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American Morning

More Pressure on President Bush Over Leaking of Classified Information; Critical Day of Testimony in Enron Trial Today

Aired April 10, 2006 - 09:31   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody.
A beautiful day here in New York today. Look at that picture of Central Park.

MILES O'BRIEN, CNN ANCHOR: They're blooming.

S. O'BRIEN: Yes, they are.

M. O'BRIEN: Excellent.

S. O'BRIEN: Welcome back, everybody.

There is more pressure this morning to tell you about on President Bush today over the leaking of classified information. A top Republican is now saying he wants the president to tell the country, quote, "exactly what happened."

Let's get right to Ed Henry, live for us at the White House.

Hey, Ed, good morning.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.

That pressure coming from Republican Senator Arlen Specter, demanding that the president come forward and explain exactly why the White House released this previously classified information to bolster the case for war in Iraq. All of this of course sparked by the testimony that was revealed last week by Scooter Libby, the indicted former top aide to Vice President Cheney, who claims the president personally authorized the release of this sensitive information to refute critics like ambassador Joe Wilson. The White House has said the president, of course, has the legal authority declassify such information. So in their words, this was really not a, quote, "leak," and they also point out that there is no evidence that in fact the president was involved in leaking the identity of former CIA operative Valerie Plame Wilson, Joe Wilson's wife.

But Democrats insist the president did engage in selective leaking for political purposes. They also claim that the president was misleading the public when he repeatedly denounced classified leaks. And Democrats yesterday did get some ammunition from this senior Republican, Arlen Specter, who said, quote, "There has to be a detailed explanation precisely as to what Vice President Cheney did, what the president said to him and an explanation from the president as to what he said so that it can be evaluated." The question, now, of course, will other senior Republicans join specter in demanding more answers? We've seen previously top Republicans on the Hill splitting with the White House on immigration, the Dubai ports deal. We'll have to wait to see in this election year whether they feel the heat on the CIA leak case and start pressuring the White House a bit more -- Soledad.

S. O'BRIEN: Ed Henry at the White House for us this morning. Ed, thanks -- Miles.

M. O'BRIEN: A critical day of testimony in the Enron trial today. Former CEO Jeff Skilling says he's looking forward to finally taking the stand in his own defense.

CNN's Ed Lavandera live outside the courthouse in Houston.

Ed, Mr. Skilling says he's been waiting five years to tell this story.

What are we expecting to hear?

ED LAVANDERA, CNN WHITE HOUSE CORRESPONDENT: Well, he's already told a portion of this story to Congress, when he testified before Congress a few years ago, and many people suspect that what he will testify to will be very similar in many respects to what he has already said, and that is that when he left the company several months before Enron collapsed, in December of 2001, that he left the company in good standing and that everything was financially secure.

However, prosecution witnesses have been testifying here over the last 10 weeks that it was Skilling who masterminded the financial fraud that caused Enron to collapse, but as Jeffrey Skilling arrived here at the courthouse just a short while ago, he said he looked forward to testifying. He spoke a little bit more last week when he left the courthouse.

(BEGIN VIDEO CLIP)

JEFFREY SKILLING, FMR. ENRON CEO: It's time to get the story out. I'm looking forward to it. I have nothing to hide. I am innocent of all of the charges that have been put forward, and I think we'll show that when we get on the stand.

(END VIDEO CLIP)

LAVANDERA: Mr. Skilling isn't the first defense witness to testify. They've already been putting on their case since last week. And after Mr. Skilling testifies, which we suspect will take several days, Ken Lay is also suspected to testify -- expected to testify, but that probably won't be for another couple of week -- Miles.

M. O'BRIEN: Of course the interesting moments will not be so much when the defense attorneys are prodding him along gently, but in the cross-examination, and Mr. Skilling has a reputation for being a bit fiery, doesn't he? LAVANDERA: Absolutely. I think that's generally a reputation and the image he has. And in fact that also plays into one of the other things that many people suspect Mr. Skilling needs to do, and that is to kind of clear up this image of him. He's been portrayed over the last four, five years here in Houston as a greedy villain, and he has to go a long way in convincing this jury that he's a likable guy.

M. O'BRIEN: Ed Lavandera, who is definitely a likable guy. Thanks for being with us, as always.

Another trial getting under way today that we're watching as well. It's called the "Xbox murder trial," or so it's been dubbed. Jury selection begins today in Dulan (ph), Florida. That's right near Orlando. Three men charged with beating six people to death with baseball bats. The victims between the ages of 17 and 34. Prosecutors say the defendants were looking for an Xbox video game system at the time.

S. O'BRIEN: Then we have an update on the mystery, remember this one, involving that rare Ferrari? Stefan Eriksson is now being held without bail on the suspicion of grand theft. He, of course, is the Swedish executive who was found at the scene back in February. The Ferrari, I mean look what's left of it, it slammed into a pole on Pacific Coast highway in Malibu, California. It was a million-dollar Enzo Ferrari, one of only 400 in the world. And then the story got strange. (INAUDIBLE) called, said a mysterious man named "Dietrich" was driving. Eriksson also claimed to be a deputy police commissioner. Well, it turns out that police now say he never finished paying for the car, so Eriksson has never paid off this car, and a couple of other cars, too. The actually car belongs to the bank, hence the grand theft charges.

And they can dish it out, but can they take it. Now that the "New York Post" gossip column, Page Six, is make the papers in town. How are they handling that. Carol Costello has some of the juicy details for us this morning.

Hey, Carol.

CAROL COSTELLO, CNN ANCHOR: Oh, I do, Soledad.

You have to admit, you pick up "The New York Post" pretty much every morning and go directly to Page Six, because inside there are, like, a bunch of stories with juicy little tidbits, some nice and some downright nasty, about the famous and the infamous, and the information in this paper doesn't just stay in New York, it ends up across the country because entertainment shows like "Entertainment Tonight" often quote page six, but now can you shall anything you read in here?

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): in the world of celebrity gossip, "The New York Post" page six is an institution. As a gossip column, some say it can make or break careers. Some will do anything to get in it; others to stay out of it.

MICHAEL MUSTO, "THE VILLAGE VOICE": Page six is the destination read. "The New York Post" is the bible for a lot of people, and page six is the first page they turn to.

COSTELLO: But now the "Post" finds itself the subject of scandal, and Page Six has become page-one news. One of its writers, Jared Paul Stern (ph), is the target of a federal investigation, accused of trying to extort money from a California billionaire. His name is Ron Burkle. Stern allegedly demanded a $100,000 up-front payment, and additional $10,000 annual payments. In exchange, Stern would not write negative stories about the billionaire. "The Post" suspended Stern pending the outcome of the probe.

In a world where favors and freebies, from free trips to designer handbags, are so often tolerated, this scandal shocks even gossip veterans.

DEBORAH SCHOENEMAN, CONTRIBUTING EDITOR, "N.Y. MAGAZINE": In order to compete in the gossip world, you have to play by a different set of rules, and that often means by not playing by the rules. However, there are all different levels and gradations of that. However, I think what Jared Paul Stern did was that he crossed the line, which was already murky.

COSTELLO: Stern paints a different picture, though. He says he was setup by Burkle, and that Burkle initiated the discussion about an investment in his clothing company.

Stern told CNN, quote, "He definitely had this paranoid notion that Page Six was out to get him. He was out to destroy us. He'll find out it backfired on him."

In a statement to ABC, Burkle's spokesperson said the billionaire had no interest in investing in Stern's clothing company. The "Post" scandal comes in a new era of gossip, when celebrity sightings have been posted on the web within minutes.

So has celebrity gossip gone too far?

MUSTO: This is going to have to lead to a total purging of the bad stuff, of the bad seeds, doing unethical things in the gossip world for there to be a light in the end of the tunnel, and gossip to live and everyone to be able to dish more ethically and with a lot more conscience.

(END VIDEOTAPE)

COSTELLO: Get rid of the bad seeds. It's the kind of story that would end up in "The New York Post" on page six, don't you think?

The funny thing in New York, though, Miles, is "The Daily News," the tabloid rival of "The New York Post," right on the front page, "Gossip Gone Wild." So there's a new kind of war going on in town.

M. O'BRIEN: Yes, you don't think they're making a little hay over that one, do you?

COSTELLO: Oh no, not at all.

M. O'BRIEN: Competition there.

All right, thank you very much, Carol Costello.

(WEATHER REPORT)

(COMMERCIAL BREAK)

S. O'BRIEN: If you watch Bravo's "Project Runway" then you know all about Chloe. Now, though, she's gone beyond reality show to reality that is all her own, and that includes a big old starring role in the world of fashion.

AMERICAN MORNING's Alina Cho takes a look.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over) (voice-over): She's petite, but Chloe Dao more than makes up for it in personality.

(on camera): 4'11".

CHLOE DAO, DESIGNER: Four-eleven and three-quarters. You have to add the three quarters. That's very, very important.

CHO (voice-over): This under-five foot fashion designer is everywhere. The winner of the hit reality show "Project Runway," 34- year-old Dao is something of a celebrity.

DAO: I'm in "People" magazine and "US Weekly." That's bizarre to me. But to me, I'm just -- I'm still who I am.

CHO: Who she is as interesting as the clothes she makes. Born in Laos, Dao is Vietnamese, the sixth of eight girls. Her family fled the Viet Cong in 1976, lived in a refugee camp in Thailand before emigrating to the United States three years later. They eventually found a home in Houston.

DAO: My mom didn't speak english, and she had three jobs and my dad had a full-time job.

CHO: By the time she was in junior high school, Dao was working, too. Mom wanted her to be a doctor. It wasn't meant to be. At age 10, she already had other plans.

ELSA KLENSCH: This is "STYLE," and I'm Elsa Klensch.

CHO: After watching "STYLE WITH ELSA KLENSCH" on CNN, Dao was captivated, and found her calling. She later moved to New York, studied fashion and learned from other designers. Her dream was to open a boutique back home in Houston and design under her own label.

So in 2000 she did exactly that. Enter Lot 8, named for the eight girls in her family. Business is a family affair.

DAO: My sister, Sydney (ph), is my partner. She does PR, and sales and manages the paperwork. And my sister, Christine, is the hairstylist in the back of the salon. My mom helps me sew and do alteration. My aunt helps me fill my production.

CHO: Most of production...

DAO: ... into my garage.

CHO: ... is still done Dao's garage. Though these days she's having a hard time keeping up with demand.

(on camera): This is the one piece that's left, right?

DAO: The one tiny piece in the store.

CHO: That's it? It's sold out.

DAO: Yes.

CHO (voice-over): All of the success means Dao is much busier. She still finds time to go to her store, help clients, even advise them on alterations.

DAO: Tack that closed for now.

(voice-over): The kind of hard work she knows is necessary to become a household name.

CHO (on camera): Do you want to be the next Vera Wang or Ralph Lauren?

DAO: I want to be me. I want to be the next Chloe Dao.

CHO (voice-over): Alina Cho, CNN, Houston.

(END VIDEOTAPE)

S. O'BRIEN: Good for her!

M. O'BRIEN: You got to love her. She's cute as she can be.

(MARKET REPORT)

M. O'BRIEN: All right, straight ahead in the program, Peter Gabriel with genesis of a new way to fight human rights abuses all over the world, hoping cameras can sledgehammer tyranny and fear. We'll explain ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Grammy winner Peter Gabriel has had a great musical career in the legendary group Genesis, also on his own, of course. While he hasn't left the music business behind, he has another cause near and dear to his heart: fighting human rights abuses with cameras. It's called the Witness program.

Last week I spoke with Peter Gabriel, along with Gillian Caldwell, the executive director of Witness.

(BEGIN VIDEOTAPE)

M. O'BRIEN: Thanks very much both of you for being with us. Tell us first of all, Peter, how you got the idea.

PETER GABRIEL, FOUNDER, "WITNESS": Well, I was involved with the amnesty tour, Human Rights Now in '88, with Springsteen, Sting, (INAUDIBLE), Tracy Chapman. And we went around the world and I started meeting people who suffered human rights abuses for the first time. And it suddenly became very real to me.

And one of the things that astounded me was that people could not only suffer, torture or watching their loved ones killed in front of them, but then they could have their stories buried, forgotten and denied. And whenever there was video evidence or photos, it was much, much harder to do. So the idea of proposing that we put cameras out to human rights activists came from that.

M. O'BRIEN: I know you've been very active in Burma. Tell us how the cameras are helping out in Burma.

GILLIAN CALDWELL, EXECUTIVE DIRECTOR, "WITNESS": Well, Burma is a place where you literally risk your life if you try to document extensive human rights violations by one of the world's most brutal dictatorships. And so our partner Burma Issues, which is led all by Burmese citizens who have fled the country, they travel inside the country, at great personal risk, to bring the stories out to the international community. And it's virtually one of the only vehicles through which that videotape testimony is make its way out of Burma right now.

M. O'BRIEN: The pictures do speak volumes. Let's take a look of an example of what we're talking about here.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

(END VIDEOTAPE)

CALDWELL: The video that you just saw was designed specifically to speak to the international criminal court. It's newly founded. And one of its first series of prosecutions will be in the Congo, where a dramatic war has actually claimed over four million lives in the last decade. And what that video calls for is for the ICC to take the use and recruitment of child soldiers very seriously, and to prosecute perpetrators. And so as a direct result of that screening before the court's prosecutor and the personnel, we now see the first indictment, including account on the use and recruitment of child soldiers.

M. O'BRIEN: Now, why do you think this is so important, Peter? Because, you know, there are cameras all over the world. We have cameras in a lot of places that bear witness to a lot of atrocities, as well. In a way, this puts people in jeopardy, too, doesn't it?

GABRIEL: There is a risk of that, and some people are extremely brave. The issues group who took the Burma footage, for example, definitely were risking their lives. And -- so, we -- I mean, we spend a lot of time worrying about safety and security and trying to help in whatever way we can, but truthfully, some of these people are going to be at risk.

M. O'BRIEN: Gillian Caldwell, Peter Gabriel. The program is Witness. The organization is Witness. And you can find out more about it at witness.org. Thanks very much.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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