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Karzai & Bush Talk Security; Gay Street Opens in Rome

Aired August 06, 2007 - 12:00   ET

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


HALA GORANI, CNN ANCHOR: Problems discussed. The Afghan and U.S. presidents ponder a host of security issues at a summit outside Washington.
JIM CLANCY, CNN ANCHOR: Munitions mystery. How and why did tens of thousands of weapons go missing in Iraq?

GORANI: Three hundred sixty-six days and counting. We'll check in on Beijing as the countdown clock revs up for the 2008 Summer Olympics.

CLANCY: It's 6:00 p.m. right now in Rome, midnight in Beijing. Hello and welcome to our report broadcast from around the globe. I'm Jim Clancy.

GORANI: I'm Hala Gorani. From Beijing to Baghdad, Rome to Riyadh, wherever you're watching, this is YOUR WORLD TODAY.

Rising violence, a resurgent Taliban, another hostage crisis. The problems in Afghanistan run deep. And President Hamid Karzai is looking for help from the United States and turning -- trying to turn the security situation around. He and President George Bush have just wrapped up two days of talks at Camp David. Let's go straight to White House correspondent Elaine Quijano, who was following that news conference and those questions that the two leaders took from journalists -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you Hala. That's right, President Bush and President Karzai wrapping up their two-day visit, as you mention, at the presidential retreat at Camp David, Maryland. Both leaders essentially reaffirmed their commitment to working together in the U.S.-led war on terror. Both leaders emphasized their need to fight and keep pressure on the Taliban amid a resurgence of Taliban forces in Afghanistan.

But at the same time, United States and Afghanistan do not see eye to eye on the role of Iran in the region. President Karzai this weekend told our Wolf Blitzer that he sees Iran for now as a "helper" in his words. Part of a solution. But President Bush made clear today, he strongly disagrees.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I believe that it's in the interests of all of us that we have an Iran that tries to stabilize, not destabilize, an Iran that gives up its weapons ambitions. And, therefore, we're working to that end. The president knows best about what's taking place in his country and, of course, I'm willing to listen. But from my perspective, the burden of proof is on the Iranian government to show us that they're a positive force.

(END VIDEO CLIP)

QUIJANO: Now, when it comes to the Taliban, President Karzai tried to strike a defiant tone, talking about the Taliban and its ability to target civilians. But saying that the Taliban has not been effective in knocking down Afghanistan's government and its institutions.

(BEGIN VIDEO CLIP)

HAMID KARZAI, AFGHAN PRESIDENT: A long way, progress has been made. We still continue to fight terrorism, our enemies until they are defeated, but still hiding in the mountains. And our duty is to complete the job, to get them out of their hideouts in the mountains and to bring justice to the people of Afghanistan, to the people of America, and to the people around the world who are threatened by these terrorists.

(END VIDEO CLIP)

QUIJANO: Now, we also heard a bit of a preview today from President Karzai about his upcoming meeting later this week with Pakistan's president, Pervez Musharraf. Despite tensions between those two countries, President Karzai predicted that it would be a good meeting later this week.

Interesting to note though as well President Bush today was asked whether or not the United States would seek permission, essentially, from Pakistan if the United States had actionable intelligence against al Qaeda targets in Pakistan. The president did not answer directly. Instead, emphasizing that the U.S. would work in cooperation with Pakistan to go after any targets -- Hala.

GORANI: All right. Elaine Quijano at the White House. Thank you very much.

And that's an issue we are going to address -- and Jim is, with the Pakistani ambassador to the U.S. -- Jim.

CLANCY: That's right. The ambassador Mahmud Ali Durrani, the Pakistan ambassador to the United States is joining us. Because, of course, soon after President Karzai goes back to his country, he'll be talking with Pakistan's president, to do more to rout out Islamic militants in some of those remote regions along the Afghan-Pakistan border. Critics, including the U.S., say militants have been able to strengthen and even flourish there.

Mr. Ambassador, thank you so much for being here.

MAHMUD ALI DURRANI, PAKISTANI AMBASSADOR TO U.S.: It's a pleasure.

CLANCY: The president didn't directly address, we just noted, this whole issue of whether if you had actionable intelligence, you would go in there. The president was very clear when he said that there has to be a decision that's made here by Afghanistan, by the United States and by Pakistan. You either confront the Taliban or you don't.

And he's -- the question then to you is, is Pakistan prepared to go into Waziristan, into north Waziristan and these areas and confront the Taliban?

ALI DURRANI: One hundred and ten percent. Pakistan is already there. We have 85,000 troops in the tribal area. We will not hesitate a moment if we have actionable intelligence, timely intelligence, we'll go after them.

CLANCY: But you know the Taliban is there.

ALI DURRANI: Well, the Taliban (INAUDIBLE) Taliban is to (INAUDIBLE). But we're talking about the bad guys.

CLANCY: Within the last 24 hours, U.S. troops pursued Taliban from Afghanistan into Pakistan. They attacked them. They apologized for the error, because some civilians were killed.

ALI DURRANI: Yes. Now that's one of our biggest concerns. That we want to go after the Taliban, but we want to avoid collateral damage. You will go away. We have to live with these people. So we will when get actionable -- and we have done it in the past. Even since signing agreements with the tribal leaders, we have gone after -- if we have discovered there a training camp, there's (INAUDIBLE), we have gone after them. We have no hesitation. If we have good intelligence, we go happily.

CLANCY: But this came down to a don't shoot-don't tell policy almost where the Taliban...

ALI DURRANI: No.

CLANCY: ... was able to build up in what was really a zone where they had impunity. They were able to rebuild their infrastructure.

ALI DURRANI: No, I disagree with that. I think, you know, you look at it, Pakistan has 85,000 troops in the tribal area. And now they have put another 20,000, 30,000 around the tribal area. We are containing them. You have only 40,000 troops in an area 20 times larger, which is Afghanistan. They have freedom of space.

Most of the attacks that have come about in Afghanistan, you need to do a statistical study. Most of them have been from away from the border. One of the insurgents I remember we caught a couple of days back. He blew himself up in Afghanistan. He was operating in Helmand for five months. You can get a hold -- couldn't get a hold of him. We got him in Pakistan in, I think, less than a week.

So, we are doing...

CLANCY: There is going to be a confrontation. ALI DURRANI: Absolutely there will be. We are going to hit the bad guys. There's no doubt about it. We've been doing it. We'll continue doing it.

CLANCY: President Hamid Karzai is going to be sitting down with President Musharraf. What does Pakistan need to get out of that meeting? Now we toned down a little bit of the rhetoric between the two nations. Criticism of each other's defense policy, vis-a-vis the Taliban. But what is next? What do you need?

ALI DURRANI: I think we need to cooperate. We need sit down like grown-ups, Pakistan, the U.S., and Afghanistan, and not blame each other. And certainly with due respect to CNN, not use the media to conduct negotiations. We need to sit down, talk it out, roll up your sleeves, be straight with each other. And that's how we're going to control and defeat extremism.

CLANCY: All right. Let's go back and listen. You know, the debate in the United States is, they wonder if al Qaeda was there, if the president knew, what should the president do? It came out during some comments that were made by Barack Obama, one of the leading Democratic candidates.

Let's listen.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: There are terrorists holed up in those mountains who murdered 3,000 Americans. If we have actionable intelligence about high-value terrorist targets and President Musharraf will not act, we will.

(END VIDEO CLIP)

CLANCY: He will act. That's what he says he would do.

(LAUGHTER)

CLANCY: Now, what's wrong with that? Did he talk to any Pakistanis at all before he said that?

ALI DURRANI: No, no. It's a very speculative question. First of all, there's some inaccuracy. The 3,000 people who were killed in the U.S. was before there was any Taliban or any al Qaeda in Pakistan. Remember, al Qaeda was created in Afghanistan. Taliban was created in Afghanistan, never in Pakistan.

CLANCY: Well, they were...

ALI DURRANI: This is recent...

CLANCY: ... in Baluchistan, the madrassas were in Baluchistan and they went across.

ALI DURRANI: No, no, no, no.

CLANCY: All right.

ALI DURRANI: I'm talking of the 3,000 killed, 3,000, which was the Pakistani who killed the 3,000? There was not a single Arab -- sorry, neither a (INAUDIBLE) or a Pakistani. So that statement is wrong.

CLANCY: Does this put at risk public support? If U.S. troops go into Pakistan, does that undermine the fight against the Taliban in Pakistan?

ALI DURRANI: You're right. It will.

CLANCY: All right. Public support might be eroded.

ALI DURRANI: It will if the U.S. goes in Pakistan. I have all the respect for all of these candidates politicking, fine. But I don't think this is a good strategy.

CLANCY: All right.

ALI DURRANI: This will not help the United States' objective. We need to fight extremism and terrorism with all that we have. If we have media debates on these issues, I think we (INAUDIBLE). Sorry.

CLANCY: Ambassador Mahmud Ali Durrani, I want to thank you very much for joining us on YOUR WORLD TODAY.

ALI DURRANI: My pleasure. My pleasure. Take care.

GORANI: All right. Now, let's check some of the other stories making news around the world this hour.

CLANCY: And we're going to begin with a milestone in the Middle East. Israel's prime minister says he wants to restart talks on creating a Palestinian state. Ehud Olmert met with Palestinian President Mahmoud Abbas Monday on the West Bank. This is the first time an Israeli prime minister has visited a Palestinian city since an outbreak of fighting seven years ago.

GORANI: Now, military teams in India and Bangladesh are trying to keep up with the demand for relief supplies in areas hit hardest by South Asia's monsoon rains. Nearly 20 million people have been displaced in the region and relief agencies are trying to distribute medicine to prevent the spread of water-borne diseases.

CLANCY: The historic city Dubrovnik, Croatia, the pearl of the Adriatic, breathing a sigh of relief after dodging a major hit from fast-moving forest fires. Hundreds of firefighters worked through the night to get control of the blazes, which raced across the border from Bosnia on Saturday.

GORANI: Now, the Pentagon has lost track of around 30 percent of the weapons and military material that it has given to Iraqi security forces over the last few years. That is according to a government accountability report that says that some 190,000 missing AK-47 rifles as well as pistols. The report raises concerns that the arsenal may have fallen into insurgent hands and is being used against U.S. troops. We are going to be speaking a little bit later to a Washington Post reporter who has been following this story. Where, why, and how did almost 200,000 weapons go missing in Iraq? Jim.

CLANCY: A sign of progress in Iraq. The Iraqi stock market is now open to foreign investors. The scene doesn't match the frenetic pace of, say, the New York Stock Exchange. But activity in the Iraqi stock market is a good indicator for those trying to shore up the country's financial institutions.

Dan Rivers is there.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT (voice-over): He may look like he's at a horse race, but, in fact, he's keeping a careful eye on Iraq's fragile economy. This is Baghdad's rather low-tech stock exchange which has somehow managed to keep functioning while much of the capital is gripped by fear and hopelessness.

It's the rawest form of capitalism, supply meeting demand on the walls of this small building.

(on camera): All the prices are written up on these boards and when the price changes they simply rub them out and write up a new price. And here we've got banking companies and insurance companies. So, this has got to be the only stock exchange in the world where there isn't a single computer.

(voice-over): But soon whiteboards and markers will be replaced by this: a brand new computer trading system supplied by the Americans. It has been talked about for three years. But now the equipment is finally ready. It just needs Baghdad's bickering politicians to approve the switchover.

The man in charge hopes the first step into the digital age will not mean the end of the exchange's boisterous atmosphere.

TAHA AHMED ABDEL- SALAM, CEO, BAGHDAD EXCHANGE: (INAUDIBLE) will be -- stay in the market because the Iraqis like to come to the market and so -- and see everything by themselves. I will miss that too because I was in the business since the old Baghdad Stock Exchange.

RIVERS: In 2003 almost every financial institution in Iraq was looted. The stock exchange was stripped bare. It moved locations several times before the U.S. funded a new office, which opened last year.

And now, another milestone. New rules allowing foreigners to invest. No takers yet. But the sheer potential has brokers delighted.

HAITHAM ELIAS, BROKER: It helps all of us, especially the brokers. I think it's very good for the brokers, for all the brokers here in the market. And also for the whole economy for Iraq.

RIVERS: The closing bell rings after just two hours of trading. Most deals are still settled by personal check. Open just three days a week, turnover is modest. Just over $1 million a day. It's pretty small scale, but fiercely guarded. This could be a crucial building block in the new Iraq, and a prime target for those who oppose an American-style free-market democracy.

Dan Rivers, CNN, Baghdad.

(END VIDEOTAPE)

CLANCY: Coming up, a walk on Rome's gay streets?

GORANI: Now, it is a hard-worn symbol of acceptance for Italy's gay and lesbian community, but it is threatening to unravel all because of a kiss.

CLANCY: Plus, a year and a day. China hosts the summer games. We'll leave you ready. We're going to have a live report from Beijing.

(COMMERCIAL BREAK)

GORANI: Welcome back to CNN INTERNATIONAL and YOUR WORLD TODAY.

CLANCY: We're covering the news the world wants to know, sometimes needs to know, and giving you a little bit more perspective that goes deeper into the stories of the day.

GORANI: And one of those stories is about the French president, Nicolas Sarkozy, who was newly elected a few months ago and his vacation in America is getting a lot of attention. As a result, it hasn't been all rest and relaxation for President Sarkozy. He actually had a run-in with American news photographers on New Hampshire's Lake Winnipesaukee Sunday. The journalists say he jumped onto their boat and scolded them loudly in French.

New Hampshire may not have been the quiet holiday spot Mr. Sarkozy expected. Photographers have converged on the state holding the first U.S. presidential primary five months from now. And really, in France also people are scratching their heads. I mean, those that criticize him say he's just a little too American.

CLANCY: How do you pronounce the lake's name again in French?

GORANI: I don't know -- oh, well, in French, let me try. Where is it? I'm not even going to try it actually. I'm not even going there.

CLANCY: Well, whatever it was, he could pronounce what he needed to in French with the journalists.

GORANI: I'm sure. I'm sure. I wonder what he said, exactly.

CLANCY: Well, from France, let's go to Italy now. And it may be for lovers, but a recent moment of passion is threatening to push the city's conservatives, led by the Vatican, just right over the edge.

GORANI: Now it's one thing when a man and a woman kiss in public. But as Alessio Vinci reports, this was something else entirely.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN ROME BUREAU CHIEF: Vladimir Luxuria, Italy's best-known transsexual performing at the Gay Village, a popular summer hang-out in Rome.

The Honorable Vladimir Luxuria is also a member of the Italian parliament, elected last year with a large majority of votes. Luxuria is proof that gays, lesbians and transgenders have come a long way in Italy. But Luxuria says the fact that police briefly detained two gays last week allegedly for kissing in public is an indication that there is still prejudice against them.

VLADIMIR LUXURIA, ITALIAN PARLIAMENT MEMBER: Usually when they find a heterosexual couple, they just, you know, say, oh, what are you doing? Get dressed. But they don't take these people to the police station, you know, to make these people feel as criminals.

VINCI: The police insist the couple was not just kissing but performing a sex act in public. The incident sparked controversy at a time when gay activists inaugurated their first Gay Street, a symbolic name for a place long frequented by gays and lesbians.

"For us, it's a small victory," says Alessio (ph), who attended the gathering with his boyfriend. Organizers say Gay Street is an opportunity to bring together gays and straights. But scenes like these still provoke unease among some people living and working nearby.

"We are used to it, but it is still something unique," says Hugo, a waiter at this trattoria. The owner of a nearby pizzeria welcomes the publicity the kissing incident brought to this area.

"Often there is more than just a kiss," he says. "Maybe they had a drink or two too many, whether you are homosexual or heterosexual," he says, "you should never offend discretion."

Flavia (ph) owns the Coming Out Bar in the heart of Gay Street. "There is a silent tolerance here," she says. "It is possible for women to walk along hand in hand," she says. "But it's seen with amazement. It's not something normal," she says.

They opened the street. But clearly here in Italy they still have a long way to go.

(on camera): In a country where practically everyone is a Catholic, the words of the pope still carry some weight. And although the Vatican did not comment on the opening of Gay Street, the pope's position is well-known. On numerous occasions he reaffirmed that gays in the Catholic Church are not welcome.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

CLANCY: Well, now, answering that age-old question, why do race car drivers get paid so much? Take a look.

GORANI: Well, it happened in Sunday's the Indy car race in Michigan. Indy 500 winner Dario Franchitti -- oh dear, wasn't so lucky in this race. Airborne after hitting another car.

CLANCY: And leaving some tire marks on other drivers' helmets. The accident starting a chain reaction. Thank goodness nobody was seriously hurt. Teammate Tony Kanaan won the crash-filled Firestone Indy 500. But there were pieces of that car all over everywhere. He said he wanted to own it. And afterwards, Mario Andretti came up to him and he says, you know what, it's yours now.

(LAUGHTER)

GORANI: Yes, exactly.

CLANCY: Because there is not left.

GORANI: Well, thankfully we can laugh about it because...

CLANCY: Nobody was really hurt.

GORANI: Nobody was hurt.

CLANCY: Seriously hurt.

GORANI: Well, speaking of sport and hopefully not with as much commotion, the 2007 Olympics begin a year from Wednesday -- 2008 Olympics, I should say. We'll have a live report from Beijing on the preparations and the problems.

CLANCY: Stay with us.

(COMMERCIAL BREAK)

DON LEMON, CNN ANCHOR: Hello, everyone, I'm Don Lemon live at the CNN World Headquarters in Atlanta. More of YOUR WORLD TODAY just in a few minutes. But, first, a check on the stories making headlines right here in the United States.

First up for us, shortly, after an earthquake a coal mine collapses in central Utah, six miners are believed trapped in that. It happened in Huntington, about 20 miles from the epicenter of the magnitude 4.0 quake. Now if you have photos, videos or eyewitness stories about the mine collapse, please send them now to cnn.com. Just click on "I-Report" and you'll be prompted through that process, cnn.com/ireport.

We have some new details now this hour on an explosives scare. The FBI is on the case. Two men arrested this weekend in Goose Creek, South Carolina. CNN's Rusty Dornin has the very latest from Charleston for us -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Don, there has been a lot of conflicting reports about this incident. The FBI saying that no bombs were discovered. At first local officials were saying bombs were discovered inside a car that had been pulled over speeding. There were two men, one man, Yousef Megahed from Egypt, and Ahmed Mohamed from Kuwait, are both in the United States legally.

They were pulled over for speeding. And when the police officer spoke to them, he noticed some suspicious behavior. Let's listen.

(BEGIN VIDEO CLIP)

SHERIFF WAYNE DEWITT, BERKELEY COUNTY, SOUTH CAROLINA: One not wanting to talk basically. The other talking, sort of telling different stories as to where they were, where they were going and why they are in this particular area. The mere fact of the folding of the laptop computer, and disposing of it before the officer came up. That's just, you know, clearly suspicious activity.

(END VIDEO CLIP)

DORNIN: But apparently the pair did admit to having fireworks. Now, when police went through the car, they did discover some suspicious items. They took something out of the car, ended up bringing a robot in which exploded it. That's initially when they started saying there was a bomb inside the car. But apparently federal officials are saying there are no links to terrorism at this point. Although they are examining the laptop for the police here.

And also they are students at the University of South Florida, and apparently there's going to be a press conference there this afternoon. The two will have a bond hearing in Moncks Corner, South Carolina, at 4:00 -- Don.

LEMON: All right. Rusty, thank you for your report. We'll be checking with you throughout the day. Also another story we want to update you on. It's just into the CNN NEWSROOM. This is happening in Pembroke Park, Florida. This information that is saying an officer is down there. You're looking at live video from our affiliate WPLG. You can see lots of police officers on the scene.

The only information we're getting now is there has been an incident, a shooting in the 3900 block of Pembroke Road, and they believe one officer is down. The public information officer expected to talk about this shortly with reporters. As soon as we get more information on this.

But you can see there, wow, a scene with a lot of police officers. A lot of police presence. An officer believed to be down in Pembroke Park, Florida. We're going to update you on the top of the hour on this developing story.

Let's move on and talk about Afghanistan. The first battleground in the war on terror. Now sometimes called the forgotten war. Afghan leader Hamid Karzai is looking to shore up his alliance with the U.S. He met with President Bush this morning at Camp David.

Mr. Karzai's government is perceived by crisis. among them were a resurgence by the Taliban.

(BEGIN VIDEO CLIP)

HAMID KARZAI, AFGHAN PRESIDENT: As we have gone a long way, progress has been made. We'll still continue to fight terrorism. Our enemies are still out there, defeated but still hiding in the mountains. And our duty is to complete the job, to get them out of their hideouts in the mountains and to bring justice to the people of Afghanistan, to the people of America, and to the people around the world who are threatened by these terrorists.

(END VIDEO CLIP)

LEMON: The Taliban have unleashed the worst violence since the U.S.-led invasion toppled them from power nearly six years ago.

Happening now in Louisville, Kentucky, a search for suspects from a bloody bank robbery. Police say two employees were shot during this morning's holdup. Both suffered non-life-threatening injuries. Police say the gunmen, in their teens or early 20s, burst into the bank and demanded money. Then they fired off a couple of shots. Police have found their getaway car and are using dogs to hunt those fugitives.

Well, happening right now in Minneapolis, expert help is on the way. Army and Navy divers are heading to the site of that tragic bridge collapse. They'll help remove debris and work with victims -- with divers to find those victims. Eight people are still missing. Those lost in the disaster were remembered at a prayer service last weekend.

We'll have more on these continuing stories happening at the top of the hour. For now, back to YOUR WORLD TODAY. The NEWSROOM begins at 1:00 p.m. Eastern. I'm Don Lemon.

(COMMERCIAL BREAK)

LEMON: New information just in to CNN on that mine collapse in central Utah. Let's get the very latest now, where six mine workers are believed to be trapped. Steve Carlson, who is a program director for radio station KDYL joins us.

Steve, what are you seeing on the scene?

STEVE CARLSON, PROGRAM DIRECTOR, KDYL RADIO: Apparently, rescue workers are on the scene right now trying to locate six missing miners that are unaccounted for due to this mine collapse that happened early this morning at about 3:50 local time, apparently due to a 4.0 earthquake.

LEMON: A 4.0 earthquake. You were in the area. Did you feel any of that? Did it shake, rumble? CARLSON: We are actually in Salt Lake City, about 100 miles northeast of Price, Utah, where the earthquake occurred. So, we have really had no reports of anybody feeling it in this area.

LEMON: Earthquake in your area. How common do you feel them? I know that you're part of -- you're in that belt, but how common do you get them there?

CARLSON: We get them occasionally. We do live on the Wasatch Fault, which is prone to earthquakes. There's always talk of the big one happening. But as far as this one goes, we were -- we really didn't feel it in this area.

LEMON: Yeah. And so, now, the only reports of injuries are not really, we're not sure if the mine workers are injured, but the only reports we have are six people trapped. No other injuries from this earthquake, which is believed to have caused this collapse?

CARLSON: That's right. Rescue workers are on the scene trying to locate the six miners. There's also rescue team and heavy equipment on the way from the local utility power company. And a command center has been set up in Huntington, Utah.

LEMON: Right.

CARLSON: About 15 miles from the mine.

LEMON: Right. And Huntington Canyon area is again, about 100 miles southeast of Salt Lake City, is where this collapse is believed to have happened.

Correct me, it's the Genwal Mines, correct?

CARLSON: That is correct.

LEMON: Thank you, Steve Carlson, the program director for KDYL. The radio station there, they are covering this story. Want to continue to cover the story throughout the day, here in the CNN NEWSROOM.

For now, six miners trapped in a mine collapsed there, believed to have been caused by an earthquake. We'll update you on the NEWSROOM. We'll get back now to YOUR WORLD TODAY, already in progress.

I'm Don Lemon.

ANDREW STEVENS, CNN CORRESPONDENT (voice over): A huge amount of work has gone in so far. You've got to remember, Jim, this is an enormous moment for the people of China. This is probably the biggest international event in their history.

Now, the official marking of the one-year ceremony will take place behind me in Tiananmen Square. It's only about a half a mile from where I'm standing, directly behind me. A lot of work has gone in there as well around the countdown clock, counting down the months, the weeks, the days, the hours, even the seconds to when the Olympic flame will be lit in Beijing.

It all started, of course, back in 2001 when Beijing was awarded those games. And Kristie Lu Stout has been looking at the extraordinary progress that has been made since then and also looking at some of the issues that the authorities are facing as the eyes of the world turn on to Beijing.

(BEGIN VIDEOTAPE)

KRISTIE LU STOUT, CNN INTL. CORRESPONDENT (voice over): This is Beijing on an Olympic high, just moments after winning the bid for the 2008 games. Six years ago, this epic celebration was too wild for even the police to control.

But no matter, this was a government-backed party. Beijing pulled out all the stops to get the games. The first ever to be held on Chinese soil.

(On camera): Back in 2001, it was thought that China would use the Olympics as a way to mark its debut on the world stage. But China is already there. It's a member of the United Nations Security Council. It's a rising military power in Asia. It's also the world's fastest-growing economy. So, the Olympics won't be China's coming-out party, but a chance for the world come to Beijing.

(Voice over): And this is what they'll see. An other worldly landscape of glass-and-steel structures. China is sparing no expense to build stunning stadiums with many projects ahead of schedule. But less successful have been attempts to clean the air, thanks to dusty building projects and cars clogging roads, the air remains very polluted.

Chinese leaders are also scrambling to stem a major safety crisis. The former head of China's food and drug administration was put to death for taking bribes to approve untested medicines.

The "South China Morning Post" in Hong Kong says that China, fearing another scandal, is clamping down on food-safety reports. But the Chinese government says such talk is baseless. And in the past few days, it has organized visits and interviews on food safety for overseas and Chinese media. When Beijing won its bid, some believed the Olympics would bring more freedoms to China. But critics say that has not happened.

JASPER BECKER, AUTHOR: There's no press freedom here. There are no public consultations on these matters, infrastructure, projects. People are still being moved forcibly -- moved to make way for many of these big building projects. And, you know, a lot of the people who are angry at the Chinese government are being pushed out of the way, and are not really being allowed to voice their concerns.

STOUT: China has also been accused of turning a blind eye to atrocities aboard. Hollywood celebrities and the human rights group Amnesty International condemned China's trade relationship with Sudan because of the mass killings in Darfur, going so far as to call for Olympic boycott. Beijing has denounced these efforts to link the games with it's foreign policy. Jin Yuanpu is a professor of Olympic Studies at People's University.

JIN YUANPU, PEOPLE'S UNIVERSITY (through translator): I really don't think this is an issue. Chinese people have so much hospitality, they want to be friendly to the world and get on well with other countries. We don't criticize, we just do our own business well.

STOUT: Talking to people here, you get a sense that everyone wants to do their part for Olympic success. But in the end, the games won't be judged by these smiles alone. Kristie Lu Stout, CNN, Beijing.

(END VIDEOTAPE)

STEVENS: Kristie, there, was touching on a few tender points for the government here in Beijing, Jim, about, you know, things like pollution, things like what's happening with the quality of the air. We heard a press conference a little earlier this day from the organizing committee. And they are at least admitting that they still have issues, big issues, to sort out. But they say they're confident it will all be sorted out by this time next year, Jim.

CLANCY: You know, if you can, give us a little bit better idea. Anybody who has been to Beijing, shares some of the concerns with the International Olympic Committee. Just about that one issue, air pollution.

STEVENS: Yeah, it is truly an enormous issue in not only Beijing, right across the country, but here in Beijing obviously it's taken on a particular focus because of the games. I flew in today, Jim, and you land at Beijing airport, and it looks like fog in the air. And just a normal morning fog. But that fog hasn't lifted by 4:00 in the afternoon.

And there's a cocktail of industrial output from factories, dust from construction, enormous construction here in the city. And, of course, pollution from vehicles, millions of cars, thousands of new cars every day coming on to the roads here. So you've got this real issue which is the focus, the main focus for certainly for the athletes, and certainly for the organizing committee to deal with.

A lot of pressure on the committee to get that sorted out. It's interesting that the pressure at the moment is very much on the government to get things right. For the athletes, it's a bit of a different story. They're getting a very low profile a year out. They're training obviously very hard. And I was lucky enough to catch up with a -- with a red-hot favorite for a gold medal in the diving event. And this is her story.

(BEGIN VIDEOTAPE)

STEVENS (voice over): They are the best of the best. An elite within an elite. In a country where Olympic sports men and women are a source of enormous national pride, China's divers are at the very top. Six gold medals out of a possible eight in Athens in 2004, five in Sydney, four years earlier. And this is their undisputed star, Guo Jingjing. The Athens Olympics double gold medalists and the red-hot favorite for more gold medals in Beijing in 2008. CNN was given rare access to her in Beijing, as she prepares for her fourth and final games.

GUO JINGJING, OLYMPIC DIVER (through translator): I was planning to retire after the Athens games. But because Beijing won the 2008 games, I really wanted to have one last try. It would be very exciting in front of my home, my home crowd, so the feelings for these games is definitely different.

STEVENS: Her day begins and ends here. This unremarkable dormitory in central Beijing which is now home to most of China's top athletes. We weren't allowed inside.

GUO (through translator): I usually get up at 6:00 a.m. and then start to do running and other morning muscle exercises by myself. Then, I will be back for breakfast at 7:00 a.m. At 8:30 I will be here at the pool to start my training exercises and head back for lunch and a nap at 11:30. Then it's back out here for training until 6:00, followed by dinner and then bed by 10:00 p.m.

STEVENS: With still one year to go before the games, she says she's training seven days a week. There's virtually no time for family or friends.

GUO (through translator): It is a hard time, but it is our job. As I've chosen to be a diver, I have to keep the schedule, even though it is tough.

STEVENS (on camera): In Athens in 2004, China finished second on the gold medal table with 32, just three fewer than the United States. Now, here in China, it's virtually expected that comes next year, they'll top that medal tally. And that's putting a lot of pressure on people like Jingjing.

(Voice over): But this 25-year-old veteran is used to pressure. She's been training since she was just seven years old, when she was selected from a swimming class to be a potential diving champion. In some ways her entire life so far has been leading up to the Beijing games of 2008.

In the new China, Guo Jingjing is already cashing in on her popularity. She's dabbled in modeling and has been endorsing products ranging from Red Earth beauty products to food to Coke. Her actual earnings are a closely kept secret. But it's estimated to be several million dollars. But she only gets to keep half of that. By order of the state, which still controls most aspects of her life, she must share the other half with her coach, her colleagues in the diving team, a state sporting fund, even her home province of Hebei gets a slice.

But for the moment thoughts of money are only in the background. Her immediate aim is gold in Beijing. And the focus is on training.

GUO (through translator): I hope I win another gold. It is my goal. Still, I have to work hard to get there.

(END VIDEOTAPE)

STEVENS: One additional incentive for Guo Jingjing could be the fact that she could earn up to $10 million if she does win gold in Beijing. The following 12 months she could be worth that much in endorsements. So a nice little earner if there if she wins gold.

Jim, back to you.

CLANCY: Fascinating story. Andrew Stevens, Kristi Lu Stout, our team there in Beijing are going to be with us more this week looking forward to what is going to be a massive event. A very important event for the people of China. The whole world will be watching.

GORANI: All right, a man who is often at the top of the rim and one of China's most famous Olympians is on top of the world right now.

CLANCY: Chinese basketball star Yao Ming wed long-time girlfriend Ye Li in Shanghai on Monday.

GORANI: Well, some 70 family members attended the ceremony, which has been shrouded in secrecy. The couple will head to Beijing for Wednesday's Olympic festivities.

CLANCY: I don't know how keep him under wraps. We don't know if they plan on having a child but with Yao measuring in at 6.2 meters and Ye 1.9 meters, it's a safe bet that their kids are going to be...

GORANI: 1.9? or 1. -- what, 1.90? Yeah!

CLANCY: Yeah.

GORANI: That's 6'3". His fiancee is 6'3". That is very tall for a woman.

CLANCY: Very tall, for a woman. The kids are going to be tall.

GORANI: They will be.

CLANCY: They'll be playing in the NBA.

GORANI: It's a little early. All right. A short break, still ahead.

CLANCY: An alarming number of American-supplied weapons now missing in Iraq. More details of that story coming up ahead.

GORANI: And, later, it was a kiss seen around the world at the end of World War I in a very famous photo. We'll look at the forensic work that helped determine the identity of this jubilant sailor. Stay with us.

(COMMERCIAL BREAK)

GORANI: Welcome back, everyone. You're with YOUR WORLD TODAY.

U.S. government auditors are investigating the Pentagon's record keeping of Iraqi military equipment. Now, a report found pretty sloppy records and accounting discrepancies, mainly, and at least 190,000 missing weapons provided by the U.S. to the Iraqi security forces. Where are they? Why did they go missing?

Let's get some analysis. "Washington Post" reporter Glenn Kessler joins us now. He wrote about this for "The Post" today.

How could these weapons, almost 190,000 AK-47 rifles and pistols, really no one knows where they are. How could this happen?

GLENN KESSLER, "THE WASHINGTON POST": It gets down to sloppy record keeping. In 2004 and 2005, the U.S. military was desperately trying to build up the Iraqi security forces. And they passed out weapons as fast as they could and they didn't really keep track of where they were going, or who has them.

GORANI: Sure. So, really, we don't know where they are. So, it could be bad record keeping. In other words, they could still be in the hands of Iraqi security forces, but they're just not accounted for, or do officials think they slipped out of the Iraqi security force control and they might be used by those who are fighting against the Americans in Iraq?

KESSLER: Well, that's clearly what has happened in some cases. They don't know the extent of the problem. But there are numerous instances of Iraqi security forces receiving weapons and then turning -- changing sides and joining up with the insurgents. But the number, the 190,000, is far higher than what any auditors have found before and that's what's so disturbing.

GORANI: All right, so the tragic irony for the Americans is some of the weapons that they provided to Iraqi security forces are being used to kill American troops.

KESSLER: You're right.

GORANI: Whose responsibility would it be to track the weapons once they are in the hands of the Iraqi security forces? Is it the Pentagon or is the Iraqi government?

KESSLER: The Pentagon is supposed to keep careful records of all the security numbers, who they gave it to, and who has it. It's really their responsibility.

GORANI: So it is the Pentagon. Usually train-and-equipment programs are run by the State Department. In this case it was the Pentagon. Why? And how does it make this particular program different?

KESSLER: Well, the Pentagon wanted what they said, what they told the GAO -- the accounting firm -- group, that looked into this -- they said they wanted as much flexibility as possible. Now, the GAO has not found this problem with the State Department-run programs. They did find it in this case. It appears the Pentagon was either was passing out weapons too quickly, or with not enough care to keep track of the weapons. GORANI: So have things changed, really? The Pentagon hasn't disagreed with the GAO report. They haven't contradicted it. They said they're running their own investigation. But have they changed anything in recent months?

KESSLER: Well, they have. They have since the -- since these weapons were passed out in 2004 and 2005, in 2006 they tried to keep better track. The GAO found still continuing problems. And they say the whole database management system is really antiquated. You need three computer screens lined up against each other in order just to track one line of weapons. And the Pentagon says they're trying to get a better computer system in place.

GORANI: All right, Glenn Kessler, "Washington Post" reporter. Thanks so much for joining us here on YOUR WORLD TODAY.

KESSLER: You're welcome.

CLANCY: When you think of the size of it, that is enough arms to start a war in practically any --

GORANI: 190,000 rifles and pistols?

CLANCY: -- country in the world.

GORANI: Sure. Yes.

CLANCY: All right.

At the end of World War II, there was -- well, there were a lot of sailors that said were the world's greatest kisser. Now the mystery has been solved thanks to science.

GORANI: One might be able to claim he was the world's greatest kisser. The identity of World War II's kissing sailor is revealed. Maybe it's revealed. Stay with us.

(COMMERCIAL BREAK)

GORANI: Well, the world-famous photograph and the world-famous kiss that prompted a 62-year mystery, well, that mystery --

CLANCY: It may have been solved, Hala, thanks to science. May have been.

GORANI: May have been. Stephanie Watian (ph) has the story.

(BEGIN VIDEOTAPE)

STEPHANIE WATIAN (ph), CNN INTL. CORRESPONDENT (voice over): Houston's Glenn McDuffie was in Times Square when he found out World War II had come to an end. Reason enough for the sailor to celebrate.

LOIS GIBSON, HOUSTON POLICE FORENSIC ARTIST: He lost it. He was jumping around whooping and hollering. And this girl put her arms out like this, wide open. And she had great, big full lips. And he just came over to her and kissed her.

WATIAN (ph): For years people have wondered about the mysterious sailor. Who is he? Where is he now? Questions Lois Gibson says she has answered. As the forensic artist for the Houston Police Department, Gibson is a pro at identification.

GIBSON: The bones, once you reach maturity, the skin just goes south. So, the bones of the skull are the same.

WATIAN (ph): After numerous measures, including his wrists, knuckles, forehead and ears, Gibson is certain Houston resident Glenn McDuffie is the mysterious sailor in the famous "Life" magazine photograph. A claim he has made for years.

GIBSON: The hairline, he's lost hair, he's older. Give him a break. Of course, he did. The ears, the eyebrows, that little wrinkles that are starting here, are here, too.

WATIAN (ph): There were other clues as well.

GIBSON: When he talked to me, he's the only one that knows the names -- full names -- of these other two sailors.

WATIAN (ph): Gibson says she has always wondered why the sailor's arm seemed hooked in an odd manner. McDuffie had the answer. He saw a photographer heading his way and moved his hand so the nurses' face would show.

GIBSON: Glenn McDuffie kissed the nurse. Glenn McDuffie is the swabbie that kissed the nurse and celebrated that the war was over.

(END VIDEOTAPE)

CLANCY: All right.

GORANI: Who is the woman is what I want to know. Is she going to come forward and claim her part of this whole fame, the fame associated with this?

CLANCY: We shall see.

GORANI: Anyway, well, apparently solved.

CLANCY: That has to be it for our report this day. I'm Jim Clancy.

GORANI: And I'm Hala Gorani. Stay with CNN. There's a lot more to come, after this.

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