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9/11 Recommendations; Dueling Campaigns In Davenport

Aired August 04, 2004 - 07:30   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.


HEIDI COLLINS, CNN ANCHOR: Also, the crossroads of Iowa are political crossroads today. President Bush and Senator Kerry going to practically bump into each other in Davenport. We'll look at why that's happening.
BILL HEMMER, CNN ANCHOR: It's a big country, you know?

COLLINS: It is.

HEMMER: And these guys aren't sharing much of it lately, are they?

COLLINS: This is the second time it's happened, too.

HEMMER: Yes, over the weekend, that's right, eastern Ohio and western PA.

Also in a moment here, the terror warnings -- worries, rather, for an upcoming Steven Spielberg film. "90-Second Pop" tackles that later on in this half-hour.

COLLINS: Meanwhile, though, the chairmen of the 9/11 Commission go before the House Intelligence Committee today. They recommend creating a national director to oversee all of the intelligence agencies. Both the president and Congress seem to agree on the position, but they don't see eye to eye on how much power it should have.

Ed Henry at the Capitol for us this morning on this.

Good morning -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning.

The story so far has been that the 9/11 Commission's recommendations have really picked up steam. They appear poised to move quickly through Congress.

But yesterday at two congressional hearings, those proposals kind of hit some speed bumps, and it looks like some political squabbles are developing. At a Senate hearing, lawmakers were asking very tough questions about this new national counterterrorism center that has been proposed by the commission, endorsed by both President Bush and Senator John Kerry. The bottom line is a lot of lawmakers say they still do not understand exactly what this center will do, and it's not really being fully explained to them yet. Over in the House, Democrats were also complaining about that national director of intelligence that you mentioned that the president endorsed earlier this week. And the bottom line there is that Democrats, led by Congressman Henry Waxman, basically said they believe that the way the president has devised this, the person in charge will not have enough power.

Here's what Waxman said.

(BEGIN VIDEO CLIP)

REP. HENRY WAXMAN (D), CALIFORNIA: In this city, if you have a fancy title but you're not in the chain of command and you don't control the budget, you're a figurehead. And another figurehead is not what the 9/11 Commission recommended and what our nation needs.

(END VIDEO CLIP)

HENRY: But the 9/11 commissioners will not let these political battles slow down the push for reform. In fact, the commissioners, in addition to testifying on Capitol Hill today, other commissioners have been on the road all this week. They're pushing outside the Beltway to get the American public engaged in this process.

And, in fact, what commissioners are saying on this road show, they're basically saying that with these new terror threats, everyone has to stay engaged and realize that the reform process has to go forward.

Here's what commissioner Slade Gordon said yesterday in Seattle.

(BEGIN VIDEO CLIP)

SLADE GORDON, 9/11 COMMISSIONER: We are causing congressional members and staffers to work during August when they really didn't want to in many respects, so that Congress can consider a significant number of these recommendations in September and October. This is a good thing. It's an important matter, because essentially, we have said there's a bomb out there, and the fuse is lit.

(END VIDEO CLIP)

HENRY: And the commission co-chairs will be on Capitol Hill this morning, Tom Kean and Lee Hamilton, testifying before the House Intelligence Committee, trying to keep that pressure on.

Also, we could expect some fireworks. Former CIA Director George Tenet will be testifying at this hearing later today. The bottom line there is that George Tenet left in part because of questions about whether the intelligence-gathering process had become politicized on his watch. A lot of concern right now that the new national director of intelligence may also be too political a position, too close to the president -- Heidi.

COLLINS: All right, Ed Henry, thanks so much for that this morning -- Bill. HEMMER: Now to election 2004. The presidential campaign is now in the dog days of August. President Bush arriving in Texas yesterday as he starts a campaign swing through the nation's mid-section.

Meanwhile, Senator John Kerry arriving in Iowa after campaigning first in Wisconsin. Today in Iowa, there will be a rare convergence of campaigns. Both men, both candidates in Davenport holding dueling events in that town just a few blocks from each other in that all- important battleground state yet again.

David Yepsen is the political reporter for the "Des Moines Register." He's with us live this morning in Iowa.

Good morning, David. Nice to have you here with us on AMERICAN MORNING.

DAVID YEPSEN, "DES MOINES REGISTER": Good morning.

HEMMER: Hey, a town of 100,000 66 square miles. Why Davenport?

YEPSEN: It's a battleground state. The campaign in Iowa, it's only seven electoral votes, but it's dead even. Each candidate has about 46 percent of the vote. There are about 7 percent of the voters here who are undecided. That's why they're here.

HEMMER: Seventeen battleground states, depending on who's doing the talking, essentially, and analyzing this across the country. But if we take that argument, already on the map here we have seen at least five of those visited by both men: Pennsylvania, Ohio, Michigan, West Virginia, and now Iowa, your state. What's the strategy that you see unfolding now?

YEPSEN: What both candidates are trying to do, I think, is to, No. 1, shore up their base, make sure there's no erosion there. Secondly, they're going after these undecideds. And the third thing I think is a factor here is going to be the Ralph Nader vote. The polls here in Iowa show Nader gets about 2 percent of the vote. John Kerry certainly would like to make sure that that vote does not leave him.

And so, I think it's just a hammer and tong battle. It is an organizational effort in this state, Bill.

In 2000, Al Gore won this state by only two votes per precinct. So, it's crucial that these candidates do all that they can to get every vote. They've been here a lot. And almost politics never ends in this state, and I expect that they'll be here a lot more.

HEMMER: Two votes per precinct. That is extremely tight.

I talked to senator Kerry on Monday in Grand Rapids, Michigan, another town that saw both men come through there within a three-day period of each. He says -- I'm quoting now -- "Yes, they're sort of following us around." Do you see it the same way?

YEPSEN: Well, I think they're both following each other. I mean, I think to the extent -- I don't think they're willfully going out all the time and trying to step on one another. But if they're in the neighborhood and they can overshadow the other guy in a battleground situation like that, step on the other guy's story a little bit, I think it's something they do. Sure.

HEMMER: Yes. Let's go back to a poll taken out there in your home state: 46 to 46 John Kerry against George Bush, and Ralph Nader gets 2 percent of that vote. Do you see this changing or shifting in one direction or the other anytime soon?

YEPSEN: No, not very quickly. I think people who are undecided are going to be that way for a good long while. Some of them will not participate. But I think there are a lot people who are waiting and seeing. Not a lot of people. There are some people who are waiting and seeing.

We've got another political convention to go through. We've got candidate debates. The whole terrorism thing has people very concerned about who would be the best candidate to handle that.

So, I think this is a closely-divided state politically. It's much like the country in that regard. And, Bill, I just expect this race to go right down to the wire.

HEMMER: And if you're in Davenport today, stay off the streets, because they're going to be crowded. Thank you, David. We'll talk anytime, OK?

YEPSEN: Thank you.

HEMMER: Come on back. David Yepsen in Des Moines, Iowa, this morning.

YEPSEN: Thank you.

HEMMER: Heidi.

COLLINS: Missouri voters have passed a constitutional amendment banning gay marriage. More than 70 percent of voters opted in favor of this controversial issue. Missouri is the first state to vote on a gay marriage amendment since marriages were legalized in the state of Massachusetts. Several other states will vote on similar amendments in November.

Meanwhile, Missouri's Democratic governor was voted out in yesterday's primary. Bob Holden is the first Missouri governor ever to lose in a primary. Holden was unpopular because he wanted to raise taxes. The winner: State Auditor Claire McCaskill, who got more than 50 percent of the vote. She held her victory party in Kansas City, as you see there.

(WEATHER BREAK)

COLLINS: It is 38 minutes past the hour now. Time for a look at some of today's other news with Daryn Kagan.

Some news for travelers in the Middle East -- Daryn. DARYN KAGAN, CNN ANCHOR: Heidi, good morning to you.

The State Department has issued a travel warning for Israel, Gaza and the West Bank. The warning comes in response to recent threats against Americans and U.S. interests in the region.

Meanwhile, one Palestinian was killed and at least one other wounded in an early morning raid in Gaza. Israeli troops say they were targeting members of the militant Islamic group, Hamas.

In Paraguay, there are more deaths after a major blaze at a crowded supermarket. Officials tell CNN Espanol that the death toll rose to 409 overnight. The store's co-owner and five others were reportedly charged with the deaths after a security guard testified he was ordered to lock the burning store's doors to prevent looting.

Here in the U.S., federal prosecutors are expected to unseal an indictment this morning in last year's Staten Island ferry accident. That will include 11 counts of manslaughter and name the captain and pilot as co-defendants. Richard Smith, the assistant captain at the helm, is expected to plead guilty, and the feds will release the results of their 10-month investigation about two hours from now.

And finally, a California woman had quite a surprise when she stepped into her back yard. A big rig had careened off the freeway and smashed through her back yard fence. The trucker lost control of his semi-tractor-trailer along northbound 405, known as the San Diego Freeway. No one was hurt. They are still trying to figure out what the cause of this one was.

You know, home delivery is a nice thing, but I don't think, Heidi, that's exactly what the woman had in mind.

COLLINS: No. Not in the slightest.

KAGAN: No.

COLLINS: All right. Glad nobody was hurt in that. Daryn, thanks so much.

HEMMER: With the line from the movie, "Stripes," "Mom, I'm home!"

COLLINS: Yes, I guess so.

HEMMER: Knock, knock.

A rude awakening for the U.S. Olympic basketball team. Italy pounded the U.S. men's team, beat them embarrassingly 95-78. The Italians giving the Americans the most lopsided defeat since the team added NBA players going back 12 years to 1992. Philadelphia 76ers guard Allen Iverson called that loss a wake-up call.

COLLINS: You think?

HEMMER: The alarm clock -- I just can't see... COLLINS: I can't believe it.

HEMMER: ... people like Allen Iverson and Lebron James getting beat together on the basketball court.

COLLINS: Yes. Watch out for the Italians. All right.

HEMMER: Yes.

COLLINS: Still to come on AMERICAN MORNING, Andy Serwer is "Minding Your Business." He'll tell you why it will take five people to do a job Martha Stewart once did on her own.

HEMMER: Also in "90-Second Pop" today, Halle Berry says life is hard, even when you're beautiful. So she says.

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Welcome back.

Martha Stewart's new TV show has five hosts, but someone is missing among the five. Andy Serwer is not one of them. He's "Minding Your Business" back here.

Is Martha one of them?

ANDY SERWER, "FORTUNE" MAGAZINE: Martha's one of them. Yes, you don't want me hosting a cooking show. Just ask my wife.

Yesterday was Martha Stewart's 63rd birthday, probably one she'll want to forget. Her company announced a $19 million loss. It announced it was shutting down its catalog, keeping the dot.com business, but no more Martha Stewart catalog.

Also announcing a new TV show to begin in January with PBS. That's kind of interesting, first of all. Second of all, as Bill said, five hosts of the show. It's called "Everyday Food," which is sort of linked to that "Everyday Food Magazine" that they put out. And there are five hosts, five different chefs. None of them Martha Stewart. Maybe they can put a camera up in Danbury. You knew that was coming. Anyway, so kind of interesting developments there.

HEMMER: So, they're not using her?

SERWER: No.

HEMMER: And they're not using her name?

SERWER: Right. I mean, it will be produced by Martha Stewart Omnimedia in conjunction with PBS, but it's not going to say Martha Stewart's everyday foods. It's going just be called "Everyday Foods."

HEMMER: Let's talk about Schlotzky's.

SERWER: Yes, I kind of like Schlotzky's.

HEMMER: Yes, it has good sandwiches, right?

SERWER: Right. But they're in a lot of trouble. And I didn't realize this. The company is based in Austin. It was founded in Chicago, I think. There are about 500 of these sandwich shoppies around the United States filing for bankruptcy. How about that? The ticker is -- look at that. You didn't buy the stock, did you?

COLLINS: Wow!

SERWER: From eight to one over the past three years. Millions of dollars of claims and judgments and debts. They're not paying for the buns, I guess.

And another, furthermore, one last food note here. Outback's is buying Chi-Chi's, which was in bankruptcy. Remember them? The first Mexican food national chain founded, of course, in Minneapolis.

COLLINS: Indeed.

SERWER: The bastion of Mexican food in the United States. Remember, we talked about that?

HEMMER: You put the blooming onion with the nachos.

SERWER: Yes, and then you throw in the Schlotzky's, and oh, I'll just skip lunch today.

COLLINS: And the huge margaritas.

COLLINS: Andy, thanks so much for all of that food info.

SERWER: You're welcome.

COLLINS: Appreciate it.

Jack now with the question.

JACK CAFFERTY, CNN ANCHOR: Get you a jalapeno in your prime rib there if you're not careful.

SERWER: Yes, right here.

CAFFERTY: If the government raises the threat level and nothing happens, then they're criticized for crying wolf and maybe playing politics. If they don't say anything and something does happen, then the government is criticized for not giving the public any warning. It's a lose-lose.

And we thought we'd try and get this sorted out so they'd know how to proceed in the future, by asking you: Do you want to be informed about threats, or do you trust the government to keep you safe?

Kate in Lakeside, North Carolina: "I don't believe that we have achieved a state of preparedness. Warnings are not very useful under these circumstances. I really believe these latest warnings are politically motivated to keep the people of the country on edge, try to scare them into keeping Mr. Bush in office."

Carrie in Reston, Virginia, who commutes into Washington, D.C.: "I drive past the World Bank every morning on the way to work. I learned Monday this building has been of interest to the terrorists since the year 2000. So, it could be said I have been at an elevated risk now for four years without knowing it. But I'm still in the dark about what I could do to make my drive safer. This week, as I turned the corner, I resorted to asking myself, 'Do I feel lucky,' followed by a quick prayer."

Jim in Providence: "Code orange for perishable intelligence that's up to four years old is a bit tardy. It reminds me of the imminent threat of non-existent WMD from Iraq."

Charlie in Newport: "If the public knows that level of alert has been raised, they won't be surprised if stopped, their cars are checked. They can plan for delays. Plus, they'll be more aware of suspicious objects or persons around them. More eyes and ears are good."

And Bryony in Glenside, Pennsylvania: "There is no doubt that terror alerts coincide with Bush dipping in the polls. What a coincidence. Worse is that the media dares not publish any viable argument against the alerts; instead, parroting what Tom Ridge tells them."

So somehow...

SERWER: Yes.

CAFFERTY: ... at the end it's the media's fault.

SERWER: Well, you know, the question is a little unfair, though. I mean, it's do you trust the government? You're dangling that in front of them, right?

CAFFERTY: Yes.

SERWER: I mean, people love that.

CAFFERTY: Yes.

SERWER: They love to opine on that.

CAFFERTY: Yes. Well, you know, we try to be clever and creative.

SERWER: Yes, I noticed.

HEMMER: Coming up this morning at 5:00 a.m., they're stopping trucks at random heading into Times Square here in New York City.

SERWER: Yes, being a truck driver around here is not fun, right?

HEMMER: That's right.

COLLINS: No not at all easy, that's for sure. All right, Jack, thanks a lot.

Still to come, your morning dose of "90-Second Pop". "SI" goes searching far and why for its next swimsuit model. And all of it, yes, will be caught on tape.

CAFFERTY: Thank god, some real news.

COLLINS: Stay with us here on AMERICAN MORNING. We know Jack will.

(COMMERCIAL BREAK)

COLLINS: OK, it's time now for another all-new chapter of "90- Second Pop." Introducing the cast for this racy subject today, B.J. Sigesmund, staff editor for "US Weekly," Sarah Bernard, contributing editor for "New York" magazine, and Andy Borowitz of BorowtizReport.com. Wow! Like CEO, somebody in charge stuff today.

ANDY BOROWITZ, BOROWITZREPORT.COM: I know. We're keeping it real today.

COLLINS: Sarah, let's start with you. Halle Berry is saying, you know, it is not easy to be gorgeous. But she also says beauty is meaningless. Well, she is beautiful, so...

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Yes, that bothers me. I don't know.

COLLINS: Is that easy for her to say?

BERNARD: It really is easy for her to say. And the thing about an actress saying this is that it's completely related to her salary. I mean, if he was not beautiful in the way she is, she would not have $12.5 million that she just recently got for "Catwoman." And you know, it's kind of like people who have a lot of money saying, you know, that money isn't everything. But it's essentially, you know, for people who are not actresses, it's really upsetting.

B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Well, still, Halle Berry has had a tough time. You know, her first boyfriend beat her so hard, it punctured her left eardrum. When she was married to David Justice, she took out a restraining order against him. And then we all know that 10 days after she won that Oscar a couple of years ago, she discovered that her husband was a sex addict. So, it has not been easy for Halle Berry, even though she's beautiful.

BERNARD: It hasn't, but I'm sure she will be fine, and I'm sure she will have another boyfriend if she wants one.

BOROWITZ: Look, it's not easy being beautiful. I mean, I hear Jack Cafferty saying this all the time. And I just -- the thing, though, is, you know, with Halle Berry, though, is that she says that beauty is a terrible burden. But that's still no excuse to put on a cat mask. I'm sorry. I don't think it is.

COLLINS: No excuse. You're right.

BOROWITZ: It doesn't excuse that.

COLLINS: You're right.

All right. Well, let's stick with you on this next one now.

BOROWITZ: OK.

COLLINS: I know this is a topic you've been waiting to talk about, the swimsuit models for "Sports Illustrated." They are now going to be -- NBC, I should say -- dipping into the reality TV waters...

BOROWITZ: Right.

COLLINS: ... if you will. And they're going to capture this whole thing on tape.

BOROWITZ: The search for America's greatest swimsuit models of the country?

BERNARD: Right, exactly.

BOROWITZ: I mean, forget about bin Laden. Let's get on the swimsuit model thing. That's what we really have to find. I mean, I guess there's a sense that there's a shortage of swimsuit models? We need to find more?

BERNARD: This is the perfect synergy. I actually think this is -- of all of the new reality shows, I think this one is a definite hit.

COLLINS: Really?

BERNARD: I mean, they've been filming the making of this "Sports Illustrated" swimsuit issue for years. So, really, the only difference is that they're putting the models, four contestants, to live together for a little while so that you have the kind of like "Big Brother" reality show element.

BOROWITZ: Real world.

BERNARD: Real world.

SIGESMUND: The question is: Is it going to be more like "America's Next Top Model"...

COLLINS: Yes.

SIGESMUND: ... which has been a huge hit for UPN? Or a lot like "Are You Hot, the Lorenzo Lamas thing?"

(CROSSTALK) SIGESMUND: Remember with the laser pointer?

BERNARD: Yes.

BOROWITZ: I'm sorry, that was (UNINTELLIGIBLE).

SIGESMUND: Keep the laser pointers away from...

BOROWITZ: I did not miss an episode.

COLLINS: See, I'd forgotten all about that.

SIGESMUND: No laser pointers allowed.

COLLINS: That was so well done.

SIGESMUND: No, I think it's very smart for old, cultural institutions like the "SI" swimsuit issue to be revamping themselves for the reality TV world.

BOROWITZ: But if NBC really wants to find, like, the great swimsuit model, can they just, like, look in Trump's rolodex? I mean, why do they actually have kind of like a whole show? It seems crazy to me.

COLLINS: That might about good point there.

All right, B.J., there are some reports now about Steven Spielberg's movie and the fact that he's going to postpone it. It's called "Vengeance."

SIGESMUND: Right.

COLLINS: Because he's worried about the set and how Islamic terrorists might attack it.

SIGESMUND: Yes.

COLLINS: What do you know about this?

SIGESMUND: Well, just a little bit about the movie to catch people up.

COLLINS: Sure.

SIGESMUND: The movie is the story of the teen that...

COLLINS: Munich, huh?

SIGESMUND: Yes, well, it's about the Munich Olympics, where 11 Israeli athletes were killed. But it's more about tracking down the Palestinian terrorist who killed them and the years-long journey that it took to find those guys. Eric Bana, who made -- got a lot attention this summer for "Troy," is supposed to play the Israeli secret agent who heads up this mission. But, yes, there was a report yesterday in one of the papers saying that Spielberg was nervous that the set was going to become a target for terrorism. But Spielberg's rep is saying that's that not true. They have delayed it because of script changes. They can't get the script to work.

BERNARD: I think it's more...

COLLINS: Why would that come out then? I mean, that's quite a rumor to come out.

BERNARD: Well, I think it is possible. And, you know, with this atmosphere right now, I would understand it. But I think what's more interesting is, I can't imagine wanting to see a movie like that right now. I mean, everyone has their own anxiety, especially living in New York, on a daily basis.

BOROWITZ: That's not exactly escapism, you're saying?

BERNARD: That's right.

BOROWITZ: Yes.

BERNARD: I mean, there is no -- I mean, it makes sense that "Shrek 2," that "Spider-Man 2," these things were the big hits of the summer. I don't think...

COLLINS: Yes.

BERNARD: I can't imagine that movie being what people want to see to escape what we're in right now.

COLLINS: No.

SIGESMUND: Remember, Spielberg made "Schindler's List."

BOROWITZ: Yes.

SIGESMUND: Like this is always been his area. He doesn't make "Shrek 2's" anymore. Now he makes Oscar-winning important films, and this falls into that category.

BOROWITZ: And films about guys waiting in the airport. He does do that.

BERNARD: That's right.

COLLINS: Yes, that's true. Tom Hanks there.

BOROWITZ: I think this sounds like an improvement over that.

BERNARD: Yes.

COLLINS: All right, guys. Thanks so much for that this morning. B.J., Sarah and Andy, as always, thanks.

Bill -- back over to you.

HEMMER: All right, Heidi, thanks.

We'll get a break here. In a moment, the very latest on the heightened terror alert in three U.S. cities. New details today on exactly where that intelligence originated. At the top of the hour, we continue in a moment on AMERICAN MORNING.

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Aired August 4, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Also, the crossroads of Iowa are political crossroads today. President Bush and Senator Kerry going to practically bump into each other in Davenport. We'll look at why that's happening.
BILL HEMMER, CNN ANCHOR: It's a big country, you know?

COLLINS: It is.

HEMMER: And these guys aren't sharing much of it lately, are they?

COLLINS: This is the second time it's happened, too.

HEMMER: Yes, over the weekend, that's right, eastern Ohio and western PA.

Also in a moment here, the terror warnings -- worries, rather, for an upcoming Steven Spielberg film. "90-Second Pop" tackles that later on in this half-hour.

COLLINS: Meanwhile, though, the chairmen of the 9/11 Commission go before the House Intelligence Committee today. They recommend creating a national director to oversee all of the intelligence agencies. Both the president and Congress seem to agree on the position, but they don't see eye to eye on how much power it should have.

Ed Henry at the Capitol for us this morning on this.

Good morning -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning.

The story so far has been that the 9/11 Commission's recommendations have really picked up steam. They appear poised to move quickly through Congress.

But yesterday at two congressional hearings, those proposals kind of hit some speed bumps, and it looks like some political squabbles are developing. At a Senate hearing, lawmakers were asking very tough questions about this new national counterterrorism center that has been proposed by the commission, endorsed by both President Bush and Senator John Kerry. The bottom line is a lot of lawmakers say they still do not understand exactly what this center will do, and it's not really being fully explained to them yet. Over in the House, Democrats were also complaining about that national director of intelligence that you mentioned that the president endorsed earlier this week. And the bottom line there is that Democrats, led by Congressman Henry Waxman, basically said they believe that the way the president has devised this, the person in charge will not have enough power.

Here's what Waxman said.

(BEGIN VIDEO CLIP)

REP. HENRY WAXMAN (D), CALIFORNIA: In this city, if you have a fancy title but you're not in the chain of command and you don't control the budget, you're a figurehead. And another figurehead is not what the 9/11 Commission recommended and what our nation needs.

(END VIDEO CLIP)

HENRY: But the 9/11 commissioners will not let these political battles slow down the push for reform. In fact, the commissioners, in addition to testifying on Capitol Hill today, other commissioners have been on the road all this week. They're pushing outside the Beltway to get the American public engaged in this process.

And, in fact, what commissioners are saying on this road show, they're basically saying that with these new terror threats, everyone has to stay engaged and realize that the reform process has to go forward.

Here's what commissioner Slade Gordon said yesterday in Seattle.

(BEGIN VIDEO CLIP)

SLADE GORDON, 9/11 COMMISSIONER: We are causing congressional members and staffers to work during August when they really didn't want to in many respects, so that Congress can consider a significant number of these recommendations in September and October. This is a good thing. It's an important matter, because essentially, we have said there's a bomb out there, and the fuse is lit.

(END VIDEO CLIP)

HENRY: And the commission co-chairs will be on Capitol Hill this morning, Tom Kean and Lee Hamilton, testifying before the House Intelligence Committee, trying to keep that pressure on.

Also, we could expect some fireworks. Former CIA Director George Tenet will be testifying at this hearing later today. The bottom line there is that George Tenet left in part because of questions about whether the intelligence-gathering process had become politicized on his watch. A lot of concern right now that the new national director of intelligence may also be too political a position, too close to the president -- Heidi.

COLLINS: All right, Ed Henry, thanks so much for that this morning -- Bill. HEMMER: Now to election 2004. The presidential campaign is now in the dog days of August. President Bush arriving in Texas yesterday as he starts a campaign swing through the nation's mid-section.

Meanwhile, Senator John Kerry arriving in Iowa after campaigning first in Wisconsin. Today in Iowa, there will be a rare convergence of campaigns. Both men, both candidates in Davenport holding dueling events in that town just a few blocks from each other in that all- important battleground state yet again.

David Yepsen is the political reporter for the "Des Moines Register." He's with us live this morning in Iowa.

Good morning, David. Nice to have you here with us on AMERICAN MORNING.

DAVID YEPSEN, "DES MOINES REGISTER": Good morning.

HEMMER: Hey, a town of 100,000 66 square miles. Why Davenport?

YEPSEN: It's a battleground state. The campaign in Iowa, it's only seven electoral votes, but it's dead even. Each candidate has about 46 percent of the vote. There are about 7 percent of the voters here who are undecided. That's why they're here.

HEMMER: Seventeen battleground states, depending on who's doing the talking, essentially, and analyzing this across the country. But if we take that argument, already on the map here we have seen at least five of those visited by both men: Pennsylvania, Ohio, Michigan, West Virginia, and now Iowa, your state. What's the strategy that you see unfolding now?

YEPSEN: What both candidates are trying to do, I think, is to, No. 1, shore up their base, make sure there's no erosion there. Secondly, they're going after these undecideds. And the third thing I think is a factor here is going to be the Ralph Nader vote. The polls here in Iowa show Nader gets about 2 percent of the vote. John Kerry certainly would like to make sure that that vote does not leave him.

And so, I think it's just a hammer and tong battle. It is an organizational effort in this state, Bill.

In 2000, Al Gore won this state by only two votes per precinct. So, it's crucial that these candidates do all that they can to get every vote. They've been here a lot. And almost politics never ends in this state, and I expect that they'll be here a lot more.

HEMMER: Two votes per precinct. That is extremely tight.

I talked to senator Kerry on Monday in Grand Rapids, Michigan, another town that saw both men come through there within a three-day period of each. He says -- I'm quoting now -- "Yes, they're sort of following us around." Do you see it the same way?

YEPSEN: Well, I think they're both following each other. I mean, I think to the extent -- I don't think they're willfully going out all the time and trying to step on one another. But if they're in the neighborhood and they can overshadow the other guy in a battleground situation like that, step on the other guy's story a little bit, I think it's something they do. Sure.

HEMMER: Yes. Let's go back to a poll taken out there in your home state: 46 to 46 John Kerry against George Bush, and Ralph Nader gets 2 percent of that vote. Do you see this changing or shifting in one direction or the other anytime soon?

YEPSEN: No, not very quickly. I think people who are undecided are going to be that way for a good long while. Some of them will not participate. But I think there are a lot people who are waiting and seeing. Not a lot of people. There are some people who are waiting and seeing.

We've got another political convention to go through. We've got candidate debates. The whole terrorism thing has people very concerned about who would be the best candidate to handle that.

So, I think this is a closely-divided state politically. It's much like the country in that regard. And, Bill, I just expect this race to go right down to the wire.

HEMMER: And if you're in Davenport today, stay off the streets, because they're going to be crowded. Thank you, David. We'll talk anytime, OK?

YEPSEN: Thank you.

HEMMER: Come on back. David Yepsen in Des Moines, Iowa, this morning.

YEPSEN: Thank you.

HEMMER: Heidi.

COLLINS: Missouri voters have passed a constitutional amendment banning gay marriage. More than 70 percent of voters opted in favor of this controversial issue. Missouri is the first state to vote on a gay marriage amendment since marriages were legalized in the state of Massachusetts. Several other states will vote on similar amendments in November.

Meanwhile, Missouri's Democratic governor was voted out in yesterday's primary. Bob Holden is the first Missouri governor ever to lose in a primary. Holden was unpopular because he wanted to raise taxes. The winner: State Auditor Claire McCaskill, who got more than 50 percent of the vote. She held her victory party in Kansas City, as you see there.

(WEATHER BREAK)

COLLINS: It is 38 minutes past the hour now. Time for a look at some of today's other news with Daryn Kagan.

Some news for travelers in the Middle East -- Daryn. DARYN KAGAN, CNN ANCHOR: Heidi, good morning to you.

The State Department has issued a travel warning for Israel, Gaza and the West Bank. The warning comes in response to recent threats against Americans and U.S. interests in the region.

Meanwhile, one Palestinian was killed and at least one other wounded in an early morning raid in Gaza. Israeli troops say they were targeting members of the militant Islamic group, Hamas.

In Paraguay, there are more deaths after a major blaze at a crowded supermarket. Officials tell CNN Espanol that the death toll rose to 409 overnight. The store's co-owner and five others were reportedly charged with the deaths after a security guard testified he was ordered to lock the burning store's doors to prevent looting.

Here in the U.S., federal prosecutors are expected to unseal an indictment this morning in last year's Staten Island ferry accident. That will include 11 counts of manslaughter and name the captain and pilot as co-defendants. Richard Smith, the assistant captain at the helm, is expected to plead guilty, and the feds will release the results of their 10-month investigation about two hours from now.

And finally, a California woman had quite a surprise when she stepped into her back yard. A big rig had careened off the freeway and smashed through her back yard fence. The trucker lost control of his semi-tractor-trailer along northbound 405, known as the San Diego Freeway. No one was hurt. They are still trying to figure out what the cause of this one was.

You know, home delivery is a nice thing, but I don't think, Heidi, that's exactly what the woman had in mind.

COLLINS: No. Not in the slightest.

KAGAN: No.

COLLINS: All right. Glad nobody was hurt in that. Daryn, thanks so much.

HEMMER: With the line from the movie, "Stripes," "Mom, I'm home!"

COLLINS: Yes, I guess so.

HEMMER: Knock, knock.

A rude awakening for the U.S. Olympic basketball team. Italy pounded the U.S. men's team, beat them embarrassingly 95-78. The Italians giving the Americans the most lopsided defeat since the team added NBA players going back 12 years to 1992. Philadelphia 76ers guard Allen Iverson called that loss a wake-up call.

COLLINS: You think?

HEMMER: The alarm clock -- I just can't see... COLLINS: I can't believe it.

HEMMER: ... people like Allen Iverson and Lebron James getting beat together on the basketball court.

COLLINS: Yes. Watch out for the Italians. All right.

HEMMER: Yes.

COLLINS: Still to come on AMERICAN MORNING, Andy Serwer is "Minding Your Business." He'll tell you why it will take five people to do a job Martha Stewart once did on her own.

HEMMER: Also in "90-Second Pop" today, Halle Berry says life is hard, even when you're beautiful. So she says.

Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Welcome back.

Martha Stewart's new TV show has five hosts, but someone is missing among the five. Andy Serwer is not one of them. He's "Minding Your Business" back here.

Is Martha one of them?

ANDY SERWER, "FORTUNE" MAGAZINE: Martha's one of them. Yes, you don't want me hosting a cooking show. Just ask my wife.

Yesterday was Martha Stewart's 63rd birthday, probably one she'll want to forget. Her company announced a $19 million loss. It announced it was shutting down its catalog, keeping the dot.com business, but no more Martha Stewart catalog.

Also announcing a new TV show to begin in January with PBS. That's kind of interesting, first of all. Second of all, as Bill said, five hosts of the show. It's called "Everyday Food," which is sort of linked to that "Everyday Food Magazine" that they put out. And there are five hosts, five different chefs. None of them Martha Stewart. Maybe they can put a camera up in Danbury. You knew that was coming. Anyway, so kind of interesting developments there.

HEMMER: So, they're not using her?

SERWER: No.

HEMMER: And they're not using her name?

SERWER: Right. I mean, it will be produced by Martha Stewart Omnimedia in conjunction with PBS, but it's not going to say Martha Stewart's everyday foods. It's going just be called "Everyday Foods."

HEMMER: Let's talk about Schlotzky's.

SERWER: Yes, I kind of like Schlotzky's.

HEMMER: Yes, it has good sandwiches, right?

SERWER: Right. But they're in a lot of trouble. And I didn't realize this. The company is based in Austin. It was founded in Chicago, I think. There are about 500 of these sandwich shoppies around the United States filing for bankruptcy. How about that? The ticker is -- look at that. You didn't buy the stock, did you?

COLLINS: Wow!

SERWER: From eight to one over the past three years. Millions of dollars of claims and judgments and debts. They're not paying for the buns, I guess.

And another, furthermore, one last food note here. Outback's is buying Chi-Chi's, which was in bankruptcy. Remember them? The first Mexican food national chain founded, of course, in Minneapolis.

COLLINS: Indeed.

SERWER: The bastion of Mexican food in the United States. Remember, we talked about that?

HEMMER: You put the blooming onion with the nachos.

SERWER: Yes, and then you throw in the Schlotzky's, and oh, I'll just skip lunch today.

COLLINS: And the huge margaritas.

COLLINS: Andy, thanks so much for all of that food info.

SERWER: You're welcome.

COLLINS: Appreciate it.

Jack now with the question.

JACK CAFFERTY, CNN ANCHOR: Get you a jalapeno in your prime rib there if you're not careful.

SERWER: Yes, right here.

CAFFERTY: If the government raises the threat level and nothing happens, then they're criticized for crying wolf and maybe playing politics. If they don't say anything and something does happen, then the government is criticized for not giving the public any warning. It's a lose-lose.

And we thought we'd try and get this sorted out so they'd know how to proceed in the future, by asking you: Do you want to be informed about threats, or do you trust the government to keep you safe?

Kate in Lakeside, North Carolina: "I don't believe that we have achieved a state of preparedness. Warnings are not very useful under these circumstances. I really believe these latest warnings are politically motivated to keep the people of the country on edge, try to scare them into keeping Mr. Bush in office."

Carrie in Reston, Virginia, who commutes into Washington, D.C.: "I drive past the World Bank every morning on the way to work. I learned Monday this building has been of interest to the terrorists since the year 2000. So, it could be said I have been at an elevated risk now for four years without knowing it. But I'm still in the dark about what I could do to make my drive safer. This week, as I turned the corner, I resorted to asking myself, 'Do I feel lucky,' followed by a quick prayer."

Jim in Providence: "Code orange for perishable intelligence that's up to four years old is a bit tardy. It reminds me of the imminent threat of non-existent WMD from Iraq."

Charlie in Newport: "If the public knows that level of alert has been raised, they won't be surprised if stopped, their cars are checked. They can plan for delays. Plus, they'll be more aware of suspicious objects or persons around them. More eyes and ears are good."

And Bryony in Glenside, Pennsylvania: "There is no doubt that terror alerts coincide with Bush dipping in the polls. What a coincidence. Worse is that the media dares not publish any viable argument against the alerts; instead, parroting what Tom Ridge tells them."

So somehow...

SERWER: Yes.

CAFFERTY: ... at the end it's the media's fault.

SERWER: Well, you know, the question is a little unfair, though. I mean, it's do you trust the government? You're dangling that in front of them, right?

CAFFERTY: Yes.

SERWER: I mean, people love that.

CAFFERTY: Yes.

SERWER: They love to opine on that.

CAFFERTY: Yes. Well, you know, we try to be clever and creative.

SERWER: Yes, I noticed.

HEMMER: Coming up this morning at 5:00 a.m., they're stopping trucks at random heading into Times Square here in New York City.

SERWER: Yes, being a truck driver around here is not fun, right?

HEMMER: That's right.

COLLINS: No not at all easy, that's for sure. All right, Jack, thanks a lot.

Still to come, your morning dose of "90-Second Pop". "SI" goes searching far and why for its next swimsuit model. And all of it, yes, will be caught on tape.

CAFFERTY: Thank god, some real news.

COLLINS: Stay with us here on AMERICAN MORNING. We know Jack will.

(COMMERCIAL BREAK)

COLLINS: OK, it's time now for another all-new chapter of "90- Second Pop." Introducing the cast for this racy subject today, B.J. Sigesmund, staff editor for "US Weekly," Sarah Bernard, contributing editor for "New York" magazine, and Andy Borowitz of BorowtizReport.com. Wow! Like CEO, somebody in charge stuff today.

ANDY BOROWITZ, BOROWITZREPORT.COM: I know. We're keeping it real today.

COLLINS: Sarah, let's start with you. Halle Berry is saying, you know, it is not easy to be gorgeous. But she also says beauty is meaningless. Well, she is beautiful, so...

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: Yes, that bothers me. I don't know.

COLLINS: Is that easy for her to say?

BERNARD: It really is easy for her to say. And the thing about an actress saying this is that it's completely related to her salary. I mean, if he was not beautiful in the way she is, she would not have $12.5 million that she just recently got for "Catwoman." And you know, it's kind of like people who have a lot of money saying, you know, that money isn't everything. But it's essentially, you know, for people who are not actresses, it's really upsetting.

B.J. SIGESMUND, STAFF EDITOR, "US WEEKLY": Well, still, Halle Berry has had a tough time. You know, her first boyfriend beat her so hard, it punctured her left eardrum. When she was married to David Justice, she took out a restraining order against him. And then we all know that 10 days after she won that Oscar a couple of years ago, she discovered that her husband was a sex addict. So, it has not been easy for Halle Berry, even though she's beautiful.

BERNARD: It hasn't, but I'm sure she will be fine, and I'm sure she will have another boyfriend if she wants one.

BOROWITZ: Look, it's not easy being beautiful. I mean, I hear Jack Cafferty saying this all the time. And I just -- the thing, though, is, you know, with Halle Berry, though, is that she says that beauty is a terrible burden. But that's still no excuse to put on a cat mask. I'm sorry. I don't think it is.

COLLINS: No excuse. You're right.

BOROWITZ: It doesn't excuse that.

COLLINS: You're right.

All right. Well, let's stick with you on this next one now.

BOROWITZ: OK.

COLLINS: I know this is a topic you've been waiting to talk about, the swimsuit models for "Sports Illustrated." They are now going to be -- NBC, I should say -- dipping into the reality TV waters...

BOROWITZ: Right.

COLLINS: ... if you will. And they're going to capture this whole thing on tape.

BOROWITZ: The search for America's greatest swimsuit models of the country?

BERNARD: Right, exactly.

BOROWITZ: I mean, forget about bin Laden. Let's get on the swimsuit model thing. That's what we really have to find. I mean, I guess there's a sense that there's a shortage of swimsuit models? We need to find more?

BERNARD: This is the perfect synergy. I actually think this is -- of all of the new reality shows, I think this one is a definite hit.

COLLINS: Really?

BERNARD: I mean, they've been filming the making of this "Sports Illustrated" swimsuit issue for years. So, really, the only difference is that they're putting the models, four contestants, to live together for a little while so that you have the kind of like "Big Brother" reality show element.

BOROWITZ: Real world.

BERNARD: Real world.

SIGESMUND: The question is: Is it going to be more like "America's Next Top Model"...

COLLINS: Yes.

SIGESMUND: ... which has been a huge hit for UPN? Or a lot like "Are You Hot, the Lorenzo Lamas thing?"

(CROSSTALK) SIGESMUND: Remember with the laser pointer?

BERNARD: Yes.

BOROWITZ: I'm sorry, that was (UNINTELLIGIBLE).

SIGESMUND: Keep the laser pointers away from...

BOROWITZ: I did not miss an episode.

COLLINS: See, I'd forgotten all about that.

SIGESMUND: No laser pointers allowed.

COLLINS: That was so well done.

SIGESMUND: No, I think it's very smart for old, cultural institutions like the "SI" swimsuit issue to be revamping themselves for the reality TV world.

BOROWITZ: But if NBC really wants to find, like, the great swimsuit model, can they just, like, look in Trump's rolodex? I mean, why do they actually have kind of like a whole show? It seems crazy to me.

COLLINS: That might about good point there.

All right, B.J., there are some reports now about Steven Spielberg's movie and the fact that he's going to postpone it. It's called "Vengeance."

SIGESMUND: Right.

COLLINS: Because he's worried about the set and how Islamic terrorists might attack it.

SIGESMUND: Yes.

COLLINS: What do you know about this?

SIGESMUND: Well, just a little bit about the movie to catch people up.

COLLINS: Sure.

SIGESMUND: The movie is the story of the teen that...

COLLINS: Munich, huh?

SIGESMUND: Yes, well, it's about the Munich Olympics, where 11 Israeli athletes were killed. But it's more about tracking down the Palestinian terrorist who killed them and the years-long journey that it took to find those guys. Eric Bana, who made -- got a lot attention this summer for "Troy," is supposed to play the Israeli secret agent who heads up this mission. But, yes, there was a report yesterday in one of the papers saying that Spielberg was nervous that the set was going to become a target for terrorism. But Spielberg's rep is saying that's that not true. They have delayed it because of script changes. They can't get the script to work.

BERNARD: I think it's more...

COLLINS: Why would that come out then? I mean, that's quite a rumor to come out.

BERNARD: Well, I think it is possible. And, you know, with this atmosphere right now, I would understand it. But I think what's more interesting is, I can't imagine wanting to see a movie like that right now. I mean, everyone has their own anxiety, especially living in New York, on a daily basis.

BOROWITZ: That's not exactly escapism, you're saying?

BERNARD: That's right.

BOROWITZ: Yes.

BERNARD: I mean, there is no -- I mean, it makes sense that "Shrek 2," that "Spider-Man 2," these things were the big hits of the summer. I don't think...

COLLINS: Yes.

BERNARD: I can't imagine that movie being what people want to see to escape what we're in right now.

COLLINS: No.

SIGESMUND: Remember, Spielberg made "Schindler's List."

BOROWITZ: Yes.

SIGESMUND: Like this is always been his area. He doesn't make "Shrek 2's" anymore. Now he makes Oscar-winning important films, and this falls into that category.

BOROWITZ: And films about guys waiting in the airport. He does do that.

BERNARD: That's right.

COLLINS: Yes, that's true. Tom Hanks there.

BOROWITZ: I think this sounds like an improvement over that.

BERNARD: Yes.

COLLINS: All right, guys. Thanks so much for that this morning. B.J., Sarah and Andy, as always, thanks.

Bill -- back over to you.

HEMMER: All right, Heidi, thanks.

We'll get a break here. In a moment, the very latest on the heightened terror alert in three U.S. cities. New details today on exactly where that intelligence originated. At the top of the hour, we continue in a moment on AMERICAN MORNING.

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