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Condoleezza Rice Pushes Plan for Peace in Rome; Continued Fierce Fighting Around Bint Jbeil in Southern Lebanon

Aired July 26, 2006 - 06:31   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody.
We begin with the latest in the Middle East crisis. Secretary of State Condoleezza Rice in Rome this morning. She is meeting with other top diplomats. They're discussing how to put together an international peacekeeping force along the Israeli-Lebanese border.

At least 12 people wounded after another round of Hezbollah rocket attacks on northern Israel. More than 300 Israeli civilians have been wounded since the fighting began.

Welcome back, everybody. You're watching a special edition of AMERICAN MORNING.

I'm Soledad O'Brien in New York.

Good morning, Miles.

MILES O'BRIEN, CNN ANCHOR: Good morning, Soledad.

Miles O'Brien, live from Haifa.

The air raid sirens blaring once again today. We're told by an Israel police spokesman that 37 rockets landed all throughout northern Israel so far today. And right now, it's 1:30 in the afternoon. Thirteen injuries, one of them seriously.

Take a look at this scene. This is just outside of Haifa. The most seriously injured person, a person just driving their car along when a rocket came down, a piece of shrapnel causing serious injury.

These Katyusha rockets are just packed full of ball bearings, and they create a tremendous swathe of potential damage around them. Just being near them puts you definitely in harm's way.

While the fighting intensifies at both sides of the border, the diplomacy continues as well. It has shifted now to Rome today. The secretary of state, Condoleezza Rice, pushing her plan for peace with European leaders, moderate Arab leaders and the United Nations.

CNN's John King is in Rome.

John, hello.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Hello to you, Miles. Let me try to give you a real-time display of the disagreements that are complicating diplomatic efforts here in Rome.

Just moments ago, the United Nations secretary-general, Kofi Annan, distributed the remarks he will make at the conference here. And Kofi Annan is calling for an immediate cessation of hostilities, and he says that would allow for a rush of humanitarian aid into Lebanon and into northern Israel, and also then for the political discussions about the critical and most difficult issues, things like whether Hezbollah should disarm, what should an international peacekeeping force look like, should the government of Lebanon do more to assert itself over this -- over this terrorist group.

That is what Kofi Annan wants, an immediate end to the violence, then deal with the difficult issues. And we know that Kofi Annan has support from a great number of the foreign ministers gathered here at the Italian Foreign Ministry to have these urgent discussions. But we also know this: the United States opposes such a plan, because it says it would not bring about a comprehensive solution and could only lead to a recurrence of all this a few weeks, a few months, or a year or so down the road.

What Secretary of State Condoleezza Rice is holding out for, we are told, is a solution that includes as part of any cease-fire deal a commitment from the Lebanese government and a commitment from Hezbollah to disarm and to provide more security, and an end to terrorism, essentially, rooted from southern Lebanon. But the United States, Miles, is outnumbered in these discussions.

We do know the leaders have what they believe to be a very generous humanitarian package the will announce today. The key question is, can they overcome their differences to come up with at least a plan calling for a cease-fire, an end of hostilities, and a new international peacekeeping force? But as the talks began this morning, we knew there were a number of significant differences remaining, and these remarks by the U.N. secretary-general, Kofi Annan, only reinforced that view, reinforced the challenge for Secretary of State Rice here in Rome this morning -- Miles.

M. O'BRIEN: I would assume, John, that not the least of the problems is the fact that the fighting in southern Lebanon does not appear to be winding down, and any notion of a peacekeeping force in the way we commonly understand them to operate, being in the middle of this very serious shooting war that's under way makes people step back a little bit.

KING: Exactly right, Miles. And the defiant comments by the leader of Hezbollah yesterday saying, not only would its attacks continue, but they would intensify and expand, have added to the urgency here. It is very difficult.

Remember the United States Marines' experience in Beirut. The French have had horrible experiences in Beirut. The Israelis have had horrible experiences in Lebanon.

So you're asking governments to sign up for a peacekeeping force at a time when you're not certain the violence will end and you're not certain whether Hezbollah will agree to disarm. So it makes the challenge extraordinarily difficult to get those governments to sign up.

A senior U.S. official said yesterday, as Secretary Rice came here, of course this peacekeeping force wouldn't shoot its way into southern Lebanon, but unless you have some agreement, at least a temporary agreement by Hezbollah to stop shooting things, it is very difficult to assemble this peacekeeping force, one of the many diplomatic challenges being dealt with here this morning -- Miles.

M. O'BRIEN: CNN's John King in Rome.

Thank you very much.

We will have live coverage of Condoleezza Rice and the secretary- general of the United Nations, Kofi Annan, as they deliver a news conference. That is scheduled to begin at 7:30 Eastern Time. You'll see it whenever it happens live right here on CNN.

Let's shift our focus now a little bit farther to the north, just south of the border with Lebanon, where we're keeping an eye on some continued fierce fighting focused around the town of Bint Jbeil. It's commonly referred to as the capital, if you will, of Hezbollah in southern Lebanon.

CNN's Matthew Chance is watching things from northern Israel -- Matthew.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Miles, thank you very much.

And that fighting is continuing over the past 24 hours. There's been a ferocious barrage of airstrikes and artillery fire from this side of the Israel border, across into southern Lebanon. Significant casualties being reported to us on both sides, a lot of Hezbollah fighters killed, but also it seems it is a very bleak day as well for the Israel forces.

They're reporting to us at least 13 casualties. Now, of course we're operating under censorship here in Israel. I can't give you information about the specifics of those casualties, I can't tell you whether any of those people are dead, but certainly it does appear very serious, indeed, for the Israelis, one of their biggest kind of incidents, it seems, to date in this -- in this conflict in southern Lebanon. The casualties have been taken out of southern Lebanon right now, moved into hospitals here in Israel where those that can be treated are being treated.

And as we speak, there is fierce fighting under way inside southern Lebanon still in that town of Bint Jbeil with Israeli forces and Hezbollah fighters really in very close combat. I've spoken to a number of soldiers over the past several days about what that combat is like, and it seems to be very tough, indeed. The Hezbollah fighters have had years to dig in, they are very well armed, they say, with anti-tank rockets and with anti-tank landmines, as well, and that is causing a great deal of pain to the Israel forces as they go about trying to break down Hezbollah there -- Miles.

M. O'BRIEN: There's a lot of talk today in the Israel media, Matthew -- I'm sure you've seen it -- that many people are concerned and somewhat surprised that the Israel army, with all of its weaponry and force, is having such a hard time of it with Hezbollah, 15 days later. The term that's being bandied about is they're bogged down.

What are people saying there near the front lines?

CHANCE: Well, they're saying that Hezbollah is a very tough force and people are very frustrated as well, as I'm sure they are where you are in Haifa. Because despite this massive barrage that Israel has unleashed on Hezbollah and on the infrastructure of Lebanon, the Hezbollah militia are still managing, as you well know, to fire these rockets repeatedly into Israel towns and cities across the north. And the Hezbollah leader has said, of course, that there will be more rockets to come, perhaps ones to reach even further afield than Haifa.

And so, there is a great deal of concern here, a great deal of frustration as well. But I think it just shows just how tough a guerrilla force Hezbollah has become.

It's had, as I mentioned, years to dig in. It's very well armed. It's studied the Israel military and it knows how they operate. And so, it's going to be very difficult for the Israelis or any multinational force to disarm them by force -- Miles.

M. O'BRIEN: CNN's Matthew Chance, who is in northern Israel, just south of the border with Lebanon.

Thank you very much.

Back to you, Soledad.

S. O'BRIEN: All right, Miles. Thanks. We'll check in with you in just a moment.

Let's turn to Beirut now. The first relief flight from Jordan has landed there. It's the first plane, in fact, to land at the battered Beirut airport bringing in medical supplies. And those supplies, of course, include a field hospital.

The relief plan is not going to be leaving empty. It's going to be carrying about 150 injured civilians out of Beirut.

At least 300 Americans may still be trapped in southern Lebanon. And their last chance to leave could be today.

U.S. officials say efforts will be made to get them out by ship from the port -- from the port of the city of Tyre. The problem is they have to travel on extremely dangerous roads to get to that port. Fifteen thousand Americans have been evacuated from Lebanon since the fighting began.

Ahead this morning, we continue with our coverage of the crisis in the Middle East. We'll talk to the U.S. ambassador to Lebanon about the very latest efforts to get humanitarian aid into that country.

Back in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: The latest now in the Middle East crisis.

Secretary of State Condoleezza Rice meeting in Rome this morning with other top diplomats. They're discussing how to put together an international peacekeeping force along the Israel-Lebanese border.

At least 14 people wounded, one seriously, after another round of Hezbollah rocket attacks on northern Israel. More than 300 Israeli civilians have been wounded since the fighting began.

It's 42 minutes past the hour. Let's check in with Chad Myers. He's at the CNN Center with an update of what we can expect today weather-wise.

Good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning.

It's summer, and it's going to be a summer day across the Northeast. Temperatures there in the 80s, even a couple spots to around 90.

Big weather, though, across the middle plains over the -- over the night. We had a lot of thunderstorms, showers, a little wind damage. Some spots, even some wind damage in Phoenix, Arizona, from some thunderstorms.

This is that tropical system still making some rain from Beaumont through Houston. There could be some flooding there in parts of Texas today.

Had some flooding around Phoenix yesterday, and it's still raining there now. Heavy wind gusts to 99 miles per hour.

Now, it was on a tower, it was on an airport tower there, 150 feet up in the sky. But, still, that was pretty big -- Maricopa airport there.

New York City, 88 today, hazy tomorrow. The same story throughout the weekend. Temperatures don't change very much.

Showers in St. Louis, especially later on today, but probably not severe weather for you.

Houston seeing rain. Only 84 in Houston because it just never warms up. You never see the sunshine there. So it can't warm up if you don't see the sun. It's just going to rain most of the day.

There's Phoenix, a little bit of a break in the heat, 99 degrees today. But not a break from the humidity. You get two inches of rain overnight, now that rain is going to want to evaporate. And it's going to be a muggy day.

Finally, Sacramento breaks tomorrow. So will most of the valley. It has been ugly there. Breaking records days, days, days in a row, over 100 degrees, from Redding all the way down to Bakersfield.

Soledad, back to you.

S. O'BRIEN: Ugly. Ugly. Ugly.

MYERS: It has been out there.

S. O'BRIEN: All right, Chad. Thank you.

MYERS: You're welcome.

S. O'BRIEN: Still to come on AMERICAN MORNING, Iraq's prime minister is going to address Congress today. He's come under fire lately for some on Capitol Hill, not for his work in Iraq, but fir what he's saying about the current Middle East crisis.

Also, we're going to talk to the U.S. ambassador to Lebanon and find out what's being done to help get more humanitarian aid into Beirut.

Those stories are ahead.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Day 15 of this conflict, and we have reports of more fierce fighting in southern Lebanon. By the rules of Israeli defense forces censorship, I can't give you specifics, but I can tell you this, heavy Israel casualties are reported today. A dark day for the Israelis as they continue their pursuit of Hezbollah in southern Lebanon.

Yesterday, also, a very unfortunate incident as an Israeli bomb fired on a U.N. observation post, killing four United Nations observers.

As this war continues, the collateral damage, as the Israelis say it was, an ever-present problem.

Joining us now from Beirut to talk about this escalation of violence in southern Lebanon is Ambassador Jeffrey Feltman, the U.S. ambassador to Lebanon.

Ambassador Feltman, good to have you with us.

First of all, have you heard anything directly from the Israelis, any sort of direct communication or explanation as to how that U.N. post became a target?

JEFFREY FELTMAN, U.S. AMB. TO LEBANON: Good morning.

No. Here in Lebanon, of course, we rely on the communication between our embassy in Tel Aviv and Washington with the Israelis. We're aware of the Israelis' commitment to investigate this incident and their expressions of regret, and we look forward to learning more about this -- about this regrettable incident.

M. O'BRIEN: The secretary-general of the United Nations, Kofi Annan, has apparently already drawn some conclusions. I want to share with you a portion of a written statement that was released after this became evident.

He says this: "I am shocked and deeply distressed by the apparently deliberate targeting by Israel defense forces of a U.N. observer post in southern Lebanon."

What do you say to that, when Kofi Annan is indicating it is a deliberate targeting?

FELTMAN: I think that we need to wait for the full investigation that the Israelis have committed themselves to do. It wouldn't be in Israel's interest to deliberately target a U.N. observation post.

M. O'BRIEN: We're told today there are serious casualties on the Israeli side. These Hezbollah fighters continue to dig in. Bint Jbeil, still a couple of dozen, at least, of these Hezbollah fighters, fighting very fiercely, tenaciously.

Does that surprise you?

FELTMAN: It doesn't surprise me, Miles. And one of the things that we're concerned with are the American citizens who are in that area. And so one of the things that we've been concentrating on is helping get the American citizens to safety. And there are a lot of great stories of heroism, of fellow Americans helping other Americans get to safety.

M. O'BRIEN: Yes. We've been talking about that. We just checked in, in Tyre, with Karl Penhaul. Three hundred Americans making their way out to safety right now.

What do you know about the whereabouts, if anything, of Hassan Nasrallah? There are reports in the media in this region that he might actually be in the Iranian Embassy, protected by the Iranians? Do you know anything about that?

FELTMAN: Certainly, it's a matter of great speculation, where is Hassan Nasrallah today? We have no information. We certainly hope the Iranians are carefully calculating what's going on here and drawing some lessons from this.

M. O'BRIEN: Do you think it's likely he's in that embassy?

FELTMAN: I have no ability to speculate on that, Miles. I'm sorry. M. O'BRIEN: All right. Help us understand the humanitarian crisis that is burgeoning there. One of the big concerns is opening up these so-called corridors, safe passage to get food, medicine and supplies to people in need there.

Is that going in a matter that you would call satisfactory?

FELTMAN: Yes. The secretary herself made this a personal commitment. She assured the prime minister, the speaker of the parliament here in Lebanon that she would see that these corridors operate and that people in need can get the medicine, the food necessary.

We were happy today to see the first flight, in fact, land, Jordanian flight, landed at the airport today bringing relief supplies. That's the first example of the corridor, the external corridor. And also, we're working now to make sure that the internal corridors are also operational.

M. O'BRIEN: Ambassador Jeffrey Feltman, the U.S. ambassador to Lebanon.

Thank you for your time, sir.

FELTMAN: Thank you.

M. O'BRIEN: We'll be back with more AMERICAN MORNING in just a moment.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: A reminder. We are following the news conference between Condoleezza Rice, the secretary of state, and Kofi Annan. We're expecting it at 7:30 Eastern Time, so in about 35 minutes or so.

It's being held at the Foreign Ministry Office in Rome. We're going to bring it to you live when it happens. We're watching that news.

In business news, we could be learning more about what some companies are paying their top executives.

Andy Serwer is "Minding Your Business."

A little sleuthing around.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": That's right, Soledad. Good morning to you.

With some 80 companies now caught up in the stock option back- dating scandal, it makes sense that the Securities and Exchange Commission is addressing executive pay and compensation. In the biggest change in nearly 15 years, the SEC will require companies to lay out, simply lay out what they're paying their chief executive officer, their chief financial officer, and their next three highest paid executives, because, you know, usually, Soledad, up until now, it's been spread out throughout documents.

Here, now, they're going to require it to be in one place, in one spot. What a relief that is.

And then, also, they're going to make companies talk about options and how they are being paid to executives. That will be addressing directly this problem.

S. O'BRIEN: Eight companies?

SERWER: Yes. It's truly -- it's truly amazing.

I don't know how the SEC...

S. O'BRIEN: Missed it.

SERWER: ... is keeping up with it or how they missed it. It's just amazing.

S. O'BRIEN: Gosh, 80 companies.

SERWER: Now, speaking of this stock option problem, one of the companies caught up in this scandal is Mercury Interactive. That's not stopping Hewlett-Packard from buying them, though. A $4.5 billion deal there. The stock of Mercury Interactive has been way down on this scandal, but HP is seeing fit to pay up some big bucks.

And then, finally, this morning, one more company to tell you about caught up in this scandal, animatronic Rodents. Animatronic Rodents. Chuck E. Cheese, the company -- the pizza time theaters, you know, where you bring the kids in and they have the rats dancing around and all the other characters, is saying that...

S. O'BRIEN: Even Chuck E. Cheese is doing it.

SERWER: Even Chuck E. Cheese. They've got some problems there. And they're going to be looking at their options.

S. O'BRIEN: Gosh. What has this great nation come to, Andy?

SERWER: Even this, Soledad.

S. O'BRIEN: Even this.

SERWER: Chuck E. Cheese.

S. O'BRIEN: Andy, thank you.

SERWER: You're welcome.

S. O'BRIEN: Let's get a look at the weather for the day ahead. Chad's got that. He's at the CNN Center.

Hello, Chad. MYERS: Hi, Soledad.

Today it's going to be hot across the West again. One more big day for California heat, and then it gets better from here.

Scattered showers and storms across the Great Lakes. Airports may not do so well today. There may actually be some cross-country delays because of the planes having to fly around big storms that roll through the planes.

(WEATHER REPORT)

MYERS: The next hour of AMERICAN MORNING starts right now.

S. O'BRIEN: Thanks, Chad.

Secretary of State Condoleezza Rice is hosting a major meeting in Rome right now. The leaders there trying to find a way to ease the suffering in the Middle East. Secretary Rice and the head of the United Nations will be holding a news conference live later on in this hour.

Also, Haifa hit again this morning. Hezbollah rockets are raining down in the streets. An update on the crisis in the Middle East is just ahead on this AMERICAN MORNING.

And welcome back, everybody. You're watching a special edition of AMERICAN MORNING.

I'm Soledad O'Brien in New York. Miles O'Brien is in Haifa. We'll check in with him in just a moment.

First, though, an emergency summit on the crisis in the Middle East. It's just about to end now in Rome. Secretary of state Condoleezza Rice meeting with foreign ministers from European and Arab countries.

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