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American Morning

New York City Terror Plot Uncovered; One-Year Anniversary of London Bombings; Crucial Negotiations Underway on North Korea Missile Threat

Aired July 07, 2006 - 08:00   ET

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

MILES O'BRIEN, CNN ANCHOR: A terror plot uncovered. News now that New York City's tunnels and commuters were the target. A CNN Security Watch for u.
CAROL COSTELLO, CNN ANCHOR: Observing a solemn anniversary. Londoners today remembering the 52 killed by suicide bombers one year ago today.

O'BRIEN: Crucial negotiations underway in Asia. The top U.S. representative discussing concerns over North Korea's missile testing.

That's ahead on this AMERICAN MORNING.

Good morning to you.

I'm Miles O'Brien.

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

O'BRIEN: We begin with a CNN Security Watch. On the same day we're marking the year anniversary of the London terror bombings, here in New York City, a new possible terror plot coming to light. One man under arrest in Beirut, suspected of plotting to blow up New York commuter tunnels.

The "New York Daily News" reporting that al Qaeda was backing an attack on the Holland Tunnel, specifically.

CNN's Allan Chernoff live outside the Holland Tunnel with more -- Allan, what do we know?

ALLAN CHERNOFF, CNN CORRESPONDENT: Well, good morning to you, Miles.

I can tell you that there is very high security both outside and inside of the Holland Tunnel this morning. And right behind me, you can see the Holland Tunnel entrance on the Manhattan side. I entered on the New Jersey side earlier this morning and there were armed guards in front of every single toll plaza.

All of this after counter-terrorism experts and sources have confirmed to CNN's Kelli Arena that, indeed, there had been a plot to blow up tunnels in the New York area.

And according to "The Daily News" this morning, the target had been the Holland Tunnel.

As you mentioned, one person has been detained in Beirut in connection with this plot, a person by the name of Amir Andalousli. And other people being sought in connection with this plot. Reportedly some backing from al Qaeda, at least a pledge of financial and tactical support.

Now, this would not have been a very easy thing to pull off. According to "The Daily News," the whole idea was to blow up the Holland Tunnel and then hope to actually flood the financial district, which is nearly a mile south of where I'm standing right now.

The Holland Tunnel, of course, extending underneath the Hudson River, connecting Manhattan to New Jersey. But at its deepest point, that tunnel is 93 feet down below the river. It is protected by concrete. It is also protected by cast iron steel inside of the tunnel. There are cameras every 200 feet or so. Every inch of that tunnel can be observed.

Also, major tractor-trailers are not permitted inside of the Holland Tunnel.

So certainly the Port Authority of New York which does -- New York and New Jersey -- which does operate the tunnel, they certainly, of course, have as much security in place as they possibly can.

But, of course, who can say what might have happened -- Miles, back to you.

O'BRIEN: Allan Chernoff at the Holland Tunnel in lower Manhattan.

Thank you -- Carol.

COSTELLO: And while we are dealing with this latest threat, London is dealing with its own tragedy one year past today. There is heightened security this morning as people gather to remember the London train bombings. Fifty-two people killed in those suicide attacks. And one of the city's top constables says another attack is still possible.

CNN's Matthew Chance live at the King's Cross Station in London -- good morning.

MATTHEW CHANCE, CNN CORRESPONDENT: Thanks, Carol.

A day of remembrance across this city, across this country, as Britain marks the first anniversary of the London bomb attacks, in which, of course, 52 people were killed and hundreds were injured.

It's been a very difficult day in a country where some of the wounds have yet to heal.

(BEGIN VIDEOTAPE)

CHANCE (voice-over): You could forget it ever happened. Commuters still crowd London's streets. Packed trains and buses still crisscross the British capital.

But scratch the surface, and people remember. People like Katharine (ph), on an underground train a year ago, when a powerful explosive ripped through her compartment.

KATHARINE: All the doors and windows were blown out, so I was able to -- to jump out of one of the doors with the help of a very nice gentleman. And, yes, but I walked out of there. And yet I had so much open wounds and open skin on my legs and on my face, and I felt zero pain.

CHANCE: Acts of terror that shook this city. Suicide bombings carried out by homegrown militants. The target? Innocent Londoners, killed and maimed on their way to work.

And this has been one response -- 12 months of arrests and police raids targeting suspected militants. Police say new leads from intelligence sources on potential threats are still streaming in.

PETER CLARKE, ANTI-TERRORISM COORDINATOR: We have charged 41 people since last summer with terrorism offenses in the United Kingdom. That's unprecedented. There are now some 60 people awaiting trial on terrorist charges in the U.K. That, too, is unprecedented. The level of investigation is not abating. If anything, it's getting more intense.

CHANCE: More intense in a country with little outward sign it's feeling the pressure.

(on camera): So on the face of it, London appears to have bounced back. Gone are the concerns so acute a year ago about traveling on the city's transport system. And the place feels like the buzzing capital it was before the bombings last year.

But figures from a latest survey suggest all is not well. A big gap has opened up between some British Muslims and the rest of the country.

(voice-over): The numbers are unsettling. According to the survey, 13 percent of British Muslims view the London bombers as martyrs. Seven percent believe suicide attacks in Britain can be justified. Another 2 percent say they'd be proud if a family members joined al Qaeda.

Community leaders point out the figures still refer to a tiny minority of Britain's 1.6 million Muslims and insist police and government policy are partially to blame.

DR. MOHAMMAD BARI, MUSLIM LEADER: There is a serious perception in the community that the police have got wrong in their intelligence. And that's why we have seen high profile arrests only to be seen that they are released without any charge. So this gives the perception in the community that the community probably is targeted.

CHANCE: Police raids have experience targeted British Muslims. One was even shot and injured before being released. Some critics argue the country has turned against them in the wake of the bomb attacks.

But many ordinary Britons, even survivors like Katharine, say they, at least, bear no grudge, even against those who inflicted such pain.

KATHARINE: I pray for them and I feel sorry for their families. I think about, for instance, the mother and the brothers and sisters of this -- of the bomber and I can just imagine the pain that they must feel.

But I do forgive them.

(END VIDEOTAPE)

CHANCE: Well, throughout the course of this day, there have been a number of poignant memorial events designed, say the organizers, to try and bridge that divide -- Carol.

COSTELLO: Matthew Chance reporting live for us from London this morning.

Thanks.

And stay tuned to CNN day and night for the most reliable news about your security.

O'BRIEN: America's top negotiator on North Korea is on his way to Seoul, South Korea right now. Undersecretary of State Christopher Hill has already spoken with Chinese leaders today and they agree North Korea must return to the six nation disarmament talks.

Suzanne Malveaux live in Chicago, where President Bush will hold a news conference in just a few hours. And clearly North Korea is going to be right at the top of the agenda -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, absolutely, Miles.

And, of course, President Bush trying to shake things up a little bit in Chicago. It was last night he had a birthday bash with the mayor, Richard Daley, and, of course, a fundraiser for a Republican gubernatorial candidate.

But he is also engaged in this renewed campaign to bring his domestic and international agenda directly to the American people. A press conference in a couple of hours, not only taking questions from us, but local reporters.

The top of the agenda is going to be North Korea and how this administration is handling that.

Within the last 24 or 48 hours, President Bush has been on the phone with world leaders from Japan, South Korea, Russia, China, all trying to push forward tough economic sanctions against North Korea. That group has been divided, clearly divided. Russia and China balking at that idea. Others backing the president and the United States and Japan on that initiative.

But as we heard from President Bush yesterday, from Larry King, in his exclusive interview, he says the strategy here is not to isolate the United States and have a standoff with North Korea, but bring all of the members of the six party talks together to convince it to give up its nuclear program.

(BEGIN VIDEO CLIP FROM "LARRY KING LIVE")

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

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Oh, I think that's -- 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 one voice or China, the United States, Russia, Japan and South Korea speaking with one voice.

Now, 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)

MALVEAUX: So, Miles, of course, the big question whether or not the president really has the standing, the credibility here, to bring those sides together, to convince those, specifically those leaders of Russia and China, to get tougher on North Korea. He'll have a chance to make that case when next week he travels to Germany and Russia for the G8 summit -- Miles.

O'BRIEN: Suzanne Malveaux in Chicago.

Thank you.

CNN planning to bring you live coverage of the president's news conference, live, 10:50 a.m. Eastern time -- Carol.

COSTELLO: And he'll have a beautiful -- beautiful weather in Chicago, Chad.

CHAD MYERS, CNN METEOROLOGIST: Yes, 55 there right now.

(WEATHER REPORT)

COSTELLO: More on that developing story out of New York in just a minute. An apparent terror plot to bomb tunnels around the city. We'll ask New York Senator Charles Schumer what he knows about those reports.

O'BRIEN: Also, a new terror tape released just days -- just before, on the eve of today's anniversary of the London subway bombings. Does it mean more attacks are imminent?

COSTELLO: And later, an Ohio man tells us how he ended up fighting in Iraq all because of a clerical error.

Stay with us.

(COMMERCIAL BREAK)

COSTELLO: New York City again a target for terror. A plot uncovered targeting the city's tunnels and millions of commuters.

For more on this, let's bring in New York Senator Charles Schumer, who joins us now by phone.

Good morning, Senator.

SEN. CHARLES SCHUMER (D), NEW YORK: Good morning, Carol.

COSTELLO: OK, this is what's swirling around out there about this alleged plot. Al-Zarqawi and Al Qaeda of Iraq were supposed to send money to a man in Beirut, who was working with maybe six or seven other people. And they were supposed to set up something in the United States, in New York, for someone to bring a loaded truck of -- a truck loaded with explosives through the Holland Tunnel, blow it up and flood lower Manhattan.

First of all, are all of those details true?

And what are you hearing?

SCHUMER: Well, what I -- what you've heard is correct, just to fill in some of the details. This was caught in its very early stages. There is no evidence in any way that anything was done, either purchase of explosives, even the sending of money. It was caught by the terrorists talking to one another.

So this is one instance where intelligence was on the ball.

Second, these don't seem to be the brightest bulbs in the terrorist lot (ph). Their plan made no sense. The Lincoln tunnel is below sea level. The waters are below sea level. And if you were to blow up the Lincoln tunnel, god forbid, you would not flood lower Manhattan...

COSTELLO: Well could you...

SCHUMER: (UNINTELLIGIBLE)...

COSTELLO: Senator, could you compare these men to the Miami seven?

SCHUMER: Well, they probably were a little more sophisticated than that. I mean I don't think they had names like Prince Manna, Brother Naz (ph) and Prince whatever he was. But I don't think that, as, again, I don't think that these were at the top of the list in terms of ability, in terms of getting things done. COSTELLO: OK, so there...

SCHUMER: Having said that...

COSTELLO: Senator, there's a man in custody in Beirut then.

What should the United States do about him?

SCHUMER: Well, obviously, you know, I mean you don't want to get into details what they should do. They should find out everything he knows, who he's connected to, etc. You can't -- you have to take every one of these plots seriously. But I just, you know, you don't want to say every time they caught someone, oh, within a week, had they not caught them, something terrible would have happened.

I think it shows that our intelligence is getting better and better. We are able to find these things earlier. We are able to nip them in the bud. This is a good one, in a certain sense.

COSTELLO: It still makes people a little nervous, especially in New York City...

SCHUMER: Sure. And let me tell you, I live in New York.

COSTELLO: ... to hear of such a plot, whether it's...

SCHUMER: I live in New York City. I take the subways. My daughter takes it to school every day. Obviously, you can't be too careful. And I don't mean to belittle it. I just don't want to put it at the same level as some of the others that have been found. But you take every one of these seriously. You track down every lead then you -- should you apprehend people who might be involved, you follow the leads that they give you.

And as I said, our intelligence has made significant strides since 9/11.

COSTELLO: Are our tunnels and bridges protected enough?

SCHUMER: OK, well, that leads to a second point. The one thing other than the fact that intelligence got this early on that I think is important is this once again shows that Homeland Security and Secretary Chertoff's view that New York shouldn't get funding and shouldn't get funding for personnel makes no sense whatsoever. The only way you would have stopped a plot like this is added personnel.

And the fact that New York's monies and Washington monies were cut while places like Dillingham, Alaska and Modoc County, California got increases in terrorist funds shows that they'd better go back and re-examine. How many plots aimed at New York do you have to have before Secretary Chertoff says New York should get a greater share of the money. And this idea that it should -- there should be a preference for mechanical devices and detection devices, important as they are, over manpower, doesn't make any sense at all.

COSTELLO: Senator Charles Schumer, joining us live by phone this morning.

Thanks.

O'BRIEN: In London today, they stopped to remember the bloodiest day that the city has endured since the German bombardment in World War II. A year after the suicide bombings in the transit system killing 52, the city is back and bustling, vibrant as ever.

But there is real concern about further attacks while there's a sense inside the Islamic community that they are unnecessarily under siege.

Terrorism expert Sajjan Gohel with the Asian-Pacific Foundation joining us in London this morning from King's Cross Station, where the suicide bombers began their terrible trek a year ago.

Sajjan, good to have you with us.

This comes, this anniversary comes the day after a tape is released and words on the tape from the suicide bombers, it having the imprimatur, the logo of al Qaeda on it.

Do you have reason to believe that they were acting directly on orders from bin Laden and his ilk?

SAJJAN GOHEL, TERRORISM EXPERT, ASIAN-PACIFIC FOUNDATION: Well, Miles, this tape that came out yesterday featured one of the suicide bombers, Shazad Tanweer. And on it, it also showed Ayman el-Zawahiri, the deputy of al Qaeda.

Now, this is the strongest indication that we've had so far that al Qaeda actually was behind the recruitment, the radicalization and the execution of the 7/7 attacks.

Certainly, we don't have any direct proof or intelligence to suggest that they planned it. But the assumption now is that they did have a role in this. And it is worrying and it's also significant that if that is the case, this is the first major attack since 9/11 that al Qaeda central, the organization, actually participated in. And I think they're trying to send out a message on, yesterday, to show that they will be planning more attacks at some time in the future.

O'BRIEN: Sajjan, at this point, though, does al Qaeda matter more as an organization or as a philosophy that people latch onto and essentially copycat on their own?

GOHEL: That's a very important point. We know that al Qaeda the organization has altered from being a structured group -- it's now become an ideology, a movement. The ideas and doctrines that Osama bin Laden preaches, that we see on television or the Internet, are attracted to the different terrorist groups throughout the world.

You don't need bin Laden to give the green light for an attack. There are groups throughout the world with their own leadership, their own financing, their own cell structure. But they're bonded by the ideas that bin Laden preaches. And that's what's so dangerous about transnational terrorism is that it's proliferated. It's no longer confined or defined in one part of the world, as we see today.

O'BRIEN: I've got to tell you, it's almost haunting hearing those sirens a year after the attack. I know it's not just probably on the -- more on the order of routine. But nonetheless, let me ask you this, Sajjan.

In the wake of this, authorities in London have been very, some would say, too harsh on the Islamic community. June 9th, there was an arrest that really kind of crystallized all of this. Two brothers who were rounded up. It turns out they were innocent. It caused a series of protests. One of the protesters recently, at a protest in the wake of that, said this: "When you start to violate the sanctity of Muslims in their homes and handle their mothers and fathers, then there is going to be some kind of backlash."

Is there a backlash in the community? Are the authorities, in a sense, creating more recruits?

GOHEL: Well, I think we have to look at the factor, Miles, that before 7/7 and after the attacks, there have been a number of major plots that have been foiled by the authorities, plots that could have been even more devastating than the July 7th attacks themselves. And the authorities are under a very difficult scenario, that if they have intelligence, they have to act on it. Sometimes it's not always credible and sometimes they make mistakes. They're also normal.

But we need to remember, that for the terrorists, they will want to strike at a time of their choosing. They will give no warning, no indication. You're dealing with an invisible enemy, people that are submerged into the civilian fabric of society, that can't be identified by uniform and will appear when is convenient.

So the authorities are always playing a game of catch-up. They're trying to stay a step ahead of the terrorists. And certainly we do know that what happened recently with the arrests in East London, there have been those that have been trying to exploit what happened. We also know that al Qaeda itself mentioned it in the statement yesterday. One of the recruits for al Qaeda, Adam Gadahn, an American convert, was heard in the unedited transcript of the tape yesterday, talking about it. And you'll find that groups like al Qaeda will want to exploit mistakes that take place.

But we also have to remember that the Muslim community is the one that is being targeted by the terrorists themselves, that are demonizing its own religion.

O'BRIEN: Sajjan, on a quick personal note, in the year since this attack, when you use the tube, do you look at people differently? Are you more suspicious? Do people look at you differently?

GOHEL: Well, I think after 7/7 suspicions certainly were raised. People were looking around. They weren't sure who to trust. If you saw someone carrying a big rucksack on the London tube, that would somehow attract more attention. But, look, London is a multicultural, cosmopolitan city. We've had to deal with terrorism in the past with the IRA. It's not something new, but it was nevertheless disturbing what transpired and the city is overcoming the difficulties that took place. The city thrives on its openness and on the tolerance that exists and it's important to remember that.

And I don't feel that things have changed substantially. But we do always have to remember that the specter of terrorism is there and that the terrorists may want to try new attacks in the future. We always have to be aware of that.

O'BRIEN: Terror expert Sajjan Gohel.

Thanks for being with us this morning.

And stay tuned to CNN day and night for the most reliable news about your security.

GOHEL: A pleasure.

O'BRIEN: Carol.

COSTELLO: Coming up, a look at Larry King's exclusive interview with President Bush and the first lady, Laura Bush. President Bush talks about the defining issue of his presidency and gets candid about turning 60.

Plus...

(BEGIN VIDEO CLIP)

ERIC GALA, FATHER OF BULLYING VICTIM: I was just outraged. I couldn't believe what I was seeing. I couldn't believe the size difference.

(END VIDEO CLIP)

COSTELLO: Parents fight back against school bullies. Their plan? A law against bullying. We'll explain just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Ah, summer break. A worry-free time of year for kids.

But if your child has been the victim of a bully, he may be living in fear even now.

Well, some parents have had enough and they are fighting back.

CNN's Jason Carroll joins us now to talk about how.

JASON CARROLL, CNN CORRESPONDENT: Yes, and I'm sure there are a lot of parents out there who can relate to this, you know, in terms of how kids deal with things that happen at school. Your son or daughter is being bullied at school and the school doesn't have a proper plan of action.

Now, parents say there should be a law to guide school officials.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): School bullies -- chances are you may have known one in class or, worse, you were on the receiving end of a bully's wrath, like 10-year-old Chester Gala from New Baltimore, Michigan.

CHESTER GALA: I think they should all go to jail.

GALA: When I viewed the tape, I was just -- I was just outraged. I couldn't believe what I was seeing. I couldn't believe the size difference of -- the cowardice act of closed fist punching someone so much smaller.

CARROLL: The school temporarily suspended the boy, but Gala's father says it wasn't punishment enough. That's because he believes the results of bullying can be much worse than the bruises and humiliation his son endured.

In extreme cases, like the one involving Matt Epling, it can be tragic. Almost four years ago, Epling was a popular middle school student, until his last day of school, when three high school students decided he was their next target. They caught Matt near his home in East Lansing, Michigan, forced him to the ground, smeared him with eggs and gave him a message.

KEVIN EPLING, FATHER OF BULLYING VICTIM: I'm going to make your next year of high school hell and I'm going to take everything away from you. That emotionally is devastating, you know, to, probably, to a 14-year-old.

CARROLL: The Eplings, with Matt's support, decided to press charges. But before they did, Matt made a fatal decision. He hanged himself at home. There was no note.

EPLING: Matt was not someone who had any indicators, you know, for suicide. Everything leads back to that day where he was assaulted.

CARROLL (on camera): The Eplings say before Matt's suicide, few in the school system took what happened to him seriously. The school superintendent says we didn't talk much about anti-bullying before Matt's death. His parents have brought a sensitivity to the school system.

(voice-over): Angered by those in the system, the Eplings, along with Chester Gala's parents, are now pushing for anti-bullying legislation in Michigan.

EPLING: What the actual bill is going to do, it is going to say here's what we would like you to have in your policy and here are the guidelines that you should incorporate.

CARROLL: The bill calls on districts to adopt a policy prohibiting harassment or bullying, a procedure for reporting and for a prompt investigation. The Eplings say Michigan can do better and their son Matt deserves better.

EPLING: We're doing all this for you, Matt.

(END VIDEOTAPE)

CARROLL: The legislation is currently caught up in committee in Michigan, but the Eplings say that they will continue pushing until some sort of law is passed.

COSTELLO: Now, see, you would think after Columbine that this would not be discussed like this anymore, that there would be some solutions there and parents wouldn't have to resort to trying to get a law passed.

CARROLL: You would think. And, you know, these parents would agree with you. And I think that's part of the reason why they're going to continue pushing until they say something is passed. Something, you know, some sort of guide for schools to follow.

COSTELLO: What do you have for us tomorrow?

CARROLL: And tonight, actually, it's going to be -- and this is really interesting. We speak to some of the first North Korean refugees recognized by the State Department. They talk about of a life of starvation and torture. It's a fascinating -- it's a heartbreaking discussion. That's going to be tonight on "PAULA ZAHN NOW" at 8:00.

COSTELLO: OK, we'll be watching. Thank you very much, Jason.

O'BRIEN: Coming up, just when we thought or when he thought he was out, they pulled him back in. You'll meet a national guardsman who thought his service was over, but he was sent off to Iraq to fight, all because of a clerical error. He'll explain the big mix-up, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Word this morning of a frightening terror plot targeting the tunnels that connect Manhattan, New Jersey, Queens and Brooklyn. First reported in the "New York Daily News," now confirmed by several sources here at CNN. Members of Congress just got an intelligence briefing on this case.

The chairman of the House Homeland Security Committee is New York Congressman Peter King. He joins us on the line right now.

Congressman King, what did they tell you at the briefing?

REP. PETER KING (R), NEW YORK: Good morning, Miles. Actually, I'd been following this for the last eight or nine months. This has been an ongoing investigation. And what I can tell you that the story in today's "New York Daily News" is fairly close to what, you know, the real story is. I'm not confirming it in all its details, but I can tell you that there certainly are, and have been, serious plots against New York City Transit System. I can also report to you that the federal authorities or the NYPD have been monitoring this very, very carefully and very closely since sometime last year. And so, the residents of New York can be assured on that.

O'BRIEN: Let me ask you this. We talked a little while ago with our Pat D'Amuro, our security analyst here. And it is his sense that the authorities were not ready to go public on this, and that it might, in fact, hinder the investigation that this story has come to light first in the "Daily News." What are your thoughts on that?

KING: I agree with that. I mean, I've been away now for a number of days, and this story was about to break. And I wish it had been held. I wish they had not gone forward at this time. You know, these are ongoing investigations. I know that the arrest in Beirut was significant, but it would have been better, would have been preferable, if this had not been announced.

As I said, this is -- this, at least that I'm aware of, for last nine months or so, nine or ten months, this investigation has been ongoing. It' been monitored very carefully, both at the federal level and at the city level. NYPD has put an extraordinary amount of effort into this. They have been very concerned about it.

And I think it would have been preferable for this to have to have been allowed to play out significantly longer, which is why I have not commented on it. I've received, you know, several phone calls over the last several of days. And until now that it's out, I'm not saying -- I've not said anything.

And what I'm saying today is that there is a lot to what was in today's "Daily News" story. But that's really all I can confirm about it. And I've also confirmed that there are, again, significant ongoing plots against the city of New York's mass transit system, which makes it -- and again, to give a little bit of background, this was all in my mind the last month when I was arguing so strenuously against the cuts in the New York City in homeland security. Because I'm aware of plots such as this.

O'BRIEN: Did this coming public, do you believe this hindered the investigation? Will it make it difficult to bring people to justice?

KING: Well, I can't say that for sure, but to me, it's always more prudent to wait and let the investigation run its full course, you know, before going public with it. So I wish they had not -- it may hinder the investigation. It's certainly not going to help it.

O'BRIEN: Do you know if the editors of the "Daily News" were asked not to run this story?

KING: I really don't know what -- you know, what the "Daily News" was told or was not told on this, no.

O'BRIEN: All right, give us a general sense -- your general sense of just how safe New York's infrastructure is right now.

KING: New York's -- the city's infrastructure is as safe as it can be, primarily because of the work of the NYPD. But it's not going to remain as safe as it should be if they don't get more funding from the federal government for projects such as this. This is a very draining, draining on the New York City treasury. Without going into details, extraordinary amount of money has been spent by the NYPD involving this particular plot.

O'BRIEN: Is it -- is it your sense that this is just the beginning of this story, or is this the end of the it?

KING: You know, that would be inappropriate for me to say. I would just say it's ongoing and we'll leave it at that. And again, as I say, I've been aware of it for almost nine months in very excruciating detail. And it's -- it's not as simple as some people may say it is.

O'BRIEN: Representative Peter King, who is chairman of the House Homeland Security Committee, thank you very much for your time.

KING: Thank you.

O'BRIEN: Stay tuned to CNN day and night for the most reliable news about your security -- Carol.

COSTELLO: As President Bush celebrated the 60th birthday, he invited CNN's Larry King to the White House for an exclusive interview. Larry sat down with the president and the first lady in the historic blue room to talk about his presidency and the many challenges past, present and future.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I look at life as a series of opportunities to make this world a better place.

COSTELLO (voice-over): President George W. Bush on dealing with the myriad of vital issues at home and abroad. He told Larry King during a wide-ranging interview that North Korea's missile tests present an opportunity to apply global pressure on Pyongyang.

G. BUSH: I'm confident the best way to solve the problem is to have the Chinese and South Koreans and the Japanese and Russians sitting side-by-side with us, saying to Kim Jong-Il it's not in your interest to isolate yourself from the world. It's not in your interest to keep defying the demands, reasonable demands, of the world. And there's a better way for you to move forward.

COSTELLO: On Iraq, perhaps the defining issue of his presidency, Mr. Bush said he'd make the decision to invade again.

G. BUSH: We removed a tyrant who was a weapon -- was an enemy of the United States, who harbored terrorists and who had the capacity, at the very minimum, to make weapons of mass destruction. And he was a true threat. And yes, I would have done the same thing. COSTELLO: The president and first lady addressed his weak approval ratings, saying they're aware, but not affected.

G. BUSH: The president that chases the opinion poll is the president that will have failed policy, in my judgment. I like to tell people I would rather be -- when history looks back, I would rather be judged as solving problems and being correct, rather than being popular.

LAURA BUSH, FIRST LADY OF THE UNITED STATES: We've been in politics a very long time. We've seen somebody else we loved a lot in this job, George's dad, and we know what it's like and we know what to expect.

COSTELLO: And the president expects the GOP to keep control of Congress in the midterm elections.

G. BUSH: You know why? Because we're right on winning this war on terror and we've got a good economic record. People are working under the leadership of this administration and the Congress.

COSTELLO: As for turning 60, the president said he's surprised by how good he feels.

G. BUSH: I can remember when I was a kid looking at people 60 saying, man, there goes an ancient person, but I feel great.

COSTELLO: But still, America's commander in chief is consumed by the thought of eliminating the terrorist threat.

G. BUSH: Every day I think about this.

LARRY KING, CNN HOST: Of getting...

G. BUSH: Well, everyday I think about al Qaeda. Every day I think about al Qaeda. Every day I think about protecting this country, I mean every day. It is the calling of our time to win this war on terror.

(END VIDEOTAPE)

COSTELLO: And of course you can catch "LARRY KING LIVE" tonight and every weeknight at 9:00 p.m. Eastern right here on CNN. And CNN will have live coverage of President Bush's news conference later this morning from Chicago's Museum of Science and Industry. I believe that occurs at 10:50 a.m. Eastern.

O'BRIEN: Stay tuned.

Still to come, an Ohio man to fight in Iraq -- by mistake. He'll explain the clerical error that could have cost him his life.

COSTELLO: And later, "Pirates of the Caribbean" the sequel hits the big screen today. We'll tell you if it lives up to all of the hype and you should spend your hard-earned money to see it. That's just ahead on AMERICAN MORNING. (COMMERCIAL BREAK)

O'BRIEN: A former Ohio National Guardsman who had done the time and has no further obligation to serve got some surprising orders to report for duty in Iraq. He protested. But ultimately gave in, followed orders, packed his duffel for his yearlong tour of duty trying to search out roadside bombs. Dangerous duty, indeed. Certainly more dangerous than his job at a Ford plant in Ohio.

James Dillinger joining us now from Cincinnati with more on this.

James, you protested, and ultimately you just packed up and went. You're a good military man, aren't you?

JAMES DILLINGER, MISTAKENLY DEPLOYED TO IRAQ: Well, I always felt I was.

O'BRIEN: When you got a clerical error, though, most people would say, I refuse to go, I've got a contract here. Why did you ultimately go, nevertheless?

DILLINGER: Well, I -- when I received the orders in 2004, May of 2004, I suspected that something wasn't right, that there might have been an error. And I did subsequently follow up with several phone calls, e-mails and even some letters to my representatives in the Congress and the Senate. All told, though, it ended up with a final call with the National Guard Bureau along the line that I was informed that due to Stop-Loss was the reason for my deployment and my orders. And I accepted that at that time from spending so many years in the military.

O'BRIEN: So Stop-Loss, which is the program to try to keep people from leaving duty at this time of great need, didn't really apply to you, though, did it?

DILLINGER: No. It didn't. And, you know, I take a degree of blame for not realizing that at the time. I accepted that on the word of the representative from the Army. And, but it did not apply due to the fact that technically my release date was April of 1999, and that was prior to the Stop-Loss law.

O'BRIEN: So you went over there and served your time. Dangerous duty, of course. Were you still trying to get things straightened out while you were there, and what point did the military finally realize they made a big mistake? While

DILLINGER: While I was over there, I really kind of dropped the matter for the time that I was over there. Because once you're over there, it's such an undertaking to even get back, that I just decided that my -- the most important thing for me in the members of my company I was serving with was to concentrate my efforts on the mission at the time.

So I did complete that. And when I got home, and I was out processing at Fort Benning, that's when it was brought to light that I still had an obligation, according to the military, that would take me out to 2010 in the I.R.

O'BRIEN: And so then you finally got it straightened out. The military has a statement here. I want to share it with people, see what you think about this. This is from Human Resources Command. "We honor Sergeant Dillinger's service to our nation, particularly in light of the error of his mobilization, and we understand his concerns."

They understand your concerns but, you have issues that you want to get straightened out, don't you? Tell us about that.

DILLINGER: Yes, I do. I'm trying to get some assistance in insuring that I secure my retirement, referred to as your 20-year letter through the military, and I feel at this point that I'm deserving of it based on the fact that I was held in the additional years on the records and in the I.R., which also subsequently resulted in my deployment to Iraq.

O'BRIEN: All right. So this is the classic Kurt Vonnegut-style catch 22 here. You're not getting credit for the years you served that were outside of your contract, even though it was their error.

DILLINGER: No, I'm not getting what they call credit for good years for those years, no. And that's what I need to get me the three additional years and get me a total number of points for -- to secure my retirement.

O'BRIEN: All right. Well, you keep us posted. I hope you have some good luck with that one, better luck than the first clerical error anyhow.

DILLINGER: Thank you.

O'BRIEN: James Dillinger. And by the way, we appreciate your service. We appreciate you going over there, even though you knew it was wrong. Thank you very much.

DILLINGER: Thank you.

O'BRIEN: Up next, Andy "Minding Your Business." Andy, what do you got for us?

ANDY SERWER, "FORTUNE" MAGAZINE: Miles, dozens of new words in the latest dictionary and some of them are from the world of business. And one comes from Lindsay Lohan. We'll tell you about that, coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Wild horses couldn't have kept Jerry Thompson from pursuing a second career. CNN's Valerie Morris has more on a rare breed in this edition of "Life After Work."

(BEGIN VIDEOTAPE)

VALERIE MORRIS, CNN CORRESPONDENT (voice-over): Retirement has been quite a change for 58-year-old Jerry Thompson. After selling his 16-employee construction company, he now breeds and trains rare Kiger mustangs in Estacada, Oregon.

JERRY THOMPSON, HORSE TRAINER AND BREEDER: I got interested in horses when my father retired. He bought some thoroughbred race horses, and so they kind of got seated in the inside of my soul and I just always -- never could let go of it.

UNIDENTIFIED FEMALE: Yes, yes! Go, go, go!

MORRIS: Thompson readies Kiger mustangs for endurance races and shows. He bought his first one in 1998, and now owns about 30. The allure, he says, is their rich ancestry.

THOMPSON: It's an unbelievable romance story. At one time, the genes of these horses in Spain were considered more valuable than gold. They're just a rare horse that managed to somehow survive 400 years in the wilderness. It is a privilege to me and to other people that I know that are doing it to be able to help this horse reestablish itself as an outstanding breed that can compete in a number of venues. When I first retired, I didn't anticipate that I would have such a passion for life again like I have now.

MORRIS: Valerie Morris, CNN, New York.

(END VIDEOTAPE)

O'BRIEN: Looks like a very fine retirement, indeed.

(BUSINESS HEADLINES)

O'BRIEN: All the day's top stories after a break. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Extra security at the Holland Tunnel this morning. Reports surfacing of a plot to attack several New York City tunnels.

Big Ben tolling for the victims of London's terror bombings. People there remembering those victims on the one-year anniversary of the attacks.

COSTELLO: Dealing with North Korea. The U.S. top negotiator in Asia is in Asia this morning for crucial talks on what to do about those missile tests.

And we'll hear from a Texas family struggling to understand the brutal beating of their son. A CNN exclusive.

That's ahead on AMERICAN MORNING.

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