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CNN Newsnight Aaron Brown

Pentagon Might Want Access To Bases in Iraq in Future Under New Government There

Aired April 21, 2003 - 23:00   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.


ARRON BROWN, HOST: And some of the big stories of the night, we begin our second hour of NEWSNIGHT and our second whip of the evening at the Pentagon.
Our senior Pentagon correspondent Jamie McIntyre starts us off with questions about the U.S. military footprint in Iraq over the long term.

Jamie, a headline?

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, Aaron, it started out as a modest proposal that maybe the Pentagon might want access to some bases in Iraq in the future when there's a new government there. But when Defense Secretary Donald Rumsfeld about it, he decided it was exactly the wrong message and he put a stop to it today.

AARON BROWN: Jamie, thank you.

Thousands of Shi'ite Muslims are on the move in a pilgrimage that had long been banned by Saddam Hussein.

Karl Penhaul is covering that from Karbala tonight. Karl, a headline?

KARL PENHAUL, CNN CORRESPONDENT: Hi, Aaron. Tens of thousands, if not hundreds of thousands of Shi'ite Muslims flocking here to Karbala to celebrate that newfound religious freedom.

At the same time, there's a bit of a political undertone developing here. Many of those coming here are also calling for the end of U.S. -- for U.S. and British troops here in Iraq.

AARON BROWN: Karl, thank you.

To Jerusalem next. And the big story there, an important fight involving the leadership of the Palestinians. Kelly Wallace on that for us tonight.

Kelly, a headline?

KELLY WALLACE, CNN CORRESPONDENT: Aaron, a fierce power struggle is underway with a new Palestinian prime minister threatening to resign unless Yasser Arafat gives up more power, it is an impasse that could threaten a new peace plan for the Middle East. AARON BROWN: Kelly, thank you.

And back home now, an update on the case of Laci Peterson.

Rusty Dornin in Modesto, California. Rusty, a headline?

RUSTY DORNIN, CNN CORRESPONDENT: Aaron, accused of killing his wife and unborn son, Scott Peterson tells the judge and the world that he's not guilty and some heart wrenching words from the family of Laci Peterson, who speak out for the first time since the death of Laci and her unborn son, Connor.

AARON BROWN: Rusty, thank you. Back to you and the rest shortly.

Also coming up over the next hour of NEWSNIGHT, more on SARS and a look at the economic impact through the prism of one Asian country. A report on lonely days in places across Singapore.

And rebuilding Iraq, both at enormous challenge and a big business. Who should decide which companies get that business? Are the companies connected to the White House getting a first crack? We'll talk with Senator Ron Widen of Oregon, who's trying to make sure this process, billions of dollars of your tax money, is an open one.

All that's to come in the hour ahead. But we begin with the future of the U.S. military presence in Iraq. If the Pentagon wants to establish a big permanent presence anywhere in the world, the word it sometimes uses is footprint. It didn't take long today for the Pentagon's boss to knock down speculation that just such a footprint is exactly what the U.S. wants in a new Iraq.

Our senior Pentagon correspondent Jamie McIntyre has the watch tonight -- Jamie?

MCINTYRE: Well, Aaron, this story started over the weekend, when some senior military officials told "The New York Times" that maybe in the future, the United States might want to have some long range access or long term access to some of Iraq's bases. Some senior military officials told CNN pretty much the same thing after it appeared in "The Times."

But apparently, they should have checked a little more with their boss because when Defense Secretary Rumsfeld saw the stories, he hit the roof. If this was a trial balloon, he shot it down with the precision of a Pentagon smart bomb.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): With some Iraqis already calling for a U.S. withdrawal, and many in the world suspicious the U.S. is bent on empire building in the Gulf region, U.S. Defense Secretary Donald Rumsfeld moved quickly to quash statements by some U.S. military officials that the U.S. is hoping for long term access to military bases in Iraq. DONALD RUMSFELD, DEFENSE SECRETARY: The impression that's left around the world is that we plan to occupy the country. We plan to use their faces over the long period of time. And it's flat false.

MCINTYRE: The U.S. currently operates four main air bases in Iraq. Tallil in the south, H-1 in the west, Baghdad International Airport in the center, and the Bashur Airfield in the Kurdish dominated north.

Some Pentagon officials indicated the U.S. might want, at the very least, to negotiate access agreements with the new Iraqi government for use of the bases after most U.S. troops have withdrawn.

The suggestion inflamed passions in the Arab world, and infuriated Rumsfeld, who when out of his way to denounced the unnamed U.S. officials who made the suggestion.

RUMSFELD: And I would rank them right at the bottom in terms of reliability, credibility, judgment, knowledge. They are unhelpful.

MCINTYRE: Rumsfeld argues that with Saddam Hussein gone, the U.S. is likely to need fewer troops in the region, not more. Over the past decade, the U.S. has maintained roughly 20,000 troops in the region, including an aircraft carrier deployed full time in the Persian Gulf, an Army brigade in Kuwait, and hundreds of aircraft in Saudi Arabia and Turkey to patrol the now defunct no fly zones.

Many of those troops, planes and ships may now be withdrawn, Pentagon officials say.

But given the U.S. has long term bases in Japan and Germany, two other countries the U.S. says it liberated, there is a deep seated belief among some critics that this time will be no different.

PHYLLIS BENNIS, INSTITUTE FOR POLICY STUDIES: He was careful not to use the word "never." So what happens later will have a great deal of flexibility. And he'll say well, this isn't a permanent base.

(END VIDEOTAPE)

MCINTYRE: Rumsfeld went to great lengths to say that this topic had never come up in any conversation that he'd at the Pentagon. But at the same time, he didn't absolutely say that this could never happen. He just said it was very, very unlikely.

And when my colleague, Barbara Starr asked him but wouldn't be logical that the United States would want, at some point, to have at least access or some sort of military to military relationship with Iraq, he said it may be logical, but we're not doing it -- Aaron.

AARON BROWN: So what was the motivation, do you think, of the sources here?

MCINTYRE: Well judging from what I could tell, I think the people -- this a case, I think, where a lot of people who are working under the Secretary of Defense try to anticipate all the various things the United States might want to do in the future, and try to make some sort of a plan for how they might come about.

And this was -- and we were cautioned all along that this was just something that was -- that no decisions have been made about something that people were thinking of, trying to think ahead. But apparently, they thought ahead of where Rumsfeld was, because Rumsfeld very aware that this exactly the wrong message that the United States doesn't want to send a message that it's going to be in Iraq any longer than it has.

And so, when he heard about, he just basically came down and decided to shoot it down.

AARON BROWN: He did that today. Thank you, Jamie. Senior -- Pentagon correspondent, Jamie Mcintyre.

Before the reconstruction of Iraq is finished, a retired American general will have a great deal to say about who does what, who's priorities win out over their competitors and it's fair to say every day life in many corners of that country.

So today was only a small first step, but it offered as a good window as any on the speed bumps. And there are plenty of them that lie ahead.

Here's CNN's Rula Amin.

(BEGIN VIDEOTAPE)

RULA AMIN, CNN CORRESPONDENT (voice-over): This is the man in charge of running Iraq. General Garner's first talk was Elmoud (ph) hospital The looters were there before him. Garner was faced with the reality, a hospital without enough power, and little clean running water.

UNIDENTIFIED MALE: Centralized, very, very centralized.

AMIN: This was a state owned, state run hospital. Now there is no government Iraq. There is no one to buy medical equipment to replace what the looters took.

And no one to pay the staffers salary. The hospital staff had a long list of demands and complaints.

"His words don't do much to me," says one staffer. I used to think change on the ground.

"We have no work. How can we buy our bread," saying a mother staffer? "This not liberation, this is occupation. And how come they can only protect the oil ministry and the oil facilities?"

Garner promised to help, but said he will need time. How much time he wouldn't say, as long as it takes, he insists.

GEN. JAY GARNER, OFFICE OF RECONSTRUCTION & HUMANITARIAN ASSISTANCE: I don't have a time table for anything. We do everything as fast as we can. And we'll do this well if we can. I tell you my impression, as I walked in here -- I walked in the health clinic and I saw Berlelyn (ph) some of the -- his people there working with the doctors. And the doctors were fairly comparable there, doing things themselves. all they need is the equipment to it.

Now I walked in here and I saw the Iraqi engineers who are incredibly confident, doing that with some assistance from U.S. engineers. But again, all -- they needed was just a quick -- with the help...

AMIN: Garner is in charge here until a new interim government is in place. He will oversee the reconstruction of Iraq and the delivery of foreign aid to the Iraqis.

And he needs the help of the old Iraqi bureaucracy and new blood.

Hundreds of Iraqis are already lining up. They fill in their names and their qualification. Then they are searched before hey are bust to inside one of the presidential palaces to be interviewed.

Elsewhere in Baghdad, other Iraqis were on the streets for a completely different reason, to demand U.S. troops leave Iraq immediately. They want to run their own affairs now.

Rula Amin, CNN, Baghdad.

(END VIDEOTAPE)

AARON BROWN: Fair to say, this a very good day for the Shi'ite Muslims in Iraq. Another of the Iraqi most wanted was captured, someone known as a brutal oppressor of the Shi'ites.

And tens of thousands were on a religious pilgrimage that would have put them at risk of death under the regime of Saddam Hussein. This would seem like a win-win situation for the United States in trying to gain acceptance in Iraq, but it is not quite so.

We go back to Karl Penhaul, who is in Karbala tonight -- Karl?

PENHAUL: Aaron, yes, take a look at some of the pictures we've shot earlier this morning, some of the -- this will give you an idea of some of the religious fervor that we're seeing here in Karbala. Some of the pilgrims were walking here, cutting their heads.

Yesterday, we saw some crawling. Here, like I say, you're seeing the pictures of the people cutting their head. This is one of the ritual flagellations that they're performing. Others have been beating themselves with metal chains on their backs. Others have been crawling here.

The common theme amongst all of these is that yes, they're celebrating newfound religious freedom. Under Saddam Hussein, they weren't able to fulfill the Muslim -- Shi'ite Muslim dictate that they would walk here. They were only allowed to travel here in very small numbers in buses and trucks. And so, this is really turning into a celebration of a newfound religious freedom, Aaron. At the same time, though, there are some interesting developments here. The crowds are not all happy with the continuing U.S. and British presence in Iraq. Seems incredible to say, but so few days after the fall of Saddam, but they are calling for a quick withdrawal of U.S. and British troops. They're also comparing in some cases U.S. and British policy in the region with the policy of Israel.

We've seen some of the marches here, standing in the middle of the street chanting no to America, no to Israel, no to the devil. Those scenes, I would imagine, will continue today.

As you can see now, we're shortly after 7:00 in the morning, tens of thousands of pilgrims are streaming in. These pilgrims have streamed in all through the night. Some have come from relatively near. I followed a group of pilgrims from the city -- in a holy city of al Najaf, about 45 miles away yesterday. But I've also been talking down there in the crowds to pilgrims who have walked in the southern city of Basra.

One man told me he'd been walking for 18 days. Imagine that, that he would have set out from home before the fall of the Saddam Hussein regime. Some point, midway on that journey, he would have found out that Saddam Hussein's regime had fallen, that he was actually going to complete his trip.

Some of the people here have spoken how in previous years, they've tried to make this trip walking and have ended up on in prison for anything for to three, four months -- Aaron.

AARON BROWN: Just a -- one quick question. They said that you can figure this out. Do the Shi'ias seem to want a theocracy to replace the regime of Saddam Hussein?

PENHAUL: The people on the streets are calling yes for the foundation of some kind of Islamic law, some government based on Islamic law. The major clerics that I've spoken to, however, are being very careful with the way that they phrase matters.

They've said that they're not seeking high political office. On the other hand, they do say that from their positions, they want to have a profound effect on the social and civil life of Iraq. One might say that those things equate to a strong hand in politics. And it's certain that over the next -- the coming days here in Karbala, the cleric who wins the masses over here will have a profound effect on the shape of Iraq's political future -- Aaron.

AARON BROWN: Karl, thank you. Karl Penhaul in Karbala.

It is a new day there, too.

Well as demonstrations in Iraq may be new for that country at least over the last generation or so, but they're part of the daily landscape in countries like Israel and on the West Bank and in Gaza. Part of that landscape, too, has been the chairman of the Palestinian Authority, Yasser Arafat. Now he is on his way out more or less. And a new man is poised to take over to try and negotiate peace. It was supposed to be relatively easy.

But fading out gracefully, at least giving up power, is not in anyone's make up in the Middle East.

We go back to Kelly Wallace in Jerusalem -- Kelly?

WALLACE: Aaron, this is a struggle over power involving two very large personalities: Yasser Arafat and the man he appointed prime minister, Mahmoud Abbas, widely known as Abu Mazen.

And if Abu Mazen and Yasser Arafat do not settle this dispute by Wednesday, the much promised roadmap for Middle East peace might not be released any time soon.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): The two men who once warmly embraced are now said to be locked in a power struggle with a Wednesday deadline fast approaching. That is when Palestinian Prime Minister Desigen (ph) Abu Mazen is required by law to put a cabinet together or step down as prime minister.

GILASSAN KHATIB, PALESTINIAN MINISTER: My information is that Abu Mazen is making significant progress and I expect that he is going to be able to present a cabinet before the end of the deadline.

WALLACE: Abu Mazen stormed out of a meeting with Palestinian President Yasser Arafat Saturday night, threatening to resign if Arafat did not approve his cabinet selections, according to Palestinian sources.

The major dispute centers on who will be head of security for the new government. Palestinians on the street signal their patience is wearing thin.

UNIDENTIFIED MALE: We need to hurry up and get things going with Abumazin or somebody else. And so, we could rest and we could sit down and start building up their Palestinian economy.

WALLACE: The states extend far beyond the two men, because the Americans and the British have made Abu Mazen's cabinet a condition for the publication of a so-called roadmap for Middle East peace.

SAEB ERAKAT, PALESTINIAN CHIEF NEGOTIATOR: A bigger picture is their engagement of the peace process. The bigger picture is then production of the roadmap. And this means that Abu Mazen must succeed.

WALLACE: To succeed, Abu Mazen must have enough power to be viewed as credible by Israel and the United States, who want to see Arafat sidelined without losing the trust of Arafat and the support of the Palestinian parliament, which must also approve the cabinet.

(END VIDEOTAPE)

WALLACE: Brinksmanship politics is how one Palestinian source described it. With Yasser Arafat said to be already looking around for other candidates for prime minister. But many believing after this tug of war Abumazin will get the cabinet he wants and will remain in his current job -- Aaron.

AARON BROWN: And he'll get the cabinet he wants, including the man to run the security apparatus, a man who's generally at least in the scheme of things over there, seen favorably by the United States?

WALLACE: Seen favorably the United States and the Israelis. We're talking about a man by the name of Mohammed Dahlan. He used to head up security for the Palestinians in the Gaza Strip. It's not clear, Aaron, if a compromise will be reached that might mean that Dahlan won't exactly have the title of interior minister. Perhaps he could have a different title, but still have some security powers. People we are talking to saying that Abumazin is going to hold firm over Mohammed Dahlan. But again, we will wait to see if this can be worked out before that Wednesday deadline -- Aaron.

AARON BROWN: Kelly, thank you. Kelly Wallace in Jerusalem.

Ahead on NEWSNIGHT, the rest of the day's news, beginning with the Laci Peterson case, as her husband Scott appears in court to face double murder charges, potential capital case.

And later, the SARS effect, empty hotels, restaurants and airplanes. We'll give you a look at Singapore these days. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

AARON BROWN: More now on the Laci Peterson story. We saw earlier the tragedy of the case. A family that is filled with rage and heartbreak.

Rusty Dornin has been following the legal drama. Scott Peterson charged in the murder of his wife and unborn son -- Rusty?

DORNIN: Well, Aaron, you know, this is one of those cases where the courtroom was very highly charged. People were wondering how the Peterson family and how Laci's parents and brother and sister would react to one another in the courtroom, and also to Scott coming in.

Before the proceedings started, Jackie Peterson, Scott's mother, got up and went over and made a point to hug Laci's mother, saying, "I'm sorry." That was a very poignant moment before the court proceeding began. Not long afterwards, Scott Peterson entered the courtroom, having shaved his goatee, still sporting a different hair color.

Of course, shackled and handcuffed, he sat down and answered the judge's questions. And also, when he gave his plea in a very loud, clear voice, he said "I am not guilty." Now very shortly after the arraignment, the Rocha family gave a heartwrenching press conference for the first time speaking out after the bodies had been identified. Sharon Rocha talked about a promise she made to her daughter.

(BEGIN VIDEO CLIP)

SHARON ROCHA, LACI'S MOTHER: Soon after Laci went missing, I made a promise to her that if she has been harmed, we will seek justice for her and Connor and make sure that that person responsible for their deaths will be punished.

I can only hope that the sound of Laci's voice begging for her life and begging for the life of her unborn child is heard over and over and over again the mind of that person every day for the rest of his life.

The person responsible should be held accountable and punished for the tragedy and devastation forced upon so many of us.

(END VIDEOCLIP)

DORNIN: Now you can see Scott Peterson's family leaving the courtroom. They went back inside the courthouse to speak to the attorneys. But throughout the last couple of days, they have been giving a number of interviews, talking about how they firmly back their son's innocence.

(BEGIN VIDEO CLIP)

LEE PETERSON, SCOTT'S FATHER: Can't see properly because he's locked up in this place here. Because you know, they made a rush to judgment because of all the media pressure, I believe and politics. And he's in there. He should not be. And we're going to find out who did it and...

(END VIDEO CLIP)

DORNIN: Now Scott Peterson will be back in court on -- excuse on May 6 for a bail hearing. And also on May 19th, for a pre-trial.

Now the D.A., Jim Brazleton, talked about that it might be a couple of weeks before they do decide whether they will pursue the death penalty in this case.

Meantime, Laci Peterson's family says they are now working on the funeral arrangements and have not yet announced a date for her -- the memorial -- Aaron.

AARON BROWN: Rusty, thank you. Rusty Dornin in Modesto, California.

More now on SARS and very lonely jobs these days in Asia. Travel agent with no tourists to book, a waitress with no patrons to serve, a hotel piano man with no one to listen to him play. One way to view the seismic impact of SARS on business, a look at how one big economy is coping, Singapore's economy from CNN's Andrew Brown.

(BEGIN VIDEOTAPE)

ANDREW BROWN, CNN CORRESPONDENT (voice-over): Wednesday evening at Singapore's Le Meridien, and the piano player's performing another solo, quite literally. He's just about the only person in the lobby. This downtown hotel has never experienced occupancy this low. Only 30 percent of rooms are sold. Breakeven point is around 50 percent. So it's no wonder the management's been cutting costs.

RUDOLF BORGESIUS, LE MERIDIEN GENERAL MGR.: We don't have any more new recruits, no overtime. We just ended a five day work week. Normally people work in Singapore six days in the hotel business. So it's five days. And with these measures, we should be able to cut down our losses.

ANDREW BROWN: It's the same story all over town. SARS has depressed tourism, leaving many hotels and retailers without customers.

UNIDENTIFIED MALE: Business is very bad.

UNIDENTIFIED MALE: It's down by mostly 80 percent.

ANDREW BROWN: The government's predicted SARS will shave a half to one percentage point off annual growth. The good news is analysts say they don't see Singapore's electronics manufacturers being strongly affected by SARS, since buyers will continue to source chips and other components from here.

The bad news is these manufacturers are mainly supplying U.S. tech companies, which according to some experts, are still in a fragile state.

V. ANANTHA-NAGESWARAN, CREDIT SUISSE PRIVATE BANKING: Despite the (unintelligible) that we have seen the last couple of days in Microsoft or Intel, both top line and bottom line growth still looks very sluggish, to put it mildly.

ANDREW BROWN: While some Singaporean businesses may be racing into the red, Lee Juan Tsao is upbeat about his prospect. Each day, he's paying 12 percent less for the taxi he drives around town, part of a special SARS discount.

LEE JUAN TSAO, TAXI DRIVER: Our company reduced our rent. You see, yes, this is how companies look into the welfare of taxi drivers.

BROWN: Mr. Lee regularly disinfects his taxi, but it'll take more than a clean machine to get the Singapore economy firing on all cylinders again.

With new SARS cases reported each day, many people are staying away from bars and restaurants to reduce the risk of infection. Apparently they're being productive in other ways.

WEI SIANG YU, SINGAPOREAN DOCTOR: With the couples, the husband and wife are spending more time together. I think it's about time that for pro-creation.

ANDREW BROWN: Love in the time of SARS is blossoming.

Andrew Brown, CNN, Singapore.

(END VIDEOTAPE)

AARON BROWN: Coming up on NEWSNIGHT, rebuilding Iraq and questions of what companies are getting the contracts to do it and why. We'll update the headlines, too. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

(NEWSBREAK)

(COMMERCIAL BREAK)

AARON BROWN: It's a given that rebuilding Iraq will be a huge job both in terms of energy and money. The private company that stands to benefit the most at the outset, at least, is not very well known to most Americans but the war has brought the Bechtel Corporation to the forefront and energized an old debate about just who gets the inside track when more than a half a billion dollars is at stake.

Here's CNN's Judy Woodruff.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN ANCHOR (voice-over): The new man in charge arrived in Baghdad Monday promising to restore order and services to war-torn Iraq. Retired General Jay Garner is charged with rebuilding a country from the ground up, making sure the water is safe to drink and roads and bridges are ready for traffic again.

He'll be leaning heavily on Bechtel, a San Francisco based company which last week won the largest contract so far in the reconstruction effort. The payout could be worth up to $680 million over 18 months. Bechtel was selected from among a handful of companies the Bush administration specifically invited to submit bids for major construction projects in post-war Iraq.

ANDREW NATSIOS, ADMINISTRATOR, USAID: That collapsed the process which normally takes six months to two months because the president said I want all of this in place by the time peace comes to the country so we can begin the reconstruction process immediately.

WOODRUFF: But the expedited contracting process has sparked concern on Capitol Hill. Some Democratic Congress members have complained the bidding was conducted in secret, noting that only select companies were allowed to compete. Others cite Bechtel's history of hefty campaign contributions, pointing out that several former Reagan administration officials, including former Defense Secretary Caspar Weinberger have served on its board of directors.

LARRY NOBLE, CENTER FOR RESPONSIVE POLITICS: The question that has to be asked of the administration is why did you need to do this where you invited six companies to bid? You did not open it up and that you did this under secrecy and basically what you see is a company with political ties, with political contributions getting the bulk of the contracts.

WOODRUFF: Reagan's Secretary of State George Schultz currently sits on the Bechtel board. He insists the contracting process was conducted in plain sight.

GEORGE SCHULTZ, FORMER SECRETARY OF STATE: I'm not a part of this process. I don't have a managerial role in Bechtel but, as I understand it, Bechtel was invited to bid, did so. The process is transparent, competitive, will continue to be so and that's the way it should proceed.

WOODRUFF: There's also been concern from British and Arab officials that only American companies were considered for the major reconstruction contracts. Bechtel has promised to open its subcontracting process to anyone who wants to apply.

Judy Woodruff, CNN, reporting.

(END VIDEOTAPE)

AARON BROWN: While this process is not nearly smart enough nor transparent enough for some members of Congress, as Judy indicated, in the Senate a bill has been introduced to shed light on a process that could eventually cost tens of billions of your dollars. Its sponsors include Republican Senator Susan Collins of Maine and Democrat Ron Wyden of Oregon. We talked to Senator Wyden earlier tonight.

(BEGIN VIDEOTAPE)

AARON BROWN: Senator, take 30 seconds or so and talk about what it is you hope to accomplish with the bill that you and other introduced?

SEN. RON WYDEN (D), OREGON: Well, at a time when taxpayer money is very scarce for schools and healthcare and basic services, what we want to do is make sure that every dollar that is used to reconstruct Iraq is spent efficiently. And so, our legislation calls for public disclosure of any contract that goes to rebuild Iraq that's non- competitive.

AARON BROWN: Is it your belief that in the contracts that have been awarded so far that there hasn't been enough disclosure? What is it you want to know that you don't yet know?

WYDEN: Well, information is very skimpy to date. I think it's fair to say the public is really in the dark about the contracts that have been let thus far. What we do know is that it seems that some very powerful firms, influential firms, have gotten contracts and that just reaffirms in my mind how important it is that these contracts be let in the sunshine and not behind a smokescreen.

AARON BROWN: The administration has made the argument that there is simply no time to go through the formal bidding process. Do you agree at least in principle that these contracts need to be let quickly?

WYDEN: There's no question that they need to be let quickly but that's not inconsistent with a full and open process if it's handled properly. So, what we say is that if they're not going to do it in the open at least the public's got a right to know as to why that's the case.

What I heard at home in my community meetings this past week is people want to know how these companies are being picked. They want to know how the process works and they want to know whether this is the best use of scarce taxpayer money. By the way, with so many people out of work in this country we've met a lot of companies and a lot of workers who would like to have a chance to get this work.

AARON BROWN: Again, I think the administration argument is that there are very few companies that are really qualified to handle projects of this magnitude. Is that overstating the situation?

WYDEN: If that's the case then they ought to tell the public why it is the case. I can tell you I heard from a lot of companies at home that, in particular, they'd be interested in being subcontractors. Our hope is that maybe at some point some Oregon companies, some other companies around the country will get a chance to compete.

But at this point, the public really doesn't have that kind of information and I've always felt that sunlight is the best disinfectant and that's what we really need here.

AARON BROWN: Do you think there will be opposition to the bill?

WYDEN: Well, I think it's pretty hard for somebody to stand up and defend secrecy and a non-competitive bidding process but what usually happens is that when there's opposition to something like this very often that opposition is expressed in secret.

So, what we're trying to do with our bipartisan bill, the chair of the relevant committee is Susan Collins of Maine, we're going to try to build a bipartisan juggernaut for this legislation and make it a priority for Congress when we come back.

And it seems to me when you're talking about spending at least $25 billion and possible $100 billion at a time when seniors can't afford medicine and a lot of people are out of work, we ought to spend this money wisely.

AARON BROWN: How much of that $100 billion, we hear that figure a lot, how much of that $100 billion do you expect to be taxpayers dollars?

WYDEN: At this point, again with information so skimpy nobody can really answer that precisely. Of course, the hope is that much of the reconstruction will be paid for with funds generated by Iraqi oil. But I think it's fair to say that the conservative estimates are with respect to taxpayer money for reconstructing Iraq we're talking $25 billion and some of the estimates go upward of $100 billion.

AARON BROWN: And that money, no matter how these contracts are let, that money has to be appropriated by the Congress doesn't it?

WYDEN: The money certainly would have to be appropriated by the Congress but, again, if the Congress is kept in the dark about these contracts and certainly a troubling pattern has emerged right now, then the Congress has a responsibility to change that.

I can tell you what I heard again and again over this past week is that the American people are generous and kind but they are hurting. You've got folks out of work, local communities having difficulty paying for basic services, and they want to be very sure that this money is spent efficiently at a time when there's so much agony here in country.

AARON BROWN: Well, Senator, we will follow the path of the bill. It will be interesting to see if it gets all the hearings and all the votes and we appreciate your time tonight.

WYDEN: Thanks for having me.

AARON BROWN: Thank you, Senator.

(END VIDEOTAPE)

AARON BROWN: Oregon Senator Ron Wyden.

Ahead on NEWSNIGHT we'll take a look at tomorrow's news for goodness sakes, tomorrow morning's papers from around the country and around the world.

But a break comes first. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

AARON BROWN: Time to check morning papers from around the country and around the world. We begin, for no particular reason except that it's on top, in Dallas, "The Dallas Morning News. A couple of Iraq stories, one a nice job of localizing the story. Southern Baptists plan to send evangelists to Iraq to do some conversion work, some proselytizing work, so they put that on the front page.

And the other big front page story that caught our eye, "Second Union aiming to hold the new vote." American Airlines is based in Dallas and there was this terrible flap, you know, Americans asking employees to take significant wage cuts and then just as they were voting on it, it came out that management, senior management, was promised some hefty bonuses and son of a gun if that didn't annoy the workers some so there was an apology from the head of United -- or rather, American. And that same story, "American's Chief apologizes as unions consider new vote on deal" is also a big story, front page story in "The Miami Herald" which their main story on Iraq is "Rebuilding moves forward." And they also get into Super Bowl in 2007, so they put that on the front page also, at least they think they are.

"St. Louis Post Dispatch" on General Garner's visit today, "General gets chilly reception" is the headline. There we go. Oops, there we don't go. "General gets chilly reception" is their take on the story and the American Airlines story is a front page story in the St. Louis paper too. There's probably a good reason for that but I don't know what it is, can't know everything.

The "Herald Journal" of Spartanburg, South Carolina, big story is the city manager quit, "City manager up and quit" for personal reasons she said. The other big story, at least the one that caught our eye, I mean the retired general is there in their main Iraq story, but "Upstate dad loses son in war." A local man lost his child, his son in the war and that's worthy of the front page in any place.

"The Cincinnati Enquirer," -- how are we doing on time? Thirty okay. "Pastor rebuked in gay marriage case." A Presbyterian pastor was found guilty of marrying gays but received the lightest possible punishment and I'm not sure what that is but that's a big story in "The Cincinnati Enquirer," and that's a quick look at the morning papers.

If you're following politics these days, you won't necessarily find this story in a newspaper unless it's "The Des Moines Register" or perhaps the Manchester newspaper in New Hampshire. It's been a very lonely road for Democrats who are running for the presidential nomination. Everyone's been focusing on the war, almost nobody focusing on them. Most of their speeches and debates have been pretty much ignored.

So, in the spirit of catching up, and thorough reporting of course, CNN's Candy Crowley tonight has a very early, and we do mean very early, report card.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): With the pre-war of the war and now the post-war, you have not heard much lately from the '04 candidates, which is not altogether a bad thing.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: But if anybody here is asking the big question, can a man be president of the United States without a prostate? I say to you why not? We've had a number of Republicans who have been president without a heart, without a brain, why not?

CROWLEY: That's presidential hopeful John Kerry practicing his humor.

This is presidential hopeful Al Sharpton promoting his alternative resume.

REV. AL SHARPTON, PRESIDENTIAL CANDIDATE: I know unquestionably, unequivocally I've been to jail more times than anybody running for president of the United States.

CROWLEY: And so, it went at the Building Trade Union meeting earlier this month. There had been a couple of those, come one, come all events recently. Topics range from war to childhood obesity. There were some disagreements on the margins of policy and one certainty.

UNIDENTIFIED FEMALE: A minute or less, Senator Braun.

CAROL MOSELEY BRAUN, PRESIDENTIAL CANDIDATE: Thank you very much, Judy. I was pointing out I went under a minute on my opening or close to it, in any event...

CROWLEY: An hour divided by nine doesn't give you much time to talk.

SEN. JOE LIEBERMAN (D-CT), PRESIDENTIAL CANDIATE: Is this the bottom of the ninth as far as presidential candidates go?

CROWLEY: Apropos to nothing except maybe the hectic pace of the campaign trail, is that a laundry tag on Joe Lieberman's shirt cuff? That's Senator Bob Graham, AKA Candidate #9, on his maiden voyage to New Hampshire just last week. Late into the game because of major heart surgery, Graham spent very little money this quarter but did manage to raise over $1 million, most of it out of Florida.

Honors in the first quarter of the money chase went to John Edwards who leaned heavily on fellow lawyers to beat out John Kerry for most money raised. Kerry spent the most, although Lieberman spent a greater percentage of what he raised than anyone else. And, Gary Hart, he's still giving speeches like he's going to run for president but hasn't said publicly that he will. That would make ten candidates, and if it keeps going like this, pretty soon we're going to need a deck of cards to keep them all straight. So far, nobody seems to have an ace in the hole.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

AARON BROWN: We'll wrap up Monday night on NEWSNIGHT in just a moment.

(COMMERCIAL BREAK)

AARON BROWN: Earlier today, Laci Peterson's mom tried to give us a sense of the horror she and her family have lived over the last four months.

(BEGIN VIDEO CLIP)

SHARON ROCHA, MOTHER OF LACI PETERSON: On December 24, 2002, shortly after 5:15 p.m., I received a phone call and heard the devastating words that forever changed my life, Laci's missing. I knew in my heart that something terrible had happened to my daughter and my grandson. My world collapsed around me.

Since receiving that phone call we have been living a terrible nightmare. The search for Laci began that night. The questions were always there. What happened to Laci? Where is she? Is she safe and who took her from me?

I made a plea to the person or persons who took her to please, please let her go and send her home to us. We heard nothing. As the days passed, I made more pleas to take her to a hospital or fire or police station or tell us where she is so that we can come to her and bring her and her baby home safely and still we heard nothing.

We searched and searched and searched and still no Laci. I love my daughter so much. I miss her every minute of every day. My heart aches for her and Connor. Without them there is a huge void in my life. I literally get sick to my stomach when I allow myself to think about what may have happened to them. No parent should ever have to think about the way their child was murdered.

In my mind I keep hearing Laci say to me, mom please find me and Connor and bring us home. I'm scared. Please don't leave us out here all alone. I want to come home. Please don't stop looking for us. Except for that Laci and Connor can no longer wait to be found so last week they came to us.

Laci and Connor left us on Christmas Eve. I know that God has been watching over them. He sent them back to us on Good Friday. Now we can bring them home where they belong. Laci and her unborn child did not deserve to die. They certainly did not deserve to be dumped in the bay and sent to a watery grave as though their lives were meaningless.

Laci meant the world to me. She was my only daughter. She was my best friend. We miss her beautiful smile, her laughter, her love, and her kind and loving ways. I miss seeing her, talking to her and hugging her. We have been deprived of meeting and knowing Laci's son, our grandson, and nephew. We will miss them and mourn them for the rest of our lives.

Soon after Laci went missing, I made a promise to her, that if she's been harmed we will seek justice for her and Connor and make sure that that person responsible for their deaths will be punished.

I can only hope that the sound of Laci's voice begging for her life and begging for the life of her unborn child is heard over and over and over again in the mind of that person every day for the rest of his life. The person responsible should be held accountable and punished for the tragedy and devastation forced upon so many of us.

(END VIDEO CLIP)

AARON BROWN: We'll see you tomorrow. Goodnight for all of us at NEWSNIGHT. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





Under New Government There>


Aired April 21, 2003 - 23:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ARRON BROWN, HOST: And some of the big stories of the night, we begin our second hour of NEWSNIGHT and our second whip of the evening at the Pentagon.
Our senior Pentagon correspondent Jamie McIntyre starts us off with questions about the U.S. military footprint in Iraq over the long term.

Jamie, a headline?

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, Aaron, it started out as a modest proposal that maybe the Pentagon might want access to some bases in Iraq in the future when there's a new government there. But when Defense Secretary Donald Rumsfeld about it, he decided it was exactly the wrong message and he put a stop to it today.

AARON BROWN: Jamie, thank you.

Thousands of Shi'ite Muslims are on the move in a pilgrimage that had long been banned by Saddam Hussein.

Karl Penhaul is covering that from Karbala tonight. Karl, a headline?

KARL PENHAUL, CNN CORRESPONDENT: Hi, Aaron. Tens of thousands, if not hundreds of thousands of Shi'ite Muslims flocking here to Karbala to celebrate that newfound religious freedom.

At the same time, there's a bit of a political undertone developing here. Many of those coming here are also calling for the end of U.S. -- for U.S. and British troops here in Iraq.

AARON BROWN: Karl, thank you.

To Jerusalem next. And the big story there, an important fight involving the leadership of the Palestinians. Kelly Wallace on that for us tonight.

Kelly, a headline?

KELLY WALLACE, CNN CORRESPONDENT: Aaron, a fierce power struggle is underway with a new Palestinian prime minister threatening to resign unless Yasser Arafat gives up more power, it is an impasse that could threaten a new peace plan for the Middle East. AARON BROWN: Kelly, thank you.

And back home now, an update on the case of Laci Peterson.

Rusty Dornin in Modesto, California. Rusty, a headline?

RUSTY DORNIN, CNN CORRESPONDENT: Aaron, accused of killing his wife and unborn son, Scott Peterson tells the judge and the world that he's not guilty and some heart wrenching words from the family of Laci Peterson, who speak out for the first time since the death of Laci and her unborn son, Connor.

AARON BROWN: Rusty, thank you. Back to you and the rest shortly.

Also coming up over the next hour of NEWSNIGHT, more on SARS and a look at the economic impact through the prism of one Asian country. A report on lonely days in places across Singapore.

And rebuilding Iraq, both at enormous challenge and a big business. Who should decide which companies get that business? Are the companies connected to the White House getting a first crack? We'll talk with Senator Ron Widen of Oregon, who's trying to make sure this process, billions of dollars of your tax money, is an open one.

All that's to come in the hour ahead. But we begin with the future of the U.S. military presence in Iraq. If the Pentagon wants to establish a big permanent presence anywhere in the world, the word it sometimes uses is footprint. It didn't take long today for the Pentagon's boss to knock down speculation that just such a footprint is exactly what the U.S. wants in a new Iraq.

Our senior Pentagon correspondent Jamie McIntyre has the watch tonight -- Jamie?

MCINTYRE: Well, Aaron, this story started over the weekend, when some senior military officials told "The New York Times" that maybe in the future, the United States might want to have some long range access or long term access to some of Iraq's bases. Some senior military officials told CNN pretty much the same thing after it appeared in "The Times."

But apparently, they should have checked a little more with their boss because when Defense Secretary Rumsfeld saw the stories, he hit the roof. If this was a trial balloon, he shot it down with the precision of a Pentagon smart bomb.

(BEGIN VIDEOTAPE)

MCINTYRE (voice-over): With some Iraqis already calling for a U.S. withdrawal, and many in the world suspicious the U.S. is bent on empire building in the Gulf region, U.S. Defense Secretary Donald Rumsfeld moved quickly to quash statements by some U.S. military officials that the U.S. is hoping for long term access to military bases in Iraq. DONALD RUMSFELD, DEFENSE SECRETARY: The impression that's left around the world is that we plan to occupy the country. We plan to use their faces over the long period of time. And it's flat false.

MCINTYRE: The U.S. currently operates four main air bases in Iraq. Tallil in the south, H-1 in the west, Baghdad International Airport in the center, and the Bashur Airfield in the Kurdish dominated north.

Some Pentagon officials indicated the U.S. might want, at the very least, to negotiate access agreements with the new Iraqi government for use of the bases after most U.S. troops have withdrawn.

The suggestion inflamed passions in the Arab world, and infuriated Rumsfeld, who when out of his way to denounced the unnamed U.S. officials who made the suggestion.

RUMSFELD: And I would rank them right at the bottom in terms of reliability, credibility, judgment, knowledge. They are unhelpful.

MCINTYRE: Rumsfeld argues that with Saddam Hussein gone, the U.S. is likely to need fewer troops in the region, not more. Over the past decade, the U.S. has maintained roughly 20,000 troops in the region, including an aircraft carrier deployed full time in the Persian Gulf, an Army brigade in Kuwait, and hundreds of aircraft in Saudi Arabia and Turkey to patrol the now defunct no fly zones.

Many of those troops, planes and ships may now be withdrawn, Pentagon officials say.

But given the U.S. has long term bases in Japan and Germany, two other countries the U.S. says it liberated, there is a deep seated belief among some critics that this time will be no different.

PHYLLIS BENNIS, INSTITUTE FOR POLICY STUDIES: He was careful not to use the word "never." So what happens later will have a great deal of flexibility. And he'll say well, this isn't a permanent base.

(END VIDEOTAPE)

MCINTYRE: Rumsfeld went to great lengths to say that this topic had never come up in any conversation that he'd at the Pentagon. But at the same time, he didn't absolutely say that this could never happen. He just said it was very, very unlikely.

And when my colleague, Barbara Starr asked him but wouldn't be logical that the United States would want, at some point, to have at least access or some sort of military to military relationship with Iraq, he said it may be logical, but we're not doing it -- Aaron.

AARON BROWN: So what was the motivation, do you think, of the sources here?

MCINTYRE: Well judging from what I could tell, I think the people -- this a case, I think, where a lot of people who are working under the Secretary of Defense try to anticipate all the various things the United States might want to do in the future, and try to make some sort of a plan for how they might come about.

And this was -- and we were cautioned all along that this was just something that was -- that no decisions have been made about something that people were thinking of, trying to think ahead. But apparently, they thought ahead of where Rumsfeld was, because Rumsfeld very aware that this exactly the wrong message that the United States doesn't want to send a message that it's going to be in Iraq any longer than it has.

And so, when he heard about, he just basically came down and decided to shoot it down.

AARON BROWN: He did that today. Thank you, Jamie. Senior -- Pentagon correspondent, Jamie Mcintyre.

Before the reconstruction of Iraq is finished, a retired American general will have a great deal to say about who does what, who's priorities win out over their competitors and it's fair to say every day life in many corners of that country.

So today was only a small first step, but it offered as a good window as any on the speed bumps. And there are plenty of them that lie ahead.

Here's CNN's Rula Amin.

(BEGIN VIDEOTAPE)

RULA AMIN, CNN CORRESPONDENT (voice-over): This is the man in charge of running Iraq. General Garner's first talk was Elmoud (ph) hospital The looters were there before him. Garner was faced with the reality, a hospital without enough power, and little clean running water.

UNIDENTIFIED MALE: Centralized, very, very centralized.

AMIN: This was a state owned, state run hospital. Now there is no government Iraq. There is no one to buy medical equipment to replace what the looters took.

And no one to pay the staffers salary. The hospital staff had a long list of demands and complaints.

"His words don't do much to me," says one staffer. I used to think change on the ground.

"We have no work. How can we buy our bread," saying a mother staffer? "This not liberation, this is occupation. And how come they can only protect the oil ministry and the oil facilities?"

Garner promised to help, but said he will need time. How much time he wouldn't say, as long as it takes, he insists.

GEN. JAY GARNER, OFFICE OF RECONSTRUCTION & HUMANITARIAN ASSISTANCE: I don't have a time table for anything. We do everything as fast as we can. And we'll do this well if we can. I tell you my impression, as I walked in here -- I walked in the health clinic and I saw Berlelyn (ph) some of the -- his people there working with the doctors. And the doctors were fairly comparable there, doing things themselves. all they need is the equipment to it.

Now I walked in here and I saw the Iraqi engineers who are incredibly confident, doing that with some assistance from U.S. engineers. But again, all -- they needed was just a quick -- with the help...

AMIN: Garner is in charge here until a new interim government is in place. He will oversee the reconstruction of Iraq and the delivery of foreign aid to the Iraqis.

And he needs the help of the old Iraqi bureaucracy and new blood.

Hundreds of Iraqis are already lining up. They fill in their names and their qualification. Then they are searched before hey are bust to inside one of the presidential palaces to be interviewed.

Elsewhere in Baghdad, other Iraqis were on the streets for a completely different reason, to demand U.S. troops leave Iraq immediately. They want to run their own affairs now.

Rula Amin, CNN, Baghdad.

(END VIDEOTAPE)

AARON BROWN: Fair to say, this a very good day for the Shi'ite Muslims in Iraq. Another of the Iraqi most wanted was captured, someone known as a brutal oppressor of the Shi'ites.

And tens of thousands were on a religious pilgrimage that would have put them at risk of death under the regime of Saddam Hussein. This would seem like a win-win situation for the United States in trying to gain acceptance in Iraq, but it is not quite so.

We go back to Karl Penhaul, who is in Karbala tonight -- Karl?

PENHAUL: Aaron, yes, take a look at some of the pictures we've shot earlier this morning, some of the -- this will give you an idea of some of the religious fervor that we're seeing here in Karbala. Some of the pilgrims were walking here, cutting their heads.

Yesterday, we saw some crawling. Here, like I say, you're seeing the pictures of the people cutting their head. This is one of the ritual flagellations that they're performing. Others have been beating themselves with metal chains on their backs. Others have been crawling here.

The common theme amongst all of these is that yes, they're celebrating newfound religious freedom. Under Saddam Hussein, they weren't able to fulfill the Muslim -- Shi'ite Muslim dictate that they would walk here. They were only allowed to travel here in very small numbers in buses and trucks. And so, this is really turning into a celebration of a newfound religious freedom, Aaron. At the same time, though, there are some interesting developments here. The crowds are not all happy with the continuing U.S. and British presence in Iraq. Seems incredible to say, but so few days after the fall of Saddam, but they are calling for a quick withdrawal of U.S. and British troops. They're also comparing in some cases U.S. and British policy in the region with the policy of Israel.

We've seen some of the marches here, standing in the middle of the street chanting no to America, no to Israel, no to the devil. Those scenes, I would imagine, will continue today.

As you can see now, we're shortly after 7:00 in the morning, tens of thousands of pilgrims are streaming in. These pilgrims have streamed in all through the night. Some have come from relatively near. I followed a group of pilgrims from the city -- in a holy city of al Najaf, about 45 miles away yesterday. But I've also been talking down there in the crowds to pilgrims who have walked in the southern city of Basra.

One man told me he'd been walking for 18 days. Imagine that, that he would have set out from home before the fall of the Saddam Hussein regime. Some point, midway on that journey, he would have found out that Saddam Hussein's regime had fallen, that he was actually going to complete his trip.

Some of the people here have spoken how in previous years, they've tried to make this trip walking and have ended up on in prison for anything for to three, four months -- Aaron.

AARON BROWN: Just a -- one quick question. They said that you can figure this out. Do the Shi'ias seem to want a theocracy to replace the regime of Saddam Hussein?

PENHAUL: The people on the streets are calling yes for the foundation of some kind of Islamic law, some government based on Islamic law. The major clerics that I've spoken to, however, are being very careful with the way that they phrase matters.

They've said that they're not seeking high political office. On the other hand, they do say that from their positions, they want to have a profound effect on the social and civil life of Iraq. One might say that those things equate to a strong hand in politics. And it's certain that over the next -- the coming days here in Karbala, the cleric who wins the masses over here will have a profound effect on the shape of Iraq's political future -- Aaron.

AARON BROWN: Karl, thank you. Karl Penhaul in Karbala.

It is a new day there, too.

Well as demonstrations in Iraq may be new for that country at least over the last generation or so, but they're part of the daily landscape in countries like Israel and on the West Bank and in Gaza. Part of that landscape, too, has been the chairman of the Palestinian Authority, Yasser Arafat. Now he is on his way out more or less. And a new man is poised to take over to try and negotiate peace. It was supposed to be relatively easy.

But fading out gracefully, at least giving up power, is not in anyone's make up in the Middle East.

We go back to Kelly Wallace in Jerusalem -- Kelly?

WALLACE: Aaron, this is a struggle over power involving two very large personalities: Yasser Arafat and the man he appointed prime minister, Mahmoud Abbas, widely known as Abu Mazen.

And if Abu Mazen and Yasser Arafat do not settle this dispute by Wednesday, the much promised roadmap for Middle East peace might not be released any time soon.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): The two men who once warmly embraced are now said to be locked in a power struggle with a Wednesday deadline fast approaching. That is when Palestinian Prime Minister Desigen (ph) Abu Mazen is required by law to put a cabinet together or step down as prime minister.

GILASSAN KHATIB, PALESTINIAN MINISTER: My information is that Abu Mazen is making significant progress and I expect that he is going to be able to present a cabinet before the end of the deadline.

WALLACE: Abu Mazen stormed out of a meeting with Palestinian President Yasser Arafat Saturday night, threatening to resign if Arafat did not approve his cabinet selections, according to Palestinian sources.

The major dispute centers on who will be head of security for the new government. Palestinians on the street signal their patience is wearing thin.

UNIDENTIFIED MALE: We need to hurry up and get things going with Abumazin or somebody else. And so, we could rest and we could sit down and start building up their Palestinian economy.

WALLACE: The states extend far beyond the two men, because the Americans and the British have made Abu Mazen's cabinet a condition for the publication of a so-called roadmap for Middle East peace.

SAEB ERAKAT, PALESTINIAN CHIEF NEGOTIATOR: A bigger picture is their engagement of the peace process. The bigger picture is then production of the roadmap. And this means that Abu Mazen must succeed.

WALLACE: To succeed, Abu Mazen must have enough power to be viewed as credible by Israel and the United States, who want to see Arafat sidelined without losing the trust of Arafat and the support of the Palestinian parliament, which must also approve the cabinet.

(END VIDEOTAPE)

WALLACE: Brinksmanship politics is how one Palestinian source described it. With Yasser Arafat said to be already looking around for other candidates for prime minister. But many believing after this tug of war Abumazin will get the cabinet he wants and will remain in his current job -- Aaron.

AARON BROWN: And he'll get the cabinet he wants, including the man to run the security apparatus, a man who's generally at least in the scheme of things over there, seen favorably by the United States?

WALLACE: Seen favorably the United States and the Israelis. We're talking about a man by the name of Mohammed Dahlan. He used to head up security for the Palestinians in the Gaza Strip. It's not clear, Aaron, if a compromise will be reached that might mean that Dahlan won't exactly have the title of interior minister. Perhaps he could have a different title, but still have some security powers. People we are talking to saying that Abumazin is going to hold firm over Mohammed Dahlan. But again, we will wait to see if this can be worked out before that Wednesday deadline -- Aaron.

AARON BROWN: Kelly, thank you. Kelly Wallace in Jerusalem.

Ahead on NEWSNIGHT, the rest of the day's news, beginning with the Laci Peterson case, as her husband Scott appears in court to face double murder charges, potential capital case.

And later, the SARS effect, empty hotels, restaurants and airplanes. We'll give you a look at Singapore these days. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

AARON BROWN: More now on the Laci Peterson story. We saw earlier the tragedy of the case. A family that is filled with rage and heartbreak.

Rusty Dornin has been following the legal drama. Scott Peterson charged in the murder of his wife and unborn son -- Rusty?

DORNIN: Well, Aaron, you know, this is one of those cases where the courtroom was very highly charged. People were wondering how the Peterson family and how Laci's parents and brother and sister would react to one another in the courtroom, and also to Scott coming in.

Before the proceedings started, Jackie Peterson, Scott's mother, got up and went over and made a point to hug Laci's mother, saying, "I'm sorry." That was a very poignant moment before the court proceeding began. Not long afterwards, Scott Peterson entered the courtroom, having shaved his goatee, still sporting a different hair color.

Of course, shackled and handcuffed, he sat down and answered the judge's questions. And also, when he gave his plea in a very loud, clear voice, he said "I am not guilty." Now very shortly after the arraignment, the Rocha family gave a heartwrenching press conference for the first time speaking out after the bodies had been identified. Sharon Rocha talked about a promise she made to her daughter.

(BEGIN VIDEO CLIP)

SHARON ROCHA, LACI'S MOTHER: Soon after Laci went missing, I made a promise to her that if she has been harmed, we will seek justice for her and Connor and make sure that that person responsible for their deaths will be punished.

I can only hope that the sound of Laci's voice begging for her life and begging for the life of her unborn child is heard over and over and over again the mind of that person every day for the rest of his life.

The person responsible should be held accountable and punished for the tragedy and devastation forced upon so many of us.

(END VIDEOCLIP)

DORNIN: Now you can see Scott Peterson's family leaving the courtroom. They went back inside the courthouse to speak to the attorneys. But throughout the last couple of days, they have been giving a number of interviews, talking about how they firmly back their son's innocence.

(BEGIN VIDEO CLIP)

LEE PETERSON, SCOTT'S FATHER: Can't see properly because he's locked up in this place here. Because you know, they made a rush to judgment because of all the media pressure, I believe and politics. And he's in there. He should not be. And we're going to find out who did it and...

(END VIDEO CLIP)

DORNIN: Now Scott Peterson will be back in court on -- excuse on May 6 for a bail hearing. And also on May 19th, for a pre-trial.

Now the D.A., Jim Brazleton, talked about that it might be a couple of weeks before they do decide whether they will pursue the death penalty in this case.

Meantime, Laci Peterson's family says they are now working on the funeral arrangements and have not yet announced a date for her -- the memorial -- Aaron.

AARON BROWN: Rusty, thank you. Rusty Dornin in Modesto, California.

More now on SARS and very lonely jobs these days in Asia. Travel agent with no tourists to book, a waitress with no patrons to serve, a hotel piano man with no one to listen to him play. One way to view the seismic impact of SARS on business, a look at how one big economy is coping, Singapore's economy from CNN's Andrew Brown.

(BEGIN VIDEOTAPE)

ANDREW BROWN, CNN CORRESPONDENT (voice-over): Wednesday evening at Singapore's Le Meridien, and the piano player's performing another solo, quite literally. He's just about the only person in the lobby. This downtown hotel has never experienced occupancy this low. Only 30 percent of rooms are sold. Breakeven point is around 50 percent. So it's no wonder the management's been cutting costs.

RUDOLF BORGESIUS, LE MERIDIEN GENERAL MGR.: We don't have any more new recruits, no overtime. We just ended a five day work week. Normally people work in Singapore six days in the hotel business. So it's five days. And with these measures, we should be able to cut down our losses.

ANDREW BROWN: It's the same story all over town. SARS has depressed tourism, leaving many hotels and retailers without customers.

UNIDENTIFIED MALE: Business is very bad.

UNIDENTIFIED MALE: It's down by mostly 80 percent.

ANDREW BROWN: The government's predicted SARS will shave a half to one percentage point off annual growth. The good news is analysts say they don't see Singapore's electronics manufacturers being strongly affected by SARS, since buyers will continue to source chips and other components from here.

The bad news is these manufacturers are mainly supplying U.S. tech companies, which according to some experts, are still in a fragile state.

V. ANANTHA-NAGESWARAN, CREDIT SUISSE PRIVATE BANKING: Despite the (unintelligible) that we have seen the last couple of days in Microsoft or Intel, both top line and bottom line growth still looks very sluggish, to put it mildly.

ANDREW BROWN: While some Singaporean businesses may be racing into the red, Lee Juan Tsao is upbeat about his prospect. Each day, he's paying 12 percent less for the taxi he drives around town, part of a special SARS discount.

LEE JUAN TSAO, TAXI DRIVER: Our company reduced our rent. You see, yes, this is how companies look into the welfare of taxi drivers.

BROWN: Mr. Lee regularly disinfects his taxi, but it'll take more than a clean machine to get the Singapore economy firing on all cylinders again.

With new SARS cases reported each day, many people are staying away from bars and restaurants to reduce the risk of infection. Apparently they're being productive in other ways.

WEI SIANG YU, SINGAPOREAN DOCTOR: With the couples, the husband and wife are spending more time together. I think it's about time that for pro-creation.

ANDREW BROWN: Love in the time of SARS is blossoming.

Andrew Brown, CNN, Singapore.

(END VIDEOTAPE)

AARON BROWN: Coming up on NEWSNIGHT, rebuilding Iraq and questions of what companies are getting the contracts to do it and why. We'll update the headlines, too. This is NEWSNIGHT on CNN.

(COMMERCIAL BREAK)

(NEWSBREAK)

(COMMERCIAL BREAK)

AARON BROWN: It's a given that rebuilding Iraq will be a huge job both in terms of energy and money. The private company that stands to benefit the most at the outset, at least, is not very well known to most Americans but the war has brought the Bechtel Corporation to the forefront and energized an old debate about just who gets the inside track when more than a half a billion dollars is at stake.

Here's CNN's Judy Woodruff.

(BEGIN VIDEOTAPE)

JUDY WOODRUFF, CNN ANCHOR (voice-over): The new man in charge arrived in Baghdad Monday promising to restore order and services to war-torn Iraq. Retired General Jay Garner is charged with rebuilding a country from the ground up, making sure the water is safe to drink and roads and bridges are ready for traffic again.

He'll be leaning heavily on Bechtel, a San Francisco based company which last week won the largest contract so far in the reconstruction effort. The payout could be worth up to $680 million over 18 months. Bechtel was selected from among a handful of companies the Bush administration specifically invited to submit bids for major construction projects in post-war Iraq.

ANDREW NATSIOS, ADMINISTRATOR, USAID: That collapsed the process which normally takes six months to two months because the president said I want all of this in place by the time peace comes to the country so we can begin the reconstruction process immediately.

WOODRUFF: But the expedited contracting process has sparked concern on Capitol Hill. Some Democratic Congress members have complained the bidding was conducted in secret, noting that only select companies were allowed to compete. Others cite Bechtel's history of hefty campaign contributions, pointing out that several former Reagan administration officials, including former Defense Secretary Caspar Weinberger have served on its board of directors.

LARRY NOBLE, CENTER FOR RESPONSIVE POLITICS: The question that has to be asked of the administration is why did you need to do this where you invited six companies to bid? You did not open it up and that you did this under secrecy and basically what you see is a company with political ties, with political contributions getting the bulk of the contracts.

WOODRUFF: Reagan's Secretary of State George Schultz currently sits on the Bechtel board. He insists the contracting process was conducted in plain sight.

GEORGE SCHULTZ, FORMER SECRETARY OF STATE: I'm not a part of this process. I don't have a managerial role in Bechtel but, as I understand it, Bechtel was invited to bid, did so. The process is transparent, competitive, will continue to be so and that's the way it should proceed.

WOODRUFF: There's also been concern from British and Arab officials that only American companies were considered for the major reconstruction contracts. Bechtel has promised to open its subcontracting process to anyone who wants to apply.

Judy Woodruff, CNN, reporting.

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AARON BROWN: While this process is not nearly smart enough nor transparent enough for some members of Congress, as Judy indicated, in the Senate a bill has been introduced to shed light on a process that could eventually cost tens of billions of your dollars. Its sponsors include Republican Senator Susan Collins of Maine and Democrat Ron Wyden of Oregon. We talked to Senator Wyden earlier tonight.

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AARON BROWN: Senator, take 30 seconds or so and talk about what it is you hope to accomplish with the bill that you and other introduced?

SEN. RON WYDEN (D), OREGON: Well, at a time when taxpayer money is very scarce for schools and healthcare and basic services, what we want to do is make sure that every dollar that is used to reconstruct Iraq is spent efficiently. And so, our legislation calls for public disclosure of any contract that goes to rebuild Iraq that's non- competitive.

AARON BROWN: Is it your belief that in the contracts that have been awarded so far that there hasn't been enough disclosure? What is it you want to know that you don't yet know?

WYDEN: Well, information is very skimpy to date. I think it's fair to say the public is really in the dark about the contracts that have been let thus far. What we do know is that it seems that some very powerful firms, influential firms, have gotten contracts and that just reaffirms in my mind how important it is that these contracts be let in the sunshine and not behind a smokescreen.

AARON BROWN: The administration has made the argument that there is simply no time to go through the formal bidding process. Do you agree at least in principle that these contracts need to be let quickly?

WYDEN: There's no question that they need to be let quickly but that's not inconsistent with a full and open process if it's handled properly. So, what we say is that if they're not going to do it in the open at least the public's got a right to know as to why that's the case.

What I heard at home in my community meetings this past week is people want to know how these companies are being picked. They want to know how the process works and they want to know whether this is the best use of scarce taxpayer money. By the way, with so many people out of work in this country we've met a lot of companies and a lot of workers who would like to have a chance to get this work.

AARON BROWN: Again, I think the administration argument is that there are very few companies that are really qualified to handle projects of this magnitude. Is that overstating the situation?

WYDEN: If that's the case then they ought to tell the public why it is the case. I can tell you I heard from a lot of companies at home that, in particular, they'd be interested in being subcontractors. Our hope is that maybe at some point some Oregon companies, some other companies around the country will get a chance to compete.

But at this point, the public really doesn't have that kind of information and I've always felt that sunlight is the best disinfectant and that's what we really need here.

AARON BROWN: Do you think there will be opposition to the bill?

WYDEN: Well, I think it's pretty hard for somebody to stand up and defend secrecy and a non-competitive bidding process but what usually happens is that when there's opposition to something like this very often that opposition is expressed in secret.

So, what we're trying to do with our bipartisan bill, the chair of the relevant committee is Susan Collins of Maine, we're going to try to build a bipartisan juggernaut for this legislation and make it a priority for Congress when we come back.

And it seems to me when you're talking about spending at least $25 billion and possible $100 billion at a time when seniors can't afford medicine and a lot of people are out of work, we ought to spend this money wisely.

AARON BROWN: How much of that $100 billion, we hear that figure a lot, how much of that $100 billion do you expect to be taxpayers dollars?

WYDEN: At this point, again with information so skimpy nobody can really answer that precisely. Of course, the hope is that much of the reconstruction will be paid for with funds generated by Iraqi oil. But I think it's fair to say that the conservative estimates are with respect to taxpayer money for reconstructing Iraq we're talking $25 billion and some of the estimates go upward of $100 billion.

AARON BROWN: And that money, no matter how these contracts are let, that money has to be appropriated by the Congress doesn't it?

WYDEN: The money certainly would have to be appropriated by the Congress but, again, if the Congress is kept in the dark about these contracts and certainly a troubling pattern has emerged right now, then the Congress has a responsibility to change that.

I can tell you what I heard again and again over this past week is that the American people are generous and kind but they are hurting. You've got folks out of work, local communities having difficulty paying for basic services, and they want to be very sure that this money is spent efficiently at a time when there's so much agony here in country.

AARON BROWN: Well, Senator, we will follow the path of the bill. It will be interesting to see if it gets all the hearings and all the votes and we appreciate your time tonight.

WYDEN: Thanks for having me.

AARON BROWN: Thank you, Senator.

(END VIDEOTAPE)

AARON BROWN: Oregon Senator Ron Wyden.

Ahead on NEWSNIGHT we'll take a look at tomorrow's news for goodness sakes, tomorrow morning's papers from around the country and around the world.

But a break comes first. This is NEWSNIGHT on CNN.

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AARON BROWN: Time to check morning papers from around the country and around the world. We begin, for no particular reason except that it's on top, in Dallas, "The Dallas Morning News. A couple of Iraq stories, one a nice job of localizing the story. Southern Baptists plan to send evangelists to Iraq to do some conversion work, some proselytizing work, so they put that on the front page.

And the other big front page story that caught our eye, "Second Union aiming to hold the new vote." American Airlines is based in Dallas and there was this terrible flap, you know, Americans asking employees to take significant wage cuts and then just as they were voting on it, it came out that management, senior management, was promised some hefty bonuses and son of a gun if that didn't annoy the workers some so there was an apology from the head of United -- or rather, American. And that same story, "American's Chief apologizes as unions consider new vote on deal" is also a big story, front page story in "The Miami Herald" which their main story on Iraq is "Rebuilding moves forward." And they also get into Super Bowl in 2007, so they put that on the front page also, at least they think they are.

"St. Louis Post Dispatch" on General Garner's visit today, "General gets chilly reception" is the headline. There we go. Oops, there we don't go. "General gets chilly reception" is their take on the story and the American Airlines story is a front page story in the St. Louis paper too. There's probably a good reason for that but I don't know what it is, can't know everything.

The "Herald Journal" of Spartanburg, South Carolina, big story is the city manager quit, "City manager up and quit" for personal reasons she said. The other big story, at least the one that caught our eye, I mean the retired general is there in their main Iraq story, but "Upstate dad loses son in war." A local man lost his child, his son in the war and that's worthy of the front page in any place.

"The Cincinnati Enquirer," -- how are we doing on time? Thirty okay. "Pastor rebuked in gay marriage case." A Presbyterian pastor was found guilty of marrying gays but received the lightest possible punishment and I'm not sure what that is but that's a big story in "The Cincinnati Enquirer," and that's a quick look at the morning papers.

If you're following politics these days, you won't necessarily find this story in a newspaper unless it's "The Des Moines Register" or perhaps the Manchester newspaper in New Hampshire. It's been a very lonely road for Democrats who are running for the presidential nomination. Everyone's been focusing on the war, almost nobody focusing on them. Most of their speeches and debates have been pretty much ignored.

So, in the spirit of catching up, and thorough reporting of course, CNN's Candy Crowley tonight has a very early, and we do mean very early, report card.

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CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): With the pre-war of the war and now the post-war, you have not heard much lately from the '04 candidates, which is not altogether a bad thing.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: But if anybody here is asking the big question, can a man be president of the United States without a prostate? I say to you why not? We've had a number of Republicans who have been president without a heart, without a brain, why not?

CROWLEY: That's presidential hopeful John Kerry practicing his humor.

This is presidential hopeful Al Sharpton promoting his alternative resume.

REV. AL SHARPTON, PRESIDENTIAL CANDIDATE: I know unquestionably, unequivocally I've been to jail more times than anybody running for president of the United States.

CROWLEY: And so, it went at the Building Trade Union meeting earlier this month. There had been a couple of those, come one, come all events recently. Topics range from war to childhood obesity. There were some disagreements on the margins of policy and one certainty.

UNIDENTIFIED FEMALE: A minute or less, Senator Braun.

CAROL MOSELEY BRAUN, PRESIDENTIAL CANDIDATE: Thank you very much, Judy. I was pointing out I went under a minute on my opening or close to it, in any event...

CROWLEY: An hour divided by nine doesn't give you much time to talk.

SEN. JOE LIEBERMAN (D-CT), PRESIDENTIAL CANDIATE: Is this the bottom of the ninth as far as presidential candidates go?

CROWLEY: Apropos to nothing except maybe the hectic pace of the campaign trail, is that a laundry tag on Joe Lieberman's shirt cuff? That's Senator Bob Graham, AKA Candidate #9, on his maiden voyage to New Hampshire just last week. Late into the game because of major heart surgery, Graham spent very little money this quarter but did manage to raise over $1 million, most of it out of Florida.

Honors in the first quarter of the money chase went to John Edwards who leaned heavily on fellow lawyers to beat out John Kerry for most money raised. Kerry spent the most, although Lieberman spent a greater percentage of what he raised than anyone else. And, Gary Hart, he's still giving speeches like he's going to run for president but hasn't said publicly that he will. That would make ten candidates, and if it keeps going like this, pretty soon we're going to need a deck of cards to keep them all straight. So far, nobody seems to have an ace in the hole.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

AARON BROWN: We'll wrap up Monday night on NEWSNIGHT in just a moment.

(COMMERCIAL BREAK)

AARON BROWN: Earlier today, Laci Peterson's mom tried to give us a sense of the horror she and her family have lived over the last four months.

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SHARON ROCHA, MOTHER OF LACI PETERSON: On December 24, 2002, shortly after 5:15 p.m., I received a phone call and heard the devastating words that forever changed my life, Laci's missing. I knew in my heart that something terrible had happened to my daughter and my grandson. My world collapsed around me.

Since receiving that phone call we have been living a terrible nightmare. The search for Laci began that night. The questions were always there. What happened to Laci? Where is she? Is she safe and who took her from me?

I made a plea to the person or persons who took her to please, please let her go and send her home to us. We heard nothing. As the days passed, I made more pleas to take her to a hospital or fire or police station or tell us where she is so that we can come to her and bring her and her baby home safely and still we heard nothing.

We searched and searched and searched and still no Laci. I love my daughter so much. I miss her every minute of every day. My heart aches for her and Connor. Without them there is a huge void in my life. I literally get sick to my stomach when I allow myself to think about what may have happened to them. No parent should ever have to think about the way their child was murdered.

In my mind I keep hearing Laci say to me, mom please find me and Connor and bring us home. I'm scared. Please don't leave us out here all alone. I want to come home. Please don't stop looking for us. Except for that Laci and Connor can no longer wait to be found so last week they came to us.

Laci and Connor left us on Christmas Eve. I know that God has been watching over them. He sent them back to us on Good Friday. Now we can bring them home where they belong. Laci and her unborn child did not deserve to die. They certainly did not deserve to be dumped in the bay and sent to a watery grave as though their lives were meaningless.

Laci meant the world to me. She was my only daughter. She was my best friend. We miss her beautiful smile, her laughter, her love, and her kind and loving ways. I miss seeing her, talking to her and hugging her. We have been deprived of meeting and knowing Laci's son, our grandson, and nephew. We will miss them and mourn them for the rest of our lives.

Soon after Laci went missing, I made a promise to her, that if she's been harmed we will seek justice for her and Connor and make sure that that person responsible for their deaths will be punished.

I can only hope that the sound of Laci's voice begging for her life and begging for the life of her unborn child is heard over and over and over again in the mind of that person every day for the rest of his life. The person responsible should be held accountable and punished for the tragedy and devastation forced upon so many of us.

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AARON BROWN: We'll see you tomorrow. Goodnight for all of us at NEWSNIGHT. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com





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