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American Morning

Response to North Korea; Mosque Bombing in Iraq; Too Close to Call in Mexican Election

Aired July 06, 2006 - 06:30   ET

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

MILES O'BRIEN, CNN ANCHOR: Good morning to you. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR: And I'm Carol Costello, in for Soledad.

Topping our news this morning, North Korea says it does not plan to stop launching missiles. The White House is working on a unified multination response. President Bush does not want to get drawn into a one-one-one negotiation with North Korea.

CNN's Tara Mergener is live from Washington to tell us more.

Good morning.

TARA MERGENER, CNN CORRESPONDENT: Good morning, Carol.

U.S. officials are saying North Korea has more long-range missiles, but the country's credibility is in question.

(BEGIN VIDEOTAPE)

MERGENER (voice over): President Bush says the U.S. and North Korea's neighbors are speaking with one voice, denouncing the north's missile tests.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We must work together to continue to work hard to convince the North Korean leader to give up any weapons program.

MERGENER: North Korea defends the launches and promises more. The north says it will have no option but to take stronger action if other countries interfere with the tests.

Wednesday, the United Nations Security Council met in emergency session to decide how to deal with North Korea's actions.

JOHN BOLTON, U.S. AMBASSADOR TO U.N.: No member defended what the North Koreans have done.

MERGENER: The U.S., Britain and Japan want to slap the country with sanctions. But China and Russia are urging a weaker response.

CHRISTOPHER HILL, UNDERSECRETARY OF STATE: This was not an affront against the United States. It was really an affront against all of us. MERGENER: The U.S. military is analyzing data on the test missiles, especially the long-rang missile. But the president is playing down any threat to the United States.

BUSH: One thing we have learned is that the rocket didn't stay up very long. It tumbled into the sea, which -- which doesn't frankly diminish my -- my desire to solve this problem.

(END VIDEOTAPE)

MERGENER: And a spokesman for North Korea says the country has a legitimate right as a sovereign state to test its missiles.

Live in Washington this morning, I'm Tara Mergener.

Carol, back to you.

COSTELLO: Thanks, Tara.

O'BRIEN: A bombing in Iraq this morning. The apparent target, Iranian pilgrims at a mosque. It happened at a mosque in the southern city of Kufa. A car bomb exploded near some buses carrying the pilgrims. At least 11 killed, dozens wounded.

Arwa Damon live for us from Baghdad with more -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Miles.

That's right, it was the Maytham al-Tammar mosque located in the city of Kufa, just outside of Najaf. A car bomb detonated there, killing at least 11 individuals who were leaving from the mosque, about to get onto this bus, wounding at least 51.

We are told by Iraqi police that the majority of them were Iranian pilgrims. There has been quite an influx of Iranian pilgrims to Iraq since the fall of Saddam Hussein to make pilgrimages to a number of religious Shia sites that are located here in this country.

Also, more violence. Earlier this morning, three civilians were killed in a gun battle in southern Baghdad in the area of Al Dura (ph), when a gun battle broke up between armed gunmen and Iraqi -- and the Iraqi army.

Now, this follows and early morning raid conducted by both Iraqi and U.S. forces in which they -- they detained seven suspected insurgents. Along with them, videotapes showing individuals being tortured -- Miles.

O'BRIEN: Arwa Damon in Baghdad.

Thank you very much.

Happening "In America" this morning, New Jersey Governor Jon Corzine will speak to the state legislature again this morning. The budget standoff grinding into its sixth day. Still no dice. Democrats in the assembly are offering a compromised plan that doesn't include Corzine's proposed sales tax increase. Unions representing about 80,000 of out-of-work state workers, casino workers, plan a rally outside the capitol today.

In Rhode Island, investigators trying to find out what caused a small plane to cash shortly after takeoff, killing all three aboard. The Coast Guard launched a search when the plane failed to appear on radar after being cleared for takeoff. It was found a few hours later in a wooded area on Block Island.

In California, more protesters arrested for trying to stop the bulldozing of a 14-acre urban garden in Los Angeles. They tried to stuff vegetables in the bulldozer's tailpipes, but they weren't able to stop the land from being plowed under. This is the same project that actress Daryl Hannah was protesting when we saw her up there in that tree.

Border Collies now patrolling the Foster Avenue Beach in Chicago. They used to chase away gulls. Officials say gull droppings are raising dangerous bacteria levels in the water and making it unhealthy for swimmers.

Maybe they need that for the shuttle.

An earthen dam in Rockville, Maryland, is no longer leaking. But it's now been declared unsafe. You'll remember we were watching that dam awfully closely during the floods last week. The leaks led to the evacuation of more than 2,000 people downstream. Engineers will now have to come up with a plan to make the dam safe.

Staying with last week's floods here, five more Pennsylvania counties now get federal aid as a result. The disaster declaration will help them pay for temporary housing repairs and all that kind of thing. Five other Pennsylvania counties already getting federal aid. Delaware's Sussex County also just added to that list.

And in New York, they're still assessing damage from the flooding. Right now, the count is 1,000 homes destroyed, but damage from seven counties hasn't been factored into that count yet.

A special taskforce is working to help those who lost their homes. Less than 5 percent of people in New York have flood insurance.

Time for a check of the forecast.

Chad Myers, there are certain places in New York you wouldn't think to get flood insurance, would you?

CHAD MYERS, CNN METEOROLOGIST: Well, exactly.

(WEATHER REPORT)

COSTELLO: Still to come, Microsoft news that's music to the ears. Andy's got details of a new digital music player that could be even better than the iPod.

O'BRIEN: We'll see about that, won't we?

COSTELLO: Wow.

O'BRIEN: Then, we're live in Mexico City. We'll have the latest numbers on this razor-thin presidential count there and recount.

COSTELLO: And a mother's grief turns to anger and then to activism, now doing her part to put a stop to illegal weapons.

We'll bring you her story just ahead.

(COMMERCIAL BREAK)

COSTELLO: China is taking steps to cool the anger over North Korea. That tops our look at stories CNN correspondents around the world are covering today.

(BEGIN VIDEOTAPE)

JAIME FLORCRUZ, CNN CORRESPONDENT: This is Jaime FlorCruz in Beijing, where U.S. Undersecretary of State Christopher Hill is expected to arrive any time soon today. He will meet his Chinese counterpart, and on top of their agenda, just what to do with North Korea.

That's the same question we asked in a press briefing where I just came from today. The foreign ministry spokesman just repeating in so many ways China's official position, which is China is very seriously concerned over North Korea's missile tests, but it also cautions everybody to remain calm and restrained. China hopes to restart the six party talks by having more dialogue and negotiations with all the six parties concerned, including the United States and North Korea.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT: I'm Paula Hancocks in Gaza City.

Violent crashes between Palestinians and Israeli military have stepped up in the past 24 hours. Just behind me there's been heavy gunfire, and Israel Apache helicopters have been circling overhead for much of the morning.

In northern Gaza, Israeli troops and tanks have reoccupied three former Jewish settlements, settlements they left last summer after 38 years of occupation.

Still no word on the fate of the kidnapped Israeli soldier.

(END VIDEOTAPE) O'BRIEN: It's a cliffhanger south of the border, and now it appears conservative Felipe Calderon may have won the Mexican presidency by less than a whisker. They're still counting; it's been three days since the voting. The margin between Calderon and the next candidate down in the list, less than 100th of a percent.

CNN's Harris Whitbeck live now from Mexico City with more -- Harris.

HARRIS WHITBECK, CNN CORRESPONDENT: Hello, Miles.

It's been a long day and long night here at the Federal Electoral Institute in Mexico City, where officials are just about to conclude a revision of the tallies in all the electoral districts in Mexico City. That, because the election that took place on Sunday was too close to call.

As you said, official candidate Felipe Calderon is one step closer to being declared the official winner. The results of the tally indicate that he is in the lead by a very, very slim margin.

Calderon, who is a member of President Fox's party, favors free trade with the United States, he favors continuing with Mexico's economic model, and favors U.S. -- more U.S. investment in Mexico to avoid more Mexicans -- prevent more Mexicans from having to go into the United States looking for work. His campaign has been at odds with that of his opponent, Andres Manuel Lopez Obrador, a leftist who was proposing a change in Mexico's economic model.

Again, it will be a few more days before Calderon's win is declared to be official. His opponent is expected to challenge his election in the electoral courts here, and that challenge could last -- that process could last several weeks before it's all sorted out -- Miles.

O'BRIEN: Well, Harris, while that's all being sorted out in the courts, will everything remain on hold, or will the process continue and will the president be put toward being put in office?

WHITBECK: Well, the process will continue in the courts, and it's up to the courts -- the electoral courts to decide on the challenges that will be put forth. They have until September 9th to declare a winner. That is according to Mexican law.

Many analysts feel it won't take that long. But they are expecting at least a few days, if not a couple of weeks, of a bit of uncertainty here.

However, the numbers do seem to indicate that Felipe Calderon won the election. Again, it was an extremely tight race, the closest in Mexican history. But the process itself has been lauded by many international observers who were here in Mexico observing the process. There was a big delegation from the European Union, and they said that they feel that the electoral process itself was fair and clean -- Miles.

O'BRIEN: Harris Whitbeck in Mexico City.

Thank you very much.

For more on these and any of our top stories, we invite you to head to CNN.com -- Carol.

COSTELLO: And still to come on AMERICAN MORNING, the great cola caper, how three suspects got caught read-handed trying to sell Coke's trade secrets to rival Pepsi.

But first, a grieving mother helps rally the world to do something about gun violence.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning, North Korea says its missile tests will continue. It defends its actions as a matter of self- defense.

Here's a bizarre twist in the cola wars. A Coca-Cola employee, two others, charged with trying to sell company secrets to Pepsi. It was Pepsi that alerted Coke to the alleged scam, as well as the FBI. The suspects appear in an Atlanta courtroom today.

The space shuttle Discovery docking with the International Space Station in a few hours. During the approach, Commander Steve Lindsey will fly a somersault so the station crew can inspect Discovery's heat shield, which so far looks good.

COSTELLO: Newark, New Jersey, has had more than 50 murders already this year. A police taskforce that includes federal agencies has zeroed in on gangs and gun crimes to try to end the violence.

CNN's Liz Neisloss has the story of one mother whose son was murdered in the city and how that's changed her life.

(BEGIN VIDEOTAPE)

KARIN WILSON, SON SHOT TO DEATH: This is the last photo that we took together.

LIZ NEISLOSS, CNN CORRESPONDENT (voice over): Karin Wilson lost her son seven years ago, shot and killed in a robbery in Newark, New Jersey.

WILSON: They shot at him seven times, I found out. And the last bullet connected with his brain.

NEISLOSS: In her own neighborhood, Karin says she's learned to tell the difference between a gunshot and a firecracker. Still, she had to see the crime scene to understand her own son's death.

WILSON: It was like a gallon of red paint which was really my baby's blood. NEISLOSS: Wilson's anger brought her to a meeting on guns at the United Nations, keeping the pressure on to curb the global flood of illegal weapons.

WILSON: And I have to do all I can to save everybody's children. I couldn't save my son, but maybe I can save yours or anyone watching me.

NEISLOSS: Most guns are produced and sold legally, but large gaps in weapons tracking and trading makes it easy for them end to up in the wrong hands. And each year, an estimated total of eight million new guns come on the market.

At the U.N., Karin met with other victims, literally a world apart but neighbors in suffering.

Shelly Barry (ph) is from Cape Town, South Africa.

UNIDENTIFIED FEMALE: I was on my way to a job interview when we were shot at point blank range. The bullets went through my spinal cord, punctured both my lungs, cut through several ribs. And I will never walk again.

WILSON: Hi. My name is Karin Wilson. I live in Brooklyn, New York. I'm from the United States. I'm the same as any mother that's talking about their child in any country in this world.

NEISLOSS: Officials have been meeting at the U.N. for nearly two weeks trying to hammer out an agreement among nations to strengthen national gun laws around the world. But not everyone hopes the U.N. is successful.

UNIDENTIFIED MALE: Human beings have a right to defend their lives and defend their loved ones and defend their families. And so we're here for human rights because gun rights is a human right.

WAYNE LAPIERRE, NATIONAL RIFLE ASSOCIATION: It's not an issue of firearms. It's an issue of evil people and evildoers, and you crack down on them, you take them off the streets, and you put them in prison. That stops crime, that stops evildoing.

NEISLOSS: Karin Wilson wants people to remember what it's like to be the victim of a gun-related crime.

WILSON: I say to them, I hope no one in your family ever, ever, ever becomes a victim of gun violence. I hope you never know what I feel.

NEISLOSS: Liz Neisloss, CNN, New York.

(END VIDEOTAPE)

COSTELLO: And it's a tragic projection, but Newark, New Jersey, is on pace to pass the city's 97 murders in 2005, which was the most in a decade.

O'BRIEN: Up next, Andy Serwer, "Minding Your Business."

Hello, Andy.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Hello, Miles.

Microsoft may be ready to take an iPlunge. And speaking of Apple, bad news. The lawyers are circling -- Miles.

O'BRIEN: All right. That makes me want to stay tuned.

SERWER: Good.

O'BRIEN: Like I have a choice.

Also ahead on the program, online gambling addicts say it is irresistible. We'll hear from some people who have been there and done that and can't even afford the T-shirt.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: The sharpest business guy in the business. Andy Serwer is here to tell you, this is a classic pattern. Mac, you know, develops the technology, Microsoft hangs back, waits, waits, waits, and then comes up with something that they hope will dominate.

SERWER: Yes. And we've been talking about fierce business rivals this morning with Coke versus Pepsi. Microsoft versus Apple another one.

Published reports this morning indicating that Microsoft is looking to compete.

Let me borrow your mic.

O'BRIEN: Why don't you?

SERWER: Is looking to compete with Apple on another front, introducing a portable digital music and video player by Christmastime, perhaps. And the wrinkle here is that this player will be wireless.

This is an iPod right here. It's to compete with the iPod. And so, in other words, you'll be able to download video and music wirelessly, and, of course, this is going to be tough sledding for Microsoft because Apple and iTunes, and the iTrip have such a dominant market share. Seventy percent of all music downloaded in the United States is on the iTunes Web site.

O'BRIEN: I like the wireless a lot.

SERWER: I could use a wireless situation right now.

O'BRIEN: Yes, you could, as a matter of fact.

SERWER: I'm holding my own here, as they say. Yes.

Speaking of Apple, it's being sued by a couple of law firms here. Remember last week we told you the company was wrapped up in a stock option scandal, reviewing stock options that were handed out to a number of executives, including Steve Jobs. Now the lawyers are circling.

And they are suing the company. These are derivative lawsuits where the money actually goes back to the company. Isn't that nice of the lawyers, that they would do that? Why? Well, they get big fees.

O'BRIEN: It's kind of ambulance chasing thing.

SERWER: Well...

O'BRIEN: Sort of.

SERWER: Yes -- you said that.

O'BRIEN: Right. Let the record show.

SERWER: And it's not completely inaccurate, as we like to say in this business.

And also, two other companies involved in this options scandal also in the news this morning, Mercury Interactive and Opsware. Mercury Interactive, according to the SEC, has filed what's known as a wells (ph) notice, meaning they are in the crosshairs, three directors and a chief financial officer, who is now employed by Opsware. So, she is looking at some SEC activity there.

Fifty-eight companies wrapped up in this scandal.

O'BRIEN: So what's next?

SERWER: Next, AOL, a part of Time Warner...

O'BRIEN: I've heard that.

SERWER: ... which is, CNN is also a part of Time Warner, possibly looking to give its service away for free. So we'll talk about that coming up.

COSTELLO: Really?

O'BRIEN: Wait a minute. Give its service away for free? Interesting.

COSTELLO: And that's -- OK.

O'BRIEN: All right. Once again...

(CROSSTALK)

O'BRIEN: Again, I wish to stay tuned. All right.

Thank you, Andy.

COSTELLO: It makes you very curious.

Let's head to Atlanta to check in with Chad.

Let's see, it's hot out West and it's going to be cool in the Northeast.

MYERS: OK. Back to you.

(LAUGHTER)

(WEATHER REPORT)

MYERS: The next hour of AMERICAN MORNING starts right now.

O'BRIEN: Thank you very much, Chad

A defiant North Korea may be planning more missile launches while the international community turns up the pressure.

Also this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: How do you put a swastika on somebody or burn them? You'd have to hate someone to hurt someone like that.

(END VIDEO CLIP)

O'BRIEN: A family struggles with a horrible, brutal attack on their son. We'll hear more in a CNN exclusive.

COSTELLO: You're seeing Atlantic City's casinos. They are still silent this morning. Now a late-night compromise proposal could put New Jersey close to getting back to work.

What's a soft drink secret formula? What's it worth? Three people now charged with trying to sell Coca-Cola's trade secrets, including a sample of a new drink.

O'BRIEN: And choosing TV's best. Emmy nominations less than two hours away. We'll tell you who's expected to be on the short list ahead on this AMERICAN MORNING.

Good morning to you. I'm Miles O'Brien.

COSTELLO: And I'm Carol Costello, in for Soledad.

O'BRIEN: North Korea today says it will keep on launching missiles. A divided U.N. Security Council will go back to work today trying to come up with a response to this crisis.

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