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Terror Indictments; Speech to the Troops; Rumsfeld Visits Iraq; Day Two of Hearings for Bolton

Aired April 12, 2005 - 10:59   ET

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

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


DARYN KAGAN, CNN ANCHOR: We like to start with a look at what's happening right "Now in the News."
Authorities say there's been no sign of an ex-con suspected of killing two people and sexually assaulting a 15-year-old girl.

News of the manhunt for Stephen Stanko broke during this hour yesterday. A lookout has been posted for a 1996 Mazda pickup with license tag 709 PYJ.

We're following a tense situation today in Germany. Police say a man is holding between four and seven children hostage at knifepoint. They say he took the children off a bus and forced them into a basement of a house. There's now word on what the man wants.

President Bush's nominee for U.N. ambassador faces another tough day on Capitol Hill. Day two of hearings on John Bolton's nomination are under way at this hour. Bolton has been grilled over the harsh criticism -- his harsh criticism of the U.N. Testimony today focuses on charges he tried to intimidate State Department officials.

The mother of Michael Jackson's accuser could take the stand as early as today. The pop star's child molestation trial will resume this hour. Yesterday, jurors heard from the mother of a boy Jackson was accused of molesting in 1993. She says Jackson pleaded with her to let her son share his bed.

Just a minute past 11:00 on the East Coast, just past 8:00 on the West. Good morning once again. From the CNN Center in Atlanta, I'm Daryn Kagan.

We're going to begin the hour with a CNN "Security Watch." The Justice Department is expected to announce indictments against three terror suspects today. Those men are accused of scouting U.S. financial buildings for possible attacks.

Our Justice correspondent Kelli Arena joins me in Washington this morning. Details still coming up on this developing story.

Kelli, good morning.

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT: That's right, Daryn, and they've been hard to come by because the indictments remain under seal. We're told that they should come out from under seal about 11:30. But we should get some official comment probably from New York. And then we expect more official comment later on from DOJ here in Washington.

Just to backtrack a bit, you may remember, Daryn, back in August that we had a group of men that were arrested in Britain for allegedly surveiling several targets here in the U.S., financial targets, including the Citicorp building and Wall Street in New York, the Prudential building in New Jersey, and then the IMF and World Bank here in Washington.

Those three individuals, those men who at the time government sources told us there was evidence that they personally conducted that surveillance, are now going to be indicted here in the United States. One of them, we are told by several sources, is Diron Berat (ph). You'd know him or be more familiar with him as Issa al-Hindi. He is described as a pretty high-level al Qaeda operative.

Again, these three men have been in custody since August in Britain. The are facing terror-related charges there. These are U.S. indictments. And I'm also told by a source that after they go through their prosecution and proceedings in Britain, that the U.S. may ask for extradition back here to the United States.

I was able, Daryn, to wrangle a few more details on the charges that they'll be facing. And according to sources, one of them would be a conspiracy to provide and conceal material support to a terrorist organization, and then another to conspire to damage and destroy buildings used in interstate and foreign commerce.

I am not sure if those are all of the charges, but those will definitely be included. And, again, we expect to hear more in just a little bit -- Daryn.

KAGAN: They've been in custody, Kelli. What's different now is they're going to be charged here in the U.S. as well, is what learning is the news of the day.

ARENA: That's right.

KAGAN: All right. We'll get back to you as we do learn more. Thank you.

ARENA: You got it.

KAGAN: Other news today, the commander in chief will address soldiers at Fort Hood, Texas. We expect the president to speak in about 10 or 15 minutes. The topic, Iraq, the war on terror. We also expect a bit of a pep talk.

A live coverage of the president's speech is just ahead. First, though, let's get a preview from our Dana Bash, who is at Fort Hood this morning.

Dana, good morning.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

And, you know, Fort Hood is the largest active duty military base, and it's one that President Bush visits quite often because it's just a short helicopter ride from his ranch in Crawford. That is a helicopter ride the president is making this morning. And he's going to be speaking to 25,000 soldiers, almost all of whom served in Iraq, many of whom have just returned in -- returned in the past couple of weeks.

And you can see behind me, there -- it's already quite a scene. A sea of soldiers waiting for Mr. Bush, for their commander in chief to come and, as you said, give them a pep talk.

We were talking to some of them here from the 4th Infantry Division. They started walking from the other side of this large base at 3:30 in the morning to get here in time to wait to hear the president.

And Daryn, the White House does say that the main thrust of this will be to thank the troops, but also to mark the anniversary of the fall of Baghdad. This is a speech that President Bush had planned to give last Friday, but he has to postpone it because, of course, he went to Rome for the funeral of the pope. But Mr. Bush is going to thank the troops for their service, and also talk up what he will call the political success, even progress in Iraq.

But Daryn, the president will do what he tends to do when he visits military bases, and that is also to meet with some of the families of the fallen soldiers. Fort Hood lost 146 soldiers in Iraq. So Mr. Bush will be meeting with some of their families -- Daryn.

KAGAN: Dana Bash. Dana, thank you.

We'll go back to Fort Hood, Texas. We'll be back there live about 15 minutes from now when the president makes his remarks.

Data broker LexisNexis revealed today a security breach at the company is even bigger, like 10 times bigger than first believed. The firm now says 310,000 Americans may have had Social Security and driver's license numbers stolen. That's 10 times the original estimate.

The firm's parent company says its databases have been breached 59 times with stolen passwords. LexisNexis is notifying consumers if they are possible identify theft victims. So far, no one has reported any trouble.

Tonight on CNN's "NEWSNIGHT," Aaron Brown takes a look at cyber security, how to protect yourself from identity theft, at 10:00 p.m. Eastern, 7:00 p.m. in the West.

A man who caused a security scare on Capitol Hill will likely be deported soon. Police tackled the man after he stood passively outside the Capitol with a pair of suitcases for more than an hour. X-rays showed suspicious items in one bag, but after police blew it up, they found a CD player and batteries.

The man said he wanted to speak with President Bush. Police say he arrived in the U.S. from Australia, where he had obtained citizenship last summer.

A hearing is under way this hour on Capitol Hill on the nomination of John Negroponte -- there he is -- to be the first ever director of national intelligence. The new position was created in response to intelligence failures leading up to the September 11 terrorist attacks. And today's hearing follows a scathing report last month that says U.S. intelligence on Iraq was, "dead wrong."

An incident involving a Dutch KLM airliner has exposed a hole in USA homeland security. Authorities, you might remember, refused to let the play fly into U.S. airspace after hearing that two passengers were on the no-fly list of suspected terrorists. The Amsterdam-to- Mexico City flight returned to the Netherlands. Under current policy, though, international flights to and from the U.S. are required to check the no-fly lists, but flights traveling over the country without landing are not.

CNN "Security Watch" keeps you up to date on your safety. Stay tuned day and night for the most reliable news about your security.

U.S. troops and members of the new Iraqi government are getting support today from Defense Secretary Donald Rumsfeld.

Let's go live to Baghdad and CNN's Aneesh Raman for more on Rumsfeld unannounced visit to Iraq -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Daryn, good morning.

It is his ninth visit to Iraq since the war began, his second this year. And today, Donald Rumsfeld arrived with a twofold mission, to talk politics and to talk security.

Now, on the former, he met with leaders of Iraq's transitional government, Prime Minister Designate Ibrahim al-Jaafari, and President Jalal Talabani. In those meetings, he voiced some of the strongest rhetoric we've heard from this administration, pushing this government to finalize its formation.

One vote remains on the prime minister and his cabinet for the transitional government to take over authority of Iraq. Rumsfeld also said that corruption should be kept out of Iraqi governance and that diversity should be kept in Iraqi governance in terms of the ministerial positions.

Now, obviously, security another major issue for the secretary of defense. He met with top American commanders on the ground. Among all the items they discussed is also any potential troop reduction in the coming year, something that's been talked about back home preceding this trip.

Now, key to all of that, Daryn, will be the ability of Iraqi forces to start taking control of the situation here on the ground. This morning, the secretary of defense spoke to that need.

(BEGIN VIDEO CLIP) DONALD RUMSFELD, DEFENSE SECRETARY: The goal of the United States and the coalition is to work with the Iraqi security forces to help to build them, increase their size, increase their -- improve their equipment, and increase their capability in command and control. And increasingly, transfer responsibility to the Iraqi security forces.

(END VIDEO CLIP)

RAMAN: Now, Daryn, there are about 140,000 Americans here in Iraq. When some of them could be able to leave also is hugely dependent on the state of Iraq's insurgency, something that's morphed in recent months to less frequent but much more sophisticated attacks. The fact that Rumsfeld -- this his ninth visit -- was also unannounced and a surprise, gives you a sense of how things remain volatile here on the ground -- Daryn.

KAGAN: Aneesh Raman live from Baghdad. Thank you.

A witness to history coming up. What was it like to cover Pope John Paul II's death and funeral, also his life? I'll have a chance to speak with CNN correspondent Alessio Vinci.

And we're just a few minute's away from President Bush's address to the troops at Fort Hood. We'll bring it to you live when it happens.

(COMMERCIAL BREAK)

KAGAN: Let's take you live now to Fort Hood, Texas. President Bush getting ready to address the troops there. Fort Hood is an Army base that has contributed thousands of troops to the war in Iraq

Let's listen.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all. Thank you all for the warm welcome.

It wasn't all that long ago that I brought my family over to go to church Easter Sunday here at Fort Hood. I've been looking forward to coming back and giving you a proper Army greeting.

Hooah!

CROWD: Hooah!

BUSH: It's an honor to be with the courageous men and women of the Phantom Corps. The soldiers and families of Fort Hood have contributed mightily to our efforts in the war on terror. Many of you have recently returned from Iraq.

CROWD: Hooah!

BUSH: Welcome home. And thank you for a job well done.

CROWD: Hooah! BUSH: Others are preparing to head out this fall.

CROWD: Hooah!

BUSH: Some for a second tour of duty.

CROWD: Hooah!

BUSH: Whether you're coming or going, you're making an enormous difference for the security of our nation and for the peace of the world. I want to thank you for defending your fellow citizens. I want to thank you for extending liberty to millions. And I want to thank you for making America proud.

CROWD: Hooah!

BUSH: I especially want to thank the military families who are here today. I want to thank you for your sacrifices in the war on terror.

It isn't easy being the one left behind when a loved one goes to war. You have a wonderful community here at Fort Hood. I thank you for the support you have given to each other.

By loving and supporting a soldier, you are also serving our nation. Americans are grateful for your sacrifice and your service, and so is your commander in chief.

CROWD: Hooah!

BUSH: I want to thank Lieutenant General Tom Metz and his wife, Pam. I want to thank Command Sergeant Major Joe Gainey and his lovely wife.

I want to thank all the officers and soldiers of this fantastic base.

I appreciate our fine governor from the state of Texas, Governor Rick Perry, for joining us today.

I want to thank Congressman John Carter and Congressman Chet Edwards for joining us today. I'm looking forward to giving them a ride back to Washington on Air Force One. I suspect they're looking forward to the ride back.

(LAUGHTER)

I want to thank Major General Pete Corelli (ph) for being with us today, and his wife, Beth (ph); Major General JD Thurman and his wife, Dee...

(CHEERING)

... Command Sergeant Major Tom McAtree (ph) and all the soldiers, airmen, military families, veterans, friends of Fort Hood and the three corps (ph). This weekend we marked the two-year anniversary of the liberation of Baghdad. Coalition forces crossed more than 350 miles of desert to get there, pushing through dust storms and death squads. They reached the Iraqi capital in 21 days, and that achievement will be studied for generations as the fastest armored advance in military history.

CROWD: Hooah!

BUSH: The coalition assault was rapid, and it wasn't easy. The enemy hid in schools and in hospitals. They used civilians as human shields. Yet our troops persevered.

We protected civilian lives while destroying the Republican Guard's Medina Division, pushing through the Karbala gap, capturing Saddam International Airport. And on April 9, we liberated the Iraqi capital.

CROWD: Hooah!

BUSH: For millions of Iraqis and Americans, it is a day they will never forget. The toppling of Saddam Hussein's statue in Baghdad will be recorded alongside the fall of the Berlin Wall as one ever the great moments in the history of liberty. And eight months later, soldiers of the Ivy Division...

CROWD: Hooah!

BUSH: ... brought the real Saddam Hussein to justice.

When Iron Horse soldiers left for Iraq, Saddam Hussein was a brutal dictator sitting in a palace. And by the time you came home, he was sitting in a prison cell.

CROWD: Hooah!

BUSH: When it came time to drive the terrorists and insurgents from Falluja, soldiers of the 1st Cavalry Division spearheaded the assault.

CROWD: Hooah!

BUSH: The first team was first in Falluja. And when the dust settled, what you found there reminds us why we are at war -- blood- stained torture chambers used by terrorists to execute hostages, you found videos of beheadings and brutal terrorist attacks. You found over 600 improvised explosive devices, including an ice cream truck that had been loaded with bomb-making materials for a terrorist attack.

The men and women of the Phantom Corps know why we are in Iraq. As one first team soldier, Lieutenant Mike Irwin (ph) put it, "If we can start to change the most powerful country in the Middle East, the others will follow. And Americans 20 years down the road won't have to deal like a day like September 11, 2001.

CROWD: Hooah! BUSH: The terrorists have made Iraq a central front in the war on terror. Because of your service, because of your sacrifice, we are defeating them there where they live so we do not have to face them where we live.

CROWD: Hooah!

BUSH: Because of you, the people of Iraq no longer live in fear of being executed and left in mass graves. Because of you, freedom is taking root in Iraq. Our success in Iraq will make America safer for us and for future generations.

In my liberation message to the Iraqi people, I made them a solemn promise... "The government of Iraq and the future of your country will soon belong to you." I went on to say, "We will help you build a peaceful and representative government that protects the rights of all citizens. And then our military forces will leave."

From the beginning, our goal in Iraq has been to promote Iraqi independence by helping the Iraqi people establish a free somebody that can sustain itself, rule itself and defend itself. And in the last two years, Iraqis have made enormous progress toward that goal.

Iraqis have laid the foundations of a free society, with hundreds of independent newspapers and dozens of political parties and associations and schools that teach Iraqi children how to read and write, instead of the propaganda of Saddam Hussein. Iraqis have laid the foundation of a free economy, with a new currency and independent central bank, new laws to encourage foreign investment and thousands of small businesses established since liberation.

The troops from Fort Hood have done their part. In Baghdad, soldiers of the 1st Cavalry Division launched Operation Adam Smith. And the new generation of Iraqi entrepreneurs you helped nurture will create jobs and opportunity for millions of their fellow citizens.

Iraqis have laid the foundation for a society built on the rule of law. Today, courts are functioning across Iraq, and hundreds of independent Iraqi judges have been trained in Bahrain and Jordan and Czech Republic and Britain and Italy. An Iraqi special tribunal was established that will try senior leadership, including Saddam Hussein. He will get the trial that he did not afford his fellow citizens when he was in power.

Slowly but surely, the land that gave civilization the first written code of law is now restoring the rule of law and setting an example for people across the Middle East. Iraqis have laid a solid foundation for democratic self-government.

The world watched in awe as the Iraqi people defied the car bombers and assassins to cast their votes in the country's first free and democratic elections in decades. It took courage, the kind of courage displayed by 29-year-old Iraqi policeman named Abdul Amir.

On election day, Amir noticed a suspicious man walking towards a line of voters at a Baghdad polling station. With complete disregard for his own safety, he threw his arms around the man and dragged him into a nearby intersection, where the man detonated the belt of explosives that was wrapped around his body.

Amir took the brunt of the blast, giving his own life to save scores of innocent civilians. He is a hero of a free Iraq, and the world honors his valor and his sacrifice.

CROWD: Hooah!

BUSH: Because of brave Iraqis like Abdul Amir, today the free nation of Iraq has elected a transitional assembly, a president and two deputy presidents, leaders who answer to the people instead of the other way around.

I've spoken with the new leaders of Iraq, President Talabani, as well as Speaker -- Assembly Speaker al-Hassani. I congratulated them on their achievement. I told them that I look forward to working with the new government that will soon be established. I assured them that the United States will continue to stand with the Iraqi people as they take control of their destiny and assume the blessings of self-government.

There is a lot of hard work ahead. The Iraqi people face brutal and determined enemies. But Iraqis are also determined, and they have the will to defeat the insurgency.

The soldiers and police of a free Iraq learned on election day they can face down the insurgents. And they learned they can prevail.

The Iraqi people now have confidence that the soldiers and police of a free Iraq have the courage and resolve to defend them. Iraqi security forces are fighting bravely for the future of their country. And in the last six months alone, more than 800 have given their lives in the struggle.

The soldiers of Fort Hood have seen their courage in action. Sergeant 1st Class Troy Hawkins recently put it, "The Iraqis will stand and fight. I've seen guys with grenade fragments in them, bleeding, pulling people off the street and getting kids out of the way. Then they'll fight the enemy. They're determined to make this work. And the United States is determined to help the Iraqis succeed."

As Iraq's new government assumes increasing responsibility for the stability of their country, security operations are entering a new phase. Iraq security forces are becoming more self-reliant and taking on greater responsibilities, and that means that America and its coalition partners are increasingly playing more of a supporting role.

Today, more than 150,000 Iraqi security forces have been trained and equipped, and for the first time the Iraqi army, police and other security forces now outnumber the U.S. forces in Iraq. Like free people everywhere, Iraqis wand to be defended and lead by their own countrymen.

We will help them achieve this objective so Iraqis can secure their own nation. And then our troops will come home with the honor they have earned.

CROWD: Hooah!

BUSH: The Iraqi people know the sacrifices you are making. They're grateful to you. They're grateful to your families.

One Iraqi army colonel put it this way: "These U.S. soldiers leave their wives and kids to come here and give us freedom. We have to thank them for doing that for us."

You are making possible the peace of Iraq, and you're making possible the security of free nations. Yours is noble work. It's important work. And I thank you for assuming your duty.

As the Iraqi democracy succeeds, that success is sending a message from Beirut to Tehran that freedom can be the future ever every nation. The establishment of a free Iraq at the heart of the Middle East will be a crushing defeat to the forces of tyranny and terror, and a watershed event in the global democratic revolution.

In the last two years, you have accomplished much. Yet your work isn't over.

Freedom still faces dangerous adversaries. Terrorists still want to attack our people. But they're losing.

Terrorists are losing their struggle because they're under constant pressure from our armed forces. And they will remain under constant pressure from our armed forces.

CROWD: Hooah!

BUSH: And they are losing this struggle because they are on the wrong side of history. Across the broader Middle East, the tide of freedom is surging. People of Afghanistan have embraced free government after suffering under one of the most backward tyrannies on Earth.

The people of the Palestinian territories cast their ballots against violence and corruption of the past. The people of Lebanon are rising up to demand their freedom and independence.

Saudi Arabia has held its first municipal elections in decades. Egypt has taken its first steps on the path to democratic reform.

A critical mass of events is taking that region in a hopeful new direction. And as freedom spreads in the Middle East and beyond, the American people will be safer, and the free world more secure.

You have fought the battles in the war on terror, and you have served the cause of freedom. And you can be proud of all that you have achieved.

This time of brave achievement is also a time of sacrifice. Many of our soldiers have returned from war with grave wounds that they will carry with them the rest of their lives. And America will fulfill its duty by providing them the best medical care possible.

Still, others have given their lives in this struggle. Your friends, your comrades, we honor their memory. We lift them up in prayer. Their sacrifice will always be remembered by a grateful nation.

We can live as free people, because men and women like you have stepped forward, and have volunteered to serve. I came here today to thank you in person for your courageous choice of service. You're making America proud, you're making America free, and you're making the world more peaceful. I want to thank you for all you've done for our great nation.

May God bless you and your families, and may God continue to bless this great land of liberty, the United States of America. Thank you, all.

(APPLAUSE)

KAGAN: We've been listening to President Bush as he speaks to soldiers at Fort Hood in Texas. This is an Army base that has contributed thousands of troops to the war in Iraq. President Bush giving a pep talk to these soldiers, on the second anniversary of the U.S.-led invasion in Iraq, stressing a lot of what happened in Iraq over the last two years, and many of the developments of democracy.

Making mention when the troops might come home, but not giving an exact date, saying only when the job is done.

The president will be meeting with 30 family members who lost loved ones in Iraq later today. And then he heads back to Washington D.C.

More on the president's travels and what he has to say ahead. Right now, we're going to take a break.

(COMMERCIAL BREAK)

KAGAN: We're about five minutes past the half hour. I'm Daryn Kagan.

Here's what's happening right now in the news. The Justice Department is preparing to unseal indictments against three terror suspects. The men are accused of casing financial buildings in New York, New Jersey and Washington for possible attacks. All three have been in custody in Great Britain since last year.

We are, we want to let you know, standing by for a news conference with New York City police commissioner Ray Kelly with more on this story.

Bob and Mary Schindler are taking part today in a public memorial mass for their daughter, Terri Schiavo. Schiavo died almost two weeks after her feeding tube was pulled. The brain-damaged woman's parents fought her husband in the courts to try to keep her alive.

The FAA wants to know why a coned-shaped engine part fell off of a Northwest Airlines plane. The 200-pound object landed about a 100 yards from a house in Minnesota. The plane arrived safely in Hawaii. The crew never realized what had happened.

And students went back to class at Minnesota's Red Lake High School today. Three weeks ago, a classmate opened fire killing seven people before taking his own life.

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

Now to Iraq. Baghdad's so-called Green Zone is a heavily protected complex where many country's leaders work. But outside the Green Zone, the threat of danger from insurgents (INAUDIBLE) foreigners.

CNN senior international correspondent Nic Robertson went along with a team of American contractors on a very dangerous mission, just doing their daily job.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Had his windows open...

NIC ROBERTSON, CNN CORRESPONDENT: The last moments of safety before leaving the green zone.

UNIDENTIFIED MALE: Um, if we do encounter any problems or anything on the way, come under attack or something like that, we're going to stay in the vehicle.

ROBERTSON: Engineer John Crechemer (ph) is on his way to inspect a U.S.-funded power plant.

UNIDENTIFIED MALE: I haven't physically witnessed any explosions or attacks, but I keep thinking every time I go out it will be the time I'll see something or perhaps something will happen to us.

ROBERTSON: Also in the armored car, his colleague Rick Whitaker. Both men know this journey could cost their lives. But they have to make it. They have to see the $200 million project they're supervising.

RICK WHITAKER, USAID SENIOR TEAM LEADER: Anybody who wants to kill an American knows that they have the best chance outside the green zone.

ROBERTSON: How do you feel about that?

WHITAKER: I wish it weren't true. But I know it is true. And it is just one more reason that we have to restrict our travel.

ROBERTSON: As they make the dangerous run, two surveillance helicopters buzz overhead. Even more security than their usual weekly dashes through the city. With roadside, suicide and car bombs a growing threat, just sitting in traffic is stressful.

WHITAKER: We've all been in meetings where people started yelling at each other and get very intense. And I think that's a reflection of kind of constant fear people are living under, that your emotions are much closer to the surface.

ROBERTSON: But intense security takes more than a human toll. It eats into productivity.

UNIDENTIFIED MALE: The security costs for our contractors are escalating. And since the issuance of the contracts, costs have gone up. And the contractors are asking for relief from the costs.

ROBERTSON: No incidents on the way to the site.

Even inside the compound, security remains tight. Between them Crechemar and Whitaker have more than 40 years power-generating experience. But no experience prepared them for this.

UNIDENTIFIED MALE: I had a truckload of cable that was due to be delivered last week, and the convoy was attacked and one of the trucks was destroyed. And we lost four reels of very important cable.

What's this foundation for? Is this the control room?

UNIDENTIFIED MALE: No, this is part of the...

ROBERTSON: This new power plant is paid for by U.S. taxpayers. Crechemar and Whitaker are on their first inspection for several months.

UNIDENTIFIED MALE: We are making progress, but it's amazing to me still when I come out here and see how we're working in this environment, bringing the material in, getting it done.

ROBERTSON: Almost anywhere but Iraq, this plant would be built in a year. Here, it will take at least six months longer.

WHITAKER: The most recent high moment was actually getting the turbine generators in here, coming out of Jordan, because transport on the roads today is iffy. And these were such big targets.

ROBERTSON: Despite the security setbacks, plant officials expect to have this and several other power-generating plants currently being built, on line by the end of the summer, helping supply another one million Iraqi homes with electricity.

The inspection over, time to leave. Back into the armored car. Out on to the streets. The dash back to the green zone. So why would two engineers who could work anywhere, put themselves through this?

WHITAKER: To be here when history is going on, I think is a big attraction. Probably for all of us.

ROBERTSON: And put their families through it, too.

UNIDENTIFIED MALE: I call my wife once a day. But I always advise her on the days that I will be out of the green zone.

ROBERTSON: What does she say?

UNIDENTIFIED MALE: Be careful.

ROBERTSON: What do you say to that?

UNIDENTIFIED MALE: I'll do my best.

ROBERTSON: This time, best is good enough. Relief back in the green zone, minutes from that reassuring call home.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

KAGAN: President Bush's nominee for U.N. ambassador is facing another day on Capitol Hill. John Bolton's nomination is the focus of a second day of hearings. Our state department correspondent Andrea Koppel has been listening in and she joins us live with the latest. Andrea, hello.

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Hi, Daryn.

Well, what's going on today before Senate Foreign Relations Committee is that there is one witness, his name is Carl Ford, he is a former senior State Department official who actually was the assistant secretary in the Bureau of Intelligence and Research at the time when John Bolton is alleged to have used his influence, tried to use his influence, to skew intelligence, in particular on Cuba.

Now, these are all allegations that Mr. Bolton denied during sharp questions by senators yesterday, but Mr. Ford, in some rather colorful testimony, was under question by Senator Chris Dodd of Connecticut. Explaining really what is the crux of the issue here, whether or not Mr. Bolton tried to use his influence with senior members of the State Department to try to get some of Mr. Ford's analysts fired.

Here's a little bit of that questioning from Chris Dodd.

(BEGIN VIDEO CLIP)

CARL FORD, FMR. ASST. SECRETARY OF STATE: I can guarantee you, though, if Secretary Bolton had chosen to come to me or, in my absence, my principal deputy, Secretary Tom Finger (ph), I wouldn't be here today. He could have approached me in the same tone, and in the same attitude, shaking his finger, red in the face, high tone in his voice, and I wouldn't be here today.

If he had gone to Secretary Powell, or Secretary Armitage and complained loudly about the poor service that he was receiving from I & R and the terrible treatment -- that he'd been stabbed in the back by one of I & R's analysts, I wouldn't be here today.

(END VIDEO CLIP)

KOPPEL: During questioning yesterday, Bolton alleged that one of the State Department analysts whose agreement -- whose findings he disagreed with, had actually gone behind his back, sent e-mails, had complained in other ways about pressure that he said he was receiving from John Bolton, Bolton, again, denies vociferously, Daryn, that he tried to get any analyst fired.

We should point out that Democrats had wanted to get as many as seven witnesses to come before the committee today to answer questions, but the committee chair, Richard Lugar, didn't permit those other names to go through the mill and so the only person who's going to be testifying at this point is Carl Ford. A vote on the Bolton nomination is expected Thursday -- Daryn.

KAGAN: All right. We will check with you. Andrea Koppel. Thank you.

We're going to be right back with a look at today's top stories.

(COMMERCIAL BREAK)

KAGAN: Want to take you live now to New York City. Here is the police commissioner, Ray Kelly. Let's listen.

(JOINED IN PROGRESS)

UNIDENTIFIED MALE: ... through the criminal justice system. I'm joined, of course, by District Attorney Dan Donovan (ph) from Staten Island; our chief of department, Joe Espisito (ph); a chief who organized crime control, Doug Ziegler (ph); a chief of narcotics, Chief Anthony Izzo (ph); our captain Thomas O'Connell (ph) of Staten Island Narcotics; and Thomas Kratz (ph), who's the bureau chief of New York State Division of Parole. And obviously, other members of Staten Island Narcotics.

On Staten Island, as in the rest of the city, we continue our focus on the part of the criminal element that creates a disproportionate number of our problems, and that is drug dealers. The police department has no tolerance for the illegal drug trade.

The apprehension of a particularly nefarious group of drug dealers brings us here today. A band of criminals responsible for cocaine dealing and a string of violent incidents has been arrested. Their persistent and unwielding willingness to break the laws has caught up with them, and thanks to the work of officers assigned to Staten Island Narcotics, Patrol Bureau Staten Island and the Staten Island...

KAGAN: All right, well, a bit of a change there. We actually expected to hear the police commissioner talking about this indictment that we learned about today of three who are already in British custody in connection with the surveillance that was discovered last year, the surveillance of financial targets in New York and New Jersey. Three men already in British custody. We're now learning the will be indicted here in the U.S., as well. We'll get more on that story from Kelli Arena a little bit later. Right now, our break and much more news ahead. (COMMERCIAL BREAK)

KAGAN: It is Wolf time. Well, 10 minutes away from Wolf time. Let's find out what's coming up at the top of the with "NEWS FROM CNN." Hi, Wolf.

WOLF BLITZER, CNN ANCHOR: Is that like Miller time, Daryn, Wolf time, is that what you're suggesting?

KAGAN: It's better, so much better.

BLITZER: All right, we have a busy hour coming up at the top of the hour on NEWS FROM CNN, a story that continues to unfold this hour. Three men in British custody right now. They're charged with the surveillance of financial targets in the United States. Our justice correspondent Kelli Arena is working the story. She'll have details in our security watch.

Also, consumers beware. Crooks may have stolen the personal information of more than 300,000 people. Virtually everything there is something critically important to all of us, Social Security numbers, addresses, potentially compromised. Daryn, at the top of the hour, we're going to tell our viewers how they can protect themselves against identify theft and fraud.

Those stories, much more coming up on NEWS FROM CNN.

In the meantime, Daryn, back to you. It's still Daryn time.

KAGAN: Daryn time. Very important information. We'll be looking forward to that on Wolf time.

Wolf, thank you for that.

The Vatican is preparing to open the grottos beneath St. Peters. Starting tomorrow, the public can view the pope's tomb. At this hour in the Vatican, another mass honoring the life and papacy of John Paul II. On Monday, the College of Cardinals opened its conclave to choose the next pope.

Despite a vow of silence and secrecy, one cardinal is predicting quick results. He's quoted as saying, "We'll have a new pope in a couple of days, maximum three."

Our Alessio Vinci here in Atlanta today after covering the pope's funeral, also much of his life as well.

And so good to have you here at our world headquarters.

Big, big, big event. You've covered a lot of big stories. How did this one touch you?

ALESSIO VINCI, CNN CORRESPONDENT: Well, it touched me in many ways. One perhaps that, you know, if you compare it to wars and revolutions that I've done in the past, you know, it's dangerous of course, so your mind goes to protecting yourself first. And everything happens so fast. You know, you always tell the news, and then something else happens, and you've got to put it up.

With this funeral, and with this death, the passing of John Paul II, you had more time perhaps during the event, to actually reflect about what was happening and the moment -- long pauses, the masses very long, very beautiful to follow, and you know, we (INAUDIBLE) never took center stage during those masses, so give you a good time to talk about it and to think about it, and then eventually participate more into allowing viewers to see what was happening.

The other of course was to how to decide which was used when the pope died. I didn't want to so blunt as saying the pope has died. I wanted to find I softer way. All this put together it made it a very important story, I think.

KAGAN: We're about to ship you back to Rome pretty soon. The conclave beginning Monday. What will you be looking for during that time. Are you getting that same indication that a new pope will be selected so quickly?

VINCI: Yes, it used to be that...

KAGAN: It could take years.

VINCI: First of all, the conclave -- well, they have, in the past. But this past century the longest conclave I think was five days, something like that. So I think we do expect the pope in three or four days. This time around the cardinals who will be voting will not be locked into the Apostolic Palace, sleeping on cots. They will have a hotel, so they'll be more comfortable. So perhaps some people have said that the conclave could last longer, but at the same time, I think the cardinals want to make sure that this message that was send out is that the pope is a canon of all the cardinals, you know, there's no division in there, and therefore they want to make sure that the voting goes fast, because they want to send a message that they actually agree on a candidate, as opposed to, you know, fighting over different candidates for a long period of time.

KAGAN: And carry the unity forward of what we've seen so far.

Alessio, thank you for stopping by. Safe travels back to Rome, and we'll look for you next week in our coverage of the conclave.

Alessio Vinci.

We're going to take a break. I'm back right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

KAGAN: And a lot of breaking and developing news today. So we are going to end on a break. But stay with CNN, Wolf time. Wolf Blitzer is up at the top the hour. I'll see you tomorrow morning.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired April 12, 2005 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: We like to start with a look at what's happening right "Now in the News."
Authorities say there's been no sign of an ex-con suspected of killing two people and sexually assaulting a 15-year-old girl.

News of the manhunt for Stephen Stanko broke during this hour yesterday. A lookout has been posted for a 1996 Mazda pickup with license tag 709 PYJ.

We're following a tense situation today in Germany. Police say a man is holding between four and seven children hostage at knifepoint. They say he took the children off a bus and forced them into a basement of a house. There's now word on what the man wants.

President Bush's nominee for U.N. ambassador faces another tough day on Capitol Hill. Day two of hearings on John Bolton's nomination are under way at this hour. Bolton has been grilled over the harsh criticism -- his harsh criticism of the U.N. Testimony today focuses on charges he tried to intimidate State Department officials.

The mother of Michael Jackson's accuser could take the stand as early as today. The pop star's child molestation trial will resume this hour. Yesterday, jurors heard from the mother of a boy Jackson was accused of molesting in 1993. She says Jackson pleaded with her to let her son share his bed.

Just a minute past 11:00 on the East Coast, just past 8:00 on the West. Good morning once again. From the CNN Center in Atlanta, I'm Daryn Kagan.

We're going to begin the hour with a CNN "Security Watch." The Justice Department is expected to announce indictments against three terror suspects today. Those men are accused of scouting U.S. financial buildings for possible attacks.

Our Justice correspondent Kelli Arena joins me in Washington this morning. Details still coming up on this developing story.

Kelli, good morning.

KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT: That's right, Daryn, and they've been hard to come by because the indictments remain under seal. We're told that they should come out from under seal about 11:30. But we should get some official comment probably from New York. And then we expect more official comment later on from DOJ here in Washington.

Just to backtrack a bit, you may remember, Daryn, back in August that we had a group of men that were arrested in Britain for allegedly surveiling several targets here in the U.S., financial targets, including the Citicorp building and Wall Street in New York, the Prudential building in New Jersey, and then the IMF and World Bank here in Washington.

Those three individuals, those men who at the time government sources told us there was evidence that they personally conducted that surveillance, are now going to be indicted here in the United States. One of them, we are told by several sources, is Diron Berat (ph). You'd know him or be more familiar with him as Issa al-Hindi. He is described as a pretty high-level al Qaeda operative.

Again, these three men have been in custody since August in Britain. The are facing terror-related charges there. These are U.S. indictments. And I'm also told by a source that after they go through their prosecution and proceedings in Britain, that the U.S. may ask for extradition back here to the United States.

I was able, Daryn, to wrangle a few more details on the charges that they'll be facing. And according to sources, one of them would be a conspiracy to provide and conceal material support to a terrorist organization, and then another to conspire to damage and destroy buildings used in interstate and foreign commerce.

I am not sure if those are all of the charges, but those will definitely be included. And, again, we expect to hear more in just a little bit -- Daryn.

KAGAN: They've been in custody, Kelli. What's different now is they're going to be charged here in the U.S. as well, is what learning is the news of the day.

ARENA: That's right.

KAGAN: All right. We'll get back to you as we do learn more. Thank you.

ARENA: You got it.

KAGAN: Other news today, the commander in chief will address soldiers at Fort Hood, Texas. We expect the president to speak in about 10 or 15 minutes. The topic, Iraq, the war on terror. We also expect a bit of a pep talk.

A live coverage of the president's speech is just ahead. First, though, let's get a preview from our Dana Bash, who is at Fort Hood this morning.

Dana, good morning.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

And, you know, Fort Hood is the largest active duty military base, and it's one that President Bush visits quite often because it's just a short helicopter ride from his ranch in Crawford. That is a helicopter ride the president is making this morning. And he's going to be speaking to 25,000 soldiers, almost all of whom served in Iraq, many of whom have just returned in -- returned in the past couple of weeks.

And you can see behind me, there -- it's already quite a scene. A sea of soldiers waiting for Mr. Bush, for their commander in chief to come and, as you said, give them a pep talk.

We were talking to some of them here from the 4th Infantry Division. They started walking from the other side of this large base at 3:30 in the morning to get here in time to wait to hear the president.

And Daryn, the White House does say that the main thrust of this will be to thank the troops, but also to mark the anniversary of the fall of Baghdad. This is a speech that President Bush had planned to give last Friday, but he has to postpone it because, of course, he went to Rome for the funeral of the pope. But Mr. Bush is going to thank the troops for their service, and also talk up what he will call the political success, even progress in Iraq.

But Daryn, the president will do what he tends to do when he visits military bases, and that is also to meet with some of the families of the fallen soldiers. Fort Hood lost 146 soldiers in Iraq. So Mr. Bush will be meeting with some of their families -- Daryn.

KAGAN: Dana Bash. Dana, thank you.

We'll go back to Fort Hood, Texas. We'll be back there live about 15 minutes from now when the president makes his remarks.

Data broker LexisNexis revealed today a security breach at the company is even bigger, like 10 times bigger than first believed. The firm now says 310,000 Americans may have had Social Security and driver's license numbers stolen. That's 10 times the original estimate.

The firm's parent company says its databases have been breached 59 times with stolen passwords. LexisNexis is notifying consumers if they are possible identify theft victims. So far, no one has reported any trouble.

Tonight on CNN's "NEWSNIGHT," Aaron Brown takes a look at cyber security, how to protect yourself from identity theft, at 10:00 p.m. Eastern, 7:00 p.m. in the West.

A man who caused a security scare on Capitol Hill will likely be deported soon. Police tackled the man after he stood passively outside the Capitol with a pair of suitcases for more than an hour. X-rays showed suspicious items in one bag, but after police blew it up, they found a CD player and batteries.

The man said he wanted to speak with President Bush. Police say he arrived in the U.S. from Australia, where he had obtained citizenship last summer.

A hearing is under way this hour on Capitol Hill on the nomination of John Negroponte -- there he is -- to be the first ever director of national intelligence. The new position was created in response to intelligence failures leading up to the September 11 terrorist attacks. And today's hearing follows a scathing report last month that says U.S. intelligence on Iraq was, "dead wrong."

An incident involving a Dutch KLM airliner has exposed a hole in USA homeland security. Authorities, you might remember, refused to let the play fly into U.S. airspace after hearing that two passengers were on the no-fly list of suspected terrorists. The Amsterdam-to- Mexico City flight returned to the Netherlands. Under current policy, though, international flights to and from the U.S. are required to check the no-fly lists, but flights traveling over the country without landing are not.

CNN "Security Watch" keeps you up to date on your safety. Stay tuned day and night for the most reliable news about your security.

U.S. troops and members of the new Iraqi government are getting support today from Defense Secretary Donald Rumsfeld.

Let's go live to Baghdad and CNN's Aneesh Raman for more on Rumsfeld unannounced visit to Iraq -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Daryn, good morning.

It is his ninth visit to Iraq since the war began, his second this year. And today, Donald Rumsfeld arrived with a twofold mission, to talk politics and to talk security.

Now, on the former, he met with leaders of Iraq's transitional government, Prime Minister Designate Ibrahim al-Jaafari, and President Jalal Talabani. In those meetings, he voiced some of the strongest rhetoric we've heard from this administration, pushing this government to finalize its formation.

One vote remains on the prime minister and his cabinet for the transitional government to take over authority of Iraq. Rumsfeld also said that corruption should be kept out of Iraqi governance and that diversity should be kept in Iraqi governance in terms of the ministerial positions.

Now, obviously, security another major issue for the secretary of defense. He met with top American commanders on the ground. Among all the items they discussed is also any potential troop reduction in the coming year, something that's been talked about back home preceding this trip.

Now, key to all of that, Daryn, will be the ability of Iraqi forces to start taking control of the situation here on the ground. This morning, the secretary of defense spoke to that need.

(BEGIN VIDEO CLIP) DONALD RUMSFELD, DEFENSE SECRETARY: The goal of the United States and the coalition is to work with the Iraqi security forces to help to build them, increase their size, increase their -- improve their equipment, and increase their capability in command and control. And increasingly, transfer responsibility to the Iraqi security forces.

(END VIDEO CLIP)

RAMAN: Now, Daryn, there are about 140,000 Americans here in Iraq. When some of them could be able to leave also is hugely dependent on the state of Iraq's insurgency, something that's morphed in recent months to less frequent but much more sophisticated attacks. The fact that Rumsfeld -- this his ninth visit -- was also unannounced and a surprise, gives you a sense of how things remain volatile here on the ground -- Daryn.

KAGAN: Aneesh Raman live from Baghdad. Thank you.

A witness to history coming up. What was it like to cover Pope John Paul II's death and funeral, also his life? I'll have a chance to speak with CNN correspondent Alessio Vinci.

And we're just a few minute's away from President Bush's address to the troops at Fort Hood. We'll bring it to you live when it happens.

(COMMERCIAL BREAK)

KAGAN: Let's take you live now to Fort Hood, Texas. President Bush getting ready to address the troops there. Fort Hood is an Army base that has contributed thousands of troops to the war in Iraq

Let's listen.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Thank you all. Thank you all for the warm welcome.

It wasn't all that long ago that I brought my family over to go to church Easter Sunday here at Fort Hood. I've been looking forward to coming back and giving you a proper Army greeting.

Hooah!

CROWD: Hooah!

BUSH: It's an honor to be with the courageous men and women of the Phantom Corps. The soldiers and families of Fort Hood have contributed mightily to our efforts in the war on terror. Many of you have recently returned from Iraq.

CROWD: Hooah!

BUSH: Welcome home. And thank you for a job well done.

CROWD: Hooah! BUSH: Others are preparing to head out this fall.

CROWD: Hooah!

BUSH: Some for a second tour of duty.

CROWD: Hooah!

BUSH: Whether you're coming or going, you're making an enormous difference for the security of our nation and for the peace of the world. I want to thank you for defending your fellow citizens. I want to thank you for extending liberty to millions. And I want to thank you for making America proud.

CROWD: Hooah!

BUSH: I especially want to thank the military families who are here today. I want to thank you for your sacrifices in the war on terror.

It isn't easy being the one left behind when a loved one goes to war. You have a wonderful community here at Fort Hood. I thank you for the support you have given to each other.

By loving and supporting a soldier, you are also serving our nation. Americans are grateful for your sacrifice and your service, and so is your commander in chief.

CROWD: Hooah!

BUSH: I want to thank Lieutenant General Tom Metz and his wife, Pam. I want to thank Command Sergeant Major Joe Gainey and his lovely wife.

I want to thank all the officers and soldiers of this fantastic base.

I appreciate our fine governor from the state of Texas, Governor Rick Perry, for joining us today.

I want to thank Congressman John Carter and Congressman Chet Edwards for joining us today. I'm looking forward to giving them a ride back to Washington on Air Force One. I suspect they're looking forward to the ride back.

(LAUGHTER)

I want to thank Major General Pete Corelli (ph) for being with us today, and his wife, Beth (ph); Major General JD Thurman and his wife, Dee...

(CHEERING)

... Command Sergeant Major Tom McAtree (ph) and all the soldiers, airmen, military families, veterans, friends of Fort Hood and the three corps (ph). This weekend we marked the two-year anniversary of the liberation of Baghdad. Coalition forces crossed more than 350 miles of desert to get there, pushing through dust storms and death squads. They reached the Iraqi capital in 21 days, and that achievement will be studied for generations as the fastest armored advance in military history.

CROWD: Hooah!

BUSH: The coalition assault was rapid, and it wasn't easy. The enemy hid in schools and in hospitals. They used civilians as human shields. Yet our troops persevered.

We protected civilian lives while destroying the Republican Guard's Medina Division, pushing through the Karbala gap, capturing Saddam International Airport. And on April 9, we liberated the Iraqi capital.

CROWD: Hooah!

BUSH: For millions of Iraqis and Americans, it is a day they will never forget. The toppling of Saddam Hussein's statue in Baghdad will be recorded alongside the fall of the Berlin Wall as one ever the great moments in the history of liberty. And eight months later, soldiers of the Ivy Division...

CROWD: Hooah!

BUSH: ... brought the real Saddam Hussein to justice.

When Iron Horse soldiers left for Iraq, Saddam Hussein was a brutal dictator sitting in a palace. And by the time you came home, he was sitting in a prison cell.

CROWD: Hooah!

BUSH: When it came time to drive the terrorists and insurgents from Falluja, soldiers of the 1st Cavalry Division spearheaded the assault.

CROWD: Hooah!

BUSH: The first team was first in Falluja. And when the dust settled, what you found there reminds us why we are at war -- blood- stained torture chambers used by terrorists to execute hostages, you found videos of beheadings and brutal terrorist attacks. You found over 600 improvised explosive devices, including an ice cream truck that had been loaded with bomb-making materials for a terrorist attack.

The men and women of the Phantom Corps know why we are in Iraq. As one first team soldier, Lieutenant Mike Irwin (ph) put it, "If we can start to change the most powerful country in the Middle East, the others will follow. And Americans 20 years down the road won't have to deal like a day like September 11, 2001.

CROWD: Hooah! BUSH: The terrorists have made Iraq a central front in the war on terror. Because of your service, because of your sacrifice, we are defeating them there where they live so we do not have to face them where we live.

CROWD: Hooah!

BUSH: Because of you, the people of Iraq no longer live in fear of being executed and left in mass graves. Because of you, freedom is taking root in Iraq. Our success in Iraq will make America safer for us and for future generations.

In my liberation message to the Iraqi people, I made them a solemn promise... "The government of Iraq and the future of your country will soon belong to you." I went on to say, "We will help you build a peaceful and representative government that protects the rights of all citizens. And then our military forces will leave."

From the beginning, our goal in Iraq has been to promote Iraqi independence by helping the Iraqi people establish a free somebody that can sustain itself, rule itself and defend itself. And in the last two years, Iraqis have made enormous progress toward that goal.

Iraqis have laid the foundations of a free society, with hundreds of independent newspapers and dozens of political parties and associations and schools that teach Iraqi children how to read and write, instead of the propaganda of Saddam Hussein. Iraqis have laid the foundation of a free economy, with a new currency and independent central bank, new laws to encourage foreign investment and thousands of small businesses established since liberation.

The troops from Fort Hood have done their part. In Baghdad, soldiers of the 1st Cavalry Division launched Operation Adam Smith. And the new generation of Iraqi entrepreneurs you helped nurture will create jobs and opportunity for millions of their fellow citizens.

Iraqis have laid the foundation for a society built on the rule of law. Today, courts are functioning across Iraq, and hundreds of independent Iraqi judges have been trained in Bahrain and Jordan and Czech Republic and Britain and Italy. An Iraqi special tribunal was established that will try senior leadership, including Saddam Hussein. He will get the trial that he did not afford his fellow citizens when he was in power.

Slowly but surely, the land that gave civilization the first written code of law is now restoring the rule of law and setting an example for people across the Middle East. Iraqis have laid a solid foundation for democratic self-government.

The world watched in awe as the Iraqi people defied the car bombers and assassins to cast their votes in the country's first free and democratic elections in decades. It took courage, the kind of courage displayed by 29-year-old Iraqi policeman named Abdul Amir.

On election day, Amir noticed a suspicious man walking towards a line of voters at a Baghdad polling station. With complete disregard for his own safety, he threw his arms around the man and dragged him into a nearby intersection, where the man detonated the belt of explosives that was wrapped around his body.

Amir took the brunt of the blast, giving his own life to save scores of innocent civilians. He is a hero of a free Iraq, and the world honors his valor and his sacrifice.

CROWD: Hooah!

BUSH: Because of brave Iraqis like Abdul Amir, today the free nation of Iraq has elected a transitional assembly, a president and two deputy presidents, leaders who answer to the people instead of the other way around.

I've spoken with the new leaders of Iraq, President Talabani, as well as Speaker -- Assembly Speaker al-Hassani. I congratulated them on their achievement. I told them that I look forward to working with the new government that will soon be established. I assured them that the United States will continue to stand with the Iraqi people as they take control of their destiny and assume the blessings of self-government.

There is a lot of hard work ahead. The Iraqi people face brutal and determined enemies. But Iraqis are also determined, and they have the will to defeat the insurgency.

The soldiers and police of a free Iraq learned on election day they can face down the insurgents. And they learned they can prevail.

The Iraqi people now have confidence that the soldiers and police of a free Iraq have the courage and resolve to defend them. Iraqi security forces are fighting bravely for the future of their country. And in the last six months alone, more than 800 have given their lives in the struggle.

The soldiers of Fort Hood have seen their courage in action. Sergeant 1st Class Troy Hawkins recently put it, "The Iraqis will stand and fight. I've seen guys with grenade fragments in them, bleeding, pulling people off the street and getting kids out of the way. Then they'll fight the enemy. They're determined to make this work. And the United States is determined to help the Iraqis succeed."

As Iraq's new government assumes increasing responsibility for the stability of their country, security operations are entering a new phase. Iraq security forces are becoming more self-reliant and taking on greater responsibilities, and that means that America and its coalition partners are increasingly playing more of a supporting role.

Today, more than 150,000 Iraqi security forces have been trained and equipped, and for the first time the Iraqi army, police and other security forces now outnumber the U.S. forces in Iraq. Like free people everywhere, Iraqis wand to be defended and lead by their own countrymen.

We will help them achieve this objective so Iraqis can secure their own nation. And then our troops will come home with the honor they have earned.

CROWD: Hooah!

BUSH: The Iraqi people know the sacrifices you are making. They're grateful to you. They're grateful to your families.

One Iraqi army colonel put it this way: "These U.S. soldiers leave their wives and kids to come here and give us freedom. We have to thank them for doing that for us."

You are making possible the peace of Iraq, and you're making possible the security of free nations. Yours is noble work. It's important work. And I thank you for assuming your duty.

As the Iraqi democracy succeeds, that success is sending a message from Beirut to Tehran that freedom can be the future ever every nation. The establishment of a free Iraq at the heart of the Middle East will be a crushing defeat to the forces of tyranny and terror, and a watershed event in the global democratic revolution.

In the last two years, you have accomplished much. Yet your work isn't over.

Freedom still faces dangerous adversaries. Terrorists still want to attack our people. But they're losing.

Terrorists are losing their struggle because they're under constant pressure from our armed forces. And they will remain under constant pressure from our armed forces.

CROWD: Hooah!

BUSH: And they are losing this struggle because they are on the wrong side of history. Across the broader Middle East, the tide of freedom is surging. People of Afghanistan have embraced free government after suffering under one of the most backward tyrannies on Earth.

The people of the Palestinian territories cast their ballots against violence and corruption of the past. The people of Lebanon are rising up to demand their freedom and independence.

Saudi Arabia has held its first municipal elections in decades. Egypt has taken its first steps on the path to democratic reform.

A critical mass of events is taking that region in a hopeful new direction. And as freedom spreads in the Middle East and beyond, the American people will be safer, and the free world more secure.

You have fought the battles in the war on terror, and you have served the cause of freedom. And you can be proud of all that you have achieved.

This time of brave achievement is also a time of sacrifice. Many of our soldiers have returned from war with grave wounds that they will carry with them the rest of their lives. And America will fulfill its duty by providing them the best medical care possible.

Still, others have given their lives in this struggle. Your friends, your comrades, we honor their memory. We lift them up in prayer. Their sacrifice will always be remembered by a grateful nation.

We can live as free people, because men and women like you have stepped forward, and have volunteered to serve. I came here today to thank you in person for your courageous choice of service. You're making America proud, you're making America free, and you're making the world more peaceful. I want to thank you for all you've done for our great nation.

May God bless you and your families, and may God continue to bless this great land of liberty, the United States of America. Thank you, all.

(APPLAUSE)

KAGAN: We've been listening to President Bush as he speaks to soldiers at Fort Hood in Texas. This is an Army base that has contributed thousands of troops to the war in Iraq. President Bush giving a pep talk to these soldiers, on the second anniversary of the U.S.-led invasion in Iraq, stressing a lot of what happened in Iraq over the last two years, and many of the developments of democracy.

Making mention when the troops might come home, but not giving an exact date, saying only when the job is done.

The president will be meeting with 30 family members who lost loved ones in Iraq later today. And then he heads back to Washington D.C.

More on the president's travels and what he has to say ahead. Right now, we're going to take a break.

(COMMERCIAL BREAK)

KAGAN: We're about five minutes past the half hour. I'm Daryn Kagan.

Here's what's happening right now in the news. The Justice Department is preparing to unseal indictments against three terror suspects. The men are accused of casing financial buildings in New York, New Jersey and Washington for possible attacks. All three have been in custody in Great Britain since last year.

We are, we want to let you know, standing by for a news conference with New York City police commissioner Ray Kelly with more on this story.

Bob and Mary Schindler are taking part today in a public memorial mass for their daughter, Terri Schiavo. Schiavo died almost two weeks after her feeding tube was pulled. The brain-damaged woman's parents fought her husband in the courts to try to keep her alive.

The FAA wants to know why a coned-shaped engine part fell off of a Northwest Airlines plane. The 200-pound object landed about a 100 yards from a house in Minnesota. The plane arrived safely in Hawaii. The crew never realized what had happened.

And students went back to class at Minnesota's Red Lake High School today. Three weeks ago, a classmate opened fire killing seven people before taking his own life.

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

Now to Iraq. Baghdad's so-called Green Zone is a heavily protected complex where many country's leaders work. But outside the Green Zone, the threat of danger from insurgents (INAUDIBLE) foreigners.

CNN senior international correspondent Nic Robertson went along with a team of American contractors on a very dangerous mission, just doing their daily job.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Had his windows open...

NIC ROBERTSON, CNN CORRESPONDENT: The last moments of safety before leaving the green zone.

UNIDENTIFIED MALE: Um, if we do encounter any problems or anything on the way, come under attack or something like that, we're going to stay in the vehicle.

ROBERTSON: Engineer John Crechemer (ph) is on his way to inspect a U.S.-funded power plant.

UNIDENTIFIED MALE: I haven't physically witnessed any explosions or attacks, but I keep thinking every time I go out it will be the time I'll see something or perhaps something will happen to us.

ROBERTSON: Also in the armored car, his colleague Rick Whitaker. Both men know this journey could cost their lives. But they have to make it. They have to see the $200 million project they're supervising.

RICK WHITAKER, USAID SENIOR TEAM LEADER: Anybody who wants to kill an American knows that they have the best chance outside the green zone.

ROBERTSON: How do you feel about that?

WHITAKER: I wish it weren't true. But I know it is true. And it is just one more reason that we have to restrict our travel.

ROBERTSON: As they make the dangerous run, two surveillance helicopters buzz overhead. Even more security than their usual weekly dashes through the city. With roadside, suicide and car bombs a growing threat, just sitting in traffic is stressful.

WHITAKER: We've all been in meetings where people started yelling at each other and get very intense. And I think that's a reflection of kind of constant fear people are living under, that your emotions are much closer to the surface.

ROBERTSON: But intense security takes more than a human toll. It eats into productivity.

UNIDENTIFIED MALE: The security costs for our contractors are escalating. And since the issuance of the contracts, costs have gone up. And the contractors are asking for relief from the costs.

ROBERTSON: No incidents on the way to the site.

Even inside the compound, security remains tight. Between them Crechemar and Whitaker have more than 40 years power-generating experience. But no experience prepared them for this.

UNIDENTIFIED MALE: I had a truckload of cable that was due to be delivered last week, and the convoy was attacked and one of the trucks was destroyed. And we lost four reels of very important cable.

What's this foundation for? Is this the control room?

UNIDENTIFIED MALE: No, this is part of the...

ROBERTSON: This new power plant is paid for by U.S. taxpayers. Crechemar and Whitaker are on their first inspection for several months.

UNIDENTIFIED MALE: We are making progress, but it's amazing to me still when I come out here and see how we're working in this environment, bringing the material in, getting it done.

ROBERTSON: Almost anywhere but Iraq, this plant would be built in a year. Here, it will take at least six months longer.

WHITAKER: The most recent high moment was actually getting the turbine generators in here, coming out of Jordan, because transport on the roads today is iffy. And these were such big targets.

ROBERTSON: Despite the security setbacks, plant officials expect to have this and several other power-generating plants currently being built, on line by the end of the summer, helping supply another one million Iraqi homes with electricity.

The inspection over, time to leave. Back into the armored car. Out on to the streets. The dash back to the green zone. So why would two engineers who could work anywhere, put themselves through this?

WHITAKER: To be here when history is going on, I think is a big attraction. Probably for all of us.

ROBERTSON: And put their families through it, too.

UNIDENTIFIED MALE: I call my wife once a day. But I always advise her on the days that I will be out of the green zone.

ROBERTSON: What does she say?

UNIDENTIFIED MALE: Be careful.

ROBERTSON: What do you say to that?

UNIDENTIFIED MALE: I'll do my best.

ROBERTSON: This time, best is good enough. Relief back in the green zone, minutes from that reassuring call home.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

KAGAN: President Bush's nominee for U.N. ambassador is facing another day on Capitol Hill. John Bolton's nomination is the focus of a second day of hearings. Our state department correspondent Andrea Koppel has been listening in and she joins us live with the latest. Andrea, hello.

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Hi, Daryn.

Well, what's going on today before Senate Foreign Relations Committee is that there is one witness, his name is Carl Ford, he is a former senior State Department official who actually was the assistant secretary in the Bureau of Intelligence and Research at the time when John Bolton is alleged to have used his influence, tried to use his influence, to skew intelligence, in particular on Cuba.

Now, these are all allegations that Mr. Bolton denied during sharp questions by senators yesterday, but Mr. Ford, in some rather colorful testimony, was under question by Senator Chris Dodd of Connecticut. Explaining really what is the crux of the issue here, whether or not Mr. Bolton tried to use his influence with senior members of the State Department to try to get some of Mr. Ford's analysts fired.

Here's a little bit of that questioning from Chris Dodd.

(BEGIN VIDEO CLIP)

CARL FORD, FMR. ASST. SECRETARY OF STATE: I can guarantee you, though, if Secretary Bolton had chosen to come to me or, in my absence, my principal deputy, Secretary Tom Finger (ph), I wouldn't be here today. He could have approached me in the same tone, and in the same attitude, shaking his finger, red in the face, high tone in his voice, and I wouldn't be here today.

If he had gone to Secretary Powell, or Secretary Armitage and complained loudly about the poor service that he was receiving from I & R and the terrible treatment -- that he'd been stabbed in the back by one of I & R's analysts, I wouldn't be here today.

(END VIDEO CLIP)

KOPPEL: During questioning yesterday, Bolton alleged that one of the State Department analysts whose agreement -- whose findings he disagreed with, had actually gone behind his back, sent e-mails, had complained in other ways about pressure that he said he was receiving from John Bolton, Bolton, again, denies vociferously, Daryn, that he tried to get any analyst fired.

We should point out that Democrats had wanted to get as many as seven witnesses to come before the committee today to answer questions, but the committee chair, Richard Lugar, didn't permit those other names to go through the mill and so the only person who's going to be testifying at this point is Carl Ford. A vote on the Bolton nomination is expected Thursday -- Daryn.

KAGAN: All right. We will check with you. Andrea Koppel. Thank you.

We're going to be right back with a look at today's top stories.

(COMMERCIAL BREAK)

KAGAN: Want to take you live now to New York City. Here is the police commissioner, Ray Kelly. Let's listen.

(JOINED IN PROGRESS)

UNIDENTIFIED MALE: ... through the criminal justice system. I'm joined, of course, by District Attorney Dan Donovan (ph) from Staten Island; our chief of department, Joe Espisito (ph); a chief who organized crime control, Doug Ziegler (ph); a chief of narcotics, Chief Anthony Izzo (ph); our captain Thomas O'Connell (ph) of Staten Island Narcotics; and Thomas Kratz (ph), who's the bureau chief of New York State Division of Parole. And obviously, other members of Staten Island Narcotics.

On Staten Island, as in the rest of the city, we continue our focus on the part of the criminal element that creates a disproportionate number of our problems, and that is drug dealers. The police department has no tolerance for the illegal drug trade.

The apprehension of a particularly nefarious group of drug dealers brings us here today. A band of criminals responsible for cocaine dealing and a string of violent incidents has been arrested. Their persistent and unwielding willingness to break the laws has caught up with them, and thanks to the work of officers assigned to Staten Island Narcotics, Patrol Bureau Staten Island and the Staten Island...

KAGAN: All right, well, a bit of a change there. We actually expected to hear the police commissioner talking about this indictment that we learned about today of three who are already in British custody in connection with the surveillance that was discovered last year, the surveillance of financial targets in New York and New Jersey. Three men already in British custody. We're now learning the will be indicted here in the U.S., as well. We'll get more on that story from Kelli Arena a little bit later. Right now, our break and much more news ahead. (COMMERCIAL BREAK)

KAGAN: It is Wolf time. Well, 10 minutes away from Wolf time. Let's find out what's coming up at the top of the with "NEWS FROM CNN." Hi, Wolf.

WOLF BLITZER, CNN ANCHOR: Is that like Miller time, Daryn, Wolf time, is that what you're suggesting?

KAGAN: It's better, so much better.

BLITZER: All right, we have a busy hour coming up at the top of the hour on NEWS FROM CNN, a story that continues to unfold this hour. Three men in British custody right now. They're charged with the surveillance of financial targets in the United States. Our justice correspondent Kelli Arena is working the story. She'll have details in our security watch.

Also, consumers beware. Crooks may have stolen the personal information of more than 300,000 people. Virtually everything there is something critically important to all of us, Social Security numbers, addresses, potentially compromised. Daryn, at the top of the hour, we're going to tell our viewers how they can protect themselves against identify theft and fraud.

Those stories, much more coming up on NEWS FROM CNN.

In the meantime, Daryn, back to you. It's still Daryn time.

KAGAN: Daryn time. Very important information. We'll be looking forward to that on Wolf time.

Wolf, thank you for that.

The Vatican is preparing to open the grottos beneath St. Peters. Starting tomorrow, the public can view the pope's tomb. At this hour in the Vatican, another mass honoring the life and papacy of John Paul II. On Monday, the College of Cardinals opened its conclave to choose the next pope.

Despite a vow of silence and secrecy, one cardinal is predicting quick results. He's quoted as saying, "We'll have a new pope in a couple of days, maximum three."

Our Alessio Vinci here in Atlanta today after covering the pope's funeral, also much of his life as well.

And so good to have you here at our world headquarters.

Big, big, big event. You've covered a lot of big stories. How did this one touch you?

ALESSIO VINCI, CNN CORRESPONDENT: Well, it touched me in many ways. One perhaps that, you know, if you compare it to wars and revolutions that I've done in the past, you know, it's dangerous of course, so your mind goes to protecting yourself first. And everything happens so fast. You know, you always tell the news, and then something else happens, and you've got to put it up.

With this funeral, and with this death, the passing of John Paul II, you had more time perhaps during the event, to actually reflect about what was happening and the moment -- long pauses, the masses very long, very beautiful to follow, and you know, we (INAUDIBLE) never took center stage during those masses, so give you a good time to talk about it and to think about it, and then eventually participate more into allowing viewers to see what was happening.

The other of course was to how to decide which was used when the pope died. I didn't want to so blunt as saying the pope has died. I wanted to find I softer way. All this put together it made it a very important story, I think.

KAGAN: We're about to ship you back to Rome pretty soon. The conclave beginning Monday. What will you be looking for during that time. Are you getting that same indication that a new pope will be selected so quickly?

VINCI: Yes, it used to be that...

KAGAN: It could take years.

VINCI: First of all, the conclave -- well, they have, in the past. But this past century the longest conclave I think was five days, something like that. So I think we do expect the pope in three or four days. This time around the cardinals who will be voting will not be locked into the Apostolic Palace, sleeping on cots. They will have a hotel, so they'll be more comfortable. So perhaps some people have said that the conclave could last longer, but at the same time, I think the cardinals want to make sure that this message that was send out is that the pope is a canon of all the cardinals, you know, there's no division in there, and therefore they want to make sure that the voting goes fast, because they want to send a message that they actually agree on a candidate, as opposed to, you know, fighting over different candidates for a long period of time.

KAGAN: And carry the unity forward of what we've seen so far.

Alessio, thank you for stopping by. Safe travels back to Rome, and we'll look for you next week in our coverage of the conclave.

Alessio Vinci.

We're going to take a break. I'm back right after this.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

KAGAN: And a lot of breaking and developing news today. So we are going to end on a break. But stay with CNN, Wolf time. Wolf Blitzer is up at the top the hour. I'll see you tomorrow morning.

(COMMERCIAL BREAK)

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