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Iran Testing Missiles and Patience of U.S. and Israel; Polygamist Sect Leader Warren Jeffs Rushed to Vegas Hospital; Some FEMA Trailers Making Katrina Victims Sick; A Company Called ZipCar Rents Cars by the Hour

Aired July 09, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning again, everyone. You're informed with CNN.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.

Developments keep coming in to the CNN NEWSROOM, Wednesday, the 9th day of July.

Here's what's on the rundown.

Iran testing missiles and the patience of the U.S. and Israel. Reaction from Jerusalem, the White House and the campaign trail.

HARRIS: FEMA trailers filled with noxious fumes. Who's to blame? Your lawmakers asking that question this hour.

COLLINS: Training for terror. Federal agents practice for the real thing. A CNN Special Investigations Unit report in the NEWSROOM.

Want to take you directly to South Park, Pennsylvania, where we are awaiting Senator John McCain coming to the podium there. He is touring the research lab at CONSOL Energy Company in South Park. He's going to be talking about the economy, energy independence and, of course, having some reaction to Iran, its test-firing of those missiles. Going to be talking with reporters and that crowd there coming up shortly.

We'll bring it to you live.

HARRIS: Rattling nerves and sabers. Iran's state television reports that it has test-fired nine new missiles. It is the latest salvo in the rising international tensions over Iran's nuclear ambitions.

(BEGIN VIDEO CLIP)

GEN. HOSSEIN SALAMI, REVOLUTIONARY GUARDS COMMANDER (through translator): We want to tell the world that those who conduct their foreign policy by using the language of threats against Iran have to know that our finger is always on the trigger and we have hundreds, even thousands of missiles, ready to be fired against predetermined targets. We will chase the enemies on the ground and in the sky, and we are able to react strongly to enemy threats in the shortest possible time.

(END VIDEO CLIP)

HARRIS: Now, one of the missiles fired today reportedly has a range of 1,250 miles. That puts Israel within striking distance. Other missile types fired today have ranges of 105 and 250 miles.

COLLINS: So what's the reaction here in the United States to all of this?

CNN State Department Correspondent Zain Verge is in Washington looking for answers to this.

Good morning once again, Zain.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Good morning, Heidi.

The U.S. is real swiftly condemning Iran. Just a short while ago, State Department spokesman Sean McCormack says that the tests real underline the threat that the world is trying to deal with. He added, took, that the U.S. is going to protect its interests in the region and stand by its friends and allies.

Now, right now, Heidi, the State Department's top man on Iran diplomacy is speaking to lawmakers on the Hill, and those lawmakers have been slamming U.S. policy toward Iran. Here's what one had to say just a short while ago.

(BEGIN VIDEO CLIP)

REP. HOWARD BERMAN (D), FOREIGN AFFAIRS CHAIRMAN: Administration policy towards Iran has been a failure, veering from one approach to the other. Iran has made continuous progress in its nuclear program throughout the Bush years, international support for sanctions has not gathered much steam, and our allies still do far less than they should.

It's time for us to give Iran the -- give the Iran problem the priority it deserves and the creative policy it requires before it is too late.

(END VIDEO CLIP)

VERJEE: Secretary of State Condoleezza Rice has said that she would sit down and meet directly with the Iranians any time, any place if they suspend enriching uranium. That's important, because you need uranium to make a nuclear bomb.

But there is a deal on the table for Iran to negotiate and suspend uranium enrichment. But so far they haven't done it -- Heidi.

COLLINS: Yes. And that's been their stance all along.

What's Iran's message to the world here? VERJEE: Well, with these missile tests, Iran seems to be sending basically a warning signal to Israel and to the U.S. Many are saying that it's really a direct reaction to Israeli military exercises that Iran really saw as a practice run for attacking it. Iran's worried that Israel could attack them and then drag the U.S. into a possible conflict.

And the other thing, too, Heidi is that for a really long time, Iran described Israeli and U.S. rhetoric really as psychological warfare. And this missile test is kind of like a shot back at Washington and Tel Aviv, where Iran is saying, OK, two can play that game -- Heidi.

COLLINS: All right. CNN State Department Correspondent Zain Verjee.

Thank you, Zain.

HARRIS: So let's get reaction from within the potential strike zone of those missiles.

CNN's Ben Wedeman joins us live from Jerusalem.

And Ben, I'm just curious, any official Israeli reaction yet?

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Yes, Tony, we do have reaction from Israel. Israel, of course, is one of countries that is most concerned about Iran's missile programs, as well as its alleged nuclear program.

In fact, we have a statement from Mark Regev (ph), who is a spokesman from the Israeli prime minister's office. He says the following: "Israel seeks neither conflict nor hostilities with Iran, but the Iranian nuclear program and the Iranian ballistics missile program must be of concern for the entire international community."

And this has really, Tony, been Israel's position all along, that even though it is concerned because it is often the brunt of Iranian rhetoric, that this is a problem that concerns not just Israel but the entire world community -- Tony.

HARRIS: And Ben, I have to ask you, did Israel expect some kind of Iranian response to its military maneuvers last month?

WEDEMAN: Yes, that maneuver on the 2nd of June was a fairly large Israeli air exercise which many believed simulated a possible air strike on Iran. And of course, at the time the Iranians condemned the Israeli exercise, it's hard to say whether this missile test today is in response to that or it's in response to a variety of statements from American and Israeli officials that the Iranians perceive as threatening -- Tony.

HARRIS: Ben Wedeman for us in Jerusalem.

Ben, thank you. COLLINS: Here is a closer look now at the long-range missile reportedly fired this morning by Iran. It's a new version of the Shahab, which means meteor or shooting star in the Iranian language Farsi. It can carry a one-ton conventional warhead. The missile is believed to have been updated with Russian and Chinese help.

HARRIS: We are following breaking developments this hour out of the Darfur region of Sudan. A U.N. peace keeper is dead and 19 others hurt in an armed militia attack. Six other U.N. peacekeepers are missing.

The ambush happened today in northern Darfur. The joint U.N. and African Union force took over peacekeeping duties in the troubled region earlier this year. The force includes about 9,000 soldiers and police officers.

A deadly shoot out near the U.S. Consulate in Istanbul, Turkey. According to the city's governor, three police officers and three attackers were killed in a gun battle. It began when gunmen pulled up in a car and opened fire at a police checkpoint outside the consulate.

The police fired back, bullets flying for up to five minutes. No Americans or consulate employees were hurt.

HARRIS: Polygamist sect leader Warren Jeffs rushed from jail to a Las Vegas hospital.

Our Chris Lawrence is there now.

And Chris, any update on Jeffs' condition?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Tony, right now we are still waiting to hear from the doctors who are actually treating Warren Jeffs, but our sources are telling us that it is a "serious situation." And we know that Jeffs' health was poor enough that armed guards had to take him out of his jail cell in Arizona and rush him by helicopter about 100 miles to the hospital right here behind me.

We're also told that although he is being treated at this hospital, technically he is not a patient here, that he is still under the jurisdiction and armed guard of those Arizona authorities. And we've seen at least one of those Arizona sheriff's cars here at the hospital so far this morning.

Jeffs has had some health problems over the past couple of years. During his time in jail, according to court documents, while he was awaiting trial, at one point he refused food and water for a significant amount of time, had to be taken to an infirmary. Later, a few weeks after that, he actually tried to kill himself while he was in jail. And while he was put on suicide watch after that, he was observed banging himself into a wall and banging his head into a wall repeatedly.

Now, Jeffs had been convicted already and serving 10 years to life for two convictions. He was awaiting trial on several more charges in that Arizona jail, and right now, again, he is in the hospital, he is being treated. And we hope to get even more information as the morning goes on -- Tony.

HARRIS: OK. Chris Lawrence for us in Las Vegas.

Chris, thank you.

COLLINS: New evacuations now in northern California. Around 26,000 residents in Paradise, California, were told to leave. Wildfires are moving closer to their doorstep.

And next door in Concow, 40 homes were destroyed by a fast-moving fire. It was sparked by embers from another nearby wildfire.

There are about 330 active fires burning in the state right now, from Santa Barbara County in the South, all the way up near the Oregon border. Cal Fire officials say they have more than 20,000 people fighting those fires.

(WEATHER REPORT)

COLLINS: Want to quickly get you to South Park, Pennsylvania, where we are listening to John McCain now on the campaign trail.

(JOINED IN PROGRESS)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: And so what's being done here and in many other places around the country is vital to the energy future of the United States of America. Some remarkable technology is being developed here, ranging from a broad variety of uses of coal, but most importantly, the reductions to the CO2 that are causing climate change in America and the world.

I'd be glad to talk about any other issue with you. We are going from here to Ohio. I have a town hall meeting. And we've been talking all week about the economy and the need to get our economy back on track, and our -- and obviously energy independence and the price of gasoline is an environmental national security and an economic challenge of the greatest magnitude. And we're talking about the ways to become energy independent, ways to keep taxes low, and to get America's economy going again, including keeping people in their homes and giving them affordable and available health care.

So with that, I would be glad to talk about any issues with you, including the Iranian missile test this morning that has been reported this morning.

QUESTION: Senator McCain, you have criticized Senator Obama on the FISA issue, and yet he's on the same side as you are. He's actually in Washington voting on that bill today.

Is this an issue that you can really make a distinction between yourself and your opponent?

MCCAIN: Senator Obama was unalterably opposed to the allowing immunity or providing immunity to those telecommunications corporations that at the request of the federal government, cooperated in helping us try to monitor and intercept the communications of terrorist organizations. My understanding is that he is still opposed to providing that immunity.

I strongly support it. The new kinds of telecommunications and the advances that have been made in recent years clearly dictate that we have to have the ability to monitor communications between terrorist organizations and individuals who want to destroy America and everything we stand for.

So Senator Obama and I are still in strong disagreement on the issue of immunity for the telecommunications corporations. He was opposed to FISA in the past and opposed to that, and now he is supporting it. Not the first change in position.

QUESTION: Senator, will the missile test signal a change in U.S. policy? Will that signal a need to change U.S. policy?

MCCAIN: The missile test indicates a number of things. It means that Iran continues to threaten the security of their neighbors in the region.

The president of Iran, President Ahmadinejad, continues to state his nation's dedication to the destruction of the state of Israel. They're continuing mounting evidence that Iran is pursuing the acquisition of nuclear weapons. I am convinced that our European allies and friends are ready to impose significant, impactful and meaningful sanctions on the Iranians, especially financial, including trade and including international financial systems, and that those sanctions can be effective in modifying Iranian behavior.

It's my understanding that this missile test was conducted by the Iranian Revolutionary Guard. This is the same organization that I voted to condemn as a terrorist organization when an amendment was on the floor of the United States Senate.

Senator Obama refused to vote, called it provocative, called it a provocative step. The fact is, this is a terrorist organization and should have been branded as such.

I am proud at that -- I am pleased that President Sarkozy, Prime Minister Brown, Chancellor Merkel and other European leaders have given every indication that they are prepared to join with us in imposing meaningful, impactful sanctions on the Iranians. Their economy is not strong because they've got a bad government, but I think we can have a significant effect joining together.

And unfortunately, the United Nations Security Council is unable to impose those meaningful sanctions because of Russian and Chinese resistance in doing so. I have long ago proposed a "league of democracies" that would join together and act not only in this issues, but in other actions to address the issue of situations such as the Iranian acquisition of nuclear weapons.

QUESTION: Senator, Senator Obama, when asked about these tests today, described them essentially as a failure of diplomacy. He said that what was needed was to open up channels of communication to avoid provocation, and giving the Iranians strong incentives to change their behavior. How far does that go to solve the problem, do you think?

MCCAIN: We have lines of communications with the Iranians, and there are many. We have urged the Iranians under many different circumstances, including different packages of incentives, joined in by our European allies, to modify Iranian behavior as well.

Their behavior has obviously not changed and their behavior is more and more threatening to the existence of the state of Israel. But far more as important as that, leading to a conflict in the Middle East which could draw the United States of America into that conflict and put brave young Americans' lives at risk.

So, channels of communication have been open, and they will remain open. But the time has now come for effective sanctions on Iran which will then -- I believe can have a modifying effect on their very aggressive behavior not only rhetorically, but in their pursuit of nuclear weapons, as well as this latest missile test.

So lines of communication are fine. Action is what's necessary.

Yes, sir?

QUESTION: Jeff Mason (ph) from Reuters, Senator.

Just a follow-up question on that. What role does diplomacy have or should it have on this issue? And two, how do you keep sanctions from hurting the people of Iran when you're trying to direct them towards the government?

MCCAIN: Well, diplomacy plays a key role. We have -- there have been negotiations, there have been discussions, there has been packages of incentives offered to the Iranians which have been rejected time after time.

There has been intense negotiations and diplomacy, and there continues to be a role for it. But history shows us that when nations are embarked on paths that can jeopardize the security of the region and the world, then other actions besides diplomacy has to be contemplated and taken. And that's why meaningful and impactful sanctions are called for at this time.

And again, our European allies are ready to do that. President Sarkozy has indicated that. Prime Minister Brown has indicated that. Chancellor Merkel and others have clearly indicated that they are ready to act. But it's time for action, and it's time to make the Iranians understand that this kind of violation of international treaties, this kind of threatening of their neighbors, this kind of continued military activity is not without cost. And those costs I think can be impactful upon them.

Go ahead. Can I just do one -- yes?

QUESTION: Senator McCain, on Monday your campaign put out a policy paper talking about your desire to balance the budget at the end of a first term in office. Can you talk about how you're going to achieve that?

MCCAIN: Sure. Through revenue and economic growth, by keeping taxes low, by reforming Social Security and Medicare, by making sure that we provide jobs and opportunities for all Americans, by free trade, by increasing economic activity, by creating jobs. Technology here, right here at CONSOL, that's being developed here is capable of creating and will create hundreds of thousands of jobs as we adopt clean coal technology.

Seven hundred thousand jobs can be created with the construction of 45 new nuclear power plants. By revenue, by increasing revenue, by keeping taxes low, and stimulating our economy. And I am convinced that we can do that.

Our economic plan has been supported by 300 economists and five Nobel laureates. Now, they have supported our economic plan.

There are those who don't agree with it or don't believe it, who don't believe our economy can improve, who don't believe that ingenuity and entrepreneurship of Americans can be unleashed. I do.

QUESTION: (OFF-MIKE)

MCCAIN: We have go. Thank you very much. Thank you very much.

COLLINS: OK. Well, it looks like the rain is coming down directly on him, but I can't quite tell from the vantage point there.

But anyway, Senator John McCain making a quick exit there from South Park, Pittsburgh. This is a suburb of -- excuse me, South Park, Pennsylvania. It's a suburb of Pittsburgh.

Talking, in fact, mostly about Iran. This was supposed to be about energy and so forth and the economy today, but ended up talking, as we sort of expected, mostly about Iran and those missiles that they test-fired early this morning.

So we'll stay on top of that for you.

Meanwhile, preparing for the unexpected. Federal agents now getting critical training to handle urban attacks.

(COMMERCIAL BREAK)

COLLINS: Training for a terror attack. Federal agents now gaining critical experience by blowing stuff up.

More now from CNN's Special Investigations Unit correspondent Drew Griffin.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT (voice over): Keep your eye on the center window of what appears to be a generic suburban apartment. It's about to become the center of a homeland security threat. It's just a drill, but ATF Special Agent Jason Harrell makes it look as real as possible because the agents he's about to bring into this training crime scene may soon be investigating a real one.

JASON HARRELL, ATF: This scene is simulated where you have a subject who's actually manufacturing homemade explosives. In this case, he was using (INAUDIBLE) nitrate.

GRIFFIN (on camera): (INAUDIBLE) nitrate, that's 93...

(CROSSTALK)

HARRELL: Absolutely.

GRIFFIN (voice over): The mannequin, the wounds, the scene, right down to the residue, simulates a terrorist cell building bombs somewhere in the United States.

(on camera): God forbid, Jason, but this is a situation that we could eventually see in the United States, a bomber in an apartment just like this, putting together a device which he intends to use to kill us.

HARRELL: You're absolutely correct.

GRIFFIN (voice over): In this abandoned complex, two other apartments have been blown up, all part of a massive training program the ATF is conducting. To make sure when and if the terror threat arrives, its agents will be ready.

Scott Sweetow is the agent in charge.

SCOTT SWEETOW, ATF: You've got like the confluence of two terrible rivers. You've got the information superhighway, where information that was previously restricted to bomb technicians, people who are explosive chemists, explosives specialists, like myself, they could get that information, but you had to work for it. That information is now available to anyone, and it's available a lot of times in a multimedia format. So it's very easy. The other thing that you've got are an almost torrential stream of people that want to kill us.

GRIFFIN: To keep ahead of the dangerous game, the ATF is sending its agents to the heart of the global war on terror -- Iraq, Afghanistan, where terrorist bombs, suicide devices and IEDs are a regular recurrence.

JEFF GROH, ATF: You have the Eric Robert Rudolph, you have the Timothy McVeighs that are born here. But we also have the threat from outside so we have to be very cognizant of that and look to the different types of devices and things that may be used outside the United States so that we can understand those if they could do come to the United States.

GRIFFIN: One key, they say, is keeping local cops in the United States trained, not only to detect and dispose of bombs, but, more importantly, recognize the warning signs or after-effects of a true terrorist bomb factory.

Jason Harrell says a trained eye is the first line of defense to keep bombs from getting out on the street.

HARRELL: What are the key things I need to pick out from this scene that are going to leave me to believe that this was an explosive device?

GRIFFIN: So far, we've been lucky. The terrorist bombings many had expected to happen in the U.S. haven't -- yet. The ATF says it hopes it never will, but hoping is not enough.

(END VIDEOTAPE)

COLLINS: And CNN's Drew Griffin is joining us now.

Boy, I don't know, Drew, but it seems like the ATF is really the perfect organization to bring in.

GRIFFIN: Yes. They usually investigate bombs after the fact, but they are the perfect agents to be the conduit between what's happening in terrorist areas like Iraq, Afghanistan, and making sure that local law enforcement knows what's going on, knows the trends of these bombs, where they can be found, how they are made, so that in the course of regular police work they can recognize signs. And it's all about recognizing those early signs of a terrorist cell that leads to a successful breakup before an attack.

COLLINS: Well, yes. It seems like after all of the experience that they have doing what they do, that they would be the experts on this. I wonder, is that why they're sending ATF agents into war zones like Iraq and Afghanistan, too?

GRIFFIN: That is exactly right. It's all about -- well, it's about a change of policy over in Iraq and Afghanistan, because our soldiers need their expertise, and then they gather expertise and bring it back here to the home front so that beyond Eric Rudolph -- I mean, we have our domestic bombers. We even have a lot of teenage kids that are out there experimenting. But they want to make sure that if there are terrorist cells in the United States building bombs, that there are experts in the United States who will recognize that. And that's the key.

COLLINS: All right. Yes, very good.

Drew Griffin from our Special Investigations Unit.

Thank you.

GRIFFIN: Thanks.

HARRIS: FEMA under fire again. Trailers filled with a chemical that can cause cancer. Congress wants answered today.

A live report in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: It is 11:30 eastern time. Welcome back, everybody. I'm Heidi Collins.

HARRIS: I'm Tony Harris. FEMA foul-ups post-Katrina. Congress is asking questions this hour about FEMA trailers tainted with formaldehyde. CNN's Sean Callebs is following the story from New Orleans. Sean, what have you heard so far?

SEAN CALLEBS, CNN CORRESPONDENT: Well it's interesting because clearly everybody is waiting to hear from the heads of the four manufacturers of trailers allegedly affecting people down here in the Gulf Coast. But so far in the hearing, we should have a live picture, it has been dominated by a doctor with the CDC, Dr. Michael McGeehan. Basically, he's been talking about how much is too much when it comes to exposure to formaldehyde.

Formaldehyde is a product that's used in making wood and plastics, basically everything you find in a travel trailer. Now, republicans on this committee right now are basically deflecting criticism, if you will, from the manufacturers, pointing out that there is no national safety guideline for formaldehyde levels in travel trailers. However, the CDC says, look, we've done study after study that shows if people are exposed to 80 parts per billion they are going to have health problems and if they have sensitivities to formaldehyde, those problems are going to be horrific.

Earlier we introduced you to Carolyn Selez. She is a 60-year-old woman who lives in St. Bernard Parish, only about a five mile drive from where I'm standing right now. She is somebody who claims that she has had big problems from formaldehyde. Like most of the trailers in the gulf area, hers is on her land. It's connected basically to the house that she is renovating.

Now, Tony, the formaldehyde bothered her so much that she actually moved out of her trailer months ago, long before her house was even ready to be lived in, because she was trying to get away from those formaldehyde levels. Really, we are waiting to hear from the manufacturers to hear exactly what they say, how the trailers were built, was there any collusion, did they ignore safety warnings? That is the allegation coming from many members of congress.

HARRIS: Sean, that woman there that you just introduced us to, has that woman filed a lawsuit against any of the manufacturers of these trailers? I'm wondering if others have.

CALLEBS: Others have. To my knowledge, Carolyn Selez has not filed a lawsuit, but there are hundreds of lawsuits pending. That really cuts to the core of this issue. Are these manufacturers responsible for making people sick? Now, we've seen a number of quotes from attorneys who represent these families, saying, look, it's laughable to say that it's not the manufacturers' fault. They are the people providing these trailers. But you have go back to what we're hearing so far.

There is no national safety standard for formaldehyde levels in travel trailers. The CDC says it's not our job to set levels but we are working as kind of an interim between the government and the industry to come up with some kind of acceptable level because we are going to have another disaster at some point and we are going to need tens of thousands of homes immediately, and travel trailers or mobile homes are really the kind of items that people look to.

HARRIS: There he is, Sean Callebs in New Orleans for us this morning. Sean thanks.

COLLINS: And a spectacular performance to show you. A volcano spewed the bubbling geyser of lava. Nature makes a scene in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: A staggering numbers from the Iowa floods, the University of Iowa now putting its repair costs at $231 million. That is more than triple the original estimate of about $75 million. 20 campus buildings were damaged by the flooding. But a university spokesman says they learn more about the extent of damage really every day. Overall damage costs from record flooding in June are expected to be in the billions.

COLLINS: New evacuations now in northern California, around 26,000 residents in Paradise, California, were told to leave. Wildfires moving closer to their doorsteps. And in nearby Concow, 40 homes were destroyed by a fast moving fire. It was sparked by embers from another nearby wildfire. There are 330 active fires burning in the state right now from Santa Barbara County south all the way out near the Oregon border. Cal Fire officials say they have more than 20,000 people fighting those fires.

(WEATHER REPORT)

COLLINS: Very well. And I know you've seen this next picture, too. Beautiful, right?

HARRIS: Mountains of red, hot lava, rivers of fire from Hawaii's Kilauea Volcano. Nice pics. The eruption spewing lava 30 feet into the air, it is threatening just one of the only remaining homes in the nearby subdivision. Not a great thing there. Last week the lava path shifted with more flowing into the ocean of good development but officials say the flow into the sea has slowed to a trickle.

COLLINS: Iran plays war games with missiles. The U.S. and Israel launch a quick protest, here in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Iran fires missiles. Leaders in Washington fire back. The White House quick to criticize this morning's test-firing of nine missiles and they're calling on Tehran to refrain from any more tests. Also weighing in, the democratic and republican presidential candidates.

(BEGIN VIDEO CLIP) SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: It's so important for us to have a coherent policy with respect to Iran. It has to combine much tougher threats of economic sanctions with direct diplomacy, opening up channels of communication, so that we avoid provocation but we give strong incentives for the Iranians to change their behavior.

(END OF VIDEO CLIP)

HARRIS: Republican John McCain had this to say, "Iran's most recent missile test demonstrates again the dangers it poses to its neighbors and to the wider region, especially Israel." One of the missiles fired today reportedly has a range of 1250 miles that puts Israel within striking distance. Other missile types fired today had ranges of 105 and 250 miles.

COLLINS: Back to back blasts this morning in Iraq. Officials in Fallujah say six people are dead, including four police officers, 18 others wounded. Medics and police report the first bomb exploded outside a bank, the second bomb went off after crowds gathered at the sight. The Sunni city had been a stronghold for insurgents, but U.S. and Iraqi troops have chased many al Qaeda cells out of the area.

Next stop, U.S. federal court. That's what the U.S. is pushing for two Colombian guerrillas detained in last week's hostage rescue. A formal extradition request set to be presented to the Colombian government today. And Colombia says it will respond quickly. Three Americans were among 15 hostages freed in a daring rescue.

Former Colombian presidential candidate Ingrid Betancourt was also freed. She will talk about her ordeal in an exclusive interview tonight on CNN's "Larry King Live." Going to be a great show, comes your way 9:00 p.m. eastern/6:00 p.m. pacific.

HARRIS: Are you a target for car thieves? The new list of most stolen vehicles is out, and your ride may be on it.

(COMMERCIAL BREAK)

COLLINS: Overtime at the G8. The G8 ended its Japanese summit with a sideline session with some of the world's other economic powers. Those nations including China and India did not sign on to the G8's goal of having greenhouse gas emissions by 2050. The other nations wanted the G8 to set harder targets for reductions. Despite the differences, President Bush said it was important that all major economies gathered to address climate change.

HARRIS: It's almost hard to believe, the press briefing book prepared by the White House for the G8 summit actually described Italy's prime minister as a dilettante. That's not all. Jennifer Eccleston reports.

(BEGIN VIDEOTAPE)

JENNIFER ECCLESTON, CNN CORRESPONDENT (voice-over): One of the most controversial leaders in the history of a country known for governmental corruption and vice. At least that's according to the White House briefing book issued to journalists traveling with President Bush at the G8 summit in Japan.

The backgrounder called the 71-year-old media mogul turned pro American politician a dilettante who gained his office only through use of his considerable influence on the national media. In fact, the flamboyant billionaire, owns several media outlets, Italy's third richest man, he is no stranger to controversy. On trial for more than a dozen charges like corruption and tax fraud since entering politics in 1994. On all of them, he was acquitted or convictions were overturned on appeal. He was reelected to a third term as PM in April.

After Italian media printed the unflattering commentary from the U.S. briefing book which one newspaper tepidly called a gaffe, the White House issued a rare apology. From spokesman Tony Fratto, "The sentiments expressed in the biography do not represent the views of President Bush, the American government, or the American people. The White House says the erroneous clips were copied from an encyclopedia and said "President Bush holds Prime Minister Berlusconi and the Italian people in the highest regard."

(On camera): For his part, Silvio Berlusconi speaking from Japan said, "It's no problem the bio was taken out of context by the media and he's not looking for any apology. Jennifer Eccleston, CNN, Rome.

(END OF VIDEOTAPE)

COLLINS: Quickly, we want to take a look at the Dow Jones industrial average. The bog board now looks like things are down a little bit, 11 points, 12 or so. Resting at 11372, watching the NASDAQ and oil prices for you as well. Quick break here. We'll be right back.

(COMMERCIAL BREAK)

(BUSINESS HEADLINES)

HARRIS: Taking a crack at older cars, that is the M.O. for car thieves according to insurance experts. Here are the top five most stolen cars last year, the 1995 Honda Civic has topped the list. Four years in a row now, another Honda, the 1991 accord is second, then comes the 1989 Toyota Camry, the 1997 Ford F-150, and the 1994 Chevy 1,500 pickup.

Quick break, we're back in a moment.

(COMMERCIAL BREAK)

HARRIS: We haven't been following this, but the bulls keep running, they just don't stop and the injuries just keep mounting. Today is the third day of the running of the bulls in Pamplona, Spain. A California man was gored in the abdomen and a Greek man suffered some facial injuries. That brings to 20 the number of runners hurt so far. The running of the bulls as you know Heidi is an annual tradition started 400 years ago. It rose to worldwide prominence when author Earnest Hemingway wrote about it in the early 20s.

COLLINS: Only 20 guys injured, ah?

HARRIS: So far.

COLLINS: Motorists looking for a very short-term deal on a car have new options. CNN's Chad Myers reports.

(BEGIN VIDEOTAPE)

CHAD MYERS: This and this could mean the next big thing in car ownership is not owning a car.

RICHARD MULLIGAN, ZIPCAR MARKETING MANAGER: We have to get people thinking about leaving a car free existence, using public transportation, car sharing, cars on demand, and not necessarily always driving.

MYERS: That's certainly how car sharing company ZipCar thinks. It rents cars by the hour or the day for a monthly fee that includes gasoline. Zip Cars are kept on college campuses and in urban parking lots in more than 50 cities. Renters reserve them online and pick up the cars themselves. It's all self-service.

MICHAEL GAITAN, ZIPCAR MANAGER: I work for a major airline. And I'm able to get a car in New York, Portland, Atlanta, and San Francisco too. I've saved $600 a month without having a car.

MYERS: Zip car has been around since 1999, but now it's rolling out promotions to attract more zipsters. Perhaps like this one in Atlanta. People donate their car to charity and get a free Zip Car membership in return. Last year Zip Car merged with its competitor Flex Car, but now it's getting more competition. Hertz, Enterprise and U-Haul now offer hourly rentals.

HELEN JONES, ZIPCAR MEMBER: I think it is catching on. It's simpler, who wants to sit in traffic for two hours every day?

MYERS: Chad Myers, CNN, Atlanta.

(END OF VIDEOTAPE)

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