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CNN Live Today

Security Ratcheted Up At London's Air and Rail Hubs; Nine Men Arrested In Connection With Bombings; NASA Grounds Fleet; Tips on Fighting Property Taxes

Aired July 28, 2005 - 10:00   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: On CNN LIVE TODAY.
Hey, Fred. Good morning.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello to you. Well, you're in the home stretch. Just one more day to go to the end of the work week. You all have a great day.

SOLEDAD O'BRIEN: You too.

WHITFIELD: All right. Well, here's what's happening "Now in the News."

The Discovery crew docked at the International Space Station and delivers needed relief to the astronauts onboard. But the mission could mark the NASA shuttle program's final voyage for a while. Meantime, the NASA shuttle fleet has been grounded. NASA managers say until the problem of break-away debris is solved, flights may be too dangerous. Miles O'Brien will have more on that, plus a full report on Discovery's hookup with the International Space Station coming up in about 11 minutes.

London police keep up the pressure. A manhunt is underway for three suspected terrorists in last week's failed bombings in London. In an early morning raid, police arrested nine men in South London, not far from the Stockwell station. We'll have a live update from outside Scotland Yard in one minute.

And the Labor Department reports a less than expected ride in new unemployment claims. Three-hundred-ten-thousand people applied for jobless benefits last week. In the previous week, claims dropped by a dramatic 32,000. Analysts say the numbers continue to reflect a strong labor market.

I'm Fredricka Whitfield at the CNN Center in Atlanta, in for Daryn Kagan.

A dragnet at dawn. British authorities have arrested nine more people in connection with the failed London terror attacks one week ago today. It has apparently been of great interest, the ongoing manhunt, as well as the progress of the investigation, even here in the U.S. Our Kelly Wallace is following that story.

(BEGIN VIDEOTAPE) KELLY WALLACE, CNN CORRESPONDENT, (voice over): A nationwide manhunt, the largest in the country's history. Thousands of officers trying to prevent the suspects still on the run from fleeing. There is heightened security in and around the airports and . . .

UNIDENTIFIED MALE: Please, do not leave (INAUDIBLE) parcels unattended anywhere on the station.

WALLACE: At this London station, where some trains leave the city and the country, passengers have to go through extra police checks. Roy Ramm is a former Scotland Yard commander.

How difficult is it to remain hidden when you are facing this massive manhunt?

ROY RAMM, RETIRED COMMANDER: You know, it's a bit of a cliche to say it, but the best place to hide a tree is in a forest. And London itself is a pretty big forest. There are millions of people in this city.

WALLACE: Police believe the suspects may have planned to blow themselves up in last week's botched bombings. If so, they means they most likely did not have an escape plan, according to Daniel Smith, an analyst with a private security firm in London.

Do you think it makes it easier potentially then for police if they didn't likely have any exit strategy or any exit plans in place?

DANIEL SMITH, PRIVATE SECURITY ANALYST: Yes, because they're likely to panic. What they will do is go for the familiar. They'll fall back even on friends or family or their own communities. In this case, it would be East African communities in the U.K. So, in that sense, it narrows the police search down that much more.

WALLACE: The suspects had just 24 hours of anonymity before their pictures captured by surveillance cameras and two of their names were broadcast nationwide. With one of them now in custody, there is a full-court press to get the public's help in finding the three still at large. When you head to London's underground train, the tube, like we did, you'll find posters urging people to call with information. This has led hundreds of witnesses to come forward, more leads to follow, but there is a down side.

RAMM: We're having very many conflicting statements. And the danger within that is that the police may be swamped in their investigation. It may slow it down in some respects.

WALLACE: Last week's fail attacks left a treasure-trove of forensic evidence for investigators, including fingerprints and DNA samples. But those take time to process. Something investigators don't have much of right now as they hunt the suspects.

RAMM: The longer they remain at large, the greater the opportunity they have of regrouping, maybe constructing other weapon and going back for another attack on the underground. WALLACE: Ultimately, much of it is police work 101. Tips are checked, homes searched, one clue leading to another. But with three of the four suspects still out there posing a threat, investigators believe it's becoming more urgent to track them down.

Kelly Wallace, CNN, London.

(END VIDEOTAPE)

WHITFIELD: For more on the London investigation and this morning's arrests, we go to Jonathan Mann who joins us on the telephone, joining us from Scotland Yard.

Jonathan.

JONATHAN MANN, CNN CORRESPONDENT: Fredricka, the bombers first struck London three weeks ago today. Another set tried one week ago today. People woke up in this city wondering what the day would bring and, in fact, what it brought was a very grisly photograph on the front page of many newspapers. I think we can show it to you.

What you'll see is a plastic bottle of a kind you'd find in any supermarket, but it's filled with explosives and there are detonator cables coming out of the top. There are also nails or tacks that have been affixed to the bottle using plastic wrap to create shrapnel if and when this was to be detonated. This bomb was not detonated. Police found it before the bombers could use it. But it gives you a sense of what they're worried by and it also gives the police, as we just heard, a lot of forensic evidence which they can work with.

They are working with other evidence as well. Nine men were arrested just a few hours ago in this (INAUDIBLE) area of South London. They're not among the suspected bombers, but are hoped to have information and police are interrogating them.

Now those arrests follow other arrests Wednesday night, also in South London, in the Stockwell neighborhood, of three women on suspicion of harboring offenders in connection with last week botched bombings. Neighbors tell CNN that one of the would-be bombers, a man who's been identified in one of the photographs, did, in fact, live in the apartment. They recognized him in a photo that was released by police.

Police have been through that apartment, so we can presume that they know the name of the man they're looking for, though they haven't identified him publicly. This is what the head of Scotland Yard, Sir Ian Blair, told the world about the investigation just a short time ago.

(BEGIN VIDEO CLIP)

COMM. IAN BLAIR, METRO POLICE: I'm confident that we will identify and find the bombers responsible and those that back them. But it does remain possible. We are in at a somber moment. It does remain possible that those at large will strike again. And it does also remain possible that there are other cells who are capable and intent on striking again.

(END VIDEO CLIP)

MANN: Now one of the suspected bombers is in police custody. A total of about 20 people, depending on how do you the math, are actually being held in connection with the attack. But that still leaves at least three potential bomber out there somewhere. And maybe many more people, the people who helped them, who equipped them, who spired them, police are trying to track them all down.

Fredricka.

WHITFIELD: Well then, Jonathan, when you say the nine arrested this morning are not suspected bombers, are they being linked to the failed bombing attempted bombing or the bombing of two weeks ago?

MANN: What we know is that they're not among the crucial three figures. But more than that, I can't tell you. The police are being very sketchy with details. Some of them are emerging, frankly, in the newspapers here and on the radio and turn out to be false. So the best lead we have is that they've taken more people into custody, but where exactly they fit in the puzzle right now I can't tell you.

WHITFIELD: Right. OK. Jonathan Mann, thank you very much for joining us from Scotland Yard in London.

In Pakistan, security forces have arrested a suspect in the murder of reporter Daniel Pearl. "The Wall Street Journal reporter was beheaded three-and-a-half years ago. Four other men have already been convicted in the case. An Islamic militant was sentenced to death for masterminding the crime. Three associates were sentenced to life in prison.

In "The Fight for Iraq," insurgents planted a bomb on train tracks in Southern Baghdad and ignited a tanker car en route to a refinery plant. Two people were killed and four wounded. In North Baghdad, two U.S. soldiers killed when their patrol struck a roadside bomb. A third soldier was wounded in the attack. Those deaths and the vehicle accident earlier that killed a Marine earlier today pushes the total number of American troops killed in Iraq to 1,783.

The rising death toll and deepening public doubts have some lawmakers calling for a planned withdrawal of U.S. forces. Right now, on Capitol Hill, a bipartisan group of congressmen are discussing the legislation. They want the Bush administration to develop and implement a pullout. They call their legislation "Homeward Bound."

Well just about three hours ago, the space shuttle Discovery hooked up with the International Space Station. Well just before docking, the crew did a back flip with the shuttle to photograph the craft's belly in search of potential damage. That maneuver was unprecedented and shows how concerned NASA is about a chunk of insulation that peeled off during yesterday's or rather Tuesday's takeoff.

It was that kind of falling debris that doomed NASA's last flight shuttle Columbia, which disintegrated upon re-entry two-and-a-half years ago. So NASA has grounded all future shuttle flights while it investigates. CNN's Space Correspondent Miles O'Brien explains.

(BEGIN VIDEOTAPE)

MILES O'BRIEN, CNN CORRESPONDENT, (voice over): A little more than two minutes after Discovery left the launch pad, the foam fell once again, and so did hopes for the beleaguered shuttle program two- and-a-half years after the loss of Columbia and her crew of seven.

BILL PARSONS, SHUTTLE PROGRAM MANAGER: You have to admit when you're wrong. We you know, we were wrong. We need to do some more work here. And so we're telling you right now, the bipod foam I mean the powerup (ph) foam should not have come off. It came off. We got to the go do something about that.

O'BRIEN: It was a large piece of insulating foam, but it was fortunate timing for the crew and NASA. At that point in the flight, the air flow did not send the debris toward the orbiter. The piece that shattered Columbia's heat shield and doomed the crew of seven fell off 40 seconds sooner, at just the moment when it would be blowing right into the leading edge of the wing. While mission managers say Discovery is in good shape and separate damage to thermal tiles is minor, they're confident the crew is safe. Just the same, they will be double checking.

WAYNE HALE, SHUTTLE DEPUTY PROGRAM MGR.: What we're going to do, I can guarantee you, is that we're going to look at the thermal protection system on the bottom of the orbiter very closely. And any damage will not detect or will not escape our detection of any significant damage.

O'BRIEN: But NASA had vowed to stop large pieces of foam from falling off the external fuel tank and redesigned several spot where is it was more likely to happen. In this case, the foam fell off a long wedge-shaped piece call the protuberance air load or PAL ramp. It is there to smooth out the air flow over some cables that run beside a liquid hydrogen pipe.

PARSONS: Right now, until we understand this problem, and until we're ready to say that we've fixed it and we're and we can say that we're safe to go flying, we're not going to go flying. Now, you know, I don't know if that's a month. I don't know if that's, you know, three months. I don't know how long that is right now. And so we've got a lot of work to do in front of us.

O'BRIEN: So even as a shuttle is finally back in space, the fleet is grounded. And while it seems highly unlikely Discovery would need another shuttle to come and perform a rescue mission, if that were necessary, NASA managers would be faced with a terrible decision. As it is, the most difficult decisions about the future of the program may come after Discovery is home.

Miles O'Brien, CNN, New York.

(END VIDEOTAPE) WHITFIELD: Well, in case you're checking the calendar, it is summertime, right? And there are plenty of activities outside to do. So why are some teenagers choosing to stay indoors? We'll explain.

After heavy last-minute lobbying, a narrow victory for President Bush. Still to come, a look at the Central American Free Trade Agreement and what it may mean for jobs in the United States.

And later, the search for a missing pregnant woman intensifies. Hear what neighbors have to say about her unusual disappearance.

(COMMERCIAL BREAK)

(WEATHER REPORT)

WHITFIELD: Well, do you know where your teen is? Probably online. You might be surprised how much time today's kids spend in front of a computer. That's coming up.

Plus, if you think your property taxes are too high, Gerri Willis is here with some advice.

Gerri.

GERRI WILLIS, CNN CORRESPONDENT: Hey, Fredricka.

The good news, that you can fight city hall if your property taxes are going up. We'll show you how to do it when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

WHITFIELD: On Wall Street, let's check some of the numbers there on the Big Board. The Dow up, fluctuating between 12 and 13 points. And the S&P up almost about a point today.

Homeowners beware, property taxes are skyrocketing nationwide in a few places by as much as 80 percent in the past four years. But there are ways to protect yourself from unfair assessments and rising taxes. CNN Personal Finance Editor Gerri Willis has today's "Top Five Tips."

Good to see you. Beginning with research, I suppose?

WILLIS: Right. Good to see you, too, Fredricka.

Tip number one, you want to hunt and gather. That means getting the facts that you need. First things first, you want that property record which you can get from the tax assessor's office. It's sometimes called an assessment record. Now this can be available online but you'll definitely want to get a hold of it and take a close look at the facts. Do they have the square footage? Are they describing your house in detail correctly? It all will make a big difference when it comes to your total tax bill. Remember, these cities are strapped for cash. They're re-assessing all the time. So this is something you want to keep an eye on quite frequently. WHITFIELD: And then you want to double check the facts that you gather.

WILLIS: Right. It's all about these facts. And having a problem, a mistake, that's easier to correct than something that has a problem with judgment. So check out the square footage. Make sure they're only counting square footage in your tax assessment that is heated and cooled. So if they've got an outer building that you're using for storage that is not heated and cooled as part of your overall tax assessment, uh-uh. It doesn't work. Go over it in detail. Make sure you understand it.

WHITFIELD: And then continue to ask the questions.

WILLIS: That's right. One of the things that they have to come up with is an assessment of the market value of your house. Now, Fredricka, you know as well as I do, this is something that can change month to month, particularly with this robust market we've seen. So you want to understand what they're basing that number on. Is it a neighborhood that's exactly like yours? Is it a house that is exactly like yours? Keep in mind these assessors typically don't come to your home to come up with these numbers. They typically do it from software.

WHITFIELD: And so why is the timing when you pose these questions and ask so critical?

WILLIS: Well, you want to appeal before your tax roll is certified. It's critical to do that because you're not going to get a whole lot of help if you don't.

WHITFIELD: And then be nosy about it all.

WILLIS: Talk to the neighbors. Has anybody else made a, you know, contested their taxes successfully? And if so, what exactly did they contest? You want to understand those details and often it's the neighbors who can tell you the most.

Fredricka, we're also going to checking out swing sets. Everything from safety to cost and maintenance this Saturday at 9:30 a.m. Eastern Time on OPEN HOUSE. Join us then.

WHITFIELD: All right. Look forward to that.

Thanks a lot, Gerri.

WILLIS: Thank you.

WHITFIELD: Well tuned into technology. Why teens today are fired up about being wired.

Plus, a slim victory for President Bush. But how did CAFTA really play out in the House of Representatives? A live report from the White House straight ahead.

(COMMERCIAL BREAK) WHITFIELD: Coming up on the half hour. I'm Fredricka Whitfield. Here is what's happening "Now in the News."

British Prime Minister Tony Blair says an historic pledge by the Irish Republican Army is "a step of unparalleled magnitude." The IRA announced this morning that it will end its decades long-armed campaign in Northern Ireland and order its units to forfeit their weapons.

Right now at the Johnson Space Center in Texas, NASA officials are getting ready to hold a briefing on the space shuttle Discovery. You're looking at live pictures right now of the robotic arm that is getting a closer look at any potential damage on shuttle Discovery after that fallen debris that took place on Tuesday. When that briefing takes place, we'll be bringing that to you.

One week after the failed bombings in London, British anti- terrorist authorities arrested nine men at dawn this morning. A nationwide manhunt remains for the three would-be bombers. So far a dozen people have been arrested in the case, including one man accused of placing one of the explosives.

Those concerns have rippled across the ocean to the New York subways. Authorities there say there are no plans to end the random searches of commuters' backpacks and briefcases. A civil liberties group says it may file a lawsuit over the security measure. But many legal scholars predict the city's new policy would survive a court challenge.

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