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ANDERSON COOPER 360 DEGREES

CIA Leak Investigation; Aruba Case Update; Idaho Investigation Continues; Wildlife Smuggling

Aired July 6, 2005 - 19:00   ET

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


RUDI BAKHTIAR, CNN ANCHOR: Thank you, Kitty.
Good evening, everyone. One reporter is headed to jail, the other is prepared to name his source. It's 7:00 p.m. on the East Coast, 4:00 on the West. 360 starts right now.

(BEGIN VIDEO CLIP)

BAKHTIAR: One journalist jailed, another walks free after agreeing to give up his confidential source. Tonight, who is the person that leaked the name of CIA agent Valerie Plame?

A convicted sex offender charged again with an unthinkable crime against young children. Just why was this predator allowed to roam the streets a free man?

Plus, the mystery of Joseph Duncan's crimes. Why did he choose the home of little Shasta and Dylan Groene, and did he act alone?

And our special series, "Summer Survival." Tonight, a magic ingredient in sunscreen that could help you look younger. It's been used for more than a decade in Europe, so why can't you have it?

ANNOUNCER: Live from the CNN Broadcast Center in New York, this is ANDERSON COOPER 360.

(END VIDEO CLIP)

BAKHTIAR: Good evening, everyone. I'm Rudi Bakhtiar sitting in for Anderson.

Here's the big question tonight: Will the Valerie Plame case produce another Deep Throat? Will the leak of her name be traced back to the White House the way the Watergate burglars eventually were?

One reporter is in jail tonight and another just barely avoided that fate by agreeing to do something he long insisted he would not do, and that is testify before a grand jury about a confidential source after getting that source's permission to do that.

How did we get to this point? How did what seemed a minor inside- the-Beltway matter just a couple of years ago -- the public naming of a CIA agent -- become a wildly swinging double-edged sword that threatens to wound a lot of people and perhaps put a big dent in the protective shield reporters thought they had?

We begin with the day's developments in this extraordinary story from CNN's Kelly Wallace.

Kelly, what a day for journalists in America.

KELLY WALLACE, CNN CORRESPONDENT: What a dramatic day indeed, because this has turned into, Rudi, one of the biggest constitutional battles between the media and the government in decades.

Judith Miller of the "New York Times," in her last minutes of freedom, pushing through a pack of reporters before entering the federal courthouse. Inside, she told the judge she would not reveal her source. The judge then ordered her to jail for up to 120 days. She is currently in a jail at Alexandria, Virginia, just outside Washington.

In an interview late last month, one of the last interviews she did, Miller -- who never even wrote a story about the CIA agent in question -- said confidential sources were vital in uncovering matters of public concern.

(BEGIN VIDEO CLIP)

JUDITH MILLER, "NEW YORK TIMES": You either want to inspire people to come forward and talk about what they know, and that means that we have to protect them. It's pretty basic when you come down to it.

(END VIDEO CLIP)

WALLACE: And in a dramatic reversal, Matt Cooper of "Time" magazine told the judge that he would now testify. Cooper said he had said his goodbyes to his six-year-old son and was fully expecting to be sent behind bars, but that a call from his source just hours before the hearing changed everything.

(BEGIN VIDEO CLIP)

MATTHEW COOPER, "TIME" MAGAZINE: So what I had, had happened this morning was that that source gave me a personal, unambiguous, un- coerced waiver to speak to the grand jury. And it was only then when I was satisfied that that source was comfortable with me speaking and indeed wanted me to speak to the grand jury.

(END VIDEO CLIP)

WALLACE: Cooper told reporters he would not reveal his source.

Now, at issue here, who revealed the identity of Valerie Plame, a CIA operative whose husband was critical of the Bush administration's Iraq policy?

Rudi, the special prosecutor here has indicated that his investigation is pretty close to being wrapped up, with the exception of Miller and Cooper's testimony. So all signs are that this investigation should be concluding very soon.

BAKHTIAR: All right. We'll be looking forward to hearing more on that. Kelly Wallace, thank you.

So what's the end-game here? What will the prosecutor find, and what leads back to the White House? We're going to come back to this later on a legal roundtable. We'll tell you all about that.

In Idaho tonight, investigators believe they are closer to solving a murder mystery. They say the man who abducted eight-year-old Shasta Groene and her brother is probably the same man who brutally killed three people at their home in Coeur d'Alene. Now, this afternoon, Shasta's older brother expressed the same belief.

(BEGIN VIDEO CLIP)

JESSE GROENE, SHASTA'S BROTHER: It's not like somebody else murdered my family and then he just so happened to come by and there was two little kids just chilling there and he just picked them up, you know?

This guy has a history of tying people up, he has a history of beating people, and that's exactly what happened to my family, so, you know, I know it was this guy. And plus, my little sister said she saw him there and he was the only guy, so I have no doubt that he's the one that murdered my family.

If they don't give Duncan the death penalty, I'm going to.

(END VIDEO CLIP)

BAKHTIAR: Shasta herself has given investigators a lot of information to help them solve this mystery. But as CNN's Sean Callebs reports, there are still a lot of questions that need to be answered.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): Investigators are negotiating a delicate balance with Shasta Groene, gently pressing the only apparent witness for details about the triple murders and the kidnapping of her and her brother without further compromising her emotional and physical well-being.

Family members say it could be cathartic.

DARLENE TORRES, SHASTA'S GRANDMOTHER: Probably her getting this out to the right people is probably the best thing that ever happened to her, you know, because she's telling her story.

CALLEBS: Shasta's statements are critical to making a case against Joseph Duncan. But there are important gaps, as well. Investigators say perhaps looming largest, what brought Duncan to northern Idaho and why the Groene's house?

CAPT. BEN WOLFINGER, KOOTENAI COUNTY SHERIFF'S DEPARTMENT: That's a great question. And that comes back to sometimes motive or -- it really does, it's a motive question. And sometimes motive is the last question we get answered. CALLEBS: Right now, they say they have no motive. Court documents show Shasta told investigators Duncan tied up her mother, 13-year-old brother, and her mother's boyfriend. The next day, authorities found a grisly crime scene, the three bound and bludgeoned to death.

WOLFINGER: The investigative team has stated that, at this time and according to the evidence at hand, they believe that Joseph Duncan is the only person responsible for these crimes.

CALLEBS: Duncan was caught with a 2005 Jeep Laredo. But court records show Shasta told investigators that Duncan took her and her nine-year-old brother, Dylan, to a pickup. What happened to the pickup?

WOLFINGER: Investigators say that all vehicles that they are aware of in this case have been accounted for. They are not yet in a position to comment specifically on the pickup mentioned in yesterday's court documents and its role in the investigation.

CALLEBS: There is outrage in Coeur d'Alene. Duncan spent most of his adult life in prison for sexually assaulting a child, and he was on the run from police, jumping bail on child molestation-related charges in Minnesota. People here want to know, why was Duncan free on bail?

Simply put, because he came up with the $15,000 for his bail. The judge admitted to a Minnesota newspaper he would have set bond higher had he known Duncan was a level-three sex offender. That's the highest level and most likely to attack again.

(END VIDEOTAPE)

CALLEBS: But of all the questions, the one most frequently asked here in northern Idaho -- just how is young Shasta doing, and when is she going to get out of the hospital?

A short while ago, her father addressed the media here at the fairgrounds, and he said Shasta is doing well, and he thanked the community and the nation for their support.

I had a chance to speak with her grandmother today, and she said everyday Shasta is looking more and more like her old self and that she's just itching to get out of that hospital -- Rudi?

BAKHTIAR: Sean Callebs in Coeur d'Alene, Idaho.

Let's move on now to Erica Hill. She's joining us from HEADLINE NEWS with the other stories we're following tonight.

Hello, Erica.

ERICA HILL, CNN HEADLINE NEWS ANCHOR: Hi, Rudi, good to see you.

We start off with news the U.S. military is holding up to five U.S. citizens suspected of being insurgents in Iraq. Now, the men were each captured in the past seven months in different locations. They do not appear to have ties to one another.

In Washington, D.C., a controversial new book by Senator Rick Santorum. In the book, the Republican compares abortion to slavery, urges mothers to stay home to raise children, and questions diversity training in schools. Much about the book and its title, "It Takes a Family: Conservatism and the Common Good," is a direct retort to Senator Hillary Clinton's book written in 1996 -- that one, of course, entitled "It Takes a Village, and Other Lessons Children Teach Us."

In New York City, a rap diva now headed to prison. A federal judge sentenced Lil' Kim to a year and a day behind bars for lying to a grand jury to protect a friend involved in a 2001 shooting outside a Manhattan radio station. She also needs to pay a $50,000 fine, and she'll serve three years probation. Lil' Kim, whose real name is Kimberly Jones, must turn herself in on September 19.

And in London, talk about celebration. This, of course, after news that the city will host the 2012 Summer Olympic Games. London beat out front-runner Paris, along with Moscow and New York, to host the games. A lot of excitement there.

And that's the latest from HEADLINE NEWS. Rudi, back over to you.

BAKHTIAR: We in New York are moping, Erica.

HILL: I know. I know.

BAKHTIAR: But thank you. See you again in 30 minutes.

Coming up next on 360, tropical trouble. One storm hits the U.S. and another is on its way, the first hurricane of 2005. We're going to tell you where and when.

Plus, G-8 anger. Protesters already making a scene in Scotland. A CNN reporter was right in the middle of it.

And who's the source that outed a CIA agent? Earlier, we told you one reporter is jailed tonight. Another is set to testify. Coming up, CNN's Jeffrey Toobin and others weigh in on the case.

(COMMERCIAL BREAK)

BAKHTIAR: Residents along the Gulf Coast spent today cleaning up from Cindy. The tropical storm caused flooding and left more than a quarter million people without electricity at one point. Tornado warnings and weather alerts are still in effect in some counties of the Southeast.

And coming up right behind Cindy, guys, Dennis. A short while ago, the tropical storm was upgraded to a hurricane, the first Atlantic hurricane of the 2005 season.

CNN meteorologist Rob Marciano joining us from the Weather Center in Atlanta with the latest.

Rob, what can you tell us? ROB MARCIANO, CNN METEOROLOGIST: Well, a couple of impressive pictures you just showed there, Rudi. A very large storm. Here's the Caribbean Sea, the Atlantic Ocean. And the storm right here pretty much takes up the entire Caribbean. So from the Island of Hispaniola, Puerto Rico, all the way down to the coastlines of Venezuela and Colombia, the cloud canopy is quite impressive.

We highlight the higher tops of the clouds -- it's where the strongest storms are -- with the red and oranges here. And you really see the last couple of hours it starts to take shape and it is strengthening. And the forecast is for it to strengthen even more.

Jamaica's here, about 315 miles away. It is heading directly to the island of Jamaica at about 14 miles-an-hour. It has winds now sustained at 80 miles-an-hour, and the forecast is for it to strengthen not only to a category one or two storm, but possibly a category three as well.

So tomorrow morning through Jamaica. By Friday, looking at the western tip of Cuba as a category-three storm, winds of 115 miles-an- hour. After that, it gets to the Gulf of Mexico. Still very warm waters there. Probably the Gulf of Mexico is pretty much surrounded by land. So once it gets in there, it's got to make landfall somewhere.

So likely somewhere along the southeastern coastline of the U.S. sometime Sunday-Monday, likely as a category-three storm.

What does that mean? Well, winds 111 to 130 miles-an-hour, storm surge at nine to 12 feet. What that does, it takes down large trees and utility poles. It also damages some small homes and the low-lying escape routes could be completely cut off due to flooding hours before even making landfall.

So category-three storms are named major storms for that reason. It looks like Dennis is going to be that as we go on through the weekend.

One other point, Rudi, we want to make, is that this is the fourth named storm of the season. Never before have we seen four named storms this early in the season. We thought it would be busy, and it's certainly turning out to be.

Back to you.

BAKHTIAR: Good information there, Rob. Thank you.

Now, as Rob just mentioned, Dennis could be heading towards Haiti, not what that country wants to hear. Here's why. Three thousand people died when Hurricane Jeanne hammered Haiti in September of last year. That's the most any one country lost due to a hurricane in 2004. Jeanne also left 300,000 Haitians homeless.

Still to come here on 360, a dramatic development in the trial of a leaked CIA agent's name. A reporter agrees to testify about his source. Could this source be the next Deep Throat? We're going to go inside the mystery in Washington. Also tonight, military fighter jets in paradise. They join the search for missing teenager Natalee Holloway. We're going to get the latest from Aruba for you.

Plus, angry mobs try to storm the site of the G-8 summit, and CNN was right in the middle of it. We're going to take you there.

(COMMERCIAL BREAK)

BAKHTIAR: It's a short stay at a resort in Scotland, but it's no mini-vacation. Tonight, President Bush and other leaders of the world's richest nations are preparing for tomorrow's G-8 summit. Outside of their hotel, though, protesters are trying to make their visit anything but comfortable.

Becky Anderson has that in tonight's "World in 360."

Hello, Becky.

BECKY ANDERSON, CNN CORRESPONDENT: Yes. That's right, Rudi. We all heard there's a summit underway in Scotland with the heads of state of some of the world's richest economies. And whilst there were smiles all around, as leaders greeted each other in the grounds of the golfing resort of Gleneagles, just outside the perimeter gate, and well within hearing distance, there were scenes of a rather less welcoming sort, as Matthew Chance learned when he was covering protests earlier and filed this reporter's notebook.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN CORRESPONDENT (voice-over): It started like covering a carnival, the drums and whistles. Even the anti-capitalist slogans seemed good humored. It couldn't last.

Most were marching in peace, but when some demonstrators broke away from the agreed protest route, we had to follow and found ourselves amid tense clashes with the police.

(on-screen): At the moment, this sort of violence has been more or less sort of subdued between the police and the protesters. There's been a few stones that have been thrown, a few charges. And we're just about to experience one now, but it's relatively low-level stuff.

They're trying to push back the crowds here in the fields outside of Auchterarder. They're using their batons, and you can see that putting their hands up and saying, you know, don't hit us.

But the police are determined, it seems, to push back these crowds. They've gone to using dogs. And so there are -- I don't know whether you're still with me here, but we're being charged by the police line.

Press, press, press. They're fine.

Anyway, you have this picture.

Scotty, stay with us.

But basically, we're bringing you now live pictures of the police, a charge on the outskirts of the Gleneagles Hotel where the G- 8 summit is taking place.

(voice-over): It was a standoff filled with potential dangers for us. The dogs and batons you've seen, but there were also rocks being thrown and the possibility of an attack by the protesters themselves, some of whom seemed hostile to the media. But it was an intense experience in which we all had to concentrate, not just on our surroundings, but on the nuts and bolts of television news gathering as well, like stand-ups to the camera.

(on-screen): The protesters have come here to Auchterarder to make their voices heard and to get as close as they can to the Gleneagles venue, to get their message across to the world leaders. The protest started out as a peaceful one. But this is the kind of confrontation many people expected.

(voice-over): And we had expected it, too. Not hope for it, as some accuse us journalists of doing, covering the violence instead of the issues, but prepared ourselves enough to cope when these anti-G-8 protests turned sour.

(on-screen): OK, let's go. Let's get out of here.

Scotty? Thank you. Let's get out of here. What's the location?

Matthew Chance, CNN, Auchterarder, in Scotland.

(END VIDEOTAPE)

BAKHTIAR: Wow, talk about being right in the middle of the story.

Still to come here on 360, is the tide turning against the family of Natalee Holloway? Why some people in Aruba are so upset. We're going to have the latest details for you.

Plus, breaking the law for sunscreen. Some people are going to the black market for some extra protection. We're going to tell you why in our special "Summer Survival" guide.

And a reporter refuses to testify and goes to jail. Is the person she's trying to protect the next Deep Throat? We're going to take you "Inside the Buzz" in Washington.

(COMMERCIAL BREAK)

BAKHTIAR: We're going to turn back to the story which we began with this evening, a story that has come a long way from its origins a couple of years ago, morphing from a side bar to the Iraq war, into a domestic political firecracker and a major freedom-of-the-press issue.

CNN senior legal analyst Jeffrey Toobin charts the strange growth of the Valerie Plame affair.

(BEGIN VIDEOTAPE)

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: It started with a controversial claim in the president's 2003 State of the Union address.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa.

TOOBIN: But the man who'd been sent to Africa to look into that assertion, veteran diplomat Joseph Wilson, embarrassed the administration by saying in a commentary published in the "New York Times" two years ago today that the president's claim was bunk.

Then, a week after Wilson's story, this -- a column about Wilson by columnist and CNN contributor Robert Novak with this sentence, "His wife, Valerie Plame, is an agency operative on weapons of mass destruction."

As a CIA operative, Valerie Plame's name was secret. Had someone in the administration outed Plame -- a potential crime -- to get back at Wilson? Democrats demanded a special prosecutor and got one, Patrick Fitzgerald.

Fitzgerald started asking who gave Plame's name to Novak and to other reporters, and the prosecutor started subpoenaing them. Matt Cooper of "Time" and Judith Miller of the "New York Times" refused to name their sources and were found in contempt of court and threatened with jail.

At the very last minute, Cooper says his source released him from his promise of confidentiality, and he agreed to testify. Miller still did not. So Judge Thomas Hogan sent her to jail today to serve until the grand jury expires in about four months.

(END VIDEOTAPE)

Here's what Joseph Wilson, the diplomat who started the ball rolling, had to say today about the jailing of "New York Times" reporter Judith Miller. "Ms. Miller joined my wife, Valerie, as collateral damage in this smear campaign launched when I had the temerity to challenge the president on his assertion that Iraq had attempted to purchase uranium yellowcake from Africa".

To talk some more about this interesting and complicated business, I'm joined again by CNN national correspondent Kelly Wallace here in New York and Myron Farber, a "New York Times" reporter who actually went to jail back in the '70s to protect a confidential source, and in Minneapolis, Minnesota, attorney and blogger John Hinderaker.

Kelly, let's start with you. Where is Judy Miller right now?

WALLACE: Right now, she's in a facility in Alexandria, Virginia, just outside Washington, D.C. We're not sure if that's where she's going to be permanently. Her attorney says they don't know right now. They should know more in the morning.

We do know that, originally, there was some discussion that she would go a D.C. jail. She had originally told the judge she hoped she could have house confinement, which the federal special prosecutor says no way, or a woman's facility in Connecticut, no way to that. So it'll be somewhere in the D.C. area.

TOOBIN: She has some distinguished company in this jail?

WALLACE: It's Zacarias Moussaoui. And people will know him. He has often been referred to as the potential 20th hijacker, when we've talked about the September 11th attacks. We believe he is inside that facility.

We kind of joke, and we're being facetious, but if anyone's going to get an exclusive interview with Moussaoui, if she's behind bars there, it might be Judith Miller.

TOOBIN: Something good may come of it. What happens now with Matt Cooper? He said he will testify in the grand jury. Do we know when?

WALLACE: We don't know when. And he has obviously indicated -- and you saw him when he came out and talked to reporters. He said this has been a very difficult ordeal. He said that he had told his son before he went to camp, I might not be seeing you for a while.

He fully expected, he said, to be going behind bars, but that he got this call just hours before the hearing. He said the source said absolutely without a doubt you can testify. You won't threaten this confidentiality agreement, and so he changed his mind.

TOOBIN: John in Minneapolis, let me ask you, do you have a problem with this, with a prosecutor treating a reporter like any other witness, having to comply with the law?

JOHN HINDERAKER, POWERLINEBLOG.COM: No, I don't. I mean, the question a lot of people have about this is, what makes reporters so special?

You know, Norman Pearlstine, the editor-in-chief of "Time" magazine, made a decision to turn over "Time's" reporter's notes to the prosecutor. And he said, you know, when President Nixon lost his appeal on the Watergate tapes, he obeyed the court order and turned them over. And he said, how is it that presidents are not above the law, but reporters are? And I think that's the way a lot of people view this kind of controversy.

TOOBIN: Myron, let me ask you. Is what Judy Miller is asking for here, and is what you were asking for when you were subpoenaed back in the '70s, to be above the law?

MYRON FARBER, FRM. NEW YORK TIMES REPORTER: I don't believe so. I think that "Time" magazine missed the mark on that. Judy Miller is running from the law. She went through the processes of the law in the hopes that her view would be seen and approved. It wasn't. So she has met the law. She has chosen to enter into an active, what some might even regard as civil disobedience and turned herself in for the requisite punishment.

TOOBIN: But what's the value? Why should journalists be treated differently? Why should journalists have a privilege that other citizens don't to refuse to talk to a grand jury?

FARBER: Why do doctors have a privilege? Or lawyers? Or priests? Or accountants? Or social workers? They have it because society has determined that it is in the interest of the public as a public policy that they will have a testimonial privilege.

TOOBIN: John, do you think it's in the interests of the public to have a privilege for journalists as Mike just says?

HINDERACKER: Well of course, the federal courts do not recognize any such privilege. You know, to make the point very briefly...

TOOBIN: But should they, I guess?

HINDERACKER: I think the answer is, no. I mean, the theory behind the privilege that you always hear is that it protects these noble whistle-blowers who want to anonymously tell the truth. What we've seen though over and over and over is that these anonymous leakers for the most point are not noble whistle-blowers, they are people with a partisan axe to grind.

And I think most people don't have an awful lot of patience with the idea that there's an overriding public interest in protecting anonymous leakers.

FARBER: May I make a point about that?

TOOBIN: I'm sorry. We're out of time. Thank you, Mike, John, Kelly Wallace. Got to turn it back over to Rudi Bakhtiar now.

BAKHTIAR: Fascinating stuff there. Thank you, both.

All right. Coming up next on 360, anger in Aruba aimed at Natalee Holloway's mother from residents of the island and lawyers of two recently released students.

Also tonight, Dr. Sanjay Gupta clears up some questions over a sunscreen that's not readily available, but may be the best protection for you against skin cancer, part of our special "Summer Survival" guide.

(COMMERCIAL BREAK)

BAKHTIAR: Just in time for those long, hot summer days at the beach, here is some information that you should know that can help from you getting skin cancer. You may not know that most suntan lotion only protects you from one kind of damaging sun ray. That's why it's so hard to believe that here in the U.S. a good protection is only available on the black market. 360 M.D. Sanjay Gupta tells us why as we continue our summer survival guide.

(BEGIN VIDEOTAPE)

SANJAY GUPTA, CNN SENIOR MEDICAL CORRESPONDENT (voice-over): Everybody knows you're supposed to protect yourself against the sun. But in order to best do it -- get this -- you may need to do something that is technically illegal. Deborah Abrahams who lives in Miami is ready to do just that.

DEBORAH ABRAHAMS, HIGH-RISK FOR SKIN CANCER: I have had pre- cancerous moles, atypical. I removed surgically about three or four of them. My mother and father have had pre-cancerous moles removed. Both of them are freckley skinned, like I am -- very high risk, fair skin, and very high risk for cancer.

GUPTA: Not surprisingly, she wants the best product available to help. The problem is this. She can only get it on the black market. It's called Mexoryl.

DR. JOELY KAUFMAN, DERMATOLOGIST: Mexoryl is believed by most to the best mid-range UVA blocker that we have available today. Unfortunately, right now it's not available in the United States. It is being used in several other countries. It is being used in Canada, in Europe, in South America, in Japan, Australia, with great success.

GUPTA: It's been available in Europe for over a decade. But only a few here in the United States know about it, or can even get their hands on it. That's because...

KAUFMAN: Selling a medication that is not FDA-approved is illegal in the United States.

UNIDENTIFIED MALE: I wanted to buy this.

GUPTA: Now the truth is, the FDA is unlikely to track you down and prosecute you. In fact, what is actually illegal is the promotion and marketing of the product. When we called the FDA, here's how they put it -- "any product that contains Mexoryl in it at this point would be considered an unapproved new drug and therefore in violation of the FD&C Act if it was being marketed or promoted for an unapproved use in the U.S."

The Europeans, on the other hand think of sunscreen as a cosmetic. There are for fewer rules and regulations.

So what is the magic of Mexoryl? Many of the sunscreens today may only do half the battle -- that is, they may only fight UVB rays. What is missing, and this important, is the fight against UVA rays. UVB can cause a sunburn, but UVA rays are easy to forget. After all, they skip right past the skin's surface and go straight to your collagen.

They cause these, premature wrinkles. And they also interfere with the very DNA of your skin. That is a setup for cancer, which is why some consumers and enterprising dermatologists seek out Mexoryl. ABRAHAMS: I buy it at a dermatologist's office in Miami. I found out about it because my mother uses it. She gets her supplies of Mexoryl at her dermatologist's office. So she visits her dermatologist's and she'll buy supplies to last her a long time.

GUPTA: And she's not alone.

KAUFMAN: People are buying it from doctors' offices, surgeons, dermatologists, general practitioners even.

GUPTA: We found out that you can go to the Internet and get it as well. Even without FDA approval, word is getting out.

CAROL FADER, MANAGER, BOYD'S MADISON AVE: I hear that is the drug that is not approved, but it has been approved all over the world and Canada. And I understand that it's going to be approved very shortly.

GUPTA: And as things stand now, L'Oreal, the company that markets Mexoryl, is working with the FDA for permission. But the FDA won't say why it has not yet approved Mexoryl.

So, if you're not comfortable breaking the law, here's some things you can do besides avoiding the sun or investing in that stylish wide-brimmed hat. Read the label. You're looking for Parasol 1789. Write that down. It is one of the only UVA blockers approved currently. Make sure to combine it with a good UVB blocker.

Also, zinc oxide and titanium dioxide protect the skin by physically blocking both UVA and UVB.

And whatever it is, use it every day even if you're not at the beach, and even if the sun's not out.

(END VIDEOTAPE)

BAKHTIAR: All right. Sanjay Gupta with that.

Now, you heard Sanjay mention that Mexoryl can be found on the Internet. We wanted to see just how easy it was. So, here's a download. We found that there are 155 Mexoryl products for sale on eBay. Prices fluctuate a bit. But a going rate is about $24 for a 34- ounce bottle. Good to know.

Tomorrow we're going to continue our summer survival guide with a look at sunglasses, the ones that will protect your eyes and the ones that don't.

Coming up next on 360, anger in Aruba. Why some people are so upset at the family of Natalee Holloway. We're going to have that and the latest on the search.

Also tonight, endangered tigers sold for greed and status, part of a multibillion dollar illegal trade. We're going to take you inside that.

(COMMERCIAL BREAK) BAKHTIAR: Aruba isn't a very big island unless you're searching for one vanished 18-year-old girl, in which case, that tiny, arid, white-sand-covered speck of a place in the Caribbean must suddenly seem hopelessly huge.

With the latest now on the sad case of Natalee Holloway and the mounting anger, here's CNN David Mattingly.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): More than a month after Natalee Holloway's disappearance in Aruba, the sound of military jets on a high-altitude search reminds everyone, all is still not well in paradise: Warplanes overhead, a war of words below. A statement released by the attorney for Satish Kalpoe, one of the two suspects recently released from jail, takes aim at these angry words from Natalee's mother.

BETH HOLLOWAY TWITTY, NATALEE'S MOTHER: These criminals are not only allowed to walk freely among the tourists and citizens of Aruba, but there are no limits where they choose to travel.

MATTINGLY: The statement from the defense attorney Elgin Zeppenfeldt calls her words, "prejudicial, inflammatory, libelous and totally outrageous." He goes on, writing, "in light of the applicable principle of presumption of innocence, Mr. Kalpoe deeply resents the statement of Mrs. Beth Twitty, calling him a criminal with a flight risk." And the attorney writes Holloway's mother, "publicly acted as judge, jury and executioner."

He threatened legal action if the comments do not stop.

JOHN MERRYWEATHER, FORMER ARUBAN AMBASSADOR: When she starts calling them criminals walking among tourists, she is warmongering. She is creating, she is -- when I say warmongering, I'm using war very loosely. She is frightening people, because this is simply not true. And then you get disappointed.

MATTINGLY: Former Aruban Ambassador John Merryweather is among natives sympathetic to Holloway's family, but losing patience with criticism of the handling of the investigation.

MERRYWEATHER: She had 110 percent backing from the country, from the government, from the people, from the Marines, from the FBI, from the Dutch specialists, and I mean -- yesterday and today, F-16s flying over to find Natalee for us all, the Holloways and the Aruban people, because we are hurting.

MATTINGLY: According to a government spokesman, the Holloway disappearance has not affected the influx of tourists. Even now during what used to be known as the slow season, hotels report overbooking situations.

At the beach resort where Natalee once stayed, the F-16s are the only outward sign that anything is different. But tourist Barbara Crawford, who followed the case from her home in Toronto, now watches her own daughter a little more closely.

BARBARA CRAWDFORD, CANADIAN TOURIST: You can't stop yourself as a parent, from just looking at the landscape. You know? You're almost -- you're afraid to look around at the rock formations and the different ruins and you think: I wonder if that's where she is.

MATTINGLY: They're concerns shared across international lines. Petra Ruyter and her family came from the Netherlands with Natalee on their minds.

PETRA RUYTER, NETHERLANDS TOURIST: I hope we don't found her ourself.

MATTINGLY: You're worried?

RUYTER: Yes.

MATTINGLY: Why?

RUYTER: Because you have your daughter with you. We are protecting her now.

MATTINGLY: Aruban residents, however, frequently ask openly how much more can be done, and express concerns for the future.

UNIDENTIFIED MALE: We have done so much to try to locate the body, the government, police, ambulance, the military, you see these planes now. I mean, I don't know. I think only God can help us right now.

MATTINGLY: And as they listen to the roar of jets overhead, some wonder what happens if the closed-door investigation produces no answers, while others hear a reason for optimism.

MERRYWEATHER: I hear reassurance that this case is not closed. I hear a reassurance that we will find the solution.

(END VIDEOTAPE)

MATTINGLY: Natalee Holloway's family is aware of the comments made about their statements by the defense attorney. But as -- so far tonight, they have had not had any comment of their own.

Rudi?

BAKHTIAR: David Mattingly, from Aruba.

Erica Hill joining us from HEADLINE NEWS now, with some of the other stories we're following.

What have you got for us, Erica?

HILL: Hi, Rudi.

We start off with something you might not expect. You probably expect President Bush to show up at a dinner with Queen Elizabeth in a tux, but not bruised and bandaged. Well, that's exactly what happened after the president and first lady arrived in Scotland for the G-8 Summit.

The president went on a bike ride and collided with a British police officer. The White House spokesman, Scott McClellan, says the president was going at, in his words, a pretty good speed when the accident occurred. There's no word yet on whose fault it was. The officer though, we know, was treated at a hospital and released.

Also tonight, the search continues for a missing Navy SEAL in Afghanistan. He's one of four who were fighting insurgents a week ago. Two others were killed, another rescued. We've learned he, the man who was rescued, was knocked off his feet by a rocket blast. It caused him to slide down a mountain and out of sight of the attackers.

And back in the U.S., layoffs hitting new highs this summer. An employment firm says job cuts dropped 35 percent in June, with nearly 111,000 workers laid off. Most of those mass job cuts are in the struggling car and retail industries.

And Spain's best-known fiesta is under attack. In Pamplona, hundreds of people are protesting against the centuries-old running of the bulls. Demonstrators say tradition is not a justification for setting loose bulls on a course through the city streets leading to a bull ring where they face the bullfighter's sword.

Those are the headlines at this hour, Rudi. With that, we'll turn it back to you.

BAKHTIAR: Have you ever seen a bullfight, Erica?

HILL: I don't -- no. I haven't. And I know there's an art to it and it is long tradition, but I don't think I could watch it.

BAKHTIAR: It's pretty, pretty horrific. But I don't understand the naked part. Anyway, you'll have to explain that to me, after the show.

HILL: That one I know all about, honey. Don't worry.

BAKHTIAR: All right. Thanks, Erica.

Let's find out what's coming up at the top of the hour on "PAULA ZAHN NOW. Miles O'Brien is filling in for Paula tonight.

Hello, Miles.

MILES O'BRIEN, HOST, PAULA ZAHN NOW: Hello, again, Rudi.

Tonight we're focusing on the terrifying saga of Shasta Groene, the eight-year-old Idaho girl whose family was brutally murdered and who was just rescued from the clutches of a convicted sex felon. We'll talk to a close relative and find out how she's doing.

And the disturbing story of a California town where the convicted sex offenders outnumber the police and where townspeople are shocked and outraged to discover just who their neighbors really are.

That's at the top of the hour -- Rudi?

BAKHTIAR: All right. Thank you, Miles.

360 next: Smuggling tigers across the border. We're going to take you inside the illegal business.

(COMMERCIAL BREAK)

BAKHTIAR: Finally tonight, two white tiger cubs in the hands of a smuggler. The animals nearly died on their way to being sold.

CNN's Ed Lanvendera tells us how this case is just the tip of the iceberg in a multibillion dollar trading of endangered wildlife.

(BEGIN VIDEOTAPE)

LOUIS DORFMAN, ANIMAL RESCUS: They're hungry and ready to get home.

ED LAVENDERA, CNN CORRESPONDENT (voice-over): Louis Dorfman is helping rescue an endangered species, two young white tigers snatched from the grip of smugglers.

On a recent mid-June Morning, Mario Canales (ph) and Javier Casas (ph) noticed a pickup truck racing toward Mexico on this remote south Texas road.

UNIDENTIFIED MALE: I came over the street, and waved him down.

LAVENDERA: These Customs and Border Protection officers are usually on the lookout for terrorists and drug dealers, but the man in the truck didn't fit the mold.

JAVIER CASAS, U.S. CUSTOMS AND BORDER PROTECTION: He made an attempt to be evasive, like, in the questioning, during the interview.

LAVENDERA: After a few minutes, Canales (ph) decided to look inside the truck.

MARIO CANALES, U.S. CUSTOMS AND BORDER PROTECTION: When I was about to open the back door, he mentioned to watch out for my fingers. At the time I didn't think anything of it, maybe he had spiders or whatnot in the back. But not until I opened the door, boy, I was shocked and surprised.

LAVENDERA: Under clothes and bags were two rare white tigers. The little cubs were hidden in a dog kennel. There are only about 250 of these animals in the world.

UNIDENTIFIED MALE: I look over at my partner. What are we going to do now?

LAVENDERA: The driver was questioned a few hours. Officers say the man claimed to have bought the tigers in Texas and was taking them to a zoo in Northern Mexico. Officers also found an album with pictures of where the cubs were supposedly being taken.

CASAS: In the scrapbook, he had pictures with these animals, and it really looked like they were nothing but kind of like in a pigpen. There's no shrubs, no trees. Just mud.

LAVENDERA: The U.S. Fish and Wildlife Service estimates the business of trading endangered wildlife is a $15 billion a year industry. But this is a story of huge profits and oftentimes small penalties for people who smuggle these creatures illegally. The man caught with these two white tigers was fined $500 and released.

(on camera): It's not exactly clear what would have happened to these two little tigers had they been taken south of border. But many people around here believe the smuggling is part of the macho drug culture, where drug lords want to create their own private zoos as a way of showing off their wealth and status.

DORFMAN: Come on, we're going to go eat.

LAVENDERA: The cubs were flown to an exotic feline sanctuary near Ft. Worth, Texas, where Louis Dorfman and a team of specialists raise exotic cats. Dorfman has been giving these nine-week-old cubs special attention.

UNIDENTIFIED MALE: We have to be their substitute parents. And that is very important.

LAVENDERA: He says they arrived malnourished and highly agitated. The kind of stress, he says, that could have easily killed them.

DORFMAN: These are children. To me they're children. They're very fragile children. It's really terrible when you take something this wonderful and this rare and this beautiful and just, really, just disposable and put them in such danger.

LAVENDERA: Endangered animals come with high price tags on the black market. Experts say these two white tiger cubs would have sold for $50,000 each. Some animals are sold for body parts, others are status symbols

DORFMAN: I think that any time endangered wildlife is sold, somebody's out to make a buck. The trade of these endangered cats and the other animals is ongoing right now as we speak.

LAVENDERA: These two white tigers have been given a new home now, rescued by chance from the dangerous and often deadly world of exotic animal smuggling.

Ed Lavandera, CNN, Stark County, Texas.

(END VIDEOTAPE)

BAKHTIAR: Louis Dorfman, who is nursing the white tiger pups back to health, is joining us now from Boyd, Texas. Thank you so much for joining us, Louis.

DORFMAN: My pleasure.

BAKHTIAR: You're standing in front of some big, exotic cats. Of course, we can't see them right now, because they're lying down. They were all seized by government agencies. Take us inside the world of exotic animal smuggling. How big of a problem is it?

DORFMAN: Well, it's a huge problem both in and out of the United States and within the United States from state to state. People illegally take animals from a state that allows breeding into a state that doesn't. And then, of course, these white tigers are extremely rare and could bring about $50,000 apiece in Mexico.

And, of course, most people look at carefully for contraband going into Mexico. But then there's an awful lot of wildlife is brought in to the United States, because the public just doesn't care enough to make sure about the background of what they're buying. So it's a consumer-led problem.

BAKHTIAR: So let's say I wanted to get my hands on a white Bengal tiger -- not like I would -- like the ones seized at the border, or any other exotic animal. How hard or how easy would it be for me?

DORFMAN: Well, with almost any exotic animal, you can get one within 24 hours. You can get one through publications, through the Internet, through exotic animal auctions. It might take you a week or two to get an elephant, but anything else you can probably get within 24 to 48 hours.

And probably for most animals, pay less than $5,000.

BAKHTIAR: That is still a lot of money to pay for these exotic animals.

Let's talk a little bit more about the connection between exotic animal smuggling and drug dealers. I know you're seen that first hand.

DORFMAN: Oh, yes. We have a lot of cats here that came from drug dealers. Actually, if people want to look on our Web site, which is bigcat.org, there's a history of every cat out here. And many of these cats came from drug dealers.

They think it's a macho thing. Once they've bought the fancy watches and the fancy jewels and the fancy cars, here is something that their buddies don't have. So then their buddies have to have it. So it's become quite common. And a number of them have ended up out here that were seized from drug dealers.

BAKHTAIR: Let's talk about white Bengal tigers. You've worked with them. Two years ago a white Bengal tiger attacked Roy Horn. Do you think exotic animals can be tamed?

DORFMAN: Well, they're never tame. They can be handled. And they -- they have a strong combination of emotion, instinct and no inhibition. So they're not unlike we are. Actually, if you treat them with respect and dignity and consideration that they deserve, then you can co-habit with them and interact with them. But they're never going to be a pet. They're not meant to be a pet. If you think of them more like another human than you do an alien being...

BAKHTIAR: All right. We're going to have to leave it at that, but thank you very much, Louis Dorfman, we appreciate you joining us.

I'm Rudi Bakhtiar in for Anderson. CNN's primetime coverage continues now with Paula Zahn -- excuse me, with PAULA ZAHN NOW, hosted by Miles O'Brien. Hi, Miles.

END

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