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FDA Warnings on Food Imports From China; Texas Flood Misery; Tahoe Wildfire; Immigration Bill Blocked

Aired June 28, 2007 - 14:00   ET

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

DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon, live at the world headquarters in Atlanta.
KYRA PHILLIPS, CNN ANCHOR: And I'm Kyra Phillips.

End of the road for immigration reform. Only 12 Republican senators support President Bush's top domestic priority in his waning months in office.

LEMON: And getting an upper hand in the Tahoe wildfires, now 55 percent contained, but getting that last 45 percent will be tough.

We're watching which way the wind blows in the CNN NEWSROOM.

Well, as a fish eater you'll want to listen to this. We're moments away from learning more from the new FDA warnings on food imports from China.

Medical Correspondent Elizabeth Cohen joins us with the details.

We're just learning that might happen in just a few minutes.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Right.

In just a few minutes, the FDA is going to start their press conference. What we have been told they're going to say is that they have stopped some fish at the border that was coming in from China. You wouldn't believe what was in this fish.

Now, when I come back later in the show, we're going to talk about whether the fish you had for dinner last night maybe had something in it.

PHILLIPS: A little tease, a little something?

COHEN: Medicines that you don't want to be eating. The fish were given some medicines that you don't want in your body.

PHILLIPS: Wow. Do we get a lot of fish from China? I don't think...

COHEN: We do. We do.

PHILLIPS: Yes.

COHEN: Yes. We do get quite a bit of fish from China, and it's not always labeled. You don't always know.

PHILLIPS: Interesting.

COHEN: So when we come back, we're going to talk about what you can do.

PHILLIPS: OK.

Elizabeth, thanks.

COHEN: Thanks.

LEMON: We have some new developments to tell you about in the search for a missing 4-year-old British girl. Spanish police say they've arrested an Italian man in connection with the disappearance of Madeleine McCann.

A local journalist interviewed by Britain's Sky News says a Spanish police source told her a Portuguese woman has been arrested as well. But authorities were unable to confirm that report. McCann vanished from her bed while on vacation with her parents in Portugal nearly two months ago.

PHILLIPS: After too many days of nonstop rain in central Texas, they're watching the skies again. Flash flood warnings are still in effect. Two people are missing in Williamson County, where floodwaters apparently swept their car right off the road. The news is a little better in Marble Falls, where floodwaters are dropping.

CNN's Reynolds Wolf is there.

(BEGIN VIDEOTAPE)

REYNOLDS WOLF, CNN METEOROLOGIST: We're right on the banks of the Colorado River in Marble Falls, Texas, and take a look just here at the boat ramp. You can see just how high the floodwaters were at one point.

You see just the debris scattered all the way to the top from yesterday's flood. Then yesterday afternoon it dropped down considerably. Even more during the overnight hours, and now you can see its present location, pretty much normal at this point.

The reason why the floodwaters have dropped so much in the river is all due to the Lower Colorado River Authority. They operate the hydroelectric dams on this part of the river, and they've kept a dam which is farther down river, Mansfield Dam, open. Four of the floodgates are open, and that has helped the water lower quite a bit.

It really was very high. You saw it just by the boat ramp itself. But also look at that table over there. Yesterday at peak flooding the water was well over the table, nearly up to the roof at some point. So that is really good news that it has dropped.

What we do have to be concerned about is that in the town of Marble Falls people are without water at this time. So that's a very desperate situation. Another issue, not the weather that happened yesterday, but what may occur tonight and through the rest of the afternoon.

We've got some scattered showers that are forming out to the west. Much of that is moving in our direction, and the forecast calls for anywhere from, say, three, maybe even as high as four, inches of rainfall.

Now, if that all falls in one big pocket, that could cause some more flooding issues. However, if that rainfall is spread out over many hours, well, the town and, well, the river should be able to handle it.

Reporting from Marble Falls, I'm Reynolds Wolf, CNN.

(END VIDEOTAPE)

LEMON: Well, they made incredible progress overnight. Firefighters managed to get that stubborn wildfire south of Lake Tahoe 55 percent contained. But the next few hours depend, of course, on the weather.

CNN's Kara Finnstrom is live in Myers, California, for us.

What's the latest, Kara?

KARA FINNSTROM, CNN CORRESPONDENT: Well, what's been key here is firefighters have gotten a 24-hour reprieve from the powerful winds that they were expecting yesterday, and they say that that has given them a lot of time to try to get an upper hand on this blaze. But they say they're still not completely out of the woods here. They're concerned about those winds which are still forecast, possibly to come later this afternoon.

And with us right now is Scott Swanson. He is with the fire department, a fire information officer out here.

You've been out here gauging the winds, and you say there's a number of firefighters doing this today.

SCOTT SWANSON, FIRE INFORMATION OFFICER: That's right, Kara. What our firefighters are doing right now on the line as they're mopping up and securing the edge is they're using gauges like this (INAUDIBLE) here, which is a wind gauge, and they're measuring the winds. We are anticipating winds in upwards of 30 miles an hour today. And so we want to constantly monitor them throughout the day to make certain that we have an idea for what's coming later on.

FINNSTROM: And, you know, a lot of people at home -- it's beautiful out here today. The fire really does appear to have subsided. There's not a big active burn right now. You guys are tackling the hot spots. They may think this is over.

Tell us how big of a concern these winds are and exactly why they are a concern. SWANSON: Winds are always a major concern on a wildfire. While you might not see a lot of active flames right now, when the winds pick up, they can pick up those embers and they can throw those embers across our control lines, then create spots, and we'll see what will be a new fire. And that's what we're trying to avoid today.

FINNSTROM: Well, we appreciate you joining us this morning.

We also have a couple pictures we want to show you from yesterday of the work that firefighters did to prepare for today. They've largely been mopping up, as they call it, going through areas, making sure that all hot spots are out, and also clearing away any of the brush that they say could serve as a bed to ignite any new embers. But again, there's a lot of hope out here today that hopefully that time -- with that time the worst may be passed.

Back to you.

LEMON: Hey, Kara, before you go away, have investigators determined how this fire started?

FINNSTROM: We understand they're getting closer, and that they do believe, you know, that it's a human cause. They've actually located an area that they think it was in. But let me check with our firefighter and see if we have anymore information that I haven't gotten yet.

Any closer on a cause that you know of?

SWANSON: What we know is the investigators are continuing their investigation. They're following up on numerous tips and leads right now. They have the origin identified, but we still don't have a cause specifically at this time.

FINNSTROM: OK. All right.

Well, there you go. There's the latest. Still no cause, but hopefully getting a little closer.

LEMON: Kara Finnstrom, thank you.

PHILLIPS: The immigration battle appears to be over, at least until 2009. The Senate today blocked President Bush's immigration reform compromise, and it wasn't even close. A move to cut off debate failed by 14 votes. The president's response was short and blunt.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm sorry the Senate was unable to reach agreement on the bill this morning. Illegal immigration is one of the top concerns of the American people, and Congress's failure to act on it is a disappointment.

The American people understand the status quo is unacceptable when it comes to our immigration laws. A lot of us worked hard to see if we couldn't find a common ground and it didn't work. (END VIDEO CLIP)

PHILLIPS: Congress is not expected to reconsider immigration until after the 2008 elections. Opponents, including many in the president's own party, attacked the current bill as amnesty for illegal aliens.

(BEGIN VIDEO CLIP)

SEN. JEFF SESSIONS (R), ALABAMA: It was produced as a work of political senators trying to work a compromise to pass something. This time we need to pass legislation that will work, and we need to make sure that the executive branch, this president, and the next president, understands that we expect the system to be lawful in the future.

(END VIDEO CLIP)

PHILLIPS: Now, a similar measure failed in Congress last year.

CNN's Brianna Keilar is in Washington with more -- Brianna.

BRIANNA KEILAR, CNN CORRESPONDENT: Well, Kyra, $4.4 billion for border protection, a temporary worker program, and a path to citizenship for an estimated 12 million illegal immigrants now in the U.S., that was the plan endorsed by President Bush, and that is the plan that went down in flames today. This was a crucial vote. Supporters of this bill, as you said, needed 60 votes to keep the immigration reform bill alive, and they fell well short with just 46 votes.

(BEGIN VIDEO CLIP)

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: Disappointed in the outcome of the votes there, but understand full well that the inevitable outcome it's going to be positive, and we're going to be successful.

(END VIDEO CLIP)

KEILAR: So optimism there from Senator Kennedy, one of the architects of the bill, but the outlook for this issue is, no doubt, grim. Remember, it wasn't just Republicans reeling against this bill. Some Democrats said the legislation would split up families, but it was many Republicans who said that the bill's path to citizenship for millions of illegal immigrants was basically amnesty.

(BEGIN VIDEO CLIP)

SEN. JIM DEMINT (R), SOUTH CAROLINA: No one here believes in the status quo. Everyone here knows that we have a problem that we need to solve. But we can't solve it with more empty promises.

(END VIDEO CLIP)

KEILAR: And it appears the problem won't be solved anytime soon. Some senators have said the issue is now effectively dead for this Congress -- Kyra.

PHILLIPS: So no talk at all of reviving this bill or maybe any type of emergency amendment to it or anything?

KEILAR: Well, reviving this bill would certainly be a long shot. There is some talk at this point, conservative Republicans talking about asking President Bush to sign an emergency supplemental spending bill that would be about $6 billion for increasing mostly just border protection there. But this is just an idea that's really being floated around. And as we get closer and closer to the '08 election, this issue becomes less and less of a priority -- Kyra.

PHILLIPS: All right, Brianna. Thanks so much.

Now, if the public had to vote on immigration reform, it probably wouldn't fare any better. In a CNN-Opinion Research Corporation poll conducted last week, 30 percent said they support the measure that failed today, 47 percent oppose it. Now, most of the opponents said it would help illegal immigrants too much, but some said it wouldn't help them enough. Nineteen percent didn't know enough about the bill to even have an opinion.

LEMON: We started this newscast talking about possible tainted fish being imported from China. Of course our Elizabeth Cohen is listening to a press conference regarding that fish import. It is a food safety alert. And she's going to join us in just a few minutes with the very latest on that.

PHILLIPS: Straight ahead, the justices speak, and Jeffrey Toobin was listening. He'll break down the details on today's major Supreme Court ruling.

LEMON: And we're also keeping an eye on the Federal Reserve. An interest rate announcement is due any minute.

PHILLIPS: Plus, a match made in media heaven -- Paris Hilton, Larry King. Enough said.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

LEMON: All right. Just getting news that the FDA is going to have a press conference, a major announcement beginning at 3:00 p.m. Eastern. It's about a ban on fish from China. That's all we know.

We're hearing it is a food safety alert. So we're going to bring that press conference to you. Our Elizabeth Cohen is also monitoring the situation. She's going to bring you news about that as well.

PHILLIPS: 2:13 Eastern Time. Here are three of the stories we're working on in the CNN NEWSROOM this hour.

President Bush says he's disappointed by today's Senate vote effectively defeating his immigration plan. An effort to move the bill through the Senate failed by 14 votes. Most observers say that immigration reform is just a dead issue, at least until 2009, when there's a new president.

Flash flood warnings are in effect in Texas after several days of nearly nonstop rainfall. Two people are missing today.

And nearly 20 years after the bombing of Pan Am Flight 103 over Lockerbie, Scotland, a former Libyan intelligence agent may be allowed to appeal his conviction. A Scottish judicial panel says there's new evidence suggesting there may have been a miscarriage of justice.

LEMON: I guess you can call it the moment that a lot of people have been waiting for. The Federal Reserve is wrapping up its two-day meeting, and we should hear the verdict on interest rates at any moment now.

(BUSINESS REPORT)

PHILLIPS: Well, it's downstream for Marble Falls, but it's not under water. Straight ahead in the NEWSROOM, a closer look at how planning spared Austin, Texas, from a major flood.

LEMON: Race and education. Capital punishment and mental illness. Two major decisions handed down on the last day of the term.

Details straight ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Right now the head of the FDA is actually holding a news conference talking about this major ban on fish.

Now, is it just coming from China? Is that solely...

COHEN: Right, just Chinese fish.

PHILLIPS: OK.

COHEN: China is the third leading importer -- leading exporter to the United States of farm-raised fish. So we're talking about a lot of fish.

Did you know that China makes 70 percent of the farm-raised fish sold all over the world. That's a lot of fish.

PHILLIPS: Yes. And you were even saying we don't even know if it's coming from China. Like, we can't go into a grocery store and say -- and look through the fish and see if it's coming from China or another place, right?

COHEN: And that's perhaps the biggest problem. Let me explain what the FDA said and then we'll talk about what maybe consumers can do.

PHILLIPS: OK.

COHEN: What the FDA just said on a teleconference that I was just on, they said that they are turning away all Chinese fish of certain species because when they do their inspections, they are finding that a pretty high percentage, about 15 percent of them, have these drugs in the fish that they're not supposed to have.

These are drugs that are banned in fish. Fish are not supposed to be given them if the fish is going to be sold in the U.S. And inspection after inspection is finding that many fish from China have these medicines in them.

So let's go over the five species of fish that they're not going to take from China anymore.

Two of them are quite common. The other three are a little bit -- ones you might not have heard of.

Shrimp and catfish, those are two that are on the list. Also some other ones called Basa and Dafe (ph), and also one called eel. People have heard of eel.

So those are the five species that the FDA is saying we're not going to take from China anymore, and the reason why is that they contained antibiotics, and also some antifungals that you and I are not supposed to be eating.

PHILLIPS: Well, think about shrimp and catfish. Why do we need to take that in from China when we have catfish farms all across the U.S., shrimpers all across the U.S.? So this could be better for our economy if we start buying more from our own people, right?

COHEN: Well, I'm not a economic expert, but I think money is the reason. I mean, one scientist said to one of our producers, if you're out shopping and you find some really, really cheap fish, excellent chance that that fish is from China. I mean, this stuff is cheap when you get, you know, 30 shrimp for $1.50 or whatever. A really good chance that comes from China.

PHILLIPS: So that's -- oh, interesting. OK.

All right. So you were on this call, and then the actual news conference will be in the 3:00 Eastern, right? We're going to watch that and then talk about what happens.

COHEN: Or we can talk some more now. Whatever you like.

PHILLIPS: OK. Yes, absolutely. Do you want to talk more?

COHEN: Sure, let's talk more about that.

PHILLIPS: All right. I thought I was getting the wrap, but -- I am -- oh, I am getting the wrap.

COHEN: OK. We'll talk more later.

PHILLIPS: OK. Sorry about that, Elizabeth.

COHEN: It was fine with me if you wanted to talk. I don't know if it was fine with them. LEMON: Everybody is interested in this, because, you know, the fishermen and the fisheries in Louisiana and those southern states, they've been saying this for years about Chinese fish.

COHEN: Right.

LEMON: But everyone thought they were doing it because they didn't want the Chinese people (ph) coming in. But it turns out to be true in some cases.

COHEN: Right. I mean, they inspect these fish. A relatively hefty percentage of them have these medicines that you and I are not supposed to be eating.

PHILLIPS: All right. We'll track it. We'll see you back here definitely at 3:00.

COHEN: OK. Sounds good.

(CROSSTALK)

LEMON: We're going to talk more. We'll talk more. All right.

Thanks.

We're going to move on now. We're going to talk about rain. More rain is falling on Texas, adding to the flooding blamed for 11 deaths over the past week and a half. Flash flood warnings remain in effect. Dozens of people have had to be recused in Marble Falls, where the mayor reports extensive damage.

(BEGIN VIDEO CLIP)

MAYOR RAYMOND WHITMAN, MARBLE FALLS, TEXAS: The damage is even worse than I anticipated. We are seeing an enormous amount of damage to our infrastructure -- bridges, streets.

(END VIDEO CLIP)

LEMON: Mayor Whitman's own living room was filled with water.

Well, the floods in central Texas could have been much worse if not for the floodgates along the Colorado River.

CNN's Chad Myers reports.

(BEGIN VIDEOTAPE)

CHAD MYERS, CNN METEOROLOGIST: One of the big questions today is why did Austin, Texas, not flood? If there were 18 inches of rain upriver on the Colorado River at Marble Falls, why did Austin not flood?

Well, all the water has to get down to the Gulf of Mexico at some point in time. There's Austin and central Texas, especially the hill country to the west. That's where the rain was. In fact, there wasn't much rain in Austin proper, but it was Marble Falls. I'm sure you already know the name of that town. This is where all the rain fell.

And into this Colorado River basin, the water ran off. Obviously, a lot of flooding in Marble Falls. And then all the way down the Colorado River.

But between that, between that rainfall and Austin is a major lake, Lake Travis. Lots of popular recreation activities there, and a big dam holding the water back.

And the way a reservoir works is, even with this reservoir, before the rain and the water even got to the dam into the lake, they were letting the water down, letting the water out as fast as they could, and then they only could get to a certain point and then the river down to the south of there was getting full. They couldn't go any farther than that. But they're letting the water out at a controlled lake.

Now, Lake Travis is going up. That level is going up, up about 12 feet at times in some spots. And then the water runs down the river, down across into Lake Austin and through the city of Austin, Texas. But because only a certain amount of water is coming out of that reservoir and out of that dam, Austin, Texas, is not flooding, and that's how a reservoir should work.

(END VIDEOTAPE)

PHILLIPS: Race and education, capital punishment and mental illness. Two major Supreme Court decisions ended up at the last day of the term.

We'll have details from the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Hello everyone, I'm Kyra Phillips live in the CNN World Headquarters in Atlanta.

LEMON: And I'm Don Lemon.

Should race be a factor in determining where your child goes to school? The Supreme Court answers that question with a qualified no.

PHILLIPS: Our legal expert Jeffrey Toobin joins us to explain the decision that sparked intense debate over the meaning of discrimination.

You're live in the CNN NEWSROOM.

First though, new developments in the search for a missing 4- year-old British girl. Spanish police say they're investigating whether two people arrested in an unrelated case may be linked to the disappearance of 4-year-old Madeleine McCann (ph).

Our Al Goodman is in Madrid with the very latest.

Al, what did you find out?

AL GOODMAN, MADRID BUREAU CHIEF: Hi, Kyra.

Well, a government official and a Spanish police official are telling CNN the following: that first, there's no firm link that's been established but the police are investigating this couple to see whether they may have made a call to the McCann family or people around the McCann family, trying to get the reward for the safe return of young Madeleine McCann, or trying to extort money.

Here's how it played out. Early this day in a luxury development in southern Spain right next to Gibraltar, Spanish police arrested an Italian man on a French arrest warrant on an unrelated case for, apparently, torturing a child. A Portugese woman was also arrested with him. She doesn't figure in the French arrest warrant, but she was with him, his romantic partner. They were both taken into custody.

Once in custody, the Spanish police began investigating and came up with this possible link that they may have made this call to the McCann family or people connected to the McCann family, trying to get money out.

So that is where we are right now on this case -- Kyra.

PHILLIPS: All right, Al Goodman will continue to follow it. Appreciate it, thanks so much.

LEMON: And we're getting new information in from the FDA. FDA is going to raise their standards when it comes to fish, especially from China, being imported in to the United States. According to a document just from the FDA, it says that some of the fish which come into the country from China, they have toxins in them that are not allowed in seafood sold in the United States.

Now, some of those fish include catfish, bossa (ph), shrimp, das (ph) which is related to carp, and also eel from China. So, the FDA is talking about this now. We're going to update you on the situation with someone from the FDA. Also, our Elizabeth Cohen is going to tell you more about this. But specifically, it's not a ban on seafood now, but they are requiring some stronger restrictions on what comes into the country.

We're going to continue to talk about this as well as other issues.

The Supreme Court made a couple of decisions today that are really shocking for many people in the country. We'll talk about that when we come back.

(COMMERCIAL BREAK)

LEMON: Race and education, it's been an emotional debate for well over a century, and the latest Supreme Court pronouncement won't be the final word. But, it's a major decision, nonetheless. A five to four ruling, striking down the use of race as a factor in deciding where children can and can't attend school. Supporters call it a victory against discrimination, critics call it a setback.

(BEGIN VIDEO CLIP)

REP. CAROLYN KILPATRICK, (D) MICHIGAN: Fifty-three years ago, in this building, the Supreme Court ruled that this must be a just society, that there should be equal education and access for all Americans. In one swoop, in a 5-4 decision, this court turned that 53-year-old decision and others upside down.

(END VIDEO CLIP)

LEMON: Let's bring in our Senior Legal Analyst Jeffrey Toobin.

Jeffrey, before you start, do you want to give us a weather report? I mean ...

JEFFREY TOOBIN, SENIOR LEGAL ANALYST: Don, can I put an ark on my expense account? I don't know, because I'm just like -- I think I may have that question later.

LEMON: Oh, Jeffrey, thank you for doing this. And you heard Representative Kilpatrick there. Break it down to us. So, what does this mean -- obviously, she is very upset by this. She says it's a setback of over 40 years of what, you know, Rowe versus Wade tried to accomplish. What do you -- how do you classify this?

TOOBIN: Well, this is a major, major opinion, because it basically says to school districts, you may not use race to decide who goes to which school. And a lot of districts do that, and that's a big change for a lot of districts, and, you know, going back to Brown versus Board of Education in 1954, schools have been required to integrate.

Now, they can't do it except by residential neighborhood or whatever. Individual students saying this black kid goes here because you're black, done, over, can't do it.

LEMON: So this -- this really, decision was for Seattle and Louisville, but do you think this is going to have repercussions throughout the country?

TOOBIN: Yes.

LEMON: Do you think that other districts will start doing the same thing?

TOOBIN: Absolutely, I mean a lot of school districts -- we don't know really how many, because there's no real (INAUDIBLE) on this, but a lot of districts have said we want to preserve racial balance. We think it's in the interest of the community not to have all-white, all-black schools. So, we're going to engineer that. Supreme Court says no, you can't do that anymore.

LEMON: If we -- Jeffrey, and we may be losing your mic. If we do, then I'll wrap it up for you ...

TOOBIN: OK.

LEMON: ...but I want you to stay with us as long as even (ph) -- if you're comfortable, if you're not getting too wet.

Here's the worry for those with a dissenting view, that the decision would amount to re-segregation. What do you think? Is that a valid concern?

TOOBIN: Well, I think it is a concern that, you know, if -- if the majority opinion in this case basically said, you have to assign local schools by residential area. Kids have to go to their local schools. You can't use race to assign how people ...

LEMON: All right, our Senior Legal Analyst Jeffrey Toobin there in the rain. Apparently the water has knocked out his microphone. But we thank him for joining us. Of course, this decision made earlier today, Jeffrey reacting to that and giving us his perspective on that (ph).

We're not going to get him back obviously, because it's really too wet out there for him.

Thanks, Jeffrey.

PHILLIPS: All right, we're going to go ahead and move on and talk about Iraq and a busy transportation center in Baghdad. Nothing but rubble right now after a car bomb attack at rush hour. Take a look at this crater. That's where explosives went off at a bus station about 8:30 a.m. Baghdad time. At least 22 people were killed, more than 30 hurt. Police say most of the victims were waiting for rides to work.

Another car bomb in Baghdad today. This one at a gas station that killed four people. Now Iraqi police say they found 20 headless bodies in a lawless area known as Salman Pak. That's just southeast of Baghdad.

U.S. troops have been pretty busy there capturing territory and turning it over to Iraqi forces just to hold on to. Both of those are pretty tricky and uncertain positions. CNN's Frederik Pleitgen is there.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN CORRESPONDENT (voice over): U.S. troops fire mortar rounds at a suspected insurgent position. Their mission, clear and secure this area south of Baghdad so Iraqi forces can take control of a checkpoint.

After almost three days of fighting, they hand over the outpost. Now, it's up to the Iraqi national police to hold the position.

"This is a big sector and we need a lot of troops and coalition forces will hopefully help us stand here," the Iraqi colonel says. The insurgents came sooner than expected. A mosque right next to the checkpoint. And this is that same mosque only about two hours after U.S. troops left the area. As this video, shot from an aerial drone shows, the insurgents at the mosque launch an attack on the outpost, destroying a guard tower and killing several Iraqi officers.

With the Iraqis struggling, a British aircraft is called in to aid them. The fighter drops a massive 2,000 pound bomb on a house used by the attackers. A rare opportunity for coalition forces to effectively use air power against insurgents.

COL. WAYNE GRIGSBY, U.S. ARMY: When the enemy does mass this way, we focus right then on the secure line of operation and we take everything that we have to kill or capture the enemy.

PLEITGEN: But while military officials call the air strike a success, they acknowledge it highlights a major problem for U.S. forces in Iraq. American troops fight and die to win terrain from insurgents, but Iraqi security force are often unable to hold the ground on their own.

MAJ. GEN. RICK LYNCH, U.S. ARMY: The key is, someone has to stay. There has to be a persistent security presence and that has to be Iraqi security forces. So we continue to work with the government of Iraq, and the leaders of the Iraqi security forces to get that persistent presence.

PLEITGEN: A crucial point military leaders say, even with the major increase of U.S. soldiers in Iraq, they will not be able to hold all the ground they are now fighting for. That is something the Iraqis must do on their own.

Frederik Pleitgen, CNN, Salman Pak, Iraq.

(END VIDEOTAPE)

LEMON: It is where America's treasures are kept but was the Smithsonian Institution's man in charge more interested in filling his own treasure chest?

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: I'm Brooke Anderson in Hollywood.

The Spice Girls are back. Ginger, Posh, Baby, Sporty and Scary are reuniting for a worldwide concert tour. I'll have that whole story up next, in the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Paris Hilton scared straight or the master of media makeover. Probably a little of both. You can be the judge, though, as you listen to the newly freed socialite. She spoke to CNN's Larry King last night, he even got a little smoochy there. It was her first TV interview since her release from an L.A. county jail.

(BEGIN VIDEO CLIP) LARRY KING, CNN HOST: When you look back on the whole thing, what -- do you think you did wrong?

PARIS HILTON, SOCIALITE: Well, this all started off with the DUI, which was a 0.08, and I will never drink and drive again. Granted, it was, you know, one drink, but --

KING: That's all it was?

HILTON: Yes.

KING: And with your weight, right?

HILTON: Yes. So I was on my way, actually, a couple blocks to In and Out, I should never have even driven.

KING: Call a limo.

HILTON: Yes, definitely.

KING: A cab.

HILTON: I will never take that mistake again. I take full responsibility and I hope by me serving this sentence, and I know it has helped because I have received a lot of letters from different people that they have made the mistake of drinking and driving. And because I went through this, like wow, it could happen to me too.

KING: Do you think you got a raw deal? Do you?

HILTON: Yes, I do. But -- I don't know. Even though I hated it, I'm glad it happened in a way, because it's really changed my life forever, and I feel stronger than ever. I don't know. I just feel --

KING: So bad turned to good?

HILTON: Yes. Yes, I feel like this is a blessing in disguise.

(END VIDEO CLIP)

PHILLIPS: Hilton's party girl image helped make her a paparazzi favorite. She now says that she enjoyed the Hollywood night life, but vows, quote, "it is not going to be the mainstay of my life anymore."

Friday night, Michael Moore's first prime time interview on his controversial new movie, on "Larry King Live." Moore says the American health care system gets away with murder. Critics say he's the sicko. He's taking your calls live Friday night at 9:00 eastern on "Larry King Live."

Brooke Anderson is in Hollywood, and up to the minute on the latest entertainment news. Although today's news takes us into the past a little bit. What's going on, Brooke?

ANDERSON: It does, Kyra. The latest news is a little bit retro. The man behind the boy bands of the '90s is now facing more criminal charges. Lou Pearlman created the Back Street Boys and 'N Sync in the '90s.

Well, yesterday the federal government filed a five count indictment for fraud against the former music mogul. He's being accused of mail fraud, bank fraud, and wire fraud in his dealings with an Evansville, Indiana bank. And that may be just the tip of the iceberg. Investigators also say that Pearlman defrauded more than a thousand individual investors out of more than $315 million.

And it's not like he can make restitution, he may not even have a back street boys lunch box to his name, because his estate was sold earlier this month at auction as the result of involuntary bankruptcy proceedings. Fifty-three-year-old Pearlman was busted in Bali earlier this month after being charged with another case of bank fraud. He is currently in the process, Kyra, of being transferred back to Florida.

PHILLIPS: Well, this is quite a fall from grace. It's tough to imagine when you remember how much money those bands made in the '90s. I mean, they were huge hits.

ANDERSON: Highly successful, but you know, it wasn't just the boy bands. Remember that all-female group, the Spice Girls? Well, they sold more than 55 million albums in the '90s, and they're reuniting for a new world tour.

The Spice Girls officially split up in 2001, but the original five spices haven't performed together since 1998 when Ginger spice quit to start a solo career. Their tour will also be accompanied by a greatest hits album, as well as an official TV documentary.

But now we can call these ladies spice moms because they have seven kids among them. And Victoria Beckham, aka Posh Spice, has three kids with international soccer star, and husband David Beckham. And says that she wants her kids to see what mommy used to do.

The group will be playing three concerts in the U.S. this December, one performance in Los Angeles, New York and Vegas. And, Kyra, when one of my colleagues heard this news he screamed with delight and is actually planning an entire weekend around their concert here in L.A.

PHILLIPS: Are you talking about Don Lemon?

LEMON: N-O.

PHILLIPS: I'd like to know who that colleague is. Go ahead, tell us who it is. Who is the boy band ...

ANDERSON: I don't know if he wants me to say his name, but he's very, very thrilled that they're coming to Los Angeles.

PHILLIPS: Interesting. OK, well since you didn't fess up.

Well, British pop culture invasion, but there is a bigger British icon set to nominate the -- or dominate rather, the international scene. Right? ANDERSON: That's right, Kyra. And this one isn't even real. The final Harry Potter book is on its way. Let's take a look. There it is, rolling off the presses. Scholastic is printing 12 million copies of the book in the United States, which they hope will disappear off the shelves like magic. The books will go on sale worldwide, July 21st at 12:01 a.m.

The publishers will do their best to make sure that Harry's final fate remains a secret until then. That might be a tough task. Fans of the first six books in the series have bought more than 325 million copies worldwide. It's been translated into more than 65 languages. So, quite remarkable.

Alright, let's talk "Showbiz Tonight" now. Coming up tonight, we have got the inside story on Larry King's exclusive interview with Paris Hilton from Larry King himself. The stories you haven't heard before, on TV's most provocative entertainment news show, "Showbiz Tonight," 11:00 eastern and pacific. A.J. Hammer and I hope to see you then.

Kyra, back to you.

PHILLIPS: Thank you, Brooke.

LEMON: It's where America's treasures are kept, but was the Smithsonian Institution's man in charge more interested in filling his own treasure chest?

NICOLE LAPIN, CNN DOT COM DESK: For 40 years the American bald eagle has been listed as an endangered or threatened species. But today this American icon is off the list. At CNN.com you can check out all sorts of pictures of bald eagles sent in by you, our I- Reporters.

Bill Schlegelmilch, of Homer, Alaska, took these images earlier in the year. Bill says people come from all over the world to take pictures of eagles like these.

And Paula Scherbroeck took this photo outside her home in Illinois. She says the increased number of eagles over the years validates just how important management of threatened species is to their survival.

And you can check out this photo by James Carpenter, he took this shot right near the Cook Inlet in Alaska. He says nothing better symbolizes better the strength, honor, and courage of the American people than the bald eagle.

If you want to see a full gallery, or if you want to send us your own pictures of eagles, just go to CNN.com/exchange. For the dot com desk, I'm Nicole Lapin.

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LEMON: I bet you've never heard of Lawrence Small, but you paid his salary for years. Most of it anyway, and he earned more than the president. His job was to oversee the vast and varied treasures of the Smithsonian Institution and he also found time to moonlight, and that, too, was extremely lucrative. CNN's Joe Johns investigates.

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JOE JOHNS, CNN CORRESPONDENT (voice over): The vast Smithsonian Institution has a billion dollar budget and you the taxpayer's pay most of it. And evidence is mounting that this guy, Lawrence Small, who ran all of it from a castle-like Smithsonian building, was actually operating like a king.

CHARLES BOWSHER, FMR. U.S. COMPTROLLER GENERAL: He came out of Wall Street, if you keep that in mind, and they live this kind of life up there. You know, limousines all the time, going first class.

JOHNS: Not to mention, private jets, lavish parties and a salary that far exceed the compensation of people who held the job before him. Small started out seven years ago making $536,000. By the time he resigned, he was up to $915,000, including perks, according to a new report examining his royal treatment.

(on camera): One of the perks Small got for taking the job, was a six figure housing allowance allowing him to use this house as personal residence for official Smithsonian hospitality.

(voice over): In the year 2000, that housing allowance started out at about $150,000 a year. By 2007, it was up to almost $200,000.

The report said Small rarely used his house for entertaining, that the allowance was actually a way to increase his pay. Why such a big salary? His bosses, the Smithsonian board, thought with Small's street connections, he would be a fund-raising superstar, but that report said with Small, private fund-raising actually went down, not up.

All of the controversy comes down to money. Not only what the Smithsonian paid him, but from what he earned elsewhere at the same time. Small also earned almost $643,000 in cash, $3.5 million in stock and another $1.8 million in stock options by serving on two corporate boards.

So how could Small do all of this while ruling the Smithsonian kingdom? By taking time off, of course. Sixty-four days of leave to work for the boards, and that's apparently in addition to the ten weeks of vacation he took almost every year he worked at the castle.

PABLO EISENBERG, GEORGETOWN CTR. ON NON-PROFITS: He was -- this disrespectful the fact he had a public trust. I think he tried to be greedy and get every penny he could, serving on two outside corporation boards, not spending sufficient time at the Smithsonian.

JOHNS: But like any good story about royalty, there is a twist, it appears all of Small's actions were allowable under the deal he had with his bosses, the Smithsonian's board of regents. And as it happens, one of them was on Capital Hill trying to explain how they let this happen. (on camera): There has been a lot of talk about the board in the past, being asleep at the switch.

ROGER SANT, SMITHSONIAN BOARD OF REGENTS: Yes.

Johns: But I haven't heard the response.

SANT: Oh, we -- I think we've said we were. You know, we agreed, you know, when we saw the evidence of some of the things we've missed, we just said, yes, that's just an appropriate title. We -- we're nonetheless -- feel like its our responsibility to change that.

JOHNS: Lawrence Small didn't return our calls. He did say, in his resignation letter, that accusations about his compensation were baseless, and he suggested he was leaving because of congressional meddling at Smithsonian. But keeping him honest, that kingdom where America's treasures are kept, is now taking a long, hard look at who gets the crown next time.

Joe Johns, CNN, Washington.

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