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CNN Live Saturday

Pirate Attack Off the Coast of Somalia; Government Performs a Samllpox Drill; Damaging Testimony Delivered in the Enron Trial; French Protests Turn Violent

Aired March 18, 2006 - 14:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Place throughout France. The one you're looking at right now is unfolding in Paris, but apparently a number of other cities throughout the country are experiencing demonstrations but we don't know if they have been unfolding just like this one in Paris has now showing violence between police officers and union workers, as well as students.
Now apparently the education ministry has reported moments ago that beyond the street protests, that the student demonstrations have also paralyzed 16 universities and have disrupted 35 others. Thirty-five other educational institutions. We don't have any other further pictures or information on that yet. Just that information coming from the education ministry.

OK. And we are trying to get information from people who are actually on the ground there. Of course, when we get people in place there and wired up, we'll be able to bring that to you. Meantime, we want to bring you up to date on other top stories that we're following for you now at the top of the hour.

Off the coast of Somalia, a gun battle between the U.S. Navy and some suspected pirates. One suspected pirate was killed and five others were wounded when two U.S. Navy ships returned fire on the suspected pirate ship. The Pentagon says no U.S. sailors were injured.

Just ahead of the third anniversary of the U.S. lead invasion of Iraq, anti-war protestors are on the march. This was the scene earlier today in Sidney, Australia. Demonstrators also gathered in the U.S., Britain and Japan. More details on that coming up.

Mourners gather in the former Yugoslavia to pay their last respects to Slobodan Milosevic. The former Yugoslav president died last weekend in the Netherlands where he was on trial on war crimes charges. Details coming up on that story.

A South Carolina man accused of kidnaping two teenage girls and sexually assaulted them in an underground dungeon is now in custody. He's awaiting a bond hearing. More details on that.

One of the world's best known American fashion designers has died at the age of 92. Oleg Cassini died yesterday in a Long Island hospital. Cassini designed much of Jackie Kennedy's wardrobe as the first lady.

Again, we're watching these pictures just coming in out of Paris, France. We are looking at what appears to be one single protestor who is challenging the armed police. Police in riot gear there in Paris, France. The demonstrations have been going on for a while now but just turned violent within the past hour. We're, of course, trying to get even more details about what exactly is transpiring as the students and union workers take on a number of riot police there in Paris, France. And , of course, we're going to continue to monitor these pictures as they come in here at CNN.

Meantime, U.S. Navy ships under attack. It happened today when suspected pirates fired on two Navy ships off the coast of Somalia. Here's our Pentagon Correspondent Barbara Starr with new photos just in.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT, (voice over): Two warships, the Cape St. George and the Gonzalez, were patrolling off the waters off Somalia. They approached a suspicious vessel. There were pirates on board brandishing shoulder fired grenade launchers and those pirates opened fire on the U.S. Navy and immediately sailors on board the decks of both of those U.S. Navy war ships returned fire with a variety of machine guns and weapons.

They killed one pirate, wounded five. A number of people have been taken into custody. The Navy now investigating this entire incident trying to determine why these pirates thought they could possibly win opening fire against U.S. Navy war ships.

Of course, this is an area where there has been a good deal of smuggling and pirate activity on the high seas out there. The United Nations just a few days ago issued a notice encouraging all shipping off the coast of Somalia to be very careful of pirate activity. A lot of shipping has come under attack out there and that is hindering U.N. efforts to provide relief supplies to victims of the drought and famine in the area.

But this encounter between pirates and U.S. Navy war ships possibly, sources tell us, possibly signals a new ratcheting up of hostilities. The Navy just hasn't seen this type of thing where pirates attempted to open up on them. It was late last year, of course, that pirates attempted to attack a cruise ship in the region, the Seabourn Spirit, that passenger cruise ship, and they were fended off. Those pirates also having these shoulder fired grenade launchers. But this incident today certainly catching the Navy's attention.

(END VIDEOTAPE)

WHITFIELD: Barbara Starr reporting there.

Meantime, pirate attacks are becoming common off the coast of Somalia. Last November, pirates fired on a luxury liner operated by Seabourn Cruise Lines. No passengers or crew were injured.

Meantime, we continue to watch these live pictures coming in out of Paris, France, where a number of students and union workers are clashing with police there. We understand that nearly a half a million people are protesting throughout the country in places of Marca (ph), Lyon (ph), Talouse and apparently these huge crowds of students, trade unionists and left wing politicians, they're being described as, have been taking to streets across France to press the conservative government to try and scrap a new law that they fear will erode job security for young workers. More specifically, this really is the second time in three days that students have been commandeering these kinds of demonstrations. This time they are joined by the unions and a number of employees.

And the group of people here, they're trying to press the conservative prime minister, Dominique de Villepin, to withdraw this measure, which would take effect at the start of April and already the interior ministry is saying that protests just like this have already paralyzed 16 colleges and universities and possibly even more. And you're seeing the protestors being rather combative with the armed police and police in their riot gear right there just from this vantage point. But we don't know the big picture, which is where exactly this is taking place, in what part of Paris, and how many police and how they're able to try to contain this group of protestors, which for a while was peaceful but now clearly is being rather combative and violent.

We'll continue to check in on those live pictures out of Paris. When we get any more information, we'll be able to bring that along to you.

Meantime, in today's "Security Watch," concern at the highest levels of the federal government about the potential for a terror attack involving smallpox. CNN's Elaine Quijano is at the White House to explain who is doing what and why.

A lot of folks involved in this project today, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: That's right. Hello to you, Fredricka.

Well, this morning, what we basically had was a number of cabinet secretaries and other top officials engaging in what's called a table top exercise. A drill really to assess how the federal government might respond in the event of a possible smallpox attack. Now the White House is being very careful to say and emphasize that, in fact, there is no evidence that a smallpox attack is imminent. They say this was merely an exercise.

But among those who attended this morning was Homeland Security Secretary Michael Chertoff. Also we saw Health and Human Services Secretary Mike Leavitt and the president's Homeland Security Adviser Fran Townsend. An administration officials say that this exercise was designed to challenge federal, state and local plans, to identify gaps in preparedness and to exercise lessons learn from Hurricane Katrina for a scenario where a catastrophe exceeds the capability of state and local government.

Now the Bush administration says that the federal government has, in fact, stockpiled enough smallpox vaccine for every American. And you'll recall it was a little over three years ago that President Bush actually ordered that military personnel be vaccinated against smallpox.

Now as for today's exercise, President Bush did not attend. He was actually at the presidential retreat, Camp David, in Maryland, getting ready to deliver a speech Monday in Cleveland on Iraq. In his radio address this morning, the president previewed some of his comments, saying on Monday he will share concrete examples of how he believes his administration's approach in Iraq is working. And tomorrow, Fredricka, of course, marks the three-year anniversary of the start of the U.S. led invasion.

Fredricka.

WHITFIELD: All right. Elaine Quijano, thank you so much, from the White House.

Meantime, another top story that we continue to watch right now out of Paris. Large, sizable protests taking place in Paris, France, as well as in other parts of the country. And apparently a number of these students and trade unionists and other employees are upset of a new labor law that is expected to go into effect in April. Right now we want you to listen in on our CNN International coverage right now.

ISHA SESAY, CNN INTERNATIONAL: Criticism in France. And, as I say, across towns and cities in France people have taken to the streets to show their disapproval, to voice their dissent. People are saying that this is actually a crisis for the French Prime Minister Dominique de Villepin. You see there these live pictures. Riot police there gathering. You see the protestors and just scenes of -- I suppose the best way of describing it is somewhat chaotic. But a few weeks ago -- I should say a week ago we saw scenes of similar unrest in the Sabon (ph) in France and students there again protesting against this law and we see much the same this evening.

If you are just joining us, you are looking at pictures coming out of Paris. Riot police were on standby earlier on today but for much of the day there was no report of any unrest. But in the last hour, things have taken a darker turn. As you see, people throwing projectiles and milling around and certainly the mood has darkened.

While the government says this is a law that will encourage employers to hire young people, but students fear -- and there are many students that have been out protesting today across France and in recent days in the Sabon and in other locations -- they say that it will just take away job stability. People have said that, you know, these scenes remind them of 1968 and the riots that took place -- the protests, I should say, that took place in France. But people say this is something very, very different. These are young people who very, very much feel that they would be undervalued and become disposable if this law comes to pass.

But what you are seeing now is just scenes of I suppose the most apt way of describing it is chaos on the streets of Paris. People milling around and riot police standing very close by. Earlier on we saw the riot police charge at the crowd, but for now they seem to be some way off. And you're just seeing projectiles and missiles being thrown away -- being thrown in their direction. We're trying to get someone to give us some insight, some perspective on the scenes that you're looking at but we are working on that and for now we are bringing you these live pictures from Paris, France, to give you some sense of what is going on. Large numbers have taken to the streets in recent days. Estimates varying up to a million. You see the riot police there again closing in.

But really, you know, France in the autumn face riots and in parts of the country. That time it was immigrants that were rioting against the way they felt they were being treated and excluded from French society and now a couple of months later we see further scenes of unrest, further scenes of people taking their dissent, taking their disapproval to the streets of France to protest. To protest against what they see as a lessening of their rights. That is certainly how critics of this law see it. That this law will erode their rights.

If you are just joining us, viewers from the United States, what you're looking at are live pictures coming out of Paris, France, where protestors have taken to the streets in protest at a new employment law which critics say targets young people and makes it easier to hire and fire them. That has been roundly rejected by the government, in particular the French Prime Minister Dominique de Villepin. Dominique de Villepin's the prime minister who says this is a law that will actually make the labor market more flexible and easier to hire. His government proposed this law as part of a series of measures he says designed to help youths in the French suburbs who took to the streets last year.

As I say, you're looking at live pictures coming out of Paris. Huge crowds of students, trade unionists and left wing politicians have taken to the streets to press the conservative government to scrap this new law we've been talking about they fear will erode job security for young workers. As I say, the figures have varied, but what we know is hundreds of thousands turned out in Paris and over 150 other cities and towns in a growing protest movement that has created a serious crisis for Prime Minister Dominique de Villepin. It's the biggest show of anger yet at jobs plans that has led to street violence and threatened to weaken the government.

In autumn, as we said, there were scenes of further chaos and protests as immigrants took to the streets to protest against their treatment and laws which they said kept them out of French society, kept them from being fully integrated into the French fabric of society. And now we see young people taking to the streets. Their anger boiling over. Earlier on we saw riot police charging at the crowds. You see more of the same now.

WHITFIELD: You've been listening to Isha Sesay of CNN International and their live coverage there of the protests that have become violent there in Paris, France. Many protests happening throughout the country.

We're also joined on the phone now from Paris, James Graff, who's with "Time" magazine.

And, James, we know what is at issue here. The students and union workers and other employees have taken to the streets because they say they don't like this new jobs plan that is to go into effect in April. But from the government's point of view, it will make the job market more flexible and it is acting as an advocate for the workers. Why is it these students and many of these workers, employees, seem to think otherwise?

JAMES GRAFF, "TIME" MAGAZINE: Well, they're used to the idea in France that a job is forever. That's been the way things have developed over the last 40, 50 years. The idea of a permanent contract for labor. And many of these young people, the term they use is Kleenex jobs. These are -- they feel that they're going to be getting jobs that are just not worth as much, don't have as much value as the jobs that they would get under the previous system.

Having said that, many of these young people right now are getting short-term contracts, they're getting internships that frequently (ph) aren't paid at all before they can get into the labor market, which is good for those that are in it but not very good for those that aren't.

WHITFIELD: So where did this push come from? Why did the prime minister, Dominique de Villepin, want to push this -- what's being called the new jobs contract?

GRAFF: Well, 22 percent is the rate of unemployment for French people -- French job seekers between the age of 18 and 25. It's really been over 20 percent in France since 1983. I mean this is a congenital, serious problem for France. And he thought this would be a way to address it.

He was pushed, I think, in a sense to deal with this partly because of the riots last November in the Banu (ph), in the poorer areas around some French cities where unemployment rates are 40 percent, sometimes 50 percent. So the idea was to try to make a way that would encourage employers that feel that hiring somebody is too big a deal in France because it commits you to all kind of severance pay down the line if you have to get rid of someone, to try to make it easier to hire. But the problem there is, as I said, people don't want -- they feel this is -- not just for young people, but this is the beginning, this is the thin edge of the wedge, if you will, of a kind of liberal, as they say, Anglo Saxon (ph), that is American/British system that they feel is just not suited to France and its traditions.

WHITFIELD: So what is the motivation that some people seem to think is behind this contract? That de Villepin has more political reasons as to why he's pushing for this. That he would be the successor of Jacques Chirac.

GRAFF: Well, yes, that's right. Very much. Everything in France really right now on the political scene happens in the shadow of the coming presidential elections in May of 2007. It's clear that Jacques Chirac, who's been in power since 1995, is not going to campaign again. And de Villepin is -- would like very much to be a contender, but his main rival on the right is Nicolas Sarkozy, the interior minister. And the head of his party, who has much more forceful, take charge kind of personality and I think many analysts have said that de Villepin felt compelled to take this move just to prove that he was able to make bold and maybe controversial efforts to show he could stand up to someone like Sarkozy.

WHITFIELD: All right, James, if I could ask you to stand by. We need to take a short break. But we want to continue our coverage here of these violent protests that are unfolding there in Paris. James Graff with "Time" magazine, stick around. We'll talk more with him right after this break.

(COMMERCIAL BREAK)

WHITFIELD: Welcome back.

More now on the violent protests unfolding in Paris and in other French cities all because of what's being called a new jobs contract that is to go into effect in April. We're still joined by James Graff with "Time" magazine.

And, James, you know, these protests have been going on for the past couple of days. We even know that the interior ministry had blamed these protests on shutting down some of the colleges and universities. But did anyone anticipate that a gathering of students and even employees or union workers would result in this? Now violence clashing, clashing protesters with police in riot gear?

GRAFF: Well, sadly, this is something of tradition in France. In both Thursday's big march and today's, they started off peacefully and, in fact, I'd say far -- the great, great majority of people were peaceful and probably most of them regret this violence. But in every one of these demonstrations, there are hooligans, whatever you want to call them, people that are really out to face up to the cops and have this kind of battle. It's almost a ritual within the ritual of marching that people can't really figure out how to stop.

WHITFIELD: Because, right now, aren't the police there blaming some of these fringe groups of what they're calling fringe groups of radicles and anarchists as the ones who are actually instigating this violence here?

GRAFF: I'm sure that's the case.

WHITFIELD: And that it's not the students and employees?

GRAFF: Yes, these are not students. These are not -- I mean I was there, particularly on Thursday at the Sorbon (ph), which, of course, is an iconic place for this kind of conflict. And I talked to a lot of people. Most of the people that were doing the hardcore throwing of anything they could get their hands on were not students.

WHITFIELD: But these students and workers would say this is the last thing they wanted because now, instead of feeling like a protest or demonstration would help empower them to deliver a message, whether it be to the prime minister or anyone else in government, that instead it might take away from their efforts that it is resorted to this.

GRAFF: Well, that's right. But like I say, it's such an accepted ritual. Not accepted but -- I don't know, well known and familiar ritual in France that this is what happens to every one of these things. And so in a way it's already discounted as something that is going to happen every time. That's not to say people condone it. It's just I don't think it's enough to take the air out of the actual opposition to the government's policy. It seems to be growing despite the fact that the two biggest demonstrations now have ended in violence.

WHITFIELD: So again, James, to kind of rearticulate what you had described as being at issue with this new jobs contract. A number of the students and employees are upset with the fact that this new law would allow employers to extend short-term contracts or even internships where by in the past there would be more long-term contracts, better guaranteeing employment for a number of people there. And so these students or even union workers are upset that their right, so to speak, of the right to have a long or a lengthy employment career might be shortchanged as a result of this contract? Did I get that right?

GRAFF: Yes. Except the internships and the short-term contracts already exist. In a way that the government's saying, hey, folks, this is even a better deal than what you're getting now. A lot of you are not getting the long-term contracts. You're doomed to a series of unpaid internships.

Here's something else, we're going to give the employees an option that will allow them to hire you for up to two years. And if they like you, they can keep you on afterwards. But if there's, for some reason, their business goes south or whatever, there's a problem, they can get rid of you and therefore they're going to be more willing to hire you. So this is a new option kind of between the internship and the long-term contract that the government hoped would be greeted with a better welcome than it's gotten.

WHITFIELD: James Graff with "Time" magazine out of Paris. Thank you so much for joining us. And, of course, we're going to continue to watch the developments as they unfold there in Paris and in other cities around France all over this new labor law at issue. And, of course, we'll have more news right after this.

(COMMERCIAL BREAK)

WHITFIELD: Here's what's happening now in the news. How would the United States respond to a terrorist attack that used smallpox as a weapon? That was the focus of a preparedness drill at the White House today. It's described as a table top exercise involving several top administration officials.

Peace activities mark the third anniversary of the war in Iraq with a series of protests around the world. In many places, the turnout was lower than predicted. In Australia, about 500 people marched, while in London police say only about 15,000 protesters showed up, a disappointment for organizers who had been hoping for 100,000.

Tens of thousands of supporters turn out for the burial of former Serb leader Slobodan Milosevic. He died a week ago while on trial for war crimes during the Balkan wars back in the 1990s. Three church buses collided on a Los Angeles area freeway. About 30 students were on each bus, but only seven minor injuries are being reported. Police say a vehicle was stalled in a traffic lane and a chain reaction accident followed.

Jazz man Narvin Kimball is dead at the age of 97. Famed for his singing and banjo playing, he was the last surviving founding member of the New Orleans famed Preservation Hall Jazz Band. He died in South Carolina where he has been living since Hurricane Katrina.

Six years after he was let out of prison early, a South Carolina man convicted of raping a 12-year-old girl is back behind bars and Kenneth Hinson faces some serious new charges. Hinson, who faces a court hearing a short time from now is accused of kidnapping two teenage girls and sexually assaulting them in an underground dungeon in his home.

(BEGIN VIDEOTAPE)

VOICE OF ANDY LOCKLAIR, DARLINGTON CO. SHERIFF'S DEPT.: With the construction well done with this highway that he had, this bunker-type dungeon-type deal, there may be some other things. There's some intelligence that's coming into our office that there may be one or more of these places that he may have had built.

(END VIDEO CLIP)

WHITFIELD: The two girls Hinson is accused of kidnapping and assaulting escaped the underground room and called police, setting off a statewide manhunt for Hinson.

In Los Angeles, a new team of police detectives is looking into the unsolved 1997 killing of rap star Notorious B.I.G. The 24-year- old was shot to death. His family sued the city claiming the police department covered up the involvement of rogue officers in the killing.

Two months ago, a federal judge declared a mistrial ruling that a police detective intentionally hid statements by a jail house informant linking the killing to two officers. A retrial is expected later on this year.

Well, you might remember this rather dramatic video from 2003. Now William Strier has been sentenced to life plus 25 years in prison for this attack on his attorney, Gerald Curry, outside a California courthouse. Curry survived his injuries. After the sentencing on Friday, Curry said he's satisfied Strier will never leave prison.

Today's legal briefs begin in Alexandria, Virginia. It appears admitted al Qaeda conspirator Zacarias Moussaoui could again face the death sentence. The judge in the case says she will allow evidence about aviation security as long as it hasn't been handled by TSA attorney Carla Martin.

The government's case was thrown into crisis after it was revealed that Martin e-mailed details about the trial's opening statements and testimony to potential witnesses. Martin says she will tell her side of the story on Monday.

Well, here to dish the details, our own legal eagles, Avery Friedman and Richard Herman. Good to see you, gentlemen.

RICHARD HERMAN, CRIMINAL DEFENSE ATTORNEY: Hi, Fred.

AVERY FRIEDMAN, LAW PROFESSOR: Hi, Fredricka.

WHITFIELD: All right. Well, Richard, let me begin with you. Did the judge -- her most recent decision -- does that bode well with you to allow untainted witness or testimony in court?

HERMAN: Absolutely not, Fredricka. The Judge Brinkema has a real opportunity now to send a message that she will not -- federal courts and state courts, they will not allow prosecution teams to provide witnesses with direct testimony and evidence in a case. It's trial advocacy 101. Fred, they don't let witnesses in the courtroom to watch the testimony of other witnesses. We want, pure clean testimony.

This is outrageous conduct. And this Carla Martin got caught here. By the way, let's see what happens on Monday. Let's see who else was involved in this, because I'm sure she's going to have plenty to say Monday afternoon. But she got caught. In how many cases do they not got caught?

Come on -- 96 percent conviction rate in federal district courts all over the country here. It's very difficult to get an acquittal. And when you're dealing with stuff like this -- and I'm not saying it happens every day -- but I'm saying it does happen and she got caught and this judge now must make a stand.

And the bottom line is, the case was going horrible anyway because the fact that he was interviewed in August, they're claiming that based on that interview they could have prevented the World Trade Center disasters? We knew that bin Laden was saying he was going to blow up the buildings anyway. We didn't do anything about it.

WHITFIELD: So, Avery, what's most important to get to the bottom of here, whether indeed there are any untainted witnesses, whether it be, you know, Carla Martin or anybody else who got to the witnesses to convey these messages or whether it is important to get to the bottom of whether she really is the only miscreant, as she's being described?

FRIEDMAN: Well, I think that's exactly the question. You know, Richard took off on the wild blue yonder about Carla Martin's behavior. No one is going to condone that. But the issue is, I think while there was a lightning strike when this occurred, this is really a triumph for integrity, because I think what Judge Leonie Brinkema is trying to do -- and I think she will succeed in doing it -- is getting to the truth.

If there's an untainted witness coming from the old FAA, now TSA, that's critical to the government's case. Remember, what this is about is this. If FAA would have known about the 19 conspirators and Moussaoui would have explained that -- in other words, cooperated -- then 9/11 may have been avoided.

And that's the importance of this testimony, so on Friday the federal district judge says, yes, an untainted witness may be introduced. That evidence may be introduced. And so that really saves the possibility of the government's death penalty effort here.

WHITFIELD: Is it really crossing the line, under no uncertain terms, for an attorney to talk to a witness, to prepare a witness for testimony and to give them an idea of what is taking place in court?

FRIEDMAN: Yes, Richard was right about that. I mean, again, we still have to hear Ms. Martin and how she's going to explain this away. But you know what? The truth is she has to show cause why she will not be held in contempt. And, you know, I mean, this is so basic, not only under the federal rules of evidence but ...

WHITFIELD: Do you think she should be charged with something?

FRIEDMAN: Oh, she's going to be charged.

(CROSSTALK)

WHITFIELD: Both of you. OK. I have you in agreement on that. But I'm sure you will not be agreeing on our next topic which we're going to get to after the break. The fraud and conspiracy case against two top Enron executives has nearly reached the halfway point. Our legal experts there, Avery and Richard, will be right back to analyze the latest moves in that trial.

(BEGIN VIDEO CLIP)

CHRISTOPHER BOOS, EXECUTIVE PASTRY CHEF, DUNKIN' BRANDS: You have to first find your love of the craft.

UNIDENTIFIED FEMALE: This, Christopher Boos believes, is the key to turning sweet dreams into reality. And it's paying off. Boos has spent more than 25 years perfecting his skills as a pastry chef receiving numerous honors for his creations. Most recently, he was appointed captain of the U.S. team for the upcoming World Pastry Cup in Leon, France.

As executive pastry chef for Dunkin' Brands, Boos uses his greatest asset to keep the company's menus fresh and palatable.

BOOS: The world needs people that work with their hands. And you can take that fine ability to work with your hands and get to place like I am today.

UNIDENTIFIED FEMALE: What does Boos recommend to those trying to choose a career path?

BOOS: In life you have to follow the passion that you have so that you get fulfillment. I'm doing that. And I'm chasing it fully. And it's great.

(COMMERCIAL BREAK) Damaging Testimony Delivered in the Enron Trial; French Protests Turn Violent

WHITFIELD: We're back now with "Legal Briefs" and the Enron trial this time. She was billed as the star witness for the government in the case against her former bosses, Jeff Skilling and Ken Lay.

Former Enron Vice President Sharon Watkins testified she warned Lay that the ship was going to sink and implode in a wave of accounting scandal. Enron's accounting scandal destroyed the company and put thousands of people out of work and left investors holding a very empty bag.

We're joined now again by Avery Friedman and Richard Herman, to continue our look at these legal briefs. So, gentlemen, Sharon Watkins, she said that she warned Ken Lay both in an anonymous note as well as face to face. Was her testimony, Richard, very incriminating?

RICHARD HERMAN: Yes. This is devastating testimony coming in against Lay. You know, it's the cumulative nature. One after the other after the other testify. You cross examine them as rats. You say they have motivation for their testimony and want to get out of jail and not go to jail or prison.

Here, this woman was not prosecuted. She's under no immunity. She's up there testifying. It's coming in as pure testimony. It is very damaging to Lay, especially after providing him with this information what happens to her? They end up bouncing her around from office to office and they try to seize her computer and it's big problems.

AVERY FRIEDMAN: They tried to fire her, too.

HERMAN: She really ties him in. She tied in Lay to the knowledge of what was going on at Enron. That's what the prosecution is all about. She's a devastating witness.

WHITFIELD: And so Ken Lay's defense is going to be saying, at least they have been saying all along, that he was a little bit in the dark about some of the details and that he was counting on everybody else. Will that float after hearing her kind of testimony?

FRIEDMAN: I think Sharon Watkins' testimony blows that up. This case is far from over. We're about halfway done right now. What will happen is that the government is very carefully building its witness base, but what I expect we'll see here is that we're going to see in this trial the testimony, live testimony, of Ken Lay and Jeffrey Skilling. These are charismatic guys who will be powerful when they take the stands.

WHITFIELD: Richard, yes or no you see Ken Lay and Jeffrey taking the stand?

HERMAN: That's going to be a last-minute call. I don't think they made that decision yet. This is damaging testimony against Lay. He may have to get up there to try to rebut that.

WHITFIELD: That will be the most watched week, certainly if and when that happens. Thank you so much, gentlemen, always good to see you. Have a good weekend.

Of course, we continue to watch what has become violent set of protests throughout Paris and in other parts of France, as well. On the phone is, William Irigoyen, he's a freelance journalist. He joins us from Paris now. William, from your vantage point what do you see?

VOICE OF WILLIAM IRIGOYEN, FREELANCE JOURNALIST: To be honest, I was there in the center of Paris where the events appeared, but I went back to my office. The thing I would like to say is that the demonstration was quite cool until the end of it. Then we got to a big square in the center of Paris called The Nation's Square and I would say that approximately 200 people began to throw paved stones and empty glass bottles.

WHITFIELD: How do you think some of those people were? We are hearing from police they think they were members of radical groups and that they're anarchists.

IRIGOYEN: Two days ago such violent actions appeared already. And it was said that those people were members of far right movement and as well as leftist people. But to be honest, I don't know if the people who make these violent actions tonight were unemployed leftists or if they came from the suburbs. I don't know exactly.

The thing is it was very violent. It was very violent. There were only 200 people.

WHITFIELD: Is this enough to potentially reverse this decision for this new jobs contract to make Prime Minister Dominique De Villepin change his mind about having pushed for this in the first place?

IRIGOYEN: I would say that tonight the government should ask itself whether it is a good solution to go on this direction. Because even if there were violent actions, I think that the vast majority of the French people are opposed to this reform. I wrote tonight that 68 percent of the French people who were asked about their feelings concerning that, they are opposed to that. The government should think another time and maybe say, OK let's go back and let's erase that reform.

WHITFIELD: So why is it that the majority of the French people polled say they don't like it when the government itself is saying that this new jobs contract is meant to increase employment particularly among the less privileged. Why would anyone be against that?

IRIGOYEN: Because many people in France say, OK, with this reform an employer could have the opportunity to sack one person without having to tell him in advance, so that's the reason why many French people say it's very dangerous. Everyone can be sacked of his society within six months and this is -- there's no progress in that, according to the vast majority of the French people.

WHITFIELD: When you talk about that and cite the example of within a six months, because as we heard described earlier from a Time magazine reporter, that a lot of people look forward to getting rather lengthy work contracts which could be over a period of years or maybe even spend an entire career in one place whereas now this new kind of new law would mean that it could be restricted to a matter of months, if not just a couple of years?

IRIGOYEN: The heads -- I don't have an English word for that -- the people that are responsible of the different universities in Paris say that, OK, let's make a deal with the government. You say that you, government, are not going to do this reform during six months. We discussed within this time and after six months we go back to the table with you and let's try to find another solution.

WHITFIELD: Freelance journalist William Irigoyen. Thank you so much for joining us from Paris. We'll continue to watch the developments there taking place out of Paris. More of CNN SATURDAY when we come back.

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