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Israeli Forces Facing Off With Jewish Protesters in Gaza Strip; Tainted Confession?

Aired June 30, 2005 - 09:31   ET

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

MILES O'BRIEN, CNN ANCHOR: Just about half past the hour on this AMERICAN MORNING. A developing story in the Middle East. As we speak, Israeli troops raiding a hotel in Gaza to end a standoff with right-wing protesters there.
S. O'BRIEN: These are the protesters who are pretty angry about a plant to close Jewish settlements. We're going to bring you a live report in just a few minutes.

M. O'BRIEN: Dramatic pictures there.

Carol Costello here with the headlines.

Carol, good morning.

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

Now in the news, President Bush is looking ahead to the upcoming G-8 Summit. The president is giving a preview of his agenda there, which is expected to focus on aid to Africa. The G-8 plan includes erasing billions of dollars in debt owed by some of the world's poorest countries. Next week's meeting in Scotland is being hosted by Britain's Prime Minister Tony Blair.

New developments in a story involving a reporter contempt case. Time Incorporated now says it will turn over subpoenaed notes from journalist Matt Cooper regarding the leak of a CIA agent's identity, even though it strongly disagrees with the court order.

(BEGIN VIDEO CLIP)

NORMAN PEARLSTINE, EDITOR-IN-CHIEF, TIME INC.: I think it's a terrible case. I wish the court had taken our appeal, but given that they did not, we're not above the law, and the law was clear that I think we had no choice but to turn over the information.

(END VIDEO CLIP)

COSTELLO: In the meantime, "New York Times" reporter Judith Miller has no comment right now. A federal judge was scheduled to decide next week whether Cooper and Miller would have to go to jail.

The U.S. military now says small arms and rocket fire likely brought down a helicopter near the Afghan/Pakistani border. Coalition troops have now secured the area around that Chinook helicopter. It's similar to the one flying here. The families of the 17 crew members have been notified that their loved ones were onboard.

A CNN Security Watch now, another scare in Washington. Authorities say a small private plane ventured into restricted airspace, prompting a brief evacuation. President Bush was temporarily whisked away to another location. The pilot said he entered the restricted space to avoid bad weather. The entire ordeal lasted just minutes.

And researchers in Japan are studying tsunami waves by making some of their own. The eight-foot waves are believed to be the tallest ones ever made by man. Actual tsunami waves are closer to 30 feet. Researchers say by observing the manmade tsunami waves, though. They can more accurately study Mother Nature's destructive power, and hopefully find ways around it. That's pretty cool.

M. O'BRIEN: Pretty impressive, yes.

Thank you, Carol. Appreciate it.

S. O'BRIEN: Carol, thanks.

Well, Israeli forces are facing off with Jewish protesters in the Gaza Strip today. Israel has 46 days to evacuate settlements there, and turn over control to Palestinians.

Guy Raz live in Jerusalem this morning.

Guy, good morning to you.

What's exactly happening now with the protesters?

GUY RAZ, CNN CORRESPONDENT: Good morning Soledad. Israelis simply haven't witnessed this level of internecine violence in recent memory. The battle now between opponents of the government's plan to pull out all its settlers from the occupied Gaza Strip, and the soldiers who will be evacuating those settlers is reaching unprecedented levels.

Now, earlier today the Israeli army declared all of the Gaza settlements a closed military zone, essentially making it off limits to all non-residents. The idea to prevent ultranationalist Israeli Jews from entering those areas.

Now, just a few hours ago Israeli police commandos stormed an abandoned beachside hotel in Gaza. For several months it was a settlers' stronghold, occupied by ultranationalists opposed to the Gaza pullout plan.

Meanwhile, the Israeli government is very concerned about these latest developments. The prime minister essentially lashing out at these militant nationalists, saying that his government is prepared to use an iron fist to restore order in parts of the country. Mr. Sharon referring to those nationalists as lawless gangs who are now engaged in a rein of terror -- Soledad.

S. O'BRIEN: And, guy, as you point out, 46 days until that withdraw from Gaza.

Guy Raz for us in Jerusalem this morning. Guy, thank you -- Miles.

M. O'BRIEN: No body, no case. That's what the chief prosecutor in the Natalee Holloway case said a former suspect said to three other suspects still in custody.

Chris Lawrence live now in Palm Beach, Aruba.

Chris, what did prosecutors say?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, what prosecutors are saying, what they heard from one of the suspect is, that one of the suspects said that Judge Paul Van Der Sloot talked to them and coached them in the days leading up to their arrest, coaches his son and the two others brothers.

Now Paul Van Der Sloot is a judge, so he does know the law, and he, himself, spent three days in jail before a judge ordered him to be released on Sunday. The same judge also ordered the release of another man named Steve Croes. A lot of people have wondered, what is his connection to the case. Well, it turns out Croes said he had almost no connection to this case whatsoever, and spent 10 days in jail when he didn't even have to.

Well, it turns out, Croes said he had almost no connection to this case whatsoever, and spent 10 days in jail when he didn't even have to.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): The three men suspected in the disappearance of Natalee Holloway would probably do anything to get out of jail. In a bizarre twist, Steve Croes did just about everything possible to get in.

STEVE CROES, FMR. SUSPECT: It's something that I -- a mistake that I did.

LAWRENCE: Croes worked as a deejay on a local party boat. He was already pretty well known, but his name got attached to Aruba's most notorious case for the most unlikely reason.

CROES: I heard, like, this guy talking on the phone at the Internet cafe, so my story was, like, almost exactly as his.

LAWRENCE: That guy was Depak Kalpoe, and his story went like this: He and his brother were hanging out with their friend Joran Van Der Sloot and an American girl. At the end of the night, they drove her back to the Holiday Inn. Steve Croes went back to the police and said, I saw them dropped her off at the hotel.

CROES: That's why they thought maybe I was in it. But everything that I knew I just heard from his voice when he was talking on the phone. LAWRENCE: And it wasn't true, the Kalpoes admitted they dropped off Natalee and Joran at a beach down the road. Steve Croes lied for no reason.

BETH HOLLOWAY TWITTY, NATALEE HOLLOWAY'S MOTHER: I think that's sad for him if that's how it truly happened.

LAWRENCE: Natalee's mother wonders how much time investigators lost checking out his worthless story.

TWITTY: You know, I just don't want to waste any more energy or focus on the wrong individuals.

LAWRENCE: Sometimes Croes doesn't seem phased by his time in jail.

CROES: I can tell you I had the best coffee in there the day I was arrested.

LAWRENCE: Then he thinks what he put his family through, including his mother and his young son.

CROES: I really, how do you say, I wish I didn't do that, because right now, you know, I was in prison for 10 days.

LAWRENCE: Right up until this week, when a judge ruled there is no evidence against him.

(END VIDEOTAPE)

LAWRENCE: Croes told me that he lied because he thought he was helping someone stay out of trouble. In this case, Depak Kalpoe. He said, quote, if you were sitting in that cafe and heard the guy, you'd think he was telling the truth, too -- Miles.

M. O'BRIEN: Chris Lawrence in Aruba, thanks -- Soledad.

S. O'BRIEN: Prosecutors in Florida may have thought that they had an airtight case against confessed child killer John Couey, but as CNN's Susan Candiotti tells us, a big part of their case could be in big trouble.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT: An alleged confession from a man who in chilling detail describes how he buried alive Jessica Lunsford might never be heard by a jury. The potential problem? These words from John Couey.

JOHN COUEY: I want a lawyer.

CANDIOTTI: Not just once, but again Couey says.

COUEY: I just want to talk to a lawyer.

CANDIOTTI: But at least seven times during questioning, Couey's voice recorded by investigators, the tapes released by the court Wednesday, Couey asked for an attorney.

COUEY: I want a lawyer here present. I want to talk to a lawyer, because I'm being -- people trying to accuse me of something I didn't do. I didn't do it. I ain't...

CANDIOTTI: The day before police say John Couey admitted he kidnapped, raped and murdered 9-year-old Jessica Lunsford, he was interviewed by Citrus County, Florida detectives. According to that interview, taped for evidence, he denied knowing anything about Jessica. In Couey's words, "I swear to God I had -- I mean, I don't know where she is, period. But When investigators suggested a lie- detector test, Couey asked for an attorney. In his words, "I want to talk to a lawyer first."

Couey's public defender isn't talking publicly, but the suspect's request, say other criminal defense lawyers, should have stopped questioning immediately.

BRUCE FLEISHER, CRIMINAL DEFENSE ATTY: The judge has to look at the totality of the circumstances to make sure that everything is freely and voluntarily given, and in this case that's suspect.

CANDIOTTI: Even after he asked for a lawyer, the questioning went on and on. The next day, law-enforcement sources say, Couey was read his rights and willingly took a polygraph in which he confessed, then made a statement to investigators. A former federal prosecutor says that could save police from a possible major blunder.

KENDALL COFFEY, FMR. U.S. ATTY.: It's ultimately a question of whether it's voluntary, but if a defendant is Mirandized three times before the interview begins, three times a chance to remain silent and chooses to speak, three strikes, he's out and that confession comes in.

CANDIOTTI: The sheriff would not directly answer questions about why the questioning continued after Couey asked for a lawyer.

A spokesman for the sheriff calls the case against Couey, quote, "rock solid." Other sources suggest there's enough blood and DNA evidence to convict with or without Couey's alleged confession.

Susan Candiotti, CNN, Miami.

(END VIDEOTAPE)

S. O'BRIEN: Terrible news in that story, really is.

We want to take you now to Washington, D.C. President Bush is making remarks in Freer Gallery Museum in Washington, D.C.. And the focus of his comments are on the G8 and U.S. aid to Africa. Let's listen in to what the president is saying.

(JOINED IN PROGRESS)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... thank you for your service to our country. I want to thank the members of the diplomatic corps who have joined us. I appreciate your coming. I particularly want to say thanks to the ambassadors from the African nations who are here. I visited your beautiful and hopeful continent and next month, Laura will travel to South Africa, Tanzania and Rwanda, to highlight the partnership we're building on education, the empowerment of women and the fight against HIV/AIDS. She's a really good ambassador for our country.

I want to appreciate our secretary of state who's joined us today, Condoleezza Rice. I'm proud you're here, thanks for joining us. You're doing a fabulous job, by the way.

Ambassador Rob Portman, the U.S. Trade Representative, is with us. Ambassador, thanks for joining us. Andrew Natsios, administrator of USAID, is with us. Good to see you, Andrew. Thanks for coming. Randy Tobias, who is U.S. Global AIDS coordinator, Ambassador Randy Tobias thank you for joining us, Mr. Ambassador. Appreciate your noble work. I want...

S. O'BRIEN: President Bush naming some of the names of the folks who are there to listen to his remarks about Africa. He is in the Meyer Auditorium at the Freer Gallery in Washington, D.C. The focus of his discussions today, Africa and the G8 in 2005. Also, be talking a little bit about counterterrorism and non-proliferation as well. We're going to get details on the president and monitor his remarks just ahead.

A short break first. We'll see in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Let's take you back to Washington, D.C., where President Bush is talking a little bit about the war on terror, in his remarks about the G8 Summit. Let's listen.

BUSH: Peoples of Africa are opposing these challenges with courage and determination and we will stand beside them. Yet the continent of Africa is so much more than the sum of its problems. After years of colonization and Marxism and racism, Africa is on the threshold of great advances.

Economic growth is at the highest level in eight years. Leaders have emerged from South Africa to Nigeria to Kenya to broker an end to old conflicts. Last year alone, five nations south of the Sahara held successful democratic elections. All who live in Africa can be certain, as you seize this moment of opportunity, America will be your partner and your friend.

In the developing world, we have an unprecedented opportunity to help other nations achieve historic victories over extreme poverty, with policies and approaches that are tested and proven. These victories will require new resources. The United States has tripled overseas development aid to Africa during my presidency, and we're making a strong commitment for the future. Between 2004 and 2010, I propose to double aid to Africa once again, with the primary focus on helping reforming countries. Yet new resources are not enough. We need new thinking, by all nations. 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.

Their leaders, by definition, must play the main role as agents of reform and progress, instead of passive recipients of money. Over the decades, we've learned that without economic and social freedom, without the rule of law and effective, honest government, international aid has little impact or value. But where there's freedom and the rule of law, every dollar of aid, trade, charitable giving and foreign and local investment can rapidly improve people's lives.

S. O'BRIEN: President Bush talking about investment, international investment in Africa. That, of course, is going to be focus of the members of the G8, the group of eight, when they meet on July 5th through 8th to discuss world issues. The primary focus, though, for that group will be Africa and poverty there, as well.

The president talking about the American commitment. Also said, it's not just resources that are needed, it's a new way of thinking. It's time to match good intentions, he said, with some good results.

Short break. We're back in just a moment. Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: So, what is Richard Scrushy going to do now? The former CEO of Healthsouth found not guilty on 36 counts. Will he go back to his old job? Unlikely, right? Andy Serwer is here with that and much more.

ANDY SERWER, "FORTUNE" MAGAZINE": I don't think there's a chance in you know where that he's going back to his old job at Healthsouth.

Let's talk about the markets first of all this morning, Miles. We got a bit of a rally on Wall Street in early trading. Here's the Big Board. We're up 36 points, and the Dow is at 10410. You can see there.

Big merger to tell you about this morning. Bank of America, one of the nation's largest banks, is buying one of the nation's largest credit card companies, MBNA, for $35 billion. Bank of America is a player in the credit card business. This makes them a much bigger player. MBNA stock a huge winner this morning, up 25 percent to $26. Oh, if we only owned that one.

M. O'BRIEN: If only we had. How many times do we say that?

SERWER: Yes, a lot.

Let's talk about Healthsouth, because now that Richard Scrushy is acquitted, what next? One thing that's not going to happen, according to the Healthsouth CEO, is he's not going to rejoin the company. He's not going to become CEO of Healthsouth. He is still a board member, but there is no chance.

M. O'BRIEN: But he was invited to the meetings.

SERWER: No. Well, yes, that's correct. And it's also possible that prosecutors will bring him up on other charges.

Interesting note in "USA Today," they spoke to one juror who was replaced, remember, had medical problems. Apparently this gentleman had migraines. He thought that Scrushy was guilty. Maybe the jury deliberations kept making his headaches worse, and worse and worse, especially when a majority of other jurors agree disagreed with him. Eventually he was taken off.

M. O'BRIEN: Did he check himself into a Healthsouth facility?

SERWER: Very good question. Yes, I don't think he'll be terribly welcomed. Maybe he will e since Scrushy is out.

M. O'BRIEN: Maybe so. I don't know. Who knows? All right, very interesting. Political career, maybe? evangelism. You never know.

SERWER: Yes, we'll have to see.

M. O'BRIEN: You know, this country loves a comeback. I've heard that -- O'Brien.

SERWER: Yes, well, he's right for one.

S. O'BRIEN: A statement now to tell you guys about, from Arthur Sulzberger Jr., the publisher of "The New York Times." He's also the chairman of the New York Times Company. Here's what he said: "We are deeply disappointed by Time Inc.'s decision to deliver the subpoenaed records. We faced similar pressures back in 1978 when both our reporter, Myron Farber, and Times Company were held in contempt of court for refusing to provide the names of confidential sources."

The statement goes on to say that Mr. Farber serve 40 days in jail, and the company was forced to pay significant fines. They say they're now focused on their reporter Judith Miller and supporting her and her family as well during this difficult time.

So obviously Very much disagreeing with the statements we heard a little bit earlier this morning from Norman Pearlstine of Time Inc., who says, "Editors are not above the law, and will be turning over subpoenaed records to the court." Matt Cooper, the "Time" journalist who was really along with Judith Miller at the center of this case said he hoped that the company would not do that. They have seven days now before they are sentenced in this case, those two journalists.

More on that is ahead this morning. A short break. We're back in a moment.

(COMMERCIAL BREAK)

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