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CNN Live Today

Tour de France Winner Floyd Landis Fails Drug Test; 10-Story Building in Tyre Struck; Rockets Continue to Fall in Northern Israel

Aired July 27, 2006 - 11:00   ET

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


DARYN KAGAN, CNN ANCHOR: I'm Daryn Kagan.
This news coming out of Europe, where the American who won the Tour de France, Floyd Landis, with his incredibly inspiring story of winning with a bum hip, he has now, according to officials, failed a drug test for unusually high testosterone levels. His team has pulled him from competition until a second round of testing can be confirmed.

The team management and Floyd Landis releasing a statement saying they are both totally surprised by this result. It came on the 17th stage. And to give you -- to be more specific, that was the day when Floyd Landis had what some people called the most incredible ride in the history of the Tour de France, where he overcame an eight-minute deficit.

Once again, the American who won the Tour de France, Floyd Landis, failing a test for unusually high testosterone levels. Another round of tests before he would be stripped of his Tour de France title.

Let's get back to our Middle East coverage, taking a look at what we know.

The Israeli cabinet deciding against expanding the offensive in Lebanon. Israel's military commanders want to ratchet up operations.

Dozens of Hezbollah rockets pound northern Israel today. You're looking at the scene from one border town where a factory was hit. Israel says some of those missiles have been fired from the Lebanese town of Tyre.

So Israel blasted the city. A 10-story building was reduced to rubble. Neighbors say it was an apartment building and civilians lived there as well.

From Lebanon to Israel, Syria to Cyprus, CNN has reporters all across the region bringing you the latest on the fighting and diplomatic efforts to end it. Live reports are straight ahead.

We want to check in with our correspondents across the region.

First to Lebanon, to the southern city of Tyre. And that's where we find our Ben Wedeman -- Ben.

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Yes, Daryn. Let me just clarify something. From the city of Tyre itself, which is opposite to our camera, there really haven't been any Katyusha rockets fired. By and large, the rockets are fired from the east and the south of here, and that's where Israeli -- the Israeli air and sea bombardment has been most intense. It was very intense earlier in the day.

The significance of the hit on Tyre, actually the two hits -- there was last night a 10-story building was brought down by two Israeli rockets, and this morning another building was hit, not as severely damaged. Now, the building that was hit last night, local authorities say as far as they know, it was a civilian building. And they don't understand why it would be targeted by the Israeli air force.

We've heard from the Israeli army, on the other hand, that they believe -- they believed at the time that Nabil Qaouk, who is the military commander for Hezbollah in southern Lebanon, was in the building. Hezbollah denies that he was hurt in the attack.

The other rocket attack that occurred this morning in Tyre on that building I referenced, also according to the local authorities, a civilian building. But there are reports that the Amal movement, which is the other Shiite armed militia in southern Lebanon, was -- had some sort of office there.

Now, as a result of these two airstrikes on Tyre, the city itself, Daryn, we've had many people now deciding that it's time to leave. Less shops -- many shops that were opened have now closed and many people have left the city.

Yesterday, we were reporting that about a third of the city's inhabitants have left. Now it looks like as many as four-fifths of the city's 100,000 normal population are gone.

KAGAN: Ben, where are most people going?

WEDEMAN: Well, they're heading up to Beirut, up into the mountains. But, of course, the problem is that the facilities are under a lot of pressure up there.

A week ago I was in Beirut going around schools and government offices that had been converted to temporary shelters for these people, and already conditions were becoming difficult. Now they're even more difficult.

So it is going to be a problem. But at least they leave this area, which many people fear is under imminent bombardment.

KAGAN: Ben Wedeman, live from Tyre, Lebanon.

Thank you.

Let's head south across the border to northern Israel. That's where we find out John Roberts -- John.

JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT: Good morning to you, Daryn. We're up near the border, as you said. Not too far away. Can't tell us our exact location.

We're with a combat engineering unit that has arrived in the last 12 hours, getting ready to go across the border at some point. Can't tell you when.

I talked with a couple of the soldiers. They have seen action in Gaza before. They have not yet seen action in this war against Hezbollah in Lebanon.

I talked to a couple of them about what happened in Bint Jbeil yesterday, when those eight soldiers, including three officers, were killed. One of them told me, "It makes us all a little more frightened. It makes us all a little more anxious." "Of course, you're always going to be frightened and anxious going into war," he said, "but what we have to do is focus on doing our job."

Another one that I talked to, a second lieutenant, said that it makes him that much more motivated. Until that happened in Bint Jbeil yesterday, this was all about the mission and defending Israel. Now he says it makes it personal.

Despite the fact, though, that the Israeli Defense Forces claim to have had success against Hezbollah's infrastructure, command and control facilities, and gaining more intelligence about what they're up to, the Katyusha rockets continue to fly here into Israel. On our way to the border today, we drove past Kiryat Shmona. Just a couple of minutes before we got there, there were three Katyusha rockets that came in, one of them right along the very road that we were driving, and the road that we drive back and forth on every day.

It didn't do any damage. It hit at the edge of the road. It caused a substantial brushfire, but they're used to that here. You go -- you drive through the northern part of Israel, you see scorched hillsides all over.

Another one fell into a residential neighborhood, perhaps about a quarter of a mile away. That one did do some damage. It burned out a couple of cars.

The rocket came down on the sidewalk, actually hit the curb. And the explosive force of those rockets doesn't go down like it would with an artillery shell before it goes out. What happens is, is that all of that explosive force goes out.

And these things are packed with ball bearings. And you can see by looking at the damage of the cars that it looks like they were riddled with machine gunfire.

These ball bearings, every one of them is a projectile. And if the blast does not kill you, sometimes those ball bearings will if you're within the kill radius of that rocket.

Another rocket came down very close to a shopping center in Kiryat Shmona. There's a Burger King in there, there's a children's playground nearby.

Of course, there was nobody in the playground, there hasn't been since July the 12th. And we doubt that there was anyone inside that building as well, because when the alarms go off in Kiryat Shmona, people know well enough through experience because of all the rockets that have hit that town, that's the time you put your head down, that's the time you drop whatever you're doing. Even if you're in your car and you hear those sirens, you stop and you go to the nearest bunker, the nearest shelter.

So, that's why there were no injuries in Kiryat Shmona today. But they do continue to hit populated areas.

Those cars were right in front of an apartment block, that thankfully anyone who lived inside was already downstairs. A few windows blown out. We saw the injuries -- or not the injuries, but the damage from those ball bearings as they hit the front of that building.

But again, Daryn, no injuries today in these rocket attacks so far.

KAGAN: John, thank you. I'm going to let you go because we're getting breaking news out of The Associated Press reporting that the Palestinian prime minister, Mahmoud Abbas, is reporting that the Israeli soldier that they have, that his release is imminent.

Of course, this would be huge news, as this was one of the first incidents that touched off the incident in Gaza, and then it spread into Lebanon as Hezbollah crossed over the Israeli border and captured two Israeli soldiers there. So, once again, word from the Palestinian prime minister, Mahmoud Abbas, that it is imminent, the release of that first Israeli soldier that was captured some weeks ago.

We'll have much more on that as it develops out of Gaza.

Also ahead, al Qaeda now inserting itself into the latest Middle East crisis. The terrorist group's number two man is calling for Muslims around the world to rise up in holy war. Ayman al-Zawahiri issued the call today in a highly-produced videotape. He vows al Qaeda will not stay silent as Muslims are killed in Gaza and Lebanon.

(BEGIN VIDEO CLIP)

AYMAN AL-ZAWAHIRI, AL QAEDA (through translator): The whole world is an open field for us. As they attack us everywhere, we will attack them everywhere. They gang up to wage war on us. Our Islamic nation will fight them and wage war on them. The explosives and rockets that are tearing up the Muslims' bodies in Gaza and Lebanon are not only Israeli, they come from the crusader alliance countries.

(END VIDEO CLIP)

KAGAN: That video aired on Arabic language station Al Jazeera.

A new plan in the works to beef up Baghdad security and -- but not in time for today's coordinated attack. It killed dozens of Iraqis.

Our Arwa Damon is covering the new violence in the capital -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Daryn.

Well, we have just heard from the Iraqi police that six more bodies were pulled out from underneath the rubble of that incident, bringing the total killed now to at least 32 Iraqis, hundreds more wounded. The attack happened at 10:00 in the morning, and it was quite a coordinated attack. A car bomb detonated in that central Baghdad neighborhood, followed by rockets and then a mortar barrage.

Now, this is an area that at the time, 10:00 in the morning, would have been very crowded with shoppers. It is both a commercial and residential area. Scenes from the scene show the devastation that was happening there, and the target as of yet is unclear.

The neighborhood as a whole is mixed, but the area that the attack was focused on is predominantly Shia. And also, many politicians, senior politicians who are part of the Supreme Council for Islamic Revolution in Iraq do reside in that area.

Video broadcast on Al Iraqiya, the state-owned TV station here, showed angry residents, angry demanding, "Where is this Baghdad security plan? Where is the security plan that our government has promised us?"

Attacks like this don't only take a civilian toll, they also are devastating to the economy -- Daryn.

KAGAN: Arwa Damon, live in Baghdad.

Thank you.

More developing news here in the U.S. on what's happening in Louisville, Kentucky.

And for more on that, let's go to Fredricka Whitfield -- Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: Well, Daryn, FedEx is confirming that FedEx Flight 673 had a rejected takeoff. They're now inspecting the 727 cargo plane -- the picture is right there -- to try to determine if there were indeed any damages to this plane as the pilot decided to abort the scheduled takeoff out of Louisville, Kentucky.

That plane was scheduled to go to Memphis, which is the home base of FedEx. But, for some reason, there was a "rejected takeoff," is the terminology that FedEx is choosing to use.

There were three crew members on board. None of them were injured. And so the investigation is ongoing.

The airport is now waiting for permission from the FAA in order to actually move that plane to carry out further inspections -- Daryn. KAGAN: All right, Fred. Thank you for that. We'll be watching more out of Louisville, Kentucky.

Meanwhile, this big developing story that could be taking place out of Gaza. The Palestinian president, Mahmoud Abbas, saying that the release of an Israeli soldier could be imminent. That would have a huge development and huge effect on what is happening in the Middle East right now.

We'll have more on that as it develops.

We'll also go to Israel to see the story of one man who was actually born here in the U.S. but he is fighting for Israel.

That story ahead on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Let's go ahead and check out the markets.

(STOCK MARKET REPORT)

Let's take a look at what we know right now about what's happening in the Middle East.

Getting word -- The Associated Press says it is getting word from the Palestinian president, Mahmoud Abbas, that this young man, Corporal Gilad Shalit, he is the Israeli soldier who was captured in Gaza on June 25th, his release could be imminent. That is the news coming that is coming from The Associated Press from Gaza.

We will bring you the latest on that as it develops.

Also from the region, the Israeli cabinet decides against expanding the offensive in Lebanon. Israel's military commanders wanted to ratchet it up. One top Israeli general says his country's military offensive will last "a few more weeks."

Dozens of Hezbollah rockets pound northern Israel today. You are seeing pictures from the border town of Kiryat Shmona. Meanwhile, Israel has also targeted a number of sites in Lebanon.

There are Americans fighting Hezbollah. In fact, one family in New York has a long history of Israeli military service.

The story now from CNN's Alina Cho.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): For 21-year-old American Matt Bielski, fighting in the Israeli army is family tradition. So when Matt told his parents he wanted to join the Israeli Defense Forces, or IDF, they were not surprised.

JAY BIELSKI, FATHER OF AMERICAN IN IDF: I kind of expected it. I didn't want it to happen. I promised him a Corvette call every year if he would stay here and go to graduate school, but I knew it wouldn't work. And I did the same thing to my parents.

CHO: Matt's father, Jay, was first a U.S. Marine. He left to join the Israeli army in 1973, just in time for the Yom Kippur War. Then there's his father. Zeus Bielski and his two brothers led what historians call the largest armed rescue of Jews by Jews from the Nazis during World War II.

The Bielski brothers, the subject of a book and a documentary, saved more than 1,200 Jews, as many as Oscar Schindler.

BIELSKI: What I did and what Matthew is doing is a piece of cake compared to what they did.

CHO: Matt was born in the U.S., but also holds an Israeli passport.

MARGO BIELSKI, MOTHER OF AMERICAN IN IDF: Matthew went not knowing there was going to be a war. They went planning to join the IDF, and you know, be in the army and feel what it's like to help defend the country, but they really didn't anticipate a war.

CHO: The Bielskis keep a close eye on the news from their home in Valley Stream, New York, more than 5,000 miles away, and it can be grim.

Matt told his mother by phone the Israeli soldiers killed in Lebanon Wednesday were part of his unit. His parents try to talk to Matt a few times a week, like the day we were there.

MARGO BIELSKI: How are you, honey?

All right. Is everything OK?

J. BIELSKI: How's the war?

MATT BIELSKI: Good.

J. BIELSKI: It's good?

MATT BIELSKI: All right.

J. BIELSKI: Stay safe. Don't be a hero.

MARGO BIELSKI: Do you need anything?

CHO: Matt's mom, Margo, admits she worries a lot about her son, but she's certain he's exactly where he wants to be.

MARGO BIELSKI: He followed his dream to do what he wanted to do. You know, some people they say talk the talk. Well, he walked the walk. He went.

CHO: An American Jew defending Israel. In two years his parents hope he'll come home to the United States.

Alina Cho, CNN, Valley Stream, New York. (END VIDEOTAPE)

KAGAN: To politics now. One man who is not holding back, Democratic Party chairman Howard Dean. He takes aim at Iraq's prime minister.

(BEGIN VIDEO CLIP)

HOWARD DEAN, DNC CHAIRMAN: The president made a big deal about bringing the Iraqi prime minister to address Congress and met with him yesterday. The Iraqi prime minister is an anti-Semite. We don't need to spend $200 and $300 and $500 billion bringing democracy to Iraq to turn it over to people who believe that Israel doesn't have a right to defend itself.

(END VIDEO CLIP)

KAGAN: Prime Minister Nuri al-Maliki has condemned Israel's offensive in Lebanon, but not Hezbollah's attacks on Israel. He's visiting Washington this week, and his remarks have drawn criticism from many lawmakers. Some Democrats decided to sit out his address at a joint meeting of Congress, but the Republican National Committee rejects Dean's criticism, accusing him of trying to score political points.

Getting out. Incredible stories from evacuees who fled Lebanon.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: And more now on the information -- this is out of Rome -- with the Palestinian president, Mahmoud Abbas, and what he had to say. Apparently, this comes from a translation from The Associated Press about what he was saying at this news conference.

He says, Mahmoud Abbas, according to The Associated Press, "With regard to the issue of the abducted Israeli soldier, I have reiterated there are ongoing efforts that lead us to believe in an imminent solution."

And once again, that's The Associated Press that is saying there could be an imminent release of Corporal Gilad Shalit. He has been with Hamas since June 25th, when he was taken, and that led to military operations in Gaza and then to other events as the -- as Hezbollah crossed -- went across the Lebanese-Israeli border and then took an additional two Israeli soldiers.

More on that as it develops.

Right now, let's check in with our Chad Myers, who is watching weather here in the U.S.

Ooh, that is -- that's past red behind you.

CHAD MYERS, CNN METEOROLOGIST: Yes, for this time of day. (WEATHER REPORT)

MYERS: Daryn, back to you.

KAGAN: All right, Chad. Thank you.

Ten years ago, if you can believe it, a bomb shattered the spirit of the celebration at the Olympics. Here in Atlanta, the device exploded during a concert at the summer games -- here in Atlanta, just across the street from our studios, in fact. One person died in that explosion, more than 100 were injured.

Here's how the story unfolded on CNN that night 10 years ago.

(BEGIN VIDEOTAPE)

ANNOUNCER: This is CNN breaking news.

ANDREA ZINGA, CNN ANCHOR: Hello, everyone. I'm Andrea Zinga at the CNN Center in Atlanta.

We have had word now of an explosion at the Centennial Olympic Park, which, as you may know, is right outside of CNN Center.

UNIDENTIFIED MALE: Right now it is just an absolutely chaotic scene, and millions of people here are running up the street, and the police are running in and they're using physical force to blow people out of the way.

UNIDENTIFIED MALE: A very (INAUDIBLE) explosion that occurred. Everyone was immediately startled that was in the perimeter area.

We were behind the AT&T global village making our way through the park. And we literally were shaken by the explosion.

We tried to get into the area; police immediately ushered us out. In fact, there was a stream of people coming down from the AT&T global village stage running from the area.

They have lined up a number of ambulances here on Baker Street, which is adjacent to the park. I have not seen them come in as of yet, but they do have them apparently on standby to attend to the injured. Again, I am noticing a few more people are being helped out of the park who apparently were shaken up or were mildly injured.

(END VIDEOTAPE)

KAGAN: And in the aftermath of that event, Eric Rudolph pleaded guilty to the bombing. That was just last year. He currently is serving a life sentence.

Thousands have left Lebanon to escape the fighting. We will look at that just ahead.

You're watching CNN, the most trusted name in news. And before we go to break, we want to get back to this developing story out of Rome. And it comes from Palestinian President Mahmoud Abbas.

In a news conference following the summit where they're trying to work toward a cease-fire in the Middle East, the Palestinian president, in answering a question about the abducted soldier, the young man, 19 years old, who was abducted, Corporal Gilad Shalit, who was abducted back on June 25th by Hamas, the Palestinian president, Mahmoud Abbas, answered, and this is the translation that The Associated Press gives for his answer to the question, where he says, "With regard to the issue of the abducted Israeli soldier, I have reiterated there are ongoing efforts that lead us to believe in an imminent solution."

A solution, of course, that could lead to the release of that young man taken on June 25th. That was answered with a military strike, a number of military strikes and incursions by the Israeli military.

Much more on that ahead. Right now, a quick break.

I'm back after this.

(COMMERCIAL BREAK)

KAGAN: Looking at -- we're going to look at some videotape that was just shot in Rome, Italy, Palestinian President Mahmoud Abbas.

Let's listen to the question and the answer.

(BEGIN VIDEO CLIP)

MAHMOUD ABBAS, PALESTINIAN PRESIDENT (through translator): And we declare in front of you that we ask the world to bring with the United Nations troops to be a buffer in the Palestinian areas and the Israeli areas. And this has been requested for a long time. And I repeat it now.

No doubt that we appreciate to Italy that it's -- to hold the Rome conference, even though this conference cannot have complete cease-fire. However, has paved the way for the world to reach to a conclusion that there is a need for cease-fire because there is no other way.

(END VIDEOTAPE)

KAGAN: All right. To explain the look of that videotape, we were showing it to you as we were looking at it for the first time as well, as it rolled into us here at CNN World Headquarters.

Palestinian President Mahmoud Abbas, let's explain why this is newsworthy. First of all, the setting. This is Rome, Italy, where world leaders have gathered, trying to find some kind of solution, some kind of a cease-fire to what has been taking place across the Middle East. The Palestinian president was asked about an event that happened way back on June 25th. At this point, it seems like a long time ago. But it was June 25th that that young Israeli soldier, the 19-year-old, the corporal, was taken by Hamas, Corporal Gilad Shalit. And he has been in custody ever since. That first incident was answered by the Israeli military with strong strikes and attacks throughout Gaza. That preceded the next taking of Israeli soldiers, that took place along the Israeli and Lebanese border.

So there you have the Palestinian President Mahmoud Abbas being asked about what is happening in trying to get that soldier released from Hamas. And it says -- he was saying in that Associated Press translation that he does believe that the talks have been ongoing and that there could be a solution that is reached and that -- I'll just read the quote -- "That I'm told that as far as the question of the Israeli soldier is concerned, efforts are undergoing continuously that lead us to believe that the solution will be imminent." The latest development there out of Rome. We heard word from the associated president, and that was our first chance. Perhaps we can look at that tape once again and hear what the Palestinian president has to say himself.

All right. We'll work on that.

Once again, let's go ahead and put up the picture of the young captured Israeli soldier, the corporal, Gilad Shalit. I can tell you a little bit about him. He is 19 years old. And he was captured back on June 25th.

OK, I think we have the Abbas tape ready to go. Once again, Palestinian President Mahmoud Abbas.

(BEGIN VIDEO CLIP)

MAHMOUD ABBAS, PALESTINIAN PRESIDENT (through translator): I assured Mr. Prime Minister that the issue of the captured soldier, where there are many efforts to finish this problem as soon as possible.

(END VIDEO CLIP)

KAGAN: OK, that was very quick sound right there.

Gilad Shalit, 19 years old, the middle son of an Israeli family. He has a 21-year-old brother who studies in Haifa and a 16-year-old sister. And once again, in the Israeli military, and has been in the custody of Hamas since June 25th.

(NEWSBREAK)

KAGAN: We'll have much more on the statements from the Palestinian president after this break. I'm back after this.

(COMMERCIAL BREAK)

KAGAN: This is CNN breaking news. Let's get back to our breaking news story breaking out of Rome, Italy. It involves the Palestinian President Mahmoud Abbas, an answer he gave to the question about the Israeli soldier who was abducted by Hamas on June 25th. In it, when he was asked the question, the Palestinian president answered, and this is the answer as translated by the Associated Press. Mahmoud Abbas says, "With regard to the issue of the abducted Israeli soldier, I have reiterated there are ongoing efforts that lead us to believe in an imminent solution. I want to bring in our senior editor for Arab affairs, Octavia Nasr, to help us read into this.

First of all, this is an answer to a question. This is not President Abbas coming out and saying, hey, I've got an announcement for the world, we're on the verge of letting this guy go?

OCTAVIA NASR, CNN SR. EDITOR FOR ARAB AFFAIRS: Really, and his answer was very specific. He said that negotiations are intensified to ensure the release of the Israeli soldier. So basically he gave a diplomatic answer. But at this point, at this juncture, because tensions are so high everywhere, between what's going on in the Palestinian territories and Gaza and what's going on in Lebanon with Hezbollah, who also took two Israeli soldiers prisoners, I think everyone is paying attention to any sign of releasing that pressure. I think we have the...

KAGAN: The actual sound?

NASR: The actual sound from Mr. Abbas. If we can listen to it with our own translation, that would be good.

(BEGIN VIDEO CLIP)

ABBAS (through translator): I assured Mr. Prime minister that the issue of the captured soldier with us, there are many efforts to finish this problem as soon as possible.

(END VIDEO CLIP)

KAGAN: Very short.

NASR: Really. And he didn't say there's an imminent solution or we're working towards that. He really said that there are intensified efforts, which is good coming out of Mr. Abbas. That is big news, because prior to that, it was believed that Mr. Abbas does not control that situation. So just the fact that he's talking about it gives the indication that perhaps he has some kind of pull in that direction.

KAGAN: Well, actually that's a very good point. Let's talk about that. I mean, he could be talking, but he's not really the one who pulls the trigger.

NASR: Right.

KAGAN: He's not very politically powerful right now.

NASR: Indeed, and that is obvious, you know, to the world, and it's coming across clearly, but again, you have to think in terms of today and what he said today. And this is someone who feels confident enough to say it in front of the world, that the efforts are intensified, that some intense efforts are under way to release the Israeli soldier. In the world of diplomacy and in the world of the Palestinian territories, this is big news. We have to look at it as big news. Now, again, you know, this is a story that will reverberate everywhere, not just here in the U.S., but also in the entire Middle East region, but especially, especially in Israel.

And I think Paula Hancocks is going to join us.

KAGAN: She is. Actually she's ready to go, actually in Jerusalem.

Paula Hancocks, you've been covering this story quite a bit.

Paula, how would these comments reverberate across Israel?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, the fact is, it does show that President Mahmoud Abbas has still been talking to the Israelis and also talking to the Egyptian mediators who have been very much involved in trying to secure the release of Gilad Shalit and end this military operation that's been ongoing in Gaza for more than a month now. This is the second front that has been overshadowed somewhat since there has been a military operation ongoing in Lebanon, that this has still been ongoing. We know There were a number of Palestinians injured yesterday, on Wednesday, and also on Tuesday. It was one of the bloodiest days in Gaza itself.

So the fact is that Palestinians, militants and civilians as well, are still dying in these military operations. This is something that has not been focused on as much. It was brought back to the forefront when Condoleezza Rice, the U.S. secretary of state had a press conference with Mahmoud Abbas, went to meet him in the West Bank, and it brought it back to the forefront. And also, we have seen, obviously he's been making comments this Thursday with Romano Pradi (ph) as well, saying a solution is imminent. So it does prove that these negotiations are ongoing. Now the Egyptian mediators, we know, have been very heavily involved in this. They have suggested a couple of options, a couple of solutions. So it does give some hope that maybe one of these solutions is being seriously looked at.

KAGAN: It's certainly a different tone, because when Shalit was first taken, the original demand was that the Palestinians, or Hamas, at least wanted a thousand prisoners released in return.

HANCOCKS: That's right. That was Hamas specifically that wanted that, and we also heard the Palestinian Authority, the Hamas-lead Palestinian Authority, saying that all Palestinian women and children had to be released from Israeli jails.

Now these two demands were rejected point blank by Israel's prime minister, Ehud Olmert, saying there will be no negotiations, and there will be no prisoner swap.

But what we've hearing -- obviously, this is the public speaking from the Israelis and from the Palestinian Authority. In this region, there are always back channels. There are always behind-the-scenes discussions ongoing, no matter what the politicians are saying to the cameras. You always know that there will be some mediation behind the scenes that will be trying to secure the release of Gilad Shalit, and also trying to get some sort of deal that will keep the Palestinian militants happy as well. They basically can keep hold of Gilad Shalit as long as they want to. But obviously, the Egyptian mediators want to make sure this military operation in Gaza stops, because it is starting to count civilians among the casualties, and they want to make sure that both sides really can get what they want without feeling like they've given the other what they want. They can both save face. It's a very tricky balance for them.

KAGAN: Paula, we're hearing from another familiar Palestinian voice as the story develops. Palestinian negotiator Saeb Erakat now coming and saying, according to him, it's premature to say that Shalit would be about to be released. Tell us about the two different voices here, Saeb Erakat versus the Palestinian president.

HANCOCKS: Well, Saeb Erakat is very close to the Palestinian president, so he would be talking pretty much on behalf of him as well.

I think what we have been hearing from him is that a solution is imminent. I think how it was reported initially, was that his release would be imminent. Now those are two very different things. I think a solution to actually be able to decide what the situation would be, how it would pan out on the ground, whether there would be a prisoner swap, whether or not there would be the Palestinian women and children released, if not now, at least in the future, an agreement of the release of prisoners in the future, which was one solution that the Egyptian mediators came up with, which was, they will release Gilad Shalit if you give us a promise of prisoner releases in the future. It could possibly be something like this. But it is important to note it's the solution that's imminent, not the actual release.

But it does appear to be one step closer to securing at least some sort of peace in that particular area, where this military operation is still ongoing and is still quite ferocious.

KAGAN: Very important distinction there. Paula, thank you for pointing that out.

It has been just over a month. It was June 25th that Shalit was captured by Hamas. This, of course, has been a harrowing time for his family, that took time out not long ago to talk with our Larry King.

Let's listen in to that.

(BEGIN VIDEO CLIP)

NOAM SHALIT, ABDUCTED SOLDIER'S FATHER: Basically to avoid any more suffering, any more agony from the family, of course. And beyond this, thousands and thousands of innocent Palestinians are suffering from this issue, and they feel it every day.

(END VIDEO CLIP)

KAGAN: OK, once again, as we're going back to our breaking news story, this comes out of a response that the Palestinian president made in Rome when asked about the negotiations going on for the release for Mahmoud Abbas. Now this is the Associated Press translation. But I want to bring in our editor -- our senior editor for Arab affairs, Octavia Nasr, who's been able to listen herself and is fluent in Arabic, how you understand what the Palestinian president said, and the words, as you translate them into English, very important in terms of the news that it makes.

NASR: Absolutely.

KAGAN: Let's take that down and just talk to Octavia.

NASR: Really, you know, Mahmoud Abbas said one simple sentence. And in it, he's saying, you know, in regards to the abducted Israeli soldier, efforts continue to be intense to secure his release. Did he say that his release is imminent? No, he did not. Did he say that he had power to secure his release? He did not. All he said, really, in answer to a question, as you mentioned earlier, Daryn, very important, it's not like he had a statement on the subject. He was just answering a question. Basically he says that the efforts continue to secure his release. As a matter of fact, we have that sound from the -- from Mr. Abbas. And we can listen to it now with CNN's translation on it.

(BEGIN VIDEO CLIP)

ABBAS (through translator): I assured Mr. Prime minister that the issue of the captured soldier with us, there are many efforts to finish this problem as soon as possible.

(END VIDEO CLIP)

KAGAN: So once again, this is in Rome where these world leaders are gathered to try to come up with a solution of what's happening in the Middle East. He is asked about the situation with this young corporal. He does not come out and make a statement.

But one positive to his response, is he isn't ratcheting up the rhetoric. He is taking it in a different direction.

NASR: Right, he is saying that basically efforts are under way.

KAGAN: We knew that.

NASR: We knew that. But he's saying that today, which in the world of diplomacy means, you know, that at least, if things are not better, they're not worse; they're still where they are.

But important here to put things in perspective. Gilad Shalit is abducted and taken to the Palestinian territories. And in return, Hamas says, in return for his release, they want the release of 1,000 Palestinian prisoners in Israeli jails.

A few weeks later, Hezbollah in Lebanon, inspired by that operation, attacks Israeli soldiers, kill about eight of them, and take two prisoners into Lebanon, and no one know where's they are today. And of course, that attack, you know, brought what we saw in the last couple of weeks, the Israeli attacks on Lebanon, basically Hezbollah saying we won't return the soldiers unless there is negotiation, indirect negotiation about a prisoner swap. Israel saying we're not going to negotiate. And this is their answer to Hezbollah's demand.

So the picture is really much bigger than just the Israeli soldier in Gaza. It's now much wider. And as we heard earlier from Paula Hancocks there, you have Egyptian negotiators that stepped in...

KAGAN: Octavia, I'm going to step in here, because we do have another development that I want to get to. And I apologize for being rude.

First of all, I want to go ahead and welcome our viewers that are watching us all around the world on CNN international. I'm Daryn Kagan.

We're following this story, comments made by the Palestinian President Mahmoud Abbas as he's at a conference in Rome, trying to come up with a solution what's happening in the Middle East.

Palestinian negotiator Saeb Erakat with me on the phone right now.

Mr. Erakat, what can you make of what the president had to say?

SAEB ERAKAT, PALESTINIAN CHIEF NEGOTIATOR: Well, the president said that he's exerting maximum efforts in order to acquire the release of the captured Israeli soldier. But I don't think that he said that it's imminent. I think it's premature to jump to conclusions.

But I can confirm that President Abbas is exerting maximum efforts to acquire the release of the captured soldier. But at the same time, I don't think the president meant to say that the release was imminent.

KAGAN: So is the release -- we'll just ask you flat out -- is the release of Corporal Gilad Shalit, is it that imminent?

ERAKAT: Well, as I said, all I can tell you at this stage because of the (INAUDIBLE) of what's going on, is that efforts are being exerted by the president personally, the Egyptians, the government, but I cannot say that the release is imminent. And I don't think that the president said that. I think that was misinterpreted in the translation.

KAGAN: So, again, just to backtrack, the president at this news conference is asked a question. He didn't make a statement. He was asked a question, and it was his response that you believe, the first step, the Associated Press, you don't agree with the interpretation of what he had to say.

Would you disagree with how the translation -- so it's the translation, and you would say the media is making too much of what was said?

ERAKAT: No, all I said is that the president said that he is exerting maximum effort and working for the release of the captured Israeli soldier. But it's not imminent. I don't think the president...

KAGAN: Meant to the say that.

ERAKAT: Meant or said that release was imminent, yes.

KAGAN: OK, we're getting ahead of ourselves is what you're saying.

ERAKAT: That's right.

KAGAN: OK, let me ask you flat out then, what are the status of those talks?

ERAKAT: Well, there has been a lot of thought, a lot of work, a lot of (INAUDIBLE) being exerted, and acting for the stability of the situation, Kagan, I think rather just conclude by saying that efforts are being exerted, they're continuing to be exerted, but I would not jump to any premature conclusions at this stage.

KAGAN: Have you seen the corporal yourself?

ERAKAT: No, I haven't.

KAGAN: You haven't. And you don't know where he is?

ERAKAT: No.

KAGAN: But he is alive?

ERAKAT: He's alive, yes.

KAGAN: And negotiations are ongoing?

ERAKAT: And negotiations are ongoing, that's correct.

KAGAN: All right. We will live it at that. Palestinian negotiator, Saeb Erakat, thank you for that.

KAGAN: So let's bring Octavia Nasr back in here. That would seem to go in the direction of what you were saying. This, once again -- this was a question asked of the Palestinian president. He gave an answer. It was interpreted in one way. But in that world and in translation from Arabic to English, specific words are very important.

NASR: Yes, it's interesting that you said it was interpreted. You know, the interpretation can vary. People understand different things when they're interpreting. But when you're translating verbatim, word by word, as Mr. Abbas spoke, it was very, very simple. It was a very simple answer where all he said, really, is that efforts are -- continue to be intense to secure the release of the Israeli soldier. Again, this was not a statement. This was just an answer to a direct question about the soldier. So, you know, that is, as you say, in that part of the world, one little nuance can make a huge, huge difference. But here on CNN, as you know, Daryn, we take these matters very, very, very seriously.

And we have our own translation, of course. And as soon we saw the wire cross, for example, that the release was imminent, that's the first thing we did, is listen to Mr. Abbas. And we knew immediately that that's not what he said. And that's what we brought to our audience through our conversations.

So now what Mr. Erakat is doing, he's just confirming to us what was said. And he obviously cannot remember exactly what Mahmoud Abbas has said, but we heard it a couple of times here...

KAGAN: Right, heard it for ourselves.

NASR: ... along -- yes, with a translation. And we know what's going on.

KAGAN: Let's go ahead -- let's go back to Jerusalem and bring Paula Hancocks back in here. Because Paula, you made an interesting point. Even as talks go on, I thought you made an important point to point out that there's a big difference and there's a lot of space between talks, between solution and then release. Those are three separate steps.

HANCOCKS: That's right, yes. I mean, these talks are obviously ongoing. They have been ongoing since the 25th -- since June the 25th, when Gilad Shalit, this 19-year-old corporal, was actually taken. So it is very important to differentiate between those three things.

The fact is that the Egyptian mediators have been working hard. We've had mediators from other countries, as well, involving themselves in this situation, trying to find a solution between the Israelis and the Palestinian militants that are holding Gilad Shalit. And also the Palestinian Authority, that is calling for prisoner releases so that Gilad Shalit can be released, as well.

So, obviously, these have been ongoing for more than a month, because it is June the 25th that he was taken, and it's now more than a month -- July 27th -- and he still has not been released.

KAGAN: And also, we're getting from the Associated Press, Paula, a Hamas military spokesman now coming out and denying this report, saying that this captured Israeli soldier could be released imminently. So then you have Hamas coming out and making its own statement. Politically, what does that mean for the Palestinian president?

HANCOCKS: Well, the fact is that politicians don't actually know where Gilad Shalit is. President Mahmoud Abbas does not have the ear of Hamas, he does not have the control of the Hamas-led Palestinian Authority. He is, of course, the rival party, Fatah. So is the prime minister, Ismail Haniyeh, who is in charge of the Palestinian Authority. But then again, he probably doesn't know where Gilad Shalit is being held, either. It is probably one of these militant groups that actually carried this initial attack on June 25th and took him, and there's probably only maybe one or two people that actually know where Gilad Shalit is.

So as I say, it has been a month since this happened, and there has been a lot of negotiation, a lot of talk. But at this point, the Palestinian Authority still say that they do want at least the Palestinian women and children released from Israeli jails. Hamas itself saying that they want 1,000 more Arab prisoners from Israeli jails released, as well.

(BEGIN VIDEOTAPE)

HANCOCKS (voice-over): June 25th: one Israeli soldier is kidnapped by Palestinian militants and taken into Gaza. The conflict begins to escalate.

By July 25th, Israel and Hezbollah are at war. Missiles are launched daily. Two more Israeli soldiers are held in Lebanon. Civilian casualties continue to mount, with almost 20 Israelis and hundreds of Lebanese dead. Hundreds of thousands are displaced. Even by Middle East standards, it's been a bloody month.

After the kidnapping of Corporal Gilad Shalit, the Israeli military rolls across the border into Gaza. More than 120 Palestinians have been killed by the military in Gaza, according to Palestinian security and medical sources.

UNIDENTIFIED MALE (through translator): Let it be clear, we will reach everyone, no matter where they are, and they know it. There will be no immunity for anyone.

HANCOCKS: As July begins, buildings, roads and bridges are being destroyed. The Israeli soldier is still being held captive. Militants continue to launch rockets from Gaza into Israel.

July 12th, a bad situation gets dramatically worse. Hezbollah abducts two Israeli soldiers on the Israeli side of the Lebanese border. The Israeli military rolls into action on a second front, this time with greater force.

UNIDENTIFIED MALE (through translator): There are elements from the south and the north who are threatening our stability and who are trying to test our resolve. They will fail and they will pay a heavy price for their actions.

HANCOCKS: The next day, that price becomes clear. Israel bombs Beirut's international airport and some highways and ports are damaged.. Israel begins a blockade of Lebanon by land, sea and air.

UNIDENTIFIED MALE (through translator): If the Israeli enemy wants escalation and is thinking about making Lebanon pay a high price, we are ready for confrontation. HANCOCKS: Israel holds the Lebanese and Palestinian governments responsible.

UNIDENTIFIED MALE: Lebanon has been penalized for something that it has really expressed its opinion. And the Lebanese government has made it very clear that it had no information about this operation, and it takes no responsibility. And in fact, it is disavowing what has been made in this respect.

HANCOCKS: Hezbollah sends missiles over the border on a daily basis, 1,000 rockets hitting northern Israel and counting. The international community is split on the level of Israel's response.

KOFI ANNAN, SECRETARY-GENERAL OF UNITED NATIONS: While Hezbollah's actions are deplorable and, as I've said, Israel has a right to defend itself, the excessive use of force is to be condemned.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: All sovereign nations have a right to defend themselves against terrorist attacks. However, we hoped that they would restrain.

HANCOCKS: Missiles from both sides leave military personnel and civilians dead. Thousands are evacuated out of Lebanon; thousands more move further north, away from the Hezbollah stronghold in the south that's bearing the brunt of Israeli strikes.

In northern Israel, outside activity is limited. Life goes on behind firmly closed doors, and underground in bomb shelters.

(END VIDEOTAPE)

HANCOCKS: Now, a couple of days beyond one month since Gilad Shalit was kidnapped, though inevitably, the casualty figures have changed, as well. We know that at least 51 Israelis have been killed in both fronts of military operations and also in Gaza itself. Palestinian medical and security sources say there were close to 150 Palestinians killed.

Now, we've also heard from Israeli diplomatic sources that, as far as they're concerned, there have been no new developments in the case of Gilad Shalit -- Daryn.

KAGAN: All right, thank you for clearing that up. Paula Hancocks in Jerusalem, thank you.

One more number I want to add to the death toll. As Paula was looking at what's happening in Israel and Gaza, in Lebanon, they say at least 401 fatalities have been reported in a little more than two weeks of fighting there.

Just about a minute here left. Want to bring back in Octavia Nasr to talk about, quickly, the players here. Interesting you get this one little blip, this one little answer to a question, and suddenly you have a lot of different people claiming to speak for what exactly is happening. It started with the Palestinian president answering a question in Rome, but then you have Hamas pop up and say, whoa, hold on, nothing's happening here, this soldier is not being released.

NASR: You know, the only thing that we can get out of had is the intentions. So we know that Hamas has no intention to release the Israeli soldier they kept captive for the last month. It shows that the Palestinian president has the intention of attempting to release him. But it also shows the inability, really, of the Palestinian president and his people to control that situation. So it's interesting...

KAGAN: Politically, he's incredibly weak.

NASR: He is incredibly weak. And this incident in particular really highlighted the fact that he is weak, that he's saying things, he's trying to help. But really Hamas steps in immediately to say, wait a minute, nothing imminent. This person cannot negotiate for us. Very interesting development indeed.

KAGAN: A lot happening there. All right, Octavia, thank you for sitting in and giving us perspective on a story as it develops. And we watch it basically develop right here on air, as we had a chance to talk to Saeb Erakat, as well.

We're going to go ahead and continue our coverage. And I'm sure CNN International is following this, as well. They're picking up our coverage at the top of the hour. But once again, this begins just within the last few minutes, when the Palestinian president, Mahmoud Abbas, answering a question in Rome when asked about what is happening with the Israeli soldier that was taken captive on June 25th.

I'm Daryn Kagan. Our coverage continues here as we join our sister network, CNN International, in just about 10 seconds.

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