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CNN Live Today

In Iraq, Two Roadside Bombs Injure at Least Two People; War on Terror in Southeast Asia

Aired April 01, 2004 - 10:00   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, HOST: We'll get started here in Atlanta. We are at CNN headquarters. I'm Daryn Kagan, good morning. We start with the headlines.
A convoy of fuel tankers came under attack today near Baghdad; one truck driver was wounded by the roadside bomb. It was the second such attack in less than an hour on that stretch of highway. An Iraqi civilian was hurt in the first blast. A live report from Baghdad is coming up in just a moment.

On Capitol Hill, a hearing on al Qaeda is underway in the House, with the Madrid train bombing a prominent focus. Among those testifying is J. Cofer Black, a senior counterterrorism official at the State Department. Three suspects in the March 11 train attacks are expected to be arraigned today in Madrid.

In Madison, Wisconsin so many unanswered questions. That is what a friend of Audrey Seiler says about Seiler's mysterious four-day disappearance. The college sophomore was found alive and in fairly good shape yesterday. A live update on that investigation is just ahead as well.

And badly wounded soldier Jessica Lynch was rescued in Iraq exactly one year ago. Her injuries still require daily therapy. Lynch tells the Associated Press that her future is undecided, including the recent postponement of her June wedding.

The first hour of CNN LIVE TODAY begins right now.

We are going to begin this hour in Iraq, where more violence has erupted on this day after a gristly attack killed four U.S. civilian contractors. Today, two roadside bombs injured at least two people, but the real target may have been a fuel convoy truck that was under U.S. militory -- U.S. military escort.

In the Capitol, CNN's Jim Clancy -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Good evening from Baghdad. Daryn, I'm going to get to that incident in a moment. First, let's flashback to Fallujah on Wednesday, the horrific scenes around that vehicle, in which four security guards were killed; they were American citizens. An angry mob pulling their charred bodies from the vehicles and dismembering them and then hanging them on public display.

That has upset a lot of people, some Iraqis here in Baghdad excusing it as a reaction to the U.S. occupation. Other though, expressing shock that the Americans were targeted. They were, after all, civilians.

Now, we had a response today from Paul Bremer, civilian administrator here in Baghdad. He was speaking to a group of cadets about that incident. And he had this to say.

(BEGIN VIDEO CLIP)

PAUL BREMER, IRAQI CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. They violate the tenets including Islam, as well as the foundations of civilized society. Their deaths will not go unpunished.

(END VIDEO CLIP)

CLANCY: All right. That was Paul Bremer. And it should be noted that as he said some -- had some tough language, there, so, too, did a spokesperson here in Baghdad, saying that Fallujah, one way or another would be pacified. That the U.S. wasn't going to back away from that trouble spot in the heart of the Sunni Triangle.

Meantime, the attacks continued. As you noted, it was a fuel convoy making its way southward. It was a northway -- northwest Baghdad. First one roadside bomb exploded that injured an Iraqi civilian. The convoy pulled up to a halt just as U.S. military escort -- military police were sending out a robot to search for any more unexploded roadside bombs. Another blast tore through the area.

It did not strike the fuel trucks themselves, the obvious target in all of this. There was no fire that was caused by it. But there was some shattered windshields and one driver had to be treated for either shrapnel or glass wounds that he received. It's not clear yet whether he was a U.S. citizen, a U.S. soldier, or more likely a contractor, perhaps a foreign national.

So that, as you see it, another difficult day for the U.S. military here in Iraq. Even as they're trying to come to grips with those horrific scenes that played out yesterday from Fallujah.

Jim Clancy in Baghdad.

CLANCY: Daryn.

KAGAN: Yes, Jim thank you.

We're going to have a chance in just a few minutes to talk with Dan Senor, the Coalition Provisional Authority. Also, Brigadier General Mark Kimmitt about what is being done to search for the people who took place in that attack.

Now we move on, though, to the war in terror on Southeast Asia and the discovery of what's being described as a blueprint to take over the world. Anti-terror experts are pouring over a 44-page playbook of sorts. It was found in a safe house used by an al Qaeda- linked group.

Our bureau chief in Jakarta Maria Ressa has the exclusive details on what could be a major find in the war on terror -- Maria.

MARIA RESSA, CNN BUREAU CHIEF: Daryn, the document is unique, according to terrorism analysts. There have been about 30 or so al Qaeda training manuals that have been discovered around the world, widely disseminated. These were the how to, the nuts and bolts of terrorism: how to make a bomb, how to target an assassination.

This document that they found here in Indonesia had a much broader perspective -- an ideological perspective; call it a blueprint for global domination. It's for Jama'a Islamia, al Qaeda's arm here in Southeast Asia, a group that staged two attacks here funded by al Qaeda since 9/11. Written in Arabic and Indonesian, this document talks about two divisions: an operations arm, which carries out terrorist attacks; and an administrative group governed by a constitution with a well-defined leadership structure.

So how is it going to take over the world? It does it in ages, according to this document. First by molding the individual then the society. And then taking over the world after it knocks off secular governments. And the overall goal is to restore the Islamic Caliphate.

Back to you, Daryn.

KAGAN: Maria Ressa in Jakarta. And Maria is going to have a lot more on her exclusive story this evening on "ANDERSON COOPER 360." That's 7:00 Eastern, 4:00 Pacific right here on CNN.

Now, another front on the nation's war on terror, federal government had vowed to have a terror watch list in place by the end of March. Well, if you look at your calendar, it's now the first of April and a list is in place. But there is still a lot of work to be done on the list.

Our justice correspondent Kelly Arena has that story.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): The goal, to keep known terrorists, like two of the September 11 hijackers from ever getting into the United States again. How? By combining information about suspects gathered by any U.S. intelligence and law enforcement agency into a single terror watch list. Two and a half years after the attacks, there now is one. But officials admit, it's a work in progress.

DONNA BUCELLA, TERRORIST SCREENING CTR: We now have a single data base, which is updated daily and unclassified law enforcement sensitive, containing identifying information of known or suspected terrorists.

ARENA: The Terrorist Screening Center, housed within the FBI, currently has about 55,000 names on its new consolidated, terror watch list. It's accessible to everyone from customs and border patrol agents to local police, but not instantaneously. REP. JIM TURNER (D), TEXAS: If you have the 1-800 number and you are a law enforcement officer or a federal official, you can call in and you can give them a name, and they will run a search on the database. But they still do not have the ability to access that in real time.

ARENA: What's more, the list is incomplete. Some agencies still have not handed overall their names. And despite an effort to include identifying information, some travelers are still mistaken for terrorist whose share the same name.

ASIF IOBAL, TRAVELER: It was very embarrassing. I mean I was just discriminated on the basis of my name. And that has been repeatedly going on.

ARENA (on camera): Officials say they will put a mechanism in place to resolve that issue. And they promise a complete and fully automated list by tend of the year.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: We move on now to Madison, Wisconsin. That is where a search is to resume this morning for clues in the mysterious disappearance of a college student. Twenty-year-old honor student Audrey Seiler was found yesterday after she was missing for four days. She says that she had been abducted and held at knifepoint.

Our Jonathan Freed is in Madison with the latest on the case.

Jonathan, good morning.

JONATHAN FREED, CNN CORRESPONDENT: Good morning, Daryn. The search was suspended over night, it is back on again today. And police have told us this morning though, that this time today's search is somewhat more scaled back than yesterday's.

Audrey Seiler was found in a marshy area about two miles from her home, when a passerby spotted her and called authorities. Police quickly set up a perimeter and started searching for a suspect believed armed with a gun and a knife, but found nothing. The day after, investigators will question Seiler and anyone else who might be able to help the investigation.

(BEGIN VIDEOTAPE)

LARRY KAMHOLTZ, MADISON POLICE DEPT.: There's a lot of things that we have to sit down and go through and try to piece some more information together, so we can identify the person that's involved. And that's going to take some time.

FREED: Wednesday, Audrey was given time to reconnect with her family.

KEITH SEILER, FATHER: Just relieved, glad to be warm, to see her friends and family. A bit surprised at the big hullabaloo.

FREED: The 20-year-old student at the University of Wisconsin disappeared early Saturday morning. A security camera in her apartment building caught her leaving without a coat. Doctors were impressed by her condition.

DR. PHILIP SCHULTZ, ST. MARY'S EMERGENCY SVCS.: She's really gotten through an ordeal remarkably well physically. She has lots of muscle aches from being confined during this period of time. And she's relatively dehydrated. So what we've been doing basically is just kind of replenishing her fluids. But she already looks a lot better than she did when she came in. She's smiling a lot and clearly, is a lot more comfortable.

FREED: A few hours later, Seiler left the hospital. Investigators paid extra attention to the missing person case because Seiler says she was attacked two months ago, knocked unconscious while out walking after midnigh. But she wasn't robbed or badly hurt.

During the four-day ordeal, her family tried to focus on positive thoughts.

STEPHANIE SEILER, MOTHER: We needed to stay strong for Audrey and Audrey needed to stay strong for us. And we believed in that.

(END VIDEOTAPE)

FREED: Now, Daryn, police tell us that today's questioning session with Audrey Seiler is expected to be quite intensive and that it's going to last at least several hours -- Daryn.

KAGAN: And Jonathan, do you get the feeling, as this goes on and there's more questions, that police are doubting her story that he was abducted?

FREED: Well, police are being very cautious about the way that they address that. I asked somebody from the police department that very question today, and they appeared to quicken their pace and to not really want to get into it. But the look on the person's suggested that that might be something that they're looking at right now.

And I can tell you earlier today I was standing right here. And as people were coming into city hall, which is behind me, one woman walked up to me and leaned in and said, at their breakfast table this morning that was the very issue that they were discussing. Wondering whether or not there is a suspect out there. So there is relief in this community today, but clearly there is at least some skepticism out there -- Daryn.

KAGAN: Jonathan Freed in Madison, Wisconsin. And Jonathan, as our newest correspondent, let me just say, no questions here at CNN. We are very happy to have you on board, so welcome.

FREED: Thanks. Thank you very much. Good to be here.

KAGAN: Good to have you here with us.

There is a new development to report in last summer's most talked about disappearance, the kidnapping of Elizabeth Smart. Attorneys for several media it outlets are fighting for entry into the mental competency hearings for accused abductor, Brian David Mitchell. Lawyers for the homeless man want the hearings to be closed. A hearing on the media's request is scheduled for today.

So how common are missing person cases? Well, it may be more than you think. In 2001, for example, the FBI reports more than 840,000 adults and children were reported missing. That's about 2300 case as day. Fewer than 29,000 cases a year are considered abductions or kidnappings.

There are some companies missing on Wall Street. We have a developing story, one that reflects the changing face of the Dow Jones industrial average. Three old companies, ones that were considered titans in their industries are being replaced by a new generation. Let's bring in Financial News reporter Fred Katayama from the New York Stock Exchange to talk about who is in and who is out.

Good morning, Fred.

Fred KATAYAMA, CNNfn CORRESPONDENT: Good morning, Daryn. Yes, the Dow Jones Industrials is getting a big makeover. Some of the best-known names in corporate America are being dropped from the famed blue chip index. AT&T, Eastman Kodak and International Paper will be kicked off the Dow Industrials as of April 8. The replacements? They will be replaced by the drug manufacturer Pfizer, the telecom company, Verizon communications, and the insurance giant America International Group, better known as AIG.

Now, according to Dow Jones, this represents broad trends in the stock market, less value and attention is being given to old-line industrials giants; while greater emphasis is placed on the service sector of the economy, with the edition of telecom, pharmaceutical and insurance companies.

Now, dropping, AT&T is particularly interesting because AT&T if first joined the Dow back in 1916. It was dropped for a few years. Since then it's been a main component since 1939. AT&T underwent a court-ordered break up 20 years ago, and now two of the seven companies that were carved out of the AT&T are in, while the old Ma Bell is out. Verizon is one of the so-called Baby Bells, along with SPC Communications, which was added to the Dow back in 1999.

The three stocks that are being dropped from the average, all sharply lower today because being dropped from the Dow is a big loss of prestige.

Daryn, back to you

KAGAN: Not a good thing. I just think it's fascinating that we're living in a time when Verizon is a bigger company than AT&T.

KATAYAMA: Yes, to think that AT&T was the mother ship. It was the parent of the so-called Baby Bell stocks. The Baby Bells, remember, were carved out of the old AT&T. And now one of the kids is bigger than the parent.

KAGAN: All grown up.

Fred Katayama, New York Stock Exchange, we'll check back with you to see how the markets are doing later in the day.

It was a speech that she intended to give. A live report from the White House on Condoleezza Rice's September 11 defense speech. The speech did not mention al Qaeda.

And Martha Stewart's day in court. She wants another one. We'll tell you why, just ahead.

KAGAN: And later, talk about all grown up, 30 years in the spotlight. "People" magazine joins us for a look at three decades of paparazzi pictures.

(COMMERCIAL BREAK)

KAGAN: Jurors in the Tyco case try again. A live report from outside the Manhattan courthouse just ahead.

And what Condoleezza Rice was set to talk about on September 11, 2001, a live report from the White House is straight ahead on that.

(COMMERCIAL BREAK)

KAGAN: Some news from the courtroom now.

Martha Stewart is asking for a new trial. An attorney for Stewart says one of the jurors who convicted her didn't reveal his past, which includes a 1997 arrest for assault. The papers were filed yesterday. Also say that the juror sought money for post-trial interviews. Stewart, by the way, faces sentencing in June and is expected to get 10 to 16 months in prison.

Other court news. The Tyco jury gets back to work today trying to decide guilt or innocence in the case of alleged corporate grand larceny.

Allan Chernoff at CNN Financial News, back at the Manhattan courthouse, his familiar post covering those deliberations for us.

Good morning, Allan.

ALLAN CHERNOFF, CNNfn CORRESPONDENT: Good morning to you, Daryn. And it is quite familiar because we are now in day No. 11 of juror deliberations. It's probably a reflection of how complicated this case is. The defendants, Dennis Koslowski and Mark Schwartz, the former top two executives of Tyco are each facing 24-criminal counts. The trial has been going on for more than half a year now, 49 witnesses, about 700 exhibits. And yesterday the jury asked for some exhibits that don't even exist. And some exhibits they've already received. So clearly, the jury even is getting a little bit confused here.

The jury also asked to re-hear some of the information regarding the conspiracy charge against Schwartz and Koslowski. And within that there are 68 overt acts. The two are charged with stealing money from Tyco and spending it...

KAGAN: OK...

CHERNOFF: ... on jewelry, real estate, artwork. Many other things -- Daryn.

KAGAN: And any sense, I know you're not one to read tealeaves or anything, but any sense that we're getting closer to a verdict?

CHERNOFF: Well, Daryn, we've had that sense for quite some time. Yesterday, many of the reporters were poised to hear something, but nothing came. So clearly, we've been on high alert for some time now, but still waiting.

KAGAN: All right. We'll being checking back with you. Allan Chernoff in Manhattan, thank you for that.

Want to get back now to the story of the attack on the four U.S. contractors in Iraq earlier this week. We have with us from Baghdad right now, Brigadier General Mark Kimmitt and senior coalition adviser and spokesman Dan Senor. Both, as I said, coming to us from Baghdad. Gentlemen, thank you for being with us. Early evening for you where you are.

DAN SENSOR, COALITION SPOKESMAN: Good morning.

BRIG. GEN. MARK KIMMITT, DEPUTY OPS DIR., U.S. MILITARY: Good morning.

KAGAN: Comments from Paul Bremer, your boss? Dan saying, "This will not go unpunished." Are those not fighting words that could just raise the level of tension there, not just in Baghdad but across Iraq?

SENOR: They are absolutely fighting words. They are intended to be followed up with fighting actions. The individuals that Ambassador Bremer was referring to when he said that are not individuals that we will generate tension with. They are people with whom there already is great tension. They are people who are trying to return Iraq to another era, one of mass graves and torture chambers, and rape rooms, and chemical attacks; the era of Saddam Hussein.

We are in a war with those people. We are trying to hunt them down. And Ambassador Bremer was very clear on this point earlier today.

KAGAN: And General, let me ask you this, in terms of these attacks not going unpunished. When and where these attacks took place, there were 4,000 Marines not that far away, a number of police departments, of police officers and yet there was no response. Is that because this area around Fallujah is such a hot bed for tension and potential eruption into even more violence? KIMMITT: Well, in fact, we had the Iraqi police try to get near the scene. By their reports they couldn't get close enough to the scene, by the time it was over. These were two vehicles that somehow got into the town. The event happened very, very rapidly. And by the accounts of the Iraqi police, by the time they got there, the situation was pretty well complete at that point.

KAGAN: And Dan, when you look at this incident, is it not just a question of what took place, but the response after it? And is it making the U.S. government question exactly who is responsible for these attacks that perhaps it's not just foreigners and not just Islamic militants?

SENOR: Oh, absolutely, Daryn. We have been saying for some time that attacks in Iraq come from several sources; not the least of which are foreign terrorist fighters, as you said. But also from elements, individuals tied to the former regime. Individuals I just described before, who want a return of the Saddam Hussein regime and all its deprivations and horrors that it inflicted upon the Iraqi people.

And that was the group that was represented yesterday involved in the attacks. Again, important to remember, tiny minority. The overwhelming majority of Iraqis are grateful for Saddam Hussein's ouster, they are grateful that his two sons are dead, they're grateful that the regime has fallen, and now a move towards a liberal democracy in this country.

KAGAN: But keeping that in mind, Dan, were you not taken aback, not just for the attack, because no one has to tell you how dangerous where you are doing your work. Not the attack but the crowd response and the brutal way that these bodies were treated after the attack, by the people just in that community, not just the attackers?

SENOR: It was horrific, Daryn. I don't think any American -- anyone in the civilized world could watch those images and not think that. That certainly was my reaction. But again, this is not the first time we've had problems in Fallujah. We know the vengeance, vehemence and visceral nature of the attitudes of some of those against us, those individuals that want to return to the former regime.

If you are an individual who wants to return to the former regime and you look at the progress we are making in handing over a sovereign democracy to the Iraqi people on June 30, you have a lot to worry about. And that was reflected in the attack yesterday and follow-up response that you're referring to. These are people who are very angry about the progress that the Iraqi people and the coalition are making in handing over a sovereign democratic Iraq on June 30.

It was ugly. It was horrific. These individuals will be hunted down, captured or killed. But it's again, it's important to remember the overwhelming majority of Iraqi people were as repulsed by this as we were. In fact, some Iraqi Governing Council members are holding a conference today. They wanted to express their own views on this. They were horrified by it. And some of the members are from the al Ambar Province, the exact province where the attacks took place yesterday in Fallujah.

KAGAN: And let me -- and General, let me bring you back in here. What do you do with Fallujah? This is an area that is not that far away from Baghdad. And as Dan was describing and as many people know, this is an area that has been loyal to Saddam Hussein. But also clearly a community that many people are upset with what is taking place in the country. How do you just hand this over on June 30?

KIMMITT: Well, first of all, we're not handing it over on June 30. But the way you handle it, is the way you handle other tough town in Iraq. We've handled Mosul. We've handled Tikrit. Six months ago Samarra, was very similar to Fallujah, Baquba. What it takes, it is a very, very patient approach. You've got to go in, you've got to use a combination of the iron fist and the velvet glove. You've got to use kinetic options, non-kinetic options.

But you've got to make it very clear that we will not be prevented from coming in Fallujah. We're going to pass by that town. And for the vast majority of citizen in that town who are being held hostage by a small number of insurgents, we're going to bring them a better life.

KAGAN: And just real quickly in wrapping. Dan, a question of the four U.S. contractors who were killed worked for a security company in North Carolina, Blackwater. The same company, I understand, that's charged with protecting your boss, Paul Bremer. And I imagine you and the other people working for the Coalition Provisional Authority.

SENOR: Yes, that's correct, Daryn. Blackwater is one of the entities involved in providing security for Ambassador Bremer. Of course, he has approximately sources of protection, not the least of which is the U.S. Army. And so, yes, Blackwater is involved.

KAGAN: So with all due respect to the men who lost their lives, any concern that this security company is up to the task?

SENOR: Absolutely. We have the utmost confidence in Blackwater and the other security institutions that protect Mr. Bremer and provide security throughout the country.

KAGAN: Dan Senor and Brigadier General Mark Kimmitt joining us from Baghdad. Gentlemen, thank you for your time.

SENOR: Thank you.

KIMMITT: Thank you.

KAGAN: Arrest and criminal charges in a major drug bust. Authorities say they've broken up a huge ecstasy trafficking ring. Details just ahead.

And he says he was Carolyn Bissett-Kennedy's lover. Stewart Michael Bergin says how one of Carolyn's friends is responding to his claims. CNN LIVE TODAY is straight ahead.

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Aired April 1, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, HOST: We'll get started here in Atlanta. We are at CNN headquarters. I'm Daryn Kagan, good morning. We start with the headlines.
A convoy of fuel tankers came under attack today near Baghdad; one truck driver was wounded by the roadside bomb. It was the second such attack in less than an hour on that stretch of highway. An Iraqi civilian was hurt in the first blast. A live report from Baghdad is coming up in just a moment.

On Capitol Hill, a hearing on al Qaeda is underway in the House, with the Madrid train bombing a prominent focus. Among those testifying is J. Cofer Black, a senior counterterrorism official at the State Department. Three suspects in the March 11 train attacks are expected to be arraigned today in Madrid.

In Madison, Wisconsin so many unanswered questions. That is what a friend of Audrey Seiler says about Seiler's mysterious four-day disappearance. The college sophomore was found alive and in fairly good shape yesterday. A live update on that investigation is just ahead as well.

And badly wounded soldier Jessica Lynch was rescued in Iraq exactly one year ago. Her injuries still require daily therapy. Lynch tells the Associated Press that her future is undecided, including the recent postponement of her June wedding.

The first hour of CNN LIVE TODAY begins right now.

We are going to begin this hour in Iraq, where more violence has erupted on this day after a gristly attack killed four U.S. civilian contractors. Today, two roadside bombs injured at least two people, but the real target may have been a fuel convoy truck that was under U.S. militory -- U.S. military escort.

In the Capitol, CNN's Jim Clancy -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Good evening from Baghdad. Daryn, I'm going to get to that incident in a moment. First, let's flashback to Fallujah on Wednesday, the horrific scenes around that vehicle, in which four security guards were killed; they were American citizens. An angry mob pulling their charred bodies from the vehicles and dismembering them and then hanging them on public display.

That has upset a lot of people, some Iraqis here in Baghdad excusing it as a reaction to the U.S. occupation. Other though, expressing shock that the Americans were targeted. They were, after all, civilians.

Now, we had a response today from Paul Bremer, civilian administrator here in Baghdad. He was speaking to a group of cadets about that incident. And he had this to say.

(BEGIN VIDEO CLIP)

PAUL BREMER, IRAQI CIVILIAN ADMINISTRATOR: The acts we have seen were despicable and inexcusable. They violate the tenets including Islam, as well as the foundations of civilized society. Their deaths will not go unpunished.

(END VIDEO CLIP)

CLANCY: All right. That was Paul Bremer. And it should be noted that as he said some -- had some tough language, there, so, too, did a spokesperson here in Baghdad, saying that Fallujah, one way or another would be pacified. That the U.S. wasn't going to back away from that trouble spot in the heart of the Sunni Triangle.

Meantime, the attacks continued. As you noted, it was a fuel convoy making its way southward. It was a northway -- northwest Baghdad. First one roadside bomb exploded that injured an Iraqi civilian. The convoy pulled up to a halt just as U.S. military escort -- military police were sending out a robot to search for any more unexploded roadside bombs. Another blast tore through the area.

It did not strike the fuel trucks themselves, the obvious target in all of this. There was no fire that was caused by it. But there was some shattered windshields and one driver had to be treated for either shrapnel or glass wounds that he received. It's not clear yet whether he was a U.S. citizen, a U.S. soldier, or more likely a contractor, perhaps a foreign national.

So that, as you see it, another difficult day for the U.S. military here in Iraq. Even as they're trying to come to grips with those horrific scenes that played out yesterday from Fallujah.

Jim Clancy in Baghdad.

CLANCY: Daryn.

KAGAN: Yes, Jim thank you.

We're going to have a chance in just a few minutes to talk with Dan Senor, the Coalition Provisional Authority. Also, Brigadier General Mark Kimmitt about what is being done to search for the people who took place in that attack.

Now we move on, though, to the war in terror on Southeast Asia and the discovery of what's being described as a blueprint to take over the world. Anti-terror experts are pouring over a 44-page playbook of sorts. It was found in a safe house used by an al Qaeda- linked group.

Our bureau chief in Jakarta Maria Ressa has the exclusive details on what could be a major find in the war on terror -- Maria.

MARIA RESSA, CNN BUREAU CHIEF: Daryn, the document is unique, according to terrorism analysts. There have been about 30 or so al Qaeda training manuals that have been discovered around the world, widely disseminated. These were the how to, the nuts and bolts of terrorism: how to make a bomb, how to target an assassination.

This document that they found here in Indonesia had a much broader perspective -- an ideological perspective; call it a blueprint for global domination. It's for Jama'a Islamia, al Qaeda's arm here in Southeast Asia, a group that staged two attacks here funded by al Qaeda since 9/11. Written in Arabic and Indonesian, this document talks about two divisions: an operations arm, which carries out terrorist attacks; and an administrative group governed by a constitution with a well-defined leadership structure.

So how is it going to take over the world? It does it in ages, according to this document. First by molding the individual then the society. And then taking over the world after it knocks off secular governments. And the overall goal is to restore the Islamic Caliphate.

Back to you, Daryn.

KAGAN: Maria Ressa in Jakarta. And Maria is going to have a lot more on her exclusive story this evening on "ANDERSON COOPER 360." That's 7:00 Eastern, 4:00 Pacific right here on CNN.

Now, another front on the nation's war on terror, federal government had vowed to have a terror watch list in place by the end of March. Well, if you look at your calendar, it's now the first of April and a list is in place. But there is still a lot of work to be done on the list.

Our justice correspondent Kelly Arena has that story.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): The goal, to keep known terrorists, like two of the September 11 hijackers from ever getting into the United States again. How? By combining information about suspects gathered by any U.S. intelligence and law enforcement agency into a single terror watch list. Two and a half years after the attacks, there now is one. But officials admit, it's a work in progress.

DONNA BUCELLA, TERRORIST SCREENING CTR: We now have a single data base, which is updated daily and unclassified law enforcement sensitive, containing identifying information of known or suspected terrorists.

ARENA: The Terrorist Screening Center, housed within the FBI, currently has about 55,000 names on its new consolidated, terror watch list. It's accessible to everyone from customs and border patrol agents to local police, but not instantaneously. REP. JIM TURNER (D), TEXAS: If you have the 1-800 number and you are a law enforcement officer or a federal official, you can call in and you can give them a name, and they will run a search on the database. But they still do not have the ability to access that in real time.

ARENA: What's more, the list is incomplete. Some agencies still have not handed overall their names. And despite an effort to include identifying information, some travelers are still mistaken for terrorist whose share the same name.

ASIF IOBAL, TRAVELER: It was very embarrassing. I mean I was just discriminated on the basis of my name. And that has been repeatedly going on.

ARENA (on camera): Officials say they will put a mechanism in place to resolve that issue. And they promise a complete and fully automated list by tend of the year.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: We move on now to Madison, Wisconsin. That is where a search is to resume this morning for clues in the mysterious disappearance of a college student. Twenty-year-old honor student Audrey Seiler was found yesterday after she was missing for four days. She says that she had been abducted and held at knifepoint.

Our Jonathan Freed is in Madison with the latest on the case.

Jonathan, good morning.

JONATHAN FREED, CNN CORRESPONDENT: Good morning, Daryn. The search was suspended over night, it is back on again today. And police have told us this morning though, that this time today's search is somewhat more scaled back than yesterday's.

Audrey Seiler was found in a marshy area about two miles from her home, when a passerby spotted her and called authorities. Police quickly set up a perimeter and started searching for a suspect believed armed with a gun and a knife, but found nothing. The day after, investigators will question Seiler and anyone else who might be able to help the investigation.

(BEGIN VIDEOTAPE)

LARRY KAMHOLTZ, MADISON POLICE DEPT.: There's a lot of things that we have to sit down and go through and try to piece some more information together, so we can identify the person that's involved. And that's going to take some time.

FREED: Wednesday, Audrey was given time to reconnect with her family.

KEITH SEILER, FATHER: Just relieved, glad to be warm, to see her friends and family. A bit surprised at the big hullabaloo.

FREED: The 20-year-old student at the University of Wisconsin disappeared early Saturday morning. A security camera in her apartment building caught her leaving without a coat. Doctors were impressed by her condition.

DR. PHILIP SCHULTZ, ST. MARY'S EMERGENCY SVCS.: She's really gotten through an ordeal remarkably well physically. She has lots of muscle aches from being confined during this period of time. And she's relatively dehydrated. So what we've been doing basically is just kind of replenishing her fluids. But she already looks a lot better than she did when she came in. She's smiling a lot and clearly, is a lot more comfortable.

FREED: A few hours later, Seiler left the hospital. Investigators paid extra attention to the missing person case because Seiler says she was attacked two months ago, knocked unconscious while out walking after midnigh. But she wasn't robbed or badly hurt.

During the four-day ordeal, her family tried to focus on positive thoughts.

STEPHANIE SEILER, MOTHER: We needed to stay strong for Audrey and Audrey needed to stay strong for us. And we believed in that.

(END VIDEOTAPE)

FREED: Now, Daryn, police tell us that today's questioning session with Audrey Seiler is expected to be quite intensive and that it's going to last at least several hours -- Daryn.

KAGAN: And Jonathan, do you get the feeling, as this goes on and there's more questions, that police are doubting her story that he was abducted?

FREED: Well, police are being very cautious about the way that they address that. I asked somebody from the police department that very question today, and they appeared to quicken their pace and to not really want to get into it. But the look on the person's suggested that that might be something that they're looking at right now.

And I can tell you earlier today I was standing right here. And as people were coming into city hall, which is behind me, one woman walked up to me and leaned in and said, at their breakfast table this morning that was the very issue that they were discussing. Wondering whether or not there is a suspect out there. So there is relief in this community today, but clearly there is at least some skepticism out there -- Daryn.

KAGAN: Jonathan Freed in Madison, Wisconsin. And Jonathan, as our newest correspondent, let me just say, no questions here at CNN. We are very happy to have you on board, so welcome.

FREED: Thanks. Thank you very much. Good to be here.

KAGAN: Good to have you here with us.

There is a new development to report in last summer's most talked about disappearance, the kidnapping of Elizabeth Smart. Attorneys for several media it outlets are fighting for entry into the mental competency hearings for accused abductor, Brian David Mitchell. Lawyers for the homeless man want the hearings to be closed. A hearing on the media's request is scheduled for today.

So how common are missing person cases? Well, it may be more than you think. In 2001, for example, the FBI reports more than 840,000 adults and children were reported missing. That's about 2300 case as day. Fewer than 29,000 cases a year are considered abductions or kidnappings.

There are some companies missing on Wall Street. We have a developing story, one that reflects the changing face of the Dow Jones industrial average. Three old companies, ones that were considered titans in their industries are being replaced by a new generation. Let's bring in Financial News reporter Fred Katayama from the New York Stock Exchange to talk about who is in and who is out.

Good morning, Fred.

Fred KATAYAMA, CNNfn CORRESPONDENT: Good morning, Daryn. Yes, the Dow Jones Industrials is getting a big makeover. Some of the best-known names in corporate America are being dropped from the famed blue chip index. AT&T, Eastman Kodak and International Paper will be kicked off the Dow Industrials as of April 8. The replacements? They will be replaced by the drug manufacturer Pfizer, the telecom company, Verizon communications, and the insurance giant America International Group, better known as AIG.

Now, according to Dow Jones, this represents broad trends in the stock market, less value and attention is being given to old-line industrials giants; while greater emphasis is placed on the service sector of the economy, with the edition of telecom, pharmaceutical and insurance companies.

Now, dropping, AT&T is particularly interesting because AT&T if first joined the Dow back in 1916. It was dropped for a few years. Since then it's been a main component since 1939. AT&T underwent a court-ordered break up 20 years ago, and now two of the seven companies that were carved out of the AT&T are in, while the old Ma Bell is out. Verizon is one of the so-called Baby Bells, along with SPC Communications, which was added to the Dow back in 1999.

The three stocks that are being dropped from the average, all sharply lower today because being dropped from the Dow is a big loss of prestige.

Daryn, back to you

KAGAN: Not a good thing. I just think it's fascinating that we're living in a time when Verizon is a bigger company than AT&T.

KATAYAMA: Yes, to think that AT&T was the mother ship. It was the parent of the so-called Baby Bell stocks. The Baby Bells, remember, were carved out of the old AT&T. And now one of the kids is bigger than the parent.

KAGAN: All grown up.

Fred Katayama, New York Stock Exchange, we'll check back with you to see how the markets are doing later in the day.

It was a speech that she intended to give. A live report from the White House on Condoleezza Rice's September 11 defense speech. The speech did not mention al Qaeda.

And Martha Stewart's day in court. She wants another one. We'll tell you why, just ahead.

KAGAN: And later, talk about all grown up, 30 years in the spotlight. "People" magazine joins us for a look at three decades of paparazzi pictures.

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KAGAN: Jurors in the Tyco case try again. A live report from outside the Manhattan courthouse just ahead.

And what Condoleezza Rice was set to talk about on September 11, 2001, a live report from the White House is straight ahead on that.

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KAGAN: Some news from the courtroom now.

Martha Stewart is asking for a new trial. An attorney for Stewart says one of the jurors who convicted her didn't reveal his past, which includes a 1997 arrest for assault. The papers were filed yesterday. Also say that the juror sought money for post-trial interviews. Stewart, by the way, faces sentencing in June and is expected to get 10 to 16 months in prison.

Other court news. The Tyco jury gets back to work today trying to decide guilt or innocence in the case of alleged corporate grand larceny.

Allan Chernoff at CNN Financial News, back at the Manhattan courthouse, his familiar post covering those deliberations for us.

Good morning, Allan.

ALLAN CHERNOFF, CNNfn CORRESPONDENT: Good morning to you, Daryn. And it is quite familiar because we are now in day No. 11 of juror deliberations. It's probably a reflection of how complicated this case is. The defendants, Dennis Koslowski and Mark Schwartz, the former top two executives of Tyco are each facing 24-criminal counts. The trial has been going on for more than half a year now, 49 witnesses, about 700 exhibits. And yesterday the jury asked for some exhibits that don't even exist. And some exhibits they've already received. So clearly, the jury even is getting a little bit confused here.

The jury also asked to re-hear some of the information regarding the conspiracy charge against Schwartz and Koslowski. And within that there are 68 overt acts. The two are charged with stealing money from Tyco and spending it...

KAGAN: OK...

CHERNOFF: ... on jewelry, real estate, artwork. Many other things -- Daryn.

KAGAN: And any sense, I know you're not one to read tealeaves or anything, but any sense that we're getting closer to a verdict?

CHERNOFF: Well, Daryn, we've had that sense for quite some time. Yesterday, many of the reporters were poised to hear something, but nothing came. So clearly, we've been on high alert for some time now, but still waiting.

KAGAN: All right. We'll being checking back with you. Allan Chernoff in Manhattan, thank you for that.

Want to get back now to the story of the attack on the four U.S. contractors in Iraq earlier this week. We have with us from Baghdad right now, Brigadier General Mark Kimmitt and senior coalition adviser and spokesman Dan Senor. Both, as I said, coming to us from Baghdad. Gentlemen, thank you for being with us. Early evening for you where you are.

DAN SENSOR, COALITION SPOKESMAN: Good morning.

BRIG. GEN. MARK KIMMITT, DEPUTY OPS DIR., U.S. MILITARY: Good morning.

KAGAN: Comments from Paul Bremer, your boss? Dan saying, "This will not go unpunished." Are those not fighting words that could just raise the level of tension there, not just in Baghdad but across Iraq?

SENOR: They are absolutely fighting words. They are intended to be followed up with fighting actions. The individuals that Ambassador Bremer was referring to when he said that are not individuals that we will generate tension with. They are people with whom there already is great tension. They are people who are trying to return Iraq to another era, one of mass graves and torture chambers, and rape rooms, and chemical attacks; the era of Saddam Hussein.

We are in a war with those people. We are trying to hunt them down. And Ambassador Bremer was very clear on this point earlier today.

KAGAN: And General, let me ask you this, in terms of these attacks not going unpunished. When and where these attacks took place, there were 4,000 Marines not that far away, a number of police departments, of police officers and yet there was no response. Is that because this area around Fallujah is such a hot bed for tension and potential eruption into even more violence? KIMMITT: Well, in fact, we had the Iraqi police try to get near the scene. By their reports they couldn't get close enough to the scene, by the time it was over. These were two vehicles that somehow got into the town. The event happened very, very rapidly. And by the accounts of the Iraqi police, by the time they got there, the situation was pretty well complete at that point.

KAGAN: And Dan, when you look at this incident, is it not just a question of what took place, but the response after it? And is it making the U.S. government question exactly who is responsible for these attacks that perhaps it's not just foreigners and not just Islamic militants?

SENOR: Oh, absolutely, Daryn. We have been saying for some time that attacks in Iraq come from several sources; not the least of which are foreign terrorist fighters, as you said. But also from elements, individuals tied to the former regime. Individuals I just described before, who want a return of the Saddam Hussein regime and all its deprivations and horrors that it inflicted upon the Iraqi people.

And that was the group that was represented yesterday involved in the attacks. Again, important to remember, tiny minority. The overwhelming majority of Iraqis are grateful for Saddam Hussein's ouster, they are grateful that his two sons are dead, they're grateful that the regime has fallen, and now a move towards a liberal democracy in this country.

KAGAN: But keeping that in mind, Dan, were you not taken aback, not just for the attack, because no one has to tell you how dangerous where you are doing your work. Not the attack but the crowd response and the brutal way that these bodies were treated after the attack, by the people just in that community, not just the attackers?

SENOR: It was horrific, Daryn. I don't think any American -- anyone in the civilized world could watch those images and not think that. That certainly was my reaction. But again, this is not the first time we've had problems in Fallujah. We know the vengeance, vehemence and visceral nature of the attitudes of some of those against us, those individuals that want to return to the former regime.

If you are an individual who wants to return to the former regime and you look at the progress we are making in handing over a sovereign democracy to the Iraqi people on June 30, you have a lot to worry about. And that was reflected in the attack yesterday and follow-up response that you're referring to. These are people who are very angry about the progress that the Iraqi people and the coalition are making in handing over a sovereign democratic Iraq on June 30.

It was ugly. It was horrific. These individuals will be hunted down, captured or killed. But it's again, it's important to remember the overwhelming majority of Iraqi people were as repulsed by this as we were. In fact, some Iraqi Governing Council members are holding a conference today. They wanted to express their own views on this. They were horrified by it. And some of the members are from the al Ambar Province, the exact province where the attacks took place yesterday in Fallujah.

KAGAN: And let me -- and General, let me bring you back in here. What do you do with Fallujah? This is an area that is not that far away from Baghdad. And as Dan was describing and as many people know, this is an area that has been loyal to Saddam Hussein. But also clearly a community that many people are upset with what is taking place in the country. How do you just hand this over on June 30?

KIMMITT: Well, first of all, we're not handing it over on June 30. But the way you handle it, is the way you handle other tough town in Iraq. We've handled Mosul. We've handled Tikrit. Six months ago Samarra, was very similar to Fallujah, Baquba. What it takes, it is a very, very patient approach. You've got to go in, you've got to use a combination of the iron fist and the velvet glove. You've got to use kinetic options, non-kinetic options.

But you've got to make it very clear that we will not be prevented from coming in Fallujah. We're going to pass by that town. And for the vast majority of citizen in that town who are being held hostage by a small number of insurgents, we're going to bring them a better life.

KAGAN: And just real quickly in wrapping. Dan, a question of the four U.S. contractors who were killed worked for a security company in North Carolina, Blackwater. The same company, I understand, that's charged with protecting your boss, Paul Bremer. And I imagine you and the other people working for the Coalition Provisional Authority.

SENOR: Yes, that's correct, Daryn. Blackwater is one of the entities involved in providing security for Ambassador Bremer. Of course, he has approximately sources of protection, not the least of which is the U.S. Army. And so, yes, Blackwater is involved.

KAGAN: So with all due respect to the men who lost their lives, any concern that this security company is up to the task?

SENOR: Absolutely. We have the utmost confidence in Blackwater and the other security institutions that protect Mr. Bremer and provide security throughout the country.

KAGAN: Dan Senor and Brigadier General Mark Kimmitt joining us from Baghdad. Gentlemen, thank you for your time.

SENOR: Thank you.

KIMMITT: Thank you.

KAGAN: Arrest and criminal charges in a major drug bust. Authorities say they've broken up a huge ecstasy trafficking ring. Details just ahead.

And he says he was Carolyn Bissett-Kennedy's lover. Stewart Michael Bergin says how one of Carolyn's friends is responding to his claims. CNN LIVE TODAY is straight ahead.

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