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American Morning

Samuel Berger Investigation; Martha Stewart Talks; Building a Bigger Bomb

Aired July 20, 2004 - 8:59   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. The man in charge of national security under President Clinton takes classified documents while getting ready for the 9/11 investigation. The question today is why.
Hard choices for Martha Stewart. Would going straight to prison be the best way for her to serve her own company?

(BEGIN VIDEO CLIP)

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: My company needs me. I would like to get back to work. I would like this to be over.

(END VIDEO CLIP)

HEMMER: This morning, more on the exclusive interview last night with CNN and Larry King.

And after a hostage negotiation goes nowhere, police take the direct approach to reach a gunman. How it all turned out this hour on AMERICAN MORNING.

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

HEMMER: Nine o'clock here in New York. Good morning, everyone, and welcome back to our third hour. Soledad is out resting in the final weeks of her pregnancy. Heidi Collins here in New York.

A lot to talk about again this hour. Former National Security Advisor Sandy Berger under a criminal investigation for taking classified documents out of a screening room. We'll talk to former White House Special Counsel Lanny Davis about how serious this matter could be in a moment.

HEIDI COLLINS, CNN ANCHOR: Also, we'll meet a 67-year-old man who retired from the Army and may now be called back to active service. We'll find out why the Army singled him out and whether he wants to serve again.

HEMMER: Also this hour, moon memories. We'll look at a 35th anniversary of Apollo 11's landing on the moon. Miles O'Brien standing by to talk about the celebration today, and a very proud day for everyone at NASA.

COLLINS: Jack Cafferty now.

JACK CAFFERTY, CNN ANCHOR: Supposed to be going back there pretty soon, right, to the moon? Didn't the president say he wants to go back there?

COLLINS: Yes.

CAFFERTY: There you go.

E-mails -- there is a little known perk in the U.S. military: free cosmetic surgery. We're not talking about reconstructive surgery, where, you know, wounded troops would be, you know, provided services to help them reconstruct themselves. We're talking about nose jobs, boob jobs, liposuction, all free. Good idea or not -- am@cnn.com.

HEMMER: All right, Jack. Thanks for that.

The story now in Washington with a lot of attention today, Samuel Berger, national security advisor to former President Bill Clinton, is being investigated over whether or not he improperly removed classified documents while getting ready for his own testimony before the 9/11 Commission. Bob Franken tracking this story live in D.C.

Bob, good morning there.

BOB FRANKEN, CNN CORRESPONDENT: Good morning, Bill.

And FBI agents with a warrant searched Berger's house in February, looking for documents. Berger is the former national security advisor to President Clinton during the second Clinton term. He's also an advisor to the Kerry campaign now.

He had gone to the National Archives in July, September and early October, partly at the behest of former President Clinton, to research documents that might be relevant to the 9/11 Commission report. Later in October, after Berger had left, archives officials told him some documents were missing. Berger says that he inadvertently took some documents, along with notes, from the archives.

Now, these are very, very highly, highly-classified documents. There are two law enforcement sources, however, who tell CNN chief justice correspondent, Kelli Arena, that Berger was seen stuffing some of the documents in his socks.

Nevertheless, Berger has put out a statement which reads, "I inadvertently took a few documents. I also took my notes on the documents reviewed. When I was informed by the Archives there were documents missing, I immediately returned everything I had, except for a few documents that apparently I had accidentally discarded."

Now, these are extremely sensitive documents. According to one government source, they hold the highest classification. They're called "code word," which is higher that a Q (ph) rating. And one government source said that Berger is no rookie, he should not have had any ability to make a mistake about the sensitivity about these documents and how to handle them. As for Berger's testimony, he appeared before the 9/11 Commission in March.

(BEGIN VIDEO CLIP)

SAMUEL BERGER, FMR. NATIONAL SECURITY ADVISER: During this millennium period, plots were uncovered in Amman against the Radisson Hotel and religious sites, and against the Los Angeles Airport. Terror cells were broken up in Toronto, Boston, New York and elsewhere.

(END VIDEO CLIP)

FRANKEN: The subject of these documents was the post-action reports on how the al Qaeda threat to the United States was handled during the millennium. You'll recall that officials say they were able to arrest a person and stop him from coming into the United States with the intent to bomb, perhaps, the Los Angeles International Airport.

Now, according to a government source, the White House was never informed of this investigation but the 9/11 Commission was. As for claims that the Justice Department or somebody in the Bush campaign may have leaked the word of this investigation, an administration source says that is simply not true -- Bill.

HEMMER: Bob, thanks for that. Bob Franken in Washington. A lot to consider now, Bob, given your reporting there.

Lanny Davis, a former White House special counsel to President Clinton, he's our guest now live in D.C.

And welcome back, Mr. Davis, here to AMERICAN MORNING. Have you spoken with Samuel Berger?

LANNY DAVIS, FMR. WHITE HOUSE SPECIAL COUNSEL: I tried calling him this morning. Look, there is absolutely no doubt that Sandy Berger is a person of impeccable honesty and integrity. He spent nights and 24-hour time periods before the millennium doing, I think, a critical job in thwarting a terrorist attack between 1999 and 2000 New Year's Eve.

And what we're told -- and the only thing I know is what I've read -- is that these were widely-circulated memos in the government. He took copies of those memos inadvertently in his own notes. And there's absolutely no basis for suggesting that there were any national security issues here or harm done here.

I'm suspicious about who this government source is who my friend Bob Franken is referring to, and why they're speaking today on the day of the 9/11 Commission and the week before the Democratic convention. And the denial that there's anything coincidental about this leak, I am just a little skeptical about.

HEMMER: What could this error in judgment cost him?

DAVIS: Well, it's a mistake. It's not an error in judgment, necessarily. He may have just done something inadvertently. And we know it -- Sandy Berger, as an outstanding person who's been involved in national security issues, played a critical role in protecting the country, and there is nobody on either side of the aisle that thinks there's anything even possible that Sandy could have done deliberately here.

HEMMER: Help us -- help us make sense of this, though. He's the former national security advisor. He would know when he goes in and looks at certain documents if they have the highest classification of secrecy that they should stay there and stay secret.

DAVIS: Well, what we know is that he made a mistake. What we also know is that this highest classified document that was penned by Mr. Clarke was widely circulated in the government and since been widely reported on, and was not revealing any of the nation's secrets.

So, while we can use language like, "highly classified," and we have some anonymous government source talking to the media about this on the day of the announcement of the 9/11 Commission -- the FBI's been at this since last January -- this seems very suspicious to me.

HEMMER: What about this report from Kelli Arena that he was stuffing documents in his socks? And put that with the statement that Samuel Berger made on the screen, we can put it up. Bob Franken just reported it.

If you go to the end of this statement -- well, let's read it. "I inadvertently took a few documents from the Archives. I also took my notes on the documents reviewed. When I was informed by the Archives there were documents missing, I immediately returned everything I had, except for a few documents that apparently I had accidentally discarded."

What's to explain why he would get rid of them?

DAVIS: He said "accidentally," and the explanation is the truth that it was accidental. But look what you have just done, Bill, with all due respect. You just referred to an anonymous comment by somebody who doesn't have the guts to put his name behind that somebody stuffed something in his socks.

Suppose that person is lying? Bob Franken doesn't necessarily know his name. You don't know his name, yet you just quoted that on national television. I suggest that person is lying. And if that person has the guts, let's see who it is who made the comment that Sandy Berger stuffed something into his socks.

HEMMER: Yes. And with all due respect, sir, I respect the people that work for this network and the reporting they conduct. And if Kelli Arena says it based on the evidence she got this morning, then we report it.

DAVIS: Excuse me, Bill. I'm not questioning that she is reporting accurately. That's not fair.

I said that somebody told her something that is a lie, in my opinion, that Sandy Berger was caught stuffing something into the socks. And the person who told your reporter that doesn't have the guts to put his name out there on the record. That's all I said.

HEMMER: All right, Lanny. Thanks for coming and talking with us this morning. Clearly, there's a lot we do not know about this story. But as we get through the day here, perhaps we'll get more answers. Lanny Davis in D.C., thanks again.

Here's Heidi.

COLLINS: For the first time since being sentenced for lying, conspiracy and obstruction of justice on a stock sale, Martha Stewart spoke out last night. She talked of her plans to serve her sentence of five months in a federal prison and five months on house arrest, as well as two years probation and the fine she received.

National correspondent Frank Buckley now.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Martha Stewart, sentenced to five months in prison and five months of home detention, vowed an appeal. Stewart told Larry King she hasn't ruled out simply serving her sentence.

STEWART: On the one hand, business, Wall Street, advertising, they would like to see finality. They would like to see an end to all of this.

LARRY KING, HOST, "LARRY KING LIVE": Obviously.

STEWART: I, as a person with rights, with a belief in the judicial system and fairness, think that an appeal is the way to go. So, what do I do?

BUCKLEY: Stewart, whose legal troubles over the past couple of years provided cable TV and tabloid news with an endless source of stories, struck back at the pundits.

STEWART: Pundits are out there saying, oh, she should go in. Do they know what it's like to go to jail?

BUCKLEY: She struck a softer cord towards those who described her as "arrogant."

STEWART: I wish I were perfect. I wish I were just the -- you know, the nicest, nicest, nicest person on earth. But I'm a businessperson, in addition to a creator of domestic arts. And it's an odd combination. No excuse. But if I were a man, you know, no one would say I was arrogant.

BUCKLEY: And in true Stewart style, she promised a new product would emerge from her legal troubles.

STEWART: I think I'll write a book. Because I think it could be helpful to other people just -- just about -- just about what lawyer to choose, how to behave. How to attend an interview. I mean, there's things that -- you know, there's no how-to book about this. BUCKLEY: The final chapter in Stewart's legal tome still to be written.

Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: Martha Stewart has stepped down as CEO of her company, but remains its largest stockholder and chief creative officer.

HEMMER: The Air Force says the U.S. plans to develop an experimental bomb aimed at destroying deeply-buried targets beyond the reach of existing bombs. More on the story now at the Pentagon. Here's Barbara Starr yet again.

Barbara, good morning there.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Bill.

Well, it's an idea on paper, but if it comes to pass, it will be a whole new step in the whole notion of shock-and-awe warfare. Indeed, the Air Force is asking for ideas about developing a 30,000- pound bomb.

It's called the Massive Ordnance Penetrator, a 30,000-pound precision-guided weapon that could be dropped by a B-2 or B-52 bomber designed to go after deeply buried or hardened targets. Yes, the idea is to go after targets that might present themselves in North Korea if there was -- was to be a war on the peninsula.

Now, this bomb would be six times bigger than the current penetrating weapon that you see being dropped here. That's a 5,000- pounder. But after the weak in Iraq, when they went and looked at some of the sites they bombed, and found that Iraqi underground targets were not fully destroyed, they realized they had to go further and develop an even bigger bomb.

And by the way, this one is referred to as the Big Blue. It is different than the other bomb you might remember, the MOAB, the mother of all bombs. That's a 20,000-pounder, and that was designed for above-ground targets. But this one, specifically for those underground targets that might be a future threat in places like North Korea -- Bill.

HEMMER: How big is that threat considered today, Barbara?

STARR: Well, it's quite interesting. What we have learned is, while nothing is imminent, it is still something that war planners worry deeply about.

When the war in Iraq erupted, there was so much concern about the possibility that the North Koreans could take some sort of destabilizing action. The Air Force actually deployed about a dozen advanced missiles with 1,000-pound warheads. They put them with a B- 52 bomber wing. These were missiles not yet in the regular inventory. They put them there just in case North Korea engaged in some destabilizing action, they would have something to use there against those underground targets in North Korea. Right now, there is wide acknowledgement there's no existing weapons that really can destroy some of those North Korean targets -- Bill.

HEMMER: Barbara Starr at the Pentagon. Barbara, thanks -- Heidi.

COLLINS: Thirteen minutes past the hour now, and time for a look at some of today's other news with Daryn Kagan.

Hi, Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, let's start with beginning by a day of celebration with the Philippine embassy in Baghdad, as former hostage Angelo de la Cruz is freed. Insurgents released the Philippine truck driver outside another embassy today. He's expected to leave Iraq tomorrow, nearly two weeks after being captured.

Meanwhile, a former hostage from Egypt is enjoying his first full day of it freedom after being released yesterday.

President Bush is accusing Iran of supporting Islamic militant groups. At the White House yesterday, the president said the U.S. has not ruled out a possible connection between Iran and the September 11 terror attacks. That, despite CIA reports that no evidence of a link exists.

To California now. An electrocuted bird is being blamed for sparking a fire that is destroying some 6,000 acres in Los Angeles County. Crews are using helicopters and bulldozers to battle the blaze that's now about half contained. Nearly all the evacuated residents returned home last night. More progress is expected today, with temperatures expected remain cool in southern California.

Let's go to Africa now, where talks aimed at ending violence in Sudan could resume by the weekend. Talks between the government and rebels in the Darfur region broke down over the weekend. Also, a new report from the group Human Rights Watch says the documents show the government is supporting militias in that area which are accused of carrying out a campaign of mass murder.

And finally, pictures that show a dramatic ending to a South Carolina hostage standoff. Yes, that is a bulldozer police are using to smash through the wall of a convenience store. Watch this.

Inside, an armed man had taken the female owner hostage. The suspect then struggled with the woman. But a happy ending for her. She finally was able to escape unharmed after 13 hours holed up with that suspect, by the way. The suspect was shot during the operation. He is awaiting charges while in the hospital.

The wires, Bill, say that this man was just recently released after serving 14 years in prison. HEMMER: But she's OK.

KAGAN: She is OK. I'm sure pretty shaken -- shaken up. She's the store owner, and people around there say she's just the nicest woman. You come in the store, you don't have what you need, she let's you take it and come back and pay later.

HEMMER: Well done. Thank you, Daryn.

Fifteen minutes past the hour now. Along with the thousands of retired veterans being called up to bolster troop strength around the world, the Pentagon has contacted a 67-year-old retired Army psychiatrist. Dr. Charles Ham recently given a physical, waiting to hear about a return to active service.

Earlier today, I talked with Dr. Ham from Columbia, South Carolina.

(BEGIN VIDEOTAPE)

HEMMER: Good morning, Dr. Ham.

DR. CHARLES HAM, RETIRED ARMY COLONEL: Good morning, sir.

HEMMER: Tell me about the surprise phone call you got from the U.S. Army.

HAM: I got a call at my office one day when I was working, and they said they needed me back on active duty.

HEMMER: What was your reaction when they phoned you?

HAM: Man, I was quite surprised. I've been retired seven years. And I just thought I was through. But if we're at war, I'm ready to go help my country. But I sure was a little surprised.

HEMMER: Let me understand. You retired a full colonel, correct? You're age 67 now. You're a grandfather.

HAM: Yes, sir.

HEMMER: Are you fit to serve?

HAM: I think I am. I can physically get around fairly well.

HEMMER: As a doctor, what could you offer the U.S. Army at this point?

HAM: I'm a psychiatrist. And the person that called me said they had a critical shortage of orthopedic surgeons, general surgeons and psychiatrists, and we needed to go and help support the troops. And I really had asked them if they could find somebody younger it might be better, but they called me back and said they needed me.

So I'm ready to do my part. If we're at war, I'm ready to do my part. HEMMER: We are told that an Army mental health advisory team finds a higher suicide rate among those serving in Iraq than in other parts of the world. Would you be able to assist in an area like that, doctor?

HAM: I would do my part trying to help understand what causes that and how to better treat it. I would be happy to do my part, sir.

HEMMER: All right. You served 41 years in the Army, is that right, before you retired?

HAM: In the Army Reserves, Active Reserves, got called in during the Vietnam conflict, and back in Saudi 1.

HEMMER: What do you think that experience can do for others younger than you serving today?

HAM: Well, I got to see during the draft some people who really didn't want to be in the military. And during Saudi, got to see how a short conflict goes.

But also in studying at the command general staff in the war college, you learn how to help people face their fears and not let it develop into PTSD as best we can. Back (ph) policies, and you study all that stuff to try to help the troops as best we can in support the fighting strength.

HEMMER: Help me with the acronym there. PTSD is what?

HAM: Post-Traumatic Stress Disorder.

HEMMER: If you were called back to duty, will you have the option to go to Iraq?

HAM: I was told, if you're called back, I would go to either Iraq or Afghanistan for 90 days, boots on the ground. I guess that means in country. Or, if I didn't do that, I would be given an option to be in (UNINTELLIGIBLE) stateside for a year.

And I have no earthly idea. That was a preliminary suggestion that the person called me told me.

HEMMER: What does your wife have to say about this?

HAM: She's been very supportive through the years, and she says that if that's what I need to do, that she'll be happy to support and do her part back at home base.

(END VIDEOTAPE)

HEMMER: Dr. Ham from earlier today. An Army spokeswoman says that Dr. Ham is subject to being recalled because he's an officer. There's no age limit for officers they serve -- to serve rather. He turns 68 on February 25.

CAFFERTY: Wow. COLLINS: And checking in with Jack now and the "Question of the Day."

CAFFERTY: Pretty amazing.

COLLINS: Yes, it's amazing.

CAFFERTY: Speaking of the military, "The New Yorker" has got a story this week. All military personnel can get free cosmetic surgery, including face-lifts, nose jobs, breast enlargements, liposuction.

In the years 2000 to 2003, Army doctors performed 496 breast enlargements and 1,361 liposuctions. For the breast enlargements, the patients must supply their own implants. You've got to bring those with you because they don't provide those. The Army spokeswoman says that they do these procedures so the surgeons can have somebody to practice on.

Good idea or not? Should the military pay for cosmetic surgery?

Bob in Leavenworth, Kansas: "No. Too many retirees are waiting for healthcare we were promised. Some general's wife can get big boobs elsewhere."

Linda in Dover, Delaware: "I'm so glad to hear this. Is it opened to retired dependents? I'm a 56-year-old grandmother and I need so much tucked and reduced and liposuctioned. My only question is, do I need to bring my own trash bag to haul it all away?

Emy in Collingswood, New Jersey: "If I need a breast reduction surgery after cancer or an injury, I would want a surgeon who had experience in breast augmentation."

And Michael in Orlando: "Maybe the Army's new motto should be, 'Be the breast you can be.'"

(LAUGHTER)

COLLINS: Oh, man.

CAFFERTY: So silly. It's all I have at this time.

HEMMER: Fun, but silly.

CAFFERTY: Yes.

HEMMER: A check of the weather. Here's Chad again at the CNN Center.

Good morning.

(WEATHER REPORT)

HEMMER: All right, Chad. Thanks for that. In a moment, a new drug meant to treat heart failure is about to hit the market sooner than expected. Sanjay knows a bit about it, and he'll stop by with more in a moment.

COLLINS: And an alibi takes center stage in the Scott Peterson trial. But it isn't Peterson's we're talking about.

HEMMER: Also ahead, a special anniversary today. And here's Miles on that.

Good morning.

MILES O'BRIEN, CNN SPACE CORRESPONDENT: Good morning, Bill. Welcome to the moon, or sort of.

Actually, this is the Smithsonian Air and Space Museum on Washington's Mall. I'm in front of the lunar module. Thirty-five years ago today, where were you? If you were alive, you'd remember this scene and this odd craft.

We'll tell you about how NASA is looking back and looking forward, and who's going to get some moon rocks today. Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Thirty-five years ago tonight, Neil Armstrong took that one small step for man, that one giant leap for mankind. Walking on the moon ranks among the most thrilling moments in history. Miles O'Brien knows it all too well. Live at the National Air and Space Museum in D.C., good morning there -- Miles.

O'BRIEN: Good morning, Bill. It was an event to remember. Really, an event of the century, as Neil Armstrong and Buzz Aldrin, depicted behind me here at the Air and Space Museum in Washington, set foot on the moon 35 years ago today.

It actually happened -- the landing occurred a little after 4:00 Eastern Time. The moon walk, a little before 11:00 p.m. Eastern Time on that day. It was quite a day, but it began with an epic journey four days before.

(BEGIN VIDEOTAPE)

O'BRIEN (voice-over): The wake up call came at 4:15 on the morning of Wednesday, July 16, 1969 -- Neil Armstrong, Buzz Aldrin and Michael Collins, for precisely 25 minutes, they ate their breakfast -- steak, eggs, toast, juice and coffee. Collins called the atmosphere "studied casualness."

Then it was time to suit up. Once locked inside, they were in a cocoon. In a metal suitcase, they carried their air supply. They walked to the crew transfer van, seeing a group of NASA workers and photographers, but hearing only the sound of their breathing.

They drove slowly to Launch Pad 39A, about eight miles and 20 minutes away. Their launch window would open at 9:32 and close 14 minutes later. The timing was precise so four days later they would arrive at the Moon's Sea of Tranquility with the sun behind the lunar module and low on the horizon for optimal visibility.

UNIDENTIFIED MALE: And all is still go...

O'BRIEN: Twenty thousand VIPs, 3,500 members of the media, a million people along the Florida coast and millions more watching at home all focused on this amazing spectacle. In the launch control center, the father of the Saturn 5, Wernher von Braun, looked on as launch director Rocco Petrone polled his troops. "Go!" came the reply from every post and from the crew.

They were on their way. Their destination was destiny.

NEIL ARMSTRONG, APOLLO 11 ASTRONAUT: Tranquility Base here. The Eagle has landed.

(END VIDEOTAPE)

O'BRIEN: They landed with a little less than 30 seconds of fuel in the gas tank. Neil Armstrong had to take manual control over that lunar module in order to -- to avoid a crater and boulder field. There were so many unknowns, and later Neil Armstrong said the landing itself is what concerned him the most.

Thirty-five years later, NASA is contemplating a return to the moon, a different kind of mission. But nevertheless, for the first time since we have celebrated this anniversary, NASA is looking toward going back and once again putting footprints on the lunar dust -- Bill.

HEMMER: Pretty basic question, Miles. Where are the rocks 35 years later?

O'BRIEN: Well, there are about 850 pounds worth of rocks. And if you divide that by the $100 billion it cost, I think it's about $118 million a pound. So, they're very valuable rocks.

Most of them are in a special facility in Houston. But over the years they've been given away to museums and so forth. Richard Nixon gave them to several heads of state. And tonight, 38 members of the original astronaut classes and Walter Cronkite will receive little pieces of those rocks as a commemoration.

HEMMER: Wow. What a commemoration that will be. Hey, enjoy today, all right?

O'BRIEN: I will.

HEMMER: Thank you, Miles. Miles O'Brien in D.C. -- Heidi.

COLLINS: Still to come this morning: The latest in the Scott Peterson trial. It looks like the defense has found some holes in the prosecution's case.

Also ahead: A dramatic ending to a high-speed chase. You don't want to miss.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Just about half past the hour now on this AMERICAN MORNING.

HEMMER: Yes. Opening bell ringing on Wall Street right now. Get you down to lower Manhattan.

The Dow Jones industrial starting today at 10,094. They're down about 46 points in trading from yesterday. And Alan Greenspan goes back to the Hill today. Watch his testimony in the continued watch for interest rates. If they're going to get a bump in interest rates, when's it going to happen?

Nasdaq market site: 1,883, up about a half point in trading yesterday. So, stocks open for business now here in New York City.

And welcome back, everyone. Good morning again here.

COLLINS: I have a little agreement with Mr. Greenspan -- after I buy the house. So, we'll be good to go there.

In just a few minutes now, we will get an update on the Scott Peterson trial. Defense attorney Mark Geragos hammering away at more prosecution witnesses yesterday. The focus now on known sex offenders in the area. We'll tell you all about that.

HEMMER: Also, Sanjay is back at home, talking about a new heart drug so effective in trials that now it may be rushed to market. And Christine was talking about this earlier today.

COLLINS: Yes.

HEMMER: It really shot up yesterday in trading on the New York Stock Exchange.

COLLINS: It sure did.

HEMMER: So, we'll get to that.

COLLINS: Also, a little later, we'll have our interview with Todd Hamilton, this guy, the champ, the winner of this year's British Open. He and his wife stopped by just a little while ago. He told us about the strategy that gave him his first major.

HEMMER: He's wallowing in that, as well he should.

Meanwhile, it is week eight of Scott Peterson's double murder trial, and the defense continues on the defensive. Peterson's lead attorney attacking the investigation, contending that physical evidence is lacking and that the police work is shoddy.

Here's Rusty Dornin in California. (BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Different day, same witness, same line of questioning. Again, defense attorney Mark Geragos drove home the message that investigators found little or no evidence that linked Scott Peterson to the murder of his wife.

Detective Dodge Hendee said yesterday that stains suspected as blood in the back of Peterson's truck and on the steering wheel were not caused by blood. However, one stain on the truck door did test positive. And he testified Scott Peterson told one of the detectives he had cut his hand.

Geragos fired questions at Hendee about a demonstration where investigators wanted to see if someone could throw a 150-pound person, what they believed to be Laci Peterson's weight, out of Peterson's boat. They never did it. Geragos claimed police didn't do it because he said it was impossible. Legal observers say prosecutors probably had a good reason for not doing the experiment.

DEAN JOHNSON, LEGAL ANALYST: Maybe as a strategic move they figured let's not even try it, because if we get a bad result, then it's going to come back to bite us on the back of the neck in the middle of trial.

DORNIN: Detective Ray Coyle was recalled to the stand. Coyle says there are still 25 sex offenders and parolees out of more than 300 that he has not been able to contact or account for. The defense claimed investigators did minimal follow-up with offenders.

In a police report, one offender told investigators he murdered someone named Lisa Peterson in Modesto and dumped the body in the Bay Area. But he was eliminated as a suspect due to prior mental illness. Detective Coyle told the court the sex offender was not eliminated in his mind, nobody is.

(on camera): Again, through questions to prosecution witnesses, a chance for the defense to expound on their theory someone else killed Laci Peterson.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COLLINS: The success of a new drug designed to prevent heart failure in African-Americans patients means it could be on the market a lot sooner than expected. Dr. Sanjay Gupta now with us from Washington with details on this.

Very exciting, Sanjay.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: It is very exciting. The drug is called BiDil. And up until yesterday, it was in phase three clinical trials. Those trials being stopped yesterday.

Heidi, two reasons that trials typically get stopped: one, the drug doesn't work very well at all; or two, it work so well, that it would be unethical not to give the drug to everybody.

Now, there's a couple of reasons there. They actually studied this, and 1,000 -- 1,100 actually -- African-Americans, and found that they wanted to stop the trial because of survival rates increased and because of the drug safety.

Now, all of the outcomes of the study are not available yet. Those are going to be available probably in October. But as you said, Heidi, the manufacturers of this drug, NitroMed, they're excited about it, saying that they'd like to take this to market and get FDA approval as soon as possible -- Heidi.

COLLINS: Why, though, the need, Sanjay, for a drug targeted to specifically African-Americans?

GUPTA: Yes, you know, that's a -- that's an interesting point. There's a couple of things about that. One is that it appears that heart disease and heart failure specifically seem to affect African- Americans disproportionately higher. They're more likely to get it, they're more likely to suffer from it, and more likely to actually die from it, as well.

They get it at a much younger age than the average population. The reason behind that, a little less clear, though, Heidi. There's some -- some belief that there is a chemical known as Nitric Oxide. The name's not that important, but what it does, it basically keeps your blood vessels wide enough to allow blood to flow through. African-Americans seem to have lower levels of this, making them more of a setup for -- for heart attacks -- Heidi.

COLLINS: But technically, doesn't having heart failure mean that you have had a heart attack, or that it's fatal, at least, heart failure?

GUPTA: Yes, you'd think, right? If your heart fails, that's probably not going to be a very good thing. And it's not a good thing, but it doesn't necessarily mean that it's going to be fatal. There are lots of different type of heart failure, lots of different degrees of heart failure.

Some of the signs of heart failure, breathlessness, for example, where you can't breathe as well. You're actually building up fluid in your lungs. Excessive fatigue, swelling, a lot of people notice swelling in their -- in their legs or their feet, for example, and uncomfortable sleep.

But heart failure might mean often that your heart is still working, though not nearly at the rate or the level that it used to be working. This medication, BiDil, again, really specifically targeting, getting more blood flow to a heart, and possibly taking care of some of those symptoms -- Heidi.

COLLINS: All right. Dr. Sanjay Gupta, thanks so much for that.

GUPTA: Thank you. HEMMER: Get a break here. In a moment, what's a name worth? At least $20 million in you're Microsoft. "Minding Your Business" in a moment on that story.

COLLINS: Also ahead, if you're a 38-year-old rookie, you might as well make the biggest splash you can. We'll hear from the newest champion of the British Open ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone.

A legal challenge for Microsoft solved by the simple writing of a check. Christine Romans working for Andy Serwer today. She's "Minding Your Business."

Good morning. First, check of the markets. Greenspan's talking today on Capitol Hill?

CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: Absolutely, and a lot of earnings news. So we'll watch to see if the market is sort of just stuck, hypnotized, waiting for Mr. Greenspan to speak at 2:30. So far, it looks that way.

Dow up about eight points, 10,102. Don't forget stocks are down this year. The Nasdaq down about six percent, the Dow down about three percent. So it's been tough going for the markets, and we'll see if Mr. Greenspan or earnings can get some excitement going there.

HEMMER: Microsoft writes a check for $20 million.

ROMANS: This is amazing.

HEMMER: Who's the lucky recipient?

ROMANS: A company called Lindows, a company that Microsoft had sued for copyright violation back in 2001. And Microsoft, instead of going through with that lawsuit, has decided it will just pay $20 million for Lindows to change its name. Lindows will now become Linspire in September and will be $20 million richer.

You know, Microsoft, would have to prove that Windows, it owns that name. And it does have a copyright on it. But the word "windows" wasn't invented by Microsoft. I'm thinking about starting a company called Macrosoft.

HEMMER: You like that?

ROMANS: Yes, to see if maybe that they could pay my a cool mil to taking that off my hands.

CAFFERTY: There you go.

(CROSSTALK)

HEMMER: Well, thanks, Christine. ROMANS: You're welcome.

COLLINS: Jack Cafferty now and the "Question of the Day."

CAFFERTY: The "Question of the Day": Should the military pay for cosmetic surgery? It's free to enlistees and members of the service. Not reconstructive surgery. We're talking nose jobs, liposuction, boob jobs and the like. Should it be free to members of the military?

Erin-- pardon me -- in Virginia Beach writes this: "Absolutely. The military doctors get paid the same salary whether they do 10 or 100 plastic surgeries a day. So why not put them to work and get their skills up, unlike a civilian doc who tries to pump out as many surgeries as they can, because they are paid on a case-by-case basis?"

Rex in Fort Wayne, Indiana: "Why are the military surgeons busying themselves with cosmetic surgery when there are many wounded veterans coming back from Iraq who are on months-long waiting lists for desperately needed surgery for their injuries?"

Gayle in Columbia, South Carolina: "These people put up with substandard housing, low pay, some even on food stamps, long separations and dangerous working condition. I, for one, do not begrudge them anything they can get for free. Let the doctors hone their skills."

And Rich in Long Island writes: "It's not just a job, it's another full cup size."

A little play on the military slogan, you see.

COLLINS: It is. All right.

Still to come this morning...

CAFFERTY: You don't know quite what to do coming out of these, do you?

COLLINS: I know. I don't know how many times...

CAFFERTY: It's all right. Soledad can't handle it either.

COLLINS: ... you said "boob job" throughout this show. I think it...

(LAUGHTER)

(CROSSTALK)

COLLINS: OK. Brought back from the edge -- yes, we are -- a dramatic ending to a high-speed chase. We're going to show you the video and tell you what happened next on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: I want to take a moment to check the weather now for the day ahead. Chad Myers is at the CNN Center with the very latest.

Hi, Chad.

(WEATHER REPORT)

HEMMER: A check of the news headlines now. Daryn Kagan at the CNN Center in Atlanta starting again with news out of Iraq.

Daryn, good morning there.

KAGAN: Good morning to you, Bill.

Philippine President Gloria Arroyo says that a recently freed hostage in Iraq is in good health. Truck driver Angelo de la Cruz was released in Baghdad yesterday, one day after the Philippines completed pulling its troops out of Iraq.

Also, an Egyptian truck driver who was also being held hostage was released yesterday. That coming after his company agreed to no longer do business in Iraq.

Vice President Dick Cheney's former company, Halliburton, is under investigation in connection with business dealings in Iraq and Iran. The government is investigating one of the company's subsidiaries for possible overcharges in Iraq. Prosecutors are also seeking documents regarding trade with Iran, which is restricted by U.S. sanctions. The company denies any wrongdoing.

Back here in the U.S., attorneys in the Kobe Bryant sexual assault case don't want cameras in the courtroom. A lawyer for Bryant's accuser said yesterday that too much personal information about Bryant's accuser has already been released, prompting her to consider dropping the case at least twice. Earlier, Colorado Supreme Court ruled that the media could not publish transcripts of the trial set to begin on August 27.

Well, if diamonds are a girl's best friends, then we know of one that will be very popular. A gem four times the size -- it is four times the size of the famous Hope diamond, which is seen here. It has been found in the west African country of Guinea.

That particular stone, 182 carats. About -- that's about -- in case you're trying to measure for the ring -- as big as a computer mouse. The gem is being held at Guinea's Central Bank, if you're looking for that.

Finally, let's look at these pictures. A dramatic rescue in Green Bay, Wisconsin. A state troop saving the life of a woman. Watch this.

She tries to jump off the bridge. He goes and hangs on to her. Now, what you can't tell from the pictures, the river is 200 feet below. That's the Fox River below.

The woman apparently suffering from post-partum depression. Her family tipped off police, worried that she might be suicidal. The state trooper said it was the most eventful day he has ever had.

Bill, an incredible story. Wouldn't you love to talk to that state trooper?

HEMMER: No question about it. And you could -- he was not letting go.

KAGAN: No. Well, get this...

HEMMER: And time after time there, yes.

KAGAN: He's my guest coming up in about an hour.

HEMMER: Excellent.

KAGAN: "CNN LIVE TODAY."

HEMMER: Good deal.

KAGAN: Yes.

HEMMER: We'll see you then, Daryn.

KAGAN: Yes.

HEMMER: Thanks much.

One hundred and six days to go in the countdown to the November 2nd election. President Bush campaigns in Iowa and Missouri today. He lost to Iowa in 2000, won Missouri by only three percentage points.

The vice president, Dick Cheney, in Missouri yesterday, charged that senators Kerry and Edwards side with lawyers over doctors and their patients. Meanwhile, on the other side, John Edwards fired back that the Democratic ticket was on the side of families and not insurance and drug companies.

John Kerry, back in his home state of Massachusetts, in Nantucket, preparing for his speech at the convention in Boston. That speech goes down on Thursday of next week. Live coverage all week here on AMERICAN MORNING.

I'll be at the FleetCenter starting live at 7:00 a.m. Eastern Time on Monday morning. We'll have it all for you. If it moves in Boston, you'll see it here.

COLLINS: That's right.

Still to come, out of obscurity and into the limelight. It took Todd Hamilton 17 years as a pro to make the cut with PGA. But over the weekend, in Scotland, he was the greatest player in the world. We'll hear his story next.

(COMMERCIAL BREAK)

COLLINS: For years, he toiled as a pro golfer in the Far East, but in just a matter of days Todd Hamilton went from obscurity to international celebrity by winning the British Open. The 38-year-old Hamilton stunned the golf world with his victory last weekend in Scotland in a playoff to claim one of golf's four major championships.

Earlier on AMERICAN MORNING, Todd joined Bill and me, along with his wife, Jacque. I asked the British Open champ if his big win has sunk in yet.

(BEGIN VIDEOTAPE)

Nice job!

Todd Hamilton, now the pride of Oquawka, Illinois, joins us with his wife, Jacque.

Thanks for being here, guys. And this is a nice little trophy you got there, the Claret Jug. Look at that thing.

TODD HAMILTON, 2004 BRITISH OPEN CHAMP: I'm trying to pinch myself to -- to get over the feeling that, hey, you've done something kind of special here. I think when I get home and see -- see my friends and play golf with my friends, I think then it will start to set in.

HEMMER: Do you let people hold that thing?

HAMILTON: Sure. I'll get it for you, or you can have it for as long as you want.

HEMMER: Yes? That is beautiful.

COLLINS: As long as you want.

HEMMER: Yes. Thank you. On 18, when you bogeyed, did you think you were done?

HAMILTON: No. But I knew that it was going to be a tough challenge, the four holes. I was kind of glad that it was actually four holes instead of one.

HEMMER: Why?

HAMILTON: Because maybe I was feeling a little bit down about the way I finished. I had done so well for so long. To lose it, or at least lose the chance of winning it right there because of one bad tee shot was kind of disappointing.

HEMMER: You know, but to think about the golfers who were there on that leader board -- Ernie Els, Phil Mickelson, Tiger Woods...

COLLINS: Everybody was there.

HEMMER: Everybody was there.

HAMILTON: It was a truly championship leader board, and I'm very glad that my name ended up on top of it. (END VIDEOTAPE)

COLLINS: With the British Open win, Todd's world ranking jumped from 56 to 16.

HEMMER: We gave the trophy back.

COLLINS: Yes, you gave the trophy back. I wouldn't even hold it.

HEMMER: She is one woman with multiple personalities. Actress Sarah Jones stretching her acting muscles to the limit in a one-woman stage show in New York City. It's called "Bridge & Tunnel." Jones plays 14 characters, all immigrants.

Here are just a few.

(BEGIN VIDEO CLIP)

SARAH JONES, ACTRESS, "BRIDGE & TUNNEL": I am a poet, too, but your poetry can take any form you'd like.

It starts riding on the bus. No, really, please. Don't get up.

Please, let me hold your hand. I want to hold your hand.

Hi. My name is Johida (ph). I am 15 years old.

(END VIDEO CLIP)

HEMMER: Recently, Soledad sat down and asked Jones what inspired her tour de force.

(BEGIN VIDEOTAPE)

JONES: The inspiration came from just everywhere. The subway, but also in my own family life, in my own work life. Like many Americans, I've got people from all backgrounds, you know, right there, kind of in my immediate circle of friends and family, and so it was really easy to do the research.

SOLEDAD O'BRIEN, CNN ANCHOR: The 14 characters, are they based on specific people or sort of amalgams of different people?

JONES: They're definitely kind of -- you know, some of them are more combinations of a relative and somebody I knew at work, or somebody I got to meet doing formal research. It's a hodgepodge.

O'BRIEN: Is there somebody you like the most or you identify with the most?

JONES: You know, I'm like a proud parent. I can't say I have a favorite character.

O'BRIEN: Oh, come on. Really? JONES: But I really love in particular the stories from people who you wouldn't think would come out in public and tell their experience like that. So, you know, hearing the Jewish grandmother kind of take the stage, and she's sort of reluctant, but she does it. I love those stories.

O'BRIEN: One of my favorites is Pauline Ling, the Chinese mother who is talking about her daughter. Set up her story a little bit for us.

JONES: Well, she's another person who is sort of an unlikely participant in any kind of public event, but she comes out -- comes out, I use that term -- to talk about her daughter's alternative lifestyle, the fact that her daughter is a lesbian.

O'BRIEN: Let's listen to a little clip.

(BEGIN VIDEO CLIP)

JONES: She's not gay. She's just confused by this American problem. But she tell me, "Mum, it's not American." She said she is in love, in love with a nice Chinese girl.

(LAUGHTER)

JONES: So these are the words I'm waiting to hear from my son, not my daughter.

(END VIDEO CLIP)

O'BRIEN: Parts of it are very funny, but of course there's this underlying connection of compassion, I think, and humanity that connects everybody. Was it hard to work on the accents? I mean, you really -- if you don't get her accent right, no one's going to believe what you're saying about her.

JONES: I think I was so interested in getting the truth of these stories out to the public, to the theater-going audiences, that I wanted to make sure the voices were also accurate. And so I practiced, I studied. I worked really hard, because I know if somebody were portraying my life up there, I'd want them to get it right.

(END VIDEOTAPE)

HEMMER: Sarah Jones with Soledad earlier this month. That show about the immigrant experience in New York getting good reviews, too. She hopes to take it to Broadway. Well, stay tuned -- Heidi.

COLLINS: Coming up on CNN, more on that dramatic rescue in Wisconsin. Daryn Kagan will talk to one of the officers involved. That's coming up on "CNN LIVE TODAY."

And AMERICAN MORNING will be back in a moment.

(COMMERCIAL BREAK) COLLINS: Here's Aaron Brown now with a preview of what's coming up tonight on "NEWSNIGHT."

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

Tonight on "NEWSNIGHT," 35 years ago today the world was transfixed by pictures of men landing on the moon. Tonight, we'll hear from those who helped make that piece of history possible, those who reported it and those who simply watched it in wonder. We'll also look at where the space program stands today.

All that, plus all the day's top news, morning papers, and everything else that makes "NEWSNIGHT" "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern -- Heidi.

COLLINS: All right, Aaron. Thanks. We'll be watching.

HEMMER: We're out of time.

COLLINS: We're out of time.

HEMMER: To Daryn Kagan at the CNN Center in Atlanta, picking up news from here.

We'll see you again tomorrow, 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 20, 2004 - 8:59   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. The man in charge of national security under President Clinton takes classified documents while getting ready for the 9/11 investigation. The question today is why.
Hard choices for Martha Stewart. Would going straight to prison be the best way for her to serve her own company?

(BEGIN VIDEO CLIP)

MARTHA STEWART, MARTHA STEWART LIVING OMNIMEDIA: My company needs me. I would like to get back to work. I would like this to be over.

(END VIDEO CLIP)

HEMMER: This morning, more on the exclusive interview last night with CNN and Larry King.

And after a hostage negotiation goes nowhere, police take the direct approach to reach a gunman. How it all turned out this hour on AMERICAN MORNING.

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

HEMMER: Nine o'clock here in New York. Good morning, everyone, and welcome back to our third hour. Soledad is out resting in the final weeks of her pregnancy. Heidi Collins here in New York.

A lot to talk about again this hour. Former National Security Advisor Sandy Berger under a criminal investigation for taking classified documents out of a screening room. We'll talk to former White House Special Counsel Lanny Davis about how serious this matter could be in a moment.

HEIDI COLLINS, CNN ANCHOR: Also, we'll meet a 67-year-old man who retired from the Army and may now be called back to active service. We'll find out why the Army singled him out and whether he wants to serve again.

HEMMER: Also this hour, moon memories. We'll look at a 35th anniversary of Apollo 11's landing on the moon. Miles O'Brien standing by to talk about the celebration today, and a very proud day for everyone at NASA.

COLLINS: Jack Cafferty now.

JACK CAFFERTY, CNN ANCHOR: Supposed to be going back there pretty soon, right, to the moon? Didn't the president say he wants to go back there?

COLLINS: Yes.

CAFFERTY: There you go.

E-mails -- there is a little known perk in the U.S. military: free cosmetic surgery. We're not talking about reconstructive surgery, where, you know, wounded troops would be, you know, provided services to help them reconstruct themselves. We're talking about nose jobs, boob jobs, liposuction, all free. Good idea or not -- am@cnn.com.

HEMMER: All right, Jack. Thanks for that.

The story now in Washington with a lot of attention today, Samuel Berger, national security advisor to former President Bill Clinton, is being investigated over whether or not he improperly removed classified documents while getting ready for his own testimony before the 9/11 Commission. Bob Franken tracking this story live in D.C.

Bob, good morning there.

BOB FRANKEN, CNN CORRESPONDENT: Good morning, Bill.

And FBI agents with a warrant searched Berger's house in February, looking for documents. Berger is the former national security advisor to President Clinton during the second Clinton term. He's also an advisor to the Kerry campaign now.

He had gone to the National Archives in July, September and early October, partly at the behest of former President Clinton, to research documents that might be relevant to the 9/11 Commission report. Later in October, after Berger had left, archives officials told him some documents were missing. Berger says that he inadvertently took some documents, along with notes, from the archives.

Now, these are very, very highly, highly-classified documents. There are two law enforcement sources, however, who tell CNN chief justice correspondent, Kelli Arena, that Berger was seen stuffing some of the documents in his socks.

Nevertheless, Berger has put out a statement which reads, "I inadvertently took a few documents. I also took my notes on the documents reviewed. When I was informed by the Archives there were documents missing, I immediately returned everything I had, except for a few documents that apparently I had accidentally discarded."

Now, these are extremely sensitive documents. According to one government source, they hold the highest classification. They're called "code word," which is higher that a Q (ph) rating. And one government source said that Berger is no rookie, he should not have had any ability to make a mistake about the sensitivity about these documents and how to handle them. As for Berger's testimony, he appeared before the 9/11 Commission in March.

(BEGIN VIDEO CLIP)

SAMUEL BERGER, FMR. NATIONAL SECURITY ADVISER: During this millennium period, plots were uncovered in Amman against the Radisson Hotel and religious sites, and against the Los Angeles Airport. Terror cells were broken up in Toronto, Boston, New York and elsewhere.

(END VIDEO CLIP)

FRANKEN: The subject of these documents was the post-action reports on how the al Qaeda threat to the United States was handled during the millennium. You'll recall that officials say they were able to arrest a person and stop him from coming into the United States with the intent to bomb, perhaps, the Los Angeles International Airport.

Now, according to a government source, the White House was never informed of this investigation but the 9/11 Commission was. As for claims that the Justice Department or somebody in the Bush campaign may have leaked the word of this investigation, an administration source says that is simply not true -- Bill.

HEMMER: Bob, thanks for that. Bob Franken in Washington. A lot to consider now, Bob, given your reporting there.

Lanny Davis, a former White House special counsel to President Clinton, he's our guest now live in D.C.

And welcome back, Mr. Davis, here to AMERICAN MORNING. Have you spoken with Samuel Berger?

LANNY DAVIS, FMR. WHITE HOUSE SPECIAL COUNSEL: I tried calling him this morning. Look, there is absolutely no doubt that Sandy Berger is a person of impeccable honesty and integrity. He spent nights and 24-hour time periods before the millennium doing, I think, a critical job in thwarting a terrorist attack between 1999 and 2000 New Year's Eve.

And what we're told -- and the only thing I know is what I've read -- is that these were widely-circulated memos in the government. He took copies of those memos inadvertently in his own notes. And there's absolutely no basis for suggesting that there were any national security issues here or harm done here.

I'm suspicious about who this government source is who my friend Bob Franken is referring to, and why they're speaking today on the day of the 9/11 Commission and the week before the Democratic convention. And the denial that there's anything coincidental about this leak, I am just a little skeptical about.

HEMMER: What could this error in judgment cost him?

DAVIS: Well, it's a mistake. It's not an error in judgment, necessarily. He may have just done something inadvertently. And we know it -- Sandy Berger, as an outstanding person who's been involved in national security issues, played a critical role in protecting the country, and there is nobody on either side of the aisle that thinks there's anything even possible that Sandy could have done deliberately here.

HEMMER: Help us -- help us make sense of this, though. He's the former national security advisor. He would know when he goes in and looks at certain documents if they have the highest classification of secrecy that they should stay there and stay secret.

DAVIS: Well, what we know is that he made a mistake. What we also know is that this highest classified document that was penned by Mr. Clarke was widely circulated in the government and since been widely reported on, and was not revealing any of the nation's secrets.

So, while we can use language like, "highly classified," and we have some anonymous government source talking to the media about this on the day of the announcement of the 9/11 Commission -- the FBI's been at this since last January -- this seems very suspicious to me.

HEMMER: What about this report from Kelli Arena that he was stuffing documents in his socks? And put that with the statement that Samuel Berger made on the screen, we can put it up. Bob Franken just reported it.

If you go to the end of this statement -- well, let's read it. "I inadvertently took a few documents from the Archives. I also took my notes on the documents reviewed. When I was informed by the Archives there were documents missing, I immediately returned everything I had, except for a few documents that apparently I had accidentally discarded."

What's to explain why he would get rid of them?

DAVIS: He said "accidentally," and the explanation is the truth that it was accidental. But look what you have just done, Bill, with all due respect. You just referred to an anonymous comment by somebody who doesn't have the guts to put his name behind that somebody stuffed something in his socks.

Suppose that person is lying? Bob Franken doesn't necessarily know his name. You don't know his name, yet you just quoted that on national television. I suggest that person is lying. And if that person has the guts, let's see who it is who made the comment that Sandy Berger stuffed something into his socks.

HEMMER: Yes. And with all due respect, sir, I respect the people that work for this network and the reporting they conduct. And if Kelli Arena says it based on the evidence she got this morning, then we report it.

DAVIS: Excuse me, Bill. I'm not questioning that she is reporting accurately. That's not fair.

I said that somebody told her something that is a lie, in my opinion, that Sandy Berger was caught stuffing something into the socks. And the person who told your reporter that doesn't have the guts to put his name out there on the record. That's all I said.

HEMMER: All right, Lanny. Thanks for coming and talking with us this morning. Clearly, there's a lot we do not know about this story. But as we get through the day here, perhaps we'll get more answers. Lanny Davis in D.C., thanks again.

Here's Heidi.

COLLINS: For the first time since being sentenced for lying, conspiracy and obstruction of justice on a stock sale, Martha Stewart spoke out last night. She talked of her plans to serve her sentence of five months in a federal prison and five months on house arrest, as well as two years probation and the fine she received.

National correspondent Frank Buckley now.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Martha Stewart, sentenced to five months in prison and five months of home detention, vowed an appeal. Stewart told Larry King she hasn't ruled out simply serving her sentence.

STEWART: On the one hand, business, Wall Street, advertising, they would like to see finality. They would like to see an end to all of this.

LARRY KING, HOST, "LARRY KING LIVE": Obviously.

STEWART: I, as a person with rights, with a belief in the judicial system and fairness, think that an appeal is the way to go. So, what do I do?

BUCKLEY: Stewart, whose legal troubles over the past couple of years provided cable TV and tabloid news with an endless source of stories, struck back at the pundits.

STEWART: Pundits are out there saying, oh, she should go in. Do they know what it's like to go to jail?

BUCKLEY: She struck a softer cord towards those who described her as "arrogant."

STEWART: I wish I were perfect. I wish I were just the -- you know, the nicest, nicest, nicest person on earth. But I'm a businessperson, in addition to a creator of domestic arts. And it's an odd combination. No excuse. But if I were a man, you know, no one would say I was arrogant.

BUCKLEY: And in true Stewart style, she promised a new product would emerge from her legal troubles.

STEWART: I think I'll write a book. Because I think it could be helpful to other people just -- just about -- just about what lawyer to choose, how to behave. How to attend an interview. I mean, there's things that -- you know, there's no how-to book about this. BUCKLEY: The final chapter in Stewart's legal tome still to be written.

Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: Martha Stewart has stepped down as CEO of her company, but remains its largest stockholder and chief creative officer.

HEMMER: The Air Force says the U.S. plans to develop an experimental bomb aimed at destroying deeply-buried targets beyond the reach of existing bombs. More on the story now at the Pentagon. Here's Barbara Starr yet again.

Barbara, good morning there.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Bill.

Well, it's an idea on paper, but if it comes to pass, it will be a whole new step in the whole notion of shock-and-awe warfare. Indeed, the Air Force is asking for ideas about developing a 30,000- pound bomb.

It's called the Massive Ordnance Penetrator, a 30,000-pound precision-guided weapon that could be dropped by a B-2 or B-52 bomber designed to go after deeply buried or hardened targets. Yes, the idea is to go after targets that might present themselves in North Korea if there was -- was to be a war on the peninsula.

Now, this bomb would be six times bigger than the current penetrating weapon that you see being dropped here. That's a 5,000- pounder. But after the weak in Iraq, when they went and looked at some of the sites they bombed, and found that Iraqi underground targets were not fully destroyed, they realized they had to go further and develop an even bigger bomb.

And by the way, this one is referred to as the Big Blue. It is different than the other bomb you might remember, the MOAB, the mother of all bombs. That's a 20,000-pounder, and that was designed for above-ground targets. But this one, specifically for those underground targets that might be a future threat in places like North Korea -- Bill.

HEMMER: How big is that threat considered today, Barbara?

STARR: Well, it's quite interesting. What we have learned is, while nothing is imminent, it is still something that war planners worry deeply about.

When the war in Iraq erupted, there was so much concern about the possibility that the North Koreans could take some sort of destabilizing action. The Air Force actually deployed about a dozen advanced missiles with 1,000-pound warheads. They put them with a B- 52 bomber wing. These were missiles not yet in the regular inventory. They put them there just in case North Korea engaged in some destabilizing action, they would have something to use there against those underground targets in North Korea. Right now, there is wide acknowledgement there's no existing weapons that really can destroy some of those North Korean targets -- Bill.

HEMMER: Barbara Starr at the Pentagon. Barbara, thanks -- Heidi.

COLLINS: Thirteen minutes past the hour now, and time for a look at some of today's other news with Daryn Kagan.

Hi, Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, let's start with beginning by a day of celebration with the Philippine embassy in Baghdad, as former hostage Angelo de la Cruz is freed. Insurgents released the Philippine truck driver outside another embassy today. He's expected to leave Iraq tomorrow, nearly two weeks after being captured.

Meanwhile, a former hostage from Egypt is enjoying his first full day of it freedom after being released yesterday.

President Bush is accusing Iran of supporting Islamic militant groups. At the White House yesterday, the president said the U.S. has not ruled out a possible connection between Iran and the September 11 terror attacks. That, despite CIA reports that no evidence of a link exists.

To California now. An electrocuted bird is being blamed for sparking a fire that is destroying some 6,000 acres in Los Angeles County. Crews are using helicopters and bulldozers to battle the blaze that's now about half contained. Nearly all the evacuated residents returned home last night. More progress is expected today, with temperatures expected remain cool in southern California.

Let's go to Africa now, where talks aimed at ending violence in Sudan could resume by the weekend. Talks between the government and rebels in the Darfur region broke down over the weekend. Also, a new report from the group Human Rights Watch says the documents show the government is supporting militias in that area which are accused of carrying out a campaign of mass murder.

And finally, pictures that show a dramatic ending to a South Carolina hostage standoff. Yes, that is a bulldozer police are using to smash through the wall of a convenience store. Watch this.

Inside, an armed man had taken the female owner hostage. The suspect then struggled with the woman. But a happy ending for her. She finally was able to escape unharmed after 13 hours holed up with that suspect, by the way. The suspect was shot during the operation. He is awaiting charges while in the hospital.

The wires, Bill, say that this man was just recently released after serving 14 years in prison. HEMMER: But she's OK.

KAGAN: She is OK. I'm sure pretty shaken -- shaken up. She's the store owner, and people around there say she's just the nicest woman. You come in the store, you don't have what you need, she let's you take it and come back and pay later.

HEMMER: Well done. Thank you, Daryn.

Fifteen minutes past the hour now. Along with the thousands of retired veterans being called up to bolster troop strength around the world, the Pentagon has contacted a 67-year-old retired Army psychiatrist. Dr. Charles Ham recently given a physical, waiting to hear about a return to active service.

Earlier today, I talked with Dr. Ham from Columbia, South Carolina.

(BEGIN VIDEOTAPE)

HEMMER: Good morning, Dr. Ham.

DR. CHARLES HAM, RETIRED ARMY COLONEL: Good morning, sir.

HEMMER: Tell me about the surprise phone call you got from the U.S. Army.

HAM: I got a call at my office one day when I was working, and they said they needed me back on active duty.

HEMMER: What was your reaction when they phoned you?

HAM: Man, I was quite surprised. I've been retired seven years. And I just thought I was through. But if we're at war, I'm ready to go help my country. But I sure was a little surprised.

HEMMER: Let me understand. You retired a full colonel, correct? You're age 67 now. You're a grandfather.

HAM: Yes, sir.

HEMMER: Are you fit to serve?

HAM: I think I am. I can physically get around fairly well.

HEMMER: As a doctor, what could you offer the U.S. Army at this point?

HAM: I'm a psychiatrist. And the person that called me said they had a critical shortage of orthopedic surgeons, general surgeons and psychiatrists, and we needed to go and help support the troops. And I really had asked them if they could find somebody younger it might be better, but they called me back and said they needed me.

So I'm ready to do my part. If we're at war, I'm ready to do my part. HEMMER: We are told that an Army mental health advisory team finds a higher suicide rate among those serving in Iraq than in other parts of the world. Would you be able to assist in an area like that, doctor?

HAM: I would do my part trying to help understand what causes that and how to better treat it. I would be happy to do my part, sir.

HEMMER: All right. You served 41 years in the Army, is that right, before you retired?

HAM: In the Army Reserves, Active Reserves, got called in during the Vietnam conflict, and back in Saudi 1.

HEMMER: What do you think that experience can do for others younger than you serving today?

HAM: Well, I got to see during the draft some people who really didn't want to be in the military. And during Saudi, got to see how a short conflict goes.

But also in studying at the command general staff in the war college, you learn how to help people face their fears and not let it develop into PTSD as best we can. Back (ph) policies, and you study all that stuff to try to help the troops as best we can in support the fighting strength.

HEMMER: Help me with the acronym there. PTSD is what?

HAM: Post-Traumatic Stress Disorder.

HEMMER: If you were called back to duty, will you have the option to go to Iraq?

HAM: I was told, if you're called back, I would go to either Iraq or Afghanistan for 90 days, boots on the ground. I guess that means in country. Or, if I didn't do that, I would be given an option to be in (UNINTELLIGIBLE) stateside for a year.

And I have no earthly idea. That was a preliminary suggestion that the person called me told me.

HEMMER: What does your wife have to say about this?

HAM: She's been very supportive through the years, and she says that if that's what I need to do, that she'll be happy to support and do her part back at home base.

(END VIDEOTAPE)

HEMMER: Dr. Ham from earlier today. An Army spokeswoman says that Dr. Ham is subject to being recalled because he's an officer. There's no age limit for officers they serve -- to serve rather. He turns 68 on February 25.

CAFFERTY: Wow. COLLINS: And checking in with Jack now and the "Question of the Day."

CAFFERTY: Pretty amazing.

COLLINS: Yes, it's amazing.

CAFFERTY: Speaking of the military, "The New Yorker" has got a story this week. All military personnel can get free cosmetic surgery, including face-lifts, nose jobs, breast enlargements, liposuction.

In the years 2000 to 2003, Army doctors performed 496 breast enlargements and 1,361 liposuctions. For the breast enlargements, the patients must supply their own implants. You've got to bring those with you because they don't provide those. The Army spokeswoman says that they do these procedures so the surgeons can have somebody to practice on.

Good idea or not? Should the military pay for cosmetic surgery?

Bob in Leavenworth, Kansas: "No. Too many retirees are waiting for healthcare we were promised. Some general's wife can get big boobs elsewhere."

Linda in Dover, Delaware: "I'm so glad to hear this. Is it opened to retired dependents? I'm a 56-year-old grandmother and I need so much tucked and reduced and liposuctioned. My only question is, do I need to bring my own trash bag to haul it all away?

Emy in Collingswood, New Jersey: "If I need a breast reduction surgery after cancer or an injury, I would want a surgeon who had experience in breast augmentation."

And Michael in Orlando: "Maybe the Army's new motto should be, 'Be the breast you can be.'"

(LAUGHTER)

COLLINS: Oh, man.

CAFFERTY: So silly. It's all I have at this time.

HEMMER: Fun, but silly.

CAFFERTY: Yes.

HEMMER: A check of the weather. Here's Chad again at the CNN Center.

Good morning.

(WEATHER REPORT)

HEMMER: All right, Chad. Thanks for that. In a moment, a new drug meant to treat heart failure is about to hit the market sooner than expected. Sanjay knows a bit about it, and he'll stop by with more in a moment.

COLLINS: And an alibi takes center stage in the Scott Peterson trial. But it isn't Peterson's we're talking about.

HEMMER: Also ahead, a special anniversary today. And here's Miles on that.

Good morning.

MILES O'BRIEN, CNN SPACE CORRESPONDENT: Good morning, Bill. Welcome to the moon, or sort of.

Actually, this is the Smithsonian Air and Space Museum on Washington's Mall. I'm in front of the lunar module. Thirty-five years ago today, where were you? If you were alive, you'd remember this scene and this odd craft.

We'll tell you about how NASA is looking back and looking forward, and who's going to get some moon rocks today. Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Thirty-five years ago tonight, Neil Armstrong took that one small step for man, that one giant leap for mankind. Walking on the moon ranks among the most thrilling moments in history. Miles O'Brien knows it all too well. Live at the National Air and Space Museum in D.C., good morning there -- Miles.

O'BRIEN: Good morning, Bill. It was an event to remember. Really, an event of the century, as Neil Armstrong and Buzz Aldrin, depicted behind me here at the Air and Space Museum in Washington, set foot on the moon 35 years ago today.

It actually happened -- the landing occurred a little after 4:00 Eastern Time. The moon walk, a little before 11:00 p.m. Eastern Time on that day. It was quite a day, but it began with an epic journey four days before.

(BEGIN VIDEOTAPE)

O'BRIEN (voice-over): The wake up call came at 4:15 on the morning of Wednesday, July 16, 1969 -- Neil Armstrong, Buzz Aldrin and Michael Collins, for precisely 25 minutes, they ate their breakfast -- steak, eggs, toast, juice and coffee. Collins called the atmosphere "studied casualness."

Then it was time to suit up. Once locked inside, they were in a cocoon. In a metal suitcase, they carried their air supply. They walked to the crew transfer van, seeing a group of NASA workers and photographers, but hearing only the sound of their breathing.

They drove slowly to Launch Pad 39A, about eight miles and 20 minutes away. Their launch window would open at 9:32 and close 14 minutes later. The timing was precise so four days later they would arrive at the Moon's Sea of Tranquility with the sun behind the lunar module and low on the horizon for optimal visibility.

UNIDENTIFIED MALE: And all is still go...

O'BRIEN: Twenty thousand VIPs, 3,500 members of the media, a million people along the Florida coast and millions more watching at home all focused on this amazing spectacle. In the launch control center, the father of the Saturn 5, Wernher von Braun, looked on as launch director Rocco Petrone polled his troops. "Go!" came the reply from every post and from the crew.

They were on their way. Their destination was destiny.

NEIL ARMSTRONG, APOLLO 11 ASTRONAUT: Tranquility Base here. The Eagle has landed.

(END VIDEOTAPE)

O'BRIEN: They landed with a little less than 30 seconds of fuel in the gas tank. Neil Armstrong had to take manual control over that lunar module in order to -- to avoid a crater and boulder field. There were so many unknowns, and later Neil Armstrong said the landing itself is what concerned him the most.

Thirty-five years later, NASA is contemplating a return to the moon, a different kind of mission. But nevertheless, for the first time since we have celebrated this anniversary, NASA is looking toward going back and once again putting footprints on the lunar dust -- Bill.

HEMMER: Pretty basic question, Miles. Where are the rocks 35 years later?

O'BRIEN: Well, there are about 850 pounds worth of rocks. And if you divide that by the $100 billion it cost, I think it's about $118 million a pound. So, they're very valuable rocks.

Most of them are in a special facility in Houston. But over the years they've been given away to museums and so forth. Richard Nixon gave them to several heads of state. And tonight, 38 members of the original astronaut classes and Walter Cronkite will receive little pieces of those rocks as a commemoration.

HEMMER: Wow. What a commemoration that will be. Hey, enjoy today, all right?

O'BRIEN: I will.

HEMMER: Thank you, Miles. Miles O'Brien in D.C. -- Heidi.

COLLINS: Still to come this morning: The latest in the Scott Peterson trial. It looks like the defense has found some holes in the prosecution's case.

Also ahead: A dramatic ending to a high-speed chase. You don't want to miss.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: Just about half past the hour now on this AMERICAN MORNING.

HEMMER: Yes. Opening bell ringing on Wall Street right now. Get you down to lower Manhattan.

The Dow Jones industrial starting today at 10,094. They're down about 46 points in trading from yesterday. And Alan Greenspan goes back to the Hill today. Watch his testimony in the continued watch for interest rates. If they're going to get a bump in interest rates, when's it going to happen?

Nasdaq market site: 1,883, up about a half point in trading yesterday. So, stocks open for business now here in New York City.

And welcome back, everyone. Good morning again here.

COLLINS: I have a little agreement with Mr. Greenspan -- after I buy the house. So, we'll be good to go there.

In just a few minutes now, we will get an update on the Scott Peterson trial. Defense attorney Mark Geragos hammering away at more prosecution witnesses yesterday. The focus now on known sex offenders in the area. We'll tell you all about that.

HEMMER: Also, Sanjay is back at home, talking about a new heart drug so effective in trials that now it may be rushed to market. And Christine was talking about this earlier today.

COLLINS: Yes.

HEMMER: It really shot up yesterday in trading on the New York Stock Exchange.

COLLINS: It sure did.

HEMMER: So, we'll get to that.

COLLINS: Also, a little later, we'll have our interview with Todd Hamilton, this guy, the champ, the winner of this year's British Open. He and his wife stopped by just a little while ago. He told us about the strategy that gave him his first major.

HEMMER: He's wallowing in that, as well he should.

Meanwhile, it is week eight of Scott Peterson's double murder trial, and the defense continues on the defensive. Peterson's lead attorney attacking the investigation, contending that physical evidence is lacking and that the police work is shoddy.

Here's Rusty Dornin in California. (BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Different day, same witness, same line of questioning. Again, defense attorney Mark Geragos drove home the message that investigators found little or no evidence that linked Scott Peterson to the murder of his wife.

Detective Dodge Hendee said yesterday that stains suspected as blood in the back of Peterson's truck and on the steering wheel were not caused by blood. However, one stain on the truck door did test positive. And he testified Scott Peterson told one of the detectives he had cut his hand.

Geragos fired questions at Hendee about a demonstration where investigators wanted to see if someone could throw a 150-pound person, what they believed to be Laci Peterson's weight, out of Peterson's boat. They never did it. Geragos claimed police didn't do it because he said it was impossible. Legal observers say prosecutors probably had a good reason for not doing the experiment.

DEAN JOHNSON, LEGAL ANALYST: Maybe as a strategic move they figured let's not even try it, because if we get a bad result, then it's going to come back to bite us on the back of the neck in the middle of trial.

DORNIN: Detective Ray Coyle was recalled to the stand. Coyle says there are still 25 sex offenders and parolees out of more than 300 that he has not been able to contact or account for. The defense claimed investigators did minimal follow-up with offenders.

In a police report, one offender told investigators he murdered someone named Lisa Peterson in Modesto and dumped the body in the Bay Area. But he was eliminated as a suspect due to prior mental illness. Detective Coyle told the court the sex offender was not eliminated in his mind, nobody is.

(on camera): Again, through questions to prosecution witnesses, a chance for the defense to expound on their theory someone else killed Laci Peterson.

Rusty Dornin, CNN, Redwood City, California.

(END VIDEOTAPE)

COLLINS: The success of a new drug designed to prevent heart failure in African-Americans patients means it could be on the market a lot sooner than expected. Dr. Sanjay Gupta now with us from Washington with details on this.

Very exciting, Sanjay.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: It is very exciting. The drug is called BiDil. And up until yesterday, it was in phase three clinical trials. Those trials being stopped yesterday.

Heidi, two reasons that trials typically get stopped: one, the drug doesn't work very well at all; or two, it work so well, that it would be unethical not to give the drug to everybody.

Now, there's a couple of reasons there. They actually studied this, and 1,000 -- 1,100 actually -- African-Americans, and found that they wanted to stop the trial because of survival rates increased and because of the drug safety.

Now, all of the outcomes of the study are not available yet. Those are going to be available probably in October. But as you said, Heidi, the manufacturers of this drug, NitroMed, they're excited about it, saying that they'd like to take this to market and get FDA approval as soon as possible -- Heidi.

COLLINS: Why, though, the need, Sanjay, for a drug targeted to specifically African-Americans?

GUPTA: Yes, you know, that's a -- that's an interesting point. There's a couple of things about that. One is that it appears that heart disease and heart failure specifically seem to affect African- Americans disproportionately higher. They're more likely to get it, they're more likely to suffer from it, and more likely to actually die from it, as well.

They get it at a much younger age than the average population. The reason behind that, a little less clear, though, Heidi. There's some -- some belief that there is a chemical known as Nitric Oxide. The name's not that important, but what it does, it basically keeps your blood vessels wide enough to allow blood to flow through. African-Americans seem to have lower levels of this, making them more of a setup for -- for heart attacks -- Heidi.

COLLINS: But technically, doesn't having heart failure mean that you have had a heart attack, or that it's fatal, at least, heart failure?

GUPTA: Yes, you'd think, right? If your heart fails, that's probably not going to be a very good thing. And it's not a good thing, but it doesn't necessarily mean that it's going to be fatal. There are lots of different type of heart failure, lots of different degrees of heart failure.

Some of the signs of heart failure, breathlessness, for example, where you can't breathe as well. You're actually building up fluid in your lungs. Excessive fatigue, swelling, a lot of people notice swelling in their -- in their legs or their feet, for example, and uncomfortable sleep.

But heart failure might mean often that your heart is still working, though not nearly at the rate or the level that it used to be working. This medication, BiDil, again, really specifically targeting, getting more blood flow to a heart, and possibly taking care of some of those symptoms -- Heidi.

COLLINS: All right. Dr. Sanjay Gupta, thanks so much for that.

GUPTA: Thank you. HEMMER: Get a break here. In a moment, what's a name worth? At least $20 million in you're Microsoft. "Minding Your Business" in a moment on that story.

COLLINS: Also ahead, if you're a 38-year-old rookie, you might as well make the biggest splash you can. We'll hear from the newest champion of the British Open ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone.

A legal challenge for Microsoft solved by the simple writing of a check. Christine Romans working for Andy Serwer today. She's "Minding Your Business."

Good morning. First, check of the markets. Greenspan's talking today on Capitol Hill?

CHRISTINE ROMANS, CNN FINANCIAL CORRESPONDENT: Absolutely, and a lot of earnings news. So we'll watch to see if the market is sort of just stuck, hypnotized, waiting for Mr. Greenspan to speak at 2:30. So far, it looks that way.

Dow up about eight points, 10,102. Don't forget stocks are down this year. The Nasdaq down about six percent, the Dow down about three percent. So it's been tough going for the markets, and we'll see if Mr. Greenspan or earnings can get some excitement going there.

HEMMER: Microsoft writes a check for $20 million.

ROMANS: This is amazing.

HEMMER: Who's the lucky recipient?

ROMANS: A company called Lindows, a company that Microsoft had sued for copyright violation back in 2001. And Microsoft, instead of going through with that lawsuit, has decided it will just pay $20 million for Lindows to change its name. Lindows will now become Linspire in September and will be $20 million richer.

You know, Microsoft, would have to prove that Windows, it owns that name. And it does have a copyright on it. But the word "windows" wasn't invented by Microsoft. I'm thinking about starting a company called Macrosoft.

HEMMER: You like that?

ROMANS: Yes, to see if maybe that they could pay my a cool mil to taking that off my hands.

CAFFERTY: There you go.

(CROSSTALK)

HEMMER: Well, thanks, Christine. ROMANS: You're welcome.

COLLINS: Jack Cafferty now and the "Question of the Day."

CAFFERTY: The "Question of the Day": Should the military pay for cosmetic surgery? It's free to enlistees and members of the service. Not reconstructive surgery. We're talking nose jobs, liposuction, boob jobs and the like. Should it be free to members of the military?

Erin-- pardon me -- in Virginia Beach writes this: "Absolutely. The military doctors get paid the same salary whether they do 10 or 100 plastic surgeries a day. So why not put them to work and get their skills up, unlike a civilian doc who tries to pump out as many surgeries as they can, because they are paid on a case-by-case basis?"

Rex in Fort Wayne, Indiana: "Why are the military surgeons busying themselves with cosmetic surgery when there are many wounded veterans coming back from Iraq who are on months-long waiting lists for desperately needed surgery for their injuries?"

Gayle in Columbia, South Carolina: "These people put up with substandard housing, low pay, some even on food stamps, long separations and dangerous working condition. I, for one, do not begrudge them anything they can get for free. Let the doctors hone their skills."

And Rich in Long Island writes: "It's not just a job, it's another full cup size."

A little play on the military slogan, you see.

COLLINS: It is. All right.

Still to come this morning...

CAFFERTY: You don't know quite what to do coming out of these, do you?

COLLINS: I know. I don't know how many times...

CAFFERTY: It's all right. Soledad can't handle it either.

COLLINS: ... you said "boob job" throughout this show. I think it...

(LAUGHTER)

(CROSSTALK)

COLLINS: OK. Brought back from the edge -- yes, we are -- a dramatic ending to a high-speed chase. We're going to show you the video and tell you what happened next on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: I want to take a moment to check the weather now for the day ahead. Chad Myers is at the CNN Center with the very latest.

Hi, Chad.

(WEATHER REPORT)

HEMMER: A check of the news headlines now. Daryn Kagan at the CNN Center in Atlanta starting again with news out of Iraq.

Daryn, good morning there.

KAGAN: Good morning to you, Bill.

Philippine President Gloria Arroyo says that a recently freed hostage in Iraq is in good health. Truck driver Angelo de la Cruz was released in Baghdad yesterday, one day after the Philippines completed pulling its troops out of Iraq.

Also, an Egyptian truck driver who was also being held hostage was released yesterday. That coming after his company agreed to no longer do business in Iraq.

Vice President Dick Cheney's former company, Halliburton, is under investigation in connection with business dealings in Iraq and Iran. The government is investigating one of the company's subsidiaries for possible overcharges in Iraq. Prosecutors are also seeking documents regarding trade with Iran, which is restricted by U.S. sanctions. The company denies any wrongdoing.

Back here in the U.S., attorneys in the Kobe Bryant sexual assault case don't want cameras in the courtroom. A lawyer for Bryant's accuser said yesterday that too much personal information about Bryant's accuser has already been released, prompting her to consider dropping the case at least twice. Earlier, Colorado Supreme Court ruled that the media could not publish transcripts of the trial set to begin on August 27.

Well, if diamonds are a girl's best friends, then we know of one that will be very popular. A gem four times the size -- it is four times the size of the famous Hope diamond, which is seen here. It has been found in the west African country of Guinea.

That particular stone, 182 carats. About -- that's about -- in case you're trying to measure for the ring -- as big as a computer mouse. The gem is being held at Guinea's Central Bank, if you're looking for that.

Finally, let's look at these pictures. A dramatic rescue in Green Bay, Wisconsin. A state troop saving the life of a woman. Watch this.

She tries to jump off the bridge. He goes and hangs on to her. Now, what you can't tell from the pictures, the river is 200 feet below. That's the Fox River below.

The woman apparently suffering from post-partum depression. Her family tipped off police, worried that she might be suicidal. The state trooper said it was the most eventful day he has ever had.

Bill, an incredible story. Wouldn't you love to talk to that state trooper?

HEMMER: No question about it. And you could -- he was not letting go.

KAGAN: No. Well, get this...

HEMMER: And time after time there, yes.

KAGAN: He's my guest coming up in about an hour.

HEMMER: Excellent.

KAGAN: "CNN LIVE TODAY."

HEMMER: Good deal.

KAGAN: Yes.

HEMMER: We'll see you then, Daryn.

KAGAN: Yes.

HEMMER: Thanks much.

One hundred and six days to go in the countdown to the November 2nd election. President Bush campaigns in Iowa and Missouri today. He lost to Iowa in 2000, won Missouri by only three percentage points.

The vice president, Dick Cheney, in Missouri yesterday, charged that senators Kerry and Edwards side with lawyers over doctors and their patients. Meanwhile, on the other side, John Edwards fired back that the Democratic ticket was on the side of families and not insurance and drug companies.

John Kerry, back in his home state of Massachusetts, in Nantucket, preparing for his speech at the convention in Boston. That speech goes down on Thursday of next week. Live coverage all week here on AMERICAN MORNING.

I'll be at the FleetCenter starting live at 7:00 a.m. Eastern Time on Monday morning. We'll have it all for you. If it moves in Boston, you'll see it here.

COLLINS: That's right.

Still to come, out of obscurity and into the limelight. It took Todd Hamilton 17 years as a pro to make the cut with PGA. But over the weekend, in Scotland, he was the greatest player in the world. We'll hear his story next.

(COMMERCIAL BREAK)

COLLINS: For years, he toiled as a pro golfer in the Far East, but in just a matter of days Todd Hamilton went from obscurity to international celebrity by winning the British Open. The 38-year-old Hamilton stunned the golf world with his victory last weekend in Scotland in a playoff to claim one of golf's four major championships.

Earlier on AMERICAN MORNING, Todd joined Bill and me, along with his wife, Jacque. I asked the British Open champ if his big win has sunk in yet.

(BEGIN VIDEOTAPE)

Nice job!

Todd Hamilton, now the pride of Oquawka, Illinois, joins us with his wife, Jacque.

Thanks for being here, guys. And this is a nice little trophy you got there, the Claret Jug. Look at that thing.

TODD HAMILTON, 2004 BRITISH OPEN CHAMP: I'm trying to pinch myself to -- to get over the feeling that, hey, you've done something kind of special here. I think when I get home and see -- see my friends and play golf with my friends, I think then it will start to set in.

HEMMER: Do you let people hold that thing?

HAMILTON: Sure. I'll get it for you, or you can have it for as long as you want.

HEMMER: Yes? That is beautiful.

COLLINS: As long as you want.

HEMMER: Yes. Thank you. On 18, when you bogeyed, did you think you were done?

HAMILTON: No. But I knew that it was going to be a tough challenge, the four holes. I was kind of glad that it was actually four holes instead of one.

HEMMER: Why?

HAMILTON: Because maybe I was feeling a little bit down about the way I finished. I had done so well for so long. To lose it, or at least lose the chance of winning it right there because of one bad tee shot was kind of disappointing.

HEMMER: You know, but to think about the golfers who were there on that leader board -- Ernie Els, Phil Mickelson, Tiger Woods...

COLLINS: Everybody was there.

HEMMER: Everybody was there.

HAMILTON: It was a truly championship leader board, and I'm very glad that my name ended up on top of it. (END VIDEOTAPE)

COLLINS: With the British Open win, Todd's world ranking jumped from 56 to 16.

HEMMER: We gave the trophy back.

COLLINS: Yes, you gave the trophy back. I wouldn't even hold it.

HEMMER: She is one woman with multiple personalities. Actress Sarah Jones stretching her acting muscles to the limit in a one-woman stage show in New York City. It's called "Bridge & Tunnel." Jones plays 14 characters, all immigrants.

Here are just a few.

(BEGIN VIDEO CLIP)

SARAH JONES, ACTRESS, "BRIDGE & TUNNEL": I am a poet, too, but your poetry can take any form you'd like.

It starts riding on the bus. No, really, please. Don't get up.

Please, let me hold your hand. I want to hold your hand.

Hi. My name is Johida (ph). I am 15 years old.

(END VIDEO CLIP)

HEMMER: Recently, Soledad sat down and asked Jones what inspired her tour de force.

(BEGIN VIDEOTAPE)

JONES: The inspiration came from just everywhere. The subway, but also in my own family life, in my own work life. Like many Americans, I've got people from all backgrounds, you know, right there, kind of in my immediate circle of friends and family, and so it was really easy to do the research.

SOLEDAD O'BRIEN, CNN ANCHOR: The 14 characters, are they based on specific people or sort of amalgams of different people?

JONES: They're definitely kind of -- you know, some of them are more combinations of a relative and somebody I knew at work, or somebody I got to meet doing formal research. It's a hodgepodge.

O'BRIEN: Is there somebody you like the most or you identify with the most?

JONES: You know, I'm like a proud parent. I can't say I have a favorite character.

O'BRIEN: Oh, come on. Really? JONES: But I really love in particular the stories from people who you wouldn't think would come out in public and tell their experience like that. So, you know, hearing the Jewish grandmother kind of take the stage, and she's sort of reluctant, but she does it. I love those stories.

O'BRIEN: One of my favorites is Pauline Ling, the Chinese mother who is talking about her daughter. Set up her story a little bit for us.

JONES: Well, she's another person who is sort of an unlikely participant in any kind of public event, but she comes out -- comes out, I use that term -- to talk about her daughter's alternative lifestyle, the fact that her daughter is a lesbian.

O'BRIEN: Let's listen to a little clip.

(BEGIN VIDEO CLIP)

JONES: She's not gay. She's just confused by this American problem. But she tell me, "Mum, it's not American." She said she is in love, in love with a nice Chinese girl.

(LAUGHTER)

JONES: So these are the words I'm waiting to hear from my son, not my daughter.

(END VIDEO CLIP)

O'BRIEN: Parts of it are very funny, but of course there's this underlying connection of compassion, I think, and humanity that connects everybody. Was it hard to work on the accents? I mean, you really -- if you don't get her accent right, no one's going to believe what you're saying about her.

JONES: I think I was so interested in getting the truth of these stories out to the public, to the theater-going audiences, that I wanted to make sure the voices were also accurate. And so I practiced, I studied. I worked really hard, because I know if somebody were portraying my life up there, I'd want them to get it right.

(END VIDEOTAPE)

HEMMER: Sarah Jones with Soledad earlier this month. That show about the immigrant experience in New York getting good reviews, too. She hopes to take it to Broadway. Well, stay tuned -- Heidi.

COLLINS: Coming up on CNN, more on that dramatic rescue in Wisconsin. Daryn Kagan will talk to one of the officers involved. That's coming up on "CNN LIVE TODAY."

And AMERICAN MORNING will be back in a moment.

(COMMERCIAL BREAK) COLLINS: Here's Aaron Brown now with a preview of what's coming up tonight on "NEWSNIGHT."

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

Tonight on "NEWSNIGHT," 35 years ago today the world was transfixed by pictures of men landing on the moon. Tonight, we'll hear from those who helped make that piece of history possible, those who reported it and those who simply watched it in wonder. We'll also look at where the space program stands today.

All that, plus all the day's top news, morning papers, and everything else that makes "NEWSNIGHT" "NEWSNIGHT," CNN tonight, 10:00 p.m. Eastern -- Heidi.

COLLINS: All right, Aaron. Thanks. We'll be watching.

HEMMER: We're out of time.

COLLINS: We're out of time.

HEMMER: To Daryn Kagan at the CNN Center in Atlanta, picking up news from here.

We'll see you again tomorrow, Daryn.

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