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CNN Wolf Blitzer Reports

Air France Resuming Flights to L.A. Tomorrow; Assassination Attempt on Pakistani President Pervez Musharraf

Aired December 25, 2003 - 17:00   ET

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

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


DARYN KAGAN, CNN ANCHOR: Happening now explosions heard in Baghdad and the warning sirens have followed.
Also happening now code orange Christmas, new details on homeland security concerns.

And happening overseas, Christmas crash, families waiting to welcome relatives for the holidays get horrible news.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): Targeted again a bold and bloody assassination attempt on a key ally.

Hell in the holy land a blooding bombing in Tel Aviv, a deadly missile strike in Gaza.

America on alert a green light for flights but code orange terror concerns go nuclear.

Homeless holiday, a growing number of families on the street and seeking shelter.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, December 25, 2003.

KAGAN: I’m Daryn Kagan. Wolf has the holiday off.

A day of terror abroad and terror concerns right here at home. In the last 90 minutes a series of explosions rocked Baghdad. Witnesses say that mortar shells fell in a part of the city ending a day which began with a barrage of rocket grenades.

Pakistan’s President Pervez Musharraf narrowly escaped an assassination attempt. Suicide bombers struck at both ends of his motorcade leaving 15 people dead.

A suicide bomber killed three people at a bus stop near Tel Aviv. A Palestinian group is claiming responsibility for that attack this as Israel fired missiles at a car in Gaza targeting an Islamic jihad leader. Two militants were among the six people killed. And, Air France will resume flights between Paris and Los Angeles tomorrow. Flights were scrubbed yesterday and today because of terror fears but sources warn that threat has not yet passed.

And we’re going to go ahead and begin in Los Angeles, which has been the focus of considerable concern as America remains on high alert. Air France is set to resume those flights to Paris to L.A. starting tomorrow.

Our Charles Feldman now is in Los Angeles. He says it does not mean we are out of the woods quite yet, Charles hello.

CHARLES FELDMAN, CNN NATIONAL CORRESPONDENT: Hello, Daryn.

That’s right. In fact, law enforcement officials out here remain very much on their guard even though there’s word from France tonight that nothing has yet come from the investigation there.

Here one source with knowledge of the investigation says there is a feeling among some that a hijacking yesterday may have been thwarted, the source cautioning not to read too much into the fact that no one was actually arrested or charged with anything thus far.

Whatever actually did or did not occur yesterday there does not appear to be any anxiety now about the planned resumption of Air France flights to L.A. tomorrow.

(BEGIN VIDEOTAPE)

FELDMAN (voice-over): On Friday, we’ll see if the Air France ticket counters spring back to life as the airline resumes its service to Los Angeles but behind the scenes a lot is still going on.

A law enforcement source with knowledge of this ongoing investigation says efforts in and around the L.A. area, as a preventive measure to detect signs of chemical, biological or nuclear warfare have greatly intensified since the nation went on orange alert. The source says various agencies, including the U.S. military, are being used here to look for early signs of any possible attack.

Meantime, although we’re told no one was arrested in Paris the other day several individuals were questioned. U.S. law enforcement says the source still has an interest in at least some of these individuals.

And Mexico remains a focus of investigative attention. The investigation into a possible aviation threat from south of the U.S. border remains intense says the source and is at a sensitive stage although no flights have yet been cancelled from Mexico into the United States.

UNIDENTIFIED MALE: We’re dealing with a terrorist adversary that’s opportunistic and will carry out attacks when and where they think they have the capability to do so.

(END VIDEOTAPE) FELDMAN: If law enforcement officials are right this marks the second time in recent years that Los Angeles was marked by terrorists for attack. In 1999, a plot to blow up LAX was foiled by an alert customs agent and now some law enforcement officials believe L.A. is again the focus of terrorists’ attention, perhaps determined to finish a job they failed to complete some four years ago – Daryn.

KAGAN: Charles Feldman in Los Angeles thank you for the latest on that.

We move on now to Pakistan and a vital American ally in the war on terror has had another brush with death at the hands of terrorists.

CNN’s Ash-Har Quraishi reports from Islamabad.

(BEGIN VIDEOTAPE)

ASH-HAR QURAISHI, CNN ISLAMABAD BUREAU CHIEF: It was the second assassination attempt on President Pervez Musharraf’s life in less than two weeks. Officials say just before 2:00 p.m. local time the president’s motorcade was attacked by two suicide bombers trying to ram their explosive ridden vehicles into the convoy.

UNIDENTIFIED MALE (through translator): We had blocked off the road for Musharraf’s motorcade to pass and a Suzuki van came up. He tried to enter the convoy. Then, all of a sudden, there was a blast.

QURAISHI: While the president escaped unharmed more than a dozen were killed and 46 others injured in the blast.

On December 14th, the president narrowly escaped a similar attempt on his life when remotely detonated explosives missed his motorcade by less than a minute.

Just hours after this latest attack, President Musharraf appeared on television and said he was undeterred in his mission to fight terrorism.

PRES. PERVEZ MUSHARRAF, PAKISTAN: Our resolve if anything it is strengthened. Our resolve has increased. We have to rid this country of all extremism, fundamentalism, terrorism and we have to take the country forward on the path of development and progress.

QURAISHI: Since coming to power in 1999, Musharraf banned major militants and sectarian groups in Pakistan. He is a central figure in the U.S.-led war on terror handing over more than 500 suspected al Qaeda members to the United States.

In August, an audiotape believed to have been recorded by key al Qaeda leader Ayman al-Zawahiri called for Pakistanis to rise up against their president for supporting the U.S.-led war in Afghanistan.

NAYYAR ZAIDI, PAKISTANI JOURNALIST: Al Qaeda can also play havoc by targeting other places, army installations, other institutions but they have not done that. They are focusing on one person so that means that if they are behind it they consider that if he is gone that there might be some change in policies.

QURAISHI: President Musharraf has not ruled out the possibility that al Qaeda may be behind the attacks and defended his security personnel for doing the best they can.

MUSHARRAF: I think the people who look at my security, who are around me, they protect me and my life with their own lives. I have no (unintelligible) against them at all and security measures were taken. Suicide bombers – totally security against suicide bombers really cannot be guaranteed by any force.

QURAISHI (on camera): Still a reassessment of the president’s security situation is underway. The prime minister presided over an emergency cabinet meeting to discuss the day’s events and Pakistani security forces remain on high alert as the investigation into this latest assassination attempt is just beginning.

Ash-Har Quraishi CNN Islamabad, Pakistan.

(END VIDEOTAPE)

KAGAN: The official color for this Christmas 2003 has been orange as America has been living under an orange alert.

With the latest on that let’s go to the Pentagon and our Barbara Starr – Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Daryn, we are now learning more about the results of what has happened since those Air France flights were cancelled between Washington – between Paris and Los Angeles yesterday.

Officials are now telling our correspondent Jeanne Meserve that a number of people have been questioned. No one is in custody at this time but there remains a good deal of concern.

Now on the three flights from Paris to Los Angeles International Airport that were cancelled, on the first flight we are told there were a handful of people on that manifest who were of specific concern to U.S. intelligence. At least some of those people did not show up for the flight possibly because they learned it was cancelled. Some did and were questioned.

One of the people that was of great concern on that first flight was someone who was said to have had a commercial pilot’s license but he did not show up for that flight so that person by our understanding has not yet been questioned.

On the second and third flights that were cancelled from Paris to Los Angeles some people that were listed again did not show up for the flight. What officials don’t know is if they learned that the flights were cancelled and simply did not come to the airport in Paris or if they had decided prior to that to not show up and not fly on those Air France flights.

But officials are still saying that they have very credible intelligence about the risk of a terrorist attack. There is a good deal of concern in the international aviation community. The U.S. is speaking with other countries about aviation security.

We are told also, of course, including the country of Mexico because of its contiguous air space with the United States. We are told that Mexican aviation authorities have assured the United States they are stepping up their security.

Homeland Security Secretary Tom Ridge at work most of the day here in Washington, the president continuing to be briefed by his advisors on the situation – Daryn.

KAGAN: Barbara Starr thank you for the latest there. We’ll see you a little bit later in the program.

Right now news from Afghanistan where a bomb exploded just outside a United Nations guest house in Kabul, the pre-dawn attack caused some damage but there were no casualties. The U.N. facility is located close to the presidential palace and the headquarters for the international security force.

In the Middle East, four Israelis were killed today when a suicide bomber struck at a busy intersection near Tel Aviv. A Palestinian group claimed responsibility.

Right before that an Islamic jihad leader was among the six Palestinians killed in an Israeli missile strike in Gaza.

Let’s bring in our Chris Burns who’s standing by now in Tel Aviv, Chris hello.

CHRIS BURNS, CNN CORRESPONDENT: Daryn, here is the site, a makeshift menorah here on the seventh night of Hanukah, this menorah sitting on the bus stand, a bus stand that was shattered by that suicide bomber just hours ago, four people dead plus the suicide bomber and 15 other people still hospitalized in the kind of scene we haven’t seen here really in the past two and a half months.

(BEGIN VIDEOTAPE)

BURNS (voice-over): The suicide bomber struck in the middle of rush hour shattering this bus stop in the Tel Aviv suburb of Petatigva (ph). The blast came shortly after an Israeli Apache helicopter rocketed a vehicle in Gaza City. There was no apparent link between the two attacks among the dead in Gaza Palestinian militants as well as civilians.

RA’ANAN GISSIN, SHARON SPOKESMAN: It’s not a question of restraint. It’s a question of being able to intercept and to arrest other people but this guy who was responsible for the death of six Israelis and 19 wounded who is the head of the Islamic Jihad get their order from Syria, from Ramadan Shala (ph) this guy was about to conduct a major, mega terrorist attack.

BURNS: For more than two months there were no suicide attacks or so-called targeted killings of Palestinian militants until now. SAEB ERAKAT, CHIEF PALESTINIAN NEGOTIATOR: We condemn this vicious cycle and we call upon President Bush personally to make sure that he must revive the American role and support this role in providing (unintelligible) time line and monitors on the ground.

BURNS: But the attacks came amid increasing clashes in the territories. Among the latest an ambush that killed two Israeli army officers in central Gaza and an Israeli incursion in the southern Gaza down of Rafa (ph). The Israeli army says they found an arms smuggling tunnel there. At least nine Palestinians were killed and dozens wounded including militants and civilians.

(END VIDEOTAPE)

BURNS: Now since that incursion the Palestinian Authority has broken off contacts with the Israeli government aimed at trying to start – trying to arrange the first face-to-face meeting between the Palestinian and the Israeli prime ministers.

That meeting was seen as a possible step toward starting again down the road toward peace contacts and possibly even the U.S.-led roadmap for peace. At this point it remains frozen – back to you Daryn.

KAGAN: For now that progress will have to wait. Chris Burns in Tel Aviv, Chris thank you for that.

BURNS: Thank you.

KAGAN: News of a deadly plane crash, a search for survivors, a charter jet believed to be carrying as many as 140 passengers crashes after takeoff.

Holiday cheer in Iraq interrupted by a series of attacks against coalition targets in Baghdad.

Plus, confirmation of a mad cow case in the U.S. and new details about the animal carrying the disease, the hard news ahead on WOLF BLITZER REPORTS.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Sometimes it’s like they care and they give us things and then after that it’s back to a normal routine.

(END VIDEO CLIP)

KAGAN: It’s not easy keeping your hopes high on the holidays when you don’t have a home to call your own. A year round struggle gets extra attention during the season of giving.

(COMMERCIAL BREAK)

KAGAN: Wire service reports say that at least 50 people are dead following the crash of a charter jet in the West African country of Benin. Reuters quotes Benin’s health minister as saying there are 22 survivors. Witnesses say the airliner had just taken off from a coastal airport when it plunged into the Atlantic Ocean.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): It was bound for Beirut, many of it passengers headed home for Christmas but this jet barely made it off the ground. Just after takeoff from the tiny West African country of Benin the Boeing 727 crashed into the sea littering the coastline with wreckage and bodies. While parts of the plane lie in the surf others float 100 yards into the ocean, shorn off landing gear, a severed cockpit, and a ripped and tangled fuselage.

A witness says the plane hit a building at the end of the runway on takeoff causing it to crash. Airport security officials say at many as 140 passengers and crew were believed to be onboard. So far, though, bodies far outnumber survivors and residents wade in the surf to recover them. One man sat in the sand with blood running down his chest.

Family members of the victims gathered at the arrival lounge at Beirut Airport. Some wept. Others prayed to God to spare their loved ones.

UNIDENTIFIED MALE (through translator): We don’t know what’s going on. Nobody is supplying us with the correct information. My brother, uncle, and other relatives were on the plane.

KAGAN: One of the plane’s pilots who survived said the Boeing had been chartered by a Lebanese carrier called United Transit Airline. Most of the passengers were believed to be Lebanese.

(END VIDEOTAPE)

KAGAN: And now to Baghdad, which was rocked by a series of explosions just a short while ago. A U.S. military spokesman says two or three mortars or rockets were fired into what’s known as the Green Zone near the headquarters of the U.S.-led administration. There are no reports of casualties.

The holiday also began with a daring series of strikes. Our Rym Brahimi has the story from the Iraqi capital.

(BEGIN VIDEOTAPE)

RYM BRAHIMI, CNN CORRESPONDENT: It was a Christmas morning many here will remember. It started at 6:15 in the morning, a series of rocket-propelled grenade attacks, at least eight U.S. military sources say in the space of one hour were launched throughout the Iraqi capital.

Among the targets that were hit the Turkish residence. Turkish Embassy sources say that the residence was hit. There were also explosions around the compound in the early morning. The Sheraton Hotel, right by the Palestine Hotel, was targeted by three RPGs but hit by two. There was damage to the elevator shaft and the atrium and this only a few hours after a mortar round missed the hotel last night.

An apartment blast nearby caused two injuries among Iraqi civilians and some explosive device we’re told landed in the Green Zone where coalition forces have their headquarters.

(voice-over): U.S. forces have been spending Christmas on high alert for terror attacks, the U.S. military saying it had made a point of not letting its guard down at Christmas in order to counter the possibility of increased attacks that their intelligence had said would take place on the 24th, 25th and 26th.

Despite the launching of Operation Iron Grip throughout the Iraqi capital some U.S. soldiers were able to celebrate with a turkey. A group of them located at the Olympic Stadium told CNN that they felt they had good morale for the time being that also a thought for their fallen colleagues, those U.S. soldiers that have lost their lives in the past weeks and months of conflict in Iraq.

Rym Brahimi, CNN, reporting from Baghdad.

(END VIDEOTAPE)

KAGAN: Assassination attempt, terrorists launch a second attack against the president of Pakistan, why the leader has become a top terror target.

Terror threats and renewed concerns over weapons of mass destruction, find out what special action the U.S. military is taking to protect the nation.

And the confirmation, what tests show on the suspected case of mad cow disease in the U.S.

(COMMERCIAL BREAK)

KAGAN: And now the latest on mad cow disease. The Agriculture Department says that lab tests in Britain now confirm that a cow that was slaughtered this month in Washington State did have mad cow disease. Even before that conclusive word about a dozen countries had already stopped American beef imports.

Our Medical Correspondent Christy Feig has more.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN MEDICAL CORRESPONDENT (voice-over): USDA officials say the animal in question was about four years old and lived on this 4,000 cow dairy farm in Washington State.

UNIDENTIFIED FEMALE: None of the cattle on that farm will move off that farm. The owners of the farm have been very cooperative. FEIG: News Thursday a lab in England further confirmed the animal does indeed have mad cow disease will likely do more damage to the U.S. beef industry. Already about a dozen countries, including Japan, South Korea, and Mexico are suspending imports of U.S. beef.

Last year Japan imported $842 million of U.S. beef, South Korea $610 million and Mexico $595 million. The total value of U.S. beef exports last year was $2.5 billion.

Industry officials are asking countries not to overreact even though the U.S. bans beef from most other countries that have had mad cow disease.

CHANDLER KEYS, NATIONAL CATTLEMEN’S BEEF ASSOCIATION: What we’ll have to our trading partners and say is let’s do this based on risk and science and not on hysteria and scare tactics.

FEIG: Cows can’t transmit the disease within a herd. They can only be infected by eating feed that contains infected animal parts. In 1997, that became illegal in the U.S. but since this cow was only about four years old, experts say feed companies’ compliance with the ban may not be absolute.

Since it takes several years from the time the animal is infected until symptoms appear the USDA is now focusing its efforts on finding the farm or market where this cow was infected. Only then can they determine if there are more cows that could have the disease.

(on camera): In rare cases, humans can get sick from eating the brain or spinal cord tissue of an infected animal but not its meat. Even so, at least one large grocery chain in Oregon is already recalling ground beef because they buy their meat from one of the processing plants that received the infected animal’s meat.

Christy Feig, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Avoiding assassination again, Pakistan’s president escapes injury after a second attempt on his life in just 12 days. Why is he the terrorists’ new target?

Hope and survival, making it through the holidays when your only wish is charity.

(COMMERCIAL BREAK)

KAGAN: Welcome back to CNN.

It is an orange Christmas. We have new information for you on the terror threat.

First though let’s check out the latest headlines.

Three days after coastal California was hit with a major earthquake there were a series of aftershocks today. There were not reports of serious damage or injuries. Monday’s earthquake measuring 6.5 in magnitude was blamed for two deaths and an estimated $100 million in damage.

Los Angeles is having a wet Christmas. This is the first rainy Christmas Day there in 20 years. The same weather system is bringing snow to the local mountains and the Sierra Nevada in northern California.

And, at least ten people were killed today in Arab-Israeli violence. Four people died in a bomb attack at a Tel Aviv intersection. Police say the bomber also died. And six people died in Gaza where Israel launched an air strike. The dead included two leaders of the militant Islamic Jihad organization.

Let's get back to out top story now, and that is the continuing terror threat as America remains on alert. And bring in our Pentagon correspondent Barbara Starr who earlier in the program brought us some late-breaking details on the Orange alert. Barbara, hello once again.

STARR: Well, Daryn, at this this hour some progress against the terrorist threat that led the nation to Code Orange but no fewer worries. U.S. officials now saying some of the people they wanted to question never showed up for those canceled Air France flights.

(BEGIN VIDEOTAPE)

STARR (voice-over): Air France will resume regularly-scheduled flights between Paris and Los Angeles Friday. French officials said they failed to discover information linking several canceled flights to the threat of an al Qaeda attack.

PETER BERGEN, CNN TERRORISM ANALYST: I suspect that this is not a ruse. I don't think they're just playing with us because this seems such a large volume of information and such a large amount of concern. So this alert seems to be the real deal.

STARR: Air France canceled a total of six flights when U.S. gave Paris intelligence indicating at least one flight over Christmas might be infiltrated by an al Qaeda operative. Passengers were questioned, but no evidence of an attack being planned.

Still, plenty of worry. Since 9/11 the only acknowledged al Qaeda plot directed against the U.S. was Richard Reid's attempt two years ago at Christmas to blow up an airliner out of Paris using explosive in his shoes.

BERGEN: There is a pattern already of al Qaeda planning attacks around the Christmas and New Year season. Why would they be interested in doing that? I think, you know, one thing is you have gatherings of people, large numbers.

STARR: The U.S. remains on Code Orange alert. Airports in key facilities on watch. Administration officials say there is still credible information about a plane being taken under al Qaeda control abroad and then used to attack the United States. There is particular concern about flights scheduled from Mexico to the U.S. (END VIDEOTAPE)

STARR: And, Daryn, the alert is now expected to last into the new year. Military and other emergency weapons response teams will remain on call. Combat air patrol also continue. Surface-to-air missiles deployed, all ready to respond -- Daryn.

KAGAN: Barbara Starr in Washington, thank you for that.

At this hour, some progress against the terror threat that led the nation to Code Orange. But no fewer worries. U.S. officials now saying some people they wanted to question never showed up for those canceled Air France flights.

And we have much more ahead. Another very close call today for a key U.S. ally in the war against terrorism. Suicide bombers blew up two vehicles mere a motorcade carrying Pakistan's President Pervez Musharraf, killing 15 people and wounding dozens more.

Musharraf's car was damaged but he wasn't hurt. It was the second time this month that Musharraf has been targeted. The Pakistani leader appeared on state television after the attack, blaming Islamic extremist and vowing to continue the fight against terror.

Pakistan is a nuclear power in a dangerous region which makes stability there even more important. But it also is a constant source of concern to the U.S. Let's bring in now our national security correspondent David Ensor with more on that. David, hello.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Daryn, for some years now there's been concern that Pakistan might be the source of nuclear technology going to some unsavory regimes. In recent weeks and months, though, there's increasing evidence that that may be true.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): The growing evidence Pakistani scientists may have helped Iran, North Korea and Libya acquire nuclear weapons technology is raising new concern in Washington about a key ally.

BUSH: We've had no better partner in fighting terror than President Musharraf.

ENSOR: When Iran recently shared information on its nuclear suppliers with international regulators, the evidence pointed to Iran getting designs and possibly actual uranium enrichment centrifuges from Pakistani scientists.

UNIDENTIFIED MALE: Pakistan is our ally. And in a way they're to being us in the back by helping countries like Iran, North Korea, perhaps even Libya, get the wherewithal to make nuclear weapons.

ENSOR: Pakistan's apparent assistance to Iran and the others took place in the '80s and '90s, well before Pakistan's President Musharraf took power. UNIDENTIFIED MALE: The horses bolted out of the barn. We're talking about exports that took place quite a number of years ago. Going forward, of course, we can emphasize the Pakistanis don't do any more of this. But what's already happened has happened.

ENSOR: Scientist whose may have sold nuclear secrets have been questioned by authorities in Pakistan this week, including Abdul Qadir Khan, father of the Pakistani bomb which was first detonated in 1998 to great celebration.

So far, though, none of the scientists has been charged with any crime.

UNIDENTIFIED MALE: They have to hold these people accountable so it sets out a clear warning to other Pakistanis that this will not be tolerated.

(END VIDEOTAPE)

ENSOR: The two attempts on Musharraf's life, today and last week, make the evidence against Pakistani scientists all the more worrying, since many analysts say if Musharraf should go an Islamic state could emerge in Pakistan and nuclear technology spreading could increase dramatically. So there's a lot at stake for Washington potentially in keeping General Musharraf alive -- Daryn.

KAGAN: Absolutely. And the bottom line here is General Musharraf the only -- or, soon to be just President Musharraf, the only thing standing between the U.S. and more nuclear proliferation in Pakistan, David?

ENSOR: Well there are a lot of more sensitive people in Pakistan. And it's likely that if he were to be killed, there would be another military government that would emerge.

But could it protect its leader? That's the question. And in the last elections, Islamist parties, fundamentalist parties did very well. So there's a good deal of concern about Pakistan at this point.

KAGAN: David Ensor, thanks for bring that important information to us on this Christmas Day. Appreciate it.

So that us to the question, is the Musharraf regime in danger and what dangers does Pakistan's nuclear pose? Husain Haqqani is a Pakistani journalist and a former diplomat. He served as adviser to three prime ministers. Right now he's a visiting scholar at the Carnegie Endowment. Husain Haqqani joins me from Washington.

Good evening, happy holidays, thanks for being here. Thanks for being here with us.

HUSAIN HAQQANI, CARNEGIE ENDOWMENT: Pleasure being here, Daryn.

KAGAN: What exactly is going on? Why suddenly is Pervez Musharraf such a huge target? HAQQANI: We must remember that General Musharraf actually antagonized the Islamists when he decided to side with the United States after 9/11. Until then, Pakistan had had a strategic policy of supporting the Taliban in Afghanistan and Islamic militants in its fight with India over Kashmir.

KAGAN: But that goes back two years.

HAQQANI: Those people feel that General Musharraf has been a traitor to their cause and they are definitely present both in Pakistan security services and among ordinary Pakistanis. And these people want him out of the way.

They think if they get him out of the way, they can effect a policy change in Pakistan and revert Pakistan back to the old policy of supporting Islamists.

KAGAN: I do want to get to what would be next if Musharraf was out of the way, but first I want to ask you, does his recent decision, his announcement, that he'll be stepping down as head of the army have anything to do with these assassinations attempts? Is he trying to appease those who don't support him?

HAQQANI: The general's problem is that he hates Pakistan's secular politicians more than he hates Islamist politicians. And the deal he did with the Islamist politicians in parliament was essentially at the expense of the secular politicians.

He thinks that way he will buy the Islamists support. But the Islamist politicians are more likely to be hand and glove with Islamic extremist, militants than they are to likely support General Musharraf in the long term.

KAGAN: David Ensor's report that we heard just before you on did a good job of explaining why Pervez Musharraf is so important for U.S. interest. If it turns out he is shoved aside or he is eliminated, who is next in line to fill that leadership vacuum in Pakistan?

HAQQANI: Well constitutionally, of course, the senate chairman is supposed to take over but I think that the successor to General Musharraf will be another general who will try to stabilize things. Whether that general appease the Islamists more or less than General Musharraf would again be a problem for U.S. policy.

Pakistan will remain a troubled and difficult ally for the United States in the near future. And the reason for that is Pakistan's preoccupation with India makes the Islamists more important to the Pakistani military than a close alliance with the United States. And that is the strategic shift that General Musharraf now has to introduce.

KAGAN: What can Pervez Musharraf at this point, what does he literally need to do to save his head at this point? And his power?

HAQQANI: For one he has to weed out Islamists from within the Pakistani military and security establishment. At the same time, he has to try and broaden the base of his support within the country.

At the moment, he's operating in a political vacuum. Islamists are baying for his blood. The secular politicians are not on his side because he won't do a deal with them. And in that whole process the Islamic extremists are able to swim in friendly waters.

What Musharraf has to do is make sure that the Islamist militants do not have the support of the ordinary people so that these people start snitching on the extremist rather than protecting them and allowing them to slip in and out of ordinary population centers.

KAGAN: Very dangerous times in your home country.

HAQQANI: It certainly is.

KAGAN: Husain Haqqani, thank you so much for joining us on this holiday. Appreciate it.

HAQQANI: Pleasure.

KAGAN: Well a lot of people are away for the holidays. How U.S. troops in Iraq celebrate Christmas when they're far from family and friends.

Predictions for a brighter future. We'll hear from a retired Air Force colonel who just returned from a visit to Iraq.

And homeless for the holidays. What Christmas is like when a shelter is your home.

But first, a quick look at other news making "Headlines Around the World."

(BEGIN VIDEOTAPE)

KAGAN (voice-over): Gas field disaster. A natural gas well accident in southwestern China released toxic fumes, killing at least 191 people. Chinese state say that thousands were forced to evacuate.

Mars shot marred. An initial attempt to retrieve data from a European Mars probe has failed. The British-built Beagle II failed to broadcast a signal confirming that it landed on the Red Planet last night. But scientists say they will try again later.

Monarch's message. Queen Elizabeth paid tribute to the troops in Iraq. In a break with tradition, part of the queen's annual Christmas message was recorded at a military barracks instead of a palace.

The pope at Christmas. Pope John Paul II called for world peace as he delivered his 26th Christmas address as leader of the Roman Catholic Church. the 83-year-old pontiff suffers from Parkinson's disease. He appeared to struggle as he repeated Christmas greetings in 62 languages.

Unseasonable greetings. Christmas is a summer holiday in the Southern Hemisphere. And thousands of tourists celebrated in swimming trunks and bikinis on Bondi Beach in Sydney, Australia. Who needs snow, they say, when you have sun, sand and surf?

That's our Christmas Day look "Around the World."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

KAGAN: Let's keep those Christmas greetings going. President Bush has written a Christmas letter to the members of the U.S. military. Take a peek, a portion of what he wrote. "Americans are blessed to have men and women like you protecting us and defending the cause of freedom across the world. May God bless and may He watch over our country."

Despite the continuing danger in a country far from home, U.S. troops in Iraq are doing what they can to keep Christmas in their hearts. Many troops ate turkey and trimmings, attending religious services, sang Christmas carols and made telephone calls home. Some senior officers performed tasks normally handled by lower-ranking soldiers in order to give them some time observe the holiday.

Iraq has seen an up surge in attacks since the capture of Saddam Hussein, but one expert see as much brighter future. William Mitchell directs the Center for International Education at Baylor University. He is a retired Air Force colonel and commanded a base in Turkey during the First Gulf War. He recently returned from a trip to Iraq and spoke with our Wolf Blitzer.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN ANCHOR: Colonel Mitchell, thanks for joining us. I know you're just bag from Iraq. First of all, tell us what you were doing there.

COL. WILLIAM MITCHELL (RET.) U.S. AIR FORCE: Well, we had a workshop, Baylor University put together a workshop for us to take 22 professors over into the northern Iraqi area and gather seven or eight different universities together and try to bring them up to date and explain to them as much as possible to a democratic from of freedom of information within a classroom.

BLITZER: What did you find out?

MITCHELL: What we found out is that they were extremely eager to learn and that the idea of the way we were actually presenting the materials were totally surprising and different to what they had experienced in the past under Saddam Hussein.

BLITZER: You were up in the north in the Dohuk (ph) area. Relatively safe up there. Certainly more than the Sunni Triangle. Are they receptive to U.S. involvement into their affairs?

MITCHELL: They absolutely are. They were extremely gracious and appreciative of what's happened there from the U.S. perspective. And now we actually went over the day Saddam was captured -- excuse me. Yes, the day Saddam was captured. And they were extremely ecstatic celebrating and we were part of a great ceremony in terms of their appreciation of what had happened by U.S. forces.

BLITZER: The capture of Saddam Hussein in the short term, what -- based on what you heard and what you saw, what's been the impact?

MITCHELL: Well, in the short term, there's been a relaxation of -- a sense for the Kurds, that is, in the northern area, a sense that the past is not going to return. It truly is a day of new Iraq. And a great sense of relief.

And I think that what surprised me about the general attitude was the fact that they're not dwelling on the past. They're no longer believing that -- that they're looking for -- looking backwards, but now they're look forward.

For the fist time they can plan something more than a couple of days ahead. In fact, most of the people they said that under Saddam they were going hour by hour and it was a state of tremendous stress for them.

BLITZER: But, did you emerge, Colonel, with a sense that Iraq can remain a united, unified country or that eventually it's going to split up into a Sunni area, a Shi'ite area, a Kurdish area as so many experts are predicting?

MITCHELL: Well I think you're absolutely right. Most experts are predicting that it will split up.

But I think it's -- in my case, I personally believe that a federation would work, a form of republic that would actually give semi-autonomy to the individual of five different units of so that are there. The cultural units.

But Kurdistan is willing. The northern area is certainly willing to go along with the federation.

BLITZER: And Kurdistan, the Kurds up in the north, if they were to form their own independent country that would make the Turks pretty crazy, at least in the short term.

MITCHELL: That would be extremely difficult for Turkey given Turkey's involvement with their own internal struggles with the Kurds in the southeastern part of the country. The Turks are of the Kurdish ancestry. They really don't want to see an independent Kurdistan because they see that as a threat to their national security. In fact, that would be an extremely difficult decision for all of us if that were to occur.

BLITZER: Very briefly, bottom line. Are you upbeat or pessimistic as you look towards Iraq's future?

MITCHELL: I am extremely optimistic about Iraq's future based on what we observed in the northern Iraqi area. And I think that there are some good things that are going be coming forward. Baylor's working towards making higher education a top priority for Iraq. And we're working with the CPA and other people in trying to make this thing work.

BLITZER: Colonel William Mitchell of Baylor University. Thanks for joining us.

MITCHELL: You're welcome.

(END VIDEOTAPE)

KAGAN: Family in other countries aren't the only ones suffering on this holiday. A look inside the lives of America's homeless.

And a television reporter gets up and close and personal with a north pole pet.

(COMMERCIAL BREAK)

KAGAN: For many the holidays are a time for caring and giving, especially to those who have fallen on hard times. And that includes the thousands of families homeless here in America. Our Jennifer Coggiola introduces us to one of those families.

(BEGIN VIDEOTAPE)

JENNIFER COGGIOLA, CNN CORRESPONDENT (voice-over): Tamikio Baily has lived in this room at D.C. Village Shelter for the past two months with her seven kids.

TAMIKIO BAILY, HOMELESS MOM: Oh, this is Tiana Baily (ph). She's 3-years-old. That's Takia (ph). She's 4-years-old.

COGGIOLA: And for the Baily children, Santa came early this year.

(on camera): Show me your stuff. Do you have toys around here?

(CROSSTALK)

COGGIOLA (voice-over): Tamikio's family exemplifies a growing number of the homeless population. And a frustrating misconception for those who work to end it.

NAN P. ROMAN, NATL. ALLIANCE TO END HOMELESSNESS: We think that homeless people are the men that we see on the street, people with mental illness, substance abuse disorders, physical ailments. And those people are indeed homeless but a large percentage of homeless people are also people living in families.

COGGIOLA: Homeless children battle a unique set of challenges.

UNIDENTIFIED FEMALE: I want to live in my own house.

ROMAN: What's very difficult for children is the lack of stability and not having a place to live, so they do often not as well in school, they have more illnesses. It's stress. COGGIOLA: How families get to the streets, another common misconception.

ROMAN: Perhaps they become ill or their car breaks down. They lose their job, they can't pay the rent one month, they get evicted. And it's so expensive and difficult to get back into housing once they've lost their housing.

COGGIOLA: Donations pour in during the holidays, something the Bailies are grateful for.

BAILY: This is my fist Christmas in a shelter, so it's been really good.

COGGIOLA: Happiness and generosity this mother wishes could continue year-round.

BAILY: Sometimes it's like they care and they give us things. And then after that, it's back to a normal routine.

ROMAN: It's a year-round situation. And while it's wonderful that people give so generously during the holiday season, we need people, also, to give when it's not the holiday season.

COGGIOLA: Nevertheless, the Baily children are grateful this year.

UNIDENTIFIED FEMALE: We want you all to say thank you to the people that came in to give you gifts, OK?

BAILY: There's nothing like your own home where you can cook for them and talk to them and play with their stuff. So I get depressed sometimes. But they keep me going. They're happy. I'm fine.

COGGIOLA (on camera): The latest study by the U.S. conference of mayors show the request for shelters by homeless families last year was up 15 percent. And of the total population of homeless, 40 percent of them were families were children.

Jennifer Coggiola, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Terror threats in the U.S. An update on the day's top stories ahead.

Plus, you know Dasher and Dancer and now one news reporter says she knows Blitzen. Oh, dear. A reindeer run-in you don't want to miss.

(COMMERCIAL BREAK)

KAGAN: Well this the time of year when television reporters stop stalking politicians and crime suspects and seek out those softer stories about things like Santa Claus, Christmas presents and holiday pageants. Today's "Picture of the Day" is a reminder that even holiday news has it hazards. Watch this.

This is reporter Meghan Stapleton of Alaska's TUU Television. She was showing off a baby reindeer named Blitzen when the animal jumped at her. We can tell you right now reporter Stapleton was hurt. Any newsmaker who's ever untruthful questions from overzealous reporters probably know exactly how that reindeer felt.

Well please joining us tomorrow, 5 Eastern for WOLF BLITZER REPORTS.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Assassination Attempt on Pakistani President Pervez Musharraf>


Aired December 25, 2003 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Happening now explosions heard in Baghdad and the warning sirens have followed.
Also happening now code orange Christmas, new details on homeland security concerns.

And happening overseas, Christmas crash, families waiting to welcome relatives for the holidays get horrible news.

Stand by for hard news on WOLF BLITZER REPORTS.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): Targeted again a bold and bloody assassination attempt on a key ally.

Hell in the holy land a blooding bombing in Tel Aviv, a deadly missile strike in Gaza.

America on alert a green light for flights but code orange terror concerns go nuclear.

Homeless holiday, a growing number of families on the street and seeking shelter.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Thursday, December 25, 2003.

KAGAN: I’m Daryn Kagan. Wolf has the holiday off.

A day of terror abroad and terror concerns right here at home. In the last 90 minutes a series of explosions rocked Baghdad. Witnesses say that mortar shells fell in a part of the city ending a day which began with a barrage of rocket grenades.

Pakistan’s President Pervez Musharraf narrowly escaped an assassination attempt. Suicide bombers struck at both ends of his motorcade leaving 15 people dead.

A suicide bomber killed three people at a bus stop near Tel Aviv. A Palestinian group is claiming responsibility for that attack this as Israel fired missiles at a car in Gaza targeting an Islamic jihad leader. Two militants were among the six people killed. And, Air France will resume flights between Paris and Los Angeles tomorrow. Flights were scrubbed yesterday and today because of terror fears but sources warn that threat has not yet passed.

And we’re going to go ahead and begin in Los Angeles, which has been the focus of considerable concern as America remains on high alert. Air France is set to resume those flights to Paris to L.A. starting tomorrow.

Our Charles Feldman now is in Los Angeles. He says it does not mean we are out of the woods quite yet, Charles hello.

CHARLES FELDMAN, CNN NATIONAL CORRESPONDENT: Hello, Daryn.

That’s right. In fact, law enforcement officials out here remain very much on their guard even though there’s word from France tonight that nothing has yet come from the investigation there.

Here one source with knowledge of the investigation says there is a feeling among some that a hijacking yesterday may have been thwarted, the source cautioning not to read too much into the fact that no one was actually arrested or charged with anything thus far.

Whatever actually did or did not occur yesterday there does not appear to be any anxiety now about the planned resumption of Air France flights to L.A. tomorrow.

(BEGIN VIDEOTAPE)

FELDMAN (voice-over): On Friday, we’ll see if the Air France ticket counters spring back to life as the airline resumes its service to Los Angeles but behind the scenes a lot is still going on.

A law enforcement source with knowledge of this ongoing investigation says efforts in and around the L.A. area, as a preventive measure to detect signs of chemical, biological or nuclear warfare have greatly intensified since the nation went on orange alert. The source says various agencies, including the U.S. military, are being used here to look for early signs of any possible attack.

Meantime, although we’re told no one was arrested in Paris the other day several individuals were questioned. U.S. law enforcement says the source still has an interest in at least some of these individuals.

And Mexico remains a focus of investigative attention. The investigation into a possible aviation threat from south of the U.S. border remains intense says the source and is at a sensitive stage although no flights have yet been cancelled from Mexico into the United States.

UNIDENTIFIED MALE: We’re dealing with a terrorist adversary that’s opportunistic and will carry out attacks when and where they think they have the capability to do so.

(END VIDEOTAPE) FELDMAN: If law enforcement officials are right this marks the second time in recent years that Los Angeles was marked by terrorists for attack. In 1999, a plot to blow up LAX was foiled by an alert customs agent and now some law enforcement officials believe L.A. is again the focus of terrorists’ attention, perhaps determined to finish a job they failed to complete some four years ago – Daryn.

KAGAN: Charles Feldman in Los Angeles thank you for the latest on that.

We move on now to Pakistan and a vital American ally in the war on terror has had another brush with death at the hands of terrorists.

CNN’s Ash-Har Quraishi reports from Islamabad.

(BEGIN VIDEOTAPE)

ASH-HAR QURAISHI, CNN ISLAMABAD BUREAU CHIEF: It was the second assassination attempt on President Pervez Musharraf’s life in less than two weeks. Officials say just before 2:00 p.m. local time the president’s motorcade was attacked by two suicide bombers trying to ram their explosive ridden vehicles into the convoy.

UNIDENTIFIED MALE (through translator): We had blocked off the road for Musharraf’s motorcade to pass and a Suzuki van came up. He tried to enter the convoy. Then, all of a sudden, there was a blast.

QURAISHI: While the president escaped unharmed more than a dozen were killed and 46 others injured in the blast.

On December 14th, the president narrowly escaped a similar attempt on his life when remotely detonated explosives missed his motorcade by less than a minute.

Just hours after this latest attack, President Musharraf appeared on television and said he was undeterred in his mission to fight terrorism.

PRES. PERVEZ MUSHARRAF, PAKISTAN: Our resolve if anything it is strengthened. Our resolve has increased. We have to rid this country of all extremism, fundamentalism, terrorism and we have to take the country forward on the path of development and progress.

QURAISHI: Since coming to power in 1999, Musharraf banned major militants and sectarian groups in Pakistan. He is a central figure in the U.S.-led war on terror handing over more than 500 suspected al Qaeda members to the United States.

In August, an audiotape believed to have been recorded by key al Qaeda leader Ayman al-Zawahiri called for Pakistanis to rise up against their president for supporting the U.S.-led war in Afghanistan.

NAYYAR ZAIDI, PAKISTANI JOURNALIST: Al Qaeda can also play havoc by targeting other places, army installations, other institutions but they have not done that. They are focusing on one person so that means that if they are behind it they consider that if he is gone that there might be some change in policies.

QURAISHI: President Musharraf has not ruled out the possibility that al Qaeda may be behind the attacks and defended his security personnel for doing the best they can.

MUSHARRAF: I think the people who look at my security, who are around me, they protect me and my life with their own lives. I have no (unintelligible) against them at all and security measures were taken. Suicide bombers – totally security against suicide bombers really cannot be guaranteed by any force.

QURAISHI (on camera): Still a reassessment of the president’s security situation is underway. The prime minister presided over an emergency cabinet meeting to discuss the day’s events and Pakistani security forces remain on high alert as the investigation into this latest assassination attempt is just beginning.

Ash-Har Quraishi CNN Islamabad, Pakistan.

(END VIDEOTAPE)

KAGAN: The official color for this Christmas 2003 has been orange as America has been living under an orange alert.

With the latest on that let’s go to the Pentagon and our Barbara Starr – Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Daryn, we are now learning more about the results of what has happened since those Air France flights were cancelled between Washington – between Paris and Los Angeles yesterday.

Officials are now telling our correspondent Jeanne Meserve that a number of people have been questioned. No one is in custody at this time but there remains a good deal of concern.

Now on the three flights from Paris to Los Angeles International Airport that were cancelled, on the first flight we are told there were a handful of people on that manifest who were of specific concern to U.S. intelligence. At least some of those people did not show up for the flight possibly because they learned it was cancelled. Some did and were questioned.

One of the people that was of great concern on that first flight was someone who was said to have had a commercial pilot’s license but he did not show up for that flight so that person by our understanding has not yet been questioned.

On the second and third flights that were cancelled from Paris to Los Angeles some people that were listed again did not show up for the flight. What officials don’t know is if they learned that the flights were cancelled and simply did not come to the airport in Paris or if they had decided prior to that to not show up and not fly on those Air France flights.

But officials are still saying that they have very credible intelligence about the risk of a terrorist attack. There is a good deal of concern in the international aviation community. The U.S. is speaking with other countries about aviation security.

We are told also, of course, including the country of Mexico because of its contiguous air space with the United States. We are told that Mexican aviation authorities have assured the United States they are stepping up their security.

Homeland Security Secretary Tom Ridge at work most of the day here in Washington, the president continuing to be briefed by his advisors on the situation – Daryn.

KAGAN: Barbara Starr thank you for the latest there. We’ll see you a little bit later in the program.

Right now news from Afghanistan where a bomb exploded just outside a United Nations guest house in Kabul, the pre-dawn attack caused some damage but there were no casualties. The U.N. facility is located close to the presidential palace and the headquarters for the international security force.

In the Middle East, four Israelis were killed today when a suicide bomber struck at a busy intersection near Tel Aviv. A Palestinian group claimed responsibility.

Right before that an Islamic jihad leader was among the six Palestinians killed in an Israeli missile strike in Gaza.

Let’s bring in our Chris Burns who’s standing by now in Tel Aviv, Chris hello.

CHRIS BURNS, CNN CORRESPONDENT: Daryn, here is the site, a makeshift menorah here on the seventh night of Hanukah, this menorah sitting on the bus stand, a bus stand that was shattered by that suicide bomber just hours ago, four people dead plus the suicide bomber and 15 other people still hospitalized in the kind of scene we haven’t seen here really in the past two and a half months.

(BEGIN VIDEOTAPE)

BURNS (voice-over): The suicide bomber struck in the middle of rush hour shattering this bus stop in the Tel Aviv suburb of Petatigva (ph). The blast came shortly after an Israeli Apache helicopter rocketed a vehicle in Gaza City. There was no apparent link between the two attacks among the dead in Gaza Palestinian militants as well as civilians.

RA’ANAN GISSIN, SHARON SPOKESMAN: It’s not a question of restraint. It’s a question of being able to intercept and to arrest other people but this guy who was responsible for the death of six Israelis and 19 wounded who is the head of the Islamic Jihad get their order from Syria, from Ramadan Shala (ph) this guy was about to conduct a major, mega terrorist attack.

BURNS: For more than two months there were no suicide attacks or so-called targeted killings of Palestinian militants until now. SAEB ERAKAT, CHIEF PALESTINIAN NEGOTIATOR: We condemn this vicious cycle and we call upon President Bush personally to make sure that he must revive the American role and support this role in providing (unintelligible) time line and monitors on the ground.

BURNS: But the attacks came amid increasing clashes in the territories. Among the latest an ambush that killed two Israeli army officers in central Gaza and an Israeli incursion in the southern Gaza down of Rafa (ph). The Israeli army says they found an arms smuggling tunnel there. At least nine Palestinians were killed and dozens wounded including militants and civilians.

(END VIDEOTAPE)

BURNS: Now since that incursion the Palestinian Authority has broken off contacts with the Israeli government aimed at trying to start – trying to arrange the first face-to-face meeting between the Palestinian and the Israeli prime ministers.

That meeting was seen as a possible step toward starting again down the road toward peace contacts and possibly even the U.S.-led roadmap for peace. At this point it remains frozen – back to you Daryn.

KAGAN: For now that progress will have to wait. Chris Burns in Tel Aviv, Chris thank you for that.

BURNS: Thank you.

KAGAN: News of a deadly plane crash, a search for survivors, a charter jet believed to be carrying as many as 140 passengers crashes after takeoff.

Holiday cheer in Iraq interrupted by a series of attacks against coalition targets in Baghdad.

Plus, confirmation of a mad cow case in the U.S. and new details about the animal carrying the disease, the hard news ahead on WOLF BLITZER REPORTS.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Sometimes it’s like they care and they give us things and then after that it’s back to a normal routine.

(END VIDEO CLIP)

KAGAN: It’s not easy keeping your hopes high on the holidays when you don’t have a home to call your own. A year round struggle gets extra attention during the season of giving.

(COMMERCIAL BREAK)

KAGAN: Wire service reports say that at least 50 people are dead following the crash of a charter jet in the West African country of Benin. Reuters quotes Benin’s health minister as saying there are 22 survivors. Witnesses say the airliner had just taken off from a coastal airport when it plunged into the Atlantic Ocean.

(BEGIN VIDEOTAPE)

KAGAN (voice-over): It was bound for Beirut, many of it passengers headed home for Christmas but this jet barely made it off the ground. Just after takeoff from the tiny West African country of Benin the Boeing 727 crashed into the sea littering the coastline with wreckage and bodies. While parts of the plane lie in the surf others float 100 yards into the ocean, shorn off landing gear, a severed cockpit, and a ripped and tangled fuselage.

A witness says the plane hit a building at the end of the runway on takeoff causing it to crash. Airport security officials say at many as 140 passengers and crew were believed to be onboard. So far, though, bodies far outnumber survivors and residents wade in the surf to recover them. One man sat in the sand with blood running down his chest.

Family members of the victims gathered at the arrival lounge at Beirut Airport. Some wept. Others prayed to God to spare their loved ones.

UNIDENTIFIED MALE (through translator): We don’t know what’s going on. Nobody is supplying us with the correct information. My brother, uncle, and other relatives were on the plane.

KAGAN: One of the plane’s pilots who survived said the Boeing had been chartered by a Lebanese carrier called United Transit Airline. Most of the passengers were believed to be Lebanese.

(END VIDEOTAPE)

KAGAN: And now to Baghdad, which was rocked by a series of explosions just a short while ago. A U.S. military spokesman says two or three mortars or rockets were fired into what’s known as the Green Zone near the headquarters of the U.S.-led administration. There are no reports of casualties.

The holiday also began with a daring series of strikes. Our Rym Brahimi has the story from the Iraqi capital.

(BEGIN VIDEOTAPE)

RYM BRAHIMI, CNN CORRESPONDENT: It was a Christmas morning many here will remember. It started at 6:15 in the morning, a series of rocket-propelled grenade attacks, at least eight U.S. military sources say in the space of one hour were launched throughout the Iraqi capital.

Among the targets that were hit the Turkish residence. Turkish Embassy sources say that the residence was hit. There were also explosions around the compound in the early morning. The Sheraton Hotel, right by the Palestine Hotel, was targeted by three RPGs but hit by two. There was damage to the elevator shaft and the atrium and this only a few hours after a mortar round missed the hotel last night.

An apartment blast nearby caused two injuries among Iraqi civilians and some explosive device we’re told landed in the Green Zone where coalition forces have their headquarters.

(voice-over): U.S. forces have been spending Christmas on high alert for terror attacks, the U.S. military saying it had made a point of not letting its guard down at Christmas in order to counter the possibility of increased attacks that their intelligence had said would take place on the 24th, 25th and 26th.

Despite the launching of Operation Iron Grip throughout the Iraqi capital some U.S. soldiers were able to celebrate with a turkey. A group of them located at the Olympic Stadium told CNN that they felt they had good morale for the time being that also a thought for their fallen colleagues, those U.S. soldiers that have lost their lives in the past weeks and months of conflict in Iraq.

Rym Brahimi, CNN, reporting from Baghdad.

(END VIDEOTAPE)

KAGAN: Assassination attempt, terrorists launch a second attack against the president of Pakistan, why the leader has become a top terror target.

Terror threats and renewed concerns over weapons of mass destruction, find out what special action the U.S. military is taking to protect the nation.

And the confirmation, what tests show on the suspected case of mad cow disease in the U.S.

(COMMERCIAL BREAK)

KAGAN: And now the latest on mad cow disease. The Agriculture Department says that lab tests in Britain now confirm that a cow that was slaughtered this month in Washington State did have mad cow disease. Even before that conclusive word about a dozen countries had already stopped American beef imports.

Our Medical Correspondent Christy Feig has more.

(BEGIN VIDEOTAPE)

CHRISTY FEIG, CNN MEDICAL CORRESPONDENT (voice-over): USDA officials say the animal in question was about four years old and lived on this 4,000 cow dairy farm in Washington State.

UNIDENTIFIED FEMALE: None of the cattle on that farm will move off that farm. The owners of the farm have been very cooperative. FEIG: News Thursday a lab in England further confirmed the animal does indeed have mad cow disease will likely do more damage to the U.S. beef industry. Already about a dozen countries, including Japan, South Korea, and Mexico are suspending imports of U.S. beef.

Last year Japan imported $842 million of U.S. beef, South Korea $610 million and Mexico $595 million. The total value of U.S. beef exports last year was $2.5 billion.

Industry officials are asking countries not to overreact even though the U.S. bans beef from most other countries that have had mad cow disease.

CHANDLER KEYS, NATIONAL CATTLEMEN’S BEEF ASSOCIATION: What we’ll have to our trading partners and say is let’s do this based on risk and science and not on hysteria and scare tactics.

FEIG: Cows can’t transmit the disease within a herd. They can only be infected by eating feed that contains infected animal parts. In 1997, that became illegal in the U.S. but since this cow was only about four years old, experts say feed companies’ compliance with the ban may not be absolute.

Since it takes several years from the time the animal is infected until symptoms appear the USDA is now focusing its efforts on finding the farm or market where this cow was infected. Only then can they determine if there are more cows that could have the disease.

(on camera): In rare cases, humans can get sick from eating the brain or spinal cord tissue of an infected animal but not its meat. Even so, at least one large grocery chain in Oregon is already recalling ground beef because they buy their meat from one of the processing plants that received the infected animal’s meat.

Christy Feig, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Avoiding assassination again, Pakistan’s president escapes injury after a second attempt on his life in just 12 days. Why is he the terrorists’ new target?

Hope and survival, making it through the holidays when your only wish is charity.

(COMMERCIAL BREAK)

KAGAN: Welcome back to CNN.

It is an orange Christmas. We have new information for you on the terror threat.

First though let’s check out the latest headlines.

Three days after coastal California was hit with a major earthquake there were a series of aftershocks today. There were not reports of serious damage or injuries. Monday’s earthquake measuring 6.5 in magnitude was blamed for two deaths and an estimated $100 million in damage.

Los Angeles is having a wet Christmas. This is the first rainy Christmas Day there in 20 years. The same weather system is bringing snow to the local mountains and the Sierra Nevada in northern California.

And, at least ten people were killed today in Arab-Israeli violence. Four people died in a bomb attack at a Tel Aviv intersection. Police say the bomber also died. And six people died in Gaza where Israel launched an air strike. The dead included two leaders of the militant Islamic Jihad organization.

Let's get back to out top story now, and that is the continuing terror threat as America remains on alert. And bring in our Pentagon correspondent Barbara Starr who earlier in the program brought us some late-breaking details on the Orange alert. Barbara, hello once again.

STARR: Well, Daryn, at this this hour some progress against the terrorist threat that led the nation to Code Orange but no fewer worries. U.S. officials now saying some of the people they wanted to question never showed up for those canceled Air France flights.

(BEGIN VIDEOTAPE)

STARR (voice-over): Air France will resume regularly-scheduled flights between Paris and Los Angeles Friday. French officials said they failed to discover information linking several canceled flights to the threat of an al Qaeda attack.

PETER BERGEN, CNN TERRORISM ANALYST: I suspect that this is not a ruse. I don't think they're just playing with us because this seems such a large volume of information and such a large amount of concern. So this alert seems to be the real deal.

STARR: Air France canceled a total of six flights when U.S. gave Paris intelligence indicating at least one flight over Christmas might be infiltrated by an al Qaeda operative. Passengers were questioned, but no evidence of an attack being planned.

Still, plenty of worry. Since 9/11 the only acknowledged al Qaeda plot directed against the U.S. was Richard Reid's attempt two years ago at Christmas to blow up an airliner out of Paris using explosive in his shoes.

BERGEN: There is a pattern already of al Qaeda planning attacks around the Christmas and New Year season. Why would they be interested in doing that? I think, you know, one thing is you have gatherings of people, large numbers.

STARR: The U.S. remains on Code Orange alert. Airports in key facilities on watch. Administration officials say there is still credible information about a plane being taken under al Qaeda control abroad and then used to attack the United States. There is particular concern about flights scheduled from Mexico to the U.S. (END VIDEOTAPE)

STARR: And, Daryn, the alert is now expected to last into the new year. Military and other emergency weapons response teams will remain on call. Combat air patrol also continue. Surface-to-air missiles deployed, all ready to respond -- Daryn.

KAGAN: Barbara Starr in Washington, thank you for that.

At this hour, some progress against the terror threat that led the nation to Code Orange. But no fewer worries. U.S. officials now saying some people they wanted to question never showed up for those canceled Air France flights.

And we have much more ahead. Another very close call today for a key U.S. ally in the war against terrorism. Suicide bombers blew up two vehicles mere a motorcade carrying Pakistan's President Pervez Musharraf, killing 15 people and wounding dozens more.

Musharraf's car was damaged but he wasn't hurt. It was the second time this month that Musharraf has been targeted. The Pakistani leader appeared on state television after the attack, blaming Islamic extremist and vowing to continue the fight against terror.

Pakistan is a nuclear power in a dangerous region which makes stability there even more important. But it also is a constant source of concern to the U.S. Let's bring in now our national security correspondent David Ensor with more on that. David, hello.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Daryn, for some years now there's been concern that Pakistan might be the source of nuclear technology going to some unsavory regimes. In recent weeks and months, though, there's increasing evidence that that may be true.

(BEGIN VIDEOTAPE)

ENSOR (voice-over): The growing evidence Pakistani scientists may have helped Iran, North Korea and Libya acquire nuclear weapons technology is raising new concern in Washington about a key ally.

BUSH: We've had no better partner in fighting terror than President Musharraf.

ENSOR: When Iran recently shared information on its nuclear suppliers with international regulators, the evidence pointed to Iran getting designs and possibly actual uranium enrichment centrifuges from Pakistani scientists.

UNIDENTIFIED MALE: Pakistan is our ally. And in a way they're to being us in the back by helping countries like Iran, North Korea, perhaps even Libya, get the wherewithal to make nuclear weapons.

ENSOR: Pakistan's apparent assistance to Iran and the others took place in the '80s and '90s, well before Pakistan's President Musharraf took power. UNIDENTIFIED MALE: The horses bolted out of the barn. We're talking about exports that took place quite a number of years ago. Going forward, of course, we can emphasize the Pakistanis don't do any more of this. But what's already happened has happened.

ENSOR: Scientist whose may have sold nuclear secrets have been questioned by authorities in Pakistan this week, including Abdul Qadir Khan, father of the Pakistani bomb which was first detonated in 1998 to great celebration.

So far, though, none of the scientists has been charged with any crime.

UNIDENTIFIED MALE: They have to hold these people accountable so it sets out a clear warning to other Pakistanis that this will not be tolerated.

(END VIDEOTAPE)

ENSOR: The two attempts on Musharraf's life, today and last week, make the evidence against Pakistani scientists all the more worrying, since many analysts say if Musharraf should go an Islamic state could emerge in Pakistan and nuclear technology spreading could increase dramatically. So there's a lot at stake for Washington potentially in keeping General Musharraf alive -- Daryn.

KAGAN: Absolutely. And the bottom line here is General Musharraf the only -- or, soon to be just President Musharraf, the only thing standing between the U.S. and more nuclear proliferation in Pakistan, David?

ENSOR: Well there are a lot of more sensitive people in Pakistan. And it's likely that if he were to be killed, there would be another military government that would emerge.

But could it protect its leader? That's the question. And in the last elections, Islamist parties, fundamentalist parties did very well. So there's a good deal of concern about Pakistan at this point.

KAGAN: David Ensor, thanks for bring that important information to us on this Christmas Day. Appreciate it.

So that us to the question, is the Musharraf regime in danger and what dangers does Pakistan's nuclear pose? Husain Haqqani is a Pakistani journalist and a former diplomat. He served as adviser to three prime ministers. Right now he's a visiting scholar at the Carnegie Endowment. Husain Haqqani joins me from Washington.

Good evening, happy holidays, thanks for being here. Thanks for being here with us.

HUSAIN HAQQANI, CARNEGIE ENDOWMENT: Pleasure being here, Daryn.

KAGAN: What exactly is going on? Why suddenly is Pervez Musharraf such a huge target? HAQQANI: We must remember that General Musharraf actually antagonized the Islamists when he decided to side with the United States after 9/11. Until then, Pakistan had had a strategic policy of supporting the Taliban in Afghanistan and Islamic militants in its fight with India over Kashmir.

KAGAN: But that goes back two years.

HAQQANI: Those people feel that General Musharraf has been a traitor to their cause and they are definitely present both in Pakistan security services and among ordinary Pakistanis. And these people want him out of the way.

They think if they get him out of the way, they can effect a policy change in Pakistan and revert Pakistan back to the old policy of supporting Islamists.

KAGAN: I do want to get to what would be next if Musharraf was out of the way, but first I want to ask you, does his recent decision, his announcement, that he'll be stepping down as head of the army have anything to do with these assassinations attempts? Is he trying to appease those who don't support him?

HAQQANI: The general's problem is that he hates Pakistan's secular politicians more than he hates Islamist politicians. And the deal he did with the Islamist politicians in parliament was essentially at the expense of the secular politicians.

He thinks that way he will buy the Islamists support. But the Islamist politicians are more likely to be hand and glove with Islamic extremist, militants than they are to likely support General Musharraf in the long term.

KAGAN: David Ensor's report that we heard just before you on did a good job of explaining why Pervez Musharraf is so important for U.S. interest. If it turns out he is shoved aside or he is eliminated, who is next in line to fill that leadership vacuum in Pakistan?

HAQQANI: Well constitutionally, of course, the senate chairman is supposed to take over but I think that the successor to General Musharraf will be another general who will try to stabilize things. Whether that general appease the Islamists more or less than General Musharraf would again be a problem for U.S. policy.

Pakistan will remain a troubled and difficult ally for the United States in the near future. And the reason for that is Pakistan's preoccupation with India makes the Islamists more important to the Pakistani military than a close alliance with the United States. And that is the strategic shift that General Musharraf now has to introduce.

KAGAN: What can Pervez Musharraf at this point, what does he literally need to do to save his head at this point? And his power?

HAQQANI: For one he has to weed out Islamists from within the Pakistani military and security establishment. At the same time, he has to try and broaden the base of his support within the country.

At the moment, he's operating in a political vacuum. Islamists are baying for his blood. The secular politicians are not on his side because he won't do a deal with them. And in that whole process the Islamic extremists are able to swim in friendly waters.

What Musharraf has to do is make sure that the Islamist militants do not have the support of the ordinary people so that these people start snitching on the extremist rather than protecting them and allowing them to slip in and out of ordinary population centers.

KAGAN: Very dangerous times in your home country.

HAQQANI: It certainly is.

KAGAN: Husain Haqqani, thank you so much for joining us on this holiday. Appreciate it.

HAQQANI: Pleasure.

KAGAN: Well a lot of people are away for the holidays. How U.S. troops in Iraq celebrate Christmas when they're far from family and friends.

Predictions for a brighter future. We'll hear from a retired Air Force colonel who just returned from a visit to Iraq.

And homeless for the holidays. What Christmas is like when a shelter is your home.

But first, a quick look at other news making "Headlines Around the World."

(BEGIN VIDEOTAPE)

KAGAN (voice-over): Gas field disaster. A natural gas well accident in southwestern China released toxic fumes, killing at least 191 people. Chinese state say that thousands were forced to evacuate.

Mars shot marred. An initial attempt to retrieve data from a European Mars probe has failed. The British-built Beagle II failed to broadcast a signal confirming that it landed on the Red Planet last night. But scientists say they will try again later.

Monarch's message. Queen Elizabeth paid tribute to the troops in Iraq. In a break with tradition, part of the queen's annual Christmas message was recorded at a military barracks instead of a palace.

The pope at Christmas. Pope John Paul II called for world peace as he delivered his 26th Christmas address as leader of the Roman Catholic Church. the 83-year-old pontiff suffers from Parkinson's disease. He appeared to struggle as he repeated Christmas greetings in 62 languages.

Unseasonable greetings. Christmas is a summer holiday in the Southern Hemisphere. And thousands of tourists celebrated in swimming trunks and bikinis on Bondi Beach in Sydney, Australia. Who needs snow, they say, when you have sun, sand and surf?

That's our Christmas Day look "Around the World."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

KAGAN: Let's keep those Christmas greetings going. President Bush has written a Christmas letter to the members of the U.S. military. Take a peek, a portion of what he wrote. "Americans are blessed to have men and women like you protecting us and defending the cause of freedom across the world. May God bless and may He watch over our country."

Despite the continuing danger in a country far from home, U.S. troops in Iraq are doing what they can to keep Christmas in their hearts. Many troops ate turkey and trimmings, attending religious services, sang Christmas carols and made telephone calls home. Some senior officers performed tasks normally handled by lower-ranking soldiers in order to give them some time observe the holiday.

Iraq has seen an up surge in attacks since the capture of Saddam Hussein, but one expert see as much brighter future. William Mitchell directs the Center for International Education at Baylor University. He is a retired Air Force colonel and commanded a base in Turkey during the First Gulf War. He recently returned from a trip to Iraq and spoke with our Wolf Blitzer.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN ANCHOR: Colonel Mitchell, thanks for joining us. I know you're just bag from Iraq. First of all, tell us what you were doing there.

COL. WILLIAM MITCHELL (RET.) U.S. AIR FORCE: Well, we had a workshop, Baylor University put together a workshop for us to take 22 professors over into the northern Iraqi area and gather seven or eight different universities together and try to bring them up to date and explain to them as much as possible to a democratic from of freedom of information within a classroom.

BLITZER: What did you find out?

MITCHELL: What we found out is that they were extremely eager to learn and that the idea of the way we were actually presenting the materials were totally surprising and different to what they had experienced in the past under Saddam Hussein.

BLITZER: You were up in the north in the Dohuk (ph) area. Relatively safe up there. Certainly more than the Sunni Triangle. Are they receptive to U.S. involvement into their affairs?

MITCHELL: They absolutely are. They were extremely gracious and appreciative of what's happened there from the U.S. perspective. And now we actually went over the day Saddam was captured -- excuse me. Yes, the day Saddam was captured. And they were extremely ecstatic celebrating and we were part of a great ceremony in terms of their appreciation of what had happened by U.S. forces.

BLITZER: The capture of Saddam Hussein in the short term, what -- based on what you heard and what you saw, what's been the impact?

MITCHELL: Well, in the short term, there's been a relaxation of -- a sense for the Kurds, that is, in the northern area, a sense that the past is not going to return. It truly is a day of new Iraq. And a great sense of relief.

And I think that what surprised me about the general attitude was the fact that they're not dwelling on the past. They're no longer believing that -- that they're looking for -- looking backwards, but now they're look forward.

For the fist time they can plan something more than a couple of days ahead. In fact, most of the people they said that under Saddam they were going hour by hour and it was a state of tremendous stress for them.

BLITZER: But, did you emerge, Colonel, with a sense that Iraq can remain a united, unified country or that eventually it's going to split up into a Sunni area, a Shi'ite area, a Kurdish area as so many experts are predicting?

MITCHELL: Well I think you're absolutely right. Most experts are predicting that it will split up.

But I think it's -- in my case, I personally believe that a federation would work, a form of republic that would actually give semi-autonomy to the individual of five different units of so that are there. The cultural units.

But Kurdistan is willing. The northern area is certainly willing to go along with the federation.

BLITZER: And Kurdistan, the Kurds up in the north, if they were to form their own independent country that would make the Turks pretty crazy, at least in the short term.

MITCHELL: That would be extremely difficult for Turkey given Turkey's involvement with their own internal struggles with the Kurds in the southeastern part of the country. The Turks are of the Kurdish ancestry. They really don't want to see an independent Kurdistan because they see that as a threat to their national security. In fact, that would be an extremely difficult decision for all of us if that were to occur.

BLITZER: Very briefly, bottom line. Are you upbeat or pessimistic as you look towards Iraq's future?

MITCHELL: I am extremely optimistic about Iraq's future based on what we observed in the northern Iraqi area. And I think that there are some good things that are going be coming forward. Baylor's working towards making higher education a top priority for Iraq. And we're working with the CPA and other people in trying to make this thing work.

BLITZER: Colonel William Mitchell of Baylor University. Thanks for joining us.

MITCHELL: You're welcome.

(END VIDEOTAPE)

KAGAN: Family in other countries aren't the only ones suffering on this holiday. A look inside the lives of America's homeless.

And a television reporter gets up and close and personal with a north pole pet.

(COMMERCIAL BREAK)

KAGAN: For many the holidays are a time for caring and giving, especially to those who have fallen on hard times. And that includes the thousands of families homeless here in America. Our Jennifer Coggiola introduces us to one of those families.

(BEGIN VIDEOTAPE)

JENNIFER COGGIOLA, CNN CORRESPONDENT (voice-over): Tamikio Baily has lived in this room at D.C. Village Shelter for the past two months with her seven kids.

TAMIKIO BAILY, HOMELESS MOM: Oh, this is Tiana Baily (ph). She's 3-years-old. That's Takia (ph). She's 4-years-old.

COGGIOLA: And for the Baily children, Santa came early this year.

(on camera): Show me your stuff. Do you have toys around here?

(CROSSTALK)

COGGIOLA (voice-over): Tamikio's family exemplifies a growing number of the homeless population. And a frustrating misconception for those who work to end it.

NAN P. ROMAN, NATL. ALLIANCE TO END HOMELESSNESS: We think that homeless people are the men that we see on the street, people with mental illness, substance abuse disorders, physical ailments. And those people are indeed homeless but a large percentage of homeless people are also people living in families.

COGGIOLA: Homeless children battle a unique set of challenges.

UNIDENTIFIED FEMALE: I want to live in my own house.

ROMAN: What's very difficult for children is the lack of stability and not having a place to live, so they do often not as well in school, they have more illnesses. It's stress. COGGIOLA: How families get to the streets, another common misconception.

ROMAN: Perhaps they become ill or their car breaks down. They lose their job, they can't pay the rent one month, they get evicted. And it's so expensive and difficult to get back into housing once they've lost their housing.

COGGIOLA: Donations pour in during the holidays, something the Bailies are grateful for.

BAILY: This is my fist Christmas in a shelter, so it's been really good.

COGGIOLA: Happiness and generosity this mother wishes could continue year-round.

BAILY: Sometimes it's like they care and they give us things. And then after that, it's back to a normal routine.

ROMAN: It's a year-round situation. And while it's wonderful that people give so generously during the holiday season, we need people, also, to give when it's not the holiday season.

COGGIOLA: Nevertheless, the Baily children are grateful this year.

UNIDENTIFIED FEMALE: We want you all to say thank you to the people that came in to give you gifts, OK?

BAILY: There's nothing like your own home where you can cook for them and talk to them and play with their stuff. So I get depressed sometimes. But they keep me going. They're happy. I'm fine.

COGGIOLA (on camera): The latest study by the U.S. conference of mayors show the request for shelters by homeless families last year was up 15 percent. And of the total population of homeless, 40 percent of them were families were children.

Jennifer Coggiola, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Terror threats in the U.S. An update on the day's top stories ahead.

Plus, you know Dasher and Dancer and now one news reporter says she knows Blitzen. Oh, dear. A reindeer run-in you don't want to miss.

(COMMERCIAL BREAK)

KAGAN: Well this the time of year when television reporters stop stalking politicians and crime suspects and seek out those softer stories about things like Santa Claus, Christmas presents and holiday pageants. Today's "Picture of the Day" is a reminder that even holiday news has it hazards. Watch this.

This is reporter Meghan Stapleton of Alaska's TUU Television. She was showing off a baby reindeer named Blitzen when the animal jumped at her. We can tell you right now reporter Stapleton was hurt. Any newsmaker who's ever untruthful questions from overzealous reporters probably know exactly how that reindeer felt.

Well please joining us tomorrow, 5 Eastern for WOLF BLITZER REPORTS.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Assassination Attempt on Pakistani President Pervez Musharraf>