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CNN Live Today

Hostage Minder?; Bush G8 Agenda; Aruba Search

Aired June 30, 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: It's a story we told about just a few weeks ago, evidence that suggests that certain Ford vehicles may be prone to catch fire while parked and turned off. There's a new development in that story, and that's coming up.
And just days away from what he says will be his last right in the Tour de France. I'll be speaking with Lance Armstrong's mother as the second hour of CNN LIVE TODAY begins right now.

Let's take look at what's happening ""Now in the News."

Did Iran's new president-elect play a role in the hostage ordeal at the American embassy 25 years ago? Several of the former hostages say the president-elect was one of their captors. Iranian officials deny he was part of the '79 takeover of the embassy in Tehran. We'll have a live report just ahead.

Another mega-merger in the banking and credit card industry. Bank of America today announcing it will buy credit card giant MBNA for $35 billion. The deal would make Bank of America the country's largest credit card issuer. The company says the merger will mean the loss of 6,000 jobs.

Time Incorporated says it will turn over subpoenaed records to keep one of its reporters from going to jail. But the company says it strongly disagrees with the court order demanding those documents. Reporter Matt Cooper faced contempt charges for refusing to reveal controversial sources. The case stemmed from the leak of a CIA operative's name.

Fed Chairman Alan Greenspan is likely to stay the course on interest rates today. Analysts expecting the Federal Reserve to raise rates by another quarter of a point. Greenspan recently told Congress the U.S. economy is on reasonably firm footing and inflation is under control. The Fed announcement is expected at about 2:15 Eastern.

And now CNN.com is offering you a whole new way to get the headlines. Just log on to our Web site, click on "Watch" to check out the most popular stories, everything from politics and sports to entertainment. Here's the best part, it's free at CNN.com.

Good morning. On CNN LIVE TODAY, let's go ahead and check the time. 8:00 a.m. in Phoenix, Arizona.; 5:00 p.m. in Rome, Italy; 7:30 p.m. in Tehran, Iran.

From the CNN Center in Atlanta, good morning once again. I'm Daryn Kagan. First up this hour, a stunning accusation today about the new president-elect of Iran. And if it's true, it could deepen the diplomatic gulf between Tehran and Washington.

Several Americans who were held hostage in Iran between 1979 and 1981 say the politician was one of their captors. One former hostage says, "There is no question about it."

They're talking about the new president of Iran. In all fairness, another is quoted as saying he has no memory of the man. And Iranian officials are denying that the president-elect was part of the takeover of the embassy.

Mahmoud Ahmadinejad is portrayed as an ultra hard-liner. He was elected in Friday's runoff. He would have been 23 in 1979. That would have been about the right age to be part of the radical student group that seized the U.S. embassy.

(BEGIN VIDEO CLIP)

DON SHARER, FMR. AMERICAN HOSTAGE: As soon as I saw the face it rang a lot of bells to me. And it was a recent picture. But he still looked like a man, take 20 years off of him, he was there.

He was there. He was there in the background, more like an adviser. And one other incident, he just called Colonel Scott and myself "pigs" and "dogs," and we deserved to be locked up forever. So when you're placed in a life-threatening situation of that nature, you just -- you remember those things.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

WILLIAM DAUGHERTY, FMR. AMERICAN HOSTAGE: Ahmadinejad's own personal Web site listed him as one of the organizers of the -- of the embassy takeover. And it's a little hard I think for his press secretary now to say he wasn't involved when, by his own words, perhaps, he acknowledged his presence.

(END VIDEO CLIP)

KAGAN: The Bush administration says it's looking into the accusation. Already, there is a flat denial coming from Iran, as you were hearing in those sound bites.

Let's talk to Chief International Correspondent Christiane Amanpour in London today.

Christiane, when you look at those two pictures side by side from the '70s and today, it really does look like the same man.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: To be honest, for me it's difficult. But it's not without the realm of possibility that he was involved. I think, frankly, all those guys look pretty much the same with bearded, hard-line, revolutionary faces from back then.

However, as one of those sound bites indicated, his own Web site has talked about his involvement at that time, even though now official denials are coming out of Iran. But when I say it's not impossible that this could be the fact, that's because many of the hostage-takers of the 1979 period have, in the interim, moved into positions of either power or other establishment roles.

Ahmadinejad happens to be a hard-liner. And so if it was true that he was involved then, you know, it has a very negative connotation for now.

But on the other hand, Mohammad Khatami, the reformist president who was there for years, his vice president, the first woman vice president in Iran, was also one of the hostage-takers. She was the spokesman.

If you remember, Masuma Ibtikor was one of the spokesmen during that hostage period, one of the student spokespeople. And others that I have spoken to in the intervening years have gone into roles in municipal government, elsewhere. And also, some have gone into reformist news publications and become proponents of reform.

So that, I think, sort of sums up the kind of situation where it would not be unlikely that somebody like Ahmadinejad could have taken part in that terrible affair of 1979. And I think, more importantly, it's not what he did, but what he's saying now that is going to make people worried.

What will he do in terms of nuclear negotiations with the west over Iran's nuclear plan? What will he do in terms of restricting or otherwise the personal freedoms, some of the slight personal freedoms, that Iranians have been able to get, particularly women, over the last eight years under the reformist president?

So there are many, many questions to really keep an eye on what's going on in Iran. And particularly with the new president-elect.

And I know that even during the first round of elections, when I was there on June 17, already people were mentioning his roles in the past. And Iranian analysts, too, are saying that it's very possible he could have been one of the hostage-takers or involved in that situation.

KAGAN: Well, it's certainly an interesting link.

Also, and speaking of interesting, interesting things coming up there in London. The G8 summit, Tony Blair will be hosting the other leaders. I understand you had a chance to sit down and talk to the prime minister, looking forward to that summit.

AMANPOUR: We did. You know, he's put Africa poverty on the top of his agenda, making poverty history. The issue is not raising all of Africa, those who are poor in Africa, into suddenly overnight middle class status, but trying to do something to alleviate the kind of literally killer poverty, the poverty that kills Africans, the extreme poverty, where Africans are living on less than $1 a day and simply struggle between life and death every single day.

That's the kind of target that is trying to be said at the G8 summit, trying to halve that kind of killer poverty by 2015 and try to eradicate it totally by the year 2025. Again, we're talking about killer poverty. And Prime Minister Blair said that there's a real moral imperative to try to address that, that it can be done. There are simple solutions and minimal investments by rich nations to make that happen.

He talked to us about what he expects from his partner, President Bush. Bush, as you know, has not been able to -- has been unwilling to raise the percentage of what American government gives in foreign aid from what it is now, which is 10 cents on every $100, to 70 cents on every $100.

The other developed countries are saying that they will do that by 2015, including Britain. So Prime Minister Blair welcomes some of the extra money that President Bush is pledging, and has said this when I asked him what he would ask of President Bush...

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: What I would ask him to do and hope that he will be able to do is increase significantly the amount of aid that's going to Africa. I mean, he's doubled (ph) it already. I would like to see a -- effectively doubling of the amount of money that America is paying, because I think that tied to the proper ways of using that money, to things like education and dealing with killer diseases, to water sanitation and infrastructure, the proof is there, it can make a real difference.

(END VIDEO CLIP)

AMANPOUR: And that is what many of the people who are involved in this project believe, that it can make a difference. Again, we're talking about the poorest of the very poor, those who can die any day from any minimal disease, mosquito bite, or whatever, because they simply don't have the resources to survive. Many of them are malnourished.

One of the issues, of course, is corruption in some African governments. But again, Prime Minister Blair said you cannot hold the poorest of the poor, people who are dying every day -- and there are six million of them dying in Africa every day of extreme poverty -- you cannot hold them accountable for the malfeasance of certain of their governments. Yes, you have to insist on good governments and reform, but you also must help those who bear no responsibility and who are just dying as a result of poverty.

KAGAN: It's a big story. You'll be covering it for us. Christiane Amanpour, live from London. Christiane, thank you.

President Bush looking ahead to next week's G8 summit. He wrapped up his speech last hour, outlying his agenda for the gathering of world leaders. Our Elaine Quijano is at the White House with that part of the story. Elaine, good morning once again.

ELAINE QUIJANO, CNN CORRESPONDENT: And good morning to you, Daryn.

Amidst those calls for the Bush administration to increase the amount of aid to African countries, President Bush today -- in fact, just a short time ago -- outlined some new initiatives in dealing with Africa. But the president during his speech before he announced those proposals made quite clear that he believes African governments have obligations, that they should have an active, not a passive role in managing foreign aid, and in helping their citizens to overcome poverty.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our greatest challenge is to get beyond empty symbolism and discredited policies and match our good intentions with good results. First, overcoming extreme poverty requires partnership, not paternalism. Economic development is not something we do for countries. It is something they achieve with us.

(END VIDEO CLIP)

QUIJANO: So the president also today essentially saying that it is not the quantity of foreign aid, but the quality of how it is managed that makes a difference.

Now, the president, as I mentioned, announced several proposals. One dealing with promoting education in Africa. Another dealing with legal protections of women against violence and abuse. And finally, the last initiative on malaria.

The president announced an initiative to spend more than $1.2 billion over the next five year to fight the disease, a disease which is transmitted by mosquitoes. The money would go to things like spraying, giving out insecticide-treated nets, as well as providing drugs to help treat the disease.

The president saying that next week he will urge the other G8 countries to help try to fight and cut down drastically the number of malaria victims who are killed by the disease. But the Bush administration again making those announcements today, amid calls that it should increase aid to those African nations -- Daryn.

KAGAN: Elaine Quijano, live from the White House. Elaine, thank you.

Now a follow-up for you to our exclusive story about a small part in as many as 16 million vehicles that could start a fire, even when your vehicle is turned off. Our investigative correspondent, Drew Griffin, reports one of those vehicles may have started a fire that took the life of an Iowa grandmother.

Plus, has mad cow disease made it to our borders? The latest on the deadly disease in our "Daily Dose" segment.

And this weekend is the beginning of the biggest bike race of the year, the Tour de France. Lance Armstrong will be there, going for his seventh title. We'll speak to his mom Linda later in the show about her son's race and his life after professional cycling.

(COMMERCIAL BREAK)

KAGAN: Fire crews in Arizona are watching for hot spots from a 400-acre blaze near Buckeye. It's one of nearly two dozen wildfires burning in the western U.S. and Alaska.

Another fire in central Arizona has grown to more than 172,000 acres. Crews are trying to keep flames from spreading to three small communities. No homes are in immediate danger.

It is a scorcher in Phoenix, but it's that time of year, when it usually is. Here's Rob Marciano.

(WEATHER REPORT)

KAGAN: Natalee Holloway is still missing in Aruba. One of the former suspects in her disappearance is out of jail now and speaking out. Hear what he has to say about the case and what led to his arrest.

And we have a follow-up to an exclusive story we reported on earlier this month. It centers around a small part in as many as 16 million vehicles that could start a fire, even when the vehicle is turned off. When we return, our investigative correspondent, Drew Griffin, reports one of those vehicles may have started a deadly fire.

(COMMERCIAL BREAK)

KAGAN: Talking about missing children now. Searchers on the streets today looking for this missing boy in Oregon. Four-year-old Matal Sanchez (ph) hasn't been seen since Wednesday afternoon. His family thought the boy was with his grandmother, but when she got home she said she didn't have the child. Matal's (ph) father doesn't live at home. Police say his whereabouts have been accounted for.

Well, if you don't have a body, there is no case. That is what the Aruba chief prosecutor says and what she told a judge his son -- what a judge told his son and two friends about the Natalee Holloway investigation.

Holloway is the Alabama teenager missing since May 30. The prosecutor says the judge told authorities he was only speaking in general terms. His son and two friends are being held in the case.

Meanwhile, one of the people who was arrested, and later released, spoke with CNN's Paula Zahn.

(BEGIN VIDEO CLIP)

STEVE CROES, FORMER SUSPECT: Well, first of all, good night, everybody, over there. God, I end up in jail just for a stupid mistake that I did. And, yes, that's -- that's about it.

PAULA ZAHN, HOST, "PAULA ZAHN NOW": What was the mistake you made?

CROES: Lied to the cops.

ZAHN: And what did you tell them?

CROES: I just told them that I witnessed when they dropped the girl at the hotel. But that wasn't true, because I didn't even know these guys.

ZAHN: Why would you make that up, Steve?

CROES: You know, I -- I don't know. Normally, I'm not, like, that stupid, stupid person. I'm always, like -- in the group of the guys that we go out with and stuff like that, I'm the only one that gives them the good advice, like, please don't do this, or don't do that.

But this time, I did a stupid mistake. And I got into jail for 10 --10 days.

(END VIDEO CLIP)

KAGAN: Relatives of Natalee Holloway have started a letter writing campaign seeking more help from the government of Holland. Family friend Sony Tillman (ph) says that they are grateful for the help so far and they want it to continue.

Some of the 27 Texas volunteers searching for Holloway are coming back here to the states. After five full days, the team has come up empty-handed. The rest of the group will continue its efforts today.

CNN's Alex Quade has the story that some of the volunteers have some very personal reasons for being there.

(BEGIN VIDEOTAPE)

ALEX QUADE, CNN CORRESPONDENT (voice-over): Each day, the search for Natalee Holloway begins with prayers.

DARRYL PHILLIPS, VOLUNTEER: Father, we are going to -- out there to search Natalee. God, we pray, Father, that you will be with us.

QUADE: Darryl Phillips provides inspiration to the Texas volunteers looking for the missing teen.

TIM MILLER, FOUNDER, TEXAS EQUUSEARCH: He knows what it's likes to have somebody missing, too. And he wishes, at that time, there would have been somebody to help him out. But instead of holding on to that bitterness and that, he's out here helping other people.

QUADE: Darryl Phillips has not shared his story with anyone, except his fellow searchers. Now he shares it with us, while searching for Natalee Holloway. PHILLIPS: Her name is Angela Phillips. She went missing on September 16, 1986. And I don't know where she is.

QUADE: He's been searching for his sister Angela for 19 years. This worn-out photo is the only one his family has of her, the rest destroyed in a house fire.

PHILLIPS: I think about her every time I'm out in the field. I think about her. I can't get her out of my mind. It's like you took a flower away from the rose garden.

QUADE (on camera): Why would you be doing this if you've got a missing loved one that you still need to find?

PHILLIPS: Well, one of the reasons is, there's always hope. Her disappearance has not been as long as my sister's. Natalee needs to be with her family. She needs to be with her family.

QUADE (voice-over): As he searches for Natalee Holloway, he comes across a lone grave by the sea.

PHILLIPS: It reminds me of my sister, that -- some day that hopefully someone or myself will run across her, so she can have a proper burial, which she deserves.

QUADE: Phillips and the other volunteers focus on finding Natalee, ignoring the minor injuries, the danger of combing through a smoldering garbage dump, and the heat.

LINDA ALLISON, AUNT OF NATALEE HOLLOWAY: In 90-something degree weather, it is difficult.

QUADE: Natalee's aunt, Linda Allison, knows the hardships Darryl Phillips and the others are facing on their behalf.

ALLISON: Cacti, thorns, a lot of rocks, a lot of large boulders, hard to -- hard to maneuver around in some of the areas.

QUADE: She searched in vain for Natalee before the Texas team arrived.

ALLISON: The island is huge when you're looking for a person. It's a needle in a haystack.

QUADE: Just one of the reasons the family asked for the volunteers' help and one of the reasons why Darryl Phillips agreed.

PHILLIPS: They deserve to have some closure. And she deserves -- Natalee deserves to be with her family.

QUADE (on camera): Because you don't want the Holloways to have to experience the not knowing.

PHILLIPS: The not knowing, and go through 19, 20 years of not know where their daughter is. It's not fair to them. It's not fair to any family. QUADE: And this is something that your family is still dealing with.

PHILLIPS: For almost 19 years this coming September. And it's not easy. But me being out here, it's not about my family. It's about Natalee's family, and that they can at least have some kind of peace of mind.

Father, we pray for strength for Natalee's family, God, that...

QUADE (voice-over): The search day ends with another prayer.

PHILLIPS: We pray, God, that you would be with us tonight, God. Give us all strength.

QUADE: Until this moment, Linda Allison and the rest of Natalee's family had not met Darryl Phillips, knew nothing about his own tragedy.

(on camera): He said to us he's out here because he doesn't want you to all go through the not knowing.

ALLISON: Oh, I think it's awesome. I can't believe that he's here with us looking for Natalee. I know that 19 years, I hope that's not what we have to look forward to.

PHILLIPS: It's very important to me to see other families have a peace of mind and not having to wait so long.

QUADE: Alex Quade, CNN, Aruba.

(END VIDEOTAPE)

KAGAN: And now we have a follow-up for you on a story we reported on earlier this month. The story centers around a small part in as many as 16 million vehicles that could start a fire, even when the vehicle is turned off. When we come back, our investigative correspondent, Drew Griffin, reports one of those vehicles may have started a fire that took the life of an Iowa grandmother.

(BEGIN VIDEO CLIP)

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: You saw the front of that pickup truck burning. That's what you saw.

UNIDENTIFIED MALE: You bet you. She was burning.

(END VIDEO CLIP)

KAGAN: We'll have details just ahead. Stay with us.

(COMMERCIAL BREAK)

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