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American Morning

Interview With Sen. Pat Roberts About 9/11 Commission's Findings; Relatives Of Lori Hacking Speak Out; Howard Dean Speaks About Democrat Party's Message

Aired July 22, 2004 - 07:00   ET

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


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


BILL HEMMER, CNN ANCHOR: Good morning. Nearly three years after 9/11, a new videotape now out showing just how easily five of the hijackers went through airport security.
9/11 the focus across Washington today. The commission investigating the attacks now releasing its final report in just hours.

And the husband of the missing woman in Utah, was he caught in a lie about a major aspect of his life?

All ahead here on AMERICAN MORNING.

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

HEMMER: Good morning, everyone. Seven o'clock here in New York. Soledad resting today. That clock is ticking down, getting closer and closer to the big day, and we're watching it.

HEIDI COLLINS, CNN ANCHOR: We're watching.

HEMMER: Good morning, Heidi. How are you?

COLLINS: Good morning -- great.

HEMMER: We have a full show today. Let's get right to it.

Twenty-one months of work by the commission of 9/11 coming to an end today. The commission issues its final report in a few hours -- 575 pages in length.

And of course, more on the new videotape seen of those hijackers. That was released yesterday afternoon.

COLLINS: Unbelievable -- also, just four days away from the Democratic convention. We're going to talk to former presidential candidate Howard Dean about whether he thinks Democrats have come together with a clear message to voters.

HEMMER: Also, we were talking about this story yesterday. A bit later today, a former Coast Guard commander who worked with two presidents on homeland security -- he says America's ports, and cities and chemical plants are barely safer today than on 9/11. We'll find out why a bit later this hour. COLLINS: For now though, Jack is here. Good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

We've got that new movie "Catwoman" opening tomorrow with Halle Berry. One of the critics called it kitty litter and said it is as sexy as a hairball. So, apparently "Anchorman" will have some competition for crummiest film of the summer. That's not what we're talking about this morning, however.

Besides a shortage of money and soldiers, the military is in great shape in this country. We'll take a look at that in a few minutes.

HEMMER: Thank you, Jack.

Just two hours now before they crashed Flight 77 into the Pentagon, some of the 9/11 hijackers can be seen on a surveillance videotape calmly being checked and then rechecked by airport security.

(BEGIN VIDEOTAPE)

HEMMER (voice-over): It looks like a routine day at airport security, but this was anything but that. Take in the morning of September 11th, 2001, the video surveillance tape shows all five hijackers passing through the metal screening detectors at Dulles Airport.

The grainy images make individual faces difficult to identify, but you can clearly see an airport security officer passing his wand over one of the men. They dress normal. They do not stand out.

Four of the five hijackers bound for the American Airlines plane that would crash into the Pentagon were pulled aside for additional screening -- this after apparently setting off the metal detectors.

There is no evidence screeners questioned them about utility knives, legal at the time and thought to be in their personal luggage. The only hijacker, incidentally, who did not require additional screening was the man believed to have been the pilot after Flight 77 was hijacked -- Hani Hanjour.

The Associated Press obtained a copy of the video from a law firm which represents survivor families. They are suing both the airlines and the security firms.

(END VIDEOTAPE)

HEMMER (on camera): And again, a few hours from now, 11:30 a.m. Eastern time, the commission investigating the 9/11 attacks unveils its final report. That happens today.

Here is some of what we know. The report, almost 600 pages long, 1,500 footnotes, is expected to outline 10 operational opportunities missed by U.S. officials to detect or unravel the plot of 9/11. It will recommend the creation of a cabinet-level intelligence chief along with major changes in both the structure and the culture of the FBI.

In addition to this, a source telling CNN, that report concludes the main reason the U.S. was unprepared for the attacks was because intelligence responsibilities were spread too widely across the government. Kansas Senator Pat Roberts, chairman of the Intelligence Committee, has been briefed on the findings and the recommendations. He is our guest first up this morning.

Senator, good morning to you.

SEN. PAT ROBERTS (R-KS), INTELLIGENCE COMMITTEE: Good morning.

HEMMER: I want to go back to the surveillance videotape from yesterday. Based on the findings of the 9/11 Commission, how did what we see right now happen on 9/11?

ROBERTS: Well, we weren't prepared. The commission, I think, does a good job. It doesn't blame either president; it said mistakes were made. And it listed four failures: a failure of imagination, a failure of capability, a failure to really appreciate terrorism as a real threat -- I think that's the one that certainly pertains to your videotape -- and then also a failure of really not putting terrorism as a priority with a cold war mentality.

But the most important thing about this report: It doesn't look in the rearview mirror and point fingers of blame. It gets on beyond that and makes recommendations.

We just finished, as you know, a 511-page report on the Intelligence Committee, and we made conclusions that beg for reform. These are the reforms.

These are going to shake up Washington. This is a sharp poke in the ribs to Congress to get our act together and also the executive. I think it's a good report.

HEMMER: Also in that report it's recommending the House and the Senate get together on an Intelligence Committee, create one committee as opposed to two separate. Are you opposed to that?

ROBERTS: Well, basically, they recommended two choices: either have a House and Senate committee that has real clout, or put one together. So, we'll have to determine that.

We're going to have this 9/11 Commission come to the committee in September and give their full report. And by that time, we'll be able to check all of the details. We already started hearings yesterday on lessons learned and what we do in regards to the reform of intelligence.

But I will tell you that this report is going to cause a little concern up here in terms of people who really care about turf, and it also is going to call for major change in the intelligence community. So, this isn't tinkering around; this is a major reform after a major report by the Intelligence Committee. HEMMER: Well, you just stepped right into the next area, regarding turf and turf battles in Washington. Is it even logical to think that lawmakers in both chambers of Congress will tear down the walls of division between them and come together on a committee like this?

ROBERTS: Well, let me just give you an example. Tom Ridge at the Homeland Security Agency has appeared before 80 different committees in the Congress. That's ridiculous.

I had a bill two or three years ago to solve that. It got nowhere. I won't say that it is probable, but it is definitely possible. This is a work in progress. And as I've indicated with the 9/11 Commission, it has such bipartisan support, if we're going to get this job done, this is a real catalyst to get that job done. And on the Intelligence Committee, we're ready to accept that challenge.

HEMMER: All right. In that report, you mentioned your previous answer about Congress being fingered in this, as well. Also, recommendations talking about a national counter-terrorism center, a national intelligence director. All of this would have to pass through the walls of Capitol Hill.

Is this a good idea, or is it just more bureaucracy?

ROBERTS: Well, now that's -- you know, that's a good question. On the national intelligence director, there are several members that have bills to do that. We've just had a hearing on that yesterday in the Intelligence Committee.

In regards to a national counter-terrorism center, that's -- basically, we ought to be able to do that because that would be an expansion of what we call the Threat Information Center and the Homeland Security Agency. They call that TTIC.

But basically, it says all intelligence would be funneled through this center so that everybody would know what's going on, and the analysts would have a better product, and our first responders in all the communities around the country would know what's going on.

I think these are doable things. But as I say, this is sort of a sharp elbow in the side of the Congress to say, let's get our act together. And the Intelligence Committee stands ready to do that.

HEMMER: Senator, the reality is, it's July 22nd. It's an election year. We're diving thick into it on Monday morning in Boston with the Democrats meeting there.

Can you even say today whether or not these laws will be passed before this election, or is it safer to say 2005 is a much greater target?

ROBERTS: Oh, I think 2005, I think, is the recommendation of the 9/11 Commission. And it's also the recommendation that Senator Rockefeller and I have agreed after we hold these wise men and women hearings, have the 9/11 Commission in. We're in the midst of a very volatile and very tough campaign. A lot of -- you know, politics is not a bean bag, but there are a lot of hand grenades been, you know, tossed around.

So, I think we ought to educate ourselves, learn the details of this report. And I would imagine that the major action would take place after the election. And that's probably proper.

HEMMER: Senator, thanks. Pat Roberts, Republican from Kansas. Thank you for your time this morning.

ROBERTS: Thank you, sir.

HEMMER: Sure.

That 9/11 report due out later today 11:30 a.m. Eastern time. Complete live coverage when it happens here on CNN -- Heidi?

COLLINS: New video this morning shows seven foreign hostages being held in Iraq. Only six of the hostages appeared in an earlier video, which aired on Wednesday. It comes as new violence erupts in Ramadi and Baghdad.

Michael Holmes is live for us this morning in Baghdad with the very latest.

Michael, hello.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Hello to you, Heidi, and good morning.

That's right. Diplomats here in Baghdad are scurrying around trying to secure the release of those hostages. As you pointed out, yesterday everyone thought there were six. There are now seven, it would appear, from this video: three Indians, three Kenyans, and an Egyptian.

The gunmen holding them say they will start beheading one every 72 hours starting Saturday if the countries that these men are from, India, Kenya and Egypt do not withdraw all of their citizens from Iraq and the men's employer a Kuwaiti trucking company called KGL doesn't cease doing business in Iraq.

None of the nations involved, should point out, are members of coalition forces. And now, their diplomats are trying desperately, as I said, to win the release of these men.

The violence you mentioned -- there has been a couple of major incidents going on, the biggest in Ramadi, 70 miles west of us here in Baghdad. A U.S. Marine patrol came under some heavy fire.

It started with an ambush, a roadside bomb and then what the Marines call a barrage of small arms fire, RPGs. Marines say they killed 25 insurgents, wounded 17, captured 25 others. Fourteen U.S. servicemen wounded, none seriously. And here in Baghdad, really just up the street from where we are now, Haifa Street, some running street battles as a combined operation by Iraqi police, National Guard and U.S. forces tried to round people up. Those people shot back, and there was quite a bit of gunfire, really, today at the end.

Four Iraqis wounded, dozens were arrested, and some arms were seized -- Heidi?

COLLINS: All right. Michael Holmes, thanks for the very latest from there, appreciate that.

HEMMER: Well it's 11 minutes past the hour now.

Back in this country, there are questions again today about the husband of a missing pregnant jogger in Utah.

Twenty-seven year old Lori Hacking, reported missing by her husband on Monday morning. And although police say they are talking to Mark Hacking, they have not called him a suspect.

Lori's mother, Thelma Soares, and Mark's brother, Lance Hacking, both with us this morning from Salt Lake City.

It is an extremely tough time, I'm certain, for both your families. Good morning, and thank you for your time today.

Lance there was a report out today that says your brother checked into a hospital in Salt Lake. Is that the case?

LANCE HACKING, BROTHER-IN-LAW OF MISSING JOGGER: That is the case.

HEMMER: What is his condition, Lance?

HACKING: I have not seen Mark since arriving here in Utah, and I haven't talked to him directly. I know that he is receiving care.

HEMMER: The report says he is under great duress. Is that the report you have, as well?

HACKING: I have -- you know, again I would have to imagine that, you know, being separated from your wife like that would be -- that would be the case.

HEMMER: Detectives yesterday said publicly that he admitted that he lied about entrance into a medical school in North Carolina. Have you spoken to him about that? What more can you add?

HACKING: I think that the thing that caught both our families and friends off guard was that Mark, at some point -- if he felt the need to start some kind of a deception like this, and that he just wasn't willing to come to those who loved him, that we could work it out and figure out what was going on -- I think that's the part that's really left his heart broken and worried about Mark.

HEMMER: What was your response when you found out that was a lie?

HACKING: It was exactly that. It was the big question of, why did -- why did he not feel he could come and approach us who, you know, love him so much.

HEMMER: Ms. Soares, I know it's a tough time for you.

THELMA SOARES, MOTHER OF MISSING JOGGER: Yes.

HEMMER: We spoke yesterday right around this time. And again, I appreciate you coming back with us today. Have you talked to Mark about any of the information that came out yesterday?

SOARES: No, I have not.

HEMMER: Did you know, or at what point did you find out about the lie about medical school across the country in North Carolina?

SOARES: About 10 minutes before the press conference yesterday, when the police shared this information with us.

HEMMER: The families publicly have shown an awful lot of support. We have seen that publicly live here on CNN. How are you two doing together?

HACKING: We remain together. We pray together. We're doing everything together. Every meeting we have is together.

And we're continuing to put that effort and that love as we concentrate our, all of our efforts, in the search for Lori, in terms of sending out the search efforts, the voluntary programs.

That's really where we're trying to put our focus now is just continuing to look for Lori.

HEMMER: Ms. Soares...

SOARES: We continue to...

HEMMER: Go ahead. I'm sorry.

SOARES: We continue to love Mark and are concerned for him, but our focus is still on finding Lori. She's still missing. And right now we have to focus all our efforts.

And hopefully, the media will join with us and help us, as you have been so gracious in doing, in finding Lori. Thank you for your help in this.

HEMMER: Well, we appreciate your response with us this morning as well and taking time for us. I know the volunteer effort has been very impressive in Salt Lake. And our best to both you and your families.

SOARES: Yes.

HEMMER: Thanks. Lance Hacking, the brother of Mark Hacking, Thelma Soares, the wife of the missing jogger -- Heidi?

COLLINS: For Senator John Kerry, all roads lead to Boston now as he prepares to accept his party's nomination for president. The Democratic National Convention begins Monday.

Howard Dean? Well, he will be there, too.

The former candidate is scheduled to speak in prime time on Tuesday. And Howard Dean is with us now from Burlington, Vermont. Hello to you. Thanks for being with us, once again.

HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: Thanks. Good morning, Heidi.

COLLINS: Let me ask you, you know, we are four days away, as we have just said, from the Democratic National Convention. What is your party's message?

DEAN: Our message is to have a stronger America: an America where we believe the president when he sends our troops abroad; an America where we have more jobs, not fewer jobs; an America where we can join all the other industrial nations in the world and have some kind of health insurance guaranteed for all our citizens.

Every other country in the world has that -- in the industrial world. There's no reason we can't.

It's a totally different kind of America than the America of George Bush. And I think this is an America that most Americans would be happy to have it back again.

COLLINS: But one step back -- do Americans know that that is the message of this party?

DEAN: I think so. I think, you know, John's job -- John Kerry's job and John Edwards' job -- is to get that message out over the last -- over the next three-and-a-half months.

But the key, really, is that folks have already decided in this country that they ought to take a second look at whether George Bush should be re-elected or not. Now we have an opportunity, and now we have to take advantage of that opportunity to change the country.

COLLINS: All right. Well, I want to remind you about something that you said to the "Washington Post" just the other day. You actually said -- you know, many, many years ago Barry Goldwater had made a comment, saying that I'd rather be right than president.

But you say, no way. He doesn't know what he's talking about. I'd still rather be president. Your comment on that?

DEAN: Well, it's true. Obviously I'm disappointed I'm not the nominee, but we're going to change the country. And the way to change the country is to make sure that John Kerry wins, and I'm going to do everything I can to make sure that happens. COLLINS: But how is it going to feel for you next week when you're inside the FleetCenter and you are not up on that stage as the nominee for the party?

DEAN: I'm not a very reflective person. We have a job to do. You know this -- George Bush has hurt this country terribly. We have over 900 people dead in -- of our people dead in Iraq, never mind how many Iraqis are dead, for a reason that we still don't know.

According to the president, he keeps changing the reasons as more evidence comes to light, that he wasn't being truthful about why we went there in the first place.

And we have lost a million jobs. And many of the ones that are being replaced are being replaced with jobs that pay a lot less than the ones that were lost.

We have a half-trillion-dollar deficit every single year. We can't go on like that. We need balanced budgets in this country. We need a restrained spending. We need, in my view, a president who's going to lead us and not have his agenda that's out of sync with the agenda for the American people.

This president is the president for two percent of the American people: those at the very top. I'd like a president who's going to respond to the other 98 percent of us.

COLLINS: Let me turn the corner quickly here. Does it concern you at all about the latest story that's come out about Samuel Berger and these classified documents? Do you think there's any chance that this issue is going to cloud the convention?

DEAN: I doubt it very much.

You know, we don't know what the facts were about the missing documents. Sandy Berger seems to have a plausible explanation. I think the timing is, of course, always suspect.

How did this investigating go one for two months, and then it gets leaked the week of the Democratic National Convention?

So, I think that it's just more Washington stuff, as usual.

COLLINS: We appreciate your time this morning. Howard Dean, thanks so much.

DEAN: Thank you.

COLLINS: Have a good time next week.

DEAN: Thank you.

COLLINS: And CNN will have live coverage of the Democratic National Convention in Boston starting Monday, 7 a.m. Eastern time.

HEMMER: About 18 minutes past the hour now. First check with Fredricka Whitfield at the CNN Center -- a check of the other news.

Fred, good morning to you. How are you?

FREDRICKA WHITFIELD, CNN ANCHOR: Good morning to you, Bill. I'm doing good.

Well, we begin with a possible step toward peace in the Middle East this morning with officials from the U.S., Israel, and Egypt working to organize a peace conference.

At issue: an Israeli withdrawal from the Gaza strip and the advancement of an internationally backed peace plan. It's not clear where the conference would be held, but it's tentatively set for October.

A new Congressional report says the Army bungled the planning and management of a huge contract to provide food and services to troops in Iraq. The GAO investigation claims the problems led to cost disputes between the Pentagon and Vice President Dick Cheney's former company, Halliburton.

The company's staffing and accounting are also criticized. Separate investigations are looking into whether Halliburton overcharged the Army for fuel and meals.

In West Virginia, a poultry supplier for KFC restaurants has fired 11 of its workers. The dismissals at the Pilgrim's Pride plant come a day after an animal rights group released video of workers abusing chickens. KFC says it has temporarily suspended buying chickens from that plant.

And finally, barring a catastrophe, it looks like Lance Armstrong will win a record sixth straight Tour de France on Sunday. Armstrong all but polished off his rivals yesterday in a grueling mountain stage.

Armstrong said that before he arrived at the finish, some in the massive crowd that line the route spat on him. Most were supportive though. And his closest challenger is nearly four minutes now behind.

Bill, back to you.

HEMMER: I'm telling you, go, Lance, go.

WHITFIELD: No kidding.

HEMMER: You know who loves this story, Fredricka?

WHITFIELD: Who?

HEMMER: Jack Cafferty.

WHITFIELD: Oh, yes. I think we all love this story.

HEMMER: Yes, we do.

CAFFERTY: Absolutely, Fred. I'm with you. We all love this story a lot.

The military is coming up short in more ways than one -- serious stuff here. Operations in Iraq and Afghanistan are running $12.5 billion over budget, that's just for the rest of this fiscal year, according to the general accounting office.

The "Washington Post" reports that in order to make up for the shortfall, the military is delaying the refurbishment of equipment, grounding Air Force and Navy pilots and canceling training exercises.

And on top of that, there aren't enough soldiers. The "New York Times" reports the Army is being forced to call up next year's recruits this year.

The question is: What should be done about the military's manpower and money shortages. The address is am@cnn.com.

I find it absolutely obscene that we're even sitting here doing a story like this three years after the attacks on this country. We're involved in something called the global war on terrorism.

Every piece of garbage pork legislation that these clowns in Washington want to get through and get funded, that stuff never gets touched. But the soldiers don't have enough equipment. The pilots are grounded. We don't have enough troops. We don't have enough money.

And if we don't win this thing against terrorism, you know, the rest of the stuff really doesn't matter this much. I mean, this is awful. This is awful that we're sitting here coming up on the third anniversary of the September 11th attacks and we're, you know, we're calling up kids that were suppose to be delayed until next year, to force them in this year.

We've got National Guard troops who were never supposed to be sent overseas deployed over there, catching bullets. I mean, it's just awful. This is just awful.

HEMMER: And pretty soon they're going to have to pony up more, very soon.

CAFFERTY: Oh, yes. $12.5 billion short for the rest of this fiscal year. That $65 billion appropriation, that's gone. And -- but we got money for all this other stuff.

You know, we can spend time debating every goofy constitutional amendment about gay marriage and all the rest. You know, where are the priorities?

HEMMER: A lot to think about.

CAFFERTY: Yes.

HEMMER: Thank you, Jack.

CAFFERTY: You're welcome. COLLINS: We'll go ahead and check the weather now. Chad Myers is standing by at the CNN Center with the very latest on all of that.

Good morning to you, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Heidi.

(WEATHER REPORT)

MYERS: Heidi, back to you.

COLLINS: All right. Chad, thanks so much. We'll check in a little bit later on.

HEMMER: In a moment here, expect it to be a rough day for one of the most popular sites on the Internet. We'll mind your business in a moment to fill you in on that story right after this.

COLLINS: Also ahead: The pictures out of California are still dramatic. Look at that. Firefighters may be getting a break, though, as they battle those huge blazes.

HEMMER: Also: The final 9/11 report will make recommendations on how to make this country safer. Good thing because at least one security expert says the country is more vulnerable than ever -- his story in a moment on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Twenty-five minutes past the hour.

EBay investors could be in for a bit of a rough ride today. Carrie Lee is live at the Nasdaq for us today, in for Andy, "Minding Your Business."

And welcome to AMERICAN MORNING, Carrie. Good morning

CARRIE LEE, CNN FINANCIAL CORRESPONDENT: Thank you, Bill, and good morning to you.

Well, let me start with a quick recap on yesterday because we certainly saw a lot of late-day selling. The Dow ending lower by over 100 points, down 102 to be exact.

The Nasdaq falling off by over two percent, putting us at the lowest level of the year. The Nasdaq is now down 6.5 percent for 2004.

Some worries about chip stocks contributing to the losses yesterday. And this morning, futures for technology issues are looking weak, as well.

EBay contributing to the bearish sentiment. EBay stock this morning down 6.6 percent after reporting profits last night. Now, profits and sales for the recent second quarter did beat the Wall Street estimate, sales up 52 percent over last year's quarter. However, eBay is giving guidance for this current quarter as well as for 2004 that are not quite what Wall Street is expecting. So, eBay looking weak. Techs looking weak.

Across the board, we're expecting a pretty flat open for stocks.

That's a look at business news so far.

HEMMER: All right, Carrie, thanks for that. Check in a little later.

Carrie Lee at Nasdaq market site -- Heidi?

COLLINS: Still to come this morning: The 9/11 panel will release its final report later this morning. We'll have a live look at some of its recommendations.

Also ahead, some "Political Pop." If you listen to President Bush on the campaign trail, he's ready to give peace a chance.

We'll explain, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired July 22, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. Nearly three years after 9/11, a new videotape now out showing just how easily five of the hijackers went through airport security.
9/11 the focus across Washington today. The commission investigating the attacks now releasing its final report in just hours.

And the husband of the missing woman in Utah, was he caught in a lie about a major aspect of his life?

All ahead here on AMERICAN MORNING.

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

HEMMER: Good morning, everyone. Seven o'clock here in New York. Soledad resting today. That clock is ticking down, getting closer and closer to the big day, and we're watching it.

HEIDI COLLINS, CNN ANCHOR: We're watching.

HEMMER: Good morning, Heidi. How are you?

COLLINS: Good morning -- great.

HEMMER: We have a full show today. Let's get right to it.

Twenty-one months of work by the commission of 9/11 coming to an end today. The commission issues its final report in a few hours -- 575 pages in length.

And of course, more on the new videotape seen of those hijackers. That was released yesterday afternoon.

COLLINS: Unbelievable -- also, just four days away from the Democratic convention. We're going to talk to former presidential candidate Howard Dean about whether he thinks Democrats have come together with a clear message to voters.

HEMMER: Also, we were talking about this story yesterday. A bit later today, a former Coast Guard commander who worked with two presidents on homeland security -- he says America's ports, and cities and chemical plants are barely safer today than on 9/11. We'll find out why a bit later this hour. COLLINS: For now though, Jack is here. Good morning.

JACK CAFFERTY, CNN ANCHOR: Good morning.

We've got that new movie "Catwoman" opening tomorrow with Halle Berry. One of the critics called it kitty litter and said it is as sexy as a hairball. So, apparently "Anchorman" will have some competition for crummiest film of the summer. That's not what we're talking about this morning, however.

Besides a shortage of money and soldiers, the military is in great shape in this country. We'll take a look at that in a few minutes.

HEMMER: Thank you, Jack.

Just two hours now before they crashed Flight 77 into the Pentagon, some of the 9/11 hijackers can be seen on a surveillance videotape calmly being checked and then rechecked by airport security.

(BEGIN VIDEOTAPE)

HEMMER (voice-over): It looks like a routine day at airport security, but this was anything but that. Take in the morning of September 11th, 2001, the video surveillance tape shows all five hijackers passing through the metal screening detectors at Dulles Airport.

The grainy images make individual faces difficult to identify, but you can clearly see an airport security officer passing his wand over one of the men. They dress normal. They do not stand out.

Four of the five hijackers bound for the American Airlines plane that would crash into the Pentagon were pulled aside for additional screening -- this after apparently setting off the metal detectors.

There is no evidence screeners questioned them about utility knives, legal at the time and thought to be in their personal luggage. The only hijacker, incidentally, who did not require additional screening was the man believed to have been the pilot after Flight 77 was hijacked -- Hani Hanjour.

The Associated Press obtained a copy of the video from a law firm which represents survivor families. They are suing both the airlines and the security firms.

(END VIDEOTAPE)

HEMMER (on camera): And again, a few hours from now, 11:30 a.m. Eastern time, the commission investigating the 9/11 attacks unveils its final report. That happens today.

Here is some of what we know. The report, almost 600 pages long, 1,500 footnotes, is expected to outline 10 operational opportunities missed by U.S. officials to detect or unravel the plot of 9/11. It will recommend the creation of a cabinet-level intelligence chief along with major changes in both the structure and the culture of the FBI.

In addition to this, a source telling CNN, that report concludes the main reason the U.S. was unprepared for the attacks was because intelligence responsibilities were spread too widely across the government. Kansas Senator Pat Roberts, chairman of the Intelligence Committee, has been briefed on the findings and the recommendations. He is our guest first up this morning.

Senator, good morning to you.

SEN. PAT ROBERTS (R-KS), INTELLIGENCE COMMITTEE: Good morning.

HEMMER: I want to go back to the surveillance videotape from yesterday. Based on the findings of the 9/11 Commission, how did what we see right now happen on 9/11?

ROBERTS: Well, we weren't prepared. The commission, I think, does a good job. It doesn't blame either president; it said mistakes were made. And it listed four failures: a failure of imagination, a failure of capability, a failure to really appreciate terrorism as a real threat -- I think that's the one that certainly pertains to your videotape -- and then also a failure of really not putting terrorism as a priority with a cold war mentality.

But the most important thing about this report: It doesn't look in the rearview mirror and point fingers of blame. It gets on beyond that and makes recommendations.

We just finished, as you know, a 511-page report on the Intelligence Committee, and we made conclusions that beg for reform. These are the reforms.

These are going to shake up Washington. This is a sharp poke in the ribs to Congress to get our act together and also the executive. I think it's a good report.

HEMMER: Also in that report it's recommending the House and the Senate get together on an Intelligence Committee, create one committee as opposed to two separate. Are you opposed to that?

ROBERTS: Well, basically, they recommended two choices: either have a House and Senate committee that has real clout, or put one together. So, we'll have to determine that.

We're going to have this 9/11 Commission come to the committee in September and give their full report. And by that time, we'll be able to check all of the details. We already started hearings yesterday on lessons learned and what we do in regards to the reform of intelligence.

But I will tell you that this report is going to cause a little concern up here in terms of people who really care about turf, and it also is going to call for major change in the intelligence community. So, this isn't tinkering around; this is a major reform after a major report by the Intelligence Committee. HEMMER: Well, you just stepped right into the next area, regarding turf and turf battles in Washington. Is it even logical to think that lawmakers in both chambers of Congress will tear down the walls of division between them and come together on a committee like this?

ROBERTS: Well, let me just give you an example. Tom Ridge at the Homeland Security Agency has appeared before 80 different committees in the Congress. That's ridiculous.

I had a bill two or three years ago to solve that. It got nowhere. I won't say that it is probable, but it is definitely possible. This is a work in progress. And as I've indicated with the 9/11 Commission, it has such bipartisan support, if we're going to get this job done, this is a real catalyst to get that job done. And on the Intelligence Committee, we're ready to accept that challenge.

HEMMER: All right. In that report, you mentioned your previous answer about Congress being fingered in this, as well. Also, recommendations talking about a national counter-terrorism center, a national intelligence director. All of this would have to pass through the walls of Capitol Hill.

Is this a good idea, or is it just more bureaucracy?

ROBERTS: Well, now that's -- you know, that's a good question. On the national intelligence director, there are several members that have bills to do that. We've just had a hearing on that yesterday in the Intelligence Committee.

In regards to a national counter-terrorism center, that's -- basically, we ought to be able to do that because that would be an expansion of what we call the Threat Information Center and the Homeland Security Agency. They call that TTIC.

But basically, it says all intelligence would be funneled through this center so that everybody would know what's going on, and the analysts would have a better product, and our first responders in all the communities around the country would know what's going on.

I think these are doable things. But as I say, this is sort of a sharp elbow in the side of the Congress to say, let's get our act together. And the Intelligence Committee stands ready to do that.

HEMMER: Senator, the reality is, it's July 22nd. It's an election year. We're diving thick into it on Monday morning in Boston with the Democrats meeting there.

Can you even say today whether or not these laws will be passed before this election, or is it safer to say 2005 is a much greater target?

ROBERTS: Oh, I think 2005, I think, is the recommendation of the 9/11 Commission. And it's also the recommendation that Senator Rockefeller and I have agreed after we hold these wise men and women hearings, have the 9/11 Commission in. We're in the midst of a very volatile and very tough campaign. A lot of -- you know, politics is not a bean bag, but there are a lot of hand grenades been, you know, tossed around.

So, I think we ought to educate ourselves, learn the details of this report. And I would imagine that the major action would take place after the election. And that's probably proper.

HEMMER: Senator, thanks. Pat Roberts, Republican from Kansas. Thank you for your time this morning.

ROBERTS: Thank you, sir.

HEMMER: Sure.

That 9/11 report due out later today 11:30 a.m. Eastern time. Complete live coverage when it happens here on CNN -- Heidi?

COLLINS: New video this morning shows seven foreign hostages being held in Iraq. Only six of the hostages appeared in an earlier video, which aired on Wednesday. It comes as new violence erupts in Ramadi and Baghdad.

Michael Holmes is live for us this morning in Baghdad with the very latest.

Michael, hello.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Hello to you, Heidi, and good morning.

That's right. Diplomats here in Baghdad are scurrying around trying to secure the release of those hostages. As you pointed out, yesterday everyone thought there were six. There are now seven, it would appear, from this video: three Indians, three Kenyans, and an Egyptian.

The gunmen holding them say they will start beheading one every 72 hours starting Saturday if the countries that these men are from, India, Kenya and Egypt do not withdraw all of their citizens from Iraq and the men's employer a Kuwaiti trucking company called KGL doesn't cease doing business in Iraq.

None of the nations involved, should point out, are members of coalition forces. And now, their diplomats are trying desperately, as I said, to win the release of these men.

The violence you mentioned -- there has been a couple of major incidents going on, the biggest in Ramadi, 70 miles west of us here in Baghdad. A U.S. Marine patrol came under some heavy fire.

It started with an ambush, a roadside bomb and then what the Marines call a barrage of small arms fire, RPGs. Marines say they killed 25 insurgents, wounded 17, captured 25 others. Fourteen U.S. servicemen wounded, none seriously. And here in Baghdad, really just up the street from where we are now, Haifa Street, some running street battles as a combined operation by Iraqi police, National Guard and U.S. forces tried to round people up. Those people shot back, and there was quite a bit of gunfire, really, today at the end.

Four Iraqis wounded, dozens were arrested, and some arms were seized -- Heidi?

COLLINS: All right. Michael Holmes, thanks for the very latest from there, appreciate that.

HEMMER: Well it's 11 minutes past the hour now.

Back in this country, there are questions again today about the husband of a missing pregnant jogger in Utah.

Twenty-seven year old Lori Hacking, reported missing by her husband on Monday morning. And although police say they are talking to Mark Hacking, they have not called him a suspect.

Lori's mother, Thelma Soares, and Mark's brother, Lance Hacking, both with us this morning from Salt Lake City.

It is an extremely tough time, I'm certain, for both your families. Good morning, and thank you for your time today.

Lance there was a report out today that says your brother checked into a hospital in Salt Lake. Is that the case?

LANCE HACKING, BROTHER-IN-LAW OF MISSING JOGGER: That is the case.

HEMMER: What is his condition, Lance?

HACKING: I have not seen Mark since arriving here in Utah, and I haven't talked to him directly. I know that he is receiving care.

HEMMER: The report says he is under great duress. Is that the report you have, as well?

HACKING: I have -- you know, again I would have to imagine that, you know, being separated from your wife like that would be -- that would be the case.

HEMMER: Detectives yesterday said publicly that he admitted that he lied about entrance into a medical school in North Carolina. Have you spoken to him about that? What more can you add?

HACKING: I think that the thing that caught both our families and friends off guard was that Mark, at some point -- if he felt the need to start some kind of a deception like this, and that he just wasn't willing to come to those who loved him, that we could work it out and figure out what was going on -- I think that's the part that's really left his heart broken and worried about Mark.

HEMMER: What was your response when you found out that was a lie?

HACKING: It was exactly that. It was the big question of, why did -- why did he not feel he could come and approach us who, you know, love him so much.

HEMMER: Ms. Soares, I know it's a tough time for you.

THELMA SOARES, MOTHER OF MISSING JOGGER: Yes.

HEMMER: We spoke yesterday right around this time. And again, I appreciate you coming back with us today. Have you talked to Mark about any of the information that came out yesterday?

SOARES: No, I have not.

HEMMER: Did you know, or at what point did you find out about the lie about medical school across the country in North Carolina?

SOARES: About 10 minutes before the press conference yesterday, when the police shared this information with us.

HEMMER: The families publicly have shown an awful lot of support. We have seen that publicly live here on CNN. How are you two doing together?

HACKING: We remain together. We pray together. We're doing everything together. Every meeting we have is together.

And we're continuing to put that effort and that love as we concentrate our, all of our efforts, in the search for Lori, in terms of sending out the search efforts, the voluntary programs.

That's really where we're trying to put our focus now is just continuing to look for Lori.

HEMMER: Ms. Soares...

SOARES: We continue to...

HEMMER: Go ahead. I'm sorry.

SOARES: We continue to love Mark and are concerned for him, but our focus is still on finding Lori. She's still missing. And right now we have to focus all our efforts.

And hopefully, the media will join with us and help us, as you have been so gracious in doing, in finding Lori. Thank you for your help in this.

HEMMER: Well, we appreciate your response with us this morning as well and taking time for us. I know the volunteer effort has been very impressive in Salt Lake. And our best to both you and your families.

SOARES: Yes.

HEMMER: Thanks. Lance Hacking, the brother of Mark Hacking, Thelma Soares, the wife of the missing jogger -- Heidi?

COLLINS: For Senator John Kerry, all roads lead to Boston now as he prepares to accept his party's nomination for president. The Democratic National Convention begins Monday.

Howard Dean? Well, he will be there, too.

The former candidate is scheduled to speak in prime time on Tuesday. And Howard Dean is with us now from Burlington, Vermont. Hello to you. Thanks for being with us, once again.

HOWARD DEAN (D), FMR. PRESIDENTIAL CANDIDATE: Thanks. Good morning, Heidi.

COLLINS: Let me ask you, you know, we are four days away, as we have just said, from the Democratic National Convention. What is your party's message?

DEAN: Our message is to have a stronger America: an America where we believe the president when he sends our troops abroad; an America where we have more jobs, not fewer jobs; an America where we can join all the other industrial nations in the world and have some kind of health insurance guaranteed for all our citizens.

Every other country in the world has that -- in the industrial world. There's no reason we can't.

It's a totally different kind of America than the America of George Bush. And I think this is an America that most Americans would be happy to have it back again.

COLLINS: But one step back -- do Americans know that that is the message of this party?

DEAN: I think so. I think, you know, John's job -- John Kerry's job and John Edwards' job -- is to get that message out over the last -- over the next three-and-a-half months.

But the key, really, is that folks have already decided in this country that they ought to take a second look at whether George Bush should be re-elected or not. Now we have an opportunity, and now we have to take advantage of that opportunity to change the country.

COLLINS: All right. Well, I want to remind you about something that you said to the "Washington Post" just the other day. You actually said -- you know, many, many years ago Barry Goldwater had made a comment, saying that I'd rather be right than president.

But you say, no way. He doesn't know what he's talking about. I'd still rather be president. Your comment on that?

DEAN: Well, it's true. Obviously I'm disappointed I'm not the nominee, but we're going to change the country. And the way to change the country is to make sure that John Kerry wins, and I'm going to do everything I can to make sure that happens. COLLINS: But how is it going to feel for you next week when you're inside the FleetCenter and you are not up on that stage as the nominee for the party?

DEAN: I'm not a very reflective person. We have a job to do. You know this -- George Bush has hurt this country terribly. We have over 900 people dead in -- of our people dead in Iraq, never mind how many Iraqis are dead, for a reason that we still don't know.

According to the president, he keeps changing the reasons as more evidence comes to light, that he wasn't being truthful about why we went there in the first place.

And we have lost a million jobs. And many of the ones that are being replaced are being replaced with jobs that pay a lot less than the ones that were lost.

We have a half-trillion-dollar deficit every single year. We can't go on like that. We need balanced budgets in this country. We need a restrained spending. We need, in my view, a president who's going to lead us and not have his agenda that's out of sync with the agenda for the American people.

This president is the president for two percent of the American people: those at the very top. I'd like a president who's going to respond to the other 98 percent of us.

COLLINS: Let me turn the corner quickly here. Does it concern you at all about the latest story that's come out about Samuel Berger and these classified documents? Do you think there's any chance that this issue is going to cloud the convention?

DEAN: I doubt it very much.

You know, we don't know what the facts were about the missing documents. Sandy Berger seems to have a plausible explanation. I think the timing is, of course, always suspect.

How did this investigating go one for two months, and then it gets leaked the week of the Democratic National Convention?

So, I think that it's just more Washington stuff, as usual.

COLLINS: We appreciate your time this morning. Howard Dean, thanks so much.

DEAN: Thank you.

COLLINS: Have a good time next week.

DEAN: Thank you.

COLLINS: And CNN will have live coverage of the Democratic National Convention in Boston starting Monday, 7 a.m. Eastern time.

HEMMER: About 18 minutes past the hour now. First check with Fredricka Whitfield at the CNN Center -- a check of the other news.

Fred, good morning to you. How are you?

FREDRICKA WHITFIELD, CNN ANCHOR: Good morning to you, Bill. I'm doing good.

Well, we begin with a possible step toward peace in the Middle East this morning with officials from the U.S., Israel, and Egypt working to organize a peace conference.

At issue: an Israeli withdrawal from the Gaza strip and the advancement of an internationally backed peace plan. It's not clear where the conference would be held, but it's tentatively set for October.

A new Congressional report says the Army bungled the planning and management of a huge contract to provide food and services to troops in Iraq. The GAO investigation claims the problems led to cost disputes between the Pentagon and Vice President Dick Cheney's former company, Halliburton.

The company's staffing and accounting are also criticized. Separate investigations are looking into whether Halliburton overcharged the Army for fuel and meals.

In West Virginia, a poultry supplier for KFC restaurants has fired 11 of its workers. The dismissals at the Pilgrim's Pride plant come a day after an animal rights group released video of workers abusing chickens. KFC says it has temporarily suspended buying chickens from that plant.

And finally, barring a catastrophe, it looks like Lance Armstrong will win a record sixth straight Tour de France on Sunday. Armstrong all but polished off his rivals yesterday in a grueling mountain stage.

Armstrong said that before he arrived at the finish, some in the massive crowd that line the route spat on him. Most were supportive though. And his closest challenger is nearly four minutes now behind.

Bill, back to you.

HEMMER: I'm telling you, go, Lance, go.

WHITFIELD: No kidding.

HEMMER: You know who loves this story, Fredricka?

WHITFIELD: Who?

HEMMER: Jack Cafferty.

WHITFIELD: Oh, yes. I think we all love this story.

HEMMER: Yes, we do.

CAFFERTY: Absolutely, Fred. I'm with you. We all love this story a lot.

The military is coming up short in more ways than one -- serious stuff here. Operations in Iraq and Afghanistan are running $12.5 billion over budget, that's just for the rest of this fiscal year, according to the general accounting office.

The "Washington Post" reports that in order to make up for the shortfall, the military is delaying the refurbishment of equipment, grounding Air Force and Navy pilots and canceling training exercises.

And on top of that, there aren't enough soldiers. The "New York Times" reports the Army is being forced to call up next year's recruits this year.

The question is: What should be done about the military's manpower and money shortages. The address is am@cnn.com.

I find it absolutely obscene that we're even sitting here doing a story like this three years after the attacks on this country. We're involved in something called the global war on terrorism.

Every piece of garbage pork legislation that these clowns in Washington want to get through and get funded, that stuff never gets touched. But the soldiers don't have enough equipment. The pilots are grounded. We don't have enough troops. We don't have enough money.

And if we don't win this thing against terrorism, you know, the rest of the stuff really doesn't matter this much. I mean, this is awful. This is awful that we're sitting here coming up on the third anniversary of the September 11th attacks and we're, you know, we're calling up kids that were suppose to be delayed until next year, to force them in this year.

We've got National Guard troops who were never supposed to be sent overseas deployed over there, catching bullets. I mean, it's just awful. This is just awful.

HEMMER: And pretty soon they're going to have to pony up more, very soon.

CAFFERTY: Oh, yes. $12.5 billion short for the rest of this fiscal year. That $65 billion appropriation, that's gone. And -- but we got money for all this other stuff.

You know, we can spend time debating every goofy constitutional amendment about gay marriage and all the rest. You know, where are the priorities?

HEMMER: A lot to think about.

CAFFERTY: Yes.

HEMMER: Thank you, Jack.

CAFFERTY: You're welcome. COLLINS: We'll go ahead and check the weather now. Chad Myers is standing by at the CNN Center with the very latest on all of that.

Good morning to you, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Heidi.

(WEATHER REPORT)

MYERS: Heidi, back to you.

COLLINS: All right. Chad, thanks so much. We'll check in a little bit later on.

HEMMER: In a moment here, expect it to be a rough day for one of the most popular sites on the Internet. We'll mind your business in a moment to fill you in on that story right after this.

COLLINS: Also ahead: The pictures out of California are still dramatic. Look at that. Firefighters may be getting a break, though, as they battle those huge blazes.

HEMMER: Also: The final 9/11 report will make recommendations on how to make this country safer. Good thing because at least one security expert says the country is more vulnerable than ever -- his story in a moment on AMERICAN MORNING.

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HEMMER: Twenty-five minutes past the hour.

EBay investors could be in for a bit of a rough ride today. Carrie Lee is live at the Nasdaq for us today, in for Andy, "Minding Your Business."

And welcome to AMERICAN MORNING, Carrie. Good morning

CARRIE LEE, CNN FINANCIAL CORRESPONDENT: Thank you, Bill, and good morning to you.

Well, let me start with a quick recap on yesterday because we certainly saw a lot of late-day selling. The Dow ending lower by over 100 points, down 102 to be exact.

The Nasdaq falling off by over two percent, putting us at the lowest level of the year. The Nasdaq is now down 6.5 percent for 2004.

Some worries about chip stocks contributing to the losses yesterday. And this morning, futures for technology issues are looking weak, as well.

EBay contributing to the bearish sentiment. EBay stock this morning down 6.6 percent after reporting profits last night. Now, profits and sales for the recent second quarter did beat the Wall Street estimate, sales up 52 percent over last year's quarter. However, eBay is giving guidance for this current quarter as well as for 2004 that are not quite what Wall Street is expecting. So, eBay looking weak. Techs looking weak.

Across the board, we're expecting a pretty flat open for stocks.

That's a look at business news so far.

HEMMER: All right, Carrie, thanks for that. Check in a little later.

Carrie Lee at Nasdaq market site -- Heidi?

COLLINS: Still to come this morning: The 9/11 panel will release its final report later this morning. We'll have a live look at some of its recommendations.

Also ahead, some "Political Pop." If you listen to President Bush on the campaign trail, he's ready to give peace a chance.

We'll explain, ahead on AMERICAN MORNING.

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