Return to Transcripts main page

American Morning

North Korea Threat; The Fight for Iraq; Naming the Priest; Investigating Foley

Aired October 18, 2006 - 06:00   ET

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


MILES O'BRIEN, CNN ANCHOR: Good morning, Wednesday, October 18. I'm Miles O'Brien.
SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

Our top story this morning, Secretary of State Condoleezza Rice in Tokyo. Her trip comes as U.S. intelligence says North Korea is getting ready for a second nuclear test.

M. O'BRIEN: Let's get right to the news wall.

Condoleezza Rice just met with reporters there in Tokyo. They are pushing for a hard-line there in response to North Korea's nuclear saber rattling. Her next stop, Seoul, South Korea.

Disgraced former Congressman Mark Foley to reveal the name of the priest he claims abused him when he was young. Foley trying to refute claims he fabricated the abuse story.

S. O'BRIEN: It's now five people who are dead after the flooding in Texas. A flood warning remains in effect this morning for Houston and parts of Louisiana as well.

Let's get right to Chad Myers. He's at the CNN Weather Center. He's watching the situation in Texas for us.

Hey, Chad, good morning.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.

(WEATHER REPORT)

S. O'BRIEN: Could be a mess.

All right, Chad, thank you.

MYERS: You're welcome.

S. O'BRIEN: A look this morning at the latest developments out of North Korea and the nuclear crisis there. Secretary of State Condoleezza Rice, as we mentioned, she's now in Tokyo. She's trying to head off a nuclear arms race.

Her mission includes persuading South Korea and China to fully commit to sanctions against North Korea. North Korea shows no signs of backing down this morning. Construction is apparently going on at three sites there today, very similar, in fact, to the activity that led up to last week's nuclear test.

And North Korea's Kim Jong-Il has made his first public appearance since the nuclear test. It was an 80th anniversary celebration of the political movement founded by his father. He didn't talk about the sanctions. He did not talk about a possible nuclear test.

Our coverage of the crisis begins this morning with Aneesh Raman, he's in Tokyo, and Sohn Jie-Ae, she's in Seoul, South Korea.

Aneesh, let's begin with you, good morning.

ANEESH RAMAN, CNN INTERNATIONAL CORRESPONDENT: Good morning, Soledad.

Secretary Rice, calling the U.S.-Japanese alliance stronger than ever, has already met with her Japanese counterpart, the foreign minister here, also with the Japanese defense minister. Tomorrow, she will meet with Japan's prime minister.

Excuse me.

As you mentioned, two key threads to her trip in the region. The first is getting these countries to fully implement the sanctions imposed on North Korea by that U.N. resolution. No tough sell in Tokyo. Japan blasted North Korea with its own bilateral sanctions even before the U.N. took action. Here is where she has a gentle audience.

The tougher audiences come in South Korea and China, countries that have been less than exhaustive in searching cargo coming in to and out of North Korea.

But a key message and the second thread of her trip is to speak to the Japanese people and voice and reaffirm commitment in the U.S.- Japanese defense alliance.

Here's what she said at a press conference just a short time ago.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: The role of the United States is to make certain that everybody, including the North Koreans, know very well that the United States will fully recognize and act upon its obligations under the Mutual Defense Treaty and in defense of our Japanese ally. And I have reconfirmed that that is the American view.

(END VIDEO CLIP)

RAMAN: And that is key, Soledad, as tensions here rise, speculation North Korea could conduct a second test. Japan is looking to the U.S. The U.S. is essentially Japan's defense. Some 30,000 U.S. troops here. And as the people on the streets in Tokyo look at Secretary Rice's visit, they will welcome her standing next to their government in solidarity against the North Koreans, but also reiterating the U.S.' defense commitment here in Japan -- Soledad.

S. O'BRIEN: And it's a real first test for the new prime minister, isn't it?

RAMAN: It is and he's passed, by all indications among the Japanese people, standing firm against North Korea. The only concern they have is that he's standing alone, that China and South Korea aren't on board and that that increases the chance that Japan becomes a prime target for any aggression by North Korea.

So with that they welcome the secretary of state and they hope she can do what the Japanese prime minister hasn't yet been able to get the Chinese and the South Koreans to back fully this sanction regime that has been imposed by the U.N. against North Korea -- Soledad.

S. O'BRIEN: Aneesh Raman in Tokyo for us this morning.

Aneesh, thanks -- Miles.

M. O'BRIEN: In Japan, Secretary Rice finding there is a lot of support for a tough response to North Korea. Her next stop is Seoul, South Korea, where there is a concern too much punishment of the North might have dire consequences.

CNN's Sohn Jie-Ae live from the South Korean capital of Seoul, -- Jie-Ae.

SOHN JIE-AE, CNN CORRESPONDENT: Yes, Miles, the -- Secretary Rice is not expected to get as warm a welcome or easy meetings as she had in Japan. South Korea has its concerns about North Korea because it borders North Korea. It is very concerned about any type of rising tensions here and that any type of tensions could lead to military confrontations which would have a devastating effect not just on North Korea but on South Korea.

This is very much on the minds of South Korean politicians as they talk to Rice. They are eager to show that they are in step with the international committee, but also to show that they are in a position that is unique from any other country in the world at this point -- Miles.

M. O'BRIEN: Sohn Jie-Ae in Seoul, thank you -- Soledad.

S. O'BRIEN: Let's turn to Iraq now where violence is hitting home and it's hitting home hard. Yesterday, 10 U.S. service members were killed in attacks. And at this rate, October could turn out to be the deadliest month in Iraq for the U.S. military in almost two years.

CNN's Arwa Damon is in Baghdad for us this morning.

Good morning, -- Arwa.

ARWA DAMON, CNN CORRESPONDENT: Good morning, Soledad. And that's right, it has been an incredibly deadly Tuesday for U.S. troops operating here. Ten have died in attacks in Iraq's more volatile provinces. The capital, Baghdad, took the lives of four U.S. soldiers as a result of a roadside bomb. Another U.S. soldier killed in the capital due to small arms fire. Just north of Baghdad, in Diyala Province, three more soldiers died as a result of enemy action. And in the western volatile province of Al Anbar, another Marine killed there, again due to small arms fire.

Now this does come as Iraq's Ministry of Interior made an interesting announcement yesterday, saying that it has dissolved two more national police brigades, the first and second brigade. Their commanders have been relieved of duty and given other posts within the ministry.

Also, the ministry announcing that some 3,000 commandos and employees of the Ministry of Interior have been fired. They are accused of crimes such as forgery, bribery, human rights violations and negligence of duty.

This is all part of the new Minister of Interior's, Jawad Bolani, promise that he made when he took office five months ago. Prior to his stepping up and taking office, the ministry had been accused of being infiltrated by death squads and militias. He promised a shakeup and it looks like we're seeing the results right now -- Soledad.

S. O'BRIEN: We're also seeing some bad numbers when it comes to the number of Iraqis who have been killed and the number of Iraqis who have been displaced because of sectarian violence as well.

DAMON: That's right, Soledad, and the number is quite astounding. It was recently announced by Iraq's Ministry of Migration and Displaced People, some half a million Iraqis have been displaced. And in the last four weeks, 100,000 Iraqis displaced all because of this increasing sectarian violence that we are seeing throughout the entire country.

Shia families are moving into Shia communities. Sunni families are moving into Sunni communities. In some cases, it's because they merely fear being the victims of sectarian violence. In other cases, it's because of a militia presence in their neighborhood. And in many cases, it's because these families are receiving direct threats. Many here are now saying that these militias are causing a greater threat to the future of Iraq, to its security, than the insurgency itself -- Soledad.

S. O'BRIEN: Arwa Damon in Baghdad for us this morning.

Thanks, Arwa.

Got more dire news from Afghanistan as well to tell you about. The NATO commander there says mistakes were made. He says those mistakes have helped fuel the resurgence of the Taliban.

The British General Dave Richards says the coalition did not act quickly enough in the aftermath of the war. He says rebuilding the country took too long, it frustrated the Afghan people, gave the Taliban an opening and, according to the general, the coalition has just about six months to make good on the promises or Afghanistan could be lost completely -- Miles.

M. O'BRIEN: Here are the top stories we are following this morning. Secretary of State Condoleezza Rice arrived in Tokyo for talks on North Korea. Mark Foley is expected to name the clergyman who abused him as a teen. And actor Wesley Snipes is indicted on tax fraud charges. A weather update and much more in just a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody.

Here are some of the stories we're following for you this morning.

Secretary of State Condoleezza Rice is in Japan right now for talks, while North Korea might be getting ready for another nuclear test.

And President Bush declares Hawaii a disaster area as residents continue to clean up from that big earthquake.

Ten minutes past the hour, if you're just heading out the door, let's get right to Chad Myers. He's at the CNN Center with the travel forecast for you.

Good morning, -- Chad.

MYERS: Good morning, Soledad.

(WEATHER REPORT)

Miles, back to you.

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

The disgraced former Congressman Mark Foley to reveal the name of the priest who he claims abused him when he was young. Now Foley resigned and retreated to alcohol rehab after those sexually explicit e-mails and instant messages he sent to teenaged congressional pages came to light. He's apparently trying to refute claims the priest abuse story is little more than an excuse for his behavior.

We get more from Susan Candiotti.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): Whether he can prove it is one thing, but Mark Foley's attorney wants skeptics to know his client's allegations are not trumped up.

GERRY RICHMAN, FOLEY'S CIVIL ATTORNEY: It's going to be very clear in the coming days that it is a fact, as opposed to any possible allegations that it's a fantasy or something made up for political purposes.

CANDIOTTI: It was about two weeks ago that Foley first made his bombshell allegation.

DAVID ROTH, FOLEY'S CRIMINAL ATTORNEY: Mark has asked that you be told that between the ages of 13 and 15 he was molested by a clergyman.

CANDIOTTI: But who is the alleged molester and where is he now? The archdiocese wants to know. It says Foley's claims have put a cloud of suspicion over all its priests.

MARY ROSS AGOSTA, ARCHDIOCESE OF MIAMI: Common sense must come in here that we need to know who it is prior to us being able to provide the counseling for that person.

CANDIOTTI: Foley's lawyer says he'll turn over the name at the right time in a -- quote -- "sensitive way."

RICHMAN: Mark Foley is intending to work with the Archdiocese of Miami and greater West Palm Beach for the purpose of revealing the name of the particular priest who is involved so that the archdiocese can then deal appropriately with the issue.

CANDIOTTI: Foley grew up in south Florida. As a youngster, he served as an altar boy. He attended Catholic grade school and high school, but later transferred to a public high.

Foley's lawyer says he's talked with the Palm Beach state attorney's office, but no criminal charges will be filed, the allegations are too old. The alleged abuse happened more than 35 years ago, well past the statute of limitations. His attorney says Foley will accept the archdiocese's offer of free counseling.

Susan Candiotti, CNN, Miami.

(END VIDEOTAPE)

M. O'BRIEN: Now to the investigation. A Louisiana congressman will be in the Ethics Committee hot seat today as the House races to finish its look into the Mark Foley scandal before Election Day.

Dana Bash on Capitol Hill with more.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (on camera): The House Ethics Committee will continue its probe into the who knew what when of the Mark Foley scandal later today, with an important witness, and that's Congressman Rodney Alexander.

The Louisiana Republican sponsored the page who had an e-mail exchange with Mark Foley last year that made the young man so uncomfortable he sent it to an aide to Congressman Alexander saying it was sick, sick, sick. Now Congressman Alexander is apparently the first lawmaker to bring this issue to the attention of the speaker's office. That led to a quiet rebuke by the chairman of the Page Board and the former House Clerk.

Now the committee, which meets in secret, has been working at a breakneck pace. They have several key witnesses left to meet with. But it is still unclear whether or not they will be able to conclude their business before Election Day three weeks from now and decide whether or not anyone in the GOP leadership should have or could have done more to stop Mark Foley.

Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

M. O'BRIEN: The House Majority Leader, John Boehner, is expected to testify in the Foley scandal on Thursday -- Soledad.

S. O'BRIEN: The number two Democrat in the House is apologizing for what some people are calling a racially insensitive remark. House Minority Whip Steny Hoyer was speaking to a mostly black audience when he said that the Maryland Senate candidate Michael Steele has a record of slavishly supporting the Republican Party. Steele is African- American, of course. Slavishly means is very dedicated. Also means like a slave.

Hoyer has now issued the statement says, "I shouldn't have used those words. If Mr. Steele did in fact take offense, let me assure you that none was intended."

Steele's spokesman called Hoyer's remarks insensitive and stupid.

This story and all the day's political news is available on the CNN.com news ticker. You can find it any time day and night, just log on to CNN.com/ticker.

Here's a look at some of the stories we're monitoring for you this morning. The Secretary of State, Condoleezza Rice, in Tokyo for talks, rather, on North Korea. The average Wall Street salary closes in on, guess what, $300,000 a year. And the finalists are named for a vote on a new set of Seven Wonders of the World. Those stories, and much more, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Some of the stories we're following this morning.

Secretary of State Rice is in Japan for talks, while North Korea may be getting ready for another nuclear test.

Veteran CBS newsman Christopher Glenn dead at the age of 68. Glenn was the voice of the children's program in the '70s and '80s, "In the News."

Happening in America. In Kentucky, an Amber Alert for 10-month-old Saige Terrell, shown here with his mother, Renee Terrell. He, his mother and her boyfriend, Christopher Luttrell, missing after authorities discovered the body of a social worker in the Terrell home. Saige was in state custody, and the social worker, Boni Frederick, brought him home for a visit. The social worker was beaten to death.

Eleven communities in northern Louisiana under a state of emergency this morning, powerful winds and torrential rains battered them yesterday, nobody injured, but streets and hundreds of homes flooded. Some towns received 17 inches of rain. That's the most since Tropical Storm Allison hit Louisiana in '89.

In South Carolina, comedian Chris Rock's mother wants to sue the Cracker Barrel restaurant chain. Rose Rock says waiters at a restaurant in that state ignored her because she's black. The Reverend Al Sharpton says he's heard similar stories and now wants to pay for Mrs. Rock's lawyers. Cracker Barrel says it doesn't tolerate discrimination.

In Florida, actor Wesley Snipes in trouble with the law. Snipes indicted for tax fraud yesterday. Federal prosecutors say he tried to cheat the government of $12 million in false refund claims. A warrant was issued for his arrest. Authorities say his whereabouts are unknown.

The good times continue to roll on Wall Street. The numbers are in and brokers, bankers and traders took home an average, get this, average $289,000-plus in 2005. That's up 28 percent over two years. That's big money when you consider the median household income for the rest of us about 35 grand -- Soledad.

S. O'BRIEN: Business news now.

A judge has wiped clean the record of Enron founder Ken Lay.

Andy Serwer is "Minding Your Business" this morning.

That's pretty shocking.

ANDY SERWER, "FORTUNE" MAGAZINE: It is a surprise. And you know a lot of people out there might have mixed feelings about that. But, after all, the man is deceased, and it's a body of law, and we'll get to that in one second.

Federal judge ruled yesterday that Ken Lay's guilty verdict has vacated his conviction of conspiracy and fraud. You may remember he was convicted of 10 counts on May 25 and then died on June 5 in Colorado of heart disease.

Here's what's going on, and his lawyer's, Lay's lawyers cited a 2004 ruling that found the defendant's death, pending appeal, extinguished his entire case because he hadn't had the full opportunity to challenge the conviction and the government shouldn't be able to punish a dead defendant or his estate. And the person who made this ruling was Judge Sim Lake who presided over the entire Enron trial.

This means that the government can't go after Lay's $45 million estate in terms of a criminal proceeding. They may be able to go after it in a civil proceeding, but then there are also other litigants there as well, Soledad, so they would have to get in line. It kind of messes up trying to recoup the funds for investors and employees. But it's such a complicated, tragic case at this point that, you know, what are you going to do, right?

S. O'BRIEN: Gosh, what a mess.

SERWER: Let's talk about the markets yesterday. We slipped back a little bit on the road to 12,000, which we'll get to eventually at some point, maybe not even this year. An inflation report a little bit troubling for the Dow, but of course you know the road to 12,000 or any benchmark is never linear as they say on Wall Street. We're only 50 points away. Inflation in September a little bit higher than anticipated.

And finally, it's earnings season on Wall Street, and a couple of technology bellwethers reported yesterday. Here's the story for you, IBM better than expected, Intel mixed and Yahoo! slightly disappointing. So that is sort of where we stand in terms of technology companies, and a bunch more companies are going to be reporting today as well -- Soledad.

S. O'BRIEN: What do you have coming up?

SERWER: Coming up we have cars and which ones are the most fuel- efficient. Everyone always wants to know that.

S. O'BRIEN: Absolutely.

SERWER: Especially in this day and age.

S. O'BRIEN: You know we're trying to buy a new car and we're actually looking at that.

SERWER: You've got to look at that. Go to "Consumer Reports," ask your friends, check it out online.

S. O'BRIEN: All right, thank you.

Do you know the Seven Wonders of the World? Could you name them?

SERWER: No, maybe a couple of them.

S. O'BRIEN: Maybe three or four of them?

SERWER: Yes.

S. O'BRIEN: Well if you know the Seven Wonders of the World and you are unhappy with the choices, there's a new chance to actually contribute to a new list of the new Seven Wonders of the World. There are 21 landmarks that you can now choose from online. They include Stonehenge in England, the Statue of Liberty, and the only remaining original Wonder of the World, the Pyramids in Giza in Egypt.

SERWER: Egypt. Well, Egypt. Just say Egypt.

S. O'BRIEN: In Egypt. Go to new-7wonders.com, that's the Web site, new7wonders.com. Twenty million people have already voted.

SERWER: That's interesting.

S. O'BRIEN: The results of the survey will be announced already. I'm not sure that you have any ability to actually do anything more than vote and really...

SERWER: And are these natural ones, like the Grand Canyon, or they can be built things?

S. O'BRIEN: It's the list -- Statue of Liberty...

SERWER: Right, so that's obviously...

S. O'BRIEN: ... didn't just appear.

SERWER: Yes. No, it did not.

S. O'BRIEN: Someone built that.

SERWER: Good point. Neither did the pyramids.

S. O'BRIEN: Exactly.

SERWER: Yes.

S. O'BRIEN: That contest is run by a Swiss nonprofit that's dedicated to preserving monuments around the world.

SERWER: Neat.

S. O'BRIEN: Miles.

M. O'BRIEN: You have any nominations yourself?

SERWER: Time Warner Building.

S. O'BRIEN: The Time Warner Building.

SERWER: There you go.

S. O'BRIEN: The home of CNN.

M. O'BRIEN: How about Donald Trump's hair? The comb over, what do you think? That's a wonder.

S. O'BRIEN: I'm not even going to touch that one, thank you.

SERWER: I'm definitely not going to touch that one.

M. O'BRIEN: All right, some of the stories we're following right now this morning for you, Secretary of State Condoleezza Rice stops in Tokyo for talks on North Korea. A British commander says international troops could be in Afghanistan for 20 more years. He warns the Taliban could rise again. And the government proposes a new passport card for travel to Canada and Mexico and the Caribbean. Those stories and more ahead on the AMERICAN MORNING as we continue.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Every time I turn on the news there seems to be some unrest somewhere motivated by both religion and politics.

UNIDENTIFIED FEMALE: I feel religion really has no place in politics.

UNIDENTIFIED MALE: Our government is based off The Ten Commandments. We don't steal. We don't kill.

UNIDENTIFIED MALE: Religion is separate from politics, in my view.

UNIDENTIFIED FEMALE: I think social issues will continue to divide political parties.

UNIDENTIFIED FEMALE: I will not be swayed politically by somebody's religious beliefs.

M. O'BRIEN (on camera): Americans are pretty evenly divided on the subject of religion and politics. Fifty-one percent of us think churches and other houses of worship should share their views on social and political questions. Forty-six percent think they should stay out of politics. With the country split on religion's role in politics, what will the future hold?

(voice-over): As senior fellow at the nonprofit think tank, the Pew Forum, John Green studies faith and politics and how they interact in American society.

JOHN GREEN, SENIOR FELLOW, PEW FORUM: And over the next several elections we'll see religion become even more important, because literally every religious group will be part of the process.

M. O'BRIEN: Green says those groups include rapidly growing populations of Buddhists, Hindus and American Muslims.

GREEN: The United States is so diverse religiously that both the Democratic and Republican parties have to have bigger religious coalitions in order to win elections.

M. O'BRIEN: Green says social issues, such as the war in Iraq, same-sex marriage, abortion and even the environment, will continue to divide us, putting the burden on politicians.

GREEN: One of the critical ingredients for bridging that divide is leadership and how political leaders, or perhaps nonpolitical leaders, come forward with solutions and alternatives that everyone can live with.

(END VIDEOTAPE)

M. O'BRIEN: Good morning to you, it is Wednesday, October 18. I'm Miles O'Brien.

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

Let's get right to the news wall for a look at some of the stories we're following for you this morning.

Secretary of State Condoleezza Rice just wrapping up a news conference in Tokyo where she pledged to cooperate with Japan on swift implementation of sanctions against North Korea.

The commander of British forces in Afghanistan says international troops will be needed in that country for the next 20 years.

M. O'BRIEN: Former congressman Mark Foley will reveal the name of the priest he says abused him. Foley's lawyer is saying he will not press criminal charges against the clergyman.

Five people now dead after the flooding in Texas. A flood warning remains in effect this morning for Houston and parts of Louisiana.

S. O'BRIEN: It's half past the hour. Time to check in with Chad for a look at what's happening in the South.

Good morning. Lots of fog there, huh?

CHAD MYERS, CNN METEOROLOGIST: Yes, a lot of fog all around. Now, airport delays over an hour already in Atlanta. Warm weather, though, as soon as the fog burns off and the sun comes out.

Severe weather across Texas. And a baseball game in a weather- plagued series, Mets get it in today at Shea. Should be temperatures around 60 degrees.

Back to you guys.

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

Here are the latest developments in the North Korea nuclear crisis.

Secretary of State Condoleezza Rice is in Tokyo right now trying to head off a nuclear arms race. Her mission, persuading South Korea and China to fully commit to sanctions against North Korea.

North Korea showing no signs of backing down, meanwhile. Construction under way at three sites in North Korea today. Very similar to the activity that led up to last week's explosion of a nuclear bomb.

And North Korea's leader, Kim Jong-il, has made his first public appearance since the underground explosion. It was an 80th anniversary celebration of the political movement founded by his father. He said nothing about the nuclear crisis.

Our Zain Verjee is traveling with the secretary of state. She joins us on the line now from Tokyo -- Zain.

ZAIN VERJEE, CNN CORRESPONDENT: Miles, one of Secretary Rice's goals here is to get regional powers to implement the U.N. Security Council resolution that essentially slaps sanctions against North Korea. Since the North Korean nuclear test, though, Japan has been feeling increasingly threatened.

Secretary Rice has a message to Japan. She's saying today, don't worry, the U.S. stands with Japan, the security alliance is strong. The U.S., she said, will meet "the full range of security commitments."

The reason that that's important, Miles, is that Japan has this pacifist constitution which basically means that it can't use armed force. So Japan relies on the U.S. security umbrella to defend it from threat. There are also fears since North Korea tested a nuclear device that Japan would want to go nuclear. The Japanese foreign minister said, look, Japan's just not going to do that -- Miles.

M. O'BRIEN: Well, we certainly can understand given the history with Japan, Hiroshima and Nagasaki. But nevertheless, the Japanese, many people in Japan might feel they have to respond that way, and certainly with their civilian nuclear program it wouldn't take much for them to become a nuclear power, would it?

VERJEE: No, it wouldn't take much for them to become a nuclear power at all. But the prime minister, Shinzo Abe, has said dismissively that that is not the route we are going to pursue, even though in the past he has said that he would like to have a reinterpretation of Japan's constitution that would allow them to pursue weapons. But essentially, the U.S. and Japan, though, Miles, really see eye to eye here.

Japan has already imposed unilateral sanctions on North Korea. For example, like banning imports and exports, banning North Korean ships, Japanese ports. The real challenge for Secretary Rice is going to be China and South Korea.

Are they going to come on board? Are they going to be open to the idea in the U.N. Security Council resolution to really strongly implement and take action and inspect North Korean ships? That's really the key.

Secretary Rice said that the discussions are under way. The U.S. has ideas on exactly how to inspect that cargo. But China and South Korea are concerned. They don't want the situation where they're checking ships and there ends up being a military skirmish, or pushing the regime so hard that it collapses, which causes additional problems, massive problems for the region.

M. O'BRIEN: Zain Verjee in Tokyo. Thank you very much.

Let's get right over to Seoul, South Korea, where as Zain mentioned, there's some concern that punishing North Korea too much could lead to some dire consequences.

CNN's Sohn Jie-ae is our Seoul bureau chief.

Jie-ae, give us a sense of what the big concern here is. I mean, for one thing, you have a tremendously strong and powerful army, the North Korean army, massed very close to where you're standing right now.

SOHN JIE-AE, CNN SEOUL BUREAU CHIEF: We certainly do. I mean, they are just an hour and a half away by car. And South Koreans have had that for over half a century. And so South Korea has been under North Korean threat for a long time.

But here's what -- what South Koreans are concerned about. They are concerned that if the -- if the United States and the global powers pressure North Korea too hard, North Korea could lash out, and the people that they would lash out at are not necessarily Japan or the United States. They would be South Korea.

They would be people that are facing them across the border. And that would have consequences not only for North Korea, but for the vibrant economy of South Korea.

So there is a concern here, very much, that too much pressure would -- would -- would have an effect, a dire effect on South Korea. And also, South Korea in recent years has felt that it has made progress in trying to reconciliate (sic) with North Korea and they don't want all of this to go away because of North Korea's nuclear ambitions -- Miles.

M. O'BRIEN: Well, the other concern, too, is if for some reason this leads to the toppling of the Kim Jong-il regime, tremendous issue with a potential refugee crisis there. It would have a direct impact on the south, wouldn't it?

SOHN: Definitely. South Korea looked at the -- at the German model very closely, and many studies have shown that currently the South Korean economy could not bear the burden of trying to get an impoverished North Korea back on its feet, on its current economic status.

So, South -- North Korea going down means that it's a sinking ship not just for North Korea, but for South Korea, as well. So it's a -- it's a tremendous point of concern here -- Miles.

M. O'BRIEN: CNN's Sohn Jie-ae in Seoul, South Korea.

Thank you very much -- Soledad.

S. O'BRIEN: Happening "In America" this morning, in Texas, the former Soviet president, Mikhail Gorbachev, told a group of students that that proposed fence between the U.S. and Mexico, it's not a good idea. During a lecture at the University of Texas, Gorbachev said fixing the border requires new ideas and cooperation.

You might remember President Reagan urged Gorbachev to "tear down that wall," the Berlin wall, almost 20 years ago.

The State Department is considering a plan to put another card in everybody's wallet. Americans could use the card in place of a birth certificate or a passport when traveling to Canada or Mexico or Bermuda. It would immediately confirm a person's identity when it's scanned by border guards. The card would probably cost about $45.

A California judge has rejected a lawsuit that could have cost O.J. Simpson very big money. The suit would have allowed Fred Goldman to take money that Simpson makes during his public appearances. Goldman's son Ron was murdered, alongside Simpson's ex-wife back in 1994. And O.J. Simpson still owes the Goldman family millions of dollars as part of a wrongful death lawsuit.

Cleanup goes on in eastern Tennessee this morning. You can see wild weather causing quite a mess there. Winds, including a gust of 106 miles an hour -- it was clocked at one point -- snapped power lines, downed trees. One of the trees fell on a camper, injured a 6- year-old boy who was inside.

Two feet of snow on the ground this morning in the Colorado Rockies. That's hampering the search for two missing hunters today.

Some people are enjoying the snow. It's made roads treacherous, though.

Jeremy Hubbard of our affiliate KDVR is reporting for us from Idaho Springs in Colorado.

(BEGIN VIDEOTAPE)

JEREMY HUBBARD, REPORTER, KDVR: It is a pretty amazing amount of snow. You can see it stacked up on the tables and the chairs at this outside patio in Idaho Springs, Colorado. We just stuck this ruler in and measured 10 inches exactly.

A messy night Tuesday night in the Colorado mountains. We witnessed a 13-car pileup. But we also witnessed a lot of people actually enjoying this stuff.

UNIDENTIFIED FEMALE: And a car was trying to pass us, and hit some ice, and skid back into us.

HUBBARD (voice over): Everywhere you look...

UNIDENTIFIED FEMALE: We did sort of a 360 and went in the ditch.

HUBBARD: ... another car is off the road.

UNIDENTIFIED FEMALE: But I was afraid the car was going to turn over. HUBBARD: This truck did. One of several crashes backing up I- 70.

UNIDENTIFIED FEMALE: It's beautiful. You just have to go very slowly.

HUBBARD: The wrecks and heavy snow leaving some drivers stuck for an hour or more. The interstate shut down in both directions due to these miserable conditions.

UNIDENTIFIED MALE: It was kind of all the way down.

UNIDENTIFIED MALE: I was pretty stoked on the conditions.

HUBBARD: But a driver's misery is a snowboarder's joy.

UNIDENTIFIED MALE: Look at this powder, man. This powder is ridiculous. Couldn't have asked for a better day.

UNIDENTIFIED MALE: Just glad there's snow. You know, it's October. We weren't kind of -- we weren't really sure what was going to be going on.

HUBBARD: Loveland getting dumped on just days after opening for the year.

UNIDENTIFIED MALE: They got a lot of snow. A lot more than I was expecting. I was looking to see a lot more dirt patches, honestly. But I didn't see any of them. It's pretty nice.

HUBBARD: They say snow before Halloween means a snowy rest of the ski season. Good news if you're trying to ski on it. Not so good if you're trying to drive on it.

(on camera): The Colorado Department of Transportation says Interstate 70 is back open this morning, but they are still plowing, still cleaning up. No major injuries to report, but you can tell there's a lot of melt-off to be done right here.

In Idaho Springs, Colorado, Jeremy Hubbard for CNN.

(END VIDEOTAPE)

S. O'BRIEN: According to Chad there's still a chance of snow in the area today. It's snowing there right now -- Miles.

M. O'BRIEN: More to come. The top stories we're following this morning for you: President Bush declares that Hawaiian earthquake a major disaster; Saddam Hussein may be regaining influence in Iraq -- we'll explain that -- and we'll look at why Asia may be on the verge of an arms race.

All that and more ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Some of the day's top stories we're following for you.

Former congressman Mark Foley says he's going to name the priest who he says molested him when he was a teenager.

And President Bush declares Hawaii a disaster area, as residents clean up after the magnitude 6.7 earthquake.

M. O'BRIEN: Here's a look at what CNN correspondents all around the world are covering today.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT: I'm Aneesh Raman in Tokyo.

The secretary of state arriving in Japan today, the start of a four-day, four-nation tour through the region. Key on her agenda is rallying these countries to implement all of the sanctions imposed on North Korea in that U.N. Security Council resolution.

No real debate here in Japan. Japan was ahead of the curve, issuing bilateral sanctions before the U.N. took action.

The key part of her trip to Tokyo, at least, was reiterating to the Japanese people the U.S.' commitment in the defensive alliance it has. Japan really has the U.S. as its defense. Some 30,000 U.S. troops are here. Japan has a pacifist constitution and is very worried about a nuclear North Korea, especially with the news that North Korea could launch a second nuclear test at any day.

From here, the secretary of state heads to South Korea, China, and then to Russia.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: I'm Arwa Damon in Baghdad. Tuesday was a deadly day for U.S. troops operating here. Ten were killed in attacks in Baghdad, to the north in Diyala Province, and in that volatile Al Anbar Province. Also, 20 Iraqis were wounded in a number of explosions in the capital Baghdad alone.

Many here wondering when this war will come to an end.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: I'm Matthew Chance in Moscow.

The Israeli prime minister, Ehud Olmert, is set to meet the Russian president, Vladimir Putin. The talks expected to focus on Iran's controversial nuclear program. Israel is deeply concerned about the possibility of the Islamic republic using that program as cover to develop nuclear weapons. Russia is helping Iran build its first nuclear reactor.

There's also tension between Israel and Russia about the high- tech Russian weaponry supplied to Iran and Syria, apparently some of which found its way into the hands of Hezbollah and were used against Israeli forces in Lebanon earlier this year.

(END VIDEOTAPE)

M. O'BRIEN: For more on these or any of our top stories, log on to our Web site at CNN.com.

It's about quarter of. You've got places to go and people to see. Chad Myers is the person you should check in with first.

Hello, Chad.

MYERS: Good morning, Miles.

People are still waiting for flights from yesterday across parts of the East Coast. And this morning it's not a lot better. There's a lot of fog developing in the clear skies from overnight.

Here are the delays, if you are flying out for today.

From Newark, at 15 minutes. Back into D.C. and Dulles, because of the dense fog, over an hour for you. Philadelphia probably approaching an hour rather quickly this morning.

Back to the Midwest, absolutely clear. No problems at all through the Midwest, even though a couple showers in St. Louis. That won't slow you down at all.

But Atlanta now already 90 minutes. Orlando could get 30 minutes or so with some fog and some storms later today. And Charlotte, we're expecting you to go down rather quickly for over one hour delays.

Some of the visibility across the southeast less than eighth of a mile. So maybe not only problems getting out of the airport, maybe problems getting to the airport if you're driving, as well.

Back to you guys in New York.

M. O'BRIEN: Thank you, Chad.

Well, we've all accidentally broken something valuable, maybe a dish or a piece of furniture. This one might take the cake.

Take a look at Picasso's "Le Reve" -- probably should do a little more saliva with that -- "Le Reve". That means "The Dream". It's worth $139 million.

Las Vegas hotel magnate Steve Winn probably wishes it was -- a dream, that is. He was showing it off last month, gesturing with his hands as he does seen there. He smashed his elbow right through it.

S. O'BRIEN: Oh, no! M. O'BRIEN: Made a hole the size of a slot machine token. The writer Nora Ephron was there. She says it made a terrible noise, to say the least.

Winn had just closed a deal to sell it for $139 million. That was a record. A $4 million profit for him. The deal is off.

S. O'BRIEN: Yes, people don't love artwork with holes in it.

M. O'BRIEN: It's not so good. But he's going to repair it. He's going to repair it.

S. O'BRIEN: It goes for less.

M. O'BRIEN: Anyway...

S. O'BRIEN: All right.

Well, some of the top stories we're following for you this morning -- heavy snow in Colorado covering roads, complicating the search for two missing hunters today. We'll update you on that.

Also, Mark Foley is expected to name the priest that he claims abused him when he was a teenager.

Much more news in a moment. We're back in a second.

(COMMERCIAL BREAK)

S. O'BRIEN: Condoleezza Rice's visit to Japan comes as North Korea may be preparing for another nuclear test.

Meanwhile, North Korea's neighbors may be on the verge of building their own nuclear arsenals. And most alarming is just how quickly that could happen.

CNN's Brian Todd has our report.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice over): Torches and fireworks in Pyongyang. Another occasion for North Korea to take the world stage, as we get stronger indications of a second possible nuclear test. If that happens, experts warn an Asian arms race could follow.

JON WOLFSTHAL, CENTER FOR STRATEGIC & INTERNATIONAL STUDIES: Japan is often at the top of most people's watch list because they do have an advanced nuclear power program, a peaceful program for energy production. And it's believed they could build a nuclear weapon in a matter of months.

TODD: But analysts believe Japan may hold back for political reasons. The new prime minister has reinforced the government's stance against nuclear weapons. And the nuclear taboo in Japan since Hiroshima is still a strong part of the national fabric. Next on the list, weapons experts say, South Korea, possibly one to two years away from being able to make a workable nuclear bomb. Then, Taiwan. Same timetable.

WOLFSTHAL: Taiwan, in fact, had a secret effort to build a nuclear weapons program back in the early 1980s. And when the U.S. government found out about it, they forced Taiwanese government to shut it down.

TODD: Taiwan would hold back, analysts say, for fear that China would attack if it goes nuclear. Most experts believe the Asian powers won't have a knee-jerk reaction to a second North Korean test. But they say other nations in another dangerous region are watching.

MICHAEL RUBIN, AMERICAN ENTERPRISE INSTITUTE: North Korea gets a nuclear bomb, so now Iran figures that it also has a right to. Iran develops a nuclear bomb, or nuclear power, and suddenly Turkey, Saudi Arabia, Egypt and even Yemen are talking about developing nuclear programs.

TODD (on camera): One of them already is. Within the past few weeks Egypt announced it may pursue nuclear energy for civilian purposes.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

M. O'BRIEN: Some of the stories we're working on this morning for you.

Secretary of State Condoleezza Rice in Tokyo for talks on North Korea.

Plus, the government releases a new list of cars that get the best gas mileage. A lot of hybrids on that list. We'll have it for you in just a moment.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Here's a look at some of the day's top stories we're following for you.

Secretary of State Condoleezza Rice in Japan for talks while a defiant North Korea might be getting ready for another nuclear test.

And Mark Foley to name a priest the former congressman says abused him as a teenager.

M. O'BRIEN: Well, which cars are going to give you the biggest bang for your buck at the gas pump? A question on a lot of people's minds this morning.

Andy Serwer has the list. Hello, Andy.

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Hello, Miles.

Hybrids hitting on all cylinders. Not a big surprise.

The 2007 list for the most fuel-efficient cars from the EPA and the DOE, the Department of Energy, out this morning. And they're hybrid. They're made by Japanese automakers. And let's check out the list.

Number one, the Prius, which, of course, is the name people most associate with hybrids. Sixty miles to the gallon...

M. O'BRIEN: It's like the aspirin of hybrids. You know?

SERWER: Yes. That's right.

M. O'BRIEN: It becomes generic almost.

SERWER: The Kleenex of...

M. O'BRIEN: Yes.

SERWER: Sixty and 51.

And then the Honda Civic hybrid; the Toyota Camry, which, of course, just rolled off the line, the first one last week. Remember we told you about that.

There's a Ford.

M. O'BRIEN: Ah, good.

SERWER: Made by a U.S. automaker.

M. O'BRIEN: Detroit's in there somewhere.

SERWER: And then there's the Toyota Yaris, which is not a hybrid, but that's basically a shoebox on wheels. It's a very, very small car.

M. O'BRIEN: What about diesels? A lot of people have been talking about diesels. They almost match these numbers. You know? It's interesting.

SERWER: Yes, but not quite.

M. O'BRIEN: Yes.

SERWER: I mean, they're five miles per gallon away. And it's interesting. You see how the city is better than the highway? That's because the engine is more efficient, the hybrids in the city when they go back and forth like that.

M. O'BRIEN: Right. Right. SERWER: Another story we want to tell you about.

Google is going solar. They announced yesterday that they're going to be converting to solar power at their Mountain View, California, campus. Such that by early 2007, 30 percent of the company will be powered by solar.

It's said to be the biggest solar project by any U.S. company, 9,200 solar panels. Enough electricity for 1,000 homes in California.

M. O'BRIEN: Boy, and it's worth pointing out Google is a big user of power because of all its computers.

SERWER: Servers.

M. O'BRIEN: Servers.

SERWER: Powering the servers.

M. O'BRIEN: Yes. Powering...

SERWER: You need a lot of juice. And that's right. So they're changing over.

M. O'BRIEN: All right. What else you got coming up?

SERWER: We're going to be talking about Ken Lay and some interesting and amazing and astonishing developments in a courtroom down in Houston yesterday.

M. O'BRIEN: All right. Thank you, Andy.

SERWER: You're welcome.

S. O'BRIEN: All right. Question for you guys.

If a computer has a really good security system, there is, no matter what, one thing that can break in. One thing. No matter how great your security system is.

Do you know what that is?

M. O'BRIEN: You're supposed to know what your password is.

S. O'BRIEN: That is absolutely right. Actually, a new study found exactly that.

SERWER: Yes, that's amazing.

S. O'BRIEN: They found that one in three people write down their passwords.

M. O'BRIEN: Of course.

S. O'BRIEN: And probably stick it right there on their computer.

SERWER: And put it right there. Right there, yes.

M. O'BRIEN: Or do a text file. You know.

S. O'BRIEN: And because of that, all the extra security systems that they're putting in place, their company spends tons of money on, not working.

SERWER: Yes.

S. O'BRIEN: Because that cannot be stopped.

SERWER: It's only as good as how smart the employee is, right?

S. O'BRIEN: So this new study -- yes, exactly. The new study...

M. O'BRIEN: But how do you remember them all?

S. O'BRIEN: Well, that's...

M. O'BRIEN: You know? How do you remember them all? There are too many.

S. O'BRIEN: That's why the new study suggests -- may I? The new study suggests that actually they should use biometrics, like fingerprinting or using your eye retina scan, to identify people before they log in to their computers, as opposed to the stupid password anyway.

M. O'BRIEN: Amen. I like that idea.

S. O'BRIEN: There is a theory that doing that might even cost less than hiring a staff full of people that could actually remember their passwords.

M. O'BRIEN: Well, and having to reset the thing. Think about all the time you spend just trying to reset the darn password.

S. O'BRIEN: You're preaching to the choir, man.

M. O'BRIEN: All right.

S. O'BRIEN: I hear you.

M. O'BRIEN: OK.

S. O'BRIEN: Let's get a check of the top stories on CNN.com this morning.

(BEGIN VIDEOTAPE)

S. O'BRIEN (voice over): Actor Wesley Snipes is a wanted man, and it's not for a movie role. Snipes was indicted on eight counts of tax fraud on Tuesday. He's accused of cheating the government out of $12 million by filing false claims for refunds. He could face up to 16 years in prison. Officials have issued a warrant for his arrest. Madonna speaking out. Says she followed the law when she took custody of a 1-year-old Malawian boy. She hopes to make her adoption permanent after an 18-month review process.

And a new report says the benefits of eating seafood far outweigh the risks. Eating seafood is good for your heart. The risks, though, could cause cancer because of environmental contaminants. Pregnant women and children still need to watch how much fish they eat because of mercury.

For more on these stories, log on to our Web site at CNN.com.

The next hour of AMERICAN MORNING starts right now.

(END VIDEOTAPE)

S. O'BRIEN: And welcome back, everybody. It is Wednesday, October 18th.

I'm Soledad O'Brien.

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

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