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American Morning

Crisis in the Middle East: Attacks Escalate Between Israel and Hezbollah

Aired July 21, 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: Smoke rising along the border as attacks escalate between Israel and Hezbollah. Tank shells head north, Katyusha rockets heading south and a possible large-scale ground war comes closer to being a reality. That's ahead on this AMERICAN MORNING.
Good morning. Welcome to a special edition of AMERICAN MORNING. I'm Miles O'Brien in New York.

SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien. We're coming to you live from Jerusalem this morning. We're right in the heart of the city. It's a beautiful city right behind me -- Miles.

M. O'BRIEN: Thank you, Soledad. Back with you in a moment.

We begin with the latest developments in the crisis in the Middle East. Israel says it has enough troops massed for a possible invasion of Lebanon. The country warning civilians to get out of southern Lebanon. At least two Israeli soldiers dead overnight, several Hezbollah guerrillas killed in the fighting.

Here in New York, a U.N. briefing today for Secretary of State Condoleezza Rice. The administration refining possible proposals for a settlement. Rice expected to arrive in Israel as soon as Tuesday.

Meanwhile, the evacuation continues. Three plane loads of Americans fleeing Lebanon arriving in Baltimore overnight. More Navy ships on the way to help get Americans out of harm's way. Four thousand Americans are now out, another 4,000 waiting to evacuate -- Soledad.

S. O'BRIEN: Miles, thanks.

We've had an opportunity to take a little tour around the old city today. And one of the first things that you notice is security, security, security. Now, obviously, this is a region and a place, specifically, that always has a lot of security.

But today, and ever since the recent troubles as it's referred to, we have seen even more. When we went inside the old city, even to the Western Wall, you can see the checkpoints and people very aggressive about making sure that everybody has I.D.

The tone, though, as some people have said, some of the tourists told us, they think things seem very much the same. Some of the Israelis told us, though, that the tensions are higher, even in Jerusalem. Of course some of the concerns about now that Haifa has been hit with rockets, there are concerns that this is something that could spread further south.

All that being said, Miles, we've had an opportunity to talk to the deputy mayor of Jerusalem. And one of the things he told us is that here in Jerusalem they're taking in some of their brethren from farther up north in Haifa, setting up camps for them, places where they can stay, those who fled the area where those rockets are incoming.

Let's get to Paula Newton. She actually is right near there on that border between Lebanon and Israel.

Paula, good morning.

It looks like we're having some kinds of problems with Paula's satellite uplink, so we'll try to get Paula back.

The violence there, however, does continue. More rocket attacks to tell you about. We'll check in with Paula in just a moment.

Anthony Mills is on the other side of that very border. He is in Beirut today. Let's check in with him this morning.

Anthony, what's the latest from where you are?

ANTHONY MILLS, CNN CORRESPONDENT: Well the bombardments have continued here in Beirut overnight. In the southern suburbs, thunderous explosions rocking the city again. Of course the strikes also continue elsewhere in the south of Lebanon and also in the Bekaa Valley in the east.

Meanwhile, thousands of evacuees of foreign countries are taken out of Beirut by boat. We understand that yesterday 3,000 Americans were taken out. And of course the process continues. It's a massive process. And meanwhile, the bombardments, as well, do continue.

In the south, also, word from U.N. spokesperson Milos Strugar who has told us that in the last three days U.N. bases in the south of Lebanon have taken seven or eight shells from Israel. That's from Milos Strugar, the U.N. spokesperson in the south. So there, too, the bombardments continue.

Back to you.

S. O'BRIEN: All right, Anthony Mills for us this morning reporting from Beirut, whereas, he points out, the bombardment continues.

Continues on the other side of the border. Let's check in again with Paula Newton. I think we have managed to fix that live shot.

Hey, Paula, what's the latest where you are?

PAULA NEWTON, CNN CORRESPONDENT: They're going to try and come to me again. Waltz (ph), can you get back on camera, please? S. O'BRIEN: Yes, Paula, can you hear me? Paula, I don't know if you can hear me or if you're still having technical difficulties.

Paula Newton on the other side of the border in Israel, northern Israel.

Paula, can you tell us the latest where you are?

NEWTON: Good morning, Soledad.

It was a terrible evening for the Israeli forces on this side of the border, at least four Israeli soldiers -- yes, I can. Hello, Soledad.

There's -- Soledad. This has been a very, very tough evening for the Israeli soldiers. At least four Israeli soldiers killed on this side in Avibeam (ph) just behind me. We had heard reports all night that there was fierce fighting and that those troops did encounter Hezbollah militants wherever they were trying to go in to established Hezbollah outposts to take out what the Israeli Army says are weapons and launchers embedded deep within those outposts.

At the same time, we had a helicopter crash last evening that killed one Israeli soldier and injured three.

Soledad, it seems here that we see a lot more activity on the ground, a lot more Israeli soldiers moving up. This is not going to be a full-scale ground invasion today or in the next few hours, but you can certainly see the preparation for it on the ground.

Also, Soledad, we do understand that leaflets are flying into southern Lebanon right now. We do hear a little bit more activity in the air. And behind me, as I said, Israeli shelling continues. And in response, Hezbollah is hitting them with rounds of mortar.

Soledad, it does seem like if Israel wants to try and create that buffer zone in the border behind me that they are going to meet with fierce, fierce resistance still by Hezbollah -- Soledad.

S. O'BRIEN: Paula Newton reporting on what's happening on that northern border in Israel. Thanks, Paula, thanks. Appreciate you getting through our technical difficulties, too.

Let's get right back to Miles in New York.

Hey, -- Miles.

M. O'BRIEN: Thank you, Soledad. Back with you in just a little bit.

At the Pentagon, they say there are enough Navy ships now in the eastern Mediterranean to evacuate any Americans who would like to leave Lebanon.

CNN's senior Pentagon correspondent Jamie McIntyre has details for us. (BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT (on camera): After six days, the U.S. says it has pulled about 3,000 Americans out of Lebanon and has the capacity to take another 3,000 out today.

Yesterday, we saw U.S. Marines on the ground in Lebanon for the first time in more than two decades as they helped some 1,000 Americans get onto small landing craft and move out to the USS Nashville for the trip to Cyprus.

And yesterday, the State Department announced that 341 Americans who had been essentially trapped in southern Lebanon had been successfully moved by bus to the north to the port of Beirut so they could get on ships for Cyprus as well. And in fact, they got on the Orient Queen, that luxury cruise liner that was making a second run of taking Americans out of Lebanon.

Over the weekend, the U.S. military says it will have the full complement of nine U.S. warships, plus three commercial vessels, giving them plenty of capacity to take thousands of Americans out of Lebanon. In fact, they say, they'll have enough capacity to take as many Americans who want to get out out and they'll stay as long as that takes.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

M. O'BRIEN: Living with terror, nothing new to Israelis. Still to come, Soledad, will speak with the deputy mayor of Jerusalem about how life goes on there and how it is still a very nervous time.

And then reignited, southern California battling another round of dangerous wildfires.

And a different kind of problem on the East Coast, Tropical Storm Beryl passing right over Nantucket this morning. We're live on the island for you. We'll find out how bad it is and where it's headed next.

And Gerri Willis is here with business headlines.

Gerri, good morning.

GERRI WILLIS, CNN CORRESPONDENT: Good morning.

Federal Reserve Chairman Ben Bernanke out with comments, but not about the stock market this time. We'll have more in just a minute.

(COMMERCIAL BREAK)

M. O'BRIEN: Cyprus at this hour still a way point on the way home for thousands of foreign nationals fleeing the turmoil in Lebanon.

CNN's Chris Burns is in Larnaca on the east coast of Cyprus with more.

Hello -- Chris.

CHRIS BURNS, CNN CORRESPONDENT: Well good morning, Miles.

We're waiting for more ships to arrive in the next few hours. Over my shoulder is an Indian naval ship that brought in some 600 people early this morning. That was the last of seven that came here through the night, including, of course, the USS Nashville with some 1,000 people. And several thousand people are now coming through here per day.

There's also a lot of anxious moments. We have a guest with us who has been waiting for her son. And he's to be airlifted out.

If you can move in a little bit, -- Paula.

PAULA YACOUBIAN, WAITING FOR SON TO BE EVACUATED: Yes, sure.

BURNS: Yes, this is Paula Yacoubian. She's actually a Lebanese television journalist. And she was on -- she was in the States at the time and her son was stranded over there, 17-month-old son, Paul.

YACOUBIAN: Yes, he's 17 months old. And I left the day before all this happened. And this escalated so fast that we didn't know what to do. So my son is still there with his grandma.

BURNS: And how come he couldn't get out sooner?

YACOUBIAN: Well, it's taken a lot of time. I mean you've been hearing all the criticism...

BURNS: Right.

YACOUBIAN: ... around what's happening, about...

BURNS: He tried to get on several...

YACOUBIAN: ... how slow they were.

BURNS: Right.

YACOUBIAN: But I need to say something just to be fair. I mean the American Embassy in Lebanon are doing a great job. And even the American Embassy here in Cyprus, they're doing everything they can. But it looks like it's out of their hands.

BURNS: But you were waiting. You tried to get him on a ship, you tried to get him on a helicopter?

YACOUBIAN: Yes, I've been waiting here for five days, but...

BURNS: And why wouldn't they take him on? How come he couldn't get on?

YACOUBIAN: Well the problem is that my mom has medical problems, health problems, so they wanted also to do something convenient for them. So it was really nice. They've been helpful. But it's -- you feel like in the moment of crisis...

BURNS: Well you must feel so helpless at the time when the bombs were going off?

YACOUBIAN: Well, yes, you feel like the system is not working when there is a crisis, you know. It can happen anywhere every day. I mean wars are everywhere. They have to be more efficient in helping American citizens. And that's all I can do.

BURNS: OK.

YACOUBIAN: I mean that's all I can say, but I'm...

BURNS: Now he's being put on a helicopter today at the U.S. Embassy, right, in Beirut?

YACOUBIAN: Well not yet, he's still waiting to be...

BURNS: OK.

YACOUBIAN: ... lifted with my mom. And I wish them luck. I wish -- I'm thinking about all the people left behind. All those...

BURNS: You have family there as well?

YACOUBIAN: Definitely. I have my sister. I have my whole family is over there, and it's very critical, it's very difficult for them.

And can I say something about CNN? I mean you're doing great job, but you're not showing those horrible pictures out of Lebanon. There is people torn into shreds. There is -- I know those images can harm American viewers; but still, I mean you have to show them what's really happening.

When this all break out, let me continue, please, it's a great opportunity for me to speak out of Lebanon, just let me finish this. You're doing really great job. But the problem is, nobody is knowing what's happening. I mean it's going to end -- it's not going to end up. You cannot disarm or dismantle Hezbollah by airstrikes. You're only harming Lebanon, not harming Hezbollah.

BURNS: Thank you, Paula, thank you. Thank you very much. We've got to go.

YACOUBIAN: OK. Thank you.

BURNS: We've got to go. Thanks very much. Good luck, I hope your son makes it on the helicopter.

A very, very difficult time for a lot of people as they wait anxiously for people to come over. Of course some very strong emotions and opinions as this conflict goes on. And we'll be watching as people come out on this end. A lot of people very fearful, very worried for those they left behind as well -- Miles.

M. O'BRIEN: Understandably so.

Chris Burns, thank you very much.

Some good news for them, Delta Air Lines says it is offering discount tickets home for Americans fleeing Lebanon. The airline will give evacuees half off tickets to their final destinations once they reach the U.S.

Members of Congress on their way to Israel. House Speaker Dennis Hastert dispatching a bipartisan delegation. They'll meet this weekend with Israelis and Palestinians.

Secretary of State Condoleezza Rice in New York today to meet with United Nations diplomats just back from Beirut. Rice could go to the Middle East herself as early as Tuesday.

In India, police have arrested three people suspected in last week's train bombings in Mumbai. They had a court appearance today. At least 182 were killed in those train bombings.

Violence on the rise in Baghdad. A top U.S. general says the Iraqi capital has become a must win for the insurgency. Attacks against security forces in Baghdad have skyrocketed since last Friday from 24 a day to 34 a day.

The feds and the D.C. government working together to battle a crime emergency in Washington. They'll announce a new joint effort later today. There have been 15 killings in Washington this month alone.

In St. Louis, the governor of Missouri is sending in the National Guard to help clear debris from Wednesday's powerful storm. They'll also evacuate blacked out homes out of fears they'll turn into death traps in the heat.

And about three hours ago, Tropical Storm Beryl made landfall in coastal Massachusetts. Tropical storm warnings still in effect for the southeastern part of the state, but Beryl is expected to weaken over the next 24 hours.

And that brings us to our severe weather expert Chad Myers.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: Been here all morning, Miles, good morning.

The storm did roll over Nantucket as the storm moved up. Now it's going to be moving into Halifax, into Nova Scotia. Still a pretty potent storm at 50 miles per hour. All of those tropical storm warnings now going away because the storm is essentially going away. And by later today, the storm will be well up into the north Atlantic.

Right now it's actually over George's Bank. And if you've ever watched any of those lobster men movies or "The Perfect Storm" movie, that's where "The Perfect Storm" actually occurred. This isn't a perfect storm, but 10 to 20-foot waves, and that's enough, if you don't have a very large boat, to send you into some trouble.

(WEATHER REPORT)

And also we've dialed up flight tracker this morning. The storm is right about here. You'll notice there's not an airplane in sight. Yes, the FAA knows where the storm is and they don't send planes on purpose into tropical storms, just those hurricane hunters.

Miles, back to you.

M. O'BRIEN: That's right.

Chad, don't go away, we're going to bring in your colleague Rob Marciano who is on Nantucket Island as Beryl makes its way to coastal Massachusetts. And the weather so bad there he can't get on TV right now.

Rob, what are you seeing and hearing right now?

ROB MARCIANO, CNN METEOROLOGIST: Miles, we're on the eastern (INAUDIBLE) also the northwest indication that this -- it's actually off to our north. The beach erosion a problem and a concern here. But this thing moved through pretty quick. It didn't really start raining in earnest until 10:00, 11:00 last night. And by the time 4:00 a.m. rolled around, the rain pretty much gone. We're just getting little mild showers and squalls moving through at this time.

Winds only gusting really to 45 miles an hour here on the island now with a northwestern flow like 25, 30 miles an hour. No reports of power outages. There's some tree limbs down on the roadways and puddling on the roadways. Some levels in rainstorms.

And that pretty much has been the story for Beryl here on the Island of Nantucket. Comparable to a moderate Nor'Easter they're used to seeing more like during the wintertime.

But one comment, and more than one local has made to me here in the last day and a half, is that this is really early in the season to get a tropical system this far north and to make a direct landfall on Nantucket. Typically they're more into August and September. So that has people a little bit on edge. But Beryl, for the most part, not doing a whole lot of damage here this go around -- Miles.

M. O'BRIEN: Chad, are you there?

MYERS: Yes, -- sir.

M. O'BRIEN: Do you have anything to add to that?

MYERS: No. Actually, some of the waves he was talking about, the beach erosion, some of those waves were up to 19 feet out at the shore, so, and out at the reef, so there probably is quite a bit of beach erosion, especially on the east side. As soon as the sun comes up, we'll probably get a better handle on that. And we'll try to get a better signal when the wind stops there for him as well.

M. O'BRIEN: Yes, he's having a rough time there now.

MYERS: Yes, a little bit.

M. O'BRIEN: We'll get back with him.

MYERS: All right.

M. O'BRIEN: Hopefully get him a little more clearly the next go around.

MYERS: Right.

M. O'BRIEN: Thank you very much, Chad, and...

MYERS: You're welcome.

M. O'BRIEN: ... Rob Marciano on the Island of Nantucket.

Still to come on the program, President Bush may have vetoed the latest embryonic stem cell bill, but Republican Governor Arnold Schwarzenegger is giving stem cell research a huge boost. We'll explain.

And then the economic double whammy, what Fed Chief Ben Bernanke says energy prices are really doing to the nation's economy.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: This just in to CNN. We have a report from The Associated Press at least three rockets raining down on the port city, northern Israeli city of Haifa, a city of about 300,000, 20 miles south of the Lebanese border. Once again, the fighting continuing in earnest back and forth across the border between Lebanon and Israel.

We have CNN's Paula Hancocks there on the scene. As soon as we can get a hold of her, we'll get a report to you. That should be coming up momentarily.

Happening in America.

A test run for the Crown Princess. It's now steaming toward New York after leaving Port Canaveral, Florida. Investigators are on board to determine if the cruise ship can safely carry passengers once again. You'll recall on Tuesday this ship lifted hard to the left, injuring dozens of people. It's scheduled to depart for a Caribbean cruise this weekend.

In Florida, the so-called Band-aid Bandit is behind bars. Tampa police arrested Rafael Rondon at his home yesterday after surveillance cameras identified his license plate. Rondon is accused of robbing 40 banks over the past five-and-a-half years. Police say he wore a band- aid to cover a mole on his cheek. In Washington, a former U.S. Naval Academy quarterback cleared of rape charges, but a military jury did convict Lamar Owens on two lesser charges, including conduct unbecoming an officer. His lawyers say they'll try to get the judge to throw out those charges. Owens was not allowed to graduate or receive a commission in the Navy.

California Governor Arnold Schwarzenegger authorizing $150 million loan to kick start a stem cell research institute. The institute had been stalled by lawsuits. Schwarzenegger's move comes the day after the president vetoes a bill expanding federal funding for embryonic stem cell research at the federal level.

Barry Bonds' former personal trainer a free man this morning. Greg Anderson released from a federal prison in California yesterday. On his way out, served with a subpoena. Welcome to freedom. Anderson was jailed for refusing to cooperate with prosecutors in an ongoing steroid investigation.

Federal Reserve Chairman Ben Bernanke telling Congress rising energy prices impacting the U.S. economy across the board. Not exactly a news flash, Gerri Willis, we knew that, didn't we?

WILLIS: Well I'm telling you, though, you've got to watch Ben Bernanke because he can really affect the markets. And an interesting thing happened yesterday, the Federal Reserve chairman is learning how to play the game. On a second day of congressional testimony, he refused to comment on the markets. Asked about the Dow's 200-plus point rally Wednesday, he said, hey, nice try, I don't comment on the markets.

If you'll remember, earlier this year his comments to Congress caused stocks to rally. A few days later, he told a reporter that investors may have misunderstood him. Those comments caused stocks to sink. So he was mum on stocks yesterday, but he did comment on the economy, saying inflation is troubling, a slowing economy and declining oil prices will help control inflation.

And also want to note here, minutes from the last Fed meeting were released yesterday showing that the Fed decided to raise rates in part to meet expectations. They've got to show they're tough on inflation.

Now all of this decreased the likelihood of another interest rate hike in August. Good news for consumers and businesses, but that didn't help stocks. Yesterday the markets gave back some of Wednesday's gains. As you can see right here, the Dow down 83 points. The Nasdaq fell almost 2 percent on a weak forecast from Intel, a very important bellwether tech stock.

Futures today pointing to a higher open, so that's good news, and Bernanke learning how to play that game.

M. O'BRIEN: Yes, and probably not talking to reporters at dinners anymore either.

WILLIS: That's over, yes. Not a lot of fun there. So you know we thought we had a new, good, talkative source from the Fed.

M. O'BRIEN: Yes.

WILLIS: Not the case.

M. O'BRIEN: School of hard knocks Fed style.

WILLIS: That's right.

M. O'BRIEN: All right, thank you, Gerri Willis. See you in just a little bit.

The morning's top stories are straight ahead, including the latest round of attacks in southern Lebanon this morning. We just heard about rockets dropping on Haifa once again. We'll check in on that. Meanwhile, a humanitarian crisis developing as people try to flee the war zone.

Then U.N. Secretary-General Kofi Annan steps in to the conflict. He is trying to pressure Israel and Hezbollah to stop fighting.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: There's a scene, a joyous scene of evacuees being reunited from family members, loved ones, Baltimore Airport. Still many more in Lebanon trying to make their way out.

Good morning. Welcome to a special edition of AMERICAN MORNING. I'm Miles O'Brien in New York.

S. O'BRIEN: And I'm Soledad O'Brien reporting to you live from Jerusalem this morning, talking to Israelis about what they are thinking about this conflict -- Miles.

M. O'BRIEN: Thanks, Soledad. Back with you in just a bit.

New attacks this morning on the Israeli port city of Haifa. Further rocket firings. At least three rocket firings from southern Lebanon into that city.

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