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American Morning

Crisis in the Middle East; Sectarian Violence

Aired July 18, 2006 - 06:00   ET

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

MILES O'BRIEN, CNN ANCHOR: Good morning to you. It is Tuesday, July 18. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR: And I'm Carol Costello.

Soledad is on her way to the Middle East. Hopefully she'll be joining us later on AMERICAN MORNING.

Here's a look at what's happening right now.

Reports of new rocket attacks in Haifa, Israel. The Associated Press reporters saw rockets strike near the city's port and a railway depot. Smoke can be seen near those locations likely caused by Katyushas fired from southern Lebanon.

In Iraq this morning, a suicide car bombing has killed at least 45 people. It happened in a busy marketplace near a Shi'a shrine in Kufa. That's about 100 miles south of Baghdad.

O'BRIEN: In Afghanistan, the Taliban on the march again, taking control of two towns in southern Afghanistan. A suicide bombing at a Justice Ministry office there. And Taliban fighters shot and killed two Afghan police officers.

The Senate today expected to vote on that stem cell bill. The measure would lift restrictions on federal funding for embryonic stem cell research. The bill is expected to pass, but the president has already said he'll veto it.

COSTELLO: In Georgia, voters go to the polls today for a couple of big primary races. Former Christian Coalition leader Ralph Reed running for the Republican nomination for lieutenant governor. In the meantime, Democratic Congresswoman Cynthia McKinney is up for re- election. And of course you remember her recent scuffle with Capitol Hill Police.

The death toll from the tsunami that hit Indonesia's Java Island Monday is rising. Indonesian officials now say at least 305 people have died, more than 400 others are injured.

O'BRIEN: And beat the heat, if you can. Forecasters say temperatures across much of the country will soar into the upper 90s again today. It'll feel like 100 in a lot of places. At least one person has died as a result of the heat.

Chad Myers is at the new CNN Center Weather -- what do you call it, nexus of weather activity? COSTELLO: His new thingamajiggy.

O'BRIEN: Yes.

CHAD MYERS, CNN METEOROLOGIST: We'll just call it Doppler seven million, how's that, because it would be bigger than anybody else.

O'BRIEN: All right. Excellent. It's big. It's big.

MYERS: Good morning, everybody.

(WEATHER REPORT)

O'BRIEN: Thank you, Chad.

Here's the latest from the Middle East. The Pentagon stepping up efforts to evacuate the 25,000 Americans estimated in Lebanon. A chartered cruise ship is to take 750 at a time to Cyprus. It is a five-hour trip. They'll be escorted by a U.S. Navy destroyer.

Israeli bombs struck a Lebanese Army base and a house near the border killing 16. Hezbollah continues to return fire, launching rockets into northern Israel. At least 180 Lebanese and 24 Israelis now dead in 7 days of fighting. Israel says it will take at least another week to create a buffer zone in southern Lebanon. The U.N. is trying to negotiate a cease-fire.

Westerns are pouring out of Lebanon, but the U.S. State Department taking heat this morning for being too slow getting Americans out. Only a handful now safe in Cyprus. A French chartered ship got 1,200 people, French citizens, out yesterday. Most Westerners leaving Lebanon are crossing the Mediterranean. They're on their way to Larnaka, Cyprus.

CNN's Chris Burns live there for us now -- Chris.

CHRIS BURNS, CNN CORRESPONDENT: Well, Miles, you know that French chartered ship arrived here late last night and it was unable -- or early this morning, actually, unable to load all of those 1,200 people on. They came here with just short of 1,000, including 38 Americans. Over my shoulder is the Italian destroyer that arrived last night with about 400 people of different nationalities.

And of course what we're hearing on the Lebanon side by some Americans is frustration about how there is not yet an evacuation operation in full force. There have been some helicopter transfers from Lebanon over here. It's about a half-hour flight. But, for the most part, Omas (ph) trying to bring over the perhaps thousands of Americans who would like to come here has not yet got under way.

But we are hearing that there is an American chartered Greek cruise liner that is to be escorted by the USS Gonzalez. That is supposed to be happening perhaps today. We're trying to nail that down.

Meanwhile, last night, though, we got some of the stories from people coming off of this ship, as well as from other flights, including an American. Here is what some people had to say.

(BEGIN VIDEOTAPE)

BURNS (voice-over): In Cyprus' Port of Larnaka, growing signs that hopes of a quick end to the violence are dwindling. Hundreds of evacuees who fled in fear arrived from Beirut aboard an Italian destroyer.

UNIDENTIFIED FEMALE: I don't want to flee, but I have to teach them something. I really don't want to teach them and it's -- doesn't have any meaning or any logic.

UNIDENTIFIED MALE: I'm sad for the country -- to see my country again in a painful period, but I think it will pass.

BURNS: With the war zone less than a half-hour away by plane or a few hours by boat, Cyprus has repeatedly served as a haven during conflicts in the region.

As he decompresses, this Lebanese-American recounts the wild ride he and his relatives took at top speed through the streets of Beirut to reach a private company that evacuated him.

JADE JURI, LEBANESE-AMERICAN EVACUEE: It felt like a huge impact, like the car shook even while it was going about -- weaving in and out traffic going between like 60, 70 miles an hour or something like that.

BURNS: And he's got pictures to prove it.

JURI: We heard that two rockets had hit a building. We saw like the smoke come up from a building maybe a block down from where we were passing by.

BURNS: Jade Juri is among thousands of visiting Americans in Lebanon, home to an estimated 25,000 U.S. citizens. How many choose to leave will indicate how much the violence has shaken or shattered the dream of Lebanon's rebirth 15 years after a devastating civil war.

(END VIDEOTAPE)

And the pessimism grows. As each one of these ships arrives, the captain, the harbor master here has said that he hasn't seen this kind of evacuation effort since the civil war in Lebanon that ended back in 1991.

And just the list is growing of the number of countries that are planning to send out ships and bring them over. Tonight, tomorrow, there should be a Norwegian ship. The U.N. is bringing one, supposedly, on Thursday. So the list is growing of the number of countries and efforts of bringing expatriates out of Lebanon.

Back to you, -- Miles.

O'BRIEN: Chris Burns in Larnaka, thank you very much. On Capitol Hill, some calls for the Bush administration to do more to get Americans out of harm's way in Lebanon. Senators Harry Reid, Carl Levin and Edward Kennedy have written a letter to Secretary of State Condoleezza Rice and Defense Secretary Donald Rumsfeld.

The letter says, in part, "Given the intensity of the conflict and the need to ensure the safety of American citizens, we would ask that the decision to evacuate Americans be made at one, and that sufficient resources to expedite the evacuation be made available, ensuring the safety of these Americans must be our top priority."

If you have a loved one visiting Lebanon, instead of calling the embassy in Beirut directly, the State Department would like you to call this number, 888-407-4747, 888-407-4747. Also, you see a Web site there, www.travel.state.gov -- Carol.

COSTELLO: The northern Israeli city of Haifa being targeted again today. Explosions heard just minutes ago.

CNN's Paula Hancocks is live there now.

What are you hearing, -- Paula?

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Carol.

Well, yes, just in the last 10 minutes or so we heard two explosions as we were standing here in the court of Haifa. We also then heard the siren, which, in theory, is supposed to sound at least a minute before the explosions and the rockets reach themselves.

But that hasn't been the case in much of these rocket attacks. We've heard the dull thuds first and then the sirens telling the residents of Haifa to get indoors. But to be honest, most of them are already indoors, very few on the streets at the moment.

Now we believe we heard another explosion as well after the siren. At this point, no casualties have been confirmed, so it doesn't appear as though those rockets actually hit anybody or any buildings.

Now we know that also in the town of Safad (ph), which is much further north than here, we're about 25 miles south of the Lebanese border here, in that particular town there have also been a barrage of rocket attacks this morning. No casualties there either.

Now we have had a speech from Ehud Olmert, the Israeli Prime Minister, last night on Monday evening, and he was saying that he refused to let Israel be held hostage to terror any longer.

(BEGIN VIDEO CLIP)

EHUD OLMERT, ISRAELI PRIME MINISTER (through translator): When missiles rain down on our cities, our response will be to wage war with even greater determination. And we will show the willingness to make sacrifices for which these people is famous. There is no other people who wish more for peace and tranquility. (END VIDEOTAPE)

HANCOCKS: Now he has repeated his demands for a cease-fire. We've heard this before and it has been rejected by Hezbollah. But he has said that the two soldiers that were abducted a week last Wednesday must be released.

Also saying that the Lebanese troops must guard a buffer zone in between northern Israel and southern Lebanon. They don't want an actual international force there, he wants Lebanese troops. Also, Hezbollah must leave the buffer zone and not have any troops there or any of their rocket launchers.

And also he wants this U.N. Security Resolution 1559 to be adhered to, which basically means that Hezbollah must disarm -- Carol.

COSTELLO: Paula Hancocks reporting live from Haifa, Israel this morning, thanks.

O'BRIEN: Of course the heaviest fighting is along the Israel- Lebanon border. Israel pounding Hezbollah with artillery. Hezbollah responding with that barrage of rocket firings.

Chief international correspondent Christiane Amanpour is there.

Christiane, what is going on now?

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, Miles, for the last several hours we've been down here at an artillery unit, an element of the Galilee division, which is the division that's in operation all along this northern front area.

We have seen these mobile artillery pieces, tracked (ph) artillery pieces, 155 millimeter, big, strong pieces of artillery, as well as multiple launch rocket systems really being deployed quite intensively for the last several hours. They have been firing to the south, which is towards Lebanon, and -- or rather to the -- into southern Lebanon. And they've been doing that quite relentlessly.

The idea, as we spoke to the commander of all the operations up here, Brigadier General Gal Hirsh, he has told us that the idea is to finally disrupt and absolutely destroy the missile and military capability of Hezbollah.

We've been talking a lot about what the aims are. It's obviously to push Hezbollah back, to destroy their ability, not just to continue to threaten this northern part of Israel, but to destroy their ability to reach towns like Haifa, as they have done again today.

We have been told that this could go on for quite a long time. The brigadier general describes what's been happening for the last several days as phase one of this Israeli operation, saying that there is a contingency plan for phase two.

He would not be specific about what that entailed, but said that it could possibly entail elements of some kind of ground presence in Lebanon to get rid of what they call the massive buildup over the last decade of intensely powerful Hezbollah military positions and operations there. So that is their aim.

And they say no matter what happens, they are not going to stop and allow this to go back to what they call the status quo ante. In other words, to the kind of situation which allows an armed military group, which is not a sovereign army, not the Lebanese Army, to be able to sit here on the border and to be able to continue to do these operations -- Miles.

O'BRIEN: Christiane, are they talking about possibly then, as part of this phase two, re-occupying the southern part of Lebanon?

AMANPOUR: No, they're quite clear to say that that is absolutely not in their aim. And as we speak, we're probably going to hear some tank or rather artillery fire, because this has been going on. But they're not saying that that is their aim. You know they unilaterally withdrew from southern Lebanon back in 2000 and they don't want to do it again. They've had a painful and traumatic experience in Lebanon.

We even talked about the huge amount of casualties being inflicted in Lebanon during this operation. The brigadier general telling us that of course he felt sorry for what was going on, but they're trying to make sure that Lebanon is able to extend its sovereignty over the whole country.

And they're trying to make sure right now that they disrupt any kind of military operations by Hezbollah, which they haven't yet, as we can see, and any kind of ability to supply and resupply Hezbollah with missiles and other armament. That's why the sea blockade, that's why the blowing up of bridges, roads and other infrastructure.

What they're talking about in terms of potential ground, and they're not confirming that, but if they did, they say sort of commando operations, potentially to go in and take out what they call the gangs and the troops that are in there.

O'BRIEN: Christiane Amanpour on the Israel-Lebanon border, thank you very much -- Carol.

COSTELLO: And you heard Christiane talk about those Hezbollah- controlled suburbs of Beirut again being targeted this morning. But for the second time, Israel has also targeted the Lebanese military.

Our reporter in the region in Beirut, Anthony Mills, is live to tell us more about it -- Anthony.

ANTHONY MILLS, CNN CORRESPONDENT: That's right. A few hours ago we understand that the Israeli Air Force targeted a Lebanese Army position, about 20 kilometers northeast of here, killing at least nine Lebanese Army soldiers.

Now the Lebanese Army has not really been engaged in fighting back against the Israeli assaults on Lebanon, apart from possibly the odd salvo fired off by an anti-aircraft battery. But nonetheless, the Israeli assault is targeting the Lebanese Army. And we've had a rising death toll among the Lebanese Army members, although the majority of the killed here in Lebanon are still civilians. But nonetheless, Israel targeting the Lebanese Army and the death toll mounting.

COSTELLO: Anthony Mills reporting live for us from Beirut this morning, thank you.

President Bush will send Secretary of State Condoleezza Rice to the Middle East, but she won't go right away. The administration wants her to be -- wants to be sure that her mission will be successful. President Bush has tried both keeping out of Mideast politics and getting fully engaged.

(BEGIN VIDEO CLIP)

MADELEINE ALBRIGHT, FMR. SECRETARY OF STATE: I think it's a good idea. I think that it's something that I said I hoped she would do. I think the timing has to be discussed very carefully. But you know, in the end, every secretary of state, whether he or she wants to, gets involved in the Middle East. It's really what the job is about.

(END VIDEO CLIP)

COSTELLO: But both the governments of Lebanon and Israel say it is too soon for Secretary Rice to try her hand at defusing the situation.

O'BRIEN: In Iraq today, more sectarian violence, more death and destruction. A suicide car bomber killing at least 45, wounding 16 near Kufa. That's a city considered holy by Shi'a Muslims. Yesterday, 40 killed in an attack south of Baghdad. Nearly 100 Iraqis killed just since yesterday.

CNN's Arwa Damon joining us live from Baghdad with more -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: That's right, Miles. As you just mentioned, over 100 Iraqis have been killed in the last 24 hours. This morning's attack happened at 7:30 when a suicide car bomber drove his vehicle into a group of day laborers in the southern city of Kufa, killing 45, wounding at least 60.

Today's attack against a group of Iraqi civilians looking for work. Yesterday's deadly attack that killed at least 40, wounded 90, was against Iraqis who were shopping in a marketplace for their fruits and vegetables. Both of these attacks reminders over the last few days of just how crucial it is for the Iraqi government to be able to establish security and stability throughout this country -- Miles.

O'BRIEN: Arwa Damon in Baghdad, thank you very much -- Carol.

COSTELLO: And still to come, day seven of the Middle East crisis and the bombs and rockets continue to rain down. We'll have the latest developments for you.

O'BRIEN: Then we're going to hear from families desperate to get their loved ones out of harm's way in the Middle East. Find out what's holding up this evacuation.

COSTELLO: And another scorcher for much of the country today. We'll show you how some of the big cities are coping and if there's any relief in sight.

And Carrie Lee has business headlines this morning.

CARRIE LEE, CNN CORRESPONDENT: Thank you. Good morning.

We are going to tell you about a newspaper cutting its ad pages. This time the "Gray Lady" is slimming down. We'll have that and an early morning market check coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JURI: I feel a connection to this country and half of my family is still there and half of them that are still there are American citizens, so they'll eventually get out, but they still have to do the same thing we did. And it's only getting worse day by day.

(END VIDEO CLIP)

O'BRIEN: That's just one of the 70 Americans that have made it safely to Cyprus. The State Department believes there are 25,000 Americans in Lebanon. The U.S. government says it is trying to speed up the process of evacuation. We're watching that closely this morning.

Indonesia is mobilizing relief efforts for victims of yesterday's tsunami triggered by an earthquake. The tsunami hit the island of Java, killing at least 300, injuring more than 400.

An in New Orleans, word of three arrests amid rumors of mercy killings at a hospital after Katrina. The state attorney general has been investigating Memorial Medical Center. He'll hold a news conference a little bit later today -- Carol.

COSTELLO: It is hot, hot, hot in much of the nation. We're having a heat wave and it is a sizzler. How hot is it? Well transit officials in New York say excessive heat caused a rail on its subway system to buckle. About 300 passengers had to hike to the nearest station.

Long Island reported a new peak power record and a four-hour power outage at a terminal at LaGuardia Airport. That's blamed on the high demand for electricity. Today's forecast for New York, a sizzling 97 degrees.

In northern Illinois, in Chicago, an all-time demand for electricity too in the late afternoon. City workers are delivering water and checking on many older residents. Monday's high was in the upper 90s. Residents of the Windy City get a break today, the forecast calls for, well, a high of only 83. In Philadelphia, some kids are getting relief from the heat by playing in the spray from a fire hydrant. The heat is blamed for the death of a 60-year-old woman in that city. Much of Pennsylvania under a heat advisory. Today's forecast for Philly, 98.

So it is hot. We want relief and we want to know exactly when it's coming. The man who can tell us, Chad Myers. And this morning, CNN and Chad unveiling some new high-tech toys, so tell us about them.

MYERS: All right. This is a great Weather Center. They spent a lot of time on this. I know you've heard about it. You've probably read about it in the newspapers. This is now the new Weather Center and we're going to do a lot of things.

This is where you're going to see me the most. I mean literally when weather is just a story, this is going to be here. We're going to tell you the temperatures, we're going to show you the forecasts. Right now 77 in Philadelphia, 80 in New York.

But what's going to happen is when we really want to see what the weather is like around the country, when we need to do other things, when it's severe, when there are hurricanes, when there's even a tsunami, we could have done this yesterday, just wasn't open yet, this is the map down here that will show you. That's almost Bellefontaine, Piqua, and then there you go, 100 and 226 lightning strikes here.

Come back around here, another monitor that we have here. This will be showing you we're flying right into Cape Canaveral. Could have used this yesterday as the shuttle came running right down into the runway there, coming down. Instead of turning to the left and coming up the runway, it actually went down the runway yesterday because some showers got in the way.

And then we'll have more monitors here. Typically this will tell you what the temperatures, our highs for today. But typically this may have a reporter in there. Maybe Rob Marciano from the hurricane will be in this monitor in there. A couple more that I could walk down.

But the -- really the big story of this is where we have moved to. How we have moved, how we have changed, how this now is not on the seventh floor, literally two floors away from all of the news. This is now our new con, if you will. I have the con this morning. This is where the con will be. It is now in the newsroom. So we are literally not two floors away.

But when news happens, when things happen, we are in the newsroom, and this is basically the heart and soul of CNN. This is where news is made. And when we know the news, we know what's happening, we have the satellite feeds area now that you're seeing back there. Literally we are in contact with every affiliate in the nation. Whether it's breaking news or breaking weather, we are now going to have that pulse right here at CNN, right here at the CNN Weather Center.

The whole thing is going to change now because you'll probably see me. I feel -- when I sit here, I kind of feel like Han Solo. I feel like I'm flying with Chewbacca. But this is where most of the weather is going to occur.

When you see me sitting here, you know you just need to turn the TV up because something is going on. On a normal day, we'll be over there. But even today, we're going to have probably 200, 250 reports of wind damage, power lines down, maybe even in the city. We'll give you that forecast coming up in 10 minutes.

COSTELLO: Swanky digs, baby.

MYERS: Lots of money, man.

O'BRIEN: You want some more power, Chad, we'll give you some more power.

COSTELLO: Chewbacca.

MYERS: The only thing we don't have is a kegerator and again a coffee dispenser, but we're working on the coffee.

O'BRIEN: The kegerator.

COSTELLO: Kegerator.

MYERS: No.

O'BRIEN: You're kidding.

COSTELLO: You're full of something this morning, Chad, we're not sure what.

MYERS: I know.

O'BRIEN: I bet you can bury that in the expense report if you try hard enough.

Thank you, Chad Myers. We'll be back with you in that fine Weather Center all throughout the morning and all throughout eternity for that matter.

Still to come, hundreds more killed in overnight fighting in the Middle East. We will bring you the latest on all of that and we'll tell you about the attempt to get Americans out of harm's way in Lebanon.

And for us in the U.S., this crisis of course having a huge impact on oil prices. Carrie Lee has business news for us.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: This just in to CNN. We're watching very closely the effort to evacuate U.S. citizens caught in harm's way in Lebanon, estimated to be about 25,000. So far, less than 70 Americans have been safely evacuated to Cyprus.

We're told, according to the U.S. Navy, that the cruise ship chartered for this effort, the Orient Queen, has now left Cyprus and it has about a five-hour journey to make its way toward Beirut, Lebanon. It can carry about 750 people.

So the round trip at least 10 to 12 hours, 750 people at a time, you do the math on that, but 25,000 potential Americans in Lebanon. That one cruise ship will take quite a bit of time to evacuate people, but at least the evacuation beginning in earnest as we're told just now.

The Middle East crisis of course making for a very volatile crude oil market, to say the least.

Carrie Lee has been watching it for us.

Good morning, -- Carrie.

LEE: Good morning, Miles. Good morning, Carol.

Well we are seeing oil creep up a little bit, just about 6 cents or so per barrel. This after oil fell by $1.73 yesterday. A couple of things happening here. First of all, there were hopes on the diplomatic efforts could ease tensions in the Middle East and some analysts are saying the drop would have been even greater if it weren't for issues like Iran's nuclear dispute. So oil in the $75-a- barrel range, well below that record we saw above $78 late last week.

Now the markets also rebounded slightly. The Dow Jones industrials higher by 8 points. This after the industrials fell for three straight days last week, losing nearly 400 points. Nasdaq up less than half a point, you can see here. Mixed earnings results. It's not really giving investors much of an incentive to buy.

This morning, we will get a look at consumer prices. That's going to be a key thing to watch. And ahead of those numbers, it is looking like another weak start on Wall Street.

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