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CNN NEWSROOM

Will Senator Larry Craig Resign?; Senator John Warner Calls It Quits

Aired August 31, 2007 - 15:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Six days ago, Larry Craig had a secret and a U.S. Senate seat he could count on, probably as long as he wanted to. Now the secret's out and the Senate career may be slipping away.
Hello, everyone. I'm Kyra Phillips at the CNN Center in Atlanta. Don Lemon is off. You're live in the CNN NEWSROOM.

He insists he did nothing wrong and says his guilty plea was a mistake. But Idaho Senator Larry Craig's attempts to explain his arrest in an airport sex sting apparently aren't resonating with his fellow Republicans. Republican sources are telling CNN that Craig may resign perhaps as soon as today.

Our Dana Bash has the latest now from Boise.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Pressure is mounting on Senator Larry Craig to resign from the U.S. Senate. In fact, the Republican leader in the Senate used pretty harsh words. He called Senator Larry Craig's actions unforgivable.

And Republican sources here in Idaho and back in Washington say that all indications that are Senator Craig is intending to or at least may be moving towards resigning his seat.

But they also caution that that kind of mounting pressure that he is getting could actually backfire. In fact, the Republican National Committee had a statement ready to go on Thursday saying that Senator Craig should resign, but they held back in doing it, in part, because they got indications from Republicans here in Idaho that that was already in the works, but also because of the idea that it could backfire.

One Republican source familiar with the discussions told CNN that that kind of move would have been -- quote -- "explosive," because this is a decision that people here in Idaho are making clear to Washington, the national party, that Senator Craig needs to make on his own. It's a decision that is very, very hard for him. He has represented this state in Washington for a quarter century. He's been in public service since he was 28 years old. So, this is not an easy decision.

He understands the pressure that is on him, and so do his fellow Republicans here in Idaho. So, we are awaiting word to see what happens with Senator Craig and his future. But all indications are that he will likely not be going back to the U.S. Senate.

Dana Bash, CNN, Boise, Idaho.

(END VIDEOTAPE)

PHILLIPS: After five terms on Capitol Hill, Senator John Warner says it's time to go. Just about an hour ago, the 80-year-old Virginia Republican announced his retirement, saying he won't run for reelection next year.

Warner is the ranking Republican on the Senate Armed Services Committee. He's been in the office 28 years, the second longest- serving senator in Virginia history behind Harry F. Byrd.

Warner will be a guest today in "THE SITUATION ROOM," 4:00 p.m. Eastern right here on CNN.

Yet another high-profile departure announced at the White House today. Press Secretary Tony Snow will leave that post in two weeks. Snow is being treated for colon cancer but he says his reason for leaving is financial. A former conservative pundit says he took out a loan when he went to work for the government. He says that money has been spent. So, he now needs a new job to pay the bills. President Bush says, Snow will be missed.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Tony Snow informed me he's leaving. And I sadly accept his desire to leave the White House. And he will do so on September the 14th.

He has -- it's been a joy to watch him spar with you.

(LAUGHTER)

BUSH: He's smart, he's capable, he's witty. Capable of -- he's able to talk about issues in a way that the American people can understand.

And I don't know what he's going to do. I'm not sure he does yet, either. But whatever it is, it's going to be two things. One, he will battle cancer and win. And secondly, he will be a solid contributor to society.

(END VIDEO CLIP)

PHILLIPS: Snow will be replaced by his deputy, Dana Perino.

An in-flight fright for four members of the U.S. Congress aboard a military plane over Baghdad. They dodged a bullet last night. And that's an understatement. An Air Force C-10 came under rocket fire while after taking off from Baghdad. Seated in the back, Senators Richard Shelby, Mel Martinez, James Inhofe, and Representative Bud Cramer.

The flight crew took evasive action, deployed flares, and flew on to Jordan safely. The VIPs were shaken up, but acknowledge it's something military men and women face all the time and every day in Iraq.

A high-level huddle today at the Pentagon, four-star generals, a whole constellation of them, behind closed doors with their commander in chief.

Let's get right to CNN -- right to the Pentagon and CNN's correspondent, Barbara Starr -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Hello to you, Kyra.

Well, President Bush spent over an hour today in the tank, that secure conference room here in the Pentagon, with the entire Joint Chiefs of Staff, the head of the Army, the Navy, the Air Force, and Marine Corps, as well as the chairman.

What he heard from them, by all accounts, is that the troops right now have high morale, they're in the fight in Iraq, but they can't keep it up forever. You know, the troops are on a 15-month tour of duty, and they are getting tired and exhausted. The Chiefs, which have the responsibility for ensuring that the troops are ready, trained and equipped for whatever might arise, are getting increasingly concerned that Iraq is simply draining the force of all of its energy.

President Bush knows the Chiefs are concerned about that. And that was topic number one today, to get an update from the Chiefs about the troops, their families, their health, are they fully trained, do they have the equipment they need, how is their morale, how are they feeling about things.

And most of the troops that we talk to say their morale is high, but it's that 15-month tour of duty on the ground in Iraq that is concerning the troops and concerning military families, quite understandably, the most. That is the thing that the Chiefs want to see end -- Kyra.

PHILLIPS: All right, Barbara Starr, live from the Pentagon, thanks so much.

And we're just getting video in. Karl Rove, as you know, prominent White House figure, left today. We see him leaving the White House just moments ago. Take a listen.

(BEGIN VIDEO CLIP)

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

PHILLIPS: As you know, he was the president's longtime political adviser. He's been controversial, to say the least. And he's widely credited with masterminding Mr. Bush's rise to the presidency.

But Democrats accuse him of injecting politics where it just doesn't belong. As you know, Rove announced his departure plans earlier this month. Just moments ago, there he is seen leaving the White House, to a number of people crowded around cheering him on.

We're getting new details of two terrorism indictments. Two Egyptian students being held in South Carolina.

For the very latest on that, let's go to Miami and CNN's Susan Candiotti -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Kyra.

The latest is coming from the college they go to school, these two young men. The University of South Florida telling them that they are provisionally suspended on the suspicion that they were possessing explosive devices.

Here's what has happened. It all started back on August the 4th in South Carolina, Goose Creek, when these two students were pulled over allegedly for speeding. And at the time, authorities there, the sheriff's office said that they found some what they described as pipe-bomb-like devices in their vehicle. A long investigation followed. They have been held ever since in jail pending the outcome of this investigation.

And now a federal grand jury in Florida, where they attend school, has indicted these two young men on two counts. Both are charged with transporting explosives across state lines. And one of the two is also charged with the "teaching and demonstrating how to make and use explosive material."

Now, both of these young men if found guilty face up to 20 years in jail in one circumstance, and 10 years on a different charge as well. So, for the time being, they are being held in jail, in South Carolina, before they are expected to be transferred to Florida.

Now, all along, we stress that these two young men have said that these were simply homemade fireworks. Now, they are being charged, however, with being in possession of explosive devices. As we learn more, we will pass it on to you.

And we do expect a news conference, by the way, from the sheriff in South Carolina to take place just about now. When we find out what he has to say, we will let you know.

PHILLIPS: All right, Susan Candiotti, thanks so much.

Now to Lansing, Michigan, where police say they have caught a suspected serial killer who has had the city on edge for weeks.

Lauren Zakalik of Michigan affiliate WILX has the details.

(BEGIN VIDEOTAPE)

LAUREN ZAKALIK, WILX REPORTER (voice-over): Lansing police say a serial killer who has been terrorizing the city since July is behind bars. They say he murdered five Lansing women in five weeks and brutally assaulted another. Three of those attacks were this week.

Chief Mark Alley says this is a relieving day to say the least for the city of Lansing.

MARK ALLEY, LANSING POLICE CHIEF: I'm pleased to announce that we have arrested a serial killer in connection with the recent homicides that occurred against women in the city of Lansing.

ZAKALIK: Police had refrained from calling the person a serial killer until Thursday, when they had enough evidence to link all the cases together, the first, community activist Ruth Hallman's murder. Then Deborah Cooke was found murdered in Hunter Park, and Debra Renfors was killed in Old Town.

This week, Sandra Eichorn was found dead in her home, and Karen Delgado-Yates murdered, too. A sixth woman was assaulted by the serial killer, but survived.

In the press conference Thursday, they spoke of how integral that victim has been in arresting this man, who was, indeed, the person we released in the sketch earlier this week.

UNIDENTIFIED MALE: If it weren't for our victim on Jones Street, we wouldn't possibly be here today.

ZAKALIK: As the city mourns the five women lost, neighbors will stand vigilant once again against crime in the city.

(END VIDEOTAPE)

PHILLIPS: And the suspect's name has not been released. He could be charged later today, we're told. Police are looking into whether he was also connected to a series of assaults in 2003.

Well, the battle was supposed to take five days. It lasted five weeks, and claimed more than a dozen Marines. Coming up in the CNN NEWSROOM, Tom Foreman previews "Anvil of God," a special report on the fight for Fallujah.

And suspensions at the WWE on the heels of a steroid investigation, the latest from inside the ring straight ahead from the NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Three twelve Eastern time. Here are three of the stories we're working on in the CNN NEWSROOM.

Speculation is growing that Senator Larry Craig will resign, possibly today. The Idaho Republican has been fighting for his political life after pleading guilty to disorderly conduct in an airport men's room sex sting.

White House Press Secretary Tony Snow will leave that job two weeks from today. Snow has been battling cancer, but recently said he would be leaving anyway for financial reasons. Gay marriage may get a higher profile in the presidential race with the Iowa caucuses just months away. A judge yesterday overturned that state's ban on same-sex marriages. And today he issued a stay of his own ruling, but not before two men were married.

The end of an era in Virginia -- just a short time ago, five-term U.S. Senator John Warner announced that he will not be running for reelection. You saw it live right here on CNN.

CNN senior political correspondent Candy Crowley just spoke with the senator. She joins me now from Washington.

Tell me about the conversation, Candy.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Hi, Kyra.

Well, First things first. I told him I would be remiss before talking about his retirement if I didn't ask him about the Larry Craig situation. And he said, look, I think the Senate leadership has done the right thing, taken the right steps by calling for the Ethics Committee probe.

I asked a couple of times, do you think he should resign? And he wouldn't bite.

As for his decision not to run for reelection, the senator seemed to suggest and said several times, look, this is a job that requires, that is so dynamic and so physically taxing, that it requires you 24/7. He would be 82 by the time he started to run again. That would make him 88 by the time the end of that next term. He really felt that it was just time to go and sort of step aside for another kind of leadership, a new generation of leadership, as he said. It really is the passing of an era.

He also said that he had mixed emotions, but I asked him if he would miss it. He said, listen, you miss everything, but you have just got to keep going.

He also talked a little bit about that he had a sense of satisfaction about his career, that he wants to look forward to maybe doing something in the -- philanthropy, something -- some sort of philanthropic organization.

So, he has planned ahead, obviously being with his kids and his grandkids. I asked him if he thought at all about the fact that now what he's doing really is leaving that Virginia seat up for grabs, that a Democrat could well take his seat, which seemed at least safe before he announced that he wouldn't run for reelection.

And he said, look, that was a factor, but I have worked with, you know, Democrats. I have worked with Republicans. You take what the voters give you, and then you work with it.

PHILLIPS: So, what do you think he will be most remembered for, besides being married to Elizabeth Taylor?

(LAUGHTER)

CROWLEY: Yes, there is that. And that will feature prominently always in those bios.

But, look, this is a man who really started his career with his critics saying, oh, so he's sort of a dilettante. He was married to an heiress at that time and then he married Elizabeth Taylor, as sort of somebody that wasn't all that serious.

He grew into someone who has, in fact, been taken very seriously. He's a leading voice on defense issues. It's why when he said he thought the president ought to withdraw 5,000 or so troops by the end of the year, everybody stood up and listened to that. So, he has become an expert on defense issues, a very serious man, taken very seriously on Capitol Hill.

PHILLIPS: Do you think that could be one reason -- well, maybe another reason why he is not going to go for the spot again, due to -- he's going up against the president, specifically, on the war?

CROWLEY: Well, he's always had that sort of streak to him, an independent streak, that, in fact, would -- puts him at odds with the leadership sometimes.

I asked him if he thought the war was lost. I said, do you think really that when the Petraeus report comes out that, in fact, you're going to want to pull the troops out? Do you think we're losing this?

And he said, I don't. I simply think the government, the Iraqi government, is not pulling its weight. And if we withdraw some troops that would, you know, wake them up.

So, he doesn't think the war is lost. But the other thing he said, which I thought was really interesting, was that now, when he talks, people can't say, oh, that's just all politics, because he's taken himself out of that political mix. He says he feels very deeply about the situation in Afghanistan and Iraq, said he even waited to make this announcement while finishing his 10th trip to Iraq.

So, that's an issue he's going to focus on. Certainly, the White House knows that this is a man who speaks his mind because he has before and he will continue to do so.

PHILLIPS: Our Candy Crowley, thanks so much.

CROWLEY: Sure.

PHILLIPS: Warner will be a guest today in "THE SITUATION ROOM" at 4:00 p.m. Eastern right here on CNN.

Straight ahead, millionaire dreams can come true. Could it happen to you? Well, a lot of eyes are on the Mega Millions prize. We have got a wealth of information, straight ahead from the CNN NEWSROOM.

(COMMERCIAL BREAK) PHILLIPS: Well, lottery lines are sure to be long again today. The pot for tonight's Mega Millions drawing is a whopping $330 million. That's the second largest in Mega Millions history. The chance of winning is just one in 176 million, including that ticket you just saw, hoping that our employee wins.

But a single winner who takes the lump sum will get more than $194 million. Mega Millions is played in 12 states, California, Georgia, Illinois, Maryland, Massachusetts, Michigan, New York, New Jersey, New York, Ohio, Texas, Virginia, and Washington.

(BUSINESS REPORT)

PHILLIPS: Well, Republican Senator Larry Craig under growing pressure to step down. Ahead, why Craig's own party is turning on him and why Democrats are keeping mum, at least for now.

An empty street in Iraq's Triangle of Death. The U.S. troops make their move, tracking a shadowy enemy, "Anvil of God," a riveting account of a historic battle.

But first, an all-hands effort to fight obesity. In this case, both the young and the old are on board. And they're seeing results.

And Dr. Sanjay Gupta has this "Fit Nation" report from just outside Boston.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Somerville, Massachusetts. Population, 77,000. It's a modern-day town with modern day problems, including surging rates of obesity.

JOE CURTATONE, MAYOR OF SOMERVILLE, MASSACHUSETTS: A third of our population is foreign born so we have our challenge. Somerville is a very dynamic city and we don't have a lot of land area, so we have to be very strategic in how we encourage active living.

GUPTA: Four years ago, Tufts University nutritionists, along with city officials put the community on a diet, to help its citizens, especially children, keep their weight down. Restaurants offered healthier foods and smaller portions. Bike paths upgraded. And school menus added more fruits and vegetables. And people encouraged to walk or bike to work. Kids, like Jonathan Lentini were told to get out and play, and watch what they ate.

JONATHAN LENTINI, SOMERVILLE STUDENT: Like what do I think is really good? And if it's healthy or not.

GUPTA: And -- it worked. After studying almost 1700 Somerville elementary school kids over a year, researchers discovered children in this Boston burb gained weight at a healthy rate, while youngsters their age in two nearby towns gained more.

CHRISTINA ECONOMOS, PROFESSOR OF NUTRITION, TUFTS UNIVERSITY: All children are gaining weight as they grow. What we want to do to prevent childhood obesity is prevent excess weight gain.

GUPTA: Since the study ended the city has kept up it's healthy attitude. Researchers feel if other communities follow the same steps as Somerville they, too, could help their future generations avoid the obesity epidemic.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: Idaho Senator Larry Craig hasn't been seen in public since he held a news conference to explain his arrest and guilty plea in an airport sting, sex sting. But, to put it mildly, the incident has jeopardized Craig's career. Republican sources tell CNN, Craig may resign, possibly as soon as today.

Our Candy Crowley has more on the growing pressures from Craig's own party and peers.

(BEGIN VIDEOTAPE)

CROWLEY (voice-over): To measure the trouble Larry Craig is in, listen to the delicate dance of a friend and supporter.

GOV. BUTCH OTTER (R), IDAHO: You never really un-ring the bell. And the bell has been rung. And, so, as we go forward, I suspect there's going to have to be additional consideration by Larry and his family on where exactly they're going.

CROWLEY: Consider, too, that Nevada's John Ensign, in charge of the committee dedicated to electing Republican senators, told the A.P. if he was in Larry Craig's shoes, he would resign.

The senator has not been seen publicly since the "I did nothing wrong" statement. Wherever he is, he woke up this morning to find that his home state newspaper wants him gone.

"If Craig wishes to keep his secrets," wrote "The Idaho Statesman," he may do so as a former U.S. senator. "His stunning misstep has now cost him his viability and his credibility. He must now step aside."

It is water torture of the political sort.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: My opinion is that, when you plead guilty to a crime, then you shouldn't serve. I don't try to judge people. But in this case, it's clear that it was disgraceful.

CROWLEY: John McCain thinks Craig should resign.

Ditto Michigan Republican Congressman Peter Hoekstra.

REP. PETE HOEKSTRA (R), MICHIGAN: Right now the facts are very clear. He pled guilty to what I think is a pretty ugly crime.

CROWLEY: Minnesota Senator Norm Coleman, in a press release: "Senator Craig pled guilty to a crime involving conduct unbecoming of a senator. He should resign."

Drip, drip, drip, and no end in sight.

(BEGIN AUDIO CLIP)

DAVE KARSNIA, INVESTIGATIVE SERGEANT: You have the right to remain silent. Anything you say can and will be used against you in a court of law.

(END AUDIO CLIP)

CROWLEY: The release of audiotapes of a U.S. senator being questioned by police about what went on in a public bathroom only gives the story more oxygen.

(BEGIN AUDIO CLIP)

SEN. LARRY CRAIG (R), IDAHO: Did I slide them too close to yours? Did I -- I looked down once your foot was close to mine.

KARSNIA: Yes.

CRAIG: Did we bump? You said so. I don't recall that, but apparently we were close.

(END AUDIO CLIP)

CROWLEY: A spokesman for Craig said only the tapes speak for themselves.

With Republicans in turmoil, no need to chime in here, so Democrats are in avoidance mode.

Hillary Clinton kept herself occupied as questions were thrown at her. And Chuck Schumer, never one to run from the camera, didn't want to talk about whether a Craig resignation would put ruby red Idaho in play for a Democrat in 2008.

SEN. CHARLES SCHUMER (D), NEW YORK: Again, to me, we'll have to -- we'll -- we'll discuss that in future weeks, not right yet.

CROWLEY: In truth, Idaho is so Republican, probably the only way a Democrat could win the Senate seat would be if Craig were to run again.

On the campaign trail, only McCain has called for Craig's resignation. But all Republican candidates seek distance.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Well, there's no question but that -- that I and other leaders of this country, and parents across this country, are -- are disappointed and find conduct like that which is alleged here as being disgraceful. CROWLEY: Until Monday, Larry Craig headed Mitt Romney's Idaho effort. In politics, sometimes it's not political opponents who do you in. It's your friends.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: And CNN.com sounding off and getting lots of e-mails from you about Senator Larry Craig's arrest in the sex sting.

Here's just a few of those e-mails.

Jas writes: "Where are all the calls for the resignation of Senator Vitter of Louisiana, who admitted to being on the D.C. Madam's client list? Is this just another example of social homophobia?"

Andrew from Idaho says: "As a registered voter from Idaho, I was shocked at the news of Senator Craig and his supposed crime. I don't know if he's gay and I don't know if he tried to solicit sex from the officer. I do know that he made a mistake by trying to cover it up and that will be his downfall."

And Sean writes: "Would the Republican Party be pushing for Craig's resignation if the Idaho governor were a Democrat, who would then presumably appoint a Democrat to fill the position? I doubt it."

And if you'd like to voice your opinion, log on to CNN.com and put it right there.

Fallujah, Iraq -- a city long synonymous with violence and danger and death.

CNN's Tom Foreman knows that.

His special one-hour documentary on a costly campaign there runs tonight on CNN.

I saw a little bit of it this morning.

Pretty impressive, Tom.

TOM FOREMAN, CNN CORRESPONDENT: Well, thanks very much.

It's -- really, these young people who went over there, the

Thank you very much.

Really these young people that went over there, the 1-8th Marines Bravo Company -- the truth is all of our troops over there -- but these guys in particular, they are very, very impressive because in this battle, the biggest single battle of this war, the one time insurgents tried to stand en masse and hold land, these are the guys who proved that they would not be able to stop U.S. forces. Take a look.

(BEGIN VIDEOTAPE)

FOREMAN (voice-over): The cultural center a half mile in is a stronghold to be taken and used as an anchor for Bravo's charge. As they approach at sunrise, Sergeant Lonny Wells is near the front. He's in his late 20s, always calm, the younger Marines naturally follow him.

UNIDENTIFIED MALE: He's been around a while. He's older. He knows what he's doing.

FOREMAN: The wide road in front of the cultural center is comparatively quiet.

UNIDENTIFIED MALE: Running this way.

FOREMAN: Sergeant Wells starts running across and the dawn explodes.

(VIDEO OF BATTLE IN FALLUJA)

UNIDENTIFIED MALE: There were bullets coming in from every side of us -- from in front of us, from the east and west and then behind us. It looked, sounded and felt like a nightmare.

FOREMAN: The heaviest interlocking fire is coming from a nearby mosque and a building down the street. Shots, however, are all around, so Bravo cannot sit. The center must be taken. But in the middle of the street, Lonny Wells is down.

UNIDENTIFIED MALE: The first sign of combat is extremely confusing.

UNIDENTIFIED MALE: Back up.

FOREMAN: Joel Chaverri, whose job is to record the battle for the military, sees Wells fall. And as he lifts his camera, he sees a gunnery sergeant run to Wells' rescue, a medical corpsman not far behind. The gunny is shot and thrown several feet. The corpsman is hit, too.

UNIDENTIFIED MALE: It was like a movie. It was extremely surreal. I didn't think. You don't think. You don't have time to think. You just react.

(END OF VIDEOTAPE)

FOREMAN: Again, I can't say enough about these young men of the 1-8 Marines Bravo Company or, frankly, about my producer, Amanda Townsend, who, as you can see, has filled this with previously unseen images, extraordinary inside looks at how this battle developed as our troops went in and crushed what really was a physical capital of the insurgency full of car bomb factories, hostage holding pens, torture chambers, places where they were forging documents. This was an area the insurgents really did not want to lose and was taken from them.

PHILLIPS: Why look at this battle now, Tom? FOREMAN: I think you look at this battle now because you have to look at this battle. We're at a critical time in this war -- a time when we, as a nation, are asking ourselves, what are we fighting for, can we achieve it, what's in front of us?

The battle of Falluja is an extraordinary point in this war -- a moment where we showed what we really could do head-to-head in military conflict with these people. But it also underscored many of the social and political difficulties in this country.

If you want to understand what's happening in Iraq today, I think you have to look at the battle of Falluja and try to understand what the men of Bravo went through for our country and what that might mean for our future.

PHILLIPS: Tom Foreman.

We really look forward to it.

Thanks.

I encourage everyone to tune in -- 10:00 p.m. Eastern tonight. Tom Foreman's full special report, "Anvil of God: The Battle for Fallujah," hosted by Anderson Cooper. That's tonight, 10:00 Eastern, only on CNN.

Straight ahead, remembering a princess -- hundreds of people gather in London to pay tribute to Princess Diana a decade after her death.

(COMMERCIAL BREAK)

PHILLIPS: Memories of a fun loving and adored mother, a compassionate woman who died tragically and much too young.

It's been 10 years since Princess Diana was killed in a car crash in Paris and the Bishop of London says it's time to let her rest in peace.

CNN's Richard Quest with more on today's tribute.

(BEGIN VIDEO TAPE)

RICHARD QUEST, CNN CORRESPONDENT (voice-over): Ten years on and this was a chance for Princes William and Harry to show where Diana's legacy is concerned, they are in charge.

From the door of the chapel, where they welcomed the guests, including their grandmother, the queen, to the readings and the service, William and Harry took center stage in front of a congregation including celebrities such as Elton John and Lord Attenborough.

Harry remembered his mother with words we rarely hear spoken by the royals. PRINCE HARRY, UNITED KINGDOM: But we miss her. She kissed us last thing at night. Her beaming smile greeted us from school. She laughed hysterically and uncontrollably when sharing something silly she might have said or done that day. She encouraged us when we were nervous or unsure. She, like our father, was determined to provide us with a stable and secure childhood.

QUEST: The princes wanted today to be a celebration of Diana's life. They also wanted to put to rest the endless speculation over her death.

It was left to the Bishop of London to say, in effect, enough.

RICHARD CHARTRES, BISHOP OF LONDON: Let it end here. Let this service mark the point at which we let her rest in peace and dwell on her memory with thanksgiving and compassion.

QUEST: That's unlikely to carry sway with Mohammed Al-Fayed, whose son Dodi also died in that crash. He held his own moment of silence at his Harrods Department Store in London. He still believes the crash wasn't an accident. He wasn't invited to the memorial service.

Away from the formal proceedings and silences, ordinary people remembered Diana in the way they did 10 years ago -- by leaving flowers at Kensington Palace, her former home, or at the tunnel in Paris where the accident took place.

Whatever the public may feel about how Diana died, in the end, this 10th anniversary will best be remembered for the role played by Diana's sons.

ROBERT JOBSON, ROYAL COMMENTATOR: I thought Prince Harry spoke with eloquence and he was right in what he was saying. He was trying to take ownership of this Diana story.

In the decade since Diana's death, we've had so many stories, so many controversies, this was him saying this is my mother -- with Prince William -- and we don't want this to carry on. We want Diana to rest in peace.

QUEST: In September, 1997, the world reached out its heart to the young princes as they walked behind their mother's coffin.

(on camera): Today we saw two grown princes, confident in their place and determined to ensure the legacy of Diana remains that of the people's princess.

Richard Quest, CNN, Buckingham Palace.

(END VIDEO TAPE)

PHILLIPS: Suspicions in the WWE on the heels of a steroid investigation. The latest from inside the ring, straight ahead in THE CNN NEWSROOM.

But first, a story about a student exchange program for the YouTube generation.

In this week's "Life After Work," CNN's Ali Velshi tells us how one retiree is trying to modernize student exchanges.

(BEGIN VIDEO TAPE)

ALI VELSHI, CNN CORRESPONDENT (voice-over): A picture is worth a thousand words.

PHIL BORGES, FOUNDER, BRIDGES TO UNDERSTANDING: Let's shoot very wide.

VELSHI: And photographer Phil Borges believes kids taking pictures learn value beyond words, through his Bridges To Understanding Foundation.

BORGES: Bridges is a program that connects kids, typically middle school and high school kids in our country here in the USA with kids around the world. And we do it through digital story telling. So we have the kids produce a story about an issue in their community. We make a little multimedia piece of it and they post it on the Web and the two classrooms discuss.

VELSHI: The Bridges program, based in Seattle, connects students in 15 locations worldwide, including Peru, Nepal and, most recently, South Africa. It's a student exchange program for the YouTube generation.

BORGES: What we're trying to do is get kids to build empathy across cultural barriers and to understand one another, to learn with and from each other instead of just about each other, the way we did when we were in school.

VELSHI: Borges isn't new to building bridges. He is a retired orthodontist. But he left dental work behind after 18 years to become a photographer. And traveling the globe shooting portraits of people for his books, Borges found a way to give back.

BORGES: The idea started with giving indigenous people a voice. Let them tell their stories directly. And then, once we started hooking them up with schools here and I learned more about the school system and how little global and international education was going on, that became another motivation.

VELSHI: Ali Velshi, CNN.

(END VIDEO TAPE)

(COMMERCIAL BREAK)

PHILLIPS: One day after a judge threw out Iowa's ban on same-sex marriages, two men got married in Des Moines. Sean Fritz and Tim McQuillan said they wanted to act quickly.

(BEGIN VIDEO CLIP) SEAN FRITZ, MARRIED IN IOWA TODAY: If we don't get it today, the conservative movement will bring a lot of money into the legal appeal process and maybe win in the Supreme Court, and then we won't be able to get a marriage license ever.

(END VIDEO CLIP)

PHILLIPS: At least 21 other same sex couples filled out marriage license applications this morning. But then the judge stayed his own rulings to let the Iowa Supreme Court hear an appeal. The case could have an impact on the presidential campaign, and the Iowa caucuses are just a few months away.

Professional wrestlers falling victim to steroid testing -- it comes weeks after the suicide of wrestling star Chris Benoit, who hanged himself after killing his family with steroids in his system. Some other wrestlers' names turned up in the probe into a Florida pharmacy used by Benoit. Now 10 have been suspended by World Wrestling Entertainment, though none has been charged.

In a statement, the WWE said: "It has been WWE's practice not to release the names of those who have been suspended, but notice has been sent to all WWE performers that names of anyone who was suspended in the wellness policy as of November 1st will be made public."

This morning, CNN spoke with a former professional wrestler and steroid user, who said steroid use among wrestlers is not unusual.

(BEGIN VIDEO CLIP)

DEL WILKES, FORMER PROFESSIONAL WRESTLER: As someone that's been involved with pro-wrestling now for a little over 20 years in some capacity, and based on my experiences, it's very prevalent in pro- wrestling. You can look -- you can look at the guys, you can look at the bodies, you can look at the physiques and still tell that it's still a part of the business even today. And, obviously, with what we've just heard about the 10 wrestlers being suspended, that it's still a big problem.

KIRAN CHETRY, CNN ANCHOR: All right, well, there's like, what, about 150 or more wrestlers within the WWE?

Do you think it's a small problem that's just contained to about 10 or 20, or do you think in some way, shape or form everyone is doing this?

WILKES: Well, I think it's a widespread problem. I don't know that everyone's doing it. There's obviously there some guys -- again, you can tell by looking -- that aren't steroids. So I don't know that everyone's doing it, that it's fair to paint everyone with that same broad brush. But I do think that it is a pretty -- a pretty big problem, a problem that's widespread.

(END VIDEO CLIP)

PHILLIPS: WWE says it now tests wrestlers four times a year for steroids. The first two violations trigger suspensions. After a third, the wrestler is fired.

Even after losing her husband, Coretta Scott King kept the attention of the FBI. Documents obtained by Houston TV station KHOU show the mail of Dr. King, Jr.'s widow was opened, her movements were followed and her speeches attended to glean any possible hint of subversion. Shortly after the death of J. Edgar Hoover, agents reported they turned up nothing and the snooping came to a halt.

Two pregnancies, six babies -- you do the math. Straight ahead in THE NEWSROOM, more on the Ohio mom who's a triple threat every time the stork drops by.

The closing bell and a wrap of action on Wall Street, straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Let's check in with CNN's Wolf Blitzer.

He's standing by in THE SITUATION ROOM to tell us what's coming up at the top of the hour -- hi, Wolf.

WOLF BLITZER, HOST, "THE SITUATION ROOM": Hi, Kyra.

Thanks very much.

We just heard a major announcement from Senator John Warner about his own political future.

We're going to be speaking with the veteran Virginia Republican.

That's coming up in THE SITUATION ROOM.

And why is this man running?

Check it out.

Is he sending a not so subtle message to his Republican competitors?

We're going to find out in today's Strategy Session.

And the former Virginia governor, Doug Wilder, tell us why he thinks Senator Barack Obama may be a better presidential candidate than Hillary Clinton.

All that, Kyra, coming up right here in "THE SITUATION ROOM."

PHILLIPS: All right.

I'm not moving, Wolf.

I can't wait.

They're not just for reminders anymore. Post-it notes are an art form. These I-Report photos tell a whole story. David Alvarez of Leavenworth, Washington used Post-It Notes to create a mosaic portrait of the late musician Ray Charles. Yes, those semi-sticky pieces of paper do tend to fall off sometimes. Well, Alvarez finally got tired of putting them back on and resorted to glue just to hold them in place.

Tim and Victoria Lasita, the parents of 4-year-old triplets, decided to have one more baby. Well, it didn't quite turn out that way. Mrs. Lasita gave birth this week at a Cincinnati hospital and she gave birth again. And then she gave birth again. Yes, the second set of triplets. All three babies are said to be doing well. Mrs. Lasita says, "You take what God gives you."

What are the chances of two sets of triplets without fertility treatments?

One in 64 million.

Well, he's rich, he's talented, he's pretty, but he won't be playing football for a while. David Beckham, the man trumpeted as America's soccer savior, is hurt -- bad enough to possibly keep him on the bench for the rest of the major league soccer season. Beckham went down hard on his knee Wednesday night. An MRI show that he sprained it. Beckham has played a total of 310 minutes since joining the L.A. Galaxy. It's terrible news for the team, already holding down last place in the Western Conference.

The closing bell about to ring on Wall Street.

Susan Lisovicz standing by with a final look at the trading day.

Now, if you figure he played about 310 minutes, he makes how much -- a gazillion, million dollars. That is one expensive minute.

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, but, you know, I know when he played recently in the metro area here, the stadium was packed. And I'm not sure that we had seen something like that, Kyra, since the heyday of Pele.

PHILLIPS: Oh. That's one of the greatest soccer players ever.

LISOVICZ: Yes, so -- yes.

PHILLIPS: That's the one that inspired us to play as kids.

LISOVICZ: Right.

PHILLIPS: And that was the whole goal -- pay him all this money, bring him to the U.S., everybody will show up to watch him, whether, really, there's a good team or not.

LISOVICZ: But you want a longer track record.

PHILLIPS: Yes. You do, than 300 minutes.

LISOVICZ: Yes. Hey, Kyra, we want to talk about some women with long track records. You know, "Forbes" is out with its list of the 100 most powerful women in the world...

PHILLIPS: I mentioned that you were in there.

LISOVICZ: (LAUGHTER).

No.

PHILLIPS: Are you?

LISOVICZ: Heck, no. We're like off the charts. But that's OK...

PHILLIPS: We're trying.

LISOVICZ: Yes, we're trying to influence, you know, smaller -- our own individual worlds.

Number one is the chancellor of the third largest economy in the world, Angela Merkel, who has -- Kyra, listen to this -- a 75 percent approval rating in Germany.

PHILLIPS: Wow!

LISOVICZ: Wow! I think we know some politicians who would love that.

Number two is the vice premier of China, obviously on track to replace China and perhaps some other economies as a powerhouse. That's Wu Yi.

Number three is the chief executive of the state-owned investment company in Singapore. She also happens to be the wife of the prime minister.

And then we know number four pretty well, Condi Rice, secretary of state.

And number five, we may not know the name, but we know that company -- PepsiCo, which makes a lot of things that we eat and drink -- Kyra.

PHILLIPS: Wow!

LISOVICZ: What a nice way to end this week going into Labor Day.

(STOCK MARKET REPORT)

LISOVICZ: Have a great holiday weekend, Kyra.

PHILLIPS: You, too.

See you in September.

Let's take you to "THE SITUATION ROOM" and Wolf Blitzer -- Wolf. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com

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