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CNN Wolf Blitzer Reports

Terror Plot Revealed; Oil Prices on the Rise; Scott Peterson's Trial Gets Under Way

Aired June 01, 2004 - 17:00   ET

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

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


(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Terror plot revealed. New information on al Qaeda and its alleged American recruit.

JAMES COMEY, DEPUTY ATTORNEY GENERAL: Khalid Shaikh Mohammed wanted them to blow up 20 apartment buildings simultaneously.

BLITZER: Target oil. And now a sharp rise in prices. Is the what the terrorists wanted?

Caretakers and car bombs.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The new interim government brings us one step closer to realizing the dream of millions Iraqis.

BLITZER: But for many Iraqis the nightmare continues.

Trial under way. They have no weapon and no clear cause of death. Can prosecutors make their murder case against Scott Peterson?

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, June 1, 2004.

(END VIDEOTAPE)

BLITZER: There are dramatic new accusations against Jose Padilla, the former Chicago gang member detained two years ago on charges he was planning an attack with a so-called dirty bomb. The Justice Department now says the dirty bomb plot was just part of his plan. CNN's Brian Todd and CNN Justice correspondent Kelli Arena are here to tell us what they've learned. Let's start with Kelli -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, the deputy attorney general says that the government is releasing the new information to help people understand why it's doing what it is doing in the war on terror and to help people understand the nature of the threat we face.

(BEGIN VIDEOTAPE)

ARENA (voice-over): He was dubbed the dirty bomber. The government said he planned to set off a radiological device in the United States. Now newly declassified documents alleged Jose Padilla also planned to blow up apartment buildings using natural gas.

COMEY: ... once in the country they locate high-rise apartment buildings that had natural gas supplied to all floors, that they rent two apartments in each building, seal those apartments, turn on the gas, and set timers to detonate and destroy the building simultaneously at a later time.

ARENA: The new documents outline his alleged relationship with al Qaeda leaders including now deceased al Qaeda military Mohammed Atef and September 11 mastermind Khalid Shaikh Mohammed.

The government also sheds new light on his terror training with an emphasis on explosives.

COMEY: On May the 8th, 2002, a soldier of our enemy, a trained, funded and equipped terrorist, stepped off that plane at Chicago's O'Hare. A highly-trained al Qaeda soldier who had accepted an assignment to kill hundreds of innocent men, women and children.

ARENA: The Justice Department cites interrogations with Padilla, but his lawyer says it's one sided government expose of the governments' version of events.

DONNA NEWMAN, PADILLA'S ATTORNEY: The government is simply saying, look, you're going to have to trust us. This is what he said.

I don't know if that's what he said. But more important, there was nothing in that report that suggested any imminent danger.

ARENA: The deputy attorney general denies the timing of the release has anything to do with Padilla's pending Supreme Court case.

(END VIDEOTAPE)

ARENA: The high court is expected to rule whether the government has the authority to hold U.S. citizens indefinitely as enemy combatants by the end of this month -- Wolf.

BLITZER: Are they explaining to you, Kelli, why now? Why they have come public with all these accusations right now?

ARENA: What they said was that this was a request by Congress to -- for justification. That they had to go to the Department of Defense. The Department of Defense did not classify these papers until just eventually. Justice got it, they gave it to Congress and then they had to wait for Congress to release the paperwork and then DOJ could comment.

And that's why they explained that they didn't do it until today. They said actually they would have liked to have done it much sooner.

BLITZER: All right, Kelli Arena with that. Thanks very much, Kelli.

Brian Todd has been looking to one fascinating aspect of how this story has unfolded, how Jose Padilla allegedly joined al Qaeda -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, there was a very short part of that Justice Department news conference where the deputy attorney general offered some chilling insight into the structure of al Qaeda.

(BEGIN VIDEOTAPE)

TODD (voice-over): In a stunning narrative of Jose Padilla's four-year odyssey as an alleged terrorist one account stands out. According to the deputy attorney general, the incident occurred in July of 2000, after Padilla allegedly made his way from Yemen to Afghanistan.

COMEY: He has admitted that there he completed an application to receive training at an al Qaeda camp, sponsored by the man he met in Yemen, who helped him fill out the paperwork.

TODD: Paperwork, an application to join an al Qaeda training camp. The Justice Department says the FBI found the application in a binder that contained 100 other similar documents.

COMEY: Typewritten, each with the title at the top, "Mujahideen identification form/new applicant form."

TODD: To the casual observer this is almost shocking in its officiality. Does al Qaeda really have formal written applications? Terrorism experts we spoke to say don't think of this like an IBM application.

KEN ROBINSON, CNN MILITARY INTELLIGENCE ANALYST: There were biops that were sworn, there were oaths of allegiance which were written down and sworn to Osama bin Laden and to others and for the affirmation of desire to do jihad.

TODD: Much of this documentation was recovered after the fall of Kandahar and Kabul early on the war on terror. Often, experts say, a prospective al Qaeda member would simply write down his desires, his philosophies on jihad so al Qaeda leaders could gauge his level of commitment.

They also might include certain skills they had. But experts say that type of structure and screening was more common in al Qaeda before September 11.

PETER BERGEN, CNN TERRORISM ANALYST: Al Qaeda the organization took a big hit after the fall of the Taliban. So it's not as organized as it was before.

TODD: As for an actual form, experts say that's also not inconsistent with a terrorist organization known for meticulous record keeping.

ROBINSON: They have to deal with large numbers of people and large amount of money. And the devil is in the details.

TODD: For his part, Padilla claims he never made a former pledge of loyalty to Osama bin Laden, and therefore was not a member of al Qaeda.

(END VIDEOTAPE)

TODD: Still, U.S. officials say that application for the al Qaeda training camp bore one of Padilla's aliases and showed that he was an American citizen who spoke fluent English, Spanish and Arabic -- Wolf.

BLITZER: Brian Todd with that part of the story. Thanks, Brian, very much.

And to our viewers we'll have much more on this case involving Jose Jose Padilla. Later this hour, I'll speak live with his attorney, Andrew Patel.

Iraq got a new government today, caretakers who will run the country through the transition periods in the months ahead. The move gave many Iraqis cause for hope, but two more car bombings left at least 14 people dead and dozens more wounded. Bloody reminders of the difficulties ahead. CNN's Harris Whitbeck reports from Baghdad.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (through translator): I present to you all the president of the Republic of Iraq.

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): Words make Iraqis have been waiting to hear for decades. A new Iraqi government different from Saddam Hussein and more recently planning to be different from the U.S.-led occupation authorities.

U.N. Special Envoy Lakhdar Brahimi spent weeks helping to cobble together the interim government, a presidential council of four plus 31 cabinet ministers.

LAKHDAR BRAHIMI, U.N. SPECIAL ENVOY: I think that the people of Iraq will be praying all over the country for the success of their mission which aims at starting the rebuilding of the new Iraq.

WHITBECK: Interim President Sheikh Ghazi al-Yawar was firm in expressing what he would work towards.

SHEIKH GHAZI AL-YAWAR, IRAQI INTERIM PRESIDENT-DESIGNATE: We, the Iraqis, also look forward to being granted full sovereignty.

WHITBECK: And that promise of sovereignty seemed to spark hope among many Iraqis we talked to. Hope that had not been heard in a long time.

UNIDENTIFIED MALE (through translator): Ghazi's a true Iraqi, and hopefully he will change this country into a better and safer place for the Iraqis.

WHITBECK: Safety and security, the country's biggest concern. The lack of it was driven home again on the streets of Baghdad hours before the presentation ceremony. A car bomb near the Green Zone and near the offices of a Kurdish political party left three dead and 20 injured.

Earlier Tuesday, near Baji, north of Baghdad, a car bomb outside a military base killed 11 Iraqis and wounded 26.

(on camera): Security is just one of many challenges the interim government will face once it takes full political control on June 30. It's immediate challenge, working on a smooth transition with the U.S.-led coalition. And assuring the Iraqi people that a transition to full sovereignty will be a reality.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: And here's your chance to weigh in on this important story. Our "Web Question of the Day" is this: do you think there can be a smooth transition of power in Iraq? You can vote right now. Go to cnn.com/wolf. We'll have the results later in this broadcast.

Is Iraq's new government up to the challenge? I'll speak with the Iraqi representative to the United States, Rend al-Rahim.

Plus this.

(BEGIN VIDEO CLIP)

BUSH: This is a very hopeful day for the Iraqi people and a hopeful day for the American people.

(END VIDEO CLIP)

BLITZER: Voicing optimism. Why the president says he's confident the new government will get the job done.

Saudi oil attacks. New threats from al Qaeda against American companies. But this time the terror groups attacks could backfire.

And the case against Scott Peterson, the prosecution details inconsistencies in his story. We're live from the courthouse.

(COMMERCIAL BREAK)

BLTIZER: President Bush today was quick to offer his support to Iraq's new caretaker government but his administration insists it is not pulling the strings in a marionette show. Let's go live to our White House correspondent, Suzanne Malveax.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, after that rose garden ceremony President Bush called the new Iraqi interim president as well as the prime minister. He said he wanted to work with the new leadership that he was very hopeful and excited about this, but as you know, Wolf, these leaders are untested.

(BEGIN VIDEOTAPE)

MALVEAUX: After intense negotiations between the U.S., U.N. and Iraqi officials President Bush said Iraq's new interim government was one he could work with.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The naming of the new interim government brings us one step closer to realizing the dream of millions of Iraqis, a fully sovereign nation with a representative government that protects their rights and serves their needs.

MALVEAUX: The government's makeup mostly of Iraqi exiles with close ties to Washington has raised questions whether Iraqis will consider this new authority to be legitimate. The Bush administration denied handpicking Iraq's new leadership.

BUSH: I had no role in picking, zero.

CONDOLEEZA RICE, NATIONAL SECURITY ADVISER: These are not America's puppets. These are independent-minded Iraqis who are determined to take their country to security and democracy.

MALVEAUX: But there is still a question as to what that will mean for U.S. troops. The president acknowledged that the situation on the ground ought to get worse as the deadline to full Iraqi sovereignty draws near.

BUSH: I believe there will be more violence because there's still violent people who want to stop progress.

MALVEAUX: Earlier in the day Mr. Bush spoke with U.N. Secretary- General Kofi Annan and offered public praise to the international body. Mr. Bush hopes the formation of Iraq's new interim government will help ease the way for a new U.N. security council resolution that will endorse Iraqis sovereignty and establish a multinational force to help provide security, but neither the president nor his advisers said they expected a significant military assistance.

RICE: There could be other states that might be willing to send a few troops here, a few troops there. But no one really believes that we are about to have a massive infusion of foreign forces into Iraq.

(END VIDEOTAPE)

MALVEAUX: So, Wolf, what they are talking about is trying to train the Iraqi police and the military essentially to handle their own security matters. One of the things in this U.N. security council resolution, they are debating on the one side, you have the U.S. as well as Britain talking about the extent of the multilateral force, what they will be able to do. You are also talking about the timetable on the other side, of course, you have a resolution that has been endorsed by China as well as being backed by Russia, the Germans and the French. They are looking at something that essentially may be a little bit beefier in bolstering the authority of the Iraqi interim government.

BLITZER: Suzanne Malveaux at the White House.

Just a short while ago, I discussed the new Iraqi government with Rend Al-Rahim, the Iraqi representative to the United States.

(BEGIN VIDEOTAPE)

BLITZER: Ambassador, thanks once again for joining us. What do you make of this new interim government from the U.S. perspective.

REND AL-RAHIM, IRAQI REP. TO THE UNITED STATES: First of all, I think it's very exciting that we have a new Iraqi government. The suspense over the long period of negotiations and exploration has really been a little trying, I think, for the nerves of Iraqis. So this is a very, very good day.

BLITZER: Are these leaders who have now been named, do they need to be somewhat distanced from the United States in order to have credibility with Iraqis?

AL-RAHIM: I think they need to be seen to have sovereignty and control over the government and affairs of Iraq. That is really the important thing. Even in situations where they decide that their best interest lies with the U.S. and so on. It has to be a sovereign Iraqi decision. This is the important issue. Not whether we are with the U.S. or not. I think most Iraqis do understand that our interest lies with having the U.S. as our friend, as our partner, that the path of Iraq and U.S. will run together. But it has to be an independent Iraqi decision.

BLITZER: The prime minister, Iyad Allawi, a Shiite Muslim, someone that had been very close to the CIA over the years, how does he get over this allegation he's a puppet of the U.S.?

AL-RAHIM: This is a nonsense that he is a puppet. After all, he was supported by the U.S. or worked with the U.S. because he was trying to unseat the regime of Saddam Hussein. In other words, because he was a patriot and cared about the Iraqi people. And in the end, people judge -- will judge by actions and decisions and not by secondary affairs.

BLITZER: The president, a Sunni Muslim, Ghaza al-Yawar, he's not necessarily simply a ceremonial president, is he?

AL-RAHIM: I think Mr. al-Yawar is a very outspoken person. He has a very forceful personality and he's very widely respected in Iraq.

BLITZER: Does he reassure the Sunni minority that there will be a place at the table for them?

AL-RAHIM: Indeed he should because he is widely respected especially within the Sunni community but not only there. He has proven himself, by the way, an effective member of the governing council during the last year.

BLITZER: There's Kurdish representation, too, one of the deputy presidents is a Kurd, the foreign minister is a Kurd.

AL-RAHIM: The deputy prime minister is also a Kurd. BLITZER: So this is a delicate balancing act. Do you believe it will have credibility, though, with rank and file Iraqis.

AL-RAHIM: Wolf, I think this is an extraordinary representative government, cabinet. Even more so than the governing council was. I think the governing council was pretty representative but this really brings -- ties the entire country together and gives the important elements of the country, political life, and social life, a stake in the political process. And I think this is important.

BLITZER: What, if anything, should we read into the fact that Ahmed Chalabi's name is not among those 33 ministers.

AL-RAHIM: I don't think we should count Dr. Chalabi out. He is an important personality on the Iraqi scene. He's a very resilient person. And eventually we're going to have elections in January. I think this is what people should look for, the elections in seven months time. I think a lot of people are preparing for that. I have no doubt that Dr. Chalabi also has his eyes on the election.

BLITZER: Rend Al-Rahim, good luck to you, good luck to all the Iraqi people. Thanks for joining us.

AL-RAHIM: Thank you.

(END VIDEOTAPE)

BLITZER: Deemed too dangerous for mere criminal charges. The federal government details chilling case against the so-called dirty bomb suspect Jose Padilla. I'll speak live with one of his attorneys.

Politics and the countdown to handover. Democratic Governor Bill Richardson joins me live to discuss today's developments in Iraq and the war on terror.

Terrorists and nuclear weapons. Senator John Kerry says he has a new plan to keep them separate.

(COMMERCIAL BREAK)

BLITZER: Democratic presidential candidate John Kerry today proposed a new initiative to keep nuclear weapons out of the hands of terrorists. The Massachusetts senator used an appearance in West Palm Beach, Florida to deliver the second of three scheduled speeches on national security.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Preventing nuclear terrorism is our most urgent priority to provide for America's long-term security. And that is why I will appoint a national coordinator for nuclear terrorism and counter-proliferation.

(END VIDEO CLIP)

BLITZER: Kerry called for direct U.S. talks with North Korea about its nuclear program and he called a prospect of Iran getting nuclear arms, and I'm quoting now, "unacceptable."

A former U.S. congressman, ambassador to the United Nations and energy secretary, Bill Richardson is now the governor of New Mexico and a key adviser in the Kerry campaign.

Governor Richardson joins us now live from Santa Fe. Governor, thanks very much for joining us. Direct negotiations with North Korea, Republicans, at least a lot of Republicans say, that would be rewarding the North Korean regime for going ahead and clandestinely building a bomb or two. What do you say?

GOV. BILL RICHARDSON (D), NEW MEXICO: Well, I disagree. I think eventually if there's going to be an agreement between the United States and North Korea that involves the U.S. guaranteeing no military operation and then North Korea in turn stopping its nuclear development, it's going to take bilateral talks. I believe, Wolf, you can continue the work done by the Bush administration in the six-party talks which are scheduled in late June that involve the Chinese, the South Koreans, the Japanese, Russia, the U.S. and North Korea. Try to make progress on that front but eventually recognize that it's going to take bilateral talks. I believe Senator Kerry has emphasized the importance of the bilateral talks within a six-party context.

BLITZER: Let me interrupt, Governor. You had this kind of deal in '93-'94 during the Clinton administration with North Korea but they lied and cheated and went ahead and developed a bomb anyway irrespective of that kind of deal. What makes you think they would act any differently now?

RICHARDSON: Well, the reality is that for several years, over six years, the North Koreans adhered to the treaty. They didn't reprocess any fuel. They didn't build any nuclear weapons. They did violate the agreement, no question about it. What I believe Senator Kerry is trying to say is in the future we need a new system of rigorous verification. He's talking about a appointing a nuclear terrorism czar that I think is critically important.

The fact that nuclear materials, plutonium in Russia and the Ukraine and North Korea, Iran, securing those materials is critically important, but underscored by the importance as Senator Kerry is saying of strong alliances in the post 9/11 world. Reducing our dependence on foreign oil. Modernizing our military. And also having credible, credible diplomacy, using our arsenal, our values, diplomacy, economic power, to deal with some of these issues.

BLITZER: Let's switch gears, Governor, talk about Jose Padilla, an American citizen being held as an enemy combatant. The justice department going out today with a detailed list saying what he has confessed to. Are you comfortable with the way the government is treating this United States citizen?

RICHARDSON: I'm OK with it. I don't have a problem detailing and putting a face on some of these individuals that are suspicious. What I do worry about, Wolf, is the lack of coordination between the justice department in releasing some of this information and the department of homeland security as occurred in the last weekend. What we need at the state level is rigorous discipline at the top, because the states are going to be the front lines of any attacks and besides the assistance that we're going to need for our police, for our firemen, against anthrax, we need the federal government to properly coordinate some of those color threats so we can secure our airports, highway, schools, our communities and that's what is more important. I don't have a problem with releasing these names, dealing with these suspected individuals the way we have. I just want better coordination.

BLITZER: All right, let's talk a little bit about Iraq right now. It seems to me that in the past several months the Bush administration, the president has moved closer to some of the ideas that John Kerry has had in terms of greater internationalization of the role in Iraq, more reliance on the United Nations, is there any significant difference as far as you can tell right now between the Bush position and the Kerry position on dealing with the immediate months ahead in Iraq?

RICHARDSON: In the last few days the Bush administration, I believe, has moved in the right direction. I see the new Iraqi transition government having a larger role. I wish we wouldn't meddle in trying to put the people that we want because what we want is legitimacy of these Iraqis in a new transition.

The big difference, Wolf, is what is the role of the U.S. military after June 30? What I would like to see the U.S. military do is secure the transportation route, bring stability to the area, but not act as a police force. Where I believe we differ is in the need for the United States to ask NATO, to ask Muslim troops, to join in the security force. To get the security council of the United Nations to internationalize the force. I would like to see the Bush administration move more in that direction. It is a welcome step to have an Iraqi governing council. I just wish we wouldn't meddle and try to put the people we want because what we want is a broadly based government that the Iraqis feel they are electing and appointing then the United States gradually starts phasing out.

BLITZER: Bill Richardson who's name has been widely mentioned as a possible vice-presidential running mate. I know you are not going to answer the question so I won't even ask if you are interested. We'll wait to see if John Kerry is interested in you, Governor. Thanks very much for joining us.

RICHARDSON: Thank you, Wolf.

BLITZER: Al Qaeda in America, new details on a plot to hit Americans where they live.

An attack in Saudi Arabia strikes fear into the world oil market. But have the terrorists made a mistake?

And controversy rekindled. A federal judge takes aim at a federal abortion law. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

A plot to blow up apartment buildings inside the United States, new disturbing details emerging about the life and the alleged plans of Jose Padilla.

First, though, a quick check of the latest headlines.

More heavy fighting in the Iraqi city of Kufa between U.S. forces and the militia of the radical cleric Muqtada al-Sadr. An American military official says militia members are firing from inside a mosque. It's the fourth straight day of fighting in Kufa despite an offer of a truce by Sadr.

A federal judge says a ban on a controversial abortion procedure is unconstitutional. She ruled the so-called partial birth abortion ban act infringes on a woman's rights. The ruling is one of three lawsuits filed after President Bush signed the ban into law last year.

Big changes in store for the parent company of MTV, CBS, and many other companies. Viacom's No. 2 man, Mel Karmazin, is stepping down as president and CEO. His occasion rival, CEO Sumner Redstone, says he will leave in three years.

Best selling biographer and Kennedy confidante William Manchester has died. His friendship with John F. Kennedy spanned almost 20 years and resulted in three books about the late president. Manchester also chronicled figures like Winston Churchill and Douglas MacArthur. William Manchester was 82 years old.

As we reported, the government today unveiled new terror allegations against Jose Padilla, the United States citizen who was detained two years ago for allegedly planning a dirty bomb attack in the United States. The new allegations were discussed today by the Deputy Attorney General James Comey.

Here's some of what he had to say.

(BEGIN VIDEO CLIP)

JAMES COMEY, DEPUTY ATTORNEY GENERAL: He has admitted that there he completed an application to receive training at an al Qaeda camp sponsored by the man he met in Yemen who helped him fill out the paperwork.

According to Padilla, his training included weapons instruction on AK-47, on G-3, M-16, uzi and other machine guns. Padilla completed this basic terrorist training successfully and then spent three months in the fall of 2000 with other new al Qaeda recruits guarding a Taliban outpost north of Kabul.

Padilla admits that he first met al Qaeda's military commander, Abu Hafs al-Masri, better known as Mohammed Atef. His mentor, Atef, asked him a question. He asked his American disciple if he was willing to undertake a mission to blow up apartment buildings in the United States using natural gas. Padilla told him he would do it. He spent much of September of 2001, including after the attacks of September 11, staying with Mohammed Atef at Atef's safe house near Kandahar. That was the same safe house where Atef was killed by American forces after it was bombed in November of 2001 in a military raid.

Padilla says it was at the place in Faisalabad that he and a new accomplice, a new partner, approached Abu Zubaydah with an operation in which they proposed to travel to the United States to detonate a nuclear improvised bomb that they had learned to make from research on the Internet. Khalid Shaikh Mohammed was not himself sure which operation Padilla intended to taken out.

By that, I mean, in Khalid Shaikh Mohammed's mind, it was still possible that Padilla was going to pursue the dirty bomb plot. Padilla says that Mohammed wanted him to hit apartment buildings in New York, although they also talked about Florida and Washington, D.C.

(END VIDEO CLIP)

BLITZER: Deputy Attorney General James Comey speaking earlier today. U.S. authorities are also searching for the man who would allegedly have been Padilla's partner in the apartment bombing plot. Adnan al-Shukrijumah was one of seven people listed last week when the attorney general, John Ashcroft, released the name of alleged terrorists being sought by the U.S. government.

For more on these new developments, we're joined from New York by Jose Padilla's attorney, Andrew Patel.

Mr. Patel, thanks very much for joining us.

It sounds like a damning indictment against your client, supposedly someone who has confessed to all of these allegations. What do you say?

ANDREW PATEL, CO-COUNSEL FOR JOSE PADILLA: We wish it was an indictment. An indictment would give us an opportunity to respond to these allegations in the court of law.

Right now, Mr. Comey has had the opportunity to give an opening statement, but we have no forum to respond. Additionally, anything that we have heard from our client, anything that he's told us, is classified. So we're not even allowed to discuss it publicly.

BLITZER: So if I asked you, can you confirm what Mr. Comey is saying, what would you say?

PATEL: I'm not allowed to answer the question.

BLITZER: Otherwise, you could be penalized by the court. Is that what you're saying?

PATEL: Well, actually, if I was revealing classified information, that is a crime.

BLITZER: Why do you think the federal government has now gone public with the specifics of this alleged plot?

PATEL: We have been wondering for two years why the federal government has been seeking to try Mr. Padilla in the court of public opinion, rather than a court of law, which is where we would like this proceeding to happen.

BLITZER: But, as an enemy combatant, what, if any, legal rights does he have right now? I know he has met with you and Donna Newman, your co-counsel in this matter. So he must have some legal rights.

PATEL: The government has said he had no right to meet with counsel, that they have really done that as a matter of grace.

The larger question of what you're asking is, what rights does an enemy combatant have? It depends upon what you mean by an enemy combatant. There are two American citizens being held as -- quote -- "enemy combatants" and the government in their filings in the Supreme Court gave different definitions of that term in each of the cases. That is, they used one definition in the Hamdi and a different definition in the Padilla's case.

BLITZER: The difference being that Yaser Hamdi was caught on the so-called battlefield in Afghanistan, whereas Jose Padilla was picked up at O'Hare Airport in Chicago.

PATEL: Those are the factual differences of how they came to be incarcerated. But they used different definitions of what an enemy combatant is. One would assume that, if this status existed, and it's not defined in any treaty or any statute, that there would be one definition, not a definition to fit the moment.

BLITZER: You have had a chance to meet with Jose Padilla. How is he doing? What can you tell us about his status right now?

PATEL: Well, he's incarcerated in a Naval brig in South Carolina. I am not a psychologist. I'm a trial lawyer.

So he's been essentially in solitary confinement for two years. The studies we have read said that that has an effect on someone. All things considered, he certainly seems to be doing well as anybody could expect him to be doing after that period of isolation.

BLITZER: Andrew Patel, one of Jose Padilla's attorneys, thanks very much, Mr. Patel, for joining us.

PATEL: Thank you.

BLITZER: And joining us now from the White House with more on this case, the war on terrorism, Iraq, Jim Wilkinson, the deputy national security adviser for communication.

Mr. Wilkinson, welcome back to our program.

How comfortable are you right now with the timing of these allegations against Jose Padilla? Critics of the administration suggesting you are trying to influence the U.S. Supreme Court, which has some major considerations, major decisions before it.

JIM WILKINSON, DEPUTY NATIONAL SECURITY ADVISER, WHITE HOUSE COMMUNICATIONS: Look, this is about a man and others who wanted to enter the country and try to kill Americans, innocent Americans. And so we're very comfortable with the timing of this.

It's important, as the president did after September 11, when he energized this homeland security apparatus of this nation to have better coordination than ever before between state, local and federal officials, it's important to get this information out. And let's not forget, in all these critics that are making the criticisms today, I think the Justice Department did a good job today.

But let's not forget this is a man and a group who wanted to come to United States to kill innocent Americans.

BLITZER: And the fact that he's an American citizen, you don't think he should have any constitutional rights, since he's deemed a so-called enemy combatant?

WILKINSON: He's being held as an enemy combatant.

But, Wolf, again, this is a man who wanted to come here and kill innocent people in apartment buildings. And so, I think the American people feel pretty good about their president, who is leaving no stone unturned to find these al Qaeda people who would try to bring threats to our streets.

BLITZER: But what about the notion that people are innocent until proven guilty? He has not been proven guilty of anything.

WILKINSON: What about the notion that when Americans know that there are al Qaeda and others trying to enter our country to attack us with dirty bombs and use natural gas to blow up apartments that we should treat them as enemy combatants, because that's what they are?

Enemy combatants take the fight to innocent civilians. They don't wear uniforms. They hide among civilians, like the cowards they are. And this is a president and an administration that believes we should leave no stone unturned to go out and find these people who would try to enter our country and kill our innocent citizens.

BLITZER: Let's make a quick turn to Iraq and this new interim government that was announced today. Do you have a good understanding in your mind, Mr. Wilkinson, how this new government will determine whether or not U.S. military forces should enter into certain areas, Fallujah or Karbala or other sensitive areas? Who will make those decisions?

WILKINSON: Well, I wouldn't listen to what I have to say on this topic. I would prefer you listen to the Iraqis who spoke today who were very supportive of the American people and the coalition for sending our forces there. They have been very supportive of our troops.

And they said they support a long-term involvement of our troops in Iraq to help them secure the area. To your specific question about our forces and their activities on the ground, two points. First, our troops have crystal clear rules of engagement today. They will have those rules of engagement in place and the freedom of movement they need to do their job after June 30.

But, second, these sort of agreements are not unprecedented. We did this in Afghanistan, where we have a sovereign government, yet our troops have the freedom of movement to go out and try to attack the terrorist elements. As the president said today, you will see more violence soon, because there are those, like Zarqawi in Iraq, who want to hinder Iraq.

And this is a president who wants his forces on the in ground in Iraq to go after these terrorist elements, these foreign elements and remove the threat for the Iraqi people. And so we do this all the time in other countries like Bosnia and Afghanistan. And it's not unprecedented. These things work very well.

BLITZER: Well, a quick question on Ahmad Chalabi. Some conservatives are angry at the way the U.S. government now has apparently treated the Iraqi Governing Council member. I know that James Woolsey, Richard Perle, others have met with your boss, Dr. Condoleezza Rice, and complained about what some are suggesting as stabbing him in the back, if you will. What is your understanding right now, his standing as far as the Bush administration is concerned?

WILKINSON: Well, as Dr. Rice said today in her press briefing, we have had a relationship with Mr. Chalabi. It's been a strained relationship as of late.

But we are looking ahead right now to a new government, a government that has six women in it, a government that has representatives from all across Iraq, a government that is committed to a future and free elections. And so this is not a time to look backwards. And one thing, as Condi Rice said today, politics is breaking out. The Iraqi people do have a voice and a choice in this issue. And they have chosen -- with Brahimi and others, they have chosen this new interim government that will lead them to free elections very soon.

BLITZER: Jim Wilkinson of the National Security Council, joining us from the White House, thanks very much.

WILKINSON: Thank you, Wolf.

BLITZER: Fear in Saudi Arabia and the price of oil, the impact on the price of oil in the aftermath of the deadly weekend terrorist attack on the oil city of Khobar.

A notorious California murder case. After numerous delays, Scott Peterson goes on trial for the murder of his wife and unborn baby. We'll go live to the courthouse.

A political giant moving out of the international spotlight. We'll tell you why Nelson Mandela is slowing down. (COMMERCIAL BREAK)

BLITZER: In Saudi Arabia, security forces today killed two militants and wounded two others in the hunt for terrorists who attacked the oil city of Khobar on Saturday. Saudi officials say they are getting closer to arresting the three terrorists who killed 22 people. A group linked to al Qaeda has claimed responsibility.

For the impact the attack on oil prices, let's bring in our Tom Foreman.

Tom, this is significant.

TOM FOREMAN, CNN CORRESPONDENT: Wolf, this is really quite astonishing when you think of it.

It's a measure of how profoundly the world fears terrorism right now, that what a few terrorists did in one country rattled a significant part of the global economy and it is still rattling.

(BEGIN VIDEOTAPE)

FOREMAN (voice-over): The attack in Saudi Arabia sent a shockwave through world oil markets, and when U.S. traders hit the floor after the long weekend, the impact was immediate. Oil prices jumped almost $2.5 per barrel since last Friday, a new high.

At Harvard University, professor of international relations Joseph Nye calls it the risk factor kicking in.

JOSEPH NYE, HARVARD UNIVERSITY: Indeed, some people feel about a quarter of the price of barrel of oil is not determined by supply and demand, but by fears for the future.

FOREMAN: Fear is clearly the driving force behind the price jump. The Saudi attack did not keep a single drop of oil off the market. Still, in a statement purportedly from al Qaeda, the group claims it will continue to hit American companies that are specialized in oil and steal the wealth of Muslims. Operations in Saudi Arabia are prime targets because the Saudis control a quarter of the world oil reserves. No wonder Secretary of State Colin Powell is encouraging Saudi efforts to fight terrorism.

COLIN POWELL, SECRETARY OF STATE: They know that this kind of terrorist activity cannot be in any way found to be something that is tolerable. And I expect them to use all the resources at their disposal to go after them, just as every other civilized nation should.

FOREMAN: It is possible that consequence of attacking the oil trade could be worse for the terrorists than it is for the world.

At least at the Chicago trading firm of Alaron, analyst Phil Flynn thinks so.

PHIL FLYNN, COMMODITY ANALYST: I think al Qaeda has made a mistake, a tactical mistake, by attacking the Saudi oil industry, because in effect, an attack on Saudi Arabia is an attack on the entire OPEC cartel.

FOREMAN: If OPEC sees it that way, al Qaeda could find the largest and wealthiest Islamic nations joining much more actively in the battle to defeat the terrorists.

(END VIDEOTAPE)

FOREMAN: There is an irony in all of this. The reason that many of these countries are wealthy is because oil has been sold all over the world. Now what al Qaeda is doing is in fact maybe going to cost OPEC billions of dollars. OPEC is meeting later this week. You can bet that that's going to be on the table.

BLITZER: Tom Foreman, good explanation. Thanks very much for that report.

She disappeared on Christmas Eve 2002. Now Laci Peterson's husband stands trial for her murder. We'll go live to the courthouse.

First, though, some other news making the headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Mobs battled with police and paramilitary forces in Karachi, Pakistan, and set fire to buildings and property. The unrest follows yesterday's deadly bombing attack on a Shiite mosque which increased tensions between Sunni and Shiite Muslims.

Handover in Haiti. U.N. forces formally assume peacekeeping duties in Haiti, replacing U.S.-led forces that have been patrolling the country since the fall of President Jean-Bertrand Aristide. So far, the handover is largely symbolic. Only a few dozen U.N. forces have arrived.

Taking it easy. Former South African President Nelson Mandela is slowing down. Now 85, the Nobel Prize laureate says he will cut back his public appearances so he can spend more time with his friends and family while his health is still relatively good.

No way in Norway. Norway today became the second country to impose a nationwide ban on smoking in public places. Like their counterparts in Ireland, Norwegian bar patrons will have to smoke out on the street.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: We want to go right away to CNN's David Mattingly, who is reporting on the first day of the Laci Peterson much trial in Redwood City, California -- David. DAVID MATTINGLY, CNN CORRESPONDENT: Wolf, day one of the Scott Peterson trial proving to be a one-sided affair, as the defense is taking -- the prosecution, excuse me, is taking all day to lay out its opening remarks.

(BEGIN VIDEOTAPE)

MATTINGLY (voice-over): Scott Peterson did not look as prosecutor Rick Distaso showed the jury pictures of him with girlfriend Amber Frey. Distaso detailed how wife, Laci, attended a Christmas party alone, while Scott and Amber attended a party together in formal attire. When confronted with these pictures, Rick Distaso said, Peterson told investigators, "Is that supposed to be me?"

Peterson's family emerged from court unshaken, waiting for the defense to take its turn.

UNIDENTIFIED MALE: Same thing. Nothing new. No evidence.

UNIDENTIFIED FEMALE: Except that he referred to it as a game.

MATTINGLY: But Peterson's affair is only part of a litany of deception and inconsistencies, according to Distaso, who said for the first time that Peterson claimed he left his home Christmas Eve morning at 9:30. But cell phone tower records show he was still at home.

Peterson told two people that night he went golfing, when he later told investigators he went fishing. And Distaso also said that the cover of Peterson's boat was covered with gasoline capable of dissolving any evidence of DNA. In one moment of emotion, Laci Peterson's father, Dennis, was brought to tears when a picture of a smiling pregnant Laci was shown to the court.

(END VIDEOTAPE)

MATTINGLY: And the pattern of deception continuing this afternoon. The prosecutors just played a recording of a conversation between Scott Peterson and Amber Frey recorded on New Year's Eve after Laci was reported missing. In this conversation, Scott Peterson told Amber he was in Europe when in fact he was in California -- back to you.

BLITZER: David Mattingly reporting on day one of this trial -- thanks, David, very much.

The results of our "Web Question of the Day," that's coming up. Plus, a high-speed ferry makes a splash in the Great Lakes.

(COMMERCIAL BREAK)

BLITZER: Take a look. Here's how you're weighing in on our "Web Question of the Day." As you look at these numbers, remember, this is not a scientific poll.

Now our picture of the day, the first high-speed ferry on the Great Lakes. The Lake Express made its maiden voyage today, crossing Lake Michigan in about 2.5 hours. It can carry 46 cars. Motorists traveling between Milwaukee and Western Michigan can cut their trip time in half. Very good.

A reminder, we're on weekdays 5:00 Eastern, also noon Eastern. Tomorrow, 5:00 p.m., among my guests, Tim Russert of NBC's "Meet the Press" and former Secretary of State Madeleine Albright.

I'm Wolf Blitzer in Washington. "LOU DOBBS TONIGHT" starts right now.

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 June 1, 2004 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)
WOLF BLITZER, CNN ANCHOR (voice-over): Terror plot revealed. New information on al Qaeda and its alleged American recruit.

JAMES COMEY, DEPUTY ATTORNEY GENERAL: Khalid Shaikh Mohammed wanted them to blow up 20 apartment buildings simultaneously.

BLITZER: Target oil. And now a sharp rise in prices. Is the what the terrorists wanted?

Caretakers and car bombs.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The new interim government brings us one step closer to realizing the dream of millions Iraqis.

BLITZER: But for many Iraqis the nightmare continues.

Trial under way. They have no weapon and no clear cause of death. Can prosecutors make their murder case against Scott Peterson?

ANNOUNCER: This is WOLF BLITZER REPORTS for Tuesday, June 1, 2004.

(END VIDEOTAPE)

BLITZER: There are dramatic new accusations against Jose Padilla, the former Chicago gang member detained two years ago on charges he was planning an attack with a so-called dirty bomb. The Justice Department now says the dirty bomb plot was just part of his plan. CNN's Brian Todd and CNN Justice correspondent Kelli Arena are here to tell us what they've learned. Let's start with Kelli -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Wolf, the deputy attorney general says that the government is releasing the new information to help people understand why it's doing what it is doing in the war on terror and to help people understand the nature of the threat we face.

(BEGIN VIDEOTAPE)

ARENA (voice-over): He was dubbed the dirty bomber. The government said he planned to set off a radiological device in the United States. Now newly declassified documents alleged Jose Padilla also planned to blow up apartment buildings using natural gas.

COMEY: ... once in the country they locate high-rise apartment buildings that had natural gas supplied to all floors, that they rent two apartments in each building, seal those apartments, turn on the gas, and set timers to detonate and destroy the building simultaneously at a later time.

ARENA: The new documents outline his alleged relationship with al Qaeda leaders including now deceased al Qaeda military Mohammed Atef and September 11 mastermind Khalid Shaikh Mohammed.

The government also sheds new light on his terror training with an emphasis on explosives.

COMEY: On May the 8th, 2002, a soldier of our enemy, a trained, funded and equipped terrorist, stepped off that plane at Chicago's O'Hare. A highly-trained al Qaeda soldier who had accepted an assignment to kill hundreds of innocent men, women and children.

ARENA: The Justice Department cites interrogations with Padilla, but his lawyer says it's one sided government expose of the governments' version of events.

DONNA NEWMAN, PADILLA'S ATTORNEY: The government is simply saying, look, you're going to have to trust us. This is what he said.

I don't know if that's what he said. But more important, there was nothing in that report that suggested any imminent danger.

ARENA: The deputy attorney general denies the timing of the release has anything to do with Padilla's pending Supreme Court case.

(END VIDEOTAPE)

ARENA: The high court is expected to rule whether the government has the authority to hold U.S. citizens indefinitely as enemy combatants by the end of this month -- Wolf.

BLITZER: Are they explaining to you, Kelli, why now? Why they have come public with all these accusations right now?

ARENA: What they said was that this was a request by Congress to -- for justification. That they had to go to the Department of Defense. The Department of Defense did not classify these papers until just eventually. Justice got it, they gave it to Congress and then they had to wait for Congress to release the paperwork and then DOJ could comment.

And that's why they explained that they didn't do it until today. They said actually they would have liked to have done it much sooner.

BLITZER: All right, Kelli Arena with that. Thanks very much, Kelli.

Brian Todd has been looking to one fascinating aspect of how this story has unfolded, how Jose Padilla allegedly joined al Qaeda -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, there was a very short part of that Justice Department news conference where the deputy attorney general offered some chilling insight into the structure of al Qaeda.

(BEGIN VIDEOTAPE)

TODD (voice-over): In a stunning narrative of Jose Padilla's four-year odyssey as an alleged terrorist one account stands out. According to the deputy attorney general, the incident occurred in July of 2000, after Padilla allegedly made his way from Yemen to Afghanistan.

COMEY: He has admitted that there he completed an application to receive training at an al Qaeda camp, sponsored by the man he met in Yemen, who helped him fill out the paperwork.

TODD: Paperwork, an application to join an al Qaeda training camp. The Justice Department says the FBI found the application in a binder that contained 100 other similar documents.

COMEY: Typewritten, each with the title at the top, "Mujahideen identification form/new applicant form."

TODD: To the casual observer this is almost shocking in its officiality. Does al Qaeda really have formal written applications? Terrorism experts we spoke to say don't think of this like an IBM application.

KEN ROBINSON, CNN MILITARY INTELLIGENCE ANALYST: There were biops that were sworn, there were oaths of allegiance which were written down and sworn to Osama bin Laden and to others and for the affirmation of desire to do jihad.

TODD: Much of this documentation was recovered after the fall of Kandahar and Kabul early on the war on terror. Often, experts say, a prospective al Qaeda member would simply write down his desires, his philosophies on jihad so al Qaeda leaders could gauge his level of commitment.

They also might include certain skills they had. But experts say that type of structure and screening was more common in al Qaeda before September 11.

PETER BERGEN, CNN TERRORISM ANALYST: Al Qaeda the organization took a big hit after the fall of the Taliban. So it's not as organized as it was before.

TODD: As for an actual form, experts say that's also not inconsistent with a terrorist organization known for meticulous record keeping.

ROBINSON: They have to deal with large numbers of people and large amount of money. And the devil is in the details.

TODD: For his part, Padilla claims he never made a former pledge of loyalty to Osama bin Laden, and therefore was not a member of al Qaeda.

(END VIDEOTAPE)

TODD: Still, U.S. officials say that application for the al Qaeda training camp bore one of Padilla's aliases and showed that he was an American citizen who spoke fluent English, Spanish and Arabic -- Wolf.

BLITZER: Brian Todd with that part of the story. Thanks, Brian, very much.

And to our viewers we'll have much more on this case involving Jose Jose Padilla. Later this hour, I'll speak live with his attorney, Andrew Patel.

Iraq got a new government today, caretakers who will run the country through the transition periods in the months ahead. The move gave many Iraqis cause for hope, but two more car bombings left at least 14 people dead and dozens more wounded. Bloody reminders of the difficulties ahead. CNN's Harris Whitbeck reports from Baghdad.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (through translator): I present to you all the president of the Republic of Iraq.

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): Words make Iraqis have been waiting to hear for decades. A new Iraqi government different from Saddam Hussein and more recently planning to be different from the U.S.-led occupation authorities.

U.N. Special Envoy Lakhdar Brahimi spent weeks helping to cobble together the interim government, a presidential council of four plus 31 cabinet ministers.

LAKHDAR BRAHIMI, U.N. SPECIAL ENVOY: I think that the people of Iraq will be praying all over the country for the success of their mission which aims at starting the rebuilding of the new Iraq.

WHITBECK: Interim President Sheikh Ghazi al-Yawar was firm in expressing what he would work towards.

SHEIKH GHAZI AL-YAWAR, IRAQI INTERIM PRESIDENT-DESIGNATE: We, the Iraqis, also look forward to being granted full sovereignty.

WHITBECK: And that promise of sovereignty seemed to spark hope among many Iraqis we talked to. Hope that had not been heard in a long time.

UNIDENTIFIED MALE (through translator): Ghazi's a true Iraqi, and hopefully he will change this country into a better and safer place for the Iraqis.

WHITBECK: Safety and security, the country's biggest concern. The lack of it was driven home again on the streets of Baghdad hours before the presentation ceremony. A car bomb near the Green Zone and near the offices of a Kurdish political party left three dead and 20 injured.

Earlier Tuesday, near Baji, north of Baghdad, a car bomb outside a military base killed 11 Iraqis and wounded 26.

(on camera): Security is just one of many challenges the interim government will face once it takes full political control on June 30. It's immediate challenge, working on a smooth transition with the U.S.-led coalition. And assuring the Iraqi people that a transition to full sovereignty will be a reality.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: And here's your chance to weigh in on this important story. Our "Web Question of the Day" is this: do you think there can be a smooth transition of power in Iraq? You can vote right now. Go to cnn.com/wolf. We'll have the results later in this broadcast.

Is Iraq's new government up to the challenge? I'll speak with the Iraqi representative to the United States, Rend al-Rahim.

Plus this.

(BEGIN VIDEO CLIP)

BUSH: This is a very hopeful day for the Iraqi people and a hopeful day for the American people.

(END VIDEO CLIP)

BLITZER: Voicing optimism. Why the president says he's confident the new government will get the job done.

Saudi oil attacks. New threats from al Qaeda against American companies. But this time the terror groups attacks could backfire.

And the case against Scott Peterson, the prosecution details inconsistencies in his story. We're live from the courthouse.

(COMMERCIAL BREAK)

BLTIZER: President Bush today was quick to offer his support to Iraq's new caretaker government but his administration insists it is not pulling the strings in a marionette show. Let's go live to our White House correspondent, Suzanne Malveax.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Wolf, after that rose garden ceremony President Bush called the new Iraqi interim president as well as the prime minister. He said he wanted to work with the new leadership that he was very hopeful and excited about this, but as you know, Wolf, these leaders are untested.

(BEGIN VIDEOTAPE)

MALVEAUX: After intense negotiations between the U.S., U.N. and Iraqi officials President Bush said Iraq's new interim government was one he could work with.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The naming of the new interim government brings us one step closer to realizing the dream of millions of Iraqis, a fully sovereign nation with a representative government that protects their rights and serves their needs.

MALVEAUX: The government's makeup mostly of Iraqi exiles with close ties to Washington has raised questions whether Iraqis will consider this new authority to be legitimate. The Bush administration denied handpicking Iraq's new leadership.

BUSH: I had no role in picking, zero.

CONDOLEEZA RICE, NATIONAL SECURITY ADVISER: These are not America's puppets. These are independent-minded Iraqis who are determined to take their country to security and democracy.

MALVEAUX: But there is still a question as to what that will mean for U.S. troops. The president acknowledged that the situation on the ground ought to get worse as the deadline to full Iraqi sovereignty draws near.

BUSH: I believe there will be more violence because there's still violent people who want to stop progress.

MALVEAUX: Earlier in the day Mr. Bush spoke with U.N. Secretary- General Kofi Annan and offered public praise to the international body. Mr. Bush hopes the formation of Iraq's new interim government will help ease the way for a new U.N. security council resolution that will endorse Iraqis sovereignty and establish a multinational force to help provide security, but neither the president nor his advisers said they expected a significant military assistance.

RICE: There could be other states that might be willing to send a few troops here, a few troops there. But no one really believes that we are about to have a massive infusion of foreign forces into Iraq.

(END VIDEOTAPE)

MALVEAUX: So, Wolf, what they are talking about is trying to train the Iraqi police and the military essentially to handle their own security matters. One of the things in this U.N. security council resolution, they are debating on the one side, you have the U.S. as well as Britain talking about the extent of the multilateral force, what they will be able to do. You are also talking about the timetable on the other side, of course, you have a resolution that has been endorsed by China as well as being backed by Russia, the Germans and the French. They are looking at something that essentially may be a little bit beefier in bolstering the authority of the Iraqi interim government.

BLITZER: Suzanne Malveaux at the White House.

Just a short while ago, I discussed the new Iraqi government with Rend Al-Rahim, the Iraqi representative to the United States.

(BEGIN VIDEOTAPE)

BLITZER: Ambassador, thanks once again for joining us. What do you make of this new interim government from the U.S. perspective.

REND AL-RAHIM, IRAQI REP. TO THE UNITED STATES: First of all, I think it's very exciting that we have a new Iraqi government. The suspense over the long period of negotiations and exploration has really been a little trying, I think, for the nerves of Iraqis. So this is a very, very good day.

BLITZER: Are these leaders who have now been named, do they need to be somewhat distanced from the United States in order to have credibility with Iraqis?

AL-RAHIM: I think they need to be seen to have sovereignty and control over the government and affairs of Iraq. That is really the important thing. Even in situations where they decide that their best interest lies with the U.S. and so on. It has to be a sovereign Iraqi decision. This is the important issue. Not whether we are with the U.S. or not. I think most Iraqis do understand that our interest lies with having the U.S. as our friend, as our partner, that the path of Iraq and U.S. will run together. But it has to be an independent Iraqi decision.

BLITZER: The prime minister, Iyad Allawi, a Shiite Muslim, someone that had been very close to the CIA over the years, how does he get over this allegation he's a puppet of the U.S.?

AL-RAHIM: This is a nonsense that he is a puppet. After all, he was supported by the U.S. or worked with the U.S. because he was trying to unseat the regime of Saddam Hussein. In other words, because he was a patriot and cared about the Iraqi people. And in the end, people judge -- will judge by actions and decisions and not by secondary affairs.

BLITZER: The president, a Sunni Muslim, Ghaza al-Yawar, he's not necessarily simply a ceremonial president, is he?

AL-RAHIM: I think Mr. al-Yawar is a very outspoken person. He has a very forceful personality and he's very widely respected in Iraq.

BLITZER: Does he reassure the Sunni minority that there will be a place at the table for them?

AL-RAHIM: Indeed he should because he is widely respected especially within the Sunni community but not only there. He has proven himself, by the way, an effective member of the governing council during the last year.

BLITZER: There's Kurdish representation, too, one of the deputy presidents is a Kurd, the foreign minister is a Kurd.

AL-RAHIM: The deputy prime minister is also a Kurd. BLITZER: So this is a delicate balancing act. Do you believe it will have credibility, though, with rank and file Iraqis.

AL-RAHIM: Wolf, I think this is an extraordinary representative government, cabinet. Even more so than the governing council was. I think the governing council was pretty representative but this really brings -- ties the entire country together and gives the important elements of the country, political life, and social life, a stake in the political process. And I think this is important.

BLITZER: What, if anything, should we read into the fact that Ahmed Chalabi's name is not among those 33 ministers.

AL-RAHIM: I don't think we should count Dr. Chalabi out. He is an important personality on the Iraqi scene. He's a very resilient person. And eventually we're going to have elections in January. I think this is what people should look for, the elections in seven months time. I think a lot of people are preparing for that. I have no doubt that Dr. Chalabi also has his eyes on the election.

BLITZER: Rend Al-Rahim, good luck to you, good luck to all the Iraqi people. Thanks for joining us.

AL-RAHIM: Thank you.

(END VIDEOTAPE)

BLITZER: Deemed too dangerous for mere criminal charges. The federal government details chilling case against the so-called dirty bomb suspect Jose Padilla. I'll speak live with one of his attorneys.

Politics and the countdown to handover. Democratic Governor Bill Richardson joins me live to discuss today's developments in Iraq and the war on terror.

Terrorists and nuclear weapons. Senator John Kerry says he has a new plan to keep them separate.

(COMMERCIAL BREAK)

BLITZER: Democratic presidential candidate John Kerry today proposed a new initiative to keep nuclear weapons out of the hands of terrorists. The Massachusetts senator used an appearance in West Palm Beach, Florida to deliver the second of three scheduled speeches on national security.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Preventing nuclear terrorism is our most urgent priority to provide for America's long-term security. And that is why I will appoint a national coordinator for nuclear terrorism and counter-proliferation.

(END VIDEO CLIP)

BLITZER: Kerry called for direct U.S. talks with North Korea about its nuclear program and he called a prospect of Iran getting nuclear arms, and I'm quoting now, "unacceptable."

A former U.S. congressman, ambassador to the United Nations and energy secretary, Bill Richardson is now the governor of New Mexico and a key adviser in the Kerry campaign.

Governor Richardson joins us now live from Santa Fe. Governor, thanks very much for joining us. Direct negotiations with North Korea, Republicans, at least a lot of Republicans say, that would be rewarding the North Korean regime for going ahead and clandestinely building a bomb or two. What do you say?

GOV. BILL RICHARDSON (D), NEW MEXICO: Well, I disagree. I think eventually if there's going to be an agreement between the United States and North Korea that involves the U.S. guaranteeing no military operation and then North Korea in turn stopping its nuclear development, it's going to take bilateral talks. I believe, Wolf, you can continue the work done by the Bush administration in the six-party talks which are scheduled in late June that involve the Chinese, the South Koreans, the Japanese, Russia, the U.S. and North Korea. Try to make progress on that front but eventually recognize that it's going to take bilateral talks. I believe Senator Kerry has emphasized the importance of the bilateral talks within a six-party context.

BLITZER: Let me interrupt, Governor. You had this kind of deal in '93-'94 during the Clinton administration with North Korea but they lied and cheated and went ahead and developed a bomb anyway irrespective of that kind of deal. What makes you think they would act any differently now?

RICHARDSON: Well, the reality is that for several years, over six years, the North Koreans adhered to the treaty. They didn't reprocess any fuel. They didn't build any nuclear weapons. They did violate the agreement, no question about it. What I believe Senator Kerry is trying to say is in the future we need a new system of rigorous verification. He's talking about a appointing a nuclear terrorism czar that I think is critically important.

The fact that nuclear materials, plutonium in Russia and the Ukraine and North Korea, Iran, securing those materials is critically important, but underscored by the importance as Senator Kerry is saying of strong alliances in the post 9/11 world. Reducing our dependence on foreign oil. Modernizing our military. And also having credible, credible diplomacy, using our arsenal, our values, diplomacy, economic power, to deal with some of these issues.

BLITZER: Let's switch gears, Governor, talk about Jose Padilla, an American citizen being held as an enemy combatant. The justice department going out today with a detailed list saying what he has confessed to. Are you comfortable with the way the government is treating this United States citizen?

RICHARDSON: I'm OK with it. I don't have a problem detailing and putting a face on some of these individuals that are suspicious. What I do worry about, Wolf, is the lack of coordination between the justice department in releasing some of this information and the department of homeland security as occurred in the last weekend. What we need at the state level is rigorous discipline at the top, because the states are going to be the front lines of any attacks and besides the assistance that we're going to need for our police, for our firemen, against anthrax, we need the federal government to properly coordinate some of those color threats so we can secure our airports, highway, schools, our communities and that's what is more important. I don't have a problem with releasing these names, dealing with these suspected individuals the way we have. I just want better coordination.

BLITZER: All right, let's talk a little bit about Iraq right now. It seems to me that in the past several months the Bush administration, the president has moved closer to some of the ideas that John Kerry has had in terms of greater internationalization of the role in Iraq, more reliance on the United Nations, is there any significant difference as far as you can tell right now between the Bush position and the Kerry position on dealing with the immediate months ahead in Iraq?

RICHARDSON: In the last few days the Bush administration, I believe, has moved in the right direction. I see the new Iraqi transition government having a larger role. I wish we wouldn't meddle in trying to put the people that we want because what we want is legitimacy of these Iraqis in a new transition.

The big difference, Wolf, is what is the role of the U.S. military after June 30? What I would like to see the U.S. military do is secure the transportation route, bring stability to the area, but not act as a police force. Where I believe we differ is in the need for the United States to ask NATO, to ask Muslim troops, to join in the security force. To get the security council of the United Nations to internationalize the force. I would like to see the Bush administration move more in that direction. It is a welcome step to have an Iraqi governing council. I just wish we wouldn't meddle and try to put the people we want because what we want is a broadly based government that the Iraqis feel they are electing and appointing then the United States gradually starts phasing out.

BLITZER: Bill Richardson who's name has been widely mentioned as a possible vice-presidential running mate. I know you are not going to answer the question so I won't even ask if you are interested. We'll wait to see if John Kerry is interested in you, Governor. Thanks very much for joining us.

RICHARDSON: Thank you, Wolf.

BLITZER: Al Qaeda in America, new details on a plot to hit Americans where they live.

An attack in Saudi Arabia strikes fear into the world oil market. But have the terrorists made a mistake?

And controversy rekindled. A federal judge takes aim at a federal abortion law. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

A plot to blow up apartment buildings inside the United States, new disturbing details emerging about the life and the alleged plans of Jose Padilla.

First, though, a quick check of the latest headlines.

More heavy fighting in the Iraqi city of Kufa between U.S. forces and the militia of the radical cleric Muqtada al-Sadr. An American military official says militia members are firing from inside a mosque. It's the fourth straight day of fighting in Kufa despite an offer of a truce by Sadr.

A federal judge says a ban on a controversial abortion procedure is unconstitutional. She ruled the so-called partial birth abortion ban act infringes on a woman's rights. The ruling is one of three lawsuits filed after President Bush signed the ban into law last year.

Big changes in store for the parent company of MTV, CBS, and many other companies. Viacom's No. 2 man, Mel Karmazin, is stepping down as president and CEO. His occasion rival, CEO Sumner Redstone, says he will leave in three years.

Best selling biographer and Kennedy confidante William Manchester has died. His friendship with John F. Kennedy spanned almost 20 years and resulted in three books about the late president. Manchester also chronicled figures like Winston Churchill and Douglas MacArthur. William Manchester was 82 years old.

As we reported, the government today unveiled new terror allegations against Jose Padilla, the United States citizen who was detained two years ago for allegedly planning a dirty bomb attack in the United States. The new allegations were discussed today by the Deputy Attorney General James Comey.

Here's some of what he had to say.

(BEGIN VIDEO CLIP)

JAMES COMEY, DEPUTY ATTORNEY GENERAL: He has admitted that there he completed an application to receive training at an al Qaeda camp sponsored by the man he met in Yemen who helped him fill out the paperwork.

According to Padilla, his training included weapons instruction on AK-47, on G-3, M-16, uzi and other machine guns. Padilla completed this basic terrorist training successfully and then spent three months in the fall of 2000 with other new al Qaeda recruits guarding a Taliban outpost north of Kabul.

Padilla admits that he first met al Qaeda's military commander, Abu Hafs al-Masri, better known as Mohammed Atef. His mentor, Atef, asked him a question. He asked his American disciple if he was willing to undertake a mission to blow up apartment buildings in the United States using natural gas. Padilla told him he would do it. He spent much of September of 2001, including after the attacks of September 11, staying with Mohammed Atef at Atef's safe house near Kandahar. That was the same safe house where Atef was killed by American forces after it was bombed in November of 2001 in a military raid.

Padilla says it was at the place in Faisalabad that he and a new accomplice, a new partner, approached Abu Zubaydah with an operation in which they proposed to travel to the United States to detonate a nuclear improvised bomb that they had learned to make from research on the Internet. Khalid Shaikh Mohammed was not himself sure which operation Padilla intended to taken out.

By that, I mean, in Khalid Shaikh Mohammed's mind, it was still possible that Padilla was going to pursue the dirty bomb plot. Padilla says that Mohammed wanted him to hit apartment buildings in New York, although they also talked about Florida and Washington, D.C.

(END VIDEO CLIP)

BLITZER: Deputy Attorney General James Comey speaking earlier today. U.S. authorities are also searching for the man who would allegedly have been Padilla's partner in the apartment bombing plot. Adnan al-Shukrijumah was one of seven people listed last week when the attorney general, John Ashcroft, released the name of alleged terrorists being sought by the U.S. government.

For more on these new developments, we're joined from New York by Jose Padilla's attorney, Andrew Patel.

Mr. Patel, thanks very much for joining us.

It sounds like a damning indictment against your client, supposedly someone who has confessed to all of these allegations. What do you say?

ANDREW PATEL, CO-COUNSEL FOR JOSE PADILLA: We wish it was an indictment. An indictment would give us an opportunity to respond to these allegations in the court of law.

Right now, Mr. Comey has had the opportunity to give an opening statement, but we have no forum to respond. Additionally, anything that we have heard from our client, anything that he's told us, is classified. So we're not even allowed to discuss it publicly.

BLITZER: So if I asked you, can you confirm what Mr. Comey is saying, what would you say?

PATEL: I'm not allowed to answer the question.

BLITZER: Otherwise, you could be penalized by the court. Is that what you're saying?

PATEL: Well, actually, if I was revealing classified information, that is a crime.

BLITZER: Why do you think the federal government has now gone public with the specifics of this alleged plot?

PATEL: We have been wondering for two years why the federal government has been seeking to try Mr. Padilla in the court of public opinion, rather than a court of law, which is where we would like this proceeding to happen.

BLITZER: But, as an enemy combatant, what, if any, legal rights does he have right now? I know he has met with you and Donna Newman, your co-counsel in this matter. So he must have some legal rights.

PATEL: The government has said he had no right to meet with counsel, that they have really done that as a matter of grace.

The larger question of what you're asking is, what rights does an enemy combatant have? It depends upon what you mean by an enemy combatant. There are two American citizens being held as -- quote -- "enemy combatants" and the government in their filings in the Supreme Court gave different definitions of that term in each of the cases. That is, they used one definition in the Hamdi and a different definition in the Padilla's case.

BLITZER: The difference being that Yaser Hamdi was caught on the so-called battlefield in Afghanistan, whereas Jose Padilla was picked up at O'Hare Airport in Chicago.

PATEL: Those are the factual differences of how they came to be incarcerated. But they used different definitions of what an enemy combatant is. One would assume that, if this status existed, and it's not defined in any treaty or any statute, that there would be one definition, not a definition to fit the moment.

BLITZER: You have had a chance to meet with Jose Padilla. How is he doing? What can you tell us about his status right now?

PATEL: Well, he's incarcerated in a Naval brig in South Carolina. I am not a psychologist. I'm a trial lawyer.

So he's been essentially in solitary confinement for two years. The studies we have read said that that has an effect on someone. All things considered, he certainly seems to be doing well as anybody could expect him to be doing after that period of isolation.

BLITZER: Andrew Patel, one of Jose Padilla's attorneys, thanks very much, Mr. Patel, for joining us.

PATEL: Thank you.

BLITZER: And joining us now from the White House with more on this case, the war on terrorism, Iraq, Jim Wilkinson, the deputy national security adviser for communication.

Mr. Wilkinson, welcome back to our program.

How comfortable are you right now with the timing of these allegations against Jose Padilla? Critics of the administration suggesting you are trying to influence the U.S. Supreme Court, which has some major considerations, major decisions before it.

JIM WILKINSON, DEPUTY NATIONAL SECURITY ADVISER, WHITE HOUSE COMMUNICATIONS: Look, this is about a man and others who wanted to enter the country and try to kill Americans, innocent Americans. And so we're very comfortable with the timing of this.

It's important, as the president did after September 11, when he energized this homeland security apparatus of this nation to have better coordination than ever before between state, local and federal officials, it's important to get this information out. And let's not forget, in all these critics that are making the criticisms today, I think the Justice Department did a good job today.

But let's not forget this is a man and a group who wanted to come to United States to kill innocent Americans.

BLITZER: And the fact that he's an American citizen, you don't think he should have any constitutional rights, since he's deemed a so-called enemy combatant?

WILKINSON: He's being held as an enemy combatant.

But, Wolf, again, this is a man who wanted to come here and kill innocent people in apartment buildings. And so, I think the American people feel pretty good about their president, who is leaving no stone unturned to find these al Qaeda people who would try to bring threats to our streets.

BLITZER: But what about the notion that people are innocent until proven guilty? He has not been proven guilty of anything.

WILKINSON: What about the notion that when Americans know that there are al Qaeda and others trying to enter our country to attack us with dirty bombs and use natural gas to blow up apartments that we should treat them as enemy combatants, because that's what they are?

Enemy combatants take the fight to innocent civilians. They don't wear uniforms. They hide among civilians, like the cowards they are. And this is a president and an administration that believes we should leave no stone unturned to go out and find these people who would try to enter our country and kill our innocent citizens.

BLITZER: Let's make a quick turn to Iraq and this new interim government that was announced today. Do you have a good understanding in your mind, Mr. Wilkinson, how this new government will determine whether or not U.S. military forces should enter into certain areas, Fallujah or Karbala or other sensitive areas? Who will make those decisions?

WILKINSON: Well, I wouldn't listen to what I have to say on this topic. I would prefer you listen to the Iraqis who spoke today who were very supportive of the American people and the coalition for sending our forces there. They have been very supportive of our troops.

And they said they support a long-term involvement of our troops in Iraq to help them secure the area. To your specific question about our forces and their activities on the ground, two points. First, our troops have crystal clear rules of engagement today. They will have those rules of engagement in place and the freedom of movement they need to do their job after June 30.

But, second, these sort of agreements are not unprecedented. We did this in Afghanistan, where we have a sovereign government, yet our troops have the freedom of movement to go out and try to attack the terrorist elements. As the president said today, you will see more violence soon, because there are those, like Zarqawi in Iraq, who want to hinder Iraq.

And this is a president who wants his forces on the in ground in Iraq to go after these terrorist elements, these foreign elements and remove the threat for the Iraqi people. And so we do this all the time in other countries like Bosnia and Afghanistan. And it's not unprecedented. These things work very well.

BLITZER: Well, a quick question on Ahmad Chalabi. Some conservatives are angry at the way the U.S. government now has apparently treated the Iraqi Governing Council member. I know that James Woolsey, Richard Perle, others have met with your boss, Dr. Condoleezza Rice, and complained about what some are suggesting as stabbing him in the back, if you will. What is your understanding right now, his standing as far as the Bush administration is concerned?

WILKINSON: Well, as Dr. Rice said today in her press briefing, we have had a relationship with Mr. Chalabi. It's been a strained relationship as of late.

But we are looking ahead right now to a new government, a government that has six women in it, a government that has representatives from all across Iraq, a government that is committed to a future and free elections. And so this is not a time to look backwards. And one thing, as Condi Rice said today, politics is breaking out. The Iraqi people do have a voice and a choice in this issue. And they have chosen -- with Brahimi and others, they have chosen this new interim government that will lead them to free elections very soon.

BLITZER: Jim Wilkinson of the National Security Council, joining us from the White House, thanks very much.

WILKINSON: Thank you, Wolf.

BLITZER: Fear in Saudi Arabia and the price of oil, the impact on the price of oil in the aftermath of the deadly weekend terrorist attack on the oil city of Khobar.

A notorious California murder case. After numerous delays, Scott Peterson goes on trial for the murder of his wife and unborn baby. We'll go live to the courthouse.

A political giant moving out of the international spotlight. We'll tell you why Nelson Mandela is slowing down. (COMMERCIAL BREAK)

BLITZER: In Saudi Arabia, security forces today killed two militants and wounded two others in the hunt for terrorists who attacked the oil city of Khobar on Saturday. Saudi officials say they are getting closer to arresting the three terrorists who killed 22 people. A group linked to al Qaeda has claimed responsibility.

For the impact the attack on oil prices, let's bring in our Tom Foreman.

Tom, this is significant.

TOM FOREMAN, CNN CORRESPONDENT: Wolf, this is really quite astonishing when you think of it.

It's a measure of how profoundly the world fears terrorism right now, that what a few terrorists did in one country rattled a significant part of the global economy and it is still rattling.

(BEGIN VIDEOTAPE)

FOREMAN (voice-over): The attack in Saudi Arabia sent a shockwave through world oil markets, and when U.S. traders hit the floor after the long weekend, the impact was immediate. Oil prices jumped almost $2.5 per barrel since last Friday, a new high.

At Harvard University, professor of international relations Joseph Nye calls it the risk factor kicking in.

JOSEPH NYE, HARVARD UNIVERSITY: Indeed, some people feel about a quarter of the price of barrel of oil is not determined by supply and demand, but by fears for the future.

FOREMAN: Fear is clearly the driving force behind the price jump. The Saudi attack did not keep a single drop of oil off the market. Still, in a statement purportedly from al Qaeda, the group claims it will continue to hit American companies that are specialized in oil and steal the wealth of Muslims. Operations in Saudi Arabia are prime targets because the Saudis control a quarter of the world oil reserves. No wonder Secretary of State Colin Powell is encouraging Saudi efforts to fight terrorism.

COLIN POWELL, SECRETARY OF STATE: They know that this kind of terrorist activity cannot be in any way found to be something that is tolerable. And I expect them to use all the resources at their disposal to go after them, just as every other civilized nation should.

FOREMAN: It is possible that consequence of attacking the oil trade could be worse for the terrorists than it is for the world.

At least at the Chicago trading firm of Alaron, analyst Phil Flynn thinks so.

PHIL FLYNN, COMMODITY ANALYST: I think al Qaeda has made a mistake, a tactical mistake, by attacking the Saudi oil industry, because in effect, an attack on Saudi Arabia is an attack on the entire OPEC cartel.

FOREMAN: If OPEC sees it that way, al Qaeda could find the largest and wealthiest Islamic nations joining much more actively in the battle to defeat the terrorists.

(END VIDEOTAPE)

FOREMAN: There is an irony in all of this. The reason that many of these countries are wealthy is because oil has been sold all over the world. Now what al Qaeda is doing is in fact maybe going to cost OPEC billions of dollars. OPEC is meeting later this week. You can bet that that's going to be on the table.

BLITZER: Tom Foreman, good explanation. Thanks very much for that report.

She disappeared on Christmas Eve 2002. Now Laci Peterson's husband stands trial for her murder. We'll go live to the courthouse.

First, though, some other news making the headlines around the world.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Mobs battled with police and paramilitary forces in Karachi, Pakistan, and set fire to buildings and property. The unrest follows yesterday's deadly bombing attack on a Shiite mosque which increased tensions between Sunni and Shiite Muslims.

Handover in Haiti. U.N. forces formally assume peacekeeping duties in Haiti, replacing U.S.-led forces that have been patrolling the country since the fall of President Jean-Bertrand Aristide. So far, the handover is largely symbolic. Only a few dozen U.N. forces have arrived.

Taking it easy. Former South African President Nelson Mandela is slowing down. Now 85, the Nobel Prize laureate says he will cut back his public appearances so he can spend more time with his friends and family while his health is still relatively good.

No way in Norway. Norway today became the second country to impose a nationwide ban on smoking in public places. Like their counterparts in Ireland, Norwegian bar patrons will have to smoke out on the street.

And that's our look around the world.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: We want to go right away to CNN's David Mattingly, who is reporting on the first day of the Laci Peterson much trial in Redwood City, California -- David. DAVID MATTINGLY, CNN CORRESPONDENT: Wolf, day one of the Scott Peterson trial proving to be a one-sided affair, as the defense is taking -- the prosecution, excuse me, is taking all day to lay out its opening remarks.

(BEGIN VIDEOTAPE)

MATTINGLY (voice-over): Scott Peterson did not look as prosecutor Rick Distaso showed the jury pictures of him with girlfriend Amber Frey. Distaso detailed how wife, Laci, attended a Christmas party alone, while Scott and Amber attended a party together in formal attire. When confronted with these pictures, Rick Distaso said, Peterson told investigators, "Is that supposed to be me?"

Peterson's family emerged from court unshaken, waiting for the defense to take its turn.

UNIDENTIFIED MALE: Same thing. Nothing new. No evidence.

UNIDENTIFIED FEMALE: Except that he referred to it as a game.

MATTINGLY: But Peterson's affair is only part of a litany of deception and inconsistencies, according to Distaso, who said for the first time that Peterson claimed he left his home Christmas Eve morning at 9:30. But cell phone tower records show he was still at home.

Peterson told two people that night he went golfing, when he later told investigators he went fishing. And Distaso also said that the cover of Peterson's boat was covered with gasoline capable of dissolving any evidence of DNA. In one moment of emotion, Laci Peterson's father, Dennis, was brought to tears when a picture of a smiling pregnant Laci was shown to the court.

(END VIDEOTAPE)

MATTINGLY: And the pattern of deception continuing this afternoon. The prosecutors just played a recording of a conversation between Scott Peterson and Amber Frey recorded on New Year's Eve after Laci was reported missing. In this conversation, Scott Peterson told Amber he was in Europe when in fact he was in California -- back to you.

BLITZER: David Mattingly reporting on day one of this trial -- thanks, David, very much.

The results of our "Web Question of the Day," that's coming up. Plus, a high-speed ferry makes a splash in the Great Lakes.

(COMMERCIAL BREAK)

BLITZER: Take a look. Here's how you're weighing in on our "Web Question of the Day." As you look at these numbers, remember, this is not a scientific poll.

Now our picture of the day, the first high-speed ferry on the Great Lakes. The Lake Express made its maiden voyage today, crossing Lake Michigan in about 2.5 hours. It can carry 46 cars. Motorists traveling between Milwaukee and Western Michigan can cut their trip time in half. Very good.

A reminder, we're on weekdays 5:00 Eastern, also noon Eastern. Tomorrow, 5:00 p.m., among my guests, Tim Russert of NBC's "Meet the Press" and former Secretary of State Madeleine Albright.

I'm Wolf Blitzer in Washington. "LOU DOBBS TONIGHT" starts right now.

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