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Day Two of New Offensive in Afghanistan; Michael Jackson Memorial; On Trial in Iran; Saddam Hussein Feared Iran More than U.S.; Missiles Strike Taliban Camp in Pakistan, Killing 17; Woman Turns Grief into Help for Refugees; Town Where Civil Rights Workers Killed Now Has Black Mayor;

Aired July 03, 2009 - 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: It is Friday, July 3rd. America begins the Independence Day weekend. And here are the top stories in the CNN NEWSROOM.

U.S. Marines run into an eight-hour firefight with the Taliban. Day two of the new offensive in Afghanistan.

The United Nations secretary-general arrives in Myanmar. Will he be allowed to meet jailed opposition leader Aung San Suu Kyi?

On stage 36 hours before his sudden death, it is vintage Michael Jackson on the rehearsal tape. No hint at what was to come.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

We begin with U.S. Marines setting up small operating bases and digging in today in southern Afghanistan. They're stay in Taliban territory could be a long one. The Americans met heavy Taliban resistance in the town of Garmsir, one of three towns where the Marines are setting up camp. One Marine has been killed.

CNN's Atia Abawi now from Afghanistan's capital, Kabul.

(BEGIN VIDEOTAPE)

ATIA ABAWI, CNN CORRESPONDENT (voice-over): Operation Khanjar, Strike of the Sword, began in the dark hours of Thursday morning, the biggest single offensive since the U.S. invasion of Afghanistan. Four thousand U.S. Marines recently arrived in Afghanistan supported by 650 Afghan forces. Here, the Marines prepare for the mission ahead and to the badlands of Helmand Province, an area long under the influence of the Taliban.

CAPT. DREW SCHOENMAAKER, U.S. MARINE CORPS: The aim of the air assault was to put Marine Corps forces back expeditionary-wise, out behind enemy lines. We dropped into a few places that nobody had been.

ABAWI: Helmand is one of the most volatile areas in the country. Several offensives by coalition forces in recent years have failed to expel the Taliban. Sharing a porous border with Pakistan, Helmand is reputed to be the top opium producing region area in the world, opium that is known to fund the militants.

The Taliban claims to have killed more than 30 coalition troops. The U.S. military says that is a fabrication.

This operation comes a week after the British troops went on the offensive in another part of Helmand, trying to secure and hold areas previously out of reach without reinforcements. Helmand is seen as critical to President Obama's influx of troops to Afghanistan. Until recently, there were some 7,000 coalition troops in Helmand, mainly British. Now that's more than doubled.

(END VIDEOTAPE)

HARRIS: And Atia Abawi joining us now from Kabul.

Atia, so, we're hearing that there was some sort of engagement last night. What can you tell us?

ABAWI: Tony, we talked to a spokesperson for the U.S. Marines who told us that, for the most part, they have been engaged in light, sporadic gun battles with the Taliban, with the militants. But last night, in the southeastern sector of Garmsir District, near Pakistan, they were engaged for several hours, on again, off again. They said they have abated the situation since then, but, again, it is light and sporadic engagement with the Taliban.

We were actually in Garmsir District a few months ago, and we were only able to go to the city center. This district is a big district, and we knew that more south from where we were at, the coalition troops could not reach. And now those are the areas, those are the villages that are controlled by the Taliban that these U.S. Marines, these Afghan national forces are fighting in right now -- Tony.

HARRIS: OK. Atia Abawi for us from Kabul, Afghanistan.

Atia, appreciate it. Thank you.

We'll get to Michael Jackson in just a moment, but first, going on trial in Iran. A report today says some employees of the British Embassy who were arrested for taking part in post-election protests will face prosecution.

Our Reza Sayah joins us now from the Iran desk here in NEWSROOM.

And Reza, let's be clear about this. Who are we talking about here? Are we talking about British citizens or Iranians working for the British Embassy?

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: The latter, Tony. The Iranian government cannot go after British diplomats, so what they've done is go after local employees. But the Iranian government is really going after the U.K.

I've got to fix my mike.

HARRIS: Yes. OK. Take a moment, because we need to.

All right. We'll get back to Reza in just a moment -- or is the mike switched on?

Someone tell me something.

No? OK.

We will get back to Reza in just a moment.

Well, plans for Michael Jackson's memorial are being finalized this hour. Here is what we know.

Eleven thousand tickets are available for Tuesday's event at the Staples Center in Los Angeles. In about two hours from now, they'll tell how you can actually get a ticket.

Still no word on where Jackson will be buried, but TV crews are lining up outside Forest Lawn Cemetery in Hollywood Hills.

And an investigation into Jackson's use of drugs turns up an anesthesiologist who once accompanied the entertainer on tour.

Kara Finnstrom is at the Staples Center in Los Angeles.

And Kara, look, this whole memorial service won't be cheap to pull off. What do we know about who is footing the bill? I'm thinking for traffic, security, on and on.

KARA FINNSTROM, CNN CORRESPONDENT: Well, all those details are just starting to come to light, Tony. We don't know exactly how much it's going to cost to pull all this off, but we know there are some concerns amongst county officials.

A county supervisor saying yesterday that he is really hoping that a number of philanthropic groups and perhaps people within the entertainment community will come forward. The city is already facing a deficit here and, you know, you've got to bring out porta-potties, you've got traffic control. You've got all kinds of issues when you have an event this large. So those are definitely some concerns that are going to be addressed here over the next couple of days.

HARRIS: Kara, can I stop you for just a second?

FINNSTROM: OK.

HARRIS: Are you telling me that the hope here is that part of this will be paid for through philanthropy, through donations?

FINNSTROM: Well, that's what a Los Angeles City Council member said yesterday, that he was hoping that, you know, you might have some people step forward. That's what we saw.

You know, we just had the big Lakers parade, very expensive event. And what happened in the end, because it was so expensive, a lot of different groups stepped forward and offered to pay for part of it.

This, you know, was something that was not planned, totally unexpected, his death a little over a week ago. And now, you know, they're in the throes of trying to plan a memorial service, the family is, and the city is trying to figure out how they're going to handle all the crowds.

They're saying this may well be, you know, the largest memorial service that Los Angeles has ever seen. So, I mean, just a lot of planning and a lot of logistics that go around that. And I think everyone is kind of taking it a step at a time. But this is where it is going to happen, right here.

HARRIS: Right. A hat in hand operation would be very unfortunate.

What do we know, Kara, about the burial plans?

FINNSTROM: Burial plans, we don't know anything about, officially, yet. Jermaine Jackson saying yesterday that, you know, he's hoping it could be at Neverland, that he feels that would be a fitting tribute.

Of course, we do know that in California, that's not allowed, you know, a burial on a private property like that. He says that the people who make the rules may be able to change them.

Joe Jackson has said that the burial won't take place at Neverland, but no other official details on that. That's one of the things we're waiting to hear.

We are expecting maybe to get some answers, though, about this, the big event taking place here. Just off to the side, in a couple hours, Tony -- you can see the barricades set up over there and you can see the police cars -- there is going to be a press conference held there, and police are expected to tell us -- or, rather, representatives are expected to tell us how those fans can get a hold of the tickets.

You mentioned 11,000 of them are going to be available. Obviously, there are more fans than that that are going to want to get a hold of these. So they're going to talk about how they can get a hold of these tickets.

And also, Tony, we're hoping to get some details of what exactly we're going to see inside the Staples Center, because, you know, we don't know yet if there will be performances, if we'll hear from some speakers. You know, how that will take shape. So, hopefully we'll get some more answers a couple hours from now.

HARRIS: Well, OK. So what time is that news conference at least scheduled for?

FINNSTROM: Two hours from now.

HARRIS: OK, two hours. And about 1:00 p.m. Eastern Time. All right. Kara Finnstrom for us.

Boy, this cannot be a hat in hand operation.

Kara, appreciate it. Thank you.

Michael Jackson once toured with this anesthesiologist in tow. Chief Medical Correspondent Dr. Sanjay Gupta tracked him down while investigating reports that Jackson used powerful intravenous drugs in order to get some sleep.

Don't miss our exclusive report coming up in the next hour, right here in the CNN NEWSROOM.

And tonight, at 8:00 p.m. Eastern Time, a Campbell Brown special. Go inside the Michael Jackson investigation, look back at his life, tragic death, and plans to say good-bye. A special Campbell Brown, that's tonight at 8:00 p.m. Eastern Time.

And up next, probing the mind of Saddam Hussein. The FBI releases notes from its interrogation of the fallen Iraqi leader.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: So this weekend we celebrate Independence Day. Here's a question for you. When is the last time you read the Declaration of Independence? Do you know where to find it?

I do. Just go to CNN.com/tony. Here's what we've done -- we put the entire document on my blog page.

Take a moment to read Thomas Jefferson's handy work and tell me what you think.

What does independence mean to you? Who is the most patriotic person you know? Once again, CNN.com/tony.

Vice President Joe Biden will spend Independence Day in Baghdad. He landed in the Iraqi capital yesterday. He is meeting with U.S. and Iraqi military officials, and he will speak to the troops tomorrow.

The White House says he's in Iraq to stress Washington's commitment to the drawdown of American forces. This week marked a major milestone in the war when U.S. troops pulled out of major Iraqi cities.

And going on trial in Iran. A report today says some employees of the British Embassy who were arrested for taking part in post- election protests will face prosecution.

Reza Sayah back from the Iran desk here in the NEWSROOM. And Reza, as we were mentioning before, let's be clear about this. Who are these people that we are talking about? Are they British citizens, or Iranians working for the British Embassy in Iran?

SAYAH: Tony, these are not British citizens. The Iranian government cannot touch British citizens because of diplomatic immunity.

HARRIS: That's right.

SAYAH: So what they've done is go after local employees who work for the British Embassy. But all indications are the Iranian government is putting tremendous pressure on the U.K. for the past couple of weeks.

They have been on a very aggressive campaign and public campaign to blame the post-election turmoil in Iran on the British government, saying they designed a velvet resolution. That sort of talk, that campaign continued today, and kicked into high gear at Friday prayers in Tehran.

Speaking at Friday prayers today, hard-line cleric Ayatollah Ahmad Jannati. Here's what he had to say, some fiery words aimed at the U.K. Take a listen.

(BEGIN VIDEO CLIP)

AHMAD JANNATI, HEAD OF GUARDIAN COUNCIL (through translator): Do you expect that by staging a street riot after the election Iran would become like Ukraine and Georgia, and then the government will be toppled and the government assigned by you would take over? Your idiocy and stupidity is really limitless?

(END VIDEO CLIP)

SAYAH: Some fiery words there by Ayatollah Ahmad Jannati.

Not, it's not clear how many local employees of the British Embassy are still in custody. According to Iranian officials, they released all but one. But the British Foreign Office telling CNN that two local employees still in custody.

Tony, those two individuals in the middle of a diplomatic face- off between London and Tehran.

HARRIS: Boy, I've got to tell you, you hear some of the rhetoric coming out of the Friday prayers, and you wonder how you reach the Iranians. How do you reach that government?

But anyway, that's another topic for another discussion.

What's been the British government's response to all of this, Reza?

SAYAH: Well, as you might expect, they are not happy. Today, the foreign office released this statement, and this is what they had to say -- "We are concerned by these reports and are investigating. Allegations that our staff were involved in fomenting unrest are wholly without foundation. We will be seeking an urgent explanation from the Iranians."

British Foreign Minister David Miliband has also indicated that he'll be looking for answers from the Iranian government. On Sunday, "FAREED ZAKARIA GPS," David Miliband will appear.

Why is the Iranian government so angry at the U.K.? Here's what Mr. Milband had to say.

(BEGIN VIDEO CLIP)

FAREED ZAKARIA, HOST, "FAREED ZAKARIA GPS": There's an article in "The Daily Telegraph" that says that perhaps Britain was singled out by Tehran because of Barack Obama. And the logic goes that Obama presented this much friendlier face of America, presented a kind of an offer of negotiation, and the Iranians were left with no one to demonize. And so they fell back on the little Satan, given that the great Satan was smiling too much at them.

DAVID MILIBAND, BRITISH FOREIGN MINISTER: Well, I think that there's history that means there are reasons why Britain is picked on, and it's deep in the Iranian rhetoric. However, I think that we've been clear for some time that a policy of engagement from America to Iran was much, much needed. And the demonization that's happened for 30 years has been exacerbated by the fact that America wasn't present, in my view, in Iran.

And what Barack Obama has done is make it harder to demonize. There's some demonization of America still going on, let's not kid ourselves. But he's made it much, much harder.

(END VIDEO CLIP)

SAYAH: That was British Foreign Minister David Miliband appearing on "FAREED ZAKARIA GPS." You can catch that interview 1:00 p.m. on Sunday.

But Tony, this is all part of the post-election fallout in Tehran. The street protests appear to be over, but now you're seeing diplomatic relations between Iran and a number of countries, specifically the U.K., deteriorating dramatically.

HARRIS: Terrific development certainly worth following.

Reza Sayah for us at our Iran Desk.

Reza, good to see you. Thank you.

So, you say you need some help wading through all these financial ups and downs? CNN Personal finance Editor Gerri Willis answers your e-mail questions next, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: OK. It is Friday, and CNN personal finance editor Gerri Willis is answering your e-mails.

Let's get right to the first one here. It's from Matt. And he writes, "With so many experts predicting a future increase in inflation, what investments should I be looking into so that my money maintains its value?"

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, Matt, that's a great question. First, a little explainer.

Inflation is a sustained increase in prices for the stuff you buy. So, when prices rise, your dollar buys less, you lose some of the value of your money.

Here's what you don't want to invest too heavily in -- long-term CDs and bonds. However, there is a type of bond that's designed to preserve the buying power of your investment. Those bonds are called Treasury Inflation Protected Securities, or TIPS.

With TIPS, the principle and interest increase with inflation. You can buy TIPS directly from the government at TreasuryDirect.gov or through a bank or a broker.

Our next question comes from Kenvar (ph). Kenvar (ph) writes, "Can I use the first-time buyer credit as a down payment on my first home?"

Well, Kenvar (ph), the answer is yes. The tax credit can be used to pay a portion of your down payment. You must have a loan that's assured by the Federal Housing Administration, and you can't use the credit for the first 3.5 percent of the down payment. That has to come from your own funds. You can also use the tax credit to help pay settlement fees or other closing costs, or pay discount points to buy down the interest rate on your loan.

For more info, go to FederalHousingTaxCredit.com.

And finally, a question from Lorenzo, who asks, "My daughter will have over $100,000 of loans by the time she finishes her elementary education degree. Are there any programs to help her pay the loans? Teachers don't get paid well enough to have this type of debt."

Well, Lorenzo, here's a good case where you really want to get a handle on what careers pay well, and do that before you go racking up a lot of college loan debt. If your daughter becomes a teacher in an elementary school, though, that serves a low-income family, she can have a portion of her Perkins loan forgiven. For each of the first five years she teaches, a portion of her loan amount will be reduced.

Contact your school's and district's administration to see which schools are eligible.

Math and science teachers, too, who work in high-need schools can also get up to $17,500 forgiven from their Stafford loan. Generally, you have to have worked as a teacher for five consecutive years.

Go to studentaid.ed.gov for more info. The American Federation of Teachers also maintains a list of other loan forgiveness programs for teachers, and those are at AFC.org.

And, of course, if you have any questions, send them to us at gerri@cnn.com. We love hearing from you.

All right, Gerri. Appreciate it. Thank you.

And be sure to watch Gerri tomorrow morning for "YOUR BOTTOM LINE." She will show you ways to entertain for less this holiday weekend. "YOUR BOTTOM LINE," Saturdays at 9:30 a.m. Eastern Time.

And check out our special report, "America's Money Crisis." That's at CNNMoney.com.

Is North Korea preparing to test-fire a long-range missile? And does it have Hawaii in its sights?

Michael Jackson, his final days, the looming questions. We will have the latest developments in just a few moments.

(COMMERCIAL BREAK)

HARRIS: U.N. Secretary-General Ban Ki-moon is in Myanmar today, but the ruling junta rejected his request to meet with Aung San Suu Kyi, the imprisoned opposition leader.

CNN's Dan Rivers watching developments from Bangkok.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT: U.N. Secretary-General Ban Ki- moon has arrived in Myanmar and almost immediately suffered a setback. We're being told that he has been denied permission to meet the Nobel Peace laureate Aung San Suu Kyi, who has been under house arrest for much of the last few decades and who has become an icon, really, of the pro-democracy struggle in this repressed country.

We do understand that Mr. Ban met with the senior general in the junta at Tianshui, and that he's also due to meet with four senior executives from the National League for Democracy, Aung San Suu Kyi's party, which, of course, won the 1990 election that the military then ignored the results of. But this will be a humiliating defeat if it stands.

He will remain in the country until Saturday evening, so there is time for him to perhaps persuade them to get an audience with Aung San Suu Kyi, who remains behind bars in a house in the grounds of Insein Prison. Her trial was due to resume today. The trial, of course, which is facing five years in prison after an American man, John Yetel (ph) broke into her compound. That trial date has now been put back another week.

The timing was really rather awkward. It was due to resume almost exactly as Ban Ki-moon arrived in Myanmar. Now it's been postponed, we're told, because the court hadn't received the necessary paperwork from another court. Some analysts here will speculate that perhaps this was done on the orders of the military junta who were uneasy about that trial taking place and wanted her key defense witnesses, a lawyer, a friend of Aung San Suu Kyi giving evidence.

Dan Rivers, CNN, Bangkok.

(END VIDEOTAPE)

HARRIS: And we're watching North Korea. Will it fire a long- range missile in the direction of Hawaii around this Independence Day holiday?

Well, the regime, as you know, launched four short-range missiles on Thursday, perhaps a prelude to something bigger, but several Defense Department officials say a long-range launch does not appear imminent. North Korea grew more hostile in May when the regime announced an underground nuclear test. The U.S. and other nations went to the United Nations to tighten sanctions.

The head of the Organization of American States, the OAS, is arriving in Honduras today. The Central American nation, site of a coup last weekend. OAS Secretary-General Jose Miguel Insulza wants Honduras to restore exiled President Miguel Zelaya by -- Manuel Zelaya by tomorrow.

Insulza doesn't appear optimistic that that will in fact happen. The man who replaced Zelaya as president, Roberto Micheletti, says he is willing to move up elections to November. That's his first hint at any possible compromise.

Saddam Hussein considered Iran a bigger threat to his country than the United States. That's according to an FBI agent who interviewed the former Iraqi leader.

CNN's Brianna Keilar has more on the newly released FBI notes.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT (voice-over): June 11, 2004. Six months after U.S. troops captured Saddam Hussein, he sat down with an Arabic-speaking FBI interrogator. Newly declassified documents reveal what he told agent George Piro, that he considered Iran to be the most significant threat facing Iraq, much more than the U.S.

Wanting to keep Iran in the dark about his weapons capabilities or lack thereof, Hussein said he stopped inspectors from checking Iraq for weapons of mass destruction because he feared U.N. inspectors would have directly identified to the Iranians where to inflict maximum damage to Iraq. Convinced Iran intended to annex southern Iraq, he bet that keeping the U.N. out was safer than showing Iran he was bluffing.

The new information scares with what Piro told CBS's "60 Minutes" in 2008.

GEORGE PIRO, FBI SPECIAL AGENT: He told me he initially miscalculated President Bush and President Bush's intentions. He thought the United States would retaliate with the same type of attack as we did in 1998.

UNIDENTIFIED MALE: Some kind of an air campaign.

PIRO: Yes. And he could survive that. He survived that once.

KEILAR: Hussein told Piro the United States used September 11 as an excuse to invade Iraq and had lost sight of the cause of 9/11: al Qaeda. He called Osama bin Laden a zealot, and despite U.S. claims Iraq had contact with al Qaeda, Hussein said the Iraqi government did not cooperate with bin Laden, that he did not have the same belief or vision as al Qaeda's leader.

(END VIDEOTAPE)

HARRIS: Very interesting. Brianna Keilar joining us now from the White House. And Brianna, I've just got time for one quick question for you. You know, there have been many reports that Saddam Hussein often used body doubles so he could avoid being assassinated. He called that nonsense. What did he tell the FBI?

KEILAR: He said absolutely that it wasn't true, Tony. In fact, there have also been reports that his sons used body doubles. And he said, as well, they did not. But he did say -- and this was pretty interesting, Tony -- that he did sleep in a different bed every night for safety reasons. We'd heard reports of that, and he confirmed that was true.

HARRIS: Wow, all right. Brianna Keilar for us at the White House. Brianna, thank you.

You know, with the U.S. offensive in southern Afghanistan in its second day now, the U.S. is keeping pressure on the Taliban next door in Pakistan. A suspected American drone attack killed at least 15 people in South Waziristan. Nic Robertson is live in Islamabad now for us.

And Nic, we're hearing about a military helicopter crash. What can you tell us about that?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, a Pakistani military helicopter has crashed just outside the border town of Peshawar, about 60 (ph) miles outside of the town. Twenty-six servicemen, we are told, are onboard that helicopter, flying towards the border with Pakistan.

We're told by the Pakistani army that it was a technical fault that brought the helicopter down, that it wasn't under any kind of attack. It is routine for the army to use helicopters to transport some of their elite troops, often using those helicopters to insert them behind the Taliban to gain a tactical advantage. But it's not clear exactly where these troops were going, what they were going to do, but 26 died. Quoting the Pakistani military, the helicopter came down for technical reasons -- Tony.

HARRIS: OK, and Nic, and back to the drone attack now, the drone strike. How many missiles were fired, according to the Pakistani military, in this most recent drone strike?

ROBERTSON: Well, we're getting our information from two different sources here, Tony. We're getting it from Pakistani intelligence sources and the Taliban. And quite incredibly, we're finding here in this particular case, both sources are agreeing, three missiles fired from what they both say they believe was a U.S. drone fired into a Baitullah Mehsud training camp. This guy is the number one Taliban leader inside Pakistan. He's the number one enemy of the Pakistani military right now.

So, the U.S. help that they're getting here is a clearly a bonus. And what we're hearing from the Taliban, that they were Taliban that were killed. The Taliban saying 17 killed, that there were three buildings hit, a communications headquarters, an ammo store and a command and control command headquarters, as well. So, it seems to have been a very direct, well directed strike because even the Taliban are saying it's them that were hit -- Tony.

HARRIS: Yes, and in recent history, correct me if I'm wrong, here, Nic, suggests that the villagers will be slow to pick up the dead from this most recent attack for burial, is that correct?

ROBERTSON: Yes, you bet. And that's what the Taliban are saying, as well. The local villagers didn't want to go out and pick up the bodies because just a week ago, when there was another strike against another one of this commander Baitullah Mehsud's hideouts, training camps, six people killed by a strike in the morning. The villagers were burying the dead in the evening, and bang, the drones came back and 60 people were killed at the funeral.

So, clearly, the Taliban here learning a lesson. Don't get out in the open because you're going to be open to another strike -- Tony.

HARRIS: All right. CNN's Nic Robertson for us live from Islamabad. Nic, as always, great to see you. Thank you.

Our senior White House correspondent now, Ed Henry, is talking about the economy and the president's health care plan on CNN Radio. It's "44 with Ed Henry." Ed's guest this hour, Representative Tom Price, the physician adamantly against the president's health plan. Let's listen in a bit.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: And they say basically the Republican Party doesn't want to do anything on health reform. What do you say to that?

REP. TOM PRICE (R), GEORGIA: Well, that's demagoguery of the first order, because there isn't a single challenge out there that we're facing right now that the Republican Party is not interested in solving the problem with positive solutions. There's nothing where we believe the status quo is acceptable.

But what we do believe is that we ought to be moving in the right direction, and the right direction for health care means that we need to protect the patient and his or her family and the ability to make independent medical decisions. The president wants to put in place a program, as does the speaker of the House, that would remove the ability to make those independent medical decisions. And that's not where we believe the American people want to go.

HENRY: So, tell me what the Republican plan will be, then. What exactly do you want to do? If you say the status quo is not acceptable, what do you want to do to reform the system, insure more people, but also bring those costs down?

PRICE: A couple big things. One is that you're right. There are 45 or 46 million folks out there that at some point over the course of the last year have not been able to maintain their health insurance. And we've got to get those folks covered.

The way that you do that in a responsible way is to make it so that it's financially attractive and feasible and foolish for anybody not to be insured. And you do that through the tax code, through a system of deductions or credits or advanceable credits or refundable advanceable credits, which means that you actually allow people to purchase insurance with tax money, taxpayer money. and make it so that they own and control their insurance policy so that the system moves in the direction that patients want it to move.

The real key is who is going to decide? Who's going to make those personal medical decisions? We believe it ought to be patients and families along with compassionate and caring doctors. The president and the speaker of the House clearly believe it ought to be the federal government.

HENRY: Now, the president said -- he said at a health care town hall meeting this week that that's not true, that he does not want the government to take over those decisions. I mean, what evidence do you have in the plans that are up there on the Hill that show that the federal government really will make those decisions instead of doctors? The Democrats insist it's not true.

PRICE: Well, all I have to look at is the bill that the president has said he supports, which is the bill that was introduced in the House of Representatives and was introduced two weeks go. And that bill itself defines clearly how the federal government will be taking over the health care system in our nation by defining specifically what you and I and every single American is able to even to access in terms of the health coverage they are going to make illegal if this bill were to go through.

Make illegal some of the wonderfully robust things that are out there in the marketplace that allow people to have the kind of insurance that they want, not the kind of insurance that the president wants them to have.

HARRIS: This is a really good conversation. I hate to interrupt it. But what we're going to do, as you know, we are really focusing on health care, the debate over reform, with Elizabeth Cohen doing a lot of the real heavy lifting on this for us. Some interesting comments there from Georgia Representative Tom Price.

We will grab that interview and we will dissect it here. If we don't get to it today, we'll certainly do it early next week because we've been trying desperately to get an idea, a real handle on what Republicans would like to see in the way of health care reform. And some hints there from Georgia Representative Tom Price.

Let me give you the phone number if you'd like to join in to Ed Henry's radio show, "44 with Ed Henry." It is 877 -- correct me in the control room if I'm incorrect on this. 877-266-4189. OK. Great. Terrific.

Still to come in the NEWSROOM, Michael Jackson, his music, your memories. IReporters sending thousands of pictures and videos. You'll see them next.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

HARRIS: That was a great song. Some remarkable video to share with you now. Have a look.

(VIDEO CLIP -- MICHAEL JACKSON'S REHEARSAL FOR "THIS IS IT" TOUR)

HARRIS: Video of Michael Jackson working it out. Working, working, working day and night. Working it out. Rehearsing his songs, choreography last week. Just two days later, he was dead. The promoter of those concerts says the video shows Jackson was energetic and seemingly healthy as he geared up for a grueling series of 50 concerts.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN HOST, "ANDERSON COOPER 360": As part of the business proposition, Michael had to undergo a medical exam to get insurance.

RANDY PHILLIPS, PRESIDENT/CEO, AEG LIVE: Correct.

COOPER: Do you have the results of that exam? Was there a drug test for that exam?

PHILLIPS: Well, what happened is the insurance carrier -- and I know this is important for people to realize -- the insurance carrier sent a doctor out from New York named Dr. David Slabith (ph), I believe, and independent of us. We had nothing to do with it. He examined Michael for about five hours at his house, and I think they went somewhere for some other tests. And I'm sure there was a blood test.

We're obviously not privy to the patient/doctor relationship or that information, but the insurance broker told us that he passed with flying colors, OK, and that the only issue was of some slight hay fever.

COOPER: So, as you have been watching over the last several days allegations come out about drug use, what do you think? PHILLIPS: Well, you know, I don't know because I wasn't with him 24/7. I've spent a lot of time with him, OK. All I know is the Michael Jackson that hugged me and said good night was a healthy, vibrant human being about to undertake the greatest undertaking of his life, OK?

And something happened between 12:30 when he left us and the morning when I had to rush to the hospital when I got the first call.

(END VIDEO CLIP)

HARRIS: Boy, how many people are involved in all of this surrounding Michael Jackson? That was Randy Phillips. He is also co- coordinating Tuesday's public memorial for Jackson. His company plans a briefing today to explain how tickets will be made available to the public.

And I've got to tell you, personal tributes are really flooding in, and we certainly want to hear from you about what Michael Jackson means, meant to you. Share your memories. Nicole Lapin is here with a look at some of the best iReports. What are you getting there, Nicole?

NICOLE LAPIN, CNN CORRESPONDENT: Thousands and thousands. And it's amazing, Tony. It's just not stopping this week, either. I want to show you a couple really good ones. Mark Blackwell sent in these rare pictures of Jackson meeting with President Bush in 1980 (sic).

How cool is this? He said he was a reporter at "Spin" magazine in the early '90s. One of his first assignments was going there to the White House to cover Michael Jackson.

HARRIS: Nice, nice.

LAPIN: Yes. And this is coming to us actually from Japan. This is from a promoter who promoted Jackson in Japan of some of his touring there, of the fans in Japan. They sent us video iReports of some of the memorabilia. This was all done by Daniel Smith (ph), Tony.

And this is a cool picture, as well. This came in from Gail Davis (ph) and Julie Snyder (ph) of David Bowie and Michael Jackson. This was backstage in 1983 at the L.A. Forum during the Serious Moonlight concert tour for David Bowie.

HARRIS: "...the serious moonlight" -- that was a great -- yes, yes.

LAPIN: There you go. So, a lot of really interesting takes, and we just keep on getting them in. Ireport.com is where you can send us your own thoughts, your own memories. And so many people have from all pockets of the globe.

HARRIS: Well, and I think we still have the little blog that I wrote, I guess it was a week ago today, and we posted it. And if you want to respond to that, I believe it's still up. LAPIN: CNN.com, slash...

HARRIS: We changed it, didn't we?

LAPIN: Tony.

HARRIS: Tony? OK.

LAPIN: It's easy. It's your name, right?

HARRIS: Well, you used to have to click on my head or something, and now you just have to go to CNN.com/tony. Nicole, appreciate it. Thank you.

LAPIN: You're welcome.

HARRIS: All right. And be sure to tune in next Tuesday as we bring you special coverage of the Michael Jackson memorial service.

(COMMERCIAL BREAK)

HARRIS: Carolyn Manning lost a loved one on 9/11, and that tragedy linked her to many other struggling with loss and connected her to a worldwide crisis. Her work helping refugees coming to America makes Carolyn Manning this week's "CNN Hero."

(BEGIN VIDEOTAPE)

ANNOUNCER: This is "CNN Heroes."

UNIDENTIFIED MALE: We have an explosion at building number one. There's smoke all over the place.

UNIDENTIFIED FEMALE: One of the towers just went down.

CAROLYN MANNING, "CNN HERO": My brother-in-law was killed in Tower One on September 11. After September 11, I saw a picture of an Afghan family who had also lost a family member because of the Taliban, and they had to flee their country.

Our family has five kids. We lost a family member, too. We just naturally went from that to, let's show the refugees that we welcome them.

My name's Carolyn Manning, and I started the Welcome to America Project to help refugees in Phoenix, Arizona.

How are you? Are you doing well?

The families that we help come from places where there's been war and genocide, and some refugees have never lived with indoor plumbing, and they've never flushed a toilet. All right, let's go. The Welcome to America Project is the community. And it operates by community volunteers. My husband and I many a time have been out here pulling furniture in. Before work, after work. This is our life.

UNIDENTIFIED MALE: Thank you very much for all your help.

MANNING: All right, let's go to the next family.

When they step foot in the United States, they have been invited here. I want the refugees to feel that this is their home.

Welcome to America.

And that's what America has been built on. It's our history. It's who we are. And they're part of it.

ANNOUNCER: Tell us about your hero at CNN.com/heroes.

(END VIDEOTAPE)

HARRIS: And for more about the Welcome to America Project or to nominate your own "CNN Hero," just logon to CNN.com/heroes. And July, we should add here, is the last month to get your nominations in, so don't wait to tell us about your "CNN Hero."

An historic event in Philadelphia, Mississippi, this morning. James Young being sworn in as mayor. Young is black, and Philadelphia, Mississippi, as you may know, is where three civil rights workers, Schwerner, Goodman and Chaney, were murdered during the turbulent '60s. Here's our Ed Lavandera.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT: James Young still considers himself a small-town guy, but since he was elected the first black mayor of Philadelphia, Mississippi, he's become a powerful symbol to many people across the country.

MAYOR JAMES YOUNG, PHILADELPHIA, MISSISSIPPI: There are times and seasons, I think, for everything.

LAVANDERA (voice-over): As we sat on the porch of a friend's home in Philadelphia just days after the election in May, the power of the moment hit him. A black man elected mayor of the Mississippi town that was the center of white-hot racism during the civil rights era.

YOUNG: The places where we were locked out, I'm going to have a key. The places that we couldn't go, I've got the key. When you've been treated the way we've been treated, OK.

LAVANDERA: After our interview, James Young says he got a call from the actor Jamie Foxx, who invited him and his daughter to the BET Awards show.

JAMIE FOXX, ACTOR: I saw his story and I said, please come out here and bless us in a completely different way.

LAVANDERA: There he was in the spotlight, receiving a standing ovation and the Community Humanitarian Award.

FOXX: Mayor James Young, you make us proud, man. LAVANDERA: Quite a ride for a man whose earliest memories of growing up in Philadelphia are of the Ku Klux Klan roaming his neighborhood streets. He started out as a hospital housekeeper, then worked his way up to become the city's EMT director. Now he's the most important public official in town.

YOUNG: But it also sends a message to those who said what cannot be done. If you prepare yourself, if you keep yourself in the right frame of mind, anything is possible in America. Anything is possible.

LAVANDERA: James Young will be sworn in as mayor today. He says it's a moment that proves hearts and minds can change, even in this once deeply segregated town.

YOUNG: Who would have thought that a little country boy like me would be mayor of Philadelphia, Mississippi, in '09? I couldn't even wrote that in a fairy tale, or it would have been a big fairy tale. But that's why it's so overwhelming to be a part of this history.

LAVANDERA (on camera): James Young tells me the attention he's received since that interview first aired in May has been overwhelming, strange and truly humbling. But he does also realize that after this Fourth of July weekend, the hard work really begins.

Ed Lavandera, CNN, Dallas.

(END VIDEOTAPE)

HARRIS: Boy, what a story.

Coming up in the next hour of CNN NEWSROOM, do you like live jazz? We will take you to the Essence Music Festival in New Orleans this weekend.

And necessity, as the saying goes, is the mother of invention. We will find a mom who found it necessary to launch a brand-new business out of a baby food jar.

(COMMERCIAL BREAK)

HARRIS: You know, there's a place where you can see George Washington, Abe Lincoln and Barack Obama all on the same stage. It's Disney World in Florida, and our own Rob Marciano is right in the middle of it. You know what, Rob, we saw your name and Orlando, and we were wondering what scam you'd pulled off this time. This one is pretty good. What's going on, Rob?

ROB MARCIANO, CNN CORRESPONDENT: Fireworks. I don't know if you heard that, but there ere are fireworks. That's what happens here at the Magic Kingdom. You never know when fireworks are going off. Believe it or not, this wasn't my pitch, Tony, but nonetheless, I'm happy to participate and do the investigative report that the network surely needed when it comes to what's behind me, which is the Hall of Presidents, as you mentioned.

You can go in there and watch all of the presidents animatronically talk about history. It's a great history lesson, and they obviously had to add a new one this year with the induction of President Barack Obama. So, we got a little look at all the things that are involved with that. Imagineers is what they are called. So, that's the reason we're here. We're celebrating the Fourth of July that way. Plus, also, 1,000 immigrants, Tony, were sworn in today to become naturalized citizens. they're tooting the horn, and even Mickey Mouse is dressed up in red, white and blue. That's the breaking news I'm here to tell you about. And we're out of time, buddy. I'll toss it back to you.

HARRIS: All right, Rob. Appreciate it. Thank you.