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Senate Intelligence Committee: CIA Slowing Release Report Critical to Agency; Task of Rebuilding Iraq Appears Daunting

Aired June 14, 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.


BETTY NGUYEN, CNN ANCHOR: The chairman of the Senate Intelligence Committee is accusing the CIA of slowing the release of a report critical to the agency. The committee examined U.S. intelligence problems prior to the Iraq War, focusing on the failure to find weapons of mass destruction. The CIA is vetting the report cutting out classified information.
(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R-KS), INTELLIGENCE CHAIRMAN: They were supposed to have that back to us in two weeks. Then three. Then it's now four.

And I'm now learning from staff that some reporters are actually saying that there's some information from the CIA saying there's going to be further delays.

(END VIDEO CLIP)

NGUYEN: The report comes just after the announcement CIA Director George Tenet is stepping down next month.

With the handover just about two weeks away, the task of rebuilding Iraq appears daunting as CNN's Zain Verjee reports.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN CORRESPONDENT (voice-over): How do you rebuild a shattered country in the midst of suicide bombings, assassinations, abductions and a guerrilla war? Push on with reconstruction efforts in spite of the violence, say some. Give Iraqis a stake in their future, build roads, restore electricity, the flow of water, win hearts and minds and the violence will inevitably ebb away. But senior World Bank Officials say any development will be limited and slow if the security situation isn't stabilized first.

Foreign civilian workers are marked men, targeted for kidnapping or murdered by insurgents. Iraqis involved in reconstruction efforts themselves are fearful they, too, are targets.

American administration officials concede security will get worse before it gets better.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: The real goal, the real focus should be on training Iraqis to take care of their own security needs. And what we're going to be doing is urging our international partners to participate in both efforts to help the Iraqis become more capable.

VERJEE: Some contractors and aid agencies pulled out their workers from Iraq. Those still operating spend much money on staffed protection and security, money that could have been spent on projects themselves.

The hope was for Iraqi oil to pay for the cost of reconstruction. But militants continue to sabotage crucial oil pipelines, delaying the flow of oil from Iraq.

An interim government's preparing to assume all but military power in two weeks from U.S.-led occupation forces. But it inherits an insurgency committed to creating chaos by sabotaging reconstruction plans and one that increasingly appears determined to kill the very men that would play a crucial role in rebuilding Iraq.

Zain Verjee, CNN, Atlanta.

(END VIDEOTAPE)

MILES O'BRIEN, CNN ANCHOR: A suspected terrorist with a million- dollar price on his head has been turned over to Pakistani intelligence. He's described as a close associate of Khalid Sheikh Mohammed, suspected mastermind of the 9/11 attacks. He was capture along with eight other suspected al Qaeda terrorists in Pakistan yesterday, we're told.

Pakistan today ended a five-day military operation aimed at attacking al Qaeda suspects along the Afghan border. The U.S. military praises the operation but says no major leaders were company captured.

NGUYEN: The wave of attacks on westerners is intensifying in Saudi Arabia. The U.S. ambassador says the Saudi government is doing all it can to locate Paul Johnson, an American contractor kidnapped by Islamic militants. Now that follows the killings of two Americans and an Irish TV cameraman along with the wounding of his British colleague.

With a look at the rise of terror attacks in the Saudi kingdom, we want to turn now to defense and foreign policy analyst David Isby in Washington. Thanks for being with us.

DAVID ISBY, DEFENSE AND FOREIGN POLICY ANALYST: Good afternoon.

NGUYEN: First off, All fingers are pointing to al Qaeda. But how convinced are you that these attacks are the work of al Qaeda?

ISBY: Well it's usually "attributed to" or "linked to," are the phrases used if you'll look at the report. Indeed, we don't seem to have a great deal known about how al Qaeda is functioning inside Saudi Arabia. This has been in the past an area where they haven't launched terrorist activity. So the fact that they're now doing it here is, indeed, a change.

NGUYEN: Right, because where they're launching this activity is on soft targets, namely Americans in residential neighborhoods. Why is that?

ISBY: Well, that's -- in some ways it's been what al Qaeda's been doing since 9/11. If you look where they've been attacking -- Bali, Morocco, a synagogue in Tunisia, bank in Turkey -- these are not hard or military or well-defended targets.

So they look for soft targets. And indeed some people are concerned that if they strike the United States before this election they'll look for soft targets. They're easier and it allows them to show they're still in the game despite all the setbacks.

NGUYEN: But it's more than just killing Westerners. Tell us a little bit about the history here. This is deeply rooted in Saudi oil, is it not?

ISBY: It is. I mean Saudi Arabia gets its money through oil. The oil industry isn't going to function without Westerners there. And so it's very much attacking the economic lifeblood, not just of the West, but of the kingdom of Saudi Arabia.

NGUYEN: So how is Saudi Arabia cracking down on this? We've seen two Americans killed in the past week. There are 26 terror suspects on the Saudi list, only a handful have been caught.

ISBY: Yes. Certainly the Saudis have made an effort in the kingdom. Their are checkpoints, barbed wire, a very big show of security which is rare in a kingdom which prided itself in keeping things under control.

Perhaps more significance behind the scenes, there is now a major crackdown on the Islamic charities, non-governmental organizations that have been associated with funding terror worthwhile (ph). Many of these have been shut down, including that one headed by the Saudi minister of Islamic affairs.

So they are making more of an effort here than before. But there's still a long way to go.

NGUYEN: And you call it making more of an effort. But is enough being done by the Saudis?

ISBY: Certainly there is a step back for every two steps forward. I think one thing which may have brought the Saudis around was earlier this year attacks which ended up with Saudi dead.

And the Saudis have seen effective anti-terrorist campaigns before. They participated in one in Bahrain in the '80s and '90s, in which a terrorist threat was defeated.

But in the longer term, there is a threat to the nature of the Saudi state. What's going to be the future of Saudi Arabia? And one thing which greatly worrying them there is Iraq.

NGUYEN: And what's going to be the future of Westerners in Saudi Arabia? Because if they leave out of fear, the terrorists win. ISBY: Certainly. And that's one thing why they have to be careful with things like the U.S. State Department, the British evacuation of foreigners, British Airways reduction of their on the ground presence. This can lead to panic, lead to economic damage that could raise the price of oil and do more damage than any number of bombs.

So the terrorist, by his nature, seeks to create panic, seeks to create economic disruption beyond the range of his guns or bombs.

NGUYEN: Defense and foreign policy analyst David Isby, we thank you for your insight.

ISBY: Thank you.

O'BRIEN: News across America now. Flames at the doorstep. Crews managed to halt this stubborn California wildfire just a few feet away from half a dozen homes. Unfortunately the fire did swallow up one house and several other buildings as well as about 30 acres of farmland.

A blaze that started as a campfire is out of control in New Mexico. It burned more than 1,000 acres at the Cibola National Forest. Firefighters burned about 1,000 more to get potentially combustible brush out of the way. A backfire they call it.

And a tornado touches down, blasting everything in its past. Look at this picture. Amazing video. Kids, don't try that at home. Comes from Kansas. At least half a dozen twisters ravaged the Wichita area over the weekend. Funnel clouds, flooding, brutal thunderstorms reported throughout the plains and Midwest leaving two dead. A house was destroyed in this image there.

Well how's the economy doing, you may ask? It's either rebounding or it's still in the dumper. How's that for covering the range? We try to cover all our bets here on LIVE FROM... We'll go in search of a more definitive answer for you.

And up next, we'll go live to Simi Valley. That's the California location of the Reagan Library. The public is getting its first chance to pay its respects at Ronald Reagan's beautiful final resting place. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: He was a shoulder to lean on and a strong hand to hold for Nancy Reagan last week. Major General Galen Jackman was also the man in charge of all of the ceremonies and services for Ronald Reagan's funeral. He spoke with "AMERICAN MORNING's" Bill Hemmer about the extraordinary week, and Nancy Reagan's reaction to the outpouring of support in Washington.

(BEGIN VIDEO CLIP)

MAJ. GEN. GALEN JACKMAN, COMMANDER, MILITARY DISTRICT OF WASHINGTON: I think that this was really the first time that Mrs. Reagan stepped out of the limousine in the midst of all of the people directly in the center of Washington D.C., and I think that it was a great homecoming, and she remarked throughout the week how much she was taken by the outpouring of support from this nation for her husband and for herself.

(END VIDEO CLIP)

O'BRIEN: All of the official rituals and remembrances for Ronald Reagan ended on Friday. It was an amazing week, wasn't it? And now the legions are Reagan admirers who did not rate an invitation to the ceremonies are heading to his grave site, the Reagan Presidential Library in California.

Our Thelma Gutierrez is talking with some of the mourners there in Simi Valley today.

Hello, Thelma.

THELMA GUTIERREZ, CNN CORRESPONDENT: Hi there, Miles.

Well, you're right, the parking lot out here has filled up. I can tell you that the shuttles will begin running soon, bringing people from down below up to the Reagan Library this morning. The doors actually opened up about 45 minutes ago. We talked to people who came from as far away as Des Moines, Iowa, and Denver. One woman who was in line was from the Philippines. They say that they just wanted to be among the first to actually have a chance to visit the grave site.

Now, the hours out here will be extended for the next 30 days, which is the official period of mourning, and then on July 4th, the library will open a new exhibit out here, which will feature the shell casings from the 21-gun salute, the beir on which the casket rested while the president lied in in repose, and also video highlights from last week's events, and uniforms from the Honor Guard.

Now Ron Kellish is from Denver. He took a day off from work, and he came specifically to be among the first to stand in that line.

You said that you went through just a few minutes ago and that it was a very moving experience for you.

RON KELLISH, LIBRARY VISITOR: It was moving, after -- especially after last week's events, all of the pomp and circumstances, and the pageantry, which was just, you know, incredible, and being able to just kind of go, you know, through the line and being able to see the interment is just you know, I don't know, just made it more very surreal, more very personal for me.

GUTIERREZ: You said that you had watched, you had followed all last week's events and that in many ways, this brought closure for you.

KELLISH: I think it did. It's -- you always want to, any time you see something with that much intense coverage, you just want to be there and I guess be a part of it, and this was, I guess, kind of my way of, like I was representing myself and my family, if you will, to be coming out here this weekend, and to be able to see something pretty incredible.

GUTIERREZ: Tomorrow you head back to Denver?

KELLISH: Actually we'll be heading back later today, yes.

GUTIERREZ: OK. Any reactions from some of the people that you saw here in line?

KELLISH: I think everybody -- it seemed like everybody felt the same way. I think it transcends all -- it seemed like it's transcended all political lines. People that I was talking to, not very involved very much with politics; others more actively involved with politics, and all just wanted to be here to see a, you know, a great president.

GUTIERREZ: All right, Ron Kellish, thank you very much.

KELLISH: Thank you.

GUTIERREZ: And, Miles, out here, there are also condolence books that people can sign. They're also leaving flowers as they walk past the grave site. And again, it is a pretty remarkable day up here. It's very bright, and on a clear day, you can see from that grave site out to the Pacific Ocean -- Miles.

KELLISH: A beautiful location. Thelma Gutierrez, thank you very much.

Just because you're 80 doesn't mean you have an excuse to sit around and watch TV. That's the message from former President George H.W. Bush, and he sends it out loud and clear. He underscored his point, and you'll see it here. There, that's how he did it. He jumped out of a perfectly good airplane, not just once, but twice yesterday, to mark his entering the octogenarian years.

One of them a tandem jump. As you see here, he's with no less than the Army's Golden Knights, the best in the business of falling.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There wasn't too much pressure. It was more like honor. The Army was definitely honored on its 229th birthday to help celebrate his 80th.

(END VIDEO CLIP)

Now these were Mr. Bush's fourth and fifth jumps, earning him his parachutist wings.

NGUYEN: Don't know how he does it. I can't even jump once. Too scared of that.

Well, we do have a live check of Wall Street. That is next.

Plus, he's conquered the skies. Now Richard Branson makes a name for himself at sea.

(COMMERCIAL BREAK)

O'BRIEN: Consumers are buying everything that isn't nailed down these days. That's what one economist says about today's strong retail sales report. But the recovery hasn't helped everyone. And some consumers remain nervous about the future. CNN's Kathleen Hays has been talking with some.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I feel a little bit of uneasiness.

UNIDENTIFIED MALE: With the economy as it is now I find myself shopping a little less, trying to hold onto my pennies.

UNIDENTIFIED MALE: It's at a steady pace, it's flat. I don't see going up or down.

KATHLEEN HAYS, CNNfn CORRESPONDENT (voice-over): Blame this insecurity on gas prices that have risen too quickly and paychecks that haven't risen quickly enough.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: This is a disconnect between some of the economic cheerleading that's going on and the way many working families are experiencing the recovery. We see the later in some of the consumer confidence reports which have been quite negative lately.

HAYS: The consumer comfort index has fallen for the last three weeks and nearing the lows of the year. And in May, when nearly a quarter of a million new jobs were created, more than 30 percent of those surveyed by the conference board said jobs were still hard to get.

But this may not be as bad as it looks. After all, consumers are still shopping.

JAY BRYSON, WACHOVIA SECURITIES: What's really more important is not what consumers say, it's what they do. And if you look at weekly chain stores sales, look at overall retail spending, you look at car sales, things of that nature, that all remains very, very solid now.

HAYS (on camera): Economists saw this same disconnect coming out of the recession of the early 1990s. Job growth was accelerating by 1993, but confidence didn't really pick up until well into 1994.

UNIDENTIFIED MALE: I'm encouraged. I think things are improving. The stock value is going up, and my investments are gaining value.

HAYS (voice-over): But many lower-income families whose budgets are hit hardest by rising gas prices may continue to swim against the tide for awhile.

BERNSTEIN: I think it could take as much as another few quarters of solid job growth before the real sense of confidence in the economy returns.

HAYS: Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

(MARKET UPDATE)

NGUYEN: Before we go, a quick look at two record-setting events, one on land, the other at sea.

First, though, to a casino in Connecticut where Larry Olmstead set the record for the longest time playing at a poker table. He stayed a whopping 72 hours and won almost $1,000 but gave most of it away in tips to the casino staff. What a generous man.

Well British tycoon Richard Branson set a record for crossing the English Channel in an amphibious car. He did it in an hour and 40 minutes, that's all it took. And that beats the old French record by more than four hours. And, of course, Branson did it with style wearing a dinner jacket and a bow tie. Do you expect anything less?

Coming up next in our second hour of LIVE FROM..., Bill and Hillary Clinton are immortalized in the White House. But something is different about this latest presidential portrait.

Plus, the cost of big city life. When compared to places around the world, the Big Apple's a bargain. Find out why, next.

(COMMERCIAL BREAK)

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Aired June 14, 2004 - 13:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: The chairman of the Senate Intelligence Committee is accusing the CIA of slowing the release of a report critical to the agency. The committee examined U.S. intelligence problems prior to the Iraq War, focusing on the failure to find weapons of mass destruction. The CIA is vetting the report cutting out classified information.
(BEGIN VIDEO CLIP)

SEN. PAT ROBERTS (R-KS), INTELLIGENCE CHAIRMAN: They were supposed to have that back to us in two weeks. Then three. Then it's now four.

And I'm now learning from staff that some reporters are actually saying that there's some information from the CIA saying there's going to be further delays.

(END VIDEO CLIP)

NGUYEN: The report comes just after the announcement CIA Director George Tenet is stepping down next month.

With the handover just about two weeks away, the task of rebuilding Iraq appears daunting as CNN's Zain Verjee reports.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN CORRESPONDENT (voice-over): How do you rebuild a shattered country in the midst of suicide bombings, assassinations, abductions and a guerrilla war? Push on with reconstruction efforts in spite of the violence, say some. Give Iraqis a stake in their future, build roads, restore electricity, the flow of water, win hearts and minds and the violence will inevitably ebb away. But senior World Bank Officials say any development will be limited and slow if the security situation isn't stabilized first.

Foreign civilian workers are marked men, targeted for kidnapping or murdered by insurgents. Iraqis involved in reconstruction efforts themselves are fearful they, too, are targets.

American administration officials concede security will get worse before it gets better.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISER: The real goal, the real focus should be on training Iraqis to take care of their own security needs. And what we're going to be doing is urging our international partners to participate in both efforts to help the Iraqis become more capable.

VERJEE: Some contractors and aid agencies pulled out their workers from Iraq. Those still operating spend much money on staffed protection and security, money that could have been spent on projects themselves.

The hope was for Iraqi oil to pay for the cost of reconstruction. But militants continue to sabotage crucial oil pipelines, delaying the flow of oil from Iraq.

An interim government's preparing to assume all but military power in two weeks from U.S.-led occupation forces. But it inherits an insurgency committed to creating chaos by sabotaging reconstruction plans and one that increasingly appears determined to kill the very men that would play a crucial role in rebuilding Iraq.

Zain Verjee, CNN, Atlanta.

(END VIDEOTAPE)

MILES O'BRIEN, CNN ANCHOR: A suspected terrorist with a million- dollar price on his head has been turned over to Pakistani intelligence. He's described as a close associate of Khalid Sheikh Mohammed, suspected mastermind of the 9/11 attacks. He was capture along with eight other suspected al Qaeda terrorists in Pakistan yesterday, we're told.

Pakistan today ended a five-day military operation aimed at attacking al Qaeda suspects along the Afghan border. The U.S. military praises the operation but says no major leaders were company captured.

NGUYEN: The wave of attacks on westerners is intensifying in Saudi Arabia. The U.S. ambassador says the Saudi government is doing all it can to locate Paul Johnson, an American contractor kidnapped by Islamic militants. Now that follows the killings of two Americans and an Irish TV cameraman along with the wounding of his British colleague.

With a look at the rise of terror attacks in the Saudi kingdom, we want to turn now to defense and foreign policy analyst David Isby in Washington. Thanks for being with us.

DAVID ISBY, DEFENSE AND FOREIGN POLICY ANALYST: Good afternoon.

NGUYEN: First off, All fingers are pointing to al Qaeda. But how convinced are you that these attacks are the work of al Qaeda?

ISBY: Well it's usually "attributed to" or "linked to," are the phrases used if you'll look at the report. Indeed, we don't seem to have a great deal known about how al Qaeda is functioning inside Saudi Arabia. This has been in the past an area where they haven't launched terrorist activity. So the fact that they're now doing it here is, indeed, a change.

NGUYEN: Right, because where they're launching this activity is on soft targets, namely Americans in residential neighborhoods. Why is that?

ISBY: Well, that's -- in some ways it's been what al Qaeda's been doing since 9/11. If you look where they've been attacking -- Bali, Morocco, a synagogue in Tunisia, bank in Turkey -- these are not hard or military or well-defended targets.

So they look for soft targets. And indeed some people are concerned that if they strike the United States before this election they'll look for soft targets. They're easier and it allows them to show they're still in the game despite all the setbacks.

NGUYEN: But it's more than just killing Westerners. Tell us a little bit about the history here. This is deeply rooted in Saudi oil, is it not?

ISBY: It is. I mean Saudi Arabia gets its money through oil. The oil industry isn't going to function without Westerners there. And so it's very much attacking the economic lifeblood, not just of the West, but of the kingdom of Saudi Arabia.

NGUYEN: So how is Saudi Arabia cracking down on this? We've seen two Americans killed in the past week. There are 26 terror suspects on the Saudi list, only a handful have been caught.

ISBY: Yes. Certainly the Saudis have made an effort in the kingdom. Their are checkpoints, barbed wire, a very big show of security which is rare in a kingdom which prided itself in keeping things under control.

Perhaps more significance behind the scenes, there is now a major crackdown on the Islamic charities, non-governmental organizations that have been associated with funding terror worthwhile (ph). Many of these have been shut down, including that one headed by the Saudi minister of Islamic affairs.

So they are making more of an effort here than before. But there's still a long way to go.

NGUYEN: And you call it making more of an effort. But is enough being done by the Saudis?

ISBY: Certainly there is a step back for every two steps forward. I think one thing which may have brought the Saudis around was earlier this year attacks which ended up with Saudi dead.

And the Saudis have seen effective anti-terrorist campaigns before. They participated in one in Bahrain in the '80s and '90s, in which a terrorist threat was defeated.

But in the longer term, there is a threat to the nature of the Saudi state. What's going to be the future of Saudi Arabia? And one thing which greatly worrying them there is Iraq.

NGUYEN: And what's going to be the future of Westerners in Saudi Arabia? Because if they leave out of fear, the terrorists win. ISBY: Certainly. And that's one thing why they have to be careful with things like the U.S. State Department, the British evacuation of foreigners, British Airways reduction of their on the ground presence. This can lead to panic, lead to economic damage that could raise the price of oil and do more damage than any number of bombs.

So the terrorist, by his nature, seeks to create panic, seeks to create economic disruption beyond the range of his guns or bombs.

NGUYEN: Defense and foreign policy analyst David Isby, we thank you for your insight.

ISBY: Thank you.

O'BRIEN: News across America now. Flames at the doorstep. Crews managed to halt this stubborn California wildfire just a few feet away from half a dozen homes. Unfortunately the fire did swallow up one house and several other buildings as well as about 30 acres of farmland.

A blaze that started as a campfire is out of control in New Mexico. It burned more than 1,000 acres at the Cibola National Forest. Firefighters burned about 1,000 more to get potentially combustible brush out of the way. A backfire they call it.

And a tornado touches down, blasting everything in its past. Look at this picture. Amazing video. Kids, don't try that at home. Comes from Kansas. At least half a dozen twisters ravaged the Wichita area over the weekend. Funnel clouds, flooding, brutal thunderstorms reported throughout the plains and Midwest leaving two dead. A house was destroyed in this image there.

Well how's the economy doing, you may ask? It's either rebounding or it's still in the dumper. How's that for covering the range? We try to cover all our bets here on LIVE FROM... We'll go in search of a more definitive answer for you.

And up next, we'll go live to Simi Valley. That's the California location of the Reagan Library. The public is getting its first chance to pay its respects at Ronald Reagan's beautiful final resting place. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: He was a shoulder to lean on and a strong hand to hold for Nancy Reagan last week. Major General Galen Jackman was also the man in charge of all of the ceremonies and services for Ronald Reagan's funeral. He spoke with "AMERICAN MORNING's" Bill Hemmer about the extraordinary week, and Nancy Reagan's reaction to the outpouring of support in Washington.

(BEGIN VIDEO CLIP)

MAJ. GEN. GALEN JACKMAN, COMMANDER, MILITARY DISTRICT OF WASHINGTON: I think that this was really the first time that Mrs. Reagan stepped out of the limousine in the midst of all of the people directly in the center of Washington D.C., and I think that it was a great homecoming, and she remarked throughout the week how much she was taken by the outpouring of support from this nation for her husband and for herself.

(END VIDEO CLIP)

O'BRIEN: All of the official rituals and remembrances for Ronald Reagan ended on Friday. It was an amazing week, wasn't it? And now the legions are Reagan admirers who did not rate an invitation to the ceremonies are heading to his grave site, the Reagan Presidential Library in California.

Our Thelma Gutierrez is talking with some of the mourners there in Simi Valley today.

Hello, Thelma.

THELMA GUTIERREZ, CNN CORRESPONDENT: Hi there, Miles.

Well, you're right, the parking lot out here has filled up. I can tell you that the shuttles will begin running soon, bringing people from down below up to the Reagan Library this morning. The doors actually opened up about 45 minutes ago. We talked to people who came from as far away as Des Moines, Iowa, and Denver. One woman who was in line was from the Philippines. They say that they just wanted to be among the first to actually have a chance to visit the grave site.

Now, the hours out here will be extended for the next 30 days, which is the official period of mourning, and then on July 4th, the library will open a new exhibit out here, which will feature the shell casings from the 21-gun salute, the beir on which the casket rested while the president lied in in repose, and also video highlights from last week's events, and uniforms from the Honor Guard.

Now Ron Kellish is from Denver. He took a day off from work, and he came specifically to be among the first to stand in that line.

You said that you went through just a few minutes ago and that it was a very moving experience for you.

RON KELLISH, LIBRARY VISITOR: It was moving, after -- especially after last week's events, all of the pomp and circumstances, and the pageantry, which was just, you know, incredible, and being able to just kind of go, you know, through the line and being able to see the interment is just you know, I don't know, just made it more very surreal, more very personal for me.

GUTIERREZ: You said that you had watched, you had followed all last week's events and that in many ways, this brought closure for you.

KELLISH: I think it did. It's -- you always want to, any time you see something with that much intense coverage, you just want to be there and I guess be a part of it, and this was, I guess, kind of my way of, like I was representing myself and my family, if you will, to be coming out here this weekend, and to be able to see something pretty incredible.

GUTIERREZ: Tomorrow you head back to Denver?

KELLISH: Actually we'll be heading back later today, yes.

GUTIERREZ: OK. Any reactions from some of the people that you saw here in line?

KELLISH: I think everybody -- it seemed like everybody felt the same way. I think it transcends all -- it seemed like it's transcended all political lines. People that I was talking to, not very involved very much with politics; others more actively involved with politics, and all just wanted to be here to see a, you know, a great president.

GUTIERREZ: All right, Ron Kellish, thank you very much.

KELLISH: Thank you.

GUTIERREZ: And, Miles, out here, there are also condolence books that people can sign. They're also leaving flowers as they walk past the grave site. And again, it is a pretty remarkable day up here. It's very bright, and on a clear day, you can see from that grave site out to the Pacific Ocean -- Miles.

KELLISH: A beautiful location. Thelma Gutierrez, thank you very much.

Just because you're 80 doesn't mean you have an excuse to sit around and watch TV. That's the message from former President George H.W. Bush, and he sends it out loud and clear. He underscored his point, and you'll see it here. There, that's how he did it. He jumped out of a perfectly good airplane, not just once, but twice yesterday, to mark his entering the octogenarian years.

One of them a tandem jump. As you see here, he's with no less than the Army's Golden Knights, the best in the business of falling.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There wasn't too much pressure. It was more like honor. The Army was definitely honored on its 229th birthday to help celebrate his 80th.

(END VIDEO CLIP)

Now these were Mr. Bush's fourth and fifth jumps, earning him his parachutist wings.

NGUYEN: Don't know how he does it. I can't even jump once. Too scared of that.

Well, we do have a live check of Wall Street. That is next.

Plus, he's conquered the skies. Now Richard Branson makes a name for himself at sea.

(COMMERCIAL BREAK)

O'BRIEN: Consumers are buying everything that isn't nailed down these days. That's what one economist says about today's strong retail sales report. But the recovery hasn't helped everyone. And some consumers remain nervous about the future. CNN's Kathleen Hays has been talking with some.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I feel a little bit of uneasiness.

UNIDENTIFIED MALE: With the economy as it is now I find myself shopping a little less, trying to hold onto my pennies.

UNIDENTIFIED MALE: It's at a steady pace, it's flat. I don't see going up or down.

KATHLEEN HAYS, CNNfn CORRESPONDENT (voice-over): Blame this insecurity on gas prices that have risen too quickly and paychecks that haven't risen quickly enough.

JARED BERNSTEIN, ECONOMIC POLICY INSTITUTE: This is a disconnect between some of the economic cheerleading that's going on and the way many working families are experiencing the recovery. We see the later in some of the consumer confidence reports which have been quite negative lately.

HAYS: The consumer comfort index has fallen for the last three weeks and nearing the lows of the year. And in May, when nearly a quarter of a million new jobs were created, more than 30 percent of those surveyed by the conference board said jobs were still hard to get.

But this may not be as bad as it looks. After all, consumers are still shopping.

JAY BRYSON, WACHOVIA SECURITIES: What's really more important is not what consumers say, it's what they do. And if you look at weekly chain stores sales, look at overall retail spending, you look at car sales, things of that nature, that all remains very, very solid now.

HAYS (on camera): Economists saw this same disconnect coming out of the recession of the early 1990s. Job growth was accelerating by 1993, but confidence didn't really pick up until well into 1994.

UNIDENTIFIED MALE: I'm encouraged. I think things are improving. The stock value is going up, and my investments are gaining value.

HAYS (voice-over): But many lower-income families whose budgets are hit hardest by rising gas prices may continue to swim against the tide for awhile.

BERNSTEIN: I think it could take as much as another few quarters of solid job growth before the real sense of confidence in the economy returns.

HAYS: Kathleen Hays, CNN Financial News, New York.

(END VIDEOTAPE)

(MARKET UPDATE)

NGUYEN: Before we go, a quick look at two record-setting events, one on land, the other at sea.

First, though, to a casino in Connecticut where Larry Olmstead set the record for the longest time playing at a poker table. He stayed a whopping 72 hours and won almost $1,000 but gave most of it away in tips to the casino staff. What a generous man.

Well British tycoon Richard Branson set a record for crossing the English Channel in an amphibious car. He did it in an hour and 40 minutes, that's all it took. And that beats the old French record by more than four hours. And, of course, Branson did it with style wearing a dinner jacket and a bow tie. Do you expect anything less?

Coming up next in our second hour of LIVE FROM..., Bill and Hillary Clinton are immortalized in the White House. But something is different about this latest presidential portrait.

Plus, the cost of big city life. When compared to places around the world, the Big Apple's a bargain. Find out why, next.

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