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CPA Hands Over Authority in Iraq 2 Days Early; Supreme Court Rules Gitmo Detainees Can Have Representation

Aired June 28, 2004 - 10:58   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.


BETTY NGUYEN, CNN ANCHOR: Two major stories we're following at this hour. In Iraq, an historic moment. Interim Prime Minister Allawi and others in the interim government are sworn in, after the coalition authority handed over sovereignty two days ahead of schedule. We'll have the latest just ahead.
And here in the United States, major decisions from the U.S. Supreme Court involving suspects in the war on terror. In one case, the court says foreign at Guantanamo Bay can use American courts to challenge their detention. CNN's Bob Franken will join us momentarily with more on that case, and today's other big decisions.

It's 11 a.m. on the East Coast, 8 a.m. in the West. From the CNN Center in Atlanta I'm Betty Nguyen in for Daryn Kagan today.

A first on CNN. An historic handover of power opens a new chapter in Iraq. The U.S. restored sovereignty to the Iraqis today, two days ahead of schedule. The official transfer took place during a low-key ceremony at coalition headquarters inside Baghdad's Green Zone. The former U.S. administrator in Iraq says he is confident the new interim government is ready to meet challenges ahead. Paul Bremer spent 14 months as head of the Coalition Provisional Authority. Within two hours after the handover ceremony, Bremer boarded a plane and left the country. President Bush was briefed yesterday on the early transfer of power in Iraq. Mr. Bush is attending the NATO summit with other world leaders in Turkey.

He marked the event by exchanging a whispered comment and a handshake with British Prime Minister Tony Blair, his staunchest Iraq ally.

Well, Iraqis are expressing cautious optimism about their country's return to self-rule. They're well aware of the challenges facing the interim government that was sworn in today. CNN Baghdad bureau chief Jane Arraf is in the Iraqi capital with more on the handover of power -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Betty, the American official who essentially oversaw this country for more than a year has left the country, leaving it in Iraqi hands. L. Paul Bremer, who signed himself out of a job this morning got onto a helicopter taking him from the so-called Green Zone in the former -- Saddam's former palace in the center of the city to the airport on his way home.

He's left a much different Baghdad than he arrived in more than a year ago. A few hours ago he formally handed the documents handing over authority for the country to new leaders in Iraq's interim government. The prime minister, Iyad Allawi told Iraqis shortly after that he was going to do a lot of things to put the country back on the path to peace and prosperity, but he needed their help, and particularly he said, he needed their help in tracking down people responsible for the ongoing attacks.

(BEGIN VIDEO CLIP)

IYAD ALLAWI, IRAQI INTERIM PRIME MINISTER (through translator): Dear free people, our dear Iraq is now at a setback, but it is a very temporary setback. And we will rise up after that like mountains, standing up very firm. And we will protect all the people regardless of religion, color or any other consideration. So every Iraqi will have the right to their unified, united Iraq where brotherhood and justice prevail.

(END VIDEO CLIP)

ARRAF: As for Iraqis, they are undeniably happy that they now are no longer formally under occupation. You wouldn't really know anything had happened in the streets, though. A lot of people still at home, still worried that there could be attacks. As officials warn, they likely will be -- Betty.

NGUYEN: Jane, security is obviously a big concern. But for this new government, what's the first order of business?

ARRAF: It's really security, Betty. Iyad Allawi, the prime minister, has made very clear that he intends to introduce some measures that won't exactly be martial law, but could remind a lot of people of some elements of martial law, restricting freedoms, imposing curfews, perhaps. It could be any number of measures. And people here really believe that some measures might be called for. These are desperate times.

They're expecting more car bombs, more assassinations, more of the kind of attacks that have characterized the last few months. There's no indication that just because the country has been handed back to Iraqi authorities that those are going to end -- Betty.

NGUYEN: But wasn't that part of stepping up this transfer to hopefully end some of those insurgent attacks?

ARRAF: It really was aimed, according to some officials, at making sure that a lot of major headline-grabbing devastating attacks didn't actually take place at the same time that the handover was occurring. Now it doesn't necessarily mean that they won't take place at all, just that they are perhaps deferred, delayed and won't have quite the impact. But this is still a very precarious situation that Iraqis are in, that their leaders are in -- Betty.

NGUYEN: This happened so fast. Many of us were caught off- guard, very surprised by it all. How long did it take for word to get to the streets of Iraq?

ARRAF: Well, it took pretty well everyone by surprise. And that's because of the intense security that was surrounding it. In fact, most people were told it would take place two days from now, which is what they were preparing for. It probably would have taken not very long. A lot of people do have satellite TV when there's electricity on in their homes. A lot of people listen to radio.

And in fact, this is quite symbolic. Apart from the very important legal aspect of the country no longer being under occupation, a lot of things really won't change. Iraqis have been handed back their country, but in addition to the huge potential, they've been given all the responsibility for all the problems this country has as well -- Betty.

NGUYEN: Nonetheless, an historic day there in Iraq. CNN's Baghdad bureau chief Jane Arraf. Thank you.

Well, more coalition casualties in Iraq today. A British soldier was killed when his patrol hit a roadside bomb in the southern Iraqi city of Basra. Two other British troops were wounded in that attack.

The transfer of power may be complete, but the hostage situation remains unresolved. A Utah family says their relative is a U.S. Marine being held hostage in Iraq. The Pentagon says Corporal Wassef Ali Hassoun has been missing from his unit for nearly a week now. A family spokesman read this statement:

(BEGIN VIDEO CLIP)

TAREK NOSSEIR, FAMILY SPOKESMAN: In the name of Allah, the merciful, the compassionate, we accept destiny with its good and its bad. We pray and we plead for his safe release and we ask all people of the world to join us in our prayers. May God bless us all.

(END VIDEO CLIP)

NGUYEN: The captors have vowed to behead their hostages unless the coalition releases all Iraqi prisoners.

Well, with the handover completed, coalition officials says they will transfer legal custody of Saddam Hussein to the Iraqi government some time within the next few days, but because of security concerns, another official says the U.S. will still guard the deposed leader. But Hussein's lawyers say the move would violate international law which they say dictates that Hussein and other prisoners of war be set free after a transfer of power.

President Bush was meeting with world leaders at the NATO summit in Turkey as the transfer of power was taking place in Iraq. And for reaction from the president, we want to go live now to Istanbul and CNN's senior White House correspondent, John King.

Hi, John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Hello to you, Betty. Administration officials tell us this dramatic plan, the surprise early transition of sovereignty, has been in the works for about a week. Prime Minister Allawi in Iraqi finally said yesterday he was ready to go forward with this. The White House saying the prime minister said it would strengthen his hand in trying to deal with the terrorists and others involved in the insurgency in Iraq.

Mr. Bush received word while here at the NATO summit that in fact the transition was taking place in Baghdad. And at a question and answer session with Prime Minister Tony Blair of Great Britain a short time ago, Mr. Bush hailed this as a turning point for the people of Iraq.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I hope for Iraqis in a day that terrorist enemies hoped never to see. The terrorists are doing all they can to stop the rise of a free Iraq. But their bombs and attacks have not prevented Iraqi sovereignty. And they will not prevent Iraqi democracy.

(END VIDEO CLIP)

KING: A new government in Iraq where both the president and Prime Minister Blair saying their troops would stay in Iraq as long as it takes to complete the mission. A new government, Prime Minister Blair acknowledging, perhaps a new day, but also many of the same security challenges.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: And I think what is interesting about this situation is that for those people who are there in Iraq causing this death and destruction, they have a very, very clear and simple objective, and the objective is not just to destabilize Iraq, to produce chaos, to produce bloodshed, to try and prevent democracy. The strategy of these terrorists is to try and prevent Iraq becoming a symbol of hope, not just for the Iraqi people, but actually for their region in the wider world.

(END VIDEO CLIP)

KING: Both leaders, President Bush and Prime Minister Blair, also celebrating NATO's decision to promise that it would help train Iraq's security and police forces. Don't look for any new significant troops on the ground in terms of security forces. The United States has 138,000, 140,000 troops in Iraq. That will remain the case for some time to come. Britain is the largest contingent in the other coalition troops, 25,000 of them total.

But both leaders saying now that NATO will help train Iraqi security forces, it is proof to them, Mr. Blair and Mr. Bush said, that the bitter debate over going to war is over and that the international community is now united in trying to help this new government face its many, many challenges -- Betty.

NGUYEN: Many challenges there are. Senior White House correspondent John King at the NATO summit in Turkey. Thank you.

And be sure to join CNN for our special prime time coverage of the early handover. It begins tonight at 7 p.m. Eastern. CNN's Anderson Cooper will be live from Baghdad. Then at 8:00, Paula Zahn is live from Camp Lejeune with military families and the impact on troops. Followed at 9 p.m. with Larry King and 10, Aaron Brown live from Washington.

And you can follow developments on the handover of power in Iraq any time. All you have to do is just logon to cnn.com/iraq. Can you even sign up for breaking news e-mail alerts.

The transfer is complete, but some would say now comes the really hard part. Coming up, we'll look at some of the biggest challenges facing the new Iraqi government. We're joined by the author of "The Case for Sovereignty." That's ahead.

But up next, the Supreme Court makes two very big decisions in the battle between civil liberties and the war on terror. We'll take you live to D.C. to show you what it all means when "CNN LIVE TODAY" returns.

(COMMERCIAL BREAK)

NGUYEN: A surprise in Baghdad today, the U.S. transferred political power to the new interim Iraqi government. U.S. administrator Paul Bremer dissolved the Coalition Authority and left the country. President Bush at a NATO summit in Turkey hailed an agreement for NATO to help train Iraqi forces. We're going to have much more on this coming up.

First, though, a legal setback and a mixed verdict on how far the Bush administration can go in the war on terror. The Supreme Court ruled today in cases involving the legal rights at so-called enemy combatants and detainees at Guantanamo Bay, Cuba. National correspondent Bob Franken is at the Supreme Court with all the details.

Hi, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Hello. And the rulings are quite a surprise, particularly the one on Guantanamo Bay. What the justices have ruled is that the courts of the United States can have jurisdiction over the detainees and their treatment at Guantanamo Bay. The administration had argued successfully in lower courts that because Guantanamo Bay Naval Base was outside the sovereign territory of the U.S., it was part of Cuba, the court's jurisdiction did not go that far.

But in a ruling the court said today by the express terms of its agreement with Cuba, the United States exercises complete jurisdiction and control over the Guantanamo base and may continue to do so permanently if it chooses. The government concedes that the habeas corpus statute would be one that would apply to citizens being held there. Therefore, the court ruled there was no difference. And the detainees must have some sort of process so they can contest their being held. The court went on to say it did not specify what that process is. So there is going to be an awful lot of maneuvering, that in the Guantanamo Bay case. Now in the case of Jose Padilla, Jose Padilla was the case most were watching this most closely, the U.S. citizen arrested at O'Hare Airport, that is to say, on U.S. soil a couple of years ago and charged with being part of an al Qaeda dirty bomb plot. The issue was could the president declare an enemy combatant a U.S. citizen arrested on U.S. soil?

The Supreme Court justices did not really rule on that. They said that it had been put into the wrong court. It was a ruling where he was originally held by the Circuit Court of Appeals in New York State. He is now being held in the military big in Charleston, South Carolina. And the Supreme Court said that is the place that some sort of challenge would have to be made.

But in the case of Yasser Hamdi, this is one that was a little bit more vague. Hamdi is a U.S. citizen by birth. He, however, was arrested on the battlefield in Afghanistan. Nevertheless, his lawyers said that he, too, had the right to confront his charges, had the right to an attorney. The court ruled in favor of Hamdi. It was a ruling by -- a 5-4 ruling.

The main opinion was written by Sandra Day O'Connor, who said, moreover: "As critical as the government's interest may be in detaining those who actually pose an immediate threat to the national security of the United States during ongoing international conflict, history and common sense teach us that an unchecked system of detention carries the potential to become a means for oppression and abuse of others who do not present that sort of threat."

The administration had argued that in a time of war, a U.S. citizen could be declared an enemy combatant. Reports did not dispute that, but said that at some point they do have the right to face their charges, the constitutional right to habeas corpus. So the general overall tenor of today's rulings, a repudiation of the administration's position, and in the case of the Padilla case, it's going back to the court so it can be argued in the same court -- in the proper court -- Betty.

NGUYEN: CNN's Bob Franken at the Supreme Court. A lot to sort out on this. We want to get some insight now from Jeffrey Toobin, senior analyst here at CNN.

Jeffrey, you've been listening to all of this. In the Hamdi case specifically, since there was no ruling, does that mean that the government can still hold an American indefinitely without charges, without access a lawyer?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Well, it definitely means that they have to give him a lawyer, probably right away. And it does mean that he can challenge his incarceration. Whether they can continue to hold him after the challenge, that's something that the lower courts are going to have to sort out.

Based on what I have been able to see so far, it is not at all clear what standards that the courts will have to use in evaluating whether these individuals, whether Hamdi, the American citizen, or the non-Americans who are being held in Guantanamo, what standard the courts have to apply in deciding whether to release them or keep them in court.

However, what is clear out of today's decisions is that these inmates can challenge their incarceration in American courts. That was something furiously contested by the Bush administration. The Bush administration has clearly lost that part of the argument. What remains to be seen is now what happens once these cases go into court.

NGUYEN: Do you expect a flood of cases now that this ruling has been issued?

TOOBIN: An absolute flood of cases, Betty. I think virtually all of the 600 in Guantanamo will file lawsuits seeking to be released. Hamdi will certainly now get his day in court. Padilla, whose case was sorted shunted aside on a technicality, he will go to the correct court and file his -- and file a request to be released. So I think all of these cases -- the administration previous argument had been none of them belong in court at all. Now it is clear all of them will get into court. What happens to them once they're in court is not clear.

NGUYEN: What does this mean for the government because it was arguing that if you allow them to go through the court system, especially in the Guantanamo base cases that these folks will tie up the system and they won't be able to interrogate them especially during a time when there's a war against terrorism going on right now?

TOOBIN: Right. The Bush administration's strongest argument was, there's a war on here. And we can't have a bunch of lawyers crawling around battlefields trying to get statements from people, having our soldiers deposed. And that's an argument that this court is usually very receptive to.

But what seems to be critical here, especially in the Guantanamo case, is these prisoners are so far removed from the battlefield and they are so much under American government control, American control of Guantanamo base is complete, total, absolute. That under those circumstances, the legal proceedings can begin.

There's no disruption of the battlefield. There's no interference with the president's military prerogatives if -- when prisoners are being held under total American control, at that point you have to start to give them a right to challenge their incarceration and that's what's going to begin starting today.

NGUYEN: A lot more to come on this no doubt. CNN's senior legal analyst, Jeffrey Toobin, thank you.

Iraq is now officially in the hands of Iraqis. Up next, we'll take a look at just what kind of the challenges the new government will face, including scenes like these, an insurgency that does not want to go away quietly.

We will have continuing coverage right here on CNN LIVE TODAY.

(COMMERCIAL BREAK)

NGUYEN: No doubt the Iraqis face many challenges with the restoration of sovereignty today. Jeremy Rabkin is a professor at Cornell University and the author of the new book, "The Case for Sovereignty." He joins us in Syracuse, New York, this morning.

Thank you for being with us.

JEREMY RABKIN, AUTHOR, "THE CASE FOR SOVEREIGNTY": Thank you.

NGUYEN: Now that sovereignty has been transferred, what are the challenges that lie ahead?

RABKIN: Well, the obvious one is they have to get control of the territory. A sovereign state is supposed to have a monopoly on the use of force and obviously there's a lot of other people using force in Iraq.

NGUYEN: But of course, this country will no doubt benefit from this transfer of power.

RABKIN: We hope so. The fundamental argument here that the Iraqi people, who have gotten very impatient with the occupation, very distrustful of these foreign troops, that they'll have more trust in a government of their own. And so far, I mean, we're just starting, but so far polls suggest they have high expectations for the new government, they're hopeful. That's good.

NGUYEN: Being hopeful is one thing. But let's talk about the facts. How effectively can this government grow itself?

RABKIN: Well, we're going to find out. The first thing is, they need to train troops and police and a whole new set of functionaries, officials. And this is going to take time. And hopefully they will have enough time, people will be patient and put up with what's going to be a lot of disruption and still continuing violence.

NGUYEN: Now with this new sovereignty, the government has to be on a unified face. What kind of power must it assert during these early stages that are so important?

RABKIN: Yes. There are going to be a few episodes in which the American commanders or other commanders or other commanders of foreign troops want to do something. And perhaps the government says, no, we don't want to you do that. And that is going to be interesting to see how that plays out. I think on both sides they're going to be very cautious about displaying an open confrontation.

NGUYEN: Will it be truly easier now that the U.S. is playing an assisting role?

RABKIN: I think the whole argument here is that you cannot defeat terrorist insurgency without popular support. The people have to be on the side of the government if the government is going to prevail. And it's reasonable hope that the people will be more on the side of a government that is Iraqi. NGUYEN: You've studied sovereign countries, how long is it going to take for this country to get back on its feet?

RABKIN: Probably quite a few years. But I think we will know in the course of the next year whether it has, you know, good prospects or not.

NGUYEN: Is the whole...

RABKIN: If this is going to...

NGUYEN: Go ahead.

RABKIN: I was just going to say to fall apart, it's going to happen in the next year. And we'll see that.

NGUYEN: But the hope here, though, is that Iraq becomes a prime example of sovereignty and the transfer of power and the how the U.S. can help in these countries.

RABKIN: Yes, yes. And Iraq has a lot of things going for it. It has a lot of educated people as well as a lot of oil. It has people who had a terrible experience, which -- under Saddam Hussein, which they're all recoiling from. And that has made people a little more cautious, at least it has made most people more cautious. And finally, it has got a very good example within Iraq of the Kurds who had been running a democratic and pretty free society in a third of the country. So it has a lot going for it. And there's reason to be hopeful.

NGUYEN: Jeremy, a lot of people are upset with the U.S. role. Many say this new government is just a puppet for the U.S. control there. But in your opinion, what do you think about that? Do you think this really stands a chance?

RABKIN: Well, we're going to find out. It certainly stands a chance. I don't see how anyone can say from the outside, it has no chance. We're just going to have to see. It is interesting that, just from preliminary polls, people in Iraq, who, as I said, are distrustful of the Americans, do have a fair amount of trust in the new government. And part of the reason for that I think is that most of the people in the new government, they're known to people in Iraq and they don't view them as simply American stooges.

NGUYEN: All right. Jeremy Rabkin, author of "The Case for Sovereignty", thank you.

RABKIN: Thank you.

(WEATHER REPORT)

NGUYEN: It is the dawn of a new era in Iraq. Coming up, more on the surprise transfer of power two days ahead of schedule. CNN LIVE TODAY is coming right back.

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Aired June 28, 2004 - 10:58   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Two major stories we're following at this hour. In Iraq, an historic moment. Interim Prime Minister Allawi and others in the interim government are sworn in, after the coalition authority handed over sovereignty two days ahead of schedule. We'll have the latest just ahead.
And here in the United States, major decisions from the U.S. Supreme Court involving suspects in the war on terror. In one case, the court says foreign at Guantanamo Bay can use American courts to challenge their detention. CNN's Bob Franken will join us momentarily with more on that case, and today's other big decisions.

It's 11 a.m. on the East Coast, 8 a.m. in the West. From the CNN Center in Atlanta I'm Betty Nguyen in for Daryn Kagan today.

A first on CNN. An historic handover of power opens a new chapter in Iraq. The U.S. restored sovereignty to the Iraqis today, two days ahead of schedule. The official transfer took place during a low-key ceremony at coalition headquarters inside Baghdad's Green Zone. The former U.S. administrator in Iraq says he is confident the new interim government is ready to meet challenges ahead. Paul Bremer spent 14 months as head of the Coalition Provisional Authority. Within two hours after the handover ceremony, Bremer boarded a plane and left the country. President Bush was briefed yesterday on the early transfer of power in Iraq. Mr. Bush is attending the NATO summit with other world leaders in Turkey.

He marked the event by exchanging a whispered comment and a handshake with British Prime Minister Tony Blair, his staunchest Iraq ally.

Well, Iraqis are expressing cautious optimism about their country's return to self-rule. They're well aware of the challenges facing the interim government that was sworn in today. CNN Baghdad bureau chief Jane Arraf is in the Iraqi capital with more on the handover of power -- Jane.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Betty, the American official who essentially oversaw this country for more than a year has left the country, leaving it in Iraqi hands. L. Paul Bremer, who signed himself out of a job this morning got onto a helicopter taking him from the so-called Green Zone in the former -- Saddam's former palace in the center of the city to the airport on his way home.

He's left a much different Baghdad than he arrived in more than a year ago. A few hours ago he formally handed the documents handing over authority for the country to new leaders in Iraq's interim government. The prime minister, Iyad Allawi told Iraqis shortly after that he was going to do a lot of things to put the country back on the path to peace and prosperity, but he needed their help, and particularly he said, he needed their help in tracking down people responsible for the ongoing attacks.

(BEGIN VIDEO CLIP)

IYAD ALLAWI, IRAQI INTERIM PRIME MINISTER (through translator): Dear free people, our dear Iraq is now at a setback, but it is a very temporary setback. And we will rise up after that like mountains, standing up very firm. And we will protect all the people regardless of religion, color or any other consideration. So every Iraqi will have the right to their unified, united Iraq where brotherhood and justice prevail.

(END VIDEO CLIP)

ARRAF: As for Iraqis, they are undeniably happy that they now are no longer formally under occupation. You wouldn't really know anything had happened in the streets, though. A lot of people still at home, still worried that there could be attacks. As officials warn, they likely will be -- Betty.

NGUYEN: Jane, security is obviously a big concern. But for this new government, what's the first order of business?

ARRAF: It's really security, Betty. Iyad Allawi, the prime minister, has made very clear that he intends to introduce some measures that won't exactly be martial law, but could remind a lot of people of some elements of martial law, restricting freedoms, imposing curfews, perhaps. It could be any number of measures. And people here really believe that some measures might be called for. These are desperate times.

They're expecting more car bombs, more assassinations, more of the kind of attacks that have characterized the last few months. There's no indication that just because the country has been handed back to Iraqi authorities that those are going to end -- Betty.

NGUYEN: But wasn't that part of stepping up this transfer to hopefully end some of those insurgent attacks?

ARRAF: It really was aimed, according to some officials, at making sure that a lot of major headline-grabbing devastating attacks didn't actually take place at the same time that the handover was occurring. Now it doesn't necessarily mean that they won't take place at all, just that they are perhaps deferred, delayed and won't have quite the impact. But this is still a very precarious situation that Iraqis are in, that their leaders are in -- Betty.

NGUYEN: This happened so fast. Many of us were caught off- guard, very surprised by it all. How long did it take for word to get to the streets of Iraq?

ARRAF: Well, it took pretty well everyone by surprise. And that's because of the intense security that was surrounding it. In fact, most people were told it would take place two days from now, which is what they were preparing for. It probably would have taken not very long. A lot of people do have satellite TV when there's electricity on in their homes. A lot of people listen to radio.

And in fact, this is quite symbolic. Apart from the very important legal aspect of the country no longer being under occupation, a lot of things really won't change. Iraqis have been handed back their country, but in addition to the huge potential, they've been given all the responsibility for all the problems this country has as well -- Betty.

NGUYEN: Nonetheless, an historic day there in Iraq. CNN's Baghdad bureau chief Jane Arraf. Thank you.

Well, more coalition casualties in Iraq today. A British soldier was killed when his patrol hit a roadside bomb in the southern Iraqi city of Basra. Two other British troops were wounded in that attack.

The transfer of power may be complete, but the hostage situation remains unresolved. A Utah family says their relative is a U.S. Marine being held hostage in Iraq. The Pentagon says Corporal Wassef Ali Hassoun has been missing from his unit for nearly a week now. A family spokesman read this statement:

(BEGIN VIDEO CLIP)

TAREK NOSSEIR, FAMILY SPOKESMAN: In the name of Allah, the merciful, the compassionate, we accept destiny with its good and its bad. We pray and we plead for his safe release and we ask all people of the world to join us in our prayers. May God bless us all.

(END VIDEO CLIP)

NGUYEN: The captors have vowed to behead their hostages unless the coalition releases all Iraqi prisoners.

Well, with the handover completed, coalition officials says they will transfer legal custody of Saddam Hussein to the Iraqi government some time within the next few days, but because of security concerns, another official says the U.S. will still guard the deposed leader. But Hussein's lawyers say the move would violate international law which they say dictates that Hussein and other prisoners of war be set free after a transfer of power.

President Bush was meeting with world leaders at the NATO summit in Turkey as the transfer of power was taking place in Iraq. And for reaction from the president, we want to go live now to Istanbul and CNN's senior White House correspondent, John King.

Hi, John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Hello to you, Betty. Administration officials tell us this dramatic plan, the surprise early transition of sovereignty, has been in the works for about a week. Prime Minister Allawi in Iraqi finally said yesterday he was ready to go forward with this. The White House saying the prime minister said it would strengthen his hand in trying to deal with the terrorists and others involved in the insurgency in Iraq.

Mr. Bush received word while here at the NATO summit that in fact the transition was taking place in Baghdad. And at a question and answer session with Prime Minister Tony Blair of Great Britain a short time ago, Mr. Bush hailed this as a turning point for the people of Iraq.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I hope for Iraqis in a day that terrorist enemies hoped never to see. The terrorists are doing all they can to stop the rise of a free Iraq. But their bombs and attacks have not prevented Iraqi sovereignty. And they will not prevent Iraqi democracy.

(END VIDEO CLIP)

KING: A new government in Iraq where both the president and Prime Minister Blair saying their troops would stay in Iraq as long as it takes to complete the mission. A new government, Prime Minister Blair acknowledging, perhaps a new day, but also many of the same security challenges.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: And I think what is interesting about this situation is that for those people who are there in Iraq causing this death and destruction, they have a very, very clear and simple objective, and the objective is not just to destabilize Iraq, to produce chaos, to produce bloodshed, to try and prevent democracy. The strategy of these terrorists is to try and prevent Iraq becoming a symbol of hope, not just for the Iraqi people, but actually for their region in the wider world.

(END VIDEO CLIP)

KING: Both leaders, President Bush and Prime Minister Blair, also celebrating NATO's decision to promise that it would help train Iraq's security and police forces. Don't look for any new significant troops on the ground in terms of security forces. The United States has 138,000, 140,000 troops in Iraq. That will remain the case for some time to come. Britain is the largest contingent in the other coalition troops, 25,000 of them total.

But both leaders saying now that NATO will help train Iraqi security forces, it is proof to them, Mr. Blair and Mr. Bush said, that the bitter debate over going to war is over and that the international community is now united in trying to help this new government face its many, many challenges -- Betty.

NGUYEN: Many challenges there are. Senior White House correspondent John King at the NATO summit in Turkey. Thank you.

And be sure to join CNN for our special prime time coverage of the early handover. It begins tonight at 7 p.m. Eastern. CNN's Anderson Cooper will be live from Baghdad. Then at 8:00, Paula Zahn is live from Camp Lejeune with military families and the impact on troops. Followed at 9 p.m. with Larry King and 10, Aaron Brown live from Washington.

And you can follow developments on the handover of power in Iraq any time. All you have to do is just logon to cnn.com/iraq. Can you even sign up for breaking news e-mail alerts.

The transfer is complete, but some would say now comes the really hard part. Coming up, we'll look at some of the biggest challenges facing the new Iraqi government. We're joined by the author of "The Case for Sovereignty." That's ahead.

But up next, the Supreme Court makes two very big decisions in the battle between civil liberties and the war on terror. We'll take you live to D.C. to show you what it all means when "CNN LIVE TODAY" returns.

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NGUYEN: A surprise in Baghdad today, the U.S. transferred political power to the new interim Iraqi government. U.S. administrator Paul Bremer dissolved the Coalition Authority and left the country. President Bush at a NATO summit in Turkey hailed an agreement for NATO to help train Iraqi forces. We're going to have much more on this coming up.

First, though, a legal setback and a mixed verdict on how far the Bush administration can go in the war on terror. The Supreme Court ruled today in cases involving the legal rights at so-called enemy combatants and detainees at Guantanamo Bay, Cuba. National correspondent Bob Franken is at the Supreme Court with all the details.

Hi, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Hello. And the rulings are quite a surprise, particularly the one on Guantanamo Bay. What the justices have ruled is that the courts of the United States can have jurisdiction over the detainees and their treatment at Guantanamo Bay. The administration had argued successfully in lower courts that because Guantanamo Bay Naval Base was outside the sovereign territory of the U.S., it was part of Cuba, the court's jurisdiction did not go that far.

But in a ruling the court said today by the express terms of its agreement with Cuba, the United States exercises complete jurisdiction and control over the Guantanamo base and may continue to do so permanently if it chooses. The government concedes that the habeas corpus statute would be one that would apply to citizens being held there. Therefore, the court ruled there was no difference. And the detainees must have some sort of process so they can contest their being held. The court went on to say it did not specify what that process is. So there is going to be an awful lot of maneuvering, that in the Guantanamo Bay case. Now in the case of Jose Padilla, Jose Padilla was the case most were watching this most closely, the U.S. citizen arrested at O'Hare Airport, that is to say, on U.S. soil a couple of years ago and charged with being part of an al Qaeda dirty bomb plot. The issue was could the president declare an enemy combatant a U.S. citizen arrested on U.S. soil?

The Supreme Court justices did not really rule on that. They said that it had been put into the wrong court. It was a ruling where he was originally held by the Circuit Court of Appeals in New York State. He is now being held in the military big in Charleston, South Carolina. And the Supreme Court said that is the place that some sort of challenge would have to be made.

But in the case of Yasser Hamdi, this is one that was a little bit more vague. Hamdi is a U.S. citizen by birth. He, however, was arrested on the battlefield in Afghanistan. Nevertheless, his lawyers said that he, too, had the right to confront his charges, had the right to an attorney. The court ruled in favor of Hamdi. It was a ruling by -- a 5-4 ruling.

The main opinion was written by Sandra Day O'Connor, who said, moreover: "As critical as the government's interest may be in detaining those who actually pose an immediate threat to the national security of the United States during ongoing international conflict, history and common sense teach us that an unchecked system of detention carries the potential to become a means for oppression and abuse of others who do not present that sort of threat."

The administration had argued that in a time of war, a U.S. citizen could be declared an enemy combatant. Reports did not dispute that, but said that at some point they do have the right to face their charges, the constitutional right to habeas corpus. So the general overall tenor of today's rulings, a repudiation of the administration's position, and in the case of the Padilla case, it's going back to the court so it can be argued in the same court -- in the proper court -- Betty.

NGUYEN: CNN's Bob Franken at the Supreme Court. A lot to sort out on this. We want to get some insight now from Jeffrey Toobin, senior analyst here at CNN.

Jeffrey, you've been listening to all of this. In the Hamdi case specifically, since there was no ruling, does that mean that the government can still hold an American indefinitely without charges, without access a lawyer?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Well, it definitely means that they have to give him a lawyer, probably right away. And it does mean that he can challenge his incarceration. Whether they can continue to hold him after the challenge, that's something that the lower courts are going to have to sort out.

Based on what I have been able to see so far, it is not at all clear what standards that the courts will have to use in evaluating whether these individuals, whether Hamdi, the American citizen, or the non-Americans who are being held in Guantanamo, what standard the courts have to apply in deciding whether to release them or keep them in court.

However, what is clear out of today's decisions is that these inmates can challenge their incarceration in American courts. That was something furiously contested by the Bush administration. The Bush administration has clearly lost that part of the argument. What remains to be seen is now what happens once these cases go into court.

NGUYEN: Do you expect a flood of cases now that this ruling has been issued?

TOOBIN: An absolute flood of cases, Betty. I think virtually all of the 600 in Guantanamo will file lawsuits seeking to be released. Hamdi will certainly now get his day in court. Padilla, whose case was sorted shunted aside on a technicality, he will go to the correct court and file his -- and file a request to be released. So I think all of these cases -- the administration previous argument had been none of them belong in court at all. Now it is clear all of them will get into court. What happens to them once they're in court is not clear.

NGUYEN: What does this mean for the government because it was arguing that if you allow them to go through the court system, especially in the Guantanamo base cases that these folks will tie up the system and they won't be able to interrogate them especially during a time when there's a war against terrorism going on right now?

TOOBIN: Right. The Bush administration's strongest argument was, there's a war on here. And we can't have a bunch of lawyers crawling around battlefields trying to get statements from people, having our soldiers deposed. And that's an argument that this court is usually very receptive to.

But what seems to be critical here, especially in the Guantanamo case, is these prisoners are so far removed from the battlefield and they are so much under American government control, American control of Guantanamo base is complete, total, absolute. That under those circumstances, the legal proceedings can begin.

There's no disruption of the battlefield. There's no interference with the president's military prerogatives if -- when prisoners are being held under total American control, at that point you have to start to give them a right to challenge their incarceration and that's what's going to begin starting today.

NGUYEN: A lot more to come on this no doubt. CNN's senior legal analyst, Jeffrey Toobin, thank you.

Iraq is now officially in the hands of Iraqis. Up next, we'll take a look at just what kind of the challenges the new government will face, including scenes like these, an insurgency that does not want to go away quietly.

We will have continuing coverage right here on CNN LIVE TODAY.

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NGUYEN: No doubt the Iraqis face many challenges with the restoration of sovereignty today. Jeremy Rabkin is a professor at Cornell University and the author of the new book, "The Case for Sovereignty." He joins us in Syracuse, New York, this morning.

Thank you for being with us.

JEREMY RABKIN, AUTHOR, "THE CASE FOR SOVEREIGNTY": Thank you.

NGUYEN: Now that sovereignty has been transferred, what are the challenges that lie ahead?

RABKIN: Well, the obvious one is they have to get control of the territory. A sovereign state is supposed to have a monopoly on the use of force and obviously there's a lot of other people using force in Iraq.

NGUYEN: But of course, this country will no doubt benefit from this transfer of power.

RABKIN: We hope so. The fundamental argument here that the Iraqi people, who have gotten very impatient with the occupation, very distrustful of these foreign troops, that they'll have more trust in a government of their own. And so far, I mean, we're just starting, but so far polls suggest they have high expectations for the new government, they're hopeful. That's good.

NGUYEN: Being hopeful is one thing. But let's talk about the facts. How effectively can this government grow itself?

RABKIN: Well, we're going to find out. The first thing is, they need to train troops and police and a whole new set of functionaries, officials. And this is going to take time. And hopefully they will have enough time, people will be patient and put up with what's going to be a lot of disruption and still continuing violence.

NGUYEN: Now with this new sovereignty, the government has to be on a unified face. What kind of power must it assert during these early stages that are so important?

RABKIN: Yes. There are going to be a few episodes in which the American commanders or other commanders or other commanders of foreign troops want to do something. And perhaps the government says, no, we don't want to you do that. And that is going to be interesting to see how that plays out. I think on both sides they're going to be very cautious about displaying an open confrontation.

NGUYEN: Will it be truly easier now that the U.S. is playing an assisting role?

RABKIN: I think the whole argument here is that you cannot defeat terrorist insurgency without popular support. The people have to be on the side of the government if the government is going to prevail. And it's reasonable hope that the people will be more on the side of a government that is Iraqi. NGUYEN: You've studied sovereign countries, how long is it going to take for this country to get back on its feet?

RABKIN: Probably quite a few years. But I think we will know in the course of the next year whether it has, you know, good prospects or not.

NGUYEN: Is the whole...

RABKIN: If this is going to...

NGUYEN: Go ahead.

RABKIN: I was just going to say to fall apart, it's going to happen in the next year. And we'll see that.

NGUYEN: But the hope here, though, is that Iraq becomes a prime example of sovereignty and the transfer of power and the how the U.S. can help in these countries.

RABKIN: Yes, yes. And Iraq has a lot of things going for it. It has a lot of educated people as well as a lot of oil. It has people who had a terrible experience, which -- under Saddam Hussein, which they're all recoiling from. And that has made people a little more cautious, at least it has made most people more cautious. And finally, it has got a very good example within Iraq of the Kurds who had been running a democratic and pretty free society in a third of the country. So it has a lot going for it. And there's reason to be hopeful.

NGUYEN: Jeremy, a lot of people are upset with the U.S. role. Many say this new government is just a puppet for the U.S. control there. But in your opinion, what do you think about that? Do you think this really stands a chance?

RABKIN: Well, we're going to find out. It certainly stands a chance. I don't see how anyone can say from the outside, it has no chance. We're just going to have to see. It is interesting that, just from preliminary polls, people in Iraq, who, as I said, are distrustful of the Americans, do have a fair amount of trust in the new government. And part of the reason for that I think is that most of the people in the new government, they're known to people in Iraq and they don't view them as simply American stooges.

NGUYEN: All right. Jeremy Rabkin, author of "The Case for Sovereignty", thank you.

RABKIN: Thank you.

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NGUYEN: It is the dawn of a new era in Iraq. Coming up, more on the surprise transfer of power two days ahead of schedule. CNN LIVE TODAY is coming right back.

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