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William Jefferson Reelected In Landslide Runoff; Fires Break Out In Santiago; Preparing for Survival

Aired December 10, 2006 - 19:00   ET

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

RICK SANCHEZ, CNN ANCHOR: Take a look at some of these pictures. You are now in THE NEWSROOM. It's the death of dictator Augusto Pinochet and violent riots have broken out in the streets of Chile.
He survived the front lines of Iraq, but when this U.S. soldier came home he faced a much different battle. His story.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: They're taught to go into combat. And when the tears come, they're not taught how to survive that.

(END VIDEO CLIP)

SANCHEZ: Also, diamonds: a warlord's best friend. Ahead, the often bloody tale behind that ring on your finger.

It is 7:00 p.m. Eastern here in Atlanta. You're in THE NEWSROOM. I'm Rick Sanchez in for Carol Lin.

Let's try and catch you now on some of the headlines, everything that's been going on including this: a situation that has been taking place throughout the course of the day, as we've been explaining to you.

This is in Santiago, chile -- and this is where we also bring you this. According to British newspaper, "the Observer," a new government report found U.S. intelligence was eavesdropping on Princess Diana's phone calls hours before her fatal accident in 1997. CNN has not independently confirmed this report, but we continue to try to verify the story. We'll have more on this straight ahead.

But just days left in office, Defense Secretary Donald Rumsfeld made one more visit to troops on the front lines. Rumsfeld unannounced trip included a stop in Iraq's Anbar Province. A spokesperson says that Rumsfeld wanted to show his appreciation for U.S. troops.

In the streets of Beirut today thousands of Hezbollah supporters all calling for the fall of the current government. Meanwhile, the prime minister and other officials remain barricaded inside the city's downtown government complex protected by troops and police.

And the Shuttle Discovery began its latest mission with a spectacular nighttime launch. And a day later, the crew has gotten a lot of work done, we understand. They spent much of today checking for damage caused by the takeoff. The ship is expected to dock with the International Space Station tomorrow.

Now let's take you to the situation that has been developing throughout the day. This has been the situation in Santiago, Chile, where there have been protests for the better part of several hours now. And our sources seem to be telling us that the protests have intensified.

The reason for the escalation of the protest is when these people, who are essentially celebrating the death of Augusto Pinochet, who led their country from 1973 on, who died this morning at the age of 91, when these folks were told that, in fact, the flag would be put at half staff, they took to the streets even more vehemently. They have been making fires. Police officers we've been watching have been coming by with water cannons and shooting them at them.

We've been monitoring these pictures now for quite some time. And as we get more information we'll be sharing it with you and continue to monitor this throughout this newscast.

Meanwhile, the new report on Iraq and talk of pulling out U.S. troops is not going over well with the Iraqi leadership. They call it dangerous, they call it unfair, disrespectful and those are some of the comments. CNN senior international correspondent Nic Robertson is in Baghdad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): Well, the statements by Jalal Talabani occurred coming as somewhat of a surprise, he has been in the past, a staunch ally of the United States. This seems to be an about-turn on that support.

Saying that the Iraq study group's report undermines the sovereignty of the Iraqi army. He says that is because as leaving, the report proposes, so many U.S. military trainers embedded in the Iraqi army undermines its sovereignty, undermines the sovereignty of Iraq.

He described the report as unfair, unjust and even dangerous.

JALAL TALABANI, IRAQ PRESIDENT: I think that Baker-Hamilton is not fair, is not just and it contains some very dangerous articles which are undermining the sovereignty of Iraq and the constitution.

ROBERTSON: President Talabani's rejection comes hard on the heels of the rejection of the Iraq study group by another leading Kurd. He has said that what the Iraq study group sets out to do, or proposes, is to take control away from the regional governments and place it under -- place the country more under central control from Baghdad. And he says that would undermine the Kurds' ability to control their oil revenues from Kurdish oil fields. He says that's something that is allowed for in the constitution.

The Kurds have always wanted more independent, some more autonomy inside Iraq. And it appears that the Kurds now feel that this study group's report would undermine their independence, undermine their access, independent access to those oil revenues.

This comes at a time when defense secretary -- outgoing Defense Secretary Donald Rumsfeld visited Iraq. He went to a number of bases, the al-Asad Air Base, a big air base in the west of Iraq. He also went to the very large, and sprawling Balad Air Base, about 50 miles, 80 kilometers north of Baghdad.

There he met with troops. He met -- he dined with troops, met with some of the commanding officers. He also came to Baghdad. Did the same again: met with troops, met with some of the commanding officers. It was a very private visit. It was shrouded in secrecy.

The U.S. military spokesmen here weren't able to tell us in advance, weren't able to give us much information while the secretary of defense was here.

This has generally been the case because of the high degree of security around leading U.S. figures when they visit Iraq. But there seems to have been a personal visit for the outgoing defense secretary to thank personally, the troops from the commanding officers for all their work here.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

SANCHEZ: Let's do this now. More on this developing story.

Let's take you back now to the Plaza Desenalinia (ph), which essentially means the plaza of citizenship. This is in Santiago, Chile. We had mentioned before that we had gotten word that some of these riots that have been taken place there as a result of the death of 91-year-old Augusto Pinochet, the man who led the country back in 1973 and on -- as a result of his death, some have been celebrating and taking to the streets to do so.

We mentioned it might escalate. It apparently has. We are now seeing some more fires. We had seen some smaller fires earlier. But these are live pictures now, and you can see that it's a much larger fire now, that police have been -- will have to come in and try to deal with. Throughout the time, they've been coming in from time to time with water cannons and trying to push the demonstrators back.

Once again, we'll continue to monitor this. This is CNN International. We'll be follwing the story. And as we get more details we'll sharing them with you.

Meanwhile, the leader of Iraq's largest Shiite political party denies he's a puppet of Iran. Abdul Aziz al-Hakim insists all decisions on Iraq are made by Iraqis not by any outside nation or group, including Iran. And he had this to say about U.S. troops in Iraq.

(BEGIN VIDEO CLIP)

ABDUL AZIZ AL-HAKIM, IRAQI SHIITE LEADER (through translator): Of course, we would like to see the American forces withdraw, allied forces withdraw as soon as possible, but this depends on the opinion of the military and security experts and the political experts in this to decide what is the right step for that and what is the timetable for that.

(END VIDEO CLIP)

SANCHEZ: Talking to Iran about Iraq, President Bush may pass on that idea, but it's getting some traction after a key group endorsed the idea. We're going to get more now on the story, she's been following it diligently. Here is CNN White House correspondent Elaine Quijano.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): The Iraq study group believes talking to Iran without precondition is worth a shot to try to improve the situation in Iraq.

LEE HAMILTON, CO-CHAIRMAN IRAQ STUDY GROUP: We're not arguing that we give up anything or concessions, but they're big players, let's bring them into the action. How do you solve problems with people unless you talk to them?

QUIJANO: That recommendation has unleashed a wave of blistering criticism from those who argue it would weaken what has been the U.S.'s non-negotiable position: that Iran should not have nuclear weapons.

ELIOT COHEN, JOHNS HOPKINS UNIVERSITY: One of the things profoundly unrealistic about the report is the idea you are going to have a negotiation with Iran where somehow the nuclear issue is off the table and we're not going to deal with that. Well -- I'm sure that's not the way the Iranians are going to approach it.

QUIJANO: Just this weekend, Iran's president has said his country had begun installing 3,000 centrifuges in an expansion of its uranium enrichment program. All along, Iran has insisted it's develops nuclear technology for peaceful energy purposes. But with a country awash in oil, the Bush administration and some lawmakers remain skeptical.

SEN. TRENT LOTT, (R) MISSISSIPPI: I think Iran is a serious problem. They continue to thumb their nose at the world. And go forward in developing nuclear weapons capability.

QUIJANO: Yet the co-chair of the Iraq study group insists the panel isn't recommending the U.S. give Iran a pass.

JAMES BAKER, CO-CHAIRMAN, IRAQ STUDY GROUP: We take the nuclear issue and set it off to the side and we say this cannot be a part of that dialogue.

QUIJANO: Still, even incoming head of the Senate foreign relations committee concedes Iran isn't the answer. SEN. JOE BIDEN, (D) DELAWARE: Iran cannot solve our problem for us in Iraq. If we worked it out they could stop doing bad things but they're not likely to be able to do good things that will fundamentally alter the circumstance in Iraq.

QUIJANO (on camera): President Bush has shown no signs of backing away from his insistence that Iran must verifiably suspend its uranium enrichment program before coming to the negotiating table. As for his Iraq policy, this week the president will take part in briefings from officials at the State Department, the Pentagon, and via video conference from military commanders in Iraq.

Elaine Quijano, CNN, the White House.

(END VIDEOTAPE)

SANCHEZ: And there is a lot of news on this night. Illinois senator Barack Obama is in New Hampshire. So far, he's not answering the question on everybody's mind: will he or won't he? We're going to have a live report from New Hampshire.

Their son went away to the war in Iraq. He survived the bombs, he survived the bullets but came home a very different man. One family's post-Iraq tragedy.

And diamonds, glitter brightly in store windows but the path they took to get there isn't always so glamorous. You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

SANCHEZ: Let's take you back to Santiago, Chile now. I've been during the break monitoring Chilean television to try and understand what's going on by listening to that broadcast.

And here's what I've learned. I understand there's two scenes going on right now: one involves a fire, it's just across from the university there in Santiago and police are staying back apparently from that situation. At some point, I imagine, they're probably going to be confronted by some of the protesters who started that fire, or confront them as it were.

In another side of town, we understand that there's also a group of about 300 or 400 students, according to the broadcast that I was monitoring, who have gathered on the street. And police are coming in with water cannons to try and push them back, as best they can.

But this is a situation that has escalated over the last couple of hours. We're going to be monitoring it here. All of it obviously having to do with the death of Augusto Pinochet who led Chile for many years, many tumultuous careers we should say, from 1973 on, died this morning at the age of 91. Many in Chile thought he did a good job by keeping the leftist forces out of the country in the form of course Salvador Iende.

There are others in the country who were convinced that he was a brutal dictator, nothing more.

So, this is what we're seeing at this point, a story that we will continue to follow for you right here on CNN.

Meanwhile, authorities are still trying to confirm the cause of yesterday's explosions in Allentown, Pennsylvania. Three houses destroyed but no one was seriously injured. One resident says a utilities employee was working on her gas meter just before the blast.

We have got new video of the train derailment in New York state just east of Buffalo. A train jumped the tracks on the overpass, one car left dangling over the side, another on the street below. No injuries have been reported by the way.

And the remains of double murderer Russell Wagner are said to be removed from Arlington National Cemetery. In it's closing hours, the outgoing Congress passed the measure to disinter the ashes of the Vietnam vet allowed into Arlington under a loophole.

Barack Obama toured parts of New Hampshire today and received his usual rock star reception. New Hampshire is the first primary state as you may know, so the visit raises the obvious question: is he or isn't he running for president?

CNN's John King has the story. He's joining us now live from Manchester.

Well, did he engage his audience with perhaps a reparte about -- I'd like for to you vote for me? Or did you hear anything like that?

JOHN KING, CNN CORRESPONDENT: We're not quite there yet, Rick.

Barack Obama is 45-years-old. He's only been in the United States Senate for two years. It'll be two years in January, and yet he is the hottest commodity in American politics right now. And as you noted, he's thinking about running for president.

He's already been to the first caucus state of Iowa three times. So today, it was time to introduce himself to the voters here in the first primary state of New Hampshire.

We saw Barack Obama in some of the retail politics setting that makes New Hampshire famous. He stopped by a coffee shop in Portsmouth, that's over on the seashore in eastern New Hampshire, on the Atlantic Ocean -- shaking hands, answering questions about his plans, his view.

The troops should start coming home from Iraq soon, alternative energy issues, mingling quite casually and quite comfortably with voters in the coffee shop.

The main event of the day was here in Manchester, 1500 Democrats on a Sunday afternoon packing a conference center. It was a fund- raising speech for the New Hampshire Democratic party which just had a big Democratic year in -- a big Democratic year this election campaign. Barack Obama speaking for about 35 minutes. He's not ready to say yet if he's running for president. That decision will come early next year. But he sure sounds like a candidate.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA, (D) ILLINOIS: I am telling you, New Hampshire, America is ready to turn the page. America is ready for a new set of challenges. This is our time. A new generation that is preparing to lead. You are part of that. And I am grateful to be a partner with you on that. New Hampshire, thank you very much. Let's go make it happen.

(END VIDEO CLIP)

KING: More evidence of the buzz across New Hampshire and acrops the country for that matter. A book signing this morning, it was supposed to be at a book store, 900 people wanted tickets to that event so it was moved to a conference center instead.

Barack Obama patiently shaking hands and signing books, people patiently sitting and waiting to talk to him.

The buzz here, Rick, is most of these Democrats say they very much want him to run. Senator Obama again says he will make that decision early in the year, after consulting more with his family.

But we do know he's quietly assembling a campaign staff just in case. He says he thinks the country is ready to at least entertain the notion of an African-American president, although he did say in a news conference today, he thinks the treshold is a bit higher for any minority, an African-American, an Asian-American, a Latino-American, even a woman, he said, would have a higher threshold than a white male.

But Rick, he sounds like a candidate, he looks like a candidate. There's a huge buzz for him here in New Hampshire and Iowa, and across the country. We'll get an announcement which way he'll go, whether he'll be in the field in 2008, early in the new year, Rick.

SANCHEZ: Well, whether he's in or out, is he already having an effect on the 2008 race?

KING: Without a doubt. Hillary Rodman Clinton, the junior senator of New York, the former first lady wanted to take a little bit of time off after the election and worry about her probable presidential campaign, later this year or early next year. But she's accelerated her planning because of the buzz and attention to Barack Obama, calling activists around the country saying hold on, I'm probably getting in, give me a little bit more time.

The other candidates are having a very hard time getting attention. Other members of the United States Senate, Chris Dodd of Connecticut, Joe Biden of Delaware, Evan Bayh of Indiana on paper, all more experienced politicians, all you would think more credible out of the box as presidential candidates. But there is a huge Obama buzz right now. Evan Bayh even in the state of New Hampshire this weekend, smaller crowd, smaller media horde following him. But Evan Bayh, good natured about this, he likens it to David versus Goliath. Says he likes his chances in the long run, but concedes right now Obama is the celebrity politician -- Rick.

SANCHEZ: Interesting development. Thanks so much.

John King, we'll be looking forward to talking to you tonight at 10:00.

Remember the congressman allegedly caught by the FBI with a freezer filled with dirty cash. He's Democrat William Jefferson who represents part of New Orleans. Well, despite a federal bribery probe, voters reelected him yesterday in a lopsided runoff. That, as CNN's Gary Nuremburg reports, that's a problem for a party that's promised to clean up Washington.

(BEGIN VIDEOTAPE)

REP. WILLIAM JEFERSON, (D) LOUISIANA: And we love you. We truly do.

NUREMBURG: Forced into a run-off. William Jefferson won his congressional election easily Saturday despite being the subject of a federal bribery investigation that has been public for more than a year-and-a-half.

Federal agents raided Jefferson's home and said they found $90,000 in cash in his freezer. Jefferson's congressional office was raided as well. His opponent made corruption a key part of her campaign.

KAREN CARTER, JEFFERSON'S OPPONENT The biggest difference is ethics, and honesty and integrity and restoring public trust back in public office.

JEFFERSON: Thank you. Take care.

NUREMBURG: Jefferson overcame the challenge, capitalizing on his long history with his district's voters.

JEFFERSON: It's been a long time I have been in public life, 26 years. There are lots of folks during that time I touched and who have worked with. And who I believe love me and I love them completely and totally.

NUREMBURG (on camera): That is an embrace he is not likely to get from Democratic leaders who made Republican corruption an important part of their campaign to capture control of congress.

MARK PRESTON, CNN POLITICAL EDITOR: I think the Democrats probably would have preferred probably to have Mr. Jefferson lose reelection. They wouldn't have to deal with this ongoing probe. But quite frankly I think what you're going to see is that Democratic leaders are probably going to avoid Mr. Jefferson.

NUREMBURG (voice-over): Ater an investigation of more than a year and a half with no charges against Jefferson, some legislators want a resolution.

SEN. JOE BIDEN, (D) DELAWARE: Get on with it. Federal government, attorney general, make a decision -- charge him or don't charge him. Move on.

NUREMBURG: Jefferson made his Washington experience a plus in the campaign, pledging to use it to secure the help New Orleans needs to rebuild after Katrina. Reelected but under a cloud, the question is whether can he deliver.

Gary Nuremnburg, CNN, Washington.

(END VIDEOTAPE)

SANCHEZ: Well, he made it safe home from Iraq, but his memories continue to terrorize him thousands of miles away from the war zone. A family mourns a son, taken not by an enemy but by his own hand.

And then later, it's one of the world's most valuable gems but it often comes at a terrible price. What you need to know about the diamond debate.

And of course we're following the situation in Santiago, Chile. The very latest from there. People have been taking to the streets. There are fires. There seem to be riots, if not disturbances. Police are trying to deal with it and we will continue to cover it for you. We are in the CNN NEWSROOM.

(COMMERCIAL BREAK)

SANCHEZ: I'm Rick Sanchez in THE CNN NEWSROOM. Let's try and bring you up-to-date now on what's going on in Chile at this point. This is Santiago.

We have just learned from monitoring some of the broadcasts there in Chile that many of these protesters that you see have taken to the streets, they're trying to block the remains of the former Chilean leader, most would call or many would call a dictator, from being taken from one part of the city to the other.

They blocked many of the corridors. And we understand traffic is completely blocked on most of the streets in Chile on this night. Officials have, obviously, their hands full with many of these demonstrators who have come out celebrating the death of Augusto Pinochet while some in the country as well mourn his death.

And one of the reasons that they're celebrating, or one of the reasons that they're protesting is, they don't want the flags put at half staff.

We'll continue to monitor that for you. Meanwhile, many troops coming back from Iraq are dealing with all types of injuries. But for some, the wounds are not easy to see, especially those dealing with post traumatic stress disorder and the effects can be devastating.

Here's our medical correspondent Elizabeth Cohen.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: How are you doing, man? This is your brother, coming to see you from Ft. (INAUDIBLE), Kentucky.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice-over): Twenty- one--year-old Jason Cooper, fresh off boot camp, ready to leave for Iraq with the Iowa army reserve, and full of life.

TERRI JONES, JASON COOPER'S MOTHER: He had a fast car. He loved to do tricks off the diving board.

ED COOPER, JASON COOPER'S FATHER: He made you laught. He was my best friend.

COHEN: But when Jason came home in March, 2005, he wasn't the Jason his family rembered.

T. JONES: You could tell he was lost in his thoughts. And you could be talking to him and you'd have to kind of, Jase, hey.

COHEN: And at night, the nightmares set in. Jason couldn't sleep.

E. COOPER: And he'd just knock on my door and wake me up. And I'd tell him to come in, sit there and talk.

COHEN: It seemed as if the terror of Iraq stil consumed him. The family hoped Jason would get help. He said, next week. But three months after Jason returned home from Iraq, Ed got a call from the police on his way home from work.

E. COOPER: They told me I needed to get to my residence immediately and they wouldn't tell me why.

COHEN: Ed wasn't allowed inside his home, shielded from his son, who had hanged himself in the basement.

E. COOPER: It was hard to believe what they had told me. I just wanted to see if I could help him.

T. JONES: I had failed. A lot of people failed him at that point.

E. COOPER: And this is Jason's room. It's been just the way it was since he was here last.

COHEN: Ed won't change jason's bedroom. And he's just able now to go back down in the basement. A year-and-a-half after his suicide, Jason's parents believe their son suffered from post traumatic stress disorder or PTSD, brought on by his time in Iraq. Still, Jason's father doesn't blame the military for his death.

E. COOPER: I think they're all doing a wonderful job over there. We did not ask for this. It's just unfortunate wars have to come out, and unfortunately, people lose lives.

COHEN: But Terri has made a public statement of her own, flying the flag upside down.

T. JONES: Soldiers are in distress. They're taught to be tough. They're taught to go into combat. And when the tears come, they're not taught how to survive that.

COHEN: Ed wants his son to know he finally put the pool in the back yard, the one Jason always wanted.

E. COOPER: I wanted to see him go off the diving board. Sometimes at night, I'm just waiting to hear a splash, hoping it will be him.

(END VIDEOTAPE)

SANCHEZ: Meanwhile, tonight CNN Presents Combat Hospital. Go beyond the sanitized headlines to the frantic fight to save wounded troops tonight right here on CNN at 8:00 p.m. Eastern.

Here's a quick look at what's happening right now in the news. According to the British newspaper "The Observer," a new government report found that U.S. intelligence was eavesdropping on Princess Diana's phone calls before death. CNN has not independently confirmed this, but we continue trying to clarify the story.

Count Iraqi President Jalaal Talabani as another harsh critic of the Iraq Study Group report. Talabani flatly rejected the bipartisan panel's findings, calling them "very dangerous to Iraq's sovereignty and constitution.

Also, saying goodbye and thanks: Secretary Donald Rumsfeld makes his unannounced visit to Iraq to meet with American troops stationed there. Rumsfeld will formally step down from his post next Monday.

The Shuttle Discovery crew is wrapping up its first day in orbit. Last night's launch went off without a hitch. Tomorrow the astronauts dock at the International Space Station where they're going to be doing some electrical work. Rewiring it's called.

What do you know about diamonds? Well, not just the brilliance but the bloodshed? That's right, bloodshed behind them. We're going to explain that to you.

Also, how long could you survive stranded in your home, your car or in the wilderness? We're going to have a look at the survival kit that could keep alive. That's all ahead on THE NEWSROOM. (COMMERCIAL BREAK)

ANNOUNCER: You're watching CNN NEWSROOM on CNN, the most trusted name in news.

SANCHEZ: Welcome back to the CNN NEWSROOM, I'm Rick Sanchez. The new movie "Blood Diamond" is focusing attention the dark facet of the gem trade. Some jewelers want to know if you're listening and taking action to certify that your diamonds are conflict-free? That's the word they used. Here's CNN's Ali Velshi.

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN CORRESPONDENT (voice-over): When someone asks you where you got your diamond they probably want to know where you bought it.

UNIDENTIFIED MALE: The country of origin when it comes to polish doesn't really make a difference. It's really not important where that diamond comes from.

VELSHI: Unless of course you're worried about buying what's called a conflict diamond, rough diamonds traded for arms in African civil wars. Conflict diamonds aren't the problem they once were because of worldwide pressure on the diamond industry and the industry's own efforts but Canada, now the world's third largest diamond producer, thinks increased attention to this issue will cause at least some customers to intentionally buy conflict free.

BOB GANNICOTT, CEO, ABER DIAMOND CORP.: We want to be in the forefront of that, not trailing behind it. So even though the customer may not be particularly interested yet, we are very interested. And we take great care in that respect.

VELSHI: Bob Gannicott runs Aber Diamond Corporation, one of Canada's major diamond miners. His company recently moved into the retail diamond business.

GANNICOTT: We want to be the world's best, most authoritative diamond jeweler.

VELSHI: How does make the move from diamond miner to guy diamond jeweler? By buying one of the most storied names in jewelry, Harry Winston, the venerable New York institution, immortalized by movies like "Gentlemen Prefer Blondes."

Harry Winston sill buys quality diamonds wherever it can but says conflict free is now part of its mantra.

(on camera): Does the person who comes in to drop top dollar on diamond jewelry at Harry Winston give a hoot?

GANNICOTT: Some do. And certainly we give a hoot. The point is we make it our business to protect ourselves from what we undoubtedly become a bigger issue in the future than it is today. VELSHI: Whether conflict free diamonds becomes an issue is yet to be seen. During the height of the diamond fueled conflicts in Africa the last 30 years jewelry buyers rarely asked where a diamond came from. Not that most jewelers were like likely to know the answer anyway. Ali Velshi, CNN, New York.

(END VIDEOTAPE)

SANCHEZ: Well, despite precautions, the trade and conflict diamonds still exists. There's a new book out. It is called "Blood Diamond, Tracing the Deadly Path of the World's Most Precious Stones", it's really an inside look at this problem. Author Greg Campbell is good enough to join us tonight. He met with diamond smugglers in Sierra Leone himself while researching the book and he is joining us now from Denver, Colorado, where I was just a couple of days ago we should say.

Mr. Campbell, thanks so much for being with us. Start us off with this. When an American goes out and buys a diamond, what does he need to know that perhaps he's never considered?

GREG CAMPBELL, AUTHOR: Well, that's a really important question, as a matter of fact. The term "conflict diamonds", what it denotes is a diamond that has been stolen by a rebel group in Africa and sold into the mainstream channels.

And these are usually rebel groups that has tortured and terrorized civilian populations. In the case of Sierra Leone, for instance, where I did the research for my book, the rebel group called the Revolutionary United Front became particularly infamous for amputating the arms from their civilian victims. It was a means of military strategy so that they could continue to inspire terror and cause people to flee from the diamond mines that they wanted to control.

SANCHEZ: We live in a country where we think things like this could be controlled. How is it possible that they can be stealing diamonds or working them on the black market? Something as important and as precious to their economies without it being somehow controlled?

CAMPBELL: Think first of all about the commodities seeking to be controlled. They're untraceable pebbles. Diamonds are practically impossible to detect. They don't set off airport metal detectors and once they leave the scene of the crime so to speak, they are practically impossible to tell where they came from.

SANCHEZ: Wait, they have to be mined, don't they? Can't the government put somebody at the base of the mine and check and see who is going with what? Or leaving with what I should say?

CAMPBELL: In the case of Sierra Leone, you're talking about a very undeveloped country, and when the RUV rebels invaded in the early 1990s, they simply went in at gunpoint and killed everyone who was inclined to resist their movement, and then as gunpoint, they forced prisoners of labor -- and prisoners of war, sorry, and forced laborers to mine the diamonds for them.

SANCHEZ: And you saw this firsthand. You went to one of the mines yourself in Sierra Leone at your own peril imagine, right?

CAMPBELL: I did. I was fortunate enough to go to a government- controlled mine, it was a mine that had been culled for diamonds by the RUF a few months beforehand. But when we arrived it had actually been reclaimed by the government but indeed it was quite an unindustrialized mine. It's a matter of, it's a throw back to the California gold rush days with looks like guys panning for gold out there.

SANCHEZ: You know what's interesting is I hear you talk. Yesterday we did an interview with Russell Simmons, the big pop mogul, and he said people should continue to buy diamonds because if they don't it will ruin the economies of Africa. Which is it? Should we be concerned about, is it a matter of which diamonds we buy and how do we know the difference?

CAMPBELL: Yeah, that's pretty much the heart of the matter. You just hit on all of it. You know, diamonds are very critical system of the only few stable countries in Africa and for instance, Botswana, Namibia, South Africa, all of those countries rely on continued sales of diamonds throughout the world. So the question comes how do you know which diamond came from where?

And you know, frankly, it's practically impossible to tell. The industry has done some measures in order to try to police and guarantee these diamonds as they move from border to border but there's still quite a long way to go before customers can be completely certain that their diamonds are conflict-free.

SANCHEZ: Well, here it is. The book is called "Blood Diamonds." Courageous endeavor on your part. Good read. We thank you, Mr. Campbell, for being here and sharing that with us.

CAMPBELL: Thanks very much, Rick.

A car crash in a Paris tunnel, a princess, billionaire's son and a driver killed and nothing but questions ever since. Now the bombshell report from a British newspaper that U.S. intelligence was listening in on Princess Diana's phone calls just before her fatal crash.

It's a story CNN has not independently confirmed. Here is Alphonso van Marsh with what we do know at this point.

(BEGIN VIDEOTAPE)

ALPHONSO VAN MARSH, CNN CORRESPONDENT (voice-over): According to British newspaper "The Observer" a new government report found U.S. intelligence was eavesdropping on Diana's phone calls hours before her fatal accident in 1997. CNN has not independently confirmed this report, but we continue to try to verify the story.

Meanwhile, other details of the report led by Britain's former top cop are leaking out to the British press. Details that could end speculation on how and why one of the world's most recognized women died on August 31st, almost a decade ago.

UNIDENTIFIED FEMALE: It's hard to see how he will conclude the crash with anything other than an accident.

VAN MARSH: A BBC documentary looks at events before and after the car crash that killed Diana, her companion Dodi Fayed and driver Henri Paul. In the documentary it is revealed that the report is expected to conclude that, claims that Diana was pregnant and planning to marry Fayed are not incredible and driver Henri Paul was three times over the French drunk driving limit when their car crashed in a Paris tunnel.

MARTINE MONTEIL, HEAD OF FRENCH INVESTIGATION (through translator): There was a horde of photographers who were following the couple and they were very close to the Mercedes when the accident happened. Obviously, this causes annoyance and stress. But it is not the only explanation. The driver also lost control of the car. That's obvious.

VAN MARSH: Dodi Fayed's father, a London businessman Mohammed al Fayed has long maintained that the crash was no accident, but part of a British agent murder plot to keep Diana from marrying his son, an Egyptian Muslim. Al Fayed believes authorities likely switched the driver's blood samples with those of a probable suicide victim with alcohol and drugs in his body, something he has not been able to prove.

He's indicating that the BBC has fallen for a cover-up. Through a spokesman, al Fayed says the BBC documentary quote "has fallen into a trap deliberately laid for it." Others who knew Diana say people must accept the report results when they are officially released.

ROSA MONCKTON, FRIEND OF DIANA: I hope that now once and for all a line can be drawn under this. It was not a conspiracy. It was a tragic accident.

VAN MARSH: The report is expected to be taken into evidence as part of preliminary hearings into a government inquest into Diana's death. The inquest, expected to be open to the public, is slated to begin early next year. Alphonso Van Marsh, CNN, London.

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SANCHEZ: Iran, Iraq, corruption in Washington. It was all on the agenda as politicos made the rounds of the Sunday talk shows. We're going to have some of the highlights in case you missed it.

Also the essentials that you are going to need to survive when stranded. Kareen Wynter helps you put it all together in your own survival kit.

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(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: Hurricane and earthquakes cause devastating destruction but one company hopes to nail down the problem. Stanley Bostitch is one of the leading manufacturers of fastening tools and their lead engineer Ed Sutt and his team have come up with the ultimate nail.

DR. ED SUTT, FASTENER ENGINEER, BOSTITCH: A hurriquake nail is a high performance fastener that can give you up twice the resistance to wind uplift forces and up to 50 percent more resistance to earthquake- style forces.

UNIDENTIFIED MALE: The company has a state-of-the-art facility that tests building supplies by recreating conditions of natural disasters.

SUTT: The benefits of the nails are really the value. For a very small incremental cost of building your home, you can get a much more durable product, a much longer lasting home. In the event there's a natural disaster you've got a better chance of your home structural system being able to resist that type of force.

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SANCHEZ: Rick Sanchez in the CNN NEWSROOM. Let's bring up to date again on what is going on in Chile. We've been showing you pictures throughout the night of some of the demonstrations and some of the violence that some of the protesters are using, defying essentially the government, trying to put their flags at half staff in remembrance of Augusto Pinochet who died today at the age of 91. What you're looking at now is quite the opposite, people who in many case revere Augusto Pinochet, and now back to some of the fires that were burning earlier, the fires of course are those who are celebrating the death of Pinochet, because they say he was a brutal dictator.

In another part of the city there are people not celebrating the death, in fact they are memorializing him, that's where you saw some people praying there near that sidewalk. We're going to try to keep tabs on the story as it develops throughout the night. But certainly a difficult situation there in Santiago.

In case you missed it let's check some of the other highlights from the Sunday morning talk shows on this date. Very, very busy day and very busy morning as well on CNN's LATE EDITION, Israel's vice premier was asked if his government would give up the golden heights' event that Syria changed course and agreed to a full peace deal with Israel. Here is his answer.

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SHIMON PERES, ISRAELI VICE PM: I don't see the change of heart. The present government says Israel is seeking a full-fledged peace with everybody, but the Syrians are connected with Hezbollah. The Syrians are hosting the headquarters of Hamas. The Syrians don't want to meet with us. So I mean, as a wish, I'm all for it. The problem, is it more than a wishful thinking? I wish it would be a reality.

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SANCHEZ: Meanwhile the Iraq Study Group report prompted some heated debate today. Iraq's president opposes many of the ISG recommendations, including one that would make U.S. aid to Iraq conditional. The panel's co-chair, Lee Hamilton defended his position on CNN's LATE EDITION.

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LEE HAMILTON, IRAQ STUDY GROUP CO-CHAIR: Up until this point, we've given a blank check to the Iraqis and I'm not surprised that the president would like that sort of a deal, but we believe that the American people want our aid to be conditional. We want that aid to be given only if there is a response from the Iraqi government that shows performance.

I do not believe that the American people want to extend $8 billion a month to Iraq, to a government that is not doing enough to stop the killing in Iraq.

(END VIDEO CLIP)

SANCHEZ: Meanwhile, on CBS's FACE THE NATION, the incoming chairman of the Senate Armed Services Committee had this to say about the ISG report.

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SEN. CARL LEVIN, (D) MI: The report says there is no military solution in Iraq, there is only a political solution in Iraq, and only the Iraqis can achieve that, and one way to put pressure on the Iraqis to achieve that political solution is to tell the Iraqis that we're going to begin to reduce the number of our combat forces in Iraq.

UNIDENTIFIED FEMALE: This is essential. You need to have basic supplies to get you, so that you can survive on your own for up to a week.

(END VIDEO CLIP)

SANCHEZ: Do you have those supplies? It could mean the difference between life and death, as I found out on my trip to Colorado. What we're going to have, a survival checklist for you. You are watching CNN, the most trusted name in news.

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SANCHEZ: Well, it's that time of the year. It is snowing out there. Where, Bonnie Schneider? Where is it?

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SANCHEZ: Good for skiing. Thank you, Bonnie. Appreciate that report. Last week's family tragedy in the Oregon mountains drove home a frightening reality. A wrong turn and bad luck can quickly pit you against all of the elements. Here is CNN's Kareen Wyter on the power of preparation.

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KAREEN WYNTER, CNN CORRESPONDENT: (voice-over): Weather conditions and natural disasters so extreme.

UNIDENTIFIED MALE: On top of the rooftop waiting for rescue.

WYNER: Encountering these harsh elements can be a matter of survival. From severe flooding and snowstorms to killer tornadoes, earthquakes and hurricanes, experts say it's easy to protect yourself even in the worst of weather, but only if you're prepared.

JOYCE HARRIS, L.A. COUNTY OFFICE OF EMERGENCY MANAGEMENT: These are emergency supplies you have on hand then when something happens, a kit, like you say, could make the difference between life and death.

WYNTER: Joyce Harris is with the Los Angeles County Office Of Emergency Management.

(on camera): All of these products we're seeing here, everyone should basically have these if you find yourself stuck in your car or stranded in your own house. This is essential.

HARRIS: This is essential. You need to have some basic supplies to get you -- you can survive on your own for up to a week.

WYNTER (voice-over): Simple items such as a survival blanket, a whistle to blow for help in case you're trapped. A first aid kit, packaged food bars, water, and of course, a portable radio.

(on camera): This is important because?

HARRIS: That's important because after a disaster happens, all of your power will go out, and so you need to know what's going on around you and so having a radio you can turn to your local stations and make sure that you get the information that you need.

WYNTER (voice-over): Another must have? Flashlights and light sticks.

(on camera): This could also serve as a beacon for help.

HARRIS: It certainly could, yes and that's important if you're in your car because you don't want to, you want to stay in the safety of your car but you might want, you want to signal for help as well.

WYNTER (voice-over): Harris says you can find most of the vital items at your nearest supermarket and it doesn't cost much.

(on camera): Once you're in an emergency you can't go out and get any of this stuff. HARRIS: That's right. You can't get it because the roads may be damaged, the power is out. You won't be able to call 911 for help. So it's real important to have all of these things so that you can survive on your own for at least a week.

WYNTER: Precious time that could make all the difference, until help arrives. Kareen Wynter, CNN, Los Angeles.

(END VIDEOTAPE)

SANCHEZ: Speaking of survival tonight at 10:00 I'm going to have part two of my series where I spent the night in the Rocky Mountains and then part of that series will also be on the PAULA ZAHN NOW special, which you'll see, "Stranded, the James Kim Ordeal," a special Monday at 8:00 p.m. Eastern only on CNN.

Much more ahead on CNN, up next, CNN PRESENTS "Combat Hospital." A frantic fight to save wounded trips. That starts minutes from now. I'm Rich Sanchez. Lots of news and we'll continue to follow it throughout the night. CNN PRESENTS is next.

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