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Obama Visits Turkey; Central Italy Decimated by Earthquake; Red Flags for Mortgage Con Artists; Police: Atlanta a Hub for Drug Traffickers; Evaluating Obama's Europe Trip; Defense Secretary Gives Briefing on Military Cuts; Military Widow Supports Public View of Casket Arrivals
Aired April 06, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The Pentagon pushing forward, cutting costs, and ditching weapons. Could the timing be any worse? Our economy in recession, too many people out of work, thousands more jobs now in the crosshairs.
Parts of an Italian city reduced to rubble. An earthquake sends walls tumbling down, killing dozens of sleeping residents. Rescuers still searching for survivors.
Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta, and you're live in the CNN NEWSROOM.
What will he cut or curtail first: aircraft carriers, strike fighters? Hard choices Defense Secretary Robert Gates says, as he talks about a fundamental shift in U.S. military priorities. Multibillion-dollar projects and thousands of jobs could get the axe.
Secretary Gates not sure about the F-22 fighter. Long on buck and short on bang? Well, if it goes, thousands of people who build it may lose a job, too.
Secretary Gates' announcement, live, as soon as he steps up to the mike.
President Obama has arrived in Istanbul, Turkey, after a stopover in Ankara. It's the first U.S. presidential visit to Turkey since President George Bush in 2004.
And as CNN White House correspondent Suzanne Malveaux reports, this visit has a very different tone.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: When President Bush came here to Ankara, Turkey, covering that, there was a great deal of strain and frustration. A very complicated relationship with the Turkish government. Obviously, President Bush very frustrated he did not get the kind of support that he wanted from the Turkish government regarding the Iraq war.
Well, now President Obama is really trying to show that things are different now. There's a change of leadership, a change in message as well as tone. He recognizes that the Turkish government is going to be a very important, critical player on a number of fronts. They not only have troops in Afghanistan but also could play a key role when it comes to the Israeli/Palestinian conflict: perhaps dialogue there as well as Israel's conflict with Syria and perhaps even bridging the gap between the United States and Iran.
So we heard from President Obama a new message to the Muslim community, to the people here and the wider region.
Let's take a listen.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The United States is not and will never be at war with Islam. In fact -- in fact, our partnership with the Muslim world is critical, not just in rolling back the violent ideologies that people of all faiths reject, but also to strengthen opportunity for all its people.
I also want to be clear that America's relationship with the Muslim community, the Muslim world, cannot and will not just be based upon opposition to terrorism.
MALVEAUX: The predominantly Muslim country borders Iraq, Iran and Syria. So it is geographically, as well as politically positioned, really, to make an impact in this region.
Barack Obama saying that this was his No. 1 priority from day one of his administration: to deal with the Middle East peace process, the conflicts in the region, so obviously, looking to Turkey to really pave a new way with the Muslim community.
(END VIDEOTAPE)
PHILLIPS: Suzanne Malveaux, thanks so much.
And President Obama also visited the Mausoleum of Ataturk, Turkey's greatest national hero, even penning an inscription in the visitors' book.
Ataturk is a title that means "Father of the Turks." Mustafa Kemal got that name after founding modern Turkey in 1923 following the collapse of the Ottoman Empire. He served as president for 15 years, adopting sweeping political, economic and social reforms.
An historic hillside Italian city lies in runs. Sleeping residents of L'Aquila surprised by a strong earthquake overnight. Falling walls crushed dozens and dozens of people. The death toll nearing 100 now, and it's expected to rise.
Entire blocks of buildings in the city's center have collapsed. The mayor says 100,000 people in and around L'Aquila are now homeless. The American missionary living there describes the moment that the quake hit.
(BEGIN VIDEO CLIP) JOSHUA BROTHERS, AMERICAN MISSIONARY (via telephone): The best way I could describe it perhaps is exactly like a 747 coming over. Very loud. You can feel the entire building swaying back and forth.
(END VIDEO CLIP)
PHILLIPS: Take a look at the absolutely incredible rescues throughout the day. People weeping in shock, but still alive. Look at this man hugging onto the rescuer as he pulls him out from beneath that rubble. Those rescue crews have been looking for survivors all day long. Now night's falling, and so are the temperatures.
Chad Myers, I'll tell you what: you see video like this, and you just keep praying that they're going to find even more.
CHAD MYERS, AMS METEOROLOGIST: Yes, 6.3. it was a pretty big quake. And there's also a very shallow quake, which means that there was not much of a crust to -- to pillow that shake. Where the shaking happened really shook hard right above the epicenter.
Now, we didn't get a lot of shaking in Rome. That was about 60 miles away. But the problem is this town was very close to the epicenter.
Notice how -- this is where all the shaking is. If you go up here, you go from strong and severe in this orange category to light or weak shaking. And we take that in about five miles. This is very little shaking away from the epicenter, but very strong shaking in the epicenter.
In 1997, there was a series of quakes about 50 miles north of here, and there were six quakes, Kyra -- six quakes above 5.0 in a two-month period. So sometimes they get series or sequences of quakes that could happen. So far, they have been some light aftershocks. Nothing like that. This is going to be a nightfall. It's going to get down to 43 degrees tonight.
People were asleep, so they're all in their night wear, or whatever -- whatever you wear to bed. That's what you're probably wearing. And we know that there are still many, many people trapped -- Kyra.
PHILLIPS: Yes. We're going to get a live report from there, coming up in just a few minutes. Chad, thanks so much.
And if you're struggling to stay in your home, well, sharks are out there smelling blood. The treasury, justice and two other departments announced that they're teaming up to crack down on mortgage and foreclosure scams.
Basically, the FBI and justice will have to do more and have more tools to go after these con artists. And there's a lot of those con artists out there. Mortgage fraud's at an all-time high, even though there are fewer home loans being approved.
(BEGIN VIDEO CLIP) ERIC HOLDER, U.S. ATTORNEY GENERAL: I'd like to speak directly to those individuals and to those companies whose illegal and repulsive practices have harmed far too many Americans. And the message is very simple. If you prey on vulnerable homeowners with fraudulent mortgage schemes or discriminate against borrowers, we'll find you and we will punish you.
(END VIDEO CLIP)
PHILLIPS: Well, you've probably gotten mail or phone calls from potential lenders -- all of us here at CNN have -- and thought that this offer might sound too good to be true. Well, if they want fees up front for their services, you need to run like the wind.
Our personal finance editor, Gerri Willis, knows the red flags that you need to look out for. And she'll be here with more on that in just a few minutes.
(COMMERCIAL BREAK)
PHILLIPS: Well, here's something that you haven't seen in years: the return of a flag-draped casket of an American serviceman. In this case, Staff Sergeant Phillip Myers, who died in a roadside bombing in Afghanistan, is coming home.
News photographers have been banned from taking these pictures since 1991. But the Obama administration has changed the policy. He says pictures can be taken with permission from the fallen service member's family.
Do you think the news media pictures of coffins should be allowed? Send us your e-mail to CNNnewsroom@CNN.com. We're going to have a discussion coming up later this hour.
(COMMERCIAL BREAK)
PHILLIPS: An historic hillside Italian city lies in ruins. Sleeping residents of L'Aquila surprised by a strong earthquake overnight. Falling walls crushed dozens and dozens of people. The death toll nearing 100, and we're expecting to hear that that number will rise. Since the initial quake, the aftershocks have been rattling that area.
CNN's Diana Magnay is on the line with us with the latest from L'Aquila.
Diana, what can you tell us?
DIANA MAGNAY, CNN PRODUCER (via telephone): Well, Kyra, I'm looking at a destroyed dormitory that housed students. This is a university town, the town of L'Aquila. And they are trying to rescue bodies from the rubble. They say that there may be six more people trapped in here. This will be their 17th hour of being trapped.
And all around watching, looking are friends and relatives dressed in blankets, hoping that their loved ones are pulled out of the rubble safely. But already, we've had two bodies, dead bodies pulled out just at the site that I'm in front of, Kyra.
And this is -- this is just one scene in a huge area of the Abruzzo region where this earthquake has got, not just the city of L'Aquila, but all across this region. Twenty-six towns have been hit. It really is a devastating sight, Kyra.
PHILLIPS: So Diana, you mentioned possibly six more people trapped there where you are. But you're saying that in other parts of the region there could be more people trapped? And that -- go ahead.
MAGNAY: That death toll could rise. Absolutely. I mean, we're hearing media reports of the village that we haven't yet been able to get to, the village of Amlo (ph), that there, which is a small village of just 400 people, that there were 50 bodies pulled out of the rubble there today alone, which would suggest that there may be more still waiting to be pulled out.
So the figures are really quite horrifying all across this region, Kyra.
PHILLIPS: Final question, Diana. A lot of people back here at home mentioning they've got relatives, family members, Americans overseas on vacation. Not only are the locals being affected but any word about possible Americans being caught up in what we're seeing here?
MAGNAY: Not that we've heard so far. I know that, obviously, the embassies will be in touch and are trying to find out through Italian officials whether there are foreign nationals including U.S. citizens involved here. So far the answer to that is no. But obviously, this is a huge area across -- across the center of Italy. And that may change, Kyra.
PHILLIPS: Diana Magnay, sure appreciate you joining us with that live report. We'll continue to check in with you.
Back here in the United States, we continue to watch the numbers, as well. Dow Industrials, as we look at the big board, down 127 points.
One man's loan modification lifeline could be another's scam. As you may have heard earlier, Uncle Sam announced a tough new initiative today to crack down on predators who take advantage of homeowners on the brink.
Our personal finance editor, Gerri Willis, in New York with some tips to protect you from those rip-offs.
Hey, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, Kyra.
Yes, this is a huge problem, and only growing. It's amazing. You know, at the top of the boom, the housing boom, we saw a lot of fraud. Guess what? It's back with a vengeance. Now the federal government saying, "Hey, guess what? We're going to crack down on these mortgage fraudsters."
Here's what you need to look at, the red flags, if you will, if you're worried that you're being taken advantage of.
If you were told when you were applying for a mortgage to leave parts of that application blank -- "Don't worry about it. The broker or the banker's going to fill it out for you" -- guess what? You're probably in a scam, because they're going to inflate your salary, your income to make it clear that you can afford the place. Maybe you can't. Anyway, that's something to watch out for.
If you're asked to pay money up front. Now, this happens in a lot of mortgage foreclosure scams. People are asked to pay money to get help. They do. They send thousands of dollars to what turns out to be a simple scam artist.
All right. If you're given extensive documents to sign and read, maybe you're getting help on a foreclosure rescue situation, maybe it's another kind of situation, the reality is one of those documents, just one in that big pile could be a document that signs over your house to somebody else, a scamster. So you've got to watch out that. Those are the red flags -- Kyra.
PHILLIPS: Where can people go if they think they've been a victim? Because Gerri, we were talking in our morning meeting this morning.
WILLIS: Right.
PHILLIPS: We've all gotten the calls; we've gotten stuff in the mail. I mean...
WILLIS: It's crazy.
PHILLIPS: Yes.
WILLIS: It's just crazy.
All right. FBI, FBI.gov is a good place to go. FTC, FTC.gov. That's the Federal Trade Commission. But they're not going to solve your case, but they can put the con artist out of business, which makes you feel better, even if you got taken.
The Department of Housing and Urban Development -- that's HUD.gov -- they're all over this, too. The short answer here is that the government is really on watch for this, but you really have to take care of yourself. Watch out for the red flags.
And even watch out, Kyra -- listen to this -- to your parents, even if they own their own home outright. They could be a victim of mortgage fraud. There's a deed scam out there where scamsters steal your house by taking your deed.
PHILLIPS: Wow. All right. Well, we're staying on top of it all, obviously. Because when this economy is in the position that it's in, those scams, it just gets worse, and more people prey on those that are so desperate.
Gerri, thanks a lot.
WILLIS: My pleasure.
GRAPHIC: Image of newspaper with headline, "Times Co. threatens to shut Globe, seeks $20m in cuts from unions."
PHILLIPS: Well, that headline says it all. And it could be one of the last for the "Boston Globe." The newspaper says its owner, "The New York Times" company, is now threatening to shut it down. That is unless the unions agree to 20 million in concessions.
Like many papers, "The Globe" is suffering from online competition.
(BEGIN VIDEO CLIP)
PROF. TOBE BERKOVITZ, BOSTON UNIVERSITY: Many people believe that the mistake was made right at the beginning and newspapers, as well as any other type of content provider, should have -- should have charged the public for their product. They didn't. That genie is out of the bottle. And now how do we manage to get people to pay for information that they're consuming online?
(END VIDEO CLIP)
PHILLIPS: Well, "The Globe" has been in print for 137 years.
We're helping Americans get a job one person at a time. We're giving job seekers 30 seconds to pitch themselves, and today it's Mario McGowan. That's his e-mail at the bottom of the screen, by the way, if you're a prospective employer. And here he is, Mario in person.
(BEGIN VIDEO CLIP)
MARIO MCGOWAN, JOB SEEKER: Hi. My name is Mario McGowan. I'm a graduate of Illinois State University in Normal, Illinois. I'm also a veteran of the United States Marine Corps, Weapons Company 2-5.
I've been the CEO of my own Internet-based company. I am looking for employment. I have a huge background in sales and marketing. I am looking for employment in just about anything. But I think I'm highly qualified to do a great job.
(END VIDEO CLIP)
PHILLIPS: All right, Mario. Good luck. Thank you so much.
Again, if you're looking to hire Mario -- well, that was the 30- second buzzer. Obviously, he finished his pitch in less than 30 seconds. You can go to MarioMcGowan@gmail.com if you want to give him a shot.
Well, DEA agents seem to agree that drug traffickers love Atlanta. And it's not for the aquarium or the Coke Museum. It's all about location, location, location.
(COMMERCIAL BREAK)
PHILLIPS: Well, for years Atlanta's been famous for its traffic. And today the area is infamous for its drug traffic. The DEA believes Atlanta is the No. 1 drug hub on the East Coast.
And here are four big reasons why: I-75, 85, 20 and 285. So many lanes, so many directions. So convenient for traffickers to move their product.
Here's CNN's Brooke Baldwin.
(BEGIN VIDEOTAPE)
BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Drugs, weapons and cold hard cash is a lethal combination fueling the Mexican drug cartels. And according to the Drug Enforcement Administration, now a new city has emerged as the staging ground for this deadly trade.
RODNEY BENSON, SPECIAL AGENT IN CHARGE, ATLANTA DEA: Metro Atlanta is a hub for business in the southeast. It's also a hub of operations for Mexican organized crime.
BALDWIN: Atlanta, prime real estate for drug distribution, according to the DEA's top Atlanta agent, Rodney Benson. He agreed to take CNN on a special aerial tour to illustrate how these deals go down, starting with the southern city's web of freeways.
BENSON: You can go east, west, north, south from metro Atlanta, moving (ph) shipments of drugs from the southwest border all the way up the eastern seaboard.
BALDWIN: Before that can happen, the driver must wait here, at truck stops just like this one, often in broad daylight.
BENSON: A truck driver arriving to a place like this will then wait. It could be -- it could be as soon as an hour. It could be two or three days. Then they'll receive instructions.
BALDWIN: Next the driver heads to a warehouse. Benson says there is plenty to pick from in Atlanta. There, the drugs are parceled out and sent to dealers throughout the U.S.
But the drivers aren't done. They use this same truck to smuggle money and guns back into Mexico.
In 2008, Atlanta led the nation with $70 million in confiscated cash, according to the DEA. And last September, federal agents, along with local law enforcement, rounded up 34 members of Mexico's Gulf cartel in the Atlanta area alone, part of a nationwide effort called Project Reckoning.
(on camera) If you think that drug cartels are keeping their high-dollar drug operations in the gritty inner city, think again. The DEA says they prefer the suburbs. They move into quiet, middle- class neighborhoods just like this one, where they set up shop, stockpiling drugs and cash before distributing them.
(voice-over) Last July a group of men with cartel connections lured a Rhode Island drug dealer to this Gwinnett County home. They chained him, beat him and held him hostage, demanding he pay $300,000 they say he owed. The DEA raided the home before it was too late.
BENSON: There's no doubt in my mind that, if we didn't act when we did, he would have been dead.
BALDWIN: Three men got caught and pleaded guilty, but the rest escaped.
Benson says the explosive growth of Hispanic immigrants in metro Atlanta is another reason why Mexican cartels come here, allowing them to blend in and disappear. Enabling this deadly drug trade to rage on, spreading roots in this southern city.
(END VIDEOTAPE)
PHILLIPS: All right. So local law enforcement, the mayor, what was the reaction?
BALDWIN: The reaction from them -- talked to the mayor, mayor's office, Shirley Franklin. Obviously, she is very aware of the drug trafficking in her city, although her office is quick to point out that the majority of the crime isn't happening downtown, per se, but in metro Atlanta.
Local law enforcement, Gwinnett County, Atlanta (ph) specifically, working very closely with the DEA. Narcotics officers I talked to on the phone. They're really pounding the pavement every day on this. They agree with the DEA in calling Atlanta the No. 1 drug hub for distribution on all of the East Coast.
PHILLIPS: And you know, we asked you to work on this piece because of this map that we saw in "The New York Times." And we still are talking about this map.
BALDWIN: Yes.
PHILLIPS: Because where all these red dots are, this is where the drug cartel is involved. I mean, in New Mexico -- Columbus, New Mexico -- Louisiana, look at all the areas here. Well, of course, New Orleans, we've talked about the drug problems there.
BALDWIN: Right.
PHILLIPS: But Lafayette. Go up to Minnesota -- St. Cloud, Minnesota -- Montana. I mean...
BALDWIN: It's the obviously spots along the southwest border. But Kyra, look, all around in here and, obviously, Atlanta. Let's talk about the fact that, according to DOJ, I think it's something like 203 different cities nationwide with these kind of cartel connections, be it distribution or even supply. And as far as violence goes, let's talk about that. That's an important piece of the story here. It's important to point out that the violence in the U.S. doesn't compare to Mexico. Thousands of beheadings, kidnappings.
But here violent crime, it has dropped on or near the border, according to authorities, but Arizona being the exception. That's up when it comes to homicide. But law enforcement attribute that to drug smuggling.
Here in Atlanta, DEA and local police tell me violence is up. But a very key distinction here. The fact that it is drug trafficker on drug trafficker violence, not what they call collateral damage, which is a good thing. We're not talking about folks living in a neighborhood getting involved in this kind of crime, but violence, kidnappings, drug trafficker on drug trafficker violence is up in Atlanta.
PHILLIPS: Because in the other parts of the United States, we are hearing about the average Joe neighbor who may live next door to someone who gets involved with the cartel.
BALDWIN: Accidentally getting involved.
PHILLIPS: Yes. Kidnappings and not meaning to get involved.
BALDWIN: Right.
PHILLIPS: And they saw something they weren't supposed to see. And I mean, these cartels are pretty brutal when it comes to violence.
BALDWIN: Very brutal.
PHILLIPS: Yes. All right. We'll stay on top of it.
BALDWIN: All right.
PHILLIPS: Thanks a lot.
BALDWIN: Thanks, Kyra.
PHILLIPS: Appreciate it, Brooke.
Well, the Pentagon expected any minute now to announce big cuts in weapons systems. We're not the only ones waiting for Defense Secretary Robert Gates to step up to the mike. So are thousands of people worried about their jobs. We'll take it live as soon as it happens.
(COMMERCIAL BREAK)
PHILLIPS: Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
Well, today is the day that a lot of people in the defense industry have been looking forward to with a certain degree of dread. That's for sure. Some could find out that they're joining the ranks of the jobless.
Defense Secretary Robert Gates is going to be out any minute now to talk about a fundamental shift, he says, in U.S. military priorities. Some multibillion dollar projects could be scrapped. And of course, some Pentagon programs actually might get more money.
We're going to have his announcement live as soon as he steps up to the mike.
Now, in a country where East meets West, President Obama is reaching out to the Muslim world. Turkey is the final scheduled stop on the president's international tour. It's a secular Muslim nation that straddles Asia and Europe. And President Obama told the Turkish parliament that he was there to send a message.
(BEGIN VIDEO CLIP)
OBAMA: The United States is not and will never be at war with Islam. In fact -- in fact, our partnership with the Muslim world is critical, not just in rolling back the violent ideologies that people of all faiths reject but also to strengthen opportunity for all its people.
(END VIDEO CLIP)
PHILLIPS: Well, in visiting Turkey, President Obama is following the footsteps of four earlier U.S. presidents. Dwight Eisenhower was first, in 1959. George H.W. Bush visited in 1991. Bill Clinton made the trip in '99. And George W. Bush went to Turkey in 2004.
And most Americans seem to think that the Obama effect is helping U.S. international relations. Look at the polls: 79 percent of those questioned in this new CNN/Opinion Research Corporation poll believe he's had a positive effect. Only 19 percent think that President Obama has made people in other countries more negative about the U.S.
Now, 16 percent say that the president has accomplished a great deal on his international trip. And 45 percent say he's accomplished a fair amount. Now, only 24 percent say that he hasn't accomplished very much. And 11 percent say he's accomplished nothing at all.
The president may be gaining support overseas. His foreign policy, though, is drawing some criticism here at home. CNN's Jim Acosta reports from Washington.
(BEGIN VIDEOTAPE)
JIM ACOSTA, CNN CORRESPONDENT (voice-over): The president has spent much of his trip pushing a global reset button, trying to mend America's broken fences with the world. But on the same day, President Obama called for an end to nuclear weapons...
OBAMA: I state clearly and with conviction America's commitment to seek the peace and security of a world without nuclear weapons.
ACOSTA: ... he had to condemn North Korea for firing a rocket. OBAMA: North Korea broke the rules. Once again.
ACOSTA: Back in Washington, an influential Republican accused Mr. Obama of going soft.
NEWT GINGRICH (R), FORMER HOUSE SPEAKER: I think it's very dangerous to have a fantasy foreign policy. The president's in a world where Hamas is firing missiles every day into Israel. Iran is building nuclear weapons. And the North Koreans today during -- basically during his speech fired a missile.
OBAMA: America is changing.
ACOSTA: But across the Atlantic, the reviews were different. Icy tensions that had existed during the Bush administration...
DONALD RUMSFELD, FORMER SECRETARY OF DEFENSE: Now, you're thinking of Europe as Germany and France. I don't. I think that's old Europe.
ACOSTA: ... were melting under the lights following a new American first couple.
DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: I think he's done more in a single trip to transform U.S./Europe and U.S. international relations than I've seen any president do in a long, long time.
ACOSTA: Even as the president plainly said the U.S. had made mistakes in confronting terrorism, he warned al Qaeda was far from finished.
OBAMA: It is important for Europe to understand that even though I'm now president and George Bush is no longer president, al Qaeda is still a threat.
ACOSTA: The president had tried to turn a page from...
GEORGE W. BUSH, FMR. U.S. PRESIDENT: You're either with us or against us.
ACOSTA: Still, some observers say Mr. Obama did not get the big European commitments he wanted on the financial crisis or Afghanistan.
ED ROLLINS, REPUBLICAN STRATEGIST: I don't think he accomplished much in the sense of what they set out to, but those goals are pretty high.
ACOSTA: Now, this American rebranding will be tried in Turkey where images of Mr. Obama are now used in advertising in this largely Muslim nation.
DAVID AXELROD, WHITE HOUSE SENIOR ADVISER: He has sent a signal to the world that we're re-engaged.
ACOSTA (on camera): One of the biggest changes, the Obama administration is not even using the term "global war on terror." But not everything will change overnight. Take the prickly issue of a missile defense shield in Europe. Despite Russian objections, the president says the U.S. will continue to pursue that shield as long as Iran poses a threat.
Jim Acosta, CNN, Washington.
(END VIDEOTAPE)
PHILLIPS: Well, it hit as Italy slept, and it hit hard. A strong earthquake brought down whole blocks in the medieval city of L'Aquila, just about 70 miles outside of Rome. At last report, the death toll was 92 and expected to rise. A college dorm, apartment buildings, a 13th-century church all collapsing in the overnight quake. The mayor estimates 100,000 people are left homeless, and Italian Prime Minister Silvio Berlusconi declaring a state of emergency and canceling a planned trip to Russia.
More details on the quake area and the conditions there from our Chad Myers. He's been tracking all the details for us -- Chad.
MYERS: We may have to go to a briefing here pretty soon. But if we do, just interrupt me. It was a 6.3 quake here right in the middle of Italy, right in the Apennine mountain range. And this is a very typical area for earthquakes. They have earthquakes all the time in Italy, over 2,000 last year.
There's the town on the bottom of your screen. Let me zoom in. A typical -- look at the tile roof, very close, narrow streets. That's what the city looks like. But if you notice where the earthquake is and where the epicenter is, you will also notice smaller towns that were even closer. I can't imagine what these smaller towns that were closer to the epicenter could look like right now. We don't have any information from these towns. Basically, information (INAUDIBLE) cut off.
PHILLIPS: Chad, I apologize. You're right. We've got to get straight to Sec Def. He's started the conference on the cuts within the Pentagon. Let's listen in.
(JOINED IN PROGRESS)
ROBERT GATES, U.S. SECRETARY OF DEFENSE: ... profoundly reform how this department does business.
In many ways, my recommendations represent a cumulative outcome of a lifetime spent in the national security arena, but above all, questions asked, experience gained and lessons learned from over two years of leading this department, and in particular, from our experience in Iraq and Afghanistan.
I reached the final decisions after many hours of consultations with the military and civilian leadership of the department. I have also consulted closely with the president. But I received no direction or guidance from outside this department on individual program decisions. The chairman and the vice chairman of the Joint Chiefs of Staff are in complete accord with these recommendations. The chairman is traveling abroad, but he has provided a statement that we will distribute at the end of the briefing along with the text of my remarks.
My decisions have been almost exclusively influenced by factors other than simply finding a way to balance the books or fit under the top line, as is normally the case with most budget exercises.
Instead, these recommendations are the product of a holistic assessment of capabilities, requirements, risks and needs for the purpose of shifting this department in a different strategic direction.
Let me be clear: I would have made virtually all of the decisions and recommendations announced today, regardless of the department's top line budget number.
The decisions have three principal objectives: First, to reaffirm our commitment to take care of the all-volunteer force, which, in my view, represents America's greatest strategic asset.
Second, we must rebalance this department's programs in order to institutionalize and finance our capabilities to fight the wars we are in today and the scenarios we are most likely to face in the years ahead, while at the same time providing a hedge against other risks and contingencies.
Third, in order to do this, we must reform how and what we buy, meaning a fundamental overhaul of our approach to procurement, acquisition, and contracting.
So, first, people. With regard to the troops and their families, I recommend that we first fully protect and properly fund the growth of military end strength in the base budget. This means completing the growth in the Army and the Marine Corps while halting reductions in the Air Force and Navy. Accomplishing this will require a nearly $11 billion increase above the F.Y. '09 budget level.
Second, continue the steady growth in medical research and development by requesting $400 million more than last year. Third, recognize the critical and permanent nature of wounded ill and injured, traumatic brain injury and psychological health programs. This means institutionalizing and properly funding these efforts in the base budget and increasing overall spending by $300 million. The department will spend over $47 billion in health care in F.Y '10.
And fourth, increase funding by $200 million for improvements in child care, spousal support, lodging and education. Many of these programs have been funded in the past by supplementals. We must move away from ad hoc funding of long-term commitments.
Thus we have added money to each of these areas, and all will be permanently and properly carried in the base budget. Together they represent an increase in the base budget funding of $13 billion from last year.
Second, a home for the war fighter.
As I told the Congress in January, our struggles to put the defense bureaucracies on a war footing these past few years have revealed underlying flaws in the priorities, cultural preferences and reward structures of America's defense establishment, a set of institutions largely arranged to prepare for conflicts against other modern navies, armies and air forces.
Programs to directly support, protect and care for the man and woman at the front have been developed ad hoc and funded outside the base budget.
Put simply, until recently, there has not been an institutional home in the Defense Department for today's war fighter. Our contemporary wartime needs must receive steady, long-term funding and a bureaucratic constituency similar to conventional modernization programs.
I intend to use the F.Y. '10 budget to begin this process. First, we will increase intelligence surveillance and reconnaissance support for the war fighter in the base budget by some $2 billion.
This will include fielding and sustaining 50 Predator and Reaper- class unmanned aerial vehicle orbits by F.Y. '11 and maximizing their production.
This capability, which has been in such high demand in both Iraq and Afghanistan, will now be permanently funded in the base budget. It will represent a 62 percent increase in capability over the current level and 127 percent from a year ago.
We will increase manned ISR capabilities such as the Turboprop aircraft deployed so successfully as part of Task Force Odin in Iraq.
We will initiate and research and development on a number of ISR enhancements and experimental platforms optimized for today's battlefield.
Second, we will also spend $500 million more in the base budget than last year to increase our capacity to field and sustain more helicopters, a capability that is in urgent demand in Afghanistan.
Today, the primary limitation on helicopter capacity is not air frames but shortages of maintenance crews and pilots. So, our focus will be on recruiting and training more Army helicopter crews.
Third, to boost global partnership capacity efforts, we will increase funding by $500 million. These initiatives include training and equipping foreign militaries to undertake counterterrorism and stability operations.
Fourth, to grow our special operations capabilities, we will increase personnel by more than 2,800, or 5 percent. And we'll buy more special forces optimized lift mobility and refueling aircraft. Fifth, we will increase the buy of literal combat ships, a key capability for presence, stability, and counterinsurgency operations in coastal regions, from two to three ships in FY '10. Our goal is eventually to acquire 55 of these ships.
Sixth, to improve our intertheater lift capacity, we will increase the charter of joint high-speed vessels from two to four until our own production program begins deliveries in 2011.
Seventh, we will stop the growth of army brigade combat teams, BCTs, at 45 versus 48, while maintaining the planned increase in end strength of 547,000. This will ensure that we have better manned units ready to employ and help put an end to the routine use of stop- loss. This step will also lower the risk of hollowing the force.
Third -- conventional and strategic modernization. Even as we begin to shift resources and institutional weight towards supporting the current wars and other potential irregular campaigns, the United States must still contend with the security challenges posed by the military forces of other countries, from those actively hostile to those at strategic crossroads.
Last year's national defense strategy concluded that, although, U.S. predominance in conventional warfare is not unchallenged, it is sustainable for the medium term, given current trends. This year's budget deliberations focused on what programs are necessary to deter aggression, project power when necessary and protect our interests and allies around the globe.
To this end, I will recommend new or additional investments and shifts in several key areas.
First, to sustain U.S. air superiority, I am committed to building a fifth-generation tactical fighter capability that can be produced in quantity at sustainable cost.
Therefore, I will recommend increasing the buy of the F-35 Joint Strike Fighter from the 14 aircraft bought in '09 to 30 in FY '10, with a corresponding funding increase from $6.8 billion to $11.2 billion.
We would plan to buy 530 -- 513 F-35s over the five-year defense plan and ultimately plan to buy 2,443.
For naval aviation, we will buy 31 FA-18s in FY '10.
Second, we will retire 250 of the oldest Air Force tactical fighter aircraft in FY '10.
Third, we will end production of the F-22 fighter at 187, representing 183 planes in the current program, plus four recommended for inclusion in the FY 2009 supplemental.
Fourth, to better protect our forces and those of our allies in theater from ballistic missile attack, we will add $700 million to field more of our most capable theater missile defense systems, specifically the Terminal High Altitude Area Defense -- THAAD -- and the Standard Missile 3 programs.
Fifth, we will add $200 million to fund the conversion of six additional Aegis ships to provide ballistic missile defense capabilities.
Sixth, to improve cyberspace capabilities, we will increase the number of cyberexperts this department can train from 80 students per year to 250 per year in FY '11.
Seventh, to replace the Air Force's aging tanker fleet, we will maintain the KC-X aerial refueling tanker schedule and funding with the intent to solicit bids this summer.
Eighth, with regard to our nuclear and strategic forces, in FY '10, we will begin the replacement program for the Ohio Class Ballistic Missile Submarine program.
We will not pursue a development program for a follow-on Air Force bomber until we have a better understanding of the need, the requirement, and the technology.
We will examine all of our strategic requirements during the quadrennial defense review, the nuclear posture review and in light of post-START arms control negotiations.
Ninth -- the healthy margin of dominance at sea provided by America's existing battle fleet makes it possible and prudent to slow production of several major surface combatants and other maritime programs.
We will shift the Navy aircraft carrier program to a five-year build cycle, placing it on a more fiscally sustainable path. This will result in 10 carriers after 2040.
We will delay the Navy CJX next-generation cruiser program to revisit both the requirements and acquisition strategy.
We will delay amphibious ship and sea basing programs such as the 11th Landing Platform Dock Ship and the mobile landing platform ship to FY '11 in order to assess costs and analyze the amount of these capabilities the nation needs.
Tenth -- with regard to airlift, we will complete the production of the C-17 airlifter program this fiscal year.
Our analysis concludes that we have enough C-17s with the 205 already in the force and currently in production.
In today's environment -- forth, acquisition and contracting reform. In today's environment, maintaining our technological and conventional edge requires a dramatic change in the way we acquire military equipment.
I believe this needed reform requires three fundamental steps.
First, this department must consistently demonstrate the commitment and leadership to stop programs that significantly exceed their budget or which spend limited tax dollars to buy more capability then the nation needs.
Our conventional modernization goals should be tied to the actual and prospective capabilities of known future adversaries, not by what might be technologically feasible for a potential adversary given unlimited time and resources.
I believe the decisions I am proposing accomplish this step.
Second, we must ensure that requirements are reasonable and technology is adequately mature to allow the department to successfully execute the programs.
Again, my decisions act on this principle by terminating a number of programs where the requirements were truly in the exquisite category, and the technologies required were not reasonably available to affordably meet the program's cost or schedule goals.
Third, realistically, we must estimate -- we must estimate realistically program costs, provide program stability for the programs we initiate, adequately staff the government acquisition team and provide discipline and constant oversight.
We must constantly guard against so-called requirements creep, validate the maturity of technology at milestones, fund programs to independent cost estimates and demand stricter contract terms and conditions.
I am confident that if we stick to these steps, we will significantly improve the performance of our defense acquisition programs.
But it takes more than mere pronouncements or fancy studies or reports. It takes acting on these principles by making tough decisions and sticking to them going forward.
I welcome the legislative initiative of senators Levin and McCain to help address some of these issues, and look forward to working with the Congress in this regard.
This budget will support these goals by increasing the size of defense acquisition workforce, converting 11,000 contractors to full- time government employees, and hiring 9,000 more government acquisition professionals by 2015, beginning with 4,100 in -- in F.Y. '10.
PHILLIPS: Hard choices, Defense Secretary Robert Gates is saying, as he's talking about what he says is a fundamental shift in U.S. military priorities. I took a number of notes here with regard to troops, families, health care, the V.A., the war fighter.
Let's go ahead and bring in General Russel Honore. He's been listening to all of this, too. I want to get his take on what Gates is calling a fundamental shift. Before I ask you, General, specifically about a couple of things, any surprises as you were listening?
LT. GEN. RUSSEL HONORE, U.S. ARMY (RET.), CNN CONTRIBUTOR (via telephone): Well, you would think we just won two wars as opposed to still being in two wars. It sounds like the type of speech you would hear after a war or campaign is over. We're downsizing our future in our aircraft and our ships and delaying much modernization is what this speech sounded like to me. Over.
PHILLIPS: Now, OK, well, let's talk about that. Because I heard the word "stop" only in two instances when he was talking about the war fighter, General. He was talking about the BCTs, the combat troops, you know, that pretty much hollow out a lot of the units when they go over there at the last minute. And then I heard an end to the F-22 fighter. What did you hear a stop to that got you concerned?
HONORE: Well, we need a bigger army, not a smaller army. And we had going through, the army has gone through several years of projecting the number of brigade combat teams that we need. And it would look to me that the cuts he's going to make on will (ph) stop the fielding (ph) of at least three brigades.
Now, we still have ongoing troops in Iraq, ongoing troops in Afghanistan, ongoing troops in the Horn of Africa, ongoing troops in the Sinai, Kosovo. So, the missions are not decreasing but are increasing.
PHILLIPS: So, as the missions increase, and I'm hearing Gates talk about millions of dollars going into helicopters and pilots. He said there's a desperate need for that in Afghanistan. More money into counterterrorism with regard to fighting foreign troops. More money for intelligence, the SII. Also more money for special ops, aircraft and certain combat ships in coastal regions. Even though he's talking about an increase in funding in a number of these war- fighting assets, are you still saying it's just not enough?
HONORE: It's not enough. You know, the reason we need more helicopters now is we didn't buy enough Blackhawks to begin with. We bought Blackhawks, but what we had at the time prior to OIF (ph) (INAUDIBLE) were ten divisions. The Army actually had 18 divisions. They did not buy enough for the National Guard and the Reserve.
So again, another piece of whiteboard (ph) work in Washington. He said we're going to reorganize how the helicopters are organized, so we gave helicopters to the National Guard and Reserve. We didn't build more. We took them from active duty units and redistributed them.
We're still trying to recover from the Congress and the White House trying to reduce defense spending in a world that is more dangerous, a world where we see the Chinese are running into our ships, the North Koreans are shooting off missiles. And last year, when the Russians tromped all over the Georgians, we had the Pentagon say we can't do nothing, we are committed. We cannot be in that position if we will continue to be a world leader.
PHILLIPS: From more fighting then to troops and families, he did say he's going to increase money for the wounded, the ill, the injured, in particular brain injuries. As you and I well know, a number of men and women coming back from these various wars not getting the care they need at the V.A. The V.A. Having tremendous problems with regard to health care for our vets. An ongoing problem, as you know. He says he is going to increase the health care funding. Your reaction to that?
HONORE: I think those are good, but I question whether it's enough. You know, Kyra, the defense budget's about $550 billion. People didn't think about money in that term until we look at how much money we put on Wall Street in the recent months. $550 billion for the third largest force in the world that has more demands on it, on its people, on its infrastructure and its equipment.
We need more funding. We don't need less. And we need to invest in the future of our military to make sure they've got the best that's available and it's really (ph) for the troops when we go to war.
PHILLIPS: Lieutenant General Russel Honore, always appreciate your insight, sir. Thanks for calling in.
HONORE: OK.
PHILLIPS: A flag-draped casket of a fallen service member arriving in the United States. Should it be shown to the public? We're going to talk with a woman who went through that ordeal and read some of your e-mails.
(COMMERCIAL BREAK)
PHILLIPS: The federal government has had it up to here with mortgage scammers. Several agencies teaming up now to crack down on fraud. Seriously, how many times lately have you gotten a great offer in the mail and thought to yourself, hmm, something here doesn't seem quite right. Gerri Willis will talk more about the different scams and schemes out there next hour. And that's actually Timothy Geithner, if you're wondering who that is. We're supposed to hear from him as well also.
Also, President Obama in Istanbul, Turkey this hour. Earlier addressing the Turkish parliament in Ankara, he declared the United States is not at war with Islam and never will be.
And it was a very bloody day in Baghdad. Six car bombings and a roadside bomb attack rocked the city. Interior ministry officials report at least 32 people killed, another 123 wounded, most of them civilians. Those attacks centered mainly around the marketplaces in predominantly Shiite areas.
Well, you're about to see something that Americans have not seen since 1991. It's the flag-draped coffin of a service member killed in action overseas returning now home to Dover Air Force base. The family of Staff Sergeant Phillip Myers was the first to be asked for permission to show his coffin right here under the Pentagon's new policy. That new policy was implemented by President Obama and Defense Secretary Robert Gates in February. Sergeant Myers was 30 years old, from Hopewell, Virginia. He was decorated for outstanding service as a technician and awarded the Bronze Star for a previous tour in Iraq.
Well, Bonnie Carroll knows what it's like to see a loved one come home in a casket. In 1992, her husband, Brigadier General Tom Carroll, was killed in Alaska with seven other soldiers in an Army National Guard plane crash. She said it helped her to see the flag- draped coffin come home as she applauds the Pentagon's new policy. She's also the founder of TAPS, a group that supports military families dealing with the loss of a loved one.
She joins me live from Washington. Good to see you, Bonnie.
BONNIE CARROLL, WIDOW OF ARMY GENERAL: Hi, Kyra. Good to see you.
PHILLIPS: You know, there was coverage of Tom when he came home, a lot of media coverage. Were you OK with that?
CARROLL: I was. It was an opportunity for our community to come together and share the grief of this tragic loss. The entire senior leadership of the Alaska Army Guard was killed in that crash and, you know, when the dignified transfer occurred, when those transfer cases came off the back of the C-130, it was a welcome home, and it was an opportunity for all of us to come together in that community.
So, the Defense Department has worked with us side by side to draft a policy that is family-centric, that honors those who have served and died and gives America a chance to grieve with these families.
PHILLIPS: Do you think that previously, when there's been so much controversy, and those coffins have not been shown, that it just censors the brutality of war?
CARROLL: You know, to paraphrase from Gandhi, the greatness of a nation and its moral progression can be judged by how we care for those who have served and died, how we treat them upon their return. And what we saw last night in that dignified transfer at Dover was an honorable, respectful ceremony.
And from what I've heard, members of the media just did a beautiful job of capturing that. There was no flash photography. There was no amplification of sound. Some of the members of the media even brought condolence cards for the families. I think this policy was crafted with tremendous care.
PHILLIPS: And now -- when you started TAPS a number of years ago, now you are dealing with families that are dealing with issues just like this. I can imagine you get all types of different reactions, feelings, emotions. Do they come to you and ask you about this? How do you counsel them? What do you tell them? What are they saying to you, Bonnie? CARROLL: We tell them that their loved one's life made a difference and mattered to this country, and we grieve with them and remember the life and the service of their loved one.
PHILLIPS: We've been getting a number of e-mails, so I want you to talk directly to the people that write in about issues like this, especially sensitive issues like this. What would you say to Nancy, who writes in to us, Bonnie, "This should be kept private for the military families out of good old-fashioned respect. They're not Hollywood personalities. Let America's heroes return home in peace and dignity."
CARROLL: Oh, Nancy, you know, the DOD actually did draft a policy that honors the families' wishes. For those families who prefer not to have media coverage at this time, those transfer cases are brought off first, and the media is not moved into place until the transfer cases for the families who have requested media coverage are going to be coming out. The media will not interact with the families unless the family specifically asks that.
The Defense Department has even gone so far as to only film and photograph those dignified transfers that the family has requested. This is completely at the family's wishes. And for those who would prefer not to have media coverage, absolutely will not be photographed. For families who cannot make it to Dover for this transfer period, those photographs and the film will be made available to the family. And you know, this is part of the journey home.
PHILLIPS: A journey home that you've spent a lot of time focusing on for so many men and women in the military and their families. It's taps.org. There are counselors on hand 24/7. You can reach out to Bonnie. She's amazing. She talks to everybody that calls in, and you have such a personal touch.
And once again, we want to lift up your husband today, Brigadier General Tom Carroll. You truly go forward keeping him alive, his spirit alive and doing amazing work, Bonnie. Thanks so much for your time today.
CARROLL: Thank you, Kyra.
