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Bush to Interim Iraqi Govt. on Saddam: 'How Are You Going to Make Sure He Stays in Jail?'

Aired June 15, 2004 - 13:57 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: He's a killer. He is a thug. He needs to be brought to trial. We want to make sure that the transfer to a sovereign government is done in a timely way, and in a secure way.

(END VIDEO CLIP)

MILES O'BRIEN, CNN ANCHOR: Custody issues. When will the United States hand over Saddam Hussein to Iraq?

KYRA PHILLIPS, CNN ANCHOR: Striking it rich in America. More of us are millionaires. This hour, three steps that you can take to accumulate wealth.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That alligator has eaten something recently, look at that belly. That's probably a dog in there.

(END VIDEO CLIP)

O'BRIEN: And they taste just like chicken. The growing problem of gators on the prowl in Florida.

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

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

Up first this hour, the Saddam scenario. Six months almost to the day after the former Iraqi dictator was pulled out of a hole near Tikrit, and 15 days before the return of Iraqi sovereignty, the custody question is front and center for U.S. and Iraqi officials. Discussions are said to be under way even briefly in the White House Rose Garden where the thorny subject intruded on a joint appearance with the visiting president of Afghanistan.

Here's President Bush.

(BEGIN VIDEO CLIP)

BUSH: We're working with the Iraqi government on a couple of issues...

(END VIDEO CLIP)

PHILLIPS: All right, we just lost that tape with the president. We apologize. We'll try to get it back up and running -- Miles.

O'BRIEN: Regulations, technicalities, and real-world concerns all factor into to any decision to let Saddam out of U.S. control. But as you heard from President Bush, the calendar probably won't be the final word. CNN's Sean Callebs picks up the rest of our story from our Washington bureau.

Hello, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hi, Miles, indeed, Iraq's leaders want him. And the United States is making it clear they will handover Saddam Hussein at what they term "the appropriate time." Now Iraqi interim prime minister, Iyad Allawi, today said on CNN's "AMERICAN MORNING" that negotiations are right now under way, and the former Iraqi leader, Saddam Hussein, as well as hundreds of other prisoners, could be handed over to Iraq's fledgling government within a couple of weeks to prepare for trial.

(BEGIN VIDEO CLIP)

IYAD ALLAWI, IRAQI INTERIM PRIME MINISTER DESIGNATE: We definitely will be trying our best to get custody of Saddam and the other criminals. We have so far some definite promises from the coalition that this would be the case, the negotiations are under way and are progressing well.

(END VIDEO CLIP)

CALLEBS: The U.S. says that may be overstating it. From Baghdad, the spokesman for the Coalition Provisional Authority is describing the talks as more of a discussion rather than negotiations. He says both the United States and the Iraqi people have an interest in handing over Saddam Hussein. Dan Senor says delivering Saddam Hussein however is out of the question until a new government takes control in Baghdad.

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION SPOKESMAN: Under international, however, we cannot hand Saddam Hussein over to a non-sovereign government. The government will be fully sovereign June 30. We also do not have to hand him over until there is a cessation of active hostilities. The repatriation doesn't begin until after that. Hostilities unfortunately continue. But our goal, our priority is to get him into Iraqi hands as soon as possible. And we expect some time after June to be able to do that.

(END VIDEO CLIP)

CALLEBS: As he mentioned, sovereignty will be restored to the Iraqis at midnight on June 30. Senor says Saddam Hussein could still technically be a prisoner of war at that time because fighting will probably still be going on. Senor adding that war crimes charges against Saddam Hussein could be filed by the end of June. The Pentagon -- this cuts to the heart of it. The Pentagon has made it clear that until it's confident Iraqi forces can prove they can safely guard Saddam Hussein and thousands of other detainees, the U.S. will continue to hold them -- Miles.

O'BRIEN: Sean Callebs, thank you very much. The president was in the Rose Garden of the White House earlier along with Afghan President Hamid Karzai. Most of the questioning from reporters was about this very subject. The president laying out as clearly as he could what his feelings are about the possible turnover of Saddam Hussein to Iraqi authorities.

(BEGIN VIDEO CLIP)

BUSH: We're working with the Iraqi government on a couple of issues. One is the appropriate time for the transfer of Saddam Hussein, and, secondly, we're working to make sure there's appropriate security. I mean, one thing obviously is that we don't want, and I know the Iraqi interim government doesn't want is there to be lax security and for Saddam Hussein to somehow not stand trial for the horrendous murders and torture that he inflicted upon the Iraqi people.

I just want to make sure that as -- when sovereignty is transferred, Saddam Hussein is -- stays in jail. That's just a matter of discussion and understanding the procedures. That's all we're saying. I'm confident that when it's all said and done he will stay in jail. I just want to be assured. Listen, we've got -- we're over there for a reason, we're over there to make our country more secure. And one way to do so was to make sure Saddam Hussein was not in power.

Secondly we're there to help the Afghan -- I mean, the Iraqi people. And we want to make sure that he doesn't come back to power. And so therefore it's a legitimate question to ask of the interim government, how are you going to make sure he stays in jail? And that's the question I'm asking. And when we get the right answer, as I'm confident we will, we'll work with them to do so, then we'll all be satisfied.

(END VIDEO CLIP)

PHILLIPS: Well, even though questions about Hussein dominated the press conference, Afghan President Hamid Karzai had a point of his own to make. He thanked the U.S. for its help on the war on terror when he addressed a joint meeting of Congress earlier today, but said the job is not done yet. Like his U.S. counterpart, there are two members of al Qaeda Karzai wants to see captured.

(BEGIN VIDEO CLIP)

HAMID KARZAI, PRESIDENT, AFGHANISTAN: Osama and Mullah Omar have committed crimes against the Afghan people, against the people in the United States and against the international community. They are international criminals. They are wanted by the international community. They are wanted by the world conscience. They have to be arrested and tried. And when they are arrested we will consult the international community and find appropriate mechanism for their trial.

(END VIDEO CLIP)

O'BRIEN: Of course, before they try Osama bin Laden they have to catch him. He has proved elusive even as the hunt for him has intensified. The U.S. military launched a spring offensive in the Afghan mountains, much talked about but it yielded little trace of him. Now the Pakistanis are trying a softer approach.

(BEGIN VIDEO CLIP)

STEVE KOLL, AUTHOR, "GHOST WARS": The Pakistani army hasn't been up in this part of the world for a long time. And When they made their initial foray they really got hit much harder than they expected. They have essentially settled down, tried to negotiate with the local tribal leaders to try to get them to turn over the fugitives in their midst. That hasn't been successful nor has the military campaigns.

(END VIDEO CLIP)

PHILLIPS: Just mentioning the words conjures a mental image of the suffering that those attacks inflicted. Now a new report suggests that they were planned to happen earlier. According to "The Washington Post," the attacks were delayed because lead hijacker Mohammed Atta was not ready. Evidence suggests the attacks were intended to happen in May or June of 2001.

O'BRIEN: Targeted terror attacks are ramping up concerns for Western workers in Saudi Arabia. Three Westerners killed last week and U.S. contractor Paul Johnson remains missing after apparently being kidnapped by Islamic militants.

Here's CNN's senior international correspondent Nic Robertson on the potential impact of the expat exodus if that situation gets worse.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): In Saudi Arabia the killings of three Westerners in the last week has prompted some companies employing Westerners to use telephone text messages about news events to calm employees' families. And although there is no panic yet, one large expatriate employer, who prefers anonymity, talked of rapidly rising concern.

WALID, COMPANY SPOKESMAN: The main concern is the tactics have been changing. Before it was really putting car bombs full of explosives, and now with something with individual targets, and that is of concern because you don't know what's going to happen next.

ROBERTSON: Sources close to Saudi intelligence suspect this man, Abdul Aziz al-Muqrin, is behind the recent spate of attacks on Westerners, and say his capture could significantly unravel what Saudi officials have described as the country's last significant al Qaeda cell. His speedy capture though, according to one Saudi security consultant, is by no means guaranteed, and nor is the safety of the Western workers.

NABEIO, SAUDI SECURITY: You cannot protect every single expatriate that lives in Saudi Arabia when he is in his car, going to his office and so forth. There is over 80,000 expatriates in Saudi Arabia. So it comes back to the question, how can they be protected? And the question (sic) is they cannot.

ROBERTSON: Should these attacks continue, analysts suspect Saudi Arabia's massive oil industry would likely bear the brunt of the departure of the Western workers. Few, though, think it would have an immediate effect on oil output.

DOMINIC SIMPSON, KROLL: Some Saudis are saying that maybe it's -- it would be no bad thing if it happened because there are a lot of young Saudis coming on to the market who need employment and training.

ROBERTSON (on camera): Indeed it seems many Saudis believe most Western workers will eventually leave the Gulf kingdom. Just how bloody the terror attacks will get before that exodus happens is still open to speculation.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

PHILLIPS: A dry summer and fewer places to hang out. It's a dangerous combination for the gator population and the humans who cross its path. We'll take a bite of that one just ahead.

Millions of Americans are reeled in by it. What you need to know to avoid getting hooked by a computer scam called "phishing."

And do you really need to floss every day? A new study shows something else might work just as well. No strings attached.

(COMMERCIAL BREAK)

PHILLIPS: Heated testimony, a request for a mistrial and even a call to clear the courtroom. Plenty of drama in the murder trial of Scott Peterson. Our Rusty Dornin is live in Redwood City, California, with today's developments -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, what is another of a long line of police witnesses from Modesto Police Department. The prosecution, of course, trying to lay the groundwork here to show that the police conducted a very thorough investigation. Of course, each time cross-examination takes place, Mark Geragos tries to poke holes in their investigation techniques.

Up on the stand right now is Officer Jon Evers, another one of those who was on the scene in the very beginning in the park, at the Peterson house. He is describing Scott Peterson's behavior that night and also what he saw inside the house. He did say that Scott Peterson told him he went fishing that day but he thought it was very strange because Peterson said he didn't really know what he was fishing for and couldn't describe what bait he used that day.

We also did see the parking receipt that Peterson did show police that shows that he was there at 12:54 in the afternoon on December 24, the day his wife disappeared. Of course, again fireworks yesterday because Mark Geragos was very upset with two officers who described an incident where they claimed Scott Peterson threw down a flashlight and swore after he had been interviewed by officers talking about the fact that he didn't know what he was fishing for. Geragos said that was in no report anywhere. It should never have been brought up. He called for a mistrial. The judge did turn him down. Later this afternoon we are going to be hearing again more from Officer Jon Evers -- Kyra.

PHILLIPS: Rusty Dornin, live from Redwood City, thanks -- Miles.

O'BRIEN: News across America now. Eight tigers rescued from a run-down sanctuary in San Bernardino, California, heading to a new home in San Andreas. They're among dozens that were saved from tiger rescue last year. The owners of that outfit are facing animal cruelty charges, kind of an ironic name there.

And the Dallas Zoo is allowing its five remaining gorillas to go back on display. They have been in a holding area for the past three months. Their exhibit was closed when one of the zoo's gorilla's escaped in March and injured three people. You remember that one. Police shot and killed that gorilla, unfortunately.

PHILLIPS: Well, they've got a deadly grin, they're amorous and they're on the prowl. It's mating season in Florida for more than 1 million alligators. They're also hungry. Our John Zarrella says it's grounds for an unusual turf war between the locals and the natives.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF (voice-over): Try explaining this one to your insurance agent. It was no lie, an alligator that ate Carolyn Christian's (ph) bumper, a last desperate act of defiance before its capture. Another took a bite out of Jennifer Cook's (ph) dog.

UNIDENTIFIED FEMALE: And I got my dog and took him right to the hospital.

ZARRELLA: This time of year in Florida alligators are on the move. Dry weather sends them in search of water. It's mating season, too. Gators end up looking for love in all the wrong places, which brings out the local trapper to remove the critter.

UNIDENTIFIED MALE: That alligator has eaten something recently. Look at that belly. That's probably a dog in there.

ZARRELLA (on camera): This is where gators are supposed to be out here in the Everglades, but it's not surprising to find them just about anywhere. The alligator is one of nature's greatest comeback stories.

(voice-over): Twenty-five years ago the alligator was an endangered species. Hunting and poaching had nearly wiped them out. Now there are more than 1 million alligators in Florida. No longer endangered, they are protected. And it is Fish and Wildfire Officer Bill Stiffler's (ph) job to make sure they stay that way. But he says people who feed the animals in their backyard lakes or canals turn the creatures into nuisance gators and sign their death warrants.

UNIDENTIFIED MALE: If you call in and you have an aggressive alligator and we have to come and respond to remove it, the animal is not just taken back out to the Everglades, it is killed. That is our policy.

ZARRELLA: It would be nice, wildlife officials say, if humans and alligators didn't have to co-exist. But in Florida where land is a premium, people and gators are increasingly calling the same territory home.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

PHILLIPS: Long legs are a key success for supermodels but they can also increase your chances of avoiding a killer. Details coming up in the health headlines.

And later a funeral marking a significant passing, not of a former president but of the last living Confederate widow. Her amazing story later on LIVE FROM...

(COMMERCIAL BREAK)

PHILLIPS: Well, we're talking phishing, we're not talking about casting a line. It's actually a pretty disturbing trend in online identity theft.

O'BRIEN: It's P-H-I-S-H. You have to see it, it's one of those visual things. We don't do that visual thing very well on TV, do we? No. I guess we do. Sherri (sic) Sylvester anyway reports on 2 million Americans were victims of this thing last year.

(BEGIN VIDEOTAPE) . LISA SYLVESTER, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): Thieves have found a new way to tap into consumers' bank accounts. They don't even have to steal personal information. They just ask for it. It's called phishing. Criminals send out phony e-mails requesting bank information updates with a link to a fake Web site. It's almost impossible to tell the difference between this phony Fleet bank Web site and the real one.

AVIVAH LITAN, GARTNER CONSULTING: Even though it may say in your e-mail a legitimate Web site, hidden behind that address is the crook's address.

SYLVESTER: For identity theft victims clearing their names can take years. Sharon Jones has a pile of letters from creditors demanding payments for bills that are not hers. SHARON JONES, IDENTITY THEFT VICTIM: It has been a total nightmare because you never know when something else is going to pop up so you have to constantly check your credit report.

SYLVESTER: Phishing e-mail have increased 4000 percent in the past six months according to the Anti-Phishing Working Group, which includes Internet service providers, banks and law enforcement officials. Citibank, eBay and PayPal are the most common targets. But consumers can protect themselves by looking for tip-offs such as misspelled words and by not clicking on links even ones that appear legitimate.

DAVID JEVANS, ANTI-PHISHING WORKING GROUP: The most effective thing is to really open up a Web browser window and go directly to the bank yourself. Type in the address into the Web browser rather than relying on the link.

SYLVESTER: The financial and computer industries are working on standards to authenticate e-mail. In the meantime banks will reimburse victims of credit and checking account scams provided they're reported within two months.

(on camera): There's another growing trend in identity theft called Trojan horse or spyware. Consumers are sent a link and when they open it, they have unknowingly downloaded spyware software that records every keystroke including personal financial information.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

(MARKET REPORT)

(COMMERCIAL BREAK)

O'BRIEN: Welcome back to the CNN Center in Atlanta. This is LIVE FROM...

I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. Here's what all new this half hour. Becoming a millionaire, more Americans are doing it. And apparently it's easier than ever. What you need to know to start accumulating wealth.

O'BRIEN: And a new look for those in uniform. A design change for the U.S. Army. We'll have details on that just ahead. But first the top stories that we're following for you.

PHILLIPS: Attention spam haters, if you're hoping to sign up for that much ballyhooed national do-not-e-mail registry, you are going to have to wait just a little longer. The Federal Trade Commission thinks that unscrupulous e-mailers could get hold of the list and find new victims. The FTC says the registry will have to wait until technology finds a way to authenticate e-mail senders. A big shot in the arm for a bill that would let Americans buy cheaper prescription drugs in Canada. AARP says it will back the legislation. With 36 million members, the AARP is the nation's largest group representing seniors. The proposals have been getting support from both parties in Congress but not from the White House.

They're greasy. They can be frozen but the Agriculture Department is officially classifying batter-coated french fries as a fresh vegetable. But before you rush to a hamburger joint to get your daily veggie requirement, be warned, new rules apply only to commerce not nutrition.

O'BRIEN: Well, do you find yourself digging under the couch cushions to find a little extra spending money at the end of the month? Then you'll be amazed and perhaps a little annoyed to hear that the number of U.S. millionaires increased 14 percent last year. Yes, more than 2 million of them. If you break it down, that's 1 in every 125 Americans. Not quite there yet? Well, it's your lucky day. David Bach joins us from New York, David is the author of "The Automatic Millionaire."

DAVID BACH, "THE AUTOMATIC MILLIONAIRE": Good afternoon.

O'BRIEN: From the Finish Rich seminars and contributor to "AMERICAN MORNING." Good to see you, sir.

BACH: Good to see you.

O'BRIEN: Surely this can't be automatic?

BACH: What amazed me about this new study is that only 2 million people in America right now have over a million dollars liquid outside of their real estate. That's a small percent, it's less than 1 percent. And so I wrote this book, "The Automatic Millionaire" because I want to help 10 million people right now in this country go from having on average less than $50,000 in savings to becoming a millionaire by 2030. And the reality is it is easy to do if you have a system in place that doesn't require you to have discipline or use a budget.

O'BRIEN: All right. Easy, easy is a relative term. As we talk about this I want you to really be realistic about what's easy. First of all, your first method here is to pay yourself first. What does that mean?

BACH: Pay yourself first means when you earn a paycheck, before you pay the government -- because the government takes money out of your paycheck automatically -- before you pay the government, the first person who has to be paid is you. One hour a day of your income.

If you are a baby boomer right now watching this, if you took one hour a day of your income, had that money automatically moved from your payroll to your retirement account, that could be a 401(k) plan, an IRA account. If your self-employed, it would be a SEP IRA. If you do this you will build hundreds of thousands of dollars in savings, people who are watching in their 20s and their 30s, you could have well over a million dollars because of compound interest by the time you retire. One hour a day of your income.

O'BRIEN: And, just a point on that, a million dollars, is that plenty these days for retirement depending on how you live?

BACH: Really depends on where you live. Right now I'm in New York City. It's not always easy to retire in a city like New York City on a million dollars.

But let's face it. Most Americans right now, could they retire on a million dollars? Absolutely. In fact, a lot could retire on as little as a quarter of a million dollars if they have a pension plan, Social Security and no debt.

So that leads to step No. 2 which is where will Americans find an hour a day of their income to save.

O'BRIEN: The latte factor.

BACH: Their latte factor. What I suggest you do is this: today look at where did you spend small amounts of money on little things. A latte for $3.50. Bottled water. It could be cigarettes Going out tonight for a martini. Little dollar amounts, $10 a day is enough to make your family rich.

If both you and your partner save $10 a day, it's over $7,000 which is three times what the average American family saves a year.

(UNINTELLIGIBLE) leaves the third step which...

O'BRIEN: Wait a minute. A lot of people don't think about this. They go to the Starbucks, drive in their SUV, the drive up window, buy the latte and then drive around for cheap gas.

(CROSSTALK)

BACH: We do these seminars. People can find our seminars at FinishRich.com. We do them and they're free, all over the country. People show up at my seminars and they say, David, I don't have any money to save. And they're sipping a latte as they tell me this.

The new thing is bottled water with vitamins in it. But whatever the little thing is, we've got the money. Average American family is making nearly $50,000 a year and saving almost nothing. So we need to change the flow of our money.

And that leads to really the third thing which is -- I got to tell you something, if you are renting, you need to be saving to buy a home. The best investment you will ever make in America is real estate. You want to buy your own home.

We know statistically that renters are poor in this country. The average renter has a net worth less than $5,000. Homeowners are worth almost 132 times -- sorry, 31 times more. They have a net worth of over $140,000 today.

So if you want to be rich, you need to buy your first home. And then the second thing is pay that home off early using an automatic payment plan. And what I recommend in the book is the idea of a biweekly mortgage.

Take that monthly mortgage payment, and chunk it down. Take that monthly mortgage payment of $1,000 and pay it $500 every two weeks. You'll take a 30-year mortgage, you'll pay it off in 23 years.

If you have a mortgage of over a quarter of a million dollars that will actually help you save $117,000 just in interest payments. Then you can go out and by all the lattes you want, go on vacation and save more for retirement.

O'BRIEN: And that final point there, David, how do you strike a balance between being frugal and doing some things that are after all what life is about?

BACH: A really good question. Here's what I say to really everybody at home. I don't want you to not have any fun. I want you to do though is not live paycheck to paycheck. And when we do surveys we see that so many Americans like one out of every three Americans, in some cases more, they tell us they're living paycheck to paycheck.

So while I don't want you to be frugal and not have fun, I want you to alleviate the stress in your life that's going from living paycheck to paycheck.

And I want you to the freedom that goes with knowing you've got some money in the bank for a cushion, but you've also got money you're saving for the future, that you own your home, that you're not letting the banks and government take advantage of you. And that you're on your way to being an automatic millionaire.

O'BRIEN: "Automatic Millionaire" is name of the book. David Bach is the author, runaway sensation. He'll be on "Oprah" later today. Enjoy your automatic millionaire run.

BACH: Thank you.

O'BRIEN: My pleasure -- Kyra.

PHILLIPS: Now he's going to be on "Oprah" he'll be a quadrillonaire.

(CROSSTALK)

O'BRIEN: What was he doing slumming here? We're not sure.

It's the news we've all been waiting for. No more tedious flossing required for healthy choppers. The minty fresh health headlines coming up.

LIVE FROM...'s favorite senior is a senora. And she's working out extra hard to make her Olympic dream come true. (CROSSTALK)

PHILLIPS: Yes, she is.

Speaking of cutie, hey, soldier, who are you wearing? A new look for GIs suitable for all kinds of combat. But tan boots? Really? LIVE FROM... asks the tough questions right after this.

(COMMERCIAL BREAK)

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Aired June 15, 2004 - 13:57 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: He's a killer. He is a thug. He needs to be brought to trial. We want to make sure that the transfer to a sovereign government is done in a timely way, and in a secure way.

(END VIDEO CLIP)

MILES O'BRIEN, CNN ANCHOR: Custody issues. When will the United States hand over Saddam Hussein to Iraq?

KYRA PHILLIPS, CNN ANCHOR: Striking it rich in America. More of us are millionaires. This hour, three steps that you can take to accumulate wealth.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: That alligator has eaten something recently, look at that belly. That's probably a dog in there.

(END VIDEO CLIP)

O'BRIEN: And they taste just like chicken. The growing problem of gators on the prowl in Florida.

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

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

Up first this hour, the Saddam scenario. Six months almost to the day after the former Iraqi dictator was pulled out of a hole near Tikrit, and 15 days before the return of Iraqi sovereignty, the custody question is front and center for U.S. and Iraqi officials. Discussions are said to be under way even briefly in the White House Rose Garden where the thorny subject intruded on a joint appearance with the visiting president of Afghanistan.

Here's President Bush.

(BEGIN VIDEO CLIP)

BUSH: We're working with the Iraqi government on a couple of issues...

(END VIDEO CLIP)

PHILLIPS: All right, we just lost that tape with the president. We apologize. We'll try to get it back up and running -- Miles.

O'BRIEN: Regulations, technicalities, and real-world concerns all factor into to any decision to let Saddam out of U.S. control. But as you heard from President Bush, the calendar probably won't be the final word. CNN's Sean Callebs picks up the rest of our story from our Washington bureau.

Hello, Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Hi, Miles, indeed, Iraq's leaders want him. And the United States is making it clear they will handover Saddam Hussein at what they term "the appropriate time." Now Iraqi interim prime minister, Iyad Allawi, today said on CNN's "AMERICAN MORNING" that negotiations are right now under way, and the former Iraqi leader, Saddam Hussein, as well as hundreds of other prisoners, could be handed over to Iraq's fledgling government within a couple of weeks to prepare for trial.

(BEGIN VIDEO CLIP)

IYAD ALLAWI, IRAQI INTERIM PRIME MINISTER DESIGNATE: We definitely will be trying our best to get custody of Saddam and the other criminals. We have so far some definite promises from the coalition that this would be the case, the negotiations are under way and are progressing well.

(END VIDEO CLIP)

CALLEBS: The U.S. says that may be overstating it. From Baghdad, the spokesman for the Coalition Provisional Authority is describing the talks as more of a discussion rather than negotiations. He says both the United States and the Iraqi people have an interest in handing over Saddam Hussein. Dan Senor says delivering Saddam Hussein however is out of the question until a new government takes control in Baghdad.

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION SPOKESMAN: Under international, however, we cannot hand Saddam Hussein over to a non-sovereign government. The government will be fully sovereign June 30. We also do not have to hand him over until there is a cessation of active hostilities. The repatriation doesn't begin until after that. Hostilities unfortunately continue. But our goal, our priority is to get him into Iraqi hands as soon as possible. And we expect some time after June to be able to do that.

(END VIDEO CLIP)

CALLEBS: As he mentioned, sovereignty will be restored to the Iraqis at midnight on June 30. Senor says Saddam Hussein could still technically be a prisoner of war at that time because fighting will probably still be going on. Senor adding that war crimes charges against Saddam Hussein could be filed by the end of June. The Pentagon -- this cuts to the heart of it. The Pentagon has made it clear that until it's confident Iraqi forces can prove they can safely guard Saddam Hussein and thousands of other detainees, the U.S. will continue to hold them -- Miles.

O'BRIEN: Sean Callebs, thank you very much. The president was in the Rose Garden of the White House earlier along with Afghan President Hamid Karzai. Most of the questioning from reporters was about this very subject. The president laying out as clearly as he could what his feelings are about the possible turnover of Saddam Hussein to Iraqi authorities.

(BEGIN VIDEO CLIP)

BUSH: We're working with the Iraqi government on a couple of issues. One is the appropriate time for the transfer of Saddam Hussein, and, secondly, we're working to make sure there's appropriate security. I mean, one thing obviously is that we don't want, and I know the Iraqi interim government doesn't want is there to be lax security and for Saddam Hussein to somehow not stand trial for the horrendous murders and torture that he inflicted upon the Iraqi people.

I just want to make sure that as -- when sovereignty is transferred, Saddam Hussein is -- stays in jail. That's just a matter of discussion and understanding the procedures. That's all we're saying. I'm confident that when it's all said and done he will stay in jail. I just want to be assured. Listen, we've got -- we're over there for a reason, we're over there to make our country more secure. And one way to do so was to make sure Saddam Hussein was not in power.

Secondly we're there to help the Afghan -- I mean, the Iraqi people. And we want to make sure that he doesn't come back to power. And so therefore it's a legitimate question to ask of the interim government, how are you going to make sure he stays in jail? And that's the question I'm asking. And when we get the right answer, as I'm confident we will, we'll work with them to do so, then we'll all be satisfied.

(END VIDEO CLIP)

PHILLIPS: Well, even though questions about Hussein dominated the press conference, Afghan President Hamid Karzai had a point of his own to make. He thanked the U.S. for its help on the war on terror when he addressed a joint meeting of Congress earlier today, but said the job is not done yet. Like his U.S. counterpart, there are two members of al Qaeda Karzai wants to see captured.

(BEGIN VIDEO CLIP)

HAMID KARZAI, PRESIDENT, AFGHANISTAN: Osama and Mullah Omar have committed crimes against the Afghan people, against the people in the United States and against the international community. They are international criminals. They are wanted by the international community. They are wanted by the world conscience. They have to be arrested and tried. And when they are arrested we will consult the international community and find appropriate mechanism for their trial.

(END VIDEO CLIP)

O'BRIEN: Of course, before they try Osama bin Laden they have to catch him. He has proved elusive even as the hunt for him has intensified. The U.S. military launched a spring offensive in the Afghan mountains, much talked about but it yielded little trace of him. Now the Pakistanis are trying a softer approach.

(BEGIN VIDEO CLIP)

STEVE KOLL, AUTHOR, "GHOST WARS": The Pakistani army hasn't been up in this part of the world for a long time. And When they made their initial foray they really got hit much harder than they expected. They have essentially settled down, tried to negotiate with the local tribal leaders to try to get them to turn over the fugitives in their midst. That hasn't been successful nor has the military campaigns.

(END VIDEO CLIP)

PHILLIPS: Just mentioning the words conjures a mental image of the suffering that those attacks inflicted. Now a new report suggests that they were planned to happen earlier. According to "The Washington Post," the attacks were delayed because lead hijacker Mohammed Atta was not ready. Evidence suggests the attacks were intended to happen in May or June of 2001.

O'BRIEN: Targeted terror attacks are ramping up concerns for Western workers in Saudi Arabia. Three Westerners killed last week and U.S. contractor Paul Johnson remains missing after apparently being kidnapped by Islamic militants.

Here's CNN's senior international correspondent Nic Robertson on the potential impact of the expat exodus if that situation gets worse.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): In Saudi Arabia the killings of three Westerners in the last week has prompted some companies employing Westerners to use telephone text messages about news events to calm employees' families. And although there is no panic yet, one large expatriate employer, who prefers anonymity, talked of rapidly rising concern.

WALID, COMPANY SPOKESMAN: The main concern is the tactics have been changing. Before it was really putting car bombs full of explosives, and now with something with individual targets, and that is of concern because you don't know what's going to happen next.

ROBERTSON: Sources close to Saudi intelligence suspect this man, Abdul Aziz al-Muqrin, is behind the recent spate of attacks on Westerners, and say his capture could significantly unravel what Saudi officials have described as the country's last significant al Qaeda cell. His speedy capture though, according to one Saudi security consultant, is by no means guaranteed, and nor is the safety of the Western workers.

NABEIO, SAUDI SECURITY: You cannot protect every single expatriate that lives in Saudi Arabia when he is in his car, going to his office and so forth. There is over 80,000 expatriates in Saudi Arabia. So it comes back to the question, how can they be protected? And the question (sic) is they cannot.

ROBERTSON: Should these attacks continue, analysts suspect Saudi Arabia's massive oil industry would likely bear the brunt of the departure of the Western workers. Few, though, think it would have an immediate effect on oil output.

DOMINIC SIMPSON, KROLL: Some Saudis are saying that maybe it's -- it would be no bad thing if it happened because there are a lot of young Saudis coming on to the market who need employment and training.

ROBERTSON (on camera): Indeed it seems many Saudis believe most Western workers will eventually leave the Gulf kingdom. Just how bloody the terror attacks will get before that exodus happens is still open to speculation.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

PHILLIPS: A dry summer and fewer places to hang out. It's a dangerous combination for the gator population and the humans who cross its path. We'll take a bite of that one just ahead.

Millions of Americans are reeled in by it. What you need to know to avoid getting hooked by a computer scam called "phishing."

And do you really need to floss every day? A new study shows something else might work just as well. No strings attached.

(COMMERCIAL BREAK)

PHILLIPS: Heated testimony, a request for a mistrial and even a call to clear the courtroom. Plenty of drama in the murder trial of Scott Peterson. Our Rusty Dornin is live in Redwood City, California, with today's developments -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, what is another of a long line of police witnesses from Modesto Police Department. The prosecution, of course, trying to lay the groundwork here to show that the police conducted a very thorough investigation. Of course, each time cross-examination takes place, Mark Geragos tries to poke holes in their investigation techniques.

Up on the stand right now is Officer Jon Evers, another one of those who was on the scene in the very beginning in the park, at the Peterson house. He is describing Scott Peterson's behavior that night and also what he saw inside the house. He did say that Scott Peterson told him he went fishing that day but he thought it was very strange because Peterson said he didn't really know what he was fishing for and couldn't describe what bait he used that day.

We also did see the parking receipt that Peterson did show police that shows that he was there at 12:54 in the afternoon on December 24, the day his wife disappeared. Of course, again fireworks yesterday because Mark Geragos was very upset with two officers who described an incident where they claimed Scott Peterson threw down a flashlight and swore after he had been interviewed by officers talking about the fact that he didn't know what he was fishing for. Geragos said that was in no report anywhere. It should never have been brought up. He called for a mistrial. The judge did turn him down. Later this afternoon we are going to be hearing again more from Officer Jon Evers -- Kyra.

PHILLIPS: Rusty Dornin, live from Redwood City, thanks -- Miles.

O'BRIEN: News across America now. Eight tigers rescued from a run-down sanctuary in San Bernardino, California, heading to a new home in San Andreas. They're among dozens that were saved from tiger rescue last year. The owners of that outfit are facing animal cruelty charges, kind of an ironic name there.

And the Dallas Zoo is allowing its five remaining gorillas to go back on display. They have been in a holding area for the past three months. Their exhibit was closed when one of the zoo's gorilla's escaped in March and injured three people. You remember that one. Police shot and killed that gorilla, unfortunately.

PHILLIPS: Well, they've got a deadly grin, they're amorous and they're on the prowl. It's mating season in Florida for more than 1 million alligators. They're also hungry. Our John Zarrella says it's grounds for an unusual turf war between the locals and the natives.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN MIAMI BUREAU CHIEF (voice-over): Try explaining this one to your insurance agent. It was no lie, an alligator that ate Carolyn Christian's (ph) bumper, a last desperate act of defiance before its capture. Another took a bite out of Jennifer Cook's (ph) dog.

UNIDENTIFIED FEMALE: And I got my dog and took him right to the hospital.

ZARRELLA: This time of year in Florida alligators are on the move. Dry weather sends them in search of water. It's mating season, too. Gators end up looking for love in all the wrong places, which brings out the local trapper to remove the critter.

UNIDENTIFIED MALE: That alligator has eaten something recently. Look at that belly. That's probably a dog in there.

ZARRELLA (on camera): This is where gators are supposed to be out here in the Everglades, but it's not surprising to find them just about anywhere. The alligator is one of nature's greatest comeback stories.

(voice-over): Twenty-five years ago the alligator was an endangered species. Hunting and poaching had nearly wiped them out. Now there are more than 1 million alligators in Florida. No longer endangered, they are protected. And it is Fish and Wildfire Officer Bill Stiffler's (ph) job to make sure they stay that way. But he says people who feed the animals in their backyard lakes or canals turn the creatures into nuisance gators and sign their death warrants.

UNIDENTIFIED MALE: If you call in and you have an aggressive alligator and we have to come and respond to remove it, the animal is not just taken back out to the Everglades, it is killed. That is our policy.

ZARRELLA: It would be nice, wildlife officials say, if humans and alligators didn't have to co-exist. But in Florida where land is a premium, people and gators are increasingly calling the same territory home.

John Zarrella, CNN, Miami.

(END VIDEOTAPE)

PHILLIPS: Long legs are a key success for supermodels but they can also increase your chances of avoiding a killer. Details coming up in the health headlines.

And later a funeral marking a significant passing, not of a former president but of the last living Confederate widow. Her amazing story later on LIVE FROM...

(COMMERCIAL BREAK)

PHILLIPS: Well, we're talking phishing, we're not talking about casting a line. It's actually a pretty disturbing trend in online identity theft.

O'BRIEN: It's P-H-I-S-H. You have to see it, it's one of those visual things. We don't do that visual thing very well on TV, do we? No. I guess we do. Sherri (sic) Sylvester anyway reports on 2 million Americans were victims of this thing last year.

(BEGIN VIDEOTAPE) . LISA SYLVESTER, CNN FINANCIAL NEWS CORRESPONDENT (voice-over): Thieves have found a new way to tap into consumers' bank accounts. They don't even have to steal personal information. They just ask for it. It's called phishing. Criminals send out phony e-mails requesting bank information updates with a link to a fake Web site. It's almost impossible to tell the difference between this phony Fleet bank Web site and the real one.

AVIVAH LITAN, GARTNER CONSULTING: Even though it may say in your e-mail a legitimate Web site, hidden behind that address is the crook's address.

SYLVESTER: For identity theft victims clearing their names can take years. Sharon Jones has a pile of letters from creditors demanding payments for bills that are not hers. SHARON JONES, IDENTITY THEFT VICTIM: It has been a total nightmare because you never know when something else is going to pop up so you have to constantly check your credit report.

SYLVESTER: Phishing e-mail have increased 4000 percent in the past six months according to the Anti-Phishing Working Group, which includes Internet service providers, banks and law enforcement officials. Citibank, eBay and PayPal are the most common targets. But consumers can protect themselves by looking for tip-offs such as misspelled words and by not clicking on links even ones that appear legitimate.

DAVID JEVANS, ANTI-PHISHING WORKING GROUP: The most effective thing is to really open up a Web browser window and go directly to the bank yourself. Type in the address into the Web browser rather than relying on the link.

SYLVESTER: The financial and computer industries are working on standards to authenticate e-mail. In the meantime banks will reimburse victims of credit and checking account scams provided they're reported within two months.

(on camera): There's another growing trend in identity theft called Trojan horse or spyware. Consumers are sent a link and when they open it, they have unknowingly downloaded spyware software that records every keystroke including personal financial information.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

(MARKET REPORT)

(COMMERCIAL BREAK)

O'BRIEN: Welcome back to the CNN Center in Atlanta. This is LIVE FROM...

I'm Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. Here's what all new this half hour. Becoming a millionaire, more Americans are doing it. And apparently it's easier than ever. What you need to know to start accumulating wealth.

O'BRIEN: And a new look for those in uniform. A design change for the U.S. Army. We'll have details on that just ahead. But first the top stories that we're following for you.

PHILLIPS: Attention spam haters, if you're hoping to sign up for that much ballyhooed national do-not-e-mail registry, you are going to have to wait just a little longer. The Federal Trade Commission thinks that unscrupulous e-mailers could get hold of the list and find new victims. The FTC says the registry will have to wait until technology finds a way to authenticate e-mail senders. A big shot in the arm for a bill that would let Americans buy cheaper prescription drugs in Canada. AARP says it will back the legislation. With 36 million members, the AARP is the nation's largest group representing seniors. The proposals have been getting support from both parties in Congress but not from the White House.

They're greasy. They can be frozen but the Agriculture Department is officially classifying batter-coated french fries as a fresh vegetable. But before you rush to a hamburger joint to get your daily veggie requirement, be warned, new rules apply only to commerce not nutrition.

O'BRIEN: Well, do you find yourself digging under the couch cushions to find a little extra spending money at the end of the month? Then you'll be amazed and perhaps a little annoyed to hear that the number of U.S. millionaires increased 14 percent last year. Yes, more than 2 million of them. If you break it down, that's 1 in every 125 Americans. Not quite there yet? Well, it's your lucky day. David Bach joins us from New York, David is the author of "The Automatic Millionaire."

DAVID BACH, "THE AUTOMATIC MILLIONAIRE": Good afternoon.

O'BRIEN: From the Finish Rich seminars and contributor to "AMERICAN MORNING." Good to see you, sir.

BACH: Good to see you.

O'BRIEN: Surely this can't be automatic?

BACH: What amazed me about this new study is that only 2 million people in America right now have over a million dollars liquid outside of their real estate. That's a small percent, it's less than 1 percent. And so I wrote this book, "The Automatic Millionaire" because I want to help 10 million people right now in this country go from having on average less than $50,000 in savings to becoming a millionaire by 2030. And the reality is it is easy to do if you have a system in place that doesn't require you to have discipline or use a budget.

O'BRIEN: All right. Easy, easy is a relative term. As we talk about this I want you to really be realistic about what's easy. First of all, your first method here is to pay yourself first. What does that mean?

BACH: Pay yourself first means when you earn a paycheck, before you pay the government -- because the government takes money out of your paycheck automatically -- before you pay the government, the first person who has to be paid is you. One hour a day of your income.

If you are a baby boomer right now watching this, if you took one hour a day of your income, had that money automatically moved from your payroll to your retirement account, that could be a 401(k) plan, an IRA account. If your self-employed, it would be a SEP IRA. If you do this you will build hundreds of thousands of dollars in savings, people who are watching in their 20s and their 30s, you could have well over a million dollars because of compound interest by the time you retire. One hour a day of your income.

O'BRIEN: And, just a point on that, a million dollars, is that plenty these days for retirement depending on how you live?

BACH: Really depends on where you live. Right now I'm in New York City. It's not always easy to retire in a city like New York City on a million dollars.

But let's face it. Most Americans right now, could they retire on a million dollars? Absolutely. In fact, a lot could retire on as little as a quarter of a million dollars if they have a pension plan, Social Security and no debt.

So that leads to step No. 2 which is where will Americans find an hour a day of their income to save.

O'BRIEN: The latte factor.

BACH: Their latte factor. What I suggest you do is this: today look at where did you spend small amounts of money on little things. A latte for $3.50. Bottled water. It could be cigarettes Going out tonight for a martini. Little dollar amounts, $10 a day is enough to make your family rich.

If both you and your partner save $10 a day, it's over $7,000 which is three times what the average American family saves a year.

(UNINTELLIGIBLE) leaves the third step which...

O'BRIEN: Wait a minute. A lot of people don't think about this. They go to the Starbucks, drive in their SUV, the drive up window, buy the latte and then drive around for cheap gas.

(CROSSTALK)

BACH: We do these seminars. People can find our seminars at FinishRich.com. We do them and they're free, all over the country. People show up at my seminars and they say, David, I don't have any money to save. And they're sipping a latte as they tell me this.

The new thing is bottled water with vitamins in it. But whatever the little thing is, we've got the money. Average American family is making nearly $50,000 a year and saving almost nothing. So we need to change the flow of our money.

And that leads to really the third thing which is -- I got to tell you something, if you are renting, you need to be saving to buy a home. The best investment you will ever make in America is real estate. You want to buy your own home.

We know statistically that renters are poor in this country. The average renter has a net worth less than $5,000. Homeowners are worth almost 132 times -- sorry, 31 times more. They have a net worth of over $140,000 today.

So if you want to be rich, you need to buy your first home. And then the second thing is pay that home off early using an automatic payment plan. And what I recommend in the book is the idea of a biweekly mortgage.

Take that monthly mortgage payment, and chunk it down. Take that monthly mortgage payment of $1,000 and pay it $500 every two weeks. You'll take a 30-year mortgage, you'll pay it off in 23 years.

If you have a mortgage of over a quarter of a million dollars that will actually help you save $117,000 just in interest payments. Then you can go out and by all the lattes you want, go on vacation and save more for retirement.

O'BRIEN: And that final point there, David, how do you strike a balance between being frugal and doing some things that are after all what life is about?

BACH: A really good question. Here's what I say to really everybody at home. I don't want you to not have any fun. I want you to do though is not live paycheck to paycheck. And when we do surveys we see that so many Americans like one out of every three Americans, in some cases more, they tell us they're living paycheck to paycheck.

So while I don't want you to be frugal and not have fun, I want you to alleviate the stress in your life that's going from living paycheck to paycheck.

And I want you to the freedom that goes with knowing you've got some money in the bank for a cushion, but you've also got money you're saving for the future, that you own your home, that you're not letting the banks and government take advantage of you. And that you're on your way to being an automatic millionaire.

O'BRIEN: "Automatic Millionaire" is name of the book. David Bach is the author, runaway sensation. He'll be on "Oprah" later today. Enjoy your automatic millionaire run.

BACH: Thank you.

O'BRIEN: My pleasure -- Kyra.

PHILLIPS: Now he's going to be on "Oprah" he'll be a quadrillonaire.

(CROSSTALK)

O'BRIEN: What was he doing slumming here? We're not sure.

It's the news we've all been waiting for. No more tedious flossing required for healthy choppers. The minty fresh health headlines coming up.

LIVE FROM...'s favorite senior is a senora. And she's working out extra hard to make her Olympic dream come true. (CROSSTALK)

PHILLIPS: Yes, she is.

Speaking of cutie, hey, soldier, who are you wearing? A new look for GIs suitable for all kinds of combat. But tan boots? Really? LIVE FROM... asks the tough questions right after this.

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