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CIA's Terror Tactics; Reality Show Contestant and Suspect in Wife's Death Found Hanged; Massive Fires Burn Across Greece; End of the Road for Cash for Clunkers; MacAskill Defends Decision to Release Lockerbie Bomber in Scottish Parliament Session; Hurricane Bill's Victims; The Cushion and Benefits New Orleans Provides in Current State; Life After Unemployment Benefits

Aired August 24, 2009 - 10:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Let's get a look at some of the top stories happening right now. Some very, very somber video here. Rescue teams have found two missing firefighters in Buffalo. They disappeared after the first floor of a building collapsed during a blaze this morning. There are also reports a third person that may still be trapped in the building's basement. The firefighters were putting out a fire in a convenient store when it collapsed.

Scotland's parliament has called an emergency meeting to question the decision to release the Lockerbie bomber. He was released last week for compassionate reasons. His release sparked global outrage when he receive a hero's welcome in Libya and when rumors began circulating about a deal with the British government.

And a judge has approve the deal between Michael Jackson's estate and a concert promoter to host an exhibition of the star's memorabilia. The deal is close to bring in about $6 million for the Jackson estate. The judge says there's no doubt the arrangement is the estate's best interest.

Alleged secret of the CIA. A gun, an electric drill and the interrogation of the terror suspect. Today, a new government report exposed a chilling new claims of abuse and raises significant questions about the war on terror.

CNN's Elaine Quijano joining us now from Washington with a closer look at all of this.

So, Elaine, what exactly do we expect to learn today?

QUIJANO: Well, Heidi, according to knowledgeable sources familiar with this report, we know that in separate incidents CIA interrogators threatened **. Now he is the man suspected of plotting the deadly bombing of the "USS Cole." Sources confirm that one interrogation session involve a gun, another an electric drill and both were meant to scare the al-Qaeda prisoner into giving up information

Also, "Newsweek" magazine has reported that mock executions were staged, including one where a gun was fired in a room next to a detainee to make him believe that another prisoner had been killed.

Heidi?

COLLINS: Well, the report, we know, is coming out as part of a lawsuit by the American Civil Liberties Union, right? The ACLU?

QUIJANO: Right.

COLLINS: So what's been their reaction to all of this? And do CIA say?

QUIJANO: Well, the ACLU released a written statement calling the tactics under the Bush administration, quote, "not only reprehensible, but illegal." The statement went on to say that the American public has the right to know the full truth about the, quote, "torture that was committed in its name." Now we should made clear, Heidi, that even though the government had authorized controversial techniques like waterboarding, the use of a gun and drill fell outside approved tactics. And a CIA spokesman said that the agency in no way endorsed behavior, however infrequent, that went beyond formal guidance.

Heidi?

COLLINS: Yes. But so now there are some very, very tough decisions that the Obama administration is actually going to have to decide here. They've left open the possibility of a possible criminal investigation into these policies.

What's the very latest on that?

QUIJANO: Well, Attorney General Eric Holder is expected to announce soon whether he'll appoint a special prosecutor, Heidi, that investigates the Bush administration's interrogation policies. So far, no word on just how soon he could make that announcement, but certainly a possibility that's out there.

Heidi?

COLLINS: Yes. So they must look now to the present. What do we know about the Obama administration, possibly creating an elite team of interrogators? Because we have to remember that we are at war in two different theaters right now. Some of this interrogating clearly is still going on. You know, how do we handle all of that?

QUIJANO: Well, a senior administration official this morning, Heidi, confirms that President Obama did sign off on a recommendation to create an inter-agency what they're calling high value detainee interrogation group. This official says that the National Security Council will have oversight of the group but the official says that it's going to be housed at the FBI, led by an FBI official, and draw on interrogators from defense, intelligence and law enforcement. Heidi?

COLLINS: OK. We will continue to watch for more details of this report later on today. Elaine Quijano, thank you.

QUIJANO: Sure. COLLINS: Here's a closer look too at the CIA. It was created back in 1947 to carry on the secretive intelligence work of the World War II agency, OSS. In the mid 1970s, Congressional investigations uncovered a history of assassinations and bribery. That led to new limits on its power and on the level of oversight. This powers expanded once again under President Ronald Reagan in the 1980s. And then, faced new embarrassments in the 1990s.

Those embarrassments include a CIA analyst Aldrich Ames working for the Soviets and the agencies failure to accurately monitor the development of nuclear weapons in India and Pakistan. The agency have seen a new urgency since the 9/11 attacks but has also faced serious questions over its case with the Iraq war and its subsequent handling of terrorist suspects.

On our blog today, in fact, a new report that we've been telling you about is going to detail the abuses inside the secret CIA prison. So what do you think about it? Do you think this type of information could actually put U.S. troops in war zones in even more danger? We'd love to know your thoughts. So go ahead and post them on our blog at cnn.com/heidi.

After initial praise from international observers, rumors are now beginning to circulate about widespread fraud in Afghanistan's presidential elections.

CNN's Atia Abawi has more now from Kabul, Afghanistan. So Atia, are we getting any of these preliminary results just yet?

ATIA ABAWI, CNN CORRESPONDENT: Well, we hear that they are trickling in at the moment and we're waiting to hear from an independent commission as to where and who is supporting whom for this campaign at the moment. We had an interview earlier today with Dr. Abdullah Abdullah, a candidate in this election. And he's accusing the incumbent President Karzai's campaign of mass fraud. He said that a lot of it is at stake, not just for Afghans but also Americans. Let's listen to what he has to say.

(BEGIN VIDEO CLIP)

DR. ABDULLAH ABDULLAH, AFGHAN PRESIDENTIAL CANDIDATE: I think that survival of the cornerstone is at stake and I don't see a future for this country. The level of disappointment of the people will reach to a stage that you cannot reverse it. Nobody can reverse it. And also the public opinion back in the United States, say, for example, it will lead to a stage where they will think that it might be a mission impossible.

(END VIDEO CLIP)

ABAWI: Well, we did get a response from President Karzai's campaign and they are saying that Dr. Abdullah, this is an all out propaganda war that is undermining the process of the ECC, that is the Electoral Complaints Commission by by passing the legal institutions and making it an all out media campaign. It's irresponsible and disrespectful to the process, the institution, and the people who have voted. And the spokesperson also told us that President Karzai is refraining from comment at the moment because he wants these institutions to actually go ahead and go about their jobs without interruption. Heidi -

COLLINS: All right. Reporting live from Afghanistan this morning. We sure do appreciate that. Atia Abawi, thank you.

I want to remind everybody, beginning September 7th, Anderson Cooper takes you inside Afghanistan live from the battle zone. An "AC 360" special report beginning September 7th only here on CNN.

Firefighters working around the clock to win the battle over massive wildfires in Greece. But their efforts alone may not be alone and more help may be needed.

ROB MARCIANO, AMS METEOROLOGIST: Hurricane Bill is now a tropical storm, heading out to sea but heavy surf but still affecting parts of the East Coast. When will the seas calm down and where is Bill going next? That's coming up when the CNN NEWSROOM comes right back.

(COMMERCIAL BREAK)

COLLINS: The search is over for a reality show contestant accused of killing his wife, but a new search is now under way actually for a woman who may have helped him elude authorities. Ryan Jenkins was found hanged in a motel room in Hope, British Columbia. Reporter Norma Reid of CTV is joining us now with more on this story. Norma, what's the very latest now?

NORMA REID, REPORTER, CTV: Well, in order to get the very latest, let's take you back to Thursday. That's when Ryan Jenkins and a mystery woman showed up here at this motel. Jenkins stayed inside the car. The mystery woman went alone inside the motel and booked the room, paid in cash, and then fled. She took off. We haven't seen or heard of her since.

Jenkins, by the way, stayed inside, very quiet inside his hotel room for the entire stay. He was spotted once outside smoking just briefly, though. And because he doesn't look anything like the photos we've been seeing in the news lately, that's why hotel staff never actually suspected it was him. He was a lot thinner and he didn't look anything like the stud muffin that is actually their exact words from the hotel manager himself.

The photos that he's been seeing in the news lately. So on Sunday morning, actually, he was supposed to be checking out of his room and he didn't. So that's when the nephew of the hotel manager and the hotel manager showed up at the front door, knocked on it, and didn't answer. They opened the door and that's when they found Ryan Jenkins hanging by a belt.

COLLINS: All right. So Norma, my understanding then is that they are, of course, still looking for whoever this mystery woman is and trying to get more information from her, certainly at least as to who she is? REID: Absolutely. We have a description for you this morning, Heidi. She is a very attractive young woman, between 20 and 25 years old. She stands about 5'10". She has blonde hair. She was last seen driving a silver PT Cruiser with Alberta license plates.

And that's interesting because we know that Ryan Jenkins is from Alberta. We don't know if she's a family member. We don't know if she's a friend, and we don't know if she's just simply somebody that perhaps maybe he just paid to drop him off here. We don't know anything about her.

COLLINS: All right. We will stay on top of that story, obviously alongside you. Thanks so much, Norma. We appreciate that.

Meanwhile, here's more information on the suspect and the victim. Ryan Jenkins and Jasmine Fiore were married in a Las Vegas chapel in March. CNN has not confirmed reports that the marriage was annulled. Court records say that Jenkins was charged in June with battery for allegedly hitting Fiore in the arm.

Fiore's body was then found August 15th in an apartment dumpster near Anaheim, California. An arrest warrant for Jenkins was issued last Thursday. At that time, California authorities believed he was already in Canada.

People on the East Coast are still feeling the remnants of Hurricane Bill, which is now, of course, tropical storm Bill. I want to go over to Rob Marciano who has been tracking this thing. Hey there, Rob.

MARCIANO: Hey, Heidi. It's soon to become not even tropical.

COLLINS: Sure.

MARCIANO: Actually, it has pretty much lost its tropical characteristics. You know, as these things get into colder waters, they start interacting with the jet stream, they start moving faster and don't become that vertically stacked item, from top to bottom is warm, that is a hurricane or tropical storm. Regardless, it's still a strong storm and it's moving quite quickly. It occurs in Bermuda in the last three days and then it just boomerangs out to sea. Next stop, interestingly enough, it's going to be in parts of Great Britain.

All right. There are still some waves that are happening across parts of the East Coast. These are some of the buoys and some real time data. Wind speed at 27. This is just south of Newfoundland. Still has a wave height of 18 feet. The water temperature here still warm. Gulf stream goes up this way at 16, 18 feet, and 66 degrees Fahrenheit is the current water temperature up that way.

So there it is moving out to sea about 43 miles per hour. It will continue to pick up speed and will decrease in intensity, not really a tropical storm at this point, but just a mid-latitude storm. But notice it will get towards the British isles as we get closer to mid week, maybe Wednesday or Thursday. Some iReports coming out of the East Coast over the weekend, some folks getting out to do some storm viewing - and actually sorry, this is what happened in Greece where we got 37,000 acres of burned landscape there. And the fires are now getting close to Athens although the winds died down last night. They'll probably kick back up again today. They wont see any rain. They don't get rainfall this time of the year. So they fight them this way, folks out west do it from the air and from the ground.

All right. Back to the U.S. we go. Showers and storms down across the Delmarva, those are starting to fizzle out. The northeast really seeing some nice weather at this time and some showers that will pop up, I think, across parts of the desert southwest. Some of those could be heavy enough to spawn some flash flooding.

But other than that, weather across the U.S. looks to be pretty nice with high pressure is controlled. Seasonally cool temperatures far south as the Gulf of Mexico. Temperatures in New Orleans yesterday didn't get into the 90s and that's kind of nice this time of the year.

It will be 84 degrees today in Memphis, 81 degrees in Chicago, 88 degrees in New York City and 85 degrees right here in Atlanta. Heidi, back over to you.

COLLINS: All right. Very good. Rob, will check back later. Thank you.

Millions of people are about to roll-up their sleeves in the latest plan against the swine flu. So how is the government planning to stop the spread of the disease?

(COMMERCIAL BREAK)

COLLINS: Sun Country Airlines says it will issue refunds after passengers sat on the tarmac for almost six hours. Imagine, it was one of two Minnesota bound flights that experienced lengthy runway delays this weekend because of bad weather and airport construction. The delay comes just after two weeks after passengers on a Continental flight were forced to spend the night on a plane.

Two health care town halls to tell you about. But first, in Buckingham County, Virginia. It's being hosted by Representative Tom Perriello. The other is in Inman, South Carolina. Its host Congressman Bob Inglis.

Poison control centers are reporting an alarming surge in the abuse of a certain type of drug. Medications prescribed for attention deficit disorder. Poison control centers say they are receiving a 76 percent increase in calls about teen abuse of ADHD drugs and that's compared to eight years ago. That includes, it was four deaths reported during that time. Teens taking the drugs can suffer a life threatening symptoms, which includes agitation, rapid heartbeat, and extremely high blood pressure.

Also, I want to tell you about this. Massive wildfires burning right now in Greece. 20,000 people have been evacuated from the suburb of Athens. Firefighters battling the flames from both ground and air now but they may need more help.

CNN's Phil Black joining us live with the very latest on this. So Phil, what's the latest on where you are the possibility of being able to fight this thing from the air today, given the high winds?

PHIL BLACK, CNN CORRESPONDENT: Well, Heidi, generally speaking, things are looking a little bit hot here tonight for firefighters. The condition which has been so severe for several days now, very powerful winds that were really responsible for the unpredictable nature of the fires here, are not gusting as strongly. This is giving firefighters an opportunity to attack what is now a slightly weakened fire front.

It doesn't have that same fuel behind it, very hard both on the ground and especially from the air. Greece does have its own squadron of water bombing aircraft but it is receiving reinforcements from neighboring countries or nearby countries, places like Italy, France and Austria have sent in some of their own firefighting aircraft to help out.

And today, it is softer winds, still strong but not as savage as they had been. It has given them the opportunity to really hit that very hard. Because if they don't, they know the situation could turn very sharply and we might see repeated scenes that we've seen here before. That sort of happened where I'm standing now.

This is actually within the northern outskirts of Athens, within its northern suburbs. The fire at its worst tore through here, destroying a number of buildings. I'm surrounded by many buildings here that have been gutted, ceilings have collapsed, completely destroyed and there is a fear that if they don't knock this on the head very soon that as long as there are flames out there or smoldering embers that it could whip up again if the winds allow it to. Heidi.

COLLINS: Yes, no question. I know I keep saying this, but the video that we are watching is just absolutely incredible. Any end in sight, Phil -- what are the firefighters able to tell people?

BLACK: Well, it really does depend on the weather to a significant degree. They tend to say that today, for the moment, the most severe fire front are not currently threatening residential areas, so people's homes and lives, in that sense, are not at risk. And that's a positive thing.

But this all does, as I've said, hinge on the weather to a very significant degree. Fires are common at this time of year because of the hot, dry conditions. But it's really when the wind kicks in as well that it fuels it up, drives it forward, and is in this case, and we saw this over the weekend, blows hot embers forward, often miles at a time, starting new fires very quickly and that it's very sporadic, it's constant. It's changing and that was the situation that firefighters had a lot of trouble trouble coming to terms with over the weekend. Heidi. COLLINS: I'm sure. All right. Our Phil Black joining us live there from Athens, Greece. Thanks so much, Phil.

In fact, I want to show you this iReport coming to us now, from Greece. Maria Stylianki lives just outside Athens. She has been watching planes trying to put out these wildfires. She says as of 9:00 p.m. last night, the situation had gotten worst and the flames seemed to be getting closer to her home.

The federal government is planning to evacuate millions of people in a matter of months because of the swine flu. Senior medical correspondent Elizabeth Cohen is joining us now to talk a little bit more about this. So it kind of sounds like a race against time. We've been talking about this vaccination for a while. I know you're at the White House to get a briefing on the very latest. What's the scoop?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, it's definitely a -- it's a tall order to try to vaccinate about half of the U.S. population in less than three months. That is certainly a lot of people and it's a lot of people who aren't accustomed to getting flu shots.

COLLINS: Right.

COHEN: Let's take a look at the list of people who are first in line to get flu shots. Pregnant women who even though they are supposed to often don't get flu shots. Anyone ages six months to 24 years old is supposed to get a shot against H1N1 and anyone ages 25 to 64 who has some kind of health problem and parents and caregivers of babies under the age of six months.

Now look at this. This is a young group of people. Usually we say older people need to get flu shots.

COLLINS: Yes.

COHEN: This is a young group. Now, why is it? The reason why is that most hospitalizations and deaths from swine flu have been young people. 75 percent of hospitalizations have been with people under the age of 49. 60 percent of deaths for people have also been with people under the age of 49.

COLLINS: And when you talk about young people, I would imagine that there could be issues at colleges. Have we not seen more universities really experiencing some trouble here?

COHEN: Already we have. Already, for example, the University of Kansas has had about 47 cases of swine flu.

COLLINS: The school year just started.

COHEN: Right. It just started. It's only August and there were already 47 cases. And so what they are telling people, the kids, the students - hey, if you live at home, stay at home. Don't come in to school. They are trying to isolate kids who are residential students. And that's what the CDC is telling people to do. But you know, you do remember college, I mean, people are living in closed quarters.

COLLINS: Yes.

COHEN: I mean, it's going to rip through there. There's no question.

COLLINS: Yes. Well, all right. We'll stay on top of that one, of course, as well. Elizabeth Cohen, thank you. Appreciate that.

And the "Cash for Clunkers" program is now down to its final hours. We'll tell you what kind of cars people have been trading in and what they are leaving on the lot.

(COMMERCIAL BREAK)

COLLINS: Turning to your money now. No inflation means no social securities checks for millions of Americans next year. CNN's Christine Romans is joining us now from New York with more on this. So Christine, no raise for retirees next year, right?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, we won't know for sure until October when the committee that decides this issues its report, but, Heidi, when you're looking at inflation that is actually falling and you have prices falling for the first time, the largest decline in inflation since the 1950s, many of the experts who watch this say there is very little chance that there will be a cost of living increase for seniors and in fact, that would be the first time that that would happen in 35 years.

This is really critical at a time when seniors are already anxious about rising costs of prescription drugs. There are rising out of pocket costs for their Medicare drugs. And so this is something that people really get nervous about when you're talking about their social security checks. Medicare drug costs are expected to rise. The average premium also expected to rise from $30 from $28. And the average check, social security check for retirees is $1,158 a month.

Many retirees have their prescription drug premiums out of Medicare already taken automatically out of their checks. So they could actually see their checks shrink next year. You may recall, Heidi, that last year at this time they got an announcement that there would be a big raise. Because we had inflation was the concern last year, remember? So the checks this year went up almost six percent. But almost everyone thinks that will not happen again and there will likely be no increase in the size of the checks next year.

COLLINS: Well, yes. In fact, the program faces long-term financial problems of its own.

ROMANS: Right. Medicare and you're right. We're looking at the very near term for seniors who are talking about their out of pocket and drug expenses going up, the social security check is not, you can see how that's a tough match for seniors.

COLLINS: Sure. ROMANS: Also because, Heidi, frankly many of them have a home, if they still own their home, it's worth less today than it was a few years ago. An IRA, a pension, 401(k), their investments are down as well. So this is kind of some tough math for seniors here.

Medicare premiums and out pocket expenses now, Heidi, are expected to consume nearly $3 out of every $10 in a senior social security check. They got a little bit of help earlier this year with the stimulus. You might recall, senior people who got social security checks got a $250 one-time benefit but if they are looking for an increased next year based on the cost of living, they are not likely to get one.

COLLINS: Yes, forget it. All right. Christine Romans, we'll talk with you more, a little bit later on.

ROMANS: Sure.

COLLINS: Meanwhile on Wall Street and on Main Street, one big question hanging over everybody. When will the economy recover? On Friday, Fed Chairman Ben Bernanke said the U.S. could return to growth this year. And we had a report showing existing home sales surge last month. But not everybody is so optimistic.

Stephanie Elam is at the New York Stock Exchange with the look at why we need to be cautious as always. Good morning, once again, Stephanie.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hi, Heidi. We've got to stay cautious. That's true. Most economists say that the recovery is going to be slow but that it is on the way. That part is true. However, Nuriel Rabini (ph), an NYU professor goes a step further. He's saying that there's a chance of a double-dip recession. So I know, one economists say why do we care what this one guy has to say?

COLLINS: I know why we care.

ELAM: You know why, right? He's known of being one of the few to predict the current financial crisis as we're the latest forecast, visually think of a letter W. We're now in the first leg up but he says that it's going to be short-lived. In an op-ed piece in the "Financial Times," Rabini warns that a lot will depend on policy makers.

Governments around the world have pledged $2 trillion in stimulus. If government stop spending and raise taxes to fight to budget deficits, we could see deflation and the second wave of the recession. But on the other hand, if the government keeps spending, budget deficits will keep rising. Inflation could become a problem and borrowing rates could rise. As Rabini says, policy makers are damned if they do and damned if they don't, Heidi. So that's why we care what he has to say.

COLLINS: Yes. Well, he has incredible foresight, certainly in all of this. Is there a way to turn around everything? If you know what it is? Can you share it with us?

ELAM: A lot is going to depend on the Fed's so-called exit strategy. Policy makers are working on one. We do know that. But we don't have the details. And they're not likely to stop spending anytime soon. That's because we're only seeing the beginnings of the recovery at this point, and they don't want to choke that off. They want to make sure that it's a smooth transition. It's not going to be an easy one, to say the least.

Another analyst says another 150 to 200 banks are likely to fail, but if you do want some hope, take a look at the Big Board right now. You've got the graph right there next to me. And you can see that stocks are at their highest level of the year. The Dow Industrial is up 64, 9,570. NASDAQ better by 13 to 2,034, and the S&P 500 up 8 at 1,034. So, it's not a huge gain today, but it's all solidly green. We have not seen any red, so we'll take it.

COLLINS: Yes. We absolutely will. All right, Stephanie Elam. Thank you.

ELAM: Sure.

COLLINS: It's the end of the road for the Cash for Clunkers program. Dealers have until 8:00 p.m. Eastern tonight to get all of their paperwork in to the government. And as CNN's Kate Bolduan reports, that part of the job has been a huge headache.

(BEGIN VIDEOTAPE)

KATE BOLDUAN, CNN CORRESPONDENT (voice-over): With a fast approaching deadline, customers flock to car dealerships over the weekend, looking, hoping, to be one of the last to drive home a deal.

DAVID BARROSO, CUSTOMER: I came here so many people here.

BOLDUAN: David Barroso is trading in his van with more than 150,000 miles on it for a new Toyota.

BARROSO: Thank you.

BOLDUAN: Thanks to a $3500 "Cash for Clunkers" rebate.

BARROSO: For me, more motivation, you know? And of course, a new car is always good.

BOLDUAN: As of Thursday, the Transportation Department reported more than 450,000 clunker deals nationwide, worth nearly two-thirds of the $3 billion set aside for the program. But dealers say the paperwork and the payback is a major concern.

(on camera): 15 to 20 documents like this for every deal?

TAMMY DARVISH, VP, DARCARS AUTOMOTIVE GROUP: Right.

BOLDUAN (voice-over): Tammy Darvish is the vice president of DARCARS Auto chain in Greater Washington. She has people working around the clock to meet the deadline. They have made 1,400 clunker deals so far, fronting as much as $4,500 for each rebate. To date, they have only been reimbursed for nine.

DARVISH: I mean, you know, especially coming out of the times we have just come out of and then to have this kind of cash flow hanging out there, it's very unnerving and hard to sleep at night knowing that you have, you know, $6 million outstanding.

BOLDUAN: The National Automobile Dealers Association is urging the government to give them an additional week to process all the deals they expect in these twilight hours. Transportation Secretary Ray Lahood assures the money is on the way.

RAY LAHOOD, TRANSPORTATION SECRETARY: They are going to get their money. We have the money to provide to them.

BOLDUAN: As for customers like Sarah Nesbitt, she is rushing to cash in on a deal she just couldn't pass up.

SARAH NESBITT, CUSTOMER: From this, with all the dings and dents and scratches and dog hair and all it that into one of those.

BOLDUAN (on camera): So, what are people buying? This dealer says nearly 80 percent of all their clunker customers are buying foreign brands and about 80 percent of what people are turning in are domestic vehicles.

Kate Bolduan, CNN, Silver Spring, Maryland.

(END VIDEOTAPE)

COLLINS: Quickly, this developing story to get you up to speed. We have been watching a few different activities that have been happening regarding the Lockerbie bomber case. Specifically today, there was an emergency session of the Scottish parliament that was where they were going to listening in to the Scottish justice. Kenny MacAskill, who's actually the Scottish justice who made the decision to send the bomber back to Libya, as you may recall. I want you have you go ahead and listen in to some of that sound as it took place.

(BEGIN VIDEO CLIP)

KENNY MACASKILL, SCOTTISH JUSTICE SECRETARY: My responsibility to decide upon these two applications -- these were my decisions and my decisions alone. And considering these applications, I strictly followed due process, including the procedures laid down in the prisoner transfer agreement and in the Scottish Prison Service Guidance on compassionate release.

(END VIDEO CLIP)

COLLINS: Again, Scottish Justice Secretary there Kenny MacAskill is there in the emergency session of the Scottish parliament having a chance to defend its decision to send the Lockerbie bomber back to Libya. So as you know by now, the bomber is out of prison, back in Libya. Our next guest actually followed him home, literally. One journalism arrived on the doorstep of Abdelbaset Ali Mohmed al Megrahi and landed an exclusive interview. Martin Fletcher of "The London Times" is joining us by telephone now. So, Martin, you and your crew went to his home for this exclusive interview. Tell us what you saw when you got there.

MARTIN FLETCHER, REPORTER, "THE LONDON TIMES": Well, to back up a little bit, we were very lucky. I flew across on Friday morning. I sat next to a Libyan (ph) who knew where we lived. We went to his house, handed him our cards, not expecting to be admitted. Ten minutes later, we were ushered in.

It was a pretty plush villa. It's covered in ferry lights and pictures of al Megrahi as a young man. He obviously had a big welcome-home service the night before. The hallways was chandeliers, marble floors, and we were led up the winding staircase to a darkened reception room. It was pretty hot outside, the complete opposite of Glasgow.

And there he was. I covered his trial in 2001 in the Netherlands. To be honest, I didn't recognize the man. He looked far, far older than his 57 years. He was very gray, he looked pretty weak and he was leading on a walking stick. And he said that he let us in because that is the Libyan custom. If you come to someone's house, they welcome you.

COLLINS: Really?

FLETCHER: And we talked for, I guess, about 15 minutes.

COLLINS: Tell us a little bit about that talk. I mean, his mood. Other than his physical appearance, which was obviously quite stunning to you. Was his mood upbeat? Does he claim his innocence? I've been reading that he's still trying to explain that later on, he will be able to prove his innocence.

FLETCHER: Yes. He was soft-spoken, and speaks perfect English by now. He was very courteous. He shied away from the more sensitive stuff. He was obviously elated to be home.

But he said he understood the anger of the families. He asked for their understanding. He said before he died, he would put information into the public domain that would prove his innocence. He said that he had dropped his appeal not because he was guilty but because he wanted to maximize his chances of returning home before he died. And he said (INAUDIBLE) that Libya had no part in the Lockerbie bombing but he would not reveal who did.

To be honest, the lot of the interview was -- he's not a stupid man...

COLLINS: Sure.

FLETCHER: He did his best to present himself as a loving father and grandfather. His 86-year-old mother was brought in to meet us, and we were encouraged to talk to her, and then his children and grandchildren and his wife. And we eventually had the whole family there, and he said, how about a photograph.

COLLINS: Huh. Wow.

FLETCHER: Naturally, we took it. And he was full of jokes as we were taking it. This is an exclusive. But, you know, as I say, he's not a stupid man. He knew that a picture of him in the proverbial bosom of his family would be flashing around the world in no time, and that is clearly an image that he and the government wanted to project.

COLLINS: Yes, absolutely. Before we get you go, Martin, obviously, you say he skirted around some of the more sensitive issues. I imagine he did not say anything to victims' relatives who are clearly furious about his release?

FLETCHER: He actually said that some of the victims' families, including American families, had written to him in prison and said whether or not he was guilty, they forgave him.

COLLINS: Huh.

FLETCHER: I don't imagine it is the majority.

COLLINS: Probably not. All right, Martin Fletcher of "The London Times", we certainly do appreciate your time here today. We'll be watching for more of this interview. Thanks so very much.

Meanwhile, hundreds of jobs on the line in one city, and the decision union workers make could decide their fate.

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COLLINS: Space shuttle Discovery is for its early-morning launch tomorrow. NASA has given the all clear. On this mission, astronauts will bring supplies and equipment to the International Space Station. They are also expected to take three space walks.

Two Perdue University students face charges in a deadly college prank. Police say the 22-year-olds drew guns on a friend inside an off-campus apartment. They say it was all meant as a joke, but one of the guns went off, killing their 21-year-old friend. Police say they believe alcohol was involved. Both of the suspects are out on bail.

One of the largest employers in eastern Wisconsin is planning to leave. Boat engine maker Mercury Marine says it will move its plant in Fond du Lac to Stillwater, Oklahoma after union workers rejected a contract offer last night. Union members say that the contract would have reduced pay for newly hired workers and would also have cut vacation and health care benefits.

(BEGIN VIDEO CLIP)

MARK ZILLGES, UNION PRESIDENT: There comes a time when you have to stand up for what you believe in, and these people said hey, we believe in not giving up what we already have. I don't think anybody can be happy about any of this. You know, they're going to threaten you, you're going to lose a job. Nobody is happy with that.

(END VIDEO CLIP)

COLLINS: Mercury Marine will continue to operate the plant out of Fond du Lac until the contract is up in 2012.

Hurricane Bill, now downgraded to a tropical storm, is being linked to a seven-year-old girl's death. The girl was among thousands of tourists watching waves kicked up by Bill at Acadia National Park in Maine. Authorities say the seven-year-old, her father and another girl were knocked by a large wave into the Atlantic. The other two were rescued.

Tropical Storm Bill now. And Rob Marciano has been following it. Everybody wanting to know where its heading.

ROB MARCIANO, AMS METEOROLOGIST: Well, it's motoring quickly off to the east, but still creating some pretty choppy waters of the East Coast. Here is some of the buoy data that we have. Nova Scotia, Newfoundland, and some of these buoys offshore. Newfoundland still reporting a wave height of 17 feet and winds at 22 miles an hour. And water temperature at 66 degrees. So, that does sound warm for being that far north, but actually some of those buoys reporting about 71 degrees water temperature there.

Gulf Stream heads up that way and -- I tell you what. This thing has kind of been following the Gulf Stream. Here is is. A three-day loop, scooting around Bermuda and then heading rapidly off to see, doing that arc, really well forecast by the National Hurricane Center. And it continues to make its way off to the east at 43 miles per hour.

This is the last advisory that the Hurricane Center is giving on it. Because it really isn't a tropical system anymore. It's kind of a morphed into a cold-core system. That doesn't mean it's a weak storm by any stretch. It'll continue to be winds anywhere from 40 to 60 miles an hour all the way to when it gets to the British Isles.

All right. Some iReports as far as some surfing conditions. I know some surf fans on the East Coast don't always get premier surf weather. Well, they got it this weekend for sure. Up and down the East Coast. Carolina coastline all the way up to New England. In some cases, the water was actually too dangerous to even get in the water. I think beaches were open today across parts of Cape Cod. Very nice weather once those waters subside.

And a little bit of a west wind on the Jersey shore, some impressive tubes that some of the kids were surfing in, like they were in Hawaii or the West Coast. Some of benefits, I guess, of Hurricane Bill, but in all, it didn't treat everybody all that well. Heidi, back over to you.

COLLINS: Rob, thank you.

MARCIANO: You bet.

COLLINS: Progress report. New Orleans, four years after Hurricane Katrina. The unemployment rate housing market, better than most.

(COMMERCIAL BREAK)

ANNOUNCER: "AMERICAN MORNING," all this week. New Orleans, four years after Katrina. How the city and its residents continue to suffer, rebuild and look for answers. What New Orleans is like now, after the storm. A special "AMERICAN MORNING" series. All this week, only on CNN, The Worldwide Leader in News.

COLLINS: We are just four days away -- excuse me, days away now - from the fourth anniversary of Hurricane Katrina. Today, New Orleans is doing pretty well in the recession with an unemployment rate lower than national average and lots of development, too. CNN's Sean Callebs reports on the progress.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): New Orleans has been shielded in the aftermath of Katrina. Not by levees. It has been an economic buffer. Federal and private money as the city rebuilds.

Jazz great Irvin Mayfield recently opening a club in the French Quarter, but he wants to talk about his job as a commissioner of the New Orleans Redevelopment Authority.

IRVIN MAYFIELD, COMMISSIONER, NEW ORLEANS REDEVELOPMENT AUTHORITY: Redevelopment is just another word of self-investment for citizens. And I think that passion has always been important to New Orleans. We're now trying to figure out how to transform that passion from music and food into different areas of redevelopment in our neighborhood.

CALLEBS: Sean Cummings is a lifelong New Orleanian. A hotel owner and developer.

SEAN CUMMINGS, CO-FOUNDER, START UP NEW ORLEANS: There's a significant amount of federal spending that is still going on her that's related to the flood catastrophe, and in many ways, the city is benefiting from that. It's propping us up.

CALLEBS: After Katrina, close to 80,000 homes had to be rebuilt, attracting legions of construction workers. It's helped keep the New Orleans unemployment rate at about 7.2 percent, while the national average is closer to 9 percent.

(on camera): With the hotels and nightlife, New Orleans has its share of service jobs. But entrepreneuers are also investing here, finding that there are benefits to being in this city.

(voice-over): Nic Perkins is CEO of the Receivables Exchange. He could have started his business anywhere.

UNIDENTIFIED MALE: Dottie from Pennsylvania, Darrell from England, John from Boston... CALLEBS: New residents know about the problems. Crime, a poor education system, the slow pace of rebuilding. But they are convinced the positive outweighs lingering, deep-rooted problems.

NIC PERKINS, CEO, THE RECEIVABLES EXCHANGE: To have an operation like this would be literally five, six, seven times more for us in New York or San Francisco. The quality of life here -- you can live in New Orleans exceptionally well under a start-up salary.

CALLEBS: And remember, all those volunteers rebuilding the city, and many are doing more than just swinging hammers.

TIM WILLIAMSON, CO-FOUNDER, THE IDEA VILLAGE: If you look at the people who have come since Katrina, there has been an influx of talent that has come to New Orleans initially to help. But now they are coming here to stay, to live, but more importantly, to grow new, exciting companies in New Orleans.

CALLEBS: Home prices are up about 1.1 percent from 2008 to 2009. Nationally, they plunged about 10 percent over the same period. New Orleans is a long way from being whole. Entire neighborhoods remain in ruin, and thousands are still displaced.

MAYFIELD: A lot of people say, look, you guys have been at this for four years. Why isn't this done already? I think people need to understand the volume of things that we have done and we're doing.

CALLEBS: And in many ways, the city has something that it couldn't claim four years ago: optimism.

(END VIDEOTAPE)

COLLINS: And Sean Callebs is joining us now live from New Orleans.

So, Sean, New Orleans really seems to be a tale of two cities now.

CALLEBS: Yes, without question. And firstly, I don't think anybody is going to step back and say, wow, the redevelopment has moved along at such a brisk pace. It is taking time but finally the city seems to be hitting its stride.

But if you look outside the areas where the tourists go, if you venture outside the business district or the French Quarter, the garden district where all the nice restaurants are, and you go into St. Bernard Parish, Gintilly (ph), New Orleans East, Lakeview -- those areas remain in horrible disrepair, for the most part. These are areas that really need revitalization, redevelopment, and the big problem is, people don't know how to build. How safe they will be? Everything kind of works together. Will the levees be safe? Is the city coming back? Can we elevate homes? Still a long way to go here.

COLLINS: Absolutely. All right. Well, Sean Callebs, we sure do appreciate the update. Thank you. Now, "AMERICAN MORNING" has special reports all this week leading up to the fourth anniversary of Hurricane Katrina. We, of course, will too every morning in the 10:00 a.m. hour CNN NEWSROOM.

We want to get you to the story that we're watching on the monitors coming in from our affiliate WSVN. Key Biscayne, Florida. What are you looking at is rescuers are working as quickly as they can. Apparently, there is a child stuck in a pool drain. They are working desperately to free that child. I mean, I'm watching jack hammering going on here. They are ripping this pool apart to get the child out.

I don't have an age for you or any of the circumstances. I just have seen stories like this before where there's an incredible suction, sometimes, and it can be a very precarious situation. So, once again, we are watching live for you some pictures coming in of intense rescue operations happening. Key Biscayne, Florida where a child is stuck in a pool drain. Just kind of watching here and monitoring the situation. Not quite sure how long these rescuers have been on the scene.

But I'm also looking at, I believe, oxygen there that they are trying to get that child through one of the respirators there. That's equipment there being used.

So, we will stay on top of that story for you. We are, I am hearing, now that because, thankfully, because of the jack hammering that they have been doing, ripping the swimming pool apart, that the child's head is apparently above water, so clearly that will give them quite a bit of time to be able to get him or her out of the situation.

Very, very scary. We will continue to watch this story for you in Key Biscayne, Florida once again where a child is stuck there in a pool drain. We'll watch it for you and bring you any developments as they happen.

Unemployed in America. You're out of work, and you're running out of time. So, what happens when your jobless benefits run out? We'll talk to Americans struggling to look beyond that last check.

(COMMERCIAL BREAK)

COLLINS: More than 650,000 Americans will have used up their unemployment benefits by next month. 1.5 million will run out by the end of the year. And for many, there's no job in sight.

CNNmoney.com's Poppy Harlow spent the day with two people experiencing that reality firsthand.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNNMONEY.COM (voice over): Rachel Gold and Anthony Barberio don't have much in common. Rachel is 28 and worked in recruiting after graduating college. Anthony is 46, he worked on Wall Street for 20 years, but he never went to college. The thing they do have in common, a $430 weekly check from the government. Like 6 million other Americans it is life on unemployment after losing a job.

RACHEL GOLD, RECEIVING UNEMPLOYMENT BENEFITS: I definitely didn't think that I would be sitting here, you know, nine months later, you know, without employment.

HARLOW: Rachel lost her job in November. For Anthony, it has been more than a year.

ANTHONY BARBERIO, RECEIVING UNEMPLOYMENT BENEFITS: When I first was let go I figured maybe a month, two months, you know, and I didn't think it would last this long.

HARLOW: But it has and each day brings more work to find work.

GOLD: This afternoon at 2:30, I have a recruiting meeting with somebody that I was networking with.

HARLOW: But the responses are few and far between. So you have applied for more than 650 jobs?

GOLD: Correct.

HARLOW: How many interviews have you had out of that?

GOLD: Maybe ten.

HARLOW: Anthony has applied for hundreds of jobs, too. If it were up to him, he would extend unemployment benefits.

BARBERIO: I think they should just keep continuing it until the job picture gets better.

HARLOW: Unemployment benefits have already been extended but the Labor Department forecasts 4.4 million Americans may lose their benefits before finding jobs. For Anthony, that will happen by the end of this year. And Rachel expects to lose her benefits in January.

GOLD: I would go out and get a waitress job. I would have to.

BARBERIO: I'm going to put like a deadline as to when I'm, you know, going to have to really seriously, you know, look for something, you know whether it be a department store or something like that.

HARLOW: So, why don't Rachel and Anthony find temporary low- paying jobs now? Here's why. The $1,700 a month they receive through unemployment is more than they would make at most entry level jobs.

GOLD: There are people that I have e-mailed.

HARLOW: For now, unemployment is their best bet.

GOLD: It is not that I don't want to work but it is kind of like I could not survive, you know, like working at a store making minimum wage. I wouldn't be able to pay my rent.

BARBERIO: I'm anxious to get back to work. You know, a year in the house could drive somebody crazy.

HARLOW: In New York, Poppy Harlow, CNNMONEY.com.

(END VIDEOTAPE)

COLLINS: I'm Heidi Collins. CNN NEWSROOM continues now with Tony Harris.