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CNN Live Saturday

Bush Relying on Diplomatic Pressure with North Korea; Astronauts take a Spacewalk; U.S. Deploys Missile Destroyer to Japan; Pope Benedict XVI visits Valencia, Spain; Tunnels in New York City Considered Terror Targets; Ismail Haniya calling for cease-fire in Gaza; Saving Money Exchanging Currency; Web An Invaluable Weapon for Would-Be Terrorists

Aired July 08, 2006 - 12:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Now in the news, you're looking at some recent pictures, 220 miles above earth, astronauts are on a six-and-a-half hour spacewalk outside the International Space Station. We'll have a live report coming up
More U.S. Military might be arriving in a hot spot. The USS Mustin, a guided missile destroyer sails to Japan, home to the Navy's seven fleet. The Navy says the deployment had been planned for some time and is not a response to this week's North Korean missile test.

Place your bets. Atlantic City casinos are back in business now that the New Jersey state budget crisis is over. Governor Jon Corzine signed an order early today sending state employees back to work including casino inspectors.

More U.S. military deaths in Iraq today. Three members of the First Marine Expeditionary Unit were killed in Anbar Province. The deaths bring the U.S. military death poll in Iraq to 2,542.

With Israeli-Palestinian violence continuing. 65 U.S. citizens left Gaza today in a three-bus convoy escorted by U.S. diplomatic officials. Many of the evacuees were Americans of Palestinian origin who had been visiting relatives there.

And now let's check in with Reynolds Wolf. How are you doing Reynolds?

(WEATHER REPORT)

WHITFIELD: All right, thanks so much, Reynolds.

We update the top stories every 15 minutes on CNN LIVE SATURDAY.

Straight ahead this hour, waging a jihad online. You won't believe the rhetoric some Web sites post on the internet.

Plus, it's vacation time. Make sure you get the very best exchange rates worldwide. We'll tell you how to do it, straight ahead this hour. From the CNN Center in Atlanta, I'm Fredricka Whitfield, welcome to CNN LIVE SATURDAY.

A military move to tell you about this morning. The USS Mustin arrived at the U.S. Naval Base in Japan today, carrying the Navy's most sophisticated guided weapons system. The Navy says the deployment had been planned for some time and that it's not in response to specific threat.

But it comes just days after North Korea's raised tensions in the region by testing a long range missile, among other things. President Bush says he is relying on diplomatic pressure to get North Korea to abandon its missiles tests and resume talks about its nuclear program. CNN White House correspondent, Elaine Quijano, can keeping eye on the developments -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: And good afternoon to you, Fred. Right now, U.S. officials are focusing on diplomacy when it comes to dealing with North Korea, in fact President Bush is stressing multilateral approach noting that in the past, North Korea has not lived up to agreements made in bilateral discussions. Now the president also acknowledges that diplomacy does take time but the United States is trying to make clear it will allow for diplomatic steps to be taken.

Earlier today in South Korea, U.S. assistant secretary of state, Christopher Hill said that Washington is open to one on one discussion with Pyongyang only if Pyongyang returns to the stalled six nation talks over North Korea's nuclear weapons program. In addition to the U.S., North and South Korea, those talks also include China, Russia and Japan and Hill is emphasizing that now is the time for North Korea to return to those talks.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, ASST. SECRETARY OF STATE: It gives me no pleasure to think about 20 million citizens in the DRK, people who don't have enough to eat, who don't have enough clothing, who don't have enough electricity and meanwhile they have a regime firing off missiles. So, you know, they need to serious and get back to the talks.

(END VIDEO CLIP)

QUIJANO: As for what's next, diplomats at the United Nations have agreed to delay a vote on a draft resolution by Japan, one that includes sanctions. That draft resolution was circulated by Japan on Friday. And while the countries are taking a look, we already know, Fredricka, that two key members, China and Russia are opposed to this idea. Instead, they want something called a presidential Security Council statement and the bottom line, that would have less impact and makes no mention of sanction -- Fredricka.

WHITFIELD: All right, Elaine Quijano, thanks so much from the White House this morning.

Retired Captain Alec Fraser is the former skipper of a U.S. Navy cruiser equipped with the Aegis technology, similar to the weapons system on the USS Mustin and he's current president of Turner Properties here in Atlanta. Convenient for us. He's also here to talk about the deployment of that ship among other things. Good to see you, Alec.

CAPT. ALEC FRASER, U.S. NAVY (RET.): Nice to be here.

WHITFIELD: Well the president said that had this long range missile been on the way toward the U.S., the missile defense system would have been able to have a reasonable chance to intercept it. Might he be saying that because of the U.S. destroyers that are already positioned there or is it something else about our technology, our defense system in place?

FRASER: Well, it's several things. First of all, the Mustin that's on station provides a first line of defense; it has the capability to shoot down ballistic missiles. And then the Star Wars program, started back in the Reagan administration was sort of narrowed down to regional protection by the Clinton administration, all those things have now sort of evolved into our current capability, which there is some.

WHITFIELD: And so if the Mustin was already on its way there, it really has nothing to do, the Bush administration is saying, because of any particular threat. Does that sound reasonable? It seems like it's great timing, a strange coincidence.

FRASER: Well, it does sound very reasonable. I think that the major thing to understand here is that ships are operating in the Mediterranean, the Atlantic, the Pacific, all of these places and they have training exercises they're doing, like the missile shoot that we're showing here right, now and they have the capacity to deploy to certain areas like Korea quickly, just because they happen to be in the area to begin with.

WHITFIELD: So my understanding is at least this week when these missile tests were taking place in North Korea, there were already two U.S. Aegis Destroyers -- U.S. Destroyers already in position. They were at the ready, not necessarily fired up to do anything, but now this USS Mustin makes it a third in that area. This Mustin brings something the other destroyers didn't have, what that?

FRASER: The Mustin brings a commuter guided radar that allows the ship, basically, to track everything over the Korean peninsula, the Sea of Japan and most of Japan itself. I remember being off the East Coast in my Aegis Cruiser and we were able to track every airplane from Maine to Miami simultaneously several times a second. Most radars do that every seven seconds.

WHITFIELD: And so, the objective for this Destroyer to be able to intercept via radar, any kind of activity, but not necessarily it shoot down by another missile?

FRASER: Intercepting a ballistic missile is a very difficult thing to do. One is traveling at mach three, the other is mach three plus, that's a closing rate of mach six. The technology to do that's very difficult, but it's there. And the ships are now displaying capability do that, the late nest June off the USS Shiloh off the Pacific missile test range, which was a successful intercept. WHITFIELD: Alec Fraser, thanks so much. Good to see you.

FRASER: Nice to be here.

WHITFIELD: And see you multitasking this morning. Not just Turner Properties, but the world as well.

FRASER: I hope you have a nice lunch.

WHITFIELD: All right, thanks so much.

Well 200 miles above the earth, a high altitude repair job is happening right now. Astronauts Piers Sellers and Mike Fossum climbed out of the space shuttle about three hours ago for a spacewalk that is scheduled to last another three-and-a-half hours. That's some walk. CNN's space correspondent, Miles O'Brien brings us up to date.

And what are they seeing so far?

MILES O'BRIEN, CNN SPACE CORRESPONDENT: Some incredible pictures, Fredricka. You know, Alec was just talking a moment ago about a closing rate of mach six. Well, try mach 25 on for size, because that is the speed which the space station and the space shuttle Discovery are traveling right now. Of course there is no speed of sound in space because there is no sound in space, but that's too far down the technical details there; 17,500 miles-an-hour they are travel over the north Atlantic. That's Piers Seller at the end of the extended robot arm of the space shuttle.

The idea here today is to test this portion, this extension, this 50 foot extension to the robot arm of this space shuttle, which is in itself 50 feet to see if it is a stable enough platform on which a space shuttle astronaut one day could do a task relating to repairs on the belly of a space shuttle.

As it stands now, the main robot arm of the shuttle, cannot reach far enough for a spacewalker to get underneath and do some work. So if a space shuttle were damage, and it was no where near the space station where there's other ways to access the orbiter, this would be a potential repair technique.

So far, Piers has been up there, going through a series of motion that you would do if you were doing a repair, taking tools out, taking a camera out, taking his feet in and out of this stand that they use to work with, and in some cases, we've seen this boom really move back and forth.

So, I don't know what the -- the jury is still out here, it'll be interesting to see. There's all kinds of sensors attached to the end of the boom here so they can get an idea of what's going on there and whether, in fact, it'll be good enough to go for work some day.

Take a look at some of the other shots that we've seen as they've gotten there work together out there. You know, just imagine the view he has as he does his job midway through this spacewalk. As you can see, they -- you're looking down now at the International Space Station. These are some of the radiators there. This is part of multipurpose logistics module. That's a cargo container the shuttle brought up, they need some work on.

And there's Piers Sellers as he was getting ready, getting his tools together as this boom was about to be extended. But that's a picture to remember there. Ultimately, they will be extended out six stories in length and he will be joined by his space walking counterpart who is not in this picture, Mike Fossum, and they will both be at the end of the boom to see how well it supports work there.

By the way, there is a possibility -- as you look at this shot there from earlier -- there's a possibility that they might have to use this technique even on this mission. NASA has not yet cleared space shuttle Discovery for re-entry.

There are no less than five locations on the belly of the orbiter that they're looking at for possible places -- let me just show you just where, there's one, two spots here, two spots on the right leading edge of the wing, and one back here that they're taking a closer look at for possible debris damage during ascent. And what they're looking at, in particular, is that near the back side, there is a gap filler, one of these things which sits right beside the heat resistant tiles, like so, and it's sticking out a little bit. Does this sound familiar.

WHITFIELD: Yes, it sounds -- you know, the caulking stuff.

O'BRIEN: You remember this stuff from a year ago and they conducted a space walk to pluck it out a year ago. In this case, where it is located, right back here, may require the use of that extended boom. Take a look at the pieces that they're looking at most closely here.

The one on the left here, they think that's OK. The one that I just told you where it was near the back of the shuttle may be sticking out far enough that it would create a little hotspot around it, like a blowtorch. And it's possible, if this technique works, out that they may actually try it for real.

WHITFIELD: And we're talking about three spacewalks in all. And during those three spacewalks they'll be focusing on this very stuff, inspecting the orbiter.

O'BRIEN: Exactly.

WHITFIELD: All right, Miles O'Brien, thanks so much.

O'BRIEN: You're welcome.

WHITFIELD: The Palestinian prime minister, he's calling for calm, hoping to ease the tensions in the Middle East. We'll be live in Gaza City next.

And what if that North Korean missile launch hadn't been a test? Would U.S. missile defenses protect America from a real attack? That story straight ahead. Plus, want extra euros to buy something special in Paris? We'll tell you how to get the best exchange rates anywhere in the world, all that and more straight ahead.

(COMMERCIAL BREAK)

WHITFIELD: A quarter past the hour. Here's was happening right now. A live view now of what's been taking place for nearly three hours and the six men are on the job outside the International Space Station practicing repairs and testing Discovery's robotic arm to see if it can be used to work on the shuttle. They'll be at it for another three hours.

A U.S. missile Destroyer is deployed to Japan. This new video of the USS Mustin as it docked in Tokyo Bay this morning. The U.S. says it's on a routine visit, but it arrives as the world tries to decide what to do about this week's string of missile tests by North Korea.

Along the boardwalk, the house is ringing with the sound of one armed bandits. New Jersey's casinos are opening their doors. They did so in fact at 7:00 a.m. this morning rm. The budget crisis is over an hour earlier Governor Jon Corzine signed an order sending state employees back to work.

Three more Americans have been killed in Iraq, the U.S. military says the soldiers were assigned it a Marine unit in the western Anbar Province. So far eight members of the U.S. military have died in Iraq this month.

In Valencia, Spain, Pope Benedict XVI gets a royal welcome from King Juan Carlos and Queen Sophia. Later the pope offered prayers for the 42 victims of Monday's subway accident. As many as a million and a half people are expected to attend tomorrow's papal mass.

We update the stories every 15 minutes on CNN LIVE SATURDAY.

And now to the Middle East, the Palestinian prime minister calls for calm today and a stop to military operations on both sides. CNN's Paula Hancock's joins us live from Gaza -- Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Fredericka. That's right, Ismail Haniya, the Palestinian prime minister has said that if the Israelis stop the aggression then the Palestinians will top the aggression as well. He said that the Palestinian government wants negotiations -- intense negotiations to try and secure the release of this kidnapped Israeli soldier who was taken almost two weeks ago now.

Now Israel hasn't officially reacted to that statement, but over the past couple of days they've consistently said the same thing, first they want to see the soldier returned alive and well. Second they want see all these rocket attacks that are being carried out from Palestinian militants from Gaza into Israel, they want to see those stopped completely and then they will sit down and talk and consider what the next move is.

Now, from a military point of view, we've seen northern Gaza, much of it now devoid of any Israeli tanks and troops. They've all moved out from this area where in the past three days we've seen extremely fierce fighting. We know that 32 Palestinians have been killed in the past three days, according to Palestinian medical sources and also one Israeli soldier lost his life.

Now for the most part, northern Gaza's empty. Southern Gaza still has a lot of troops there. Eastern Gaza, they're just trying to clear tunnels and explosive device, there are -- is still some shelling you can hear.

Now, at the crack of dawn this Saturday morning we did see about 65 Americans leaving actually Gaza, now these were Americans who were mostly of Palestinian descent have either come over to visit friends or relatives and had then got caught up in this escalation of violence. So they've been trying to leave Gaza for the past couple of weeks and we know that finally this morning, they went on a U.N. Convoy at the crack of dawn and managed to get back into Israel to fly back home -- Fredricka.

WHITFIELD: All right, Paula Hancocks in Gaza City, thank you so much.

Iran's president again denounce Israel and calls on the Muslim world to mobilize against what he calls the biggest threat to the Middle East. Mahmoud Ahmadinejad he has been meeting with Arab foreign ministers in Tehran, he has previously called for wiping Israel off the map. Ahmadinejad also urged Arab nations to support Iraq's new government.

Tonight on CNN's "This Week at War," CNN correspondents from around the world look at the latest from Iraq, the London bombing anniversary and the CIA's decision to close its bin Laden unit. John Roberts hosts "This Week at War." Tonight at 7:00 Eastern, 4:00 p.m. Pacific.

Well, everyday thousands get to New York City through the Holland Tunnel. Up next, we go inside the tubes and find out just how safe it is underground.

And later, a story you'll only see on CNN, people risk their lives to bring us these images from North Korea. Here a crowd gathers, forced to watch an execution, that story coming up.

(COMMERCIAL BREAK)

WHITFIELD: In our CNN "Security Watch," five suspects remain at large in connection with an alleged plot to attack rail tunnels leading into New York City. Three other suspects are in custody. Officials say Islamic extremists hoped to bomb trains running beneath the Hudson River sometime this fall.

Four-hundred, fifty million people every year, that's how many use New York and New Jersey's tunnels, bridges, airports and transportation systems. So how vulnerable are those systems to terrorist attacks? CNN's Mary Snow has the story.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Tunnels leading into New York City have long been considered terror targets, the path commuter train system which the FBI says the target of this latest blot carries hundreds of thousands of commuters under the Hudson River from New Jersey to Manhattan every day.

SAMUEL PLUMERI, PORT AUTHORITY POLICE: I think that any explosion, any blast in any tunnel, regardless of the size, would cause, obviously, and a disruption. To get into details as to what that means in terms of size of explosives, et cetera, I'm not prepared to did that here today.

SNOW: Since the early 1990s, New York officials say nearly 20 attacks or attempted attacks have been made against the city. While Friday the FBI specifically mentioned the transit tunnels, officials also say a number of those threats over the years have targeted New York City's other river crossings, including a 1993 plot involving the Holland Tunnel. Experts say while bombs could severely damage tunnel interiors and ventilation systems, it's doubtful the force of a conventional explosion would break through the layers of bedroom into the river.

LEE AMRAMSON, TUNNEL ENGINEER: They would very unlikely cause a complete clasp of the tunnel and water rushing in.

SNOW: Engineers say the path tubes, much like the Holland tunnel, are built under the riverbed, protected by bedrock in most parts. Experts say that a daily news report that this latest plot to intentionally flood lower Manhattan's financial district would be unlikely because New York is above sea level. Security analysts say terrorist don't only have an objective of physical damage in mind, they say these types of plots are aimed generating psychological panic and chaos as well.

(on camera): But many New York commuters say they can't afford to give into fear knowing that they may be targets has become a part of their everyday routine.

Mary Snow, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: And stay tuned day and night for the most reliable news about your security.

The missiles launched by North Korea this week did not threaten the U.S., but if North Korean technology gets better and tensions with the U.S. get worse, will the U.S. be ready? We'll take a look

And later, don't lose any money when changing dollars to euros. Coming up, how to get the best exchange rates anywhere.

(COMMERCIAL BREAK)

WHITFIELD: Half past the hour now. Here's what's happening in the news.

This is new video just into CNN. The USS Mustin arrived in Japan today on what the Pentagon says is a routine port visit. The Mustin is equipped with the Navy's most advanced guided missile technology, but officials say the deployment is not in response to the North Korean missile crisis.

Palestinian Prime Minister Ismail Haniya is calling for a cease- fire in Gaza. A spokesman for the prime minister said it's time to ease the tensions that have been mounting ever since Palestinian militants abducted an Israeli soldier.

Three soldiers assigned to the 1st Marine Expeditionary Unit died in combat in Anbar Province. This brings the total U.S. military death toll in Iraq to 2,542.

New Jersey is getting back to normal. The state legislature passed a budget at about 6:00 a.m., ending a state government shutdown and allowing non-essential state services to resume. Casino inspectors got back to work about an hour later allowing gamblers in Atlantic City to get back to the tables.

And we're nearing the midpoint of a scheduled six-and-a-half hour spacewalk outside the International Space Station. Astronauts Piers Sellers and Mike Fossum are practicing repair techniques and testing equipment.

And now let's check in with Reynolds Wolf in the Weather Center. We know what the weather is like up there. It's cold and it's dark. What's it like down here?

(WEATHER REPORT)

WHITFIELD: Thanks so much.

We update the top stories every 15 minutes on CNN LIVE SATURDAY.

A U.S. warship arrives in Japan as the U.S. offers North Korea a chance to talk. In a story we are closely following today, a U.S. guided missile destroyer is now docked in Tokyo Bay, the USS Mustin.

It deployed to Yokosuka, Japan, home to the Navy's 7th Fleet and equipped with sensitive, missile tracking radar. The move follows missile tests earlier this week by North Korea.

A short time ago, the Mustin's commander talked to reporters, saying the destroyer was not deployed in response to North Korea's missile launch.

(BEGIN VIDEO CLIP)

CMDR. EDWARD B. CASHMAN, USS MUSTIN: We are aware of the situation in North Korea and the events of the past several weeks. We don't have any particular mission right now. We're tasked to come and turn over as part of the normal rotation of forces.

(END VIDEO CLIP)

WHITFIELD: Meanwhile, the State Department says the U.S. is open to one on one talks with North Korea. However, U.S. Envoy Christopher Hill says North Korea must first return to six-party talks. In China Friday and South Korea today, Hill is on a diplomatic mission to convince Asian leaders to present a united front.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, ASST. SECY. OF STATE: When they come back in the six-party process, we can have as many meetings they like, indeed we can enhance the number of meetings we will have, but we're not going do this outside the six-party process.

They know the deal. The deal is the six-party process. We're not going to turn this into a bilateral issue where the ROK is asked to wait in another room while the real negotiations go on outside of the ROK or outside of China.

(END VIDEO CLIP)

WHITFIELD: Hill heads to Tokyo tomorrow. In the direct line of fire, Japan says it won't back down on its demand for stiff U.N. sanctions against North Korea. It wants Pyongyang out of the ballistic missiles business. Japan is pressing the Security Council to take action on a resolution condemning the missile launches and ordering the sanction. No vote expected this weekend. China and Russia remain opposed.

The missiles launched by North Korea this week caused some tense moments but posed no immediate threat to the U.S., but what if they had? What would the U.S. be ready for?

Our Pentagon correspondent Barbara Starr looks at that very question.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): If the launch were an attack, could we shoot down the North Korean missile? A feat described as the equivalent of stopping one moving bullet using another moving bullet. There have been 10 tests of the U.S. interceptor. Only half have worked.

JOHN PIKE, GLOBALSECURITY.ORG: If the missile-defense system was a baseball player, and had a batting average of .500, you'd say it was doing pretty good. If it's only working half of the time, and it's the only thing standing between you and an incoming hydrogen bomb, you'd say it's not working very well at all.

STARR: The five tests that failed, one as recently as last February, had various technical problems. Pentagon officials say those have been solved, and they are now confident that missiles would work during an attack, mainly because there were four consecutive successful hits against target missiles in 2001 and 2002.

But that was four years ago. Since then, much of the technology has been upgraded.

But one defense official familiar with the program acknowledges the major criticism, that the testing done so far is not realistic.

UNIDENTIFIED MALE: All systems are go for launch. Standby for terminal count.

STARR: That it's all been scripted out ahead of time, as most weapons tests are.

Analysts say the U.S. may still have problems shooting down anything more complex than a single warhead. The biggest risk still may be the continuing uncertainty about North Korea's real intentions.

PIKE: And it's possible that one day they'll provoke crisis, get in over their head, and suddenly we'll find ourselves in a shooting war with them. Under those circumstances, you might hope that you had a reliable missile defense, because they might not prove completely deterrable.

STARR (on camera): Later this summer, a new round of anti- missile testing by the U.S. will begin. Officials say that round will be more realistic testing to try and make sure that all of the technology works in the future, in case there is an attack.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

WHITFIELD: President Bush apparently has more confidence in the military's ability to deflect a missile attack. Listen to what he told CNN's Larry King in an exclusive interview this week.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: If it headed to the United States, we've got a missile defense system that will defend our country.

LARRY KING, CNN HOST: Do you then fear it more now?

BUSH: I think that's what he wants. I think he does want people to fear him. My response to him and the response of our partners is to be that, you know, it's very important for you, the leader of North Korea, to make rational decisions because the United States is not alone in making these demands. The demand, of course, is to give up his weapons programs in a verifiable fashion.

I think he would love to have the United States sit down at the table alone with Kim Jong-Il. The problem is we tried that and it didn't work. I think the best way to solve this problem diplomatically is for there to be other nations around the table with us, so that when he looks out, when he looks at the table, or he looks at the world, he hears China and the United States speaking in one voice, or China the United States, Russia, Japan and South Korea speaking with one voice. I'm into solving problems and I'm convinced the strategy we have got is the best way to solve this problem.

(END VIDEO CLIP)

WHITFIELD: See Larry's entire conversation with the president and first lady. That interview will air Sunday night at 9:00 Eastern, 6:00 Pacific right here on CNN.

In North Korea, dissidents risk their lives to secretly record brutal images of life under the Kim Jong-Il dictatorship. They smuggled these pictures out of the country for the world to see. Tonight, CNN PRESENTS follows a Korean-American journalist as she tracks down these images you're about to see. Here's a preview.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice-over): North Korea, March 2005, a crowd has been ordered to gather in an open field. A party official makes an announcement. Children have been brought to watch. The sentence is about to be passed. Three men are about to die.

These people have committed the crime most damaging to North Korea's leader Kim Jong-Il. They made contact with the outside world. Three policemen step forward and raise their rifles. On the left, a prisoner is tied to a pole. This video was passed from person to person along a secret underground network, powerful evidence of public executions under the regime of Kim Jong-Il.

(END VIDEOTAPE)

WHITFIELD: And you can see more of this rare inside look at North Korea tonight and tomorrow at 8:00 p.m. Eastern.

Well perhaps you're planning your summer travel and perhaps Europe looks like a destination worthy of exploring. Well exchanging money can leave you a little short on cash these days. Up next, we'll tell you how to get the most for your dollars.

And talk about tourists -- these guys are long way from home and they don't need any spending money at all. We're watching a spacewalk all day here on CNN, and we will be right back.

(COMMERCIAL BREAK)

WHITFIELD: So when you travel abroad you look for the best deals on your tickets, your hotel room, and even on souvenirs, right? Well, many travelers overlook another way to save big money, by getting the best exchange rates when they change dollars into local currency.

In today's "Dollars & Deals," Tim Jarrell of Fodor's Travel Guides has a few tips for us.

Good to see you, Tim.

TIM JARRELL, FODOR'S TRAVEL GUIDES: Good to see you, Fredricka. WHITFIELD: Well, I think a lot of folks -- or at least I always thought when you're going abroad you want to carry U.S. currency and exchange your money when you get there but you want to avoid places like those little money exchange turnstiles, et cetera. Do I have any of that right?

JARRELL: Well, do you have that right. I would avoid those money exchange kiosks and I would avoid exchanging your cash at a hotel because those places tend to have exorbitant rates or at least have high fees.

Your best bet is carrying cash, converting it at a large commercial bank, or using your ATM or your credit card, but you have to be very, very, very careful because different banks charge very, very different rates.

WHITFIELD: So that means you need to do a little homework before you leave. Perhaps call your bank, call your credit card, find out what kind of arrangements, what kinds of fees are attached?

JARRELL: Yes, you have to do your homework and, sadly, you're going to have to call your bank and go through automated telephone customer service until you get a live operator and ask four important questions, at least, if you're trying to use your ATM card.

WHITFIELD: What are they?

JARRELL: Well, one is does your bank have an affiliate relationship with a bank in the country you're traveling to? Because if they do, you can often use that bank to use your ATM card without incurring a fee.

The second is what kind of surcharge does your bank charge on a transaction. I have actually two ATM cards, one bank charges three percent. The other bank charges one percent.

Third, you have to ask whether you're going to be charged an ATM fee by your local bank. One bank charges $3, the other $1.

And lastly -- and this is very, very important -- you should ask your bank if you lose your card, what will happen? Will they replace it? Most banks do not have the ability to replace a lost credit card or ATM card when you're traveling abroad.

WHITFIELD: Wow, except maybe American Express because sometimes they have those American Express offices in lots of different cities.

JARRELL: Yes, American Express will replace your card and will deliver it to your hotel depending on the kind of service you have. So yes, American Express in that particular case, is a good deal.

WHITFIELD: Yes, they've saved me in a pinch or two abroad.

So now why wouldn't you want to use a service that some of the hotels use? It seems awfully convenient and safe. You don't have to go tracing around the city looking for a bank. JARRELL: Well it is safe and it's convenient. And the hotels know that and it is expensive. You tend to go into the hotel, cash a small amount of money, maybe $20 or $40. You probably are not going to get a good currency rate an you're probably going to have a service fee attached to it. So in general, it's not a good deal.

WHITFIELD: Oh, and quickly, before I let you go, we didn't say anything about traveler's cheques. Everybody always feels like traveler's cheques are the way to go when they travel. Thumbs up or thumbs down to you?

JARRELL: Well, it depends. If you're going to travel abroad and your bank or credit card company is not able to replace your cards if you should lose them, having a traveling card or there there's a new product which is actually a check card is not such a bad idea. It's a little bit more expensive but if you lose it, you can get it replaced.

WHITFIELD: All right, Tim Jarrell, of Fodor's Travel Guides, thanks so much.

JARRELL: Thank you.

WHITFIELD: Happy trails.

JARRELL: Thanks.

WHITFIELD: Well, now in the news, new video into CNN today, a Navy warship, a guided missile destroyer arrives in Japan today. It's the eighth now in the region. The USS Mustin carries a sophisticated missile tracking and engagement system. The routine deployment in the works for months now, we're told, happens to come days after North Korea tested seven missiles.

And here is what developing at 45 past the hour now. A couple of astronauts are stepping out. Their spacewalk has two goals: practice repairs outside the space station, and test a boom to see whether it can be used to fix hard to reach areas on the shuttle itself.

After two weeks of hostilities, the Palestinian prime minister wants to talk now, not fight. Israel rejects a cease-fire. It says an offensive into Gaza will go on until a captured Israeli soldier is freed and militants stop rocket attacks in southern Israel.

And France's Alemie Mauresmo wins the women's title at Wimbledon today. She bested Justine Henin-Hardenne today from Belgium, 2-6, 6- 3, 6-4. Mauresmo's other grand slam title came in this year's Australian Open against the same opponent. Sweet victory times two.

A reminder that we update the top stories every 15 minutes on CNN LIVE SATURDAY.

Well, just about everybody uses the Internet these days, even would-be terrorists. Ahead in our "Security Watch," we take a look at the jihad being waged online. You're watching CNN, the most trusted name in news.

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WHITFIELD: Back now to CNN's "Security Watch." The alleged New York tunnel plot was discovered by agents watching Internet chatrooms. As CNN's Octavia Nasr reports, the Web is an invaluable weapon for would-be terrorists.

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OCTAVIA NASR, CNN SR. EDITOR, ARAB AFFAIRS (voice-over): A war is being waged online, complete with troops, arsenals and a propaganda machine. The intelligence community refers to it as "online jihad" and warns it is not to be taken lightly.

LAURA MANSFIELD, COUNTERTERRORISM EXPERT: Well, there's documented evidence over the past few years of terror attacks being planned on the Internet, including the Madrid bombings in May 2004, up to and including, possibly, the London bombings.

NASR: Terrorism experts believe it all began here with this chilling video of American contractor Nick Berg, as his cold-blooded beheading was taped and posted on the Internet for all to see.

Thousands of radical Islamist Web sites came into existence since that moment. Some representing specific insurgency groups, others speaking in the name of entire regions, all trumpeting attacks against U.S. forces and their allies, not just in Iraq and Afghanistan, but everywhere around the world.

Mansfield and other terrorism experts have been trying to find out who is behind this propaganda.

MANSFIELD: What appears to be happening, especially with the videos, is you have an individual who takes the video, he processes it on commercially available video editing software -- a lot of it is available even as freeware -- and then they post it on the Internet on the message boards, they use free file-sharing services, and it spreads almost virally.

NASR: From messages of al Qaeda leader to the world, to taped improvised explosive device attacks on U.S. troops and Iraqi forces, to suicide bombings of mosques and marketplaces, an abundance of video showing details of attacks or glorifying the suicide bombers, hailing them as martyrs, can be easily found online.

A war is being waged, and its main weapons are a camera, a microphone and a computer. It is simply called, "jihad online."

Octavia Nasr, CNN, reporting.

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WHITFIELD: German authorities have arrested a man they say was recruiting suicide bombers for Iraq and providing financial support to al Qaeda. Authorities say the suspect completed an explosives training course in Algeria last fall and has ties to the Hamburg al Qaeda cell that included several 9/11 hijackers. Stay tuned day and night for the most reliable news about your security.

Well, take a look at the Golden Gate Bridge. What a beautiful day it is, as always that view is. Up next, a check on your weekend weather. Will the rest of the country be seeing those sunny skies?

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WHITFIELD: A look at our top stories, in a moment, but first a preview of "IN THE MONEY."

ANDY SERWER, CNN ANCHOR: Thanks. Coming up on "IN THE MONEY," halftime -- find out where the economy stands now that we're midway through the year.

Plus Enron and on and on. See whether Ken Lay's death really matters to the legacy of the case.

And Peter pandemonium. We'll hear about adults who play like they never grew up and see how they're changing American business. All that and more after a quick check of the headlines.

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