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American Morning

Palestinians Swarm Gaza, Vow Revenge for Death of Hamas Founder; Bush Accused of Ignoring Terrorism, fixating on Saddam, Iraq

Aired March 22, 2004 - 07:00   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.


BILL HEMMER, CNN ANCHOR: Good morning.
Palestinians swarm the streets of Gaza City. They vow all-out revenge against Israel for the killing of the founder of Hamas.

President Bush accused by a former member of his own administration of ignoring terrorism and fixating on Saddam Hussein and Iraq.

This morning national security adviser Condoleezza Rice will answer those charges.

And some of the best in college basketball going down in flames. March Madness? You bet. On this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome everybody.

A fierce political battle this morning over former counter- terrorism coordinator Richard Clarke and his charges that the president did, quote, "a terrible job fighting terrorism."

Not only will we hear from Condoleezza Rice this morning, we've also got our Jeff Greenfield looking at the potential political cost to the president.

HEMMER: Also lots to talk about ongoing in Pakistan. The military still trying to bring down a group of militants. Talk to a former leader in the region where the battle is ongoing. Find out if he thinks high level members of al Qaeda are truly trapped there.

And a lot to talk about, as well, from overseas -- and let's get overseas quickly now.

There are calls from the U.S. today for calm and restraint being directed to all sides in the Middle East conflict.

This follows an Israeli missile attack in Gaza City that killed the founder and spiritual leader of the Hamas organization, along with seven others at daybreak earlier today.

Already thousands of supporters mourn Sheikh Ahmed Yassin's funeral procession throughout the streets of Gaza City that was followed by funeral services at a local mosque.

And for more on the situation, Chris Burns who is at the Erez border crossing between Gaza and Israel -- joins us by telephone.

Chris, what are you seeing and hearing on the ground there?

CHRIS BURNS, CNN CORRESPONDENT: Bill, tension is high here at the border crossing.

We already saw evidence of retaliation by the Hamas militants. They say they fired a Kowtow (ph) rocket very close here to the Erez crossing.

No injuries reported, but also we heard another mortar falling nearby. That prompted Israeli officials to once again close this border crossing.

It's been open and shut numerous times today as they react to what they believe are advances by the Hamas militants to try to attack this border crossing.

Which they have, in the last two weeks repeatedly, including with suicide bombers. So, very tense.

They're allowing only a trickle of journalists through, but they're not allowing any Palestinians through, which causes greater hardship for those who work in Israel to try to make money for their families.

Meanwhile, inside Gaza, a lot of grief, a lot of rage in the streets. Tens of thousands of people taking to the streets. We saw smoke rising into the sky from Gaza, where people have lit bonfires in protest. General strike going on in the territories and calls for revenge.

Hamas saying that they want to shake Israel like an earthquake and this is all-out war, Bill.

HEMMER: Chris Burns, thanks, there in Gaza.

For some Israeli reaction to what's happening now from overseas, Alon Pinkas, the Israeli Consul General, here in New York City our guest on AMERICAN MORNING.

Mr. Ambassador, good to see you this morning.

ALON PINKAS, ISRAELI CONSUL GENERAL: Good to be here, Bill.

HEMMER: Talk about other matters. This was a man in his late 60s, confined to a wheelchair. Why was he targeted?

PINKAS: Well, because it was the right thing to do. As crude as that sounds. He's no spiritual leader.

You would think that you were talking about Mother Teresa or something. This is a man who embodies terrorism; this is a man who was arrested twice, who was arrested by the Egyptians to begin with. Arrested twice. He's masterminded the killings, the brutal killings of children, women, way up in the hundreds.

He is a force of incitement, a force of hatred towards Israel, towards America, towards the West, towards the Palestinian mainstream for that matter.

HEMMER: One of the chief Palestinian negotiators, Saeb Erakat, was on the line earlier today. Listen to how he phrased this killing and it's impact here.

(BEGIN AUDIO CLIP)

SAEB ERAKAT, CHIEF PALESTINIAN NEGOTIATOR: Fully condemn with as strongly as possible (UNINTELLIGIBLE) crime of assassinating Sheikh Yassin and this (UNINTELLIGIBLE) of Israeli government continues to (UNINTELLIGIBLE) escalation and confrontation.

(END AUDIOTAPE)

HEMMER: Escalation and confrontation. Is that what it is?

PINKAS: No, not really. Let me try and go deeper into this. There are two dimensions here.

There's a moral dimension and then there's a functional dimension or a foreign policy dimension, if you will.

Morally, it's the right thing to do. This man who has masterminded terrorism deserves to have met that fate.

Functionally, the question is -- and it's a legitimate question for you or for Saeb Erakat to ask -- what are the repercussions?

We have announced a disengagement from Gaza -- plan for lack or for -- in the absence of a Palestinian partner on the other side in Saeb Erakat, a man whom I personally very appreciate and a man of reason and moderation, has been in the Palestinian government since 1993, since the Oslo Accords.

They have had ample time and ample opportunity to contain this man, and the Hamas movement and the Islamic Jihad. This man threatens the Palestinian Authority, he has threatened everything the Palestinians have fought for and everything the Palestinians have succeeded in achieving.

So for us to do this is not just morally right, but from a functional and policy point of view, is the -- is a good step forward -- a good -- I know it sounds an oxymoron to -- to explain the killing of someone in terms of a positive development but in terms of the longer range peace process.

I'm talking about months, not decades. It was the right thing to do, and it's going to benefit both the Palestinians and Israelis. HEMMER: With regard to the roadmap to peace, is that something that's been thrown out the window at this point?

PINKAS: No, not at all. Not at all. The president enunciated a peace initiative as early as June 2002. President Bush that is. That -- that plan is called -- commonly referred to as the roadmap. The Palestinians have not lived up to their expectations and have not lived up to their obligations in the roadmap.

First and foremost, in terms of this gentleman, Sheikh Yassin, in the absence of the Palestinian partner we've decided to unilaterally do two things.

A, build a anti-suicide bombing barrier which is commonly referred to as the fence and you're familiar with that.

And B, unilaterally disengage from Gaza. Now, unilaterally, with the consent of the powers that be, so, again it's more complex than meets the eye. But this man, he is responsible for the deaths of at least 800...

HEMMER: In a word or two, is Israel ready for retaliation?

PINKAS: We're always ready for retaliation. One of the accusations, one of the criticisms today in Israel, as we speak, is was this necessary because now the Hamas will strike back?

The Hamas is always striking back. The Hamas is striking against pizza parlors, and against schools, and against busses, and against homes of the elderly, and against children on their way to school.

Are we embracing ourselves for some kind of retaliation? Yes we are.

HEMMER: Alon Pinkas, thanks for your time this morning.

PINKAS: Thank you, Bill.

HEMMER: To our viewers, Ambassador Hasan Rahman, Chief Palestinian representative here in the U.S., will be our guest. That's next hour for that side.

Now Soledad.

O'BRIEN: Other stories making news this morning, the head of the U.S. Central Command is meeting with Pakistani officials in Islamabad.

General John Abizaid's visit is described as routine by the U.S. and Pakistan.

The trip comes as the Pakistani Army, though, continues to battle suspected al Qaeda militants along the Afghan border.

The tribal leaders are trying to broker an end to the fighting. We've got more on this story coming up in just a few moments.

Here in the U.S., opening statements are set to get underway in the state trial of Oklahoma City bombing conspirator Terry Nichols.

Nichols was already sentenced to life in a federal prison back in a trial, rather, for the 1995 bombings. He could be sentenced to death if he is convicted in the state trial.

168 people died in the bombing of the Alfred P. Murrah Federal building.

In California, Scott Peterson's trial may be moved to another location again. Peterson's attorney Mark Geragos says too many potential jurors in Redwood City assume Peterson is guilty.

The trial has already been moved once from Peterson's hometown of Modesto. Peterson is accused of killing his wife Lacy and their unborn son.

And in sports, "March Madness" continues as two top-seeded teams are knocked out of the tournament. Number one Kentucky fell to the University of Alabama Birmingham yesterday.

The ninth-seeded UAV Blazers left the Wildcats in shock with some last minute defense, beating them 76 to 75. Top seeded Stanford was eliminated by Alabama on Saturday.

And that's great, because I had Stanford, and you had Kentucky to win it all.

HEMMER: That's right, so we're both in for it, right?

O'BRIEN: You knew the upsets were going to come. You just don't know when they're going to come.

O'BRIEN: Well, that was my team.

HEMMER: Yes. Sorry.

(WEATHER REPORT)

HEMMER: In a moment here, the president's judgment here on the war on terror questioned by a former aide. We'll hear about the possibility for political damage and what it all means today.

O'BRIEN: And Pakistani troops aren't backing off of their positions, but they are backing off of their claims about just who they've got cornered in mountain fighting. We'll take a look at that.

HEMMER: Also "The Passion of The Christ" finally knocked from the number one spot, and the movie that replaced it could not be any more different.

Still to come this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Calling them politically motivated, the White House is dismissing new charges being made against the administration by the former White House counter-terrorism coordinator.

In his book "Against All Enemies," which is being published today, Richard Clarke claims that President Bush ignored warnings about terrorism before the September 11 attacks and Clarke charges the Bush administration has mishandled the war on terror since the attacks.

Last night on CBS' "Sixty Minutes," Clarke said he found it outrageous that Mr. Bush is basing much of his reelection campaign on claims that he has done great things against terrorism.

(BEGIN VIDEO CLIP)

RICHARD CLARKE, AUTHOR: "AGAINST ALL ENEMIES: I think the way he has responded to al Qaeda, both before 9/11 by doing nothing, and by what he's done after 9/11, has made us less safe.

(END VIDEO CLIP)

O'BRIEN: Suzanne Malveaux at the White House for us this morning with more.

Suzanne, good morning.

SUZANNE MALVEAUX, WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

The White House is hitting back from all sides this morning.

Before that interview even aired, before the book was released, they put out communications director Dan Bartlett to make the case that the president did not ignore these threats prior to September 11.

Right after the interview aired then they put out detailed talking points, what the White House calls Clarke's "myths" as opposed to facts.

And this morning National Security Adviser Condoleezza Rice, in an op-ed piece in "The Washington Post," lays out the president's case, saying that the president acted quickly to establish a comprehensive plan against al Qaeda.

She goes on to say, "Once in office, we quickly began crafting a comprehensive new strategy to 'eliminate' the al Qaeda network. The president wanted more than occasional retaliatory cruise missile strikes. He told me he was tired of swatting flies."

That is one of the reasons they say they didn't hold this cabinet level meeting when Clarke had asked early on. They also say that there was not such a meeting that occurred between President Bush and Clarke in which the president, according to Clarke, pressured him to make the link between al Qaeda, 9/11 and Iraq.

Now, Soledad, as you know, this comes at a time -- a week --when Clarke will be testifying before the 9/11 Commission about what he knew prior to September 11. Also Bush and former Clinton administration officials will do the same -- Soledad.

O'BRIEN: Suzanne Malveaux at the White House for us. Suzanne thanks.

Let's take a look at the fallout now from Richard Clarke's book and his "60 Minutes" interview, as well dominating the political news as the week is just beginning.

Senior analyst Jeff Greenfield is here with a look at how it could effect both campaigns, as well as some distinctly non-partisan words from prominent senators.

Kind of a surprise, but we'll get to that in just a moment.

First, what do you think are the most damaging charges that Richard Clarke makes?

JEFF GREENFIELD, CNN SENIOR ANALYST: Actually, Soledad, I think the biggest problem is the sheer sweep of the indictment.

I mean, this is not former Treasury Secretary Paul O'Neill saying Bush was obsessed with Iraq.

This is the guy who was the White House terrorism fighter under four presidents saying the administration dismissed his warnings about al Qaeda, began aiming at Iraq literally while the fires from 9/11 were still burning, and has made America, as you heard, less safe.

In effect, Clarke is taking aim at the central theme of the Bush reelection ads. Steady leadership at a time of change and safer, stronger.

He is challenging them at their root and he knows full well he's taking dead aim at Bush the candidate. Just listen for a second.

(BEGIN VIDEO CLIP)

CLARKE: I find it outrageous that the president is running for reelection on the grounds that he's done such great things about terrorism. He ignored it. He ignored terrorism for months when maybe we could have done something to stop 9/11.

(END VIDEO CLIP)

O'BRIEN: So clearly his credibility and the fact that he is so credible is going to really be the biggest problem for the White House you think.

GREENFIELD: Yes and as you -- as Suzanne told us, they're pushing back very hard.

Substantively, their line of attack is, look, Bush did go after al Qaeda and the Taliban in 2001, not Iraq. They're also saying Clarke is bitter because he was demoted within the White House. This is, in effect, a Kerry campaign operative speaking and we've seen from sources that a lot of his advice they're going to say was bad before 9/11.

O'BRIEN: We certainly...

GREENFIELD: I guess the point I want to make here is we live in a post-modern world where -- where what is true seems less important than the political fall out.

I think you're going to see and hear today, particularly on talk radio, much less debate about whether Clarke is telling the truth and much more an argument that this is all political motives.

O'BRIEN: But here's a guy, though, who has, as you mentioned, by starting off by saying he served for four presidents.

I mean, he says I was a registered Republican back in 2000, I worked for President Bush -- the first one. I worked for President Reagan and also President Clinton, as well. But he's not necessarily a partisan figure who you can easily paint that way.

GREENFIELD: True, but I think they're going to try, and this is where I think the Kerry campaign has to be careful.

The more they embrace Richard Clarke, the more it's going to seem like a political operation. But they've got an interesting tightrope to walk on this one.

O'BRIEN: That is interesting. At the same time, I thought it was sort of an interesting that not everybody is jumping on the political opportunity that Richard Clarke's comments have made.

GREENFIELD: Yes, I thought this was astonishing yesterday on a Sunday surrogate salons, these talk shows.

You had four senators, two Republicans, and two Democrats. Each of them making arguments against their own candidates interests.

First Republican John McCain insisting he's not going to attack his friend John Kerry.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: John Kerry is a friend of mine. I don't choose to attack or disparage him, and I will not. But, I -- and that to me is important. I know that having a friend in Washington from another Party is not acceptable to some in Washington. I have two words for them: too bad.

(END VIDEO CLIP)

GREENFIELD: Second, Democrat Joe Lieberman responding to one of Richard Clarke's charges. Take this listen.

(BEGIN VIDEO CLIP) SEN. JOE LIEBERMAN (D), CONNECTICUT: The charge, if I hear it correctly, that Dick Clarke has made that the Bush administration was more focused on Iraq in the days after September 11 than on September 11 and getting back at the terrorists -- I see no basis for it.

(END VIDEO CLIP)

GREENFIELD: Third, Republican Chuck Hagel on whether he thinks John Kerry's record shows that Kerry is weak on defense.

(BEGIN VIDEO CLIP)

SEN. CHUCK HAGEL (R), NEBRASKA: No, I don't and I -- I tend to agree with John McCain on this. The facts just don't measure the rhetoric. I mean, you can take a guy like John Kerry who has been in the Senate for 19 years and go through that voting record. You can take it with Biden, Hagel -- any of us and pick out different, different votes, and then try to manufacture something around that.

(END VIDEO CLIP)

GREENFIELD: Fourth, Democrat Joe Biden on whether Bush's policies have encouraged the spread of terrorism.

(BEGIN VIDEO CLIP)

SEN. JOSEPH BIDEN (D), DELAWARE: I think it's unfair to blame the president for the spread of terror and the diffuseness of it. Even if he had followed the advice of me and many other people, I still think the same thing would have happened.

(END VIDEO CLIP)

GREENFIELD: So you have -- one at a time, so many political figures -- take to the airwaves to spread whatever political sound bite they think might help their presidential candidate and I think we should pause to recognize these four senators from different points of the spectrum who for now seem determined, Soledad, to resist the temptation and actually say what they think.

O'BRIEN: It's sort of refreshing and unusual. Or refreshing in its unusualness isn't it.

GREENFIELD: It actually made my Sunday, which shows you what I do most Sundays.

O'BRIEN: Well I don't want to disappoint you, but you know how long it's going to last.

GREENFIELD: Fair enough.

O'BRIEN: Jeff Greenfield -- as always, thanks Jeff. Appreciate it.

O'BRIEN: Coming up at the bottom of the hour we're going to talk with National Security Adviser Condoleezza Rice, that's at 7:30 Eastern time.

Tomorrow Richard Clarke is going to join us. He's our guest on AMERICAN MORNING -- Bill.

HEMMER: Similar issue here. Back with Jack Cafferty now on a Monday morning here.

Good morning, Jack.

JACK CAFFERTY, CNN ANCHOR: How you doing, Bill?

I think if I was President Bush this morning when the alarm went off I'd just turn over and go back to sleep because it ain't going to be worth getting up today.

Hamas is threatening retaliation against the United States in the wake of the assassination of Sheikh Yassin, fighting in an Afghan city -- vicious fighting in Afghanistan. He doesn't need that.

We've got the Richard Clarke allegations. No sign of al- Zawahiri, remember last week when the world stopped turning on its axis because the Pakistani Army had cornered al Qaeda's number two? Well, they haven't cornered anybody yet and it's five days later.

The Richard Clarke allegations -- how much damage are they going to do to the campaign? He alleges that when President Bush was told there's no connection between Iraq and al Qaeda, his memo came back with a notation "wrong answer, do it again."

Secretary of Defense Donald Rumsfeld allegedly suggested bombing targets in Iraq following September 11 and when he was told, well, the enemy is in Afghanistan, that's where the Taliban and al Qaeda are, Rumsfeld, according to Clarke, said but there are no good targets in Afghanistan, there are lots of good targets in Iraq.

This stuff is devastating, I would guess because Kerry's whole campaign thus far is built on the premise that Bush's leadership in the war on terror has been less than adequate. So the question is how much damage are the Clarke allegations going to do? My sense is there's going to be a lot.

You can e-mail us at am@cnn.com and we will read some of your stuff later on.

HEMMER: Dr. Rice up at about nine minutes till. A lot of these questions...

CAFFERTY: He should just go back to sleep. In fact, I wouldn't get up this morning.

HEMMER: Thanks Jack.

In a moment here there's a familiar face in a top place in the Fortune 500. Who is moving up and who is moving down when we come back here on a Monday edition -- busy day here. Back in a moment.

(COMMERCIAL BREAK)

HEMMER: All right, Andy is away this week, we miss him. But he's getting some good relaxation time with his family.

Susan Lisovicz here "Minding Your Business." Good morning.

SUSAN LISOVICZ, CNNfn CORRESPONDENT: Good morning Bill and Soledad.

HEMMER: Nice to have you back with us. Fortune 500, a lot of money this company this last year. Who got the lion's share?

LISOVICZ: Well, there's a reason why Wal-Mart's corporate logo is that ever-present smiley face, because Wal-Mart's revenues are pretty much what the equivalent GDP is for many countries around the globe.

HEMMER: Couple of countries.

LISOVICZ: Two hundred fifty-nine billion dollars. That's number one. The Fortune 500 list is always good to look for trends and themes and you can really see it play out in the top five.

What's number two? Well have you been to the gas station recently? Gas prices highest since 1991, that benefits oil companies like Exxon Mobil, which is a Dow 30 company. Also Chevron Texaco, Conoco-Phillips in the top ten.

But what's number three and four? GM and Ford which have benefited so nicely from the tax cuts, from the zero-percent financing and what are they selling? The gas-guzzling SUVs so you see a VAT (ph) changes.

There's also some interesting things that have played out in companies that have moved up on the list. Fortune 500 list. We've seen defense companies, for instance, interest -- for instance -- for instance Northrop Grumman, Halliburton there on the list. Comcast, that's been in the headlines recently trying to make a play for Disney.

Amazon.com obviously people buying more online so they moved up quite nicely. What's moved down? Well, also, something there you see. KMart there has moved down, but you know, that company was in the news recently because it reported its first profit in three years after merging from bankruptcy last year.

Cinergy is an energy company has been in trouble with the feds for things like pollution controls, Lucent on the list, Gateway, RJR Tobacco. So, some interesting things always on the Fortune 500 list.

O'BRIEN: It's always interesting to see the list but also I think just who's moving where because that really does dictate what...

LISOVICZ: Exactly, and you see it really play out with oil companies and the oil prices.

O'BRIEN: Let's talk a little bit about the market.

LISOVICZ: Well, talk about moving down -- you've really seen that play out as well with all three averages down for two straight weeks and of course down for the year.

That's what the Dow, Nasdaq, and S&P 500 did for the week. The Dow took a triple-digit loss on Friday. The Nasdaq and S&P 500 each losing one percent.

What's weighing on the markets? Well, we're in correction mode. Everything from terrorism, job market and just the point that maybe moving too far too fast.

O'BRIEN: All right, Susan, thanks -- that's really uplifting and encouraging. Thank you. For now.

All right we'll check in with you later this morning. Thank you so much.

Still to come this morning we're going to talk to National Security Adviser Condoleezza Rice about new allegations that the Bush administration has mishandled the war on terror.

That's ahead. Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

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Founder; Bush Accused of Ignoring Terrorism, fixating on Saddam, Iraq>


Aired March 22, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
Palestinians swarm the streets of Gaza City. They vow all-out revenge against Israel for the killing of the founder of Hamas.

President Bush accused by a former member of his own administration of ignoring terrorism and fixating on Saddam Hussein and Iraq.

This morning national security adviser Condoleezza Rice will answer those charges.

And some of the best in college basketball going down in flames. March Madness? You bet. On this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome everybody.

A fierce political battle this morning over former counter- terrorism coordinator Richard Clarke and his charges that the president did, quote, "a terrible job fighting terrorism."

Not only will we hear from Condoleezza Rice this morning, we've also got our Jeff Greenfield looking at the potential political cost to the president.

HEMMER: Also lots to talk about ongoing in Pakistan. The military still trying to bring down a group of militants. Talk to a former leader in the region where the battle is ongoing. Find out if he thinks high level members of al Qaeda are truly trapped there.

And a lot to talk about, as well, from overseas -- and let's get overseas quickly now.

There are calls from the U.S. today for calm and restraint being directed to all sides in the Middle East conflict.

This follows an Israeli missile attack in Gaza City that killed the founder and spiritual leader of the Hamas organization, along with seven others at daybreak earlier today.

Already thousands of supporters mourn Sheikh Ahmed Yassin's funeral procession throughout the streets of Gaza City that was followed by funeral services at a local mosque.

And for more on the situation, Chris Burns who is at the Erez border crossing between Gaza and Israel -- joins us by telephone.

Chris, what are you seeing and hearing on the ground there?

CHRIS BURNS, CNN CORRESPONDENT: Bill, tension is high here at the border crossing.

We already saw evidence of retaliation by the Hamas militants. They say they fired a Kowtow (ph) rocket very close here to the Erez crossing.

No injuries reported, but also we heard another mortar falling nearby. That prompted Israeli officials to once again close this border crossing.

It's been open and shut numerous times today as they react to what they believe are advances by the Hamas militants to try to attack this border crossing.

Which they have, in the last two weeks repeatedly, including with suicide bombers. So, very tense.

They're allowing only a trickle of journalists through, but they're not allowing any Palestinians through, which causes greater hardship for those who work in Israel to try to make money for their families.

Meanwhile, inside Gaza, a lot of grief, a lot of rage in the streets. Tens of thousands of people taking to the streets. We saw smoke rising into the sky from Gaza, where people have lit bonfires in protest. General strike going on in the territories and calls for revenge.

Hamas saying that they want to shake Israel like an earthquake and this is all-out war, Bill.

HEMMER: Chris Burns, thanks, there in Gaza.

For some Israeli reaction to what's happening now from overseas, Alon Pinkas, the Israeli Consul General, here in New York City our guest on AMERICAN MORNING.

Mr. Ambassador, good to see you this morning.

ALON PINKAS, ISRAELI CONSUL GENERAL: Good to be here, Bill.

HEMMER: Talk about other matters. This was a man in his late 60s, confined to a wheelchair. Why was he targeted?

PINKAS: Well, because it was the right thing to do. As crude as that sounds. He's no spiritual leader.

You would think that you were talking about Mother Teresa or something. This is a man who embodies terrorism; this is a man who was arrested twice, who was arrested by the Egyptians to begin with. Arrested twice. He's masterminded the killings, the brutal killings of children, women, way up in the hundreds.

He is a force of incitement, a force of hatred towards Israel, towards America, towards the West, towards the Palestinian mainstream for that matter.

HEMMER: One of the chief Palestinian negotiators, Saeb Erakat, was on the line earlier today. Listen to how he phrased this killing and it's impact here.

(BEGIN AUDIO CLIP)

SAEB ERAKAT, CHIEF PALESTINIAN NEGOTIATOR: Fully condemn with as strongly as possible (UNINTELLIGIBLE) crime of assassinating Sheikh Yassin and this (UNINTELLIGIBLE) of Israeli government continues to (UNINTELLIGIBLE) escalation and confrontation.

(END AUDIOTAPE)

HEMMER: Escalation and confrontation. Is that what it is?

PINKAS: No, not really. Let me try and go deeper into this. There are two dimensions here.

There's a moral dimension and then there's a functional dimension or a foreign policy dimension, if you will.

Morally, it's the right thing to do. This man who has masterminded terrorism deserves to have met that fate.

Functionally, the question is -- and it's a legitimate question for you or for Saeb Erakat to ask -- what are the repercussions?

We have announced a disengagement from Gaza -- plan for lack or for -- in the absence of a Palestinian partner on the other side in Saeb Erakat, a man whom I personally very appreciate and a man of reason and moderation, has been in the Palestinian government since 1993, since the Oslo Accords.

They have had ample time and ample opportunity to contain this man, and the Hamas movement and the Islamic Jihad. This man threatens the Palestinian Authority, he has threatened everything the Palestinians have fought for and everything the Palestinians have succeeded in achieving.

So for us to do this is not just morally right, but from a functional and policy point of view, is the -- is a good step forward -- a good -- I know it sounds an oxymoron to -- to explain the killing of someone in terms of a positive development but in terms of the longer range peace process.

I'm talking about months, not decades. It was the right thing to do, and it's going to benefit both the Palestinians and Israelis. HEMMER: With regard to the roadmap to peace, is that something that's been thrown out the window at this point?

PINKAS: No, not at all. Not at all. The president enunciated a peace initiative as early as June 2002. President Bush that is. That -- that plan is called -- commonly referred to as the roadmap. The Palestinians have not lived up to their expectations and have not lived up to their obligations in the roadmap.

First and foremost, in terms of this gentleman, Sheikh Yassin, in the absence of the Palestinian partner we've decided to unilaterally do two things.

A, build a anti-suicide bombing barrier which is commonly referred to as the fence and you're familiar with that.

And B, unilaterally disengage from Gaza. Now, unilaterally, with the consent of the powers that be, so, again it's more complex than meets the eye. But this man, he is responsible for the deaths of at least 800...

HEMMER: In a word or two, is Israel ready for retaliation?

PINKAS: We're always ready for retaliation. One of the accusations, one of the criticisms today in Israel, as we speak, is was this necessary because now the Hamas will strike back?

The Hamas is always striking back. The Hamas is striking against pizza parlors, and against schools, and against busses, and against homes of the elderly, and against children on their way to school.

Are we embracing ourselves for some kind of retaliation? Yes we are.

HEMMER: Alon Pinkas, thanks for your time this morning.

PINKAS: Thank you, Bill.

HEMMER: To our viewers, Ambassador Hasan Rahman, Chief Palestinian representative here in the U.S., will be our guest. That's next hour for that side.

Now Soledad.

O'BRIEN: Other stories making news this morning, the head of the U.S. Central Command is meeting with Pakistani officials in Islamabad.

General John Abizaid's visit is described as routine by the U.S. and Pakistan.

The trip comes as the Pakistani Army, though, continues to battle suspected al Qaeda militants along the Afghan border.

The tribal leaders are trying to broker an end to the fighting. We've got more on this story coming up in just a few moments.

Here in the U.S., opening statements are set to get underway in the state trial of Oklahoma City bombing conspirator Terry Nichols.

Nichols was already sentenced to life in a federal prison back in a trial, rather, for the 1995 bombings. He could be sentenced to death if he is convicted in the state trial.

168 people died in the bombing of the Alfred P. Murrah Federal building.

In California, Scott Peterson's trial may be moved to another location again. Peterson's attorney Mark Geragos says too many potential jurors in Redwood City assume Peterson is guilty.

The trial has already been moved once from Peterson's hometown of Modesto. Peterson is accused of killing his wife Lacy and their unborn son.

And in sports, "March Madness" continues as two top-seeded teams are knocked out of the tournament. Number one Kentucky fell to the University of Alabama Birmingham yesterday.

The ninth-seeded UAV Blazers left the Wildcats in shock with some last minute defense, beating them 76 to 75. Top seeded Stanford was eliminated by Alabama on Saturday.

And that's great, because I had Stanford, and you had Kentucky to win it all.

HEMMER: That's right, so we're both in for it, right?

O'BRIEN: You knew the upsets were going to come. You just don't know when they're going to come.

O'BRIEN: Well, that was my team.

HEMMER: Yes. Sorry.

(WEATHER REPORT)

HEMMER: In a moment here, the president's judgment here on the war on terror questioned by a former aide. We'll hear about the possibility for political damage and what it all means today.

O'BRIEN: And Pakistani troops aren't backing off of their positions, but they are backing off of their claims about just who they've got cornered in mountain fighting. We'll take a look at that.

HEMMER: Also "The Passion of The Christ" finally knocked from the number one spot, and the movie that replaced it could not be any more different.

Still to come this hour on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Calling them politically motivated, the White House is dismissing new charges being made against the administration by the former White House counter-terrorism coordinator.

In his book "Against All Enemies," which is being published today, Richard Clarke claims that President Bush ignored warnings about terrorism before the September 11 attacks and Clarke charges the Bush administration has mishandled the war on terror since the attacks.

Last night on CBS' "Sixty Minutes," Clarke said he found it outrageous that Mr. Bush is basing much of his reelection campaign on claims that he has done great things against terrorism.

(BEGIN VIDEO CLIP)

RICHARD CLARKE, AUTHOR: "AGAINST ALL ENEMIES: I think the way he has responded to al Qaeda, both before 9/11 by doing nothing, and by what he's done after 9/11, has made us less safe.

(END VIDEO CLIP)

O'BRIEN: Suzanne Malveaux at the White House for us this morning with more.

Suzanne, good morning.

SUZANNE MALVEAUX, WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

The White House is hitting back from all sides this morning.

Before that interview even aired, before the book was released, they put out communications director Dan Bartlett to make the case that the president did not ignore these threats prior to September 11.

Right after the interview aired then they put out detailed talking points, what the White House calls Clarke's "myths" as opposed to facts.

And this morning National Security Adviser Condoleezza Rice, in an op-ed piece in "The Washington Post," lays out the president's case, saying that the president acted quickly to establish a comprehensive plan against al Qaeda.

She goes on to say, "Once in office, we quickly began crafting a comprehensive new strategy to 'eliminate' the al Qaeda network. The president wanted more than occasional retaliatory cruise missile strikes. He told me he was tired of swatting flies."

That is one of the reasons they say they didn't hold this cabinet level meeting when Clarke had asked early on. They also say that there was not such a meeting that occurred between President Bush and Clarke in which the president, according to Clarke, pressured him to make the link between al Qaeda, 9/11 and Iraq.

Now, Soledad, as you know, this comes at a time -- a week --when Clarke will be testifying before the 9/11 Commission about what he knew prior to September 11. Also Bush and former Clinton administration officials will do the same -- Soledad.

O'BRIEN: Suzanne Malveaux at the White House for us. Suzanne thanks.

Let's take a look at the fallout now from Richard Clarke's book and his "60 Minutes" interview, as well dominating the political news as the week is just beginning.

Senior analyst Jeff Greenfield is here with a look at how it could effect both campaigns, as well as some distinctly non-partisan words from prominent senators.

Kind of a surprise, but we'll get to that in just a moment.

First, what do you think are the most damaging charges that Richard Clarke makes?

JEFF GREENFIELD, CNN SENIOR ANALYST: Actually, Soledad, I think the biggest problem is the sheer sweep of the indictment.

I mean, this is not former Treasury Secretary Paul O'Neill saying Bush was obsessed with Iraq.

This is the guy who was the White House terrorism fighter under four presidents saying the administration dismissed his warnings about al Qaeda, began aiming at Iraq literally while the fires from 9/11 were still burning, and has made America, as you heard, less safe.

In effect, Clarke is taking aim at the central theme of the Bush reelection ads. Steady leadership at a time of change and safer, stronger.

He is challenging them at their root and he knows full well he's taking dead aim at Bush the candidate. Just listen for a second.

(BEGIN VIDEO CLIP)

CLARKE: I find it outrageous that the president is running for reelection on the grounds that he's done such great things about terrorism. He ignored it. He ignored terrorism for months when maybe we could have done something to stop 9/11.

(END VIDEO CLIP)

O'BRIEN: So clearly his credibility and the fact that he is so credible is going to really be the biggest problem for the White House you think.

GREENFIELD: Yes and as you -- as Suzanne told us, they're pushing back very hard.

Substantively, their line of attack is, look, Bush did go after al Qaeda and the Taliban in 2001, not Iraq. They're also saying Clarke is bitter because he was demoted within the White House. This is, in effect, a Kerry campaign operative speaking and we've seen from sources that a lot of his advice they're going to say was bad before 9/11.

O'BRIEN: We certainly...

GREENFIELD: I guess the point I want to make here is we live in a post-modern world where -- where what is true seems less important than the political fall out.

I think you're going to see and hear today, particularly on talk radio, much less debate about whether Clarke is telling the truth and much more an argument that this is all political motives.

O'BRIEN: But here's a guy, though, who has, as you mentioned, by starting off by saying he served for four presidents.

I mean, he says I was a registered Republican back in 2000, I worked for President Bush -- the first one. I worked for President Reagan and also President Clinton, as well. But he's not necessarily a partisan figure who you can easily paint that way.

GREENFIELD: True, but I think they're going to try, and this is where I think the Kerry campaign has to be careful.

The more they embrace Richard Clarke, the more it's going to seem like a political operation. But they've got an interesting tightrope to walk on this one.

O'BRIEN: That is interesting. At the same time, I thought it was sort of an interesting that not everybody is jumping on the political opportunity that Richard Clarke's comments have made.

GREENFIELD: Yes, I thought this was astonishing yesterday on a Sunday surrogate salons, these talk shows.

You had four senators, two Republicans, and two Democrats. Each of them making arguments against their own candidates interests.

First Republican John McCain insisting he's not going to attack his friend John Kerry.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: John Kerry is a friend of mine. I don't choose to attack or disparage him, and I will not. But, I -- and that to me is important. I know that having a friend in Washington from another Party is not acceptable to some in Washington. I have two words for them: too bad.

(END VIDEO CLIP)

GREENFIELD: Second, Democrat Joe Lieberman responding to one of Richard Clarke's charges. Take this listen.

(BEGIN VIDEO CLIP) SEN. JOE LIEBERMAN (D), CONNECTICUT: The charge, if I hear it correctly, that Dick Clarke has made that the Bush administration was more focused on Iraq in the days after September 11 than on September 11 and getting back at the terrorists -- I see no basis for it.

(END VIDEO CLIP)

GREENFIELD: Third, Republican Chuck Hagel on whether he thinks John Kerry's record shows that Kerry is weak on defense.

(BEGIN VIDEO CLIP)

SEN. CHUCK HAGEL (R), NEBRASKA: No, I don't and I -- I tend to agree with John McCain on this. The facts just don't measure the rhetoric. I mean, you can take a guy like John Kerry who has been in the Senate for 19 years and go through that voting record. You can take it with Biden, Hagel -- any of us and pick out different, different votes, and then try to manufacture something around that.

(END VIDEO CLIP)

GREENFIELD: Fourth, Democrat Joe Biden on whether Bush's policies have encouraged the spread of terrorism.

(BEGIN VIDEO CLIP)

SEN. JOSEPH BIDEN (D), DELAWARE: I think it's unfair to blame the president for the spread of terror and the diffuseness of it. Even if he had followed the advice of me and many other people, I still think the same thing would have happened.

(END VIDEO CLIP)

GREENFIELD: So you have -- one at a time, so many political figures -- take to the airwaves to spread whatever political sound bite they think might help their presidential candidate and I think we should pause to recognize these four senators from different points of the spectrum who for now seem determined, Soledad, to resist the temptation and actually say what they think.

O'BRIEN: It's sort of refreshing and unusual. Or refreshing in its unusualness isn't it.

GREENFIELD: It actually made my Sunday, which shows you what I do most Sundays.

O'BRIEN: Well I don't want to disappoint you, but you know how long it's going to last.

GREENFIELD: Fair enough.

O'BRIEN: Jeff Greenfield -- as always, thanks Jeff. Appreciate it.

O'BRIEN: Coming up at the bottom of the hour we're going to talk with National Security Adviser Condoleezza Rice, that's at 7:30 Eastern time.

Tomorrow Richard Clarke is going to join us. He's our guest on AMERICAN MORNING -- Bill.

HEMMER: Similar issue here. Back with Jack Cafferty now on a Monday morning here.

Good morning, Jack.

JACK CAFFERTY, CNN ANCHOR: How you doing, Bill?

I think if I was President Bush this morning when the alarm went off I'd just turn over and go back to sleep because it ain't going to be worth getting up today.

Hamas is threatening retaliation against the United States in the wake of the assassination of Sheikh Yassin, fighting in an Afghan city -- vicious fighting in Afghanistan. He doesn't need that.

We've got the Richard Clarke allegations. No sign of al- Zawahiri, remember last week when the world stopped turning on its axis because the Pakistani Army had cornered al Qaeda's number two? Well, they haven't cornered anybody yet and it's five days later.

The Richard Clarke allegations -- how much damage are they going to do to the campaign? He alleges that when President Bush was told there's no connection between Iraq and al Qaeda, his memo came back with a notation "wrong answer, do it again."

Secretary of Defense Donald Rumsfeld allegedly suggested bombing targets in Iraq following September 11 and when he was told, well, the enemy is in Afghanistan, that's where the Taliban and al Qaeda are, Rumsfeld, according to Clarke, said but there are no good targets in Afghanistan, there are lots of good targets in Iraq.

This stuff is devastating, I would guess because Kerry's whole campaign thus far is built on the premise that Bush's leadership in the war on terror has been less than adequate. So the question is how much damage are the Clarke allegations going to do? My sense is there's going to be a lot.

You can e-mail us at am@cnn.com and we will read some of your stuff later on.

HEMMER: Dr. Rice up at about nine minutes till. A lot of these questions...

CAFFERTY: He should just go back to sleep. In fact, I wouldn't get up this morning.

HEMMER: Thanks Jack.

In a moment here there's a familiar face in a top place in the Fortune 500. Who is moving up and who is moving down when we come back here on a Monday edition -- busy day here. Back in a moment.

(COMMERCIAL BREAK)

HEMMER: All right, Andy is away this week, we miss him. But he's getting some good relaxation time with his family.

Susan Lisovicz here "Minding Your Business." Good morning.

SUSAN LISOVICZ, CNNfn CORRESPONDENT: Good morning Bill and Soledad.

HEMMER: Nice to have you back with us. Fortune 500, a lot of money this company this last year. Who got the lion's share?

LISOVICZ: Well, there's a reason why Wal-Mart's corporate logo is that ever-present smiley face, because Wal-Mart's revenues are pretty much what the equivalent GDP is for many countries around the globe.

HEMMER: Couple of countries.

LISOVICZ: Two hundred fifty-nine billion dollars. That's number one. The Fortune 500 list is always good to look for trends and themes and you can really see it play out in the top five.

What's number two? Well have you been to the gas station recently? Gas prices highest since 1991, that benefits oil companies like Exxon Mobil, which is a Dow 30 company. Also Chevron Texaco, Conoco-Phillips in the top ten.

But what's number three and four? GM and Ford which have benefited so nicely from the tax cuts, from the zero-percent financing and what are they selling? The gas-guzzling SUVs so you see a VAT (ph) changes.

There's also some interesting things that have played out in companies that have moved up on the list. Fortune 500 list. We've seen defense companies, for instance, interest -- for instance -- for instance Northrop Grumman, Halliburton there on the list. Comcast, that's been in the headlines recently trying to make a play for Disney.

Amazon.com obviously people buying more online so they moved up quite nicely. What's moved down? Well, also, something there you see. KMart there has moved down, but you know, that company was in the news recently because it reported its first profit in three years after merging from bankruptcy last year.

Cinergy is an energy company has been in trouble with the feds for things like pollution controls, Lucent on the list, Gateway, RJR Tobacco. So, some interesting things always on the Fortune 500 list.

O'BRIEN: It's always interesting to see the list but also I think just who's moving where because that really does dictate what...

LISOVICZ: Exactly, and you see it really play out with oil companies and the oil prices.

O'BRIEN: Let's talk a little bit about the market.

LISOVICZ: Well, talk about moving down -- you've really seen that play out as well with all three averages down for two straight weeks and of course down for the year.

That's what the Dow, Nasdaq, and S&P 500 did for the week. The Dow took a triple-digit loss on Friday. The Nasdaq and S&P 500 each losing one percent.

What's weighing on the markets? Well, we're in correction mode. Everything from terrorism, job market and just the point that maybe moving too far too fast.

O'BRIEN: All right, Susan, thanks -- that's really uplifting and encouraging. Thank you. For now.

All right we'll check in with you later this morning. Thank you so much.

Still to come this morning we're going to talk to National Security Adviser Condoleezza Rice about new allegations that the Bush administration has mishandled the war on terror.

That's ahead. Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

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Founder; Bush Accused of Ignoring Terrorism, fixating on Saddam, Iraq>