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A Hostage Crisis in Iraq Could be Nearing an End; More Terrorists Posting Their Sinister Plotlines Online

Aired July 13, 2004 - 11:00   ET

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


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


DARYN KAGAN, CNN ANCHOR: It is 11 a.m. in Washington, D.C., 8 a.m. in Redwood City, California.
At CNN World Headquarters in Atlanta, good morning, once again. I'm Daryn Kagan.

Up first this hour on CNN, a hostage crisis in Iraq could be nearing an end. And a Filipino truck driver held captive could soon be free. A diplomatic source says he will be released today.

The Manila government has been negotiating for the release for Angelo de la Cruz. For the latest, let's go to Baghdad and Michael Holmes.

Michael, hello.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Hi to you, Daryn. Yes, we still wait as does, no doubt, the family of Angelo de la Cruz, the 46-year-old truck driver, father of eight.

He was abducted. He's being held hostage. Takers have been demanding that all Filipino troops leave Iraq. What's been happening this day is, we've been told by diplomatic sources here in Baghdad that a deal had been done that he would be released today.

Well, it's now just after 7 p.m. here in Baghdad, no word of any release.

What we were told by the diplomatic source was that he had been told by intermediaries dealing with the hostages themselves that de la Cruz would be released at an undisclosed location. A lot of rumors going around about where that might be. But quite frankly, we don't know. And certainly he has not been released at this stage.

Now this follows, of course, the kidnappers' demands that the troops leave by July 20th. They were due to leave anyway in August. Now what's happened is that it appears that Manila, the Philippine government, has acquiesced to a degree.

And what we've been told by our sources is that the troops will be leaving as soon as possible. And by as soon as possible, the sources are telling us, that means before the August deadline -- the August scheduled depart date.

So that's something that's not going to please either Baghdad or Washington, both of which are very much against negotiating with hostage takers. And it would appear in this case, that it would appear that there has been some concession made to the hostage takers.

We heard earlier the Iraqi foreign minister. He was in Brussels. And he was basically saying, we don't even know if this was a criminal group. We don't know this group and to be negotiating with them is not good -- is not a good sign. It just encourages hostage taking.

However, the Philippine government has a tough, tough boat to row, actually because there are hundreds, thousands, in fact, of Filipino workers all around the Middle East. All of them send money back to their families in the Philippines. It's actually an integral part of the Philippine economy.

And to leave a father of eight who is over here making a living, leave him to hang out to dry for want of a better description would not go down well with the electorate back home. And so it appears that there has been negotiation going on but we still see no signs of de la Cruz -- Daryn?

KAGAN: Michael Holmes in Baghdad. Michael, thank you for that live report. U.S. officials certainly have tried to discourage countries from giving in to the demands of hostage takers in Iraq. Elaine Quijano is at the White House following this morning's developments.

Elaine, I would imagine the Bush administration not happy about this latest development.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, at this point, Daryn, still seeking clarification. At least that is the latest word we have from a senior Bush administration official who indicates that the White House is very much aware of the reports.

But at this point, the line is that they are still looking for some kind of clarification from the government of the Philippines. But what is interesting to note, in a statement from the senior administration official, I'll read it to you here.

Some strong words about what you just mentioned saying "while this is a decision for the Philippine government, we believe such a decision would send the wrong signal to terrorists around the globe."

Now that indicative of how much of a blow this would be to the Bush administration which, as we have said, has taken a hard line not negotiating with terrorists.

But also a surprising blow to the administration as well. There you see President Bush has stood firm with his ally there, the president of the Philippines, Gloria Arroyo on many occasions, taking time to praise her efforts in fighting the war on terrorism.

The president of the Philippines there having her own difficulties with terrorism in the southern part of that country. But this would be a blow symbolically, not necessarily in terms of manpower because we're just talking about 51 troops -- not a large contingent particularly, but symbolically, as the president of the United States hopes to keep that multinational force intact in Iraq as the roots of democracy, they hope, take hold.

This is not the kind of situation they want to see. Certainly it sends a precedent, they feel, that is not good as these days move forward in Iraq -- Daryn?

KAGAN: Elaine Quijano furthering our story for us at the White House. Thank you.

Now we move on to the ongoing mystery surrounding the U.S. Marine who vanished in Iraq and then resurfaced in Lebanon. The U.S. says the are questioning of Marine Corporal Wassef Ali Hassoun is taking longer than they thought it would.

Officials say they want a full picture of his ordeal. The Marine says he was abducted from a secure U.S. base in Iraq. But it's really not clear how he turned up in Lebanon three weeks later. He's currently at a U.S. base in Germany and he could return to the U.S. later this week.

More terrorists are posting their sinister plotlines online. Experts say that suspicious chatter in chat rooms is growing. As terrorists use the World Wide Web to spread their talk about terrorism.

Our Kelli Arena has that report.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): This Web site reads in part, "Oh, Allah destroy America and shake it."

This one says, "The decisive battle is approaching."

Such threats are not new to terror experts who scan hundreds of al Qaeda related Web sites daily, but recently some say there is more reason to worry. Experts say threats are coming with greater frequency and for more reliable sources.

EVAN KOHLMANN, GLOBAL TERRORALERT.COM: A lot of the chatter that we're seeing is not coming from unidentified, unspecified sources on Internet chat boards. It's coming from the same sources that have predicted before terrorist acts that have actually occurred.

ARENA: One such source warned of attacks in Spain three months before the bombings there in March and distributed video of the beheading of American Nick Berg. It's called Global Islamic Media.

KOHLMANN: It's now saying that the death blows in the approaching battles are coming -- that the death blows are upon us. And that these death blows will not only be horrible, but that they are sure to happen.

ARENA: Some of the potential targets mentioned include hospitals, parks, airports and houses of worship.

GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: You see many targets mentioned. And if you are involved in psychological warfare, you know that the more targets you mention, the more panic you cause and it will be harder to defend against attacks.

ARENA: What's more, Weimann says even if the postings are pure propaganda, they help terrorists accomplish their goal.

WEIMANN: I think al Qaeda knows that one of the most important values of terrorism is psychological impact. That is, you can widen the scope of the victims by enlarging it to the people who are affected psychologically.

ARENA (on camera): Officials are taking the web chatter very seriously and have reached out to a variety of experts for assistance. Many are convinced al Qaeda is prepared to strike and are intent on not missing any clues.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: The war against terror has often been paired with the war in Iraq. But a new report is expected to blast faulty British intelligence used to justify the Iraqi war. It's called the Butler Report. It is focusing on sketchy intelligence about Iraq's weapons.

It will be released to the public tomorrow. But Prime Minister Tony Blair has his copy today. Sources say it will be a critique of Blair's decision to support the invasion. Earlier, the prime minister talked about post-war Iraq.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: With the history of Saddam and what he did, not just to his own country, but to the wider world, we are better, safer, more secure without him in office.

And I think what is interesting with the transfer of sovereignty a couple of weeks ago is that you can feel the situation changing now.

It's far too early to be anything other than immensely cautious. But I think you can get a sense from Iraq that the Iraqi people know very well now the prospect they have for the future -- these terrorists and former Saddam people are actually their enemy, not people fighting a war of liberation for them.

And you've only got to imagine what the Middle East would be like if Iraq reaches the position they want to see and we want to see.

(END VIDEO CLIP)

KAGAN: Mr. Blair was asked if he thought had he been given worthless intelligence and he said, "I'm afraid I don't accept that at all."

Well back here in the U.S., political question: Did John Kerry's pick for number two help his campaign? And will a loss of confidence in George W. Bush hurt his campaign?

New poll results are in. We'll have them for you coming up.

Also, the search for evidence and remains take center stage in the Scott Peterson murder trial.

And the recording industry is taking drastic steps to stop Internet file sharing, but has it worked? Well, let's put it this way, they might want to cover up their ears.

That story when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

(STOCK MARKET UPDATE)

(COMMERCIAL BREAK)

KAGAN: A lot of rain on the West Coast -- on the East Coast. This is a watery rescue in Maryland. Cleanup continues in part of the Northeast. And this is part of the state that had a torrential day of rain. The water was about 10-feet deep on some streets.

The rain left about a dozen people homeless. It closed down roads for hours. I brought some commuter trains to a crawl. There were no reported injuries.

And the governor of New Jersey said that he plans to declare a state of emergency for the state's Burlington County. Some 13 inches of rain fell there overnight, flooding out homes, filling roads with water and breaking at least five small dams.

More than 500 people were evacuated and taken to shelters. In fact, we have with us on the phone right now Governor James McGreevey of New Jersey.

Governor, thank you for joining us.

GOV. JAMES MCGREEVEY, NEW JERSEY: Thank you very much.

We obviously had serious flooding here in New Jersey. I'm down in the Burlington County region of the state. Six towns were particularly hard hit. The state has declared Burlington County a state of emergency.

And what happened was a number of dams were severely compromised, caused the increased flooding and devastation throughout the region. And thankfully no one was seriously injured or hurt.

We still have families that are residing in schools, in high schools operating as shelters. But -- slowly but surely life is beginning to resume as normal. We have structural engineers evaluating other dams. We're concerned about 2 p.m. high tide and future breakage in dams.

But we have the situation under control. And if I could thank the National Guard, the state police and local, emergency police and fire departments.

KAGAN: Governor, let me go -- you made a lot of point there's. So I want to go over a few of them.

First of all, we're showing some aerial pictures I think of Burlington County where you're calling in from. You took an aerial tour on a helicopter of that. How would you describe what it looked like to you?

MCGREEVEY: Well, it's a mess. I mean, we're underwater.

And within the Lake district what's happened is a number of dams have been severely compromised. And that just allows the dam flow further and further downstream.

And we have a number of dams that are in a precarious position. We're concerned with the 2 p.m. high tide, that they may be compromised. And so, we're trying to clear out the dams to the greatest extent possible to allow normal water flow. And we're trying to get that done quickly.

We've already had -- we've also had a bridge collapse, and so we're trying to make sure that the structural underpinnings of under our bridges, our dams are in place in anticipation of 2 p.m. high tide.

KAGAN: My next question is about the infrastructure of your state. As you said, five small dams have failed. You have bridges that have -- might be compromised and other dams. What's the status of infrastructure in your state and why is it in such a precarious position?

MCGREEVEY: Well, I mean the status of infrastructure statewide is tremendous. I mean, we have some of the strongest infrastructure in the nation.

But what happened is many of these are private dams. Some of them are older dams. You had a confluence of 12 inches of rain and other flooding circumstances. And you know, it's an act of God and you have this breach and it just exacerbated.

But it's under control. I mean, people's homes, in certain cases, have been devastated. I've been meeting with the families. But we fully suspect we'll have everybody back in their homes by 6 p.m. this evening.

KAGAN: Well, that should be a great relief. And as you point out, incredibly, despite all the water and all the water damage, no injuries.

MCGREEVEY: Yes.

KAGAN: Good news indeed.

MCGREEVEY: And that's ultimately...

KAGAN: We wish you well.

MCGREEVEY: ... what's most important.

KAGAN: Yes.

Governor James McGreevey of New Jersey, thank you so much.

MCGREEVEY: Thanks for your time.

KAGAN: Thank you.

(WEATHER BREAK)

Meanwhile, coming up next: There have been threats, scare tactics and massive lawsuits. But when it comes to online file sharing, the beat goes on. A new report is music to the ears in the recording industry. We'll tell you about it.

(COMMERCIAL BREAK)

KAGAN: Testimony resumes in the next hour in the Scott Peterson murder trial. The focus has turned to the search for evidence inside the Peterson home. And the search for remains in San Francisco Bay.

Our Rusty Dornin is covering the trial. She is in Redwood City, California. Rusty, good morning.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Daryn, jurors got an idea of how exhaustive the search was for evidence in the Laci Peterson case. Detectives talked about searching the couple's home, their trucks, Scott Peterson's warehouse, his boat.

One detective talked about the search -- the sonar searches on San Francisco Bay, how they turned up thing like beer cans and plastic bags and sticks, claiming that most of the things they found were garbage and had absolutely nothing to do with the Laci Peterson case.

Defense attorney Mark Geragos was implying that the technology is so sophisticated, they were turning up the minor objects. Obviously, they had enough time that they could have found something -- the prosecutors claim there they were looking for homemade anchors or that kind of thing -- that they should have been able to turn those things up.

The jury also had a video tour of the house with one of the search warrants that was served just two days after Laci Peterson disappeared. It showed how they searched the front yard, the backyard, how there were no signs of entry into the house whatsoever.

Another detective just testified -- another detective testified that he was looking for blood or drops of blood. They found two spots, one in the kitchen, one on the water heater. Neither one of them turned out to be blood.

He talked about how the FBI came in with luminol. There were no signs of blood there, but they did find something that looked like blood drops on a comforter in the bedroom. But in court, they did not talk about the results of those test, whether indeed it was blood or not.

Another detective technician is expected to take the stand today. And I hate to head you off at the pass, Daryn; but the most frequently asked question, of course, right now is, is Amber Frey going to testify this week?

From everything we understand, it won't be at least until some time next week -- Daryn?

KAGAN: All right. So let me refigure my Amber Frey question. OK. Because that was my question -- I will admit that.

But why are they holding her off so long? Wasn't she actually supposed to come up even perhaps this week or earlier? Isn't the prosecution juggling their case a bit?

DORNIN: They are. And it's interesting because, you know, a lot of it last week was talking about how Scott Peterson had lied and perhaps how he wanted to cheat and did cheat on his wife and that sort of thing, and arranged his relationship with Amber Frey.

This case of the prosecutors has bounced around quite a bit. We get civilian witnesses, perhaps to talk about their relationship with Amber Frey. And then we get a number of detective witnesses to talk about the evidence.

You know, there are some analysts here who are saying that maybe they are saving her until towards the end so the jury will be left with some very powerful testimony.

KAGAN: Rusty Dornin in Redwood City, California. Rusty, thank you.

Coming up next, will it be an unconventional convention? The plans are in place for the Democrats' big days. We'll tell you what to expect in your morning wrap of politics. That's coming up.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan at the CNN Center in Atlanta. Let's check what's happening now in the news.

A diplomatic source has told CNN the Filipino hostage being held in Iraq will be released today. This comes after the Philippine government agreed to remove troops from Iraq as soon as possible.

Back here in the states, the debate over gay marriage continues. A little over an hour ago, U.S. Senator Sam Brownback held a news conference with more than 40 religious leaders. They support the proposed constitutional amendment that would outlaw same-sex marriage.

Also a short time ago on Capitol Hill, a congressional hearing on steroids and their suspected abuse by amateur athletes including adolescents. A college player, football player from an NAACP -- I keep doing this every time -- NCAA Division I school is scheduled to testify before the Senate Caucus on International Narcotics Control. He is to wear a hood to protect his identity.

A medical helicopter disappeared into a heavily wooded area of South Carolina this morning. Hospital officials say that four people on board were killed in the crash. The chopper was transporting a victim from a car accident when it went down about 50 miles northwest of Columbia. No word yet on the cause.

Turning to politics and the Democratic convention. It's now less than two weeks away in the hub of the universe. The John Kerry campaign announced this morning who will speak at the big event in Boston.

Our Judy Woodruff has details on that.

Judy, they're saying that this is not going to be your father's Democratic convention.

JUDY WOODRUFF, CNN CORRESPONDENT: That's what they're saying, Daryn.

Yes, the Kerry-Edwards campaign announced this morning that former presidents, military veterans and family members all will play roles at the Democratic convention.

On the first night, Monday July 26th, former presidents Jimmy Carter and Bill Clinton. And 2000 nominee Al Gore will address the delegates.

On Tuesday, the speakers will include Senator Edward Kennedy and John Kerry's wife, Teresa Heinz Kerry.

John Edwards will address the convention on Wednesday the 28th. He'll be introduced by his wife, Elizabeth.

And on Thursday night, Kerry himself accepts the Democratic presidential nomination after an introduction by his friend and fellow Vietnam veteran, former Senator Max Cleland.

While Kerry and Edwards are off the campaign trail today, President Bush hits the road for a two-day swing through three battleground states in the Great Lakes region.

The president will be courting rural voters today in Marquette, Michigan and in Duluth, Minnesota. Tomorrow he makes his second bus tour this year through Wisconsin. Bush narrowly lost all three of those states to Al Gore in 2000.

Illinois Republicans apparently won't have to wait much longer to find out if former Chicago Bears coach Mike Ditka will be their candidate for the U.S. Senate.

Today's Chicago "Sun Times" quotes Ditka as saying that he will decide by the end of the week. He has said similar things on camera.

(BEGIN VIDEO CLIP)

MIKE DITKA, FORMER CHICAGO BEARS HEAD COACH: There's no, no and there's no, yes. Let's just see what happens.

(END VIDEO CLIP)

WOODRUFF: If Ditka wants a chance to win over Illinois voters, it looks as if he'll first have to win over his own wife. Last Friday, Diana Ditka told the "Sun Times," if he decides to do it, I'd divorce him.

It doesn't get any clearer than that. Well the debate continues here in Washington over a proposed constitutional amendment to ban same-sex marriage. This afternoon, I'll talk with a veteran of the Christian Conservative Movement, Paul Weyrich, about what he thinks about the Republican effort to change the constitution.

I'll have that plus much more when I go "INSIDE POLITICS" at 3:30 p.m. Eastern.

But for right now, back to Daryn in Atlanta.

KAGAN: I think the one you have to interview is Mrs. Ditka. That's a woman who knows to how say what she thinks. Doesn't she?

WOODRUFF: We'd like to speak with her.

KAGAN: Absolutely, Mrs. Ditka, call in.

Judy, thank you. We'll see you later today.

WOODRUFF: Thanks, Daryn.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 13, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: It is 11 a.m. in Washington, D.C., 8 a.m. in Redwood City, California.
At CNN World Headquarters in Atlanta, good morning, once again. I'm Daryn Kagan.

Up first this hour on CNN, a hostage crisis in Iraq could be nearing an end. And a Filipino truck driver held captive could soon be free. A diplomatic source says he will be released today.

The Manila government has been negotiating for the release for Angelo de la Cruz. For the latest, let's go to Baghdad and Michael Holmes.

Michael, hello.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Hi to you, Daryn. Yes, we still wait as does, no doubt, the family of Angelo de la Cruz, the 46-year-old truck driver, father of eight.

He was abducted. He's being held hostage. Takers have been demanding that all Filipino troops leave Iraq. What's been happening this day is, we've been told by diplomatic sources here in Baghdad that a deal had been done that he would be released today.

Well, it's now just after 7 p.m. here in Baghdad, no word of any release.

What we were told by the diplomatic source was that he had been told by intermediaries dealing with the hostages themselves that de la Cruz would be released at an undisclosed location. A lot of rumors going around about where that might be. But quite frankly, we don't know. And certainly he has not been released at this stage.

Now this follows, of course, the kidnappers' demands that the troops leave by July 20th. They were due to leave anyway in August. Now what's happened is that it appears that Manila, the Philippine government, has acquiesced to a degree.

And what we've been told by our sources is that the troops will be leaving as soon as possible. And by as soon as possible, the sources are telling us, that means before the August deadline -- the August scheduled depart date.

So that's something that's not going to please either Baghdad or Washington, both of which are very much against negotiating with hostage takers. And it would appear in this case, that it would appear that there has been some concession made to the hostage takers.

We heard earlier the Iraqi foreign minister. He was in Brussels. And he was basically saying, we don't even know if this was a criminal group. We don't know this group and to be negotiating with them is not good -- is not a good sign. It just encourages hostage taking.

However, the Philippine government has a tough, tough boat to row, actually because there are hundreds, thousands, in fact, of Filipino workers all around the Middle East. All of them send money back to their families in the Philippines. It's actually an integral part of the Philippine economy.

And to leave a father of eight who is over here making a living, leave him to hang out to dry for want of a better description would not go down well with the electorate back home. And so it appears that there has been negotiation going on but we still see no signs of de la Cruz -- Daryn?

KAGAN: Michael Holmes in Baghdad. Michael, thank you for that live report. U.S. officials certainly have tried to discourage countries from giving in to the demands of hostage takers in Iraq. Elaine Quijano is at the White House following this morning's developments.

Elaine, I would imagine the Bush administration not happy about this latest development.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, at this point, Daryn, still seeking clarification. At least that is the latest word we have from a senior Bush administration official who indicates that the White House is very much aware of the reports.

But at this point, the line is that they are still looking for some kind of clarification from the government of the Philippines. But what is interesting to note, in a statement from the senior administration official, I'll read it to you here.

Some strong words about what you just mentioned saying "while this is a decision for the Philippine government, we believe such a decision would send the wrong signal to terrorists around the globe."

Now that indicative of how much of a blow this would be to the Bush administration which, as we have said, has taken a hard line not negotiating with terrorists.

But also a surprising blow to the administration as well. There you see President Bush has stood firm with his ally there, the president of the Philippines, Gloria Arroyo on many occasions, taking time to praise her efforts in fighting the war on terrorism.

The president of the Philippines there having her own difficulties with terrorism in the southern part of that country. But this would be a blow symbolically, not necessarily in terms of manpower because we're just talking about 51 troops -- not a large contingent particularly, but symbolically, as the president of the United States hopes to keep that multinational force intact in Iraq as the roots of democracy, they hope, take hold.

This is not the kind of situation they want to see. Certainly it sends a precedent, they feel, that is not good as these days move forward in Iraq -- Daryn?

KAGAN: Elaine Quijano furthering our story for us at the White House. Thank you.

Now we move on to the ongoing mystery surrounding the U.S. Marine who vanished in Iraq and then resurfaced in Lebanon. The U.S. says the are questioning of Marine Corporal Wassef Ali Hassoun is taking longer than they thought it would.

Officials say they want a full picture of his ordeal. The Marine says he was abducted from a secure U.S. base in Iraq. But it's really not clear how he turned up in Lebanon three weeks later. He's currently at a U.S. base in Germany and he could return to the U.S. later this week.

More terrorists are posting their sinister plotlines online. Experts say that suspicious chatter in chat rooms is growing. As terrorists use the World Wide Web to spread their talk about terrorism.

Our Kelli Arena has that report.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): This Web site reads in part, "Oh, Allah destroy America and shake it."

This one says, "The decisive battle is approaching."

Such threats are not new to terror experts who scan hundreds of al Qaeda related Web sites daily, but recently some say there is more reason to worry. Experts say threats are coming with greater frequency and for more reliable sources.

EVAN KOHLMANN, GLOBAL TERRORALERT.COM: A lot of the chatter that we're seeing is not coming from unidentified, unspecified sources on Internet chat boards. It's coming from the same sources that have predicted before terrorist acts that have actually occurred.

ARENA: One such source warned of attacks in Spain three months before the bombings there in March and distributed video of the beheading of American Nick Berg. It's called Global Islamic Media.

KOHLMANN: It's now saying that the death blows in the approaching battles are coming -- that the death blows are upon us. And that these death blows will not only be horrible, but that they are sure to happen.

ARENA: Some of the potential targets mentioned include hospitals, parks, airports and houses of worship.

GABRIEL WEIMANN, U.S. INSTITUTE OF PEACE: You see many targets mentioned. And if you are involved in psychological warfare, you know that the more targets you mention, the more panic you cause and it will be harder to defend against attacks.

ARENA: What's more, Weimann says even if the postings are pure propaganda, they help terrorists accomplish their goal.

WEIMANN: I think al Qaeda knows that one of the most important values of terrorism is psychological impact. That is, you can widen the scope of the victims by enlarging it to the people who are affected psychologically.

ARENA (on camera): Officials are taking the web chatter very seriously and have reached out to a variety of experts for assistance. Many are convinced al Qaeda is prepared to strike and are intent on not missing any clues.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

KAGAN: The war against terror has often been paired with the war in Iraq. But a new report is expected to blast faulty British intelligence used to justify the Iraqi war. It's called the Butler Report. It is focusing on sketchy intelligence about Iraq's weapons.

It will be released to the public tomorrow. But Prime Minister Tony Blair has his copy today. Sources say it will be a critique of Blair's decision to support the invasion. Earlier, the prime minister talked about post-war Iraq.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: With the history of Saddam and what he did, not just to his own country, but to the wider world, we are better, safer, more secure without him in office.

And I think what is interesting with the transfer of sovereignty a couple of weeks ago is that you can feel the situation changing now.

It's far too early to be anything other than immensely cautious. But I think you can get a sense from Iraq that the Iraqi people know very well now the prospect they have for the future -- these terrorists and former Saddam people are actually their enemy, not people fighting a war of liberation for them.

And you've only got to imagine what the Middle East would be like if Iraq reaches the position they want to see and we want to see.

(END VIDEO CLIP)

KAGAN: Mr. Blair was asked if he thought had he been given worthless intelligence and he said, "I'm afraid I don't accept that at all."

Well back here in the U.S., political question: Did John Kerry's pick for number two help his campaign? And will a loss of confidence in George W. Bush hurt his campaign?

New poll results are in. We'll have them for you coming up.

Also, the search for evidence and remains take center stage in the Scott Peterson murder trial.

And the recording industry is taking drastic steps to stop Internet file sharing, but has it worked? Well, let's put it this way, they might want to cover up their ears.

That story when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

(STOCK MARKET UPDATE)

(COMMERCIAL BREAK)

KAGAN: A lot of rain on the West Coast -- on the East Coast. This is a watery rescue in Maryland. Cleanup continues in part of the Northeast. And this is part of the state that had a torrential day of rain. The water was about 10-feet deep on some streets.

The rain left about a dozen people homeless. It closed down roads for hours. I brought some commuter trains to a crawl. There were no reported injuries.

And the governor of New Jersey said that he plans to declare a state of emergency for the state's Burlington County. Some 13 inches of rain fell there overnight, flooding out homes, filling roads with water and breaking at least five small dams.

More than 500 people were evacuated and taken to shelters. In fact, we have with us on the phone right now Governor James McGreevey of New Jersey.

Governor, thank you for joining us.

GOV. JAMES MCGREEVEY, NEW JERSEY: Thank you very much.

We obviously had serious flooding here in New Jersey. I'm down in the Burlington County region of the state. Six towns were particularly hard hit. The state has declared Burlington County a state of emergency.

And what happened was a number of dams were severely compromised, caused the increased flooding and devastation throughout the region. And thankfully no one was seriously injured or hurt.

We still have families that are residing in schools, in high schools operating as shelters. But -- slowly but surely life is beginning to resume as normal. We have structural engineers evaluating other dams. We're concerned about 2 p.m. high tide and future breakage in dams.

But we have the situation under control. And if I could thank the National Guard, the state police and local, emergency police and fire departments.

KAGAN: Governor, let me go -- you made a lot of point there's. So I want to go over a few of them.

First of all, we're showing some aerial pictures I think of Burlington County where you're calling in from. You took an aerial tour on a helicopter of that. How would you describe what it looked like to you?

MCGREEVEY: Well, it's a mess. I mean, we're underwater.

And within the Lake district what's happened is a number of dams have been severely compromised. And that just allows the dam flow further and further downstream.

And we have a number of dams that are in a precarious position. We're concerned with the 2 p.m. high tide, that they may be compromised. And so, we're trying to clear out the dams to the greatest extent possible to allow normal water flow. And we're trying to get that done quickly.

We've already had -- we've also had a bridge collapse, and so we're trying to make sure that the structural underpinnings of under our bridges, our dams are in place in anticipation of 2 p.m. high tide.

KAGAN: My next question is about the infrastructure of your state. As you said, five small dams have failed. You have bridges that have -- might be compromised and other dams. What's the status of infrastructure in your state and why is it in such a precarious position?

MCGREEVEY: Well, I mean the status of infrastructure statewide is tremendous. I mean, we have some of the strongest infrastructure in the nation.

But what happened is many of these are private dams. Some of them are older dams. You had a confluence of 12 inches of rain and other flooding circumstances. And you know, it's an act of God and you have this breach and it just exacerbated.

But it's under control. I mean, people's homes, in certain cases, have been devastated. I've been meeting with the families. But we fully suspect we'll have everybody back in their homes by 6 p.m. this evening.

KAGAN: Well, that should be a great relief. And as you point out, incredibly, despite all the water and all the water damage, no injuries.

MCGREEVEY: Yes.

KAGAN: Good news indeed.

MCGREEVEY: And that's ultimately...

KAGAN: We wish you well.

MCGREEVEY: ... what's most important.

KAGAN: Yes.

Governor James McGreevey of New Jersey, thank you so much.

MCGREEVEY: Thanks for your time.

KAGAN: Thank you.

(WEATHER BREAK)

Meanwhile, coming up next: There have been threats, scare tactics and massive lawsuits. But when it comes to online file sharing, the beat goes on. A new report is music to the ears in the recording industry. We'll tell you about it.

(COMMERCIAL BREAK)

KAGAN: Testimony resumes in the next hour in the Scott Peterson murder trial. The focus has turned to the search for evidence inside the Peterson home. And the search for remains in San Francisco Bay.

Our Rusty Dornin is covering the trial. She is in Redwood City, California. Rusty, good morning.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Daryn, jurors got an idea of how exhaustive the search was for evidence in the Laci Peterson case. Detectives talked about searching the couple's home, their trucks, Scott Peterson's warehouse, his boat.

One detective talked about the search -- the sonar searches on San Francisco Bay, how they turned up thing like beer cans and plastic bags and sticks, claiming that most of the things they found were garbage and had absolutely nothing to do with the Laci Peterson case.

Defense attorney Mark Geragos was implying that the technology is so sophisticated, they were turning up the minor objects. Obviously, they had enough time that they could have found something -- the prosecutors claim there they were looking for homemade anchors or that kind of thing -- that they should have been able to turn those things up.

The jury also had a video tour of the house with one of the search warrants that was served just two days after Laci Peterson disappeared. It showed how they searched the front yard, the backyard, how there were no signs of entry into the house whatsoever.

Another detective just testified -- another detective testified that he was looking for blood or drops of blood. They found two spots, one in the kitchen, one on the water heater. Neither one of them turned out to be blood.

He talked about how the FBI came in with luminol. There were no signs of blood there, but they did find something that looked like blood drops on a comforter in the bedroom. But in court, they did not talk about the results of those test, whether indeed it was blood or not.

Another detective technician is expected to take the stand today. And I hate to head you off at the pass, Daryn; but the most frequently asked question, of course, right now is, is Amber Frey going to testify this week?

From everything we understand, it won't be at least until some time next week -- Daryn?

KAGAN: All right. So let me refigure my Amber Frey question. OK. Because that was my question -- I will admit that.

But why are they holding her off so long? Wasn't she actually supposed to come up even perhaps this week or earlier? Isn't the prosecution juggling their case a bit?

DORNIN: They are. And it's interesting because, you know, a lot of it last week was talking about how Scott Peterson had lied and perhaps how he wanted to cheat and did cheat on his wife and that sort of thing, and arranged his relationship with Amber Frey.

This case of the prosecutors has bounced around quite a bit. We get civilian witnesses, perhaps to talk about their relationship with Amber Frey. And then we get a number of detective witnesses to talk about the evidence.

You know, there are some analysts here who are saying that maybe they are saving her until towards the end so the jury will be left with some very powerful testimony.

KAGAN: Rusty Dornin in Redwood City, California. Rusty, thank you.

Coming up next, will it be an unconventional convention? The plans are in place for the Democrats' big days. We'll tell you what to expect in your morning wrap of politics. That's coming up.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan at the CNN Center in Atlanta. Let's check what's happening now in the news.

A diplomatic source has told CNN the Filipino hostage being held in Iraq will be released today. This comes after the Philippine government agreed to remove troops from Iraq as soon as possible.

Back here in the states, the debate over gay marriage continues. A little over an hour ago, U.S. Senator Sam Brownback held a news conference with more than 40 religious leaders. They support the proposed constitutional amendment that would outlaw same-sex marriage.

Also a short time ago on Capitol Hill, a congressional hearing on steroids and their suspected abuse by amateur athletes including adolescents. A college player, football player from an NAACP -- I keep doing this every time -- NCAA Division I school is scheduled to testify before the Senate Caucus on International Narcotics Control. He is to wear a hood to protect his identity.

A medical helicopter disappeared into a heavily wooded area of South Carolina this morning. Hospital officials say that four people on board were killed in the crash. The chopper was transporting a victim from a car accident when it went down about 50 miles northwest of Columbia. No word yet on the cause.

Turning to politics and the Democratic convention. It's now less than two weeks away in the hub of the universe. The John Kerry campaign announced this morning who will speak at the big event in Boston.

Our Judy Woodruff has details on that.

Judy, they're saying that this is not going to be your father's Democratic convention.

JUDY WOODRUFF, CNN CORRESPONDENT: That's what they're saying, Daryn.

Yes, the Kerry-Edwards campaign announced this morning that former presidents, military veterans and family members all will play roles at the Democratic convention.

On the first night, Monday July 26th, former presidents Jimmy Carter and Bill Clinton. And 2000 nominee Al Gore will address the delegates.

On Tuesday, the speakers will include Senator Edward Kennedy and John Kerry's wife, Teresa Heinz Kerry.

John Edwards will address the convention on Wednesday the 28th. He'll be introduced by his wife, Elizabeth.

And on Thursday night, Kerry himself accepts the Democratic presidential nomination after an introduction by his friend and fellow Vietnam veteran, former Senator Max Cleland.

While Kerry and Edwards are off the campaign trail today, President Bush hits the road for a two-day swing through three battleground states in the Great Lakes region.

The president will be courting rural voters today in Marquette, Michigan and in Duluth, Minnesota. Tomorrow he makes his second bus tour this year through Wisconsin. Bush narrowly lost all three of those states to Al Gore in 2000.

Illinois Republicans apparently won't have to wait much longer to find out if former Chicago Bears coach Mike Ditka will be their candidate for the U.S. Senate.

Today's Chicago "Sun Times" quotes Ditka as saying that he will decide by the end of the week. He has said similar things on camera.

(BEGIN VIDEO CLIP)

MIKE DITKA, FORMER CHICAGO BEARS HEAD COACH: There's no, no and there's no, yes. Let's just see what happens.

(END VIDEO CLIP)

WOODRUFF: If Ditka wants a chance to win over Illinois voters, it looks as if he'll first have to win over his own wife. Last Friday, Diana Ditka told the "Sun Times," if he decides to do it, I'd divorce him.

It doesn't get any clearer than that. Well the debate continues here in Washington over a proposed constitutional amendment to ban same-sex marriage. This afternoon, I'll talk with a veteran of the Christian Conservative Movement, Paul Weyrich, about what he thinks about the Republican effort to change the constitution.

I'll have that plus much more when I go "INSIDE POLITICS" at 3:30 p.m. Eastern.

But for right now, back to Daryn in Atlanta.

KAGAN: I think the one you have to interview is Mrs. Ditka. That's a woman who knows to how say what she thinks. Doesn't she?

WOODRUFF: We'd like to speak with her.

KAGAN: Absolutely, Mrs. Ditka, call in.

Judy, thank you. We'll see you later today.

WOODRUFF: Thanks, Daryn.

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