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U.S. Marines Launch Assault on Falluja; Ivorian Army Pound Rebel Stronghold; Arafat's Wife Controls Hospital Visits

Aired November 08, 2004 - 10:00   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.


RICK SANCHEZ, CNN ANCHOR: Whatever happens in the next couple of hours, we're going to have it covered for you here. We have people in places. And we're trying to also hook up with some military analysts to try and break some of what's going on down for you.
DARYN KAGAN, CNN ANCHOR: And that we have. We have a lot of news as well. Let's start with some headlines.

SANCHEZ: Well, it may not be yet the expected main event, but U.S. and Iraqi forces, as you've just heard, have clashed in heavy fighting near Falluja. They have reportedly secured two bridges and they've also seized a hospital.

Heavy fighting is also reported on the outskirts of the city. More than 10,000 U.S. Marines and Iraqi troops await their order in the desert near Falluja. Iraq's interim Prime Minister Ayad Allawi ordered a curfew, and said today, the insurgents do not want a peaceful settlement.

We've got details coming up from Baghdad that will be coming your way in just about a minute. Meanwhile, here's some of the other stories that we're following today, headlines.

French army forces locked in a bloody battle on the Ivory Coast. Tanks surround the home of he nation's President Laurent Gbagbo. Gbagbo is calling for calm, as thousands of angry demonstrators gather demanding the French withdraw. The African Union has called an emergency session there following a weekend of anti-French violence. The trouble began when the Ivory Coast planes killed peacekeepers in the Saturday air raid. France retaliated by blowing up nine Ivorian aircraft.

Now, to this story. Palestinian officials plan to visit ailing Palestinian leader Yasser Arafat in Paris, despite comments by Arafat's wife that a conspiracies against him exists. Palestinian legislator Hannan Ashrawi says it is important for officials to see Arafat and determine his condition. There have been conflicting reports about the state of Arafat's health. We have a live report, by the way, coming up from Paris. That should be coming your way also in about seven minutes or so.

And this, New Jersey Governor James McGreevey delivers his farewell speech this afternoon in Trenton. Scandals, both personal and professional, forced his resignation. McGreevey will formally step down next Monday. CNN will cover McGreevey address live beginning at 1:30 and that would be Eastern Time. As you can see everyone, we do have an awful lot of news that we're going to be following for you. I'm Rick Sanchez.

And good morning, I'm Daryn Kagan. Booby traps, snipers and suicide-bombers, these are the dangers looming in Falluja and it's urban battleground.

U.S. and Iraqi forces are massed on the outskirts of Falluja. And minutes ago, we learned that U.S. Marines have advanced into battle positions. That means we're waiting for orders to move into the insurgent stronghold. U.S. commanders warn the landscape of that major city may hold the most ferocious guerrilla fighting that Americans have faced in decades.

We begin our coverage with senior international correspondent Nic Robertson.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INT'L. CORRESPONDENT (on camera): In announcing that he was going to implement some of the actions under the state of emergency, Prime Minister Ayad Allawi said the government had done everything it could to deal peacefully with the insurgents, to give them opportunities to negotiate politically, to put down their weapons.

He said that they continued, in his words, "to carry on with their terrorist acts" and the government was given -- was left no other alternative. He said essentially given a green light to the multinational and Iraqi forces to begin their offensive on Falluja.

AYAD ALLAWI, PRIME MINISTER, IRAQ: I have given my authority to the multinational forces. I have given my authority to the Iraqi forces to spearhead the multinational forces withheld. We are determined to clean Falluja from terrorists.

ROBERTSON: Under the state of emergency, he said that the curfew in Falluja would begin at 6:00 p.m., just after dark. He said that the highway in and out of Falluja would be closed. The borders between Iraq and Jordan, and Iraq and Syria would be closed apart from a few shipments. And Baghdad International Airport would be closed for the next 48 hours. "To stop," he said, "any insurgents escaping from Iraq."

He also said that as the multinational forces and Iraqi forces captured a hospital on the western outskirt of Falluja. Earlier in the day that they captured four foreign fighters, he said two of them are Moroccans, two of unknown origin. He also said that they had killed 38 insurgents, barricaded -- who had barricaded themselves into the hospital.

Also, we've heard reports from our embedded reporters on the outskirts of Falluja that there's been continued artillery barrages, tank fire, aircraft flanks, soldiers dropping bombs on Falluja. And from the embedded reporter, who was at the hospital when the Iraqi forces took control, he said in the early hours of the morning a five- hour gun battle began with Iraqi insurgents.

The coalition using Cobra attack helicopters, firing Hellfire missiles, artillery fire, tank fire. And aircraft brought into insurgent positions that were firing mortars, rocket propelled grenades and small arms fires on the coalition forces.

He said that the buildings that the coalition believed the insurgents were using had received so much fire, and in some cases had collapsed. The pool reporter at the hospital also said from his position that he can see at least five columns of smoke rising up from the city of Falluja.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

SANCHEZ: Let's tell you how some of this began. Iraq's interim Prime Minister Ayad Allawi had ordered a curfew that goes into effect this hour in Falluja and in Ramadi. He says he personally gave coalition forces the green light to gain control of the city, as hopes for negotiations suddenly start to fade away.

(BEGIN VIDEO CLIP)

ALLAWI: There is a division between the Iraqi people and the terrorists. We are after terrorists. We are not after anybody else. And all of the Iraqi people, including people in Falluja, they want us to go ahead and freeze the terrorists and have the rule of law prevail in Falluja. And this is what we intend to do.

(END VIDEO CLIP)

SANCHEZ: By the way, Allawi has also declared a state of emergency over most of Iraq. Tried to close some of the orders with Syria and with Jordan.

Certainly a lot of meetings going on, a lot of discussion taking place right now in the Pentagon. So, what do you say we go there? Barbara Starr our Pentagon reporter is following some of the conversations. She's joining us now to bring us the latest.

Barbara, over to you.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Rick, good morning to you. We're just now being confirmed by the U.S. military that Marines, Army soldiers and Iraqi security forces are now in their final so-called "battle positions" around Falluja; the last indicator perhaps that the all-out assault into the city is imminent.

Look at this satellite photo. What they are facing is the east bank of the Euphrates River, where the population is very concentrated, where they believe the insurgents are well dug in and some hours of very serious potential fighting are ahead of them. What sources -- what military officials are saying is they now believe the insurgents have even gone to the point where they have dug tunnels between mosques and hospitals and schools. These tunnels, they believe, will be used for fighting positions, targets that the U.S. normally, of course, would not strike, to run ammunition and supplies back and forth. These initial skirmishes that have taken place in the last several hours, including helicopter gun ships launching Hellfire missiles, of course, are just the first sign of what is to come in the hours ahead.

Of course, it is dark in Falluja now. The curfew is in place now, as you say. The roads are closed. They have been trying to urge civilians to get out of the city, to get out of the way. But at this point, it appears by all indications following these initial skirmishes that the fighting certainly is expected to pick up in the hours ahead.

Rick, what officials here at the Pentagon are watching is not just Falluja but the big picture for Iraq, of course. Falluja is perhaps the most serious element of the insurgency right now, but not the only one. It is estimate there are between there and 5,000 insurgent fighters in Falluja, perhaps 12,000 insurgents across the country.

An insurgency that appears to still have plenty of firepower in its arsenal, and appears at this point not to believe that it is going to face defeat by the coalition forces.

So, at this point, what Pentagon officials are saying is they will do everything to take Falluja back, put it under local control. But no one is under the illusion here that it is going to end the violence across Iraq -- Rick.

SANCHEZ: Barbara, I think most of our viewers would understand why the United States would need to seize those two bridges that cross the Euphrates. But there may be some people who are perplexed about this assault on a hospital. What is the significance of that particular hospital to the insurgents?

STARR: Well, the coalition has long said that they believe the insurgents have been using hospitals as essentially a propaganda tool, if you will. That they are forcing doctors and medical personnel to say civilians have been injured in U.S. air attacks and that these hospitals have become areas of intimidation by the insurgents. That the U.S. and Iraqi security forces wanted to get a handle on, they wanted to take the hospital. They wanted to put it back under local control, if you will.

So, last night, that was one of the initial targets. Iraqi commandos went in there and took the hospital with virtually no resistance. They were, of course, accompanied by U.S. military forces. They then had brought in hospital supplies, because they want it to be available to residents of the city who may be injured in the fighting in the hours and days ahead.

There's a very strong feeling by the U.S. military that they want the Iraqis to understand that they are not being targeted, that the civilians are not being targeted. And that the U.S. is there with the Iraqi security forces to offer medical assistance to those who may be hurt -- Rick.

SANCHEZ: Barbara Starr is going to be following developments there with her sources at the Pentagon. We'll be checking with her from time to time.

Thank you so much, Barbara.

Daryn, over to you.

KAGAN: To Paris now, Yasser Arafat seems between life and death. And an outburst by his wife briefly drew -- threw into limbo a planned visit by Palestinian leaders. Remembers that delegations first canceled that trip to Paris, but they are now all en route after all.

Our Fionnuala Sweeney joins us with the latest developments from Paris Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Daryn, indeed, the atmosphere here in Paris beginning to take on the air of a soap opera; albeit a serious one with long-term implications.

News last night, an indication that the Palestinian Authority was trying to take some decisive action over the rumors that have been swirling around Yasser Arafat's health over the last number of days, in a decision to come here to Paris to see for themselves what is going on.

But overnight, Suha Arafat, extremely angry at this development, she gave a telephone interview to al Jazeera television, in which she roundly condemned to the trip; describing the delegations coming here as people who want to publicly bury him alive.

(BEGIN VIDEO CLIP)

SUHA ARAFAT, WIFE OF YASSER ARAFAT (through translator): This is an appeal to the Palestinian people from Yasser Arafat's bedside. Let it be known to the honest people of Palestine, a group of inheritor wannabes are coming to Paris trying to bury Abu Ammar alive.

I ask you to understand the scope of this conspiracy. I tell you they are trying to bury Abu Ammar alive. Abu Ammar is well and will return to his homeland. Let it be a revolution until victory. God is great. God is great.

(END VIDEO CLIP)

SWEENEY: And indeed, those inheritors and wannabes that Suha Arafat referred to in that sound bite, include the members of this delegations. They are: the current Prime Minister Qorei, the former Prime Minister Abu Mazen, and who is also the deputy chief of the PLO, also the Foreign Minister Nabil Shaath and the speaker of the legislative assembly. Now, that is person is a very important person, because he is the person in the event of the death Yasser Arafat who will assume power for 60 days until elections are held.

Suha Arafat clearly very worried that these men will come to Paris. She at the moment is still not agreeing to them visiting his bedside. But they are on route, as you say, expected here in about six hours time, a visit with the French foreign minister on the cards tomorrow. And after that we shall see whether or not they will be able to visit Yasser Arafat, who remains in a critical but stable position.

KAGAN: And Fionnuala, according to French law, it is Mrs. Arafat who does control access to her husband and any medical decisions, or in terms of information that's released. Is that correct?

SWEENEY: Well, that is exactly the nub of the problem. If you remember about a week ago, Leila Shahid who is the Palestinian envoy to Paris, really they made quite regular statements to the press about Yasser Arafat's health. It was on Wednesday when he suddenly took this sudden deterioration for the worse, that Suha Arafat stepped and began to severely limit and control the of amount of information that was coming from the hospital.

So, we have these very vague and short hospital statements about his condition, really not shedding any light on him whatsoever. That accompanied by what we, as journalists, were hearing from the Palestinian delegations here accompanying Arafat, which gave us very strong indications he was seriously ill.

So, the Palestinian Authority here really trying, I think, to dispel the rumors that have been surrounding the whole situation over the last number of days. But as you say, under French law she is the next of kin. And thus such, it is up to her who visits his bedside and what the hospital officials can say publicly -- Daryn.

KAGAN: Fionnuala Sweeney in Paris. Fionnuala, thank you.

SANCHEZ: And we're following the very latest developments coming out of Falluja, a place where U.S. Marines are indeed moving in now. We should let you know it's a delicate situation for Marines. This is a city that has some 200 mosques and possibly some 90,000 residents still living there. The rest of the three to 500,000 apparently have already evacuated.

KAGAN: And also, we have other news ahead. The man who shot Ronald Reagan is asking for more. Still to come on CNN LIVE TODAY, John Hinckley's attempt for some additional freedom.

SANCHEZ: Also, sequestered all weekend, the jurors in Scott Peterson's trial coming together again.

KAGAN: And later, escaping Bush country? We'll tell you why more and more people are talking about packing up and moving out.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back to CNN LIVE TODAY.

About an hour from now, jurors are going to begin a fourth day of deliberations in the Scott Peterson murder trial. And now after months of testimony and mounds of evidences, it is the jury that is under microscope.

CNN's David Mattingly explains.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): They are some of the last pictures taken of Scott and Laci Peterson together, less than two weeks before her disappearance. A time when their closest friends and family believed them to be the picture of a happy couple.

The photographs were among more 50 exhibits released Friday by the court that tried Scott Peterson for murder. They included the gun found in his truck and the date book where he made reference to an "Important date for Amber." Amber Frey, his former secret girlfriend.

They are just a fraction of the 300 plus pieces of evidence and nearly 200 witnesses presented for the jury to consider, as they try to determine whether or not Scott Peterson killed his wife.

ROBERT TALBOT, PROFESSOR, UNIV. OF SAN FRANCISCO LAW SCHOOL: One of the things I think that jurors are struggling about is that they've been hearing things for five months. And it's very difficult to retain things for five months.

MATTINGLY: It's a task made difficult by a case with no murder weapon or cause of death. After just two and a half days of deliberations, the jury of six men and six women called it a week. And residents of the burgeoning tent city of media outside the courthouse moved from stand by to stand down.

PAULA CANNY, LEGAL ANALYST: Where it's their spouse or mother- in-law or the media, every one of those people know that no matter what they decide, it's going to be second-guess.

MATTINGLY: As they deliberate, the jurors have also lost their freedom. They were sequestered for the weekend at a local hotel with limited TV viewing, no access to news and no incoming phone calls.

HOWARD VARINSKY, PROSECUTION JURY CONSULTANT: It's a prison in a way. I mean it's very isolating and it's very empty in a way. And I've never -- I've spoken to a number of jurors who have been sequestered in major cases, and I've not ever heard one that was happy about it.

MATTINGLY: Jurors are due to get back to business Monday morning, led by a foreman who is both a doctor and a lawyer.

(on camera): He is also one juror who appeared to take detailed notes. He left the courtroom with a stack of notebooks in hand. Clearly to be used as he guides the jury through these life and death deliberations.

David Mattingly, CNN, Redwood City, California.

(END VIDEOTAPE) KAGAN: And we've other "Legal Briefs" to talk about today in a look at our docket. A hearing is underway this hour for Ronald Reagan's would be assassin John Hinckley Jr.

SANCHEZ: Yes. A federal judge is considering more freedom for Hinckley, who's been hospitalized since the 1981 attempt. His attorneys are asking for five-day unsupervised visits to his parents home every two-week.

KAGAN: Former NHL player Mike Danton faces sentencing today in a murder for hire plot. Danton entered a guilty plea to the charges this past summer, and faces seven to 10 year in prison. Prosecutors say he wanted to kill his agent.

SANCHEZ: And now on the Kobe Bryant case. A friend of the accuser said that she revealed plans to sue the NBA star in civil court. It's about a month after the alleged rape. The friend said the money would be used to pay for breast implants, a koala bear, and recording studio. An attorney for the alleged victim denies the friend's claims.

KAGAN: Sounds like it's time to get some new friends.

(LAUGHTER)

KAGAN: Yes. Are brokerage firm getting you the best deals or are they pulling the wool over your eyes?

SANCHEZ: Yes. Still to come, why you may want to pay closer attention to your portfolio today. We'll explain.

But first, here's Gerri Willis.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, guys. We're talking about dream houses today. How to build your own. We'll tell you about the steps you'll need to take if you want to do it by yourself when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

SANCHEZ: Well, are you thinking about building your dream home but you don't know quite where to start? It's arduous process. CNN's personal finance editor Gerri Willis has today's "Top Five Tips" for making that dream come true.

Hey, Gerri. Where do we start?

WILLIS: Hey, there. Well, you know, you've got to start with settling on your dream house. I know you think you've got to the have the bells and whistles. But guess what? You're probably going to have to come up with a design that you work on with a partner, maybe a spouse.

So, you've got to decide how many bedrooms, how many baths, who wants contemporary, who wants traditional. Try to get these things in line decided before you hire the architect or even a contractor. SANCHEZ: And how do you find what you want to settle on? What do you use to achieve that -- Gerri?

WILLIS: Well, you know, DIY, can stand for design it yourself not just do it yourself. A lot people these days don't even use an architect. Very common now to buy pre-made plans and then alter them a little bit to your specifications. There are a ton of Web sites you can go to here: explans.com, dreamhomesore.com. You see here now, punchsoftware. Check those out.

You know, you're not going to pay a ton for the plans. Maybe $200 to get a good look at them and then choose between a variety. And then you have to go find a contractor.

SANCHEZ: All right. There you have the process. Now how do you actually make it happen?

WILLIS: You've got to find a good contractor. Interview them; see their work on-site, you definitely have to check out what they're doing. And not just the general contractor, the person who's going to run the whole project, but the people who work for them.

The people who are going to lay your floor, put in your kitchen cabinets, all of them. You need to understand what level of work they've done in the past by checking it out. One good place to check out builders in your area, nahb.org.

And quickly one other thing here, do not pay everything up front. You will have no control over the process.

SANCHEZ: Yes.

WILLIS: Dole your money out a little bit at a time.

SANCHEZ: What do you -- you know, you look at all of these new homes, or you walk into the lobby of a hotel and see beautiful marble and the hardwood floors. That stuff is really expensive though, Gerri.

WILLIS: Well, it can be. You can spend a ton of dough on stuff like that. Or you can buy some of the new materials designed to look just like the fabulous hardwood floor, but much cheaper and durable, very durable indeed. Hardwood floors, granite counter tops, even Italian tile, you can find lower cost alternatives that look just like it. Go to toolbase.org for some ideas here. It's really worth checking out.

SANCHEZ: You know, I find sometimes, some of those materials are more durable than the real ones.

WILLIS: That's right. Absolutely right.

SANCHEZ: How do you make sure in the end that it all comes through right? In other words, it's one thing to build it, it's another thing to have it right. WILLIS: Absolutely. Well, you've heard of the punch list. You want actually the contractor to make up that last punch list. Because they probably know more about what could go wrong than you do. Have them put together a punch list, work through those last items.

And don't forget, you really want to hire an inspector to look over the property before you sign on the dotted line. It's a great idea. It cost you a couple hundred bucks, but they can see things that you wouldn't. Try nahi.org to find an inspector who has a real track record.

SANCHEZ: Gerri Willis, thanks so much for that great information.

WILLIS: Thank you.

KAGAN: Still to come, Iraqi and U.S. forces facing a battle with a city of armed insurgents.

SANCHEZ: Now what's ahead, the showdown in Falluja. We're going to talk to CNN analyst Ken Pollack.

KAGAN: And later, a lesson learned after going for an accidental swim in a nearby pool.

(COMMERCIAL BREAK)

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Aired November 8, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: Whatever happens in the next couple of hours, we're going to have it covered for you here. We have people in places. And we're trying to also hook up with some military analysts to try and break some of what's going on down for you.
DARYN KAGAN, CNN ANCHOR: And that we have. We have a lot of news as well. Let's start with some headlines.

SANCHEZ: Well, it may not be yet the expected main event, but U.S. and Iraqi forces, as you've just heard, have clashed in heavy fighting near Falluja. They have reportedly secured two bridges and they've also seized a hospital.

Heavy fighting is also reported on the outskirts of the city. More than 10,000 U.S. Marines and Iraqi troops await their order in the desert near Falluja. Iraq's interim Prime Minister Ayad Allawi ordered a curfew, and said today, the insurgents do not want a peaceful settlement.

We've got details coming up from Baghdad that will be coming your way in just about a minute. Meanwhile, here's some of the other stories that we're following today, headlines.

French army forces locked in a bloody battle on the Ivory Coast. Tanks surround the home of he nation's President Laurent Gbagbo. Gbagbo is calling for calm, as thousands of angry demonstrators gather demanding the French withdraw. The African Union has called an emergency session there following a weekend of anti-French violence. The trouble began when the Ivory Coast planes killed peacekeepers in the Saturday air raid. France retaliated by blowing up nine Ivorian aircraft.

Now, to this story. Palestinian officials plan to visit ailing Palestinian leader Yasser Arafat in Paris, despite comments by Arafat's wife that a conspiracies against him exists. Palestinian legislator Hannan Ashrawi says it is important for officials to see Arafat and determine his condition. There have been conflicting reports about the state of Arafat's health. We have a live report, by the way, coming up from Paris. That should be coming your way also in about seven minutes or so.

And this, New Jersey Governor James McGreevey delivers his farewell speech this afternoon in Trenton. Scandals, both personal and professional, forced his resignation. McGreevey will formally step down next Monday. CNN will cover McGreevey address live beginning at 1:30 and that would be Eastern Time. As you can see everyone, we do have an awful lot of news that we're going to be following for you. I'm Rick Sanchez.

And good morning, I'm Daryn Kagan. Booby traps, snipers and suicide-bombers, these are the dangers looming in Falluja and it's urban battleground.

U.S. and Iraqi forces are massed on the outskirts of Falluja. And minutes ago, we learned that U.S. Marines have advanced into battle positions. That means we're waiting for orders to move into the insurgent stronghold. U.S. commanders warn the landscape of that major city may hold the most ferocious guerrilla fighting that Americans have faced in decades.

We begin our coverage with senior international correspondent Nic Robertson.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INT'L. CORRESPONDENT (on camera): In announcing that he was going to implement some of the actions under the state of emergency, Prime Minister Ayad Allawi said the government had done everything it could to deal peacefully with the insurgents, to give them opportunities to negotiate politically, to put down their weapons.

He said that they continued, in his words, "to carry on with their terrorist acts" and the government was given -- was left no other alternative. He said essentially given a green light to the multinational and Iraqi forces to begin their offensive on Falluja.

AYAD ALLAWI, PRIME MINISTER, IRAQ: I have given my authority to the multinational forces. I have given my authority to the Iraqi forces to spearhead the multinational forces withheld. We are determined to clean Falluja from terrorists.

ROBERTSON: Under the state of emergency, he said that the curfew in Falluja would begin at 6:00 p.m., just after dark. He said that the highway in and out of Falluja would be closed. The borders between Iraq and Jordan, and Iraq and Syria would be closed apart from a few shipments. And Baghdad International Airport would be closed for the next 48 hours. "To stop," he said, "any insurgents escaping from Iraq."

He also said that as the multinational forces and Iraqi forces captured a hospital on the western outskirt of Falluja. Earlier in the day that they captured four foreign fighters, he said two of them are Moroccans, two of unknown origin. He also said that they had killed 38 insurgents, barricaded -- who had barricaded themselves into the hospital.

Also, we've heard reports from our embedded reporters on the outskirts of Falluja that there's been continued artillery barrages, tank fire, aircraft flanks, soldiers dropping bombs on Falluja. And from the embedded reporter, who was at the hospital when the Iraqi forces took control, he said in the early hours of the morning a five- hour gun battle began with Iraqi insurgents.

The coalition using Cobra attack helicopters, firing Hellfire missiles, artillery fire, tank fire. And aircraft brought into insurgent positions that were firing mortars, rocket propelled grenades and small arms fires on the coalition forces.

He said that the buildings that the coalition believed the insurgents were using had received so much fire, and in some cases had collapsed. The pool reporter at the hospital also said from his position that he can see at least five columns of smoke rising up from the city of Falluja.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

SANCHEZ: Let's tell you how some of this began. Iraq's interim Prime Minister Ayad Allawi had ordered a curfew that goes into effect this hour in Falluja and in Ramadi. He says he personally gave coalition forces the green light to gain control of the city, as hopes for negotiations suddenly start to fade away.

(BEGIN VIDEO CLIP)

ALLAWI: There is a division between the Iraqi people and the terrorists. We are after terrorists. We are not after anybody else. And all of the Iraqi people, including people in Falluja, they want us to go ahead and freeze the terrorists and have the rule of law prevail in Falluja. And this is what we intend to do.

(END VIDEO CLIP)

SANCHEZ: By the way, Allawi has also declared a state of emergency over most of Iraq. Tried to close some of the orders with Syria and with Jordan.

Certainly a lot of meetings going on, a lot of discussion taking place right now in the Pentagon. So, what do you say we go there? Barbara Starr our Pentagon reporter is following some of the conversations. She's joining us now to bring us the latest.

Barbara, over to you.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Rick, good morning to you. We're just now being confirmed by the U.S. military that Marines, Army soldiers and Iraqi security forces are now in their final so-called "battle positions" around Falluja; the last indicator perhaps that the all-out assault into the city is imminent.

Look at this satellite photo. What they are facing is the east bank of the Euphrates River, where the population is very concentrated, where they believe the insurgents are well dug in and some hours of very serious potential fighting are ahead of them. What sources -- what military officials are saying is they now believe the insurgents have even gone to the point where they have dug tunnels between mosques and hospitals and schools. These tunnels, they believe, will be used for fighting positions, targets that the U.S. normally, of course, would not strike, to run ammunition and supplies back and forth. These initial skirmishes that have taken place in the last several hours, including helicopter gun ships launching Hellfire missiles, of course, are just the first sign of what is to come in the hours ahead.

Of course, it is dark in Falluja now. The curfew is in place now, as you say. The roads are closed. They have been trying to urge civilians to get out of the city, to get out of the way. But at this point, it appears by all indications following these initial skirmishes that the fighting certainly is expected to pick up in the hours ahead.

Rick, what officials here at the Pentagon are watching is not just Falluja but the big picture for Iraq, of course. Falluja is perhaps the most serious element of the insurgency right now, but not the only one. It is estimate there are between there and 5,000 insurgent fighters in Falluja, perhaps 12,000 insurgents across the country.

An insurgency that appears to still have plenty of firepower in its arsenal, and appears at this point not to believe that it is going to face defeat by the coalition forces.

So, at this point, what Pentagon officials are saying is they will do everything to take Falluja back, put it under local control. But no one is under the illusion here that it is going to end the violence across Iraq -- Rick.

SANCHEZ: Barbara, I think most of our viewers would understand why the United States would need to seize those two bridges that cross the Euphrates. But there may be some people who are perplexed about this assault on a hospital. What is the significance of that particular hospital to the insurgents?

STARR: Well, the coalition has long said that they believe the insurgents have been using hospitals as essentially a propaganda tool, if you will. That they are forcing doctors and medical personnel to say civilians have been injured in U.S. air attacks and that these hospitals have become areas of intimidation by the insurgents. That the U.S. and Iraqi security forces wanted to get a handle on, they wanted to take the hospital. They wanted to put it back under local control, if you will.

So, last night, that was one of the initial targets. Iraqi commandos went in there and took the hospital with virtually no resistance. They were, of course, accompanied by U.S. military forces. They then had brought in hospital supplies, because they want it to be available to residents of the city who may be injured in the fighting in the hours and days ahead.

There's a very strong feeling by the U.S. military that they want the Iraqis to understand that they are not being targeted, that the civilians are not being targeted. And that the U.S. is there with the Iraqi security forces to offer medical assistance to those who may be hurt -- Rick.

SANCHEZ: Barbara Starr is going to be following developments there with her sources at the Pentagon. We'll be checking with her from time to time.

Thank you so much, Barbara.

Daryn, over to you.

KAGAN: To Paris now, Yasser Arafat seems between life and death. And an outburst by his wife briefly drew -- threw into limbo a planned visit by Palestinian leaders. Remembers that delegations first canceled that trip to Paris, but they are now all en route after all.

Our Fionnuala Sweeney joins us with the latest developments from Paris Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Daryn, indeed, the atmosphere here in Paris beginning to take on the air of a soap opera; albeit a serious one with long-term implications.

News last night, an indication that the Palestinian Authority was trying to take some decisive action over the rumors that have been swirling around Yasser Arafat's health over the last number of days, in a decision to come here to Paris to see for themselves what is going on.

But overnight, Suha Arafat, extremely angry at this development, she gave a telephone interview to al Jazeera television, in which she roundly condemned to the trip; describing the delegations coming here as people who want to publicly bury him alive.

(BEGIN VIDEO CLIP)

SUHA ARAFAT, WIFE OF YASSER ARAFAT (through translator): This is an appeal to the Palestinian people from Yasser Arafat's bedside. Let it be known to the honest people of Palestine, a group of inheritor wannabes are coming to Paris trying to bury Abu Ammar alive.

I ask you to understand the scope of this conspiracy. I tell you they are trying to bury Abu Ammar alive. Abu Ammar is well and will return to his homeland. Let it be a revolution until victory. God is great. God is great.

(END VIDEO CLIP)

SWEENEY: And indeed, those inheritors and wannabes that Suha Arafat referred to in that sound bite, include the members of this delegations. They are: the current Prime Minister Qorei, the former Prime Minister Abu Mazen, and who is also the deputy chief of the PLO, also the Foreign Minister Nabil Shaath and the speaker of the legislative assembly. Now, that is person is a very important person, because he is the person in the event of the death Yasser Arafat who will assume power for 60 days until elections are held.

Suha Arafat clearly very worried that these men will come to Paris. She at the moment is still not agreeing to them visiting his bedside. But they are on route, as you say, expected here in about six hours time, a visit with the French foreign minister on the cards tomorrow. And after that we shall see whether or not they will be able to visit Yasser Arafat, who remains in a critical but stable position.

KAGAN: And Fionnuala, according to French law, it is Mrs. Arafat who does control access to her husband and any medical decisions, or in terms of information that's released. Is that correct?

SWEENEY: Well, that is exactly the nub of the problem. If you remember about a week ago, Leila Shahid who is the Palestinian envoy to Paris, really they made quite regular statements to the press about Yasser Arafat's health. It was on Wednesday when he suddenly took this sudden deterioration for the worse, that Suha Arafat stepped and began to severely limit and control the of amount of information that was coming from the hospital.

So, we have these very vague and short hospital statements about his condition, really not shedding any light on him whatsoever. That accompanied by what we, as journalists, were hearing from the Palestinian delegations here accompanying Arafat, which gave us very strong indications he was seriously ill.

So, the Palestinian Authority here really trying, I think, to dispel the rumors that have been surrounding the whole situation over the last number of days. But as you say, under French law she is the next of kin. And thus such, it is up to her who visits his bedside and what the hospital officials can say publicly -- Daryn.

KAGAN: Fionnuala Sweeney in Paris. Fionnuala, thank you.

SANCHEZ: And we're following the very latest developments coming out of Falluja, a place where U.S. Marines are indeed moving in now. We should let you know it's a delicate situation for Marines. This is a city that has some 200 mosques and possibly some 90,000 residents still living there. The rest of the three to 500,000 apparently have already evacuated.

KAGAN: And also, we have other news ahead. The man who shot Ronald Reagan is asking for more. Still to come on CNN LIVE TODAY, John Hinckley's attempt for some additional freedom.

SANCHEZ: Also, sequestered all weekend, the jurors in Scott Peterson's trial coming together again.

KAGAN: And later, escaping Bush country? We'll tell you why more and more people are talking about packing up and moving out.

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SANCHEZ: Welcome back to CNN LIVE TODAY.

About an hour from now, jurors are going to begin a fourth day of deliberations in the Scott Peterson murder trial. And now after months of testimony and mounds of evidences, it is the jury that is under microscope.

CNN's David Mattingly explains.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): They are some of the last pictures taken of Scott and Laci Peterson together, less than two weeks before her disappearance. A time when their closest friends and family believed them to be the picture of a happy couple.

The photographs were among more 50 exhibits released Friday by the court that tried Scott Peterson for murder. They included the gun found in his truck and the date book where he made reference to an "Important date for Amber." Amber Frey, his former secret girlfriend.

They are just a fraction of the 300 plus pieces of evidence and nearly 200 witnesses presented for the jury to consider, as they try to determine whether or not Scott Peterson killed his wife.

ROBERT TALBOT, PROFESSOR, UNIV. OF SAN FRANCISCO LAW SCHOOL: One of the things I think that jurors are struggling about is that they've been hearing things for five months. And it's very difficult to retain things for five months.

MATTINGLY: It's a task made difficult by a case with no murder weapon or cause of death. After just two and a half days of deliberations, the jury of six men and six women called it a week. And residents of the burgeoning tent city of media outside the courthouse moved from stand by to stand down.

PAULA CANNY, LEGAL ANALYST: Where it's their spouse or mother- in-law or the media, every one of those people know that no matter what they decide, it's going to be second-guess.

MATTINGLY: As they deliberate, the jurors have also lost their freedom. They were sequestered for the weekend at a local hotel with limited TV viewing, no access to news and no incoming phone calls.

HOWARD VARINSKY, PROSECUTION JURY CONSULTANT: It's a prison in a way. I mean it's very isolating and it's very empty in a way. And I've never -- I've spoken to a number of jurors who have been sequestered in major cases, and I've not ever heard one that was happy about it.

MATTINGLY: Jurors are due to get back to business Monday morning, led by a foreman who is both a doctor and a lawyer.

(on camera): He is also one juror who appeared to take detailed notes. He left the courtroom with a stack of notebooks in hand. Clearly to be used as he guides the jury through these life and death deliberations.

David Mattingly, CNN, Redwood City, California.

(END VIDEOTAPE) KAGAN: And we've other "Legal Briefs" to talk about today in a look at our docket. A hearing is underway this hour for Ronald Reagan's would be assassin John Hinckley Jr.

SANCHEZ: Yes. A federal judge is considering more freedom for Hinckley, who's been hospitalized since the 1981 attempt. His attorneys are asking for five-day unsupervised visits to his parents home every two-week.

KAGAN: Former NHL player Mike Danton faces sentencing today in a murder for hire plot. Danton entered a guilty plea to the charges this past summer, and faces seven to 10 year in prison. Prosecutors say he wanted to kill his agent.

SANCHEZ: And now on the Kobe Bryant case. A friend of the accuser said that she revealed plans to sue the NBA star in civil court. It's about a month after the alleged rape. The friend said the money would be used to pay for breast implants, a koala bear, and recording studio. An attorney for the alleged victim denies the friend's claims.

KAGAN: Sounds like it's time to get some new friends.

(LAUGHTER)

KAGAN: Yes. Are brokerage firm getting you the best deals or are they pulling the wool over your eyes?

SANCHEZ: Yes. Still to come, why you may want to pay closer attention to your portfolio today. We'll explain.

But first, here's Gerri Willis.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, guys. We're talking about dream houses today. How to build your own. We'll tell you about the steps you'll need to take if you want to do it by yourself when CNN LIVE TODAY continues.

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SANCHEZ: Well, are you thinking about building your dream home but you don't know quite where to start? It's arduous process. CNN's personal finance editor Gerri Willis has today's "Top Five Tips" for making that dream come true.

Hey, Gerri. Where do we start?

WILLIS: Hey, there. Well, you know, you've got to start with settling on your dream house. I know you think you've got to the have the bells and whistles. But guess what? You're probably going to have to come up with a design that you work on with a partner, maybe a spouse.

So, you've got to decide how many bedrooms, how many baths, who wants contemporary, who wants traditional. Try to get these things in line decided before you hire the architect or even a contractor. SANCHEZ: And how do you find what you want to settle on? What do you use to achieve that -- Gerri?

WILLIS: Well, you know, DIY, can stand for design it yourself not just do it yourself. A lot people these days don't even use an architect. Very common now to buy pre-made plans and then alter them a little bit to your specifications. There are a ton of Web sites you can go to here: explans.com, dreamhomesore.com. You see here now, punchsoftware. Check those out.

You know, you're not going to pay a ton for the plans. Maybe $200 to get a good look at them and then choose between a variety. And then you have to go find a contractor.

SANCHEZ: All right. There you have the process. Now how do you actually make it happen?

WILLIS: You've got to find a good contractor. Interview them; see their work on-site, you definitely have to check out what they're doing. And not just the general contractor, the person who's going to run the whole project, but the people who work for them.

The people who are going to lay your floor, put in your kitchen cabinets, all of them. You need to understand what level of work they've done in the past by checking it out. One good place to check out builders in your area, nahb.org.

And quickly one other thing here, do not pay everything up front. You will have no control over the process.

SANCHEZ: Yes.

WILLIS: Dole your money out a little bit at a time.

SANCHEZ: What do you -- you know, you look at all of these new homes, or you walk into the lobby of a hotel and see beautiful marble and the hardwood floors. That stuff is really expensive though, Gerri.

WILLIS: Well, it can be. You can spend a ton of dough on stuff like that. Or you can buy some of the new materials designed to look just like the fabulous hardwood floor, but much cheaper and durable, very durable indeed. Hardwood floors, granite counter tops, even Italian tile, you can find lower cost alternatives that look just like it. Go to toolbase.org for some ideas here. It's really worth checking out.

SANCHEZ: You know, I find sometimes, some of those materials are more durable than the real ones.

WILLIS: That's right. Absolutely right.

SANCHEZ: How do you make sure in the end that it all comes through right? In other words, it's one thing to build it, it's another thing to have it right. WILLIS: Absolutely. Well, you've heard of the punch list. You want actually the contractor to make up that last punch list. Because they probably know more about what could go wrong than you do. Have them put together a punch list, work through those last items.

And don't forget, you really want to hire an inspector to look over the property before you sign on the dotted line. It's a great idea. It cost you a couple hundred bucks, but they can see things that you wouldn't. Try nahi.org to find an inspector who has a real track record.

SANCHEZ: Gerri Willis, thanks so much for that great information.

WILLIS: Thank you.

KAGAN: Still to come, Iraqi and U.S. forces facing a battle with a city of armed insurgents.

SANCHEZ: Now what's ahead, the showdown in Falluja. We're going to talk to CNN analyst Ken Pollack.

KAGAN: And later, a lesson learned after going for an accidental swim in a nearby pool.

(COMMERCIAL BREAK)

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