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CNN Wolf Blitzer Reports

Earthquake hits Japanese island

Aired September 25, 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.


ANNOUNCER: This is CNN Breaking News.
WOLF BLITZER, CNN ANCHOR: I'm Wolf Blitzer in Washington. Only moments ago, a huge earthquake hitting northern Japan, a magnitude preliminary read 7.8 rocking the northern Japan island of Hokkaido, authorities fearful there is a possibility of a Tsunami in this northern Japanese island.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Putting the knot back in do not call.

UNIDENTIFIED MALE: You can see how fast this Congress is prepared to move when 50 million Americans are angry.

BLITZER: But will your phone really stop ringing?

What did he find? The chief U.S. weapons hunter is back from Iraq.

Ambush and assassination, terrorists have a field day in Baghdad.

UNIDENTIFIED MALE: What they've actually had is the enemy coming to them.

BLITZER: Escape in the jungle, a teenage tourist makes a break from kidnappers.

UNIDENTIFIED MALE: I jumped off a cliff very quickly. I was lucky not to have broken my arms and legs.

BLITZER: Cookies and controversy, burned up over a college bake sale.

UNIDENTIFIED MALE: We weren't selling cookies to different races for different prices.

(END VIDEOTAPE)

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.

BLITZER: It's Thursday, September 25, 2003. Hello from Washington, I'm Wolf Blitzer reporting.

We're following with a breaking story. We're beginning right now in northern Japan. As I just reported a huge earthquake erupting only within the last few moments we're told.

CNN's Rebecca MacKinnon is joining us now live on the phone from Tokyo. Rebecca we're hearing the preliminary magnitude 7.8. That's a pretty big, powerful earthquake.

REBECCA MACKINNON, CNN TOKYO BUREAU CHIEF (via telephone): Yes, that is a big, powerful earthquake, Wolf. One thing to note it was off the coast of Japan's northern island of Hokkaido.

Japan is composed of a string of islands. Hokkaido is the northernmost island. This quake happened off the eastern coast of that island of Hokkaido, roughly 60 kilometers underground.

And, as you say, the Richter scale magnitude 7.8, that's a large earthquake. That is larger than the scale of the earthquake that hit southern Japan in 1995. At this point, however, there are no reports of human casualties.

There are reports that waves of the Tsunami, which is a large wave of up to three feet or so, are expected to hit the coast and that all residents living along that eastern coast of Hokkaido must evacuate to higher ground immediately.

There's also an oil refinery along the coast that has been damaged due to the quake, large fire, firefighters trying to put that out; however, at this point no further reports of either structural damage or casualties at this point - Wolf.

BLITZER: We're showing video, Rebecca, of a room where the earthquake was being felt. Clearly you can see what's going on. Our viewers are watching it right now as filing cabinets begin to fall, television screens go down.

The northern island of Hokkaido in Japan, is this a heavily populated area Rebecca?

MACKINNON: Well, Hokkaido is the least populated part of Japan. It is not as well populated as the main island of Honshu (ph) which is where Tokyo and Japan's largest cities are located; however, you do have cities of tens of thousands of people along that coastal area that we're talking about.

There are several million people living on Hokkaido itself and certainly along that coast there's one fishing city that I've actually been to where you have a lot of facilities, both for fishing and residences very close to the sea.

It's a seaside town so I think we can certainly expect some damage; however, at this point no exact reports of casualties. The quake, in fact, happening about an hour ago, so we're still waiting for reports of casualties to come in but no deaths certainly reported at this point in time probably credited in part to the fact that the quake itself, the epicenter was off under the ocean.

BLITZER: Rebecca, I know you're working on this story but a lot of Japan is powered by nuclear energy. Do you know if there is a nuclear reactor in Hokkaido in that area and, if there is, are these nuclear reactors in Japan ready to withstand earthquakes?

MACKINNON: Well, that is a good question, Wolf, and there are nuclear facilities in Hokkaido. I do not have information at this point in time about exactly how close to that coastal area hit by earthquakes the Hokkaido facilities happen to be; however, this is a big issue around Japan.

Japan is heavily reliant on nuclear power for its energy because it has no oil of its own and there is always great controversy in Japan about whether this is a wise idea given how earthquake prone this country is.

However, people who build the nuclear power plants will tell you that they go to all precautions structurally to avoid, to make sure, that damage will be minimized during any quakes. However, at this point in time, I don't have any further information about any possible damage that may have happened in Hokkaido - Wolf.

BLITZER: Rebecca, there's, Japan as you point out a series of islands including this island in the northern part of the country Hokkaido. There's enormous fear of these Tsunamis.

To our viewers in North America who may not be familiar with the dangers that could come from a Tsunami, usually it takes a while for them to develop after an earthquake, some kind of seismic activity. What are we bracing for in terms of the Tsunamis?

MACKINNON: Well, the national media is warning people of waves of about two meters high, which I guess just roughly is between three and six feet hitting the coast and, you know, what this means is definitely the water goes up substantially and, as you say, it does take a while to hit.

However, if you're living right on the coast and the water level rises that much that can certainly cause a great deal of damage and so people are being told that this is an emergency and they must leave the coastline immediately to ensure their safety - Wolf.

BLITZER: All right, Rebecca, we're going to let you go and get some more information for us.

Let me recap for our viewers who are just tuning in, an earthquake in the northern part of Japan only within the past hour registering a preliminary magnitude 7.8. The earthquake about 60 miles, kilometers actually, about 36 miles under the sea bed off the coast of this northern Japanese island, as you can see some serious damage already.

We have no reports of casualties but this is very, very early in the game. We'll continue to follow this story, get back to Rebecca and get some more information of course as it develops. But let's move on to other important stories that we're following right now, a warning, a very serious warning over nuclear weapons. This year the United Nations inspectors found traces of enriched uranium at a facility in Iran.

Now, just a month before Iran must meet a U.N. deadline to prove it has no secret weapons program there is fresh cause for concern.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): With the International Atomic Energy Agency finding traces of enriched uranium at a second site in Iran, President Bush wasted no time in issuing a stern warning.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It is very important for the world to come together to make it very clear to Iran that there will be universal condemnation if they continue with a nuclear weapons program.

BLITZER: The president says he's pleased with world reaction so far and says he'll be talking about Iran Friday with Russian President Vladimir Putin at Camp David.

It's a thorny issue because Russia continues its nuclear cooperation with Iran, helping construct a nuclear reactor. Both countries insist it's for peaceful purposes. Others are doubtful because Iran has so much oil why does it need nuclear energy?

White House officials say Iran has one last chance to comply with IAEA inspection demands.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECY.: I have an October 31 deadline and at that point if they fail to meet what the IAEA laid out, then we believe it should be taken to the Security Council.

BLITZER: A new U.N. resolution could set the stage for diplomatic and economic sanctions against Iran and perhaps even more severe action. Iran continues to steadfastly deny it's working on a bomb.

KAMAL KHARRAZI, IRANIAN FOREIGN MINISTER: It is true that we have installation to enrich uranium but as long as it is under the safeguard of IAEA and under the severe control regime of IAEA provided we sign additional protocol, there should be no concern. But why there is concern? But in spite of that Americans say that you have to accept additional protocol and the same time you should stop your enrichment facility and that's not acceptable to us.

(END VIDEOTAPE)

BLITZER: And this additional note, Iranian officials say there may be a simple explanation for the traces of enriched uranium that may have been found on the sophisticated equipment. They say that equipment was imported from abroad. We'll continue to follow this story. Meanwhile, David Kay, the man in charge of the CIA's hunt for Iraqi weapons of mass destruction is due to report to Congress soon and by all accounts he won't have much to report.

U.S. officials say Kay has reached "no firm conclusions about Iraqi weapons of mass destruction." The White House says the search team is continuing to do it's job adding, and I'm quoting now, "the truth will come out."

While President Bush and U.S. diplomats have been lobbying other nations to send peacekeeping forces to Iraq, the Pentagon has been making backup plans which call for a possible call-up of additional reserves.

Let's go live to our Senior Pentagon Correspondent Jamie McIntyre - Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Wolf, a full court press on Capitol Hill today, Ambassador Paul Bremer, Deputy Defense Secretary Paul Wolfowitz, U.S. commander General John Abizaid, even the outgoing Army Vice Chief John Keane all there to make the case for the $87 billion the Bush administration says it needs for Iraq.

During the testimony, the Pentagon acknowledged that the failure so far to get enough foreign troops to join the mission in Iraq may result in a call-up of between 10,000 and 15,000 additional U.S. Reserves next year and, as you might expect, that didn't go over well with Congress.

(BEGIN VIDEO CLIP)

REP. NEIL ABERCROMBIE (D), ARMED SERVICES CMTE.: The draft has returned to this country except it's by default and a whole lot of people that are waving the flag out there and talking about our responsibilities in the war on terror are getting to watch it on television because we're drafting by default through Guard and Reserve.

(END VIDEO CLIP)

MCINTYRE: The problem is the U.S. hoped a multinational division would replace the battle weary 101st Airborne. If that doesn't happen active duty troops, either Army or Marines, will have to be called up along with Reserves for one year tours of duty.

(BEGIN VIDEO CLIP)

GEN. JOHN KEANE, U.S. ARMY: A year is a long time in Iraq to be sure but it is worth it. It is worth it given what we're up against and what our opponents are after. They want to destroy the moral and political will of the American people.

(END VIDEO CLIP)

MCINTYRE: The Pentagon is trying to boost moral by giving troops 15 days of R&R where they can come home and be with their families but the Reserve call-up is not a done deal at this point. A top commander says he's still hopeful that either Turkey or maybe Pakistan will come through with a division in time to replace the 101st - Wolf.

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

And questions about ties to Halliburton continue to haunt the Vice President Dick Cheney. Now, a congressional report says he still has a financial interest in the giant energy, engineering, and construction company he used to run. Halliburton has more than $2 billion worth of contracts to help rebuild Iraq.

The report says Cheney's deferred pay and more than 400,000 stock options are potential, potential conflicts of interest. Democratic Senator Frank Lautenberg of New Jersey commissioned the report by the Congressional Research Service.

(BEGIN VIDEO CLIP)

SEN. FRANK LAUTENBERG (D), NEW JERSEY: As the CRS report shows, the ethic standards for financial disclosure is clear. Vice President Cheney has a financial interest in Halliburton.

(END VIDEO CLIP)

BLITZER: CNN's White House Correspondent Dana Bash is joining us now live from the White House with some reaction. What are they saying over there Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Senior Cheney aides said that Lautenberg, Senator Lautenberg's comments are irresponsible and baseless. Here's what the vice president's office says in terms of explaining how all this is connected.

That, yes, the vice president does still get money from Halliburton but it is his salary from 1999. It is a package that he decided a long time ago to defer before they say he knew that he was going to be on the ticket with George W. Bush. Perhaps he decided to do it for tax purposes.

But this is about $370,000 he's gotten over the last two years. He will get it until 2005 but what the vice president's office says is that he took out an insurance policy a couple of years ago in order to make sure that there is no appearance of conflict of interest.

Therefore, whether or not Halliburton does well or does poorly, according to the vice president's office, Mr. Cheney still gets the money. He still gets his salary that he deferred from 1999.

Therefore, the senior Cheney aide says that any argument that he does have a financial interest is just not valid because he doesn't benefit if Halliburton does well. That's what the vice president's office says.

BLITZER: All right, Dana Bash with the latest from the White House on that sensitive subject. Dana thanks very much.

(BREAKING NEWS)

CNN's Kelli Arena has got new developments on the Zacarias Moussaoui case. She's joining us now live. What's going on Kelli?

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Well, Wolf, the headline is that the government has asked a district court judge to drop all of the charges against Zacarias Moussaoui.

Now before you fall off your seat, what this means is that the government is trying to get the case against Moussaoui to the Appeals Court as quickly as it can.

If you remember, Wolf, the district judge had ruled that Moussaoui could have access to three al Qaeda detainees who Moussaoui says could clear him of any involvement in the September 11 attacks.

The government has refused to comply with the judge's order saying that allowing Moussaoui access to those detainees would jeopardize national security. So the judge has to sanction the government, has to punish the government for refusing to follow her orders.

The government is saying here's an idea for your punishment. Dismiss the charges. That will provide a clear and very quick route to the Appeals Court. We'd like to ask the Appeals Court to overrule your ruling saying that we have to present these detainees and move this case along.

So, that is the latest in this very complicated ongoing saga - Wolf.

BLITZER: Kelli, very briefly, what are the prospects of just forgetting about the whole judicial process and simply going back to a military tribunal, actually throwing it into a military tribunal where they don't have to worry about these niceties of regular jurisprudence?

ARENA: Well, that's been sort of the undercurrent all along, Wolf, and it has always been understood, at least privately that if all of the appeals options were exhausted by the government that they would transfer him over to military custody.

But the government really has been very resistant to that. They want to try as hard as they can to keep this in the judicial system to prove that they can handle cases like this.

BLITZER: CNN's Kelli Arena, breaking news here on CNN. We'll be checking back with you. Thanks very much, Kelli, for that important news.

We're going to take a quick break but we're getting new information about our top story, this earthquake in northern Japan. The U.S. Geological Survey now only within the past few minutes saying this earthquake had an 8.0 magnitude. That's significantly bigger than the preliminary magnitude Japanese authorities were reporting.

When we come back, more on this breaking news story, stay with us.

(COMMERCIAL BREAK)

(BREAKING NEWS)

BLITZER: There's a breaking story we've been following since the top of the hour, an earthquake in Japan.

You're looking at these pictures. Only within the past hour or so we're now told by the U.S. Geological Survey it registered 8.0, 8.0. That's a very, very large, significant earthquake in the northern Japanese island of Hokkaido.

We're told it's a fairly well populated island, a lot of industrial parks, also a nuclear reactor on Hokkaido. We're also told that the actual center of the earthquake was about 30 to 40 miles offshore in the middle of the sea out there not that far away but clearly felt on Hokkaido.

We're going to go back there, get some more information, 8.0, a huge earthquake in the northern part of Japan. We'll check back and get some more information on this breaking story as it comes in.

But let's move on to some other news that we're following right now here in Washington. The U.S. Congress is working with what is fairly, accurately described as lightning speed to ensure that the National "Do Not Call" list for telemarketers, struck down by a federal court only yesterday, will survive.

A congressional historian tells us only during times of national crisis has Congress ever acted this quickly and possibly never before in response to a court order but will all this effort really keep telemarketers from getting to you?

CNN's Greg Clarkin joins us from New York.

GREG CLARKIN, CNN CORRESPONDENT: Well, Wolf, right now the Senate is indeed debating a bill that would make it very clear that the FTC, the Federal Trade Commission, does indeed have authority over the National "Do Not Call" list. Earlier today the House passed a similar bill all in an effort to protect the list.

(BEGIN VIDEOTAPE)

CLARKIN (voice-over): They moved with lightning quick speed, both the House and the Senate taking up bills to protect the National "Do Not Call" list just a day after a federal judge ruled against it. The judge said the Federal Trade Commission didn't have the power to create the list. Congress left no question that it did.

REP. BILLY TAUZIN (R), LOUISIANA: We should probably call the bill "This Time we Really Mean it Act" to cure any myopia in the Judicial Branch. The bill leaves no doubt as to the intent of Congress.

CLARKIN: The intent is to get a bill to the White House and have it signed in time to make sure the National "Do Not Call" list takes effect next week as planned.

MCCLELLAN: People should have the right to choose if they don't want to receive those solicitations at home when they're trying to help their children with their homework or they're trying to have dinner with their family.

CLARKIN: Telemarketers say their right to call is protected by the right to free speech. So far, more than 50 million people have signed on expecting to get rid of some of those calls but veterans of the fight against telemarketers say don't expect too much.

ROBERT BULMASH, FOUNDER, CEO, "PRIVATE CITIZEN": I feel that the public is more encouraged than they necessarily should be. Unfortunately, there's quite a few loopholes in the "Do Not Call" list. Personally, I consider telemarketing calls to include sales, survey, fund raising, and political calls.

CLARKIN: But those calls are exempt and even with your name on the list, a company you purchase something from can call you for up to 18 months and simply calling a company to ask about a service or a good can give that company the right to call you for three months.

Balmash has battled telemarketers for more than a decade. He said the list makes a dent in the problem but even more is needed.

BALMASH: It's a fundamental right to be able to be left alone someplace by those we seek to avoid and if that place doesn't exist in our own homes where we raise our families, where we rest after a hard day's work, where we care for our elderly, if that place is not in our homes we have no right to be left alone anywhere in this country.

(END VIDEOTAPE)

CLARKIN: But, for now, the "Do Not Call" list really is as good as it gets and the FTC is encouraging people to continue to sign up over the web or over the telephone.

And, Wolf, we also want to bring you up to date on some breaking news on another story that consumers and investors especially have followed very closely. That is the turmoil at the New York Stock Exchange.

Just moments ago we're getting word that Carl McCall, he was the head of the Compensation Committee at the NYSE, this is the committee that granted that enormous pay package to Dick Grasso, Grasso resigned under fire last week but Carl McCall is stepping down as well.

He has submitted his letter of resignation to John Reed, the interim leader of the NYSE saying that he had tried to provide leadership but he believes that at this point it's better if the NYSE moves forward unencumbered by the past and so he is resigning effective September 29th. Again, this is H. Carl McCall, the head of the Compensation Committee at the NYSE stepping down September 29 -- Wolf.

BLITZER: All right, Greg Clarkin with all that information for us, Greg thanks very much for that.

And there are new developments surrounding last month's mysterious death by bombing of a pizza delivery man in Erie, Pennsylvania. Brian Wells was killed when explosives attached to a metal collar around his neck went off. He had just robbed a bank and told police he had been forced to do it.

Today, federal agents went public with new clues and a reward. Look at this. They released two photos of a cane-shaped firearm found in Wells' car. They also announced a $50,000 reward for information in the case, which of course still remains unsolved.

Much more coming up on our top story, our breaking news involving an earthquake, yes an earthquake in Japan, the northern Japanese island of Hokkaido just off the coast of Hokkaido, registered according to the U.S. Geological Survey 8.0 on an earthquake with a registry of 8.0. That's a very large earthquake.

We're going to go back to Japan, get some more information, get some assessment what's going on, fears right now of Tsunamis, huge waves that could endanger people in the northern part of Japan. We'll get to that shortly.

Also, Colombia, the kidnap capital of the world, one daring teen escapes his captors but several tourists are still being held somewhere in the jungle. We'll take you there live to Bogota.

An elementary outrage one teacher's aide in the hot seat for unusual disciplinary methods; plus this...

(BEGIN VIDEO CLIP)

LT. GOV. CRUZ BUSTAMANTE (D), GUBERNATORIAL CANDIDATE: There's no rocket science to this.

(END VIDEO CLIP)

BLITZER: The hits keep coming in California but is anyone emerging as a leader? I'll talk with the state's Republican and Democratic party chairmen. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Colombia's army is intensifying the search for a group of international tourists believed kidnapped by leftist rebels. They included a British teenager who managed an escape right out of the movies.

Karl Penhaul is joining us now live from Bogata with more -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi, Wolf. Yes, this group had been headed to ancient Indian ruins known as the Lost City high in Colombia's Sierra Nevada Mountains. It was supposed to have been an Indiana Jones style adventure that went terribly wrong.

(BEGIN VIDEOTAPE)

PENHAUL (voice-over): Battered, bruised, lucky to be alive. Matthew Scott undergoes medical checks at military base. In broken Spanish, he recounts his daring escape.

"At 2:00 in the afternoon it was raining in the mountains," he says. "The visibility wasn't good at all, so I ran down the mountain very quickly."

Scott says he escaped just days after gunmen kidnapped him, another Briton, four Israelis, a Spaniard and a German. He says he's no idea who his captors really were.

"Some say they're paramilitaries," he says. "Others say they're guerrillas. They all say different things."

Colombia is kidnap capital of the world -- 3,000 abductions a year. Most blamed on rebel factions, locked (ph) in a long-running war to overthrow the state.

Guerrillas are holding three American contractors in southern Colombia. On the run from gun-toting kidnappers, Scott says he had only stream water to drink and nothing to eat for 12 days. The peaks soar to more than 19,000 feet. Lucky, he says, not to break his arms or legs as he tumbled into deep gorges. Scott says he finally found care in the mountain village of these Koge (ph) Indians. They nursed him on beans and oranges and called in the army.

Scott is now in the capital of Bogota en route to London. He says when he last saw them, his fellow hostages were demoralized and depressed, forced to march in torrential rains.

"I don't know anything about my companions or if they're in good health," he says. "I only know that the man from Israel has asthma and the others are very demoralized, depressed. They have to walk a lot every day. The rain is heavy."

(BEGIN VIDEOTAPE)

PENHAUL: Scott has spent most of the day in the British embassy. Residences talking to officials, being debriefed and resting. He's also, we understand, talked to his family and spent several moments, having spent so many days hungry, spent several moments talking to his mother about what would be on the menu when he got home.

There's no confirmation yet, Wolf, when he will be flying home. But what is sure is that he will soon be home to the sweet taste of freedom and mom's dinners. BLITZER: Well, that's good news for him. Karl Penhaul, thanks very much for that report. We'll continue to monitor the fate of his fellow companion who are still missing out there. Thanks very much, Karl, for that report.

When we get back, we'll go back to Japan. We'll take a look at the earthquake registering 8.0 in northern Japan, an earthquake on the island of Hokkaido just off the coast of Hokkaido. We'll get some analysis what exactly happened. The fear of tsunamis, these high waves, perhaps six to eight feet. Also get some information on what this could mean for the people who are there. Also we're checking in with our Rebecca MacKinnon. She'll come back to our program live from Tokyo with all the latest information.

Beyond that, we're looking at other stories, including -- the heat is on Arnold Schwarzenegger, as he picks up important endorsements in the California recall race. Find out what it might mean for the Republican Party.

And sexual abuse inside the U.S. Air Force Academy. There's new information breaking right now on the investigation and the fallout. We'll go live to Colorado for details.

(COMMERCIAL BREAK)

(INTERRUPTED BY CNN COVERAGE OF BREAKING NEWS)

BLITZER: Let's take a quick check of some other news making headlines right now.

(NEWSBREAK)

BLITZER: Word of the endorsements follows last night's no-holds barred debate in which the five leading gubernatorial candidates tackled each other as much as the issues.

(BEGIN VIDEOTAPE)

ARNOLD SCHWARZENEGGER, (R) CA GOVERNOR CANDIDATE: You know what you guy do, you politicians?

CRUZ BUSTAMANTE, (D) LIEUTENANT GOVERNOR OF CALIFORNIA: Yes, Arnold, go ahead.

SCHWARZENEGGER: You go into the classroom, you do the photo op, then you leave and we never see you again. I am there all the time.

PETER CAMEJO, (GREEN) CA GOVERNOR CANDIDATE: We're 27th in education and we're No. 1 in the nation in economy. But all they want to do is cut, cut, and rip, rip over here to my right, and the others, I don't know what they do. They get all the money in the world they spend it all we don't know where it went. I'm calling for a five-year audit. I want a five-year audit to find out how we had a $30 billion surplus turn into a $38 billion deficit.

TOM MCCLINTOCK, (R) CA GOVERNOR CANDIDATE: Disadvantaged children come in all colors. It is their condition of disadvantage that we seek to compensate. It is not a question of race. I think that this nation's best is when we're all one race, an American race.

BUSTAMANTE: You know, when you have megacorporations, the biggest in the history of the world like Wal-mart, who are underpaying their people, and then as a result, they give them official documents to go and apply for food stamps, and for public healthcare, that's a burden that taxpayers can't afford any longer either.

SCHWARZENEGGER: In California, we have a three-strike system. You guys put wool over the people's eyes twice. The third time now you're out. October 7, you guys are out.

ARIANNA HUFFINGTON (I) CA GOVERNOR CANDIDATE: Arnold mentioned the three strikes and you're out law. I like the three strikes and you're out when it comes to corporate felons.

SCHWARZENEGGER: Your personal income tax have the biggest loophole. I can drive my Hummer through it, that's how big the loophole is. Let me tell you something. I don't know what you're talking about.

HUFFINGTON: Completely hypocritical of Arnold. Let me finish. Let me finish. You know, this is completely typical of the way you treat women. We know that. But not now.

STATHAM: That was a direct and personal attack on Mr. Schwarzenegger, so would you respond?

SCHWARZENEGGER: I would just like to say that I just realized that I have a perfect part for in Terminator 4.

(BEGIN VIDEOTAPE)

BLITZER: So, who were the winners and the losers? Joining me now from California to talk about all that, two special guests. Art Torres, he's chairman of the California Democratic Party. His Republican counterpart, Duf Sundheim. He's the Republican Party Chairman in the state. Thanks very much gentlemen for joining us.

Mr. Torres, I think it's fair to say that Arnold Schwarzenegger proved he can compete with the professional politicians.

ART TORRES, CHAIRMAN CALIF. DEMOCRATIC PARTY: Yes, but he can't compete with Arianna. I think that's what really revealed the very intricate part of why he's not strong among women voters in California. I think the way Arianna was treated clearly was an opening door there.

Quite frankly, there really were no winners last night. I think when you look at the whole panel, it was very clear that Arnold's people stayed with Arnold, et cetera. The people to look for in the polling coming up are where are the independent voters. Right now they're moving toward no on the recall.

BLITZER: I assume you disagree with that Mr. Sundheim. DUF SUNDHEIM, CHAIRMAN CALIF. REPUBLICAN PARTY: Well, yes our polling doesn't reflect that at all. We're steadily up and the yes on the recall by eight to ten points. In terms of the overnight polling that was done on the debate, I could see why Art would want to say nobody won, because Schwarzenegger was in the 30s, McClintock in the 20s and Bustamante was in the teens.

BLITZER: Bustamante has a tough road ahead of him doesn't he, Mr. Torres?

TORRES: Yes, he does. I think he could have been more aggressive last night, but I think he was trying to temper his performance. But he stuck to the issues. And quite frankly, most of the newspapers this morning, especially here in San Francisco, indicated that the three candidates, Bustamante, Camejo and McClintock were the only ones of the 5 who basically laid out a vision with specific notions and solutions that ought to be done obviously from different perspectives.

SUNDHEIM: San Francisco, by the way, Wolf, has a 16 percent Republican registration. But I thought...

TORRES: I'm talking about "The Chronicle," not the people.

SUNDHEIM: Well, "The Chronicle" reflects the people.

TORRES: Oh, okay.

SUNDHEIM: It was also very interesting was that Bustamante really blamed Davis for the past five years of failure, saying that this administration has spent too much. I think that was a glaring admission by a member of the Davis/Bustamante regime that they haven't been acted responsibly in the last five years.

TORRES: Not at all. I think what really happened was we understand why this economy went down, the dotcom collapse here in Northern California, a number of other areas. When you look at the state as a whole, 800,000 new jobs net were created by this governor, 41 new power plants already online and permitted, 24 online, providing. So I don't know where this economy is going.

BLITZER: Mr. Sundheim, as long as there 2 top-tier Republicans and one Democrat, namely Schwarzenegger and McClintock, wouldn't it be better for the Republicans if one of them dropped out.

SUNDHEIM: Yes, it clearly would be better if one of them did drop out. But our polling again today shows that that's not necessary. Clearly, it would give us a huge advantage, but I think you're seeing a coalescing of the Republicans around one candidate irrespective of what the candidates may do.

Because I think Republicans, Independents and Democrats, 35 percent of the Democrats in this state sign these petitions, Wolf. They understand that they want change in California, so the voters are going to make the decision as to who is best to bring about the change. TORRES: But 79 percent of Democrats are opposed to this recall. That's reflected in recent polls not just internally.

BLITZER: Mr. Torres, if Tom McClintock were to drop out, would that guarantee Arnold Schwarzenegger as the next governor of California?

TORRES: No I don't think so, because I think the people who are supporting Tom McClintock -- and quite frankly the Republican party, at least from my perspective, is hemorrhaging right now -- they're in the intensive care unit, trying to decide who they really are. Am I conservative or am I a deal maker. Am I going to try to win an election or stick to my principles. For Darrell Issa and Bill Simon to come with Arnold, we see a division and that might not prove well for Schwarzenegger, because conservative, the rank and file at least, will think they were betrayed.

SUNDHEIM: We're the inclusive party now, Wolf. We represent a broad spectrum as can you see from last night. Bustamante represents a narrow interest of the special interest...

TORRES: Well, he was the only Democrat on the panel.

BLITZER: Unfortunately, gentlemen, we have to leave it right there. I promise we'll continue this debate over the next several days. Thanks both of you for joining us.

Here is your chance to weigh in on the story. Our Web question of the day is this, who won Wednesday night's recall debate, Bustamante, Peter Camejo, Arianna Huffington, Tom McClintock, Arnold Schwarzenegger. We'll have the results later in the broadcast. Vote right now. Go to CNN.com/wolf.

Time out for a teacher's aide. Parents outraged after she allegedly used hate to discipline their young children.

And bake sale blowup. It was a protest on affirmative action. Cookies for sale. And you won't believe how the students came up with the prices. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Now to a follow up to the story of the sexual misconduct scandal at the U.S. Air Force Academy in Colorado. CNN affiliate KMGH and its investigative team brought you the account of a former air force cadet, her first name is Aya. She was assaulted by a fellow cadet who admits the attack. The air force discharged the admitted attacker, Maurice Cooper under honorable circumstances and did not cite the attack as the reason for his dismissal. Maurice Cooper is now enlisted in the U.S. Army. Because of this report by KMGH, there is new fallout.

Reporter John Ferrugia who is breaking all of these stories is joining us now live once again from Denver.

John, what's the latest? JOHN FERRUGIA, KMGH: Wolf, the Department of Defense inspector general is now examining every one of the files of those cadets who were dismissed looking into those files to find out whether there is in fact a sexual assault and in fact if those people are now in the armed services anywhere, he wants to know about it.

BLITZER: You were just also over at the Air Force Academy and have been speaking to the new leadership. What exactly are they saying to you about these latest developments and this entire scandal?

FERRUGIA: The headline today was confidentiality. The civilian review panel has come back to the air force and said, we want women to be able to report confidentially. They're backed by victim advocates. But today General John Rosa,the superintendent said if he does that, he could be back in the same box again. He can't go after the perpetrator. Here is what he said.

(BEGIN VIDEO CLIP)

LT. GEN. JOHN ROSA, SUPT. AIR FORCE ACADEMY: If I have a system that has total confidentiality, I will know that something happened but I won't know who, I won't know what, and I won't know the victim.

(END VIDEO CLIP)

FERRUGIA: And what's going on now is that the crisis team is coming in to work this issue and the other 21 recommendations that civilian review committee has recommended that starts next week.

BLITZER: John Ferrugia, doing all this terrific reporting for. John, we'll be checking back with you. Thanks very much.

FERRUGIA: OK, Wolf, always a pleasure, see you.

BLITZER: A protest against affirmative action. Very unusual from the start and it backfired. We'll tell you how.

FERRUGIA: Plus, an elementary school in Florida has to answer to some very angry parents over the alleged punishment of some students. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Looking at live pictures of the U.S. Senate where by a 95 to nothing vote the Senate has just passed legislation allowing the do-not-call list to go forward. This follows the 412 to 8 vote in the House of Representatives. Now President Bush will sign this into law.

At a Coral Gables, Florida, grade school, a teacher has been reassigned, and a voluntary teacher's aid is staying home. Miami Dade school police are investigating complaints that the aide taped several first graders to their seats as punishment. The parents of one alleged victim are suing.

(BEGIN VIDEO CLIP) JUDY HEREU, PARENT: He placed his hands on his lap. There was a piece of tape taped across his hands to his lap. And also to the chair. And then another piece across the torso, also to the chair. And lastly, a third piece was placed over the mouth, which he later told me that he was spared. Quote, unquote, "the teacher gave him a last chance and spared him of putting the piece of tape over his mouth."

QUESTION: Why was that?

HEREU: Because he was crying so uncontrollably.

(END VIDEO CLIP)

BLITZER: School officials say the teacher and the aide both deny the allegations and an investigation is now under way.

If you want to make a political statement, have a bake sale. That was the plan cooked up by members of a conservative student group at Southern Methodist University in Texas. They were protesting affirmative action and sold cookies and different prices for different ethnic groups to make their point. Someone complained that the bake sale was offensive and school officials shut them down.

(BEGIN VIDEO CLIP)

DAVID RUSHING, YOUNG CONSERVATIVES OF TEXAS: We were selling cookies to different races for different prices. However, it was done in such a way to illustrate that discrimination is wrong. That was the whole point of the event.

UNIDENTIFIED MALE: It was not an accurate depiction of what affirmative action is. Affirmative action is not solely based on race.

(END VIDEO CLIP)

BLITZER: SMU's officials released a statement defending the university's move. It says among other things SMU has a long tradition of encouraging open debate and open forum on affirmative action is already planned for October 8. We'll have the results of our "Web Question of the Day," that's next.

(COMMERCIAL BREAK)

BLITZER: There you see the results of our unscientific "Web Question Of the Day." Schwarzenegger wins. "LOU DOBBS TONIGHT" starts right now.

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 September 25, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is CNN Breaking News.
WOLF BLITZER, CNN ANCHOR: I'm Wolf Blitzer in Washington. Only moments ago, a huge earthquake hitting northern Japan, a magnitude preliminary read 7.8 rocking the northern Japan island of Hokkaido, authorities fearful there is a possibility of a Tsunami in this northern Japanese island.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Putting the knot back in do not call.

UNIDENTIFIED MALE: You can see how fast this Congress is prepared to move when 50 million Americans are angry.

BLITZER: But will your phone really stop ringing?

What did he find? The chief U.S. weapons hunter is back from Iraq.

Ambush and assassination, terrorists have a field day in Baghdad.

UNIDENTIFIED MALE: What they've actually had is the enemy coming to them.

BLITZER: Escape in the jungle, a teenage tourist makes a break from kidnappers.

UNIDENTIFIED MALE: I jumped off a cliff very quickly. I was lucky not to have broken my arms and legs.

BLITZER: Cookies and controversy, burned up over a college bake sale.

UNIDENTIFIED MALE: We weren't selling cookies to different races for different prices.

(END VIDEOTAPE)

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.

BLITZER: It's Thursday, September 25, 2003. Hello from Washington, I'm Wolf Blitzer reporting.

We're following with a breaking story. We're beginning right now in northern Japan. As I just reported a huge earthquake erupting only within the last few moments we're told.

CNN's Rebecca MacKinnon is joining us now live on the phone from Tokyo. Rebecca we're hearing the preliminary magnitude 7.8. That's a pretty big, powerful earthquake.

REBECCA MACKINNON, CNN TOKYO BUREAU CHIEF (via telephone): Yes, that is a big, powerful earthquake, Wolf. One thing to note it was off the coast of Japan's northern island of Hokkaido.

Japan is composed of a string of islands. Hokkaido is the northernmost island. This quake happened off the eastern coast of that island of Hokkaido, roughly 60 kilometers underground.

And, as you say, the Richter scale magnitude 7.8, that's a large earthquake. That is larger than the scale of the earthquake that hit southern Japan in 1995. At this point, however, there are no reports of human casualties.

There are reports that waves of the Tsunami, which is a large wave of up to three feet or so, are expected to hit the coast and that all residents living along that eastern coast of Hokkaido must evacuate to higher ground immediately.

There's also an oil refinery along the coast that has been damaged due to the quake, large fire, firefighters trying to put that out; however, at this point no further reports of either structural damage or casualties at this point - Wolf.

BLITZER: We're showing video, Rebecca, of a room where the earthquake was being felt. Clearly you can see what's going on. Our viewers are watching it right now as filing cabinets begin to fall, television screens go down.

The northern island of Hokkaido in Japan, is this a heavily populated area Rebecca?

MACKINNON: Well, Hokkaido is the least populated part of Japan. It is not as well populated as the main island of Honshu (ph) which is where Tokyo and Japan's largest cities are located; however, you do have cities of tens of thousands of people along that coastal area that we're talking about.

There are several million people living on Hokkaido itself and certainly along that coast there's one fishing city that I've actually been to where you have a lot of facilities, both for fishing and residences very close to the sea.

It's a seaside town so I think we can certainly expect some damage; however, at this point no exact reports of casualties. The quake, in fact, happening about an hour ago, so we're still waiting for reports of casualties to come in but no deaths certainly reported at this point in time probably credited in part to the fact that the quake itself, the epicenter was off under the ocean.

BLITZER: Rebecca, I know you're working on this story but a lot of Japan is powered by nuclear energy. Do you know if there is a nuclear reactor in Hokkaido in that area and, if there is, are these nuclear reactors in Japan ready to withstand earthquakes?

MACKINNON: Well, that is a good question, Wolf, and there are nuclear facilities in Hokkaido. I do not have information at this point in time about exactly how close to that coastal area hit by earthquakes the Hokkaido facilities happen to be; however, this is a big issue around Japan.

Japan is heavily reliant on nuclear power for its energy because it has no oil of its own and there is always great controversy in Japan about whether this is a wise idea given how earthquake prone this country is.

However, people who build the nuclear power plants will tell you that they go to all precautions structurally to avoid, to make sure, that damage will be minimized during any quakes. However, at this point in time, I don't have any further information about any possible damage that may have happened in Hokkaido - Wolf.

BLITZER: Rebecca, there's, Japan as you point out a series of islands including this island in the northern part of the country Hokkaido. There's enormous fear of these Tsunamis.

To our viewers in North America who may not be familiar with the dangers that could come from a Tsunami, usually it takes a while for them to develop after an earthquake, some kind of seismic activity. What are we bracing for in terms of the Tsunamis?

MACKINNON: Well, the national media is warning people of waves of about two meters high, which I guess just roughly is between three and six feet hitting the coast and, you know, what this means is definitely the water goes up substantially and, as you say, it does take a while to hit.

However, if you're living right on the coast and the water level rises that much that can certainly cause a great deal of damage and so people are being told that this is an emergency and they must leave the coastline immediately to ensure their safety - Wolf.

BLITZER: All right, Rebecca, we're going to let you go and get some more information for us.

Let me recap for our viewers who are just tuning in, an earthquake in the northern part of Japan only within the past hour registering a preliminary magnitude 7.8. The earthquake about 60 miles, kilometers actually, about 36 miles under the sea bed off the coast of this northern Japanese island, as you can see some serious damage already.

We have no reports of casualties but this is very, very early in the game. We'll continue to follow this story, get back to Rebecca and get some more information of course as it develops. But let's move on to other important stories that we're following right now, a warning, a very serious warning over nuclear weapons. This year the United Nations inspectors found traces of enriched uranium at a facility in Iran.

Now, just a month before Iran must meet a U.N. deadline to prove it has no secret weapons program there is fresh cause for concern.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): With the International Atomic Energy Agency finding traces of enriched uranium at a second site in Iran, President Bush wasted no time in issuing a stern warning.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It is very important for the world to come together to make it very clear to Iran that there will be universal condemnation if they continue with a nuclear weapons program.

BLITZER: The president says he's pleased with world reaction so far and says he'll be talking about Iran Friday with Russian President Vladimir Putin at Camp David.

It's a thorny issue because Russia continues its nuclear cooperation with Iran, helping construct a nuclear reactor. Both countries insist it's for peaceful purposes. Others are doubtful because Iran has so much oil why does it need nuclear energy?

White House officials say Iran has one last chance to comply with IAEA inspection demands.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECY.: I have an October 31 deadline and at that point if they fail to meet what the IAEA laid out, then we believe it should be taken to the Security Council.

BLITZER: A new U.N. resolution could set the stage for diplomatic and economic sanctions against Iran and perhaps even more severe action. Iran continues to steadfastly deny it's working on a bomb.

KAMAL KHARRAZI, IRANIAN FOREIGN MINISTER: It is true that we have installation to enrich uranium but as long as it is under the safeguard of IAEA and under the severe control regime of IAEA provided we sign additional protocol, there should be no concern. But why there is concern? But in spite of that Americans say that you have to accept additional protocol and the same time you should stop your enrichment facility and that's not acceptable to us.

(END VIDEOTAPE)

BLITZER: And this additional note, Iranian officials say there may be a simple explanation for the traces of enriched uranium that may have been found on the sophisticated equipment. They say that equipment was imported from abroad. We'll continue to follow this story. Meanwhile, David Kay, the man in charge of the CIA's hunt for Iraqi weapons of mass destruction is due to report to Congress soon and by all accounts he won't have much to report.

U.S. officials say Kay has reached "no firm conclusions about Iraqi weapons of mass destruction." The White House says the search team is continuing to do it's job adding, and I'm quoting now, "the truth will come out."

While President Bush and U.S. diplomats have been lobbying other nations to send peacekeeping forces to Iraq, the Pentagon has been making backup plans which call for a possible call-up of additional reserves.

Let's go live to our Senior Pentagon Correspondent Jamie McIntyre - Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Wolf, a full court press on Capitol Hill today, Ambassador Paul Bremer, Deputy Defense Secretary Paul Wolfowitz, U.S. commander General John Abizaid, even the outgoing Army Vice Chief John Keane all there to make the case for the $87 billion the Bush administration says it needs for Iraq.

During the testimony, the Pentagon acknowledged that the failure so far to get enough foreign troops to join the mission in Iraq may result in a call-up of between 10,000 and 15,000 additional U.S. Reserves next year and, as you might expect, that didn't go over well with Congress.

(BEGIN VIDEO CLIP)

REP. NEIL ABERCROMBIE (D), ARMED SERVICES CMTE.: The draft has returned to this country except it's by default and a whole lot of people that are waving the flag out there and talking about our responsibilities in the war on terror are getting to watch it on television because we're drafting by default through Guard and Reserve.

(END VIDEO CLIP)

MCINTYRE: The problem is the U.S. hoped a multinational division would replace the battle weary 101st Airborne. If that doesn't happen active duty troops, either Army or Marines, will have to be called up along with Reserves for one year tours of duty.

(BEGIN VIDEO CLIP)

GEN. JOHN KEANE, U.S. ARMY: A year is a long time in Iraq to be sure but it is worth it. It is worth it given what we're up against and what our opponents are after. They want to destroy the moral and political will of the American people.

(END VIDEO CLIP)

MCINTYRE: The Pentagon is trying to boost moral by giving troops 15 days of R&R where they can come home and be with their families but the Reserve call-up is not a done deal at this point. A top commander says he's still hopeful that either Turkey or maybe Pakistan will come through with a division in time to replace the 101st - Wolf.

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

And questions about ties to Halliburton continue to haunt the Vice President Dick Cheney. Now, a congressional report says he still has a financial interest in the giant energy, engineering, and construction company he used to run. Halliburton has more than $2 billion worth of contracts to help rebuild Iraq.

The report says Cheney's deferred pay and more than 400,000 stock options are potential, potential conflicts of interest. Democratic Senator Frank Lautenberg of New Jersey commissioned the report by the Congressional Research Service.

(BEGIN VIDEO CLIP)

SEN. FRANK LAUTENBERG (D), NEW JERSEY: As the CRS report shows, the ethic standards for financial disclosure is clear. Vice President Cheney has a financial interest in Halliburton.

(END VIDEO CLIP)

BLITZER: CNN's White House Correspondent Dana Bash is joining us now live from the White House with some reaction. What are they saying over there Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Senior Cheney aides said that Lautenberg, Senator Lautenberg's comments are irresponsible and baseless. Here's what the vice president's office says in terms of explaining how all this is connected.

That, yes, the vice president does still get money from Halliburton but it is his salary from 1999. It is a package that he decided a long time ago to defer before they say he knew that he was going to be on the ticket with George W. Bush. Perhaps he decided to do it for tax purposes.

But this is about $370,000 he's gotten over the last two years. He will get it until 2005 but what the vice president's office says is that he took out an insurance policy a couple of years ago in order to make sure that there is no appearance of conflict of interest.

Therefore, whether or not Halliburton does well or does poorly, according to the vice president's office, Mr. Cheney still gets the money. He still gets his salary that he deferred from 1999.

Therefore, the senior Cheney aide says that any argument that he does have a financial interest is just not valid because he doesn't benefit if Halliburton does well. That's what the vice president's office says.

BLITZER: All right, Dana Bash with the latest from the White House on that sensitive subject. Dana thanks very much.

(BREAKING NEWS)

CNN's Kelli Arena has got new developments on the Zacarias Moussaoui case. She's joining us now live. What's going on Kelli?

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Well, Wolf, the headline is that the government has asked a district court judge to drop all of the charges against Zacarias Moussaoui.

Now before you fall off your seat, what this means is that the government is trying to get the case against Moussaoui to the Appeals Court as quickly as it can.

If you remember, Wolf, the district judge had ruled that Moussaoui could have access to three al Qaeda detainees who Moussaoui says could clear him of any involvement in the September 11 attacks.

The government has refused to comply with the judge's order saying that allowing Moussaoui access to those detainees would jeopardize national security. So the judge has to sanction the government, has to punish the government for refusing to follow her orders.

The government is saying here's an idea for your punishment. Dismiss the charges. That will provide a clear and very quick route to the Appeals Court. We'd like to ask the Appeals Court to overrule your ruling saying that we have to present these detainees and move this case along.

So, that is the latest in this very complicated ongoing saga - Wolf.

BLITZER: Kelli, very briefly, what are the prospects of just forgetting about the whole judicial process and simply going back to a military tribunal, actually throwing it into a military tribunal where they don't have to worry about these niceties of regular jurisprudence?

ARENA: Well, that's been sort of the undercurrent all along, Wolf, and it has always been understood, at least privately that if all of the appeals options were exhausted by the government that they would transfer him over to military custody.

But the government really has been very resistant to that. They want to try as hard as they can to keep this in the judicial system to prove that they can handle cases like this.

BLITZER: CNN's Kelli Arena, breaking news here on CNN. We'll be checking back with you. Thanks very much, Kelli, for that important news.

We're going to take a quick break but we're getting new information about our top story, this earthquake in northern Japan. The U.S. Geological Survey now only within the past few minutes saying this earthquake had an 8.0 magnitude. That's significantly bigger than the preliminary magnitude Japanese authorities were reporting.

When we come back, more on this breaking news story, stay with us.

(COMMERCIAL BREAK)

(BREAKING NEWS)

BLITZER: There's a breaking story we've been following since the top of the hour, an earthquake in Japan.

You're looking at these pictures. Only within the past hour or so we're now told by the U.S. Geological Survey it registered 8.0, 8.0. That's a very, very large, significant earthquake in the northern Japanese island of Hokkaido.

We're told it's a fairly well populated island, a lot of industrial parks, also a nuclear reactor on Hokkaido. We're also told that the actual center of the earthquake was about 30 to 40 miles offshore in the middle of the sea out there not that far away but clearly felt on Hokkaido.

We're going to go back there, get some more information, 8.0, a huge earthquake in the northern part of Japan. We'll check back and get some more information on this breaking story as it comes in.

But let's move on to some other news that we're following right now here in Washington. The U.S. Congress is working with what is fairly, accurately described as lightning speed to ensure that the National "Do Not Call" list for telemarketers, struck down by a federal court only yesterday, will survive.

A congressional historian tells us only during times of national crisis has Congress ever acted this quickly and possibly never before in response to a court order but will all this effort really keep telemarketers from getting to you?

CNN's Greg Clarkin joins us from New York.

GREG CLARKIN, CNN CORRESPONDENT: Well, Wolf, right now the Senate is indeed debating a bill that would make it very clear that the FTC, the Federal Trade Commission, does indeed have authority over the National "Do Not Call" list. Earlier today the House passed a similar bill all in an effort to protect the list.

(BEGIN VIDEOTAPE)

CLARKIN (voice-over): They moved with lightning quick speed, both the House and the Senate taking up bills to protect the National "Do Not Call" list just a day after a federal judge ruled against it. The judge said the Federal Trade Commission didn't have the power to create the list. Congress left no question that it did.

REP. BILLY TAUZIN (R), LOUISIANA: We should probably call the bill "This Time we Really Mean it Act" to cure any myopia in the Judicial Branch. The bill leaves no doubt as to the intent of Congress.

CLARKIN: The intent is to get a bill to the White House and have it signed in time to make sure the National "Do Not Call" list takes effect next week as planned.

MCCLELLAN: People should have the right to choose if they don't want to receive those solicitations at home when they're trying to help their children with their homework or they're trying to have dinner with their family.

CLARKIN: Telemarketers say their right to call is protected by the right to free speech. So far, more than 50 million people have signed on expecting to get rid of some of those calls but veterans of the fight against telemarketers say don't expect too much.

ROBERT BULMASH, FOUNDER, CEO, "PRIVATE CITIZEN": I feel that the public is more encouraged than they necessarily should be. Unfortunately, there's quite a few loopholes in the "Do Not Call" list. Personally, I consider telemarketing calls to include sales, survey, fund raising, and political calls.

CLARKIN: But those calls are exempt and even with your name on the list, a company you purchase something from can call you for up to 18 months and simply calling a company to ask about a service or a good can give that company the right to call you for three months.

Balmash has battled telemarketers for more than a decade. He said the list makes a dent in the problem but even more is needed.

BALMASH: It's a fundamental right to be able to be left alone someplace by those we seek to avoid and if that place doesn't exist in our own homes where we raise our families, where we rest after a hard day's work, where we care for our elderly, if that place is not in our homes we have no right to be left alone anywhere in this country.

(END VIDEOTAPE)

CLARKIN: But, for now, the "Do Not Call" list really is as good as it gets and the FTC is encouraging people to continue to sign up over the web or over the telephone.

And, Wolf, we also want to bring you up to date on some breaking news on another story that consumers and investors especially have followed very closely. That is the turmoil at the New York Stock Exchange.

Just moments ago we're getting word that Carl McCall, he was the head of the Compensation Committee at the NYSE, this is the committee that granted that enormous pay package to Dick Grasso, Grasso resigned under fire last week but Carl McCall is stepping down as well.

He has submitted his letter of resignation to John Reed, the interim leader of the NYSE saying that he had tried to provide leadership but he believes that at this point it's better if the NYSE moves forward unencumbered by the past and so he is resigning effective September 29th. Again, this is H. Carl McCall, the head of the Compensation Committee at the NYSE stepping down September 29 -- Wolf.

BLITZER: All right, Greg Clarkin with all that information for us, Greg thanks very much for that.

And there are new developments surrounding last month's mysterious death by bombing of a pizza delivery man in Erie, Pennsylvania. Brian Wells was killed when explosives attached to a metal collar around his neck went off. He had just robbed a bank and told police he had been forced to do it.

Today, federal agents went public with new clues and a reward. Look at this. They released two photos of a cane-shaped firearm found in Wells' car. They also announced a $50,000 reward for information in the case, which of course still remains unsolved.

Much more coming up on our top story, our breaking news involving an earthquake, yes an earthquake in Japan, the northern Japanese island of Hokkaido just off the coast of Hokkaido, registered according to the U.S. Geological Survey 8.0 on an earthquake with a registry of 8.0. That's a very large earthquake.

We're going to go back to Japan, get some more information, get some assessment what's going on, fears right now of Tsunamis, huge waves that could endanger people in the northern part of Japan. We'll get to that shortly.

Also, Colombia, the kidnap capital of the world, one daring teen escapes his captors but several tourists are still being held somewhere in the jungle. We'll take you there live to Bogota.

An elementary outrage one teacher's aide in the hot seat for unusual disciplinary methods; plus this...

(BEGIN VIDEO CLIP)

LT. GOV. CRUZ BUSTAMANTE (D), GUBERNATORIAL CANDIDATE: There's no rocket science to this.

(END VIDEO CLIP)

BLITZER: The hits keep coming in California but is anyone emerging as a leader? I'll talk with the state's Republican and Democratic party chairmen. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

Colombia's army is intensifying the search for a group of international tourists believed kidnapped by leftist rebels. They included a British teenager who managed an escape right out of the movies.

Karl Penhaul is joining us now live from Bogata with more -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi, Wolf. Yes, this group had been headed to ancient Indian ruins known as the Lost City high in Colombia's Sierra Nevada Mountains. It was supposed to have been an Indiana Jones style adventure that went terribly wrong.

(BEGIN VIDEOTAPE)

PENHAUL (voice-over): Battered, bruised, lucky to be alive. Matthew Scott undergoes medical checks at military base. In broken Spanish, he recounts his daring escape.

"At 2:00 in the afternoon it was raining in the mountains," he says. "The visibility wasn't good at all, so I ran down the mountain very quickly."

Scott says he escaped just days after gunmen kidnapped him, another Briton, four Israelis, a Spaniard and a German. He says he's no idea who his captors really were.

"Some say they're paramilitaries," he says. "Others say they're guerrillas. They all say different things."

Colombia is kidnap capital of the world -- 3,000 abductions a year. Most blamed on rebel factions, locked (ph) in a long-running war to overthrow the state.

Guerrillas are holding three American contractors in southern Colombia. On the run from gun-toting kidnappers, Scott says he had only stream water to drink and nothing to eat for 12 days. The peaks soar to more than 19,000 feet. Lucky, he says, not to break his arms or legs as he tumbled into deep gorges. Scott says he finally found care in the mountain village of these Koge (ph) Indians. They nursed him on beans and oranges and called in the army.

Scott is now in the capital of Bogota en route to London. He says when he last saw them, his fellow hostages were demoralized and depressed, forced to march in torrential rains.

"I don't know anything about my companions or if they're in good health," he says. "I only know that the man from Israel has asthma and the others are very demoralized, depressed. They have to walk a lot every day. The rain is heavy."

(BEGIN VIDEOTAPE)

PENHAUL: Scott has spent most of the day in the British embassy. Residences talking to officials, being debriefed and resting. He's also, we understand, talked to his family and spent several moments, having spent so many days hungry, spent several moments talking to his mother about what would be on the menu when he got home.

There's no confirmation yet, Wolf, when he will be flying home. But what is sure is that he will soon be home to the sweet taste of freedom and mom's dinners. BLITZER: Well, that's good news for him. Karl Penhaul, thanks very much for that report. We'll continue to monitor the fate of his fellow companion who are still missing out there. Thanks very much, Karl, for that report.

When we get back, we'll go back to Japan. We'll take a look at the earthquake registering 8.0 in northern Japan, an earthquake on the island of Hokkaido just off the coast of Hokkaido. We'll get some analysis what exactly happened. The fear of tsunamis, these high waves, perhaps six to eight feet. Also get some information on what this could mean for the people who are there. Also we're checking in with our Rebecca MacKinnon. She'll come back to our program live from Tokyo with all the latest information.

Beyond that, we're looking at other stories, including -- the heat is on Arnold Schwarzenegger, as he picks up important endorsements in the California recall race. Find out what it might mean for the Republican Party.

And sexual abuse inside the U.S. Air Force Academy. There's new information breaking right now on the investigation and the fallout. We'll go live to Colorado for details.

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(INTERRUPTED BY CNN COVERAGE OF BREAKING NEWS)

BLITZER: Let's take a quick check of some other news making headlines right now.

(NEWSBREAK)

BLITZER: Word of the endorsements follows last night's no-holds barred debate in which the five leading gubernatorial candidates tackled each other as much as the issues.

(BEGIN VIDEOTAPE)

ARNOLD SCHWARZENEGGER, (R) CA GOVERNOR CANDIDATE: You know what you guy do, you politicians?

CRUZ BUSTAMANTE, (D) LIEUTENANT GOVERNOR OF CALIFORNIA: Yes, Arnold, go ahead.

SCHWARZENEGGER: You go into the classroom, you do the photo op, then you leave and we never see you again. I am there all the time.

PETER CAMEJO, (GREEN) CA GOVERNOR CANDIDATE: We're 27th in education and we're No. 1 in the nation in economy. But all they want to do is cut, cut, and rip, rip over here to my right, and the others, I don't know what they do. They get all the money in the world they spend it all we don't know where it went. I'm calling for a five-year audit. I want a five-year audit to find out how we had a $30 billion surplus turn into a $38 billion deficit.

TOM MCCLINTOCK, (R) CA GOVERNOR CANDIDATE: Disadvantaged children come in all colors. It is their condition of disadvantage that we seek to compensate. It is not a question of race. I think that this nation's best is when we're all one race, an American race.

BUSTAMANTE: You know, when you have megacorporations, the biggest in the history of the world like Wal-mart, who are underpaying their people, and then as a result, they give them official documents to go and apply for food stamps, and for public healthcare, that's a burden that taxpayers can't afford any longer either.

SCHWARZENEGGER: In California, we have a three-strike system. You guys put wool over the people's eyes twice. The third time now you're out. October 7, you guys are out.

ARIANNA HUFFINGTON (I) CA GOVERNOR CANDIDATE: Arnold mentioned the three strikes and you're out law. I like the three strikes and you're out when it comes to corporate felons.

SCHWARZENEGGER: Your personal income tax have the biggest loophole. I can drive my Hummer through it, that's how big the loophole is. Let me tell you something. I don't know what you're talking about.

HUFFINGTON: Completely hypocritical of Arnold. Let me finish. Let me finish. You know, this is completely typical of the way you treat women. We know that. But not now.

STATHAM: That was a direct and personal attack on Mr. Schwarzenegger, so would you respond?

SCHWARZENEGGER: I would just like to say that I just realized that I have a perfect part for in Terminator 4.

(BEGIN VIDEOTAPE)

BLITZER: So, who were the winners and the losers? Joining me now from California to talk about all that, two special guests. Art Torres, he's chairman of the California Democratic Party. His Republican counterpart, Duf Sundheim. He's the Republican Party Chairman in the state. Thanks very much gentlemen for joining us.

Mr. Torres, I think it's fair to say that Arnold Schwarzenegger proved he can compete with the professional politicians.

ART TORRES, CHAIRMAN CALIF. DEMOCRATIC PARTY: Yes, but he can't compete with Arianna. I think that's what really revealed the very intricate part of why he's not strong among women voters in California. I think the way Arianna was treated clearly was an opening door there.

Quite frankly, there really were no winners last night. I think when you look at the whole panel, it was very clear that Arnold's people stayed with Arnold, et cetera. The people to look for in the polling coming up are where are the independent voters. Right now they're moving toward no on the recall.

BLITZER: I assume you disagree with that Mr. Sundheim. DUF SUNDHEIM, CHAIRMAN CALIF. REPUBLICAN PARTY: Well, yes our polling doesn't reflect that at all. We're steadily up and the yes on the recall by eight to ten points. In terms of the overnight polling that was done on the debate, I could see why Art would want to say nobody won, because Schwarzenegger was in the 30s, McClintock in the 20s and Bustamante was in the teens.

BLITZER: Bustamante has a tough road ahead of him doesn't he, Mr. Torres?

TORRES: Yes, he does. I think he could have been more aggressive last night, but I think he was trying to temper his performance. But he stuck to the issues. And quite frankly, most of the newspapers this morning, especially here in San Francisco, indicated that the three candidates, Bustamante, Camejo and McClintock were the only ones of the 5 who basically laid out a vision with specific notions and solutions that ought to be done obviously from different perspectives.

SUNDHEIM: San Francisco, by the way, Wolf, has a 16 percent Republican registration. But I thought...

TORRES: I'm talking about "The Chronicle," not the people.

SUNDHEIM: Well, "The Chronicle" reflects the people.

TORRES: Oh, okay.

SUNDHEIM: It was also very interesting was that Bustamante really blamed Davis for the past five years of failure, saying that this administration has spent too much. I think that was a glaring admission by a member of the Davis/Bustamante regime that they haven't been acted responsibly in the last five years.

TORRES: Not at all. I think what really happened was we understand why this economy went down, the dotcom collapse here in Northern California, a number of other areas. When you look at the state as a whole, 800,000 new jobs net were created by this governor, 41 new power plants already online and permitted, 24 online, providing. So I don't know where this economy is going.

BLITZER: Mr. Sundheim, as long as there 2 top-tier Republicans and one Democrat, namely Schwarzenegger and McClintock, wouldn't it be better for the Republicans if one of them dropped out.

SUNDHEIM: Yes, it clearly would be better if one of them did drop out. But our polling again today shows that that's not necessary. Clearly, it would give us a huge advantage, but I think you're seeing a coalescing of the Republicans around one candidate irrespective of what the candidates may do.

Because I think Republicans, Independents and Democrats, 35 percent of the Democrats in this state sign these petitions, Wolf. They understand that they want change in California, so the voters are going to make the decision as to who is best to bring about the change. TORRES: But 79 percent of Democrats are opposed to this recall. That's reflected in recent polls not just internally.

BLITZER: Mr. Torres, if Tom McClintock were to drop out, would that guarantee Arnold Schwarzenegger as the next governor of California?

TORRES: No I don't think so, because I think the people who are supporting Tom McClintock -- and quite frankly the Republican party, at least from my perspective, is hemorrhaging right now -- they're in the intensive care unit, trying to decide who they really are. Am I conservative or am I a deal maker. Am I going to try to win an election or stick to my principles. For Darrell Issa and Bill Simon to come with Arnold, we see a division and that might not prove well for Schwarzenegger, because conservative, the rank and file at least, will think they were betrayed.

SUNDHEIM: We're the inclusive party now, Wolf. We represent a broad spectrum as can you see from last night. Bustamante represents a narrow interest of the special interest...

TORRES: Well, he was the only Democrat on the panel.

BLITZER: Unfortunately, gentlemen, we have to leave it right there. I promise we'll continue this debate over the next several days. Thanks both of you for joining us.

Here is your chance to weigh in on the story. Our Web question of the day is this, who won Wednesday night's recall debate, Bustamante, Peter Camejo, Arianna Huffington, Tom McClintock, Arnold Schwarzenegger. We'll have the results later in the broadcast. Vote right now. Go to CNN.com/wolf.

Time out for a teacher's aide. Parents outraged after she allegedly used hate to discipline their young children.

And bake sale blowup. It was a protest on affirmative action. Cookies for sale. And you won't believe how the students came up with the prices. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Now to a follow up to the story of the sexual misconduct scandal at the U.S. Air Force Academy in Colorado. CNN affiliate KMGH and its investigative team brought you the account of a former air force cadet, her first name is Aya. She was assaulted by a fellow cadet who admits the attack. The air force discharged the admitted attacker, Maurice Cooper under honorable circumstances and did not cite the attack as the reason for his dismissal. Maurice Cooper is now enlisted in the U.S. Army. Because of this report by KMGH, there is new fallout.

Reporter John Ferrugia who is breaking all of these stories is joining us now live once again from Denver.

John, what's the latest? JOHN FERRUGIA, KMGH: Wolf, the Department of Defense inspector general is now examining every one of the files of those cadets who were dismissed looking into those files to find out whether there is in fact a sexual assault and in fact if those people are now in the armed services anywhere, he wants to know about it.

BLITZER: You were just also over at the Air Force Academy and have been speaking to the new leadership. What exactly are they saying to you about these latest developments and this entire scandal?

FERRUGIA: The headline today was confidentiality. The civilian review panel has come back to the air force and said, we want women to be able to report confidentially. They're backed by victim advocates. But today General John Rosa,the superintendent said if he does that, he could be back in the same box again. He can't go after the perpetrator. Here is what he said.

(BEGIN VIDEO CLIP)

LT. GEN. JOHN ROSA, SUPT. AIR FORCE ACADEMY: If I have a system that has total confidentiality, I will know that something happened but I won't know who, I won't know what, and I won't know the victim.

(END VIDEO CLIP)

FERRUGIA: And what's going on now is that the crisis team is coming in to work this issue and the other 21 recommendations that civilian review committee has recommended that starts next week.

BLITZER: John Ferrugia, doing all this terrific reporting for. John, we'll be checking back with you. Thanks very much.

FERRUGIA: OK, Wolf, always a pleasure, see you.

BLITZER: A protest against affirmative action. Very unusual from the start and it backfired. We'll tell you how.

FERRUGIA: Plus, an elementary school in Florida has to answer to some very angry parents over the alleged punishment of some students. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Looking at live pictures of the U.S. Senate where by a 95 to nothing vote the Senate has just passed legislation allowing the do-not-call list to go forward. This follows the 412 to 8 vote in the House of Representatives. Now President Bush will sign this into law.

At a Coral Gables, Florida, grade school, a teacher has been reassigned, and a voluntary teacher's aid is staying home. Miami Dade school police are investigating complaints that the aide taped several first graders to their seats as punishment. The parents of one alleged victim are suing.

(BEGIN VIDEO CLIP) JUDY HEREU, PARENT: He placed his hands on his lap. There was a piece of tape taped across his hands to his lap. And also to the chair. And then another piece across the torso, also to the chair. And lastly, a third piece was placed over the mouth, which he later told me that he was spared. Quote, unquote, "the teacher gave him a last chance and spared him of putting the piece of tape over his mouth."

QUESTION: Why was that?

HEREU: Because he was crying so uncontrollably.

(END VIDEO CLIP)

BLITZER: School officials say the teacher and the aide both deny the allegations and an investigation is now under way.

If you want to make a political statement, have a bake sale. That was the plan cooked up by members of a conservative student group at Southern Methodist University in Texas. They were protesting affirmative action and sold cookies and different prices for different ethnic groups to make their point. Someone complained that the bake sale was offensive and school officials shut them down.

(BEGIN VIDEO CLIP)

DAVID RUSHING, YOUNG CONSERVATIVES OF TEXAS: We were selling cookies to different races for different prices. However, it was done in such a way to illustrate that discrimination is wrong. That was the whole point of the event.

UNIDENTIFIED MALE: It was not an accurate depiction of what affirmative action is. Affirmative action is not solely based on race.

(END VIDEO CLIP)

BLITZER: SMU's officials released a statement defending the university's move. It says among other things SMU has a long tradition of encouraging open debate and open forum on affirmative action is already planned for October 8. We'll have the results of our "Web Question of the Day," that's next.

(COMMERCIAL BREAK)

BLITZER: There you see the results of our unscientific "Web Question Of the Day." Schwarzenegger wins. "LOU DOBBS TONIGHT" starts right now.

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