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CNN Live At Daybreak

Rove Leaked; No Tunnel Cells; Cleaning Up; Return to Space

Aired July 12, 2005 - 05:29   ET

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

KELLY WALLACE, CNN ANCHOR: Good morning, everyone, thanks for waking up with us. I'm Kelly Wallace in today for Carol Costello.
Coming up in the next 30 minutes, just who did leak the identity of a CIA operative to the press? Some think it's this man, Karl Rove.

And where's the best place to live? A new study says the very best town is in New Jersey. That's right. And we'll tell you where in this half-hour, we promise.

But first, these stories "Now in the News."

Two people are dead, another 12 injured following a powerful blast in a Beirut, Lebanon suburb about 90 minutes ago. Security officials for Lebanon's defense minister say his motorcade was the target of the attack. The defense minister is said to be injured, but not as badly as one of his aides.

Secretary of State Condoleezza Rice wrapping up her tour of east Asia today with a final stop in Seoul, South Korea. Rice's plans to restart the region's nuclear disarmament talks later this month depend greatly on North Korea's willingness to give up its nuclear weapons.

In Aruba, still no sign of missing teenager Natalee Holloway, despite island flyovers of reconnaissance planes searching for her. Later today, another detention hearing will be held for primary suspect Joran Van Der Sloot. And prosecutors will appeal the release of two other dudes, brothers Deepak and Satish Kalpoe.

Following Monday's shooting death of a 19-month-old baby during her father's standoff with police, L.A.P.D. Chief William Bratton is defending his officers' actions. Bratton says it's too early to tell whether officers fired the shot that killed the little girl. Witnesses say the father used his daughter as a shield while firing on police.

Monaco's Prince Albert II will formally be installed as ruler of the Mediterranean state. He succeeds his father, Prince Rainier, who died earlier this year at the age of 81.

To the Forecast Center now, Rob Marciano in for Chad.

And, Rob, Hurricane Dennis turned into Tropical Storm Dennis. Is it still causing problems?

ROB MARCIANO, CNN METEOROLOGIST: It is, in the form of rain, and it's going to be heavy at times. (WEATHER REPORT)

That's the latest from here, Kelly, back over to you.

WALLACE: Hard to believe, Rob. And what will this be, the fifth storm...

MARCIANO: Yes, this...

WALLACE: ... that has been given a name in this early season so far?

MARCIANO: And, actually, that's another record. This is the earliest we've ever seen five named storms, well, this early in the season.

WALLACE: Incredible. OK, Rob, we'll check in with you in about 15 minutes or so.

MARCIANO: Cool.

WALLACE: Turning now to the investigation into who leaked the name of a CIA operative to the press. A lot of news coming out over the past few days, and a lot of it concerning one of the top political advisers to President Bush, White House Deputy Chief of Staff Karl Rove.

More now from CNN White House correspondent Suzanne Malveaux.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Bush's top political adviser, Karl Rove, was the secret source for "TIME" magazine reporter Matt Cooper in a story that eventually outed a covert CIA agent. But questions remain as to whether any laws were broken.

In e-mails first published in "Newsweek" and Monday's "Washington Post," Cooper tells his boss he spoke to Rove on "double super secret background" regarding Joe Wilson. The ambassador said he'd been sent by the CIA to investigative whether Iraq was trying to buy uranium in Africa.

According to Cooper's e-mail, Rove tried to warn him off some of Wilson's assertions. "It was, KR [Karl Rove] said, Wilson's wife, who apparently works at the agency on WMD [weapons of mass destruction] issues, who authorized the trip."

Her name, Valerie Plame, was first reported by columnist Robert Novak in July, 2003, three days after Cooper's conversation with Rove.

Since then, a federal prosecutor has been investigating whether anyone knowingly blew her cover, which is a federal crime.

Last August, Rove told CNN...

KARL ROVE, SR. WHITE HOUSE ADVISER: I didn't know her name. I didn't leak her name.

MALVEAUX: Rove's attorney, Robert Luskin, backs that claim today, telling CNN, "A fair reading of Cooper's e-mail suggests that what Karl was trying to do was to discourage "TIME" from reporting allegations that proved to be false, not to encourage them to publish anything about Wilson's wife." Luskin says Rove never identified Plame by name, nor did he know she was a covert operative.

Some legal observers say Rove's comments to Cooper are irrelevant because they don't meet the high standards set by federal law which make outing a spy a crime.

VICTORIA TOENSING, LEGAL ANALYST: That statement that Karl Rove gave the identity of Wilson's wife can only be illegal if the CIA was taking affirmative measures to protect her identity and Karl Rove was aware that the CIA was doing so.

MALVEAUX: When Rove's name first came up as part of the CIA leak investigation, the White House was seemingly quick to clear him and other administration officials.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I have known Karl for a long time. And I didn't even need to go ask Karl, because I know the kind of person that he is, and he is someone that is committed to the highest standards of conduct.

MALVEAUX: But now the White House has changed its tact.

MCCLELLAN: Those overseeing the investigation expressed a preference to us that we not get into commenting on the investigation while it's ongoing.

MALVEAUX (on camera): Last year, Mr. Bush promised to fire anyone caught leaking, saying that if the person violated law, they will be taken care of. So far, there is no evidence to show that Karl Rove knew that Valerie Plame's identity was being protected.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

WALLACE: And we will delve deeper into this whole story with the man who broke the story, "Newsweek" investigative correspondent Michael Isikoff. He joins us live in the next hour of DAYBREAK.

And now to a CNN "Security Watch."

American troops are being ordered to stay out of London. The so- called battle staff directive came one day after four terrorist bombs killed at least 52 people in the British capital. The ban applies to all 12,000 U.S. Air Force personnel stationed in Britain. A London newspaper slams the decision as -- quote -- "timid."

The House Judiciary Committee will begin debating the Patriot Act tomorrow. The post September 11 antiterrorism powers will expire at the end of the year unless Congress votes to renew them. A new congressional proposal would make most of the provisions permanent, except what is called the Administrative Subpoena Power, which would give agent's authority to conduct searches without a judge's approval.

Well do you feel safe on America's rail lines? Consider this, the Homeland Security Department was given $10 million to make sure rail lines are secure. But through May 31, it has plans to spend only a little more than $700,000. Democrats say the Bush administration is dragging its feet when it comes to rail security.

And in Afghanistan, four terror suspects are being hunted after their escape from a high security prison at Bagram Air Base. Some 5,000 American troops are stationed at that base. The military says this was the first successful breakout since it began detaining suspected al Qaeda and Taliban militants over there four years ago.

A decision to cut cell phone service in New York tunnels after the London bombings is under fire. Drivers isolated in dimly lit tubes deep beneath the Hudson or East rivers say their cell phones give them a link to the outside world. But transit authorities see it differently. They say those phones could be used to detonate a bomb.

More now from CNN's Mary Snow.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Authorities say immediately after Thursday's bombing attacks in London, officials in New York cut cell phone service used by drivers in the four underwater tunnels into Manhattan. Without elaborating, the agencies overseeing them cited security concerns for the unprecedented move.

In the past, New York's tunnels have been cited by law enforcement as potential terrorist targets. And security experts say terrorists have used cell phones to detonate explosives.

DAVID HARVILLE, CRITERION STRATEGIES: Recognizing that the tunnels in Manhattan are a potential terrorist target and that cell phones can be used as tools for terrorists to detonate explosive devices, shutting down cell phone usage in there helps minimize that risk.

SNOW: The Port Authority of New York and New Jersey says it suspended the services as a security precaution. It did not mention any specific threats, but points out it is in constant contact with local, state and federal agencies.

New York's police commissioner made it clear the decision was not ordered by the police department. He, and others, have urged people to report suspicious packages and suggests having cell phones operating in tunnels is beneficial.

RAY KELLY, NYC POLICE COMMISSIONER: I think it's good to be able to communicate from tunnels in the subway system, if possible. And I know there's an effort to enable cell phones to work in subway systems. Generally speaking, I think that's a good idea. SNOW: Mainly because of the shear size of New York's underground subway system and what it would cost, it has never been wired for cell phone service. But cell phone service has been operating in roadway tunnels for several years, and there are mixed feelings about cutting it.

TAYLOR ALEXANDER, NEW YORK DRIVER: I'm all for it, if it's for safety, because I don't want to be nowhere that somebody could detonate a bomb from a cell phone from a distance.

CHARLES BOYD, NEW YORK DRIVER: One of my worst nightmares is driving through the tunnel. And I have nightmares about that today.

CHUONG NGHIEN, NEW YORK DRIVER: I think, like, if you got trapped in there, you know you can't, like, use it though, you know, so I don't think it's a good idea.

SNOW (on camera): Cell phone service at two of the four roadway tunnels leading into New York has been restored. But here in New Jersey, it has not. The Port Authority saying that with the nation's alert still at orange, it will keep service suspended until further notice.

Mary Snow, CNN, Jersey City, New Jersey.

(END VIDEOTAPE)

WALLACE: And we thank Mary for that report.

Of course stay tuned to CNN day and night for the most reliable news about your security.

Well Dennis was no Ivan, that's for sure. Still, insured losses are estimated at between $3 billion and $5 billion. And on Monday, Florida Governor Jeb Bush toured part of the Florida Panhandle where Dennis came ashore on Sunday.

(BEGIN VIDEO CLIP)

GOV. JEB BUSH, FLORIDA: The purpose really is twofold. One is to assess the damage and see where we can provide help to the residents of this great area of our state. And the second is to say thank you to the hundreds, literally thousands, of people that are in your community right now providing assistance and to thank the first responders here in Santa Rosa County for a job well done.

(END VIDEO CLIP)

WALLACE: And this is just some of what the Florida governor saw from his chopper. Take a look at that. In Pensacola Beach alone, more than 1,000 workers were trying to restore power to people living there.

Communities all along the Gulf Coast are cleaning up from Hurricane Dennis. Chad Myers was at the scene before the hurricane, throughout it and after. And he talks about those places where the people are working together to help an old friend.

(BEGIN VIDEOTAPE)

JOY BROWN, GENERAL STORE OWNER: Groceries of all kinds, produce and meats, paint, drill bits and just anything you want.

CHAD MYERS, CNN METEOROLOGIST (voice-over): Bo Lynn's is a quintessential general store, a throwback to the old days, where a customer's tab is maintained by a pad and pencil. Joy Brown has owned this St. Marks, Florida, landmark for more than 40 years. Her home is in the back of the store. Many residents in this town of less than 350 people think of her as their mother.

BROWN: I try to be all of them's mother, you know, even though I'm only 39.

MYERS: Bo Lynn's was hit hard by the devastating floodwaters that swept into this sleepy town with Hurricane Dennis.

BROWN: But we left here while it was still rising. The bread scattered everywhere. It floated off the rack.

MYERS: The hurricane's winds pushed salty Gulf of Mexico waters at least 10 feet higher than normal, overflowing into St. Marks. The waters receded by daylight, but the damage had been done.

(on camera): Sunday, right here, the water was over your head. Today, Bo Lynn's is closed because of the flood. The parking lot is full, all with friends that know her as Miss Joy.

DANIEL SCARBOROUGH, ST. MARKS RESIDENT: You can't get no better person than Miss Joy.

MYERS (voice-over): Friends here are getting Miss Joy back up and running before taking care of their own homes. They say it's their chance to pay her back.

SCARBOROUGH: She just helped me out. You know, mainly, when you don't have the cash to get groceries and food and stuff like that, she'd run you an account, you know? That means a lot, especially when you ain't got no money, you know?

BROWN: You don't let them get hungry just because they have a misfortune, and so you just help them out. And it pays off, I mean, like this.

MYERS: The flood made its way up to the top shelf in much of the store. Miss Joy says the saltwater has probably ruined most of her inventory, but not her spirit.

BROWN: And that's why I feel like it pays to live in a small area, a small town, because everybody pitches in and helps each other.

(END VIDEOTAPE)

WALLACE: And that report from our very own Chad Myers.

Many residents of St. Marks say they were prepared for some high water, but they hadn't seen that much flooding since Hurricane Kate blew through that area 20 years ago.

Well still to come here, after waiting two-and-a-half years, anticipation is building at NASA as the agency counts down to a new space flight. We'll show you some of the excitement.

And where is the best place to live? "Money" magazine has a suggestion. We'll tell you where a little later.

You are watching DAYBREAK for a Tuesday morning. We'll be right back.

(COMMERCIAL BREAK)

WALLACE: Somewhat disturbing story to tell you about, a technical glitch is being blamed for delaying reports of possible child abuse in Florida. The Department of Children and Families says more than 1,100 reports of possible abuse went unnoticed for almost two months, that's because they were sent to a faulty fax line. State officials say all of the cases are being looked into now and that there's no indication yet that any of the children were harmed.

Well your news, money, weather and sports. It's about 47 minutes after the hour. And here is what is all new this morning.

A powerful bomb rocked an area just north of Beirut, Lebanon, this morning. Police say it targeted the motorcade of the pro Syrian defense minister. He was wounded and two others were killed.

Secretary of State Condoleezza Rice says she's not opposed to South Korean food aid to North Korea before six-party nuclear talks resume. The secretary made the comments while in Tokyo to meet with top Japanese officials.

In money, Ford began selling its second hybrid vehicle on Monday. Ford says the 2006 hybrid SUV is more fuel-efficient. It starts at over $29,000 and it's being sold mostly online.

In culture, thousands of baseball fans turned out for Jennifer Garner's baby shower. The shower was held during a Minor League Baseball game in Garner's hometown of Charleston, West Virginia. But the gifts won't be going to Garner and hubby, Ben Affleck. Instead, they'll go to charity.

In sports, baseball's version of the World Cup will take place next March. Major League Baseball announced that 16 teams will be invited, including the United States, Cuba and Japan. The plan is for the tournament to be played every four years.

And, Rob, that might take the place of the Olympics.

MARCIANO: Really?

WALLACE: Olympic committee voting that eventually baseball and softball will be out of the Summer Games.

MARCIANO: That isn't going to break my heart.

WALLACE: Yes.

MARCIANO: You know it's not really an Olympic sport, I don't know. Would that be cool?

So let's check out the forecast. Here you go.

(WEATHER REPORT)

We'll be right back.

WALLACE: All right, Rob, we'll talk to you in a few minutes. Thanks so much.

Still to come here on DAYBREAK, anticipation is building, NASA preparing to return to space after a long two-and-a-half year wait.

We'll be right back. Don't go away.

(COMMERCIAL BREAK)

WALLACE: Lovely shot of New York City as folks are waking up on this Tuesday.

Turning now to news about NASA. We are now less than 36 hours away from the scheduled return to space of the shuttle Discovery. Discovery was originally supposed to launch in March of 2003, but the Columbia disaster changed those plans. Now NASA has a new outlook and emphasis.

CNN's Sean Callebs has the story from the Kennedy Space Center.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): It may look like the same spacecraft, but in many ways Discovery is a whole new machine, more than a billion dollars in improvements to prepare for NASA's return to flight. After the fiery deaths of Columbia's crew in 2003, is everybody ready?

EILEEN COLLINS, DISCOVERY COMMANDER: We at NASA, I believe, are fully capable of saying we are ready to launch, because we're ready for situation A, B or C, or any contingency that could possibly happen.

CALLEBS: Columbia disintegrated on reentry after a 16-day mission. An exhaustive investigation determined a pound-and-a-half chunk of protective foam from the external fuel tank broke free and hit the leading edge of the wing. The contact caused a small crack in the wing, allowing hot gas to seep in on reentry, destroying the wing and dooming the crew.

A new focus on safety is the prime mission of this crew.

STEPHEN ROBINSON, DISCOVERY MISSION SPECIALIST: Every single space flight is the most important space flight there ever was. If there's a major accident on it, it has the potential of stopping us in our tracks, and we are all well aware of that.

CALLEBS: Over the last two-and-a-half years, NASA has worked on protecting the shuttle from debris during liftoff. The leading edge of the wings and the nose cone have been toughened and a 50-foot-long robotic arm, equipped with two lasers, will be able to take 3-D images of the shuttle. It will detail any damage to the spacecraft.

Mission Specialist Charles Camarda will be checking the black edges of the wings for any breach of the reinforced carbon-carbon or RCC.

CHARLES CAMARDA, DISCOVERY MISSION SPECIALIST: We have learned more in the last two years on damaged RCC and damaged tile, what causes the damage and how that affects the ability of the orbiter to land safely.

CALLEBS (on camera): Look for daytime launches for the foreseeable future. That's because more than 100 cameras will be trained on the shuttle as it makes its way into orbit. Once in space, scientists and engineers will pore over that information to make sure the shuttle has not been damaged by debris during liftoff.

Sean Callebs, CNN, at the Kennedy Space Center.

(END VIDEOTAPE)

WALLACE: News "Across America" this morning.

The handyman accused of plotting to kidnap David Letterman's young son could get 10 to 15 years in prison. Prosecutors agreed to drop a kidnapping-related charge against Kelly Frank in exchange for guilty pleas on three other charges. The prosecutor says the plea deal accomplishes what he wanted, Kelly Frank goes to prison.

No let up for firefighters in Colorado, a massive wildfire that has forced some 5,000 people out of their homes near Pueblo has grown to over 11,000 acres. It's now moving away from the city of Beulah and threatening residents in Rye and Colorado City. They've been told to be ready to evacuate on short notice.

And want to know the best place to live in the country? Well, it's Moorestown, New Jersey, according to "Money" magazine. It says the tree-lined suburb of Philadelphia was chosen because of its population, property values, school quality, safety and other factors. People here rushing out now to move to Moorestown, New Jersey.

Well coming up in the next half-hour, a police standoff, a police shootout and a baby killed. We'll look at the dilemma officers face over using lethal force. Also, we'll talk more about the investigation into the leak of confidential CIA information.

You are watching DAYBREAK for Tuesday, July 12. Don't go away.

(COMMERCIAL BREAK)

WALLACE: "Entertainment Headlines" for you this Tuesday morning.

Farm Aid is returning for its 20th edition. Founders Willie Nelson, John Mellencamp and Neil Young will all perform in Chicago on September 18. The concerts have raised $27 million for farmers over the past two decades.

The "Fantastic 4" banned together to knock Tom Cruise out of the top spot at the box office. The live-action Marvel Comic movie made $56 million over the weekend. "War of the Worlds" came in second with just over $31 million.

Maximus may be dead, but he could still make a comeback in a sequel to "Gladiator." One of the film's co-stars says producers are trying to iron out scripts and casting questions for part two. The original "Gladiator" made $187 million at the box office in the United States and earned actor Russell Crowe a best actor Oscar.

You can get more entertainment news every night on "ShowBiz Tonight." That's at 7:00 p.m. Eastern on Headline News.

The next hour of DAYBREAK begins in just 60 seconds. Don't go away.

(COMMERCIAL BREAK)

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