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CNN LIVE SATURDAY

Report on U.S. Missile Defense; A Look Inside North Korea; Space Shuttle Astronauts Perform Six Hour Space Walk; Stress May Have Caused Ken Lay's Heart Attack

Aired July 8, 2006 - 17:00   ET

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


CAROL LIN, CNN ANCHOR: Just days after North Korea's missile tests put the world on notice, a U.S. warship arrives in the region. We're going to tell you why.
Plus, a look inside the reclusive communist state.

From Washington to Beijing, we have got reporters following every development.

Hello and welcome to CNN LIVE SATURDAY.

I'm Carol Lin.

And here's what's happening right now in the news.

A walk in space for two shuttle astronauts. Mike Fossum and Piers Sellers did some cable work outside the International Space Station and they also tested a long boom to see if it could be used in emergency repairs.

We're going to have a live report from CNN's Miles O'Brien.

Three U.S. Marines were killed today in Iraq. The military says the Marines died in combat in Anbar Province.

And a mother and two children die in a blast in Gaza and Israel now says it is investigating claims that an Israeli air strike killed them.

The Coast Guard says a Cuban woman died of injuries suffered in a high speed chase at sea. The woman was one of 31 immigrants in a boat that tried to ram a Coast Guard vessel, trying to race it to Florida.

And a 4-year-old who survived a harrowing fall is in serious condition in Albany, New York. Police say the boy plunged 11 stories and then bounced off a flexible metal awning, which probably saved his life.

North Korean missile tension still thick after this week's test launches. Washington is working to defuse it on two fronts, one diplomatically and the other not so much. An American envoy is in Seoul, urging the North back to the table. And the Pentagon is boosting its profile in the Pacific.

Military leaders caution against reading between the lines. (BEGIN VIDEO TAPE)

LIN (voice-over): As U.S. Navy vessels go, few things floating are more high tech, capable of detecting, tracking and taking out airplanes, submarines, and, the word of the day, missiles, more than 100 at a time hundreds of miles away.

The USS Mustin, sporting the state-of-the-art Aegis combat system, ported today in Tokyo Bay.

MAJ. GEN. THOMAS WILKERSON, U.S. MARINE CORPS (RET.): The capability to stop a missile from entering home air space is something that's very desirable to have. And, in fact, Aegis-equipped destroyers of the latest class, Flight Two and beyond, are more than capable of handling any of the missiles that North Korea attempted to fire, whether they went well or not.

LIN: The Navy says it's routine, a deployment they announced months ago.

CMDR. EDWARD CASHMAN, USS MUSTIN: We are aware of the situation in North Korea and the events of the past several weeks. We don't have any particular mission right now. We're tasked to come and turn over, as part of the normal rotation of forces.

LIN: What they didn't announce is that steaming eastward from the Persian Gulf is what may be the most formidable military force on Earth -- a Naval aircraft carrier group. When the USS Enterprise arrives in the Pacific, half of the Navy's carrier fleet will be there, a potent show of military might, impossible for any missile capable and potentially unstable nation to ignore.

The Navy doesn't even mention North Korea or long-range missile tests. They say it's training and the timing is pure coincidence.

(END VIDEO TAPE)

LIN: So let's turn to the White House right now.

Standing by live is CNN's Elaine Quijano -- elaine, why does the Bush administration reject direct talks with North Korea?

ELAINE QUIJANO, CNN CORRESPONDENT: Well, Carol, President Bush says that North Korea has not stuck to a past agreement made in 1994 during the Clinton administration, when U.S. officials then did sit down for direct talks with North Korea. The president believes that based on that experience, the United States can be more effective by taking a multilateral approach with North Korea. That approach, the White House believes, will make it more difficult for North Korea, especially the leader, Kim Jong Il, to accuse the U.S. of blocking an agreement.

Now, this weekend, U.S. envoy Christopher Hill is in the region to try to jump start the stalled six nation talks. Today in Seoul, South Korea, Hill said Washington does back a proposal by China for the U.S. to talk with North Korea informally, but only if North Korea returns to the six party discussions, talks that include the U.S. South Korea, Russia, China and Japan.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, ASSISTANT SECRETARY OF STATE: It gives me no pleasure to think about 20 million citizens in the DPRK, people who don't have enough to eat, who don't have enough clothing, who don't have enough electricity. And meanwhile they have a regime firing off missiles. So, you know, they need to get serious and get back to the talks.

(END VIDEO CLIP)

QUIJANO: As for what's next, diplomats at the United Nations have agreed to delay a vote on a draft resolution by Japan, one that includes sanctions. Two key members, though, with veto power, China and Russia, have opposed that idea. Instead, they want a presidential Security Council statement.

The bottom line, Carol, that would mean less of an impact and it would also not contain any reference at all to sanctions -- Carol.

LIN: All right, so then China, Russia opposing sanctions on North Korea.

Is there likely to be any practical outcome in the U.N. Security Council then?

QUIJANO: Well, that remains to be seen. Certainly the U.S. envoy is working to make something happen. But China and Russia contend that by going the route of sanctions, that would only serve to delay North Korea's return to the six party talks. They, in effect, think that it would make the situation worse.

In addition, some analysts believe that China and Russia, while unhappy with North Korea's moves, really don't feel necessarily endangered by North Korea's actions. And finally, of course, China, which is not only North Korea's closest ally, it is also a neighboring country for North Korea, and certainly the Chinese government does not want to see the North Korean regime destabilized and the possibility of millions of refugees pouring over the border -- Carol.

LIN: Elaine, thank you so much.

Now, CNN is going to be talking with U.S. envoy Christopher Hill this weekend and you can hear portions of that one-on-one interview tomorrow morning at 7:00 a.m. Eastern.

All right, so what would happen if North Korea's missiles actually reached the United States?

Fort Greely, Alaska is on the front line of U.S. defense.

And CNN's Ted Rowlands reports from there.

(BEGIN VIDEO TAPE) TED ROWLANDS, CNN CORRESPONDENT: At one point, this base was actually going to be closed. It's in the middle of the State of Alaska. In fact, right now we're closer to Russia than we are to the continental United States.

But because of the missile defense system housed here now, many say that Fort Greely is as important as any U.S. military installation around the world.

(voice-over): Fort Greely, Alaska is called the first line in America's missile defense and this is the reason why. It is one of nine ground-based interceptor missiles here that the U.S. military says are ready for launch if North Korea or anyone else sends a long- range missile at the United States.

LT. GEN. RONALD KADISH, MISSILE DEFENSE AGENCY DIRECTOR: Our mission in the Missile Defense Agency is to defend the United States -- our deployed forces, our allies and friends -- against all ranges of missiles.

ROWLANDS: Since 9/11, the U.S. has been building up a missile defense system. The first 55-foot interceptor was loaded into a silo at Fort Greely two years ago. In addition to the nine in place here, there are two interceptors at Vandenberg Air Force Base in California. There are plans, according to the military, for dozens more to be added at Fort Greely.

While nobody knows if the missile defense system would actually work, at this point the military will still look to use it in an emergency. Only 10 ground-based interceptors have ever been tested and only five of those actually hit the target. Critics argue that in a real life scenario, success would be more difficult.

(on camera): According to someone on base, at the time that North Korea started launching missiles, there was an actual alert here at Fort Greely, telling people to prepare for a potential launch. And, at this point, according to the military, the base is still at a heightened alert.

Ted Rowlands, CNN, Fort Greely, Alaska.

(END VIDEO TAPE)

LIN: Later this hour, I'll be interviewing Phillip Coyle, who worked for the secretary of defense and can talk about if or when the United States considers a military strike against North Korea.

He's going to join us live in about 20 minutes.

And later tonight, get the best of CNN -- "UNDERCOVER IN THE SECRET STATE." You can get a firsthand look at life inside Kim Jong Il's North Korea. Don't miss its special airing tonight at 8:00 p.m. Eastern, right here on CNN.

German federal authorities have arrested a German of Moroccan descent as a suspected terrorist. Authorities there say the man is a suspected member of al Qaeda. They say he had contact with a man who had close ties with three of the 9/11 hijackers.

And three suspects are in custody. Five more are still at large in an alleged terror plot against New York City's transportation system. Law enforcement officials say they foiled the plot by Islamic extremists to bomb tunnels to lower Manhattan. The FBI says an attack was planned for October or November. Authorities say the plot involved putting suicide bombers on trains.

Now, since 9/11, the U.S. has poured billions into increasing security of air travel. And government and experts say ground-based transportation is much harder to protect.

CNN's Mary Snow has more.

(BEGIN VIDEO TAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Tunnels leading into New York City have long been considered terror targets. The PATH commuter train system, which the FBI says was the target of this latest plot, carries hundreds of thousands of commuters under the Hudson River from New Jersey to Manhattan every day.

SAMUEL PLUMERI, PORT AUTHORITY POLICE DEPARTMENT: I think that any -- any explosion, any blast in any tunnel, regardless of its size, would cause an issue, obviously, and a disruption. To get into details as to what that means, in terms size of explosives, etcetera, I'm not prepared to do that here today.

SNOW: Since the early 1990s, New York officials say nearly 20 attacks or attempted attacks have been made against the city. While Friday, the FBI specifically mentioned the transit tunnel, officials also say that a number of those threats over the years have targeted New York City's other river crossings, including a 1993 plot involving the Holland Tunnel.

Experts say while bombs could severely damage tunnel interiors and ventilation systems, it's doubtful the force of a conventional explosion would break through the layers of bedrock into the river.

LEE ABRAMSON, TUNNEL ENGINEER: They would very unlikely cause a complete collapse of the tunnel and water rushing in.

SNOW: Engineers say the PATH tubes, much like the Holland Tunnel, are built under the riverbed, protected by bedrock in most parts.

Experts say that a "Daily News" report that this latest plot to intentionally flood Lower Manhattan's Financial District would be unlikely, because New York is above sea level.

Security analysts say terrorists don't only have an objective of physical damage in mind, they say these types of plots are aimed at generating psychological panic and chaos, as well.

(on camera): But many New York commuters say they can't afford to give into fear, knowing that they may be targets has become a part of their everyday routine.

Mary Snow, CNN, New York.

(END VIDEO TAPE)

LIN: Well, there are reports of a prisoner escape from a jail in Saudi Arabia. The escapees are described as six Saudi nationals and one Yemeni. They broke out of a minimum security facility in Riyadh just a few days ago. Now, all were suspected of aiding terrorists, but none had gone to trial.

CNN is committed to providing the most reliable coverage of the news that affects your security. So stay tuned to CNN for the latest information day and night.

He was born and raised in California, and now a 29-year-old man is speaking out on behalf of al Qaeda.

What can you learn from the late Ken Lay? Coming up in 40 minutes, how stress can kill you.

And it's a weekend repair job that gives you a view of Asia from 220 miles away. That story in just under three minutes.

(COMMERCIAL BREAK)

LIN: Working in the void of space, two of Discovery's astronauts made the first of three of this mission's space walks today, repairing a part of the International Space Station.

Miles O'Brien reports.

(BEGIN VIDEO TAPE)

UNIDENTIFIED ASTRONAUT: To watch the sunrise. (UNINTELLIGIBLE). It's beautiful.

MILES O'BRIEN, CNN ANCHOR (voice-over): It was an arm's length operation that may bring a new dawn for repairing a shuttle in space. Space walks Piers Sellers and Mike Fossum latched to the end of a robot arm twice as long as normally carried on an orbiter, seeing if it is stable enough to serve as a work platform that could one day save the day.

Fossum and Sellers in high spirits as they popped out and punched in for a better than six hour work shift in the void, taking time to savor their surroundings.

UNIDENTIFIED ASTRONAUT: Take a second and look at the Earth to your left and I think you've got Ireland and England coming up there.

UNIDENTIFIED ASTRONAUT: To my left? Oh. (UNINTELLIGIBLE).

UNIDENTIFIED ASTRONAUT: Wow!

UNIDENTIFIED ASTRONAUT: Oh my goodness. It's a beautiful day in Ireland.

O'BRIEN: They raised the boom and got to work.

UNIDENTIFIED ASTRONAUT: I think we're ready for the big (UNINTELLIGIBLE).

O'BRIEN: Sellers and Fossum latched themselves into the foot restraint at the end of the six story movable mast and went through the motions of repairing an orbiter.

UNIDENTIFIED ASTRONAUT: Very steady, very smooth.

O'BRIEN: At times it seemed stable. At times, they were swaying in the void.

UNIDENTIFIED ASTRONAUT: There's a lot of motion. With that kind of action I think that that would probably be too much.

O'BRIEN: If the 100-foot arm works, it could give shuttle crews the ability to fix a damaged heat shield on the orbiter's under belly in places currently out of reach.

UNIDENTIFIED ASTRONAUT: It seemed like less motion on that one.

UNIDENTIFIED ASTRONAUT: Yes, it was.

O'BRIEN: And this crew may yet get the chance to test out the concept for real. Engineers have their eye on a narrow gap filler protruding between some heat shielding tiles near Discovery's tail. The loose gap fillers can create dangerous hot spots on a shuttle during the searing heat of re-entry.

Last year, space walk Steve Robinson successfully plucked two loose gap fillers near Discovery's nose.

(on camera): Mission managers have yet to determine if that protruding gap filler in the tail section of the orbiter will pose a threat to the crew when they return to Earth this time. If it does, the space walkers, Fossum and Sellers, might very well be called to emergency duty at the end of that long arm.

Miles O'Brien, CNN, New York.

(END VIDEO TAPE)

LIN: New video just into the CNN Center.

You are watching a high speed chase as the Coast Guard chased down a smugglers' boat. The smugglers coming out of Cuba with something like 31 Cuban immigrants trying to reach the coast of Florida. The Coast Guard gaining ground on them. Right now the Coast Guard is the darker colored boat there.

If you can believe it, that white boat was carrying 31 people. And when the Coast Guard finally boarded -- this was about four miles off the coast of Florida -- there was a woman there who died after this high speed chase. The Coast Guard officials are blaming it on the smugglers. They say the smugglers pack people in and treat the human beings on that boat like human cargo.

Other headlines now making news across America.

Atlantic City casinos reopened this morning at 7:00 and the gamblers were ready to roll. New Jersey's gaming halls were closed for three days while the state ironed out a budget disagreement.

And deep water in the desert. Check that out. Heavy thunderstorms brought a flash flood to Tucson yesterday. The roads were closed and about 1,000 homes and businesses lost power.

And lightning zaps a teen's iPod while he mows the lawn and it melted his earpiece and ruptured his eardrums and it blew a hole in his pants. Jason Bunch may be permanently deaf from that experience.

Next month marks the one year anniversary since Katrina slammed into New Orleans. And, yes, there are signs of progress and some repairs are evident. But the city is clearly not back on its feet.

Sean Callebs looks at the many challenges that remain.

His report first aired on CNN's "ANDERSON COOPER 360."

(BEGIN VIDEO TAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): Tourists are slowly coming back to New Orleans.

UNIDENTIFIED MALE: Oh, a blast. I'm having a wonderful time.

CALLEBS: The calendar says next month will mark the one year anniversary of Katrina. But much of the landscape looks like it was just hit. Entire communities, tens of thousands of homes, are still vacant. And the city has no real plan on how to get people back in them.

People like Jackie Adams, who's trying to live in a home still under repair

JACKIE ADAMS, NEW ORLEANS HOMEOWNER: I'm nervous because I feel like I'm living in a ghost town. I feel like, you know, I'm surrounded by houses that are empty, some that no neighbors have even come home to even gut their homes.

CALLEBS: Her home flooded, Adams lived in five different places this year while paying mortgage for a house that wasn't livable.

ADAMS: And then we discovered that there was some mold even up here behind the cabinets.

CALLEBS: She refuses to buy new furniture, still haunted by the storm and afraid that levees which prove porous will again fail.

ADAMS: I want to just have the, you know, bare minimum and live with that until I feel more comfortable that I'm going to be able to live without the fear of another flood. And then there's other days when you ask yourself, you know, why am I still here, what am I doing?

CALLEBS: The stress has sparked an increase in anxiety, and even depression and suicide.

DR. KEVIN JORDAN, TOURO HOSPITAL: We have a crisis of epidemic proportion.

CALLEBS: Touro, the one hospital open in Orleans Parish, is completely overwhelmed.

JORDAN: Folks will wait in hospitals for days, unfortunately, to be transferred to the far reaches of the state and, in many cases, to Texas or Mississippi, to get the inpatient psychiatric care that they need.

CALLEBS: Folks also wait for hours in Touro's emergency room. The overflow there is matched by an overflow in violent crime. Five killings in one weekend prompted the governor to call for hundreds of National Guard troops, some of them just back from Baghdad.

The French Quarter is still an intoxicating enticement. But much of the city still suffers Katrina's lingering effects.

ADAMS: Until you actually see it or you live through it, you really have no idea.

CALLEBS: And for many people here, no idea when New Orleans will feel like home again.

Sean Callebs, CNN, New Orleans.

(END VIDEO TAPE)

LIN: And you can watch "ANDERSON COOPER 360" weeknights at 10:00 p.m. Eastern right here on CNN.

There is more death and violence in Gaza City. Are the Palestinians reaching the breaking point? And are the Israelis?

And coming up in 15 minutes, a North Korean risks his life to show the world what it's like to fight for survival in a communist dictatorship.

(COMMERCIAL BREAK)

LIN: Ongoing hostilities in the Middle East. Israel has rejected the Palestinian prime minister's call for a cease-fire, instead, stepping up its offensive to secure the return of a kidnapped soldier. Six Palestinians were killed in violence in Gaza today.

Now, the shells and rockets falling in Gaza have proven too much for visiting Americans. They are boarding buses to get out of harm's way.

But as Ben Wedeman reports, the danger zone can shift daily.

(BEGIN VIDEO TAPE)

BEN WEDEMAN, CNN CORRESPONDENT (voice-over): A Palestinian gunman takes a shot at Israeli forces, while an Israeli attack helicopter hovers overhead, part of a brief incursion into Eastern Gaza.

Israeli forces have pulled back from the Northern Gaza town of Bait Lahia, which they controlled for three days in an attempt to stop Palestinian militants from firing rockets over the border.

Salah Hala Juli (ph) and his family of nine were pinned down for 48 hours in their home, hit by tank rounds and machine gun-fire. Pondering the mess, Salah says the fighting somehow must end. "Political leaders must understand this war is pointless," he tells me. "Generation after generation killing one another. There's no end to this."

His wife, Etidal (ph), has been radicalized. "Before, if we saw people trying to fire rockets from here, we tried to stop them," she says, "but now that our house is destroyed, we will support them."

Tour Bait Lahia after the Israeli pullback, the chief of United Nations operations in Gaza was shocked by what he saw.

JOHN GING, DIRECTOR, U.N. OPERATIONS, GAZA: I assessed the living conditions for people here in the Gaza Strip as now atrocious. We're hitting a new low. It's now a matter of survival. For most people living here, the concerns are security, food, water, electricity, sanitation. These are the very basics.

WEDEMAN: Under relentless military pressure, the Hamas-led government appealed for a halt to hostilities. But Israel replied it will cease operations only when 19-year-old Corporal Gilad Shalit, kidnapped two weeks ago, is released and the rocket attacks end. Israeli officials say they'll respond to quiet with quiet. But for now, Gaza is anything but quiet.

Ben Wedeman, CNN, Gaza.

(END VIDEO TAPE)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This backfired. This blew up in Kim Jong Il's face.

(END VIDEO CLIP)

LIN: His long-range missile tests failed.

So what does North Korea's leader do now?

Well, I'm going to speak with a former assistant to the secretary of defense, next. And coming up in 15 minutes, from typical California teen to wanted al Qaeda member. Hear what this man has to say about U.S. military efforts in Afghanistan.

(COMMERCIAL BREAK)

LIN: The Navy destroyer, the USS Mustin, has pulled into a Japanese port. The ship is equipped with one of the most advanced missile guidance systems. U.S. Naval officials say it's a preplanned deployment and not in response to North Korea's missile test firings this week.

Meanwhile, Assistant U.S. Secretary of State Christopher Hill is in Seoul, South Korea right now. He is trying to resuscitate the stalled six party nuclear talks with North Korea, with that nation's missile tests in the back drop.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, U.S. ASST. SECY. OF STATE: It gives me no pleasure to think about 20 million citizens in the DPRK, people who don't have enough to eat, who don't have enough clothing, who don't have enough electricity. And meanwhile they have a regime firing off missiles. So, you know, they need to get serious and get back to the talks.

(END VIDEO CLIP)

LIN: We'll have more on the North Korean situation straight ahead. But first, in Iraq, more deadly violence by insurgents. Three American soldiers were killed in combat today in Iraq's al Anbar province.

It was an out of this world success 200 miles above the earth. The planned six hour space walk for two Discovery astronauts went off today without a hitch.

Merriam Webster Dictionary says it's official, google, the popular computer search engine is now part of the English language as a verb. As if I'm going to google you.

North Korea's missiles may not have threatened the U.S. this time, but what about next time? Here's our national security correspondent David Ensor.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Not surprisingly, on North Korean television, the announcer said nothing about the missile firings and nothing about the failure of the Taepodong-2 long-range missile within 40 seconds of launch.

JOSEPH CIRINCIONE, CENTER FOR AMERICAN PROGRESS: This backfired. This blew up in Kim Jong-il's face.

ENSOR: Said one U.S. official, "It sounds like they are thinking about how to play this.

BUSH: One thing we are learned is that the rocket didn't stay up very long, it tumbled into the sea.

ENSOR: U.S. officials and analysts say it clearly did not go as planned.

CIRINCIONE: We had six scuds and one dud fired. All of them landed in the Sea of Japan, all of them thousands of miles away from America's shores.

ENSOR: U.S. intelligence and the Pentagon have been watching the Taepodong launch pad for weeks with spy satellites, aircraft and surveillance ships. Officials say North Korea has more Taepodongs, though their reliability is now in question.

DAVID KAY, FMR. U.N. WEAPONS INSPECTOR: The most interesting sidebar story is going to be what happens in Pyongyang. Who vouched for the reliability of this missile and what are the consequences now that it failed?

ENSOR: That will be hard for American intelligence to know. North Korea is an extraordinarily difficult society to penetrate. While South Korean intelligence likely has agents in the North, most of the assessment of Kim Jong-il's motives and intentions must be educated guesses and nothing more. On that basis, some analysts say the goal was less to test missiles, more to make a statement.

JIM WALSH, INTERNATIONAL SECURITY ANALYST, MIT: The fact that they shot off another, what, six other short-range missiles that had nothing to do with sort of verifying or collecting data shows that it really is about politics, less about security.

ENSOR: But other analysts and intelligence officers say don't assume Kim Jong-il's missile launches were foolish, from his point of view.

(on camera): The North Korean scientists will learn from the failure of the Taepodong and from the other tests. And Kim has reminded the world how serious the risks of war with North Korea would be and how limited the military options are.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

LIN: David Ensor is part of the team covering the world for "THE SITUATION ROOM." You can join Wolf Blitzer at 4:00 Eastern and prime time at 7:00.

All right. So how much of a threat really is North Korea? How seriously is the United States going to take North Korea's military program? Phillip Coyle is a former assistant secretary of defense and now a senior adviser to the Center for Defense Information. Phillip good to have you.

PHILLIP COYLE, FMR ASST. SEC. DEFENSE: Thank you.

LIN: In taking a look at these missile tests. I mean, do you really think that North Korea has the capability and the desire to attack U.S. cities or U.S. allies?

COYLE: They don't yet, but they've been trying now twice. They tried also back in 1998 to launch a long range missile. So far this is like a poker game where both sides are bluffing. North Korea doesn't have a missile that can reach the United States yet, and the United States doesn't have a missile defense that could shoot it down if it did.

LIN: So what do you think this shield that is being developed at Ft. Greely up in Alaska, what do you think this missile defense shield can actually do, if anything?

COYLE: Well, unfortunately, the missile defense system that is being developed in Alaska and California, has no demonstrated capability to defend the United States against an enemy attack under realistic operational conditions.

LIN: And as far as North Korea's capabilities? I mean, taking a look at the testing, some seven missiles that it had fired this week. How would you judge North Korea's capability to attack anyone at all?

COYLE: The short range missiles that they launched work. So they do have the capability to attack South Korea or Japan, which is why those two countries are so concerned.

LIN: You take a look at the U.S. warships now steaming towards Japan. What do you make of their presence in Japan? One characterized as routine exercise, but when you see the U.S.S. Enterprise leaving the Gulf region much sooner than expected?

COYLE: These are the kinds of military movements that bother North Korea. The buildup in Guam that U.S. forces are making is of concern to North Korea. When we bring new forces into the region, that's of concern to them. I see North Korea behaving like a cornered dog and when we build up our forces, it's like poking that cornered dog with a stick.

LIN: But what are those forces capable of doing once the USS Enterprise arrives, the USS Mustin, which is primarily a defensive ship.

COYLE: The Navy ships have good radar systems on them. So if North Korea launches a missile, they ought to be able to see it with those radar systems. Some of those ships also have missiles on them also to try to intercept North Korean missiles, but that system is still early in development.

LIN: Phillip Coyle, we'll see what happens. Thank you very much.

COYLE: My pleasure. LIN: A prosperous and great country. That's the state motto for Kim Jong-Il's North Korea. But videotape smuggled out of the country portrays something far more sinister. Here with a preview of tonight's CNN presents special "Undercover in the Secret State."

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Across from this hill in China is one of the border towns in North Korea. Loudspeakers pump propaganda through the streets. Somewhere over there Mr. Lee, the undercover cameraman, has new pictures to smuggle out. When he finally arrives, Mr. Lee brings his new footage to a secret location.

MR LEE, UNDERCOVER IN NORTH KOREA (through translator): It's been an incredibly tense time. How can I say this? There would have been no way if my work was discovered. They would have put me out of existence.

UNIDENTIFIED MALE: This is uncensored North Korea in its bleak, unadulterated form.

LEE: Using a camera is the most serious form of treason in North Korea. My wife came with me on the journey, and she kept telling me not to do it. That we should just get on with our lives.

UNIDENTIFIED MALE: He's captured people outside the station, huddled in the streets, waiting for a train to arrive. Fuel shortages mean the trains don't often run.

LEE: I was petrified but totally determined. The punishment they inflict on political offenders in North Korea is extremely severe. The system is just that they don't just punish the offender himself, his family and relatives are also punished. I placed my camera inside the bag and made a hole on the side to secretly film. But the thing is, that the light was being reflected on the camera lens. So I have to be very, very careful.

(END VIDEOTAPE)

LIN: Don't miss "Undercover in the Secret State," a CNN PRESENTS special airing tonight at 8:00 p.m Eastern right here on CNN.

Well the battle for the hearts and the minds of the next generation of Muslims up next. How extremists from a U.S. ally are advancing on that front line in the war on terror.

And in ten minutes, we're going to show you what happens to your heart under extreme stress.

(COMMERCIAL BREAK)

LIN: Have you seen this new chilling al Qaeda tape? Disturbing not only for its message but also for its messenger, an American, Adam Gadahn. A 29 year old Californian who left the U.S. to train at an al Qaeda camp in Afghanistan several years ago. Now, on the tape, Gadahn accuses the U.S. military of killing civilians. And he says it's understandable Muslims would want retribution.

(BEGIN VIDEO CLIP)

ADAM GADAHN, AMERICAN AL QAEDA: They've murdered thousands of Afghan civilians. I've seen it with my own eyes. My brothers have seen it. I've carried the victims in my arms. Women, children, toddlers, babies in their mother's wombs, you name it, they've probably bombed it.

(END VIDEO CLIP)

LIN: While the U.S. hasn't charged Gadahn with any crime, he is wanted by the FBI after making threats in this latest tape and in an earlier al Qaeda tape where he appeared masked.

Radical Islamic views are also being voiced in Britain. An extremist group in London is denouncing the west and expressing sympathy for al Qaeda. Reporting from London, CNN's senior international correspondent Nic Robertson.

(BEGIN VIDEOTAPE)

(MUSIC)

UNIDENTIFIED MALE: The enemy is (INAUDIBLE). It's called Satan, and he's in Falluja.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: In a darkened room in Walthamstow, north London, young Muslims gather to watch disturbing videos: Iraqis suffering in the ongoing war. They are members of an emerging radical group, the Sabia (ph) sect.

On the same multi-media presentation, they also listen to Osama bin Laden's messages and debate their own extreme views.

UNIDENTIFIED MALE: The people who are to blame for the 7th of July, are number one, the British government. No doubt about that. The British public are responsible and are to blame for what happened on the 7th of July because they voted for that government.

ROBERTSON: It is a year since the London bombings last July 7th. The bombers came from the north of England, were young and alienated from their parents, who had mostly emigrated to Britain decades earlier. If there is any doubt where this group's loyalties today, listen to the crowd cheer a litany of al Qaeda attacks.

UNIDENTIFIED MALE: The Twin Towers, they were bombed. Two billion came down, 3,000 people died. After that, they went for the Pentagon in New York.

(CHEERING)

ROBERTSON: And that with a CNN camera in the room. Their leaders espouse a vision that embraces nothing but their own radical view of Islam. UNIDENTIFIED MALE: Any other way of life -- Christianity, Judaism, Buddhism, atheism, communism, Catholicism -- all of these ways of life would not save anyone from hellfire, and they will be punished for this by Allah.

UNIDENTIFIED MALE: This is our mosque, another one.

ROBERTSON: Mini-cab driver Khalil Rehman has been living in this respectable, quiet suburb since emigrating to England from Pakistan more than two decades ago.

KHALIL REHMAN, TAXI DRIVER: We are in a happily living community.

ROBERTSON: He is shocked the radicals from his children's generation are moving in, threatening the neighborhood's delicate multicultural balance.

REHMAN: Islam means peace. And that's what we are doing, living peacefully together in harmony, as a community.

ROBERTSON (on camera): What's so shocking for the community here is not just that they have radicals in their midst, but that the group has been meeting right next to the main mosque in meeting rooms up here, propagating their hardline values and beliefs.

UNIDENTIFIED MALE: The Twin Towers were bombed. Two billion came down, 3,000 people died.

ROBERTSON (voice-over): Inside the mosque, we show its imam what's happening in the rooms next door. He is shocked.

GHULAM RABBANI, LEA BRIDGE ROAD MOSQUE: Really surprising. I could not expect the extent (ph) behavior, especially (INAUDIBLE) on desiccation. I think innocent people have been killed.

ROBERTSON: Rabbani leads the vast majority of the community's Muslims along a path of peace, tolerance and understanding. He could not be more different from the radicals next door.

RABBANI: We are proud to be Muslim and proud to be British. How can I say I am Muslim and not British? My religion is (INAUDIBLE), my country is Britain.

ROBERTSON: In the battle of beliefs, the lines are sharply drawn. Abu Muwaleed (ph) and friend say Imam Rabbani and other mainstream preachers no longer represent Islam.

UNIDENTIFIED MALE: These are the same people that are supporting the British government and justifying their policies and telling us to obey their laws and do obey manmade law and disobey God. So how are these -- how are these people -- who are these people to say that we do not understand Islam? They are the ones who calling us to disobey Allah and obey the queen.

RABBANI: I say very categorically and very clearly, they are misguided. They don't know the basis of Islam.

ROBERTSON: The rupture is opening a rift between generations. The hope here is that young Muslims will follow their parents and draw the minority radicals back into the fold.

(on camera): Walthamstow is one of the dozens of communities like this in London, one of hundreds across Britain. But it is in these communities where the battle for the hearts and minds of the Muslim community is being fought.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

LIN: CNN is committed to providing the most reliable coverage of news that affects your security. So stay tuned to CNN for the latest information day and night.

In our "World Wrap" tonight, more provocative comments from Iran's president. Today Mahmoud Ahmadinejead called Israel and I'm quoting here, the basic and fundamental problem of the Muslim world. and he urged Muslims to mobilize to deal with the issue.

Mexico's leftist presidential candidate apparently isn't moving on. Andress Manuel Lopez Obrador says he is the real winner of last Sunday's vote, not conservative Felipe Calderon. He's calling on supporters to rally in the streets. A recount showed that Calderon won the election by less than one percentage point. Lopez Obrador called those results fraudulent.

A royal welcome for Pope Benedict XVI, greeted in Valencia, Spain by king Juan Carlos and Queen Sophia. The Pope is their to address an international family conference, 1.5 million people are expected to attend the papal mass tomorrow.

France's Amelie Mauresmo won the women's single title at Wimbledon today. She beat Justin Henin-Harden (ph) in three sets.

So what killed Enron founder Ken Lay? Doctors say it's a threat to millions of us. Details in just three minutes. You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

LIN: Some states are stockpiling Tamiflu and other anti-flu medications now, even though flu season is months away. Other states are waiting until August 1st. That's when they can apply for federal assistance in buying those flu supplies.

A new study shows the number of American high school students smoking cigarettes has jumped slightly. The increase is the first since the teenage smoking dropped 40 percent since 1997 and 2003.

Sales of organic food are growing about 15 percent to 20 percent a year despite the demand, organic products still only make up 2 1/2 percent of the U.S. food market. The first of two memorials scheduled for Ken Lay will be held tomorrow in Aspen, Colorado. His sudden death Wednesday by heart attack surprised many. But doctors tell our Elizabeth Cohen stress can trigger a heart attack at any time. Her report first aired on CNN's "PAULA ZAHN NOW.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT, (voice over): Convicted Enron founder Ken Lay has a fatal heart attack awaiting a possible life sentence. Former Serb leader Slobodan Milosevic has a heart attack and dies while on trial for war crimes. Vice President Dick Cheney suffers a heart attack during the Florida recount in 2000. Coincidence? No. Doctors say stress most definitely can bring on heart problems. Studies show it time and time again.

DR. THOMAS PICKERING, COLUMBIA UNIVERSITY MEDIAL CENTER: Major life events such as being convicted of a crime contributed about the same degree of risk as having high blood pressure or being obese to the risk of having a heart attack.

COHEN: Once a celebrated businessman and part of the president's inner circle, just years later Lay was facing 25 to 40 years in prison and that must have been stressful and depressing.

PICKERING: I don't know whether he was depressed or not, but I think he would have good cause to be depressed and the two of those acting together could certainly increase his risk of developing a heart attack.

COHEN: Why would something centered in the brain make the heart more likely to give out?

PICKERING: The heart rate goes up, the blood pressure goes up.

COHEN: Also, stress and depression adversary affect hormones which can help lead to plaque deposits that can block arteries and lead to heart attacks. It can happen with chronic stress, such as Lay was under for years, but also with sudden stress, such as the phone call that a loved one has died.

PICKERING: It can be very quick. It can happen in minutes or a couple of hours.

COHEN: Studies have shown that people under work deadlines are six times more likely to suffer a heart attack during the next 24 hours. And that men who experience a conflict in the workplace have an 80 percent increased risk of heart attack in the next year.

This was not Lay's first heart attack. At 64, he had a long history of heart disease. But doctors say watch out for stress and depression even if you don't have a history of heart disease.

PICKERING: About half of the people who have a first heart attack have no previous history of any heart disease. So it can come completely unannounced. COHEN: His death is a lesson for the rest of us. Emotions can be deadly.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

LIN: PAULA ZAHN NOW airs weeknights right here on CNN.

Tonight at 9:00 Eastern, a special replay on "LARRY KING LIVE." Tune in to hear Ken Lay talk about his life in his own words. There's still much more ahead on CNN. Coming up, we'll introduce you to an escape artist. He's a killer whom police say that they can't seem to keep behind bars. He's escaped three times. Tonight he's still on the run. The story of Richard McMnair, coming up on CNN LIVE SATURDAY.

(COMMERCIAL BREAK)

LIN: A U.S. navy destroyer arrives in one of the world's hot spots as the U.S. tries to diffuse the diplomatic crisis with North Korea. We're going to have all the angles.

(BEGIN VIDEO CLIP)

GADAHN, AMERICAN AL QAEDA: Why should we target the military only?

(END VIDEO CLIP)

LIN: Meet the American face of al Qaeda in this new propaganda tape attacking his own country in its own language.

How did he get out of a maximum security prison? the answer is amazing.

Watch this killer talk his way out of an arrest by a cop who is looking for him. Tonight, inside the mind of a criminal houdini.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com

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