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CNN Saturday Morning News

Kofi Annan Visits Baghdad; Increased Pirate Activity Off Coast Of Somalia; Author Craig Smith's Book Says Fuel Prices To Rise; Telecommuting Initiatives; Condoleezza Rice Popular; Counterfeit Goods In China

Aired November 12, 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: A new word from Jordanian authorities about who triggered this week's deadly hotel explosion. It is Saturday, November 12, 2005. Good morning from the CNN Center in Atlanta. I'm Tony Harris.
BETTY NGUYEN, CNN ANCHOR: And I'm Betty Nguyen. A very interesting story and we'll get you up to speed on that.

We also have some other news to tell you about this morning. United Nations secretary-general Kofi Annan is in Baghdad. It is his first visit there since the U.S. invasion two years ago. He is meeting with Iraq's prime minister and other Iraqi leaders today. Now, Annan is calling for the country's political factions to unite ahead of parliamentary elections scheduled for mid-December.

Northeast of Baghdad, Iraqi police commandos carried out a raid in the center of Baquba today. They detained at least 360 people including the city's deputy mayor. Iraqi police say people are giving them information crucial to capturing terrorists, but Iraq's Islamic Party is condemning the raid and detentions.

Well, another case of bird flu. A little boy in Thailand has tested positive for the lethal strain of the virus. Thailand's ministry of public health says the 1-year-old is in Intensive Care. The toddler is the 21st person in Thailand to contract bird flu since last year. Thirteen of them have died.

And outside Charlotte, North Carolina, take a look at this. Part of the shuttered industrial plant is, yes, just a memory. Earlier this morning crews imploded a section of the old Pillowtex building. The seven-story facility, built in 19 months, came down in just a matter of seconds. Construction will begin on the site in December for the North Carolina research campus once all of the smoke clears itself out of the way.

HARRIS: Secretary of State Condoleezza Rice is expected to add Jordan to her Middle East itinerary this weekend. She's in Bahrain now, following a surprise visit to Iraq.

In Bahrain, Rice participated in a for forum to promote democracy in the Middle East. Rice used the meeting to criticize Syria for, what she called, arbitrary detentions of democracy activists in that country. Her expected detour to Jordan follows Wednesday's horrific triple suicide attacks at three hotels. At least 57 people were killed and more than 100 others wounded.

That brings us to today's new developments in the Jordanian terror investigation. Authorities there confirmed the role of al Qaeda in Iraq in the Amman hotel bombings, but a dispute other claims by other groups.

Let's go live to Amman where CNN's Brent Sadler is standing by with an update following his exclusive interview with Jordan's King Abdullah -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Thank you, Tony.

Jordanian's King Abdullah says his country is going to embark in a renewed offensive against al Qaeda sympathizers and sympathizers who follow Abu Musab al-Zarqawi, who he believes was responsible for the terror acts against three Jordanian hotels on Wednesday.

Now the king said that, in the past, his monarchy had been able, through their intelligence services, to foil many other attacks against this kingdom.

He recognized that in this circumstances, the intelligence did not succeed in blocking the bombers and that tactics would have to change, he said. That the intelligence service would have to be beefed up to meet the changing tactics because Zarqawi, it's pretty certain out here, sends four people across the border into Jordan possibly, says the king, from Syria or also possibly from Iraq itself. But the leads they're following up now suggests that the bombers could have got into Syria.

Three actual suicide bombers, the kind confirms, and the wife, the spouse of one of those attackers. Now, the king specifically said that the husband and wife team attacked the wedding party that resulted in heavy loss of life. He was particularly full of condemnation for that husband and wife team of suicide bombers.

This is what the king told me.

(BEGIN VIDEO CLIP)

ABDULLAH II, KING OF JORDAN: To walk into a lobby of the hotel, to see a wedding procession and to take your wife or your spouse with you into that wedding and blow yourself up. These people are insane.

(END VIDEO CLIP)

SADLER: It's the kind of insanity, says the king, that people who follow Islam, the battle to defeat, rather, the terrorist has to be engaged primarily within Islam. Its al Qaeda and their followers who are trying to destroy the image of Islam, says the king. And that Jordan will maintain its position at the forefront in the Arab world, he says, of working alongside international allies to combat the terrorists and to ultimately defeat them. Tony --

HARRIS: Brent Sadler for us in Amman, Jordan. Brent, thank you. NGUYEN: Last Saturday we were the first to tell you about an attempt by pirates to take over a luxury cruise liner off Somalia's coast. Well, over the past week, at least five other pirate attacks have taken place northeast of Somalia in the Indian Ocean.

The pirates are believed to be using high-speed boats like what you see right here in this picture, and officials are mobilizing a search for the pirate's mother ship. Fishermen have spotted the vessel drifting off Somalia's coast.

Well, pirates armed with machine guns and grenades attacked Seabourn's Spirit cruise ship last Saturday, but the crew was able to fend themselves off from those pirates.

And Andrew Mwangura, program coordinator for the Kenyan Seafarers' Association says, "These pirates could be a threat to air travelers as well."

(BEGIN VIDEO CLIP)

ANDREW MWANGURA, PROGRAM COORDINATOR, KENYAN SEAFARERS' ASSOCIATION (voice-over): According to information, they have AK-47s and a propelled grenade and some heavy artillery, and they have also, according to a picture, a photograph by our friends down there, they also have, I don't know, which gunman can bring down an airplane.

(END VIDEO CLIP)

NGUYEN: So there you have it. And you can watch cruise ship passengers recall their close encounter with the pirates by logging on to our Web site, CNN.com.

In the fight for Iraq, the United Nations secretary-general Kofi Annan calls for an end to the violence. Annan is meeting with Iraqi leaders during an unannounced one-day visit to Baghdad. And this comes as a car bomb exploded in a marketplace in the Iraqi capitol, killing at least four people.

CNN's Baghdad bureau chief, Kevin Flower filed this report from Baghdad just a short time ago.

(BEGIN VIDEOTAPE)

KEVIN FLOWER, CNN BAGHDAD CORRESPONDENT: Kofi Annan's unannounced visit here was his first to Iraq since the 2003 invasion.

(voice-over): It capped off what had been a week of high-profile visits here to the Iraqi capitol.

Friday U. S. Secretary of State Condoleezza Rice made her own visit. The message of these diplomatic trips, the need for Iraq to push forward in the political process. This just ahead of national elections scheduled for next month.

The hope here is the continued progress on the political front, and the setting aside of sectarian differences will take the steam out of the insurgency that's been raging in Iraq for the past two years.

A need underscored this morning, by yet, another deadly attack here in Baghdad. This time, a remotely detonated car bomb exploding in a crowded market area of a Shia neighborhood, killing four women and wounding 40 others.

These attacks highlight the need and the calls for the standing up of Iraqi security forces.

(on camera): Some success on that front. Early-morning raids by elite units from the Iraqi interior ministry's Wolf Brigade resulted in the capture of 360 suspected insurgents. No word on whether all of those people will remain in custody, but a positive sign that Iraqi security forces are, at least, taking on some more responsibility.

Kevin Flower, CNN, Baghdad.

(END VIDEOTAPE)

HARRIS: President Bush is firing back at critics of his Iraq war policy. In a Veterans Day speech yesterday, the president called accusations that his administration twisted pre-war intelligence deeply irresponsible. And his political opponents are firing right back.

CNN's Elaine Quijano is at the White House for us this morning with the latest. Good morning, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Tony.

That's right. President Bush, yesterday in Pennsylvania, blasted democrats for accusations they say that the administration twisted the pre-war intelligence on weapons of mass destruction in Iraq. Intelligence that we now know was wrong.

Now, the president's forceful response to that criticism comes as polls show sagging public support for his Iraq policy. Mr. Bush said Democrats' renewed attacks were hurting U.S. efforts in Iraq and he called their charges baseless.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I also recognize that some of our fellow citizens and elected officials didn't support the liberation of Iraq. And that is their right and I respect it.

As president and commander in chief, I accept the responsibilities and the criticisms and the consequences that come with such a solemn decision. While it's perfectly legitimate to criticize my decision or the conduct of the war, it is deeply irresponsible to rewrite the history of how that war began.

QUIJANO (voice-over): Now, after the president delivered that speech, Democrats quickly took aim. One of the them, Senator Ted Kennedy, who voted against the Iraq war resolution, criticized President Bush for mounting a political attack on Veterans Day, and then launched one of his own.

TED KENNEDY, SENATOR, D-MA: The best way that you honor the bravery and the courage of American servicemen and women is to tell them the truth. Tell them the truth about Iraq and have a real policy. A real policy, not one that's being made up every single day. A real policy that is going to ensure the beginning of the return of those brave men and women back to the United States of America. That is the best way to honor those veterans, not campaign sloganning and not campaign talk.

(END VIDEOTAPE)

QUIJANO: Now, it's interesting to note, in an example of the rapid response now being employed by the White House, that same afternoon White House press secretary Scott McClellan came out with this statement, in which he essentially said that, if Senator Kennedy had his way, Saddam Hussein would be now occupying Kuwait.

Now, look for the back and forth to continue in the coming days. The administration intends to clearly press ahead forcefully with its rebuttal of democratic criticisms.

In fact, tomorrow on the talk show circuit, the national security adviser, Stephen Hadley, is said to appear. And then on Monday, before the president heads to Asia, he'll be making a stop at Elmendorf Air Force base in Alaska, speaking to troops there. And we can expect to hear some of the same attack lines.

HARRIS: Wow. OK, CNN's Elaine Quijano at the White House for us.

Elaine, thank you.

NGUYEN: Across the country, drivers are still keeping a close eye on the prices at the pump. No doubt. I know I am.

Just ahead, I will speak with an oil industry observer about the possible role company executives might be playing in all of this.

HARRIS: And later, a story you'll see only on CNN. We saw it a few moments ago. Boy, this will get you. Rare video of life inside North Korea.

NGUYEN: Oh, yes. Eye-opener.

(COMMERCIAL BREAK)

HARRIS: It's 11:14 in the east, 8:14 in the morning out west. Good morning, everyone. Let us get you caught up with some of the top stories we're following for you this weekend?

Secretary of State Condoleezza Rice is expected to add Jordan to her Middle East tour in the wake of this week's hotel bombings in Amman. Rice is in Bahrain following a surprise Veterans Day visit to Iraq. And Israel, a memorial ceremony to honor slain Premier Yitzhak Rabin. He was assassinated ten years ago. Former President Bill Clinton and Senator Hillary Rodham Clinton are at the ceremony.

And finally, this pirate's story gets more alarming. Pirates struck several more times off Somalia's coast, after a foiled attack on a luxury cruise ship last Saturday that we told you about. Officials are working to mobilize a search for a so-called mother ship, which maybe launching high seas boats for the attacks.

Oil, gas and your wallet. Gas prices at the pumps are finally coming down after reaching painful highs this summer. But that relief might be replaced with more pain once your winter heating bills arrive. This week, Congress demanded answers from oil companies about their record high profits they're pocketing.

As CNN's Brian Todd reports, the companies' CEOs say don't blame them.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): After a summer of skyrocketing prices, production disrupted by nature's wrath, post- hurricane spikes and shortages, then news that Exxon Mobil, the world's largest privately owned oil company, posted the largest quarterly corporate profit in the history of American capitalism, Senators wanted some answers.

(BEGIN VIDEO CLIP)

PETE DOMENICI, SENATOR, R-: I believe, most Americans think that somebody rigs these prices. That in the process, somebody is getting ripped off. And they think it's them. Are you rigging the price of oil or is somebody rigging the price?

(END VIDEO CLIP)

TODD: Among the heads of five major oil companies, no one spoke up right away. Then ExxonMobil's CEO took a shot.

(BEGIN VIDEO CLIP)

LEE RAYMOND, CEO AND CHAIRMAN, EXXONMOBIL: Senator, that's an extraordinarily complex question that you've just asked. The facts are that the world's supply pool, many, many countries contribute to that and many companies operate in those countries.

(END VIDEO CLIP)

TODD: Senators on the Energy and Natural Resources Committee kept coming back, pressing the oil bosses on whether they've gouged the public. Zeroing in on reports that ExxonMobil jacked up the wholesale price of gas 24 cents a gallon in the first 24 hours after Hurricane Katrina.

(BEGIN VIDEO CLIP) RAYMOND: The directive was to minimize the increase in price, while at the same time, recognizing if we kept the price too low, we would quickly run out at the service stations and have shortages. So it's a tough balancing act.

(END VIDEO CLIP)

TODD: The CEO's persistently denied charges that they've been colluding to drive prices up. Some oil experts we spoke to agree. The spikes were market-driven, affected by disrupts in production, lack of refining capacity. But others questioned the timing. Wondering why prices have dropped so dramatically in recent weeks.

(BEGIN VIDEO CLIP)

BRAD PROCTOR, GASPRICEWATCH.COM: The slide has occurred all of the way to today when the congressional hearings are happening. It happened to trigger the idea that, you know, no need for any price hikes over the last ten weeks. If they were all working independently; you would think some of them would have to have price hikes in there.

(END VIDEO CLIP)

TODD: But the Exxon CEO said that most of the gas stations bearing the company's logo, the ones not owned and operated by Exxon, the corporation has no control. The individual dealers, he said, set the price at the pump.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: All right. You just heard it. Oil companies are staying they're not to blame for the soaring costs of gasoline this summer. But there's no disputing the fact that they've reap multibillion-dollar profits as prices went through the roof.

Craig Smith is the author of "Black Gold Stranglehold, The Myth of Scarcity and the Politics of Oil." He joins us now from Phoenix, Arizona.

Good morning to you.

CRAIG SMITH, AUTHOR: Good morning, Betty.

NGUYEN: Well, the first thing I want to do is get your reaction to what the oil execs had to say. Do you think there's price gouging?

SMITH: Well, I don't see any evidence of price gouging. I'm sure the attorneys general across the country would be quick to point it out and quick to bring legal action against the oil companies if it could be proven.

I think what you have to look at, Betty, is what we experienced during the hurricanes is nothing more than a simple supply and demand issue. We lost 83 percent of the production and capacity in the Gulf, that represented about 30 percent across the country, and we had a supply and demand issue.

I think it brings to light how important it is for us to pursue getting continued supplies here domestically so we don't have to depend upon the world oil markets.

NGUYEN: Good point there. Let me ask you about that supply and demand, because recently we've seen the price of oil come down some, especially at the gas pump, when we go to fill up our cars. So does that lead people to believe that there's some fluctuation there. There's some wiggle room to bring those prices down?

SMITH: Betty, what we're seeing is Economics 101. When you have a limited supply and an increasing demand, I don't care what commodity it is -- It could be sugar, flour or gas -- prices go up. If you have an increased supply and a decreased demand you have prices go down.

If you look at the energy information administration's numbers from the Department of Energy last week, or this past, week, we have seen unbelievable record supplies in inventories of crude, natural gas, gasoline, and as a direct result of having a plentiful supply and a decreasing demand, the prices have come down.

It has nothing to do with the oil executives on Capitol Hill. It has nothing to do with the grandstanding that we saw coming out of Washington, D.C.

NGUYEN: Is that all it was in your eyes? I mean, are going to see some real results from these hearings?

SMITH: No, Betty, unfortunately we're not. If these politicians really wanted to do something, to be positive for this nation, we'd find a way to balance the environmental concerns with the issues of going out and finding proven supplies, here domestically in America, where we wouldn't have had to turn oversees for supply during a Hurricane.

We could have gone to Anbar or the Gulf of Mexico or California or Florida. And gotten it for ourselves instead of having to go onto the world markets and pay top dollar for it.

NGUYEN: And then comes the issue of alternative fuel. But at this point, that's higher than the price of gasoline.

SMITH: Yes, it is. And let me tell you, we're very excited about alternative energy. We're not pooh-poohing that. We believe we should pursue wind, solar, hydrogen, fuel cells. But right now, they're economically not as cost effective as good old-fashioned oil.

And in the meantime, we have plenty of oil. I mean, that's what we try and point out in the book. Dr. Corsey and I did extensive research on the fact that we're not running out of oil in the world, no less in America. I mean, we talk about peak production in America, yet we stopped pursuing, looking for oil in America 30 years ago. Let's why it's beyond me, Betty, why we're not pursuing that loss.

NGUYEN: And as we do look long term, let's look at the price of gasoline. Because you say it could get up to $80 a barrel oil by next year. That translates into what at the gas pump?

SMITH: Well, probably some are above $4 a gallon for gasoline Depending upon the part of the country that you live in.

NGUYEN: Wow.

SMITH: But we don't need to get there. And look, I'm not alone in believing oil prices could go higher. Team Boom Pickings (ph) and many others believe that.

However, if we were to go into the Anbar, if we were to go off the coast of California, and we send a signal to the world, Betty, that said America will get real serious about finding oil, it would change the dynamic. The international energy agency has said, listen to this figure, in next 25 years, $17 Trillion will be spent worldwide pursuing energy. We should be in the forefront of that.

NGUYEN: Really, $17 trillion. Thanks for putting it in that kind of perspective for us. Hopefully, we won't be paying $4 to $5 a gallon at the gas pumps next year. But hey, you know, its scarce. Suspect supply and demand that's what this is all about.

SMITH: That's right. And if we let private industry take care of this versus the government, I can assure you we'll be far better off in the long run.

NGUYEN: All right. Craig smith, author of "Black Gold Stranglehold." We appreciate your time today. Thank you.

SMITH: Thank you, good being with you, Betty.

HARRIS: Well, it was a tough week politically for governor Arnold Schwarzenegger. Coming up, we'll tell you how he's going try to get away from it all.

And is sitting in front of your home computer one of the best ways to help solve our growing energy crisis? Don't miss that story still ahead on CNN's "SATURDAY MORNING."

(COMMERCIAL BREAK)

NGUYEN: A little music for your morning entertainment. Billie Holiday, What a little "Moonlight" can do.

HARRIS: Moonlight? Wait a minute, it's 11:30 in the morning in the east.

NGUYEN: Yes, it's 11:30 here on the east coast. I'll tell what a little moonlight can do. It's going to make things colder outside. BONNIE SCHNEIDER, CNN METEOROLOGIST: Oh, that's absolutely for sure. And out west, people are just waking up, starting their day, wondering how the weather's going to be.

(WEATHER REPORT)

SCHNEIDER: A thing of times to come, Betty -- Tony --

NGUYEN: Yes, it's that time of year, all right.

HARRIS: Sagging cold fronts and clippers and such.

SCHNEIDER: In time for thanksgiving, it will be getting colder.

NGUYEN: Thank you, Bonnie.

HARRIS: Bonnie, thank you.

Checking stories making news across America now. Funeral services are scheduled throughout the weekend in Indiana for several residents killed in Sunday's tornado. The twister struck parts of Evansville and surrounding areas. In one mobile home park community at least 19 people were killed. Hundred more were injured.

NGUYEN: Despite a month-old promise, FEMA has yet to reopen four of its biggest no-bid contracts for Hurricane Katrina work. And a promise to hire more minority-owned firms is still largely unfulfilled. Charges of favoritism helped prompt last month's pledge by FEMA acting director, David Paulison, after some companies got contracts right after Katrina struck. Now, officials with the Homeland Security Department, which oversees FEMA, now say the rebidding will not take place until February.

HARRIS: In Vermont, state police continue investigating a deadly shooting inside a police station. According to the report, a man being booked pulled a knife and attacked the officer. The officer allegedly then fatally shot the suspect in the struggle. The town's police chief says the shooting appears to be justified.

NGUYEN: California governor Arnold Schwarzenegger leaves tomorrow for Beijing, Shanghai and Hong Kong. He'll try to exchange his blistered campaign image for the role of celebrity statesman and trade promoter. The six-day trip comes after voters rejected all four of his year of reform ballot proposals on Tuesday.

Well, she is on the road to making a reputation for herself. We will look at Secretary of State Condoleezza Rice's growing role in the Bush Administration.

HARRIS: And later, a CNN exclusive, rare images of the hard life many lead in North Korea. We'll be right back.

(COMMERCIAL BREAK)

NGUYEN: Well, good morning, everybody and it is Saturday, November 12th. From the CNN center in Atlanta, I'm Betty Nguyen. HARRIS: Good morning, Betty. Good to see you. Stick around with me.

NGUYEN: I did. It's kind of hard some days, not today.

HARRIS: Good morning, anyone. Thank you for starting your day with us. Let's take a look at some of the stories making news right now. A Jordanian government official confirms a claim on a Web site that Wednesday's trio of fatal hotel bombings in Amman were the work of al Qaeda in Iraq. Jordanian officials also discount another claim on the same Web site that one of the suicide bombers was a woman. The blast killed at least 57 people.

Rioting continued in France for a 16th consecutive night. This is video from Strasbourg near the German-French border. Since the riots began, French authorities say thousands of cars have been torched and at least 2,000 people have been arrested.

President Bush is encouraging older and disabled Americans to enroll in a new prescription drug benefit program that will be offered through Medicare starting January 1st. Federal officials estimate it will save beneficiaries about 50 percent on prescription drugs. Critics are wary and say the program is too complex. Enrollment begins Tuesday and continues until May 15th.

NGUYEN: With plummeting ratings in the polls, the Bush administration is showcasing its rising star in the Middle East. That is Secretary of State Condoleezza Rice. She stopped in Bahrain today for a democracy forum following a surprise Veterans Day visit to Iraq. Rice will also visit Saudi Arabia, Israel, the west bank and Jordan. As Tom Foreman reports, this high-profile trip doesn't hurt her possible future in politics.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Just in time for Veterans Day, a bright light in the Republican blues, Condoleezza Rice is stepping out. Well, it's not all that, but the secretary of state was front and center for the White House in her surprise visit to Iraq.

CONDOLEEZZA RICE, SECRETARY OF STATE: I think if we just recognize how important it is that freedom continue to spread, then we will be able to sustain our effort because we know that nothing of value is ever won without sacrifice.

FOREMAN: The rise of Rice could be good news for President Bush, even as his own support crumbles. A new AP poll says almost six in 10 Americans don't think the president is honest. Secretary Rice however has largely kept clear of the CIA leak scandal, the hurricane fallout and troubles of the war. So Instead of having to defend herself on this visit, she was attacking suspected terrorist leader Abu Musab al Zarqawi.

RICE: What Zarqawi and his kind are most afraid of is that democratic forces will take hold in Iraq. FOREMAN: In time, Rice is among the nation's most ambitious women, in glamour, there she is between Paris and Angelina and in "Newsweek," other women are important because they are shown talking to Condi. The result, 59 percent of Americans have a favorable opinion of Rice. That's higher than the Vice President Dick Cheney, higher than Secretary of Defense Donald Rumsfeld and much higher than presidential adviser Karl Rove. Bill Schneider is CNN's political analyst.

BILL SCHNEIDER, CNN CORRESPONDENT: They like her. They really like her and at this point, the president needs anything he can get from anyone with a high approval rating.

FOREMAN: On the web, the efforts to make Rice run for president in 2008 are already well underway. They've already picked out an opponent and they whipped up a snappy theme song.

The rumble for Rice is still relatively low. You can barely hear it from this soldier. But it's there. You're my inspiration, she said. Amid the administration's many worries, that's something Secretary Rice and the White House can run with. Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

HARRIS: How are you feeling these days, gas prices, gridlock, road rage. Make you want to holler and throw up both your hands, maybe enough to make you want to quit your job, but going to work takes on new meaning at telecommuting hubs. Have you heard about these? Federal telecommuting initiatives are designed to ease dependence on oil and gas. Gary Nurenberg is live in Washington with the details. Gary, good morning.

GARY NURENBERG, CNN CORRESPONDENT: Well, good morning, sir. We are at a gas station on Capitol Hill, regular today $2.399, high test, $2.639. Just a couple of blocks from the capitol where legislators are trying to promote this idea of telecommuting or telework, after housing, transportation expenses are the number one item in the typical American family's budget and those numbers came in before the recent gas hikes after Katrina.

Within seconds from the Federal government, telecommuting is on the rise and with good reason. Americans now take 1.1 billion trips a day, about four trips for every person in the country. Now there are about 40 million Americans who are telecommuting. That's at least last year, compared to 10 years ago, it was only 8.5 million. Legislators liked the idea of telecommuting in part because it cuts dependence on foreign oil.

(BEGIN VIDEO CLIP)

REP. FRANK WOLF (R) VIRGINIA: The fact that our economy is based upon some of those countries is very, very dangerous. But also, it would save you as a consumer who purchases gasoline a good bit of money. So it's a savings for you as an individual, but equally important, it's good for our country to lower our dependence on foreign oil, particularly from countries that are very dangerous to us.

(END VIDEO CLIP)

NURENBERG: A Waldorf woman who is an accountant at the National Institutes of Health, Iris Bowman, works at a telecommuting center, a suburban office with everything she needs to do her job and cut her travel time.

IRIS BOWMAN, TELECOMMUTER: Aside reducing stress, spending time with my family and saving me money, in oil and gas prices. Those are the advantages of being able to telecommute.

NURENBERG: Legislators are serious about this. They are now ready to fine some Federal agencies $5 million a year if they can't prove that they're increasing telecommuting opportunities. Tony?

HARRIS: OK. Gary Nuremberg in Washington for us. Gary, thank you.

NGUYEN: Well, it is a CNN exclusive. We are taking you inside a place where few foreigners have gone and coming up, a rare, inside look at the lives of North Koreans and the hardships they face each day.

(COMMERCIAL BREAK)

HARRIS: The only people who know what it's really like to live in North Korea are North Koreans. The country has virtually no contact with the outside world. Tomorrow "CNN Presents" lifts the veil of this secret society with never before seen video. CNN special correspondent Frank Sesno has an excerpt on the story you'll see only on CNN, but a word of caution. Some of the images are disturbing.

(BEGIN VIDEOTAPE)

FRANK SESNO, CNN CORRESPONDENT: In the past year, a movement of dissident filmmakers, some motivated by money, others by the desire for change have used under cover cameras to expose a chilling picture of North Korea that's never been seen before. If they are caught filming, they will face prison or death.

Korean reporter Jong Kim (ph) is searching for some of these dissident cameramen and for the rare images they've captured and smuggled out of the country. Images like these. This is Yoduk, a concentration camp. Authorities deny it exists. The inscription above the entrance says give up your life for the sake of our dear leader, Kim Jong Il. Human Rights Watch estimates that there are 200,000 political prisoners inside North Korea.

These men and women are ferrying buckets of their own waste for fertilizer. On the city streets, another cameraman captured these images. Homeless and hungry children forced to fend for themselves steal from the markets. A pick pocket is caught. And justice is carried out on the street.

This is rice donated by the U.N.'s world food program. It should be rationed out directly to the people but instead, it is sold for profit in the street market. Only the well off can afford it, leaving the rest with nothing. This woman is lying in the street dead. North Korean refugees say it's a common sight.

(END VIDEOTAPE)

HARRIS: Wow. You do not want to miss this remarkable documentary again. It's only on CNN. "Under Cover in the Secret State" premieres tomorrow night on "CNN Presents" beginning at 8:00 Eastern. That's 5:00 Pacific.

NGUYEN: All right. Time now to check some of the headlines all around the globe today.

HARRIS: Pirates continue to plague the waters off Somalia. They're attempting to seize more ships. Shanon Cook has more from our international desk. Shanon, good morning.

SHANON COOK, CNN CORRESPONDENT: Good morning, thank you guys. When you think of pirates, you might think of Johnny Depp cracking jokes in the blockbuster film "Pirates of the Caribbean," but these pirates are not so funny. We've learned that.

Officials are in search of a ship off the coast of Somalia. It's being called a mother ship and it appears to be at the center of increasing pirate attacks in the region. This mother ship is believed to launch speedboats that prowl the waters of the Indian Ocean looking for targets. Those targets are usually merchant ships carrying supplies.

It has been, this mother ship has been spotted a few times since July. Modern-day pirate attacks off the coast of Somalia becoming a really frequent problem. There have been at least six attacks in the past week and that includes an attack on a luxury cruise ship last week. In that incident, pirates fired rocket propelled grenades but the ship managed to outrun the attackers' boat and even though most apprehended vessels actually do manage to escape, we are told that seven ships and their crews are now being held captive by pirates.

So what's being done about this? Well, in response to the growing threat, some shipping companies are calling on the UN to step in and help and officials are also warning merchant ships to stay away, to stay at least 200 nautical miles away from the Somali coastline.

Now, let's move on to another story, to Asia where there's a new case of avian flu. A 1-year-old toddler in Bangkok has tested positive for the deadly H5N1 strain. He's in a hospital in Bangkok at the moment. It's believed he's contracted the disease from playing with diseased chicken. Those chickens later died. Thai public health officials say that this young boy is recovering in an intensive care unit. Since 2004, 21 people in Thailand have contracted bird flu.

So this isn't the first case and 13 of those 21 have died. In total, all over Asia, more than 120 people have been affected by this disease and half have died. Now, Betty, moving on to something kind of lighter, but not totally lighter. How safe would you feel if you had a few cats acting as your bodyguards?

NGUYEN: Cats? Not ferocious dogs, but a cat.

COOK: No, no. I'd take a ferocious dog as a bodyguard. In India at a police station, they're actually calling on felines to help them ward off some deadly predators. This police station is kind of a rundown bungalow. It's suffering from an infestation of poisonous reptiles. Snakes in particular and so they're basically trained, nine kittens to chase after the snakes and catch them and kill them.

NGUYEN: Well this, is a serious matter, though because these snakes have actually killed, haven't they, Shanon?

COOK: Exactly. Police say that three people have actually been killed from being bitten, a police officer, a cleaner at the station and also the daughter of one of the police officers. So those cats are obviously needed.

NGUYEN: I was going say in that case, I think I would take a cat. Bring him on. Thanks, Shanon.

COOK: Thank you.

NGUYEN: You can't wait for the Beijing Olympics, you say? Well, next, find out why you won't find this Olympic gear on just any street corner.

(COMMERCIAL BREAK)

NGUYEN: The summer games in Beijing are just 999 days away. Thousands of people are expected to visit China and pick up authentic Olympic merchandise and souvenirs, of course, and CNN's Tara Duffy explains how authorities are making sure they don't get ripped off in a place infamous for counterfeit products.

(BEGIN VIDEOTAPE)

TARA DUFFY, CNN CORRESPONDENT (voice-over): The latest movies on DVD for little more than a dollar. No filming allowed because they're bootleg. Designer bags going for $20.

UNIDENTIFIED MALE: No, no, no.

DUFFY: No filming the knockoff merchandise, please. Nike sweatshirts for under $10. No filming wanted here either because they're not the real thing. The goods on sale here are just a stone's throw from the U.S. embassy in Beijing. Openly on display, days before Attorney General Alberto Gonzalez comes to the Chinese capital to discuss protecting U.S. company's copyright and trademarks.

(on-camera); In this market, you can get almost any brand you think of, Nike, Adidas, Puma, Chanel, Prada, but they're all rip-offs. One thing you can't get even if you ask for it, is Olympics merchandise.

(voice-over): For that you have to come here, to one of the designated official Olympic merchandise stores. Every item from T- shirts to pens to towels and pins have an official tag. And just in case you stumble across the goods elsewhere, this poster explains how to verify the tag's authenticity.

JIN YINING, OLYMPIC MERCHANDISE RETAILER (through translator): This is mainly to fight against rip-offs in the market. The Olympic committee not only designates the store, but they also set the price.

DUFFY: Chinese authorities are taking active caution to protect all things Olympic. There are hefty fines for anyone who uses the logo without permission and unlike many rules in China, this one is being enforced. .

After unveiling the five, yes five, Olympic mascots, there's even more for Beijing authorities to protect from the rings to the logo and more. It's all key to the financial success of the Beijing Olympic games.

SCOTT KRONICK, OGILVY: That's their equity. I mean that's what they're using to attract sponsors and they've been promising that they'll protect the sponsor's engagement with them. So you are going see that they will do everything in their power to protect the sponsors who signed up to be Olympic sponsors and partners and suppliers.

DUFFY: But even some of those, like Olympic partner Adidas continue to see knockoffs of their clothing on sale in shops in Beijing. The thousand day countdown to the 2008 games is now underway, but the heat is on Beijing to prove it will be as dedicated a player in defending international brands in China as it is in defending the Olympic goods. Tara Duffy, CNN, Beijing.

(END VIDEOTAPE)

NGUYEN: So the countdown and the crackdown both are on. Tony, hey, time's up. We want to thank you, the viewers for watching today. We'll see you back here tomorrow morning.

HARRIS: And Fredericka Whitfield. Do you have everything?

FREDRICKA WHITFIELD, CNN CORRESPONDENT: I'm getting organized here.

HARRIS: It is up next. Have a great day.

(COMMERCIAL BREAK)

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