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President Optimistically Cast Political Transition in Iraq as Just the Beginning

Aired June 29, 2004 - 14:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: President Bush is returning to Washington after a NATO summit that coincided with the hand-over of Iraqi sovereignty. CNN senior White House correspondent John King reports on Mr. Bush's parting words in Istanbul.
(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): In the shadow of an Istanbul mosque, the president optimistically cast the political transition in Iraq as just the beginning.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I believe that freedom is the future of the Middle East because I believe that freedom is the future of all humanity.

KING: Iraq's new government assumed power just a day ago, yet Mr. Bush said already it stands in stark contrast to oppressive regime in Iran and Syria.

BUSH: The rise of Iraqi democracy is bringing hope to reformers across the Middle East and sending a very different message to Tehran and Damascus.

KING: The backdrop was part of the message as the president held out Turkey as an example for those who questioned whether predominantly Muslim nations are suited for democracy.

And as he held out political reform as the antidote to the hatred that fuels terrorism, the president chastised his own country as among those that, when it came to the Middle East, for too long put security and oil ahead of human rights.

BUSH: It has not made Western nations more secure to ignore the cycle of dictatorship and extremism.

KING: At the NATO summit, Mr. Bush won a modest commitment to help train new Iraqi security forces and, in his speech before heading home, cast the transfer of sovereignty as the opening of a new chapter after months of setbacks.

BUSH: The world has seen a great event in the history of Iraq, in the history of the Middle East and in the history of liberty.

KING: The president is not scheduled to travel overseas again until after the November election, and his optimistic outlook on Iraq is very much aimed at shaping the political climate back home.

(on camera): Yet this new beginning the president speaks of is also for him a new period of political risk. Mr. Bush now has considerably less say over how Iraq is governed, yet still has nearly 140,000 troops there in the line of fire.

John King, CNN, Istanbul.

(END VIDEOTAPE)

PHILLIPS: It's a Trump world, literally. From hotels to casinos to TV and magazines? Donald Trump is working on a new business venture.

And now you can eat drink and be merry with a little less of a hangover. Can a prickly cactus be your cure for those dreadful mornings? We're shaking one up as LIVE FROM... returns.

(COMMERCIAL BREAK)

PHILLIPS: One day after self-rule retuned to Iraq, another historic event. Three coalition allies, the U.S., Australia and Denmark restored diplomatic ties with Iraq. Our David Ensor profiles the American ambassador that who his work cut out for him.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): With Paul Bremer's departure, Prime Minister Iyad al Allawi became the most powerful man in Iraq. The new top American, Ambassador John Negroponte, may be a power behind the scenes, though he is playing down his role.

JOHN NEGROPONTE, U.S. AMBASSADOR TO IRAQ: To offer support and assistance to the Iraqi people and government as Iraq reasserts its full sovereignty.

FRANK RICCIARDONE, AMBASSADOR, U.S.-IRAQ: No U.S. ambassador goes out expecting to run a foreign country, nor -- even if that were in his mind, the Iraqis wouldn't let him.

ENSOR: Workers have been rushing to transform one of Saddam's former palaces into the new U.S. embassy headquarters. From this building, Negroponte will lead the largest embassy in the world, about 1,000 Americans and 700 Iraqis. His deputy says security will be a constant concern.

JAMES JEFFREY, U.S. DEPUTY CHIEF OF MISSION: We receive incoming rocket and mortar fire in this vicinity quite often. But our goal is to ensure that we are not overrun, that we do not get significant hostile fire. And so far, we've been lucky.

ENSOR: In a powerful symbol of sovereignty, Iraq's new government will soon take over legal custody of Saddam Hussein. But American officials say they will still keep their hands on him. COLIN POWELL, SECRETARY OF STATE: I would expect that legal custody would be handed over shortly, but physical custody would remain in our hands for the foreseeable future.

ENSOR: American troops will still take orders from American commanders. But a major question is: what happens with the next Fallujah, the next major military challenge? It is not clear.

REUEL MARC GERECHT, MIDDLE EAST EXPERT: If you have people attacking the Americans, the Americans may want to respond with a good deal of force. There may be individuals in the government who don't want them to.

ENSOR (on camera): In theory, American commanders can do what they want. But if Prime Minister Allawi or his government object, that could cause commanders to think twice about taking on a fight. Finding the right balance between security and sovereignty for Iraqis may not be easy.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: What happens next in Iraq will certainly be an issue in the presidential election. What are Americans thinking right now about Iraq? Our senior political analyst Bill Schneider has some insight.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): The American public views the handover of power in Iraq more or less the same way Iraqis do, with hope but without illusions.

When questioned last week, Americans said they believed the handover will improve the situation in Iraq, as many Iraqis we talked to do.

UNIDENTIFIED MALE (through translator): We hope that we leave the past behind and lead a good life.

SCHNEIDER: Americans are cautiously optimistic that democracy will be established in Iraq, but the U.S. public is not optimistic that peace and security will be established. A concern shared by this member of the former Iraqi Governing Council.

UNIDENTIFIED MALE: I think we are in state of war, almost, and that's why in such cases even other governments, any country, they could take measures.

SCHNEIDER: It is progress, of course, that the terrorists are now on the other side, fighting the Iraqi government.

BUSH: 15 months ago, Iraq was a state sponsor of terrorism. Today Iraq's leaders, with our support, are systematically fighting terrorists across their country. SCHNEIDER: So do Americans see the handover as a sign that U.S. policy is succeeding? The answer is no.

By nearly 2 to 1, the public says the transfer of power is a sign that U.S. policy is failing because the United States is turning over power to the Iraqis without bringing stability to Iraq.

Republicans don't feel that way. But Democrats do, overwhelmingly, and so do independents.

As most Americans see it, the United States is saying to Iraq, the insurgency is primarily your problem. Does that mean U.S. policy is to cut and run? Absolutely not.

BUSH: We'll follow through, no matter how tough it gets on the ground.

SCHNEIDER: The United States is not running anywhere.

IYAD ALLAWI, IRAQI PRIME MINISTER (through translator): The transformation of societies will not take place in weeks or days or months but this transformation will take years.

SCHNEIDER: That's what Americans are worried about. Most Americans believe a significant number of U.S. forces will remain in Iraq for three years or more, but 70 percent of Americans don't think they should be there that long.

(on camera): The handover means the U.S. is no longer legally the occupying power. It's propping up a government with shaky authority. Americans believe that's progress, but not yet success.

Bill Schneider, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Well, another top story we have been talking about throughout the day, that's the law that was designed to protect children from online pornography.

Well, the Supreme Court is concerned the Child Online Protection Act may violate -- violate, rather -- the speech -- the free speech rights of adults. Today, by a vote of 5-4, the justices sent the case back to a lower court for a new trial.

Here to talk about it, Phil Kent, president of his own media consulting firm and author of "The Dark Side of Liberalism." Amy Goodman, host of the show "Democracy Now," she's the author of "The Exception to the Rulers."

Glad to have you both with us.

PHIL KENT, AUTHOR, "THE DARK SIDE OF LIBERALISM": Thanks, Kyra.

AMY GOODMAN, RADIO TALK SHOW HOST: It's good to be with you.

PHILLIPS: Let's start with you, Phil.

It's a pleasure to have you both.

Phil, let's start with you.

What was your first reaction when this came down today?

KENT: Well, it's been a long battle between those of us who want to keep filth and smut away from minors and of course balancing this with our free speech protection. But isn't it ironic that the U.S. Supreme Court had no problem with the speech restrictions with regard to the McCain-Feingold law, which is bad law and restricting the right of association and speech.

And yet, it seems smut-peddlers get a pass, although there is one good thing. It's going back to the lower court, as the majority opinion written by Justice Kennedy say. And technology I think is catching up with the law here. And we can have filters to protect minors. But that's the bottom line. We have got to protect children and minors.

PHILLIPS: Amy, are the smut peddlers being protected here?

GOODMAN: I think what is of grave concern in a case like this is that, in a time when AIDS is epidemic, not only in this country and around the world, that we would be talking about the criminalizing of Web sites that deal with safe sex, that deal with sex and the disabled, people getting access to information. It's why organizations like Planned Parenthood and the American Civil Liberties Union are gravely concerned, also Web sites that deal with gay and lesbian sexuality. This was way too far-reaching.

PHILLIPS: Well, let's talk about the filters.

Phil, what exactly will kids not be able to see? I mean, would this block out what Amy is pointing out to be the Planned Parenthood Web sites and other Web sites that might help them deal with issues like homosexuality and sex?

KENT: Well, yes, obviously, I think we want to get people on educational Web sites. But we also have to realize that they are minors. And I think we are going to have to use filters like we are using in libraries and schools. So the technology is getting there.

But I'm a federalist. And this is what this country was founded on. And I wish we would let our legislatures write these laws. And I think the American people are getting tired of the courts legislating in all too many areas. Free speech, yes, but I am -- as I say, glad it's going back to the lower courts and I hope we can get this right to protect children.

PHILLIPS: Well, let's talk about the role of libraries with regard to access of information.

Amy, how do you see that role? GOODMAN: Well, it's very important that people who go into libraries, who use them, these precious public spaces in a rapidly privatizing world, will be able to get access to the kind of information they need to get across the board.

It's very important that people have information about sexuality, about sexual health, about issues that would be criminalized under a law like this. It is far too -- it reaches too far, too broadly. And I think it's why even the most conservative Supreme Court justice, Clarence Thomas, joined in the majority opinion.

PHILLIPS: So, how do you get that access, Phil, but protect kids?

KENT: Well, when we're talking about libraries, obviously, these are taxpayer-subsidized institutions. And so, again, the community has the right to set the standards. We know this. That's a precedent.

And so we know what can be a line drawn between indecency and obscenity. So this is where the filters come in. And I guess we both agree that this is not a great victory yet for the smut peddlers. We are coming back. It's a long-term vision that we have to have to get the reform we need.

PHILLIPS: Amy Goodman, Phil Kent, we'll continue to follow it, especially as it gets knocked down to a lower court. Thank you.

GOODMAN: Thank you.

KENT: Thanks.

PHILLIPS: What does a cactus and drinking have in common? Well, it's not a new tropical drink, but it's possibly a cure for the hangover blues.

And your chance to wine and dine with the world's second richest man is just a click away on eBay. Bidding for lunch with Warren Buffett -- when LIVE FROM returns.

(COMMERCIAL BREAK)

PHILLIPS: Well, -- actually we have a bit of developing news coming in right now. We're going to take you straight to the Pentagon.

Barbara Starr, Pentagon correspondent, has more on the fate of that Marine that we have seen on that videotape, Corporal Wassef Hassoun.

What do we know, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, the Pentagon is now preparing a statement, we are told, that will classify the Marine corporal for the first time as captured. That statement has not yet been officially released. But CNN has been given a copy of it in which the Marines say their thoughts and prayers are with the family. And they say that Corporal Hassoun has -- quote -- "officially been listed now as captured." While his absence initially had led investigators to believe he was missing from his duty station in Iraq, the video that has now been shown on international television, the Marines say, depict him -- quote -- "being held against his will."

So, although it has not been officially announced here at the Pentagon, the corporal has now been reclassified as captured, we are told. This case is still a bit mysterious. Corporal Hassoun was last seen on June 19. He was reported missing the next morning. He did not report for duty.

It is believed that he left of his own free will initially, that he was not captured from his base in Iraq, if you will, that he left, that possibly he had money with him and that possibly he was trying to make his way to his family in Lebanon. That is a working theory by the U.S. military as to what happened. How he then fell into the hands of insurgents and then appeared captured on this video is not clear.

That is a matter of investigation. The military says it informed his family soon after he disappeared, but it did not make a public announcement because it did not want people, insurgents, to know that a Marine was out on the countryside in Iraq, if you will, unprotected.

But now today, they tell us they have seen the video and they are acknowledging reality that this corporal is now officially listed as captured -- Kyra.

PHILLIPS: Barbara, real quickly, now officially listed as captured. Does that still take away the possibility that he might have been sympathizing? There's been talk out there about that. And does that completely delete the possibility that he could have gone AWOL? Or are you saying AWOL is still a possibility and then he could have been captured while doing that?

STARR: The real -- you ask all very good questions, Kyra. And the real frustration at the Pentagon is that they simply do not know, of course, because they have certainly had no opportunity to question him. They haven't found him. They don't know what the exact circumstances are.

He was last seen on the evening of June 19 with his personal weapon. It is believed he also had some cash of his own. That is the working theory. The working theory remains that he may have had some problems and was trying to, under his own power, reach his family in Lebanon. That led to the initial belief that he was on unauthorized leave, simply trying to make his way to Lebanon to meet family members there.

But, to be clear, they don't actually know that. That is a theory based on some of their initial investigation. The whole matter remains under investigation because what they certainly don't know, high-level officials say they simply don't know how he fell into the hands of insurgents. But the change today is that they believe now, having looked at this videotape in detail, that he is being held against his will, and that has led them to classify him as captured -- Kyra.

PHILLIPS: All right, our Barbara Starr live from the Pentagon -- thanks so much, Barbara.

We're going to take a serious turn now to -- well, I guess it could be a serious subject also -- to health news. Drinking a little alcohol can be fun, but drinking too much can come back to haunt you.

CNN medical correspondent Holly Firfer has done some research.

I'd like to know what kind of research exactly that she did to tell us what she learned about this.

(LAUGHTER)

HOLLY FIRFER, CNN MEDICAL CORRESPONDENT: Oh, yes. How did you research for the story? I have got to believe it, reporter involvement.

OK, we've been there before, a little wine, a couple beers, maybe a mixed drink or three, a fun night out that turns into a morning of regret. So what do you do when it feels like you have been hit by a Mack truck? We're talking about hangovers.

Well, researchers from Tulane University have found a possible cure that could help in reducing at least some of the symptoms. Their remedy, the prickly pear cactus. In a study, 55 volunteers took a dietary supplement of prickly pear extract. Then they drank between five to 10 drinks, depending on their body weight, over a period of four hours.

Those who took the extract in a dietary supplement capsule reported having 40 percent less nausea the next morning, 30 percent less loss of appetite and 20 percent less dry mouth. Now, just a note, the prickly pear did not help with headaches, which is one of the top three symptoms of a hangover. Researchers decided to examine, by the way, the cactus because it's used to treat systematic inflammation involved in deep sea diving and high-altitude sickness, the same kind of inflammation they suspected are partly responsible for hangovers.

So they looked at it. That's what you found. So, if you accidentally overindulge, you might want to think about prickly pear next time.

PHILLIPS: So how do cactuses do in Atlanta?

(LAUGHTER)

PHILLIPS: Do we have to toss out the ferns now and...

(LAUGHTER)

FIRFER: Exactly. You're going to have to import that.

PHILLIPS: OK, thanks very much, Holly.

FIRFER: Sure.

(FINANCIAL UPDATE)

PHILLIPS: Are we going to move on? What are we moving on to?

We're going to take a break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Checking entertainment headlines this June 29, Mary- Kate health update. Ashley Olsen tells "People" magazine the health problem her brunette sister is getting treatment for is nothing new, but she doesn't elaborate on the illness. Mary-Kate entered a facility last week, reportedly seeking help for an eating disorder. Ashley says her twin in hanging in there.

The pride of Snellville, Georgia, hits the airwaves. "American Idol" finalist Diana DeGarmo's first single, "Dreams," is being released today. DeGarmo says, she is so excited about the achievement that, when she hears herself on the radio, she will probably have a heart attack. Next, she hopes to do a full album.

Coming to a newsstand near you, Donald Trump is cashing in on his newfound popularity from "The Apprentice." He is relaunching "Trump World." The magazine, which touts the lifestyles of the rich and famous, hits stands in September.

Politics and popcorn can mix. Moviegoers are flocking to the anti-Bush film "Fahrenheit 9/11" in astonishing numbers for a documentary. But will its success carry over from the box office to the voting booth?

CNN's Jason Carroll takes a look.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP, "FAHRENHEIT 9/11")

MICHAEL MOORE, FILMMAKER: With everything going wrong, he did what any of us would do. He went on vacation.

(END VIDEO CLIP)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Michael Moore's Fahrenheit 9/11 has already broken box office records of $29 million plus opening weekend, unprecedented for a documentary, his fans hailing him a hero.

UNIDENTIFIED MALE: Michael Moore for president!

CARROLL: Moore has made no secret about his hopes for Fahrenheit. He wants it to influence the presidential election, even people in closely contested states like Michigan and Florida.

UNIDENTIFIED MALE: Fabulous. I'm just too emotional.

CARROLL: In Sarasota, Florida, Democrats campaigned outside one sold-out theater. In Cleveland, Ohio, more sold-out shows.

UNIDENTIFIED FEMALE: This is a call to vote.

CARROLL: So how's "Fahrenheit" really playing out in the swing states? The company that counts box office receipts says so far it's performing as a blockbuster.

PAUL DERGARABEDIAN, EXHIBITOR RELATIONS: Regardless of whether it was swing state or where the geographical location was.

NORM ORNSTEIN, POLITICAL ANALYST: Even for a very successful movie, the number of people who actually go and see that movie is tiny is comparison to the electorate as a whole.

CARROLL: But "Fahrenheit" is selling out not necessarily for the reason some might think. It had so much opening buzz yet it's playing in 900 theaters nationwide, half the number most commercial films usually start with. Some entertainment insiders say it was bound to sell out but its shelf life will be its true test.

TOM O'NEIL, SENIOR EDITOR, "IN TOUCH WEEKLY": "Fahrenheit" has now got to hang in there through the political conventions of July and August if it wants to have a sustained impact.

CARROLL: Easier said than done. Lately blockbusters have fallen off dramatically after strong openings. "Harry Potter" fell off 60 percent in its second week. If Moore's political opponents don't find comfort in a little magic, a superhero might come to their rescue. "Spider-Man 2" opens this week.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, since Jason Carroll filed the piece, final box office numbers from the weekend show that the film grossed almost $24 million. That's $2 million more than first reported.

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 29, 2004 - 14:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: President Bush is returning to Washington after a NATO summit that coincided with the hand-over of Iraqi sovereignty. CNN senior White House correspondent John King reports on Mr. Bush's parting words in Istanbul.
(BEGIN VIDEOTAPE)

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): In the shadow of an Istanbul mosque, the president optimistically cast the political transition in Iraq as just the beginning.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I believe that freedom is the future of the Middle East because I believe that freedom is the future of all humanity.

KING: Iraq's new government assumed power just a day ago, yet Mr. Bush said already it stands in stark contrast to oppressive regime in Iran and Syria.

BUSH: The rise of Iraqi democracy is bringing hope to reformers across the Middle East and sending a very different message to Tehran and Damascus.

KING: The backdrop was part of the message as the president held out Turkey as an example for those who questioned whether predominantly Muslim nations are suited for democracy.

And as he held out political reform as the antidote to the hatred that fuels terrorism, the president chastised his own country as among those that, when it came to the Middle East, for too long put security and oil ahead of human rights.

BUSH: It has not made Western nations more secure to ignore the cycle of dictatorship and extremism.

KING: At the NATO summit, Mr. Bush won a modest commitment to help train new Iraqi security forces and, in his speech before heading home, cast the transfer of sovereignty as the opening of a new chapter after months of setbacks.

BUSH: The world has seen a great event in the history of Iraq, in the history of the Middle East and in the history of liberty.

KING: The president is not scheduled to travel overseas again until after the November election, and his optimistic outlook on Iraq is very much aimed at shaping the political climate back home.

(on camera): Yet this new beginning the president speaks of is also for him a new period of political risk. Mr. Bush now has considerably less say over how Iraq is governed, yet still has nearly 140,000 troops there in the line of fire.

John King, CNN, Istanbul.

(END VIDEOTAPE)

PHILLIPS: It's a Trump world, literally. From hotels to casinos to TV and magazines? Donald Trump is working on a new business venture.

And now you can eat drink and be merry with a little less of a hangover. Can a prickly cactus be your cure for those dreadful mornings? We're shaking one up as LIVE FROM... returns.

(COMMERCIAL BREAK)

PHILLIPS: One day after self-rule retuned to Iraq, another historic event. Three coalition allies, the U.S., Australia and Denmark restored diplomatic ties with Iraq. Our David Ensor profiles the American ambassador that who his work cut out for him.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): With Paul Bremer's departure, Prime Minister Iyad al Allawi became the most powerful man in Iraq. The new top American, Ambassador John Negroponte, may be a power behind the scenes, though he is playing down his role.

JOHN NEGROPONTE, U.S. AMBASSADOR TO IRAQ: To offer support and assistance to the Iraqi people and government as Iraq reasserts its full sovereignty.

FRANK RICCIARDONE, AMBASSADOR, U.S.-IRAQ: No U.S. ambassador goes out expecting to run a foreign country, nor -- even if that were in his mind, the Iraqis wouldn't let him.

ENSOR: Workers have been rushing to transform one of Saddam's former palaces into the new U.S. embassy headquarters. From this building, Negroponte will lead the largest embassy in the world, about 1,000 Americans and 700 Iraqis. His deputy says security will be a constant concern.

JAMES JEFFREY, U.S. DEPUTY CHIEF OF MISSION: We receive incoming rocket and mortar fire in this vicinity quite often. But our goal is to ensure that we are not overrun, that we do not get significant hostile fire. And so far, we've been lucky.

ENSOR: In a powerful symbol of sovereignty, Iraq's new government will soon take over legal custody of Saddam Hussein. But American officials say they will still keep their hands on him. COLIN POWELL, SECRETARY OF STATE: I would expect that legal custody would be handed over shortly, but physical custody would remain in our hands for the foreseeable future.

ENSOR: American troops will still take orders from American commanders. But a major question is: what happens with the next Fallujah, the next major military challenge? It is not clear.

REUEL MARC GERECHT, MIDDLE EAST EXPERT: If you have people attacking the Americans, the Americans may want to respond with a good deal of force. There may be individuals in the government who don't want them to.

ENSOR (on camera): In theory, American commanders can do what they want. But if Prime Minister Allawi or his government object, that could cause commanders to think twice about taking on a fight. Finding the right balance between security and sovereignty for Iraqis may not be easy.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: What happens next in Iraq will certainly be an issue in the presidential election. What are Americans thinking right now about Iraq? Our senior political analyst Bill Schneider has some insight.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): The American public views the handover of power in Iraq more or less the same way Iraqis do, with hope but without illusions.

When questioned last week, Americans said they believed the handover will improve the situation in Iraq, as many Iraqis we talked to do.

UNIDENTIFIED MALE (through translator): We hope that we leave the past behind and lead a good life.

SCHNEIDER: Americans are cautiously optimistic that democracy will be established in Iraq, but the U.S. public is not optimistic that peace and security will be established. A concern shared by this member of the former Iraqi Governing Council.

UNIDENTIFIED MALE: I think we are in state of war, almost, and that's why in such cases even other governments, any country, they could take measures.

SCHNEIDER: It is progress, of course, that the terrorists are now on the other side, fighting the Iraqi government.

BUSH: 15 months ago, Iraq was a state sponsor of terrorism. Today Iraq's leaders, with our support, are systematically fighting terrorists across their country. SCHNEIDER: So do Americans see the handover as a sign that U.S. policy is succeeding? The answer is no.

By nearly 2 to 1, the public says the transfer of power is a sign that U.S. policy is failing because the United States is turning over power to the Iraqis without bringing stability to Iraq.

Republicans don't feel that way. But Democrats do, overwhelmingly, and so do independents.

As most Americans see it, the United States is saying to Iraq, the insurgency is primarily your problem. Does that mean U.S. policy is to cut and run? Absolutely not.

BUSH: We'll follow through, no matter how tough it gets on the ground.

SCHNEIDER: The United States is not running anywhere.

IYAD ALLAWI, IRAQI PRIME MINISTER (through translator): The transformation of societies will not take place in weeks or days or months but this transformation will take years.

SCHNEIDER: That's what Americans are worried about. Most Americans believe a significant number of U.S. forces will remain in Iraq for three years or more, but 70 percent of Americans don't think they should be there that long.

(on camera): The handover means the U.S. is no longer legally the occupying power. It's propping up a government with shaky authority. Americans believe that's progress, but not yet success.

Bill Schneider, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: Well, another top story we have been talking about throughout the day, that's the law that was designed to protect children from online pornography.

Well, the Supreme Court is concerned the Child Online Protection Act may violate -- violate, rather -- the speech -- the free speech rights of adults. Today, by a vote of 5-4, the justices sent the case back to a lower court for a new trial.

Here to talk about it, Phil Kent, president of his own media consulting firm and author of "The Dark Side of Liberalism." Amy Goodman, host of the show "Democracy Now," she's the author of "The Exception to the Rulers."

Glad to have you both with us.

PHIL KENT, AUTHOR, "THE DARK SIDE OF LIBERALISM": Thanks, Kyra.

AMY GOODMAN, RADIO TALK SHOW HOST: It's good to be with you.

PHILLIPS: Let's start with you, Phil.

It's a pleasure to have you both.

Phil, let's start with you.

What was your first reaction when this came down today?

KENT: Well, it's been a long battle between those of us who want to keep filth and smut away from minors and of course balancing this with our free speech protection. But isn't it ironic that the U.S. Supreme Court had no problem with the speech restrictions with regard to the McCain-Feingold law, which is bad law and restricting the right of association and speech.

And yet, it seems smut-peddlers get a pass, although there is one good thing. It's going back to the lower court, as the majority opinion written by Justice Kennedy say. And technology I think is catching up with the law here. And we can have filters to protect minors. But that's the bottom line. We have got to protect children and minors.

PHILLIPS: Amy, are the smut peddlers being protected here?

GOODMAN: I think what is of grave concern in a case like this is that, in a time when AIDS is epidemic, not only in this country and around the world, that we would be talking about the criminalizing of Web sites that deal with safe sex, that deal with sex and the disabled, people getting access to information. It's why organizations like Planned Parenthood and the American Civil Liberties Union are gravely concerned, also Web sites that deal with gay and lesbian sexuality. This was way too far-reaching.

PHILLIPS: Well, let's talk about the filters.

Phil, what exactly will kids not be able to see? I mean, would this block out what Amy is pointing out to be the Planned Parenthood Web sites and other Web sites that might help them deal with issues like homosexuality and sex?

KENT: Well, yes, obviously, I think we want to get people on educational Web sites. But we also have to realize that they are minors. And I think we are going to have to use filters like we are using in libraries and schools. So the technology is getting there.

But I'm a federalist. And this is what this country was founded on. And I wish we would let our legislatures write these laws. And I think the American people are getting tired of the courts legislating in all too many areas. Free speech, yes, but I am -- as I say, glad it's going back to the lower courts and I hope we can get this right to protect children.

PHILLIPS: Well, let's talk about the role of libraries with regard to access of information.

Amy, how do you see that role? GOODMAN: Well, it's very important that people who go into libraries, who use them, these precious public spaces in a rapidly privatizing world, will be able to get access to the kind of information they need to get across the board.

It's very important that people have information about sexuality, about sexual health, about issues that would be criminalized under a law like this. It is far too -- it reaches too far, too broadly. And I think it's why even the most conservative Supreme Court justice, Clarence Thomas, joined in the majority opinion.

PHILLIPS: So, how do you get that access, Phil, but protect kids?

KENT: Well, when we're talking about libraries, obviously, these are taxpayer-subsidized institutions. And so, again, the community has the right to set the standards. We know this. That's a precedent.

And so we know what can be a line drawn between indecency and obscenity. So this is where the filters come in. And I guess we both agree that this is not a great victory yet for the smut peddlers. We are coming back. It's a long-term vision that we have to have to get the reform we need.

PHILLIPS: Amy Goodman, Phil Kent, we'll continue to follow it, especially as it gets knocked down to a lower court. Thank you.

GOODMAN: Thank you.

KENT: Thanks.

PHILLIPS: What does a cactus and drinking have in common? Well, it's not a new tropical drink, but it's possibly a cure for the hangover blues.

And your chance to wine and dine with the world's second richest man is just a click away on eBay. Bidding for lunch with Warren Buffett -- when LIVE FROM returns.

(COMMERCIAL BREAK)

PHILLIPS: Well, -- actually we have a bit of developing news coming in right now. We're going to take you straight to the Pentagon.

Barbara Starr, Pentagon correspondent, has more on the fate of that Marine that we have seen on that videotape, Corporal Wassef Hassoun.

What do we know, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, the Pentagon is now preparing a statement, we are told, that will classify the Marine corporal for the first time as captured. That statement has not yet been officially released. But CNN has been given a copy of it in which the Marines say their thoughts and prayers are with the family. And they say that Corporal Hassoun has -- quote -- "officially been listed now as captured." While his absence initially had led investigators to believe he was missing from his duty station in Iraq, the video that has now been shown on international television, the Marines say, depict him -- quote -- "being held against his will."

So, although it has not been officially announced here at the Pentagon, the corporal has now been reclassified as captured, we are told. This case is still a bit mysterious. Corporal Hassoun was last seen on June 19. He was reported missing the next morning. He did not report for duty.

It is believed that he left of his own free will initially, that he was not captured from his base in Iraq, if you will, that he left, that possibly he had money with him and that possibly he was trying to make his way to his family in Lebanon. That is a working theory by the U.S. military as to what happened. How he then fell into the hands of insurgents and then appeared captured on this video is not clear.

That is a matter of investigation. The military says it informed his family soon after he disappeared, but it did not make a public announcement because it did not want people, insurgents, to know that a Marine was out on the countryside in Iraq, if you will, unprotected.

But now today, they tell us they have seen the video and they are acknowledging reality that this corporal is now officially listed as captured -- Kyra.

PHILLIPS: Barbara, real quickly, now officially listed as captured. Does that still take away the possibility that he might have been sympathizing? There's been talk out there about that. And does that completely delete the possibility that he could have gone AWOL? Or are you saying AWOL is still a possibility and then he could have been captured while doing that?

STARR: The real -- you ask all very good questions, Kyra. And the real frustration at the Pentagon is that they simply do not know, of course, because they have certainly had no opportunity to question him. They haven't found him. They don't know what the exact circumstances are.

He was last seen on the evening of June 19 with his personal weapon. It is believed he also had some cash of his own. That is the working theory. The working theory remains that he may have had some problems and was trying to, under his own power, reach his family in Lebanon. That led to the initial belief that he was on unauthorized leave, simply trying to make his way to Lebanon to meet family members there.

But, to be clear, they don't actually know that. That is a theory based on some of their initial investigation. The whole matter remains under investigation because what they certainly don't know, high-level officials say they simply don't know how he fell into the hands of insurgents. But the change today is that they believe now, having looked at this videotape in detail, that he is being held against his will, and that has led them to classify him as captured -- Kyra.

PHILLIPS: All right, our Barbara Starr live from the Pentagon -- thanks so much, Barbara.

We're going to take a serious turn now to -- well, I guess it could be a serious subject also -- to health news. Drinking a little alcohol can be fun, but drinking too much can come back to haunt you.

CNN medical correspondent Holly Firfer has done some research.

I'd like to know what kind of research exactly that she did to tell us what she learned about this.

(LAUGHTER)

HOLLY FIRFER, CNN MEDICAL CORRESPONDENT: Oh, yes. How did you research for the story? I have got to believe it, reporter involvement.

OK, we've been there before, a little wine, a couple beers, maybe a mixed drink or three, a fun night out that turns into a morning of regret. So what do you do when it feels like you have been hit by a Mack truck? We're talking about hangovers.

Well, researchers from Tulane University have found a possible cure that could help in reducing at least some of the symptoms. Their remedy, the prickly pear cactus. In a study, 55 volunteers took a dietary supplement of prickly pear extract. Then they drank between five to 10 drinks, depending on their body weight, over a period of four hours.

Those who took the extract in a dietary supplement capsule reported having 40 percent less nausea the next morning, 30 percent less loss of appetite and 20 percent less dry mouth. Now, just a note, the prickly pear did not help with headaches, which is one of the top three symptoms of a hangover. Researchers decided to examine, by the way, the cactus because it's used to treat systematic inflammation involved in deep sea diving and high-altitude sickness, the same kind of inflammation they suspected are partly responsible for hangovers.

So they looked at it. That's what you found. So, if you accidentally overindulge, you might want to think about prickly pear next time.

PHILLIPS: So how do cactuses do in Atlanta?

(LAUGHTER)

PHILLIPS: Do we have to toss out the ferns now and...

(LAUGHTER)

FIRFER: Exactly. You're going to have to import that.

PHILLIPS: OK, thanks very much, Holly.

FIRFER: Sure.

(FINANCIAL UPDATE)

PHILLIPS: Are we going to move on? What are we moving on to?

We're going to take a break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Checking entertainment headlines this June 29, Mary- Kate health update. Ashley Olsen tells "People" magazine the health problem her brunette sister is getting treatment for is nothing new, but she doesn't elaborate on the illness. Mary-Kate entered a facility last week, reportedly seeking help for an eating disorder. Ashley says her twin in hanging in there.

The pride of Snellville, Georgia, hits the airwaves. "American Idol" finalist Diana DeGarmo's first single, "Dreams," is being released today. DeGarmo says, she is so excited about the achievement that, when she hears herself on the radio, she will probably have a heart attack. Next, she hopes to do a full album.

Coming to a newsstand near you, Donald Trump is cashing in on his newfound popularity from "The Apprentice." He is relaunching "Trump World." The magazine, which touts the lifestyles of the rich and famous, hits stands in September.

Politics and popcorn can mix. Moviegoers are flocking to the anti-Bush film "Fahrenheit 9/11" in astonishing numbers for a documentary. But will its success carry over from the box office to the voting booth?

CNN's Jason Carroll takes a look.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP, "FAHRENHEIT 9/11")

MICHAEL MOORE, FILMMAKER: With everything going wrong, he did what any of us would do. He went on vacation.

(END VIDEO CLIP)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Michael Moore's Fahrenheit 9/11 has already broken box office records of $29 million plus opening weekend, unprecedented for a documentary, his fans hailing him a hero.

UNIDENTIFIED MALE: Michael Moore for president!

CARROLL: Moore has made no secret about his hopes for Fahrenheit. He wants it to influence the presidential election, even people in closely contested states like Michigan and Florida.

UNIDENTIFIED MALE: Fabulous. I'm just too emotional.

CARROLL: In Sarasota, Florida, Democrats campaigned outside one sold-out theater. In Cleveland, Ohio, more sold-out shows.

UNIDENTIFIED FEMALE: This is a call to vote.

CARROLL: So how's "Fahrenheit" really playing out in the swing states? The company that counts box office receipts says so far it's performing as a blockbuster.

PAUL DERGARABEDIAN, EXHIBITOR RELATIONS: Regardless of whether it was swing state or where the geographical location was.

NORM ORNSTEIN, POLITICAL ANALYST: Even for a very successful movie, the number of people who actually go and see that movie is tiny is comparison to the electorate as a whole.

CARROLL: But "Fahrenheit" is selling out not necessarily for the reason some might think. It had so much opening buzz yet it's playing in 900 theaters nationwide, half the number most commercial films usually start with. Some entertainment insiders say it was bound to sell out but its shelf life will be its true test.

TOM O'NEIL, SENIOR EDITOR, "IN TOUCH WEEKLY": "Fahrenheit" has now got to hang in there through the political conventions of July and August if it wants to have a sustained impact.

CARROLL: Easier said than done. Lately blockbusters have fallen off dramatically after strong openings. "Harry Potter" fell off 60 percent in its second week. If Moore's political opponents don't find comfort in a little magic, a superhero might come to their rescue. "Spider-Man 2" opens this week.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Well, since Jason Carroll filed the piece, final box office numbers from the weekend show that the film grossed almost $24 million. That's $2 million more than first reported.

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