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CNN Wolf Blitzer Reports

Pentagon says fewer troops is answer to violence in Iraq; Major effort underway to find killers of U.S. troops in Iraq

Aired November 06, 2003 - 17:00   ET

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


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


WOLF BLITZER, CNN ANCHOR: Happening now, Rosie O'Donnell is on the stand right inside this New York courthouse. We're standing by to hear directly from her once she emerges.
And, the Pentagon informs more than 100,000 U.S. troops and their families get ready for a year in Iraq.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Mission Iraq, the president gets his money.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America has the resources and the will to see this war through to victory.

BLITZER: But does America have the troops?

Now, a major call-up amid major criticism, it's this U.S. Senator versus the defense secretary. I'll speak live with John McCain.

CNN exclusive, murder just before 9/11, could he have tipped off the United States?

And are these lines getting shorter, what you need to know about the job market.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, November 06, 2003.

BLITZER: Big announcements from the Bush administration today more money and more troops for the mission in Iraq. The president signed an $87.5 billion package most of it destined for the occupation and reconstruction of Iraq.

The Pentagon says 130,000 troops will be rotated out of Iraq early next year but almost as many will be sent into Iraq to replace them.

And, on a day when two more U.S. troops died in Iraq, a top U.S. intelligence official reveals the United States doesn't really know just who is behind the daily attacks.

We'll go live to CNN's Suzanne Malveaux, she's at the White House; to our National Security Correspondent David Ensor; but we begin with our Senior Pentagon Correspondent Jamie McIntyre with news of a revolving door for U.S. troops in Iraq - Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Wolf, with violence against American troops on the rise, is it possible that fewer troops is the answer? That's what the Pentagon says.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Even as attacks on U.S. forces mount, the Pentagon is planning to send about 25,000 fewer troops to Iraq for the second year of U.S. occupation; however, the Pentagon argues the rotation plan provides a better mix of forces to battle insurgents.

DONALD RUMSFELD, DEFENSE SECRETARY: Numbers do not necessarily equate with capability. We're bringing in forces that are appropriate to deal with the evolving threats in Iraq today, including more mobile infantry elements.

MCINTYRE: Also, among the 85,000 fresh combat troops being alerted are three Army National Guard brigades built around the Army's new more nimble striker combat vehicles.

All together some 43,000 guard and reserve troops are getting the call, mostly Army, but Marines, Navy and Air Force units are also being tapped, some heading to Afghanistan. It's a strain on the citizen soldiers but unavoidable insists the Pentagon.

LT. GEN. NORTON SCHWARTZ, JOINT STAFF OPERATIONS DIRECTOR: Ladies and gentlemen, we are at war. This is not peacetime and so under the circumstances we find ourselves we are going to respond to the nation's call.

(END VIDEOTAPE)

MCINTYRE: Meanwhile, the Pentagon's estimate of the number of Iraqis providing security jumped by 3,000 in just a single day, 115,000 we told you yesterday, 118,000 today raising eyebrows about whether these numbers are inflated. The chairman of the Joint Chiefs says it's because of all the recruiting programs up and running and paying decent wages. They're getting a lot of Iraqis - Wolf.

BLITZER: Jamie, you're getting new information about the downing of that Chinook helicopter last Sunday in Iraq?

MCINTYRE: That's right, Wolf. Pentagon sources tell my colleague Barbara Starr that the indications are now that the helicopter did have a working system to try to divert heat-seeking missiles and apparently at least launched one flare according to an unconfirmed witness report.

They are still checking, investigating this to see what exactly happened but it does appear, this is the first indication the helicopter crew was able to take evasive maneuvers even though they were flying only 200 or 300 feet above the ground - Wolf.

BLITZER: And, Jamie, finally you had a remarkable story yesterday about a so-called forgotten soldier, an Iraqi who served with U.S. troops looking for a job now that he's back here in the United States seems to have been forgotten. What have you learned since that story aired yesterday?

MCINTYRE: Well, Wolf, apparently even as our story was airing the Pentagon was preparing to offer him a job and sources now tell me that Kadhim al-Waeli, a former free Iraqi fighter, an American born in Iraq, is going to be employed by the Department of Defense.

They won't tell us exactly what he's doing. It's apparently a dangerous assignment but he will be providing cultural and military advice to both U.S. and Iraqi troops.

BLITZER: CNN's Jamie McIntyre, thanks Jamie very much.

U.S. soldiers and support personnel on the home front are getting into the proper mindset now that Defense Secretary Rumsfeld has set the stage for a rotation early next year. Both troops and family members are taking the news in stride.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: He loves his job and he loves us but if he has to go, he has to go, and we'll deal with it.

UNIDENTIFIED MALE: They're like, you know, they want to do their job, looking forward to going out there and do their part. Morale is good.

UNIDENTIFIED FEMALE: As far as our unit and what we do is support with the Marines, it's always catch one as far as when they tell us to go we have to be ready to go.

(END VIDEO CLIP)

BLITZER: The new rotation scheduled to begin in January.

Here's your turn to weigh in on this story. Our web question of the day is this. "Does the United States have enough troops in Iraq?" You can vote right now. Go to cnn.com/wolf.

While you're there I'd 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 where you can read my daily online column, cnn.com/wolf.

President Bush today signed a measure providing more than $87 billion for Iraq and Afghanistan saying America now has the resources to achieve victory. Let's go live to our White House Correspondent Suzanne Malveaux - Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, it's $64 billion for military operations, $18 billion, more than $18 billion for Iraqi reconstruction.

The big victory here is that all of the reconstruction money is going to be in the form of grants, not loans, as the president wants. It merely guarantees he will not have to go back to Congress during an election campaign asking for more money.

Now, despite holes that show more than half Americans disagree with such a large amount, the president today argued this money shows that there is support for the U.S. mission inside Iraq. Earlier, the president outlined a broad new vision for policy in the Middle East to work with countries who are making democratic reforms.

(BEGIN VIDEO CLIP)

BUSH: The establishment of a free Iraq at the heart of the Middle East will be a watershed event in the global democratic revolution.

(END VIDEO CLIP)

MALVEAUX: The president specifically mentioned Iraq as well as Syria as obstructing democratic changes. He also called for Egypt and Saudi Arabia to do more - Wolf.

BLITZER: Suzanne Malveaux at the White House thanks Suzanne very much.

Three hundred eighty-four U.S. troops have lost their lives in the Iraq War. More than half have been killed since President Bush declared an end to major combat on May 1st. Intelligence on who is responsible for many of those deaths remains very, very murky at best.

Our National Security Correspondent David Ensor joining me now with more on this. What have you learned David?

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Wolf, as a senior intelligence official said just a day or two ago the evidence they have is fragmentary at best on who is attacking American soldiers and police. He says a major effort is underway now to fill in the gaps.

The official says: "We are reduced to making analytical inferences on this that are based on fragmentary intelligence" and that worries senior people over at the CIA because, as he put it, there is an insurgency in Iraq and it is growing.

U.S. officials say they're making inroads though, developing some Iraqi sources of information and using other kinds of surveillance techniques but the hostility of many Sunnis in Iraq in the central area is a real problem.

Robert Baer a former CIA officer and sometimes a critic of the agency is sympathetic on this one. He says this is a nearly impossible task for the CIA.

(BEGIN VIDEO CLIP) ROBERT BAER, FORMER CIA OFFICER: They have to be very careful and these are networks you don't build overnight in this sort of situation that's so violent. The CIA hasn't had enough time to set these networks up. They probably don't have enough linguists. They don't have enough people who are expert in Iraq. These things take years and years and years.

(END VIDEO CLIP)

ENSOR: U.S. officials say the attacks are coming from three basic directions, die-hard Ba'athists, radical Islamic terrorist supporters, of course many of them from outside Iraq, and old- fashioned Arab nationalists.

What they want to do most is to convince more of Iraq's 20 percent Sunni population that they do have a future in the new Iraq that they should turn in people they hear of who are trying to blow it up - Wolf.

BLITZER: Very interesting, David Ensor thanks very much for that report.

Two more American combat deaths to report in Iraq today, the U.S. Central Command says one soldier was killed, two others wounded when a patrol came under fire south of Baghdad. The military says another soldier was killed this morning when his truck hit a landmine near a crossing point on the Iraqi-Syrian border.

A Polish soldier died of a gunshot wound today after his convoy came under fire near Karbala. The army major was the first member of Poland's military contingent to be killed in action. Poland has deployed more than 2,000 troops in Iraq and leads a multinational force responsible for security in the south central part of the country.

U.S. troops went after suspected Iraqi insurgents overnight. They carried out three raids in the town of Baqubah north of Baghdad. A military spokesman says the troops arrested an alleged bomb maker and others believed to be involved in attacks on coalition forces.

We told you yesterday about Senator John McCain's toughly worded speech warning against an early exit strategy from Iraq and saying the United States does not right now have enough forces there to meet its objectives.

He suggested that Defense Secretary Rumsfeld was signaling that "the U.S. is more interested in leaving than we are in winning." That's a direct quote. Secretary Rumsfeld responded to that earlier today.

(BEGIN VIDEOTAPE)

RUMSFELD: Senator McCain is a senior member of the Armed Services Committee and has a distinguished military record and, needless to say, when he makes recommendations people think about them and consider and discuss them. We had discussions this morning on that very subject.

Just a minute - we talked to General Sanchez and he and General Abizaid have been meeting with all of the commanders and I do not - I have not been told of a single military commander in CENTCOM in Iraq who is recommending additional U.S. military forces.

(END VIDEO CLIP)

BLITZER: Senator McCain joining us now live from Capitol Hill. Senator McCain, thank you very much for joining us. I'm anxious to hear what you have to say to Secretary Rumsfeld.

SEN. JOHN MCCAIN (R), ARIZONA: Well, I have the greatest respect for Secretary Rumsfeld and I think he has an incredibly difficult job. I just have a very different view and that view to a degree was formed on my visit in August to Iraq where I talked to a lot of people too, including sergeant majors and junior officers who very candidly told me that they didn't have enough troops and they predicted that things would get worse, particularly in the Sunni Triangle.

Now, everybody is entitled to their opinion but the facts on t he ground are facts, the improvised explosive devices up, incidents up, woundings of American forces up, deaths tragically of American soldiers up.

General Sanchez stated the enemy's attacks are becoming "more sophisticated." There is no doubt that the problem is getting worse rather than better so to announce that we're going to reduce our troop forces sometime in the next few months to me is the wrong signal to send to the bad people that are doing terrible things.

We can win. We must win. And when I say more forces we need more Special Forces. We need more Marines. We need more counterintelligence. We need more linguists.

We don't need more tanks and artillery but we do need more people in the Sunni Triangle and things are going well in the north and the south and I'm very happy about that but things are getting worse by any objective indicators in the Sunni Triangle and that's why we need to get more troops in there.

BLITZER: Some have suggested, Senator McCain, that General Sanchez, General Abizaid, the commander of the Central Command that the top leadership they're afraid to ask for more troops because their superiors here in Washington don't want to hear that and politically they're under pressure not to ask. Do you believe that?

MCCAIN: I think they're all outstanding men who have served their country with distinction and honor. I have a very different view. I respect their view but I hope that they would have the opportunity to talk to some of the sergeant majors and the captains and the majors and lieutenant colonels and sometimes it's difficult to get exactly the opinion frankly that may differ with yours when you're a senior ranking officer.

But instead of maybe finding whose opinion you want look at the objective numbers. Over the last several months, as I predicted, things have gotten worse as far as deaths, wounding incidents, killings, lack of order, lack of security, kids not being - afraid to go to school in this part of Iraq, which is obviously very critical and that can spread.

And, I want to point out again, Wolf, time is not on our side and if we signal that we'll be leaving then obviously that would encourage the bad people. The Iraqi people are not interested in returning to Saddam Hussein but they are not sold on us either.

BLITZER: Senator McCain there are 100,000 U.S. troops, 130,000 excuse me U.S. troops in Iraq right now and many others in the region. How many more troops do you specifically think should be deployed to the Sunni Triangle?

MCCAIN: Look, it's around 10,000 to 15,000 additional in the Sunni Triangle but, remember, of the 130,000 that are there there's about 30,000 that are on patrol as we speak because of what we call the tooth-to-tail ratio.

And what we need is another 10,000 to 15,000 that could strictly be used in gathering intelligence, preemptive kinds of operations such as the ones that you just showed before I came on and intelligence and linguists that kind of specialties that go into what we used to call pacification.

BLITZER: You said specifically in your speech yesterday, and it was a very detailed, lengthy speech before the Council on Foreign Relations in New York that Iraq is not Vietnam and you speak with authority when it comes to Vietnam as all of our viewers know but you warned it could turn out to be like Vietnam under certain horrible circumstances. What are you driving at?

MCCAIN: I'm saying it's not Vietnam because in Vietnam we were facing a nationalist highly dedicated, well led effort that was supplied by superpowers in terrain that was the most difficult time. There's many areas where it is not the same as Vietnam.

I hate to draw, bring it up - I hate to keep bringing it up because the specter of it is somewhat frightening but if we don't tell the American people the truth as to what we face, which we didn't in Vietnam, then they will be disappointed. The Tet Offensive was a terrible defeat for the North Vietnamese, a great strategic psychological victory for them because of its impact on American public opinion.

Second of all, we don't want to send the signal that we will be leaving. I hope we can train Iraqi troops as quickly as possible but right now if you think half-trained Iraqi troops can do the job that Marines and highly-trained other military people can do that's just not I think an accurate depiction of what a very brief training period can do.

BLITZER: Retired General Wesley Clark, one of the Democratic presidential candidates, made a speech today and he was on CNN earlier this morning suggesting NATO should take over military responsibilities in Iraq and the United Nations should take over the overall political responsibility similar to what he says happened in the Balkans and Kosovo in Bosnia. Do you think that's a good idea?

MCCAIN: Well, I think what they're doing in Afghanistan is very laudable. We have a significant NATO presence there. I think the facts are that it's highly unlikely that we would get the kind of contribution that we would want.

Hopefully, we would get more support from many of our allies but one country can veto any decision by NATO and I would be astonished if the French would not veto a proposal for a NATO presence.

Of course we'd like to have more U.N. presence but because of the terrorist attacks the U.N. presence is going the other way, as is the Red Cross, as other humanitarian organizations, which is a very bad thing to see evolving.

BLITZER: Finally, Senator McCain, you heard David Ensor say that the U.S. intelligence community, the CIA basically, perplexed. They have murky information on who's responsible for all these attacks. What does that say about the U.S. intelligence community given the fact the United States and its coalition partners are all over Iraq right now?

MCCAIN: I say that it's an incredibly difficult challenge, one we should have recognized many months ago and started recruiting people and training them. But, look, if they're not sure we're going to be there, if they don't know that they have - that their futures are safe and secure then it's going to be impossible to get people to cooperate with them.

That's why we have to provide them with the security. We're trying to put the chicken before - the egg here before the chicken or vice versa, but I want to point out again, Wolf, we must win. We have to win and we have to do what's necessary.

The latest polling number on CNN is the American people think we did the right thing and they will support it but they need to be told what's necessary and we need to do what's necessary.

BLITZER: Very briefly, Senator McCain, how many years will U.S. forces be stationed in Iraq?

MCCAIN: That's directly related to the events of the next three to six months. It could be a relatively short time. It could be for a very long time. I'd remind you we've been in Korea for 40 years. We were in West Germany for 50 years. We're in Bosnia, Kosovo, Afghanistan.

The question is, is whether American young men and women will keep fighting and dying and for how long that will last and we'll know in the next three to six months.

BLITZER: Senator John McCain, thank you very much for joining us.

MCCAIN: Thank you.

BLITZER: Knowledge of 9/11, did Osama bin Laden order the assassination of an Afghan opposition leader because he knew too much? A CNN exclusive is coming up.

Tales of abuse, new details of former POW Jessica Lynch's time in captivity, captivity published with her consent.

And, a developing story we're following right now, Rosie O'Donnell takes the stand. She's testifying, in fact, right now. We're standing by to hear from her. She will be emerging from the courthouse. We'll go there live. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Side-swiped you're going to witness what knocked this state trooper off his feet, dramatic roadside scare, something all of us fear. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Last week we told you how for the first time al Qaeda is taking credit for the assassination of Ahmed Shah Massoud, the charismatic Afghan opposition leader who was killed two days before the 9/11 attacks. Now, a newly-revealed intelligence cable raises the possibility that Massoud died because he learned about the plot and tried to warn the west.

Our National Correspondent Mike Boettcher joining us now with a CNN exclusive - Mike.

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT: Well, Wolf, the timing of his assassination was striking and now those recently released documents from the Defense Intelligence Agency that were secret until about a month ago reveal a stunning reason why he was assassinated.

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): Was he the man who knew too much? When Northern Alliance leader Ahmed Shah Massoud spoke at the European parliament in early 2001, less than six months before the 9/11 attacks, he spoke about the threat that Osama bin Laden posed not only for Afghanistan but to the United States.

A newly declassified cable from the DIA, the U.S. Defense Intelligence Agency, raises the possibility that Massoud might have known that an al Qaeda plot was imminent.

According to the once secret document: "Through Northern Alliance intelligence efforts, Massoud gained limited knowledge regarding the intentions of Saudi millionaire Osama bin Laden to perform a terrorist act against the U.S. on a scale larger than the 1998 bombing of the U.S. embassies in Kenya and Tanzania."

Saji Gandhi of the National Security Archive got the November, 2001 cable released recently through the Freedom of Information Act.

SAJI GANDHI, NATIONAL SECURITY ARCHIVE: The document gives the impression that at least one of the reasons he was assassinated was, you know, his knowledge of this attack.

BOETTCHER: Massoud was assassinated two days before 9/11 by two North African men posing as journalists who hid a bomb inside their video camera. Massoud was a unifying figure in the fight against al Qaeda's Taliban patrons.

But the DIA cable said he was not a threat to bin Laden. An al Qaeda website just recently revealed that bin Laden personally ordered Massoud's assassination but was it because he was trying to warn the U.S. about an al Qaeda attack against America?

(END VIDEOTAPE)

BOETTCHER: Now, CNN has learned that the 9/11 Commission created by Congress is investigating this lead and, in fact, their staffers who recently traveled to Afghanistan were asking questions about the mystery of the assassination of Ahmed Massoud - Wolf.

BLITZER: Interesting, fascinating material, Mike Boettcher all over this story for us, thanks Mike very much.

BOETTCHER: You're welcome.

BLITZER: Unusual news on the job market that could impact those unemployment lines.

And the case against Scott Peterson, today new details about the early days of his wife Laci's disappearance. We'll go live to Modesto.

And, Martha Stewart in her own words and what's been the most painful part of her legal troubles, her comments that's coming up. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN.

Coming up later, going public, the former POW Jessica Lynch releasing new details about her time in Iraqi captivity, it's a shocking, shocking story. We'll get there, first though a quick check of the latest headlines.

(NEWSBREAK)

BLITZER: More economic news today smacking of recovery. Productivity is picking up and jobless claims are slowing down.

CNN's Kathleen Hays takes a look at the increasingly rosy employment picture.

(BEGIN VIDEOTAPE) KATHLEEN HAYS, CNNfn CORRESPONDENT (voice-over): Before the nation's dotcom workers lost their jobs and their fancy leases, before the United States lost its innocence on September 11 -- that's how far you have to go back to find a time when the number of people lining up at unemployment offices was as low as it was last week.

NED RILEY, STATE STREET GLOBAL ADVISORS: You couldn't get better news than we had this morning in terms of unemployment claims down. The key point on that one is continuing claims have dropped also, which is important to those that clearly had been unemployed and now can find a job.

HAYS: New claims for unemployment benefits trended gradually lower since April, but suddenly tumbled last week, falling 43,000 to 348,000, the lowest since January 2001. Wall Street hopes a big jobs report to be released on Friday will show that more companies actually started hiring workers in October.

But many say the tide is turning slowly.

CONRAD DEQUARDRDS, BEAR STEARNS: I don't think we're yet to the point where we can forecast very robust payroll gains maybe of around 150 or 200,000. That's That's the rate of payroll gains that you need to see the unemployment rate come down, and we don't believe that we're yet at that point.

HAYS: And even Fed Chief Alan Greenspan is hedging his bets.

ALAN GREENSPAN, CHAIRMAN, FEDERAL RESERVE: Although layoffs seem to be diminishing, surveys indicate that households continued to be worried about the condition of labor markets. The odds, however, do increasingly favor a revival in job creation.

HAYS (on camera): It's expected the economy created about 65,000 new jobs in October. That would be the second month of job increases in a row. Problem is, still not enough to bring down the unemployment rate, the most politically sensitive job number of all.

Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

BLITZER: Martha Stewart is breaking her silence on the stock scandal that could send her to jail. She's telling Barbara Walters of ABC News she didn't break any rules and the scandal has been the most difficult part of her life.

(BEGIN VIDEO CLIP)

BARBARA WALTERS, ABC NEWS: What's been the most painful part of all of this?

MARTHA STEWART, DEFENDANT: I think a delay in a good life, a hiatus in a really fine existence. At my age, there is no time for an unexpected, undesirable, unwanted hiatus. None. One that you can't really control. It's difficult. WALTERS: Especially for a lady who is used to control.

STEWART: Well, especially for a lady who has lots more to do.

WALTERS: Martha, it is possible that you could be sent to prison for up to 30 years. Are you scared?

STEWART: Who wouldn't be scared? Of course I'm scared. The last place I would ever want to go is to prison. And I don't think I will be going to prison though.

(END VIDEO CLIP)

BLITZER: Stewart faces charges she obstructed justice and lied to investigators about her sale of ImClone stock. The trial is scheduled to start in January.

Tales of abuse. New details revealed about former P.O.W. Jessica Lynch's time in Iraqi captivity.

And saluting the fallen in Iraq. An emotional ceremony honoring the soldiers, the 13 men, the two women, who were lost in that downed Chinook in Iraq.

And happening right now, Rosie O'Donnell testifying in court. She's taking the stand. We're standing by to hear from her once she emerges from the courtroom. We'll go there live.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: The story of Army Private Jessica Lynch captivated the country, from her ordeal as a prisoner of war in Iraq this spring to her dramatic rescue. But a new book written with her permission reportedly shows that few knew how violent and gruesome her ordeal really was.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The historical account, well-known but disputed. The personal account, now revealed and horrifying.

A new authorized biography of Jessica Lynch addresses whether the former Army private was raped while in the custody of her Iraqi captors. Reporters for "The New York Daily News" say they have read the book and that it contains references to medical records, which indicate Lynch was sodomized.

"The Daily News" lifts passages from the book titled "I Am a Soldier Too: The Jessica Lynch Story," written by former "New York Times" reporter Rick Bragg.

Quote -- "The records do not tell whether her captors assaulted her almost lifeless, broken body after she was lifted from the wreckage or if they assaulted her and then broke her bones into splinters until she was almost dead."

Another quote "The News" says is from the book indicates Lynch may not remember being raped. Quote -- "Jesse lost three hours. She lost them in the snapping bones, in the crash of the Humvee, in the torment her enemies inflicted on her after she was pulled from it."

Bragg reportedly writes, "Fill in the blanks of what Jesse lived through on the morning of March 23, 2003."

On that Sunday, Lynch was in a convoy of the U.S. Army's 507th Maintenance Company when the convoy got lost near the city of Nasiriyah and was ambushed by Iraqi fighters. Nine members of the unit were killed in the ambush and subsequent firefight. Lynch and four others were captured. Lynch was rescued April 1.

The book is not due for release until next Tuesday. We called the publisher, Knopf, to verify these quotes. They refused, but issued this statement: "The nature and extent of Jessica Lynch's injuries are documented in the book. They are but one chapter in a complete and vividly rendered story about a soldier and her family."

ABC is promoting an interview with Lynch and her parents to air next week. ABC says Lynch's parents told them they decided to include painful details in the book because they wanted to reflect what really happened to her and not tell only selective parts of her story.

According to ABC, the book reveals that Lynch's spinal injuries were so extensive she once believed she would be paralyzed for life

According to ABC, the book reveals that Lynch's spinal injuries were so extensive, she once believed she would be paralyzed for life and that one leg is so shattered, she can't walk on her own. Pentagon officials say the military is prohibited from discussing hospital records that would contain such details under the terms of a federal health information privacy law.

(END VIDEOTAPE)

BLITZER: Meanwhile, the Iraqi lawyer who says he tipped U.S. forces off about Lynch's exact location is publishing his own version of her story. That book, the basis for an upcoming TV movie.

Meanwhile, there was an emotional service in Iraq today for the victims of a weekend army helicopter crash. Hundreds of soldiers from the 3rd Armored Cavalry Regiment attended the ceremony honoring their comrades at an airbase west of Baghdad.

There was final roll call for the 15 men and women, and a 21-gun salute. Witnesses say a surface-to-air missile downed the chopper. The Pentagon has not announced an official cause.

Victims of a similar incident a generation ago and a world away also honored, remembered today. A repatriation ceremony was held at Arlington National Cemetery here in Washington for the remains of MIAs from the Vietnam War. Their helicopter was shot down over Cambodia back in 1971. And happening right now, Rosie O'Donnell testifying in a federal courtroom. The court has just suspended the session. We're going to go there live and get a detailed account exactly what happened. We'll go there right after this.

First though, a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Russian president Vladimir Putin in Rome meeting with leaders of the European Union. Among the topics on the agenda, the war in Chechnya and Russia's arrest of an oil tycoon. It's the last such meeting scheduled before eight former eastern block countries join the EU next year.

A boost for Boeing. China's official news agency reports at least three Chinese airlines are poised to buy as many as 30 planes from the American aviation giant.

The cruise ship Aurora, now back in Britain after a difficult voyage. A stomach virus hit about 500 passengers prompting Greece to refuse permission to dock. And Spain closed its border with Gibraltar when the ship made a call there.

In Argentina, a politician pelted with eggs. He was leaving a hearing where he testified about the disappearance of 14 people during the country's military rule. Emotions still run high over the so- called dirty war which saw thousands of political dissidents vanish.

A kite flying festival on Saddam Hussein's military parade grounds. 100 children took part many of them orphans. The festival was organized by the Iraqi Artists Association to show the world that, quote, "children can still play and be happy under these tough conditions."

And Paris's famed galleries Lafayette department store found a unique way to promote its new lingerie section. It's offering women free strip tease lessons taught by professional strippers.

And that's our look around the world.

(COMMERCIAL BREAK)

BLITZER: Rosie O'Donnell has just emerged from a courtroom. She's speaking with reporters. We can't really see her, but I believe we can hear her. Let's listen in.

(UNINTELLIGIBLE)

BLITZER: Looks like Rosie O'Donnell may have stopped to speak to reporters, but it doesn't look like she said anything, or at least not much. We may have missed a few words. We see her walking out just a few minutes ago from this courtroom.

There was apparently some very emotional testimony inside in this lawsuit she's filed against her former publisher, they filed a counter lawsuit against her. They're both talking about $100 million in damages separately. She's denying any wrongdoing. They're denying any wrongdoing. A serious dispute that led to the collapse of the magazine, "Rosie" magazine. Rosie winding up what clearly was an emotional day of testimony. We'll go back there live.

Our Mary Snow was inside the courtroom. We'll find out specific details, what exactly transpired. Let's take another quick break first.

(COMMERCIAL BREAK)

BLITZER: Welcome back. As you saw live here on CNN, Rosie O'Donnell just emerged from the courtroom after an emotional day of testimony in this lawsuit she has filed against her former publisher. They filed a counter lawsuit against her. CNN's Mary Snow is joining us now live from the courthouse in New York. Mary, you were inside that courtroom. Give us the gist, what exactly happened?

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, today was not so emotional. Rosie O'Donnell was called to the stand by her lawyers as their first witness, and it came late in the day. What was detailed today by Rosie O'Donnell was a business deal, and that business deal that went sour with the publisher in which she had a 50 percent stake.

The fight, the center of this battle, was over the hiring of Susan Tetfer (ph), formerly of "People" magazine. O'Donnell had said that her business manager came to her saying that she was considered, Michael Jordan as free agent. As a 50 percent partner in this venture she should think about hiring her.

She also said in terms of her contract that there were two clauses in that contract that Dan Brewster, the publisher, G&J, had told her about. One, that she couldn't make any changes in the last week running up to publication. Also that if she had anything crazy, so to speak, that he objected to, she could come up with other options.

Now, we've heard a lot about Rosie O'Donnell in the past couple of days. Today she seemed kind of nervous and answered the judge many times, referring to him as "sir" at certain points. The judge, who is really a no-nonsense judge, stepped in and told her to just please answer the questions and not editorialize her -- editorialize stopping her at various points for answering more than had been asked of her. But she was on the stand for about two hours and she is expected to resume her testimony tomorrow morning -- Wolf.

BLITZER: Any sense, Mary, how much long they are trial is going to go on?

SNOW: It should be about a week. Now that Rosie O'Donnell's lawyers are presenting their case, I talked to a lawyer yesterday, she said the actual number of witnesses still not 100 percent, depending on how this case goes and so probably about another week.

BLITZER: Rainy day in New York City. CNN's Mary Snow, thanks very much for that. Our legal analyst, Jeffrey Toobin, is on the phone joining us now.

A lot of our viewers may not be caught up in the legal details, precisely, what's happening in this courtroom. It's a deadly serious matter, Jeffrey. Give us the gist of who appears to have, at least right now, the upper hand, the publisher or Rosie O'Donnell?

JEFFREY TOOBIN, CNN LEGAL ANALYST: Well, what's particularly about this case is there is not clear there should and lawsuit at all. What happened here was Rosie O'Donnell and Gruner and Jahr which is a big a magazine company, did a joint venture to start the magazine. The magazine like many magazines went out of business. They're now suing each other, blaming each other for the failure. In fact, it seems like it might have been just a business failure like many business failures where no specific person is culpable but there just weren't enough people to buy or advertise in the magazine. But this one got very personal because Rosie O'Donnell quit because she felt there was too much interference by the Gruner and Jahr. The bitterness between the chief executive at Gruner and Jahr, and Rosie herself seems to be at the core of this rather than any business dispute.

She apparently was unhappy that the cover of the magazine, "Rosie" magazine, had what she called an unflattering picture of her between two other women, and she supposedly complained it made her look fat. But the new editor went a head and put it on the cover in any case.

Was there a question of who had final editorial say on these kinds of matters that's at the core of this dispute?

TOOBIN: That's certainly one of the issues at the core of this dispute, because Rosie O'Donnell had general supervision over the magazine, but day to day decisions were invested in people whom the Gruner and Jahr basically controlled. The issue of ultimate control and day to day control is a big one in this trial. Certainly, another big issue is Rosie O'Donnell's personality herself.

And I'll tell you, there was something that went on in that courtroom yesterday where an executive who worked for her, a cancer survivor, said that Rosie O'Donnell said to her, after some dispute about something that went on with the meeting, she said, you know what happens to people who lie? They get cancer and then they get it again if they keep lying. And this woman then said to Rosie, well, didn't your mother have cancer? And yes, Rosie said, she lied, that's why she got cancer. That kind of abusive treatment of employees is something that is certainly going to resonate badly with the judge, and Rosie is certainly very lucky that she's not in front of a jury, because that's the kind of thing a jury would find totally repelling.

BLITZER: Only a few minutes ago, Jeffrey, when she emerged from this courtroom after two hours of testimony, she made a brief comment. I want our viewers to listen to what Rosie O'Donnell said.

(BEGIN VIDEO CLIP)

ROSIE O'DONNELL, COMEDIAN: I think it's taking a toll on everyone, it all could have been avoided.

(CROSSTALK)

O'DONNELL: How did I feel? listen. I sat through the entire case. I was hoping for summary judgment. I will now wait until the end of the case and then I feel fairly certain that the judge will decide in our favor as the facts are very, very unclear.

(CROSSTALK)

(END VIDEO CLIP)

BLITZER: Summary judgment, Jeffrey Toobin, she's hoping for summary judgment. Tell our viewers what that means.

TOOBIN: Well, basically what she was saying is that she wanted the judge to say that the Grumner and Jahr's case was so weak that he didn't even have to hear from Rosie's side of the case. Apparently the judge did not do that. He's going to wait to hear from both sides and then render a decision. Remember, this is a nonjury case. But boy, Wolf, if there was ever a case that seemed to me to cry out for both sides to settle, rather than to leave this to the uncertainty of a judge, this seems like one of them. But it seems like the anger between the two sides is so great, that they are going to let this thing go to a judge.

BLITZER: It's -- you make a good point. But obviously emotions running very high between Rosie O'Donnell And Gruner and Jahr, her former publisher.

Jeffrey Toobin, thanks very much. We'll continue this follow this Rosie O'Donnell case tomorrow. We'll take a quick break. When we come back, we'll go live to Modesto, California. Very dramatic developments unfolding today in the Scott Peterson case. We'll have a complete summary of all those developments. Stay with us.

(COMMERCIAL BREAK)

BLITZER: A Modesto detective says police found a loaded handgun in Scott Peterson's pickup truck while investigating the disappearance of his wife, Laci. It's one of several surprises on this sixth day of Peterson's preliminary hearing. CNN's Mike Brooks joining us now live from Modesto. He is covering the case.

Mike, tell us what happened.

MIKE BROOKS, CNN CORRESPONDENT: It was day packed with information. A lot of things we hadn't heard before. As you said, one of the things they did find in the glove box of Scott Peterson's truck when they did a consent search was a handgun. Whether this handgun plays any role in the death of Laci Peterson, that remains unknown. We also heard from detective Albert Brocchini who basically has been testifying all day long. On direct testimony, he said when they were doing the initial walk-through of the house, Scott Peterson said the last time he saw Laci, when he left to go fishing, was -- that she was actually mopping the floor.

Now we heard testimony earlier in the preliminary hearing from the housekeeper who said that she had mopped the house the day before that on December 23rd. Some other testimony we heard today too, Wolf, that was amazing, the detective Brocchini. He said on December 30th, the tip line that had been set up for any information people had they could call, they received a call from a woman by the name of Amber Frey, it's a name very familiar to everyone since we've heard her statement to the press back a number of months ago that she had an affair with Scott Peterson. The police went down and interviewed her in person. The Detective Brocchini, said that Amber Frey told him that she had been seeing Scott since November, November 20. And that he had called her on December 25, 26, 27, 28. We also heard that he bought a car in San Diego right before he was arrested. It was a car he was arrested in. He bought it for $3,600 -- Wolf.

BLITZER: Mike, what's next, what do you expect to happen tomorrow?

BROOKS: Well, tomorrow there is no court. There is no court on Friday, no court Monday or Tuesday. We're expected to be back in court on Wednesday. We could be back with the Detective Brocchini if the cross examination has not been done. We're also expected to have a DNA rebuttal witness on Wednesday going back to that single strand of hair that they've been talking about for the last number of days -- Wolf.

BLITZER: Mike Brooks with the latest. Thanks very much.

And this just in to CNN. A spokesman for Governor-Elect Arnold Schwarzenegger of California saying that the governor-elect will hire an investigative firm to look into past allegations by several women that the actor and former body builder groped them. And investigation being ordered by Arnold Schwarzenegger. We'll have more on this story, that's coming up.

It was to close for comfort for a Utah highway patrol officer. Look at this shortly after officer Larry Orten (ph) this week, it was side swiped by a semitruck. The dash board camera on his cruiser caught it all on tape. The car was total and this driver was hurt, but Orten escaped injury.

That's all we have time for. "LOU DOBBS TONIGHT" starts right now.

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Major effort underway to find killers of U.S. troops in Iraq>


Aired November 6, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Happening now, Rosie O'Donnell is on the stand right inside this New York courthouse. We're standing by to hear directly from her once she emerges.
And, the Pentagon informs more than 100,000 U.S. troops and their families get ready for a year in Iraq.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Mission Iraq, the president gets his money.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: America has the resources and the will to see this war through to victory.

BLITZER: But does America have the troops?

Now, a major call-up amid major criticism, it's this U.S. Senator versus the defense secretary. I'll speak live with John McCain.

CNN exclusive, murder just before 9/11, could he have tipped off the United States?

And are these lines getting shorter, what you need to know about the job market.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, November 06, 2003.

BLITZER: Big announcements from the Bush administration today more money and more troops for the mission in Iraq. The president signed an $87.5 billion package most of it destined for the occupation and reconstruction of Iraq.

The Pentagon says 130,000 troops will be rotated out of Iraq early next year but almost as many will be sent into Iraq to replace them.

And, on a day when two more U.S. troops died in Iraq, a top U.S. intelligence official reveals the United States doesn't really know just who is behind the daily attacks.

We'll go live to CNN's Suzanne Malveaux, she's at the White House; to our National Security Correspondent David Ensor; but we begin with our Senior Pentagon Correspondent Jamie McIntyre with news of a revolving door for U.S. troops in Iraq - Jamie.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Wolf, with violence against American troops on the rise, is it possible that fewer troops is the answer? That's what the Pentagon says.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): Even as attacks on U.S. forces mount, the Pentagon is planning to send about 25,000 fewer troops to Iraq for the second year of U.S. occupation; however, the Pentagon argues the rotation plan provides a better mix of forces to battle insurgents.

DONALD RUMSFELD, DEFENSE SECRETARY: Numbers do not necessarily equate with capability. We're bringing in forces that are appropriate to deal with the evolving threats in Iraq today, including more mobile infantry elements.

MCINTYRE: Also, among the 85,000 fresh combat troops being alerted are three Army National Guard brigades built around the Army's new more nimble striker combat vehicles.

All together some 43,000 guard and reserve troops are getting the call, mostly Army, but Marines, Navy and Air Force units are also being tapped, some heading to Afghanistan. It's a strain on the citizen soldiers but unavoidable insists the Pentagon.

LT. GEN. NORTON SCHWARTZ, JOINT STAFF OPERATIONS DIRECTOR: Ladies and gentlemen, we are at war. This is not peacetime and so under the circumstances we find ourselves we are going to respond to the nation's call.

(END VIDEOTAPE)

MCINTYRE: Meanwhile, the Pentagon's estimate of the number of Iraqis providing security jumped by 3,000 in just a single day, 115,000 we told you yesterday, 118,000 today raising eyebrows about whether these numbers are inflated. The chairman of the Joint Chiefs says it's because of all the recruiting programs up and running and paying decent wages. They're getting a lot of Iraqis - Wolf.

BLITZER: Jamie, you're getting new information about the downing of that Chinook helicopter last Sunday in Iraq?

MCINTYRE: That's right, Wolf. Pentagon sources tell my colleague Barbara Starr that the indications are now that the helicopter did have a working system to try to divert heat-seeking missiles and apparently at least launched one flare according to an unconfirmed witness report.

They are still checking, investigating this to see what exactly happened but it does appear, this is the first indication the helicopter crew was able to take evasive maneuvers even though they were flying only 200 or 300 feet above the ground - Wolf.

BLITZER: And, Jamie, finally you had a remarkable story yesterday about a so-called forgotten soldier, an Iraqi who served with U.S. troops looking for a job now that he's back here in the United States seems to have been forgotten. What have you learned since that story aired yesterday?

MCINTYRE: Well, Wolf, apparently even as our story was airing the Pentagon was preparing to offer him a job and sources now tell me that Kadhim al-Waeli, a former free Iraqi fighter, an American born in Iraq, is going to be employed by the Department of Defense.

They won't tell us exactly what he's doing. It's apparently a dangerous assignment but he will be providing cultural and military advice to both U.S. and Iraqi troops.

BLITZER: CNN's Jamie McIntyre, thanks Jamie very much.

U.S. soldiers and support personnel on the home front are getting into the proper mindset now that Defense Secretary Rumsfeld has set the stage for a rotation early next year. Both troops and family members are taking the news in stride.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: He loves his job and he loves us but if he has to go, he has to go, and we'll deal with it.

UNIDENTIFIED MALE: They're like, you know, they want to do their job, looking forward to going out there and do their part. Morale is good.

UNIDENTIFIED FEMALE: As far as our unit and what we do is support with the Marines, it's always catch one as far as when they tell us to go we have to be ready to go.

(END VIDEO CLIP)

BLITZER: The new rotation scheduled to begin in January.

Here's your turn to weigh in on this story. Our web question of the day is this. "Does the United States have enough troops in Iraq?" You can vote right now. Go to cnn.com/wolf.

While you're there I'd 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 where you can read my daily online column, cnn.com/wolf.

President Bush today signed a measure providing more than $87 billion for Iraq and Afghanistan saying America now has the resources to achieve victory. Let's go live to our White House Correspondent Suzanne Malveaux - Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, it's $64 billion for military operations, $18 billion, more than $18 billion for Iraqi reconstruction.

The big victory here is that all of the reconstruction money is going to be in the form of grants, not loans, as the president wants. It merely guarantees he will not have to go back to Congress during an election campaign asking for more money.

Now, despite holes that show more than half Americans disagree with such a large amount, the president today argued this money shows that there is support for the U.S. mission inside Iraq. Earlier, the president outlined a broad new vision for policy in the Middle East to work with countries who are making democratic reforms.

(BEGIN VIDEO CLIP)

BUSH: The establishment of a free Iraq at the heart of the Middle East will be a watershed event in the global democratic revolution.

(END VIDEO CLIP)

MALVEAUX: The president specifically mentioned Iraq as well as Syria as obstructing democratic changes. He also called for Egypt and Saudi Arabia to do more - Wolf.

BLITZER: Suzanne Malveaux at the White House thanks Suzanne very much.

Three hundred eighty-four U.S. troops have lost their lives in the Iraq War. More than half have been killed since President Bush declared an end to major combat on May 1st. Intelligence on who is responsible for many of those deaths remains very, very murky at best.

Our National Security Correspondent David Ensor joining me now with more on this. What have you learned David?

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Wolf, as a senior intelligence official said just a day or two ago the evidence they have is fragmentary at best on who is attacking American soldiers and police. He says a major effort is underway now to fill in the gaps.

The official says: "We are reduced to making analytical inferences on this that are based on fragmentary intelligence" and that worries senior people over at the CIA because, as he put it, there is an insurgency in Iraq and it is growing.

U.S. officials say they're making inroads though, developing some Iraqi sources of information and using other kinds of surveillance techniques but the hostility of many Sunnis in Iraq in the central area is a real problem.

Robert Baer a former CIA officer and sometimes a critic of the agency is sympathetic on this one. He says this is a nearly impossible task for the CIA.

(BEGIN VIDEO CLIP) ROBERT BAER, FORMER CIA OFFICER: They have to be very careful and these are networks you don't build overnight in this sort of situation that's so violent. The CIA hasn't had enough time to set these networks up. They probably don't have enough linguists. They don't have enough people who are expert in Iraq. These things take years and years and years.

(END VIDEO CLIP)

ENSOR: U.S. officials say the attacks are coming from three basic directions, die-hard Ba'athists, radical Islamic terrorist supporters, of course many of them from outside Iraq, and old- fashioned Arab nationalists.

What they want to do most is to convince more of Iraq's 20 percent Sunni population that they do have a future in the new Iraq that they should turn in people they hear of who are trying to blow it up - Wolf.

BLITZER: Very interesting, David Ensor thanks very much for that report.

Two more American combat deaths to report in Iraq today, the U.S. Central Command says one soldier was killed, two others wounded when a patrol came under fire south of Baghdad. The military says another soldier was killed this morning when his truck hit a landmine near a crossing point on the Iraqi-Syrian border.

A Polish soldier died of a gunshot wound today after his convoy came under fire near Karbala. The army major was the first member of Poland's military contingent to be killed in action. Poland has deployed more than 2,000 troops in Iraq and leads a multinational force responsible for security in the south central part of the country.

U.S. troops went after suspected Iraqi insurgents overnight. They carried out three raids in the town of Baqubah north of Baghdad. A military spokesman says the troops arrested an alleged bomb maker and others believed to be involved in attacks on coalition forces.

We told you yesterday about Senator John McCain's toughly worded speech warning against an early exit strategy from Iraq and saying the United States does not right now have enough forces there to meet its objectives.

He suggested that Defense Secretary Rumsfeld was signaling that "the U.S. is more interested in leaving than we are in winning." That's a direct quote. Secretary Rumsfeld responded to that earlier today.

(BEGIN VIDEOTAPE)

RUMSFELD: Senator McCain is a senior member of the Armed Services Committee and has a distinguished military record and, needless to say, when he makes recommendations people think about them and consider and discuss them. We had discussions this morning on that very subject.

Just a minute - we talked to General Sanchez and he and General Abizaid have been meeting with all of the commanders and I do not - I have not been told of a single military commander in CENTCOM in Iraq who is recommending additional U.S. military forces.

(END VIDEO CLIP)

BLITZER: Senator McCain joining us now live from Capitol Hill. Senator McCain, thank you very much for joining us. I'm anxious to hear what you have to say to Secretary Rumsfeld.

SEN. JOHN MCCAIN (R), ARIZONA: Well, I have the greatest respect for Secretary Rumsfeld and I think he has an incredibly difficult job. I just have a very different view and that view to a degree was formed on my visit in August to Iraq where I talked to a lot of people too, including sergeant majors and junior officers who very candidly told me that they didn't have enough troops and they predicted that things would get worse, particularly in the Sunni Triangle.

Now, everybody is entitled to their opinion but the facts on t he ground are facts, the improvised explosive devices up, incidents up, woundings of American forces up, deaths tragically of American soldiers up.

General Sanchez stated the enemy's attacks are becoming "more sophisticated." There is no doubt that the problem is getting worse rather than better so to announce that we're going to reduce our troop forces sometime in the next few months to me is the wrong signal to send to the bad people that are doing terrible things.

We can win. We must win. And when I say more forces we need more Special Forces. We need more Marines. We need more counterintelligence. We need more linguists.

We don't need more tanks and artillery but we do need more people in the Sunni Triangle and things are going well in the north and the south and I'm very happy about that but things are getting worse by any objective indicators in the Sunni Triangle and that's why we need to get more troops in there.

BLITZER: Some have suggested, Senator McCain, that General Sanchez, General Abizaid, the commander of the Central Command that the top leadership they're afraid to ask for more troops because their superiors here in Washington don't want to hear that and politically they're under pressure not to ask. Do you believe that?

MCCAIN: I think they're all outstanding men who have served their country with distinction and honor. I have a very different view. I respect their view but I hope that they would have the opportunity to talk to some of the sergeant majors and the captains and the majors and lieutenant colonels and sometimes it's difficult to get exactly the opinion frankly that may differ with yours when you're a senior ranking officer.

But instead of maybe finding whose opinion you want look at the objective numbers. Over the last several months, as I predicted, things have gotten worse as far as deaths, wounding incidents, killings, lack of order, lack of security, kids not being - afraid to go to school in this part of Iraq, which is obviously very critical and that can spread.

And, I want to point out again, Wolf, time is not on our side and if we signal that we'll be leaving then obviously that would encourage the bad people. The Iraqi people are not interested in returning to Saddam Hussein but they are not sold on us either.

BLITZER: Senator McCain there are 100,000 U.S. troops, 130,000 excuse me U.S. troops in Iraq right now and many others in the region. How many more troops do you specifically think should be deployed to the Sunni Triangle?

MCCAIN: Look, it's around 10,000 to 15,000 additional in the Sunni Triangle but, remember, of the 130,000 that are there there's about 30,000 that are on patrol as we speak because of what we call the tooth-to-tail ratio.

And what we need is another 10,000 to 15,000 that could strictly be used in gathering intelligence, preemptive kinds of operations such as the ones that you just showed before I came on and intelligence and linguists that kind of specialties that go into what we used to call pacification.

BLITZER: You said specifically in your speech yesterday, and it was a very detailed, lengthy speech before the Council on Foreign Relations in New York that Iraq is not Vietnam and you speak with authority when it comes to Vietnam as all of our viewers know but you warned it could turn out to be like Vietnam under certain horrible circumstances. What are you driving at?

MCCAIN: I'm saying it's not Vietnam because in Vietnam we were facing a nationalist highly dedicated, well led effort that was supplied by superpowers in terrain that was the most difficult time. There's many areas where it is not the same as Vietnam.

I hate to draw, bring it up - I hate to keep bringing it up because the specter of it is somewhat frightening but if we don't tell the American people the truth as to what we face, which we didn't in Vietnam, then they will be disappointed. The Tet Offensive was a terrible defeat for the North Vietnamese, a great strategic psychological victory for them because of its impact on American public opinion.

Second of all, we don't want to send the signal that we will be leaving. I hope we can train Iraqi troops as quickly as possible but right now if you think half-trained Iraqi troops can do the job that Marines and highly-trained other military people can do that's just not I think an accurate depiction of what a very brief training period can do.

BLITZER: Retired General Wesley Clark, one of the Democratic presidential candidates, made a speech today and he was on CNN earlier this morning suggesting NATO should take over military responsibilities in Iraq and the United Nations should take over the overall political responsibility similar to what he says happened in the Balkans and Kosovo in Bosnia. Do you think that's a good idea?

MCCAIN: Well, I think what they're doing in Afghanistan is very laudable. We have a significant NATO presence there. I think the facts are that it's highly unlikely that we would get the kind of contribution that we would want.

Hopefully, we would get more support from many of our allies but one country can veto any decision by NATO and I would be astonished if the French would not veto a proposal for a NATO presence.

Of course we'd like to have more U.N. presence but because of the terrorist attacks the U.N. presence is going the other way, as is the Red Cross, as other humanitarian organizations, which is a very bad thing to see evolving.

BLITZER: Finally, Senator McCain, you heard David Ensor say that the U.S. intelligence community, the CIA basically, perplexed. They have murky information on who's responsible for all these attacks. What does that say about the U.S. intelligence community given the fact the United States and its coalition partners are all over Iraq right now?

MCCAIN: I say that it's an incredibly difficult challenge, one we should have recognized many months ago and started recruiting people and training them. But, look, if they're not sure we're going to be there, if they don't know that they have - that their futures are safe and secure then it's going to be impossible to get people to cooperate with them.

That's why we have to provide them with the security. We're trying to put the chicken before - the egg here before the chicken or vice versa, but I want to point out again, Wolf, we must win. We have to win and we have to do what's necessary.

The latest polling number on CNN is the American people think we did the right thing and they will support it but they need to be told what's necessary and we need to do what's necessary.

BLITZER: Very briefly, Senator McCain, how many years will U.S. forces be stationed in Iraq?

MCCAIN: That's directly related to the events of the next three to six months. It could be a relatively short time. It could be for a very long time. I'd remind you we've been in Korea for 40 years. We were in West Germany for 50 years. We're in Bosnia, Kosovo, Afghanistan.

The question is, is whether American young men and women will keep fighting and dying and for how long that will last and we'll know in the next three to six months.

BLITZER: Senator John McCain, thank you very much for joining us.

MCCAIN: Thank you.

BLITZER: Knowledge of 9/11, did Osama bin Laden order the assassination of an Afghan opposition leader because he knew too much? A CNN exclusive is coming up.

Tales of abuse, new details of former POW Jessica Lynch's time in captivity, captivity published with her consent.

And, a developing story we're following right now, Rosie O'Donnell takes the stand. She's testifying, in fact, right now. We're standing by to hear from her. She will be emerging from the courthouse. We'll go there live. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Side-swiped you're going to witness what knocked this state trooper off his feet, dramatic roadside scare, something all of us fear. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Last week we told you how for the first time al Qaeda is taking credit for the assassination of Ahmed Shah Massoud, the charismatic Afghan opposition leader who was killed two days before the 9/11 attacks. Now, a newly-revealed intelligence cable raises the possibility that Massoud died because he learned about the plot and tried to warn the west.

Our National Correspondent Mike Boettcher joining us now with a CNN exclusive - Mike.

MIKE BOETTCHER, CNN NATIONAL CORRESPONDENT: Well, Wolf, the timing of his assassination was striking and now those recently released documents from the Defense Intelligence Agency that were secret until about a month ago reveal a stunning reason why he was assassinated.

(BEGIN VIDEOTAPE)

BOETTCHER (voice-over): Was he the man who knew too much? When Northern Alliance leader Ahmed Shah Massoud spoke at the European parliament in early 2001, less than six months before the 9/11 attacks, he spoke about the threat that Osama bin Laden posed not only for Afghanistan but to the United States.

A newly declassified cable from the DIA, the U.S. Defense Intelligence Agency, raises the possibility that Massoud might have known that an al Qaeda plot was imminent.

According to the once secret document: "Through Northern Alliance intelligence efforts, Massoud gained limited knowledge regarding the intentions of Saudi millionaire Osama bin Laden to perform a terrorist act against the U.S. on a scale larger than the 1998 bombing of the U.S. embassies in Kenya and Tanzania."

Saji Gandhi of the National Security Archive got the November, 2001 cable released recently through the Freedom of Information Act.

SAJI GANDHI, NATIONAL SECURITY ARCHIVE: The document gives the impression that at least one of the reasons he was assassinated was, you know, his knowledge of this attack.

BOETTCHER: Massoud was assassinated two days before 9/11 by two North African men posing as journalists who hid a bomb inside their video camera. Massoud was a unifying figure in the fight against al Qaeda's Taliban patrons.

But the DIA cable said he was not a threat to bin Laden. An al Qaeda website just recently revealed that bin Laden personally ordered Massoud's assassination but was it because he was trying to warn the U.S. about an al Qaeda attack against America?

(END VIDEOTAPE)

BOETTCHER: Now, CNN has learned that the 9/11 Commission created by Congress is investigating this lead and, in fact, their staffers who recently traveled to Afghanistan were asking questions about the mystery of the assassination of Ahmed Massoud - Wolf.

BLITZER: Interesting, fascinating material, Mike Boettcher all over this story for us, thanks Mike very much.

BOETTCHER: You're welcome.

BLITZER: Unusual news on the job market that could impact those unemployment lines.

And the case against Scott Peterson, today new details about the early days of his wife Laci's disappearance. We'll go live to Modesto.

And, Martha Stewart in her own words and what's been the most painful part of her legal troubles, her comments that's coming up. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to CNN.

Coming up later, going public, the former POW Jessica Lynch releasing new details about her time in Iraqi captivity, it's a shocking, shocking story. We'll get there, first though a quick check of the latest headlines.

(NEWSBREAK)

BLITZER: More economic news today smacking of recovery. Productivity is picking up and jobless claims are slowing down.

CNN's Kathleen Hays takes a look at the increasingly rosy employment picture.

(BEGIN VIDEOTAPE) KATHLEEN HAYS, CNNfn CORRESPONDENT (voice-over): Before the nation's dotcom workers lost their jobs and their fancy leases, before the United States lost its innocence on September 11 -- that's how far you have to go back to find a time when the number of people lining up at unemployment offices was as low as it was last week.

NED RILEY, STATE STREET GLOBAL ADVISORS: You couldn't get better news than we had this morning in terms of unemployment claims down. The key point on that one is continuing claims have dropped also, which is important to those that clearly had been unemployed and now can find a job.

HAYS: New claims for unemployment benefits trended gradually lower since April, but suddenly tumbled last week, falling 43,000 to 348,000, the lowest since January 2001. Wall Street hopes a big jobs report to be released on Friday will show that more companies actually started hiring workers in October.

But many say the tide is turning slowly.

CONRAD DEQUARDRDS, BEAR STEARNS: I don't think we're yet to the point where we can forecast very robust payroll gains maybe of around 150 or 200,000. That's That's the rate of payroll gains that you need to see the unemployment rate come down, and we don't believe that we're yet at that point.

HAYS: And even Fed Chief Alan Greenspan is hedging his bets.

ALAN GREENSPAN, CHAIRMAN, FEDERAL RESERVE: Although layoffs seem to be diminishing, surveys indicate that households continued to be worried about the condition of labor markets. The odds, however, do increasingly favor a revival in job creation.

HAYS (on camera): It's expected the economy created about 65,000 new jobs in October. That would be the second month of job increases in a row. Problem is, still not enough to bring down the unemployment rate, the most politically sensitive job number of all.

Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

BLITZER: Martha Stewart is breaking her silence on the stock scandal that could send her to jail. She's telling Barbara Walters of ABC News she didn't break any rules and the scandal has been the most difficult part of her life.

(BEGIN VIDEO CLIP)

BARBARA WALTERS, ABC NEWS: What's been the most painful part of all of this?

MARTHA STEWART, DEFENDANT: I think a delay in a good life, a hiatus in a really fine existence. At my age, there is no time for an unexpected, undesirable, unwanted hiatus. None. One that you can't really control. It's difficult. WALTERS: Especially for a lady who is used to control.

STEWART: Well, especially for a lady who has lots more to do.

WALTERS: Martha, it is possible that you could be sent to prison for up to 30 years. Are you scared?

STEWART: Who wouldn't be scared? Of course I'm scared. The last place I would ever want to go is to prison. And I don't think I will be going to prison though.

(END VIDEO CLIP)

BLITZER: Stewart faces charges she obstructed justice and lied to investigators about her sale of ImClone stock. The trial is scheduled to start in January.

Tales of abuse. New details revealed about former P.O.W. Jessica Lynch's time in Iraqi captivity.

And saluting the fallen in Iraq. An emotional ceremony honoring the soldiers, the 13 men, the two women, who were lost in that downed Chinook in Iraq.

And happening right now, Rosie O'Donnell testifying in court. She's taking the stand. We're standing by to hear from her once she emerges from the courtroom. We'll go there live.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: The story of Army Private Jessica Lynch captivated the country, from her ordeal as a prisoner of war in Iraq this spring to her dramatic rescue. But a new book written with her permission reportedly shows that few knew how violent and gruesome her ordeal really was.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): The historical account, well-known but disputed. The personal account, now revealed and horrifying.

A new authorized biography of Jessica Lynch addresses whether the former Army private was raped while in the custody of her Iraqi captors. Reporters for "The New York Daily News" say they have read the book and that it contains references to medical records, which indicate Lynch was sodomized.

"The Daily News" lifts passages from the book titled "I Am a Soldier Too: The Jessica Lynch Story," written by former "New York Times" reporter Rick Bragg.

Quote -- "The records do not tell whether her captors assaulted her almost lifeless, broken body after she was lifted from the wreckage or if they assaulted her and then broke her bones into splinters until she was almost dead."

Another quote "The News" says is from the book indicates Lynch may not remember being raped. Quote -- "Jesse lost three hours. She lost them in the snapping bones, in the crash of the Humvee, in the torment her enemies inflicted on her after she was pulled from it."

Bragg reportedly writes, "Fill in the blanks of what Jesse lived through on the morning of March 23, 2003."

On that Sunday, Lynch was in a convoy of the U.S. Army's 507th Maintenance Company when the convoy got lost near the city of Nasiriyah and was ambushed by Iraqi fighters. Nine members of the unit were killed in the ambush and subsequent firefight. Lynch and four others were captured. Lynch was rescued April 1.

The book is not due for release until next Tuesday. We called the publisher, Knopf, to verify these quotes. They refused, but issued this statement: "The nature and extent of Jessica Lynch's injuries are documented in the book. They are but one chapter in a complete and vividly rendered story about a soldier and her family."

ABC is promoting an interview with Lynch and her parents to air next week. ABC says Lynch's parents told them they decided to include painful details in the book because they wanted to reflect what really happened to her and not tell only selective parts of her story.

According to ABC, the book reveals that Lynch's spinal injuries were so extensive she once believed she would be paralyzed for life

According to ABC, the book reveals that Lynch's spinal injuries were so extensive, she once believed she would be paralyzed for life and that one leg is so shattered, she can't walk on her own. Pentagon officials say the military is prohibited from discussing hospital records that would contain such details under the terms of a federal health information privacy law.

(END VIDEOTAPE)

BLITZER: Meanwhile, the Iraqi lawyer who says he tipped U.S. forces off about Lynch's exact location is publishing his own version of her story. That book, the basis for an upcoming TV movie.

Meanwhile, there was an emotional service in Iraq today for the victims of a weekend army helicopter crash. Hundreds of soldiers from the 3rd Armored Cavalry Regiment attended the ceremony honoring their comrades at an airbase west of Baghdad.

There was final roll call for the 15 men and women, and a 21-gun salute. Witnesses say a surface-to-air missile downed the chopper. The Pentagon has not announced an official cause.

Victims of a similar incident a generation ago and a world away also honored, remembered today. A repatriation ceremony was held at Arlington National Cemetery here in Washington for the remains of MIAs from the Vietnam War. Their helicopter was shot down over Cambodia back in 1971. And happening right now, Rosie O'Donnell testifying in a federal courtroom. The court has just suspended the session. We're going to go there live and get a detailed account exactly what happened. We'll go there right after this.

First though, a quick look at some other news making headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Russian president Vladimir Putin in Rome meeting with leaders of the European Union. Among the topics on the agenda, the war in Chechnya and Russia's arrest of an oil tycoon. It's the last such meeting scheduled before eight former eastern block countries join the EU next year.

A boost for Boeing. China's official news agency reports at least three Chinese airlines are poised to buy as many as 30 planes from the American aviation giant.

The cruise ship Aurora, now back in Britain after a difficult voyage. A stomach virus hit about 500 passengers prompting Greece to refuse permission to dock. And Spain closed its border with Gibraltar when the ship made a call there.

In Argentina, a politician pelted with eggs. He was leaving a hearing where he testified about the disappearance of 14 people during the country's military rule. Emotions still run high over the so- called dirty war which saw thousands of political dissidents vanish.

A kite flying festival on Saddam Hussein's military parade grounds. 100 children took part many of them orphans. The festival was organized by the Iraqi Artists Association to show the world that, quote, "children can still play and be happy under these tough conditions."

And Paris's famed galleries Lafayette department store found a unique way to promote its new lingerie section. It's offering women free strip tease lessons taught by professional strippers.

And that's our look around the world.

(COMMERCIAL BREAK)

BLITZER: Rosie O'Donnell has just emerged from a courtroom. She's speaking with reporters. We can't really see her, but I believe we can hear her. Let's listen in.

(UNINTELLIGIBLE)

BLITZER: Looks like Rosie O'Donnell may have stopped to speak to reporters, but it doesn't look like she said anything, or at least not much. We may have missed a few words. We see her walking out just a few minutes ago from this courtroom.

There was apparently some very emotional testimony inside in this lawsuit she's filed against her former publisher, they filed a counter lawsuit against her. They're both talking about $100 million in damages separately. She's denying any wrongdoing. They're denying any wrongdoing. A serious dispute that led to the collapse of the magazine, "Rosie" magazine. Rosie winding up what clearly was an emotional day of testimony. We'll go back there live.

Our Mary Snow was inside the courtroom. We'll find out specific details, what exactly transpired. Let's take another quick break first.

(COMMERCIAL BREAK)

BLITZER: Welcome back. As you saw live here on CNN, Rosie O'Donnell just emerged from the courtroom after an emotional day of testimony in this lawsuit she has filed against her former publisher. They filed a counter lawsuit against her. CNN's Mary Snow is joining us now live from the courthouse in New York. Mary, you were inside that courtroom. Give us the gist, what exactly happened?

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, today was not so emotional. Rosie O'Donnell was called to the stand by her lawyers as their first witness, and it came late in the day. What was detailed today by Rosie O'Donnell was a business deal, and that business deal that went sour with the publisher in which she had a 50 percent stake.

The fight, the center of this battle, was over the hiring of Susan Tetfer (ph), formerly of "People" magazine. O'Donnell had said that her business manager came to her saying that she was considered, Michael Jordan as free agent. As a 50 percent partner in this venture she should think about hiring her.

She also said in terms of her contract that there were two clauses in that contract that Dan Brewster, the publisher, G&J, had told her about. One, that she couldn't make any changes in the last week running up to publication. Also that if she had anything crazy, so to speak, that he objected to, she could come up with other options.

Now, we've heard a lot about Rosie O'Donnell in the past couple of days. Today she seemed kind of nervous and answered the judge many times, referring to him as "sir" at certain points. The judge, who is really a no-nonsense judge, stepped in and told her to just please answer the questions and not editorialize her -- editorialize stopping her at various points for answering more than had been asked of her. But she was on the stand for about two hours and she is expected to resume her testimony tomorrow morning -- Wolf.

BLITZER: Any sense, Mary, how much long they are trial is going to go on?

SNOW: It should be about a week. Now that Rosie O'Donnell's lawyers are presenting their case, I talked to a lawyer yesterday, she said the actual number of witnesses still not 100 percent, depending on how this case goes and so probably about another week.

BLITZER: Rainy day in New York City. CNN's Mary Snow, thanks very much for that. Our legal analyst, Jeffrey Toobin, is on the phone joining us now.

A lot of our viewers may not be caught up in the legal details, precisely, what's happening in this courtroom. It's a deadly serious matter, Jeffrey. Give us the gist of who appears to have, at least right now, the upper hand, the publisher or Rosie O'Donnell?

JEFFREY TOOBIN, CNN LEGAL ANALYST: Well, what's particularly about this case is there is not clear there should and lawsuit at all. What happened here was Rosie O'Donnell and Gruner and Jahr which is a big a magazine company, did a joint venture to start the magazine. The magazine like many magazines went out of business. They're now suing each other, blaming each other for the failure. In fact, it seems like it might have been just a business failure like many business failures where no specific person is culpable but there just weren't enough people to buy or advertise in the magazine. But this one got very personal because Rosie O'Donnell quit because she felt there was too much interference by the Gruner and Jahr. The bitterness between the chief executive at Gruner and Jahr, and Rosie herself seems to be at the core of this rather than any business dispute.

She apparently was unhappy that the cover of the magazine, "Rosie" magazine, had what she called an unflattering picture of her between two other women, and she supposedly complained it made her look fat. But the new editor went a head and put it on the cover in any case.

Was there a question of who had final editorial say on these kinds of matters that's at the core of this dispute?

TOOBIN: That's certainly one of the issues at the core of this dispute, because Rosie O'Donnell had general supervision over the magazine, but day to day decisions were invested in people whom the Gruner and Jahr basically controlled. The issue of ultimate control and day to day control is a big one in this trial. Certainly, another big issue is Rosie O'Donnell's personality herself.

And I'll tell you, there was something that went on in that courtroom yesterday where an executive who worked for her, a cancer survivor, said that Rosie O'Donnell said to her, after some dispute about something that went on with the meeting, she said, you know what happens to people who lie? They get cancer and then they get it again if they keep lying. And this woman then said to Rosie, well, didn't your mother have cancer? And yes, Rosie said, she lied, that's why she got cancer. That kind of abusive treatment of employees is something that is certainly going to resonate badly with the judge, and Rosie is certainly very lucky that she's not in front of a jury, because that's the kind of thing a jury would find totally repelling.

BLITZER: Only a few minutes ago, Jeffrey, when she emerged from this courtroom after two hours of testimony, she made a brief comment. I want our viewers to listen to what Rosie O'Donnell said.

(BEGIN VIDEO CLIP)

ROSIE O'DONNELL, COMEDIAN: I think it's taking a toll on everyone, it all could have been avoided.

(CROSSTALK)

O'DONNELL: How did I feel? listen. I sat through the entire case. I was hoping for summary judgment. I will now wait until the end of the case and then I feel fairly certain that the judge will decide in our favor as the facts are very, very unclear.

(CROSSTALK)

(END VIDEO CLIP)

BLITZER: Summary judgment, Jeffrey Toobin, she's hoping for summary judgment. Tell our viewers what that means.

TOOBIN: Well, basically what she was saying is that she wanted the judge to say that the Grumner and Jahr's case was so weak that he didn't even have to hear from Rosie's side of the case. Apparently the judge did not do that. He's going to wait to hear from both sides and then render a decision. Remember, this is a nonjury case. But boy, Wolf, if there was ever a case that seemed to me to cry out for both sides to settle, rather than to leave this to the uncertainty of a judge, this seems like one of them. But it seems like the anger between the two sides is so great, that they are going to let this thing go to a judge.

BLITZER: It's -- you make a good point. But obviously emotions running very high between Rosie O'Donnell And Gruner and Jahr, her former publisher.

Jeffrey Toobin, thanks very much. We'll continue this follow this Rosie O'Donnell case tomorrow. We'll take a quick break. When we come back, we'll go live to Modesto, California. Very dramatic developments unfolding today in the Scott Peterson case. We'll have a complete summary of all those developments. Stay with us.

(COMMERCIAL BREAK)

BLITZER: A Modesto detective says police found a loaded handgun in Scott Peterson's pickup truck while investigating the disappearance of his wife, Laci. It's one of several surprises on this sixth day of Peterson's preliminary hearing. CNN's Mike Brooks joining us now live from Modesto. He is covering the case.

Mike, tell us what happened.

MIKE BROOKS, CNN CORRESPONDENT: It was day packed with information. A lot of things we hadn't heard before. As you said, one of the things they did find in the glove box of Scott Peterson's truck when they did a consent search was a handgun. Whether this handgun plays any role in the death of Laci Peterson, that remains unknown. We also heard from detective Albert Brocchini who basically has been testifying all day long. On direct testimony, he said when they were doing the initial walk-through of the house, Scott Peterson said the last time he saw Laci, when he left to go fishing, was -- that she was actually mopping the floor.

Now we heard testimony earlier in the preliminary hearing from the housekeeper who said that she had mopped the house the day before that on December 23rd. Some other testimony we heard today too, Wolf, that was amazing, the detective Brocchini. He said on December 30th, the tip line that had been set up for any information people had they could call, they received a call from a woman by the name of Amber Frey, it's a name very familiar to everyone since we've heard her statement to the press back a number of months ago that she had an affair with Scott Peterson. The police went down and interviewed her in person. The Detective Brocchini, said that Amber Frey told him that she had been seeing Scott since November, November 20. And that he had called her on December 25, 26, 27, 28. We also heard that he bought a car in San Diego right before he was arrested. It was a car he was arrested in. He bought it for $3,600 -- Wolf.

BLITZER: Mike, what's next, what do you expect to happen tomorrow?

BROOKS: Well, tomorrow there is no court. There is no court on Friday, no court Monday or Tuesday. We're expected to be back in court on Wednesday. We could be back with the Detective Brocchini if the cross examination has not been done. We're also expected to have a DNA rebuttal witness on Wednesday going back to that single strand of hair that they've been talking about for the last number of days -- Wolf.

BLITZER: Mike Brooks with the latest. Thanks very much.

And this just in to CNN. A spokesman for Governor-Elect Arnold Schwarzenegger of California saying that the governor-elect will hire an investigative firm to look into past allegations by several women that the actor and former body builder groped them. And investigation being ordered by Arnold Schwarzenegger. We'll have more on this story, that's coming up.

It was to close for comfort for a Utah highway patrol officer. Look at this shortly after officer Larry Orten (ph) this week, it was side swiped by a semitruck. The dash board camera on his cruiser caught it all on tape. The car was total and this driver was hurt, but Orten escaped injury.

That's all we have time for. "LOU DOBBS TONIGHT" starts right now.

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Major effort underway to find killers of U.S. troops in Iraq>