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American Morning
9/11 Commission Decides On Creating New Intelligence Posts; California Wildfires Rage; Government Decision To Expand Medicare Treatment For Obesity
Aired July 19, 2004 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Can all of America's spies fit under one roof? The drive begins in Washington to overhaul intelligence agencies.
Will the winds die down in California? Fires burning very close to hundreds of homes there.
Twenty people stranded in a helium-filled balloon. How a windy day in Baltimore almost turned into disaster.
And the heart skipping a beat on the NASCAR circuit. The son of the late Dale Earnhardt now recovering from a terrifying crash -- all this morning here 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, everyone, and welcome to Monday. Soledad resting in the last weeks of her pregnancy. Heidi Collins here with us in New York.
Good morning.
HEIDI COLLINS, CNN ANCHOR: Good morning. Welcome back.
HEMMER: Thank you. How was last week?
COLLINS: Last week was fine. It was terribly sad without you.
HEMMER: Was it really? And then, Cafferty of course, too.
COLLINS: Yes -- both of you.
JACK CAFFERTY, CNN ANCHOR: And last week you were telling Anderson how great it was to have him here.
HEMMER: What's the story, Collins?
A lot of news this morning. Good to be back, by the way, and good to be with you.
A lot to talk about regarding the CIA. America's top intelligence officials challenging the proposals from the 9/11 Commission. The idea being floated is to create a cabinet-level post to manage intelligence gathering. We'll look much deeper into this question, also talk to a former CIA chief about the practicality of all of that ahead in a few moments.
COLLINS: Also this morning, Health and Human Services Chairman Tommy Thompson will be with us talking about a government decision to expand Medicare treatment for obesity. Millions of people could be affected. Why is now the time for the change after all of the discussion about it?
HEMMER: Also, we'll get an inside story on questioning prisoners in the war on terror from a man who conducted interrogations. We'll ask him about the techniques that worked, which ones that did not, and how far is too far, as well.
COLLINS: Hi, Jack.
CAFFERTY: Good morning, Heidi.
COLLINS: I've missed you.
CAFFERTY: Good to see you, darling.
The governator's got them all stirred up out in California. Arnold Schwarzenegger referred to a bunch of Democratic legislators as "girlie-men." We'll take a look at the fall out from that. Needless to say, there is some.
HEMMER: Wow. I missed that when I was at the beach last week. But you are here to fill me in.
CAFFERTY: That's my job.
HEMMER: Welcome back, Jack.
Just days before the 9/11 commission unveils its final report, the acting CIA director delivers a preemptive strike against one of the key recommendations --A super sleuth to oversee U.S. intelligence. In a moment, reaction from a former CIA director. But first, Suzanne Malveaux has this story from Washington.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Abraham Scott lost his beloved wife Janice at the Pentagon September 11th. But one thing he wants to hear from the commission investigating the attacks is...
ABRAHAM SCOTT, LOST WIFE ON 9/11: What's being done and what needs to be done in order to prevent this from happening again.
MALVEAUX: Thursday the commission will release its final report and sources familiar with it say it will call for a new national director of intelligence, a cabinet-level official to report directly to the president and oversee all 15 intelligence agencies. The goal: better prepare for a terrorist attack by consolidating information. But the proposal is already drawing fire from the Pentagon and CIA who stand to lose authority over the estimated $40 billion in the annual intelligence budget. The CIA's acting director argues it's his job to overhaul the agency.
JOHN MCLAUGHLIN, ACTING CIA DIRECTOR: I see the director of central intelligence as someone who is able to do that and empowered to do so under the National Security Act of 1947.
MALVEAUX: Members of the Senate Intelligence Committee are divided.
SEN. DICK DURBIN (D), ILLINOIS: I'm open to suggestions for reform for one basic reason. Intelligence is our first line of defense in any war on terrorism. Our intelligence failed us before the invasion of Iraq.
SEN. SAXBY CHAMBLISS (R), GEORGIA: Now, if you just add another level of bureaucracy -- and that's exactly what Dick's talking about here -- that we need to look at, if you just add that, we're not going to do anything.
MALVEAUX: Abraham Scott who lost so much on September 11th wants more.
SCOTT: We need to bring in new blood that will get the job done.
MALVEAUX (on camera): Privately sources with the inner agency talks on creating a intelligence czar say there is such fierce opposition that the Bush administration is nowhere near reaching a consensus on intelligence reform.
Suzanne Malveaux, CNN, the White House.
(END VIDEOTAPE)
HEMMER: Stansfield Turner served as CIA director under President Jimmy Carter. He is our guest now, live in D.C. Good morning to you sir. Thank you for your time here.
STANSFIELD TURNER, FMR. CIA DIRECTOR: Surely.
HEMMER: Is this cabinet-level intelligence chief the answer?
TURNER: It's a very important step. The administration thus far has done very little to change our intelligence apparatus to make it more efficient since 9/11. This is a big step that should be taken. Every commission that's looked at this since 9/11 has come up with this kind of a recommendation.
HEMMER: That opinion is quite contrary to what the acting CIA director said on the talk shows on Sunday. He said the intelligence community of today is not the same as the intelligence community as 9/11, indicating in the past two-and-a-half years there have been substantial changes. Why do you not see it the same way? TURNER: John McLaughlin is a man for whom I have a lot of respect for. At the same time, his reaction to this is both understandable and predictable.
He's a CIA professional, and today the CIA head is the same person as the director of central intelligence who runs, supposedly, the entire community of intelligence agencies, 15 of them, that gives the CIA director direct access to the president because the director of central intelligence reports to the president.
So, separating the CIA job from the director's job puts the CIA one echelon down and the CIA people don't like that.
Secondly, the acting director's reaction was predictable because if you read the Senate intelligence committee's report of last week, he and director Tenet spent rather little of their effort on managing the intelligence community as the job of director focused most of their attention on the running of the CIA and did a good job of it.
I happen to think that you can't do both of those jobs, run the community well, run the CIA well with one person. It just is more than an individual can handle.
HEMMER: But sir...
TURNER: And on top of that...
HEMMER: Yes, go ahead.
TURNER: One last point, Bill -- quickly.
That is, if you are managing the community, 15 agencies, and you are also the head of one of them you look like you have a compromise here that you are not objective because you are managing your agency and also the others.
HEMMER: Ultimately, though, is this the kind of change that could have prevented 9/11?
TURNER: It could certainly have helped because right after 9/11, we looked into this as a nation and we found that the CIA wasn't talking with the FBI. The FBI wasn't talking with the CIA.
Lots of clues did not get brought together in one place. And all we've done since 9/11 is create some kind of a committee to try to bring those clues together; and I can assure you from being a long- time bureaucrat that committees are not long-term answers to problems.
HEMMER: Stansfield Turner, former CIA director under Jimmy Carter, our guest in D.C. Thank you for your time.
A bit later we'll talk with James Woolsey, his opinion on this same reaction as well -- Heidi?
COLLINS: Hundreds of homes are in the path of a wildfire northwest of Los Angeles. Powerful shifting winds have made the fire difficult to fight. And as Donna Tetreault reports, the winds are also making it hard to predict where the fire is headed.
(BEGIN VIDEOTAPE)
DONNA TETREAULT, CNN CORRESPONDENT (voice-over): The past 24 hours have been a roller coaster. In the morning, flames swept through the Santa Clarita mountains, but families were headed back home. Mandatory evacuations were lifted.
PATTY KELLY, EVACUEE: We love our house here and the area. It's just so scary because you just don't know.
TETREAULT: Only hours later, churchgoers heard a different story.
PAUL SPIKER, EVACUEE: There was an announcement saying everybody that lives up in the Sand Canyon area, you are being evacuated to go home or whatever, do what you need to do.
CAPT. DENNIS CROSS, L.A. COUNTY FIRE DEPARTMENT: The fire is doing a lot of really, really sporadic things. It's spotting way ahead of its itself.
TETREAULT: Getting out safely proved to be a challenge for the Gomez family. They've been part of this community since 1977 and say they knew this day would come.
JOSEPH GOMEZ, EVACUEE: I think we've been anticipating it from the obvious, the fires the smoke and things that are going on.
TETREAULT: As the afternoon heat rose into the 90s and the high winds remained unpredictable, police pulled hundreds of people to evacuate.
CYNTHIA GARRICK, EVACUEE: They are pretty much coming in saying mandatory evacuation at this point so you need to move out.
CROSS: It's going to have its way. Its going to continue to chew up critically dry fuel and burn, and unfortunately that's just the nature of the beast here in Southern California.
TETREAULT (on camera): Investigators say a person caused this fire. Whether or not it was accidental or intentional is still unknown, but an arson investigation is open.
Donna Tetreault for CNN, Santa Clarita, California.
(END VIDEOTAPE)
COLLINS: So, could the weather help firefighters or not? Chad Myers is at the CNN Center now with the very latest on all of this. Keep looking at that video and it's always so upsetting, Chad.
CHAD MYERS, CNN METEOROLOGIST: Yes, a lot of underbrush there, an awful lot of sage, an awful lot of things that are very dry right on the ground and then you even have a little bit of a tree top fire as well. Here's what the wildfire scene looks like. Here's a locator for you. Here's Los Angeles right here. You actually have to go up the I-5 almost up to Lebec to actually find that fire. But it is the strongest and really the most important fire in California right now. Here's the forecast.
(WEATHER BREAK)
MYERS: Heidi, back to you.
COLLINS: All right, Chad. Thanks for that.
A major shift in Medicare policy could make a big difference for Americans who are dangerously overweight. The government healthcare program has opened a door to coverage for certain anti-obesity treatments.
Human -- Health and Human Services Secretary Tommy Thompson is joining us now from the White House to explain these changes.
Secretary Thompson, thanks so much for being with us this morning.
TOMMY THOMPSON, HEALTH AND HUMAN SERVICES SECRETARY: My pleasure.
COLLINS: The key here is that the government is now saying that obesity is not a disease. Why the change?
The big change is that we've got such a huge problem in America with people that are overweight and obese. Sixty-five percent of Americans are either in one of those two categories.
And the kind of diseases that are affected by obesity such as strokes and heart attacks, and some cancers are causing such a tremendous problem, we decided we have to do something about it. And that's why the government has decided to change its policy, Heidi.
COLLINS: How soon do you think we can expect to see this impact on the Medicare coverage?
THOMPSON: Well, you're going to see an impact very quickly because we're changing the coverage right now. It's going to be based upon individual cases. It's going to be for the first time doctors are going to be able to analyze an individual and find out what sort of treatment he needs -- and he or she needs -- and then they can apply for reimbursement through Medicare.
And Medicare will analyze each one of these cases on an individual basis based upon the medical and scientific evidence. We'll also going to empanel a group of experts this fall to take a look at the whole subject to see how we might be able to combat it even more effectively than we have in the past.
COLLINS: You've mentioned these weight loss tools. And we've heard a lot in the past, oh gosh, several months about gastric bypass and several other different types of treatment, so what do you expect Medicare will cover on that front?
THOMPSON: Well, we're going to be covering things on an individual basis. A doctor's going to analyze somebody that's morbidly obese and decide maybe that they're going to have to have an operation, and they'll submit that kind of information in Medicare.
And we will take a look at it and more than likely we'll be covering some of those because we have such a huge problem. $118 billion in America and over 400,000 Americans died last year because of obesity related illnesses. And we want to be sure that we start solving this problem. The problem is growing as fast as our waistlines are in America.
COLLINS: Well, that being said, Secretary Thompson what do you say to critics who are really feeling strongly about taxpayers not having to pay for this type of treatment?
THOMPSON: Well the problem is that it's such a large problem already. $118 billion is growing faster than tobacco related illnesses. And it's time the government stands up and does everything we possibly can to alert Americans about the problems of obesity.
And this is one way in which we can do it. This is not the only thing we're doing. We're having a whole panoply of ideas and things that the government is doing, trying to get people to exercise more, to eat more nutrition foods, more fruits and vegetables and to take in to consideration the calorie counts. And so we're trying to do a lot of things, not just this one thing.
COLLINS: All right. Quickly before we let you go, sir I want to ask you a little bit about a "TIME" magazine report that is talking about faulty intelligence and the threat that Iraq had weaponized smallpox. That whole threat was overblown, they are saying.
Will you continue to push for civilian smallpox vaccinations?
THOMPSON: We're going to continue to alert Americans about the problem of smallpox. We also, of course, have got in our inventory, 400 million doses so that we can vaccinate every man, woman and child.
We put in plans in which if smallpox did break out we could vaccinate every American within 10 days. So, we're doing all of the preparatory work, but we're not actually pushing as hard to vaccinate people at this point in time.
COLLINS: OK. Understood. Health and Human Services Secretary Tommy Thompson, thanks so much for being with us this morning.
THOMPSON: My pleasure Heidi.
HEMMER: Well, 14 minutes past the hour now.
Kobe Bryant expected back in a Colorado courtroom today. Among the issues to be talked about there, whether or not to allow cameras in the courtroom when that case begins. Adrian Baschuk live in Eagle Colorado with us there this morning. Good morning. ADRIAN BASCHUK, CNN CORREPONDENT: Good morning to you, Bill.
With just five-and-a-half weeks left to this trial getting under way here in Eagle, the pieces are finally falling into place. Nine hundred ninety-nine jury summons were sent out to Eagle residents last week. Still, some major issues remain unresolved.
(BEGIN VIDEOTAPE)\
BASCHUK (voice-over): Cameras have twice been allowed to record the appearances of basketball star Kobe Bryant in the courtroom where he will be tried on the charge of sexual assault. Today the judge will hear arguments on whether to ban cameras from the trial itself.
LARRY POZNER, CRIMINAL DEFENSE ATTORNEY: Traditionally, Colorado judges have allowed cameras in the courtroom for trial. So, the history is in favor of cameras. But this is an instance where both sides say don't do it.
BASCHUK: The prosecution argues that a camera's presence violates the alleged victim's privacy. Today her attorneys will ask the judge to ban the filing of court documents online amid claims the defense is using this practice to smear Bryant's accuser.
CYNTHIA STONE, COLORADO COALITION AGAINST SEXUAL ASSAULT: Many times they have put out motions that were filled with rumor, innuendo and speculation about this young woman, none of which had been proven yet to be true.
BASCHUK: Last week, Judge Terry Ruckriegle ruled that prosecutors may admit as trial evidence Kobe Bryant's t-shirt which they allege is stained with the blood of his accuser. Also, the jury will hear statements Bryant made to police before his arrest that were being tape recorded without his knowledge.
CRAIG SILVERMAN, FORMER DENVER DEPUTY D.A.: No one knows for sure what Kobe Bryant said on that tape. We do know he said things that he now regrets. That's why he moved to suppress it. Is it incriminating or just embarrassing?
BASCHUK: A question that won't be answered until the trial gets under way August 27th.
(END VIDEOTAPE)
BASCHUK (on camera): Now, if you are wondering whether or not this case will be televised, I can tell you this, cameras have never -- again never -- been allowed in a Colorado courtroom to broadcast a sexual assault case -- Bill?
HEMMER: Adrian, thanks. Adrian Baschuk in Colorado -- Heidi?
A harrowing ride for some sightseers at a Baltimore children's museum. A balloon took 20 people on the unexpected ride of their lives Saturday. High winds causing mechanical malfunction with the balloon's retracting cable, stranding the riders in a gondola some 350 feet above downtown Baltimore.
Strong winds slammed the balloon into the roof of the city's police department.
(BEGIN VIDEO CLIP)
KEVIN PHELPS, BALLOON PASSENGER: I thought we were going to die, you know.
UNIDENTIFIED FEMALE: I thought we were going to get killed or get hurt.
CHRIS GORMAN, BALLOON OPERATOR: I just told them, you know, stay down, you know, in case another gust comes. You know, just be calm.
I mean, the kids -- you know, the kids were crying. We had people throwing up and people, you know, were like -- I mean, they were just -- I mean it was wild.
(END VIDEOTAPE)
COLLINS: Four riders suffered minor injuries. The ride at Discovery Children's Museum has operated safely for years.
And coming up in about an hour on AMERICAN MORNING, we'll talk to some parents, Mike and Kathy McGonigle. They were trapped on that frightening balloon ride with their two children, ages two and four. That's coming up at 8:15 right here on AMERICAN MORNING.
HEMMER: What a weekend it was for them, oh my.
Checking other news. Daryn Kagan at the CNN Center now starting off with Iraq. Daryn, good morning to you on this Monday.
DARYN KAGAN, CNN CORRESPONDENT: Bill, good morning. Good to see you back from vacation. Let's start with Iraq.
As you said, a morning suicide bombing in Baghdad tops our headlines. Iraqi officials say that at least nine people have been killed, dozens of others injured.
The attack left a crater about 10 feet deep outside of a police station in the city's Southern district. This violence coincides with a new threat against interim Prime Minister Ayad Allawi. According to an Islamic Web site a militant group is offering a $280,000 reward for killing Allawi.
Charles Jenkins, the former U.S. soldier accused of defecting to North Korea is resting in a Tokyo hospital. Jenkins arrived over the weekend with his Japanese wife and their daughters. He is preparing to undergo medical treatment for abdominal problems. The U.S. had said it would not seek his extradition while he is in the hospital.
A week from today Democrats open their convention that will formally nominate John Kerry for president. This morning we get our first look inside of Boston's FleetCenter. That's where the convention will be held. The Kerry-Edwards campaign has also released an itinerary for the candidates leading up the big show in Bean town. In our next hour, we will talk with John Kerry's daughter Vanessa about what we can expect next week.
In health news, there is some hope in the battle against Alzheimer's disease. New research suggests the drug Aricept may be able to ward off the onset of the disease by six months. Despite that delay, though, the drug does not cut the risk of contracting Alzheimer's. A doctor at the Mayo clinic calls the findings "a foot in the door to more effective treatment."
And finally, it did take four extra holes, but golfer Todd Hamilton is the British open champion. Hamilton shot all pars yesterday in the four-hole playoff with Ernie Els. Els did bogey one hole giving Hamilton the one-stroke win. Hamilton and his wife, by the way, will be guests here on AMERICAN MORNING tomorrow. And Bill, I think you'll find they are pretty low key Midwestern people.
HEMMER: Yes.
KAGAN: If you saw his interview after the British open...
HEMMER: Yes.
KAGAN: ... he kind of just -- matter of fact, he said he was just happy to win his tour card.
HEMMER: Yes. Listen, he was steady throughout that entire tournament, very little reaction shown. When he bogeyed 18, though, I thought he was done.
KAGAN: Yes. Against Ernie Els, a champion like that who had won the open - Well, of course we could talk all day about this. You have other things to do.
HEMMER: They'll be here tomorrow, and they can talk about it.
KAGAN: Look forward to it.
HEMMER: Thank you, Daryn. Talk to you a bit later this morning.
Back to Jack now and the "Question of the Day." Good morning.
CAFFERTY: How are you doing? Got to love this story.
Arnold Schwarzenegger saying -- are you OK?
One of our floor guys just hit his head on one of the cameras.
Arnold Schwarzenegger says -- you need to be shorter.
Arnold Schwarzenegger says he's not sorry for calling a bunch of Democrats "girlie-men" out there in California over the weekend. He used the term to refer to Democrats who he said were delaying the state budget.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: If they don't have the guts to come out here in front of you and say, I don't want to represent you -- I want to represent those special interests, the unions, the trial lawyers. I want them to make millions of dollars, I don't want to represent you -- If they don't have the guts, I call them girlie-men. We should go back to the table and we should fix the budget.
(END VIDEO CLIP)
CAFFERTY: Oh, Arnold.
Critics say the remark was sexist and homophobic.
The governors spokesman says it was a forceful way of showing that legislators are wimps when they allow themselves to be pushed around by special interests.
So, the question this morning is, should Governor Schwarzenegger apologize for calling Democrats "girlie-men"?
I don't know the answer to the question, but I think it's terrific that he did it because -- and what a state to do it in, you know, out there in California.
Anyway little things happen when you are away.
HEMMER: That's exactly right.
CAFFERTY: The lord provides.
HEMMER: Yes.
CAFFERTY: It's good stuff.
HEMMER: ... from heaven.
CAFFERTY: That's right.
HEMMER: Thank you, Jack.
COLLINS: A spectacular crash on a California raceway as fire engulfs one of racing's biggest stars. NASCAR driver Dale Earnhardt, Jr. is recovering with second-degree burns after this accident yesterday during a practice run.
Earnhardt's Corvette spun and hit a barrier and then exploded after a fuel spill. The 29-year old suffered second-degree burns on his face and both legs but amazing was able to climb out of the burning wreckage.
(BEGIN VIDEO CLIP)
BORIS SAID, CAR CO-DRIVER: I mean it was frightening to see because he's a close friend and when you see something like that on TV you feel helpless. But you know, I was there in the Infineon Care Center when they brought him in. And you know, he was awake and alert.
He just was really disappointed that, you know, the car got wrecked and we couldn't race, so -- and I just kept telling him, don't worry about that. But -- I mean, he's a tough guy and he'll be back strong.
(END VIDEO CLIP)
COLLINS: Worried about finishing the race.
Earnhardt's doctors expect he'll be out of the hospital in just a few days. A burn suit he was wearing, of course, protected him pretty well.
HEMMER: Close, close call though.
All right. In a moment here on AMERICAN MORNING, cracking the secrets of al Qaeda. We'll give you an inside look at the art of interrogation. One man who got in the heads of suspected terrorists. He's written a book about it. We'll talk to him in a moment.
COLLINS: Also ahead, an unprecedented rebellion in the Middle East. Yasser Arafat sees his power crumbling. We'll take you live to Jerusalem.
Also, "Minding Your Business" today, we'll talk about why Martha Stewart is comparing herself to Nelson Mandela ahead in a moment after this.
(COMMERCIAL BREAK)
HEMMER: Welcome back, everyone. Now that Martha Stewart has been sentenced, what's next for her company? Good question for Christine Romans working for Andy Serwer this week minding everyone's business. Good morning to you.
CHRISTINE ROMANS, CNN CORRESPONDENT: Good morning.
You know her stock rallied 42 percent on Friday.
HEMMER: Up three bucks, right?
ROMANS: Up almost three bucks, you know, $12 a share, unbelievable.
But you were asking about some of the fundamentals of the company. You know, it's still losing money, this company is. And that's a problem in terms of shareholder returns.
Martha Stewart also on Friday telling investors, telling her customers, I will be back, and if you believe in my company, you know, and believe in my products, thanks for sticking with me.
According to the "Wall Street Journal," the company president, Sharon Patrick, called the outcome on Friday as good as it could be.
Of course that outcome, Martha Stewart, five months in jail and five months of home detention. She is free on appeal, but it's really a singular kind of issue for a company. This is a company called Martha Stewart Living Omnimedia. And it's a company that bears her name and its founder and chief creative force in all likelihood will be going to jail. So, it's a very interesting situation.
In the meantime, Martha Stewart is out and about giving her point of view to the media. She's told ABC that she'll get through this. And she compared herself to the 86-year-old Nelson Mandela. And then, of course, her critics very quickly saying Nelson Mandela was in jail for 27 years for trying to change apartheid in a country. She, of course, is, you know, a stock sale -- a little scandal there.
So very interesting stuff. This goes on and on. She was sentenced and still in the news.
HEMMER: We may find out more tonight then when she talks again. She'll be only here on CNN with Larry King later tonight at 9:00. And one has to wonder: If this appeal goes forward, how long is the delay before any prison time is spent anyway?
ROMANS: Interesting. And she'll be taking calls on LARRY KING tonight as well.
HEMMER: OK. Thank you, Christine. Good to see you here.
ROMANS: Yes.
HEMMER: A little later this hour?
ROMANS: Yes, absolutely.
HEMMER: OK. Here's Heidi.
COLLINS: Still to come this morning, we'll jump-start your work week with some "90-Second Pop."
The machines fight back as technology takes over your life and "I, Robot" takes over the box office.
Plus, word is Britney Spears is on a rebellious streak. All that and more in "90-Second Pop".
(COMMERCIAL BREAK)
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Aired July 19, 2004 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Can all of America's spies fit under one roof? The drive begins in Washington to overhaul intelligence agencies.
Will the winds die down in California? Fires burning very close to hundreds of homes there.
Twenty people stranded in a helium-filled balloon. How a windy day in Baltimore almost turned into disaster.
And the heart skipping a beat on the NASCAR circuit. The son of the late Dale Earnhardt now recovering from a terrifying crash -- all this morning here 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, everyone, and welcome to Monday. Soledad resting in the last weeks of her pregnancy. Heidi Collins here with us in New York.
Good morning.
HEIDI COLLINS, CNN ANCHOR: Good morning. Welcome back.
HEMMER: Thank you. How was last week?
COLLINS: Last week was fine. It was terribly sad without you.
HEMMER: Was it really? And then, Cafferty of course, too.
COLLINS: Yes -- both of you.
JACK CAFFERTY, CNN ANCHOR: And last week you were telling Anderson how great it was to have him here.
HEMMER: What's the story, Collins?
A lot of news this morning. Good to be back, by the way, and good to be with you.
A lot to talk about regarding the CIA. America's top intelligence officials challenging the proposals from the 9/11 Commission. The idea being floated is to create a cabinet-level post to manage intelligence gathering. We'll look much deeper into this question, also talk to a former CIA chief about the practicality of all of that ahead in a few moments.
COLLINS: Also this morning, Health and Human Services Chairman Tommy Thompson will be with us talking about a government decision to expand Medicare treatment for obesity. Millions of people could be affected. Why is now the time for the change after all of the discussion about it?
HEMMER: Also, we'll get an inside story on questioning prisoners in the war on terror from a man who conducted interrogations. We'll ask him about the techniques that worked, which ones that did not, and how far is too far, as well.
COLLINS: Hi, Jack.
CAFFERTY: Good morning, Heidi.
COLLINS: I've missed you.
CAFFERTY: Good to see you, darling.
The governator's got them all stirred up out in California. Arnold Schwarzenegger referred to a bunch of Democratic legislators as "girlie-men." We'll take a look at the fall out from that. Needless to say, there is some.
HEMMER: Wow. I missed that when I was at the beach last week. But you are here to fill me in.
CAFFERTY: That's my job.
HEMMER: Welcome back, Jack.
Just days before the 9/11 commission unveils its final report, the acting CIA director delivers a preemptive strike against one of the key recommendations --A super sleuth to oversee U.S. intelligence. In a moment, reaction from a former CIA director. But first, Suzanne Malveaux has this story from Washington.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Abraham Scott lost his beloved wife Janice at the Pentagon September 11th. But one thing he wants to hear from the commission investigating the attacks is...
ABRAHAM SCOTT, LOST WIFE ON 9/11: What's being done and what needs to be done in order to prevent this from happening again.
MALVEAUX: Thursday the commission will release its final report and sources familiar with it say it will call for a new national director of intelligence, a cabinet-level official to report directly to the president and oversee all 15 intelligence agencies. The goal: better prepare for a terrorist attack by consolidating information. But the proposal is already drawing fire from the Pentagon and CIA who stand to lose authority over the estimated $40 billion in the annual intelligence budget. The CIA's acting director argues it's his job to overhaul the agency.
JOHN MCLAUGHLIN, ACTING CIA DIRECTOR: I see the director of central intelligence as someone who is able to do that and empowered to do so under the National Security Act of 1947.
MALVEAUX: Members of the Senate Intelligence Committee are divided.
SEN. DICK DURBIN (D), ILLINOIS: I'm open to suggestions for reform for one basic reason. Intelligence is our first line of defense in any war on terrorism. Our intelligence failed us before the invasion of Iraq.
SEN. SAXBY CHAMBLISS (R), GEORGIA: Now, if you just add another level of bureaucracy -- and that's exactly what Dick's talking about here -- that we need to look at, if you just add that, we're not going to do anything.
MALVEAUX: Abraham Scott who lost so much on September 11th wants more.
SCOTT: We need to bring in new blood that will get the job done.
MALVEAUX (on camera): Privately sources with the inner agency talks on creating a intelligence czar say there is such fierce opposition that the Bush administration is nowhere near reaching a consensus on intelligence reform.
Suzanne Malveaux, CNN, the White House.
(END VIDEOTAPE)
HEMMER: Stansfield Turner served as CIA director under President Jimmy Carter. He is our guest now, live in D.C. Good morning to you sir. Thank you for your time here.
STANSFIELD TURNER, FMR. CIA DIRECTOR: Surely.
HEMMER: Is this cabinet-level intelligence chief the answer?
TURNER: It's a very important step. The administration thus far has done very little to change our intelligence apparatus to make it more efficient since 9/11. This is a big step that should be taken. Every commission that's looked at this since 9/11 has come up with this kind of a recommendation.
HEMMER: That opinion is quite contrary to what the acting CIA director said on the talk shows on Sunday. He said the intelligence community of today is not the same as the intelligence community as 9/11, indicating in the past two-and-a-half years there have been substantial changes. Why do you not see it the same way? TURNER: John McLaughlin is a man for whom I have a lot of respect for. At the same time, his reaction to this is both understandable and predictable.
He's a CIA professional, and today the CIA head is the same person as the director of central intelligence who runs, supposedly, the entire community of intelligence agencies, 15 of them, that gives the CIA director direct access to the president because the director of central intelligence reports to the president.
So, separating the CIA job from the director's job puts the CIA one echelon down and the CIA people don't like that.
Secondly, the acting director's reaction was predictable because if you read the Senate intelligence committee's report of last week, he and director Tenet spent rather little of their effort on managing the intelligence community as the job of director focused most of their attention on the running of the CIA and did a good job of it.
I happen to think that you can't do both of those jobs, run the community well, run the CIA well with one person. It just is more than an individual can handle.
HEMMER: But sir...
TURNER: And on top of that...
HEMMER: Yes, go ahead.
TURNER: One last point, Bill -- quickly.
That is, if you are managing the community, 15 agencies, and you are also the head of one of them you look like you have a compromise here that you are not objective because you are managing your agency and also the others.
HEMMER: Ultimately, though, is this the kind of change that could have prevented 9/11?
TURNER: It could certainly have helped because right after 9/11, we looked into this as a nation and we found that the CIA wasn't talking with the FBI. The FBI wasn't talking with the CIA.
Lots of clues did not get brought together in one place. And all we've done since 9/11 is create some kind of a committee to try to bring those clues together; and I can assure you from being a long- time bureaucrat that committees are not long-term answers to problems.
HEMMER: Stansfield Turner, former CIA director under Jimmy Carter, our guest in D.C. Thank you for your time.
A bit later we'll talk with James Woolsey, his opinion on this same reaction as well -- Heidi?
COLLINS: Hundreds of homes are in the path of a wildfire northwest of Los Angeles. Powerful shifting winds have made the fire difficult to fight. And as Donna Tetreault reports, the winds are also making it hard to predict where the fire is headed.
(BEGIN VIDEOTAPE)
DONNA TETREAULT, CNN CORRESPONDENT (voice-over): The past 24 hours have been a roller coaster. In the morning, flames swept through the Santa Clarita mountains, but families were headed back home. Mandatory evacuations were lifted.
PATTY KELLY, EVACUEE: We love our house here and the area. It's just so scary because you just don't know.
TETREAULT: Only hours later, churchgoers heard a different story.
PAUL SPIKER, EVACUEE: There was an announcement saying everybody that lives up in the Sand Canyon area, you are being evacuated to go home or whatever, do what you need to do.
CAPT. DENNIS CROSS, L.A. COUNTY FIRE DEPARTMENT: The fire is doing a lot of really, really sporadic things. It's spotting way ahead of its itself.
TETREAULT: Getting out safely proved to be a challenge for the Gomez family. They've been part of this community since 1977 and say they knew this day would come.
JOSEPH GOMEZ, EVACUEE: I think we've been anticipating it from the obvious, the fires the smoke and things that are going on.
TETREAULT: As the afternoon heat rose into the 90s and the high winds remained unpredictable, police pulled hundreds of people to evacuate.
CYNTHIA GARRICK, EVACUEE: They are pretty much coming in saying mandatory evacuation at this point so you need to move out.
CROSS: It's going to have its way. Its going to continue to chew up critically dry fuel and burn, and unfortunately that's just the nature of the beast here in Southern California.
TETREAULT (on camera): Investigators say a person caused this fire. Whether or not it was accidental or intentional is still unknown, but an arson investigation is open.
Donna Tetreault for CNN, Santa Clarita, California.
(END VIDEOTAPE)
COLLINS: So, could the weather help firefighters or not? Chad Myers is at the CNN Center now with the very latest on all of this. Keep looking at that video and it's always so upsetting, Chad.
CHAD MYERS, CNN METEOROLOGIST: Yes, a lot of underbrush there, an awful lot of sage, an awful lot of things that are very dry right on the ground and then you even have a little bit of a tree top fire as well. Here's what the wildfire scene looks like. Here's a locator for you. Here's Los Angeles right here. You actually have to go up the I-5 almost up to Lebec to actually find that fire. But it is the strongest and really the most important fire in California right now. Here's the forecast.
(WEATHER BREAK)
MYERS: Heidi, back to you.
COLLINS: All right, Chad. Thanks for that.
A major shift in Medicare policy could make a big difference for Americans who are dangerously overweight. The government healthcare program has opened a door to coverage for certain anti-obesity treatments.
Human -- Health and Human Services Secretary Tommy Thompson is joining us now from the White House to explain these changes.
Secretary Thompson, thanks so much for being with us this morning.
TOMMY THOMPSON, HEALTH AND HUMAN SERVICES SECRETARY: My pleasure.
COLLINS: The key here is that the government is now saying that obesity is not a disease. Why the change?
The big change is that we've got such a huge problem in America with people that are overweight and obese. Sixty-five percent of Americans are either in one of those two categories.
And the kind of diseases that are affected by obesity such as strokes and heart attacks, and some cancers are causing such a tremendous problem, we decided we have to do something about it. And that's why the government has decided to change its policy, Heidi.
COLLINS: How soon do you think we can expect to see this impact on the Medicare coverage?
THOMPSON: Well, you're going to see an impact very quickly because we're changing the coverage right now. It's going to be based upon individual cases. It's going to be for the first time doctors are going to be able to analyze an individual and find out what sort of treatment he needs -- and he or she needs -- and then they can apply for reimbursement through Medicare.
And Medicare will analyze each one of these cases on an individual basis based upon the medical and scientific evidence. We'll also going to empanel a group of experts this fall to take a look at the whole subject to see how we might be able to combat it even more effectively than we have in the past.
COLLINS: You've mentioned these weight loss tools. And we've heard a lot in the past, oh gosh, several months about gastric bypass and several other different types of treatment, so what do you expect Medicare will cover on that front?
THOMPSON: Well, we're going to be covering things on an individual basis. A doctor's going to analyze somebody that's morbidly obese and decide maybe that they're going to have to have an operation, and they'll submit that kind of information in Medicare.
And we will take a look at it and more than likely we'll be covering some of those because we have such a huge problem. $118 billion in America and over 400,000 Americans died last year because of obesity related illnesses. And we want to be sure that we start solving this problem. The problem is growing as fast as our waistlines are in America.
COLLINS: Well, that being said, Secretary Thompson what do you say to critics who are really feeling strongly about taxpayers not having to pay for this type of treatment?
THOMPSON: Well the problem is that it's such a large problem already. $118 billion is growing faster than tobacco related illnesses. And it's time the government stands up and does everything we possibly can to alert Americans about the problems of obesity.
And this is one way in which we can do it. This is not the only thing we're doing. We're having a whole panoply of ideas and things that the government is doing, trying to get people to exercise more, to eat more nutrition foods, more fruits and vegetables and to take in to consideration the calorie counts. And so we're trying to do a lot of things, not just this one thing.
COLLINS: All right. Quickly before we let you go, sir I want to ask you a little bit about a "TIME" magazine report that is talking about faulty intelligence and the threat that Iraq had weaponized smallpox. That whole threat was overblown, they are saying.
Will you continue to push for civilian smallpox vaccinations?
THOMPSON: We're going to continue to alert Americans about the problem of smallpox. We also, of course, have got in our inventory, 400 million doses so that we can vaccinate every man, woman and child.
We put in plans in which if smallpox did break out we could vaccinate every American within 10 days. So, we're doing all of the preparatory work, but we're not actually pushing as hard to vaccinate people at this point in time.
COLLINS: OK. Understood. Health and Human Services Secretary Tommy Thompson, thanks so much for being with us this morning.
THOMPSON: My pleasure Heidi.
HEMMER: Well, 14 minutes past the hour now.
Kobe Bryant expected back in a Colorado courtroom today. Among the issues to be talked about there, whether or not to allow cameras in the courtroom when that case begins. Adrian Baschuk live in Eagle Colorado with us there this morning. Good morning. ADRIAN BASCHUK, CNN CORREPONDENT: Good morning to you, Bill.
With just five-and-a-half weeks left to this trial getting under way here in Eagle, the pieces are finally falling into place. Nine hundred ninety-nine jury summons were sent out to Eagle residents last week. Still, some major issues remain unresolved.
(BEGIN VIDEOTAPE)\
BASCHUK (voice-over): Cameras have twice been allowed to record the appearances of basketball star Kobe Bryant in the courtroom where he will be tried on the charge of sexual assault. Today the judge will hear arguments on whether to ban cameras from the trial itself.
LARRY POZNER, CRIMINAL DEFENSE ATTORNEY: Traditionally, Colorado judges have allowed cameras in the courtroom for trial. So, the history is in favor of cameras. But this is an instance where both sides say don't do it.
BASCHUK: The prosecution argues that a camera's presence violates the alleged victim's privacy. Today her attorneys will ask the judge to ban the filing of court documents online amid claims the defense is using this practice to smear Bryant's accuser.
CYNTHIA STONE, COLORADO COALITION AGAINST SEXUAL ASSAULT: Many times they have put out motions that were filled with rumor, innuendo and speculation about this young woman, none of which had been proven yet to be true.
BASCHUK: Last week, Judge Terry Ruckriegle ruled that prosecutors may admit as trial evidence Kobe Bryant's t-shirt which they allege is stained with the blood of his accuser. Also, the jury will hear statements Bryant made to police before his arrest that were being tape recorded without his knowledge.
CRAIG SILVERMAN, FORMER DENVER DEPUTY D.A.: No one knows for sure what Kobe Bryant said on that tape. We do know he said things that he now regrets. That's why he moved to suppress it. Is it incriminating or just embarrassing?
BASCHUK: A question that won't be answered until the trial gets under way August 27th.
(END VIDEOTAPE)
BASCHUK (on camera): Now, if you are wondering whether or not this case will be televised, I can tell you this, cameras have never -- again never -- been allowed in a Colorado courtroom to broadcast a sexual assault case -- Bill?
HEMMER: Adrian, thanks. Adrian Baschuk in Colorado -- Heidi?
A harrowing ride for some sightseers at a Baltimore children's museum. A balloon took 20 people on the unexpected ride of their lives Saturday. High winds causing mechanical malfunction with the balloon's retracting cable, stranding the riders in a gondola some 350 feet above downtown Baltimore.
Strong winds slammed the balloon into the roof of the city's police department.
(BEGIN VIDEO CLIP)
KEVIN PHELPS, BALLOON PASSENGER: I thought we were going to die, you know.
UNIDENTIFIED FEMALE: I thought we were going to get killed or get hurt.
CHRIS GORMAN, BALLOON OPERATOR: I just told them, you know, stay down, you know, in case another gust comes. You know, just be calm.
I mean, the kids -- you know, the kids were crying. We had people throwing up and people, you know, were like -- I mean, they were just -- I mean it was wild.
(END VIDEOTAPE)
COLLINS: Four riders suffered minor injuries. The ride at Discovery Children's Museum has operated safely for years.
And coming up in about an hour on AMERICAN MORNING, we'll talk to some parents, Mike and Kathy McGonigle. They were trapped on that frightening balloon ride with their two children, ages two and four. That's coming up at 8:15 right here on AMERICAN MORNING.
HEMMER: What a weekend it was for them, oh my.
Checking other news. Daryn Kagan at the CNN Center now starting off with Iraq. Daryn, good morning to you on this Monday.
DARYN KAGAN, CNN CORRESPONDENT: Bill, good morning. Good to see you back from vacation. Let's start with Iraq.
As you said, a morning suicide bombing in Baghdad tops our headlines. Iraqi officials say that at least nine people have been killed, dozens of others injured.
The attack left a crater about 10 feet deep outside of a police station in the city's Southern district. This violence coincides with a new threat against interim Prime Minister Ayad Allawi. According to an Islamic Web site a militant group is offering a $280,000 reward for killing Allawi.
Charles Jenkins, the former U.S. soldier accused of defecting to North Korea is resting in a Tokyo hospital. Jenkins arrived over the weekend with his Japanese wife and their daughters. He is preparing to undergo medical treatment for abdominal problems. The U.S. had said it would not seek his extradition while he is in the hospital.
A week from today Democrats open their convention that will formally nominate John Kerry for president. This morning we get our first look inside of Boston's FleetCenter. That's where the convention will be held. The Kerry-Edwards campaign has also released an itinerary for the candidates leading up the big show in Bean town. In our next hour, we will talk with John Kerry's daughter Vanessa about what we can expect next week.
In health news, there is some hope in the battle against Alzheimer's disease. New research suggests the drug Aricept may be able to ward off the onset of the disease by six months. Despite that delay, though, the drug does not cut the risk of contracting Alzheimer's. A doctor at the Mayo clinic calls the findings "a foot in the door to more effective treatment."
And finally, it did take four extra holes, but golfer Todd Hamilton is the British open champion. Hamilton shot all pars yesterday in the four-hole playoff with Ernie Els. Els did bogey one hole giving Hamilton the one-stroke win. Hamilton and his wife, by the way, will be guests here on AMERICAN MORNING tomorrow. And Bill, I think you'll find they are pretty low key Midwestern people.
HEMMER: Yes.
KAGAN: If you saw his interview after the British open...
HEMMER: Yes.
KAGAN: ... he kind of just -- matter of fact, he said he was just happy to win his tour card.
HEMMER: Yes. Listen, he was steady throughout that entire tournament, very little reaction shown. When he bogeyed 18, though, I thought he was done.
KAGAN: Yes. Against Ernie Els, a champion like that who had won the open - Well, of course we could talk all day about this. You have other things to do.
HEMMER: They'll be here tomorrow, and they can talk about it.
KAGAN: Look forward to it.
HEMMER: Thank you, Daryn. Talk to you a bit later this morning.
Back to Jack now and the "Question of the Day." Good morning.
CAFFERTY: How are you doing? Got to love this story.
Arnold Schwarzenegger saying -- are you OK?
One of our floor guys just hit his head on one of the cameras.
Arnold Schwarzenegger says -- you need to be shorter.
Arnold Schwarzenegger says he's not sorry for calling a bunch of Democrats "girlie-men" out there in California over the weekend. He used the term to refer to Democrats who he said were delaying the state budget.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: If they don't have the guts to come out here in front of you and say, I don't want to represent you -- I want to represent those special interests, the unions, the trial lawyers. I want them to make millions of dollars, I don't want to represent you -- If they don't have the guts, I call them girlie-men. We should go back to the table and we should fix the budget.
(END VIDEO CLIP)
CAFFERTY: Oh, Arnold.
Critics say the remark was sexist and homophobic.
The governors spokesman says it was a forceful way of showing that legislators are wimps when they allow themselves to be pushed around by special interests.
So, the question this morning is, should Governor Schwarzenegger apologize for calling Democrats "girlie-men"?
I don't know the answer to the question, but I think it's terrific that he did it because -- and what a state to do it in, you know, out there in California.
Anyway little things happen when you are away.
HEMMER: That's exactly right.
CAFFERTY: The lord provides.
HEMMER: Yes.
CAFFERTY: It's good stuff.
HEMMER: ... from heaven.
CAFFERTY: That's right.
HEMMER: Thank you, Jack.
COLLINS: A spectacular crash on a California raceway as fire engulfs one of racing's biggest stars. NASCAR driver Dale Earnhardt, Jr. is recovering with second-degree burns after this accident yesterday during a practice run.
Earnhardt's Corvette spun and hit a barrier and then exploded after a fuel spill. The 29-year old suffered second-degree burns on his face and both legs but amazing was able to climb out of the burning wreckage.
(BEGIN VIDEO CLIP)
BORIS SAID, CAR CO-DRIVER: I mean it was frightening to see because he's a close friend and when you see something like that on TV you feel helpless. But you know, I was there in the Infineon Care Center when they brought him in. And you know, he was awake and alert.
He just was really disappointed that, you know, the car got wrecked and we couldn't race, so -- and I just kept telling him, don't worry about that. But -- I mean, he's a tough guy and he'll be back strong.
(END VIDEO CLIP)
COLLINS: Worried about finishing the race.
Earnhardt's doctors expect he'll be out of the hospital in just a few days. A burn suit he was wearing, of course, protected him pretty well.
HEMMER: Close, close call though.
All right. In a moment here on AMERICAN MORNING, cracking the secrets of al Qaeda. We'll give you an inside look at the art of interrogation. One man who got in the heads of suspected terrorists. He's written a book about it. We'll talk to him in a moment.
COLLINS: Also ahead, an unprecedented rebellion in the Middle East. Yasser Arafat sees his power crumbling. We'll take you live to Jerusalem.
Also, "Minding Your Business" today, we'll talk about why Martha Stewart is comparing herself to Nelson Mandela ahead in a moment after this.
(COMMERCIAL BREAK)
HEMMER: Welcome back, everyone. Now that Martha Stewart has been sentenced, what's next for her company? Good question for Christine Romans working for Andy Serwer this week minding everyone's business. Good morning to you.
CHRISTINE ROMANS, CNN CORRESPONDENT: Good morning.
You know her stock rallied 42 percent on Friday.
HEMMER: Up three bucks, right?
ROMANS: Up almost three bucks, you know, $12 a share, unbelievable.
But you were asking about some of the fundamentals of the company. You know, it's still losing money, this company is. And that's a problem in terms of shareholder returns.
Martha Stewart also on Friday telling investors, telling her customers, I will be back, and if you believe in my company, you know, and believe in my products, thanks for sticking with me.
According to the "Wall Street Journal," the company president, Sharon Patrick, called the outcome on Friday as good as it could be.
Of course that outcome, Martha Stewart, five months in jail and five months of home detention. She is free on appeal, but it's really a singular kind of issue for a company. This is a company called Martha Stewart Living Omnimedia. And it's a company that bears her name and its founder and chief creative force in all likelihood will be going to jail. So, it's a very interesting situation.
In the meantime, Martha Stewart is out and about giving her point of view to the media. She's told ABC that she'll get through this. And she compared herself to the 86-year-old Nelson Mandela. And then, of course, her critics very quickly saying Nelson Mandela was in jail for 27 years for trying to change apartheid in a country. She, of course, is, you know, a stock sale -- a little scandal there.
So very interesting stuff. This goes on and on. She was sentenced and still in the news.
HEMMER: We may find out more tonight then when she talks again. She'll be only here on CNN with Larry King later tonight at 9:00. And one has to wonder: If this appeal goes forward, how long is the delay before any prison time is spent anyway?
ROMANS: Interesting. And she'll be taking calls on LARRY KING tonight as well.
HEMMER: OK. Thank you, Christine. Good to see you here.
ROMANS: Yes.
HEMMER: A little later this hour?
ROMANS: Yes, absolutely.
HEMMER: OK. Here's Heidi.
COLLINS: Still to come this morning, we'll jump-start your work week with some "90-Second Pop."
The machines fight back as technology takes over your life and "I, Robot" takes over the box office.
Plus, word is Britney Spears is on a rebellious streak. All that and more in "90-Second Pop".
(COMMERCIAL BREAK)
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