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CNN Saturday Morning News

Terror Alert in London; Officials Urging American Public to be Vigilant, But Enjoy the Fourth; ATMs Changed Banking Industry Forever; Chinese Government Unhappy With the U.S. FDA

Aired June 30, 2007 - 09:00   ET

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

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Stay tuned for more news now on CNN.
BETTY NGUYEN, CNN ANCHOR: From the CNN Center right here in Atlanta, Georgia, I'm Betty Nguyen. This is CNN SATURDAY MORNING.

T.J. HOLMES, CNN ANCHOR: Good morning to you all. I'm T.J. Holmes. Glad you could be here with us.

We are going to start this morning with that developing story out of London. Our top story terror alert there. Investigators right now checking security camera footage from the areas around two undetonated car bombs found on Friday. Police also making themselves highly visible this morning, trying to assuage any safety fears Londoners may have.

Our CNN's Paula Newton is in London for us now with the very latest.

(BEGIN VIDEOTAPE)

PAULA NEWTON, CNN CORRESPONDENT (voice-over): With this light green Mercedes, Britain turned a corner. The new risk dead ahead chillingly uttered in two words, car bomb.

UNIDENTIFIED MALE: There's no intelligence whatsoever that we were going to be attacked in this way.

NEWTON: As crude as it was, security forces close to the investigation say the bomb would have worked. Gallons of gasoline packed in the front and back, gas canisters, the kind used for barbecues stuffed inside, the whole thing laced with nails, and CNN has learned, tethered to a mobile phone.

UNIDENTIFIED MALE: This was a bit different. This actually looks like the sort of bombs we've had in Iraq and Afghanistan. This was an IED, an improvised explosive device, which was good enough to kill quite a lot of people.

NEWTON (on camera): Investigators will now take this car away to continue to sweep it for any kind of forensic evidence that would give them more clues into this alleged plot.

(voice-over): That evidence will enhance hours of CCTV footage. There is no hiding from cameras on this piece of London real estate. Still, Britain is now facing credible threats in the air, on the ground, and, of course, underground, all of it borrowing from previous plots. The gasly mows (ph) project masterminded by Darren Barotte, he is serving a life sentence. His plans, though, worryingly similar. In 2004, he was busted for intending to blow up limousines in Britain and the United States.

Then there is the fertilizer bomb plot, also foiled by police in 2004, one of the targets a nightclub. Evidence showing the bombers thought it was a legitimate target. Police say they are considering any and all links to other plots.

UNIDENTIFIED MALE: I'm keeping an entirely open mind about that. I have, of course, referred to some facets, some features of what's happened which resonate with previous plots. But I wouldn't at this stage like to speculate. I think that would probably be unhelpful. I want to investigate.

NEWTON: With security alerts now cropping up in other locations and police now confirming a second car bomb here on Park Lane, investigators are trying to rule out their worst fear, that there will yet be more.

UNIDENTIFIED FEMALE: There is a huge community that we know, a spy community that actually will advise on how best to blow up a car. And so therefore it's not surprising that you see similarities in various ways.

NEWTON: As a new investigation into two car bombs continues, this could all be now a new sinister spin on the threat here and one that will be very difficult to prevent.

(END VIDEOTAPE)

HOLMES: All right. Our Paula Newton and other reporters certainly there have been working this story for us in London. A lot of developments overnight and a lot to report certainly there from the papers. They're taking all of that out from London for us.

Also, really taking a pulse of folks on the streets. We heard people are being asked there to stay vigilant. This is something, terror that people have been dealing with for years there in London. A lot of people are going about their daily lives, staying vigilant but still not allowing this to really slow them down. Even heard from our reporter Paula Newton that a lot of folks more worried about the weather and talking about it today. Kind of a rainy day there in London. We hope to have Paula Newton we are going to hear from her coming up here shortly, stay tuned to get some insights from her about what's happening on the street.

NGUYEN: Well in an effort to stay vigilant, people can track the situation on the streets, and you can check out the cameras from London as well, right from your very own computer. The site is Trafficland.com, and it has links to security cameras all over the city, links just like what you're seeing right now. You can see what's going on in Piccadilly Circus or over at Trafalgar Square. London probably one of the most watched over cities in the world with a huge number of cameras all around the city.

HOLMES: Well, on the heels of that bomb scare in London, another bomb scare to tell you about this morning in Spain. Short time ago, wire reports saying a small bomb detonated at the airport in Ibiza, but not until after police had already evacuated the area. It's not known right now if the bomb went off on its own or if it was detonated by a police bomb squad. No reports of injuries right now. Ibiza is a popular tourist destination. We're going to continue to follow this story and bring you any updates as we get them.

NGUYEN: So how concerned should Americans be about the potential four car bombs right here in the U.S.? Homeland Security correspondent Jeanne Meserve joins us now live from Washington. Jeanne, I want to ask you how worried are officials that a similar scenario could very well happen here?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: They are worried. Today U.S. officials are monitoring the investigation in London, offering help. But their assessment remains there is no U.S. link. There is no specific and credible threat here. Officials are urging the public to be vigilant but to go ahead and enjoy the July 4th holiday. Experts are surprised that car and truck bombs haven't already been used here. They are made from readily available and inexpensive materials. They are easily concealed and easy to move, and the technology and tactics are constantly being upgraded by U.S. enemies in Iraq and shared on the Internet.

(BEGIN VIDEO CLIP)

THOMAS SANDERSON, SECURITY EXPERT, CSIS: What you have to rely on is the vigilance of the population, the good work of the police and intelligence to prevent this from happening. But nonetheless, if you want to carry out a crude attack with a simple car bomb or the use of a side arm or semiautomatic weapon, that's relatively easy to do.

(END VIDEO CLIP)

MESERVE: The Department of Homeland Security did send out a bulletin to state and local law enforcement last evening advising them on how to detect a car or truck bomb and telling them what protective steps to take. But cars are everywhere. They cannot all be inspected. Preventing a car bomb explosion is a challenge, a very difficult one at that.

Betty.

NGUYEN: You are so absolutely right. That's why we all have to keep our eyes out. Jeanne Meserve, thank you for the report this morning.

Also want to tell you that this weekend on CNN, there's a Special Investigations Unit on the heels of that terror scare in the heart of London. CNN's Christiane Amanpour uncovers a surprising new breed of young British Muslims. That is Saturday and Sunday night at 8:00 Eastern and we'll get a preview of Christiane's special that is ahead right here in the news room. HOLMES: We do want to head back across the pond to Alphonso Van Marsh who is in London getting the latest on what is happening with the investigation. Hello to you Alphonso.

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Well, we understand that Britain's new Prime Minister Gordon Brown met with his foreign secretary and home secretary today to discuss this developing situation. There was no comment to reporters afterwards, but what we do know is that one of the largest man hunts is under way, presumably using CC television images, London being one of the most photographed cities in terms of CCTV on Earth. The presumption is that some camera somewhere may have caught an image of the people who might be responsible, or person responsible for these two car bombs.

In the meantime, British officials asking the public to be vigilant, to keep their eyes and ears open. The mood on the streets is best reflected in some of the newspaper reporting today. You've got "The Sun" here saying "Saved." two bombs foiled in the west end. Perhaps at the other extreme, we have another newspaper here, "The Daily Mail." Their headline reflecting the question on a lot of people's minds today, "Where's the next bomb?" Now, security officials here saying they want people to keep their eyes and ears open. This is a big weekend.

That there is a memorial concert in memory of Diana, Princess of Wales, scheduled for this weekend. Wimbledon is still going on, those tennis championships, as well as a gay pride march going on today. People are saying they're going to keep their ears and eyes open. I say keep their ears open and eyes open, and they're going to be sure that something like this certainly won't happen, that any kind of car bomb that they my find, they'll be certain to let officials know.

T.J.

HOLMES: Alphonso, if we can, if you can take us back to the first newspaper you had. I think it said, "Saved" read the rest of it. It says "Saved by a Drunk" kind of talk about this for us. Are people uneasy as well? This is kind of just luck that people found this and not necessarily intelligence.

VAN MARSH: It is. I should be reminded that our cameras are perhaps a little more trained on the headlines than I expected. But, yes, in reference to that, this is the first car bomb that was found, that gray green Mercedes. In reference that some witnesses have said that allegedly they saw a person kind of wobbling outside of that car, away from that car after the car was left in the early hours of the night between Thursday and Friday morning.

Again, in reference to the clamper, that has to do with the idea that the second vehicle was actually towed from the original location where that car was found. Those clampers, we're suspicious when they said that that second vehicle had smelled like gasoline, which, of course, led investigators and police to take a closer look at that car and realize it also had fuel, nails, and gas cylinders in the back. And a hero cop, those officials who had done their job to keep the public safe finding those bombs and defusing them before they could do what police say could have been a significant damage to life.

HOLMES: Saved by a drunk, a clamper, and a cop, whatever works. In this situation, it worked this time. Alphonso, thank you for taking us through that. Thank you so much for the report.

NGUYEN: Well back here in the U.S., an illegal campfire now being blamed for starting that devastating wildfire in Lake Tahoe in California. Look at these pictures. More than 250 homes and structures have been destroyed in the blaze, which is about 80 percent contained at this hour. Some evacuated residents are being allowed to return. A campfire ban has been in effect because of the dry conditions in that area. But investigators don't think the fire was deliberately set.

HOLMES: What a juxtaposition to go from those pictures to nothing but water, more water than they know what to do with in certain parts of the country.

REYNOLDS WOLF, CNN METEOROLOGIST: It's frustrating, isn't it? It's a tale of the haves and have-nots. They could use that rain in parts of the southeast as well as out west where they're fighting the fires. Instead, it's smack dab in the middle of the U.S. and parts of the central southern Plains where they don't need it.

A couple of places to focus on, not just in Texas and Oklahoma, but into Kansas and Missouri as well where from say St. Louis and points westward over to Kansas City, southward to the northeast of Tulsa and just to the east of Wichita, the rain continues to fall. It should continue to fall not through much of the morning, but into the mid day hours as well. When you make your way farther south into parts of Oklahoma City and into the Red River, rain should be a bit more sporadic today. Problem is the ground is saturated, they don't need any more. That's certainly going to be the case. At least a 30 to 40 percent chance of scattered showers and storms. And some of these storms when they pop up could dump anywhere from two to three inches of rainfall. Some places as much as five inches of rain. That could really pose more problems.

Mean while, as far south as we go to Austin, conditions are better certainly some great news for them. We're going to keep our fingers crossed that they remain dry through the weekend although rain will be in the picture for central Texas on and off through the weekend as well.

Back to you.

NGUYEN: Thank you Reynolds. We do have a warning for seafood lovers out there. If you're eating shrimp, fish, or other seafood from China, it may be contaminated. Details on a U.S. crackdown that is ahead.

HOLMES: And the wait is over. The critics weigh in. What's the word on the new Apple iPhone? We'll demonstrate mine, I don't have one.

NGUYEN: Neither do I.

HOLMES: Well we will talk about it when we come back.

(COMMERCIAL BREAK)

NGUYEN: Well as London police search for the people behind the car bombs, they will be turning to technology to find some clues. And CNN's Veronica de la Cruz joins us now from the dot com desk. You've been looking into this, and you found a lot of good information.

VERONICA DE LA CRUZ, CNN DOT COM DESK: We've been talking about those CCTV cameras a lot this morning. As you know, central London is blanketed with those security cameras. They were put in as a high tech response to the I.R.A. bombings of the past. The average person walking through London might show up on closed circuit TV hundreds of times in one day. Trafficland.com is one place to go to look at the numerous traffic cameras around the city. These static images refresh every minute or so. There's no doubt London investigators are pouring through the footage taken by these security cameras looking for the car bomb vehicles and the people who drove them.

The Web site lets you focus on any area of the city where there is a traffic cam. Let's take a look at some live images right now. This is Piccadilly Circus. And this is a shot of Trafalgar Square. Also, Hyde Park. These were some of the areas that we were looking at very closely yesterday. Also, we've been looking at some of the London newspapers online this morning. The "Times" caught our eye with this story. They say a 54-page warning about this kind of attack was issued by the government just recently.

We downloaded the document from the "Times" Web site, and CNN editors are looking through the document as we speak. You and I talked about this earlier. It seems to be more or less a warning to all the nightclubs and restaurants, just certain security measures to be on the lookout and to be vigilant. Another warning says to have an evacuation plan in place. We're going to continue to pour through this.

NGUYEN: Steps you need to take to make sure you're vigilant on the street and looking for suspicious car bombs, activities, and persons of interest, that kind of thing. OK.

DE LA CRUZ: And Trafficland.com is the place as well if you want to check out those traffic cams. Just in case you want to check out the traffic in your area as well, it's also a good Web site for that.

NGUYEN: A lot is going on, especially in this investigation. We'll stay on top of it. Thank you, Veronica.

T.J.

HOLMES: All right Betty, well you may not notice the ATM in the grocery store or the gas station anymore, but 40 years ago the introduction of a quick cash machine changed the banking industry forever. CNN's Jim Bolden reports.

(BEGIN VIDEO CLIP) JIM BOLDEN, CNN CORRESPONDENT (voice over): It was known as a mini bank 40 years ago. Some even dubbed it a robot cashier. The British Bank that installed the first one on June 27th, 1967, at this branch in north London just called it Barclay Cash. It is, of course, the ATM or cash machine, or as the British call it, the hole in the wall.

JEMMA SMITH, APACS: There's a phenomenal 5,000 pounds a second coming out of UK cash machines, and we're making 87 transactions a second because over two-thirds of all the cash we are now carrying around with us is actually from a cash machine.

BOLDEN: The inventor, John Shepherd- Barron, worked for money printer Delaroux. After a frustrating Saturday when he couldn't cash a check, he came up with the ATM while in the bath. He decided on a six-digit pass code and then passed the whole idea by his wife.

JOHN SHEPHERD-BARRON, INVENTOR OF THE ATM: My wife said she couldn't remember more than four, so I changed it down to four. And the word pin came from my wife's nickname Umpin, and it sort of matched up with personal identification number.

BOLDEN: There were no plastic cards then. People first had to buy vouchers from a teller when the bank was open. And as a sign of the times, the very first cash machine was indeed vandalized. That was a hint of what was to come. Theft of money soared despite endless warnings to watch your PIN and your card. Criminals even added false front and inserted cameras to get PIN codes. And some of the 9/11 hijackers were caught on an ATM camera the night before. But few would argue that this particular advancement has not been an improvement.

UNIDENTIFIED MALE: They're just like convenient. They're everywhere. There's even one now that dispenses euros.

UNIDENTIFIED FEMALE: I never go into the bank and draw money out. I always use the holes in the wall.

BOLDEN: From fewer than 800 ATMs at the end of the 1960s, Barclay says there are now 1.6 million around the world. Shepherd- Barron says his contribution to the modern world may be short-lived. He says we'll probably use another indispensable tool of the modern age to make cash transactions, the mobile phone.

Jim Bolden, CNN, London.

(END VIDEO CLIP)

NGUYEN: And you might want to watch what you eat. There is a warning this morning for fish lovers about a seafood ban.

Plus this.

GERRI WILLIS, CNN CORRESPONDENT: Coming up at 9:30 a.m. Eastern, rescue or rip off. We'll show you the tactics some companies are trying with foreclosure victims.

Then grilling season is in full swing. We'll show you the best grills and deals out there that won't bust your budget.

And the new iPhone, is it all talk? We'll take a look at what you get for the money. That's "Open House," the show that saves you money, 9:30 a.m. Eastern right here on CNN.

(COMMERCIAL BREAK)

NGUYEN: The FDA is throwing its net over Chinese fish imports, and the Chinese government is none too happy about it. It is protesting the FDA's decision to ban imports of some type of farm- raised seafood. Antibiotics and additives not approved by the FDA have been found in the fish, but this isn't a new problem. CNN's Kitty Pilgrim has much more on this.

(BEGIN VIDEO CLIP)

KITTY PILGRIM, CNN CORRESPONDENT (voice over): Chinese fish has been contaminated for years, since 2001, the FDA found banned toxins and drugs in Chinese imported fish. Finally, the FDA is officially banning five species of fish from China, catfish, shrimp, Basa, dace, and eel.

DAVID ACHESON, FOOD AND DRUG ADMIN.: This is a long-term problem that we've been monitoring for some time. We've reached the point where we now feel we need to broaden this import, holding import alert to countrywide with China.

PILGRIM: The FDA says China is the world's largest producer of farmed fish, accounting for 70 percent of world consumption. Because of the problems, the FDA has upped its problem from 1 percent to now 5 percent of Chinese farmed fish imports, saying the importer has to prove it's safe before any shipment can be released for sale. Some consumer watchdog groups say it's not just fish from China that should be screened.

ANDREA KAVANAUGH, PURE SALMON CAMPAIGN: I'm worried that the FDA is really only testing for a narrow band of chemicals and really just focusing on China, probably because of the problems over the last few months starting with pet food and melamine. But there are lots of other places that we import seafood from that need more scrutiny as well.

PILGRIM: Fish is generally not required to be labeled. So the consumer has to rely on the government to do its screening.

MIKE TAYLOR, FORMER FDA OFFICIAL: This is just another example of FDA having to react to problems to detect and correct problems rather than having a system in place to prevent problems. And we really need to transform the way we oversee imports to be preventive and not just rely on FDA inspectors catching problems and reacting to them.

PILGRIM: Until then, the consumer is left at risk.

Kitty Pilgrim, CNN.

(END VIDEO CLIP)

HOLMES: Shock and disbelief. That's how an Oklahoma trucker and his wife described their stroke of luck. If I'm counting those zeros correctly, that is a big stroke of luck. Up next, we'll be talking about their big win on this CNN Saturday Morning.

Also, London on alert. A bit of luck involved in this as well. Police link two cars found loaded with explosives. Now the search to find out who's responsible. Our coverage continues next hour with live reports.

(COMMERCIAL BREAK)

HOLMES: All right. Kodak is downsizing at their headquarters in Rochester, New York, this morning. Take a look at how they're doing it. They're doing it like this with a few explosions inside, which results in an implosion of the building. Listen to it. Just a second. I love this part.

UNIDENTIFIED MALE: Whoo! Boo-yah!

HOLMES: They love them some implosions over there in Rochester, don't they?

UNIDENTIFIED MALE: Eat that, you ancient critter!

NGUYEN: Eat that, you what?

HOLMES: We maybe should have edited that part out. It wasn't that bad. We have another implosion and more commentary from that gentleman tomorrow as scheduled at the Kodak Park tomorrow.

NGUYEN: Who is that guy? Can we get him on the phone? Boo-yah! Love that guy.

Well they're screaming at this place, no doubt. Talk about going ga-ga over a gadget. The first customers to get their hands on the new Apple iPhones were positively jubilant despite shelling out about $600, which caused some folks to cry. But now they just have to figure out how to work their new phones and whether they live up to all that hype.

Apple calls them the most user-friendly smart phones ever. We have already gotten several viewer e-mails, and they are not so happy about a few things. We're going to talk with one of the tech experts putting the new iPhone to the test. We're going to find out what are some of the glitches and it this truly does live up to all that hype. The editor of wirelessinfo.com joins us that is coming up in the 10:00 hour Eastern you want to stay tuned for that.

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