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U.S.-China Meeting; Proof of Innocence?; For the Defense; Democracy Battle; Weapons Cache Seized
Aired April 20, 2006 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Friend or foe? China's president pays a visit to the White House. Beneath the pomp and circumstance, a great wall dividing a superpower and an emerging one.
BETTY NGUYEN, CNN ANCHOR: Buyers beware, fear over falling supplies pushes oil prices to another record level. And rising gas prices, well, they aren't far behind.
CAROL COSTELLO, CNN CORRESPONDENT: Authorities in southern California find enough weapons to supply a small army in an upscale home. Where were those weapons headed for? The story coming your way.
ALINA CHO, CNN CORRESPONDENT: I'm Alina Cho in Durham, North Carolina, where defense attorneys say they have proof their clients are innocent. So do prosecutors still have a case?
CHAD MYERS, CNN METEOROLOGIST: I'm Chad Myers. Baseball sized hail in Talladega, Alabama yesterday. Today, the focus is Texas. Details coming up.
O'BRIEN: Good morning, it is Friday eve. I'm Miles O'Brien.
NGUYEN: And I'm Betty Nguyen. Good morning, everybody. I'm in for Soledad this week.
O'BRIEN: Let's get right to it.
Pomp, circumstance and simmering tension as China's president arrives at the White House for a high-stakes summit with President Bush. The two men embody one of the most important relationships between nations of our time and it is a natural rivalry. Both governments vying for economic and political advantages over the other.
President Hu Jintao and his wife arrived in Washington last night. They will arrive on the South Lawn of the White House in just a few hours.
CNN Radio correspondent Dick Uliano on the line now from Washington with a preview -- Dick.
DICK ULIANO, CNN RADIO CORRESPONDENT: Good morning, Miles.
It's a bright day in Washington, expected, and for the fancy arrival ceremony on the South Lawn where the Army Old Guard will perform. They'll roll out the red carpet. And then these two leaders will immediately plunge into talks in the Oval Office following the ceremony.
The issues I think are familiar to Americans, the huge trade deficit the United States has with China. Essentially, the United States buying $202 billion more in goods and services than China buys from the United States.
Then of course there's the issue of human rights. President Bush is expected to press China on this issue. Congress is demanding that. In particular, talk to him about freeing some jailed political dissidents.
There is the North Korean and Iran nuclear crisis. And of course the old familiar issue of Taiwan, which is a longtime U.S. ally, that the U.S. has sworn to defend from China. So you know it is a meeting of two powerful leaders in the world today and an issue of countries that are both a friend and adversary.
O'BRIEN: Dick Uliano in Washington, thank you very much.
This meeting comes in the midst of a staff shakeup at the White House. The most visible, that of Press Secretary Scott McClellan. He announced he's moving on after nearly three years in that job.
Another key change, Chief Political Strategist Karl Rove, one less hat to wear this morning, his main focus will now be on long-term political planning, like the fall congressional elections. He was stripped of the policy title he was given after the 2004 election.
New Chief of Staff Josh Bolten promised changes on Monday. His aim is to refresh and reenergize the administration -- Betty.
NGUYEN: The government is going after companies that hire illegal immigrants in a big way. This morning, Homeland Security and Justice Department officials will reveal a tough new plan to bring criminal charges against offending employers. They'll peg that plan off a massive raid spread over at least nine states.
Take a look at this map. Those are the states involved. More than a thousand illegal immigrants were rounded up and seven executives arrested and charged. The action being taken against the company IFCO Systems. Immigration officials say the company helps immigrants break the law.
(BEGIN VIDEO CLIP)
JULIE MYERS, IMMIGRATION & CUSTOMS ENFORCEMENT: Employees at IFCO have been involved in inducing illegal aliens to work there. Telling them that they should doctor their W-2s, giving them fake Social Security cards and in fact telling them they didn't need to fill out any documentation at all.
(END VIDEO CLIP)
NGUYEN: The company, IFCO Systems, is cooperating with the investigation.
Well there is no chance of a plea deal, that is the word from an attorney representing one of the two charged Duke lacrosse players. Attorneys for both players say their clients weren't at the party at the time of the alleged attack.
AMERICAN MORNING's Alina Cho is live in Durham.
Alina, if this is true, do the prosecutors still have a case?
CHO: Well, Betty, they believe they do. In fact, the D.A. says he is moving forward with the investigation. And at this time, he says he is even moving forward and trying to identify with certainty a third suspect.
Now defense attorneys tell a different story. They maintain that the two suspects charged in this case were not at the lacrosse party at the time of the alleged rape. Collin Finnerty, for one, they say was out enjoying a meal with teammates at a local restaurant. And they say a waitress can prove it.
Then there is 20-year-old sophomore Reade Seligmann. We spoke to a cab driver who says he remembers driving the Duke sophomore on the night of the alleged rape and that Seligmann and a friend were in his car for at least 30 minutes.
(BEGIN VIDEO CLIP)
MOSE MOSTAFA, TAXI DRIVER: But he just sit in the backseat, back of a single seat (ph). And he's the guy who ordered the food. He's the guy who called the call. And he's the guy, he paid the fare.
(END VIDEO CLIP)
CHO: Now the cab driver even tells us that he remembers that Reade and his father came to him and spoke to him earlier this week, I believe on Monday, when they decided that they -- their stories matched up. He says that the Seligmanns were ecstatic and that Reade was even jumping up and down.
Now remember, Betty, that prosecutors maintain they have a case. They have said all along that they believe that a hospital exam will show injuries to the accuser consistent with a rape.
NGUYEN: So how is the Duke campus reacting to all of this?
CHO: Well you have been hearing from friends of the suspects, Betty. We spoke to one yesterday who knows both of the players. She called Reade Seligmann a big teddy bear. She said Collin Finnerty was her favorite player on the lacrosse team.
Students are also out in force. They have made T-shirts and they are wearing around -- wearing them around on campus. They say innocent.
And interestingly enough, Betty, Duke administrators have joined forces with North Carolina Central University, the college that the alleged victim attended, and Duke's mayor -- Durham's Mayor, rather, Bill Bell. They have issued a joint statement. They are taking out full-page ads in the local papers all week long in a show of unity -- Betty.
NGUYEN: Alina Cho in Durham, North Carolina.
Thank you, Alina -- Miles.
O'BRIEN: The emotional roller-coaster we call the Zacarias Moussaoui trial appears to be nearly finally winding down. The defense could rest its case later today after family members of 9/11 victims take the stand to try and spare the al Qaeda operative's life.
Here is CNN's Kelli Arena.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN JUSTICE CORRESPONDENT (on camera): This morning we will hear more testimony from relatives of 9/11 victims. They will be testifying for the defense, which is trying to get Moussaoui sentenced to life in prison rather than be executed.
Yesterday, we heard from six family members who lost loved ones on September 11. They offered stories of hope, of putting their lives back together. The jury sat and listened very attentively. Moussaoui did as well. They did not mention, though, Moussaoui, the death penalty or their motivation for testifying.
In the earlier part of the day, we heard a debate over Moussaoui's mental health. The defense offered testimony that Moussaoui is a paranoid schizophrenic who suffers from delusions. Now the prosecution is expected to call a rebuttal witness who will say that Moussaoui is mentally competent.
Now if all goes as planned, the jury should start deliberating this case by Monday.
Kelli Arena, CNN, Alexandria, Virginia.
(END VIDEOTAPE)
O'BRIEN: A guilty plea for a Los Angeles man who planned to smuggle hundreds of shoulder-fired missiles from China into the U.S. Cho Tong Lu (ph), the first man convicted under a 2004 antiterrorism law which makes it illegal to bring weapons designed to attack aircraft. A second man pleaded not guilty in that case.
Stay tuned to CNN day and night for the most reliable news about your security -- Betty.
NGUYEN: Happening right now in America, two escaped inmates back in custody. Anthony Wayne Sherill and Joseph McCauley were picked up by police in Indianapolis. Now they're awaiting extradition back to the Bullitt County jail just outside of Louisville, Kentucky. That's a little over a hundred miles from Indianapolis. The men escaped Monday night by removing bricks from their cell wall.
Well the Centers for Disease Control and Merck are joining forces to contain a mumps outbreak in the Midwest. They are promising 50,000 more doses of the mumps vaccine. Now the hardest hit areas, Iowa, where 800 cases are reported. And hundreds of other cases have popped up in at least seven other states. So far, though, there have been no deaths and few hospitalizations reported.
In Florida, convicted child killer Lionel Tate is in court this morning, but it's not clear who will be representing him. Tate's lawyer has filed a motion to withdrawal from the case, claiming the teenager won't follow his legal advice. Tate faces having his probation revoked after allegedly robbing a pizza deliveryman.
Florida Governor Jeb Bush is expected to meet today with the parents of a teen who died at a boot camp in Panama City. Dozens of demonstrators camped out at the governor's office calling for arrests in the case. Investigators are looking into whether camp guards are responsible for the January death of 14-year-old Martin Lee Anderson. A massive rally is planned for Friday.
Well thousands of people in western South Dakota hoping to get power back today. A spring snowstorm dumped as much as two feet of snow in some places. The state opened up a special emergency operation center and several shelters.
Taking a look at the weather, OK, you've got snow out there, and then did you say baseball sized hail in Alabama?
C. MYERS: Baseball, yes.
NGUYEN: Oh my!
C. MYERS: And even larger right at the racetrack, Talladega. You know all the NASCAR fans know that name, obviously.
NGUYEN: Yes.
C. MYERS: Baseball sized hail, a couple of tornadoes yesterday.
(WEATHER REPORT)
Back to you guys.
O'BRIEN: Thank you very much, Chad.
To Nepal now, and the struggle for democracy there. Government troops fired on protesters demanding more freedom. In Nepal today, more than 100,000 demonstrators converging on the capital of Katmandu. The government is trying to stop the protests by issuing curfews and shoot on sight orders.
Satinder Bindra joins us by videophone from Katmandu.
Satinder, bring us up to date. SATINDER BINDRA, CNN SENIOR INTERNATIONAL CORRESPONDENT: Miles, the situation here quite tense. And with every passing hour, more and more people are getting onto the streets. The latest we heard from the police 115,000 protesters already there defying a curfew order.
Now police have fired at these crowds at three different locations. Three people have already been killed, 16 are critically injured. And in one hospital alone there are dozens of wounded, most of them have head injuries.
Now Nepal's pro democracy movement is already 14 days old. And all the protesters just want one thing, that King Gyanendra, who seized absolute political control in this country last year, should give over his political powers to this country's political parties.
O'BRIEN: Satinder, give us a sense of why the deep seeded anger here.
BINDRA: Well, the king, when he assumed power, said the political parties had failed to control a communist insurgency. There were Maoist rebels who were literally having their way in this country. So when the king took over, there were great expectations that he could control the Maoist rebels, people who want to set up a communist state. But clearly many people here believe the king has failed.
Many people here also believe the monarchy is outdated. Many of the younger Nepalese say it's time to have full democracy here in Nepal. And today they are hoping will be a defining day for the democratic movement.
O'BRIEN: Satinder Bindra in Katmandu, Nepal, thank you very much.
NGUYEN: Still to come, secret compartments. A wine cellar, Miles, turned into a makeshift shooting range. Yes. A major weapons find, enough to supply a small army.
O'BRIEN: Also, "Flight 93," the movie. Is it too soon for Hollywood to cash in on a story about 9/11?
NGUYEN: And Lance Armstrong going the distance, but it's not what you think. We'll tell you about new plans for the most famous cyclist in the world.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
O'BRIEN: Top stories now.
In about three hours, the Chinese President, Hu Jintao, meets with President Bush in Washington at the White House. There he is arriving last night in Washington. On the agenda this morning, Iran, North Korea, economic policies, just for starters. A sad anniversary today, the Columbine High School Massacre. Seven years ago today, 2 students shot and killed 12 classmates and 1 teacher before taking their own lives.
And oil hits a new record this morning, trading above $70 a barrel for the third straight day.
NGUYEN: Again and again, it just doesn't stop.
Carrie...
O'BRIEN: It's Groundhog Day.
NGUYEN: It is really?
Carrie Lee is here to talk about that.
CARRIE LEE, CNN CORRESPONDENT: Another day, another record, right?
NGUYEN: Are we going to continue to see this skyrocket?
LEE: We'll see. We'll see. You know yesterday a lot of this had to do with crude oil and gas inventory levels, both came in lower than expected. Basically, supply and demand. When supply is lower, demand goes up and that pushes prices up. So oil yesterday hitting a new intraday record, $72.40 per barrel.
NGUYEN: Wow!
LEE: Closing at $72.17. So we'll see what happens today.
Of course the other concern now is there are worries that refiners won't have enough capacity for the summer blends. You know that this is the time they switch their machinery to make those summer blends, so inventories typically come down, but that's causing some additional concern here.
O'BRIEN: So if you're holding oil stock, you're happy, right?
LEE: You know oil stocks have done very well. Even this week, if you take a look at names like ExxonMobil, Chevron, they're up 4 percent this week alone, Valero up 8 percent. So if you timed it right, well, you're making some money as an investor there.
NGUYEN: Making some faint (ph), yes.
LEE: Yes, exactly.
One other stock we're watching today, Apple Computer. Shares up about 4 percent or so last night, nearly $3 a share, on a pretty positive profit report. They did see a total $1.7 billion in sales of iPods. They have shipped 8.5 million iPods during the quarter. Since 2001, Apple has now sold a total of over 50 million of these devices.
NGUYEN: I believe it. LEE: And of course they make money on iTunes as well, right?
O'BRIEN: Yes.
NGUYEN: You see everyone with those little white earplugs, you know it's an iPod.
LEE: Right. Or in New York, you swap them out for black ones so that people don't steal it, right.
NGUYEN: So you're cool.
O'BRIEN: Is that it?
LEE: That's a big concern here.
(CROSSTALK)
LEE: The white ones are the telltale sign.
Also, though, you know Apple has computers. Their Macintosh is now with Intel chips. They make it easier to bring in the Windows software. So you know Steve Jobs, Bill Gates, they used to have this huge rivalry when the companies started out, well now kind of integrating more, so that's helping Apple as well.
O'BRIEN: All right.
NGUYEN: I see. I see.
Carrie Lee, thank you.
LEE: OK.
O'BRIEN: Thank you, -- Carrie.
LEE: Sure.
NGUYEN: Seven-time Tour de France winner Lance Armstrong is gearing up for his next race, but it's not what you think. No, Lance Armstrong is now training to run in the New York Marathon. He's not turning pro, just feeling a void after retiring from cycling.
O'BRIEN: Still to come this morning, Barry Bonds getting a slap on the wristbands, so to speak. We'll have the story after the break.
Also ahead, are you heading to the airport right now? We've got new information this morning on what's being done to make your trip through the security line a little easier.
You're watching AMERICAN MORNING on a Thursday.
(COMMERCIAL BREAK)
NGUYEN: Most popular stories on CNN.com right now. Trouble for baseball slugger Barry Bonds. Major League Baseball is slapping him with a $5,000 fine for wearing wristbands that violate apparel rules. Bonds say he'll appeal the fine.
Well he already has "The Apprentice," Trump Towers and even the Trump Taj Mahal. Now The Donald is expanding his empire with a state park. He's donating 436 acres of land in the Hudson Valley north of New York City.
Plus, 37 years after becoming the first moonwalker, Neil Armstrong finally got himself a moon rock. NASA presented it to him this week, and it will remain on permanent display at the Cincinnati Museum Center.
Authorities in southern California got more than they bargained for when they raided the home of a retired Army officer.
Carol Costello now live from the newsroom with this story.
Hi, -- Carol.
COSTELLO: Hello, Betty. Good morning to all of you.
This is like something out of a mystery novel. Police raid this upscale home in Upland, California, and inside they find a mother load of weaponry.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): This upscale southern California neighborhood is perhaps the last place you would expect to find a weapons cache, but investigators found enough weapons here to supply a small army.
UNIDENTIFIED MALE: Two hundred assault weapons, 100 machine guns, 200 silencers and hundreds of handguns.
COSTELLO: Police raided this home and couldn't believe what they found, nearly 900 fire arms in all, hidden in secret compartments behind walls, even under the floors. A wine cellar was turned into a makeshift shooting range, big enough for three shooters.
The homeowner, ret. Army Special Forces officer, was charged with numerous felonies for running what police say was a major black market gun business.
UNIDENTIFIED MALE: The word is out on the street this guy has been arrested. And I think you're going to see a decline overall in violent crimes concerning handguns.
COSTELLO: Police say those weapons probably would have wound up in the hands of street gangs.
UNIDENTIFIED MALE: This is how they buy their weapons, because they can't obviously do it in a legal fashion, so they go to people like this at swap meets where it's a clandestine transaction. (END VIDEOTAPE)
COSTELLO: Now you know I said the thing about the mystery novel, because the weirdest place that police found guns inside that home was behind a bookcase. Apparently detectives knocked on it three times. It opened up to this secret compartment and inside were a whole bunch of guns.
According to the "L.A. Times," 61-year-old Robert Farrow (ph) is now being held on $5 million bond. And he's been in trouble before. A decade ago, he ran a paramilitary camp at a chicken ranch. The goal was to overthrow Fidel Castro. He spent two years in prison for possession of illegal weapons.
The story is far from over. We'll keep following it for you.
Back to you.
NGUYEN: My, though, he knocked on it, the door opened. I mean it's just like out of a movie, -- Carol.
COSTELLO: Creepy.
NGUYEN: Yes, weird. All right, we'll stay on top of that. Thank you.
He may not be Modesto's most wanted, but an 8-year-old there is making crime history. The third grader is likely the city's youngest ever car thief. Now he apparently swiped a set of car keys from his teacher's purse and then took her minivan home.
(BEGIN VIDEO CLIP)
CAREN BRADY, TEACHER: No, my car is gone. Then I pulled out my car keys and said my car key is gone as well. And then I went, I've been robbed.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The 8-year-old had some made -- had made some comments to law enforcement that basically he just wanted to go for a drive.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
BRADY: Well I don't know how he got a foot on the pedal and could see over the steering wheel, because he is not a large child.
(END VIDEO CLIP)
NGUYEN: Can you believe that? Well in fact at less than four feet, he is the smallest kid in his class, except he won't be in class for a while. No, he has been suspended, but he won't be charged with a crime.
The morning's top stories are straight ahead, including what some call one of the worst jobs out there, thankless, stressful, always in the public eye, people always questioning you. Think you know what it is? Our Bob Franken is live with the answer right after the break.
Stay with us on AMERICAN MORNING.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
SCOTT: I travel at least once a week. You've got to be face to face. Travel has become much more difficult. Travel has become exhausting. Travel has become a job in itself. Getting from your home or your office to the airport, through the airport, to the plane. Can there not be an easier way to do this?
One of my wishes is that this concept of the air taxi with planes just sort of pulling up, I need to go here now, who's going there? Taxi service, but it just happens to go through the air, and it goes more than just around one city. I'd hop in one right now.
O'BRIEN (on camera): Hailing an airplane may seem like a fanciful notion, but business travelers may be ready to pay a little more for more tailored service. Those long lines, overcrowded, delayed and canceled flights might render old fashioned airline travel obsolete.
(voice-over): Ken Stackpoole of Emory Riddle Aeronautical University says the future of air travel is in smaller planes flying to smaller airports.
KEN STACKPOOLE, EMORY RIDDLE AERONAUTICAL UNIVERSITY: One of the positives of using small aircraft and the small airports is that the small airports are normally closer to the real destination that you want to get to.
O'BRIEN: Just one reason why Stackpoole says the air taxi concept is ready for takeoff. In fact, he says air taxi operators are already lined up to buy a new fleet of very light jets once FAA certification comes through. And the taxi fare for passengers, about $1 per mile.
STACKPOOLE: Within the next couple of years, you're going to be able to go to your nearest airport, flag down an air taxi pilot and fly to your destination, quicker, less expensive and at the time that you choose to fly, rather than on an airline schedule as we fly today.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
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