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No Prison For Libby; Two More Arrested; Crash Test: How Safe Are You?

Aired July 03, 2007 - 10:00   ET

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

TONY HARRIS, CNN ANCHOR: On this latest information of two additional arrests.
BETTY NGUYEN, CNN ANCHOR: In the meantime, good morning, everybody. I'm Betty Nguyen, in for Heidi Collins today.

HARRIS: And I'm Tony Harris. Stay informed all day in the CNN NEWSROOM. Here's what's on the rundown.

A new development. The government deploying viper teams on subways in major U.S. cities. The move days after the U.K. terror plot.

NGUYEN: Who's outraged, who is just overjoyed? The vice president's one-time chief of staff will not go to prison for perjury.

HARRIS: Just driving along minding her own business, then, boom, her world comes crashing in.

It is Tuesday, July 3rd, and you are in the CNN NEWSROOM.

Beefing up security on the home front. Some new developments to tell you about. Folks taking mass transit to fireworks and other July 4th festivities may see some extra security. CNN has learned the TSA is deploys its VIPR squads on transit systems in six cities. The teams include dogs, air marshals, inspectors, and sometimes enhanced technology. They're being deployed in Washington, Boston, New York, Houston, Los Angeles and Philadelphia.

This is said to be in response to the elevated security concern and because of all the extra people expected to take transit for the holiday. Our Jeanne Meserve reports there is no credible threat and no links between events in the U.K. and the plans here at home.

NGUYEN: There is praise and there is also some outrage. A sharp, political divide today over President Bush's commutation of Lewis Scooter Libby's prison sentence. No pardon, but no time behind bars for Vice President Cheney's former chief of staff. CNN's Kathleen Koch is in Washington.

And, Kathleen, as people are starting to get more word on the decisions that were made, why the president decided to do this, what are you hearing from the Bush camp?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, Betty, pretty much from the president's own statement, he says he carefully weighed both sides, but that it came down to this at the end of a two-page statement saying, "I respect the jury's verdict. But I have concluded that the prison sentence given to Mr. Libby is excessive." That sentence being two and a half years.

Now the reaction, not surprisingly, came very swiftly and it was very partisan. No surprise. The Democrats blasted the president's decision to commute Lewis Scooter Libby's sentence, while the very few Republicans who spoke out were largely supportive.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: What we saw today was elevating cronyism over the rule of law. And what we saw today was further evidence that this administration has no regard whatsoever for what needs to be held sacred.

REP. DUNCAN HUNTER, (R) PRESIDENTIAL CANDIDATE: The president took away the 30 months in prison, left a quarter of a million dollar fine. I haven't read the transcript of the court action, which I think is necessary for any president to make that decision. But having said that, since the president did it, I think it's a reasonable determination to make, because Scooter Libby was not charged with this disclosure.

(END VIDEO CLIP)

KOCH: Now, this disclosure, being the 2003 revelation of the name of CIA Operative Valerie Plame. There's a lot of talk right now about whether or not President Bush will pay a political price for this move to commute Libby's sentence. Right now, with the president's approval rating hovering between the upper 20s, the low 30s, depending upon which poll you look at, many believe that the president really didn't have much to lose. He was also facing very tough pressure for conservatives to make sure Libby did not spend any time behind bars. So many see this as the president both solidifying his base and rewarding a loyal aide.

Betty.

NGUYEN: Yes, the president saying that the sentence was just excessive. But let me ask you about the vice president. Did he play any role whatsoever in this?

KOCH: Betty, right now the White House is not saying anything about who had any part in this decision-making process. Spokesman Tony Fratto, who I talked with just a few minutes ago, saying, we're not going into that.

Now Vice President Dick Cheney's office did yesterday release a short statement saying that he supports the president's decision. But nothing other than that. Though certainly Libby and the vice president were close friends. Libby was the vice president's chief of staff starting in 2001. The two men even sometimes carpooled to work together. And the vice president made it no secret that he believed that Libby's conviction was a, "great tragedy." So it would certainly, Betty, come as no surprise that the vice president had a hand in this decision, but we may never know for certain.

NGUYEN: All right. CNN's Kathleen Koch joining us live from Washington today.

And we do want to let our viewers know that a White House briefing will likely, you think, focus on President Bush's decision to commute Libby's sentence. I'm sure there will be plenty of questions on that matter. So you want to stay tuned for live coverage. That is at 10:30 Eastern right here on CNN.

HARRIS: Days after the failed car bombings in London and Scotland, the international investigation expands. Here's the very latest developments. A security alert now in place at London's Heathrow Airport. Police there say a suspicions bag has triggered secondary searches of departing passengers. They stressed the move is precautionary, but will cause some flight delays.

We're also awaiting Gordon Brown's first address to parliament as the British prime minister. He speaks to the House of Commons at the bottom of the hour. If he discusses the terror plot, we will bring it to you live, those comments.

Earlier today, a bomb disposal team destroyed a suspicious car parked outside a mosque in Glasgow, Scotland. That is the city where two men lost a failed car bombing at the airport. The probe now expands to Australia where an eighth person is now in custody. The 27-year-old Indian national was detained at the airport as he waited for a flight out of the country. The British media reports he is a medical doctor.

In fact, several of the suspects are said to be doctors. Experts say that may signal a disturbing trend. They say Islamic extremists may now be recruiting more educated radicals to plot and carry out attacks.

In addition, word just in of two new terror related arrests. Let's get the latest developments on the investigation. CNN's Alphonso van Marsh is in Glasgow.

And, Alphonso, what can you tell us, what have you learned about these latest arrest?

ALPHONSO VAN MARSH, CNN CORRESPONDENT: Well, we understand from the British Press Association that authorities have indeed detained two people in the Blackburn area. That is in the northwestern part of the country. Police careful to say that it is too early at this point to know if those arrests are linked with the ongoing investigation. Just one of the many developments, Tony, in this increasingly international story.

As you mentioned just a few moments ago, an arrest as well in Australia. Authorities taking one Indian national as he waited for a flight out of the country at Brisbane Airport. Again, a lot going on over the last 24-48 hours.

We want to bring you up-to-date to what's going on here behind me, the Royal Alexandra Hospital. Over there, just over my shoulder, in the tree area, behind those trees, bomb squads were here yesterday taking controlled detonations on a suspect vehicle. And, of course, we were wondering if that is related, if at all, to, as you mentioned just a few moments ago, another controlled detonation on the south side of Glasgow. There was a special vehicle early this morning. Bomb detonation teams put a controlled -- I should say a controlled detonation on a suspect vehicle. They are key to point out that no explosives were found and the investigation continues.

So let's just wrap up just a bit, Tony. Of the eight suspects that we know authorities say are linked in this ongoing investigation, what we know is two were arrested just over my shoulder here behind those trees, a 25-year-old and a 28-year-old that were living at the hospital's doctors' accommodations. We also know, as you referred to, that Jeep Cherokee crash at Glasgow International Airport, that fiery, fiery crash. Well, one of the suspects that was in that vehicle, we understand, is over my shoulder. He is in a hospital bed. He is in critical condition. Critical, serious burns over 90 percent of his body. And, Tony, as we understand it, he's under armed guard.

HARRIS: CNN's Alphonso van Marsh for us this morning.

Alphonso, thank you.

NGUYEN: Well, flood waters, they are running high in the Midwest this morning. You have to look at these pictures. A major disaster has been declared in Kansas. You see why right there. Seventeen counties eligible for federal funds. One Kansas congressman says he's heard at least 1,000 homes are lost. Fresh drinking water, well that is being trucked in to some areas.

And look at this. You see that brown stuff there?

HARRIS: Yes, that's not good.

NGUYEN: Yes, that's not just dark water. It's oil. That oil that flooded the waters in Coffeyville, Kansas. It spilled from a refinery and it's now moving down river towards Oklahoma and could actually pollute drinking water sources.

HARRIS: And as I take a peek behind Chad Myers there, I still see some shower activity there.

NGUYEN: Yes, it's not over, is it?

HARRIS: Yes, it's not over.

(WEATHER REPORT)

NGUYEN: Well, professional wrestler Chris Benoit's personal doctor has been indicted. Dr. Phil Astin facing seven charges of improperly dispensing pain killers and other drugs. His attorney says none of the charges is related to Benoit's case, though investigators say Astin prescribed large amounts of anabolic steroids for Benoit,. A 10-month supply every three to four weeks. So add that up. Police say Benoit killed himself and his family last month. It's unknown if steroids played any part. The U.S. attorney says the investigation is ongoing and more charges could be filed.

HARRIS: Her voice a national treasure. Today, opera fans are mourning the death of Beverly Sills. The internationally renowned diva has died at the age of 78. Although she didn't smoke, Sills was diagnosed with lung cancer just weeks ago. She was born in Brooklyn. Bubbles. It was her nickname, bubbles. She helped put Americans on the international map of opera stars, singing at such famed venues as the Royal Opera in London.

NGUYEN: Well, we want to talk now about the British terror probe, because it is expanding all the way to Australia. Another doctors taken into custody. This one with a one-way airline ticket in hand.

HARRIS: No prison time for Scooter Libby. It is stirring a lot of debate in Washington. We will hear from former officials from both the Bush and Clinton administrations.

NGUYEN: And Iran's involvement in Iraq. There is new information from the U.S. military, claims of Iranian reward money for the killing of American troops.

HARRIS: SUVs, pickups, and minivans put to the test. How safe are you and your family in a wreck?

(COMMERCIAL BREAK)

HARRIS: President Bush's decision to commute Scooter Libby's sentence drawing praise and some outrage today. With us from Washington, Ron Christie, former special assistant to both President Bush and Vice President Cheney, and Lanny Davis, former special council to President Clinton.

Gentlemen, good to see you both.

RON CHRISTIE, FMR. SPECIAL ASST. TO PRESIDENT BUSH: Good morning.

LANNY DAVIS, FORMER CLINTON SPECIAL COUNSEL: Nice to see you.

HARRIS: Hey, Ron, let me start with you. Surprised at all by the president's decision to commute the prison time?

CHRISTIE: I'm not. The president has long said that he wanted to wait for Mr. Libby's case to have gone through the appeals process. Yesterday we found out that the District of Columbia Court of Appeals denied Libby's bid to stay out of jail pending appeal. And the president of the United States decided that this sentence was excessive and that Mr. Libby shouldn't have gone to jail. So, no, it doesn't surprise me.

HARRIS: Well, Ron, the process isn't over. Libby says he still wants to continue along the appeals process. So why did the president . . .

CHRISTIE: As he should.

Well, again, this keeps him out of jail pending appeal. The probation office had recommended a more lenient sentence, had recommended perhaps home confinement or probation. The judge, again, decided to sentence Scooter Libby for 30 months, which was far in excess of the crime that he had been charged for. So again, Mr. Libby is going to try to fight to clear his good name.

HARRIS: Hey, Lanny, what do you think, 30 months was excessive according to the president, but it is certainly firmly within the federal guidelines for a conviction of this kind.

DAVIS: It's pretty ironic that an administration that has criticized judges for not imposing higher level of sentences within the federal guidelines now wants to ignore them. President Bush has a right to do this decision. He did not pardon Mr. Libby. In fact, I think he's basically promised never to pardon Mr. Libby. His statement says the consequences of his felony conviction -- and it was a felony conviction for obstruction of justice and lying to a grand jury -- he said, the president, "the consequences for that conviction on his former life as a lawyer, a public servant and private citizen will be long-lasting."

I take that as a commitment by President Bush to never pardon Mr. Libby, and let's see what the appellate courts say. The irony is yesterday it was Judge Sentel (ph) who denied the effort to stay the sentence. Judge Sentel being the conservative judge who appointed Ken Starr. So this is not exactly a liberal-stacked deck against Mr. Libby.

HARRIS: Ron, why do you say that? Why did the president, a handful perhaps of commutations, pardon in his administration, why this one?

CHRISTIE: I think this is a very important case. This was a case that had been referred from the CIA. And, of course, that referral had been leaked subsequently when it went to the Justice Department. The Justice Department impaneled a special counsel, Patrick Fitzgerald, who, of course, knew that the underlying crime, whether the name of Valerie Plame had improperly been disclosed, he already knew that Deputy Secretary of State Richard Armitage was the one who was responsible for revealing that information to columnist Robert Novak. If, in fact, a crime had been committed, Mr. Fitzgerald would have actually charged Mr. Armitage (ph) with a crime because it is a crime to knowingly unveil the name of a covert operative. Mr. Fitzgerald knew that there was no underlying crime. He knew that there was no underlying conspiracy. And he played a little perjury trap, played a little, let's see if we can get Scooter for something. And I think Lanny . . .

HARRIS: You just have to tell the truth, though, don't you?

CHRISTIE: Of course you have to tell the truth.

HARRIS: OK.

CHRISTIE: But again, this is a case where Mr. Libby had a certain recollection of facts, Mr. Ari Fleischer, the White House former press secretary, had gone on the stand and thought that he, in fact, had told Walter Pinkus (ph), the identity -- or, excuse me, Mr. Pinkus had said that Fleischer had told the identity of Miss Plame to him and it was a he said/he said case.

HARRIS: But, Ron, you understand that most of the folks who actually were in the courtroom, who watched this unfold are of the same opinion that, you know, the jury kind of got it right on this? Not kind of, did get it right on this.

CHRISTIE: Well, again, to answer your question, Tony, I am a lawyer and I respect the rule of law and I respect the jury process. But again, this was a case where, again, right after the initial verdicts had been read, the jurors had said that they had been a little bit confused by the jury instructions that they had ahead.

Oh, Lanny, you can laugh. But again, this is a tale of two Washingtons.

HARRIS: Well, talk to one another.

Lanny, what do you want to say here..

DAVIS: Let me -- my laugh, excuse me, was not disrespectful, but the talking points are a little out of control here. A jury . . .

CHRISTIE: Oh, I don't use -- you must be looking at your talking points. Lanny, I don't use talking points, thank you very much.

DAVIS: I didn't interrupt you, Ron. It was hard not to, but I didn't. So let me finish.

A jury convicted Mr. Libby of obstruction of justice and perjury before a grand jury. Far from criticizing Mr. Fitzgerald, the president yesterday said Mr. Fitzgerald is a highly qualified professional prosecutor who carried out his responsibilities. So rather than changing the topic, I do agree that there's some sympathy that Mr. Libby deserves.

It's a felony. He lied to a grand jury and committed obstruction of justice. But the man who directed him to do so has still refused to tell the truth to the American people, which is Vice President Cheney. And that's why I am sympathetic to Mr. Libby taking the fall for the man who hides behind, in darkness, never telling the truth, never telling us what happened. All we know is he put Mr. Libby up to doing this and has yet to tell the truth.

CHRISTIE: And, Lanny, I hate to interrupt you, Lanny, but you're a lawyer. So do you know beyond a reasonable doubt, do you have the facts that the vice president, in fact, directed Libby to this? This is more of the Democratic talking points that there's some ultra conspiracy . . .

DAVIS: The answer is, yes.

CHRISTIE: Mr. Fitzgerald actually decided to look to see whether there was a conspiracy. Found none.

To go back to my commentary about a tale (ph) . . .

DAVIS: You asked me and question and then provided your own answer. But the answer is, yes. The facts that came out in trial is that Mr. Cheney did, in fact, instruct Mr. Libby to divulge classified information. That's an undisputed fact. He did have notes on a column written by Ambassador Wilson -- that's an undisputed fact -- saying that they ought to get out and try to dispute what Mr. Wilson wrote.

CHRISTIE: Actually what I says . . .

DAVIS: And that he was fully are, undisputably aware of what Mr. Libby was doing. Those are three, undisputed facts. And if you disagree, why won't Mr. Cheney speak, call a press conference, answer questions, be transparent? Are you against Mr. Cheney finally telling the truth (INAUDIBLE)?

CHRISTIE: Actually, Lanny, that is not in dispute. I agree with you. It does not dispute that the vice president did, in fact, have notes pertaining to Mr. Wilson. If you want to turn it to Mr. Wilson, you're talking about an individual who the Senate Intelligence Committee found lied about the way in which he was send over to Niger.

DAVIS: That's actually a false statement.

CHRISTIE: Oh, Lanny, you know that that is absolutely . . .

DAVIS: There's not a slightest shred of truth to the false statement you just made about Ambassador Wilson lying. That is a false statement.

CHRISTIE: Lanny, Lanny, Lanny that is not a false statement. It is, in fact . . .

HARRIS: Now here's the problem. Wilson -- Lanny, give me just a second. Lanny, give me a second. Ron, give me half a second here.

Let me just bring it back to -- in the real world, outside of the Washington beltway, Libby goes on trial in this wonderful system that we all applaud. He is found guilty. In the real world, there are consequences for that. In the real world, it looks today as though, you know what, Scooter Libby has great friends in high places. How do you -- and because of that, he is not going to spend a day in jail.

Ron, how do you get past that perception that -- how do you get past that?

CHRISTIE: I get past that by the sense that Mr. Libby is going to be forever punished and forever tarnished by what happened in that hearing room. Not only does he have to pay a $250,000 fine, he's still on probation, he's now a convicted felon, he will lose his ability to practice law, which was his livelihood. Mr. Libby will forever be hurt by this. So to suggest that he is getting off or somehow not getting punished is not an accurate statement.

DAVIS: Well, I agree with that. And maybe we can end with some agreement.

HARRIS: Yes. Yes.

DAVIS: If we take the president at his word, and I read the quote, Mr. Bush has promised not to pardon Mr. Libby. That he has to hold the consequences of committing perjury and obstruction. I did feel concerned about the level of the sentence, even though it was within the sentencing guidelines. I think it is Vice President Cheney's personal and political responsibility to put aside legal and tell the truth and not let Mr. Libby hang out there.

HARRIS: And let's leave it right there.

Lanny Davis, great to see you.

Ron Christie, great to see you as well.

CHRISTIE: Thanks, gentlemen. Good to be with you.

DAVIS: Thank you.

NGUYEN: That was a good conversation right there.

Well, let's talk about this, a dream come true. One hundred and five years old getting the wish of a lifetime. We'll meet one of America's newest citizens.

GREG HUNTER, CNN CORRESPONDENT: Which car seats protect you best in an SUV, pickup truck or minivan? This guy is going to tell us when NEWSROOM continues.

(COMMERCIAL BREAK)

NGUYEN: So as you hit the road for the holiday, how safe is your minivan or your SUV? Consumer reporter Greg Hunter is in Ruckersville, Virginia, and he has new crash test results.

And these are some pretty amazing finds, Greg.

GREG HUNTER, CNN CORRESPONDENT: They are, because most seats tested marginal or poor. But let me show the anatomy of a good testing seat. This one's stripped down so you can see. When you get in a rear end collision, your body pushes back like this. And look at the head restraint. It actually comes forward to meet your neck. This reduces the amount of whiplash. And one of the technologies they're using to save your neck.

(BEGIN VIDEOTAPE)

HUNTER (voice over): It's a wreck you often don't see coming. In a rear end collision, if neck injuries are to be minimized, the seat and head restraint need to take the blow. Take the high rated 2007 Mercedes M Class, where the headrest pops out to meet the back of the head. To test head protection, the Insurance Institute for Highway Safety has been simulating rear end crashes with just a seat and a dummy.

DAVID ZUBY, SR. VP. VEHICLE RESEARCH, IIHS: Because without something behind and near the back of your head, your head is going to flop around as the rest of the body moves forward in a rear impact crash.

HUNTER: These tests were on SUVs, pickups and minivans, which account for more than half of new vehicle sales.

ZUBY: Over 60 percent of the vehicles had a marginal or poor rating. But we're seeing a lot more goods, a lot more acceptables than we did when we started this testing two years ago.

HUNTER: According to the institute, seats offer different levels of protection, even seats from the same company. The Honda Element on top was given the highest mark. The body stays inline with the neck, as opposed to the Honda Odyssey, where the head can whip back, rated marginal. Among the lowest rated, the Hummer H3. GM, which makes Hummer said, it "designs its head restraints to meet a variety of driver sizes, rather than focusing on a single set of metrics."

Nissan's Quest minivan was also rated poor. Nissan told CNN, it designs its "product to provide a high level of occupant safety in a wide range of real-world crashes, including rear-impact collisions."

The institute says some manufacturers, like Ford, are improving the designs of poorly rated models, like the F150. Ford told CNN, "we have always designed seats and head restraints for the safest possible scenario in the real world."

Among the highest rated, the Hyundai Santa Fe, Toyota Tundra and the Ford Edge.

ZUBY: You are more likely to need the protection of a good head restraint and seat than you are the protection of a front air bag. Not that we wouldn't recommend having cars with good air bags, but you're more likely to be in a rear end collision where whiplash is a risk than you are a serious front crash where the air bag will deploy.

(END VIDEOTAPE)

HUNTER: So there you have it, 60 percent of the SUV, pickup trucks and minivans that were tested at the Insurance Institute for Highway Safety, marginal or poor. So you're probably asking yourselves, is there anything I can do to kind of help myself out? Yes, there is. No matter how well your vehicle tests in terms of head restraints, here's what you do.

This is a common problem that people have. They have the head restraint all the way down. Look at the way the back of the head is. The back of the head can actually roll over the top and whiplash in a rear end collision. So this is what you do. The technician here say may sure that the head restraint lines up with the center of the back of the head. They even have an x marked here so when they do this test that they have this thing lined up properly.

So this is the best way to get the most out of your head rest, your head restraint and your seat that works together and actually cups you into a crash. Now you can get the complete test results on cnn.com. So log on and get them. There's 87 vehicles they tested.

Back to you guys.

NGUYEN: Yes, you know what's so remarkable about it too, Greg, is just something as simple as that, moving the head rest into the right position can really save you a lot of pain when it comes to those crashes.

HUNTER: The best way to get the most out of your seat, no matter how it performs.

NGUYEN: All right, Greg Hunter, joining us from Ruckersville, Virginia today with that good information. Thank you.

And what a day it is here in the CNN NEWSROOM.

Good morning, everybody. We have things popping all over the place.

I'm Betty Nguyen in for Heidi Collins.

HARRIS: And good morning, everyone. I'm Tony Harris.

(BUSINESS HEADLINES)

HARRIS: We also have this developing story for you. Just days after Britain's terror scare, the U.S. government dispatching VIPER teams to guard mass transit. We'll take you live right to Penn Station, right here in the NEWSROOM.

(COMMERCIAL BREAK)

(NEWSBREAK)

HARRIS: Coffeyville, Kansas, gets a double whammy, a flood combines with an oil spill to coat the town in a slimy goo.

(COMMERCIAL BREAK)

NGUYEN: All right. This just into CNN, take a look, you see the smoke right there in this live picture. Well, if you look between those two trees to the left of your screen, you can see what's left of the tail of a small plane that has crashed in Carlsbad, California. We understand that four people have been killed in this crash. We want to take you on the phone now to CNN's to Kathleen Koch who joins us with the latest information on this crash that we are just hearing about.

Kathleen, what do you know? KATHLEEN KOCH, CNN CORRESPONDENT: Betty, I just got off the phone with Laura Brown, who's a spokesperson for the Federal Aviation Administration. She says that this is a small plane, as you can see there, a Beech 9-11. That it left Palomar (ph), California this morning under (INAUDIBLE) instrument flight around, and this was sometime around 6:00 a.m. that it departed. It was on its way to Tucson, Arizona when it crashed in a golf course west of the airport there in Carlsbad, California.

Laura Brown could not tell me whether or not -- whether there were any unusual weather conditions in the area. As you can see with the shot we have there, the skies look pretty clear. She didn't say whether or not the pilot had communicated to the tower. She also could not confirm the number of dead. I'm assuming that's coming from authorities on the ground, but we're working to get more information on that.

NGUYEN: Yes, and so are we on this end as well. So it was headed to Tucson, Arizona around 6:00 a.m. this morning as it left from California and crashed into a golf course. And we're seeing what is left of that plane. Obviously the smoke still coming from it. And I understand, Kathleen, that surrounding streets in the area and traffic, all of that has been closed off because of this crash?

KOCH: And yes, Betty, that would be standard practice. Obviously local authorities there -- you can see the smoke rising up -- perhaps doing their best to put on the any fire on board, and if there's fuel on the small aircraft, obviously wanting to avoid any explosion or any injury to anyone in the area. And also collecting evidence, any pieces of the plane, any debris that might have fallen. They wouldn't want that to go astray.

NGUYEN: Well, that evidence is going to be key, too, Kathleen, because still we have not heard whether there was a mayday put out by the pilot. We don't know what causes this plane to go down, but of course an investigation is under way. Our Kathleen Koch joining us live by phone with the latest in this crash in Carlsbad, California

HARRIS: A terror plot in Great Britain, new concerns ripple across London and Glasgow, as the investigation extends halfway around the world.

(COMMERCIAL BREAK)

HARRIS: Iran's elite Qods force training attackers in Iraq. You saw the story first on CNN.

Now our Michael Ware reports Iran's involvement may go much higher up the chain of command.

(BEGIN VIDEOTAPE)

MICHAEL WARE, CNN CORRESPONDENT (voice-over): These American soldiers might not know it, but they have a bounty on their heads, according to U.S. military intelligence. A senior U.S. military official tells CNN Iran's Qods force is offering reward money to Iraqi militia who kill G.I.s. The Qods force is an elite unit of Iran's Revolutionary Guard.

U.S. officials are unwilling or unable to offer details of the bounty claims, but with Iranian-made bombs tearing into American armor, and plots to kidnap coalition soldiers unfolding, the threat is being taken seriously.

Much clearer, say U.S. officials, is Iran's chain of command. They insist Iran's supreme leader, Ayatollah Ali Khomeni, and other senior Iranians know the Qods force is involved in killing coalition soldiers.

(on camera): When you say senior leadership in Tehran is aware of the Qods forces' activity, are you talking about Supreme Leader Ayatollah Khomeni?

BRIG. GEN. KEVIN BERGNER, MULTINATIONAL FORCE, IRAQ SPOKESMAN: I'll leave it at senior leadership in Iran.

WARE: Put it this way, do you think it's possible he doesn't know?

BERGNER: That would be hard to imagine.

WARE: And the Qods appear to have help. CNN broke the story that this man, a Lebanese Hezbollah special operations commander, was arrested inside Iraq by U.S. forces in march. His name, Ali Mussah Daqduq (ph). U.S. officials say he was working with Iranian-backed militia known as the "special groups." The U.S. military says that interrogation of Daqduq and the Iraqis he trained, as well as documents found with them, have provided the most striking evidence yet linking the Qods force to violence in Iraq.

BERGNER: He was directed by Iranian Qods force to make trips in and out of Iraq and report on the training and operations of the Iraqi special groups.

WARE: The U.S. military says Daqduq and the Qods force helped plan an attempt to kidnap five American soldiers in Karbala on January 20th that ended with their killings. That the Qods funded the special groups militia in Iraq with up to $3 million a month, and that the Qods ran three training camps near Tehran, to prepare Iraqi militia recruits for operations against coalition forces. American officials say they have videotaped confessions as well as electronic intelligence meaning intercepted communication or satellite imagery to corroborate these allegations.

None of this impresses this former consultant to Iran's nuclear negotiating team.

KAVEH AFRASIABI, FMR. CONSULTANT TO IRAN: This latest allegation Iran by the U.S. military has the potential to derail future U.S./Iran dialogue and Iraq security. Tehran has flatly rejected these allegations against it, and may reevaluate or reassess its express willingness for further talks with the U.S. on Iraq's security.

WARE: The U.S. governments may not have much enthusiasm for such talks anyway.

SEAN MCCORMACK, STATE DEPT. CORRESPONDENT: They say that they want to play a more helpful role in Iraq, that they want to help stabilize Iraq. Well, these kinds of activities serve exactly the opposite purpose.

WARE: The role that Iran wants to play in Iraq might not be one America decides it can live with.

Michael Ware, CNN, Baghdad.

(END VIDEOTAPE)

NGUYEN: Well, drivers beware, because when this guy's on the road, oh, that is going to cause some problems. An escaped con who couldn't steer straight. We're going to show you how this wild ride ends.

HARRIS: And Bart Simpson's sage advice, don't have a cow, man. This local reporter keeps her cool and her modesty. The curious calf. Fifteen minutes of fame coming up.

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NGUYEN: Get you more on the story just into CNN. You can see it right there, the smoke that is still coming from that plane there that is crashed in Carlsbad, California. You see the tail end of that that plane just moments ago. Firefighters on the scene.

What we know so far is that four people have died in this plane crash. It's not known exactly what caused it, but the plane is a Beech 9-L. It left California around 6:00 a.m. local time, headed to Tucson, Arizona, and then crashed into a golf course, where it sits right now, smoke still coming from it.

And of course, when we get more information on anything that would lead to why this plane went down, we'll bring it straight to you.

HARRIS: And we are standing by. We believe that the daily White House briefing is about to begin. We may be inside the two-minute warning, or something to that effect. When that begins, we're going to sort of monitor the situation, because frankly we're interested mostly in whatever the Q&A is about the decision yesterday to commute the time of former White House chief of -- make that that Vice President's Chief of Staff Lewis Scooter Libby. You see White House spokesman Tony Snow there. So we'll just sort of monitor the situation and bring you a bit of flavor of the Q&A that is to come this morning in the NEWSROOM.

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