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Intelligence Reforms; Iraqi Officials Trying to Negotiate Truce With Muqtada al-Sadr; Hurricane Charley

Aired August 17, 2004 - 11:00   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.


DARYN KAGAN, CNN ANCHOR: An Iraqi delegation has arrived in Najaf on a peace mission. Members of the Iraqi National Conference hope to broker a truce to end nearly two weeks of fighting. They plan to meet with radical Shiite cleric Muqtada al-Sadr. Members of his militia have been battling U.S. and Iraqi forces.
Keeping you informed, CNN is the most trusted name in news.

We're looking at the clock. It shows 11:00 a.m. on the East Coast, 8:00 a.m. on the West Coast, 10:00 a.m. to our folks in Chicago and the Midwest.

Good morning wherever you are. From CNN Center in Atlanta, I'm Daryn Kagan.

Up first on CNN this hour, the 9/11 Commission report through the eyes of the September 11th families, and the defense secretary weighing in on intelligence reform. Two Senate committees are holding hearings at this hour. Our congressional correspondent, Ed Henry, is on Capitol Hill with details.

Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning again, Daryn.

That's right. There are three hearings all together. There's also one in the House going on today. But as you mentioned, much of the attention on Defense Secretary Donald Rumsfeld, testifying before the Senate Armed Services Committee about the 9/11 Commission's final report.

He's joined also by acting CIA director John McLaughlin, Joint Chiefs Chairman Richard Myers, also Assistant Defense Secretary Stephen Cambone, who's in charge of intelligence matters. He will also be testifying.

Secretary Rumsfeld currently has about 85 percent of the nation's intelligence budget under his purview. And his allies want to make sure that he does not give up too much of that ground. And just a few moments ago, Secretary Rumsfeld testified to the fact that he believes Congress needs to be very careful in how it reforms the intelligence community.

(BEGIN VIDEO CLIP) DONALD RUMSFELD, DEFENSE SECRETARY: We would not want to place new barriers or filters between military combatant commanders and those agencies when they perform as combat support agencies. It would be a major step to separate these key agencies from the military combatant commanders which are the major users of such capabilities.

(END VIDEO CLIP)

HENRY: But right now at this House hearing, 9/11 Commission co- chairs Tom Kean and Lee Hamilton are once again testifying, pushing Congress to enact their 41 recommendations for reform. And, in fact, the commission co-chairs, as you know, they want this budget power to instead go to the national intelligence director, the new post that they want created. They do not want this power to rest with Secretary Rumsfeld.

Also, testimony, as you mentioned, at a Senate hearing from 9/11 families. They're also pushing. They believe that a national intelligence director should have a lot of power so that there's one person to be held accountable. A short while ago, here was testimony from Kristen Breitweiser, head of September 11th Advocates.

(BEGIN VIDEO CLIP)

KRISTEN BREITWEISER, SEPTEMBER 11TH ADVOCATES: Going forward, we must ensure that when intelligence community judgments are made, and people are killed, at a bear minimum someone in our intelligence community is held accountable. An NID would be that person.

With an NID and an NCTC established, the next time we have a terrorist organization planning against us, we will recognize the existence of that threat sooner and develop a pro-active covert action program to counter that threat before it grows to a reality. We will not suffer from instances of poor judgment that hampered our agents' abilities to stop the 9/11 hijackers.

(END VIDEO CLIP)

HENRY: Daryn, obviously a lot of acronyms in Washington. She mentioned NID. That is the term being thrown around for the national intelligence director. Also, the NCTC, that would be the national counterterrorism center. Those are two of the key proposals that have been put forth out of the 41 recommendations from the 9/11 Commission -- Daryn.

KAGAN: Ed, I'm not going to try to stump you with my Ed Henry question by asking you just how many of these hearings have been taking place, because I don't know if it's possible to count. But...

HENRY: By the end of the week, there will be 20, by our account.

KAGAN: How about that. All right. Well, you answered that one. The next question is, how many -- how many more committee hearings until they do something?

HENRY: Well, the bottom line is what Republican leaders on Capitol Hill are saying is that they want to hold some more hearings right now on the eve of the Republican National Convention because they want to get as much discussion in, as much debate as possible. While Democrats are pushing harder for action, as you mentioned, saying that it's time to actually bring up legislation, what Republicans are pointing out is that, with such important issues at stake here, with people like Defense Secretary Donald Rumsfeld saying, wait a second, maybe the Pentagon should keep some of this budget authority, Republicans want to make sure that they cover all of this ground. And they say right after the Republican National Convention, at the beginning of September, when Congress comes back at full strength, they will actually pass a reform package and then put it -- try to send it to the president's desk.

Others are saying it will not be able to get done that quickly. Some, in fact, are saying there will need to be a lame duck session of Congress right after the election in order to finish the 9/11 Commission's recommendations -- Daryn.

KAGAN: Ed Henry on Capitol Hill. Thank you, Ed.

HENRY: Thank you.

KAGAN: A delegation of Iraqi officials is in Najaf this morning trying to negotiate a truce with Shiite cleric Muqtada al-Sadr. Al- Sadr's militiamen have been battling U.S. and Iraqi forces for about two weeks now. Our John Vause is following the latest developments in Baghdad.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: Eight delegates from this national conference are now on the grounded in Najaf, holding negotiations to try and end two weeks of fighting. The troop was delayed for several hours because authorities here say they had information that militants had planned to ambush the delegation on the road from Baghdad to Najaf.

The fighting there and the diplomatic efforts here have delayed the original purpose of this conference, to elect a 100-person interim council to advise the Iraqi interim government for the next six months before national elections next year. Organizers here say that hope will be held when the Najaf delegation returns. It could well be a long night.

Meantime, a mortar attack in central Baghdad has left at least seven people dead, more than 40 wounded. Authorities say the target may have been a police station. The blast so powerful it damaged a residential building, destroying seven cars. It happened in Rasheed Street, an old and busy part of the central part of the city.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

KAGAN: News here in the states the man at the center of New Jersey governor's scandal returned home to Israel today to a crush (ph) of media. Golan Cipel told reporters he has had a very difficult time and wanted to spend time with his family. Cipel's attorney appeared on CNN earlier today, denying that there was a gay affair, claiming his client is actually straight, and says he said there was an assault and sexual harassment by Governor James McGreevey.

(BEGIN VIDEO CLIP)

ALLEN LOWY, GOLAN CIPEL'S ATTORNEY: The harassment did not take place eight months prior to August 2002. It began during the transition period when the governor was elected, and continued through, you know, the summer of August 2002, when my client was forced to resign.

The reason he was forced to resign was because he couldn't take it anymore. And he confronted the governor and said, "This has got to stop."

(END VIDEO CLIP)

KAGAN: McGreevey says he'll resign the governorship effective November 15 due to a homosexual affair. However, he has not publicly named Cipel as the lover involved.

And now to Florida and the painstaking process of recovering from Hurricane Charley. The death toll has risen to 19, and officials are not sure how many people are still unaccounted for. More than 750,000 are still without electricity this morning. But the governor says the state is making progress, and he is praising those on the front lines.

(BEGIN VIDEO CLIP)

GOV. JEB BUSH (R), FLORIDA: I want to thank everybody that has been working at the local, state and federal government level, as well as literally thousands of volunteers to help people in their time of need. A lot of people that I've met and my colleagues in state government have met in the last few days that are doing that have lost their own homes and have families in shelters. And this is a time where we need to pay tribute to the first responders to these disasters. And they're doing extraordinary work.

(END VIDEO CLIP)

KAGAN: Insured losses from Hurricane Charley could reach $14 billion, according to new estimates. Officials say 11,000 people have already applied for federal disaster assistance.

Coastal communities and exclusive beach resorts were devastated by Hurricane Charley, but the storm also tore through Florida's heartland, striking towns far away from the shore and out of the headlines. Our Ed Lavandera reports on how the town of Arcadia is coping with Charley's aftermath.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice over): Take Highway 17 east away from Florida's Gulf Coast and planted among the orange groves you'll drive into the working-class town of Arcadia. It's 30 miles from the seafront towns that have been getting all of the attention in the wake of Hurricane Charley. But to people here, it might as well be a million miles away.

JANET WYATT, ARCADIA RESIDENT: The fact of life is, Arcadia in Desoto County is a backwater, and it doesn't matter who is hardest hit. We're going to get power well after the coastal towns. You know that when you move here.

LAVANDERA: Arcadia is a town of about 7,000 people, but also home to thousands of migrant workers who live off the seasonal citrus industry.

REV. GREG FRY, ST. EDMUNDS EPISCOPAL CHURCH: Everybody here in Arcadia who really make a living from hand-to-mouth, they're going to be hurting for a long time. And they're not going to get the attention that some of the other places will be getting.

LAVANDERA: That's why Janet Wyatt takes care of those around her, covering a window for an elderly man who struggles to take care of himself. And it's why Reverend Greg Fry wants to get the roof that was ripped off his church repaired quickly. He thinks it will give people around here something to smile about.

FRY: At this point in time, the reality if it, the shock of it hasn't worn off yet. We still have folks literally walking around in a daze. I pulled on it, and it actually rang.

LAVANDERA: The bell in Saint Edmonds Episcopal Church still tolls. For a city that feels when it comes to getting through a tragedy, its people can always count on each other to help them make it through.

(on camera): The initial wave of help has already rolled into Arcadia. But what the residents in the town want people to remember is that their cleanup process will take just as long as the cleanup process on the coast.

Ed Lavandera, CNN, Punta Gorda, Florida.

(END VIDEOTAPE)

KAGAN: We're going to head to the other coast, the West Coast, and check in on the Michael Jackson case. The King of Pop hears from the man who filed child molestation charges against him. A live report from California is just away.

Also, the "Princeton Review's" annual list is out on the nation's best universities and colleges. See if you agree with who they pick.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He's one of the few figures in America that literally knows his nuts. (END VIDEO CLIP)

KAGAN: Ha, funny, funny. Mr. Peanut versus Mr. Clean. They're among 26 candidates who want your vote. We'll tell you how -- tell you more about the battle to be the top advertising icon.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: Let's take a look at what is on the docket today in our look at legal briefs. Jurors in Scott Peterson's double murder trial today will get to hear more phone conversations secretly recorded by his former mistress, Amber Frey. Defense attorneys are expected to begin cross-examination of Frey by late this afternoon.

Another setback for the prosecution in the Kobe Bryant sexual assault case. The Colorado Supreme Court refused to overturn a judge's decision to let jurors hear about the accuser's sex life. Speculation is rampant that prosecutors might drop the case. Bryant's final pretrial hearing concluded Monday, with the trial set to start on August 27.

A critical hearing in the criminal case against pop star Michael Jackson resumes in two hours. Our correspondent, Miguel Marquez, is at the courthouse in Santa Maria, California.

Miguel, good morning.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Good morning to you, Daryn.

And even though the trial is still months away, end of January, the heavy legal lifting has already begun. This is a showdown, billed as a showdown, and it was certainly that.

Michael Jackson arrived here clad in white, along with several of his brothers and sisters, all of them wearing white. The imagery of that could not be sort of mistaken with the prosecutors arriving in dark suits, of course, sort of a western sort of theme, I suppose.

The questioning and the real showdown came in court as Thomas Mesereau Jr., Jackson's attorney, questioned Tom Sneddon, the district attorney who is prosecuting Jackson. The question was pointed and at times sarcastic, even combative between the two. Jackson the entire time stared at Sneddon through sunglasses.

The central question that Jackson's lawyers are trying to get to, did investigators, and specifically Tom Sneddon, know that private investigator Bradley Miller worked for Mark Geragos, Jackson's former attorney, before they searched Miller's office? Now, if they can prove that point, then all the evidence investigators seized from Miller's office could be off limits to the district attorney as he tries to build his case against Jackson. Now, one former prosecutor I talked to, and now a criminal defense attorney, says that it's his belief that Jackson's attorneys have made some headway on that point.

(BEGIN VIDEO CLIP)

JOHN BURRIS, DEFENSE ATTORNEY: I would think from the court's point of view that the prosecution clearly either knew or should have known, and there's some indications that they did know. That being the case, I think the court is going to be in a pretty good position with -- unless there's other evidence that contradicts it, that this evidence should be excluded.

(END VIDEO CLIP)

MARQUEZ: Now, the sheriff's investigator will be back on the stand today. This hearing is expected to last all week. And at the end of it, the judge will have to take everything into account and decide probably in the weeks ahead whether or not all that evidence will allowed to be heard by a jury -- Daryn.

KAGAN: OK. Miguel Marquez, in Santa Maria, thank you.

Let's get a better look at the Michael Jackson and Kobe Bryant defense teams and what they're doing. And let's bring in Harvey Levin, executive producer of "Celebrity Justice."

Harvey, two days in a row. Good for us.

HARVEY LEVIN, EXECUTIVE PRODUCER, "CELEBRITY JUSTICE": Hi, Daryn.

KAGAN: Let's start with the Michael Jackson case. First, the spectacle of it. Michael Jackson and his family all dressed in white, staring down Tom Sneddon on the witness stand.

LEVIN: Well, you know, if -- if you just had a casual glimpse of this, it kind of looks like a cheesy wedding party. But, you know, the reality is, is there's symbolism here. And the symbolism is that Michael Jackson has the white hat on, the -- he is the -- he is the victim, not the villain.

He's saying Tom Sneddon is not a prosecutor, Tom Sneddon is a persecutor. And what he's trying to show is, hey, he crossed that line, he scoped out this private investigator's office himself. He knew that there was a work product attorney-client relationship here. And nonetheless, he still when in the.

That's Michael Jackson's position. He wanted to see Tom Sneddon as the bad guy in court to project this to the potential jurors.

KAGAN: Now, Tom Sneddon has been the D.A. in Santa Barbara County a zillion years. He was the D.A. when I was working in Santa Barbara a zillion years ago. He's been around a long time. He's got to know the rules. Do you think that he messed up here?

LEVIN: Well, you know what? It's not as clear. I disagree with the lawyer who you had on a little bit earlier. It's not as clear that this evidence will not be admissible. There was a check that went directly from Michael Jackson to this private investigator. And Sneddon is saying, look, there was a check. And I assume since Jackson's paying him that Geragos had nothing to do with it.

And Sneddon is also saying what happened here is really evil. That's Sneddon's opinion. And I would never assume that a lawyer is in on something like that.

There are exceptions to the law. Without getting too technical, I'm not so sure the judge is going to disallow it. But the other thing you have to remember is, the big thing here is, there's a videotape in the private investigator's office where this boy and his mother said nothing untoward happened between -- between the boy and Michael Jackson.

Well, guess what? Even if the prosecutor can't put that evidence in, the defense is going to put it in, because it helps prove their case. So I think either way, this tape is getting in. And this is a bunch of nothing, except for the symbolism. And the symbolism is important.

KAGAN: OK. Kobe Bryant. Ten days from today, this trial is supposed to begin in Eagle, Colorado. Is that going to happen?

LEVIN: My gut is that it is not going to happen. We have been talking to people in Eagle for the last 24 hours, and I can tell you, about a week and a half ago, they were actually talking about a plea bargain in this case. All of that...

KAGAN: Why would Kobe Bryant plea bargain in this?

LEVIN: Because when it looked like this woman was still going to press on, Kobe Bryant could have pled to a non-sex crime because we know they have privately gone into the judge and asked if the judge would accept such a plea. They were talking about it, but it all fell apart. It would have been a misdemeanor, he would have gotten probation and gotten on with his life. Now it's all fallen apart.

My gut is that since we are hearing this woman does not want to have anything to do with the case, and the D.A. is up for re-election in November, my gut is politicians tend to drop cases on Fridays and not Mondays. And I think this case is going to be dropped later this week. It is a loser for the prosecution.

KAGAN: OK. We'll be watching it. And love to have you back another day and talk about how this court has handled this case and what this means to potential rape victims across the country.

LEVIN: It's an amazing story, absolutely.

KAGAN: It's just another -- it's a whole other topic. We can't get into it now. But fascinating stuff. Harvey...

LEVIN: Good talking to you, Daryn.

KAGAN: Yes. Harvey Levin from "Celebrity Justice." Thank you, Harvey.

Will Death Valley live up to its name? After the break we will tell you about a deadly flood at the famous national park.

Could a neighboring country be supporting the Islamic cleric at the center of the trouble in Najaf? The evidence for and against Iran's possible involvement is still to come.

And if you have allergies, there might soon be another treatment for you. Find out how it's different a little bit later this hour.

(COMMERCIAL BREAK)

KAGAN: We're not looking at Florida. It's not the only state to be slammed by deadly storms this week. Death Valley, California, is closed to visitors after an extremely rare and intense thunderstorm hit the Mojave Desert on Sunday, causing flash floods that killed at least two people and cut off power all over the park. Officials say they're still trying to account for all the visitors who were in the park at the time of the storm.

Death Valley, Jacqui, is usually one of the driest places in California.

(WEATHER REPORT)

KAGAN: All right, Jacqui.

Still ahead, some pretty shocking name calling brings the presidential race to a whole new level. Candy Crowley will join us for a look at the latest fighting words in the race for the White House.

Plus, you don't have to bury yourself in overwhelming debt to get a college degree. After the break, we're going to tell you which are the best bargains when it comes to higher education.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's check what's happening right now in the news. It is Tuesday, August 17.

Defense Secretary Donald Rumsfeld is before Congress this hour, discussing the proposed new post of national intelligence director. The 9/11 Commission urged its creation, and President Bush endorsed one form of that. Rumsfeld could lose control of a vast range of intelligence agencies now under Pentagon control if the new director is named.

Homeland Security Secretary Tom Ridge will get a look at hurricane relief efforts in Florida this afternoon. The death toll from Charley is now up to 19. Dozens of people are missing. Crews say it will take several weeks to search through all of the debris.

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


Aired August 17, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: An Iraqi delegation has arrived in Najaf on a peace mission. Members of the Iraqi National Conference hope to broker a truce to end nearly two weeks of fighting. They plan to meet with radical Shiite cleric Muqtada al-Sadr. Members of his militia have been battling U.S. and Iraqi forces.
Keeping you informed, CNN is the most trusted name in news.

We're looking at the clock. It shows 11:00 a.m. on the East Coast, 8:00 a.m. on the West Coast, 10:00 a.m. to our folks in Chicago and the Midwest.

Good morning wherever you are. From CNN Center in Atlanta, I'm Daryn Kagan.

Up first on CNN this hour, the 9/11 Commission report through the eyes of the September 11th families, and the defense secretary weighing in on intelligence reform. Two Senate committees are holding hearings at this hour. Our congressional correspondent, Ed Henry, is on Capitol Hill with details.

Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning again, Daryn.

That's right. There are three hearings all together. There's also one in the House going on today. But as you mentioned, much of the attention on Defense Secretary Donald Rumsfeld, testifying before the Senate Armed Services Committee about the 9/11 Commission's final report.

He's joined also by acting CIA director John McLaughlin, Joint Chiefs Chairman Richard Myers, also Assistant Defense Secretary Stephen Cambone, who's in charge of intelligence matters. He will also be testifying.

Secretary Rumsfeld currently has about 85 percent of the nation's intelligence budget under his purview. And his allies want to make sure that he does not give up too much of that ground. And just a few moments ago, Secretary Rumsfeld testified to the fact that he believes Congress needs to be very careful in how it reforms the intelligence community.

(BEGIN VIDEO CLIP) DONALD RUMSFELD, DEFENSE SECRETARY: We would not want to place new barriers or filters between military combatant commanders and those agencies when they perform as combat support agencies. It would be a major step to separate these key agencies from the military combatant commanders which are the major users of such capabilities.

(END VIDEO CLIP)

HENRY: But right now at this House hearing, 9/11 Commission co- chairs Tom Kean and Lee Hamilton are once again testifying, pushing Congress to enact their 41 recommendations for reform. And, in fact, the commission co-chairs, as you know, they want this budget power to instead go to the national intelligence director, the new post that they want created. They do not want this power to rest with Secretary Rumsfeld.

Also, testimony, as you mentioned, at a Senate hearing from 9/11 families. They're also pushing. They believe that a national intelligence director should have a lot of power so that there's one person to be held accountable. A short while ago, here was testimony from Kristen Breitweiser, head of September 11th Advocates.

(BEGIN VIDEO CLIP)

KRISTEN BREITWEISER, SEPTEMBER 11TH ADVOCATES: Going forward, we must ensure that when intelligence community judgments are made, and people are killed, at a bear minimum someone in our intelligence community is held accountable. An NID would be that person.

With an NID and an NCTC established, the next time we have a terrorist organization planning against us, we will recognize the existence of that threat sooner and develop a pro-active covert action program to counter that threat before it grows to a reality. We will not suffer from instances of poor judgment that hampered our agents' abilities to stop the 9/11 hijackers.

(END VIDEO CLIP)

HENRY: Daryn, obviously a lot of acronyms in Washington. She mentioned NID. That is the term being thrown around for the national intelligence director. Also, the NCTC, that would be the national counterterrorism center. Those are two of the key proposals that have been put forth out of the 41 recommendations from the 9/11 Commission -- Daryn.

KAGAN: Ed, I'm not going to try to stump you with my Ed Henry question by asking you just how many of these hearings have been taking place, because I don't know if it's possible to count. But...

HENRY: By the end of the week, there will be 20, by our account.

KAGAN: How about that. All right. Well, you answered that one. The next question is, how many -- how many more committee hearings until they do something?

HENRY: Well, the bottom line is what Republican leaders on Capitol Hill are saying is that they want to hold some more hearings right now on the eve of the Republican National Convention because they want to get as much discussion in, as much debate as possible. While Democrats are pushing harder for action, as you mentioned, saying that it's time to actually bring up legislation, what Republicans are pointing out is that, with such important issues at stake here, with people like Defense Secretary Donald Rumsfeld saying, wait a second, maybe the Pentagon should keep some of this budget authority, Republicans want to make sure that they cover all of this ground. And they say right after the Republican National Convention, at the beginning of September, when Congress comes back at full strength, they will actually pass a reform package and then put it -- try to send it to the president's desk.

Others are saying it will not be able to get done that quickly. Some, in fact, are saying there will need to be a lame duck session of Congress right after the election in order to finish the 9/11 Commission's recommendations -- Daryn.

KAGAN: Ed Henry on Capitol Hill. Thank you, Ed.

HENRY: Thank you.

KAGAN: A delegation of Iraqi officials is in Najaf this morning trying to negotiate a truce with Shiite cleric Muqtada al-Sadr. Al- Sadr's militiamen have been battling U.S. and Iraqi forces for about two weeks now. Our John Vause is following the latest developments in Baghdad.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: Eight delegates from this national conference are now on the grounded in Najaf, holding negotiations to try and end two weeks of fighting. The troop was delayed for several hours because authorities here say they had information that militants had planned to ambush the delegation on the road from Baghdad to Najaf.

The fighting there and the diplomatic efforts here have delayed the original purpose of this conference, to elect a 100-person interim council to advise the Iraqi interim government for the next six months before national elections next year. Organizers here say that hope will be held when the Najaf delegation returns. It could well be a long night.

Meantime, a mortar attack in central Baghdad has left at least seven people dead, more than 40 wounded. Authorities say the target may have been a police station. The blast so powerful it damaged a residential building, destroying seven cars. It happened in Rasheed Street, an old and busy part of the central part of the city.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

KAGAN: News here in the states the man at the center of New Jersey governor's scandal returned home to Israel today to a crush (ph) of media. Golan Cipel told reporters he has had a very difficult time and wanted to spend time with his family. Cipel's attorney appeared on CNN earlier today, denying that there was a gay affair, claiming his client is actually straight, and says he said there was an assault and sexual harassment by Governor James McGreevey.

(BEGIN VIDEO CLIP)

ALLEN LOWY, GOLAN CIPEL'S ATTORNEY: The harassment did not take place eight months prior to August 2002. It began during the transition period when the governor was elected, and continued through, you know, the summer of August 2002, when my client was forced to resign.

The reason he was forced to resign was because he couldn't take it anymore. And he confronted the governor and said, "This has got to stop."

(END VIDEO CLIP)

KAGAN: McGreevey says he'll resign the governorship effective November 15 due to a homosexual affair. However, he has not publicly named Cipel as the lover involved.

And now to Florida and the painstaking process of recovering from Hurricane Charley. The death toll has risen to 19, and officials are not sure how many people are still unaccounted for. More than 750,000 are still without electricity this morning. But the governor says the state is making progress, and he is praising those on the front lines.

(BEGIN VIDEO CLIP)

GOV. JEB BUSH (R), FLORIDA: I want to thank everybody that has been working at the local, state and federal government level, as well as literally thousands of volunteers to help people in their time of need. A lot of people that I've met and my colleagues in state government have met in the last few days that are doing that have lost their own homes and have families in shelters. And this is a time where we need to pay tribute to the first responders to these disasters. And they're doing extraordinary work.

(END VIDEO CLIP)

KAGAN: Insured losses from Hurricane Charley could reach $14 billion, according to new estimates. Officials say 11,000 people have already applied for federal disaster assistance.

Coastal communities and exclusive beach resorts were devastated by Hurricane Charley, but the storm also tore through Florida's heartland, striking towns far away from the shore and out of the headlines. Our Ed Lavandera reports on how the town of Arcadia is coping with Charley's aftermath.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice over): Take Highway 17 east away from Florida's Gulf Coast and planted among the orange groves you'll drive into the working-class town of Arcadia. It's 30 miles from the seafront towns that have been getting all of the attention in the wake of Hurricane Charley. But to people here, it might as well be a million miles away.

JANET WYATT, ARCADIA RESIDENT: The fact of life is, Arcadia in Desoto County is a backwater, and it doesn't matter who is hardest hit. We're going to get power well after the coastal towns. You know that when you move here.

LAVANDERA: Arcadia is a town of about 7,000 people, but also home to thousands of migrant workers who live off the seasonal citrus industry.

REV. GREG FRY, ST. EDMUNDS EPISCOPAL CHURCH: Everybody here in Arcadia who really make a living from hand-to-mouth, they're going to be hurting for a long time. And they're not going to get the attention that some of the other places will be getting.

LAVANDERA: That's why Janet Wyatt takes care of those around her, covering a window for an elderly man who struggles to take care of himself. And it's why Reverend Greg Fry wants to get the roof that was ripped off his church repaired quickly. He thinks it will give people around here something to smile about.

FRY: At this point in time, the reality if it, the shock of it hasn't worn off yet. We still have folks literally walking around in a daze. I pulled on it, and it actually rang.

LAVANDERA: The bell in Saint Edmonds Episcopal Church still tolls. For a city that feels when it comes to getting through a tragedy, its people can always count on each other to help them make it through.

(on camera): The initial wave of help has already rolled into Arcadia. But what the residents in the town want people to remember is that their cleanup process will take just as long as the cleanup process on the coast.

Ed Lavandera, CNN, Punta Gorda, Florida.

(END VIDEOTAPE)

KAGAN: We're going to head to the other coast, the West Coast, and check in on the Michael Jackson case. The King of Pop hears from the man who filed child molestation charges against him. A live report from California is just away.

Also, the "Princeton Review's" annual list is out on the nation's best universities and colleges. See if you agree with who they pick.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: He's one of the few figures in America that literally knows his nuts. (END VIDEO CLIP)

KAGAN: Ha, funny, funny. Mr. Peanut versus Mr. Clean. They're among 26 candidates who want your vote. We'll tell you how -- tell you more about the battle to be the top advertising icon.

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KAGAN: Let's take a look at what is on the docket today in our look at legal briefs. Jurors in Scott Peterson's double murder trial today will get to hear more phone conversations secretly recorded by his former mistress, Amber Frey. Defense attorneys are expected to begin cross-examination of Frey by late this afternoon.

Another setback for the prosecution in the Kobe Bryant sexual assault case. The Colorado Supreme Court refused to overturn a judge's decision to let jurors hear about the accuser's sex life. Speculation is rampant that prosecutors might drop the case. Bryant's final pretrial hearing concluded Monday, with the trial set to start on August 27.

A critical hearing in the criminal case against pop star Michael Jackson resumes in two hours. Our correspondent, Miguel Marquez, is at the courthouse in Santa Maria, California.

Miguel, good morning.

MIGUEL MARQUEZ, CNN CORRESPONDENT: Good morning to you, Daryn.

And even though the trial is still months away, end of January, the heavy legal lifting has already begun. This is a showdown, billed as a showdown, and it was certainly that.

Michael Jackson arrived here clad in white, along with several of his brothers and sisters, all of them wearing white. The imagery of that could not be sort of mistaken with the prosecutors arriving in dark suits, of course, sort of a western sort of theme, I suppose.

The questioning and the real showdown came in court as Thomas Mesereau Jr., Jackson's attorney, questioned Tom Sneddon, the district attorney who is prosecuting Jackson. The question was pointed and at times sarcastic, even combative between the two. Jackson the entire time stared at Sneddon through sunglasses.

The central question that Jackson's lawyers are trying to get to, did investigators, and specifically Tom Sneddon, know that private investigator Bradley Miller worked for Mark Geragos, Jackson's former attorney, before they searched Miller's office? Now, if they can prove that point, then all the evidence investigators seized from Miller's office could be off limits to the district attorney as he tries to build his case against Jackson. Now, one former prosecutor I talked to, and now a criminal defense attorney, says that it's his belief that Jackson's attorneys have made some headway on that point.

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JOHN BURRIS, DEFENSE ATTORNEY: I would think from the court's point of view that the prosecution clearly either knew or should have known, and there's some indications that they did know. That being the case, I think the court is going to be in a pretty good position with -- unless there's other evidence that contradicts it, that this evidence should be excluded.

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MARQUEZ: Now, the sheriff's investigator will be back on the stand today. This hearing is expected to last all week. And at the end of it, the judge will have to take everything into account and decide probably in the weeks ahead whether or not all that evidence will allowed to be heard by a jury -- Daryn.

KAGAN: OK. Miguel Marquez, in Santa Maria, thank you.

Let's get a better look at the Michael Jackson and Kobe Bryant defense teams and what they're doing. And let's bring in Harvey Levin, executive producer of "Celebrity Justice."

Harvey, two days in a row. Good for us.

HARVEY LEVIN, EXECUTIVE PRODUCER, "CELEBRITY JUSTICE": Hi, Daryn.

KAGAN: Let's start with the Michael Jackson case. First, the spectacle of it. Michael Jackson and his family all dressed in white, staring down Tom Sneddon on the witness stand.

LEVIN: Well, you know, if -- if you just had a casual glimpse of this, it kind of looks like a cheesy wedding party. But, you know, the reality is, is there's symbolism here. And the symbolism is that Michael Jackson has the white hat on, the -- he is the -- he is the victim, not the villain.

He's saying Tom Sneddon is not a prosecutor, Tom Sneddon is a persecutor. And what he's trying to show is, hey, he crossed that line, he scoped out this private investigator's office himself. He knew that there was a work product attorney-client relationship here. And nonetheless, he still when in the.

That's Michael Jackson's position. He wanted to see Tom Sneddon as the bad guy in court to project this to the potential jurors.

KAGAN: Now, Tom Sneddon has been the D.A. in Santa Barbara County a zillion years. He was the D.A. when I was working in Santa Barbara a zillion years ago. He's been around a long time. He's got to know the rules. Do you think that he messed up here?

LEVIN: Well, you know what? It's not as clear. I disagree with the lawyer who you had on a little bit earlier. It's not as clear that this evidence will not be admissible. There was a check that went directly from Michael Jackson to this private investigator. And Sneddon is saying, look, there was a check. And I assume since Jackson's paying him that Geragos had nothing to do with it.

And Sneddon is also saying what happened here is really evil. That's Sneddon's opinion. And I would never assume that a lawyer is in on something like that.

There are exceptions to the law. Without getting too technical, I'm not so sure the judge is going to disallow it. But the other thing you have to remember is, the big thing here is, there's a videotape in the private investigator's office where this boy and his mother said nothing untoward happened between -- between the boy and Michael Jackson.

Well, guess what? Even if the prosecutor can't put that evidence in, the defense is going to put it in, because it helps prove their case. So I think either way, this tape is getting in. And this is a bunch of nothing, except for the symbolism. And the symbolism is important.

KAGAN: OK. Kobe Bryant. Ten days from today, this trial is supposed to begin in Eagle, Colorado. Is that going to happen?

LEVIN: My gut is that it is not going to happen. We have been talking to people in Eagle for the last 24 hours, and I can tell you, about a week and a half ago, they were actually talking about a plea bargain in this case. All of that...

KAGAN: Why would Kobe Bryant plea bargain in this?

LEVIN: Because when it looked like this woman was still going to press on, Kobe Bryant could have pled to a non-sex crime because we know they have privately gone into the judge and asked if the judge would accept such a plea. They were talking about it, but it all fell apart. It would have been a misdemeanor, he would have gotten probation and gotten on with his life. Now it's all fallen apart.

My gut is that since we are hearing this woman does not want to have anything to do with the case, and the D.A. is up for re-election in November, my gut is politicians tend to drop cases on Fridays and not Mondays. And I think this case is going to be dropped later this week. It is a loser for the prosecution.

KAGAN: OK. We'll be watching it. And love to have you back another day and talk about how this court has handled this case and what this means to potential rape victims across the country.

LEVIN: It's an amazing story, absolutely.

KAGAN: It's just another -- it's a whole other topic. We can't get into it now. But fascinating stuff. Harvey...

LEVIN: Good talking to you, Daryn.

KAGAN: Yes. Harvey Levin from "Celebrity Justice." Thank you, Harvey.

Will Death Valley live up to its name? After the break we will tell you about a deadly flood at the famous national park.

Could a neighboring country be supporting the Islamic cleric at the center of the trouble in Najaf? The evidence for and against Iran's possible involvement is still to come.

And if you have allergies, there might soon be another treatment for you. Find out how it's different a little bit later this hour.

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KAGAN: We're not looking at Florida. It's not the only state to be slammed by deadly storms this week. Death Valley, California, is closed to visitors after an extremely rare and intense thunderstorm hit the Mojave Desert on Sunday, causing flash floods that killed at least two people and cut off power all over the park. Officials say they're still trying to account for all the visitors who were in the park at the time of the storm.

Death Valley, Jacqui, is usually one of the driest places in California.

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KAGAN: All right, Jacqui.

Still ahead, some pretty shocking name calling brings the presidential race to a whole new level. Candy Crowley will join us for a look at the latest fighting words in the race for the White House.

Plus, you don't have to bury yourself in overwhelming debt to get a college degree. After the break, we're going to tell you which are the best bargains when it comes to higher education.

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KAGAN: I'm Daryn Kagan in Atlanta. Let's check what's happening right now in the news. It is Tuesday, August 17.

Defense Secretary Donald Rumsfeld is before Congress this hour, discussing the proposed new post of national intelligence director. The 9/11 Commission urged its creation, and President Bush endorsed one form of that. Rumsfeld could lose control of a vast range of intelligence agencies now under Pentagon control if the new director is named.

Homeland Security Secretary Tom Ridge will get a look at hurricane relief efforts in Florida this afternoon. The death toll from Charley is now up to 19. Dozens of people are missing. Crews say it will take several weeks to search through all of the debris.

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