Return to Transcripts main page

American Morning

'Crocodile Hunter' Killed by Stingray; Al Qaeda's Number Two in Iraq Behind Bars; Battle for Congress

Aired September 04, 2006 - 08:59   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: The "Crocodile Hunter," Steve Irwin, is dead. The daredevil Australian is killed while shooting a new show.
MILES O'BRIEN, CNN ANCHOR: A developing story out of the Mideast. A group of foreigners gunned down at a popular tourist spot in Jordan.

S. O'BRIEN: Ernesto's gone, but what the storm left behind still lingers. A Labor Day cleanup is now under way.

CHAD MYERS, CNN METEOROLOGIST: And I'm meteorologist Chad Myers in Atlanta. Tropical Depression number six now development. It could be and it's forecast to be Hurricane Florence by the end of the week. We'll have more on that coming up.

S. O'BRIEN: Good morning. Welcome back, everybody.

I'm Soledad O'Brien.

M. O'BRIEN: And I'm Miles O'Brien.

Thanks for being with us.

The "Crocodile Hunter," Steve Irwin, will be remembered as a conservationist who refused to enjoy nature from afar. Through the years he tangled with all kinds of wild animals that would send the rest of us running in the other direction. The result wags compelling, engaging and often nerve-racking.

Irwin was shooting a television show off the coast of Australia this morning when he was fatally stabbed by a stingray.

CNN's John Vause with more from Brisbane.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: Steve Irwin was filming part of a documentary which was being hosted by his young daughter, Bindi. She wasn't there at the time of the filming, but it's believed that Steve Irwin was in the waters just off the coast of north Queensland, not far from the tourist resort town of Port Douglas. That's just north of the major city of Cairns.

State police here say that Irwin collapsed after being attacked by a stingray. And according to some accounts, it appears that Irwin was swimming on top of the stingray, not very far from it at all, when it lashed out. And what may have happened, according to some reports, again, is that the tail of the stingray may have, in fact, lashed out and pierced Steve Irwin with one of these venomous barbs. And there is some speculation that one of those barbs, that venomous barb, may have in fact pierced his heart.

Now, there's still no official cause of death as yet. The body is being taken back to a morgue at Cairns Hospital. But it's believed that Irwin, in fact, went into cardiac arrest.

He was dragged on to a nearby boat by his crew. They administered CPR. There was a mad dash to take him to an island to rendezvous with a medevac team which had been sent out from Cairns. By the time they got there, about a 30-minute journey, about another 30 minutes later Steve Irwin was pronounced dead.

Now, marine experts say this kind of attack by a stingray is extremely uncommon. In fact, there have only been three recorded fatalities in Australian waters caused by stingray attack.

(END VIDEOTAPE)

M. O'BRIEN: Now, earlier I talked to one of Steve Irwin's good friend, producer John Stainton, who was on Irwin's boat, Croc One, at the time of the accident.

This is how he described what happened after the attack.

(BEGIN VIDEO CLIP)

JOHN STAINTON, IRWIN'S PRODUCER-DIRECTOR: He was out of the water, and within a couple of minutes we had him back on Croc One. We had to rendezvous with an emergency helicopter on an island, which was the only place that 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 medevac. But unfortunately, when we got him to the -- to the island it was too late.

(END VIDEO CLIP)

M. O'BRIEN: As you heard, Irwin was filming a story for a TV show that was supposed to star his daughter. Ironically, he was taking a break from filming his own show, a documentary called "The Ocean's Deadliest," that he was filming with Philippe Cousteau.

And be sure to tune in tonight for a special replay of "LARRY KING LIVE." Larry spent an hour talking with Steve Irwin back in 2004. You can see that interview tonight, 9:00 Eastern Time -- Soledad.

S. O'BRIEN: A developing story to get to right now. Tourists gunned down at a popular attraction in Amman, Jordan. Jordanian authorities say one British man is dead, four other tourists have been wounded. The bloodshed occurred at the site of the ancient Roman amphitheater, a major tourist attraction in the capital's old downtown.

Jordanian officials say the wounded tourists are British and Dutch and Australian and from New Zealand. The government says the lone gunman is now in custody.

The man Iraqi officials say was behind the bombing of a holy shrine in Samarra back in February is behind bars this morning. Hamed Jumaa Al Saeedi goes by various names, including Abu Rhana (ph) and Abu Humam (ph). Well, that bombing in Samarra, you'll remember, set off a wave of sectarian violence.

CNN's Michael Holmes is live for us in Baghdad this morning.

Michael, good morning.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Good morning, to you, Soledad. Yes, it was a very happy national security adviser, Mowaffak al-Rubaie, who held a news conference yesterday saying that this man, as you said, Hamed Jumaa Al Saeedi, had been arrested a few days earlier.

Now, he's been listed as the number two man in al Qaeda in Iraq, second to Abu Ayyub al-Masri, who himself took over al Qaeda in Iraq after the death of Abu Musab al-Zarqawi. That happened back in June.

Now, Mr. al-Rubaie said that the arrested subject had given plenty of information that had led to the arrest or killing of 20 other al Qaeda suspects. Now, what's significant about this man is that Mr. al-Rubaie asserts that he was responsible for the bombing of the Samarra shrine in February.

This was not just any bombing. This was a very holy place for Shia Muslims, and the bombing of it is blamed for sparking much of the major sectarian violence between Shia and Sunni that we've seen in Iraq. And, indeed, mainly in Baghdad in recent months -- Soledad.

S. O'BRIEN: Let me ask you a question about the impact to al Qaeda, Michael. What do you think this is going to mean to that organization?

HOLMES: Yes, it's a good question. And it's certainly worth addressing.

Let's remember that al Qaeda in Iraq is not a big organization. It's in fact a very small slice of the insurgent pie. However, it has been blamed for the spectacular bombings and most, in fact, of the suicide bombings that take place around here.

Let's remember that al Qaeda is a very cellular organization. It's broken up into a variety of different cells. And, in fact, the man arrested was said to have been operating several cells, but only in the area around Baquba.

We saw when al-Zarqawi was killed it was really just a speed bump rather than a major blow to al Qaeda in Iraq. And most, I think, observers would say that we won't expect that this is going to damage the group very much. They are set up to replace their leaders -- Soledad.

S. O'BRIEN: So maybe just another speed bump.

Michael Holmes for us this morning in Baghdad.

Michael, thanks -- Miles.

M. O'BRIEN: The midterm elections nine weeks away, and with the balance of power at stake an awful lot to watch, including 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.

Hello, Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Hi, Miles.

And, you know, for Democrats to wrestle control of Congress back from Republicans, it's exactly the areas like this, this suburban district that they are going to have to win. Republican Henry Hyde represented this suburban district just outside of Chicago for more than three decades, but right now the race to replace him is a tossup.

(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 a 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 shoo-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 tax health care for illegals.

UNIDENTIFIED MALE: Excellent.

ROSKAM: That's what I'm for, man. And that ain't complicated. BASH (on camera): 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 things that I think resonate within the six districts.

BASH (voice over): 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 what -- 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 call as 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 misjudgment 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 theme, 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 the Republican here, Peter Roskam, is trying to overcome that disillusionment, the same way other GOP candidates around the country are. He told us that he hopes come Election Day voters here realize that his name is on the ballot, not the president's -- Miles.

M. O'BRIEN: Dana Bash in Wheaton, Illinois.

Thank you very much. National security may be the top issue of the season, but the economy is sure to be a close second. And on this Labor Day, President Bush is expected to tell Americans the economy is strong.

The president will speak in Maryland in just about two and a half hours, and of course CNN will have live coverage of that speech -- 11:50 Eastern Time -- Soledad.

S. O'BRIEN: Happening this morning in Afghanistan, a car bomber took aim at a NATO military convoy in Kabul. At least four civilians killed in that morning bombing. Eight other people injured, including four NATO troops.

South in Kandahar province, a NATO offensive aimed at the Taliban has led to a so-called friendly fire death. A NATO war plane on a strafing run killed one NATO soldier and wounded several others.

The first Arab country committing troops to the U.N. force keeping force between Hezbollah and Israel is Qatar. It says it's going to send up to 300 troops to Lebanon. No word yet on when those troops are going to arrive.

One of the largest manhunts in New York State history is going on this morning. It's for Ralph "Bucky" Phillips. He's accused of shooting two state troopers last week. One of the shot troopers died on Sunday afternoon. The other officer has been upgraded from critical condition to serious condition.

Parts of northeastern North Carolina now drying up after Ernesto. The northeast Cape Fear River rose more than five feet above flood stage this weekend. More than 100 people were evacuated.

And the next tropical depression is on the map. Severe weather expert Chad Myers is keeping an eye on it.

Hey, Chad.

MYERS: Good morning, Soledad.

(WEATHER REPORT)

MYERS: Back to you.

M. O'BRIEN: Thank you very much, Chad.

Still to come on the program, more on the life of Steve Irwin. We will hear from Jack Hanna, who probably knows him as well as anyone. The impact Irwin had on efforts to protect wild animals.

S. O'BRIEN: Also, Tom Cruise has something else to say to Brooke Shields. Remember what he was talking about, postpartum depression, et cetera, et cetera?

M. O'BRIEN: Yes. Who could forget?

S. O'BRIEN: Well, this time it's in the shape of an apology. We'll tell you what he said.

M. O'BRIEN: And Andre Agassi hanging up his tennis shoes after an emotional U.S. Open ending. We'll tell you about it.

(COMMERCIAL BREAK)

M. O'BRIEN: The summer offensive in southern Afghanistan is grinding on. NATO forces taking aim at Taliban fighters in the south, where lawlessness and a bumper poppy crop is prompting new concerns about this front in the war on terror.

Gary Berntsen is a former CIA field commander in Afghanistan, author of the book "Jawbreaker: The Attack on bin Laden and al Qaeda."

He joins us now.

Gary, good to have you back on the program.

GARY BERNTSEN, FMR. CIA OFFICER: A pleasure to be with you, Miles.

M. O'BRIEN: I want to share with our viewers a brief snippet of what the U.N. commissioner involved in trying to -- interdicting drug activity had to say about what is going on in Afghanistan right now.

Antonio Maria Costa said this: "The southern part of Afghanistan was displaying the ominous hallmarks of incipient collapse with large- scale drug cultivation and trafficking, insurgency and terrorism, crime and corruption."

Told that the poppy harvest is up by 50 percent, even above the pre-1999 days before the invasion.

BERNTSEN: Right.

M. O'BRIEN: How could this possibly happen right under the noses of NATO and U.S. forces?

BERNTSEN: It is a huge problem. You're talking 6,000 tons of -- of opium. And it's -- it's a country that is lawless. Afghanistan is very large.

There's -- you're right, that's what's happening under people's noses, there are two million people involved in the industry, as well. It's huge.

M. O'BRIEN: And it's an important cash crop for people who don't have any other way of getting cash. One way to stop this is to find ways to get people other alternatives or just give them money somehow.

BERNTSEN: Right.

M. O'BRIEN: That hasn't worked so far. Why not?

BERNTSEN: No. Well, part of the problem, too, is the Taliban are involved in this. The Taliban are crossing the border. They're putting pressure on people.

They no longer have funding from the Saudis or support from Pakistan. So they are driving this, as well. And this is assisting them in re-establishing themselves in Afghanistan. This is a problem for the international community, not just the United States. And significant economic development is going to have to go back into Afghanistan.

M. O'BRIEN: Is it about economic development, or is it as simple as, should the troop just go in there and just start wiping out these poppy fields?

BERNTSEN: Well, you know, you can do eradication, but it's so easy to just replant someplace else. You don't need good soil for opium growth. And they can grow it anywhere in the country.

I mean, most of it right now is in the south. Helmand Province is the worst place. But they can grow it in places where U.S. forces are not.

M. O'BRIEN: And yet it does thrive here. If it's so hardy, you would think you would find it any other place. Ninety-two percent of the opium in the world, the heroin, comes from this place. It seems to me if it's that concentrated in one spot it's a real choke point that could be targeted and taken care of.

BERNTSEN: The problem, too, though, is that because of the terrible poverty there they don't want to sort of have complete economic collapse. I mean, it provides almost 50 percent of the -- of the -- of the cash. The ready cash for poor farmers.

M. O'BRIEN: So do you think that the Karzai government is turning a back to this or looking the other way because of that factor?

BERNTSEN: I don't think they're turning an eye on it. I think it's the governors attempting to insert influence against Karzai, because the karzai government is going to get international funds. These governors, local governors, are raising -- this is their money for themselves. And, you know, they use it for influence, they use it for their own political power, and then, of course, those in the south that may be cooperating with the Taliban have other intentions.

M. O'BRIEN: The question that is begged through all of this, are there enough boots on the ground there, NATO, U.S. troops, to get Afghanistan under control?

BERNTSEN: We need more boots on the ground and we need a lot more economic development there.

M. O'BRIEN: And specifically, what would you do?

BERNTSEN: Well, you know, wheat is the other, you know, crop there. So there's going to have to a lot more of that. But there's going to be -- have to be a lot of things on education, building, constructions, road projects. I mean, they need their own mini Marshall Plan in Afghanistan if we're going to save...

M. O'BRIEN: Is the U.S. properly focused on Afghanistan right now?

BERNTSEN: Well, clearly, our efforts in Iraq have drawn us out of Afghanistan. And it looks like Afghanistan is -- we're losing control there, clearly.

M. O'BRIEN: Are you optimistic this latest offensive, Medusa -- Operation Medusa, they are calling it -- will be successful?

BERNTSEN: Well, I'm sure they are going to be successful. But this is the only -- you know, this is like the third or fourth, you know, significant offensive in the last year. They have been doing this again and again. And it just shows -- and each time the numbers come back saying, you know, large losses of the Taliban. What this shows is that the Taliban is viable, it's funding itself, and it's operating, and we are in some danger there.

M. O'BRIEN: Alive and well nearly five years after 9/11.

BERNTSEN: Yes.

M. O'BRIEN: All right. Gary Berntsen, thank you very much.

Former CIA officer Gary Berntsen, author of "Jawbreaker."

Appreciate your time.

BERNTSEN: Thanks.

M. O'BRIEN: Soledad.

S. O'BRIEN: Ahead this morning, the American dream. Forget about the roads paved with gold. Are today's workers able to get by?

Plus, it's match point for Andre Agassi. We'll take a look back at his career when AMERICAN MORNING returns.

(COMMERCIAL BREAK)

S. O'BRIEN: Oh, it's game over for one of the most popular and charismatic tennis players of all time. We're talking about Andre Agassi, an eight-time Grand Slam champion. And he ended his career with an emotional goodbye at the U.S. Open yesterday.

As CNN's Larry Smith reports, it truly marks the end of an era.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN SPORTS CORRESPONDENT (voice-over): A gimpy Andre Agassi tearfully succumbed 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 goodbye. ANDRE AGASSI, RETIRED FROM TENNIS: It was overwhelming how they embraced me at the end and you know they saw me through my career and they've 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 because he's transcended the sport to become an international superstar 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 GREAT: He got older and he started using his head out there on the tennis court and started really training harder, married Steffi 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 has accomplished already.

SMITH: And that may have little to do with tennis. A goodbye 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 imaging for a long time any time somebody asks me to do something, I'm going to go, sure, why not.

SMITH: Larry Smith, CNN, Atlanta.

(END VIDEOTAPE)

S. O'BRIEN: Sure. Why not? Aside from winning all four major championships, Agassi retires with more than 60 titles, more than $30 million in career earnings.

M. O'BRIEN: And that...

S. O'BRIEN: Sure. Why not?

M. O'BRIEN: Why not? That doesn't even count endorsements.

S. O'BRIEN: No, right. Right.

M. O'BRIEN: Not bad.

S. O'BRIEN: Right.

M. O'BRIEN: Still to come on the program, living on the edge. "Crocodile Hunter" Steve Irwin killed on location in the midst of filming a project. We'll share some memories from Jack Hanna, his friend.

Also, a gunman targets Western tourists in Amman, Jordan. We'll have details on that.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Welcome back.

A beautiful day in New York City. We're told it's not going to last long. So enjoy it if you're in New York City. Fire up the barbecue, enjoy your Labor Day.

Good to have you with us.

I'm Miles O'Brien.

S. O'BRIEN: And I'm Soledad O'Brien.

We start with a very sad story this morning. Steve Irwin, the man who is probably better known as the "Crocodile Hunter," is dead. He was killed this morning while he was diving along the Great Barrier Reef in Australia. A TV icon, he was known really around the world for his death-defying encounters with wild animals.

(BEGIN VIDEOTAPE)

S. O'BRIEN: Joining us this morning to talk about Irwin's impact is another very well-known animal expert, Jack Hanna. He joins us by phone from Bigfork in Montana.

Jack, thanks for talking with us, especially on such a terrible, terrible occasion. I have to imagine that you'd want to send your condolences to the family members and the friends who are just shocked.

JACK HANNA, ANIMAL EXPERT: Yes, I really do. You know Steve and the family, Terry and all the kids. It's a tragic thing. It's unbelievable, really. You think about Steve Irwin you think of people that are invincible. You know it's just hard to believe it happened. S. O'BRIEN: It's shocking, you know at first I thought maybe he was shooting. I know he was shooting a documentary and I thought maybe he was shooting something about stingrays in this documentary. It's believed now that that stingray may have stabbed him. And maybe even punctured his heart. Turns out according to one of the guys he worked with, that wasn't the case. That he was actually shooting some kind of children's show in a break on the great barrier reef and this happened. I guess it just reiterates how dangerous all of this can be especially when you're dealing with someone who made it look so easy.

HANNA: You know Steve, you know, when I started my animal show there were two, now there's 29. And there's some guys who try to be Steve Irwin and you know there's only one Steve Irwin. The guy really lived his life this way. He filmed his zoo in Australia, filmed in the great barrier reef and Steve really knew what he was doing. He's one of the finest reptile people in the world. He knew about reptiles like nobody did and he was raised that way. So when you do that, you know obviously you know what you're doing. You know Steve was one of these guys, though, that loved to bring the animal world to us in a much closer way. And all of us have our own way of doing it.

And stingrays are not an animal by the way that really are aggressive, that come for you or anything else. They range from one foot to 10, 12 feet wide. And it sounds like this was a big one. And those barbs, you know if you step on them in the ocean then they sting you, that type of thing. But I mean there are a lot of places like the Columbus Zoo and other places that have touch tanks. Sea World has a great touch tank for stingrays and nothing ever happens and it's an unfortunate accident, you know. Who knows what was happening, what he was doing. I guess we'll know that in a few days. But that barb is big. Someone said the barb just actually went right through his chest, you know is what I've heard, too. So, it just -- that could be very deadly obviously if that happens.

S. O'BRIEN: That was Jack Hanna talking with us a little bit earlier this morning. Be sure to tune in tonight for a very special "LARRY KING LIVE" where we're playing Larry's interview with Steve Irwin which took place back in 2004. That comes your way tonight at 9:00 p.m. eastern.

For other stories making news this morning, Carol Costello has that. Good morning to you.

CAROL COSTELLO, CNN ANCHOR: Good morning, Soledad. Good morning to all of you. The capital of Jordan on high alert this morning. A gunman opened fire in downtown Amman killing at least one person, a British tourist. CNN has confirmed among the wounded two British citizens, one Australian, one New Zealander and one Dutch. Also injured a Jordanian tour guide, a suspect has apparently been taken into custody.

One of the largest manhunts in New York State history under way this morning. Authorities looking for the man who's suspected of shooting two state troopers last week. One of them died yesterday. The other trooper is doing a little better this morning. The escaped fugitive is Ralph "Bucky" Phillips, he's been on the run since April. In Illinois neighbors and friends are leaving bouquets of flowers and teddy bears under the charred windows of a gutted Chicago apartment. Six children died in an early morning fire here. Fire officials say the fire may have started by one of the candles the family was using for light. Their electricity had apparently been cut off.

The country's highest priority wildfires getting bigger. The two week old fire spreading across 180,000 acres in south central Montana. Dozens of homes destroyed, mandatory evacuations now under way.

And the east coast is starting to dry out from Ernesto. The storm flooded roads and left nearly 100,000 people without power this past weekend, including me. Some customers could be without lights until Wednesday. And Chad, that's what I did Sunday, cleaned up all the downed limbs in my yard. It was terrible.

(WEATHER REPORT)

M. O'BRIEN: More saber rattling from Iran as it holds firm against pressure from the west to dial down its nuclear aspirations. During some war games the country tested a so-called hawk surface to air missile. Testing comes as former Iranian president Mohammad Khatami visits the United States. CNN's Zain Verjee had an exclusive interview with the former Iranian leader. She joins us now from Chicago with a little excerpt of that. Hello Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Hi again Miles. We spoke to the former president Mohammad Khatami for about an hour last night and here is some of what he had to say.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Mohammad Khatami is the highest ranking Iranian to visit the United States since the 1979 revolution. He's not been invited to meet with any U.S. officials but he does have a message for President Bush.

MOHAMMAD KHATAMI, FORMER IRANIAN PRESIDENT: 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.

VERJEE: However he sharply criticized President Bush as well blaming him in part for the rise in terrorism.

KHATAMI: As a result of such wrong policies, such unilateral violent policies, that - the voice of logic decreased and the voice of terror, the attractiveness of terror unfortunately among the youth has increased.

VERJEE: Khatami flat out rejected accusations that Iran wants a nuclear bomb.

KHATAMI: And it has never been the policy or 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.

VERJEE: Khatami says President Bush's stance towards Iran has derailed relations that were beginning to thaw under President Clinton. And he insists dialogue between the two nations is the best hope for resolving the current deadlock.

KHATAMI: Through communication and negotiations the needed guarantees can be given to give assurances that we're not sure pursuing the atomic weapon.

VERJEE: The threat of war he says is only making things worse.

(on camera): Couldn't the deadlock if it does come to that over the nuclear issue lead to an attack on Iran? Do you worry about that?

KHATAMI: We are definitely worried and hopeful that such a thing will not take place, such attack will not take place. I think in all honestly the probability of such a thing taking place are very low. And I firmly believe that the only power that can undertake -- can take such steps is the United States and quite frankly I think the United States has caused itself enough problems in Iraq.

(END OF VIDEOTAPE)

VERJEE: Former President Khatami is going to be going to New York and to Washington next. He's going to be talking, Miles, less about a clash of civilizations and a lot more about dialogue among civilizations where he wants to promote a greater understanding between different cultures, different races, different faiths. All in order to promote a greater understanding that he hopes ultimately will lead to peace and security in the region. Miles?

M. O'BRIEN: Zain, he's certainly a more moderate influence than the current President Ahmadinejad. Does he offer any sort of criticism about the current president's rhetoric?

VERJEE: He didn't touch that. He basically supported the notion that Iran has a right to a nuclear program which is something that Mahmoud Ahmadinejad has consistently said that under the nuclear nonproliferation treaty Iran has a right to have a nuclear program. He also said that it's a peaceful program and essentially they want to pursue nuclear energy and not nuclear weapons as has been the perception. And Miles though, I will add that one thing that Mr. Khatami said in the interview yesterday, is he really strongly condemned extremism and violence of any kind. He said it was a crime. He said you know the Muslim leaders need to stand up and take a hard look at themselves, too, and really be the first to stand up to address issues of extremism in their own countries and in their own region.

M. O'BRIEN: All right. Well he can make that case about his own country certainly. Zain Verjee in Chicago. Thank you very much. You can see Zain's full exclusive interview with the former Iranian president this afternoon on "THE SITUATION ROOM," it begins at 4:00 eastern right here on CNN. Soledad? S. O'BRIEN: On this Labor Day 2006 we ask the question are American workers better off these days? The Bush administration would say yes. We talked just a little while ago to Labor Secretary Elaine Chao. Barbara Ehrenreich wrote the national best seller called "Nickel and Dimed", we spoke about that many months ago. She has a new book too, it's called "Bait and Switch, The Futile Pursuit of the American Dream." It's now out in paperback. Nice to have you as our guest this morning.

BARBARA EHRENREICH, AUTHOR, "BAIT AND SWITCH": Oh, glad to be with you.

S. O'BRIEN: Thank you very much. You may have caught the interview we did with the labor secretary just a short while ago. One of the things that she was touting were these new numbers which actually sound pretty impressive. Listen to what she said.

(BEGIN VIDEO CLIP)

ELAINE CHAO, LABOR SECRETARY: The majority of the 5.7 million new jobs created require higher skills, more education. So by definition they are better paying jobs. Our economy is evolving, it's transitioning to a knowledge-based economy.

(END OF VIDEO CLIP)

S. O'BRIEN: I had asked her about reports that some of the jobs that you see in the employment figures, while those are impressive figures that some of those jobs are actually low wage, low skilled jobs. She said no, not by a long shot. What do you see in the research and the work that you do?

EHRENREICH: Well I'm very puzzled by Elaine Chao's statement there. Because we do know that the jobs that have been growing most rapidly tend to be, with few exceptions like nursing and college professors, tend to be relatively low pay things, like retail clerk, wait staff, home health aid, janitor. That's where the growth is. This does not look like a knowledge economy. We have -- we've really seen a pay slump though for everybody. It's been going on for a while. It's been going on for years. We're not seeing gains either for the blue or the white collar people.

S. O'BRIEN: We talked a little bit about raising the minimum wage which was an effort that democrats tried to push through and it failed for several reasons that would raise the minimum wage from $5.15 an hour to $7.25. Do you think that that would really make a big difference?

EHRENREICH: It would make a big difference and it would push up the wages of a lot of people who are hovering near the minimum wage now. There aren't that many people who make the actual minimum wage $5.15 an hour. But it would lift a lot of people. I think it's -- we have to acknowledge $7.25 is not enough to live on or certainly not support a family.

S. O'BRIEN: What is the number to support a family of four? EHRENREICH: To support a family of four for one person then you're talking $16 an hour. You're talking much more than most employers would consider now.

S. O'BRIEN: Let me play for you something else that Elaine Chao said. She says that overall people are doing better. I asked her this in the wake of reports where it shows that a large percentage of Americans don't feel like the economy is better. Listen to what she had to say to that question.

(BEGIN VIDEO CLIP)

CHAO: As for the tax basis personal income has actually risen and it's very important to know that because of the president's tax cuts. The after tax, the disposable income, increased 9.2 percent since 2001.

(END OF VIDEO CLIP)

S. O'BRIEN: Disposable income increased 9.2 percent.

EHRENREICH: Well those tax cuts primarily affected the very, very wealthy who have seen their incomes go up. That's where there's a boom is at the very top level of the income spectrum. But if 63 percent of Americans think that we are on a seriously wrong course in terms of the economy, only 28 percent see that it's going well. You have to listen to them. I mean they are living in a real world, they're not seeing their wages or salaries increase. They're seeing rising costs of healthcare, college tuition, rent, that's going up even though housing is going down strangely. Home sales are down. So, you know, I think -- I get the feeling that Washington is in a little bit of a bubble. That there's a real disconnect between what they see and what the average American is experiencing right now.

S. O'BRIEN: What about the personal responsibility of the average American. I mean when you look at some of the debt and you look at some of the things that people are going into debt for. You wouldn't necessarily -- you know I look at my parents' generation, you know, everybody has a mcmansion these days. People go in debt to fund vacations. Those are the kinds of things that parents and grandparents would not have done generations before.

EHRENREICH: Well it's really only the top 10 percent or so that have those mcmansions. But talk about debt, Soledad. The biggest single cause of a bankruptcy in America is healthcare costs. Not running down to the mall and going crazy. You know its necessary expenses. And we've sort of used our credit cards as an alternative to a pay increase. We're not getting those pay increases so, ok, I'll put the gas on the credit card, then I'll put the groceries. One thing after another until that's out of control. Average household now has negative savings. Meaning just debt.

S. O'BRIEN: Barbara Ehrenreich, two terrific books "Nickel and Dimed" which is an absolute must read, joining the most recent book that's now out in paperback. Thanks for joining us this morning. We certainly appreciate it. EHRENREICH: My pleasure.

S. O'BRIEN: We have to take a short break. We're back in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: AM Pop this morning Tom Cruise says he's sorry for publicly criticizing Brooke Shields. We also have a preview of the fall movie line-up this morning. Jessica Shaw is with us, she's a senior writer for "Entertainment Weekly." Nice to see you. Long time no see. Let's get right to it.

JESSICA SHAW, ENTERTAINMENT WEEKLY: You too. Yes.

S. O'BRIEN: He finally apologizes. How long ago was that?

SHAW: It was last year already. You know he actually went to her house on Thursday night and Tom Cruise apologized to Brooke Shields for sort of dragging her into his whole tirade against antidepressants that you know, from last year on the "Today Show."

S. O'BRIEN: What do we know about what he said?

SHAW: Well, you know, he said that she suffered from post partum depression after the birth of her first daughter and she used antidepressants and she was very open about it and he criticized her and said you know what this could have been helped with exercise or with vitamins and she didn't need to do that. And he brought a person, you know he really attacked her personally and she was furious about that.

S. O'BRIEN: You don't think it's kind of weird that he went to her house to apologize a year later? Am I the only one that thinks that's a little odd?

SHAW: You know I feel like if this were a week before one of his movies coming out I would say total publicity ploy, this is ridiculous, some of his women viewers weren't as into him you know with "Mission III". But I have to think he has no reason to do it now, so maybe he just had a change of heart. Maybe he just realized, you know what, I messed up.

S. O'BRIEN: So he drove to her house a year late to apologize.

SHAW: Stalker!

S. O'BRIEN: Ah, ah. Moving on. Let's talk a little bit about some of the movies that are coming out. "Hollywoodland" stars Ben Affleck, Diane Lane, what's it about?

SHAW: Well it opens this Friday actually and it's about George Reeves who played the original superman in the 1950's TV show who apparently committed suicide. This is one of the unsolved mysteries of Hollywood. And it's about the investigator played by Adrian Brody who investigates his death. S. O'BRIEN: "The Departed", it's a Warner Brothers Picture, which makes it all in the family here for us at CNN. What's it about, who's in it?

SHAW: Exactly. It's a Scorsese movie with Leonardo DiCaprio and Matt Damon. It's about a cop who goes undercover in the mob and a gangster who goes undercover as a cop. Scorsese, you always have to think Oscar movie.

S. O'BRIEN: "Little Children", Kate Winslet, Jennifer Connelly. What's it about?

SHAW: It's about a housewife played by Kate Winslet who has an affair with Jennifer Connelly's stay at home husband played by Patrick Wilson. And again it's directed by Todd Field who did "In the Bedroom", so this is also definitely one to watch for Oscars.

S. O'BRIEN: This is the one I'm thinking about, "Casino Royale." This is the new, Daniel Craig as the new James Bond. What do you think? How do you think he's going to do?

SHAW: I'm personally willing to give the guy a shot but there are people still gunning for his demise.

S. O'BRIEN: What happened to you? We don't talk for a while and suddenly she becomes Mary Sunshine.

SHAW: You know what, he's the blonde Bond and people are furious. There are all these internet campaigns to boycott the movie. Bond should have brown hair. As a woman with brown hair I have to respect that opinion but I'm willing to give it a shot.

S. O'BRIEN: As a woman who has brown hair because my hairstylist makes it brown, I would agree with you on that one. "Dreamgirls", you have to love the show on Broadway, how do you think the movie's going to do?

SHAW: I think the movie's going to be great with Beyonce and Jennifer Hudson from "American Idol." And who would think Eddie Murphy, people are thinking this guy is a lock in for an Oscar nomination.

S. O'BRIEN: Really?

SHAW: Yes. I know. And that's coming out in late December, so.

S. O'BRIEN: So overall you're giving everything two thumbs up?

SHAW: I'm just telling you about the good ones. I intentionally omitted the bad ones that will make $5 at the box office.

S. O'BRIEN: Good. saving us some time. Always nice to see you. Jessica Shaw for "Entertainment Weekly." Thanks for being with us.

Got to take a short break. We're back in just a moment. Stay with us. (COMMERCIAL BREAK)

M. O'BRIEN: Well it's still not easy filling up the old Yucon XL, but it's getting a little bit cheaper, by degrees, you may be noticing it. Andy Serwer has been noticing it, right?

ANDY SERWER: I have Miles and you know this really is the controversy the business controversy of our time right now, especially of this season. And that is where in the world are gas prices headed? Important not only for businesses, of course, but for almost every American family. A huge difference between $2 a gallon and $3 a gallon. And as you suggest gas prices have been falling, are now down to about $2.80 nationally. The question is are we headed back to $2 or are we sort of permanently stuck around $3? There are those on Wall Street who see us heading back to $2. A lot of these high gas prices had everything to do with anticipating storms in the gulf of Mexico which of course may or may not materialize only Chad Myers knows, right?

M. O'BRIEN: Yes, there's still a little time in the season. Everything could go kafluey (ph) with that.

SERWER: And there's all kinds of other wild cards like what's going on in Iran, what's going on in Nigeria, what's going on in Venezuela? I mean these are the things that really are going to determine what's up with gas prices. So some people are of the feeling that the price will go down to $2 but there is one significant camp that thinks they're going to stay for $3 and moving up to $4 over the next decade. And that is the executives at the Chrysler Corporation, Tom Lasorda who's an executive there.

M. O'BRIEN: Not that Tom Lasorda.

SERWER: Not that Tom Lasorda, the auto executive Tom Lasorda and others are suggesting that gas prices will stay high and move higher and they are sort of backing up that feeling with action because they get a tremendous amount of their sales from SUVs and pickup. 75 percent of their sales, more than the other big automakers. So if they're going to be changing their business strategy based on their perception of where gas prices are headed, that's really saying something. But in a way it's a good thing because they're being conservative and maybe they'll make some cars and trucks that get better gas mileage, God forbid.

M. O'BRIEN: Are they talking about hybrids too or just trying to get the mileage --

SERWER: They're talking about everything and they have to at this point because Toyota has the big momentum and they have to get some of that back.

M. O'BRIEN: They're behind the power curve as they say. All right Andy Serwer, thanks very much.

SERWER: Thanks Miles.

S. O'BRIEN: Well "CNN NEWSROOM" is going to make its big debut in just a few minutes. Here's a look at what's coming up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You've given up so much of your life, do you have any regrets at all?

UNIDENTIFIED FEMALE: I don't have any regrets. I don't even regret the being out there.

UNIDENTIFIED FEMALE: Being a prostitute?

UNIDENTIFIED FEMALE: It taught me a lot.

(END OF VIDEO CLIP)

S. O'BRIEN: The Mary Magdalene Project, redemption for prostitutes. That and much more right after this AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: We're out of time here on AMERICAN MORNING.

M. O'BRIEN: I think it's time for a drum roll. Tony Harris, in Atlanta.

TONY HARRIS, CNN ANCHOR: Well how about that, well thank you.

M. O'BRIEN: Debut of "CNN NEWSROOM". Hello Tony.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com