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Zarqawi Possibly Wounded; Bush to Meet with Abbas

Aired May 26, 2005 - 08:00   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: A developing story out of Baghdad today. Government officials there say they have new information that Zarqawi, the most wanted man in Iraq, is wounded.
Also in Iraq today, the government announcing a huge crackdown on insurgents. Forty thousand troops will cordon off the capital city.

And in Washington, Palestinian leader Mahmoud Abbas meeting today with the president, a first in five years, and maybe a key step for peace, on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning.

Welcome back, everybody.

Lots of major announcements, in fact, coming out of Iraq in just the last couple of hours. Iraq's interior minister saying that he has received some credible information that terrorist Abu Musab al-Zarqawi is wounded.

HEMMER: Also, he says he's not even sure whether or not Zarqawi is alive or dead. Ryan Chilcote reporting from Baghdad on that in a moment, and everything else that's happening in Iraq.

We'll get to that.

But first, let's get to Jack right now -- good morning.

JACK CAFFERTY, CNN CORRESPONDENT: Thanks, Bill.

Coming up in "The Cafferty File," a study finds that obese women face bigger challenges than just losing weight.

Charges in a terror case could be dropped because the alleged terrorist was wearing handcuffs. Imagine that, an alleged terrorist in handcuffs. It's just mind-boggling.

And New York City makes it easier to answer the door when nature calls.

HEMMER: Only in Manhattan.

O'BRIEN: I can't wait for that.

Thank you, Jack.

Now to the new developments coming out of Iraq this morning. Five attacks in a period of only 70 minutes, killing eight people, wounding 11 this morning. The big news, though, coming from Iraqi government officials, beginning with new information on the most wanted terrorist, Abu Musab al-Zarqawi.

Let's get right to Ryan Chilcote.

He's live for us in Baghdad this morning -- Ryan, what's the update?

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Soledad.

Well, the Iraqi interior minister making this very startling and dramatic announcement that Abu Musab al-Zarqawi, the leader of al Qaeda in Iraq, is wounded. The interior minister said that he got this information about five days ago. He says he believes it is true. The only thing he says he doesn't know is the extent of Abu Musab al- Zarqawi's injuries.

Very interesting. We've seen rumors on the Internet, postings on the Internet to that effect, reportedly from al Qaeda in Iraq, saying that Zarqawi was wounded. But up until this announcement from the Iraqi interior minister this morning, all U.S. and Iraqi officials we spoke with said they simply don't know -- Soledad.

O'BRIEN: Well, Ryan, what do you make of this newly announced major offensive against the insurgents?

CHILCOTE: Well, the Iraqis are saying it will be unprecedented in its size. They're calling it Operation Thunder. They say it will begin next week. That would be Sunday here in Baghdad. They say that it will involve some 40,000 members of Iraqi security forces effectively fanning out throughout the city while at the same time sealing off the borders of this city, setting up 600 checkpoints. They say it's an aggressive offensive to try to stop the violence that has rocked the Iraqi capital and all of Iraq over the last month. Of course, as you know, more than 600 Iraqis have been killed since Iraq's most recent government was formed at the end of last month.

Meanwhile, we were speaking just yesterday, Soledad, about the U.S. military's most recent offensive, taking place out in Haditha, about 130 miles west of the Iraqi capital. That's called Operation New Market. It's now in its third day. The most recent update we're getting from the Marines is that those -- about 1,000 Marines are still in Haditha. They say that the operation is going well. They say they have killed some 10 insurgents there. They're also saying that about two Marines have been wounded so far -- Soledad.

O'BRIEN: Some very big news coming to us out of Iraq this morning.

Ryan, thanks for that update.

Let's get to some of the other headlines this morning with Carol Costello -- good morning again, Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning.

Good morning to all of you.

Now in the news, the U.S. Senate can vote as early as today on the nomination of John Bolton. He's President Bush's pick to be the next U.S. ambassador to the United Nations. Republican senators say they are confident Bolton will be approved, but some Democrats say they may want to delay the vote until the administration gives them access to some documents they've asked for weeks ago.

The House has approved a $491 billion military spending bill. The lawmakers dropped a measure that would have limited the role of women in combat, leaving the decisions up to the Pentagon. The Senate votes on its version of the defense bill next month.

The U.S. Embassy in Jakarta, Indonesia closing its doors today. American officials citing terror threats. Other U.S. facilities in the area also shut down. The closings come four days after thousands of Muslims in Indonesia protested a "Newsweek" report suggesting American interrogators desecrated the Koran. No word on when the buildings will reopen.

And a CNN "Security Watch" now. The U.S. may not be doing enough to keep weapons of mass destruction out of American ports. Two newly released congressional reports criticize efforts to keep cargo containers out of terrorists' reach. The Senate permanent subcommittee on investigations, which requested the reports, is set to discuss the findings in the next hour.

Stay tuned to CNN day and night for the most reliable news about your security.

Back to you.

HEMMER: All right, Carol, thank you.

President Bush today meets with the Palestinian leader for the first time since he has been in office. He will talk about the new Mideast peace process with the new Palestinian president, Mahmoud Abbas.

Andrea Koppel brings us an update now from the State Department.

(BEGIN VIDEO TAPE)

ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): When Mahmoud Abbas arrives at the White House, that picture will speak a thousand words. After more than four years of refusing to meet with the now deceased Yasser Arafat, President Bush is eager to welcome the newly elected Palestinian leader.

MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: I do think that there is an opportunity here, a window of opportunity, but it's not going to last very long. And so this meeting is truly important. CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: They will build a relationship that is one that is based on the good faith that only democratic leaders can bring.

KOPPEL: After Arafat's death in November and democratic Palestinian elections in January, the U.S. quickly renewed its push for peace. Secretary of State Rice traveled to the region in February to meet with both leaders. The U.S. has also appointed a U.S. general to help restructure Palestinian security services and tapped a former World Bank chief as special envoy to Gaza.

Israel's prime minister, too, has reached out to Abbas. In February, the two leaders announced a cease-fire. But months later, it's on shaky ground. Israel has only released about 500 of a promised 900 Palestinian prisoners, one of its few concessions.

Again this week, Sharon countered that Palestinian terrorism has not ended.

ARIEL SHARON, ISRAELI PRIME MINISTER: The smuggling of weapons and arms production continues. And there is no real prevention of terrorist actions.

KOPPEL: Militant groups like Hamas, which won big in recent municipal elections, still refuse to answer to Abbas. The next milestone on the horizon, Israel's expected withdrawal from Gaza, slated to begin in August. Palestinians say disengagement must be followed by the next stage in the U.S.-backed road map to peace.

NASIR AL-KIDWA, PALESTINIAN FOREIGN MINISTER: Gaza alone is not going to work. It's as simple as that. We'll be counting days until the next confrontation, the next intifada.

KOPPEL (on camera): Abbas will also ask President Bush to funnel $200 million in promised U.S. aid directly to the Palestinian Authority, helping to boost his credibility ahead of parliamentary elections this summer.

Andrea Koppel, CNN, at the State Department.

(END VIDEO TAPE)

HEMMER: Also, Abbas is encouraging the terrorist organization Hamas to participate in these elections. And stay tuned to CNN for live coverage of that news conference with President Bush and Mahmoud Abbas later today, at 11:25 a.m. Eastern time. That's 8:25 out on the West Coast -- Soledad.

O'BRIEN: The runaway bride may soon have to defend herself in court. Jennifer Wilbanks has now been charged with making a false statement and making a false police report, one a felony charge, the other a misdemeanor. She could get up to six years behind bars and spend $11,000 in fines.

Shirley Fanning-Lasseter is the mayor of Duluth, joining us this morning. Nice to see you, Mrs. Mayor.

Thanks for being with us.

SHIRLEY FANNING-LASSETER, DULUTH MAYOR: Thank you, Soledad, for having me.

O'BRIEN: Are you surprised that Jennifer Wilbanks was indicted?

FANNING-LASSETER: I'm a little surprised that she was indicted on both the counts, but I do have a tremendous amount of faith in our judicial system and I'm sure they did that for a reason. Hopefully, it will give them quite a bit of leverage to work with her and see that she can get the help that she needs.

O'BRIEN: Does that mean you'd like to see her spend some time in jail or you'd like to see her not spend any time in jail?

FANNING-LASSETER: Well, I don't think that's up to me. I'm not judge nor jury, and it's strictly up to the district attorney's office. We, as a city, have absolutely nothing to do with that. But I do have a lot of faith in them.

O'BRIEN: Yesterday, through her lawyer, Jennifer Wilbanks offered to reimburse the city some $13,000, I believe was the number, in overtime costs for the folks who spent their time looking for her.

Are you pleased with that and that number?

FANNING-LASSETER: Well, Soledad, it's the number that they wish to reimburse and it encompasses all of the overtime hours, as well as the out of town, out of pocket expenses. So we're satisfied with that and we're willing to accept that to have some closure to this, to get this portion of this mess with her over so she can get this behind her and go forward.

The city has really done that. We're back to business as usual and I know she would like some normalcy within her life.

O'BRIEN: Yes, I would imagine...

FANNING-LASSETER: And that...

O'BRIEN: I would imagine so.

FANNING-LASSETER: Yes.

O'BRIEN: The total cost, though, was something like $43,000, I think is the final figure that you guys came up with.

Why not have her foot the entire bill?

FANNING-LASSETER: Well, we did ask for that. We did ask for that and that was what our attorney had spoken to the Wilbanks' attorney about. But it appeared that the $13,000 was what they wanted to pay and we're very appreciative that they wanted to pay anything at all. So we're better off than we were and we're not going to complain about that. And we're going to be satisfied to have that and move on.

O'BRIEN: I know that the city attorneys are now negotiating with Jennifer Wilbanks' attorney.

What exactly is on the table? What's being negotiated?

FANNING-LASSETER: Well, at this point in time, we have an agreement in theory of a payment of the $13,000. But we have nothing signed as of right now and then so until that happens, I will not be able to release any information on that.

O'BRIEN: I know you've said that you're not judge and jury, but you are the mayor of a community and everybody has got an opinion.

Do you think that Jennifer Wilbanks should do community service? What exactly would you personally like to see come out of all of this?

FANNING-LASSETER: Well, personally, I do not know what her problems are. We have not spoken with Jennifer, nor her family. So that really needs to come from someone who speaks with her and knows what's going on with her. When they indicted her yesterday, the grand jury listened to evidence. I haven't heard the evidence. So it really needs to come from someone who has spoken with her, who knows what she's facing at this time, and that would not be me.

O'BRIEN: Would you like an apology?

FANNING-LASSETER: I would love to see an apology from Ms. Wilbanks to everybody. And I really believe that would bring closure throughout the world, to be honest with you. I think if she came out and she said, you know, I just made a really bad mistake, I'm very sorry, I know everybody has been through a lot of expense and emotion about this, but I think it would bring this to an end for her. And I think that's what everybody is very concerned about right now, and that is her emotional state and how she can bring closure and get over this.

O'BRIEN: Duluth Mayor Shirley Fanning-Lasseter joining us this morning.

Thanks for being with us, Mrs. Mayor.

We certainly appreciate it.

FANNING-LASSETER: Thank you, Soledad.

O'BRIEN: Bill.

HEMMER: About 12 minutes past the hour.

Soledad, thanks for that.

It is May 26th on the calendar and the wind chill in Boston right now is 39 degrees.

CHAD MYERS, CNN METEOROLOGIST: Yes. HEMMER: Good not to be in Boston, Chad.

MYERS: Yes. I mean that's like opening day in Detroit.

HEMMER: So true. Yes.

MYERS: And opening day was a month-and-a-half ago. Yes, exactly.

(WEATHER REPORT)

O'BRIEN: Well, Michael Jackson's defense team rests its case. How much help did it get from its last witness? We'll take a look at comedy star Chris Tucker's testimony.

HEMMER: Also, this stunning discovery. An underground fault that could cause the most devastating earthquake in U.S. history.

O'BRIEN: And tomorrow I'll be live on board the USS John F. Kennedy. There it is docked along the Hudson River. We've got special coverage of New York City's Fleet Week all morning long.

A short break.

We're back in a moment.

(COMMERCIAL BREAK)

HEMMER: Stunning news from southern California now. Researchers there predict a quake on a recently discovered fault line could cause the most catastrophic natural disaster in U.S. history. To find this fault, go beneath the Earth in Los Angeles.

Here's Casey Wian.

(BEGIN VIDEO TAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): It would make the 1994 North Ridge earthquake seem like a speed bump. It could even dwarf the devastating quake that killed 5,000 in Kobe, Japan a year later.

Two miles underneath Los Angeles lies Puente Hills Fault, discovered in 1999. Now, using new computer software, scientists have calculated the death and destruction it's likely to cause. They say the fault is capable of a magnitude 7.5 quake. Here's how it would spread throughout the Los Angeles Basin. The predicted result, between 3,000 and 18,000 deaths, $82 billion to $252 billion in direct economic losses, and 30,000 to 99,000 tons of debris.

NED FIELD, U.S. GEOLOGICAL SURVEY: So this is really one of the worst scenarios one could imagine for the United States. For the residents of L.A., we don't want people to panic and we want to maintain perspective. It turns out, you're thousands of times more likely to die of a heart attack than from this earthquake. You're hundreds of times more likely to die in an auto accident than in this earthquake. In fact, your odds are about even for getting struck by lightning.

WIAN: Unlike the well known and easy to spot San Andreas Fault, long thought to be California's main threat, quakes on so-called blind thrust faults such as Puente Hills are relatively rare, occurring every 2,000 or 3,000 years. But they're very violent and dangerous.

The new study has government disaster officials rethinking their strategies.

JEFFREY LUSK, FEMA: We haven't had a bull's eye earthquake event that has caught us, in a major way, unprepared. These kind of studies help to enhance our awareness, enhance our planning. The truth is if we have an earthquake of this magnitude in this area, you're talking about a long-term change, probably, to the economics of the southland.

WIAN: The good news is that according to a new California earthquake risk prediction map now posted on the Internet, the chance of it happening today or tomorrow is minimal. Beyond that, no one knows.

(on camera): Of course, there is nothing that can be done to minimize the size of an earthquake. But disaster management officials say minimizing damages from a devastating quake is a matter of personal responsibility and they're urging every California resident and building owner to become better prepared.

Casey Wian, CNN, Los Angeles.

(END VIDEO TAPE)

HEMMER: Part of the Puente Hills Fault last ruptured in 1987. A magnitude 6 quake then. It killed eight people and caused $350 million in damage -- Soledad.

O'BRIEN: Well, just a few more witnesses to go in the Michael Jackson trial. Just how the pop star is holding up as the trial nears its end. We've got an answer from inside the Jackson camp ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Back to Jack, the Question of the Day now.

CAFFERTY: Thank you.

Things are looking up. Tax collections for states around the country, $600 billion last year. And the money is coming in even faster this year. Record levels. "USA Today" reports the April surprise has put nearly every state at or above what they expected to get. Tax cuts and major new spending programs under discussion all around the country.

So the question is this -- how should your state spend its extra money?

Carol in Maryland: "How dare you? State employees' raises are the first things cut when revenues are slow. I don't hear you complaining about that. The first year of an up tick is usually the only year we get a raise of any substance and even then it never approaches the cost of living."

Eric in California: "Any additional funds in California should be spent to build homes for relocating sexual offenders on prison grounds. Let these creeps walk out the gate and into their new home. Just keep them out of the neighborhoods."

Buddy in Oklahoma: "If the states are receiving such huge surpluses, then I think they should spend that money to fix the roads and bridges. Been on a cross country road trip lately?"

And Beth in Delaware: "Give our 18-year-old daughter state assistance for college. In reality, we all know the surpluses will go for social programs -- welfare, prison education programs, Medicaid, not back to the taxpayers who created the surplus. So I'll keep looking for those scholarships and fill out those student loan forms."

O'BRIEN: The sad thing is that everybody who has an idea really has a good point. I mean, you know, there's just so many wants and needs and no matter what the surplus is in a particular state, there's no way all of the money is going to be able to cover it.

HEMMER: Good to have these problems. You've got extra cash, you've got some more options, it's not a bad thing.

CAFFERTY: No. No. More money is good. Are you listening, Atlanta?

O'BRIEN: Thanks, Jack.

On his show last night, Jay Leno poked some fun at President Bush's public speaking.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: President Bush, of course, on the road, continued to talk about Social Security. You know, I think President Bush is starting to realize now he's not the most dynamic speaker. Now he's trying to entertain the people a little bit while he talks.

Well, show that footage from the trip.

Take a look.

You see what I'm saying?

Now watch what happens here.

Oh, he hit a guy right in the head.

(END VIDEO CLIP)

O'BRIEN: Oh, that was kind of funny. HEMMER: Well, they go back to the president after Michael Jackson is over?

O'BRIEN: Oh, yes. No question. He's going to stick with Michael Jackson for a while, too, I think.

HEMMER: You might be right. At least a couple more weeks.

Smoothies and frozen coffee drinks very popular. Did you know some of them have as many calories as a burger, fries and a hot fudge sundae combined? Tips on cutting those calories still to come this hour right after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Get the latest news every morning in your e-mail. Sign up for AMERICAN MORNING "Quick News" at cnn.com/am.

Still to come this morning, President Bush prepares for his first ever meeting with Palestinian President Mahmoud Abbas. Can the talks get the peace process back on track?

That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone.

Just about 8:30 here in New York.

Good morning to you.

In a moment here, a big meeting about to go down today in Washington. Palestinian leader Mahmoud Abbas in talks with the president, George Bush, today.

O'BRIEN: The question is, is this a real chance for peace? We're going to talk to an expert in Mideast affairs about just what's happening behind-the-scenes, whether this is an opportunity any different from the ones in the past.

HEMMER: First, though, back to the headlines and back to Carol Costello with those -- hello.

COSTELLO: Hello.

Good morning, everyone.

Now in the news, new developments out of Iraq this morning.

Officials there now saying they have credible information that terror leader Abu Musab al-Zarqawi has been wounded and that they do not know if he is alive or dead. That report has not been verified. The announcement comes just hours after a series of attacks ripped through Baghdad. At least eight people were killed in the span of just 70 minutes. Authorities keeping up the search for two missing children in Idaho. 8-year-old Shasta Groene and her 9-year-old brother Dylan were last seen a week-and-a-half ago. A public memorial was held Wednesday for their slain mother and brother. Hundreds of people were there. A smaller service was held for close family and friends.

Former President Bill Clinton is praising India for its handling of the battle against AIDS and the country's efforts to rebuild after the tsunami disaster. Clinton kicks off a three day visit to India as a special envoy for the United Nations. He's slated to speak on AIDS prevention in New Delhi and he'll visit tsunami battered villages tomorrow. He then heads on to Sri Lanka.

And thousands of U.S. military personnel and their families in New York this morning for the 18th Annual Fleet Week. Hundreds of ships out on display. Veterans and active military personnel taking part in the festivities. Join Soledad tomorrow morning. She will be aboard the USS John F. Kennedy with live coverage of all the celebrations and hopefully she'll have some sunshine -- Bill.

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Aired May 26, 2005 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: A developing story out of Baghdad today. Government officials there say they have new information that Zarqawi, the most wanted man in Iraq, is wounded.
Also in Iraq today, the government announcing a huge crackdown on insurgents. Forty thousand troops will cordon off the capital city.

And in Washington, Palestinian leader Mahmoud Abbas meeting today with the president, a first in five years, and maybe a key step for peace, on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning.

Welcome back, everybody.

Lots of major announcements, in fact, coming out of Iraq in just the last couple of hours. Iraq's interior minister saying that he has received some credible information that terrorist Abu Musab al-Zarqawi is wounded.

HEMMER: Also, he says he's not even sure whether or not Zarqawi is alive or dead. Ryan Chilcote reporting from Baghdad on that in a moment, and everything else that's happening in Iraq.

We'll get to that.

But first, let's get to Jack right now -- good morning.

JACK CAFFERTY, CNN CORRESPONDENT: Thanks, Bill.

Coming up in "The Cafferty File," a study finds that obese women face bigger challenges than just losing weight.

Charges in a terror case could be dropped because the alleged terrorist was wearing handcuffs. Imagine that, an alleged terrorist in handcuffs. It's just mind-boggling.

And New York City makes it easier to answer the door when nature calls.

HEMMER: Only in Manhattan.

O'BRIEN: I can't wait for that.

Thank you, Jack.

Now to the new developments coming out of Iraq this morning. Five attacks in a period of only 70 minutes, killing eight people, wounding 11 this morning. The big news, though, coming from Iraqi government officials, beginning with new information on the most wanted terrorist, Abu Musab al-Zarqawi.

Let's get right to Ryan Chilcote.

He's live for us in Baghdad this morning -- Ryan, what's the update?

RYAN CHILCOTE, CNN CORRESPONDENT: Good morning, Soledad.

Well, the Iraqi interior minister making this very startling and dramatic announcement that Abu Musab al-Zarqawi, the leader of al Qaeda in Iraq, is wounded. The interior minister said that he got this information about five days ago. He says he believes it is true. The only thing he says he doesn't know is the extent of Abu Musab al- Zarqawi's injuries.

Very interesting. We've seen rumors on the Internet, postings on the Internet to that effect, reportedly from al Qaeda in Iraq, saying that Zarqawi was wounded. But up until this announcement from the Iraqi interior minister this morning, all U.S. and Iraqi officials we spoke with said they simply don't know -- Soledad.

O'BRIEN: Well, Ryan, what do you make of this newly announced major offensive against the insurgents?

CHILCOTE: Well, the Iraqis are saying it will be unprecedented in its size. They're calling it Operation Thunder. They say it will begin next week. That would be Sunday here in Baghdad. They say that it will involve some 40,000 members of Iraqi security forces effectively fanning out throughout the city while at the same time sealing off the borders of this city, setting up 600 checkpoints. They say it's an aggressive offensive to try to stop the violence that has rocked the Iraqi capital and all of Iraq over the last month. Of course, as you know, more than 600 Iraqis have been killed since Iraq's most recent government was formed at the end of last month.

Meanwhile, we were speaking just yesterday, Soledad, about the U.S. military's most recent offensive, taking place out in Haditha, about 130 miles west of the Iraqi capital. That's called Operation New Market. It's now in its third day. The most recent update we're getting from the Marines is that those -- about 1,000 Marines are still in Haditha. They say that the operation is going well. They say they have killed some 10 insurgents there. They're also saying that about two Marines have been wounded so far -- Soledad.

O'BRIEN: Some very big news coming to us out of Iraq this morning.

Ryan, thanks for that update.

Let's get to some of the other headlines this morning with Carol Costello -- good morning again, Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning.

Good morning to all of you.

Now in the news, the U.S. Senate can vote as early as today on the nomination of John Bolton. He's President Bush's pick to be the next U.S. ambassador to the United Nations. Republican senators say they are confident Bolton will be approved, but some Democrats say they may want to delay the vote until the administration gives them access to some documents they've asked for weeks ago.

The House has approved a $491 billion military spending bill. The lawmakers dropped a measure that would have limited the role of women in combat, leaving the decisions up to the Pentagon. The Senate votes on its version of the defense bill next month.

The U.S. Embassy in Jakarta, Indonesia closing its doors today. American officials citing terror threats. Other U.S. facilities in the area also shut down. The closings come four days after thousands of Muslims in Indonesia protested a "Newsweek" report suggesting American interrogators desecrated the Koran. No word on when the buildings will reopen.

And a CNN "Security Watch" now. The U.S. may not be doing enough to keep weapons of mass destruction out of American ports. Two newly released congressional reports criticize efforts to keep cargo containers out of terrorists' reach. The Senate permanent subcommittee on investigations, which requested the reports, is set to discuss the findings in the next hour.

Stay tuned to CNN day and night for the most reliable news about your security.

Back to you.

HEMMER: All right, Carol, thank you.

President Bush today meets with the Palestinian leader for the first time since he has been in office. He will talk about the new Mideast peace process with the new Palestinian president, Mahmoud Abbas.

Andrea Koppel brings us an update now from the State Department.

(BEGIN VIDEO TAPE)

ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): When Mahmoud Abbas arrives at the White House, that picture will speak a thousand words. After more than four years of refusing to meet with the now deceased Yasser Arafat, President Bush is eager to welcome the newly elected Palestinian leader.

MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: I do think that there is an opportunity here, a window of opportunity, but it's not going to last very long. And so this meeting is truly important. CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: They will build a relationship that is one that is based on the good faith that only democratic leaders can bring.

KOPPEL: After Arafat's death in November and democratic Palestinian elections in January, the U.S. quickly renewed its push for peace. Secretary of State Rice traveled to the region in February to meet with both leaders. The U.S. has also appointed a U.S. general to help restructure Palestinian security services and tapped a former World Bank chief as special envoy to Gaza.

Israel's prime minister, too, has reached out to Abbas. In February, the two leaders announced a cease-fire. But months later, it's on shaky ground. Israel has only released about 500 of a promised 900 Palestinian prisoners, one of its few concessions.

Again this week, Sharon countered that Palestinian terrorism has not ended.

ARIEL SHARON, ISRAELI PRIME MINISTER: The smuggling of weapons and arms production continues. And there is no real prevention of terrorist actions.

KOPPEL: Militant groups like Hamas, which won big in recent municipal elections, still refuse to answer to Abbas. The next milestone on the horizon, Israel's expected withdrawal from Gaza, slated to begin in August. Palestinians say disengagement must be followed by the next stage in the U.S.-backed road map to peace.

NASIR AL-KIDWA, PALESTINIAN FOREIGN MINISTER: Gaza alone is not going to work. It's as simple as that. We'll be counting days until the next confrontation, the next intifada.

KOPPEL (on camera): Abbas will also ask President Bush to funnel $200 million in promised U.S. aid directly to the Palestinian Authority, helping to boost his credibility ahead of parliamentary elections this summer.

Andrea Koppel, CNN, at the State Department.

(END VIDEO TAPE)

HEMMER: Also, Abbas is encouraging the terrorist organization Hamas to participate in these elections. And stay tuned to CNN for live coverage of that news conference with President Bush and Mahmoud Abbas later today, at 11:25 a.m. Eastern time. That's 8:25 out on the West Coast -- Soledad.

O'BRIEN: The runaway bride may soon have to defend herself in court. Jennifer Wilbanks has now been charged with making a false statement and making a false police report, one a felony charge, the other a misdemeanor. She could get up to six years behind bars and spend $11,000 in fines.

Shirley Fanning-Lasseter is the mayor of Duluth, joining us this morning. Nice to see you, Mrs. Mayor.

Thanks for being with us.

SHIRLEY FANNING-LASSETER, DULUTH MAYOR: Thank you, Soledad, for having me.

O'BRIEN: Are you surprised that Jennifer Wilbanks was indicted?

FANNING-LASSETER: I'm a little surprised that she was indicted on both the counts, but I do have a tremendous amount of faith in our judicial system and I'm sure they did that for a reason. Hopefully, it will give them quite a bit of leverage to work with her and see that she can get the help that she needs.

O'BRIEN: Does that mean you'd like to see her spend some time in jail or you'd like to see her not spend any time in jail?

FANNING-LASSETER: Well, I don't think that's up to me. I'm not judge nor jury, and it's strictly up to the district attorney's office. We, as a city, have absolutely nothing to do with that. But I do have a lot of faith in them.

O'BRIEN: Yesterday, through her lawyer, Jennifer Wilbanks offered to reimburse the city some $13,000, I believe was the number, in overtime costs for the folks who spent their time looking for her.

Are you pleased with that and that number?

FANNING-LASSETER: Well, Soledad, it's the number that they wish to reimburse and it encompasses all of the overtime hours, as well as the out of town, out of pocket expenses. So we're satisfied with that and we're willing to accept that to have some closure to this, to get this portion of this mess with her over so she can get this behind her and go forward.

The city has really done that. We're back to business as usual and I know she would like some normalcy within her life.

O'BRIEN: Yes, I would imagine...

FANNING-LASSETER: And that...

O'BRIEN: I would imagine so.

FANNING-LASSETER: Yes.

O'BRIEN: The total cost, though, was something like $43,000, I think is the final figure that you guys came up with.

Why not have her foot the entire bill?

FANNING-LASSETER: Well, we did ask for that. We did ask for that and that was what our attorney had spoken to the Wilbanks' attorney about. But it appeared that the $13,000 was what they wanted to pay and we're very appreciative that they wanted to pay anything at all. So we're better off than we were and we're not going to complain about that. And we're going to be satisfied to have that and move on.

O'BRIEN: I know that the city attorneys are now negotiating with Jennifer Wilbanks' attorney.

What exactly is on the table? What's being negotiated?

FANNING-LASSETER: Well, at this point in time, we have an agreement in theory of a payment of the $13,000. But we have nothing signed as of right now and then so until that happens, I will not be able to release any information on that.

O'BRIEN: I know you've said that you're not judge and jury, but you are the mayor of a community and everybody has got an opinion.

Do you think that Jennifer Wilbanks should do community service? What exactly would you personally like to see come out of all of this?

FANNING-LASSETER: Well, personally, I do not know what her problems are. We have not spoken with Jennifer, nor her family. So that really needs to come from someone who speaks with her and knows what's going on with her. When they indicted her yesterday, the grand jury listened to evidence. I haven't heard the evidence. So it really needs to come from someone who has spoken with her, who knows what she's facing at this time, and that would not be me.

O'BRIEN: Would you like an apology?

FANNING-LASSETER: I would love to see an apology from Ms. Wilbanks to everybody. And I really believe that would bring closure throughout the world, to be honest with you. I think if she came out and she said, you know, I just made a really bad mistake, I'm very sorry, I know everybody has been through a lot of expense and emotion about this, but I think it would bring this to an end for her. And I think that's what everybody is very concerned about right now, and that is her emotional state and how she can bring closure and get over this.

O'BRIEN: Duluth Mayor Shirley Fanning-Lasseter joining us this morning.

Thanks for being with us, Mrs. Mayor.

We certainly appreciate it.

FANNING-LASSETER: Thank you, Soledad.

O'BRIEN: Bill.

HEMMER: About 12 minutes past the hour.

Soledad, thanks for that.

It is May 26th on the calendar and the wind chill in Boston right now is 39 degrees.

CHAD MYERS, CNN METEOROLOGIST: Yes. HEMMER: Good not to be in Boston, Chad.

MYERS: Yes. I mean that's like opening day in Detroit.

HEMMER: So true. Yes.

MYERS: And opening day was a month-and-a-half ago. Yes, exactly.

(WEATHER REPORT)

O'BRIEN: Well, Michael Jackson's defense team rests its case. How much help did it get from its last witness? We'll take a look at comedy star Chris Tucker's testimony.

HEMMER: Also, this stunning discovery. An underground fault that could cause the most devastating earthquake in U.S. history.

O'BRIEN: And tomorrow I'll be live on board the USS John F. Kennedy. There it is docked along the Hudson River. We've got special coverage of New York City's Fleet Week all morning long.

A short break.

We're back in a moment.

(COMMERCIAL BREAK)

HEMMER: Stunning news from southern California now. Researchers there predict a quake on a recently discovered fault line could cause the most catastrophic natural disaster in U.S. history. To find this fault, go beneath the Earth in Los Angeles.

Here's Casey Wian.

(BEGIN VIDEO TAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): It would make the 1994 North Ridge earthquake seem like a speed bump. It could even dwarf the devastating quake that killed 5,000 in Kobe, Japan a year later.

Two miles underneath Los Angeles lies Puente Hills Fault, discovered in 1999. Now, using new computer software, scientists have calculated the death and destruction it's likely to cause. They say the fault is capable of a magnitude 7.5 quake. Here's how it would spread throughout the Los Angeles Basin. The predicted result, between 3,000 and 18,000 deaths, $82 billion to $252 billion in direct economic losses, and 30,000 to 99,000 tons of debris.

NED FIELD, U.S. GEOLOGICAL SURVEY: So this is really one of the worst scenarios one could imagine for the United States. For the residents of L.A., we don't want people to panic and we want to maintain perspective. It turns out, you're thousands of times more likely to die of a heart attack than from this earthquake. You're hundreds of times more likely to die in an auto accident than in this earthquake. In fact, your odds are about even for getting struck by lightning.

WIAN: Unlike the well known and easy to spot San Andreas Fault, long thought to be California's main threat, quakes on so-called blind thrust faults such as Puente Hills are relatively rare, occurring every 2,000 or 3,000 years. But they're very violent and dangerous.

The new study has government disaster officials rethinking their strategies.

JEFFREY LUSK, FEMA: We haven't had a bull's eye earthquake event that has caught us, in a major way, unprepared. These kind of studies help to enhance our awareness, enhance our planning. The truth is if we have an earthquake of this magnitude in this area, you're talking about a long-term change, probably, to the economics of the southland.

WIAN: The good news is that according to a new California earthquake risk prediction map now posted on the Internet, the chance of it happening today or tomorrow is minimal. Beyond that, no one knows.

(on camera): Of course, there is nothing that can be done to minimize the size of an earthquake. But disaster management officials say minimizing damages from a devastating quake is a matter of personal responsibility and they're urging every California resident and building owner to become better prepared.

Casey Wian, CNN, Los Angeles.

(END VIDEO TAPE)

HEMMER: Part of the Puente Hills Fault last ruptured in 1987. A magnitude 6 quake then. It killed eight people and caused $350 million in damage -- Soledad.

O'BRIEN: Well, just a few more witnesses to go in the Michael Jackson trial. Just how the pop star is holding up as the trial nears its end. We've got an answer from inside the Jackson camp ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Back to Jack, the Question of the Day now.

CAFFERTY: Thank you.

Things are looking up. Tax collections for states around the country, $600 billion last year. And the money is coming in even faster this year. Record levels. "USA Today" reports the April surprise has put nearly every state at or above what they expected to get. Tax cuts and major new spending programs under discussion all around the country.

So the question is this -- how should your state spend its extra money?

Carol in Maryland: "How dare you? State employees' raises are the first things cut when revenues are slow. I don't hear you complaining about that. The first year of an up tick is usually the only year we get a raise of any substance and even then it never approaches the cost of living."

Eric in California: "Any additional funds in California should be spent to build homes for relocating sexual offenders on prison grounds. Let these creeps walk out the gate and into their new home. Just keep them out of the neighborhoods."

Buddy in Oklahoma: "If the states are receiving such huge surpluses, then I think they should spend that money to fix the roads and bridges. Been on a cross country road trip lately?"

And Beth in Delaware: "Give our 18-year-old daughter state assistance for college. In reality, we all know the surpluses will go for social programs -- welfare, prison education programs, Medicaid, not back to the taxpayers who created the surplus. So I'll keep looking for those scholarships and fill out those student loan forms."

O'BRIEN: The sad thing is that everybody who has an idea really has a good point. I mean, you know, there's just so many wants and needs and no matter what the surplus is in a particular state, there's no way all of the money is going to be able to cover it.

HEMMER: Good to have these problems. You've got extra cash, you've got some more options, it's not a bad thing.

CAFFERTY: No. No. More money is good. Are you listening, Atlanta?

O'BRIEN: Thanks, Jack.

On his show last night, Jay Leno poked some fun at President Bush's public speaking.

(BEGIN VIDEO CLIP FROM "THE TONIGHT SHOW WITH JAY LENO," COURTESY NBC)

JAY LENO, HOST: President Bush, of course, on the road, continued to talk about Social Security. You know, I think President Bush is starting to realize now he's not the most dynamic speaker. Now he's trying to entertain the people a little bit while he talks.

Well, show that footage from the trip.

Take a look.

You see what I'm saying?

Now watch what happens here.

Oh, he hit a guy right in the head.

(END VIDEO CLIP)

O'BRIEN: Oh, that was kind of funny. HEMMER: Well, they go back to the president after Michael Jackson is over?

O'BRIEN: Oh, yes. No question. He's going to stick with Michael Jackson for a while, too, I think.

HEMMER: You might be right. At least a couple more weeks.

Smoothies and frozen coffee drinks very popular. Did you know some of them have as many calories as a burger, fries and a hot fudge sundae combined? Tips on cutting those calories still to come this hour right after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Get the latest news every morning in your e-mail. Sign up for AMERICAN MORNING "Quick News" at cnn.com/am.

Still to come this morning, President Bush prepares for his first ever meeting with Palestinian President Mahmoud Abbas. Can the talks get the peace process back on track?

That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone.

Just about 8:30 here in New York.

Good morning to you.

In a moment here, a big meeting about to go down today in Washington. Palestinian leader Mahmoud Abbas in talks with the president, George Bush, today.

O'BRIEN: The question is, is this a real chance for peace? We're going to talk to an expert in Mideast affairs about just what's happening behind-the-scenes, whether this is an opportunity any different from the ones in the past.

HEMMER: First, though, back to the headlines and back to Carol Costello with those -- hello.

COSTELLO: Hello.

Good morning, everyone.

Now in the news, new developments out of Iraq this morning.

Officials there now saying they have credible information that terror leader Abu Musab al-Zarqawi has been wounded and that they do not know if he is alive or dead. That report has not been verified. The announcement comes just hours after a series of attacks ripped through Baghdad. At least eight people were killed in the span of just 70 minutes. Authorities keeping up the search for two missing children in Idaho. 8-year-old Shasta Groene and her 9-year-old brother Dylan were last seen a week-and-a-half ago. A public memorial was held Wednesday for their slain mother and brother. Hundreds of people were there. A smaller service was held for close family and friends.

Former President Bill Clinton is praising India for its handling of the battle against AIDS and the country's efforts to rebuild after the tsunami disaster. Clinton kicks off a three day visit to India as a special envoy for the United Nations. He's slated to speak on AIDS prevention in New Delhi and he'll visit tsunami battered villages tomorrow. He then heads on to Sri Lanka.

And thousands of U.S. military personnel and their families in New York this morning for the 18th Annual Fleet Week. Hundreds of ships out on display. Veterans and active military personnel taking part in the festivities. Join Soledad tomorrow morning. She will be aboard the USS John F. Kennedy with live coverage of all the celebrations and hopefully she'll have some sunshine -- Bill.

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