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American Morning

Terror Warning; Kerry-Edwards Ticket; 'Extra Effort'

Aired July 09, 2004 - 9:00   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. Fears raise about a new terrorist plot, possibly with Osama bin Laden pulling the strings. Why then is the national alert level still at yellow?
John Kerry, his first interview since choosing John Edwards as his running mate.

(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: He's talking only with Larry King. And now the decision is made. Is Edwards giving Kerry the bounce he wants and needs?

California's secretary of education in a bit of hot water after making a really strange comment to a 6-year-old girl. We'll have it for you this hour on AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: Good morning. 9:00 here in New York. What a day we have today. High of 82, blue skies. Let's get out there, huh?

Soledad continues her time off. Heidi Collins here.

Good morning to you.

HEIDI COLLINS, CNN ANCHOR: I'll be going to bed to enjoy the next day.

HEMMER: That you will.

In a moment here, the new terror warnings making headlines today. What do officials know? Do the warnings help the public or not? We'll have an interview with Homeland Secretary Tom Ridge in a matter of moments, also talk to a police chief in a major American city, John Timoney in Miami, about what he is hearing and doing now in his town.

COLLINS: Also, high anxiety among U.S. Olympic hopefuls as the Anti-Doping Agency investigates possible steroid use. Which high- profile athletes could be losing a spot at the games? And how will this affect the U.S. chances for gold this summer? We're going to look at that.

HEMMER: Also, the mystery surrounding Marine Corporal Wassef Hussein, talking about that with retired Air Force General Don Shepperd, find out if the general thinks the circumstances are suspicious or not. There are some believe it could have been a hoax. We'll try and get to the bottom of it in a matter of moments here.

COLLINS: In the meantime, hi, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning, Heidi.

Serious question. Doctors are doing research on one day being able to do face transplants for people who are, for example, badly disfigured in an accident. Silly application of a serious medical story, if you could get a face transplant, whose face would you like to have for the rest of your life? Am@cnn.com

HEMMER: Good deal. Thank you, Jack.

Homeland Security Secretary Tom Ridge says there is universal acceptance among analysts about the current terrorist threat to the U.S. Intelligence indicates that al Qaeda might be planning an attack in this country before the election, November 2. Earlier this morning on AMERICAN MORNING here, I talked to Secretary Ridge, asking him what has changed recently that warranted going public yesterday.

(BEGIN VIDEOTAPE)

TOM RIDGE, HOMELAND SECURITY SECRETARY: The intelligence picture can change on a regular basis. It is a dynamic process. I mean, in every single day, the intelligence community, whether it's the CIA, the FBI, DOD, or allies overseas, take a look at the information, and either add or subtract.

But again, it's a dynamic picture. And the foundation for yesterday's announcement was the universal acceptance of the credibility of the sources within the intelligence community, the continued speculation.

I mean there's Web sites and other reporting and anticipation in the -- in the conversations, the Web sites and other reporting of al Qaeda, the fact that they talk about a timeframe. That's not very -- very usual to disrupt the democrat process. And again, the take- downs, where we arrested not only the people, but they had the capacity to conduct the attack, that's a picture. And every single day, working with not only our allies around the world, but domestic agencies, we're trying to get more and more information to make that picture much clearer today, give us more specific information we can act on.

HEMMER: Help me understand the process. Help me understand what you're dealing with down there in Washington, why you go public with a full-blown press conference, but yet the terror threat level does not change.

RIDGE: Well, the terrorist threat level doesn't need to change for us, one, to give a sobering statement to America about the risk and about what we know. The terrorist threat level doesn't have to change in order for us to continue to build in preventive and additional security measures.

One of the reasons that we are cautious about taking up the national threat level, it is very, very labor intensive. You cannot sustain it indefinitely. It is physically and emotionally very, very taxing.

We may raise it. There's nothing to suggest today that we would do it. But we may raise it in the future. But we do it on a selective basis. But I think it's even more important to know that we don't have to raise the threat level to work with state homeland security advisers and local chiefs of police, the FBI, the joint terrorism task forces, and everybody else to go out and look for more information, at the same time, harden America against the possibility of an attack.

HEMMER: And take the last point. I think this is very critical here. When viewers listened to you talk yesterday, and again today, what do they look out for?

RIDGE: Well, first of all, as I mentioned yesterday, they ought to be assured that the law enforcement community and the security professionals every single day go about their job with the same kind of intensity and aggressiveness. That has been sustained for two-plus years since September 11.

What we say to citizens, one, you need to know that your -- your professionals are hard at work. But there are a couple of things you can do. Your common sense and your eyes and ears could potentially help us stop a terrorist attack.

If there is suspicious activity, you see something that's out of the ordinary, call the local law enforcement agency, call your local sheriff. There's not a week that doesn't go by that we don't have a citizen noticing something that's unusual that leads to an investigation.

And if -- and if you had the time, we encourage people to go to the Web site, ready.gov. There are things we would like you to do for your family just to be prepared. But more importantly than anything else, know that your security professionals are hard at work, not just at the federal government, around the country, down to the local community.

(END VIDEOTAPE)

HEMMER: Tom Ridge from earlier.

How is law enforcement reacting to this latest threat? One of the biggest cities in America is Miami, Florida. John Timoney is a police chief there.

Chief, good morning to you.

JOHN TIMONEY, MIAMI POLICE CHIEF: Good morning, Bill.

HEMMER: What changes for your community now?

TIMONEY: Nothing really, because there was nothing new. We had the information over the last two months. I guess this is just a reiteration or a confirmation.

My sense is, listening to Tom Ridge yesterday, that they've received additional confirming information as a result of the arrests in Italy, Jordan and Great Britain. And so he's going out just, again, reminding people.

He's kind of, though, in a damned if he does, damned if he doesn't situation. You know, he comes out with the information. He's accused of unnecessarily alarming people. If he doesn't raise the color, he's saying, why didn't you raise the color?

I think all of this, over the last year and a half, has been a learning experience for Homeland Security. Early on, he was criticized for raising the colors too often and too fast. I think there's a recognition or a growing awareness that when you raise the color, a whole host of other things kick in that cost money, resources, manpower, a whole host of things.

And so they're -- they're pretty careful now over the last six months in regards to raising the color level, because they understand the impact it will have on local communities. And so, for example, in New York it's $5 million.

HEMMER: If I could stop you just for a second. You're talking about the cost there, and I know where you're going with this. On both sides, Republicans and Democrats all say that they will spare no cost when it comes to keeping America safe.

TIMONEY: Yes, right.

HEMMER: How then do you mix the two and make them -- well -- if you're saying it's costing money, OK, and if we're hearing out of D.C. every day that they will not spare any cost, how do you mix the two?

TIMONEY: Well, there's another important thing, which was evident to me right after 9/11. As you know, I was the police commissioner of Philadelphia then. When we were under the highest state of alert, where we had officers out at locations 12 hours a day, it became clear after two or three weeks, we couldn't sustain this going forward.

Even if we had all the money in the world, that there's a burnout rate, there's a boredom rate. And the biggest enemy is -- is, after a while, two or three weeks of this sustained activity, of people becoming complacent. And so while I hear other chiefs once in a while complaining, I don't complain about these occasional warnings or the elevation of the color, because it reminds us there's an enemy out there.

We know for a fact there are some people already in the country that are planning to do harm to this country. And so it's a good reminder. But I don't think you can sustain a level of color orange over the long term more than two or three weeks.

HEMMER: As we wrap this up, Jane Harman, congresswoman out of California, she said yesterday -- I'm quoting -- "Warning fatigue" -- "Warning fatigue is a real worry." But what I hear you saying is that this is just a reminder out of D.C.

TIMONEY: Exactly. And I welcome reminders like that. Clearly, it's not the same old information. Clearly, information has come in, in the last two or three weeks.

Tom Ridge is not going to go into it. It probably isn't anymore specific. But regards to the time, he's getting confirmation about information we already have coming from a variety of sources that have credibility.

HEMMER: John Timoney is the police chief in Miami. Good to talk to you as always. Thank you, Chief.

TIMONEY: Thanks, Bill.

HEMMER: About an hour from now, the Senate Intelligence Committee releases a critical report of the CIA's work prior to the war in Iraq. Sources telling CNN, among other charges today, the report says the agency did not correctly investigate claims about Iraq's alleged nuclear and biological programs. Earlier, I talked with the intelligence committee member, Republican Senator Saxby Chambliss about that.

(BEGIN VIDEO CLIP)

SEN. SAXBY CHAMBLISS (R), GEORGIA: 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.

(END VIDEO CLIP)

HEMMER: Senator Chambliss earlier today. Democrats not happy that the report does not cover possible misuse of intel before the report. That will be covered in another report which likely will not come out until after the election on November 2 -- Heidi.

COLLINS: In our campaign countdown, as of today, there are 116 days left until the November 2 presidential election. President Bush just moments ago left for Pennsylvania, where he is making several campaign stops in that battleground state. About to get on a plane, go up those steps with daughter, Jenna.

The President will make stops at Kutztown University in the town of Lancaster, and in York. First lady Laura Bush attends a fund- raising luncheon in Boston, Massachusetts. Democrats John Kerry and John Edwards also on a campaign swing, a four-day one. This morning, they're attending breakfast receptions in New York. Last night, in his first sit-down interview since picking Edwards as his running mate, Kerry spoke with Larry king about making that choice.

(BEGIN VIDEO CLIP)

KERRY: I believe what's important is that I've picked somebody with the character, with the judgment, with the values to be able to take over as President and lead this nation if something were to happen to me. I know from watching John Edwards on the campaign trail, from looking him in the eye as close as I am to you, and debating with him, and talking things through with him, from watching him in the Senate and watching him work, from looking at his lifetime of battles, 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)

COLLINS: Kerry also had fun at a celebrity concert at Radio City Music Hall last night in New York. Raised more than $7 million playing that guitar. But I don't think it's real (ph) music or not.

But anyway, how much help has John Edwards been so far to John Kerry's race for the White House? We're going to talk with Kelly Wallace about that.

So, what do you think?

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Well, Kerry's advisers have very big smiles on their faces, Heidi, because they think John Edwards can go anywhere around the country and help John Kerry, especially small town USA. And they also think their carefully choreographed rollout is going exactly according to plan.

(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 ginning 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 seems 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 1992, 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: And, of course, there are those unscripted moments. One last night, Heidi. Whoopi Goldberg kept referring to John Edwards as "kid." She said he looks 18 years old. Well, then John Kerry got up there and said, "Whoopi, I chose a man."

COLLINS: I see. OK.

Quickly for you, as we see the two of them together in all these different photo opportunities and fund-raisers like this, is there a chance now that after they've rolled out, so that John Kerry is not overshadowed by John Edwards, which we've heard a little bit of concern about that, that pretty soon now John Edwards will go away, if you will, for -- you know, kind of in the background more?

WALLACE: Well, what they're planning to do is have him go out on his own, starting as early as Wednesday of next week, because they think there are places he can go that John Kerry can't, rural America, small town USA. He talks about his small town roots.

So they think that will win, get more bang for your buck by sending him somewhere and sending John Kerry somewhere else. But Heidi, they also seem to think that John Kerry is doing a little bit better on the trail with John Edwards by his side.

COLLINS: Yes. He was playing a guitar.

WALLACE: Yes, strutting his stuff. So they might -- we might see the two together more often than we thought.

COLLINS: All right. Kelly Wallace, thanks so much for that. WALLACE: Sure.

COLLINS: Bill?

HEMMER: All right, Heidi. Almost 15 minutes past the hour. Fredricka Whitfield with us today at the CNN Center.

Good morning, Fredricka.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello again to you.

HEMMER: Rest of the news. Good morning to you as well.

WHITFIELD: Well, thanks a lot.

A status change for U.S. Marine Corporal Wassef Ali Hassoun. CNN has just learned about 10 minutes ago that Hassoun's official status has now been changed from captured to return to military control. The marine, who vanished last month, was back in U.S. hands at the U.S. embassy in Beirut, Lebanon. Officials say he is now en route to the U.S. military base in Germany.

U.S. military officials reportedly saying the insurgency in Iraq is much larger than previously thought. Sources also telling The Associated Press that the leaders are well armed Sunni Muslims, angry about losing power in Iraq.

President Bush's military records have reportedly been destroyed, according to "The New York Times." Payroll records of numerous service members were reportedly ruined by mistake during a project to salvage deteriorating microfilm. The records could have helped establish the president's whereabouts during his disputed service in the Texas Air National Guard more than 30 years ago.

The Senate is taking on the issue of same-sex marriage. Lawmakers are beginning debate today on a constitutional amendment that would spell out marriage as a union between a man and a woman. The amendment would prevent courts from ruling gay marriage as legal.

And a warning about SUVs. Transportation safety officials reportedly blaming improperly installed oil filters for more than two dozen Honda SUV fires. "The Washington Post" reporting that at least 27 Honda CRVs caught fire shortly after having their first oil changes. The newspaper cites records provided to the government by Honda. There were no reports of injuries in those fires -- Bill.

HEMMER: All right, Fredricka. Thanks for that.

California's education secretary, Richard Riordan, the former mayor in L.A., in fact, under fire for a strange comment he made to a 6-year-old girl. It came during a summer reading event on Wednesday. The little girl is named Isis. She was trying to explain the meaning of her name.

(BEGIN VIDEO CLIP)

RICHARD RIORDAN, EDUCATION SECRETARY, CALIFORNIA: And Erica?

UNIDENTIFIED FEMALE: Did you know that my name actually means an Egyptian goddess?

RIORDAN: It means stupid dirty girl.

UNIDENTIFIED FEMALE: No!

(LAUGHTER)

(END VIDEO CLIP)

HEMMER: A few hoots after that one. Ahead of the California NAACP wants Riordan to step down. The governor, Arnold Schwarzenegger, said it's unacceptable. He has not asked Riordan to resign, though. Once L.A.'s mayor, he's apologized -- the mayor has -- and the girl's mother has accepted that apology.

Yow!

COLLINS: The little girl apparently -- the mother said that she didn't take it very seriously. She knew he was kidding.

HEMMER: Stupid dirty girl.

COLLINS: OK.

Meanwhile, we're going to check in with Jack now and get to more interesting...

CAFFERTY: The guy's a moron and shouldn't draw another dime in salary from the taxpayers in the state of California. Get that walking barbell that's in the governor's mansion to fire his butt. That's what ought to happen. I almost hurt myself there.

Don't touch me.

(CROSSTALK)

CAFFERTY: Researchers say cosmetic surgeons may soon be attempting face transplants. The procedure would be used on folks who are disfigured. It's a serious story, except when we got a hold of it and we decided to have fun with it. So we're asking today, on Friday, if you could get a face transplant, whose would you want?

Bob in New Mexico says, "I want my own. I've earned the wrinkles and I wear them as a badge of honor. I remember the good times and the bad times that caused them."

Dolly up there in Norwalk, "A better question today would be this: do you think homeland security's trying to scare us to take attention off Kerry picking Edwards as his running mate? Can you raise the intelligence level of your questions? Shame on you!"

Dolly up there in Norwalk don't like the question.

David in Lawton, Oklahoma, "My fear would be expecting to look like Hemmer, end up looking like Michael Jackson."

And Ian, in Providence, Rhode Island, "Give me Hemmer's face for job interviews, Matt Damon's for hitting the bars, and Jack Cafferty's for scaring the dogs out from under my house."

HEMMER: Yeah! How about them apples?

CAFFERTY: That will work.

HEMMER: Yes, it will.

CAFFERTY: That will work.

HEMMER: Yes. We know, Jack.

COLLINS: We're going to check on the weather now.

CAFFERTY: That's twice.

COLLINS: Chad Myers at the CNN Center standing by to bail us out yet again.

Hey, Chad.

(WEATHER REPORT)

COLLINS: All right, Chad. Thanks so much for that.

HEMMER: In a moment here, former Enron chief Ken Lay makes a strong comment, strong comments in his own defense yesterday. His alma mater is sticking by him. Andy has that, "Minding Your Business" in a moment.

COLLINS: Also ahead, the sport of track and field should be basking in the spotlight. Instead, though, a doping scandal puts it under the microscope.

HEMMER: Also, let's get ready to rumble, TV style. We'll explain ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Some of the nation's best athletes begin their quest for gold today, as the U.S. Olympic track and field trials open in Sacramento. But as Josie Burke reports, the competition will take place under a cloud of controversy.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN SPORTS CORRESPONDENT (voice-over): One-time world record holder in the 100 meters, Maurice Greene, has one wish at the start of the track and field Olympic trials, to see the drug scandal go away.

MAURICE GREENE, U.S. SPRINTER: I just wish it would just get over with as soon as possible, so our sport can move on from it. CHRISTIAN CANTWELL, U.S. SHOT PUTTER: You know, quit dragging it out. They know that they're guilty. They're just trying to -- to dance around, you know, make themselves look better. You know, they're trying to save what reputation they have left.

BURKE: Five athletes fighting doping bans from the United States Anti-Doping Agency are competing for spots in Athens. None of the cases appear close to settlement. The uncertainty has cast a shadow over the entire sport at the one time every four years when track and field is supposed to enjoy being the focus of the sports world.

GREENE: They're talking about, oh, this athlete is under suspicion, this athlete has said this, this athlete has done this, and everything else. So, I mean, it's very hurtful.

CANTWELL: The length that they're going to get these people out, these people that have been cheating us out of our spotlight and all that stuff, I mean, great, get them out. Hang them all. I don't -- you know, it has no effect on me.

BURKE: The athlete who may be under the most scrutiny at the trials in Sacramento is the sport's most recognizable figure, Marion Jones. There have been a flurry of rumors, but no charges against Jones. But having her name in any way linked to the scandal has all athletes feeling the sting of suspicion.

JOHN CAPEL, U.S. SPRINTER: Right now, anytime anyone runs a very, very fast time, you know, they'll say, you know, what, is he on performance-enhancing drugs.

BURKE (on camera): What happens if any of the athletes under suspicion make the team? Even though the United States must submit its final roster by July 21, the International Olympic Committee will allow substitutions under exceptional circumstances before the games begin. Of course, there is no guarantee that all the cases will be decided by then.

Josie Burke, CNN, Sacramento.

(END VIDEOTAPE)

COLLINS: And the trials run from today through next Sunday -- Bill.

HEMMER: I want to take you to Washington yesterday, Heidi. A brawl between two journalists on videotape, tempers flaring after a press conference in Washington. Here we go.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What are you talking about? You're crazy.

UNIDENTIFIED MALE: You're crazy, man.

UNIDENTIFIED MALE: Did you just hit me?

UNIDENTIFIED MALE: Hey, hey!

(END VIDEO CLIP)

HEMMER: Somebody's crazy there, huh? And somebody's ticked off, too. It seems the cameraman with CBS News and a reporter of "The New York Post" had it out. Some fellow journalists jumped in to break it up and calm the two down. It looks like the one guy tripped over a chair, though, don't you think, Heidi?

COLLINS: Yes. It looked like the -- the smaller guy first was doing the spot grab on the back of his neck. Interesting.

HEMMER: So a brawl in D.C.

COLLINS: All right. Professionalism at its best.

HEMMER: Yes.

COLLINS: Still to come today, it's your Friday edition of "90- Second Pop." Cameron Diaz played one of "Charlie's Angels" on the big screen. But 12 years ago, she reportedly wasn't wearing her halo or much else. A risque video hits the Web.

Plus, VH-1 loves the '90s. But have they been gone long enough for you to care? It's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Almost 9:30 here in New York.

In a moment here, we're going to look at Marine Corporal Wassef Hassoun leaving Lebanon, on his way to Germany. Much of that story is still a mystery, though, surrounding the circumstances for his captivity in Iraq and a lot of questions. In a moment, we'll talk to retired General Don Shepperd about it, find out of he thinks this is suspicious or not.

COLLINS: Right. And they just changed his status, too, from captured to returned, the military. So we're going to get his advice -- or his thoughts on that, I should say.

Also, on a lighter note, "90-Second Pop" coming up. Cameron Diaz in the spotlight now for a potentially embarrassing video made many years ago. You think? It's kind of racy stuff we're going to tell you about.

HEMMER: Oftentimes they turn that to their own PR advantage, do they not?

COLLINS: I think so.

HEMMER: Opening bell from Wall Street. Here we go on a Friday morning now. Off about 68 points yesterday. Andy tells us the concern again is oil. 10,171 is the opening mark for the Dow 30. Nasdaq starting at 1,935 today, off about 30 points yesterday. Stocks open for business now here in New York -- Heidi. COLLINS: Marine Corporal Wassef Ali Hassoun has been flown out of Lebanon today. Hassoun is expected to get a medical checkup and a debriefing. His family spoke with Hassoun yesterday and had this to say...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We are very grateful to (UNINTELLIGIBLE) Allah that we have our brother, Wassef, back in safe hands at the U.S. embassy.

UNIDENTIFIED MALE: Have you heard from your brother?

UNIDENTIFIED MALE: Yes, I have.

UNIDENTIFIED MALE: What's he doing? How does he sound? How does he feel?

UNIDENTIFIED MALE: He sounded OK. I was told that he had lost some weight. But he is -- he's well.

(END VIDEO CLIP)

COLLINS: Hassoun disappeared June 19 and had been listed as "captured" in Iraq after being seen on video blindfolded, as you see here. Many questions, though, do remain about Hassoun, and whether his capture was all a hoax.

How will the military proceed in this case? We bring in CNN military analyst, retired Major General Donald Shepperd. He's joining us from Tucson, Arizona, this morning.

Good morning, General.

MAJ. GEN. DON SHEPPERD (RET.), U.S. AIR FORCE: Good morning, Heidi.

COLLINS: First of all, let's get to the news that we have just learned about changing his status. The military has changed his status from captured to returned to military control. What does that mean and what does it tell you?

SHEPPERD: Well, what it means is that when he's back under military control they can officially investigate the whole -- initial interview. Then there will be -- there can be a Title 32 investigation if there are mysterious circumstances uncovered in the interview. And then he can also be brought up on a court-martial if they find out that he was absent without leave or deserted, Heidi. Lots of mysterious stuff on this one.

COLLINS: So are you suspicious?

SHEPPERD: Absolutely. I was suspicious from the very beginning for several reasons.

First of all, normally, the military immediately reports a person missing. It helps establish their status and puts responsibility for them on the people that -- that captured them.

Secondly, when we saw him on the video, supposedly captured, he didn't look like all the other hostages we've seen. He wasn't beat up. His mustache was well trimmed. His blindfold was put on very carefully, white, very neatly. His uniform was starched.

This did not fit the -- the things that we had seen before with the other hostages. And then the fact that the military did not report him as missing was perhaps the most -- was perhaps the most thing that put -- that set me off the most as far as being suspicious about this.

COLLINS: All right. General Shepperd, bear with us, and the viewers as well. We're having a little bit of difficulty with your audio. But I want to point out also that the Naval Criminal Investigative Service is looking into how Hassoun disappeared from his unit.

Now, it happened in Fallujah. We have heard that as being a serious hotspot, of course, with everything that's going on in Iraq. But can the brutal conditions of war, or anything else, for that matter, ever be a legitimate excuse for leaving your unit?

SHEPPERD: No. It can be a defense. But what -- if this goes, for instance, to a court-martial, the key will be, in a court-martial, did a person go absent without leave, or did he desert.

Absent without leave means you probably intend to come back. Desertion means you intend to leave forever. And that can be punishable in time of war even up to death. Although, certainly not likely in this case.

But there's no excuse for abandoning your post and abandoning your buddies in the middle of a war. Now, probably, his defense will -- could -- could be that he was traumatized by the loss of his buddies, that type of thing. But it does not give you the excuse to leave. You can't just walk off the job in the military, especially in the middle of a war, Heidi.

COLLINS: We have already mentioned that Hassoun will be transported to Ramstein. They usually do medical checks there. And, of course, a debrief.

What's going to happen next? Will he be required to return to his unit?

SHEPPERD: Because of the circumstances of this, once they investigate this, if there's any indication that this was all a hoax, and that he left on his own, he's going to be subjected to a hearing, and then probably a court-martial. It will be very unlikely that he's returned to his unit, unless, indeed, it's proven that he was indeed kidnapped, transported to Lebanon.

But a big question is, how do you get from Iraq to Lebanon? You've got to get through western Iraq, dangerous place. You've got to get through Syria. This simply doesn't add up. Don't want to convict the guy on TV before a hearing, but there's a lot of mysterious stuff here, Heidi.

COLLINS: All right. Some excellent points. We appreciate your time, as always, General Donald Shepperd tonight -- today, this morning.

SHEPPERD: You bet.

COLLINS: Whatever time of day it is.

HEMMER: Listen, you're working around the clock anyway. You've got an excuse, right?

Twenty-five minutes now before the hour. In a moment, revisiting one of the folks we once profiled here on "Extra Effort," our Friday segment. She's just one woman trying to save the world's children. No small matter for her.

In a moment, also some lighter news in "90-Second Pop." Find out why making the rounds on the Internet, they have come back to haunt Cameron Diaz. But does that necessarily hurt her?

Back in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Oh, good lord! It is Friday, and it's time now for "90-Second Pop," which always tastes better on a Friday.

Joining us this morning, a first-timer, Jessi Klein, a comedian, and she is from VH1.

Jessi, we're glad to have you.

And Toure, our regular old guy from "Rolling Stone."

TOURE, "ROLLING STONE": Thanks.

COLLINS: And "New York" magazine contributing editor, Sarah Bernard.

Very lovely having all three of you today.

Sarah...

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Yes.

COLLINS: ... we've got to get to Cameron. I mean, we really like Cameron.

BERNARD: Yes, we all like Cameron.

COLLINS: But this new tape that's out, it's actually called, "She's no Angel." Cameron Diaz...

BERNARD: That's funny. Get it? "Charlie's Angels."

COLLINS: I get it, but, yikes!

BERNARD: I know. So, Cameron, when she was 19 years old made this very, very soft porn video with a photographer named John Rutter, who has ever so kindly released it to an Internet company who is now selling it online. And it is very, very mild, I have to say. She's got some fish nets on. She's topless about a third. It's very Austin Powers-like. She's dancing around, and it almost doesn't seem like a real serious thing.

And it's not really like the Paris Hilton or the Pamela Anderson tape, but in terms of what it's going to do for her career...

COLLINS: Right.

BERNARD: ... I really don't think it's not going to damage it at all. In fact, it makes her more intriguing. She's kind of the victim here. She really didn't want this out, and now it's getting out. But everyone feels sorry for her, but it's going to be fine.

COLLINS: And they're going to be talking about her again.

TOURE: Well, in the '80s, right? It was this sex -- it was the pictures that you took before that got out.

BERNARD: Vanessa Williams!

TOURE: And Vanessa Williams.

COLLINS: Right.

TOURE: Madonna that happened to. But now, of course, this generation, it's the sex tape, which is the ultimate underground gorilla marketing tool. It changed Pam Anderson's life, right? It changed Paris Hilton's life.

BERNARD: Exactly.

TOURE: I don't know if it's going to change Cameron Diaz's life, but it's a good thing for her.

BERNARD: And we haven't been talking about her much except for as Justin Timberlake's girlfriend for a while, right?

JESSI KLEIN, COMEDIAN: Right.

COLLINS: Yes.

KLEIN: Well, the other thing to me is from the description of it, it doesn't sound that different to me from her other movies. She's getting paid millions of dollars.

BERNARD: But you know...

(CROSSTALK) KLEIN: I like her. I see her as somebody who...

BERNARD: She's actually in a movie called "X-Girls," where she plays a playboy bunny. So there you go.

COLLINS: Oh, it never ends.

TOURE: But there's also a book, which has nothing to do with this, about Alec Baldwin, right? You've got to see it.

KLEIN: Oh, I saw that.

BERNARD: All right.

TOURE: It's called, "I, Alec Baldwin," and it's amazing.

COLLINS: Yes, that's for a whole another show.

TOURE: Is it great?

BERNARD: We'll dedicate another pop for that.

COLLINS: Jessi, we're going to stick with you here now. "I Love the '90s." KLEIN: Yes.

COLLINS: It's going to debut on VH1 on Monday.

KLEIN: Yes, it's new.

COLLINS: I'm trying to think of stuff in the '90s. It feels like a long time ago. "90210" is the only thing that comes to mind.

KLEIN: Yes, "90210."

TOURE: "Prada."

KLEIN: "Prada." You know, some people are criticizing and saying, is it time yet, I guess, is the question, to do '90s nostalgia? And I personally think you know what? We all do genuinely miss the '90s at this point. Things are going so badly. At least during the '90s, it was a time of relative peace and prosperity. My biggest problem was I didn't get the Rachel haircut in time, and I've always regretted it.

COLLINS: Clearly that's a larger issue.

KLEIN: Yes, a really big problem. And now, you know, it seems like, well, it was only four years ago that it was the '90s, but when during that four years we've kind skirted with World War III, it seems a smidge longer. So, I'm excited for it.

BERNARD: (UNINTELLIGIBLE).

KLEIN: Yes. Yes.

TOURE: I think (UNINTELLIGIBLE). COLLINS: I think we're ready, though, to go back.

BERNARD: I think we're going to -- you know, since the nostalgia cycle is so quick, we're going to start doing I love "90-Second Pop" in like June, early June.

KLEIN: Or start doing it in the future, saying, I love 2006 in a week.

COLLINS: But really, that's a good point. I mean, what is it? What is the big thing in the '90s that people, you know, are really remembering, are really wanting to feel nostalgic about?

BERNARD: Having a president whose scandal was just a...

TOURE: Was something...

BERNARD: ... female issue.

KLEIN: Or was something that...

(CROSSTALK)

TOURE: Into a more (UNINTELLIGIBLE) time, right?

BERNARD: Yes.

TOURE: I mean, like everybody was making money and it seemed like the sky was the limit.

COLLINS: Hmm.

TOURE: You know, I mean, like anything was possible.

COLLINS: All right.

BERNARD: The anxiety level was lower.

COLLINS: All right, well, thanks, you guys. It was nice seeing all of you. Jessi, glad to see you for the first time.

KLEIN: Oh, thank you so much.

TOURE: Yea!

COLLINS: All right, Bill. Back over to you.

HEMMER: All right. Well done. Twenty minutes before the hour now.

In a moment, Ken Lay's money apparently still good at his alma mater. Andy explains ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. An uneasy connection between the University of Missouri and an alum, a famous alum, indicted former Enron boss, Ken Lay. Andy checks back in on that.

Good morning.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Good morning to you.

HEMMER: First, the markets. What's happening on a Friday?

SERWER: Ah. The sound you just heard is a relief rally. Stocks moving up this morning, finally. It's been a rocky couple of weeks.

Here we go -- 56 points on the Dow. GE moving ahead. Some comments from Jeffrey Immelt, saying that business is improving.

Same thing with Abbott Labs. That stock is up, too. Some good news there. Abbott Labs out of Abbott Park, Illinois, founded by Dr. Abbott -- Abbott.

HEMMER: The son of Mr. And Mrs.

SERWER: Yes, that's right.

COLLINS: Abbott.

SERWER: Thank you -- Abbott.

Let's talk about the University of Missouri. Hey, we have an intern from the University of Missouri here.

HEMMER: Yes, we do.

SERWER: Claire Kelly (ph).

HEMMER: Yes, Claire.

(APPLAUSE)

SERWER: Hey, Claire. How are you doing?

HEMMER: That's not her.

SERWER: Well, we have some news...

HEMMER: That's her.

COLLINS: There...

SERWER: There's Claire. Claire, this story is about the University of Missouri and has to do with Ken Lay. There's an open professorship at the University of Missouri. It's the endowed share that Ken Lay set up in 1999.

It's the Kenneth L. Lay Chair in Economics. And this happened in 1999, when Ken Lay gave the school some Enron stock, which luckily for the school it sold right away. It gave them $1.1 million.

And they've been trying to find someone to fill this post for years. And surprise, surprise, no one will take the job.

Here's a news flash. Memo to the University of Missouri: give the money back. You can't -- this is not right. Or, you should probably try to find someone who lost a lot of money at Enron, an Enron employee, a janitor who lost his life savings. That would be another nice thing to do with that money.

Or change it from a professorship of economics to a professorship of ethics. I mean, you can't just go ahead and do this thing. And the school has said they're defending it. They say he's only been indicted, he hasn't been convicted.

HEMMER: Innocent until proven.

SERWER: You can't -- you can't just -- you can't do that.

CAFFERTY: No, no.

HEMMER: And a strong defense yesterday.

SERWER: What do you think, Claire?

UNIDENTIFIED FEMALE: I'm going to go with you and say give the money back.

SERWER: Give the money -- that's probably the smart thing.

(CROSSTALK)

CAFFERTY: Why don't they send up a scholarship fund?

SERWER: Right. Good choice.

CAFFERTY: And give it to some needy kids. That way, they can keep the money...

SERWER: Poor Claire.

CAFFERTY: ... put it to good use, and not give it back to -- you're fired, Claire.

HEMMER: It's not Claire's fault. She works for free.

SERWER: That's true. You can't fire her. She's a volunteer.

HEMMER: Thank you, Andy.

SERWER: You're welcome.

HEMMER: Oh, my.

(CROSSTALK)

SERWER: Yes, my summer in New York, right, Claire? All right.

COLLINS: Be nice to my friend Claire. SERWER: Yes. She's doing a great job.

COLLINS: She is curious (ph). All right.

In the meantime, it is 45 minutes past the hour, time for a look at some of today's other news with Fredricka Whitfield in Atlanta.

Hey, Fredricka.

WHITFIELD: Hey. All right.

Well, the Senate Intelligence Committee is blaming the CIA for intelligence failures in pre-war Iraq. Sources familiar with the report say the agency is criticized for a lack of balance and for relying too much on information from Iraqi defectors. The report expected to be released in less than an hour now.

Additional charges are reportedly being filed against Army Private Lynndie England, one of the seven military soldiers accused of abusing Iraqi prisoners. Army officials reportedly saying the new charges do not involve detainees or Iraqi nationals. England is expected to face a military tribunal next week. Her attorney will be a guest on AMERICAN MORNING on Monday.

Suspected terrorists held at Guantanamo Bay in Cuba must challenge their detentions in Washington, D.C. A federal court of appeals making the ruling yesterday. It comes weeks after the U.S. Supreme Court decided that detainees should be allowed access to American courts.

The court says Washington is the right venue, because the detainees are overseas and they are suing the federal government. Until now, no specific court had been appointed to hear the challenges.

And in campaign 2004, the Democratic ticket taking New York City by storm. Senator John Kerry and Senator John Edwards are in the Big Apple this morning for two campaign breakfasts. At a celebrity fund- raiser last night, more than $7 million was raised for the Democratic Party.

Meanwhile, President Bush will be stumping in Pennsylvania today. He'll be taking a bus tour through the battleground state.

Now back to the gang. Heidi, Bill, Andy?

HEMMER: All right. Fredricka, thanks.

COLLINS: Thanks, Fredricka.

All right. We're going to check in with Jack now and the "Question of the Day." I'm scared to do that, but here we go.

SERWER: Just don't touch him.

COLLINS: Don't touch him. SERWER: No, don't touch him.

CAFFERTY: That's one of the AMERICAN MORNING rules. We have several. That's just one.

SERWER: Don't touch the merchandise.

CAFFERTY: And for those of you who wrote and said -- you know, it was a joke. All right? It was a joke. You want to touch me? Go ahead, touch me.

SERWER: Touch me in the morning.

COLLINS: I'm not going to take that invite now.

SERWER: Walk away.

CAFFERTY: If you could get a face transplant, whose face would you want? This actually turned out to be kind of fun.

Rex in Toronto writes, "Face transplants? I give up, Jack. From now on, I'm just going to answer what I think the "Question of the Day" should be. Yes, Israel should tear down the security fence."

Murray in Baton Rouge, "For one day only, I would like the face of George Bush. I would sidle over to Dick Cheney and say, 'Tell me again why we invaded Iraq.'"

And Helen in Social Circle, Georgia, writes a little poem. "I know just how homely I are, I know that my face ain't no star. But gosh, I don't mind it, because I'm behind it, it's the fellow in front gets the jar."

(LAUGHTER)

COLLINS: Wow. That was incredibly creative, Helen.

CAFFERTY: That's cute, right?

COLLINS: I'm impressed, yes.

CAFFERTY: Where is Social Circle, Georgia?

SERWER: Social Circle? West of Athens.

COLLINS: I don't know that.

HEMMER: I think it might be, actually. North of Atlanta? Safe bet.

SERWER: It probably is. West of Savannah, how about that?

CAFFERTY: Oh, yes, "IN THE MONEY." Andy and I have this tidy little business show where, among other things, we're going to take a look at significant vice presidents down through the years. That will be the first 14 seconds of the program. This is all because of the John Edwards thing.

One of the things we are going to do, though, is a segment on how cell phones have changed our society. And I might add, I don't think any for the better. So "IN THE MONEY," Saturday at 1:00, Sunday at 3:00 here on CNN.

COLLINS: All right, Jack and Andy. We'll be watching. OK.

CAFFERTY: No, you won't.

COLLINS: Yes, we will.

Still to come, a bittersweet good-bye. We'll catch up with an Iraqi boy who calls himself Joe America, and hear from the woman who went the "Extra Effort" to give him a new lease on life.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: In our weekly "Extra Effort" series, we pay tribute to those going the extra mile to help others. And this morning, we revisit a woman one a mission to save the children of war, and one of the true survivors. Here's Alina Cho.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): He roller blades, plays video games, even calls himself Joe America. In the five weeks Ali Ameer has been in America, he's even found love.

CHO (on camera): You have a girlfriend?

ALI AMEER, SURVIVOR OF WAR: Yes.

CHO (voice-over): On Saturday, Ali heads home to Iraq. Elissa Montati, who brought him here, says saying good-bye will be tough.

ELISSA MONTATI, GLOBAL MEDICAL RELIEF FUND: It's going to be very sad, because he has latched on to me as much as I have to him.

CHO: Montati heads up the Global Medical Relief Fund, a nonprofit group that helps injured children in war-torn countries find treatment in the U.S. Sounds impressive. She says it's run on a shoestring budget.

(on camera): How do you survive?

MONTATI: On a prayer.

CHO (voice-over): On a trip to Iraq last year, Montati found Ali, who lost his hand after picking up a grenade. Lost month, she brought the 14-year-old here to Shriner's Hospital in Philadelphia.

UNIDENTIFIED MALE: Up and down. CHO: Ali was fitted with a prosthetic hand free of charge. For the past several weeks, he's been learning to use it. When Ali goes home, he'll tell his family...

MONTATI: He's going to tell them that they're good people and that they help the world.

CHO: Montati is already looking ahead to the next child she hopes to bring back in September.

MONTATI: This is her picture.

CHO: A 4-year-old Iraqi girl who lost her leg when her house was bombed.

(on camera): Another child to love.

MONTATI: Another child to love. There's plenty of that to go around.

CHO (voice-over): On why she does it...

MONTATI: You can sleep at night. And the reward is something that is -- is even hard to explain.

CHO: Perhaps better in pictures. This one she'll send home with Ali. When asked what he'll miss most about America. His answer comes quick.

AMEER: Elissa.

CHO: Who he'll never forget.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

COLLINS: And you can find out more about Elissa's organization on their Web site at globalmed.org.

Coming up on CNN now, we're about half an hour away from the release of that Senate panel's report on pre-war intelligence in Iraq. CNN will bring it to you live as it happens. That's coming up with Daryn Kagan on "CNN LIVE TODAY."

For now, AMERICAN MORNING will be back in just a moment

(END VIDEO CLIP)

HEMMER: Before we get out of here, 12 short hours away from "NEWSNIGHT" with Aaron Brown. Here's Aaron with a preview of what's coming later tonight -- Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," John Edwards often speaks of his hard- scrabble background, small town South, working class family, first in his family to go to college. Tonight we hear from his folks, Bobbie and Wallace Edwards, who say, as most parents would, I think, that they are amazed and at times overwhelmed by their son's stunning success.

We'll have their story, plus all the day's top news. It's Friday. That means tabloids on the menu as well, and lots more. That's "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern.

Bill, have a good weekend.

HEMMER: All right, Aaron, thanks. And you, too, as well.

Before we get out of here, Soledad's been on vacation all week. That's a fact. But while she was on vacation, her doctor told her to take it easy a little bit, put her on bed rest.

We're not going to see her for a very long time around here for AMERICAN MORNING, but we are told that she is bored. Typical for Soledad, because she's always moving and doing something.

And we'll let you know when the twins come along. So we wish her the absolute best, and we miss her here at AMERICAN MORNING.

SERWER: Yes, indeed.

COLLINS: Yes, we do.

HEMMER: In the meantime, you're going to be seeing a whole lot more of Heidi over here, too. So welcome...

COLLINS: I'm sorry about that.

HEMMER: No, don't be sorry. You're more than welcome. So our best to Brad and Soledad. And take care and come back very, very soon.

COLLINS: I can't wait to see the babies.

HEMMER: That's right. We've got to run.

Jack...

CAFFERTY: What?

HEMMER: Have a great weekend.

CAFFERTY: Thank you, Bill.

HEMMER: I'm off next week.

SERWER: Yes.

CAFFERTY: Oh, you're on vacation.

HEMMER: Yes. CAFFERTY: The Hemmer family reunion.

HEMMER: The annual Hemmer (UNINTELLIGIBLE) gets under way tomorrow.

SERWER: Yes, oh, boy. Alert the...

(CROSSTALK)

CAFFERTY: It will be you and me, Collins.

COLLINS: Yes, and Anderson, and anybody else we can get to help.

HEMMER: You've got it.

CAFFERTY: Are you doing anybody else's shows next week? I mean, you're doing two, three a day now, aren't you?

COLLINS: No. Just that show next week. But 7:00 tonight one more.

CAFFERTY: Great.

HEMMER: Thanks. We've got to run.

COLLINS: Daryn's waiting.

HEMMER: Here's Daryn Kagan.

Hey, Daryn.

COLLINS: Hey, Daryn.

HEMMER: Happy Friday.

DARYN KAGAN, CNN ANCHOR: Happy Friday. You guys have a great day and a great weekend in New York City. Our best to Soledad and those babies.

HEMMER: Yes, for sure.

KAGAN: May they cook for about another 10 weeks.

COLLINS: Right.

KAGAN: Stay right where they are. Very good. OK. We will see you guys on Monday morning. We'll get started.


Aired July 9, 2004 - 9:00   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. Fears raise about a new terrorist plot, possibly with Osama bin Laden pulling the strings. Why then is the national alert level still at yellow?
John Kerry, his first interview since choosing John Edwards as his running mate.

(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: He's talking only with Larry King. And now the decision is made. Is Edwards giving Kerry the bounce he wants and needs?

California's secretary of education in a bit of hot water after making a really strange comment to a 6-year-old girl. We'll have it for you this hour on AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: Good morning. 9:00 here in New York. What a day we have today. High of 82, blue skies. Let's get out there, huh?

Soledad continues her time off. Heidi Collins here.

Good morning to you.

HEIDI COLLINS, CNN ANCHOR: I'll be going to bed to enjoy the next day.

HEMMER: That you will.

In a moment here, the new terror warnings making headlines today. What do officials know? Do the warnings help the public or not? We'll have an interview with Homeland Secretary Tom Ridge in a matter of moments, also talk to a police chief in a major American city, John Timoney in Miami, about what he is hearing and doing now in his town.

COLLINS: Also, high anxiety among U.S. Olympic hopefuls as the Anti-Doping Agency investigates possible steroid use. Which high- profile athletes could be losing a spot at the games? And how will this affect the U.S. chances for gold this summer? We're going to look at that.

HEMMER: Also, the mystery surrounding Marine Corporal Wassef Hussein, talking about that with retired Air Force General Don Shepperd, find out if the general thinks the circumstances are suspicious or not. There are some believe it could have been a hoax. We'll try and get to the bottom of it in a matter of moments here.

COLLINS: In the meantime, hi, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning, Heidi.

Serious question. Doctors are doing research on one day being able to do face transplants for people who are, for example, badly disfigured in an accident. Silly application of a serious medical story, if you could get a face transplant, whose face would you like to have for the rest of your life? Am@cnn.com

HEMMER: Good deal. Thank you, Jack.

Homeland Security Secretary Tom Ridge says there is universal acceptance among analysts about the current terrorist threat to the U.S. Intelligence indicates that al Qaeda might be planning an attack in this country before the election, November 2. Earlier this morning on AMERICAN MORNING here, I talked to Secretary Ridge, asking him what has changed recently that warranted going public yesterday.

(BEGIN VIDEOTAPE)

TOM RIDGE, HOMELAND SECURITY SECRETARY: The intelligence picture can change on a regular basis. It is a dynamic process. I mean, in every single day, the intelligence community, whether it's the CIA, the FBI, DOD, or allies overseas, take a look at the information, and either add or subtract.

But again, it's a dynamic picture. And the foundation for yesterday's announcement was the universal acceptance of the credibility of the sources within the intelligence community, the continued speculation.

I mean there's Web sites and other reporting and anticipation in the -- in the conversations, the Web sites and other reporting of al Qaeda, the fact that they talk about a timeframe. That's not very -- very usual to disrupt the democrat process. And again, the take- downs, where we arrested not only the people, but they had the capacity to conduct the attack, that's a picture. And every single day, working with not only our allies around the world, but domestic agencies, we're trying to get more and more information to make that picture much clearer today, give us more specific information we can act on.

HEMMER: Help me understand the process. Help me understand what you're dealing with down there in Washington, why you go public with a full-blown press conference, but yet the terror threat level does not change.

RIDGE: Well, the terrorist threat level doesn't need to change for us, one, to give a sobering statement to America about the risk and about what we know. The terrorist threat level doesn't have to change in order for us to continue to build in preventive and additional security measures.

One of the reasons that we are cautious about taking up the national threat level, it is very, very labor intensive. You cannot sustain it indefinitely. It is physically and emotionally very, very taxing.

We may raise it. There's nothing to suggest today that we would do it. But we may raise it in the future. But we do it on a selective basis. But I think it's even more important to know that we don't have to raise the threat level to work with state homeland security advisers and local chiefs of police, the FBI, the joint terrorism task forces, and everybody else to go out and look for more information, at the same time, harden America against the possibility of an attack.

HEMMER: And take the last point. I think this is very critical here. When viewers listened to you talk yesterday, and again today, what do they look out for?

RIDGE: Well, first of all, as I mentioned yesterday, they ought to be assured that the law enforcement community and the security professionals every single day go about their job with the same kind of intensity and aggressiveness. That has been sustained for two-plus years since September 11.

What we say to citizens, one, you need to know that your -- your professionals are hard at work. But there are a couple of things you can do. Your common sense and your eyes and ears could potentially help us stop a terrorist attack.

If there is suspicious activity, you see something that's out of the ordinary, call the local law enforcement agency, call your local sheriff. There's not a week that doesn't go by that we don't have a citizen noticing something that's unusual that leads to an investigation.

And if -- and if you had the time, we encourage people to go to the Web site, ready.gov. There are things we would like you to do for your family just to be prepared. But more importantly than anything else, know that your security professionals are hard at work, not just at the federal government, around the country, down to the local community.

(END VIDEOTAPE)

HEMMER: Tom Ridge from earlier.

How is law enforcement reacting to this latest threat? One of the biggest cities in America is Miami, Florida. John Timoney is a police chief there.

Chief, good morning to you.

JOHN TIMONEY, MIAMI POLICE CHIEF: Good morning, Bill.

HEMMER: What changes for your community now?

TIMONEY: Nothing really, because there was nothing new. We had the information over the last two months. I guess this is just a reiteration or a confirmation.

My sense is, listening to Tom Ridge yesterday, that they've received additional confirming information as a result of the arrests in Italy, Jordan and Great Britain. And so he's going out just, again, reminding people.

He's kind of, though, in a damned if he does, damned if he doesn't situation. You know, he comes out with the information. He's accused of unnecessarily alarming people. If he doesn't raise the color, he's saying, why didn't you raise the color?

I think all of this, over the last year and a half, has been a learning experience for Homeland Security. Early on, he was criticized for raising the colors too often and too fast. I think there's a recognition or a growing awareness that when you raise the color, a whole host of other things kick in that cost money, resources, manpower, a whole host of things.

And so they're -- they're pretty careful now over the last six months in regards to raising the color level, because they understand the impact it will have on local communities. And so, for example, in New York it's $5 million.

HEMMER: If I could stop you just for a second. You're talking about the cost there, and I know where you're going with this. On both sides, Republicans and Democrats all say that they will spare no cost when it comes to keeping America safe.

TIMONEY: Yes, right.

HEMMER: How then do you mix the two and make them -- well -- if you're saying it's costing money, OK, and if we're hearing out of D.C. every day that they will not spare any cost, how do you mix the two?

TIMONEY: Well, there's another important thing, which was evident to me right after 9/11. As you know, I was the police commissioner of Philadelphia then. When we were under the highest state of alert, where we had officers out at locations 12 hours a day, it became clear after two or three weeks, we couldn't sustain this going forward.

Even if we had all the money in the world, that there's a burnout rate, there's a boredom rate. And the biggest enemy is -- is, after a while, two or three weeks of this sustained activity, of people becoming complacent. And so while I hear other chiefs once in a while complaining, I don't complain about these occasional warnings or the elevation of the color, because it reminds us there's an enemy out there.

We know for a fact there are some people already in the country that are planning to do harm to this country. And so it's a good reminder. But I don't think you can sustain a level of color orange over the long term more than two or three weeks.

HEMMER: As we wrap this up, Jane Harman, congresswoman out of California, she said yesterday -- I'm quoting -- "Warning fatigue" -- "Warning fatigue is a real worry." But what I hear you saying is that this is just a reminder out of D.C.

TIMONEY: Exactly. And I welcome reminders like that. Clearly, it's not the same old information. Clearly, information has come in, in the last two or three weeks.

Tom Ridge is not going to go into it. It probably isn't anymore specific. But regards to the time, he's getting confirmation about information we already have coming from a variety of sources that have credibility.

HEMMER: John Timoney is the police chief in Miami. Good to talk to you as always. Thank you, Chief.

TIMONEY: Thanks, Bill.

HEMMER: About an hour from now, the Senate Intelligence Committee releases a critical report of the CIA's work prior to the war in Iraq. Sources telling CNN, among other charges today, the report says the agency did not correctly investigate claims about Iraq's alleged nuclear and biological programs. Earlier, I talked with the intelligence committee member, Republican Senator Saxby Chambliss about that.

(BEGIN VIDEO CLIP)

SEN. SAXBY CHAMBLISS (R), GEORGIA: 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.

(END VIDEO CLIP)

HEMMER: Senator Chambliss earlier today. Democrats not happy that the report does not cover possible misuse of intel before the report. That will be covered in another report which likely will not come out until after the election on November 2 -- Heidi.

COLLINS: In our campaign countdown, as of today, there are 116 days left until the November 2 presidential election. President Bush just moments ago left for Pennsylvania, where he is making several campaign stops in that battleground state. About to get on a plane, go up those steps with daughter, Jenna.

The President will make stops at Kutztown University in the town of Lancaster, and in York. First lady Laura Bush attends a fund- raising luncheon in Boston, Massachusetts. Democrats John Kerry and John Edwards also on a campaign swing, a four-day one. This morning, they're attending breakfast receptions in New York. Last night, in his first sit-down interview since picking Edwards as his running mate, Kerry spoke with Larry king about making that choice.

(BEGIN VIDEO CLIP)

KERRY: I believe what's important is that I've picked somebody with the character, with the judgment, with the values to be able to take over as President and lead this nation if something were to happen to me. I know from watching John Edwards on the campaign trail, from looking him in the eye as close as I am to you, and debating with him, and talking things through with him, from watching him in the Senate and watching him work, from looking at his lifetime of battles, 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)

COLLINS: Kerry also had fun at a celebrity concert at Radio City Music Hall last night in New York. Raised more than $7 million playing that guitar. But I don't think it's real (ph) music or not.

But anyway, how much help has John Edwards been so far to John Kerry's race for the White House? We're going to talk with Kelly Wallace about that.

So, what do you think?

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Well, Kerry's advisers have very big smiles on their faces, Heidi, because they think John Edwards can go anywhere around the country and help John Kerry, especially small town USA. And they also think their carefully choreographed rollout is going exactly according to plan.

(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 ginning 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 seems 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 1992, 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: And, of course, there are those unscripted moments. One last night, Heidi. Whoopi Goldberg kept referring to John Edwards as "kid." She said he looks 18 years old. Well, then John Kerry got up there and said, "Whoopi, I chose a man."

COLLINS: I see. OK.

Quickly for you, as we see the two of them together in all these different photo opportunities and fund-raisers like this, is there a chance now that after they've rolled out, so that John Kerry is not overshadowed by John Edwards, which we've heard a little bit of concern about that, that pretty soon now John Edwards will go away, if you will, for -- you know, kind of in the background more?

WALLACE: Well, what they're planning to do is have him go out on his own, starting as early as Wednesday of next week, because they think there are places he can go that John Kerry can't, rural America, small town USA. He talks about his small town roots.

So they think that will win, get more bang for your buck by sending him somewhere and sending John Kerry somewhere else. But Heidi, they also seem to think that John Kerry is doing a little bit better on the trail with John Edwards by his side.

COLLINS: Yes. He was playing a guitar.

WALLACE: Yes, strutting his stuff. So they might -- we might see the two together more often than we thought.

COLLINS: All right. Kelly Wallace, thanks so much for that. WALLACE: Sure.

COLLINS: Bill?

HEMMER: All right, Heidi. Almost 15 minutes past the hour. Fredricka Whitfield with us today at the CNN Center.

Good morning, Fredricka.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello again to you.

HEMMER: Rest of the news. Good morning to you as well.

WHITFIELD: Well, thanks a lot.

A status change for U.S. Marine Corporal Wassef Ali Hassoun. CNN has just learned about 10 minutes ago that Hassoun's official status has now been changed from captured to return to military control. The marine, who vanished last month, was back in U.S. hands at the U.S. embassy in Beirut, Lebanon. Officials say he is now en route to the U.S. military base in Germany.

U.S. military officials reportedly saying the insurgency in Iraq is much larger than previously thought. Sources also telling The Associated Press that the leaders are well armed Sunni Muslims, angry about losing power in Iraq.

President Bush's military records have reportedly been destroyed, according to "The New York Times." Payroll records of numerous service members were reportedly ruined by mistake during a project to salvage deteriorating microfilm. The records could have helped establish the president's whereabouts during his disputed service in the Texas Air National Guard more than 30 years ago.

The Senate is taking on the issue of same-sex marriage. Lawmakers are beginning debate today on a constitutional amendment that would spell out marriage as a union between a man and a woman. The amendment would prevent courts from ruling gay marriage as legal.

And a warning about SUVs. Transportation safety officials reportedly blaming improperly installed oil filters for more than two dozen Honda SUV fires. "The Washington Post" reporting that at least 27 Honda CRVs caught fire shortly after having their first oil changes. The newspaper cites records provided to the government by Honda. There were no reports of injuries in those fires -- Bill.

HEMMER: All right, Fredricka. Thanks for that.

California's education secretary, Richard Riordan, the former mayor in L.A., in fact, under fire for a strange comment he made to a 6-year-old girl. It came during a summer reading event on Wednesday. The little girl is named Isis. She was trying to explain the meaning of her name.

(BEGIN VIDEO CLIP)

RICHARD RIORDAN, EDUCATION SECRETARY, CALIFORNIA: And Erica?

UNIDENTIFIED FEMALE: Did you know that my name actually means an Egyptian goddess?

RIORDAN: It means stupid dirty girl.

UNIDENTIFIED FEMALE: No!

(LAUGHTER)

(END VIDEO CLIP)

HEMMER: A few hoots after that one. Ahead of the California NAACP wants Riordan to step down. The governor, Arnold Schwarzenegger, said it's unacceptable. He has not asked Riordan to resign, though. Once L.A.'s mayor, he's apologized -- the mayor has -- and the girl's mother has accepted that apology.

Yow!

COLLINS: The little girl apparently -- the mother said that she didn't take it very seriously. She knew he was kidding.

HEMMER: Stupid dirty girl.

COLLINS: OK.

Meanwhile, we're going to check in with Jack now and get to more interesting...

CAFFERTY: The guy's a moron and shouldn't draw another dime in salary from the taxpayers in the state of California. Get that walking barbell that's in the governor's mansion to fire his butt. That's what ought to happen. I almost hurt myself there.

Don't touch me.

(CROSSTALK)

CAFFERTY: Researchers say cosmetic surgeons may soon be attempting face transplants. The procedure would be used on folks who are disfigured. It's a serious story, except when we got a hold of it and we decided to have fun with it. So we're asking today, on Friday, if you could get a face transplant, whose would you want?

Bob in New Mexico says, "I want my own. I've earned the wrinkles and I wear them as a badge of honor. I remember the good times and the bad times that caused them."

Dolly up there in Norwalk, "A better question today would be this: do you think homeland security's trying to scare us to take attention off Kerry picking Edwards as his running mate? Can you raise the intelligence level of your questions? Shame on you!"

Dolly up there in Norwalk don't like the question.

David in Lawton, Oklahoma, "My fear would be expecting to look like Hemmer, end up looking like Michael Jackson."

And Ian, in Providence, Rhode Island, "Give me Hemmer's face for job interviews, Matt Damon's for hitting the bars, and Jack Cafferty's for scaring the dogs out from under my house."

HEMMER: Yeah! How about them apples?

CAFFERTY: That will work.

HEMMER: Yes, it will.

CAFFERTY: That will work.

HEMMER: Yes. We know, Jack.

COLLINS: We're going to check on the weather now.

CAFFERTY: That's twice.

COLLINS: Chad Myers at the CNN Center standing by to bail us out yet again.

Hey, Chad.

(WEATHER REPORT)

COLLINS: All right, Chad. Thanks so much for that.

HEMMER: In a moment here, former Enron chief Ken Lay makes a strong comment, strong comments in his own defense yesterday. His alma mater is sticking by him. Andy has that, "Minding Your Business" in a moment.

COLLINS: Also ahead, the sport of track and field should be basking in the spotlight. Instead, though, a doping scandal puts it under the microscope.

HEMMER: Also, let's get ready to rumble, TV style. We'll explain ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Some of the nation's best athletes begin their quest for gold today, as the U.S. Olympic track and field trials open in Sacramento. But as Josie Burke reports, the competition will take place under a cloud of controversy.

(BEGIN VIDEOTAPE)

JOSIE BURKE, CNN SPORTS CORRESPONDENT (voice-over): One-time world record holder in the 100 meters, Maurice Greene, has one wish at the start of the track and field Olympic trials, to see the drug scandal go away.

MAURICE GREENE, U.S. SPRINTER: I just wish it would just get over with as soon as possible, so our sport can move on from it. CHRISTIAN CANTWELL, U.S. SHOT PUTTER: You know, quit dragging it out. They know that they're guilty. They're just trying to -- to dance around, you know, make themselves look better. You know, they're trying to save what reputation they have left.

BURKE: Five athletes fighting doping bans from the United States Anti-Doping Agency are competing for spots in Athens. None of the cases appear close to settlement. The uncertainty has cast a shadow over the entire sport at the one time every four years when track and field is supposed to enjoy being the focus of the sports world.

GREENE: They're talking about, oh, this athlete is under suspicion, this athlete has said this, this athlete has done this, and everything else. So, I mean, it's very hurtful.

CANTWELL: The length that they're going to get these people out, these people that have been cheating us out of our spotlight and all that stuff, I mean, great, get them out. Hang them all. I don't -- you know, it has no effect on me.

BURKE: The athlete who may be under the most scrutiny at the trials in Sacramento is the sport's most recognizable figure, Marion Jones. There have been a flurry of rumors, but no charges against Jones. But having her name in any way linked to the scandal has all athletes feeling the sting of suspicion.

JOHN CAPEL, U.S. SPRINTER: Right now, anytime anyone runs a very, very fast time, you know, they'll say, you know, what, is he on performance-enhancing drugs.

BURKE (on camera): What happens if any of the athletes under suspicion make the team? Even though the United States must submit its final roster by July 21, the International Olympic Committee will allow substitutions under exceptional circumstances before the games begin. Of course, there is no guarantee that all the cases will be decided by then.

Josie Burke, CNN, Sacramento.

(END VIDEOTAPE)

COLLINS: And the trials run from today through next Sunday -- Bill.

HEMMER: I want to take you to Washington yesterday, Heidi. A brawl between two journalists on videotape, tempers flaring after a press conference in Washington. Here we go.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What are you talking about? You're crazy.

UNIDENTIFIED MALE: You're crazy, man.

UNIDENTIFIED MALE: Did you just hit me?

UNIDENTIFIED MALE: Hey, hey!

(END VIDEO CLIP)

HEMMER: Somebody's crazy there, huh? And somebody's ticked off, too. It seems the cameraman with CBS News and a reporter of "The New York Post" had it out. Some fellow journalists jumped in to break it up and calm the two down. It looks like the one guy tripped over a chair, though, don't you think, Heidi?

COLLINS: Yes. It looked like the -- the smaller guy first was doing the spot grab on the back of his neck. Interesting.

HEMMER: So a brawl in D.C.

COLLINS: All right. Professionalism at its best.

HEMMER: Yes.

COLLINS: Still to come today, it's your Friday edition of "90- Second Pop." Cameron Diaz played one of "Charlie's Angels" on the big screen. But 12 years ago, she reportedly wasn't wearing her halo or much else. A risque video hits the Web.

Plus, VH-1 loves the '90s. But have they been gone long enough for you to care? It's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back. Almost 9:30 here in New York.

In a moment here, we're going to look at Marine Corporal Wassef Hassoun leaving Lebanon, on his way to Germany. Much of that story is still a mystery, though, surrounding the circumstances for his captivity in Iraq and a lot of questions. In a moment, we'll talk to retired General Don Shepperd about it, find out of he thinks this is suspicious or not.

COLLINS: Right. And they just changed his status, too, from captured to returned, the military. So we're going to get his advice -- or his thoughts on that, I should say.

Also, on a lighter note, "90-Second Pop" coming up. Cameron Diaz in the spotlight now for a potentially embarrassing video made many years ago. You think? It's kind of racy stuff we're going to tell you about.

HEMMER: Oftentimes they turn that to their own PR advantage, do they not?

COLLINS: I think so.

HEMMER: Opening bell from Wall Street. Here we go on a Friday morning now. Off about 68 points yesterday. Andy tells us the concern again is oil. 10,171 is the opening mark for the Dow 30. Nasdaq starting at 1,935 today, off about 30 points yesterday. Stocks open for business now here in New York -- Heidi. COLLINS: Marine Corporal Wassef Ali Hassoun has been flown out of Lebanon today. Hassoun is expected to get a medical checkup and a debriefing. His family spoke with Hassoun yesterday and had this to say...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We are very grateful to (UNINTELLIGIBLE) Allah that we have our brother, Wassef, back in safe hands at the U.S. embassy.

UNIDENTIFIED MALE: Have you heard from your brother?

UNIDENTIFIED MALE: Yes, I have.

UNIDENTIFIED MALE: What's he doing? How does he sound? How does he feel?

UNIDENTIFIED MALE: He sounded OK. I was told that he had lost some weight. But he is -- he's well.

(END VIDEO CLIP)

COLLINS: Hassoun disappeared June 19 and had been listed as "captured" in Iraq after being seen on video blindfolded, as you see here. Many questions, though, do remain about Hassoun, and whether his capture was all a hoax.

How will the military proceed in this case? We bring in CNN military analyst, retired Major General Donald Shepperd. He's joining us from Tucson, Arizona, this morning.

Good morning, General.

MAJ. GEN. DON SHEPPERD (RET.), U.S. AIR FORCE: Good morning, Heidi.

COLLINS: First of all, let's get to the news that we have just learned about changing his status. The military has changed his status from captured to returned to military control. What does that mean and what does it tell you?

SHEPPERD: Well, what it means is that when he's back under military control they can officially investigate the whole -- initial interview. Then there will be -- there can be a Title 32 investigation if there are mysterious circumstances uncovered in the interview. And then he can also be brought up on a court-martial if they find out that he was absent without leave or deserted, Heidi. Lots of mysterious stuff on this one.

COLLINS: So are you suspicious?

SHEPPERD: Absolutely. I was suspicious from the very beginning for several reasons.

First of all, normally, the military immediately reports a person missing. It helps establish their status and puts responsibility for them on the people that -- that captured them.

Secondly, when we saw him on the video, supposedly captured, he didn't look like all the other hostages we've seen. He wasn't beat up. His mustache was well trimmed. His blindfold was put on very carefully, white, very neatly. His uniform was starched.

This did not fit the -- the things that we had seen before with the other hostages. And then the fact that the military did not report him as missing was perhaps the most -- was perhaps the most thing that put -- that set me off the most as far as being suspicious about this.

COLLINS: All right. General Shepperd, bear with us, and the viewers as well. We're having a little bit of difficulty with your audio. But I want to point out also that the Naval Criminal Investigative Service is looking into how Hassoun disappeared from his unit.

Now, it happened in Fallujah. We have heard that as being a serious hotspot, of course, with everything that's going on in Iraq. But can the brutal conditions of war, or anything else, for that matter, ever be a legitimate excuse for leaving your unit?

SHEPPERD: No. It can be a defense. But what -- if this goes, for instance, to a court-martial, the key will be, in a court-martial, did a person go absent without leave, or did he desert.

Absent without leave means you probably intend to come back. Desertion means you intend to leave forever. And that can be punishable in time of war even up to death. Although, certainly not likely in this case.

But there's no excuse for abandoning your post and abandoning your buddies in the middle of a war. Now, probably, his defense will -- could -- could be that he was traumatized by the loss of his buddies, that type of thing. But it does not give you the excuse to leave. You can't just walk off the job in the military, especially in the middle of a war, Heidi.

COLLINS: We have already mentioned that Hassoun will be transported to Ramstein. They usually do medical checks there. And, of course, a debrief.

What's going to happen next? Will he be required to return to his unit?

SHEPPERD: Because of the circumstances of this, once they investigate this, if there's any indication that this was all a hoax, and that he left on his own, he's going to be subjected to a hearing, and then probably a court-martial. It will be very unlikely that he's returned to his unit, unless, indeed, it's proven that he was indeed kidnapped, transported to Lebanon.

But a big question is, how do you get from Iraq to Lebanon? You've got to get through western Iraq, dangerous place. You've got to get through Syria. This simply doesn't add up. Don't want to convict the guy on TV before a hearing, but there's a lot of mysterious stuff here, Heidi.

COLLINS: All right. Some excellent points. We appreciate your time, as always, General Donald Shepperd tonight -- today, this morning.

SHEPPERD: You bet.

COLLINS: Whatever time of day it is.

HEMMER: Listen, you're working around the clock anyway. You've got an excuse, right?

Twenty-five minutes now before the hour. In a moment, revisiting one of the folks we once profiled here on "Extra Effort," our Friday segment. She's just one woman trying to save the world's children. No small matter for her.

In a moment, also some lighter news in "90-Second Pop." Find out why making the rounds on the Internet, they have come back to haunt Cameron Diaz. But does that necessarily hurt her?

Back in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Oh, good lord! It is Friday, and it's time now for "90-Second Pop," which always tastes better on a Friday.

Joining us this morning, a first-timer, Jessi Klein, a comedian, and she is from VH1.

Jessi, we're glad to have you.

And Toure, our regular old guy from "Rolling Stone."

TOURE, "ROLLING STONE": Thanks.

COLLINS: And "New York" magazine contributing editor, Sarah Bernard.

Very lovely having all three of you today.

Sarah...

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Yes.

COLLINS: ... we've got to get to Cameron. I mean, we really like Cameron.

BERNARD: Yes, we all like Cameron.

COLLINS: But this new tape that's out, it's actually called, "She's no Angel." Cameron Diaz...

BERNARD: That's funny. Get it? "Charlie's Angels."

COLLINS: I get it, but, yikes!

BERNARD: I know. So, Cameron, when she was 19 years old made this very, very soft porn video with a photographer named John Rutter, who has ever so kindly released it to an Internet company who is now selling it online. And it is very, very mild, I have to say. She's got some fish nets on. She's topless about a third. It's very Austin Powers-like. She's dancing around, and it almost doesn't seem like a real serious thing.

And it's not really like the Paris Hilton or the Pamela Anderson tape, but in terms of what it's going to do for her career...

COLLINS: Right.

BERNARD: ... I really don't think it's not going to damage it at all. In fact, it makes her more intriguing. She's kind of the victim here. She really didn't want this out, and now it's getting out. But everyone feels sorry for her, but it's going to be fine.

COLLINS: And they're going to be talking about her again.

TOURE: Well, in the '80s, right? It was this sex -- it was the pictures that you took before that got out.

BERNARD: Vanessa Williams!

TOURE: And Vanessa Williams.

COLLINS: Right.

TOURE: Madonna that happened to. But now, of course, this generation, it's the sex tape, which is the ultimate underground gorilla marketing tool. It changed Pam Anderson's life, right? It changed Paris Hilton's life.

BERNARD: Exactly.

TOURE: I don't know if it's going to change Cameron Diaz's life, but it's a good thing for her.

BERNARD: And we haven't been talking about her much except for as Justin Timberlake's girlfriend for a while, right?

JESSI KLEIN, COMEDIAN: Right.

COLLINS: Yes.

KLEIN: Well, the other thing to me is from the description of it, it doesn't sound that different to me from her other movies. She's getting paid millions of dollars.

BERNARD: But you know...

(CROSSTALK) KLEIN: I like her. I see her as somebody who...

BERNARD: She's actually in a movie called "X-Girls," where she plays a playboy bunny. So there you go.

COLLINS: Oh, it never ends.

TOURE: But there's also a book, which has nothing to do with this, about Alec Baldwin, right? You've got to see it.

KLEIN: Oh, I saw that.

BERNARD: All right.

TOURE: It's called, "I, Alec Baldwin," and it's amazing.

COLLINS: Yes, that's for a whole another show.

TOURE: Is it great?

BERNARD: We'll dedicate another pop for that.

COLLINS: Jessi, we're going to stick with you here now. "I Love the '90s." KLEIN: Yes.

COLLINS: It's going to debut on VH1 on Monday.

KLEIN: Yes, it's new.

COLLINS: I'm trying to think of stuff in the '90s. It feels like a long time ago. "90210" is the only thing that comes to mind.

KLEIN: Yes, "90210."

TOURE: "Prada."

KLEIN: "Prada." You know, some people are criticizing and saying, is it time yet, I guess, is the question, to do '90s nostalgia? And I personally think you know what? We all do genuinely miss the '90s at this point. Things are going so badly. At least during the '90s, it was a time of relative peace and prosperity. My biggest problem was I didn't get the Rachel haircut in time, and I've always regretted it.

COLLINS: Clearly that's a larger issue.

KLEIN: Yes, a really big problem. And now, you know, it seems like, well, it was only four years ago that it was the '90s, but when during that four years we've kind skirted with World War III, it seems a smidge longer. So, I'm excited for it.

BERNARD: (UNINTELLIGIBLE).

KLEIN: Yes. Yes.

TOURE: I think (UNINTELLIGIBLE). COLLINS: I think we're ready, though, to go back.

BERNARD: I think we're going to -- you know, since the nostalgia cycle is so quick, we're going to start doing I love "90-Second Pop" in like June, early June.

KLEIN: Or start doing it in the future, saying, I love 2006 in a week.

COLLINS: But really, that's a good point. I mean, what is it? What is the big thing in the '90s that people, you know, are really remembering, are really wanting to feel nostalgic about?

BERNARD: Having a president whose scandal was just a...

TOURE: Was something...

BERNARD: ... female issue.

KLEIN: Or was something that...

(CROSSTALK)

TOURE: Into a more (UNINTELLIGIBLE) time, right?

BERNARD: Yes.

TOURE: I mean, like everybody was making money and it seemed like the sky was the limit.

COLLINS: Hmm.

TOURE: You know, I mean, like anything was possible.

COLLINS: All right.

BERNARD: The anxiety level was lower.

COLLINS: All right, well, thanks, you guys. It was nice seeing all of you. Jessi, glad to see you for the first time.

KLEIN: Oh, thank you so much.

TOURE: Yea!

COLLINS: All right, Bill. Back over to you.

HEMMER: All right. Well done. Twenty minutes before the hour now.

In a moment, Ken Lay's money apparently still good at his alma mater. Andy explains ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. An uneasy connection between the University of Missouri and an alum, a famous alum, indicted former Enron boss, Ken Lay. Andy checks back in on that.

Good morning.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Good morning to you.

HEMMER: First, the markets. What's happening on a Friday?

SERWER: Ah. The sound you just heard is a relief rally. Stocks moving up this morning, finally. It's been a rocky couple of weeks.

Here we go -- 56 points on the Dow. GE moving ahead. Some comments from Jeffrey Immelt, saying that business is improving.

Same thing with Abbott Labs. That stock is up, too. Some good news there. Abbott Labs out of Abbott Park, Illinois, founded by Dr. Abbott -- Abbott.

HEMMER: The son of Mr. And Mrs.

SERWER: Yes, that's right.

COLLINS: Abbott.

SERWER: Thank you -- Abbott.

Let's talk about the University of Missouri. Hey, we have an intern from the University of Missouri here.

HEMMER: Yes, we do.

SERWER: Claire Kelly (ph).

HEMMER: Yes, Claire.

(APPLAUSE)

SERWER: Hey, Claire. How are you doing?

HEMMER: That's not her.

SERWER: Well, we have some news...

HEMMER: That's her.

COLLINS: There...

SERWER: There's Claire. Claire, this story is about the University of Missouri and has to do with Ken Lay. There's an open professorship at the University of Missouri. It's the endowed share that Ken Lay set up in 1999.

It's the Kenneth L. Lay Chair in Economics. And this happened in 1999, when Ken Lay gave the school some Enron stock, which luckily for the school it sold right away. It gave them $1.1 million.

And they've been trying to find someone to fill this post for years. And surprise, surprise, no one will take the job.

Here's a news flash. Memo to the University of Missouri: give the money back. You can't -- this is not right. Or, you should probably try to find someone who lost a lot of money at Enron, an Enron employee, a janitor who lost his life savings. That would be another nice thing to do with that money.

Or change it from a professorship of economics to a professorship of ethics. I mean, you can't just go ahead and do this thing. And the school has said they're defending it. They say he's only been indicted, he hasn't been convicted.

HEMMER: Innocent until proven.

SERWER: You can't -- you can't just -- you can't do that.

CAFFERTY: No, no.

HEMMER: And a strong defense yesterday.

SERWER: What do you think, Claire?

UNIDENTIFIED FEMALE: I'm going to go with you and say give the money back.

SERWER: Give the money -- that's probably the smart thing.

(CROSSTALK)

CAFFERTY: Why don't they send up a scholarship fund?

SERWER: Right. Good choice.

CAFFERTY: And give it to some needy kids. That way, they can keep the money...

SERWER: Poor Claire.

CAFFERTY: ... put it to good use, and not give it back to -- you're fired, Claire.

HEMMER: It's not Claire's fault. She works for free.

SERWER: That's true. You can't fire her. She's a volunteer.

HEMMER: Thank you, Andy.

SERWER: You're welcome.

HEMMER: Oh, my.

(CROSSTALK)

SERWER: Yes, my summer in New York, right, Claire? All right.

COLLINS: Be nice to my friend Claire. SERWER: Yes. She's doing a great job.

COLLINS: She is curious (ph). All right.

In the meantime, it is 45 minutes past the hour, time for a look at some of today's other news with Fredricka Whitfield in Atlanta.

Hey, Fredricka.

WHITFIELD: Hey. All right.

Well, the Senate Intelligence Committee is blaming the CIA for intelligence failures in pre-war Iraq. Sources familiar with the report say the agency is criticized for a lack of balance and for relying too much on information from Iraqi defectors. The report expected to be released in less than an hour now.

Additional charges are reportedly being filed against Army Private Lynndie England, one of the seven military soldiers accused of abusing Iraqi prisoners. Army officials reportedly saying the new charges do not involve detainees or Iraqi nationals. England is expected to face a military tribunal next week. Her attorney will be a guest on AMERICAN MORNING on Monday.

Suspected terrorists held at Guantanamo Bay in Cuba must challenge their detentions in Washington, D.C. A federal court of appeals making the ruling yesterday. It comes weeks after the U.S. Supreme Court decided that detainees should be allowed access to American courts.

The court says Washington is the right venue, because the detainees are overseas and they are suing the federal government. Until now, no specific court had been appointed to hear the challenges.

And in campaign 2004, the Democratic ticket taking New York City by storm. Senator John Kerry and Senator John Edwards are in the Big Apple this morning for two campaign breakfasts. At a celebrity fund- raiser last night, more than $7 million was raised for the Democratic Party.

Meanwhile, President Bush will be stumping in Pennsylvania today. He'll be taking a bus tour through the battleground state.

Now back to the gang. Heidi, Bill, Andy?

HEMMER: All right. Fredricka, thanks.

COLLINS: Thanks, Fredricka.

All right. We're going to check in with Jack now and the "Question of the Day." I'm scared to do that, but here we go.

SERWER: Just don't touch him.

COLLINS: Don't touch him. SERWER: No, don't touch him.

CAFFERTY: That's one of the AMERICAN MORNING rules. We have several. That's just one.

SERWER: Don't touch the merchandise.

CAFFERTY: And for those of you who wrote and said -- you know, it was a joke. All right? It was a joke. You want to touch me? Go ahead, touch me.

SERWER: Touch me in the morning.

COLLINS: I'm not going to take that invite now.

SERWER: Walk away.

CAFFERTY: If you could get a face transplant, whose face would you want? This actually turned out to be kind of fun.

Rex in Toronto writes, "Face transplants? I give up, Jack. From now on, I'm just going to answer what I think the "Question of the Day" should be. Yes, Israel should tear down the security fence."

Murray in Baton Rouge, "For one day only, I would like the face of George Bush. I would sidle over to Dick Cheney and say, 'Tell me again why we invaded Iraq.'"

And Helen in Social Circle, Georgia, writes a little poem. "I know just how homely I are, I know that my face ain't no star. But gosh, I don't mind it, because I'm behind it, it's the fellow in front gets the jar."

(LAUGHTER)

COLLINS: Wow. That was incredibly creative, Helen.

CAFFERTY: That's cute, right?

COLLINS: I'm impressed, yes.

CAFFERTY: Where is Social Circle, Georgia?

SERWER: Social Circle? West of Athens.

COLLINS: I don't know that.

HEMMER: I think it might be, actually. North of Atlanta? Safe bet.

SERWER: It probably is. West of Savannah, how about that?

CAFFERTY: Oh, yes, "IN THE MONEY." Andy and I have this tidy little business show where, among other things, we're going to take a look at significant vice presidents down through the years. That will be the first 14 seconds of the program. This is all because of the John Edwards thing.

One of the things we are going to do, though, is a segment on how cell phones have changed our society. And I might add, I don't think any for the better. So "IN THE MONEY," Saturday at 1:00, Sunday at 3:00 here on CNN.

COLLINS: All right, Jack and Andy. We'll be watching. OK.

CAFFERTY: No, you won't.

COLLINS: Yes, we will.

Still to come, a bittersweet good-bye. We'll catch up with an Iraqi boy who calls himself Joe America, and hear from the woman who went the "Extra Effort" to give him a new lease on life.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: In our weekly "Extra Effort" series, we pay tribute to those going the extra mile to help others. And this morning, we revisit a woman one a mission to save the children of war, and one of the true survivors. Here's Alina Cho.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): He roller blades, plays video games, even calls himself Joe America. In the five weeks Ali Ameer has been in America, he's even found love.

CHO (on camera): You have a girlfriend?

ALI AMEER, SURVIVOR OF WAR: Yes.

CHO (voice-over): On Saturday, Ali heads home to Iraq. Elissa Montati, who brought him here, says saying good-bye will be tough.

ELISSA MONTATI, GLOBAL MEDICAL RELIEF FUND: It's going to be very sad, because he has latched on to me as much as I have to him.

CHO: Montati heads up the Global Medical Relief Fund, a nonprofit group that helps injured children in war-torn countries find treatment in the U.S. Sounds impressive. She says it's run on a shoestring budget.

(on camera): How do you survive?

MONTATI: On a prayer.

CHO (voice-over): On a trip to Iraq last year, Montati found Ali, who lost his hand after picking up a grenade. Lost month, she brought the 14-year-old here to Shriner's Hospital in Philadelphia.

UNIDENTIFIED MALE: Up and down. CHO: Ali was fitted with a prosthetic hand free of charge. For the past several weeks, he's been learning to use it. When Ali goes home, he'll tell his family...

MONTATI: He's going to tell them that they're good people and that they help the world.

CHO: Montati is already looking ahead to the next child she hopes to bring back in September.

MONTATI: This is her picture.

CHO: A 4-year-old Iraqi girl who lost her leg when her house was bombed.

(on camera): Another child to love.

MONTATI: Another child to love. There's plenty of that to go around.

CHO (voice-over): On why she does it...

MONTATI: You can sleep at night. And the reward is something that is -- is even hard to explain.

CHO: Perhaps better in pictures. This one she'll send home with Ali. When asked what he'll miss most about America. His answer comes quick.

AMEER: Elissa.

CHO: Who he'll never forget.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

COLLINS: And you can find out more about Elissa's organization on their Web site at globalmed.org.

Coming up on CNN now, we're about half an hour away from the release of that Senate panel's report on pre-war intelligence in Iraq. CNN will bring it to you live as it happens. That's coming up with Daryn Kagan on "CNN LIVE TODAY."

For now, AMERICAN MORNING will be back in just a moment

(END VIDEO CLIP)

HEMMER: Before we get out of here, 12 short hours away from "NEWSNIGHT" with Aaron Brown. Here's Aaron with a preview of what's coming later tonight -- Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," John Edwards often speaks of his hard- scrabble background, small town South, working class family, first in his family to go to college. Tonight we hear from his folks, Bobbie and Wallace Edwards, who say, as most parents would, I think, that they are amazed and at times overwhelmed by their son's stunning success.

We'll have their story, plus all the day's top news. It's Friday. That means tabloids on the menu as well, and lots more. That's "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern.

Bill, have a good weekend.

HEMMER: All right, Aaron, thanks. And you, too, as well.

Before we get out of here, Soledad's been on vacation all week. That's a fact. But while she was on vacation, her doctor told her to take it easy a little bit, put her on bed rest.

We're not going to see her for a very long time around here for AMERICAN MORNING, but we are told that she is bored. Typical for Soledad, because she's always moving and doing something.

And we'll let you know when the twins come along. So we wish her the absolute best, and we miss her here at AMERICAN MORNING.

SERWER: Yes, indeed.

COLLINS: Yes, we do.

HEMMER: In the meantime, you're going to be seeing a whole lot more of Heidi over here, too. So welcome...

COLLINS: I'm sorry about that.

HEMMER: No, don't be sorry. You're more than welcome. So our best to Brad and Soledad. And take care and come back very, very soon.

COLLINS: I can't wait to see the babies.

HEMMER: That's right. We've got to run.

Jack...

CAFFERTY: What?

HEMMER: Have a great weekend.

CAFFERTY: Thank you, Bill.

HEMMER: I'm off next week.

SERWER: Yes.

CAFFERTY: Oh, you're on vacation.

HEMMER: Yes. CAFFERTY: The Hemmer family reunion.

HEMMER: The annual Hemmer (UNINTELLIGIBLE) gets under way tomorrow.

SERWER: Yes, oh, boy. Alert the...

(CROSSTALK)

CAFFERTY: It will be you and me, Collins.

COLLINS: Yes, and Anderson, and anybody else we can get to help.

HEMMER: You've got it.

CAFFERTY: Are you doing anybody else's shows next week? I mean, you're doing two, three a day now, aren't you?

COLLINS: No. Just that show next week. But 7:00 tonight one more.

CAFFERTY: Great.

HEMMER: Thanks. We've got to run.

COLLINS: Daryn's waiting.

HEMMER: Here's Daryn Kagan.

Hey, Daryn.

COLLINS: Hey, Daryn.

HEMMER: Happy Friday.

DARYN KAGAN, CNN ANCHOR: Happy Friday. You guys have a great day and a great weekend in New York City. Our best to Soledad and those babies.

HEMMER: Yes, for sure.

KAGAN: May they cook for about another 10 weeks.

COLLINS: Right.

KAGAN: Stay right where they are. Very good. OK. We will see you guys on Monday morning. We'll get started.