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CNN Live Saturday

Navy Investigator Upholds Kerry's Medals; Polls Fluctuate Wildly, Presidential Race Still Tied

Aired September 18, 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.


COLLINS SPENCER, CNN ANCHOR: It's 2:00 p.m. on the East coast, 11:00 a.m. in the west. I'm Collins Spencer at CNN's global headquarters in Atlanta.
Ahead this hour.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Just took my breath away, broke my heart. We have friends up here.

(END VIDEO CLIP)

SPENCER: A North Carolina community comes to grips with Ivan's deadly impact. We'll have a live report from North Carolina town where dozens were wiped out by a wall of water.

More documents surface about President Bush's time in the national guard. Will it finally put an end to question about his service or is it just more fuel for a political fire.

Plus how some in Congress want to punish U.S. companies who that head overseas to avoid the tax man. That and more in the moment.

first stories now in the news.

(NEWSBREAK)

SPENCER: Ivan continues to cause problems as it moves into the northeast. Heavy rain is falling in Pennsylvania and New York. Also tornadoes and mudslides hit parts of West Virginia today. The storms march up from the Gulf Coast was deadly. Florida and North Carolina were hardest hit. At least eight people killed in both states. In all, the death toll from Ivan stands at 25 at five Gulf coast states.

More than a million utility companies lost electricity. Power is slowly being restored. Ivan did billions of dollars in damage. Insurance could face four billion dollars in claims.

Rain from Ivan is still falling and Atlantic Ocean continues to be a cauldron, brewing more storms.

And Jacqui Jeras is in the weather center to look at this weekend's weather. And Jacqui, you can't wave the all clear sign yet, can you? JACQUI JERAS, CNN METEOROLOGIST: Not just yet, but we are a lot more relaxed about what's out there right now, Collins. So that's some good news. What's left of Ivan still causing a few problems, mostly problems now. The rainfall, maybe a one to three inches, at best, we think four today. Some of the heaviest showers are now across the northern parts of New England, across Maine and into the Boston area here. You can see your even on the back side of the system now.

Center of circulation is push of the coast around Delaware at this time. And then Ivan finally looks like it's going to be history, so some very good news there. There's still numerous flood warnings in effect. And keep in mind some of these rivers that have flowed out of their bank, it's going to take several days for them to receded and move back within them. So, we are going to continue to see some flooding concerns as there also still some more run off going on here.

Tornadoes was a big threat yesterday. That threat now has diminished today, through more than 50 tornadoes across the eastern U.S. yesterday, from the Carolina's extending all the way up into Pennsylvania.

This is the latest on Jeanne. Jeanne is back to tropical storm, was a tropical depression yesterday, so it's fired up just a little bit as it moves towards the Bahamas right now. But it appears like Jeanne is not going to be a threat to the United States. It still (UNINTELLIGIBLE), we don't want to rule it out just yet. However our computer models have been consistent for more than 24 hours now, keeping it out to see after it skirts through the Bahamas. So some very good news there on Jeanne.

On another note, we do have another tropical in the Pacific, moving towards Baja, California. This is Javier, and that is going to be bringing in some very heavy rains. There is also a strong storm front moving in across the west and Javier will bring some flooding threats we think across the southwest throughout the weekend -- Collins.

SPENCER: All right, Jacqui. Jeanne, you are not wanted.

JERAS: I know it.

SPENCER: Well, the western edge of North Carolina was devastated by Ivan. Rain swollen rivers still pose a threat to victims of the storm. At least eight people in that part of the state were killed. Survivors have began the clean up.

Sean Callebs is in Macon County. Hi, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hi, Collins. Indeed a beautiful day here in western North Carolina, one that doesn't really tell the full story about the devastation and the real tragic situation from the remnants of Hurricane Ivan playing out in this area.

Right now there is a search in rescue team in an area about 15 minutes from where we are, in the town of Franklin. What happened was a wall of water came rushing through this area Thursday night around 11:00. This after Ivan had dumped between eight and 12 inches of rain on parts of western North Carolina. Usually Peeks Creek is something between five and six feet wide. Well, authorities say the water got 30 feet high. They could look at the water line on huge trees and homes were just ripped from foundations their foundations, roads simply washed away completely. And a number of large trees were simply splintered.

Right now, some 300 rescue personnel are combing through the splintered homes. They are looking for any possible survivors and yes, they're also looking possibly for more victims.

Now for residents of this area, some of the terrifying news is this is an area not prone to flooding. It is not in a flood plain. So residents were not told to evacuate.

(BEGIN VIDEO CLIP)

WARREN CABE, MACON CO. EMS DIRECTOR: This is probably the worst natural disaster in Macon County's history. I have no way of telling you any type of a dollar figure what this is going to inflict upon us at this time. But our agencies are working with all the other volunteer agencies involved throughout the county and state of North Carolina and the federal agencies that are involved to make sure that we recover from this, respond to the incidents we have, keep the people safe in Macon County and bring an end to this incident and recover from it as quickly and safely as possible.

(END VIDEO CLIP)

CALLEBS: Now, the Peeks Creek area is about an hour 50 minute drive west of Asheville, North Carolina. And think about it, the eye of the Hurricane Ivan, were passed along the gulf coast a full 530 miles from the damage it caused up here. There are people still unaccounted for, but authorities are not saying exactly how many nor do they have any specific answer.

Now, Among the rescue workers out there looking are members of the national guard, members of the Macon and Graham County EMS, Urban Rescue Team from Charlotte, North Carolina, as well as a swift water rescue team from Raleigh. There are also members of the highway patrol and FEMA out there as well. Now Macon County especially hard hit by the remnants of Ivan, but emergency officials here say they can't even begin looking at other areas of the county until they will have thoroughly exhausted all search and rescue operations in this little area of Peeks Creek. There are still 200,000 people without electricity in this area.

A number of roads simply washed out, destroyed. Parts of Interstate 40, parts of Interstate 26 were closed for a while. We're told they will be opening if they're not open already. Simply a tremendous devastation in this area. They're glad that Ivan has simply moved out. As you hear, the director of emergency services say this is probably the worst natural disaster anyone knows of in Macon County, North Carolina -- Collins. SPENCER: It looks like it's going to be a long recovery process.

Thanks Sean. Sean Callebs in Macon County, North Carolina.

We'll have more on the impact of Ivan, Chris Lawrence joins us live from the Gulf Coast with a live report at the bottom of the hour.

A powerful car bomb in northern Iraq and more hostages turn up on videotape.

Senior international correspondent Walter Rogers, reports from Baghdad.

(BEGIN VIDEOTAPE)

WALTER RODGERS, SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The kidnapers threatened to kill these two Americans and one British engineer by Monday unless the Americans release all female Iraqi prisoners now in custody here. All three men were blindfolded, a gun was placed at one's head.

UNIDENTIFIED FEMALE: (SPEAKING IN ARABIC)

RODGERS: The Arab television network, Al Jazeera, was the first to broadcast the demands of Tawaden (ph) Jihad believed affiliated with the alleged terrorist mastermind Abu Musab Al-Zarqawi. This is the house from which from which the two Americans and one British subject were kidnapped Thursday. Their Iraqi guard did not show up that night clearing the way for the kidnapping.

Also, this weekend, a string of car and roadside bombs. In the northern city of Kirkuk, the Iraq National Guard headquarters was the target of a suicide car bomber. The car at high speed bore down on the guards shooting at the driver, but not before he detonated a powerful explosion killing 19 Iraqis there and sending more than 60 others to hospitals.

Security institutions like the Iraqi police and national guard have been the principal targets of the insurgents this past week. A roadside bomb was detonated in the Baghdad's Karata (ph) neighborhood, killing one person. The apparent target, cars thought to belong to westerners still in Iraq.

A convoy of U.S. Soldiers on the road to Baghdad's airport was the target of a car bomb. Three soldiers were reported injured in that.

(on camera): Earlier Saturday, that same airport road was closed because overnight it was found to have been laced with roadside bombs. Despite all that, however, Iraqi Airways has relaunched its first commercial flight in 14 years to Damascus. Walter Rodgers, CNN -- Baghdad.

(END VIDEOTAPE)

SPENCER: The United Nations is threatening to punish sudan's oil industry if the killing in the darfur region doesn't stop. CNN senior U.N. correspondent, Richard roth is waiting in New York for the security council vote. Hi, Richard.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Hi, Collins. Secretary of state Colin Powell says what's happening in Darfur is genocide. The U.N. Security Council is not ready to agree to that, but in a couple hours it might approve a resolution which would establish a commission of inquiry sending investigators to find out just exactly what is going on. The holdout so far causing a delay in approval of this resolution is China.

(BEGIN VIDEO CLIP)

WANG GUANGYA, CHINESE AMBASSADOR TO U.N.: What we feel is that our concerns with this draft, which will not encourage all the Sudanese parties to engage in serious peace talks. So, this draft will be a recipe for failure for the peace talks. I think what we want to see is peace in Sudan because as far as there are peace, many other problems of other nature will be solved. This is my hope.

(END VIDEO CLIP)

ROTH: China and other nations will start consulting here in about an hour. A million people have been homeless in Sudan, 30,000 to 50,000 estimated killed. The security council is going to threaten sanctions but the language has been been slightly watered down. But still should approval indeed occur, the Sudanese government may face the threat of sanctions against leaders and against the oil industry. China, by the way, a major buyer of oil from Sudan -- Collins.

SPENCER: Thanks, Richard. Richard Roth in New York.

Ralph Nader wins a key victory in Florida. We'll explain why the Reform Party candidate will appear on the ballot this November. Plus, the Kerry campaign gets good news from a Navy investigator about the Democratic candidate's service in Vietnam.

And still ahead, the Americans are looking for a comeback on a day two of the Ryder Cup. Will the benching of one of the team's biggest stars make the difference? We'll have a live report from Michigan in about 40 minutes.

(COMMERCIAL BREAK)

SPENCER: Ralph Nader is joining John Kerry and George Bush on the ballot in Florida. That's the decision of the Florida Supreme Court by a 8-1 vote. Nader is to be listed as a Reform Party candidate. Critics say he cost Al Gore a victory in Florida and the presidency.

Some questions surrounding Kerry's Vietnam service have been answered. The Navy's chief investigator has determined Kerry's military service medals were properly approved and awarded. In a memo, the Navy inspector general said there is no need for additional action. The group Judicial Watch had requested the review. It claimed Kerry's medals were awarded based on false statements and asked the Navy to consider revoking them.

Well in the meantime, the Pentagon is releasing more of the president's Vietnam era military records. Democrats insist those records show favoratism to the son of then congressman George H.W. Bush. The story from CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): After a federal judge ordered a full release of all documents relating to George W. Bush's time in the National Guard, Pentagon officials say they looked beyond Bush's personnel records for anything relating to his service or his squadron. In fact, the bulk of the 79 pages of additional documents are history'ses of an Alabama National Guard unit which don't mention Bush. So they do little to answer the question of whether Bush showed up for alternate service in Alabama in 1972 or '73 after he was suspended from flying status in Texas for missing a required physical.

But included is a 1968 thank you letter written by his father, then a Congressman, in response to the commander of his son's training base who had written a complimentary letter two weeks earlier. "That a major general in the Air Force would take interest in a brand new Air Force trainee, made a big impression on me," the future first President Bush wrote about his son. "I do have the feeling he'll be a gung ho member of the U.S. Air Force."

The Democratic Nationality Committee was quick to cite the letter as evidence of preferential treatment. "These documents demonstrate yet again that George Bush was a fortunate son, who received special consideration unavailable to the average American," it said in a statement.

The White House insisted the new documents show its fulfilling the president's request to release everything regarding his military service. Among the new documents, a press release written about young Lieutenant Bush sent to his hometown, Houston newspapers which reflexes the drug culture of the time. "George Walker Bush is one member of the younger generation who doesn't get his kicks from pot or hashish or speed. Oh, he gets high all right, but not from narcotics." Noting his solo flight in an F-102 fighter jet.

(on camera): Predictably, the White House insists the documents were moore proof that will President Bush fulfilled his military obligation, while the Democratic National Committee chairperson said if the president was truly proud of his service, he wouldn't be releasing the documents on a Friday night. Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

SPENCER: Debate other the military records of both major candidates just won't go away. Joining us for a look at where the race stands as the weeks tick down to election day is Amy Walter of the Cook Political Report in Washington. And Amy, let's start with the debate over the military records. Has this affected the campaign on both sides over the last couple of months?

AMY WALTER, COOK POLITICAL REPORT: Well, I think it certainly has. And I think for the most part, this has been a much more of a benefit for President Bush than for John Kerry.

Look, the more that this race, as we go into the last six weeks is a back and forth between medals and about documents and what's true and what's not true, then the more the focus is off of issues like the economy or jobs or Iraq or the deficit. That's not good for John kerry. Those are the issues he needs to make this campaign about.

I think even when his friends think they're trying to help and they're trying to get out there and really make the case against George Bush, I don't think it's all that helpful to continue the back and forth on Vietnam. I think for most voters, they would much rather talk about issues important to them today.

SPENCER: Let's talk about Iraq, that being a campaign issue. And one of the polls says that President Bush has a 12-point lead. How do you see that in regards to Iraq?

WALTER: Well, I think that the issue of Iraq is still very, very fluid. Remember, before this convention the president had a lead, quite frankly, always had a lead on the issue of who do you see as better fighting the war on terrorism. But on the issue of Iraq, voters have gone back and forth over the last few months.

Going right into the Republican Convention this August, a majority of voters said actually they thought it was not a good idea that we had gone into Iraq. Today, that number has changed. But I still think that underlying all of this is a deep sense of anxiety. I don't think that Americans feel overwhelmingly positive or negative about Iraq. But I do think that major issues in that country, what the sort of stuff that gets on the front page of the papers here, that helps to swing this issue one way or the other.

And I think that for the president, linking Iraq as closely as he can to the broader war on terrorism helps him. For John Kerry, he's trying to links it as much as possible to the overall budget deficit and to the -- what some have called you know, getting caught up there in a quagmire.

SPENCER: Amy, let's talk about the bounce that President Bush got after the Republican Convention. Do you see that evaporating now.

WALTER: Well, I think we've seen a lot of polls over the course of this last week, and quite frankly they're telling us many different stories whether the president is up by double digits or whether it's tied. But I think fundamentally, we have a race that has always been, the dynamics have change and it's always been very tight.

Fundamentally, this is a race that is going to be decided by two, three points either way. We know that there are basically nine or ten battleground states where this race will be won or lost. So, I don't think that overall the dynamics have changed. We've simply seen that the president has gone from being tied or slightly behind before August to now being a little bit ahead, and the momentum is going his way. But I think that fundamentally we're still in a very, very close race.

SPENCER: All right. We'll see where it goes from here. Amy, thanks for joining us.

WALTER: Thank you.

SPENCER: Amy Walter of the Political Report. The Cook Political Report.

Well, voters in presidential campaigns say they rarely hear enough about the issues. Starting Monday, CNN begins a series of special reports on the issues. That's airing all week on "AMERICAN MORNING" at 7:00 eastern. Monday's issue: terrorism and keeping America safe.

Getting back on their feet in the sunshine state, the days after Ivan hit. How close are Floridians getting to their lives back to normal? We'll have a report from Pensacola.

Plus this:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We lose about $5 billion in revenue. Serious amount of money. It's staggering.

(END VIDEO CLIP)

SPENCER: U.S. companies that relocated overseas to avoid taxes may one day take a financial hit if some in Congress have their way. Find out how after the break.

(COMMERCIAL BREAK)

SPENCER: A leading senator once said, a billion here, a billion there, pretty soon you're talking about real money. That's what Congress is trying to wrestle back from some U.S. corporations who allegedly cost the U.S. Treasury billions of dollars. CNN's Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The consulting and technology firm Accenture was award a $10 billion Homeland Security Department contract this summer, the largest contract ever for that agency. Not bad for a company whose corporate offices are in this building in Bermuda. But new legislation approved by the Senate would bar companies who set up shell headquarters in tax havens from biding on future department of Homeland Security contracts. A similar bill passed the house in June.

REP. ROSA DELAURO, (D) CONNECTICUT: We lose about $5 billion in revenue, a serious amount of money, it's staggering the amount of money. And to think, then, that we would reward those companies, that we reward them with federal contracts, is equally as staggering.

SYLVESTER: This week, a House amendment by Congresswoman Rosa Delaura tried to prohibit these companies, dubbed Benedict Arnold's, from receiving government contracts from two other federal department, Treasury and Transportation. That amendment was defeated along party lines. Opponents argue shutting out companies from the bidding process drives up costs for taxpayers.

CHRISTOPHER PREBLE, CATO INSTITUTE: Because you are paying more, because you are reducing the number of eligible bidders, and you're perhaps getting less service or a less effective product, whatever the case may be, because you are somewhat arbitrarily ruling certain competitors out of the process.

SYLVESTER: Both sides are carefully watching what happens with the Homeland Security Appropriations Bill. It still has to go to a congressional conference committee. Where even though the language is identical in the House and the Senate bills, it could still be stripped.

SEN. CARL LEVIN, (D) MICHIGAN: We've seen these kind of games played before in conference, where conferees drop provisions which they should not drop when they're both in the House and the Senate bills.

SYLVESTER: And even if it is in the final version of the bill, President Bush will have the last say.

(on camera): The Homeland Security Department Appropriations Bill will likely move through Conference Committee quickly, and could be on the president's desk by the end of the month. Both the White House and the Republican congressional leadership have opposed banning corporate expatriates from receiving government contracts. Lisa Sylvest, CNN, Washington.

(END VIDEOTAPE)

SPENCER: Britain tries to salvage a Northern Ireland peace plan, but Tony Blair and his Irish counterpart end the three days of talks without a deal. Find out if there's still hope for a compromise.

It was a week of graphic evidence in the Scott Peterson murder trial. We'll find out if prosecutors made any headway with the jurors in our legal debate.

Plus, Pensacola, Florida picks up the pieces following Ivan. We'll have a live report from there next.

(COMMERCIAL BREAK)

SPENCER: Thirty five prisoners released from U.S. detention at Guantanamo Bay returned home to Pakistan today and went straight to jail for interrogation. Pakistani officials convinced the Bush administration the prisoners were not members of Al-Qaeda even though they had been captured in Afghanistan. Ivan's aftermath, the search is on for survivors after a flash flood swept through the western North Carolina Mountains. Several homes have been washed away by a wall of water, possibly 30 feet high. At least four deaths are reported in Macon County.

Let's get back to the aftermath of Ivan. Still a hurricane when it slammed into the Gulf Coast. It's a vicious wind to rip through northwest Florida. Power remains out to thousands, many roads and bridges remain impassable. Chris Lawrence has the latest from Pensacola. Hi Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well Collins, the road crews have been making progress over the past few hours, starting to clear a lot of debris out of the roadways and clear that up. Here at the marina it is going to be quite a bit longer, I mean you can take a look at just the sheer size of this concrete dock that was literally just hoisted up and dumped on the pier. I mean the waive surge was so strong, it just pushed boats right up on shore, again, as we saw with that dock, literally leaving it 10, 12 feet in the air.

A lot of the boat owners who have come by to look at their boats here say this is easily millions of dollars in damage. As we take you now from here into the heart of Pensacola, you can also see some of the damage that's gone on to homes, to businesses. We have some updates now since we last talked to you a few hours ago, 340,000 people remain without power. That sounds like a lot, but when we started the day, we were at about 400,000. So the crews all making some progress in terms of getting the lights turned back on.

Also, the emergency operation center is still advising people to stay off the roads at night. The crews are still out there. Gulf Power is out trying to restore power, which is quickly becoming the biggest problem here. Even Governor Jeb Bush during his tour of the area yesterday said not having electricity is more than an inconvenience for some people. Especially the elderly. It is a very real problem. We are having 90 degree plus days here.

People don't have a lot of food; a lot of people don't have access to clean water. And getting the power and the water back on is becoming the big priority. This is some of what President George W. Bush may see tomorrow. He's scheduled to tour this hurricane-ravaged area. And unfortunately this will be his third such tour in just about a month.

SPENCER: Chris, there was a mass exodus in that area prior to the hurricane coming in. Have many of the residents made their way back into the area?

LAWRENCE: Yes, a lot of them are starting to now get through as they move some of the debris out of the roads; they are able to get access. We spoke with one woman over the past couple days who came back, we watched her see her home for the first time. And she was devastated because it wasn't there. I mean, literally when we say the storm destroyed her home, it erased it.

There was nothing left but the foundation and a pile of wood. She couldn't find a piece of furniture, nothing. So when people come back, it's been just devastating to see what they find the at times.

SPENCER: Yes, I can only imagine. Chris Lawrence in Pensacola, Florida. Thanks Chris.

And turning to Alabama, much of that state's prime Gulf Coast was pummeled by Ivan. Alabama Governor Rob Riley along with other state and federal officials took a look at the devastation from the air and on the ground.

(BEGIN VIDEOTAPE)

GOV. BOB RILEY, ALABAMA: Everything that you see here from the taller building all the way down, all of these beach houses are going to have to be totally demolished because the foundation has been eroded. They're beginning to lean one-way or the other. So everything that you see here has got to be destroyed. You think water's not powerful? Look at that.

Yes, looks like pretty nice convertible at one time. Just wondering how long it -- how far it floated. Looks like everything here is going to be totally ruined. Alabama doesn't have no state has the resources, Florida, Alabama, Mississippi, anyone to be able to compensate for all this damage. When it comes to infrastructure like this road, like these bridges and I-10 that we're going to fly over in just a minute, no we have to have federal help. Stay and we'll let him do it.

UNIDENTIFIED MALE: This is the boat.

RILEY: This is the first time in my lifetime we've had anything like this occur. So there's no question we not only need to build back but need to build back as soon as we can.

This is the most beautiful beach in America if not in the world. We're going to build it back better, more beautiful than it's ever been. Beach is still here, still one of the most beautiful places in the world. We've got to come back and put it back together.

(END VIDEOTAPE)

SPENCER: Amazing pictures. Well talks to restore home rule in Northern Ireland ended in failure today. Here's CNN's Fionnuala Sweeney I believe castle outside of London.

FIONNUALA SWEENEY, CNN CORRESPONDENT: No break down, but no break through either. The British and Irish prime ministers have emerged from three days of talks here at Leed's castle in England without a comprehensive agreement between Northern Ireland's rival political parties. At issue had been IRA decommissioning of weapons, policing and justice in Northern Ireland and an end to paramilitary activity.

The two prime ministers saying however they believe that a deal on IRA decommissioning of weapons could be struck.

(BEGIN VIDEO CLIP) TONY BLAIR, BRISTISH PRIME MINISTER: We believe we could resolve the issues due with ending paramilitary activity and putting weapons beyond use. As a matter of urgency, all parties need to conduct consultations on the force of agreement before we can proceed. That is subject to a satisfactory outcome to these consultations, we can finally and at long last resolve the issue of arms in the politics of Northern Ireland.

BERTIE AHERN, IRISH PRIME MINISTER: I urge all parties and join with Prime Minister Blair, particularly those in positions of power and responsibility to finish the job in the interests of all of the people in northern Ireland.

(END VIDEO CLIP)

SWEENEY: However, the main sticking point appeared to be the Democratic unionist party's objection to any agreement being reached without a restructuring of how local government in Northern Ireland works. That in effect say the British and Irish prime ministers would mean a complete renegotiation of the Good Friday agreement, which put in place this current peace process. The DUOs say they wanted to see ministers in Northern Ireland held accountable to the Northern Ireland assembly, that is the Northern Ireland parliament.

And because the population in northern Ireland is predominantly unionists, that would mean the unionist having more seats in the northern Ireland assembly which the British and Irish prime ministers and indeed the other parties say would in effect would mean a return to majority rule. Jerry Adams of Sinn Fein said after the talks that it was now up to the British Prime Minister Tony Blair to handle the peace process and move it forward.

GERRY ADAMS, SINN FEIN PRESIDENT: That's the essential issue. (INAUDIBLE) Can the prime minister handle that; I think could very much for once actually bring us to historical moment.

SWEENEY: However, the Reverend Ian Paisley, leader of the Democratic unionist party said he was too old to be bluffed into any agreement without first seeing IRA decommissioning of weapons.

(BEGIN VIDEO CLIP)

IAN PAISLEY, DEMOCRATIC UNION PARTY: (INAUDIBLE) we say we will believe it when we see it. And we're going no farther than that.

(END VIDEO CLIP)

SWEENEY: These talks are set to continue at a lower ministerial level over the next few weeks. Tony Blair the British Prime Minister is saying a deal could be done this side of Christmas. Fionnuala Sweeney, CNN, Leed's Castle, England.

SPENCER: In other news Russian police managed to thwart a car bomb attack in Moscow last night. The inter facts and news agency reports a vehicle laden with explosives was stopped on a main road leading directly to the Kremlin. Yesterday, Chechen terrorist leader Sameal Basayia claimed the responsibility for several recent terror attacks including one that killed hundreds of children at a elementary school.

A top U.N. official accuses both Israel and the Palestinian authority of failing to meet their obligations under this so-called road map to peace. Prime Minister Ariel Sharon is being criticized for suggesting Israel might maintain settlers in the West Bank long after withdrawing from Gaza and the Palestinian authority is being chastised for failing to crack down on suicide attacks.

Car bombs, suicide attacks, terrorist kidnappings, the real horror of these events is seldom translated into human terms. This Sunday, CNN presents "Impact of Terror," a deep and disturbing look at a 2001 bombing through the eyes of its victims. In this excerpt, the injured and the first responders rush to deal with the immediate aftermath of a suicide bombing. A warning now, some viewers might find some of these scenes disturbing.

(BEGIN VIDEOTAPE)

MIRIAM SHUSHAN, BOMBING VICTIM: I was looking around me and like where am I, what happened to me and then like everybody's screaming it's a bomb.

CHAIM FOXMAN, EYEWITNESS: I ran inside and I saw terrible things. Bodies that were still burning and there was smoke coming out of them and I couldn't even touch them. I took tablecloths and used them to put out fires on people who were burning.

UNIDENTIFIED MALE: The phone was left hanging from my hand and I immediately dialed his number.

MICHEL AMAR, JERUSALAM FIREFIGHTER (translator): My wife screamed on the phone, we got hurt in a bombing. We got hurt in a bombing and then the call was disconnected. I didn't understand exactly whether -- whether they were alive or no longer among the living. I said to myself, Michele, stand up and run to the vehicle.

ANAT AMAR, BOMBING VICTIM (translator): It started to get really messy, yelling from every direction. The sound of ambulance sirens, police, people running.

UNIDENTIFIED MALE: Canadian volunteer Orley Pinchuk was one of the first paramedics on the scene.

ORLEY PINCHUK, CANADIAN VOLUNTEER PARAMEDIC: I open the door to the ambulance and stepped out. The first thing that I saw was many strollers, maybe four or five on their sides. No babies in them. It was my first real mass casualty incident and I thought I would be able to prepare for something like this. And there was no way.

There were overturned tables and chairs and I'm not even talking about inside the restaurant. I'm talking about in the intersection.

(END VIDEOTAPE) SPENCER: CNN presents a move past the politics and headlines to examine the impact of terror through the eyes of those who struggle with its legacy. Join us Sunday night at 8:00 Eastern, 5:00 Pacific.

(COMMERCIAL BREAK)

SPENCER: All right let's take a look at stories making news across America now. In Maine, a dome demolished. Explosives brought down main Yankee's containment dome yesterday. It is one of the final steps toward decommissioning the former nuclear power plant.

And in Michigan, a 17-year-old is in jail accused of making terror threats against his high school. Police in Clinton Township were tipped off after boy made alleged threats in an and line chat room. Police say weapons and bomb making materials were found in his home.

He was the cute child actor from the "Home Alone" movies. Now Macaulay Culkin is in trouble with the law he was arrested on drug charges during a traffic stop in Oklahoma City. Authorities say they found marijuana and controlled substances without a valid prescription. He's been released on $4,000 bond.

In today's "Legal Roundup," Scott Peterson weeps and the jury gasps at a gruesome display of autopsy photos. Also, Martha Stewart chooses to do time. With us today, two of our favorite lawyers criminal defense attorney Richard Herman in New York and in Cleveland, Ohio civil rights attorney and law professor Avery Friedman. Hello to you gentleman.

AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Nice to see you Collin.

SPENCER: Well let's start with the pathologist in the Scott Peterson case. He said that Laci's baby was not born before the body was dumped into the San Francisco Bay. What does this do to the prosecution's theory? Lets start with Richard.

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: OK, Collins, both sides really scored this week with this testimony. Obviously, I'm told it was extremely gruesome and graphic testimony. It angered many of the injuries and there's only one person sitting as defendant here and that is Peterson, that is who they convent on.

But on the other hand Geragos brought out the fact that the prosecutors own pathologist testified that the size of the remains of the infant were consistent with a full term baby. And if that was the case we know that this baby was due to be born February 10th or around that time. And we all know from December 24th on, with GPS tracking devices and detectives undercover, Scott Peterson's every move was watched. That's reasonable doubt, Collins.

SPENCER: Avery, what are your thoughts?

FRIEDMAN: There's no reasonable doubt. In fact for the first time in over four months, the prosecution finally has put their case together. The reasonable doubt issues that have been floating around, the prosecution is tightening it up that fetus was dispelled from the body in the water. Remember, Geragos opening statement that there was a kidnapping of Laci Peterson by cultists vivist (ph) sexists, all those theories are going down the drain.

Right now the prosecutor has one week to go. I think they're going to make that burden and remember we're only half way through we're still going to have to hear what the defense has to say.

SPENCER: And Avery, you bring up the issue of Geragos theory in regards to the cult being involved here. Should Geragos continue with this type of -- continue on this type of issue right there?

FRIEDMAN: Well he doesn't have a choice. Right now, what's happened over this past week is you had experts on the stand. All he could really do was bang at the credibility, trying to find inconsistencies. But the experts number one, the pathologists; number two the criminologists that dealt with the cord, which had no effect. Remember there was a recess early and finally the expert that dealt with the concrete in which Scott said, well, we used it for the driveway.

And you know what, what came out in the testimony this week was that Scott's explanation about using the concrete for the driveway, it didn't match-up.

HERMAN: That's wrong, Avery. But in addition to that Collins very important. The prosecutions own pathologist testified he could not rule out the fact that this child came to full term. That is reasonable doubt. And the jury's is going to be charged to find him guilty beyond a reasonable doubt. And Avery if you don't see reasonable doubt here, I've got to get you some eye cleaner or something.

FRIEDMAN: There is some doubt Richard, it is not reasonable doubt.

SPENCER: OK, let's move on and talk about the baseball incident that happened this past week in regards to Frank Francisco of the Texas Rangers throwing the chair into the stands hitting the fan in the nose.

FRIEDMAN: Jeez.

SPENCER: Does the D.A. in San Francisco, how do they handle this? How do they go from here?

HERMAN: It's an open and shut case on him. They're going to make a quick deal both criminally and civilly. Probably going to end up paying her about $100,000. But as Leda said earlier today on CNN, one of the crimes here was that the husband was right in front of her and he ducked down and the chair went over his head and hit his wife.

FRIEDMAN: Why is that a crime?

HERMAN: That California chivalry, I don't know what that is. FRIEDMAN: Let me tell you something, if Frankie Francisco was as accurate as a reliever as he was with the chair, in smacking Mrs. Wayno (ph) Texas wouldn't be 5.5 games out. Legally speaking, this is a big deal. There wasn't just one reliever. Three relievers and a coach. It may well be on the civil end of things that the organization itself may bear some legal responsibility here.

HERMAN: A $100,000 settlement.

FRIEDMAN: I don't know.

SPENCER: Gentleman do you think the attorney for the victim should sit down with the folks in San Francisco to see if they can work something out here?

HERMAN: It is all about money. Just like Kobe, it's all about money.

FRIEDMAN: No, maybe it's all about justice because they're responsible, the organization may be responsible. Let's get the criminal case out of the way and then let them be accountable for what happens here.

HERMAN: They don't need any money then, right Avery.

FRIEDMAN: Nobody knows.

SPENCER: Lets move on to Martha Stewart now. We're moving along here. Was it a good idea for Martha Stewart to say she wanted to go to jail immediately?

HERMAN: Well, I think that Martha Stewart really doesn't have a leg to stand on, on her appeal. And because of that, I think probably she's doing the right thing. The fact that her lawyer stood up and proclaimed they have such a great appeal is belied by the fact that here see is requesting to go in prison. Believe me if that was my client and we had a great appeal, I wouldn't let my client go into jail right now.

SPENCER: Avery what do you think?

FRIEDMAN: Well they never really had a great appeal. Richard actually got that one right. The fact is that Martha did it not because of legalities, not because of justice; she wanted to enhance business issues for her corporation. Had nothing to do with reality. She was going to jail anyhow. She was going to loose on appeal, it was the right thing to do.

SPENCER: All right, always a pleasure to talk to you all.

FRIEDMAN: Nice to see you again.

HERMAN: Nice talking with you Collins.

SPENCER: We got Richard Herman, a criminal defense attorney and Avery Friedman civil rights attorney and law professor. Thanks to both of you.

HERMAN: Take care.

FRIEDMAN: Happy to be here.

SPENCER: The Europeans set a Ryder Cup record against the Americans on the first day of competition. Can Tiger Woods and Company gets the yanks back on track today? A live report from Michigan is up next.

(COMMERCIAL BREAK)

SPENCER: Barry Bonds chasing baseball's brass ring. Joins Babe Ruth and Hank Aaron in the exclusive 700 Club. He drove a 392-footer in San Francisco last night. Afterwards, he described the home run as unbelievable, like a dream. Bonds have 42 homers so far this season.

Well, team USA recoups some of its losses from yesterday's dreadful show at the golf's Ryder Cup Tournament. CNN's sports correspondent Larry Smith who has been picking up some golf tips I'm sure has the latest from Oakland Hills Country Club in Bloomfield Township Michigan. Hey Larry.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Hey Collins, how are you? Yes, you know, it really could be kind of a tepid celebration right now for the Americans who came out strong early in the morning competition. It turns out, well, they only got two wins and then have a third match in the morning's session. The fourth match going to the European when Ryder Cup rookie Paul Casey making his debut in this competition sunk a par putt on 18 to get the victory for the Europeans and end the morning four-ball session.

Now Tiger Woods last night gave an inspirational speech to the American team urging his team to play loose and to play their game and make sure they focus and try to make those short putts they kept missing on Friday. He followed that up with a dominant victory this morning. He and Chris Riley beating Darren Clark and Ian Polster (ph) 4-3. Woods teaming up with Davis Love III versus Potty (ph) Harrington and Paul McGinley in the afternoon sessions. Phil Mickelson set out this morning after he struggled mightily Friday; he served as a vocal supporter this morning.

He and Woods by the way on Friday teaming up for two of those losses the U.S. suffered on Friday. Mickelson is with David Toms. He right now is down versus Miguel and though Mass Levet (ph) of France. In fact the Europeans now point total they lead 8-4. They only need 14 total points to retain the cup and they are off to a hot start this afternoon foursomes leading three of the four matches in the afternoon foursomes. An alternate shot from after playing here in the afternoon.

Singles matches coming up tomorrow. But today in the afternoon sessions the only U.S. Lead so far, Tiger Woods and Davis Love they are one up through one hole in their match. That's the story right now from Suburban, Detroit. Let's go back to you.

SPENCER: Hey Larry, the Europeans are looking awfully strong. Are they gaining more confidence as the matches go on?

SMITH: Well I think certainly they gained some confidence by the fact that they managed to get 1.5 points in the morning session. Because once again a couple of hours ago, the U.S. was leading in all four matches and appeared they would get their first sweep in a four ball session since 1967. The fact they came back and managed to split one match and win another certainly took a little bit of steam out of the American team here. But still a very pro-U.S. crowd. We will see if they can rally them through the afternoon session.

SPENCER: Now Larry, Mickelson is sitting out. When does he come back into play?

SMITH: Well he sat out this morning but he is teaming up with David Toms in the afternoon session. They are right are losing their match, they are down 1, I believe, through four holes right now as they are playing. Captain Hal Sutton, the U.S. captain said that Mickelson, despite his struggles on Friday still is too good a player, winning a masters green jacket earlier this year.

And keep in mind Mickelson and Toms when they played two years ago of golf teamed up, they did very well for the U.S. so Sutton is trying to go back to the future if you will and try to reconjure some magic with that pairing this afternoon.

SPENCER: All right, good to see you Larry, Larry Smith from the Oakland Hills Country Club in Bloomfield Township, Michigan.

Finally today, students from Polytechnique (ph) University in the Philippines tried to set a colorful record today. Organizers say 20,000 people each wearing one of the seven colors of the rainbow got together to set a record for the world's largest human rainbow. It was part of an event celebrating school's history. The old rainbow record was set by about 11,000 students in Hong Kong back in 2002.

Well, there's much more ahead on CNN SATURDAY. At the top of the hour, it's "Next@CNN." Here's Daniel Sieberg with a preview.

DANIEL SIEBERG, CNN ANCHOR: Ahead on "Next@CNN" some hurricane history. How does Ivan compare to the biggest storms of the past? And a look at what new cell phones can do. How about recording four hours of video.

SPENCER: And then at 4:00, "CNN Live Saturday." Confused about where President Bush and his challenger John Kerry stands on issues such as defense and homeland security. We'll take a closer look with political analyst Ron Brownstein. At 5:00, "People in the News" profiles rapper and actor LL Cool J, that and more all ahead this afternoon coming up at the top of the hour.

A check of the stories in the news.

(COMMERCIAL BREAK)

SPENCER: I'm Collins Spencer at CNN Center. "In the News" now. Two kidnapped Americans and their British colleague are seen in a newly aired video in Al Jazeera.

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 September 18, 2004 - 12:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLINS SPENCER, CNN ANCHOR: It's 2:00 p.m. on the East coast, 11:00 a.m. in the west. I'm Collins Spencer at CNN's global headquarters in Atlanta.
Ahead this hour.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Just took my breath away, broke my heart. We have friends up here.

(END VIDEO CLIP)

SPENCER: A North Carolina community comes to grips with Ivan's deadly impact. We'll have a live report from North Carolina town where dozens were wiped out by a wall of water.

More documents surface about President Bush's time in the national guard. Will it finally put an end to question about his service or is it just more fuel for a political fire.

Plus how some in Congress want to punish U.S. companies who that head overseas to avoid the tax man. That and more in the moment.

first stories now in the news.

(NEWSBREAK)

SPENCER: Ivan continues to cause problems as it moves into the northeast. Heavy rain is falling in Pennsylvania and New York. Also tornadoes and mudslides hit parts of West Virginia today. The storms march up from the Gulf Coast was deadly. Florida and North Carolina were hardest hit. At least eight people killed in both states. In all, the death toll from Ivan stands at 25 at five Gulf coast states.

More than a million utility companies lost electricity. Power is slowly being restored. Ivan did billions of dollars in damage. Insurance could face four billion dollars in claims.

Rain from Ivan is still falling and Atlantic Ocean continues to be a cauldron, brewing more storms.

And Jacqui Jeras is in the weather center to look at this weekend's weather. And Jacqui, you can't wave the all clear sign yet, can you? JACQUI JERAS, CNN METEOROLOGIST: Not just yet, but we are a lot more relaxed about what's out there right now, Collins. So that's some good news. What's left of Ivan still causing a few problems, mostly problems now. The rainfall, maybe a one to three inches, at best, we think four today. Some of the heaviest showers are now across the northern parts of New England, across Maine and into the Boston area here. You can see your even on the back side of the system now.

Center of circulation is push of the coast around Delaware at this time. And then Ivan finally looks like it's going to be history, so some very good news there. There's still numerous flood warnings in effect. And keep in mind some of these rivers that have flowed out of their bank, it's going to take several days for them to receded and move back within them. So, we are going to continue to see some flooding concerns as there also still some more run off going on here.

Tornadoes was a big threat yesterday. That threat now has diminished today, through more than 50 tornadoes across the eastern U.S. yesterday, from the Carolina's extending all the way up into Pennsylvania.

This is the latest on Jeanne. Jeanne is back to tropical storm, was a tropical depression yesterday, so it's fired up just a little bit as it moves towards the Bahamas right now. But it appears like Jeanne is not going to be a threat to the United States. It still (UNINTELLIGIBLE), we don't want to rule it out just yet. However our computer models have been consistent for more than 24 hours now, keeping it out to see after it skirts through the Bahamas. So some very good news there on Jeanne.

On another note, we do have another tropical in the Pacific, moving towards Baja, California. This is Javier, and that is going to be bringing in some very heavy rains. There is also a strong storm front moving in across the west and Javier will bring some flooding threats we think across the southwest throughout the weekend -- Collins.

SPENCER: All right, Jacqui. Jeanne, you are not wanted.

JERAS: I know it.

SPENCER: Well, the western edge of North Carolina was devastated by Ivan. Rain swollen rivers still pose a threat to victims of the storm. At least eight people in that part of the state were killed. Survivors have began the clean up.

Sean Callebs is in Macon County. Hi, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hi, Collins. Indeed a beautiful day here in western North Carolina, one that doesn't really tell the full story about the devastation and the real tragic situation from the remnants of Hurricane Ivan playing out in this area.

Right now there is a search in rescue team in an area about 15 minutes from where we are, in the town of Franklin. What happened was a wall of water came rushing through this area Thursday night around 11:00. This after Ivan had dumped between eight and 12 inches of rain on parts of western North Carolina. Usually Peeks Creek is something between five and six feet wide. Well, authorities say the water got 30 feet high. They could look at the water line on huge trees and homes were just ripped from foundations their foundations, roads simply washed away completely. And a number of large trees were simply splintered.

Right now, some 300 rescue personnel are combing through the splintered homes. They are looking for any possible survivors and yes, they're also looking possibly for more victims.

Now for residents of this area, some of the terrifying news is this is an area not prone to flooding. It is not in a flood plain. So residents were not told to evacuate.

(BEGIN VIDEO CLIP)

WARREN CABE, MACON CO. EMS DIRECTOR: This is probably the worst natural disaster in Macon County's history. I have no way of telling you any type of a dollar figure what this is going to inflict upon us at this time. But our agencies are working with all the other volunteer agencies involved throughout the county and state of North Carolina and the federal agencies that are involved to make sure that we recover from this, respond to the incidents we have, keep the people safe in Macon County and bring an end to this incident and recover from it as quickly and safely as possible.

(END VIDEO CLIP)

CALLEBS: Now, the Peeks Creek area is about an hour 50 minute drive west of Asheville, North Carolina. And think about it, the eye of the Hurricane Ivan, were passed along the gulf coast a full 530 miles from the damage it caused up here. There are people still unaccounted for, but authorities are not saying exactly how many nor do they have any specific answer.

Now, Among the rescue workers out there looking are members of the national guard, members of the Macon and Graham County EMS, Urban Rescue Team from Charlotte, North Carolina, as well as a swift water rescue team from Raleigh. There are also members of the highway patrol and FEMA out there as well. Now Macon County especially hard hit by the remnants of Ivan, but emergency officials here say they can't even begin looking at other areas of the county until they will have thoroughly exhausted all search and rescue operations in this little area of Peeks Creek. There are still 200,000 people without electricity in this area.

A number of roads simply washed out, destroyed. Parts of Interstate 40, parts of Interstate 26 were closed for a while. We're told they will be opening if they're not open already. Simply a tremendous devastation in this area. They're glad that Ivan has simply moved out. As you hear, the director of emergency services say this is probably the worst natural disaster anyone knows of in Macon County, North Carolina -- Collins. SPENCER: It looks like it's going to be a long recovery process.

Thanks Sean. Sean Callebs in Macon County, North Carolina.

We'll have more on the impact of Ivan, Chris Lawrence joins us live from the Gulf Coast with a live report at the bottom of the hour.

A powerful car bomb in northern Iraq and more hostages turn up on videotape.

Senior international correspondent Walter Rogers, reports from Baghdad.

(BEGIN VIDEOTAPE)

WALTER RODGERS, SENIOR INTERNATIONAL CORRESPONDENT (voice-over): The kidnapers threatened to kill these two Americans and one British engineer by Monday unless the Americans release all female Iraqi prisoners now in custody here. All three men were blindfolded, a gun was placed at one's head.

UNIDENTIFIED FEMALE: (SPEAKING IN ARABIC)

RODGERS: The Arab television network, Al Jazeera, was the first to broadcast the demands of Tawaden (ph) Jihad believed affiliated with the alleged terrorist mastermind Abu Musab Al-Zarqawi. This is the house from which from which the two Americans and one British subject were kidnapped Thursday. Their Iraqi guard did not show up that night clearing the way for the kidnapping.

Also, this weekend, a string of car and roadside bombs. In the northern city of Kirkuk, the Iraq National Guard headquarters was the target of a suicide car bomber. The car at high speed bore down on the guards shooting at the driver, but not before he detonated a powerful explosion killing 19 Iraqis there and sending more than 60 others to hospitals.

Security institutions like the Iraqi police and national guard have been the principal targets of the insurgents this past week. A roadside bomb was detonated in the Baghdad's Karata (ph) neighborhood, killing one person. The apparent target, cars thought to belong to westerners still in Iraq.

A convoy of U.S. Soldiers on the road to Baghdad's airport was the target of a car bomb. Three soldiers were reported injured in that.

(on camera): Earlier Saturday, that same airport road was closed because overnight it was found to have been laced with roadside bombs. Despite all that, however, Iraqi Airways has relaunched its first commercial flight in 14 years to Damascus. Walter Rodgers, CNN -- Baghdad.

(END VIDEOTAPE)

SPENCER: The United Nations is threatening to punish sudan's oil industry if the killing in the darfur region doesn't stop. CNN senior U.N. correspondent, Richard roth is waiting in New York for the security council vote. Hi, Richard.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Hi, Collins. Secretary of state Colin Powell says what's happening in Darfur is genocide. The U.N. Security Council is not ready to agree to that, but in a couple hours it might approve a resolution which would establish a commission of inquiry sending investigators to find out just exactly what is going on. The holdout so far causing a delay in approval of this resolution is China.

(BEGIN VIDEO CLIP)

WANG GUANGYA, CHINESE AMBASSADOR TO U.N.: What we feel is that our concerns with this draft, which will not encourage all the Sudanese parties to engage in serious peace talks. So, this draft will be a recipe for failure for the peace talks. I think what we want to see is peace in Sudan because as far as there are peace, many other problems of other nature will be solved. This is my hope.

(END VIDEO CLIP)

ROTH: China and other nations will start consulting here in about an hour. A million people have been homeless in Sudan, 30,000 to 50,000 estimated killed. The security council is going to threaten sanctions but the language has been been slightly watered down. But still should approval indeed occur, the Sudanese government may face the threat of sanctions against leaders and against the oil industry. China, by the way, a major buyer of oil from Sudan -- Collins.

SPENCER: Thanks, Richard. Richard Roth in New York.

Ralph Nader wins a key victory in Florida. We'll explain why the Reform Party candidate will appear on the ballot this November. Plus, the Kerry campaign gets good news from a Navy investigator about the Democratic candidate's service in Vietnam.

And still ahead, the Americans are looking for a comeback on a day two of the Ryder Cup. Will the benching of one of the team's biggest stars make the difference? We'll have a live report from Michigan in about 40 minutes.

(COMMERCIAL BREAK)

SPENCER: Ralph Nader is joining John Kerry and George Bush on the ballot in Florida. That's the decision of the Florida Supreme Court by a 8-1 vote. Nader is to be listed as a Reform Party candidate. Critics say he cost Al Gore a victory in Florida and the presidency.

Some questions surrounding Kerry's Vietnam service have been answered. The Navy's chief investigator has determined Kerry's military service medals were properly approved and awarded. In a memo, the Navy inspector general said there is no need for additional action. The group Judicial Watch had requested the review. It claimed Kerry's medals were awarded based on false statements and asked the Navy to consider revoking them.

Well in the meantime, the Pentagon is releasing more of the president's Vietnam era military records. Democrats insist those records show favoratism to the son of then congressman George H.W. Bush. The story from CNN's Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): After a federal judge ordered a full release of all documents relating to George W. Bush's time in the National Guard, Pentagon officials say they looked beyond Bush's personnel records for anything relating to his service or his squadron. In fact, the bulk of the 79 pages of additional documents are history'ses of an Alabama National Guard unit which don't mention Bush. So they do little to answer the question of whether Bush showed up for alternate service in Alabama in 1972 or '73 after he was suspended from flying status in Texas for missing a required physical.

But included is a 1968 thank you letter written by his father, then a Congressman, in response to the commander of his son's training base who had written a complimentary letter two weeks earlier. "That a major general in the Air Force would take interest in a brand new Air Force trainee, made a big impression on me," the future first President Bush wrote about his son. "I do have the feeling he'll be a gung ho member of the U.S. Air Force."

The Democratic Nationality Committee was quick to cite the letter as evidence of preferential treatment. "These documents demonstrate yet again that George Bush was a fortunate son, who received special consideration unavailable to the average American," it said in a statement.

The White House insisted the new documents show its fulfilling the president's request to release everything regarding his military service. Among the new documents, a press release written about young Lieutenant Bush sent to his hometown, Houston newspapers which reflexes the drug culture of the time. "George Walker Bush is one member of the younger generation who doesn't get his kicks from pot or hashish or speed. Oh, he gets high all right, but not from narcotics." Noting his solo flight in an F-102 fighter jet.

(on camera): Predictably, the White House insists the documents were moore proof that will President Bush fulfilled his military obligation, while the Democratic National Committee chairperson said if the president was truly proud of his service, he wouldn't be releasing the documents on a Friday night. Jamie McIntyre, CNN, the Pentagon.

(END VIDEOTAPE)

SPENCER: Debate other the military records of both major candidates just won't go away. Joining us for a look at where the race stands as the weeks tick down to election day is Amy Walter of the Cook Political Report in Washington. And Amy, let's start with the debate over the military records. Has this affected the campaign on both sides over the last couple of months?

AMY WALTER, COOK POLITICAL REPORT: Well, I think it certainly has. And I think for the most part, this has been a much more of a benefit for President Bush than for John Kerry.

Look, the more that this race, as we go into the last six weeks is a back and forth between medals and about documents and what's true and what's not true, then the more the focus is off of issues like the economy or jobs or Iraq or the deficit. That's not good for John kerry. Those are the issues he needs to make this campaign about.

I think even when his friends think they're trying to help and they're trying to get out there and really make the case against George Bush, I don't think it's all that helpful to continue the back and forth on Vietnam. I think for most voters, they would much rather talk about issues important to them today.

SPENCER: Let's talk about Iraq, that being a campaign issue. And one of the polls says that President Bush has a 12-point lead. How do you see that in regards to Iraq?

WALTER: Well, I think that the issue of Iraq is still very, very fluid. Remember, before this convention the president had a lead, quite frankly, always had a lead on the issue of who do you see as better fighting the war on terrorism. But on the issue of Iraq, voters have gone back and forth over the last few months.

Going right into the Republican Convention this August, a majority of voters said actually they thought it was not a good idea that we had gone into Iraq. Today, that number has changed. But I still think that underlying all of this is a deep sense of anxiety. I don't think that Americans feel overwhelmingly positive or negative about Iraq. But I do think that major issues in that country, what the sort of stuff that gets on the front page of the papers here, that helps to swing this issue one way or the other.

And I think that for the president, linking Iraq as closely as he can to the broader war on terrorism helps him. For John Kerry, he's trying to links it as much as possible to the overall budget deficit and to the -- what some have called you know, getting caught up there in a quagmire.

SPENCER: Amy, let's talk about the bounce that President Bush got after the Republican Convention. Do you see that evaporating now.

WALTER: Well, I think we've seen a lot of polls over the course of this last week, and quite frankly they're telling us many different stories whether the president is up by double digits or whether it's tied. But I think fundamentally, we have a race that has always been, the dynamics have change and it's always been very tight.

Fundamentally, this is a race that is going to be decided by two, three points either way. We know that there are basically nine or ten battleground states where this race will be won or lost. So, I don't think that overall the dynamics have changed. We've simply seen that the president has gone from being tied or slightly behind before August to now being a little bit ahead, and the momentum is going his way. But I think that fundamentally we're still in a very, very close race.

SPENCER: All right. We'll see where it goes from here. Amy, thanks for joining us.

WALTER: Thank you.

SPENCER: Amy Walter of the Political Report. The Cook Political Report.

Well, voters in presidential campaigns say they rarely hear enough about the issues. Starting Monday, CNN begins a series of special reports on the issues. That's airing all week on "AMERICAN MORNING" at 7:00 eastern. Monday's issue: terrorism and keeping America safe.

Getting back on their feet in the sunshine state, the days after Ivan hit. How close are Floridians getting to their lives back to normal? We'll have a report from Pensacola.

Plus this:

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We lose about $5 billion in revenue. Serious amount of money. It's staggering.

(END VIDEO CLIP)

SPENCER: U.S. companies that relocated overseas to avoid taxes may one day take a financial hit if some in Congress have their way. Find out how after the break.

(COMMERCIAL BREAK)

SPENCER: A leading senator once said, a billion here, a billion there, pretty soon you're talking about real money. That's what Congress is trying to wrestle back from some U.S. corporations who allegedly cost the U.S. Treasury billions of dollars. CNN's Lisa Sylvester reports.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The consulting and technology firm Accenture was award a $10 billion Homeland Security Department contract this summer, the largest contract ever for that agency. Not bad for a company whose corporate offices are in this building in Bermuda. But new legislation approved by the Senate would bar companies who set up shell headquarters in tax havens from biding on future department of Homeland Security contracts. A similar bill passed the house in June.

REP. ROSA DELAURO, (D) CONNECTICUT: We lose about $5 billion in revenue, a serious amount of money, it's staggering the amount of money. And to think, then, that we would reward those companies, that we reward them with federal contracts, is equally as staggering.

SYLVESTER: This week, a House amendment by Congresswoman Rosa Delaura tried to prohibit these companies, dubbed Benedict Arnold's, from receiving government contracts from two other federal department, Treasury and Transportation. That amendment was defeated along party lines. Opponents argue shutting out companies from the bidding process drives up costs for taxpayers.

CHRISTOPHER PREBLE, CATO INSTITUTE: Because you are paying more, because you are reducing the number of eligible bidders, and you're perhaps getting less service or a less effective product, whatever the case may be, because you are somewhat arbitrarily ruling certain competitors out of the process.

SYLVESTER: Both sides are carefully watching what happens with the Homeland Security Appropriations Bill. It still has to go to a congressional conference committee. Where even though the language is identical in the House and the Senate bills, it could still be stripped.

SEN. CARL LEVIN, (D) MICHIGAN: We've seen these kind of games played before in conference, where conferees drop provisions which they should not drop when they're both in the House and the Senate bills.

SYLVESTER: And even if it is in the final version of the bill, President Bush will have the last say.

(on camera): The Homeland Security Department Appropriations Bill will likely move through Conference Committee quickly, and could be on the president's desk by the end of the month. Both the White House and the Republican congressional leadership have opposed banning corporate expatriates from receiving government contracts. Lisa Sylvest, CNN, Washington.

(END VIDEOTAPE)

SPENCER: Britain tries to salvage a Northern Ireland peace plan, but Tony Blair and his Irish counterpart end the three days of talks without a deal. Find out if there's still hope for a compromise.

It was a week of graphic evidence in the Scott Peterson murder trial. We'll find out if prosecutors made any headway with the jurors in our legal debate.

Plus, Pensacola, Florida picks up the pieces following Ivan. We'll have a live report from there next.

(COMMERCIAL BREAK)

SPENCER: Thirty five prisoners released from U.S. detention at Guantanamo Bay returned home to Pakistan today and went straight to jail for interrogation. Pakistani officials convinced the Bush administration the prisoners were not members of Al-Qaeda even though they had been captured in Afghanistan. Ivan's aftermath, the search is on for survivors after a flash flood swept through the western North Carolina Mountains. Several homes have been washed away by a wall of water, possibly 30 feet high. At least four deaths are reported in Macon County.

Let's get back to the aftermath of Ivan. Still a hurricane when it slammed into the Gulf Coast. It's a vicious wind to rip through northwest Florida. Power remains out to thousands, many roads and bridges remain impassable. Chris Lawrence has the latest from Pensacola. Hi Chris.

CHRIS LAWRENCE, CNN CORRESPONDENT: Well Collins, the road crews have been making progress over the past few hours, starting to clear a lot of debris out of the roadways and clear that up. Here at the marina it is going to be quite a bit longer, I mean you can take a look at just the sheer size of this concrete dock that was literally just hoisted up and dumped on the pier. I mean the waive surge was so strong, it just pushed boats right up on shore, again, as we saw with that dock, literally leaving it 10, 12 feet in the air.

A lot of the boat owners who have come by to look at their boats here say this is easily millions of dollars in damage. As we take you now from here into the heart of Pensacola, you can also see some of the damage that's gone on to homes, to businesses. We have some updates now since we last talked to you a few hours ago, 340,000 people remain without power. That sounds like a lot, but when we started the day, we were at about 400,000. So the crews all making some progress in terms of getting the lights turned back on.

Also, the emergency operation center is still advising people to stay off the roads at night. The crews are still out there. Gulf Power is out trying to restore power, which is quickly becoming the biggest problem here. Even Governor Jeb Bush during his tour of the area yesterday said not having electricity is more than an inconvenience for some people. Especially the elderly. It is a very real problem. We are having 90 degree plus days here.

People don't have a lot of food; a lot of people don't have access to clean water. And getting the power and the water back on is becoming the big priority. This is some of what President George W. Bush may see tomorrow. He's scheduled to tour this hurricane-ravaged area. And unfortunately this will be his third such tour in just about a month.

SPENCER: Chris, there was a mass exodus in that area prior to the hurricane coming in. Have many of the residents made their way back into the area?

LAWRENCE: Yes, a lot of them are starting to now get through as they move some of the debris out of the roads; they are able to get access. We spoke with one woman over the past couple days who came back, we watched her see her home for the first time. And she was devastated because it wasn't there. I mean, literally when we say the storm destroyed her home, it erased it.

There was nothing left but the foundation and a pile of wood. She couldn't find a piece of furniture, nothing. So when people come back, it's been just devastating to see what they find the at times.

SPENCER: Yes, I can only imagine. Chris Lawrence in Pensacola, Florida. Thanks Chris.

And turning to Alabama, much of that state's prime Gulf Coast was pummeled by Ivan. Alabama Governor Rob Riley along with other state and federal officials took a look at the devastation from the air and on the ground.

(BEGIN VIDEOTAPE)

GOV. BOB RILEY, ALABAMA: Everything that you see here from the taller building all the way down, all of these beach houses are going to have to be totally demolished because the foundation has been eroded. They're beginning to lean one-way or the other. So everything that you see here has got to be destroyed. You think water's not powerful? Look at that.

Yes, looks like pretty nice convertible at one time. Just wondering how long it -- how far it floated. Looks like everything here is going to be totally ruined. Alabama doesn't have no state has the resources, Florida, Alabama, Mississippi, anyone to be able to compensate for all this damage. When it comes to infrastructure like this road, like these bridges and I-10 that we're going to fly over in just a minute, no we have to have federal help. Stay and we'll let him do it.

UNIDENTIFIED MALE: This is the boat.

RILEY: This is the first time in my lifetime we've had anything like this occur. So there's no question we not only need to build back but need to build back as soon as we can.

This is the most beautiful beach in America if not in the world. We're going to build it back better, more beautiful than it's ever been. Beach is still here, still one of the most beautiful places in the world. We've got to come back and put it back together.

(END VIDEOTAPE)

SPENCER: Amazing pictures. Well talks to restore home rule in Northern Ireland ended in failure today. Here's CNN's Fionnuala Sweeney I believe castle outside of London.

FIONNUALA SWEENEY, CNN CORRESPONDENT: No break down, but no break through either. The British and Irish prime ministers have emerged from three days of talks here at Leed's castle in England without a comprehensive agreement between Northern Ireland's rival political parties. At issue had been IRA decommissioning of weapons, policing and justice in Northern Ireland and an end to paramilitary activity.

The two prime ministers saying however they believe that a deal on IRA decommissioning of weapons could be struck.

(BEGIN VIDEO CLIP) TONY BLAIR, BRISTISH PRIME MINISTER: We believe we could resolve the issues due with ending paramilitary activity and putting weapons beyond use. As a matter of urgency, all parties need to conduct consultations on the force of agreement before we can proceed. That is subject to a satisfactory outcome to these consultations, we can finally and at long last resolve the issue of arms in the politics of Northern Ireland.

BERTIE AHERN, IRISH PRIME MINISTER: I urge all parties and join with Prime Minister Blair, particularly those in positions of power and responsibility to finish the job in the interests of all of the people in northern Ireland.

(END VIDEO CLIP)

SWEENEY: However, the main sticking point appeared to be the Democratic unionist party's objection to any agreement being reached without a restructuring of how local government in Northern Ireland works. That in effect say the British and Irish prime ministers would mean a complete renegotiation of the Good Friday agreement, which put in place this current peace process. The DUOs say they wanted to see ministers in Northern Ireland held accountable to the Northern Ireland assembly, that is the Northern Ireland parliament.

And because the population in northern Ireland is predominantly unionists, that would mean the unionist having more seats in the northern Ireland assembly which the British and Irish prime ministers and indeed the other parties say would in effect would mean a return to majority rule. Jerry Adams of Sinn Fein said after the talks that it was now up to the British Prime Minister Tony Blair to handle the peace process and move it forward.

GERRY ADAMS, SINN FEIN PRESIDENT: That's the essential issue. (INAUDIBLE) Can the prime minister handle that; I think could very much for once actually bring us to historical moment.

SWEENEY: However, the Reverend Ian Paisley, leader of the Democratic unionist party said he was too old to be bluffed into any agreement without first seeing IRA decommissioning of weapons.

(BEGIN VIDEO CLIP)

IAN PAISLEY, DEMOCRATIC UNION PARTY: (INAUDIBLE) we say we will believe it when we see it. And we're going no farther than that.

(END VIDEO CLIP)

SWEENEY: These talks are set to continue at a lower ministerial level over the next few weeks. Tony Blair the British Prime Minister is saying a deal could be done this side of Christmas. Fionnuala Sweeney, CNN, Leed's Castle, England.

SPENCER: In other news Russian police managed to thwart a car bomb attack in Moscow last night. The inter facts and news agency reports a vehicle laden with explosives was stopped on a main road leading directly to the Kremlin. Yesterday, Chechen terrorist leader Sameal Basayia claimed the responsibility for several recent terror attacks including one that killed hundreds of children at a elementary school.

A top U.N. official accuses both Israel and the Palestinian authority of failing to meet their obligations under this so-called road map to peace. Prime Minister Ariel Sharon is being criticized for suggesting Israel might maintain settlers in the West Bank long after withdrawing from Gaza and the Palestinian authority is being chastised for failing to crack down on suicide attacks.

Car bombs, suicide attacks, terrorist kidnappings, the real horror of these events is seldom translated into human terms. This Sunday, CNN presents "Impact of Terror," a deep and disturbing look at a 2001 bombing through the eyes of its victims. In this excerpt, the injured and the first responders rush to deal with the immediate aftermath of a suicide bombing. A warning now, some viewers might find some of these scenes disturbing.

(BEGIN VIDEOTAPE)

MIRIAM SHUSHAN, BOMBING VICTIM: I was looking around me and like where am I, what happened to me and then like everybody's screaming it's a bomb.

CHAIM FOXMAN, EYEWITNESS: I ran inside and I saw terrible things. Bodies that were still burning and there was smoke coming out of them and I couldn't even touch them. I took tablecloths and used them to put out fires on people who were burning.

UNIDENTIFIED MALE: The phone was left hanging from my hand and I immediately dialed his number.

MICHEL AMAR, JERUSALAM FIREFIGHTER (translator): My wife screamed on the phone, we got hurt in a bombing. We got hurt in a bombing and then the call was disconnected. I didn't understand exactly whether -- whether they were alive or no longer among the living. I said to myself, Michele, stand up and run to the vehicle.

ANAT AMAR, BOMBING VICTIM (translator): It started to get really messy, yelling from every direction. The sound of ambulance sirens, police, people running.

UNIDENTIFIED MALE: Canadian volunteer Orley Pinchuk was one of the first paramedics on the scene.

ORLEY PINCHUK, CANADIAN VOLUNTEER PARAMEDIC: I open the door to the ambulance and stepped out. The first thing that I saw was many strollers, maybe four or five on their sides. No babies in them. It was my first real mass casualty incident and I thought I would be able to prepare for something like this. And there was no way.

There were overturned tables and chairs and I'm not even talking about inside the restaurant. I'm talking about in the intersection.

(END VIDEOTAPE) SPENCER: CNN presents a move past the politics and headlines to examine the impact of terror through the eyes of those who struggle with its legacy. Join us Sunday night at 8:00 Eastern, 5:00 Pacific.

(COMMERCIAL BREAK)

SPENCER: All right let's take a look at stories making news across America now. In Maine, a dome demolished. Explosives brought down main Yankee's containment dome yesterday. It is one of the final steps toward decommissioning the former nuclear power plant.

And in Michigan, a 17-year-old is in jail accused of making terror threats against his high school. Police in Clinton Township were tipped off after boy made alleged threats in an and line chat room. Police say weapons and bomb making materials were found in his home.

He was the cute child actor from the "Home Alone" movies. Now Macaulay Culkin is in trouble with the law he was arrested on drug charges during a traffic stop in Oklahoma City. Authorities say they found marijuana and controlled substances without a valid prescription. He's been released on $4,000 bond.

In today's "Legal Roundup," Scott Peterson weeps and the jury gasps at a gruesome display of autopsy photos. Also, Martha Stewart chooses to do time. With us today, two of our favorite lawyers criminal defense attorney Richard Herman in New York and in Cleveland, Ohio civil rights attorney and law professor Avery Friedman. Hello to you gentleman.

AVERY FRIEDMAN, CIVIL RIGHTS ATTORNEY: Nice to see you Collin.

SPENCER: Well let's start with the pathologist in the Scott Peterson case. He said that Laci's baby was not born before the body was dumped into the San Francisco Bay. What does this do to the prosecution's theory? Lets start with Richard.

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: OK, Collins, both sides really scored this week with this testimony. Obviously, I'm told it was extremely gruesome and graphic testimony. It angered many of the injuries and there's only one person sitting as defendant here and that is Peterson, that is who they convent on.

But on the other hand Geragos brought out the fact that the prosecutors own pathologist testified that the size of the remains of the infant were consistent with a full term baby. And if that was the case we know that this baby was due to be born February 10th or around that time. And we all know from December 24th on, with GPS tracking devices and detectives undercover, Scott Peterson's every move was watched. That's reasonable doubt, Collins.

SPENCER: Avery, what are your thoughts?

FRIEDMAN: There's no reasonable doubt. In fact for the first time in over four months, the prosecution finally has put their case together. The reasonable doubt issues that have been floating around, the prosecution is tightening it up that fetus was dispelled from the body in the water. Remember, Geragos opening statement that there was a kidnapping of Laci Peterson by cultists vivist (ph) sexists, all those theories are going down the drain.

Right now the prosecutor has one week to go. I think they're going to make that burden and remember we're only half way through we're still going to have to hear what the defense has to say.

SPENCER: And Avery, you bring up the issue of Geragos theory in regards to the cult being involved here. Should Geragos continue with this type of -- continue on this type of issue right there?

FRIEDMAN: Well he doesn't have a choice. Right now, what's happened over this past week is you had experts on the stand. All he could really do was bang at the credibility, trying to find inconsistencies. But the experts number one, the pathologists; number two the criminologists that dealt with the cord, which had no effect. Remember there was a recess early and finally the expert that dealt with the concrete in which Scott said, well, we used it for the driveway.

And you know what, what came out in the testimony this week was that Scott's explanation about using the concrete for the driveway, it didn't match-up.

HERMAN: That's wrong, Avery. But in addition to that Collins very important. The prosecutions own pathologist testified he could not rule out the fact that this child came to full term. That is reasonable doubt. And the jury's is going to be charged to find him guilty beyond a reasonable doubt. And Avery if you don't see reasonable doubt here, I've got to get you some eye cleaner or something.

FRIEDMAN: There is some doubt Richard, it is not reasonable doubt.

SPENCER: OK, let's move on and talk about the baseball incident that happened this past week in regards to Frank Francisco of the Texas Rangers throwing the chair into the stands hitting the fan in the nose.

FRIEDMAN: Jeez.

SPENCER: Does the D.A. in San Francisco, how do they handle this? How do they go from here?

HERMAN: It's an open and shut case on him. They're going to make a quick deal both criminally and civilly. Probably going to end up paying her about $100,000. But as Leda said earlier today on CNN, one of the crimes here was that the husband was right in front of her and he ducked down and the chair went over his head and hit his wife.

FRIEDMAN: Why is that a crime?

HERMAN: That California chivalry, I don't know what that is. FRIEDMAN: Let me tell you something, if Frankie Francisco was as accurate as a reliever as he was with the chair, in smacking Mrs. Wayno (ph) Texas wouldn't be 5.5 games out. Legally speaking, this is a big deal. There wasn't just one reliever. Three relievers and a coach. It may well be on the civil end of things that the organization itself may bear some legal responsibility here.

HERMAN: A $100,000 settlement.

FRIEDMAN: I don't know.

SPENCER: Gentleman do you think the attorney for the victim should sit down with the folks in San Francisco to see if they can work something out here?

HERMAN: It is all about money. Just like Kobe, it's all about money.

FRIEDMAN: No, maybe it's all about justice because they're responsible, the organization may be responsible. Let's get the criminal case out of the way and then let them be accountable for what happens here.

HERMAN: They don't need any money then, right Avery.

FRIEDMAN: Nobody knows.

SPENCER: Lets move on to Martha Stewart now. We're moving along here. Was it a good idea for Martha Stewart to say she wanted to go to jail immediately?

HERMAN: Well, I think that Martha Stewart really doesn't have a leg to stand on, on her appeal. And because of that, I think probably she's doing the right thing. The fact that her lawyer stood up and proclaimed they have such a great appeal is belied by the fact that here see is requesting to go in prison. Believe me if that was my client and we had a great appeal, I wouldn't let my client go into jail right now.

SPENCER: Avery what do you think?

FRIEDMAN: Well they never really had a great appeal. Richard actually got that one right. The fact is that Martha did it not because of legalities, not because of justice; she wanted to enhance business issues for her corporation. Had nothing to do with reality. She was going to jail anyhow. She was going to loose on appeal, it was the right thing to do.

SPENCER: All right, always a pleasure to talk to you all.

FRIEDMAN: Nice to see you again.

HERMAN: Nice talking with you Collins.

SPENCER: We got Richard Herman, a criminal defense attorney and Avery Friedman civil rights attorney and law professor. Thanks to both of you.

HERMAN: Take care.

FRIEDMAN: Happy to be here.

SPENCER: The Europeans set a Ryder Cup record against the Americans on the first day of competition. Can Tiger Woods and Company gets the yanks back on track today? A live report from Michigan is up next.

(COMMERCIAL BREAK)

SPENCER: Barry Bonds chasing baseball's brass ring. Joins Babe Ruth and Hank Aaron in the exclusive 700 Club. He drove a 392-footer in San Francisco last night. Afterwards, he described the home run as unbelievable, like a dream. Bonds have 42 homers so far this season.

Well, team USA recoups some of its losses from yesterday's dreadful show at the golf's Ryder Cup Tournament. CNN's sports correspondent Larry Smith who has been picking up some golf tips I'm sure has the latest from Oakland Hills Country Club in Bloomfield Township Michigan. Hey Larry.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Hey Collins, how are you? Yes, you know, it really could be kind of a tepid celebration right now for the Americans who came out strong early in the morning competition. It turns out, well, they only got two wins and then have a third match in the morning's session. The fourth match going to the European when Ryder Cup rookie Paul Casey making his debut in this competition sunk a par putt on 18 to get the victory for the Europeans and end the morning four-ball session.

Now Tiger Woods last night gave an inspirational speech to the American team urging his team to play loose and to play their game and make sure they focus and try to make those short putts they kept missing on Friday. He followed that up with a dominant victory this morning. He and Chris Riley beating Darren Clark and Ian Polster (ph) 4-3. Woods teaming up with Davis Love III versus Potty (ph) Harrington and Paul McGinley in the afternoon sessions. Phil Mickelson set out this morning after he struggled mightily Friday; he served as a vocal supporter this morning.

He and Woods by the way on Friday teaming up for two of those losses the U.S. suffered on Friday. Mickelson is with David Toms. He right now is down versus Miguel and though Mass Levet (ph) of France. In fact the Europeans now point total they lead 8-4. They only need 14 total points to retain the cup and they are off to a hot start this afternoon foursomes leading three of the four matches in the afternoon foursomes. An alternate shot from after playing here in the afternoon.

Singles matches coming up tomorrow. But today in the afternoon sessions the only U.S. Lead so far, Tiger Woods and Davis Love they are one up through one hole in their match. That's the story right now from Suburban, Detroit. Let's go back to you.

SPENCER: Hey Larry, the Europeans are looking awfully strong. Are they gaining more confidence as the matches go on?

SMITH: Well I think certainly they gained some confidence by the fact that they managed to get 1.5 points in the morning session. Because once again a couple of hours ago, the U.S. was leading in all four matches and appeared they would get their first sweep in a four ball session since 1967. The fact they came back and managed to split one match and win another certainly took a little bit of steam out of the American team here. But still a very pro-U.S. crowd. We will see if they can rally them through the afternoon session.

SPENCER: Now Larry, Mickelson is sitting out. When does he come back into play?

SMITH: Well he sat out this morning but he is teaming up with David Toms in the afternoon session. They are right are losing their match, they are down 1, I believe, through four holes right now as they are playing. Captain Hal Sutton, the U.S. captain said that Mickelson, despite his struggles on Friday still is too good a player, winning a masters green jacket earlier this year.

And keep in mind Mickelson and Toms when they played two years ago of golf teamed up, they did very well for the U.S. so Sutton is trying to go back to the future if you will and try to reconjure some magic with that pairing this afternoon.

SPENCER: All right, good to see you Larry, Larry Smith from the Oakland Hills Country Club in Bloomfield Township, Michigan.

Finally today, students from Polytechnique (ph) University in the Philippines tried to set a colorful record today. Organizers say 20,000 people each wearing one of the seven colors of the rainbow got together to set a record for the world's largest human rainbow. It was part of an event celebrating school's history. The old rainbow record was set by about 11,000 students in Hong Kong back in 2002.

Well, there's much more ahead on CNN SATURDAY. At the top of the hour, it's "Next@CNN." Here's Daniel Sieberg with a preview.

DANIEL SIEBERG, CNN ANCHOR: Ahead on "Next@CNN" some hurricane history. How does Ivan compare to the biggest storms of the past? And a look at what new cell phones can do. How about recording four hours of video.

SPENCER: And then at 4:00, "CNN Live Saturday." Confused about where President Bush and his challenger John Kerry stands on issues such as defense and homeland security. We'll take a closer look with political analyst Ron Brownstein. At 5:00, "People in the News" profiles rapper and actor LL Cool J, that and more all ahead this afternoon coming up at the top of the hour.

A check of the stories in the news.

(COMMERCIAL BREAK)

SPENCER: I'm Collins Spencer at CNN Center. "In the News" now. Two kidnapped Americans and their British colleague are seen in a newly aired video in Al Jazeera.

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