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Rumsfeld: 'Excellent Progress' in Iraq, Afghanistan; More Patients Turning to Cash-Only Doctors

Aired June 04, 2004 - 14:00   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.


(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today's job report shows that the American economy is strong and it's getting stronger.

(END VIDEO CLIP)

KYRA PHILLIPS, CNN ANCHOR: President Bush pumped up about jobs at home while on the road in Rome. But Iraq steals the spotlight on this overseas trip.

CAROL LIN, CNN ANCHOR: Is coughing up the cash the key to getting treatment? A "back to the future" for American health care.

PHILLIPS: Canine carjacking. A thief drives away with a van load of family pets.

LIN: Are you too easy to figure out? What you need to know to keep scammers from nabbing your online passwords.

From the CNN Center in Atlanta, I'm Carol Lin in for Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN's LIVE FROM... starts right now.

We begin in Italy where President Bush is dealing with both extremes of European public opinion toward the Iraq war. The president's agenda including meetings with Pope John Paul II, a staunch opponent of the conflict, and the Italian prime minister, who supported it. We get details now from CNN's John King, he joins us live from Rome.

Hi, John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Hello, to you, Kyra. Dinner tonight with Prime Minister Berlusconi. Mr. Bush looking forward to that. He has had very warm, friendly relations with the Italian prime minister who, as you noted, is a big supporter of the war in Iraq and has sent some 2700 Italians to join the security forces there.

But Mr. Bush earlier today at the Vatican, he had about a 25- to 30-minute private meeting with Pope John Paul II, then the two leaders came into a larger room at the Vatican to deliver public statements. The pope making quite clear his opposition to the Iraq war, saying the Vatican's opposition to the war was unequivocal.

He spoke of grave unrest in Iraq at the moment, used the term "deplorable" in a reference to the prison abuses, the abuse of Iraqi prisoners by U.S. military personnel at the Abu Ghraib Prison in Iraq. Mr. Bush looking on as the pope said all this, did take solace in the fact that the pope did embrace the transition now to an interim Iraqi government that the United States has helped bring about.

Mr. Bush praising the pontiff at the Vatican. Obviously the pope opposed to the war in Iraq. Take a look on the streets of Rome this afternoon and you see more public opposition to this president of the United States and his policy of going to war in Iraq by the thousands, demonstrators on the streets in Rome voicing that opposition.

Still these protests largely peaceful. The Italian government had deployed some 10,000 police, worried that the protestors, the demonstrations would turn violent. Mr. Bush, knowing that the Iraq war will be an issue not only in his international diplomacy, but in the presidential campaign this November, took time to talk to reporters about another big issue in the campaign.

As the president traveled here, a new unemployment report came out back home in Washington showing the economy continuing to add jobs last month, four straight months of robust job growth.

The president quite happy.

(BEGIN VIDEO CLIP)

BUSH: Two hundred forty-eight thousand jobs for last month is good for the American workers. It shows that our economy is vital and growing. We've added 900,000 jobs over the last three months and 1.4 million jobs since last August. Policies in place are working. The entrepreneurial spirit is strong.

(END VIDEO CLIP)

KING: The White House believes the new jobless report helps to put to rest the criticism of Senator of John Kerry and other Democrats that Mr. Bush has presided over a downfall of the economy, and the president also hoping, Kyra, by the time he comes back from this trip to quiet Kerry's criticism that this president is not working closely enough with traditional allies like France and Germany when it comes to the future of Iraq.

PHILLIPS: John, when the pope came out and made his comments about the war in Iraq, how did the president react?

KING: The president sat there listening to his remarks. Now, we should be clear, it's very difficult to understand the 84-year-old pope these days. His speech is very halting, at times slurred. But the White House knew well in advance that the pope would again be critical of the war in Iraq. That he's vehemently opposed to it.

From the White House perspective, the most encouraging thing that happened today though was that the pope essentially gave his blessing to the political transition and the interim government now in place. He lectured Mr. Bush a little bit, saying there should be a speedy return of sovereignty in Iraq, but he also said that that new interim government put in place today, in part because of the president's pushing, was an encouraging step. So the White House will take solace in that, Kyra. And it assumed and it knew that the criticism was coming -- Kyra.

PHILLIPS: John King live from Rome, thanks -- Carol.

LIN: Well, early next week President Bush will have a chance to meet Iraq's new president, both are expected to be at the G-8 summit. Today Iraq's prime minister took to the airwaves calling for unity and patience.

CNN's Harris Whitbeck has that from Baghdad.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT: Iraq's interim prime minister, Iyad Allawi, delivered his first televised address to the Iraqi people Friday afternoon, asking them for unity and for support. Allawi said he envisions a strong and more democratic Iraq after June 30, but he said foreign troops will have to remain in Iraq under U.S. command for some time in order to stabilize the country and to deal with serious security issues.

He called for an end to the insurgent attacks that have, he said, affected Iraq's economic infrastructure. And he reminded Iraqis that coalition forces have also died as a result of the terrorist attacks that are designed to force them out of the country. Just this Friday, an attack on a U.S. military convoy left at least four soldiers dead and five wounded. Eyewitnesses said a military Humvee was attacked with a rocket-propelled grenade.

But in the embattled holy city of Najaf, the provisional governor said U.S. military operations will be reduced. The governor said U.S. patrols will be replaced by the Iraqi national police. And the governor said both U.S. military forces and Shiite militias have agreed to withdraw from both Najaf and the nearby city of Kufa where intense fighting has been raging for several weeks.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Another high-profile resignation at the CIA. Deputy Director James Pavitt is leaving after over saying all the agency's covert operations for the past five years. Sources say that Pavitt decided to retire weeks ago, long before CIA chief George Tenet announced that he was going to be leaving.

Big question at the CIA now is whether George Tenet's successor will have better success addressing America's intelligence needs. CNN's Tom Foreman takes a look at the challenges facing that agency.

(BEGIN VIDEOTAPE) TOM FOREMAN, CNN CORRESPONDENT (voice-over): The still unfound weapons of mass destruction, the testing of nuclear weapons by Pakistan and India, the rise of Osama bin Laden and the way he has eluded capture, all are events that have raised the question, should the CIA have been better informed? Peter Earnest is a 36-year veteran of the CIA and now head of the International Spy Museum.

PETER EARNEST, FORMER CIA OFFICER: The answer is simple. Yes, that's what an intelligent service capability is. It's the capability of perceiving threat, of identifying it, of analyzing it, of making policy makers aware of it. Clearly, we did not.

FOREMAN: Tenet himself made it clear he was concerned about spy capabilities, particularly in the Arab world.

(on camera): Although the CIA will not release specifics, under Tenet more Arabic-speaking officers were recruited, more cooperative agreements were struck with foreign intelligent services.

(voice-over): But spying on governments which the CIA was made for, and learning what small individual terrorist groups are planning are wildly different things.

RONALD KESSLER, AUTHOR, "INSIDE THE CIA": The really hard thing is how do you get the information in the first place, how do you convince someone to rat on someone like bin Laden? That is so difficult and that just requires years of work, patience, money.

FOREMAN: Adding to the problem, according to some Arab- Americans, is a basic cultural gap.

JAMES ZOGBY, ARAB AMERICAN INSTITUTE: We see Arabs as an objectified problem. We see the culture as less than ours. We see them as more violent than we are.

FOREMAN (on camera): And you think that makes it hard to gather intelligence.

ZOGBY: Very hard. I think very hard. It makes us very susceptible, very prone to bad intelligence.

FOREMAN (voice-over): And fixing that problem, by all accounts, could take a very long time.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

LIN: Now to the global war on terror. There are new concerns that al Qaeda may step up attacks as the deadline for the handover in Iraq approaches. Defense Secretary Donald Rumsfeld sat down with our Maria Ressa on board the USS Essex.

(BEGIN VIDEOTAPE)

MARIA RESSA, CNN CORRESPONDENT: Who is winning the global war on terror now?

DONALD RUMSFELD, DEFENSE SECRETARY: Well, it's a tough question. It's certainly in the central front of this global war on terrorism, in Iraq and Afghanistan, we're making excellent progress. The other side of that coin is, what's happening in terms of more terrorists coming into the various organizations and networks?

And, of course, there are schools that are teaching people to go out and kill innocent men, women, and children. And it's hard to know how many there are. We know that we're stopping some funds that go into terrorist organizations, but you don't know what you don't know. So you don't know if there is a lot more funding coming in.

RESSA: You said things are going well in Iraq.

RUMSFELD: They are.

RESSA: Many in Southeast Asia believe that the U.S. did the wrong thing in Iraq and that it squandered away resources and good will that could be better used for al Qaeda. How do you respond to sentiments like that?

RUMSFELD: Well, you really can't. I mean, people have different views. The fact of the matter is that there is Zarqawi network in Iraq is a serious network, it's a global network, it's increasingly active in other parts of the world. And the al Qaeda are still active in Iraq.

RESSA: Some critics say that Iraq has just become a magnet for al Qaeda after the U.S. had gone in.

RUMSFELD: It clearly is an area where they are focusing at the present time. There's a major effort going on right now because of the United States' decision to pass sovereignty to the Iraqis. And we've intercepted letters where they have indicated that they recognize that it's harder for them once the Iraqis, again, are managing their own country. So I expect to see that they'll continue to put the heat on during this period.

RESSA: Is the danger greater in this time period leading up to the handover?

RUMSFELD: Possibly. But the coalition can't get beat on the battlefield.

RESSA: You've been a lightning rod for the things that have gone wrong. Looking back on it, do you have any regrets in the way you tackled Iraq and the war on terror?

RUMSFELD: Well, you know, it's probably the first war we've had where the -- we've had to live with 24-hour news, seven days a week. And, you know, we're celebrating the 60th anniversary of Normandy this week. If you think of trying to conduct the Normandy invasion with 24-hour news, seven days a week, with all the critics in the world watching what was happening, seeing the gliders land in the wrong place, seeing people be killed, seeing the troops stuck at the bottom of Point Du Hoc, they would have been just blaming General Eisenhower to a fare-thee-well, calling him back for congressional hearings, second-guessing him on this, second-guessing him on that. That's the nature of the world we live in. And you know if you do something, somebody's not going to like it. Therefore, you've got a choice. You can go do nothing or you can go do something and live with the fact that somebody's not going to like it.

RESSA: The distrust of the United States, anti-American sentiment has increased in this region as well as in other parts of the world. And that seems to have increased even more after the prison scandal. Has that affected the U.S.'s ability to lead a global war on terror?

RUMSFELD: I think that there is a focused, precise, directed campaign against the United States in the media in parts of the world that is unhelpful to us but that we'll survive.

(END VIDEOTAPE)

LIN: Donald Rumsfeld will be the keynote speaker tomorrow at the annual meeting of Asian and Pacific defense ministers in Singapore.

Well, a heartbreak for pet lovers. A van full of dogs driven away by a carjacker, but police were hot on the trail. We're going to show you what happened just ahead on LIVE FROM...

And what is your password? You may be making it too easy for con artists to get your most valuable information.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You're looking at a sight no man has seen before or since.

(END VIDEO CLIP)

LIN: Remembering the day that forever changed the history of the world. Sixty years after D-Day.

(COMMERCIAL BREAK)

LIN: Time for news across America. What happened inside the planes hijacked on September 11? The families of those who died aboard the four doomed airliners are learning more about those moments. They're hearing tapes of phone calls made by the hijack victims in their last minutes alive. Family members are also seeing other government evidence at two closed-door meetings. One is being held today in Princeton, New Jersey. The other is scheduled next month in Boston.

And New York Mayor Michael Bloomberg says social promotion must end in city schools. That means thousands of third graders could be held back this year. The Department of Education says they didn't pass citywide reading and math exams.

PHILLIPS: It was the case of the hijacked canines. In San Francisco police were hot on the trail, followed closely by heartbroken owners whose thought they had seen the last of their loveable pups.

Dan Kerman of affiliate station KRON in San Francisco followed the action.

(BEGIN VIDEOTAPE)

JENNIFER ASHBURN, DOG WALKER: I've been walking most of them for about a year. They're super sweet. None of them -- you know, they love each other.

DAN KERMAN, KRON REPORTER (voice-over): Dog walker Jennifer Ashburn was beside herself. At 1:30 she parked her van outside Pets Unlimited Pacific Heights, went inside to pick up this dog. And when she returned, the van was gone and so were 11 dogs.

ASHBURN: Most of my owners don't have children. These are their children. And I just -- I feel horrible.

KERMAN: Word of the canine kidnapping spread like wildfire.

HOSA COMPEAN, DOG OWNER: And she's our baby. And we don't have any children. And she means the world to us. So when we heard this, it's like an abduction of your kid.

KERMAN: Dog owners started showing up, crying, hugging and comforting each other.

CORINA NURIMBA, DOG OWNER: I won't feel safe leaving Samson anywhere anymore, I mean, if we do ever find him. I hope we do.

MICHAEL CHIN, DOG OWNER: We've had him since September and he's really part of the family right now. So, yes, it's quite terrible,

KERMAN: Michael Chin couldn't sit still. He got in his car and crisscrossed the city, down Fillmore to the Castro to the Haight and into Golden Gate Park and nothing. The situation looked hopeless but this canine caper has a happy ending. At 5:15, the Toyota Previa was spotted in the Tenderloin. Dog owners rushed to the scene not even knowing if the dogs were still in the van.

UNIDENTIFIED FEMALE: Hi, baby.

KERMAN: But they were, and despite needing to stretch their legs, they were no worse for the wear. And then a reunion that you can only see to believe.

UNIDENTIFIED FEMALE: It's a great ending to a really bad afternoon. So we're really thrilled to have Lenny (ph) back.

(END VIDEOTAPE)

PHILLIPS: But he's happy.

Straight ahead. It's a health care option that more Americans are choosing, ditching their insurance and paying cash. Is it right for you? A live report straight ahead.

(COMMERCIAL BREAK)

(MARKET REPORT)

PHILLIPS: Frustration over the nation's health care system is rising almost as fast as the cost. Now some doctors and patients are opting out of traditional insurance plans and turning to a cash payment system, it may be simpler and less expensive but it's not without risks.

CNN's Chris Huntington joins us now from New York with the details -- Chris.

CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Kyra, well, some of the doctors that are doing this basically going to cash-only system say it sort of hearkens back to a Norman Rockwell-type era. It's all designed to cut costs and cut the hassle of healthcare.

(BEGIN VIDEOTAPE)

HUNTINGTON (voice-over): Long waits and short visits at the doctor's office seem to be making everyone sick. Dr. Levi Lehv is as fed up as his patients and he blames the health insurance system.

DR. LEVI LEHV, CASH-ONLY DOCTOR: The reimbursements are very small. And in order for you to see -- to make a decent living you have to see a lot of patients.

HUNTINGTON: So the Dr. Lehv is taking matters into his own hands. He's one of a growing number of doctors who are opting out of the traditional insurance system and seeing patients who pay in cash, no reimbursements. Dr. Vern Cherewatenko is a pioneer of the so- called cash model and runs as program called Simple Care. It's a nationwide network of more than 1500 doctors.

DR. VERN CHEREWATENKO, CASH-ONLY DOCTOR: We created Simple Care, an educational program both for the physicians and the health care providers to learn how to implement cash-based practices in their office.

HUNTINGTON: Dr. Vern says the cash model eliminates much of the costly paperwork typical of most insurance plans and allows doctors to pass the savings on to patients. That's an immediate benefit, especially to those with no insurance.

FRED WILSON, UNINSURED PATIENT: Because I'm paying, per visit a lot less. And that's attractive to me. The bottom line is being self-employed, you have to really look at the checks and balances.

HUNTINGTON: But critics point out when routine visits turn into something more serious, the costs rise quickly.

DR. ROBERT BERENSON, URBAN INSTITUTE: A simple example of the $50 sore throat gets much more complicated if the doctor were to recommend, say, an MRI scan and that might cost $600 or $800. HUNTINGTON: To reduce that risk, advocates of the cash system advise patients to carry catastrophic insurance for emergencies. But as the cost of comprehensive health insurance continues to rise, the idea of opting out and paying cash becomes more tempting.

CHEREWATENKO: We are definitely changing to a cash-based health care system, whether people want to acknowledge that or not, this system is coming, it's coming fast.

(END VIDEOTAPE)

HUNTINGTON: Now, there has been a recent change to Federal Medical Savings Accounts which allows folks to roll over the money that they have not used in a given year to the following year. It used to be, use it or lose it. And that wasn't attractive because you never really could be quite sure of how many medical expenses you would run up in a given year.

But now that you can roll over that account, the notion of going to a cash system, particularly for routine visits and low-impact ailments, if you will, is quite appealing. The bottom line here is make sure if you can get it in your state to have catastrophic insurance. You just don't want to be caught with a very serious ailment on a cash-only system -- Kyra.

PHILLIPS: Good advice. Chris Huntington, thanks so much.

Well, for more health news, you can always log on to cnn.com/health. More LIVE FROM... right after a quick break.

(COMMERCIAL BREAK)

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


Aired June 4, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today's job report shows that the American economy is strong and it's getting stronger.

(END VIDEO CLIP)

KYRA PHILLIPS, CNN ANCHOR: President Bush pumped up about jobs at home while on the road in Rome. But Iraq steals the spotlight on this overseas trip.

CAROL LIN, CNN ANCHOR: Is coughing up the cash the key to getting treatment? A "back to the future" for American health care.

PHILLIPS: Canine carjacking. A thief drives away with a van load of family pets.

LIN: Are you too easy to figure out? What you need to know to keep scammers from nabbing your online passwords.

From the CNN Center in Atlanta, I'm Carol Lin in for Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. This hour of CNN's LIVE FROM... starts right now.

We begin in Italy where President Bush is dealing with both extremes of European public opinion toward the Iraq war. The president's agenda including meetings with Pope John Paul II, a staunch opponent of the conflict, and the Italian prime minister, who supported it. We get details now from CNN's John King, he joins us live from Rome.

Hi, John.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Hello, to you, Kyra. Dinner tonight with Prime Minister Berlusconi. Mr. Bush looking forward to that. He has had very warm, friendly relations with the Italian prime minister who, as you noted, is a big supporter of the war in Iraq and has sent some 2700 Italians to join the security forces there.

But Mr. Bush earlier today at the Vatican, he had about a 25- to 30-minute private meeting with Pope John Paul II, then the two leaders came into a larger room at the Vatican to deliver public statements. The pope making quite clear his opposition to the Iraq war, saying the Vatican's opposition to the war was unequivocal.

He spoke of grave unrest in Iraq at the moment, used the term "deplorable" in a reference to the prison abuses, the abuse of Iraqi prisoners by U.S. military personnel at the Abu Ghraib Prison in Iraq. Mr. Bush looking on as the pope said all this, did take solace in the fact that the pope did embrace the transition now to an interim Iraqi government that the United States has helped bring about.

Mr. Bush praising the pontiff at the Vatican. Obviously the pope opposed to the war in Iraq. Take a look on the streets of Rome this afternoon and you see more public opposition to this president of the United States and his policy of going to war in Iraq by the thousands, demonstrators on the streets in Rome voicing that opposition.

Still these protests largely peaceful. The Italian government had deployed some 10,000 police, worried that the protestors, the demonstrations would turn violent. Mr. Bush, knowing that the Iraq war will be an issue not only in his international diplomacy, but in the presidential campaign this November, took time to talk to reporters about another big issue in the campaign.

As the president traveled here, a new unemployment report came out back home in Washington showing the economy continuing to add jobs last month, four straight months of robust job growth.

The president quite happy.

(BEGIN VIDEO CLIP)

BUSH: Two hundred forty-eight thousand jobs for last month is good for the American workers. It shows that our economy is vital and growing. We've added 900,000 jobs over the last three months and 1.4 million jobs since last August. Policies in place are working. The entrepreneurial spirit is strong.

(END VIDEO CLIP)

KING: The White House believes the new jobless report helps to put to rest the criticism of Senator of John Kerry and other Democrats that Mr. Bush has presided over a downfall of the economy, and the president also hoping, Kyra, by the time he comes back from this trip to quiet Kerry's criticism that this president is not working closely enough with traditional allies like France and Germany when it comes to the future of Iraq.

PHILLIPS: John, when the pope came out and made his comments about the war in Iraq, how did the president react?

KING: The president sat there listening to his remarks. Now, we should be clear, it's very difficult to understand the 84-year-old pope these days. His speech is very halting, at times slurred. But the White House knew well in advance that the pope would again be critical of the war in Iraq. That he's vehemently opposed to it.

From the White House perspective, the most encouraging thing that happened today though was that the pope essentially gave his blessing to the political transition and the interim government now in place. He lectured Mr. Bush a little bit, saying there should be a speedy return of sovereignty in Iraq, but he also said that that new interim government put in place today, in part because of the president's pushing, was an encouraging step. So the White House will take solace in that, Kyra. And it assumed and it knew that the criticism was coming -- Kyra.

PHILLIPS: John King live from Rome, thanks -- Carol.

LIN: Well, early next week President Bush will have a chance to meet Iraq's new president, both are expected to be at the G-8 summit. Today Iraq's prime minister took to the airwaves calling for unity and patience.

CNN's Harris Whitbeck has that from Baghdad.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT: Iraq's interim prime minister, Iyad Allawi, delivered his first televised address to the Iraqi people Friday afternoon, asking them for unity and for support. Allawi said he envisions a strong and more democratic Iraq after June 30, but he said foreign troops will have to remain in Iraq under U.S. command for some time in order to stabilize the country and to deal with serious security issues.

He called for an end to the insurgent attacks that have, he said, affected Iraq's economic infrastructure. And he reminded Iraqis that coalition forces have also died as a result of the terrorist attacks that are designed to force them out of the country. Just this Friday, an attack on a U.S. military convoy left at least four soldiers dead and five wounded. Eyewitnesses said a military Humvee was attacked with a rocket-propelled grenade.

But in the embattled holy city of Najaf, the provisional governor said U.S. military operations will be reduced. The governor said U.S. patrols will be replaced by the Iraqi national police. And the governor said both U.S. military forces and Shiite militias have agreed to withdraw from both Najaf and the nearby city of Kufa where intense fighting has been raging for several weeks.

Harris Whitbeck, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Another high-profile resignation at the CIA. Deputy Director James Pavitt is leaving after over saying all the agency's covert operations for the past five years. Sources say that Pavitt decided to retire weeks ago, long before CIA chief George Tenet announced that he was going to be leaving.

Big question at the CIA now is whether George Tenet's successor will have better success addressing America's intelligence needs. CNN's Tom Foreman takes a look at the challenges facing that agency.

(BEGIN VIDEOTAPE) TOM FOREMAN, CNN CORRESPONDENT (voice-over): The still unfound weapons of mass destruction, the testing of nuclear weapons by Pakistan and India, the rise of Osama bin Laden and the way he has eluded capture, all are events that have raised the question, should the CIA have been better informed? Peter Earnest is a 36-year veteran of the CIA and now head of the International Spy Museum.

PETER EARNEST, FORMER CIA OFFICER: The answer is simple. Yes, that's what an intelligent service capability is. It's the capability of perceiving threat, of identifying it, of analyzing it, of making policy makers aware of it. Clearly, we did not.

FOREMAN: Tenet himself made it clear he was concerned about spy capabilities, particularly in the Arab world.

(on camera): Although the CIA will not release specifics, under Tenet more Arabic-speaking officers were recruited, more cooperative agreements were struck with foreign intelligent services.

(voice-over): But spying on governments which the CIA was made for, and learning what small individual terrorist groups are planning are wildly different things.

RONALD KESSLER, AUTHOR, "INSIDE THE CIA": The really hard thing is how do you get the information in the first place, how do you convince someone to rat on someone like bin Laden? That is so difficult and that just requires years of work, patience, money.

FOREMAN: Adding to the problem, according to some Arab- Americans, is a basic cultural gap.

JAMES ZOGBY, ARAB AMERICAN INSTITUTE: We see Arabs as an objectified problem. We see the culture as less than ours. We see them as more violent than we are.

FOREMAN (on camera): And you think that makes it hard to gather intelligence.

ZOGBY: Very hard. I think very hard. It makes us very susceptible, very prone to bad intelligence.

FOREMAN (voice-over): And fixing that problem, by all accounts, could take a very long time.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

LIN: Now to the global war on terror. There are new concerns that al Qaeda may step up attacks as the deadline for the handover in Iraq approaches. Defense Secretary Donald Rumsfeld sat down with our Maria Ressa on board the USS Essex.

(BEGIN VIDEOTAPE)

MARIA RESSA, CNN CORRESPONDENT: Who is winning the global war on terror now?

DONALD RUMSFELD, DEFENSE SECRETARY: Well, it's a tough question. It's certainly in the central front of this global war on terrorism, in Iraq and Afghanistan, we're making excellent progress. The other side of that coin is, what's happening in terms of more terrorists coming into the various organizations and networks?

And, of course, there are schools that are teaching people to go out and kill innocent men, women, and children. And it's hard to know how many there are. We know that we're stopping some funds that go into terrorist organizations, but you don't know what you don't know. So you don't know if there is a lot more funding coming in.

RESSA: You said things are going well in Iraq.

RUMSFELD: They are.

RESSA: Many in Southeast Asia believe that the U.S. did the wrong thing in Iraq and that it squandered away resources and good will that could be better used for al Qaeda. How do you respond to sentiments like that?

RUMSFELD: Well, you really can't. I mean, people have different views. The fact of the matter is that there is Zarqawi network in Iraq is a serious network, it's a global network, it's increasingly active in other parts of the world. And the al Qaeda are still active in Iraq.

RESSA: Some critics say that Iraq has just become a magnet for al Qaeda after the U.S. had gone in.

RUMSFELD: It clearly is an area where they are focusing at the present time. There's a major effort going on right now because of the United States' decision to pass sovereignty to the Iraqis. And we've intercepted letters where they have indicated that they recognize that it's harder for them once the Iraqis, again, are managing their own country. So I expect to see that they'll continue to put the heat on during this period.

RESSA: Is the danger greater in this time period leading up to the handover?

RUMSFELD: Possibly. But the coalition can't get beat on the battlefield.

RESSA: You've been a lightning rod for the things that have gone wrong. Looking back on it, do you have any regrets in the way you tackled Iraq and the war on terror?

RUMSFELD: Well, you know, it's probably the first war we've had where the -- we've had to live with 24-hour news, seven days a week. And, you know, we're celebrating the 60th anniversary of Normandy this week. If you think of trying to conduct the Normandy invasion with 24-hour news, seven days a week, with all the critics in the world watching what was happening, seeing the gliders land in the wrong place, seeing people be killed, seeing the troops stuck at the bottom of Point Du Hoc, they would have been just blaming General Eisenhower to a fare-thee-well, calling him back for congressional hearings, second-guessing him on this, second-guessing him on that. That's the nature of the world we live in. And you know if you do something, somebody's not going to like it. Therefore, you've got a choice. You can go do nothing or you can go do something and live with the fact that somebody's not going to like it.

RESSA: The distrust of the United States, anti-American sentiment has increased in this region as well as in other parts of the world. And that seems to have increased even more after the prison scandal. Has that affected the U.S.'s ability to lead a global war on terror?

RUMSFELD: I think that there is a focused, precise, directed campaign against the United States in the media in parts of the world that is unhelpful to us but that we'll survive.

(END VIDEOTAPE)

LIN: Donald Rumsfeld will be the keynote speaker tomorrow at the annual meeting of Asian and Pacific defense ministers in Singapore.

Well, a heartbreak for pet lovers. A van full of dogs driven away by a carjacker, but police were hot on the trail. We're going to show you what happened just ahead on LIVE FROM...

And what is your password? You may be making it too easy for con artists to get your most valuable information.

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UNIDENTIFIED MALE: You're looking at a sight no man has seen before or since.

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LIN: Remembering the day that forever changed the history of the world. Sixty years after D-Day.

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LIN: Time for news across America. What happened inside the planes hijacked on September 11? The families of those who died aboard the four doomed airliners are learning more about those moments. They're hearing tapes of phone calls made by the hijack victims in their last minutes alive. Family members are also seeing other government evidence at two closed-door meetings. One is being held today in Princeton, New Jersey. The other is scheduled next month in Boston.

And New York Mayor Michael Bloomberg says social promotion must end in city schools. That means thousands of third graders could be held back this year. The Department of Education says they didn't pass citywide reading and math exams.

PHILLIPS: It was the case of the hijacked canines. In San Francisco police were hot on the trail, followed closely by heartbroken owners whose thought they had seen the last of their loveable pups.

Dan Kerman of affiliate station KRON in San Francisco followed the action.

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JENNIFER ASHBURN, DOG WALKER: I've been walking most of them for about a year. They're super sweet. None of them -- you know, they love each other.

DAN KERMAN, KRON REPORTER (voice-over): Dog walker Jennifer Ashburn was beside herself. At 1:30 she parked her van outside Pets Unlimited Pacific Heights, went inside to pick up this dog. And when she returned, the van was gone and so were 11 dogs.

ASHBURN: Most of my owners don't have children. These are their children. And I just -- I feel horrible.

KERMAN: Word of the canine kidnapping spread like wildfire.

HOSA COMPEAN, DOG OWNER: And she's our baby. And we don't have any children. And she means the world to us. So when we heard this, it's like an abduction of your kid.

KERMAN: Dog owners started showing up, crying, hugging and comforting each other.

CORINA NURIMBA, DOG OWNER: I won't feel safe leaving Samson anywhere anymore, I mean, if we do ever find him. I hope we do.

MICHAEL CHIN, DOG OWNER: We've had him since September and he's really part of the family right now. So, yes, it's quite terrible,

KERMAN: Michael Chin couldn't sit still. He got in his car and crisscrossed the city, down Fillmore to the Castro to the Haight and into Golden Gate Park and nothing. The situation looked hopeless but this canine caper has a happy ending. At 5:15, the Toyota Previa was spotted in the Tenderloin. Dog owners rushed to the scene not even knowing if the dogs were still in the van.

UNIDENTIFIED FEMALE: Hi, baby.

KERMAN: But they were, and despite needing to stretch their legs, they were no worse for the wear. And then a reunion that you can only see to believe.

UNIDENTIFIED FEMALE: It's a great ending to a really bad afternoon. So we're really thrilled to have Lenny (ph) back.

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PHILLIPS: But he's happy.

Straight ahead. It's a health care option that more Americans are choosing, ditching their insurance and paying cash. Is it right for you? A live report straight ahead.

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PHILLIPS: Frustration over the nation's health care system is rising almost as fast as the cost. Now some doctors and patients are opting out of traditional insurance plans and turning to a cash payment system, it may be simpler and less expensive but it's not without risks.

CNN's Chris Huntington joins us now from New York with the details -- Chris.

CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Kyra, well, some of the doctors that are doing this basically going to cash-only system say it sort of hearkens back to a Norman Rockwell-type era. It's all designed to cut costs and cut the hassle of healthcare.

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HUNTINGTON (voice-over): Long waits and short visits at the doctor's office seem to be making everyone sick. Dr. Levi Lehv is as fed up as his patients and he blames the health insurance system.

DR. LEVI LEHV, CASH-ONLY DOCTOR: The reimbursements are very small. And in order for you to see -- to make a decent living you have to see a lot of patients.

HUNTINGTON: So the Dr. Lehv is taking matters into his own hands. He's one of a growing number of doctors who are opting out of the traditional insurance system and seeing patients who pay in cash, no reimbursements. Dr. Vern Cherewatenko is a pioneer of the so- called cash model and runs as program called Simple Care. It's a nationwide network of more than 1500 doctors.

DR. VERN CHEREWATENKO, CASH-ONLY DOCTOR: We created Simple Care, an educational program both for the physicians and the health care providers to learn how to implement cash-based practices in their office.

HUNTINGTON: Dr. Vern says the cash model eliminates much of the costly paperwork typical of most insurance plans and allows doctors to pass the savings on to patients. That's an immediate benefit, especially to those with no insurance.

FRED WILSON, UNINSURED PATIENT: Because I'm paying, per visit a lot less. And that's attractive to me. The bottom line is being self-employed, you have to really look at the checks and balances.

HUNTINGTON: But critics point out when routine visits turn into something more serious, the costs rise quickly.

DR. ROBERT BERENSON, URBAN INSTITUTE: A simple example of the $50 sore throat gets much more complicated if the doctor were to recommend, say, an MRI scan and that might cost $600 or $800. HUNTINGTON: To reduce that risk, advocates of the cash system advise patients to carry catastrophic insurance for emergencies. But as the cost of comprehensive health insurance continues to rise, the idea of opting out and paying cash becomes more tempting.

CHEREWATENKO: We are definitely changing to a cash-based health care system, whether people want to acknowledge that or not, this system is coming, it's coming fast.

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HUNTINGTON: Now, there has been a recent change to Federal Medical Savings Accounts which allows folks to roll over the money that they have not used in a given year to the following year. It used to be, use it or lose it. And that wasn't attractive because you never really could be quite sure of how many medical expenses you would run up in a given year.

But now that you can roll over that account, the notion of going to a cash system, particularly for routine visits and low-impact ailments, if you will, is quite appealing. The bottom line here is make sure if you can get it in your state to have catastrophic insurance. You just don't want to be caught with a very serious ailment on a cash-only system -- Kyra.

PHILLIPS: Good advice. Chris Huntington, thanks so much.

Well, for more health news, you can always log on to cnn.com/health. More LIVE FROM... right after a quick break.

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