montclaire, where this train began its journey, is 27 miles away. don't know how many rail miles it is, but 27 miles in a straight line, from Montclaire to this location. So no engine, no locomotive attached to these cars. They simply started moving from a switching yard, they couldn't be stopped and they ended up derailing here in the City of Commerce -- Wolf.

BLITZER: Frank Buckley, he's just southeast of Los Angeles. Thanks for that report.

Let's move on to some other dramatic pictures. We want to show you this. This is not the way for a dip in a neighborhood pool, by the way. Fortunately the two people who were in this car survived today's accident in Farmingham, Massachusetts. The driver apparently lost control and the car ended up in a backyard swimming pool. No details on just how it happened.

There are details on what's going on in Arizona. Five thousand acres up in flames so far, and some 500 homes already destroyed, half of them in one community alone. Let's get details from our affiliate reporter, Carey Pena. She's joining us from our affiliate KTVK. Carey, tell us about it.

CAREY PENA, KTVK CORRESPONDENT: Well, Wolf, the Aspen fire continues to burn out of control on Mount Lemmon, which is just outside of Tucson. Mount Lemmon is an area that has a cluster of small cabin communities on it. One of those communities, called Summerhaven, was ravaged by fire yesterday. The fire jumped the line about 11:30 and burned up about half of that community.

Fire officials estimate between 200 and 250 structures may be lost. One of those structures we just learned is the Alpine Lodge, which was a well-known landmark for more than 40 years. Many of the residents on Mount Lemmon fuel their homes with propane, so firefighters are dealing with explosions and hazardous materials. One firefighter we talked to yesterday said it looked like a war zone. He said that the street signs had all melted. And you can't even tell where you were when you were up there.

Right now, nearly 700 firefighters are trying to get a handle on the Aspen fire, but by tomorrow, there may be up to 1,000 firefighters here in southern Arizona. The governor of the state, Janet Napolitano, declared a state of emergency and put National Guard troops on standby. We just had a press briefing around 11:00. Some good news to report. Firefighters were able to save about 60 homes yesterday, and they are working fast and furious up on Mount Lemmon at this hour -- Wolf.

So we are covering this and we will have more coming up late on in the day.

BLITZER: All right. Carey Pena, thanks very much. Carey is with our affiliate out in Arizona, KTVK.

Last-minute hail Mary for a rich rapist. The Max Factor heir looks for a way out of prison.

Also, the mayor of Modesto, California on Scott Peterson. Details of their meeting that left a lasting impression about the murder case.

Plus, fund-raising full steam ahead. President Bush looks to 2004, but can he avoid the mistakes of his father? We'll take you on the road. Our John King is standing by for that. Stay with us.

(COMMERCIAL BREAK)

BLITZER: New evidence has emerged in the fatal hit and run accident that led to the arrest and resignation of a Catholic bishop in Arizona. Court documents now show the police detective saw hair and blood spatter on the windshield and roof of Phoenix Bishop Thomas O'Brien's car. O'Brien told police he believed he had struck a cat or dog, or that a rock had hit the vehicle. O'Brien was charged with the accident earlier this week. He resigned his church post on Wednesday.

A spokesman sense the Catholic archdiocese of Boston hopes to put forth a deal next week to settle hundreds of claims of sexual abuse by priest. Lawyers representing alleged sex abuse victims have complained the archdiocese had made little progress towards resolving the matter. The Reverend Christopher Coyne said today the church has been selling real estate holdings to raise some $15 million toward the settlement. Boston's archdiocese has been under fire since evidence emerged it had allowed known pedophile priests to remain in active ministry. Its leader, Cardinal Bernard Law resigned last December.

The fugitive cosmetic's heir and convicted rapist, Andrew Luster, was returned to the United States yesterday. His lawyers now very active trying to help this convicted rapist. Our Charles Feldman has been following this case. He's joining us, now, live -- Charles.

CHARLES FELDMAN, CNN CORRESPONDENT: Wolf, before we get to Andrew Luster, some late news courtesy out of CNN's Mexico City bureau. They tell us that Duane "Dog" Chapman, that's the bounty hunter who caught up with Andrew Luster, went before a judge not too long ago in Mexico. He remains in jail there, because Mexico does not look kindly upon bounty hunters. The judge, we are told, has 72 hours to decide whether or not there is enough evidence to put Mr. Chapman on trial on charges of illegally depriving Andrew Luster of his freedom. The other possibility, of course, is the judge may decide there is not ample evidence and let Mr. Chapman go.

As for Andrew Luster himself, as you pointed out, Wolf, he is back in the U.S., and his lawyers -- the legal maneuvering has already begun.

(BEGIN VIDEOTAPE)

FELDMAN (voice-over): While Andrew Luster sits in a prison some 100 miles from Los Angeles, his lawyer went back to court early Friday to pick up where he left off on an appeal of his client's conviction for drugging and raping three women. And what is the basis for an appeal? Let the lawyer count the ways. ROGER DIAMOND, ANDREW LUSTER'S ATTORNEY: There were at least about 25 legal errors that we believe were committed during the trial, and therefore, we believe that if the appeal were actually heard on its merits, Andrew Luster would have a good chance of getting his conviction reversed.

FELDMAN: In an age where there seems to be a home video of just about everything, no surprise here that there are home video of Mexican police taking Luster into custody. This happened after Luster was tracked down by the bounty hunter named Dog, who was, as we said, also taken into custody. Luster was quickly taken back to the United States by FBI agents, sent off to begin serving his 124-year prison term.

(END VIDEOTAPE)

FELDMAN: And, Wolf, if he lives this long, when he gets out, Luster will be 163 -- Wolf.

BLITZER: Charles Feldman, once again updating us on this case. Thanks very much. Charles, let's move north a bit to Modesto, California.

The mayor there, at least in his hometown, has become front-page news because of a meeting he had with Scott Peterson and the memo he subsequently wrote to police after that meeting. Mayor Carmen Sabatino is joining us now live from Modesto. Mayor, thanks for joining us. Tell us what's going on here. You met with Scott Peterson and then wrote a memo to the police. Why?

CARMEN SABATINO, MAYOR, MODESTO, CALIFORNIA: I met with Scott on January 3, and I wrote the memo the same day. I talked to Police Chief Wasden earlier and he wasn't too excited about my having the meeting, but at that time, Scott Peterson was the husband of Laci Peterson looking for his wife. So I met him at a coffee shop downtown.

BLITZER: Did the police discourage you from meeting him? Did they want you to ask specific questions? What was their rationale -- what was their attitude going into the meeting?

SABATINO: Well, I really don't know. The police chief didn't know when the meeting was going to occur or what have you. I just sensed that he probably felt that I shouldn't get involved in the investigation.

BLITZER: What was Scott like during that meeting?

SABATINO: I thought he was anxious. The purpose of the meeting, according to his invitation, was to thank the city of Modesto for what they were doing, and he was praising the Police Chief Wasden for what he was doing. And, so I took it at that. That's all really that was discussed. I asked him how he was doing, and he said that nights and mornings were difficult for him, but during the day, he kept occupied. And that was the extent of our meeting.

(CROSSTALK)

BLITZER: Did you believe -- did you believe -- Mayor, did you believe him? Did you get the sense this guy was telling you the truth, or were you suspicious during that session?

SABATINO: I guess my reaction was that if it had been me, I would have been in more grief, but that's a subjective decision how people handle grief.

BLITZER: Mayor, you know your community, obviously, quite well. Do you believe Scott Peterson can get a fair trial in Modesto, or should they move it to a different location?

SABATINO: According to the district attorney, we don't have the money to really try this case. I said before that it would take quite a while for us to assemble a jury. You have to remember that the real story in this case, as I've kept telling the media, is how our city has reacted to these tragedies that have occurred here. And we had thousands of people searching for Laci, and now we expect them to be jurors. I'm sure that it's possible, but that's up for a judge to decide.

BLITZER: Mayor, as you well know, there's a corruption scandal in your community, and some are suggesting -- some of your critics are suggesting that could have influenced your behavior in connection with the Laci Peterson/Scott Peterson affair. Does it have any influence at all?

SABATINO: No, I think my behavior throughout this thing has been to promote the city of Modesto, and to repeat what I just said, that we are a good city. The district attorney has begun, nine months ago, an investigation of me, and it's time for the district attorney to put up or shut up. He has spent $200,000 on my case and yet he doesn't have -- according to him, he'd like to shift this over to a grand jury. On December 9, I asked for a grand jury investigation, and now I've got it.

BLITZER: All right. Mayor, I want to thank you for joining us, updating our viewers in what's happening in Modesto. Your community has been rocked with a lot of events, as you well know, over these past several years. Thank you very much.

Let's move on -- and thanks, mayor, we are going to have to leave it right there, unfortunately.

President Bush hits the campaign trail running with a domestic focus, and lots -- lots of fund-raising that he hopes will help him say on top with the voters.

Plus, busted again. Jose Conseco's run-in with the law over steroids.

And reality TV in the courtroom. "Crime & Punishment" takes you inside. I'll talk with its creator.

Stay with us. (COMMERCIAL BREAK)

ANNOUNCER: This is a special edition of WOLF BLITZER REPORTS, live from the Middle East. Reporting from Jerusalem, here's Wolf Blitzer.

BLITZER: Welcome back to CNN. President Bush is on the campaign. He's talking about the economy. Our John King is standing by to fill us in on the strategy, the fund-raising strategy for reelection.

First, though, the latest headlines.

(NEWSBREAK)

BLITZER: President Bush now is in Georgia getting ready for his next leg of a fund-raising ordeal. It's a huge effort to try to make sure he has enough money in his campaign coffers to get re-elected.

Our John King is standing by. He's in Greensboro, Georgia, with a little analysis of what's going on. The president seems to be very active on this front. Any setbacks at all on the political front, John?

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Not when it comes to fund-raising, Wolf. The president focusing on the economy of politics, if you will, tonight.

He landed just a short time ago at Greensboro Airport, Green County Airport here in Georgia. He'll be here soon at this golf resort in Greensboro, where an old friend, Mercer Reynolds, who was once an ambassador in the Bush administration, a longtime business partner of President Bush, he owns this resort, and he is the host tonight for a fundraiser that will bring in more than $2 million for the Bush campaign.

This is the second fundraiser this week for the president. The vice-president and first lady also are out as well. The president will shatter all records in this campaign, his aides say, including raising some $20 million just by the end of this month, June, which is the first official reporting period.

It comes in a week in which the president is not only kicking off his fundraising effort, but also turning more and more attention to the issue that all have his aides believe will be the defining issue in the campaign to come, and that is, of course, the strength of the U.S. economy.

Mr. Bush staged three events this week on the economy. The first event was touring a pasta factory up in New Jersey earlier in the week, and Mr. Bush went to a Northern Virginia community college to focus on job training efforts, then out to a high-tech plant in Minnesota just yesterday, the president trying to make the case that the economy is beginning to come back. The stock market has had a pretty good stretch as of late, and recent data from the government suggests the economy is beginning to grow again, and the president wants to make the case to voters that his big tax cuts are one of the reasons the economy is beginning to come back.

The Democrats, of course, have a very different view. They are harshly critical of the Bush tax cut. But in the early days of fund- raising, the president also spending some time, you might say in the early days of campaigning, trying to frame the economic debate, which of course will take center stage, much more so, Wolf, when we get into the presidential campaign in full swing some time next year.

Again, though, the focus tonight here is filling up the campaign coffers, more than $2 million for the Bush-Cheney re-election campaign to be raised here tonight -- Wolf.

BLITZER: All right. John King, you're on reporting this story for us from Georgia. Thanks, John, very much.

This note. This has been an unusually busy month for Bush team members, as they travel across the country in a bid to raise $20 million for the president's reelection campaign. In addition to the president, first lady Laura Bush and Vice-President Cheney also will be on the road. The ultimate goal: up to $170 million for next year's reelection campaign effort.

Here's your chance to weigh in on this story. "Our Web Question of the Day" is this: "How do you rate President Bush's job performance on the economy? Excellent? Average? Poor? " We'll have the results later in this broadcast. You can vote at cnn.com/wolf.

While you're there, we'd of course love to hear directly from you. Send me your comments. I'll try to read some of them on the air each day at the end of this program. That's also, of course, where you can read my daily online column, cnn.com/wolf.

The other day we showed you a dramatic report from Ramallah, how Palestinians are coping living under Israeli military occupation. Today we take a look at how the Israelis are living with the ever- present threat of terrorism.

(BEGIN VIDEOTAPE)

BLITZER: (voice-over): This is what the Cafe Moment looked like just a little more than a year ago. It was March 9, 2002, when a Palestinian suicide bomber walked into the packed Jerusalem night spot and detonated the explosive belt he was wearing, killing 11 people and injuring 54 others. The crowded cafe, especially popular with young Israelis, was destroyed.

I was here in June 2002, only three months after the blast. Reconstruction then was already well on the way.

And this is the Cafe Moment today. It's been rebuilt and is clearly back in business, though by no means the same.

YORAM COHEN, MOMENT CAFE OWNER: To rebuild doesn't mean just to rebuild a foundation. It's to rebuild foundations of humans.

BLITZER: Yoram Cohen is the owner. He was inside during the bombing.

COHEN: The second of the blast, I flew over the bar from the impact of the bomb, and somehow I got up.

BLITZER: He says he's been getting up every day since.

(on camera): If you just arrived in Jerusalem unaware of the history of this city, you'd never know how real the threat is. That's because the people who live here are determined not to let the terrorists win. They go on with their lives as normally as they can. That's a determination almost all of them seem to possess.

Rafi Fridj was at the Cafe Moment the night of the bombing, but had left only five minutes earlier. He makes a point of still coming back.

RAFI FRIDJ, CAFE PATRON: You have to continue with your life. You don't -- you cannot live the terror -- let the terror win and let the terror change your normal life.

BLITZER: Indeed, strolling or driving around Jerusalem and other Israeli cities underscores that determination to live ordinary lives during extraordinary times.

Despite the numerous bus bombings, most recently on June 11, people still climb aboard, in part, they say, because they can't afford more expensive forms of transportation.

And they still go to the Cafe Moment.

DAVID YAKIN, CAFE PATRON: In the first few months of the bombing, it really was a little bit scary, I think, thoughts of going to something like this, a place like this. But you get used to everything. And you don't let nothing get you down.

BLITZER: And they still yearn for the ordinary, even as they keep a weary eye for anything out of the ordinary.

(END VIDEOTAPE)

BLITZER: I think it's fair to say these are pretty remarkable people living under these circumstances.

We have more news coming up, including some lighter news, including this: one British lad has a big weekend ahead. The witching hour is fast approaching for Harry Potter fans, especially in London. We'll go live to London for a magical peek.

Plus, we'll get an inside look at a reality show that has high stakes with real outcomes.

But first, let's fake a look at some other news making headlines "Around the World."

(BEGIN VIDEOTAPE) BLITZER (vice-over): Deadly blast in Chechnya. A truck packed explosives blew up outside the headquarters of the special police in Grozny, killing the two suicide attackers driving the vehicle. Dozens of poeple were wounded.

Kidnapping in Congo. Two U.N. military observers were abducted by unknown assailants in the eastern part of the country. Latest reports say the two men are still alive.

Pledge reneged. Liberian President Charles Taylor says he will serve to the end of his term in January next year and might run again. Earlier this month, Taylor said he would step aside early in a bid to end Liberia's three-year civil war.

Summit violence. Greek riot police fired tear gas to drive back anticapitalist protesters at a beachside resort hositng a meeting of European Union leaders. Most of the some 10, 000 protesters marched peacefully.

Extreme protest. Two Iranian men set themselves on fire near the French embassy in London. The flames were qucikly put out. The men were protesting the French arrest of Iranian opposition leaders Tuesday.

Big bang. Russian scientists are at the site where at least one large meteorite slammed into Siberia last year. One of the scientists now says he thinks at least two hit the area, burning and uprooting trees and underbrush.

Only the British. They call it extreme ironing, and a British woman is said to be the first to extreme iron in the Grand Canyon. Her moniker, what else? What else, but crease.

And that's our look "Around the World."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: A magical hour is approaching for Harry Potter, including a magical hour for our own Richard Quest. He's standing by live in London. We'll go there next.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Earlier we asked: "Besides non- copyrighted books like the Koran and the Bible, what's the best- selling book ever? The answer, "Guinness World Records." More than 94 million copies in 37 languages have been sold around the world.

(END VIDEOTAPE)

BLITZER: Welcome back. We're bracing for two major events in London: the 21st birthday part for Prince William; also the release of the new Harry Potter books.

No one -- no one more qualified to talk about both of these subjects than our own wizard, Richard Quest. He's joining us live from London.

How excited, Richard are people in London right now?

RICHARD QUEST, CNN CORRESPONDENT: Good evening to you, Wolf.

Yes, well, as you can imagine, the action -- the excitement -- we're now just a couple of hours away from the launch of the Harry Potter book. You said that perhaps nobody is more qualified than me as the wizard, but I have behind me, of course, the real wizard, Professor Dumbledore, and the children who are now getting ready for their first glimpse and their first look at this particular book, "Harry Potter and the Order of the Phoenix, " which will be released in Britain.

It's already been released, of course, now in Australia through India, and large parts of the rest of the world where, of course, it's already gone through midnight.

But quite interestingly, the book in Britain will go on sale at midnight at a discount, Wolf, because various Web sites lime amazon.com have been selling it at a discount, so leading stores like Waterstone's here will also have to sell it at a discount.

This particular party, they're going to open up a big trunk, the books will be distributed, and there will be all manner of fun and frivolity.

Now the other event, of course -- and I don't -- we're not talking about Harry on this occasion -- we're talking about Harry Potter. But now let's talk about Prince William, because two of Britain's top icons are topping the news this weekend. The other one, of course, the 21st birthday celebration of his royal highness, Prince William.

Now he doesn't actually use his royal highness because he still prefers to be called William Windsor. But from our point of view, of course, he's 21 on Saturday. We've seen some new pictures of the heir to the throne. They were released by Buckingham Palace. They show not only William, but also Prince Charles and of course Harry -- not Harry Potter, Prince Harry.

It's getting confusing this, Wolf. You've got to keep up with me on this one, play with me on this one a bit on this. This is -- as they were playing a polo match with their father.

So two icons at different extremes. Prince William, described as one of the most eligible bachelors in the world, even though he's just 21, and Harry Potter, who's considerably younger and probably considerably wealthier. BLITZER: Richard Quest, thanks very much. Prince William, Harry Potter -- of course there's also Prince Harry, but we'll leave that for another day. Richard Quest covering those stories for us as only he can do. Thank you, Richard.

When we come back, it's real-life drama, very real-life drama. A TV show with real outcomes returns for its second season. We'll get an inside look.

Plus, in the midst of a crisis in the Middle East, people marched here in Jerusalem for a completely -- and I mean completely different cause. We'll have that story. You'll want to see it. Stay with us.

(COMMERCIAL BREAK)

BLITZER: It's a hit -- it's a hit, a huge hit across the United States, "Crime & Punishment" from NBC. It's beginning its second season -- about to begin its second season. The show chronicles real- life cases prosecuted by the San Diego District Attorney's office.

Here's a snippet from the show that will air this Sunday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The evidence will show that Emil Robashaw (ph) was under the influence of alcohol. The evidence will show that Emil Robashaw was driving the truck.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is a case really about who was driving. Ladies and gentlemen, the prosecution knows that their witnesses have lied.

(END VIDEO CLIP)

UNIDENTIFIED FEMALE: I have better. I just -- it's hard for me to part with my pictures.

UNIDENTIFIED MALE: This is an excellent picture. Is this, like, some school -- senior year? Junior year?

UNIDENTIFIED FEMALE: He didn't make it senior year.

(END VIDEO CLIP)

BLITZER: Joining us now to discuss why this series has become such a huge hit is the executive producer, Bill Guttentag. He's joining us from Los Angeles.

Bill, thanks very much. Why has your show so resonated with the American public? BILL GUTTENTAG, EXECUTIVE PRODUCER, "CRIME & PUNISHMENT": Well, I think that we endeavor to be the real-life "Law And Order." As I'm sure you know that we're part of the "Law and Order" family of shows, with Dick Wolf as sort of the captain of the ship, and I think that the American public, you know, cares about what we like to say is real reality.

I mean, if you watch reality TV these days, there's not a lot of reality in it. And I think we're presenting real cases, where the stakes are exceedingly high, and the drama is exceedingly high.

BLITZER: How do you go out about picking which cases to put on the air?

GUTTENTAG: Well, I think that we try to pick our cases the way "Law and Order" does, a case that has great drama, great tension.

And the thing about the cases that you'll see, Wolf, is that when someone is accused of a crime, they'll either walk out of the courtroom a free person or they'll go out the back of the courtroom in chains, depending on what decision the jury renders. And as powerful a show as "Law and Order" the other similar dramas are on TV, they use actors. And I love "Law and Order, " but in this case, everything is real. Every frame is real, and the stakes are exceedingly high, and I think the audience appreciates the fact that we're aiming quite high in quality.

BLITZER: When I spoke to Dick Wolf about a month or so ago, he made the point that they look at the headlines, they watch and see the real-life cases, which are on television, and then they use them as a potentially basis for "Law and Order." You don't have to do that. You just go ahead and find those cases in San Diego that are really powerful. Is that fair?

GUTTENTAG: Right. That's absolutely right.

I mean, if people go through states of extreme, you know, crisis. I mean, a woman will be raped, and she'll never have that day back, but with the district attorneys, you know, she can seek her day in court. And she depends on the district attorney's office for justice, and as an audience, we sit there hoping justice is achieved.

And so I think, as I said before, the stakes are exceedingly high, and, you know, we hope that an audience will get inside the head of the victims and inside the head of the prosecutors when the jury comes back before they read their decision, you know, they'll truly care what happens.

BLITZER: Bill Guttentag is the executive producer of "Crime & Punishment". He's got a new episode coming out Sunday night. We'll be watching, of course.

Bill, thanks for joining us here on our program.

GUTTENTAG: Thank you so much, Wolf.

BLITZER: Thank you. Thank you very much.

On June 9, 2003, CNN aired a report about the effectiveness of the taser electronic gun designed to incapacitate someone in the midst of a crime or attack. CNN's report included a demonstration of an M26 taser being fired at seven volunteers. In the demonstration, the M26 failed to incapacitate any of the seven. According to the manufacturer of the M26, Taser International, the specific gun used in the demonstration had a malfunctioning capacitator and was defective. CNN should have included Taser's response in all of its reports, and did not.

Taser says its own stud you of more than 1,600 field uses by law enforcement shows a 94 percent success rate with the M26.

Let's get back to the latest developments here in the Middle East. More controversy, if you can believe it -- more controversy here in Jerusalem. But you're not going to believe what that controversy is. Eyebrows will be raised.

Stay with us for that.

And our hot "Web Question of the Day" is this: "how do you rate President Bush's job performance on the economy?" We'll have the results later in this broadcast. Vote at cnn.com/wolf.

(COMMERCIAL BREAK)

BLITZER: In trendy Tel Aviv, it may not draw a second look, but here in conservative Jerusalem, it's a matter of considerable controversy. That didn't stop today's gay pride parade.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): They came in the hundreds seeking to send a powerful message: It's OK to be gay in the holy land and the holy city.

UNIDENTIFIED FEMALE: I think it's very important that there is a gay community in Jerusalem.

BLITZER: They came from around the country. Israelis and Palestinians, and from abroad to participate in this gay pride parade in Jerusalem, a city full of very devout Jews, Christians and Muslims who oppose homosexuality.

UNIDENTIFIED MALE: It means a lot because, you know, if you just take it down to the family level, your brother or sister is gay or a lesbian, and you love your brothers and sisters that you grew up with. And then you just take it to a city level or a people level, and then you get the whole community so it's important.

BLITZER: There was heavy security amid fears of violence from anti-gay element, but the event passed without trouble.

(END VIDEOTAPE)

BLITZER: You never know what kind of stories you'll find covering this big story here in Jerusalem.

Let's get to our "Web Question of the Day." Here are the results. The question: "How do you rate President Bush's job performance on the economy?" Look at this: 21 percent of you say excellent; 35 percent say average; 44 percent of you say poor. Remember, this is not a scientific poll.

I'll be back Sunday on "LATE EDITION," noon Eastern; Monday at noon and 5 p.m.

Thanks very much for watching.

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