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Obama Holds First Campaign Rally in Iowa; Using Contractors in the War; Blackwater Supplies Armed Military Support; Lauren's Law in Schools; Putin Criticizes U.S. Foreign Policy; Jennifer Hudson on "Larry King Live"

Aired February 10, 2007 - 17:00   ET

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


RICK SANCHEZ, CNN ANCHOR, NEWSROOM: We've got a whole lot going on, including the stories she mentioned about what's going on in the Bahamas, really a complex situation. That and a whole lot more. Here we go.
(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: In the face of war, we believe there can be peace. In the face of despair, we believe there can be hope.

(END VIDEO CLIP)

SANCHEZ: He may be new to the game, but Senator Barack Obama says he is ready to play. Just hours ago, he made his race for the White House official and we are waiting to hear from him again this hour. We'll bring it to you.

Also, when it comes to the elements, be careful what you wish for.

REGGIE AQUI, CNN CORRESPONDENT: It seems like just as soon as these folks behind me shovel out and finally get the streets looking good again, it snows again. This has been is the story all week long here in Oswego County.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I was told he was still alive when they tied him to the back of that truck and drug him through the streets of Fallujah.

(END VIDEO CLIP)

SANCHEZ: One mother demands answers. Her story is just part of the debate over civilian contractors in Iraq.

And hello again, everybody. I'm Rick Sanchez. You are in the NEWSROOM on this hot political day. Senator Barak Obama blazing the campaign trail, fresh from his announcement that he's running for the presidency. CNN senior political correspondent Candy Crowley with us now from Obama's town hall meeting in Iowa.

Not to be outdone of course Senator Hillary Rodham Clinton. Also out campaigning, our Mary Snow is going to be joining us live with the Clinton camp and several Republican contenders and presidential hopefuls including some of the big names. Also in the spotlight on this day, we're going to begin though with Candy and Obama's big push for '08. Good to see you Candy. What do you got?

CANDY CROWLEY, CNN CORRESPONDENT: Good to see you. Where do you go after you announce your presidential campaign but you go to Iowa? So we are here in Cedar Rapids, Iowa where Barak Obama is getting ready to hold a town hall meeting. Earlier, he was in Springfield, Illinois. The site of the capital is where Obama was a state senator for seven years and, of course, for the past two now, he's been a U.S. senator and it was to those who suggest that Obama has not enough experience to be president that he focused some of his first words.

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OBAMA: I recognize that there is a certain presumptuousness in this, a certain audacity to this announcement. I know that I haven't spent a lot of time learning the ways of Washington. But I've been there long enough to know that the ways of Washington must change.

(END VIDEO CLIP)

CROWLEY: Now, there were two themes that Obama hit in his announcement speech. One of them bipartisanship, talking about his experience in the Illinois state legislature when he says he reached across aisles to see what can be done with people of common good come together. He also talked a lot about a new generation, that seemed directed to Senator Hillary Clinton, Obama being a post-baby boomer candidate. Hillary Clinton, of course, being a baby boomer candidate. So he talked a lot about a new generation needing to step up to the plate and one of those plates he mentioned was in the post-9/11 world.

(BEGIN VIDEO CLIP)

OBAMA: Most of us all, let's be the generation that never forgets what happened on that September day and confront the terrorists with everything we've got. Politics doesn't have to divide us on this anymore. We can work together to keep our country safe.

(END VIDEO CLIP)

CROWLEY: Rick, it was quite a crowd out there in Springfield in the multi-thousands standing in single digit territory, waiting for him two and three hours. Not just from Illinois, we talked to people who came from as far away as Kansas, Topeka, Kansas, someone from the Ozarks in Missouri, so plenty of people there from outside Illinois. From here, it is a couple more stops in Iowa and then, of course, where else would he go and where else would he be but Monday but in New Hampshire? Rick?

SANCHEZ: By the way, as I was watching the speech, it was just so eloquent. Anybody I imagine who knows about these things would say that he certainly nailed it and I'm curious, was he using one of those mirrored teleprompter things or is he just that eloquent? CROWLEY: You know, he did have a teleprompter but he is also that eloquent. I mean, you've heard him when he talks extemporaneously. He is a very good orator, a very good public speaker.

SANCHEZ: How's he going to the handle the question -or did he in the speech -- I didn't catch it, on, you know, what everybody seems to say that he really doesn't have that much experience. He hasn't been in Washington that long to be able to seek the top job.

CROWLEY: Well, he did say, listen, I know I haven't been, you know, in Washington long enough to learn the ways of Washington but, in fact, I've been there long enough to know that Washington needs to change its ways. Look, he is selling himself as a fresh face in the best of ways. This is a country that seems hungry for something different. He is selling himself as that new face, not like as Senator Hillary Clinton who obviously has been on the political scene for sometime. So he's trying to take what seems like a deficit to some people and make it into an asset.

SANCHEZ: Yeah. Turn your limitations into an advantage. Well said. Candy Crowley, as usual, thanks so much for bringing us up-to- date on that.

Now the candidate that many consider Obama's chief rival for the Democratic nomination, Hillary Rodham Clinton, getting her message out to New Hampshire voters as well. CNN's Mary Snow is joining us now live from the Clinton event in Concord. How is that going Mary?

MARY SNOW, CNN CORRESPONDENT: Well, Rick, it ended just a short time ago. You can see workers here quickly transforming this back to a gymnasium, but a short time ago, this was packed with about 2,000 people. This is the first trip that Senator Clinton has made to New Hampshire since 1996 when she was first lady. She received a warm reception here. But she also received some tough questions about Iraq, including one from a Monique Cessna (ph) who was in the audience here.

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UNIDENTIFIED FEMALE: I just have to know the answer to this question. You said that if you were president in 2002, you would have not gone into war.

SEN. HILLARY CLINTON (D) NEW YORK: Right.

UNIDENTIFIED FEMALE: However, how can you then explain the seeming contradiction from your voting to support the invasion in Iraq and that statement?

CLINTON: Well -- I'm glad you answered that. You know, I do not believe that most of us who voted to give the president authority thought he would so misuse the authority we gave him.

(END VIDEO CLIP)

SNOW: Now, we caught up with Monique Cessna after this event and I asked her whether she was persuaded by Senator Clinton and said she was satisfied with her answer and that she would support her. Others say they're holding out, they're on the fence and it's way too early to commit their support. Despite the fact that Senator Clinton got a warm reception here, crowds gathered around her to take pictures and get her to sign books. She is leading in the polls here in this state but she told the crowd here today she intends to get their support from what she called the New Hampshire way, by meeting with people, going to diners, going into their homes and tomorrow she will be going into some political parties in homes meeting one on one with residents of New Hampshire and she will also have another town hall meeting. Rick?

SANCHEZ: The nature, Mary, of the really challenging questions that she is being asked, I can't help but wonder, is anyone screening this crowd? Is it come one, come all? Are the Dems being careful to get the right people in the seats or possibly even is it working the other way and are some of her detractors making sure they have people in the audience?

SNOW: It's so difficult to say with these crowds. People waited to get in her for tickets. I was talking to one woman who said that she feels people in New Hampshire feel that they have a responsibility to ask questions for the rest of America. And she was clearly a Senator Clinton supporter, but said people have no qualms about asking tough questions and certainly when you talk to people who came here today, so many of them said that Iraq was such a big issue and that they really wanted to hear what she had to say.

SANCHEZ: Yeah. The big question, of course, Iraq from your report and many others that are coming out of there. Mary Snow, we thank you so much for bringing us up to date on that part of the story.

Remember, CNN is home to the best political team in television. It's also the place to see the first presidential debates of the new campaign season. Mark your calendar for April 4th and 5th, that's April 4th and 5th. CNN will co-host the Republican and Democratic debates live from New Hampshire.

At least four Republicans also making the presidential push today. Former Arkansas Governor Mike Huckabee looking for votes in New Hampshire, had a meeting with business leaders there. Huckabee declared that a loss in Iraq would doom U.S. culture. Elsewhere across the nation, former Massachusetts Mitt Romny and Kansas Senator Sam Brownback are addressing the state Republican convention in Michigan. Former New York Mayor Rudolph Giuliani speaking at the state Republican convention. That's in California.

Civilian contractors in Iraq, dangerous and controversial job. Well, in 20 minutes, a mother's fight to learn the truth about her contractor's son's death.

(BEGIN VIDEO CLIP)

TRANSLATOR: One state, the United States has overstepped its national borders in every way. (END VIDEO CLIP)

SANCHEZ: We're going to take you to a security conference overseas. It sees (ph) an ally slam the United States. Question, is it really an ally? How the White House is going to respond or will it?

Also this guy, we've gotten used to you Reggie. Where are you now?

AQUI: Rick, welcome to Mexico, Mexico, New York. Not a whole lot of margaritas but about, oh, I don't know, 80, 90 inches of snow. That story is coming up when the NEWSROOM continues.

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SANCHEZ: And we welcome you back to the CNN NEWSROOM. I'm Rick Sanchez. The other big story capturing our attention on this day has little to do with politics and really it's a shame that's it's gotten to this, but this is what it's really all about. It's a looming battle now over the fate of Anna Nicole Smith's newborn, Danielle Lynn. Rusty Dornin in Nassau, the Bahamas where the baby is or we understand was when last we checked. I understand there's some questions going on as to whether the baby is there, who has the baby, who might want to get the baby. Rusty, what's going on?

RUSTY DORNIN, CNN CORRESPONDENT: Well, the legal battles that really plagued Anna Nicole Smith during her life rage unabated only days after her death, Rick, and it is not only where her child Danny Lynn is. It's also who owns the house she's been living in and we had a front row seat to that whole issue this afternoon. We went to the house where she's been living with the attorney who was the original owner. Now, he was taking us there, showing us around the locked gates and during the time we were there, an entourage pulled up of several SUVs with security crews and a television crew and they were allowed onto the estate and then they told the attorney for the former owner to get off the property. A few minutes later, Wayne Monroe, who was an attorney for Anna Nicole Smith, arrived. He had a paper from the court and he said he had a temporary injunction claiming that the house was his.

Now, what the problem is, is Anna Nicole Smith apparently claimed she wanted to buy this house but she never really put up any money and the former owner said, look, if you sign this paper, pledging me some of your millions if you ever get it, you can have the house. She never signed that piece of paper. And says legal debate has been going on for the last few months about who owns the house. There is also some questions about this entourage of who was in this entourage besides the television crew and the security folks. Of course, the big buzz on the island is where is the baby? Where is Danny Lynn and there are some folks who do believe that now that Danny Lynn is inside that house somewhere. But we can only be guessing when we do say that, Rick. Although her attorney said that the only people that have the right to go into that house are Howard Stern and the baby. So, the question remains, of course, how this custody battle is going to unfold. SANCHEZ: That's the question. Has Howard K. Stern been given temporary custody of this baby, Howard K. Stern of course being her, I guess we should say her Bahamas husband, right?

DORNIN: Right. Well, not really husband because it was supposedly only a commitment ceremony, but the key is his name is on the birth certificate. The baby is not a Bahamian citizen though just because she was born in the Bahamas. They don't allow that because the parents were not Bahamian citizens. The baby is an American. Danny Lynn is an American citizen but she is here. The attorney for Anna Nicole Smith said she's never left the Bahamas. She's been here the whole time being taken care of by family and friends and that sort of thing so they do expect some kind of battle to ensue but the jurisdiction, the first court of jurisdiction it looks like is going to be here in the Bahamas.

SANCHEZ: So right now, who has custody of the baby? Really, nobody knows. People are taking care of her, that's all we can say?

DORNIN: Howard K. Stern, Howard K. Stern would have the first rights to the baby because his name is on that birth certificate. The attorney for Anna Nicole Smith did tell us that the grandmother has been is in town and trying to gain her rights. He said Anna Nicole Smith was estranged from her family. He knew it was her wishes or he feels it was her wishes that the baby not go to her family. So, he's feeling very strongly that the baby should remain for now with Howard Stern and where that is we're not sure but it's looking like the house where she'd been living.

SANCHEZ: Our friend and yours, Rusty Dornin trying to put it all together. You need a law degree to try and figure this thing out. It's turning into a bit of a mess and how sad for that. Rusty, we thank you for bring us that story and we'll check back with you.

Enough already. That could be the battle cry for upstate New York, a region buried under mountains of snow and guess what? More we understand is on the way. Let's take you now to Mexico. Mexico? Well, yeah. That's where CNN's Reggie Aqui is standing by. Tell them where you are, Reggie.

AQUI: Rick, they said you're going to Mexico. You can imagine delight on our faces until we got here. Not that there's nothing wrong with this Mexico, Mexico, New York. Well, I guess I should say there is something wrong with it because right now they're experiencing so much snow that even these people who are really used to this kind of stuff are astounded with how much they're getting. I'm 6'4", so I'm a tall guy and hardly anything is as tall as I am. But this snow drift is taller than I am. That is what folks are facing out here.

We are talking about snow falls that in a week have totaled anywhere between six and 10 feet and as you can see probably see on the television screen, that snow continues to come down at this hour and that's what it's been like every day. This is all lake effect snow, so it's very localized. It's only happening right around the lake, Lake Ontario up here. But where it's happening, it is hitting very, very hard.

And we actually talked to the mayor of this town, Mexico, a few minutes ago and he tells us that he does have a concern now for the weight that the snow is going to have on the roofs around here. Already, he's seen a couple of residents, including a barn just down the way here collapse because of the snow. Luckily, no one injured so far but he does worry what will happens in the next few days if we get the predicted amounts that some meteorologists in this area are saying that we're going to get and could be another foot to two feet over the next couple of days because we are not going to be over here until about Monday morning when this lake effect snow advisory is finally lifted. And as I said, these folks are used to having a lot of snow every year but they're used to having this amount the whole winter. So to have that all in just one week is really pretty amazing.

SANCHEZ: It's amazing to look at that. It's amazing to just see how much snow -- are those like drifts or banks or is that just snow that accumulated there? I mean, those were plowed there, right?

AQUI: A lot of -- they've been plowing 24 hours a day, Rick, in this area and they've been doing a heck of a job really so a lot of their drifts, the plows that also pushed the snow out of the way. Where I'm standing right now, they've obviously plowed it. But at one point, it was, you know, anywhere between five and seven feet tall, some places up to 10 feet tall.

SANCHEZ: Reggie, thanks so much. You're always in the most interesting of places and that's why we always love to talk to you. Good job, you big 6'4" guy you.

For more on that massive snowfall in New York and the forecast for the rest of the country, let's turn now to our meteorologist, our favorite Jacqui Jeras. She's standing by in the CNN weather center and she's not 6'4" but boy, she packs a punch.

JACQUI JERAS, CNN METEOROLOGIST: 5'7", put a five-year-old on top of me and that's about how tall the snowdrifts are.

SANCHEZ: .. five-year old.

JERAS: No problem. Bring her on over, him on over. More snow on top of that, too by the way, Rick. The lake effect snow band still coming on in and off of Lake Ontario. We'll zoom in for you and right about here is where Reggie Aqui is so he actually has a little bit of break from the really intense snow band that is putting down a good two, three, fourth inches per hour and we also had some live reports earlier in the week from Rob Marciano over in Oswego where they've had just a less inches, like 80 plus inches here. We are talking 90 to 100 inches just over here.

You get higher into the elevations and that helps enhance some of those heavier snow bands and how narrow is this band, too, by the way. We've had about 100 inches here in Paris and this really stretches across maybe only 20 miles. So just to give you an idea of how localized this is. We are expecting the vetch (ph) to still be across the long way of the lake so snow warnings still in effect here through Monday morning, an additional one to two feet on top of what they have. Our I-reporters in addition to Reggie Aqui doing a great job showing us some of these pictures really helping to tell the story there off of Lake Ontario. The first one we want to show you from our I-reporter, this is from Shannon Scott. She's from Washington, DC but this is a picture of her Aunt Renee from Mexico, New York. And if you look real closely in that little dugout hole there Rick, you can see a mailbox and that's the top her house that you see in the background. She's trying to dig out the driveway.

Then Anna Lee Kenner from Mexico also gave us a picture. We heard Reggie talking about how the barn collapsed. Well, we could show you our next house there, look at how heavy that snow is. You've got a peaked roof, that's eventually going to kind of fall off but if you've got a level surface, you really need to get up there and bring some of that snow off your roof or you could be looking at some roof collapses on your house, not just your barn. And really quickly, right before we leave, I have to tell you about the next storm system.

Normally I just talk about today or tomorrow but we've really got to look ahead in the week because there's a real powerful storm coming in from the west. It's going to redevelop east of the Rockies, severe weather in the south on Monday. Icy and snow conditions across the middle Mississippi River valley into the Ohio River valley and as it's heading eastward, where it's just going to pull off the coast of the mid Atlantic bringing some heavy snow to DC Tuesday into Wednesday and potentially I hate to say it, a nor'easter. Still iffy at this time, Rick, but it's looking significant enough that we at least have to mention it this far out. This could be the big talker over the next couple of days if not the year. We'll keep you updated on that.

SANCHEZ: You know what happens. You remember when you lived in Minnesota, you'd run out of places to put the snow. It accumulates. You push it with the snowplow but there no more place to put it, so then it starts using most of your driveway. Then there's no place to put your car, right?

JERAS: That's right and that's what happened in Denver, too, by the way, just last week. They rented some snow melting machines. It can melt like 200 tons of snow in an hour. So they didn't have anywhere to put their snow in Denver, either. They're having to ship it out and melt it down.

SANCHEZ: Good idea. Thanks so much. We'll talk to you in a little bit.

Meanwhile, Barack Obama. He's in the news. I think we've got some pictures, do we. Let's see if we can go ahead and put those up. We'll talk about what's going on. These are live pictures that you're about to see here and there he is once again. You heard unless you've joined us late that he made his big announcement today, made official essentially what most of us already knew, that he was announcing his bid for the presidency. We'll be following this by the way. He is in Iowa, still. (INAUDIBLE) If he starts to speak or when he starts to speak, maybe we'll dip in a little bit.

Meanwhile, working in a war zone when you're not a soldier. Coming up from the NEWSROOM, we're going to be following that, as well. It's the controversy surrounding some civilian contractors who are in Iraq right now.

And then just ahead, recycling on the fly. How airports are throwing away big bucks by throwing away their trash. You are watching CNN and we are the most trusted name in news.

(COMMERCIAL BREAK)

SANCHEZ: Hey. There's Barack Obama and he's live no less. As a matter of fact, we are going to be following him because he made his big announcement today. That was somewhat expected. These are live pictures. The man's taken off his coat, so you know he means business. He's in Cedar Rapids, Iowa, right now. He's going to be talking to all kinds of people and we'll be there following him all along the way.

Meanwhile, in San Diego, California, training at a Marine military base has been put on hold while investigators determine what caused a deadly accident there. A seven-ton truck overturned today, killing one Marine and injuring 16 others.

Also a woman poised to crack Harvard's glass ceiling. (INAUDIBLE) Tomorrow Drew Glippin Fous (ph) is expected to be chosen the school's 28th president. Harvard has never had a woman president but three other Ivy League colleges already do.

City of brotherly love is turning its back on trans fat. This fall, Philadelphia will become the second big city in the United States to ban the so-called bad fats in restaurants. Doctors say trans fats increase the risk of heart disease.

Now a little trash talk about, well, trash and exactly what airports in the United States are doing about it. Here to bring you that messy story is CNN's Gary Nurenberg.

(BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT (voice-over): Ever what happens to all the stuff you throw out at security check points? Chances are good the junk ends up in a landfill.

ALLEN HERSHKOWITZ, NATURAL RESOURCES DEFENSE COUNCIL: Frankly, America's airport haves a fairly dismal record when it comes to recycling.

NURENBERG: Allen Hershkowitz authored the study "Trash Landings." He says airports throw out enough paper every year to cover a football field with a stack 230 feet high, enough aluminum to build 58 jumbo jets. Airports simply have other priorities.

TOM ZOELLER, AMERICAN ASSN. OF AIRPORT EXECS: Security continues to be a paramount concern. Their concern is making sure that passengers are being screened as quickly as possible so they can make their flights.

NURENBERG: But some airports are ahead of the recycling curve.

UNIDENTIFIED MALE: We do about 200 tons of trash and 20 percent of that is recycling.

NURENBERG: Those are monthly figures at Thurgood Marshall Baltimore Washington International. Inside, recycle bins have separate drops for garbage, newspapers, plastic and glass bottles and aluminum cans, which can provide some healthy revenue.

RICHARD KELLER, MARYLAND ENVIRONMENTAL SERVICES: As much as $1800 a ton or 90 cents a pound if you have a truckload of aluminum.

NURENBERG: BWI has recycling outside, as well. Why on the tarmac?

UNIDENTIFIED MALE: The reason for that is so the tenants use it to unload the planes or people coming in, drop in the card board.

NUREMBERG: Recycling cardboard is key.

UNIDENTIFIED MALE: Just about everything comes in card board.

NURENBERG: He says keeping cardboard out of trash chutes saves $5,000 a month in maintenance costs. In Seattle, the airport cuts costs composting its coffee grounds.

(on camera): One of the biggest problems for airports is having people who use the terminal not know that recycling is available.

UNIDENTIFIED MALE: I don't think the recycling information is out as conspicuously as it could be.

NUREMBERG (voice-over): Airports have incentive to do better.

ALLEN HERSHKOWITZ, AUTHOR OF "TRASH LANDINGS": Those airports that do recycle save substantial amounts of money.

NUREMBERG: The bottom line that could change the way American airports do business.

Gary Nuremberg, CNN, Linthicum, Maryland.

(END VIDEOTAPE)

RICK SANCHEZ, CNN HOST: As we roll along here, weapons of war, who's making them? The U.S. says they have new evidence.

Also, the job of an American civilian in Iraq grows more dangerous every day. And by the way, there are more of them.

We'll be back.

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SANCHEZ: And we welcome you back to the "CNN NEWSROOM." You're looking at it right their, the place of controversy, the place of, well, an awful lot of bloodshed lately. They were searching for weapons, but walked into a death trap.

The U.S. military is saying that three members of a task force, Lightening, were killed Friday when an explosion just ripped right through the building that they were searching in the Diyala Province.

The soldiers were searching for a hidden weapons cache. Their deaths bring the number of Americans killed in the war now to 3,120.

In fact, we are just getting confirmation this afternoon that two private contractors were shot by U.S. forces Monday in Iraq. Sounds like a case of friendly fire, but it's another case of bloodshed in Iraq. One died, one survived. Both were truck drivers for Halliburton or its subsidiary, KBR, Kellogg, Brown and Root.

The company says that the incident happened near the U.S. air base in Balad. This coming as Congress investigates whether some private firms have put profits before their people when it comes to security.

Let's look into this. And who better to do it than CNN's Andrea Koppel?

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN CORRESPONDENT (voice-over): March 31, 2004, a pivotal moment in the Iraq War. Four American contractors working for a private security firm are ambushed, burned and strung up on a bridge in Fallujah.

One of them, 32-year-old Scott Helvenston, was, like his comrades, a former Navy Seal and father of two.

In emotional testimony, his mother told the committee she believes the firm Blackwater, USA, failed to provide the men the security they had been promised.

KATHRYN HELVENSTON-WETTENGEL, MOTHER OF STEPHEN HELVENSTON: I was told he was still alive when they tied him to the back of that truck and drug him through the streets of Fallujah. And that was before they decapitated him, dismembered him and torched him.

KOPPEL: Helvenston and other family members told lawmakers they've been forced to sue Blackwater in hopes of finding out what happened.

DONNA SOVKO, MOTHER OF JERRY SOVKO: The simple plain truth -- Ms. Sovko, Donna -- this is what happened.

KOPPEL: Chairman Henry Waxman read aloud an e-mail from Blackwater's operations manager in Baghdad complaining about poor security. The e-mail was sent just one day before the Fallujah ambush.

REP. HENRY WAXMAN, (D), CALIFORNIA: Quote, "I need new vehicles. I need new coms," which means communications devices. "I need ammo."

KOPPEL: Waxman then turned to Blackwater's chief counsel, Andrew Howell.

WAXMAN: When Blackwater sends private forces into a war zone, do you have an obligation to equip them adequately? And I assume you have to say yes. Then my next question is, did Blackwater meet in obligation in Fallujah?

ANDREW HOWELL, CHIEF COUNSEL, BLACKWATER, USA: Yes, we did.

KOPPEL: Jeremy Skahill has written a book on Blackwater.

JEREMY SKAHILL, AUTHOR, "BLACKWATER": It's like the O.K. Corral in Iraq right now. You have these unregulated, unchecked armies running around the country, many of them are just soldiers for fortune. They hire Special Forces operators from around the world. What are they doing in Iraq?

KOPPEL: Since 2004, some 30 Blackwater employees have been killed in Iraq, most recently, just last month, when five guards were killed when their helicopter was shot down in Baghdad.

Andrea Koppel, CNN, Capitol Hill.

(END VIDEOTAPE)

SANCHEZ: Let's bring in somebody that knows a little bit about this, author and filmmaker Robert Young Pelton. He's joining us. His most recent work, "License to Kill." It deals with private contractors in Iraq.

Let's start with the numbers. We see a bunch of soldiers from the United States representing our country. And then we see these other guys. Who are they? And how many are there in comparison to the soldiers?

ROBERT YOUNG PELTON, AUTHOR, "LICENSE TO KILL": Well, Rick, in my estimates, there's more actual contractors working in Iraq than soldier, about 150,000 soldiers. It's well in excess of that. The U.S. military and the DOD has estimated there's at least 100,000. But they also say they don't know. Organizations have said it was 70,000 armed contractors in Iraq.

SANCHEZ: You are saying -- well, let me stop you. That's an incredible number. You're saying there's as many contractors as soldiers. Who's in charge of these guys? Because I know who the soldiers answer to. But who do these guys answer to?

PELTON: Well, contractor answer to their employer or their client. And obviously each client has a different reason for having contractors. So I think what Waxman is doing is very important. He's trying to get to the bottom of why we have so many private citizens over in Iraq doing our bidding.

SANCHEZ: And why do we?

PELTON: Because we don't have enough military. The equation is simple. Back in 1992, Dick Cheney hired KBR to figure out how they could use private industry to support military operations. And this is what's happened. The have become basically the tail that wags the dog.

SANCHEZ: The problem is -- and I think most people would look at this and be concerned -- these companies are making money, right?

PELTON: Well, absolutely.

SANCHEZ: So there's a profit in the war for them, as ugly as that sounds. So then there might be a reason to continue it, right?

PELTON: I think it is deeper than that. This war in Iraq was actually planned with contractors in mind. KBR was hired to rebuild many of the things that we would destroy. And the use of contractors has exploded, unlike any other war we have ever had.

SANCHEZ: So at this point, you'd say most of the contractors are doing some of the work there? Would you give a sense of what kind of work they're doing, by the way?

PELTON: The primary job of contractors is to help in the reconstruction. We need talented people over there to rebuild electrical plants, to assist in government functioning.

We also use them in the military. When you go into a chow hall, you'll walk past Nepalese security guards. And you'll see Pilipino cooks. They clean the toilets. They deliver the goods, as you mentioned the truck drivers from Halliburton. Most of our goods are driven in by Kuwait.

SANCHEZ: And who used to do this before, before we saw this sudden onslaught of contractors in these situations? Who would do those things? Who would peel the potatoes?

PELTON: That would be Sergeant Snuffy or Beetle Bailey. Remember the old cartoons. That's what soldiers don't need to be doing. They need to be fighting wars, not peeling potatoes.

SANCHEZ: OK, so we do need some contractors. But we don't want to get to the point where we have so many that we have companies in the United States running the war instead of the military officials and the people we elected, who were supposed to make those decisions. You get what I'm going at?

PELTON: Here's the problem. We were supposed to be doing an expeditionary war. Which mean, if you're going into Somalia for a year or six months, it makes perfect sense to have infrastructure provided by an outside supplier? You don't need to ramp up the military.

But in you're in Iraq longer than you are in Germany, during World War II, you need to rethink how we use contractors.

SANCHEZ: Let me throw one more thing at you. Was it President Eisenhower who says beware of the military-industrial complex? Was he right? PELTON: A very visionary man. And it's something that Mr. Waxman is trying to get to the bottom of right now.

SANCHEZ: Wow. Interesting information. Great stuff. Great interview. We thank you so much. Robert Young Pelton. We appreciate the information. Hope to talk to you again.

PELTON: Thank you.

SANCHEZ: The U.S. military is expected to brief reporters tomorrow, by the way, in Baghdad on some of the things that we were just talking about. And we are going to have the very latest on that information on the way as we continue to follow it.

Also, yesterday, the Defense Secretary Robert Gates said that serial numbers on some weapons used by Iraqi insurgents have traced back to Iran. He also said that U.S. raids in Iraq have turned up Iranians? A report released tomorrow. It's been delayed by several weeks while intelligence officials checked and rechecked it.

The White House still haunted by those faulty charges that Saddam Hussein had weapons of mass destruction.

New rules, at least in schools. Listen to this.

(BEGIN VIDEO CLIP)

MS. OBEL (ph), MOTHER OF STUDENT: No more cup cakes. No more cookies.

(END VIDEO CLIP)

SANCHEZ: That's right, kiddies. And sweet treats are getting a failing grade. Dr. Sanjay Gupta will have your report.

She wasn't good enough for "American Idol," but who's laughing now? Jennifer Hudson performing for CNN. You are in the "NEWSROOM."

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): Timmy Obel (ph) is celebrating his seventh birthday with his classmates.

TIMMY OBEL (ph), STUDENT: Bingo.

GUPTA: This year, the traditional cup cake is nowhere to be found.

OBEL: Yogurt with crunchies.

GUPTA: Timmy's mom is cooperating with the new guidelines.

OBEL: No more cup cakes. No more cookies.

GUPTA: Timmy's teacher applauds the change, saying her students behave better without the sweets.

LELANDA ANDRIA, TIMMY'S TEACHER: I noticed they're not quite as hyper. The candy, it really does do that.

GUPTA: Avalon Elementary School in Pittsburgh is one of many across the country interpreting the laws requiring that schools meet certain nutritional standards. It's all part of an effort to halt the surging obesity rate in children, now hovering at 20 percent.

As for negative reaction?

RICHARD STUEMPGES, PRINCIPAL, AVALON ELEMENTARY SCHOOL: I did not hear anything negative at all. And it kind of surprised me a little bit. They kind of appreciated it. And they saw the need for it.

REP. JIM DUNNAM, TEXAS HOUSE MINORITY LEADER: One cup cake a year is not going to decide whether a child is obese or not.

GUPTA: Others disagree. Texas House Minority Leader Jim Dunnam introduced Lauren's Law, named for his daughter, after learning her school banned any food brought in my parents.

The law, which passed unanimously, guarantees parents' right to send any type of food they want to school for special occasions.

DUNNAM: Anything that a parent wants to do, to be more involved in their child's education and do something special for their child, at school on their birthday, we shouldn't get in the way of that.

GUPTA: Instead, Dunnam favors better lunches and more activity for students.

Obesity expert Dr. Nancy Krebs warns that banning certain foods can have a negative effect.

DR. NANCY KREBS, OBESITY EXPERT: I think banning always carries some risk. Because to take away the special foods makes them even more desired.

GUPTA: Even at Timmy's school.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

SANCHEZ: There he is, still, Barack Obama. He's in Cedar Rapids, Iowa. And he seems comfortable enough to take off his coat and just have a discussion with some of the people there who may have some questions for him.

Earlier today, he was asked, by the way, why it is that he is running despite the fact that he doesn't have a lot of experience in Washington. And he said that's the reason I'm running. He said he's not impressed with those people who have experience in Washington. He wants to change Washington.

We'll be following Barack Obama on this day. Why? Because this is the day that he made his announcement, as we do with all candidates on the days that they make their announcements.

If you want more on that, you can go to Pipeline or cnn.com.

Taking you to London now. A sixth man charged in an alleged plot to kidnap and kill a British soldier. All of the suspects face charges under Britain's anti-terrorism laws.

U.S. Defense Secretary Robert Gates smiles at the annual conference in security policy in Germany today, despite Russian President Vladimir Putin's pot-shots at the United States. Mr. Putin says the United States used military forces breeding insecurity all over the world.

President Putin really not happy with Washington. In his speech today, he also said while he was in Munich that military might has backfired, prompting countries to seek weapons of mass destruction as well.

(BEGIN VIDEO CLIP)

VLADMIR PUTIN, PRESIDENT OF RUSSIA (through translator): One state, the United States, has overstepped its national borders in every way, in economics, in politics, in humanitarian, all imposed by one state. Who would like that? In international affairs more and more often we see -- we wish to resolve this or that question proceeding from political experience here based on current conditions. And this is very dangerous. It leads to a situation where nobody feels secure.

(END VIDEO CLIP)

SANCHEZ: Well, here's the White House response to President Putin's tirade.

Per National Security Council Spokesman Gordon Johndroe, he says, quote, "We are surprised and disappointed with President Putin's comments. His accusations are wrong. We expect to continue cooperation with Russia in areas important to the international community, such as counterterrorism and reducing the threat of weapons of mass destruction."

Also today, she is a Golden Globe winner and an Oscar contender.

JENNIFER HUDSON, "AMERICAN IDOL" CONTESTANT: "Idol" was a platform for me to be seen. I'm grateful for that experience.

Up next, Jennifer Hudson on how she got started and life after "American Idol."

You are watching CNN, the most trusted name in news.

(COMMERCIAL BREAK) SANCHEZ: That's Jennifer Hudson. Well, she's belting out a song from the movie "Dream Girls." Her performance in that movie has earned her an Oscar nomination.

She sat down again with Larry King last night.

(BEGIN VIDEOTAPE)

KING: We welcome to "Larry King Live" from the Beverly Hilton Hotel here in Beverly Hills, Jennifer Hudson, a Oscar nominee for her performance in "Dream Girls," a top five finisher on "American Idol's" third season. What a sensational year she is having.

And with her is Clive Davis, the ultimate record mogul and talent scout credited with discovering the likes of Janis Joplin, Whitney Houston, was instrumental in starting the careers of Billy Joel, Luther Vandross and Alicia Keys.

His company RCA Records signs "American Idol" winners and runners up to recording contracts.

Jennifer, at the time you entered "American Idol," what were your circumstance? What were you doing then before you got on to that show?

HUDSON: Wow, before "American Idol," I worked on a Disney Wonder Cruise Ship, singing and acting and, well, narrating the show on the ship.

KING: No kidding

HUSDON: Yes. Really.

KING: What that fun?

HUDSON. Yes. I mean, I was singing and learning of acting. So, yes, it was a great experience for me.

KING: After you were voted off the show, what happened in those interim couple of years before the film "Dream Girls"? What were you doing?

HUDSON: Still singing. I kept singing and performing for that "Idol" fan base you grow to have. And I would just do different shows and perform around, traveled a little bit.

KING: Was it very disappointing to be asked to leave?

HUDSON: Of course you're disappointed when you're first eliminated from "American Idol." But that only lasted for me a short while. I instantly got over it. And I knew that I would walk away with my talent. And that's really all I needed.

And I had a dream and a desire to keep going. And that's what I tried to do. KING: Does it feel like, with all that's happened to do with getting that role in that movie and winning the Golden Globes and the like, and a probable Oscar winner -- predicting. Does it feel like I told you so?

HUDSON: I don't think of it like that. I mean, I'm blessed and I'm grateful for that. And I'm just happy to be able to do what I love to do. So I don't look at it like that, no.

KING: We have an e-mail question from Deke in Birmingham, Alabama. "In the future will you work with an acting coach or act from instinct? Also, how's the Jackie Robinson Project coming?"

HUDSON: Oh, wow. They know about that, huh? Well, I don't know. I'm going for it, that's all I can say. I would love to be a part of that project. So hopefully it works out.

KING: Is that going to be a movie?

HUSDON: Yes, it will be.

KING: All right. You have been quoted as critical of "American Idol." Do you stand by that?

HUDSON: No. Actually, I was misquoted.

KING: So straighten it out.

HUDSON: No, no, no, no. I feel like "Idol" was the platform for me to be seen. I 'm grateful for the experience. I didn't say that "Idol" was abusive. That wasn't me. That was a misquote.

KING: Where do you think it came from?

HUDSON: I don't know. They just take little bits and pieces of things you say. I mean, I feel like -- what I said was, when people go on the show, it is three different stages before America actually sees you. So they feel, when they're up there before the judges, when they finally see Simon, Paula and Randy, and they are doing what they're told to do, and then they get to that portion and it is not good enough, all of a sudden. And I guess that's where they got the abuse part from.

KING: Hey, Clive, what about the party? I'll be there Saturday night. What happens this year? It is always wild.

CLIVE DAVIS, RCA RECORDS: Well, we have the most glittering of audiences coming on Saturday night to celebrate music, Miles Davis, Whitney Houston, for the evening.

But Mary J. Blige -- Vice President Gore is coming with Tipper.

HUDSON: Wow.

DAVIS: The range is extraordinary, from people really from television, the heads of every motion picture studio. And, of course, the highlight is this show.

And we're going to do our best to top the glittering evenings of the past. And we have got the best of talent, really, that's going to give their all on stage. And hopefully we can look to Anita Baker and Erica Badue and the Police and who have reunited...

KING: The Police?

DAVIS: The Police who have reunited. I'm talking the group.

KING: Yes, I know.

DAVIS: Yes.

KING: Jennifer going to perform?

DAVIS: Jennifer will perform.

HUDSON: Yes.

DAVIS: Yes.

KING: Jennifer, you think you're going to win the Academy Award? Be honest.

HUDSON: You know what? I don't know. I'm just glad to be a nominee. That's all I can say. I didn't expect that. So it makes me feel like a winner alone.

KING: Based on when's happening so far, no one would criticize you for expecting it.

HUDSON: Wow. Well, you can never be too sure.

KING: I predict it.

HUDSON: Well, thank you. Thank you.

KING: Thank you, Jennifer.

Jennifer Hudson.

HUDSON: Thank you.

KING: And Clive Davis.

(END VIDEOTAPE)

SANCHEZ: Great story. Tonight on "Larry King Live," the latest developments on the death of Anna Nicole Smith and the tug of war over her daughter.

"Larry King Live" at a special time 11:00 p.m. eastern, right here on CNN. Still much more ahead here on CNN. Up next, "Lou Dobbs This Week," should it be mandatory for young girls to be vaccinated against a sexually transmitted disease, an STD, as they're often called, that can lead to cancer? That's part of the discussion here with Lou right here on CNN.

But we leave you, well, why not, with a little more Jennifer Hudson.

(COMMERCIAL BREAK)

SANCHEZ: I'm Rick Sanchez, in the "CNN Newsroom." Welcome back. "Lou Dobbs This Week" is straight ahead.

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