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American Morning

Republicans Turn To Arnold Schwarzenegger to Pump Up the President

Aired September 01, 2004 - 07:00   ET

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


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


BILL HEMMER, CNN ANCHOR: Good morning.
Second night of the Republican convention, Republicans turning to Arnold Schwarzenegger, here to pump up the president as only he can.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: To those critics who are so pessimistic about our economy, I say, don't be economic girlie men.

(END VIDEO CLIP)

HEMMER: Now the convention at the halfway point. Next come the candidates.

And breaking news in Russia, heavily armed terrorists have seized an elementary school: 400 held hostage; 200 may be children.

Those stories ahead, here on AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING. From the Republican National Convention in New York, here's Bill Hemmer.

HEMMER: And good morning on day three, a beautiful day outside. We're back inside yet again today, Madison Square Garden, just above the floor here. And good morning, and thanks for starting your day with us today.

Before we get to our convention coverage here, breaking news from Southern Russia. Bringing you up-to-date on what we know at this point.

According to Russian security officials more than a dozen armed men and women, some of them possibly wearing suicide bomb belts took over a school on the first day of class today.

Right now, according to Russian media, as many as 400 are held hostage, half of them could be children. It happened in the town of Beslan. That's a border region with Chechnya. Much more on what's happening over there. We'll get you live to Moscow in a moment.

Also, there's a lot to talk about here at the Republican convention, too. Last night's theme was compassion. It was presented in very different packages, too. The first lady, Laura Bush, was here; the Californian governor, Arnold Schwarzenegger, the featured speakers, along with the Bush twins, Barbara and Jenna.

We also heard from those daughters introducing their parents last night, reaction on their appearance here in a moment. And we're looking ahead later tonight.

The featured speakers on the stage: the vice president, Dick Cheney, will be here; his wife, Lynne, will introduce him. And she is our guest a bit later this half hour here along with their daughter Liz.

Also, we'll hear today from Dan Senor, the former coalition spokesperson in Iraq, what's happening there today.

John Kerry with a slated speech today, of significance, in Nashville. We'll get reaction on what's happening there as well.

And the Democratic committee chairman, Terry McAuliffe stops by to talk about what's happening at this point with Republicans now halfway point past here at their convention in New York City.

A packed show for you and also Heidi Collins.

With us today, my colleague across town -- good morning, Heidi, a lot to talk about today. Good morning, there.

HEIDI COLLINS, CNN ANCHOR: Certainly a lot to talk about. We are enjoying a beautiful day out here in front of the Time Life studios, and we are going to get the very latest, of course, on that situation in Russia in just a moment.

Also going to get the latest on the situation with this, Hurricane Frances, now a dangerous category four hurricane and could be headed to Florida. Chad Myers will have this.

Also this morning, "90-Second Pop." You know the delegates love to dance at the convention, but where do the Republicans go after they leave Madison Square Garden? We'll tell you all about the high-power parties going on around town.

Right now we want to toss it over to Jack Cafferty, enjoying himself across the street from Madison Square Garden. He's here at the CNN diner.

Hey, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning, Heidi. Later today, President Bush comes to town. He will be closeted with a group of New York City firefighters in Queens tonight where they are going to watch Vice President Dick Cheney's speech to the Republican convention.

What are the implications of that? Does it step on any 9/11 sensitivities? We'll take a look in a few minutes.

COLLINS: All right, Jack, look forward to that. Thanks so much. We do want to get you straight to Russia this morning now, a tense standoff there, Southern Russia. Armed attackers are holding hundreds of people hostage, including school children. The attackers just hours ago seized a school on the first day of school in the town of Beslan near the Chechen border.

Ryan Chilcote is there. He has the very latest now, live.

Hi, Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Heidi. Well, those hostage-takers are threatening to blow that school up with all of the hostages inside of it if Russian forces, who have gathered on the outside of it, make any attempt to try and storm it.

They are demanding, we understand, the release of several dozen prisoners from Russian jails that were picked up after a Chechen rebel raided - raid, in Southern Russia back in June.

They also, we understand, have passed on their mobile phone numbers to the Russian authorities on the outside. We also understand they may have passed on a tape.

Now there are a lot -- there is a lot of confusion about the exact number of people inside this school. Russian authorities say they just simply don't know; but they do believe there are at least 100 students, parents and teachers inside that school that are currently hostages.

They had just gathered at a ceremony to kick off the school year when these group of more than 15 armed gunmen opened fire and seized the school -- Heidi?

COLLINS: Ryan, unbelievable video coming out of there. Thanks so much. Ryan Chilcote in Moscow this morning.

Other stories in the news now. New terror suspects have reportedly been arrested in Pakistan. According to wire reports, two men were detained during recent raids in Southwestern Pakistan. Officials claim one of the men is a senior al Qaeda operative. That report has not yet been confirmed.

U.S. military sources in Iraq say mortars were fired near the Baghdad convention center this morning. That's where the Iraqi national council was holding its first meeting today. No casualties were reported.

And interim Prime Minister Iyad Allawi is condemning, this morning's attack by gunmen on Ahmed Chalabi. The politician is OK. But a spokesman says two of his bodyguards were injured.

Israel now considering renewing its efforts to kill Hamas leaders in response to two deadly suicide bombings. The Palestinian militant group claimed responsibility for the joint bus attacks yesterday that killed 16 people in Beer Sheva.

Overnight, Israeli forces blew up the home of one of the bombers. The suicide attacks are the first in Israel in almost six months.

The latest happening in the news now. Back over to Bill at Madison Square Garden.

HEMMER: All right, Heidi, thanks for that.

The vice president, Dick Cheney, takes the stage later tonight here at the Republican convention -- this after a night, last night, that featured the first lady, the first daughters and a rising Republican political star.

Here's Bob Franken on the floor, this morning. Bob, good morning there.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: And it was, as you pointed out earlier, a night of compassion, according to the Republicans. That's inside, not outside.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): While more than 900 protesters were arrested on the streets outside the Republicans were keeping the volume up inside.

Arnold Schwarzenegger left little doubt that he had gone from movie star to GOP political star.

SCHWARZENEGGER: And to those critics who are so pessimistic about our economy, I say, don't be economic girlie men.

FRANKEN: Then it was time for the women of the president's family. First, his daughters.

JENNA BUSH, DAUGHTER OF GEORGE BUSH: Our parents are actually pretty cool.

FRANKEN: The pretty cool mother, of course, had warm words about her husband.

LAURA BUSH, FIRST LADY: He's a loving man with a big heart.

FRANKEN: He arrives later today. First, the president visits some firemen in Elmhurst, the not so subtle reminder of the September 11th attacks just a few miles away.

Then he settles in to watch first the keynote speaker, Georgia senator, Zell Miller, a Democrat who will not be making his party very happy.

And then the acceptance speech by the very Republican vice president, Dick Cheney. He's accepting, by the way, his renomination, which is what President Bush does tomorrow.

(END VIDEOTAPE)

FRANKEN: And, as a matter of fact, overnight they're going to take that section of this hall and remove the chairs and put in a special stage for the president to make his speech.

After that, they strike the set and go on to the bigger stage, Bill, of the fall campaign.

HEMMER: All right, Bob, thanks for that. Bob Franken here on the floor.

Also with us today about what we heard last night and did not hear from the speakers, Bill Schneider, our senior political analyst with us, up early yet again today.

Good morning, Bill. How are you today?

BILL SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning.

HEMMER: First on the list today, Arnold Schwarzenegger. He came out last night and this place went nuts, in primetime, too. And the broadcast networks also carried it, as well.

Arnold Schwarzenegger from last night now. Listen here.

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: Ladies and gentlemen, America is back, back from the attack on our homeland, back from the attack on our economy and back from the attack on our way of life.

We are back because of the perseverance, character and leadership of the 43rd president of the United States, George W. Bush.

(END VIDEO CLIP)

HEMMER: So, Bill, then he came here last night pushing George Bush. How much did he push himself, too? Did he help himself last night?

SCHNEIDER: Oh, I am certain he did. The only problem is he can't run for president or vice president. He's not eligible. But he was out there trying to reach an audience that's non-political.

He's beyond politics. He has -- he reaches young people. He reaches people who pay no attention to the campaign. They tuned in to watch Arnold, and he told them you should vote for George Bush. He reaches a whole new audience.

HEMMER: So then Schwarzenegger was the first act. The first lady was the second act. Laura Bush last night talking about education in America, now.

(BEGIN VIDEO CLIP)

L. BUSH: The No Child Left Behind Act provides historic levels of funding with an unprecedented commitment to higher standards, strong accountability and proven methods of instruction.

We are determined to provide a quality education for every child in America. (END VIDEO CLIP)

HEMMER: So then, a lot of analysts, perhaps yourself as well, would agree with this, or not. Has she become more political this time around than four years ago and perhaps more partisan as well?

SCHNEIDER: Yes and yes. And that's not a bad thing because she -- that's her intention. She's out there campaigning for her husband, and she has really become -- she's become a more political figure, but I would also add a third "p", not just political and partisan but poised.

She gave a very poised speech in which she made a good case for her husband, particularly in the war on terror. It was an accomplished political speech from a woman who says she doesn't like to give political speeches.

HEMMER: So then later tonight, "a land of opportunity." That's the theme.

SCHNEIDER: Yes.

HEMMER: Dick Cheney is on the stage tonight. And outside of this there are rumors about the Kerry campaign and a possible shakeup.

SCHNEIDER: Yes.

HEMMER: What's happening there that we can talk about at this point?

SCHNEIDER: Well, at this point, it looks like they're thinking about bringing some new people in. They are not necessarily talking about getting rid of anyone; although everything, I imagine, is up in the air.

This is a sign of some trouble. Whenever a campaign is in trouble, you hear rumors of a shakeup. No one knows how much of this is going to happen.

But we do know that there are lots of activists, contributors, strategists getting through to the Kerry campaign and saying, do something, quickly, before Labor Day. You have lost the momentum.

I don't think he's sunk. I don't think he's in serious trouble. But clearly, things have not been going his way, for the last month, nothing but the Swift Boat campaign. He has been kept off message. And you have a lot of Democrats very worried.

HEMMER: We will hear from him around noon today. He's at a speech in Nashville, Tennessee.

Thank you, Bill.

SCHNEIDER: Sure.

HEMMER: We'll talk to later, as well. Bill Schneider here in New York.

Also a reminder to our viewers, a bit later this half hour we'll talk with Lynne Cheney, her daughter Liz as well, 7:20 a.m. Eastern time, about nine or 10 minutes from now.

Back to Heidi, now, across town -- Heidi?

COLLINS: Bill, thanks.

Five people are dead after tropical storm Gaston hit Richmond, Virginia. The 20-block area of downtown declared uninhabitable yesterday from floodwaters. In fact, look at this. Incredible video captured by an amateur photographer.

Streets were turned into raging rivers, cars swept away. Virginia's governor, Mark Warner, has declared a state of emergency. He says that it is a miracle more people weren't killed.

In the next hour of AMERICAN MORNING, we're going to talk with the photographer who shot this video.

And in Florida, people are preparing for hurricane Frances. Stocking up on wood and other supplies. Long lines awaited them at stores like Home Depot yesterday. This morning Frances is taking a run at the Turks and Caicos islands in the Bahamas.

Chad Myers is at the CNN Center with the very latest on all of this. We keep talking about all these floodwaters, unbelievable stuff there in Richmond.

CHAD MYERS, CNN METEOROLOGIST: Yes, certainly. They had 16 inches of rain this month, in August. And that was just incredible. Then they had six and a half inches in one day, and it all couldn't go anywhere. It couldn't soak in. It ran off, obviously. And that's what we call Shockoe Bottom, or the bottoms, there, of Richmond. And all that water just really came up all the way near the farmer's market and all that.

I used to live in Richmond, and boy, that's just a shame because that area was finally coming back from some years of decay.

(WEATHER BREAK)

MYERS: Back to you.

HEMMER: And the gusts are up 20 miles an hour between now and yesterday.

MYERS: Yes.

HEMMER: So strengthening at times, anyway.

MYERS: Absolutely.

HEMMER: Chad, thanks for that. We'll keep a very close eye on Frances. In a moment, could the November election be a referendum on the war in Iraq? We'll talk to one man who says, if it is, the choice for president is clear -- Dan Senor, former coalition spokesperson, our guest today.

Also, the Cheneys among the featured speakers later tonight, what about the vice president's apparent break from the White House on the issue of gay marriage? We'll talk to his wife Lynne Cheney about that topic.

And the next cut to be the deepest at one major airline. Andy has details still coming this hour here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: A beautiful shot of "Lady Liberty" this morning, this Wednesday morning. We're going to head over to another rockin' place. That's the CNN diner.

Jack Cafferty is standing by. Good morning, Jack.

CAFFERTY: Ground zero here for the Republican festivities. I understand though, Heidi, mostly it happens at night. They -- apparently some of the crew guys showed up around 4:00 this morning, and it took them a while to sweep the place out.

There were, you know, how shall we say? Bottles with tax stamps on the top in various locations around the place.

COLLINS: It was a mess?

CAFFERTY: So apparently they get this thing jumping at night, long past my bed time.

COLLINS: Yes, it is.

CAFFERTY: A major move by United Airlines employees, as workers anticipate layoffs, there. And we could be headed into a rough bit of sliding for the stock market. Andy Serwer is here "Minding Your Business."

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Jack. Before we get into that, I like your tie.

CAFFERTY: Good.

SERWER: I don't know if the viewers at home can see that. Are those elephants on the tie?

CAFFERTY: They are on the tie. The tie came from South Africa.

SERWER: Oh, it did?

CAFFERTY: Yes, it did. SERWER: Thos are South African elephants?

CAFFERTY: Those are South African elephants. And that's where the tie came from, and the rest of my wardrobe came from Bob's Discount up the street on 34th street.

SERWER: All right, well these are donkeys from New Zealand, here.

The "Financial Times" is reporting this morning that United Airlines may be laying off 6,000 workers. That's 10 percent of its work force. This airline had 100,000 employees before 9/11. It's been in bankruptcy since November of 2002. It may look to cut $655 million more dollars out of its budget. You may remember in June, Jack, the air stabilization transportation board rejected its bid for $1.6 billion in aid.

Let's talk about the market -- yesterday up a little bit, just some bargain-hunting going on. As for August, the market was up less than a month.

September, as we head into it, a very cruel month for the stock market. On average, stocks down 0.7, seven tenths of 1 percent in this month, as opposed to other months where it's up seven tenths of 1 percent. So, watch out for this one, all right.

CAFFERTY: Be careful. All right, thanks, Andy.

SERWER: You're welcome.

CAFFERTY: Back to you a little bit later.

The president's first stop in New York City for the convention will be in Queens tonight where he'll sit down with some New York City firefighters. He's going to watch Vice President Dick Cheney's speech. The event's designed to emphasize the war on terror and perhaps evoke memories of that day when the president visited ground zero after the September 11th attacks.

Some have said the Republicans are politicizing the event by having the convention in New York City. Others say the president has every right to recall the day America was attacked while he was commander in chief.

The question this morning is this, do you think the president's exploiting September 11th by meeting with firefighters in New York City later tonight?

The e-mail address is am@cnn.com. We'll read some of the responses later -- Heidi?

COLLINS: Jack, thanks so very much.

Still to come this morning, the vice president appears to have the role of attack dog in his campaign. But what about his other half? Lynne Cheney takes to the stage tonight. What does she think about her husband's role, his image and an issue that hits close to home, gay marriage?

We'll talk to her, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANNOUNCER: In 1956, Republicans added something novel to their convention, entertainers. They hoped Irvin Berlin and Ethel Merman would help hold the interest of the new television audience.

Performers have been part of the conventions ever since, including Ray Charles' memorable performance at the 1984 convention.

(RAY CHARLES SINGING)

(END VIDEO CLIP)

HEMMER: Welcome back, everyone. Live in Madison Square Garden.

Later tonight the vice president, Dick Cheney, formally accepts the nomination for a second term. He will be introduced by America's second lady, Lynne Cheney. Lynne Cheney my guest now here in New York, along with her daughter, Liz.

And we welcome you both to AMERICAN MORNING, nice to have you here.

LYNNE CHENEY, WIFE OF DICK CHENEY: Good to be here.

HEMMER: You've been here since Sunday.

CHENEY: That's right.

HEMMER: Out on the stage getting a sound check late on Sunday afternoon. Since that time, there have been at least two incidents reported where protesters got within feet of your husband inside Madison Square Garden.

Were you concerned at either point when this happened?

CHENEY: Not really because by the time I saw the protesters, they were already well under control and being put in a pretty firm direction out of the hall.

HEMMER: Did you have any concern, to this point, at all about security in New York City?

CHENEY: Gosh, it feels really safe to me.

HEMMER: It has.

CHENEY: New York has been terrific in welcoming and, I think, making everybody feel really safe and really welcome and happy to be here.

HEMMER: Let's talk about the campaign, OK.

Poll numbers lately show us, who would you choose for vice president? John Edwards beats your husband by 10 points, 52 percent to 42 percent.

CHENEY: Well...

HEMMER: You smile a little bit.

CHENEY: ... the world will get to know him better.

HEMMER: And does that start tonight?

CHENEY: Oh, I think that the vice president's speech tonight is going to be about big issues, the big issues of this campaign: the war on global terror, the president's education policy, the fact that the economy is turning up again.

And I get to introduce the vice president and have the privilege of talking about what a strong and steadfast men these both are, our president and vice president.

HEMMER: Let me get back to these numbers. Let me try and get a read about how you interpret this.

Why do you believe your husband has been such a lightning rod for Democrats on the left?

CHENEY: Well, you know, we're having an election soon, and I think it's really just part and parcel of what happens every year that ends in some multiple of four. And I know that Dick certainly feels that way about it, too.

And looking at what he's been able to contribute during his years in public life, I feel very good about that. And I can tell you, when I travel around the country, what I hear from people is very positive.

Since 9/11 and even still today I have people come up to me, and one of the things they say most often is how glad they are that George Bush and Dick Cheney are in the White House; and I know exactly what they mean.

HEMMER: I want to talk to Liz a second here and talk about your family.

Almost every interview you've done lately, this issue comes up. You have an openly gay sister. Her name is Mary. The reason I'm bringing it up, today, is because there was news on this issue last night.

Alan Keyes, who is here in New York as well, running for the Senate in Illinois, referred to Mary based on his definition, about how he sees gays in America as a selfish hedonist.

When you hear those words, how do you react?

LIZ CHENEY, DAUGHTER OF DICK CHENEY: I guess I'm surprised, frankly, that you would even repeat the quote, and I'm not going to dignify it with a comment?

HEMMER: Not even want to touch it, today?

L. CHENEY: It doesn't deserve a comment.

HEMMER: I know as a family you have always said, and you've said publicly, that you're OK with it, and you talk about it freely and openly. But this is something you don't want to address? Is that what you're...

L. CHENEY: No, I think that, you know, my father addressed the issue very plainly and very clearly. And, you know, what I like, though, my dad said frankly was how proud he is of both Mary and me, how much my parents, you know, take pride in both of our accomplishments.

HEMMER: Has it been difficult in a broader sense, then, to have an openly gay member of your family in the Republican Party?

CHENEY: You know I think that what we saw last night from Arnold was just perfectly in tune and on the right note, that there are things that we all differ about.

Here, I think people in Boston differed about things. But we sure, here in New York and Madison Square Garden, are perfectly united behind the idea that our president for the next four years should be George Bush and the vice president, of course, Dick Cheney.

HEMMER: I'm going to give you a chance to give yourself a plug. Your message tonight will be what?

CHENEY: Well, you know, I've known Dick for a long time, since he was 14.

HEMMER: I see.

CHENEY: And what I like to do is I introduce him across the country, is tell little anecdotes that people haven't heard before, that they don't know and I know because I've known him so long. I like to surprise him with them, and I think I'll surprise you.

HEMMER: We'll be watching and waiting.

Thank you.

CHENEY: All right.

HEMMER: Mrs. Cheney.

Thank you, Liz.

CHENEY: Thank you. HEMMER: Nice to see both of you here.

CHENEY: You too.

HEMMER: All right -- Heidi?

COLLINS: Thanks, Bill.

Still to come this morning, we're halfway through the workweek, so time for some "90-Second Pop."

It's party time at "the Garden" for Republicans, but we've got the inside scoop on where the real GOP hot spots are.

And what does a celeb supporter tell you about a candidate's politics?

Stay with us.

(COMMERCIAL BREAK)

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Aired September 1, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
Second night of the Republican convention, Republicans turning to Arnold Schwarzenegger, here to pump up the president as only he can.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: To those critics who are so pessimistic about our economy, I say, don't be economic girlie men.

(END VIDEO CLIP)

HEMMER: Now the convention at the halfway point. Next come the candidates.

And breaking news in Russia, heavily armed terrorists have seized an elementary school: 400 held hostage; 200 may be children.

Those stories ahead, here on AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING. From the Republican National Convention in New York, here's Bill Hemmer.

HEMMER: And good morning on day three, a beautiful day outside. We're back inside yet again today, Madison Square Garden, just above the floor here. And good morning, and thanks for starting your day with us today.

Before we get to our convention coverage here, breaking news from Southern Russia. Bringing you up-to-date on what we know at this point.

According to Russian security officials more than a dozen armed men and women, some of them possibly wearing suicide bomb belts took over a school on the first day of class today.

Right now, according to Russian media, as many as 400 are held hostage, half of them could be children. It happened in the town of Beslan. That's a border region with Chechnya. Much more on what's happening over there. We'll get you live to Moscow in a moment.

Also, there's a lot to talk about here at the Republican convention, too. Last night's theme was compassion. It was presented in very different packages, too. The first lady, Laura Bush, was here; the Californian governor, Arnold Schwarzenegger, the featured speakers, along with the Bush twins, Barbara and Jenna.

We also heard from those daughters introducing their parents last night, reaction on their appearance here in a moment. And we're looking ahead later tonight.

The featured speakers on the stage: the vice president, Dick Cheney, will be here; his wife, Lynne, will introduce him. And she is our guest a bit later this half hour here along with their daughter Liz.

Also, we'll hear today from Dan Senor, the former coalition spokesperson in Iraq, what's happening there today.

John Kerry with a slated speech today, of significance, in Nashville. We'll get reaction on what's happening there as well.

And the Democratic committee chairman, Terry McAuliffe stops by to talk about what's happening at this point with Republicans now halfway point past here at their convention in New York City.

A packed show for you and also Heidi Collins.

With us today, my colleague across town -- good morning, Heidi, a lot to talk about today. Good morning, there.

HEIDI COLLINS, CNN ANCHOR: Certainly a lot to talk about. We are enjoying a beautiful day out here in front of the Time Life studios, and we are going to get the very latest, of course, on that situation in Russia in just a moment.

Also going to get the latest on the situation with this, Hurricane Frances, now a dangerous category four hurricane and could be headed to Florida. Chad Myers will have this.

Also this morning, "90-Second Pop." You know the delegates love to dance at the convention, but where do the Republicans go after they leave Madison Square Garden? We'll tell you all about the high-power parties going on around town.

Right now we want to toss it over to Jack Cafferty, enjoying himself across the street from Madison Square Garden. He's here at the CNN diner.

Hey, Jack.

JACK CAFFERTY, CNN ANCHOR: Good morning, Heidi. Later today, President Bush comes to town. He will be closeted with a group of New York City firefighters in Queens tonight where they are going to watch Vice President Dick Cheney's speech to the Republican convention.

What are the implications of that? Does it step on any 9/11 sensitivities? We'll take a look in a few minutes.

COLLINS: All right, Jack, look forward to that. Thanks so much. We do want to get you straight to Russia this morning now, a tense standoff there, Southern Russia. Armed attackers are holding hundreds of people hostage, including school children. The attackers just hours ago seized a school on the first day of school in the town of Beslan near the Chechen border.

Ryan Chilcote is there. He has the very latest now, live.

Hi, Ryan.

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Heidi. Well, those hostage-takers are threatening to blow that school up with all of the hostages inside of it if Russian forces, who have gathered on the outside of it, make any attempt to try and storm it.

They are demanding, we understand, the release of several dozen prisoners from Russian jails that were picked up after a Chechen rebel raided - raid, in Southern Russia back in June.

They also, we understand, have passed on their mobile phone numbers to the Russian authorities on the outside. We also understand they may have passed on a tape.

Now there are a lot -- there is a lot of confusion about the exact number of people inside this school. Russian authorities say they just simply don't know; but they do believe there are at least 100 students, parents and teachers inside that school that are currently hostages.

They had just gathered at a ceremony to kick off the school year when these group of more than 15 armed gunmen opened fire and seized the school -- Heidi?

COLLINS: Ryan, unbelievable video coming out of there. Thanks so much. Ryan Chilcote in Moscow this morning.

Other stories in the news now. New terror suspects have reportedly been arrested in Pakistan. According to wire reports, two men were detained during recent raids in Southwestern Pakistan. Officials claim one of the men is a senior al Qaeda operative. That report has not yet been confirmed.

U.S. military sources in Iraq say mortars were fired near the Baghdad convention center this morning. That's where the Iraqi national council was holding its first meeting today. No casualties were reported.

And interim Prime Minister Iyad Allawi is condemning, this morning's attack by gunmen on Ahmed Chalabi. The politician is OK. But a spokesman says two of his bodyguards were injured.

Israel now considering renewing its efforts to kill Hamas leaders in response to two deadly suicide bombings. The Palestinian militant group claimed responsibility for the joint bus attacks yesterday that killed 16 people in Beer Sheva.

Overnight, Israeli forces blew up the home of one of the bombers. The suicide attacks are the first in Israel in almost six months.

The latest happening in the news now. Back over to Bill at Madison Square Garden.

HEMMER: All right, Heidi, thanks for that.

The vice president, Dick Cheney, takes the stage later tonight here at the Republican convention -- this after a night, last night, that featured the first lady, the first daughters and a rising Republican political star.

Here's Bob Franken on the floor, this morning. Bob, good morning there.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: And it was, as you pointed out earlier, a night of compassion, according to the Republicans. That's inside, not outside.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): While more than 900 protesters were arrested on the streets outside the Republicans were keeping the volume up inside.

Arnold Schwarzenegger left little doubt that he had gone from movie star to GOP political star.

SCHWARZENEGGER: And to those critics who are so pessimistic about our economy, I say, don't be economic girlie men.

FRANKEN: Then it was time for the women of the president's family. First, his daughters.

JENNA BUSH, DAUGHTER OF GEORGE BUSH: Our parents are actually pretty cool.

FRANKEN: The pretty cool mother, of course, had warm words about her husband.

LAURA BUSH, FIRST LADY: He's a loving man with a big heart.

FRANKEN: He arrives later today. First, the president visits some firemen in Elmhurst, the not so subtle reminder of the September 11th attacks just a few miles away.

Then he settles in to watch first the keynote speaker, Georgia senator, Zell Miller, a Democrat who will not be making his party very happy.

And then the acceptance speech by the very Republican vice president, Dick Cheney. He's accepting, by the way, his renomination, which is what President Bush does tomorrow.

(END VIDEOTAPE)

FRANKEN: And, as a matter of fact, overnight they're going to take that section of this hall and remove the chairs and put in a special stage for the president to make his speech.

After that, they strike the set and go on to the bigger stage, Bill, of the fall campaign.

HEMMER: All right, Bob, thanks for that. Bob Franken here on the floor.

Also with us today about what we heard last night and did not hear from the speakers, Bill Schneider, our senior political analyst with us, up early yet again today.

Good morning, Bill. How are you today?

BILL SCHNEIDER, CNN SR. POLITICAL ANALYST: Good morning.

HEMMER: First on the list today, Arnold Schwarzenegger. He came out last night and this place went nuts, in primetime, too. And the broadcast networks also carried it, as well.

Arnold Schwarzenegger from last night now. Listen here.

(BEGIN VIDEO CLIP)

SCHWARZENEGGER: Ladies and gentlemen, America is back, back from the attack on our homeland, back from the attack on our economy and back from the attack on our way of life.

We are back because of the perseverance, character and leadership of the 43rd president of the United States, George W. Bush.

(END VIDEO CLIP)

HEMMER: So, Bill, then he came here last night pushing George Bush. How much did he push himself, too? Did he help himself last night?

SCHNEIDER: Oh, I am certain he did. The only problem is he can't run for president or vice president. He's not eligible. But he was out there trying to reach an audience that's non-political.

He's beyond politics. He has -- he reaches young people. He reaches people who pay no attention to the campaign. They tuned in to watch Arnold, and he told them you should vote for George Bush. He reaches a whole new audience.

HEMMER: So then Schwarzenegger was the first act. The first lady was the second act. Laura Bush last night talking about education in America, now.

(BEGIN VIDEO CLIP)

L. BUSH: The No Child Left Behind Act provides historic levels of funding with an unprecedented commitment to higher standards, strong accountability and proven methods of instruction.

We are determined to provide a quality education for every child in America. (END VIDEO CLIP)

HEMMER: So then, a lot of analysts, perhaps yourself as well, would agree with this, or not. Has she become more political this time around than four years ago and perhaps more partisan as well?

SCHNEIDER: Yes and yes. And that's not a bad thing because she -- that's her intention. She's out there campaigning for her husband, and she has really become -- she's become a more political figure, but I would also add a third "p", not just political and partisan but poised.

She gave a very poised speech in which she made a good case for her husband, particularly in the war on terror. It was an accomplished political speech from a woman who says she doesn't like to give political speeches.

HEMMER: So then later tonight, "a land of opportunity." That's the theme.

SCHNEIDER: Yes.

HEMMER: Dick Cheney is on the stage tonight. And outside of this there are rumors about the Kerry campaign and a possible shakeup.

SCHNEIDER: Yes.

HEMMER: What's happening there that we can talk about at this point?

SCHNEIDER: Well, at this point, it looks like they're thinking about bringing some new people in. They are not necessarily talking about getting rid of anyone; although everything, I imagine, is up in the air.

This is a sign of some trouble. Whenever a campaign is in trouble, you hear rumors of a shakeup. No one knows how much of this is going to happen.

But we do know that there are lots of activists, contributors, strategists getting through to the Kerry campaign and saying, do something, quickly, before Labor Day. You have lost the momentum.

I don't think he's sunk. I don't think he's in serious trouble. But clearly, things have not been going his way, for the last month, nothing but the Swift Boat campaign. He has been kept off message. And you have a lot of Democrats very worried.

HEMMER: We will hear from him around noon today. He's at a speech in Nashville, Tennessee.

Thank you, Bill.

SCHNEIDER: Sure.

HEMMER: We'll talk to later, as well. Bill Schneider here in New York.

Also a reminder to our viewers, a bit later this half hour we'll talk with Lynne Cheney, her daughter Liz as well, 7:20 a.m. Eastern time, about nine or 10 minutes from now.

Back to Heidi, now, across town -- Heidi?

COLLINS: Bill, thanks.

Five people are dead after tropical storm Gaston hit Richmond, Virginia. The 20-block area of downtown declared uninhabitable yesterday from floodwaters. In fact, look at this. Incredible video captured by an amateur photographer.

Streets were turned into raging rivers, cars swept away. Virginia's governor, Mark Warner, has declared a state of emergency. He says that it is a miracle more people weren't killed.

In the next hour of AMERICAN MORNING, we're going to talk with the photographer who shot this video.

And in Florida, people are preparing for hurricane Frances. Stocking up on wood and other supplies. Long lines awaited them at stores like Home Depot yesterday. This morning Frances is taking a run at the Turks and Caicos islands in the Bahamas.

Chad Myers is at the CNN Center with the very latest on all of this. We keep talking about all these floodwaters, unbelievable stuff there in Richmond.

CHAD MYERS, CNN METEOROLOGIST: Yes, certainly. They had 16 inches of rain this month, in August. And that was just incredible. Then they had six and a half inches in one day, and it all couldn't go anywhere. It couldn't soak in. It ran off, obviously. And that's what we call Shockoe Bottom, or the bottoms, there, of Richmond. And all that water just really came up all the way near the farmer's market and all that.

I used to live in Richmond, and boy, that's just a shame because that area was finally coming back from some years of decay.

(WEATHER BREAK)

MYERS: Back to you.

HEMMER: And the gusts are up 20 miles an hour between now and yesterday.

MYERS: Yes.

HEMMER: So strengthening at times, anyway.

MYERS: Absolutely.

HEMMER: Chad, thanks for that. We'll keep a very close eye on Frances. In a moment, could the November election be a referendum on the war in Iraq? We'll talk to one man who says, if it is, the choice for president is clear -- Dan Senor, former coalition spokesperson, our guest today.

Also, the Cheneys among the featured speakers later tonight, what about the vice president's apparent break from the White House on the issue of gay marriage? We'll talk to his wife Lynne Cheney about that topic.

And the next cut to be the deepest at one major airline. Andy has details still coming this hour here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: A beautiful shot of "Lady Liberty" this morning, this Wednesday morning. We're going to head over to another rockin' place. That's the CNN diner.

Jack Cafferty is standing by. Good morning, Jack.

CAFFERTY: Ground zero here for the Republican festivities. I understand though, Heidi, mostly it happens at night. They -- apparently some of the crew guys showed up around 4:00 this morning, and it took them a while to sweep the place out.

There were, you know, how shall we say? Bottles with tax stamps on the top in various locations around the place.

COLLINS: It was a mess?

CAFFERTY: So apparently they get this thing jumping at night, long past my bed time.

COLLINS: Yes, it is.

CAFFERTY: A major move by United Airlines employees, as workers anticipate layoffs, there. And we could be headed into a rough bit of sliding for the stock market. Andy Serwer is here "Minding Your Business."

Good morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Jack. Before we get into that, I like your tie.

CAFFERTY: Good.

SERWER: I don't know if the viewers at home can see that. Are those elephants on the tie?

CAFFERTY: They are on the tie. The tie came from South Africa.

SERWER: Oh, it did?

CAFFERTY: Yes, it did. SERWER: Thos are South African elephants?

CAFFERTY: Those are South African elephants. And that's where the tie came from, and the rest of my wardrobe came from Bob's Discount up the street on 34th street.

SERWER: All right, well these are donkeys from New Zealand, here.

The "Financial Times" is reporting this morning that United Airlines may be laying off 6,000 workers. That's 10 percent of its work force. This airline had 100,000 employees before 9/11. It's been in bankruptcy since November of 2002. It may look to cut $655 million more dollars out of its budget. You may remember in June, Jack, the air stabilization transportation board rejected its bid for $1.6 billion in aid.

Let's talk about the market -- yesterday up a little bit, just some bargain-hunting going on. As for August, the market was up less than a month.

September, as we head into it, a very cruel month for the stock market. On average, stocks down 0.7, seven tenths of 1 percent in this month, as opposed to other months where it's up seven tenths of 1 percent. So, watch out for this one, all right.

CAFFERTY: Be careful. All right, thanks, Andy.

SERWER: You're welcome.

CAFFERTY: Back to you a little bit later.

The president's first stop in New York City for the convention will be in Queens tonight where he'll sit down with some New York City firefighters. He's going to watch Vice President Dick Cheney's speech. The event's designed to emphasize the war on terror and perhaps evoke memories of that day when the president visited ground zero after the September 11th attacks.

Some have said the Republicans are politicizing the event by having the convention in New York City. Others say the president has every right to recall the day America was attacked while he was commander in chief.

The question this morning is this, do you think the president's exploiting September 11th by meeting with firefighters in New York City later tonight?

The e-mail address is am@cnn.com. We'll read some of the responses later -- Heidi?

COLLINS: Jack, thanks so very much.

Still to come this morning, the vice president appears to have the role of attack dog in his campaign. But what about his other half? Lynne Cheney takes to the stage tonight. What does she think about her husband's role, his image and an issue that hits close to home, gay marriage?

We'll talk to her, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANNOUNCER: In 1956, Republicans added something novel to their convention, entertainers. They hoped Irvin Berlin and Ethel Merman would help hold the interest of the new television audience.

Performers have been part of the conventions ever since, including Ray Charles' memorable performance at the 1984 convention.

(RAY CHARLES SINGING)

(END VIDEO CLIP)

HEMMER: Welcome back, everyone. Live in Madison Square Garden.

Later tonight the vice president, Dick Cheney, formally accepts the nomination for a second term. He will be introduced by America's second lady, Lynne Cheney. Lynne Cheney my guest now here in New York, along with her daughter, Liz.

And we welcome you both to AMERICAN MORNING, nice to have you here.

LYNNE CHENEY, WIFE OF DICK CHENEY: Good to be here.

HEMMER: You've been here since Sunday.

CHENEY: That's right.

HEMMER: Out on the stage getting a sound check late on Sunday afternoon. Since that time, there have been at least two incidents reported where protesters got within feet of your husband inside Madison Square Garden.

Were you concerned at either point when this happened?

CHENEY: Not really because by the time I saw the protesters, they were already well under control and being put in a pretty firm direction out of the hall.

HEMMER: Did you have any concern, to this point, at all about security in New York City?

CHENEY: Gosh, it feels really safe to me.

HEMMER: It has.

CHENEY: New York has been terrific in welcoming and, I think, making everybody feel really safe and really welcome and happy to be here.

HEMMER: Let's talk about the campaign, OK.

Poll numbers lately show us, who would you choose for vice president? John Edwards beats your husband by 10 points, 52 percent to 42 percent.

CHENEY: Well...

HEMMER: You smile a little bit.

CHENEY: ... the world will get to know him better.

HEMMER: And does that start tonight?

CHENEY: Oh, I think that the vice president's speech tonight is going to be about big issues, the big issues of this campaign: the war on global terror, the president's education policy, the fact that the economy is turning up again.

And I get to introduce the vice president and have the privilege of talking about what a strong and steadfast men these both are, our president and vice president.

HEMMER: Let me get back to these numbers. Let me try and get a read about how you interpret this.

Why do you believe your husband has been such a lightning rod for Democrats on the left?

CHENEY: Well, you know, we're having an election soon, and I think it's really just part and parcel of what happens every year that ends in some multiple of four. And I know that Dick certainly feels that way about it, too.

And looking at what he's been able to contribute during his years in public life, I feel very good about that. And I can tell you, when I travel around the country, what I hear from people is very positive.

Since 9/11 and even still today I have people come up to me, and one of the things they say most often is how glad they are that George Bush and Dick Cheney are in the White House; and I know exactly what they mean.

HEMMER: I want to talk to Liz a second here and talk about your family.

Almost every interview you've done lately, this issue comes up. You have an openly gay sister. Her name is Mary. The reason I'm bringing it up, today, is because there was news on this issue last night.

Alan Keyes, who is here in New York as well, running for the Senate in Illinois, referred to Mary based on his definition, about how he sees gays in America as a selfish hedonist.

When you hear those words, how do you react?

LIZ CHENEY, DAUGHTER OF DICK CHENEY: I guess I'm surprised, frankly, that you would even repeat the quote, and I'm not going to dignify it with a comment?

HEMMER: Not even want to touch it, today?

L. CHENEY: It doesn't deserve a comment.

HEMMER: I know as a family you have always said, and you've said publicly, that you're OK with it, and you talk about it freely and openly. But this is something you don't want to address? Is that what you're...

L. CHENEY: No, I think that, you know, my father addressed the issue very plainly and very clearly. And, you know, what I like, though, my dad said frankly was how proud he is of both Mary and me, how much my parents, you know, take pride in both of our accomplishments.

HEMMER: Has it been difficult in a broader sense, then, to have an openly gay member of your family in the Republican Party?

CHENEY: You know I think that what we saw last night from Arnold was just perfectly in tune and on the right note, that there are things that we all differ about.

Here, I think people in Boston differed about things. But we sure, here in New York and Madison Square Garden, are perfectly united behind the idea that our president for the next four years should be George Bush and the vice president, of course, Dick Cheney.

HEMMER: I'm going to give you a chance to give yourself a plug. Your message tonight will be what?

CHENEY: Well, you know, I've known Dick for a long time, since he was 14.

HEMMER: I see.

CHENEY: And what I like to do is I introduce him across the country, is tell little anecdotes that people haven't heard before, that they don't know and I know because I've known him so long. I like to surprise him with them, and I think I'll surprise you.

HEMMER: We'll be watching and waiting.

Thank you.

CHENEY: All right.

HEMMER: Mrs. Cheney.

Thank you, Liz.

CHENEY: Thank you. HEMMER: Nice to see both of you here.

CHENEY: You too.

HEMMER: All right -- Heidi?

COLLINS: Thanks, Bill.

Still to come this morning, we're halfway through the workweek, so time for some "90-Second Pop."

It's party time at "the Garden" for Republicans, but we've got the inside scoop on where the real GOP hot spots are.

And what does a celeb supporter tell you about a candidate's politics?

Stay with us.

(COMMERCIAL BREAK)

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