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E-mails Recovered Show Penn-State Cover Up; Millions Without Power in D.C. Area; Abortion Clinic Gets Reprieve; Polls Reveal How Americans Feel About Obama-care, Supreme Court; Staff Sergeant Picked for NBA; Tarmoh Having Second Thoughts in Olympic Contest; New E-Mails in Sandusky Case

Aired July 02, 2012 - 11:00   ET

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

KYRA PHILLIPS, ANCHOR, "CNN NEWSROOM": And good morning, everyone. I'm Kyra Phillips. It's 11:00 on the East Coast, 8:00 on the West.

The Air Force has a sex problem. A dozen drill instructors charged or suspected of sexual misconduct or worse with female recruits. We're on the story.

The whole world knows the crimes of Jerry Sandusky, but in early 2001, only five people knew or suspected and they didn't do much about it. It's all in the e-mails.

And it's out with the old, in with the older in Mexico. Voters returned to a party that ruled that country for most of the 20th century.

We begin with the insane record-breaking heat that's gripping a huge part of the country right now. Hot and hotter, that's what the National Weather Service says that we can expect for the next few days. And you need it know this. At least 16 states under heat advisories or warnings today.

Adding to the misery, nearly 2 million people without electricity in the D.C.-area and surrounding states. Deadly storms battered that area over the weekend, killing at least 16 people.

Our Brian Todd is outside in that heat in the D.C. suburb of Wheaton, Maryland. So, Brian, what's the biggest problems that you're seeing right now?

BRIAN TODD, CNN CORRESPONDENT: Kyra, right now, the rush hour is officially over, but really it's not over. One of the biggest problems in this area is traffic snarl. Hundreds of traffic lights are out.

There's one over here on Randolph Road just a couple hundred yards up from us now where they are trying to just get people through that light. People are told to treat this like a four-way stop.

Every light around here treat it a four-way stop. This one just got running a short time ago. More than 200 traffic lights in Montgomery County were out, dozens in Virginia and dozens in the D.C.- area, in D.C. proper are out, as well. So traffic snarl still continuing into the 11:00 Eastern time hour when rush hour should long since be done.

You mentioned spiking temperatures. Temperatures around here expected to get up to 97 degrees, so that's, you know, something that the motorists and others are dealing with. We talked to three people at a gas station just down the block a short time ago. Here's what they had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: But the thing you is just have to follow the other cars and also traffic, how they are crossing. You just have to pay attention. That's all.

UNIDENTIFIED MALE: A lot of detours. A lot of lights that are out. Some that are on, spotty, but a lot of congestion, a lot of discourteous drivers

UNIDENTIFIED MALE: The biggest challenge for me has been to find a gas station that has power because, with all the power outages and the technology that we've got, the gas stations don't open if they don't have power.

(END VIDEO CLIP)

TODD: That last gentleman who we spoke to said that was the 10th gas station he had been to this morning before he had actually found some gasoline, so that's a huge problem as well.

People moving around just trying to deal with this, trying to get to work even if it's late. About 600,000 customers in the D.C.- area as of now still without power, but they are slogging through it, trying to get, you know, just areas booted up, neighborhoods, entire neighborhoods booted up all at once, but it's not easy.

They have to just rebuild circuits, rebuild transformers as they go, so it's going to be a tough slog and we're told that the last customer to get his or her power up may not get it back until late Friday evening, Kyra.

PHILLIPS: OK, Brian, keep us updated and be sure to stay with CNN on this extreme heat wave and efforts to restore the power that's affected so many areas.

And, you know, the heat is adding to the problems to firefighters out west actually. Take a look at this map right here. It actually shows the 12 western states that are dealing with the wildfires right now. One of the worst is Waldo Canyon and that's near Colorado Springs.

We've been talking a lot about that fire. But firefighters are now getting an upper hand, apparently, so much so that evacuation orders have actually been lifted for most of the 35,000 people who were forced to flee. Rob Marciano has been there since it began. Rob, let's talk about those people that are being allowed back in. What exactly are they coming back to?

ROB MARCIANO, AMS METEOROLOGIST: Well, you know, some are coming back to neighborhoods and homes that are just fine, that were evacuated as a precautionary measure and kept that way until utilities and such had to get back online.

Others, they're coming back to damaged homes or nothing. Yesterday, the folks who knew that their homes were gone were finally allowed back to take at least take look in their private vehicles via convoy and look at what was left in their homes and neighborhoods.

We caught up with a couple of families yesterday and here's what they said about the experience.

(BEGIN VIDEO CLIP)

HANNAH SOLICH, FAMILY LOST HOME IN FIRE: It looked like a war zone. It was just -- we drove in and it didn't even look like a house. It was bad and it just smelled like smoke and it was just -- you got down in it and it smelled like ash, and it was awful.

(END VIDEO CLIP)

MARCIANO: You're looking at one of the subdivisions, one the neighbor that was badly burned here in the Mountain Shadow area, and the scarred landscape uphill from there, you can see just how black it is and look at how close that blackened hillside is to the other neighborhood that was left untouched.

And then further up the canyon and up the hillside, you see pretty much the entire western flank of the front range there completely black. It will take years, if not decades, for that forest to regenerate itself and the community there will take slightly less time than that to rebuild, but the emotional scars may very well last a lifetime.

It was a horrible, horrible day last Tuesday and this week has been no fun here in Colorado Springs. Kyra?

PHILLIPS: And we'll keep in touch with you and with Brian Todd on all things weather. Rob, thanks so much.

And please remember you can help those affected by the fires in Colorado. All you have to do is go to our website, follow the link to ...

(AUDIO BREAK)

UNIDENTIFIED FEMALE: ... to read and to give answers ...

(AUDIO BREAK)

PHILLIPS: ... has come under fire, as you know, for sales and marketing issues related to those two drugs. A statement from the company says this. They wanted to express their regret and that they have learned from their mistakes.

Once again, a major settlement, drug-maker GlaxoSmithKline agreeing to pay $3 billion to settle criminal and civil claims over the drugs Paxil and Wellbutrin.

(COMMERCIAL BREAK)

PHILLIPS: All right, a quick note for those of heading out the door. You can continue watching CNN from your mobile phone or computer. All you have to do is logon at CNN.com/TV.

Well, two weeks from today an Air Force drill instructor in Texas will go on trial for allegedly raping female recruits. Staff Sergeant Luis Walker is one of 12 Air Force trainers now suspected of or charged with sexual abuse of trainees at Lackland Air Force Base in San Antonio.

Three others, two training bases in Texas and Mississippi also being looked at by a two-star general. CNN's ...

(AUDIO BREAK)

PHILLIPS: ... watching all of this unfold from the Pentagon. Chris, how many alleged victims are we talking about right now?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Well, the military confirms, Kyra, that we're talking about 31 women right now, 31 victims, all of them still in the Air Force.

But there was a big question about how many more are out there and that is part of what the investigation is looking at. Are there more victims out there who have not come forward yet and told their story?

When we talked to several female service members, they told us, you know, there's no such thing as sort of consensual sex between an instructor and a trainee. They said you're incredibly vulnerable and the relations is based on intimidation. It's getting you tough. It's getting you ready for the military and they say, you know, there's just no way for a woman to really consent to sex with her instructor.

PHILLIPS: Now, this started what, about a year ago with one trainer being accused, right, and then we've sort of seen a domino effect over the last 12 months or so?

LAWRENCE: That's exactly right. Another trainer copped a plea, so to speak, agreed to take a plea bargain deal. He admitted that he did have sex one of trainees that he was responsible for, but then in testimony, evidentiary hearing, he admitted it wasn't one, but 10 women and that brings up the last point I said about you don't know how many more victims there may be out there.

PHILLIPS: Let's talk about this two-star that's been assigned to investigate what's happening at the Air Force Academy. And, Chris, we know this has gone all the way to top. Leon Panetta has talked about the problem of sexual assault in the military, also the Naval Academy, West Point. I mean, this has become a serious concern within the military ranks.

LAWRENCE: That's right. Secretary Panetta has said, look, service members should not be afraid of fellow service members and that's the heart of this right now. Now, I have to say, not all of these are sexual assaults, rape, like the one that's coming up in a couple weeks, the trial or the court-martial.

But some are inappropriate sexual contact and, when you've got superiors and junior personnel, it's a very, very tricky moment to say when there was actual consent and I think that's the point of a lot of women -- female service members who are coming forward to say, look, the military is not like civilian world. We can't just quit our job. We can't use the civilian courts remedy if we feel we've been harassed. It's a different dynamic, and we feel there has to be some special rules.

Some would actually like to see service members be able to take advantage of civilian courts in dealing with this. The Pentagon is trying to keep it in-house for now. What they are doing is starting up these victims units, in other words, people who are trained in how to gather evidence in assaults, people who are trained in how to gather evidence in sexual assaults, people who are trained in how to interview potential victims of sexual abuse, taking it sort of out of the chain of command and starting to have these special units to be able to address some of these is

PHILLIPS: We will definitely stay with the story. Chris Lawrence, thanks so much. And for more reporting on the military or national security and terrorism, check out Chris's blog at CNN.com/security.

(COMMERCIAL BREAK)

PHILLIPS:: Well, our neighbors to the south have elected a new president in Mexico. Enrique Pena Nieto is the projected winner. A preliminary count actually shows him leading with nearly 40 percent. That puts the former ruling party back in power for the first time since 2000.

So who exactly is Enrique Pena Nieto. Well, he's 45-years old, he's a lawyer, and for five years he was governor of the state of Mexico. That's the most populous state with 15 million residents. He's been a long-time member of Institutional Revolutionary Party. He's married to one of Mexico's most famous soap opera stars, as well.

(AUDIO BREAK) PHILLIPS: Miguel, I know you've met ...

(AUDIO BREAK)

PHILLIPS: What's your sense?

MIGUEL MARQUEZ, CNN CORRESPONDENT: My sense is this is a very smart, very shrewd, very political guy. His uncle, by the way, was governor of the state of Mexico previous to Enrique Pena Nieto taking over. He's been in the Institutional Revolutionary Party his entire life, in the bowels and the guts of the PRI party, as well. He is a PRI-ista as they call him here at heart.

This guy, if there's anybody who can change the PRI from the inside out, it's him. That's essentially what he's telegraphed to the Mexican people, that's what he's saying the party will do. Even if he wins by that 40 percent, still 60 percent of Mexicans voted against him, so in his speech last night he was very conciliatory.

He clearly was speaking to everybody, students enraged at his own party as well, telling them that they are going to create more opportunity, telling them that the Mexican people have given him a second chance and he understands that and that he is going to change the PRI and change Mexico. Kyra?

(AUDIO BREAK)

PHILLIPS: ... what about the drug cartels? Can he even begin to change that?

MARQUEZ: That is going to be a big, big issue here. I think the big things we'll see very quickly. The inauguration is in December. In September, though, the legislature starts up. He will have probably a lock on the lower house, it looks like, and maybe very close, at least a working majority in the senate as well.

We're likely to see two things. One, an oil law here, a new law regulating the energy industry, including the Pemex and also the beginnings of the new war against the drug cartels here. He wants to create sort of a national police force, a gendarme that can both investigate and replace out those military troops and keep that fight against the drug cartels.

He's brought in the top Columbian general in order to be his adviser on this so they can work in a more coordinated fashion and perhaps down that southern flow of cocaine and other drugs from some countries and also grapple with the marijuana and the meth growing and making here in Mexico and try to bring that overall level of violence down on the street for all Mexicans.

Kyra?

PHILLIPS: We'll follow it. Our Miguel Marquez, live from Mexico City. Miguel, thanks.

And in Syria, a new international plan to end the deadly uprising against President Bashar al-Assad already appears stalled if not dead. The for a transitional government was reached over the week in Geneva by the U.S. and other Western governments, as well as Syrian allies, Russia and China.

Syrian opposition groups quickly dismissed the deal because of the possibility that Assad could remain in power. Now, Secretary of State Hillary Clinton concedes that Russia may not have the clout to force Assad to step down.

(BEGIN VIDEO CLIP)

SECRETARY OF STATE HILLARY CLINTON: They have committed to trying, but they have also admitted that, you know, they may or may not have enough leverage to convince not just one man, but a family and a regime that their time is over.

(END VIDEO CLIP)

PHILLIPS: Amid the talking, violence does continue. Opposition activists say that mortar rounds hit near an elementary school in a Damascus suburb today.

(COMMERCIAL BREAK)

PHILLIPS: Well, talk about your happy landings. Let's take you live to Mobile, Alabama. It's the welcoming of the aircraft manufacturer Airbus and the $600 million that it now plans to invest in its first North American factory.

The Alabama plant is expected to produce the next generation of the A-320 passenger plane and also provide about 1,000 jobs. Airbus is a bitter rival of Boeing which you probably know it. Boeing accuses Airbus of unfair and illegal subsidies from European governments.

Well, we're going to have more details from today's big announcement as soon as we get them.

Well, the Supreme court ruling has been made. Healthcare reform is upheld, but for some this debate is far from over. Chief political correspondent Candy Crowley takes a look at the next stop for ObamaCare.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: You can't go higher than the high court, so the way the White House figures it health care is the law of the land, period.

UNIDENTIFIED MALE: It's time now too get over the debate and to implement the law.

CROWLEY: The problem is that settled law is one thing and settled politics is an oxymoron.

UNIDENTIFIED FEMALE: I find it amazing when the governor and others in her party dismiss the difference between a state having a plan and the federal government having a plan.

UNIDENTIFIED FEMALE: There's all the difference in the world. There's all the difference in the world. You could you have states ...

UNIDENTIFIED FEMALE: The Supreme Court just dismissed that argument.

CROWLEY: Across the Sunday talk shows the health care debate moved from the stately and secretive chambers of the Supreme Court back across the street to where it began, the hallowed but divided halls of congress.

REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: This has to be ripped out by its roots. This is government taking over the entire health insurance industry. The American people do not want to go down this path.

CROWLEY: After the Fourth of July recess ...

UNIDENTIFIED MALE: This is a 15-minute vote.

CROWLEY: The House is planning to vet on repeal of health care law, blow it up, even the popular parts, like banning insurance companies from setting lifetime caps on benefits or refusing coverage to people with pre-existing conditions.

And that's why, even though repeal will pass the Republican- dominated House, Democratic leader Nancy Pelosi is smiling.

REPRESENTATIVE NANCY PELOSI (D), MINORITY LEADER: Repeal of all the things I said that help children and young adults and seniors, help men or women who have prostate cancer, breast cancer, whatever it is, any pre-condition and everybody will have lower rates, better quality care and better access.

(END VIDEO CLIP)

So that's what we want to repeal. We're happy to have that debate.

CROWLEY: Pelosi can afford to be mellow. She and everybody else knows repeal will never pass the Democratic-majority Senate.

Speaking of which, Senate Republican leader Mitch McConnell may be in the minority now, but he happened to mention Sunday that November could change things.

(BEGIN VIDEO CLIP)

SENATOR MITCH MCCONNELL (R), MINORITY LEADER: If I'm the leader of the majority next year, I commit to the American people that the repeal of ObamaCare will be job one.

By the way, I think we will also be insisting that we have a vote on ObamaCare again before the election, but in terms of achieving it, it would take a different Senate with a different majority leader and a different president.

CROWLEY: Which brings us to where the Supreme Court really sent the healthcare debate.

REPRESENTATIVE PAUL RYAN (R), WISCONSIN: It's beyond Congress, the president and even the Supreme Court. The American people will be the judge and jury of this law come November.

CROWLEY: Turns out you can go higher than the high court. Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: And for more on this, visit CNN.com. Remember you can watch Candy Crowley's "State of the Union" every Sunday, 9:00 a.m. Eastern.

Well, it's hard to believe that July is already here and you know what that means -- new laws. In Illinois, taxi drivers will be able to charge passengers a $50 cleanup fee for vomiting in cabs. Virginia law now says that all electronic messages on outdoor advertising must remain in place for at least eight seconds so drivers won't be distracted,.

And then in Massachusetts, a law goes into effect banning the disposal of medical sharps like needles and syringes in all household trash. Then in Idaho, law enforcement will now be able to issue arrest warrants by fax. And in Kentucky all the folks with extra hogs on their hands, well, they are no longer able to release them into the wild.

(COMMERCIAL BREAK)

PHILLIPS: She has battled the flesh-eating bacteria for two months and today, Aimee Copeland ...

(AUDIO BREAK)

PHILLIPS: She was released from a Georgia hospital to begin rehab.

(AUDIO BREAK)

PHILLIPS: ... like a kid going off to college.

You'll recall that Aimee had her hands, one of her legs ....

(AUDIO BREAK)

PHILLIPS: Doctors say that she became infected after that zip- line accident in may.

And, of course, for more on the flesh-eating bacteria and Aimee Copeland's recovery, you can always visit CNN.com/health. We are following her progress.

And a federal judge has issued a temporary restraining order that allows Mississippi's only abortion clinic to stay open for now. A state law imposing tough new regulations was supposed to go into effect today, but has been put on hold pending a hearing later this month.

The clinic's owner says that the new rules could force her to shut down. So, is this about protecting women's health or is it just about politics ...

(AUDIO BREAK)

PHILLIPS: ... in Jackson, Mississippi. So, George, what's ...

(AUDIO BREAK)

PHILLIPS: ... can actually force this clinic to close?

GEORGE HOWELL, CNN CORRESPONDENT: Kyra, this law does effectively two things. First of all, it requires that any physician who performs an abortion in the state of Mississippi be board- certified OB-GYNs. That's first. And that they have special privileges or permission at local hospitals to admit patients, if necessary. The sponsor of the bill said it sounds simple enough. It is a health regulation. But the owner of this clinic says, first of all, she's been trying to get those permissions since the law was signed back in April to no avail and she believes hospitals may be under pressure in the state to drag their feet on this.

I want to step out of the way and show you a live picture of what is a daily standoff. Each day this clinic is open, you can see people protesting who want to see the clinic gone. but, again, the clinic remains open, Kyra, under this temporary restraining order that protects it from the state law, at least until July 11th, when we will hear there will be a hearing on this case.

I spoke to the owner of the clinic just about staying open and what she thinks about that. Here's what she had to say.

(BEGIN VIDEO CLIP)

DIANE DERZIS, CLINIC OWNER: This has nothing to do with women's health, and they made, with their statements, that they want to close this clinic. But up to now, women have a constitutional right to have this ability to have this decision to make, so we have to have somewhere for them to make that in this state. This is clearly a challenge to "Roe v. Wade." Everyone in this country realizes that.

(END VIDEO CLIP)

HOWELL: Just a minute ago, I spoke to the sponsor of this bill, Senator Sam Mims (ph), who says he's disappointed that this law is not taking effect today and the clinic is still open. Also a statement from the governor that I want to read to you, Governor Phil Bryant. His spokesperson says, quote, "The federal judge's decision is (INAUDIBLE), and Governor Bryant plans to, with state leaders, to ensure that this legislation takes effect as soon as possible.

you see on one side of this story, they are trying to work to make sure that the clinic is closed, but here, at the clinic, it remains business as usual under this new protection.

PHILLIPS: All right. We'll follow it. Our George Howell there out of Jackson, Mississippi. Thanks so much.

We'll definitely be watching what happens next.

The reaction was pretty swift and expected. Republicans railed against the Supreme Court's decision last week to uphold president Obama's health care law.

(BEGIN VIDEO CLIP)

REP. TOM PRICE, (R), GEORGIA: I think that the justice was wrong on this, but that's if the for me to say. The court has ruled, and I respect that ruling, but I think what the chief justice says is, look -- in fact, he said it himself. He said it's not the role of the court to protect the citizens from their political decisions, the consequences of their political decisions. He threw it right back in the American people's lap, and appropriately so. This is a policy decision. Whether or not it's constitutional, it's now been ruled constitutional, doesn't mean it's the right policy for the country.

(END VIDEO CLIP)

PHILLIPS: Democrats meanwhile applauded the ruling, saying it's what the American people wanted.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER, (D), NEW YORK: Well, I think if Republicans make as their number-one issue repeal of health care, they are certainly going to lose the election in the House and the Senate and the presidency. Bottom line is most Americans are not for repeal.

(END VIDEO CLIP)

PHILLIPS: Joe Johns is with the CNN Election Express in Des Moines, Iowa.

Joe, right after the Supreme Court ruled we went out there, taking the country's pulse for four full days. We've got the numbers. As you've crunched this all, is it just what the American people wanted?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, you're right. Thursday night, this is just after the Supreme Court ruling, CNN was out in the field trying to find out what you were thinking. and what we found out, Kyra, is that there's a very evenly divided split among Americans on this issue of the Supreme Court's ruling on health care. 50 percent of Americans in our poll said they agree with the decision. 49 percent said they disagree.

It's also clear that whether you agree or disagree, it clearly depends on your party affiliation. Take a look at this. Democrats, 81 percent said they agree with the court's decision on the health care law, upholding the Obama mandate. Republicans, not so much. Only 18 percent said they agreed with it. Independents, you would expect them to be the tie-breaker. Not necessarily so here. They are split, too. 47 percent said they agree with the Supreme Court decision -- Kyra? PHILLIPS: You know what's interesting though when you lack at those numbers, Joe, there's still a lot of people, and there were some polls that came out within the last week, that are confused about this, that still do not understand it.

(LAUGHTER)

JOHNS: Right.

PHILLIPS: And in many ways decided to go with the way voted because they -- that was kind of the only choice they're left with.

JOHNS: I think that's obviously very good question for them to ask, simply because this poll actually started being taken the very day the Supreme Court decision came out, so there's going to be a learning curve for the American people to figure this out. The interesting fact, if you ask globally, who was the big winner in all this, it was the United States Supreme Court in a lot of ways. Look at this. The question, did the supreme is handling its job, and we see a big jump there among Democrats. Democrats, 50 percent in April to 13 percent approving of the Supreme Court's job now. Republicans, not so much. Again, 31 percent of Republicans saying they don't approve of how the Supreme Court is handling its job, and that's down from 52 percent in April. Independents once again a wash, still right there in the middle. So people are looking at the Supreme Court saying, I don't know if I like the Supreme Court based on this one decision apparently -- Kyra?

PHILLIPS: All right. Joe Johns there in Des Moines for us.

Joe, thanks.

Not so fast, Charlie Rangel. The veteran New York Congressman's victory in the Democratic primary may not be as solid as he thought last week. Apparently, a new vote tally over the weekend put Rangel up by just 800 votes, but there are more than 3,000 paper ballots that still have to be sorted through. Rangel is fighting in a new district, one that's much more Hispanic-American than in the past.

I had a chance to speak with him a while back and asked him about the challenge of facing a Hispanic candidate in the primary.

(BEGIN VIDEO CLIP)

REP. CHARLIE RANGEL, (D), NEW YORK: Not, of course, of people doing a cultural thing as opposed to an experience thing, it's going to work out all right because (INAUDIBLE).

(END VIDEO CLIP)

PHLLIPS: (INAUDIBLE) -- talking about Adriano Espaillat (ph). And now he's expected to go to court today over those uncounted write- in ballots.

(COMMERCIAL BREAK) PHILLIPS: Well, in Iraq he guarded thousands of detainees. In Kandahar, he was an M.P. In Kuwait, he was a U.S. customs agent. Bernard James definitely has some skills, a lot of them, but now he's going over the pond, onto the court, trading in his fatigues for a basketball jersey. Staff Sergeant Bernard James has experienced a different kind of draft, the NBA. He was picked in the second draft and is now a Dallas Maverick.

Bernard, first of all, congratulations, definitely not your typical path to the NBA.

(LAUGHTER)

BERNARD JAMES, DALLAS MAVERICK: Thank you, thank you, definitely not.

PHLLIPS: So what did it feel like when you found out you wee drafted? You got a standing ovation. Everybody stood up shouting your name,

JAMES: I felt love seeing people's patriotism, seeing the crowd come together like that. You know, they were cheering against other all night. All of them had on for the teams they liked, so it was good seeing them all coming together and shouting, USA.

PHILLIPS: Now I'm curious, Iraq, Qatar, Kuwait in, and particular Iraq, how did you build your skills? I mean, it's not so easy to find a basketball court that's safe in a zone?

JAMES: Yes, definitely not. I mean, it was tough. It was tough. There was definitely a drop-off while I was over there. But, you know, I mean, we had like a makeshift court, you know, so at least I was able to touch a ball and just, be able to, you know, keep used to how the ball feels. But, I mean, when I got back in the states, you know, I would just kind of go into overdrive to kind of make up for lost time.

PHILLIPS: You know, this was not something that you dreamed about as a kid. You had a step-father who was influential in your life. He was military. It a no-brainer, so how exactly did this happen?

JAMES: I think it was just -- it was just the right time, and I felt like, you know, I was getting that itch to be independent, you know. I think -- I think I got that an earlier age than most people. I wanted to get out and do my own thing and make my own way so, you know, the military seemed like a perfect choice for me because I grew up in that regimented lifestyle and, you know, moving around and traveling a lot, so the military offered all of those things and, you know, it offered me a career.

PHILLIPS: And how -- how did it lead into basketball? And tell me about Eric Dumas. Apparently he was your supervisor and saw you on the court one day and said holy cow, do you play ball?

JAMES: I know. It was -- actually Eric Dumas, I cite him as being responsible for getting me to play organized basketball, but before he even on the court, this is at work one I just armed up and my weapon, about to head out for duty and he asked me did I play basketball, and I said no, and he's like well you do now.

(CROSSTALK)

PHILLIPS: Why, because you were so tall?

(LAUGHTER)

JAMES: Yes, just tall and lanky, long arms. He was actually the coach for an intramural basketball squad.

(LAUGHTER)

PHILLIPS: OK, new center and happened to find it in me. He spotted you and said you're tall enough. I'll you a good player. And you did. You obviously had a lot of talent.

JAMES: Yes.

PHILLIPS: So when did you decide, OK, I'm going to go for it, I'm going pursue the NBA?

JAMES: I mean really -- I didn't start NBA until about a year ago until after my junior season at FSA. Before that, you know, the whole goal was getting out and just getting into college and getting my degree. I didn't really realize that I could play in the NBA until about a year ago.

PHILLIPS: It's amazing. All right. So let me ask you this because I want to bring it back to you serving our country. I mean, here you were in Iraq, in Qatar and Kuwait. You're weapon-trained. You've been in hostile situations. You know, you're now going to be playing with a lot of guys, all they know is basketball, right? This has been their dream.

JAMES: Yes.

PHILLIPS: They haven't been schooled like you have about the world and -- and they haven't served our country. How are you going to fold into that life? I mean, there's a lot of money. There's a lot of attitude. What are you going to bring to the game that you are hope might have a bit of a positive impact?

JAMES: I think -- I think my appeal to teams is just the fact that I have been so much, so, you know, I think I have a better grasp on real life than some of these guys. They get caught up, you know in, just the situation they have been in their entire lives. It's understandable, but I think I'll be able to help keep my teammates grounded and just, you know, with a better -- better appreciation for what we are all enjoying, you know, as NBA players.

PHILLIPS: Well, and you think of a lot of NBA players, right, the fights, the attitudes. In the military, you've got to keep your cool, know how to deal with pressure and know how to deal with the stress. Do you think that's going and also -- your team --thing (INAUDIBLE).

JAMES: (INAUDIBLE) -- from the high pressure situations to -- to keeping your cool under pressure, and all that -- all that transfers directly over, and it will help me become a better leader, and I'll be able to contribute a lot in the locker room to my teammates right from the jump, even before I'll be able to be a huge contributor on the court.

PHILLIPS: You know before I let you go. Who do you think is going to be tougher, Coach Carlisle with the Mavericks, or your commanding officer when you were in the Air Force?

(LAUGHTER)

JAMES: I don't know. That's yet to be seen. I'm looking forward to it though.

(CROSSTALK)

PHLLIPS: You might be -- you've got to be tougher, coach. You understand. Now he's in Iraq. Might be coming back asking for more.

(LAUGHTER)

JAMES: Yes, maybe.

PHLLIPS: Bernard, good luck, we appreciate you being with us.

JAMES: Thank you.

PHILLIPS: You bet. We'll be watching you career.

And Bernard James will report to the Dallas Mavericks July 11th.

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PHILLIPS: And the crowd went wild. The Spaniards finally had something to cheer about. Last night, amid the country's economic crisis, Spain's soccer team beat Italy with a convincing 4-0 victory to capture the 2012 European championship. They are not the best team in Europe. Some say they are the best team to ever play the game. Spain is now the first to win three consecutive major tournaments in a row having won the 2008 Euro Cup and also the 2010 World Cup.

(BEGIN VIDEO CLIP)

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(END VIDEO CLIP) PHILLIPS: Let me tell you, you might want to remember this gal because she is set to be of the face for Team USA summers in the summer Olympics, and she's only 17 years old. (INAUDIBLE) time of the year last night when she swam the 200-meter backstroke in 2:06. That win qualified her for her seventh Olympic event, the most ever by a female swimmer.

It's hard enough to win a spot on the U.S. track and field Olympic team, but two women now face a run off in the (INAUDIBLE). You've got to listen to this. Allyson Felix and Jeneba Tarmoh finished in a dead heat for third place in the finals eight days ago. Well, the top three finishers in each event make the team that will compete in the London games later this month. A USA track and field initially had said that initially that both women agreed to the runoff set for tonight, but now there is word that Tarmoh is having second thoughts.

Don Riddell, here to help us sort it out.

You are saying this is great for the sport, because everybody is paying attention to it, but it is emotional for the gals.

DON RIDDELL, CNN SPORTS CORRESPONDENT: I feel sorry for the girls, but do you like reality television?

(CROSSTALK)

PHILLIPS: It is playing out right here in our world.

RIDDELL: Yes, and it is the ultimate reality TV. And it is going to last 10 seconds, but it will suck in so many people. It is so emotional for both of the girls and it is a unique situation for U.S. track and field. But if it goes ahead, it is fantastic for the sport. And it is borne out of what was a disaster for the sport when they found themselves in the position in the first place.

PHILLIPS: But now we are hearing that, the Tarmoh is having second thoughts. What do you think?

RIDDELL: Well, people will try to persuade her to run. She's finding this very difficult. This is her first year as a professional. She is a rookie in the sport. She's only 22 years old. She thought she had a place in the Olympic team and finished third, and there up on the board, she was third. She got the flag and did the lap of honor.

PHILLIPS: Did the victory lap.

RIDDELL: And they said, no. basically these two crossed the line at exactly the same time. And the guy in charge of running the photo finish at first gave it to Tarmoh, but because of the pressure of the situation and this is to get on the Olympic team, he said I'm not so sure about it. So they reran it, and reran it.

(CROSSTALK)

PHILLIPS: They went through frame by frame?

(CROSSTALK)

RIDDELL: Thousands of frames per second.

PHILLIPS: So what was the final word? I mean, were they exactly on the line together. No doubt?

RIDDELL: They could not pick them apart. These two are friends. They train together.

PHILLIPS: Same coach, right?

RIDDELL: Same coach, same sponsor, and both by Nike, and here they are. And the trials have been going on for the rest of the week, and they took part in the 200-meter trial yesterday in which Felix set the fastest time in 14 years, so she is on a high and definitely going to the Olympics, competing in the 200-meters. Tarmoh missed out. She only finished in fifth. They are both going to be on the squad, but Tarmoh would like to be there in her own right.

PHILLIPS: When will we know? When she is going to decide?

RIDDELL: During the day --

(CROSSTALK)

RIDDELL: Maybe the last minute. And even Felix said, this is not worth it if I get injured. We might have a situation where Tarmoh agrees to it and so they're both warming up. And Felix says, I am warming up, and I am not going to risk it, not running. The whole thing could be a huge anti-climax.

PHILLIPS: But they could flip a coin.

RIDDELL: How exciting is that? No way. You want to see them in action.

(LAUGHTER)

PHILLIPS: You want to see them in action.

RIDDELL: Yes. Absolutely.

PHILLIPS: We will have a follow up and you will bring it to us as soon as it happens.

RIDDELL: Yes.

PHLLIPS: All right, so stay tuned to CNN.

Thank you, Don.

As the Olympic athletes prepare to go for the gold, Piers Morgan is preparing a special salute called "Pride of America," airing this Wednesday at 9:00 p.m. eastern. (COMMERCIAL BREAK)

PHILLIPS: All right. So what do the Newark mayor, Cory Booker, and Google executive chair, Eric Schmidt, have in common? They are both behind a social networking site called Waywire, and Oprah is also said to be an investor. It is to get millennials involved in news and their perspective. It is expected to launch later in the summer.

Live pictures right now of Kennedy Space Center location. The new leg of the very long journey of Orion and when, and if, astronauts travel outside of earth's orbit, something they have not done by the way of 1972, they'll do it on the Orion, the most advanced spacecraft ever is designed. Roughed out in New Orleans and then shipped on to Kennedy for finishing, Orion's first unmanned test flight, apparently as we are listening to the live news conference here, is scheduled for 2014.

Well, with the conviction of Jerry Sandusky for raping several boys over several years, the focus now is turning to what Penn State knew about his crimes and what officials did or didn't do to stop him. A batch of newly uncovered 11-year-old e-mails actually suggest that former university president, Graham Spanier, and former athletic director, Tim Curley, and former V.P., Gary Schultz, actually considered tell telling the authorities about that infamous 2001 shower incident, but decided it would be more, quote, "humane, to keep it quiet."

CNN's Susan Candiotti on the story.

Susan, it is your report that is getting all of the attention, because of the Paterno factor. Tell us how the legendary Penn State football coach it is figuring into all this and all these old e-mails?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Kyra, it's because, for the first time, we're hearing that apparently Joe Paterno had another conversation that we didn't previously know about after he initially reported what Mike McQueary, the grad assistant, said he saw involving that shower incident between Jerry Sandusky and a boy in 2001, and the alleged e-mails reflected this. And it is raising more questions about that.

Let's start with, as you indicated, that initially Penn State officials apparently had a plan. Let's go to the text of the first e- mail that is purported to be from the Penn State athletic director -- rather, to the Penn State athletic director, Tim Curley, from vice president, Gary Schultz, in 2001. It is the plan is to "talk to the subject," Jerry Sandusky, "ASAP regarding the use of the facility, and containing the charity," Second Mile, "and contacting the Department of Welfare." That means contacting the child welfare officials. Remember, even if you suspect something, you are required to report it to child welfare officials. But then, Kyra, something appears to change and I will tell you about the change of heart now in the second e-mail. We go to the second alleged e-mail. The very next day, in a message to the president of the university, from -- let's see, from Tim Curley, and copying Gary Schultz, he says, "After giving it more thought and talking with Joe yesterday, I am uncomfortable with what we agreed were the next steps. I'm having trouble going to everyone but the person involved. I think it is more comfortable meeting with the person involved and tell them the information that we received."

So in other words, at this point, Kyra, they decide not to move forward with telling all of this to the child welfare agencies.

PHILLIPS: Any comment from these three since you have been able to break this news?

CANDIOTTI: Well, we didn't get any calls back from the lawyer representing your former president of Penn State, Graham Spanier, but we did a letter from the lawyers representing Curley and Schultz. This is how it reads. "For Curley, Schultz, Spanier and Paterno, the responsible and the humane thing to do was, like Governor Corbett of Pennsylvania, to carefully and responsibly assess the best way to handle vague but troubling allegations. Faced with tough situations, good people try to do their best to make the right decision."

The question is, was that the right decision not to report this to any outside authorities when they are required to do so, and instead, to try to handle it internally. As we know, the records show that child welfare was never contacted. And as a result -- and it's important, Kyra, to remember the children in this. At least four children were later attacked by Jerry Sandusky. He was convicted in connection with having sexual contact with at least four children after the 2001 shower incident.

PHILLIPS: Susan Candiotti. Thanks so much. Thanks for watching everyone. You can continue the conversation with me on Twitter @KyraCNN or on Facebook. Newsroom International starts right now.