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CNN Live Today

Israeli-Based Company Endorses Dubai Ports World; Port Security; Landmark Nuclear Deal Between United States and India

Aired March 02, 2006 - 10:59   ET

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

CAROL LIN, CNN ANCHOR: The second hour of CNN LIVE TODAY begins right now. In fact, here's a look at what's happening right "Now in the News."
Firefighters say they have gained control of a rash of wildfires in southern Oklahoma. The fires blackened about 8,000 acres and destroyed 30 to 40 homes. Authorities say one man is in custody on suspicion of arson and they're searching for someone else.

A former nurse and serial killer faces his victim's families in a New Jersey courtroom. A sentencing hearing is under way for Charles Cullen. He faces life in prison for 22 murders in New Jersey alone. He's going to be sentenced later for seven murders and three attempted murders in Pennsylvania.

Violence across Iraq has killed more than two dozen people over just the last 24 hours. In Baghdad, two people died when their minibus was hit by a roadside bomb. Ten Iraqi security forces were killed when gunmen attacked a checkpoint north of the capital.

And a local official tells CNN three people have been killed in fighting between insurgents and U.S. forces in Ramadi. He says three others were wounded.

A U.S. diplomat and at least three others were killed today in a suspected suicide bombing in Karachi, Pakistan. Authorities say the suicide car bomber apparently crashed into the diplomat's vehicle in a hotel parking lot near the U.S. consulate. The attack comes just two days before President Bush's visit to Pakistan.

Good morning and welcome to CNN LIVE TODAY.

It's 9:30 in New Delhi, 8:00 a.m. in Los Angeles. From the CNN Center in Atlanta, I'm Carol Lin in for Daryn Kagan.

Up first this hour, just in to CNN. There is a new development in the controversial deal that would allow an Arab company to manage six U.S. ports. We have word of a major endorsement from an unlikely source, an Israeli-based company.

CNN's Wolf Blitzer joins us now with a CNN exclusive -- Wolf.

WOLF BLITZER, CNN CORRESPONDENT: Thanks very much, Carol.

CNN has learned the chairman of the board of Israel's largest shipping line is now strongly endorsing the takeover of these six major U.S. ports by Dubai Ports World. In a letter to Democratic Senator Hillary Clinton of New York State, Idan Ofer, the chairman of ZIM Integrated Shipping Services, Ltd., says he wants to put his support for the deal on the record.

He says, "ZIM has been pleased to have DP World," in his words, "as our business partner, supporting our operations by providing services at key marine terminals around the world, including in the United Arab Emirates." And he goes on to say this in the letter -- and I'll read it precisely -- "As an Israeli company, security is of the utmost importance to us and we require rigorous security measures from terminal operators in every country in which we operate, but especially in Arab countries. And we are very comfortable calling at DP World's Dubai ports."

"During our long association with DP World, we have not experienced a single security issue in these ports or in any of the terminals operated by DP World, and have received exemplary service that enhances our efficiency and the smooth running of our operations."

Mr. Ofer goes on to write, "DP World has been an industry leader with regard to security and works closely with us on an ongoing basis to maintain the highest security standards in all its terminals around the world. We are proud to be associated with DP World and look forward to working with them into the future."

That is signed "Idan Ofer."

After receiving a cope of this letter, I called Mr. Ofer in Tel Aviv earlier this morning. He confirmed his authenticity and explained his motivation in sending the letter to Senator Clinton. He said he was also, by the way, now planning to write a similar letter to Senator Chuck Schumer, also from New York State. He was anxious both of them, as leading critics of this deal, know of ZIM's longstanding relationship with DP World.

Mr. Ofer also went on to say of DP World -- and let me give you, Carol, a few more quotes, what he says of these -- of this company.

He says, "These are first-class people. They are excellent. They are very good people to deal with."

He goes on to say, "I can't quite understand this upheaval in the U.S. At the end of day, security and anti-terrorism are in the hands of homeland security and the security services." He says that ZIM is very proud to have this relationship with DP World.

Clearly, a significant development now, Carol, because it comes at a time when many critics of this deal are pointing to the Arab boycott, the United Arab Emirates' official participation in that boycott, and they're saying why should the U.S. be granting access to these six major ports to a firm that boycotts Israel, that boycotts Israeli companies. But clearly, that is not the case. DP World having this longstanding relationship with ZIM -- Carol.

LIN: So Wolf, what do you think the impact of this letter is going to be? Doesn't it undercut critics of the port deal such as Senator Hillary Rodham Clinton?

BLITZER: It certainly would appear to be so. This is an Israeli company. It used to be a government-owned Israeli company. A long history in Israel of ZIM going back to Israel's establishment back in 1948, but several years ago it went private.

It's now a privately-owned Israeli company with subsidiaries all over the world, a major shipping company. And they're now saying they're proud to be associated with DP World.

In fact, Mr. Ofer told me he has a very good personal relationship with the top executives of DP World. They've worked closely on several business ventures over the years.

So, you're right, it would tend to give strength to those who are concerned, who say they've been concerned about the United Arab Emirates' sort of official boycott of relations with Israel.

LIN: Right. An unusual source. I mean, you mentioned this boycott. Does DP World allow Israeli ships into the port of Dubai?

BLITZER: The answer is yes. They don't make a big deal out of it, and usually the ports, I'm told -- the ships that come into Dubai itself from ZIM are subsidiaries of ZIM. They don't necessarily have an Israeli flag flying on it.

But they do visit Dubai. They do visit other Arab ports as well. Israel has had this on again-off again relationship with several Arab countries that don't have formal diplomatic relations with Israel. Only Jordan and Egypt have peace treaties with Israel, formal diplomatic relations.

But Israel has had on and off again relations with Qatar, with Morocco, with Tunisia. And clearly now with the United Arab Emirates as well.

LIN: Wolf, do you know if ZIM's opinion and its relationship with DP World was known in the initial security review of DP World's acquisition?

BLITZER: I don't know whether that in the CFIUS review, as it's called, the Committee on Foreign Investment here in the United States, whether the whole relationship between Dubai Ports World and Israel, or ZIM, if that ever was discussed by any of the principals who were representing this interagency review process. I don't know if that was an issue, but I do know that it's been well known over the years that the Israelis do have some sort of business deals with several of these Arab countries that don't have formal diplomatic relations with Israel.

LIN: Wolf, thank you very much for breaking this news on the program.

BLITZER: Thanks, Carol.

LIN: More on "THE SITUATION ROOM" later. But the truth is, many foreign companies run ports across this country. CNN Homeland Security Correspondent Jeanne Messerve takes us to the docks for a closer look at how security is handled.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): It is 7:00 p.m., and the second shift at the SSA terminal at the Port of Los Angeles-Long Beach is in full swing.

This port handles close to half the containers entering the U.S. If a terrorist strike closed it, there would be a chokehold on the U.S. economy.

(on camera): We're about 13 stories off the ground in a crane. In the next 24 hours, this crane and the others like it at this port will move about 13,000 containers on and off ships.

(voice-over): But most of the terminals here are leased to foreign companies from China, Taiwan, Korea, Israel, and elsewhere.

A former Coast Guard commander, Stephen Flynn, worries not about who runs the system, but the system itself.

STEPHEN FLYNN, FORMER U.S. COAST GUARD COMMANDER: The core problem is, we haven't set minimum standards, who has access to the terminal, for basic physical security in it, and we're not looking out into the supply chain enough, putting in place systems where we can validate, what comes in is legitimate and what is illegitimate.

MESERVE: SSA is an American firm. It used to lease this terminal outright, but now partners with a Swiss shipping company.

JOHN DIBERNARDO, VICE PRESIDENT, SSA TERMINALS: Virtually nothing has changed. We operated the same way before as we do today.

MESERVE: SSA still handles security at its terminal.

UNIDENTIFIED FEMALE: All right, Trevor (ph), you're good to go.

MESERVE: It hires the guards. It checks the workers, the drivers and trucks that come and go around the clock.

UNIDENTIFIED FEMALE: Yes. I got a shipment to transport here.

MESERVE: The U.S. Coast Guard has overall responsibility for port security. And it has approved SSA's security plan. But the system uses drivers licenses, not biometric I.D. cards, and even the security personnel are not tightly screened.

CAPTAIN PETER NEFFENGER, U.S. COAST GUARD: There are no specific background checks that are done on terminal personnel at this time.

MESERVE: For operational reasons, the Coast Guard briefs foreign firms on some aspects of port security. And that worries the man who, until recently, was chief of port police. NOEL CUNNINGHAM, FORMER LOS ANGELES PORT POLICE CHIEF: Everything from -- from tactical plans to alert status, a review of existing security plans, you name it.

MESERVE: But the man in charge of port security insists that the most crucial information is closely held.

NEFFENGER: Any sensitive security matters, any -- any national intelligence, is -- is kept pretty close to the vest by those agencies responsible for -- for maintaining that. So, no, we don't share.

MESERVE: The federal Customs and Border Protection Agency screens some of the cargo that arrives here.

KEVIN WEEKS, LOS ANGELES DIRECTOR OF FIELD OPERATIONS, CUSTOMS AND BORDER PROTECTION AGENCY: All security protocols are not being changed, regardless of who is here operating as a lessee terminal operator.

MESERVE: But those searches are largely based on paperwork submitted by shipping firms.

FLYNN: We basically expect commercial companies to police themselves, so we hope for the best, which is a pretty crazy way to do business in our post-9/11 world.

MESERVE: The Coast Guard at L.A. Long Beach says, foreign companies are excellent security partners because it is in their economic interests to keep the cranes hauling freight 24 hours a day.

Jeanne Meserve, CNN, at the Port of Los Angeles-Long Beach.

(END VIDEOTAPE)

LIN: That's our top story. But also, we have news on a landmark nuclear deal between the United States and India. The agreement is the centerpiece of President Bush's trip to that country, highlighted by a state dinner. Now, the president says the deal will benefit both countries and make the world safer, but critics say it rewards India's bad behavior.

Senior International Correspondent Satinder Bindra joins us live from New Delhi with more details.

Interesting, Satinder, because there were so many differences between the two parties just yesterday.

SATINDER BINDRA, CNN SR. INTERNATIONAL CORRESPONDENT: Yes, and those differences have been sorted out. And certainly, there will be many in Congress who'll say bad behavior is being rewarded, but the administration has a different viewpoint.

They're saying that for the past 30 years, India has behaved responsibly. It's never been accused of proliferation.

Now, for the first time, they're also saying that India's civilian nuclear facilities will come under international safeguards. That's a good thing and that's a step forward. And nowhere in this agreement has the United States declared India a nuclear weapons power.

Today, the U.N.'s nuclear watchdog, as well, the IAEA, has welcomed this. And here in India there has been some excitement. The media describing this as "historic," also describing it as a "coup" for both sides -- Carol.

LIN: All right, Satinder. Then what -- how will this actually affect the relationship between the two countries?

BINDRA: Well, this has taken the relationship between these two democracies to a completely new level. I must add, this has to be ratified by Congress. And if it is ratified and U.S. laws are changed, then it could bring about nuclear trade between these democracies. And who stands to benefit the most from this is, U.S. companies will be sending nuclear reactors to India.

Also, another thing, defense styles (ph) will get a boost up because of this blossoming relationship. India is looking, for instance, for 126 fighter planes. And now, according to analysts, U.S. companies will stand a pretty good chance of bagging such lucrative contracts -- Carol.

LIN: Satinder, thank you very much.

Coming up later in this hour, I'm going to be talking with the Asia editor of "Newsweek" magazine. He's responsible for the oversight of the cover story about what this deal really means.

Now we go to a grim task today in New Orleans for a team of firefighters. Six months after Hurricane Katrina, all the dead have not been buried, and some not even found yet.

The Ninth Ward was inundated August 29 when the levees broke. The firefighters and cadaver-sniffing dogs are going out to look for the victims' remains today. Also, demolition is scheduled to begin today in the Lower Ninth Ward.

So what did President Bush know and when did he know it before Katrina struck? Even just hours before?

Well, a confidential government video obtained by The Associated Press shows President Bush was clearly warned before that hurricane hit. On the tape, National Hurricane Center director Max Mayfield tells the administration the levees very well could fail. New Orleans Mayor Ray Nagin says he is shocked by that video.

(BEGIN VIDEO CLIP)

MAYOR RAY NAGIN (D), NEW ORLEANS : Well, it seems as though they were -- they were aware of everything, that there was a significant risk to wherever the storm hit, that it was going to create some pretty devastating effects. That the Superdome roof was a question mark. That we would need lots of help. And that they needed to bring the Army and DHS involved in this effort.

And it surprises me that if there was that kind of awareness, why was the response so slow?

(END VIDEO CLIP)

LIN: Homeland Security Secretary Michael Chertoff has insisted time and again much of what Katrina brought was a surprise.

Still to come, a registered nurse who killed dozens of patients, and now their families get to weigh in. It is an emotional chance for them to find some closure.

And another new product, another claim. It's the way of the future. What's all the hype you're hearing about Microsoft's new toy?

(COMMERCIAL BREAK)

LIN: Microsoft is playing coy about its new toy, but tech bloggers seem to know the buzz. Bill Gates and company are about to unveil a wireless handheld-dubbed Origami. Now, think of it as an iPod, a mini laptop, digital notepad, and portable gamer all wrapped up in one tiny bundle.

"Wired" magazine covered the latest news and development in technology always. Mark McClusky is a product editor for "Wired" magazine. He's in San Francisco this morning.

Good morning, Mark.

MARK MCCLUSKY, "WIRED" MAGAZINE: Good morning.

LIN: Have you actually seen this thing, Origami?

MCCLUSKY: You know what? Nobody has this thing, Origami. That's part of what is fueling all the speculation...

LIN: Right.

MCCLUSKY: ... is nobody has had their hands on it yet.

LIN: Just wondering if you got a sneak peek, because you take a look at the video on the Web site, right?

MCCLUSKY: Right.

LIN: And it doesn't really make a lot of sense. And then you see this thing that's about the size of maybe a small paperback.

MCCLUSKY: Right.

LIN: And the claims are extraordinary.

What do you know about this?

MCCLUSKY: Yes, the claims are pretty extraordinary. The speculation right now is that it's going to be some sort of device running on a Windows operating system that, you know, has about a six- inch screen and has the battery life of up to a week. That it will have all sorts of wireless connectivity, like Wi-Fi and cellular connectivity.

You know, it's a little bit -- we're in the speculation realm where I think a lot of people are sort of projecting their hopes and dreams on to this nonexistent device.

LIN: Right. I mean, everything I've read about it, it has a GPS to get you where you need to be. You can write your best-selling book on it. You can download stuff, play music, all kinds of things. And then what does that say about really popular devices like iPod?

MCCLUSKY: Yes. I mean, if this delivers half of what the hype is promising around it, it's going to be a pretty big hit for them, I think. What's interesting is it's not sort of an iPod killer. It's definitely got kind of ambitions to take away maybe from the laptop market, from the PDA market and really kind of create a new product category, it looks like.

LIN: Because would it be truly the first PC of that size?

MCCLUSKY: There is -- there have been some other attempts to make what are called sort of ultraportable PCs or ultramobile PCs. A company called OQO (ph) had something on the market that, frankly, was underpowered and didn't perform the way that you would hope. This is a little bigger than the OQO (ph). And...

LIN: So are you skeptical or hopeful about this?

MCCLUSKY: I'm cautiously optimistic. I think that Microsoft and now Intel, actually, has a site out this morning sort of promising some of the same things. I'm hopeful that, you know, Microsoft and Intel wouldn't be making this sort of marketing effort if they didn't feel they had a hit on their hand.

LIN: Yes. Well, it sounds pretty cool. We're waiting for the announcement. It's supposed to come real soon.

MCCLUSKY: Yes, we certainly are. Next week, it looks like.

LIN: All right. Thanks, Mark.

MCCLUSKY: All right. Thank you.

LIN: One other tech note, TiVo is giving parents a new way to pick and choose programs for their kids. "The New York Times" says TiVo will announce the service today.

New software reportedly will limit children to programs approved by a pair of family-oriented watchdogs. They are Commonsense Media and the Parents Television Council.

Now, currently, parents can use the V-Chip or their cable box to limit shows, but ratings for those shows are assigned by the networks. TiVo says most parents are confused by the network ratings and don't use them.

All right. A family tragedy that played out on national television, and yet the man at the center of it is still very much unaware of it all. Hear from the wife of Sago Mine survival Randal McCloy next.

(COMMERCIAL BREAK)

LIN: Well, you take a look outside and it looks like Mother Nature is mixing it up today. It is a messy mix of sleet and snow on tap for the Northeast. And this, if you can see it, it's a snowy scene in Hartford, Connecticut, this morning on the left side of your screen.

Nothing like the mid-February record-breaking blizzard, though. But look at the right side of your screen.

Oklahoma, wildfires burn 8,000 acres of grassland and at least 30 houses. Gusty winds and unseasonable temperatures in the 90s fueled those flames. The area has had little to no rain since last autumn.

Now, authorities say some of the fires may be arson and one suspect is in custody.

But let's see what's to come. Jacqui Jeras checking the maps -- Jacqui.

(WEATHER REPORT)

LIN: All right. It's time to hug your family, because we have an update on the lone survivor of the Sago Mine explosion in West Virginia, two months ago.

Twenty-six-year-old Randy McCloy knows an explosion left him with brain damage and other injuries, yet he's still learning to talk and walk again. His wife says McCloy has not asked about the fate of his fellow miners, and so far she hasn't told him.

(BEGIN VIDEO CLIP)

ANNA MCCLOY, RANDY MCCLOY'S WIFE: Just, basically that, you know, it just comes to him in bits and pieces. He doesn't remember everything. And he just talks about that it was tragic and about how he couldn't breathe, very hard.

Just sitting by his bedside just waiting for him to talk and to see something from him. And finally, I have that. I have him talking.

I have his personality coming, and that's what my main goal was. And I'm getting that.

The kids are doing very well, especially now that he can talk and he recognizes them.

(END VIDEO CLIP) LIN: Well, when he recovers, Anna McCloy says that her husband will not be going back to the mines.

And on this note, West Virginia Wesleyan College is offering full tuition scholarships to McCloy's children, as well as the children of the 12 men who died at the Sago Mine.

When we come back, he called himself an angel of mercy, but dozens of people in a New Jersey courtroom this morning called him a monster.

(COMMERCIAL BREAK)

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