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American Morning

Croc Hunter Killed; Jordan Shooting; Terror Leader Caught; Shot Trooper Dies; A Tearful Goodbye; Bush And The Economy; Battle For Congress; Iran In The Spotlight; Violence Continues in the Middle East; Boston Police Department Rocked by Scandal

Aired September 04, 2006 - 07:00   ET

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

MILES O'BRIEN, CNN ANCHOR: Pulled off hundreds of dangerous stunts with the animals he loved. But it was a sting ray that took his life. Irwin was just 44 years old. He was filming an underwater documentary when a sting ray barb pierced his chest and struck his heart. We get more on his career from Alex Smith of Australia's Channel 9.
(BEGIN VIDEOTAPE)

ALEX SMITH, CNN CORRESPONDENT, (voice over): Steve Irwin was more than extraordinary. He was an international phenomenon.

STEVE IRWIN: I can't stop, mate. I'm on fire. I wake up in the morning and I'm on fire. I just can't do enough.

SMITH: And the world couldn't get enough. Long before he was a household name at home, he was star of the week on U.S. television.

UNIDENTIFIED MALE: The Irwins are the real crocodile dundees of Queensland in Australia.

SMITH: It all started at his parent's Australian zoo on the sunshine coast. That grounding, and his boots and all approach.

IRWIN: Pull push. Pull push. Go, go go.

SMITH: And that trademark style.

IRWIN: Crocky (ph), that's the biggest crocodile upheaval in Australia zoo's history.

SMITH: Made Steve Irwin and one Australia's most successful exports.

IRWIN: I want you in there with me, Charlie, mate, all right. You're coming in with me.

SMITH: Even Hollywood beckoned.

IRWIN: There you're going, mate.

SMITH: But along with wife Terry, and their two children, Steve's heart was never far from the Ausi bush and his beloved Australia zoo. There were controversies along the way. IRWIN: Watch his eyes. Watch his feet.

SMITH: But no controversy could shake his self belief.

IRWIN: Life is all about big peaks and troughs and trying to keep a nice level, happy playing field and surround yourself with your family.

SMITH: He leaves behind a massive nature conservation project funded by his multimillion dollar empire. But perhaps his greatest legacy will be to encourage others to follow their dreams.

IRWIN: I am the proudest Australian bloke on the face of the earth.

(END VIDEOTAPE)

M. O'BRIEN: That report from Alex Smith, Australia's Channel 9.

Apparently Irwin went into cardiac arrest when he was stung by the ray which was swimming over. His crew called for a medivac but it took about a half hour for them to get there. By that time he was dead. In just a little while we'll speak with one of the producer who was on that shoot scene off the northeast coast of Australia.

Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Oh, it sounds just horrifying, doesn't it, they rushed to get him to safety.

Let's get you right to a developing story this morning. Tourists visiting Amman, Jordan, became targets today when two gunmen opened fire. Jordanian officials say that one British tourist is dead. And CNN's confirmed among the wounded another British citizen, two Australians and one Dutch citizen. Also a tour guide of unknown nationality is said to have been injured in the attack. Let's get right to Luna Madi. She joins us by phone.

Luna, good morning. What's the latest that you know from here?

LUNA MADI, CNN CORRESPONDENT: Good morning.

Well the latest so far is that there have been seven casualties. One of them dead, which is a British tourist. Two other British were injured. One Australian injured. One New Zealander injured and a Dutch, also, national injured.

The guide that was with them was the police tourist guide and he was injured and Jordanian nationality. And this was just stated in the press conference that was held by the government spokesperson, Nasr Judan (ph).

S. O'BRIEN: Do we know any details about this group? Is there any particular reason, Luna, why they would be targeted or does it seem to be a random attack against a group of foreign tourists? MADI: So far, so far, I mean, this is really not confirmed. Nothing is clear with regards to this so far. However, the arrested gunman has been confirmed to be of Jordanian nationality. They are still investigating to see whether he has collaborators or not. If it was a one-off (ph) incident possibly caused by the situation around or if it was part of a group and more planned attacks.

S. O'BRIEN: All right. So that contradicts some of the information we've seen in other published reports that there were two gunmen and also some published reports said that the gunmen who was arrested was an Iraqi. Are you saying that in the latest press conference they've actually changed those two things or updated them.

MADI: Yes. Yes. In the press conference they've confirmed that he is a Jordanian national. Prior to that, before the press conference was held, there was talk of unconfirmed reports about the nationalities, of the possibility of them being Iraqis. However, so far, as of the latest information, it's a Jordanian gunman that has been arrested. Whether he has others that were part of this incident today or not is yet to be confirmed and is being researched as we speak now by the government and the police force.

S. O'BRIEN: All right. Thanks very much, Luna, for the update there. We'll continue, obviously, to update you as we get more information. But some new information coming to us this morning. In Iraq, there's been a blow against the terrorist network. This morning, the man who was considered to be al Qaeda in Iraq's number two is in custody. His name is Hamed Jumaa al Saeedi. He goes by various other names as well, including Abu Rana and also Abu Humam. CNN's Michael Holmes is in Baghdad for us this morning.

Michael, good morning.

Who is this guy? What do we know about him?

MICHAEL HOLMES, CNN CORRESPONDENT: Yes, good morning to you, Soledad.

Well, we know that he's an Iraqi and we know that he was very much wanted by the Iraqi government. He is the deputy to Abu Ayyub al-Masri, who himself took over al Qaeda in Iraq after U.S. troops killed their leader, Abu Musab al-Zarqawi. Remember that happened back in June.

Now according to the country's national security advisor, Mouwafak al-Rubaie, this arrest happened a couple of days ago in a private home where he says that this man was sheltering with three other al Qaeda members. And they were among other civilians. He said that no casualties were caused in the arrest.

Now, why is he important? Here's part of the news conference.

(BEGIN VIDEO CLIP)

MAUWAFFAK AL-RUBAIE, IRAQI NATIONAL SECURITY ADVISER, (through translator): He is the one who is directly responsible for the criminal Haitham al-Badri, the mastermind and the bomber of the Samarra shrine. He has implemented the policy of al Qaeda in Iraq and the orders of Abu Musab al-Zarqawi in triggering sectarian sedition and violence in Iraq between Sunnis and Shiites.

(END VIDEO CLIP)

HOLMES: Now the bombing of that shrine wasn't -- it wasn't just any bombing, Soledad. This was a very holy place for Shia Muslims. And the bombing of the shrine back in February really was the seed that kicked off the sectarian violence that we've seen so much in this country. In particular, Baghdad.

Soledad.

S. O'BRIEN: Michael Holmes for us this morning. Michael's in Baghdad for us.

Thanks, Michael.

Miles.

M. O'BRIEN: One of the largest manhunts in New York state history continues this morning. Authorities looking for the man who shot two state troopers. One of whom died yesterday. Thirty-two- year-old Joseph Longobardo never regained consciousness. The other trooper is doing a little better this morning. Mary Friona from our affiliate WGRZ joining us from Fredonia, New York, with more.

Mary.

MARY FRIONA, CNN CORRESPONDENT: Well, good morning, Miles.

That's right, 32-year-old Joseph Longobardo has died and the search here has become massive. In fact, like you mentioned, the largest in state history and the most complicated. Now the prime suspect, like you mentioned, is fugitive Ralph "Bucky" Phillips. He's been on the run ever since April when he escaped from an Erie County jail.

Phillips is suspected also of shooting another state trooper in June. That trooper has recovered and is back on the job. But ever since that shooting, the search has continued.

Several people have been arrested, charged with helping Phillips allude the law. And since the shooting Thursday night, his girlfriend, who had been released on bail, her bail was revoked and she is now back behind bars. The shooting happened just outside of her home.

And again, one trooper has passed away. The other, he was in critical condition, Donald Baker Jr. (ph), but he has now been upgraded to serious condition. But the search has intensified.

There are roadblocks set up all over this area, which is a heavily wooded area about one hour south of the Buffalo area. And departments from all over the country, including Canada, have offered their services. A $250,000 reward is being offered for any information leading to the capture of Ralph "Bucky" Phillips.

Miles.

M. O'BRIEN: Mary, given the size of this search, do we know how he's been able to allude authorities? Is he getting help, in other words, from people in that area?

FRIONA: Yes, unfortunately, according to state police officials, they believe he has been getting an awful lot of help. Also it's a heavily wooded area. He grew up in this area. He's very familiar with it. And a lot of the state troopers that have come in and helped out with the search are from other areas, so they're not familiar with this particular area. So they say those are the two main reasons. But again, they say, if you even attempt to help Phillips right now you will be arrested and prosecuted.

Miles.

M. O'BRIEN: Not to mention the danger there. Mary Friona from our affiliate WGRZ. Thank you very much.

Let's get a check of the forecast. Chad Myers at the CNN Center with more.

Good morning, Chad.

(WEATHER REPORT)

S. O'BRIEN: It is game over for one of the most popular and charismatic tennis players of all time. Andre Agassi is who we're talking about, of course. He is an eight-time grand slam champion and he ended his career with an emotional good-bye at the U.S. Open yesterday. As CNN's Larry Smith reports, it really marked the end of an era.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN CORRESPONDENT, (voice over): A gimpy Andre Agassi, tearfully succumb to father time on Sunday, losing his third round match at the U.S. Open to a 25-year-old opponent who idolized him as a child and then joined the legion of Agassi fans to say good- bye.

ANDRE AGASSI, EIGHT TIME GRAND SLAM CHAMPION: Just overwhelming with how they embraced me at the end and, you know, they saw me through my career and they've seen me through -- seen me through this, as well.

SMITH: Agassi walks away a legend. Not just an eight-time major winner and one of only five men to complete the career grand slam, but someone who morphed into a sports icon along the way. He was once a precocious phenom who blazed a trail through the game to the tune of image is everything.

ANDY RODDICK, U.S. TENNIS PLAYER: But I think what makes him so different is just his crossover appeal. He was able to take tennis to a totally different demographic. Create interest in tennis at all times.

JAMES BLAKE, U.S. TENNIS PLAYER: We all owe a little debt of gratitude for what he's done for the sport. Yes, he's transcended the sport to become an international super star more so than any other tennis player of the last 20 years probably.

SMITH: Later, Agassi discovered that substance is better. He rebounded from dropping out of the top 100. And from his divorce from his first wife, actress Brooke Shields, to reclaim the number one ranking in 1999. Later becoming the only man to hold the top ranking in three different decades. Off the court, the eighth grade dropout received his high school diploma through correspondence courses. His foundation has started a charter school in his hometown of Las Vegas.

CHRIS EVERT, FORMER TENNIS CHAMP: He got older and he started using his head out there on the tennis court and started really training harder. Married Stephi Graf. You know, he has two kids now and he has a great foundation. He really gives back a lot to society.

RODDICK: I don't think we've seen his greatest accomplishment yet. And that's a big statement considering what he's accomplished already.

SMITH: And that may have little to do with tennis. A good-bye to his playing days, Agassi says hello to tomorrow. And whatever lies ahead.

AGASSI: I'm going to wake up tomorrow and start with not caring how I feel. That's going to feel great. And then -- I'm imagining for a long time anytime somebody asked me to do something I'm going to go, sure. Why not.

SMITH: Larry Smith, CNN, Atlanta.

(END VIDEOTAPE)

S. O'BRIEN: Why not. You're retired now. Aside from winning all four mayor championships, Agassi retires with more than 60 titles and more than $30 million in career earnings. Good for him.

M. O'BRIEN: So he doesn't really have to worry about working, does he?

S. O'BRIEN: No, no. Retired. Really retired.

M. O'BRIEN: With a capital r. All right. Well, best to him and his family.

Coming up on the program, opening day for the political season. Good chance this will be a midterm election to remember. An awful lot at stake. We'll show you which races are worth watching.

S. O'BRIEN: Also, Iraq's former president says American Muslims may hold the key to piece. We'll have an exclusive interview with Mohammad Khatami just ahead. M. O'BRIEN: And a drug bust with a twist. The FBI goes undercover and ensnares three Boston cops. We have the tape ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Happening thing morning.

East of Kabul, Afghanistan, a suicide bomber has blown himself up with a car bomb, taking four other lives as well. The bomb went off near a convoy of foreign troops.

And fighting near Kandahar, Afghanistan. Four Canadian NATO troops were killed, nine others injured, when NATO war planes accidentally shot at their own men. It took place during Operation Medusa. A three-day old offensive against the Taliban.

The Gulf state of Qatar has committed troops to Lebanon and now they are the first Arab country to join the U.N. peacekeeping forces there. Qatar's going to send between 200 and 300 troops.

On this Labor Day, President Bush heads to a war maritime training center in Maryland to talk up the economy. CNN's Kathleen Koch is at the White House this morning with a little preview of that speech.

Hey, Kathleen, good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Soledad.

You know, Labor Day may mark the last weekend of summer for some, but those in politics, it certainly does rather, though, mark the beginning of fall campaign season. And both parties do expect that the economy will be a major issue on voters' minds. Though, as you pointed out, the president will head to Pine Point, Maryland, later this morning to tout what he sees as positive developments in the economy.

The president will point to unemployment numbers. They fell slightly in the month of August, down to 4.7 percent. That suggesting that the U.S. economy is still creating jobs.

The president will talk about some 36 straight months of job growth while he has been in office. And in his speech, again, he is expected to claim credit for that. Saying that it is his economic policies which have created this growth which are working.

But Democrats and the labor unions, they see a different picture. They point to a decline in wages. The Census Bureau last week reported that workers' earnings fell last year as median household income rose for the first time since 1999. And Democrats say that that suggests that family members are working more jobs for less pay in order to make ends meet.

Obviously the question really is, how do the voters see all this? That is what really counts. And both parties are expected to drive home their view of the economy as the campaign season heats up.

Soledad.

S. O'BRIEN: We're going to watch it. Kathleen Koch for us at the White House.

Thanks, Kathleen.

CNN's going to have live coverage of the president's comments on the economy. We're expecting that later this morning at 11:50 a.m. Eastern Time.

Miles.

M. O'BRIEN: The midterm elections just nine weeks away. Balance of power at stake. There's an awful lot to watch. This is the place to do it. There's one race in the Chicago area that could offer a snapshot of the bigger political landscape. CNN congressional correspondent Dana Bash live now from Wheaton, Illinois, with more.

Dana.

DANA BASH, CNN CORRESPONDENT: Good morning, Miles.

You know, for Democrats to wrestle control of Congress from Republican on Election Day, 63 days from now, this is exactly the kind of suburban area they're going to have to win. Republican Congressman Henry Hyde represented this district just outside Chicago for more than three decades. But right now the race to replace him is a toss- up.

(BEGIN VIDEOTAPE)

BASH, (voice over): It's a typical weekend in a textbook American suburb. High school football. Visit the stands, full of Republican parents, and frustration with Washington this election year is palpable.

DEBORAH, REGISTERED REPUBLICAN: I'm a registered Republican, but I will definitely vote for change and probably vote Democrat because that's change.

PETER ROSKAM, (R) CONGRESSIONAL CANDIDATE: Good to see you guys today.

BASH: That's a problem for Republican Peter Roskam in this GOP stronghold outside Chicago.

ROSKAM: Hi. How are you? I'm Senator Peter Roskam running for Congress. It's nice to see you today.

BASH: In any other year, he would likely be a shoe-in. But this is not any other year. His pitch combines classic suburban issues like tax cuts with one of this year's hot topics, immigration. ROSKAM: Secure our borders with stronger enforcement, oppose amnesty, oppose taxpayer subsidized healthcare for illegals. That's the last one, man. And that ain't complicated.

BASH: And while Democrats are trying to nationalize this election, seize on voter discontent in Washington, Peter Roskam is following the Republican playbook by trying to focus on issues close to home. Like promising to bring federal dollars back to fix this dangerous intersection.

ROSKAM: I'm known within this community and I've been an advocate for the types of thing that I think resonate within the sixth district.

BASH: But keeping all politics local isn't easy when your opponent is Iraq War vet Tammy Duckworth.

TAMMY DUCKWORTH, (D) CONGRESSIONAL CANDIDATE: When I talk about securing us here at home, it's because I'm actually doing that work in real life. It's not a theory. It's not something that the national party tells me. It's firsthand experience.

BASH: Democrats recruited Duckworth, a political novice, because of her national security creds and compelling story. She lost both legs when the helicopter she was piloting was shot down in Iraq. A war she calls a mistake.

DUCKWORTH: I absolutely support going after those terrorists. But I think by invading Iraq, we completely distracted ourselves.

BASH: She says she has seen up close what Democrats call administration misjudgements and mismanagement.

DUCKWORTH: I ate steak and lobster every Sunday night in Iraq, but I didn't have enough armor for the tanker trucks that carried 5,000 gallons of aviation fuel.

BASH: Accountability and fresh thinking are her themes. A combination she calls a perfect fit for a fed up electorate.

Back at the football game, Tom Fendly says Duckworth's inexperience in politics means she's not ready for Congress, but he's disappointed with his party and thinks voters should send them a message on Election Day.

TOM FENDLY, REGISTERED REPUBLICAN: I'm in the school of shaking things up. I believe a lot of Americans are disillusioned right now with the whole political process.

(END VIDEOTAPE)

BASH: And there is voter frustration with both parties, politicians in Washington on both sides of the aisle. And what's striking, Miles, is how the candidate here are trying to strike their independence from their party leaders back in Washington. Make it clear that if they go to Washington, they will have their own voice. Miles.

M. O'BRIEN: Dana Bash in Illinois, thank you very much.

Coming up on the program, an NFL linebacker shot by an off duty police officer. We'll tell you who and why.

And a FBI drug sting nets some suspects who normally wear blue. It's a big black eye for Boston police. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: A CNN exclusive this morning. The former president of Iran is in the United States. Mohammad Khatami says U.S. foreign policy is triggering terrorism and violence around the world. CNN's Zain Verjee spoke exclusively with the former Iranian president. She's in Chicago this morning.

Hey, Zain, good morning.

ZAIN VERJEE, CNN CORRESPONDENT: Hey, Soledad. Good morning. How are you?

Yes, we spoke to a former Iranian president, Mohammad Khatami, who, as you say, is in the U.S. on a private visit. We spoke to him last night for about an hour. He called the United States a great nation. But he also was extremely critical of U.S. foreign policy in the region. He said, look, it's essentially been counter productive and it has incited violence and extremism in the region. He had this message for the White House.

(BEGIN VIDEO CLIP)

VERJEE: If you had an opportunity to sit down with President Bush, what is the one thing you would tell him today?

MOHAMMAD KHATAMI, FORMER IRANIAN PRESIDENT, (through translator): I would tell him that the United States, with all of its might and resources, can side by side with the good people of the Middle East bring about a new experience in the creation of democracy and the advancement of democracy even though the way to democracy may have been slow originating in the Middle East.

And with the change in the language from going to a language of threats, to switching to a language of reapproachment and understanding of mutual understanding, the United States can have a better position in the region. And, quite frankly, I would tell them that the policies that the United States has chosen, unfortunately, has brought about the wrong sentiment towards the United States and has only increased and will only increase extremism in our region.

(END VIDEO CLIP)

VERJEE: President Khatami is not going to be meeting with any U.S. officials on this trip. As I say, it's just a private trip. He said to me that he's enjoying it, just being a civilian and meeting scholars and students. He's on his way to New York and to Washington next.

Soledad.

S. O'BRIEN: Well, did he say anything about Iran's nuclear program, which, of course, is really what we're been talking about over the last not only weeks but months as well.

VERJEE: Yes, he did. We got into that actually, Soledad, quite extensively. As you know, the U.S. has been concerned that Iran is using its nuclear program essentially as a cover to build a nuclear bomb. President Khatami said to me that Iran's intentions with its nuclear program are essentially peaceful and he insists that it's only all about electricity.

(BEGIN VIDEO CLIP)

VERJEE: Is Iran pursuing a nuclear bomb?

KHATAMI: I think these questions have been answered enough times by the supreme leadership of the Islamic republic of Iran. And it has never been the policy, nor the mindset, of any branch of the Iranian government to pursue atomic weapons which can be the source of vast numerous deaths in the world. We have no interest in building such weapons. What is the question here is that the technology that we want to use, which is the nuclear civilian technology, according to the NPT is our right.

(END VIDEO CLIP)

VERJEE: President Khatami, Soledad, was also very insistent that Iran, over the years, has cooperated and been open with the International Atomic Energy Agency and its nuclear program.

S. O'BRIEN: Zain Verjee for us with an exclusive. You can catch Zain's full, exclusive interview with the former Iranian president this afternoon on "The Situation Room." It starts at 4:00 p.m. Eastern Time.

Thanks, Zain.

Miles.

M. O'BRIEN: Still to come on the program, a shocker this morning. The crocodile hunter, Steve Irwin, dead after being stung by a sting ray. We'll talk with someone who was there.

Plus, the remnants of Ernesto. We'll show you what the first Atlantic hurricane of the season left behind.

And this in Nevada. As they say, any landing you can walk away from is a good one. Well, this landing technically qualifies. We'll have details ahead on this AMERICAN MORNING.

(COMMERCIAL BREAK)

SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back everybody. I'm Soledad O'Brien.

MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien. Thanks for being with us.

The crocodile hunter is dead. Steve Irwin, a TV and movie icon known the world over for his death defying encounters with wild animals was stung by a stingray. The razor sharp tail of that ray pierced his chest. Friend and colleague John Stainton was aboard Irwin's boat Croc One at the time of the accident, he joins us now on the phone from Cairns, Australia. Glad to have you with us but we send our condolences. How is everybody doing?

JOHN STAINTON, IRWIN'S PRODUCER/DIRECTOR: It's been a very bad day Miles as you can imagine. It's something that has just come out of the blue and shocked probably not just ourselves but the whole of Australia, and from what I gather, the world is probably reeling from the events that happened today.

M. O'BRIEN: Yeah, the world over, literally. Tell us about the circumstances. What was going on at the time that he was hurt by that stingray?

STAINTON: Miles, we were currently -- we're in the Great Barrier Reef area off a town called Port Douglas. We've been here for a week, filming a new television program for "Animal Planet" with Phillip Cousteau, who's the grandson of Jacques Cousteau, who'd teamed up with Steve to do a program called "The Ocean's Deadliest", ironically. And it was looking at all the things in a positive way, living in the ocean, that have potential dangers and harm attached to them but for what reason, we had researchers on board. And, this morning, because the weather had been quite bad for us the last couple of days and we hadn't been able to film, Steve decided that he would like to shoot a couple of soft stories for a new TV show we're doing with his daughter Bindy. So he and the underwater cameraman went out to do some pieces on the reef on -- on the reef and coral and stuff that would be good for the kids' show and unfortunately, he came on of the top of a stingray that was buried in the sand and the barb went up and hit him in the chest.

M. O'BRIEN: So this wasn't even the primary focus of the documentary on the most dangerous -

STAINTON: It wasn't, no. It wasn't the primary focus of the documentary at all. It was something that was sideline to the whole thing, which is why we're in shock about it because it just had nothing to do with the program we were making.

M. O'BRIEN: Tell us what happened after that. How quickly was he out of the water? How quickly did he get some medical care?

STAINTON: He was out of the water within a couple of minutes. We had him back on Croc One. We had to rendezvous with an emergency helicopter on an island, it was the only place they could land and that was 30 minutes away. So obviously, you can imagine it was a desperate effort to save him that ensued for the next 30 minutes to get him to the island for the Medivac, but unfortunately, when we got him to the island, it was too late.

M. O'BRIEN: Was he conscious at all through this?

STAINTON: No.

M. O'BRIEN: And was it -- did he succumb to the sting itself or the piercing and stabbing? Do you know?

STAINTON: You know, I don't know. I don't know. Those things will probably come out in the next 24 hours. I don't know.

M. O'BRIEN: All right, John Stainton, best to you all, our condolences here, the whole world feeling this loss. Thank you for your time.

S. O'BRIEN: Oh, terrible, terrible story there.

M. O'BRIEN: Soledad?

S. O'BRIEN: Shocking really.

Let's turn to Iraq now where two marines were killed yesterday in Anbar province west of Baghdad. CNN's Michael Ware is embedded with American forces in Ramadi. He says Al Qaeda operatives and other insurgents are not letting up in their attacks. Hey Michael, good morning. Tell us a little bit about what it's like for the troops there who you're with?

MICHAEL WARE, CNN CORRESPONDENT: Well Soledad, this very much is the cheap end of the not just the war in Iraq but the war against Al Qaeda. Here in Ramadi, in Alanbar province, the very same place where the two marines have died in the past three days, we are standing at a marine base. This site here is dominated by Al Qaeda. Local insurgent groups have been hijacked and are being led and are being intimidated and forced down the Al Qaeda line. So this is literally where marines and soldiers come face to face with Al Qaeda on a daily basis. Now, we visited the soldiers and marines in the city of Ramadi in these combat outposts. Small, little, like little forward apaches deep inside Al Qaeda territory. In these places living is tough. These kids, some of them are lucky if they see a shower once every couple of a weeks. They get a lukewarm meal once a day. They burn their own refuse. They burn their own human waste. These kids are working on three hours on, three hours off shifts and they're fighting almost every day. Just earlier from here this morning a platoon, a convoy went out they came back with three guys wounded. They're all going to be ok but their vehicle is damaged and three of them were slightly wounded. Here in Ramadi on this Al Qaeda front line, the brigades are suffering on average 100 killed in action every year. And there's one particular battalion of marines here, 38 battalion, they've suffered 17 killed in action in seven months. Now that's 5 or 600 men when some brigades of 5,000 don't suffer that many losses in a year. Soledad?

S. O'BRIEN: Well it's amazing. Michael Ware for us this morning. Thanks Michael. Turning to Afghanistan now, four civilians and a British soldier were killed today by a bomb in Kabul. Also, NATO war planes killed a Canadian soldier in a friendly fire incident and there's growing concern about increased opium cultivation in the southern part of Afghanistan. CNN terrorism analyst Peter Bergen is in Kabul this morning. Peter, good morning to you. It seems that in the last year, the security situation in the region is unraveling and that has a lot to do, doesn't it, with the opium production?

PETER BERGEN, CNN TERRORISM ANALYST: Yeah, well, I mean, there's a lot of indicators that things are not going well. The suicide attack here in Kabul this morning was either the 43rd or 44th suicide attack in Afghanistan this year. And what's interesting about that Soledad is that suicide attacks were really not a feature at all of life in Afghanistan. In 2001 there was one suicide attack. And if you chart the graph between 2001 and 2006, it's rising geometrically. By the end of this year at present rates, we'll have at least 60 suicide attacks in a country that really didn't have this before. And it's really, I think, Al Qaeda is partly responsible, the Taliban is certainly responsible. And, it's creating a lot of fear. I think for ordinary Afghans, Kabul, there have been a number of attacks, Kandahar in the south, the other big city. And it makes reconstruction very difficult in the south. It makes much of the south a no-go area for foreigners and increasingly now it comes to the capital.

S. O'BRIEN: What's the reason that the Taliban is getting -- it sounds like consistently, more entrenched and even stronger?

BERGEN: Well, I mean, it's complicated but I think it can be summed up in part in one word which is Pakistan. The Taliban have really regrouped in Pakistan according to a wide range of U.S. military officials I have spoken to in the last few weeks. The top leadership is in Pakistan. The Taliban have two important councils, one is called the (INAUDIBLE), which is in a province of (INAUDIBLE) in Pakistan. The other one is the (INAUDIBLE) which is in the northwest frontier province of Pakistan. And so over the last few years, the Taliban have regrouped, re-supplied themselves, they're also benefiting from the drug trade and also apparently from contributions from Middle Eastern donors according to U.S. military officials I have spoken to. And they're probably also benefiting to some degree from the fact that there is a widespread feeling around the country that the Karzai government hasn't really delivered as much as was promised or at least the international community, also. And so all those factors together have brought the Taliban back. But while they're more than a nuisance, Soledad they remain, I don't think they're a strategic threat to the Karzai government for the moment. They remain more of a tactical problem. And just this weekend, NATO says that it killed 200 Taliban in a fairly major operation in the south of Afghanistan. So, while they are certainly back, they're also taking some pretty heavy casualties when they meet either U.S. military or NATO in sort of fixed engagements. Soledad?

S. O'BRIEN: Peter Bergen is in Afghanistan, in Kabul, Afghanistan for us this morning. Thank you, Peter. Appreciate it. Miles? M. O'BRIEN: Happening in America. In Chicago, fire has taken the lives of six children, four boys and two girls. The apartment was without electricity. Lit candles apparently the cause. The children's mother and three more of her children were hospitalized.

In south central Montana at this hour, wildfires continue to threaten homes and property around the town of Big Timber. Winds picked up overnight. Flames have already consumed more than 180,000 acres and burned more than two dozen homes.

Natalie Connally's funeral service will be held Wednesday in the same church in Austin, Texas where she and her husband John were married in 1940. In 1963, the Connally's rode with President Kennedy and the first lady in Dallas. Natalie Connally said she had just told JFK you certainly can't say that Dallas doesn't love you when the shots rang out.

Lots of questions this morning surrounding the shooting death -- excuse me, the police shooting of the San Diego Chargers' Steve Foley, his wounds not considered life threatening. Foley was shot by an off duty police officer early Sunday. The officer told investigators Foley was weaving in lanes, at between 30 and 90 miles an hour. San Diego Sheriff's Department says no charges have been filed yet.

Detroit's striking public school teachers being told to report to work Tuesday when students will have a half day of classes. A judge has ordered around the clock talks to end the week old walkout. The judge wants both sides in court Tuesday if a deal isn't reached.

North of Reno, Nevada, here's a sight, a plane lifted from a home. Two men flying to the Burning Man Festival in Black Rock Desert landing at this place, missed the Spanish Springs public airport runway, instead, ended up in the home. Both men escaped injury. And no one hurt in the house either.

The countdown for Wednesday's launch of the space shuttle "Atlantis" underway. Atlantis will carry trusses and solar panels to help complete construction of the International Space Station, long delayed now. The liftoff for Wednesday slated for 12:29 p.m. eastern time. And in New Jersey, cleanup goes on this morning after the remnants of tropical storm Ernesto soaked the state. In some spots, more than two inches of rain fell, strong winds knocked down trees and power lines causing power outages that affected thousands, still affecting this morning.

(WEATHER REPORT)

S. O'BRIEN: As we celebrate Labor Day by laboring, we're going to tell you about some of Boston's finest, they're in trouble. A major corruption case got some key evidence caught on tape. Details coming up next. Stay with us.

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M. O'BRIEN: A two year old criminal investigation has uncovered something big in Boston and the shocking evidence was captured on videotape. As AMERICAN MORNING's Dan Lothian tells us, the three suspects are members of Boston's finest.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): It's a corruption scandal that's rocked the Boston Police Department. Three veteran officers sworn to uphold the law are now accused of breaking it. Key evidence caught on videotape.

UNIDENTIFIED MALE: I'll have the cash for you guys tomorrow.

MICHAEL SULLIVAN, U.S. ATTORNEY: It's always a somber moment when it becomes necessary to arrest and prosecute a member of law enforcement who has abused his authority and crossed the line from crime fighter to criminal.

LOTHIAN: 41-year-old Roberto Pulido, 36-year-old Carlos Pazarro and 35-year-old Nelson Carrasquillo, allegedly guarded a shipment to Boston of what the trio thought was 100 kilos of cocaine.

(on camera): It was all part of a sting. Undercover FBI agents posing as dealers were rolling cameras in Florida in July where they had all allegedly gone to celebrate the deal and when the suspects were to be paid, in all, $50,000.

(voice-over): In the tape, the man identified by authorities as Carrasquillo, indicates he wants to keep a low profile and a tight grip of who gets in on future drug deals. In another tape, authorities say Officer Pazarro sits and listens as an undercover agent and Pulido are heard off camera talking about other deals, past and future. And the three officers charged and arrested last month are allegedly receptive to protecting shipments of other drugs.

The Boston Police Department was quick to condemn the alleged actions of three officers and to defend its force.

ALBERT GOSLIN, ACTING POLICE COMMISSIONER: 99 percent of our people are quality hard working, honest officers.

LOTHIAN: But criminal justice experts like Northeastern University's Jack McDevitt say in general police scandals can taint the reputations of good cops.

JACK MCDEVITT, ASSOC. DEAN, NORTHEASTERN UNIVERSITY: And it really can destroy the trust that years and years have been built up between a police department and the community.

LOTHIAN: All three officers maintain their innocence. Jeffrey Denner, Pazarro's attorney says there may be much more to this case than meets the eye.

JEFFREY DENNER, DEFENSE ATTORNEY: Then we need to understand the whole context of this case. How it happened? What is there behind the videotape?

LOTHIAN: If convicted, the three officers with a total of 27 years on the force each face a maximum sentence of life behind bars and a $4 million fine. Dan Lothian, CNN, Boston.

(END OF VIDEOTAPE)

M. O'BRIEN: Pulido is also accused of identity theft, hosting illegal sex parties, insurance fraud and smuggling illegal immigrants.

Coming up, Andy, "Minding your Business."

Plus, consumer reports, money saving tips you might not have thought about that can help you stretch your dollar when you go to the market. Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Well, Labor Day marks the end of summer but for many businesses it means just the beginning of the year, really. Andy Serwer "Minding your Business" with more on that. Hello Andy.

ANDY SERWER: Hello Miles. You think about Labor Day kicking off the year and obviously you think about school and the back to school biz and everything that goes on there. But there's a lot of other businesses that sort of kickoff their year with Labor Day and heading into the fall season. Obviously, TV shows, and TV season begins. A little bit less than it used to be, now it's sort of spread out throughout the year, but it's still the big fall season kickoff. Magazine publishing, when you think about the business that I come from. The big fall issues, the fashion issues with the Vogues and the Cosmos, those are the big fat ones. And then also when you think about sports, football, which is of course the kind of ruling sport of America these days. That obviously is a big, big deal and also for the TV networks, as well. Retailing and fashion is another one, Miles. It sort of fits in, as well. As they head in to the obviously all important Christmas season. And you know, of course Christmas gets pushed back two weeks every year anyway. So I don't know if you've done your Christmas shopping yet.

M. O'BRIEN: I probably know how many shopping days. I should do the work on that right now.

SERWER: That's about the speed of it.

M. O'BRIEN: In a way though, in this global economy we live in, it seems like almost a quaint notion that it's seasonal still but some businesses will always be that way I guess.

SERWER: Well I think that's right and you know there are some that's sort of no real reason. You think about the stock market and Wall Street. You know the traders and investors come back from their vacation homes and sort of really gear up to trade and the fall can be a very volatile month, September and October are notoriously bad months notoriously by some accounts. But you know what's very important as they head into the end of the year for those all- important bonuses.

M. O'BRIEN: Oh. SERWER: So you want to end the year on a high note if you work on Wall Street to make sure that you get $5 million instead of $3 million. Because what would you do with only a $3 million bonus?

M. O'BRIEN: How would you get by?

SERWER: I just don't know how they would get by.

M. O'BRIEN: All right, Andy Serwer, thanks very much.

SERWER: Thanks Miles.

M. O'BRIEN: Top stories after a short break. Stay with us.

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