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CNN Live Saturday

A Look At Improvements In Iraq; Marines Still Taking Fire Despite Ceasefire; Afghan Government Set To Destroy Poppy Fields

Aired April 10, 2004 - 16:00   ET

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


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


HOLLY FIRFER, CNN ANCHOR: President Bush calls this attack and kidnappings by Iraqi insurgents the actions of a small faction, attempting to dee derail democracy. In his weekly radio address, he insists the upsurge in violence will not delay the ends of U.S. occupation in Iraq.
U.S. troops are retaking the Iraqi city of al Kut from the forces of radical Shiite Cleric Muqtada al-Sadr. His militia has been battling coalition troops there and in other locales including Najaf Karbala, Nasiriah and Sadr City in Baghdad. The rebels still control parts of Najaf and Karbala.

Five suspected terrorists arrested last week in southwestern England made a court appearance today. The men allegedly took part in a bomb plot. The arresting officer says they found a half ton of ammonium nitrate stored away in west London.

We begin this hour in Iraq, a year after U.S. forces ousted Saddam Hussein, the country seems more volatile than ever. Here are the key developments. You are going do see a man who is apparently an American being held hostage by Iraq insurgents. The Arabic TV network al Jazeera showed him reciting a statement he was being treat well. A voice said that would change unless U.S. forces leave Fallujah in the next 12 hours.

Earlier, an Australian TV network showed him inside a car fulled of masked armed men who asked journalists to look at him. When asked what happened, the man said quote, "they attacked our convoy." The Pentagon says two U.S. soldiers and four civilian contractors are missing after a convoy was attacked near Baghdad's airport.

The three Japanese hostages who were kidnapped this week may be free soon, that's according to al Jazeera. It reports they will be released within 24 hours in response to a call from the Islamic Institute, a Sunni organization in Iraq.

The German foreign ministry says two of sits security people are missing. They were assigned to the German embassy in Baghdad. Reports say they were part of a convoy driving from Aman, Jordan (ph) to the Iraqi capital.

And so many people have fled Fallujah, that some witnesses are calling it a ghost town. The city has been the site of intense fighting between U.S. forces and insurgents. An army spokesman says coalition fighters are trying to observe a ceasefire with combatants, but are still taking fire from them. Well, U.S. forces say they control most of the southern city of al Kut. They swept into the area this week to push out members of a banend militia radical to a loyal Shiite cleric. Jane Arraf reports from al Kut, via videophone.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: The U.S. Army says it's gearing up for another night of fighting in the town of Kut. This after two nights of intensive fighting that the army says has left it in control again of 60 to 70 percent of the city.

Now, the troops sent here are from the 1st Armored Division based in Baghdad. They had been due to go home. In fact, some of their equipment, some of their aircraft had been shrink wrapped and at the port. Some of them were heading home already. Instead, they are back here and back in combat. And the Army says they will stay here and until the militia is erradicated.

In two overnight intensive fighting, they say they have regained control of main bridges into the city and regained control of key facilities in the city, as well. They say their aim now is to continue fighting to get rid of the militia loyal to al-Sadr.

Townspeople have said the militia had been going around intimidating people into joining them. Some, though, said there had been some support because of the poverty in this region. All of those factors combine to make sure that the army will be staying here for sometime to come. Jane Arraf, CNN, reporting from Kut in south central Iraq.

(END VIDEOTAPE)

FIRFER: Let's take a closer look at the volatile situation in Iraq with CNN contributor Kelly McCann. He's a former marine who is now a security and terrorism expert. His company provides security for clients in Iraq.

And Kelly, we talked about the hostage taking, the Japanese hostages may be let free, but an American, Germans are missing. Tell us a little bit about who is taking these hostages. Is it the same group, many different factions? How do we know?

KELLY MCCANN, CNN CONTRIBUTION: Different factions with different motivations. Most thing people have to realize is there is a tremendous amount of criminals let loose on the economy by Saddam just prior to the beginning of combat. You've got Sunni fundamentallists, you've got Shia fundamentalist, and then you've got interlopers. You've got people who have come from outside the country who are basically interested in creating this instability and kind of problem. So it's a very, very complex environment. All of them could be taking hostages.

FIRFER: A lot of these civilians are independent contractors there, they are setting roads, waters, electricity, bringing that to people. That's needed. So how do you protect these people from this new upsurge of kidnapping.

MCCANN: They are clearly not combatants, they are there to do support services operations, construction, telecommunications, et cetera. It takes a significant effort to provide security over there. I mean, we're talking about havinging to have licenses, vehicles, having to have personal armor, equipment, command and control structure, things like that.

Unfortunately, that kind of budget doesn't exist for a lot of the things that we see where the people are being victimized, fuel convoys, mail runs, more mundane supply duties, et cetera. They don't have the same budget for the high end security.

FIRFER: Brings up what's happening around the rest of the country. We see what's happening in major cities, but what about in small towns with people? They're the ones who need the water, the supplies, the food. What's happening around there, and are we likely to see perhaps those people rebell and say enough is enough. We need help.

MCCANN: You said many true things in the same statement. They do need it the most. They are most concerned with that and least concerned with other things like democracy. They will want food, they want medicine. All of that. The adversaries know that to keep this asymmetrical to make sure they can attack in the most vulnerable way, keeping them from getting food appears to make the whole thing look unstable. It make the U.S. look ineffectule, it makes the coalition look like they're totally out of control. So, you get into this horrible cycle of no matter what you do, you can't break out of this circle. And I think that's what the U.S. is efforting right now, with it's combat operations, to do.

FIRFER: And earlier, this morning, we heard they were senning two more battalions into Fallujah. Does that signal there's another offensive happening or is the standard military operations? Why would they do this?

MCCANN: They went in very hard, very fast. The local commander said they could have taken the city had they not stopped. Basically, they stopped, they're going to refit, they're going to rest, they're going to basically set up their reserves so they can respond if they meet heavy resistance when they start again.

But most importantly they did it so they can engage in diplomacy. The problem is, who can the be diplomatic with? Whi is really in charge of the numbers of kinds of different insurgents that could be in Fallujah? It's difficult to get your arms around.

FIRFER: And it was quiet in Baghdad, we heard Jim Clancy earlier say. Is that because people are just fear the violence, fear the coalition forces? Or is somebody helping them, prompting them to say look, let's give it a chance.

MCCANN: There are two reasons. The word was passed at a very high level to a lot of mullahs and imams, to tell the Iraqi people to cool down a little bit, because if they make things so unstable appearing, that the Iraqi governing council won't be allowed to take over sovereignty in June and that's the last thing a lot of them want. That could be the answer.

Another answer could be the threat of violence from First I.D., First I.D. went in very, very strong presence and put out the word, if you cross these lines you'll be fired on, et cetera. It's 50/50. We'll probably learn more about that next week.

FIRFER: You bring over the hand over, June 30. Is that realistic? Is that a realistic possibility? The Iraqi military, they're not, it doesn't seem, trained enough. They're there in presence, perhaps, but does that equal capability and the skills to do what they need to do once the coalition forces pull out?

MCCANN: Some believe that it is possible. The problem with that theory is that if you are the only acting military force in country and you have another host nation as the government that is not empowered to order or direct that military, it's a little bit odd, isn't it? The Iraqi military, the Iraqi police have not yet been fully equipped, they have not yet been fully trained and still some distrust between the people and both the military and the police. So again, it's anybody's guess, but my opinion is that probably not.

FIRFER: So talking about the Iraqi governing council, we see members coming in and out. Who are we going to hand power over to, and who is working with them to be able to have a safe transfer of power, and do you do it gradually or just say, here it's in your lap, it's your problem now?

MCCANN: It will be done gradually. And probably a lot of sitting members will be the people that go forward with sovereignty. The problems being, that they'll be seen largely to be figureheads. And also, they too will have a problem exercising control on this diverse group of insurgents and Sunnies and Shia and just like anyone else would. So, there are some really big question marks, Holly.

FIRFER: Well, thank you for clearing up some of that and some insights. Kelly McCann, we appreciate your time today. Good to talk to you.

Well, a year after coalition forces took Baghdad, the bad news seems to outweigh the good, but there have been many positive changes for Iraqis since the end of Saddam Hussein's regime. CNN's Jim Clancy looks beyond the doom and gloom.

(BEGIN VIDEOTAPE)

JIM CLANCY, (voice-over): Hundreds of thousands of Iraqi students have returned to refurbished classrooms where teachers are being paid a living wage. For the first time, schools are getting computers. But students say the security situation makes it difficult for them to take advantage of the improvements.

UNIDENTIFIED FEMALE: We are not safe. The driver who take us to college carry a gun with him in order to protect us. Really fed up from the situation. I don't know what's -- when it will be solved this problem. I don't know. And I'm hopeless. Believe me.

CLANCY: Some improvements don't hinge on security.

Electricity has been restored to levels well above those before the coalition invaded Iraq to topple Saddam Hussein. Clean water also widely available, sometimes in rural areas that never had it before the coalition arrived.

Newspapers and the media are flourishing, there are estimated to be around 200 newspapers published, representing views that Iraqis were never able to hear before. Telephone communications not only restored, but international links are available that were never possible before. And there are several major cellphone providers, as well.

Internet access, unheard of under Saddam Hussein, is now open along with dozens of Internet cafes, allowing users without computers to get on the Internet for communication and research.

Iraqi hospitals, they have seen some improvement, although much more is expected on that front in the coming year. The U.S. is preparing to spend more than $1 billion on new and existing healthcare facilities.

One of the biggest changes Iraqis see is that their own security forces are being trained and ready, but they are not ready yet.

(on camera): A year after arriving here, some members of the U.S.-led coalition say they can't fix everything. They complain that too many Iraqis are standing on the sidelines watching and waiting instead of seizing the opportunities already taking shape in their country. Jim Clancy, CNN, Baghdad.

(END VIDEOTAPE)

FIRFER: We'll look how England is handling its security problems, especially with the Easter weekend and the...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): Last year, I came here after the eradication with teams from the international community. And we promised to help the farmers. But we did nothing. And now our reputation is damaged.

(END VIDEO CLIP)

FIRFER: Nation building or poppy field building? The cost of doing too little in Afghanistan.

And then, do you have a last-minute tax question? Well, we've got the answers for you. E-mail your questions to dollarsigns@CNN.com or call us at 1-800-807-2620. We'd love to hear from you. We'll be right back.

(COMMERCIAL BREAK)

FIRFER: Some headlines from across America. In Fresno, Californis, the lead attorney for a man accused of killing nine of his children insists his client is innocent. On March 12, police found the victims all shot once through the eye and Marcus Wesson covered with blood at his home.

New York: fromer counterterrorism expert Richard Clarke's book questioning the Bush administrations priorities in fighting terrorism may soon become a movie. Sony Pictures Entertainment has bought the rights to the best seller "Against All Enemies."

Jackson, Mississippi: a U.S. marshall defends one of his deputy who forced the erasure of recordings to reporters of a speech made by Supreme Court justice Antonin Scalia, but the martial concedes that Scalia's request that he not be recorded should have been announced before his speech on Wednesday.

Well, across the Atlantic, British police are on heightened alert, conducting anti-terror raids and imposing new security measures.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN CORRESPONDENT (voice-over): This is Sheila MacVicar in London. For months, British officials have warned a terror attack in the U.K. is quote, inevitable. British police will not discuss specific measures, but security has been strengthened with a more visible police presence. And for London's Underground, a new campaign to promote public awareness of security.

This week, the head of the Metropolitan Police said in an interview that, quote, "Britain was now in a state of real danger." His remarks were published a day after security sources confirmed British police had foiled a plot to explode a bomb laced with a potential lethal chemical. And last week, police seized half ton of fertilizer which can be used as an explosive. Six men, all British, including a 17-year-old, have now been charged with conspiring to carry out an attack.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

FIRFER: And five of the men who were arrested in last week's terror sweep across england appeared in court for the first time today. Their lawyers did not ask for bail.

Well, some other news around the world. In Siberia, a deadly mine blast: the Russian Interfax News Agency says a methane explosion killed at least 28 coal miners earlier today. Russian officials say more than 20 are still missing. Eight miners were rescued. Rescue operations were hampered by debris scattered near the entrance to the mine shaft. And in southern Iraq, a surprise Easter visit. Italian prime minister Silvio Berlusconi made an unannounced visit to Nasiriyah today. He flew in early, greeted the troops, joined them for lunch and then left the country a few hours later. Some 2,900 Italian troops are based in Nasiriyah.

In Afghanistan, despite efforts by the government and the international community to eradicate the opium trade, the country's most lucrative cash crop is growing and may even yield a record harvest. Senior international correspondent Nic Robertson reports.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Starting the first furrow, an Afghan farmer begins destroying a field of opium-producing poppies. Soon bogging down, as the narcotic crop flooded only hours earlier. This is the opening salvo in the Afghan government's drive to eradicate 25 percent of all poppies, muirering in more than just mud.

UNIDENTIIFED MALE (through translator): People will rebel against the government if they destroy all the poppies and don't help us solve our problems.

ROBERTSON: Another farmer complains poverty drove him to poppy cultivation for the first time this year.

He's not alone. This year, Afghan and international officials say production is up: 28 out of the country's 32 provinces growing the narcotic, some for the first time.

(on camera): Turning over these feels is really a drop in the ocean. These tractors will destroy about ten kilograms of opium, that's about 20 pounds in this field. Last year, Afghan farmers produced a massive 3,600 metric tons of opium.

(voice-over): Selling for between 200 and 800 dollars a kilo, opium is big business. An estimated $30 billion a year. Half of Afghanistan's GDP.

UNIDENTIFIED MALE (through translator): Last year, I came here after the eradication with teams from the international community. And we promised to help the farmers. But we did nothing. And now our reputation is damaged.

ROBERTSON (voice-over): The next month is going to be critical if eradication targets are to be met this year. From what we've seen in this Afghanistan's biggest upony-producing province, significant destruction is still far from a reality. Nic Robertson, CNN, Helmund (ph) province, Afghanistan.

(END VIDEOTAPE)

FIRFER: Much of the country watched Condoleezza Rice this week as she testified before the 9/11 commission. But did you catch the buzzwords? We did. And coming up, at 4:30 Eastern, call us or e-mail us with your last-minute tax questions. Yes, the deadline looms. Our e-mail address, dollarsigns@CNN.com. Our phone number 800-807-2620. Back after the break.

(COMMERCIAL BREAK)

FIRFER: Next week, the 9/11 commission is scheduled to hear from some major players in U.S. law enforcement and intelligence gathering, CIA director George Tenet is among those scheduled to appear during two days of hearings starting Tuesday. FBI Director Robert Mueller is also scheduled to be in the hot seat. The performance of the CIA and FBI has already been the focus of a prior congressional probe.

Last Thursday's testimony by national security advisor Condoleezza Rice created quite a buzz in both the world of politics and the American vernacular. Here's a sample.

(BEGIN VIDEOTAPE)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: He told me he was tired of swatting flies.

RICHARD BEN-VENISTE (D) 9/11 COMMISSION: You said the president was tired of swatting flies. Can you tell me one example where the president swatted a fly when it came to al-Qaeda prior to 9/11?

RICE: I think what the president was speaking to...

BEN-VENISTE: No, no. What fly had he swatted?

RICE: Well, the disruptions abroad.

There was no silver bullet that could have prevented is the 9/11 attacks.

I don't agree that we know that we had somehow a silver bullet.

It was not going to be a silver bullet to kill bin Laden.

Somehow maybe we would have gotten lucky by shaking the, quote, shaking the trees. Dick Clarke was shaking the trees. Director of Central Intelligence was shaking the trees.

It's questionable to me whether the argument that has been made that somehow shaking the trees is what broke up the millennium period is actually accurate. I don't think it was shaking the trees.

And was meeting with him and I'm sure shaking the trees.

UNIDENTIFIED MALE: If all of his recommendations during the transition or during the period when his hair was, quote, on fire, had been followed immediately, it have prevented 9/11, he said no. Do you agree with that.

RICE: I agree completely with that. (END VIDEOTAPE)

FIRFER: And now to the buzz at the Master's. Fans are gathered at Augusta National to see if Englishman Justin Rose stays the course on the leaderboard in today's third round of the masters. For the crowds, the most moving moment of the tournament came yesterday when Arnold Palmer finished play in his 50th and final Masters.

At 74 years old, an 18 over par, he knew he wouldn't make the cut, but for his fans, it was enough to see him walking Augusta National one last time. Here's our Josie Burke.

(END VIDEOTAPE)

JOSIE BURKE, CNN SPORTS CORRESPONDENT (voice-over): Near the end of his final round at the masters, the shin splints that made Arnold Palmer feel 74 years old disappeared. By the time he walked up 18 for the last time, a flood of memories made Palmer feel young again.

ARNOLD PALMER, 4 TIME MASTERS CHAMPION: If you just use your imagination, you would understand that emotion. I've thought about how many times I've walked up that 18th fairway.

BURKER: Palmer may return to Augusta as an honorary starter in the future, or for Tuesday night champions dinners. He says he won't play again, but promised he'd never really leave.

PALMER: I don't think that I could ever separate myself from this club and this golf tournament. I might not be present. I may not be here, but I'll still be a part of what happens here.

TIGER WOOD, 3 TIME MASTERS CHAMPION: Jack and I were talking about that, and how he's not giving himself a hernia stopping a club that quick, you know? For him to be out here playing, I mean, it's great for the game of golf.

BURKE: Friday may have also ended the Masters career of the man with more green jackets than any other. Six-time winner Jack Nicklaus said he might be done, as well.

JACK NICKLAUS, 6 TIME MASTERS CHAMPION: This is arnold's day. Let him have his day and if I walk away, I walk away. I may have played my last round. We'll just see.

PALMER: It's done. And I won't say I'm happy it's done. It's time for it to be done for me.

BURKE (on camera): Palmer said the most meaningful part of his farewell was that all of his children and all of his grandchildren were there to share it with him. Josie Burke, CNN, Augusta, Georgia.

(END VIDEOTAPE)

FIRFER: And he will be missed.

Well, almost time for "Dollar Signs." Today, got some tax questions? we've got answers for you. Call us at 1-800--807-2620 or e-mail your questions to dollarsigns@CNN.com. Be right back.

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Aired April 10, 2004 - 16:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HOLLY FIRFER, CNN ANCHOR: President Bush calls this attack and kidnappings by Iraqi insurgents the actions of a small faction, attempting to dee derail democracy. In his weekly radio address, he insists the upsurge in violence will not delay the ends of U.S. occupation in Iraq.
U.S. troops are retaking the Iraqi city of al Kut from the forces of radical Shiite Cleric Muqtada al-Sadr. His militia has been battling coalition troops there and in other locales including Najaf Karbala, Nasiriah and Sadr City in Baghdad. The rebels still control parts of Najaf and Karbala.

Five suspected terrorists arrested last week in southwestern England made a court appearance today. The men allegedly took part in a bomb plot. The arresting officer says they found a half ton of ammonium nitrate stored away in west London.

We begin this hour in Iraq, a year after U.S. forces ousted Saddam Hussein, the country seems more volatile than ever. Here are the key developments. You are going do see a man who is apparently an American being held hostage by Iraq insurgents. The Arabic TV network al Jazeera showed him reciting a statement he was being treat well. A voice said that would change unless U.S. forces leave Fallujah in the next 12 hours.

Earlier, an Australian TV network showed him inside a car fulled of masked armed men who asked journalists to look at him. When asked what happened, the man said quote, "they attacked our convoy." The Pentagon says two U.S. soldiers and four civilian contractors are missing after a convoy was attacked near Baghdad's airport.

The three Japanese hostages who were kidnapped this week may be free soon, that's according to al Jazeera. It reports they will be released within 24 hours in response to a call from the Islamic Institute, a Sunni organization in Iraq.

The German foreign ministry says two of sits security people are missing. They were assigned to the German embassy in Baghdad. Reports say they were part of a convoy driving from Aman, Jordan (ph) to the Iraqi capital.

And so many people have fled Fallujah, that some witnesses are calling it a ghost town. The city has been the site of intense fighting between U.S. forces and insurgents. An army spokesman says coalition fighters are trying to observe a ceasefire with combatants, but are still taking fire from them. Well, U.S. forces say they control most of the southern city of al Kut. They swept into the area this week to push out members of a banend militia radical to a loyal Shiite cleric. Jane Arraf reports from al Kut, via videophone.

(BEGIN VIDEOTAPE)

JANE ARRAF, CNN CORRESPONDENT: The U.S. Army says it's gearing up for another night of fighting in the town of Kut. This after two nights of intensive fighting that the army says has left it in control again of 60 to 70 percent of the city.

Now, the troops sent here are from the 1st Armored Division based in Baghdad. They had been due to go home. In fact, some of their equipment, some of their aircraft had been shrink wrapped and at the port. Some of them were heading home already. Instead, they are back here and back in combat. And the Army says they will stay here and until the militia is erradicated.

In two overnight intensive fighting, they say they have regained control of main bridges into the city and regained control of key facilities in the city, as well. They say their aim now is to continue fighting to get rid of the militia loyal to al-Sadr.

Townspeople have said the militia had been going around intimidating people into joining them. Some, though, said there had been some support because of the poverty in this region. All of those factors combine to make sure that the army will be staying here for sometime to come. Jane Arraf, CNN, reporting from Kut in south central Iraq.

(END VIDEOTAPE)

FIRFER: Let's take a closer look at the volatile situation in Iraq with CNN contributor Kelly McCann. He's a former marine who is now a security and terrorism expert. His company provides security for clients in Iraq.

And Kelly, we talked about the hostage taking, the Japanese hostages may be let free, but an American, Germans are missing. Tell us a little bit about who is taking these hostages. Is it the same group, many different factions? How do we know?

KELLY MCCANN, CNN CONTRIBUTION: Different factions with different motivations. Most thing people have to realize is there is a tremendous amount of criminals let loose on the economy by Saddam just prior to the beginning of combat. You've got Sunni fundamentallists, you've got Shia fundamentalist, and then you've got interlopers. You've got people who have come from outside the country who are basically interested in creating this instability and kind of problem. So it's a very, very complex environment. All of them could be taking hostages.

FIRFER: A lot of these civilians are independent contractors there, they are setting roads, waters, electricity, bringing that to people. That's needed. So how do you protect these people from this new upsurge of kidnapping.

MCCANN: They are clearly not combatants, they are there to do support services operations, construction, telecommunications, et cetera. It takes a significant effort to provide security over there. I mean, we're talking about havinging to have licenses, vehicles, having to have personal armor, equipment, command and control structure, things like that.

Unfortunately, that kind of budget doesn't exist for a lot of the things that we see where the people are being victimized, fuel convoys, mail runs, more mundane supply duties, et cetera. They don't have the same budget for the high end security.

FIRFER: Brings up what's happening around the rest of the country. We see what's happening in major cities, but what about in small towns with people? They're the ones who need the water, the supplies, the food. What's happening around there, and are we likely to see perhaps those people rebell and say enough is enough. We need help.

MCCANN: You said many true things in the same statement. They do need it the most. They are most concerned with that and least concerned with other things like democracy. They will want food, they want medicine. All of that. The adversaries know that to keep this asymmetrical to make sure they can attack in the most vulnerable way, keeping them from getting food appears to make the whole thing look unstable. It make the U.S. look ineffectule, it makes the coalition look like they're totally out of control. So, you get into this horrible cycle of no matter what you do, you can't break out of this circle. And I think that's what the U.S. is efforting right now, with it's combat operations, to do.

FIRFER: And earlier, this morning, we heard they were senning two more battalions into Fallujah. Does that signal there's another offensive happening or is the standard military operations? Why would they do this?

MCCANN: They went in very hard, very fast. The local commander said they could have taken the city had they not stopped. Basically, they stopped, they're going to refit, they're going to rest, they're going to basically set up their reserves so they can respond if they meet heavy resistance when they start again.

But most importantly they did it so they can engage in diplomacy. The problem is, who can the be diplomatic with? Whi is really in charge of the numbers of kinds of different insurgents that could be in Fallujah? It's difficult to get your arms around.

FIRFER: And it was quiet in Baghdad, we heard Jim Clancy earlier say. Is that because people are just fear the violence, fear the coalition forces? Or is somebody helping them, prompting them to say look, let's give it a chance.

MCCANN: There are two reasons. The word was passed at a very high level to a lot of mullahs and imams, to tell the Iraqi people to cool down a little bit, because if they make things so unstable appearing, that the Iraqi governing council won't be allowed to take over sovereignty in June and that's the last thing a lot of them want. That could be the answer.

Another answer could be the threat of violence from First I.D., First I.D. went in very, very strong presence and put out the word, if you cross these lines you'll be fired on, et cetera. It's 50/50. We'll probably learn more about that next week.

FIRFER: You bring over the hand over, June 30. Is that realistic? Is that a realistic possibility? The Iraqi military, they're not, it doesn't seem, trained enough. They're there in presence, perhaps, but does that equal capability and the skills to do what they need to do once the coalition forces pull out?

MCCANN: Some believe that it is possible. The problem with that theory is that if you are the only acting military force in country and you have another host nation as the government that is not empowered to order or direct that military, it's a little bit odd, isn't it? The Iraqi military, the Iraqi police have not yet been fully equipped, they have not yet been fully trained and still some distrust between the people and both the military and the police. So again, it's anybody's guess, but my opinion is that probably not.

FIRFER: So talking about the Iraqi governing council, we see members coming in and out. Who are we going to hand power over to, and who is working with them to be able to have a safe transfer of power, and do you do it gradually or just say, here it's in your lap, it's your problem now?

MCCANN: It will be done gradually. And probably a lot of sitting members will be the people that go forward with sovereignty. The problems being, that they'll be seen largely to be figureheads. And also, they too will have a problem exercising control on this diverse group of insurgents and Sunnies and Shia and just like anyone else would. So, there are some really big question marks, Holly.

FIRFER: Well, thank you for clearing up some of that and some insights. Kelly McCann, we appreciate your time today. Good to talk to you.

Well, a year after coalition forces took Baghdad, the bad news seems to outweigh the good, but there have been many positive changes for Iraqis since the end of Saddam Hussein's regime. CNN's Jim Clancy looks beyond the doom and gloom.

(BEGIN VIDEOTAPE)

JIM CLANCY, (voice-over): Hundreds of thousands of Iraqi students have returned to refurbished classrooms where teachers are being paid a living wage. For the first time, schools are getting computers. But students say the security situation makes it difficult for them to take advantage of the improvements.

UNIDENTIFIED FEMALE: We are not safe. The driver who take us to college carry a gun with him in order to protect us. Really fed up from the situation. I don't know what's -- when it will be solved this problem. I don't know. And I'm hopeless. Believe me.

CLANCY: Some improvements don't hinge on security.

Electricity has been restored to levels well above those before the coalition invaded Iraq to topple Saddam Hussein. Clean water also widely available, sometimes in rural areas that never had it before the coalition arrived.

Newspapers and the media are flourishing, there are estimated to be around 200 newspapers published, representing views that Iraqis were never able to hear before. Telephone communications not only restored, but international links are available that were never possible before. And there are several major cellphone providers, as well.

Internet access, unheard of under Saddam Hussein, is now open along with dozens of Internet cafes, allowing users without computers to get on the Internet for communication and research.

Iraqi hospitals, they have seen some improvement, although much more is expected on that front in the coming year. The U.S. is preparing to spend more than $1 billion on new and existing healthcare facilities.

One of the biggest changes Iraqis see is that their own security forces are being trained and ready, but they are not ready yet.

(on camera): A year after arriving here, some members of the U.S.-led coalition say they can't fix everything. They complain that too many Iraqis are standing on the sidelines watching and waiting instead of seizing the opportunities already taking shape in their country. Jim Clancy, CNN, Baghdad.

(END VIDEOTAPE)

FIRFER: We'll look how England is handling its security problems, especially with the Easter weekend and the...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): Last year, I came here after the eradication with teams from the international community. And we promised to help the farmers. But we did nothing. And now our reputation is damaged.

(END VIDEO CLIP)

FIRFER: Nation building or poppy field building? The cost of doing too little in Afghanistan.

And then, do you have a last-minute tax question? Well, we've got the answers for you. E-mail your questions to dollarsigns@CNN.com or call us at 1-800-807-2620. We'd love to hear from you. We'll be right back.

(COMMERCIAL BREAK)

FIRFER: Some headlines from across America. In Fresno, Californis, the lead attorney for a man accused of killing nine of his children insists his client is innocent. On March 12, police found the victims all shot once through the eye and Marcus Wesson covered with blood at his home.

New York: fromer counterterrorism expert Richard Clarke's book questioning the Bush administrations priorities in fighting terrorism may soon become a movie. Sony Pictures Entertainment has bought the rights to the best seller "Against All Enemies."

Jackson, Mississippi: a U.S. marshall defends one of his deputy who forced the erasure of recordings to reporters of a speech made by Supreme Court justice Antonin Scalia, but the martial concedes that Scalia's request that he not be recorded should have been announced before his speech on Wednesday.

Well, across the Atlantic, British police are on heightened alert, conducting anti-terror raids and imposing new security measures.

(BEGIN VIDEOTAPE)

SHEILA MACVICAR, CNN CORRESPONDENT (voice-over): This is Sheila MacVicar in London. For months, British officials have warned a terror attack in the U.K. is quote, inevitable. British police will not discuss specific measures, but security has been strengthened with a more visible police presence. And for London's Underground, a new campaign to promote public awareness of security.

This week, the head of the Metropolitan Police said in an interview that, quote, "Britain was now in a state of real danger." His remarks were published a day after security sources confirmed British police had foiled a plot to explode a bomb laced with a potential lethal chemical. And last week, police seized half ton of fertilizer which can be used as an explosive. Six men, all British, including a 17-year-old, have now been charged with conspiring to carry out an attack.

Sheila MacVicar, CNN, London.

(END VIDEOTAPE)

FIRFER: And five of the men who were arrested in last week's terror sweep across england appeared in court for the first time today. Their lawyers did not ask for bail.

Well, some other news around the world. In Siberia, a deadly mine blast: the Russian Interfax News Agency says a methane explosion killed at least 28 coal miners earlier today. Russian officials say more than 20 are still missing. Eight miners were rescued. Rescue operations were hampered by debris scattered near the entrance to the mine shaft. And in southern Iraq, a surprise Easter visit. Italian prime minister Silvio Berlusconi made an unannounced visit to Nasiriyah today. He flew in early, greeted the troops, joined them for lunch and then left the country a few hours later. Some 2,900 Italian troops are based in Nasiriyah.

In Afghanistan, despite efforts by the government and the international community to eradicate the opium trade, the country's most lucrative cash crop is growing and may even yield a record harvest. Senior international correspondent Nic Robertson reports.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Starting the first furrow, an Afghan farmer begins destroying a field of opium-producing poppies. Soon bogging down, as the narcotic crop flooded only hours earlier. This is the opening salvo in the Afghan government's drive to eradicate 25 percent of all poppies, muirering in more than just mud.

UNIDENTIIFED MALE (through translator): People will rebel against the government if they destroy all the poppies and don't help us solve our problems.

ROBERTSON: Another farmer complains poverty drove him to poppy cultivation for the first time this year.

He's not alone. This year, Afghan and international officials say production is up: 28 out of the country's 32 provinces growing the narcotic, some for the first time.

(on camera): Turning over these feels is really a drop in the ocean. These tractors will destroy about ten kilograms of opium, that's about 20 pounds in this field. Last year, Afghan farmers produced a massive 3,600 metric tons of opium.

(voice-over): Selling for between 200 and 800 dollars a kilo, opium is big business. An estimated $30 billion a year. Half of Afghanistan's GDP.

UNIDENTIFIED MALE (through translator): Last year, I came here after the eradication with teams from the international community. And we promised to help the farmers. But we did nothing. And now our reputation is damaged.

ROBERTSON (voice-over): The next month is going to be critical if eradication targets are to be met this year. From what we've seen in this Afghanistan's biggest upony-producing province, significant destruction is still far from a reality. Nic Robertson, CNN, Helmund (ph) province, Afghanistan.

(END VIDEOTAPE)

FIRFER: Much of the country watched Condoleezza Rice this week as she testified before the 9/11 commission. But did you catch the buzzwords? We did. And coming up, at 4:30 Eastern, call us or e-mail us with your last-minute tax questions. Yes, the deadline looms. Our e-mail address, dollarsigns@CNN.com. Our phone number 800-807-2620. Back after the break.

(COMMERCIAL BREAK)

FIRFER: Next week, the 9/11 commission is scheduled to hear from some major players in U.S. law enforcement and intelligence gathering, CIA director George Tenet is among those scheduled to appear during two days of hearings starting Tuesday. FBI Director Robert Mueller is also scheduled to be in the hot seat. The performance of the CIA and FBI has already been the focus of a prior congressional probe.

Last Thursday's testimony by national security advisor Condoleezza Rice created quite a buzz in both the world of politics and the American vernacular. Here's a sample.

(BEGIN VIDEOTAPE)

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: He told me he was tired of swatting flies.

RICHARD BEN-VENISTE (D) 9/11 COMMISSION: You said the president was tired of swatting flies. Can you tell me one example where the president swatted a fly when it came to al-Qaeda prior to 9/11?

RICE: I think what the president was speaking to...

BEN-VENISTE: No, no. What fly had he swatted?

RICE: Well, the disruptions abroad.

There was no silver bullet that could have prevented is the 9/11 attacks.

I don't agree that we know that we had somehow a silver bullet.

It was not going to be a silver bullet to kill bin Laden.

Somehow maybe we would have gotten lucky by shaking the, quote, shaking the trees. Dick Clarke was shaking the trees. Director of Central Intelligence was shaking the trees.

It's questionable to me whether the argument that has been made that somehow shaking the trees is what broke up the millennium period is actually accurate. I don't think it was shaking the trees.

And was meeting with him and I'm sure shaking the trees.

UNIDENTIFIED MALE: If all of his recommendations during the transition or during the period when his hair was, quote, on fire, had been followed immediately, it have prevented 9/11, he said no. Do you agree with that.

RICE: I agree completely with that. (END VIDEOTAPE)

FIRFER: And now to the buzz at the Master's. Fans are gathered at Augusta National to see if Englishman Justin Rose stays the course on the leaderboard in today's third round of the masters. For the crowds, the most moving moment of the tournament came yesterday when Arnold Palmer finished play in his 50th and final Masters.

At 74 years old, an 18 over par, he knew he wouldn't make the cut, but for his fans, it was enough to see him walking Augusta National one last time. Here's our Josie Burke.

(END VIDEOTAPE)

JOSIE BURKE, CNN SPORTS CORRESPONDENT (voice-over): Near the end of his final round at the masters, the shin splints that made Arnold Palmer feel 74 years old disappeared. By the time he walked up 18 for the last time, a flood of memories made Palmer feel young again.

ARNOLD PALMER, 4 TIME MASTERS CHAMPION: If you just use your imagination, you would understand that emotion. I've thought about how many times I've walked up that 18th fairway.

BURKER: Palmer may return to Augusta as an honorary starter in the future, or for Tuesday night champions dinners. He says he won't play again, but promised he'd never really leave.

PALMER: I don't think that I could ever separate myself from this club and this golf tournament. I might not be present. I may not be here, but I'll still be a part of what happens here.

TIGER WOOD, 3 TIME MASTERS CHAMPION: Jack and I were talking about that, and how he's not giving himself a hernia stopping a club that quick, you know? For him to be out here playing, I mean, it's great for the game of golf.

BURKE: Friday may have also ended the Masters career of the man with more green jackets than any other. Six-time winner Jack Nicklaus said he might be done, as well.

JACK NICKLAUS, 6 TIME MASTERS CHAMPION: This is arnold's day. Let him have his day and if I walk away, I walk away. I may have played my last round. We'll just see.

PALMER: It's done. And I won't say I'm happy it's done. It's time for it to be done for me.

BURKE (on camera): Palmer said the most meaningful part of his farewell was that all of his children and all of his grandchildren were there to share it with him. Josie Burke, CNN, Augusta, Georgia.

(END VIDEOTAPE)

FIRFER: And he will be missed.

Well, almost time for "Dollar Signs." Today, got some tax questions? we've got answers for you. Call us at 1-800--807-2620 or e-mail your questions to dollarsigns@CNN.com. Be right back.

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