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American Morning

Bush's Indonesia Visit; Anti-Bush Protests; The Fight For Iraq; Hostage Families; Minding Your Business; YouTube & The Police

Aired November 20, 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: On alert. President Bush in Indonesia right now and protests and fears of suicide bombings there.
SOLEDAD O'BRIEN, CNN ANCHOR: Back to the draft? It's one idea being kicked around again, along with three different plans the Pentagon is said to be considering for the war in Iraq.

M. O'BRIEN: No laughing matter. The actor who played Kramer on the "Seinfeld" show under fire for a tirade of racial slurs in his stand-up act. Reaction and some possible fallout ahead on this AMERICAN MORNING.

Good morning. It is Monday, November 20th. I'm Miles O'Brien.

S. O'BRIEN: And I'm Soledad O'Brien. Thanks for being with us.

We begin in Indonesia this morning where security for President Bush is very tight, obviously. Here's what's new this morning. The president arrives in Bogor where he's going to meet with the president of Indonesia. It's going to happen within the hour.

President Bush's trip to the world's largest Muslim nation is expected to last less than six hours. The secret service is girding for thousands of protesters on the streets, chanting and carrying anti-American signs and anti-Bush signs, too.

And police are keeping a close eye on the crowds after unconfirmed reports that a suicide bomber plans to attack during President Bush's visit. We've got complete coverage of the president's trip to Indonesia with CNN's Ed Henry and Atika Shubert. Both are in Bogor this morning. Let's begin with Ed.

Good morning, Ed.

ED HENRY, CNN CORRESPONDENT: Good morning, Soledad.

I'm outside the presidential palace now. The president meeting with his Indonesian counterpart. They're going to have a press conference later this hour. This is the final leg of the president's trip through Asia.

He started out this morning in Vietnam, ringing the bell there for the stock exchange in Ho Chi Min City. The president had faced criticism in Hanoi earlier in the weekend that he had not gotten out enough with ordinary people. So he also mingled with some children outside a museum. They were performing traditional dances. He was hamming it up.

But a much more hostile reception here in Indonesia. As you noted, a Muslim country. There is some anger about the U.S. invasions of both Iraq and Afghanistan.

And the president also may face some tough questions at that press conference later this hour. One topic may be the awkward way that the APEC Summit ended this weekend, specifically on the issue of North Korea. It ended with the Vietnamese president coming out with an oral statement attacking North Korea's nuclear program.

But the White House had been pushing before this summit for a joint statement by all 21 leaders. A written statement. That raised questions that maybe everyone was not on the same page. The White House insisting that they're OK with that oral statement.

Another topic could be the deep unpopularity the president is facing around the world. You mentioned those protests. To give you an idea of the security around the president right now, he is not going to sleep in Indonesia tonight. We started in Ho Chi Min City, the president, as well as the press corps. A three-hour flight here to Indonesia.

But he's not going to sleep here. So, instead, we're going to have a 13-hour flight to Hawaii this evening, cross 17 time zones just so the president doesn't sleep here. He touches down in Hawaii instead. Some extraordinary measures to make sure he's safe.

Soledad.

S. O'BRIEN: Ed Henry for us this morning in Bogor. Thank you, Ed.

Miles.

M. O'BRIEN: Indonesia is home to more Muslims than any other nation in the world and the president is not very popular there. Yesterday, 13,000 protesters were in the streets of Jakarta chanting "go home Bush" and carrying signs calling him a war criminal. CNN's Atika Shubert is in Bogor with the latest.

Atika.

ATIKA SHUBERT, CNN CORRESPONDENT: Miles, those protests continued today. It's evening now. The call to prayer has sounded and most of those protesters have gone home, but not before giving an angry message to President Bush.

More than 1,000 turned out on the outskirts of the city, demanding that the president turn around and return to the U.S. Holding up signs that said "Bush is a terrorist." Also signs that said "wanted, war criminal." Their intention was to march up to the presidential palace where President Bush is now. They didn't get very far, however. Riot police were there to turn them away about a mile away from here. They delivered what was a letter to President Bush explaining why they were holding the protests, holding him accountable for human rights abuses in Iraq, war crimes also in Iraq and in Afghanistan, as well. Also mentioning Guantanamo and Abu Ghraib. Clearly they said they were trying to show Muslim solidarity with their Muslim brothers in other parts of the world.

Miles.

M. O'BRIEN: Atika Shubert, thank you very much.

The president planning a news conference live here on AMERICAN MORNING. You'll see it at 6:55 a.m. Eastern Time.

Soledad.

S. O'BRIEN: Here at home there's some new debate about the fight in Iraq, including a new call to bring back the military draft. New York Congressman Charles Rangel says America's all-volunteer military is stretched thin because of commitments in Iraq and Afghanistan and he says he plans to propose the draft measure early next year as the incoming chairman of the House Ways and Means Committee. Listen.

(BEGIN VIDEO CLIP)

REP. CHARLES RANGEL, (D) NEW YORK: I think at a time when national security is so important, having our young people commit themselves to a couple of years in service of this great republic, whether it's our sea ports, our airports, in schools, in hospitals, and at the end of that, to provide some educational benefits is the best thing for our young people and the best thing for our country. I will be introducing that bill as soon as we start the new session.

(END VIDEO CLIP)

S. O'BRIEN: Congressman Rangel is a Korean War veteran and he's unsuccessfully sponsored similar legislation before.

And the former secretary of state, Henry Kissinger, is now saying that an all-out military victory in Iraq is simply not possible. Kissinger spoke out on the BBC, saying the kind of win that President Bush has been hoping for more than likely will never happen.

(BEGIN VIDEO CLIP)

HENRY KISSINGER, FORMER SECRETARY OF STATE: If you mean by clear military victory, an Iraqi government that can be established, new directions (ph) across the old country that gets civil war under control and sectarian violence under control, in a time period that the political processes of the democracies will support, I don't believe that is possible.

(END VIDEO CLIP)

S. O'BRIEN: Kissinger says that the choice is no longer between one or two extremes, all-out military victory or complete withdrawal. M. O'BRIEN: But inside the Pentagon, there are actually three options in play right now reportedly. "The Washington Post" reporting a key panel of experts there calling for three options, go home, go big, or go long. The go home option, a speedy withdrawal of U.S. troops. The go big option, send in several hundred thousand more troops. The go long option, cutting combat troops while increasing efforts to train Iraqis and staying longer. "The Post" report says that that last choice is the choice that seems to have the most traction right now.

And a human rights group says the Saddam Hussein trial was unfair. Arwa Damon from Baghdad with more.

Arwa.

ARWA DAMON, CNN CORRESPONDENT: Miles, good morning.

First, some breaking news to tell you about. The convoy belonging to Iraqi's deputy health minister came under attack in central Baghdad. He was not in the convoy. Two of his bodyguards were wounded.

Now Iraq has two deputy health ministers. Both have come under attack in less than 24 hours. Yesterday Ammar al-Saffar was kidnapped from his home when six vehicles filled with armed gunmen who were masquerading as Iraqi police and as government officials kidnapped him from his him. Again, two attacks against both of Iraq's deputy health ministers in less than 24 hours.

Now back to your question about the trial of Saddam Hussein. Human Rights Watch issued that report and called the trial "fundamentally unfair" and unsound. They stated that the proceedings were so marred with flaws that the verdict was unfound.

Additionally, they also said that the prosecution undermined a number of international laws, including the right to an impartial court, the presumption of innocence and the ability to prepare a defense and cross-examine the witnesses. The report also directly accuses the Iraqi government, and Prime Minister Nouri al Maliki, for interference in the court and for declaring Saddam guilty before the verdict was announced.

Miles.

M. O'BRIEN: So what happens next after the trial? Does this have any real impact on the judicial system there?

DAMON: Well, Miles, we've heard this before. We've heard reports from Human Rights Watch. We've heard reports from a number of other organizations that have been monitoring this trial. We've heard it from the defense team ever since these proceedings began. So far none of these have impacted how things have developed. The Iraqi government still stands by its statement that it was a fair trial and that there was no interference whatsoever.

Miles. M. O'BRIEN: Arwa Damon in Baghdad, thank you.

Soledad.

S. O'BRIEN: The families of those four missing American security guards are waiting for word as coalition forces comb southern Iraq for their loved ones. The four were kidnapped last Thursday when their convoy was ambushed by gunmen wearing Iraqi police uniforms. CNN's Dan Lothian spoke with the families of two of the missing men, Jonathon Cote and Paul Reuben, as they've been waiting and hoping.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT: Family members of two of the missing American contract workers in Iraq are hoping that they will soon get some good news. Here in the Buffalo area, there's the family of 23-year-old Jonathon Cote, who served with the 82nd Airborne Division in Afghanistan and Iraq. He returned as a private security guard last summer. His family tells CNN, they continue to request prayer and support from all concerned.

In Minneapolis, there's the family of 39-year-old Paul Reuben. They also wait for word. Reuben had been concerned about the dangers of his job and his family says he was planning to leave soon.

Both men were working for the Crescent Security Group escorting a convoy last Thursday when, along with two other Americans and an Austrian on their team, were abducted. Both families say they continue to stay in touch with the U.S. State Department, but so far no word as to their whereabouts. Meantime, on the ground in Iraq, troops continue to hunt for the missing.

Dan Lothian, CNN, Buffalo.

(END VIDEOTAPE)

S. O'BRIEN: Coming up this morning, a new report on that deadly arson fire in southern California. We'll tell you about the horrific scene that those five firefighters encountered before they were killed.

Also, it's scrub down for the latest sick cruise ship. Hundreds of passengers get a virus. A few are still in the hospital.

And what is it worth to you to come home with the hottest holiday gift? The wait's long. At times it can be dangerous. We'll tell you straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. Here's a look at some of the morning's top stories.

President Bush is in Indonesia right now. Security is extremely tight. Rain, though, helping tamp down any of those protests we've been seeing. And New York Congressman Charlie Rangel says one again he's going to try to bring back the military draft. The Bush administration has said there's no need for the draft.

Thirteen minutes past the hour. If you're about to head out the door, let's first check the forecast. Rob Marciano is in for Chad.

Hey, Rob, good morning.

(WEATHER REPORT)

M. O'BRIEN: Happening in America this morning.

In Florida, cleanup for a Carnival cruise ship infected with a highly contagious intestinal virus. Nearly 700 passengers and crew members suffering gastrointestinal distress, shall we say, after the norovirus spread through the ship during a 16-day transatlantic voyage. Federal health officials are overseeing that scrub down.

Opponents of same-sex marriage in Massachusetts are welcoming Governor Mitt Romney's call for an amendment banning it. He says he'll ask for a court order to a ballot measure if state lawmakers don't act on the issue in January. The Massachusetts State Supreme Court approved same-sex marriage in 2003.

New details on the arson that killed five California firefighters. They were hit with 90 foot high wall of flames last month. A report on the Esperanza blaze said strong winds and sloping terrain created overpowering conditions. The report will be used to train other firefighters.

Outside Chicago, an autopsy confirms a police bullet killed the man who asked officers to shoot him. His death ended a four and a half hour standoff at a hospital on Saturday. The armed patient was holding another patient hostage. Police say they fired after the man aimed his gun at them.

At least nine Fox affiliates are refusing to air a two-part interview with O.J. Simpson promoting his new book "If I Did It." It's Simpson's account of how he would have killed his ex-wife, Nicole Brown, and her friend, Ron Goldman, if he had committed the 1994 murders.

And nothing Wii about the lines for the launch of Nintendo's new Wii video game system. In New York, more than 1,000 gamers lined up in Times Square over the weekend to be among the first to take the Wii home. Stores say Wii sales were even higher than those for Sony's PlayStation 3 launched early last Friday.

S. O'BRIEN: And you know they'll be looking at those numbers.

M. O'BRIEN: They will. More boxes and a lower price.

S. O'BRIEN: Right. The lower price is going to be key, I think.

M. O'BRIEN: I suspect they'll do well with that. S. O'BRIEN: Ahead this morning, caught on tape. Amateur video appears to catch police in the act. We'll tell you how it's changing the way the cops are doing their jobs.

And we're "Minding Your Business" just ahead this morning. If you plan a drive home this Thanksgiving, we'll tell you exactly what kind of prices you can expect to pay at the pump. That's ahead. Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Well, smoke it if you can lift it, I guess. How about lighting up the world's longest cigar, 101 feet long and 53 pounds, about 75 hours to roll it in Tampa. The old record, a 66 foot stupor stogie stuffed in Havana last year. It's just a cigar. Just a cigar.

S. O'BRIEN: Yes, it looked like they had at least 10 people helping roll that thing.

Stocks are heading into this quiet trading week on a high note. Eamon Javers from "BusinessWeek" is "Minding Your Business" for us this morning.

Nice to see you.

EAMON JAVERS, CNN CORRESPONDENT: Nice to see you guys.

S. O'BRIEN: Long time no see.

JAVERS: Yes, long time no see, indeed.

It is going to be a slow week this week on the markets. We're looking at a Thanksgiving slow week and expecting slow consumer spending but we're looking ahead to Black Friday. Whether or not we're going to see some of those big numbers in shopping on Friday when people start to really hit the Christmas season.

M. O'BRIEN: Do people really do that anymore, though? Are they on the web buying other ways? They really get up early and shop on Friday, huh?

JAVERS: Yes, people like that tradition, going out, hitting the malls, doing it in person. You know, you've got to really be there and feel the stuff in order to really shop.

M. O'BRIEN: Do you do that?

S. O'BRIEN: I don't. But I watch people do it. Yes. All the stores open at 6:00 a.m. or something, right? All the big super stores. The Targets and the Wal-Marts.

JAVERS: Yes, and people get up early and they wait in line and they really go out and do it.

S. O'BRIEN: I'm an online shopper. JAVERS: Yes.

We're going to look and see whether we're going to get that year- end rally that people always expect on Wall Street. That is one of the things we expect. Toward the end of the year, stocks traditionally go up a little bit. This year, there's some question about whether or not we're going (ph) up in the season.

M. O'BRIEN: Might have already happened.

S. O'BRIEN: Right, a rally after the rally.

JAVERS: Might have been a summer end rally here.

M. O'BRIEN: Yes.

JAVERS: We're also looking at the markets last week. The Dow up slightly, 1.9 percent. S&P up 1.47 percent. The Nasdaq up 2.35 percent.

Gas prices -- this is an interesting one if you're going to be hitting the road this Thanksgiving week -- we're looking at up about five cents a gallon the average for self-serve regular. Now about $2.23 a gallon. So things are getting a little bit more expensive if you're going to be driving this week.

M. O'BRIEN: Over the river and through the woods a little more expensive, huh?

JAVERS: That's right.

M. O'BRIEN: All right, what you got next?

JAVERS: Well, we're going to talk about Yahoo!'s peanut butter manifesto. And I'll explain what the heck that is when we're back.

M. O'BRIEN: All right. We'll look forward to that, Eamon. See you in a little bit.

Well, you can call it the next generation's Rodney King moment happening all over southern California. In recent weeks, home video has captured police with suspects, the video quickly making it to the Internet, seen by thousands around the world. L.A.'s top cop is now responding and Peter Viles has the story.

(BEGIN VIDEOTAPE)

PETER VILES, CNN CORRESPONDENT, (voice over): At UCLA, a commotion caught on tape. A student is tasered by campus police after refusing to show his I.D. Nearly a million people have seen the video on the website YouTube. This incident at an anti-illegal immigration rally in L.A. in July, also posted on YouTube. So was this arrest in Hollywood in August. A neighbor taped it. Veteran police watchers say all these videos, seen by so many, are changing police behavior.

JOE DOMANICK, CRIMINAL JUSTICE EXPERT, U.S.C.: Before, police officers could simply deny eyewitness accounts or they could simply deny what a suspect who had been roughed up or abused had to say. But now with these cameras, it's very difficult to deny what's right in front of your eyes.

VILES: No city knows better than Los Angeles the power of video. It was these images, the 1991 beating of Rodney King, that divided the city, leading to riots that killed 52 people. William Cardenas, the man being beaten in this video, has been released from jail and is suing the Los Angeles Police. His supporters say the video is what freed him.

JOAQUIN CIENFUEGOS, COP WATCH LOS ANGELES: They would have brushed this brutality under the rug and William Cardenas would still be in jail today. We forced the system and the institution of the LAPD to take a step back and be on the defensive.

VILES: The police department is investigating the Cardenas arrest and denies that it handles cases differently if they are caught on tape.

CHIEF WILLIAM BRATTON, LOS ANGELES POLICE DEPARTMENT: This vigilance, your vigilance, your attention, nothing wrong with it, because I get to tell a story that I think, by and large, is a story of transparency, a story of process, a story of commitment on the part of our officers and a story going where the truth will take us. So I have no problem with all this attention.

VILES: Attention now also on UCLA's campus police where investigating an incident that the whole nation can now watch.

Peter Viles for CNN, Los Angeles.

(END VIDEOTAPE)

S. O'BRIEN: Coming up this morning, protests around President Bush's visit to Indonesia. We're live at his press conference this morning.

And the U.S. government ordered to pay up. We'll tell you why an Iranian man may soon own a former U.S. embassy.

Plus Michael Richards accused of going on a racist tirade on stage. The controversy surrounding the former "Seinfeld" star straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Breaking news this morning. President Bush is in Indonesia amid protests, and also possible terror threats. Got a live news conference straight ahead this morning.

M. O'BRIEN: Ultimatum. Iran threatening to give away America's old embassy. Why the site of the 1979 hostage crisis could be the backdrop for a new diplomatic flare-up.

S. O'BRIEN: And call it comic disbelief. The man who played Kramer on "Seinfeld" launches into racial slurs in a standup act. Now he's trying to backtrack on this AMERICAN MORNING.

Welcome, everybody. It's Monday, November 20th.

I'm Soledad O'Brien.

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

Thanks for being with us.

Here's what's happening this morning.

President Bush in Bogor, Indonesia, with the president of Indonesia. President Bush's trip to the world's largest Muslim nation expected to last less than six hours.

The Secret Service preparing for thousands of protesters on the streets chanting and carrying anti-American and anti-Bush signs. Police are keeping a close eye on the crowds after unconfirmed reports that a suicide bomber plans to attack during the president's visit.

CNN's Ed Henry is in Bogor with the president. He joins us now -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Hello, Miles.

I'm outside the presidential palace here. Local police officials are downplaying that threat you mentioned, but nevertheless, you're absolutely right, very heavy security here all around the palace, both military and police officials.

This is the final leg of the president's swing through Asia. He woke up this morning in Vietnam. He was there to bang the gong three times at the stock exchange in Ho Chi Minh City. The president had faced criticism over the weekend that he had not gotten out among the Vietnamese people a lot, so we saw him today also, with some Vietnamese children. They were performing native dances.

But a much more hostile reception here in Indonesia for the president, unlike that friendly reception in Vietnam. As you noted, a Muslim country here. A lot of anger about the U.S. invasions of both Iraq and Afghanistan. And the president also may face some tough questions later this hour, a press conference with his Indonesian counterpart.

One topic that could be at the top of the list, North Korea. At the end of this APEC summit over the weekend, there was an expectation and the White House had wanted a written unified statement from the 21 leaders there denouncing North Korea's nuclear weapons program. Instead, it was just an oral statement from the Vietnamese president.

The White House insisting they're OK with that. But that's not what they had been saying on the way in to the summit.

Another topic, of course, could be the president's own popularity around the world. You mentioned that tight security here at the top, Miles. The bottom line is the president is only going to be in this country for about five or six hours. He's not going to sleep in Indonesia.

We're all going to be getting on planes and basically flying some 13 hours to Hawaii, crossing 17 time zones, just to get him back safe and sound in the United States this evening -- Miles.

M. O'BRIEN: Ed, let's talk about this oral, as opposed to written, statement on North Korea. Which countries were pushing for things not to be put in writing?

HENRY: Well, one concern we know about for sure is when the president had a bilateral meeting with South Korean President Roh over the weekend, the South Korean president had been concerned about this program where he had to interdict and inspect ships that allegedly have nuclear materials coming out of North Korea. South Korea has been resisting that. That's one bone of contention right there. And that was one of many concerns that were there from various Asian countries. And that's why they did not get that unified statement.

The White House still insisting that there's been progress. Obviously North Korea has said they'll come back to those six-party talks. But this was still a bit of a blow -- Miles.

M. O'BRIEN: Ed Henry in Indonesia.

Thank you.

We'll bring you the president's news conference live here on AMERICAN MORNING as soon as it happens. It's scheduled right now for 6:55 Eastern Time.

Stay with us this morning -- Soledad.

S. O'BRIEN: President Bush's visit has sparked massive demonstrations in Indonesia, and it's a real challenge for the U.S., trying to get cooperation from Muslim nations in the war on terror.

Maria Ressa is CNN's former Jakarta bureau chief who's covered the Far East extensively. She's in Manila this morning.

Maria, nice to see you again. Thanks for talking with us.

The protests have been very, very large. Indonesia, though, has a reputation as being a moderate Muslim country.

Are you surprised by the size of the protests?

MARIA RESSA, AUTHOR, "SEEDS OF TERROR": Not at all. In fact, I had expected the protests to be larger in some instances.

I think Indonesia is a key country to look at. It's got the world's largest Muslim population.

We saw in 2003, when the U.S. went into Iraq, the level of anti- American sentiment, like it did in the rest of the Muslim world, really spiked incredibly. It went down to 15 percent from a high of 75 percent approval rating a few years before. And then, after that, that very negative rating for the U.S. policies, the next year, the next time -- this is from the Pew Global Attitudes Survey -- the next time they took it was after the tsunami aid that the U.S. pushed in. Approval ratings for the United States went as high as 38 percent. That was more than double what it was. And this year, right after they took it, it's at 30 percent.

So you're seeing a volatility. But yet, what's key here is that Indonesia, by all accounts, and by these surveys, is a moderate nation, where there's a small radical minority, and it is also a nation where U.S. actions has taken effect, that is pushing more moderates to join the side of the Western coalition, rather than the radicals. That's really the main point in Indonesia, because the U.S. is one of the key tools of the radicals to push more moderates to take -- to go to carry out terrorist attacks -- Soledad.

S. O'BRIEN: You know, you look, Maria, at some of the attacks that you talk about, and you say, it's a small number of extremists. But you've got October 2002, the Bali bombing killed 200 people. 2003, 10 killed in the Marriott Jakarta bombing. September 2004, 11 killed in the Australian embassy bombing. October 2005, at least 23 were killed in that Bali suicide bombing.

Is there a sense that these extremists are gaining a foothold where they didn't necessarily have one before?

RESSA: You know, actually, the sense is that law enforcement is working around the region. Those are -- this is now the bombing season, what authorities in Indonesia are calling the bombing season.

These attacks, four of them after 2002, have happened once a year. And so far this year there chant hasn't been any large attack.

They've been largely carried out by a group called Jemaah Islamiyah, which is acknowledged as al Qaeda's arm in Southeast Asia. What we're seeing is that, like al Qaeda, Jemaah Islamiyah's central leadership, its structure, has largely been degraded. And what you're seeing is that many different cells are still working in the region.

Analysts differ on whether that's good or bad. Some people will say that means that there's less of a threat. There isn't a big attack this year, after all. But then others will say that since it is more degraded, what you're seeing is less central control. It's harder for authorities to pin it down.

We're seeing smaller, more frequent attacks throughout Southeast Asia. That's the problem now for authorities.

Here's one interesting point about Indonesia. In many ways, it is more successful than Western countries. It's arrested more than 300 people affiliated with Jemaah Islamiyah, affiliated with the radical ideology all attempting to carry out terrorist attacks. And it has successfully sentenced and convicted 127 of them since 9/11.

S. O'BRIEN: Maria Ressa is joining us from Manila this morning.

Thanks, Maria -- Miles.

M. O'BRIEN: A dark piece of American history is at the center of a surprising legal fight. It involves the U.S. Embassy in Iran, site of the hostage takeover 27 years ago.

CNN's Aneesh Raman joining us from Tehran with more -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Miles, good morning.

The embassy is still here. It's still owned by the U.S. But it could prove the latest hit to the relationship between the two countries.

(BEGIN VIDEOTAPE)

RAMAN (voice over): November, 1979, the beginning of the end for U.S.-Iran relations. Amid the Islamic revolution, hordes of students took control of the U.S. Embassy in Tehran. Fifty-two Americans were taken hostage, and within months, the U.S. broke off all diplomatic ties with Iran.

(on camera): Nearly three decades later, the embassy is now home to a government-backed militia. They rarely let any cameras on the inside, but there's plenty to see on the outside.

This is the main gate. And you can still make out America's seal, battered by age and by protest. It's barely visible, but there it is: Embassy of the United States of America.

(voice over): Walls which once protected American diplomats are now canvasses for anti-American banners. An odd exterior given the U.S. technically still owns the embassy. But now even that last link could vanish.

This is the Iranian man who may soon hold the deed to the American Embassy. In 1992, Hossein Alikhani spent 105 days in a U.S. jail after being captured in the Bahamas for allegedly violating sanctions on Libya. But the sanctions didn't apply to non-Americans living outside the U.S., so he sued and was awarded more than $500 million by an Iranian court, which just a few days ago gave this option to the U.S...

HOSSEIN ALIKHANI, IRANIAN PLAINTIFF: If they don't pay, OK, then either they have to come up with a list of assets or they have to prove that they have nothing.

RAMAN: The U.S. has something, its old embassy, which could, in a matter of weeks, being handed over to Alikhani in lieu of payment. A prospect the State Department is warning against.

GONZALO GALLEGOS, STATE DEPT. ACTING SPOKESMAN: Under the Vienna Convention on Diplomatic Relations, even where there are no diplomatic relations, states have an obligation to respect and protect embassy premises from actions such as these.

(END VIDEOTAPE) RAMAN: Now, we're not sure where this will go, Miles, but Alikhani says while he's not 100 percent confident he'll get the embassy, he's confident he's going to get all of that money from U.S. assets -- Miles.

M. O'BRIEN: Aneesh Raman in Iran.

Let's get right to Bogor, Indonesia, where the presidents are about to speak to the media there. That's the president of Indonesia, Susilo Bambang Yudhoyono, along with President Bush.

Let's listen to the news conference.

SUSILO BAMBANG YUDHOYONO, INDONESIAN PRESIDENT (through translator): Ladies and Gentlemen, today we have received a visit of President Bush, who has come here to increase our cooperation and friendship between Indonesia and the United States. And we just discussed a number of agenda in order to improve our -- increase our relations.

In our meeting I expressed my thanks for the cooperation and assistance given by the United States to Indonesia...

M. O'BRIEN: We're going to let the two leaders continue with their introductory remarks. As soon as it gets to the Q&A session of this news conference we're going to bring it to you. So we'll press on -- Soledad.

S. O'BRIEN: All right.

Straight ahead this morning, echoes of the Cold War flaring up. It involve a Russian spy, an English sushi place, and a secret poison. We'll tell you that story straight ahead.

Plus get back. There's something new from the Beatles this morning. We're live on Abbey Road as AMERICAN MORNING continues.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody.

You're looking at live pictures of the Indonesian president, Susilo Bambang Yudhoyono, and he is at a joint news conference, where some of the press has assembled, as well. A joint news conference with President Bush. They're at the presidential palace in Bogor, Indonesia.

We're expecting a Q&A portion of this news conference. We're going to monitor it for you and bring that to you, and bring updates to you throughout the morning, obviously as we cover the president visiting Indonesia, where there have been massive, massive protests while he's been there -- Miles.

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

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: I'm Arwa Damon in Baghdad.

Human Rights Watch released a report calling the Saddam Hussein trial "fundamentally unfair." The report also states that the trial was marred by so many procedural and substantive flaws that the verdict is unsound. It also states that the prosecution undermined a number of international laws, to include the right to a fair and impartial court, the cross-examination of witnesses, and the presumption of innocence.

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PAULA NEWTON, CNN CORRESPONDENT: I'm Paula Newton in London, where Scotland Yard continues to investigate the alleged poisoning of a former Russian spy. Taking a page from the Cold War, Alexander Litvinenko became ill after eating at a London sushi bar while meeting a man who claimed to have information regarding the murder of Russian journalist Anna Politkovskaya.

Doctors here say the man is now fighting for his life. He is one of the Kremlin's harshest critics, but also a very controversial figure himself.

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JIM BOULDEN, CNN CORRESPONDENT: I'm Jim Boulden in London, where a new Beatles album has just been released. But you've never heard the Fab Four like this before.

Legendary Beatles producer George Martin let his son literally mash together original recordings with studio outtakes and other snippets to give a very 21st century sound to the 1960s music. Now, the album is the soundtrack to a Cirque du Soliel show in Las Vegas and it's called "Love".

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

Let's get back to that news conference in Bogor, Indonesia. The president making his opening remarks.

(JOINED IN PROGRESS)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... between our two nations that will last beyond -- beyond the immediate. A relationship that should last for decades to come. It's important to our nation that we have good, strong relations with Indonesia.

We've just come from the APEC summit in Vietnam. And the people of Indonesia should know that when their elected leader speaks, other leaders listen, as do I.

Mr. President, you're well respected in the international community, and I appreciate your perspective on global and international issues. And thank you for sharing them with me again today.

This afternoon, we also discussed bilateral initiatives that will expand opportunity for the people of Indonesia and, at the same time, deepen our partnership.

We support your country's reform efforts, Mr. President. I thank you for your leadership on that important issue.

The Indonesian president understands that economic reform and fighting corruption and investing in people will help this important nation succeed. We are committed to helping you on all these initiatives.

Last week we signed a $55 million millennium challenge account threshold agreement. This agreement means that the American people will support Indonesia's efforts to reform its democratic institutions and strengthen governance.

We would not have made this commitment, Mr. President, if you were yourself not committed to reform. The agreement's going to help fund your strategy to immunize your children against deadly diseases.

We support your attempt to modernize your education system. We have pledged and provided over $150 million to the Indonesian government to help provide the tools that will give the next generation of Indonesians the chance to realize their enormous potential.

One thousand schools spread across eight provinces in Indonesia are now benefiting from our education partnership. And as I told you in our meeting, we will continue to help.

Our two nations continue to build strong trade and investment relationships. We're determined to grow our economies in a way that are -- that are sustainable.

Last week, we signed an agreement to help Indonesia conserve its forests. Together, our nations will fight illegal logging while promoting trade and forest products that does not threaten the region's environmental quality.

Our two nations recognize we must explore alternatives to fossil fuels. The president and I have spent quite a bit of time talking about this important issue.

The people of Indonesia have got to know that for security purposes and for economic security purposes, America must spend research money to enable us to have alternative sources of energy from oil. I've told the president that I am committed to sharing technologies as they become developed to help us all become less dependent on oil. And I appreciate your commitment, Sir, to biofuels as an alternative source of energy.

We talked about avian influenza. In this world of ours today, if there's an influenza outbreak -- and, you know, in Vietnam, it could affect Indonesia or the people of America. And therefore, we need to work in a collaborative way to -- to deal with this grave threat.

We'll continue to fund our partnership on this issue, Mr. President, as well as our partnership to protect public health in Indonesia.

We support Indonesia's growing global role. Indonesia will soon take a seat on the United Nations Security Council. We discussed threats to global security and how to gather our -- our two nations can help provide a peaceful way forward.

We discussed North Korea, and we discussed Iran. Both regimes have nuclear ambitions. Nuclear weapons in the hands of these regimes would make the people of the Middle East and northeast Asia less secure.

The president and I discussed how the International Atomic Energy Agency and the six-party talks provide the best opportunity to seek peaceful diplomatic solutions to our concerns about these weapons programs.

The United Nations requires reform to become a more effective institution, and I know that Indonesia will be a strong voice for positive change in the United Nations. And we look forward to having you on the Security Council.

The American people and the Indonesian people have both suffered from the acts of violent extremists. Our nations are determined to take effective action against terror networks that plot new attacks against innocent people.

Indonesia is an example of how democracy and modernization can provide an alternative to extremism.

And we appreciate your leadership, Mr. President. Your democracy is making Indonesia strong and better able to play a positive role in Southeast Asia and the world.

Our talks today have been very constructive. I appreciate your hospitality.

And I presume we'll take some questions.

YUDHOYONO: Thank you very much, Mr. President.

UNIDENTIFIED MALE: OK. First question -- Rishana (ph).

QUESTION: Thank you.

My name is Rishana (ph), and I'm from TV 7 (ph) Indonesia. I would like to ask you -- as you mentioned before, that this nation now is going towards a democratic nation. And how do you think the process of a democratic nation (INAUDIBLE)?

And I have a second question.

BUSH: How many do you get to ask here in Indonesia?

QUESTION: Excuse me?

BUSH: How many questions do you get to ask? That's all right. Keep firing away. Just setting a bad example for the American press corps.

(LAUGHTER)

QUESTION: Well, lots of Indonesians think that you have a hidden agenda going here.

BUSH: Oh yes?

QUESTION: Such as securing your Exxon deal in (INAUDIBLE). And what is your comment on that?

BUSH: Yes. Well, we didn't discuss it. No, we did not discuss it.

I -- you asked about Indonesian democracy. Here's living proof right here.

He ran a campaign. He said, vote for me, I will do the following things. He's following through on his promises.

The elections were open. The elections were clean. The elections were fair. And you elected a good president who is working hard to -- in a tough job. And I don't think the American people understand how big Indonesia is -- 17,000 islands, 6,000 of them inhabited, with a variety of, you know, demographics.

The president kindly hosted a meeting today with civil society leaders which points up to the diversity of this great nation: different religions, different backgrounds, different people, all united under a democratic -- under democracy. And so I would say your progress is very good. But we all have work to do in our respective democracies.

You know, our transition to democracy wasn't all that smooth in America. If you study American history, we had some rough go for a while. And it's hard work to make sure the institutions are sound so that people can live in a free society that's based upon the rule of law. But the president's committed to it and he's working hard to it, and I would say you're making good progress.

UNIDENTIFIED MALE: Terry Young (ph).

BUSH: Terry Young (ph), go ahead and yell it. QUESTION: Mr. President, you've talked about the...

BUSH: Oops. Don't yell it.

QUESTION: Mr. President, you have talked about the dangers of leaving Iraq too soon, but you haven't talked about what risks might be involved in adding tens of thousands of troops to secure Baghdad, as Senator McCain has suggested.

What are the downsides, if any, to that approach?

And I'd like to ask the president of Indonesia, what suggestions did you make to President Bush about his Iraq policy?

BUSH: Terry, we haven't made up -- I haven't made any decisions about troop increases or troop decreases. And won't until I hear from a variety of sources, including our own United States military.

As you know, General Pace, who is the chairman of the Joint Chiefs of Staff, is in the process of evaluating a lot of suggestions from the field, and from people involved with the Central Command, as well as at the Pentagon. And they will be -- they will be bringing forth these suggestions and recommendations to me here as quickly as possible.

But -- so I haven't -- there's no need to comment on something that may not happen. But if it were to happen I will tell you the upsides and downside.

YUDHOYONO: My view on how could we work together ending conflict in Iraq, or in finding proper and realistic solution for Iraq, is that global community must be also responsible in solving the problems in Iraq, talking about long-term nation-building in Iraq. I think it's not only the responsibility of the missions of the United States and other countries who are now involved in Iraq, but, of course, it's the roles and responsibilities of other nations as well, other communities, as well.

Indonesia believes very strongly if we could work together, if we share and exchange ideas, then there must be a proper and realistic solution in the long term in finding again a proper solution (INAUDIBLE) good for Iraq, good nor neighboring countries, good for the U.S., good for Indonesia, and good for whole communities in the world.

UNIDENTIFIED MALE: Remi (ph) from (INAUDIBLE)

QUESTION: My name is Remi (ph) (INAUDIBLE).

President Bush, (INAUDIBLE) trade relations between the United States and Indonesia is strong. In energy sector, the United States is a long-standing partner of Indonesia. As you probably know, Indonesia is currently developing alternative (INAUDIBLE).

Are you willing to cooperate in this area, and can the United States share its (INAUDIBLE) biofuels? BUSH: Yes, thanks.

I'm very supportive of biofuel initiatives, starting in our own country. It's important for us to develop alternative ways to power our vehicles if we want to become less dependant on oil. And so, for example, we're now consuming about five billion gallons of ethanol, which is a fuel made in our case from corn.

The president and I spent a fair amount of time talking about the ability to develop biofuels, particularly in Indonesia's case from sugarcane, as well as palm oil. And the technologies are available to convert sugar into ethanol. For example, the country of Brazil powers its automobiles with about 85 percent of all -- of all fuels from ethanol, from sugarcane.

The other interesting fact for people to understand is that the technology to have a gasoline-driven automobile to be powered by ethanol is very simple.