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CNN Live Today

New York City Terror Plot Revealed; President Bush to Hold Press Conference in Chicago

Aired July 07, 2006 - 10:30   ET

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


DARYN KAGAN, CNN ANCHOR: We're about a half hour away. President Bush is in Chicago today. He's holding a news conference. You're going to see that live right here on CNN.
Let's check in on New York City right now. The tunnels there, are they inroads for terrorists? CNN has learned of an alleged bombing plot, one design to unleash a deadly flood on Manhattan, similar to what Katrina did to New Orleans.

Here is what we know at this hour in this CNN "Security Watch." Sources telling us that terrorists plotted to blow up tunnels in the New York City area. It is not clear how far the plot developed, whether it ever even was past the talking stage. Minutes ago, Lebanon confirming that one person has been arrested in Beirut. Source say there is no imminent threat to American citizens. The alleged plot was uncovered in recent months.

Our senior correspondent Allan Chernoff is in the Holland Tunnel in lower Manhattan this morning to tell us a little bit more, not just what we know about the plot, but what we know about the tunnels.

Allan, good morning.

ALLAN CHERNOFF, CNN CORRESPONDENT: Good morning to you, Daryn.

And we can tell you first of all that security this morning very tight outside and inside of the Holland Tunnel. In fact, when I entered early this morning on the New Jersey side, there were armed guards in front of every single toll plaza. You typically do see police there, but not holding automatic weapons in front of every single toll plaza. So that's noteworthy just to begin.

Now, the report that we have received confirmation from counterterrorism sources is that there has been a plot to blow up tunnels in the New York region. The "Daily News" this morning is reporting on its front page that the plot actually involved the Holland Tunnel. And the idea, according to the "Daily News," was to actually blow up the Holland Tunnel and somehow send the waters of the Hudson River flowing, flooding, down to the Wall Street financial district, which is about a mile south of where I'm standing, right outside of the Hudson River.

As you can hear, work certainly continues in New York City, even with terrorist threats or not. We have jackhammers, we have people doing construction work right near us. That's the noise you hear right behind me. On to the feasibility of this whole idea. Well, first of all, the Holland Tunnel is actually two tubes. They are cast iron, a foot and a half thick, concrete reinforced. They are, at their deepest point, 93 feet below the top of the Hudson River. And they are tucked into the bed of the river. So way down. Analysis of those tunnels? Well, certainly, they are supposed to be very secure and also pretty much bomb-proof.

Engineers say the idea of actually trying to flood lower Manhattan, the financial district here, like New Orleans, that apparently is not feasible at all. Even if there were to be an explosion within the tunnel, Manhattan sits above sea level. It's not like New Orleans, which as you know, is built partially below sea level. And there are no levees here, no need for anything like that. Engineers say it's just not practical, the idea of trying to flood lower Manhattan -- Daryn.

KAGAN: All right, Allan, thank you.

And I'll have a chance to talk more and learn more about this plot and what it means for New York City, what it could have meant for New York City, when I talk with a former FBI agent in just a few minutes.

First, though, President Bush breaking bread with a top Democrat, and goes one-on-one with Chicago's media. A live report, straight ahead on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: And this just in to CNN from the FBI and also the U.S. Department of Homeland Security. They have put out a statement about this alleged bombing plot for the tunnels in lower Manhattan.

They write from Washington, D.C., quote, "Working closely with the intelligence information directorate within the internal security forces of Lebanon and with other foreign law enforcement and intelligence partners, we have disrupted a terrorist network that was in the planning stages of an attack against the transportation system in the New York/New Jersey area. A significant development in this investigation was the arrest of a key suspect by Lebanese authorities. The investigation is ongoing."

Now, to understand the idea of having these tunnels as targets, you have to know the lay of the land in New York City. Here is a bird's eye view from CNN's Miles O'Brien.

(BEGIN VIDEOTAPE)

MILES O'BRIEN, CNN ANCHOR: Our sources are telling us the plot focused on tunnels in New York City and specifically in lower Manhattan.

Let me give you the lay of the land in Manhattan. First of all, this -- of course, Manhattan is an island, 23 square miles. There it is. There are no less than 19 crossings all around. I'm not doing that entirely accurately. Tunnels and bridges in and out of Manhattan and the surrounding burroughs.

Lower Manhattan is what our sources are saying was the focus of the bombing plot. That gives two options to us. The Holland Tunnel up here and the Brooklyn Battery Tunnel down there.

The Holland Tunnel, first opened -- it goes across into the sort of the Chelsea area of New York City. It's about an 8,000-foot tunnel. Actually two tubes in that tunnel, opened in 1927. It is 93 feet below the surface of the Hudson River.

And then there is the Brooklyn Battery Tunnel, which comes across here. It's a little bit longer tunnel, about 9,000 feet in length, opened in 1950.

Now, we're told -- and we'll put the Holland Tunnel back in there -- we're told the plot was to blow up a part of the tunnel and cause a flood in the lower part of Manhattan, in the financial district, which is right in here. What's in the middle of the financial district? Of course, you know what that is. The World Trade Center site, which is right there where that green dot is.

But, on the face of it, that seems to be a rather odd plot because, of course, the financial district is above the water level of both the East River over here and the Hudson River. So the notion of blowing up a tunnel to flood the financial district, on the face of it, seems as if it's a silly, amateurish plot to say the least.

Back to you.

(END VIDEOTAPE)

KAGAN: A look at more now through the view of the eyes of a veteran law enforcement officer. Pat D'Amuro is former assistant director in charge of the New York FBI office. He joins me as a CNN security analyst. Pat, good morning.

PAT D'AMURO, CNN SECURITY ANALYST: Good morning, Daryn, how are you?

KAGAN: What is -- I'm doing fine -- what is it about al Qaeda and New York City and also financial targets?

D'AMURO: Well, if we go back to 1993, after the bombing of the...

PAT D'AMURO, CNN SECURITY ANALYST: Well, if we go back to 1993, after the bombing of the World Trade Center, there was a threat in '93 to bomb the Holland tunnel, the federal building and the U.N. That was an operation that the FBI called Operation Terror Stop. This is not new the tunnel has been threatened. Now in this particular situation we know that there supposedly tunnels in Lower Manhattan. It was not specific as to the Holland Tunnel. Could be the Battery Park Tunnel, as we just heard, or even the Path Train Tunnel.

So al Qaeda has had an infatuation with attacking the tunnels in New York. And they usually try to come back to targets that they have been unsuccessful on in the past. It would be very difficult at this stage to get an explosive device the size they would need to cause that type of damage to the Holland Tunnel through the security outlets that are now in place.

KAGAN: How frustrating is it for law enforcement? We backtracked here and they actually uncovered this a few months ago. The investigation allowed to continue, but now it's out. So the opportunity basically gone?

D'AMURO: Well, this did get released prematurely. Somebody leaked this information to the media. Law-enforcement authorities, intelligence authorities are continuing to conduct the investigation. The people that I have spoken to have said that the FBI and the Lebanese authorities have conducted a very sensitive investigation into this, and the Lebanese authority, it was actually the information directorate within the internal security force, has done an outstanding job in conducting this investigation with the New York Joint Terrorism Task Force.

KAGAN: What do you make of the Lebanon connection?

D'AMURO: Well, Lebanon is a country that has had a lot of problems in the recent past. When the Syrians left, there was intelligence indicating that they may have taken over $24 billion from the country. So they are literally fighting for their lives in Lebanon. And I've met General Rifi (ph), who is in charge of the ISF and others with that service, and they're a tremendous group of individuals dedicated to trying to protect Lebanon from any future bombings. And obviously in this situation I'm hearing that they worked very closely with FBI authorities to prevent this attack from going any further.

And I should state, it's in the very early stages of talking about this particular plot. It's an investigation that's been ongoing for about a year now.

KAGAN: How many of these plots does the public learn about?

D'AMURO: I'll tell you, there are -- when I was in the Bureau, there are numerous threats that come in every day that have to be run out by the Joint Terrorism Task Force, the FBI and other agencies on that task force. Some of them have more credibility than others. This one raises above the level and has credibility that this attack we know that they wanted to conduct in the past, they may come back to try to do it again.

KAGAN: All right, Pat D'Amuro, CNN security analyst. Pat, thank you. D'AMURO: Thanks, Daryn.

KAGAN: CNN Security Watch keeps you up to date on the safety. Stay tuned day and night for the most reliable news about your security.

President's news conference expected to start near the top of the hour. We invite you to stick around for that. We will be carrying President Bush from Chicago live. Meanwhile, the president has been burning up the phone lines, talking to world leaders about the best way to handle North Korea, specifically Kim Jong-Il's decision to test fire seven missiles earlier this week. The president says he wants to resolve things diplomatically. He discussed that strategy during an exclusive interview with CNN's Larry King.

(BEGIN VIDEO CLIP)

LARRY KING, CNN HOST: Since it's always better, one would think, to talk to somebody, would you meet with Kim Jong?

GEORGE W. BUSH, PRES. OF THE UNITED STATES: Oh, I think he'd love to have the United States sit down at the table along 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 and he looks at the world, he hears China and the United States speaking in one voice, or China, the United States, Russia, Japan and South Korea speaking with one voice.

I am into solving problems, and I'm convinced the strategy we've got is the best way to solve this problem.

(END VIDEO CLIP)

KAGAN: And President Bush, Larry King, that entire interview will be replayed right here on CNN Sunday night at 9:00 p.m. Eastern, 6:00 p.m. Pacific.

(NEWSBREAK)

KAGAN: So what is in a word? Would you rather be a himbo or a mouse potato? Why not google and find out? The dictionary trying to stay hip with a few words. I'll spell out a few of them for you, just ahead.

(COMMERCIAL BREAK)

KAGAN: In with the new and out with the old. Today the International Space Station gets some new goodies, thanks to a delivery from Shuttle Discovery. A stationary bike and an-air conditioner just a few of the new supplies. Later the shuttle will load up on space station trash -- food packages, solid waste, broken equipment, empty fuel tanks and clothes. The trash weighs up to 5,500 pounds. It will be placed in a supply vessel for disposal. It will be set free over the ocean, where it will burn up during the entry to the Earth's atmosphere. Other trash comes back to Earth and goes to a landfill.

On "THE SITUATION ROOM," an interview from space. Our John King hears about the mission from the astronauts themselves. That's 4:00 p.m. Eastern, 1:00 Pacific.

Before that, we're about 12 to 13 minutes away from President Bush holding a news conference today from Chicago. You'll see that live here on CNN.

We're back after this.

(COMMERCIAL BREAK)

KAGAN: We're about 10 minutes away from President Bush holding a news conference. He's in Chicago today. And he is inviting both national and local media to ask him questions. You'll see that live here on CNN in about 10 minutes.

Meanwhile, our Suzanne Malveaux is on the road with the president, and joins us by phone -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, hi, Daryn.

We're actually in the Museum of Science and Industry here in Chicago, and it's very interesting. They've got about 50 or so of us gathered here, a lot of local press as well as the White House press corps. The White House, of course, is hoping to shake things up a little bit and send out a message to the American people that the president is confident and eager to answer questions from local reporters to address some of the concerns of everyday Americans in the heartland.

And what they hope to accomplish by this, in their new public relations campaign, is to send a message here, that the White House is responsive and Republicans are responsive. They are looking ahead at the congressional mid-term elections and certainly hope that that's the message they're sending.

KAGAN: And Suzanne, this type of news conference, this is the first of a few the president plans to do?

MALVEAUX: Well, he's going to be doing a lot of campaigning. He's going to be on the road a lot more often in the August heat. We spent a good deal of the month in Crawford, Texas, at his ranch. But we're told to expect a lot of day trips on the road. And the hope here is that people will pay attention to the president's domestic and international agenda, and that this will be a much more comfortable way for the president to communicate.

KAGAN: All right, Suzanne, thank you. Once again, that news conference, less than ten minutes away. You'll see it live here on CNN.

All right, a picture for you to take a look at right now. See this? You may never see it again. New Jersey casinos completely empty. They get to reopen today. So is New Jersey state government. Lawmakers and Governor Jon Corzine reached a budget agreement, ending a six-day standoff. The compromise will boost the sales tax 1 percent. Half of those funds will go toward property tax relief. The remaining half will be used to balance the budget as required by the state constitution.

(MARKET REPORT)

KAGAN: They are off. Let's take a look. The bulls on a mission, clearing the streets of Pamplona, Spain. Thousands turning out for the annual running of the bulls. It's not all fun and games. More than a half dozen people were injured. I know you're shocked by that one. Reuters reports a New York man was paralyzed. Other runners were gored or trampled. In one year we'll figure out why, why, why.

OK. We know what we will be seeing at the top of the hour. We'll be seeing -- and who. We'll be seeing President Bush. That's a live picture from Chicago. And the president holding a news conference from there. Both local and national media participating in that. And you'll see it live here on CNN.

(WEATHER REPORT)

KAGAN: Once again, we're minutes away from President Bush holding his news conference live from Chicago. You will see it right here on CNN. You are watching CNN, the most trusted name in news. We're back after this.

(COMMERCIAL BREAK)

KAGAN: Just minutes away. You're looking at live pictures of Chicago, Illinois. This is where President Bush has chosen to have a news conference today. Both members of the local and the national media. President Bush saying the U.S. is taking a lead role in solving many of the world's problems, from rogue nations to terrorism. And we will hear from him and see him in just a few minutes.

While we wait for the president, let's get to some other news of the day, including what is happening in the New York City. The tunnels there, that's the focus. Could terrorists turn them into weapons? CNN has learned of one alleged plot, bombs unleashing deadly floods on Manhattan similar to those that swallowed New Orleans.

Here's what we know in this CNN "Security Watch." Sources telling us that terrorists were plotting to blow up tunnels in the New York City area. Not clear how far that plot developed, whether it ever even got past talking stage. Minutes ago, Lebanon confirmed that one person has been arrested in Beirut. Sources say there is no imminent threat to American citizens. The alleged plot was uncovered in recent months.

CNN "Security Watch" keeps you up to date on safety. Stay tuned day and night for the most reliable news about your security.

So while we're waiting for the presidential news conference -- which is expected at any minute now, by the way -- let's talk about President Bush, who says that the U.S. is taking a lead role in solving many of the world's problems, from rogue nations to terrorism. Last night, he was on CNN's "LARRY KING LIVE." The president Larry that America does not act alone.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The U.S. is in the lead in solving a lot of problems. We're obviously in the lead when it comes to Iraq. We're helping a coalition of NATO allies in Afghanistan. And we have -- we're working with, you know, these multiparty talks for Iran and North Korea. In other words, we've laid the foundation and the framework necessary to achieve, you know, common goals.

We're leading an effort of other nations. You know, some people say, well, the -- America's unilateral in nation. Quite the contrary. We've set up multilateral frameworks to solve these problems. Problems don't get solved overnight. But this government has got enough capacity and enough talent to deal with a myriad of problems at the same time.

(END VIDEO CLIP)

KAGAN: So there you have President Bush. He taped that interview on his 60th birthday. He and the first lady sat down with Larry yesterday. That entire interview, by the way, is going to replay on Sunday night. Sunday, 9:00 p.m. Eastern, 6:00 Pacific, right here on CNN.

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