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Iraq a Danger Zone for Reporters; Insurgents Getting Creative with Bombs; Police Search for Missing University of Wisconsin Co-Ed; Tourists Flock to Trump Tower

Aired March 31, 2004 - 13:30   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.


KYRA PHILLIPS, CNN ANCHOR: Scott McClellan saying despite the attacks, no matter how cruel they get, the U.S. is not going to be intimidated by what's happening there. Because as you know, today was one of the deadliest days this year for the coalition in Iraq.
Here to offer unique perspective, our Baghdad bureau chief, Jane Arraf.

You know this area of Fallujah very well. When you see what happens there. Kind of put into perspective for us -- it's a bit of dilemma, isn't it, with regard to your safety, going there and having to cover what happens there?

JANE ARRAF, CNN CORRESPONDENT: It's a huge dilemma, Kyra, not just for western journalists but for Arab ones, as well. I mean, we've got to cover this. It's essential. But at the same time, you've got to stay alive to cover that story.

And we have not escaped strategy. We've lost two people. Other news organizations have lost people, as well.

And it is quite a dangerous place, perhaps more dangerous than other places. Americans refer to it as the Wild West in a sense. So the challenge, the dilemma, is really to keep an eye on what's going on there and in other places like that and still not be killed doing it.

PHILLIPS: And even some of the other journalists you know, that I guess you could say are a little rough around the edges, that have even gone into that area have even said to you that when they have gone, they haven't even sometimes been able to tell their organization. I mean, this is how...

ARRAF: There are all sorts of ways of trying to figure out exactly how you're going to cover that story. Any journalist who's there desperately wants to find out what's going on.

In a place like Fallujah, you really want to explore what is it about this place that makes it so unique, that makes this violence keep happening?

I was there a few months ago and it was extraordinary, the extent of anti-American sentiment there that perhaps you don't get in other places in Iraq. PHILLIPS: Give us some examples of that.

ARRAF: Well, for instance, when the helicopter was shot down with the loss of American lives. Perfectly nice-seeming people invited us into their homes, gave us tea, and told us how they were really very sorry that more Americans hadn't been killed.

Now we have to understand, that's not the perception, that's not the sentiment of all Iraqis. And clearly there are a lot of Iraqis that either secretly or openly are glad American soldiers are there.

But in Fallujah, particularly, there is a very vocal minority, perhaps, of people who really passionately, desperately want the Americans out. And that's the kind of rage that we saw today in that incident.

PHILLIPS: And they want them out because of the number of misconceptions, or at least stereotypes. I mean, you were talking about this with us earlier today. Tell our viewers about what they think.

ARRAF: Well, some of what they think goes back to what they think in general of Americans, which is something that underpins a lot of places in the Middle East, and we have to be aware of this.

They think that the U.S. is simply supporting Israel, that it's come to Iraq to steal their oil. And when they see American soldiers in the streets, a lot of them do think that they're not American soldiers, that they are Israeli soldiers.

But we have to understand that this is a common sentiment and mistrust runs very deeply.

And I think we also have to remember, Kyra, that this is a town that really has a long memory. It's a town where bomb, a U.S. bomb hit the marketplace in 1991, killing more than 100 civilians. It's a town where...

PHILLIPS: That was a mistake, right?

ARRAF: It was a mistake. It's a town where the army opened fire on protesters after this last war. And things like that don't go away.

But at the same time, we have to understand, as well, this is not what's happening in the rest of Iraq, that all of this is punctuated by violence. But in those spaces in between, people are living normal live, just punctuated by these horrible incidents that keep happening.

PHILLIPS: Well, some might say, you know, this is only 30 miles from Baghdad, Fallujah. So if you can't get an area like Fallujah under control, how do you get the rest of the country under control?

ARRAF: Well, that's a good point. Geographically, on a map, it is not very far away. But in other terms, it is worlds away. Now, again, Fallujah is really interesting, because it is -- it poses the essential question, how do you reconstruct this country and maintain stability in a place where these were people, many of whom depended on Saddam, many of them were Ba'ath Party people, and now they've been cut out?

It's been made abundantly clear to them they have no future. They see the Kurds getting ahead. They see the Shias getting ahead. They have this historical animosity towards Americans. They have this suspicion of American motives.

And without making the economy better, and without being able to crack down on the insurgents better than they have, it really is going to be tough to improve that situation.

PHILLIPS: Well, we're continually amazed here when we watch you do your live shots and watch you travel throughout Iraq. We sure appreciate. We're glad you're here and thanks for your insight today.

ARRAF: Thanks, Kyra. Great to be here. Thank you.

PHILLIPS: All right. Our Jane Arraf, thanks so much.

Well, roadside bombs are often the weapon of choice among insurgents in Iraq. Jane's seen plenty of those.

CNN's Mike Brooks is here to talk about their tactics and show us what those bombs actually look like.

Mike, show us some of these unique pictures that you've received.

MIKE BROOKS, CNN ANALYST: Well, you know, Kyra, they were just talking about the bomb that killed the military personnel was one that was buried under the street.

But there are also other bombs that are used. We obtained a couple -- three pictures, showing a grenade that was placed under the carriage of a U.S. vehicle.

Some American personnel were jittery to get in this vehicle. They did a search, and they found this grenade hanging under the frame of the car.

Now, it's held on by wire. It's just not very sophisticated. The grenade has wire wrapped around it. It's attached to the frame, and there's another piece of wire running off to the side here. That's actually attached to the wheel.

If we can show the -- a little closer up of this grenade, you see how it's attached, and then the other wire goes off and it's attached to wheel of the vehicle.

So as the vehicle starts to turn it would pull the pin. The spoon would fly off. And you see it here on the wheel. The spoon would fly off. And the grenade would go off, either killing or seriously injuring the people inside. Again, not very sophisticated, but very, very effective.

PHILLIPS: Getting pretty advanced about where they're putting these explosives devices, right? I mean, you talked about, they're digging holes in the streets, covering them up. They're putting them in Coke cans.

We've heard a lot of the stories about how, I guess, creative these terrorists are coming with these explosives.

BROOKS: They're just using the imagination. Anything you can probably think of, they've probably already thought of it.

A source -- a federal law enforcement source who has been over there investigating some of these bombings told me that they're using dead animals along the side of the road. They're digging up the street, putting bombs down to remotely detonate them.

They're also using piles of rocks. He said you'll see soldiers going up and actually scooping up these piles of rocks to just get rid of any target of opportunity.

Whatever we can think of, that's what they're doing. And they're hiding them all over the place, Kyra. Donkey carts, Coke cans, whatever you can think of, whatever they can either remotely detonate or something they can run a wire from. That's what they're using.

PHILLIPS: Well, at the same time, intelligence is also getting better. You had a number of stories from your contacts there in Iraq about all the explosives that they're finding and materials to make them, right?

BROOKS: That's exactly right. A lot of Iraqis are coming in to the coalition, giving them intelligence, putting their life on the line by cooperating with the coalition, tell them where they can find explosive devices.

My source said that almost on a daily basis they're going out and recovering ordnance. These are bombs that were probably set to go off somewhere in the street or grenades like we've seen here.

They're taking military ordnance. They're breaking them down, and they're putting powders and everything else in barrels. And they're using these barrels as boosters for some of the larger bombs that we've seen.

But the cooperation, they say, from the Iraqis, citizens there in Baghdad, in the outlying areas, they said is just fantastic. And they're putting their life on the line by giving the information to the coalition.

PHILLIPS; Mike Brooks, thanks.

Straight ahead, they say they're happy together. Find out why the rest of the family just doesn't approve of this more than unconventional marriage. And Ms. Jackson in the morning. Can you imagine waking up to this? The concert you may have missed.

LIVE FROM shakes it but doesn't break it, right after this.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: A blast in the central Asian nation of Uzbekistan results in casualties and tops our news around the world.

A.P. reports that militants have taken hostages after setting off a grenade during a police standoff near northern Tashkent. It's near the scene of Tuesday's fight that killed 23 people, including three officers.

At least 42 people died since violence erupted on Sunday. Uzbekistan is a key U.S. ally in the war on terror.

A painting by 17th century Dutch master Johannes Vermeer is expected to fetch over $5 million on the auction block this summer. "Young Woman Seated at the Virginal" is the first Vermeer work to go on public sale in more than 80 years.

And a 25-year-old man in India marries his 80-year-old grandmother. He says he did it to take care of her. Family members are enraged. Local officials say the marriage is illegal but do not plan to take any action.

Here in the U.S., sometime the words get in the way. Former NFL great Paul Hornung is causing controversy over some racial comments. The former Notre Dame star told a Detroit radio station his alma mater must lower its academic standards if it wants to stay competitive.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: I have to ask you about Notre Dame. And maybe even the state of college football today. It just seems that there just aren't giants any more. Every team...

PAUL HORNUNG, NFL HALL OF FAMER: No, there really isn't.

UNIDENTIFIED MALE: ... seems to have a down. Is it limited scholarships?

HORNUNG: Well, we're going to have -- As far as Notre Dame is concerned, we're going to have to ease it up a little bit. We can't stay as strict as we are, as far as the academic structure is concerned. Because we've got to get the black athlete. We must get the black athlete if we're going to compete.

(END AUDIO CLIP)

PHILLIPS: Notre Dame has yet to comment on the remarks. Straight ahead, Rhonda Schaffler, New York, talking Donald Trump. Imagine that.

Rhonda, what you got?

RHONDA SCHAFFLER, CNN CORRESPONDENT: That's right, Kyra. His new reality potentially could be failing casinos. I'll tell you if the billionaire's luck is running out when LIVE FROM continues right after this break.

(COMMERCIAL BREAK)

PHILLIPS: Police are pouring over phone records and searching for clues in the disappearance of a University of Wisconsin student. But so far, they've uncovered little about what happened to her.

Jonathan Freed has an update.

(BEGIN VIDEOTAPE)

JONATHAN FREED, CNN CORRESPONDENT (voice-over): Security camera video offers an eerie echo of the last time Audrey Seiler was spotted, leaving her apartment building early Saturday.

The "A" student at the University of Wisconsin in Madison is the last person anyone expected to be caught up in controversy. But it's the second time in two months.

CAPT. LUIS YUDICE, MADISON, WISCONSIN, POLICE: She left the apartment at approximately 2:30 in the morning, and she took no personal belongings with her.

FREED: Police are still puzzled by an incident on February 1, when Seiler was attacked from behind and knocked unconscious while out walking after midnight. She woke up behind a nearby building but wasn't robbed or otherwise hurt.

YUDICE: It is unusual for somebody to be attacked by a total stranger on the street, but once again, we have not been able to make any connection.

FREE: And there's no evidence of a crime this time.

The search for Seiler -- on land, by air and on the water -- has been joined by 100 volunteers, including family and friends from her hometown of Rockford, Minnesota.

KEITH SEILER, FATHER: Audrey's whole family is hopeful and remains confident that we will find Audrey safe.

FREED: The university's even set up a website and e-mailed some 45,000 of its computer users, asking them for help.

Seiler's family does not believe she was depressed and say she seemed to be dealing well with the fallout from the February attack. UNIDENTIFIED MALE: We're very confident and determined that if the right person hears us, sees her face, that they'll have some information that will help us.

FREED: Jonathan Freed, CNN Chicago.

(END VIDEOTAPE)

PHILLIPS: Well, TV viewers got a little Janet Jackson with their coffee this morning.

Wow, waking up to that. That was the performance on "Good Morning America," part two, shall we say, in her push to sell her new album, "Damita Jo," and this time she managed to somewhat stay inside what little outfit she had on.

You're fired -- up about Donald Trump, aren't you? Thanks to his hit TV show, Trump bigger than his conference table in his boardroom.

Our Jeanne Moos shows us how his fans are worshipping the comeback kid.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Tourists pose in front of Playboy, they pose in front of Tiffany. But those spots have been trumped by the onslaught of tourists posing in front of Trump Tower.

UNIDENTIFIED MALE: The one place he wanted to see, Trump.

UNIDENTIFIED MALE: And here I am.

UNIDENTIFIED FEMALE: Because of the famous clip at the end of the show when the cab takes off.

MOOS: You know, after Donald says...

DONALD TRUMP, REAL ESTATE MOGUL: You're fired.

MOOS: ... and the loser leaves dragging a suitcase like a tail between their legs.

Tourists seem especially fired up by the words...

UNIDENTIFIED FEMALE: You're fired.

UNIDENTIFIED MALE: You're fired.

UNIDENTIFIED FEMALE: You're fired?

MOOS: In case anyone needs a cue card, a huge ad hangs from Trump Tower.

The city has issued four tickets telling Trump to remove illegal signage. No banner ads allowed on classy Fifth Avenue. UNIDENTIFIED FEMALE: Because it cheapens the building.

UNIDENTIFIED FEMALE: It's Trump Towers. He should be able to do what he wants.

MOOS: Fines run as high as $2,500 bucks per ticket, chump change for Trump. A spokesperson says, "I don't see a reason why we wouldn't keep it up until the show's finale on April 15."

UNIDENTIFIED FEMALE: You're fired.

UNIDENTIFIED FEMALE: You're fired.

UNIDENTIFIED FEMALE: His hair's a little weird.

UNIDENTIFIED FEMALE: His hair needs help.

UNIDENTIFIED MALE: His hair is sweet.

MOOS: Trump's new book devotes a chapter to it. "My hair is 100 percent mine. No animals have been harmed in the creation of my hairstyle."

KING: It's not a toupee. It is not a comb over.

TRUMP: Don't mess it up too much.

KING: No, no.

UNIDENTIFIED FEMALE: In all honestly, his hair looks better on this than it does on him.

MOOS: This being Trump's wax figure at Madam Tussaud's.

UNIDENTIFIED FEMALE: I'm afraid he's going to say, you're fired.

MOOS: Even as "The New York Times" raises the specter of Trump's casino empire facing bankruptcy, his showbiz career is soaring. Trump's book includes a cartoon showing Donald Duck saying, "I remember when I was the Donald."

Now we're all trying to be the Donald.

UNIDENTIFIED FEMALE: His hand is going, you're fired.

UNIDENTIFIED FEMALE: you're fired.

MOOS: If only we could figure out how to get the fingers right.

TRUMP: You're fired.

UNIDENTIFIED FEMALE: You're fired.

MOOS: You're hired.

Jeanne Moos, CNN, New York. (END VIDEOTAPE)

PHILLIPS: Well, Donald Trump may be fired up about his reality TV show, but his casinos are kind of down on their luck. Rhonda Schaffler, live from the New York Stock Exchange with the latest numbers.

(STOCK REPORT)

PHILLIPS: Coming up next, in our second hour of LIVE FROM, all the day's news and a visit with PGA tour golfer Adam Scott, who is hot. And if you miss it, you are not. LIVE FROM, big show, tees off right after this.

(COMMERCIAL BREAK)

PHILLIPS: Attacks in Iraq. Cheering mobs drag civilian bodies through the streets. And a blast kills American troops.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Christians had a better chance against the lions than the American consumer has against the OPEC cartel.

(END VIDEO CLIP)

PHILLIPS: Pain at the pump and no relief in sight from oil- producing countries. How high will prices fly?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I felt very betrayed, very embarrassed, and very trapped, as well.

(END VIDEO CLIP)

PHILLIPS: Sexual assaults within the military, in the spotlight on Capitol Hill. An Army captain shares her story.

And the real deal from Down Under. He's a player's champ, and now PGA tour golfer Adam Scott is shooting for the master's. He joins us live in the house.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is off today. This hour of CNN's LIVE FROM tees off right now.

First this hour, the horrifying day in Iraq for the Americans working toward the country's reconstruction.

Nine more people have died in acts of violence: five American troops who were killed in a roadside bombing and four civilian contractors, whose fiery death in an ambush fueled a grisly celebration from Baghdad.

CNN's Jim Clancy.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT: Fire and death in the city of Fallujah this day. Four contractors with the coalition provisional authority drove two SUVs into Fallujah. They had been tracked from a nearby military base when they were set upon by insurgents who were wearing masks or scarves around their faces.

They fired or hurled grenades into the vehicles. They caught fire and then sprayed those vehicles with assault rifles, AK-47s.

All four of the contractors were killed. We understand that three out of the four were Americans. Some of them may have worked for a North Carolina company that is a security consulting firm.

No other details were available but it was an ugly scene as crowds converged on the burning cars hurling bricks, hurling chunks of cement onto the cars and then dragged some of the charred bodies out into the streets where some of them were dismembered or otherwise disfigured and then put on public display.

(on camera): Meantime, a difficult day for the U.S. military, perhaps the toughest day since early January when nine U.S. troops were killed in a helicopter crash. Five soldiers with the 1st Infantry Division were killed when the vehicle that they were riding in near Habbaniya, also inside the Sunni Triangle, went over a roadside bomb or a bomb that had been implanted in the roadway. The five soldiers died.

In Basra in southern Iraq, three British soldiers were wounded, one of them reportedly very seriously as a result of a roadside bomb there, so all in all a tough day for the coalition provisional authority and for the coalition troops that are fighting in Iraq.

There have been many warnings that things may get worse before they get any better as the coalition counts down to June 30th when it will transfer power and sovereignty into the hands of the Iraqi Governing Council.

Jim Clancy, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: As if oil and gasoline prices aren't high enough, OPEC ministers decide to cut production by a million barrels a day starting tomorrow. The White House stopped short of criticizing the oil cartel. It's said to be working behind the scenes to get more crude pumped into the market.

And if that doesn't happen, we'll see long lines at the gas stations like we did in the 1970s most likely. The latest CNN-USA Today Gallup poll shows most Americans see the rising pump prices as a major problem but they don't think it's a crisis just yet.

CNN's Bill Tucker takes a closer look.

(BEGIN VIDEOTAPE) BILL TUCKER, CNN CORRESPONDENT (voice-over): With gasoline prices headed well north of $2.00 a gallon in some places, voter anger is rising and the political rhetoric is getting interesting.

REP. EDWARD MARKEY (D), MASSACHUSETTS: The Christians had a better chance against the lions than the American consumer has against the OPEC cartel.

TUCKER: Gasoline stations have become the backdrop of campaign moments with demands of action to bring prices down.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We should be putting pressure on OPEC to raise the supply and not allow those countries to undermine the economies of the world.

TUCKER: The Republicans had their own response.

ANNOUNCER: If Kerry's gas tax increase were law, the average family would pay $657 more a year.

TUCKER: In the House, a bipartisan group has sent the Bush administration a letter asking that they file a case with the World Trade Organization against OPEC for restricting production and colluding to raise prices none of which addresses the real problem, our ever increasing demand for energy.

Over the last 20 years demand has risen an average of one percent a year. Refining capacity has not. But building refineries is never a popular idea. It seems we'd rather drive our cars, blame OPEC, and avoid the real issue.

PAUL ROBERTS, AUTHOR, "THE END OF OIL": Wondering what OPEC is going to do at its meeting this is all window dressing on a much, on a larger question which is a lack of an energy policy. You know we have a patchwork energy policy and we've never really been willing to attack it in a comprehensive long term way.

TUCKER (on camera): We'd rather yell about it and ignore the fact that despite the recent run-up in prices Americans still pay considerably less than consumers in say Britain where the price is about $5.25 per gallon.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Other news across America now begins in Texas with dramatic video from an oil refinery last night. Ten people were treated for chemical exposure after a furnace at the BP Amoco plant exploded. Emergency management officials say there's no evidence of terrorist involvement in that blast. The plant is now back in operation.

Plugged in and behind the mike, Al Franken believes his fledgling radio network will provide listeners with an alternative to conservative talk radio. His approach is unabashedly liberal. The "O'Franken Factor" pokes fun at conservatives everywhere.

Open mouth, insert foot, NFL Hall of Famer Paul Hornung's latest radio interview is making waves. In it he suggested that his alma mater Notre Dame needs to lower its academic standards to stay competitive.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I have to ask you about Notre Dame and maybe even the state of college football today. It just seems that there just aren't giants anymore.

PAUL HORNUNG, NFL HALL OF FAMER: No, there really isn't.

UNIDENTIFIED MALE: Every team seems to have a down. Is it limited scholarships?

HORNUNG: Well, we're going to have -- as far as Notre Dame is concerned, we're going to have to ease it up a little bit. We can't stay as strict as we are as far as the academic structure is concerned because we got to get the black athlete. We must get the black athlete if we're going to compete.

(END VIDEO CLIP)

PHILLIPS: The University of Notre Dame says Hornung is an illustrious alumnus but a statement from the school says, "He in no way speaks for the university and we strong disagree with the thesis of his remarks. They are generally insensitive and specifically insulting to our past and current African American student athletes."

Michael Jackson creating quite a stir, not in court but on Capitol Hill. He's meeting lawmakers with a specific agenda in mind fighting AIDS.

Our Joe Johns at the capital keeping tabs on the pop star. What's the latest, Joe?

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Kyra, this is Michael Jackson's second appearance on Capitol Hill. We'll give you an idea right now of the kind of attention he's attracting, security people, staffers, a lot of media, all here to try to get a glimpse of Michael Jackson.

He was here last night meeting with about a dozen members of the Congressional Black Caucus. Not all of the members of the caucus have said they want to meet with him.

Of course what people want us to talk about who work with Jackson is the fact that he's receiving a humanitarian award for his work in Africa but what they don't want us to talk about is the real buzz. That's his legal problems on the West Coast.

Earlier today on CNN, Sheila Jackson Lee, his host at this meeting talked to Wolf Blitzer about those legal problems.

(BEGIN VIDEO CLIP)

REP. SHEILA JACKSON LEE (D), TEXAS: No one is taking lightly these charges. No one is condoning any of the actions that are alleged but this is a people's house and we have seen many people come into the United States Congress who have had a variety of legal problems. They've come for separate reasons. They've come to be helpful. They've come to testify. Mr. Jackson's legal problems will be addressed in a court of law.

(END VIDEO CLIP)

JOHNS: Again, Sheila Jackson Lee, Congresswoman Sheila Jackson Lee of Texas is his host for this meeting. Apparently, he's supposed to be meeting with a number of African ambassadors -- Kyra, back to you.

PHILLIPS: Joe Johns, a lot of criticism about his motives. What is the Black Caucus sort of saying behind closed doors about Jackson and wanting to, you know, steer away from bad publicity and has he been there before talking about fighting against AIDS?

JOHNS: Well, that's one of the things. A leading member of the Congressional Black Caucus I spoke to, not the chairman, told me that as far as she's concerned he never came to her district and now he's here on Capitol Hill because he's in trouble, so there is a lot of criticism of his motives for appearing here on Capitol Hill. Of course, he says it's to promote his humanitarian efforts in Africa.

PHILLIPS: Our Joe Johns thank you.

Now to Wisconsin where a family is making a simple vow. "We will find you, Audrey and we are going to bring you home safely." Volunteers are looking everywhere for 20-year-old Audrey Seiler. She's been missing for four days but police are not sure that a crime has been committed.

Our Jonathan Freed has the latest on the search.

(BEGIN VIDEOTAPE)

JONATHAN FREED, CNN CORRESPONDENT (voice-over): Security camera video offers an eerie echo of the last time Audrey Seiler was spotted leaving her apartment building early Saturday.

The A student at the University of Wisconsin in Madison is the last person anyone expected to be caught up in controversy but it's the second time in two months.

CAPT. LUIS YUDICE, MADISON POLICE: She left the apartment there at approximately 2:30 in the morning and she took no personal belongings with her.

FREED: Police are still puzzled by an incident on February 1st when Seiler was attacked from behind and knocked unconscious while out walking after midnight. She woke up behind a nearby building but wasn't robbed or otherwise hurt. YUDICE: It is unusual for somebody to be attacked by a total stranger on the street but, once again, we have not been able to make any connection.

FREED: And, there's no evidence of a crime this time. The search for Seiler on land, by air, and on the water, has been joined by 100 volunteers, including family and friends from her hometown of Rockford, Minnesota.

KEITH SEILER, FATHER: Audrey's whole family is hopeful and remains confident that we will find Audrey safe.

FREED: The university has even set up a website and e-mailed some 45,000 of its computer users asking them for help. Seiler's family does not believe she was depressed and say she seemed to be dealing well with the fallout from the February attack.

SCOTT CHARLESWORTH-SEILER, UNCLE: We're very confident and determined that if the right person hears us, sees her face, that they'll have some information that will help us.

FREED: Jonathan Freed, CNN, Chicago.

(END VIDEOTAPE)

PHILLIPS: Disorder within the ranks, an Army captain testifies on Capitol Hill about her sexual assault by a fellow soldier. Unfortunately her story is not unique.

(BEGIN VIDEO CLIP)

They can wear crosses so why can't I wear my (unintelligible)?

(END VIDEO CLIP)

PHILLIPS: School dress code versus freedom of religion, a little girl's case with national implications.

And a hot young golfer looking for big things at the Masters Tournament. PGA Tour champ Adam Scott tees it up with me later on LIVE FROM.

(COMMERCIAL BREAK)

(WEATHER FORECAST)

(COMMERCIAL BREAK)

PHILLIPS: On Capitol Hill today, the Congressional Caucus for Women's Issues is taking up sexual assault within the military. It's an issue that's gotten attention before but some say not nearly enough action.

(BEGIN VIDEO CLIP)

CAPT. JENNIFER MACHMER, U.S. ARMY: I left for Kuwait in February of 2003. I was again assaulted in March by an NCO, a Master Sergeant Max Riddle (ph). There was no way I could file away another violation, a sexual violation to myself, so I went and I reported it within a half hour. The aftermath of reporting it has been terrifying.

(END VIDEO CLIP)

PHILLIPS: And the stories don't stop there. Representative Carolyn Maloney joins us now from Washington where she has been hearing disturbing testimony today. Representative, thanks for being with us and I've got to ask you critics are saying what took so long?

REP. CAROLYN MALONEY (D), NEW YORK: Well, we're asking the same thing. I documented since 1988 there have been 18 reports from the Department of Defense and others on what to do about sexual misconduct in the military, yet there has been little or no action. That's more than one -- 16 -- that's more than one report a year.

And in 1997 after Aberdeen, I offered a bill asking for yet another report. They reported back in 1999 with specific actions, none of which have been implemented and I am sending a letter today, along with my colleagues, to Secretary Rumsfeld asking for a meeting on what has been done and what are they doing?

What the captain reported is that if you are a woman in the military and you're raped you will probably be discharged but if you are a man in the military and rape a colleague you get a transfer and you just might get a promotion.

PHILLIPS: I got to tell you Representative Maloney I listened to all the testimony. Being overseas I've even heard a number of stories myself. I've got to ask you as this is finally coming to the forefront, it's even been on the front of the "New York Times" a few times some articles, do you think this is finally being taken seriously or are there still tremendous gaps in the system and is this a good old boys network still to this date?

MALONEY: There are obviously tremendous gaps in the system. It has always been taken seriously I would say by every American, by everyone in our country and yet nothing seems to happen. Nothing seems to take place.

I intend to legislate the recommendations from the last report in 1999 from the Department of Defense that came forward with specific recommendations, an independent office for sex offenses in every branch of the military, civilians and military personnel being used to review the cases, privacy concerns and others that have been raised in reports and raised before Congress today.

PHILLIPS: Well, with regard to the military truly listening and making changes, let's listen to what the victim Jennifer Machmer had to say during testimony today.

(BEGIN VIDEO CLIP)

MACHMER: I would have to definitely say it starts with punishing them accordingly. Scare these other perpetrators in knowing that they will be punished. They will lose their career. They will lose everything they have. They may lose their spouse. Their financial situation may be destroyed. Their friends may turn their backs on them. Let them feel the pain the victims have felt.

(END VIDEO CLIP)

PHILLIPS: Representative Maloney will changes be made and is the Pentagon listening to you?

MALONEY: It needs to be treated as more than a slap on the wrist or a transfer. It was testified today that well over 127 credible cases have been reported to an independent organization, yet only 27 brought charges because they felt it would hinder their career, that they would be drummed out of the military because that's what they've seen happen to other victims.

We have brave men and women protecting us overseas, in our own country, and we need to make sure that they are protected from any type of disrespect or sexual assault from their colleagues. That's the least we can do for them.

PHILLIPS: Well, I have to ask you have you heard from an admiral, from a general, from the chief of staff? Have you heard from Donald Rumsfeld's office?

MALONEY: I have not heard from Donald Rumsfeld and this is the third letter that we have sent to him requesting a meeting. I hope that we will get a meeting on what they are doing. He says he will issue a report at the end of April. I hope it will include these recommendations.

But, Kyra, when I was in Iraq I did question several of the generals and they said they were treating it seriously, that they were reviewing every charge and responding to it.

We just need to put more attention on this and put more force behind it and certainly a woman who is raped should not be humiliated and discharged from the military while she sees her rapist promoted and transferred in many cases.

One woman reported that after the rape and after she testified about it that she had to salute her rapist. It's -- the stories that you hear are horrifying and they do not live up to the fine tradition of the great military of America.

PHILLIPS: Point well made. That's definitely a slap in the face. What happens now to Jennifer Machmer and these other women that have come forward?

MALONEY: Many of them report that they are humiliated and forced to leave the military. One woman reported that she testified about her rape incident. They then violated privacy rules and charged her with fraternization. The only way they had that information is because she gave that to them. So what women are seeing, or so they are telling us, is that if they report rape they're the ones that then become the victim and are punished again through a system that does not treat rape as a serious crime.

The FBI rates murder as the most serious crime. Second to murder is rape. Rape is a crime. It is a criminal offense. It should be treated as such. So far from the testimony we're hearing it's not treated seriously by the chain of command in the military.

PHILLIPS: And these are women that are fighting for our freedom right there alongside with the men. Representative Carolyn Maloney, I can promise you it's a story we won't let go. Thank you so much for your time today.

MALONEY: Thank you, Kyra. Thank you.

PHILLIPS: Well, a former prisoner is told she has to go back to jail after two years of freedom, the reason, a miscalculation but someone comes to the rescue with some new math. We're going to add it up straight ahead.

RHONDA SCHAFFLER, CNN FINANCIAL CORRESPONDENT: I'm Rhonda Schaffler in New York. One music giant is trimming his talent roster. Details on which acts may get canned with LIVE FROM jams on after this break.

(COMMERCIAL BREAK)

PHILLIPS: Now an update on that California woman who thought she completed her prison sentence two and a half years ago until the state revised the way it figured jail terms.

CNN's Frank Buckley says she may avoid a return to the slammer after all thanks to a certain former action hero.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice-over): The woman in the prison ID photo had changed. After seven years in prison and two and a half years of freedom, Pamela Martinez had a job and the respect of co-workers and friends.

PAMELA MARTINEZ, FORMER PRISONER: I've tried so hard to change my life around and now they're going to reduce me back to poverty status.

BUCKLEY: That was Pamela last week as she and her supporters asked California Governor Arnold Schwarzenegger for clemency. It was a long shot but it worked. Governor Schwarzenegger recommends to the California Supreme Court in this letter that her sentence be commuted to time served.

MARTINEZ: I mean the thought that the governor would actually consider this is like what kind of percentage is that? BUCKLEY: Pamela is taking it one step at a time. Monday's step to get a judge to stay her sentence to keep her out of prison for now. That smile on her face after the judge's ruling.

UNIDENTIFIED MALE: Thank you and good luck.

MARTINEZ: Thank you.

BUCKLEY: The California Supreme Court will now consider if Pamela Martinez has paid her debt to society, if seven years in prison is long enough for stealing a tool box, if 65 additional days are necessary.

MARTINEZ: It's step-by-step every day now, so, but hey I won't be sitting in prison tomorrow. Yes.

BUCKLEY: Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Other news around the world now, more violence in Uzbekistan earlier today. The capital city of Tashkent was rocked by an explosion. Officials say there are casualties but they're not sure if the blast is related to the current wave of terrorist violence in the central Asian nation. So far, more than 40 people have died in a series of attacks that began on Sunday.

In East Jerusalem, Palestinian demonstrators clashed with police and Jewish settlers who were trying to move into a predominantly Muslim neighborhood. Police fired teargas to break up the protests and later found a cache of Molotov cocktails on a rooftop. Six police were injured. Nine Palestinians were arrested.

In Berlin, representatives of more than 50 countries met with Afghan officials in a donor's conference. The AP reports the finance minister for war-torn Afghanistan says donors pledged $4.4 billion in aide over the next year.

Big shake-up at the big music company. Thousands of people singing the blues. Rhonda Schaffler live from the New York Stock Exchange with that -- Rhonda.

SCHAFFLER: Hi there, Kyra.

We're talking about EMI, the world's third biggest music company. It is home to, among others, the Rolling Stones and more recently (unintelligible). The company is slashing 1,500 workers and it's also trimming its artist roster. One in every five EMI artists is getting walking papers.

Mostly the talent being cut are described by the company as niche and under performing artists but the company is not naming any names. EMI also plans to outsource its CD and DVD manufacturing plants now in Europe and the U.S. including a factory in Illinois -- Kyra.

PHILLIPS: Rhonda, EMI slimming down but another big company just keeps on growing doesn't it?

SCHAFFLER: Yes, it's Starbuck's. Consumers apparently just can't get enough coffee. Starbuck's is now opening shops at a rate of about three and a half a day worldwide.

The company says that figure could increase. There are currently nearly 8,000 Starbuck's and the long term plan is to have at least 25,000. That stock, despite this news, trading slightly lower but, of course, the broader market also lagging today. The Dow Industrial Average off 17 points, the NASDAQ little change. That's the latest from Wall Street.

Later this hour, TV networks are talking censorship by telling parents about the tools they need to block certain shows from kids.

LIVE FROM continues right after this break.

(COMMERCIAL BREAK)

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Aired March 31, 2004 - 13:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Scott McClellan saying despite the attacks, no matter how cruel they get, the U.S. is not going to be intimidated by what's happening there. Because as you know, today was one of the deadliest days this year for the coalition in Iraq.
Here to offer unique perspective, our Baghdad bureau chief, Jane Arraf.

You know this area of Fallujah very well. When you see what happens there. Kind of put into perspective for us -- it's a bit of dilemma, isn't it, with regard to your safety, going there and having to cover what happens there?

JANE ARRAF, CNN CORRESPONDENT: It's a huge dilemma, Kyra, not just for western journalists but for Arab ones, as well. I mean, we've got to cover this. It's essential. But at the same time, you've got to stay alive to cover that story.

And we have not escaped strategy. We've lost two people. Other news organizations have lost people, as well.

And it is quite a dangerous place, perhaps more dangerous than other places. Americans refer to it as the Wild West in a sense. So the challenge, the dilemma, is really to keep an eye on what's going on there and in other places like that and still not be killed doing it.

PHILLIPS: And even some of the other journalists you know, that I guess you could say are a little rough around the edges, that have even gone into that area have even said to you that when they have gone, they haven't even sometimes been able to tell their organization. I mean, this is how...

ARRAF: There are all sorts of ways of trying to figure out exactly how you're going to cover that story. Any journalist who's there desperately wants to find out what's going on.

In a place like Fallujah, you really want to explore what is it about this place that makes it so unique, that makes this violence keep happening?

I was there a few months ago and it was extraordinary, the extent of anti-American sentiment there that perhaps you don't get in other places in Iraq. PHILLIPS: Give us some examples of that.

ARRAF: Well, for instance, when the helicopter was shot down with the loss of American lives. Perfectly nice-seeming people invited us into their homes, gave us tea, and told us how they were really very sorry that more Americans hadn't been killed.

Now we have to understand, that's not the perception, that's not the sentiment of all Iraqis. And clearly there are a lot of Iraqis that either secretly or openly are glad American soldiers are there.

But in Fallujah, particularly, there is a very vocal minority, perhaps, of people who really passionately, desperately want the Americans out. And that's the kind of rage that we saw today in that incident.

PHILLIPS: And they want them out because of the number of misconceptions, or at least stereotypes. I mean, you were talking about this with us earlier today. Tell our viewers about what they think.

ARRAF: Well, some of what they think goes back to what they think in general of Americans, which is something that underpins a lot of places in the Middle East, and we have to be aware of this.

They think that the U.S. is simply supporting Israel, that it's come to Iraq to steal their oil. And when they see American soldiers in the streets, a lot of them do think that they're not American soldiers, that they are Israeli soldiers.

But we have to understand that this is a common sentiment and mistrust runs very deeply.

And I think we also have to remember, Kyra, that this is a town that really has a long memory. It's a town where bomb, a U.S. bomb hit the marketplace in 1991, killing more than 100 civilians. It's a town where...

PHILLIPS: That was a mistake, right?

ARRAF: It was a mistake. It's a town where the army opened fire on protesters after this last war. And things like that don't go away.

But at the same time, we have to understand, as well, this is not what's happening in the rest of Iraq, that all of this is punctuated by violence. But in those spaces in between, people are living normal live, just punctuated by these horrible incidents that keep happening.

PHILLIPS: Well, some might say, you know, this is only 30 miles from Baghdad, Fallujah. So if you can't get an area like Fallujah under control, how do you get the rest of the country under control?

ARRAF: Well, that's a good point. Geographically, on a map, it is not very far away. But in other terms, it is worlds away. Now, again, Fallujah is really interesting, because it is -- it poses the essential question, how do you reconstruct this country and maintain stability in a place where these were people, many of whom depended on Saddam, many of them were Ba'ath Party people, and now they've been cut out?

It's been made abundantly clear to them they have no future. They see the Kurds getting ahead. They see the Shias getting ahead. They have this historical animosity towards Americans. They have this suspicion of American motives.

And without making the economy better, and without being able to crack down on the insurgents better than they have, it really is going to be tough to improve that situation.

PHILLIPS: Well, we're continually amazed here when we watch you do your live shots and watch you travel throughout Iraq. We sure appreciate. We're glad you're here and thanks for your insight today.

ARRAF: Thanks, Kyra. Great to be here. Thank you.

PHILLIPS: All right. Our Jane Arraf, thanks so much.

Well, roadside bombs are often the weapon of choice among insurgents in Iraq. Jane's seen plenty of those.

CNN's Mike Brooks is here to talk about their tactics and show us what those bombs actually look like.

Mike, show us some of these unique pictures that you've received.

MIKE BROOKS, CNN ANALYST: Well, you know, Kyra, they were just talking about the bomb that killed the military personnel was one that was buried under the street.

But there are also other bombs that are used. We obtained a couple -- three pictures, showing a grenade that was placed under the carriage of a U.S. vehicle.

Some American personnel were jittery to get in this vehicle. They did a search, and they found this grenade hanging under the frame of the car.

Now, it's held on by wire. It's just not very sophisticated. The grenade has wire wrapped around it. It's attached to the frame, and there's another piece of wire running off to the side here. That's actually attached to the wheel.

If we can show the -- a little closer up of this grenade, you see how it's attached, and then the other wire goes off and it's attached to wheel of the vehicle.

So as the vehicle starts to turn it would pull the pin. The spoon would fly off. And you see it here on the wheel. The spoon would fly off. And the grenade would go off, either killing or seriously injuring the people inside. Again, not very sophisticated, but very, very effective.

PHILLIPS: Getting pretty advanced about where they're putting these explosives devices, right? I mean, you talked about, they're digging holes in the streets, covering them up. They're putting them in Coke cans.

We've heard a lot of the stories about how, I guess, creative these terrorists are coming with these explosives.

BROOKS: They're just using the imagination. Anything you can probably think of, they've probably already thought of it.

A source -- a federal law enforcement source who has been over there investigating some of these bombings told me that they're using dead animals along the side of the road. They're digging up the street, putting bombs down to remotely detonate them.

They're also using piles of rocks. He said you'll see soldiers going up and actually scooping up these piles of rocks to just get rid of any target of opportunity.

Whatever we can think of, that's what they're doing. And they're hiding them all over the place, Kyra. Donkey carts, Coke cans, whatever you can think of, whatever they can either remotely detonate or something they can run a wire from. That's what they're using.

PHILLIPS: Well, at the same time, intelligence is also getting better. You had a number of stories from your contacts there in Iraq about all the explosives that they're finding and materials to make them, right?

BROOKS: That's exactly right. A lot of Iraqis are coming in to the coalition, giving them intelligence, putting their life on the line by cooperating with the coalition, tell them where they can find explosive devices.

My source said that almost on a daily basis they're going out and recovering ordnance. These are bombs that were probably set to go off somewhere in the street or grenades like we've seen here.

They're taking military ordnance. They're breaking them down, and they're putting powders and everything else in barrels. And they're using these barrels as boosters for some of the larger bombs that we've seen.

But the cooperation, they say, from the Iraqis, citizens there in Baghdad, in the outlying areas, they said is just fantastic. And they're putting their life on the line by giving the information to the coalition.

PHILLIPS; Mike Brooks, thanks.

Straight ahead, they say they're happy together. Find out why the rest of the family just doesn't approve of this more than unconventional marriage. And Ms. Jackson in the morning. Can you imagine waking up to this? The concert you may have missed.

LIVE FROM shakes it but doesn't break it, right after this.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: A blast in the central Asian nation of Uzbekistan results in casualties and tops our news around the world.

A.P. reports that militants have taken hostages after setting off a grenade during a police standoff near northern Tashkent. It's near the scene of Tuesday's fight that killed 23 people, including three officers.

At least 42 people died since violence erupted on Sunday. Uzbekistan is a key U.S. ally in the war on terror.

A painting by 17th century Dutch master Johannes Vermeer is expected to fetch over $5 million on the auction block this summer. "Young Woman Seated at the Virginal" is the first Vermeer work to go on public sale in more than 80 years.

And a 25-year-old man in India marries his 80-year-old grandmother. He says he did it to take care of her. Family members are enraged. Local officials say the marriage is illegal but do not plan to take any action.

Here in the U.S., sometime the words get in the way. Former NFL great Paul Hornung is causing controversy over some racial comments. The former Notre Dame star told a Detroit radio station his alma mater must lower its academic standards if it wants to stay competitive.

(BEGIN AUDIO CLIP)

UNIDENTIFIED MALE: I have to ask you about Notre Dame. And maybe even the state of college football today. It just seems that there just aren't giants any more. Every team...

PAUL HORNUNG, NFL HALL OF FAMER: No, there really isn't.

UNIDENTIFIED MALE: ... seems to have a down. Is it limited scholarships?

HORNUNG: Well, we're going to have -- As far as Notre Dame is concerned, we're going to have to ease it up a little bit. We can't stay as strict as we are, as far as the academic structure is concerned. Because we've got to get the black athlete. We must get the black athlete if we're going to compete.

(END AUDIO CLIP)

PHILLIPS: Notre Dame has yet to comment on the remarks. Straight ahead, Rhonda Schaffler, New York, talking Donald Trump. Imagine that.

Rhonda, what you got?

RHONDA SCHAFFLER, CNN CORRESPONDENT: That's right, Kyra. His new reality potentially could be failing casinos. I'll tell you if the billionaire's luck is running out when LIVE FROM continues right after this break.

(COMMERCIAL BREAK)

PHILLIPS: Police are pouring over phone records and searching for clues in the disappearance of a University of Wisconsin student. But so far, they've uncovered little about what happened to her.

Jonathan Freed has an update.

(BEGIN VIDEOTAPE)

JONATHAN FREED, CNN CORRESPONDENT (voice-over): Security camera video offers an eerie echo of the last time Audrey Seiler was spotted, leaving her apartment building early Saturday.

The "A" student at the University of Wisconsin in Madison is the last person anyone expected to be caught up in controversy. But it's the second time in two months.

CAPT. LUIS YUDICE, MADISON, WISCONSIN, POLICE: She left the apartment at approximately 2:30 in the morning, and she took no personal belongings with her.

FREED: Police are still puzzled by an incident on February 1, when Seiler was attacked from behind and knocked unconscious while out walking after midnight. She woke up behind a nearby building but wasn't robbed or otherwise hurt.

YUDICE: It is unusual for somebody to be attacked by a total stranger on the street, but once again, we have not been able to make any connection.

FREE: And there's no evidence of a crime this time.

The search for Seiler -- on land, by air and on the water -- has been joined by 100 volunteers, including family and friends from her hometown of Rockford, Minnesota.

KEITH SEILER, FATHER: Audrey's whole family is hopeful and remains confident that we will find Audrey safe.

FREED: The university's even set up a website and e-mailed some 45,000 of its computer users, asking them for help.

Seiler's family does not believe she was depressed and say she seemed to be dealing well with the fallout from the February attack. UNIDENTIFIED MALE: We're very confident and determined that if the right person hears us, sees her face, that they'll have some information that will help us.

FREED: Jonathan Freed, CNN Chicago.

(END VIDEOTAPE)

PHILLIPS: Well, TV viewers got a little Janet Jackson with their coffee this morning.

Wow, waking up to that. That was the performance on "Good Morning America," part two, shall we say, in her push to sell her new album, "Damita Jo," and this time she managed to somewhat stay inside what little outfit she had on.

You're fired -- up about Donald Trump, aren't you? Thanks to his hit TV show, Trump bigger than his conference table in his boardroom.

Our Jeanne Moos shows us how his fans are worshipping the comeback kid.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Tourists pose in front of Playboy, they pose in front of Tiffany. But those spots have been trumped by the onslaught of tourists posing in front of Trump Tower.

UNIDENTIFIED MALE: The one place he wanted to see, Trump.

UNIDENTIFIED MALE: And here I am.

UNIDENTIFIED FEMALE: Because of the famous clip at the end of the show when the cab takes off.

MOOS: You know, after Donald says...

DONALD TRUMP, REAL ESTATE MOGUL: You're fired.

MOOS: ... and the loser leaves dragging a suitcase like a tail between their legs.

Tourists seem especially fired up by the words...

UNIDENTIFIED FEMALE: You're fired.

UNIDENTIFIED MALE: You're fired.

UNIDENTIFIED FEMALE: You're fired?

MOOS: In case anyone needs a cue card, a huge ad hangs from Trump Tower.

The city has issued four tickets telling Trump to remove illegal signage. No banner ads allowed on classy Fifth Avenue. UNIDENTIFIED FEMALE: Because it cheapens the building.

UNIDENTIFIED FEMALE: It's Trump Towers. He should be able to do what he wants.

MOOS: Fines run as high as $2,500 bucks per ticket, chump change for Trump. A spokesperson says, "I don't see a reason why we wouldn't keep it up until the show's finale on April 15."

UNIDENTIFIED FEMALE: You're fired.

UNIDENTIFIED FEMALE: You're fired.

UNIDENTIFIED FEMALE: His hair's a little weird.

UNIDENTIFIED FEMALE: His hair needs help.

UNIDENTIFIED MALE: His hair is sweet.

MOOS: Trump's new book devotes a chapter to it. "My hair is 100 percent mine. No animals have been harmed in the creation of my hairstyle."

KING: It's not a toupee. It is not a comb over.

TRUMP: Don't mess it up too much.

KING: No, no.

UNIDENTIFIED FEMALE: In all honestly, his hair looks better on this than it does on him.

MOOS: This being Trump's wax figure at Madam Tussaud's.

UNIDENTIFIED FEMALE: I'm afraid he's going to say, you're fired.

MOOS: Even as "The New York Times" raises the specter of Trump's casino empire facing bankruptcy, his showbiz career is soaring. Trump's book includes a cartoon showing Donald Duck saying, "I remember when I was the Donald."

Now we're all trying to be the Donald.

UNIDENTIFIED FEMALE: His hand is going, you're fired.

UNIDENTIFIED FEMALE: you're fired.

MOOS: If only we could figure out how to get the fingers right.

TRUMP: You're fired.

UNIDENTIFIED FEMALE: You're fired.

MOOS: You're hired.

Jeanne Moos, CNN, New York. (END VIDEOTAPE)

PHILLIPS: Well, Donald Trump may be fired up about his reality TV show, but his casinos are kind of down on their luck. Rhonda Schaffler, live from the New York Stock Exchange with the latest numbers.

(STOCK REPORT)

PHILLIPS: Coming up next, in our second hour of LIVE FROM, all the day's news and a visit with PGA tour golfer Adam Scott, who is hot. And if you miss it, you are not. LIVE FROM, big show, tees off right after this.

(COMMERCIAL BREAK)

PHILLIPS: Attacks in Iraq. Cheering mobs drag civilian bodies through the streets. And a blast kills American troops.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Christians had a better chance against the lions than the American consumer has against the OPEC cartel.

(END VIDEO CLIP)

PHILLIPS: Pain at the pump and no relief in sight from oil- producing countries. How high will prices fly?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I felt very betrayed, very embarrassed, and very trapped, as well.

(END VIDEO CLIP)

PHILLIPS: Sexual assaults within the military, in the spotlight on Capitol Hill. An Army captain shares her story.

And the real deal from Down Under. He's a player's champ, and now PGA tour golfer Adam Scott is shooting for the master's. He joins us live in the house.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is off today. This hour of CNN's LIVE FROM tees off right now.

First this hour, the horrifying day in Iraq for the Americans working toward the country's reconstruction.

Nine more people have died in acts of violence: five American troops who were killed in a roadside bombing and four civilian contractors, whose fiery death in an ambush fueled a grisly celebration from Baghdad.

CNN's Jim Clancy.

(BEGIN VIDEOTAPE)

JIM CLANCY, CNN CORRESPONDENT: Fire and death in the city of Fallujah this day. Four contractors with the coalition provisional authority drove two SUVs into Fallujah. They had been tracked from a nearby military base when they were set upon by insurgents who were wearing masks or scarves around their faces.

They fired or hurled grenades into the vehicles. They caught fire and then sprayed those vehicles with assault rifles, AK-47s.

All four of the contractors were killed. We understand that three out of the four were Americans. Some of them may have worked for a North Carolina company that is a security consulting firm.

No other details were available but it was an ugly scene as crowds converged on the burning cars hurling bricks, hurling chunks of cement onto the cars and then dragged some of the charred bodies out into the streets where some of them were dismembered or otherwise disfigured and then put on public display.

(on camera): Meantime, a difficult day for the U.S. military, perhaps the toughest day since early January when nine U.S. troops were killed in a helicopter crash. Five soldiers with the 1st Infantry Division were killed when the vehicle that they were riding in near Habbaniya, also inside the Sunni Triangle, went over a roadside bomb or a bomb that had been implanted in the roadway. The five soldiers died.

In Basra in southern Iraq, three British soldiers were wounded, one of them reportedly very seriously as a result of a roadside bomb there, so all in all a tough day for the coalition provisional authority and for the coalition troops that are fighting in Iraq.

There have been many warnings that things may get worse before they get any better as the coalition counts down to June 30th when it will transfer power and sovereignty into the hands of the Iraqi Governing Council.

Jim Clancy, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: As if oil and gasoline prices aren't high enough, OPEC ministers decide to cut production by a million barrels a day starting tomorrow. The White House stopped short of criticizing the oil cartel. It's said to be working behind the scenes to get more crude pumped into the market.

And if that doesn't happen, we'll see long lines at the gas stations like we did in the 1970s most likely. The latest CNN-USA Today Gallup poll shows most Americans see the rising pump prices as a major problem but they don't think it's a crisis just yet.

CNN's Bill Tucker takes a closer look.

(BEGIN VIDEOTAPE) BILL TUCKER, CNN CORRESPONDENT (voice-over): With gasoline prices headed well north of $2.00 a gallon in some places, voter anger is rising and the political rhetoric is getting interesting.

REP. EDWARD MARKEY (D), MASSACHUSETTS: The Christians had a better chance against the lions than the American consumer has against the OPEC cartel.

TUCKER: Gasoline stations have become the backdrop of campaign moments with demands of action to bring prices down.

SEN. JOHN KERRY (D), PRESIDENTIAL CANDIDATE: We should be putting pressure on OPEC to raise the supply and not allow those countries to undermine the economies of the world.

TUCKER: The Republicans had their own response.

ANNOUNCER: If Kerry's gas tax increase were law, the average family would pay $657 more a year.

TUCKER: In the House, a bipartisan group has sent the Bush administration a letter asking that they file a case with the World Trade Organization against OPEC for restricting production and colluding to raise prices none of which addresses the real problem, our ever increasing demand for energy.

Over the last 20 years demand has risen an average of one percent a year. Refining capacity has not. But building refineries is never a popular idea. It seems we'd rather drive our cars, blame OPEC, and avoid the real issue.

PAUL ROBERTS, AUTHOR, "THE END OF OIL": Wondering what OPEC is going to do at its meeting this is all window dressing on a much, on a larger question which is a lack of an energy policy. You know we have a patchwork energy policy and we've never really been willing to attack it in a comprehensive long term way.

TUCKER (on camera): We'd rather yell about it and ignore the fact that despite the recent run-up in prices Americans still pay considerably less than consumers in say Britain where the price is about $5.25 per gallon.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Other news across America now begins in Texas with dramatic video from an oil refinery last night. Ten people were treated for chemical exposure after a furnace at the BP Amoco plant exploded. Emergency management officials say there's no evidence of terrorist involvement in that blast. The plant is now back in operation.

Plugged in and behind the mike, Al Franken believes his fledgling radio network will provide listeners with an alternative to conservative talk radio. His approach is unabashedly liberal. The "O'Franken Factor" pokes fun at conservatives everywhere.

Open mouth, insert foot, NFL Hall of Famer Paul Hornung's latest radio interview is making waves. In it he suggested that his alma mater Notre Dame needs to lower its academic standards to stay competitive.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I have to ask you about Notre Dame and maybe even the state of college football today. It just seems that there just aren't giants anymore.

PAUL HORNUNG, NFL HALL OF FAMER: No, there really isn't.

UNIDENTIFIED MALE: Every team seems to have a down. Is it limited scholarships?

HORNUNG: Well, we're going to have -- as far as Notre Dame is concerned, we're going to have to ease it up a little bit. We can't stay as strict as we are as far as the academic structure is concerned because we got to get the black athlete. We must get the black athlete if we're going to compete.

(END VIDEO CLIP)

PHILLIPS: The University of Notre Dame says Hornung is an illustrious alumnus but a statement from the school says, "He in no way speaks for the university and we strong disagree with the thesis of his remarks. They are generally insensitive and specifically insulting to our past and current African American student athletes."

Michael Jackson creating quite a stir, not in court but on Capitol Hill. He's meeting lawmakers with a specific agenda in mind fighting AIDS.

Our Joe Johns at the capital keeping tabs on the pop star. What's the latest, Joe?

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Kyra, this is Michael Jackson's second appearance on Capitol Hill. We'll give you an idea right now of the kind of attention he's attracting, security people, staffers, a lot of media, all here to try to get a glimpse of Michael Jackson.

He was here last night meeting with about a dozen members of the Congressional Black Caucus. Not all of the members of the caucus have said they want to meet with him.

Of course what people want us to talk about who work with Jackson is the fact that he's receiving a humanitarian award for his work in Africa but what they don't want us to talk about is the real buzz. That's his legal problems on the West Coast.

Earlier today on CNN, Sheila Jackson Lee, his host at this meeting talked to Wolf Blitzer about those legal problems.

(BEGIN VIDEO CLIP)

REP. SHEILA JACKSON LEE (D), TEXAS: No one is taking lightly these charges. No one is condoning any of the actions that are alleged but this is a people's house and we have seen many people come into the United States Congress who have had a variety of legal problems. They've come for separate reasons. They've come to be helpful. They've come to testify. Mr. Jackson's legal problems will be addressed in a court of law.

(END VIDEO CLIP)

JOHNS: Again, Sheila Jackson Lee, Congresswoman Sheila Jackson Lee of Texas is his host for this meeting. Apparently, he's supposed to be meeting with a number of African ambassadors -- Kyra, back to you.

PHILLIPS: Joe Johns, a lot of criticism about his motives. What is the Black Caucus sort of saying behind closed doors about Jackson and wanting to, you know, steer away from bad publicity and has he been there before talking about fighting against AIDS?

JOHNS: Well, that's one of the things. A leading member of the Congressional Black Caucus I spoke to, not the chairman, told me that as far as she's concerned he never came to her district and now he's here on Capitol Hill because he's in trouble, so there is a lot of criticism of his motives for appearing here on Capitol Hill. Of course, he says it's to promote his humanitarian efforts in Africa.

PHILLIPS: Our Joe Johns thank you.

Now to Wisconsin where a family is making a simple vow. "We will find you, Audrey and we are going to bring you home safely." Volunteers are looking everywhere for 20-year-old Audrey Seiler. She's been missing for four days but police are not sure that a crime has been committed.

Our Jonathan Freed has the latest on the search.

(BEGIN VIDEOTAPE)

JONATHAN FREED, CNN CORRESPONDENT (voice-over): Security camera video offers an eerie echo of the last time Audrey Seiler was spotted leaving her apartment building early Saturday.

The A student at the University of Wisconsin in Madison is the last person anyone expected to be caught up in controversy but it's the second time in two months.

CAPT. LUIS YUDICE, MADISON POLICE: She left the apartment there at approximately 2:30 in the morning and she took no personal belongings with her.

FREED: Police are still puzzled by an incident on February 1st when Seiler was attacked from behind and knocked unconscious while out walking after midnight. She woke up behind a nearby building but wasn't robbed or otherwise hurt. YUDICE: It is unusual for somebody to be attacked by a total stranger on the street but, once again, we have not been able to make any connection.

FREED: And, there's no evidence of a crime this time. The search for Seiler on land, by air, and on the water, has been joined by 100 volunteers, including family and friends from her hometown of Rockford, Minnesota.

KEITH SEILER, FATHER: Audrey's whole family is hopeful and remains confident that we will find Audrey safe.

FREED: The university has even set up a website and e-mailed some 45,000 of its computer users asking them for help. Seiler's family does not believe she was depressed and say she seemed to be dealing well with the fallout from the February attack.

SCOTT CHARLESWORTH-SEILER, UNCLE: We're very confident and determined that if the right person hears us, sees her face, that they'll have some information that will help us.

FREED: Jonathan Freed, CNN, Chicago.

(END VIDEOTAPE)

PHILLIPS: Disorder within the ranks, an Army captain testifies on Capitol Hill about her sexual assault by a fellow soldier. Unfortunately her story is not unique.

(BEGIN VIDEO CLIP)

They can wear crosses so why can't I wear my (unintelligible)?

(END VIDEO CLIP)

PHILLIPS: School dress code versus freedom of religion, a little girl's case with national implications.

And a hot young golfer looking for big things at the Masters Tournament. PGA Tour champ Adam Scott tees it up with me later on LIVE FROM.

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PHILLIPS: On Capitol Hill today, the Congressional Caucus for Women's Issues is taking up sexual assault within the military. It's an issue that's gotten attention before but some say not nearly enough action.

(BEGIN VIDEO CLIP)

CAPT. JENNIFER MACHMER, U.S. ARMY: I left for Kuwait in February of 2003. I was again assaulted in March by an NCO, a Master Sergeant Max Riddle (ph). There was no way I could file away another violation, a sexual violation to myself, so I went and I reported it within a half hour. The aftermath of reporting it has been terrifying.

(END VIDEO CLIP)

PHILLIPS: And the stories don't stop there. Representative Carolyn Maloney joins us now from Washington where she has been hearing disturbing testimony today. Representative, thanks for being with us and I've got to ask you critics are saying what took so long?

REP. CAROLYN MALONEY (D), NEW YORK: Well, we're asking the same thing. I documented since 1988 there have been 18 reports from the Department of Defense and others on what to do about sexual misconduct in the military, yet there has been little or no action. That's more than one -- 16 -- that's more than one report a year.

And in 1997 after Aberdeen, I offered a bill asking for yet another report. They reported back in 1999 with specific actions, none of which have been implemented and I am sending a letter today, along with my colleagues, to Secretary Rumsfeld asking for a meeting on what has been done and what are they doing?

What the captain reported is that if you are a woman in the military and you're raped you will probably be discharged but if you are a man in the military and rape a colleague you get a transfer and you just might get a promotion.

PHILLIPS: I got to tell you Representative Maloney I listened to all the testimony. Being overseas I've even heard a number of stories myself. I've got to ask you as this is finally coming to the forefront, it's even been on the front of the "New York Times" a few times some articles, do you think this is finally being taken seriously or are there still tremendous gaps in the system and is this a good old boys network still to this date?

MALONEY: There are obviously tremendous gaps in the system. It has always been taken seriously I would say by every American, by everyone in our country and yet nothing seems to happen. Nothing seems to take place.

I intend to legislate the recommendations from the last report in 1999 from the Department of Defense that came forward with specific recommendations, an independent office for sex offenses in every branch of the military, civilians and military personnel being used to review the cases, privacy concerns and others that have been raised in reports and raised before Congress today.

PHILLIPS: Well, with regard to the military truly listening and making changes, let's listen to what the victim Jennifer Machmer had to say during testimony today.

(BEGIN VIDEO CLIP)

MACHMER: I would have to definitely say it starts with punishing them accordingly. Scare these other perpetrators in knowing that they will be punished. They will lose their career. They will lose everything they have. They may lose their spouse. Their financial situation may be destroyed. Their friends may turn their backs on them. Let them feel the pain the victims have felt.

(END VIDEO CLIP)

PHILLIPS: Representative Maloney will changes be made and is the Pentagon listening to you?

MALONEY: It needs to be treated as more than a slap on the wrist or a transfer. It was testified today that well over 127 credible cases have been reported to an independent organization, yet only 27 brought charges because they felt it would hinder their career, that they would be drummed out of the military because that's what they've seen happen to other victims.

We have brave men and women protecting us overseas, in our own country, and we need to make sure that they are protected from any type of disrespect or sexual assault from their colleagues. That's the least we can do for them.

PHILLIPS: Well, I have to ask you have you heard from an admiral, from a general, from the chief of staff? Have you heard from Donald Rumsfeld's office?

MALONEY: I have not heard from Donald Rumsfeld and this is the third letter that we have sent to him requesting a meeting. I hope that we will get a meeting on what they are doing. He says he will issue a report at the end of April. I hope it will include these recommendations.

But, Kyra, when I was in Iraq I did question several of the generals and they said they were treating it seriously, that they were reviewing every charge and responding to it.

We just need to put more attention on this and put more force behind it and certainly a woman who is raped should not be humiliated and discharged from the military while she sees her rapist promoted and transferred in many cases.

One woman reported that after the rape and after she testified about it that she had to salute her rapist. It's -- the stories that you hear are horrifying and they do not live up to the fine tradition of the great military of America.

PHILLIPS: Point well made. That's definitely a slap in the face. What happens now to Jennifer Machmer and these other women that have come forward?

MALONEY: Many of them report that they are humiliated and forced to leave the military. One woman reported that she testified about her rape incident. They then violated privacy rules and charged her with fraternization. The only way they had that information is because she gave that to them. So what women are seeing, or so they are telling us, is that if they report rape they're the ones that then become the victim and are punished again through a system that does not treat rape as a serious crime.

The FBI rates murder as the most serious crime. Second to murder is rape. Rape is a crime. It is a criminal offense. It should be treated as such. So far from the testimony we're hearing it's not treated seriously by the chain of command in the military.

PHILLIPS: And these are women that are fighting for our freedom right there alongside with the men. Representative Carolyn Maloney, I can promise you it's a story we won't let go. Thank you so much for your time today.

MALONEY: Thank you, Kyra. Thank you.

PHILLIPS: Well, a former prisoner is told she has to go back to jail after two years of freedom, the reason, a miscalculation but someone comes to the rescue with some new math. We're going to add it up straight ahead.

RHONDA SCHAFFLER, CNN FINANCIAL CORRESPONDENT: I'm Rhonda Schaffler in New York. One music giant is trimming his talent roster. Details on which acts may get canned with LIVE FROM jams on after this break.

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PHILLIPS: Now an update on that California woman who thought she completed her prison sentence two and a half years ago until the state revised the way it figured jail terms.

CNN's Frank Buckley says she may avoid a return to the slammer after all thanks to a certain former action hero.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice-over): The woman in the prison ID photo had changed. After seven years in prison and two and a half years of freedom, Pamela Martinez had a job and the respect of co-workers and friends.

PAMELA MARTINEZ, FORMER PRISONER: I've tried so hard to change my life around and now they're going to reduce me back to poverty status.

BUCKLEY: That was Pamela last week as she and her supporters asked California Governor Arnold Schwarzenegger for clemency. It was a long shot but it worked. Governor Schwarzenegger recommends to the California Supreme Court in this letter that her sentence be commuted to time served.

MARTINEZ: I mean the thought that the governor would actually consider this is like what kind of percentage is that? BUCKLEY: Pamela is taking it one step at a time. Monday's step to get a judge to stay her sentence to keep her out of prison for now. That smile on her face after the judge's ruling.

UNIDENTIFIED MALE: Thank you and good luck.

MARTINEZ: Thank you.

BUCKLEY: The California Supreme Court will now consider if Pamela Martinez has paid her debt to society, if seven years in prison is long enough for stealing a tool box, if 65 additional days are necessary.

MARTINEZ: It's step-by-step every day now, so, but hey I won't be sitting in prison tomorrow. Yes.

BUCKLEY: Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Other news around the world now, more violence in Uzbekistan earlier today. The capital city of Tashkent was rocked by an explosion. Officials say there are casualties but they're not sure if the blast is related to the current wave of terrorist violence in the central Asian nation. So far, more than 40 people have died in a series of attacks that began on Sunday.

In East Jerusalem, Palestinian demonstrators clashed with police and Jewish settlers who were trying to move into a predominantly Muslim neighborhood. Police fired teargas to break up the protests and later found a cache of Molotov cocktails on a rooftop. Six police were injured. Nine Palestinians were arrested.

In Berlin, representatives of more than 50 countries met with Afghan officials in a donor's conference. The AP reports the finance minister for war-torn Afghanistan says donors pledged $4.4 billion in aide over the next year.

Big shake-up at the big music company. Thousands of people singing the blues. Rhonda Schaffler live from the New York Stock Exchange with that -- Rhonda.

SCHAFFLER: Hi there, Kyra.

We're talking about EMI, the world's third biggest music company. It is home to, among others, the Rolling Stones and more recently (unintelligible). The company is slashing 1,500 workers and it's also trimming its artist roster. One in every five EMI artists is getting walking papers.

Mostly the talent being cut are described by the company as niche and under performing artists but the company is not naming any names. EMI also plans to outsource its CD and DVD manufacturing plants now in Europe and the U.S. including a factory in Illinois -- Kyra.

PHILLIPS: Rhonda, EMI slimming down but another big company just keeps on growing doesn't it?

SCHAFFLER: Yes, it's Starbuck's. Consumers apparently just can't get enough coffee. Starbuck's is now opening shops at a rate of about three and a half a day worldwide.

The company says that figure could increase. There are currently nearly 8,000 Starbuck's and the long term plan is to have at least 25,000. That stock, despite this news, trading slightly lower but, of course, the broader market also lagging today. The Dow Industrial Average off 17 points, the NASDAQ little change. That's the latest from Wall Street.

Later this hour, TV networks are talking censorship by telling parents about the tools they need to block certain shows from kids.

LIVE FROM continues right after this break.

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