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What Can U.S. Government Do To End Gas Price Hikes? New Report Shows Animals Human's Biggest Threat For Illness
Aired April 04, 2004 - 16:00 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.
CATHERINE CALLAWAY, CNN ANCHOR: In Spain, explosives were prepared, packed and connected to detonators and the bomber was going to keep on attacking, says the spanish interior minister.
KATHLEEN KOCH, CNN CORRESPONDENT: I'm Kathleen Koch. With gas prices at a record high, we'll tell you who's feeling the pinch most.
CALLAWAY: Hello and welcome everyone to CNN SUNDAY. I'm Catherine Callaway. And we'll have all of those stories for you during this next hour, but we begin with the headlines.
A senior coalition officials tells CNN an ambush in a Shiite neighborhood in Baghdad left four U.S. soldiers dead and at least 40 wounded. The official says the army regained control of five stations htat a militia loyal to a radical Shiite cleric had taken over.
9/11 commission chairment, Tomas Kean says that his panel's final report could be made public as early as July. The panel is scheduled to hear from national security adviser Condoleezza Rice on Thursday. The White House must clear the report for security reasons before it becomes public.
And John Wayne is helping deliver the mail. Not the Pony Express, it's not coming back. The late actor's likeness appears on a new postage stamp unveiled this weekend. That stamp's part of the commemorative series, Legends of Hollywood.
Well, we begin with a day of turmoil in Iraq. Violence erupted across that country with deadly consequences. Four U.S. soldiers were killed during clashes in Baghdad. It happened after gunmen took over some public buildings, including police stations in a Shiite neighborhood. And farther south in Najaf, a huge demonstration there turned deadly when protesters opened fire on a garrison housing Spanish troops. And in the north, a car bomb exploded in Kirkuk.
Let's go right to CNN's Jim Clancy. He's joining us from Baghdad with the latest of all the violence that has occurred there today. Jim, what can you tell us?
JIM CLANCY, CNN CORRESPONDENT: Catherine, as you said, a bloody day, and the most concern, this new front thapt may be opening up with the Shia Muslim militant leader Moqtada Sadr.
Now as you noted, 4 Americans lost their lives, 40 other wounded in an ambush in Sadr City. It used to be called Saddam City, an impoverished slum area in the southern areas. It's a sprawling area of Baghdad where Shia Muslims predominate. It is there also that Moqtada al Sadr has many, many supporters.
The U.S. troops were ambushed as they went 24 to try to take back some police stations that had been taken over. Moqtada Sadr's supporters said to have taken control of police cars weapons and perhaps other things in in Najaf. They also raided some, a police station and took arms and computers.
In Najaf, the site of some of the worst bloodshed during the day, there was fighting between Moqtada al Sadr's supporters and Spanish and Salvadoran troops. Now, there we had 1 Salvadoran soldier killed, 1 U.S. soldier killed who happened to be at that base, as well as a number of others wounded.
But on Moqtada Sadr's side, in that incident, we understand that as many as 20 members of his Medi Army were killed, some 200 others or more may have been wounded.
The numbers are very sketchy today, Catherine, but the concern, has a new front open up with the Shia, the 60 percent majority in this country who up until now have been patient, perhaps opposed to the occupation, but happy with the overthrow of Saddam Hussein and largely backing the U.S. effort. If this is a new front it could be a serious development -- Catherine.
CALLAWAY: That was going to be my question, Jim. Tell us more about this population in Iraq and how large they are.
CLANCY: Well, the Shia Muslims constitute 60 percent. Moqtada Sadr is a militant. He's very young, hes in his 20s, but he does not command a sprawling base of support, if you will. It's very interesting why this is breaking out right now. It is not over the closure of his newspaper, it would appear. It would be because of the arrest of several members of his entourage, including Mustafa Yaqoubi, a top aide, was picked up on Friday night.
Many people thought was in relation to the inflammatory remarks that he had been making. It is not. We understand it is on an Iraqi police arrest warrant charging him with involvement in the assassination, the bloody assassination, of a rival Muslim cleric in an Najaf just about one year ago, on April 10, 2003.
Muqtada Sadr, had long been suspected, accused in that assassination of his rival, but no one had ever charged him. He denied it vehemently. Now someone has been arrested. There are also 12 more warrants waiting. That might explain, in some way why, Muqtada Sadr has retreated to a stronghold in Qufa, called his members there to surround him. He's says he's going to have a sit-in so long as he's there it would seem that he is somewhat distant from the violence going on around right now in four cities around Iraq. But at the same time, it would make him very difficult to arrest -- Catherine.
CALLAWAY: And Jim, in the streets now, I know I spoke with you earlier today, things seemed to have escalated since then. What is the situation now? CLANCY: Well, the streets are calm here in Baghdad proper. In the downtown area. Muqtada Sadr's supporters, if you will, retreated from this area. They have returned, some of them to Sadr City, some to other locations. Sadr City very much the focus.
As we understand it now, more than a dozen U.S. tanks are on the streets. Residents have said, they are afraid to venture out, they're staying buttoned down inside their homes. And it would appear that a battle for those streets, control of those police stations, continues right now.
The question is, what happens tomorrow? Is this another front? Will this lied to more support from Muqtada Sadr? Or will these murder charges come out against one of his top aides who would undermine that support? Critical questions all of them for the U.S. coalition.
CALLAWAY: And I know Jim, I know you'll follow it for us. Thank you, Jim Clancy in Baghdad for us today.
And coming up a little later on this hour, we'll tell you more about the insurgents apparently causing the trouble in Iraq. We'll talk to an expert on the subject. Stay with us for that.
Moving on now to Spain where police say the ringleader of the Madrid train bombings wg among the terrorist suspect that blew themselves up as police closed in on them yesterday. But as CNN's Al Goodman reports, the manhunt is not over.
(BEGIN VIDEOTAPE)
AL GOODMAN, CNN BUREAU CHIEF (voice-over): This is what it looked like Saturday night. Suspected terrorists blew themselves up as the police closed in on their hide out, killing a police officer, and wounding others.
ANGEL ACEBES, SPANISH INTERIOR MINISTER: (through translator): The central core of those who carried out the terrorist attacks have been either arrested, or are deed, killed by the collective suicide bombing of yesterday.
GOODMAN: The dead include this Tunisian, Serhane Ben Abdelmajid Fakhet, the suspected coordinator of the deadly Madrid commuter train bombings last month. Moroccan Abdennabi Kounjaa also was killed. Like the Tunisian, he was wanted on an international arrest warrant for the train bombings.
The apartment where the suspects lived was pulverized by the explosion, and it caused damage throughout the building in Madrid's southern suburbs Leganes.
But authorities say explosives found intact at the apartment after the blast links the suspects to the March 11 Madrid commuter train bombings, and also to the bomb found last Friday on the bullet train tracks south of Madrid. ACEBES (through translator): They found around 200 detonators, ten kilos of unexploded dynamite, and some of this explosive was already prepared, ready for immediate use. The detonators are of the same model that was found in the (UNINTELLIGIBLE) bag in the Aver (ph) track one. Therefore, this suggests all the incidents are related.
GOODMAN: The working class neighborhood has not recovered from the commotion, shocked that terror suspects lived right next door.
UNIDENTIFIED FEMALE (through translator): It was tremendous, an enormous blast. My son was thrown against the sofa, and I don't know what else I can say. It was horrible.
GOODMAN: As people here return to their homes, grim work continued inside the suspected terrorist hideout. And inside this dark van, forensics experts prepared to leave with remains of the suspects.
Spanish leaders turned out Sunday for the funeral of the police officer who also died in Saturday's raid.
(on-camera): Police say the manhunt continues in the Madrid train bombings. At least two terrorist suspects may have escaped police on Saturday and others sought on international arrest warrants apparently remain at large. Al Goodman, CNN, Leganes, Spain.
(END VIDEOTAPE)
CALLAWAY: Back in the U.S., President Bush is at the White House after spending time at Camp David. Meanwhile, the man who wants to unseat him is back on the campaign trail. John Kerry took a brief break last week after shoulder surgery he now plans aggressive speaks. Here's CNN national correspondent, Kelly Wallace, with more.
(BEGIN VIDEOTAPE)
KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): John Kerry's doctor might not be happy when he sees this: the Senator slingless, greeting passerby outside before huddling inside with his foreign policy team. A day earlier he chatted with his economic team.
His top advisers some of the biggest names in the Clinton administration, including former treasury secretary Robert Rubin.
Challenge No. 1, though, for Senator Kerry, who's making the issue of jobs a major part of his campaign, what to say about 300,000 new jobs created in March, the largest one-month increase in four years?
SEN. JOHN KERRY (D-MA) CANDIDATE FOR PRESIDENT: Obviously, all of us are pleased with the job numbers for this month, but there's almost no way this administration will avoid having lost 2 million jobs.
WALLACE: And that's a message aides say the Senator will continue to bring to the campaign trail, and to his ads. Like this new one: ANNOUNCER: George Bush says sending jobs overseas makes sense for America.
WALLACE: Now running in 17 states, considered battleground. Challenge No. 2 for Kerry, getting back on the stump and explaining has he would do as president after a March in which the Bush team spent millions trying to define the Senator as a tax-raising threat to the economy.
UNIDENTIFIED MALE: They will say in focus group, you know, if you listen to people, I don't know much about him I want to know more. When's he going to start talking to us?
WALLACE: And challenge No. 3, keep bringing in the cash. Although just at few months ago, the campaign was strapped, it has not been a problem of late. It announced it raised a record more than $50 million in the first three months of the year, topping what had been the record for a non-incumbent, the $29 million then Governor Bush raised in three months in 1999.
(on camera): And challenge No. 4, no handshaking for at least a week, and no lifting any babies for even longer. Perhaps the biggest challenge for a candidate who's trying to win over voters, one rope line at a time. Kelly Wallace, CNN, New York.
(END VIDEOTAPE)
CALLAWAY: Washington's power over prices at the pump. Can politicians really affect what you pay for gas? Coming up next, we'll ask an expert from "Smartmoney" magazine.
Also, still to come, the dangerous connection between animals and human disease. Why the threat is growing?
Plus this:
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We built this race to send a signal, not just from Bahrain, but from the Middle East, that things are changing. Things are getting better. There's a new drive, a new determination.
(END VIDEO CLIP)
CALLAWAY: The humanitarian mission behind a racetrack in the desert.
(COMMERCIAL BREAK)
CALLAWAY: With gas prices hitting record high, averaging $1.76 nationwide, how are motorists and businesses coping? Our Kathleen Koch has more.
(BEGIN VIDEOTAPE)
KATHLEEN KOCH, CNN CORRESONDENT (voice-over): As gasoline prices continue their climb upward, the hardest hit are bailing out.
UNIDENTIFIED MALE: We can't afford it. I have to start using the bus now.
KOCH: Some small independent truck drivers are sidelined until prices drop.
PAUOL CUTTER JR, OWNER-OPERATOR INDEPENDENT DRIVERS ASSN: You see truck drivers declaring that they're parking their truck. They don't make any money out on the road.
KOCH: Bigger freight carriers are buying diesel fuel in bulk months ahead of time, and using satellite technology to track down affordable fuel on the road.
BOB COSTELLO, AMERICAN TRUCKING ASSN: They can then contact the carriers -- the drivers as they are going down the road and tell them where the cheapest place is to fuel up.
KOCH: Most, like this florist, are being forced to pass on the higher cost of doing business.
LAILA, AZIZI, OWNER, FLOWER TOWN: Now I have to charge a delivery charge of $5 or $8. I try not to, but unfortunately it's very hard now with the gas prices.
KOCH: And some business owners are scaling back.
TOM DOYLE, OWNER, DOYLE PRINTING: We've actually traded in some vehicles, bigger SUVs that we have, the bigger gas-guzzlers, and we've gone to a smaller vehicles to better gas mileage.
KOCH: But few individuals are changing their habits, even when it comes to summer travel.
UNIDENTIFIED FEMALE: I'll probably use the car still, because the distances aren't that far and so I don't think it will make that big a difference.
KOCH: Hybrids that get more than 40 miles per gallon remain a hot commodity.
GINNI GULTON, PRIUS OWNER: You get to drive by the gas station and don't have to stop.
KOCH: But it's the SUV that still rules the road with sales up 14 percent over last year, while sales of small and mid-size cars dropped.
PAUL TAYLOR, CHIEF ECONOMIST, NATL AUTO DEALERS ASSN: I think gasoline prices over $2.50 a gallon in the United States, not just in California, would start to change the selection of vehicles that consumers make. KOCH:
(END VIDEOTAPE) KOCH: And economists say those prices would have to stay high for sometime before most Americans would permanently change their buying or driving habits. Back to you, Catherine.
CALLAWAY: Kathleen koch in Washington, thank you.
Right now gas prices are 30 cents a gallon higher than last year. On average, that adds up to about $30 extra a month in fuel costs. So can Washington do anything to help out? Let's ask Robin Karzad. He's a contributing writer for "Smartmoney" magazine. He's joining us from boston. Thanks for being with us on this Sunday.
ROBIN KARZAD, "SMARTMONEY": Hi Catherine. Thanks for having me.
CALLAWAY: Well, we know certainly that politicians like to talk about it, but how much power, how much control does Washington really have over gas prices, other than adding or subtracting gas tax?
KARZAD: Beyond rhetoric, unfortunately, not much control. But -- in reality, I mean, $2 a gallon gasoline tests the consumer's pain threshold. To the extent we're in an election season, you would seem clueless if you as a politician didn't try to shift blame on the other side.
Look at the Kerry campaign saying that Cheney and Bush, these guys are products of the oil fields. Oil patch brothers, and they profit from these things. It's very much not in their interest to see lower gas prices. But the Bush side counters that this guy's a tax and spend liberal, and he supported a tax hike on gasoline. All this is beside the point actually, because what it boils down to a supply/demand disconnect.
And OPEC now cutting production just last week. Interesting timing on a move by OPEC to do this. What brought that about?
KARZAD: Right, OPEC, you would think, is really living large right now. Gasoline at $2. The price of crude, which is their benchmark, at more than $38 a barrel. That's nearing $40. You would think that there is some room for them to slack it up a bit and offer relief for the economies, but what OPEC is facing here, the reality of it is that their crude exports are dollar denominated.
The dollar has been on this prolonged slide as a currency, eating into their revenues in that the European are getting a better deal, because their currency is stronger against the dollar. On top of that, it's unique in the United States for the first time is feeling the pinch from China and India, as new kids on the block economically. And they have this voracious thirst for oil. And Japan's economy is improving against. Put it all together and there isn't much wiggle room.
CALLAWAY: Almost like a game between these gas-guzzling nations and OPEC, isn't it?
KARZAD: Yes. Whatever OPEC puts out, these people are all too happy to take. Here in the United States, he we are kmaning about gasoline, but GM and Ford announced last week, you mentioned in your segment, SUV sales are pretty brisk, and a lot of people going out and buying Hummers.
So, it really makes you wonder when people really say enough. Is it $2.50 the threshold? Is it $3? The verdict is still out.
CALLAWAY: And is Washington really willing to make the changes that might make a difference in gas prices, and that we mean fuel- efficiency cars, as you just mentioned, and perhaps alternative fuels? Are we going to see that ever happen in Washington?
KARZAD: I don't know. Kind of the last precedent is Jimmy Carter sitting in front of the TV. People watching from living rooms, here she in a sweater exhorting people to be more energy conscience, cut down on consumption. It just doesn't sell, politically, especially in an election year.
You have these guys taking the easy routes, Kerry saying Bush should tap the strategic reserve. That would only be a tempary ease the problem. What this is, is a longer term problem.
Do we have enough supply out there, are we going to run out of oil? Can we keep up at this demand clip? These are very hard questions, and you wonder if anybody running for president's going to take them on.
CALLAWAY: Tapping into the reserves. That's not really a good idea. Is it?
KARZAD: No. That's a rainy day fund. For a lot of the viewers that remember the oil shock from the early '70s, that is a rainy day. When you have the price of oil spike so much that it actually brings the economy grinding to a halt. This is an inconvenience. I mean, people complain about $2 oil, but adjusted for inflation, it's actually cheaper than it was in 1981.
So, if you do see gas spike, the problems in the Middle East flare up to the point that supply is really constrained, only then do you tap the strategic petroleum reserve. It shouldn't be a political tool.
CALLAWAY: And do you think quickly, last question, have we peaked yet?
KARZAD: I'm not sure we have. And I'm not bullish on this, because we're entering the peak driving season. It's starting to warm up, up north. People drive during the summer. They go out on these road trips.
And another thing that I heard, is because of the weak dollar, they're not going to go abraord. So, they're going to plan more of their vacations domestically and consume more gasoline. So, it doesn't look good. We might naturally break that $2
CALLAWAY: And OPEC is smiling, with every comment you make.
KARZAD: They're loving life.
CALLAWAY: Their loving life.
Robin Karzad, thank you very much for being with us.
KARZAD: Thank you.
CALLAAWY: As the world gets smaller, people pick up more illnesses from animals, both wild and domestic. Protecting against those illnesses, coming up.
Lake Powell is in trouble. And we will tell you why.
And the literary arms race. Bill Schneider reviews politics through a book fare.
(COMMERCIAL BREAK)
CALLAWAY: Stories from across America. In New York a published report says the security upgrades for the Statue of Liberty delayed its reopening by raising private funds instead of using money it already had on hand. The "New York Times" says the National Parks Service also slowed the project, because it wasn't sure it wanted to reopen the monument. An observation deck is schedule scheduled to open in July.
And in Denver, Colorado, federal officials say that the reservoir that supplies drinking water for millions of westerners could go dry by the year 2007 if a 5-year-old drought persists. Lake Powell is more than half empty now.
In North Highlands, California, a teacher at a Catholic school says that he was fired, because he offering his 7th graders extra credit for watching the violent, R-rated movie "The passion of the Christ." The school has a policy against assigning students to watch R-rated movies.
Well, some of the world's most serious human diseases came from the animal world. And now scientists are warning that the problem is getting worse and every part of the Earth is at risk. We should warn you that there are some disturbing images in this report. He is CNN's Sharon Collins.
(BEGIN VIDEOTAPE)
SHARON COLLINS, CNN CORRESPONDENT (voice-over): SARS, Mad Cow Disease, ebola, hantavirus and AIDS: they are aggressive, silent and often deadly, and they're all transmitted through human contact with animals.
PETER DASTAN, CONSERVATION MEDICINE CONSORTIUM: If you look at the pathogens we call emerging in humans, 75 percent of them, that's three quarters, are caused by diseases that emerge from domestic and wild animals into humans. It's a major risk for human health, globally. COLLINS: The phenomenon is not new. Of the more than 1,700 known human illnesses, around half come from animals, but in recent years the problem has taken on pandemic proportions, and every part of the Earth at risk.
Scientists say there are many causes for the outbreaks, the pet trade of exotic species, deforestization and the bushmeat (ph) trade top the list. But the main problem...
DASTAN: But one of the common things across all emerging diseases is that they're driven by the things we humans do to the environment, we allow these pathogens to move into the population.
COLLINS: Scientific evidence suggests that as people continue to move more deeply into previously uninhabited areas to live, hunt and farm, new diseases are sure to emerge from increased contact with exotic animals and insects.
DR. NINA MARANO, CDC: The scientific community is concerned, but we are certainly taking steps in terms of research to be able to understand how these viruses mutate and adapt to new hosts.
COLLINS: But although scientists warn that the problem is getting worse, they say there are things that people can do to protect themselves.
MARANO: We probably shouldn't keep wild animals as pets. Simple things like hand-washing. Things like taking all of their antibiotics when they're supposed to. Those are very, very important personal responsibilities that -- so we all play our part.
COLLILNS: Some good advice to survive a worldwide killer problem. Sharon collins, CNN, Atlanta.
(END VIDEOTAPE)
CALLAWAY: Coming up, sometimes she says she's ashamed to be an Israeli. What is bothering this Jewish grandmother from Tel Aviv and what's she doing about it? We'll have her story coming up.
Also, it's a kissing contest, Bali style. And not everyone approves.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired April 4, 2004 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CATHERINE CALLAWAY, CNN ANCHOR: In Spain, explosives were prepared, packed and connected to detonators and the bomber was going to keep on attacking, says the spanish interior minister.
KATHLEEN KOCH, CNN CORRESPONDENT: I'm Kathleen Koch. With gas prices at a record high, we'll tell you who's feeling the pinch most.
CALLAWAY: Hello and welcome everyone to CNN SUNDAY. I'm Catherine Callaway. And we'll have all of those stories for you during this next hour, but we begin with the headlines.
A senior coalition officials tells CNN an ambush in a Shiite neighborhood in Baghdad left four U.S. soldiers dead and at least 40 wounded. The official says the army regained control of five stations htat a militia loyal to a radical Shiite cleric had taken over.
9/11 commission chairment, Tomas Kean says that his panel's final report could be made public as early as July. The panel is scheduled to hear from national security adviser Condoleezza Rice on Thursday. The White House must clear the report for security reasons before it becomes public.
And John Wayne is helping deliver the mail. Not the Pony Express, it's not coming back. The late actor's likeness appears on a new postage stamp unveiled this weekend. That stamp's part of the commemorative series, Legends of Hollywood.
Well, we begin with a day of turmoil in Iraq. Violence erupted across that country with deadly consequences. Four U.S. soldiers were killed during clashes in Baghdad. It happened after gunmen took over some public buildings, including police stations in a Shiite neighborhood. And farther south in Najaf, a huge demonstration there turned deadly when protesters opened fire on a garrison housing Spanish troops. And in the north, a car bomb exploded in Kirkuk.
Let's go right to CNN's Jim Clancy. He's joining us from Baghdad with the latest of all the violence that has occurred there today. Jim, what can you tell us?
JIM CLANCY, CNN CORRESPONDENT: Catherine, as you said, a bloody day, and the most concern, this new front thapt may be opening up with the Shia Muslim militant leader Moqtada Sadr.
Now as you noted, 4 Americans lost their lives, 40 other wounded in an ambush in Sadr City. It used to be called Saddam City, an impoverished slum area in the southern areas. It's a sprawling area of Baghdad where Shia Muslims predominate. It is there also that Moqtada al Sadr has many, many supporters.
The U.S. troops were ambushed as they went 24 to try to take back some police stations that had been taken over. Moqtada Sadr's supporters said to have taken control of police cars weapons and perhaps other things in in Najaf. They also raided some, a police station and took arms and computers.
In Najaf, the site of some of the worst bloodshed during the day, there was fighting between Moqtada al Sadr's supporters and Spanish and Salvadoran troops. Now, there we had 1 Salvadoran soldier killed, 1 U.S. soldier killed who happened to be at that base, as well as a number of others wounded.
But on Moqtada Sadr's side, in that incident, we understand that as many as 20 members of his Medi Army were killed, some 200 others or more may have been wounded.
The numbers are very sketchy today, Catherine, but the concern, has a new front open up with the Shia, the 60 percent majority in this country who up until now have been patient, perhaps opposed to the occupation, but happy with the overthrow of Saddam Hussein and largely backing the U.S. effort. If this is a new front it could be a serious development -- Catherine.
CALLAWAY: That was going to be my question, Jim. Tell us more about this population in Iraq and how large they are.
CLANCY: Well, the Shia Muslims constitute 60 percent. Moqtada Sadr is a militant. He's very young, hes in his 20s, but he does not command a sprawling base of support, if you will. It's very interesting why this is breaking out right now. It is not over the closure of his newspaper, it would appear. It would be because of the arrest of several members of his entourage, including Mustafa Yaqoubi, a top aide, was picked up on Friday night.
Many people thought was in relation to the inflammatory remarks that he had been making. It is not. We understand it is on an Iraqi police arrest warrant charging him with involvement in the assassination, the bloody assassination, of a rival Muslim cleric in an Najaf just about one year ago, on April 10, 2003.
Muqtada Sadr, had long been suspected, accused in that assassination of his rival, but no one had ever charged him. He denied it vehemently. Now someone has been arrested. There are also 12 more warrants waiting. That might explain, in some way why, Muqtada Sadr has retreated to a stronghold in Qufa, called his members there to surround him. He's says he's going to have a sit-in so long as he's there it would seem that he is somewhat distant from the violence going on around right now in four cities around Iraq. But at the same time, it would make him very difficult to arrest -- Catherine.
CALLAWAY: And Jim, in the streets now, I know I spoke with you earlier today, things seemed to have escalated since then. What is the situation now? CLANCY: Well, the streets are calm here in Baghdad proper. In the downtown area. Muqtada Sadr's supporters, if you will, retreated from this area. They have returned, some of them to Sadr City, some to other locations. Sadr City very much the focus.
As we understand it now, more than a dozen U.S. tanks are on the streets. Residents have said, they are afraid to venture out, they're staying buttoned down inside their homes. And it would appear that a battle for those streets, control of those police stations, continues right now.
The question is, what happens tomorrow? Is this another front? Will this lied to more support from Muqtada Sadr? Or will these murder charges come out against one of his top aides who would undermine that support? Critical questions all of them for the U.S. coalition.
CALLAWAY: And I know Jim, I know you'll follow it for us. Thank you, Jim Clancy in Baghdad for us today.
And coming up a little later on this hour, we'll tell you more about the insurgents apparently causing the trouble in Iraq. We'll talk to an expert on the subject. Stay with us for that.
Moving on now to Spain where police say the ringleader of the Madrid train bombings wg among the terrorist suspect that blew themselves up as police closed in on them yesterday. But as CNN's Al Goodman reports, the manhunt is not over.
(BEGIN VIDEOTAPE)
AL GOODMAN, CNN BUREAU CHIEF (voice-over): This is what it looked like Saturday night. Suspected terrorists blew themselves up as the police closed in on their hide out, killing a police officer, and wounding others.
ANGEL ACEBES, SPANISH INTERIOR MINISTER: (through translator): The central core of those who carried out the terrorist attacks have been either arrested, or are deed, killed by the collective suicide bombing of yesterday.
GOODMAN: The dead include this Tunisian, Serhane Ben Abdelmajid Fakhet, the suspected coordinator of the deadly Madrid commuter train bombings last month. Moroccan Abdennabi Kounjaa also was killed. Like the Tunisian, he was wanted on an international arrest warrant for the train bombings.
The apartment where the suspects lived was pulverized by the explosion, and it caused damage throughout the building in Madrid's southern suburbs Leganes.
But authorities say explosives found intact at the apartment after the blast links the suspects to the March 11 Madrid commuter train bombings, and also to the bomb found last Friday on the bullet train tracks south of Madrid. ACEBES (through translator): They found around 200 detonators, ten kilos of unexploded dynamite, and some of this explosive was already prepared, ready for immediate use. The detonators are of the same model that was found in the (UNINTELLIGIBLE) bag in the Aver (ph) track one. Therefore, this suggests all the incidents are related.
GOODMAN: The working class neighborhood has not recovered from the commotion, shocked that terror suspects lived right next door.
UNIDENTIFIED FEMALE (through translator): It was tremendous, an enormous blast. My son was thrown against the sofa, and I don't know what else I can say. It was horrible.
GOODMAN: As people here return to their homes, grim work continued inside the suspected terrorist hideout. And inside this dark van, forensics experts prepared to leave with remains of the suspects.
Spanish leaders turned out Sunday for the funeral of the police officer who also died in Saturday's raid.
(on-camera): Police say the manhunt continues in the Madrid train bombings. At least two terrorist suspects may have escaped police on Saturday and others sought on international arrest warrants apparently remain at large. Al Goodman, CNN, Leganes, Spain.
(END VIDEOTAPE)
CALLAWAY: Back in the U.S., President Bush is at the White House after spending time at Camp David. Meanwhile, the man who wants to unseat him is back on the campaign trail. John Kerry took a brief break last week after shoulder surgery he now plans aggressive speaks. Here's CNN national correspondent, Kelly Wallace, with more.
(BEGIN VIDEOTAPE)
KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): John Kerry's doctor might not be happy when he sees this: the Senator slingless, greeting passerby outside before huddling inside with his foreign policy team. A day earlier he chatted with his economic team.
His top advisers some of the biggest names in the Clinton administration, including former treasury secretary Robert Rubin.
Challenge No. 1, though, for Senator Kerry, who's making the issue of jobs a major part of his campaign, what to say about 300,000 new jobs created in March, the largest one-month increase in four years?
SEN. JOHN KERRY (D-MA) CANDIDATE FOR PRESIDENT: Obviously, all of us are pleased with the job numbers for this month, but there's almost no way this administration will avoid having lost 2 million jobs.
WALLACE: And that's a message aides say the Senator will continue to bring to the campaign trail, and to his ads. Like this new one: ANNOUNCER: George Bush says sending jobs overseas makes sense for America.
WALLACE: Now running in 17 states, considered battleground. Challenge No. 2 for Kerry, getting back on the stump and explaining has he would do as president after a March in which the Bush team spent millions trying to define the Senator as a tax-raising threat to the economy.
UNIDENTIFIED MALE: They will say in focus group, you know, if you listen to people, I don't know much about him I want to know more. When's he going to start talking to us?
WALLACE: And challenge No. 3, keep bringing in the cash. Although just at few months ago, the campaign was strapped, it has not been a problem of late. It announced it raised a record more than $50 million in the first three months of the year, topping what had been the record for a non-incumbent, the $29 million then Governor Bush raised in three months in 1999.
(on camera): And challenge No. 4, no handshaking for at least a week, and no lifting any babies for even longer. Perhaps the biggest challenge for a candidate who's trying to win over voters, one rope line at a time. Kelly Wallace, CNN, New York.
(END VIDEOTAPE)
CALLAWAY: Washington's power over prices at the pump. Can politicians really affect what you pay for gas? Coming up next, we'll ask an expert from "Smartmoney" magazine.
Also, still to come, the dangerous connection between animals and human disease. Why the threat is growing?
Plus this:
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We built this race to send a signal, not just from Bahrain, but from the Middle East, that things are changing. Things are getting better. There's a new drive, a new determination.
(END VIDEO CLIP)
CALLAWAY: The humanitarian mission behind a racetrack in the desert.
(COMMERCIAL BREAK)
CALLAWAY: With gas prices hitting record high, averaging $1.76 nationwide, how are motorists and businesses coping? Our Kathleen Koch has more.
(BEGIN VIDEOTAPE)
KATHLEEN KOCH, CNN CORRESONDENT (voice-over): As gasoline prices continue their climb upward, the hardest hit are bailing out.
UNIDENTIFIED MALE: We can't afford it. I have to start using the bus now.
KOCH: Some small independent truck drivers are sidelined until prices drop.
PAUOL CUTTER JR, OWNER-OPERATOR INDEPENDENT DRIVERS ASSN: You see truck drivers declaring that they're parking their truck. They don't make any money out on the road.
KOCH: Bigger freight carriers are buying diesel fuel in bulk months ahead of time, and using satellite technology to track down affordable fuel on the road.
BOB COSTELLO, AMERICAN TRUCKING ASSN: They can then contact the carriers -- the drivers as they are going down the road and tell them where the cheapest place is to fuel up.
KOCH: Most, like this florist, are being forced to pass on the higher cost of doing business.
LAILA, AZIZI, OWNER, FLOWER TOWN: Now I have to charge a delivery charge of $5 or $8. I try not to, but unfortunately it's very hard now with the gas prices.
KOCH: And some business owners are scaling back.
TOM DOYLE, OWNER, DOYLE PRINTING: We've actually traded in some vehicles, bigger SUVs that we have, the bigger gas-guzzlers, and we've gone to a smaller vehicles to better gas mileage.
KOCH: But few individuals are changing their habits, even when it comes to summer travel.
UNIDENTIFIED FEMALE: I'll probably use the car still, because the distances aren't that far and so I don't think it will make that big a difference.
KOCH: Hybrids that get more than 40 miles per gallon remain a hot commodity.
GINNI GULTON, PRIUS OWNER: You get to drive by the gas station and don't have to stop.
KOCH: But it's the SUV that still rules the road with sales up 14 percent over last year, while sales of small and mid-size cars dropped.
PAUL TAYLOR, CHIEF ECONOMIST, NATL AUTO DEALERS ASSN: I think gasoline prices over $2.50 a gallon in the United States, not just in California, would start to change the selection of vehicles that consumers make. KOCH:
(END VIDEOTAPE) KOCH: And economists say those prices would have to stay high for sometime before most Americans would permanently change their buying or driving habits. Back to you, Catherine.
CALLAWAY: Kathleen koch in Washington, thank you.
Right now gas prices are 30 cents a gallon higher than last year. On average, that adds up to about $30 extra a month in fuel costs. So can Washington do anything to help out? Let's ask Robin Karzad. He's a contributing writer for "Smartmoney" magazine. He's joining us from boston. Thanks for being with us on this Sunday.
ROBIN KARZAD, "SMARTMONEY": Hi Catherine. Thanks for having me.
CALLAWAY: Well, we know certainly that politicians like to talk about it, but how much power, how much control does Washington really have over gas prices, other than adding or subtracting gas tax?
KARZAD: Beyond rhetoric, unfortunately, not much control. But -- in reality, I mean, $2 a gallon gasoline tests the consumer's pain threshold. To the extent we're in an election season, you would seem clueless if you as a politician didn't try to shift blame on the other side.
Look at the Kerry campaign saying that Cheney and Bush, these guys are products of the oil fields. Oil patch brothers, and they profit from these things. It's very much not in their interest to see lower gas prices. But the Bush side counters that this guy's a tax and spend liberal, and he supported a tax hike on gasoline. All this is beside the point actually, because what it boils down to a supply/demand disconnect.
And OPEC now cutting production just last week. Interesting timing on a move by OPEC to do this. What brought that about?
KARZAD: Right, OPEC, you would think, is really living large right now. Gasoline at $2. The price of crude, which is their benchmark, at more than $38 a barrel. That's nearing $40. You would think that there is some room for them to slack it up a bit and offer relief for the economies, but what OPEC is facing here, the reality of it is that their crude exports are dollar denominated.
The dollar has been on this prolonged slide as a currency, eating into their revenues in that the European are getting a better deal, because their currency is stronger against the dollar. On top of that, it's unique in the United States for the first time is feeling the pinch from China and India, as new kids on the block economically. And they have this voracious thirst for oil. And Japan's economy is improving against. Put it all together and there isn't much wiggle room.
CALLAWAY: Almost like a game between these gas-guzzling nations and OPEC, isn't it?
KARZAD: Yes. Whatever OPEC puts out, these people are all too happy to take. Here in the United States, he we are kmaning about gasoline, but GM and Ford announced last week, you mentioned in your segment, SUV sales are pretty brisk, and a lot of people going out and buying Hummers.
So, it really makes you wonder when people really say enough. Is it $2.50 the threshold? Is it $3? The verdict is still out.
CALLAWAY: And is Washington really willing to make the changes that might make a difference in gas prices, and that we mean fuel- efficiency cars, as you just mentioned, and perhaps alternative fuels? Are we going to see that ever happen in Washington?
KARZAD: I don't know. Kind of the last precedent is Jimmy Carter sitting in front of the TV. People watching from living rooms, here she in a sweater exhorting people to be more energy conscience, cut down on consumption. It just doesn't sell, politically, especially in an election year.
You have these guys taking the easy routes, Kerry saying Bush should tap the strategic reserve. That would only be a tempary ease the problem. What this is, is a longer term problem.
Do we have enough supply out there, are we going to run out of oil? Can we keep up at this demand clip? These are very hard questions, and you wonder if anybody running for president's going to take them on.
CALLAWAY: Tapping into the reserves. That's not really a good idea. Is it?
KARZAD: No. That's a rainy day fund. For a lot of the viewers that remember the oil shock from the early '70s, that is a rainy day. When you have the price of oil spike so much that it actually brings the economy grinding to a halt. This is an inconvenience. I mean, people complain about $2 oil, but adjusted for inflation, it's actually cheaper than it was in 1981.
So, if you do see gas spike, the problems in the Middle East flare up to the point that supply is really constrained, only then do you tap the strategic petroleum reserve. It shouldn't be a political tool.
CALLAWAY: And do you think quickly, last question, have we peaked yet?
KARZAD: I'm not sure we have. And I'm not bullish on this, because we're entering the peak driving season. It's starting to warm up, up north. People drive during the summer. They go out on these road trips.
And another thing that I heard, is because of the weak dollar, they're not going to go abraord. So, they're going to plan more of their vacations domestically and consume more gasoline. So, it doesn't look good. We might naturally break that $2
CALLAWAY: And OPEC is smiling, with every comment you make.
KARZAD: They're loving life.
CALLAWAY: Their loving life.
Robin Karzad, thank you very much for being with us.
KARZAD: Thank you.
CALLAAWY: As the world gets smaller, people pick up more illnesses from animals, both wild and domestic. Protecting against those illnesses, coming up.
Lake Powell is in trouble. And we will tell you why.
And the literary arms race. Bill Schneider reviews politics through a book fare.
(COMMERCIAL BREAK)
CALLAWAY: Stories from across America. In New York a published report says the security upgrades for the Statue of Liberty delayed its reopening by raising private funds instead of using money it already had on hand. The "New York Times" says the National Parks Service also slowed the project, because it wasn't sure it wanted to reopen the monument. An observation deck is schedule scheduled to open in July.
And in Denver, Colorado, federal officials say that the reservoir that supplies drinking water for millions of westerners could go dry by the year 2007 if a 5-year-old drought persists. Lake Powell is more than half empty now.
In North Highlands, California, a teacher at a Catholic school says that he was fired, because he offering his 7th graders extra credit for watching the violent, R-rated movie "The passion of the Christ." The school has a policy against assigning students to watch R-rated movies.
Well, some of the world's most serious human diseases came from the animal world. And now scientists are warning that the problem is getting worse and every part of the Earth is at risk. We should warn you that there are some disturbing images in this report. He is CNN's Sharon Collins.
(BEGIN VIDEOTAPE)
SHARON COLLINS, CNN CORRESPONDENT (voice-over): SARS, Mad Cow Disease, ebola, hantavirus and AIDS: they are aggressive, silent and often deadly, and they're all transmitted through human contact with animals.
PETER DASTAN, CONSERVATION MEDICINE CONSORTIUM: If you look at the pathogens we call emerging in humans, 75 percent of them, that's three quarters, are caused by diseases that emerge from domestic and wild animals into humans. It's a major risk for human health, globally. COLLINS: The phenomenon is not new. Of the more than 1,700 known human illnesses, around half come from animals, but in recent years the problem has taken on pandemic proportions, and every part of the Earth at risk.
Scientists say there are many causes for the outbreaks, the pet trade of exotic species, deforestization and the bushmeat (ph) trade top the list. But the main problem...
DASTAN: But one of the common things across all emerging diseases is that they're driven by the things we humans do to the environment, we allow these pathogens to move into the population.
COLLINS: Scientific evidence suggests that as people continue to move more deeply into previously uninhabited areas to live, hunt and farm, new diseases are sure to emerge from increased contact with exotic animals and insects.
DR. NINA MARANO, CDC: The scientific community is concerned, but we are certainly taking steps in terms of research to be able to understand how these viruses mutate and adapt to new hosts.
COLLINS: But although scientists warn that the problem is getting worse, they say there are things that people can do to protect themselves.
MARANO: We probably shouldn't keep wild animals as pets. Simple things like hand-washing. Things like taking all of their antibiotics when they're supposed to. Those are very, very important personal responsibilities that -- so we all play our part.
COLLILNS: Some good advice to survive a worldwide killer problem. Sharon collins, CNN, Atlanta.
(END VIDEOTAPE)
CALLAWAY: Coming up, sometimes she says she's ashamed to be an Israeli. What is bothering this Jewish grandmother from Tel Aviv and what's she doing about it? We'll have her story coming up.
Also, it's a kissing contest, Bali style. And not everyone approves.
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