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CNN Live Saturday

Trans-Atlantic Air terror Investigation Continues; Fighting Continues Between Israel and Hezbollah; Hezbollah Leader Grudgingly Accepting Security Council Draft Resolution; Phone Call Between President Bush and Lebanese Prime Minister Today

Aired August 12, 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: Well, "Now in the News," new details in the alleged plot to bring down ten jetliners heading from Britain to the United States. British authorities now say a member of that country's Muslim community helped foil the plot by turning in a suspicious acquaintance. As the investigation moves forward, 23 people are in custody in Britain. Other suspects are under arrest in Pakistan.
And this just in from "Reuters" on the Middle East crisis, Israel plans to halt offensive operations in Lebanon on Monday at 7:00 a.m., this as Israeli forces launch more attacks on targets in Lebanon.

In northern Israel more Hezbollah attacks. This is the 32nd day of fighting despite a U.N. resolution aimed at ending the fighting. The Security Council yesterday unanimously approved the resolution.

Several Egyptian students missing for two weeks after arriving in the United States are now in custody. Three were arrested last night, six others earlier in the week. The search for two missing students continues. They are all accused of immigration violations. Authorities say they failed to show up for class as part of an exchange program at Montana State University.

In Iraq, more deadly violence, a bomb exploded in a Basra shopping district earlier today killing two people and wounding four others. Two separate roadside bombings in Baghdad wounded nine people.

In south Louisiana in this country, 40 people are back on dry ground after a dramatic rescue. The coast guard picked them up after they evacuated a research vessel that had caught fire. The blaze broke out in the boat's engine room.

From the CNN center in Atlanta, I'm Fredricka Whitfield, welcome to CNN LIVE SATURDAY. On this very busy Saturday morning, we're watching two major developing stories unfold. We'll have the latest on the transatlantic air terror investigation and we'll bring you up to date on the fighting between Israel and Hezbollah and the international effort to bring that fighting to an end.

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ANNOUNCER: This is CNN "Breaking News."

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WHITFIELD: Some "Breaking News" on the London terror investigation. We have some exclusive information from a lawyer representing two of the suspects. CNN's Dan Rivers joins us live with more on this conversation -- Dan.

DAN RIVERS, CNN CORRESPONDENT: Thank you, Fred, yeah, I've been talking to a lawyer who represents two of the men who have been arrested in this part of East London in Walthamstow. She said she was pretty critical really of the way the police have been handling this investigation. She said that she was appalled that one of her clients is not being given food or water for 26 hours, she claims.

She said that they, as lawyers, had had very limited contact with those men that had been arrested as part of this ongoing investigation into an alleged plot to blow up planes flying into the United States. She said that the men themselves had not been able to even make a phone call to their family so far.

And when I asked her, you know, describe what these men are like, that you are representing as a lawyer, she said they're ordinary people who are shocked at what's happened to them and they're very concerned for their families. She said that they were crying when she saw them, they were incredibly upset and emotional and distraught about what had happened. And they were very keen to try and get a message back to their family to say they were OK and that, from all accounts, they're claiming that they are completely innocent of any of these charges, the two men she's representing.

WHITFIELD: And so Dan, these men, what are their ages?

RIVERS: Well, he two men that she's representing are 22 and 23 years old. She didn't want us to reveal which of the men, their names or identities, and we will honor that, but suffice to say they were arrested as part of this broad sweep of raids in this part of East London, I'm in Walthamstow, where nine men and one woman were arrested yesterday.

You can see around me, this is one of the house, you can see the policemen out front here of one of the houses, across the road, this house is right opposite the local mosque where it's alleged that several of these suspects worshiped. And the men she said were at the moment being held at Paddington Green Police Station, but there were plans afoot to move them to a high security prison in Belmarsh in South London, even before even any charges have been laid.

At the moment, the men have appeared before the magistrates here, the local courthouse, if you like, and they are been remanded back in custody for seven days. They physically remained at the police station. It was all done through a high-tech video link for security reasons and the police here can hold these men without formally charging them for up to 28 days under the terrorism act. So, they have quite a considerable time still yet to go before they have to formally charge them or release them.

WHITFIELD: And so Dan, what do men in the community seem to say about these men? These charges seem outlandish, they don't seem possible based on the kinds of characters they know about these people? Or is anyone stating it differently?

RIVERS: Well, we spoke to one man earlier on around the corner at another mosque who said he knew several of the men who had been arrested from childhood. He was clearly very shocked by the fact that they'd been arrested. Said he couldn't imagine that they'd have anything to do with terrorism, that they were perfectly normal, nice young men and was just clearly very distraught that the young men that he knew that used to worship at his mosque and live in this close-knit Muslim community here had been arrested on suspicion of this heinous plot to blow up transatlantic flights flying in from London Heathrow to America.

And obviously if this plot was real and if it had gone ahead, it would have led to an enormous loss of life. We're talking hundreds, maybe even more than a thousand people that could have perished if all these nine planes, as it is alleged, were blown up on their way over to the United States.

WHITFIELD: All right, Dan Rivers on the investigation and his exclusive interview with one of the attorneys representing at least two of the suspects in this foiled airline plot.

And now, new developments this hour in the Middle East crisis. Here's "What we Know." The U.N. Security Council OK'd the resolution to end hostilities between Israel and Hezbollah, Lebanon's cabinet takes it up at a meeting today. Israel is scheduled to consider it tomorrow. Meantime Israel steps up its offensive against Hezbollah pushing even deeper into Lebanon. Israeli military says it carried out more than 80 airstrikes in Lebanon overnight.

Time to end the violence? Lebanon's cabinet meets today to discuss the U.N. resolution calling for a halt to the hostilities. Meanwhile Hezbollah leader, Hassan Nasrallah, is laying out his conditions. Our Beirut bureau chief, Brent Sadler, is in the Lebanese capital.

And are we seeing that he is endorsing, as a whole, the resolution?

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: Well, yes and no. Hassan Nasrallah, the leader of Hezbollah has given grudging acceptance to the Security Council draft resolution, so it's Resolution 1701 and that in that statement shown, a short time ago on television, Al- Manar, Hezbollah's own channel and Nasrallah made it clear that if Israel basically stops what he called "Israeli aggression," Hezbollah would do the same. Let's listen to what he said.

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HASSAN NASRALLAH, HEZBOLLAH LEADER (through translator): Therefore when there's a time for that to cease, to put a cessation of hostilities, the resistance will be obliged (ph) by it. Whenever there's a declaration before and after, I assure you the resistance was a reaction, therefore when the Israeli aggression stops, then the reactions by the resistance will stop.

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SADLER: But there may be problems in other aspects that came out of that statement, Fredericka, the Hezbollah leader said that they had reservations that would be expressed by Hezbollah's two ministers now taking part in the Lebanese cabinet session, reservations that could have a ripple effect, a negative effect at the international level.

Why? Because if Hezbollah has serious reservations about the conditions of that cessation of hostilities resolution it could make capitals considering putting troops object ground to join a United Nations' peacekeeping force, it could make them have second thoughts about all this.

Now that is a possible negative impact, the Lebanese cabinet, though, is expected to accept this resolution with those reservations from Hezbollah. Meanwhile, Nasrallah has made it quite clear that as far as Hezbollah is concerned, the war has not stopped, it will not change tomorrow, he says, and it will no change the day after. That really alluding to the fact that right now many thousands of Israeli paratroopers and other forces still continue to push deeper into South Lebanon -- Fredericka.

WHITFIELD: All right, Brent Sadler, thanks so much for that update.

Well, Israel's war strategy plays out as the United Nations again moves to end the fighting in the Middle East. We begin our coverage in Northern Israel where tanks and troops have been pouring across the border and expanding Israel's offensive deep into Southern Lebanon. Our Matthew Chance is there.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Fredericka, thank you very much. Well, ever since this United Nations resolution was adopted yesterday, Israel has been actually stepping up its military operations inside Southern Lebanon, giving the order to expand those ground force operations in Southern Lebanon indeed that has been happening over the course of the past day or so.

You may be able to make out behind me the noise of Israeli guns really pounding Hezbollah positions across there in Southern Lebanon. What we've also been seeing here are hundreds of troops moving across the border, backed by tanks into positions to join the 10,000 or more Israeli soldiers that are already on the ground there.

What the Israeli military says is that one of the aspects of this latest operation has been to move hundreds of soldiers into Southern Lebanon by helicopter in the biggest, sort of, you know, kind of battle of that kind, if you will, in Israeli military history. They've been moving hundreds of soldiers, they're saying, deep into Southern Lebanon to try and gain control of the areas from which Hezbollah has been launching rockets into Israel.

The reason they're doing that very quickly is because there's a sense, which is obviously very real, that the diplomatic clock is ticking. This resolution, as you mentioned, has already been adopted by the United Nations Security Council, it's going to be debated at Israel's cabinet meeting tomorrow on Sunday with the anticipation being that the cease-fire will come on the part of the Israeli side by about 7:00 Monday morning Local Time. At least that's according to Israeli media reports as well as Israeli officials that have been quoted in the media.

So certainly at the moment, the operations are still underway and indeed expanding until -- and you can hear the thuds behind me as airstrikes are being called in -- but those military operations, very much expanding as Israel really waits for the resolution to be debated in the cabinet and then finally implemented on the ground -- Fredericka.

WHITFIELD: All right, Matthew Chance along the Israeli Lebanese border, thanks so much.

Well, in the war on error, investigators still putting together the pieces of the alleged plot to bomb transatlantic jetliners. Straight ahead, we'll go live London's Heathrow Airport for the latest on the probe.

More fears and concerns among Muslims in the British capital. We'll hear from them.

And danger along the Israeli-Lebanese border. CNN's John Roberts will show us what it's like in one town near the fighting.

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(BEGIN VIDEOTAPE)

ANNOUNCER: This is CNN "Breaking News."

(END VIDEOTAPE)

WHITFIELD: This breaking development as the cabinets of Israel and Lebanon set to vote on accepting a U.N. peace resolution, a phone call between President Bush and the Lebanese Prime Minister Fouad Siniora. Our Suzanne Malveaux is in Crawford where she is covering the president.

And who initiated this phone call and what was said -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Fred, we don't know who initiated that call just quite yet, we should be getting a read-out in about 10 minutes of so, but a senior administration official says the call took place about 8:15 this morning, Eastern Time, between the two leaders, that they discussed a way forward after this U.N. Security Council resolution that, of course, that the president, administration somewhat optimistic that both sides here, there have been positive responses from Israel as well as Lebanon, the Lebanese government, to find some sort of way to end the violence. So that is what the two leaders discussed.

You may recall it was the G-8 Summit, the conclusion of the G-8 Summit that when those leaders gathered together and decide they were going to come up with bullet points, ways to end the violence, requirements from both sides, President Bush put in a call to Siniora during that time as well to express his support to the Lebanese government bolstering that regime. So, that is, those discussions are continuing.

And should also note, too, Fred, it's somewhat different than the situation you have with Israeli Prime Minister, Ehud Olmert. It was yesterday, President Bush and Olmert spoke for the first time since the beginning of the crisis, Olmert reaching out to the president. That was very deliberate.

Those two leaders, of course, engaged in a really delicate diplomatic dance, if you will, it was seen that the administration of course wanting to support Israel's actions in defending itself, but at the same time did not want to give any kind of perception that they were colluding with the Israeli government when it came to military action or any type of move forward so that's why those two leaders had not spoken during the whole conflict and that is why Olmert picked up the phone just yesterday, the timing had to be right, the timing was right, yesterday.

And again, you see President Bush as well as Siniora, today, reaching out to one another saying we are moving forward. And again, the senior administration official saying they certainly hope this dialogue between all these leaders will indicate to the international community, they are all very serious about putting an end to the violence -- Fred.

WHITFIELD: All right, Suzanne Malveaux in Crawford, we'll check in with you periodically, thanks so much.

Now here's "What we Know," right now, about the alleged plot to blow up transatlantic airliners with liquid explosives. Twenty-three suspects still in custody and undergoing interrogation in Britain. Another suspect has been released. Authorities say a memo suggests the planned bombings may have been just days away and there's now word the alleged plot was foil with help from a member of Britain's Muslim community. A British intelligence official says that person contacted authorities after noticing an acquaintance was acting suspiciously.

At airports across Britain and the U.S., extraordinary measures remain in place. All carry-on bags are banned in Britain and at American airports a near total ban on liquids in carry on luggage is still in effect.

Authorities in the British capital are forging ahead with their investigation of the alleged terror plot. CNN's Richard Quest is with us now from London's Heathrow Airport -- Richard.

RICHARD QUEST, CNN CORRESPONDENT: As you might expect, Fredericka, this is turning into an extremely complicated investigation, but one development in the last few hours, British police have raided several internet cafes for what they believe is evidence, or further evidence, towards this explosive plot. We don't know what they're expecting to find and the authorities are being very circumspect about what they tell us.

But it all starts to fit a pattern, whether or not -- the information is starting to become clear that there was this explosives plot that memos, that messages were being sent backwards and forwards, it's believed from the U.K. to Pakistan and it is also believed, because of the latest memos we've learned about, that for instance, there was this go with your attacks now memo that suggests the whole thing was a lot sooner than most people had been believed.

On the travel front, Fredericka, I'm afraid it's rather grim news. The delays keep getting worse. It's taking up to four times as long to check in passengers traveling to the United States. And as the managing director of London's Heathrow Airport made clear, it's a position that's not going to get better any time soon.

(BEGIN VIDEO CLIP)

TONY DOUGLAS, CEO, HEATHROW AIRPORT: This is the busiest international airport in the whole of the world. I would be luckily normally if we had four percent additional capacity, here. As a consequence of these unprecedented changes, security process in times are taking up to 400 percent longer. Individual hand searches, obviously people have now got to come very well prepared with no hand luggage. With personal belongings in a transparent plastic bag and all flights to the United States, that process is repeated twice.

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QUEST: That shows you the sort of length, the delays, and the trials and tribulation that passengers are going to face -- Fredericka.

WHITFIELD: Tribulations and trials that are going to carry on for quite some time we expect. Richard Quest, thanks so much.

Well, lives shattered by weeks of war. Coming up, CNN's John Roberts shows us what it's like in an Israeli town near the Lebanese border.

And we'll meet a remarkable woman, a journalist in the Middle East who lost a leg and part of her arm in an assassination attempt. And now she's back on the mend.

(COMMERCIAL BREAK)

WHITFIELD: The Israeli military moves deeper into Southern Lebanon, pressing its fight against Hezbollah militants today, the drive came as Hezbollah fires more than 100 rockets into Northern Israel. CNN's John Roberts is in the town of Kiryat Shmona along the Israeli-Lebanese border.

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JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT: Israeli armor rolls toward the border, part of a bigger push into Lebanon with the order given by Israeli political leaders to expand the ground war. Whether through force or diplomacy, Israel is determined to remove the threat from Hezbollah, firing Katyusha rockets at towns and villages.

More than 120 fell today, many of them on the border town of Kiryat Shmona. We spent much of the afternoon with the fire department there, chasing Katyushas as they rained down almost constantly.

(on camera): We've been waiting at this fire station for about a half an hour now, the firefighters saying they had some intelligence that Hezbollah was going to fire Katyusha rockets at about 2:00. It's now five minutes of 2:00 and air raid sirens have just gone off.

UNIDENTIFIED MALE: We're near the border and that Hezbollah is sitting on the border, and they make war with us.

ROBERTS (voice-over): Firefighters wait for the first volley to come in. Within moments it's time to go.

UNIDENTIFIED MALE: Now it's two Katyushas they come to Kiryat Shmona.

ROBERTS (on camera): Two Katyushas coming in?

UNIDENTIFIED MALE: Yes.

ROBERTS (voice-over): Reports of a house on fire, they race to their truck, speeding through the streets under continual threat of another attack. They arrive at the scene to find smoke billowing from the home.

(on camera): This latest volley of Hezbollah Katyusha rockets shows just how random they are. The first one landed harmlessly in the field. The second one made a direct hit the on this house at the edge of a neighborhood. As you can see, it's literally torn the entire back side of the house apart.

(voice-over): There were no injuries, here. No one was home. Kiryat Shmona is almost a ghost town and no wonder, the firefighters had not even cleared the scene when the air raid sirens wailed again.

UNIDENTIFIED MALE: Very, very, very dangerous here. All the people here is running, running from Kiryat Shmona.

ROBERTS (on camera):

UNIDENTIFIED MALE: Come on, go.

(voice-over): And running from the rockets.

(on camera): Yeah, there's a shelter here. Let's get in it.

(voice-over): Another air raid siren drives us from our vehicle, forcing us to shelter in a hardened bunker nearby.

(on camera): We were gist leaving Kiryat Shmona when the air raid siren went off again so we thought it would be best to take cover. In this area, so many rockets have come in, that it's just not worth taking a chance, they can land literally anywhere.

(voice-over): And it wasn't just us seeking cover, moments later, the fire captain ducked inside. From the bunker, we can hear the sounds of Katyushas hitting home.

The Israelis fire back with rockets of their own, then the air raid sirens again. Four times in a half an hour. It's just another typical day for these emergency workers, dodging rockets, dowsing fires.

UNIDENTIFIED MALE: Go back. It's dangerous now.

ROBERTS: It is stressful work and it shows in the anger firefighters have for Hezbollah leader Hassan Nasrallah.

UNIDENTIFIED MALE: Nasrallah is very stupid man because he make war about nothing. Nothing.

ROBERTS (on camera): Israel's prime minister has recommended his government approve the U.N. resolution, but that won't happen until the next cabinet meeting on Sunday. So the Israeli army has at least until then to hit as many Hezbollah rocket sites as possible. But the campaign to eliminate those Katyusha launch sites has been so ineffective; it's not clear what that extra time will give them.

John Roberts, CNN, along the Israeli-Lebanon border.

(END VIDEOTAPE)

WHITFIELD: And still to come, President Bush speaks out about the continuing dangers of terrorism and why Americans must stay vigilant.

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