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CNN Live Saturday

Search For Missing Utah Woman Continues; 9/11 Commission Demands Quick Response To Recommendations; New York Cabbie Finds, Returns Priceless Jewels

Aired July 24, 2004 - 12:00   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.


FREDRICKA WHITFIELD, CNN ANCHOR: It is 12:00 p.m. in Boston, 11:00 a.m. in Crawford, Texas. Welcome to CNN LIVE SATURDAY, I'm Fredricka Whitfield at CNN's global headquarters. Ahead this hour, live from Boston as the city prepares to host the DNC, amid security concerns and new controversy involving "al-Jazeera's" convention coverage.
Also, the potential bounce from the convention for the Kerry- Edwards ticket. What they need to do to connect with voter, particularly the undecided.

And later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Watching somebody who is losing the capacity to think and to reason and to relate is excruciatingly painful and difficult.

(END VIDEO CLIP)

WHITFIELD: The long good-bye of Alzheimer's. In depth on dealing with the struggles of caring for someone with Alzheimer's as new treatment options become available. But first, a look at the stories now in the news.

Reports of a new hostage taken in Baghdad this morning. Gunmen abducted the leader of a government-owned construction company. He's identified as Rod Annan of the al-Mansour Contracting Company. The ministry says he was captured while driving to work.

Charges Jenkins, who deserted his post in the U.S. Army nearly 40 years ago in South Korea, is being urged to make a plea bargain. That's according to Japanese officials in Tokyo where he traveled for medical treatment. The U.S. Military could pursue prosecution for desertion years ago. Meantime doctors in Japan are giving him a clean bill of health.

The Energy Department is halting classified operations at its Los Alamos lab in New Mexico. Missing computer disks have led to a security crisis. The lab involved does secret work on nuclear weapons research. Keeping you informed, CNN, the most trusted name in news.

(BEGIN VIDEOTAPE)

ANNOUNCER: America Votes, 2004. This is CNN's live coverage of the Democratic National Convention.

(END VIDEOTAPE)

WHITFIELD: We begin with the democratic kickoff. John Kerry and John Edwards are crisscrossing the country en route to Kerry's planned dramatic entrance to the convention hall on Thursday, where he is said to accept the nomination. Kerry says he plans to present a positive view of America in the run-up to the convention.

And now to the Fleet Center fortress in central Boston. A huge section of the city is going under a virtual lockdown two days before the democrats convene. The first presidential nominating convention since the 9/11 attacks. CNN's Bob Franken has the latest now -- Bob.

BOB FRANKEN, CNN CORRESPONDENT: And I'm at a subway stop called they call the "T," here, and what you're going to see in back of me, what you to see in back of me is will become more and more rare, and that is the presence of Bostonians in Boston. They're being asked to stay home because of what you describe as the lockdown. Streets are going to be closed. The main artery I-93 in and out of the city, that's going to be shut down in the hours around, during, and after the convention, each of its days. There is a massive security presence, here. It goes from the sky, where jets will be flying; to below the ground where people will have random checks of their bags on the subways. They're leaving little to chance.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): The fondest hope for democrats is that their message from inside the Fleet Center is not overwhelmed by what happens outside and there is massive security to make sure that the big story is the political one. On occasion, it gets real strict.

Thousands of police, local, state and federal, visible and invisible are turning Boston into fortress Boston. Much of Boston will simply be shut down. The major highway that has become the city's in and out artery will be closed to traffic around and during convention hours because it passes by the Fleet Center. In fact, workers are being asked to stay home for the duration, and a lot of business people are not happy about that at all. The various protest groups are infuriated over what they call their "holding pen," a fenced in area across the street from the Fleet Center.

The subway station at the site will be closed. Fences are going up around critical buildings and officials are working feverishly to identify threats before they become attacks. One of the latest, says the FBI, is unconfirmed intelligence that someone may be planning to attack a large camp of media trailers with incendiary devices.

(END VIDEOTAPE)

FRANKEN: Simple fact of the matter is that it's going to be a real hard time getting from here to there, but democrats and security officials are hoping that whatever hard feelings there are outweighed by the good feelings democrats have from their convention -- Fredricka. WHITFIELD: Bob Franken in Boston, thanks very much.

John Kerry and John Edwards are traversing the nation before ending up in Boston. Right now the Edwards campaign is in Milwaukee, Wisconsin. CNN's Elaine Quijano has the latest from there.

Hello to you Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hi there, Fredricka. Senator John Edwards is back in familiar territory, Wisconsin, a key battleground state in which Senator Edwards spent a lot of time during the run-up to the primary and in which -- a state in which he actually had a very strong finish behind John Kerry. Well now he is reaching out to voters once again in this state on behalf of John Kerry.

Last night Senator Edwards, after a push with John Kerry out in Denver, Colorado, he raised some $250,000 here in Milwaukee at a fund- raiser, and today he will be speaking at a rally at Martin Luther King, Jr. Park, here in Milwaukee, part of the continuing roll into the Democratic National Convention.

Now, here in Wisconsin, we're told that Senator Edwards will focus on several issues including jobs and healthcare, part of the Kerry-Edwards plans including the creation of 10 million new jobs over the next 10 years and in doing so, aides say, they would cut the deficit in half and grow the economy. Now, healthcare, another focus for Senator Edwards today, we're told the democrats looking to reduce the cost of health care for small businesses. Now, Senator Edwards running mate, John Kerry also campaigning this weekend in Sioux City, Iowa, an appearance scheduled there before moving on to Columbus, Ohio. All of this again, Fredricka, part of that renewed push to reintroduce John Kerry to the American people ahead of the Democratic National Convention -- Fredricka.

WHITFIELD: Elaine Quijano, thanks very much from Milwaukee.

On now to Salt Lake City where family members, specifically the mother of Lori Hacking, the missing jogger, is speaking right now -- this is Thelma Soares.

THELMA SOARES, LORI HACKING'S MOTHER: In the last few days, I think first day they told me there were 20 pages of leads. I don't know how many have come in the ensuing days. Those leads, of course, have been given to law enforcement to pursue and one of these leads will -- one of these leads will help us find Lori, wherever she is. Thank you so much for your help.

HAROLD SOARES, LORI HACKING'S FATHER: Before I make a short statement, I would like to thank you, all the people in this beautiful state of Utah, mainly the people here in Salt Lake City, for the love and kindness that you have shown to me and to my family. I would like to -- from the bottom of my heart to thank every single one of you who are volunteering to the police department of Salt Lake City, the sheriff's department of Salt Lake City, to the news media who has been helping us by showing the pictures of Lori out there and from the -- I remember you from as long as I live, I'll remember you, in my prayers, wishing for the best. And as you volunteers are searching for my daughter, I pray that you don't get hurt and that you have the blessings of our heavenly father to go in the right track and find her and bring her home.

We have still not found Lori and we need your help. And I beg you to come out and help us. No we can't -- and bring your families with you, you know, as like you're going hiking or what, but come out and help us. We need you. We need to find her. She's out there and I know everything is OK with her. And I need you guys to find -- help us bring her back to us. And I'm so thankful for these help.

I saw mark yesterday. We hug, we said we love each other, and that is the next kind is kind of a private and I would appreciate that maintaining as a private. Thank you so much.

UNIDENTIFIED MALE: So those that would like to ask any questions, we'd be more than happy to entertain those if you'd like.

WHITFIELD: All right, you've been listening to the family members in what is obviously a very difficult time as the search continues for Lori Hacking. She was last seen on Monday, apparently leaving the house to go jogging. None of the family members have seen or heard from her since. The husband, Mark Hacking, continues to get psychiatric treatment in a hospital, and you heard from the family members right there, the parents of Lori Hacking who talked about them being able to most recently talk to Mark, but those words are private, the words exchanged between them, however they did hug and they did express their love for one another. But family holds out hope that something will arise about the whereabouts of Lori Hacking.

We're going take a short break right now.

(COMMERCIAL BREAK)

WHITFIELD: In the wake of the 9/11 Commission's final report, a sense of urgency in Washington. In the middle of their scheduled recess, House and Senate committees will return to the Capitol in August for an unusual round of hearings. They'll focus on two of the commission's key recommendations, the creation of a National Counterterrorism Center and a new cabinet level intelligence director. Lawmakers recess is now through Labor Day.

Well, just hours after the 9/11 Commission released its final report, President Bush put the wheels in motion for a national task force to review the recommendations. That issue, is the focus of Mr. Bush's weekly radio address, and CNN White House correspondent Suzanne Malveaux joins us now from the president's ranch in Crawford, Texas -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well Fred, while the democrats take center stage this week, President Bush is largely going to be out of the spotlight at his Crawford ranch. But, White House officials making it clear he is dealing with the 9/11 Commission's recommendations, that he has a copy of that report, of course, that he has been pouring through. The president also initiating a special task force to consider those recommendations. The president saying that he needs that task force to get back to him promptly. That task force, of course, is led by his chief of staff Andy Card as well as their members of a Homeland Security team and National Security team and other high-level officials. We are also told that National Security Adviser Condoleezza Rice is going to be at the Crawford ranch on Monday, she'll be joining the president. We're told that they're going to continue to pour over those recommendations. But the president today, making it very clear at his radio address that he believes his administration already is addressing some of those issues that the commission is seeking.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have already put into action many of the steps now recommended by the commission and we will carefully examine all the commission's ideas on how we can improve our ongoing efforts to protect America and to prevent another attack.

(END VIDEO CLIP)

MALVEAUX: Now as the president's democratic opponent, John Kerry, gears up to formally accept his party's nomination, he too and the democrat response today, pitching forth that he's the stronger candidate when it comes to healthcare and education and other domestic issues, but also as well, framing himself as someone who is strong on national security.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We value a strong military and strong alliances so that America never has to go to war because it wants to, but only because we have to. These aren't democratic values and they're not republican values, they're American values.

(END VIDEO CLIP)

MALVEAUX: Now of course the priorities here are two things for the Congress, as well as the administration. First, to look at the assemblence of a national counterterrorism task force and then secondly to look at that proposal to create a national director of intelligence. That, Fred, still a point of controversy, the head of the Homeland Security Department, as well as the CIA acting director, both say they do not believe that is necessary. That is something that the White House is carefully considering. But the big question here, Fred, of course is just how quickly this administration, this Congress can respond. There are signs that they're going to be working on this as quickly as possible, but just in case the chairman at that 9/11 Commission, Governor Kane, saying that they are going to have an all-out lobbying effort in the fall to hold them to the fire -- their feet to the fire to make sure they get this done as soon as possible -- Fred.

WHITFIELD: And Suzanne, outside of those recommendations, there is some real pressure on the Bush White House to appoint a permanent CIA director. Apparently a letter was sent by a democratic senator, John Rockefeller.

MALVEAUX: Well, absolutely. There is pressure from both sides, republicans and democrats, who say look, an acting CIA director just is not going to be satisfactory here when you're talking about a nation in these kind of alerts that really needs to be better prepared in a terrorist attack. The administration has heard that, they've got a short list of candidates and also it is expected that they are going to be releasing some sort of information on that fairly soon, but it is likely it is going to happen after the Democratic National Convention.

WHITFIELD: All right, Suzanne Malveaux from Crawford, Texas, thanks very much.

Well, President Bush says all the recommendations in the new 9/11 report are on the table and under consideration, as we just heard. With more on reaction to the report we go to our guest who is a UPI national security editor, Shaun Waterman, joining us from Washington.

Good to see you.

SHAUN WATERMAN, UPI NATIONAL SECURITY EDITOR: Good to be on, Fredricka.

WHITFIELD: All right, Well, I understand you believe some of the priorities that need to be made, based on some of the recommendations, include improved border and transportation security. But these are not likely to be the issues that special hearings will undertake on Capitol Hill in August.

WATERMAN: Well, these are among the recommendations that the commission says can be implemented by the executive, they don't need legislation. The biometric -- the proposal is for a seamless biometric border. Anyone entering or leaving the United States will -- including U.S. Citizens, will have to biometrically confirm their identity, their travel documents will be encoded with digital fingerprints and photographs and in a phrase that set alarm bells ringing among the civil libertarians, they also call for this biometric border to be integrated into a nationwide system of checkpoints which will control access to government buildings, critical infrastructure, and the nation's transportation system, raising...

WHITFIELD: In your reporting are you finding that these changes need to be made now as opposed to waiting until later, possibly even next year when some of the other recommendations would go into place?

WATERMAN: Well the -- I mean, that's -- that's a matter for the administration, that's what this task force is going to decide. There are obviously -- there will be prioritizing recommendations that can -- that they can move on right away. The U.S. Visit, the department of Homeland Security's entry/exit biometric entry/exit system is already on track to be complete by the end of next year. So, I mean, that one is already moving forward, but it's the -- it's the question of integrating the border with these internal controls which, I think, is likely to prove a point of some controversy. WHITFIELD: And Shaun, the report also asks for better cooperation and coordination by way of one big network between agencies and branches of the federal government. Is this a pipe dream?

WATERMAN: Well, the recommendation is really for a computer revolution in the federal government. For a network of a single computer network so that in theory, and technically, it would be possible for any federal employee to access any piece of data held anywhere in the federal government.

WHITFIELD: And you underscored that's in theory, but does anyone, based on your reporting, feel that it could be a reality?

WATERMAN: Well, I mean, it's technically entirely feasible. The question is, you know, whether -- I mean, for example, the FBI has had huge problems with its information technology. The Trilogy System planned years ago still not -- still not complete, so in practice, there'll be many a slip between the cuff and the lip, I'm sure.

WHITFIELD: Shaun Waterman a UPI homeland and national security editor, thank you for joining us from Washington.

WATERMAN: Pleasure, Fredricka.

WHITFIELD: Rallying the faithful and trying to reach the undecided as the finishing touches are being put on the Fleet Center in Boston. What type of bounce can the candidates expect from next week's convention? We'll take a closer look when we come right back.

(COMMERCIAL BREAK)

WHITFIELD: One of the most popular news channels in the Middle East is finding itself at the center of controversy in this country, Inside the convention hall in Boston. The story from CNN's Tom Foreman.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): As final preparations are made on the convention floor, missing from the fray literally is any sign of "al-Jazeera." The Arabic news service had hung its banner alongside those of other news organizations, but now the democrats have taken it down. "Al-Jazeera's" coverage of Iraq and the war on terror have been controversial in the U.S. Still, the organization says it had approval for a banner featuring its name and logo. Al-Jazeera's spokesperson says, "We were not alerted that the banner was being removed" and "This is very disappointing."

The Kerry campaign however, says several signs were removed to improve the look of the convention center. "This is not specific to 'al-Jazeera,'" a Kerry spokesperson says, "There were a number of different signs taken down. Including one for the Democratic Party according to a convention organizer."

(on camera): Still, "al-Jazeera" was the only news organization to have its sign removed. And the news group right next door still has one.

(voice-over): An "al-Jazeera" spokesperson said they understand the decision is final, but added, we just hope the republicans don't do the same thing.

Tom Foreman, CNN, Boston.

(END VIDEOTAPE)

WHITFIELD: Well, the democratic convention which opens Monday is John Kerry's moment of opportunity. Four days of free air time, he gets to introduce himself to undecided voters and persuade others he has the experience and judgment to run the country. Ron Brownstein is a CNN political analyst and columnist for the "Los Angeles Times" and joins us from Washington.

Good to see you, Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Hey, Fredricka.

WHITFIELD: All right, you say this convention is perhaps the single most important event for the challenger. Why?

BROWNSTEIN: Well you know, conventions used to be important for what happened inside the hall, they were the place where the nominee actually got selected. Now, of course, that's done by voters in the primaries and caucuses and the conventions have become important for what happens outside the hall. They are the best opportunity for the candidates, especially a challenger to tell his story, explain his agenda in a systematic and coherent way.

John Kerry has been out there campaigning for months; he spent a lot of money on television and yet in all the polls we see that many voters still have only fragmentary impressions of him. This really is the opportunity for him to make himself, as one democratic consultant said to me, a three dimensional figure for Americans. If he doesn't do it this week it hard to see when he'll have as good an opportunity again.

WHITFIELD: But, how will that image be any different people have seen him for six to seven months campaigning?

BROWNSTEIN: Yeah, we've seen him for six to seven months and the people who have been watching CNN carefully, reading the "L.A. Times" carefully, but you know, when we polled last week, national poll in the "L.A. Times," very similar in the horse race to CNN, we found 35 percent of Americans still said they don't know enough about John Kerry to decide whether he'd be a better president than George Bush. The campaign this year has been largely overshadowed by real world events, primarily Iraq. I think Kerry is still, as I said, a very fragmentary presence for many Americans. He's got to figure out a way to tell his story so voters feel, I think, more connected to him and also feel confident that he is someone that can lead the country in turbulent times.

WHITFIELD: And when we talk about telling his story, are we talking about he needs to make it clear where he stands on the issues, on certain policies, or is this really an opportunity for him to just humanize himself, really allow people to get to know him just on a ordinary human basis?

BROWNSTEIN: I think most convention planners in both parties would say it's the later that really is the task here. It's bringing himself alive in the sense of showing what matters to him and also trying to connect the two choices that you lay out by arguing that his agenda is an outgrowth of his experiences and his values. You can see the lines of argument he's developing, that his career has exemplified a lifetime of commitment to public service and that his agenda is an outgrowth of that. But ultimately, I think that they feel above all they want people to know Kerry better and to trust him on a personal level. I think that is what they're trying to achieve this week more than anything else.

WHITFIELD: So, his running mate, John Edwards, speaks on Wednesday, Clinton gets it started on Monday, and Kerry on Thursday. Does it matter who gets the most attention?

BROWNSTEIN: Well, you know, I think historically it really is the candidate's speech that matters here, because this is such a personal moment for them. The other things, the other speakers can tout him; they're going, as you know, to have a large emphasis on the veterans who served with him in Vietnam, especially on Thursday night. Others can sort of sing his praises, but in the end what he does when the spotlight is on him is going to be the determinant, I think, of success or not for this convention.

WHITFIELD: So it's a given in your view there will be a post convention boost?

BROWNSTEIN: Well inevitably, there will be some, but there's some dispute between the two campaigns about how we measure this. Historically in Gallup Polls, the CNN/Gallup Poll together, of course, the challenger can expect about a six point increase in his share of the vote, which would take Kerry from 47 percent, in your last three- way poll, to about 53 percent. The Kerry campaign says, look, it may not be that big because the country is so polarized because the race has been going on so long. But, what they're hoping for is some of the lower -- the internal measures, more favorability for Kerry, more confidence in him, those things that would stand him well when Bush comes back with an counterargument later in the campaign.

WHITFIELD: Ron Brownstein of the "L.A. Times," joining us from Washington. We'll be seeing a lot of you over the next few days. Thanks a lot, good to see you.

BROWNSTEIN: Thank you.

WHITFIELD: Well, stay with CNN, your election 2004 campaign headquarters. Coming up later today, the "Capital Gang" is live from Boston, that's at 7:00 p.m. Eastern, 4:00 Pacific.

And tomorrow night, join Wolf Blitzer and Judy Woodruff for a special preview of the Democratic National Convention, and that's at 10:00 p.m. Eastern, 7:00 Pacific.

In Iraq, there is news of more kidnappings as the fate of seven hostages hangs in the balance. Coming up, we'll go live to Baghdad for the latest.

Was it a case of nerves onboard a cross country flight or was there a real security threat? We'll tell you about the story that sparked a cool FBI probe.

And this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: When I open it up, I lo and behold I saw black pearls right there, and I said "Gee."

(END VIDEO CLIP)

WHITFIELD: Right before his eyes. A New York cabbie, a backpack, and thousands of dollars in lost pearls. We'll tell you about this nice guy who finished first a bit later. This is CNN LIVE, today, Saturday.

(COMMERCIAL BREAK)

FREDRICKA WHITFIELD, CNN CORRESPONDENT: Hello, I'm Fredricka Whitfield at the CNN center in Atlanta. Here is what is happening now in the news. On the heels of the 9/11 Commission report, some House and Senate lawmakers will interrupt their summer recess to hold hearings on intelligence reform. The August hearings will focus on creating a director of intelligence and a national counterterrorism center.

The ranking Democrat on the Senate Intelligence Committee has asked President Bush to nominate a new CIA director as soon as possible. Senator John Rockefeller says acting CIA Director John McLaughlin is capable, but cannot be expected to lead the agency through a fundamental realignment.

Kobe Bryant's lawyers will be allowed to present evidence about his accuser's sexual activity in the three days before her rape examination. The judge's ruling is significant victory for the defense. It claims the woman had sex with at least two other men after her encounter with Bryant.

Barring catastrophe, Lance Armstrong will ride into Paris tomorrow winning his six consecutive Tour de France. He came in first today, a cyclist pedaled a 34 mile course. Armstrong as overall leader set off last today in the individual time trials five hours behind the first racer. Keeping you informed, CNN, the most trusted name in news.

Insurgents are using hostages as pawns in their strategy to cause havoc in Iraq. An Iraqi construction chief was kidnapped today and officials are trying to negotiate the release of an Egyptian diplomat and seven other captives. CNN's Matthew Chance is live from Baghdad with the very latest on that. Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Fredricka, thank you. And the hostage crisis here in Iraq does indeed seem to be spiraling with Iraq's interim Prime Minister Ayad Allawi urging Egypt not to bow to the demands of the kidnappers, kidnappers who seized one senior Egyptian diplomat here in Baghdad on Friday after he was coming out of a mosque. He's been named as Mohamed Mamdouh Qutb, the third highest ranking diplomat in the diplomatic mission of Egypt here in Baghdad. The militant group that took him says they did so in response to Egypt's offer of security assistance to the new Iraqi interim government. Speaking in Damascus, the Syrian capital where Mr. Allawi is meeting President Assad of Syria, The Iraqi interim prime minister urged Egypt to stand its ground.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, IRAQI INTERIM PRIME MINISTER: The only way for -- to deal with terrorists is to bring them to justice And to close ranks and this is where we hope that Egypt and the Egyptian government would act accordingly. We know this is very sad. We hope that the hostage will be released unharmed. The Iraqi government will do its best to secure this, but we are not going to give up.

(END VIDEO CLIP)

CHANCE: Of course, there are other hostages being held in Iraq as well, notably the seven truck drivers, three from India, three from Kenya and one other from Egypt, being held by an apparently separate militant group. Intensive negotiations under way by diplomats from those countries in order to try and secure the release of those seven. Also, as you mentioned, there has been another hostage taken. This time the chief of a state-owned construction company here in Iraq. He was abducted by men, armed militants apparently on the streets of the Iraqi capital, Baghdad. As I say (ph), these various militant groups step up their kidnapping activities across the country. Fredricka.

WHITFIELD: Matthew Chance in Baghdad, thanks for that update.

A check now of other news around the world. A deadly explosion targets a bus carrying teachers and school workers in Pakistan. One person was killed and seven others hurt by the remote controlled bomb, another person in a separate car was also wounded.

In the Middle East, an armed standoff by Palestinian militants and security services is over. They briefly seized the governor's office in southern Gaza today. Palestinian sources say they left after leader Yasser Arafat confirmed none of the security forces would lose their jobs.

And in Spain, police reportedly find a car used by bombers in the March 11 attack in Madrid. The "El Mundo" newspaper reports the car was used to transport explosives. However, police may have lost valuable evidence from that vehicle.

The war on terror has forever changed air travel. All passengers are routinely checked unlike before. But where is the line between suspicion and paranoia? A group of Arab men recently raised a lot of concerns on a flight from Detroit to Los Angeles but they apparently are nothing more than a band of musicians. The story from CNN's Miguel Marquez.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: There is no question, something happened on Los Angeles bound flight 327.

KEVEN JACOBSEN: was uncomfortable when we started boarding and when I saw how many Middle Eastern men there were.

MARQUEZ: Keven Jacobson and his wife Annie were on the Northwest flight as was a team of Federal marshals who back up the Jacobson story.

DAVE ADAMS, FEDERAL AIR MARSHAL SERVICE: They were acting suspicious. They were going in and out of the lavatories. They were standing up. They were going on the overhead bins. They were talking. They're congregating in the aisles.

MARQUEZ: So concerned Keven Jacobsen during the flight told attendants. They told him they too were watching the men. The cabin was aware and that marshals were on board. Then on final approach with downtown Los Angeles in sight, came the most frightening moment.

ANNIE JACOBSEN, WITNESS: Suddenly seven of these men are now standing. Four go to the forward bathroom, three go to the back, and very slowly, very consecutively they use the lavatory.

MARQUEZ: Annie Jacobsen, a financial writer, gave her firsthand account to a Web site. The reaction was an Internet phenomenon.

ANNIE JACOBSEN: We had something like 2 million page views on the second or third day.

MARQUEZ: The Federal air marshal service says the men never did anything criminal. They were questioned after the flight and their backgrounds checked against every available database. Its conclusion, the men were a 14 member Syrian band playing two gigs at a casino near Los Angeles.

ADAMS: The supervisor then went out to the casino, verified again that they were booked there, made sure they were playing at the casino.

MARQUEZ: But Jacobsen says terrorists could simply learn to play instruments and sees a bigger story.

ANNIE JACOBSEN: I would definitely be inclined to think it was a dry run, some kind of intelligence gathering.

MARQUEZ (on-camera): Federal officials say everything about the Syrian story checked out. And they have no reason to believe they were anything other than musicians acting strangely. Miguel Marquez, CNN, Los Angeles. (END VIDEOTAPE)

WHITFIELD: Facing the ravages of Alzheimer's.

(BEGIN VIDEO CLIP)

WENDY PANKEN, SUPPORT GROUP LEADER: Watching somebody who is losing the capacity to think and to reason and to relate is excruciatingly painful and difficult because it is what -- it is losing the person as the person is alive.

(END VIDEO CLIP)

WHITFIELD: And we'll take a closer look at the heart breaking decisions two families have had to face in saying their long good-byes to their loved ones.

(COMMERCIAL BREAK)

WHITFIELD: The recent death of President Ronald Reagan from Alzheimer's disease has drawn attention to the devastating ailment that robbed the president of his memories. For the first time since his funeral last month, his wife Nancy appeared in public yesterday. She greeted the new aircraft carrier USS Ronald Reagan as it arrived at its home port in San Diego. The former first lady has at times described how Alzheimer's claimed the former president's life long before he drew his last breath. That same story is being lived by millions of families across the United States now. CNN's Aaron Brown looks at two of them who had to decide when to let go.

(BEGIN VIDEOTAPE)

AARON BROWN, CNN CORRESPONDENT (voice-over): This is Michael Beder in 1995, a successful bond trader from New York City. This is Michael Beder now.

NICHOLE BEDER, MICHAEL BEDER'S DAUGHTER: For the most part he just lies or sits without really responding to stimulation.

BROWN: This was Heidi Kuykendall in 1993, a mother with a wide circle of friends in Hickory, North Carolina. This is Heidi Kuykendall now.

RANDY BRYANT, HEIDI KUYKENDALL'S SON: It was unbelievable how you could see just a real fast decline in her mental thinking. It was quite a shock.

BROWN: Both Beder and Kuykendall have had their minds stolen by Alzheimer's. Both had been in slow decline, dying for years and for both families, that has been painful choices about medical treatment and prolonging life.

BRYANT: That's the hardest decision I've ever made. And anyone who ever faces that decision, it is -- to decide to let your mother die when she -- you think she may improve is a terrible decision. BROWN: A year and a half ago Randy Bryant had to decide whether to keep his 89-year-old mother alive with a feeding tube. Randy Bryant said yes.

BRYANT: As long as someone tells you they love you and honey, and call you by your name, hey, could you kill them? I don't think so.

BROWN: Nicole Beder made a very different decision. Her father's living will helped her choose hospice care where he is kept comfortable but receives no antibiotics, no life prolonging medical treatment.

BEDER: I have a pretty good idea of what he would want. So while it can be emotionally difficult to follow through on some of his decisions, I'm confident that they are his. I guess, you know, as less and less things can make it through to him and can cause him to be happy, you know, there doesn't seem to be much point in being alive. You awake?

BROWN: At a relatively young age of 61, her father is still in good health physically, leaving his family with the burden of caring for him indefinitely.

MARTA CURBELO, MICHAEL BEDER'S EX-WIFE: It is very hard for me to see him at times in this place and to know or to think that my daughter is -- our daughter is in pain seeing her father so sick and so disabled when he was such a vibrant person.

BROWN: Nicole Beder attends an Alzheimer's care givers support group to cope with the gradual loss of a father who does not comprehend that she is expecting his granddaughter come October.

WENDY PANKEN, SUPPORT GROUP LEADER: Watching somebody who is losing the capacity to think and to reason and to relate is excruciatingly painful and difficult. Because it is what -- it is losing the person as the person is alive.

BRYANT: If you can imagine a train leaving, you have a loved one get in on the train and they're leaving the station and instead of that train traveling at 50 miles an hour or that train traveling and just rolling and rolling and rolling on the real slow pace and they can never seem to get out of sight as they wave to you.

BROWN: As you can see, making the decision between life and death is far from black and white.

BEDER: There are no wrong decisions. Every decision you make because you care about the person is the right decision. You just have to know if you're doing this out of love for the person, then you're doing the right thing.

BROWN: Aaron Brown, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: And there are an estimated 4.5 million people with Alzheimer's in America and many new treatments for Alzheimer's are being tried. CNN's Holly Firfer looks at the advances in Alzheimer's treatment tomorrow on "House Call." That airs Sunday morning at 8:30 a.m. And we'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: Well, listen up travelers with champagne tastes. We know that only the finest will do. "Travel and Leisure" magazine has surveyed its most sophisticated readers to come up with a list of the world's best destinations and accommodations. Hillary Geronemus is an assistant editor for "Travel and Leisure" magazine. She joins us from Time Warner center in New York. Good to see you.

HILLARY GERONEMUS, "TRAVEL AND LEISURE" MAGAZINE: Thanks for having me.

WHITFIELD: All right. Let's begin at the top with the best ranked destination resort overall, it being in South Africa. It is a game reserve park, right?

GERONEMUS: It is. It is (UNINTELLIGIBLE) game reserve and what is amazing is five of the top 10 hotels in the world are in South Africa and this one is the winner on its 35,000 acres on the edge of Cougar National Park where animals migrate with less restrictions. You're guaranteed to see the top five, the big five. It also is just purely luxury. It mixes colonial, African colonial luxury with contemporary designs. It is absolutely beautiful. They just added a spa, aptly named the bush spa, where you can pamper yourself while looking out into the wilderness. It is great.

WHITFIELD: Not your typical safari, not at all roughing it. All right. , the best hotel in the continental U.S. and Canada, you find it in Chicago.

GERONEMUS: Chicago, it's the Peninsula Chicago and this hotel is just a couple of years old. But it is a great hotel. It lives up to the Peninsula brand. It is classy. It's opulent. It is right on the magnificent mile. There is the rooms are large. They're known for their large rooms. A small starts at about 530 square feet, which is pretty large if you live in a New York City apartment like myself. It's also got a great spa, 14,000 square foot spa on the top of the building with floor to ceiling windows that you overlook the city of Chicago and Lake Michigan. It's beautiful.

WHITFIELD: So it sounds like if you've got a spa, then at least that puts you somewhere in the top rankings.

GERONEMUS: Exactly. Everyone wants a spa.

WHITFIELD: Best city in the world overall, a place of the last Olympic games.

GERONEMUS: It is. It's the umpteenth time, it's Sydney. Our readers love Sydney and it is not hard to see why.

WHITFIELD: Why? GERONEMUS: It is a clean city. The people are friendly. The food -- the Asian influenced food is phenomenal and it is also affordable which really goes a long way. I think last I checked the American dollar was equal to a 1.4 Aussie dollar so it goes a long way when you're over there. And there is also great new things happening, a great new restaurant called the Iceberg. It's right on Bondi Beach. It's in this modern design and people are loving it.

WHITFIELD And it really is a springboard for New Zealand which also gets top rankings for a lot of travelers out there too.

GERONEMUS: Exactly.

WHITFIELD: All right, best city in the U.S. and why a I surprised, but New York. I would have thought maybe -- I would have thought something a little bit more rustic.

GERONEMUS: No. Our readers love New York. And it is not hard to see why again. It is a city that never sleeps. It's always reinventing itself. So when tourists come, they can see something new every time. Just take the building we're in right now, the Time Warner center. It's the biggest news. It's home to CNN. It's home to the new Mandarin Oriental and also great restaurants by Thomas Keller and John George.

WHITIFIELD: OK, I guess when I was talking rustic, I really mean like natural beauty or something like that. All right, best cruise lines, Crystal Cruises. Why does this stand out among the others?

GERONEMUS: Well, this is incredible because Crystal Cruises has won nine years in a row and the survey has only been going for nine years. So (UNINTELLIGIBLE) say our readers love Crystal Cruises. It is a beautiful line. It has three ships, the Serenity, the Symphony and the Harmony. And it is just beautiful. It knows how to treat their guests. You feel like you're on a small ship even though it is a large ship. You got that white glove treatment. The newest ship, the Serenity, which launched last year, has a restaurant by Nobu (ph). It has the Creative Learning Institute which brings experts on board and they sail all over the world.

WHITFIELD: Hillary Geronemus of "Travel and Leisure" magazine, thanks so much for joining us from New York. And just to round it all out, the best overall island is Bali despite the terrorism and the threats.

GERONEMUS: Bali is the best.

WHITFIELD: Hillary, thanks very much. Appreciate it.

GERONEMUS: Thank you for having me.

WHITFIELD: Well, in the market for a new job? Perhaps find out how to make the move without digging yourself into a financial hole. It happens, you know, "Dollar Signs" takes your calls and your e-mails today at 4:30 Eastern time. So send us an e-mail to dollarsigns@cnn.com or you can call us but not until 4:30 Eastern time. That number is 1-800-807-2620.

Lost? Well tens of thousands of dollars in rare black pearls were. Coming up, the cabbie who found the pearls and his reward that changed his life forever.

(COMMERCIAL BREAK)

WHITFIELD: Well, if you think your cabbie's job is to take you for a ride, well, think again. Our Jason Caroll explains.

JASON CAROLL, CNN CORRESPONDENT (voice-over): It was a night on the town with friends, Lawrence Policastro had dinner and drinks, then hailed a cab and headed out for more.

LAWRENCE POLICASTRO, CAB PASSENGER: We got out and we tipped the cabbie and we went into the Mercury Lounge and ordered some drinks and all of a sudden it just -- it was like, oh my God, where is -- where is my backpack?

CAROLL: This is what was inside, black pearls, $76,000 worth. Policastro picked them up earlier that night as part of a business venture.

POLICASTRO: I was pretty sure that it was left in the cab and gone forever.

NESTOR SULPICO, CAB DRIVER: When I opened it up, I lo and behold I saw black pearls right there.

CAROLL: Nester Sulpico was the cabbie who picked up Policastroa that night.

SULPICO: It was a treasure trove right there.

CAROLL: Buried in the treasure, the owner's cell phone. Sulpico used it to find the rightful owner.

SULPICO: I called the phone right away.

CAROLL: Sulpico says he was never tempted to keep the jewels even though he is struggling to make money to send home to his daughter in his native Philippines.

SULPICO: I believe that what I did, that I did was right.

CAROLL: The children in his Bronx neighborhood think so where he's become a local celeb. Policastro was so grateful he rewarded Sulpico with $500, set up a fund to help Sulpico get out of his cab and back to nursing school, his dream.

POLICASTRO: It makes you feel good about human kind and that's how it is life changing.

SULPICO: I feel very, very good. I mean it cannot be bought by money.

POLICASTRO: It seems nice guys can finish first after all. Jason Carol, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Still much more ahead on CNN Saturday. In a few moments, "In the Money" at 2:00 Eastern CNN live Saturday. Live in Boston with tight security as the city prepares to host the Democratic National Convention.

And at 3:00, it's Next@cnn, looking at the impact Internet bloggers will have on the political convention. But first, Jack Cafferty with a preview of "In the Money."

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired July 24, 2004 - 12:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: It is 12:00 p.m. in Boston, 11:00 a.m. in Crawford, Texas. Welcome to CNN LIVE SATURDAY, I'm Fredricka Whitfield at CNN's global headquarters. Ahead this hour, live from Boston as the city prepares to host the DNC, amid security concerns and new controversy involving "al-Jazeera's" convention coverage.
Also, the potential bounce from the convention for the Kerry- Edwards ticket. What they need to do to connect with voter, particularly the undecided.

And later...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Watching somebody who is losing the capacity to think and to reason and to relate is excruciatingly painful and difficult.

(END VIDEO CLIP)

WHITFIELD: The long good-bye of Alzheimer's. In depth on dealing with the struggles of caring for someone with Alzheimer's as new treatment options become available. But first, a look at the stories now in the news.

Reports of a new hostage taken in Baghdad this morning. Gunmen abducted the leader of a government-owned construction company. He's identified as Rod Annan of the al-Mansour Contracting Company. The ministry says he was captured while driving to work.

Charges Jenkins, who deserted his post in the U.S. Army nearly 40 years ago in South Korea, is being urged to make a plea bargain. That's according to Japanese officials in Tokyo where he traveled for medical treatment. The U.S. Military could pursue prosecution for desertion years ago. Meantime doctors in Japan are giving him a clean bill of health.

The Energy Department is halting classified operations at its Los Alamos lab in New Mexico. Missing computer disks have led to a security crisis. The lab involved does secret work on nuclear weapons research. Keeping you informed, CNN, the most trusted name in news.

(BEGIN VIDEOTAPE)

ANNOUNCER: America Votes, 2004. This is CNN's live coverage of the Democratic National Convention.

(END VIDEOTAPE)

WHITFIELD: We begin with the democratic kickoff. John Kerry and John Edwards are crisscrossing the country en route to Kerry's planned dramatic entrance to the convention hall on Thursday, where he is said to accept the nomination. Kerry says he plans to present a positive view of America in the run-up to the convention.

And now to the Fleet Center fortress in central Boston. A huge section of the city is going under a virtual lockdown two days before the democrats convene. The first presidential nominating convention since the 9/11 attacks. CNN's Bob Franken has the latest now -- Bob.

BOB FRANKEN, CNN CORRESPONDENT: And I'm at a subway stop called they call the "T," here, and what you're going to see in back of me, what you to see in back of me is will become more and more rare, and that is the presence of Bostonians in Boston. They're being asked to stay home because of what you describe as the lockdown. Streets are going to be closed. The main artery I-93 in and out of the city, that's going to be shut down in the hours around, during, and after the convention, each of its days. There is a massive security presence, here. It goes from the sky, where jets will be flying; to below the ground where people will have random checks of their bags on the subways. They're leaving little to chance.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): The fondest hope for democrats is that their message from inside the Fleet Center is not overwhelmed by what happens outside and there is massive security to make sure that the big story is the political one. On occasion, it gets real strict.

Thousands of police, local, state and federal, visible and invisible are turning Boston into fortress Boston. Much of Boston will simply be shut down. The major highway that has become the city's in and out artery will be closed to traffic around and during convention hours because it passes by the Fleet Center. In fact, workers are being asked to stay home for the duration, and a lot of business people are not happy about that at all. The various protest groups are infuriated over what they call their "holding pen," a fenced in area across the street from the Fleet Center.

The subway station at the site will be closed. Fences are going up around critical buildings and officials are working feverishly to identify threats before they become attacks. One of the latest, says the FBI, is unconfirmed intelligence that someone may be planning to attack a large camp of media trailers with incendiary devices.

(END VIDEOTAPE)

FRANKEN: Simple fact of the matter is that it's going to be a real hard time getting from here to there, but democrats and security officials are hoping that whatever hard feelings there are outweighed by the good feelings democrats have from their convention -- Fredricka. WHITFIELD: Bob Franken in Boston, thanks very much.

John Kerry and John Edwards are traversing the nation before ending up in Boston. Right now the Edwards campaign is in Milwaukee, Wisconsin. CNN's Elaine Quijano has the latest from there.

Hello to you Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hi there, Fredricka. Senator John Edwards is back in familiar territory, Wisconsin, a key battleground state in which Senator Edwards spent a lot of time during the run-up to the primary and in which -- a state in which he actually had a very strong finish behind John Kerry. Well now he is reaching out to voters once again in this state on behalf of John Kerry.

Last night Senator Edwards, after a push with John Kerry out in Denver, Colorado, he raised some $250,000 here in Milwaukee at a fund- raiser, and today he will be speaking at a rally at Martin Luther King, Jr. Park, here in Milwaukee, part of the continuing roll into the Democratic National Convention.

Now, here in Wisconsin, we're told that Senator Edwards will focus on several issues including jobs and healthcare, part of the Kerry-Edwards plans including the creation of 10 million new jobs over the next 10 years and in doing so, aides say, they would cut the deficit in half and grow the economy. Now, healthcare, another focus for Senator Edwards today, we're told the democrats looking to reduce the cost of health care for small businesses. Now, Senator Edwards running mate, John Kerry also campaigning this weekend in Sioux City, Iowa, an appearance scheduled there before moving on to Columbus, Ohio. All of this again, Fredricka, part of that renewed push to reintroduce John Kerry to the American people ahead of the Democratic National Convention -- Fredricka.

WHITFIELD: Elaine Quijano, thanks very much from Milwaukee.

On now to Salt Lake City where family members, specifically the mother of Lori Hacking, the missing jogger, is speaking right now -- this is Thelma Soares.

THELMA SOARES, LORI HACKING'S MOTHER: In the last few days, I think first day they told me there were 20 pages of leads. I don't know how many have come in the ensuing days. Those leads, of course, have been given to law enforcement to pursue and one of these leads will -- one of these leads will help us find Lori, wherever she is. Thank you so much for your help.

HAROLD SOARES, LORI HACKING'S FATHER: Before I make a short statement, I would like to thank you, all the people in this beautiful state of Utah, mainly the people here in Salt Lake City, for the love and kindness that you have shown to me and to my family. I would like to -- from the bottom of my heart to thank every single one of you who are volunteering to the police department of Salt Lake City, the sheriff's department of Salt Lake City, to the news media who has been helping us by showing the pictures of Lori out there and from the -- I remember you from as long as I live, I'll remember you, in my prayers, wishing for the best. And as you volunteers are searching for my daughter, I pray that you don't get hurt and that you have the blessings of our heavenly father to go in the right track and find her and bring her home.

We have still not found Lori and we need your help. And I beg you to come out and help us. No we can't -- and bring your families with you, you know, as like you're going hiking or what, but come out and help us. We need you. We need to find her. She's out there and I know everything is OK with her. And I need you guys to find -- help us bring her back to us. And I'm so thankful for these help.

I saw mark yesterday. We hug, we said we love each other, and that is the next kind is kind of a private and I would appreciate that maintaining as a private. Thank you so much.

UNIDENTIFIED MALE: So those that would like to ask any questions, we'd be more than happy to entertain those if you'd like.

WHITFIELD: All right, you've been listening to the family members in what is obviously a very difficult time as the search continues for Lori Hacking. She was last seen on Monday, apparently leaving the house to go jogging. None of the family members have seen or heard from her since. The husband, Mark Hacking, continues to get psychiatric treatment in a hospital, and you heard from the family members right there, the parents of Lori Hacking who talked about them being able to most recently talk to Mark, but those words are private, the words exchanged between them, however they did hug and they did express their love for one another. But family holds out hope that something will arise about the whereabouts of Lori Hacking.

We're going take a short break right now.

(COMMERCIAL BREAK)

WHITFIELD: In the wake of the 9/11 Commission's final report, a sense of urgency in Washington. In the middle of their scheduled recess, House and Senate committees will return to the Capitol in August for an unusual round of hearings. They'll focus on two of the commission's key recommendations, the creation of a National Counterterrorism Center and a new cabinet level intelligence director. Lawmakers recess is now through Labor Day.

Well, just hours after the 9/11 Commission released its final report, President Bush put the wheels in motion for a national task force to review the recommendations. That issue, is the focus of Mr. Bush's weekly radio address, and CNN White House correspondent Suzanne Malveaux joins us now from the president's ranch in Crawford, Texas -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well Fred, while the democrats take center stage this week, President Bush is largely going to be out of the spotlight at his Crawford ranch. But, White House officials making it clear he is dealing with the 9/11 Commission's recommendations, that he has a copy of that report, of course, that he has been pouring through. The president also initiating a special task force to consider those recommendations. The president saying that he needs that task force to get back to him promptly. That task force, of course, is led by his chief of staff Andy Card as well as their members of a Homeland Security team and National Security team and other high-level officials. We are also told that National Security Adviser Condoleezza Rice is going to be at the Crawford ranch on Monday, she'll be joining the president. We're told that they're going to continue to pour over those recommendations. But the president today, making it very clear at his radio address that he believes his administration already is addressing some of those issues that the commission is seeking.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have already put into action many of the steps now recommended by the commission and we will carefully examine all the commission's ideas on how we can improve our ongoing efforts to protect America and to prevent another attack.

(END VIDEO CLIP)

MALVEAUX: Now as the president's democratic opponent, John Kerry, gears up to formally accept his party's nomination, he too and the democrat response today, pitching forth that he's the stronger candidate when it comes to healthcare and education and other domestic issues, but also as well, framing himself as someone who is strong on national security.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We value a strong military and strong alliances so that America never has to go to war because it wants to, but only because we have to. These aren't democratic values and they're not republican values, they're American values.

(END VIDEO CLIP)

MALVEAUX: Now of course the priorities here are two things for the Congress, as well as the administration. First, to look at the assemblence of a national counterterrorism task force and then secondly to look at that proposal to create a national director of intelligence. That, Fred, still a point of controversy, the head of the Homeland Security Department, as well as the CIA acting director, both say they do not believe that is necessary. That is something that the White House is carefully considering. But the big question here, Fred, of course is just how quickly this administration, this Congress can respond. There are signs that they're going to be working on this as quickly as possible, but just in case the chairman at that 9/11 Commission, Governor Kane, saying that they are going to have an all-out lobbying effort in the fall to hold them to the fire -- their feet to the fire to make sure they get this done as soon as possible -- Fred.

WHITFIELD: And Suzanne, outside of those recommendations, there is some real pressure on the Bush White House to appoint a permanent CIA director. Apparently a letter was sent by a democratic senator, John Rockefeller.

MALVEAUX: Well, absolutely. There is pressure from both sides, republicans and democrats, who say look, an acting CIA director just is not going to be satisfactory here when you're talking about a nation in these kind of alerts that really needs to be better prepared in a terrorist attack. The administration has heard that, they've got a short list of candidates and also it is expected that they are going to be releasing some sort of information on that fairly soon, but it is likely it is going to happen after the Democratic National Convention.

WHITFIELD: All right, Suzanne Malveaux from Crawford, Texas, thanks very much.

Well, President Bush says all the recommendations in the new 9/11 report are on the table and under consideration, as we just heard. With more on reaction to the report we go to our guest who is a UPI national security editor, Shaun Waterman, joining us from Washington.

Good to see you.

SHAUN WATERMAN, UPI NATIONAL SECURITY EDITOR: Good to be on, Fredricka.

WHITFIELD: All right, Well, I understand you believe some of the priorities that need to be made, based on some of the recommendations, include improved border and transportation security. But these are not likely to be the issues that special hearings will undertake on Capitol Hill in August.

WATERMAN: Well, these are among the recommendations that the commission says can be implemented by the executive, they don't need legislation. The biometric -- the proposal is for a seamless biometric border. Anyone entering or leaving the United States will -- including U.S. Citizens, will have to biometrically confirm their identity, their travel documents will be encoded with digital fingerprints and photographs and in a phrase that set alarm bells ringing among the civil libertarians, they also call for this biometric border to be integrated into a nationwide system of checkpoints which will control access to government buildings, critical infrastructure, and the nation's transportation system, raising...

WHITFIELD: In your reporting are you finding that these changes need to be made now as opposed to waiting until later, possibly even next year when some of the other recommendations would go into place?

WATERMAN: Well the -- I mean, that's -- that's a matter for the administration, that's what this task force is going to decide. There are obviously -- there will be prioritizing recommendations that can -- that they can move on right away. The U.S. Visit, the department of Homeland Security's entry/exit biometric entry/exit system is already on track to be complete by the end of next year. So, I mean, that one is already moving forward, but it's the -- it's the question of integrating the border with these internal controls which, I think, is likely to prove a point of some controversy. WHITFIELD: And Shaun, the report also asks for better cooperation and coordination by way of one big network between agencies and branches of the federal government. Is this a pipe dream?

WATERMAN: Well, the recommendation is really for a computer revolution in the federal government. For a network of a single computer network so that in theory, and technically, it would be possible for any federal employee to access any piece of data held anywhere in the federal government.

WHITFIELD: And you underscored that's in theory, but does anyone, based on your reporting, feel that it could be a reality?

WATERMAN: Well, I mean, it's technically entirely feasible. The question is, you know, whether -- I mean, for example, the FBI has had huge problems with its information technology. The Trilogy System planned years ago still not -- still not complete, so in practice, there'll be many a slip between the cuff and the lip, I'm sure.

WHITFIELD: Shaun Waterman a UPI homeland and national security editor, thank you for joining us from Washington.

WATERMAN: Pleasure, Fredricka.

WHITFIELD: Rallying the faithful and trying to reach the undecided as the finishing touches are being put on the Fleet Center in Boston. What type of bounce can the candidates expect from next week's convention? We'll take a closer look when we come right back.

(COMMERCIAL BREAK)

WHITFIELD: One of the most popular news channels in the Middle East is finding itself at the center of controversy in this country, Inside the convention hall in Boston. The story from CNN's Tom Foreman.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): As final preparations are made on the convention floor, missing from the fray literally is any sign of "al-Jazeera." The Arabic news service had hung its banner alongside those of other news organizations, but now the democrats have taken it down. "Al-Jazeera's" coverage of Iraq and the war on terror have been controversial in the U.S. Still, the organization says it had approval for a banner featuring its name and logo. Al-Jazeera's spokesperson says, "We were not alerted that the banner was being removed" and "This is very disappointing."

The Kerry campaign however, says several signs were removed to improve the look of the convention center. "This is not specific to 'al-Jazeera,'" a Kerry spokesperson says, "There were a number of different signs taken down. Including one for the Democratic Party according to a convention organizer."

(on camera): Still, "al-Jazeera" was the only news organization to have its sign removed. And the news group right next door still has one.

(voice-over): An "al-Jazeera" spokesperson said they understand the decision is final, but added, we just hope the republicans don't do the same thing.

Tom Foreman, CNN, Boston.

(END VIDEOTAPE)

WHITFIELD: Well, the democratic convention which opens Monday is John Kerry's moment of opportunity. Four days of free air time, he gets to introduce himself to undecided voters and persuade others he has the experience and judgment to run the country. Ron Brownstein is a CNN political analyst and columnist for the "Los Angeles Times" and joins us from Washington.

Good to see you, Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Hey, Fredricka.

WHITFIELD: All right, you say this convention is perhaps the single most important event for the challenger. Why?

BROWNSTEIN: Well you know, conventions used to be important for what happened inside the hall, they were the place where the nominee actually got selected. Now, of course, that's done by voters in the primaries and caucuses and the conventions have become important for what happens outside the hall. They are the best opportunity for the candidates, especially a challenger to tell his story, explain his agenda in a systematic and coherent way.

John Kerry has been out there campaigning for months; he spent a lot of money on television and yet in all the polls we see that many voters still have only fragmentary impressions of him. This really is the opportunity for him to make himself, as one democratic consultant said to me, a three dimensional figure for Americans. If he doesn't do it this week it hard to see when he'll have as good an opportunity again.

WHITFIELD: But, how will that image be any different people have seen him for six to seven months campaigning?

BROWNSTEIN: Yeah, we've seen him for six to seven months and the people who have been watching CNN carefully, reading the "L.A. Times" carefully, but you know, when we polled last week, national poll in the "L.A. Times," very similar in the horse race to CNN, we found 35 percent of Americans still said they don't know enough about John Kerry to decide whether he'd be a better president than George Bush. The campaign this year has been largely overshadowed by real world events, primarily Iraq. I think Kerry is still, as I said, a very fragmentary presence for many Americans. He's got to figure out a way to tell his story so voters feel, I think, more connected to him and also feel confident that he is someone that can lead the country in turbulent times.

WHITFIELD: And when we talk about telling his story, are we talking about he needs to make it clear where he stands on the issues, on certain policies, or is this really an opportunity for him to just humanize himself, really allow people to get to know him just on a ordinary human basis?

BROWNSTEIN: I think most convention planners in both parties would say it's the later that really is the task here. It's bringing himself alive in the sense of showing what matters to him and also trying to connect the two choices that you lay out by arguing that his agenda is an outgrowth of his experiences and his values. You can see the lines of argument he's developing, that his career has exemplified a lifetime of commitment to public service and that his agenda is an outgrowth of that. But ultimately, I think that they feel above all they want people to know Kerry better and to trust him on a personal level. I think that is what they're trying to achieve this week more than anything else.

WHITFIELD: So, his running mate, John Edwards, speaks on Wednesday, Clinton gets it started on Monday, and Kerry on Thursday. Does it matter who gets the most attention?

BROWNSTEIN: Well, you know, I think historically it really is the candidate's speech that matters here, because this is such a personal moment for them. The other things, the other speakers can tout him; they're going, as you know, to have a large emphasis on the veterans who served with him in Vietnam, especially on Thursday night. Others can sort of sing his praises, but in the end what he does when the spotlight is on him is going to be the determinant, I think, of success or not for this convention.

WHITFIELD: So it's a given in your view there will be a post convention boost?

BROWNSTEIN: Well inevitably, there will be some, but there's some dispute between the two campaigns about how we measure this. Historically in Gallup Polls, the CNN/Gallup Poll together, of course, the challenger can expect about a six point increase in his share of the vote, which would take Kerry from 47 percent, in your last three- way poll, to about 53 percent. The Kerry campaign says, look, it may not be that big because the country is so polarized because the race has been going on so long. But, what they're hoping for is some of the lower -- the internal measures, more favorability for Kerry, more confidence in him, those things that would stand him well when Bush comes back with an counterargument later in the campaign.

WHITFIELD: Ron Brownstein of the "L.A. Times," joining us from Washington. We'll be seeing a lot of you over the next few days. Thanks a lot, good to see you.

BROWNSTEIN: Thank you.

WHITFIELD: Well, stay with CNN, your election 2004 campaign headquarters. Coming up later today, the "Capital Gang" is live from Boston, that's at 7:00 p.m. Eastern, 4:00 Pacific.

And tomorrow night, join Wolf Blitzer and Judy Woodruff for a special preview of the Democratic National Convention, and that's at 10:00 p.m. Eastern, 7:00 Pacific.

In Iraq, there is news of more kidnappings as the fate of seven hostages hangs in the balance. Coming up, we'll go live to Baghdad for the latest.

Was it a case of nerves onboard a cross country flight or was there a real security threat? We'll tell you about the story that sparked a cool FBI probe.

And this...

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UNIDENTIFIED MALE: When I open it up, I lo and behold I saw black pearls right there, and I said "Gee."

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WHITFIELD: Right before his eyes. A New York cabbie, a backpack, and thousands of dollars in lost pearls. We'll tell you about this nice guy who finished first a bit later. This is CNN LIVE, today, Saturday.

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FREDRICKA WHITFIELD, CNN CORRESPONDENT: Hello, I'm Fredricka Whitfield at the CNN center in Atlanta. Here is what is happening now in the news. On the heels of the 9/11 Commission report, some House and Senate lawmakers will interrupt their summer recess to hold hearings on intelligence reform. The August hearings will focus on creating a director of intelligence and a national counterterrorism center.

The ranking Democrat on the Senate Intelligence Committee has asked President Bush to nominate a new CIA director as soon as possible. Senator John Rockefeller says acting CIA Director John McLaughlin is capable, but cannot be expected to lead the agency through a fundamental realignment.

Kobe Bryant's lawyers will be allowed to present evidence about his accuser's sexual activity in the three days before her rape examination. The judge's ruling is significant victory for the defense. It claims the woman had sex with at least two other men after her encounter with Bryant.

Barring catastrophe, Lance Armstrong will ride into Paris tomorrow winning his six consecutive Tour de France. He came in first today, a cyclist pedaled a 34 mile course. Armstrong as overall leader set off last today in the individual time trials five hours behind the first racer. Keeping you informed, CNN, the most trusted name in news.

Insurgents are using hostages as pawns in their strategy to cause havoc in Iraq. An Iraqi construction chief was kidnapped today and officials are trying to negotiate the release of an Egyptian diplomat and seven other captives. CNN's Matthew Chance is live from Baghdad with the very latest on that. Matthew.

MATTHEW CHANCE, CNN CORRESPONDENT: Fredricka, thank you. And the hostage crisis here in Iraq does indeed seem to be spiraling with Iraq's interim Prime Minister Ayad Allawi urging Egypt not to bow to the demands of the kidnappers, kidnappers who seized one senior Egyptian diplomat here in Baghdad on Friday after he was coming out of a mosque. He's been named as Mohamed Mamdouh Qutb, the third highest ranking diplomat in the diplomatic mission of Egypt here in Baghdad. The militant group that took him says they did so in response to Egypt's offer of security assistance to the new Iraqi interim government. Speaking in Damascus, the Syrian capital where Mr. Allawi is meeting President Assad of Syria, The Iraqi interim prime minister urged Egypt to stand its ground.

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AYAD ALLAWI, IRAQI INTERIM PRIME MINISTER: The only way for -- to deal with terrorists is to bring them to justice And to close ranks and this is where we hope that Egypt and the Egyptian government would act accordingly. We know this is very sad. We hope that the hostage will be released unharmed. The Iraqi government will do its best to secure this, but we are not going to give up.

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CHANCE: Of course, there are other hostages being held in Iraq as well, notably the seven truck drivers, three from India, three from Kenya and one other from Egypt, being held by an apparently separate militant group. Intensive negotiations under way by diplomats from those countries in order to try and secure the release of those seven. Also, as you mentioned, there has been another hostage taken. This time the chief of a state-owned construction company here in Iraq. He was abducted by men, armed militants apparently on the streets of the Iraqi capital, Baghdad. As I say (ph), these various militant groups step up their kidnapping activities across the country. Fredricka.

WHITFIELD: Matthew Chance in Baghdad, thanks for that update.

A check now of other news around the world. A deadly explosion targets a bus carrying teachers and school workers in Pakistan. One person was killed and seven others hurt by the remote controlled bomb, another person in a separate car was also wounded.

In the Middle East, an armed standoff by Palestinian militants and security services is over. They briefly seized the governor's office in southern Gaza today. Palestinian sources say they left after leader Yasser Arafat confirmed none of the security forces would lose their jobs.

And in Spain, police reportedly find a car used by bombers in the March 11 attack in Madrid. The "El Mundo" newspaper reports the car was used to transport explosives. However, police may have lost valuable evidence from that vehicle.

The war on terror has forever changed air travel. All passengers are routinely checked unlike before. But where is the line between suspicion and paranoia? A group of Arab men recently raised a lot of concerns on a flight from Detroit to Los Angeles but they apparently are nothing more than a band of musicians. The story from CNN's Miguel Marquez.

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MIGUEL MARQUEZ, CNN CORRESPONDENT: There is no question, something happened on Los Angeles bound flight 327.

KEVEN JACOBSEN: was uncomfortable when we started boarding and when I saw how many Middle Eastern men there were.

MARQUEZ: Keven Jacobson and his wife Annie were on the Northwest flight as was a team of Federal marshals who back up the Jacobson story.

DAVE ADAMS, FEDERAL AIR MARSHAL SERVICE: They were acting suspicious. They were going in and out of the lavatories. They were standing up. They were going on the overhead bins. They were talking. They're congregating in the aisles.

MARQUEZ: So concerned Keven Jacobsen during the flight told attendants. They told him they too were watching the men. The cabin was aware and that marshals were on board. Then on final approach with downtown Los Angeles in sight, came the most frightening moment.

ANNIE JACOBSEN, WITNESS: Suddenly seven of these men are now standing. Four go to the forward bathroom, three go to the back, and very slowly, very consecutively they use the lavatory.

MARQUEZ: Annie Jacobsen, a financial writer, gave her firsthand account to a Web site. The reaction was an Internet phenomenon.

ANNIE JACOBSEN: We had something like 2 million page views on the second or third day.

MARQUEZ: The Federal air marshal service says the men never did anything criminal. They were questioned after the flight and their backgrounds checked against every available database. Its conclusion, the men were a 14 member Syrian band playing two gigs at a casino near Los Angeles.

ADAMS: The supervisor then went out to the casino, verified again that they were booked there, made sure they were playing at the casino.

MARQUEZ: But Jacobsen says terrorists could simply learn to play instruments and sees a bigger story.

ANNIE JACOBSEN: I would definitely be inclined to think it was a dry run, some kind of intelligence gathering.

MARQUEZ (on-camera): Federal officials say everything about the Syrian story checked out. And they have no reason to believe they were anything other than musicians acting strangely. Miguel Marquez, CNN, Los Angeles. (END VIDEOTAPE)

WHITFIELD: Facing the ravages of Alzheimer's.

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WENDY PANKEN, SUPPORT GROUP LEADER: Watching somebody who is losing the capacity to think and to reason and to relate is excruciatingly painful and difficult because it is what -- it is losing the person as the person is alive.

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WHITFIELD: And we'll take a closer look at the heart breaking decisions two families have had to face in saying their long good-byes to their loved ones.

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WHITFIELD: The recent death of President Ronald Reagan from Alzheimer's disease has drawn attention to the devastating ailment that robbed the president of his memories. For the first time since his funeral last month, his wife Nancy appeared in public yesterday. She greeted the new aircraft carrier USS Ronald Reagan as it arrived at its home port in San Diego. The former first lady has at times described how Alzheimer's claimed the former president's life long before he drew his last breath. That same story is being lived by millions of families across the United States now. CNN's Aaron Brown looks at two of them who had to decide when to let go.

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AARON BROWN, CNN CORRESPONDENT (voice-over): This is Michael Beder in 1995, a successful bond trader from New York City. This is Michael Beder now.

NICHOLE BEDER, MICHAEL BEDER'S DAUGHTER: For the most part he just lies or sits without really responding to stimulation.

BROWN: This was Heidi Kuykendall in 1993, a mother with a wide circle of friends in Hickory, North Carolina. This is Heidi Kuykendall now.

RANDY BRYANT, HEIDI KUYKENDALL'S SON: It was unbelievable how you could see just a real fast decline in her mental thinking. It was quite a shock.

BROWN: Both Beder and Kuykendall have had their minds stolen by Alzheimer's. Both had been in slow decline, dying for years and for both families, that has been painful choices about medical treatment and prolonging life.

BRYANT: That's the hardest decision I've ever made. And anyone who ever faces that decision, it is -- to decide to let your mother die when she -- you think she may improve is a terrible decision. BROWN: A year and a half ago Randy Bryant had to decide whether to keep his 89-year-old mother alive with a feeding tube. Randy Bryant said yes.

BRYANT: As long as someone tells you they love you and honey, and call you by your name, hey, could you kill them? I don't think so.

BROWN: Nicole Beder made a very different decision. Her father's living will helped her choose hospice care where he is kept comfortable but receives no antibiotics, no life prolonging medical treatment.

BEDER: I have a pretty good idea of what he would want. So while it can be emotionally difficult to follow through on some of his decisions, I'm confident that they are his. I guess, you know, as less and less things can make it through to him and can cause him to be happy, you know, there doesn't seem to be much point in being alive. You awake?

BROWN: At a relatively young age of 61, her father is still in good health physically, leaving his family with the burden of caring for him indefinitely.

MARTA CURBELO, MICHAEL BEDER'S EX-WIFE: It is very hard for me to see him at times in this place and to know or to think that my daughter is -- our daughter is in pain seeing her father so sick and so disabled when he was such a vibrant person.

BROWN: Nicole Beder attends an Alzheimer's care givers support group to cope with the gradual loss of a father who does not comprehend that she is expecting his granddaughter come October.

WENDY PANKEN, SUPPORT GROUP LEADER: Watching somebody who is losing the capacity to think and to reason and to relate is excruciatingly painful and difficult. Because it is what -- it is losing the person as the person is alive.

BRYANT: If you can imagine a train leaving, you have a loved one get in on the train and they're leaving the station and instead of that train traveling at 50 miles an hour or that train traveling and just rolling and rolling and rolling on the real slow pace and they can never seem to get out of sight as they wave to you.

BROWN: As you can see, making the decision between life and death is far from black and white.

BEDER: There are no wrong decisions. Every decision you make because you care about the person is the right decision. You just have to know if you're doing this out of love for the person, then you're doing the right thing.

BROWN: Aaron Brown, CNN, New York.

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WHITFIELD: And there are an estimated 4.5 million people with Alzheimer's in America and many new treatments for Alzheimer's are being tried. CNN's Holly Firfer looks at the advances in Alzheimer's treatment tomorrow on "House Call." That airs Sunday morning at 8:30 a.m. And we'll be right back.

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WHITFIELD: Well, listen up travelers with champagne tastes. We know that only the finest will do. "Travel and Leisure" magazine has surveyed its most sophisticated readers to come up with a list of the world's best destinations and accommodations. Hillary Geronemus is an assistant editor for "Travel and Leisure" magazine. She joins us from Time Warner center in New York. Good to see you.

HILLARY GERONEMUS, "TRAVEL AND LEISURE" MAGAZINE: Thanks for having me.

WHITFIELD: All right. Let's begin at the top with the best ranked destination resort overall, it being in South Africa. It is a game reserve park, right?

GERONEMUS: It is. It is (UNINTELLIGIBLE) game reserve and what is amazing is five of the top 10 hotels in the world are in South Africa and this one is the winner on its 35,000 acres on the edge of Cougar National Park where animals migrate with less restrictions. You're guaranteed to see the top five, the big five. It also is just purely luxury. It mixes colonial, African colonial luxury with contemporary designs. It is absolutely beautiful. They just added a spa, aptly named the bush spa, where you can pamper yourself while looking out into the wilderness. It is great.

WHITFIELD: Not your typical safari, not at all roughing it. All right. , the best hotel in the continental U.S. and Canada, you find it in Chicago.

GERONEMUS: Chicago, it's the Peninsula Chicago and this hotel is just a couple of years old. But it is a great hotel. It lives up to the Peninsula brand. It is classy. It's opulent. It is right on the magnificent mile. There is the rooms are large. They're known for their large rooms. A small starts at about 530 square feet, which is pretty large if you live in a New York City apartment like myself. It's also got a great spa, 14,000 square foot spa on the top of the building with floor to ceiling windows that you overlook the city of Chicago and Lake Michigan. It's beautiful.

WHITFIELD: So it sounds like if you've got a spa, then at least that puts you somewhere in the top rankings.

GERONEMUS: Exactly. Everyone wants a spa.

WHITFIELD: Best city in the world overall, a place of the last Olympic games.

GERONEMUS: It is. It's the umpteenth time, it's Sydney. Our readers love Sydney and it is not hard to see why.

WHITFIELD: Why? GERONEMUS: It is a clean city. The people are friendly. The food -- the Asian influenced food is phenomenal and it is also affordable which really goes a long way. I think last I checked the American dollar was equal to a 1.4 Aussie dollar so it goes a long way when you're over there. And there is also great new things happening, a great new restaurant called the Iceberg. It's right on Bondi Beach. It's in this modern design and people are loving it.

WHITFIELD And it really is a springboard for New Zealand which also gets top rankings for a lot of travelers out there too.

GERONEMUS: Exactly.

WHITFIELD: All right, best city in the U.S. and why a I surprised, but New York. I would have thought maybe -- I would have thought something a little bit more rustic.

GERONEMUS: No. Our readers love New York. And it is not hard to see why again. It is a city that never sleeps. It's always reinventing itself. So when tourists come, they can see something new every time. Just take the building we're in right now, the Time Warner center. It's the biggest news. It's home to CNN. It's home to the new Mandarin Oriental and also great restaurants by Thomas Keller and John George.

WHITIFIELD: OK, I guess when I was talking rustic, I really mean like natural beauty or something like that. All right, best cruise lines, Crystal Cruises. Why does this stand out among the others?

GERONEMUS: Well, this is incredible because Crystal Cruises has won nine years in a row and the survey has only been going for nine years. So (UNINTELLIGIBLE) say our readers love Crystal Cruises. It is a beautiful line. It has three ships, the Serenity, the Symphony and the Harmony. And it is just beautiful. It knows how to treat their guests. You feel like you're on a small ship even though it is a large ship. You got that white glove treatment. The newest ship, the Serenity, which launched last year, has a restaurant by Nobu (ph). It has the Creative Learning Institute which brings experts on board and they sail all over the world.

WHITFIELD: Hillary Geronemus of "Travel and Leisure" magazine, thanks so much for joining us from New York. And just to round it all out, the best overall island is Bali despite the terrorism and the threats.

GERONEMUS: Bali is the best.

WHITFIELD: Hillary, thanks very much. Appreciate it.

GERONEMUS: Thank you for having me.

WHITFIELD: Well, in the market for a new job? Perhaps find out how to make the move without digging yourself into a financial hole. It happens, you know, "Dollar Signs" takes your calls and your e-mails today at 4:30 Eastern time. So send us an e-mail to dollarsigns@cnn.com or you can call us but not until 4:30 Eastern time. That number is 1-800-807-2620.

Lost? Well tens of thousands of dollars in rare black pearls were. Coming up, the cabbie who found the pearls and his reward that changed his life forever.

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WHITFIELD: Well, if you think your cabbie's job is to take you for a ride, well, think again. Our Jason Caroll explains.

JASON CAROLL, CNN CORRESPONDENT (voice-over): It was a night on the town with friends, Lawrence Policastro had dinner and drinks, then hailed a cab and headed out for more.

LAWRENCE POLICASTRO, CAB PASSENGER: We got out and we tipped the cabbie and we went into the Mercury Lounge and ordered some drinks and all of a sudden it just -- it was like, oh my God, where is -- where is my backpack?

CAROLL: This is what was inside, black pearls, $76,000 worth. Policastro picked them up earlier that night as part of a business venture.

POLICASTRO: I was pretty sure that it was left in the cab and gone forever.

NESTOR SULPICO, CAB DRIVER: When I opened it up, I lo and behold I saw black pearls right there.

CAROLL: Nester Sulpico was the cabbie who picked up Policastroa that night.

SULPICO: It was a treasure trove right there.

CAROLL: Buried in the treasure, the owner's cell phone. Sulpico used it to find the rightful owner.

SULPICO: I called the phone right away.

CAROLL: Sulpico says he was never tempted to keep the jewels even though he is struggling to make money to send home to his daughter in his native Philippines.

SULPICO: I believe that what I did, that I did was right.

CAROLL: The children in his Bronx neighborhood think so where he's become a local celeb. Policastro was so grateful he rewarded Sulpico with $500, set up a fund to help Sulpico get out of his cab and back to nursing school, his dream.

POLICASTRO: It makes you feel good about human kind and that's how it is life changing.

SULPICO: I feel very, very good. I mean it cannot be bought by money.

POLICASTRO: It seems nice guys can finish first after all. Jason Carol, CNN, New York.

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WHITFIELD: Still much more ahead on CNN Saturday. In a few moments, "In the Money" at 2:00 Eastern CNN live Saturday. Live in Boston with tight security as the city prepares to host the Democratic National Convention.

And at 3:00, it's Next@cnn, looking at the impact Internet bloggers will have on the political convention. But first, Jack Cafferty with a preview of "In the Money."

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