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Hostage Standoff in Athens, Greece; Interview With Japan's Prime Minister

Aired December 15, 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: More than 20 people held at gun point in the streets of Athens. A tense hijacking standoff unfolding at this hour.
The call for better armor on the deadly roads of Iraq. And now new pictures of insurgent attacks bring questions on just what is needed there.

Police investigate a mysterious discovery in the BTK serial killings, a package that may include one victim's driver's license.

And my exclusive interview with Japan's prime minister, as our coverage live in Tokyo continues today on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING, with Soledad O'Brien in New York and from Tokyo, Japan, Bill Hemmer.

HEMMER: Hello again, everybody. Live in Tokyo. Day three of our coverage here from Japan. Our last day here, and the biggest crowd all week turning out here to see our program. It's been a great visit to this wonderful country, linked to the U.S. in so many ways. We'll talk about those ways in a few moments with my exclusive interview with the Prime Minister Junichiro Koizumi. A number of big issues facing this country, from Iraq to regional security, and we'll also talk about Koizumi's relationship with President Bush. We'll have all that for you in a couple minutes, live in Tokyo.

First back to New York for the first time this morning to check in say good morning, ohayo to my partner, Soledad. Good morning, Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Bill. Thank you.

Lots to cover here as well. We're going to get you an update on that Greek bus hijacking in just a moment. Also, we're going to talk with former U.S. administrator to Iraq Paul Bremer. He was honored by President Bush yesterday, with the Presidential Medal of Freedom, joining the pope, Mother Teresa, Johnny Carson, just to name a few others, who are on that list of recipients. We're going to talk with him this morning about the current situation in Iraq. Is the battle against insurgents being managed the right way as elections draw closer, just ahead.

First, Mr. Cafferty. Good morning.

JACK CAFFERTY, CNN ANCHOR: The pope, Mother Teresa and Paul Bremer.

O'BRIEN: Bob Hope.

CAFFERTY: The pope, mother Teresa and Paul Bremer.

I just report it, Jack.

The government has yet another idea on how to annoy the hell out of people who use the airlines. It's not like we don't have enough to do with all the extra security and all the other stuff we go through at the airports. Wait until you hear what they are contemplating now.

O'BRIEN: All right, thank you, Jack.

CAFFERTY: Paul Bremer, the pope and Mother Teresa.

O'BRIEN: Just report it.

CAFFERTY: I want to make sure that -- yes.

O'BRIEN: You got it. I can move on? Thank you.

A hostage standoff in Athens, Greece now stretching into its eighth hour. Authorities say at least two armed men strapped with explosives are holding more than 20 passengers hostage on a commuter bus. They're reportedly demanding that a driver take them to the airport, then they want to be flown to Russia.

CNN correspondent Anthee Carassavas joins us by phone from Athens this morning.

Good morning.

We are joined by phone from Athens this morning. Good morning.

ANTHEE CARASSAVAS, CNN CORRESPONDENT: Good morning, Soledad.

In the last hour, five passengers have been released from this commuter bus. The first release came at the sixth hour of this crisis. It was a 55-year-old man who suffered heart problems, an additional four passengers, two men, two women, released shortly thereafter.

Authorities say this is a positive development. It means negotiations between police and the hijackers are going well. The identity of these hijackers remains in question. They -- the identity has not been officially disclosed, although a senior police official I've been speaking to, did, in fact, identify them in the end as Albanian. The Albanian ambassador and the Albanian public order minister -- the Albanian ambassador, I'm sorry, is presently at the site of the hostage situation. The Albanian public order minute minister has been contacted twice this day by his Greek counterpart.

These are proof, these are signs that, in fact, we are dealing with an Albanian criminal. Another interesting development, this police source was also pointing to the fact that authorities here, as part of this huge operation to diffuse the situation here, have activated again these special security cameras that were installed during the Olympic Games, that these cameras were deactivated with the Games -- with the end of the Games. Now they're being used for this operation -- Soledad.

O'BRIEN: All right, well, we'll wait and see, and monitor progress in this situation.

Anthee Carassavas, joining us, CNN correspondent, from that location.

Let's get to some of the other stories that are now in the news with Kelly Wallace sitting in this morning.

Hello, good morning.

KELLY WALLACE, CNN ANCHOR: Great to see you, as always, Soledad. And good morning, everyone.

Now in the news, CNN learning the man known as Chemical Ali will be the first member of the former Iraqi regime to stand trial. Ali Hassan Al Majid is known for his alleged role in the 1988 chemical attack on Iraq's Kurdish population. An Iraqi official says Al Majid and at least 10 other high-profile members of Saddam Hussein's regime face war crime proceedings set to begin before the end of the month.

Back here in the United States, the first full flight test of the multibillion missile defense system has failed. The Pentagon says a mock warhead was fired off Kodiak Island in Alaska, but that an anomaly caused the interceptor missile shut down before launching. It was the missile defense program's first test in almost two years.

Federal investigators are studying a package that may hold clues to a decades-old serial killing. Among its contents, what appears to be the driver's license of one of the victims of the killer who calls himself BTK. BTK stands for bind, torture, kill. The killer is linked to eight murders, dating back to 1974. He resurfaced in March, writing letters to the media and police.

And to the White House now, where just over six hours from now President Bush expected to address a two-day conference aimed at boosting his plans for the economy. The president hoping the forum will set the stage for major initiatives during his second term. Those include more tax cuts and more jobs, putting caps on lawsuit awards, and changes in Social Security. And, Soledad, those Social Security changes likely to be the biggest battle for the president and the Congress.

O'BRIEN: The most controversial certainly. All right, Kelly, thanks.

Let's go back to Tokyo now, and Bill Hemmer.

Hey, Bill.

HEMMER: All right, Soledad, thanks. Now to my exclusive interview with the prime minister here in Japan.

Junichiro Koizumi heads a country with the second largest economy in the world. He's been one of the strongest allies for the United States and President Bush currently in the war on terror.

Since we've arrived here in Japan, major decisions have been announced. Japan will realign it's military strategy, defending itself against the threat from North Korea. Japanese troops will stay in Iraq for another year at least. And that decision has put the prime minister's approval rating at an all-time low.

And it was also the topic of Iraq that began my conversation today when we sat down at the Kumta (ph), his office here in central Tokyo.

(BEGIN VIDEOTAPE)

HEMMER: Thank you, Mr. Prime Minister, for your time today. Why is it important for Japan to be in Iraq today?

JUNICHIRO KOIZUMI, PRIME MINISTER OF JAPAN (THROUGH TRANSLATOR): If we recognize that Japan is enjoying its development and prosperity thanks to the peace and stability in the world, we should never allow Iraq to turn into a hub for terrorists.

HEMMER: Your decision is not popular in this country. There's some polling that suggests more than 80 percent think the reasoning that you provided is considered insufficient.

What would you say to those 80 percent of your own country men and women as to why, at least at this time now, Japanese troops remain?

KOIZUMI (THROUGH TRANSLATOR): If we were to turn down their request, would that be a reasonable thing for the Japanese government to do, as a member of the international society, to disappoint the willingness that the Iraqis have to, once again, get back on their feet?

HEMMER: President Bush has said that he considers you a friend. What do you consider your relationship to be with him?

KOIZUMI (THROUGH TRANSLATOR): If asked why do our wavelengths match so perfectly, why are we so good friends with each other, it is very difficult to explain specifically why. We mutually are on the right wave length.

Ever since the terror attacks of 9/11, we sharing common objectives, common perceptions, common notions, have acted in concrete terms in order to uphold and defend values that are dear to us mutually.

And I think it is that action, the fact that we have mutually engaged in such action on the ground, that has really provided the underpinning for this relationship of mutual trust.

HEMMER: On the topic of North Korea, what would you like to see the White House do more in order to, perhaps, alleviate the tension that is coming out of North Korea? Because in the headlines here in Japan, we see stories about North Korea every day in our newspapers. What could Washington do more and this president do more?

KOIZUMI (THROUGH TRANSLATOR): You really have to think about using both negotiations in the public eye and negotiations behind closed doors.

And then as far as North Korea is concerned, for the interest of their security, I believe the framework of the six-party talks would be best.

I, myself, have directly told Mr. Kim Jong Il on several occasions that North Korea will have much more to gain by disposing nuclear weapons than by owning them.

But it seems that Mr. Kim Jong Il cannot really get U.S. off of his mind.

(END VIDEOTAPE)

HEMMER: As for the 58,000 U.S. military personnel serving here in Japan, the prime minister admits readily that reductions may happen, but today he says they are needed to ensure Japan's security.

Now a bit later this hour, we're going to go back to that interview, Soledad. We're going to show you what happened at the end. The prime minister is a huge fan of Elvis Presley. It was a charming karaoke moment. He led, I jumped in. We'll visit that at the half hour.

Back to you now in New York City.

O'BRIEN: Be afraid. Be very afraid. We're looking forward to it, Bill. Thanks.

With insurgent attacks in Iraq becoming increasingly sophisticated, the U.S. military is trying to find new ways to protect troops. Barbara Starr joined us from the Pentagon this morning with some details and some disturbing videotape as well, we have to say.

Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Well, indeed, it is now really the toughest problem in Iraq, how to deal with those roadside bomb attacks.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Another roadside bomb detonates a typical attack that has killed or wounded hundreds of American troops. The insurgent's camera keeps rolling as U.S. soldiers help those wounded in the Humvee. CNN asked military expert James Carafano to look at the video to see what can be learned.

JAMES CARAFANO, HERITAGE FOUNDATION: It's good for the Americans to know that there could be somebody watching them when they do these things and that it's good for the Americans to look at to see how they respond to it in looking for things the bad guys might see in the way the respond to it.

STARR: U.S. troops are stepping up countermeasures. Every attack is analyzed. Convoy routes are changed often. There is more reconnaissance. Military officials emphasize that armor alone, the subject of so much controversy, is not the total solution against improvised explosive devices.

BRIG. GEN. DAVID RODRIGUEZ, JOINT CHIEFS STAFF: You're looking at every place by how the thing was put together, how it was detonated, what type of material was used in it, what type of technology because people design things differently.

STARR: New intelligence indicates explosives set off to the side of the road are proving very deadly. Part of the longer term solution, new armored vehicles are being tested on the streets of Iraq that can better survive attacks, including a new version of the armored Humvee with a mounted laser that can destroy explosives up to 250 meters away.

New armored security vehicles are with U.S. military police units. They can survive 12-pound blasts under each wheel. Many convoys now carry jammers designed to keep remotely detonated devices from exploding but some convoys still travel dangerous roads without these high tech packages.

And, Soledad, another initiative by the Air Force, in the last month, as these attacks have continued, the Air Force has stepped up its cargo flights into Iraq, increasing those flights by 30 percent. They estimate that will help keep 400 trucks and more than 1,000 military personnel off those dangerous roads in Iraq -- Soledad.

O'BRIEN: Good news. All right, for us this morning from the Pentagon. Barbara, thanks.

Still to come this morning, the very latest on that Greek hostage situation as we learn more about the demands of those armed men who are holding a busful of people in Athens.

Also the first trial for former members of the Saddam Hussein regime now announced. We're going to ask former Iraq administrator Paul Bremer if he's surprised by the choice.

And it's not like Anna Kournikova to keep a secret, but our "90- Second Pop" crew is going to tell us if the former tennis (INAUDIBLE) has made a permanent love match. That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: It is the country's highest civilian war, the Presidential Medal of Freedom. Yesterday, President Bush bestowed that honor on three men who played key roles in executing his Iraq policy, former CIA director George Tenet, retired General Tommy Franks and former Iraq administrator Paul Bremer.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The job was demanding, requiring personal courage, calmness under fire and hundreds of decisions every day. Yet Jerry not only rose to the challenge, he found time nearly every day to study the Arabic language.

(END VIDEO CLIP)

O'BRIEN: Joining us this morning from Washington is ambassador Paul Bremer.

Nice to see you, sir. Congratulations. It's has got to feel pretty good, right?

AMB. L. PAUL BREMER, FMR. U.S. ADMINISTRATOR IN IRAQ: Nice to be with you, thank you.

O'BRIEN: How does it feel to win, I mean, as we mentioned, the highest civilian honor. It's pretty amazing. How does it feel?

BREMER: It's an honor for me, but it really is also an honor for the 3,000 civilians who worked for me in the Coalition Provisional Authority from -- they were all volunteers from 17 countries, and they really did the hard work.

O'BRIEN: Some people have said it's a surprise to have that honor bestowed so quickly after your service ends, and considering that the -- we haven't quite made it through the Iraq elections, there's a lot to be completed and done in Iraq. Do you think it is a surprise, the timing to some degree?

BREMER: Oh, I don't want to second-guess the timing. I think what's important to bear in mind about Iraq is that the process is ongoing. I think we'll have these elections in January, and that will be another step toward a representative government there.

I think we need to keep a little perspective here about things. It takes time to change a society that's been under a brutal dictatorship for 25 years. It's not going to happen overnight. There will be ups and downs, but the trend line is the right direction.

O'BRIEN: You have said in the past there were not enough troops on the ground during the invasion of Iraq. Do you think now there are enough troops there?

BREMER: You know, I've been away for six months, so I don't think it's a good idea for me to join the commentators who don't know what they're talking about. I think I would defer to the commander- in-chief and to the secretary of defense on that subject. O'BRIEN: When you look back, though, and see the degree to which not employing the members of the Iraqi army, or the de-Baathification process what role are those steps playing now in dealing with the insurgency that are potentially threatening the election?

BREMER: I think the decisions that we made early on to eliminate a very small percent, 1 percent, of the members of the Baath Party from public service, and to recognize the fact that the army had been disbanded, these are important decisions, and I think went a very long way to avoiding a civil war in Iraq in 2003.

We'll have to see now how the process goes forward, but as I say, I'm optimistic about the future, though I think we can expect they'll be ups and downs.

O'BRIEN: Do you read it as a down that Saddam Hussein is not going to be one of the first to go to trial when that happens next week? Are you surprised by that?

BREMER: No, I'm not surprised at all. I think all of us who were involved in the -- helping the Iraqis get ready for these trials recognized that it would take time to get ready for any of them. I'm surprised they're able to do it as quickly as they are. In many cases it's better to start with some of the lower people, as most prosecutors will tell you, and work your way up to the big guys. So I'm not surprised that he's not on the first list.

O'BRIEN: Cynics will point to the timing there as well as trying to boost the acting Prime Minister's Allawi's role. Do you think that that's fair, knowing him?

BREMER: No, I think he is a dedicated, patriotic and very courageous man who's undertaken a very tough job. And I think they have said all along, indeed a year and a half ago when the first Iraqi government came to power, the very first thing they decided was to set up this special tribunal and start to work on getting these prosecutions ready. It's taken them a year and a half. That's not exactly rushing.

O'BRIEN: Before I let you go, we had mentioned some of the folks who previously won the presidential medal of honor. It's an amazing list. I mean, the Pope, Rosa Parks, Mother Teresa, Kirk Douglas, you know, the list goes on and on and on. When you win something like that, that's that big, do you kind of think about your place in history? I mean, not a lot of people get this.

BREMER: Well, of course I'm deeply honored that the president chose to give it to me. I'll let the historians write the history books about our time in Iraq.

O'BRIEN: All right. Paul Bremer, ambassador joining us this morning. Nice to see you, sir. Thank you.

BREMER: Thank you.

O'BRIEN: And let's go back to Tokyo and Bill Hemmer -- Bill. HEMMER: All right, Soledad. In a moment here, he is not the king, he is prime minister in this country. He's also a huge Elvis Presley fan. Listen here. Singing with the prime minister in a moment as we continue here live in Tokyo.

(COMMERCIAL BREAK)

O'BRIEN: After months of talks, big developments in the merger of two wireless giants. We'll look at that and the market. Andy Serwer is "Minding Your Business." We've been talking merger, merger, merger all week.

HEMMER: That's right. A lot of stuff going on. And it's official this morning, Soledad. Sprint and Nextel announcing their merger just about 50 minutes ago. This will create the nation's third largest wireless company, with about 35 million subscribers and $34 billion in revenues, after Cingular and Verizon, and will also end speculation that Verizon was going to step in and buy Sprint. That's not going to happen.

Other stuff going on yesterday, the Federal Reserve did raise interest rates by a quarter point to 2.25 percent, the fifth time this year. And basically left its anticipation that it would raise rates going into next year as well. You can see here also, the markets responded, going up. All indexes going up.

And let's see, one other note here this morning, wanted to mention, this marks the last broadcast day of our sister network, CNNfn. It has been up and running for about nine years. They did some great work over there. And we want to wish everyone there our best.

O'BRIEN: That's right. They're having a big party over there today to celebrate their final day.

ANDY SERWER, "FORTUNE" MAGAZINE: Good.

O'BRIEN: Thank you, Andy.

CAFFERTY: I actually started at CNNfn when I joined this company about six years ago. Did the early morning program there and can say without hesitation it was the most fun I had in the 41 years I've been in this business.

SERWER: That was a great program.

CAFFERTY: It was a lot of fun. And those are terrific people. It was just a lot of yucks, we had good times.

SERWER: Yep.

CAFFERTY: Yep.

SERWER: Yuck.

CAFFERTY: Mother Teresa, no, that's not going to -- the FCC begins considering rules today that would allow cell phones to be used while an airplane is in flight. Gee, there's a good idea. The government currently bans devices that emit radio signals, that would be a cell phone, because it interferes with a plane's communications and electronics, but there are new technologies to cope with that and there is apparently a growing consumer pressure to ease restrictions against cell phones. These days an airplane is about the only place left where you can get away from the damn things. Why ruin that?

Here's the question, should cell phones be allowed during flight? Am@cnn.com.

SERWER: And we know where you stand.

O'BRIEN: I was going say, we know you don't have a cell phone.

CAFFERTY: Well, I just -- that doesn't apply to me because I don't have one. But I don't -- I hate listening to those things. I just said people, you know, they should make them go in the bathroom if they want to talk on those things.

SERWER: Anywhere.

O'BRIEN: It's convenient. Everyone's got one. I don't know. I don't -- I'm not all that...

CAFFERTY: Well, you could say that about a lot of things.

SERWER: Oh, here he goes again.

O'BRIEN: Again, moving on.

CAFFERTY: Think about that for a minute.

SERWER: Yes, you got to -- start reading. Start reading what's in there, Soledad.

(CROSSTALK)

O'BRIEN: I'm going to turn to the prompter, and say still to come, the Wednesday edition of "90 Second Pop."

(MUSIC)

O'BRIEN: They say in tennis, love means nothing. But check out Anna Kournikova's ring finger. Is she hitched? Plus, Madonna heading back to the big screen, but will her husband will give her a starring role after her spring of flops? Details ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired December 15, 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: More than 20 people held at gun point in the streets of Athens. A tense hijacking standoff unfolding at this hour.
The call for better armor on the deadly roads of Iraq. And now new pictures of insurgent attacks bring questions on just what is needed there.

Police investigate a mysterious discovery in the BTK serial killings, a package that may include one victim's driver's license.

And my exclusive interview with Japan's prime minister, as our coverage live in Tokyo continues today on this AMERICAN MORNING.

ANNOUNCER: This is AMERICAN MORNING, with Soledad O'Brien in New York and from Tokyo, Japan, Bill Hemmer.

HEMMER: Hello again, everybody. Live in Tokyo. Day three of our coverage here from Japan. Our last day here, and the biggest crowd all week turning out here to see our program. It's been a great visit to this wonderful country, linked to the U.S. in so many ways. We'll talk about those ways in a few moments with my exclusive interview with the Prime Minister Junichiro Koizumi. A number of big issues facing this country, from Iraq to regional security, and we'll also talk about Koizumi's relationship with President Bush. We'll have all that for you in a couple minutes, live in Tokyo.

First back to New York for the first time this morning to check in say good morning, ohayo to my partner, Soledad. Good morning, Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning to you, Bill. Thank you.

Lots to cover here as well. We're going to get you an update on that Greek bus hijacking in just a moment. Also, we're going to talk with former U.S. administrator to Iraq Paul Bremer. He was honored by President Bush yesterday, with the Presidential Medal of Freedom, joining the pope, Mother Teresa, Johnny Carson, just to name a few others, who are on that list of recipients. We're going to talk with him this morning about the current situation in Iraq. Is the battle against insurgents being managed the right way as elections draw closer, just ahead.

First, Mr. Cafferty. Good morning.

JACK CAFFERTY, CNN ANCHOR: The pope, Mother Teresa and Paul Bremer.

O'BRIEN: Bob Hope.

CAFFERTY: The pope, mother Teresa and Paul Bremer.

I just report it, Jack.

The government has yet another idea on how to annoy the hell out of people who use the airlines. It's not like we don't have enough to do with all the extra security and all the other stuff we go through at the airports. Wait until you hear what they are contemplating now.

O'BRIEN: All right, thank you, Jack.

CAFFERTY: Paul Bremer, the pope and Mother Teresa.

O'BRIEN: Just report it.

CAFFERTY: I want to make sure that -- yes.

O'BRIEN: You got it. I can move on? Thank you.

A hostage standoff in Athens, Greece now stretching into its eighth hour. Authorities say at least two armed men strapped with explosives are holding more than 20 passengers hostage on a commuter bus. They're reportedly demanding that a driver take them to the airport, then they want to be flown to Russia.

CNN correspondent Anthee Carassavas joins us by phone from Athens this morning.

Good morning.

We are joined by phone from Athens this morning. Good morning.

ANTHEE CARASSAVAS, CNN CORRESPONDENT: Good morning, Soledad.

In the last hour, five passengers have been released from this commuter bus. The first release came at the sixth hour of this crisis. It was a 55-year-old man who suffered heart problems, an additional four passengers, two men, two women, released shortly thereafter.

Authorities say this is a positive development. It means negotiations between police and the hijackers are going well. The identity of these hijackers remains in question. They -- the identity has not been officially disclosed, although a senior police official I've been speaking to, did, in fact, identify them in the end as Albanian. The Albanian ambassador and the Albanian public order minister -- the Albanian ambassador, I'm sorry, is presently at the site of the hostage situation. The Albanian public order minute minister has been contacted twice this day by his Greek counterpart.

These are proof, these are signs that, in fact, we are dealing with an Albanian criminal. Another interesting development, this police source was also pointing to the fact that authorities here, as part of this huge operation to diffuse the situation here, have activated again these special security cameras that were installed during the Olympic Games, that these cameras were deactivated with the Games -- with the end of the Games. Now they're being used for this operation -- Soledad.

O'BRIEN: All right, well, we'll wait and see, and monitor progress in this situation.

Anthee Carassavas, joining us, CNN correspondent, from that location.

Let's get to some of the other stories that are now in the news with Kelly Wallace sitting in this morning.

Hello, good morning.

KELLY WALLACE, CNN ANCHOR: Great to see you, as always, Soledad. And good morning, everyone.

Now in the news, CNN learning the man known as Chemical Ali will be the first member of the former Iraqi regime to stand trial. Ali Hassan Al Majid is known for his alleged role in the 1988 chemical attack on Iraq's Kurdish population. An Iraqi official says Al Majid and at least 10 other high-profile members of Saddam Hussein's regime face war crime proceedings set to begin before the end of the month.

Back here in the United States, the first full flight test of the multibillion missile defense system has failed. The Pentagon says a mock warhead was fired off Kodiak Island in Alaska, but that an anomaly caused the interceptor missile shut down before launching. It was the missile defense program's first test in almost two years.

Federal investigators are studying a package that may hold clues to a decades-old serial killing. Among its contents, what appears to be the driver's license of one of the victims of the killer who calls himself BTK. BTK stands for bind, torture, kill. The killer is linked to eight murders, dating back to 1974. He resurfaced in March, writing letters to the media and police.

And to the White House now, where just over six hours from now President Bush expected to address a two-day conference aimed at boosting his plans for the economy. The president hoping the forum will set the stage for major initiatives during his second term. Those include more tax cuts and more jobs, putting caps on lawsuit awards, and changes in Social Security. And, Soledad, those Social Security changes likely to be the biggest battle for the president and the Congress.

O'BRIEN: The most controversial certainly. All right, Kelly, thanks.

Let's go back to Tokyo now, and Bill Hemmer.

Hey, Bill.

HEMMER: All right, Soledad, thanks. Now to my exclusive interview with the prime minister here in Japan.

Junichiro Koizumi heads a country with the second largest economy in the world. He's been one of the strongest allies for the United States and President Bush currently in the war on terror.

Since we've arrived here in Japan, major decisions have been announced. Japan will realign it's military strategy, defending itself against the threat from North Korea. Japanese troops will stay in Iraq for another year at least. And that decision has put the prime minister's approval rating at an all-time low.

And it was also the topic of Iraq that began my conversation today when we sat down at the Kumta (ph), his office here in central Tokyo.

(BEGIN VIDEOTAPE)

HEMMER: Thank you, Mr. Prime Minister, for your time today. Why is it important for Japan to be in Iraq today?

JUNICHIRO KOIZUMI, PRIME MINISTER OF JAPAN (THROUGH TRANSLATOR): If we recognize that Japan is enjoying its development and prosperity thanks to the peace and stability in the world, we should never allow Iraq to turn into a hub for terrorists.

HEMMER: Your decision is not popular in this country. There's some polling that suggests more than 80 percent think the reasoning that you provided is considered insufficient.

What would you say to those 80 percent of your own country men and women as to why, at least at this time now, Japanese troops remain?

KOIZUMI (THROUGH TRANSLATOR): If we were to turn down their request, would that be a reasonable thing for the Japanese government to do, as a member of the international society, to disappoint the willingness that the Iraqis have to, once again, get back on their feet?

HEMMER: President Bush has said that he considers you a friend. What do you consider your relationship to be with him?

KOIZUMI (THROUGH TRANSLATOR): If asked why do our wavelengths match so perfectly, why are we so good friends with each other, it is very difficult to explain specifically why. We mutually are on the right wave length.

Ever since the terror attacks of 9/11, we sharing common objectives, common perceptions, common notions, have acted in concrete terms in order to uphold and defend values that are dear to us mutually.

And I think it is that action, the fact that we have mutually engaged in such action on the ground, that has really provided the underpinning for this relationship of mutual trust.

HEMMER: On the topic of North Korea, what would you like to see the White House do more in order to, perhaps, alleviate the tension that is coming out of North Korea? Because in the headlines here in Japan, we see stories about North Korea every day in our newspapers. What could Washington do more and this president do more?

KOIZUMI (THROUGH TRANSLATOR): You really have to think about using both negotiations in the public eye and negotiations behind closed doors.

And then as far as North Korea is concerned, for the interest of their security, I believe the framework of the six-party talks would be best.

I, myself, have directly told Mr. Kim Jong Il on several occasions that North Korea will have much more to gain by disposing nuclear weapons than by owning them.

But it seems that Mr. Kim Jong Il cannot really get U.S. off of his mind.

(END VIDEOTAPE)

HEMMER: As for the 58,000 U.S. military personnel serving here in Japan, the prime minister admits readily that reductions may happen, but today he says they are needed to ensure Japan's security.

Now a bit later this hour, we're going to go back to that interview, Soledad. We're going to show you what happened at the end. The prime minister is a huge fan of Elvis Presley. It was a charming karaoke moment. He led, I jumped in. We'll visit that at the half hour.

Back to you now in New York City.

O'BRIEN: Be afraid. Be very afraid. We're looking forward to it, Bill. Thanks.

With insurgent attacks in Iraq becoming increasingly sophisticated, the U.S. military is trying to find new ways to protect troops. Barbara Starr joined us from the Pentagon this morning with some details and some disturbing videotape as well, we have to say.

Barbara, good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Well, indeed, it is now really the toughest problem in Iraq, how to deal with those roadside bomb attacks.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Another roadside bomb detonates a typical attack that has killed or wounded hundreds of American troops. The insurgent's camera keeps rolling as U.S. soldiers help those wounded in the Humvee. CNN asked military expert James Carafano to look at the video to see what can be learned.

JAMES CARAFANO, HERITAGE FOUNDATION: It's good for the Americans to know that there could be somebody watching them when they do these things and that it's good for the Americans to look at to see how they respond to it in looking for things the bad guys might see in the way the respond to it.

STARR: U.S. troops are stepping up countermeasures. Every attack is analyzed. Convoy routes are changed often. There is more reconnaissance. Military officials emphasize that armor alone, the subject of so much controversy, is not the total solution against improvised explosive devices.

BRIG. GEN. DAVID RODRIGUEZ, JOINT CHIEFS STAFF: You're looking at every place by how the thing was put together, how it was detonated, what type of material was used in it, what type of technology because people design things differently.

STARR: New intelligence indicates explosives set off to the side of the road are proving very deadly. Part of the longer term solution, new armored vehicles are being tested on the streets of Iraq that can better survive attacks, including a new version of the armored Humvee with a mounted laser that can destroy explosives up to 250 meters away.

New armored security vehicles are with U.S. military police units. They can survive 12-pound blasts under each wheel. Many convoys now carry jammers designed to keep remotely detonated devices from exploding but some convoys still travel dangerous roads without these high tech packages.

And, Soledad, another initiative by the Air Force, in the last month, as these attacks have continued, the Air Force has stepped up its cargo flights into Iraq, increasing those flights by 30 percent. They estimate that will help keep 400 trucks and more than 1,000 military personnel off those dangerous roads in Iraq -- Soledad.

O'BRIEN: Good news. All right, for us this morning from the Pentagon. Barbara, thanks.

Still to come this morning, the very latest on that Greek hostage situation as we learn more about the demands of those armed men who are holding a busful of people in Athens.

Also the first trial for former members of the Saddam Hussein regime now announced. We're going to ask former Iraq administrator Paul Bremer if he's surprised by the choice.

And it's not like Anna Kournikova to keep a secret, but our "90- Second Pop" crew is going to tell us if the former tennis (INAUDIBLE) has made a permanent love match. That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: It is the country's highest civilian war, the Presidential Medal of Freedom. Yesterday, President Bush bestowed that honor on three men who played key roles in executing his Iraq policy, former CIA director George Tenet, retired General Tommy Franks and former Iraq administrator Paul Bremer.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The job was demanding, requiring personal courage, calmness under fire and hundreds of decisions every day. Yet Jerry not only rose to the challenge, he found time nearly every day to study the Arabic language.

(END VIDEO CLIP)

O'BRIEN: Joining us this morning from Washington is ambassador Paul Bremer.

Nice to see you, sir. Congratulations. It's has got to feel pretty good, right?

AMB. L. PAUL BREMER, FMR. U.S. ADMINISTRATOR IN IRAQ: Nice to be with you, thank you.

O'BRIEN: How does it feel to win, I mean, as we mentioned, the highest civilian honor. It's pretty amazing. How does it feel?

BREMER: It's an honor for me, but it really is also an honor for the 3,000 civilians who worked for me in the Coalition Provisional Authority from -- they were all volunteers from 17 countries, and they really did the hard work.

O'BRIEN: Some people have said it's a surprise to have that honor bestowed so quickly after your service ends, and considering that the -- we haven't quite made it through the Iraq elections, there's a lot to be completed and done in Iraq. Do you think it is a surprise, the timing to some degree?

BREMER: Oh, I don't want to second-guess the timing. I think what's important to bear in mind about Iraq is that the process is ongoing. I think we'll have these elections in January, and that will be another step toward a representative government there.

I think we need to keep a little perspective here about things. It takes time to change a society that's been under a brutal dictatorship for 25 years. It's not going to happen overnight. There will be ups and downs, but the trend line is the right direction.

O'BRIEN: You have said in the past there were not enough troops on the ground during the invasion of Iraq. Do you think now there are enough troops there?

BREMER: You know, I've been away for six months, so I don't think it's a good idea for me to join the commentators who don't know what they're talking about. I think I would defer to the commander- in-chief and to the secretary of defense on that subject. O'BRIEN: When you look back, though, and see the degree to which not employing the members of the Iraqi army, or the de-Baathification process what role are those steps playing now in dealing with the insurgency that are potentially threatening the election?

BREMER: I think the decisions that we made early on to eliminate a very small percent, 1 percent, of the members of the Baath Party from public service, and to recognize the fact that the army had been disbanded, these are important decisions, and I think went a very long way to avoiding a civil war in Iraq in 2003.

We'll have to see now how the process goes forward, but as I say, I'm optimistic about the future, though I think we can expect they'll be ups and downs.

O'BRIEN: Do you read it as a down that Saddam Hussein is not going to be one of the first to go to trial when that happens next week? Are you surprised by that?

BREMER: No, I'm not surprised at all. I think all of us who were involved in the -- helping the Iraqis get ready for these trials recognized that it would take time to get ready for any of them. I'm surprised they're able to do it as quickly as they are. In many cases it's better to start with some of the lower people, as most prosecutors will tell you, and work your way up to the big guys. So I'm not surprised that he's not on the first list.

O'BRIEN: Cynics will point to the timing there as well as trying to boost the acting Prime Minister's Allawi's role. Do you think that that's fair, knowing him?

BREMER: No, I think he is a dedicated, patriotic and very courageous man who's undertaken a very tough job. And I think they have said all along, indeed a year and a half ago when the first Iraqi government came to power, the very first thing they decided was to set up this special tribunal and start to work on getting these prosecutions ready. It's taken them a year and a half. That's not exactly rushing.

O'BRIEN: Before I let you go, we had mentioned some of the folks who previously won the presidential medal of honor. It's an amazing list. I mean, the Pope, Rosa Parks, Mother Teresa, Kirk Douglas, you know, the list goes on and on and on. When you win something like that, that's that big, do you kind of think about your place in history? I mean, not a lot of people get this.

BREMER: Well, of course I'm deeply honored that the president chose to give it to me. I'll let the historians write the history books about our time in Iraq.

O'BRIEN: All right. Paul Bremer, ambassador joining us this morning. Nice to see you, sir. Thank you.

BREMER: Thank you.

O'BRIEN: And let's go back to Tokyo and Bill Hemmer -- Bill. HEMMER: All right, Soledad. In a moment here, he is not the king, he is prime minister in this country. He's also a huge Elvis Presley fan. Listen here. Singing with the prime minister in a moment as we continue here live in Tokyo.

(COMMERCIAL BREAK)

O'BRIEN: After months of talks, big developments in the merger of two wireless giants. We'll look at that and the market. Andy Serwer is "Minding Your Business." We've been talking merger, merger, merger all week.

HEMMER: That's right. A lot of stuff going on. And it's official this morning, Soledad. Sprint and Nextel announcing their merger just about 50 minutes ago. This will create the nation's third largest wireless company, with about 35 million subscribers and $34 billion in revenues, after Cingular and Verizon, and will also end speculation that Verizon was going to step in and buy Sprint. That's not going to happen.

Other stuff going on yesterday, the Federal Reserve did raise interest rates by a quarter point to 2.25 percent, the fifth time this year. And basically left its anticipation that it would raise rates going into next year as well. You can see here also, the markets responded, going up. All indexes going up.

And let's see, one other note here this morning, wanted to mention, this marks the last broadcast day of our sister network, CNNfn. It has been up and running for about nine years. They did some great work over there. And we want to wish everyone there our best.

O'BRIEN: That's right. They're having a big party over there today to celebrate their final day.

ANDY SERWER, "FORTUNE" MAGAZINE: Good.

O'BRIEN: Thank you, Andy.

CAFFERTY: I actually started at CNNfn when I joined this company about six years ago. Did the early morning program there and can say without hesitation it was the most fun I had in the 41 years I've been in this business.

SERWER: That was a great program.

CAFFERTY: It was a lot of fun. And those are terrific people. It was just a lot of yucks, we had good times.

SERWER: Yep.

CAFFERTY: Yep.

SERWER: Yuck.

CAFFERTY: Mother Teresa, no, that's not going to -- the FCC begins considering rules today that would allow cell phones to be used while an airplane is in flight. Gee, there's a good idea. The government currently bans devices that emit radio signals, that would be a cell phone, because it interferes with a plane's communications and electronics, but there are new technologies to cope with that and there is apparently a growing consumer pressure to ease restrictions against cell phones. These days an airplane is about the only place left where you can get away from the damn things. Why ruin that?

Here's the question, should cell phones be allowed during flight? Am@cnn.com.

SERWER: And we know where you stand.

O'BRIEN: I was going say, we know you don't have a cell phone.

CAFFERTY: Well, I just -- that doesn't apply to me because I don't have one. But I don't -- I hate listening to those things. I just said people, you know, they should make them go in the bathroom if they want to talk on those things.

SERWER: Anywhere.

O'BRIEN: It's convenient. Everyone's got one. I don't know. I don't -- I'm not all that...

CAFFERTY: Well, you could say that about a lot of things.

SERWER: Oh, here he goes again.

O'BRIEN: Again, moving on.

CAFFERTY: Think about that for a minute.

SERWER: Yes, you got to -- start reading. Start reading what's in there, Soledad.

(CROSSTALK)

O'BRIEN: I'm going to turn to the prompter, and say still to come, the Wednesday edition of "90 Second Pop."

(MUSIC)

O'BRIEN: They say in tennis, love means nothing. But check out Anna Kournikova's ring finger. Is she hitched? Plus, Madonna heading back to the big screen, but will her husband will give her a starring role after her spring of flops? Details ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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