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American Morning

Porter Goss Pegged by President to Succeed George Tenet; 'Paging Dr. Gupta'

Aired August 10, 2004 - 08:30   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.


BILL HEMMER, CNN ANCHOR: Welcome back, everyone, and good morning.
If you're just joining us, the news out of Washington, the White House, the camera trained right now on the Oval Office where we anticipate any moment now for President Bush to emerge and make his announcement supporting Porter Goss, a Republican congressman out of Florida, to be the successor to George Tenet as head of the CIA.

HEIDI COLLINS, CNN ANCHOR: And good morning once again, everybody. I'm Heidi Collins in for Soledad who is awaiting the arrival of those two precious babies.

HEMMER: That she is. Yes.

As we look at the picture here in Washington -- get you back to the White House any moment now. Sixty-five years old, Porter Goss, a graduate of Yale University. Married with four children, 11 grandchildren, we're told.

He has worked for the Army intelligence in the past. Also, CIA's most well known division -- the director of operations.

When he first ran for Congress, he had to disclose at that point that he had activity with the CIA, the agency, and since that time from Florida dating back to 1997 on the House Intelligence Committee, and a strong proponent of changing the intelligence community.

To what degree we cannot define just yet, but certainly with the recommendations from the 9/11 Commission and the hearings today with Lee Hamilton and Thomas Kean on Capitol Hill, this will be front and center yet again today.

COLLINS: And Porter Goss had been mentioned a while ago when Tenet had first announced that he would be leaving, so certainly someone to be watching, and we see him coming out with the president here in just a moment.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all for coming.

I'm pleased to announce my decision to nominate Congressman Porter Goss as the next director of the Central Intelligence Agency.

Porter Goss is a leader with strong experience in intelligence and in the fight against terrorism. He knows the CIA inside and out. He's the right man to lead this important agency at this critical moment in our nation's history.

The work of the CIA is vital to our security. America faces determined enemies who plan in many nations, send trained killers to live among us, and attack without warning.

This threat is unprecedented, and to stop them from killing our citizens we must have the best intelligence possible.

The men and women of the CIA must penetrate closed societies and secretive organizations. They must overcome challenges of language and culture and learn things that our adversaries don't want us to know.

Because their work is secret, the men and women of the CIA receive little recognition, but they're protecting our country every day.

Since September 11th, our intelligence professionals have worked with great determination to stop another attack on America.

BUSH: And our country is grateful.

Director George Tenet and Acting Director John McLaughlin have served our nation with distinction and honor, and now, with the agreement of the U.S. Senate, the CIA will have another strong leader in Porter Goss.

I've given Porter an essential mission: to lead the agency for the challenges and threats of a dangerous new century. He is well- prepared for this mission. Porter Goss brings a broad experience to this critical job.

He's a former Army intelligence officer, with a decade of experience in the CIA's clandestine service. He knows the agency and he knows what's needed to strengthen it.

He understands the importance of human intelligence. He was a CIA field officer on two continents.

He'll make sure that the men and women of the CIA have the capabilities and skills they need to penetrate the hard targets in denied areas, and to get to know the enemy firsthand.

He also knows the importance of investing in technologies that allow us to look and listen better. And he will work to ensure the agency remains on the cutting edge of technological change.

BUSH: As chairman of the House Select Committee on Intelligence since 1997, and as a member of the Commission on the Roles and Capabilities of the United States Intelligence Community, he has been a leading voice on intelligence and national security and terrorism.

He's been a force for positive change.

His experience on Capitol Hill will serve him well at the CIA, because he's respected on both sides of the aisle and because he understands the important role Congress must play in the effort to improve our nation's intelligence capabilities.

Over 15 years of service, Porter Goss has built a reputation as a reformer. He'll be a reformer at the Central Intelligence Agency.

I look forward to his counsel and his judgments as to how best to implement broader intel reform, including the recommendations of the 9/11 commission.

I appreciate your many years, Porter, of service to our country. I appreciate your willingness to serve. I'm grateful that you've agreed to step forward and serve once again.

BUSH: Welcome.

REP. PORTER GOSS (R), FLORIDA: Thank you very much, Mr. President.

I'm obviously deeply honored, and I'm extremely grateful for the opportunity. You've outlined a very strong challenge.

I think every American knows the importance of the best possible intelligence we can get to our decision-makers. It is vital, as the president has well said.

What many Americans don't realize is that we've got an awful lot of people around the globe doing very, very hard work, long hours and dangerous situations.

The essence of our intelligence capability is people. And we have some wonderful Americans doing a great job.

I used to be part of them when I worked for CIA. I'm very proud to be associated with them again and I look forward to the challenges of the future.

I also look forward to the confirmation process with the Senate. As a member right now on the Hill, I know the value of that and the importance of that.

Thank you very much, Mr. President.

BUSH: Good job.

Thank you, sir.

GOSS: Thank you, sir.

HEMMER: So it is official, the news that first broke about an hour and twenty minutes ago, Porter Goss is the man pegged by the president to succeed George Tenet who left the CIA back on the 11th of July.

The president in his words today talking about Porter Goss being a leading voice on intelligence and a leading voice on terrorism.

A reputation as a reformer and the president insisting that he will be a reformer at the CIA as well.

Now Senate confirmation comes, talking with Ed Henry last hour, this is not a done deal according to some members of Congress. There will be an awful lot of talk about how the next director of the CIA takes the responsibilities that have been recommended by the 9/11 Commission.

Porter Goss, 65-years-old, first ran for the House back in 1988 out of Florida. Sixteen years, including eight years serving on the House Intelligence Committee.

Lately as the chairman of that committee. In addition to that, Porter Goss said the election of 2000 would be his last as a member of Congress, but changed his mind after the events of September 11th. So, again, Porter Goss is the one pegged by the White House.

We will see where this argument goes throughout the day today and again, eventually into the possibility of Senate confirmation.

Let's leave that behind us now and talk about Iraq this morning. U.S. forces in their sixth day of fighting with insurgents in the town of Najaf -- it has been deadly oftentimes over the past six days. Radical Shiite cleric Muqtada al-Sadr has emerged to reject demands that he and his Mehdi Army surrender.

Is al-Sadr then the question? The interim Iraqi government's biggest concern now.

Our analyst Ken Pollack is with us at Brookings Institution live with us in D.C. We were going to hear from Muqtada al-Sadr there for a moment -- didn't have it cued up -- that's OK. Ken, good morning to you.

KEN POLLACK, CNN ANALYST: Morning, Bill.

HEMMER: With the current fighting, Marines and now the Army joining that in Najaf and Ayad Allawi the very, very tough words over the past few days -- is this the best way to squeeze al-Sadr?

POLLACK: Unfortunately, it probably is, Bill. And I think that one of the things that we need to keep in mind is that it seems to be the case that the reason that we've seen this flare up in fighting is part of a fairly successful strategy on the part of the U.S. and the new Iraqi government rather than just trying to go in and bulldoze Najaf as they tried to do back in April.

They've been working a combined political and military strategy and that seems to be putting a lot more pressure on Muqtada al-Sadr that seems to be, although at this point we're relying on not very good information -- that seems to be why once again he has flared up because he saw his freedom of action being constricted and he wanted to push back on it.

HEMMER: Yes, listen; we have that sound bite now. Here's what he said recently about the current fighting.

(BEGIN VIDEO CLIP)

MUQTADA AL-SADR, MUSLIM CLERIC (through translator): I will continue with resistance and I will remain in Najaf. I will not leave. I will continue to defend Najaf, as it is the holiest place. I will remain in the city until the last drop of my blood has been spilled.

(END VIDEO CLIP)

HEMMER: There is a suggestion in all of this that this is fight to the death. Do you see it that way?

POLLACK: Well, look; you can't rule these things out. There's a long tradition of martyrdom in Shia Islam.

It is possible that Muqtada al-Sadr might choose to go that route, but we've seen him be very practical in the past and this sounds a lot more rhetorical right now than determined.

We've seen him be willing to make deals with Iraqi formations, with the U.S. in the past. My guess is that this is mostly for his people to keep their spirits up, but I think he right now is feeling very pressed and is looking for some way out of the current situation.

HEMMER: Ayad Allawi has talked very tough in the past few days, reinstating the death penalty late on Sunday night. Iraqis responded to tough leaders under dictators like Saddam Hussein. Do they still respond to tough leaders today?

POLLACK: I think they do, and I think that's one of the reasons why Allawi is taking this route and first that is Ayad's predisposition. That's the way that he feels most comfortable, so I think it is kind of natural for him to move in this route.

But one of the things that Iraqi's complained about most in the 12 to 14 months immediately after the invasion of Iraq was that the United States wasn't doing enough to keep control over the society to deal with lawlessness, to deal with the insurgents, and this is really Ayad coming in and saying to the Iraqi people -- I understand your biggest problem, your biggest problem is security, and I'm going to show you that I'm going to take the hard decisions to deal with that problem.

HEMMER: If I could, quickly, Chalabi was in Iran. If he returns to Iraq it's likely he'll be arrested.

Does he stay out of the country, A, and is this truly an in fight between Ayad Allawi and Ahmed Chalabi knowing that these two men went to school together as young men in Iraq? Is it a rivalry in the political sense?

POLLACK: There's no question that they're rivals, Bill. We saw it back when Chalabi and Allawi were both members of the Iraqi exile community and trying to work with the U.S. government to overthrow Saddam. There was a rivalry even then. In this case, I don't think it's clear whether this is a rivalry necessarily between Allawi and Chalabi -- it may be a problem between Chalabi and the judge who issued the arrest warrant.

But by the same token I think we should keep in mind Ahmed Chalabi is had charges of financial impropriety trail him everywhere he's ever been. This is now the third government that has charged financial improprieties against Ahmed Chalabi -- it may just be the case that these are true.

HEMMER: Ken thanks. Ken Pollack -- thanks for being patient. The Porter Goss news bumped you down a little bit but nice to talk to you. Thanks -- Heidi.

COLLINS: Forty-three minutes past the hour now. Time for a look at some of today's other news and Carol Costello once again. Carol, good morning.

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

The retrial of the only suspect convicted in the September 11th terror attacks began in Germany today.

A new trial was ordered in March after a judge dismissed Mounir Motassadeq's conviction on grounds that a main informant was kept from testifying. U.S. officials now say they will hand over some key information but will not allow German judges to question suspected al Qaeda prisoners.

Here in the United States, the co-chairs of the 9/11 Commission are on Capitol Hill this morning. They'll appear before the House Armed Services Committee to lobby for their recommendations to fight terrorism. The committee will meet in just over three hours.

Arizona's deadliest border crossing in three years -- authorities are calling off the search for the last member of a group of illegal immigrants stranded in the desert. Five bodies were discovered on Sunday. Initial reports suggest the victims died from heat exhaustion and dehydration.

And here in Georgia, a school bus driver is hospitalized today after disappearing with several special needs children. Apparently the woman became disoriented and had gotten lost while driving the children to school. The bus was reported missing and then it was found several hours later. The children were not injured.

Back to New York now.

COLLINS: All right, Carol thanks so much for that -- glad for a happy ending there.

(WEATHER REPORT)

COLLINS: Still to come on AMERICAN MORNING what a Fed rate hike could mean to you. If rates go up, homebuyers could get squeezed thanks so very much some time this week. And they're not the only ones. We're going to look at what your money buys these days.

HEMMER: Also in a moment, could your allergy miseries be over? Let's hope so. Sanjay has the latest on what could be a shot in the arm. Back in a moment.

(COMMERCIAL BREAK)

COLLINS: Is there a potential cure all for allergy sufferers? Well, a new study shows some promising results from a seasonal allergy vaccine.

Dr. Sanjay Gupta joining us now from the CNN Center with details on this. This could be a very exciting for a lot of people who suffer during the summer at least.

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Yes, really interesting, Heidi. A lot of people have pretty significant allergies and actually get those allergy shots to try and ward off the allergies.

What happens in those situations is you get a little bit of whatever you're allergic to, so if you're allergic to pollen, for example, they actually inject you with a little bit of pollen to gradually build up your immunity.

Problem is people oftentimes get sick from the shots or they get actually allergic symptoms from the shots themselves.

So what scientists have done -- very interesting -- is they have genetically engineered a new type of vaccine, changing the allergen just a little bit and then injecting it into you and seeing if that works.

Take a look at the results of this. Pretty interesting. If you get injected with one of these genetically engineered vaccines, its much safer with even eight time the higher dose. And if you get that much higher dose, you're going to be much more effective at warding off allergies.

Also, and most importantly for people, it could prevent progression of symptoms later in life where people actually get worse from their allergies as time goes on.

Again, what we're talking about here, Heidi, is a genetically engineered vaccine against allergies. They've just tried it in birch -- so far birch is a very common allergen. But possibly could effect many more allergens as well.

COLLINS: Yes, what about that -- what about all the other types of seasonal allergens that are out there?

GUPTA: Yes, if this works in birch and appears at least in this study of about 120 people or so, that it does appear to work, you could do it for things like pet dander, pollen, all the other things that are common allergens among people. Maybe hopefully making shots at least long-term shots less necessary, Heidi.

COLLINS: You're about to make me sneeze. As far as the current types of allergy shots that are available and I hear about a lot of people taking how effective are they really?

GUPTA: Well, they are actually pretty effective. Not to be downplayed. The allergy shots that exist out there pretty significant. Take a look at some of the results of the ones -- they call it immunotherapy, and again they're involved taking a little bit of an allergen and injecting it into somebody.

Usually what you need is three to five years of monthly shots. If you do that, if you're diligent about it, about a 95 percent benefit from that. Also 25 percent cure rate from that as well. Finally about 10 percent of people relapse.

What we're talking about here, though, Heidi is a much more effective shot, fewer shots long term, and a better success rate if it's something that comes to play out.

COLLINS: Maybe they'll come up with a shot to ward off cell phones, huh?

GUPTA: I don't know whose phone that was -- it's a newsroom. There's always something going on here.

COLLINS: Dr. Sanjay Gupta -- thanks so much for that. We'll see you again soon.

Still to come this morning, if you are in the market for a house, you'll want to pay close attention to the Fed meeting today. Interest rates may be on the rise. Tell you about it coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: All right, welcome back everyone. If the Fed raises rates later today that could making buying a house less affordable. Christine Romans working for Andy Serwer "Minding Your Business."

Still historically speaking...

CHRISTINE ROMANS, FINANCIAL NEWS: Interest rates are still very, very low. Very, very low. But they're going to be going up and if you've got adjustable rate debt that means it's going to be more expensive.

Credit card debt, adjustable rate mortgages, and I wanted to just show you all you know the average price of a used home in this country is $191,000.

For us here in New York that seems like a garage or a parking space. But I want to show you -- $191,000. So we went to Cincinnati first. That's your hometown, Bill.

Want to take a look at what that could buy you in Cincinnati, the average price. This was -- this is my favorite house -- listed a marble wood-burning fireplace, nine-foot ceilings, a master suite with a wet bar and a private patio.

For the low-low price of $194,500...

HEMMER: And it is a wonderful town.

ROMANS: It is a wonderful town, and if you put 20 percent down your mortgage payment is less than $1,000 a month.

Cleveland, Ohio. Home of Andy Borowitz. Price of this house $198,500. Four bedrooms, two and a half baths, 2400 square feet. Park-like setting, fireplace, nice patio off the back.

Davenport, Iowa -- I'm actually from LeClair, but they didn't have any houses for sale in this price range. $194,900. Look at that. Three bedrooms, 2 1/2 baths, it backs up to the woods. 1800 square feet. Two fireplaces.

And Heidi's hometown of White Bear, Minnesota. Look at this cute house. $189,900, two bedrooms, one bath. It's a cottage, they call it. Very nice little thing.

COLLINS: That's near the lake.

ROMANS: It is -- very close to the lake.

And now, New York City. Where we all live. We don't know why. $195,500. Studio apartment. Folks in the rest of the country -- "studio" is not as glamorous as it sounds. It means it's that little room. That room. That's it.

HEMMER: Where do you find a place for $195,000?

ROMANS: On the Upper East Side. Well, it's one room. It's ten feet by twelve feet. I mean -- it's a closet.

COLLINS: Minnesota.

ANDY BOROWITZ, BOROWITZREPORT.COM: It's just been taken, I guarantee it.

(LAUGHTER)

ROMANS: So...

COLLINS: As you know, Jack Cafferty is off this week, so Andy Borowitz is sitting in for him. And, the Borowitz Report.

BOROWITZ: The Borowitz Report -- now -- can you name all 53 states? Well, if you're a graduate of California Alternative High School, you can.

The problem is, there are only 50 states. The chain of about 30 private schools has been ordered to stop handing out phony diplomas by the California Attorney General Bill Lockyer. The school charged immigrant students $450 for a ten-week course based on a study book that was riddled with errors.

Other mistakes include the four branches of government, including the little known administrative branch and -- look this is my favorite one -- look at --Arthur Miller's "Death of a Traveling Salesman."

(LAUGHTER)

All right, how about this: a band of determined badgers in England has archaeologists concerned about potential damage to Stonehenge. Yes.

The 5,000 year old circle is being encroached upon by these nocturnal little creatures who have already disturbed human remains and artifacts buried near the ancient site.

The Ministry of Defense in England is trying to coax them to less historic locations like, I guess, my place of birth in Cleveland, Ohio, I suppose.

The process of sending the badgers into exile has not proven to be an easy task: badger rights activists are making sure the little diggers are dealt with as humanely as possible. Let's be grateful badgers have not invaded these 53 states.

HEMMER: Amen, brother.

BOROWITZ: Yes, we've got the administrative branch on that. Right?

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

Still to come this morning, the president's pick to head the CIA; Republican Florida Congressman Porter Goss gets the nod. We'll get reaction to it in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired August 10, 2004 - 08:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Welcome back, everyone, and good morning.
If you're just joining us, the news out of Washington, the White House, the camera trained right now on the Oval Office where we anticipate any moment now for President Bush to emerge and make his announcement supporting Porter Goss, a Republican congressman out of Florida, to be the successor to George Tenet as head of the CIA.

HEIDI COLLINS, CNN ANCHOR: And good morning once again, everybody. I'm Heidi Collins in for Soledad who is awaiting the arrival of those two precious babies.

HEMMER: That she is. Yes.

As we look at the picture here in Washington -- get you back to the White House any moment now. Sixty-five years old, Porter Goss, a graduate of Yale University. Married with four children, 11 grandchildren, we're told.

He has worked for the Army intelligence in the past. Also, CIA's most well known division -- the director of operations.

When he first ran for Congress, he had to disclose at that point that he had activity with the CIA, the agency, and since that time from Florida dating back to 1997 on the House Intelligence Committee, and a strong proponent of changing the intelligence community.

To what degree we cannot define just yet, but certainly with the recommendations from the 9/11 Commission and the hearings today with Lee Hamilton and Thomas Kean on Capitol Hill, this will be front and center yet again today.

COLLINS: And Porter Goss had been mentioned a while ago when Tenet had first announced that he would be leaving, so certainly someone to be watching, and we see him coming out with the president here in just a moment.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all for coming.

I'm pleased to announce my decision to nominate Congressman Porter Goss as the next director of the Central Intelligence Agency.

Porter Goss is a leader with strong experience in intelligence and in the fight against terrorism. He knows the CIA inside and out. He's the right man to lead this important agency at this critical moment in our nation's history.

The work of the CIA is vital to our security. America faces determined enemies who plan in many nations, send trained killers to live among us, and attack without warning.

This threat is unprecedented, and to stop them from killing our citizens we must have the best intelligence possible.

The men and women of the CIA must penetrate closed societies and secretive organizations. They must overcome challenges of language and culture and learn things that our adversaries don't want us to know.

Because their work is secret, the men and women of the CIA receive little recognition, but they're protecting our country every day.

Since September 11th, our intelligence professionals have worked with great determination to stop another attack on America.

BUSH: And our country is grateful.

Director George Tenet and Acting Director John McLaughlin have served our nation with distinction and honor, and now, with the agreement of the U.S. Senate, the CIA will have another strong leader in Porter Goss.

I've given Porter an essential mission: to lead the agency for the challenges and threats of a dangerous new century. He is well- prepared for this mission. Porter Goss brings a broad experience to this critical job.

He's a former Army intelligence officer, with a decade of experience in the CIA's clandestine service. He knows the agency and he knows what's needed to strengthen it.

He understands the importance of human intelligence. He was a CIA field officer on two continents.

He'll make sure that the men and women of the CIA have the capabilities and skills they need to penetrate the hard targets in denied areas, and to get to know the enemy firsthand.

He also knows the importance of investing in technologies that allow us to look and listen better. And he will work to ensure the agency remains on the cutting edge of technological change.

BUSH: As chairman of the House Select Committee on Intelligence since 1997, and as a member of the Commission on the Roles and Capabilities of the United States Intelligence Community, he has been a leading voice on intelligence and national security and terrorism.

He's been a force for positive change.

His experience on Capitol Hill will serve him well at the CIA, because he's respected on both sides of the aisle and because he understands the important role Congress must play in the effort to improve our nation's intelligence capabilities.

Over 15 years of service, Porter Goss has built a reputation as a reformer. He'll be a reformer at the Central Intelligence Agency.

I look forward to his counsel and his judgments as to how best to implement broader intel reform, including the recommendations of the 9/11 commission.

I appreciate your many years, Porter, of service to our country. I appreciate your willingness to serve. I'm grateful that you've agreed to step forward and serve once again.

BUSH: Welcome.

REP. PORTER GOSS (R), FLORIDA: Thank you very much, Mr. President.

I'm obviously deeply honored, and I'm extremely grateful for the opportunity. You've outlined a very strong challenge.

I think every American knows the importance of the best possible intelligence we can get to our decision-makers. It is vital, as the president has well said.

What many Americans don't realize is that we've got an awful lot of people around the globe doing very, very hard work, long hours and dangerous situations.

The essence of our intelligence capability is people. And we have some wonderful Americans doing a great job.

I used to be part of them when I worked for CIA. I'm very proud to be associated with them again and I look forward to the challenges of the future.

I also look forward to the confirmation process with the Senate. As a member right now on the Hill, I know the value of that and the importance of that.

Thank you very much, Mr. President.

BUSH: Good job.

Thank you, sir.

GOSS: Thank you, sir.

HEMMER: So it is official, the news that first broke about an hour and twenty minutes ago, Porter Goss is the man pegged by the president to succeed George Tenet who left the CIA back on the 11th of July.

The president in his words today talking about Porter Goss being a leading voice on intelligence and a leading voice on terrorism.

A reputation as a reformer and the president insisting that he will be a reformer at the CIA as well.

Now Senate confirmation comes, talking with Ed Henry last hour, this is not a done deal according to some members of Congress. There will be an awful lot of talk about how the next director of the CIA takes the responsibilities that have been recommended by the 9/11 Commission.

Porter Goss, 65-years-old, first ran for the House back in 1988 out of Florida. Sixteen years, including eight years serving on the House Intelligence Committee.

Lately as the chairman of that committee. In addition to that, Porter Goss said the election of 2000 would be his last as a member of Congress, but changed his mind after the events of September 11th. So, again, Porter Goss is the one pegged by the White House.

We will see where this argument goes throughout the day today and again, eventually into the possibility of Senate confirmation.

Let's leave that behind us now and talk about Iraq this morning. U.S. forces in their sixth day of fighting with insurgents in the town of Najaf -- it has been deadly oftentimes over the past six days. Radical Shiite cleric Muqtada al-Sadr has emerged to reject demands that he and his Mehdi Army surrender.

Is al-Sadr then the question? The interim Iraqi government's biggest concern now.

Our analyst Ken Pollack is with us at Brookings Institution live with us in D.C. We were going to hear from Muqtada al-Sadr there for a moment -- didn't have it cued up -- that's OK. Ken, good morning to you.

KEN POLLACK, CNN ANALYST: Morning, Bill.

HEMMER: With the current fighting, Marines and now the Army joining that in Najaf and Ayad Allawi the very, very tough words over the past few days -- is this the best way to squeeze al-Sadr?

POLLACK: Unfortunately, it probably is, Bill. And I think that one of the things that we need to keep in mind is that it seems to be the case that the reason that we've seen this flare up in fighting is part of a fairly successful strategy on the part of the U.S. and the new Iraqi government rather than just trying to go in and bulldoze Najaf as they tried to do back in April.

They've been working a combined political and military strategy and that seems to be putting a lot more pressure on Muqtada al-Sadr that seems to be, although at this point we're relying on not very good information -- that seems to be why once again he has flared up because he saw his freedom of action being constricted and he wanted to push back on it.

HEMMER: Yes, listen; we have that sound bite now. Here's what he said recently about the current fighting.

(BEGIN VIDEO CLIP)

MUQTADA AL-SADR, MUSLIM CLERIC (through translator): I will continue with resistance and I will remain in Najaf. I will not leave. I will continue to defend Najaf, as it is the holiest place. I will remain in the city until the last drop of my blood has been spilled.

(END VIDEO CLIP)

HEMMER: There is a suggestion in all of this that this is fight to the death. Do you see it that way?

POLLACK: Well, look; you can't rule these things out. There's a long tradition of martyrdom in Shia Islam.

It is possible that Muqtada al-Sadr might choose to go that route, but we've seen him be very practical in the past and this sounds a lot more rhetorical right now than determined.

We've seen him be willing to make deals with Iraqi formations, with the U.S. in the past. My guess is that this is mostly for his people to keep their spirits up, but I think he right now is feeling very pressed and is looking for some way out of the current situation.

HEMMER: Ayad Allawi has talked very tough in the past few days, reinstating the death penalty late on Sunday night. Iraqis responded to tough leaders under dictators like Saddam Hussein. Do they still respond to tough leaders today?

POLLACK: I think they do, and I think that's one of the reasons why Allawi is taking this route and first that is Ayad's predisposition. That's the way that he feels most comfortable, so I think it is kind of natural for him to move in this route.

But one of the things that Iraqi's complained about most in the 12 to 14 months immediately after the invasion of Iraq was that the United States wasn't doing enough to keep control over the society to deal with lawlessness, to deal with the insurgents, and this is really Ayad coming in and saying to the Iraqi people -- I understand your biggest problem, your biggest problem is security, and I'm going to show you that I'm going to take the hard decisions to deal with that problem.

HEMMER: If I could, quickly, Chalabi was in Iran. If he returns to Iraq it's likely he'll be arrested.

Does he stay out of the country, A, and is this truly an in fight between Ayad Allawi and Ahmed Chalabi knowing that these two men went to school together as young men in Iraq? Is it a rivalry in the political sense?

POLLACK: There's no question that they're rivals, Bill. We saw it back when Chalabi and Allawi were both members of the Iraqi exile community and trying to work with the U.S. government to overthrow Saddam. There was a rivalry even then. In this case, I don't think it's clear whether this is a rivalry necessarily between Allawi and Chalabi -- it may be a problem between Chalabi and the judge who issued the arrest warrant.

But by the same token I think we should keep in mind Ahmed Chalabi is had charges of financial impropriety trail him everywhere he's ever been. This is now the third government that has charged financial improprieties against Ahmed Chalabi -- it may just be the case that these are true.

HEMMER: Ken thanks. Ken Pollack -- thanks for being patient. The Porter Goss news bumped you down a little bit but nice to talk to you. Thanks -- Heidi.

COLLINS: Forty-three minutes past the hour now. Time for a look at some of today's other news and Carol Costello once again. Carol, good morning.

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

The retrial of the only suspect convicted in the September 11th terror attacks began in Germany today.

A new trial was ordered in March after a judge dismissed Mounir Motassadeq's conviction on grounds that a main informant was kept from testifying. U.S. officials now say they will hand over some key information but will not allow German judges to question suspected al Qaeda prisoners.

Here in the United States, the co-chairs of the 9/11 Commission are on Capitol Hill this morning. They'll appear before the House Armed Services Committee to lobby for their recommendations to fight terrorism. The committee will meet in just over three hours.

Arizona's deadliest border crossing in three years -- authorities are calling off the search for the last member of a group of illegal immigrants stranded in the desert. Five bodies were discovered on Sunday. Initial reports suggest the victims died from heat exhaustion and dehydration.

And here in Georgia, a school bus driver is hospitalized today after disappearing with several special needs children. Apparently the woman became disoriented and had gotten lost while driving the children to school. The bus was reported missing and then it was found several hours later. The children were not injured.

Back to New York now.

COLLINS: All right, Carol thanks so much for that -- glad for a happy ending there.

(WEATHER REPORT)

COLLINS: Still to come on AMERICAN MORNING what a Fed rate hike could mean to you. If rates go up, homebuyers could get squeezed thanks so very much some time this week. And they're not the only ones. We're going to look at what your money buys these days.

HEMMER: Also in a moment, could your allergy miseries be over? Let's hope so. Sanjay has the latest on what could be a shot in the arm. Back in a moment.

(COMMERCIAL BREAK)

COLLINS: Is there a potential cure all for allergy sufferers? Well, a new study shows some promising results from a seasonal allergy vaccine.

Dr. Sanjay Gupta joining us now from the CNN Center with details on this. This could be a very exciting for a lot of people who suffer during the summer at least.

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Yes, really interesting, Heidi. A lot of people have pretty significant allergies and actually get those allergy shots to try and ward off the allergies.

What happens in those situations is you get a little bit of whatever you're allergic to, so if you're allergic to pollen, for example, they actually inject you with a little bit of pollen to gradually build up your immunity.

Problem is people oftentimes get sick from the shots or they get actually allergic symptoms from the shots themselves.

So what scientists have done -- very interesting -- is they have genetically engineered a new type of vaccine, changing the allergen just a little bit and then injecting it into you and seeing if that works.

Take a look at the results of this. Pretty interesting. If you get injected with one of these genetically engineered vaccines, its much safer with even eight time the higher dose. And if you get that much higher dose, you're going to be much more effective at warding off allergies.

Also, and most importantly for people, it could prevent progression of symptoms later in life where people actually get worse from their allergies as time goes on.

Again, what we're talking about here, Heidi, is a genetically engineered vaccine against allergies. They've just tried it in birch -- so far birch is a very common allergen. But possibly could effect many more allergens as well.

COLLINS: Yes, what about that -- what about all the other types of seasonal allergens that are out there?

GUPTA: Yes, if this works in birch and appears at least in this study of about 120 people or so, that it does appear to work, you could do it for things like pet dander, pollen, all the other things that are common allergens among people. Maybe hopefully making shots at least long-term shots less necessary, Heidi.

COLLINS: You're about to make me sneeze. As far as the current types of allergy shots that are available and I hear about a lot of people taking how effective are they really?

GUPTA: Well, they are actually pretty effective. Not to be downplayed. The allergy shots that exist out there pretty significant. Take a look at some of the results of the ones -- they call it immunotherapy, and again they're involved taking a little bit of an allergen and injecting it into somebody.

Usually what you need is three to five years of monthly shots. If you do that, if you're diligent about it, about a 95 percent benefit from that. Also 25 percent cure rate from that as well. Finally about 10 percent of people relapse.

What we're talking about here, though, Heidi is a much more effective shot, fewer shots long term, and a better success rate if it's something that comes to play out.

COLLINS: Maybe they'll come up with a shot to ward off cell phones, huh?

GUPTA: I don't know whose phone that was -- it's a newsroom. There's always something going on here.

COLLINS: Dr. Sanjay Gupta -- thanks so much for that. We'll see you again soon.

Still to come this morning, if you are in the market for a house, you'll want to pay close attention to the Fed meeting today. Interest rates may be on the rise. Tell you about it coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: All right, welcome back everyone. If the Fed raises rates later today that could making buying a house less affordable. Christine Romans working for Andy Serwer "Minding Your Business."

Still historically speaking...

CHRISTINE ROMANS, FINANCIAL NEWS: Interest rates are still very, very low. Very, very low. But they're going to be going up and if you've got adjustable rate debt that means it's going to be more expensive.

Credit card debt, adjustable rate mortgages, and I wanted to just show you all you know the average price of a used home in this country is $191,000.

For us here in New York that seems like a garage or a parking space. But I want to show you -- $191,000. So we went to Cincinnati first. That's your hometown, Bill.

Want to take a look at what that could buy you in Cincinnati, the average price. This was -- this is my favorite house -- listed a marble wood-burning fireplace, nine-foot ceilings, a master suite with a wet bar and a private patio.

For the low-low price of $194,500...

HEMMER: And it is a wonderful town.

ROMANS: It is a wonderful town, and if you put 20 percent down your mortgage payment is less than $1,000 a month.

Cleveland, Ohio. Home of Andy Borowitz. Price of this house $198,500. Four bedrooms, two and a half baths, 2400 square feet. Park-like setting, fireplace, nice patio off the back.

Davenport, Iowa -- I'm actually from LeClair, but they didn't have any houses for sale in this price range. $194,900. Look at that. Three bedrooms, 2 1/2 baths, it backs up to the woods. 1800 square feet. Two fireplaces.

And Heidi's hometown of White Bear, Minnesota. Look at this cute house. $189,900, two bedrooms, one bath. It's a cottage, they call it. Very nice little thing.

COLLINS: That's near the lake.

ROMANS: It is -- very close to the lake.

And now, New York City. Where we all live. We don't know why. $195,500. Studio apartment. Folks in the rest of the country -- "studio" is not as glamorous as it sounds. It means it's that little room. That room. That's it.

HEMMER: Where do you find a place for $195,000?

ROMANS: On the Upper East Side. Well, it's one room. It's ten feet by twelve feet. I mean -- it's a closet.

COLLINS: Minnesota.

ANDY BOROWITZ, BOROWITZREPORT.COM: It's just been taken, I guarantee it.

(LAUGHTER)

ROMANS: So...

COLLINS: As you know, Jack Cafferty is off this week, so Andy Borowitz is sitting in for him. And, the Borowitz Report.

BOROWITZ: The Borowitz Report -- now -- can you name all 53 states? Well, if you're a graduate of California Alternative High School, you can.

The problem is, there are only 50 states. The chain of about 30 private schools has been ordered to stop handing out phony diplomas by the California Attorney General Bill Lockyer. The school charged immigrant students $450 for a ten-week course based on a study book that was riddled with errors.

Other mistakes include the four branches of government, including the little known administrative branch and -- look this is my favorite one -- look at --Arthur Miller's "Death of a Traveling Salesman."

(LAUGHTER)

All right, how about this: a band of determined badgers in England has archaeologists concerned about potential damage to Stonehenge. Yes.

The 5,000 year old circle is being encroached upon by these nocturnal little creatures who have already disturbed human remains and artifacts buried near the ancient site.

The Ministry of Defense in England is trying to coax them to less historic locations like, I guess, my place of birth in Cleveland, Ohio, I suppose.

The process of sending the badgers into exile has not proven to be an easy task: badger rights activists are making sure the little diggers are dealt with as humanely as possible. Let's be grateful badgers have not invaded these 53 states.

HEMMER: Amen, brother.

BOROWITZ: Yes, we've got the administrative branch on that. Right?

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

Still to come this morning, the president's pick to head the CIA; Republican Florida Congressman Porter Goss gets the nod. We'll get reaction to it in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

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