Return to Transcripts main page

CNN Wolf Blitzer Reports

Explosions Heard in Baghdad; Sniper Gets Life in Prison; Code Orange Has Leaders Worried

Aired December 23, 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, HOST: Happening right now: break news. Mortar fire explosions heard in Baghdad. You're looking at these pictures. A southern neighborhood of Baghdad rocked by gunfire. Happening right now. We're standing by for details.
Also happening now, he took part in the Washington area sniper killings. But the jury spares the life of 18-year-old Lee Boyd Malvo.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): This time, it's very real.

DONALD RUMSFELD, SECRETARY OF DEFENSE: Is it serious? Yes, you bet your life.

BLITZER: High alert in the cities and in the heartland Americans prepare for the unknown and the unthinkable. We'll hear from Los Angeles police chief William Bratton.

WILLIAM BRATTON, LAPD CHIEF: This is the most significant level of concern we've had.

BLITZER: Al Qaeda come back. Is bin Laden's network ready to strike again?

After shock.

GOV. ARNOLD SCHWARZENEGGER, CALIFORNIA: We've already begun the task of recovering and rebuilding.

BLITZER: A California town digs out from a deadly quake but counts its blessings.

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, December 23, 2003.

(END VIDEOTAPE)

BLITZER: First up, gunfire and at least a half a dozen explosions heard in Baghdad only within the past few minutes.

Let's immediately go to CNN's Rym Brahimi. She's in the Iraqi capital.

Rym, tell us what you're hearing and seeing.

RYM BRAHIMI, CNN CORRESPONDENT: Wolf, it just started about half an hour ago. We could hear basically huge booms and explosions that sounded quite distant. But you could still feel them very clearly in the office of the Palestine Hotel where we're based.

It seems to me that there was the sound of C-130s, propeller planes, gun ships. It could have been helicopter gun ships. But you couldn't actually see anything. You could just hear the thud of the explosions, their impact, being thrown on the ground here.

Now it does sound to me like this was the heaviest firefight, certainly, in several months. And the context is still very uncertain, Wolf.

It appears that, of course, as you know, there's been this increased threat around the Christmas holiday. And Baghdad was no exception. We know that there were reports from intelligence that there was a potential increased threat here in Baghdad. And so it could possibly be that this is either a response or a preemptive strike.

But again, we can't confirm that for the time being. All we know is that in the past half hour there have been huge -- there's been a lot of noise, noise of explosions, gun ships, the sound of rattling guns and firefight in one of the areas of Baghdad -- Wolf.

BLITZER: We're told from the U.S. military, Rym, this is part of Operation Iron Justice, a U.S. military operation designed on the basis of intelligence coming in to deal with potential threats from insurgents in Baghdad.

More on the way, as you point out, presumably around this holiday season. Have there been other discernible changes, U.S. military changes on the ground in Baghdad over the past few hours?

BRAHIMI: Not that we know of over the past few hours, nothing that distinct or that clear. I mean, this is certainly the biggest action that we have seen so far in the Iraqi capitol, again, in several months.

But as you know, since the capture of the former Iraqi president, Saddam Hussein, there has been an intensification of the number of raids and the operations that have been launched by U.S. forces, particularly in the so-called Sunni Triangle, around Kamara (ph), around Baquba in the west around Fallujah and a place called Walla (ph), where they launched Operation Rifles Fury a couple of days ago.

So definitely this could be, you know, part of this whole sweep of the area that has followed the capture of Saddam Hussein -- Wolf.

BLITZER: CNN's Rym Brahimi. Rym, please stand by, and we'll get back to you as information continues to come in. Explosions heard in Baghdad, only within the past half hour or so.

Let's move on, though, to another breaking story we're following right now.

A jury has decided to spare the life of convicted teenage sniper Lee Boyd Malvo. Within the past hour, the panel returned a sentence of life without parole for terrorism and life without parole for the capital murder of FBI analyst Linda Franklin.

CNN's Elaine Quijano is just outside the courthouse in Chesapeake, Virginia. She was inside while the sentence was being read.

Elaine, give our viewers the latest.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Wolf.

This jury took eight and a half hours over two days to reach this decision of life without the possibility of parole for Lee Malvo.

Prosecutors in this case had urged the jury that they needed justice for the victims. Instead, they we want with what the defense had requested, and that was mercy for Lee Malvo.

Now, afterwards, victims' family members sat with silence in the courtroom. Lee Malvo himself did not have any other reaction other than to look down. He blinked several times.

His attorney, Craig Cooley, who sat to his right, sat with his head bowed. And as each count was read, his head went lower and lower.

The jury, meanwhile, did not look at Lee Malvo. The members that I saw, some of them appeared to be wiping away tears from their eyes. It's interesting to note, the foreman of this jury is a minister.

The prosecutor, Robert Horan, did not want to appear on cameras, but he said he has a theory. Afterwards, he said, whatever you do, don't try one on Christmas week. He says that he's sure that it played a part.

So again, the verdict from these jurors, life in prison without parole for Lee Malvo -- Wolf.

BLITZER: All right. John Allen Muhammad got the death sentence in the earlier trial. Elaine Quijano, reporting from Chesapeake, Virginia. We'll be getting back to you later this hour, as well.

In another important story we're following, America on alert. And authorities admit they are, indeed, very worried right now.

he concern that put the nation at Code Orange centers around some sort of extraordinary attack with aircraft potentially seen as the most likely weapon. Security has already been beefed up at airports and on the borders, in the cities and around national landmarks.

The military is being called in, but the Pentagon is preparing for its own worst-case scenario. Standing by live, CNN's Mike Brooks. He's in Atlanta. CNN's Barbara Starr, she's over at the Pentagon. And our military analyst, Peter Bergen, he's here in Washington.

But we begin with urgent -- yes urgent efforts right now by authorities to stay one step ahead of al Qaeda.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): A spectacular terror attack using weapons of mass destruction, that's a very real fear senior U.A. officials have, a fear that prompted them to raise the nation's threat level from yellow to orange during this holiday season.

U.S. officials say they don't know whether al Qaeda or a related terror group actually has such a capability. But they tell CNN the U.S. government has intercepted communications from people described as terrorist supporters who are discussing precisely that.

We know they are trying real hard to get it, a top U.S. official says.

But perhaps an even bigger fear centers on another 9/11 type use of aircraft, to launch a terror strike somewhere in the United States.

Four major cities of concern: New York and Washington, which were targeted on 9/11; Los Angeles, especially its international airport, which was targeted around the millennium; and Las Vegas, where several of the 9/11 hijackers spent a significant amount of time in the weeks and months leading up to the strike.

A U.S. official says the decision to go to threat level orange was based on information considerably more ominous that that which triggered the four previous heightened alerts.

UNIDENTIFIED MALE: We've had a reminder just within the last 24 hours that the United States still faces serious threats. We've seen the threat level escalated to level orange. We've done that because we've seen some reporting that leads us to believe it's necessary.

BLITZER: It was not an easily made decision. The cost of the higher alert? A huge strain on local state, and federal law enforcement resources and hundreds of millions of dollars in extra expense.

U.S. official say they were also wary of going to the higher level because of what they call alert fatigue: in effect, crying wolf too often so people stop paying attention.

"Nobody wanted to do this," one source said, "but when presented with the intelligence, we had no choice."

he intelligence comes, U.S. government sources say, from what's called chatter, the electronically intercepted conversations, from human intelligence planted near terror suspects, from overseas intelligence agencies and from terror detainees, who are constantly being interrogated.

An interesting detail, one official made clear that the latest alarming information did not originate with al Qaeda detainees.

(END VIDEOTAPE)

BLITZER: And officials say the most likely means of attack would be from the skies. And while the biggest cities offer the biggest concerns, authorities are, in fact, looking at other possible targets, as well.

Let's go live to correspondent Mike Brooks. He's at the CNN Center in Atlanta.

What are you hearing, Mike?

MIKE BROOKS, CNN CORRESPONDENT: Good evening, Wolf.

Besides D.C., New York, L.A. And Las Vegas, intelligence has been received about San Francisco and the tidewater area of Virginia to include Norfolk, home to the U.S. Navy's 2nd Fleet as potential targets.

The State Department, Department of Homeland Security and other governmental agencies are reaching out to foreign governments and to international airlines to advice them of U.S. concerns and are urging them to enhance security.

Several sources indicate there is particular concern about flights originating in Mexico and France. Currently, international pilots flying in and out of the U.S. are licensed by the FAA and the Transportation Security Administration conducts background check on these pilots -- Wolf.

BLITZER: What about international airlines, Mike? Some of them, as we know, don't yet have those fortified cockpit doors that the U.S. government is demanding.

BROOKS: Most of the international flights -- in fact, all of the international airlines, the aircraft themselves, are supposed to have those reinforced cockpit doors.

Many of the international airlines, Wolf, are associated with U.S. carriers. For instance, Delta Airlines is teamed up with a number of other international airlines as part of their sky team. They meet regularly to make sure that their security is beefed up and it comes in line with the U.S. security of, let's say, Delta and some of the other major carriers. But they are -- they talk on a regular bases and they want to make sure that they're in step with the international airlines -- Wolf.

BLITZER: CNN's Mike Brooks reporting from Atlanta. Thanks, Mike, very much.

Let's go over to the Pentagon now, where senior officials drilled for the worst-case scenario today, even as they stepped up their own planning to protect American cities.

Our correspondent there, Barbara Starr, is standing by with the latest -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Indeed, Wolf, here at the Pentagon, Defense Secretary Donald Rumsfeld for the first time today speaking publicly about the impact on the nation of going to Code Orange and just how serious it all is.

(BEGIN VIDEO CLIP)

RUMSFELD: It costs money, and it causes stress on military and civilian at all levels of government. Therefore, you do not do it lately. You ask, is it serious? Yes. You bet your life.

(END VIDEO CLIP)

STARR: Military officials also telling Americans today what they may see around the country during the holiday season.

(BEGIN VIDEO CLIP)

RICHARD MYERS, JOINT CHIEFS CHAIRMAN: They may see additional air patrols over select cities and facilities, an increase in the air defense posture here in Washington, D.C., and combat aircraft could be put on a higher alert at different air bases throughout the country.

(END VIDEO CLIP)

STARR: So, Wolf, all of the pieces in place in case the unthinkable happens -- Wolf.

BLITZER: CNN's Barbara Starr at the Pentagon. Barbara, thank you very much.

Sources say U.S. intelligence officials have received warnings that al Qaeda planning attacks against U.S. interests in Saudi Arab, Bahrain, Yemen, and Kenya.

CNN's Jennifer Coggiola has details.

(BEGIN VIDEOTAPE)

RICHARD BOUCHER, STATE DEPARTMENT STATEMENTS: There is worldwide danger for Americans and westerners. There has been more specific cautions issued with regard to the Arabian Gulf and Arabian Peninsula.

JENNIFER COGGIOLA, CNN CORRESPONDENT (voice-over): There's no word on a specific target. But warnings are going out to Americans.

A senior State Department source tells CNN there is a general threat of al Qaeda attacks against U.S. interests in Saudi Arabia, Bahrain, Yemen and Kenya. All four continents have been sites of previous attacks.

The U.S. embassy in Kenya was bombed in 1998. Yemen was the site of the attack three years ago that killed 17 crewmembers aboard the USS Cole.

Nineteen Americans were killed in the 1996 bombing of the Khobar Towers in Saudi Arabia. And there were a pair of bombings at presidential compounds in Riyadh, Saudi Arabia, this year.

Last week the State Department urged Americans to defer travel to Saudi Arabia and it authorized nonessential U.S. diplomatic workers, families, officials to leave the country.

Today, the U.S. embassy in Manama (ph) warned Americans about a possible terror attack in Bahrain during the holidays.

BOUCHER: We're seeking more information about the threat, but the embassy felt it was prudent to put out a general announcement to the American community in Bahrain, since that's where the threat is centered..

Reporter: Jennifer Coggiola, CNN, Washington.

BLITZER: And here's your chance to weigh in on this important story. Our Web question of the day is this: "Is Code Orange worth the estimated $1 billion a week in additional security costs?"

You can vote yes or no. Go to CNN dot comb/Wolf. We'll have the results later in this broadcast.

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

Al Qaeda's abilities. What kind of terror is the group capable of carrying out right now? An in-depth look at the state of their operations.

Plus, taking action. Law enforcement agencies in cities across the U.S. taking serious measures to combat terrorism. We'll hear from the LAPD police chief.

And we're monitoring Baghdad right now. Explosions heard only within the past half hour or so. Part of a U.S. military operation unfolding. We'll have more details. Stay with us.

(COMMERCIAL BREAK)

BLITZER: On alert and taking action: why this heightened terror alert is different from previous ones. New revelations from the police chief of one major U.S. city.

That and much more. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We're getting this information in from the Reuters news agency. Reuters reporting, quoting a U.S. industry source as saying that Mad Cow Disease has been found in Washington State. It would be the first, the first incidence of this disease in the United States. There was an outbreak of it in Canada, as many of our viewers will recall.

The official, who asked not to be identified, said she was unsure of how many cases were found. We are also learning that the secretary of agriculture, Ann Veneman, will be holding a news conference here in Washington shortly, presumably to talk about this.

We have no official confirmation. We'll stand by for details and get some details from Ann Veneman when she comes to the microphones here in Washington.

But the Reuters news agency, a report that we at CNN have not confirmed, only attributing it to Reuters. Reuters reporting that Mad Cow Disease has been found in Washington State, a U.S. industry official says.

We'll get some more information on this important story and bring it you to, our viewers. We'll also stand by to hear from the agriculture secretary, Ann Veneman.

In the meantime, a nonspecific threat against unidentified targets from an unknown enemy. Well, maybe not so unknown.

Officials continue to point to al Qaeda as the most likely source of any attack. That raises the question, what's the state of al Qaeda right now?

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Their training bases in Afghanistan were smashed, along with much of the leadership's ability to command and control operations. But experts believe al Qaeda supporters now spread around the world no longer need their leaders to run operations.

KEN ROBINSON, CNN NATIONAL SECURITY ANALYST: One of the greatest fears is that it's irrelevant at this point whether bin Laden is captured or not. These forces that are deployed around the world could possibly be taking their cues from local leaders at this time.

BLITZER: Coalition intelligence sources believe we're seeing some of that al Qaeda linked activity in Iraq.

And in the work of this man. Abu Marsad Zarkawahi (ph), a Jordanian who once pledged a loyalty oath to bin Laden and who operates his own terror network, Ansar al-Islam.

Considered by Middle East intelligence analysts to be the most dangerous man in the region, he is believed to have had a role in planning recent suicide bombings in Istanbul.

Where else can we see al Qaeda's hand? Pakistani officials believe in this month's assassination attempt on the Pakistani President Pervez Musharraf. U.S. authorities have arrested some of the highest ranking operatives, like Khalid Sheik Mohammed and Abu Zubaydah. But still at large, the al Qaeda's No. 1, bin Laden, and No. 2, Ayman al-Zawahiri, who released an videotape only last Friday.

The key question, can they pull off another 9/11 style attack? One worrisome thought, that the attacks and suicide bombings in Iraq and Afghanistan are just target practice.

TONY VILLA, TERRORISM EXPERT: That they're using these as proving grounds to bring -- to refine their tactics, to bring that to the United States.

(END VIDEOTAPE)

BLITZER: So is al Qaeda capable of carrying out a spectacular new attack against the United States? Can the orange threat alert help prevent it?

Let's turn to someone with some first-hand knowledge of the bin Laden network, CNN's own terrorism analyst, Peter Bergen.

So Peter, what do you think? Is al Qaeda in any position right now to carry out a spectacular 9/11 type attack?

PETER BERGEN, CNN TERRORISM ANALYST: That's very tough to answer. And if you asked me that on September 10, 2001, I would have said that's ridiculous, even though we knew at the time that there was indications that al Qaeda was planning a spectacular attack somewhere in the world.

On September 10, 2001, I would have said it's impossible they could have carried out something in this country.

Obviously, I think that they have been damaged, as your piece pointed out. But they are patient. After all, it took them three years to plan 9/11, maybe five years. It took them five years to plan the embassy bombing attack in Africa.

So the United States remains al Qaeda's primary targets, as somebody in your piece just mentioned. These attacks in Istanbul, Saudi Arabia, Iraq, may just be sort of warming up for the big one. Because obviously, they are still waiting to do the big one.

BLITZER: They want to declare to the world, we are here. We're still very much a threat to the United States.

BERGEN: I think, also, you've got to be very concerned about London right now. The English are being -- I think the level of worry there is higher than it's ever been since 9/11.

I think also you've got to be concerned about Israel. After all, these are both primary targets of al Qaeda.

If you think back to the millennium, which you mentioned in your piece earlier, the planned attack of the Los Angeles International Airport, which was fortunately averted. There was also a plan to attack tourist sites in Jordan and also border posts along the Israeli/Jordan border.

So, you know, all these places are possible. Where the next attack will be, who knows. But I think we can safely say that there's been a strong uptick, not only in concern but also in attacks. You think four attacks in Istanbul within the space of a week. Another devastating attack in Riyadh just six weeks. Another devastating attack in Iraq, suicide attacks in the past week.

So I think obviously there is -- there's real concern. Will they be able to pull it over in the United States? If you ask, I think tomorrow? No. Next week? No. Sometime in the next five years, almost certainly. Where and when, I don't know.

BLITZER: I have spoken in the past few days, including today, with multiple U.S. sources, high level officials who are very much in the loop. And they say this alert, going to orange this time was much more ominous than the four previous times. The information, the intelligence that was coming in was just so worrisome, even if it couldn't be completely confirmed.

BERGEN: Yes. Clearly, there would be reluctance to just do these alerts, because of the reluctance that you mentioned. But when you're talking about an attack on the scale of 9/11, when government officials are saying that, clearly this is a whole different order of magnitude of concern.

BLITZER: In the scheme of things, would this going to the higher alert deter al Qaeda? If there was a plan in the works the next few days, but then they see the United States going on this high state of alert, do you think that would necessarily tell these guys, you know what? Pull back.

BERGEN: I don't think these people are deterrable. After all, they're willing to commit suicide in these attacks.

However, you know, it might not deter them, but it might actually avert the attack, which is a whole separate issue. Obviously, if there was an orange alert on September 10, 2001, we would be in a whole different ball game.

BLITZER: When we talk about al Qaeda, the theory -- the assumption is Osama bin Laden, he's still running the show. Butt his is a loosely coordinated network out there. And even if he were to disappear, this network would still continue to pose a formidable threat.

BERGEN: I agree with you totally, Wolf. I think al Qaeda, the organization, still exists but has been damaged. But al Qaeda has morphed into a mass movement, not a movement as large as communism or Nazism or fascism or as dangerous. But however, a movement that will remain our major national security threat for perhaps a decade or more.

BLITZER: The two biggest concerns I've heard about, one involving aircraft, another involving weapons of mass destruction. But even though they presumably have been trying to get WMD, whether nuclear, chemical, or biological, and if they had it there's no doubt, according to U.S. officials, they would use it.

Do you have any reason to believe they've already developed that capability, that they have some sort of crude WMD device?

BERGEN: Certainly they developed crude ricin, which is an assassination type. Certainly, radiological bombs are within their capabilities. Bin Laden himself has said we're prepared to deploy these weapons.

In fact, just last Christmas a whole set of people were arrested in Europe, in London, in Spain and Italy with crude chemical weapons. So we definitely -- Not only have they developed these things, they've actually tried to deploy them. And they will certainly try and deploy them in the future.

Will they kill a lot of people ? Probably not. They will be weapons of mass disruption, rather than weapons of mass destruction. However, just look at the anthrax attacks, which killed five people and had a huge amount of impact.

BLITZER: One final question. I've heard some counter terrorism analysts suggest that at least in the short term, the arrest, the capture of Saddam Hussein, the humiliation, looking at him the way he does, that that may have inspired some of these al Qaeda operatives to go out and seek revenge, even though there was not necessarily any great relationship between Saddam Hussein and al Qaeda?

BERGEN: Capturing Saddam was a great victory for the Iraqi people and the coalition forces in Iraq. It's affect on the wider war on terrorism I think will be absolutely negligible.

BLITZER: That's that. Peter Bergen, as usual, thanks very much.

BERGEN: Thank you.

BLITZER: We're waiting to hear from the United States secretary of agriculture, Ann Veneman, on reports -- the Reuters news agency, as we just noted, reporting that a case of Mad Cow Disease is now suspected in Washington State. If true, it would be the first time in the United States.

We'll get details from Ann Veneman as soon as she emerges at the cameras.

And Code Orange and a nation on high alert. More details on suspected targets within the United States and the terrorists' methods. Important information you'll want to hear.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There's enough security going on. And you know, maybe it's just terrorists trying to pull our chains.

(END VIDEO CLIP)

BLITZER: Citizens' response. How the terror warnings are impacting people around the country and how officials are working overtime to keep all of us safe.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. You're looking at a live picture. The Department of Agriculture here in Washington. On this day before Christmas Eve, the Secretary of Agriculture Ann Veneman about to emerge, about to go into this room and brief reporters on the latest report that the Reuters news agency is reporting right now that one case of mad cow disease has been discovered, has been suspected, at least, in Washington State.

It will be the first time. It will be the first time that this disease has hit the United States if, in fact, that suspicion is true. Mad cow disease discovered first in the mid 1980s in Britain, spread across Europe. Earlier this year, there was a case of mad cow disease in Alberta, Canada.

There's fear right now, according to the Reuters news agency, that it could have hit Washington state. We'll go to the Ann Veneman, the U.S. Secretary of Agriculture as soon as she goes into that room for live coverage of this developing story.

In the meantime, more now on the orange terror alert and why U.S. officials in the country's second largest city see this one as the most significant yet. CNN's Charles Feldman has more now from Los Angeles.

(BEGIN VIDEOTAPE)

CHARLES FELDMAN, CNN CORRESPONDENT: A massive investigative effort is how one federal law enforcement official describes the current orange alert. And here in Los Angeles, there is little doubt that law enforcement officials and government leaders are taking this alert very seriously.

CHIEF WILLIAM BRATTON, LOS ANGELES POLICE: The concern at this juncture is higher than it has been in the past. This is my third orange alert since I've been here and this one is much more significant and is being responded to by us in a more significant way in terms of numbers of personnel.

FELDMAN: Post 9/11, the LAPD's anti-terrorism division has made a number of arrests aimed at disrupting possible terrorist activity. One such arrest, LAPD says, happened as recently as Monday night, although the man was not charged with terrorism.

A federal and local law enforcement sources say several grand jury subpoenas have been served on individuals and entities in recent days in and around Los Angeles. There is concern about LAX. There is is concern someone might try to shoot down an airliner using a shoulder launched missile.

There is concern about the ports of Los Angeles and Long Beach that terrorists may try to use explosives to disrupt commerce, and there is concern about so-called softer targets, such as theaters, shopping malls and amusement parks.

(END VIDEOTAPE)

FELDMAN: And a planned New Year's Eve concert that was supposed to be held in downtown L.A. in front of the new Walt Disney concert hall has now been canceled. The promoter telling CNN he made the decision partly because of security concerns.

Now as for those amusement parks and shopping malls, law enforcement have notified the private security firms to be extra vigilant while police and sheriff's departments step up their patrols outside those facilities -- Wolf.

BLITZER: All right. Charles Feldman with the latest from L.A.. Thanks very much, Charles, for that report.

This reminder to our viewers. We're standing by to hear from the U.S. secretary of agriculture. Potentially, a huge story, whether or not mad cow disease has been discovered for the first time ever in the United States. The Reuters reporting there's one suspected case in Washington state right now. We'll go to the Department of Agriculture as soon as Ann Veneman walks into this room.

In the meantime, terror target. Is Washington, D.C., one of them? How people in the nation's Capitol right here are preparing for the worst.

Assessing the aftermath. Governor Arnold Schwarzenegger contending with his first California catastrophe since taking office. All that coming up.

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

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Gaza incursion. Eight Palestinians were killed in the deadliest confrontation in Gaza since October. A gun battle broke out after Israeli forces went into a refugee camp along Gaza's border with Egypt looking for tunnels used to smuggle arms.

Death count. Philippine authorities say the death count in last weekend's landslides now exceeds 200. Rescue crews have been hindered by blocked roads and downed power and telephone lines.

The Canadian supreme court has upheld that country's law against marijuana possession. The court rejected arguments by pro-marijuana activists who had claimed unsuccessfully that the drug causes no serious harm. Emotional reunion. A 78-year-old brother and a 73-year-old sister were reunited for the first time in nearly 60 years. Betty Shillon and Rosi November were separated as children during the Holocaust. And even though they both eventually moved to Israel, neither had been aware the other was still alive. And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN Breaking News.

(INTERRUPTED FOR COVERAGE OF BREAKING NEWS)

BLITZER: John King is filling in tonight for Lou Dobbs. "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





Code Orange Has Leaders Worried>


Aired December 23, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Happening right now: break news. Mortar fire explosions heard in Baghdad. You're looking at these pictures. A southern neighborhood of Baghdad rocked by gunfire. Happening right now. We're standing by for details.
Also happening now, he took part in the Washington area sniper killings. But the jury spares the life of 18-year-old Lee Boyd Malvo.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): This time, it's very real.

DONALD RUMSFELD, SECRETARY OF DEFENSE: Is it serious? Yes, you bet your life.

BLITZER: High alert in the cities and in the heartland Americans prepare for the unknown and the unthinkable. We'll hear from Los Angeles police chief William Bratton.

WILLIAM BRATTON, LAPD CHIEF: This is the most significant level of concern we've had.

BLITZER: Al Qaeda come back. Is bin Laden's network ready to strike again?

After shock.

GOV. ARNOLD SCHWARZENEGGER, CALIFORNIA: We've already begun the task of recovering and rebuilding.

BLITZER: A California town digs out from a deadly quake but counts its blessings.

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, December 23, 2003.

(END VIDEOTAPE)

BLITZER: First up, gunfire and at least a half a dozen explosions heard in Baghdad only within the past few minutes.

Let's immediately go to CNN's Rym Brahimi. She's in the Iraqi capital.

Rym, tell us what you're hearing and seeing.

RYM BRAHIMI, CNN CORRESPONDENT: Wolf, it just started about half an hour ago. We could hear basically huge booms and explosions that sounded quite distant. But you could still feel them very clearly in the office of the Palestine Hotel where we're based.

It seems to me that there was the sound of C-130s, propeller planes, gun ships. It could have been helicopter gun ships. But you couldn't actually see anything. You could just hear the thud of the explosions, their impact, being thrown on the ground here.

Now it does sound to me like this was the heaviest firefight, certainly, in several months. And the context is still very uncertain, Wolf.

It appears that, of course, as you know, there's been this increased threat around the Christmas holiday. And Baghdad was no exception. We know that there were reports from intelligence that there was a potential increased threat here in Baghdad. And so it could possibly be that this is either a response or a preemptive strike.

But again, we can't confirm that for the time being. All we know is that in the past half hour there have been huge -- there's been a lot of noise, noise of explosions, gun ships, the sound of rattling guns and firefight in one of the areas of Baghdad -- Wolf.

BLITZER: We're told from the U.S. military, Rym, this is part of Operation Iron Justice, a U.S. military operation designed on the basis of intelligence coming in to deal with potential threats from insurgents in Baghdad.

More on the way, as you point out, presumably around this holiday season. Have there been other discernible changes, U.S. military changes on the ground in Baghdad over the past few hours?

BRAHIMI: Not that we know of over the past few hours, nothing that distinct or that clear. I mean, this is certainly the biggest action that we have seen so far in the Iraqi capitol, again, in several months.

But as you know, since the capture of the former Iraqi president, Saddam Hussein, there has been an intensification of the number of raids and the operations that have been launched by U.S. forces, particularly in the so-called Sunni Triangle, around Kamara (ph), around Baquba in the west around Fallujah and a place called Walla (ph), where they launched Operation Rifles Fury a couple of days ago.

So definitely this could be, you know, part of this whole sweep of the area that has followed the capture of Saddam Hussein -- Wolf.

BLITZER: CNN's Rym Brahimi. Rym, please stand by, and we'll get back to you as information continues to come in. Explosions heard in Baghdad, only within the past half hour or so.

Let's move on, though, to another breaking story we're following right now.

A jury has decided to spare the life of convicted teenage sniper Lee Boyd Malvo. Within the past hour, the panel returned a sentence of life without parole for terrorism and life without parole for the capital murder of FBI analyst Linda Franklin.

CNN's Elaine Quijano is just outside the courthouse in Chesapeake, Virginia. She was inside while the sentence was being read.

Elaine, give our viewers the latest.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Wolf.

This jury took eight and a half hours over two days to reach this decision of life without the possibility of parole for Lee Malvo.

Prosecutors in this case had urged the jury that they needed justice for the victims. Instead, they we want with what the defense had requested, and that was mercy for Lee Malvo.

Now, afterwards, victims' family members sat with silence in the courtroom. Lee Malvo himself did not have any other reaction other than to look down. He blinked several times.

His attorney, Craig Cooley, who sat to his right, sat with his head bowed. And as each count was read, his head went lower and lower.

The jury, meanwhile, did not look at Lee Malvo. The members that I saw, some of them appeared to be wiping away tears from their eyes. It's interesting to note, the foreman of this jury is a minister.

The prosecutor, Robert Horan, did not want to appear on cameras, but he said he has a theory. Afterwards, he said, whatever you do, don't try one on Christmas week. He says that he's sure that it played a part.

So again, the verdict from these jurors, life in prison without parole for Lee Malvo -- Wolf.

BLITZER: All right. John Allen Muhammad got the death sentence in the earlier trial. Elaine Quijano, reporting from Chesapeake, Virginia. We'll be getting back to you later this hour, as well.

In another important story we're following, America on alert. And authorities admit they are, indeed, very worried right now.

he concern that put the nation at Code Orange centers around some sort of extraordinary attack with aircraft potentially seen as the most likely weapon. Security has already been beefed up at airports and on the borders, in the cities and around national landmarks.

The military is being called in, but the Pentagon is preparing for its own worst-case scenario. Standing by live, CNN's Mike Brooks. He's in Atlanta. CNN's Barbara Starr, she's over at the Pentagon. And our military analyst, Peter Bergen, he's here in Washington.

But we begin with urgent -- yes urgent efforts right now by authorities to stay one step ahead of al Qaeda.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): A spectacular terror attack using weapons of mass destruction, that's a very real fear senior U.A. officials have, a fear that prompted them to raise the nation's threat level from yellow to orange during this holiday season.

U.S. officials say they don't know whether al Qaeda or a related terror group actually has such a capability. But they tell CNN the U.S. government has intercepted communications from people described as terrorist supporters who are discussing precisely that.

We know they are trying real hard to get it, a top U.S. official says.

But perhaps an even bigger fear centers on another 9/11 type use of aircraft, to launch a terror strike somewhere in the United States.

Four major cities of concern: New York and Washington, which were targeted on 9/11; Los Angeles, especially its international airport, which was targeted around the millennium; and Las Vegas, where several of the 9/11 hijackers spent a significant amount of time in the weeks and months leading up to the strike.

A U.S. official says the decision to go to threat level orange was based on information considerably more ominous that that which triggered the four previous heightened alerts.

UNIDENTIFIED MALE: We've had a reminder just within the last 24 hours that the United States still faces serious threats. We've seen the threat level escalated to level orange. We've done that because we've seen some reporting that leads us to believe it's necessary.

BLITZER: It was not an easily made decision. The cost of the higher alert? A huge strain on local state, and federal law enforcement resources and hundreds of millions of dollars in extra expense.

U.S. official say they were also wary of going to the higher level because of what they call alert fatigue: in effect, crying wolf too often so people stop paying attention.

"Nobody wanted to do this," one source said, "but when presented with the intelligence, we had no choice."

he intelligence comes, U.S. government sources say, from what's called chatter, the electronically intercepted conversations, from human intelligence planted near terror suspects, from overseas intelligence agencies and from terror detainees, who are constantly being interrogated.

An interesting detail, one official made clear that the latest alarming information did not originate with al Qaeda detainees.

(END VIDEOTAPE)

BLITZER: And officials say the most likely means of attack would be from the skies. And while the biggest cities offer the biggest concerns, authorities are, in fact, looking at other possible targets, as well.

Let's go live to correspondent Mike Brooks. He's at the CNN Center in Atlanta.

What are you hearing, Mike?

MIKE BROOKS, CNN CORRESPONDENT: Good evening, Wolf.

Besides D.C., New York, L.A. And Las Vegas, intelligence has been received about San Francisco and the tidewater area of Virginia to include Norfolk, home to the U.S. Navy's 2nd Fleet as potential targets.

The State Department, Department of Homeland Security and other governmental agencies are reaching out to foreign governments and to international airlines to advice them of U.S. concerns and are urging them to enhance security.

Several sources indicate there is particular concern about flights originating in Mexico and France. Currently, international pilots flying in and out of the U.S. are licensed by the FAA and the Transportation Security Administration conducts background check on these pilots -- Wolf.

BLITZER: What about international airlines, Mike? Some of them, as we know, don't yet have those fortified cockpit doors that the U.S. government is demanding.

BROOKS: Most of the international flights -- in fact, all of the international airlines, the aircraft themselves, are supposed to have those reinforced cockpit doors.

Many of the international airlines, Wolf, are associated with U.S. carriers. For instance, Delta Airlines is teamed up with a number of other international airlines as part of their sky team. They meet regularly to make sure that their security is beefed up and it comes in line with the U.S. security of, let's say, Delta and some of the other major carriers. But they are -- they talk on a regular bases and they want to make sure that they're in step with the international airlines -- Wolf.

BLITZER: CNN's Mike Brooks reporting from Atlanta. Thanks, Mike, very much.

Let's go over to the Pentagon now, where senior officials drilled for the worst-case scenario today, even as they stepped up their own planning to protect American cities.

Our correspondent there, Barbara Starr, is standing by with the latest -- Barbara.

BARBARA STARR, CNN CORRESPONDENT: Indeed, Wolf, here at the Pentagon, Defense Secretary Donald Rumsfeld for the first time today speaking publicly about the impact on the nation of going to Code Orange and just how serious it all is.

(BEGIN VIDEO CLIP)

RUMSFELD: It costs money, and it causes stress on military and civilian at all levels of government. Therefore, you do not do it lately. You ask, is it serious? Yes. You bet your life.

(END VIDEO CLIP)

STARR: Military officials also telling Americans today what they may see around the country during the holiday season.

(BEGIN VIDEO CLIP)

RICHARD MYERS, JOINT CHIEFS CHAIRMAN: They may see additional air patrols over select cities and facilities, an increase in the air defense posture here in Washington, D.C., and combat aircraft could be put on a higher alert at different air bases throughout the country.

(END VIDEO CLIP)

STARR: So, Wolf, all of the pieces in place in case the unthinkable happens -- Wolf.

BLITZER: CNN's Barbara Starr at the Pentagon. Barbara, thank you very much.

Sources say U.S. intelligence officials have received warnings that al Qaeda planning attacks against U.S. interests in Saudi Arab, Bahrain, Yemen, and Kenya.

CNN's Jennifer Coggiola has details.

(BEGIN VIDEOTAPE)

RICHARD BOUCHER, STATE DEPARTMENT STATEMENTS: There is worldwide danger for Americans and westerners. There has been more specific cautions issued with regard to the Arabian Gulf and Arabian Peninsula.

JENNIFER COGGIOLA, CNN CORRESPONDENT (voice-over): There's no word on a specific target. But warnings are going out to Americans.

A senior State Department source tells CNN there is a general threat of al Qaeda attacks against U.S. interests in Saudi Arabia, Bahrain, Yemen and Kenya. All four continents have been sites of previous attacks.

The U.S. embassy in Kenya was bombed in 1998. Yemen was the site of the attack three years ago that killed 17 crewmembers aboard the USS Cole.

Nineteen Americans were killed in the 1996 bombing of the Khobar Towers in Saudi Arabia. And there were a pair of bombings at presidential compounds in Riyadh, Saudi Arabia, this year.

Last week the State Department urged Americans to defer travel to Saudi Arabia and it authorized nonessential U.S. diplomatic workers, families, officials to leave the country.

Today, the U.S. embassy in Manama (ph) warned Americans about a possible terror attack in Bahrain during the holidays.

BOUCHER: We're seeking more information about the threat, but the embassy felt it was prudent to put out a general announcement to the American community in Bahrain, since that's where the threat is centered..

Reporter: Jennifer Coggiola, CNN, Washington.

BLITZER: And here's your chance to weigh in on this important story. Our Web question of the day is this: "Is Code Orange worth the estimated $1 billion a week in additional security costs?"

You can vote yes or no. Go to CNN dot comb/Wolf. We'll have the results later in this broadcast.

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

Al Qaeda's abilities. What kind of terror is the group capable of carrying out right now? An in-depth look at the state of their operations.

Plus, taking action. Law enforcement agencies in cities across the U.S. taking serious measures to combat terrorism. We'll hear from the LAPD police chief.

And we're monitoring Baghdad right now. Explosions heard only within the past half hour or so. Part of a U.S. military operation unfolding. We'll have more details. Stay with us.

(COMMERCIAL BREAK)

BLITZER: On alert and taking action: why this heightened terror alert is different from previous ones. New revelations from the police chief of one major U.S. city.

That and much more. Stay with us.

(COMMERCIAL BREAK)

BLITZER: We're getting this information in from the Reuters news agency. Reuters reporting, quoting a U.S. industry source as saying that Mad Cow Disease has been found in Washington State. It would be the first, the first incidence of this disease in the United States. There was an outbreak of it in Canada, as many of our viewers will recall.

The official, who asked not to be identified, said she was unsure of how many cases were found. We are also learning that the secretary of agriculture, Ann Veneman, will be holding a news conference here in Washington shortly, presumably to talk about this.

We have no official confirmation. We'll stand by for details and get some details from Ann Veneman when she comes to the microphones here in Washington.

But the Reuters news agency, a report that we at CNN have not confirmed, only attributing it to Reuters. Reuters reporting that Mad Cow Disease has been found in Washington State, a U.S. industry official says.

We'll get some more information on this important story and bring it you to, our viewers. We'll also stand by to hear from the agriculture secretary, Ann Veneman.

In the meantime, a nonspecific threat against unidentified targets from an unknown enemy. Well, maybe not so unknown.

Officials continue to point to al Qaeda as the most likely source of any attack. That raises the question, what's the state of al Qaeda right now?

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Their training bases in Afghanistan were smashed, along with much of the leadership's ability to command and control operations. But experts believe al Qaeda supporters now spread around the world no longer need their leaders to run operations.

KEN ROBINSON, CNN NATIONAL SECURITY ANALYST: One of the greatest fears is that it's irrelevant at this point whether bin Laden is captured or not. These forces that are deployed around the world could possibly be taking their cues from local leaders at this time.

BLITZER: Coalition intelligence sources believe we're seeing some of that al Qaeda linked activity in Iraq.

And in the work of this man. Abu Marsad Zarkawahi (ph), a Jordanian who once pledged a loyalty oath to bin Laden and who operates his own terror network, Ansar al-Islam.

Considered by Middle East intelligence analysts to be the most dangerous man in the region, he is believed to have had a role in planning recent suicide bombings in Istanbul.

Where else can we see al Qaeda's hand? Pakistani officials believe in this month's assassination attempt on the Pakistani President Pervez Musharraf. U.S. authorities have arrested some of the highest ranking operatives, like Khalid Sheik Mohammed and Abu Zubaydah. But still at large, the al Qaeda's No. 1, bin Laden, and No. 2, Ayman al-Zawahiri, who released an videotape only last Friday.

The key question, can they pull off another 9/11 style attack? One worrisome thought, that the attacks and suicide bombings in Iraq and Afghanistan are just target practice.

TONY VILLA, TERRORISM EXPERT: That they're using these as proving grounds to bring -- to refine their tactics, to bring that to the United States.

(END VIDEOTAPE)

BLITZER: So is al Qaeda capable of carrying out a spectacular new attack against the United States? Can the orange threat alert help prevent it?

Let's turn to someone with some first-hand knowledge of the bin Laden network, CNN's own terrorism analyst, Peter Bergen.

So Peter, what do you think? Is al Qaeda in any position right now to carry out a spectacular 9/11 type attack?

PETER BERGEN, CNN TERRORISM ANALYST: That's very tough to answer. And if you asked me that on September 10, 2001, I would have said that's ridiculous, even though we knew at the time that there was indications that al Qaeda was planning a spectacular attack somewhere in the world.

On September 10, 2001, I would have said it's impossible they could have carried out something in this country.

Obviously, I think that they have been damaged, as your piece pointed out. But they are patient. After all, it took them three years to plan 9/11, maybe five years. It took them five years to plan the embassy bombing attack in Africa.

So the United States remains al Qaeda's primary targets, as somebody in your piece just mentioned. These attacks in Istanbul, Saudi Arabia, Iraq, may just be sort of warming up for the big one. Because obviously, they are still waiting to do the big one.

BLITZER: They want to declare to the world, we are here. We're still very much a threat to the United States.

BERGEN: I think, also, you've got to be very concerned about London right now. The English are being -- I think the level of worry there is higher than it's ever been since 9/11.

I think also you've got to be concerned about Israel. After all, these are both primary targets of al Qaeda.

If you think back to the millennium, which you mentioned in your piece earlier, the planned attack of the Los Angeles International Airport, which was fortunately averted. There was also a plan to attack tourist sites in Jordan and also border posts along the Israeli/Jordan border.

So, you know, all these places are possible. Where the next attack will be, who knows. But I think we can safely say that there's been a strong uptick, not only in concern but also in attacks. You think four attacks in Istanbul within the space of a week. Another devastating attack in Riyadh just six weeks. Another devastating attack in Iraq, suicide attacks in the past week.

So I think obviously there is -- there's real concern. Will they be able to pull it over in the United States? If you ask, I think tomorrow? No. Next week? No. Sometime in the next five years, almost certainly. Where and when, I don't know.

BLITZER: I have spoken in the past few days, including today, with multiple U.S. sources, high level officials who are very much in the loop. And they say this alert, going to orange this time was much more ominous than the four previous times. The information, the intelligence that was coming in was just so worrisome, even if it couldn't be completely confirmed.

BERGEN: Yes. Clearly, there would be reluctance to just do these alerts, because of the reluctance that you mentioned. But when you're talking about an attack on the scale of 9/11, when government officials are saying that, clearly this is a whole different order of magnitude of concern.

BLITZER: In the scheme of things, would this going to the higher alert deter al Qaeda? If there was a plan in the works the next few days, but then they see the United States going on this high state of alert, do you think that would necessarily tell these guys, you know what? Pull back.

BERGEN: I don't think these people are deterrable. After all, they're willing to commit suicide in these attacks.

However, you know, it might not deter them, but it might actually avert the attack, which is a whole separate issue. Obviously, if there was an orange alert on September 10, 2001, we would be in a whole different ball game.

BLITZER: When we talk about al Qaeda, the theory -- the assumption is Osama bin Laden, he's still running the show. Butt his is a loosely coordinated network out there. And even if he were to disappear, this network would still continue to pose a formidable threat.

BERGEN: I agree with you totally, Wolf. I think al Qaeda, the organization, still exists but has been damaged. But al Qaeda has morphed into a mass movement, not a movement as large as communism or Nazism or fascism or as dangerous. But however, a movement that will remain our major national security threat for perhaps a decade or more.

BLITZER: The two biggest concerns I've heard about, one involving aircraft, another involving weapons of mass destruction. But even though they presumably have been trying to get WMD, whether nuclear, chemical, or biological, and if they had it there's no doubt, according to U.S. officials, they would use it.

Do you have any reason to believe they've already developed that capability, that they have some sort of crude WMD device?

BERGEN: Certainly they developed crude ricin, which is an assassination type. Certainly, radiological bombs are within their capabilities. Bin Laden himself has said we're prepared to deploy these weapons.

In fact, just last Christmas a whole set of people were arrested in Europe, in London, in Spain and Italy with crude chemical weapons. So we definitely -- Not only have they developed these things, they've actually tried to deploy them. And they will certainly try and deploy them in the future.

Will they kill a lot of people ? Probably not. They will be weapons of mass disruption, rather than weapons of mass destruction. However, just look at the anthrax attacks, which killed five people and had a huge amount of impact.

BLITZER: One final question. I've heard some counter terrorism analysts suggest that at least in the short term, the arrest, the capture of Saddam Hussein, the humiliation, looking at him the way he does, that that may have inspired some of these al Qaeda operatives to go out and seek revenge, even though there was not necessarily any great relationship between Saddam Hussein and al Qaeda?

BERGEN: Capturing Saddam was a great victory for the Iraqi people and the coalition forces in Iraq. It's affect on the wider war on terrorism I think will be absolutely negligible.

BLITZER: That's that. Peter Bergen, as usual, thanks very much.

BERGEN: Thank you.

BLITZER: We're waiting to hear from the United States secretary of agriculture, Ann Veneman, on reports -- the Reuters news agency, as we just noted, reporting that a case of Mad Cow Disease is now suspected in Washington State. If true, it would be the first time in the United States.

We'll get details from Ann Veneman as soon as she emerges at the cameras.

And Code Orange and a nation on high alert. More details on suspected targets within the United States and the terrorists' methods. Important information you'll want to hear.

Plus this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There's enough security going on. And you know, maybe it's just terrorists trying to pull our chains.

(END VIDEO CLIP)

BLITZER: Citizens' response. How the terror warnings are impacting people around the country and how officials are working overtime to keep all of us safe.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. You're looking at a live picture. The Department of Agriculture here in Washington. On this day before Christmas Eve, the Secretary of Agriculture Ann Veneman about to emerge, about to go into this room and brief reporters on the latest report that the Reuters news agency is reporting right now that one case of mad cow disease has been discovered, has been suspected, at least, in Washington State.

It will be the first time. It will be the first time that this disease has hit the United States if, in fact, that suspicion is true. Mad cow disease discovered first in the mid 1980s in Britain, spread across Europe. Earlier this year, there was a case of mad cow disease in Alberta, Canada.

There's fear right now, according to the Reuters news agency, that it could have hit Washington state. We'll go to the Ann Veneman, the U.S. Secretary of Agriculture as soon as she goes into that room for live coverage of this developing story.

In the meantime, more now on the orange terror alert and why U.S. officials in the country's second largest city see this one as the most significant yet. CNN's Charles Feldman has more now from Los Angeles.

(BEGIN VIDEOTAPE)

CHARLES FELDMAN, CNN CORRESPONDENT: A massive investigative effort is how one federal law enforcement official describes the current orange alert. And here in Los Angeles, there is little doubt that law enforcement officials and government leaders are taking this alert very seriously.

CHIEF WILLIAM BRATTON, LOS ANGELES POLICE: The concern at this juncture is higher than it has been in the past. This is my third orange alert since I've been here and this one is much more significant and is being responded to by us in a more significant way in terms of numbers of personnel.

FELDMAN: Post 9/11, the LAPD's anti-terrorism division has made a number of arrests aimed at disrupting possible terrorist activity. One such arrest, LAPD says, happened as recently as Monday night, although the man was not charged with terrorism.

A federal and local law enforcement sources say several grand jury subpoenas have been served on individuals and entities in recent days in and around Los Angeles. There is concern about LAX. There is is concern someone might try to shoot down an airliner using a shoulder launched missile.

There is concern about the ports of Los Angeles and Long Beach that terrorists may try to use explosives to disrupt commerce, and there is concern about so-called softer targets, such as theaters, shopping malls and amusement parks.

(END VIDEOTAPE)

FELDMAN: And a planned New Year's Eve concert that was supposed to be held in downtown L.A. in front of the new Walt Disney concert hall has now been canceled. The promoter telling CNN he made the decision partly because of security concerns.

Now as for those amusement parks and shopping malls, law enforcement have notified the private security firms to be extra vigilant while police and sheriff's departments step up their patrols outside those facilities -- Wolf.

BLITZER: All right. Charles Feldman with the latest from L.A.. Thanks very much, Charles, for that report.

This reminder to our viewers. We're standing by to hear from the U.S. secretary of agriculture. Potentially, a huge story, whether or not mad cow disease has been discovered for the first time ever in the United States. The Reuters reporting there's one suspected case in Washington state right now. We'll go to the Department of Agriculture as soon as Ann Veneman walks into this room.

In the meantime, terror target. Is Washington, D.C., one of them? How people in the nation's Capitol right here are preparing for the worst.

Assessing the aftermath. Governor Arnold Schwarzenegger contending with his first California catastrophe since taking office. All that coming up.

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

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Gaza incursion. Eight Palestinians were killed in the deadliest confrontation in Gaza since October. A gun battle broke out after Israeli forces went into a refugee camp along Gaza's border with Egypt looking for tunnels used to smuggle arms.

Death count. Philippine authorities say the death count in last weekend's landslides now exceeds 200. Rescue crews have been hindered by blocked roads and downed power and telephone lines.

The Canadian supreme court has upheld that country's law against marijuana possession. The court rejected arguments by pro-marijuana activists who had claimed unsuccessfully that the drug causes no serious harm. Emotional reunion. A 78-year-old brother and a 73-year-old sister were reunited for the first time in nearly 60 years. Betty Shillon and Rosi November were separated as children during the Holocaust. And even though they both eventually moved to Israel, neither had been aware the other was still alive. And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN Breaking News.

(INTERRUPTED FOR COVERAGE OF BREAKING NEWS)

BLITZER: John King is filling in tonight for Lou Dobbs. "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





Code Orange Has Leaders Worried>