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American Morning
Al Qaeda Allegedly Behind Plans to Strike U.S. Before Elections; Senate Intelligence Report Blasts CIA
Aired July 09, 2004 - 07:00 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.
BILL HEMMER, CNN ANCHOR: Good morning.
Authorities say the terror threat against the U.S. is at its highest level since 9/11 and the master planner may well be Osama bin Laden.
Senator John Kerry in his first interview since picking John Edwards to be his running mate only on CNN.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: This is a man who represents the values of our country, and this is a man strong enough and skilled enough to lead it.
(END VIDEO CLIP)
HEMMER: Here we are three days later. Is John Edwards giving John Kerry the bounce in the polls he's looking for?
And the number of coalition dead in Iraq now at 1,000. Did the Pentagon misunderstand the enemy from... (AUDIO GAP)
ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
HEMMER: Good morning everyone. It's Friday. Good to have you along with us. Soledad is out, Heidi Collins is in. Good morning to you.
HEIDI COLLINS, CNN ANCHOR: Barely.
(LAUGHTER)
HEMMER: Hang in there. Almost there. A big show this morning.
A lot of attention focused on the latest terrorist warnings. There are differences, too, between what's being said in public and what's being said in private.
Off the record, one lawmaker calls it the most worrisome situation since 9/11.
We'll talk about the threats. Saxby Chambliss, a member of the Senate Intelligence Committee -- also here from Homeland Security, Secretary Tom Ridge. Senator standing by in Washington. In a few moments we'll get to him.
COLLINS: Also, Israel apparently getting a harsh rebuke from the international community today.
We'll get an update from the -- from Ramallah, that is -- on the reports -- the court has deemed the much-discussed barrier in the West Bank is illegal. We'll look at the significance of that, as well.
HEMMER: Also this hour, Ken Lay -- can he beat the charges against him stemming from the Enron collapse? We'll talk to Jeff Toobin and Andy Serwer about that.
His picture is on the front page of just about every newspaper you pick up this morning from yesterday.
JACK CAFFERTY, CNN ANCHOR: Nice bracelets.
COLLINS: Yes.
CAFFERTY: The -- because it's Friday, we're going to take an absolutely serious medical issue and reduce it to the point of being trivial, and then use it as fodder for the e-mail "Question of the Day" for the next three hours.
That would be the plan. We'll explain...
COLLINS: I like knowing the plan.
CAFFERTY: We'll explain further in a few moments.
HEMMER: Thank you, Jack.
COLLINS: Very good.
HEMMER: Let's start with a senior intelligence official now telling CNN that terrorist plans to attack the U.S. before the elections in November are being directed by Osama bin Laden and his top lieutenants.
Homeland Security Secretary Tom Ridge says, though, that the U.S. has no specific knowledge about when, where or how those attacks may take place. He also says the nation's terror alert level is not being raised from its current yellow or elevated status.
Secretary Ridge calls the information collected in recent months sobering.
(BEGIN VIDEO CLIP)
TOM RIDGE, HOMELAND SECURITY SECRETARY: We are basically laying out before the general public the kind of information that we've received and its not us -- these are not conjectures or mythical statements we are making; these are pieces of information that we could raise comfortably to sources that we deem to be credible.
(END VIDEO CLIP) HEMMER: High profile summer events like the political conventions getting extra attention today. Plans are in place now for road and rail closures in Boston and New York City, where access to the convention sites will be strictly limited.
The threat of an al Qaeda attack comes at a time when the CIA is reeling. A Senate Intelligence Committee report due out today blasted the agency for its performance leading up to the war in Iraq.
Georgia Senator Saxby Chambliss, a member of that panel, live in D.C. with us this morning. Welcome back, Senator. Good morning.
SEN. SAXBY CHAMBLISS (R), GEORGIA: Good morning, Bill.
HEMMER: Before we talk about the report due out later today, what can you add, based on your discussions yesterday with Secretary Ridge, the American people need to know about this latest threat from al Qaeda?
CHAMBLISS: Well, Bill, we've seen over the last several weeks, and really the last several months, lot of information coming through the intelligence channels about the al Qaeda organization wanting to either influence or certainly disrupt the elections this fall in the United States very similar to what they did in Spain last spring.
And the more -- the closer we get to the election, the closer we get to high-profile events like the conventions, the more information we're picking up on.
So, that's why you're seeing Secretary Ridge and Director Mueller and other folks within the intel committee really coming forward and saying hey, this is serious, it could happen at any point in time, there are people we know who are here that are al Qaeda sleeper cells that this may be the event that they've been planning for years and now is the time they're going to execute it.
HEMMER: Here's the conflict, Senator. We've heard these warnings in the past. What is different this time that makes you believe it's more credible?
CHAMBLISS: Well, any time you hear a lot of conversation in the terrorist world about an event that might occur, it gives you real cause to be concerned, and I think that's the main difference.
We've had a lot more conversation. Plus, the information that we are receiving comes from very, very credible sources, as Secretary Ridge said yesterday.
HEMMER: Senator, let's talk about the report due out today from your Senate Intelligence Committee. You say wholesale mistakes were made by CIA analysts. What kind of mistakes, Senator?
CHAMBLISS: This report is going to be very specific, Bill, in pointing out some areas where analysts at CIA did work and gathered intelligence, and they came to conclusions, and we simply were able to discover that those conclusions were not based on sound facts. And as a result thereof, the information that was given by analysts to the director of the CIA, who then in turn passed that information on to the president, as well as to Congress -- the information simply wasn't correct. And we're going to be very specific in this report about certain particular incidents where that took place.
HEMMER: Senator, three days ago, your colleague, Carl Levin, the Democratic senator from Michigan, was on our program. He said there were two issues in this report: one that's very critical of George Tenet and the other side that's critical of how the White House used the information that CIA provided.
I believe you have been quoted as saying, though, that this report absolves both men, President Bush and George Tenet. Score these two comparisons together for us.
CHAMBLISS: Well, I'm not sure exactly what Senator Levin is talking about, but let me just say this.
Director Tenet has done a good job at the CIA. It is the most difficult job in Washington, D.C. outside of being president of the United States here, particularly for the last three years.
Director Tenet had to rely on the people who were providing him the information, and the information that was given to him simply was wrong.
Now, should he bear the responsibility? He's the head of that organization and he's already said if the organization made mistakes then they're my mistakes and my responsibility.
And that's what a good leader should do and what he has done.
With respect to the White House, the information that came out in the national intelligence estimate has been already disseminated in the public. We know now that the information contained in there was wrong. That's the exact information that was transmitted by the CIA through George Tenet to the president.
Now, the president does not have an obligation to go behind the information given to him to determine what the facts are that allow the analysts to arrive at that conclusion, so you can't blame the White House for something that was done by the agency that they rely on.
But again, we're in this report, we're going to detail those specific incidents, but I think it's important, too, Bill that this report is just the first step and we're not going to look backwards -- we're going to look forwards. Mistakes were made leading up to September 11. Mistakes were made leading up to the Iraqi conflict.
We've now got to figure out a way that we ensure that we fix those mistakes and make the reforms in the intelligence community that are necessary to made so that we can ensure that this doesn't happen again. HEMMER: We'll look for that report later today. On a personal note, you announced this week you're being treated for prostate cancer. How's your health, Senator?
CHAMBLISS: Well, I feel fine. It's something that came up during a routine physical exam that I have every year, and it just amplifies the fact that every male 45 years or older needs to have that PSA checked every year, and needs to have that digital exam every year, because this is a serious disease.
But it's a disease that can be cured if it's caught early. Mine was caught early and I'm very thankful of that, and I just hope every male in America follows the same route I did.
HEMMER: Our best to you and your health, Senator. Thanks.
All right. That report due again due out later today. 10:30 a.m. Eastern time.
Certainly coverage all day when it comes out. Also, the Homeland Security Secretary Tom Ridge also our guest today. We'll talk to him at 7:30 Eastern time, at about 22 minutes from now -- Heidi.
COLLINS: Last night on "LARRY KING LIVE," John Kerry gave his first sit-down interview since choosing John Edwards as his running mate.
Senator Kerry says he and Edwards can manage a far more effective war on terror, and he criticized President Bush for rushing into war in Iraq.
(BEGIN VIDEO CLIP, "LARRY KING LIVE")
KERRY: From day one, day one, way before we went in, I urged this president to do what was necessary diplomatically to build the international support that would have been at our side.
From day one I urged the president to exhaust the remedies available to us, so that we didn't rush to war. I wanted this president to give meaning to the words "going to war as a last resort."
I don't believe he did, Larry. It's just very simple. He didn't. And the facts show it.
We're paying an unbelievable price in the treasury of our young, and in the costs in billions of dollars to the American people, because this president miscalculated.
(END VIDEO CLIP)
COLLINS: It wasn't all serious last night, though, as you can see here. The senator also had time to jam at a celebrity concert at Radio City Music Hall in New York City. He was pretty good.
In fact, the star-studded fund raising concert for the new Democratic ticket last night at New York's Radio City Music Hall -- a little place right across the street here -- they raised more than $7 million.
But, how much help is John Edwards to John Kerry's race for the White House? Kelly Wallace is here now with more on that. Is that the -- an easy question to answer?
KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Well, you know, much has been made of how the Kerry campaign has this carefully choreographed roll-out to introduce the Democratic ticket to the American people.
One aide we were talking to said so far it's gone off without a hitch, and you can possibly say it might have even gone off even better than the campaign staff could have ever predicted.
(BEGIN VIDEOTAPE)
WALLACE (voice-over): We learned John Kerry is very good at keeping a secret.
KERRY: But I can choose only one running mate, and this morning I have done so.
WALLACE: And we learned Team Kerry knows a thing or two about gearing up publicity, making us wait a full day for the first photo op, which most television networks carried live.
It did feel a bit like a wedding photo. Two families thrown together for the cameras, the littlest ones helping to break the ice.
KERRY: We want to announce today that we have a new campaign manager; Jack Edwards is taking over everything.
WALLACE: Sure, it seemed strange. Two guys who criticized each other during the primaries now praising one another. And hugging over and over again. But from Pennsylvania to Ohio:
KERRY: Cleveland rocks.
WALLACE: To Florida, it was hard not to notice one John is helping loosen up the other. Here, Kerry talks about what they have in common.
KERRY: We both share the first name, John. John -- John was selected as "People" magazine's sexiest politician of the year.
I read "People" magazine.
WALLACE: Equally obvious, how one John makes the crowd go wild.
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: And I'll tell you one thing you can take to the bank -- when John Kerry is president of the United States, he will tell the American people the truth.
WALLACE: And so, Team Kerry-Edwards got a bounce. Four points in one poll, nine in another.
Not quite the 19 percent for Clinton-Gore in '92, or the 15 percent for Gore-Lieberman, but ironically matching the 9 percent for Bush-Cheney in 2000.
Will it last? Who knows? After all, this is the honeymoon.
(END VIDEOTAPE)
WALLACE: Because now the candidates will start facing some questions, such as did Senator Kerry pick the person to help him win, or, Heidi, the person who is best suited for the presidency.
COLLINS: Yes, and interesting those poll numbers that show the same sort of bounce between when Edwards was announced and when Cheney was announced, because you see the other polls that show such a much more favorable reaction to Edwards over Cheney. So, the effect seems...
WALLACE: Well, you know that -- when you look at that a much bigger, more dramatic effect for Clinton-Gore and Gore-Lieberman, but still a significant, somewhat of a significant bounce.
But you can just pick up a little bit the energy out there. You do talk to people and you are hearing more people say you know what, I was sort of not really so excited about John Kerry but now he has John Edwards I'm a little bit more excited about the ticket.
COLLINS: Interesting. I guess we'll have to wait to see.
WALLACE: We will, November 2, exactly.
COLLINS: Kelly Wallace, thanks so much.
WALLACE: Sure.
COLLINS: Bill.
HEMMER: Heidi, thanks. Thirteen past the hour.
About two hours away from now, we expect the World Court to reportedly issue a strongly worded ruling that condemns Israel's West Bank barrier.
Alessio Vinci at the checkpoint in the outskirts of Ramallah, live with us now.
Alessio, good afternoon there.
ALESSIO VINCI, CNN CORRESPONDENT: And good morning to you, Bill.
You are looking at a live picture of a portion of that controversial barrier in the refugee camp of Cankelia (ph) just outside -- sorry -- of -- just outside the city of Ramallah. I should correct myself. Just outside the city of Ramallah. This is a portion of the controversial barrier. I must tell you that this is now how the entire barrier looks like; this is just a small portion of it. As you can see, concrete slabs the Israeli defense officials say are necessary to prevent Palestinian snipers on that side of the fence to shoot into Israel proper.
But I must tell you, the vast majority of this barrier is actually been made of chain-length fence and barbed wire, especially in open land with some ditches built all around it, you know, to prevent cars from driving through.
So this is just how less than 5 percent of the entire 186 kilometers of 115 miles built so far have been built on -- so far -- now, we understand from some leaked documents that the court, the International Court of Justice in The Hague will issue later on its opinion that Israel is expected to -- is demanding Israel to bring down this barrier, to dismantle this barrier and to pay compensation to the Palestinians who have been effected by the construction so far.
Saying basically that, first of all, it does not believe in the route where this barrier has been built primarily in some areas inside the West Bank is not addressing the security concerns that Israel is actually saying it does.
And at the same time, the court is expected to say that this barrier -- the way things have been built it is actually going against the international military law because it is dividing some Palestinian civilians from their fields, from their places of work, from the places where they have to go every day.
And, therefore, the International Court of Justice is expected to come out with the strong ruling later today asking -- saying that this barrier should be dismantled.
Back to you.
HEMMER: Alessio Vinci, thanks. Again two hours away from the official word.
We'll wait for it then -- Heidi.
COLLINS: Fifteen minutes past the hour now and time for a look at some of today's other news with Fredricka Whitfield. Fredricka starting with Iraq today.
FREDRICKA WHITFIELD, CNN ANCHOR: Good morning to you.
U.S. military officials reportedly saying the insurgency in Iraq is much larger than previously thought.
According to sources cited by the Associated Press, there could be as many as 20,000 fighters in Iraq, far more than earlier estimates of 5,000. Sources also telling the A.P. that the leaders are well armed Sunni Muslims angry about losing power.
Here in the U.S., a warning that the threat of terrorism is at its highest since the September 11 terror attacks.
Homeland Security Secretary Tom Ridge announcing yesterday that al Qaeda is planning a large-scale attack on American soil before the November elections, but adding that there are no new specific threats. So far there are no plans to raise the country's threat level.
Secretary Tom Ridge will be a guest on AMERICAN MORNING in just about 15 minutes from now.
A Japanese woman kidnapped by North Korea decades ago has been reunited with her daughters and husband. Charles Jenkins and his family reunited in Indonesia. Jenkins, a U.S. Army sergeant is accused of deserting the Army and faces extradition to the U.S. The family is meeting in Jakarta because Indonesia does not have an extradition treaty with the U.S.
Lawyers for Michael Jackson are back in court today. Jackson's attorneys are set to argue a motion filed earlier this week requesting that the grand jury indictment against the pop star be thrown out. The motion claims that the prosecution sabotaged juror's abilities to perform their duties.
Jackson is not expected to attend today's hearings.
And get ready to meet a new multi-millionaire. The winner of the largest Mega Millions jackpot in history was chosen last week, but the person's identity has been kept under wraps.
Well, today whoever it is will get a ceremonial check for $294 million at a Massachusetts lottery office. Even after taxes, that's a whole lot of millions.
HEMMER: It sure is.
WHITFIELD: Back to you guys.
HEMMER: We'll know eventually, though. That secret will not stay secret for long.
Thanks, Fredricka. Talk to you again in about half an hour.
From California, Education Secretary Richard Riordan is in hot water for a comment he made to a 6-year-old girl.
It came during a summer reading event when the girl explained the meaning of her name. Her name is Isis. Listen here.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: My name (UNINTELLIGIBLE) Isis. Did you know that my name actually means, in Egyptian, "goddess?"
RICHARD RIORDAN, CALIFORNIA EDUCATION SECRETARY: It means stupid, dirty, girl.
(END VIDEO CLIP) HEMMER: There's the problem. The head of California's NAACP wants Riordan to step down.
The governor, Arnold Schwarzenegger, says that statement is unacceptable in any context. The education secretary apologized. The little girl's mother has accepted that apology.
Stupid, dirty girl. Did not fly for a lot of folks.
COLLINS: All right. Well, at least the mom forgave him.
Time now for the "Cafferty File" -- Jack's here. Good morning.
CAFFERTY: Good morning. Very serious medical story. Researchers are saying that cosmetic surgeons may soon be able to do face transplants.
It's a procedure -- serious stuff here -- procedure that would be used on the faces of people who have been disfigured, and would not be used for cosmetic reasons.
Before it happens, doctors say that people have to think through the psychological and social effects of face transplants.
But, it's Friday, and there wasn't a lot else going on, so we're going to take this little item and turn it into something it was never meant to be.
And we think it will make for a meaningful discussion.
If you could get a face transplant, whose face would you like to have?
(LAUGHTER)
am@cnn.com and just knock your little brains out.
HEMMER: You want to start the list for us? Come on.
CAFFERTY: Oh, no. No. I'm happy with the one I've got. Thank you. Such as it is.
HEMMER: Thank you, Jack.
CAFFERTY: I've lived with it for a long time.
COLLINS: I've no answer. I'm stumped. That sort of took -- so many choices.
CAFFERTY: The tough questions that we pose here, you know. I meant to be real easy to answer.
COLLINS: All right, Jack. Here's some of those answers. Thank you.
In South Florida, stubborn brush fires are still burning. The flames are devouring trees and grass there and sending plumes of smoke and hot embers into the air. Winds are calmer this morning, though, and that means less smoke blowing toward Miami.
On Wednesday thick smoke from the brush fires had blanketed parts of that city. So far no reports of injuries and no buildings have burned.
(WEATHER REPORT)
HEMMER: In a moment here, much more on the warning that al Qaeda may be planning an attack here in this country. In a moment live with the Homeland Security Secretary Tom Ridge.
What good is the warning if the specifics are not given as well among the many questions in a moment.
COLLINS: Also ahead, former Enron chief Ken Lay accused of lying to the public takes his case directly to the public. Jeffrey Toobin and Andy Serwer are going to stop by and talk about what an unusual move that might have been.
HEMMER: Also have you seen this one? When journalists attack. The fists fly in D.C. No kidding.
COLLINS: Sounds like a documentary.
HEMMER: I'm telling you. Back in a moment here on AMERICAN MORNING.
(COMMERCIAL BREAK)
COLLINS: To hear Ken Lay tell it, he's not yet begun to fight. The former Enron chief is ready to go to trial and soon to prove his innocence.
Lay pleaded not guilty yesterday to all criminal charges in the criminal indictment related to the company's collapse under a mountain of concealed debt.
Joining us this morning to talk about Lay's aggressive declaration of innocence, Jeffrey Toobin, Andy Serwer, thanks guys for being here.
Jeffrey, starting with you -- this was a guy who refused to talk to a congressional panel about this entire situation but now he's gone to the public. Could he just not contain himself anymore?
JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I have never seen a criminal defendant talk as much about the substance of the charges than Ken Lay did yesterday. And it is worth pointing out -- much as he is a reviled public figure this guy has some real defenses.
This is an unusual case; there are some really complicated charges there. The accounting treatment of good will -- try explaining that to a jury.
He wants a fast trial. I don't know what the result will be but...
COLLINS: Where was his lawyer?
TOOBIN: Well, you know, I think he has a different strategy. He doesn't want to act like a Mafioso with his raincoat over his head. He's says I'm answering questions; here are my answers, see if you believe them.
COLLINS: Interesting. All right, Andy, do you think people are going to buy it, that he was all the way at the top of this company and yet really didn't know exactly what was going on.
ANDY SERWER, "FORTUNE" MAGAZINE: I don't think people will buy it at all. And, Jeff, I believe in due process almost as much as you do, but to be a man on the moon here -- I mean -- you're looking down at the situation.
Shareholders lost so much money and these guys at the top ended up with all the money. What's wrong with this picture?
Taking a page from Jack Cafferty's book here, I've got an e-mail from William in Jackson, Mississippi, who talks about his uncle's 16,000 shares of Enron being worthless and these guys have all the money.
He was a World War II veteran, served with General Patton and came home to teach high school. Will there ever be real justice if the sleaze bags aren't convicted?
And -- you know -- I don't know. I mean, there's a lot of detail here, Jeff, but he got the money. We're broke, and how is it possible that he could get off?
TOOBIN: Well, I mean, just to go with the facts of the case. You know, Ken Lay did not sell much stock. He bought a lot of stock during this period and you know criminal cases are about evidence. Where is the document that says Ken Lay knew that -- that...
SERWER: But Jeff, Ken Lay was the chairman of the company.
TOOBIN: you know, but that's not how criminal cases work. Criminal cases don't work he must have known. He should have known.
The issue is where is the document that says Ken Lay knew that Andy Fastow was setting up these partnerships to drain the company. Where's the witness who will say that?
I mean, the witness may be there. But he's not going to get convicted without that witness.
COLLINS: And if you listen to his comments yesterday, he did say that, hey, I had these senior officials in charge of my company. I entrusted them, I thought I knew them and I didn't know.
SERWER: But he was the chairman of the company, he was drawing a salary. What were his responsibilities then if he didn't know what his CEO and CFO were doing? I mean, what was he doing then?
TOOBIN: We shall see in the trial.
SERWER: That's right.
COLLINS: Indeed, we will. We'll all be watching. All right, Andy and Jeff thanks so much this morning -- Bill.
SERWER: OK.
HEMMER: Heidi in a moment here we'll talk live in D.C. with Homeland Security Secretary Tom Ridge, standing by. We'll talk about the terror warnings from yesterday.
Also ask him a number of questions, including why the terror alert level is not being changed now if this threat is so serious and credible. A lot to talk about after the break here on AMERICAN MORNING.
(COMMERCIAL BREAK)
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Aired July 9, 2004 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
Authorities say the terror threat against the U.S. is at its highest level since 9/11 and the master planner may well be Osama bin Laden.
Senator John Kerry in his first interview since picking John Edwards to be his running mate only on CNN.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: This is a man who represents the values of our country, and this is a man strong enough and skilled enough to lead it.
(END VIDEO CLIP)
HEMMER: Here we are three days later. Is John Edwards giving John Kerry the bounce in the polls he's looking for?
And the number of coalition dead in Iraq now at 1,000. Did the Pentagon misunderstand the enemy from... (AUDIO GAP)
ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
HEMMER: Good morning everyone. It's Friday. Good to have you along with us. Soledad is out, Heidi Collins is in. Good morning to you.
HEIDI COLLINS, CNN ANCHOR: Barely.
(LAUGHTER)
HEMMER: Hang in there. Almost there. A big show this morning.
A lot of attention focused on the latest terrorist warnings. There are differences, too, between what's being said in public and what's being said in private.
Off the record, one lawmaker calls it the most worrisome situation since 9/11.
We'll talk about the threats. Saxby Chambliss, a member of the Senate Intelligence Committee -- also here from Homeland Security, Secretary Tom Ridge. Senator standing by in Washington. In a few moments we'll get to him.
COLLINS: Also, Israel apparently getting a harsh rebuke from the international community today.
We'll get an update from the -- from Ramallah, that is -- on the reports -- the court has deemed the much-discussed barrier in the West Bank is illegal. We'll look at the significance of that, as well.
HEMMER: Also this hour, Ken Lay -- can he beat the charges against him stemming from the Enron collapse? We'll talk to Jeff Toobin and Andy Serwer about that.
His picture is on the front page of just about every newspaper you pick up this morning from yesterday.
JACK CAFFERTY, CNN ANCHOR: Nice bracelets.
COLLINS: Yes.
CAFFERTY: The -- because it's Friday, we're going to take an absolutely serious medical issue and reduce it to the point of being trivial, and then use it as fodder for the e-mail "Question of the Day" for the next three hours.
That would be the plan. We'll explain...
COLLINS: I like knowing the plan.
CAFFERTY: We'll explain further in a few moments.
HEMMER: Thank you, Jack.
COLLINS: Very good.
HEMMER: Let's start with a senior intelligence official now telling CNN that terrorist plans to attack the U.S. before the elections in November are being directed by Osama bin Laden and his top lieutenants.
Homeland Security Secretary Tom Ridge says, though, that the U.S. has no specific knowledge about when, where or how those attacks may take place. He also says the nation's terror alert level is not being raised from its current yellow or elevated status.
Secretary Ridge calls the information collected in recent months sobering.
(BEGIN VIDEO CLIP)
TOM RIDGE, HOMELAND SECURITY SECRETARY: We are basically laying out before the general public the kind of information that we've received and its not us -- these are not conjectures or mythical statements we are making; these are pieces of information that we could raise comfortably to sources that we deem to be credible.
(END VIDEO CLIP) HEMMER: High profile summer events like the political conventions getting extra attention today. Plans are in place now for road and rail closures in Boston and New York City, where access to the convention sites will be strictly limited.
The threat of an al Qaeda attack comes at a time when the CIA is reeling. A Senate Intelligence Committee report due out today blasted the agency for its performance leading up to the war in Iraq.
Georgia Senator Saxby Chambliss, a member of that panel, live in D.C. with us this morning. Welcome back, Senator. Good morning.
SEN. SAXBY CHAMBLISS (R), GEORGIA: Good morning, Bill.
HEMMER: Before we talk about the report due out later today, what can you add, based on your discussions yesterday with Secretary Ridge, the American people need to know about this latest threat from al Qaeda?
CHAMBLISS: Well, Bill, we've seen over the last several weeks, and really the last several months, lot of information coming through the intelligence channels about the al Qaeda organization wanting to either influence or certainly disrupt the elections this fall in the United States very similar to what they did in Spain last spring.
And the more -- the closer we get to the election, the closer we get to high-profile events like the conventions, the more information we're picking up on.
So, that's why you're seeing Secretary Ridge and Director Mueller and other folks within the intel committee really coming forward and saying hey, this is serious, it could happen at any point in time, there are people we know who are here that are al Qaeda sleeper cells that this may be the event that they've been planning for years and now is the time they're going to execute it.
HEMMER: Here's the conflict, Senator. We've heard these warnings in the past. What is different this time that makes you believe it's more credible?
CHAMBLISS: Well, any time you hear a lot of conversation in the terrorist world about an event that might occur, it gives you real cause to be concerned, and I think that's the main difference.
We've had a lot more conversation. Plus, the information that we are receiving comes from very, very credible sources, as Secretary Ridge said yesterday.
HEMMER: Senator, let's talk about the report due out today from your Senate Intelligence Committee. You say wholesale mistakes were made by CIA analysts. What kind of mistakes, Senator?
CHAMBLISS: This report is going to be very specific, Bill, in pointing out some areas where analysts at CIA did work and gathered intelligence, and they came to conclusions, and we simply were able to discover that those conclusions were not based on sound facts. And as a result thereof, the information that was given by analysts to the director of the CIA, who then in turn passed that information on to the president, as well as to Congress -- the information simply wasn't correct. And we're going to be very specific in this report about certain particular incidents where that took place.
HEMMER: Senator, three days ago, your colleague, Carl Levin, the Democratic senator from Michigan, was on our program. He said there were two issues in this report: one that's very critical of George Tenet and the other side that's critical of how the White House used the information that CIA provided.
I believe you have been quoted as saying, though, that this report absolves both men, President Bush and George Tenet. Score these two comparisons together for us.
CHAMBLISS: Well, I'm not sure exactly what Senator Levin is talking about, but let me just say this.
Director Tenet has done a good job at the CIA. It is the most difficult job in Washington, D.C. outside of being president of the United States here, particularly for the last three years.
Director Tenet had to rely on the people who were providing him the information, and the information that was given to him simply was wrong.
Now, should he bear the responsibility? He's the head of that organization and he's already said if the organization made mistakes then they're my mistakes and my responsibility.
And that's what a good leader should do and what he has done.
With respect to the White House, the information that came out in the national intelligence estimate has been already disseminated in the public. We know now that the information contained in there was wrong. That's the exact information that was transmitted by the CIA through George Tenet to the president.
Now, the president does not have an obligation to go behind the information given to him to determine what the facts are that allow the analysts to arrive at that conclusion, so you can't blame the White House for something that was done by the agency that they rely on.
But again, we're in this report, we're going to detail those specific incidents, but I think it's important, too, Bill that this report is just the first step and we're not going to look backwards -- we're going to look forwards. Mistakes were made leading up to September 11. Mistakes were made leading up to the Iraqi conflict.
We've now got to figure out a way that we ensure that we fix those mistakes and make the reforms in the intelligence community that are necessary to made so that we can ensure that this doesn't happen again. HEMMER: We'll look for that report later today. On a personal note, you announced this week you're being treated for prostate cancer. How's your health, Senator?
CHAMBLISS: Well, I feel fine. It's something that came up during a routine physical exam that I have every year, and it just amplifies the fact that every male 45 years or older needs to have that PSA checked every year, and needs to have that digital exam every year, because this is a serious disease.
But it's a disease that can be cured if it's caught early. Mine was caught early and I'm very thankful of that, and I just hope every male in America follows the same route I did.
HEMMER: Our best to you and your health, Senator. Thanks.
All right. That report due again due out later today. 10:30 a.m. Eastern time.
Certainly coverage all day when it comes out. Also, the Homeland Security Secretary Tom Ridge also our guest today. We'll talk to him at 7:30 Eastern time, at about 22 minutes from now -- Heidi.
COLLINS: Last night on "LARRY KING LIVE," John Kerry gave his first sit-down interview since choosing John Edwards as his running mate.
Senator Kerry says he and Edwards can manage a far more effective war on terror, and he criticized President Bush for rushing into war in Iraq.
(BEGIN VIDEO CLIP, "LARRY KING LIVE")
KERRY: From day one, day one, way before we went in, I urged this president to do what was necessary diplomatically to build the international support that would have been at our side.
From day one I urged the president to exhaust the remedies available to us, so that we didn't rush to war. I wanted this president to give meaning to the words "going to war as a last resort."
I don't believe he did, Larry. It's just very simple. He didn't. And the facts show it.
We're paying an unbelievable price in the treasury of our young, and in the costs in billions of dollars to the American people, because this president miscalculated.
(END VIDEO CLIP)
COLLINS: It wasn't all serious last night, though, as you can see here. The senator also had time to jam at a celebrity concert at Radio City Music Hall in New York City. He was pretty good.
In fact, the star-studded fund raising concert for the new Democratic ticket last night at New York's Radio City Music Hall -- a little place right across the street here -- they raised more than $7 million.
But, how much help is John Edwards to John Kerry's race for the White House? Kelly Wallace is here now with more on that. Is that the -- an easy question to answer?
KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Well, you know, much has been made of how the Kerry campaign has this carefully choreographed roll-out to introduce the Democratic ticket to the American people.
One aide we were talking to said so far it's gone off without a hitch, and you can possibly say it might have even gone off even better than the campaign staff could have ever predicted.
(BEGIN VIDEOTAPE)
WALLACE (voice-over): We learned John Kerry is very good at keeping a secret.
KERRY: But I can choose only one running mate, and this morning I have done so.
WALLACE: And we learned Team Kerry knows a thing or two about gearing up publicity, making us wait a full day for the first photo op, which most television networks carried live.
It did feel a bit like a wedding photo. Two families thrown together for the cameras, the littlest ones helping to break the ice.
KERRY: We want to announce today that we have a new campaign manager; Jack Edwards is taking over everything.
WALLACE: Sure, it seemed strange. Two guys who criticized each other during the primaries now praising one another. And hugging over and over again. But from Pennsylvania to Ohio:
KERRY: Cleveland rocks.
WALLACE: To Florida, it was hard not to notice one John is helping loosen up the other. Here, Kerry talks about what they have in common.
KERRY: We both share the first name, John. John -- John was selected as "People" magazine's sexiest politician of the year.
I read "People" magazine.
WALLACE: Equally obvious, how one John makes the crowd go wild.
SEN. JOHN EDWARDS (D-NC), VICE PRESIDENTIAL CANDIDATE: And I'll tell you one thing you can take to the bank -- when John Kerry is president of the United States, he will tell the American people the truth.
WALLACE: And so, Team Kerry-Edwards got a bounce. Four points in one poll, nine in another.
Not quite the 19 percent for Clinton-Gore in '92, or the 15 percent for Gore-Lieberman, but ironically matching the 9 percent for Bush-Cheney in 2000.
Will it last? Who knows? After all, this is the honeymoon.
(END VIDEOTAPE)
WALLACE: Because now the candidates will start facing some questions, such as did Senator Kerry pick the person to help him win, or, Heidi, the person who is best suited for the presidency.
COLLINS: Yes, and interesting those poll numbers that show the same sort of bounce between when Edwards was announced and when Cheney was announced, because you see the other polls that show such a much more favorable reaction to Edwards over Cheney. So, the effect seems...
WALLACE: Well, you know that -- when you look at that a much bigger, more dramatic effect for Clinton-Gore and Gore-Lieberman, but still a significant, somewhat of a significant bounce.
But you can just pick up a little bit the energy out there. You do talk to people and you are hearing more people say you know what, I was sort of not really so excited about John Kerry but now he has John Edwards I'm a little bit more excited about the ticket.
COLLINS: Interesting. I guess we'll have to wait to see.
WALLACE: We will, November 2, exactly.
COLLINS: Kelly Wallace, thanks so much.
WALLACE: Sure.
COLLINS: Bill.
HEMMER: Heidi, thanks. Thirteen past the hour.
About two hours away from now, we expect the World Court to reportedly issue a strongly worded ruling that condemns Israel's West Bank barrier.
Alessio Vinci at the checkpoint in the outskirts of Ramallah, live with us now.
Alessio, good afternoon there.
ALESSIO VINCI, CNN CORRESPONDENT: And good morning to you, Bill.
You are looking at a live picture of a portion of that controversial barrier in the refugee camp of Cankelia (ph) just outside -- sorry -- of -- just outside the city of Ramallah. I should correct myself. Just outside the city of Ramallah. This is a portion of the controversial barrier. I must tell you that this is now how the entire barrier looks like; this is just a small portion of it. As you can see, concrete slabs the Israeli defense officials say are necessary to prevent Palestinian snipers on that side of the fence to shoot into Israel proper.
But I must tell you, the vast majority of this barrier is actually been made of chain-length fence and barbed wire, especially in open land with some ditches built all around it, you know, to prevent cars from driving through.
So this is just how less than 5 percent of the entire 186 kilometers of 115 miles built so far have been built on -- so far -- now, we understand from some leaked documents that the court, the International Court of Justice in The Hague will issue later on its opinion that Israel is expected to -- is demanding Israel to bring down this barrier, to dismantle this barrier and to pay compensation to the Palestinians who have been effected by the construction so far.
Saying basically that, first of all, it does not believe in the route where this barrier has been built primarily in some areas inside the West Bank is not addressing the security concerns that Israel is actually saying it does.
And at the same time, the court is expected to say that this barrier -- the way things have been built it is actually going against the international military law because it is dividing some Palestinian civilians from their fields, from their places of work, from the places where they have to go every day.
And, therefore, the International Court of Justice is expected to come out with the strong ruling later today asking -- saying that this barrier should be dismantled.
Back to you.
HEMMER: Alessio Vinci, thanks. Again two hours away from the official word.
We'll wait for it then -- Heidi.
COLLINS: Fifteen minutes past the hour now and time for a look at some of today's other news with Fredricka Whitfield. Fredricka starting with Iraq today.
FREDRICKA WHITFIELD, CNN ANCHOR: Good morning to you.
U.S. military officials reportedly saying the insurgency in Iraq is much larger than previously thought.
According to sources cited by the Associated Press, there could be as many as 20,000 fighters in Iraq, far more than earlier estimates of 5,000. Sources also telling the A.P. that the leaders are well armed Sunni Muslims angry about losing power.
Here in the U.S., a warning that the threat of terrorism is at its highest since the September 11 terror attacks.
Homeland Security Secretary Tom Ridge announcing yesterday that al Qaeda is planning a large-scale attack on American soil before the November elections, but adding that there are no new specific threats. So far there are no plans to raise the country's threat level.
Secretary Tom Ridge will be a guest on AMERICAN MORNING in just about 15 minutes from now.
A Japanese woman kidnapped by North Korea decades ago has been reunited with her daughters and husband. Charles Jenkins and his family reunited in Indonesia. Jenkins, a U.S. Army sergeant is accused of deserting the Army and faces extradition to the U.S. The family is meeting in Jakarta because Indonesia does not have an extradition treaty with the U.S.
Lawyers for Michael Jackson are back in court today. Jackson's attorneys are set to argue a motion filed earlier this week requesting that the grand jury indictment against the pop star be thrown out. The motion claims that the prosecution sabotaged juror's abilities to perform their duties.
Jackson is not expected to attend today's hearings.
And get ready to meet a new multi-millionaire. The winner of the largest Mega Millions jackpot in history was chosen last week, but the person's identity has been kept under wraps.
Well, today whoever it is will get a ceremonial check for $294 million at a Massachusetts lottery office. Even after taxes, that's a whole lot of millions.
HEMMER: It sure is.
WHITFIELD: Back to you guys.
HEMMER: We'll know eventually, though. That secret will not stay secret for long.
Thanks, Fredricka. Talk to you again in about half an hour.
From California, Education Secretary Richard Riordan is in hot water for a comment he made to a 6-year-old girl.
It came during a summer reading event when the girl explained the meaning of her name. Her name is Isis. Listen here.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: My name (UNINTELLIGIBLE) Isis. Did you know that my name actually means, in Egyptian, "goddess?"
RICHARD RIORDAN, CALIFORNIA EDUCATION SECRETARY: It means stupid, dirty, girl.
(END VIDEO CLIP) HEMMER: There's the problem. The head of California's NAACP wants Riordan to step down.
The governor, Arnold Schwarzenegger, says that statement is unacceptable in any context. The education secretary apologized. The little girl's mother has accepted that apology.
Stupid, dirty girl. Did not fly for a lot of folks.
COLLINS: All right. Well, at least the mom forgave him.
Time now for the "Cafferty File" -- Jack's here. Good morning.
CAFFERTY: Good morning. Very serious medical story. Researchers are saying that cosmetic surgeons may soon be able to do face transplants.
It's a procedure -- serious stuff here -- procedure that would be used on the faces of people who have been disfigured, and would not be used for cosmetic reasons.
Before it happens, doctors say that people have to think through the psychological and social effects of face transplants.
But, it's Friday, and there wasn't a lot else going on, so we're going to take this little item and turn it into something it was never meant to be.
And we think it will make for a meaningful discussion.
If you could get a face transplant, whose face would you like to have?
(LAUGHTER)
am@cnn.com and just knock your little brains out.
HEMMER: You want to start the list for us? Come on.
CAFFERTY: Oh, no. No. I'm happy with the one I've got. Thank you. Such as it is.
HEMMER: Thank you, Jack.
CAFFERTY: I've lived with it for a long time.
COLLINS: I've no answer. I'm stumped. That sort of took -- so many choices.
CAFFERTY: The tough questions that we pose here, you know. I meant to be real easy to answer.
COLLINS: All right, Jack. Here's some of those answers. Thank you.
In South Florida, stubborn brush fires are still burning. The flames are devouring trees and grass there and sending plumes of smoke and hot embers into the air. Winds are calmer this morning, though, and that means less smoke blowing toward Miami.
On Wednesday thick smoke from the brush fires had blanketed parts of that city. So far no reports of injuries and no buildings have burned.
(WEATHER REPORT)
HEMMER: In a moment here, much more on the warning that al Qaeda may be planning an attack here in this country. In a moment live with the Homeland Security Secretary Tom Ridge.
What good is the warning if the specifics are not given as well among the many questions in a moment.
COLLINS: Also ahead, former Enron chief Ken Lay accused of lying to the public takes his case directly to the public. Jeffrey Toobin and Andy Serwer are going to stop by and talk about what an unusual move that might have been.
HEMMER: Also have you seen this one? When journalists attack. The fists fly in D.C. No kidding.
COLLINS: Sounds like a documentary.
HEMMER: I'm telling you. Back in a moment here on AMERICAN MORNING.
(COMMERCIAL BREAK)
COLLINS: To hear Ken Lay tell it, he's not yet begun to fight. The former Enron chief is ready to go to trial and soon to prove his innocence.
Lay pleaded not guilty yesterday to all criminal charges in the criminal indictment related to the company's collapse under a mountain of concealed debt.
Joining us this morning to talk about Lay's aggressive declaration of innocence, Jeffrey Toobin, Andy Serwer, thanks guys for being here.
Jeffrey, starting with you -- this was a guy who refused to talk to a congressional panel about this entire situation but now he's gone to the public. Could he just not contain himself anymore?
JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I have never seen a criminal defendant talk as much about the substance of the charges than Ken Lay did yesterday. And it is worth pointing out -- much as he is a reviled public figure this guy has some real defenses.
This is an unusual case; there are some really complicated charges there. The accounting treatment of good will -- try explaining that to a jury.
He wants a fast trial. I don't know what the result will be but...
COLLINS: Where was his lawyer?
TOOBIN: Well, you know, I think he has a different strategy. He doesn't want to act like a Mafioso with his raincoat over his head. He's says I'm answering questions; here are my answers, see if you believe them.
COLLINS: Interesting. All right, Andy, do you think people are going to buy it, that he was all the way at the top of this company and yet really didn't know exactly what was going on.
ANDY SERWER, "FORTUNE" MAGAZINE: I don't think people will buy it at all. And, Jeff, I believe in due process almost as much as you do, but to be a man on the moon here -- I mean -- you're looking down at the situation.
Shareholders lost so much money and these guys at the top ended up with all the money. What's wrong with this picture?
Taking a page from Jack Cafferty's book here, I've got an e-mail from William in Jackson, Mississippi, who talks about his uncle's 16,000 shares of Enron being worthless and these guys have all the money.
He was a World War II veteran, served with General Patton and came home to teach high school. Will there ever be real justice if the sleaze bags aren't convicted?
And -- you know -- I don't know. I mean, there's a lot of detail here, Jeff, but he got the money. We're broke, and how is it possible that he could get off?
TOOBIN: Well, I mean, just to go with the facts of the case. You know, Ken Lay did not sell much stock. He bought a lot of stock during this period and you know criminal cases are about evidence. Where is the document that says Ken Lay knew that -- that...
SERWER: But Jeff, Ken Lay was the chairman of the company.
TOOBIN: you know, but that's not how criminal cases work. Criminal cases don't work he must have known. He should have known.
The issue is where is the document that says Ken Lay knew that Andy Fastow was setting up these partnerships to drain the company. Where's the witness who will say that?
I mean, the witness may be there. But he's not going to get convicted without that witness.
COLLINS: And if you listen to his comments yesterday, he did say that, hey, I had these senior officials in charge of my company. I entrusted them, I thought I knew them and I didn't know.
SERWER: But he was the chairman of the company, he was drawing a salary. What were his responsibilities then if he didn't know what his CEO and CFO were doing? I mean, what was he doing then?
TOOBIN: We shall see in the trial.
SERWER: That's right.
COLLINS: Indeed, we will. We'll all be watching. All right, Andy and Jeff thanks so much this morning -- Bill.
SERWER: OK.
HEMMER: Heidi in a moment here we'll talk live in D.C. with Homeland Security Secretary Tom Ridge, standing by. We'll talk about the terror warnings from yesterday.
Also ask him a number of questions, including why the terror alert level is not being changed now if this threat is so serious and credible. A lot to talk about after the break here on AMERICAN MORNING.
(COMMERCIAL BREAK)
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