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American Morning

Intelligence Chair Proposes Sweeping CIA Changes; Kerry Ad Denounces Smear Campaign

Aired August 23, 2004 - 08:00   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, CO-HOST: Is it the end of the CIA? A sweeping proposal by a key Senate Republican catches Washington by surprise.
Potential for a surprise in the Scott Peterson trial as Amber Frey prepares to be cross-examined by the defense.

And living to 100. Following the formula for a very long life on this AMERICAN MORNING.

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

KAGAN: And good morning. I'm Daryn Kagan in for Soledad. And the babies are not here yet.

BILL HEMMER, CO-HOST: They're not here yet. Still watching the calendar. Good to have you in New York, Daryn.

KAGAN: Good to see you here, Billy.

HEMMER: Coming up this hour, after all the back and forth over these political ads run against John Kerry, criticizing his Vietnam War record, the big question now is have they damaged his campaign? Bill Schneider is back with us today answering just that question in a moment here.

KAGAN: Also, could a poem help crack the terrifying case of the BTK serial killer in Wichita, Kansas? We'll take a look at a new clue and where it's leading investigators.

HEMMER: Also, the story from over the weekend. We'll find out what police are learning today as they try to track down the thieves who stole the famous painting "The Scream" from a museum in Norway. It is on the loose.

KAGAN: In broad daylight.

HEMMER: With security guards all over the place, and they still got it and clipped the wires. So we'll check that out this morning.

Good morning, Jack.

JACK CAFFERTY, CO-HOST: That's the biggest thing that's happened in Norway in 50 years. You know that?

KAGAN: Actually in 10 years. CAFFERTY: Somebody swiped a painting.

KAGAN: They stole it -- they stole a painting from the same museum 10 years ago.

CAFFERTY: Damn. Serial thief at work over there.

Coming up in "The Cafferty File," we'll tell you about a 105- pound woman who ate 10 percent of her body weight in lobster meat in something like nine minutes. It's pretty disgusting, actually.

And an avant garde theater director who gave audience members a big surprise when they jeered his opera. He had a little something for them.

HEMMER: All right, Jack. Thanks for that.

A check of the top stories as we start the new hour. Here's Carol -- Carol Costello.

Good morning, Carol, on a Monday.

CAROL COSTELLO, ANCHOR: You're still reeling from Jack's comments there. I want to know what that guy did. Thank you, Bill.

New fighting this morning being reported in Najaf. Thick smoke rose around the area near the Imam Ali mosque. A spokesman for the radical cleric Muqtada al-Sadr says American aircraft pounded militia postings around the site. The U.S. military has not confirmed that report, and it's not clear if there were any injuries at all.

A delay in the trial of three American accused of abusing prisoners in Afghanistan. The group is accused of torturing civilians at a private prison. A verdict had been expected today, but a judge adjourned the court for a week to allow one of the defendants to retain a lawyer. If convicted, the suspects face up to 20 years in prison.

A military hearing began today for four U.S. soldiers charged in the Iraqi prisoner abuse scandal. Two days of preliminary hearings began today at a U.S. Army base in Manheim, Germany. The proceedings were moved out of Baghdad for safety concerns expressed by the defense. A total of seven Army reservists are accused in that case.

In Athens, a Russian shot-putter has been stripped of her gold medal and sent home. Irina Korzhanenko is the latest athlete to test positive for steroids and the first to be stripped of an Olympic title. That gold medal now goes to Cuba.

Back to New York and Bill.

HEMMER: All right, Carol. Thanks for that.

There's a proposal for a vastly different American intelligence service now laid on the table. Ed Henry is live on Capitol Hill today. Ed, good morning to you.

ED HENRY, CNN CORRESPONDENT: Good morning to you, Bill.

There's been a lot of talk this summer in Washington about reform. But the first one out of the box with a plan, a real radical plan almost, is Senate intelligence chairman Pat Roberts.

And in fact, his plan is bolder than even the 9/11 Commission laid out in its blueprint. This is going to ruffle a lot of feathers.

First and foremost at the CIA, which will be broken into pieces. All that will be left will be three different parts: an Office of National Clandestine Service that would deal with human spying, an Office of National Assessment to assess all of the information coming in and an Office of Technical Support to deal with research and development.

Now what it would be replaced with and what these parts would actually end up reporting to is a national intelligence director, full budget authority, all of the powers that some people in Washington have been pushing for and, in fact, Senator Roberts said this plan has to be aggressive. He said a half measure will not do.

(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R-KS), CHAIRMAN, SENATE INTELLIGENCE COMMITTEE: We can't afford in this country now to go the 39th time. So this is real reform. It is bold reform.

As I say, we don't pay any attention to turf or the bureaucracies or all the boxes. We give it to a national intelligence director. We call it the national intelligence service.

It's called the 9/11 National Security Protection Act of 2004. We have eight people who have proposed it, and we hope to get a lot more.

(END VIDEO CLIP)

HENRY: Very interesting to note that those eight people Senator Roberts was referring to, eight Republicans on the Senate Intelligence Committee that have endorsed this plan, but there's a ninth Republican that has not authorized it: Senator John Warner. He sits on that committee, but he also is chairman of the armed services committee.

He has not endorsed it because he is very concerned that the Pentagon would lose authority over 80 to 85 percent of the nation's intelligence budget.

Also, agencies like the National Security Agency would be ripped out of the Pentagon. People like John Warner, obviously, also Defense Secretary Donald Rumsfeld who was on the Hill last week very concerned that this might actually create new problems.

And I can tell you as well, Democrats like Senator John Kerry, Republicans at the White House, the president, noncommittal so far about this plan. So it's important to note that it's just one of many plans we will see over the next few weeks, and we have a long way to go before there's any consensus, Bill.

HEMMER: That we do. Ed, thanks for that. Ed Henry in Washington today -- Daryn.

KAGAN: On to the Kerry campaign. It today plans to release a new television ad in key battleground states, accusing the Bush campaign of attacking Senator Kerry's war service through a front group. Here's a look at the Kerry ad.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry and I approved this message.

ANNOUNCER: American soldiers are fighting in Iraq. Families struggle to afford health care. Jobs heading overseas.

Instead of solutions, George Bush's campaign supports a front group attacking John Kerry's military record, attacks called smears, lies. Senator McCain calls them dishonest.

Bush smeared John McCain four years ago. Now he's doing it to John Kerry.

George Bush, denounce the smear. Get back to the issues. America deserves better.

(END VIDEO CLIP)

KAGAN: The Kerry campaign is also expected today to file a complaint with the Federal Election Commission. The Bush campaign calls the Kerry claims frivolous.

Let's bring in our political analyst, Bill Schneider.

Bill, first to look at the Kerry claim saying that this is a big smear campaign. Are those accurate?

BILL SCHNEIDER, CNN POLITICAL ANALYST: Well, look, that first ad that the swift boat group ran was a smear. Kerry -- it said that Kerry lied to get his medals and he betrayed his shipmates.

The "Washington Post," did an investigation and they found insufficient evidence behind those claims.

President Bush professes innocence of the smear, because he said the ad wasn't made by his campaign. It was made by an independent group.

KAGAN: An independent group that the Kerry campaign says has some interesting ties. Bush campaign says, "You're just playing the six degrees of separation game." What about those accusations? SCHNEIDER: Well, there's no evidence of direct collaboration between the Bush/Cheney campaign and the swift boat veterans group. But "The New York Times" looked into it, and they found that there were ties between the people who organized the group and made the ad on the one hand and the Bush family and the Republican Party on the other hand. Many of them had been big Republican contributors.

President Bush has, in fact, praised what he called Kerry's noble service in the Vietnam War, but at the same time, he refuses to renounce the ad. Democrats call that insincere, disingenuous.

KAGAN: Meanwhile, a new voice comes into this debate over the weekend. Former Senator Bob Dole had some comments about John Kerry. Let's listen in to those.

(BEGIN VIDEO CLIP)

BOB DOLE (R), FORMER SENATOR/WWII VETERAN: Maybe he should apologize to all the other 2.5 million veterans who served. He wasn't the only one in Vietnam.

And here's a -- you know, good guy, a good friend. I respect his record, but three Purple Hearts and never bled that I know of. They are all superficial wounds. Three Purple Hearts and you're out.

I think Senator Kerry needs to talk about his Senate record, which is pretty thin. That's probably why he's talking about his war record, which is pretty confused.

(END VIDEO CLIP)

KAGAN: Bill, the Senator Dole refers to Senator Kerry as a good friend. With friends like that saying things like that, you know, the old, "who needs enemies?"

SCHNEIDER: That's right. Look, Senator Kerry doesn't want to talk about his war record, although he used it to get the nomination, certainly.

And he doesn't want to talk about his Senate record, interestingly, because Senator Dole is right. It isn't a very strong Senate record.

He wants to talk about Bush's record. You saw the ad that he's running. Get back to the issues. The only way Kerry has a hope of winning this thing is by saying the issues are President Bush's record in Iraq, on the economy, on health care, on education.

Kerry is urging the campaign to get back to those issues, because if it's about his own record it's going to be tough for him to win.

KAGAN: It's also interesting enough, also, from Senator Dole at the end of all those comments saying, "Well, yes, the White House probably doesn't like this, but you know what? Senator Kerry is probably ahead in most places and in the electoral college."

SCHNEIDER: Well, he has been ahead in the polls, but only slightly. This race is still very, very close.

And if the White House and the Republicans can move the campaign from Bush's record to Kerry's record, whether it's his war record or his anti-war record or his Senate record, it's going to be tough for Kerry.

You know, Kerry was both a war hero and an anti-war hero. And a new ad has come out from the swift boat veterans group which attacks his anti-war activities. That's not a smear. That's a fair charge. He was an anti-war leader, and a lot of people still resent that.

KAGAN: And the story goes on. Bill Schneider from Washington. Bill, thank you.

HEMMER: About 10 minutes past the hour. Now a check of the weather. Here's Chad Myers watching things on a Monday morning. Seems to be quiet. That's a good thing.

Chad, good morning.

(WEATHER REPORT)

HEMMER: Thank you, Chad. Talk to you later.

KAGAN: Don't you have a big birthday coming up in a few months?

HEMMER: Who?

KAGAN: You.

HEMMER: Yes.

KAGAN: Yes, OK.

HEMMER: It's awhile from now.

KAGAN: Well, we're talking about...

HEMMER: We don't have to talk about it now, do we?

KAGAN: We do, because we're talking about living longer.

HEMMER: You want to rub it in a little more? I'm going to be 40.

KAGAN: Wow. You'll have to tell me what that's like when you get there.

HEMMER: Yes, I will.

KAGAN: Living longer, living better. More and more people are hitting the century Mark. How are they doing it? We are "Paging Doctor Gupta" on that one.

HEMMER: Also in a moment here, say it ain't so. The friendly confines about to be shut down. Is that possible? I'll have a look at that.

KAGAN: It's not going to happen, I'm telling you.

Also, jurors in the Scott Peterson trial heard dozens of taped phone conversations the last two weeks. What's so important about the phone conversations they haven't heard? That is ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

KAGAN: In the Scott Peterson trial, star prosecution witness Amber Frey is set to be cross-examined today. The judge sent the jury home early last Wednesday, and adjourned the cross-examination until today.

Joining us with analysis from Redwood City, former San Mateo County prosecutor, Dean Johnson.

Dean, good morning.

DEAN JOHNSON, FORMER SAN MATEO COUNTY PROSECUTOR: Good morning.

KAGAN: First of all, any idea what the snag was that held up the cross-examination?

JOHNSON: Well, rumors have been flying all over here all week, all last week and all this weekend. We have heard that possibly these are audiotapes of Amber Frey with some sort of salacious material.

We've also heard what seems to be the most credible theory, is that perhaps there are documents on CDs that were in the possession of a public defender who represented Scott Peterson for just a few weeks, and that both sides actually want to review these before the cross- examination of Amber Frey.

KAGAN: So you're talking about phone calls that would be potentially more salacious than what we've already heard between Amber Frey and Scott Peterson?

JOHNSON: Well, yes. And remember, we're reading between the lines to a certain extent.

We already know from the judge's rulings last week that Mark Geragos had proposed to offer evidence about Amber Frey's romantic relationships before, during and after her relationship with Scott Peterson.

Judge Dellucci has taken a meat ax to that and said, "Look, nothing before, nothing after, only what was going on in Amber's life during her relationship with Scott Peterson, and then only if they're referred to in the tapes that we've already heard."

KAGAN: And does that -- is that even a good idea to go so directly and so tough against Amber Frey? Isn't she a pretty sympathetic witness at this point?

JOHNSON: I think that's a huge mistake. Of course, Mark Geragos is an excellent cross-examiner.

But Amber Frey is the only witness who has really clicked with this jury. She's very credible. The jury sees her as very fragile, very vulnerable, and attacking her character, which apparently the defense intends to do, I think, would be a big mistake.

KAGAN: And would you -- If you're the prosecution, are you comfortable with leaving the case where it is now?

JOHNSON: Absolutely not. If I'm the prosecution in this case, I would have done it very differently.

But given what we have, we have a very credible witness. She makes a very good backdrop now for further evidence, but that evidence must be some sort of physical evidence, circumstantial evidence that points directly to Scott Peterson as the one and only person who could have committed this murder.

If they've got that evidence, this is the time to show that. You cannot rest at this point if you're the prosecution.

KAGAN: So many people have listened in so carefully to those phone calls. But I don't think a lot of people realize that's just a drop in the bucket of the phone calls that were recorded.

JOHNSON: That's correct. We heard a few dozen phone calls. We are told that there are as many as several hundred phone calls and that the prosecution has been very selective in putting forth what it thinks are the most useful phone calls for stating its case.

KAGAN: And the defense can't pick other ones? They have to only do -- only use what's been played so far?

JOHNSON: Judge Dellucci has limited the time frame of the phone calls and said, "Yes, you can bring in phone calls that are actually referred to in the ones played by the prosecution."

Once we get beyond that area we have problems with hearsay, with inadmissible evidence, with attack -- with inadmissible character evidence, legal problems.

Judge Dellucci has limited the defense's use of phone calls and tapes very sharply and made it very clear that he's not going to allow the defense to go on a fishing expedition after Amber Frey's character.

KAGAN: The trial goes on from Redwood City. Dean Johnson, thanks for getting up early this morning.

JOHNSON: Thank you.

HEMMER: Thirty-five years ago last week a rock music concert stretching over several days helped define a generation of Americans.

Woodstock was held on a farm in upstate New York. It was the brainstorm of a young music executive by the name of Artie Kornfeld and his friend and fellow music promoter Michael Lang.

Kornfeld explained how he came up with Woodstock with CNN's Carol Lin.

(BEGIN VIDEO CLIP)

ARTIE KORNFELD, WOODSTOCK PROMOTER: My late wife, Michael and myself at my penthouse, actually, in Manhattan, because I was vice president of Capitol at 24, and hit a rock. And Michael came to me in my office with a group, and after hanging out for three months, one night at 3 in the morning, the idea came up.

CAROL LIN, ANCHOR: And how did you envision this?

KORNFELD: Well, it was -- He was teasing me, because I had already had 65 hits as a writer and a lot of acts. But I didn't go to concerts anymore. And I said, what if we had a Broadway show and we just invited everybody on for free and had all the money in the world.

And he said what if we put it on a field out in the open. And then he said, "I bet you 50,000 would come."

I said, "I bet you 100,000."

And my late wife said 300,000.

(END VIDEO CLIP)

HEMMER: When it was all said and done, 400,000 showed up attending Woodstock in August of 1969.

In a moment here, it's enough here to make an art lover scream. One of the most famous paintings in the world stolen in broad daylight. A play by play of the daring heist in a moment here.

Also, an Olympic update is straight ahead from Athens. Take a stab at this trivia. Which three cities have hosted the summer games more than once? The answer after a break.

(COMMERCIAL BREAK)

HEMMER: All right. Here's the answer to today's trivia question. This hour, which three cities have hosted the summer games more than once? The answer?

KAGAN: My hometown.

HEMMER: Los Angeles...

KAGAN: Paris.

HEMMER: ... Paris and London. You've got to throw Athens in there, too, don't you?

KAGAN: That's what I was thinking.

HEMMER: 1896.

KAGAN: '96 and this time.

HEMMER: L.A., '32, '84; Paris, 1900, 1924; and London 1908 and 1948. I just pulled that out of my head and read it right there.

KAGAN: And it's amazing what is in his head.

HEMMER: No city has hosted the summer games more than twice, though.

CAFFERTY: All right. Our esteemed boom camera operator, Shane, thought it was Lake Placid.

HEMMER: Summer.

The world's fastest man, once again, that title belongs to an American.

Well done, Shane.

Twenty-two-year-old Justin Gatlin won the 100-meter dash in just under 10 seconds yesterday. In fact, the first four finishers all under 10 seconds, or 9.8, anyway. First time it's ever been that quick before.

He outran Maurice Greene, who took the bronze.

In the women's marathon, Japan's Mizuki Noguchi held off the reigning world champ by just about 11 seconds, earning her country a second straight Olympic gold; 4'11", and she can fly.

The U.S. women's softball team plays Australia for the gold medal later today. Team USA has already beaten the Aussies twice in preliminary play and the semi-finals. No one's scored on the women just yet.

And the U.S. continues to lead -- watch it -- continues to lead the medal count, total of 58, followed by China and Russia. Thanks for that, Daryn.

KAGAN: No one has scored on the women yet. Thank you, Bill.

CAFFERTY: Daryn Greene, the guy who got the bronze in the 100 meters...

KAGAN: Maurice Greene.

CAFFERTY: Maurice Greene. He was complaining that the reason he didn't get the gold medal is because he was in lane No. 7, and he couldn't see what the other runners were doing.

Note to Maurice Greene, the reason you didn't win the gold medal is you didn't run fast enough to beat the rest of the people in the field. I mean, immediately the race -- this guy was talking about how he's the fastest guy on the planet and the best. And the minute he lost it was, "Well, I was in the wrong lane. If I'd have been in this lane." I mean, it's unbelievable.

Want a little cheese to go with that whine, Maurice?

HEMMER: Excuses are like...

CAFFERTY: I know. Like noses. Everybody's got one.

Now, over the weekend here's what happened with our government was at work. Well, a couple of them.

Chairman of the Senate Intelligence Committee unveiled a surprise plan to completely revamp the CIA, remove most of the intelligence gathering operations from the Pentagon and create a national intelligence director. It's actually kind of a sweeping, radical idea. Big-time overhaul is what they're talking about.

There was criticism, to be sure. What we want to know from you this morning, though, is do you think that Congress is moving in the right direction when it comes to intelligence reform?

Diana in Ocala, Florida, writes, "On 'Face the Nation' yesterday Senator Carl Levin did not say that Senator Roberts' plan was a mistake. He said that excluding all Democrats from the discussions was a mistake, because the plan can't be unveiled as a bipartisan effort. Senator Levin had not seen the plan. Therefore he could not and would not comment on it."

Robert in Bristol, Rhode Island, writes, "Definitely not. Its decisions are political, no matter how many times you hear them say certain things are nonpartisan. And it doesn't matter which party is in control."

This letter had no signature. "While much of Congress sleeps, Levin does not. I agree with him, Congress should be very careful before dismantling the system." My hunch is that Carl Levin wrote that one.

And Gerhart in Steger, Illinois, "The real question should be does anyone remember Congress ever moving in the right direction on intelligence or reform?" That's a bit harsh. It's a fine bunch of ladies and gentlemen. But they are still on vacation. The country needs go wanting; they take the month of August off.

I wonder, do those clowns get overtime down there in D.C.?

KAGAN: No. They make over $100,000.

CAFFERTY: Oh, yes, that's right. Yes. I forgot.

HEMMER: You're watching it, though. You're keeping tabs on it.

CAFFERTY: Well, we try. KAGAN: Yes.

HEMMER: Thank you, Jack.

In a moment here, get you back to Iraq, what's happening in Najaf. Still a mess, we're told. More fighting reported over the weekend. In a moment, live to Baghdad, after this.

(COMMERCIAL BREAK)

KAGAN: Latest news every morning in your e-mail. Sign up for AMERICAN MORNING Quick News at CNN.com/am.

And still to come, a piece of Americana may have to close its doors. A look at that ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Daryn Kagan with us here in New York City today.

Good morning, Daryn.

KAGAN: Good morning, Billy. It's good to be with you here on this Monday morning.

HEMMER: Have you given me enough grief yet?

KAGAN: No. We're only halfway done with the show.

HEMMER: We are.

In a moment here, we're going to go back to Iraq, and all the talking has done nothing right now to stop the bloodshed in Najaf. More fighting again today. We'll look at what's happening at this hour. Live to Baghdad for that in a moment.

KAGAN: Also, few works of art are more well known than "The Scream." Right now, though, no one knows where this famous painting is. Maybe a couple of thieves do. We're going to look into the investigation into this brazen robbery at the Munch Museum in Oslo, Norway.

HEMMER: Apparently, some of the people there on hand were just stunned to see it carried out in front of them with all the security detail in that museum, literally not stopping it.

KAGAN: Certainly not enough.

HEMMER: You're right about that.

In a moment here, do you think exercise is the best way to live to be 100? If so, Sanjay's here with us, tells us what steps you need to take if you want a shot at the century mark. Then we'll get to that.

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Aired August 23, 2004 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CO-HOST: Is it the end of the CIA? A sweeping proposal by a key Senate Republican catches Washington by surprise.
Potential for a surprise in the Scott Peterson trial as Amber Frey prepares to be cross-examined by the defense.

And living to 100. Following the formula for a very long life on this AMERICAN MORNING.

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

KAGAN: And good morning. I'm Daryn Kagan in for Soledad. And the babies are not here yet.

BILL HEMMER, CO-HOST: They're not here yet. Still watching the calendar. Good to have you in New York, Daryn.

KAGAN: Good to see you here, Billy.

HEMMER: Coming up this hour, after all the back and forth over these political ads run against John Kerry, criticizing his Vietnam War record, the big question now is have they damaged his campaign? Bill Schneider is back with us today answering just that question in a moment here.

KAGAN: Also, could a poem help crack the terrifying case of the BTK serial killer in Wichita, Kansas? We'll take a look at a new clue and where it's leading investigators.

HEMMER: Also, the story from over the weekend. We'll find out what police are learning today as they try to track down the thieves who stole the famous painting "The Scream" from a museum in Norway. It is on the loose.

KAGAN: In broad daylight.

HEMMER: With security guards all over the place, and they still got it and clipped the wires. So we'll check that out this morning.

Good morning, Jack.

JACK CAFFERTY, CO-HOST: That's the biggest thing that's happened in Norway in 50 years. You know that?

KAGAN: Actually in 10 years. CAFFERTY: Somebody swiped a painting.

KAGAN: They stole it -- they stole a painting from the same museum 10 years ago.

CAFFERTY: Damn. Serial thief at work over there.

Coming up in "The Cafferty File," we'll tell you about a 105- pound woman who ate 10 percent of her body weight in lobster meat in something like nine minutes. It's pretty disgusting, actually.

And an avant garde theater director who gave audience members a big surprise when they jeered his opera. He had a little something for them.

HEMMER: All right, Jack. Thanks for that.

A check of the top stories as we start the new hour. Here's Carol -- Carol Costello.

Good morning, Carol, on a Monday.

CAROL COSTELLO, ANCHOR: You're still reeling from Jack's comments there. I want to know what that guy did. Thank you, Bill.

New fighting this morning being reported in Najaf. Thick smoke rose around the area near the Imam Ali mosque. A spokesman for the radical cleric Muqtada al-Sadr says American aircraft pounded militia postings around the site. The U.S. military has not confirmed that report, and it's not clear if there were any injuries at all.

A delay in the trial of three American accused of abusing prisoners in Afghanistan. The group is accused of torturing civilians at a private prison. A verdict had been expected today, but a judge adjourned the court for a week to allow one of the defendants to retain a lawyer. If convicted, the suspects face up to 20 years in prison.

A military hearing began today for four U.S. soldiers charged in the Iraqi prisoner abuse scandal. Two days of preliminary hearings began today at a U.S. Army base in Manheim, Germany. The proceedings were moved out of Baghdad for safety concerns expressed by the defense. A total of seven Army reservists are accused in that case.

In Athens, a Russian shot-putter has been stripped of her gold medal and sent home. Irina Korzhanenko is the latest athlete to test positive for steroids and the first to be stripped of an Olympic title. That gold medal now goes to Cuba.

Back to New York and Bill.

HEMMER: All right, Carol. Thanks for that.

There's a proposal for a vastly different American intelligence service now laid on the table. Ed Henry is live on Capitol Hill today. Ed, good morning to you.

ED HENRY, CNN CORRESPONDENT: Good morning to you, Bill.

There's been a lot of talk this summer in Washington about reform. But the first one out of the box with a plan, a real radical plan almost, is Senate intelligence chairman Pat Roberts.

And in fact, his plan is bolder than even the 9/11 Commission laid out in its blueprint. This is going to ruffle a lot of feathers.

First and foremost at the CIA, which will be broken into pieces. All that will be left will be three different parts: an Office of National Clandestine Service that would deal with human spying, an Office of National Assessment to assess all of the information coming in and an Office of Technical Support to deal with research and development.

Now what it would be replaced with and what these parts would actually end up reporting to is a national intelligence director, full budget authority, all of the powers that some people in Washington have been pushing for and, in fact, Senator Roberts said this plan has to be aggressive. He said a half measure will not do.

(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R-KS), CHAIRMAN, SENATE INTELLIGENCE COMMITTEE: We can't afford in this country now to go the 39th time. So this is real reform. It is bold reform.

As I say, we don't pay any attention to turf or the bureaucracies or all the boxes. We give it to a national intelligence director. We call it the national intelligence service.

It's called the 9/11 National Security Protection Act of 2004. We have eight people who have proposed it, and we hope to get a lot more.

(END VIDEO CLIP)

HENRY: Very interesting to note that those eight people Senator Roberts was referring to, eight Republicans on the Senate Intelligence Committee that have endorsed this plan, but there's a ninth Republican that has not authorized it: Senator John Warner. He sits on that committee, but he also is chairman of the armed services committee.

He has not endorsed it because he is very concerned that the Pentagon would lose authority over 80 to 85 percent of the nation's intelligence budget.

Also, agencies like the National Security Agency would be ripped out of the Pentagon. People like John Warner, obviously, also Defense Secretary Donald Rumsfeld who was on the Hill last week very concerned that this might actually create new problems.

And I can tell you as well, Democrats like Senator John Kerry, Republicans at the White House, the president, noncommittal so far about this plan. So it's important to note that it's just one of many plans we will see over the next few weeks, and we have a long way to go before there's any consensus, Bill.

HEMMER: That we do. Ed, thanks for that. Ed Henry in Washington today -- Daryn.

KAGAN: On to the Kerry campaign. It today plans to release a new television ad in key battleground states, accusing the Bush campaign of attacking Senator Kerry's war service through a front group. Here's a look at the Kerry ad.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I'm John Kerry and I approved this message.

ANNOUNCER: American soldiers are fighting in Iraq. Families struggle to afford health care. Jobs heading overseas.

Instead of solutions, George Bush's campaign supports a front group attacking John Kerry's military record, attacks called smears, lies. Senator McCain calls them dishonest.

Bush smeared John McCain four years ago. Now he's doing it to John Kerry.

George Bush, denounce the smear. Get back to the issues. America deserves better.

(END VIDEO CLIP)

KAGAN: The Kerry campaign is also expected today to file a complaint with the Federal Election Commission. The Bush campaign calls the Kerry claims frivolous.

Let's bring in our political analyst, Bill Schneider.

Bill, first to look at the Kerry claim saying that this is a big smear campaign. Are those accurate?

BILL SCHNEIDER, CNN POLITICAL ANALYST: Well, look, that first ad that the swift boat group ran was a smear. Kerry -- it said that Kerry lied to get his medals and he betrayed his shipmates.

The "Washington Post," did an investigation and they found insufficient evidence behind those claims.

President Bush professes innocence of the smear, because he said the ad wasn't made by his campaign. It was made by an independent group.

KAGAN: An independent group that the Kerry campaign says has some interesting ties. Bush campaign says, "You're just playing the six degrees of separation game." What about those accusations? SCHNEIDER: Well, there's no evidence of direct collaboration between the Bush/Cheney campaign and the swift boat veterans group. But "The New York Times" looked into it, and they found that there were ties between the people who organized the group and made the ad on the one hand and the Bush family and the Republican Party on the other hand. Many of them had been big Republican contributors.

President Bush has, in fact, praised what he called Kerry's noble service in the Vietnam War, but at the same time, he refuses to renounce the ad. Democrats call that insincere, disingenuous.

KAGAN: Meanwhile, a new voice comes into this debate over the weekend. Former Senator Bob Dole had some comments about John Kerry. Let's listen in to those.

(BEGIN VIDEO CLIP)

BOB DOLE (R), FORMER SENATOR/WWII VETERAN: Maybe he should apologize to all the other 2.5 million veterans who served. He wasn't the only one in Vietnam.

And here's a -- you know, good guy, a good friend. I respect his record, but three Purple Hearts and never bled that I know of. They are all superficial wounds. Three Purple Hearts and you're out.

I think Senator Kerry needs to talk about his Senate record, which is pretty thin. That's probably why he's talking about his war record, which is pretty confused.

(END VIDEO CLIP)

KAGAN: Bill, the Senator Dole refers to Senator Kerry as a good friend. With friends like that saying things like that, you know, the old, "who needs enemies?"

SCHNEIDER: That's right. Look, Senator Kerry doesn't want to talk about his war record, although he used it to get the nomination, certainly.

And he doesn't want to talk about his Senate record, interestingly, because Senator Dole is right. It isn't a very strong Senate record.

He wants to talk about Bush's record. You saw the ad that he's running. Get back to the issues. The only way Kerry has a hope of winning this thing is by saying the issues are President Bush's record in Iraq, on the economy, on health care, on education.

Kerry is urging the campaign to get back to those issues, because if it's about his own record it's going to be tough for him to win.

KAGAN: It's also interesting enough, also, from Senator Dole at the end of all those comments saying, "Well, yes, the White House probably doesn't like this, but you know what? Senator Kerry is probably ahead in most places and in the electoral college."

SCHNEIDER: Well, he has been ahead in the polls, but only slightly. This race is still very, very close.

And if the White House and the Republicans can move the campaign from Bush's record to Kerry's record, whether it's his war record or his anti-war record or his Senate record, it's going to be tough for Kerry.

You know, Kerry was both a war hero and an anti-war hero. And a new ad has come out from the swift boat veterans group which attacks his anti-war activities. That's not a smear. That's a fair charge. He was an anti-war leader, and a lot of people still resent that.

KAGAN: And the story goes on. Bill Schneider from Washington. Bill, thank you.

HEMMER: About 10 minutes past the hour. Now a check of the weather. Here's Chad Myers watching things on a Monday morning. Seems to be quiet. That's a good thing.

Chad, good morning.

(WEATHER REPORT)

HEMMER: Thank you, Chad. Talk to you later.

KAGAN: Don't you have a big birthday coming up in a few months?

HEMMER: Who?

KAGAN: You.

HEMMER: Yes.

KAGAN: Yes, OK.

HEMMER: It's awhile from now.

KAGAN: Well, we're talking about...

HEMMER: We don't have to talk about it now, do we?

KAGAN: We do, because we're talking about living longer.

HEMMER: You want to rub it in a little more? I'm going to be 40.

KAGAN: Wow. You'll have to tell me what that's like when you get there.

HEMMER: Yes, I will.

KAGAN: Living longer, living better. More and more people are hitting the century Mark. How are they doing it? We are "Paging Doctor Gupta" on that one.

HEMMER: Also in a moment here, say it ain't so. The friendly confines about to be shut down. Is that possible? I'll have a look at that.

KAGAN: It's not going to happen, I'm telling you.

Also, jurors in the Scott Peterson trial heard dozens of taped phone conversations the last two weeks. What's so important about the phone conversations they haven't heard? That is ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

KAGAN: In the Scott Peterson trial, star prosecution witness Amber Frey is set to be cross-examined today. The judge sent the jury home early last Wednesday, and adjourned the cross-examination until today.

Joining us with analysis from Redwood City, former San Mateo County prosecutor, Dean Johnson.

Dean, good morning.

DEAN JOHNSON, FORMER SAN MATEO COUNTY PROSECUTOR: Good morning.

KAGAN: First of all, any idea what the snag was that held up the cross-examination?

JOHNSON: Well, rumors have been flying all over here all week, all last week and all this weekend. We have heard that possibly these are audiotapes of Amber Frey with some sort of salacious material.

We've also heard what seems to be the most credible theory, is that perhaps there are documents on CDs that were in the possession of a public defender who represented Scott Peterson for just a few weeks, and that both sides actually want to review these before the cross- examination of Amber Frey.

KAGAN: So you're talking about phone calls that would be potentially more salacious than what we've already heard between Amber Frey and Scott Peterson?

JOHNSON: Well, yes. And remember, we're reading between the lines to a certain extent.

We already know from the judge's rulings last week that Mark Geragos had proposed to offer evidence about Amber Frey's romantic relationships before, during and after her relationship with Scott Peterson.

Judge Dellucci has taken a meat ax to that and said, "Look, nothing before, nothing after, only what was going on in Amber's life during her relationship with Scott Peterson, and then only if they're referred to in the tapes that we've already heard."

KAGAN: And does that -- is that even a good idea to go so directly and so tough against Amber Frey? Isn't she a pretty sympathetic witness at this point?

JOHNSON: I think that's a huge mistake. Of course, Mark Geragos is an excellent cross-examiner.

But Amber Frey is the only witness who has really clicked with this jury. She's very credible. The jury sees her as very fragile, very vulnerable, and attacking her character, which apparently the defense intends to do, I think, would be a big mistake.

KAGAN: And would you -- If you're the prosecution, are you comfortable with leaving the case where it is now?

JOHNSON: Absolutely not. If I'm the prosecution in this case, I would have done it very differently.

But given what we have, we have a very credible witness. She makes a very good backdrop now for further evidence, but that evidence must be some sort of physical evidence, circumstantial evidence that points directly to Scott Peterson as the one and only person who could have committed this murder.

If they've got that evidence, this is the time to show that. You cannot rest at this point if you're the prosecution.

KAGAN: So many people have listened in so carefully to those phone calls. But I don't think a lot of people realize that's just a drop in the bucket of the phone calls that were recorded.

JOHNSON: That's correct. We heard a few dozen phone calls. We are told that there are as many as several hundred phone calls and that the prosecution has been very selective in putting forth what it thinks are the most useful phone calls for stating its case.

KAGAN: And the defense can't pick other ones? They have to only do -- only use what's been played so far?

JOHNSON: Judge Dellucci has limited the time frame of the phone calls and said, "Yes, you can bring in phone calls that are actually referred to in the ones played by the prosecution."

Once we get beyond that area we have problems with hearsay, with inadmissible evidence, with attack -- with inadmissible character evidence, legal problems.

Judge Dellucci has limited the defense's use of phone calls and tapes very sharply and made it very clear that he's not going to allow the defense to go on a fishing expedition after Amber Frey's character.

KAGAN: The trial goes on from Redwood City. Dean Johnson, thanks for getting up early this morning.

JOHNSON: Thank you.

HEMMER: Thirty-five years ago last week a rock music concert stretching over several days helped define a generation of Americans.

Woodstock was held on a farm in upstate New York. It was the brainstorm of a young music executive by the name of Artie Kornfeld and his friend and fellow music promoter Michael Lang.

Kornfeld explained how he came up with Woodstock with CNN's Carol Lin.

(BEGIN VIDEO CLIP)

ARTIE KORNFELD, WOODSTOCK PROMOTER: My late wife, Michael and myself at my penthouse, actually, in Manhattan, because I was vice president of Capitol at 24, and hit a rock. And Michael came to me in my office with a group, and after hanging out for three months, one night at 3 in the morning, the idea came up.

CAROL LIN, ANCHOR: And how did you envision this?

KORNFELD: Well, it was -- He was teasing me, because I had already had 65 hits as a writer and a lot of acts. But I didn't go to concerts anymore. And I said, what if we had a Broadway show and we just invited everybody on for free and had all the money in the world.

And he said what if we put it on a field out in the open. And then he said, "I bet you 50,000 would come."

I said, "I bet you 100,000."

And my late wife said 300,000.

(END VIDEO CLIP)

HEMMER: When it was all said and done, 400,000 showed up attending Woodstock in August of 1969.

In a moment here, it's enough here to make an art lover scream. One of the most famous paintings in the world stolen in broad daylight. A play by play of the daring heist in a moment here.

Also, an Olympic update is straight ahead from Athens. Take a stab at this trivia. Which three cities have hosted the summer games more than once? The answer after a break.

(COMMERCIAL BREAK)

HEMMER: All right. Here's the answer to today's trivia question. This hour, which three cities have hosted the summer games more than once? The answer?

KAGAN: My hometown.

HEMMER: Los Angeles...

KAGAN: Paris.

HEMMER: ... Paris and London. You've got to throw Athens in there, too, don't you?

KAGAN: That's what I was thinking.

HEMMER: 1896.

KAGAN: '96 and this time.

HEMMER: L.A., '32, '84; Paris, 1900, 1924; and London 1908 and 1948. I just pulled that out of my head and read it right there.

KAGAN: And it's amazing what is in his head.

HEMMER: No city has hosted the summer games more than twice, though.

CAFFERTY: All right. Our esteemed boom camera operator, Shane, thought it was Lake Placid.

HEMMER: Summer.

The world's fastest man, once again, that title belongs to an American.

Well done, Shane.

Twenty-two-year-old Justin Gatlin won the 100-meter dash in just under 10 seconds yesterday. In fact, the first four finishers all under 10 seconds, or 9.8, anyway. First time it's ever been that quick before.

He outran Maurice Greene, who took the bronze.

In the women's marathon, Japan's Mizuki Noguchi held off the reigning world champ by just about 11 seconds, earning her country a second straight Olympic gold; 4'11", and she can fly.

The U.S. women's softball team plays Australia for the gold medal later today. Team USA has already beaten the Aussies twice in preliminary play and the semi-finals. No one's scored on the women just yet.

And the U.S. continues to lead -- watch it -- continues to lead the medal count, total of 58, followed by China and Russia. Thanks for that, Daryn.

KAGAN: No one has scored on the women yet. Thank you, Bill.

CAFFERTY: Daryn Greene, the guy who got the bronze in the 100 meters...

KAGAN: Maurice Greene.

CAFFERTY: Maurice Greene. He was complaining that the reason he didn't get the gold medal is because he was in lane No. 7, and he couldn't see what the other runners were doing.

Note to Maurice Greene, the reason you didn't win the gold medal is you didn't run fast enough to beat the rest of the people in the field. I mean, immediately the race -- this guy was talking about how he's the fastest guy on the planet and the best. And the minute he lost it was, "Well, I was in the wrong lane. If I'd have been in this lane." I mean, it's unbelievable.

Want a little cheese to go with that whine, Maurice?

HEMMER: Excuses are like...

CAFFERTY: I know. Like noses. Everybody's got one.

Now, over the weekend here's what happened with our government was at work. Well, a couple of them.

Chairman of the Senate Intelligence Committee unveiled a surprise plan to completely revamp the CIA, remove most of the intelligence gathering operations from the Pentagon and create a national intelligence director. It's actually kind of a sweeping, radical idea. Big-time overhaul is what they're talking about.

There was criticism, to be sure. What we want to know from you this morning, though, is do you think that Congress is moving in the right direction when it comes to intelligence reform?

Diana in Ocala, Florida, writes, "On 'Face the Nation' yesterday Senator Carl Levin did not say that Senator Roberts' plan was a mistake. He said that excluding all Democrats from the discussions was a mistake, because the plan can't be unveiled as a bipartisan effort. Senator Levin had not seen the plan. Therefore he could not and would not comment on it."

Robert in Bristol, Rhode Island, writes, "Definitely not. Its decisions are political, no matter how many times you hear them say certain things are nonpartisan. And it doesn't matter which party is in control."

This letter had no signature. "While much of Congress sleeps, Levin does not. I agree with him, Congress should be very careful before dismantling the system." My hunch is that Carl Levin wrote that one.

And Gerhart in Steger, Illinois, "The real question should be does anyone remember Congress ever moving in the right direction on intelligence or reform?" That's a bit harsh. It's a fine bunch of ladies and gentlemen. But they are still on vacation. The country needs go wanting; they take the month of August off.

I wonder, do those clowns get overtime down there in D.C.?

KAGAN: No. They make over $100,000.

CAFFERTY: Oh, yes, that's right. Yes. I forgot.

HEMMER: You're watching it, though. You're keeping tabs on it.

CAFFERTY: Well, we try. KAGAN: Yes.

HEMMER: Thank you, Jack.

In a moment here, get you back to Iraq, what's happening in Najaf. Still a mess, we're told. More fighting reported over the weekend. In a moment, live to Baghdad, after this.

(COMMERCIAL BREAK)

KAGAN: Latest news every morning in your e-mail. Sign up for AMERICAN MORNING Quick News at CNN.com/am.

And still to come, a piece of Americana may have to close its doors. A look at that ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Daryn Kagan with us here in New York City today.

Good morning, Daryn.

KAGAN: Good morning, Billy. It's good to be with you here on this Monday morning.

HEMMER: Have you given me enough grief yet?

KAGAN: No. We're only halfway done with the show.

HEMMER: We are.

In a moment here, we're going to go back to Iraq, and all the talking has done nothing right now to stop the bloodshed in Najaf. More fighting again today. We'll look at what's happening at this hour. Live to Baghdad for that in a moment.

KAGAN: Also, few works of art are more well known than "The Scream." Right now, though, no one knows where this famous painting is. Maybe a couple of thieves do. We're going to look into the investigation into this brazen robbery at the Munch Museum in Oslo, Norway.

HEMMER: Apparently, some of the people there on hand were just stunned to see it carried out in front of them with all the security detail in that museum, literally not stopping it.

KAGAN: Certainly not enough.

HEMMER: You're right about that.

In a moment here, do you think exercise is the best way to live to be 100? If so, Sanjay's here with us, tells us what steps you need to take if you want a shot at the century mark. Then we'll get to that.

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