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Abbas and Olmert Meet in Jordan to Discuss Peace; King Abdullah Calls Moderate Muslims to Speak Up in War Against Terror; Seven U.S. Marines Charged with Murder of Iraqi Civilian; World Cup Fever; Israeli Lawmaker Seeks Ceasefire with Palestinian Authority

Aired June 22, 2006 - 12:00   ET

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


HALA GORANI, HOST: Caught in the cross fire. Israel says targeted air strikes protected citizens. But critics say too many innocent Palestinian civilians are dying.
UNIDENTIFIED MALE: We have to decide which side of the fence we are going to stand on. Otherwise terrorism at the end of the day is going to win.

MICHAEL HOLMES, HOST: Calling moderate Muslims -- Jordan's King Abdullah says they must speak up in the war against terror.

GORANI: World cup fever -- Ghana fans have definitely caught the bug. American fans, well, it's another story.

HOLMES: And the Wild Man of Rhythm -- a new movie in Cuba aims to tell the story of Benny More.

GORANI: Well, it is 7:00 p.m. in Gaza City, noon in Havana, Cuba. I'm Hala Gorani.

HOLMES: And I'm Michael Holmes. Welcome to our viewers throughout the world, including the United States. This is YOUR WORLD TODAY.

GORANI: War and peace in sharp focus in the Middle East today.

HOLMES: Indeed. In Jordan, there have been breakfast talks and handshakes involving the king there and two other key leaders, Israel's prime minister and the Palestinian president.

GORANI: While in Gaza, funerals on the ground follow rockets, artillery and fighter jets in the air, all painting quite a different picture of hostility between Israelis and Palestinians.

HOLMES: Israel calls them targeted killings and says they are critical for stopping terror attacks. But the Israeli offensive against militants sometimes takes innocent Palestinian lives -- civilians, women, children -- a problem made especially clear in the last few days. Paula Hancocks now looks at how the deaths of more than a dozen civilians in recent days is weighing on Israeli minds.

(BEGIN VIDEO TAPE)

PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): The funeral of two Palestinians, a pregnant woman and her brother, killed on Wednesday in another Israeli missile strike gone wrong. The missile's target was a car full of militants. Instead it hit a family in their Gaza home as they sat down to dinner.

Israeli missile strikes have killed 14 Palestinian civilians so far this month. The United Nations has called on Israel to stop targeted killings as too many civilians are becoming victims. Defending Israel's policy, officials claim Palestinian militants shoot rockets into Israel from the protection of civilian neighborhoods.

BINYAMIN BEN ELIEZER, ISRAELI SECURITY CABINET MINISTER: Well, it's happened. You know, once you are in a war, it's happened. This is not pharmacy, it's a war. And once they are shooting and using civilians and families and schools, it's happened.

HANCOCKS: Few Israelis believe the strikes should stop. But as pictures of dead and injured Palestinian children feature on the front pages, there is unease at recent events.

UNIDENTIFIED FEMALE: It makes me very sad that civilians are getting hurt in this situation. But I also know that Israel doesn't want to hurt civilians.

UNIDENTIFIED MALE: We hate the loss of life -- especially with children, when they're growing up, you know, their life are not really mature and full and alive. But we have to defend ourselves. I mean, that's just the bottom line here.

HANCOCKS: However, some on the political left believe there should be a halt to the missile strikes.

YOSSI BEILIN, CHAIRMAN, MERETZ PARTY: The innocent life toll is too high. One can understand that, from time to time, especially when terrorists are hiding behind civilians, things like this happen. But it is too often. And there are too many people who were killed in this way.

HANCOCKS: After an informal meeting in Jordan with Palestinian president Mahmoud Abbas, Israeli prime minister, Ehud Olmert, said he felt deep regret over the death of innocent civilians. But he also said there was no moral equivalence between the actions of the Israeli armed forces and those of Palestinian terrorists.

(On camera): The commander of Israel's air force has ordered more safeguards against firing missiles in areas where civilians may be harmed. But he said that since the Israeli pullout from Gaza, air strikes are the only way to wage combat against militants in the area. And they will continue. Paula Hancocks, CNN, Jerusalem.

(END VIDEO TAPE)

GORANI: The meeting was informal and brief. But both sides agree it was a good start to mending badly frayed relations. Israeli prime minister, Ehud Olmert, and Palestinian Authority president Mahmoud Abbas shook hands, even embraced, on the sidelines of a conference in Jordan. It was the first such high-level meeting in a year. Mr. Olmert says he regrets innocent Palestinians died in those recent air strikes, stressing that it is not Israeli policy to kill civilians. The leaders agreed to meet again soon in a more formal setting.

(BEGIN VIDEO CLIP)

EHUD OLMERT, ISRAELI PRIME MINISTER: We decided that we will meet in a matter of a few weeks. And this will not be the only meeting. We'll probably meet more than just once.

MAHMOUD ABBAS, PALESTINIAN AUTHORITY PRESIDENT: The meeting was good. I hope that he will prepare for our meeting, for our next meeting, starting from next week. I think that we will need for two, three weeks preparation. And after that we'll meet.

(END VIDEO CLIP)

HOLMES: Well, Jordan's King Abdullah hosted that breakfast in Petra determined to help put the peace process back on track. It is all part of a broader conference that has some of the world's best minds tackling global security concerns. Well our Jonathan Mann spoke with the king about his efforts. And he's here now to preview his exclusive interview, which is coming up on "INSIDE" on CNN International.

JONATHAN MANN, CNN CORRESPONDENT: It is a conference in Petra, Jordan, of diplomats, nobel laureates, great minds and celebrities. But the king spoke to us about the issues that the conference itself is addressing. And for Jordan itself, the conflicts in Israel and Iraq very close at hand. It's not theoretical.

He spoke to us about a few of the things that are going on around him.

(BEGIN VIDEO TAPE)

(Voice-over): Israeli prime minister, Ehud Olmert, and Palestinian president, Mahmoud Abbas, were in Jordan Thursday, guests at a gathering of nobel laureates to discuss peace. It was their first meeting since Hamas took power pledging more war with Israel. They spent only a short time together and put off their peace talks for another day. Their host was still upbeat.

KING ABDULLAH, JORDAN: It was done in a very positive and forward-looking atmosphere. As you have probably seen, the prime minister of Israel has said that he's hoping to meet with his Palestinian counterparts in the next several weeks. That means there is a commitment from both sides to get together and try and move the process forward, which I think for all of us is a very welcome sign.

MANN: Palestinian factions haven't just been fighting Israel. They've been fighting each other -- supporters of Fatah and Hamas in an open conflict for power. There are reports that Jordan has intervened, helping the U.S. and Israel deliver nearly 1,000 M-16 rifles to the Palestinian Authority and its supporters. ABDULLAH: As you've known for a while Jordan and Egypt, as well as the international community, have been working with the Israelis to try and give more capability, practical capability, to the security forces in the West Bank. And I think what you saw was just, I think, a coming of minds between the Israelis and Palestinians that really Mahmoud Abbas needs to be able to have all the security services more capable in being able to deal with any lawlessness or any other conflicts that they're facing on the ground.

MANN: Jordan has its own reasons to mistrust Hamas. Several of its members were arrested in April for plotting attacks inside the kingdom. Hamas has denied any part in a plot. But the king says it hasn't offered any help with the investigation.

ABDULLAH: We found stockpiles of weapons that could have been used in the future, which was of tremendous concern for all Jordanians, and I believe for the majority of Palestinians living in the West Bank and Gaza. And as I said, we are still hoping that our colleagues on the other side will respond and be able to send teams to be able to investigate this very serious issue and hopefully be able to move forward from there.

MANN: Jordan's intelligence service did some work on its own against a different target, providing what the U.S. military has described as a crucial link in the lead up to the air strike that killed Abu Musab al-Zarqawi, the head of al-Qaeda in Iraq.

ABDULLAH: And this is nothing new. We've been working with the international community for many years in combating extremism and trying to go after the terrorists that are hurting all of us. I am actually very proud that the Jordanians managed to have an active role in this. But this is -- this not just the end of the book. This is just a chapter. And, you know, terrorism is going to be out there for a while longer.

MANN: Zarqawi has the sympathy of many Jordanians, among them, four Islamist lawmakers who have been jailed and charged with fueling national discord after offering their condolences to his family.

ABDULLAH: At this stage, we in Jordan have this very major debate inside of our society. And Jordanians are having to wake up to the fact, as many Muslims around the world, whether terrorists or support of terrorism is acceptable. And as far as I'm concerned that is not the case. Otherwise, all we're doing is talking the talk.

(END VIDEO TAPE)

MANN: The king says people have to choose. And he has chosen. You can catch the entire interview with King Abdullah coming up later on "INSIGHT." That begins just under two hours from now at the times you can see on your screen.

HOLMES: All right. Jonathan Mann. Thanks very much.

GORANI: Well, after nearly 60 years Israel has become a member of the International Red Cross. Israel's Magen David Adom Society and Palestinian Red Crescent were both admitted to the humanitarian group. While Magen David Adom had objected to using the traditional symbols of the movement, the red cross or the crescent, now an optional third emblem has been created. A blank red bordered square in one corner, dubbed the red crystal. It can stand alone or frame the Israeli society's red star.

HOLMES: The U.S. Senate has just rejected a call to start withdrawing U.S. troops from Iraq by year's end. The proposal was put forth by democratic senator John Kerry, a former presidential candidate. A second proposal is now being voted on. This one urges the President to begin a phased withdrawal this year and submit a plan for further troop reductions. It doesn't, however, set a firm date for a complete withdrawal. The republican-controlled Senate is expected to reject this proposal as well. Fierce debate on the issue was mostly along party lines.

GORANI: Now, well, in Iraq charges of murder -- the U.S. military has formally charged eight U.S. servicemen with murder and other offenses in the killing of an Iraqi civilian. They stem from an incident in April in the city of Hamandia. With our report, here's Tom Foreman.

(BEGIN VIDEO TAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): In the Iraqi town of Hamandia, the funeral of a 54-year-old man this spring brought mourners and accusations that Hashim Ibrahim Awad was murdered by U.S. Marines. And now those accusations have brought charges.

COLONEL STEWART NAVARRE, U.S. MARINE CORPS: All Marines are trained in the law of armed conflict and are expected to fully comply with it.

FOREMAN: Seven Marines and a Navy corpsman are charged with kidnapping, murder and conspiracy in connection with Awad's death.

NAVARRE: The Marine Corps takes allegations of wrongdoing by its members very seriously and is committed to thoroughly investigating such allegations.

FOREMAN: Awad's family says he was pressured by U.S. forces to be an informer. And when he refused, they say he was taken from his home by a patrol of six to eight troops and killed.

FOREMAN: We heard gunshots, Awad's brother says, about 100 gunshots, maybe less. Local police say Awad's body was returned the next day, along with an assault rifle and a shovel. The family suggests those items were placed with Awad's body to imply that he was an insurgent burying bombs by the road. The family further alleges U.S. troops have offered them money to drop their accusations.

Every claim of unlawful activity is flatly rejected by John Jodka, the father of one of the servicemen charged in this case.

JOHN JODKA, CHARGED SERVICEMAN'S FATHER: He told me that he is absolutely innocent of these charges and that he was doing his job as a United States Marine through the orders given him. And I absolutely believe him.

FOREMAN: The Marines will not discuss any of the specific charges and are pointedly reminding everyone all these men are innocent until proven guilty. But the Corps is moving toward a trial. Tom Foreman, CNN, Washington.

(END VIDEO TAPE)

HOLMES: It's a very exciting day of the World Cup in Germany.

GORANI: All right. Whether it's a happy or not really depends on who you're rooting for.

HOLMES: A couple of hours, we'll know whether it's happy.

GORANI: All right. We'll have the complete lineup coming up. One match getting a lot of attention is Ghana versus the U.S.A., of course. We'll tell you who has reason to celebrate. Stay with us.

(COMMERCIAL BREAK)

HOLMES: Welcome back everybody to YOUR WORLD TODAY.

The Afghan president Hamid Karzai had some sharp words for the U.S.-led coalition's antiterror campaign on Thursday. Mr. Karzai saying the deaths of hundreds of Afghans, including Taliban militants, is unacceptable. More than four years after U.S.-led forces toppled the extremist Taliban government, the country is in the grip of a deadly state of violence. More than 10,000 coalition forces have launched large offensives against militants across southern Afghanistan.

(BEGIN VIDEO CLIP)

HAMID KARZAI, PRESIDENT OF AFGHANISTAN: Yes, I did predict and expect a rise in militant activity in Afghanistan. And I have raised my concerns with the international community from two years ago in this regard. I have systematically, consistently and on a daily basis warned the international community of what was developing in Afghanistan.

(END VIDEO CLIP)

HOLMES: More than 600 people, mainly militants, have been killed since May.

GORANI: And there's been a message to the people of Afghanistan from al-Qaeda's number two in a video. Ayman al-Zawahiri talks about crimes against the Afghan people by the Americans.

(BEGIN VIDEO CLIP)

AYMAN AL-ZAWAHIRI, AL-QAEDA'S NUMBER TWO (through translator): Our Muslim brothers in Kabul and Afghanistan, join with the Mujahideen forces in attacking the invaders and freeing Muslim Afghanistan and implementing Muslim Sharia law providing security and enforcing justice.

(END VIDEO CLIP)

GORANI: The message in Arabic was posted on Islamic websites and reportedly taped in May.

GORANI: It is decision time at the World Cup. Today's matches will determine the fate of seven out of the 18.

HOLMES: Some of those fates have already been determined. Today's results so far, Italy and Ghana moving ahead to the round of 16 as the road to the World Cup championship ends for the U.S.A. and for the Czech Republic. Italy took an early lead against the Czechs. Final score, Italy 2, Czech Republic nil.

GORANI: Meanwhile, Ghana, the real underdog in this competition beat the U.S.A. 2 to 1. Team U.S.A. had to win this match to advance to the next round.

HOLMES: It was 1-0 for a while, and then a penalty near the end of the first half put an end to it. Not all World Cup fans, by the way, are lucky enough to be able to travel to Germany to watch their favorite teams in action.

GORANI: But they're doing the next best thing -- watching it all on T.V. Our Richard Roth is at a sports bar in New York where the mood has just taken a turn for the worse, we presume. I don't think I've ever seen Richard Roth dressed in anything but a suit a tie.

But hi Richard, what's the mood like there?

RICHARD ROTH, CNN CORRESPONDENT: Well, they're still yelling and shouting. But now it's more like a bar. But the sound I heard the most was a growl when hundreds of American fans poured out of this bar, Nevada Smith's -- hard core establishment for soccer watching here. Extreme disappointment among the fans of this bar that the United States is out of the World Cup.

UNIDENTIFIED MALE: They blew it. They totally blew it. So many shots on goal, and they just didn't put it away. They were not shooting when they could have. They were passing it around all the time.

ROTH: I mean, they were happy here when the U.S. scored to tie it up. But crowd apprehension set in when it went to 2-1. And then eventually they lost. Italy did its part. The United States could not. Not enough offense here. In the bar, they're waiting now for Australia and other matches. But the United States, which allegedly had the best soccer team ever for the nation, is out of this tournament. Back to you.

HOLMES: All right. Richard, just for half a moment there, I mean, the atmosphere -- I mean, Americans do not generally follow football at this level. Have you detected that there's an enthusiasm going forward despite the loss? ROTH: Throughout New York City, even people who don't really like soccer in the past or appreciate it, there was definitely more interest, Michael -- a cab driver today -- even if you're from a different country. People were glued into this match. Of course, these were supporters of the game. And they were very upset, even if you tried to bother or talk to them during the game.

Whether that momentum carries through, that's the mission, once again, of the leaders of soccer in America or football in America. But it's a tougher sell now that the U.S. fell short, two rounds short of where the team went four years ago in Korea and Japan. Kofi Annan is happy though. His Ghanaian team won.

HOLMES: Yes, indeed. Him and Terry Perdue of our own sports department. Thanks very much, Richard Roth, at a sports bar there in New York.

Let's stay in New York. Wall Street not having a disastrous day. But it could be better. Valerie Morris with all the details in New York. Hi to you, Valerie.

VALERIE MORRIS, CNN CORRESPONDENT: Hi there, Michael. U.S. stocks are down as investors react to discouraging economic news. Let's first take a look at the numbers. You'll see that the Dow industrials are off -- down now 36 points or about a quarter of a percent. And the NASDAQ composite is slipping by more than half a percent. This comes as the index of leading economic indicators fell last month, suggesting slower growth.

Separately, 308,000 new jobless claims were filed last week. That is up from a four-month low of 297,000.

In corporate news, the largest Spanish language broadcaster in the U.S. is for sale. But things are not going smoothly. Univision reportedly has just one offer for $11 billion, which is less than expected. Accountants say that the bid was rejected Wednesday and then withdrawn. At the same time, investors are dropping out of the only other group said to be looking at Univision. So the sale could, in fact, be canceled. Univision's programs are watched by 80 percent of Spanish-speaking homes in the U.S.

And finally, the nominee for the U.S. treasury secretary will sell his large stake in a major Wall Street firm. Goldman Sachs' chair Henry Paulson owns more than 3 million shares in the investment firm. And he will liquidate those and other assets that could pose a conflict of interest with the treasury post. Paulson's Goldman Sachs holdings are currently valued at more than $480 million.

That is the very latest from New York. Hala and Michael, back to both of you.

HOLMES: Valerie, thanks.

GORANI: All right. We'll have a wrap of U.S. headlines for American viewers next. For our other viewers, British Airways is under investigation for alleged price fixing. HOLMES: Yes. And just ahead, we're going to take a closer look at the scandal that is plaguing that airline and see how it is affecting stocks.

GORANI: And the Life in a Film -- a new documentary tells the story of Cuba's greatest musician. Stay with CNN.

(COMMERCIAL BREAK)

DARYN KAGAN, CNN ANCHOR: I'm Daryn Kagan at CNN Center in Atlanta. More of YOUR WORLD TODAY in a few minutes. First, though, let's check on stories making headlines here in the U.S.

Authorities in Irving, Texas are scouring a city park right now for a missing 2-year-old. Elian Mahano (ph) was last seen yesterday during a family outing in the park. He was wearing a white shirt, flowered shorts and flip-flops. Officials believe the boy simply wandered off and is lost in nearby woods.

Two proposals to pull U.S. troops from Iraq go down in defeat. The republican-controlled Senate rejected the proposals by democrats within the last hour. One plan called for a complete withdrawal of U.S. combat forces by July of next year. That one failed by a vote of 86 to 13. The other called for a phased redeployment starting this year but set no deadline. It was defeated on a vote of 60 to 39.

There's word the top commander in Iraq may be ready to reduce the number of U.S. troops there. Sources are telling CNN that General George Casey is considering a small cut in troop levels. Casey and Defense Secretary Donald Rumsfeld briefed lawmakers this morning. Right now the U.S. has about 127,000 troops in Iraq. Sources say General Casey may call for reducing that number by 6,000 to 10,000. It would be gradual and could involve delaying troop rotations instead of a direct pullout.

Eight U.S. service members facing murder charges -- seven Marines and one sailor are being held at Camp Pendleton, California today. They are accused of killing an Iraqi man in April near the down of Hamandia (ph). Charging documents say that they dragged the man from his home and shot him and then planted a rifle to make him look like an insurgent. Relatives and defense attorneys say the men are innocent.

Live coverage of the Pentagon briefing by Defense Secretary Rumsfeld and General Casey will begin at 3:30 p.m. Eastern with Kyra Phillips on "LIVE FROM."

To Budapest, President Bush presses a familiar theme, comparing Iraq to Hungary while commemorating that country's 1956 uprising against the Soviet Union.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We resolve that when people stand up for their freedom, America will stand with them. The success of the new Iraqi government is vital to the security of all nations. And so it deserves support of the international community. We will continue to help the Iraqi government establish free institutions to achieve its goals. And we will continue to help Iraq take its rightful place alongside America and Hungary as beacons of liberty in our world.

(END VIDEO CLIP)

KAGAN: You saw that speech live here on CNN. The President is now on Air Force One heading back to Washington.

FBI experts head to a federal prison in Tallahassee, Florida. They're investigating yesterday's shootout which left a guard and a federal agent dead and another prison employee wounded. Authorities say the guard opened fire on agents about to arrest him in a sex-for- contraband scandal. Five other guards arrested in the same case are due in court for a bail hearing this afternoon. They have pleaded not guilty.

Fire is a big worry today in the western states. About two dozen major blazes are burning. One of the most worrisome is just south of Flagstaff, Arizona, in Sedona. Hundreds of firefighters are scrambling to get ahead of the flames before they threaten Flagstaff. The immediate danger is to several hundred evacuated homes in Oak Creek Canyon. So far none have been lost. Wildfires now burning have blackened almost a quarter million acres in the west.

And then there's flooding to show you from Norwalk, Ohio. If they could only get the rain where they want the fires and back and forth -- this is the picture from Norwalk. A state of emergency has been declared in this area due to the flooding. Reynolds Wolf is watching this.

Reynolds, any answers for how you can get everything the dry with the wet, and the wet...

(WEATHER REPORT)

KAGAN: North Korea threatening a long-range missile test. The U.S. tries to head that off. We'll look at the strategy at the top of the hour on "LIVE FROM" with Kyra Phillips. Meanwhile, YOUR WORLD TODAY continues after a quick break. I'm Daryn Kagan.

(COMMERCIAL BREAK)

HOLMES: Welcome back, everyone, to YOUR WORLD TODAY. I'm Michael Holmes.

GORANI: I'm Hala Gorani. Here are some of the top stories we're following.

Israeli Prime Minister Ehud Olmert and Palestinian Authority President Mahmoud Abbas have agreed to hold a summit in the next few weeks. They met informally at a conference in Jordan today. In the meantime, an Israeli commander has ordered more safeguards for air strikes targeting militants after recent attacks killed more than a dozen Palestinian civilians. But he says strikes will continue in response to rockets launched by Palestinian militants.

HOLMES: British Airways is at the center of an investigation into possible price fixing. British and U.S. regulators are looking into allegations that the British carrier and other airlines colluded on passenger fares and also on fuel surcharges. The British carrier, along with Virgin Atlantic, American Airlines and United Airlines, say they are cooperating with the investigation.

GORANI: The Republican-controlled U.S. Senate has just rejected two proposals involving troop withdrawal from Iraq. The first was a call to start withdrawing U.S. troops by year's end. The second proposal, also by Democrats, opted for a phased withdrawal this year. It called for further troop reductions, but didn't set a firm date for complete withdrawal.

All right, we're turning now to one of our top stories. And one Israeli lawmaker says it is time for both Israelis and Palestinians to put their weapons aside. Yossi Beilin wants his government to call an immediate ceasefire with the Palestinian Authority. He says the toll on innocent life from all the back and forth violence is simply too high.

Yossi Beilin joins us now live from Tel Aviv. Mr. Beilin, thank you for being with us. You're calling on the Israeli government to declare not only a complete ceasefire, but a unilateral ceasefire, so regardless of what the other side does. Is that correct?

YOSSI BEILIN, CHAIRMAN, MERETZ PARTY: I'm not sure whether it is possible now to negotiate with -- yes, it is true ,it is true. This is, I believe, the only way out right now. Because if we wait for them and they wait for us, we will never get to a real ceasefire. And the number of innocent people who were killed on both sides is so big that we must put an end to it.

We are the stronger power, so the responsibility lies on us, even if they were the ones who intended to kill innocent people. And the Israeli army does not intend to kill innocent people. But somehow, by accident, those people have been killed. And I think that if we question declare unilaterally a total ceasefire, then we can at least test the other side and see in the coming two, three, four, five days they continue and they shoot their (INAUDIBLE) on Israel, on the city of (INAUDIBLE), then we might reconsider our stance.

But I believe that if only what we are doing is waiting for the other side, it might be a kind of kindergarten, rather than adult people who must, must put an end to this vicious circle of blood.

HOLMES: Now, Yossi Beilin, should Israel talk to the Hamas-led government regardless of whether or not Hamas recognizes Israel?

BEILIN: I don't see any reason why should we negotiate with Hamas. If they don't recognize us and they don't want to (INAUDIBLE) with us and to negotiate with us, we don't -- we cannot impose ourselves on them. I believe that these are conditions -- that the whole world actually, put to the Hamas the right conditions for any negotiations. This doesn't mean that you shouldn't have any contacts with the Hamas. This is childish. They were elected. They are, regretfully, the new government of the Palestinian Authority. And there are things that have been to be coordinated. I don't think that we have to boycott them. I think that it is important to demand that they will meet the international conditions. And only then, the world will give money to this government and negotiate with it.

On the other hand, we do have somebody who is the head of the PLO, who is the Palestinian Authority. His name is Mahmoud Abbas, known as Abu Mazen. This person wants to negotiate with us. He's ready to negotiate and to coordinate and to talk about the permanent agreement and to put it to a referendum. And for whatever reason, after three months after the elections, Israel has not talked to this person.

And only this morning, it was the first time when, in a context of a breakfast in Jordan, Mr. Olmert, our prime minister, met with Abu Mazen and then they decided to meet in two or three weeks. I don't see any reason, any reason, why not to meet immediately and talk business. I think that rather than going to the whole world, the right thing to do is to meet with the person in Ramallah and talk with him business, because he means business.

GORANI: All right, very briefly, because we're running out of time, if you were to give advice now to the prime minister of Israel, Ehud Olmert, and what to do immediately in order to stop the cycle of violence that does not include a complete and unilateral ceasefire -- because they've already said that's not going to happen -- what would it be?

BEILIN: Well, I don't believe that we have another -- a better option than that. I think that we have to do two things. On the one hand, to stop fire. On the other hand, to talk seriously with the Palestinian, legitimate leader about the interim and the permanent solution. The road map, the withdrawal and the permanent agreement. This is possible. And really, I don't see why, why doesn't the Israeli prime minister do it because this was exactly his promise before the elections.

GORANI: All right. Yossi Beilin, the chairman of the Meretz Party. Many thanks for joining us on CNN -- Michael.

HOLMES: All right. The U.S. president, George W. Bush, presses a familiar theme in a speech to the Hungarian people in Budapest. George W. Bush on Thursday comparing the situation in Iraq with Hungary's fight against communism, claiming, in his words, "liberty cannot be denied."

Mr. Bush commemorating the fifth anniversary of Hungary's failed revolt against the Soviet Union. He noted that Hungarian soldiers are helping to train Iraqi security forces and acknowledge the world's impatience with Iraq's turbulent transition to democracy.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, U.S. PRES.: Iraq's young democracy still faces determined enemies, people who will use violence and brutality to stop the march of freedom, the kind of patience the good people of Hungary displayed after 1956. We will help them rebuild a country destroyed by a tyrant. We will help the Iraqis defeat the enemies of freedom. Our commitment is certain. Our objective is clear. The new Iraqi government will show the world the promise of a thriving democracy in the heart of the Middle East.

(END VIDEO CLIP)

HOLMES: The U.S. president is now on his way back to Washington.

GORANI: A memorandum from the U.S. embassy in Baghdad to the U.S. State Department paints a disturbing picture of life in Baghdad.

HOLMES: The bleak message at odds with the sometimes optimistic ones displayed by the U.S. and others.

(BEGIN VIDEOTAPE)

HOLMES (voice-over): The memorandum is a grim collection of tales from unidentified Iraqis working for the U.S. embassy in Baghdad. Leaked to a U.S. newspaper and apparently written earlier this month, it shows staff feel that they put their lives on the line simply by coming to work. Five of the nine workers whose experiences are documented say fears for their own safety is so great they haven't even told their own families where they work. Employees said in April the demeanor of Iraqi guards of the fortified green zone changed. It's becoming militia like. Quote, "One employee asked us to get her some press credentials because the guards held her embassy badge up and proclaimed loudly to passers-by 'embassy' as she entered. Such information is a death sentence if heard by the wrong people."

The memo goes on. Another employee claims to attend a funeral every evening, everyday threats weigh very heavily. Other observations point to ever more conservative religious values being pushed on, in particular, women. "Two of our three female employees report stepped-up harassment beginning in mid-May. One was advised to wear a veil and not to drive her own car. She said some groups are pushing women to cover even their face, a step not taken in Iran, even at its most conservative."

The memo shows not just concerns of the Iraqi staffers, but those of their employers at the embassy, too. Quote, "Although our staff retain a professional demeanor, strains are apparent. We see their personal fears are re-enforcing divisive sectarian or ethnic channels. We have begun shredding documents that show local staff surnames.

(END VIDEOTAPE)

HOLMES: Well, to get a better idea about some of the struggles and frustrations that Iraqis face, particularly those working for U.S. organizations, we go now to CNN's Arwa Damon, who's standing by in Baghdad. Arwa, we employ Iraqis as well, and they do take an enormous risk, working with Western organizations, in particularly organizations like the U.S. embassy

ARWA DAMON, CNN CORRESPONDENT: That's right, Michael. And I mean, and those problems that we just heard right there aren't just applicable to those who just work for the U.S. embassy or our network, which is, you know, viewed as a Western network. It pretty much applies to a lot of Iraqis across the board, even when they work for local Iraqi companies.

Take, for example, the kidnap that happened yesterday of factory workers, the motive behind which is entirely unclear. But if we want to just focus, for example, employees that work for our network, they do not disclose they're identities, either, not even to their neighbors. That sense of paranoia that used to exist under Saddam Hussein's time for a lot of Iraqis in which they kept their lives very private, even from their neighbors, even from their friends, exists today. They are keeping their lives very private, what they do, from even their neighbors, out of fear that they might turn them over to the insurgents or that the insurgents might be listening -- Michael.

HOLMES: Governments like the U.S. and Great Britain, of course, are interested in portraying a fairly optimistic view of Iraq's future, at least, and even what's happening on the ground now. But you get out on the streets. You speak Arabic. What are you discerning from people about whether it's positive or not? I mean, this document, and I know you've read it, really talks about the fears of literally death.

DAMON: That's true, Michael. And that fear is so real for almost all Iraqis, especially those who live in Baghdad, and it's a fear of being targeted specifically by insurgents, because of either where you work or what religion you are, or it's a fear of being in the wrong place at the right time, where a car bomb goes off. I mean, it's a fear that causes people to pause and debate whether or not they should go to the bank and withdraw money. It's fear that cause a father to think about whether or not he should make a quick trip to the pharmacy to get medicine for his sick child. I mean, this fear that Iraqis live with exist in a very, very real way.

And when you talk to them and you ask them if that has gotten better, even right now as I'm speaking to you, the answer is no. It's getting worse. That fear with which Iraqis live every day, a lot of them will tell you, is actually getting worse, especially here in the capital -- Michael.

HOLMES: Yes, all pervasive. Arwa, thanks very much. Arwa Damon in Baghdad.

We're going to take a short break now. Be right back on YOUR WORLD TODAY.

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HOLMES: And welcome back, everyone to YOUR WORLD TODAY. In an attempt to avoid full-scale war, Mogadishu's new Islamic court union and Somalia's interim government plan to meet today as the current chair of the Arab league, Sudan, will be mediating and hosting these very important talks. The Islamic militia kicked U.S.-backed warlords out of Mogadishu earlier this month in battles that killed some 350 people. They now hope to install the first national administration in 15 years.

GORANI: Joining us now to discuss the conflict in Somalia and the Arab League's rule as mediator is Yahya Mahmassani. He's the Arab League ambassador to the United Nations and joins us now live from New York.

Ambassador, thanks for being with us.

Yet another country in Africa on the verge of civil war. Is it the responsibility of the Arab League to step in and avoid such a scenario?

YAHYA MAHMASSANI, ARAB LEAGUE AMB. TO U.N.: Well, I think that it's the responsibility of the Arab League and the world community as well, including the African Union. I think we're all interested to see stability, and security, and peace prevail in Somalia after 15 years of civil wars and lawlessness.

What's happening now is that on the initiative of the Arab league and the presidency of the Arab summit, the Somalia committee of the Arab League has reconvened in which both the interim Somalia government, as well as the union of the Islamic cause (ph) will join and participate to find ways how we can help, how we can bring peace and security to Somalia and what role the Arab League can play in this respect.

GORANI: Now here -- I am apologizing, Ambassador, but we have a very limited amount of time. But you have a situation where Islamist militants have taken over the capital. They control that now. Secular warlords control another part of the country. In a country that has been lawless and without a firm, strong government for over a decade, where do you even begin?

MAHMASSANI: Well, we begin by a dialogue and consultation, negotiations between the Islamic corps as well as the interim Somalia government. I think both sides have expressed their willingness to participate in this meeting, and they are today, at this very moment, participating.

And I think we can come to a -- they could come to a common ground on the -- to proceed with the peace process and the process of conciliation to bring peace to the country. That's how we start.

GORANI: Let us talk a little bit about what the Arab League would like the United States to do. Essentially, those who were benefiting from the support of the United States were kicked out of the capital. What should the United States do, in your opinion, at this point?

MAHMASSANI: I think the United States should not interfere as far as arming the warlords or continuing to support them. I think there has been a report that they have been doing that.

I think now we could concentrate our effort on bringing both the Somalia interim government and the union courts together in order to find a common ground. I think this is what we should do and the United States should support this effort.

GORANI: All right. Ambassador Yahya Mahmassani, many thanks for joining us here on CNN. I apologize for leaving it there, but that's all the time we have for now. Thank you very much.

MAHMASSANI: Thank you for having me.

HOLMES: Well, from the Mambo to "Bolero."

GORANI: Benny More sang it all.

(MUSIC)

HOLMES: More than 40 years after his death, Cuba's most revered musician is finally getting his due.

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HOLMES: Welcome back, everyone. After Fidel Castro came to power, Cuba's rich, big band tradition fell out of favor. And then the documentary "Buena Vista Social Club" shined new light on a group of all but forgotten musicians.

GORANI: Yet there's one story of a legendary Cuban musician that's been left untold until now. Morgan Neill takes us to Havana.

(BEGIN VIDEOTAPE)

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MORGAN NEILL, CNN CORRESPONDENT (voice-over): For most people outside Cuba, these images mean little. But for many on the island, the man singing, Benny More, is their greatest musician, bar none.

The 1999 documentary the "Buena Vista Social Club" brought unprecedented, worldwide popularity to Cuba's music, and made some of More's contemporaries famous, but it left untold of the story of the man known as the "wild man of rhythm" who died 43 years old in 1953.

Now a new movie aims to tell that story, and Benny takes on one of the country's most revered musical figures. As a musician, More was known as a versatile genius, dwarfing his contemporaries who went on to fame in the "Buena Vista Social Club," but as a man, he fell prey to very human vices, most notably, womanizing and alcohol.

Director Jorge Luis Sanchez says a film about Benny can be difficult for a Cuban public because they knew him, because he's still alive, he never left Cuba. And the Cuban public is very demanding with their mythic figures. The movie has been a true labor of love for Sanchez, himself a distant relative of More. And, of course, the music had to be just right. (END VIDEOTAPE)

GORANI: All right. That was Morgan Neill reporting from Havana. The music just right on YOUR WORLD TODAY, hopefully. I'm Hala Gorani.

HOLMES: Yes, she is. I'm Michael Holmes. This is CNN.

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