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New Information Suggests al Qaeda Operatives Lurking in U.S., Plotting Large Scaled Attack This Summer

Aired May 26, 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, CNN ANCHOR: Good morning from CNN headquarters in Atlanta, I'm Daryn Kagan. As always, we start with the headlines.
How will coalition forces work with Baghdad's interim government after June 30? It's a question that Security Council members will consider in a closed-door session this afternoon. A U.S.-British resolution seeks approval of a transitional Iraqi government after the handover of power.

U.S. forces are questioning a high-level aide to radical cleric Muqtada al Sadr. Soldiers arrested Riyadh al Nouri during an overnight raid him in Najaf. U.S. forces also raided the home of another al Sadr aide. He wasn't home but three brothers were taken into custody shortly after the raids. U.S. forces and al Sadr militiamen exchanged fire. And Iraqi hospital officials say that 11 people were killed in that exchange.

Two explosions shook the Karachi, Pakistan neighborhood of the U.S. Consulate General today. The blasts are believed to be car bombs, they happened about a half hour apart, wounded at least seven people.

Lab tests confirm the presence of sarin in an artillery shell used in the May 15 Baghdad roadside bombing. The shell exploded before it could be disarmed, two soldiers were treated for exposure. U.S. military officials say they doubt the insurgents who rigged the roadside device knew that it contained the nerve agent.

And police in Japan have raided several homes as part of an ongoing terror investigation. Several people were taken into custody. The investigation centers on a Frenchman with a suspected al Qaeda tie, who lived in Japan two years ago.

Let's check what we're watching live this hour. Casualties in the war on terror; Amnesty International is releasing its annual report right now in Washington, D.C. The human rights group says that Washington's campaign has created the most sustained siege on human rights and international laws in a half century.

And to Washington, words of warning about the threat of terrorism. Government officials say that new information suggest that al Qaeda operatives are lurking in the U.S. and plotting a large scaled attack this summer. More details and photos of the suspects are expected at this news conference that should start four hours from right now, 2 p.m. Eastern. Our justice correspondent Kelli Arena has more on what to expect.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): As Washington, D.C. prepares to secure the dedication of the World War II Memorial this weekend, U.S. officials confirm a steady stream of intelligence suggesting a major attack on U.S. soil, possibly as early as this summer.

JOHN MILLER, LOS ANGELES POLICE: And there's been a drumbeat behind that information of intelligence, talking about al Qaeda's continued desire to attack in the United States; either in a way that reflects the Madrid attack against a soft public target. Or in the way that falls into the September 11 paradigm.

ARENA: The fact that al Qaeda wants to hit the United States is not new. But officials say the level of corroboration has them concerned. They describe the intelligence, "as credible, but not very specific. No date, method or target mentioned." Big cities that are hosting high-profile events, in coming months, went out their way to assure citizens everything possible is being done to disrupt any terror plans.

LT. KEVIN FOLEY, BOSTON POLICE: To this date, to this time, we have absolutely no credible information regarding a terrorist attack here in Boston. Obviously, we're going to continue to work with our state and federal law enforcement partners, to closely monitor the possibility of a terrorist attack.

ARENA: Counterterrorism sources tell CNN, the FBI is likely to issue be on the lookout alerts for several individuals, but will not elaborate.

(on camera): U.S. officials have no plans at this time to raise the national threat level. But are expected to try to raise national awareness and to outline steps they're taking to prevent a future attack.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: While unsettling, this warning is really not altogether new. Homeland Security Secretary Tom Ridge first warned of a possible summer attack last month. What is new, the reported presence of the al Qaeda operatives and the weekend approach of the threat, with Memorial Day unofficially ushering in the summer season. Earlier today Ridge appeared on CNN'S "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

TOM RIDGE, DIRECTOR, DEPT. HOMELAND SECURITY: We pulled together a variety of agencies within the federal government to say what are we going to do now? How can we accelerate and what additional things can we do over the next several months to just improve our security, and make us safer. And that's precisely what we have been doing every single day.

(END VIDEO CLIP)

KAGAN: Despite the government's warnings, the nation's terror alert does not -- will not be changed. It's at yellow or elevated. It has been at that mid-point of the five-colored scale since January. Officials say that at this point there is no immediate plans to raise that level.

Presidential candidate, John Kerry is delivering a speech today on national security issues. Kerry, of course, the presumptive Democratic nominee, was asked if events like this summer's political conventions can continue under the threat of terrorism.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: You better believe it. As long as I'm involved in it, the terrorists will never shut down a democracy or the ability to function in this country, never. That's what they want and they'll never do it, period.

(END VIDEO CLIP)

KAGAN: The Democratic and Republican political conventions are being held in Boston and New York respectively at the end of the summer.

Join us, 2:00 p.m. Eastern for more on this perceived terrorist threat. We'll have coverage on the news conference that features Attorney General John Ashcroft and FBI director Robert Mueller. That will taking place live from Washington, D.C.

The FBI, meanwhile, is bolstering its terror fighting abilities by enlisting an additional 70,000 police officers. For the first time, local lawmen in New York and Vermont have access to federal information about terror suspects.

Deborah Feyerick has more on that.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): In the months leading up to the 9/11 attacks, three of the 19 hijackers were pulled over for speeding. At the time no one had a clue what they were up to.

But the significance of those traffic stops have not been lost on authorities.

ROBERT MUELLER, DIRECTOR, FBI: We all know terrorists and their supporters are mobile, networked, operate across jurisdictional boundaries. And we can defeat these adversaries only, only if our agencies work together.

FEYERICK: In the first program of its kind, the FBI will soon begin sharing some of its counterterrorism data with New York State troopers, sheriffs and local police. In exchange, the FBI gets lots more foot soldiers. Some 70,000 officers statewide looking for bad guys.

JAMES KALLSTROM, NEW YORK COUNTERTERRORISM ADVISER: The targets may be in places like New York City, Washington, D.C., Chicago, LA or Houston. But the terrorists aren't necessarily there. The terrorists can be in some small town in this great state.

FEYERICK: Officials tell CNN, since 9/11 police in small cities have been frustrated by the lack of intelligence they get, even when the country is on high alert. The database includes people of interest to authorities and those on government watch lists. Once an officer has those details, they may receive guidance from the state's new intelligence center on what to do next.

JAMES KRALICK, SHERIFF, ROCKLAND CO., NEW YORK: It's a major step forward for that cop on the street.

FEYERICK: Officials say the intelligence data cannot be used to go on fishing expeditions; a violation of civil liberties.

UNIDENTIFIED MALE: Our goal is very simple, to do everything in our power to prevent another terrorist attack.

FEYERICK: Officials say the program is not yet fool proof. For example, potential terrorists may remain under the radar, like the three 9/11 hijackers stopped for speeding and let go. If the program does work, the FBI plans to expand it across the country.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

KAGAN: The U.S. may more than double the reward for Abu Musab al Zarqawi, a Jordanian linked al Qaeda. One senior State Department officials says the bounty could be raised from $10 million to $25 million, the amount that is now offered for Usama bin Laden. Zarqawi has claimed responsibility for a series of attacks and is blamed in the recent videotaped beheading of American Nicholas Berg.

Al Qaeda has a potential 18,000 militants ready to strike targets in the U.S. and Europe. That is the word from a London think tank's annual report. The International Institute for Strategic Studies says the terror network would like to use weapons of mass destruction. The report also says the war in Iraq has helped al Qaeda's recruitment. The assistant director of the London think tank spoke to CNN about the pool of potential terrorists.

(BEGIN VIDEO CLIP)

TERENCE TAYLOR, ASST. DIR., INT'L. INST. FOR STRATEGIC STUDIES: These people have gone through that system and are out in the community. And as you said in your introduction, they're spread across 60 countries. It doesn't mean that all 18,000 that might support al Qaeda are active terrorists. It doesn't mean that. But that's the potential reservoir from which al Qaeda-like groups can draw recruits.

(END VIDEO CLIP)

KAGAN: Senior administration officials say that a Shiite nuclear scientist has emerged as the leading candidate to become the prime minister of Iraq's interim government. Hussaini Shahristani was imprisoned by Saddam Hussein and is considered the favorite of U.N. envoy Lakhdar Brahimi. No decision has been made in selecting the prime minister or other top positions of leadership.

Counting down to that June 30 transfer of power, 35 days out. There is some confusion over the role of international troops, including U.S. soldiers in Iraq.

Our Pentagon correspondent Barbara Starr looks at that issue. Where does the coalition authority end and the Iraqi's begin.

Barbara, good morning.

BARBARA STARR, CNN PENTGON CORRESPONDENT: Indeed. Good morning to you Daryn. Well, today British Prime Minister Tony Blair tried to clear it all up. Coalition troops under coalition command, he said. But still a lot of questions about how it's all going to work.

(BEGIN VIDEO CLIP)

STARR (voice-over): When Iraq takes control of its government five weeks from now, what happens if the U.S. orders a military operation against insurgents and the Iraqis oppose it? From Tony Blair in London to Colin Powell in Washington, to United Nations headquarters in New York, there is confusion. In London, Prime Minister Blair.

TONY BLAIR, PRIME MINISTER, UNITED KINGDOM: So, if there's a political decision, as to whether you go into a place like Fallujah in a particular way, that has to be done with the consent of the Iraqi government. And the final political control remains with the Iraqi government. Now, that's what the transfer of sovereignty means.

STARR: But in Washington, Secretary of State Powell said if U.S. forces trying to accomplish their mission find themselves at odds with Iraqi military units...

COLIN POWELL, SECRETARY OF STATE: The U.S. forces remain under U.S. command. And we'll do it as necessary to protect themselves.

STARR: At the United Nations, all of this is to be sorted out. A new proposed U.S.-British resolution may add to the uncertainty. The proposed resolution has no definite timetable for the withdrawal of U.S. forces, only a call for a review after one year. And an exchange of letters still must be worked out detailing Iraqi military cooperation with the coalition.

At the Pentagon, plans continue for sending troops to Iraq, for at least two years until Iraq can assure its security.

(END VIDEOTAPE)

STARR: And Daryn, earlier today at the Baghdad news briefing, the coalition spokesman Brigadier General Mark Kimmitt indeed said, in the few weeks and days remaining before that turnover on June 30, all the details still remain to be worked out about how U.S. coalition and Iraqi troops work together. But he expressed confidence it could be worked out -- Daryn.

KAGAN: A huge question to figure out. Barbara Starr at the Pentagon. Thank you.

Meanwhile, there are some new finger pointing in the prisoner abuse scandal in Iraq. Today's "Washington Post" reports that a U.S. Army General, sent to bolster intelligence gathering, personally encouraged the use of military dogs to intimidate Iraqi detainees. A U.S. intelligence officer said that Major General Geoffrey Miller said that the technique had been effective with prisoners at Guantanamo Bay Naval Base. The story says the method was authorized under policy approved by Lieutenant General Ricardo Sanchez, the top U.S. commander in Iraq. Earlier on CNN's "AMERICAN MORNING," we had a chance to speak with Brigadier General Janis Karpinski. She says her military police officers were following orders from military intelligence.

(BEGIN VIDEO CLIP)

BRIG. GEN. JANIS KARPINSKI, U.S. ARMY: I don't know who's right. And hopefully as the story unfolds, more information comes out, and people come forward with less fear of reprisals or retributions, I just think that people feel an obligation more and more every day to tell the truth. And to tell what they know.

(END VIDEO CLIP)

KAGAN: On Monday, General Karpinski was suspended from her command of the prison system in Iraq.

Still searching for weapons of mass destruction in that country. Coming up, we're going to hear from the man in charge of the hunt. It's a CNN exclusive.

Also ahead...

(BEGIN VIDEO CLIP)

TOM SELLECK, ACTOR (as General Eisenhower): I remember my first trip to Europe as a young man, I felt blessed to be here and to see it.

(END VIDEO CLIP)

KAGAN: Do you recognize the man playing Ike? That is actually Tom Selleck; you barely recognize him. He's going to stop by to talk with us just ahead about his new military movie.

But first, rising water and rising property damage. We're going to take you live to the land of Lincoln. Homeowners are watching, waiting and hoping for floodwaters to recede.

(COMMERCIAL BREAK)

KAGAN: I want to check in right now on northeastern Illinois. The sense of relief can be measured in inches. Folks along the Des Plaines River, near Chicago, expect the crest to fall well short of what was first feared for that river.

Keith Oppenheim is in the town of Des Plaines with river watch.

Good morning.

KEITH OPPENHEIM, CNN CORRESPONDENT: Hi, Daryn. That's right. There is still some anxiety around here, but things aren't looking as bad as we first thought. You can see the Des Plaines River behind me, and it's moving along at a pretty good pace. And if we take another live camera perspective across the street, at first, things look pretty dry. There was no water around the homes. But as we move on over, you can see the water -- the floodwaters of the Des Plaines River have crept up and are now moving to that submerged garage and making some problems there.

We take you to some tape of the village of Gurnee, which is about 20 miles north of where we are now. In the last couple of days, they've had all kinds of problems there, with a good 24 families being forced to evacuate. And it's because of the images of Gurnee that people down river here, in Des Plaines, did a lot to get ready.

So taking you back to this backyard. You can see all the preparations that were done and all the sandbags that were put behind this house. The thought was and the predictions were that the river would rise to just about here. Eleven feet, a good 6 feet -- or rather 5 feet I should say, above flood stage. That's not what has happened. We walked down through the backyard to where the river is now. And it's actually about eight feet now and expected to go up just another foot. And that's a big difference between 9 feet and 11 feet. And that's why folks around here are hoping that that prediction is correct.

They know sometimes the predictions are wrong. They turned out not to be right a couple days ago. But now it appears that the situation is going to be kind of a drag, in terms of trying to handle their lives. But it won't be a disaster.

Back to you.

KAGAN: Meanwhile, Keith, I understand the town has had plans for a pumping station back since the '80s but that it's not finished yet.

OPPENHEIM: That's right. It's been delayed. And it was supposed to be done by the end of this year and also a floodwall by next year. And so, politics and disasters are often intertwined. In this case, those things are not done in time prior to the arrival of this flood. So, there are some folks who are pretty irritated about that, understandably.

KAGAN: Keith Oppenheim in Illinois. Thank you for that.

Of course, the big question for folks there and across the Midwest, what will Mother Nature deliver today? And that's why we have Orelon Sidney on board to tell us more about that.

ORELON SIDNEY, CNN METEOROLOGIST: Thanks a lot, Daryn.

KAGAN: Orelon, did you get to New York City?

SIDNEY: No, I didn't. As a matter of fact I think we have a real pretty picture...

KAGAN: Yes. Fleet Week.

SIDNEY: ... if I'm not mistaken of ships coming into the hahbah. I'm not sure what the hahbah is called.

(LAUGHTER)

KAGAN: Well, this is Fleet Week. Over 3,500 sailors and Marines, as well as 10 Navy ships scheduled to participate. Look like they're going to get some OK weather. A little hazy, perhaps?

SIDNEY: A little bit of fog, I think. And there are some showers around too. So that may kind of put a damper on things. And there will be some rainfall through much of the day, but hopefully nothing in the form of severe thunderstorms.

KAGAN: All right. We'll have much more from New York City. Our Jason Carroll standing by for Fleet Week, so we'll get to see some of those sailors and Marines.

Thank you so much, Orelon Sidney.

SIDNEY: You're welcome.

KAGAN: Concerns about Iraqi scientist with chemical weapons expertise possibly helping terrorists. Coming up on CNN LIVE TODAY, an exclusive interview with Charles Duelfer in Iraq. That is the man in charge of search for WMD.

And how to get the most from those discount drug cards. Gerri Willis has been doing her homework on that.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn, good to see you. You can start using them June 1. How do you pick the right one? We'll be back to tell you when we come back.

(COMMERCIAL BREAK)

KAGAN: We are talking prescription drugs. and the way a lot of seniors buy those prescriptions is about to change significantly. Their new drug cards that go into effect on June 1. They should save you money.

(BEGIN VIDEO CLIP) TRUDY LIEBERMAN, CONSUMERS UNION: Our study found that there were substantial benefits to consumers, and that some of the savings are substantial and significant. And some people will benefit from these cards.

(END VIDEO CLIP)

KAGAN: All right. So far so good. However, there are dozens of options to pick from and choosing the right card could be tricky. That's why we have Gerri Willis here, CNN Financial News consumer guru, goddess to all of us.

WILLIS: Oh! I love that, my goodness.

KAGAN: We have a new title for you.

WILLIS: Hi, Daryn.

KAGAN: Good morning. Let's talk hard. What do people need to know?

WILLIS: Well, you know, you can pick a card. It is not as hard as you think it is; you can get it done before June 1. And here's what you'll get for your trouble. You'll get a 10 to 15 percent discount on many drugs. Some drugs you'll get a discount of as much as 25 percent. Now, you're going to pay 30 bucks for the privilege, but it's going to buy you returns for some time.

OK. How do you do this? You want to make sure that you make a decision that you can be happy with through November 15, because that's going to be the first time you can change the card, Daryn. One of those nasty little details we're just starting to hear about, some of those drug discounts and prices are going to be changing week to week. So you're going to have to pay lots of attention -- Daryn.

KAGAN: The next tip is talking about seeing if a card is in your best interest. Are you saying some people might be better off even not having the card?

WILLIS: That's right, Daryn. Let's start with the people who should get these cards. Check this out. Obviously, if you have no drug coverage at all, you're better off with this thing. If you have a Medigap policy not covering prescriptions, you're bet better off with these cards. You can see the list here. And then we'll show you the list of discount drugs cards where you don't want one of these things. You don't need one of these if your HMO actually has a terrific benefit covering both generic and brand name drugs. Or if you belong to a state plan that gives you a better deal, check that out.

We're also going to have this up on money.com. I know this is a lot of details -- Daryn.

KAGAN: And then, of course, it wouldn't be so simple as just one card, there's a zillion practically. So how do you pick the one that best suits your needs? WILLIS: Yes. Well, absolutely true. And it's all about which drugs you absolutely have to take, because different cards offer different discounts. So you want the biggest discount for the drugs that you take, the combination of drugs you take. Medicare.gov will help you work out which one is best for you in your area. If you're not web savvy, that's OK, too. Call 1-800-medicare, they'll help you over the telephone.

Now, just a word of warning here. If somebody is coming to you at your front door and calling you on the telephone trying to push one of these cards, don't have that conversation. There's a lot of fraud out there around this program, you should initiate the first contact.

KAGAN: Very important. This sounds like a lot of scams that are just on the verge of taking place.

Now, this isn't a scam though. For some people though, there might be an additional $600 credit they can get.

WILLIS: That's right. If your income meets certain limits, you're going to get more money. Six hundred dollars, in fact, to spend on drugs. Here is the income limit for singles $12,569. If you're married $16,826. You get a few extra bucks here. It can be very meaningful. And this is going to take you over and above the drug discounts.

KAGAN: Then very important, the drug cards are one thing, insurance is another. Don't drop any kind of health coverage that you have just because you're getting one of these cards.

WILLIS: Right. You know, a lot of people, Daryn, out there saying this is sort of a Band-Aid right now for a lot of people out there right who don't have drug coverage. It's not the answer to all of your problems. So for goodness sake, don't drop any insurance coverage that you have. And keep in mind, this isn't going to protect you from rising prices. Recent study out today, drug companies have been raising their prices on the top 30 brands at a rate of 22 percent over the last three years.

This isn't going to solve that problem, but is going to help. A lot of people going to get a lot of help here, Daryn, and it's worth the trouble to call 1-800-medicare, or to go to the website to get details.

KAGAN: I appreciate the tips. A lot of people out there need that guidance. Gerri, thank you for that.

WILLIS: You're welcome.

KAGAN: The war on terror and its effect on human rights. Amnesty International is out with a new report this morning. It slams the U.S. We'll tell you what it says.

Plus, he's played a cowboy, a Private I, now he is a World War II general. Actor Tom Selleck joins me to talk about his latest project. He plays General Eisenhower. This is CNN LIVE TODAY.

(COMMERCIAL BREAK)

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Aired May 26, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from CNN headquarters in Atlanta, I'm Daryn Kagan. As always, we start with the headlines.
How will coalition forces work with Baghdad's interim government after June 30? It's a question that Security Council members will consider in a closed-door session this afternoon. A U.S.-British resolution seeks approval of a transitional Iraqi government after the handover of power.

U.S. forces are questioning a high-level aide to radical cleric Muqtada al Sadr. Soldiers arrested Riyadh al Nouri during an overnight raid him in Najaf. U.S. forces also raided the home of another al Sadr aide. He wasn't home but three brothers were taken into custody shortly after the raids. U.S. forces and al Sadr militiamen exchanged fire. And Iraqi hospital officials say that 11 people were killed in that exchange.

Two explosions shook the Karachi, Pakistan neighborhood of the U.S. Consulate General today. The blasts are believed to be car bombs, they happened about a half hour apart, wounded at least seven people.

Lab tests confirm the presence of sarin in an artillery shell used in the May 15 Baghdad roadside bombing. The shell exploded before it could be disarmed, two soldiers were treated for exposure. U.S. military officials say they doubt the insurgents who rigged the roadside device knew that it contained the nerve agent.

And police in Japan have raided several homes as part of an ongoing terror investigation. Several people were taken into custody. The investigation centers on a Frenchman with a suspected al Qaeda tie, who lived in Japan two years ago.

Let's check what we're watching live this hour. Casualties in the war on terror; Amnesty International is releasing its annual report right now in Washington, D.C. The human rights group says that Washington's campaign has created the most sustained siege on human rights and international laws in a half century.

And to Washington, words of warning about the threat of terrorism. Government officials say that new information suggest that al Qaeda operatives are lurking in the U.S. and plotting a large scaled attack this summer. More details and photos of the suspects are expected at this news conference that should start four hours from right now, 2 p.m. Eastern. Our justice correspondent Kelli Arena has more on what to expect.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): As Washington, D.C. prepares to secure the dedication of the World War II Memorial this weekend, U.S. officials confirm a steady stream of intelligence suggesting a major attack on U.S. soil, possibly as early as this summer.

JOHN MILLER, LOS ANGELES POLICE: And there's been a drumbeat behind that information of intelligence, talking about al Qaeda's continued desire to attack in the United States; either in a way that reflects the Madrid attack against a soft public target. Or in the way that falls into the September 11 paradigm.

ARENA: The fact that al Qaeda wants to hit the United States is not new. But officials say the level of corroboration has them concerned. They describe the intelligence, "as credible, but not very specific. No date, method or target mentioned." Big cities that are hosting high-profile events, in coming months, went out their way to assure citizens everything possible is being done to disrupt any terror plans.

LT. KEVIN FOLEY, BOSTON POLICE: To this date, to this time, we have absolutely no credible information regarding a terrorist attack here in Boston. Obviously, we're going to continue to work with our state and federal law enforcement partners, to closely monitor the possibility of a terrorist attack.

ARENA: Counterterrorism sources tell CNN, the FBI is likely to issue be on the lookout alerts for several individuals, but will not elaborate.

(on camera): U.S. officials have no plans at this time to raise the national threat level. But are expected to try to raise national awareness and to outline steps they're taking to prevent a future attack.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: While unsettling, this warning is really not altogether new. Homeland Security Secretary Tom Ridge first warned of a possible summer attack last month. What is new, the reported presence of the al Qaeda operatives and the weekend approach of the threat, with Memorial Day unofficially ushering in the summer season. Earlier today Ridge appeared on CNN'S "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

TOM RIDGE, DIRECTOR, DEPT. HOMELAND SECURITY: We pulled together a variety of agencies within the federal government to say what are we going to do now? How can we accelerate and what additional things can we do over the next several months to just improve our security, and make us safer. And that's precisely what we have been doing every single day.

(END VIDEO CLIP)

KAGAN: Despite the government's warnings, the nation's terror alert does not -- will not be changed. It's at yellow or elevated. It has been at that mid-point of the five-colored scale since January. Officials say that at this point there is no immediate plans to raise that level.

Presidential candidate, John Kerry is delivering a speech today on national security issues. Kerry, of course, the presumptive Democratic nominee, was asked if events like this summer's political conventions can continue under the threat of terrorism.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: You better believe it. As long as I'm involved in it, the terrorists will never shut down a democracy or the ability to function in this country, never. That's what they want and they'll never do it, period.

(END VIDEO CLIP)

KAGAN: The Democratic and Republican political conventions are being held in Boston and New York respectively at the end of the summer.

Join us, 2:00 p.m. Eastern for more on this perceived terrorist threat. We'll have coverage on the news conference that features Attorney General John Ashcroft and FBI director Robert Mueller. That will taking place live from Washington, D.C.

The FBI, meanwhile, is bolstering its terror fighting abilities by enlisting an additional 70,000 police officers. For the first time, local lawmen in New York and Vermont have access to federal information about terror suspects.

Deborah Feyerick has more on that.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): In the months leading up to the 9/11 attacks, three of the 19 hijackers were pulled over for speeding. At the time no one had a clue what they were up to.

But the significance of those traffic stops have not been lost on authorities.

ROBERT MUELLER, DIRECTOR, FBI: We all know terrorists and their supporters are mobile, networked, operate across jurisdictional boundaries. And we can defeat these adversaries only, only if our agencies work together.

FEYERICK: In the first program of its kind, the FBI will soon begin sharing some of its counterterrorism data with New York State troopers, sheriffs and local police. In exchange, the FBI gets lots more foot soldiers. Some 70,000 officers statewide looking for bad guys.

JAMES KALLSTROM, NEW YORK COUNTERTERRORISM ADVISER: The targets may be in places like New York City, Washington, D.C., Chicago, LA or Houston. But the terrorists aren't necessarily there. The terrorists can be in some small town in this great state.

FEYERICK: Officials tell CNN, since 9/11 police in small cities have been frustrated by the lack of intelligence they get, even when the country is on high alert. The database includes people of interest to authorities and those on government watch lists. Once an officer has those details, they may receive guidance from the state's new intelligence center on what to do next.

JAMES KRALICK, SHERIFF, ROCKLAND CO., NEW YORK: It's a major step forward for that cop on the street.

FEYERICK: Officials say the intelligence data cannot be used to go on fishing expeditions; a violation of civil liberties.

UNIDENTIFIED MALE: Our goal is very simple, to do everything in our power to prevent another terrorist attack.

FEYERICK: Officials say the program is not yet fool proof. For example, potential terrorists may remain under the radar, like the three 9/11 hijackers stopped for speeding and let go. If the program does work, the FBI plans to expand it across the country.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

KAGAN: The U.S. may more than double the reward for Abu Musab al Zarqawi, a Jordanian linked al Qaeda. One senior State Department officials says the bounty could be raised from $10 million to $25 million, the amount that is now offered for Usama bin Laden. Zarqawi has claimed responsibility for a series of attacks and is blamed in the recent videotaped beheading of American Nicholas Berg.

Al Qaeda has a potential 18,000 militants ready to strike targets in the U.S. and Europe. That is the word from a London think tank's annual report. The International Institute for Strategic Studies says the terror network would like to use weapons of mass destruction. The report also says the war in Iraq has helped al Qaeda's recruitment. The assistant director of the London think tank spoke to CNN about the pool of potential terrorists.

(BEGIN VIDEO CLIP)

TERENCE TAYLOR, ASST. DIR., INT'L. INST. FOR STRATEGIC STUDIES: These people have gone through that system and are out in the community. And as you said in your introduction, they're spread across 60 countries. It doesn't mean that all 18,000 that might support al Qaeda are active terrorists. It doesn't mean that. But that's the potential reservoir from which al Qaeda-like groups can draw recruits.

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KAGAN: Senior administration officials say that a Shiite nuclear scientist has emerged as the leading candidate to become the prime minister of Iraq's interim government. Hussaini Shahristani was imprisoned by Saddam Hussein and is considered the favorite of U.N. envoy Lakhdar Brahimi. No decision has been made in selecting the prime minister or other top positions of leadership.

Counting down to that June 30 transfer of power, 35 days out. There is some confusion over the role of international troops, including U.S. soldiers in Iraq.

Our Pentagon correspondent Barbara Starr looks at that issue. Where does the coalition authority end and the Iraqi's begin.

Barbara, good morning.

BARBARA STARR, CNN PENTGON CORRESPONDENT: Indeed. Good morning to you Daryn. Well, today British Prime Minister Tony Blair tried to clear it all up. Coalition troops under coalition command, he said. But still a lot of questions about how it's all going to work.

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STARR (voice-over): When Iraq takes control of its government five weeks from now, what happens if the U.S. orders a military operation against insurgents and the Iraqis oppose it? From Tony Blair in London to Colin Powell in Washington, to United Nations headquarters in New York, there is confusion. In London, Prime Minister Blair.

TONY BLAIR, PRIME MINISTER, UNITED KINGDOM: So, if there's a political decision, as to whether you go into a place like Fallujah in a particular way, that has to be done with the consent of the Iraqi government. And the final political control remains with the Iraqi government. Now, that's what the transfer of sovereignty means.

STARR: But in Washington, Secretary of State Powell said if U.S. forces trying to accomplish their mission find themselves at odds with Iraqi military units...

COLIN POWELL, SECRETARY OF STATE: The U.S. forces remain under U.S. command. And we'll do it as necessary to protect themselves.

STARR: At the United Nations, all of this is to be sorted out. A new proposed U.S.-British resolution may add to the uncertainty. The proposed resolution has no definite timetable for the withdrawal of U.S. forces, only a call for a review after one year. And an exchange of letters still must be worked out detailing Iraqi military cooperation with the coalition.

At the Pentagon, plans continue for sending troops to Iraq, for at least two years until Iraq can assure its security.

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STARR: And Daryn, earlier today at the Baghdad news briefing, the coalition spokesman Brigadier General Mark Kimmitt indeed said, in the few weeks and days remaining before that turnover on June 30, all the details still remain to be worked out about how U.S. coalition and Iraqi troops work together. But he expressed confidence it could be worked out -- Daryn.

KAGAN: A huge question to figure out. Barbara Starr at the Pentagon. Thank you.

Meanwhile, there are some new finger pointing in the prisoner abuse scandal in Iraq. Today's "Washington Post" reports that a U.S. Army General, sent to bolster intelligence gathering, personally encouraged the use of military dogs to intimidate Iraqi detainees. A U.S. intelligence officer said that Major General Geoffrey Miller said that the technique had been effective with prisoners at Guantanamo Bay Naval Base. The story says the method was authorized under policy approved by Lieutenant General Ricardo Sanchez, the top U.S. commander in Iraq. Earlier on CNN's "AMERICAN MORNING," we had a chance to speak with Brigadier General Janis Karpinski. She says her military police officers were following orders from military intelligence.

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BRIG. GEN. JANIS KARPINSKI, U.S. ARMY: I don't know who's right. And hopefully as the story unfolds, more information comes out, and people come forward with less fear of reprisals or retributions, I just think that people feel an obligation more and more every day to tell the truth. And to tell what they know.

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KAGAN: On Monday, General Karpinski was suspended from her command of the prison system in Iraq.

Still searching for weapons of mass destruction in that country. Coming up, we're going to hear from the man in charge of the hunt. It's a CNN exclusive.

Also ahead...

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TOM SELLECK, ACTOR (as General Eisenhower): I remember my first trip to Europe as a young man, I felt blessed to be here and to see it.

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KAGAN: Do you recognize the man playing Ike? That is actually Tom Selleck; you barely recognize him. He's going to stop by to talk with us just ahead about his new military movie.

But first, rising water and rising property damage. We're going to take you live to the land of Lincoln. Homeowners are watching, waiting and hoping for floodwaters to recede.

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KAGAN: I want to check in right now on northeastern Illinois. The sense of relief can be measured in inches. Folks along the Des Plaines River, near Chicago, expect the crest to fall well short of what was first feared for that river.

Keith Oppenheim is in the town of Des Plaines with river watch.

Good morning.

KEITH OPPENHEIM, CNN CORRESPONDENT: Hi, Daryn. That's right. There is still some anxiety around here, but things aren't looking as bad as we first thought. You can see the Des Plaines River behind me, and it's moving along at a pretty good pace. And if we take another live camera perspective across the street, at first, things look pretty dry. There was no water around the homes. But as we move on over, you can see the water -- the floodwaters of the Des Plaines River have crept up and are now moving to that submerged garage and making some problems there.

We take you to some tape of the village of Gurnee, which is about 20 miles north of where we are now. In the last couple of days, they've had all kinds of problems there, with a good 24 families being forced to evacuate. And it's because of the images of Gurnee that people down river here, in Des Plaines, did a lot to get ready.

So taking you back to this backyard. You can see all the preparations that were done and all the sandbags that were put behind this house. The thought was and the predictions were that the river would rise to just about here. Eleven feet, a good 6 feet -- or rather 5 feet I should say, above flood stage. That's not what has happened. We walked down through the backyard to where the river is now. And it's actually about eight feet now and expected to go up just another foot. And that's a big difference between 9 feet and 11 feet. And that's why folks around here are hoping that that prediction is correct.

They know sometimes the predictions are wrong. They turned out not to be right a couple days ago. But now it appears that the situation is going to be kind of a drag, in terms of trying to handle their lives. But it won't be a disaster.

Back to you.

KAGAN: Meanwhile, Keith, I understand the town has had plans for a pumping station back since the '80s but that it's not finished yet.

OPPENHEIM: That's right. It's been delayed. And it was supposed to be done by the end of this year and also a floodwall by next year. And so, politics and disasters are often intertwined. In this case, those things are not done in time prior to the arrival of this flood. So, there are some folks who are pretty irritated about that, understandably.

KAGAN: Keith Oppenheim in Illinois. Thank you for that.

Of course, the big question for folks there and across the Midwest, what will Mother Nature deliver today? And that's why we have Orelon Sidney on board to tell us more about that.

ORELON SIDNEY, CNN METEOROLOGIST: Thanks a lot, Daryn.

KAGAN: Orelon, did you get to New York City?

SIDNEY: No, I didn't. As a matter of fact I think we have a real pretty picture...

KAGAN: Yes. Fleet Week.

SIDNEY: ... if I'm not mistaken of ships coming into the hahbah. I'm not sure what the hahbah is called.

(LAUGHTER)

KAGAN: Well, this is Fleet Week. Over 3,500 sailors and Marines, as well as 10 Navy ships scheduled to participate. Look like they're going to get some OK weather. A little hazy, perhaps?

SIDNEY: A little bit of fog, I think. And there are some showers around too. So that may kind of put a damper on things. And there will be some rainfall through much of the day, but hopefully nothing in the form of severe thunderstorms.

KAGAN: All right. We'll have much more from New York City. Our Jason Carroll standing by for Fleet Week, so we'll get to see some of those sailors and Marines.

Thank you so much, Orelon Sidney.

SIDNEY: You're welcome.

KAGAN: Concerns about Iraqi scientist with chemical weapons expertise possibly helping terrorists. Coming up on CNN LIVE TODAY, an exclusive interview with Charles Duelfer in Iraq. That is the man in charge of search for WMD.

And how to get the most from those discount drug cards. Gerri Willis has been doing her homework on that.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn, good to see you. You can start using them June 1. How do you pick the right one? We'll be back to tell you when we come back.

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KAGAN: We are talking prescription drugs. and the way a lot of seniors buy those prescriptions is about to change significantly. Their new drug cards that go into effect on June 1. They should save you money.

(BEGIN VIDEO CLIP) TRUDY LIEBERMAN, CONSUMERS UNION: Our study found that there were substantial benefits to consumers, and that some of the savings are substantial and significant. And some people will benefit from these cards.

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KAGAN: All right. So far so good. However, there are dozens of options to pick from and choosing the right card could be tricky. That's why we have Gerri Willis here, CNN Financial News consumer guru, goddess to all of us.

WILLIS: Oh! I love that, my goodness.

KAGAN: We have a new title for you.

WILLIS: Hi, Daryn.

KAGAN: Good morning. Let's talk hard. What do people need to know?

WILLIS: Well, you know, you can pick a card. It is not as hard as you think it is; you can get it done before June 1. And here's what you'll get for your trouble. You'll get a 10 to 15 percent discount on many drugs. Some drugs you'll get a discount of as much as 25 percent. Now, you're going to pay 30 bucks for the privilege, but it's going to buy you returns for some time.

OK. How do you do this? You want to make sure that you make a decision that you can be happy with through November 15, because that's going to be the first time you can change the card, Daryn. One of those nasty little details we're just starting to hear about, some of those drug discounts and prices are going to be changing week to week. So you're going to have to pay lots of attention -- Daryn.

KAGAN: The next tip is talking about seeing if a card is in your best interest. Are you saying some people might be better off even not having the card?

WILLIS: That's right, Daryn. Let's start with the people who should get these cards. Check this out. Obviously, if you have no drug coverage at all, you're better off with this thing. If you have a Medigap policy not covering prescriptions, you're bet better off with these cards. You can see the list here. And then we'll show you the list of discount drugs cards where you don't want one of these things. You don't need one of these if your HMO actually has a terrific benefit covering both generic and brand name drugs. Or if you belong to a state plan that gives you a better deal, check that out.

We're also going to have this up on money.com. I know this is a lot of details -- Daryn.

KAGAN: And then, of course, it wouldn't be so simple as just one card, there's a zillion practically. So how do you pick the one that best suits your needs? WILLIS: Yes. Well, absolutely true. And it's all about which drugs you absolutely have to take, because different cards offer different discounts. So you want the biggest discount for the drugs that you take, the combination of drugs you take. Medicare.gov will help you work out which one is best for you in your area. If you're not web savvy, that's OK, too. Call 1-800-medicare, they'll help you over the telephone.

Now, just a word of warning here. If somebody is coming to you at your front door and calling you on the telephone trying to push one of these cards, don't have that conversation. There's a lot of fraud out there around this program, you should initiate the first contact.

KAGAN: Very important. This sounds like a lot of scams that are just on the verge of taking place.

Now, this isn't a scam though. For some people though, there might be an additional $600 credit they can get.

WILLIS: That's right. If your income meets certain limits, you're going to get more money. Six hundred dollars, in fact, to spend on drugs. Here is the income limit for singles $12,569. If you're married $16,826. You get a few extra bucks here. It can be very meaningful. And this is going to take you over and above the drug discounts.

KAGAN: Then very important, the drug cards are one thing, insurance is another. Don't drop any kind of health coverage that you have just because you're getting one of these cards.

WILLIS: Right. You know, a lot of people, Daryn, out there saying this is sort of a Band-Aid right now for a lot of people out there right who don't have drug coverage. It's not the answer to all of your problems. So for goodness sake, don't drop any insurance coverage that you have. And keep in mind, this isn't going to protect you from rising prices. Recent study out today, drug companies have been raising their prices on the top 30 brands at a rate of 22 percent over the last three years.

This isn't going to solve that problem, but is going to help. A lot of people going to get a lot of help here, Daryn, and it's worth the trouble to call 1-800-medicare, or to go to the website to get details.

KAGAN: I appreciate the tips. A lot of people out there need that guidance. Gerri, thank you for that.

WILLIS: You're welcome.

KAGAN: The war on terror and its effect on human rights. Amnesty International is out with a new report this morning. It slams the U.S. We'll tell you what it says.

Plus, he's played a cowboy, a Private I, now he is a World War II general. Actor Tom Selleck joins me to talk about his latest project. He plays General Eisenhower. This is CNN LIVE TODAY.

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