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Plant Explosion in Louisiana; Iran's Response To U.N. Demands Isn't Sitting Well With Bush Administration; U.S. and New Zealand Say No Negotiations To Kidnappers Of Two Fox Journalists; Apple Laptop Battery Recall; Two California Lawyers Rush to Karr's Early Defense; Northwest Flight Diverted, Passengers Released; Plan B Goes Over-The- Counter

Aired August 24, 2006 - 13:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.
Iran and the nuclear threat. Are America's spy agencies spying enough? The ominous warning signs. Obvious or obscure?

Buy or sell. The eternal question. Whether your property is worth it or not, you may be asking for too much cash.

She vanished on the way to school. Now a stunning discovery. How this teenager, wrapped in a blanket, escaped her basement prison after eight years in captivity. LIVE FROM starts right now.

We've been following an explosion in Louisiana. Let's get straight to Carol Lin. She's got all the details on this developing story -- Carol.

CAROL LIN, CNN ANCHOR: Kyra, now 10 explosions reported in Camp Minden, with is a bomb recycling plant in north central Louisiana. On the telephone with me right now is Lieutenant Colonel Carl Thompson. He's with the National Guard. He's the assistant commander at Camp Minden where these explosions took place.

Lieutenant Colonel, can you give us an idea of what's happening right now? I know there are several evacuations, two schools, even a prison. Do you know what caused these explores?

LT. COL. CARL THOMPSON, LOUISIANA NATIONAL GUARD: Of course we know the area that it occurred in. It's in an area that is operated by a commercial manufacturer that demilitarizes munitions. The first fire was reported at 8:30. Since then, all non-emergency personnel have been evacuated from Camp Minden.

The Webster Parish sheriff's office is handling the evacuation of any residents in the immediate area -- inside the area. State police is involved with any road closures. And any school evacuations is being coordinated by the Webster Parish school board.

LIN: Do you know what caused the explosion, though? I mean there was a fire and then a series of explosions. What happened?

THOMPSON: Well, there was a fire reported at 8:30. There was a small explosion that occurred at 8:40. At that time, we evacuated all personnel from the immediate area. No known injuries. All personnel accounted for by name. And then since then, and I don't know if you heard that, there was another explosion that occurred while I'm talking to you.

LIN: All right. Can you give us an idea of what you think is actually exploding?

THOMPSON: It's -- I'm not totally familiar with the operations of this private company, but they demilitarize munitions. So it's the munitions that they're involved with, the demilitarizing.

LIN: So for how much longer do you expect these explosions to continue then?

THOMPSON: I would not hazard a guess because we'll -- we do not fight explosive fires. We do not endanger personnel by putting them in harm's way. So we have everyone pulled back. We're not fighting the fire at this time. We're allowing it to burn out.

LIN: Lieutenant Colonel, when we take a look on the Google map of Camp Minden, there are several different buildings. It's a rather large complex there. All of that has been shut down. Interstate 80, also, traffic has been shut down because it skirts the northern border of Camp Minden. But it's a very, very large complex. Do you have any idea exactly which building this is happening in?

THOMPSON: Yes. I know exactly. It's in an area called e-line. It's -- Camp Minden is a large installation, 15,000 acres. This is occurring in an area that's approximately 100 acres in size inside that e-line area.

LIN: All right. Lieutenant Colonel Carl Thompson with the National Guard, assistant commander at Camp Minden. Appreciate the time.

We're going to be following the story throughout the afternoon, Kyra, because the sheer number of evacuations. At first voluntary, and now mandatory. Eight hundred people in the town of Doyline voluntarily been asked to leave. All the employees, according to the lieutenant colonel, are safe. This event happening starting at about 8:30 this morning. So right now at least 10 explosion, possibly 11, as that lieutenant colonel was just pointing out, one had just gone off during our interview.

PHILLIPS: All right, Carol Lin, appreciate it.

Well, ultimatum, response, dialogue or discord? Iran's response to the U.N.'s demand that it halt uranium enrichment isn't sitting well with the Bush administration and at least some of its allies. And that means it's lighting up President Bush's radar even on his long weekend in Maine. CNN's Elaine Quijano is in Kennebunkport -- Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kyra. Well, the president is here attending a wedding -- or to attend a wedding this weekend in Kennebunkport. But on his way over, the president actually engaged in some telephone diplomacy. According to White House Spokeswoman Dana Perino, the president talked to the prime ministers of Italy and Germany. And the topic, Lebanon and Iran.

Now the White House is still pointing to that August 31st deadline for Iran to take up that package of economic incentives and for Iran to stop its uranium enrichment program. But it's not clear right now what the "or else" is. What we do know is that U.S. officials have certainly said that they will move for some quick action at the U.N. Security Council if, in fact, Iran does not comply. But it's not clear whether or not China and Russia will back that.

In the meantime, as we know, yesterday came the only formal response so far from the United States to the Iranian response. That coming in the form of a statement issued by the State Department saying that the Iranian response falls short -- Kyra.

PHILLIPS: Elaine, now why is the president -- well, I guess maybe I should ask why it took the White House so long to respond to what was coming out of Iran and where it stands right now.

QUIJANO: Well, obviously, they're being very careful in what they say and, at the same time, you had a rather lengthy response to go through. White House officials knew on Tuesday, of course, that there was a response coming. They knew that it was going to take some time to digest. And they were even saying that, in fact, you should expect it to take some time for them to get through all of the information and carefully craft a response.

Now we also know there has been much going on behind the scenes to see whether or not China and Russia would back sanctions, whether or not they could get them on board in case Iran decides by that August 31st deadline, which they're still looking at the White House says, that they will not, in fact, move forward and do what the international community wants.

But the U.S. is being very careful. They don't want to make this look like a U.S. versus Iran kind of situation. Instead, they are looking at this in terms of the international community, trying to get international consensus so they can therefore say, it is not just the United States that is finding issue with this, it is the world community -- Kyra.

PHILLIPS: Elaine Quijano, thanks so much.

Well, Iran offers talks, the west disagrees, more consultations, counter proposals, terms and ultimatums, all the while the lights stay on in Iran's nuclear facilities.

Let's fill in some more of the details with the only U.S. television network correspondent now in Tehran, CNN's Aneesh Raman.

(BEGIN VIDEOTAPE) ANEESH RAMAN, CNN CORRESPONDENT: From Iran, the answer is no, it will not suspend its nuclear program by the end of the month, as the U.N. Security Council has mandated. So why then did Iran offer a new round of negotiations, a new formula to resolve the crisis? The Iranian strategy, it seems, is to present itself as eager for compromise, eager to find a diplomatic solution. And we have seen a softening of Iran's stance.

First, it says its willing to slow down its nuclear program to appease international concerns. And there are suggestions Iran could, within negotiations, talk about suspending its nuclear program. We've heard up till now every Iranian official say suspension and any talk of it isn't on the negotiating table.

But in a larger sense, this is Iran showing itself as a rising power in the region. Saddam Hussein's Iraq was really the only balancing power here. With Saddam gone, Iran has gone stronger by the day. And with support for Hezbollah in Lebanon against Israel and with support among the Shia militias in Iraq, Iran sees itself as having influence throughout the region and it wants respect. And it feels that it deserves the right to pursue what it has maintained is a peaceful civilian nuclear program.

Where this leaves the world now is a diplomatic standoff that now is set to take place at the U.N. in early September.

Aneesh Raman, CNN, Tehran.

(END VIDEOTAPE)

PHILLIPS: No negotiations. That's the word from both New Zealand and the U.S. to the kidnappers of two Fox journalists in Gaza. We learned only yesterday who claims to be holding Steve Centanni and Olaf Wiig and what the group wants. CNN's Chris Lawrence is following developments now from Jerusalem -- Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Kyra, the American authorities here in Israel are calling in reinforcements with the hope that very soon they will be able to have some sort of communication with the kidnappers.

(BEGIN VIDEOTAPE)

STEVE CENTANNI, FOX NEWS CORRESPONDENT: Been taken captive in Gaza.

LAWRENCE (voice-over): After more than a week with nothing to go on, authorities now have a videotape and written statement from the kidnapper to bolster the intense search for two journalists. The Holy Jihad Brigades has promised to free them if Muslim prisoners are released from American jails by Saturday.

UNIDENTIFIED MALE: We don't make concessions to kidnappers. We don't intend to do that.

LAWRENCE: The American consul (ph) general told me they're working closely with Palestinian security forces. And additional help is on the way from Washington.

UNIDENTIFIED MALE: People who have experience in hostage situations. And they're going to be coming out here in the next couple of days to support what we're doing here in the consulate.

LAWRENCE: Fox News correspondent Steve Centanni and photographer Olaf Wiig were kidnapped at gunpoint August 14th. They were not seen again until this videotape was released Wednesday.

CENTANNI: Ask you to do anything you can to try to help us get out of here.

LAWRENCE: On Thursday, Wiig's wife met with Palestinian officials in Gaza and taped a message of her own for the kidnappers.

ANITA MCNAUGHT, WIFE OF OLAF WIIG: It was a source of great relief and comfortable to me, and to Olaf and Steve's family and friends, to see that our men are being well looked after by you, the kidnappers, and we trust that you will continue to care for them until their release.

LAWRENCE: Prime Minister Ismail Haniyah condemned the kidnapping.

ISMAIL HANIYAH, PALESTINIAN PRIME MINISTER, (through translator): This approach contradicts all the morals and values of the Palestinian people.

LAWRENCE: Centanni and Wiig say they've been giving food, showers and clean clothes. But they urged authorities to apply political pressure in Gaza to help secure their safe release.

CENTANNI: We love you all and we want to go home. Hope to see you soon.

(END VIDEOTAPE)

LAWRENCE: A lot of people are hoping they see both journalists very soon. And the American authorities I spoke with say they believe that both men are still being held somewhere in Gaza -- Kyra.

PHILLIPS: Chris, what about other militant groups? Are they saying anything about this?

LAWRENCE: They are. They are condemning the kidnapping. Groups like Islamic Jihad have come out and condemned the kidnapping. And just today we learned that Palestinian prisoners -- a group of Palestinian prisoners sent a letter to these kidnappers and basically asking them to let the journalists go unconditionally and immediately.

PHILLIPS: Chris Lawrence live from Jerusalem, thanks.

Jesse Jackson also plans to go to the Middle East to see what he can do to help free the journalists and other hostages. He's going to join me from Chicago minutes from now to talk about it. Well, we've got some breaking news about a recall of more laptop batteries that could cause fires. Susan Lisovicz live from the New York Stock Exchange with that.

Boy, it started with Dell. And so many people, even in this newsroom, Susan, making calls about those batteries. It's gone to the next level?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, now it's Apple as well. This just came out just a couple minutes ago. This coming from the U.S. Consumer Product Safety Commission. Same issue, though. This is these lithium ion batteries with cells manufactured by Sony.

Apple Computer is saying that it's a voluntary recall involving its G-4 notebook computers and about 1.1 million of these battery packs are involved. About 700,000 battery packs in addition sold outside of the U.S. Again, this involved Apple.

And we do have an 800 number that you can call for more information. Obviously, you got to the Apple Web site as well. 800- 275-2273. Again, the same issue here about these batteries that could catch fire in laptop computers.

What we're also watching today, Kyra, is some very weak numbers out of the housing sector for the second day in a row. Sales of new homes last month fell more than 4 percent from June. That was the biggest drop since February. And down more than 21 percent from last year's levels. And the number of unsold homes on the market rose to their highest levels ever. The news coming just one day after a weaker than expected report on existing home sales.

Meanwhile, the median price of a new home came in at $230,000. Down more than 10 percent from the record price set in April. Those high prices prompted a building boom over the last year or so which helped create the current oversupply of new homes.

Builders are also reporting a rise in cancel orders, indicating that the slowdown in the real estate market may be even worse than it seems. And that could be bad news for homeowners and the economy as a whole because many people rely on the value of their homes as a source of equity and emergency cash through mortgage refinancing or home equity loans. It is so clearly a buyers market now, Kyra, after so many years of the opposite.

PHILLIPS: Well, let's talk about the numbers. And by any chance are we seeing an effect on Apple stock due to the report that's out now about the batteries?

LISOVICZ: It's just down about half a percent right now. Like I said, Kyra, it just came out in the last few minutes. And, in fact, we have it from the PR news wire. This is a very brief release from the U.S. Consumer Products Safety Commission calling -- saying that -- it is now on the Apple Web site as well? Yes, it appears to be in other publications as well. But this is something that a lot of people expressed concern about because so many of us use laptops. And because these batteries may not be -- and clearly now -- not restricted to Dell.

PHILLIPS: All right, let's check the other numbers.

LISOVICZ: OK. Well, we're not seeing a whole heck of a lot on Wall Street for a fourth day in a row, Kyra. You know, last week it was all about rallies, five days in a row. Today, it's about modest sell-offs. And here you're seeing it. Light trading again. Dow Industrials down 14 points. NASDAQ also down slightly.

And that is the latest from Wall Street. Coming up next hour, the deadline for Northwest Airlines flight attendants strike is fast approaching. Can the government stop it in time?

Kyra, back to you.

PHILLIPS: Thanks so much.

Well, no prescription necessary. An emergency contraceptive is finally cleared for over-the-counter sales. We'll have more about the so-called morning after pill when LIVE FROM returns.

(COMMERCIAL BREAK)

PHILLIPS: Well, we still don't know whether JonBenet Ramsey was anything more than a twisted fantasy for John Mark Karr. But Karr seems to be doing his best to incriminate himself. Not the best scenario for a defense lawyer. Yet, two California lawyers have rushed to Karr's early defense. CNN's Peter Viles has more from Los Angeles -- Peter.

PETER VILES, CNN CORRESPONDENT: Good morning, Kyra.

Well, John Karr is in his fifth day now in this Los Angeles county jail. There is still no official word either from the sheriff's department here, which runs this jail, or the sheriff's department in Boulder, which runs the jail up there, about when he will be transferred, handed over and extradited to Colorado. The D.A. up in Colorado saying very, very little about this case. In fact, nothing in public since last week.

There is, however, lawyers here in California who are saying something, the two you just mentioned, who say they are representing John Karr. We'll know if that's true when he shows up in court if they're there with him. But these lawyers came out yesterday.

One of them, Jamie Harmon, making the point that legally the transfer to Colorado is not a meaningful event. The meaningful event is if and when the D.A. up there finally comes forward and says, yes, we are formally charging him with a crime. This is Jamie Harmon making that case yesterday.

(BEGIN VIDEO CLIP)

JAMIE HARMON, KARR'S ATTORNEY: We don't even know if this case is going to get to court. You all are aware that the charges have not yet been formally filed against Mr. Karr. And the D.A. has 10 days to come and pick him up from yesterday morning at 10:15, 11:00, whenever it was that we finished up with court. And 10 days to come and get him and 72 hours from that point to charge him.

(END VIDEO CLIP)

VILES: Some new developments here up in Sonoma County, California. That is where five years ago John Karr was charged with possession of child pornography. The sheriff's department up there is breaking their silence about that investigation with some interesting tidbits.

They say at the time five years ago it was apparent to investigators that John Karr was fascinated with the JonBenet Ramsey murder. That he spoke extensively about it, sometimes seeming to put himself in the position hypothetically of the murder, trying to explain what the murder might have thought.

That said, during that investigation, the sheriff's department up there had no evidence of any confession and no evidence that John Karr had any meaningful details about the case that had been previously secret. That said, the sheriff's department says that five years ago they passed John Karr's name on to the FBI and to investigators in Boulder, Colorado. So we don't know what investigators in Boulder did with that tip. But we know that they received a tip on John Karr five years ago -- Kyra.

PHILLIPS: Peter, tell us about this Hollywood produce that Karr's family has enlisted to represent them. What's the deal with that?

VILES: Well, this is another of the cast of characters that is growing in this case. This is a guy named Larry Garrison would came forward yesterday here in Los Angeles and said I have been retained by the Karr family in Atlanta to represent their interests in a number of ways. He's acting as a spokesman, or at least he was yesterday.

He says he has the rights to John Karr's story. And if you go to this guys Web site, he has the rights to a lot of true crime stories, or he says he does. But he has only produced one story that we're aware of, a made for TV movie, starring Mary Tyler Moore.

So he is, in fact, a producer, but he says he has the rights to this story. He has also been quoted in other news outlets as saying he's going to try to get a top-rate high-profile defense attorney for John Karr, which is one reason we're not entirely certain yet who's going to represent John Karr when he finally has his day in court in Boulder -- Kyra.

PHILLIPS: Peter Viles, thanks.

Let's get straight to the newsroom now. Carol Lin working details on another developing news story -- Carol.

LIN: Kyra, you remember the Northwest Airlines flight that was diverted back to Amsterdam. Twelve people arrested in Amsterdam. We have just gotten word, according to the Reuters News Service, that Dutch authorities have released all 12 passengers who were arrested on that U.S. Northwest Airlines plane. That plane bound for Mumbai, India, originated in Minneapolis, St. Paul.

And a quote here from the prosecution on the ground in Amsterdam says, from the statement of suspects and witness, no evidence could be brought forward that these men were about to commit an act of violence. So this happened on Wednesday. They have been -- don't know if they've actually -- yes, they're going to release them. Don't know if they've actually been released yet.

We have now confirmed it, Kyra. Just got that in my ear. So those 12 passengers released.

PHILLIPS: All right, Carol, thanks.

Well, it turns out that there will be a morning after, at least a morning after pill, after a fierce internal battle. The Food and Drug Administration rules Plan B, a form of so-called emergency contraception, can be sold without a prescription to women who are 18 and older. Girls 17 and younger will still need a doctor's note and all buyers will have to show proof of age.

With more of Plan B and how it works, here's CNN's Dr. Sanjay Gupta.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT (voice-over): Commonly referred to as the morning after pill, Plan B was first approved for prescription use in the United States in 1999. Since then, effectiveness, relatively low side effects and ease of use have made it the most common form of emergency contraception. On average, most women have an eight percent chance they will become pregnant after having unprotected intercourse. If taken within 72 hour, though, Plan B can lower that chance to one percent.

Here's how it works. Plan B contains high doses of progesterone. That's a birth control hormone that tells the brain not to ovulate or release an egg. Now, if ovulation has already happened when the pill is taken, the hormone works to prevent fertilization by making it harder for the sperm to penetrate the egg. And if fertilization has already occurred, then most doctors believe the morning after pill can prevent the fertilized egg from ever attaching to the wall of the uterus.

Misconceptions about Plan B have driven the controversy surrounding this drug. Some believe that it can cause birth defects if the pregnancy develops or even cause an abortion. Others believe that no such thing could occur because Plan B prevents the fertilized egg from attaching to the uterine wall.

DR. CHARLES J. LOCKWOOD, YALE UNIVERSITY SCHOOL OF MEDICINE: Taking the morning after pill definitely does not harm an established pregnancy. It doesn't cause birth defects. Doesn't cause abortions of implanted, healthy pregnancies. GUPTA: In fact, when a pregnancy occurs, hormones in a woman's body changes dramatically and suddenly the body is awash in progesterone. Plan B would simply adds more.

Another misconception is to confuse Plan B with RU486, the abortion pill. Even doctor's offices can mistake the difference. Lalena Garcia wanted to prevent pregnancy and, as most people would, called her doctor's office for a prescription.

LALENA GARCIA, MORNING-AFTER PILL USER: So I called and I said, hi, I need to make an appointment to just come in and get a prescription for the morning after pill. And the receptionist said, oh we don't have that. No, no, no, not RU486. I want emergency contraception. I want the morning after pill.

GUPTA: In fact, the two drugs work in literally opposite ways. Instead of increasing progesterone levels the way Plan B does, RU486 lowers progesterone levels, inducing ministration and the loss of an early pregnancy.

Other questions about Plan B don't have such clear-cut answers. Opponents argue widespread access will encourage irresponsible sexual behavior among young people and increase sexually transmitted diseases. Two large studies have not supported those claims. And now approved for over-the-counter use or not, that controversy is likely to continue.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: Coming back, we're going to take a look at the storms brewing around the country as CNN marks one year since Hurricane Katrina. Reynolds Wolf working hard.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SOLEDAD O'BRIEN, CNN ANCHOR: Get a look at the weather for the day ahead. Chad Myers is at the CNN Center with the latest. You're talking about the tropical depression, now a tropical storm.

CHAD MYERS, CNN METEOROLOGIST: Correct. Yes, Tropical Storm Katrina was tropical depression number 12, but now it's gained enough strength to get a name. Depressions don't get names, they just get numbers. But now it has a name. The 11th named storm of the year. So we're well on our way.

Here you go, from Nassau, right on back into Miami. That's where the storm is going, gathering strength. This is very warm water here. This is premium gas in this storm right now because the warmer the water is, the stronger the storm gets and the quick it gets that way.

So by late Thursday night, into Friday morning, overnight Friday morning, that's when we're probably going to see landfall. But certainly south Florida in the teeth of this storm. Then it gets into the Gulf of Mexico. Then it turns to the right and possibly somewhere along the Gulf Coast.

(END VIDEO CLIP)

PHILLIPS: Well, stormy weather at sea. And you can be sure that Reynolds Wolf is keeping an eye on it all from the Weather Center. So I wonder if you're going to be able to make the predictions like Chad did a year ago about Katrina and then, low and behold, look what happened.

(WEATHER REPORT)

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