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Anderson Cooper 360 Degrees

North Korea Missiles; Unholy Alliance?; New Terror Tape; Iraqi Rape and Murders?; Looking for Jeffs; Holy Laughter; Puppy Love

Aired July 06, 2006 - 23:00   ET

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


(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... about not firing a missile. Sure enough, a couple of days ago, he not only fires one, he fires seven.

LARRY KING, HOST "LARRY KING LIVE": Why do you think he did?

Bush: You know, I don't know. I really don't know. I think he wants us to either fear him or pay attention to him. I view it as an opportunity.

KING: To?

BUSH: Well, to get the Chinese and the South Koreans and the Japanese and the Russians to work with us and to send a clear message this is unacceptable behavior.

This morning I called Vladimir Putin and Hu Jintao and last night I had spoke to the president of South Korea, President Roh, as well as Prime Minister Koizumi, and said look, we've all sent a signal to him. He's ignored us. Now we need to send another signal. We need to speak with one voice.

This issue is one that will be solved when the international community works in concert.

KING: What did Mr. Putin say?

BUSH: He said he agreed. He said this is a serious problem and he wants to work with us.

KING: Would you -- since it is always better, one would think to talk with somebody, would you meet with Kim Jong?

BUSH: Oh, I think he'd love to have the United States sit down at the table alone with Kim Jong-il. The problem is we tried that and it didn't work. I think the best way to solve this problem diplomatically is for there to be other nations around the table with us so that when he looks out, when he looks at the table or he looks at the world, he hears China and the United States speaking in one voice or China and the United States, Russia, Japan and South Korea speaking with one voice.

I am into solving problems and I'm convinced the strategy we have is the best way to solve this problem. KING: Do you ever feel that it's all coming in around you?

BUSH: No, I don't. I view this...

KING: Because it's been said, no president has had to face -- maybe with the exception of Roosevelt with depression, and World War II -- what you faced at the same time, domestically and...

BUSH: No, that's not how I look at life. I look at life as a series of opportunities to make this world a better place. One reason there is problems is because we have confronted them. The status quo was unacceptable to me. And therefore it is important to deal with problems before they become acute.

(END VIDEOTAPE)

ANDERSON COOPER, CNN ANCHOR: That was the president and Mrs. Bush exclusively on "LARRY KING LIVE."

Speaking of acute, North Korea today promised to conduct more missile testing. This as Russia and China appear to stymie an American, British and Japanese push for U.N. sanctions against the North.

More now on what the president is up against and how he's handling it from CNN's Ed Henry.

ED HENRY, CNN CORRESPONDENT (voice-over): For the first time President Bush described how he learned about North Korea firing missiles as he visited troops at Fort Bragg on Independence Day.

BUSH: Donald Rumsfeld called me and said, look he's fired you know, rockets, some of them scuds that went in the Sea of Japan. Looks like he fired his long-range rocket that tumbled out of the sky. But we responded very quickly. We had a plan in place to respond if he were to fire these things.

KING: Were you prepared to shoot it down?

BUSH: If it headed to the United States, we've got a missile defense system that will defend our country.

HENRY: In his exclusive interview with CNN's Larry King, the president also rejected calls to sit down for direct talks with North Korean Dictator Kim Jong-il.

BUSH: I think the best way to solve this problem diplomatically is for there to be other nations around the table with us.

HENRY: A point the president made earlier with Canadian Prime Minister Steven Harper at his side.

BUSH: We're dealing with a person who was asked not fire a rocket by the Chinese, the South Koreans, the United States, the Japanese, and the Russians. And he fired seven of them. Which then caused the secretary of state and myself to get on the phone with our partners and reminded them that -- of the importance of speaking with one voice.

HENRY: But the truth is, the president is having difficulty getting those key players in the six-party talks to speak with one voice.

Calls Tuesday night to the leaders of South Korea and Japan yielded support for tough United Nations sanctions against North Korea.

But the president's Wednesday morning calls to the leaders of Russia and China resulted in a roadblock, sparking the president to downplay expectations.

BUSH: Diplomacy takes a while. Particularly when you're dealing with a variety of partners, and so we're spending time diplomatically making sure that voice is unified. I was pleased from the responses I got from the leaders.

HENRY (on camera): The president can take another run at his counterparts from China and Russia next week at the G-8 summit in St. Petersburg where the agenda was supposed to be dominated by Iran. But suddenly North Korea has vaulted to the top of the list.

Ed Henry, CNN, the White House.

(END VIDEOTAPE)

COOPER: Some perspective now from Washington Post Robin Wright. We spoke earlier today.

(BEGIN VIDEOTAPE)

COOPER: Today the president reiterated diplomacy is the right course. What options really does the U.S. have though in trying to resolve the crisis with North Korea? I mean, militarily, it doesn't seem like those are very attractive options if you care about Seoul, South Korea, certainly.

ROBIN WRIGHT, THE WASHINGTON POST: They're not attractive options and of course, they're very unpopular. As you mentioned, the international community is dead set against it. And Vladimir Putin, the president of Russia today said he was opposed even to using, you know, sanctions against North Korea. So that doesn't give much of an alternative.

And Chris Hill, who is the chief U.S. negotiator and is out in the region today has said that they're not going to sweeten the deal. So you don't have carrots and you don't have sticks. And so that puts you in a bit of a quandary about that is going to be effective.

COOPER: Some Democrats had talked about possibly this being a diplomatic opportunity that, you know, even China would be forced to see that this, you know, that the regime in North Korea had to be sort of brought more in line. You're saying that message, though, isn't really being received in China or in Russia? WRIGHT: Well, I think that actually China will be forced to, particularly if the North Koreans are foolish enough to launch another missile. Clearly, this is a provocative act and everyone agrees with that. It's what you do in response. And the Chinese are not enthusiastic about new sanctions and nor are the Russians. And they're both two of the five influential members of the security council. They have a veto. So that limits our action.

COOPER: And in diplomatic circles, I mean what is the motivation of China and Russia to resist sanctions, to resist a harder line?

WRIGHT: Well, in China's case it has a great deal of business with North Korea, it has a long-standing relationship. It doesn't want to see further instability in a Korean peninsula. And I think that has -- China particularly makes it more difficult. That is -- China is the only country that can really use the kind of cut off the valves when it comes to electricity. Cut off trade that can make life very difficult, even more difficult than it already is in North Korea.

COOPER: You also mentioned sort of the language being used. The president has used very measured language when talking about North Korea. It's certainly at odds with the kind of language we heard early on regarding Saddam Hussein's regime, regarding the hunt for Bin Laden. Has this president changed, do you think?

WRIGHT: Well, I think the second term there has been a change from the kind of language and the demeanor of the first administration. Yes, I think he's become a little more realistic in part because of being faced with the realities of the difficulties in Iraq, that it is not proven to be a snap, we couldn't move in, topple Saddam Hussein and begin to withdraw in a matter of weeks or months. The difficulty of that has, I think, made them -- forced a realism on them. And so they're a little bit, I think, more careful. As the president once said, he wish he hadn't said, bring them on. You know, different attitude toward these crises, I think.

COOPER: The U.S. is also pretty insistent on not speaking directly one on one talks with North Korea. Why is that? I understand the motivation, not wanting to do it now, looking like it is giving into pressure. Why before though? Why not have the one on one talks?

WRIGHT: I think it's because all the players in the regions want to be a party to this. We don't want to give in to the North Koreans in the same way you don't want to give in to the Iranians and give them what they want most. You have to be seen to be a part of the bigger process. I think there are a lot of reasons that are reflected both in North Korea and Iran.

COOPER: Robin Wright, appreciate you joining us. Thanks very much, Robin.

WRIGHT: Thank you.

(END VIDEOTAPE)

COOPER: Kim Jong-il's personality can seem straight out of the twilight zone. Here's the raw data.

North Korea's dear leader reportedly loves Hollywood movies, is rumored to personally own 20,000 videotapes. At 5'3", some says he wears platform shoes and beau font hairdo to appear taller. Not a bad idea of that. And Kim Jong-il enjoys his Hennessey cognac. Some say he's their biggest customer in the world, paying on average $700,000 a year for his liquor of choice.

Soon the dear leader may have a new visitor dropping by. Venezuela's Hugo Chavez sees something in North Korea that he wants. He's got the money to pay for it. And that could mean trouble for the Bush administration. We'll look at that.

Also laughing, some believe it's also the way to heaven above. Take a look. Laughing for Jesus. A pastor who keep his congregation in stitches, when 360 continues.

(COMMERCIAL BREAK)

COOPER: Well, U.S. relations with Venezuela have been all downhill ever since its President Hugo Chavez claimed the CIA was behind a failed attempt to topple his government. Bush administration denied any involvement. But now Mr. Chavez is reaching out to the nemesis of the moment, North Korea's Kim Jong-il. The potential alliance has a lot of folks in Washington trying to understand exactly what Mr. Chavez is up to.

So is CNN's Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): He agitates the United States by leveraging his oil reserves and making statements like this.

HUGO CHAVEZ, VENEZUELAN PRESIDENT (through translator): The president of the United States, the killer.

TODD: He tweaks the Bush administration by launching seven test missiles into the Sea of Japan and threatening nuclear war. Could Venezuelan President Hugo Chavez and North Korea's Kim Jong-il team up against the U.S.?

Chavez has announced he intends to travel to North Korea in the coming weeks. The State Department reacted even before North Korea's long range missile test.

SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: Certainly if that involved the transfer of military technologies, just given North Korea's track record, certainly that would be a concern.

TODD: Venezuelan officials say they don't have that ambition. But some analysts believe North Korea's desperation for cash and willingness to sell missiles could send this alliance down a dangerous path. JEFFREY BEATTY, TOTALSECURITY.US: Hugo Chavez has money. He feels threatened by the United States. He is aggressive against the United States. And I'm concerned that the same things that led Fidel Castro to welcome Russian missiles on his soil in the early '60s would come into play and have Venezuela host missiles from North Korea.

TODD: But a former assistant secretary of state who dealt with Venezuela says that's a leap.

PETER DESHAZO, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: Chavez wants to establish himself as a leader in the western hemisphere and around the world. Someone who is a counterweight to the United States, someone who offers a different ideology from the United States. But this would, I believe, tarnish his image in the hemisphere and not strengthen it.

TODD (on camera): There is also the debate over capability. Some analysts believe none of the missiles North Korea sells right now have the range to travel the 1,500 miles between Venezuela and the United States. Others believe at least one of those missiles could have that range or could be modified to have it.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COOPER: More than just North Korea, to raise a chill tonight. Coming up, a new terror tape.

But first, Erica Hill with some of the other stories we're following -- Erica.

ERICA HILL, CNN CORRESPONDENT: Anderson, they are bracing for more violence in Gaza. The Hamas led Palestinian government, today ordering security forces and militias to join the battle against Israeli forces, now carving a buffer zone out of parts of the territory. As many as 26 Palestinians and at least one Israeli died today in clashes that escalated when the IDF rolled in, trying to retrieve the kidnapped Israeli soldier.

Authorities in Colorado today, releasing, for a lack of better words, the collective writings of Columbine Killers Eric Harris and Dylan Klebold. Among those documents is a shopping list for weapons, a hit list of enemies and step by step, minute by minute plans for the massacre which in which 13 people died.

Two states, two high courts, two setbacks for same sex marriage today. In New York, the courts said lawmakers have a legitimate interest in protecting children by limiting marriage to a man and a woman. Meantime, justices in Georgia have reinstated a ban on same sex marriage approved by voters two years ago.

And it was the kiss seen and talked about around the world. Today, Russian President Vladimir Putin told a web cast audience what moved him to do it. I tell you honestly, he said, I just wanted to touch him like a kitten and that desire of mine ended in that act. Anderson, I have no idea what that means.

COOPER: I just wanted to touch him like a kitten?

HILL: I don't know. I mean, yes.

COOPER: Maybe that's something like lost in translation. Maybe in Russian that means something else.

HILL: That's what I was thinking. Yes, it could have a totally different meaning in Russian.

COOPER: I just wanted to, hmm.

HILL: Yes, ponder that one.

COOPER: I'm mystified. Meow.

HILL: See you later.

COOPER: Well, coming up, a new terror threat from a dead terrorist. On the eve of the anniversary of the London terror attacks, one of the suicide bombers speaks from the grave. That story, coming up.

Also ahead tonight, a look inside the closed world of polygamy.

(BEGIN VIDEO CLIP)

I'm Gary Tuchman with CNN. I just wanted to check with you. Do you have any idea where Warren Jeffs is? Any idea at all?

(END VIDEO CLIP)

COOPER: Well, it seems the search for that man, Warren Jeffs, a fugitive is picking up. Several of his followers are on trial. We'll have the latest on that ahead on 360.

(COMMERCIAL BREAK)

COOPER: A suicide bomber, speaking from the edge of his own grave. He took part in last year's terror attacks in London. He, himself, killed six people. Tomorrow marks the anniversary of that event. The bombings that took 52 lives in all and left some 700 others injured.

Tonight a new al Qaeda tape has surfaced and with it a warning from a dead mass murderer.

(BEGIN VIDEOTAPE)

COOPER (voice-over): The video, like so many others from al Qaeda, first appeared on al-Jazeera. Shehzad Tanweer, one of the London suicide bombers, seems to appear from beyond the grave. A dead man talking on a video recorded months before he detonated his bomb on a crowded subway train a year ago. SHEHZAD TANWEER, LONDON BOMBER: What you have witnessed now is only the beginning.

COOPER: He is the second bomber to send such a message. The first, from suspected ringleader, Mohammad Sidique Khan, was released just before 9/11 last year.

MOHAMMAD SIDIQUE KHAN, LONDON BOMBER: Until we feel security, you will be our targets.

COOPER: Tanweer, like Khan, threatened more attacks.

This latest video was designed, says a senior Scotland Yard officer, to cause maximum hurt to the families and friends of those who died last July 7th. Also says a terrorism expert, to win new recruits to al Qaeda.

ASSAF MOGHADAM, RESEARCH FELLOW, HARVARD UNIVERSITY: What the video footage does, it helps empower the organization. It actually helps portray the organization as more important and more powerful than it actually is. And that then has an effect on people who potentially will join the group.

COOPER: The slick half hour video from al Qaeda's production company includes an animation of a subway racing into a tunnel and exploding. Shots of chemicals being poured, a small explosion, someone circling areas of a London map, even what appears to be Jihadis celebrating, possibly after learning of the attack.

But the origin of this footage is unclear. There is also al Qaeda's number two, Ayman al-Zawahiri praising Tanweer. But Tanweer was the centerpiece. British officials suspect Tanweer and Khan recorded the videos when they visited Pakistan together in 2004. Recordings such a videotaped last will and testament is a critical way of committing a suicide bomber to his murderous mission.

MOGHADAM: He reaches sort of a point of no return, and that is a point where psychologically it is very, very difficult to reverse from that stance because he has for himself decided that he has -- that he is going to die and he has promised the group that he is going to die.

COOPER: It seems to have worked. Just five months after they returned from Pakistan, Tanweer and Khan set off with their two co- conspirators, bombs in their backpacks, to bring their holy war to London.

(END VIDEOTAPE)

COOPER (on camera): That was one year ago tomorrow.

Our expert CNN Terrorism Analyst Peter Bergen joined me earlier to talk about the terror tape.

(BEGIN VIDEOTAPE)

COOPER: Peter, what's so interesting about this video is I think if you had asked a lot of people, even a couple of weeks ago if al Qaeda had a direct roll in the London bombings, most people would have said no. This video seems to indicate pretty clearly they did.

PETER BERGEN, CNN TERRORISM ANALYST: I think it is one more piece of evidence that this is a classic al Qaeda operation. There was a lot of talk in the British media about these were home grown self-starting terrorists.

Yes, they're home grown, but I don't think they were self- starting. We've had tapes now, a lot of tapes from Ayman al-Zawahiri, averaging one a week. We've had three or four from Osama bin Laden in the last three months. These guys don't seem to be feeling the heat of the war on terrorism nearly five years after 9/11.

I think the London attack indicates the al Qaeda organization, despite the tremendous hits it has taken since 9/11, is able to conduct operations, thousands of miles from its home base on the Afghan-Pakistan border.

COOPER: Who was the intended audience, do you think, of this tape? And what was the message?

BERGEN: Basically taking credit, trying to inspire fear. I think the message is us, it's also like minded Jihadists around the world. It is to the English people, and they're milking it for as much as they can. Clearly, this was -- I mean, if you think about it, Anderson, this is quite a -- they obviously had a fair amount of planning went into all this, not just the attack, but also the whole media production around this.

(A), that they would record these wills in the first place, but (B), that they would have the kind of the patience to wait around for the first anniversary to release another round of tapes and induce this horrible action in London yet again and make people relive the whole thing again.

COOPER: We have been told repeatedly by this administration, by Donald Rumsfeld, that al Qaeda is on the run, I think Condoleezza Rice used those terms as well. The president used the term decimated, I believe. You point out in the "Washington Post," recently in an editorial, that it's not just traditional al Qaeda, you also have this home grown Jihadis, but it's sort of this perfect storm of both of them really now feeding off each other.

BERGEN: Yes. Certainly, in the London case it was the perfect storm because you had these -- this group of guys from the north of England who were undistinguished, except for the fact they were so ordinary. Two of whom, it appears now, very strongly managed to hook up with al Qaeda in Pakistan, made videotape wills.

COOPER: Does it seem to you that al Qaeda then, therefore is strengthening? Are they on the run at all?

BERGEN: Well, they're certainly -- they've been on the run. But my view is that they are reconstituting rather well in the Afghan- Pakistan border, not only able to do these attacks that we saw in London a year ago, but a blizzard of suicide operations in Afghanistan. We are seeing the situation there really deteriorate rapidly. I think some of that is al Qaeda. And, of course, a very active media production schedule. We have seen constant messages from their leaders, very sophisticated videotape with this London confession, pictures of people mixing chemicals and other things.

I don't think that -- that doesn't seem to me like an organization on the ropes. That seems like an organization that is reconstituting itself.

COOPER: Do you find it surprising that at this time with al Qaeda reconstituting, as you say, or at least reconstituting some parts, that the CIA would disband its bin Laden unit.

BERGEN: that blew me away, Anderson. I mean, you know, even, you know, I'm sure there are bureaucratic reasons for that, but I find it hard to understand that decision. I mean, here is bin Laden now suddenly popping up with annoying regularity on these audiotapes, Ayman al-Zawahiri releasing more videotapes than Britney Spears, and they're closing down, you know, the bin Laden unit. I don't know, I think psychologically that sends a terrible message.

COOPER: It is certainly a strange timing at the very least. Peter Bergen, appreciate you joining us. Thanks.

BERGEN: Thank you, Anderson.

(END VIDEOTAPE)

COOPER: Well, a former U.S. soldier is in court, accused of raping an Iraqi woman and then killing her and her family. Tonight, the shocking reason why the U.S. military discharged Steven Green from duty.

Plus, the manhunt for Fugitive Polygamist Warren Jeffs. Police following a new lead. And we take you to a town that is home to many of his followers. See why it is so tough tracking down one of the FBI's most wanted, when 360 continues.

(COMMERCIAL BREAK)

COOPER: A former U.S. soldier is accused of raping an Iraqi woman and then killing her and her family. Steven Green was in federal court today and pled not guilty to the charges. The case has shocked the Muslim world and could impact the U.S. military's already troubled relations with the Iraqi people.

Now there is word of why the U.S. military discharged Green just a couple of months ago.

With the developments from the Pentagon, here's CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT (voice-over): A van departs a North Carolina jail, transferring the former Army private to federal court in Louisville, Kentucky, to face charges that have strained relations between the U.S. military and the Iraqi people.

21-year-old Steven Green is accused of the premeditated murder in March of an Iraqi family, including a small child. Followed by the brutal rape and murder of their eldest daughter, whose age is variously reported as between 15 and 25.

What Green and up to four other American soldiers are alleged to have done in this farmhouse in Mahmudiyah, identified in videotape by the Associated Press, is especially offensive to Muslims. Because in Islamic culture, rape brings shame to an entire family.

Recognizing the impact of the charges, the U.S. ambassador to Iraq and the top U.S. commander today issued a rare joint statement. "This is painful, confusing and disturbing not only to the family who lost a loved one, but to the Iraqi people as a whole. The alleged events of that day are absolutely inexcusable and unacceptable behavior. We will fully pursue all the facts in a vigorous and open process."

The killings occurred March 11th or 12th, but the allegations didn't surface until June 23rd when two soldiers came forward during stress counseling. The investigation started the next day and Green was arrested in the United States a week later.

By then, Green had already received an honorable discharge from the Army in April, according to court documents, because of a personality disorder. Something that according it Army regulation is "...authorized only if...the disorder is so severe that the soldier's ability to function effectively in the military environment is significantly impaired."

A few months before his discharge, Green was featured on the Army's official Web site. In a picture, he is seen about to blast a lock off a gate of what is described as an abandoned Iraqi home.

(On camera): In federal court in Kentucky, Green entered a plea of not guilty to the charges of rape and murder. He waived a pretrial hearing and agreed to be tried in the federal court, not the military justice system. His arraignment was set for next month.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

COOPER: Well, Green could get the death penalty if convicted. I talked about his court fight with Scott Silliman, a professor at Duke University School of Law and a former Air Force attorney.

(BEGIN VIDEOTAPE)

COOPER: Scott, so why is Steven Green being tried in federal court, not a military court-martial? SCOTT SILLIMAN, PROFESSOR, DUKE UNIVERSITY SCHOOL OF LAW: Anderson, the answer is quite simple. The law does not allow the military to have jurisdiction over Green since he's become -- since he's discharged from the Army. And at the stroke of midnight on the day he was discharged, the military lost any ability to prosecute him by a court-martial.

COOPER: So, even though the crime was allegedly committed while he was wearing the uniform, that doesn't matter, it will be a federal trial?

SILLIMAN: That's correct, Anderson. There was a case over 50 years ago in the Supreme Court with almost identical facts. An airman over in Korea who was committing an offense and then was separated. And the United States Supreme Court basically said there is no longer any jurisdiction over him after he has been discharged.

The only exception for that, by the way, is for people who are retired, receiving retired pay, but that's not the case with Green.

COOPER: Because he had only served a short amount of time and was honorably discharged?

SILLIMAN: That's correct. Because he was not retired from the military, he was separated from the military. And, again there was no longer any jurisdiction as of the stroke of midnight on the day he was separated.

COOPER: Would a court-martial have been easier to get a conviction? I mean, I think you only need, what two-thirds to get a guilty verdict?

SILLIMAN: That's true. Except when you're talking about premeditated murder, Anderson. However, the jury panel in a court- martial starts out to be an all officer case. Green, if he were going to be tried by a court-martial could request up to one-third of the jury panel to be enlisted. But nonetheless, you're dealing with a very sophisticated jury panel, one who is well familiar with what's allowed under the law of war and under the Uniform Code of Military Justice.

So in many ways facing a federal trial where you're requiring a unanimous verdict, he actually may be better off.

COOPER: Does it surprise you that he was honorably discharged from the Army because of reported anti-social personality disorder?

SILLIMAN: No. There's two different issues there, Anderson. One, the reason for his discharge was a personality behavior disorder. That was the reason why he was separated early. The type of discharge he receives, honorable, general under honorable conditions is based upon his entire service record throughout his enlistment. And obviously, if he had never been in trouble before, he was entitled to an honorable discharge. He was just let out early.

COOPER: The Iraqi government says they now want to review the immunity that's given to all U.S. led forces in Iraq. If that immunity was taken away, if that policy was changed in Iraq, would that in any way affect this case?

SILLIMAN: Well, if there was no immunity and if the United States allowed the Iraqi courts to have jurisdiction over our service personnel, he could be tried in Iraq. But that's just not going to happen, Anderson. The United States has had a long policy of what's called maximizing jurisdiction. It's always written into our treaty agreements, our status of forces agreements, where we say we always want to have military jurisdiction over any of our troops that might get into trouble. So, it's just politically not going to happen.

COOPER: Scott Silliman, I appreciate it very much. Thank you.

SILLIMAN: My pleasure, Anderson.

(END VIDEOTAPE)

COOPER: Police with dogs raid a house in Cedar City, Utah, looking for Polygamous Sect Leader Warren Jeffs. But are they any closer to actually tracking down the man who's on the FBI's most wanted list? We'll show you that.

And a rare look inside the ultra secretive compound in Arizona where many of Jeff's followers live. Find out why they are still faithful to his teachings even though they haven't seen him for years, next on 360.

(COMMERCIAL BREAK)

COOPER: That is the wanted poster for Warren Jeffs. Police raided a house in Utah this week, looking for the fugitive cult leader. Jeffs is the leader of a polygamist sect of fundamentalist Church of Jesus Christ of Latter Day Saints. That's what they call themselves. He's also on the FBI's most wanted list.

CNN's Gary Tuchman has more now on the hunt.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): The tip came in a phone call. FBI Fugitive Warren Jeffs had been spotted last Friday. The tipster, saying that Jeffs was inside a house in this neighborhood in Cedar City, Utah, 65 miles north of Colorado City, Arizona where his fundamentalist church is based.

Police, a SWAT team, a canine unit arrived at the scene.

UNIDENTIFIED MALE: We went inside the home. We obtained permission to search.

TUCHMAN: Police demanded the occupants of the house walk out. Holly Shumway lives on the same block.

HOLLY SHUMWAY, NEIGHBOR: And then one lady came out. And she was handcuffed out here for a little while. And they were announcing over the speaker, please come out with your hands up in a single file line and bring the kids out.

TUCHMAN: At left three women and seven children walked out of the home. The pictures are poignant, because the children, some very small, listened to the police and their mothers and held up their hands.

A police dog aggressively sniffed over a hole in the ground next to the house. Police with their helmets, vests and weapons stood guard.

SHUMWAY: It was scary. It was just scary because if anything happened, you know, bullets travel. And so we were a little worried.

TUCHMAN: Police say the house is owned by a man who either is or was one of Warren Jeff's bodyguards. Something that concerned the FBI when they put Jeffs on the 10 most wanted list.

KEITH BENNETT, FBI, PHOENIX: There are allegations that he does travel with armed bodyguards. And that contributes to the statement of his dangerousness.

TUCHMAN: Jeffs is wanted on sex crime charges in Utah and Arizona, in connection with arranged marriages of underage girls to men.

Police combed the house for more than two hour and when it was all said and done...

UNIDENTIFIED MALE: We searched the home for persons and Warren Jeffs has not been found.

TUCHMAN: Also not found, any evidence that he had been there. And no arrests of any kind were made.

As it turns out, the man the tipster said was Warren Jeffs was actually an air conditioning repairman. So the nationwide search continues.

(END VIDEOTAPE)

COOPER: And how is the search going? I mean, are they any closer to finding Warren Jeffs?

TUCHMAN (on camera): I will tell you, they thought they were very close when this raid took place. The tip was reliable. They knew that the house was owned by an associate of Jeffs. And that's why they had that firepower there.

They felt terrible, the police, that those children came out with their hands raised up. It was incredible watching that. But they thought Jeffs was inside that house. He wasn't. They were disappointed. They have gotten tips, but have not gotten close.

One thing we should tell you is that they are not getting help from the people in Colorado City because Warren Jeffs tells the people in Colorado City not to talk. His followers should never talk to authorities, should never talk to members of the media.

And we experienced their hospitality firsthand when we went there.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN CORRESPONDENT (voice-over): In Colorado City, Arizona, the American flag flies. But most of the citizens pledge allegiance to Warren Jeffs.

(On camera): What do you think of the man?

UNIDENTIFIED MALE: I think he's awesome.

TUCHMAN (voice-over): The FBI fugitive has instructed his followers not to talk to the news media. Almost always that demand is strictly obeyed.

(On camera): Can I ask you a quick question? I'm Gary Tuchman with CNN. I just wanted to check with you. Do you have any idea where Warren Jeffs is? Any idea at all? I just wanted to ask you if you have any idea where Warren Jeffs is.

(Voice-over): The police department, where the chief is also a member of Jeffs' FLDS church, doesn't return repeated phone calls.

(On camera): Anybody there?

And the cops have no interest in speaking when we stop by. They don't even speak to a county attorney special agent who's been here for 18 months investigating Jeffs and his supporters.

UNIDENTIFIED MALE: Well it is bizarre, but then again we are here in Colorado City. Every one of the police officers are FLDS members. You know, they've sworn to follow Warren Jeffs.

TUCHMAN: We travel a lot in this job. Rarely do we go anywhere where we feel so unwelcome as this place. For the most part, when we come up to people, they scatter. May I ask you a quick question?

(Voice-over): But in this town of about 9,000 where Warren Jeffs lived in this house before he went underground, some coaxing did result in some comments.

(On camera): Hey, do you know where Warren Jeffs is?

UNIDENTIFIED MALE: No, sir. Ain't nobody seen him for two or three years that I know of.

TUCHMAN: What do you think of him?

UNIDENTIFIED MALE: He's a great prophet. And you're damn fools for bothering him. Because your ass is going to get hung one of these days when you look up from hell and look at him in the face.

TUCHMAN (voice-over): Jeffs' very passionate followers also believe his father, Rulon, was a prophet. Rulon died in 2002 and is buried here in town. Warren Jeffs has been the FLDS leader since then.

(On camera): Do you have any idea where Warren Jeffs is right now?

UNIDENTIFIED MALE: No, I don't.

TUCHMAN: When was the last time you saw him?

UNIDENTIFIED MALE: About three years ago.

TUCHMAN: So you don't -- do you think he's been back to Colorado City at all?

UNIDENTIFIED MALE: He could have. I mean that's none of my business, though.

TUCHMAN: How come? You're a follower of him, and you think he's a prophet, and you think he's the greatest man on earth.

UNIDENTIFIED MALE: He can do what he needs to do and I don't have to know about it.

TUCHMAN: And how are you able to continue following his way if you don't see him or hear of him?

UNIDENTIFIED MALE: The words that he's already given us.

TUCHMAN (voice-over): Investigator Engels says his presence is not welcomed either. And he's occasionally harassed.

GARY ENGELS, MOHAVE COUNTY, ARIZONA INVESTIGATOR: Sometimes if they're stopped at a stop sign or something, they'll try to take off real fast, throwing gravel on my vehicle or the diesels, you know, they'll accelerate real fast, blowing a lot of black smoke out.

TUCHMAN: Well, lo and behold, we got a similar experience. The FBI may have Warren Jeffs on its 10 most wanted list, but what most people here want...

UNIDENTIFIED MALE: You guys are all damn idiots.

TUCHMAN (on camera): ... is for us to get out of town.

(END VIDEOTAPE)

COOPER: You know, it's just fascinating that the police force in this town are all followers of Warren Jeffs. What's it like as a reporter being in that town?

TUCHMAN: I don't think I've ever been to a place or ever covered a story where I felt so unwanted. And I don't say that for our viewers to feel sorry for me. It was just so notable.

But the fact is, yes that elderly man was angry. But for most of the time we were there, we didn't see angry people, we saw scared people. We saw people who had been told by Warren Jeffs, you are not to talk to authorities, you are not to talk to members of the news media. And they didn't want to be seen talking to us.

And I will tell, Anderson, that if Warren Jeffs declared you all should go bungee jumping off the cliffs on the border of Arizona-Utah, most of those people would do that.

COOPER: Still, even though he's been on the run for so long. It's fascinating.

Gary Tuchman, thanks. Amazing.

A look at a much different religion coming up. You're sure to chuckle. And that's OK.

But first, Erica Hill, from "HEADLINE NEWS," has some of the business stories we're following -- Erica.

HILL: Anderson, stocks edged higher on Wall Street. The Dow gaining 73 points, the NASDAQ climbed one, and the S&P 500 added three.

Helping out the Dow, the Florida Supreme Court, which upheld a lower court decision to throw out a $145 billion punitive damage award against big tobacco. The court did say cigarette makers misled people about the dangers of smoking. Though it called the class-action payout too excessive. Instead it OK'd payouts for some individual smokers.

In Houston, Texas, not what former Enron workers want to hear. Legal experts say Kenneth Lay's conviction for fraud and conspiracy could be erased because before his sudden death yesterday, Lay was appealing the verdict. And that would mean prosecutors couldn't seize millions of Lay's assets. But a battle over his estate could play out in civil courts.

In Atlanta, Georgia, another legal battle. A Coca-Cola employee and two others in court, accused of stealing and then trying to sell trade secrets to rival soft drink maker Pepsi. The reported price tag for the alleged deal, $1.5 million. Anderson, that's just the craziest story to me.

COOPER: It is. Yes. It is bizarre. Who knew?

HILL: Luckily someone did know. They stopped it.

COOPER: Erica, thanks.

Well, after a tough day, you might be needing a good laugh. We know just the place to go. Take a look.

(LAUGHTER)

COOPER: Coming up, we'll take you inside a church where laughter is said to be a blessing and is contagious, coming up on 360. (COMMERCIAL BREAK)

COOPER: Well, flashback to 1963. "The New York Times" reported a strange illness in Africa along the shores of Lake Victoria. The trouble, an epidemic of laughter. More than 1,000 people, mostly children, who could not stop laughing. In one village, an entire school was said to have shut down. Scientists had no explanation for the outbreak of hysteria.

Today, here in the U.S., contagious laughter sprouted up again at a Florida church. But this, they say, is holy laughter.

CNN's Tom Foreman explains.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice over): On a warm night in Tampa, young people are out looking for laughs. But hundreds are bypassing comedy clubs, to get their chuckles at church.

And guffaws, roars, screams, all standard fare at the laughing church, where Dr. Rodney Howard-Browne says the Holy Spirit is making folks howl.

PASTOR RODNEY HOWARD-BROWNE, REVIVAL MINISTRIES: They laugh and they're crying, they're shaking, they're falling out of their seats. And I knew it had nothing to do with me. Because you cannot take a crowd and make them do that.

FOREMAN (on camera): You don't buy the fact that you're a funny guy?

HOWARD-BROWNE: Well, I use a lot of humor because I do use humor, but that's just the way I am.

Because I've got news for you, he arose. He ascended on high.

FOREMAN (voice-over): This is worship for Reverend Howard-Browne and his thousands of followers.

HOWARD-BROWNE: He is coming back! He is coming back! King of kings and Lord of lords!

FOREMAN: Unlike other Pentecostal Christians who speak in tongues, these people say the joy of salvation makes them laugh uncontrollably.

UNIDENTIFIED FEMALE: It's the most amazing feeling. I can't explain it.

UNIDENTIFIED MALE: Flying high. Flying high.

FOREMAN (on camera): What is it?

UNIDENTIFIED FEMALE: It's the Holy Spirit.

FOREMAN: Look at this. Oh, my.

HOWARD-BROWNE: This is my little piece of Africa.

FOREMAN (voice-over): Howard-Browne was once a little known South African preacher and part-time big game hunter. But he and his wife, Adonica (ph), have fostered a global outreach program based in America and staffed by 70 people, all enthralled with holy laughter.

(On camera): The preacher says believers overcome with laughter have been recorded since ancient times in biblical passages about unrestrained joy. Yet it remains controversial. Almost unknown in most other churches.

HOWARD-BROWNE: Because religion always wants to beat you down and make you dependent upon, it's like a drug. If I can make you feel guilty, then you'll come back next week and then I'll keep you in that place of guilt.

FOREMAN: that's a very cynical view of religion.

HOWARD-BROWNE: Well, maybe I have a hard time with religion because I see what it is doing around the world. Religion feels its job is to condemn. Jesus didn't come to condemn.

(SINGING)

FOREMAN (voice-over): Howard-Browne himself has suffered great sorrow. On Christmas morning 2002, his 18-year-old daughter Kelly died in his arms of cystic fibrosis. A loss he lays at the devil's doorstep.

Is this about revenge?

HOWARD-BROWNE: For me? It probably is. Only way I can hurt him is by seeing people touched and set free.

(SINGING)

FOREMAN: Many people say they are touched. Some laugh for minutes, some for hours. Howard-Browne blesses them all, the saved and the skeptics alike.

UNIDENTIFIED FEMALE: And I thought, God, you've got to be kidding me if you want me to go to this church.

HOWARD-BROWNE: Church should be the happiest place on the earth. People that love Jesus should be happy.

FOREMAN: And they certainly seem to be. Here where Rodney Howard-Browne sends the devil on the run and God always gets the last laugh.

Tom Foreman, CNN, Tampa.

(END VIDEOTAPE) COOPER: Well from laughter to big smiles, a wonderful update on a story we told you last night about the orphaned pets of Katrina. That's next on 360.

(COMMERCIAL BREAK)

On last night's program we met one of the American heroes helping to rebuild the gulf, Sam Bailey. He runs the Pontchartrain Humane Society in Pearlington, Mississippi.

Since Katrina hit, he's been struggling to protect dozens of abandoned animals. After our story aired, his Web site received 11,000 hits, between 11:00 p.m., Eastern, and 6:00 a.m., this morning.

He's already received hundreds of e-mails from people interested in helping out. Those are some of the animals up for adoption. That little dog right there, a German Shepherd/Border Collie mix, they called Kelly is going to a good home. We have been told she's been adopted now by Pop Star Kelly Clarkson. She saw the show and apparently fell in love.

(SINGING)

COOPER: There you, that's a little Kelly Clarkson music. She apparently saw the show, fell in love with her namesake. And we're told the dog is going to go to her.

So once again, here is the info. If you with like to help, the number for the Pontchartrain Humane Society is 985-699-9040. Web site, pontchartrainhumanesociety.org. They've got pictures of pets that need adopting, and there are a lot of them that still need adopting from Katrina. It also has a wish list, if you'd prefer to donate things like food and medicine to care for the animals that haven't yet been placed in foster homes. This guy, Sam, has basically given over his home to about 50 animals. The address is also on our blog, if you want to get it there anytime, cnn.com/360.

Tomorrow, on "AMERICAN MORNING," a CNN exclusive. Soledad O'Brien sits down with the parents of a young man who was the victim of an unspeakable crime that shocked the nation.

(BEGIN VIDEO CLIP)

MRS. GALVAN, VICTIM'S MOTHER: That is not a beating, this is something -- because he was so big and swollen. I mean, it was -- he was like four times his size. It was like, how do you beat someone like this?

(END VIDEO CLIP)

COOPER: Hear the rest of Soledad's emotional interview tomorrow on "AMERICAN MORNING," starting at 6:00 a.m., Eastern time.

"LARRY KING" is next. He has an exclusive sit down with the president and Mrs. Bush.

Thanks for watching. I'll see you tomorrow.

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