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American Morning
President Bush to Hold News Conference in Rose Garden; North Korea Nuclear Test; Iraq Casualty Numbers
Aired October 11, 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: Let's begin with the heightened tensions in Asia. Japan not waiting for the rest of the world, imposing its own sanctions against North Korea.
CNN's Aneesh Raman joins us live from Tokyo this morning.
Aneesh, good morning.
Oh, it looks like we're having a little difficulty there. There he is.
Aneesh, can you hear me?
Obviously we're having a little -- let's -- it seems like we have audio established with Suzanne Malveaux, who is covering all of this from the White House.
Let's get back to Suzanne.
Suzanne, my apologies for that very, very messy intro to you.
Good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning.
Well, the news from the White House is that the president is going to have an 11:00 news conference, a press conference in the Rose Garden. One senior administration official saying it is really to go back on the offense here, four weeks before the midterm elections, really to try to get back on message.
They have been really buried by the Foley scandal, the Iraq casualties, and, of course, North Korean news. They want to get back on message.
One of the things that many of us will be talking about and asking about is, in fact, North Korea. And the strategy of the administration now is really to try to rally North Korea's neighbors to get as tough as possible, those sanctions against the regime. They feel that North Korea's neighbors has the most leverage in doing so. It was just yesterday we heard from Secretary of State Condoleezza Rice in "THE SITUATION ROOM".
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: They are pursuing a nuclear program. They've been doing it for decades. They will face now international condemnation and international sanctions unlike anything that they've faced before.
(END VIDEO CLIP)
MALVEAUX: Now, Secretary Rice, as well as other White House officials, are still refusing North Korea's one demand for immediate one-on-one talks. Secretary Rice and others saying that they do not believe that that's useful. Those talks can happen once North Korea comes back to the six-party talks, the negotiating table. They feel that way the United States has a lot more bargain power and leverage -- Soledad.
S. O'BRIEN: Suzanne Malveaux at the White House for us.
Suzanne, thank you.
We should mention that we're going to hear from President Bush, who is holding a press conference later, 11:00 this morning.
Let's get to Aneesh Raman. He is reporting from Tokyo this morning on Japan's plans to go ahead with their sanctions.
Aneesh, good morning.
ANEESH RAMAN, CNN CORRESPONDENT: Good morning, Soledad.
While the U.N. debates what sanctions if any to impose on North Korea, Japan pushing ahead on its own. In the past few hours, the Japanese cabinet deciding on a new round of sanctions for North Korea, unilateral sanctions that include a ban on all ships coming from North Korea to Japan. A ban as well on all imports and exports between the two countries.
This is not a small deal for North Korea. Trade between Japan and North Korea totaled around $180 million last year alone.
Meantime, in Pyongyang today, in an interview with a Japanese news service, the number two man in North Korea said that if the U.N. imposed sanctions on the country, North Korea would refuse to join any new round of six-party talks. He also said that a second nuclear test in North Korea wasn't up to Pyongyang but, instead, up to Washington. And that if the U.S. could put mounting pressure on North Korea it would be forced to conduct another test -- Soledad.
S. O'BRIEN: Then, Aneesh, you had this earthquake that was at first believed to be, in fact, a second nuclear test. Is there a sense that, in fact, North Korea is working on a second test?
RAMAN: Well, the Japanese foreign minister today speaking to the Japanese parliament said he had unconfirmed information that North Korea was going to conduct a second test imminently, perhaps as early as today. As you mention, a sign of how tense things are here came this morning.
The Japanese news media saying an earthquake took place that was caused by a second test. That was immediately refuted by the South Koreans, who said they noticed no seismic activity in North Korea. They turned out to be right. It was an earthquake not even in North Korea, but instead off the -- off the eastern coast of Japan. But it's a sense of how tense things are here and how closely Japanese people and officials are watching what happens in North Korea -- Soledad.
S. O'BRIEN: Aneesh Raman in Tokyo, Japan, this morning.
Thank you, Aneesh.
Now China at this point is North Korea's only real ally. And even China's backing away from that very word, "ally". However, they are about to step forward in endorsing the sanctions against North Korea.
Let's get right to Hugh Riminton. He is in Beijing for us this morning.
Hugh, good morning.
HUGH RIMINTON, CNN CORRESPONDENT: Hello, Soledad.
Well, there's no doubt that of North Korea's neighbor, the one with the maximum leverage is China. The question is, will they use it?
Well, the thing that many in Washington secretly and sometimes not so secretly would love to see in North Korea -- that is, regime change -- is the thing that terrifies China. They are worried that if they were to introduce the sorts of sanctions that would have maximum effect, the turning off of the tap of energy, of which China provides most of North Korea's needs, plus food -- it's a major food supplier into North Korea -- it could destabilize the Kim Jong-il regime to the point where chaos could ensue on the Korean peninsula. China very keen to avoid that prospect.
And in the course of the last few hours, our reporters up on the border of China and North Korea have reported seeing trucks continuing to flow across that border with supplies in and out of North Korea. So no immediate sanctions on that level.
There is no clear sign of what China will do. They will approve punitive actions, but they say they will be prudent in those actions of appeal for calm, and they say the humanitarian needs of the North Korean people must be kept in account in any decisions made in the days and weeks ahead -- Soledad.
S. O'BRIEN: Hugh Riminton for us this morning. He's in Beijing.
Thanks, Hugh -- Miles.
M. O'BRIEN: From North Korea to Iran, Iran's nuclear ambitions will be the subject of high-level talks today. The U.S. and five other nations holding a teleconference to consider a menu of possible sanctions. Iran insists it is pursuing nuclear technology for peaceful means and is vowing to continue making nuclear fuel.
A stunning and controversial new estimate on Iraqi civilian deaths since the U.S. invasion more than three and a half ago -- 655,000 Iraqi civilians dead. Far higher than any other estimates we've seen.
CNN's Cal Perry joining us live from Baghdad with more on just how this estimate was done -- Cal.
CAL PERRY, CNN CORRESPONDENT: Well, good morning to you, Miles.
The estimate really far more academic than scientific. What I mean by that is that rather than counting the bodies actually going out on to the streets of Iraq and counting bodies, what this group did was surveyed 13,000 people at random, saw how the violence affected their lives, then took those results and put it up against the greater population of Iraq.
Now, Baghdad as a local population of four million people has certainly seen more than its fair share of violence. Two major events recently. The holy month of Ramadan, coinciding with the major security plan to secure the capital, has in many ways, Miles, only fueled the violence.
(BEGIN VIDEOTAPE)
PERRY (voice over): This is the scene after the bodies are found. How bad is the sectarian violence in Iraq? Bodies are the barometer. And in one day, more than 60 were found in the capital. Many of them mutilated, executed, bound.
Relatives grieving outside hospitals to collect their loved ones. This, a scene that is played out in the capital more than 280 times so far this month. No end in sight to the tit-for-tat sectarian killings.
COL. JEFFREY MCCAUSLAND, U.S. ARMY (RET.): We have added that deadly mix, intersectarian violence, which is the center point of everybody's attention in Iraq. And obviously if we can't dampen down the intersectarian violence, the possibility of civil war certainly looms large.
PERRY: Besides the mounting toll of Iraqi casualties, a deadly October continues for U.S. troops. More than 30 killed in combat in the first 10 days of October. Most of them as U.S. and Iraqi forces press ahead with Operation Together Forward, aimed at flushing extremists out of Baghdad. More U.S. troops on the streets means more U.S. casualties.
MCCAUSLAND: We've seen this dramatic upsurge in killing, particularly in Baghdad, and certainly we must get control of that situation. And the next few months will be certainly critical in that effort.
PERRY: Operation Together Forward has yielded its successes, according to the U.S. military, saying that overall attacks are up, but their "effectiveness" is down.
(END VIDEOTAPE)
PERRY: Now, Miles, we've been speaking all morning, of course, about this staggering figure from this new study, 600,000 Iraqis perhaps killed from the invasion until now. One figure we know for sure coming from the Iraqi government, sectarian fighting across the country has to date displaced more than 300,000 Iraqis -- Miles.
M. O'BRIEN: Cal Perry in Baghdad.
Thank you very much.
A mortar attack on an ammunition dump in Baghdad set off a series of spectacular explosions. The ammo dump held tank, artillery and small arms rounds. The blast shook buildings four miles away and it continued for over an hour. No deaths or serious injuries reported, however -- Soledad.
S. O'BRIEN: A deadly crash in France this morning. A freight train and a passenger train collided into each other in northeastern France near the border with Luxembourg. First reports say 13 people are dead. Six or seven other people at this point are reported missing.
Still to come this morning, the Mark Foley factor in the midterm elections. We'll take a look at how the scandal turned a favored Republican candidate into an underdog virtually overnight.
And take a look at this. This, sadly, is downtown Franklin, Virginia. Residents eager to get home and get back to their businesses to see the damage.
We'll take you there straight ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
M. O'BRIEN: About 12 minutes past the hour. If you're heading out the door, Chad Myers has what you need to know.
Hello, Chad.
CHAD MYERS, CNN METEOROLOGIST: At least one of those jackets that you can sew the liner in, I think.
(WEATHER REPORT)
M. O'BRIEN: All right. Thank you, Chad.
MYERS: You're welcome.
M. O'BRIEN: The latest now on the fallout from the Mark Foley scandal. An Arizona congressman is defending the way he handled a complaint from a former page about Mark Foley six years ago. Meanwhile, another central figure is slated to testify this week.
We get the latest on all this from Andrea Koppel, who's joining us now from Capitol Hill.
Hello, Andrea.
ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Hi there, Miles.
That's right, the former chief of staff to Mark Foley, Kirk Fordham, is supposed to be testifying before the House Ethics Committee. And he'll be telling them this week that he notified a top aide to House Speaker Dennis Hastert about Foley's behavior several years ago.
Meanwhile, yet another central figure in the Foley scandal. Kirk -- excuse me -- Jordan Edmund, who is a former page, we saw him now for the first time yesterday. He's the one who allegedly received those sexually explicit instant messages from Foley. He appeared along with his attorney after they met with the FBI yesterday in Oklahoma City.
(BEGIN VIDEO CLIP)
STEPHEN JONES, JORDAN EDMUND'S ATTORNEY: Jordan answered all of their questions relying upon his memory as it exists. He was not served with any subpoenas to appear before any grand jury. He was not asked to return.
(END VIDEOTAPE)
KOPPEL: Now, Jordan Edmund served as a House page back in 2001 and 2002 -- Miles.
M. O'BRIEN: All right. Let's talk about Representative Jim Kolbe of Arizona, the only openly gay GOP member of Congress. He issued a statement trying to set the record from his perspective straight.
What did he say?
KOPPEL: Well, what he said was that his office had received -- had basically been contacted by a former page going back to 2000. And this page said that he had received e-mails from Foley that made him feel uncomfortable.
Kolbe defended his actions at the time and he said that he was not shown the content of the messages and was not told that they were sexually explicit. He said it was his recommendation that the complaint be passed along to Representative Foley's office and the clerk who supervised the page, and he said this was done so promptly. Kolbe said that he personally had assumed that the contact had ended, Miles, because they never heard back from this page -- Miles.
M. O'BRIEN: Andrea Koppel on Capitol Hill.
Thank you very much -- Soledad.
S. O'BRIEN: The Mark Foley factor may decide the fate of some Republican congressmen, including New York's Tom Reynolds. A week after defending how he handled complaints about Mark Foley, Reynolds is fighting for his political life.
CNN's Mary Snow is live for us in Amherst, New York.
Mary, good morning.
MARY SNOW, CNN CORRESPONDENT: Good morning, Soledad.
And here in western New York, outside Buffalo, Republican Congressman Tom Reynolds is sometimes referred to as the king of politics because he is in charge of getting Republicans elected to Congress. But now he finds that his own race is not a sure bet.
(BEGIN VIDEOTAPE)
SNOW (voice-over): Call it the Foley factor.
REP. THOMAS REYNOLDS (R), NEW YORK: Looking back, more should have been done. And, for that, I am sorry.
SNOW: A $200,000 ad of contrition by Congressman Tom Reynolds is being countered by his opponent, Democrat Jack Davis, who's charging a Republican cover-up.
NARRATOR: Reynolds says he did nothing wrong. But, when it comes to protecting kids, isn't it wrong to do nothing?
SNOW: And there could be more ads like that to come.
Davis' camp says it set aside $400,000 for commercials as the campaign winds down. In these final weeks, the tide has turned, with Davis now taking the lead over Reynolds, a four-term Republican incumbent and the chair of the National Republican Congressional Committee.
Reynolds was thrust into the spotlight last week. He answered questions about his actions upon first learning last spring of an overly friendly e-mail exchange between Mark Foley and a former teenage page.
REYNOLDS: I did what most people would do in a workplace. I heard something. I took it to my supervisor.
SNOW: Since then, a local poll shows a double-digit lead. But Reynolds, who was once again, is now trailing.
Reporter Bob McCarthy has covered Reynolds for 25 years, and says she has never been on the defense.
ROBERT MCCARTHY, "THE BUFFALO NEWS": Things have gotten very serious for him in the last 10 days. But I don't think -- I also think there's no question that this was a very serious race, even before the Foley affair.
SNOW: McCarthy has dubbed Reynolds "Mr. Clout" and says he has plenty of loyal followers. But he says how Reynolds continues handling himself will be key. For now, Reynolds is keeping a low profile, waiting for the dust to settle, to return to issues like the economy. But even if Davis doesn't keep the Foley factor alive, observers predict somebody else will.
(END VIDEOTAPE)
SNOW: And so far, two political action committees have begun running their own anti-Reynolds ad campaigns that have been on the air this week -- Soledad.
S. O'BRIEN: So how is Reynolds holding up on the campaign trail?
SNOW: You know, that's the question, Soledad, because right now the campaign is being aired on TV commercials. Congressman Reynolds has had no public events this week, and the theory or the thought in his camp has been to kind of let the dust settle and get back to focusing on issues like the economy, figuring that toward the end of the campaign that will happen.
But already we've gotten news just yesterday that one event this campaign was counting on, Senator John McCain was scheduled to come here later in October to attend a rally for Congressman Reynolds, and that event has been -- or his appearance has been canceled because of scheduling conflicts.
S. O'BRIEN: Oh. Well, that's interesting. That might be a long wait if he's waiting for it all to die down.
Mary Snow for us this morning in Amherst, New York.
Thanks, Mary.
If you want more information on this story or any other political story, go right to our Web site, CNN.com/ticker -- Miles.
M. O'BRIEN: Coming up, fashion and fertility. Women who dress to the nines may think they got the idea from "Vogue," but the real motivator might be in a scientific journal. We'll explain.
Plus, it looks like rough times for the restaurant business. Andy will explain ahead.
(COMMERCIAL BREAK)
M. O'BRIEN: In America this morning, in Dallas right now, firefighters battling a fire at a supermarket. The roof collapsed, nearby roads closed. A freight train has been stopped and all freight traffic stopped. The fire is near Love Field, but air traffic not affected. No injuries reported.
Look at these pictures, Franklin, Virginia. Water two feet deep over most of the city's downtown. Torrential rains this past weekend caused the nearby Blackwater River to spill over, flooding the town. City workers hope to get a damage assessment today. In Pennsylvania, details of the chilling 911 call made by the man who killed five Amish girls at a school last week. Police won't release the actual tapes, but the transcripts show that Charles Roberts warned state troopers they had two seconds to get off the grounds and then began shooting before they could react.
Charges filed against that 13-year-old boy who fired a shot from an assault rifle inside a Missouri school. Among the charges, first- degree assault, armed criminal action, and making a terrorist threat. A hearing today will determine whether he'll be tried as a juvenile or as an adult.
In Louisiana, now safe to drink tap water all over New Orleans. Water service restored now to the northern section of the Lower Ninth Ward. That's the last remaining area without drinkable water since Hurricane Katrina devastated the Gulf region more than a year ago -- Soledad.
S. O'BRIEN: Thank you, Miles.
Business news now. How do gas prices affect what we eat?
Andy Serwer has the answer to that question. He's "Minding Your Business" this morning.
Good morning.
ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Good morning, Soledad.
We always talk about the ripple effect of higher gasoline prices in the economy. Here's yet another example.
The restaurant business reporting that sales were generally weak over the summer months heading into September because of high gasoline prices. And this is kind of a no-brainer. I mean, high gas prices take money right out of the pockets of consumers who did two things.
Number one, they stayed home more. Didn't go out to eat. Number two, when they did go out to eat because they had less money, they traded down. So, in other words, if you were going to Applebee's, instead you went to McDonald's.
Now, the good news for the restaurant business and for those of us who like to eat out is gas prices are down so people are going out more. This quarter, the restaurant business probably going to recover a little bit because we've got more money in our pockets.
S. O'BRIEN: It makes a lot of sense to me.
SERWER: Yes.
S. O'BRIEN: All right.
SERWER: Now, speaking about the restaurant business and fast food, Burger King, which went public this summer, has a new pitch man familiar to many, many of us. It's Diddy. Yes, get ready for Diddy. Diddy is the new pitch man. And they are rolling out these ads, where else? It's where everybody is pitching things these days, on YouTube. Check it out.
(BEGIN VIDEO CLIP)
DIDDY, ENTERTAINER: If you all don't know, I'm here to also announce to you all that Burger King has named me the king of music and fashion.
Can I get a Whopper with everything on it? That's the way I want it. Everything: onions, cheese, ketchup, mayonnaise, salt and pepper.
You getting my Whopper? Because you sure ain't moving. You ain't moving.
UNIDENTIFIED MALE: No. It's just not ready.
(LAUGHTER)
(END VIDEO CLIP)
SERWER: That's what's so great about these ads, you know, the stuff on YouTube. It doesn't have to be a traditional ad, "I'm here pitching this"... blah, blah, blah. I mean, it's interactive. He's talking to people, they're messing around.
It looks very verite. You know? And it probably is to an extent.
They said, Diddy, go over and order a burger. Interact with this guy and see what happens. And so...
S. O'BRIEN: Give him a hard time about how long it's taking.
SERWER: Yes, give him a hard time. "Are you getting my burger? Are you getting my burger?"
S. O'BRIEN: Are they going to roll out more traditional ads, too?
SERWER: Yes, they are. I think they're going to do all kinds of stuff. They've got a lot of tie-ins. And of course when you do one of these things it's multi-platform, as they say in the business.
S. O'BRIEN: What are they paying him to be the spokesman (ph)?
SERWER: Well, you know, and that's the thing, because people are saying, why is Diddy doing it? It's all about the Benjamins, as Diddy used to say.
S. O'BRIEN: Maybe he loves Burger King.
SERWER: He probably -- I bet you're not going to catch him in McDonald's.
S. O'BRIEN: He could be a BK fan, too.
SERWER: That would be some great stealth video. If you catch Diddy in a McDonald's, send us the tape. We want to see that. He's probably not supposed to go there. Right?
S. O'BRIEN: Yes. You would think that would be in the contract.
SERWER: I think so.
S. O'BRIEN: All right, Andy. Thanks.
SERWER: Thanks, Soledad.
S. O'BRIEN: A new meaning to the old phrase "dress for success." It seems there's a direct correlation between fertility and fashion. A new study found that women tend to dress better when they are ovulating.
The researchers hypothesize...
SERWER: All right.
S. O'BRIEN: ... that it's a subliminal response to attract a mate. Sure.
SERWER: Yes.
S. O'BRIEN: Miles.
M. O'BRIEN: Yes, just looking at that picture. Got distracted.
Coming up on the program, North Korea may have the bomb. Could it be a cash crop for Kim Jong-il's regime, and could that mean a nuke in the hands of terrorists?
We'll take a closer look.
And later, one city's experiment: outsourcing city hall. We'll see if privatizing the government is the wave of the future, ahead.
(COMMERCIAL BREAK)
M. O'BRIEN: That would be the opening bell on Wall Street on this October 11th. The Dow Jones industrial average beginning with -- at another record level, 11,867. Beat out the old record by .8 or something like that. Still a record, though, folks. It was up nine points in total in yesterday's trading.
Good morning to you. Wednesday, October 11th. I'm Miles O'Brien.
S. O'BRIEN: And I'm Soledad O'Brien.
Let's get right to the news. We'll also look at some of the stories we're following for you this morning. The world trying to figure out what to do about North Korea. Pyongyang is now saying that it's going to consider sanctions of declaration of war.
Iran is also on the radar this morning. The U.S. and five of its allies will discuss whether sanctions are necessary to deter Iran from processing uranium as part of its disputed nuclear program.
A new study coming out this morning estimates that more than 650,000 Iraqis have died since the U.S. invasion.
(WEATHER REPORT)
S. O'BRIEN: A new estimate this morning on the number of Iraqi civilians killed since 2003. It is a startling figure, 655,000. That's 20 times more than what President Bush estimated just the other day.
CNN's Arwa Damon is live for us in Baghdad to tell us just how this estimate was put together.
Arwa, good morning.
ARWA DAMON, CNN CORRESPONDENT: Good morning, Soledad.
Now this estimate was extrapolated from a survey of some 1,800 Iraqi households, 13,000 Iraqis that this group went out and spoke to about how the war impacted their lives, who died from their families, how, when and why. Based on that, they did the math against the total population of Iraq and came up with an estimated figure of over 600,000 Iraqi deaths since this war here began.
This is a grossly larger number than anything that we have really heard in the past. The highest estimate in the past from sources that were not that reliable was about 100,000. From more reliable sources we were hearing 50,000 Iraqis killed. Really, this number just staggering.
Of course, at this stage, just an estimate, but if we look over history and conflicts and war, oftentimes we do not know the true number of the civilian deaths. We do not know the true cost of what the war has been until many years later. Now, the methodology used here is one that has proven reliable in the past.
But right now it really just remains an estimate. We spoke with the Iraqi Ministry of Health earlier, that called this number illogical and an exaggeration. But, Soledad, reality is that here on the ground in Iraq, it is very difficult to determine exactly what may be going on.
S. O'BRIEN: Arwa Damon in Baghdad for us. Thanks, Arwa -- Miles.
M. O'BRIEN: North Korea may see nuclear weapons as a bargaining chip with the rest of the world and potentially a valuable commodity that could be sold on the black market to terrorists. It's a scary scenario that may have roots in Pakistan.
We get more from CNN's Nic Robertson, joining us from London. Hello, Nic.
NIC ROBERTSON, CNN CORRESPONDENT: Hello, Miles.
Well, Pakistan and North Korea have long had deals and associations with conventional missiles. This goes back to the days when Pakistan was building up its arsenal of weapons in case it went to war with India. What changed in that dynamic, perhaps, was when the AQ Khan -- who's the father of Pakistan, or seen as the father of Pakistan's nuclear bomb -- was sent by Pakistan to North Korea. He sold North Korea about two dozen centrifuges and these were used to make highly enriched uranium. This is a fissile material that's used in some nuclear bombs.
Now, that was the beginning of the nuclear relationship between Pakistan and North Korea. North Korea's recent tests, according to most experts, use plutonium and not uranium. And Pakistani officials are saying we have no connection, therefore, with North Korea's tests.
However, a lot of experts are very concerned about what else AQ Khan may have sold the North Koreans. They point to the instance of Libya, that AQ Khan sold missile technology, how to make missiles capable of carrying a nuclear warhead. He sold those plans to Libya. And the fear is he may also have sold those plans to North Korea. And the reason nobody knows is that AQ Kahn has never been interviewed by international intelligence officials. He's under house arrest in Pakistan. Even President Musharraf in Pakistan may not be fully familiar of what AQ Khan he has done in the past, Miles.
M. O'BRIEN: Let's talk for a moment, Nic, about the reality of the black market here. What could North Korea sell? Could it be just a hunk of plutonium or an actual device, and what would it fetch and who might be the buyers?
ROBERSTON: Well, it could sell potentially what it was sold by AQ Khan, which is -- the assessment is that that could be a set of blueprints. Or it could be an advancement on those blueprints about how to make a missile. Or if they have additional plutonium, then the concern could be that they could sell that. What North Korea has a track record of doing is selling to nations who perhaps the United States and many other countries around the world would not like to see by missiles, long range missiles. Sold to Iran, sold to Syria, some of these missile parts. And the concern is that they could also add to that list of weapons technology, nuclear technology as well -- Miles.
M. O'BRIEN: Nic Robertson in London, thanks very much.
Here's a novel way to fill the potholes and pick up the trash. Hire a for-profit company to do that. The newly minted city of Sandy Springs, Georgia, has decided to outsource its municipal business. But will the private sector protect the public's rights?
Rusty Dornin explains, live now from Sandy Springs. Hello, Rusty.
RUSTY DORNIN, CNN CORRESPONDENT: Well, you know, Miles, there is nothing new about cities hiring private companies to do certain things, to perform certain tasks. But having a private business do it from the ground up is. And that's why Sandy Springs will be the nation's first private guinea pig.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: These guys have really done a great job.
DORNIN (voice-over): The Ferarres (ph) were fed up. For more than a year, they tried to get their curb fixed.
UNIDENTIFIED MALE: Well, the problem was, without the curb, it started washing out the dirt along the road.
DORNIN: The couple lived in an Atlanta suburb that has been pushing to become its own city for several decades. And then it was approved by the voters last year.
In this case, that meant no more government bureaucrats, because this city of Sandy Springs is run by a private company.
UNIDENTIFIED FEMALE: They came out right away. There was not a week's delay. There was maybe an hour's delay.
DORNIN: Sandy Springs, a city of more than 80,000 people, is the first U.S. city designed to be run by a private company. But when the green light came from the state, there were a few obstacles.
UNIDENTIFIED FEMALE: We had no money, and we could not sign a contract.
DORNIN: Mayor Ava Galambos (ph) says that's when they decided to hire CH2M Hill to provide services, everything but police, fire and courtroom personnel.
Outsourcing for cities has been around for a long time, but not for an entire city. So why would anyone want a private company to run their city? Patrick Collota (ph) says it means less red tape.
UNIDENTIFIED MALE: Much more cost effective, fewer bodies and we feel the service deliveries will be substantially higher.
DORNIN: Part of that service is a 24/7 call line so taxpayers can always get a human being. Since last year they've received 50,000 calls, everything from pot holes to permits. The experiment is going so well, two other cities plan to hire CH2M Hill to run their government, and call are coming in nationwide inquiring about the experiment.
But some critics say beware, the Union for Municipal Employees is against privatization.
KERRI KORPI, AMERICAN FED. OF MUNICIPAL EMP.: When you turn over the keys to city hall to a private corporation, you basically have -- it's a colossal risk. Let's look at what happened in the Katrina cleanup or the rebuilding of Iraq.
DORNIN: And traditional cities must open their books to employee misdeeds, not so far for private companies.
(on camera): But what if I want to find out about what that person did?
UNIDENTIFIED MALE: We are not subject for those open records for that type of review or scrutiny, but we do take care of it.
DORNIN: The Ferarres say they don't know all the pros and cons, but for them, this outsourcing experiment is working.
(END VIDEOTAPE)
DORNIN: Now, besides the Marin (ph) City Council, there are only five public employees, including the city manager and the city clerk and things like that. They act as an intermediary between the Marin City Council and the business. And, as pointed out in the piece, there are two other cities nearby that are wanting to do this same experiment -- Miles.
M. O'BRIEN: Rusty, I'm just a little curious. Where are the savings in this, really? How are they able to do and -- the private sector intrinsically can do it with fewer people?
DORNIN: Fewer people is a great example, because Roswell, which is an adjoining city, has this same -- approximately the same population. They have 1,400 city employees. This city has 366. Also, the budget here is $70 million a year. Roswell's is something like $97. So they're doing it with $27 million less money and a lot fewer people so far.
M. O'BRIEN: It would be interesting to see if those potholes get filled. Let's hope it works out for them there. Rusty Dornin in Sandy Springs, thank you.
M. O'BRIEN: Coming up, she's got a voice like buttah, but a mouth like a sailor. Barbra Streisand gets salty with a concert-goer in New York City. We'll give you details.
Plus, we'll talk acclaimed celebrity photographer Annie Leibowitz about her new book. We'll find out why she has turned the lens on her personal life, ahead.
(COMMERCIAL BREAK)
S. O'BRIEN: A reminder, everybody. You'll be hearing from President Bush. He's got a new conference that begins at 11:00 a.m. Eastern Time. He'll be talking about North Korea, also Iraq, and then he'll be taking questions as well. We're going to carry that for you live for you when it happens. The president talking from the Rose Garden this morning. The North Korean nuclear test is causing debate among the 2008 presidential candidates. Here's the question, which administration is more to blame for the crisis?
Brian Todd has a look this morning.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): The political infighting in the U.S. over who lost North Korea has gone nuclear.
SEN. HILLARY RODHAM CLINTON (D), NEW YORK: Some of the reasons we are facing this danger is because of the failed policies of the Bush administration. And I regret deeply their failure to deal with the threat posed by North Korea.
TODD: Specifically, Senator Clinton's aides tell CNN she believes the Bush administration should have done more than rely on six nation talks that have so far failed to get Kim Jong-Il to give up his nuclear ambitions.
The man who may run for president against her in two years had this to say.
SEN. JOHN MCCAIN (R), ARIZONA: I would remind Senator Clinton and other Democrats critical of the Bush administration policies that the framework agreement her husband's administration negotiated was a failure. We had a carrots and no sticks policy that only encouraged bad behavior. When one carrot didn't work, we offered another. Now we are facing the consequences.
TODD: Contacted by CNN, a spokesman for President Clinton said North Korea conducted no nuclear weapons development during the eight years of that administration. And on McCain -- quote -- "It is unfortunate that anyone would attempt to rewrite history to score political points at a time when we need to address this serious threat."
But security experts say North Korea likely would have pursued this program regardless of the approach.
UNIDENTIFIED MALE: Kim Il Sung, the Great Leader, the father of Kim Jong-Il the current leader, saw what nuclear weapons did for Mao Tse-Tung in China four decades ago.
TODD: And Chris Hill, the current U.S. negotiator for North Korea, points out that the North built what he calls its first ramshackle nuclear reactor back in the 1970s.
(on camera): One expert points out this current debate could even be harmful to U.S. national security. The North Koreans, he says, are watching this, looking for seams inside America's political system to see how much maneuvering room they can get.
Brian Todd, CNN, Washington. (END VIDEOTAPE)
(WEATHER REPORT)
S. O'BRIEN: In this morning's A.M. Pop Annie Leibowitz is famous for photographing the famous. Well, now she's turning her legendary lens on her own life, in a new book called "A Photographer's Life: 1990 to 2005." She joins us this morning.
So nice to see you. The book is absolutely beautiful.
ANNIE LEIBOWITZ, "A PHOTOGRAPHER'S LIFE": Thank you.
S. O'BRIEN: I was surprised that it was so personal, many pictures of your family, especially your father, your mom, that I hadn't even seen before or heard about before.
LEIBOWITZ: Well, I had a retrospective book due to Random house for the years covering 1990 to 2005. And I think what really happened when Susan Sontag died, I started looking for a photograph of Susan for a memorial book that was -- that we were going to do for her memorial service, and I started to discover all of these photographs that I had that I didn't really realize I had. It was sort of -- it was new too me also, and, you know, with her death, and my father's death and the birth of my children, I started to look at these photographs, and they meant so much to me.
S. O'BRIEN: You were telling a funny story about how you met and sort of the advice that she first gave you. So tell me that story.
LEIBOWITZ: No, when we first met, she said, you're good, but you could be better. And I think she sort of raised the bar. And, you know, she was an extraordinary person.
S. O'BRIEN: The celebrities in the book include Brad Pitt. Really great picture. He's, you know, a handsome man.
LEIBOWITZ: He's a handsome man, yes.
S. O'BRIEN: And also Jamie Foxx. Here's a picture of him. Nicole Kidman looking absolutely glorious as well. Is it hard to shoot people who are constantly having their picture taken, to sort of get new ground there? When they've had a million pictures taken of them.
LEIBOWITZ: Not really. Not really. I mean, I think if you are asking, are they, you know...
S. O'BRIEN: Is it hard to break through? I would imagine as a photographer...
LEIBOWITZ: Sometimes you don't want to break through. Sometimes it's just fine, the surface is just fine. And I think with, you know, actors and actresses and in the entertainment world, sometimes the surface can be just as interesting. I am not afraid of the surface. But, you know, this breaking through, this getting to the heart of the matter, it doesn't happen that often, and it really depends a lot on your subject.
S. O'BRIEN: There's a picture of Susan laid out in a dress, I guess, that was one of her favorite dresses from Milan, and some very moving pictures. She had just died. And I guess your dad's death was very close to her death as well.
LEIBOWITZ: Six weeks.
S. O'BRIEN: Some have said to me, this was a book for grieving. This is a book about, you know, to help process grieving. Is that true?
LEIBOWITZ: Well, for me, to edit these pictures, to find these pictures, to discover these pictures, it helped me with the grieving process. I am hoping when people look through this work, they also see life. And they see a love story, and, you know, they see my children being born. I mean, it's just -- it's more about the life cycle to me than it is just about death, and death is part of life.
S. O'BRIEN: It's a beautiful book. Annie Leibowitz, nice to have you. Thanks for coming in to talk to us. We certainly appreciate it.
M. O'BRIEN: "CNN NEWSROOM" is just moments away. Tony Harris is at the CNN Center with a look at what's ahead.
Hello, Tony.
TONY HARRIS, CNN ANCHOR: And, Miles, good morning.
"CNN NEWSROOM" is next. The North Korean regime threatening to explode a second nuclear device. President Bush may respond. He's called a news conference for this morning. The House Ethics Committee behind closed doors again this hour on the Capitol e-mail scandal.
And protecting kids from online predators. The host of "America's Most Wanted," the creator of "Baby Einstein," they've teamed up on a new DVD. We'll talk with them live in the NEWSROOM.
Join Heidi Collins and me in the "NEWSROOM." We get started at the top of the hour right here on CNN -- Miles.
M. O'BRIEN: Thank you, Tony. We'll see you then.
Coming up, did she or didn't she? We'll tell you why the Madonna adoption rumors are swirling yet again. Stay with us.
(COMMERCIAL BREAK)
M. O'BRIEN: Madonna is in Malawi, remaining mum on whether she is about to become a mum to a one-year-old boy. But the boy's father and government officials of the desperately poor African nation say it is true. Yohame Banda (ph) says his wife died a month after his son was born and he's very, very happy for his son David. He says he's been assured David will make frequent trips to Malawi to know his roots.
And the "Funny Girl" drops the F bomb at Madison Square Garden. Barbra Streisand, returning to touring after a 12-year hiatus, wowed the crowd with her just like buttah voice, but took some time for a skit making fun of the president with a George Bush impersonator. There you see him there. That drew jeers from a heckler, and that is when she told him to shut the blank up. At that point, the crowd went wild -- Soledad.
(BUSINESS HEADLINES)
S. O'BRIEN: Ahead at the top of the hour, a staggering body count to tell you about. More than half a million Iraqis dead since the U.S. invasion. We'll tell you how they arrived at this new estimate.
And ready or not, here comes the snow. An early winter preview for cold weather fans.
More AMERICAN MORNING is straight ahead.
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S. O'BRIEN: That's it. That's all for us from AMERICAN MORNING.
"CNN NEWSROOM" with Tony Harris and Heidi Collins begins right now.
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