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American Morning

New Airstrikes; Crisis In The Middle East; Bush Speaks On Mideast; Uneasy New Orleans

Aired July 31, 2006 - 07:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome back, everybody. I'm Soledad O'Brien.
TONY HARRIS, CNN ANCHOR: And I'm Tony Harris in today for Miles O'Brien.

O'BRIEN: Nice to have you. Thank you for helping me.

HARRIS: Good to be with you.

O'BRIEN: Well, thank you very much.

Let's get right to our top story this morning. A little more than an hour ago, Israel carrying out air strikes in southern Lebanon. Israel's army said yesterday it would stop air attacks after a missile strike killed more than 30 people in Qana. Well, today's air strikes in Tyre killed one aide to a Lebanese army general, wounded three soldiers. Let's get right to CNN's Ben Wedeman. He is in Tyre.

Ben, good morning.

BEN WEDEMAN, CNN CORRESPONDENT: Yes, good morning, Soledad.

Yes, well Israel says it has suspended air activity over southern Lebanon for 48 hours, but it does appear that they are carrying out some strikes, as you mentioned. That aide to a Lebanese army general was killed, three soldiers wounded to the south of Tyre.

Also, Israel is continuing its artillery bombardment on areas in the south, especially around the town of Hiyam (ph), to the southwest of here. But by and large we are hearing planes flying overhead, some distant thumps of artillery. But it does appear, for instance, that in this area, south of Tyre, the bombardment has abated somewhat.

Now, Soledad, I was in Qana earlier this morning. There, most of the civilian inhabitants have left the area. Mostly today there are people who are going up to get their clothing, get their belongings. They're moving out.

The Lebanese civil defense workers are still digging through the rubble, looking for more bodies. It's not clear at this point what the final death toll. We're hearing anywhere between 34 and more than 60 dead. Those numbers we're hoping to clarify in the coming hours.

Soledad. O'BRIEN: Yes, can you elaborate on that for us, Ben? We've been hearing and reporting that an estimated 60 people were killed. Now it sounds as if that number may be downgraded a little bit.

WEDEMAN: Well, the discrepancy is between the number of bodies they've actually pulled out. And I was at this site speaking to the people who were pulling out the bodies. They said 34 as of this morning.

But the reason there's that much bigger number is that the understanding of the local authorities was that there were as many as 60 people in the building. But, of course, the town was under bombardment for about six hours between Sunday midnight and early Sunday morning. They don't know really at this point who was where. So we're expecting at some point within the next 24 hours to get a more definitive number. But that's really the reason for the discrepancy.

O'BRIEN: Ben Wedeman for us this morning. He's in Tyre, Lebanon. Ben, thank you.

Tony.

HARRIS: Secretary of State Condoleezza Rice is on her way home from the Middle East right now. She carries with her a plan for a longer-term solution to the current Mideast crisis. CNN's John King is live in Jerusalem right now.

And, John, good to see you. Good morning.

JOHN KING, CNN CORRESPONDENT: Good to see you, Tony. Good morning.

As you well know, the Bush administration under worldwide criticism for not embracing an immediate, unconditional cease-fire. Well, Secretary Rice is on her way home, as you noted, and she says she has a better plan.

(BEGIN VIDEOTAPE)

KING, (voice over): Fresh from one diplomatic achievement, Secretary of State Rice set her sights on the bigger, much more difficult goal -- a full cease-fire between Israel and Hezbollah.

CONDOLEEZZA RICE, SECRETARY OF STATE: To make a cease-fire more than words alone, the international community must be prepared to support and sustain it. And I call on my international partners to do so this week in New York.

KING: Secretary Rice immediately headed home to oversee negotiations at the United Nations, voicing confidence there is a consensus on approach that includes a permanent cease-fire, deployment of the Lebanese army in areas now controlled by Hezbollah, an international embargo against rearming Hezbollah, and creation of a new international force to police any cease-fire.

RICE: And Lebanon should, assisted as appropriate by the international community, disarm unauthorized armed groups.

KING: Secretary Rice made no mention of concessions by Israel. But U.S. and Israeli sources tell CNN she was assured this weekend Israel is ready to discuss prisoner exchanges and returning disputed land to Lebanon as long as the soldiers Hezbollah kidnapped to provoke this conflict are released. Secretary Rice spoke hours after forcing a significant Israeli concession, a 48-hour suspension of air strikes in southern Lebanon to clear the way for major humanitarian missions.

RICE: These are important, yet temporary measures.

KING: The suspension of Israeli air strikes in the south is a direct fallout of the tragic bombing at Qana and the first time the United States forced a major Israeli concession since the hostilities began nearly three weeks ago.

(END VIDEOTAPE)

KING: The debate shifts now to the United Nations Security Council. The administration insisting its overriding goal is to end the fighting, but it also knows it has been under fire in recent days, criticized for being too lopsided in its support of Israel, especially across the Arab and Muslim world. And, Tony, as Secretary Rice returns home to sell this plan, she's hoping, hoping, that it quiets at least some of that criticism.

HARRIS: OK. And, John, just to be clear, is this essentially the plan that the Lebanese would agree to? We know that the secretary of state didn't have an opportunity to go to Lebanon and speak with officials there yesterday.

KING: It's a bit different than a proposal put forward by the Lebanese prime minister over the weekend. They have differences over the security force. Hezbollah did not embrace the disarmament part of the Lebanese peace proposal.

But Secretary Rice has had conversations with the Lebanese before her trip over the weekend was abruptly cancelled. They said she simply wasn't welcome in the wake of the tragic bombing. She believes the Lebanese will be fine with this. The big question, though, for the Lebanese in this plan is, will the government really stand up to Hezbollah?

So there's a plan on the table, Tony, but there are a lot of questions, a lot of debate still to come.

HARRIS: Yes. CNN's John King for us in Jerusalem. John, thank you.

And coming up in about 20 minutes, we will talk with Rice's top lieutenant, Undersecretary of State Nicholas Burns. He joining us live from the State Department at the bottom of the hour.

O'BRIEN: The diplomatic focus shifts to the United Nations this week. Let's get right to CNN's senior U.N. correspondent, Richard Roth. Richard, good morning.

RICHARD ROTH, CNN CORRESPONDENT: Good morning, Soledad.

The Security Council may discuss some of what John King was talking about and Condoleezza Rice's proposals. They already have a resolution circulated by France, which considerably matches some of her ideas. All of this after yesterday's frenzied diplomatic activity here.

(BEGIN VIDEOTAPE)

ROTH, (voice over): The Security Council came rushing in hours after the Qana attack. Lebanon was furious.

NOUAD MAHMOUD, LEBANESE REP TO U.N.: This is the time for action, not talk.

ROTH: Israel said it was sorry, but also blamed Hezbollah for using homes, like the one that was struck, as a launching pad.

DAN GILLERMAN, ISRAELI AMBASSADOR TO U.N.: When you sleep with a missile, sometimes you don't wake up.

ROTH: The U.N. secretary-general condemned the Qana bombing of civilians, but in frank language for the top diplomat, sounded fed up with the Security Council.

KOFI ANNAN, U.N. SECRETARY-GENERAL: I am deeply dismayed that my earlier calls for cessation of hostilities, immediately cessation of hostilities were not heed.

ROTH: But after hours of negotiating, the United States again rejected language which would have demanded Israel stop its offensive as part of an overall halt in the fighting. The Security Council's statement did express shock and distress over Qana, warned of the threat of escalation of violence, and settled on . . .

JEAN-MARC DE LA SABLIERE, FRENCH AMBASSADOR TO U.N. (through translator): Calls for an end to violence and underscores the urgency of securing a lasting, permanent, and sustainable cease-fire.

ROTH: Despite attempts by Qatar, the lone Arab country on the council, to toughen the text, the U.S. said a quick-fix cease-fire was not helpful.

JOHN BOLTON, U.S. AMBASSADOR TO U.N.: We don't think that simply returning to business as usual in the Middle East is a way to bring about a lasting solution.

ROTH: Lebanon said it would have liked a stronger response, but accepted more involvement by the Security Council.

(END VIDEOTAPE)

ROTH: Already scheduled also today, a troop contributors meeting for a potential international peace-keeping force that would go in if there's some type of diplomatic political framework for a settlement here.

Soledad.

O'BRIEN: Richard Roth for us this morning. Richard, thanks.

Tony.

HARRIS: President Bush is expected to talk about the Middle East crisis later this morning in Miami. That's where we find White House correspondent Ed Henry.

Ed, good morning.

ED HENRY, CNN CORRESPONDENT: Good morning, Tony.

Right around 100 days till the mid-term elections, so the president coming here to the Port of Miami later this morning to discuss the economy. One of the issues that he hopes Republicans will tout in November. But try as he might, the president cannot seem to change the subject from all these global hot spots, especially Lebanon. So, as you noted, we're told that the president will address the violence in the Mideast at the top of his remarks, just after 10:00 a.m. Eastern Time today.

This coming, obviously, as you heard John King say, Secretary Rice wrapping up her second diplomatic mission to the Mideast. We're told the president will discuss the way forward in the Mideast. But that way forward very unclear at this point, especially given the international outrage over the Israeli air strike on Qana. Before leaving the White House yesterday, the president called that air strike a tragedy. But once again, stopped short of embracing an immediate cease-fire.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The United States is resolved to work with members of the United Nations Security Council to develop a resolution that will enable the region to have a sustainable peace.

(END VIDEO CLIP)

HENRY: Now you heard from John King about that resolution that Secretary Rice has been crafting in the Mideast. We're told the president spoke by telephone with Secretary Rice no less than three times yesterday. Then, when he returns from here in Miami this evening, he will be briefed by Secretary Rice directly back in Washington.

Tony.

HARRIS: OK, Ed, what else is on the president's agenda today?

HENRY: You know it's interesting, he's having breakfast with community leaders here in Miami. But then before coming over to the port, he'll be visiting the National Hurricane Center. Important to remember that we're coming up on the first anniversary of Hurricane Katrina, just as the current hurricane season gets ready to heat up. You can be sure the president wants to make sure that he reassures Americans this time the federal government will be prepared, Tony.

HARRIS: OK, White House correspondent Ed Henry for us. Ed, thank you.

HENRY: Thank you.

O'BRIEN: Happening in America this morning.

The earth opened up in Tucson, Arizona. Take a look at some of these pictures. It followed days and days of heavy rain. A massive sinkhole literally swallowing a car. Look at that. Ooh, that's ugly. Fortunately, nobody was hurt. What a big mess, though.

British Prime Minister Tony Blair is scheduled to attend a global warming roundtable in Long Beach today with California Governor Arnold Schwarzenegger. Mr. Blair visited a San Francisco rehabilitation center yesterday. He also toured Silicon Valley. He's in California partly to promote British trade (ph) in California.

A very close call at a gas station in southern California. Take a look at this. Watch carefully as this car slams into the rear end, burst into flames. Everybody escaped, fortunately. You can see right there. The guy climbs in and grabs some stuff. The other guy grabs a woman out of the other side of the vehicle. Nobody was hurt, happy to report there.

It's going to be another hot day in Chicago. Heat warning remains in effect through tomorrow night. More than 20 people have been hospitalized because of those triple-digit temperatures and high humidity there.

Get right to the latest forecast. Chad's got that.

Hey, Chad, good morning.

(WEATHER REPORT)

HARRIS: And still to come, crime tape and police lights in New Orleans. Why headlines of shootings and murder may be one of the city's biggest obstacles to recovery.

O'BRIEN: And here's something that you don't really see usually in a desert canyon, a small creek turned to white water rapids.

HARRIS: And a very special kid you won't soon forget. He may have autism, but refuses to let that stand in the way of his karate dreams. Stay with AMERICAN MORNING. We'll be right back.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning. U.S. Secretary of State Condoleezza Rice says she believes a cease-fire between Israel and Hezbollah can be reached this week. She's looking for a U.N. Security Council resolution. Secretary Rice made her comments before she left Israel for Washington this morning.

President Bush is in Miami. He's expected to talk about the Mideast crisis. The president's scheduled to make his remarks this morning at 10:10 a.m. Eastern Time. We're going to bring you that speech live right here on CNN.

Israel says it will not drop bombs on southern Lebanon for two days unless there is an immediate threat. The suspension began overnight in response to the Qana killings that apparently has killed dozens of civilians. New report out this morning, though, of an air strike in Tyre, Lebanon.

New military presence to tell you about in Afghanistan. NATO assumed command from the U.S.-led coalition today in the volatile southern region. All part of an effort to stop the increasing Taliban violence.

And Iran is sending a not so veiled threat to the international community. Tehran says it will abandon a western nuclear incentive package if the U.S. Security Council approves a resolution against it.

Strong winds are threatening to fuel a massive wildfire in Montana. Take a look at these pictures. Flames have already burned 22,000 acres in Glacier National Park. So far nobody's been injured, no homes destroyed. A little good news there.

And Washington, D.C. trying to crack down on crime again. A midnight curfew for juveniles has now been changed to 10:00 p.m. That curfew applies to kids who are 16 and younger.

Still to come this morning, going to continue to update you on the very latest of what's happening in the Middle East crisis and much more.

Tony.

HARRIS: Let's take you now to Qana, Lebanon, the site of yesterday's deadly Israeli air strike. Brent Sadler is there for us live.

Brent, good morning.

BRENT SADLER, CNN CORRESPONDENT: Good morning, Tony.

You can see behind me there the collapsed building in which more than 60 Lebanese civilians were killed by that Israeli air strike. The building standing at an acute angle.

Earlier I looked around the structure. I could see quite clearly how those people had been huddling inside there, blankets and pillows and shredded mattresses all about there. A pretty awful sight inside. Now all the while, as I've been looking around this area, I've been hearing Israeli drones there, unmanned aircraft, reconnaissance vehicles, over this area, as well as a lot of air activity. Also hearing a lot of shelling coming, I'm told, some 10 miles south of this location.

Now the big question, Tony, is whether or not Hezbollah was using Qana at that time, and specifically in this area, to fire Katyusha rockets into Israel. Let's just slowly take a look at the wide-angle view, beyond the building behind me. And if we move the camera to the right, you can see that this area is indeed quite well suited for that kind of rocket launch. There, in the background there, olive groves. And the kind of undulating landscape that would be quite favorable for rockets to be hidden and for Hezbollah to operate.

This is the kind of typical Hezbollah terrain that is often used by their fighters in these sort of circumstances. Certainly we've seen rockets being fired from this area in the past. And over the many years that Hezbollah was fighting Israel, when Israeli troops (INAUDIBLE) south Lebanon nearly two decades ago, I certainly saw Katyushas firing from this sort of area. Whether or not they were fired close to the building, the Israelis say very close, perhaps 30 yards or so, and no one can prove that one way or the other.

One final note, of the bodies so far recovered from that building behind me, only 27, Tony, corpses were complete. All the others were fragmented, were torn apart, making their identification process very gruesome and very difficult.

Tony.

HARRIS: Brent, if you would, for folks who are just getting up to speed on this story after the weekend, would you put the town of Qana in perspective by taking us back 10 years?

SADLER: Yes. Qana has been a focal point of Hezbollah activity for many years. On the drive up here, a lot of devastation. Super markets smashed, many other homes smashed on the route into Qana. You see Hezbollah's leadership on posters. You see so-called resistance fighters also glorified on posters.

Now Qana really went into the chronicles of history for Lebanon because it was in 1996, April 18, that Israel was engaged in an operation, an air artillery and naval operation, called Grapes of Wrath. Similar to today, many parallels, it was then still started by the Israelis to destroy Hezbollah. On April the 18th, a shell, shellfire, hit a United Nations compound and killed more than 100 Lebanese who were sheltering in that U.N. compound. Subsequent investigations were inconclusive, but it really did create the fact that Qana is really a situation where history is repeating itself.

The actual location of the previous incident 10 years ago is several miles from this collapsed building where there are more than 100 graves. And every year there are official commemorations to mark the losses 10 years ago of Qana. That puts it into historical perspective, Tony, why the country reacted in the way that it did immediately after that strike.

HARRIS: Yes, just a bit of the deeper context of that story in Qana. Brent Sadler, we appreciate it. Thank you, Brent.

Soledad.

O'BRIEN: New Orleans' image is in danger after another bloody weekend. City officials worry the growing violence is going to hurt tourism just as the city's trying to bounce back from last year's hurricanes. Sean Callebs is live for us in New Orleans this morning.

Hey, Sean, good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Soledad.

Indeed, an on-going problem, these killings. A situation that only seems to be getting worse in this area. Now this weekend, Governor Kathleen Blanco weighed in. She says the National Guard, which has been patrolling the streets here for weeks, will stay on beyond September -- the initial deadline to pull out of this area. That in an effort to give police more time to get a handle on the drug trade that they say is fueling these killings.

(BEGIN VIDEOTAPE)

CALLEBS, (voice over): Crime tape, police lights, and another bloody weekend in post-Katrina New Orleans.

UNIDENTIFIED FEMALE: I don't know. There's nothing going on! They got my grandbaby. Please bring him to me!

CALLEBS: Six people dead in three separate shootings this weekend. And this after five teenagers were killed a month and a half ago in a bloody shooting. Authorities blame the recent violence on the drug trade. New Orleans is struggling to rebuild, bring its residents back, and see tourists once again fill the French Quarter. But ask Mayor Ray Nagin about a perceived crime problem and he offers this rosy assessment.

MAYOR RAY NAGIN, NEW ORLEANS: The National Guard, state troopers and the NOPD have done an incredible job. Crime is dropping dramatically.

CALLEBS: City leaders say fewer people were killed this year in New Orleans compared to the same date last year. But there are far fewer citizens in the city right now. In an effort to allay fears that could cripple the rebuilding effort, police are telling tourists and law-abiding citizens they aren't being targeted.

WARREN J. RILEY, NEW ORLEANS POLICE SUPERINTENDENT: But it is clearly, clearly people who live the life that are involved in drugs and violence who are killing each other and who are dying.

CALLEBS: And, they say, the spade of killings also coincides with government benefits running out for Katrina victims. JOHN BRYSON, NEW ORLEANS POLICE DEPUTY SUPERINTENDENT: What's happening is that they have no jobs, they have no place to stay, so, therefore, they take to the streets and try to support themselves through the narcotics trade, which is dangerous.

CALLEBS: In fact, police say, this sign is right on the mark.

UNIDENTIFIED FEMALE: And I don't know what's next. What we're going to do with the young people.

(END VIDEOTAPE)

CALLEBS: It really bears looking at once again what Deputy Superintendent of Police Bryson had to say, offering the real first cause and effect for all this violence. Pointing out at the same time that FEMA and other government benefits for housing and other financial opportunities ran out, they we're seeing people who were staying in Houston and other cities come back to New Orleans. And what police say we're looking at now is a battle for the drug turf.

Soledad.

O'BRIEN: What he's indicating, too, is very dire. I mean, if you think about it, the deputy there, because it's only going to get worse. I mean, more people are going to come off the rolls and getting aid and assistance and they're not going to necessarily be able to get jobs. I mean, in a way, he had a very understated comment, but it's quite dire for the whole region.

CALLEBS: Exactly. And you've been here and you know that a lot of these really sketchy areas back right up to the French Quarter. So by saying that tourists and other law-abiding citizens aren't affected now, can't rule it out in the future.

O'BRIEN: Absolutely. Wow. Sean Callebs, that's a pretty scary story this morning. Thanks, Sean.

Tony.

HARRIS: And still to come, the story everyone's talking about, Mel Gibson arrested on suspicion of DUI. But the real scandal seems to be what happened afterward. Even Mel is apologizing. We've got that story straight ahead.

Plus a story for anyone who knows a child who is autistic. An unorthodox treatment. This boy's parents say karate has helped him in unimaginable ways. Stay with us here on AMERICAN MORNING. We'll be right back.

(COMMERCIAL BREAK)

O'BRIEN: Enron victims. Many who lost everything are getting a little satisfaction today. Andy Serwer's "Minding Your Business."

Good morning.

ANDY SERWER, CNN CORRESPONDENT: Good morning, Soledad.

That's because they've found out they're going to be allowed to be heard at the sentencing of former CFO Andy Fastow and former CEO Jeffrey Skilling. Victims of Enron's collapse, that would be shareholders, that would be bondholders, that would be employees, may submit in writing whether or not they want to speak, and then they are allowed to be, what is said, "reasonably heard."

O'BRIEN: How many people will they take? I mean, that could be a gagillion (ph) . . .

SERWER: There is no limit. And the judges are saying this could go on for a day or more than that even. One would think it would be several days. Is that where you're going?

O'BRIEN: I would think several weeks almost. I mean, think about it. And what's a reasonable amount of time, five minutes, two minutes?

SERWER: Well, someone here said three minutes. But the judge, Judge Hoyt, in the Fastow case, has not set a time. He says that they will be heard and it will continue until completed and Fastow must be there to listen. And one woman who worked at the company said, I can say some very, very powerful stuff. This is a new law, the Crime Victims Rights Act, which allows victims of crimes to speak at sentencing. Fastow, September 26, Skilling, October 23.

Speaking of white collar crooks, Bernie Ebbers tried to appeal his conviction. It didn't work. On Friday judges said no, no, no, we'll stick with that conviction. And he's looking at 25 years in prison. The judge said, well, you know, it's true that this is longer than sentences routinely imposed by many states for violent crimes, including murder. But what you did hear wasn't mere puffery (ph) or cheerleading.

HARRIS: OK.

SERWER: This was some serious business. He was convicted in '05. You know it's about time some of these guys actually do some time.

HARRIS: Serve a little time.

SERWER: Yes, I think that's it.

HARRIS: What are you talking about Mel Gibson for? What's that about?

SERWER: Mel Gibson, obviously this is a big controversy, Tony, and we're going to be tracking how he is doing in terms of raising money for his projects and how he's marketing his films.

HARRIS: OK. All right, Andy. Appreciate it. Thank you.

SERWER: Thank you. HARRIS: And still to come, Secretary of State Condoleezza Rice now says a Mideast cease-fire may be in sight. What turned the tide? Undersecretary of state for political affairs, Nicholas Burns, joins us next.

And in the wake of an Israeli raid that killed dozens of civilians, the Israeli military shares evidence that it claims proves Hezbollah is hiding in residential areas. We'll be right back.

(COMMERCIAL BREAK)

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