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American Morning

Castro Communication; Cubans Celebrate; Crisis in the Middle East

Aired August 02, 2006 - 06:00   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, everybody. It is Wednesday, August 2. I'm Soledad O'Brien.
Here's a look at what's happening this morning.

Israel back to a full scale of airstrikes today, even considering attacks against Beirut. A bombing in southern Lebanon killed three Lebanese Army troops this morning. Meanwhile, there are reports that anywhere from 100 to 300 Hezbollah rockets have been fired at Israel today.

A statement said to be written by Fidel Castro says the Cuban leader is in stable condition and in good spirits. No pictures, though, have been released. And his health is being guarded as a state secret. Some are speculating that Castro is gravely ill or even dead.

U.S. border security failed a critical test. A report going to the Senate today describes how government investigators with fake I.D.s were able to cross every border they checked. That's from both Canada and Mexico.

Tropical Storm Chris is gaining strength, could become a hurricane later today. Storm warnings are up for many Caribbean islands. Heavy winds and rain on track to hit the Virgin Islands this afternoon.

And the temperature in New York already in the mid-80s. Look at these live pictures this morning. The haze there. Could go over 100 degrees today. The extreme heat from the Midwest to the east is creating a huge demand for power. No surprise there. New York is trying to conserve electricity by turning off the lights on top of the Empire State Building.

Brings us right to Chad, he's at the CNN Center with the forecast for us.

Chad, it was ugly yesterday here in New York.

CHAD MYERS, CNN METEOROLOGIST: Yes.

O'BRIEN: Is it going to be worse today?

MYERS: Yes, add three today. Add three more degrees on top of what you see here.

(WEATHER REPORT)

Back to you.

O'BRIEN: All right, thanks, Chad, we'll watch that.

You're watching a special edition, a split edition of AMERICAN MORNING this morning. Miles has the week off. He's on holiday. Rick Sanchez is filling in for him and he's in Little Havana in Miami this morning. The Cuban-American community there keeping a close eye, as many people are, on the condition and all the commotion surrounding Fidel Castro.

Hey, Rick, good morning.

RICK SANCHEZ, CNN ANCHOR: Good morning, Soledad.

They was dancing in the streets here in Little Havana yesterday. Obviously the folks here in Little Havana have a lot to think about, a lot, they say, to be excited about. There have been a lot of developments in the story, but still a lot of questions as well. There has been rampant speculation now over the real condition of Cuban leader Fidel Castro.

There has been a new statement, supposedly, and that's a key word here, from Castro himself. It says that he is in stable condition. That's part of the statement. The other one says that he is in good spirits as well. However, this is a statement that was read by one of the officials in Havana. Still no pictures of Fidel Castro, no one has heard his voice. In fact, no one has seen Raul Castro either, and that is certainly making a lot of people here in Little Havana wonder if his condition is much worse.

Many doctors have been weighing in as well, doctors with connections to the Cuban medical system, and they are saying they believe, given what they know, that there's a possibility that he may be intubated.

Of course all of this remains a mystery. Just a day earlier, the aging leader turned over control of the Cuban government to his brother while he recovers from what is being described as intestinal surgery.

CNN's Morgan Neill has been following this story for us. He's in Havana. He joins us now with the very latest.

And I can't help but ask you, Morgan, about this issue of this being a state secret. Wouldn't the Cuban government want to share Castro's condition to allay the fears?

MORGAN NEILL, CNN CORRESPONDENT: Well, Rick, what we're hearing and what we've heard in this statement is that that's due to what they are calling Cuba's specific situation. And then they refer to the imperial plans of its neighbor, the United States. And those are the reasons that we've been given for keeping the details of his health a state secret. Now while people here have been -- were certainly stunned Monday to hear that he was handing over power for the first time in 47 years to his 75-year-old brother, Raul, people now seem to be taking very much a wait-and-see attitude. They say, listen, we still have to go to work in the morning. And while this was a great shock, there's no real sense of panic here on the streets -- Rick.

SANCHEZ: They had this television program yesterday. It's called "Mesa Redonda," or "The Round Table." It's a discussion, essentially, by journalists about Cuban President Fidel Castro's condition. Didn't it seem at the time to you monitoring this, as it did to many of us, that we would be getting a statement from somebody in the government instead? What did you glean from that round table discussion -- Morgan?

NEILL: Well oftentimes what we hear on these -- on this in the round table. It's not a round table in the sense that we're accustomed to thinking about it. It is often a place where we hear the government's position on various issues more closely to fine. So while people were certainly anticipating more details, it's no great surprise that they would keep these details guarded as this is very much sort of the status quo of how things often operate here -- Rick.

SANCHEZ: Morgan Neill following the story there. We certainly appreciate it. Sorry, we -- Morgan, I lost your audio there at the very end. We'll certainly be getting back to you.

Meanwhile, news about Castro's condition is being watched extremely close in Washington who is indicating that they are not ready to deal with anyone by a last name of Castro, certainly not yet, certainly not until we see some form of democratization in Cuba. Even more so though, it's being scrutinized, and it's being celebrated as well right here in the streets of Little Havana, thousands of people taking to the streets here.

I've been following the story for decades, seen people take to the streets before, but never like we saw them last night. There seems to be some sense that something is about to happen, something big about to happen in Cuba.

Here now a look at the place where Cuban-Americans have been coming now for years and years on days like this.

(BEGIN VIDEOTAPE)

SANCHEZ (voice-over): To feel the pulse of Cuban-Miami, to understand why so many Cuban-Americans are so strident in their support of democracy, their hatred of communism, their extreme dislike of Fidel Castro, one has to come here.

Felipe Valls founded his restaurant 34 years ago.

FELIPE VALLS, RESTAURANT OWNER: It was one of the few places where I found something Cuban, something truly authentic to our culture. SANCHEZ: It's "Versailles" where among the guava-filled pastelitos and chicken croquettes, politics is the nightly staple served up with Cuban coffee as strong and pure as the passion displayed by these men and women who refer themselves not as Cubans, nor Americans, but as exiles hoping to return home.

UNIDENTIFIED MALE: It would be a dream for me for my parents to be able to go back there.

UNIDENTIFIED FEMALE: If it's not on the first plane, I'll go on the second one.

SANCHEZ (on camera): But you'll go back?

UNIDENTIFIED FEMALE: Definitely.

SANCHEZ: Is that important for all of you?

UNIDENTIFIED FEMALE: Of course.

SANCHEZ: Raise your hands. Yes. Yes. Yes.

UNIDENTIFIED FEMALE: Yes.

SANCHEZ: You'll go back?

(voice-over): It is their eternal hope to get back to a free Cuba. That's why the news of Castro handing power to his brother, Raul, brings them here. And here at "Versailles," as they have for decades, they break down the latest news, debate it, analyze it and argue it.

(on camera): Why Raul Castro?

UNIDENTIFIED FEMALE: I don't know why Raul, because he is not competent. He is -- he doesn't have the charisma. He doesn't have the personality. He does not have the know-how. And I think he's going to fall.

SANCHEZ (voice-over): Not all Cuban-Americans in Miami are so strident, so political. In fact, polls show many want to normalize relations with Castro's Cuba, something that decades ago would have been considered heresy. But Cuban-Americans who want to normalize relations are less vocal, seemingly less powerful and much less inclined to drink the coffee, unlike regulars here, like Jose Leaven (ph).

JOSE LEAVEN, CUBAN: Havana is the big city in the world. You know the big city. All casino, parade, gay, women, everything in Havana. You know that before the capital (ph).

(END VIDEOTAPE)

SANCHEZ: Mr. Leaven, like so many others, come here with a dream. They've been coming here for decades to this restaurant, "Versailles" that I have just here to my left, and they talk about what Cuba used to be. As Mr. Leaven says that of course their dream that eventually they'll be able to see that dream one more time.

We are going to be following what these Cuban exiles have to say. Believe it or not, at 6:00 in the morning here a.m., still they are already beginning to show up, already beginning to gather, to be able to tell their stories about what they expect will be happening soon in Cuba.

In the meantime, we're also going to be talking to a "Miami Herald" reporter that follows the Cuban exile situation and of course everything related to Cuba as well. That will be coming up in just a few minutes.

Soledad, back over to you.

O'BRIEN: All right, Rick, thanks.

Let's get to the expanding crisis in the Middle East now. Israeli troops strike deep into Lebanon hitting the Bekaa Valley northeast of Beirut. On the other side of the border, Hezbollah rockets are now slamming into northern Israel. Israeli officials say it's a bigger number of rockets than usual.

Let's get right to Anthony Mills. He's live in Beirut for us. Matthew Chance is covering the crisis from northern Israel. In fact, let's begin with Matthew this morning.

Matthew, what is Israel saying about the latest offensive?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well there is still fierce fighting under way between Hezbollah fighters and the -- excuse me -- the -- just getting back to my ear there -- Hezbollah fighters and the Israeli soldiers on the ground. There is a really intensive military operation under way. And as you mentioned, there are a lot of rockets being fired by Hezbollah into Israeli territory as well. And so obviously this is of great concern.

But you know what we're seeing now is serious fighting, really an expanded military operation for the first time in this conflict. Israel is saying that it is absolutely determined to establish a buffer zone that's several miles into Lebanese territory and to hold that area until such time as the multinational force is agreed and is prepared to take over -- Soledad.

O'BRIEN: Let me ask you a quick question, Matthew, if you can hear me now, is there a sense now that we're further away from a cease-fire than ever before?

CHANCE: Well that's a good question. It's a pretty difficult one to answer, because I think, from the Israeli point of view, a cease-fire will not come until such time as they are very, very confident that an international force would be available and willing and actually deploying on the ground to take over what they see as their responsibility, which is to keep, initially at least, the Hezbollah back from the Israeli border. They want a multinational force to do that. Until that happens, they say the guns will keep firing. O'BRIEN: Matthew Chance is in northern Israel for us this morning.

Matthew, thanks.

The Israeli strike near the ancient city of Baalbek in the Bekaa Valley near the Syrian border is a first. Israeli warplanes have hit the area considered a supply route for Hezbollah fighters. This is the first time, though, that Israeli troops have been on the ground there. We've got a live report coming to us in just a few minutes from Beirut. We'll be with that in just a few moments.

There is Anthony Mills right now. Anthony Mills for us.

Good morning to you, Anthony.

It looks like, in fact, our satellite is having some issues. We're going to bring him in in just a moment.

Let's move on now, though, and it's something you're going to see only on CNN. John Vause is the first television network correspondent who has been given a look at an Israeli ship off the coast of Beirut. The Israeli Navy ship called "La Hava" is carrying on a blockade of the port there and John gets a chance to take a tour. Take a look.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (on camera): This is the INS La Hava (ph), the flagship of the Israeli Navy. It's a Corbett (ph) class missile ship, slightly smaller than a freighter, but still it is heavily armed. Right here there are torpedoes. Part of the ominous (ph) includes harpoon missiles and what they call a Barak anti-missile defense system.

This is the flagship of the Israeli Navy. And right now it's serving as the command post, essentially, for the Israeli naval blockade off the coast of Lebanon. A lot of the technology aboard this ship we can't show you because of the Israeli censorship rules during wartime, but some of the technology is in a room just down here. They call it the CIC, the command and control center, effectively the nerve center of Israel's blockade off the coast of Lebanon.

A lot of the technology in this room we're not allowed to show you because of the Israeli censorship rules. It's high tech. But effectively what happens in here is that the Israeli Navy can see a radius of around 180 nautical miles, virtually up and down the coast of Lebanon, able to see every vessel which comes and goes. And the purpose of the naval blockade Israel says is to stop weapons, in particular missiles from Iran and Syria reaching Hezbollah, and also to prevent the two kidnapped Israeli soldiers from being smuggled out of Lebanon.

John Vause, CNN, on board the INS La Hava.

(END VIDEOTAPE) O'BRIEN: John Vause the first television network correspondent on board that Israeli Navy's flagship off the coast of Beirut.

Let's get to what's happening in America today.

A new government report is revealing massive corruption in Iraq. The report says the problem is so widespread it's threatening rebuilding efforts, international aid and confidence in the government. One Iraqi official says corruption has cost the country $4 billion a year.

An environmental battle may be brewing in Congress. The Senate voted yesterday to open up more than eight million acres in the Gulf of Mexico to oil and gas drilling. The move is in response to high domestic energy prices. The House is pushing for even more drilling in waters that are now off limits.

Damage estimated in the millions of dollars after a series of thunderstorms raged across Utah. In Provo, 80-mile-an-hour winds toppled trees, cut power to thousands of people. Nobody seriously hurt. The mayor says his city, though, looks like a war zone.

There could be more rain today in what looks like a flood zone in El Paso, Texas. The National Guard has been called in to help after a round of heavy storms left massive flooding. Rescue crews evacuated dozens of people from cars and rooftops. Hundreds of folks are now staying in emergency shelters.

In Tennessee, infant twins were left inside a car during the heat wave. They're recovering this morning. They're expected to be OK. Authorities say the 5 month olds were in the car for about half an hour before they were discovered. The temperature is 90 degrees outside, obviously much hotter inside that car. The mother has been questioned by police and released. She could face charges, though.

Extreme heat is a big concern for much in the northeast as well. And if you thought yesterday was bad, well, according to Chad, today is going to be worse. Chad has got the forecast for us coming up next.

Then a little something to send a shiver right down your spine, authorities may be on the verge of solving a 45-year-old cold case mystery. We'll tell you about the clue that led them back to that Wisconsin lake.

And celebration in the streets of Miami as speculation is swirling about the health of Fidel Castro. We'll take a closer look at why this Cuban leader evokes so much passion in people.

And Carrie Lee has business headlines this morning.

Good morning.

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

Auto sales numbers out from Detroit, we'll see how the big three automakers here in the U.S. stack up against their Japanese rivals coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

Israel has resumed full-scale airstrikes, is considering more attacks against Beirut. Hezbollah has unleashed a huge rocket barrage on northern Israel.

Fidel Castro's health is being treated as a Cuban state secret. A statement has been released saying he's in stable condition, but the Cuban leader hasn't been seen and no word on where he's being treated. And opponents in America are saying he may be gravely ill or dead.

It's already hot on the East Coast, expected to get dangerously hot today. Cities are taking health precautions, asking everybody to conserve electricity, too.

Let's get right to the forecast. Chad has got that.

Good morning to you, -- Chad.

MYERS: Did your air conditioner work all day yesterday?

O'BRIEN: It did not break, but today is the hotter day, so fingers crossed.

MYERS: Right, right, right, right, of course.

O'BRIEN: Hey, you know that story about those twins in the car, what are people thinking about?

MYERS: I didn't hear it.

O'BRIEN: My gosh, this woman was -- I guess police were interviewing her or questioning her about leaving her 5-month-old twins in a car. It was 90-some-odd degrees outside.

MYERS: Yes, you can't do that. Yes, I mean with kids, pets, whatever, I mean you just got to realize that this is going to be the hottest day of 2006, probably not of the 2006 so far, but of 2006 total everywhere up and down the East Coast, guys. So, come on, be careful here.

(WEATHER REPORT)

O'BRIEN: All right, Chad, thanks.

MYERS: You're welcome.

O'BRIEN: Still to come this morning, Mel Gibson apology version 2.0. He speaks out about that anti-Semitic rant, apologizes again. We'll tell you what he's saying right now.

And who needs a nap. Look at this little guy. He's not even 2 years old. Seriously, we're not making this up. He's all about the wake. He's a talented toddler water skiing. His story is ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Welcome back.

A look at some of the most popular stories this morning on CNN.com.

Israel is pounding Lebanon. Airstrikes resumed earlier today. Meanwhile, Israeli police say Hezbollah has launched 110 rockets today alone. The conflict is now in its 22nd day.

Montana Senator Max Baucus is mourning the loss of his nephew. Twenty-eight-year-old Corporal Phillip Baucus was killed in combat in Iraq this weekend.

And Mel Gibson is saying sorry again. This time the actor- director specifically is acknowledging the anti-Semitic remarks he made when he was pulled over, suspicion of DUI. No word yet if he's actually going to face a drunk driving charge.

Gas prices the way they are, you don't have to be a rocket scientist to figure out which automakers are going to do well.

Carrie Lee has got your business headlines this morning.

Good morning.

LEE: And you know it seems so obvious, you'd think Detroit would get a handle on this a little bit more, right?

O'BRIEN: We've said that many times.

LEE: Gas prices high, but we're seeing more of the same for July auto sales. Toyota, Nissan, Japanese automakers doing well, gaining ground. Ford, General Motors losing ground. This is what we saw once again. And in fact for the first time ever, Toyota sold more vehicles in a month in the U.S. than Ford.

Now the difference really coming down to fuel efficiency, U.S. automakers, as I said, saw big declines, particularly in trucks. Toyota, Honda saw big increases thanks to their reputation for fuel efficiency.

The numbers could potentially be prompting some changes at Ford. "Wall Street Journal" reporting today front page that it is -- Ford is reevaluating how to deal with some of its struggling brands, like Jaguar, and could potentially consider an alliance similar to the one GM is considering with Nissan-Renault. So that is the latest on autos.

Another big company falling on hard times lately, we're talking about Eastman Kodak reporting its 7th consecutive quarterly loss. The stock is now at a 15-year low. The company is still making a transition from film to digital. They are cutting 2,000 additional jobs. They announced over 20,000 job cuts a couple of years ago. Quickly recapping yesterday, Dow, Nasdaq, S&P losing a little bit of ground. The Dow down about 60 points. Saw some economic news. Consumer prices showing a pretty high level, and so that is prompting people to think we could see another interest rate hike, Soledad, when the Fed meets on Tuesday. But for this morning right now it's looking like a really bullish start to the session.

O'BRIEN: All right, let's see if that actually pans out, -- Carrie Lee.

LEE: Twelve hours to go.

O'BRIEN: Yes, thank you very much.

LEE: OK.

O'BRIEN: The morning's top stories are straight ahead, including the latest word on Fidel Castro's carefully guarded health situation. Many people think he's dying or he's dead. We're live from Havana just ahead this morning.

We're also following Israel's overnight raid striking deep into Lebanon. We'll tell you what's happening there as we continue right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Happening this morning.

Israel has resumed full-scare airstrikes. Is considering more attacks against Beirut. And Hezbollah has unleashed a huge rocket barrage on northern Israel.

Fidel Castro's health is being treated as a Cuban state secret. A statement has been released saying he is in stable condition but he hasn't been seen and there's no word on where he's being treated. Opponents in America are saying he may be gravely ill or even dead.

And it's already hot on the East Coast where it's just 6:30 in the morning, expected to get dangerously hot today. Cities are taking health precautions asking everybody also to conserve electricity.

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