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American Morning

The Feds Crack Down on Security at New York's Heliports

Aired August 10, 2004 - 07:00   ET

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


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


BILL HEMMER, CNN ANCHOR: Good morning.
Terrorists apparently casing the Vegas strip, reported al Qaeda home videos of popular casinos. But were authorities to worried about tourism to warn the public in that city.

A bird's eye view for an attack in New York, the feds crack down on security at New York's heliport's.

And the so-called bombshell advance in the Scott Peterson case, is Peterson about to walk free just as the star witness takes the stand on this AMERICAN MORNING?

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

HEMMER: Good morning, everyone, on a Tuesday. All is right in the world. They played football last night.

HEIDI COLLINS, CNN ANCHOR: Oh, thank goodness.

HEMMER: How did we ever get through July?

COLLINS: I don't know. You know, that's a really good question.

HEMMER: Redskins won, just preseason.

COLLINS: I know.

HEMMER: But it got us a little bit of the taste anyway.

Heidi Collins working with us today. Soledad dead at home resting again.

And a major focus for our show today, the terrorist warnings and tourist helicopters in New York City. Some wonder whether or not the choppers should even be in the air.

We'll talk to a former deputy commissioner from NYPD in a matter of moments on his thoughts today.

COLLINS: Also, the Scott Peterson trial resumes today. There is word now of exactly what that new so-called bombshell evidence is. Amber Frey's long-awaited testimony also expected.

We're going to talk with legal analyst Jeffrey Toobin about how she could affect the trial. A lot of people have been waiting to see what she has to say.

HEMMER: Also, a little bit later this hour, "Political Pop" comes your way. Retired general, Tommy Franks, gives his pick for the White House. The choice is not as clear-cut as you might think, though.

But keep in mind, he's selling a book out there. He's kind of riding it both ways. So we'll get to that later.

Jack Cafferty is off today. Andy Borowitz joins us in a few moments for the "Question of the Day." So stay tuned for that as well.

COLLINS: To the news now, though, this morning.

Two newly released surveillance tapes seized after 9/11 reportedly show al Qaeda terrorists may have been targeting three Las Vegas casinos. According to the Associated Press, federal officials say they made local officials aware of the tapes, but the public was not alerted.

Some contend no action was taken out of fears that it might hurt tourism and increase casino liability.

(BEGIN VIDEO CLIP)

RICHARD CONVERTING, FORMER FEDERAL PROSECUTOR: The agent asked for a meeting of the relevant people so he could brief everyone in the Las Vegas law enforcement community. And only two people showed up for the meeting.

The reason that he was given for the low turnout was because of liability, that if they heard this information, they would have to act on its. It was extraordinary, unacceptable and absolutely outrageous.

(END VIDEO CLIP)

COLLINS: But the mayor of Las Vegas contends he was never told about the tapes.

(BEGIN VIDEO CLIP)

MAYOR OSCAR GOODMAN, LAS VEGAS, NEVADA: I was never asked by anybody with the federal authorities to look at any tapes. As a matter of fact, I never even saw the tape on TV that people are talking about.

I never heard the tape being discussed by anybody. No one has ever asked for a meeting with me that had to do with our security in this community where I didn't drop everything and meet with them and then tell the public exactly what the meeting was about.

(END VIDEO CLIP)

COLLINS: The tapes in question were uncovered in Detroit and Spain in 2002. Both contained footage of the MGM Grand, Excalibur and New York, New York casinos.

HEMMER: From Vegas this morning now to here in New York City, the federal government has notified heliport operators it will take over screening of passengers this week, growing concerns that al Qaeda might try to use helicopters as weapons.

Deborah Feyerick filed this for us today.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): High above Manhattan, a tourist helicopter circles the most populated city in America, everything laid out in remarkable detail, the bridges and tunnels, the skyscrapers and rail yards.

Riders can take as many pictures as they like. And it appears al Qaeda operatives did just that.

Law enforcement sources telling CNN along with photos of Citigroup, Prudential and the New York Stock Exchange, al Qaeda operatives were also scouting New York's heliport's.

Surveillance photos show heliport door locks along with helicopter hatches and luggage doors. One source saying, "They were testing security. There was a discussion about the relative ease in which weapons could be smuggled on board helicopters."

A recent FBI bulletin warns that helicopters could be used to attack people at "parades and sporting events, with explosives carried on board to increase the destructive effects," or that they could be used to introduce chemical or biological weapons in to high-rise building ventilation systems.

Those scenarios are theoretical not based on intelligence.

Helicopter expert Steve Massey.

STEVE MASSEY, HELICOPTER EXPERT: If you crash, a lot of times there's a fire and then fire will burn up any chemical agents.

FEYERICK: CNN has learned security directors at some of the high-rise buildings were asked by federal officials whether a helicopter was capable of landing on the building.

MAYOR MICHAEL BLOOMBERG, NEW YORK: Using an aircraft as a weapon, whether it is a fixed wing or a rotary aircraft is nothing new. We learned that lesson on 9/11 at enormous cost.

FEYERICK (on camera): The FBI bulletin is based on information found in recently seized al Qaeda computers. Officials stress there is no credible or specific evidence supporting a helicopter attack.

CNN has learned that agents from the transportation security administration, or people approved by the agency, will soon take over the screening of passengers and their bags at all in New York City heliports. Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

HEMMER: Now today he may be Miami's chief of police, John Timoney no stranger to New York City. He served as first deputy commissioner at NYPD. And Chief Timoney with us now from Miami, Florida.

Good morning and welcome back here to AMERICAN MORNING.

CHIEF JOHN TIMONEY, MIAMI POLICE DEPARTMENT: Good morning, Bill.

HEMMER: First on this Vegas story.

TIMONEY: Yes.

HEMMER: Reported videotapes, perhaps they were casing casinos maybe not. We can't stay for certain.

How do you decide on what information to give to the public and what to hold back?

TIMONEY: I think you have to err on the side of giving too much information. I think the public has a right to know.

But it's always a balancing act because we get accused often of being unnecessary alarmists. But I think if you have the information, I think you have to give it out there. And that way, whether it's the hotel industry or somebody else, they can take appropriate precautions.

HEMMER: Did Vegas make a mistake on this?

TIMONEY: I'm not sure. I don't know all the details. It seems like there's some finger-pointing and some denial, so I'm not sure where it is. But they should have been given the information.

I can tell you I have often called meetings and the expectation is certain people will show up in the business community, and often they don't. That's the reality of life also. People have other things to do than go to meetings.

HEMMER: Here in New York City, the mayor yesterday quite defiant in his news conference.

TIMONEY: Yes.

HEMMER: Essentially telling everybody, what do you think we've been doing for the last three years here in New York.

TIMONEY: Yes.

HEMMER: Here's how he talked about that helicopter warning when asked about it yesterday.

(BEGIN VIDEO CLIP)

BLOOMBERG: You may rest assured that without this information, if you try to get on a helicopter in New York City, you have to go through a magnetometer or a hand-held wand. And they look at your identification and they check everything you carry. That's been going on since 9/11.

(END VIDEO CLIP)

HEMMER: That was the mayor from yesterday. How do helicopter operations change now, chief?

TIMONEY: Well, in New York -- New York is way ahead of everybody else in regards to security measures. And the mayor is absolutely correct, it's been going on in New York. Now it will be federalized somewhat.

However, in other parts of the country, for example down here in Miami, we have reached out to local tour operators, given the information that came out in the FBI's bulletin, with regards to some precautions they can take such as making sure proper identification for passengers, screening them, screening their luggage, at least taking a look that it isn't suspicious, making sure that the cockpit area is secure from the passenger area. And of course, lastly, if there's anything suspicious, give us a call.

And so we have a very strong liaison with the local tour operators down here in Miami.

HEMMER: Chief, we're about 18 days and counting now for the Republican convention here in New York City at Madison Square Garden. The mayor yesterday says, listen we get 50,000 people to a Yankees game.

TIMONEY: Right.

HEMMER: New York can handle events like these.

In big cities like New York, in big cities like Miami, what do authorities have at their fingertips to instill or install in the event that is necessary?

TIMONEY: Well, I think New York is unique. Ray Kelly has devoted thousands of detectives just to undercover, anti-terrorist activities. So he is way ahead of everybody else. And if anybody can stop it, it's going to be the NYPD.

In addition, they have a very elite emergency service to respond and mitigate God forbid something does happen.

So more than any other department, the NYPD is prepared. They've had experience in the past with this, you know, 9/11. Ray Kelly was the police commissioner during the first World Trade Center attack, where the NYPD did a great job in mitigating the damage and the disaster, where only six people died even though about 1,000 were injured. And so, they've got plenty of experience. They do these drills, these scenario drills. They've got the most up-to-date intelligence. And so, more than any other department, whether it's local or federal, the NYPD is prepared.

HEMMER: John Timoney, police chief in Miami, no stranger to New York as we said at the outset. Thank you, chief, nice to talk to you.

TIMONEY: Thanks, Bill.

HEMMER: All right, Heidi?

COLLINS: There's new fighting this morning in Iraq's holy city of Najaf where U.S. Marines battled Shiite militia men in an ancient cemetery. There's been intense fighting in Najaf for the past six days.

Elsewhere, a large explosion rocks central Baghdad as a U.S. military convoy passed through the area.

John Vause is live in Baghdad this morning where there is a security alert now. John, tell us what's happening.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Heidi.

Well, there's been an alert put out that we are expecting some kind of confrontation today between those loyal to the radical Shiite cleric Muqtada Al-Sadr and U.S. forces.

There was a deadline put in place around 1:00, a statement put out by a spokesperson of Muqtada Al-Sadr warning all Iraqis to stay indoors from 1:00 local. That was just over two hours ago.

We've heard a lot of loud explosions all day long. And just a few moments ago we saw a U.S. warplane in the skies overhead firing countermeasures as it passed by.

Now there is something brewing in Baghdad. We're not too sure what. We've sent nonessential staff home, which is why we're broadcasting from our bunker underneath the live shot location which you normally see us at.

Now the ongoing fighting in Najaf, it appears that, that militia, the Medhi army loyal to Muqtada Al-Sadr has, in fact, now dug in, in the Imam Ali mosque compound as well as that cemetery there.

Fighting continues there for another day. And it appears that the governor of Najaf has now given permission to U.S. forces to go in to the Imam Ali mosque and clear out the Medhi forces from there.

Now the U.S. sources there say that they are not prepared to do that just yet. What they've done is surrounded the mosque trying to cut off those supply lines to starve out the militia men inside.

There is, however, an ongoing operation in the cemetery. It is a very big plot of land, three miles wide by about another mile long, complete with small buildings, mausoleum type buildings as well as caves. The U.S. Marines say they've found a large amount of weapons and ammunition in that cemetery as well.

This fighting continues despite calls from the Iraqi prime minister for the Medhi army to lay down their weapons. But Muqtada Al-Sadr said just yesterday he's ready for a fight to the death from Najaf.

He's now, his spokesperson, is now calling on other Islamic organizations to join in the fight to defend the Imam Ali mosque, which is the most sacred site for all of Shiite Muslims -- Heidi?

COLLINS: John Vause, thanks so much for that. We do appreciate it.

It is now 7:11 at this time. Time for a look at some of today's other news with Carol Costello standing by at the CNN Center.

Good morning to you, Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning, Heidi. Thank you.

Police in North Carolina say a teenager is expected to face charges for the possession of pipe bombs. The car of 17-year-old Jerod Williams Brown (ph) was originally sought in a hit and run accident.

Authorities say they later found six pipe bombs in the vehicle and recovered another dozen bombs and explosive making chemicals from Brown's home. The teenager is now in police custody.

Oklahoma City bombing conspirator Terry Nichols addressing the court for the first time as forgiveness for the 1995 bombing of the Alfred P. Murrah federal building. Moments after his statement, he was sentenced on state charges in Oklahoma. Nichols will serve 161 consecutive life sentences without parole.

Fay Wray, the actress best known for her role in the 1933 classic "King Kong" has died. Born Venus Fay Wray, she began her film career in 1923. Spencer Tracy, Cary Grant, Gary Cooper and, of course, King Kong were among her co-stars in a career that spanned nearly 100 films. She was 96 years old.

And by the way, the lights at the Empire State Building will be dimmed tonight in her memory.

Also word this morning of a landslide in Japan. This video just in to CNN -- a huge landslide caught on camera in Japan's central Nara region after heavy rains in the region.

Look at that.

The landslide was reported as it happened by staff of the Japanese ministry of land for inspecting the region for instability. And they found it.

Back to New York now.

HEMMER: So, they were on the scene when that happened, huh Carol?

COSTELLO: Yes, can you believe that?

HEMMER: It's like robbing a bank in front of the police station, isn't it?

COSTELLO: Pretty much so.

HEMMER: Oh my. Look at this.

COSTELLO: Look at that.

HEMMER: Yes.

COSTELLO: This is incredible, and scary.

COLLINS: It looks like it was sped up, but it was real time, huh?

HEMMER: Japan.

Thank you, Carol. Good to have you back with us this morning. We'll talk to you a bit later, OK?

COSTELLO: All right.

HEMMER: All right. Chad Myers watching the weather outside. Don't know if it's staying really nice outside, but I'm hoping.

Good morning.

CHAD MYERS, CNN METEOROLOGIST: You know, Bill, getting a little bit muggy for you. I mean, the humidity is starting to come back...

HEMMER: It's August.

MYERS: ... a little bit. Exactly, and 84 with sunshine in August, nobody complaining about that.

(WEATHER BREAK)

MYERS: Bill, back to you.

HEMMER: Call the family.

COLLINS: Yes. Not used to it yet.

All right, Chad, thanks so much for that.

MYERS: You're welcome.

COLLINS: Still to come this morning, another airline could be on its last leg, a former high flier warns its next stop could be bankruptcy protection.

HEMMER: Also, urgency in Washington, Congress interrupting its traditional August recess for hearings on the 9/11 commission's ideas.

A live report from the hill on what's happening there.

COLLINS: And the other woman tells her story, Scott Peterson's former mistress could take the stand today. But does the defense in the double murder trial have a surprise bombshell?

It's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: From Salt Lake today, Mark Hacking makes his first court appearance today in Utah, charged with murdering his wife, Lori. Hacking is accused of shooting her in the head while she slept on the night of July 19th.

We are told that he will appear today by way of videophone and video link in the courtroom. Prosecutors say he confessed to his two brothers about a week ago -- Heidi?

COLLINS: Now to the Scott Peterson trial, Peterson's former mistress, Amber Frey is expected to take the witness stand when the double murder trial resumes today. Just how important is her testimony to the prosecution?

CNN's senior legal analyst Jeffrey Toobin joining us now with more on that.

But Jeffrey, before we get to Amber Frey, let's talk a little bit about this evidence.

CNN has learned that the evidence centers around a plastic tarp that was found near Laci's body. What's the significance of that?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Well, the idea would be, if the tarp yielded some clues about how she died or, more importantly, who killed her, that could change the complexion of the case completely.

But it's worth remembering that Laci Peterson was under water for many, many weeks. It's hard to imagine that any evidence that was with her could yield much conclusive proof of how she died.

COLLINS: Right, and changing the complexity of the case is one thing, but clearing Scott Peterson, is that even possible?

TOOBIN: I suppose it's possible. You can't really speculate about what's on the tarp. Apparently, according to CNN sources, the tarp came from a cement project that was somewhere near where her body was found.

But how you would even prove that the tarp, in fact, was associated with her after all that time underwater or even that the person who killed her had some access to the tarp, it's just -- it's a very difficult chain of causation. But, you know, you can do testing, and we'll see what happens.

COLLINS: All right. Yes, we definitely will.

All right. Now to Amber Frey. A lot of people have been waiting to hear what Amber Frey has to say, of course, both sides of this case. But in particular they are trying to show that it was this affair between her and Scott that motivated Scott Peterson.

What's she going to say today?

TOOBIN: Right, it's very straightforward from the prosecution's point of view. He was having an affair with Amber Frey. He wanted to get rid of his wife so that they could be together. It's very straightforward. Whether it's true or not, obviously, we don't know at this point.

But that's their -- the defense has a more complicated approach to Amber Frey because on the one hand they basically want to just dismiss her and say look, they had an affair, but that doesn't prove that he's a murderer. It's a completely separate thing, you know, an affair and motive murder.

What will be interesting is whether Mark Geragos, when he starts cross-examination, tries to point the finger some way at Amber Frey and suggest that she had something to do with Laci Peterson's death.

That's a much dicier issue because that might alienate the jury if it just seems too far fetched.

COLLINS: Well what about the 300, or something like 300 phone calls that she apparently recorded, conversations between her and Scott Peterson. How's that going to play in to all of this?

TOOBIN: That's going to be among the most important evidence in the case because it will show Scott Peterson in a completely unrehearsed setting. He will be talking not knowing that he was recorded.

I heard some of those tapes are during the preliminary hearing. He's obviously trying to preserve the relationship. There's no doubt, as Mark Geragos said in his opening statement that he's a cad, he's boorish, he's insensitive. But whether the jury will make the leap from saying he's a creep to he's a murderer, that's a very different question.

COLLINS: That's been the question all along.

All right, Jeffrey Toobin, thanks so much for that. Appreciate it.

Bill, back over to you.

HEMMER: All right, Heidi, break here in a moment. Another major airline fighting for its life. It needs $1 billion give back from pilots or it says it's headed for bankruptcy. Can that airline keep flying?

Business news next here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Breaking news according to the Associated Press right now out of Washington.

Apparently we're getting word now through the AP that Porter Goss, a Republican congressman from this state of Florida will be the man that President Bush will select to try and succeed George Tenet as head of the CIA.

Tenet resigned back in June. Porter Goss, a strong proponent right now of reforming and overhauling the intelligence community as a result of the 9/11 commission. He's been working on the House intelligence committee since, going back to 1997.

Again, the AP reporting that Porter Goss is the man President Bush will select to succeed George Tenet. More on this out of D.C. when we get it, we're certainly working the story from there.

Meanwhile in business news, one of the nation's biggest airlines may seek bankruptcy protection. And if so, this could be a big deal.

Christine Romans in for Andy "Minding Your Business."

Big news in Salt Lake, Cincinnati, Atlanta, Georgia for Delta Airlines.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: Absolutely, turbulence in the airline industry continues. Delta is the number two U.S. airline. And in a filing with the government, it said that it expects to have about $1.3 billion in the bank by the end of the year; and analysts say that just isn't enough to keep going.

Anything below $1.5 billion, they say, could trigger a bankruptcy filing. In fact, Delta conceives the same thing. It says without a lot more cost cuts, its business plan is simply untenable.

Now some of the pilots unions, of course, have said that this is all a lot of gamesmanship, that they want big cuts from the union, from pilots to keep going. But by any stretch of the imagination, this is an airline that is in trouble. And the company even warning that a bankruptcy filing could happen.

HEMMER: Quickly on the markets, it barely budged yesterday, did it not?

ROMANS: We say it was biding its time, waiting for the fed. That's exactly what happened.

Look at that, the Dow down just a fraction of a point, the Nasdaq as well. These are still near the lowest levels of the year.

The S&P 500 up about one point. Oil hit a new record yesterday, seven days in a row. That's one reason for stock investors to be so quiet on the sidelines, as they say.

And the fed meets today. If the fed raises interest rates, that means credit card debt will likely go up. It means if you've got a CD rate, you get a little bit of a better rate on the CD, but it's still not very much.

So watch those adjustable-rate mortgages, watch that credit card debt because rates are probably going up.

HEMMER: We will. Thanks, Christine.

ROMANS: Sure.

HEMMER: All right, Heidi?

COLLINS: Time now for the "Question of the Day." Jack Cafferty, as you know, is taking a little summer vacation. But Andy Borowitz is here. How are you?

ANDY BOROWITZ, "BOROWITZREPORT.COM": I'm good. And I'm very inquisitive. I actually have a question for this day.

COLLINS: Excellent.

BOROWITZ: Now, some people have said that they're not happy with either presidential candidate. Now that's a shocking piece of news. Actor Will Smith has told a Swedish newspaper that he could be president if he wanted to.

Now he would not be the first celebrity to make the leap in to politics. Of course we have Arnold Schwarzenegger and Jesse Ventura, Sonny Bono to name a few.

So our question to you today is, which celebrity would you like to see run for president?

E-mail us now at am@cnn.com.

HEMMER: And which one of them would qualify?

BOROWITZ: Well, I don't know. That's a whole other question.

HEMMER: That's right.

ROMANS: How do politicians qualify?

HEMMER: Nice, Christine.

COLLINS: All right. Andy, thanks so much for that.

BOROWITZ: Thank you.

COLLINS: We'll wait to hear the responses, that's for sure.

Still to come this morning, the 9/11 report is out. Will Congress turn its words in to action now? A live report on today's hearings.

And the general who led the country into Iraq says John Kerry is qualified to be commander-in-chief. Is Tommy Frank's switching sides?

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired August 10, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
Terrorists apparently casing the Vegas strip, reported al Qaeda home videos of popular casinos. But were authorities to worried about tourism to warn the public in that city.

A bird's eye view for an attack in New York, the feds crack down on security at New York's heliport's.

And the so-called bombshell advance in the Scott Peterson case, is Peterson about to walk free just as the star witness takes the stand on this AMERICAN MORNING?

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

HEMMER: Good morning, everyone, on a Tuesday. All is right in the world. They played football last night.

HEIDI COLLINS, CNN ANCHOR: Oh, thank goodness.

HEMMER: How did we ever get through July?

COLLINS: I don't know. You know, that's a really good question.

HEMMER: Redskins won, just preseason.

COLLINS: I know.

HEMMER: But it got us a little bit of the taste anyway.

Heidi Collins working with us today. Soledad dead at home resting again.

And a major focus for our show today, the terrorist warnings and tourist helicopters in New York City. Some wonder whether or not the choppers should even be in the air.

We'll talk to a former deputy commissioner from NYPD in a matter of moments on his thoughts today.

COLLINS: Also, the Scott Peterson trial resumes today. There is word now of exactly what that new so-called bombshell evidence is. Amber Frey's long-awaited testimony also expected.

We're going to talk with legal analyst Jeffrey Toobin about how she could affect the trial. A lot of people have been waiting to see what she has to say.

HEMMER: Also, a little bit later this hour, "Political Pop" comes your way. Retired general, Tommy Franks, gives his pick for the White House. The choice is not as clear-cut as you might think, though.

But keep in mind, he's selling a book out there. He's kind of riding it both ways. So we'll get to that later.

Jack Cafferty is off today. Andy Borowitz joins us in a few moments for the "Question of the Day." So stay tuned for that as well.

COLLINS: To the news now, though, this morning.

Two newly released surveillance tapes seized after 9/11 reportedly show al Qaeda terrorists may have been targeting three Las Vegas casinos. According to the Associated Press, federal officials say they made local officials aware of the tapes, but the public was not alerted.

Some contend no action was taken out of fears that it might hurt tourism and increase casino liability.

(BEGIN VIDEO CLIP)

RICHARD CONVERTING, FORMER FEDERAL PROSECUTOR: The agent asked for a meeting of the relevant people so he could brief everyone in the Las Vegas law enforcement community. And only two people showed up for the meeting.

The reason that he was given for the low turnout was because of liability, that if they heard this information, they would have to act on its. It was extraordinary, unacceptable and absolutely outrageous.

(END VIDEO CLIP)

COLLINS: But the mayor of Las Vegas contends he was never told about the tapes.

(BEGIN VIDEO CLIP)

MAYOR OSCAR GOODMAN, LAS VEGAS, NEVADA: I was never asked by anybody with the federal authorities to look at any tapes. As a matter of fact, I never even saw the tape on TV that people are talking about.

I never heard the tape being discussed by anybody. No one has ever asked for a meeting with me that had to do with our security in this community where I didn't drop everything and meet with them and then tell the public exactly what the meeting was about.

(END VIDEO CLIP)

COLLINS: The tapes in question were uncovered in Detroit and Spain in 2002. Both contained footage of the MGM Grand, Excalibur and New York, New York casinos.

HEMMER: From Vegas this morning now to here in New York City, the federal government has notified heliport operators it will take over screening of passengers this week, growing concerns that al Qaeda might try to use helicopters as weapons.

Deborah Feyerick filed this for us today.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): High above Manhattan, a tourist helicopter circles the most populated city in America, everything laid out in remarkable detail, the bridges and tunnels, the skyscrapers and rail yards.

Riders can take as many pictures as they like. And it appears al Qaeda operatives did just that.

Law enforcement sources telling CNN along with photos of Citigroup, Prudential and the New York Stock Exchange, al Qaeda operatives were also scouting New York's heliport's.

Surveillance photos show heliport door locks along with helicopter hatches and luggage doors. One source saying, "They were testing security. There was a discussion about the relative ease in which weapons could be smuggled on board helicopters."

A recent FBI bulletin warns that helicopters could be used to attack people at "parades and sporting events, with explosives carried on board to increase the destructive effects," or that they could be used to introduce chemical or biological weapons in to high-rise building ventilation systems.

Those scenarios are theoretical not based on intelligence.

Helicopter expert Steve Massey.

STEVE MASSEY, HELICOPTER EXPERT: If you crash, a lot of times there's a fire and then fire will burn up any chemical agents.

FEYERICK: CNN has learned security directors at some of the high-rise buildings were asked by federal officials whether a helicopter was capable of landing on the building.

MAYOR MICHAEL BLOOMBERG, NEW YORK: Using an aircraft as a weapon, whether it is a fixed wing or a rotary aircraft is nothing new. We learned that lesson on 9/11 at enormous cost.

FEYERICK (on camera): The FBI bulletin is based on information found in recently seized al Qaeda computers. Officials stress there is no credible or specific evidence supporting a helicopter attack.

CNN has learned that agents from the transportation security administration, or people approved by the agency, will soon take over the screening of passengers and their bags at all in New York City heliports. Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

HEMMER: Now today he may be Miami's chief of police, John Timoney no stranger to New York City. He served as first deputy commissioner at NYPD. And Chief Timoney with us now from Miami, Florida.

Good morning and welcome back here to AMERICAN MORNING.

CHIEF JOHN TIMONEY, MIAMI POLICE DEPARTMENT: Good morning, Bill.

HEMMER: First on this Vegas story.

TIMONEY: Yes.

HEMMER: Reported videotapes, perhaps they were casing casinos maybe not. We can't stay for certain.

How do you decide on what information to give to the public and what to hold back?

TIMONEY: I think you have to err on the side of giving too much information. I think the public has a right to know.

But it's always a balancing act because we get accused often of being unnecessary alarmists. But I think if you have the information, I think you have to give it out there. And that way, whether it's the hotel industry or somebody else, they can take appropriate precautions.

HEMMER: Did Vegas make a mistake on this?

TIMONEY: I'm not sure. I don't know all the details. It seems like there's some finger-pointing and some denial, so I'm not sure where it is. But they should have been given the information.

I can tell you I have often called meetings and the expectation is certain people will show up in the business community, and often they don't. That's the reality of life also. People have other things to do than go to meetings.

HEMMER: Here in New York City, the mayor yesterday quite defiant in his news conference.

TIMONEY: Yes.

HEMMER: Essentially telling everybody, what do you think we've been doing for the last three years here in New York.

TIMONEY: Yes.

HEMMER: Here's how he talked about that helicopter warning when asked about it yesterday.

(BEGIN VIDEO CLIP)

BLOOMBERG: You may rest assured that without this information, if you try to get on a helicopter in New York City, you have to go through a magnetometer or a hand-held wand. And they look at your identification and they check everything you carry. That's been going on since 9/11.

(END VIDEO CLIP)

HEMMER: That was the mayor from yesterday. How do helicopter operations change now, chief?

TIMONEY: Well, in New York -- New York is way ahead of everybody else in regards to security measures. And the mayor is absolutely correct, it's been going on in New York. Now it will be federalized somewhat.

However, in other parts of the country, for example down here in Miami, we have reached out to local tour operators, given the information that came out in the FBI's bulletin, with regards to some precautions they can take such as making sure proper identification for passengers, screening them, screening their luggage, at least taking a look that it isn't suspicious, making sure that the cockpit area is secure from the passenger area. And of course, lastly, if there's anything suspicious, give us a call.

And so we have a very strong liaison with the local tour operators down here in Miami.

HEMMER: Chief, we're about 18 days and counting now for the Republican convention here in New York City at Madison Square Garden. The mayor yesterday says, listen we get 50,000 people to a Yankees game.

TIMONEY: Right.

HEMMER: New York can handle events like these.

In big cities like New York, in big cities like Miami, what do authorities have at their fingertips to instill or install in the event that is necessary?

TIMONEY: Well, I think New York is unique. Ray Kelly has devoted thousands of detectives just to undercover, anti-terrorist activities. So he is way ahead of everybody else. And if anybody can stop it, it's going to be the NYPD.

In addition, they have a very elite emergency service to respond and mitigate God forbid something does happen.

So more than any other department, the NYPD is prepared. They've had experience in the past with this, you know, 9/11. Ray Kelly was the police commissioner during the first World Trade Center attack, where the NYPD did a great job in mitigating the damage and the disaster, where only six people died even though about 1,000 were injured. And so, they've got plenty of experience. They do these drills, these scenario drills. They've got the most up-to-date intelligence. And so, more than any other department, whether it's local or federal, the NYPD is prepared.

HEMMER: John Timoney, police chief in Miami, no stranger to New York as we said at the outset. Thank you, chief, nice to talk to you.

TIMONEY: Thanks, Bill.

HEMMER: All right, Heidi?

COLLINS: There's new fighting this morning in Iraq's holy city of Najaf where U.S. Marines battled Shiite militia men in an ancient cemetery. There's been intense fighting in Najaf for the past six days.

Elsewhere, a large explosion rocks central Baghdad as a U.S. military convoy passed through the area.

John Vause is live in Baghdad this morning where there is a security alert now. John, tell us what's happening.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Heidi.

Well, there's been an alert put out that we are expecting some kind of confrontation today between those loyal to the radical Shiite cleric Muqtada Al-Sadr and U.S. forces.

There was a deadline put in place around 1:00, a statement put out by a spokesperson of Muqtada Al-Sadr warning all Iraqis to stay indoors from 1:00 local. That was just over two hours ago.

We've heard a lot of loud explosions all day long. And just a few moments ago we saw a U.S. warplane in the skies overhead firing countermeasures as it passed by.

Now there is something brewing in Baghdad. We're not too sure what. We've sent nonessential staff home, which is why we're broadcasting from our bunker underneath the live shot location which you normally see us at.

Now the ongoing fighting in Najaf, it appears that, that militia, the Medhi army loyal to Muqtada Al-Sadr has, in fact, now dug in, in the Imam Ali mosque compound as well as that cemetery there.

Fighting continues there for another day. And it appears that the governor of Najaf has now given permission to U.S. forces to go in to the Imam Ali mosque and clear out the Medhi forces from there.

Now the U.S. sources there say that they are not prepared to do that just yet. What they've done is surrounded the mosque trying to cut off those supply lines to starve out the militia men inside.

There is, however, an ongoing operation in the cemetery. It is a very big plot of land, three miles wide by about another mile long, complete with small buildings, mausoleum type buildings as well as caves. The U.S. Marines say they've found a large amount of weapons and ammunition in that cemetery as well.

This fighting continues despite calls from the Iraqi prime minister for the Medhi army to lay down their weapons. But Muqtada Al-Sadr said just yesterday he's ready for a fight to the death from Najaf.

He's now, his spokesperson, is now calling on other Islamic organizations to join in the fight to defend the Imam Ali mosque, which is the most sacred site for all of Shiite Muslims -- Heidi?

COLLINS: John Vause, thanks so much for that. We do appreciate it.

It is now 7:11 at this time. Time for a look at some of today's other news with Carol Costello standing by at the CNN Center.

Good morning to you, Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning, Heidi. Thank you.

Police in North Carolina say a teenager is expected to face charges for the possession of pipe bombs. The car of 17-year-old Jerod Williams Brown (ph) was originally sought in a hit and run accident.

Authorities say they later found six pipe bombs in the vehicle and recovered another dozen bombs and explosive making chemicals from Brown's home. The teenager is now in police custody.

Oklahoma City bombing conspirator Terry Nichols addressing the court for the first time as forgiveness for the 1995 bombing of the Alfred P. Murrah federal building. Moments after his statement, he was sentenced on state charges in Oklahoma. Nichols will serve 161 consecutive life sentences without parole.

Fay Wray, the actress best known for her role in the 1933 classic "King Kong" has died. Born Venus Fay Wray, she began her film career in 1923. Spencer Tracy, Cary Grant, Gary Cooper and, of course, King Kong were among her co-stars in a career that spanned nearly 100 films. She was 96 years old.

And by the way, the lights at the Empire State Building will be dimmed tonight in her memory.

Also word this morning of a landslide in Japan. This video just in to CNN -- a huge landslide caught on camera in Japan's central Nara region after heavy rains in the region.

Look at that.

The landslide was reported as it happened by staff of the Japanese ministry of land for inspecting the region for instability. And they found it.

Back to New York now.

HEMMER: So, they were on the scene when that happened, huh Carol?

COSTELLO: Yes, can you believe that?

HEMMER: It's like robbing a bank in front of the police station, isn't it?

COSTELLO: Pretty much so.

HEMMER: Oh my. Look at this.

COSTELLO: Look at that.

HEMMER: Yes.

COSTELLO: This is incredible, and scary.

COLLINS: It looks like it was sped up, but it was real time, huh?

HEMMER: Japan.

Thank you, Carol. Good to have you back with us this morning. We'll talk to you a bit later, OK?

COSTELLO: All right.

HEMMER: All right. Chad Myers watching the weather outside. Don't know if it's staying really nice outside, but I'm hoping.

Good morning.

CHAD MYERS, CNN METEOROLOGIST: You know, Bill, getting a little bit muggy for you. I mean, the humidity is starting to come back...

HEMMER: It's August.

MYERS: ... a little bit. Exactly, and 84 with sunshine in August, nobody complaining about that.

(WEATHER BREAK)

MYERS: Bill, back to you.

HEMMER: Call the family.

COLLINS: Yes. Not used to it yet.

All right, Chad, thanks so much for that.

MYERS: You're welcome.

COLLINS: Still to come this morning, another airline could be on its last leg, a former high flier warns its next stop could be bankruptcy protection.

HEMMER: Also, urgency in Washington, Congress interrupting its traditional August recess for hearings on the 9/11 commission's ideas.

A live report from the hill on what's happening there.

COLLINS: And the other woman tells her story, Scott Peterson's former mistress could take the stand today. But does the defense in the double murder trial have a surprise bombshell?

It's all ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: From Salt Lake today, Mark Hacking makes his first court appearance today in Utah, charged with murdering his wife, Lori. Hacking is accused of shooting her in the head while she slept on the night of July 19th.

We are told that he will appear today by way of videophone and video link in the courtroom. Prosecutors say he confessed to his two brothers about a week ago -- Heidi?

COLLINS: Now to the Scott Peterson trial, Peterson's former mistress, Amber Frey is expected to take the witness stand when the double murder trial resumes today. Just how important is her testimony to the prosecution?

CNN's senior legal analyst Jeffrey Toobin joining us now with more on that.

But Jeffrey, before we get to Amber Frey, let's talk a little bit about this evidence.

CNN has learned that the evidence centers around a plastic tarp that was found near Laci's body. What's the significance of that?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: Well, the idea would be, if the tarp yielded some clues about how she died or, more importantly, who killed her, that could change the complexion of the case completely.

But it's worth remembering that Laci Peterson was under water for many, many weeks. It's hard to imagine that any evidence that was with her could yield much conclusive proof of how she died.

COLLINS: Right, and changing the complexity of the case is one thing, but clearing Scott Peterson, is that even possible?

TOOBIN: I suppose it's possible. You can't really speculate about what's on the tarp. Apparently, according to CNN sources, the tarp came from a cement project that was somewhere near where her body was found.

But how you would even prove that the tarp, in fact, was associated with her after all that time underwater or even that the person who killed her had some access to the tarp, it's just -- it's a very difficult chain of causation. But, you know, you can do testing, and we'll see what happens.

COLLINS: All right. Yes, we definitely will.

All right. Now to Amber Frey. A lot of people have been waiting to hear what Amber Frey has to say, of course, both sides of this case. But in particular they are trying to show that it was this affair between her and Scott that motivated Scott Peterson.

What's she going to say today?

TOOBIN: Right, it's very straightforward from the prosecution's point of view. He was having an affair with Amber Frey. He wanted to get rid of his wife so that they could be together. It's very straightforward. Whether it's true or not, obviously, we don't know at this point.

But that's their -- the defense has a more complicated approach to Amber Frey because on the one hand they basically want to just dismiss her and say look, they had an affair, but that doesn't prove that he's a murderer. It's a completely separate thing, you know, an affair and motive murder.

What will be interesting is whether Mark Geragos, when he starts cross-examination, tries to point the finger some way at Amber Frey and suggest that she had something to do with Laci Peterson's death.

That's a much dicier issue because that might alienate the jury if it just seems too far fetched.

COLLINS: Well what about the 300, or something like 300 phone calls that she apparently recorded, conversations between her and Scott Peterson. How's that going to play in to all of this?

TOOBIN: That's going to be among the most important evidence in the case because it will show Scott Peterson in a completely unrehearsed setting. He will be talking not knowing that he was recorded.

I heard some of those tapes are during the preliminary hearing. He's obviously trying to preserve the relationship. There's no doubt, as Mark Geragos said in his opening statement that he's a cad, he's boorish, he's insensitive. But whether the jury will make the leap from saying he's a creep to he's a murderer, that's a very different question.

COLLINS: That's been the question all along.

All right, Jeffrey Toobin, thanks so much for that. Appreciate it.

Bill, back over to you.

HEMMER: All right, Heidi, break here in a moment. Another major airline fighting for its life. It needs $1 billion give back from pilots or it says it's headed for bankruptcy. Can that airline keep flying?

Business news next here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Breaking news according to the Associated Press right now out of Washington.

Apparently we're getting word now through the AP that Porter Goss, a Republican congressman from this state of Florida will be the man that President Bush will select to try and succeed George Tenet as head of the CIA.

Tenet resigned back in June. Porter Goss, a strong proponent right now of reforming and overhauling the intelligence community as a result of the 9/11 commission. He's been working on the House intelligence committee since, going back to 1997.

Again, the AP reporting that Porter Goss is the man President Bush will select to succeed George Tenet. More on this out of D.C. when we get it, we're certainly working the story from there.

Meanwhile in business news, one of the nation's biggest airlines may seek bankruptcy protection. And if so, this could be a big deal.

Christine Romans in for Andy "Minding Your Business."

Big news in Salt Lake, Cincinnati, Atlanta, Georgia for Delta Airlines.

CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: Absolutely, turbulence in the airline industry continues. Delta is the number two U.S. airline. And in a filing with the government, it said that it expects to have about $1.3 billion in the bank by the end of the year; and analysts say that just isn't enough to keep going.

Anything below $1.5 billion, they say, could trigger a bankruptcy filing. In fact, Delta conceives the same thing. It says without a lot more cost cuts, its business plan is simply untenable.

Now some of the pilots unions, of course, have said that this is all a lot of gamesmanship, that they want big cuts from the union, from pilots to keep going. But by any stretch of the imagination, this is an airline that is in trouble. And the company even warning that a bankruptcy filing could happen.

HEMMER: Quickly on the markets, it barely budged yesterday, did it not?

ROMANS: We say it was biding its time, waiting for the fed. That's exactly what happened.

Look at that, the Dow down just a fraction of a point, the Nasdaq as well. These are still near the lowest levels of the year.

The S&P 500 up about one point. Oil hit a new record yesterday, seven days in a row. That's one reason for stock investors to be so quiet on the sidelines, as they say.

And the fed meets today. If the fed raises interest rates, that means credit card debt will likely go up. It means if you've got a CD rate, you get a little bit of a better rate on the CD, but it's still not very much.

So watch those adjustable-rate mortgages, watch that credit card debt because rates are probably going up.

HEMMER: We will. Thanks, Christine.

ROMANS: Sure.

HEMMER: All right, Heidi?

COLLINS: Time now for the "Question of the Day." Jack Cafferty, as you know, is taking a little summer vacation. But Andy Borowitz is here. How are you?

ANDY BOROWITZ, "BOROWITZREPORT.COM": I'm good. And I'm very inquisitive. I actually have a question for this day.

COLLINS: Excellent.

BOROWITZ: Now, some people have said that they're not happy with either presidential candidate. Now that's a shocking piece of news. Actor Will Smith has told a Swedish newspaper that he could be president if he wanted to.

Now he would not be the first celebrity to make the leap in to politics. Of course we have Arnold Schwarzenegger and Jesse Ventura, Sonny Bono to name a few.

So our question to you today is, which celebrity would you like to see run for president?

E-mail us now at am@cnn.com.

HEMMER: And which one of them would qualify?

BOROWITZ: Well, I don't know. That's a whole other question.

HEMMER: That's right.

ROMANS: How do politicians qualify?

HEMMER: Nice, Christine.

COLLINS: All right. Andy, thanks so much for that.

BOROWITZ: Thank you.

COLLINS: We'll wait to hear the responses, that's for sure.

Still to come this morning, the 9/11 report is out. Will Congress turn its words in to action now? A live report on today's hearings.

And the general who led the country into Iraq says John Kerry is qualified to be commander-in-chief. Is Tommy Frank's switching sides?

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

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