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U.K. Threat 'Critical'; One Terror Suspect Identified; Disaster in Coffeyville, Kansas

Aired July 02, 2007 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: The United Kingdom now in the midst of a terror threat rippling all the way to the United States. We're learning of new arrests, new leads, even new explosions.
DON LEMON, CNN ANCHOR: And all this after a fiery weekend attack in Scotland and the discovery of two car bombs in London.

Hello, everyone. I'm Don Lemon, live at the CNN world headquarters in Atlanta.

PHILLIPS: And I'm Kyra Phillips.

You're in the CNN NEWSROOM.

LEMON: We have a lot of new developments to get to.

Let's go straight to CNN's Alphonso Van Marsh. He's at the Royal Alexandra Hospital in Glasgow, Scotland -- Alphonso.

ALPHONSO VAN MARSH, CNN CORRESPONDENT: That's right, Don. Within the last hour, authorities here have lifted a safety cordon across the property here. Throughout most of the day we have seen bomb disposal teams. Why is that? We understand from sources that there has been a suspect vehicle on the property behind me.

Bomb disposal teams letting out two controlled detonations on this property. Again, as we mentioned, that's because we understand that there was a suspect car on the property. Now, for a number of hours, authorities had actually closed off the entrance to this hospital, allowing patients to come on in, but saying that they needed time to go over this property in their investigation.

Another development in this investigation, Don, authorities taking a look at the doctors' quarters on this property. The doctors' quarters, or accommodations, are where physicians can get a few hours of rest after a long night of surgery.

What's not clear at this time, Don, is how all of these different developments are connected. But what authorities are keen to let the public know is that the safety cordon has been lifted and that patients that needed treatment, they are able to come into this treatment.

One last thing to mention, one of these patients, according to authorities, is one of the two suspects in that Jeep Cherokee crash into the Glasgow International Airport. We understand from authorities that one of those suspects is behind me in this hospital. He is in critical condition. He is suffering from severe burns, and he, tonight, is under armed guard -- Don.

LEMON: CNN's Alphonso Van Marsh.

Thank you, Alphonso.

PHILLIPS: Now, as we mentioned, one of the U.K. terror suspects is identified as Dr. Mohammed Asha. He's said to have been a top medical student in Jordan.

CNN's Cal Perry is in Jordan and has been talking to Asha's family members. Straight in from Baghdad, landing there in Amman, he just connected with them -- Cal.

CAL PERRY, CNN CORRESPONDENT: Kyra, we're learning a lot more about Mohammed Asha, the 27-year-old doctor who grew up here in Amman, traveled to the U.K. with his young wife, gave birth to their son some two years ago in the U.K. I've had a chance to sit down with his brother, Ahmed. We talked for about 30 minutes.

He showed me pictures of his brother, some with him, his brother and Queen Noor. His brother was overly saying that he was an excellent student here, the top of his class, a neurosurgeon. That he writes from the U.K. all the time.

In fact, he was supposed to come visit his family here in Amman in mid-July. He sends letters and pictures, nothing to indicate that he would be the type of person to carry out such attacks.

In fact, his brother kept saying over and over again, this is impossible, there is no way my younger brother Mohammed could have done such things. He doesn't have time. He's at the top of his game as a neurosurgeon. That's why he went to the U.K..

He started a family there. He started a life there. And he constantly, he says, told them about how wonderful Great Britain was.

Now, the scene at the apartment was one of great despair. His family really hasn't heard any information either from the U.K. authorities or Jordanian governmental officials either in London or here.

Their biggest concern is about this young child, this 2-year-old son. Where is the child? They don't know. The brother, Ahmed, telling me that he plans to travel to the U.K. in the coming days if he does not hear anything, and he's glued literally to the television for any news about his brother's whereabouts, his wife's whereabouts, and their young 2-year-old son -- Kyra.

PHILLIPS: All right. Cal Perry, we look forward to seeing that interview. Thanks.

LEMON: The terror probe started in central London. Two potentially deadly car bombs turned up there on Friday.

For the latest on the investigation, let's go to Scotland Yard and CNN's Phil Black -- Phil.

PHIL BLACK, CNN CORRESPONDENT: Hello, Don.

Yes, some interesting information from sources to CNN regarding this investigation. Police are now following a theory that says the two people who slammed that vehicle into the terminal at Glasgow airport are the same people who placed the car bombs in London the day before.

Following that theory through, it means that police believe these two men drove from Glasgow, where they live, to London, placing those car bombs outside a nightclub near Trafalgar Square, where, fortunately, they failed to detonate. The men had then returned to Glasgow and mounted that apparent suicide attack against the airport facility.

Now, in that attack, one of those men has been severely injured. He suffered critical burns and is being treated at local hospital where, we understand, he worked as doctor.

Now, as you heard from Cal Perry there, he is not the only doctor implicated in this investigation. There is also Dr. Mohammed Asha. And sources have told CNN that police are, in fact, investigating the possibility that all the people in this group are linked somehow through the medical profession -- Don.

LEMON: Phil, do authorities there expect to make any other additional arrests in this? I know that they have been going from neighborhood to neighborhood. Do they expect any other arrests?

BLACK: Well, certainly as you've heard two more arrests today. Sources have told CNN that police believe they have arrested the majority of this group. The core of this group they believe to be responsible for these attempted attacks has been detained. Whether or not more people will be arrested remains to be seen.

Now, on the subject of the investigation, British parliament today was updated on its status by the British home secretary, Jacqui Smith. She spoke to them, strongly denouncing terrorism, explaining to them what she believes the British government is doing to combat it. And as I say, updating the investigation.

Let's hear a little more from her now.

(BEGIN VIDEO CLIP)

JACQUI SMITH, BRITISH HOME SECRETARY: Let's just be clear. Terrorists are criminals whose victims come from all walks of life, communities and religious backgrounds. Terrorists attack the values that are shared by all law-abiding citizens. As a government, as communities, as individuals, we need to insure that a message of the terrorists is rejected.

I very much welcome the strong messages of condemnation we've heard throughout the weekend from community leaders across the country. It is through our unity that the terrorists will eventually be defeated.

(END VIDEO CLIP)

BLACK: That is British Home Secretary Jacqui Smith there, just days into the job, much like new Prime Minister Gordon Brown himself. For he and his new cabinet, this has been a fiery baptism -- Don.

LEMON: To say the least. I mean, the man just took over and all of this is happening.

Phil Black at Scotland Yard.

Thank you, Phil.

They want to kill you, and they're willing to kill themselves to do it. What's going on in the mind of a suicide terrorist? Well, we'll talk to the man who literally wrote the book on it. That's straight ahead in the CNN NEWSROOM.

PHILLIPS: Some drama at Disney World overnight, where a crude explosive device went off in a trash container. It happened in a remote parking lot far from any attractions or shops. Authorities are trying to figure out who put it there and why.

(BEGIN VIDEO CLIP)

SHERIFF KEVIN BEARY, ORANGE COUNTY, FLORIDA: The sheriff's office has labeled this as a suspicious incident, and we are conducting a criminal investigation. We have recovered a very crude, homemade, low-level device. Because of the time and location of the event, we do not believe this incident was designed to cause significant property damage or injury.

We also believe this is an isolated incident. In fact, federal and state agencies have reviewed this incident and have put the Orange County Sheriff's Office as the lead investigative agency.

(END VIDEO CLIP)

PHILLIPS: Now, according to the sheriff, terrorism has pretty much been ruled out at this point. He says police are taking the incident seriously, but, "We've got nuts everywhere."

LEMON: A united front despite different viewpoints. That's what's coming out of the so-called lobster summit at the Bush family estate in Maine today.

The president and his Kremlin counterpart, Vladimir Putin, talked about nuclear security. They focused concern on Iran's suspected nuclear weapons program.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We spent a lot of time talking about the Iranian issue, and we both agree -- excuse me -- go ahead. We spent a lot of time talking about the Iranian issue. I am concerned about the Iranians' attempt to develop the technology, know- how, to develop a nuclear weapon.

The president shares that. I'm a little hesitant to put words in his mouth, but I think he shares that same concern. After all, this is an issue we've been talking about for about six years.

VLADIMIR PUTIN, RUSSIAN PRESIDENT (through translator): Recently, we're seeing some signals coming from Iran with regard to interaction, cooperation with the IAEA. Mr. Solana also brings us some very -- some positive data and information. I think all of this would contribute to further substantial intercourse on this issue.

(END VIDEO CLIP)

LEMON: Well, despite the outwardly friendly atmosphere, differences remain over a number of tricky diplomatic issues, including a missile defense system in Europe. Both men have conflicting ideas about where and how it should be deployed.

PHILLIPS: As the U.K. tries to sort out the latest terror threat, a former terrorist speaks out. Can his inside knowledge help the West fend off future attacks?

LEMON: Not just a mess, a potentially toxic mess. Oil, water and havoc in a Kansas town.

PHILLIPS: Controversial filmmaker Michael Moore back with his sick flick "Sicko". How do his claims about the U.S. health care system stack up with the facts? Our Dr. Sanjay Gupta does his own checkup.

You're watching CNN.

(COMMERCIAL BREAK)

LEMON: It is 13 past the hour. Three of the stories we're working on for you right here in the CNN NEWSROOM.

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PHILLIPS: Well, oil and water do not mix. Just ask the people of Coffeyville, Kansas. After weeks of rain, that small town has been overrun by floodwaters, and that includes the refinery.

CNN's Reggie Aqui is there.

(BEGIN VIDEOTAPE)

REGGIE AQUI, CNN CORRESPONDENT: Officials here in Coffeyville are telling their residents, don't even go anywhere near this water. You see, it's pretty much covering the east side of town right now. Not only is it deep, it's potentially a health risk.

Take a look down at this water and you'll see that there's sort of a film on top of it. And the officials here in the city are telling us that it could be because of the nearby refinery.

We're told that when the river overflowed and got to record levels, that it also flooded this refinery, and then they had some crude oil leak out of that refinery right into this water. Right now we don't know how much of that.

Take a look at some of the aerials of this town and you'll see just how bad this is on the east side of town. We're told that a quarter of the 11,000 population here in Coffeyville had to be evacuated. That was a mandatory evacuation. Some people didn't listen to it initially.

They had to make at least 50 rescues over the past couple of days. One involved a man who tried to swim to his house and got stuck. We're told he was apparently trying to save his pets, but that didn't work out very well.

He was apparently stuck for hours until the fire department saw him and finally rescued him on a boat. And apparently, he's doing OK.

But once this river finally gets back to normal levels and all this water that you see behind me is kind of pushed back, there's another big problem, and that is houses that are completely flooded. I spoke to the mayor. His house is back there, too, and he says everything is gone and that most residents here don't have any sort of flood insurance.

Reggie Aqui, CNN, Coffeyville, Kansas.

(WEATHER REPORT)

LEMON: Second quarter fundraising numbers, they are in for Senator John McCain. And we'll tell you what the dollar figure is and what kind of changes lie ahead.

We're going to hit up our Bill Schneider, our political analyst, to break down the numbers for us. It's coming up in the CNN NEWSROOM.

(COMMERCIAL BREAK)

LEMON: This just in to CNN moments ago, Senator John McCain's campaign fundraising results for second quarter. The Republican presidential contender is trailing top rivals in the money polls.

Let's talk about that, and what all this means, the money, the numbers and everything with our senior political analyst, Bill Schneider.

What does it mean? How much did he raise, and what does all this mean that he's trailing?

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, he raised $11.2 million in the second quarter. That's a disappointing total the McCain campaign just reported in a conference call, because he raised -- that's less than he raised in the first quarter. The first quarter, his total funds were $13 million, and that put him last among the six major candidates, three in each party. That was considered disappointing, $11.2 million is considered worse.

His campaign said that they had originally organized the campaign on the assumption that they would raise $100 million in the course of 2007. Clearly, they acknowledge they won't match that. So the result is, they're undertaking a significant restructuring of the campaign.

Fifty or more people will be let go. There will be cuts in every department. And senior aides will be subject to pay cuts. So, there will be a significant restructuring of the McCain campaign as a result of this poor -- relatively poor fundraising showing.

LEMON: OK. So, 50 people let go.

Senior aides taking -- then what -- and I hope I'm not asking you something you can't answer. Then what -- what did they do wrong if they said they wanted to raise $100 million? What might they be doing wrong to come up with only $11 million in the second quarter, behind what they raised in the first quarter?

SCHNEIDER: Well, I was on the call from the campaign. It was a conference call. They said it is a difficult fundraising environment this year, compared to the Democrats, who are out-raising the Republicans.

And second of all, the campaign manager made specific reference to the immigration issue, pointing out that McCain's -- as he described it -- principal stand on comprehensive immigration reform has caused him to raise less money from Republicans, many of whom disagreed with that stand and were very angry at McCain as a result of that. They said that has helped create this difficult fundraising environment for all Republicans generally and for McCain specifically because of his support for comprehensive immigration reform.

LEMON: OK, Bill. And real quickly, and I may be taking a leap here, when you have someone who's raising $58 million so far, $60 million, and these huge numbers, and you have someone like McCain, who's raising $11 million, at what point do you go, I can't compete?

SCHNEIDER: Well, that's what someone asked the McCain campaign last week, and he said, are you crazy? I'm not getting out of this race. I intend to compete. And on the phone call, they said they intend to compete, they intend to get the nomination, they intend to win.

How are they going to do it? They talked about the fact they're considering accepting public financing for the primaries, which would be the first major candidate to do that. And second of all, they said they're going to concentrate by taking the campaign to the early voting primary and caucus states -- Iowa, New Hampshire, South Carolina -- where they're going to make a very serious effort, and where, frankly, it doesn't cost that much money to run.

I looked at the polls in those early states. McCain is not leading in any of them. He's third or fourth in the polls in Iowa, Nevada and South Carolina. He comes closest in New Hampshire, a state he really has to win because he won it in 2000 when he was running against George Bush. Right now he's tied for second in New Hampshire. Mitt Romney, the former governor of neighboring Massachusetts, is in the lead in New Hampshire.

LEMON: All right. Made some news there. He'd be the first to accept financing, and he's considering it.

SCHNEIDER: He's considering it, yes.

LEMON: All right.

Thank you very much, Bill Schneider.

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(COMMERCIAL BREAK)

PHILLIPS: Hello everyone, I'm Kyra Phillips live at CNN world headquarters, in Atlanta.

LEMON: And I'm Don Lemon. Their bombs fizzled, the flaming jeep only killing one of their own, but clearly deadly intent was there.

PHILLIPS: The U.K. suspects didn't get it right this time. Is there any way to short circuit the next attempt? We'll ask a former terrorist. You're live in the CNN NEWSROOM.

LEMON: All of this has coming to light in just a few short days. CNN's Josh Lev takes us step by step through what authorities are calling a terrorist assault on Britain.

(BEGIN VIDEOTAPE)

JOSH LEV, CNN CORRESPONDENT (voice over): It began with this car parked outside a popular nightclub in London's Haymarket district. At about 1:30 in the morning on Friday, some people noticed smoke coming from the car. A bomb disposal team came and found it was filled with gas canisters, fuel and nails. Authorities said if it had detonated, the car could have killed a lot of people.

Then, Friday afternoon, a second car was checked. It had been parked in the same general area as the first car but in a place you're not allowed to park. So, it was towed here, where authorities say some people thought it smelled like gasoline.

A bomb squad was sent in and discovered it contained explosives similar to the first car. Police and security sources believed both cars were set up to be remotely triggered, but failed to detonate.

Saturday afternoon, an SUV packed with explosives, rammed into the terminal building area at Glasgow International Airport. Authorities said two men then jumped from the vehicle. Security sources say the same men are suspected of having parked the car bombs in London. Witnesses said one man fought with police and yelled Allah. The other set himself on fire at the airport. Authorities say one of the two is a doctor. No one was killed in the incident. One person suffered a leg injury.

The burned suspect was taken to this hospital in Glasgow, under heavy guard. Streets have been closed at times for controlled explosions near the hospital. Authorities have searched a rental house the two men are believed to have shared. And police have arrested others as part of the investigation as people in Glasgow and London try to go about their lives as normal.

Josh Lev, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: Dying to kill, it's a concept that most of us will never understand. What could possibly motivate someone to try to destroy as many innocent lives as possible, even if it means dying in the process?

Let's ask someone who has firsthand knowledge. Walid Shoebat is the author of "Why We Want to Kill You," and he's a former PLO terrorist. He joins us now live.

Walid, we've talked a number of times. And looking at this situation, right here, put us in the mind-set. Why would medical students, doctors, young men who seem to be a part of a caring society want to take this turn?

WALID SHOEBAT, FORMER PLO TERRORIST: Well, blood atonement is not divorced from the Islamist agenda. We must understand as westerners, that this is a blood atonement kind of an issue in which salvation is involved.

In the Islamist dogma, one can enter paradise by killing themselves in the process of killing others who are considered enemy combatants or noncombatants. It doesn't matter. In this transformation from the world, into the second world, into heaven, they will become intercessors for 70 members of their family.

In fact, my cousin on his mission, was killed and my family had a wedding celebration, a wedding festivity in which the entire community was supported. You would see the posters of the martyr all over the streets. You would see the Friday sermons talking about the current martyr who died in the cause of Allah. So, it is a salvation message that is given to the masses, to the teenagers, that you can enter paradise by fighting the enemy, which is the west, in this case.

PHILLIPS: Well, Walid, what is interesting is you -- well, you say fighting the enemy, fighting the westerners. This happened in the U.K. Was this just an easy place for them to come to from Jordan?

I mean, why didn't they go to the United States if there was such an anti-western message here? And also, it seems that these men were not disenfranchised. They had went to medical school. They were successful doctors. So, what was going on in their minds? It seems like they had everything in front of them.

SHOEBAT: Well, let's not forget in the United States of America, a doctor by the name Osama el Ibrahim killed a Jewish woman. So it is not only isolated in England, it happens here as well in America.

I don't agree that this is only isolated in England or in Europe. It happens here in the west as well.

It's gone beyond the issue of poverty, because we need to understand that this Islamist movement is not isolated towards poverty. They use poverty for their arguments. Islamic fundamentalism is a cult-like process that dominated the Middle East by the Muslim brotherhood when it was created in 1928, way before the establishment of Israel or the occupation in Iraq. It is the one organization basically that even put Anwar Sadat and Jamat Abdanasar (ph) into power in Egypt.

It is the organization of the Wahhabist Islamists in the same times that establish the Saudi government, which is very involved in this ideology as well. And the State Department and the United States government has not been able to recognize that Saudi Arabia plays a major role in this ideology. And even Hamas, or the godfather of al Qaeda, was a member of the Muslim brotherhood.

And these visiting leaders from Hamas have Islamic expos in the United Kingdom. Mr. Azzam Attimi (ph) from Hebron in Israel, he goes there and has Islamic expo in which indoctrinates masses of Muslims in England.

PHILLIPS: So, Walid, why did you stop? Why did you decide, OK, I no longer want to be a PLO terrorist? I'm going to stop planting bombs and killing innocent people?

SHOEBAT: Well, westerners think that the way to answer or respond to radical Islam is secularism. In fact, in every single event or person that I found who got out of the system, have adopted a Judeo-Christian ethic. Or Judeo-Christian standard of religion.

I converted to Christianity. So, you know, I converted to a different ideology of a blood atonement. I except the blood atonement of Christ in order to enter paradise.

So I, you know, the Middle East is a very religious culture. We think in the west that the whole Middle East is really after jobs or poverty issues. It is really this religious aspect that we need to address, not by responding to it via secular response. But also religious response as well. Everything should be open on the table in order for us to fight this war.

PHILLIPS: The fact that one of these suspects is an Iraqi doctor, what do you make of that? Does this show a connection between Iraqis coming into other countries and creating this type of terrorist activity? Do you think that we could see more of this?

SHOEBAT: Well, yes, we will continue to see more of this, but with the situation in Glasgow. Daren Barrett, who was a terrorist, who was basically a contact of Khalid Shaikh Mohammed (ph), who wanted to have terror acts in America itself, in Washington and New York, let's not forget, seven members of his group were sentenced just a week or two ago in England.

So it could be very well a response to the sentencing of the seven members of Daren Barrett (ph), who if you look at the operation itself it has very much the parallels of the same tactics of Daren Barrett. In fact, it is said that one of the members of friends of Daren Barrett was seen in the video camera where the cars were located. So it could be very well connected to that same group or same organization.

PHILLIPS: Well that's interesting, because some are saying -- some experts are saying that this is an amateur -- these were amateur acts, whereas you are saying there could be a significant link. Is that true?

SHOEBAT: Yes. But what westerners need to understand is that the recruitment apparatus does not come basically from al Qaeda into England per se, but the masses are being indoctrinated at the mosque level. So the recruitment becomes easy when people who want to get into these operations will end up contacting al Qaeda, well, not even contacting al Qaeda at all.

PHILLIPS: To be advised and for direction. Walid Shoebat, former PLO terrorist. It's always a pleasure to have you. Thank you.

SHOEBAT: Thank you.

LEMON: Summer, a time for cook outs, travel, and terrorism? Well summer may be the favorite season for terrorists, and that has U.S. officials on guard. CNN's Homeland Security Correspondent Jeanne Meserve has that story.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: U.S. officials emphasizing again today that they do not have any specific credible intelligence indicating an attack on the U.S. is imminent.

They say they are not seeing any spike in intelligence comparable to what was seen before 9/11. Although one official points out they wouldn't expect to see that because al Qaeda has changed its methods of operation.

Officials are far from complacent, however. They know that al Qaeda has made several recent statements indicating its intent to strike, and that summer is a particular concern, 9/11 came at the tail end of summer. Two years ago, in July, the London subway system was attacked. And last August, a plot to blow up airliners with liquid explosives was disrupted. MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: We have seen attacks over the past several years during the summer. We have seen an increase in the number of public statements, so we are mindful of all of this as kind of general background, and it is causing us to be extra vigilant going into the summer.

MESERVE: Security experts say, that in handbooks, al Qaeda has mentioned hitting in the summer. The experts point out that terrorists might believe it is easy to slip through security because it's a heavy travel season. They may believe it's a good time to attack because some law enforcement personnel are on vacation and the weather is more like to cooperate. Also, someone purchasing fertilizer or diesel, possible bomb components, would not be as likely to raise alarms in the summer.

For all these reasons, security has been increased around aviation and mass transit and all Americans are being asked to be vigilant, especially around large gatherings this holiday week.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

LEMON: You can find out more about these stories and Jean's story, the one that she just did, on our web site, CNN.com.

In fact, it's just gotten better. Now it has the most news video on the web. Check out the enhanced CNN.com. You'll find tons of great news, new features including free live video. All the video you want, all free. See it at CNN.com/video.

PHILLIPS: Lebanon is their preferred stomping ground, so why are Hezbollah militants now turning up in Iraq? CNN's Michael Ware connects some unsettling dots in a CNN exclusive. That's coming up next in the NEWSROOM.

LEMON: Also, filmmaker Michael Moore says the American health care system is broken. Is he right? Or is it a misdiagnosis? Our Dr. Sanjay Gupta checks the facts on the controversial movie when we come back.

(COMMERCIAL BREAK)

LEMON: U.S. forces in Iraq now carrying out the largest operation since the invasion. They may be facing a new enemy. CNN's Michael Ware has the exclusive report.

(BEGIN VIDEOTAPE)

MICHAEL WARE, CNN CORRESPONDENT: U.S. intelligence sources say they've captured one of Hezbollah's top special operations commanders, Ali Mussa Daqduq, said to be an expert with these roadside bombs. His role in Iraq was so covert there are no known pictures, save for this prison mug shot and a confession which coalition forces have not released. Captured on March 20 in the southern city of Basra, the Americans say he and the Iraqi militia commanders he trained and led, admitted working with Iran's elite Qods force special operations unit. Documents, forensic evidence and the personal effects of dead American soldiers seen by members of the Iraqi government and shown to CNN support their claims.

VOICE OF BRIG. GEN. KEVIN BERGNER, U.S. ARMY: He is Lebanese born and has served for the past 24 years in Lebanese Hezbollah. He was in Iraq working as a surrogate for Iranian Revolutionary Guards Corps, Qods force operatives, involved with special groups.

WARE: Senior U.S. intelligence officials say their confirmation of Hezbollah's long-rumored involvement in Iraq began with this.

The January 20 attack on American soldiers in Karbala. A well- planned attempt to kidnap five GIs that went horribly wrong, ending with the soldiers' execution.

Senior U.S. military officials tell CNN that after the attack, the order came to hunt down the men responsible and kill or capture them. That mission has been a stunning success.

A few weeks ago during a raid in Baghdad's Sadr City slum, American and Iraqi forces killed this man, Azar al Dulaimi, said to be the mastermind who led the Karbala attack. While Mehdi army militiamen mourned his death in this memorial in Sadr City, filmed by CNN, coalitions operations across the country had already seen most of those behind the kidnap attempt killed or imprisoned.

Early results in the U.S. investigation led to this man, Qais Khazali, seen here in 2003 when he was the spokesman for rebel cleric Muqtada al-Sadr's Mehdi army. Looking for Khazali, the coalition troops found more than even they had hoped. Computer documents detailing the planing, training and conduct of the failed kidnap. What they didn't know is they'd also scooped up Hezbollah's adviser to the Iraqi special groups, originally pretending to be deaf and mute, Daqduq's real identity was not revealed for weeks.

Contacted by CNN, a Hezbollah spokesman in Lebanon said he would not dignify the U.S. allegations with a response. And though representatives of Iraq's Mehdi army militia and cleric Muqtada al- Sadr say they share some of Hezbollah's ideals, they deny receiving any military aid.

The Iraqi government declined to comment, and though Tehran has repeatedly denied arming or aiding any militia forces in Iraq, Daqduq's arrest and the weight of Washington's new evidence of Hezbollah's presence in Iraq may just demand fresh answers from Iran.

Mark Ware, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, Michael Moore's new documentary on health care might make your blood pressure rise. We'll fact check some of the charges he makes in "Sicko."

(COMMERCIAL BREAK)

PHILLIPS: Well, his documentaries, always a source of controversy. Michael Moore's latest film, "Sicko," dissects America's health care system. And it opened earlier this month in New York. Moore talked about the film with CNN's Larry King.

(BEGIN VIDEO CLIP)

LARRY KING, HOST "LARRY KING LIVE": You do your documentaries so well that one is given to think, if I have the flu in New York, I ought to fly to Montreal.

MICHAEL MOORE, FILMMAKER: No, don't do that. Actually, the quality of our care here is -- is excellent.

KING: Excellent.

MOORE: It's very good. And we have some of the best doctors in the world. There's no doubt about that. The problem is that it's uneven. It's not for everyone. And it's those, like I said, those 47 million that don't have the health insurance, and that's the people that have health insurance and they think they're fully covered until they find out that they get a particular illness or whatever and the company goes, you know, we're not covering that one.

(END VIDEO CLIP)

PHILLIPS: Well, "Sicko" makes tough accusations about the state of American health care. But are they true? A fact check now from our Chief Medical Correspondent, Dr. Sanjay Gupta.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That's not on, right?

MOORE: No.

UNIDENTIFIED MALE: OK.

GUPTA (voice over): "Sicko" throws some hard punches at the United States health care system. And it seems just about everyone has something to say.

SARAH BERK, HEALTH CARE AMERICA: He plays fast and loose with the facts.

UNIDENTIFIED MALE: Michael Moore was spot on.

MOORE: The facts, I think, support what I believe.

GUPTA: And Moore presents a lot of facts throughout the movie. But do they all check out? Keeping them honest, we did some digging and we started with a biggie. The United States slipped to number 37 in the world's health care systems. It's true, 37 is the ranking, according to the World Health Organization's latest data on 191 countries. It's based on general health level, patient satisfaction, access, and how it's paid for.

France tops the list. Italy and Spain make it into the top ten. The United Kingdom is 18.

MOORE: Hello?

GUPTA: Moore brings a group of patients, including 9/11 workers to Cuba and marvels at their free treatment and quality of care. But hold on. That WHO list puts Cuba's health care system even lower than the United States, coming in at number 39.

Moore asserts that the American health care system spends $7,000 per person on health, whereas Cuba spends $25 per person. Not true, but not too far off. The United States spends $6,096 a year per person, versus $229 a year in Cuba.

An astronomically more money doesn't mean far better outcomes. In fact, Americans live just a little bit longer than Cubans on average. So, Americans do pay more, but the United States also ranks highest in patient satisfaction. And Americans have shorter wait times than everyone but Germans when seeking non-emergency elective procedures like hip replacement, cataract surgery or knee repair.

That's not something you'll see in "Sicko," as Americans tell their tales of lack of coverage and suffocating red tape. It's true. The United States is the only country in the western world without free universal access to health care.

But you won't find medical utopia elsewhere. The film is filled with content Canadians and Brits sitting in waiting rooms, confident care will come. But in Canada, you can be waiting for a long time. A survey of six industrialized nations found that only Canada was worse than the United States when it came to waiting for a doctor's appointment for a medical problem.

PAUL KECKLEY, DELOITTE HEALTHCARE ANALYST: That's the reality of those systems. There are quotas. There are planned wait times. The concept that care is free in France, in Canada, and Cuba, and it's not.

Those citizens pay for health services out of taxes. And as a proportion of their household income, it's a significant number.

GUPTA: It's true that the French pay higher taxes, and so does nearly every country ahead of the United States on that list. But even higher taxes don't give all the coverage everyone wants.

KECKLEY: Fifteen to 20 percent of the population will purchase services outside the system of care run by the government.

GUPTA: So, there's no perfect system anywhere. But no matter how much more fudged facts, and he did fudge some facts, there's one everyone agrees on -- the system here should be far better.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

PHILLIPS: And tonight on CNN after Isaiah Washington's first TV interview since he was let go from "Gray's Anatomy" after using an anti-gay slur, he's telling his side of the story to Larry. "Larry King Live" you don't want to miss, tonight, 9:00 p.m. eastern.

LEMON: A birthday bash fit for a princess.

WILLIAM, PRINCE OF WALES: This evening is about all that our mother loved in life. Her music, her dance, her charities and her family and friends.

LEMON: Remembering Diana nearly ten years after her tragic death. That's straight ahead in the CNN NEWSROOM.

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