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Tensions Rising on the Korean Peninsula; Car Bomb Foiled in Portland; Black Friday Sales Up

Aired November 27, 2010 - 22:00   ET

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

JOE JOHNS, CNN ANCHOR: Breaking news tonight. Tensions rising by the minute along the border of North and South Korea, just a few hours before joint military exercises begin involving the U.S. military. We're live tonight from Seoul and Washington.

A terror plot designed to kill hundreds as they celebrate the beginning of the Christmas season. The suspect -- a college student and naturalized U.S. citizen.

Adrift at sea for nearly two months. The amazing survival story of three young men declared dead two weeks ago and the incredible luck that led to their discovery.

And heading back home tomorrow? What can you expect on the roads and at the airports? Will weather cause you delays and frustration? The CNN travel desk is monitoring the ground and the sky.

I'm Joe Johns, in for Don Lemon, and you are in the CNN NEWSROOM.

Multiple reports out of South Korea tonight underscore how serious the crisis with North Korea has become. Reports of missiles deployed on the border, possible artillery fire and South Korean residents being told to seek shelter. Our correspondents are covering the story in Seoul and Washington. Let's begin in the South Korean capital with Stan Grant.

Stan, what can you tell us there?

STAN GRANT, CNN SENIOR INTERNATIONAL CORRESPONDENT: Joe, a very volatile, a very fluid situation. Now, I want to take you through this step by step because there has been a great deal of confusing and conflicting reports throughout the day.

Now apparently today, there's been announcement that surface-to- air missiles (BLEEP) deployed by North Korea. Now apparently they were deployed since the 23rd, since last week, after that attack on Yeonpyeong Island, but that was just announced today. So, surface-to- air missiles deployed along the border.

Now, an unnamed military source also telling the Yonhap News Agency, who are reporting all of this, so he's saying that -- in his words, artillery sounds were detected on the Northern side. Now these artillery sounds were heard from Yeonpyeong Island. At that point, there was a call for residents there and press there to evacuate or find shelter. Now that order has since been lifted. We're also hearing from the same unnamed military (BLEEP) that there are military movements being detected in North Korea, apparently a device that can fire multiple missiles. Now all of this information coming via the Yonhap News Agency. We have people working on it trying to confirm this. We're going on their reports. They are a reputable, credible news agency operating here in South Korea.

They're reporting that artillery fire was heard from the Northern side, from Yeonpyeong Island, that an evacuation order was in place and has later been lifted and that surface-to-air missiles being detected deployed along the border, but deployed since that attack at Yeonpyeong Island on the 23rd.

And Joe, this just goes to show what a volatile situation it is. And the risk here of a misunderstanding, a miscalculation that could then spark something wider. So we must be cautious. We must be very calm with this and stick to what we are hearing from the Yonhap News Agency -- Joe.

JOHNS: I did personally talk on the phone just a little while ago with a military officer on the ground there, who seems to give us information that dovetails with what you are hearing. There have been some reports of what could be artillery fire and we were also told that some residents were told to seek shelter. So these reports continue to come in and we will monitor them.

Meanwhile, there are already complaints that the response from the South has been too timid and calls for retaliation growing louder. Can you talk to us just a little bit about the mood among people on the streets there in South Korea?

GRANT: A very volatile, a very violent protest that we saw here just yesterday on the streets of South Korea. These were former military, there are former special forces, troops in South Korea, who were protesting, saying that they were concerned about South Korea's response, that South Korea did not hit back hard enough after the attack Yeonpyeong Island.

In their words, South Korea is losing face in this incident. It's not the first time that North Korea has provoked South Korea and they want to see a harder line.

At the moment, we are hearing also about these military exercises about to begin in the Yellow Sea, the U.S. and South Korean exercises. The aircraft carrier USS George Washington, four other battleships as well, about six thousand troops joining South Korean troops. Now these exercises are going to be carried out more than 70 miles from south of that northern limit line, that contentious border area. And North Korea warning that they see these exercises as provocative and that they will respond if their border is threatened -- Joe.

JOHNS: Stan Grant, thank you so much for your reporting and keeping us apprised of a very confusing situation in the Koreas right now.

The North has already said the war games could push the peninsula to the brink of war. Despite that threat, the U.S. and South Korea appear set on going ahead with those exercises. For more on that, Pentagon correspondent Chris Lawrence joins us live now by phone.

Chris, why the determination in the first place on both sides to hold these kinds of war games? You know, the casual observer, the 30,000-foot view, it sounds like brinksmanship, doesn't it?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (via telephone): Well, in some respects, it is, John, but then you have to remember what officials will tell you is that, you know, these were scheduled, that they are technically in international waters and that they have the right to be in those waters. The U.S. obviously partnering with the South Koreans in these exercises.

These exercises are not new. You know, they've done these on several occasions, you know, one just, you know, earlier this year. I think obviously the difference this time is the level of tension that's gone on in the area.

And for people sitting at home, wondering, you know, how this relates to Americans here and American troops, there are about 6,000 sailors and marines on board the USS George Washington. It's a nuclear powered aircraft carrier and there's probably about another thousand, maybe a little bit more troops on board the ships that surround the George Washington. So, a lot of American troops are going to be involved in this exercise. And of course, even more American troops stationed there in South Korea.

JOHNS: Once again, sort of in simplistic terms now, if this is -- if you will, a show of force, is it designed to try to scare the North into backing off and does that work, given the sort of unpredictability of the current regime?

LAWRENCE: Well, I'll refer you to something that Defense Secretary Robert Gates said recently when he was asked a question about North Korea. He said, any question about North Korea that starts with why, I don't know the answer to. Divining the motivation of North Korea has been just about impossible for U.S. military, for U.S. intelligence officials to discern.

The thing this time is, you know, what are the options? Obviously, these exercises, the specific goals stated, is to deter the North from further aggressive acts. You know, some have argued, if that's the purpose, it hasn't worked. But it really -- it puts President Obama and his administration in somewhat of a bind in that, you know, what the North really wants is to get back to talks and wants to force the U.S. to come back to the bargaining table, to the negotiating table and be on stronger terms when it does so.

But if President Obama were agree to talk at this point after this provocation, he runs the risk of coming off looking weak, like he -- like he caved in to the pressure. If he was to take a further military step like say ordering a naval blockade of North Korea, that risk escalating things to all-out war. And there you'll be talking about tens of thousands of troops, a number of aircraft, ships. But if he doesn't agree to the talks, there's really no reason to believe that North Korea will stop this sort of belligerent behavior any time in the future. So, for the president and his administration right now, I mean, the options are really bad and worse.

JOHNS: Chris Lawrence, thanks so much. The only thing predictable, it seems, as has been said about North Korea is that it's unpredictable. So, I'm sure you as the Pentagon correspondent are going to be keeping close tabs on that, and thanks so much for giving us your insights tonight.

In some other news, closer to home, Portland, Oregon, a bone- chilling terror plot was revealed last night at the city's annual tree lighting ceremony. A Somali student at Oregon State was arrested after allegedly trying to blow up a vehicle he believed contained explosives. According to the FBI affidavit, Mohamed Osman Mohamud allegedly wanted to kill and maim as many Americans as possible. The FBI knew the bomb was not real but led Mohamud to believe it would explode up by calling a cell phone number.

CNN's Thelma Gutierrez is live for us tonight in Portland.

THELMA GUTIERREZ, CNN CORRESPONDENT: Joe, I can tell you that we spoke with the police chief here in Portland. (BLEEP) even though the public was never in any immediate (BLEEP).

(BEGIN VIDEOTAPE)

GUTIERREZ (voice over): Nineteen-year-old Mohamed Osman Mohamed is a naturalized U.S. citizen born in Somalia. He lived here in Corvallis, Oregon, a college town an hour and a half outside of Portland. Here, FBI investigators say Mohamed hatched a plan of attack against fellow citizens that dates back to the summer of 2009. The government's case against Mohamed is outlined in a 38-page affidavit.

DWIGHT HOLTON, U.S. ATTORNEY FOR OREGON: This defendant as said in the complaint demonstrated at every turn a very serious determination to commit violent jihad.

GUTIERREZ: So last summer, an FBI undercover agent contacted Mohamed saying he was an associate of an alleged Pakistani terrorist. They met in Portland, where Mohamed told the agent he wanted to put together an explosion where people would either leave dead or injured. He allegedly said he had identified the target where there would be many people, a tree-lighting ceremony in Pioneer Square in downtown Portland.

ARTHUR BALIZAN, FBI SPECIAL AGENT IN CHARGE: He's the one that selected the location. He stated why he selected the location, because of the mass of people that would be here.

GUTIERREZ: Friday, Mohamed and the agent drove a van that Mohamed believed was packed with explosives to Pioneer Square. He allegedly attached a blasting cap to the device he believed to be a detonator. That's when agents swooped in and arrested him. CHIEF MICHAEL REESE, PORTLAND POLICE: It's very difficult for me to comprehend how a young man who we gave -- this country has given great opportunities to could waste those opportunities and be willing to commit a horrific crime. It's very sad.

(END VIDEOTAPE)

JOHNS: That was correspondent Thelma Gutierrez. And we've been having some trouble with her shots. So thank you so much this evening for your reporting and filing that report on short notice.

Everyone is breathing a sigh of relief this attack did not happen but it underscores a more difficult problem, people living in the U.S. who become radicalized by Islamic extremism. I spoke earlier about that with CNN national security contributor, Fran Townsend.

(BEGIN VIDEO CLIP)

FRANCES TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: The problem here is that this self radicalization, Americans or naturalized American citizens, especially from Somalia, pose a real challenge to the FBI. When these guys are able to either contact or attempt to contact individuals overseas who have the sort of technical knowledge to help them make a bomb, that's a problem.

Now obviously, it also provided them an opportunity to exploit. But this is a guy who also made statements to the FBI saying, he really, since he was 15, wanted to join the jihad. And individuals inside the U.S. who self radicalize are an issue.

(END VIDEO CLIP)

JOHNS: Mohamed Osman Mohamud is expected to appear in federal court on Monday.

Police in Michigan are hunting for three missing boys who were allegedly dropped off by their father just before he tried to commit suicide. The father, John Skelton, said he met the woman on the internet and asked her to care for his children so they wouldn't see him after the suicide. Skelton survived his suicide attempt and now is being cared for in a mental health facility. Police are still investigating and acknowledge they don't know if Skelton is telling the truth.

We're getting our first look at how much you spent this holiday weekend. Is it good news or bad news for the start of the holiday shopping season?

And the busiest travel weekend of the year. Many of you will hit the roads in the next few hours returning home. We look at where the weather will cause problems. Coming up next.

(COMMERCIAL BREAK)

JOHNS: Checking some of our top stories. A man who had a relationship with missing Pennsylvania college student, Jenny Lyn Watson, has been charged with her murder. Authorities found a body believed that is believed to be Watson's this morning in Syracuse, New York. She dated the suspect, 21-year-old Steven Pieper, on and off for the past 18 months. Police say he denies involvement.

A deadly cargo plane crashed tonight in Pakistan. CNN's Reza Sayah reports at least eight people, all Russian nationals, all members of the crew, died when their cargo plane went down in Karachi. The plane headed for Sudan was carrying relief supplies. It went down shortly after takeoff, crashing in a development filled with unoccupied homes, most still under construction.

It has already happened in France and Greece and now Ireland is facing major demonstrations because of government cutbacks. 50,000 people protested peacefully in Dublin today. This comes after the prime minister said he wants to increase taxes and decrease welfare in order to save more than $20 billion.

Sales were up but only a little on Black Friday. ShopperTrak says total retail sales were about $10.5 billion, that's a 0.3 percent increase from last year. Customer traffic rose 2.2 percent over 2009. ShopperTrak monitors about 70,000 stores and malls nationwide.

Another retail analyst, NPD Group, reports shoppers bought more with purchases up 4 percent per shopper. Experts think a small improvement may be from many retailers offering major discounts before Black Friday. Whatever the case, it's official, the holiday shopping season is on. CNN's Sandra Endo has more on what gift buyers are looking for at one Virginia mall.

SANDRA ENDO, CNN CORRESPONDENT: Hey there, Joe. We're in Macy's right now and there are a lot of deals left to be had on this holiday shopping season.

Take a look at this. $19.99 for a men's Kenneth Cole shirt. The original price, 60 bucks. And we're seeing this type of sales markdowns all throughout the store. Over here, $39.99 for a men's pair of jeans. And take a look at this, 65 percent off the original price, plus 20 percent on top of that.]

So clearly, a lot of bargains to be had. That's why shoppers are out here to get these deals. And there's a sense that people do want to spend money this holiday season but there's also a sense of caution.

UNIDENTIFIED FEMALE: I have been able to get everything pretty much paid off, so it's just pay-as-you-go pretty much now.

UNIDENTIFIED FEMALE: I'm watching my budget, you know. I don't -- unless we -- it's a need, maybe a little want, but more of a need this year.

Now the National Retail Federation is anticipating an increase about 2.3 percent in retail shopping but millions and more people are online doing their holiday shopping and they're anticipating a 9 percent to 16 percent increase on online spending. And keep in mind, Cyber Monday is coming up, 88 percent of retailers will be slashing their prices online. So if you don't want to brave the crowds here and you can't find those bargains you want, go online on Monday.

Joe?

JOHNS: All right. There we go. The forecast for your trip home is coming up next. Jacqui Jeras has got her eye on all the severe weather. And later, Willie Nelson arrested again. Take a guess what happened.

(COMMERCIAL BREAK) * JOHNS: In tonight's "What Matters," avoiding the debt trap this holiday. Earlier, I spoke to psychiatrist Mark Goulston about how to spend less and enjoy the holidays more. He begins by explaining what motivates people to overspend when they can't afford it.

(BEGIN VIDEOTAPE)

MARK GOULSTON, PSYCHIATRIST: We've become a nation of human buyings instead of human beings. We buy our way out of feeling bad. We buy our way out of feeling bored. We buy our way out of feeling frustrated. We buy our way out of feeling unloved.

And when you add deprivation now for two years in this -- with the economic doldrums that we're in, plus a rigorous advertising campaign, great sales, and then the herd mentality, you look around you and say, gee, they're in debt and they're buying, so if it's good enough for them, it's good enough for me.

And I think what happens is once you get a taste of something you've been deprived of, it's very easy to go full throttle and not worry about it until the next day.

JOHNS: Now you mentioned all over it on your blog that there are things people can do that will make them happier but won't cost anything, which would be a great idea. Specifically, I remember you talking about the power thank you, describe that, will you?

GOULSTON: Well, gratitude is the gift that keeps on giving. You can't feel grateful and feel like there's anything missing in your life. And gratitude helps others because it makes them feel valuable and it helps you because you feel full and complete. And the best way to show gratitude is to a power thank you.

A power thank you is three parts. The first part is you thank someone specifically for something that they did. The second thing is you acknowledge the effort it took for them to do it, how they put themselves out to do it, and then what you share with them is what it personally meant to you.

JOHNS: The other half of that though, as you know, is impulse buying, and that's the idea of just going out and doing something in the moment, if you will. You've suggested that the best way to combat that is taking a 24-hour hiatus.

goaltender: Absolutely.

JOHNS: Will that really help?

GOULSTON: Well, if you can do it. I think one thing to add to the 24-hour hiatus is to think about the last three things that you bought that are about the same size as the things you're about to buy and how did that go for you? Did you really enjoy them? Did they satisfy you? Or did you have a Lady Macbeth moment afterwards, where you thought to yourself, return darn purchase, return, and then felt nauseated as you were running back to try to return everything you bought.

So, think about what your purchases have done to you, not in the moment that you're buying them but after you buy them.

(END VIDEOTAPE)

JOHNS: You can read much more about what Dr. Goulston has to say on his blog at markgoulston.com.

And now, Jacqui Jeras, we've had the turkey, we've done the shopping, and...

JACQUI JERAS, AMS METEOROLOGIST: But I don't feel guilty about it, though.

JOHNS: You're right.

JERAS: I don't feel that.

JOHNS: You feel guilty and now we're ready to go home and go back to work and pay for it all.

JERAS: Yes.

JOHNS: Well, what's the weather going to be like?

(WEATHER REPORT)

JOHNS: Still, it's beginning to look a lot like it's about to be winter, which a lot of us aren't really happy. Well, thank you so much, Jacqui.

JERAS: Yes, that's the way it always has.

JOHNS: Yes, I know. All right.

Well, breaking news out of North Korea tonight. Missiles moved into position, a live report's next.

And an amazing story of survival. Three teenagers rescued after being stranded for nearly two months in the South Pacific. Wait until you hear what led to their dilemma.

(COMMERCIAL BREAK)

JOHNS: Updating our top story -- rising tensions on the Korean Peninsula as the U.S. and South Korea prepare to begin war games in less than three hours. North Korea warns the exercises could push the peninsula to the brink of war but that threat is not stopping the exercises from going forward. Raising the stakes, there's a new report that the North deployed surface-to-air missiles near the border this week and evacuations have been ordered on the same island that was shelled Tuesday as our artillery fire reportedly was heard by some people. Many in the South are frustrated by what they see as a timid response to the North.

(BEGIN VIDEO CLIP)

STAN GRANT, CNN SENIOR INTL. CORRESPONDENT: A very volatile, a very violent protest that we saw here just yesterday on the streets of South Korea. These were former military, these were former special forces troops in South Korea. They were protesting, saying that they were concerned about South Korea's response, that South Korea did not hit back hard enough after the attack on Yeonpyeong Island. In their words, South Korea is losing face in this incident. It's not the first time that North Korea has provokes South Korea and they want to see a harder line.

(END VIDEO CLIP)

JOHNS: Stan Grant in South Korea. Stay tuned to CNN for the latest on the crisis between North and South Korea or log in to cnn.com for more.

President Obama takes a break from playing basketball and takes a seat in the bleachers. We'll tell you where the First Family spent their Saturday and how the president is doing after his rough Friday on the basketball court.

(COMMERCIAL BREAK)

JOHNS: Last night's tree lighting ceremony in Portland, Oregon went off without a hitch despite an alleged plot to cause mass casualties. Authorities arrested a 19-year-old Somali man at the event when he attempted to blow up a vehicle he believed was filled with explosives. The FBI had been monitoring his activities for months to make sure the bomb was not real.

The U.S. and South Korea are a little more than two hours away from beginning war games but there are signs the crisis on the peninsula is even more serious than once thought. News agencies in South Korea report that the North deployed surface-to-air missiles on Tuesday. That was the same day it shelled a South Korean island, killing four people.

The impending WikiLeaks document dump has U.S. government officials very concerned. The U.S. and its allies were awaiting the posting of sensitive of U.S. diplomatic cables on the WikiLeaks' website. The documents could be made public soon within the next 48 hours or so. They're expected to contain delicate information such as U.S. negotiating positions, secret intelligence and other confidential matters.

Still ahead, the amazing rescue of three teens stranded in the South Pacific for nearly two months.

And country music icon Willie Nelson finds himself in trouble with the law. Why Texas authorities arrested him.

(COMMERCIAL BREAK)

JOHNS: Let's talk some politics now and check the top stories crossing the CNN political ticker.

Former Bush adviser and GOP campaign guru Karl Rove is praising Sarah Palin's decision to take her book tour to Iowa. Rove tells Fox News, quote, "That's a pretty smart move if you're thinking about running for president." Iowa, of course, is home to the first in the nation's presidential caucuses.

In Washington today, President Obama and the First Family checked out the Howard University basketball game against Oregon State. The first lady's brother coaches the Oregon State team. The president took one for his own team in a game yesterday when he was accidentally elbowed in the mouth by Rey Decerega, who works for the Congressional Hispanic Caucus Institute. Mr. Obama needed a dozen stitches.

For the latest political headlines, log on to cnnpolitics.com.

New legal trouble for a country music outlaw. Singing legend Willie Nelson has been arrested on charges of marijuana possession. CNN confirmed that Nelson was arrested by the U.S. border patrol in Sierra Blanca, Texas. Nelson has been open about his pot use in the past. Here's an appearance on CNN's "LARRY KING LIVE" just a few months ago.

(BEGIN VIDEO CLIP)

LARRY KING, HOST, "LARRY KING LIVE": Did you smoke today?

WILLIE NELSON, MUSICIAN: Do I smoke cigarette?

KING: Did you smoke pot today? Today, this day.

NELSON: Yes.

KING: You did. Before you came here?

NELSON: Yes.

KING: So you have pot in you right now.

NELSON: Yes. You could arrest me.

(END VIDEO CLIP)

JOHNS: Willie Nelson's publicist has not commented on his arrest.

This next story sounds like it was written for the big screen. A group of teens stranded at sea for 50 days are miraculously rescued. How they survived for nearly two months in the South Pacific.

(COMMERCIAL BREAK)

JOHNS: Three teenagers rescued after 50 days at sea were apparently looking for love. A relative says two of the boys set off in a boat looking for some girls they had just met. The third teen tagged along. That's what peer pressure gets you. CNN's Fionnuala Sweeney has more on this story of South Pacific survival.

(BEGIN VIDEOTAPE)

MALU WILLIAMS, RELATIVE: Yes, I'm happy. That's why I cry and I need to dance.

FIONNUALA SWEENEY, CNN CORRESPONDENT (voice over): Family members can hardly believe it. The three boys, all cousins, were found Tuesday adrift off the coast of Fiji. Filo Filo and Samu Pelesa, about 15, and 14-year-old Etueni Nasau went missing in early October. After an extensive search, the boys were presumed dead, but on Tuesday, a New Zealand fishing boat made a surprising catch.

VOICE OF TAI FREDRICSEN, FIRST MATE: We came across the boys adrift for nearly two months. Very dehydrated, as you can imagine, physically exhausted, but mentally strong adults. Just three teenage boys just wouldn't give up.

SWEENEY: The boys originally set off from the Tokelau Islands in a small aluminum boat. The Tokelaus are three small atolls in the South Pacific, about midway between New Zealand and Hawaii. The boys had only planned for a short trip between islands but they got lost and drifted more than 1200 kilometers. With only a few coconuts on board and no water, they somehow found a way to survive.

FREDRICSEN: They were able to capture water -- rainwater -- during the night as it rains quite often in the tropics. But about two weeks before we actually rescued them, they were able to catch a seabird. I still don't know how they did it. And they wouldn't tell me their secret, but I said, I believe that's what sustained them until the day we picked them up there.

SWEENEY: The teens' family held a memorial service several weeks ago thinking the boys had perished. Now, they are all celebrating and anxiously awaiting the boys' return.

VOICE OF TANU FILO, FATHER: It's a miracle. It's a miracle. The whole village -- the whole village, they were so excited and cried and they sang songs and hugging each other here. On the road, every people and everybody was yelling and shouting the good news here. Celebration here -- celebration of miracle, of joy.

TAJI SINI, FILO'S MOTHER: Firstly, the village, they have to go and give thanks to God in the church. That's the -- that's the first thing the village is going to do, I think. And then, we'll celebrate and have a big feast.

SWEENEY: In the last few days, the boys had reverted to drinking seawater. They were found to be sunburned, hungry and weak but otherwise OK.

Fionnuala Sweeney, CNN.

JOHNS: Next, an otter out of control. Otter madness. We'll be right back.

(COMMERCIAL BREAK)

JOHNS: Don't mess with an otter. One man learned it the hard way.

(BEGIN VIDEO CLIP)

(BLEEP)

(END VIDEO CLIP)

JOHNS: Ouch. That screen is proof. Not pretty. Never mess with an otter. It started innocently when Will Gibbons used his cell phone to videotape or video the cute animals, some might call them vicious. Then it ended up with a bandage on his leg. Even though aggressive behavior is uncommon in otters, this is the third attack in the Boca Raton neighborhood. Precautionary shots were administered after the attacks. Animal Control is working to track the culprit and test for rabies.

I'm Joe Johns at the CNN world headquarters in Atlanta. I will see you back here tomorrow night at 6:00, 7:00 and 10:00 Eastern. "CNN HEROES: AN ALL-STAR TRIBUTE" begins right now.