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Former Gonzales Aide Testifies on Capitol Hill; Violent Storms; Standoff With Iran; Former U.N. Ambassador Weighs in on Capture British Marines

Aired March 29, 2007 - 09:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. You're in the CNN NEWSROOM.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Good morning. I'm Heidi Collins.

Watch events come in to the NEWSROOM live. Here's what's on the rundown for Thursday, March 29th.

Behind-the-scenes details. A one-time aide to the attorney general before Congress shortly. Kyle Sampson's take on the fired federal prosecutors.

HARRIS: Iran hinting it may put British sailors and marines on trial. This hour, we ask former U.N. ambassador John Bolton about this escalating crisis.

COLLINS: A pounding across the plains. Tornadoes slash states from Texas to the Dakotas, killing two people. We're watching for more twisters today in the NEWSROOM.

HARRIS: And at the top this hour from Nebraska to Texas, the first light of day is giving people a good look at a disaster scene. Dozens of tornadoes tore through the plains overnight. Amazing video of a twister in Oklahoma.

Beaver County, this is where a husband and wife were killed. They were seeking shelter in their home when it simply blew apart.

A twister about the size of two football fields slammed into Holly, Colorado. Eleven people were hurt. Every single building in this little town may have been damaged. As one person put it, homes were there and now they're gone.

More from Holly in just a moment.

COLLINS: For now, though, we want to get directly to Chad Myers, of course, with more on this situation.

(WEATHER REPORT)

COLLINS: The controversial firings of federal prosecutors -- today a witness for the defense. Next hour on Capitol Hill, we'll hear from Kyle Sampson. He was a top aide to Alberto Gonzales, the embattled attorney general who is now fighting for his own job.

Following the morning's developments, Justice Correspondent Kelli Arena and Congressional Correspondent Dana Bash.

Let's go ahead and begin with Kelli.

Kelli, I know that you have a copy of the opening statement that Kyle Sampson is expected to deliver in a little while. Tell us what's in it.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Well, basically, Sampson admits that he was, indeed, the point person for the U.S. attorney dismissals. But he says that he was not working alone, that he received input from a variety of officials.

He does say that he believes each prosecutor who was asked to resign was selected for legitimate reasons, and he makes the argument that it was OK to let them go because they didn't sufficiently support President Bush's priorities. He also insists that this wasn't some evil plan.

In a statement, he says, "This is a benign rather than sinister story, and I know that some may be indisposed to accept it, but it is the truth as I observed it and experienced it."

But, you know, Heidi, if past is prologue, that may not wash with senators this morning who have been dealing with several inconsistent statements from Justice and the White House on this story.

COLLINS: It will be interesting to see the questioning. That's for sure.

But if Sampson says he didn't do anything wrong, was he asked to resign? Or how did that all come about?

ARENA: Well, he says he wasn't asked to resign. He says he did it on his own because he felt like he let the attorney general down.

He says that this whole mess is due, in his words, to a combination of poor judgment, poor word choices, poor communication. He says that he does feel partly responsible and that's why he left his job.

COLLINS: OK. We will be watching, alongside you, Kelli Arena.

Thank you.

Let's go ahead and turn to our congressional correspondent now. Dana Bash is positioned for ultimate viewing of the testimony overlooking the committee hearing room.

Dana, what kind of reception can Kyle Sampson expect today?

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Certainly an intense one, no question about it, from Democrats and Republicans on the Senate Judiciary Committee, Heidi. And, you know, Democrats in particular, they have been suggesting strongly from the beginning of this controversy that they -- that they think that perhaps these eight prosecutors who were fired were -- some of them were fired because they were too tough on Republicans, others were fired because they were too soft on Democrats in corruption probes in their particular districts. But Kyle Sampson, we know from his prepared testimony, is expected to say, no, that's not it at all.

So, what Democrats and Republicans are going to want to know is, OK, so why were these prosecutors fired? Kyle Sampson, as Kelli just said, was really at the center of creating the plan for deciding which of the 93 U.S. attorneys across the country would be fired. And what lawmakers want to know is, OK, so, why were they fired?

The other key thing they are going to be pressing Kyle Sampson on directly and indirectly is about his boss, the attorney general. As you well know, there has been a lot of controversy over perceived inconsistencies in what he did and did not know during the time of the decision-making process. So, he could shed light on what the attorney general really did know.

Not just that, but also over at the White House. Karl Rove, other top White House officials, whether or not or how far they were involved in deciding who was going to get fired and who wasn't.

COLLINS: Well, and clearly, that is at the heart of the matter in all of this, Dana. I'm wondering, though, if Democrats really expect Sampson to provide some sort of evidence that could lead to a crime.

BASH: Well, you know, at this point, Heidi, it's very interesting. The two Democrats who are heading up the investigation, the Judiciary chairman, Pat Leahy, and Senator Charles Schumer of New York, they had a meeting with reporters yesterday, and they were very much trying to play down the expectations that there was going to be some kind of smoking gun in this -- in this hearing today.

Now, part of that is just basic politics 101. You play down expectations in the hopes that something does come about. But there's something else, and that is, Democrats have been under fire a bit for perhaps drawing conclusions before they even know the facts.

So, they have been trying to make the case that what they were going to do here is try to hopefully get a roadmap from the man who really was at the center of these firings as to what the facts really are. Again, why these prosecutors were fired, and more specifically, perhaps in terms of why Democrats and even many Republicans are upset, why Congress in their initial inquiries didn't get accurate information.

That's something Kyle Sampson admits that happened. Democrats and Republicans are going to want to know more about why.

COLLINS: Yes, that's for sure. Everyone's going to be watching this very closely today.

Dana, thanks so much for that. We just want to remind our viewers, of course, that we will be carrying that coverage for you live here on CNN NEWSROOM, expected to begin at the top of the hour, 10:00, Kyle Sampson's testimony before the Senate Judiciary Committee.

Meanwhile, out of a job and into the spotlight. One of the fired federal prosecutors speaks out. We will talk with David Iglesias, get his perspective on all of this coming up in the NEWSROOM.

HARRIS: And more now on our top story this morning, power lines, tree limbs and mounds of debris lining the streets of Holly, Colorado, this morning.

Rhonda Scholting is on the ground for us.

And good morning to you, Rhonda.

Has everyone in -- boy, look at that. Look at the root structure on that tree.

Rhonda, has everyone in that town been accounted for?

RHONDA SCHOLTING, CNN CORRESPONDENT: Actually, they have, Tony. And what you're looking at just shows you the ferocity of the storm. Look what it did to that tree, just basically toppled it over on to the roof of this house over here. And inside last night at 8:00, when this storm rolled through, there was a couple in there in their living room watching television, if you can believe that.

They did not hear the sirens go off because the sirens didn't go off last night. There was absolutely no warning to turn them on.

That couple, though, was not injured, thankfully, although, in all, there were eight people injured from this storm. Two of them were small children who were actually blown out of their homes into some very tall trees and then brought down by rescue workers. The one young girl, we understand, is in serious condition this morning, but we understand she will be OK.

Now, throughout this small town of Holly, there are 30 homes that are either totally destroyed or very badly damaged. And dozens of trees down, dozens of power lines. There were gas leaks here last night that crews have taken care of.

There is one part of town, the north part of town, right now that we're not allowed to go in to because we understand it is simply still too dangerous, because that is where the most damage is and where there is the most potential that if anyone was walking around, not knowing what they were doing, they might step on something, they might possibly pull some more debris down upon themselves. So, we're actually being sort of corralled in this area right here, and there are no homeowners being allowed in that north part of town right now either.

HARRIS: Hey, Rhonda, what is next for the people so impacted by this storm? Where do they go, what do they do this morning to start to put pieces of their life back together? SCHOLTING: Well, I'd have to think one of the first calls you might make could be to your insurance agent to sort of bring him in here to try to assess some of the damage, because that's really the only way a lot of these people are going to, you know, get some of the things started...

HARRIS: Sure.

SCHOLTING: ... what they have to do to the roofs, put the plastic over to make sure that no other weather gets in.

A lot of the people that were displaced last night ended up with friends and family. Plenty of people were around to take them in, in the surrounding communities. And, in fact, in terms of the rescue workers that came in last night, they weren't even asked to come in. We understand from the sheriff's department, they just kind of showed up unannounced and offered all the help that they could.

HARRIS: It happens that way often.

Rhonda Scholting for us in Holly, Colorado.

Rhonda, thank you. Appreciate it.

COLLINS: Defiance from Iran today in the standoff over British detainees. Iran is threatening to delay the release of the only woman among the 15 sailors and marines it's holding. The reason? Britain's appeal to the U.N. and its allies for support.

CNN's Paula Newton explains from London.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT: Well, hope seems to be fading that leading seaman Faye Turney will be released or that British consular officials will be allowed to visit those 15 sailors and marines later today. The reason is that, although British prime minister Tony Blair has said he doesn't want a confrontation with the Iranians, the Iranians say a confrontation is what he'll get, especially if he continues to try and pressure the U.N. or his other allies to sign up to statements of protest against Iran. A key top Iranian negotiator has now said that the release of Ms. Turney will be delayed and that British consular officials will not be allowed to visit those sailors if Britain continues with these kinds of protests.

In the meantime, the whole point of controversy about whether or not the British sailors and marines were in Iranian waters continues. Iran says that the bottom line is they want to see the British government apologize for having strayed into Iranian waters before they are willing to discuss the release of those 15 British sailors and marines.

Paula Newton, CNN, London.

(END VIDEOTAPE) COLLINS: A deadly fire in a Houston office building. Daring rescues, and now a search for the cause.

HARRIS: Also, he's Sampson. Is Congress the Goliath or the watchdog? Critical testimony in the firing of federal prosecutors here and live in the NEWSROOM.

COLLINS: The standoff over British troops. Concerns about nuclear weapons -- is it time for a regime change in Iran? Former U.N. ambassador John Bolton weighs in. He'll join us in the NEWSROOM.

KYRA PHILLIPS, CNN CORRESPONDENT: Once unheard of here in Iraq, drug busts are now the norm. I'll take you on patrol.

I'm Kyra Phillips, live in Baghdad. We'll have more from the NEWSROOM right after this break.

(COMMERCIAL BREAK)

HARRIS: Bombs and bullets leave 11 dead and dozens wounded in Iraq. The scattered attacks in Mahmoudiya and across Baghdad include this roadside bomb.

Look at these pictures. It blasted a busy street lined with markets.

Also today, U.S. troops report killing four insurgents and capturing 15 during raids. This comes on the day the new U.S. ambassador to Iraq is sworn in. Ryan Crocker says security is, without question, the central issue in Iraq.

COLLINS: War in Iraq. A new enemy emerges -- drug money helping fuel the insurgency.

CNN's Kyra Phillips is tracking that angle. She is live now from Baghdad.

Kyra, how seriously do investigators actually take this?

PHILLIPS: Well, Heidi, here in Iraq, if you're the head of a drug ring and you're caught, without question you die for your crime.

(BEGIN VIDEOTAPE)

PHILLIPS (voice over): We're on patrol with the Iraqi border police. They're looking for drug smugglers.

(on camera): Does the drug money support terrorism?

(voice over): "Yes," the investigator tells me, "it's very clear."

Clear, because once unheard of in Iraq, high-profile drug busts are now the norm, and this is where many of them end up.

(on camera): Tell me what type of criminals you deal with in this jail.

(voice over): "Drug smugglers, terrorists, kidnappers," he tells me, "and murderers, the worst."

Welcome to Baghdad's major crimes unit, where we have to protect every investigator's identity.

(on camera): I'm told your investigators are murdered for what they do.

(voice over): "Our country should be secure," he says. "We need to make a sacrifice for that. This is the principle."

If you're convicted and sent to this prison, you are executed or locked up for life.

Shaban Ali (ph) was arrested for smuggling hasheesh. He says he's innocent. But he had no problem describing how hasheesh, heroin, and marijuana are the popular drugs here. Most of it, investigators say, smuggled from Iran and Afghanistan, funneling millions of dollars and plenty of drugs to the terrorists.

(on camera): Why would -- why would you want to kidnap and kill anybody? Why?

(voice over): Mohammed Kadam (ph) says he is not a terrorist, but he admits he did kidnap and murder a man. He says he did it for the money.

Back at the border, back to yet another post-war reality, drugs. Just one more enemy in this war in Iraq.

(END VIDEOTAPE)

PHILLIPS: And Heidi, the lead investigator also said to me that these drugs are being used as a tool of motivation, sort of like what we've seen with the children soldiers in Sudan. They're given these drugs, and then they commit these acts of terror, and as the investigator says, they're completely unaware of what they're doing.

They're high.

COLLINS: That's amazing. Isn't execution a harsh punishment for drug smugglers?

PHILLIPS: That was one of the questions that I asked, and the general of the high crimes unit said, look, drugs have a lasting effect. Once you become an addict or once you start bringing that money in, it not only ruins you as an individual, but it completely ruins your society.

So, they're already seeing that effect, and the number of drug addicts has even increased. This was a problem that was -- or an issue that was not necessarily a big problem in Iraq, and now it's ongoing. And even these addiction centers have more people and are growing across the country because of the drugs being smuggled in. COLLINS: Well, we must be talking about obviously a significant problem. I mean, how much money do the smugglers make? PHILLIPS: Well, for example, the bust that you saw there, that the patrol did, they seized 1,500 pounds of hasheesh, $10 million street value. So, it brings in a lot of money for the insurgency and the terrorists to be able to operate, buy weapons.

And as these drugs are coming over, Heidi, weapons come with them, other chemicals come with them. So the type of things that are being smuggled with the drugs, that's increasing as well.

COLLINS: Yes. And therein lies the real problem, I would imagine, that they're looking at.

All right. CNN's Kyra Phillips live from Baghdad this morning.

Kyra, thanks.

HARRIS: The Green Zone in Baghdad. A highly secure area becoming less and less secure.

Stay in the NEWSROOM and we'll show you just how.

STEPHANIE ELAM, CNN CORRESPONDENT: I'm Stephanie Elam in New York.

And the U.S. has an embargo on oil in Iran. So why do tensions over there affect the price of oil here? I'll tell you coming up in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: The escalating tensions with Iran makes oil markets very jittery. Why what happens with Iran really does matter to the price of oil.

Stephanie Elam is "Minding Your Business" this morning.

Good morning to you, Stephanie. So explain this to us.

ELAM: Good morning, Heidi.

Yes, it's a big one. I can see why people would be confused. You're thinking, hey, we don't even get our oil from Iran, which is actually the fourth largest oil producer in the world, so why do we actually care? Well, it turns out we actually get 20 percent of our oil from the Middle East, and the rest comes from other sources, which is interesting to note.

But remember earlier this week the U.S. warship supposedly had a run-in with Iran? Well, it turned out to be false, but it was enough to spook the oil markets and give them an eight percent spike during the day.

Now, if you look at overall the Persian Gulf, its tensions seem to be strong, seem to be high, and oil trades globally, and that's why we care what's happening in Iran, because oil will always be under strong demand. So, the oil traders know that, and because of that, they factor it in and they say, hey, Iran's just going to sell that oil someplace else, and in this case, it mainly goes to Japan, so it still affects the markets overall.

COLLINS: Yes, that's interesting. I don't think very many people knew we still get about 20 percent from them.

ELAM: Right.

COLLINS: I know you're following another story, too. Circuit City, more layoffs.

ELAM: This is an interesting story here, because Circuit City has come out and said that they're going to lay off 3,400 store employees and then replace them with lower-paid employees. It just sounds like a crazy story, but they're saying that its workers currently earn well above the market base salary range for their role, and they want to just bring it back in line with the market at this point.

They're also saying that they're going to cut 130 corporate jobs, all in an effort to cut costs here. They also said they're going to outsource their IT operations to IBM, and that will cut their expenses by about 16 percent. But it just shows us more fears that the markets are starting to tighten, even businesses are cutting back on where they're spending.

COLLINS: Yes. And there's not much an employee can do. I mean, that's the way the company decided to run things.

ELAM: I guess you can come back and take the lower wage. It's like you have no option, really.

COLLINS: Yes.

ELAM: Yes.

COLLINS: Or look for another job, obviously.

ELAM: Yes.

COLLINS: All right. Stephanie Elam, thanks so much, "Minding Your Business" this morning.

ELAM: Thanks.

HARRIS: The standoff over British troops, concerns about nuclear weapons. Is it time for regime change in Iran? Former U.N. ambassador John Bolton weighs in, in the NEWSROOM.

He's Sampson. Is Congress the Goliath or the watchdog? Critical testimony in the firing of federal prosecutors. Hear it live in the NEWSROOM.

Stay alert on the plains today. You might see one of these monsters coming at you. Man.

Tornado touchdown in the NEWSROOM.

And a shocking way to protect a loved one. Parents say they use a cattle prod to keep their autistic son from hurting himself.

Stay with us. You're in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And hello, everyone. Welcome back to the CNN NEWSROOM.

I'm Tony Harris.

COLLINS: And I'm Heidi Collins. Good morning, everybody.

Among our top stories this hour, Iran backtracks on a pledge to release a British woman, one of 15 British marines and sailors detained last Friday. British Prime Minister Tony Blair says he doesn't want a confrontation, but Britain is appealing to the U.N. and its allies for support.

An Iranian negotiator told state TV today that British leaders have "miscalculated the issue" and he hinted at possibly putting the British troops on trial. Iran accuses them of trespassing in its territorial waters. Britain maintains they were in Iraqi waters.

HARRIS: And for more now on the standoff with Iran, let's talk with former U.N. ambassador John Bolton. He's now a senior fellow at the American Enterprise Institute.

Ambassador, great to see you. Thanks for your time this morning.

JOHN BOLTON, FMR. U.S. AMB. TO U.N.: Glad to be here.

HARRIS: Any doubt in your mind that Iran is at fault when we talk about the latest crisis, the capturing of the British sailors and marines?

BOLTON: Well, you can never be entirely sure, but this looks to me to be a deliberate provocation by Iran designed to test how strong the Brits and the Europeans, more generally, will react to it.

And I must say so far, the results are not encouraging. I don't think the United Kingdom has shown the decisiveness that they need to show here. And I'm sure they're worried about the impact that this incident will have on their efforts to get Iran to give up its pursuit of nuclear weapons, but I think they're miscalculating.

I think what Iran sees so far is passivity and acquiescence, and if that perception turns to a perception of weakness, ironically, the Brits will hurt whatever slim chance they have of getting a negotiated deal on the nuclear weapons.

HARRIS: OK. Let's listen to Tony Blair. He is going to issue a warning in the sound bite we're going to play for you. And then let's talk about what the new, stronger language might be. But let's listen first. (BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: We had hoped to see their immediate release. This has not happened. It is now time to ratchet up the diplomatic and international pressure in order to make sure that the Iranian government understands their total isolation on this issue.

(END VIDEO CLIP)

HARRIS: So ambassador, what would you recommend as a tougher stand from the U.K. toward Iran?

BOLTON: Well, I think the United Kingdom should be talking with us, talking with the rest of the European Union about making it clear that they want those sailors and marines released right now, without any further conversation, or Iran will suffer real pain, real economic sanctions.

Instead, what I understand the Brits are doing is talking about something like a three-sentence press statement by the Security Council. I'm sure that will get Iran's attention in a big way, reacting just the same way Iran has rejected sanctions that the council has passed on its nuclear program.

I think Britain has got to be tougher here. As I say, ironically, an effort to go be -- to go softly, softly as the British foreign office likes to say, in connection with this incident will simply embolden Iran on the nuclear program.

HARRIS: Mr. Ambassador, Iran -- Iran doesn't care about sanctions. Come on.

BOLTON: Well, I think that's the point. They certainly don't care about the sanctions that the Security Council has adopted.

HARRIS: Yes.

BOLTON: That's why even if a so-called press statement is issued by the Security Council, Iran will ignore that, too.

You've got to get beyond the idea that what happens in the council is really going to affect Iran. If Britain wants these people back safe and unharmed in anything like a hasty manner, they need to act with will and resolve and do it very clearly now.

HARRIS: Is the military option on the table?

BOLTON: Well, I don't -- I don't think this is the time to talk about that, necessarily. I think the military option has to be on the table in the far -- because of the far greater threat of Iran's pursuit of nuclear weapons.

But, you know, it's been seven days now since these sailors and marines were captured by the Iranians. I think there's simply no doubt, given that length of time, that Iran did this deliberately in response to the Security Council actions on the nuclear program.

And I think they're probing the British and, more generally, the Europeans. And I think what they're seeing so far, as I say, is this kind of passivity.

HARRIS: Yes.

BOLTON: They're not seeing a tough response.

HARRIS: Let's talk about the military option. Let's pick up on that point you made just a moment ago. You have said that Iran will never give up its nuclear ambitions and regime change is the only way to get Tehran to give up its nuclear weapons and those ambitions. How do you -- what are you suggesting here?

BOLTON: Well, I'm not suggesting the use of military force to accomplish the regime change, at least not yet. But I do think there's enormous dissatisfaction inside Iran.

Iran's government has mismanaged their oil revenues. The economic conditions are not nearly what they could be. There's a lot of ethnic dissatisfaction. The population of Iran is educated; they're sophisticated. They know there's a different kind of life they could lead without this theocratic regime in power.

So I really think over the long term the evidence is clear that the best way to get Iran to give up its pursuit of nuclear weapons is to change the regime in Tehran. That won't be easy, and it won't happen soon. But that's the course we should be pursuing.

HARRIS: Changing topics for just a moment now, Kyle Sampson, the former chief of staff to the attorney general, Alberto Gonzales, is going to be testifying in just a couple of minutes here about the firings of federal prosecutors. Is this -- is this a big deal or is it much ado about nothing?

BOLTON: Well, frankly, I think the whole thing is much ado about nothing. The Congress ought to know that U.S. attorneys serve at the pleasure of the president.

I've been honored to serve in many positions in government at the pleasure of the president, and what that means is you have no job security. If you don't like that as a kind of career path, then you shouldn't become a U.S. attorney.

Now, this may have been mishandled in the way it was presented or how these individuals were dealt with. There are good ways and bad ways to change senior officials in the government.

But let's be clear. This is the president's authority. This is core executive branch power here. And the notion that somehow the president should be limited in what his attorney general does is fundamentally subversive of the separation of powers.

HARRIS: How about applying the law impartially? The politics stop at the door of the Justice Department? BOLTON: Well, of course the law should be applied impartially, but there are different priorities that you can have. Different administrations will give different emphasis to different areas of the law.

And it is fundamentally the job of the attorney general to carry out the broad policies articulated by the president. That doesn't mean he's politicizing the Justice Department. It means the Justice Department is part of the executive branch of government.

HARRIS: Let me ask you one last sort of open-ended question here. What are your thoughts these days? You've been away from the U.N. for while now. What are your thoughts on Iraq?

BOLTON: Well, I think the president's surge remains the only coherent strategy available to the United States. I think we have met and are meeting our obligation to the Iraqi people to give them a chance to put their own government together.

That obligation is not infinite in duration, and I think that it needs to be made clear and it is being made clear to the various sectarian factions in Iraq that if they want a peaceful, civil society to emerge, this is the time to get serious about it.

HARRIS: Former U.N. ambassador, John Bolton, with us this morning. Mr. Ambassador, thanks for your time.

BOLTON: Glad to be here.

COLLINS: And on the heels of that discussion with Ambassador John Bolton, we want to make sure we get this news out to you, the very latest on the Iranian British sailor situation. You know there are 15 that are being detained right now.

Want to let you know that, according to Iran's supreme national counselor now, we have just learned and CNN has been able to confirm, that Britain's rough language, again according to Iran Supreme National Council, and sensational actions, will cause a suspension in the release of its detained woman sailor. That's Faye Turney, who yesterday we had heard from Iran's foreign minister that she would likely be released soon as sort of a first step in resolving this situation.

But now a different individual, the Supreme National Council's Secretary, Ali Larijani, said this tough stance adopted by Britain would cause the release to be delayed.

And to remind you, British Foreign Minister Margaret Beckett -- we played some of that sound for you here yesterday -- said that Britain would be freezing all bilateral diplomatic business with Iran until the Brits were freed.

They have also said today that they are not interested in escalating this situation. They want things to be resolved. "We do not," quote, "want a confrontation over this. We want this resolved as quickly as possible." Again quoting two of the British officials in all this. And we will watch this situation. It appears to be escalating, at least on the side of the Iranians. And we will make sure to bring all the information as it comes in to us.

This also coming into us now, coming out of Tennessee. We have here quite a tanker fire, as you can see. Look at the flames and huge black smoke coming up. A traffic accident in Memphis.

Not quite sure what happened here, obviously, but it appears that that tanker has certainly exploded. Can't quite tell what sort of area this is, but it doesn't look to be residential.

Of course, taking care of that situation by way of fire rescue and so forth is very difficult, because you can't get too close to a tanker.

So, we will continue to watch this one for you. Again, coming to us out of Memphis there. Some pretty spectacular flames.

HARRIS: Man.

What did the attorney general know and when did he know it? Those questions likely to be posed to a former top aide to Alberto Gonzales. Kyle Sampson is expected to defend his former boss in the firings of eight federal prosecutors. He will testify next hour before the Senate Judiciary Committee, and he's likely to invite more criticism.

Sampson is expected to say the U.S. attorneys did not sufficiently support the president's priorities, but he says the firings had nothing to do with ongoing corruption probes.

COLLINS: March is going out like a lion in the plains. Look at that. More bad weather could be on the way after a night of violent storms and tornadoes. Two people in Oklahoma were killed.

Reporter Greg Nieto of affiliate KWGN is in the hard-hit town of Holly, Colorado.

(BEGIN VIDEOTAPE)

GREG NIETO, KWGN CORRESPONDENT: Some folks here, they were actually stuck in this tree. Believe it or not, that actually used to be a trailer. A family of three was living inside that trailer when the tornado touched down. It swept the trailer up and onto that tree. The family of three was actually stuck in the tree, had to be rescued after that tornado did touch down.

One of the children, I was told, was taken to a local hospital. We talked to a family that had passed by and is obviously shaken by what happened to that family.

Again, no fatalities at that point, but at least eight confirmed folks were taken to a local hospital. And obviously the cleanup and a lot of the inspection is only beginning. We're live this morning in the town of Holly in southeastern Colorado.

Greg Nieto, News 2.

(END VIDEOTAPE)

COLLIN: We want to update you on the situation, and we hate having to do this. But the mother and daughter Greg that mentioned who were blown into the tree, CNN has just learned the mother has died.

HARRIS: Oh, boy. That's horrible.

Heidi, what do you say we get a check of the weather now? Chad Myers is in the weather center.

And Chad, what can you decipher from those pictures of that damage that you -- F-1, F-2? Is it too early?

CHAD MYERS, CNN METEOROLOGIST: Bigger than that.

HARRIS: Bigger than that?

MYERS: Yes. Well, when you lose major limbs of a big tree, you're talking probably F-3 damage. And some of the reports said major multi-vortex, which means different suction spots moving around each other in a very large tornado.

And the warning was issued after the tornado was already sighted on the ground. It wasn't close enough, I guess, to a Doppler site to pick it up, to know that it was going to be a tornado. So there wasn't all this -- there wasn't 15 or to 20 minutes worth of advance notice on this storm.

Someone saw the tornado one mile south of town, called it in. That got to the Pueblo, Colorado, weather service office, and three minutes later a warning was typed out and issued, which is pretty fast.

But by that time, the tornado was already through town, so the sirens didn't even have a chance to blow and warn people there.

And I'm not sure if that family was still in that mobile home, whether it would have made any difference anyway whether they knew or not, because that was completely gone.

(WEATHER REPORT)

HARRIS: Thank you.

COLLINS: That's for sure. I can't believe the strength of some of these storms. It's really unbelievable. All right, Chad, we know you're watching it. Thank you.

MYERS: You're welcome. HARRIS: And Heidi, let's take everyone to the New York Stock Exchange, New York City, this morning. The bell sounded just a few minutes ago. We're just inside the first hour of the trading day.

Let's take a look at the Dow, off to a good start: plus 65, plus 66. The NASDAQ up 11 points in early trading. What is going to move the markets today? We will check all of the business headlines with Susan Lisovicz here in the NEWSROOM.

COLLINS: An annual ritual. The president and the press roasting each other over dinner. And for dessert, one liners.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The press is a lot tougher the second term. It's reached the point I sometimes call on Helen Thomas just to hear a friendly voice.

(END VIDEO CLIP)

COLLINS: No pass to the press in the NEWSROOM.

SUSAN ROESGEN, CNN CORRESPONDENT: I'm Susan Roesgen in Lake Charles, Louisiana. How would you like to have one of these in your front yard? How would you like to have 20 barrels of oil of our own a day? We'll have the story coming up in the CNN NEWSROOM.

(COMMERCIAL BREAK)

ANNOUNCER: Breaking news, revealing developments. See for yourself in the CNN NEWSROOM.

COLLINS: Quickly want to take you back to Memphis, Tennessee, where we've been watching this tanker truck explosion. Now we see several rescue crews on the scene there. Likely going to have to watch this thing burn off.

According to some of our affiliates there on the ground, apparently, this accident happened between the fuel tanker truck and a Toyota pickup. Not sure exactly, of course, what happened, but the drivers of both vehicles apparently did escape without injury. A passenger in the pickup truck was able to get out before that tanker truck exploded. Thank goodness.

But again, according to our officials on the ground, or I mean our affiliates on the ground -- pardon me -- this is what happened and what we know at this time.

And man, look at all of those flashing lights. Really watching this situation very carefully. Of course, so that that fire does not extend into the grass there and some houses that may be nearby. Difficult to get a good picture of that. But we'll watch it for you out of Memphis, Tennessee, this morning.

Meanwhile, he's the oil man his own family made fun of. Now this driller may get the last laugh and all the way to the bank, too. CNN's Susan Roesgen is joining us now from Lake Charles, Louisiana.

Susan, how does this guy strike it rich, exactly?

ROESGEN: Well, this guy drills for oil under his house, Heidi. We first featured him last September. Here now is the whale head. The oil and natural gas flow up through the whale head, down through those pipes, and it's all less than 100 yards from the guy's front door.

(BEGIN VIDEOTAPE)

ROESGEN (voice-over): Only an oil man would put an oil rig in his own front yard.

STEVE JORDAN, OILMAN: The drill mass is about 65 feet high.

ROESGEN: And that's what Steve Jordan did last fall. Today, the rig is gone, replaced by what they call a Christmas tree, the metal tubing that means the well works.

JORDAN: There's a period of time where every well I drilled for three years was a dry hole, and my kids started calling me Dry-Hole Steve, so that kind of hurt.

ROESGEN: Dry-Hole Steve is dry no more. In fact, what he's tapped into is such a high grade of oil that it comes out of the ground almost as clear as a nice glass of champagne.

To get to it, Jordan had to drill under his house, under the living room and kitchen, even under the pool and a river behind the back yard. Now the pipes are pulling out 20 barrels of oil a day and even more natural gas.

Altogether, Steve says it's enough to triple his million-dollar investment. Take that, OPEC.

JORDAN: And I don't like those guys. Those guys don't like us. So, we're going to pay them back.

(END VIDEOTAPE)

ROESGEN: You know, the price of oil shot up to over $60 a barrel this week, Heidi, but Steve Jordan is betting that the price is going to be more than $100 a barrel within the next three years, which would mean that our price at the gas pump would be close to $4 a gallon.

COLLINS: I am so incredibly jealous. Now, listen, I know this guy has been working on this project for a very long time. It's not like he just thought, "I'm going to drill an oil well today."

But how much does he think he's really tapped into? How long will this keep flowing?

ROESGEN: Well, you know, that's the temptation, Heidi, because with the price this high the temptation is to go ahead and pull the oil out as quickly as possible and take advantage of that high price.

But apparently, what he says is the faster you pull the oil, the more likely you are to get some contaminants in there, some water, and you would actually diminish your reserve.

So, he says he's going to try to take it slow and steady and keep this oil flowing for about the next three to five years, if his wife will let him keep it in the front yard.

COLLINS: Oh, I think she will. Something tells me I think that she will be fine with that. Susan Roesgen.

ROESGEN: Pay some credit card bills.

COLLINS: Yes, no question. Susan, thank you.

HARRIS: Out of a job and into the spotlight, one of the fired federal prosecutors speaks out. We will get the thoughts of David Iglesias in the NEWSROOM.

And a deadly fire in a Houston office building, daring rescues and now a search for the cause. Coming up in the NEWSROOM.

(COMMERCIAL BREAK)

ANNOUNCER: Breaking news, revealing developments. See for yourself in the CNN NEWSROOM.

COLLINS: Want to get this information to you as quickly as possible. And a live shot, too, of Capitol Hill there, of what's going on as we are actually expecting something to go on a little later out of those meetings.

And that is a possible vote and passage of the war funding bill before noon today. We are learning from our congressional correspondent, Dana Bash, that -- she also stresses that Senate time, which means it might take a little longer than that.

But just to remind you, they were expected today to pass a $122 billion bill that would require President Bush to start bringing home an unspecified number of troops within four months. That's a nonbinding goal of ceasing combat operations as of late March, March 31 of 2008.

Of course, both sides, House and Senate, have to settle their differences and approve a final bill. Democrats say, though, that their recent votes guarantee the president would be handed a measure imposing some sort of timetable on Iraq.

And I'm sure you recall the president saying several times he will veto any measure that comes to his desk.

HARRIS: Investigating a deadly fire in Texas this morning. Three people were killed, several were hurt after a blaze spread through a Houston office building yesterday. Authorities believe the fire started in a fifth-floor medical supply firm. Flames could be seen coming out of the building's top floors. Look at this. Heavy smoke blanketed a nearby freeway during the evening rush hour. Fire crews used ladders to rescue people trapped on the higher floors of the six-story building. Three firefighters were among the injured. No word yet on what caused the blaze.

The fire in an ocean front high-rise and nowhere to run. It happened in Long Beach, California. That is south of Los Angeles. Authorities say a man jumped to his death from his 18th floor balcony yesterday. A witness says the man had been calling for help.

Fire officials stay the blaze was contained mostly within the victim's apartment. No one else was hurt. The fire and the death are under investigation.

COLLINS: As we age, our bodies change. But some changes you can't see, like bone structure. In today's installment of "30, 40, 50", a look at how to keep bones and muscles healthy. Here's medical correspondent Elizabeth Cohen.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN CORRESPONDENT (voice-over): It's 5 in the morning, and Bill Cox and Tara Murphy are already exercising. They're avid rowers and extremely passionate about exercise. But as they've aged, these athletes have varied their workout routines to avoid major injuries.

BILL COX, ATHLETE: Muscle pulls, running was particularly one that you have to work with on calves. And you have to be careful with your Achilles tendon and other things that you at times would get sore.

COHEN: When it comes to exercise and aging, there's a catch-22. Exercise is crucial to keeping your bones and muscles young. However, too much impact can hurt you. So, as you get older, it's a matter of finding that happy medium.

According to the American Academy of Orthopedic Surgeons, as we age our bones are constantly changing. In our 30s, bones begin to lose minerals like calcium, making them more fragile. As we get into our 40s, we begin to lose actual bone tissue.

But exercise can help regenerate bone tissue and minerals, slowing the onset of osteoporosis and arthritis.

DR. DAVID JOHNSON, WASHINGTON HOSPITAL CENTER: It's important in those that have arthritis, and those who are trying to prevent arthritis, to cross train, to get involved in a number of other sports so that if your knees are starting to hurt or you sprained your ankle, then you can cross train.

COHEN: Also in our 30s and 40s, our muscles begin to shrink and the number of muscle fibers decreases.

JOHNSON: So, it's important even more so in the 30s and 40s and 50s and beyond to do stretching before you exercise and stretching after your exercise to prevent injuries. COHEN: Tara Murphy, who's 36, says it helps.

TARA MURPHY, ATHLETE: Because I'm more stiff. Touching my toes 20 years ago was much easier than it is now.

COHEN: Doctors say it's never too late to start exercising. Studies have shown that even people 50 and over who have never been active can improve their bone and muscles by taking on moderate exercise, like walking and light weight lifting.

And go easy on the alcohol and coffee. Doctors say both can interfere with the absorption of calcium in our bones.

Elizabeth Cohen, CNN, Atlanta.

(END VIDEOTAPE)

HARRIS: He's Sampson. Is Congress the Goliath or the watchdog? Critical testimony in the firing of federal prosecutors. Hear it live in the NEWSROOM.

HARRIS: Taking a stand in China. Lofty and lonely. The owner of a small hotel battling developers, ahead in the NEWSROOM.

(COMMERCIAL BREAK)

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