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Lou Dobbs Tonight
Hurricane Claudette Pounds Texas; North Korea's Nuclear Claims
Aired July 15, 2003 - 18:00 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.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, July 15. Sitting in for Lou Dobbs, Jan Hopkins.
JAN HOPKINS, GUEST HOST: Good evening, everyone.
Tonight, parts of Texas are swamped by floodwater after Hurricane Claudette barreled into the coast today. The hurricane has now been downgraded to a tropical storm, but Claudette left behind a trail of destruction. The hurricane pounded coastal highways and tore boats from their moorings. Tides were at least 6 feet higher than normal. Buildings near the coast suffered severe damage, as wind speeds exceeded 80 miles an hour. Some gusts reached nearly 105 miles an hour. Palm trees and power lines were brought down by the wind.
Tonight, utility companies say about 75,000 people are without electricity. The Coast Guard rescued two fishermen after their boat sank near Galveston. The fishermen were covered in diesel oil, but otherwise unhurt.
To tell us how bad the damage is, I'm joined now John Zarrella, who is in Port Lavaca.
(CROSSTALK)
JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF: Hi, Jan.
Yes, we're in Port Lavaca. And it is -- as you mentioned, it's time for storm-weary Texans to start picking up the pieces of what this Category 1, a minimal hurricane, left behind. You can see here behind me the front structure on a couple of the historical buildings here that were built in 1910, came down during the storm. The brick fronts came down. Up at the top, it just came tumbling down, fortunately, no reports of any injuries.
We'll give you a look inside the buildings now as well. And you can see that all in here, much of the structure is down on the ground and damaged. And a lot of this is what you can see all over the Port Lavaca area. Now, when the storm made landfall, it came inland with winds sustained at 80 to 85 miles an hour, gusting to over 100 miles per hour. And there were trees down. There were power lines down everywhere.
There is flooding in parts of the coastal area of Texas. And, at one spot where we stopped, the roof was literally blown off of the front second-story porch on one home here in the Port Lavaca area. Now, up the coast a little ways, where they really suffered some of the storm surge damage, in the town of Surfside, much of that town, a lot of it, the roads and even some the homes, were completely under water.
So, while this storm was a Category 1 Hurricane, Jan, it certainly has left behind quite a mess along the coastal areas of Texas, central Texas, and all the way up to north Texas, for the residents here to pick up, no power -- a lot of power outages here, but from what we understand, at least to this point, no reports of any serious injuries and certainly no deaths at this point -- Jan.
HOPKINS: That's good news, John Zarrella in Port Lavaca, Texas.
In Galveston, waves surged over the seawall protecting the city. Water covered much of the island's west end, damaging homes and cars.
Haven Daley of our affiliate News 24 Houston joins me now live from Galveston -- Haven.
HAVEN DALEY, NEWS 24 HOUSTON REPORTER: Well, it's still windy here but in Galveston, but the island has apparently weathered the storm, not before Claudette left her mark, however, with some fairly substantial damage, especially focused on the island's west end.
(BEGIN VIDEOTAPE)
DALEY (voice-over): The sign outside the local movie theater reduced to rubble. And the damage on the west end looked like a scene from Hollywood.
DAN RICHARDSON, RESIDENT OF GALVESTON: It's very devastating. It's not what I thought was coming at all. It's not what I thought. I thought I could get up this morning and the storm would be blowing over, because I've been out here through many storms, but not one like this one.
DALEY: Police tried to keep sightseers off the roads, many of which were flooded. And roads not covered by water were covered by debris. Driving through it felt like maneuvering through an obstacle course.
CATHY YOW, RESIDENT JAMAICA BEACH: This is people's houses. And I'm sorry that -- we haven't had a storm in so long that a lot of people don't understand that everything underneath floats away.
DALEY: Before the storm passed, crews were already restoring power and clearing roads. And residents began the difficult task of assessing damage and cleaning up what Claudette left behind.
(END VIDEOTAPE)
DALEY: Now, the Galveston City Council has just issued a local state of emergency to help pay for all this mess. The good news in all this? No serious injuries reported -- back to you.
HOPKINS: Thanks, Haven Daley of our affiliate News 24 Houston live from Galveston. And turning now to a growing diplomat storm, North Korea says it has finished converting spent fuel rods into material to make nuclear bombs. The White House says it's trying to find out if the claim is true. President Bush is on record as saying he will not tolerate a nuclear-armed North Korea.
White House correspondent Suzanne Malveaux joins us now -- Suzanne.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Jan, for a week, President Bush has been answering charges that the White House exaggerated intelligence about Iraq's weapons programs to justify the war, now the White House again on the defensive about another member of the so-called axis of evil, this time North Korea.
It was last week that North Korean officials told the State Department that they had produced enough plutonium to make a half- dozen nuclear bombs, moving it one step closer to becoming a nuclear power and a threat. Now, the administration is working to confirm whether or not these claims are actually true, at the same time, defending their strategy, their policy, of using international diplomacy to keep North Korea in line.
(BEGIN VIDEO CLIP)
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Reprocessing is a serious concern. And it's something that we will work to address. We seek a diplomatic solution. But, as we move forward, we will remain in close contact with South Korea, Japan, China and others to address this and find a solution.
(END VIDEO CLIP)
MALVEAUX: But, Jan, some national security experts are calling this diplomatic effort a failure. We heard from former Secretary of Defense William Perry in "The Washington Post" this morning in an interview saying -- and I am quoting here -- "I have thought for some months that if the North Koreans moved toward processing spent fuel rods, then we're on a path toward war."
Now, one of the things, Jan, that the Bush administration is considering, however, is looking at setting up an international embargo, that this would basically intercept those ships that are carrying illegal drugs and weapons that are exported out of North Korea, this trying to send a message that they would be damaged politically as well as economically -- Jan.
HOPKINS: Suzanne Malveaux at the White House, thank you.
And later in the show, I'll be talking about that nuclear standoff with James Lilley. He's a former ambassador to South Korea and China. He's now a senior fellow at the American Enterprise Institute.
The U.S. administrator in Iraq, Paul Bremer, today said that coalition troops will stay in Iraq no longer than necessary. Part of the 3rd Infantry Division is already on its way home. And today, there was good news for the rest of the division after its tour of duty in Iraq was extended.
Senior Pentagon correspondent Jamie McIntyre has more -- Jamie.
JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Jan, there is no question that members of the 3rd Infantry Division were bitterly disappointed when the Pentagon pulled back from its promise to have all of them home in the next two months. Just listen to this sergeant, who was one of the first soldiers into Baghdad and is now enduring the daily guerrilla war.
(BEGIN VIDEO CLIP)
SGT. ERIC WRIGHT, U.S. ARMY; The guys are hanging in there. And they do their job. But you can't help but notice the looks on their face, just like they're exhausted. They're mentally and physically exhausted, to the point that -- some of hoped that they would get -- so that they could home.
(END VIDEO CLIP)
MCINTYRE: After announcing last week that all three brigades of the 3rd Infantry Division would be coming home, one this month, one next month, one in September, the Pentagon has said, not so fast.
Now, the commanding general of the 3rd Infantry Division, Major General Buford Blount, said this in an e-mail to the families. He said, "Due to the uncertainty of the situation in Iraq and the recent increases in attacks on the coalition forces, a decision was made at the highest levels to maintain the current force level here." He said, "That means part of the 3rd I.D. will be staying for a while longer." He said -- quote -- "I wish I could tell you how long that is, before everything I have told you before has changed."
Meanwhile, here is what General Blount said in Iraq.
(BEGIN VIDEO CLIP)
MAJOR GEN. BUFORD BLOUNT, COMMANDER, 3RD INFANTRY DIVISION: Everybody is ready to go home. I'm ready to go home very much. These soldiers have been here about 10 months, a little over 10 months now. They trained six months hard in the desert, doing hard, hot work. And they're still doing a good job here. Morale is good. And we're doing a lot to try to work on the quality of life and trying to get them out of here.
(END VIDEO CLIP)
MCINTYRE: Now, the U.S. Central Command today issued a statement as well, saying that it remains committed to the complete return of the 3rd Infantry Division to its home station by September, pending international or U.S. replacement units.
But it also added a caveat. As always, it said, the security situation could affect deployments and redeployments. What does it all mean? Well, the Pentagon today refused to characterize the return of the 3rd I.D. as being delayed and saying it will continue to try to get them home by September. But, at this point, that remains a goal more than a promise -- Jan.
HOPKINS: So, Jamie, from the Pentagon's point of view, how do you gauge morale as a result of all of this?
MCINTYRE: Well, it's very hard to maintain morale for these kinds of troops, who are, as you heard, exhausted and hoping to come home. What they need to do, though, is figure out how many international troops they're going to be able to plug into the situation, which U.S. troops it can send. And, right now, with the continuing level of violence, they just don't feel comfortable letting all of the troops go.
HOPKINS: Jamie McIntyre at the Pentagon, thanks.
And still ahead tonight: a threat to economic recovery, rising red ink. Is deficit spending a short-term positive or a long-term negative for the economy? Peter Viles will report.
And later: our series of special reports, "Food Fight," continues. Genetically modified food is more and more common, but is it safe? Casey Wian has that report coming up.
(COMMERCIAL BREAK)
HOPKINS: Stocks fell slightly today. Investors seemed hypnotized by congressional testimony from Federal Reserve Chairman Alan Greenspan. He downplayed the danger of deflation, predicted stronger growth ahead, but warned that the Fed is ready to cut rates again if necessary.
Dow industrials fell about 48 points. The Nasdaq lost 1 1/2. The S&P 500 was down 3.
Christine Romans joins us now with the market -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, the big Greenspan reaction was over in the bond market, where prices tanked and 10-year yields soared to 10-week highs, the 10-year yield about 3.91 percent now.
In stocks, more than two stocks fell for each that rose. And volume was about 1.5 billion shares, a little bit more than yesterday. But the fireworks really exploded after the close. Intel earnings came out. Net earnings doubled from a year ago, revenue up 1 percent over last quarter and up 8 percent vs. a year ago. That stock is higher right now. And Sears announced Citigroup will buy its credit card portfolio for $6 billion in cash, that deal expected to close by the end of the year. Sears shares were up strongly after-hours as well.
Now, during the session, Merrill soared more than $2 on a strong earnings report. Altria dropped sharply and was the most active stock of the Big Board on worries it will have to fork over more bond, as it appeals an Illinois ruling. And Boeing said it will take a $1 billion charge in the second quarter because of its weak satellite business.
Now, the banks continue to turn in earnings boosted by mortgage business, Wells Fargo among them. And it hinted it may raise its dividend as well. Also, Mirant was absent from the most-active list of the Big Board for the first time in several days. The New York Stock Exchange has suspended trading of Mirant now that the company has filed for bankruptcy -- Jan.
HOPKINS: That happens.
ROMANS: Sure.
HOPKINS: Thanks, Christine.
The White House says that the federal government is deeper in debt than it thought. The budget deficit is now expected to hit a record $455 billion this year.
That is a 50 percent increase from the Bush administration's last estimate and the starting point for political argument, as Peter Viles reports.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): The Bush administration acknowledging the federal deficit is ballooning. Back in February, the administration predicted deficits of $304 billion this year and $1.4 trillion over six years. Today, both numbers skyrocketed, a $455 billion deficit this year, $1.9 trillion over six years, the administration blaming a sluggish economy and costs of war and defending its repeated tax cuts.
JOSH BOLTEN, OMB DIRECTOR: The tax cuts proposed by the president and enacted by Congress are not the problem. They are, and will be, part of the solution.
VILES: Democrats, however, seized on the numbers to slam the president's economic policies.
SEN. KENT CONRAD (D), NORTH DAKOTA: The president has told us over and over not to worry, that his fiscal plan was on track. Well, this is a train that's off the track.
VILES: Economists generally view rising deficits as a short-term positive, goosing the economy, but as a long-term threat, tending to drive up interest rates.
WILLIAM DUDLEY, GOLDMAN SACHS: The problem, in terms of the budget deficit outlook, is not what's happening in 2003, 2004, but the damage that's been done to the long-term budget outlook. The reality is that some of the tax cuts that the administration has proposed actually get bigger over time and probably will do pretty big damage to the budget as you look out 10 years.
VILES: On Capitol Hill, Alan Greenspan cut back his projection for economic growth this year by almost a full percentage point and lectured Congress to get spending under control.
ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: We've allowed that to slip. And I think that that will be creating major problems for us in the future, unless we turn it around.
(END VIDEOTAPE)
HOPKINS: On the question of whether this is a record deficit, it depends on how you measure it. In absolute dollar terms, it's easily the biggest deficit ever. But as a percentage of the economy, it is not close. This is about 4 percent of GDP. Deficits peaked at 6 percent of GDP in the early '80s.
The deficit is the topic of "Tonight's Thought." Quote: "The debt is like a crazy aunt we keep down in the basement. All the neighbors know she is there, but nobody wants to talk about her." That, of course, was from Ross Perot talking about the budget deficit in the 1992 presidential debate.
Coming up: "Food Fight." How safe is the food you eat? Our series of special reports on genetically modified food continues.
Also ahead: the latest nuclear threat. North Korea says it's one step closer to having nuclear weapons. Former Ambassador to South Korea James Lilley will be our guest.
And then: Many of you wrote in about childhood obesity and school vending machines. We'll read your e-mails next.
(COMMERCIAL BREAK)
HOPKINS: Tonight, we continue our series of special reports on genetically modified foods. As we reported yesterday, many crops grown in this country are bioengineered. But are they safe?
Casey Wian has the report from Madera County, California.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Roger Schuh grows cotton that's genetically modified to be immune to the weed killer round-up. He no longer needs to spray several different herbicides or manually weed his 800 acres of cotton. The result: higher crop yields, less work, and lower costs.
ROGER SCHUH, PARTNER, TRIPLE S FARMS: Less input, same -- or better bottom line. Hard to beat.
WIAN: Other than seeds dyed blue for identification, genetically modified cotton is indistinguishable from the conventional crop.
SCHUH: That's where it will split open. The cotton will expand and puff out.
WIAN: The blooms become clothing. The seeds become high-protein dairy cattle feed. Indirectly, much of the nation's milk is the byproduct of bioengineered crops. While Schuh believes that's safe, even he has concerns about growing G.M. crops for direct human consumption.
SCHUH: I'd want to make certain that the science was sound, that it was proven there was no side-effect. If the end user, the consumer, was uncomfortable with the product, I'd still be hesitant to grow it, because I've got to make sure that what I produce, someone in the end is going to purchase it.
WIAN: Despite the growing organic food business and protests of anti-G.M. food groups, Americans already eats lots of genetically modified food, mostly soybeans and corn.
JIM MARYANSKI, FOOD & DRUG ADMINISTRATION: We have looked very carefully at this technology and at the specific products that have been developed to date. And we're very confident that these foods are as safe as other foods in the marketplace.
JUDITH KJELSTROM, DIRECTOR, U.C. DAVIS BIOTECH PROGRAM: We do have a very vocal activist group that has a belief that anything that technology drives is unnatural, and, therefore, unsafe. I don't know if we can ever convince that group of its safety.
WIAN: The International Council for Science concludes in a recent study that currently available genetically modified foods are safe to eat and there is no evidence of any ill effects from the consumption of foods containing genetically modified ingredients. The ICS also notes potential health benefits, such as vitamin-enriched grains or nonallergenic peanuts.
(on camera): The scientists say it's too early to tell what genetically modified crops will do to the environment. Here in the San Joaquin Valley, home to some of the nation's dirtiest air, the environmental impact so far has been positive.
(voice-over): That's because farmers burn less fuel and spray fewer chemicals. Nationwide, U.C. Davis estimates, G.M. foods have eliminated 46 million pounds of pesticides from the environment. Another safety or national security issue is the U.S. food supply, as the population grows and the number of farmers shrinks.
SCHUH: We don't want to be dependent on foreign oil. I think it would be just as detrimental to be dependent on a foreign source for food. I think GMO commodities will help give us that advantage, that edge, to keep us there.
WIAN: Casey Wian, CNN, Madera County, California.
(END VIDEOTAPE)
HOPKINS: Tomorrow, we continue our series of special reports on bioengineered food with a look at the impact the foods are having on international trade.
Many of you wrote about our continuing series of special reports, "Food Fight." Deda Cherry of Santa Rosa, California, wrote: "I was absolutely furious when I discovered that I had unknowingly been consuming products that had been genetically modified. I now have a very hard time shopping for food. And many items I use to buy, I won't even touch."
Richard Utt from Loma Linda, California, wrote: "People are funny. We gorge on grease, junk food and cholesterol and then, when better grains are developed by scientists, we're alarmed for our health."
Michelle from Michigan wrote about our report last on vending machines in schools. She said: "The obesity of our children has nothing to do with those machines. Parents have less money and work more hours than ever before Unfortunately, even families with two working adults have a hard time affording juice, rather than a two- liter bottle of soda pop."
And Paul Anderson of Rockledge, Florida, said: "The problem is that we refuse as parents to accept the responsibility for failing to train and educate our children as to what they can or cannot eat."
We love hearing from you. You can e-mail us your thoughts at LouDobbs@CNN.com.
Coming up: An alarming admission from North Korea puts the world on notice. Former Ambassador to South Korea James Lilley will join us to talk about North Korea's nuclear ambition.
Also tonight: danger on four wheels, a van often used by churches and schools under investigation. Kathleen Koch reports.
And are your children safe online? Kitty Pilgrim with a special report on Internet predators and their unsuspecting young targets.
(COMMERCIAL BREAK)
HOPKINS: Returning now to one of our top stories, the White House says that North Korea now claims it has produced enough plutonium to make nuclear bombs. The Bush administration is calling the development serious.
Joining me now with more on the nuclear standoff with North Korea is the former Ambassador to South Korea James Lilley. He's now a senior fellow at the American Enterprise Institute.
Ambassador, is there any reason to believe that North Korea is not telling the truth that they are moving ahead with a nuclear weapons program?
JAMES LILLEY, FORMER U.S. AMBASSADOR TO SOUTH KOREA: Yes, of course there is, because we don't have independent verification that they're doing it.
We do have some indications, namely the fumes which we detected, the high-explosive tests they carried out. And we said as long ago as 10 years that they had enough plutonium for about two bombs. So there is really nothing new, except they're going to reprocess the rods and try and make more bombs. But it sounds to me like a threat in order to get bilateral talks going, a nonaggression pact, a great aid package, all the things they desire, by using the same old tactics they used so successfully in the 1990s.
HOPKINS: Are they getting more desperate?
LILLEY: Yes, they are. They're in very, very bad shape.
Economically, we've cut off the oil. The Chinese, I believe, have cut back their supplies a bit. The South Koreans aren't coming in. The Japanese have stopped. They're really in very, very tough shape economically.
HOPKINS: But how do you deal with them? How does the Bush administration deal with them? Because this is definitely a tinderbox.
LILLEY: Well, it's not a tinderbox. You're dealing with this problem. You've been dealing with it for a long, long time. It's all filled with threats.
You deal with them by careful alliance management, cohesion among our friends and allies, the buildings of incentives and disincentives for North Korea to do the thing that we choose for them to do or not do the things we don't want them to do, because there will be consequences. We're working with our friends and allies to get this. This is a very tough process. But I know my friends in State and Defense have been working around the clock to get this done. And I think they've made significant progress on it.
HOPKINS: What about the cohesion of the allies? Does everyone kind of agree with how to deal with North Korea?
LILLEY: That would be heaven on Earth, if that ever happened. It doesn't happen that way.
It's like herding cats. It's difficult. There's always an individual agenda. China has its agenda. South Korea has its. South Korea, I think, honestly believes that you can get them by economic incentive, drawing them in. China believes they have to be propped up, for reasons -- they don't want a failed state and a million refugees in Manchuria. Japan really goes along with us. They're trying to choke off some of their sources of illicit income. But gradually you're building up, I think, a cohesion on giving the North Koreans a very strong message.
We all agree that there should be no nuclear weapons on the peninsula. We agree that economic help, which they desperately need, will be tied in to that and that there will not be a preemptive strike against them. This talk about war, war, war, is what they talked about in '93 and '94. I don't hear this out of the current administration. I hear it out of the past administration.
HOPKINS: Now you were also ambassador to China. You say that China doesn't want refugees. What else does China not want?
LILLEY: China does not want other countries in Asia, like Japan, South Korea and Taiwan, to get any kind of offensive missiles and nuclear weapons. They do not want to see that. They do not want to see ballistic missile defense.
They would like to see economic reform in North Korea because North Korea is a huge drain on them. So they would like to see North Korea reform its economy. They did it in 1978. They also would like to see North Korea get rid of those weapons of mass destruction and take its huge commitment to the military budget and do what China did -- put it into the economy to build their country. The North Koreans have done every sappy thing imaginable other than the right thing on this.
HOPKINS: Is there a military solution?
LILLEY: No. There is not. You need the military to deter the North Koreans from doing anything irrational. Our military is strong enough to do that. You need military in limited ways for interdiction of any attempt that they have towards proliferation of weapons into the Middle East. Other than that, I think the military should not be used in any kind of action against North Korea.
HOPKINS: No kind of strike against....
LILLEY: Absolutely not. That's '93-'94 talk. That's what they talked about then. They weren't going to do it then. They used it as an instrument of psychological warfare against the North. It didn't particularly work well because they ended up paying off the North with huge sums of money for food and oil and reactors and all this sort of thing. The North Koreans made out like bandits and they want to do it all over again.
HOPKINS: How is this different from Iraq?
LILLEY: Oh, it's very different from Iraq. This is a country entirely different from Iraq. It's a sort of a mixture of the worst aspects of Korean feudalistic control and Marxist Leninist dingbat economics. It gets all of the wrong things and puts them together. It has a very oppressive system. It has a culture of thousands of years of emperor control. It is isolated. It has no resources. It's desperately poor, unlike Iraq. It doesn't have the Arab culture. It's homogeneous.
It's developed this total close-off from the world. They actually tell their people that their dear leader, Kim Jong Il, was born in a place that he never was born in. They give him attributes he never had. It's a city -- it's a whole situation built on lies.
HOPKINS: But is there any possibility of war as a result of this escalation?
LILLEY: I think it's absolutely important that you don't have that happen. You make it very clear to the North Koreans that if they try anything militarily, they'll disappear. And I think even President Clinton told them that in 1993. There is no question, there is no military option in their scenario, and we certainly don't have one, I believe.
HOPKINS: James Lilley, former ambassador to South Korea, now with the American Enterprise Institute, thanks for joining us.
LILLEY: Thank you.
HOPKINS: Turning now to tonight's quote on the issue of North Korea, one prominent U.S. senator today attacked the president and said: "All of America's credibility is at stake. When the president of the United States says we are facing a real serious worldwide challenge because of nuclear issues, he has to be believed around the world." -- endquote. That from Massachusetts Senator Ted Kennedy.
That brings us to tonight's poll: "What worries you the most? North Korea, the U.S. deficit, media concentration or Internet predators?" Cast your vote at cnn.com/lou and we'll bring you preliminary results later in the show.
Now the final results of yesterday's poll. We asked: "Would you knowingly eat genetically modified food?" Forty-three percent of you said yes and 57 percent said no.
In "News Across America" tonight, another worker from the Lockheed Martin plant in Mississippi has died from her injuries after the shooting there last week. That brings the death toll from the attack to seven people, including the shooter.
The search for a sexual predator continues in West Virginia tonight. The suspect was caught on videotape in a Target store. Police say he sexually assaulted an 11-year-old girl after convincing her he was a security guard. A similar incident in Kentucky is also being investigated.
Colorado prosecutors are looking at evidence from the state's crime lab, that they still have not charged Kobe Bryant with anything. A week and a half ago, a 19-year-old woman accused Bryant of sexual assault. Bryant claims he's innocent.
A state of emergency tonight in Arizona. A massive wildfire is burning out of control in the Fort Apache reservation. Nearly 6, 000 acres have been burned. Thousands have been evacuated.
Blazing heat continues to bake much of the western part of the country. Temperatures have soared into the 100s, putting a strain on the area's water supply.
Disturbing news tonight about 15 passenger vans that churches, schools and businesses use every day. But new tests show that these vans are prone to rollover accidents.
Kathleen Koch has the story from Washington.
(BEGIN VIDEOTAPE) KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): The 2001 crashes in Texas and North Carolina that left five dead were sadly similar. Both 15-passenger church vans, loaded with mostly unbelted passengers, both had blowouts. Federal investigators say the pictures tell the story.
SHANE LACK, NTSB: The blowout occurs about right now. The vehicle begins to veer to the left.
KOCH: A simulation of the Texas crash.
LACK: As you can see, the driver must react to these changes in handling very quickly and precisely, or risk losing control.
KOCH: But in another NTSB test, even a trained driver who knew his tire was about to go, couldn't control the vehicle.
DENNIS COLLINS, NTSB: There is the tire blowout and tread separation. And as you can see, the driver clearly exceeds his lane.
KOCH: So the NTSB has recommended all drivers of 15-passenger vans have special training and be licensed to operate them.
ELLEN ENGLEMAN, CHMN., NTSB: We clearly identify that there are items such as braking, steering, the loss of control issue that's really important for a driver to understand.
KOCH: The NTSB also showed simulations of how passengers inside the Texas van were tossed about. It recommended automakers put shoulder belts in all 15-passenger vans, and redesign the vehicles to prevent roof crush.
The aunt of the 14-year-old girl killed in the North Carolina accident says, it's about time.
BRIDGET HELMS, VICTIM'S AUNT: If they're not going to make the necessary changes to make the vehicles safe, then children and groups, anyone, should not be transported in them.
KOCH: Dodge no longer makes 15-passenger vans like the ones in the two fatal accidents. Automakers Ford and General Motors say their 15-passenger vans are safe, though General Motors announced in May it was adding stability enhancement systems on its vans starting in 2004.
Federal safety officials have warned drivers the last two summers that when fully loaded, the vans are three times more likely to roll over than a small van.
JOAN CLAYBROOK, FMR. NTHSA ADMINISTRATOR: If it's 15 people, which is what it's designed for, supposedly, then it's very susceptible to rollover. You take an evasive maneuver or one wheel goes off the edge of the road, these vehicles go out of control. It's virtually impossible to control after that.
(END VIDEOTAPE) KOCH: More than 420 people have died in 15-passenger van crashes since 1990. The U.S. Senate is so concerned that it is considering a measure to force the big vans to meet the very same crash test and rollover standards the passenger cars do -- Jan.
HOPKINS: Kathleen, there is still a half a million of them on the road. If you own one, what should you do?
KOCH: Couple of things.
Check tire pressure. Tires are much more likely to blow out when the pressure is low and that's when rollovers often occur.
Make sure every occupant is belted in these crashes, Most people weren't. And even if the van only has a lap belt, that will keep you from being ejected from the vehicle.
And then finally, check with your local AAA, your local state motor vehicle registration to see if they're yet offering any of these special classes, special training that drivers should have in order to drive these vehicles safely.
HOPKINS: Kathleen Koch in Washington, thanks.
And still to come, danger lurking online. Sexual predators targeting your children. Kitty Pilgrim will have that report.
And then, battling big media. Congress takes on the FCC's media ownership rules. Senator Byron Dorgan is among those leading the charge, and he'll join us.
(COMMERCIAL BREAK)
HOPKINS: A group of senators is taking on the Federal Communication Commission's new rules on media ownership. The senators say that allowing media giants to own more will take away viewing options for the public. Senator Byron Dorgan is leading the bipartisan effort to pass a resolution overturning the rules. He joins us now from Capitol Hill.
And you have enough signatures to bring it before the Senate. Yes?
SEN. BYRON DORGAN (D), NORTH DAKOTA: I do. I have enough signatures that will give it -- give it what is called an expedited procedure. So we're guaranteed a vote in the Senate to try to overturn these FCC rules.
And if I might just mention to you, what the FCC has done is to stand logic on its head. Their rules would allow one company in the largest cities in the country to own the newspaper, three television stations, eight radio stations and the cable company. I don't think that's moving in the right direction.
HOPKINS: What are you hearing from your fellow senators? Why are they concerned about this and why do they want to vote on it? DORGAN: Well, the whole notion of, particularly in broadcast, television and radio, is to license the airwaves. The airwaves belong to the American people. License them for use. But part of that licensing is about localism and diversity and competition, and what the FCC is doing is to say, you know, the sky is the limit, buy who you want, concentrate as you will.
We have one company now owning 1,200 radio stations in the country. And the same is happening with television stations. And now the FCC says, oh, by the way, you know, Katie by the door, the newspapers can get involved as well. And I just think people here are very concerned that this aggressive orgy of mergers and acquisitions and this concentration is not healthy for our country.
HOPKINS: What do you think it does?
DORGAN: What do you mean, what does it do?
HOPKINS: The combination of ownership in just a few hands. What does it do to the viewing public?
DORGAN: Well, it's interesting. The big broadcasting companies and others who want this and who are seeing more and more concentrations through their acquisitions, they say, well, what we have are many, many more voices. What you have are more voices by a single ventriloquist. They say, well, you've got all these cable channels. You know what? The top cable channels are owned by the same big broadcasting companies.
They say, well, but now you have the Internet, you have all these new sites on the Internet. Most of the new sites on the Internet are owned by the same companies. I just think it's unhealthy. Most of my colleagues do as well. I think this country is best served by a broad-based ownership of its broadcast and newspaper opportunities, and I -- the FCC rule moves in exactly the opposite direction.
HOPKINS: You're from North Dakota. Has this impacted your state?
DORGAN: Meinhot (ph), North Dakota, a town of about 40,000 or 50,000 people has six commercial radio stations, one religious and one public broadcast. All six of the commercial radio stations were bought by one company. All of them, owned by one company. At 2:00 in the morning, an anhydrous (ph) ammonia car exploded on the tracks, derailed, exploded. Deadly aroma, deadly gas, flood of gas covered the town and they called the radio station to try to put out an emergency bulletin. Guess what? Couldn't get an answer on the phone.
Does it affect these communities where one company buys up all the stations? You bet it does.
HOPKINS: You also are looking into government waste and spending for training of the TSA workers. What did you find out? They stayed in some pretty elaborate places.
DORGAN: They sure did. You know, the Transportation Security Agency is supposed to be making the skies safe for travelers and for the airlines. And in fact, they were out hiring recruiters. They hired a company that wasted hundreds of millions of dollars. They went to ski resorts, big hotels and spent a lot of money and spent seven weeks at one resort trying to hire 50 people. They've wasted a tragic amount of money.
HOPKINS: So what are you trying to do, get the money returned? There is the Waldorf-Astoria, that's one of the places they stayed.
DORGAN: What we're trying to do is find out who is accountable and see if we can't get them off the public payroll. I think there ought to be accountability in government. When people waste money, we have to understand who sanctioned it, who did it, and get them off the public payroll.
HOPKINS: Senator Byron Dorgan, Democrat from North Dakota, thanks for joining us.
DORGAN: Thanks a lot.
HOPKINS: In news around the world tonight, there is a meltdown in Europe. A mid summer heat wave has sent temperatures soaring across the continent. Readings have approached 100 degrees Fahrenheit. France and Italy have put curbs on water use.
Twelve-year-old Shevaun Pennington may be back home in Britain tonight. Shevaun ran away to Paris with a man that she met on the Internet. And Toby Studabaker is a 31-year-old former U.S. Marine. His brother said he thought the girl was much older.
(BEGIN VIDEO CLIP)
LEO STUDABAKER, TOBY'S BROTHER: I honestly do believe that he had honestly thought she was 19. Like I said, he wouldn't give any details, but I imagine -- he did say he'd saw the news. Probably heard as well. And she had finally told him how old she was. And he was pretty upset about it after he found out.
(END VIDEO CLIP)
HOPKINS: Stories like that one about the 12-year-old girl are every parent's nightmare. A young girl disappears after meeting an older man on the Internet. And as Kitty Pilgrim reports, the danger of Internet predators is far greater than many imagine.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Do you know who your child is chatting with? Maybe it's another 13-year-old girl. Maybe it's a predator.
The U.S. government cites a university study that found one in five young Internet users received unwanted sexual solicitation. Three percent of the children who were aggressively solicited were asked for further contact offline. Ninety-seven percent of the sexual solicitors were strangers. And the majority of the incidents happened when the child was using the home computer.
Two-thirds of the children who were solicited were girls. Some as young as 10. But most of the targets were 15 years old.
Chat rooms and instant messaging are common tools. Predators lie in wait, sometimes posing as other teenagers.
West District County District Attorney Jeanine Pirro says she was horrified by the phenomenon. She started a High Tech Crimes Bureau three years ago. So far there have been 72 cases, and of those which have been heard, there is a 100 percent conviction rate.
JEANINE PIRRO, WESTCHESTER COUNTY DISTRICT ATTORNEY: The children are Internet-savvy and sometimes parents are not. Pedophiles know this. They're cunning, they're devious, they're calculating. And they know that with time, they can go on that Internet and sooner or later, find someone who is trusting, some child who will share information about themselves and agree to meet.
PILGRIM: Nationally, the Department of Homeland Security heads the department that combines efforts of other groups, including the Customs Service, Postal Inspection Service, FBI, and works with the National Center for Missing and Exploited Children.
VICTOR CERDA, DEPARTMENT OF HOMELAND SECURITY: Operation Predator was just launched last week by Secretary Ridge, and what Operation Predator is is the Department of Homeland Security initiative as part of an overall administration plan to address child sex offenders, child predators.
(END VIDEOTAPE)
PILGRIM: Here is a tough statistic. Most parents don't know. According to the Crimes Against Children Research Center, only a quarter of the children who have sexual solicitation told the parent. And then, only 10 percent of the parents knew what to do about it and who to contact -- Jan.
HOPKINS: So who do you contact?
PILGRIM: Well, we did a little digging, and the number for the national contact number is with the department of -- 866 -- here it is. 866-DHS-2ICE. And that's the national number. If you have a problem, you should call that.
HOPKINS: Thanks, Kitty Pilgrim.
A reminder now to vote in tonight's poll, what worries you the most? North Korea, the U.S. deficit, media concentration or Internet predators. Cast your vote at cnn.com/lou.
We'll bring you preliminary results in just a few minutes.
Taxpayer will not have to foot the legal bill for the Whitewater investigation. Former President Clinton and Senator Hillary Rodham Clinton sought reimbursement for $3.5 million in attorney's fees. The court ruled the Whitewater land deal would likely have been investigated by the Justice Department even if an independent counsel had not been appointed.
When we return, it is a night for star gazing in Chicago. We'll go live to the All-Star Game and find out why this year's game will have a direct impact on the World Series.
(COMMERCIAL BREAK)
HOPKINS: Amazing pictures out of Fort Wayne, Indiana, tonight. High schooler Clayton Richard hit one out of the park during a local home run derby -- out of the park and right into the window of a passing Cadillac. Talk about an incredible shot. Clayton won the trophy, by the way.
Major league Baseball's home run derby last night was won by the Angel's Garrett Anderson. But the major contest is still ahead tonight, the All-Star Game, and Matt Morrison joins us now from Chicago with more -- Matt.
MATT MORRISON, CNN SPORTS CORRESPONDENT: Jan, a lot of fun on tap here. The game set to get under way in just about an hour.
And Major League Baseball has always been a family tradition. And there is no family that has better tradition in baseball than the Boone family. They are the first family to produce three generations of major leaguers, and two of them are playing in tonight's ball game, brother against brother, starting with Seattle Mariners second baseman Brett Boone. He is a reserve playing for the American League, playing in his third All-Star Game. And he'll be squaring off against his brother, Aaron Boone, the third baseman for the Cincinnati Reds, also a reserve, he on the National League squad.
Now Brett and Aaron are the sons of Bob Boone, the current Cincinnati Reds manager, but who was a star in his own right behind the dish in the '70s and '80s, an all-star during his Major League playing career. And all come from Ray Boone. And Ray Boone himself a two time all-star back in the mid '50s as an infielder. He is here at the All-Star festivities, as well as Jacob, the 4-year-old son of Brett Boone. You've got great-grandpa, running around with the 4- year-old grandson -- great-grandson at the festivities. But that might tucker out Ray Boone a little bit, but great-grandpa says he wouldn't miss it for the world.
(BEGIN VIDEO CLIP)
RAY BOONE, FORMER ALL STAR: First of all, he slept for 2.5 hours over there, and I got the stiffest back in the world today. It's hurting from holding his head on my lap and keeping him from falling off the bench and everything.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
AARON BOONE, CINCINNATI REDS: I know my grandpa is like a kid in a candy store being here, and, you know, family and baseball certainly been huge part of our lives and kind of what we think it's all about.
(END VIDEO CLIP)
BRETT BOONE, SEATTLE MARINES: I'm very proud of what my family has been able to accomplish. And, you know, I tried to take Jacob out here. He's still a little young for this. But he's only 4 and he's a little antsy. He wanted to go home. He wanted mommy all day. But I think it's a neat experience for him and it was neat for me having him here.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
MORRISON (on camera): Can it be four generations?
BOB BOONE, MANAGER, CINCINNATI REDS: Well, the only grandson is Jacob, Brett's son. There's an awful lot of pressure on him. I hope he doesn't come home some day and say I don't like baseball, I want to play the piano. So he's got a lot of pressure on him. I mean, it's building now.
(END VIDEO CLIP)
MORRISON: Well, if he grows up to learn to play the piano, if he grows up to learn to play the piano like Billy Joel -- well, then, I'm sure they'd be plenty proud of him as well.
Got to give a tip of the cap as well to the Bell family as well. They were the second three-generation Major League family. Gus Bell in his day; his son, Buddy Bell; and he's the father of current third baseman for the Philadelphia Phillies, David Cell. So we've got two sets of three-generation Major Leaguers. The Boone family well represented here. Again, Jan, with Aaron playing for the National League team and Brett playing for the American League team.
And as you touched on a little bit ago, this one means something, because the team that wins the All-Star game, will earn the home-field advantage in the World Series for that league. So a little extra on the line in the 74th Major League All-Star Game.
HOPKINS: But that's a bit controversial, isn't it?
MORRISON: Yes, it is, because the players say it's always been important to them to come out and perform well. And at the same time, there's never really been a set criteria for determining the home- field advantage in the World Series. So it's not like the All-Star game has never counted before to the players who participate. It's just a catchy phrase, let's put it that way. This year it counts.
HOPKINS: Well, and also if you have the home-field advantage, chances are you're going to win the World Series, right?
MORRISON: Well, it is an important advantage. That is for sure. Because I think 15-2, the last -- last 17 times there have been seven games of the World Series, the home team has won 15 times. So it is a significant home-field advantage. It is a significant outcome tonight should this year's World Series go to seven games.
HOPKINS: Matt Morrison, thanks for joining us from Chicago.
And when we return, the preliminary results of the poll tonight.
(COMMERCIAL BREAK)
HOPKINS: Let's check the preliminary results of tonight's poll. The question: "What worries you most? Twenty-four percent of you said North Korea; 57 percent said the U.S. deficit; 18 percent said media concentration; and 2 percent said Internet predators.
Finally tonight, the pandas at the National Zoo in Washington D.C. have been one of the most popular tourist attractions in the nation's capital for years. Today they were lucky for a woman from Singapore. She was the 5 millionth person to visit the zoo's Panda House. Susan Wie (ph) was awarded with a digital camera, a stuffed panda and several other gifts. Aren't they cute?
That's our show tonight. Thanks for joining us.
Tomorrow, we continue or series of special reports on bioengineered foods, the impact genetically modified food is having on American trade with the world.
For all of us here, good night from New York.
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Aired July 15, 2003 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is LOU DOBBS TONIGHT for Tuesday, July 15. Sitting in for Lou Dobbs, Jan Hopkins.
JAN HOPKINS, GUEST HOST: Good evening, everyone.
Tonight, parts of Texas are swamped by floodwater after Hurricane Claudette barreled into the coast today. The hurricane has now been downgraded to a tropical storm, but Claudette left behind a trail of destruction. The hurricane pounded coastal highways and tore boats from their moorings. Tides were at least 6 feet higher than normal. Buildings near the coast suffered severe damage, as wind speeds exceeded 80 miles an hour. Some gusts reached nearly 105 miles an hour. Palm trees and power lines were brought down by the wind.
Tonight, utility companies say about 75,000 people are without electricity. The Coast Guard rescued two fishermen after their boat sank near Galveston. The fishermen were covered in diesel oil, but otherwise unhurt.
To tell us how bad the damage is, I'm joined now John Zarrella, who is in Port Lavaca.
(CROSSTALK)
JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF: Hi, Jan.
Yes, we're in Port Lavaca. And it is -- as you mentioned, it's time for storm-weary Texans to start picking up the pieces of what this Category 1, a minimal hurricane, left behind. You can see here behind me the front structure on a couple of the historical buildings here that were built in 1910, came down during the storm. The brick fronts came down. Up at the top, it just came tumbling down, fortunately, no reports of any injuries.
We'll give you a look inside the buildings now as well. And you can see that all in here, much of the structure is down on the ground and damaged. And a lot of this is what you can see all over the Port Lavaca area. Now, when the storm made landfall, it came inland with winds sustained at 80 to 85 miles an hour, gusting to over 100 miles per hour. And there were trees down. There were power lines down everywhere.
There is flooding in parts of the coastal area of Texas. And, at one spot where we stopped, the roof was literally blown off of the front second-story porch on one home here in the Port Lavaca area. Now, up the coast a little ways, where they really suffered some of the storm surge damage, in the town of Surfside, much of that town, a lot of it, the roads and even some the homes, were completely under water.
So, while this storm was a Category 1 Hurricane, Jan, it certainly has left behind quite a mess along the coastal areas of Texas, central Texas, and all the way up to north Texas, for the residents here to pick up, no power -- a lot of power outages here, but from what we understand, at least to this point, no reports of any serious injuries and certainly no deaths at this point -- Jan.
HOPKINS: That's good news, John Zarrella in Port Lavaca, Texas.
In Galveston, waves surged over the seawall protecting the city. Water covered much of the island's west end, damaging homes and cars.
Haven Daley of our affiliate News 24 Houston joins me now live from Galveston -- Haven.
HAVEN DALEY, NEWS 24 HOUSTON REPORTER: Well, it's still windy here but in Galveston, but the island has apparently weathered the storm, not before Claudette left her mark, however, with some fairly substantial damage, especially focused on the island's west end.
(BEGIN VIDEOTAPE)
DALEY (voice-over): The sign outside the local movie theater reduced to rubble. And the damage on the west end looked like a scene from Hollywood.
DAN RICHARDSON, RESIDENT OF GALVESTON: It's very devastating. It's not what I thought was coming at all. It's not what I thought. I thought I could get up this morning and the storm would be blowing over, because I've been out here through many storms, but not one like this one.
DALEY: Police tried to keep sightseers off the roads, many of which were flooded. And roads not covered by water were covered by debris. Driving through it felt like maneuvering through an obstacle course.
CATHY YOW, RESIDENT JAMAICA BEACH: This is people's houses. And I'm sorry that -- we haven't had a storm in so long that a lot of people don't understand that everything underneath floats away.
DALEY: Before the storm passed, crews were already restoring power and clearing roads. And residents began the difficult task of assessing damage and cleaning up what Claudette left behind.
(END VIDEOTAPE)
DALEY: Now, the Galveston City Council has just issued a local state of emergency to help pay for all this mess. The good news in all this? No serious injuries reported -- back to you.
HOPKINS: Thanks, Haven Daley of our affiliate News 24 Houston live from Galveston. And turning now to a growing diplomat storm, North Korea says it has finished converting spent fuel rods into material to make nuclear bombs. The White House says it's trying to find out if the claim is true. President Bush is on record as saying he will not tolerate a nuclear-armed North Korea.
White House correspondent Suzanne Malveaux joins us now -- Suzanne.
SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Jan, for a week, President Bush has been answering charges that the White House exaggerated intelligence about Iraq's weapons programs to justify the war, now the White House again on the defensive about another member of the so-called axis of evil, this time North Korea.
It was last week that North Korean officials told the State Department that they had produced enough plutonium to make a half- dozen nuclear bombs, moving it one step closer to becoming a nuclear power and a threat. Now, the administration is working to confirm whether or not these claims are actually true, at the same time, defending their strategy, their policy, of using international diplomacy to keep North Korea in line.
(BEGIN VIDEO CLIP)
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: Reprocessing is a serious concern. And it's something that we will work to address. We seek a diplomatic solution. But, as we move forward, we will remain in close contact with South Korea, Japan, China and others to address this and find a solution.
(END VIDEO CLIP)
MALVEAUX: But, Jan, some national security experts are calling this diplomatic effort a failure. We heard from former Secretary of Defense William Perry in "The Washington Post" this morning in an interview saying -- and I am quoting here -- "I have thought for some months that if the North Koreans moved toward processing spent fuel rods, then we're on a path toward war."
Now, one of the things, Jan, that the Bush administration is considering, however, is looking at setting up an international embargo, that this would basically intercept those ships that are carrying illegal drugs and weapons that are exported out of North Korea, this trying to send a message that they would be damaged politically as well as economically -- Jan.
HOPKINS: Suzanne Malveaux at the White House, thank you.
And later in the show, I'll be talking about that nuclear standoff with James Lilley. He's a former ambassador to South Korea and China. He's now a senior fellow at the American Enterprise Institute.
The U.S. administrator in Iraq, Paul Bremer, today said that coalition troops will stay in Iraq no longer than necessary. Part of the 3rd Infantry Division is already on its way home. And today, there was good news for the rest of the division after its tour of duty in Iraq was extended.
Senior Pentagon correspondent Jamie McIntyre has more -- Jamie.
JAMIE MCINTYRE, CNN MILITARY AFFAIRS CORRESPONDENT: Well, Jan, there is no question that members of the 3rd Infantry Division were bitterly disappointed when the Pentagon pulled back from its promise to have all of them home in the next two months. Just listen to this sergeant, who was one of the first soldiers into Baghdad and is now enduring the daily guerrilla war.
(BEGIN VIDEO CLIP)
SGT. ERIC WRIGHT, U.S. ARMY; The guys are hanging in there. And they do their job. But you can't help but notice the looks on their face, just like they're exhausted. They're mentally and physically exhausted, to the point that -- some of hoped that they would get -- so that they could home.
(END VIDEO CLIP)
MCINTYRE: After announcing last week that all three brigades of the 3rd Infantry Division would be coming home, one this month, one next month, one in September, the Pentagon has said, not so fast.
Now, the commanding general of the 3rd Infantry Division, Major General Buford Blount, said this in an e-mail to the families. He said, "Due to the uncertainty of the situation in Iraq and the recent increases in attacks on the coalition forces, a decision was made at the highest levels to maintain the current force level here." He said, "That means part of the 3rd I.D. will be staying for a while longer." He said -- quote -- "I wish I could tell you how long that is, before everything I have told you before has changed."
Meanwhile, here is what General Blount said in Iraq.
(BEGIN VIDEO CLIP)
MAJOR GEN. BUFORD BLOUNT, COMMANDER, 3RD INFANTRY DIVISION: Everybody is ready to go home. I'm ready to go home very much. These soldiers have been here about 10 months, a little over 10 months now. They trained six months hard in the desert, doing hard, hot work. And they're still doing a good job here. Morale is good. And we're doing a lot to try to work on the quality of life and trying to get them out of here.
(END VIDEO CLIP)
MCINTYRE: Now, the U.S. Central Command today issued a statement as well, saying that it remains committed to the complete return of the 3rd Infantry Division to its home station by September, pending international or U.S. replacement units.
But it also added a caveat. As always, it said, the security situation could affect deployments and redeployments. What does it all mean? Well, the Pentagon today refused to characterize the return of the 3rd I.D. as being delayed and saying it will continue to try to get them home by September. But, at this point, that remains a goal more than a promise -- Jan.
HOPKINS: So, Jamie, from the Pentagon's point of view, how do you gauge morale as a result of all of this?
MCINTYRE: Well, it's very hard to maintain morale for these kinds of troops, who are, as you heard, exhausted and hoping to come home. What they need to do, though, is figure out how many international troops they're going to be able to plug into the situation, which U.S. troops it can send. And, right now, with the continuing level of violence, they just don't feel comfortable letting all of the troops go.
HOPKINS: Jamie McIntyre at the Pentagon, thanks.
And still ahead tonight: a threat to economic recovery, rising red ink. Is deficit spending a short-term positive or a long-term negative for the economy? Peter Viles will report.
And later: our series of special reports, "Food Fight," continues. Genetically modified food is more and more common, but is it safe? Casey Wian has that report coming up.
(COMMERCIAL BREAK)
HOPKINS: Stocks fell slightly today. Investors seemed hypnotized by congressional testimony from Federal Reserve Chairman Alan Greenspan. He downplayed the danger of deflation, predicted stronger growth ahead, but warned that the Fed is ready to cut rates again if necessary.
Dow industrials fell about 48 points. The Nasdaq lost 1 1/2. The S&P 500 was down 3.
Christine Romans joins us now with the market -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Well, the big Greenspan reaction was over in the bond market, where prices tanked and 10-year yields soared to 10-week highs, the 10-year yield about 3.91 percent now.
In stocks, more than two stocks fell for each that rose. And volume was about 1.5 billion shares, a little bit more than yesterday. But the fireworks really exploded after the close. Intel earnings came out. Net earnings doubled from a year ago, revenue up 1 percent over last quarter and up 8 percent vs. a year ago. That stock is higher right now. And Sears announced Citigroup will buy its credit card portfolio for $6 billion in cash, that deal expected to close by the end of the year. Sears shares were up strongly after-hours as well.
Now, during the session, Merrill soared more than $2 on a strong earnings report. Altria dropped sharply and was the most active stock of the Big Board on worries it will have to fork over more bond, as it appeals an Illinois ruling. And Boeing said it will take a $1 billion charge in the second quarter because of its weak satellite business.
Now, the banks continue to turn in earnings boosted by mortgage business, Wells Fargo among them. And it hinted it may raise its dividend as well. Also, Mirant was absent from the most-active list of the Big Board for the first time in several days. The New York Stock Exchange has suspended trading of Mirant now that the company has filed for bankruptcy -- Jan.
HOPKINS: That happens.
ROMANS: Sure.
HOPKINS: Thanks, Christine.
The White House says that the federal government is deeper in debt than it thought. The budget deficit is now expected to hit a record $455 billion this year.
That is a 50 percent increase from the Bush administration's last estimate and the starting point for political argument, as Peter Viles reports.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): The Bush administration acknowledging the federal deficit is ballooning. Back in February, the administration predicted deficits of $304 billion this year and $1.4 trillion over six years. Today, both numbers skyrocketed, a $455 billion deficit this year, $1.9 trillion over six years, the administration blaming a sluggish economy and costs of war and defending its repeated tax cuts.
JOSH BOLTEN, OMB DIRECTOR: The tax cuts proposed by the president and enacted by Congress are not the problem. They are, and will be, part of the solution.
VILES: Democrats, however, seized on the numbers to slam the president's economic policies.
SEN. KENT CONRAD (D), NORTH DAKOTA: The president has told us over and over not to worry, that his fiscal plan was on track. Well, this is a train that's off the track.
VILES: Economists generally view rising deficits as a short-term positive, goosing the economy, but as a long-term threat, tending to drive up interest rates.
WILLIAM DUDLEY, GOLDMAN SACHS: The problem, in terms of the budget deficit outlook, is not what's happening in 2003, 2004, but the damage that's been done to the long-term budget outlook. The reality is that some of the tax cuts that the administration has proposed actually get bigger over time and probably will do pretty big damage to the budget as you look out 10 years.
VILES: On Capitol Hill, Alan Greenspan cut back his projection for economic growth this year by almost a full percentage point and lectured Congress to get spending under control.
ALAN GREENSPAN, FEDERAL RESERVE CHAIRMAN: We've allowed that to slip. And I think that that will be creating major problems for us in the future, unless we turn it around.
(END VIDEOTAPE)
HOPKINS: On the question of whether this is a record deficit, it depends on how you measure it. In absolute dollar terms, it's easily the biggest deficit ever. But as a percentage of the economy, it is not close. This is about 4 percent of GDP. Deficits peaked at 6 percent of GDP in the early '80s.
The deficit is the topic of "Tonight's Thought." Quote: "The debt is like a crazy aunt we keep down in the basement. All the neighbors know she is there, but nobody wants to talk about her." That, of course, was from Ross Perot talking about the budget deficit in the 1992 presidential debate.
Coming up: "Food Fight." How safe is the food you eat? Our series of special reports on genetically modified food continues.
Also ahead: the latest nuclear threat. North Korea says it's one step closer to having nuclear weapons. Former Ambassador to South Korea James Lilley will be our guest.
And then: Many of you wrote in about childhood obesity and school vending machines. We'll read your e-mails next.
(COMMERCIAL BREAK)
HOPKINS: Tonight, we continue our series of special reports on genetically modified foods. As we reported yesterday, many crops grown in this country are bioengineered. But are they safe?
Casey Wian has the report from Madera County, California.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Roger Schuh grows cotton that's genetically modified to be immune to the weed killer round-up. He no longer needs to spray several different herbicides or manually weed his 800 acres of cotton. The result: higher crop yields, less work, and lower costs.
ROGER SCHUH, PARTNER, TRIPLE S FARMS: Less input, same -- or better bottom line. Hard to beat.
WIAN: Other than seeds dyed blue for identification, genetically modified cotton is indistinguishable from the conventional crop.
SCHUH: That's where it will split open. The cotton will expand and puff out.
WIAN: The blooms become clothing. The seeds become high-protein dairy cattle feed. Indirectly, much of the nation's milk is the byproduct of bioengineered crops. While Schuh believes that's safe, even he has concerns about growing G.M. crops for direct human consumption.
SCHUH: I'd want to make certain that the science was sound, that it was proven there was no side-effect. If the end user, the consumer, was uncomfortable with the product, I'd still be hesitant to grow it, because I've got to make sure that what I produce, someone in the end is going to purchase it.
WIAN: Despite the growing organic food business and protests of anti-G.M. food groups, Americans already eats lots of genetically modified food, mostly soybeans and corn.
JIM MARYANSKI, FOOD & DRUG ADMINISTRATION: We have looked very carefully at this technology and at the specific products that have been developed to date. And we're very confident that these foods are as safe as other foods in the marketplace.
JUDITH KJELSTROM, DIRECTOR, U.C. DAVIS BIOTECH PROGRAM: We do have a very vocal activist group that has a belief that anything that technology drives is unnatural, and, therefore, unsafe. I don't know if we can ever convince that group of its safety.
WIAN: The International Council for Science concludes in a recent study that currently available genetically modified foods are safe to eat and there is no evidence of any ill effects from the consumption of foods containing genetically modified ingredients. The ICS also notes potential health benefits, such as vitamin-enriched grains or nonallergenic peanuts.
(on camera): The scientists say it's too early to tell what genetically modified crops will do to the environment. Here in the San Joaquin Valley, home to some of the nation's dirtiest air, the environmental impact so far has been positive.
(voice-over): That's because farmers burn less fuel and spray fewer chemicals. Nationwide, U.C. Davis estimates, G.M. foods have eliminated 46 million pounds of pesticides from the environment. Another safety or national security issue is the U.S. food supply, as the population grows and the number of farmers shrinks.
SCHUH: We don't want to be dependent on foreign oil. I think it would be just as detrimental to be dependent on a foreign source for food. I think GMO commodities will help give us that advantage, that edge, to keep us there.
WIAN: Casey Wian, CNN, Madera County, California.
(END VIDEOTAPE)
HOPKINS: Tomorrow, we continue our series of special reports on bioengineered food with a look at the impact the foods are having on international trade.
Many of you wrote about our continuing series of special reports, "Food Fight." Deda Cherry of Santa Rosa, California, wrote: "I was absolutely furious when I discovered that I had unknowingly been consuming products that had been genetically modified. I now have a very hard time shopping for food. And many items I use to buy, I won't even touch."
Richard Utt from Loma Linda, California, wrote: "People are funny. We gorge on grease, junk food and cholesterol and then, when better grains are developed by scientists, we're alarmed for our health."
Michelle from Michigan wrote about our report last on vending machines in schools. She said: "The obesity of our children has nothing to do with those machines. Parents have less money and work more hours than ever before Unfortunately, even families with two working adults have a hard time affording juice, rather than a two- liter bottle of soda pop."
And Paul Anderson of Rockledge, Florida, said: "The problem is that we refuse as parents to accept the responsibility for failing to train and educate our children as to what they can or cannot eat."
We love hearing from you. You can e-mail us your thoughts at LouDobbs@CNN.com.
Coming up: An alarming admission from North Korea puts the world on notice. Former Ambassador to South Korea James Lilley will join us to talk about North Korea's nuclear ambition.
Also tonight: danger on four wheels, a van often used by churches and schools under investigation. Kathleen Koch reports.
And are your children safe online? Kitty Pilgrim with a special report on Internet predators and their unsuspecting young targets.
(COMMERCIAL BREAK)
HOPKINS: Returning now to one of our top stories, the White House says that North Korea now claims it has produced enough plutonium to make nuclear bombs. The Bush administration is calling the development serious.
Joining me now with more on the nuclear standoff with North Korea is the former Ambassador to South Korea James Lilley. He's now a senior fellow at the American Enterprise Institute.
Ambassador, is there any reason to believe that North Korea is not telling the truth that they are moving ahead with a nuclear weapons program?
JAMES LILLEY, FORMER U.S. AMBASSADOR TO SOUTH KOREA: Yes, of course there is, because we don't have independent verification that they're doing it.
We do have some indications, namely the fumes which we detected, the high-explosive tests they carried out. And we said as long ago as 10 years that they had enough plutonium for about two bombs. So there is really nothing new, except they're going to reprocess the rods and try and make more bombs. But it sounds to me like a threat in order to get bilateral talks going, a nonaggression pact, a great aid package, all the things they desire, by using the same old tactics they used so successfully in the 1990s.
HOPKINS: Are they getting more desperate?
LILLEY: Yes, they are. They're in very, very bad shape.
Economically, we've cut off the oil. The Chinese, I believe, have cut back their supplies a bit. The South Koreans aren't coming in. The Japanese have stopped. They're really in very, very tough shape economically.
HOPKINS: But how do you deal with them? How does the Bush administration deal with them? Because this is definitely a tinderbox.
LILLEY: Well, it's not a tinderbox. You're dealing with this problem. You've been dealing with it for a long, long time. It's all filled with threats.
You deal with them by careful alliance management, cohesion among our friends and allies, the buildings of incentives and disincentives for North Korea to do the thing that we choose for them to do or not do the things we don't want them to do, because there will be consequences. We're working with our friends and allies to get this. This is a very tough process. But I know my friends in State and Defense have been working around the clock to get this done. And I think they've made significant progress on it.
HOPKINS: What about the cohesion of the allies? Does everyone kind of agree with how to deal with North Korea?
LILLEY: That would be heaven on Earth, if that ever happened. It doesn't happen that way.
It's like herding cats. It's difficult. There's always an individual agenda. China has its agenda. South Korea has its. South Korea, I think, honestly believes that you can get them by economic incentive, drawing them in. China believes they have to be propped up, for reasons -- they don't want a failed state and a million refugees in Manchuria. Japan really goes along with us. They're trying to choke off some of their sources of illicit income. But gradually you're building up, I think, a cohesion on giving the North Koreans a very strong message.
We all agree that there should be no nuclear weapons on the peninsula. We agree that economic help, which they desperately need, will be tied in to that and that there will not be a preemptive strike against them. This talk about war, war, war, is what they talked about in '93 and '94. I don't hear this out of the current administration. I hear it out of the past administration.
HOPKINS: Now you were also ambassador to China. You say that China doesn't want refugees. What else does China not want?
LILLEY: China does not want other countries in Asia, like Japan, South Korea and Taiwan, to get any kind of offensive missiles and nuclear weapons. They do not want to see that. They do not want to see ballistic missile defense.
They would like to see economic reform in North Korea because North Korea is a huge drain on them. So they would like to see North Korea reform its economy. They did it in 1978. They also would like to see North Korea get rid of those weapons of mass destruction and take its huge commitment to the military budget and do what China did -- put it into the economy to build their country. The North Koreans have done every sappy thing imaginable other than the right thing on this.
HOPKINS: Is there a military solution?
LILLEY: No. There is not. You need the military to deter the North Koreans from doing anything irrational. Our military is strong enough to do that. You need military in limited ways for interdiction of any attempt that they have towards proliferation of weapons into the Middle East. Other than that, I think the military should not be used in any kind of action against North Korea.
HOPKINS: No kind of strike against....
LILLEY: Absolutely not. That's '93-'94 talk. That's what they talked about then. They weren't going to do it then. They used it as an instrument of psychological warfare against the North. It didn't particularly work well because they ended up paying off the North with huge sums of money for food and oil and reactors and all this sort of thing. The North Koreans made out like bandits and they want to do it all over again.
HOPKINS: How is this different from Iraq?
LILLEY: Oh, it's very different from Iraq. This is a country entirely different from Iraq. It's a sort of a mixture of the worst aspects of Korean feudalistic control and Marxist Leninist dingbat economics. It gets all of the wrong things and puts them together. It has a very oppressive system. It has a culture of thousands of years of emperor control. It is isolated. It has no resources. It's desperately poor, unlike Iraq. It doesn't have the Arab culture. It's homogeneous.
It's developed this total close-off from the world. They actually tell their people that their dear leader, Kim Jong Il, was born in a place that he never was born in. They give him attributes he never had. It's a city -- it's a whole situation built on lies.
HOPKINS: But is there any possibility of war as a result of this escalation?
LILLEY: I think it's absolutely important that you don't have that happen. You make it very clear to the North Koreans that if they try anything militarily, they'll disappear. And I think even President Clinton told them that in 1993. There is no question, there is no military option in their scenario, and we certainly don't have one, I believe.
HOPKINS: James Lilley, former ambassador to South Korea, now with the American Enterprise Institute, thanks for joining us.
LILLEY: Thank you.
HOPKINS: Turning now to tonight's quote on the issue of North Korea, one prominent U.S. senator today attacked the president and said: "All of America's credibility is at stake. When the president of the United States says we are facing a real serious worldwide challenge because of nuclear issues, he has to be believed around the world." -- endquote. That from Massachusetts Senator Ted Kennedy.
That brings us to tonight's poll: "What worries you the most? North Korea, the U.S. deficit, media concentration or Internet predators?" Cast your vote at cnn.com/lou and we'll bring you preliminary results later in the show.
Now the final results of yesterday's poll. We asked: "Would you knowingly eat genetically modified food?" Forty-three percent of you said yes and 57 percent said no.
In "News Across America" tonight, another worker from the Lockheed Martin plant in Mississippi has died from her injuries after the shooting there last week. That brings the death toll from the attack to seven people, including the shooter.
The search for a sexual predator continues in West Virginia tonight. The suspect was caught on videotape in a Target store. Police say he sexually assaulted an 11-year-old girl after convincing her he was a security guard. A similar incident in Kentucky is also being investigated.
Colorado prosecutors are looking at evidence from the state's crime lab, that they still have not charged Kobe Bryant with anything. A week and a half ago, a 19-year-old woman accused Bryant of sexual assault. Bryant claims he's innocent.
A state of emergency tonight in Arizona. A massive wildfire is burning out of control in the Fort Apache reservation. Nearly 6, 000 acres have been burned. Thousands have been evacuated.
Blazing heat continues to bake much of the western part of the country. Temperatures have soared into the 100s, putting a strain on the area's water supply.
Disturbing news tonight about 15 passenger vans that churches, schools and businesses use every day. But new tests show that these vans are prone to rollover accidents.
Kathleen Koch has the story from Washington.
(BEGIN VIDEOTAPE) KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): The 2001 crashes in Texas and North Carolina that left five dead were sadly similar. Both 15-passenger church vans, loaded with mostly unbelted passengers, both had blowouts. Federal investigators say the pictures tell the story.
SHANE LACK, NTSB: The blowout occurs about right now. The vehicle begins to veer to the left.
KOCH: A simulation of the Texas crash.
LACK: As you can see, the driver must react to these changes in handling very quickly and precisely, or risk losing control.
KOCH: But in another NTSB test, even a trained driver who knew his tire was about to go, couldn't control the vehicle.
DENNIS COLLINS, NTSB: There is the tire blowout and tread separation. And as you can see, the driver clearly exceeds his lane.
KOCH: So the NTSB has recommended all drivers of 15-passenger vans have special training and be licensed to operate them.
ELLEN ENGLEMAN, CHMN., NTSB: We clearly identify that there are items such as braking, steering, the loss of control issue that's really important for a driver to understand.
KOCH: The NTSB also showed simulations of how passengers inside the Texas van were tossed about. It recommended automakers put shoulder belts in all 15-passenger vans, and redesign the vehicles to prevent roof crush.
The aunt of the 14-year-old girl killed in the North Carolina accident says, it's about time.
BRIDGET HELMS, VICTIM'S AUNT: If they're not going to make the necessary changes to make the vehicles safe, then children and groups, anyone, should not be transported in them.
KOCH: Dodge no longer makes 15-passenger vans like the ones in the two fatal accidents. Automakers Ford and General Motors say their 15-passenger vans are safe, though General Motors announced in May it was adding stability enhancement systems on its vans starting in 2004.
Federal safety officials have warned drivers the last two summers that when fully loaded, the vans are three times more likely to roll over than a small van.
JOAN CLAYBROOK, FMR. NTHSA ADMINISTRATOR: If it's 15 people, which is what it's designed for, supposedly, then it's very susceptible to rollover. You take an evasive maneuver or one wheel goes off the edge of the road, these vehicles go out of control. It's virtually impossible to control after that.
(END VIDEOTAPE) KOCH: More than 420 people have died in 15-passenger van crashes since 1990. The U.S. Senate is so concerned that it is considering a measure to force the big vans to meet the very same crash test and rollover standards the passenger cars do -- Jan.
HOPKINS: Kathleen, there is still a half a million of them on the road. If you own one, what should you do?
KOCH: Couple of things.
Check tire pressure. Tires are much more likely to blow out when the pressure is low and that's when rollovers often occur.
Make sure every occupant is belted in these crashes, Most people weren't. And even if the van only has a lap belt, that will keep you from being ejected from the vehicle.
And then finally, check with your local AAA, your local state motor vehicle registration to see if they're yet offering any of these special classes, special training that drivers should have in order to drive these vehicles safely.
HOPKINS: Kathleen Koch in Washington, thanks.
And still to come, danger lurking online. Sexual predators targeting your children. Kitty Pilgrim will have that report.
And then, battling big media. Congress takes on the FCC's media ownership rules. Senator Byron Dorgan is among those leading the charge, and he'll join us.
(COMMERCIAL BREAK)
HOPKINS: A group of senators is taking on the Federal Communication Commission's new rules on media ownership. The senators say that allowing media giants to own more will take away viewing options for the public. Senator Byron Dorgan is leading the bipartisan effort to pass a resolution overturning the rules. He joins us now from Capitol Hill.
And you have enough signatures to bring it before the Senate. Yes?
SEN. BYRON DORGAN (D), NORTH DAKOTA: I do. I have enough signatures that will give it -- give it what is called an expedited procedure. So we're guaranteed a vote in the Senate to try to overturn these FCC rules.
And if I might just mention to you, what the FCC has done is to stand logic on its head. Their rules would allow one company in the largest cities in the country to own the newspaper, three television stations, eight radio stations and the cable company. I don't think that's moving in the right direction.
HOPKINS: What are you hearing from your fellow senators? Why are they concerned about this and why do they want to vote on it? DORGAN: Well, the whole notion of, particularly in broadcast, television and radio, is to license the airwaves. The airwaves belong to the American people. License them for use. But part of that licensing is about localism and diversity and competition, and what the FCC is doing is to say, you know, the sky is the limit, buy who you want, concentrate as you will.
We have one company now owning 1,200 radio stations in the country. And the same is happening with television stations. And now the FCC says, oh, by the way, you know, Katie by the door, the newspapers can get involved as well. And I just think people here are very concerned that this aggressive orgy of mergers and acquisitions and this concentration is not healthy for our country.
HOPKINS: What do you think it does?
DORGAN: What do you mean, what does it do?
HOPKINS: The combination of ownership in just a few hands. What does it do to the viewing public?
DORGAN: Well, it's interesting. The big broadcasting companies and others who want this and who are seeing more and more concentrations through their acquisitions, they say, well, what we have are many, many more voices. What you have are more voices by a single ventriloquist. They say, well, you've got all these cable channels. You know what? The top cable channels are owned by the same big broadcasting companies.
They say, well, but now you have the Internet, you have all these new sites on the Internet. Most of the new sites on the Internet are owned by the same companies. I just think it's unhealthy. Most of my colleagues do as well. I think this country is best served by a broad-based ownership of its broadcast and newspaper opportunities, and I -- the FCC rule moves in exactly the opposite direction.
HOPKINS: You're from North Dakota. Has this impacted your state?
DORGAN: Meinhot (ph), North Dakota, a town of about 40,000 or 50,000 people has six commercial radio stations, one religious and one public broadcast. All six of the commercial radio stations were bought by one company. All of them, owned by one company. At 2:00 in the morning, an anhydrous (ph) ammonia car exploded on the tracks, derailed, exploded. Deadly aroma, deadly gas, flood of gas covered the town and they called the radio station to try to put out an emergency bulletin. Guess what? Couldn't get an answer on the phone.
Does it affect these communities where one company buys up all the stations? You bet it does.
HOPKINS: You also are looking into government waste and spending for training of the TSA workers. What did you find out? They stayed in some pretty elaborate places.
DORGAN: They sure did. You know, the Transportation Security Agency is supposed to be making the skies safe for travelers and for the airlines. And in fact, they were out hiring recruiters. They hired a company that wasted hundreds of millions of dollars. They went to ski resorts, big hotels and spent a lot of money and spent seven weeks at one resort trying to hire 50 people. They've wasted a tragic amount of money.
HOPKINS: So what are you trying to do, get the money returned? There is the Waldorf-Astoria, that's one of the places they stayed.
DORGAN: What we're trying to do is find out who is accountable and see if we can't get them off the public payroll. I think there ought to be accountability in government. When people waste money, we have to understand who sanctioned it, who did it, and get them off the public payroll.
HOPKINS: Senator Byron Dorgan, Democrat from North Dakota, thanks for joining us.
DORGAN: Thanks a lot.
HOPKINS: In news around the world tonight, there is a meltdown in Europe. A mid summer heat wave has sent temperatures soaring across the continent. Readings have approached 100 degrees Fahrenheit. France and Italy have put curbs on water use.
Twelve-year-old Shevaun Pennington may be back home in Britain tonight. Shevaun ran away to Paris with a man that she met on the Internet. And Toby Studabaker is a 31-year-old former U.S. Marine. His brother said he thought the girl was much older.
(BEGIN VIDEO CLIP)
LEO STUDABAKER, TOBY'S BROTHER: I honestly do believe that he had honestly thought she was 19. Like I said, he wouldn't give any details, but I imagine -- he did say he'd saw the news. Probably heard as well. And she had finally told him how old she was. And he was pretty upset about it after he found out.
(END VIDEO CLIP)
HOPKINS: Stories like that one about the 12-year-old girl are every parent's nightmare. A young girl disappears after meeting an older man on the Internet. And as Kitty Pilgrim reports, the danger of Internet predators is far greater than many imagine.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Do you know who your child is chatting with? Maybe it's another 13-year-old girl. Maybe it's a predator.
The U.S. government cites a university study that found one in five young Internet users received unwanted sexual solicitation. Three percent of the children who were aggressively solicited were asked for further contact offline. Ninety-seven percent of the sexual solicitors were strangers. And the majority of the incidents happened when the child was using the home computer.
Two-thirds of the children who were solicited were girls. Some as young as 10. But most of the targets were 15 years old.
Chat rooms and instant messaging are common tools. Predators lie in wait, sometimes posing as other teenagers.
West District County District Attorney Jeanine Pirro says she was horrified by the phenomenon. She started a High Tech Crimes Bureau three years ago. So far there have been 72 cases, and of those which have been heard, there is a 100 percent conviction rate.
JEANINE PIRRO, WESTCHESTER COUNTY DISTRICT ATTORNEY: The children are Internet-savvy and sometimes parents are not. Pedophiles know this. They're cunning, they're devious, they're calculating. And they know that with time, they can go on that Internet and sooner or later, find someone who is trusting, some child who will share information about themselves and agree to meet.
PILGRIM: Nationally, the Department of Homeland Security heads the department that combines efforts of other groups, including the Customs Service, Postal Inspection Service, FBI, and works with the National Center for Missing and Exploited Children.
VICTOR CERDA, DEPARTMENT OF HOMELAND SECURITY: Operation Predator was just launched last week by Secretary Ridge, and what Operation Predator is is the Department of Homeland Security initiative as part of an overall administration plan to address child sex offenders, child predators.
(END VIDEOTAPE)
PILGRIM: Here is a tough statistic. Most parents don't know. According to the Crimes Against Children Research Center, only a quarter of the children who have sexual solicitation told the parent. And then, only 10 percent of the parents knew what to do about it and who to contact -- Jan.
HOPKINS: So who do you contact?
PILGRIM: Well, we did a little digging, and the number for the national contact number is with the department of -- 866 -- here it is. 866-DHS-2ICE. And that's the national number. If you have a problem, you should call that.
HOPKINS: Thanks, Kitty Pilgrim.
A reminder now to vote in tonight's poll, what worries you the most? North Korea, the U.S. deficit, media concentration or Internet predators. Cast your vote at cnn.com/lou.
We'll bring you preliminary results in just a few minutes.
Taxpayer will not have to foot the legal bill for the Whitewater investigation. Former President Clinton and Senator Hillary Rodham Clinton sought reimbursement for $3.5 million in attorney's fees. The court ruled the Whitewater land deal would likely have been investigated by the Justice Department even if an independent counsel had not been appointed.
When we return, it is a night for star gazing in Chicago. We'll go live to the All-Star Game and find out why this year's game will have a direct impact on the World Series.
(COMMERCIAL BREAK)
HOPKINS: Amazing pictures out of Fort Wayne, Indiana, tonight. High schooler Clayton Richard hit one out of the park during a local home run derby -- out of the park and right into the window of a passing Cadillac. Talk about an incredible shot. Clayton won the trophy, by the way.
Major league Baseball's home run derby last night was won by the Angel's Garrett Anderson. But the major contest is still ahead tonight, the All-Star Game, and Matt Morrison joins us now from Chicago with more -- Matt.
MATT MORRISON, CNN SPORTS CORRESPONDENT: Jan, a lot of fun on tap here. The game set to get under way in just about an hour.
And Major League Baseball has always been a family tradition. And there is no family that has better tradition in baseball than the Boone family. They are the first family to produce three generations of major leaguers, and two of them are playing in tonight's ball game, brother against brother, starting with Seattle Mariners second baseman Brett Boone. He is a reserve playing for the American League, playing in his third All-Star Game. And he'll be squaring off against his brother, Aaron Boone, the third baseman for the Cincinnati Reds, also a reserve, he on the National League squad.
Now Brett and Aaron are the sons of Bob Boone, the current Cincinnati Reds manager, but who was a star in his own right behind the dish in the '70s and '80s, an all-star during his Major League playing career. And all come from Ray Boone. And Ray Boone himself a two time all-star back in the mid '50s as an infielder. He is here at the All-Star festivities, as well as Jacob, the 4-year-old son of Brett Boone. You've got great-grandpa, running around with the 4- year-old grandson -- great-grandson at the festivities. But that might tucker out Ray Boone a little bit, but great-grandpa says he wouldn't miss it for the world.
(BEGIN VIDEO CLIP)
RAY BOONE, FORMER ALL STAR: First of all, he slept for 2.5 hours over there, and I got the stiffest back in the world today. It's hurting from holding his head on my lap and keeping him from falling off the bench and everything.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
AARON BOONE, CINCINNATI REDS: I know my grandpa is like a kid in a candy store being here, and, you know, family and baseball certainly been huge part of our lives and kind of what we think it's all about.
(END VIDEO CLIP)
BRETT BOONE, SEATTLE MARINES: I'm very proud of what my family has been able to accomplish. And, you know, I tried to take Jacob out here. He's still a little young for this. But he's only 4 and he's a little antsy. He wanted to go home. He wanted mommy all day. But I think it's a neat experience for him and it was neat for me having him here.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
MORRISON (on camera): Can it be four generations?
BOB BOONE, MANAGER, CINCINNATI REDS: Well, the only grandson is Jacob, Brett's son. There's an awful lot of pressure on him. I hope he doesn't come home some day and say I don't like baseball, I want to play the piano. So he's got a lot of pressure on him. I mean, it's building now.
(END VIDEO CLIP)
MORRISON: Well, if he grows up to learn to play the piano, if he grows up to learn to play the piano like Billy Joel -- well, then, I'm sure they'd be plenty proud of him as well.
Got to give a tip of the cap as well to the Bell family as well. They were the second three-generation Major League family. Gus Bell in his day; his son, Buddy Bell; and he's the father of current third baseman for the Philadelphia Phillies, David Cell. So we've got two sets of three-generation Major Leaguers. The Boone family well represented here. Again, Jan, with Aaron playing for the National League team and Brett playing for the American League team.
And as you touched on a little bit ago, this one means something, because the team that wins the All-Star game, will earn the home-field advantage in the World Series for that league. So a little extra on the line in the 74th Major League All-Star Game.
HOPKINS: But that's a bit controversial, isn't it?
MORRISON: Yes, it is, because the players say it's always been important to them to come out and perform well. And at the same time, there's never really been a set criteria for determining the home- field advantage in the World Series. So it's not like the All-Star game has never counted before to the players who participate. It's just a catchy phrase, let's put it that way. This year it counts.
HOPKINS: Well, and also if you have the home-field advantage, chances are you're going to win the World Series, right?
MORRISON: Well, it is an important advantage. That is for sure. Because I think 15-2, the last -- last 17 times there have been seven games of the World Series, the home team has won 15 times. So it is a significant home-field advantage. It is a significant outcome tonight should this year's World Series go to seven games.
HOPKINS: Matt Morrison, thanks for joining us from Chicago.
And when we return, the preliminary results of the poll tonight.
(COMMERCIAL BREAK)
HOPKINS: Let's check the preliminary results of tonight's poll. The question: "What worries you most? Twenty-four percent of you said North Korea; 57 percent said the U.S. deficit; 18 percent said media concentration; and 2 percent said Internet predators.
Finally tonight, the pandas at the National Zoo in Washington D.C. have been one of the most popular tourist attractions in the nation's capital for years. Today they were lucky for a woman from Singapore. She was the 5 millionth person to visit the zoo's Panda House. Susan Wie (ph) was awarded with a digital camera, a stuffed panda and several other gifts. Aren't they cute?
That's our show tonight. Thanks for joining us.
Tomorrow, we continue or series of special reports on bioengineered foods, the impact genetically modified food is having on American trade with the world.
For all of us here, good night from New York.
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