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Anderson Cooper 360 Degrees

American Hostage Reportedly Killed in Iraq; U.S. Hands Over Sovereignty

Aired June 28, 2004 - 19:00   ET

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

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


ANDERSON COOPER, HOST: Good evening from Baghdad. I'm Anderson Cooper.
Another American hostage reportedly killed as Iraq takes over sovereignty.

360 starts now.

A new day dawns in Iraq as the U.S. hands over sovereignty early behind the scenes of the highly anticipated handover. The new government calls on all Iraqis to fight terrorists. But can it really handle the security challenge?

After the handover of sovereignty, will the handover of Saddam come next?

A missing Marine, the sword of death hanging over his head. How did Corporal Wassef Hassoun fall into the wrong hands?

And does a change in leadership really change anything as far as U.S. troops are concerned? A look at the timetable for U.S. forces overseas.

ANNOUNCER: This is a special edition of ANDERSON COOPER 360: Iraq, the Next Chapter, with Anderson Cooper reporting live from Baghdad.

COOPER: Good evening from Baghdad.

The day's early good news, the handover of power to Iraqi authorities, was overshadowed within the hour by some very bad news indeed. Al Jazeera is reporting now that it has a videotape believed to show the killing of an American soldier who has been missing since his unit was ambushed on the ninth of April.

CNN's Pentagon correspondent Barbara Starr has details on the fate of Specialist Matt Maupin. Barbara?

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

Well, let's be very clear what the Pentagon is saying at this hour is they are aware of the tape. Some officials say they know what is on the tape, but what they do not know is whether that tape is Specialist Maupin or not. Senior officials telling CNN this evening here at the Pentagon that the tape is inconclusive, that it is murky, that it is of poor quality, and they at this hour simply cannot confirm that it is Specialist Maupin.

However, they say, it does show someone being shot.

Now, earlier today, there was enough concern about this that the Army sent the casualty assistance officer, if you will, the liaison working with the Maupin family, to contact the family, to tell them that this tape was circulating, that there was a lot of media attention, to forewarn the Maupin family that all of this may be coming.

But tonight here at the Pentagon, officials still say that the word is it is inconclusive to them. There is no body that has been found, and they simply do not know if indeed that tape that Al Jazeera has is that of Specialist Maupin, Anderson.

COOPER: Barbara, there really has not been much news about Specialist Maupin since that first videotape surfaced. So this would be really the first word we, at least, publicly have heard. Has the Pentagon heard any information? Have they been following up on reports over the last several months?

STARR: Well, that's exactly right, Anderson. It was on April 9 that Maupin's convoy was ambushed just outside of Baghdad, when the insurgency was truly at its height back in the springtime. There was, in fact, of course, an initial videotape on which he appeared, identified himself, and it was very clear to his family that it was Keith Matt, Keith Matthew Maupin.

Since then, there had been no word of him, absolutely nothing. Here at the Pentagon, reporters asked regularly, in Baghdad, reporters asked regularly. No word. So if this does prove to be him, it would be the only word of his fate since he was initially captured.

COOPER: All right. And a sad and sickening word it would be. Barbara Starr, thanks for the Pentagon following this late-breaking story for us. We'll continue to bring you any updates as warranted throughout this hour.

If you've seen any of today's news coverage out of Iraq, you have no doubt heard the same word over and over. I think I used it myself several times today, "historic." Today's handover, yes, was historic, but it was also surprising, the timing two days earlier than anticipated.

When the subdued ceremony was over, the head of the now-defunct Coalition Provisional Authority, Ambassador Paul Bremer, the man who has ruled Iraq, left, another historic moment.

And this actual footnote to history, a piece of paper passed from Condoleezza Rice to President Bush from the moment of handover. "Iraq is sovereign," the note read. The president's response, written in the margin, "Let freedom reign!" (BEGIN VIDEOTAPE)

COOPER (voice-over): No one thought it would happen like this. In part because of concerns an elaborate ceremony might prove a tempting target, the handover came unexpectedly early, with little fanfare, little notice, just a short ceremony, and the deal was done.

Ambassador Paul Bremer, the man who ran the country for the last year, presided over the event.

AMB. L. PAUL BREMER, FORMER U.S. CIVILIAN ADMINISTRATOR: The Iraqi interim government will assume and exercise full sovereign authority on behalf of the Iraqi people. We welcome Iraq's steps to take its rightful place of equality and honor among the free nations of the world.

AYAD ALLAWI, IRAQI PRIME MINISTER: This is a big day for us. And Iraq is for the first time now (UNINTELLIGIBLE) own problems.

COOPER: And the head of the new government quickly laid out his priority.

ALLAWI: The first thing is really to ensure the safety of our people, and to ensure the safety of the country.

COOPER: At a ceremony later in the day, the members of the government were officially sworn in, and Prime Minister Allawi addressed the nation, asking all Iraqis, including supporters of the former regime, to join in fighting terrorism.

ALLAWI (through translator): I call on the heroes of the past, all the regions of Iraq, and the sons of Iraq, and I call on their efforts to eradicate foreign terrorists who are killing our people and destroying our country.

COOPER: As the Iraqi flag, the same one used under Saddam Hussein, flew over the capital and ceremonies across the country marked the handover, Paul Bremer said good-bye to the nation in a pretaped message.

(BEGIN VIDEO CLIP)

BREMER: I leave Iraq gladdened by what has been accomplished and confident that your future is full of hope. A piece of my heart will always remain here in the beautiful land between the two rivers, with its fertile valleys, its majestic mountains, and its wonderful people.

(END VIDEO CLIP)

COOPER: Immediately after the handover ceremony, Bremer, who appeared to have a tear in his eye, hopped on a plane and left the country, leaving behind a sovereign nation, within limits, and secured by more than 100,000 foreign troops, a new country, albeit one with tremendous problems to face.

(END VIDEOTAPE) COOPER: Tremendous problems indeed. Here's just an indication of how complicated the world is right now. To talk with dozens of European leaders and NATO leaders, President Bush flew from Dublin, Ireland, to Istanbul, Turkey, which is where he learned about today's developments in Baghdad.

CNN's senior White House correspondent John King has more now on how exactly things happened and when.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): It was a tightly held secret as the president arrived for Monday's NATO summit session. Then his note from his national security adviser. "Iraq is sovereign." Mr. Bush scribbled his reaction in the margin, "Let freedom reign."

Then, a glance at his watch to mark the moment, and a celebratory handshake with the leader at his side from the beginning of the Iraq debate. This time, no banners declaring "Mission Accomplished." But while Mr. Bush was more subdued, he was optimistic and by no means apologetic.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We pledged to end a dangerous regime, to free the oppressed, and to restore sovereignty. We have kept our word.

KING: The president called the early transfer of power a tribute to Iraq's new government and a message to those behind the violent insurgency.

BUSH: Their bombs and attacks have not prevented Iraqi sovereignty, and they will not prevent Iraqi democracy.

KING: From a legal standpoint, occupation over after 14 months, but 138,000 U.S. and 12,000 British troops remain, and Prime Minister Blair warned of difficult and dangerous days ahead.

TONY BLAIR, BRITISH PRIME MINISTER: We'll stay for as long as it takes to make sure that that support is there for them, so that we help them to that freedom and democracy they want to see.

KING: The NATO alliance quickly pledged help training Iraqi security forces. Not too long ago, Mr. Bush had hoped for NATO troops, not just training, but he compromised in the face of familiar opposition

JACQUES CHIRAC, PRESIDENT OF FRANCE (through translator): It is not the vocation of NATO to intervene in Iraq.

KING: Administration officials say the idea of transferring sovereignty ahead of schedule gained steam about a week ago, that Iraq's new prime minister gave the final OK Sunday night, saying the sooner he took power, the sooner he could launch new efforts to improve security.

BUSH: And our job is to help the Iraqis stand up forces that are able to deal with these thugs.

KING (on camera): With the political handover now complete, U.S. officials say the new government likely will take legal custody of Saddam Hussein within days, but U.S. troops will continue to help guard him. As one senior U.S. official put it, "We want to make sure he is put on trial, not snuck out a back door or strung up a flagpole."

John King, CNN, Istanbul.

(END VIDEOTAPE)

COOPER: Well, coming up later on 360, "TIME" magazine's Michael Ware gives us a dangerously close-up look as how Iraq's insurgents see themselves as part of a global jihad against America. We should tell you this right now, his assessment and his fears will chill you to the bone.

(BEGIN VIDEO CLIP)

MICHAEL WARE, "TIME" MAGAZINE: The very thing that the coalition that we say we came here to prevent, terrorists, terrorist operations, training camps, we have fermented. We have spawned it. Without us, it couldn't have happened.

(END VIDEO CLIP)

COOPER: We're going to have more from Michael Ware of "TIME" magazine later on 360.

A young American Marine of Lebanese descent went missing from his unit nearly a week ago, and now the family of Wassef Ali Hassoun says that it is him behind a blindfold with a sword dangling above his head in the latest videotaped threat from terrorists in Iraq.

CNN's Ed Lavandera has more now on the mysterious disappearance of and the sickening reappearance of a Marine from Utah.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Marine Corporal Wassef Ali Hassoun was last seen on June 19. His family says the U.S. military told them he was missing but couldn't offer more details. Then Hassoun turned up on Arab television, blindfolded, with a sword held over his head, the voice on the tape saying Hassoun would be killed if the U.S. fails to release all Iraqi prisoners.

Hassoun's father lives in Lebanon, and today asked the Islamic militants to spare his son's life.

(BEGIN VIDEO CLIP)

MOHAMMED HASSOUN, FATHER OF MISSING U.S. MARINE (through translator): I plead the authority of Islamic scholars and everyone who has mercy in his heart and fears God. I ask them for the sake of God, Prophet Muhammed, and their children to release my son, and I thank them, and they will have great reward from God.

(END VIDEO CLIP)

LAVANDERA: But while the video images from Iraq seem to suggest Hassoun has been kidnapped, the U.S. military says it cannot confirm that story yet. The voice on the videotape says Hassoun was lured away from a U.S. military base near Fallujah.

Hassoun is a 24-year-old Arabic translator with the 1st Marine Expeditionary Force out of Camp Pendleton, California. Hassoun has two brothers that live in the Salt Lake City suburb of West Jordan. The family is trying to make sense what has happened to the 24-year- old Marine and have been embraced with prayers and support from the Muslim community here in Utah.

SHUAIB-UD DIN, IMAM, ISLAMIC SOCIETY OF SALT LAKE CITY: The whole war in general has been difficult to explain and very upsetting. This is just one more ugly chapter of this war in Iraq. And we just hope for an end to this war soon, you know, very quick end to this upsetting situation and safe return for everyone.

LAVANDERA (on camera): Here in West Jordan, Utah, there are plans for a couple of vigils tonight, one at a local mosque, where they'll be reading from the Quran and praying with the family of Corporal Hassoun, and we also understand that a family spokesperson will be coming out in a short while, in about an hour and a half, to make another statement.

And we do understand that much of what the family has been doing over the last day and a half or so is trying to piece together all the varying reports as to what exactly has happened in this case. And that is what they're sifting through and awaiting the latest word, not only from the U.S. military but also from watching Arab television, Anderson.

COOPER: Well, certainly the thoughts and prayers of a lot of people around the world are with him and his family at this point tonight. CNN's Ed Lavandera, thanks very much.

This leads us to our buzz question. What do you think? Do you think the new Iraqi government will be able to solve this country's security problems? Log on to CNN.com/360, cast your vote. We'll have results at the end of the program tonight.

360 next, Saddam Hussein about to make the mother of all perp walks. The former dictator soon to be placed in Iraqi hands in front of TV cameras. Find out whether he'll face death for the murder of thousands.

Plus, sovereignty and insecurity, the battle to keep the peace and the American general who could make all the difference. I'll talk with him.

Also, the politics of a handover. Will it help President Bush come November? We have the latest polls.

First, let's take a look at your picks, the most popular stories on CNN.com right now.

(COMMERCIAL BREAK)

COOPER: Perhaps the most enduring image of the war in Iraq, the toppling of the Saddam Hussein statue in Baghdad's Firdos Square. That was more than a year ago. Now, with the transfer of power complete, Iraqis here in and across the country are awaiting the turnover of the former dictator.

Today we have a pretty good idea of when that will happen, the new Iraqi government promising to give Hussein something he never gave his countrymen, a fair trial.

CNN's Adaora Udoji reports.

(BEGIN VIDEOTAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): Saddam Hussein, the ousted dictator, will likely be in Iraqi legal custody within a week.

ALLAWI: The legal advisers, all the documents are being done with the coalition and with the multinational force.

UDOJI: When it happens, Saddam, accused of multiple atrocities, including murdering tens of thousands of people, will face those with the most scores to settle. Iraqi authorities describe a formal transfer. Two U.S. soldiers will handcuff the former leader, turn him over to four Iraqi soldiers, who will take him into an Iraqi court. Saddam will hear his rights and be read an arrest warrant, potentially by a judge he appointed.

Still, U.S. forces will remain responsible for keeping Saddam locked up, they are careful to point out, at the request of Iraqi authorities.

BRIG. GEN. MARK KIMMITT, U.S. ARMY: We will maintain the physical custody, because there is no facility. So the prime minister has asked us to retain physical custody.

UDOJI: If Saddam ever escaped, it could be catastrophic, spreading fear, disrupting efforts by the new government. His trial, say many, critical to Iraqi's progress.

WALTER RUSSELL READ, COUNCIL ON FOREIGN RELATIONS: Even by the horrible standards of world history, Saddam Hussein has kind of earned a prominent place in the mass killers and psychotics. So dealing with this, it will remind Iraqis how important it is for them to change their country.

UDOJI: A trial will send the message, Saddam's ruling days are over. He'll face justice, and the country can move on.

Adaora Udoji, CNN, New York.

(END VIDEOTAPE) COOPER: Here's a quick news note for you on last-minute immunity for U.S. troops and contractors. Just hours before the transfer of power today, outgoing U.S. civilian administrator Paul Bremer signed a revised Order 17. The decree gives foreign military forces such as U.S. troops and contractors in Iraq immunity from prosecution. Unless the interim government reverses the order, it will be in place until the election of a new Iraqi government late this year or early 2005.

360 next, celebration and hesitation tonight in the Arab world. How the handover of power is playing amongst the people.

Also tonight, how the insurgency in Iraq may be taking an ominous turn, evolving, morphing into a global jihadist war, a war "TIME" magazine's Michael Ware says we are likely to fight for the rest of our lives. You will not want to miss my discussion with him. Chilling.

And a little later, hostage taking in the new Iraq, not just Americans. We'll look at why Iraqi doctors are now prime targets. We return in a moment.

(COMMERCIAL BREAK)

COOPER: Just some of the scenes of celebration today, from the new prime minister to the streets of Baghdad, celebrations that were echoed by President Bush, who calls this a day of great hope for Iraq. But interestingly, the headline on the Web site of Arabic satellite news network Al Jazeera isn't quite as optimistic. It says Iraqis are skeptical of the transfer of power. Like the U.S., the media here in the Arab world have different ways of telling the exact same story.

CNN's senior editor for Arab affairs, Octavia Nasr, shows us how the story is being reported throughout the Arab world.

(BEGIN VIDEOTAPE)

OCTAVIA NASR, CNN SENIOR EDITOR FOR ARAB AFFAIRS (voice-over): Sovereignty came back to Iraq, says Al Arabiya, as its correspondent roams the streets of Baghdad in search of reaction. He notes Baghdad residents are pleasantly surprised with the early handover, and that now a sense of relief reigns over the region.

"We are very happy," says this woman. "But at the same time, we are anxious to see real security, peace, and stability." Another man also pleased, but added, "I wish for the Americans to leave and make it a complete handover."

The newly formed Iraqi police, taking the lead, securing the streets of their capital city. This one doesn't mind taking charge two days earlier. "We have an emergency plan," he says. "Our efforts are doubled, and the police staff is doubled as well."

Al Jazeera went beyond Iraq's borders to check the pulse of major Arab capitals, such as Cairo, Rabat, and Beirut, followed by a special program looking at Iraq at a crossroads. The tone remains optimistic, with a bit of skepticism from the Baghdad correspondent. "A strange timing for a strange sovereignty," she says. And security still weighing heavily on Iraqis' minds. Otherwise, ordinary Iraqis not able to contain their emotions. As this woman, who says she feels for the first time in many years that they are Iraqis, belonging to a sovereign Iraq, hoping, she says, security will take hold, and then everything will fall into place.

In the surprise of an early handover, even the Arab networks captured candid reactions, positive feelings, at least in the first hours of a new nation, as Iraq begins its test of sovereignty and patriotism.

Octavia Nasr, CNN, Atlanta.

(END VIDEOTAPE)

COOPER: Some of the many different ways this story has been covered in the Arab world.

For more on how the Arab and Muslim world is reacting to the handover, I'm joined from Washington by Samar Shehata, a professor at Georgetown University Center for Contemporary Arab Studies.

Samar, thanks for being with us again.

Your reaction to today's events. What is the key move that the Iraqi government must make now in order to show people that they are really sovereign and really can do the job of governing this country?

SAMAR SHEHATA, GEORGETOWN UNIVERSITY: Sure. Well, today's events were certainly positive. But the key thing remains security, providing security for ordinary Iraqis. That is the number-one item on the agenda.

But the other thing that the Iraqi government can do to display the fact that they actually are sovereign is to have a -- have input into the military operations that the coalition forces do or do not undertake in the coming weeks. Fallujah, you'll remember, was a disaster in terms of Iraqi public opinion. There was widespread condemnation of it. And if something like that were to happen again, I think Iraqis would stand up and say, What kind of sovereignty is this?

So if the interim government is involved, coordinating with the Coalition Provisional Authority, what -- I'm sorry, with the coalition forces in terms of what kind of military action is taken, that will certainly have a positive impact on how they're viewed by ordinary Iraqis.

COOPER: Already we have seen some moves for sort of Iraqi solutions to these problems, Iraq's Prime Minister Allawi suggesting, perhaps, an amnesty for those who don't have blood on their hands but for those who have opposed the coalition thus far. Do you anticipate seeing more of those sort of uniquely Iraqi solutions?

SHEHATA: Well, that's -- I do, actually. And he's suggested more than just the amnesty. He also has talked about the possibility of martial law being imposed in parts of Iraq, curfews and so on, in the coming days. And he has also talked about the possibility of reconstituting the Iraqi army, which was disbanded by the United States after the war.

I think those are potentially positive steps, and those certainly are demonstrations of sovereignty that Ayad Allawi and the government can do in the coming days.

COOPER: Because so many people are talking about security and want to see some sort of strong move from this government, and yet, you know, I mean, as you well know, the police are incredibly poorly equipped. They're poorly funded at this point, and they really lack morale.

SHEHATA: Well, it's a very serious question. And that is, what can the Iraqi security forces that are ill equipped, relatively new, understaffed, and poorly trained do that the American forces, numbering over 140,000, couldn't do? And that's why many people are skeptical.

But nevertheless, moves like the proposed amnesty are intended to isolate the most radical elements of the insurgency and allow everyone else in the country to rally behind this new interim government. We'll have to see whether it works or not.

COOPER: And we're going to talk about those radical elements in the insurgency in just a moment.

Samar Shehata from Georgetown University's Contemporary Arab Studies Department, thank you very much for being with us.

We'll be right back.

SHEHATA: You're welcome, Anderson.

(COMMERCIAL BREAK)

COOPER: I'm Anderson Cooper, live in Baghdad.

Has the United States opened a Pandora's box of terrorism in Iraq? In a moment, Michael Ware of "TIME" magazine takes you up close with terrorists in Iraq who see themselves as fighting a global, never-ending jihad. We'll be right back.

(COMMERCIAL BREAK)

COOPER: Welcome back to a special edition of 360, live from Baghdad. I'm Anderson Cooper.

Reports are just coming in now that an American hostage has been killed here in Iraq. Army Specialist Matt Maupin was captured April 9 and seen in this videotape shortly afterwards. Today, in a communique, a terrorist group said it had killed him because the U.S. refused to change its policy in Iraq. Now, the communique, which was received by the Al Jazeera television network, was accompanied by a videotape which supposedly shows the killing. The Pentagon says it is aware of the videotape but called it inconclusive, and could not confirm Maupin's death.

At the same time, another American serviceman, Marine Wassef Ali Hassoun, has been kidnapped as well by terrorists. Hassoun was seen on a videotape. The broadcast, it was broadcast on Sunday on Al Jazeera. On the tape, a speaker threatened to kill him unless U.S. military authorities released Iraqi prisoners.

Meanwhile, the transition of power that everyone thought was going to take place on Wednesday took place today instead, quickly, quietly, efficiently, and without a hint to anyone beforehand. Iraq is now the lookout of the Iraqi government. As for L. Paul Bremer, the long-time steward of the coalition authority here, well, he paused barely at all before heading home.

What were L. Paul Bremer's headaches have now been inherited by a 59-year-old surgeon who spent many years in exile and was once nearly assassinated in London by henchmen of Saddam Hussein.

CNN's senior international correspondent Christiane Amanpour reports now on the man who stepped up to the podium today to begin charting the course for Iraq.

(BEGIN VIDEOTAPE)

CHRISTIANE AMANPOUR, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Before a bank of Iraqi flags, Prime Minister Ayad Allawi set out his agenda, with a wide range of promises on such challenges as services, the economy, democracy, and especially security.

ALLAWI (through translator): I warn the forces of terror once again, we will not forget who stood by and against us in this crisis. Here, I arouse the efforts of people to defend the sacred places in the country.

AMANPOUR: He offered a pardon for any Iraqi insurgents and former Saddam loyalists who did not have blood on their hands, that in return for information and cooperation in fingering the terrorists.

While he has repeatedly said he would impose emergency security measures, that's expected to fall short of full martial law. Allawi has yet to detail his security plan. It could include curfews and a ban on public gatherings.

As for the people, in Baghdad they welcomed their new sovereignty, and most yearned for a new strong man.

"I want to tell the government, May God make your work a success," says pensioner Hamid Abas (ph). "Take care of us, and be strong."

"Every Iraqi is happy with this day," says Amar Agrossa. "We want to rest. It's 13 or 14 months and we've got nothing. Wherever we go, there are explosions."

A brand new Iraqi flag now flies over this Green Zone, and this is once again sovereign Iraqi territory. But this country is also swept up in the terror of the insurgency. And so the mood can best be summed up as hoping for the best and preparing for the worst. Christiane Amanpour, CNN, Baghdad.

(END VIDEOTAPE)

COOPER: Speaking of hope, many think or hope anyway that today's transition may mark the beginning of the end of the worst in Iraq and therefore, also the end of the worst for a world plagued by terrorism. That, however, is not what Michael Ware of "TIME" magazine thinks. What he thinks, based on interviews with insurgents here, is enough to make your blood run cold. It did mine. We spoke earlier today.

(BEGIN VIDEOTAPE)

COOPER: The insurgent movement is changing, it's morphing. How so?

MICHAEL WARE, "TIME" MAGAZINE: There's been an evolution in the insurgency. What six to nine months ago was generally guerrilla war being waged by former military officers, these were men who considered their military duty was continuing, now fighting to remove an occupier. These very same men however, six months later, have fundamentally changed. All the baggage of a freedom fighter has been tossed aside. And what's replaced it is Jihad.

COOPER: And part of this is a move of necessity that once Saddam was arrested, a lot of the money dried up, and therefore, they had to go elsewhere and sort of appeal to more hard-line foreign elements to get funding.

WARE: Earlier this year, from January to February, finances started to tighten up on the Iraqi resistance. The former regime figures those fighting for a free Iraq. At roughly the same time, the foreign Jihadis, the money channels that once funded the Jihad against the Soviets in the 1980s in Afghanistan, that same money, those same channels started filtering in here. With this money comes conditions. We give you the money to continue the holy war. But here is our Imam who will instruct you, here are some of our fighters who join you and guide you. Here is our ideological, theological belief that will bind you.

COOPER: And that spells bad news for the new government because Prime Minister Allawi has been trying to basically, in a sense, drive a wedge between these foreign fighters, making a distinction between these foreign fighters and Iraqis. You're saying it's a hard distinction to make in these times.

WARE: It's an impossible distinction to make now because they're operating as one cohesive group. The war in Iraq, when it first started after the fall of the regime, was a resistance. It was an insurgency. But now, in the last six months, it's become the centerpiece of the global Jihad that Osama bin Laden always intended to inspire with September 11.

COOPER: So what is their vision for Iraq? I mean do they want it to be what, Afghanistan?

WARE: I've been with Iraqis and foreigners in safehouses in and around Fallujah. These Iraqis now are growing the long beards of this extremist sect. I'm sitting in their houses. I have to pinch myself to remind me that I'm not back in Afghanistan where I've spent much time. On the walls, there's no pictures. Television is (UNINTELLIGIBLE). Air conditioning, any modern kind of pleasure or facility, music is banned.

COOPER: It's against their hard-line version of Islam?

WARE: Absolutely. You can't trim your beard now. Men I knew who two years ago under the regime were drinking and whoring and were just trouble makers, 12 months ago, may have curbed that and become nationalist guerrillas. Now these men don't even smoke cigarettes because a true jihadi doesn't do this, this brand of Islam will not tolerate that. That's the fundamental shift in these men. It is now an international fight. The very thing that the coalition -- that we say we came here to prevent, terrorists, terrorist operations, training camps, we have fermented. We have spawned it. Without us, it couldn't have happened. The jihadis, after September 11, had been looking for a platform.

COOPER: Now that the handover has happened, does the battle change? I mean, does their desire to create mayhem here, does that lessen. .

WARE: Absolutely not. However, these men who once just wanted a free Iraq with Iraqi solutions for Iraqi problems. Now they want an Islamic state. They want faithful obedience to the law of Allah. They want Sharia law. They want to be part of a broader Islamic caliphate movement across the entire Islamic world. This is the bin Laden, Al Qaeda inspirational message. And they want to maintain, they don't want to win to lose this war. What they're telling me is they just want to maintain perpetual Jihad. That's the end goal.

They welcome the American presence now, some of them, because, otherwise they say, and I'll quote, "we will have to follow them when we leave." What we've done is we've internationalized this fight and given a haven to other international fighters. The next September 11 if, God forbid there is one, could have among the 19 terrorists an Iraqi and the operation may even have been planned or formulated here. That's what we're coming to.

(END VIDEOTAPE)

COOPER: You're going to hear more of my gripping interview with "TIME" correspondent Michael Ware tomorrow night on 360. He'll talk about the threat from Abu Musab Al Zarqawi and his global Jihad movement. You won't want to miss that. It's not just contractors and U.S. troops being taken hostage here in Iraq. This is also a very dangerous time to be a doctor, an Iraqi doctor. To show you what we mean, Here's CNN's Harris Whitbeck. (BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): Dr. Abdul Kzar examines a patient in his Baghdad clinic, a routine checkup for his patient is anything but routine for the doctor. Two weeks ago, he was kidnapped leaving his clinic, held for four days, and released only after a ransom was paid.

DR. ABDUL KZAR, RELEASED BY KIDNAPPERS: They took me in a few seconds to their car, you see, and put me in the car in the back seat and closed my eyes.

WHITBECK: Practicing medicine, for him, is now calculating and taking personal risks.

KZAR: You are not safe. You are not secure. Probably somebody come to take -- to kidnap you again.

WHITBECK: Dr. Kzar is not alone. In recent weeks, as many as 100 physicians have been kidnapped in Baghdad. Health officials say others fled Iraq after threats. Kidnapping doctors is the latest blow to a medical system already near collapse. Iraqi medicine withstood years of an embargo that made access to equipment supplies and continuing education virtually impossible. And then the war came and with it, the looting and destruction of the country's largest medical teaching facility. Iraq's medical society wants more protection for doctors, but security forces are already stretched very, very thin. Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

COOPER: Well, today's buzz is this. What do you think? "Do you think the new government will be able to solve the security problems here?" Log on to CNN.com/360. Cast your vote. We'll have results at the end of the program tonight. The transfer of power and the race for the White House, but just ahead, how will the handover affect the presidential election. We'll debate the issue coming up next.

Also ahead, the new Najaf, the latest from a city nearly destroyed by violence.

And a little later, chaos in the emergency room. How doctors at one Baghdad hospital are doing a lot with almost nothing at all.

(COMMERCIAL BREAK)

COOPER: Well, four years ago, during the last presidential election, there wasn't much stateside talk about Baghdad or Basra or Baquba. They had nothing to do with domestic politics then. Now they have a lot to do with domestic politics. A new CNN/"USA TODAY"/Gallup poll conducted last week finds that 54 percent of Americans polled think today's transfer of power will make things better here in Iraq, while 39 think the opposite. As for what the transfer actually means, 32 percent of those asked thought it was a sign that American policy is succeeding, but 60 percent take it to mean American policy is failing. To talk about Iraq and the American presidential elections, we're joined in Boston and Washington respectively by Doug Hattaway a spokesman for Al Gore in 2000 and Republican strategist Rich Galen, just back in April from six months here in Iraq.

Appreciate you both being with us on tonight's program. Thanks very much for being with us.

Rich, let's start with you.

What do you think?

What does the handover today -- what does that spell for President Bush come fall?

RICH GALEN, REPUBLICAN STRATEGIST: Well, it never occurred to me that there was much of a chance that President Bush was likely to lose in any event, but I think as -- by the way, I want to say this because I mean this with all sincerity. The bureau, the CNN Bureau there in Baghdad, where I've been a number of times in the Palestine Hotel houses some of the bravest people I met while I was in Baghdad. I had the unfortunate duty to pay the condolence call on behalf of the CPA after two of your reporters were killed there earlier this year and all of your folks deserve high praise for what they're doing out there in Baghdad.

Now having said that, let me say that the handover really means this, in terms of coverage, for example, yesterday, or the day before, Dan Senor and Mark Kimmitt would have stood up and explained whatever was going on. Senor is gone. Kimmitt is leaving in a few days. So from this point forward it is up to the Iraqis to talk to reporters, to tell them what's going and happening and explain what they're doing to get control of some of these things that you were reporting earlier. So, I think this has a huge impact, this will have a huge impact here as the focus of the news changes from Americans, Americans, Americans, to Iraqis, Iraqis, Iraqis.

COOPER: Let's bring Mr. Hattaway in here.

What do you think?

I mean, what sort of an impact?

Albeit it may have a huge impact but a positive for President Bush or more for John Kerry.

DOUG HATTAWAY, FMR. GORE SPOKESMAN: I think that remains to be seen. I think Bush -- this is obviously good news, it shows progress on the political front. It will be interesting to see what Rich is saying about the coverage and whether that will change people's attitudes. I think Bush is being judged by voters on deeper things, whether Iraq and this whole exercise there has made us safer or not and whether Bush's whole approach to the world as evidenced by his approach to Iraq has made us safer.

I think a growing number of voters are answering no to both questions. That we're not going to see -- this is like some good news, but the American taxpayers continue to bear the burdens in Iraq, $100 billion of tax money already spent when we've got problems here at home that are going unaddressed and American troops are continuing to be killed in Iraq. Now, I think Bush is finally on the right track, trying to get international help. I think that's a day late and a dollar short. I think a lot of people who supported the war in the beginning do not support it anymore, it's because of the approach Bush took to it. And that isn't going to change between now and the election.

COOPER: Very briefly, Rich, lets talk about John Kerry's approach to the situation in Iraq. He's been sort of laying low.

Is that a strategy that's working for him?

GALEN: Well, it's hard to tell what's working and not working. I mean, if we're going to talk about this poll, we have to talk about the head-to-head part of the poll which shows the president one point ahead. But the important thing is that three weeks ago, in the earlier version of this poll, Senator Kerry was ahead 50-44. So, he's had a net loss of seven in the last three weeks. And the only reason I bring that up is because I suspect that the lowering of the volume about Iraq means that the economy will begin to rise as what people are thinking about, and that is very good news, I think, for the president.

COOPER: We're have to leave it there. Rich -- very briefly, Doug.

HATTAWAY: I would say if the economy becomes more an issue, it's actually worse for Bush, because he sounds a lot like his father in '92, he's talking about rosy economic statistics, the middle class is not feeling it.

GALEN: Well, everybody else is.

(CROSSTALK)

COOPER: We're going to have to leave there. Doug Hattaway. Doug Hattaway, Rich Galen, appreciate you being on the program tonight. Thank you.

HATTAWAY: Thanks.

GALEN: Be safe.

COOPER: For a special look at the handover and, it's effects abroad and at home, I'm joined from Camp Lejeune, North Caroline right now by Paula Zahn. Paula, I know you have a special coming up at 8:00.

What are you going to be covering?

PAULA ZAHN, HOST, "PAULA ZAHN NOW": Hi, Anderson. Thanks so much. We actually are at the Marine Corps Air Station of New River, which is part of this whole Camp Lejeune area and we're going to be talking about the families left behind. Already, you have some 8,000 Marines deployed in Iraq, and in just the next couple of weeks, we expect an additional 2,400 Marines to be sent to Iraq. So the families that you're going to meet tonight are keenly aware of the ongoing risks their loved ones face. We're going to hear from women who talk about the experience of giving birth while their husbands are in Iraq. We're going to talk to Marines that are just about ready to get on airplanes, perhaps as early as next week, talk about the reality of knowing that a fellow Marine originally from Camp Lejeune is being held hostage. We'll talk about the training and how this prepares all the families for what any collectively face. So we have a very important hour ahead, and we hope you will all join us. Thanks, Anderson.

(COMMERCIAL BREAK)

HEIDI COLLINS, CNN CORRESPONDENT: Good evening everybody. I'm Heidi Collins in New York. Stand by with us for just one moment, we are having some technical difficulties with our Baghdad connections and Anderson Cooper, but we will be checking back with him in just a few moments, so bare with us if you could.

In the meantime, it is one of Iraq's holiest cities, but Najaf has recently been known as a place of violence, not salvation. Not too long ago, Najaf, bore witness to brutal urban warfare between coalition and well armed insurgent. But for now in Najaf there is stability, even hope.

CNN's Baghdad bureau chief, Jane Arraf, traveled to Najaf to see firsthand the change taking place.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF (voice-over): After almost two months of combat by soldiers whose tour of duty was extended in order to fight the militia in Najaf, that militia is no longer deemed a major threat.

COL. BRAD MAY, U.S. ARMY: What the focus clearly is on is doing best to reestablish the Iraqi security forces. They are getting better and gaining confidence each and every day.

ARRAF: Lieutenant General David Petraeus, in charge of rebuilding Iraqi security forces, flew in to see what the city needs. Petraeus reassured the new police chief the coalition would support and equip the new force.

LIEUTENANT GENERAL DAVID PETRAEUS: ... flew two Chinook -- two large helicopter loads full of heavy machine guns and additional ammunition and weapons and body armor and other equipment. And that's what we've got to keep on doing.

ARRAF: Outside the main police station, it's clear that in a city still scarred by fighting, this was not easily going to be a force that would abandon the old techniques.

We've concealed their faces, because they told us they feared for their lives if they were recognized. They told us these Iraqi men were suspected of firing a rocket-propelled grenade at them. One of the men, sobbing in fear, pleads with an American soldier to protect him from the police. Inside, the police chief and Petraeus are unaware of the incident.

It's clearly a work in progress, rebuilding a police force in a city where most policemen either abandon their posts or join the militia when the uprising began. For now, at least, the fighting over, that work has begun. Jane Arraf, CNN, Najaf, Iraq.

(END VIDEOTAPE)

COLLINS: We are going to pass it back over to Anderson Cooper now, back with us live from Baghdad -- Anderson?

COOPER: Heidi, thanks very much. One of the joys of live television, you never know what's going to happen. Thanks very much for covering, Heidi.

Lieutenant General David Petraeus may just be the best exit strategy the U.S. has in Iraq. He's a 51-year-old West Point graduate, and he's overseeing the training of Iraqi security forces. It is up to them, and in part to him, to end the terror at the hands of insurgents.

Earlier, I spoke to General Petraeus, a man faced with an enormous task.

(BEGIN VIDEOTAPE)

COOPER: What is the mission now.

PETRAEUS: The mission now is to assist the Iraqis in the organizing, training, equipping, and operationally mentoring of all of their security forces. That's somewhere on the order of a quarter of a million police and armed forces with lots of subcategories of all of those, including regular police, border police, customs police, Marine (ph) police.

COOPER: As you see -- I mean, as you look at the Iraqi police, the Iraqi military, all these different units, what is the biggest problem? What's the essential thing that needs to be fixed? I mean, I'm sure there are multiple ones.

PETRAEUS: There's multiple problems and a lot of challenges out there. In some cases, we need a lot more training for certain elements. In some cases, we need the middle grade leadership. We clearly need more equipment, we need more facilities, infrastructure. The border forts need to be reconstructed now that there is an interim Iraqi government, which is really wonderful.

You feel a real difference, frankly, from when I was back here in April doing the assessment to being back here again now...

COOPER: How so? What's the difference now?

PETRAEUS: Well, psychologically, we all feel there is now Iraqi leadership.

COOPER: Are the methods that the Iraqis are going to use, are they -- they don't seem to be the same that the U.S. has been using. I mean, Prime Minister Allawi has talked about possibly martial law. Do you anticipate them making some sort of tactical change?

PETRAEUS: They may make changes. I'm not so sure it would go as far as something like that, but I think there will be changes and I think a lot of them will be good changes. I think they are determined to increase the visibility and the presence of police in the streets of Baghdad, for example.

COOPER: You've been in other places -- in Haiti where the U.S. has tried to retrain armies or retrain police. It's a tough thing to do. I mean, it doesn't -- it's not an easy thing. It requires a lot of time.

PETRAEUS: It does. It requires a degree of determination and, frankly, stick-to-itiveness. And I think that our nation has that right now right here.

COOPER: You don't worry that the American public will sort of move on after the handover and that America will not stick with it?

PETRAEUS: I think we've invested an enormous amount here. And again, I think we've got to see it through.

(END VIDEOTAPE)

COOPER: Earlier in the program, we told you the personal risks facing doctors here, the risk of being kidnapped. Now, we give you a glimpse of the work they're doing amid those fears. I went to Baghdad's second largest hospital. Here's a look at a day in the life of an ER in a very tough city.

(BEGIN VIDEOTAPE)

COOPER (voice-over): After a year of U.S. occupation, Doctor Jamal Taha never thought his emergency room would look like this.

DR. JAMAL TAHA, IRAQI SURGEON: This is a bullet injury. Yes (UNINTELLIGIBLE)...

COOPER: Gunshot wounds, traffic accidents, victims of explosions -- everyday at Yarmouk Hospital, one of Baghdad's largest, Dr. Taha sees it all.

TAHA: You see, this is the bullet.

COOPER: Their x-rays are primitive, supplies short, their medical equipment nearly 30 years old.

TAHA: That's the only microscope here.

COOPER: This is the only microscope?

TAHA: The only microscope here.

COOPER: The coalition authorities say they've delivered 30,000 tons of pharmaceuticals and medical supplies throughout Iraq, and spending on health care has increased by nearly $1 billion. But according to Dr. Taha, here little of that seems to be trickling down.

TAHA: Me, I respect the USA and I love the USA, because they are the most developed country in the world. But they do nothing for us.

COOPER: Dr. Taha may love the United States, but he doesn't like the U.S. occupation, though he hopes American troops remain here for a long time to come. He worries about what he is seeing in his fellow Iraqis.

TAHA: The behavior of Iraqis, they are behaving in a bad way. They are aggressive. They -- you don't talk with any one of them. They are ready to fight, they are ready to kill.

COOPER: Gun toting guards and police walk the dingy halls of the hospital. The police are more trouble than they're worth, says Dr. Taha. Two weeks ago, a policeman accidentally fired his gun in the emergency room.

TAHA: They were planning (ph) on dropping (ph) with each other and a bullet shot here and -- behind your place, hitting the wall and injured a patient sitting here waiting and almost killed a doctor right behind me here.

COOPER: Wow, that was a bullet...

TAHA: From the policeman, yes.

COOPER: You can find the problems of the new Iraq in the rundown rooms of this hospital, but you can also find the possibilities. 18- year-old Mustafa lies on a bed with no sheets, recovering from a suicide car bomb explosion. 36 Iraqis were killed in the blast, all men wanting to join the new Iraqi army.

Though a terrorist nearly killed him, he still plans to join the army. "It's an honor," he says. "A hope for the new Iraq."

(END VIDEOTAPE)

COOPER: A hope indeed. "360" special edition live from Baghdad continues in a moment.

(COMMERCIAL BREAK)

COOPER: Time now for "The Buzz." Earlier we asked you, does today's -- does the new Iraqi government will be able to solve the country's security problems? Twenty-three percent of you said yes; 77 percent of you said no. Not a scientific poll, but it is your buzz.

Taking an old saying to "The Nth Degree" tonight. We say it often enough. The pen is mightier than the sword. But seldom do we see that idea tested in real life as starkly as it was today. Look, here is what the pen did today -- produced the papers that gave Iraq back its sovereignty. But then, about the same time the pen was finishing that important work, a sword was wielded in opposition to it, above the head of a young man whose life, his captors say, will be forfeited if their demands are not met. Just as sad to say Matt Maupin's life seems already to have been forfeited. It is something we say all the time, with all the confidence in the world. They say the pen is mightier than the sword. Hope that's true in the long run. Just for today, though, it wasn't so clear.

I'm Anderson Cooper, live from Baghdad. Thanks for watching a special edition of 360. Stay tuned for another special edition of "PAULA ZAHN NOW," live from Camp Lejeune.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired June 28, 2004 - 19:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDERSON COOPER, HOST: Good evening from Baghdad. I'm Anderson Cooper.
Another American hostage reportedly killed as Iraq takes over sovereignty.

360 starts now.

A new day dawns in Iraq as the U.S. hands over sovereignty early behind the scenes of the highly anticipated handover. The new government calls on all Iraqis to fight terrorists. But can it really handle the security challenge?

After the handover of sovereignty, will the handover of Saddam come next?

A missing Marine, the sword of death hanging over his head. How did Corporal Wassef Hassoun fall into the wrong hands?

And does a change in leadership really change anything as far as U.S. troops are concerned? A look at the timetable for U.S. forces overseas.

ANNOUNCER: This is a special edition of ANDERSON COOPER 360: Iraq, the Next Chapter, with Anderson Cooper reporting live from Baghdad.

COOPER: Good evening from Baghdad.

The day's early good news, the handover of power to Iraqi authorities, was overshadowed within the hour by some very bad news indeed. Al Jazeera is reporting now that it has a videotape believed to show the killing of an American soldier who has been missing since his unit was ambushed on the ninth of April.

CNN's Pentagon correspondent Barbara Starr has details on the fate of Specialist Matt Maupin. Barbara?

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

Well, let's be very clear what the Pentagon is saying at this hour is they are aware of the tape. Some officials say they know what is on the tape, but what they do not know is whether that tape is Specialist Maupin or not. Senior officials telling CNN this evening here at the Pentagon that the tape is inconclusive, that it is murky, that it is of poor quality, and they at this hour simply cannot confirm that it is Specialist Maupin.

However, they say, it does show someone being shot.

Now, earlier today, there was enough concern about this that the Army sent the casualty assistance officer, if you will, the liaison working with the Maupin family, to contact the family, to tell them that this tape was circulating, that there was a lot of media attention, to forewarn the Maupin family that all of this may be coming.

But tonight here at the Pentagon, officials still say that the word is it is inconclusive to them. There is no body that has been found, and they simply do not know if indeed that tape that Al Jazeera has is that of Specialist Maupin, Anderson.

COOPER: Barbara, there really has not been much news about Specialist Maupin since that first videotape surfaced. So this would be really the first word we, at least, publicly have heard. Has the Pentagon heard any information? Have they been following up on reports over the last several months?

STARR: Well, that's exactly right, Anderson. It was on April 9 that Maupin's convoy was ambushed just outside of Baghdad, when the insurgency was truly at its height back in the springtime. There was, in fact, of course, an initial videotape on which he appeared, identified himself, and it was very clear to his family that it was Keith Matt, Keith Matthew Maupin.

Since then, there had been no word of him, absolutely nothing. Here at the Pentagon, reporters asked regularly, in Baghdad, reporters asked regularly. No word. So if this does prove to be him, it would be the only word of his fate since he was initially captured.

COOPER: All right. And a sad and sickening word it would be. Barbara Starr, thanks for the Pentagon following this late-breaking story for us. We'll continue to bring you any updates as warranted throughout this hour.

If you've seen any of today's news coverage out of Iraq, you have no doubt heard the same word over and over. I think I used it myself several times today, "historic." Today's handover, yes, was historic, but it was also surprising, the timing two days earlier than anticipated.

When the subdued ceremony was over, the head of the now-defunct Coalition Provisional Authority, Ambassador Paul Bremer, the man who has ruled Iraq, left, another historic moment.

And this actual footnote to history, a piece of paper passed from Condoleezza Rice to President Bush from the moment of handover. "Iraq is sovereign," the note read. The president's response, written in the margin, "Let freedom reign!" (BEGIN VIDEOTAPE)

COOPER (voice-over): No one thought it would happen like this. In part because of concerns an elaborate ceremony might prove a tempting target, the handover came unexpectedly early, with little fanfare, little notice, just a short ceremony, and the deal was done.

Ambassador Paul Bremer, the man who ran the country for the last year, presided over the event.

AMB. L. PAUL BREMER, FORMER U.S. CIVILIAN ADMINISTRATOR: The Iraqi interim government will assume and exercise full sovereign authority on behalf of the Iraqi people. We welcome Iraq's steps to take its rightful place of equality and honor among the free nations of the world.

AYAD ALLAWI, IRAQI PRIME MINISTER: This is a big day for us. And Iraq is for the first time now (UNINTELLIGIBLE) own problems.

COOPER: And the head of the new government quickly laid out his priority.

ALLAWI: The first thing is really to ensure the safety of our people, and to ensure the safety of the country.

COOPER: At a ceremony later in the day, the members of the government were officially sworn in, and Prime Minister Allawi addressed the nation, asking all Iraqis, including supporters of the former regime, to join in fighting terrorism.

ALLAWI (through translator): I call on the heroes of the past, all the regions of Iraq, and the sons of Iraq, and I call on their efforts to eradicate foreign terrorists who are killing our people and destroying our country.

COOPER: As the Iraqi flag, the same one used under Saddam Hussein, flew over the capital and ceremonies across the country marked the handover, Paul Bremer said good-bye to the nation in a pretaped message.

(BEGIN VIDEO CLIP)

BREMER: I leave Iraq gladdened by what has been accomplished and confident that your future is full of hope. A piece of my heart will always remain here in the beautiful land between the two rivers, with its fertile valleys, its majestic mountains, and its wonderful people.

(END VIDEO CLIP)

COOPER: Immediately after the handover ceremony, Bremer, who appeared to have a tear in his eye, hopped on a plane and left the country, leaving behind a sovereign nation, within limits, and secured by more than 100,000 foreign troops, a new country, albeit one with tremendous problems to face.

(END VIDEOTAPE) COOPER: Tremendous problems indeed. Here's just an indication of how complicated the world is right now. To talk with dozens of European leaders and NATO leaders, President Bush flew from Dublin, Ireland, to Istanbul, Turkey, which is where he learned about today's developments in Baghdad.

CNN's senior White House correspondent John King has more now on how exactly things happened and when.

(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): It was a tightly held secret as the president arrived for Monday's NATO summit session. Then his note from his national security adviser. "Iraq is sovereign." Mr. Bush scribbled his reaction in the margin, "Let freedom reign."

Then, a glance at his watch to mark the moment, and a celebratory handshake with the leader at his side from the beginning of the Iraq debate. This time, no banners declaring "Mission Accomplished." But while Mr. Bush was more subdued, he was optimistic and by no means apologetic.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We pledged to end a dangerous regime, to free the oppressed, and to restore sovereignty. We have kept our word.

KING: The president called the early transfer of power a tribute to Iraq's new government and a message to those behind the violent insurgency.

BUSH: Their bombs and attacks have not prevented Iraqi sovereignty, and they will not prevent Iraqi democracy.

KING: From a legal standpoint, occupation over after 14 months, but 138,000 U.S. and 12,000 British troops remain, and Prime Minister Blair warned of difficult and dangerous days ahead.

TONY BLAIR, BRITISH PRIME MINISTER: We'll stay for as long as it takes to make sure that that support is there for them, so that we help them to that freedom and democracy they want to see.

KING: The NATO alliance quickly pledged help training Iraqi security forces. Not too long ago, Mr. Bush had hoped for NATO troops, not just training, but he compromised in the face of familiar opposition

JACQUES CHIRAC, PRESIDENT OF FRANCE (through translator): It is not the vocation of NATO to intervene in Iraq.

KING: Administration officials say the idea of transferring sovereignty ahead of schedule gained steam about a week ago, that Iraq's new prime minister gave the final OK Sunday night, saying the sooner he took power, the sooner he could launch new efforts to improve security.

BUSH: And our job is to help the Iraqis stand up forces that are able to deal with these thugs.

KING (on camera): With the political handover now complete, U.S. officials say the new government likely will take legal custody of Saddam Hussein within days, but U.S. troops will continue to help guard him. As one senior U.S. official put it, "We want to make sure he is put on trial, not snuck out a back door or strung up a flagpole."

John King, CNN, Istanbul.

(END VIDEOTAPE)

COOPER: Well, coming up later on 360, "TIME" magazine's Michael Ware gives us a dangerously close-up look as how Iraq's insurgents see themselves as part of a global jihad against America. We should tell you this right now, his assessment and his fears will chill you to the bone.

(BEGIN VIDEO CLIP)

MICHAEL WARE, "TIME" MAGAZINE: The very thing that the coalition that we say we came here to prevent, terrorists, terrorist operations, training camps, we have fermented. We have spawned it. Without us, it couldn't have happened.

(END VIDEO CLIP)

COOPER: We're going to have more from Michael Ware of "TIME" magazine later on 360.

A young American Marine of Lebanese descent went missing from his unit nearly a week ago, and now the family of Wassef Ali Hassoun says that it is him behind a blindfold with a sword dangling above his head in the latest videotaped threat from terrorists in Iraq.

CNN's Ed Lavandera has more now on the mysterious disappearance of and the sickening reappearance of a Marine from Utah.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Marine Corporal Wassef Ali Hassoun was last seen on June 19. His family says the U.S. military told them he was missing but couldn't offer more details. Then Hassoun turned up on Arab television, blindfolded, with a sword held over his head, the voice on the tape saying Hassoun would be killed if the U.S. fails to release all Iraqi prisoners.

Hassoun's father lives in Lebanon, and today asked the Islamic militants to spare his son's life.

(BEGIN VIDEO CLIP)

MOHAMMED HASSOUN, FATHER OF MISSING U.S. MARINE (through translator): I plead the authority of Islamic scholars and everyone who has mercy in his heart and fears God. I ask them for the sake of God, Prophet Muhammed, and their children to release my son, and I thank them, and they will have great reward from God.

(END VIDEO CLIP)

LAVANDERA: But while the video images from Iraq seem to suggest Hassoun has been kidnapped, the U.S. military says it cannot confirm that story yet. The voice on the videotape says Hassoun was lured away from a U.S. military base near Fallujah.

Hassoun is a 24-year-old Arabic translator with the 1st Marine Expeditionary Force out of Camp Pendleton, California. Hassoun has two brothers that live in the Salt Lake City suburb of West Jordan. The family is trying to make sense what has happened to the 24-year- old Marine and have been embraced with prayers and support from the Muslim community here in Utah.

SHUAIB-UD DIN, IMAM, ISLAMIC SOCIETY OF SALT LAKE CITY: The whole war in general has been difficult to explain and very upsetting. This is just one more ugly chapter of this war in Iraq. And we just hope for an end to this war soon, you know, very quick end to this upsetting situation and safe return for everyone.

LAVANDERA (on camera): Here in West Jordan, Utah, there are plans for a couple of vigils tonight, one at a local mosque, where they'll be reading from the Quran and praying with the family of Corporal Hassoun, and we also understand that a family spokesperson will be coming out in a short while, in about an hour and a half, to make another statement.

And we do understand that much of what the family has been doing over the last day and a half or so is trying to piece together all the varying reports as to what exactly has happened in this case. And that is what they're sifting through and awaiting the latest word, not only from the U.S. military but also from watching Arab television, Anderson.

COOPER: Well, certainly the thoughts and prayers of a lot of people around the world are with him and his family at this point tonight. CNN's Ed Lavandera, thanks very much.

This leads us to our buzz question. What do you think? Do you think the new Iraqi government will be able to solve this country's security problems? Log on to CNN.com/360, cast your vote. We'll have results at the end of the program tonight.

360 next, Saddam Hussein about to make the mother of all perp walks. The former dictator soon to be placed in Iraqi hands in front of TV cameras. Find out whether he'll face death for the murder of thousands.

Plus, sovereignty and insecurity, the battle to keep the peace and the American general who could make all the difference. I'll talk with him.

Also, the politics of a handover. Will it help President Bush come November? We have the latest polls.

First, let's take a look at your picks, the most popular stories on CNN.com right now.

(COMMERCIAL BREAK)

COOPER: Perhaps the most enduring image of the war in Iraq, the toppling of the Saddam Hussein statue in Baghdad's Firdos Square. That was more than a year ago. Now, with the transfer of power complete, Iraqis here in and across the country are awaiting the turnover of the former dictator.

Today we have a pretty good idea of when that will happen, the new Iraqi government promising to give Hussein something he never gave his countrymen, a fair trial.

CNN's Adaora Udoji reports.

(BEGIN VIDEOTAPE)

ADAORA UDOJI, CNN CORRESPONDENT (voice-over): Saddam Hussein, the ousted dictator, will likely be in Iraqi legal custody within a week.

ALLAWI: The legal advisers, all the documents are being done with the coalition and with the multinational force.

UDOJI: When it happens, Saddam, accused of multiple atrocities, including murdering tens of thousands of people, will face those with the most scores to settle. Iraqi authorities describe a formal transfer. Two U.S. soldiers will handcuff the former leader, turn him over to four Iraqi soldiers, who will take him into an Iraqi court. Saddam will hear his rights and be read an arrest warrant, potentially by a judge he appointed.

Still, U.S. forces will remain responsible for keeping Saddam locked up, they are careful to point out, at the request of Iraqi authorities.

BRIG. GEN. MARK KIMMITT, U.S. ARMY: We will maintain the physical custody, because there is no facility. So the prime minister has asked us to retain physical custody.

UDOJI: If Saddam ever escaped, it could be catastrophic, spreading fear, disrupting efforts by the new government. His trial, say many, critical to Iraqi's progress.

WALTER RUSSELL READ, COUNCIL ON FOREIGN RELATIONS: Even by the horrible standards of world history, Saddam Hussein has kind of earned a prominent place in the mass killers and psychotics. So dealing with this, it will remind Iraqis how important it is for them to change their country.

UDOJI: A trial will send the message, Saddam's ruling days are over. He'll face justice, and the country can move on.

Adaora Udoji, CNN, New York.

(END VIDEOTAPE) COOPER: Here's a quick news note for you on last-minute immunity for U.S. troops and contractors. Just hours before the transfer of power today, outgoing U.S. civilian administrator Paul Bremer signed a revised Order 17. The decree gives foreign military forces such as U.S. troops and contractors in Iraq immunity from prosecution. Unless the interim government reverses the order, it will be in place until the election of a new Iraqi government late this year or early 2005.

360 next, celebration and hesitation tonight in the Arab world. How the handover of power is playing amongst the people.

Also tonight, how the insurgency in Iraq may be taking an ominous turn, evolving, morphing into a global jihadist war, a war "TIME" magazine's Michael Ware says we are likely to fight for the rest of our lives. You will not want to miss my discussion with him. Chilling.

And a little later, hostage taking in the new Iraq, not just Americans. We'll look at why Iraqi doctors are now prime targets. We return in a moment.

(COMMERCIAL BREAK)

COOPER: Just some of the scenes of celebration today, from the new prime minister to the streets of Baghdad, celebrations that were echoed by President Bush, who calls this a day of great hope for Iraq. But interestingly, the headline on the Web site of Arabic satellite news network Al Jazeera isn't quite as optimistic. It says Iraqis are skeptical of the transfer of power. Like the U.S., the media here in the Arab world have different ways of telling the exact same story.

CNN's senior editor for Arab affairs, Octavia Nasr, shows us how the story is being reported throughout the Arab world.

(BEGIN VIDEOTAPE)

OCTAVIA NASR, CNN SENIOR EDITOR FOR ARAB AFFAIRS (voice-over): Sovereignty came back to Iraq, says Al Arabiya, as its correspondent roams the streets of Baghdad in search of reaction. He notes Baghdad residents are pleasantly surprised with the early handover, and that now a sense of relief reigns over the region.

"We are very happy," says this woman. "But at the same time, we are anxious to see real security, peace, and stability." Another man also pleased, but added, "I wish for the Americans to leave and make it a complete handover."

The newly formed Iraqi police, taking the lead, securing the streets of their capital city. This one doesn't mind taking charge two days earlier. "We have an emergency plan," he says. "Our efforts are doubled, and the police staff is doubled as well."

Al Jazeera went beyond Iraq's borders to check the pulse of major Arab capitals, such as Cairo, Rabat, and Beirut, followed by a special program looking at Iraq at a crossroads. The tone remains optimistic, with a bit of skepticism from the Baghdad correspondent. "A strange timing for a strange sovereignty," she says. And security still weighing heavily on Iraqis' minds. Otherwise, ordinary Iraqis not able to contain their emotions. As this woman, who says she feels for the first time in many years that they are Iraqis, belonging to a sovereign Iraq, hoping, she says, security will take hold, and then everything will fall into place.

In the surprise of an early handover, even the Arab networks captured candid reactions, positive feelings, at least in the first hours of a new nation, as Iraq begins its test of sovereignty and patriotism.

Octavia Nasr, CNN, Atlanta.

(END VIDEOTAPE)

COOPER: Some of the many different ways this story has been covered in the Arab world.

For more on how the Arab and Muslim world is reacting to the handover, I'm joined from Washington by Samar Shehata, a professor at Georgetown University Center for Contemporary Arab Studies.

Samar, thanks for being with us again.

Your reaction to today's events. What is the key move that the Iraqi government must make now in order to show people that they are really sovereign and really can do the job of governing this country?

SAMAR SHEHATA, GEORGETOWN UNIVERSITY: Sure. Well, today's events were certainly positive. But the key thing remains security, providing security for ordinary Iraqis. That is the number-one item on the agenda.

But the other thing that the Iraqi government can do to display the fact that they actually are sovereign is to have a -- have input into the military operations that the coalition forces do or do not undertake in the coming weeks. Fallujah, you'll remember, was a disaster in terms of Iraqi public opinion. There was widespread condemnation of it. And if something like that were to happen again, I think Iraqis would stand up and say, What kind of sovereignty is this?

So if the interim government is involved, coordinating with the Coalition Provisional Authority, what -- I'm sorry, with the coalition forces in terms of what kind of military action is taken, that will certainly have a positive impact on how they're viewed by ordinary Iraqis.

COOPER: Already we have seen some moves for sort of Iraqi solutions to these problems, Iraq's Prime Minister Allawi suggesting, perhaps, an amnesty for those who don't have blood on their hands but for those who have opposed the coalition thus far. Do you anticipate seeing more of those sort of uniquely Iraqi solutions?

SHEHATA: Well, that's -- I do, actually. And he's suggested more than just the amnesty. He also has talked about the possibility of martial law being imposed in parts of Iraq, curfews and so on, in the coming days. And he has also talked about the possibility of reconstituting the Iraqi army, which was disbanded by the United States after the war.

I think those are potentially positive steps, and those certainly are demonstrations of sovereignty that Ayad Allawi and the government can do in the coming days.

COOPER: Because so many people are talking about security and want to see some sort of strong move from this government, and yet, you know, I mean, as you well know, the police are incredibly poorly equipped. They're poorly funded at this point, and they really lack morale.

SHEHATA: Well, it's a very serious question. And that is, what can the Iraqi security forces that are ill equipped, relatively new, understaffed, and poorly trained do that the American forces, numbering over 140,000, couldn't do? And that's why many people are skeptical.

But nevertheless, moves like the proposed amnesty are intended to isolate the most radical elements of the insurgency and allow everyone else in the country to rally behind this new interim government. We'll have to see whether it works or not.

COOPER: And we're going to talk about those radical elements in the insurgency in just a moment.

Samar Shehata from Georgetown University's Contemporary Arab Studies Department, thank you very much for being with us.

We'll be right back.

SHEHATA: You're welcome, Anderson.

(COMMERCIAL BREAK)

COOPER: I'm Anderson Cooper, live in Baghdad.

Has the United States opened a Pandora's box of terrorism in Iraq? In a moment, Michael Ware of "TIME" magazine takes you up close with terrorists in Iraq who see themselves as fighting a global, never-ending jihad. We'll be right back.

(COMMERCIAL BREAK)

COOPER: Welcome back to a special edition of 360, live from Baghdad. I'm Anderson Cooper.

Reports are just coming in now that an American hostage has been killed here in Iraq. Army Specialist Matt Maupin was captured April 9 and seen in this videotape shortly afterwards. Today, in a communique, a terrorist group said it had killed him because the U.S. refused to change its policy in Iraq. Now, the communique, which was received by the Al Jazeera television network, was accompanied by a videotape which supposedly shows the killing. The Pentagon says it is aware of the videotape but called it inconclusive, and could not confirm Maupin's death.

At the same time, another American serviceman, Marine Wassef Ali Hassoun, has been kidnapped as well by terrorists. Hassoun was seen on a videotape. The broadcast, it was broadcast on Sunday on Al Jazeera. On the tape, a speaker threatened to kill him unless U.S. military authorities released Iraqi prisoners.

Meanwhile, the transition of power that everyone thought was going to take place on Wednesday took place today instead, quickly, quietly, efficiently, and without a hint to anyone beforehand. Iraq is now the lookout of the Iraqi government. As for L. Paul Bremer, the long-time steward of the coalition authority here, well, he paused barely at all before heading home.

What were L. Paul Bremer's headaches have now been inherited by a 59-year-old surgeon who spent many years in exile and was once nearly assassinated in London by henchmen of Saddam Hussein.

CNN's senior international correspondent Christiane Amanpour reports now on the man who stepped up to the podium today to begin charting the course for Iraq.

(BEGIN VIDEOTAPE)

CHRISTIANE AMANPOUR, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Before a bank of Iraqi flags, Prime Minister Ayad Allawi set out his agenda, with a wide range of promises on such challenges as services, the economy, democracy, and especially security.

ALLAWI (through translator): I warn the forces of terror once again, we will not forget who stood by and against us in this crisis. Here, I arouse the efforts of people to defend the sacred places in the country.

AMANPOUR: He offered a pardon for any Iraqi insurgents and former Saddam loyalists who did not have blood on their hands, that in return for information and cooperation in fingering the terrorists.

While he has repeatedly said he would impose emergency security measures, that's expected to fall short of full martial law. Allawi has yet to detail his security plan. It could include curfews and a ban on public gatherings.

As for the people, in Baghdad they welcomed their new sovereignty, and most yearned for a new strong man.

"I want to tell the government, May God make your work a success," says pensioner Hamid Abas (ph). "Take care of us, and be strong."

"Every Iraqi is happy with this day," says Amar Agrossa. "We want to rest. It's 13 or 14 months and we've got nothing. Wherever we go, there are explosions."

A brand new Iraqi flag now flies over this Green Zone, and this is once again sovereign Iraqi territory. But this country is also swept up in the terror of the insurgency. And so the mood can best be summed up as hoping for the best and preparing for the worst. Christiane Amanpour, CNN, Baghdad.

(END VIDEOTAPE)

COOPER: Speaking of hope, many think or hope anyway that today's transition may mark the beginning of the end of the worst in Iraq and therefore, also the end of the worst for a world plagued by terrorism. That, however, is not what Michael Ware of "TIME" magazine thinks. What he thinks, based on interviews with insurgents here, is enough to make your blood run cold. It did mine. We spoke earlier today.

(BEGIN VIDEOTAPE)

COOPER: The insurgent movement is changing, it's morphing. How so?

MICHAEL WARE, "TIME" MAGAZINE: There's been an evolution in the insurgency. What six to nine months ago was generally guerrilla war being waged by former military officers, these were men who considered their military duty was continuing, now fighting to remove an occupier. These very same men however, six months later, have fundamentally changed. All the baggage of a freedom fighter has been tossed aside. And what's replaced it is Jihad.

COOPER: And part of this is a move of necessity that once Saddam was arrested, a lot of the money dried up, and therefore, they had to go elsewhere and sort of appeal to more hard-line foreign elements to get funding.

WARE: Earlier this year, from January to February, finances started to tighten up on the Iraqi resistance. The former regime figures those fighting for a free Iraq. At roughly the same time, the foreign Jihadis, the money channels that once funded the Jihad against the Soviets in the 1980s in Afghanistan, that same money, those same channels started filtering in here. With this money comes conditions. We give you the money to continue the holy war. But here is our Imam who will instruct you, here are some of our fighters who join you and guide you. Here is our ideological, theological belief that will bind you.

COOPER: And that spells bad news for the new government because Prime Minister Allawi has been trying to basically, in a sense, drive a wedge between these foreign fighters, making a distinction between these foreign fighters and Iraqis. You're saying it's a hard distinction to make in these times.

WARE: It's an impossible distinction to make now because they're operating as one cohesive group. The war in Iraq, when it first started after the fall of the regime, was a resistance. It was an insurgency. But now, in the last six months, it's become the centerpiece of the global Jihad that Osama bin Laden always intended to inspire with September 11.

COOPER: So what is their vision for Iraq? I mean do they want it to be what, Afghanistan?

WARE: I've been with Iraqis and foreigners in safehouses in and around Fallujah. These Iraqis now are growing the long beards of this extremist sect. I'm sitting in their houses. I have to pinch myself to remind me that I'm not back in Afghanistan where I've spent much time. On the walls, there's no pictures. Television is (UNINTELLIGIBLE). Air conditioning, any modern kind of pleasure or facility, music is banned.

COOPER: It's against their hard-line version of Islam?

WARE: Absolutely. You can't trim your beard now. Men I knew who two years ago under the regime were drinking and whoring and were just trouble makers, 12 months ago, may have curbed that and become nationalist guerrillas. Now these men don't even smoke cigarettes because a true jihadi doesn't do this, this brand of Islam will not tolerate that. That's the fundamental shift in these men. It is now an international fight. The very thing that the coalition -- that we say we came here to prevent, terrorists, terrorist operations, training camps, we have fermented. We have spawned it. Without us, it couldn't have happened. The jihadis, after September 11, had been looking for a platform.

COOPER: Now that the handover has happened, does the battle change? I mean, does their desire to create mayhem here, does that lessen. .

WARE: Absolutely not. However, these men who once just wanted a free Iraq with Iraqi solutions for Iraqi problems. Now they want an Islamic state. They want faithful obedience to the law of Allah. They want Sharia law. They want to be part of a broader Islamic caliphate movement across the entire Islamic world. This is the bin Laden, Al Qaeda inspirational message. And they want to maintain, they don't want to win to lose this war. What they're telling me is they just want to maintain perpetual Jihad. That's the end goal.

They welcome the American presence now, some of them, because, otherwise they say, and I'll quote, "we will have to follow them when we leave." What we've done is we've internationalized this fight and given a haven to other international fighters. The next September 11 if, God forbid there is one, could have among the 19 terrorists an Iraqi and the operation may even have been planned or formulated here. That's what we're coming to.

(END VIDEOTAPE)

COOPER: You're going to hear more of my gripping interview with "TIME" correspondent Michael Ware tomorrow night on 360. He'll talk about the threat from Abu Musab Al Zarqawi and his global Jihad movement. You won't want to miss that. It's not just contractors and U.S. troops being taken hostage here in Iraq. This is also a very dangerous time to be a doctor, an Iraqi doctor. To show you what we mean, Here's CNN's Harris Whitbeck. (BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): Dr. Abdul Kzar examines a patient in his Baghdad clinic, a routine checkup for his patient is anything but routine for the doctor. Two weeks ago, he was kidnapped leaving his clinic, held for four days, and released only after a ransom was paid.

DR. ABDUL KZAR, RELEASED BY KIDNAPPERS: They took me in a few seconds to their car, you see, and put me in the car in the back seat and closed my eyes.

WHITBECK: Practicing medicine, for him, is now calculating and taking personal risks.

KZAR: You are not safe. You are not secure. Probably somebody come to take -- to kidnap you again.

WHITBECK: Dr. Kzar is not alone. In recent weeks, as many as 100 physicians have been kidnapped in Baghdad. Health officials say others fled Iraq after threats. Kidnapping doctors is the latest blow to a medical system already near collapse. Iraqi medicine withstood years of an embargo that made access to equipment supplies and continuing education virtually impossible. And then the war came and with it, the looting and destruction of the country's largest medical teaching facility. Iraq's medical society wants more protection for doctors, but security forces are already stretched very, very thin. Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

COOPER: Well, today's buzz is this. What do you think? "Do you think the new government will be able to solve the security problems here?" Log on to CNN.com/360. Cast your vote. We'll have results at the end of the program tonight. The transfer of power and the race for the White House, but just ahead, how will the handover affect the presidential election. We'll debate the issue coming up next.

Also ahead, the new Najaf, the latest from a city nearly destroyed by violence.

And a little later, chaos in the emergency room. How doctors at one Baghdad hospital are doing a lot with almost nothing at all.

(COMMERCIAL BREAK)

COOPER: Well, four years ago, during the last presidential election, there wasn't much stateside talk about Baghdad or Basra or Baquba. They had nothing to do with domestic politics then. Now they have a lot to do with domestic politics. A new CNN/"USA TODAY"/Gallup poll conducted last week finds that 54 percent of Americans polled think today's transfer of power will make things better here in Iraq, while 39 think the opposite. As for what the transfer actually means, 32 percent of those asked thought it was a sign that American policy is succeeding, but 60 percent take it to mean American policy is failing. To talk about Iraq and the American presidential elections, we're joined in Boston and Washington respectively by Doug Hattaway a spokesman for Al Gore in 2000 and Republican strategist Rich Galen, just back in April from six months here in Iraq.

Appreciate you both being with us on tonight's program. Thanks very much for being with us.

Rich, let's start with you.

What do you think?

What does the handover today -- what does that spell for President Bush come fall?

RICH GALEN, REPUBLICAN STRATEGIST: Well, it never occurred to me that there was much of a chance that President Bush was likely to lose in any event, but I think as -- by the way, I want to say this because I mean this with all sincerity. The bureau, the CNN Bureau there in Baghdad, where I've been a number of times in the Palestine Hotel houses some of the bravest people I met while I was in Baghdad. I had the unfortunate duty to pay the condolence call on behalf of the CPA after two of your reporters were killed there earlier this year and all of your folks deserve high praise for what they're doing out there in Baghdad.

Now having said that, let me say that the handover really means this, in terms of coverage, for example, yesterday, or the day before, Dan Senor and Mark Kimmitt would have stood up and explained whatever was going on. Senor is gone. Kimmitt is leaving in a few days. So from this point forward it is up to the Iraqis to talk to reporters, to tell them what's going and happening and explain what they're doing to get control of some of these things that you were reporting earlier. So, I think this has a huge impact, this will have a huge impact here as the focus of the news changes from Americans, Americans, Americans, to Iraqis, Iraqis, Iraqis.

COOPER: Let's bring Mr. Hattaway in here.

What do you think?

I mean, what sort of an impact?

Albeit it may have a huge impact but a positive for President Bush or more for John Kerry.

DOUG HATTAWAY, FMR. GORE SPOKESMAN: I think that remains to be seen. I think Bush -- this is obviously good news, it shows progress on the political front. It will be interesting to see what Rich is saying about the coverage and whether that will change people's attitudes. I think Bush is being judged by voters on deeper things, whether Iraq and this whole exercise there has made us safer or not and whether Bush's whole approach to the world as evidenced by his approach to Iraq has made us safer.

I think a growing number of voters are answering no to both questions. That we're not going to see -- this is like some good news, but the American taxpayers continue to bear the burdens in Iraq, $100 billion of tax money already spent when we've got problems here at home that are going unaddressed and American troops are continuing to be killed in Iraq. Now, I think Bush is finally on the right track, trying to get international help. I think that's a day late and a dollar short. I think a lot of people who supported the war in the beginning do not support it anymore, it's because of the approach Bush took to it. And that isn't going to change between now and the election.

COOPER: Very briefly, Rich, lets talk about John Kerry's approach to the situation in Iraq. He's been sort of laying low.

Is that a strategy that's working for him?

GALEN: Well, it's hard to tell what's working and not working. I mean, if we're going to talk about this poll, we have to talk about the head-to-head part of the poll which shows the president one point ahead. But the important thing is that three weeks ago, in the earlier version of this poll, Senator Kerry was ahead 50-44. So, he's had a net loss of seven in the last three weeks. And the only reason I bring that up is because I suspect that the lowering of the volume about Iraq means that the economy will begin to rise as what people are thinking about, and that is very good news, I think, for the president.

COOPER: We're have to leave it there. Rich -- very briefly, Doug.

HATTAWAY: I would say if the economy becomes more an issue, it's actually worse for Bush, because he sounds a lot like his father in '92, he's talking about rosy economic statistics, the middle class is not feeling it.

GALEN: Well, everybody else is.

(CROSSTALK)

COOPER: We're going to have to leave there. Doug Hattaway. Doug Hattaway, Rich Galen, appreciate you being on the program tonight. Thank you.

HATTAWAY: Thanks.

GALEN: Be safe.

COOPER: For a special look at the handover and, it's effects abroad and at home, I'm joined from Camp Lejeune, North Caroline right now by Paula Zahn. Paula, I know you have a special coming up at 8:00.

What are you going to be covering?

PAULA ZAHN, HOST, "PAULA ZAHN NOW": Hi, Anderson. Thanks so much. We actually are at the Marine Corps Air Station of New River, which is part of this whole Camp Lejeune area and we're going to be talking about the families left behind. Already, you have some 8,000 Marines deployed in Iraq, and in just the next couple of weeks, we expect an additional 2,400 Marines to be sent to Iraq. So the families that you're going to meet tonight are keenly aware of the ongoing risks their loved ones face. We're going to hear from women who talk about the experience of giving birth while their husbands are in Iraq. We're going to talk to Marines that are just about ready to get on airplanes, perhaps as early as next week, talk about the reality of knowing that a fellow Marine originally from Camp Lejeune is being held hostage. We'll talk about the training and how this prepares all the families for what any collectively face. So we have a very important hour ahead, and we hope you will all join us. Thanks, Anderson.

(COMMERCIAL BREAK)

HEIDI COLLINS, CNN CORRESPONDENT: Good evening everybody. I'm Heidi Collins in New York. Stand by with us for just one moment, we are having some technical difficulties with our Baghdad connections and Anderson Cooper, but we will be checking back with him in just a few moments, so bare with us if you could.

In the meantime, it is one of Iraq's holiest cities, but Najaf has recently been known as a place of violence, not salvation. Not too long ago, Najaf, bore witness to brutal urban warfare between coalition and well armed insurgent. But for now in Najaf there is stability, even hope.

CNN's Baghdad bureau chief, Jane Arraf, traveled to Najaf to see firsthand the change taking place.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF (voice-over): After almost two months of combat by soldiers whose tour of duty was extended in order to fight the militia in Najaf, that militia is no longer deemed a major threat.

COL. BRAD MAY, U.S. ARMY: What the focus clearly is on is doing best to reestablish the Iraqi security forces. They are getting better and gaining confidence each and every day.

ARRAF: Lieutenant General David Petraeus, in charge of rebuilding Iraqi security forces, flew in to see what the city needs. Petraeus reassured the new police chief the coalition would support and equip the new force.

LIEUTENANT GENERAL DAVID PETRAEUS: ... flew two Chinook -- two large helicopter loads full of heavy machine guns and additional ammunition and weapons and body armor and other equipment. And that's what we've got to keep on doing.

ARRAF: Outside the main police station, it's clear that in a city still scarred by fighting, this was not easily going to be a force that would abandon the old techniques.

We've concealed their faces, because they told us they feared for their lives if they were recognized. They told us these Iraqi men were suspected of firing a rocket-propelled grenade at them. One of the men, sobbing in fear, pleads with an American soldier to protect him from the police. Inside, the police chief and Petraeus are unaware of the incident.

It's clearly a work in progress, rebuilding a police force in a city where most policemen either abandon their posts or join the militia when the uprising began. For now, at least, the fighting over, that work has begun. Jane Arraf, CNN, Najaf, Iraq.

(END VIDEOTAPE)

COLLINS: We are going to pass it back over to Anderson Cooper now, back with us live from Baghdad -- Anderson?

COOPER: Heidi, thanks very much. One of the joys of live television, you never know what's going to happen. Thanks very much for covering, Heidi.

Lieutenant General David Petraeus may just be the best exit strategy the U.S. has in Iraq. He's a 51-year-old West Point graduate, and he's overseeing the training of Iraqi security forces. It is up to them, and in part to him, to end the terror at the hands of insurgents.

Earlier, I spoke to General Petraeus, a man faced with an enormous task.

(BEGIN VIDEOTAPE)

COOPER: What is the mission now.

PETRAEUS: The mission now is to assist the Iraqis in the organizing, training, equipping, and operationally mentoring of all of their security forces. That's somewhere on the order of a quarter of a million police and armed forces with lots of subcategories of all of those, including regular police, border police, customs police, Marine (ph) police.

COOPER: As you see -- I mean, as you look at the Iraqi police, the Iraqi military, all these different units, what is the biggest problem? What's the essential thing that needs to be fixed? I mean, I'm sure there are multiple ones.

PETRAEUS: There's multiple problems and a lot of challenges out there. In some cases, we need a lot more training for certain elements. In some cases, we need the middle grade leadership. We clearly need more equipment, we need more facilities, infrastructure. The border forts need to be reconstructed now that there is an interim Iraqi government, which is really wonderful.

You feel a real difference, frankly, from when I was back here in April doing the assessment to being back here again now...

COOPER: How so? What's the difference now?

PETRAEUS: Well, psychologically, we all feel there is now Iraqi leadership.

COOPER: Are the methods that the Iraqis are going to use, are they -- they don't seem to be the same that the U.S. has been using. I mean, Prime Minister Allawi has talked about possibly martial law. Do you anticipate them making some sort of tactical change?

PETRAEUS: They may make changes. I'm not so sure it would go as far as something like that, but I think there will be changes and I think a lot of them will be good changes. I think they are determined to increase the visibility and the presence of police in the streets of Baghdad, for example.

COOPER: You've been in other places -- in Haiti where the U.S. has tried to retrain armies or retrain police. It's a tough thing to do. I mean, it doesn't -- it's not an easy thing. It requires a lot of time.

PETRAEUS: It does. It requires a degree of determination and, frankly, stick-to-itiveness. And I think that our nation has that right now right here.

COOPER: You don't worry that the American public will sort of move on after the handover and that America will not stick with it?

PETRAEUS: I think we've invested an enormous amount here. And again, I think we've got to see it through.

(END VIDEOTAPE)

COOPER: Earlier in the program, we told you the personal risks facing doctors here, the risk of being kidnapped. Now, we give you a glimpse of the work they're doing amid those fears. I went to Baghdad's second largest hospital. Here's a look at a day in the life of an ER in a very tough city.

(BEGIN VIDEOTAPE)

COOPER (voice-over): After a year of U.S. occupation, Doctor Jamal Taha never thought his emergency room would look like this.

DR. JAMAL TAHA, IRAQI SURGEON: This is a bullet injury. Yes (UNINTELLIGIBLE)...

COOPER: Gunshot wounds, traffic accidents, victims of explosions -- everyday at Yarmouk Hospital, one of Baghdad's largest, Dr. Taha sees it all.

TAHA: You see, this is the bullet.

COOPER: Their x-rays are primitive, supplies short, their medical equipment nearly 30 years old.

TAHA: That's the only microscope here.

COOPER: This is the only microscope?

TAHA: The only microscope here.

COOPER: The coalition authorities say they've delivered 30,000 tons of pharmaceuticals and medical supplies throughout Iraq, and spending on health care has increased by nearly $1 billion. But according to Dr. Taha, here little of that seems to be trickling down.

TAHA: Me, I respect the USA and I love the USA, because they are the most developed country in the world. But they do nothing for us.

COOPER: Dr. Taha may love the United States, but he doesn't like the U.S. occupation, though he hopes American troops remain here for a long time to come. He worries about what he is seeing in his fellow Iraqis.

TAHA: The behavior of Iraqis, they are behaving in a bad way. They are aggressive. They -- you don't talk with any one of them. They are ready to fight, they are ready to kill.

COOPER: Gun toting guards and police walk the dingy halls of the hospital. The police are more trouble than they're worth, says Dr. Taha. Two weeks ago, a policeman accidentally fired his gun in the emergency room.

TAHA: They were planning (ph) on dropping (ph) with each other and a bullet shot here and -- behind your place, hitting the wall and injured a patient sitting here waiting and almost killed a doctor right behind me here.

COOPER: Wow, that was a bullet...

TAHA: From the policeman, yes.

COOPER: You can find the problems of the new Iraq in the rundown rooms of this hospital, but you can also find the possibilities. 18- year-old Mustafa lies on a bed with no sheets, recovering from a suicide car bomb explosion. 36 Iraqis were killed in the blast, all men wanting to join the new Iraqi army.

Though a terrorist nearly killed him, he still plans to join the army. "It's an honor," he says. "A hope for the new Iraq."

(END VIDEOTAPE)

COOPER: A hope indeed. "360" special edition live from Baghdad continues in a moment.

(COMMERCIAL BREAK)

COOPER: Time now for "The Buzz." Earlier we asked you, does today's -- does the new Iraqi government will be able to solve the country's security problems? Twenty-three percent of you said yes; 77 percent of you said no. Not a scientific poll, but it is your buzz.

Taking an old saying to "The Nth Degree" tonight. We say it often enough. The pen is mightier than the sword. But seldom do we see that idea tested in real life as starkly as it was today. Look, here is what the pen did today -- produced the papers that gave Iraq back its sovereignty. But then, about the same time the pen was finishing that important work, a sword was wielded in opposition to it, above the head of a young man whose life, his captors say, will be forfeited if their demands are not met. Just as sad to say Matt Maupin's life seems already to have been forfeited. It is something we say all the time, with all the confidence in the world. They say the pen is mightier than the sword. Hope that's true in the long run. Just for today, though, it wasn't so clear.

I'm Anderson Cooper, live from Baghdad. Thanks for watching a special edition of 360. Stay tuned for another special edition of "PAULA ZAHN NOW," live from Camp Lejeune.

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