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American Morning

Al Qaeda Plot?; Search for Natalee; Freeway Standoff

Aired June 08, 2005 - 9:00   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Federal agents bust a possible al Qaeda cell in California, a terrorist scheme involving hospitals and grocery stores, allegedly hatched inside al Qaeda training camps.
The two men charged in the disappearance of Natalee Holloway in Aruba are going to court this morning. New details about their story from a lawyer in the case.

And an incredible standoff on a California highway. Tense negotiations and a wild ending on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Good morning, everybody. Nine o'clock here in New York. Good to have you along with us today.

Going to talk about the Michael Jackson trial in a moment here. Nancy Grace stops by.

O'BRIEN: Obviously, she's got her on show on "Headline Prime," also one on "Court TV" as well. Every-- also, she's got a new book out. We're going to talk about that ant talk about various cases. And, of course, she's not exactly a wilting wallflower.

HEMMER: Well, she's busy, too.

O'BRIEN: She's got -- we're going to talk about some of those.

HEMMER: Cool.

First, Jack.

What's happening?

JACK CAFFERTY, CNN ANCHOR: At the peak of its production years in 1979, General Motors had 600,000 employees. Today, it has 125,000 and it's going to cut 25,000 of those over the next couple of years. The North American automobile industry is in big trouble, under the gun from foreign manufacturers who get an ever-increasing share of the market.

What can be done to save America's car industry? AM@CNN.com.

O'BRIEN: Jack, thanks.

Let's get right to Carol Costello. She's got a look at the headlines this morning.

Good morning.

CAROL COSTELLO, CNN ANCHOR: I do. Good morning. Good morning to all of you.

"Now in the News," at least three people are dead after a suicide car bomb attack north of Baghdad. One other person was injured in the blast.

In the meantime, a major military push under way near Iraq's border with Syria. Dozens of suspected insurgents have been detained so far.

The FBI may soon be able to subpoena records without the approval of a judge or a grand jury. A Senate committee has voted to extend the FBI's powers in terror investigations as part of the Patriot Act renewal bill. The measure is now heading to the full Senate. In the meantime, a House hearing on the Patriot Act is set to get under way in the next hour.

Former President Jimmy Carter wants the U.S. to shut down the Guantanamo Bay prison camp in Cuba. He says alleged abuses there and prisons in Iraq and Afghanistan are an embarrassment and don't mesh with America's desire to promote freedom and democracy around the world. The former president made the comments during a human rights conference in Atlanta.

Actor Macaulay Culkin is expected in court later this morning in Oklahoma. The star of the "Home Alone" series is facing misdemeanor charges related to a drug arrest last September. Culkin was apparently riding in a car where police say they found a half ounce of marijuana and some other drugs.

And a piece of American history going on the British auction block today. And it sold for a record sum.

A 500-year-old map which could be the first to use the word "America" sold for just over $1 million. The drawing might also be the first to depict the Earth as round. The map sold at Christie's auction house in London.

And this map was supposedly made sometime in the 1500s.

HEMMER: That's cool.

O'BRIEN: Pretty cool.

COSTELLO: Yes, because, you know, Christopher Columbus sailed in 1492, but he thought that North America was actually Asia. So this is the first map depicting it as it really was.

HEMMER: Cool stuff.

O'BRIEN: That's neat.

HEMMER: Thank you, Carol.

New details expected within the hour now. This developing story out of northern California. Federal agents believe they have cracked an al Qaeda terror cell in the town of Lodi, about 40 miles south of Sacramento.

Chris Lawrence is live in Lodi.

Let's start with the father, Chris, and the son who were arrested. What led authorities to them and this story?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Bill, the affidavit -- we've read the federal criminal complaint against these men. And the affidavit shows that this investigation began more than a week ago when a man named Hamid Hayat was on a flight from Pakistan to San Francisco.

That flight was diverted when it turned out Hamid's name was on the no-fly list. He was later allowed to enter the country, but he was questioned then by FBI officials.

Now, court documents show that Hamid at first denied, and then later admitted, that he attended an al Qaeda training camp in Pakistan. In court documents, he apparently describes that camp as a place where they were trained to kill Americans. Now, it also goes on to stay that they received instruction in explosives and weapons, including sessions where photos of President Bush were posted and pasted onto targets that the trainees would then be instructed to shoot at.

Court documents show that the primary targets of Hamid were going to be hospitals and grocery stores in northern California. And apparently, his father, Umer Hayat, allegedly paid for his son's flight and also paid him an allowance while he was training.

HEMMER: Chris, also, about the local mosque there, there were two mosque leaders who were detained. What do we know about them?

LAWRENCE: That's right, both of them were detained on immigration violations. They are both imams, or spiritual leaders of a local mosque here in Lodi. They were both working to develop the building behind me as an Islamic charter school for children. But over the weekend, federal agents say they observed both men meeting separately with Umer Hayat, Hamid Hayat's father, and at that point both detained.

Ironically, though, Bill, one of the men, Mohammed Adil Khan (ph), after September 11 here in Lodi, he signed what's known as a declaration of peace with a local rabbi and a Christian minister, basically condemning terrorist activity by religious fanatics.

HEMMER: We should get a press conference, too. We'll point that to our viewers about an hour away, 10:00 Eastern Time, 7:00 there in California. And we'll watch for that.

Chris, thanks. Stay tuned to CNN day and night for the most reliable news about your security -- Soledad.

O'BRIEN: In just about an hour, the two men being held in Aruba in connection with the disappearance of 18-year-old Natalee Holloway are expected to appear before a judge. Holloway has been missing since May 30. She was visiting Aruba with classmates on a senior trip from Alabama.

The suspects -- one of them seen here -- are accused of murder and kidnapping, an attorney says. And I spoke with the defense attorney who is representing one of the men.

(BEGIN VIDEO CLIP)

CHRIS LEJUEZ, DEFENSE ATTORNEY: I did have an opportunity to speak to them. My colleague has also spoken to them on Sunday. I spoke to them on Monday.

They have both denied very categorically knowing Natalee Holloway or ever having any contact with her. They never spoke to her. All they know about her is what they read or saw in the press.

O'BRIEN: They have been formally accused but not formally charged. I believe that's correct. What are the -- what are the accusations of exactly?

LEJUEZ: The accusations are very serious. They are murder, what you would consider in the United States murder one, conspiracy to commit murder, homicide, what you might consider murder two, conspiracy to commit homicide, and also kidnapping, what you would call capital kidnapping, kidnapping with a deadly result.

O'BRIEN: Have the prosecutors told you or filled you in about any of the evidence that they have in this case?

LEJUEZ: They have. What I have seen up to now does not consist of any forensic evidence. We have only statements from certain -- certain witnesses that have stated they have seen certain people who might be the suspects. But they -- none of them have confirmed that they have ever seen Natalee Holloway in the company of any of these two suspects.

(END VIDEO CLIP)

O'BRIEN: I also spoke earlier with Natalee's stepfather, who is still holding out hope for the very best.

(BEGIN VIDEO CLIP)

GEORGE "JUG" TWITTY, NATALEE HOLLOWAY'S STEPFATHER: I do believe Natalee's alive. And every day that goes by even give us more hope that Natalee's alive.

The charges, as far as what the defense attorney is saying, I know nothing about that. The authorities here, our liaison with the police department, has said nothing to us about that.

O'BRIEN: I know you're getting lots of support in the community. Not only your hometown, of course, but in Aruba as well. How do you hold out hope for her safe return after so much time has gone by?

TWITTY: It's difficult. There was a period after there, you know, after about the third day that you think, well, definitely something's happened, that they may find her, you know, somewhere. But as we go further into it, and there's no physical evidence, nobody can provide any evidence of any -- any foul play at the present time, so it give us hope that maybe somebody's holding her somewhere.

(END VIDEO CLIP)

O'BRIEN: Aruba police say they've gotten more than 200 tips in the case. And searchers, including dive teams, are continuing their hunt for Natalee even at this hour -- Bill.

HEMMER: About nine minutes past the hour. A look at California again today.

An Alabama man, now recovering from a gunshot wound he suffered, after leading police on a dramatic freeway chase in southern California, six hours total, all live on television, too. And Peter Viles watched it all in Los Angeles.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): It shut down one of the nation's busiest freeways for hours, a bizarre standoff between a small army of police and armed man threatening to kill himself.

UNIDENTIFIED MALE: There's only two bullets in this car and they're meant for me. So I can't get any clearer than that. Your officers are not in danger.

VILES: The story began in morning rush hour, police pursuing the driver of a white van believing he had attempted to kidnap a woman north of Los Angeles and that he was armed and dangerous.

DEREK BELL, KCAL HELICOPTER REPORTER: The suspect, apparently armed with a .9-millimeter handgun, said that he will not be taken by the police.

VILES: At times, it slowed to a stop in rush hour traffic. At one point, the driver pulls a U-turn on Interstate 10, but the California Highway Patrol was patient and effective, laying a trap with a spiked strip right here to flatten the van's tires.

BELL: Spike strip got it.

VILES: Then another textbook tactic, the so-called pit maneuver, or tactical ramming. CHP did it several times.

BELL: Here it comes. Here it comes. Once again, spinning it around. Oh, look at that. VILES: At that point, a second drama begins. Patrolmen surround the car, then bring in the big guns, literally, three armored vehicles from the sheriff S.W.A.T. team pinning the vehicle against a wall.

CAPT. TOM SPENCER, L.A. COUNTY SHERIFF'S DEPT.: It was ideal because we had the large wall on the opposite side of the vehicle. We didn't have to evacuate anybody. He was totally isolated. And we really took our time and tried to deal with him and resolve the situation in a peaceful manner.

VILES: The standoff lasted three-and-a-half hours and ended with a bang, officers using a poll to push a percussion grenade and tear gas into the car. They also fired a single gunshot at the driver.

Minutes later, a police dog dragged the driver from the vehicle. He was wounded, but alive.

Peter Viles for CNN, Los Angeles.

(END VIDEOTAPE)

HEMMER: We got an update a short time ago from L.A. Police there say the suspect hospitalized today, in stable condition -- Soledad.

O'BRIEN: Chad Myers at the CNN center. He's got a look at the latest forecast for us.

(WEATHER REPORT)

HEMMER: In a moment here, we're joined live in the studio by "Headline Prime's" Nancy Grace, talking about the Jackson trial and her new book. It's called "Objection." Nancy's here in a moment.

O'BRIEN: Also, a medical first. A woman gives birth after an ovarian transplant from her twin sister. It could have huge implications for other women. Dr. Gupta explains.

HEMMER: Also, is America missing an opportunity to try to set a new course for the world? A former member of the president's team with some criticism for the current agenda. He's got a new book out, too. We'll talk to him a bit later this hour when we continue after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

NANCY GRACE, "HEADLINE PRIME": Elizabeth, every time you play that footage of the baby dangling, it gives me angina.

Clearly, only a moron would stay on this side of the boat -- well there -- sorry, Beth, I'm going down.

And today, Michael Jackson made it pretty much on time and wearing his pants. Have you ever allowed your client to go in front of a jury wearing a pair of these?

Well, you're right about this, Jim Moret, no matter how you want to look at it, it's hard to put perfume on a pig.

(END VIDEO CLIP)

O'BRIEN: Hard to put perfume on a pig. Not everybody can say that, but you can watch her on "Court TV" and CNN's "Headline News," as the host of her own show. And as we just saw, Nancy Grace really never at a loss for words or short of her own opinions.

It's something that's echoed in her new book. It's called "Objection: How High Priced Defense Attorneys, Celebrity Defendants and a 24/7 Media Have Hijacked our Criminal Justice System." Nancy Grace with us.

Nice to see you. Thanks for talking with us.

GRACE: Thank you for having me.

O'BRIEN: We'll get to the book in just a moment, because there's a lot of...

GRACE: Oh, yes.

O'BRIEN: ... celebrity cases we're going to talk about. Let's talk about Michael Jackson. Fourteen hours, long time or short time, in your mind?

GRACE: No, I don't think it's a long time. The jury instructions alone were over 100 pages. And if you look at it in real time, they went out on Friday. They had about two hours. From my knowledge of juries, that gave them time to go in, go to the bathroom, everybody order a soft drink, pick a foreperson, and go home.

O'BRIEN: So it's a slow-moving system.

GRACE: Yes, it really is.

O'BRIEN: Natalee Holloway, as you well know, that case, the young lady is still missing. I talked to the man who's defending one of the suspects. He was defending two, both of them, and now he's defending just one.

What do you think that indicates?

GRACE: Interesting. He told me that last night. And immediately, a red flag went up for me, because I've seen lawyers represent co-defendants.

Typically, the problem with that is they will have an inconsistent defense. In other words, they don't have the same story. One has a better story than the other. So there's a chance one will roll on the other. He's going to represent one. They have a different system there, the Dutch system, but they are formally charged with murder.

O'BRIEN: Let's talk about the book a little bit. You tell the story -- and really, it goes through the whole book. I think it's very obviously a formative experience for you, the mugging of your fiance. He was shot in the face several times. That was back in 1980, and he died.

How did that affect the next thing that was going to happen to you?

GRACE: Soledad, I was in school to be a Shakespearean literature professor, which was really my joy. Since then, I don't think I've opened a Shakespearean lit book since. I just have not had the heart for it.

And those weeks and months following Keith's murder, for every crime victim, were a defining time in my life. You said something funny when you intro'd me, that I'm never for a loss for words. You know what? When I was even in law school, I wouldn't even raise my hand.

O'BRIEN: Really?

GRACE: I did not want to be singled out, I didn't want to stand out. I didn't want to speak out.

O'BRIEN: What changed? Because I can't even imagine that. I mean...

GRACE: The first time I had a violent crime victim to represent. I remember my first murder trial. Her name was Mary.

She was a minority female from a housing project in Atlanta. And I knew her only in death, but she taught me what it means to be an advocate, to care about something more than yourself.

O'BRIEN: Your critics say when you bring that on TV and you basically declare people guilty before they've got even gotten into day one of the trial is viciously unfair. I mean, you have a forum. You're on TV in front of a lot of people.

GRACE: Well, they declare them innocent just as much as I do. And if you take a hard look at what's going on, on TV, there are many more defense-oriented anchors and guests and pundits.

So, you know what? Have at it. And what we think really doesn't mean a hill of beans. All that matters is what the jury thinks.

O'BRIEN: Why do you hate defense attorneys?

GRACE: I don't hate them.

O'BRIEN: Well, you severely dislike defense attorneys? GRACE: I just don't want to -- I wouldn't want to live my life that way, standing in front of a jury and BS'ing my way to an acquittal.

O'BRIEN: Doesn't everybody have a right to representation?

GRACE: Yes, I'm not saying they don't. I'm just saying it's just not my cup of tea, period.

O'BRIEN: You liked Johnnie Cochran, though. You worked with him.

GRACE: I do. I do. I still like him.

I just got back from his funeral. I like him very much, and his wife, Dale. They're very dear to me.

You know, he never treated me like a sidekick, which I was. And I knew it.

I was so angry about the Simpson verdict that it took me a long time to realize he was not the one that committed double murder. But I learned from him.

I saw how he even walked into a room. And then I got it, why defense attorneys win cases. They can be charming, charismatic, just like Geragos.

O'BRIEN: It's not about the case?

GRACE: Not always. Not always.

O'BRIEN: It's not about the facts of the case, it's how they walk into a room sometimes?

GRACE: Not always.

O'BRIEN: Twenty-four-hour TV, how do you think it's changing trials?

GRACE: Well...

O'BRIEN: Or, let's even just expand that to intense media scrutiny. I mean, the Michael Jackson case, just one of a...

GRACE: Yes, double-edged sword. I remember at the Peterson trial there was actually a hot dog stand at the corner of the courthouse. I nearly did a black flip from the circus-like atmosphere. But not in that courtroom, oh, no. Delucchi kept it outside.

It's double-edged. Number one, just like everybody, you act a lot different when you're at home by yourself than when you're in front of a camera or people are watching. So I'm happy that judges in particular, and defense lawyers and prosecutors, behave a little better with the camera in the courtroom. Regarding the reality of 24-hour media, the defense has the ability to go on air and pronounce various defense theories. You saw the Peterson theory morph four or five times before it made it to the jury. They were kind of like picking their defense, who really did it. The prosecution is disallowed really from making such statements and impressing potential jurors prior to trial, which simply is not fair.

O'BRIEN: The book is called "Objection" by Nancy Grace.

GRACE: You said it correctly, "Objection." Hey, a lot of the money goes to the National Center for Missing and Exploited Children.

O'BRIEN: Oh, that's great. And I know you wrote it with Diane Clehane.

GRACE: Diane Clehane.

O'BRIEN: Terrific writer.

GRACE: She cracked the whip on me.

O'BRIEN: I bet she did. Thanks. Nice to see you, Nancy. Thanks for coming by.

GRACE: Thank you, Soledad.

O'BRIEN: Bill.

HEMMER: See you, friend.

Let's get a break here in a moment.

Dr. Gupta's back. More on this medical milestone. A woman giving birth after an ovarian tissue transplant. The doctor who performed the procedure calls it a miracle. Could it help other women in the end? We'll talk about that with Sanjay when we continue in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: All right. Welcome back. "Question of the Day" with Jack.

CAFFERTY: Thanks, Bill.

GM announced it's going to cut 25,000 jobs over the next couple of years. At its peak it 1979, they had 600,000 workers. Today, they have a paltry 125,000.

The company said healthcare costs add $1,400 to the price of every car and truck they build. And it's not just GM that's in trouble. Ford and Chrysler are also watching as foreign automakers capture an ever-increasing share of the market in North America.

The question is, what can be done to save America's automotive industry?

"The industry has to turn its back," Andrew writes in Michigan, "on fossil fuels and not wait for the oil-interest-driven Bush-Cheney administration to realize conservation and getting away from fossil fuels is actually good for the country. Alternative renewable energy and fuel sources should be a top priority."

Craig in Pennsylvania, "GM has no inalienable right to the largest market share. Reflect on the Fortune 500 list from 1980 versus today across all industries."

Robert in New Jersey, "Last year, June 4, the news on CNN announced GM was making a $3 billion investment in China. Today, the reduction in GM's labor force comes as no surprise."

And Michelle in New York writes: "The American auto industry has, since its inception, persistently ignored changes in the economy and culture over the last century. It has treated the buying public like idiots, expecting a snappy wave of the American flag to compensate for poor design."

O'BRIEN: Interesting feedback.

HEMMER: And Robert did his research, too.

O'BRIEN: Yes, he sure did.

HEMMER: Last year.

O'BRIEN: All right. Jack, thanks.

There's much more AMERICAN MORNING still to come.

(BEGIN VIDEOTAPE)

O'BRIEN (voice-over): Ahead on "90-Second Pop," Russell Crowe arrested after a run-in with a hotel concierge. Can the "Cinderella Man" do damage control on "Letterman" tonight?

Plus, three big CD releases this week. Are they must-haves?

That's Later on AMERICAN MORNING.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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Aired June 8, 2005 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Federal agents bust a possible al Qaeda cell in California, a terrorist scheme involving hospitals and grocery stores, allegedly hatched inside al Qaeda training camps.
The two men charged in the disappearance of Natalee Holloway in Aruba are going to court this morning. New details about their story from a lawyer in the case.

And an incredible standoff on a California highway. Tense negotiations and a wild ending on this AMERICAN MORNING.

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

BILL HEMMER, CNN ANCHOR: Good morning, everybody. Nine o'clock here in New York. Good to have you along with us today.

Going to talk about the Michael Jackson trial in a moment here. Nancy Grace stops by.

O'BRIEN: Obviously, she's got her on show on "Headline Prime," also one on "Court TV" as well. Every-- also, she's got a new book out. We're going to talk about that ant talk about various cases. And, of course, she's not exactly a wilting wallflower.

HEMMER: Well, she's busy, too.

O'BRIEN: She's got -- we're going to talk about some of those.

HEMMER: Cool.

First, Jack.

What's happening?

JACK CAFFERTY, CNN ANCHOR: At the peak of its production years in 1979, General Motors had 600,000 employees. Today, it has 125,000 and it's going to cut 25,000 of those over the next couple of years. The North American automobile industry is in big trouble, under the gun from foreign manufacturers who get an ever-increasing share of the market.

What can be done to save America's car industry? AM@CNN.com.

O'BRIEN: Jack, thanks.

Let's get right to Carol Costello. She's got a look at the headlines this morning.

Good morning.

CAROL COSTELLO, CNN ANCHOR: I do. Good morning. Good morning to all of you.

"Now in the News," at least three people are dead after a suicide car bomb attack north of Baghdad. One other person was injured in the blast.

In the meantime, a major military push under way near Iraq's border with Syria. Dozens of suspected insurgents have been detained so far.

The FBI may soon be able to subpoena records without the approval of a judge or a grand jury. A Senate committee has voted to extend the FBI's powers in terror investigations as part of the Patriot Act renewal bill. The measure is now heading to the full Senate. In the meantime, a House hearing on the Patriot Act is set to get under way in the next hour.

Former President Jimmy Carter wants the U.S. to shut down the Guantanamo Bay prison camp in Cuba. He says alleged abuses there and prisons in Iraq and Afghanistan are an embarrassment and don't mesh with America's desire to promote freedom and democracy around the world. The former president made the comments during a human rights conference in Atlanta.

Actor Macaulay Culkin is expected in court later this morning in Oklahoma. The star of the "Home Alone" series is facing misdemeanor charges related to a drug arrest last September. Culkin was apparently riding in a car where police say they found a half ounce of marijuana and some other drugs.

And a piece of American history going on the British auction block today. And it sold for a record sum.

A 500-year-old map which could be the first to use the word "America" sold for just over $1 million. The drawing might also be the first to depict the Earth as round. The map sold at Christie's auction house in London.

And this map was supposedly made sometime in the 1500s.

HEMMER: That's cool.

O'BRIEN: Pretty cool.

COSTELLO: Yes, because, you know, Christopher Columbus sailed in 1492, but he thought that North America was actually Asia. So this is the first map depicting it as it really was.

HEMMER: Cool stuff.

O'BRIEN: That's neat.

HEMMER: Thank you, Carol.

New details expected within the hour now. This developing story out of northern California. Federal agents believe they have cracked an al Qaeda terror cell in the town of Lodi, about 40 miles south of Sacramento.

Chris Lawrence is live in Lodi.

Let's start with the father, Chris, and the son who were arrested. What led authorities to them and this story?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Bill, the affidavit -- we've read the federal criminal complaint against these men. And the affidavit shows that this investigation began more than a week ago when a man named Hamid Hayat was on a flight from Pakistan to San Francisco.

That flight was diverted when it turned out Hamid's name was on the no-fly list. He was later allowed to enter the country, but he was questioned then by FBI officials.

Now, court documents show that Hamid at first denied, and then later admitted, that he attended an al Qaeda training camp in Pakistan. In court documents, he apparently describes that camp as a place where they were trained to kill Americans. Now, it also goes on to stay that they received instruction in explosives and weapons, including sessions where photos of President Bush were posted and pasted onto targets that the trainees would then be instructed to shoot at.

Court documents show that the primary targets of Hamid were going to be hospitals and grocery stores in northern California. And apparently, his father, Umer Hayat, allegedly paid for his son's flight and also paid him an allowance while he was training.

HEMMER: Chris, also, about the local mosque there, there were two mosque leaders who were detained. What do we know about them?

LAWRENCE: That's right, both of them were detained on immigration violations. They are both imams, or spiritual leaders of a local mosque here in Lodi. They were both working to develop the building behind me as an Islamic charter school for children. But over the weekend, federal agents say they observed both men meeting separately with Umer Hayat, Hamid Hayat's father, and at that point both detained.

Ironically, though, Bill, one of the men, Mohammed Adil Khan (ph), after September 11 here in Lodi, he signed what's known as a declaration of peace with a local rabbi and a Christian minister, basically condemning terrorist activity by religious fanatics.

HEMMER: We should get a press conference, too. We'll point that to our viewers about an hour away, 10:00 Eastern Time, 7:00 there in California. And we'll watch for that.

Chris, thanks. Stay tuned to CNN day and night for the most reliable news about your security -- Soledad.

O'BRIEN: In just about an hour, the two men being held in Aruba in connection with the disappearance of 18-year-old Natalee Holloway are expected to appear before a judge. Holloway has been missing since May 30. She was visiting Aruba with classmates on a senior trip from Alabama.

The suspects -- one of them seen here -- are accused of murder and kidnapping, an attorney says. And I spoke with the defense attorney who is representing one of the men.

(BEGIN VIDEO CLIP)

CHRIS LEJUEZ, DEFENSE ATTORNEY: I did have an opportunity to speak to them. My colleague has also spoken to them on Sunday. I spoke to them on Monday.

They have both denied very categorically knowing Natalee Holloway or ever having any contact with her. They never spoke to her. All they know about her is what they read or saw in the press.

O'BRIEN: They have been formally accused but not formally charged. I believe that's correct. What are the -- what are the accusations of exactly?

LEJUEZ: The accusations are very serious. They are murder, what you would consider in the United States murder one, conspiracy to commit murder, homicide, what you might consider murder two, conspiracy to commit homicide, and also kidnapping, what you would call capital kidnapping, kidnapping with a deadly result.

O'BRIEN: Have the prosecutors told you or filled you in about any of the evidence that they have in this case?

LEJUEZ: They have. What I have seen up to now does not consist of any forensic evidence. We have only statements from certain -- certain witnesses that have stated they have seen certain people who might be the suspects. But they -- none of them have confirmed that they have ever seen Natalee Holloway in the company of any of these two suspects.

(END VIDEO CLIP)

O'BRIEN: I also spoke earlier with Natalee's stepfather, who is still holding out hope for the very best.

(BEGIN VIDEO CLIP)

GEORGE "JUG" TWITTY, NATALEE HOLLOWAY'S STEPFATHER: I do believe Natalee's alive. And every day that goes by even give us more hope that Natalee's alive.

The charges, as far as what the defense attorney is saying, I know nothing about that. The authorities here, our liaison with the police department, has said nothing to us about that.

O'BRIEN: I know you're getting lots of support in the community. Not only your hometown, of course, but in Aruba as well. How do you hold out hope for her safe return after so much time has gone by?

TWITTY: It's difficult. There was a period after there, you know, after about the third day that you think, well, definitely something's happened, that they may find her, you know, somewhere. But as we go further into it, and there's no physical evidence, nobody can provide any evidence of any -- any foul play at the present time, so it give us hope that maybe somebody's holding her somewhere.

(END VIDEO CLIP)

O'BRIEN: Aruba police say they've gotten more than 200 tips in the case. And searchers, including dive teams, are continuing their hunt for Natalee even at this hour -- Bill.

HEMMER: About nine minutes past the hour. A look at California again today.

An Alabama man, now recovering from a gunshot wound he suffered, after leading police on a dramatic freeway chase in southern California, six hours total, all live on television, too. And Peter Viles watched it all in Los Angeles.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT (voice-over): It shut down one of the nation's busiest freeways for hours, a bizarre standoff between a small army of police and armed man threatening to kill himself.

UNIDENTIFIED MALE: There's only two bullets in this car and they're meant for me. So I can't get any clearer than that. Your officers are not in danger.

VILES: The story began in morning rush hour, police pursuing the driver of a white van believing he had attempted to kidnap a woman north of Los Angeles and that he was armed and dangerous.

DEREK BELL, KCAL HELICOPTER REPORTER: The suspect, apparently armed with a .9-millimeter handgun, said that he will not be taken by the police.

VILES: At times, it slowed to a stop in rush hour traffic. At one point, the driver pulls a U-turn on Interstate 10, but the California Highway Patrol was patient and effective, laying a trap with a spiked strip right here to flatten the van's tires.

BELL: Spike strip got it.

VILES: Then another textbook tactic, the so-called pit maneuver, or tactical ramming. CHP did it several times.

BELL: Here it comes. Here it comes. Once again, spinning it around. Oh, look at that. VILES: At that point, a second drama begins. Patrolmen surround the car, then bring in the big guns, literally, three armored vehicles from the sheriff S.W.A.T. team pinning the vehicle against a wall.

CAPT. TOM SPENCER, L.A. COUNTY SHERIFF'S DEPT.: It was ideal because we had the large wall on the opposite side of the vehicle. We didn't have to evacuate anybody. He was totally isolated. And we really took our time and tried to deal with him and resolve the situation in a peaceful manner.

VILES: The standoff lasted three-and-a-half hours and ended with a bang, officers using a poll to push a percussion grenade and tear gas into the car. They also fired a single gunshot at the driver.

Minutes later, a police dog dragged the driver from the vehicle. He was wounded, but alive.

Peter Viles for CNN, Los Angeles.

(END VIDEOTAPE)

HEMMER: We got an update a short time ago from L.A. Police there say the suspect hospitalized today, in stable condition -- Soledad.

O'BRIEN: Chad Myers at the CNN center. He's got a look at the latest forecast for us.

(WEATHER REPORT)

HEMMER: In a moment here, we're joined live in the studio by "Headline Prime's" Nancy Grace, talking about the Jackson trial and her new book. It's called "Objection." Nancy's here in a moment.

O'BRIEN: Also, a medical first. A woman gives birth after an ovarian transplant from her twin sister. It could have huge implications for other women. Dr. Gupta explains.

HEMMER: Also, is America missing an opportunity to try to set a new course for the world? A former member of the president's team with some criticism for the current agenda. He's got a new book out, too. We'll talk to him a bit later this hour when we continue after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

NANCY GRACE, "HEADLINE PRIME": Elizabeth, every time you play that footage of the baby dangling, it gives me angina.

Clearly, only a moron would stay on this side of the boat -- well there -- sorry, Beth, I'm going down.

And today, Michael Jackson made it pretty much on time and wearing his pants. Have you ever allowed your client to go in front of a jury wearing a pair of these?

Well, you're right about this, Jim Moret, no matter how you want to look at it, it's hard to put perfume on a pig.

(END VIDEO CLIP)

O'BRIEN: Hard to put perfume on a pig. Not everybody can say that, but you can watch her on "Court TV" and CNN's "Headline News," as the host of her own show. And as we just saw, Nancy Grace really never at a loss for words or short of her own opinions.

It's something that's echoed in her new book. It's called "Objection: How High Priced Defense Attorneys, Celebrity Defendants and a 24/7 Media Have Hijacked our Criminal Justice System." Nancy Grace with us.

Nice to see you. Thanks for talking with us.

GRACE: Thank you for having me.

O'BRIEN: We'll get to the book in just a moment, because there's a lot of...

GRACE: Oh, yes.

O'BRIEN: ... celebrity cases we're going to talk about. Let's talk about Michael Jackson. Fourteen hours, long time or short time, in your mind?

GRACE: No, I don't think it's a long time. The jury instructions alone were over 100 pages. And if you look at it in real time, they went out on Friday. They had about two hours. From my knowledge of juries, that gave them time to go in, go to the bathroom, everybody order a soft drink, pick a foreperson, and go home.

O'BRIEN: So it's a slow-moving system.

GRACE: Yes, it really is.

O'BRIEN: Natalee Holloway, as you well know, that case, the young lady is still missing. I talked to the man who's defending one of the suspects. He was defending two, both of them, and now he's defending just one.

What do you think that indicates?

GRACE: Interesting. He told me that last night. And immediately, a red flag went up for me, because I've seen lawyers represent co-defendants.

Typically, the problem with that is they will have an inconsistent defense. In other words, they don't have the same story. One has a better story than the other. So there's a chance one will roll on the other. He's going to represent one. They have a different system there, the Dutch system, but they are formally charged with murder.

O'BRIEN: Let's talk about the book a little bit. You tell the story -- and really, it goes through the whole book. I think it's very obviously a formative experience for you, the mugging of your fiance. He was shot in the face several times. That was back in 1980, and he died.

How did that affect the next thing that was going to happen to you?

GRACE: Soledad, I was in school to be a Shakespearean literature professor, which was really my joy. Since then, I don't think I've opened a Shakespearean lit book since. I just have not had the heart for it.

And those weeks and months following Keith's murder, for every crime victim, were a defining time in my life. You said something funny when you intro'd me, that I'm never for a loss for words. You know what? When I was even in law school, I wouldn't even raise my hand.

O'BRIEN: Really?

GRACE: I did not want to be singled out, I didn't want to stand out. I didn't want to speak out.

O'BRIEN: What changed? Because I can't even imagine that. I mean...

GRACE: The first time I had a violent crime victim to represent. I remember my first murder trial. Her name was Mary.

She was a minority female from a housing project in Atlanta. And I knew her only in death, but she taught me what it means to be an advocate, to care about something more than yourself.

O'BRIEN: Your critics say when you bring that on TV and you basically declare people guilty before they've got even gotten into day one of the trial is viciously unfair. I mean, you have a forum. You're on TV in front of a lot of people.

GRACE: Well, they declare them innocent just as much as I do. And if you take a hard look at what's going on, on TV, there are many more defense-oriented anchors and guests and pundits.

So, you know what? Have at it. And what we think really doesn't mean a hill of beans. All that matters is what the jury thinks.

O'BRIEN: Why do you hate defense attorneys?

GRACE: I don't hate them.

O'BRIEN: Well, you severely dislike defense attorneys? GRACE: I just don't want to -- I wouldn't want to live my life that way, standing in front of a jury and BS'ing my way to an acquittal.

O'BRIEN: Doesn't everybody have a right to representation?

GRACE: Yes, I'm not saying they don't. I'm just saying it's just not my cup of tea, period.

O'BRIEN: You liked Johnnie Cochran, though. You worked with him.

GRACE: I do. I do. I still like him.

I just got back from his funeral. I like him very much, and his wife, Dale. They're very dear to me.

You know, he never treated me like a sidekick, which I was. And I knew it.

I was so angry about the Simpson verdict that it took me a long time to realize he was not the one that committed double murder. But I learned from him.

I saw how he even walked into a room. And then I got it, why defense attorneys win cases. They can be charming, charismatic, just like Geragos.

O'BRIEN: It's not about the case?

GRACE: Not always. Not always.

O'BRIEN: It's not about the facts of the case, it's how they walk into a room sometimes?

GRACE: Not always.

O'BRIEN: Twenty-four-hour TV, how do you think it's changing trials?

GRACE: Well...

O'BRIEN: Or, let's even just expand that to intense media scrutiny. I mean, the Michael Jackson case, just one of a...

GRACE: Yes, double-edged sword. I remember at the Peterson trial there was actually a hot dog stand at the corner of the courthouse. I nearly did a black flip from the circus-like atmosphere. But not in that courtroom, oh, no. Delucchi kept it outside.

It's double-edged. Number one, just like everybody, you act a lot different when you're at home by yourself than when you're in front of a camera or people are watching. So I'm happy that judges in particular, and defense lawyers and prosecutors, behave a little better with the camera in the courtroom. Regarding the reality of 24-hour media, the defense has the ability to go on air and pronounce various defense theories. You saw the Peterson theory morph four or five times before it made it to the jury. They were kind of like picking their defense, who really did it. The prosecution is disallowed really from making such statements and impressing potential jurors prior to trial, which simply is not fair.

O'BRIEN: The book is called "Objection" by Nancy Grace.

GRACE: You said it correctly, "Objection." Hey, a lot of the money goes to the National Center for Missing and Exploited Children.

O'BRIEN: Oh, that's great. And I know you wrote it with Diane Clehane.

GRACE: Diane Clehane.

O'BRIEN: Terrific writer.

GRACE: She cracked the whip on me.

O'BRIEN: I bet she did. Thanks. Nice to see you, Nancy. Thanks for coming by.

GRACE: Thank you, Soledad.

O'BRIEN: Bill.

HEMMER: See you, friend.

Let's get a break here in a moment.

Dr. Gupta's back. More on this medical milestone. A woman giving birth after an ovarian tissue transplant. The doctor who performed the procedure calls it a miracle. Could it help other women in the end? We'll talk about that with Sanjay when we continue in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: All right. Welcome back. "Question of the Day" with Jack.

CAFFERTY: Thanks, Bill.

GM announced it's going to cut 25,000 jobs over the next couple of years. At its peak it 1979, they had 600,000 workers. Today, they have a paltry 125,000.

The company said healthcare costs add $1,400 to the price of every car and truck they build. And it's not just GM that's in trouble. Ford and Chrysler are also watching as foreign automakers capture an ever-increasing share of the market in North America.

The question is, what can be done to save America's automotive industry?

"The industry has to turn its back," Andrew writes in Michigan, "on fossil fuels and not wait for the oil-interest-driven Bush-Cheney administration to realize conservation and getting away from fossil fuels is actually good for the country. Alternative renewable energy and fuel sources should be a top priority."

Craig in Pennsylvania, "GM has no inalienable right to the largest market share. Reflect on the Fortune 500 list from 1980 versus today across all industries."

Robert in New Jersey, "Last year, June 4, the news on CNN announced GM was making a $3 billion investment in China. Today, the reduction in GM's labor force comes as no surprise."

And Michelle in New York writes: "The American auto industry has, since its inception, persistently ignored changes in the economy and culture over the last century. It has treated the buying public like idiots, expecting a snappy wave of the American flag to compensate for poor design."

O'BRIEN: Interesting feedback.

HEMMER: And Robert did his research, too.

O'BRIEN: Yes, he sure did.

HEMMER: Last year.

O'BRIEN: All right. Jack, thanks.

There's much more AMERICAN MORNING still to come.

(BEGIN VIDEOTAPE)

O'BRIEN (voice-over): Ahead on "90-Second Pop," Russell Crowe arrested after a run-in with a hotel concierge. Can the "Cinderella Man" do damage control on "Letterman" tonight?

Plus, three big CD releases this week. Are they must-haves?

That's Later on AMERICAN MORNING.

(END VIDEOTAPE)

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