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Rep. Jim Turner Discusses Homeland Security; Bush Mulls 9/11 Commission Recommendations; Kidnapping As Terrorist Weapons; Sen. John Kerry Speaks In Norfolk, Virginia

Aired July 27, 2004 - 11:30   ET

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


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


DARYN KAGAN, CNN ANCHOR: Let's take a look at the stories now in the news. United Airlines says an object found aboard a Los Angeles to Sydney flight prompted strong enough security concerns that they ordered the airliner to return to Australia. A government official describes it as a note indicating a possible bomb threat. It was Flight 840, and its 264 passengers and crew will make the trip tomorrow.
Secretary of State Colin Powell is in Hungary today, the first stop of a tour that will whisk him to five other countries. Powell praised Hungary for its 350 troops who are aiding humanitarian work there and their steadfastness in keeping them in place. He says despite kidnappings and violence, now is not the time, as Powell says, to get weak in the knees.

In Washington, a public hearing is underway on whether video recorders should be placed in airliner cockpits. The National Transportation Safety Board is conducting this first-ever hearing. It says that capturing the crews' actions could not only answer critical questions in crash investigations, it could also serve as a teaching tool. Pilots are against that idea.

California Governor Arnold Schwarzenegger and legislative leaders have agreed on a state budget. This ends a 26-day standoff. Lawmakers are expected to approve the $103 billion packet later this week. The partisan bickering intensified when Republican Governor Schwarzenegger mocked Democrats as, quote, "girlie-men."

Keeping you informed, CNN, the most trusted name in news.

In Boston, a live picture there. The spotlight, of course, on politics. Countless eyes are also on security, as well. An example of that: four aircrafts have violated airspace restrictions since yesterday morning. While all have been deemed as accidental, it shows the extraordinary measures to protect the nation's first major political convention since the September 11th attacks.

Joining us to discuss security, Representative Jim Turner, ranking member of the House Select Committee on Homeland Security. Congressman, good morning.

REP. JIM TURNER (D), TEXAS: Good morning.

KAGAN: Thanks for being with us.

TURNER: Thank you. Good to be with you.

KAGAN: How would you rate the security there at the convention?

TURNER: I think the security is excellent. I have no doubt that this convention is very safe. In fact, frankly when I think about the threat that we're under from al Qaeda, I don't think it's any more likely that al Qaeda will strike this week than any other week between now and the end of the year. That's the timeframe that we all know that we've heard the general intelligence about. So, I feel very confident that both of our conventions will be safe.

KAGAN: Let's talk about that threat and the American public's concern about that. Any minute now, we do expect to hear from Senator Kerry from Norfolk talking about the terror threat, talking about the 9/11 Commission. Also, President Bush expected to make some moves on recommendations from the commission report.

Do you think the terror threat is the number one issue for most Americans in this election?

TURNER: I believe it is. I believe the American people are uneasy about the leadership that we've had. We're told on the one hand that al Qaeda is threatening to attack America, and on the other hand the president says we're safer. It can't be both ways.

Democrats are going back to Washington on August the 10th. We're going to get to work. We're going to look carefully at the 9/11 Commission reports. And many of the recommendations that are in that report have been advocated by John Kerry and Democrats for a long time now.

Our Homeland Security Committee Report that the Democrats put out back last May called for closing many of these security gaps that are mentioned in the report. The recommendations for a National Intelligence Director is the subject of a bill that Jane Harman and many of our Democrats have sponsored. We're ready to go to work. And I think if we get back to Washington on the 10th, we can move this forward.

We need to treat this with the urgency that we did after 9/11. There's no reason not to move forward very quickly. In fact, many of these security gaps should have been closed. We're three years from 9/11. We've yet to capture or kill Osama bin Laden. They're still planning to attack America. It's time to go to work. And I think that the Congress and the Democrats in the Congress are ready to go.

KAGAN: So, how do you make the case that the Democrats would do a better job than the Republicans? Or that Senator Kerry would do a better job than President Bush in protecting this country?

TURNER: I think John Kerry's laid out a plan to make America safer. He said we need to go after the terrorists more aggressively. He said we need to close the security gaps that we all know still exist and should have been closed after 9/11. And finally, he's talking about preventing the rise of future terrorists. And you haven't heard much discussion about that, but we've got to start supporting the voices of moderation in the Muslim world. We've got to develop economic partnerships. We've got to assist them in providing alternatives to those madrassas who are teaching hate to the children of the Muslim world.

This is a broad effort that must be made. It must be made with our international partners and with the voices of moderation in the Muslim world.

KAGAN: And it's a decision that Americans across the land will make less than 100 -- I believe it's 99 days from right now.

TURNER: That's right.

KAGAN: Congressman Turner, thank you so much for your time.

TURNER: Thank you.

KAGAN: Enjoy the rest of the convention. Thank you.

TURNER: Thank you.

Well, President Bush and his top advisors are heeding calls to give immediate attention to the 9/11 report, as I mentioned, and the recommendations put forward by the bipartisan commission.

Yesterday Mr. Bush conferred with top advisors via teleconference on what to do first. Our White House correspondent Suzanne Malveaux is in Crawford, Texas, near the president's ranch. Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn.

President Bush and, of course, the Bush administration is eager to show that the president is doing everything he can to protect the American people. A White House spokeswoman yesterday saying that the president could sign off on some of these recommendations from the 9/11 Commission within days.

Now, already some Democrats are crying foul, saying that the president is trying to upstage their convention, their event. A White House spokeswoman saying, no, the president is going to do what is right, what is good for the American people. But there is no doubt that the Bush campaign is clearly aware of the political benefit.

(BEGIN VIDEOTAPE)

(voice-over): President Bush laying low at his Crawford ranch, but on the fast track to making possible intelligence reforms. Monday morning, through a secure video teleconference call, he led his first task force meeting on the 9/11 Commission's recommendations.

Officials at the highest level of government mobilized in the Situation Room at the White House and on the line to figure out how to overhaul the country's intelligence system. In attendance, about a dozen cabinet-level officials, including: the vice president; secretaries of Homeland Security and the Defense Department; the acting director of the CIA and the head of the FBI; top officials from Justice, State, and the National Security Council.

Cheney, campaigning in Washington State, elaborated on the meeting.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: We're at the beginning here of what will be and should be a great debate as we look at how we can improve both the executive branch and legislative branch's ability to function in this area.

MALVEAUX: National Security Advisor Condoleezza Rice joined Mr. Bush at his ranch to discuss enacting recommendations that can be implemented immediately by executive order.

A White House spokeswoman said while the task force did not make any decisions on which recommendations will be implemented, that the president urged the group to act quickly to come up with a rapid review of the 9/11 report.

One source privy to the deliberations said the president is warming up to one controversial proposal: a National Director of Intelligence. That recommendation is being pushed by the chairs of the 9/11 Commission, both parties in Congress and Bush critics, but was initially rejected by the secretary of Homeland Security and the acting director of the CIA.

(END VIDEOTAPE)

(on camera): Now, pressure on the Bush administration to act quickly is intensifying. As you know, Senator John Kerry says that if he was elected president, he would enact at least 16 of those recommendations right away.

We're also told by his aides that today he will call for the 9/11 Commission's term to be extended by 18 months so that they can go ahead and put more pressure on this administration and Congress to move forward on those intelligence reforms -- Daryn?

KAGAN: Suzanne, let's talk a different type of safety measure here: personal safety. President Bush, I understand, took a spill off his bicycle.

MALVEAUX: Yes. That's right. Yesterday, as a matter of fact, he was bicycling with an AP Reporter Scott Lindlaw on his Crawford ranch. He was going rather fast, we're told, down a hill, and basically went over the handlebars. Took a spill.

We're also told, however, that he brushed himself off. It was just a cut, some bruises and scrapes. Got right back up. Was a little bit shaken, we are told, but we are told that he is OK.

KAGAN: Not getting back on the horse, getting back on the bike is what he did. Suzanne, thank you for that report from Crawford, Texas.

While we are standing by, we expect Senator John Kerry -- there is Representative Jane Harman of southern California. She is in Norfolk, Virginia, along with Senator Kerry. We expect to hear him speak any minute. When he does, you'll hear that live here on CNN.

Also ahead, a lot of news, including downloading music on the go. The Apple iTunes revolution moves into a new phase. The explanation ahead, and a check of business headlines from the New York Stock Exchange.

(COMMERCIAL BREAK)

KAGAN: Let's check on the day on Wall Street. Mary Snow doing that for us. Hi, Mary.

MARY SNOW, CNN FINANCIAL NEWS: Hi there, Daryn. And for a change, stocks are solidly higher this morning. Investors seem to be brushing aside lingering worries about corporate profits, instead shifting that focus to some strong earnings reports from companies like Verizon.

Also some upbeat economic news: Consumer confidence this month rose to the highest level in two years. New home sales also remained healthy in June. The Dow, right now, up 58 points. The Nasdaq Composite is gaining two-thirds of 1%. Shares of Kmart are rallying more than $5. This, after an analyst said that real estate holdings owned by Kmart could be worth up to $150 a share.

And Motorola will soon bring music to your ears, literally. The world's second largest mobile phone maker has signed a deal to install a slimmed down version of Apple's iTunes music service on its new cell phones. After buying music online for 99 cents a song, iTunes users will then be able to transfer a limited number of songs from their computers to Motorola handsets.

Motorola has said it will begin shipping the iTunes-capable phones in the first half of next year. And for Apple, the deal opens the door to a huge new market of cell phone users. It's already sold more than 100,000 tracks at its iTunes online music store.

And that is the very latest from Wall Street. Daryn, back to you.

KAGAN: All right, Mary, thank you for that. We'll download some more information from you a little bit later in the morning.

Meanwhile, let's take a look at other stories making news coast to coast. Oregon is battling its largest wildfire of the summer. Fire crews have been unable to contain the 2,500 acre blaze on the north side of the Warm Springs Indian Reservation. Twenty-one homes are in potential danger, and the residents have been urged to leave.

In Canton, Massachusetts, a 14-year-old boy has successfully divorced his father in court proceedings. The father had murdered the boy's mother but tried to remain involved in his son's inheritance. The boy's groundbreaking victory came yesterday when his father agreed to a last-minute settlement.

Florida's Wildlife Commission has exonerated the 24-year-old game officer who shot and killed an escaped pet tiger. The review concluded that Jesse Curtis Lee used sound judgment, despite the claims of Bobo the tiger's owner, a movie actor who played Tarzan decades ago. The officer also pleaded for people to stop calling him, quote, "an animal murderer."

Once again, we're standing by. Senator John Kerry is going to be speaking any minute in Norfolk, Virginia. He is making his way to the Democratic National Convention in Boston.

And this is what we're working on for next hour.

ANNOUNCER: The stories CNN is following today, July 27th.

Faith in the workplace.

UNIDENTIFIED FEMALE: You've hit the stained-glass ceiling.

ANNOUNCER: Should religion be practiced on company time? At 11:00, CNN takes an in-depth look.

Then at noon, CNN is live from the Democratic National Convention in Boston. Hip-hop mogul Russell Simmons joins Wolf to discuss his efforts, not only to register young voters, but to get them to the polls in November.

Stay with CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: We are watching a live picture in Norfolk, Virginia. Senator John Kerry, just about on the left-center -- the right-center part of your screen. When he begins to speak from Virginia, we will bring you some of those comments live, as he makes his way to the Democratic National Convention in Boston.

Meanwhile, let's check our situation report out of Iraq. In Baghdad, it's being called one of the largest weapons finds ever. An overnight raid of suspected safe houses yields a collection of guns, missiles, rocket launchers, and explosives. Iraqi police and U.S. forces have been watching the house for about a month now.

Also in Baghdad, an Iraqi civilian is dead and 14 foreign soldiers are hurt after insurgents launched a mortar attack. Rebels fired the rounds near the green zone, housing the new Iraqi government and the U.S. embassy. Officials had no information on the nationalities of the 14 wounded troops.

And a former Egyptian hostage is back at work at the Egyptian embassy in Baghdad a day after his release. The freed Egyptian diplomat says that his Iraqi captors first threatened to kill him, but they reversed course and they eventually treated him well, he says.

The systematic use of kidnapping as a terrorist weapon -- our Matthew Chance looks at this disturbing new trend.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): This is the nightmare of every foreigner working in Iraq. Truck drivers, security guards, even a diplomat have been taken hostage, but everyone linked with the coalition, the reconstruction efforts, or the new Iraqi government seems a target.

SABBAH KADUM, INTERIOR MINISTRY: Really, the intention of the terrorists is to destroy this government. The very fact that has been recognized by a number of countries in the world makes these groups more desperate, because now what are they? Do they really have a political program? And if they do, why don't they unmask their faces and show us this program?

CHANCE: But the holding of hostages under the threat of execution is proving an emotionally charged change of tactics, pressuring companies, even countries to leave Iraq in its chaos. The biggest success of the hostage-takers is the early withdrawal of Philippine forces from Iraq, after one of their nationals, a truck driver, was threatened with execution.

But kidnapping is more than just a problem for foreigners. These Iraqi women are mourning the death of Achmed Abdullah (ph), a Baghdad goldsmith kidnapped and killed last week. The scrap of card is a ransom demand for $50,000. It was never paid. Across Iraq, ordinary families perceived to have money live in fear of abduction.

Iraqi officials believe organized criminals motivated by cash are involved in the taking of foreign hostages, as well.

KADUM: It's the same operation where perhaps they can sell these at a higher price, these organized crime, for a -- at a higher price for some of these terrorism groups that are well financed, whether the groups are originated from Afghanistan or they're groups that used to support the previous regimes who are also well funded.

CHANCE: So, you believe it may be criminal gangs taking the hostages and then selling them up the chain?

KADUM: I think there is evidence of that.

CHANCE: A chain reaction, raising the stakes for many living and working here.

(on camera): Talks to secure the release of the hostages are secretive, often highly dangerous, as well, involving intermediaries, diplomats, even Muslim clerics here. We have learned that teams of police from the U.S. and Britain are in Baghdad and advising the Iraqi government on how to proceed and how to bring to an end this particularly ugly phase of the insurgency.

Matthew Chance, CNN, Baghdad.

(END VIDEOTAPE) KAGAN: And you can always keep up with what's going on in Iraq by heading to our Web site. We have the latest developments, along with a special report. It's called "The Struggle For Iraq." It is all on cnn.com.

And we -- well, we're getting close. Senator Kerry at the podium. As these things go, there are probably a lot of thank yous for him to get through, so we'll take a break while the senator gets through those. And we'll hear his comments just ahead.

(COMMERCIAL BREAK)

KAGAN: And that is Senator John Kerry getting warmed up in Norfolk, Virginia. He is making a campaign swing which started yesterday in Cape Canaveral, Florida, making his way eventually up to Boston and the Democratic National Convention.

Let's listen in to Senator Kerry.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: ... and we're going to tell America what we're going to do. Ready? One, two, three: We can -- all right! We hear you in the garage! We can do better. We can do better, and that's what brings us here today from Norfolk, going backwards to Columbus, Ohio, to Sioux City, Iowa, to Aurora, Colorado, where we began this journey a few days ago.

We are traveling across the country, highlighting in each place the freedom trail of America, the great strength of our nation. We've celebrated yesterday down in Cape Canaveral our technology. I was there with John Glenn and Bill Nelson, both of whom have gone into space, thanks to the great technology of the United States of America. That represents the future.

We were in Sioux City where we talked with people about the strength of Americans. The Lewis and Clark expedition. The ability to push the frontiers and to explore the future.

Columbus, Ohio, where we talked about jobs and the industrial base of our nation, and the work ethic of America and the way we make ourselves strong.

And here today, we are here to talk today to say thank you to those who serve in our military and to provide for the continued strength of the United States of America.

(APPLAUSE)

Military used wisely, yes, ma'am. That is my pledge.

But before I talk to you about some of those issues, I'd like to say a few words about the 9/11 Commission report that was just released.

The commission has done an extraordinary job, important for America, of issuing a very clear set of recommendations to protect us from terrorism and to make the United States safe. Now that the 9/11 Commission has done its job, we need to do our job.

(APPLAUSE)

We understand the threat. We have a blueprint for action. We have the strength as a nation to do what has to be done. The only thing we don't have is time. We need to do it now.

(APPLAUSE)

Leadership -- leadership requires that we act now.

Jane Harman talked a moment ago about the things we could have done. This is the reason that we created the 9/11 Commission in the first place. And that is why, when the commission released their report, I called for immediate action, not talk, not vague promises, not excuses.

Back-pedaling and going slow is something that America can't afford. It will take real bipartisan leadership and real action to protect this country of ours.

(APPLAUSE)

You can't treat the commission's report as something that you hope will go away. You can't treat the commission's report as something that, sort of, represents a threat to America that will go away. Because this threat won't go away, and the recommendations of the commission make sense and they should be implemented now.

(APPLAUSE)

We need to not only recommend -- put in place those recommendations, we need to do everything possible that we know we can do in order to make America safer.

That is why I support the 9/11 Commission's commitment to continue to push for progress and to make sure that its recommendations are implemented without delay.

Ladies and gentlemen, if I were president today, if I had been president last week, I would have immediately said to the commission, "Yes, we're going to implement those recommendations, and we want you to stay on the job for at least another 18 months in order to help make sure we do the job."

(APPLAUSE)

KERRY: Here's what I believe. I believe that, beginning this December, this commission should issue a status report every six months, and they should address the following questions: First, are we doing enough fast enough to strengthen our homeland security? Second, are we reorganizing our intelligence agencies to meet the terrorist threat? Third, are we building a true global alliance to fight the terrorists and isolate their extremist ideology?

(APPLAUSE) Fourth, are we leading and uniting the world so that we isolate our enemies, not ourselves?

(APPLAUSE)

And fifth and finally, they should answer the question, and help Americans answer the question: Are we doing everything we can do to make America as safe as it can be?

Those are the questions I would put on the table. That's the leadership that America needs.

The president has the authority right now, today, to implement many of the commission's recommendations by executive order. And Congress needs to do its part where legislation and/or funding are needed. We cannot let politics get in the way of protecting the American people.

(APPLAUSE)

KERRY: This -- this isn't about partisanship. It's about patriotism. It's not about what was done or wasn't done in the past. It's not about pointing fingers, but it is about winning a war upon which our future depends.

So, I hope the president will now take the necessary steps, implement the commission's recommendations immediately. These are common-sense ideas from a bipartisan commission, and I think we have a responsibility to act and to act now. And I'm convinced that you believe that, too.

That's how we make America safer.

(APPLAUSE)

We've come here, as I said, to Norfolk to honor people who serve their country. Skip Parker and I will never forget, even this day -- we were the guys who what we call citizen soldiers. We'd go in for a number of years, and then we go back to life in America.

But you know what? You may take the uniform off, but you never take it out of your heart or your gut. You never take what it means to stand watch or to fight in battle or serve your country.

And so, Skip and I and the admiral and others who have seen combat come here not because we're veterans, but because we have a sense of what is at stake, because those lessons we learned do mean something, and they are valuable and they're worth passing on to others.

And the first and most important lesson of all is that the great United States of America, our beloved country, never goes to war because it wants to, we go to war because we have to. That's the standard of our country.

(APPLAUSE) 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 27, 2004 - 11:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Let's take a look at the stories now in the news. United Airlines says an object found aboard a Los Angeles to Sydney flight prompted strong enough security concerns that they ordered the airliner to return to Australia. A government official describes it as a note indicating a possible bomb threat. It was Flight 840, and its 264 passengers and crew will make the trip tomorrow.
Secretary of State Colin Powell is in Hungary today, the first stop of a tour that will whisk him to five other countries. Powell praised Hungary for its 350 troops who are aiding humanitarian work there and their steadfastness in keeping them in place. He says despite kidnappings and violence, now is not the time, as Powell says, to get weak in the knees.

In Washington, a public hearing is underway on whether video recorders should be placed in airliner cockpits. The National Transportation Safety Board is conducting this first-ever hearing. It says that capturing the crews' actions could not only answer critical questions in crash investigations, it could also serve as a teaching tool. Pilots are against that idea.

California Governor Arnold Schwarzenegger and legislative leaders have agreed on a state budget. This ends a 26-day standoff. Lawmakers are expected to approve the $103 billion packet later this week. The partisan bickering intensified when Republican Governor Schwarzenegger mocked Democrats as, quote, "girlie-men."

Keeping you informed, CNN, the most trusted name in news.

In Boston, a live picture there. The spotlight, of course, on politics. Countless eyes are also on security, as well. An example of that: four aircrafts have violated airspace restrictions since yesterday morning. While all have been deemed as accidental, it shows the extraordinary measures to protect the nation's first major political convention since the September 11th attacks.

Joining us to discuss security, Representative Jim Turner, ranking member of the House Select Committee on Homeland Security. Congressman, good morning.

REP. JIM TURNER (D), TEXAS: Good morning.

KAGAN: Thanks for being with us.

TURNER: Thank you. Good to be with you.

KAGAN: How would you rate the security there at the convention?

TURNER: I think the security is excellent. I have no doubt that this convention is very safe. In fact, frankly when I think about the threat that we're under from al Qaeda, I don't think it's any more likely that al Qaeda will strike this week than any other week between now and the end of the year. That's the timeframe that we all know that we've heard the general intelligence about. So, I feel very confident that both of our conventions will be safe.

KAGAN: Let's talk about that threat and the American public's concern about that. Any minute now, we do expect to hear from Senator Kerry from Norfolk talking about the terror threat, talking about the 9/11 Commission. Also, President Bush expected to make some moves on recommendations from the commission report.

Do you think the terror threat is the number one issue for most Americans in this election?

TURNER: I believe it is. I believe the American people are uneasy about the leadership that we've had. We're told on the one hand that al Qaeda is threatening to attack America, and on the other hand the president says we're safer. It can't be both ways.

Democrats are going back to Washington on August the 10th. We're going to get to work. We're going to look carefully at the 9/11 Commission reports. And many of the recommendations that are in that report have been advocated by John Kerry and Democrats for a long time now.

Our Homeland Security Committee Report that the Democrats put out back last May called for closing many of these security gaps that are mentioned in the report. The recommendations for a National Intelligence Director is the subject of a bill that Jane Harman and many of our Democrats have sponsored. We're ready to go to work. And I think if we get back to Washington on the 10th, we can move this forward.

We need to treat this with the urgency that we did after 9/11. There's no reason not to move forward very quickly. In fact, many of these security gaps should have been closed. We're three years from 9/11. We've yet to capture or kill Osama bin Laden. They're still planning to attack America. It's time to go to work. And I think that the Congress and the Democrats in the Congress are ready to go.

KAGAN: So, how do you make the case that the Democrats would do a better job than the Republicans? Or that Senator Kerry would do a better job than President Bush in protecting this country?

TURNER: I think John Kerry's laid out a plan to make America safer. He said we need to go after the terrorists more aggressively. He said we need to close the security gaps that we all know still exist and should have been closed after 9/11. And finally, he's talking about preventing the rise of future terrorists. And you haven't heard much discussion about that, but we've got to start supporting the voices of moderation in the Muslim world. We've got to develop economic partnerships. We've got to assist them in providing alternatives to those madrassas who are teaching hate to the children of the Muslim world.

This is a broad effort that must be made. It must be made with our international partners and with the voices of moderation in the Muslim world.

KAGAN: And it's a decision that Americans across the land will make less than 100 -- I believe it's 99 days from right now.

TURNER: That's right.

KAGAN: Congressman Turner, thank you so much for your time.

TURNER: Thank you.

KAGAN: Enjoy the rest of the convention. Thank you.

TURNER: Thank you.

Well, President Bush and his top advisors are heeding calls to give immediate attention to the 9/11 report, as I mentioned, and the recommendations put forward by the bipartisan commission.

Yesterday Mr. Bush conferred with top advisors via teleconference on what to do first. Our White House correspondent Suzanne Malveaux is in Crawford, Texas, near the president's ranch. Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Daryn.

President Bush and, of course, the Bush administration is eager to show that the president is doing everything he can to protect the American people. A White House spokeswoman yesterday saying that the president could sign off on some of these recommendations from the 9/11 Commission within days.

Now, already some Democrats are crying foul, saying that the president is trying to upstage their convention, their event. A White House spokeswoman saying, no, the president is going to do what is right, what is good for the American people. But there is no doubt that the Bush campaign is clearly aware of the political benefit.

(BEGIN VIDEOTAPE)

(voice-over): President Bush laying low at his Crawford ranch, but on the fast track to making possible intelligence reforms. Monday morning, through a secure video teleconference call, he led his first task force meeting on the 9/11 Commission's recommendations.

Officials at the highest level of government mobilized in the Situation Room at the White House and on the line to figure out how to overhaul the country's intelligence system. In attendance, about a dozen cabinet-level officials, including: the vice president; secretaries of Homeland Security and the Defense Department; the acting director of the CIA and the head of the FBI; top officials from Justice, State, and the National Security Council.

Cheney, campaigning in Washington State, elaborated on the meeting.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: We're at the beginning here of what will be and should be a great debate as we look at how we can improve both the executive branch and legislative branch's ability to function in this area.

MALVEAUX: National Security Advisor Condoleezza Rice joined Mr. Bush at his ranch to discuss enacting recommendations that can be implemented immediately by executive order.

A White House spokeswoman said while the task force did not make any decisions on which recommendations will be implemented, that the president urged the group to act quickly to come up with a rapid review of the 9/11 report.

One source privy to the deliberations said the president is warming up to one controversial proposal: a National Director of Intelligence. That recommendation is being pushed by the chairs of the 9/11 Commission, both parties in Congress and Bush critics, but was initially rejected by the secretary of Homeland Security and the acting director of the CIA.

(END VIDEOTAPE)

(on camera): Now, pressure on the Bush administration to act quickly is intensifying. As you know, Senator John Kerry says that if he was elected president, he would enact at least 16 of those recommendations right away.

We're also told by his aides that today he will call for the 9/11 Commission's term to be extended by 18 months so that they can go ahead and put more pressure on this administration and Congress to move forward on those intelligence reforms -- Daryn?

KAGAN: Suzanne, let's talk a different type of safety measure here: personal safety. President Bush, I understand, took a spill off his bicycle.

MALVEAUX: Yes. That's right. Yesterday, as a matter of fact, he was bicycling with an AP Reporter Scott Lindlaw on his Crawford ranch. He was going rather fast, we're told, down a hill, and basically went over the handlebars. Took a spill.

We're also told, however, that he brushed himself off. It was just a cut, some bruises and scrapes. Got right back up. Was a little bit shaken, we are told, but we are told that he is OK.

KAGAN: Not getting back on the horse, getting back on the bike is what he did. Suzanne, thank you for that report from Crawford, Texas.

While we are standing by, we expect Senator John Kerry -- there is Representative Jane Harman of southern California. She is in Norfolk, Virginia, along with Senator Kerry. We expect to hear him speak any minute. When he does, you'll hear that live here on CNN.

Also ahead, a lot of news, including downloading music on the go. The Apple iTunes revolution moves into a new phase. The explanation ahead, and a check of business headlines from the New York Stock Exchange.

(COMMERCIAL BREAK)

KAGAN: Let's check on the day on Wall Street. Mary Snow doing that for us. Hi, Mary.

MARY SNOW, CNN FINANCIAL NEWS: Hi there, Daryn. And for a change, stocks are solidly higher this morning. Investors seem to be brushing aside lingering worries about corporate profits, instead shifting that focus to some strong earnings reports from companies like Verizon.

Also some upbeat economic news: Consumer confidence this month rose to the highest level in two years. New home sales also remained healthy in June. The Dow, right now, up 58 points. The Nasdaq Composite is gaining two-thirds of 1%. Shares of Kmart are rallying more than $5. This, after an analyst said that real estate holdings owned by Kmart could be worth up to $150 a share.

And Motorola will soon bring music to your ears, literally. The world's second largest mobile phone maker has signed a deal to install a slimmed down version of Apple's iTunes music service on its new cell phones. After buying music online for 99 cents a song, iTunes users will then be able to transfer a limited number of songs from their computers to Motorola handsets.

Motorola has said it will begin shipping the iTunes-capable phones in the first half of next year. And for Apple, the deal opens the door to a huge new market of cell phone users. It's already sold more than 100,000 tracks at its iTunes online music store.

And that is the very latest from Wall Street. Daryn, back to you.

KAGAN: All right, Mary, thank you for that. We'll download some more information from you a little bit later in the morning.

Meanwhile, let's take a look at other stories making news coast to coast. Oregon is battling its largest wildfire of the summer. Fire crews have been unable to contain the 2,500 acre blaze on the north side of the Warm Springs Indian Reservation. Twenty-one homes are in potential danger, and the residents have been urged to leave.

In Canton, Massachusetts, a 14-year-old boy has successfully divorced his father in court proceedings. The father had murdered the boy's mother but tried to remain involved in his son's inheritance. The boy's groundbreaking victory came yesterday when his father agreed to a last-minute settlement.

Florida's Wildlife Commission has exonerated the 24-year-old game officer who shot and killed an escaped pet tiger. The review concluded that Jesse Curtis Lee used sound judgment, despite the claims of Bobo the tiger's owner, a movie actor who played Tarzan decades ago. The officer also pleaded for people to stop calling him, quote, "an animal murderer."

Once again, we're standing by. Senator John Kerry is going to be speaking any minute in Norfolk, Virginia. He is making his way to the Democratic National Convention in Boston.

And this is what we're working on for next hour.

ANNOUNCER: The stories CNN is following today, July 27th.

Faith in the workplace.

UNIDENTIFIED FEMALE: You've hit the stained-glass ceiling.

ANNOUNCER: Should religion be practiced on company time? At 11:00, CNN takes an in-depth look.

Then at noon, CNN is live from the Democratic National Convention in Boston. Hip-hop mogul Russell Simmons joins Wolf to discuss his efforts, not only to register young voters, but to get them to the polls in November.

Stay with CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: We are watching a live picture in Norfolk, Virginia. Senator John Kerry, just about on the left-center -- the right-center part of your screen. When he begins to speak from Virginia, we will bring you some of those comments live, as he makes his way to the Democratic National Convention in Boston.

Meanwhile, let's check our situation report out of Iraq. In Baghdad, it's being called one of the largest weapons finds ever. An overnight raid of suspected safe houses yields a collection of guns, missiles, rocket launchers, and explosives. Iraqi police and U.S. forces have been watching the house for about a month now.

Also in Baghdad, an Iraqi civilian is dead and 14 foreign soldiers are hurt after insurgents launched a mortar attack. Rebels fired the rounds near the green zone, housing the new Iraqi government and the U.S. embassy. Officials had no information on the nationalities of the 14 wounded troops.

And a former Egyptian hostage is back at work at the Egyptian embassy in Baghdad a day after his release. The freed Egyptian diplomat says that his Iraqi captors first threatened to kill him, but they reversed course and they eventually treated him well, he says.

The systematic use of kidnapping as a terrorist weapon -- our Matthew Chance looks at this disturbing new trend.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): This is the nightmare of every foreigner working in Iraq. Truck drivers, security guards, even a diplomat have been taken hostage, but everyone linked with the coalition, the reconstruction efforts, or the new Iraqi government seems a target.

SABBAH KADUM, INTERIOR MINISTRY: Really, the intention of the terrorists is to destroy this government. The very fact that has been recognized by a number of countries in the world makes these groups more desperate, because now what are they? Do they really have a political program? And if they do, why don't they unmask their faces and show us this program?

CHANCE: But the holding of hostages under the threat of execution is proving an emotionally charged change of tactics, pressuring companies, even countries to leave Iraq in its chaos. The biggest success of the hostage-takers is the early withdrawal of Philippine forces from Iraq, after one of their nationals, a truck driver, was threatened with execution.

But kidnapping is more than just a problem for foreigners. These Iraqi women are mourning the death of Achmed Abdullah (ph), a Baghdad goldsmith kidnapped and killed last week. The scrap of card is a ransom demand for $50,000. It was never paid. Across Iraq, ordinary families perceived to have money live in fear of abduction.

Iraqi officials believe organized criminals motivated by cash are involved in the taking of foreign hostages, as well.

KADUM: It's the same operation where perhaps they can sell these at a higher price, these organized crime, for a -- at a higher price for some of these terrorism groups that are well financed, whether the groups are originated from Afghanistan or they're groups that used to support the previous regimes who are also well funded.

CHANCE: So, you believe it may be criminal gangs taking the hostages and then selling them up the chain?

KADUM: I think there is evidence of that.

CHANCE: A chain reaction, raising the stakes for many living and working here.

(on camera): Talks to secure the release of the hostages are secretive, often highly dangerous, as well, involving intermediaries, diplomats, even Muslim clerics here. We have learned that teams of police from the U.S. and Britain are in Baghdad and advising the Iraqi government on how to proceed and how to bring to an end this particularly ugly phase of the insurgency.

Matthew Chance, CNN, Baghdad.

(END VIDEOTAPE) KAGAN: And you can always keep up with what's going on in Iraq by heading to our Web site. We have the latest developments, along with a special report. It's called "The Struggle For Iraq." It is all on cnn.com.

And we -- well, we're getting close. Senator Kerry at the podium. As these things go, there are probably a lot of thank yous for him to get through, so we'll take a break while the senator gets through those. And we'll hear his comments just ahead.

(COMMERCIAL BREAK)

KAGAN: And that is Senator John Kerry getting warmed up in Norfolk, Virginia. He is making a campaign swing which started yesterday in Cape Canaveral, Florida, making his way eventually up to Boston and the Democratic National Convention.

Let's listen in to Senator Kerry.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: ... and we're going to tell America what we're going to do. Ready? One, two, three: We can -- all right! We hear you in the garage! We can do better. We can do better, and that's what brings us here today from Norfolk, going backwards to Columbus, Ohio, to Sioux City, Iowa, to Aurora, Colorado, where we began this journey a few days ago.

We are traveling across the country, highlighting in each place the freedom trail of America, the great strength of our nation. We've celebrated yesterday down in Cape Canaveral our technology. I was there with John Glenn and Bill Nelson, both of whom have gone into space, thanks to the great technology of the United States of America. That represents the future.

We were in Sioux City where we talked with people about the strength of Americans. The Lewis and Clark expedition. The ability to push the frontiers and to explore the future.

Columbus, Ohio, where we talked about jobs and the industrial base of our nation, and the work ethic of America and the way we make ourselves strong.

And here today, we are here to talk today to say thank you to those who serve in our military and to provide for the continued strength of the United States of America.

(APPLAUSE)

Military used wisely, yes, ma'am. That is my pledge.

But before I talk to you about some of those issues, I'd like to say a few words about the 9/11 Commission report that was just released.

The commission has done an extraordinary job, important for America, of issuing a very clear set of recommendations to protect us from terrorism and to make the United States safe. Now that the 9/11 Commission has done its job, we need to do our job.

(APPLAUSE)

We understand the threat. We have a blueprint for action. We have the strength as a nation to do what has to be done. The only thing we don't have is time. We need to do it now.

(APPLAUSE)

Leadership -- leadership requires that we act now.

Jane Harman talked a moment ago about the things we could have done. This is the reason that we created the 9/11 Commission in the first place. And that is why, when the commission released their report, I called for immediate action, not talk, not vague promises, not excuses.

Back-pedaling and going slow is something that America can't afford. It will take real bipartisan leadership and real action to protect this country of ours.

(APPLAUSE)

You can't treat the commission's report as something that you hope will go away. You can't treat the commission's report as something that, sort of, represents a threat to America that will go away. Because this threat won't go away, and the recommendations of the commission make sense and they should be implemented now.

(APPLAUSE)

We need to not only recommend -- put in place those recommendations, we need to do everything possible that we know we can do in order to make America safer.

That is why I support the 9/11 Commission's commitment to continue to push for progress and to make sure that its recommendations are implemented without delay.

Ladies and gentlemen, if I were president today, if I had been president last week, I would have immediately said to the commission, "Yes, we're going to implement those recommendations, and we want you to stay on the job for at least another 18 months in order to help make sure we do the job."

(APPLAUSE)

KERRY: Here's what I believe. I believe that, beginning this December, this commission should issue a status report every six months, and they should address the following questions: First, are we doing enough fast enough to strengthen our homeland security? Second, are we reorganizing our intelligence agencies to meet the terrorist threat? Third, are we building a true global alliance to fight the terrorists and isolate their extremist ideology?

(APPLAUSE) Fourth, are we leading and uniting the world so that we isolate our enemies, not ourselves?

(APPLAUSE)

And fifth and finally, they should answer the question, and help Americans answer the question: Are we doing everything we can do to make America as safe as it can be?

Those are the questions I would put on the table. That's the leadership that America needs.

The president has the authority right now, today, to implement many of the commission's recommendations by executive order. And Congress needs to do its part where legislation and/or funding are needed. We cannot let politics get in the way of protecting the American people.

(APPLAUSE)

KERRY: This -- this isn't about partisanship. It's about patriotism. It's not about what was done or wasn't done in the past. It's not about pointing fingers, but it is about winning a war upon which our future depends.

So, I hope the president will now take the necessary steps, implement the commission's recommendations immediately. These are common-sense ideas from a bipartisan commission, and I think we have a responsibility to act and to act now. And I'm convinced that you believe that, too.

That's how we make America safer.

(APPLAUSE)

We've come here, as I said, to Norfolk to honor people who serve their country. Skip Parker and I will never forget, even this day -- we were the guys who what we call citizen soldiers. We'd go in for a number of years, and then we go back to life in America.

But you know what? You may take the uniform off, but you never take it out of your heart or your gut. You never take what it means to stand watch or to fight in battle or serve your country.

And so, Skip and I and the admiral and others who have seen combat come here not because we're veterans, but because we have a sense of what is at stake, because those lessons we learned do mean something, and they are valuable and they're worth passing on to others.

And the first and most important lesson of all is that the great United States of America, our beloved country, never goes to war because it wants to, we go to war because we have to. That's the standard of our country.

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