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Dow Tries for 14,000; Senate All-Nighter On Iraq; Lunsford Addresses Couey; Edwards On Poverty; Moscow Responds

Aired July 17, 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: The python's got to eat.
HEIDI COLLINS, CNN ANCHOR: Yes.

HARRIS: Well, police believe the python was originally someone's pet that was let loose. Well, that was wrong. The snake will have a new home in a zoo or wildlife park.

COLLINS: Good morning, everybody. I'm Heidi Collins.

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

Al Qaeda retooling and rebuilding. A new terror forecast goes public this hour and we get an inside look at al Qaeda's base on the Afghan border.

COLLINS: Senator's sex scandal. Louisiana Republican David Vitter heads back to work and tries to move past an embarrassing chapter.

HARRIS: Little girl lost. The child killer face-to-face with a grieving father today in a Florida courtroom. It is Tuesday, July 17th, and you are in the CNN NEWSROOM.

COLLINS: Teetering on the edge. That's the Dow Jones Industrial average today as we wait and watch to break 14,000. Susan Lisovicz is there now watching the big board with us.

And, Susan, I think I saw it go over and then go right back down.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. We actually did hit 14,001, according to my information here. It was so quick, and I actually missed it. But, yes, the bulls are running. They have plenty to graze upon today.

There you see how close it is right now. Just about -- less than 20 points. But the Dow actually did hit 14,000 earlier on in the session.

And it's really been an amazing run, Heidi, when you think about it. The Dow Jones Industrial, up 12 percent this year, hitting more than 50 record closes since last October. It hit 13,000 in late April, so it's been a very quick run.

Now the Dow Jones Industrial average may be the world's most widely watched stock index, but it's only 30 stocks. It's the cream of the crop, for sure. Companies like Alcoa, which are in manufacturing, Wal-Mart, which is in retail, Exxon Mobil, which obviously is in the energy sector. And so it really shows the resilience of the U.S. economy, given the fact that we do have very high energy prices right now and oil is trading at about $75 a barrel. That's just a few dollars below the all-time high.

And, of course, we have continued weakness in the housing market. So it really shows the resilience of the U.S. economy despite these two great concerns. We did get wholesale prices just about an hour and a half ago and they came in only inching up 0.2 percent, showing actually a very welcome decline in food and energy prices.

So the Dow reflecting all of this optimism. We've seen also with corporate earns, both Coke and Johnson & Johnson, two Dow 30 stocks, reporting their quarterly earnings today. And the Dow Jones Industrial average on the march here. We've got a nice rally going on.

Back to you, Heidi.

COLLINS: I imagine the energy is pretty high there today, Susan. We will continue to check in with you and see if it actually goes above and stays for a while.

LISOVICZ: We'll see you later this hour.

COLLINS: OK. Great. Thanks, Susan.

HARRIS: The terror threat in the United States persistent and evolving. That according to a report by the nation's intelligence agencies. Declassified parts of the new National Intelligence Estimate being released this hour. The bottom line, less than comforting. Al Qaeda ramping up its training and its efforts to slip operatives into the United States. Justice correspondent Kelli Arena will join us with the findings later this hour.

An all-nighter on Capitol Hill. Troop withdrawal is the focus. We get details now from our congressional correspondent Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CORRESPONDENT, (voice over): It will be a classic Senate spectacle. Democrats plan to roll in cots for the cameras and stage an all-night Iraq debate. Pure political theater. Intended to shine a spotlight on Republicans who won't vote for a deadline for troop withdrawal.

SEN. HARRY REID, (D) MAJORITY LEADER: They are protecting the president rather than protecting our troops.

BASH: Privately, Democrats admit, their theatrics are not likely to produce GOP votes. Only three Republicans now support the Democrats' withdrawal deadline. Nowhere near enough to pass. And just one other GOP senator, Maine's Susan Collins, says she is considering voting yes. SEN. CHARLES SCHUMER, (D) NEW YORK: There's only one vote that will change the course in Iraq, that will force the president to change the course in Iraq. And that is the vote on Reid-Levin.

BASH: Democratic leaders insist they will only vote for a plan that brings troops home. And that's why several, less strict off measures from Republicans trying to pressure the president are not likely to pass.

SEN. JOHN WARNER, (R) VIRGINIA: I admire my Democratic colleagues, but when they see something good, sometimes they like to push back real quickly.

BASH: Many Democrats oppose legislation from two influential GOP senators that would force the president to send Congress a plan to narrow the Iraq mission. The same goes for a bipartisan measure backed by half a dozen GOP senators, to adopt recommendations from the Iraq Study Group, including a goal of troop withdrawal starting next spring.

REID: There's not a single tooth in that proposal. No, I can't vote for it.

(END VIDEOTAPE)

HARRIS: And Dana Bash joins us now.

Dana, good morning to you.

DANA BASH, CNN CORRESPONDENT: Good morning.

HARRIS: OK. What are the audiences for this move? Some will say this stunt. OK. I get the idea of pressuring the Republicans. Is there another audience?

BASH: There is. You know, as you said, the stated reason for doing this is to try to get at and pressure Republicans. But there is another very important target audience, Tony, and that is the Democrats' own constituency. It is their anti-war base, activists who have been really frustrated. They say, wait a minute, we elected you, the Democrats, to the majority in Congress eight months ago and you basically have nothing to show for it in terms of what the activists who are very, really intense on this issue want them to do, which is to change course in Iraq.

So what Democrats also are trying to do, and this is a very important point in terms of what we're going to see, the theatrics that we're going to see over the next 24 hours, is try to signal to these Democratic constituencies, these anti-war group, that they're trying. That they're trying to highlight the fact that it does take 60 votes in order to get anything done here. And by trying to even engage some of these groups, which we're going to have -- we're going to see them doing over the next 24 hours or so, they're trying to remind them that Democrats may not have gotten what these activists wanted, but they certainly are trying to get what they want.

HARRIS: Sure. Our congressional correspondent Dana Bash this morning.

Dana, thank you.

BASH: Thank you.

COLLINS: Senator David Vitter heading back to Capitol Hill today. The Louisiana Republican dropped out of sight last week after admitting a link to the alleged D.C. madam. Now he's resurfaced, talking again, with his wife at his side. Another apology and a response to other allegations.

(BEGIN VIDEO CLIP)

SEN. DAVID VITTER, (R) LOUISIANA: I want to again offer my deep, sincere apologies to all those I have let down and disappointed with these actions from my past. I am completely responsible and I'm so very, very sorry.

Unfortunately, my admission has encouraged some long-time political enemies and those hoping to profit from the situation to spread falsehoods, too, like those New Orleans stories in recent reporting. Those stories are not true.

WENDY VITTER, DAVID VITTER'S WIFE: To forgive is not always the easy choice, but it was and is the right choice for me. David is my best friend. Last week some people very sympathetically said to me, I wouldn't want to be in your shoes right now. I stand before you to tell you very proudly I am proud to be Wendy Vitter.

VITTER: I'm eager to continue my work in the U.S. Senate to help move Louisiana forward.

(END VIDEO CLIP)

COLLINS: Vitter says he and his wife went into seclusion last week to spend time alone with their children.

HARRIS: Diplomatic smack down over a spy scandal. Just moments ago, Moscow said to expect an adequate and appropriate response to Britain's decision to expel four Russian diplomats. It is all about this man and the prime suspect in his murder. Former KGB Agent Alexander Litvinenko died last fall after being poisoned with radioactive polonium while in London. British prosecutors say Russian businessman Andrei Lugovoy poisoned him. They want Lugovoy handed over for trial but Moscow says no way. The standoff lead Britain to expel the Russian diplomats.

COLLINS: Want to get to the weather now and Chad Myers. There he is. Appearing out of left field, sort of.

(WEATHER REPORT)

HARRIS: TV patient in surgery today. Doctors plan to remove the diseased portion of Andrew Speaker's lung. Speaker is the Atlanta attorney who went ahead with a European wedding trip after health officials said they told him not to fly. And in an exclusive interview with CNN's Dr. Sanjay Gupta, Speaker explained why he is going ahead with the operation now.

(BEGIN VIDEO CLIP)

ANDREW SPEAKER, TB PATIENT: With the amount of treatment I'm going to be on, the doctor said if you go ahead and have the surgery, you don't have to worry 10 years from now or 20 years from now or 30 years from now if it's ever going to come back. And that's worth the piece of mind to me.

DR. JOHN D MITCHELL, UNIVERSITY OF COLORADO: The surgery, actually, is reasonably low risk. There is some morbidity or possible complications and some mortality associated with it. But in general terms, it's going to be a low risk procedure.

(END VIDEO CLIP)

HARRIS: So our Dr. Gupta will be in the operating room to watch part of the procedure. We will have updates throughout the day here on CNN. And tonight at 10:00 Eastern, join Dr. Gupta with a complete report on CNN's "Anderson Cooper 360."

COLLINS: Still ahead, a father's chance to say his peace. Mark Lunsford heads back to court today. His first chance to talk directly to the man who killed his daughter.

HARRIS: Also, new nuclear fears after a deadly quake rocks Japan.

COLLINS: Tighter security at Colorado's capital building today. A deadly shooting just steps from the governor's office.

HARRIS: And YouTube, questions for the presidential candidate. Some of you guys are a little but -- a little strange.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The next question here is for old John Edwards.

UNIDENTIFIED MALE: Do you think you're cute?

(END VIDEO CLIP)

HARRIS: Jeanne Moos is with the YouTube rejects. That's ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And good morning again, everyone. Welcome back to the CNN NEWSROOM. I'm Tony Harris.

Bordering on chaos. Al Qaeda rising in a lawless land. A member of the Afghan parliament weighs in.

(COMMERCIAL BREAK) COLLINS: A father face-to-face with his daughter's killer this afternoon in Florida. It happens at a hearing around 1:00 for John Couey. The judge will hear arguments about Couey's mental capacity and whether he can be put to death. CNN's John Zarrella reports.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT, (voice over): Every day, nearly every moment of every waking day, Mark Lunsford lives with the pain.

MARK LUNSFORD, VICTIM'S FATHER: You get up, you brush it off and you keep going.

ZARRELLA: Now Lunsford gets to confront John Evander Couey, the man who caused his pain, the man who raped and murdered his nine-year- old daughter Jessica. As part of the sentencing process, Lunsford will have the opportunity to address Couey during proceedings in a Citrus County court room. Couey was convicted of the murder on March 7th. A week later, the jury recommended he die.

UNIDENTIFIED FEMALE: A majority of the jury by a vote of 10-2 advise and recommend to the court that it impose the death penalty upon John Evander Couey for the murder of Jessica Marie Lunsford.

ZARRELLA: Jessica disappeared February 2005. Her body was found three weeks later in a shallow grave outside a mobile home about 100 yards from where she lived. A convicted sex offender, Couey, who was staying with his sister in the trailer at the time, confessed. He kidnapped the girl from her bedroom and later buried her alive.

JOHN COUEY: I went out there one night and dug a hole and put her in it. Buried her.

ZARRELLA: The repulsiveness of the crime and the background of the man who did it led Florida to adopt the Jessica Lunsford Act, which imposed tough penalties for crimes against children, including minimum mandatory sentences and requiring sex offenders and predators to register twice a year in person. In Citrus County, police now go to schools and teach children how to fend off attackers. If they know not to panic, their attacker may get scared off, says one former prosecutor.

TRUDY NOVICKI, FORMER PROSECUTOR: Maybe with a five-year-old child they're going to feel very comfortable. But as soon as that child starts making a commotion, as soon as people start noticing what's going on, they're going to leave.

ZARRELLA: But is Jessica's Law enough.

LUNSFORD: Jessie's Law is just a stepping stone. It doesn't end there. That's just the very beginning. That's the very beginning. And more needs to be done. And I mean -- and tougher penalties need to be added to Jessie's Law.

ZARRELLA: For Mark Lunsford there is satisfaction in the new laws. It helps ease the pain. Pain he knows will never go away.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

COLLINS: John Couey's hearing is scheduled to begin at 1:00 p.m. Eastern in Inverness, Florida. CNN will take you there live for Mark Lunsford's remarks.

Mark Lunsford in Austin, Texas, Monday. Governor Rick Perry signing a version of Jessica's Law. It brings the death penalty into play for a second, aggravated offense on a child under 14 years old. Thirty-one states have now enacted versions of Jessica's Law.

HARRIS: And still ahead this morning, John Edwards on tour, focusing on poverty, taking aim at the president and our Anderson Cooper was there to capture it. His report is ahead.

COLLINS: And detained by Iran. Two Iranian-Americans make an apparent confession on state TV. Why some say the images are a hopeful sign.

(COMMERCIAL BREAK)

COLLINS: Getting a look at the big board now. Dow Jones Industrial average is up about 33, 34 points or so. And you know that saying, a watched pot never boils? We've seen it go above 14,000 just for a fraction of a second and then it went back down. So we're going to keep that on the back burner and continue to watch it. We'll bring Susan Lisovicz up in just a little while to talk more about our business stories. In the meantime, the Nasdaq also up about 9 points.

HARRIS: A candidate's cause. John Edwards on tour spotlighting poverty. CNN's Anderson Cooper reports.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN CORRESPONDENT, (voice over): John Edwards is walking through the lower ninth ward. There are not many voters here, but for him the pictures speak loudly. New Orleans is what he says his campaign is all about, a glaring symbol of presidential failure and governmental neglect.

JOHN EDWARDS, (D) PRESIDENTIAL CANDIDATE: Just the idea that people are still living like this and nothing is being done with billions of dollars have been appropriated. Where is the money? Stuck on some bureaucrat's desk somewhere? I mean, where is it?

ELIZABETH EDWARDS, JOHN EDWARDS' WIFE: So I had this idea when we were in there, is that I should put a FEMA trailer on the grounds of the White House and we tell the president he can live there until Whinny, who is in here, gets to move back into her house.

COOPER: We joined John and Elizabeth Edwards, the opening leg of their three-day, eight state tour, spotlighting his signature issue -- poverty in America. It's a political photo op and a political risk. In these times of war and uncertainly, it's unclear the plight of the poor will resonate with voters. Emphasizing poverty, however, sets Edwards apart from his higher-profile, better-funded opponents.

Do you think the other Democratic candidates are doing enough to focus attention on New Orleans, on the Gulf Coast.

J. EDWARDS: I think that the truth of the matter is, America is not paying enough attention.

COOPER: Edwards insists this is not a campaign swing. There are no rallies, no cheering crowds. A small gaggle of reporters follows him from stop to stop as he struggles for traction.

How much time are you on the phone trying to actually raise money?

J. EDWARDS: Well, except for the fact that you're in the car now, I'd be on the phone right now.

COOPER: Really.

J. EDWARDS: Yes. Oh, yes. In every car ride. Every car ride.

COOPER: That's (INAUDIBLE). That's incredible.

Edwards is used to the fund-raising and the constant campaigning. He's been doing it in some form for nearly six years.

Your campaign raised $9 million this quarter, down from the first quarter. You're running third in the polls. Why aren't you doing better?

J. EDWARDS: Well, I would gently argue with you about some of that. And at least for now, I appear to be ahead in Iowa, very competitive in the early states. But that's all politics. I think at the end of the day, what will matter to voters in those early states, who are paying very close attention, is, are you seasoned and experienced enough to be a good candidate for president? And, secondly, for the Democrats, they want to win. So they want to have a candidate that they know can win a general election.

COOPER: With him much of the time, his wife Elizabeth, a celebrity in her own right, fighting a personal and public battle with cancer. She's a top adviser and her husband's chief defender.

How angry do you get when you read, you know, about his $400 haircut or criticism of the house you guys are building?

E. EDWARDS: If somebody hears about the haircut and focuses on that, then they're not focusing on the real issues where he can change this country. And so that angers me. It angers me that, you know, that it's used as a political poking stick by our opposition.

COOPER: On the road again, another van, another plane, off to Mississippi now, then Arkansas and Tennessee. All along the way, they're talking with small groups of working poor, far away from the states that matter, at least in the campaign game.

J. EDWARDS: I hope that America sees that what they saw in New Orleans is not just in New Orleans, it's in rural areas in the south, it's in big cities in the north, and it is still a pervasive -- poverty is still a pervasive issue in America.

COOPER: A candidate hoping to be lifted by a cause.

Anderson Cooper, CNN, New Orleans.

(END VIDEOTAPE)

COLLINS: YouTube, but we won't.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: If you become president, how will you help gay military members like myself?

UNIDENTIFIED MALE: How do you plan to deal with illegal immigration?

(END VIDEO CLIP)

COLLINS: I think that guy's name was Bjorn.

HARRIS: Come on.

COLLINS: Questions not making the cut for the CNN/YouTube debate.

HARRIS: Also, Dow milestone. Stocks breaking the 14,000 mark for the first time this morning.

MATTHEW CHANCE, CNN CORRESPONDENT: I'm Matthew Chance in Moscow. The Russian media is calling this the start of a new diplomatic war. The day after Britain expels four Russian diplomats from London. We'll have more.

(COMMERCIAL BREAK)

COLLINS: Good morning once again, everybody. 10:30 Eastern Time. I'm Heidi Collins.

HARRIS: And I'm Tony Harris. Welcome back, everyone, to the CNN NEWSROOM.

A diplomatic smack down to tell you about over a spy scandal. It is all about the murder of this man, former KGB Alexander Litvinenko. Just moments ago Moscow set to expect an adequate and appropriate response to Britain's decision to expel four Russian diplomats. London did that because Moscow won't hand over the prime suspect in the murder. More now from our Matthew Chance.

(BEGIN VIDEOTAPE) MATTHEW CHANCE, CNN CORRESPONDENT, (voice over): The agonizing death of a Russian agent, now poisoning diplomatic relations too. The killing of Alexander Litvinenko and Moscow's refusal to expedite the prime suspect has plunged Britain and Russia into their worst crisis since the Cold War, underling stark differences between them.

YEVGENY VOLK, HERITAGE FOUNDATION: There is a certainly civilization gap between in how Britain understands its rule of law and the security of its citizens and how Russia understands the security of other nations. And I believe in this occasion, we could recall Cold War. Despite all the people saying, no Cold War now is feasible and there are no reasons.

(END VIDEOTAPE)

CHANCE: Russia's standoff with Britain comes at a time of heightened tensions with the United States as well. A recent informal summit between the countries' leaders failing to smooth differences. Particularly over U.S. plans to deploy elements of its missile defense system in eastern Europe. Last weekend, Russia pulled out of a key European security pact, meant to limit military forces on the continent.

It was read as a strong protest in this age of a resurgent Russia boosted by its oil wealth and led by Vladimir Putin, it seems frosty exchanges over Kosovo, over Iran, over anything else with the west are increasingly common. The Litvinenko standoff is just another example.

(BEGIN VIDEO CLIP)

DR. JONATHAN EYAL, INTL. SECURITY STUDIES: It's not merely the dispute over American plans for missile defense in Europe. It is not disputes about NATO enlargement of former Communist countries, although these are very serious.

But it is actually increasing evidence of Russian spying activities in various places, the German intelligence services are complaining about this, and an increasingly obstructive attitude of President Putin himself. This is -- it does not come in isolation. It is part of a landscape of a considerable cooling in the relationship.

(END VIDEO CLIP)

CHANCE: A landscape that, for Russia and for the west, promises a divide and bumpy ride.

HARRIS: Matthew Chance joins us live. Now, Matthew if you would, tell us more about the statement from the Russian government this morning.

CHANCE: Well, within the last hour there's been first response officially by the Russian government to those announcements made yesterday by the British, expelling four Russian diplomats from the embassy in London.

They haven't gone so far as to spell out exactly what measures they're going to take in response, but they did take the opportunity again to criticize the British reaction, saying it's really going to damage the ability of the two countries to cooperate on a range of issues, particularly in crime prevention and in counterterrorism, where they have built, they say, a very strong relationship over the past couple years. So Russia at this stage lamenting the fact that Britain is taking this tough stance.

HARRIS: CNN's Matthew Chance for us in Moscow. Matthew, thank you.

COLLINS: New nuclear concerns and a race to find survivors one day after that powerful earthquake in northwestern Japan, the threat of landslides adding to the anxiety of those looking through the debris. The death toll now at nine. Thousands of people have left their homes.

Meanwhile, reports today the earthquake knocked over barrels of nuclear waste at a power plant, several lost their lids, but it's not clear whether any of the material spilled. The power company had already said a small amount of radioactive water leaked into the sea, but officials said it was not strong enough to do damage.

HARRIS: Al Qaeda's comeback, a stark warning and a new terror forecast. Nuclear weapons remain a goal. We now have a copy of the summary report. An update straight ahead for you in the newsroom.

COLLINS: And bordering on chaos, al Qaeda rising in a lawless man, a member of the Afghan Parliament weighs in. He'll join us next in the newsroom.

(COMMERCIAL BREAK)

COLLINS: We have been following a story all morning for you here, the release of the National Intelligence Estimate summary. Our Ed Henry is getting a little bit of reaction from the White House. Ed, keeping in mind these estimates usually not only look at the current strengths and weaknesses of the country, but also look at possible future events.

ED HENRY, CNN CORRESPONDENT: That's right. The significance here, Heidi, is this is the first-ever National Intelligence Estimate on the terror threat to the U.S. homeland. We've heard before the term NIE, National Intelligence Estimate to talk about Iraq, talk about Iran, talk about specific countries.

The first ever, three years in the making, to look at the threat to the U.S. homeland. Significant is in this two-page document, essentially eight key findings. And one key one jumps out, according to these intelligence analysts within the government, quote, "We judge that the United States currently is in a heightened threat environment."

And something a lot of people will be taking a very close look at is the effect of the war in Iraq, and how that has impacted the terror threat to the United States. The analysts say, quote, "We assess that al Qaeda will probably seek to leverage the contact and capabilities of al Qaeda in Iraq, it's most visible and capable affiliate, and the only one known to have expressed a desire to attack the U.S. homeland.

In addition, we asses that its association with al Qaeda and Iraq helps al Qaeda to energize the broader Sunni extremist community." So essentially, what it's saying is talking about a heightened threat to the United States because of al Qaeda in Iraq. That's obviously going to fuel more criticism of the Bush administration.

Critics who say that the war in Iraq has only made al Qaeda stronger. A few moments ago, I asked White House spokesman Tony Snow whether in fact this is showing the U.S. is less safe because of the war in Iraq, he said no. He believes that what al Qaeda wants is bragging rights, they want to chase the Americans out of Iraq, he said, and al Qaeda has always wanted to use that as a vehicle to recruit for propaganda purposes.

Now, Tony Snow wouldn't go into more detail, because in about a half hour, the Homeland Security Advisor Fran Townsend here at the White House will be briefing reporters in more detail. But more broadly speaking, Tony Snow insisting this does not suggest that the war in Iraq has made the U.S. less safe. But that is going to be one of the findings that jumps out and a lot of critics will be pouncing on, Heidi.

COLLINS: All right, CNN's Ed Henry, for us with a reaction to the National Intelligence Estimate so far today from the White House. Thank you, Ed.

HENRY: Thank you.

HARRIS: The new intelligence report painting a disturbing picture of al Qaeda's resurgence along the Afghan/Pakistani border. What does this all mean? What's behind it? And what, if anything, can Afghanistan do about it? Daoud Sultanzoy is a member of the Afghan Parliament and a critic of President Hamid Karzai, he joins us from Los Angeles. Great to talk to you. Thanks for your time this morning.

SULTANZOY: Good morning. Thank you.

HARRIS: Let me start with this idea of what's happening in the tribal areas of Pakistan, North Waziristan. So, the deal with the tribal leaders, the Taliban elements of al Qaeda has fallen apart, the deal between the President Karzai and those elements. What does this mean for your country, for Afghanistan?

SULTANZOY: Actually it means that the fragile deal that was made was tenuous at best at the beginning, and many people expected this that it would not last very long, because the local people in the area did not have much say in it. It was probably manipulated by the foreign presence in the region in the North Waziristan along the Durand Line.

And they are trying to put pressure on the Afghan government and also on the United States. As we speak, the United States being ...

HARRIS: Well ... SULTANZOY: ...in Iraq and the al Qaeda network trying to extend their pressure and show some muscle.

HARRIS: Well, let's -- let's talk about that. How concerned are you that the political turmoil in Pakistan will lead to a stronger al Qaeda and some even more of these cross-border incursions into Afghanistan?

SULTANZOY: This shows to say that we all along said that when you're not doing anything to enhance the security situation in Afghanistan, any fragile situation in Afghanistan and instability in Afghanistan ...

HARRIS: So it's not being done, more should be done.

SULTANZOY: ...yes, it could boomerang and go into Pakistan. And we're just seeing those signs now. Pakistan was lethargic and was not serious, and now they're seeing the impact of the boomerang effect into Pakistan.

HARRIS: But if I understand you correctly, sure, that is an issue, cross-border incursions, and the political problem, the security issues in Pakistan certainly a problem, but you point to elements inside of the government in Afghanistan as possibly being an even bigger concern and the issue being corruption in the Afghanistan government. Talk to us about that.

SULTANZOY: Yes, we have many problems in Afghanistan, one of which is corruption. We have elements in the government, in the state who are looking after their personal interests and narrow group interests rather than national interests.

We have had achievements in bringing democracy, presidential elections, parliamentary elections, but yet, those elections are being undermined, those results and the achievements of the earlier years are being undermined and somewhat -- losing some of the momentum because of the fact that Afghanistan is still facing a huge problem in terms of corruption ...

HARRIS: Well ...

SULTANZOY: ...in terms of mismanagement and weak governance.

HARRIS: Let's try to put a fine point on this. Are you suggesting that President Karzai is a part of the corruption problem?

SULTANZOY: No, I did not say President Karzai is part of the corruption problem, but he is the president of the -- president of Afghanistan, he was elected by the people of Afghanistan, and naturally the buck stops with the president of a country.

But the president alone cannot change everything by himself. He needs cooperation from all the branches of the government, including the Parliament, including the Judiciary, and also the international community has to play its role in stemming the corruption, that it's not just a monopoly of the Afghan state or the Afghan people, but the foreign presence has also marred with corruption ...

HARRIS: Well ...

SULTANZOY: ...and mismanagement and ...

HARRIS: ...now I'm a little confused. Daoud, I'm a little confused. Have you not suggested in the past that corruption extends all the way to the president's office and extends to family members, to Karzai family members?

SULTANZOY: The corruption that we talk about in Afghanistan, naturally nepotism and mismanagement and waste, and all those things are related to each other.

And naturally, people who are related to high officials in the government take advantage of that relation and are trying to corner the economy and the economy falling in the hands of a few, depriving the majority of the nation from the health and aid the world is providing for Afghanistan, and the hard-earned taxpayer money that goes from the United States, Europe and other friendly countries to Afghanistan is being wasted.

And that has to be checked, because people of the world cannot stand by and watch this waste go on and this corruption go on.

HARRIS: So, just to be clear, you're not making a specific allegation here that a portion of the billions of dollars that the U.S. is giving to Afghanistan to rebuild the country is actually going into the pockets of the parties (ph).

SULTANZOY: I am -- no, I did not mention any names, but I'm saying that a large portion of the money is being wasted in the corruption and waste and mismanagement that is going into many pockets. It's a known fact in Afghanistan.

HARRIS: And Daoud Sultanzoy, a member of the Afghan Parliament, thank you for your time this morning, we appreciate it.

SULTANZOY: Thank you very much.

COLLINS: The Dow Jones Industrial average reaches a major milestone. Susan Lisovicz is at the New York Stock Exchange with more on what's driving stocks.

You've got a lot to do here, Susan. Go for it.

(BUSINESS HEADLINES)

HARRIS: So, even nude beaches require a certain degree of etiquette. Rule number one, be sure it's a nude beach before shedding your inhibition.

(COMMERCIAL BREAK)

COLLINS: You already know to catch us weekday mornings from 9:00 a.m. until noon Eastern, but did you know you can take us with you anywhere you go on your iPod? CNN NEWSROOM podcast available 24/7, right there on your iPod.

HARRIS: Look, no day at the beach really for police, but they ultimately -- well, they got their man. Oh did we mention the suspect was naked? Police say when they tried to nab him, the 20-year-old, well, he ran into the ocean. He eventually came back to shore, promptly caught, cuffed, covered -- thank goodness. An eyewitness described the scene.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The one woman was trying to take a picture, and there were people walking by right by the shoreline that were kind of oblivious that didn't realize what was going on, I guess, because he hadn't stood up yet.

(END VIDEO CLIP)

COLLINS: What?

HARRIS: No one quite noticed his shortcomings.

COLLINS: Oh.

HARRIS: The suspect faces numerous charges, including indecent exposure.

COLLINS: Serious debate, funny questions. Get a load of some silly submissions for the CNN/YouTube debate.

Our Jeanne Moos sure did.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): When a professional moderator is not composing the questions, the questions tend to be less moderate.

UNIDENTIFIED MALE: Greetings, I am Bjorn Svenson.

UNIDENTIFIED MALE: Hey, how's it going?

UNIDENTIFIED MALE: Groucho (ph) from Los Angeles.

UNIDENTIFIED FEMALE: My question is ...

MOOS: Oh, they have questions all right.

UNIDENTIFIED MALE: ...about aliens.

UNIDENTIFIED MALE: The next question here is for old John Edwards.

UNIDENTIFIED MALE: Do you think you're cute?

UNIDENTIFIED FEMALE: Would you allow us to be married -- to each other? UNIDENTIFIED MALE: Going for it.

MOOS: These YouTubers are whispering, they're leering ...

UNIDENTIFIED MALE: Hello, Hillary.

MOOS: ...they're whining ...

UNIDENTIFIED FEMALE: Can you answer my question?

MOOS: ...they're eating while they ask.

UNIDENTIFIED MALE: ...never envisioned 52 states ...

MOOS: Imagine addressing potential presidents like this.

UNIDENTIFIED MALE: Yo, yo, yo, my name is Dewizzle (ph).

MOOS: CNN and YouTube are asking you to submit videotaped questions, questions each candidate will watch on a monitor built into his or her podium.

UNIDENTIFIED MALE: I want to know what you think is -- I don't know, the greatest invention you've heard of.

MOOS: Toothpicks (ph) and visual aids are encouraged to make a point about healthcare ...

UNIDENTIFIED FEMALE: This scar ...

MOOS: One woman flashed her heart surgery scar. This guy waved around a Social Security statement.

UNIDENTIFIED MALE: But seeing that Social Security is going to be extinct in the near future, why am I still getting these?

MOOS: That's the kind of serious questions CNN honchos probably will choose to include. The ones we're highlighting are what you probably won't see.

UNIDENTIFIED MALE: (INAUDIBLE). CNN will never use that.

MOOS: There's no such thing as a dress code among those submitting questions for this debate.

UNIDENTIFIED MALE: I call myself the anonymous American. Will you right then and there sign an executive order beginning the withdrawal of troops from Iraq?

UNIDENTIFIED MALE: How do you plan to deal with illegal immigration?

MOOS: This guy tried a little show-and-tell ...

UNIDENTIFIED MALE: Here's science ... MOOS: ...demonstrating how little money goes to science compared to weapons research. Some are questions candidates don't normally get asked.

UNIDENTIFIED MALE: They have donated blood.

UNIDENTIFIED MALE: In God we trust. What do those words mean to you?

MOOS: And then there was the do ask and do tell teddy bear.

UNIDENTIFIED MALE: I'd like to keep my name and hometown anonymous, because I am in the military and I am gay.

UNIDENTIFIED MALE: I'm a middle-in-the-road (INAUDIBLE) I am registered (INAUDIBLE), I mean Democrat. Do you feel the terrorists -- will the terrorists may come here? Oh my God, there is one here right now. Hey, h-h-h, stop, please.

MOOS: My question to you candidates, do you regret agreeing to do this debate yet? Even a real cat submitted a question. How can you product my food in the future, due to (ph) the contaminated pet food scare.

A pair of comedians had a question for John Edwards.

UNIDENTIFIED MALE: Do you think you're better-looking than Barack Obama? Say what, shirts off, we're going to count abs. We're going to have an ab-counting contest.

UNIDENTIFIED MALE: I don't want nobody taking off their shirts.

MOOS: Especially not any female candidates. Some even sang to the contenders.

UNIDENTIFIED MALE: This here's a two-part question.

(singing): Pay taxes on my clothes and food ...

MOOS: And after a tax question ...

UNIDENTIFIED MALE: Also, I got a parking ticket last week. Could one of y'all pardon me?

MOOS: Pardon the questions.

UNIDENTIFIED MALE: Take that, CNN.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COLLINS: Well, just to remind you ...

HARRIS: Yes. COLLINS: ...we are still accepting legitimate questions for next week's Democratic debate. Go to CNN.com/youtubedebate. And tonight, join Paula Zahn with more of your video questions as we count down to the debate. Again, that's tonight and every night this week at 8:00 p.m. Eastern.

HARRIS: He says God and his wife have forgiven him. A senator linked to an accused madam heads back to work.

(BEGIN VIDEO CLIP)

SEN. DAVID VITTER, (R-LA): I want to again offer my deep, sincere apologies to all those I have let down and disappointed.

(END VIDEO CLIP)

HARRIS: D.C.'s sex scandal, straight ahead in the NEWSROOM.

(BEGIN VIDEOTAPE)

JUDY FORTIN, CNN CORRESPONDENT: The number of infants being tested for 21 or more life-threatening disorders has doubled in the past two years. That's according to an annual "March of Dimes" report. Highlighted here are the ten U.S. states not required by law to screen for the minimum 21 recommended number of tests. Expectant parents can check with their state's Health Department for a list of required screenings.

The New England Journal of Medicine reports a major new finding when it comes to two breast cancer genes. Women with bracha (ph) one and bracha two have a higher risk of developing breast cancer. But the study says their survival rate is about the same as those without the gene. The findings come after researchers analyzed 20 years worth of data from study participants.

And here's some food for thought. A new study links a western diet to breast cancer in post-menopausal Asian women. The study finds women who ate diets high in meats, breads and sweets increased their risk of breast cancer by 60 percent. The Asian women who ate diets high in vegetables and soy protein had no increased risk later on in life.

Judy Fortin, CNN.

(END VIDEOTAPE)

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