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CNN Saturday Morning News

A spy for Israel works as an analyst at the Pentagon? A Preview of Lineup at the Republican National Convention

Aired August 28, 2004 - 07:00   ET

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


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


BETTY NGUYEN, CNN ANCHOR: Well, good morning to you.
From the CNN Center right here in Atlanta, this is CNN SATURDAY MORNING.

It is August 28.

7:00 a.m. at the Pentagon, 2:00 p.m. at the Olympic stadium in Athens.

Good morning.

I'm Betty Nguyen.

DREW GRIFFIN, CNN ANCHOR: I'm Drew Griffin.

Thanks for being with us.

Here's our top stories this morning.

The investigation of a possible spy at the Pentagon. The FBI says someone working at a high level there may be an agent for Israel. One official says the person is in a position to influence policy toward Iraq and Iran. More on this in just a minute.

Secretary of State Colin Powell canceled his trip to Athens. He was going to attend Sunday's closing ceremonies. The press of business in Washington, cited specifically, the war in Iraq and the crisis in Sudan.

New violence this morning in eastern Baghdad. Mortar rounds exploding near several government offices, killing two Iraqi civilians. The explosions behind the Iraqi Olympic League building. That is near the ministries of interior, oil and water resources.

New York police clamped down on bike protesters last night. Thousands of bicyclists left Union Square Park for a pre-Republican convention tour of Manhattan, including Madison Square Garden, the convention site. It was sponsored by an environmental group. Police arrested 250 of the bicyclists at various locations, accusing them of massive disruptions. The cyclists deny that.

Keeping you informed, CNN, the most trusted name in news.

NGUYEN: And here's what's ahead this hour.

We have more arresting images from New York City just days before the Republican national convention. Protesters tried to rain on the parade of the grand old party. We'll have the latest on protests, politics and police presence.

Also, they've used might and muscle to muster medals. The 28th Olympiad is coming to a close and we'll have the latest on who's finished and who is still competing.

And toying around with tragedy? This children's candy has what some consider an offensive addition. Some angry Florida residents say it is not for child's play. That is straight ahead.

GRIFFIN: Up first this morning, the Washington spy case. Has a mole burrowed into the Pentagon to spy for Israel? The FBI investigating that.

And national security correspondent David Ensor has the details.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): The FBI has evidence there may be a spy for Israel who's been working at high levels in the Pentagon, senior U.S. officials confirm to CNN.

One of the officials says the Israeli mole could have been in a position to influence Bush administration policy towards Iran and Iraq. Sources say the FBI investigation has been going on for many months and that more than one government employee is under investigation.

CBS News, which first reported the story, says the FBI has evidence against the suspect, including wiretaps and photographs. The network said the alleged spy has ties to two senior Bush administration officials, Deputy Secretary of Defense Paul Wolfowitz and Undersecretary of Defense Douglas Fife. The government official says the suspect is an analyst at the Pentagon. An FBI spokesman said the bureau has no comment on the report.

An Israeli Embassy spokesman, reached by CNN, said the report is wrong. "We categorically deny these allegations. They are completely false and outrageous."

Officials are saying that the alleged spy passed classified documents to an American lobbying organization with ties to Israel, which passed them on to the Jewish state.

The group, the American Israel Public Affairs Committee has also issued a statement saying that, "Any allegation of criminal conduct by the organization or its employees is baseless and false." AIPAC went on to say, "We are fully cooperating with the government authorities and will continue to do so."

In fact, sources say, the FBI has interviewed two AIPAC employees in the case. This is not the first time Israel is alleged to have spied on its friend the United States. Former Navy intelligence analyst Jonathan Pollard is serving a life sentence for espionage on Israel's behalf.

(on camera): Washington insiders note that it's not unusual for friendly governments to have access to certain classified information, so if these allegations are correct, not everyone involved may have thought they were participating in espionage. Still, one U.S. source tonight is calling this case a very serious matter.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

GRIFFIN: Since this story broke, the Department of Defense released this statement. It says it's cooperating with the Department of Justice on the matter for an extended period of time. "It is the DOD's understanding that the investigation within the Department of Defense is limited in scope."

We will be reporting live from the Pentagon throughout the day on this development. The first report at 9:00 a.m. Eastern here on CNN SATURDAY MORNING.

NGUYEN: Well, the Republican convention won't gavel to order until Monday evening. But protesters are already in New York to spread their message. A massive protest by Planned Parenthood is set for later today, as well as a counter march by anti-abortion supporters.

Now, yesterday, about 5,000 bicyclists chanting anti-Bush slogans snaked through the borough of Manhattan. They also went past Madison Square Garden and the RNC convention site, which is Madison Square Garden. The 250 bikers were arrested, mostly, though, for disrupting traffic.

A group called Mothers Opposing Bush pushed strollers across Brooklyn Bridge in another protest. They complained money for a preemptive war takes money from childcare.

The nearly 5,000 delegates and alternates inside the Garden will focus on the party platform and nomination of its candidates and they'll listen to rousing speeches by Republican stars.

As Bob Franken reports, the GOP may tilt more toward the center at this party gathering.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Critics say the lineup is like putting lipstick on a pig. Compassionate conservatives, yes, passionate ones, no. From night one, the party will be putting what it regards as its best faces forward, or best gloss, depending on the point of view. It doesn't matter says the campaign chairman.

MARC RACICOT, BUSH CAMPAIGN CHAIRMAN: So I think there's just a remarkable difference for the American people between the president and what he has to offer, and his opposition in terms of their clarity, their consistency and their steady hand.

FRANKEN: So, Senator John McCain, who has morphed recently from the picture of Bush irritant to pictures of Bush embraced, is at the podium Monday evening. So is Rudy Giuliani, another of the so-called moderates. And a reminder of the September 11th attacks here.

RUDY GIULIANI, FMR. NEW YORK MAYOR: We need someone who is going to understand that we have to remain firm against terrorists.

FRANKEN: Tuesday is another night of stars, quite literally, with California Governor Arnold Schwarzenegger, certainly a muscular party figure, but conservatives say he is weak on gun control and abortion. Maryland Lieutenant Governor Michael Steele will also speak that night. Who's that? Well, that was the same question everyone asked about Illinois Democratic Senate candidate Barack Obama before he spoke to his convention.

And that's not all. First lady Laura Bush also goes gently into the night Tuesday. Wednesday, the warm Republican embrace includes a Democrat, a nominal one in many eyes, Georgia's Senator Zell Miller.

Then Vice President Cheney, so the conservatives finally get their red meat man. And don't expect anything in his speech about gay rights. And then, of course, Thursday's big finish, President Bush, with a variation on his theme: Bush good, John Kerry not good.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're going to beat him come November.

FRANKEN: The president will deliver his remarks from a specially-constructed theater in the round stage.

(END VIDEOTAPE)

FRANKEN: Like the Democratic convention, this is going to be extreme political theater. But, with many of the major characters out of sight.

Bob Franken, CNN, New York.

(END VIDEO TAPE)

NGUYEN: Well, the 2000 election taught us all about what the constitution really means. When it comes to winning the presidential race, the electoral vote trumps the popular vote. A CNN analysis shows President Bush has a small lead over Senator John Kerry in the Electoral College and found of the election were held today, Bush would get 274 electoral votes compared to 264 for Kerry. Now, a candidate needs 270 electoral votes to win the presidency.

Bush remains strong, though, across the South, in the Rocky Mountain and Great Plains states. Kerry leads in the Northeast and West. The industrial Midwest states? Well, they are still a tossup. GRIFFIN: And stay with CNN for all your convention coverage. It begins tomorrow with an in depth look at the president. CNN present "The Mission of George W. Bush" at 8:00 p.m. Eastern, followed by a special live edition of "LARRY KING LIVE." Then at 10:00 Eastern, it's Wolf Blitzer and Judy Woodruff for an "AMERICA VOTES 2004" special, a preview of the Republican convention.

The Internet has become a critical part of the candidates' campaign. The Web is now crowded with sites offering everything from the next political rally to candidates' stands on various issues. Or, how about this one, a Web site that shows how much your neighbors are contributing to presidential candidates. All you have to do is plug in a zip code or someone's name. It's one of the political sites we'll feature tomorrow morning when we debut a new segment called "Best of the Web" to help you navigate the Internet. That's on CNN SUNDAY MORNING at 9:00 Eastern.

NGUYEN: In the war on terror, the FBI and Homeland Security Department say al Qaeda may be looking for a military target and it might try to attack a veterans affairs hospital. In a nationwide bulletin, the government warns police and security personnel to watch for suspicious activities at V.A. hospitals. Authorities say there's no credible intelligence about a specific threat.

Russian officials are reportedly cracking down on the airline industry. Security officials think at least one of this week's two plane crashed was an act of terror. They found traces of explosives on one of the downed jets. A Chechen rebel leader has denied any involvement in the mishap.

The U.S. military has wrapped up hearings for four detainees at Guantanamo Bay, Cuba. They're accused of terrorism. More proceedings are still ahead. Prosecutors say charges should be brought against nine other suspects.

GRIFFIN: A state-of-the-art anti-terror tool looks like a sport utility vehicle. The Port Authority of New York and New Jersey has a new security device that can sniff out radioactive material. It's a modified SUV worth $2.5 million. It'll conduct random inspections of commercial vehicles there.

NGUYEN: This is an interesting one. Florida residents are upset over a little trinket that depicts an enormous tragedy. This child's toy, check it out, shows an airplane that appears to be crashing into the World Trade Center on 9/11. A candy wholesaler is recalling some 14,000 bags of candy in central Florida that contain the trinket. The candy company says it bought the toys from an import company and hadn't noticed what it depicted until they received complaints. And I can imagine they received plenty of those.

(BEGIN VIDEO CLIP)

ROSANNA POWERS: The two men I cared the most about in my life and they're both gone, one day after another.

(END VIDEO CLIP) GRIFFIN: She's lost two loved ones in the fight for Iraq within days. A double dose of tragedy in Florida.

NGUYEN: Plus, storms in Kansas and thousands lose power. We'll have an update.

GRIFFIN: And a Dream Team nightmare they just can't wake up from. We'll go live to the Greek capital when CNN SATURDAY MORNING returns.

NGUYEN: But first, a musical and a feature film about Jesus Christ comes to DVD on Tuesday. Andrew Lloyd Webber's "Jesus Christ Superstar and Mel Gibson's "The Passion of the Christ" are out. Also, for ballet lovers, Sergei Prokofiev's "Romeo and Juliet."

And do you want a little suspense? "Twisted," starring Ashley Judd and Samuel L. Jackson is out. New in the movie category, a couple of thrillers and a comedy. We'll have a preview in our "Now Showing" segment. That's just a little bit later this hour.

(COMMERCIAL BREAK)

GRIFFIN: You can expect dozens of demonstrations in New York during the GOP convention. Politics and protests, of course, not exactly strange bedfellows. We're going to have a trip back in time to show you what was happening here. That's coming up.

And at 8:00 Eastern, whose DNA is it? The Kobe Bryant trial on the docket in our "Legal Briefs." That's later.

(COMMERCIAL BREAK)

NGUYEN: The Summer Games are almost to the finish line in Athens. Here's a live look at the Greek capital. We'll go live there for a report in a little bit.

But first, checking our top stories.

Senior U.S. officials tell CNN there is a possible spy working at the Pentagon. Officials say the suspect allegedly passed classified documents to Israel through a pro-Israeli lobbying group. Israeli officials deny the story.

Lawyers on both sides in the Kobe Bryant sexual assault case are spending the weekend reviewing 300 questionnaires filed or filled out by potential jurors. Fifty people will be called back Monday for more questioning.

State election officials in Florida can't give 15 counties with touch screen voting machines an exemption from a state law requiring manual recounts in close elections. That's the ruling from an administrative judge.

And, a close call for the driver of this cement truck. Check it out. The story of his rescue in our "Wows of the Week" a little later this hour. GRIFFIN: That Dream Team, well, it ain't going to do it. And one sprinter's dreams of gold turns into a nightmare.

For the latest on the Olympic action in Athens, we go to CNN's Mark McKay -- Mark, what happened to these guys?

MARK MCKAY, CNN CORRESPONDENT: Well, you know, expectations are everything. They came here, lost a couple of games. The rumbling began and then they really had a chance to prove themselves last night, but not since the Seoul Olympics back in 1988, Drew, will the United States have a chance to play for gold.

Later today here in Athens, the best they will be able to do is take home the bronze, after Team USA lost to Argentina 89-81 in Friday's semifinals. Manu Ginobilli of the NBA San Antonio Spurs scored 29 points against many of his professional counterparts. Italy knocked out Lithuania. That is the team the U.S. will meet for bronze a little later today in Athens.

Disappointing games, of course, for Marion Jones. She came here with expectations of perhaps medaling in two events. It didn't happen. About an hour after she finished fifth in the long jump last night at Olympic Stadium, Jones went out as a member of the relay squad, but on the handoff, the baton handoff was not clean to Lauryn Williams. She apparently left her post a little too early. Jamaica won the gold in the 400-meter relay. The United States failed to medal.

Now, as disappointing as these games were for Marion Jones, it's basically been the opposite here in Athens for Justin Gatlin. And he gets a chance at yet another Olympic medal tonight at Olympic stadium. Gatlin, of course, won the gold medal in the 100 meters. He pulled up with bronze in the 200. He will be part of the 4 by 100-meter relay squad tonight.

A big night of athletics, Drew, at Olympic stadium, as we now sit on the night before the end of the 2004 Summer Games. Back to you.

GRIFFIN: Mark, is the U.S. Olympic Committee happy with the results of these Olympics? They were shooting for, what, 100 medals?

MCKAY: Yes, I think so. Just, it's funny you mention that, Drew. I got the count just before we went on. Going into today, 90 medals overall. So they're pretty close to their expectations, 29 of them gold. China, what a showing at these games, Drew; 57 overall medals, 27 of those were gold going into today's competition. It sets up the Chinese nice to hold the next Summer Games in 2008 in Beijing, don't you think?

GRIFFIN: I think so. Terrific stuff. And a safe Olympics so far.

Good, Mark.

Thank you for that. Well, a boon or a bust? Which Olympic sport do you think is the most difficult for judges to score? Send us your e-mails at wam@cnn.com. We're going to read your answers throughout the morning.

NGUYEN: I have a guess. Men's gymnastics. That's got to be on the list somewhere.

GRIFFIN: Well, have you seen some of the diving scores?

NGUYEN: Yes, that's pretty tight, too, in those.

Well, don't promise what you cannot deliver. The Federal Reserve chief warns the president and Congress once again and tells baby boomers they'll have to tighten their belts.

GRIFFIN: From economic forecasts to weather predictions.

Rob Marciano has a preview.

(WEATHER REPORT)

(COMMERCIAL BREAK)

NGUYEN: Well, good morning, Atlanta.

This is our back yard. You can expect near perfect weather tonight as Barry Bonds continues his march toward baseball immortality. He hit home run number 694 last night, but the Braves won the game. Game two between the Braves and the Giants, that is tonight, and Rob Marciano has your forecast just ahead.

Well, are you planning to catch a movie this weekend? A few thrillers and a comedy are hitting the big screen. Here's a preview.

(VIDEO CLIP FROM "ANACONDAS: THE HUNT FOR THE BLOOD ORCHID," COURTESY SCREEN GEMS)

NGUYEN: All right, here's the premise. A rare black orchid may hold the secrets of eternal youth and immortality. So, one pharmaceutical company sends an expedition to find it. But the flower is already being used by someone else; that is, a group of giant hungry snakes. And it gets its strength and power from that flower. "But go ahead," the "Chicago Tribune" says, "it's not that bad."

(BEGIN VIDEO CLIP FROM SUPERBABIES BABY GENIUSES 2, COURTESY TRIUMPH FILMS)

UNIDENTIFIED CHILD: Leave us alone!

(END VIDEO CLIP)

NGUYEN: Let's see if this one's that bad. Remember the baby geniuses trying to crack the baby talk code from 1999? Well, their adventures continue some five years later. This time, the toddlers are fighting a powerful media mogul who uses his satellite system to control the minds of the world's population. The "Atlanta Journal Constitution" calls it "cynical, cutesy and a clap trap."

(BEGIN VIDEO CLIP FROM "SUSPECT ZERO, COURTESY PARAMOUNT PICTURES)

UNIDENTIFIED MALE: It looks like a robbery/homicide. The body's back over there.

(END VIDEO CLIP)

NGUYEN: Finally, another new thriller tries to put you in the psychological labyrinth. A disgraced FBI agent is trying to redeem himself in a strange murder case. Without knowing it, he ends up searching for the FBI's most wanted man, that is Suspect Zero. The "Hollywood Reporter" says the movie "exhausts its audience rather than entertains it." Ouch. Not a good review.

GRIFFIN: So, all, in all, three very good movies to see this weekend -- Rob.

NGUYEN: Yes.

ROB MARCIANO, CNN CORRESPONDENT: Head to the theaters.

GRIFFIN: I mean I can't decide which one.

NGUYEN: It's a hard one.

MARCIANO: On one of those graphics it said Scott Baio is in one of those movies.

NGUYEN: I haven't seen Scott Baio since -- what was that show that he used to be in on television?

MARCIANO: "Happy Days?"

NGUYEN: Yes. That's what...

MARCIANO: With Fonzi and the gang?

NGUYEN: I mean a long time ago.

MARCIANO: That's right. I think he hasn't, I hear he hasn't aged.

(WEATHER REPORT)

NGUYEN: And on the Scott Baio trivia, he's also in "Charles In Charge."

MARCIANO: That's it.

NGUYEN: That's what I was thinking of.

MARCIANO: He was the leading man in "Charles."

NGUYEN: Exactly. MARCIANO: He was Charles, I believe.

NGUYEN: You have that series on DVD, right?

MARCIANO: Absolutely.

NGUYEN: All right. I'll have to borrow that one.

GRIFFIN: He's actually worked a lot. A lot of movies.

But it's time to check...

NGUYEN: We were all checking it out while you were doing your weather.

GRIFFIN: We're crazy for Scott Baio here.

MARCIANO: So you guys were obviously not listening to me. So it wouldn't be the first time.

NGUYEN: No, no, no, no. It's going to be...

MARCIANO: That's fine.

NGUYEN: It's going to be...

(CROSSTALK)

MARCIANO: Scott Baio more important than the weatherman. That's cool.

NGUYEN: All right...

MARCIANO: We'll get over it.

NGUYEN: Thanks, Rob.

MARCIANO: See you guys later.

GRIFFIN: Thank you, Rob.

Shoved into a holding pen during the Democrats convention in Boston. Will protesters have their way and their say in New York?

NGUYEN: And we'll meet a woman with an incredible story of sacrifice in Iraq. In two days, two losses; now, two funerals. That's next on CNN SATURDAY MORNING.

(BEGIN VIDEO CLIP)

POWERS: I feel like I lost my whole past with my brother and my whole future with my fiance.

(END VIDEO CLIP)

(COMMERCIAL BREAK) GRIFFIN: Two hundred fifty biker protesters, as in bikes, already arrested in New York. Will the demonstrators derail the convention and its message?

Welcome back.

I'm Drew Griffin.

NGUYEN: And I'm Betty Nguyen.

That story in just a minute.

But first, Here are the latest headlines.

Secretary of State Colin Powell won't be going to Athens this weekend for Olympic closing ceremonies. His office says it's not because of the anti-American protests there yesterday. The State Department says Powell is just too busy with pressing business back in Washington.

Is there a spy in the high levels of the Pentagon? Sources tell CNN that could be the case. They say the FBI has evidence a person who's been working at the Pentagon may be spying for Israel. Sources say an FBI probe has been going on for months now. Israel denies it.

Now to Iraq. There has been another mortar attack this morning in east Baghdad. It happened near some government offices. Two Iraqi civilians were killed. Insurgents are still fighting Iraqi and U.S. forces in the Shiite neighborhood of Baghdad called Sadr City.

In northern Iraq, a fatal attack this morning in the city of Mosul. Police say gunmen fired on a Mosul University official as she was heading to work. She was shot in the head and killed.

GRIFFIN: Protesters still plan to rally in New York's Central Park this weekend, despite what the courts are saying. Judges rejected bids by two groups to hold rallies in the park before the GOP convention, which kicks off on Monday. But protest leaders telling people show up anyway.

Some of the protests have already started. Police jailed 250 bicyclists Friday night during a rally. Police say the bikers were snarling traffic in Manhattan.

Some other protesters were brief and to the point. They laid out in Central Park, spelling the word "no." They say it's their message to President Bush.

Protesters are coming out on both sides of the major issues, including abortion. A major rally against abortion is planned, along with demonstrations to support abortion rights. Such rallies nothing new to conventions.

CNN's national correspondent Bruce Morton takes a look.

(BEGIN VIDEO TAPE) UNIDENTIFIED PROTESTERS: Power!

UNIDENTIFIED PROTESTERS: Power!

UNIDENTIFIED PROTESTERS: Power!

BRUCE MORTON, CNN CORRESPONDENT (voice-over): The protests have started. All sorts of issues this time. Back in 1968, just one issue, the Vietnam War. And the Chicago police attacked the young, anti-war protesters at the Democratic convention in what a later investigation would call a police riot.

In 1972, when George McGovern was the Democrats' nominee, the protests were odder, demonstrators taking off their clothes -- sorry, no pictures -- a vote for Chinese dictator Mao Tse-Tung for vice president and so on. They did no good either time.

JOE KLEIN, POLITICAL ANALYST: I mean when you come down to it, you know, the people who protested against the war against Vietnam were right historically, but they lost both the elections that were contested, in '68 and '72, and they turned, you know, they turned an awful lot of people off.

MORTON: The people they turned off became what analysts call Reagan Democrats, working class Americans who voted Democratic for years on economic issues, but were offended by sexual permissiveness, a party they saw as full of hippies, druggies, flower children. They voted for Reagan and 12 years passed before centrist Bill Clinton could win some of them back.

This time? Well, we've already had the first naked demo.

UNIDENTIFIED PROTESTERS: Bush, stop AIDS! Drop the debt now!

MORTON: But if the bigger anti-Bush protests scheduled for the next few days turn ugly, with violence and arrests, how would moderate Democrats and independents react?

KLEIN: There's a possibility that you're going to alienate the general public. There's a way to protest with dignity. Martin Luther King did it and he won the nation to his side.

MORTON: The demonstrators won't be trying to convert the delegates, of course. They are with their president. The demonstrators will be trying to convert voters, hoping John Kerry, as a new president, can take America in a new direction.

Bruce Morton, CNN, New York.

(END VIDEO TAPE)

GRIFFIN: And for the very latest on what's happening with the protests this weekend, CNN's Jason Carroll is going to join us live from New York.

He's coming up at 9:00 Eastern time. And stay with CNN for complete coverage of the convention. Tomorrow night, Wolf Blitzer and Judy Woodruff will be live with a convention preview from Madison Square Garden. That's at 10:00 Eastern time.

NGUYEN: Well, the government says it overestimated the nation's economic growth in the second quarter. The gross national product for April, May and June actually rose at an annual rate of 2.8 percent. That's down 2/10 of 1 percent from the original estimate made last month. The figure shows the economy cooled down considerably from the fourth quarter, when GDP hit 4 1/2 percent.

Greenspan speaks, this time to aging baby boomers, as well as government officials. The Federal Reserve chairman warns the government is promising more than it can deliver to baby boomers preparing to retire. And Greenspan suggests Medicare and Social Security should be recalibrated before it's too late for boomers to start spending less and saving more.

Alan Greenspan told a federal symposium, "As a nation, we owe it to our retirees to promise only the benefits that can be delivered. If we delay, the adjustments could be abrupt and painful."

GRIFFIN: Reportedly calm in the war battered city of Najaf today. Iraqis returned to devastated offices and shops to inspect damage from three weeks of fighting between the combined U.S.-Iraqi forces and those troops loyal to cleric Muqtada al-Sadr. Sadr and Grand Ayatollah al-Sistani hammered out a peace deal Thursday to end the fighting there.

Italy is trying to retrieve the body of an Italian journalist, the hostage who was killed in Iraq. Officials say Enzo Baldoni was killed Thursday after Italy failed to meet the captors' demand that Rome withdraw its 3,000 troops from Iraq.

NGUYEN: Now another human casualty of the conflict in Iraq. Twenty-two-year-old Rosanna Powers lost her brother and fiance within days of each other. She's burying them both within 48 hours.

Lucinda Kay of affiliate KXLY reports on two days in a double tragedy.

(BEGIN VIDEO TAPE)

POWERS: I feel like I lost my whole past with my brother and my future with my fiance.

LUCINDA KAY, KXLY CORRESPONDENT (voice-over): Rosanna Powers is a Marine corporal herself. She understands the perils of war. But this seems almost too much to bear.

POWERS: The two men I care the most about in my life and they're both gone, a day after -- one day after another. This is the worst nightmare anybody could ever imagine.

KAY: Rosanna's brother, 21-year-old Caleb Powers, was killed in Iraq August 17. Her fiance and father of her son was killed a day later. POWERS: It's twice as hard.

KAY: This town of Mansfield hasn't had to cope with a military death since World War 2. Now, nearly the entire population of 320 is grieving along with friends and family from around the nation.

UNIDENTIFIED MALE: As a Marine, Caleb could give back to those who had helped him in the past. He offered hope to children less fortunate than most. He became a hero, a mentor.

KAY: Lance Corporal Powers is remembered for his smile, his love of the Marines and his craziness.

POWERS: Growing up, I was always my brother's hero and I was his hero. Now he's my hero.

KAY: Rosanna's mind is full of memories, promises and prayer. When she leaves her brother's funeral, she'll fly to Florida and arrive just in time for her fiance's funeral. She says her son will know his uncle Caleb and dad were both heroes.

POWERS: All the dreams that we had for the future, I just want to make sure that I live those to the fullest and just remember that they did this for our future. And that's how I keep going.

(END VIDEO TAPE)

NGUYEN: Powers will bury Richard Lord, her fiance and the father of her 10-month-old, in Florida at 1:00 p.m. Eastern today.

(COMMERCIAL BREAK)

NGUYEN: Good morning, Baltimore.

This is our affiliate, WBAL, looking for lions to roam the streets today. Well, especially tonight in Baltimore when Detroit battles the Ravens in an NFL pre-season contest. Game time, 8:00 p.m. Eastern, and we will have your complete forecast coming right up.

Well, if you haven't had a chance to keep up with the news this week, that's what we're here for. Time now to rewind.

Two new reports released this week on abuse at Iraq's Abu Ghraib Prison. They found 44 instances of prisoner mistreatment. One assessment cited failures in military leadership and oversight.

Women who drank more than one sugar sweetened soft drink a day are more likely to develop diabetes than those who drink fewer than one a month. That's the finding of a new study in the "Journal of the American Medical Association." At 9:00 Eastern this morning, we'll take a hard look at the soft drink findings.

And a New York judge ruled a ban on a type of late term abortion is unconstitutional because it doesn't provide for an exception for cases in which the mother's health is endangered. Plus, more Americans are poor and uninsured. A Census Bureau report says for the year 2003, 35.8 million people were living in poverty, 18 percent of them children. More people lacked health insurance, as well, 45 million last year. That is up from 43.5 million.

Tomorrow, we'll fast forward to the week ahead, so keep it here.

GRIFFIN: Betty, other stories -- oh, we're going to toss it to Rob Marciano.

NGUYEN: Yes, we're going to talk about a little weather right now.

Good morning -- Rob.

MARCIANO: Hi, guys.

You guys have been talking a lot of sports, it looks like, the past 45 minutes. You're getting all fired up for football season.

GRIFFIN: There you go.

MARCIANO: I like that.

(WEATHER REPORT)

GRIFFIN: Other stories making headlines across America this Saturday morning, federal officials now at the scene of a deadly fraternity house fire. This happened at the University of Mississippi. The fire at Alpha Tao Omega left three people dead, three students there. ATF officials working to find the case of that now.

Nearly a half foot of rain, as Rob said, fell in just a few hours. That's what people had to deal with on both the Missouri and Kansas City sides of Kansas City. Police closed off streets and urged people along one roadway to evacuate.

In New York, police officers aren't the only ones with protection against violence. The Transit Authority's police dogs are now wearing bulletproof vests. The woman who donated them says she wanted to make sure the dogs were protected before the GOP convention starts.

And in California, Arnold and the state having an open house and a cleaning house, a garage sale of sorts. It's the second day of what's touted as the massive garage sale in Sacramento. The state emptying its warehouses of excess from cars to espresso makers in an effort to help balance the state budget.

Elsewhere in California, did prosecution find a smoking gun in the taped phone calls in Scott Peterson's trial? Our legal eagles are on this case, as well as the latest in the Kobe Bryant trial. That's coming your way in the next hour of CNN SATURDAY MORNING.

NGUYEN: Plus, ready, set, hike? College football is set to start on this last weekend of summer. We'll tell you what to look forward to this fall. Our weekly segment, "Beyond the Game," that is coming up straight ahead.

(COMMERCIAL BREAK)

NGUYEN: As you all know, the Summer Games end tomorrow. But diehard sports fans, don't despair. When the action in Athens ends, a grand slam tennis tournament and U.S. college football, they begin.

Rick Horrow is a CNN sports business analyst and author of "When The Game Is On The Line."

This morning, he is in West Palm Beach, Florida to tell us about the business of these sports -- good morning to you.

RICK HORROW, CNN SPORTS BUSINESS ANALYST: Hey, we've got four blood sports going on this week -- Olympics, politics, basketball, football, golf. We've got everything going on.

NGUYEN: We have everything.

Let's talk money this morning.

First up, the Olympics.

Will Greece recoup the $12 billion that it spent on these games?

HORROW: Well, the cynics say it's going to bankrupt the country for years to come. The practical people say that the legacy that started in 776 B.C., you really can't quantify that impact -- 77,000 jobs, $10 billion or so of economic impact. And, of course, Greece is now on the map for a successful Olympic Games, with transportation and facilities and excitement galore. NBC is happy. Others are happy.

And so it is hard to measure. But we think Greece is going to come out quite well. Eighty percent of the people who were polled, Greeks, very satisfied with the Olympics. And I think the figure will be even higher as we get farther away from the games.

NGUYEN: As we talk figures, what does this say for future host cities? Will they be spending way too much and not reaping the rewards?

HORROW: Well, they'll be spending a lot. You know, Beijing is going to spend $30 billion to make its Chinese statement to the Western world and the like. But they'll get help. You know, NBC has a $900 million commitment for those games; a $600 million commitment for Turin in Italy. And the bottom line is the big five, including New York, has a major bid for 2012 -- the most money for any potential candidate spent for Olympic bidding in the history of the games. They want them and they get the impact from them.

NGUYEN: You mentioned NBC.

How are these corporate sponsors faring in these games? Are they making a pretty penny? HORROW: Yes, they're doing all right. But they spent a billion dollars to get to that point. You know, 71 percent of people surveyed say when they see these athletes play in the games and see commercials, they think patriotism and perseverance, not greed. And, of course, that translates into buying power.

Corporations are even trying to ambush each other. Miller Brewing, Miller beer, who is not an official Olympic sponsor, had a print ad with a taste test from Athens -- Georgia, not Greece.

NGUYEN: We're running out of time.

We can't talk too much about the U.S. Open, but we do want to talk about college football, because it starts this weekend.

How big of a business is this?

HORROW: It's a huge business. We teased a $5 billion business. And the bottom line is TV, TV and more TV. You know, 40 percent of the programs have a profit largely because of television. And ABC just signed a major $300 million deal with the Rose Bowl, including two national championship games.

Now, hold onto your seats, because when it starts this weekend in a stretch, for example, from late October to mid-November, there are over 19 nights, 20 nights of straight football night after night. Is it over...

NGUYEN: Nineteen!

HORROW: Yes. Is it over saturation? Probably not. But it generates a lot of dollars for television. Everybody is excited about the way TV dollars fuel sponsorships and then put the money in the coffers for college football.

NGUYEN: And who doesn't like college football? Go Horns, by the way. I had to throw that in there.

All right, Rick Horrow, thank you so much this morning.

HORROW: You stuck that in there.

GRIFFIN: We'll talk to you next week.

NGUYEN: I had to sneak it in there. I'm a Longhorn.

All right, Rick, thank you.

And since my sports lingo is pretty lame, Drew, I'm just going to toss it back to you.

GRIFFIN: Betty, thanks for sharing your Texas roots with us.

We've been asking you this morning which Olympic sport, in your opinion, is the most difficult to score or judge? We're going to read some of those replies next on CNN SATURDAY MORNING. If you still want to get in on this, our address is wam@cnn.com. It's not W-A-M, it's WEEKEND A.M.

The 2004 Olympic Games draw to a close tomorrow, ending more than two weeks of often outstanding athletic performs. And from the blur of events emerged eternal moments of singular clarity.

(COMMERCIAL BREAK)

GRIFFIN: What a crazy! The 60th installment of the compilation CD. Now, that's what I call music. It's on top of the Billboard charts and that song, Outkast, "Hey 'Ya!," one of the hits on that album.

Also in the top five, Ashlee Simpson. She goes down to number five. She was at number one last week. "Musicology," the Prince album, is up there, too. He gives out a copy of the CD with each concert ticket. Did you know that?

NGUYEN: Hey.

GRIFFIN: So I think that might be skewed.

The new super group of rap icon's 213, area code "The Hard Way" makes a debut. And Usher from Atlantic climbs back into the top five with "Confessions."

NGUYEN: I want to have a confession. You should have seen Drew dancing just a while ago. Whoo, it was a frightening sight. And, you know, speaking of "Wows of the Week," we're going to go to our "Wows of the Week."

A recent video worth a second look. First up is way up. Tourists in Britain's Buckingham Palace may be startled by the sight of this guardsman towering over his peers. Twenty-one-year-old Martin Walters is 7'3." That's 9' tall when he puts on the bearskin hat.

In Valencia, Spain, fruit and nuts -- folks going nuts every year, pasting each other with tomatoes. It's a tradition that dates back to 1945. The annual bash lasts for two hours, then the ankle deep mess, well, it's all hosed off.

And in Columbia, South Carolina, a very close call for the driver of a cement mixer. The vehicle smashed through a bridge barrier and sank in the river like, well, concrete, of course. The driver was banged up, but not seriously hurt. The mixer was battered beyond recognition.

GRIFFIN: All right, our e-mail question, which is the most difficult to score in the Olympics? John says synchronized swimming. "It's got be the most difficult," he says. "How do judges see underwater to grade what they are doing when they are upside down?" I'm not sure I would want that job.

NGUYEN: That was an interesting point.

GRIFFIN: You can continue writing which Olympic sport is the most difficult to score. Maybe they have one of those shamu tanks, you know?

NGUYEN: I wasn't expecting that one. Yes, right. There's always a camera.

Well, the next hour of CNN SATURDAY MORNING begins right now.

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 28, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Well, good morning to you.
From the CNN Center right here in Atlanta, this is CNN SATURDAY MORNING.

It is August 28.

7:00 a.m. at the Pentagon, 2:00 p.m. at the Olympic stadium in Athens.

Good morning.

I'm Betty Nguyen.

DREW GRIFFIN, CNN ANCHOR: I'm Drew Griffin.

Thanks for being with us.

Here's our top stories this morning.

The investigation of a possible spy at the Pentagon. The FBI says someone working at a high level there may be an agent for Israel. One official says the person is in a position to influence policy toward Iraq and Iran. More on this in just a minute.

Secretary of State Colin Powell canceled his trip to Athens. He was going to attend Sunday's closing ceremonies. The press of business in Washington, cited specifically, the war in Iraq and the crisis in Sudan.

New violence this morning in eastern Baghdad. Mortar rounds exploding near several government offices, killing two Iraqi civilians. The explosions behind the Iraqi Olympic League building. That is near the ministries of interior, oil and water resources.

New York police clamped down on bike protesters last night. Thousands of bicyclists left Union Square Park for a pre-Republican convention tour of Manhattan, including Madison Square Garden, the convention site. It was sponsored by an environmental group. Police arrested 250 of the bicyclists at various locations, accusing them of massive disruptions. The cyclists deny that.

Keeping you informed, CNN, the most trusted name in news.

NGUYEN: And here's what's ahead this hour.

We have more arresting images from New York City just days before the Republican national convention. Protesters tried to rain on the parade of the grand old party. We'll have the latest on protests, politics and police presence.

Also, they've used might and muscle to muster medals. The 28th Olympiad is coming to a close and we'll have the latest on who's finished and who is still competing.

And toying around with tragedy? This children's candy has what some consider an offensive addition. Some angry Florida residents say it is not for child's play. That is straight ahead.

GRIFFIN: Up first this morning, the Washington spy case. Has a mole burrowed into the Pentagon to spy for Israel? The FBI investigating that.

And national security correspondent David Ensor has the details.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): The FBI has evidence there may be a spy for Israel who's been working at high levels in the Pentagon, senior U.S. officials confirm to CNN.

One of the officials says the Israeli mole could have been in a position to influence Bush administration policy towards Iran and Iraq. Sources say the FBI investigation has been going on for many months and that more than one government employee is under investigation.

CBS News, which first reported the story, says the FBI has evidence against the suspect, including wiretaps and photographs. The network said the alleged spy has ties to two senior Bush administration officials, Deputy Secretary of Defense Paul Wolfowitz and Undersecretary of Defense Douglas Fife. The government official says the suspect is an analyst at the Pentagon. An FBI spokesman said the bureau has no comment on the report.

An Israeli Embassy spokesman, reached by CNN, said the report is wrong. "We categorically deny these allegations. They are completely false and outrageous."

Officials are saying that the alleged spy passed classified documents to an American lobbying organization with ties to Israel, which passed them on to the Jewish state.

The group, the American Israel Public Affairs Committee has also issued a statement saying that, "Any allegation of criminal conduct by the organization or its employees is baseless and false." AIPAC went on to say, "We are fully cooperating with the government authorities and will continue to do so."

In fact, sources say, the FBI has interviewed two AIPAC employees in the case. This is not the first time Israel is alleged to have spied on its friend the United States. Former Navy intelligence analyst Jonathan Pollard is serving a life sentence for espionage on Israel's behalf.

(on camera): Washington insiders note that it's not unusual for friendly governments to have access to certain classified information, so if these allegations are correct, not everyone involved may have thought they were participating in espionage. Still, one U.S. source tonight is calling this case a very serious matter.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

GRIFFIN: Since this story broke, the Department of Defense released this statement. It says it's cooperating with the Department of Justice on the matter for an extended period of time. "It is the DOD's understanding that the investigation within the Department of Defense is limited in scope."

We will be reporting live from the Pentagon throughout the day on this development. The first report at 9:00 a.m. Eastern here on CNN SATURDAY MORNING.

NGUYEN: Well, the Republican convention won't gavel to order until Monday evening. But protesters are already in New York to spread their message. A massive protest by Planned Parenthood is set for later today, as well as a counter march by anti-abortion supporters.

Now, yesterday, about 5,000 bicyclists chanting anti-Bush slogans snaked through the borough of Manhattan. They also went past Madison Square Garden and the RNC convention site, which is Madison Square Garden. The 250 bikers were arrested, mostly, though, for disrupting traffic.

A group called Mothers Opposing Bush pushed strollers across Brooklyn Bridge in another protest. They complained money for a preemptive war takes money from childcare.

The nearly 5,000 delegates and alternates inside the Garden will focus on the party platform and nomination of its candidates and they'll listen to rousing speeches by Republican stars.

As Bob Franken reports, the GOP may tilt more toward the center at this party gathering.

(BEGIN VIDEOTAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Critics say the lineup is like putting lipstick on a pig. Compassionate conservatives, yes, passionate ones, no. From night one, the party will be putting what it regards as its best faces forward, or best gloss, depending on the point of view. It doesn't matter says the campaign chairman.

MARC RACICOT, BUSH CAMPAIGN CHAIRMAN: So I think there's just a remarkable difference for the American people between the president and what he has to offer, and his opposition in terms of their clarity, their consistency and their steady hand.

FRANKEN: So, Senator John McCain, who has morphed recently from the picture of Bush irritant to pictures of Bush embraced, is at the podium Monday evening. So is Rudy Giuliani, another of the so-called moderates. And a reminder of the September 11th attacks here.

RUDY GIULIANI, FMR. NEW YORK MAYOR: We need someone who is going to understand that we have to remain firm against terrorists.

FRANKEN: Tuesday is another night of stars, quite literally, with California Governor Arnold Schwarzenegger, certainly a muscular party figure, but conservatives say he is weak on gun control and abortion. Maryland Lieutenant Governor Michael Steele will also speak that night. Who's that? Well, that was the same question everyone asked about Illinois Democratic Senate candidate Barack Obama before he spoke to his convention.

And that's not all. First lady Laura Bush also goes gently into the night Tuesday. Wednesday, the warm Republican embrace includes a Democrat, a nominal one in many eyes, Georgia's Senator Zell Miller.

Then Vice President Cheney, so the conservatives finally get their red meat man. And don't expect anything in his speech about gay rights. And then, of course, Thursday's big finish, President Bush, with a variation on his theme: Bush good, John Kerry not good.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're going to beat him come November.

FRANKEN: The president will deliver his remarks from a specially-constructed theater in the round stage.

(END VIDEOTAPE)

FRANKEN: Like the Democratic convention, this is going to be extreme political theater. But, with many of the major characters out of sight.

Bob Franken, CNN, New York.

(END VIDEO TAPE)

NGUYEN: Well, the 2000 election taught us all about what the constitution really means. When it comes to winning the presidential race, the electoral vote trumps the popular vote. A CNN analysis shows President Bush has a small lead over Senator John Kerry in the Electoral College and found of the election were held today, Bush would get 274 electoral votes compared to 264 for Kerry. Now, a candidate needs 270 electoral votes to win the presidency.

Bush remains strong, though, across the South, in the Rocky Mountain and Great Plains states. Kerry leads in the Northeast and West. The industrial Midwest states? Well, they are still a tossup. GRIFFIN: And stay with CNN for all your convention coverage. It begins tomorrow with an in depth look at the president. CNN present "The Mission of George W. Bush" at 8:00 p.m. Eastern, followed by a special live edition of "LARRY KING LIVE." Then at 10:00 Eastern, it's Wolf Blitzer and Judy Woodruff for an "AMERICA VOTES 2004" special, a preview of the Republican convention.

The Internet has become a critical part of the candidates' campaign. The Web is now crowded with sites offering everything from the next political rally to candidates' stands on various issues. Or, how about this one, a Web site that shows how much your neighbors are contributing to presidential candidates. All you have to do is plug in a zip code or someone's name. It's one of the political sites we'll feature tomorrow morning when we debut a new segment called "Best of the Web" to help you navigate the Internet. That's on CNN SUNDAY MORNING at 9:00 Eastern.

NGUYEN: In the war on terror, the FBI and Homeland Security Department say al Qaeda may be looking for a military target and it might try to attack a veterans affairs hospital. In a nationwide bulletin, the government warns police and security personnel to watch for suspicious activities at V.A. hospitals. Authorities say there's no credible intelligence about a specific threat.

Russian officials are reportedly cracking down on the airline industry. Security officials think at least one of this week's two plane crashed was an act of terror. They found traces of explosives on one of the downed jets. A Chechen rebel leader has denied any involvement in the mishap.

The U.S. military has wrapped up hearings for four detainees at Guantanamo Bay, Cuba. They're accused of terrorism. More proceedings are still ahead. Prosecutors say charges should be brought against nine other suspects.

GRIFFIN: A state-of-the-art anti-terror tool looks like a sport utility vehicle. The Port Authority of New York and New Jersey has a new security device that can sniff out radioactive material. It's a modified SUV worth $2.5 million. It'll conduct random inspections of commercial vehicles there.

NGUYEN: This is an interesting one. Florida residents are upset over a little trinket that depicts an enormous tragedy. This child's toy, check it out, shows an airplane that appears to be crashing into the World Trade Center on 9/11. A candy wholesaler is recalling some 14,000 bags of candy in central Florida that contain the trinket. The candy company says it bought the toys from an import company and hadn't noticed what it depicted until they received complaints. And I can imagine they received plenty of those.

(BEGIN VIDEO CLIP)

ROSANNA POWERS: The two men I cared the most about in my life and they're both gone, one day after another.

(END VIDEO CLIP) GRIFFIN: She's lost two loved ones in the fight for Iraq within days. A double dose of tragedy in Florida.

NGUYEN: Plus, storms in Kansas and thousands lose power. We'll have an update.

GRIFFIN: And a Dream Team nightmare they just can't wake up from. We'll go live to the Greek capital when CNN SATURDAY MORNING returns.

NGUYEN: But first, a musical and a feature film about Jesus Christ comes to DVD on Tuesday. Andrew Lloyd Webber's "Jesus Christ Superstar and Mel Gibson's "The Passion of the Christ" are out. Also, for ballet lovers, Sergei Prokofiev's "Romeo and Juliet."

And do you want a little suspense? "Twisted," starring Ashley Judd and Samuel L. Jackson is out. New in the movie category, a couple of thrillers and a comedy. We'll have a preview in our "Now Showing" segment. That's just a little bit later this hour.

(COMMERCIAL BREAK)

GRIFFIN: You can expect dozens of demonstrations in New York during the GOP convention. Politics and protests, of course, not exactly strange bedfellows. We're going to have a trip back in time to show you what was happening here. That's coming up.

And at 8:00 Eastern, whose DNA is it? The Kobe Bryant trial on the docket in our "Legal Briefs." That's later.

(COMMERCIAL BREAK)

NGUYEN: The Summer Games are almost to the finish line in Athens. Here's a live look at the Greek capital. We'll go live there for a report in a little bit.

But first, checking our top stories.

Senior U.S. officials tell CNN there is a possible spy working at the Pentagon. Officials say the suspect allegedly passed classified documents to Israel through a pro-Israeli lobbying group. Israeli officials deny the story.

Lawyers on both sides in the Kobe Bryant sexual assault case are spending the weekend reviewing 300 questionnaires filed or filled out by potential jurors. Fifty people will be called back Monday for more questioning.

State election officials in Florida can't give 15 counties with touch screen voting machines an exemption from a state law requiring manual recounts in close elections. That's the ruling from an administrative judge.

And, a close call for the driver of this cement truck. Check it out. The story of his rescue in our "Wows of the Week" a little later this hour. GRIFFIN: That Dream Team, well, it ain't going to do it. And one sprinter's dreams of gold turns into a nightmare.

For the latest on the Olympic action in Athens, we go to CNN's Mark McKay -- Mark, what happened to these guys?

MARK MCKAY, CNN CORRESPONDENT: Well, you know, expectations are everything. They came here, lost a couple of games. The rumbling began and then they really had a chance to prove themselves last night, but not since the Seoul Olympics back in 1988, Drew, will the United States have a chance to play for gold.

Later today here in Athens, the best they will be able to do is take home the bronze, after Team USA lost to Argentina 89-81 in Friday's semifinals. Manu Ginobilli of the NBA San Antonio Spurs scored 29 points against many of his professional counterparts. Italy knocked out Lithuania. That is the team the U.S. will meet for bronze a little later today in Athens.

Disappointing games, of course, for Marion Jones. She came here with expectations of perhaps medaling in two events. It didn't happen. About an hour after she finished fifth in the long jump last night at Olympic Stadium, Jones went out as a member of the relay squad, but on the handoff, the baton handoff was not clean to Lauryn Williams. She apparently left her post a little too early. Jamaica won the gold in the 400-meter relay. The United States failed to medal.

Now, as disappointing as these games were for Marion Jones, it's basically been the opposite here in Athens for Justin Gatlin. And he gets a chance at yet another Olympic medal tonight at Olympic stadium. Gatlin, of course, won the gold medal in the 100 meters. He pulled up with bronze in the 200. He will be part of the 4 by 100-meter relay squad tonight.

A big night of athletics, Drew, at Olympic stadium, as we now sit on the night before the end of the 2004 Summer Games. Back to you.

GRIFFIN: Mark, is the U.S. Olympic Committee happy with the results of these Olympics? They were shooting for, what, 100 medals?

MCKAY: Yes, I think so. Just, it's funny you mention that, Drew. I got the count just before we went on. Going into today, 90 medals overall. So they're pretty close to their expectations, 29 of them gold. China, what a showing at these games, Drew; 57 overall medals, 27 of those were gold going into today's competition. It sets up the Chinese nice to hold the next Summer Games in 2008 in Beijing, don't you think?

GRIFFIN: I think so. Terrific stuff. And a safe Olympics so far.

Good, Mark.

Thank you for that. Well, a boon or a bust? Which Olympic sport do you think is the most difficult for judges to score? Send us your e-mails at wam@cnn.com. We're going to read your answers throughout the morning.

NGUYEN: I have a guess. Men's gymnastics. That's got to be on the list somewhere.

GRIFFIN: Well, have you seen some of the diving scores?

NGUYEN: Yes, that's pretty tight, too, in those.

Well, don't promise what you cannot deliver. The Federal Reserve chief warns the president and Congress once again and tells baby boomers they'll have to tighten their belts.

GRIFFIN: From economic forecasts to weather predictions.

Rob Marciano has a preview.

(WEATHER REPORT)

(COMMERCIAL BREAK)

NGUYEN: Well, good morning, Atlanta.

This is our back yard. You can expect near perfect weather tonight as Barry Bonds continues his march toward baseball immortality. He hit home run number 694 last night, but the Braves won the game. Game two between the Braves and the Giants, that is tonight, and Rob Marciano has your forecast just ahead.

Well, are you planning to catch a movie this weekend? A few thrillers and a comedy are hitting the big screen. Here's a preview.

(VIDEO CLIP FROM "ANACONDAS: THE HUNT FOR THE BLOOD ORCHID," COURTESY SCREEN GEMS)

NGUYEN: All right, here's the premise. A rare black orchid may hold the secrets of eternal youth and immortality. So, one pharmaceutical company sends an expedition to find it. But the flower is already being used by someone else; that is, a group of giant hungry snakes. And it gets its strength and power from that flower. "But go ahead," the "Chicago Tribune" says, "it's not that bad."

(BEGIN VIDEO CLIP FROM SUPERBABIES BABY GENIUSES 2, COURTESY TRIUMPH FILMS)

UNIDENTIFIED CHILD: Leave us alone!

(END VIDEO CLIP)

NGUYEN: Let's see if this one's that bad. Remember the baby geniuses trying to crack the baby talk code from 1999? Well, their adventures continue some five years later. This time, the toddlers are fighting a powerful media mogul who uses his satellite system to control the minds of the world's population. The "Atlanta Journal Constitution" calls it "cynical, cutesy and a clap trap."

(BEGIN VIDEO CLIP FROM "SUSPECT ZERO, COURTESY PARAMOUNT PICTURES)

UNIDENTIFIED MALE: It looks like a robbery/homicide. The body's back over there.

(END VIDEO CLIP)

NGUYEN: Finally, another new thriller tries to put you in the psychological labyrinth. A disgraced FBI agent is trying to redeem himself in a strange murder case. Without knowing it, he ends up searching for the FBI's most wanted man, that is Suspect Zero. The "Hollywood Reporter" says the movie "exhausts its audience rather than entertains it." Ouch. Not a good review.

GRIFFIN: So, all, in all, three very good movies to see this weekend -- Rob.

NGUYEN: Yes.

ROB MARCIANO, CNN CORRESPONDENT: Head to the theaters.

GRIFFIN: I mean I can't decide which one.

NGUYEN: It's a hard one.

MARCIANO: On one of those graphics it said Scott Baio is in one of those movies.

NGUYEN: I haven't seen Scott Baio since -- what was that show that he used to be in on television?

MARCIANO: "Happy Days?"

NGUYEN: Yes. That's what...

MARCIANO: With Fonzi and the gang?

NGUYEN: I mean a long time ago.

MARCIANO: That's right. I think he hasn't, I hear he hasn't aged.

(WEATHER REPORT)

NGUYEN: And on the Scott Baio trivia, he's also in "Charles In Charge."

MARCIANO: That's it.

NGUYEN: That's what I was thinking of.

MARCIANO: He was the leading man in "Charles."

NGUYEN: Exactly. MARCIANO: He was Charles, I believe.

NGUYEN: You have that series on DVD, right?

MARCIANO: Absolutely.

NGUYEN: All right. I'll have to borrow that one.

GRIFFIN: He's actually worked a lot. A lot of movies.

But it's time to check...

NGUYEN: We were all checking it out while you were doing your weather.

GRIFFIN: We're crazy for Scott Baio here.

MARCIANO: So you guys were obviously not listening to me. So it wouldn't be the first time.

NGUYEN: No, no, no, no. It's going to be...

MARCIANO: That's fine.

NGUYEN: It's going to be...

(CROSSTALK)

MARCIANO: Scott Baio more important than the weatherman. That's cool.

NGUYEN: All right...

MARCIANO: We'll get over it.

NGUYEN: Thanks, Rob.

MARCIANO: See you guys later.

GRIFFIN: Thank you, Rob.

Shoved into a holding pen during the Democrats convention in Boston. Will protesters have their way and their say in New York?

NGUYEN: And we'll meet a woman with an incredible story of sacrifice in Iraq. In two days, two losses; now, two funerals. That's next on CNN SATURDAY MORNING.

(BEGIN VIDEO CLIP)

POWERS: I feel like I lost my whole past with my brother and my whole future with my fiance.

(END VIDEO CLIP)

(COMMERCIAL BREAK) GRIFFIN: Two hundred fifty biker protesters, as in bikes, already arrested in New York. Will the demonstrators derail the convention and its message?

Welcome back.

I'm Drew Griffin.

NGUYEN: And I'm Betty Nguyen.

That story in just a minute.

But first, Here are the latest headlines.

Secretary of State Colin Powell won't be going to Athens this weekend for Olympic closing ceremonies. His office says it's not because of the anti-American protests there yesterday. The State Department says Powell is just too busy with pressing business back in Washington.

Is there a spy in the high levels of the Pentagon? Sources tell CNN that could be the case. They say the FBI has evidence a person who's been working at the Pentagon may be spying for Israel. Sources say an FBI probe has been going on for months now. Israel denies it.

Now to Iraq. There has been another mortar attack this morning in east Baghdad. It happened near some government offices. Two Iraqi civilians were killed. Insurgents are still fighting Iraqi and U.S. forces in the Shiite neighborhood of Baghdad called Sadr City.

In northern Iraq, a fatal attack this morning in the city of Mosul. Police say gunmen fired on a Mosul University official as she was heading to work. She was shot in the head and killed.

GRIFFIN: Protesters still plan to rally in New York's Central Park this weekend, despite what the courts are saying. Judges rejected bids by two groups to hold rallies in the park before the GOP convention, which kicks off on Monday. But protest leaders telling people show up anyway.

Some of the protests have already started. Police jailed 250 bicyclists Friday night during a rally. Police say the bikers were snarling traffic in Manhattan.

Some other protesters were brief and to the point. They laid out in Central Park, spelling the word "no." They say it's their message to President Bush.

Protesters are coming out on both sides of the major issues, including abortion. A major rally against abortion is planned, along with demonstrations to support abortion rights. Such rallies nothing new to conventions.

CNN's national correspondent Bruce Morton takes a look.

(BEGIN VIDEO TAPE) UNIDENTIFIED PROTESTERS: Power!

UNIDENTIFIED PROTESTERS: Power!

UNIDENTIFIED PROTESTERS: Power!

BRUCE MORTON, CNN CORRESPONDENT (voice-over): The protests have started. All sorts of issues this time. Back in 1968, just one issue, the Vietnam War. And the Chicago police attacked the young, anti-war protesters at the Democratic convention in what a later investigation would call a police riot.

In 1972, when George McGovern was the Democrats' nominee, the protests were odder, demonstrators taking off their clothes -- sorry, no pictures -- a vote for Chinese dictator Mao Tse-Tung for vice president and so on. They did no good either time.

JOE KLEIN, POLITICAL ANALYST: I mean when you come down to it, you know, the people who protested against the war against Vietnam were right historically, but they lost both the elections that were contested, in '68 and '72, and they turned, you know, they turned an awful lot of people off.

MORTON: The people they turned off became what analysts call Reagan Democrats, working class Americans who voted Democratic for years on economic issues, but were offended by sexual permissiveness, a party they saw as full of hippies, druggies, flower children. They voted for Reagan and 12 years passed before centrist Bill Clinton could win some of them back.

This time? Well, we've already had the first naked demo.

UNIDENTIFIED PROTESTERS: Bush, stop AIDS! Drop the debt now!

MORTON: But if the bigger anti-Bush protests scheduled for the next few days turn ugly, with violence and arrests, how would moderate Democrats and independents react?

KLEIN: There's a possibility that you're going to alienate the general public. There's a way to protest with dignity. Martin Luther King did it and he won the nation to his side.

MORTON: The demonstrators won't be trying to convert the delegates, of course. They are with their president. The demonstrators will be trying to convert voters, hoping John Kerry, as a new president, can take America in a new direction.

Bruce Morton, CNN, New York.

(END VIDEO TAPE)

GRIFFIN: And for the very latest on what's happening with the protests this weekend, CNN's Jason Carroll is going to join us live from New York.

He's coming up at 9:00 Eastern time. And stay with CNN for complete coverage of the convention. Tomorrow night, Wolf Blitzer and Judy Woodruff will be live with a convention preview from Madison Square Garden. That's at 10:00 Eastern time.

NGUYEN: Well, the government says it overestimated the nation's economic growth in the second quarter. The gross national product for April, May and June actually rose at an annual rate of 2.8 percent. That's down 2/10 of 1 percent from the original estimate made last month. The figure shows the economy cooled down considerably from the fourth quarter, when GDP hit 4 1/2 percent.

Greenspan speaks, this time to aging baby boomers, as well as government officials. The Federal Reserve chairman warns the government is promising more than it can deliver to baby boomers preparing to retire. And Greenspan suggests Medicare and Social Security should be recalibrated before it's too late for boomers to start spending less and saving more.

Alan Greenspan told a federal symposium, "As a nation, we owe it to our retirees to promise only the benefits that can be delivered. If we delay, the adjustments could be abrupt and painful."

GRIFFIN: Reportedly calm in the war battered city of Najaf today. Iraqis returned to devastated offices and shops to inspect damage from three weeks of fighting between the combined U.S.-Iraqi forces and those troops loyal to cleric Muqtada al-Sadr. Sadr and Grand Ayatollah al-Sistani hammered out a peace deal Thursday to end the fighting there.

Italy is trying to retrieve the body of an Italian journalist, the hostage who was killed in Iraq. Officials say Enzo Baldoni was killed Thursday after Italy failed to meet the captors' demand that Rome withdraw its 3,000 troops from Iraq.

NGUYEN: Now another human casualty of the conflict in Iraq. Twenty-two-year-old Rosanna Powers lost her brother and fiance within days of each other. She's burying them both within 48 hours.

Lucinda Kay of affiliate KXLY reports on two days in a double tragedy.

(BEGIN VIDEO TAPE)

POWERS: I feel like I lost my whole past with my brother and my future with my fiance.

LUCINDA KAY, KXLY CORRESPONDENT (voice-over): Rosanna Powers is a Marine corporal herself. She understands the perils of war. But this seems almost too much to bear.

POWERS: The two men I care the most about in my life and they're both gone, a day after -- one day after another. This is the worst nightmare anybody could ever imagine.

KAY: Rosanna's brother, 21-year-old Caleb Powers, was killed in Iraq August 17. Her fiance and father of her son was killed a day later. POWERS: It's twice as hard.

KAY: This town of Mansfield hasn't had to cope with a military death since World War 2. Now, nearly the entire population of 320 is grieving along with friends and family from around the nation.

UNIDENTIFIED MALE: As a Marine, Caleb could give back to those who had helped him in the past. He offered hope to children less fortunate than most. He became a hero, a mentor.

KAY: Lance Corporal Powers is remembered for his smile, his love of the Marines and his craziness.

POWERS: Growing up, I was always my brother's hero and I was his hero. Now he's my hero.

KAY: Rosanna's mind is full of memories, promises and prayer. When she leaves her brother's funeral, she'll fly to Florida and arrive just in time for her fiance's funeral. She says her son will know his uncle Caleb and dad were both heroes.

POWERS: All the dreams that we had for the future, I just want to make sure that I live those to the fullest and just remember that they did this for our future. And that's how I keep going.

(END VIDEO TAPE)

NGUYEN: Powers will bury Richard Lord, her fiance and the father of her 10-month-old, in Florida at 1:00 p.m. Eastern today.

(COMMERCIAL BREAK)

NGUYEN: Good morning, Baltimore.

This is our affiliate, WBAL, looking for lions to roam the streets today. Well, especially tonight in Baltimore when Detroit battles the Ravens in an NFL pre-season contest. Game time, 8:00 p.m. Eastern, and we will have your complete forecast coming right up.

Well, if you haven't had a chance to keep up with the news this week, that's what we're here for. Time now to rewind.

Two new reports released this week on abuse at Iraq's Abu Ghraib Prison. They found 44 instances of prisoner mistreatment. One assessment cited failures in military leadership and oversight.

Women who drank more than one sugar sweetened soft drink a day are more likely to develop diabetes than those who drink fewer than one a month. That's the finding of a new study in the "Journal of the American Medical Association." At 9:00 Eastern this morning, we'll take a hard look at the soft drink findings.

And a New York judge ruled a ban on a type of late term abortion is unconstitutional because it doesn't provide for an exception for cases in which the mother's health is endangered. Plus, more Americans are poor and uninsured. A Census Bureau report says for the year 2003, 35.8 million people were living in poverty, 18 percent of them children. More people lacked health insurance, as well, 45 million last year. That is up from 43.5 million.

Tomorrow, we'll fast forward to the week ahead, so keep it here.

GRIFFIN: Betty, other stories -- oh, we're going to toss it to Rob Marciano.

NGUYEN: Yes, we're going to talk about a little weather right now.

Good morning -- Rob.

MARCIANO: Hi, guys.

You guys have been talking a lot of sports, it looks like, the past 45 minutes. You're getting all fired up for football season.

GRIFFIN: There you go.

MARCIANO: I like that.

(WEATHER REPORT)

GRIFFIN: Other stories making headlines across America this Saturday morning, federal officials now at the scene of a deadly fraternity house fire. This happened at the University of Mississippi. The fire at Alpha Tao Omega left three people dead, three students there. ATF officials working to find the case of that now.

Nearly a half foot of rain, as Rob said, fell in just a few hours. That's what people had to deal with on both the Missouri and Kansas City sides of Kansas City. Police closed off streets and urged people along one roadway to evacuate.

In New York, police officers aren't the only ones with protection against violence. The Transit Authority's police dogs are now wearing bulletproof vests. The woman who donated them says she wanted to make sure the dogs were protected before the GOP convention starts.

And in California, Arnold and the state having an open house and a cleaning house, a garage sale of sorts. It's the second day of what's touted as the massive garage sale in Sacramento. The state emptying its warehouses of excess from cars to espresso makers in an effort to help balance the state budget.

Elsewhere in California, did prosecution find a smoking gun in the taped phone calls in Scott Peterson's trial? Our legal eagles are on this case, as well as the latest in the Kobe Bryant trial. That's coming your way in the next hour of CNN SATURDAY MORNING.

NGUYEN: Plus, ready, set, hike? College football is set to start on this last weekend of summer. We'll tell you what to look forward to this fall. Our weekly segment, "Beyond the Game," that is coming up straight ahead.

(COMMERCIAL BREAK)

NGUYEN: As you all know, the Summer Games end tomorrow. But diehard sports fans, don't despair. When the action in Athens ends, a grand slam tennis tournament and U.S. college football, they begin.

Rick Horrow is a CNN sports business analyst and author of "When The Game Is On The Line."

This morning, he is in West Palm Beach, Florida to tell us about the business of these sports -- good morning to you.

RICK HORROW, CNN SPORTS BUSINESS ANALYST: Hey, we've got four blood sports going on this week -- Olympics, politics, basketball, football, golf. We've got everything going on.

NGUYEN: We have everything.

Let's talk money this morning.

First up, the Olympics.

Will Greece recoup the $12 billion that it spent on these games?

HORROW: Well, the cynics say it's going to bankrupt the country for years to come. The practical people say that the legacy that started in 776 B.C., you really can't quantify that impact -- 77,000 jobs, $10 billion or so of economic impact. And, of course, Greece is now on the map for a successful Olympic Games, with transportation and facilities and excitement galore. NBC is happy. Others are happy.

And so it is hard to measure. But we think Greece is going to come out quite well. Eighty percent of the people who were polled, Greeks, very satisfied with the Olympics. And I think the figure will be even higher as we get farther away from the games.

NGUYEN: As we talk figures, what does this say for future host cities? Will they be spending way too much and not reaping the rewards?

HORROW: Well, they'll be spending a lot. You know, Beijing is going to spend $30 billion to make its Chinese statement to the Western world and the like. But they'll get help. You know, NBC has a $900 million commitment for those games; a $600 million commitment for Turin in Italy. And the bottom line is the big five, including New York, has a major bid for 2012 -- the most money for any potential candidate spent for Olympic bidding in the history of the games. They want them and they get the impact from them.

NGUYEN: You mentioned NBC.

How are these corporate sponsors faring in these games? Are they making a pretty penny? HORROW: Yes, they're doing all right. But they spent a billion dollars to get to that point. You know, 71 percent of people surveyed say when they see these athletes play in the games and see commercials, they think patriotism and perseverance, not greed. And, of course, that translates into buying power.

Corporations are even trying to ambush each other. Miller Brewing, Miller beer, who is not an official Olympic sponsor, had a print ad with a taste test from Athens -- Georgia, not Greece.

NGUYEN: We're running out of time.

We can't talk too much about the U.S. Open, but we do want to talk about college football, because it starts this weekend.

How big of a business is this?

HORROW: It's a huge business. We teased a $5 billion business. And the bottom line is TV, TV and more TV. You know, 40 percent of the programs have a profit largely because of television. And ABC just signed a major $300 million deal with the Rose Bowl, including two national championship games.

Now, hold onto your seats, because when it starts this weekend in a stretch, for example, from late October to mid-November, there are over 19 nights, 20 nights of straight football night after night. Is it over...

NGUYEN: Nineteen!

HORROW: Yes. Is it over saturation? Probably not. But it generates a lot of dollars for television. Everybody is excited about the way TV dollars fuel sponsorships and then put the money in the coffers for college football.

NGUYEN: And who doesn't like college football? Go Horns, by the way. I had to throw that in there.

All right, Rick Horrow, thank you so much this morning.

HORROW: You stuck that in there.

GRIFFIN: We'll talk to you next week.

NGUYEN: I had to sneak it in there. I'm a Longhorn.

All right, Rick, thank you.

And since my sports lingo is pretty lame, Drew, I'm just going to toss it back to you.

GRIFFIN: Betty, thanks for sharing your Texas roots with us.

We've been asking you this morning which Olympic sport, in your opinion, is the most difficult to score or judge? We're going to read some of those replies next on CNN SATURDAY MORNING. If you still want to get in on this, our address is wam@cnn.com. It's not W-A-M, it's WEEKEND A.M.

The 2004 Olympic Games draw to a close tomorrow, ending more than two weeks of often outstanding athletic performs. And from the blur of events emerged eternal moments of singular clarity.

(COMMERCIAL BREAK)

GRIFFIN: What a crazy! The 60th installment of the compilation CD. Now, that's what I call music. It's on top of the Billboard charts and that song, Outkast, "Hey 'Ya!," one of the hits on that album.

Also in the top five, Ashlee Simpson. She goes down to number five. She was at number one last week. "Musicology," the Prince album, is up there, too. He gives out a copy of the CD with each concert ticket. Did you know that?

NGUYEN: Hey.

GRIFFIN: So I think that might be skewed.

The new super group of rap icon's 213, area code "The Hard Way" makes a debut. And Usher from Atlantic climbs back into the top five with "Confessions."

NGUYEN: I want to have a confession. You should have seen Drew dancing just a while ago. Whoo, it was a frightening sight. And, you know, speaking of "Wows of the Week," we're going to go to our "Wows of the Week."

A recent video worth a second look. First up is way up. Tourists in Britain's Buckingham Palace may be startled by the sight of this guardsman towering over his peers. Twenty-one-year-old Martin Walters is 7'3." That's 9' tall when he puts on the bearskin hat.

In Valencia, Spain, fruit and nuts -- folks going nuts every year, pasting each other with tomatoes. It's a tradition that dates back to 1945. The annual bash lasts for two hours, then the ankle deep mess, well, it's all hosed off.

And in Columbia, South Carolina, a very close call for the driver of a cement mixer. The vehicle smashed through a bridge barrier and sank in the river like, well, concrete, of course. The driver was banged up, but not seriously hurt. The mixer was battered beyond recognition.

GRIFFIN: All right, our e-mail question, which is the most difficult to score in the Olympics? John says synchronized swimming. "It's got be the most difficult," he says. "How do judges see underwater to grade what they are doing when they are upside down?" I'm not sure I would want that job.

NGUYEN: That was an interesting point.

GRIFFIN: You can continue writing which Olympic sport is the most difficult to score. Maybe they have one of those shamu tanks, you know?

NGUYEN: I wasn't expecting that one. Yes, right. There's always a camera.

Well, the next hour of CNN SATURDAY MORNING begins right now.

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