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American Morning

Terror Watch: Troubling News From Pakistan; Breakthrough in Juvenile Diabetes; L.A. Archdiocese to Pay $660 Million

Aired July 16, 2007 - 08:00   ET

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

(BEGIN VIDEOTAPE)
JOHN ROBERTS, CNN ANCHOR (voice over): Terror threat. Al Qaeda supporters declare war on a critical U.S. ally overseas.

Plus, never-before-seen video of Osama bin Laden online.

STEPHEN HADLEY, NATIONAL SECURITY ADVISER: The threat from al Qaeda continues to be with us.

ROBERTS: The war on terror reloaded on this AMERICAN MORNING.

(END VIDEOTAPE)

ROBERTS: And good morning to you. Welcome back. Thanks very much for joining us.

It is Monday, the 16th of July.

I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry.

Some developments overnight in the war on terror. The Taliban once again taking on the government of Pakistan. Terror analysts are looking over the first tape as well of Osama bin Laden. This is the first of him appearing on a tape in a year.

We're also watching the worldwide terror threat with Nic Robertson in London, as well as Kelli Arena in Washington.

And we begin with Nic.

Some troubling news from Pakistan and the border with Afghanistan, believed to be a hideout for al Qaeda.

Hi, Nic.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Hi there, Kiran.

Well, the Taliban, who made a deal with President Musharraf of Pakistan late last year, said that deal is now off. This was a deal that said the Pakistani military would stay on their bases, that the Taliban wouldn't attack them, that the Taliban would self-police themselves, wouldn't cross the border into Afghanistan and attack U.S. troops. Well, they didn't uphold that part of the bargain, but now also they say they have broken the deal with President Musharraf.

They've been attacking his army and his policemen over the weekend. Almost 70 dead in three different attacks along the border region. A big threat for the Pakistani leader at this time -- Kiran.

CHETRY: All right, Nic. Thank you.

ROBERTS: The breakdown of peace in Pakistan is being watched very closely in Washington.

CNN's Kelli Arena is live for us in our D.C. bureau.

Kelli, do U.S. officials see this as a troubling development in Pakistan, or a potential opportunity here? Because they were never happy about that truce to begin with.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: That's right. Well, you know, John, they're concerned on two fronts.

First because they say that al Qaeda has been able to reconstitute itself in sort of that safe haven along the Pakistan- Afghan border. And they predict that if the U.S. is hit again, the attack is most likely going to be traced back to that region. And for that reason, as you said, John, many intel officials wanted President Musharraf to be more aggressive in dealing with those tribal areas. But that is what's got the diplomats now very worried.

They say that it is possible that this unrest in that area could cause a ripple effect throughout the country, and this is a country with nuclear weapons.

ROBERTS: Kelli, last Friday, we saw a leaked version of that national intelligence estimate. When do we expect the declassified version to come out and what is it going to say?

ARENA: Well, my guidance (ph) says that we expect it to come out tomorrow, John. And in essence, it says that al Qaeda has very nearly regained its full capability to attack the United States. And who needs to hear any more after that? But I'll give you some. A few other highlights.

Our sources say that it discusses the situation along the Pakistan-Afghan border, as expected. The concern that al Qaeda has actually increased its efforts to get operatives here in the United States. And it's also expected to discuss al Qaeda's continuing efforts to get its hands on weapons of mass destruction.

ROBERTS: So how does all this fit together? We hear Chertoff talk about it, we see this NIE. And at the same time, President Bush is trying to make the case that Iraq is very important because of the threat from al Qaeda.

ARENA: Well, you know, first of all, you know, as we've heard repeatedly, there is no credible or specific information that there is any attack that's imminent against the United States. But there is a great deal of concern within the intelligence community because of all these things put together.

I mean, how they see Iraq playing into this, John, is that they say, look, this is the perfect testing ground for al Qaeda. They get to try out new weapons, they get to train fighters there. For example, they've tested out using chlorine bombs in Iraq, and that may be used elsewhere.

So all of this together, very troubling. And that NIE, John, as you know, is meant to project one year to a year and a half out. So we're looking at a very troubled period.

ROBERTS: All right.

Kelli Arena for us this morning in Washington.

Kelli, thanks.

ARENA: You bet.

CHETRY: President Bush is not ready to follow Republicans who are looking to chart a new course in Iraq. That according to National Security Adviser Stephen Hadley. Senators Richard Lugar and John Warner want the administration to come up with contingency plans, including a possible withdrawal by the end of the year if reports out of Iraq do not show progress.

A strong 6.8-magnitude earthquake shakes northwestern Japan. At least five people are dead, 240 hurt. Roads buckled and some small buildings collapsed.

It happened off of Japan's coast about 10 miles below sea level. Shaking could be felt all the way to Tokyo, about 150 miles away. A small fire broke out at a nuclear power plant after the quake. It sent a plume of black smoke over the plant. They say there was no release of radiation.

And U.N. inspectors announced overnight confirmation that North Korea's nuclear reactor is indeed shut down. That paved the way for a shipment of oil. It left South Korea today for the north. North Korea will eventually get a million tons of oil in exchange for dismantling its nuclear programs -- John.

ROBERTS: Five minutes after the hour. Our AMERICAN MORNING team of correspondents working other stories new this morning.

It's merger Monday, and the Dow could be headed to 14,000.

Ali Velshi here to explain.

(STOCK MARKET REPORT)

(WEATHER REPORT)

ROBERTS: And there's a breakthrough in juvenile diabetes to report this morning. A genetic discovery that could help with the prevention of the disease. CNN Medical Correspondent Elizabeth Cohen is live from the CNN Center in Atlanta.

What have you got, Elizabeth?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: John, this discovery could potentially revolutionize the way that doctors treat diabetes. It's part of some other work that doctors have been doing.

This is the fifth gene that they found that's linked to Type 1 diabetes. That's the kind that usually people get when they're children, when they are very young. And doctors hope that what this will help them do is to test infants to see if they have diabetes.

That will let them intervene earlier than they usually do, and not with insulin, but hopefully with a better treatment, one that targets the genes specifically. So important, because kids with Type 1 diabetes have a higher risk of heart disease, stroke, blindness, kidney disease, so many different problems -- John.

ROBERTS: Good news.

Elizabeth Cohen, thanks very much -- Kiran.

CHETRY: The Catholic Archdiocese of Los Angeles and lawyers for hundreds of sex abuse victims will finalize a massive $660 million settlement this morning. Cardinal Roger Mahony would have been one of the first called to testify at the trial. It was supposed to start today. He spoke yesterday, apologizing to the 508 people who say that predatory priests abused them.

(BEGIN VIDEO CLIP)

CARDINAL ROGER MAHONY, LOS ANGELES ARCHDIOCESE: Once again, I apologize to anyone who has been offended, who has been abused in the Catholic Church by priests, by deacons, religious men and women, or lay people in the church. It should not have happened and should not ever happen again.

(END VIDEO CLIP)

CHETRY: So, will this be the end of the controversy?

Kara Finnstrom is live now in Los Angeles to bring us more details on what else we could hear today when it comes to details of this settlement.

Hi, Kara.

KARA FINNSTROM, CNN CORRESPONDENT: Hello.

We're at the courthouse, where a judge is expected to formalize this massive settlement later on today. We just heard a little bit of the apology that Cardinal Mahony offered to plaintiffs yesterday as he announced that settlement. Some of the plaintiffs now saying that that apology did not go far enough. They are telling us that they felt this settlement was largely a tactical move, as well as the apology. That it was timed so that the church would not have to face more embarrassment in court.

Now, yesterday, Roger Mahony was asked repeatedly whether he made mistakes in handling all of this. He said that at times he felt spiritually bottomed out, that he felt nothing he could do was right, and that he just kept trying to do the right thing.

A little earlier on this morning you heard from one of the plaintiff's attorneys, who said that really his answers just weren't enough.

(BEGIN VIDEO CLIP)

LARRY DRIVON, ATTORNEY FOR PLAINTIFF: He's apologized for what other priests did, for what religious did, et cetera, et cetera. But what he did was equally or perhaps even more wrong. The cover-up was the real big problem.

(END VIDEO CLIP)

FINNSTROM: Now, as part of the settlement, this will mean the release of documents that, up until now, have not been released. Mahony fought the release of some of the confidential records of these accused priests, and that could tell us a lot more about what the church knew when and how they acted on those accusations -- Kiran.

CHETRY: The other interesting questions going forth will be how this archdiocese goes on. They are paying out this $660 million, apparently looking to sell as many as 50 buildings to try to help come up with the money.

FINNSTROM: Yes, that cost, we're told, will also be split with some insurers and with some of the religious orders, specifically where those accused priests belonged. But it will be a huge price tag that the church, the archdiocese will have to deal with.

CHETRY: Kara Finnstrom reporting for us in Los Angeles this morning.

Thank you.

(NEWSBREAK)

(COMMERCIAL BREAK)

(NEWSBREAK)

ROBERTS: Two of the Senate's most respected Republican voices on foreign policy are proposing a new resolution for Iraq. Senators John Warner and Richard Lugar would require the president to present a new strategy by October.

Can they win enough support to get this passed?

Senator Jon Kyl is the chairman of the Senate Republican Conference. He joins me now from Capitol Hill.

Good morning to you, Senator Kyl.

SEN. JON KYL (R), ARIZONA: Thanks.

ROBERTS: What do you think of the Warner-Lugar proposal?

KYL: I'd like to wait until September, when Ambassador Crocker and General Petraeus come to give us their report. It kind of prejudges what the situation is going to be on the ground at that time. And frankly, with the surge having just really gotten under way in full force, the early returns are pretty good. And I'm fairly optimistic that when the report comes back in September, it's not going to be requiring a new strategy at that point, but rather a continuation of the success.

ROBERTS: Well, senators Warner and Lugar want to wait as well, but they don't want to start the progress after General Petraeus reports.

Here is what Senator Warner had to say about that on ABC's "This Week" yesterday.

(BEGIN VIDEO CLIP)

SEN. JOHN WARNER (R), VIRGINIA: We very respectfully call on the president to make proposals to the Congress next fall, such that on the anniversary, which is October, on that anniversary, we can, hopefully, come together in the Congress and revise that resolution, so that our forces fighting and the world can see there's clear support between the Congress and the president's mission as he is likely to modify it in the fall.

(END VIDEO CLIP)

ROBERTS: The bottom line here, Senator Kyl, is the president going to have to accept some sort of modification in his plan for Iraq?

KYL: Well, who knows? Let's wait and see what the September report shows.

Again, my good friend and colleague Senator Warner there was assuming that the president was going to have to propose a new plan. That's what he said. Maybe he will. Maybe he won't.

I don't like to assume a defeatist attitude here. The reports coming back from our troops are very good, and my colleagues John McCain and Lindsey Graham just got back and reported significant progress.

I think the great concern we all have is that the Iraqi government is not doing all of the things that it needs to do. But in terms of our military, they are performing their mission. And I'd rather not judge their mission a failure and start planning for so- called Plan B at this point. And you know, I'd really like to ask my friends who think we've already lost or that we can't win, what is their plan for dealing with the violence, the genocide, the terrorism and all of the conflict that will result if we do leave prematurely?

ROBERTS: You know, it's interesting that that is a question that comes up very on which in the questions that have been positive for the Democratic candidates in our YouTube debate.

But let me ask you this question. You are in the fortunate position of not having to run for reelection until the year 2012. What about these Republicans who are up for reelection in 2008, who are saying to President Bush, you're killing me here, throw me something that I can take to my constituents?

KYL: You know, leadership -- and frankly, elections are about leadership. I ran in a situation where my opponent had about $15 million of his own money to put into the race, and the war was not popular last November. But I stuck with the view that we had a mission to perform and we needed to complete that mission before we withdrew. And I was elected by almost 10 points.

I think if you know where you stand and you're able to articulate the reasons why, the evil of these terrorists -- and right now, al Qaeda is our main enemy in Iraq. If you're willing to articulate that, I think the American people, even if they're anxious about the situation and frustrated with the length of the war, are going to support you.

ROBERTS: OK.

Senator Kyl, let me change gears a little bit here. Where is Senator David Vitter? Is he coming back?

KYL: I do not know. He was not here last week. I mean, obviously, he'll be coming back. I just don't know when.

ROBERTS: Does he still have your support?

KYL: My support for what? The people of Louisiana decide whether he remains a senator. And as far as I know, he has no plans of resigning.

ROBERTS: Well, do you think that he should stay a senator? I mean, one of the considerations is that if he were to resign, the governor in Louisiana would appoint a Democrat and that would add to the...

KYL: That wouldn't be so good, would it?

ROBERTS: Well...

KYL: Right. That wouldn't be so good.

Frankly, I don't know what it is that he has apologized for. And until, you know, it's clear that there is some kind of crime that was committed that is of such a nature that he should resign, it seems to me that talk is a little premature.

ROBERTS: Senator Kyl from Arizona.

Thanks very much for joining us this morning.

KYL: You're very welcome, John.

ROBERTS: Good to see you, sir.

KYL: You bet.

(NEWSBREAK)

(COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING.

It was a once-in-a-lifetime offer. A generous donor saying, I will give a free college education to all 112 sixth graders who are going to school in inner city Philadelphia. These kids, their prospects for a bright future were not that great until this one man stepped in.

That was 20 years ago. So what happened to them? Well, keep watching and find out.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: I feel old.

UNIDENTIFIED MALE: It's been 20 years.

CHETRY (voice over): Three friends recall a hot June day back in 1987, when an announcement was made at their sixth grade graduation from Belmont Elementary School in Philadelphia.

UNIDENTIFIED FEMALE: And that we will guarantee all of the youngsters here on this stage a college education. We will pay for every bit of it.

JALINA EVANS, BELMONT 112 ALUM: I didn't really know the magnitude of it until after my dad sat me down and explained to me that I have this gift.

CHETRY: George Weiss, a University of Pennsylvania graduate and money manager, founded Say Yes to Education, the program behind the scholarship.

(on camera): What were your ideals at the time?

GEORGE WEISS, FOUNDER, "SAY YES TO EDUCATION": I think my expectations were a little mismanaged in that I expected all of my kids to get all A's and all go to Penn.

CHETRY (voice over): The 112 students were given all of the tools imaginable -- tutors, after-school programs, field trips, including meeting the first President George Bush.

ALLEN ALEXANDER, BELMONT 112 ALUM: It just gave me an opportunity to say, hey, the world is bigger than West Philadelphia.

CHETRY: But that wasn't enough for many of the Belmont 112. They were unable to rise above the reality of life in the inner city, dealing with problems like teen pregnancy, drugs and jail.

Dale Mezzacappa covered the story for the past 20 years for "The Philadelphia Inquirer".

DALE MEZZACAPPA, REPORTER: These were just ordinary kids. And I think throughout, some of them felt that it wasn't fair that they were scrutinized so much.

CHETRY: And George himself wasn't prepared for the tragedy that would befall some of the kids that he considered his own children. Seven were murdered and one killed in a car crash.

WEISS: This one young man who I have a picture on my desk here, Walter Brown, and he was a phenomenal young man. It just rips you apart.

CHETRY: Weiss' unbending believe in the Belmont 112 left indelible impression on the students.

ALEXANDER: I don't know if he knew what he was getting into, but once he touched us, he couldn't let go.

CHETRY: In fact, he paid constant visits to their West Philadelphia neighborhood. He set up a 1-800 number so they could call any time. And that phone still rings today.

Twenty of them eventually earned a bachelor's degree, including Allen Alexander, who today works in social service. Jalina Evans received a degree in film and media arts. And Damian Caldwell (ph) is among 14 students who attended vocational school. Today he's a sound engineer, as well as a pastor.

UNIDENTIFIED FEMALE (SINGING): Belmont, oh Belmont...

UNIDENTIFIED MALE (SINGING): Belmont, go forward brave and bold

UNIDENTIFIED FEMALE (SINGING): ... go forward brave and bold.

CHETRY: But the students say they ultimately gained much more than an education.

ALEXANDER: Many of us remain friends over the years. And as adults, have really had to lean on those relationships.

CHETRY: The Belmont 112 recently had a reunion celebrating their achievements and, of course, George Weiss.

WEISS: I really feel I'm the benefactor. I think I've been given a huge award, and I think anybody that's been associated with these kids has really become better human beings.

(END VIDEOTAPE)

CHETRY: Well, there you have it.

George, by the way, said he learned some lessons from that first group of kids. They tweaked it and they've continued to provide these educations for thousands upon thousands of other children.

ROBERTS: Hey, everything is always a learning process, but the fact that these kids at least get the opportunity that they wouldn't have, it's just a terrific story.

CHETRY: That's right. And he says -- I mean, he views them as his children. He has a 1-800 number, and they still call and keep tabs on one another as well.

So, really -- I mean, there are a lot of people that analyze whether or not this was a true success story or not, but hearing from George and hearing from these kids who just have such a much better life and many more opportunities, you really can't deny that it was a success.

ROBERTS: You've got to think if it even changed one person's life, it would be a success.

Great story.

(NEWSBREAK)

(COMMERCIAL BREAK)

CHETRY: Wow. That's a beautiful shot this morning. It's still dark.

ROBERTS: It is.

CHETRY: In San Francisco. That's a shot coming to us from KGO. What is that? The airport? I think it's the airport.

ROBERTS: It looks sort of like the airport. Yes, there you go. It's 57 degrees right now, and temperature is only going to up to 62 degrees today and cloudy. So, not a very nice day to go looking for your heart in San Francisco.

CHETRY: No. You got to wait until October when it warms up and gets summery.

ROBERTS: Welcome back to AMERICAN MORNING. It is Monday, the 16th of July. I'm John Roberts.

CHETRY: And, I'm Kiran Chetry. New this morning, the Catholic Archdiocese of Los Angeles, as well as lawyers for hundreds of sex abuse victims go to court today finalizing a landmark $660 million settlement. Cardinal Roger Mahony also apologized to the people who were abused by predatory priests he also apologized to those in the community.

(BEGIN VIDEO CLIP)

CARDINAL ROGER MAHONY, L.A. ARCHDIOCESE: Once again, I apologize to anyone who has been offended, who has been abused in the Catholic church by priests, by deacons, religious men and women, or lay people in the church. It should not have happened and should not ever happen again.

(END VIDEO CLIP)

CHETRY: Earlier on AMERICAN MORNING, we spoke with one of the plaintiffs lawyers who said that one of the things he was hoping to hear and didn't hear from the Cardinal Mahony was an apology from himself for any wrongdoing he may have done. Let's listen.

(BEGIN VIDEO CLIP)

LARRY DRIVON, ATTORNEY FOR PLAINTIFF: He's apologized for what other priests did, for what religious (ph) did, et cetera, et cetera. But what he did was equally or perhaps even more wrong. The cover-up was the real big problem.

(END VIDEO CLIP)

CHETRY: $660 million settlement is four times bigger than the one that was negotiated for the Boston Archdiocese.

ROBERTS: A strong earthquake in Japan overnight. New video to show you of Japan's Prime Minister Shinzo Abe touring the damage. The quake measured 6.8 and struck off of the coast of the northwestern part of the country. At least five are dead and 240 others injured. Minor shaking was felt in Tokyo 150 miles away.

CHETRY: In the first tape in more than a year now from Osama bin Laden, adding to concern about a terror attack in the U.S. He delivers a very short message about martyrdom, the growing strength of al Qaeda and also how to protect the country; will be spelled out in a new national intelligence estimate that is due out tomorrow.

Also new this morning, Joint Chiefs Chairman, Peter Pace arriving in Iraq just a short time ago. And our CNN Barbara Starr is traveling with the general, and tells us that he is there to meet with commanders on the ground. They're going to be discussing three possible options for the future which includes maintaining the troop buildup, adding more troops if the President orders it, or bringing some troops home.

ROBERTS: U.N. inspectors announced overnight that North Korea's nuclear reactor at Pyongyang is shut down, and a shipment of oil left South Korea today for the north. North Korea will eventually get one million tons of oil in exchange for dismantling its nuclear programs.

CHETRY: Later today President Bush is expected to once again push his plan for a Palestinian state. At the same time the state department is warning all Americans to leave the Gaza Strip. We're going to get the latest now from our State Department Correspondent Zain Verjee live in Washington. Some of the specifics about what the President is expected to talk about today Zain?

Well, Kiran, the U.S. National Security Adviser Stephen Hadley says President Bush is basically going to repeat his commitment to a Palestinian state, living peacefully alongside Israel. He is also expected to talk about U.S. financial and diplomatic support for the embattled Palestinian President Mahmoud Abbas, and tell Palestinians they have a choice.

(BEGIN VIDEO CLIP)

STEPHEN HADLEY, NATIONAL SECURITY ADVISER: To show the Palestinian people a choice between the kind of violence and chaos under Hamas in Gaza and the prospect under President Abbas and Prime Minister Fayyad for an effective Democratic Palestinian state.

(END VIDEO CLIP)

VERJEE: The U.S. diplomatic strategy has been essentially to strengthen Abbas, try and get him the public support that he needs and the credibility he needs to be in a position to negotiate with Israel. The U.S. has been trying to isolate Hamas. As you know, it's been designated a terrorist group by the U.S. and is now in control of Gaza. Kiran?

CHETRY: So, what is the warning going out to Americans in Gaza, Zain?

VERJEE: Well, the State Department Kiran, is telling Americans to defer travel to the West Bank and to avoid travel to Gaza at all costs. It says, "American citizens in the Gaza Strip should depart immediately... (This) applies to all Americans including journalists and aid workers."

The travel warning goes on to say, that if you're going to be in the West Bank just be careful when you get to Israeli checkpoints. It's also warning of terror threats to U.S. interests telling Americans just be careful of buildings or restaurants associated with the U.S. And also, just overall, be vigilant when you're going to cafes, malls, restaurants, train stations, clubs, things like that. Kiran?

CHETRY: Zain Verjee live for us in Washington, thanks.

ROBERTS: An exploding garage tops your quick hits now. A man in Centerville, Virginia set his house on fire while apparently trying to make fireworks in his garage. The garage was gutted, but the house didn't appear to be badly damaged.

A cold look at global warming. Lewis Pugh swam at the North Pole to call attention to global warming. There he is diving in. Pugh has done several swims in cold water, but says this one at 29 degrees was his coldest ever. He swam for a whole kilometer, a little more than half a mile at an area where the polar ice has melted. He said every stroke was just killing him. CHETRY: Took him 18 minutes. I can't believe he didn't get hypothermia. Twenty-nine degrees.

ROBERTS: I'm amazed he didn't do it in about 18 seconds.

CHETRY: Probably would have if he could.

ROBERTS: I'd be swimming pretty quickly. And, it started with a family barbecue turned into a violent armed robbery and ended with a group hug? Up next you'll meet the people whose offering of food and wine disarmed a dangerous robber, in a matter of speaking. AMERICAN MORNING is coming right back.

(COMMERCIAL BREAK)

ROBERTS: The closing of a legendary Las Vegas casino tops your quick hits. The new frontier is due to be torn down in September to make room for a $5 billion -- yes, that's with a B, $5 billion, 3500- room replica of New York's Plaza Hotel, which would make it worth a lot more than the real thing.

Religious toys are going mainstream. Wal-Mart says they are seeing an interest in faith-based toys, so next month they're going to start carrying a line of them. They're based on biblical tales like Daniel and the Lion's Den. They're going for about $7 a piece.

And, Harry Potter mania is hitting the mail in England. British officials just unveiled these five new Harry Potter stamps. They feature the various crests of Harry's magical school Hogwarts.

CHETRY: Well, everyone is still talking about this one it was the dinner party broken up by a would be robber. It ended in wine and cheese for the suspect and a group hug for all. We go for the scene of the crime right now it's in Washington, D.C. And joining us is Michael Rabdau, Kate Rooney, they're daughter and Khyber, and with us is Xavier Cervera.

Hi there, good morning to all of you this morning.

MULTIPLE SPEAKERS: Good morning.

CHETRY: You're back at the scene of the crime. It was the backyard of Xavier's house where this happened. Kate, so you guys are all enjoying yourselves in the backyard, and what happened?

KATE ROONEY, DAUGHTER HELD AT GUNPOINT: He came in behind my daughter, nudged her on the shoulder, she turned around, she thought -- she should be answering this. But, anyway, he went to Khyber with the gun, asked for money. She didn't have any. And, then came between my husband and I. And, he was standing about this close to me and I looked -- he asked for money or he would shoot.

Then I looked down and he had the gun towards my dear friend, and at that time, I said, please don't point the gun at her, point it at me. We don't have any money. We came to visit our friend, and we don't live here. He settled down some. A few minutes later, he put the gun in his pocket right here.

And I think it's truly because we all felt such love for one another, we didn't want to endanger one another, and that we all remained so calm and wise and careful.

CHETRY: Wow, and Khyber, tell me, what was going through your head when this guy came over and pointed a gun at you?

KHYBER ROONEY-RABDAU: I was pretty scared. I was like thinking of what is going to happen, if we're going to like die or something.

CHETRY: Xavier, you were walking the dog at this exact time. But, when you were able to come back and find out what happened, whose idea was it in the first place to offer this would-be attacker wine and cheese?

ROONEY: Cha Cha (ph).

XAVIER CERVERA: It was my understanding when I got back that it was one of my sisters -- made the initial offering of the wine and the cheese too to try to calm the guy down.

CHETRY: And so, Kate did he sit there and talk with you, make small talk and --?

ROONEY: He did not sit, and -- I'm sorry.

CHETRY: Go ahead.

ROONEY: He tucked his gun away. He said that you all are drinking wine and Cha Cha got up and said, yes would you like some? And so, she got up and poured him a glass of wine. He asked for -- he took a couple sips, asked for a hug.

Cha Cha and I hugged him for each -- from one side to the other. And then he asked for another hug, and then I asked his name. And then, my daughter and I went inside the house and called 911.

CHETRY: Wow. I mean it just certainly sounds so bizarre -- Baba ending. I mean, thank goodness a good one. No one got hurt. Their still looking for him now. What would you like to see happen to this would be attacker?

ROONEY: Well, I was very concerned when he said that he went to the wrong house that he was going somewhere else afterwards. And that is why we got on the phone right away before he left to try to get the police here. To prevent anyone else being put in this position.

I feel for him. He wasn't -- you know, he may be, but not that much, because he did calm down. And he did feel the love that we all had for one another. And, I truly believe that had a lot to do with it. And we were not aggressive. Not at all.

CHETRY: So you think it was your calm demeanor that ended up carrying the day there and getting him to put the gun away.

ROONEY: I do. I know it was. I know it was, because he came in like a shark.

CHETRY: Wow. What an experience to live through. Certainly one to tell the kids about. Including you, Khyber. I'm glad everybody's OK. Thanks for being with us guys.

ROONEY: Thank you.

ROBERTS: It's extraordinary that they can laugh about this.

CHETRY: They all seem so calm about it. But she did say that he then tucked the gun away actually as they gave him hug after hug. I mean, wow.

ROBERTS: Anybody who has ever been robbed at gunpoint, or had a gun pointed at them knows how dramatic an experience it is. So, for them to be able to sit here a couple of days later and chuckle about it, that's extraordinary.

CNN NEWSROOM is just minutes away. Tony Harris at the CNN Center now, with a look at what's ahead. Morning to you Tony.

TONY HARRIS, CNN ANCHOR: Hey, John. Good morning to you. Iraq on the newsroom rundown this morning. Ghastly scene, dozens of deaths, 170 wounded. When a car and truck blow up in Kirkuk. Church abuse settlement. The L.A. Archdiocese formalizing a $660 million payout in court today. And, some incredible pictures from Japan. A strong earthquake brings down buildings and severs roads. There are fatalities.

Heidi Collins is with me in the newsroom. We are keeping you up- to-the minute on any breaking news top of the hour just minutes away right here on CNN. John, back to you.

ROBERTS: We will see you then. Just now -- 14 minutes and 40 seconds away. See you soon, Tony.

HARRIS: All right, now.

CHETRY: A unique proposal toping our quick hits now. A man with the help of a scuba diver proposed to his girlfriend. The diver held up the sign. There you see it. Then the guy on the outside of the tank opened up the box and asked his now fiancee, his girlfriend at the time, would she marry him.

This happened at Discovery Kingdom in California. She said yes, by the way. So chock that up for unique proposal, one to tell your girlfriends about. Congratulations to the two of you.

Well, two new additions to a popular zoo in Miami. A baby squirrel monkey born late last week at Jungle Island Park. And the park also saw the birth of six new pink flamingo chicks. Word is all babies are doing just fine. They start of gray and then they turn pink. Some people say it's from eating a lot of shrimp, but I'm not sure.

New Orleans awash in a crime wave, it's killing more young people every week. Coming up we're going to take a look at the impact through the eyes of one of our children of the storm. A hurricane survivor now hoping to survive the streets next on AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING. The threat of a volcanic eruption in Indonesia was lowered by one notch this morning, and thousands of evacuees are coming back home. The threat level had reached critical last week on the remote island 1500 miles east of Jakarta.

Climate change could mean hurricanes in the Mediterranean. Scientists say if the water keeps getting warmer as they expect it will, hurricanes could form in Mediterranean resorts. We'll have to begin preparing shelters and evacuation routes.

And, a big investment in disaster planning in New Orleans. The federal government giving the city's international airport $50,000 to hire consultants and to rewrite emergency plans all of it aimed to keeping the airport up and running in the event of another catastrophe like Hurricane Katrina. John?

ROBERTS: New Orleans, speaking of Katrina is facing a crisis in crime. One-hundred and two murders this year, making it the deadliest city in America. Now, the violence has even touched the life of one of our children of the storm. CNN's Soledad O'Brien and director spike lee gave cameras to 11 students and asked them to record their post-Katrina lives. Here's their latest chapter.

(BEGIN VIDEOTAPE)

SOLEDAD O'BRIEN, CNN CORRESPONDENT (voice-over): Deshaun Dabney has big dreams.

(on camera): You want to be on Broadway. You want to be a star.

DESHAUN DABNEY, O. PERRY WALKER H.S.: Yes, I do.

O'BRIEN: Sing something beautiful.

(SINGING)

O'BRIEN (voice-over): He also has big fears.

DABNEY: I was scared to take out the trash because I was scared of being hit by a stray bullet or being caught in some kind of craziness that was already going on.

O'BRIEN: It was four months after we gave him the camera, Memorial Day weekend, and Deshaun was on his way to work. A parade was about to start nearby.

DABNEY: My next door neighbor was like, do you know the boy that got killed? And I was like, somebody got killed?

O'BRIEN: It turns out Deshaun did know him, 17-year-old Anthony Plaseed (ph).

DABNEY: I grew up with him, as you know. But just give me like your feeling behind the whole thing, how do you feel about what happened and the violence in the city?

UNIDENTIFIED MALE: My little boy came to me -- Ma, Anthony is dead. I said, no he's not. Anthony is sitting inside. He said, "Ma, I'm telling you, ma, I saw him, ma.

O'BRIEN (on camera): In an instant, Anthony Plaseed went from high school senior with a whole life ahead of him to a corpse with a number, 74. He was the 74th person killed in the city this year. His body was found right here, just a few hundred feet away from Deshaun's front door.

DABNEY: It was just something to see something like that. A 17- year-old laying in a casket when he had the potentials of -- he never got to live up to be the best that he could be. He never got a chance to go to college, view the world, get married and have kids.

I don't want to be dead at 15, when I have a whole life to live. I have dreams. I want to be this huge entertainer. I want to sell millions of records. I want to win a Grammy. I want to win an Oscar. And there's no way I can do that if I'm dead.

O'BRIEN (voice-over): Soledad O'Brien, CNN, New Orleans.

(END VIDEOTAPE)

ROBERTS: Anthony's Plaseed's murder remains unsolved.

If you want to see more on Deshaun and the other children of the storm, watch Soledad O'Brien's hour-long special. It airs at 8:00 p.m. on August 29th. That's the second anniversary of Hurricane Katrina.

And tonight, Anderson Cooper is live from New Orleans.

Here's Anderson with a look now at what they're working on -- Anderson.

ANDERSON COOPER, CNN ANCHOR: Tonight on "360," Mayor Nagin, he promised to make crime fighting his top priority, but murder in New Orleans is skyrocketing, and the justice system collapsing. The good of people New Orleans want answers. We're live in Nola keeping him honest. "360" tonight, 10:00 p.m. Eastern.

ROBERTS: All right, we'll see you, Anderson, tonight.

Here is a quick look at what CNN NEWSROOM is working on for the top of the hour.

TONY HARRIS, CNN ANCHOR: See these stories in the CNN NEWSROOM: $660 million -- the Los Angeles archdiocese formalizing a settlement today with clergy abuse victims.

Twin bombings in Iraq. More than five dozen dead in Kirkuk.

Earthquake. Japan hit hard today.

Gas prices, the national average back above $3 a gallon.

Tear gas tourists. Young Americans protesting alongside Palestinians.

NEWSROOM, just minutes away at the top of the hour on CNN.

(COMMERCIAL BREAK)

CHETRY: Well, it promises to be a presidential debate like none we've ever seen before. All of the questions come from you. Thanks to YouTube. Tonight John and I will be hosting a one-hour special previewing the YouTube debate.

ROBERTS: And to give you a preview of the preview, we asked CNN's Tom Foreman to get things starting for us. Every night he brings politics to life for "AC360's" Raw Politics. He joins us now from an Internet cafe in Washington, the nation's capital.

Good morning to you, Tom.

What have you been finding there?

TOM FOREMAN, CNN CORRESPONDENT: Good morning. Well, this is the pre, pregame. And many people here -- this is Washington; people are up on their politics here. They've been flowing in and out here talking over the issues in the morning as they always do. And you're right, Kiran. This is unlike any other kind of debate, because this is where the really interesting questions always come around in the debate, when you open it up to the public.

Come on over this way. We're going to chat with a few of the folks here at Tryst (ph) this morning and find out what it is that they're thinking about politically.

Hello! As I walk up to as if i've never met you before.

Let me ask you now, as the debate is coming up -- first of all, political season started too early, too late?

What's your name, by the way?

UNIDENTIFIED FEMALE: Kimberly.

FOREMAN: Kimberly.

Political season, too early, too late for you? What do you think?

UNIDENTIFIED FEMALE: I think it's inevitable to start at the time that they started at, because it's just -- especially just with what's going on in the country right now. I think everybody is trying to get their two cents in, I think FOREMAN: What's your two cents? What would you like to ask if you could talk to any of the candidates right now?

UNIDENTIFIED FEMALE: I'd like to ask them what their thoughts on -- with the possibility of having to be a runningmate. I know that that's going to have to happen and...

FOREMAN: Really? You want to see who might be a vice presidential candidate?

UNIDENTIFIED FEMALE: Yes.

FOREMAN: Wow, that's interesting. That's interesting.

What about you? What's your name?

UNIDENTIFIED MALE: My name's Adam.

I'm interested to know sort of after Michael Moore's "Sicko" and in terms of the healthcare situation in this country a lot of the Democratic candidates are proposing some sort of universal health care, and I'm curious to know how they're actually going to finance their proposals.

FOREMAN: Excellent. And what about you? What's your name?

UNIDENTIFIED MALE: I'm Josh.

FOREMAN: And, Josh, what would you like to know about?

UNIDENTIFIED MALE: I'd like to hear, given the new national dialogue on climate change, I'd like to hear more specifically about energy independence and how they're going to finance all these new proposals that are being floated.

FOREMAN: Excellent. Well, thank you all, some excellent questions here.

And that's what we're looking for from you with the YouTube debate. Put your questions on your computer. Send them to us, and this is your chance really to get involved in this process. And remember, it's only a nation of 300 million. If you don't help out, you know, who will?

John, Kiran?

ROBERTS: All right, thanks very much, Tom, and we will see you tomorrow here in New York to talk more about this.

You know I was scanning...

FOREMAN: I'll be there.

ROBERTS: All right, we'll see you then. I was scanning some of these questions yesterday. There were 817. This morning's there's like 1,050. They are just coming in over the (INAUDIBLE). But join us tonight in primetime, 8:00 Eastern.

CHETRY: And we'll be looking at the questions submitted on YouTube for the debate so far. We'll also ask, what makes a good question. The YouTube debate countdown, it's tonight, 8:00 p.m. Eastern, right here on CNN.

ROBERTS: Thanks so much for joining us on this AMERICAN MORNING. We will see you again tomorrow.

CHETRY: Meantime CNN NEWSROOM with Tony Harris and Heidi Collins starts right now.

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