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CNN Live Today

New York City Subway Alert; President Bush Meets With Hungarian Prime Minister

Aired October 07, 2005 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And here's what's happening "Now in the News."
Six U.S. Marines have been killed in Iraq by roadside bombs. Four Marines died near Karma, two others were killed while patrolling in Qaim. Both incidents took place in Sunni-dominated Anbar province, where Marine and Iraqi forces are continuing their anti-insurgent offensives today.

The Labor Department says the American economy lost jobs last month for the first time in more than two years. On the upside, it was less of a loss than analysts expected after hurricanes Rita and Katrina. The net decline of jobs for the month total, 3,500.

Mohamed ElBaradei and the U.N. nuclear watchdog agency he heads have won this year's Nobel Peace Prize. ElBaradei and the International Atomic Energy Agency were honored for their disarmament efforts. ElBaradei calls the win a shot in the arm as the agency deals with nuclear issues in Iran and North Korea.

An early morning fire in Lawrence, Kansas, sent people jumping from second and third-floor windows. At least 19 people wound up at hospitals after the blaze at The Boardwalk Apartments. They suffered burns, smoke inhalation and broken bones. The cause of the fire is still under investigation.

Good morning. And welcome, everyone, to CNN LIVE TODAY.

It is 11:00 a.m. here in Atlanta, Georgia; 8:00 a.m. in San Diego, California; 7:00 p.m. in Baghdad.

From the CNN Center in Atlanta, I'm Tony Harris, in for Daryn Kagan.

Today, New York's morning commute under heavy scrutiny and security today, including a portion of Penn Station being shut down. That after what officials call a specific threat against the system's subway system. But homeland security officials appear to be downplaying the credibility of the threat.

CNN's Alina Cho is monitoring the situation in New York. Pentagon Correspondent Barbara Starr is standing by in the nation's capital.

We begin with Alina Cho at Penn Station.

Alina, what is the latest there?

ALINA CHO, CNN CORRESPONDENT: Well, Tony, we have learned in just the past few minutes from law enforcement sources that authorities are looking at what they are calling a soapy green substance in a soda can. The New York Department of Environmental Protection is testing it right now. And we have learned that it is that that prompted authorities to seal off the main entrance here at Penn Station, which is one of the largest subway stations in all of New York.

Here's what you will find if you go inside, a heavy police presence, including at least four people in HazMat suits. We are told that the area around the Amtrak ticket counter, which is just a small area, about 30 by 30 feet, is still cordoned off. But all Amtrak trains, we are told, are running smoothly. And all passengers are being allowed in and out of the station.

Now, of course, this comes on the heels of yesterday's news conference. City officials and the FBI jointly announced at that time that there was this first specific threat against New York subways. At the time, city officials said they would be acting out of an abundance of caution. And it appears that is exactly what they are doing right now.

Tony, I know you find this hard to believe, but many, many commuters we spoke to this morning say they do believe that New York will eventually be the target of a terrorist attack. But they say they are not going to let this change their routine. And for now, Tony, that includes riding the subway.

HARRIS: And Alina, stay with me as we take a look at new pictures in to CNN of Mayor Bloomberg, probably making the point that you just made very dramatically, Mayor Bloomberg taking the subway system in New York this morning. It is something, Alina, that he said he absolutely was going to do today, didn't he?

CHO: Yes, he absolutely did. In fact, he said yesterday he wouldn't have any reservations about riding the subway.

You're talking about a billionaire mayor who is not used to this mode of transportation. He said he wouldn't exactly call it pleasurable, but he certainly has no reservations about riding the subway. He said he has no reservations about letting his daughters ride the subway. And that's exactly what he did this morning -- Tony.

HARRIS: And Alina, just to -- just to follow up very quickly, are you getting the same word that we are, that at some point maybe before noon we might hear something from the mayor, perhaps some kind of an update on the situation at Penn Station?

CHO: Yes. Of course, we were rushing around trying to find out what the latest was going on just behind me, Tony, but I think I read...

HARRIS: Yes. CHO: ... a quick note from our New York assignment desk that said that the mayor will be speaking to reporters at another previously scheduled event at 11:00 a.m. Eastern Time, which is right about now. But you can be sure that he will be answering questions about this.

HARRIS: And we have a shot up right next to you there of the podium as folks getting ready for that statement. Alina Cho, we appreciate it. Thank you.

"Doubtful credibility." That's how a Homeland Security Department official characterized the New York threat. But New York's mayor, Michael Bloomberg, said he and other city officials got the news of a "specific threat" against the subway system from the FBI. The city's police commissioner says they were told subways could be targeted by terrorists in coming days.

In Washington, an FBI spokesman says the bureau has not been able to corroborate or discount the information. An investigation is under way.

As we reported, law enforcement sources say the New York subway threat information came from Iraq. We were told based on that intelligence, a highly-classified operation was launched in a town south of Baghdad. And three al Qaeda suspects were nabbed.

For that part of the story, we turn to our Barbara Starr, live from her post at the Pentagon.

Barbara, good morning.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Tony.

Well, it does now appear by all accounts the threat to the New York City subway system does trace back to Iraq. What a number of defense and military officials are now saying is that intelligence was gathered -- that's all they'll say about it -- over the last couple of weeks.

That intelligence apparently gathered in Iraq was the initial information of the threat to the subway system. As to its credibility or its truthfulness, that is for the intelligence community to decide. But that was gathered by U.S. military officials.

That then, on Wednesday night, let them to a raid in a place called Musayyib. That is south of Baghdad.

They went there to look for at least three individuals by name. They found them. They believe they found an al Qaeda cell in Iraq, essentially, that was possibly planning additional attacks outside of Iraq, possibly in the United States. Officials say this raid was between -- led by U.S. and Iraqi security forces in coordination, and there was also support from the U.S. intelligence community.

Now, all of this comes as a second story about al Qaeda is unfolding. Not directly related, but U.S. officials say they have indeed come into possession of a key letter from Ayman al-Zawahiri, who is Osama bin Laden's number two in al Qaeda, a letter that he wrote to Zarqawi, the leader of al Qaeda in Iraq. That this letter dates from basically the July time frame, and it lays out the current al Qaeda strategy, priorities and problems, if you will, that Zawahiri feels he is having.

He apparently talks in this letter, according to U.S. officials, about the fact that al Qaeda is resigned to the fact it has lost Afghanistan, that many of its key leaders are captured and killed, and that their communications are so disrupted they don't know what's going on, and that they need money.

And finally, according to U.S. officials, Zawahiri says that he is urging Zarqawi to change tactics somewhat, that it is alienating the Muslim world to see so many people of the Islamic faith also being killed in insurgent movements. And he suggests that Zarqawi perhaps needs to tone it down, specifically in relation to the beheadings that are broadcast on western media outlets. It is not clear, of course, whether Zarqawi is paying any attention to this -- Tony.

HARRIS: CNN Pentagon Correspondent Barbara Starr.

Barbara, thank you.

CNN's "Security Watch" keeps you up to date on safety. Stay tuned day and night for the most reliable news about your security.

OK. We want to take you now to some new tape just in to CNN from an Amtrak spokesperson giving us an update, maybe some clarification on the situation in New York City at Penn Station.

Let's give a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Again, the substance is unknown. It was no dafrnger to anyone at any time. There was train service, and station was not affected at all, nor were any parts of the station evacuated.

Any limiting of space was due to a police request so they could conduct their search and their investigation properly. And again, they are investigating the -- and testing the substance. And it's still under investigation. And again, I will repeat there was no danger at any time to anyone at all.

Thank you.

(END VIDEO CLIP)

HARRIS: OK. An Amtrak spokesman there giving us an update on the situation. We have a line now on what at least is being tested.

It is a soapy green substance. That's all we really know. Let's hear more from the spokesperson from Amtrak. OK. I thought we were going to go back to the spokesperson from Amtrak. But let's move forward now, and let's take you now to the White House, where the president has been meeting with the prime minister of Hungary.

He took a couple of questions about, first of all, his Supreme Court nominee, Harriet Miers, and then the situation in New York City today. Let's listen in.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And, Mr. Prime Minister, thank you for brining up the issue. I assured him that I will continue to work with Secretary Rice to put a plan in place, to cooperate with Hungary and to have a plan in place that is a fair and reasonable plan for the people of Hungary.

All in all, I found it to be a great visit.

The visit, by the way, started yesterday when his good wife and my wife had a strong visit. She laid the groundwork for this diplomacy that's being conducted today, and she did a great job.

So welcome to you and your wife here to America.

FERENC GYURCSANY, PRIME MINISTER OF HUNGARY (through translator): Mr. President, ladies and gentlemen, let me use my mother tongue, mainly because I would like all the Hungarian people to understand why I'm sitting here in the Oval Office.

Please understand me. Just keep a Hungarian's sometimes his viewpoint.

So we came to the United States to strengthen our friendship and our alliance. We came to emphasize once again that we have joint matters, joint affairs in this world to do.

And maybe the two countries have different possibilities, but we have equal responsibility to sustain stability and peace in the world and to represent the case of democracy.

Now in these matters, the United States and Hungary are not just allies, but are also good understanding friends.

We have reinforced our former agreement about our presence in Iraq and Afghanistan. We have not introduced any new elements to that deal, though.

I think we're also delighted to see that besides security elements, the cooperation, the partnership between the United States and Hungary are more and more about business and good relations.

And also American investors, the largest American businesses have played a key role in making sure that Hungary has reached a record high in terms of foreign capital influx over the past year.

Many similarities and some differences between our two countries. But there is one thing where we are completely identical in our ideas. Both President Bush and myself want to make sure that our people in the United States and in Hungary believe in security; that they have peaceful lives; prosperity; democracy. And these are the key issues really.

Many thanks, Mr. President.

BUSH: Thank you. Thanks for coming.

A couple of questions.

QUESTION: The criticism from some conservatives of Harriet Miers is continuing, getting rather sharp, as you know. Are you willing to rule out ever letting her nomination be withdrawn?

BUSH: Harriet Miers is an extraordinary nominee. She is a very bright woman. She is a pioneer in the law in Texas. In other words, she was the first woman hired at her firm, first partner of the firm. She's the first head of the Texas Bar Association.

She has got a record of accomplishment that is extraordinary in my judgment. She is a woman of deep character and strength.

She didn't come from the bench. But a lot of other people didn't come from the bench when they were named for the Supreme Court. I would ask people to look at Byron White, for example, or Judge Rehnquist himself.

And I'm confident she's going to be a Supreme Court judge who will not legislate from the bench and will strictly interpret the Constitution. And I am incredibly proud of my friend being willing to take on this task. She's going to be a great judge.

QUESTION: So you're ruling it out -- any withdrawal?

BUSH: She is going to be on the bench. She'll be confirmed. And when she's on the bench, people will see a fantastic woman who is honest, open, humble and capable of being a great Supreme Court judge.

QUESTION: Have you set a deadline for the visa issue to be solved?

GYURCSANY (THROUGH TRANSLATOR): We agreed on a road map which makes sure that Hungarian people can really perceive that it's easier and more equitable to have access to American visas.

I could feel that Mr. President has a very clear understanding about why this is important for Hungarians. And I'm also completely sure that we will achieve the fastest possible progress which is allowed by legislative background and laws here in the United States.

BUSH: Good answer.

Steve?

QUESTION: How significant was the threat against New York yesterday?

BUSH: I'm getting a little older, Steve. I can't hear you.

QUESTION: Sorry. Did New York City overreact to the threat yesterday? And how significant was that threat?

BUSH: Well, our job is to gather intelligence and pass them on to local authorities, and they make the judgments necessary to respond.

The level of cooperation between the federal government and the local government is getting better and better, and part of that level of cooperation is the ability to pass information on. We did and they responded.

QUESTION: So you don't think they overreacted?

BUSH: I think they took the information that we gave and made the judgments they thought were necessary.

BUSH: And the American people have got to know that one, we're collecting information and sharing it with local authorities on a timely basis, and that's important.

QUESTION: (SPEAKING IN HUNGARIAN)

As far as we know, you have gotten an invitation from the Hungarian government for next year for the 50th anniversary of the 1956 revolution. So would you accept this invitation.

GYURCSANY (THROUGH TRANSLATOR): We certainly spoke about the invitation. 1956 is a huge achievement for the Hungarian nation. And the impact of that goes far beyond the borders of Hungary.

We certainly want to make sure that our friends, friends of democracy, are there next year in Hungary.

Therefore, I extended an invitation to the president for next year to Hungary. And I'm completely certain that he will come.

BUSH: He did extend the invitation. And I appreciate the invitation, because 1956 means a lot to a lot of Americans. A lot of Americans came from Hungary to live here after the '56 incidents. They can trace their history to our country because of what took place in Hungary.

Plus a lot of Americans followed the incidents in 1956 and appreciated and respected the courage of folks who are willing to stand up for freedom and liberty.

See, 1956 says to us there are key moments in history when ordinary citizens are willing to defend the right for all to be free. And so it's an important event.

I told the prime minister I'm not my own scheduler. I will pass the word on how important this event is. And I will look very carefully at the invitation.

Listen, thank you all.

Mr. Prime Minister, thanks for coming. Appreciate it.

HARRIS: The president wrapping up a meeting with the prime minister of Hungary. The two men talked about strengthening ties between the two countries and working together to spread peace in the world, and spreading democracy.

And then you saw the president take a couple of questions, one about his Supreme Court nominee, Harriet Miers. And there still seems to be controversy about that pick, particularly from conservatives.

The president offering another defense and saying that her name will not be withdrawn. Some speculation on that front.

And then there was a question about whether New York City is overreacting to the threat information that was shared with the city officials by the government and folks in Homeland Security. And the president responding, saying that officials in New York are making the judgments they feel are necessary.

Before the president, we heard from the spokesman from Amtrak, who was telling us about an investigation and testing of a soapy green substance.

Let's go to Homeland Security Correspondent Jeanne Meserve, who can give us a sense of what those test results were.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: That's right, Tony. I just talked to a police source who told me that this substance was in a soda can. He specified that it was a Pepsi can.

Coming out of this was a green bubbly substance. He said analysis shows that this appears to be a green dye mixed with sodium hydroxide, which he describes as a chemical which creates a foaming action.

Bottom line, this appears to have been a hoax in New York's Penn Station. This isn't the first time this kind of thing has happened.

Of course you'll remember after the anthrax attacks, there were many incidents which turned out to be hoaxes, people playing jokes, playing pranks with substances that looked like anthrax. And this case apparently another hoax, this one involving a green foaming substance which appears to be harmless -- Tony.

HARRIS: OK. I guess in the days ahead, maybe later today, we'll talk about whether or not this was an overreaction. But at least right now, the news to report is that this substance is no threat to public safety.

MESERVE: That's correct. I can tell you, also, when it comes to how people weighted this information, and whether or not it was an overreaction, I did have a conversation with a law enforcement source this morning who expresses some mystification at Washington officials describing the information which led to the threat alert status in New York as being of doubtful credibility.

The law enforcement source with whom I spoke said that this information came from an individual. The initial information came from an individual who has provided credible information in the past, and that this information -- this individual was polygraphed about this information relating to New York transit. And that this individual passed the sections of the polygraph relating to New York transit.

He also says this individual's information was what led to the raid that Jamie McIntyre reported last night...

HARRIS: Right.

MESERVE: ... south of Baghdad, which netted three arrests. This individual's point being, if it resulted in this highly-secret operation, and these arrests, clearly there must have been something to it.

So -- and this individual also pointing out that it isn't that often that you see the FBI and New York and the New York City Police Department standing shoulder to shoulder, making an announcement. This person standing by New York's decision to go ahead and ratchet up security this morning in New York subways.

HARRIS: Jeanne Meserve.

Jeanne, thank you.

MESERVE: You bet.

HARRIS: We're standing by to hear from New York City Mayor Michael Bloomberg. What will his reaction be to some suggestions that perhaps this was an overreaction? We'll find out when he steps to the podium and offers his comments.

We're expecting that within the hour. And when it happens, we will take you to New York City live.

We'll be back with more CNN LIVE TODAY right after this.

(COMMERCIAL BREAK)

HARRIS: Once again, live pictures now as we stand by waiting for comments from New York City Mayor Michael Bloomberg. A busy day for the mayor. A lot on his plate any day when you're the mayor of New York City, but particularly the last couple of days with a threat to the subway system that was described as specific and directed right at the New York City subway station.

This was the scene for most of the morning as men in HazMat suits, those moon suits, investigated what turned out to be a green soapy substance that turned out to be not much of a threat at all, something in a soda can that -- not much of a threat at all to public safety. What looks to be a hoax at this point.

But the mayor was def determined not to see his city shut down. So much so, that he vowed to get on the subway this morning as a very visible sign to New Yorkers that life goes on, I am going to get on the subway system to demonstrate firsthand that the system is safe, that we are taking all necessary precautions to assure your safety.

There you see the mayor of New York City, a billionaire, on the subway with regular straphangers going to work in New York City.

So we are standing by any moment now to hear the comments specifically about the situation in New York. And when we get to those very specific comments about New York City, and how the city has responded to this terror threat, we will dip in and listen.

More CNN LIVE TODAY right after a break.

(COMMERCIAL BREAK)

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