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Iran Security Failed to I.D. al Qaeda Members; Arafat Refuses Resignation of Prime Minister; Hawk Caused California Fire

Aired July 19, 2004 - 12:58   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)
MICHAEL ISIKOFF, "NEWSWEEK": The Iranian security services by having this arrangement were acting as -- helping to facilitate the September 11 attacks.

(END VIDEO CLIP)

MILES O'BRIEN, CNN ANCHOR: 9/11 Commission stunner: connecting the dots between Iran and the al Qaeda terrorists who struck America.

ADRIAN BASCHUK, CNN CORRESPONDENT: I'm Adrian Baschuk in Eagle, Colorado, where Kobe Bryant returns to court, this time teaming up with the prosecution to get cameras banned from the trial. We'll have that story coming up.

KYRA PHILLIPS, CNN ANCHOR: Up in flames: a fiery crash for NASCAR's Dale Earnhardt Jr. A racing legend joins us to talk about what it's like inside a car on fire.

O'BRIEN: And delaying a debilitating condition, a promising treatment to beat back the onset of Alzheimer's disease.

From the CNN Center in Atlanta, I'm Miles O'Brien. Good to see you.

PHILLIPS: And I'm Kyra Philips. CNN's LIVE FROM starts right now.

Up first this hour, secret passage. It's a bombshell from the independent panel investigating September 11, word that Iranian border guards were ordered not to stamp the passports of al Qaeda members traveling through Iran from Afghanistan in late 2000 and early 2001. The commission won't release its very long-awaited final report until Thursday, but the Iranian connection first sent out in a U.S. government memo leaked over the weekend, setting of a new wave of second-guessing over the U.S. focus on Iraq.

Investigative reporter Michael Isikoff laid out the story for "Newsweek."

(BEGIN VIDEOTAPE)

ISIKOFF: Eight to 10 of the so-called "muscle hijackers," the hijackers who came in in -- starting in April, 2001 and served as the sort of backup to the pilots to -- on September 11 that allowed the hijacking to take place had gone from the Afghan training camps through Iran, and had clean passports.

In other words, when they came into the United States, they had no stamps indicating they had been to either Afghanistan or Iran, which would have been red flags for U.S. border inspectors.

There appears to have been a general policy by the Iranian security services to ensure that al Qaeda fighters coming from the Afghan training camps did not have stamps placed in their passports.

(END VIDEO CLIP)

PHILLIPS: The 9/11 report will not conclude Iran knowingly conspired on the 9/11 hijackings. With more on that and reaction from the West Wing, let's bring CNN White House correspondent Dana Bash -- Dana.

DANA BASH, CNN CORRESPONDENT: Well, Kyra, over the weekend, the acting CIA director, John McLaughlin, also confirmed that the U.S. government does believe eight out of the 19 9/11 hijackers did pass through the country of Iran before coming to the United States.

But he also said that there is no evidence, the government believes as of now, that the Iranian government actually supported. Or, more importantly, he said there's no evidence, as far as the government believes, that they actually were involved in the 9/11 plot.

Now today the president noted all of that. Nevertheless, he did say that the U.S. government is still digging into the facts, he called it. But he also noted and used the opportunity to call on Iran to stop harboring al Qaeda and to stop its nuclear program.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And I have made it clear that if the Iranians would like to have better relations with the United States, there are some things they must do.

For example, they're harboring al Qaeda leadership there, and we've asked that they be turned over to their respective countries.

Secondly, they've got a nuclear weapons program that they need to dismantle. We're working with other countries to encourage them to do so.

Thirdly, they've got to stop funding terrorist organizations such as Hezbollah that create great dangers in parts of the world.

(END VIDEO CLIP)

BASH: Now Democrats have already seized on this, for example, Senator Dick Durbin of Illinois, a member of the intelligence committee, said yesterday that if there was any connection between Iran and September 11, perhaps the administration was focused on the wrong country, wrongly focused on the country of Iraq, suggesting that, if the president and the administration was and still is saying that there were connections between the two countries, that they also should have looked at Iran.

Now the White House, for their part, says that they do certainly take Iran as a threat, but as they say about North Korea, they treat Iran and other countries with different responses. Different countries deserve different responses -- Kyra.

PHILLIPS: Dana Bash, live from the White House. We're going to talk more about all this in the next hour of LIVE FROM with foreign policy analyst Rob Sabani (ph) of Georgetown University.

MILES O'BRIEN, ANCHOR: To the Palestinian territories now, where an apparent Israeli missile strike on a militant safe house was merely a distraction from the real battles underway in Palestinian politics.

CNN's Alessio Vinci has the latest on the power struggles and potential power vacuum that is driving Palestinians, especially Gazans, to desperation.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT: Palestinian Prime Minister Ahmed Qorei, saying he's offered to resign. He still stands, and he's waiting for a written response by the chairman of the Palestinian authority, Yasser Arafat, who has already rejected twice verbally his offer to resign over the last two days.

The prime minister telling reporters at the end of a cabinet session in the West Bank city of Ramallah that the state of chaos in and violence in Gaza forced him to ask for the resignation. However, Mr. Qorei also said that the vast majority of the ministers in his own cabinet are opposing his resignation.

Mr. Qorei also appealed for calm, saying that the fighting in the streets of Gaza is not the way to resolve the issue of corruption in the Gaza Strip and the West Bank.

And addressing the crisis over there, he said that the cabinet had formed a committee with a specific task to meet with Chairman Arafat in the coming days and convey to him the cabinet's concerns over the lack of security in Gaza and the resulting violence.

AHMED QOREI, PALESTINIAN PRIME MINISTER (through translator): This is also a demand and appeal to President Yasser Arafat, who is the point of consensus for everybody not in the Gaza state, the consensus for the Gaza Strip and the West Bank.

There could be a difference with him but not over it, but about that's why we say time has come for you to activate our apparatuses on -- based on right steps. It is about time to appoint the suitable person and the suitable position.

This is an appeal that is being sent from this cabinet to President Arafat.

VINCI (voice-over): Violence erupted in Gaza after Arafat announced a series of new appointments of key security officials. Among them, his own nephew as head of national security, a move that sparked violent protests in Gaza over the weekend with militants, as well as members of Arafat's own Fattah movement attacking some of the symbols of Palestinian authority, burning to the ground a police station and attacking the headquarters of the Palestinian intelligence in Rafah with hand grenades and fire bombs, resulting in the wounding of at least ten people.

Adding to the confusion at this time, both the old and new chief of national security claim they are in charge of national security in Gaza, fueling some speculation that the situation is far from over in Gaza. There's a lot of confusion of who is in charge of those security services.

Meanwhile, there has been a large explosion in the Shatti refugee camp, also in Gaza, the house of a known Palestinian militant leader apparently the target of an Israeli targeted assassination attempt.

Sources within the Palestinian Popular Resistance, which is an umbrella organization representing a number of Palestinian militant groups, say that the leader of this group left the house shortly before the explosion took place and was unhurt. However, three people have been injured as a result of this explosion, one of them seriously.

Witnesses say they saw an Israeli drone in the sky just before the blast, speculating that this explosion may have been the result of a targeted killing by Israeli forces.

Meanwhile, the Israeli defense officials are not commenting on the incident.

(on camera) Alessio Vinci, CNN, Jerusalem.

(END VIDEOTAPE)

PHILLIPS: A truck bomb in Baghdad, drive-by assassination and farewell Filipinos. CNN's Michael Holmes is in the Iraqi capital with all the day's news.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT: As U.S. forces are more and more seen less on the streets of Iraq as they have hand over security control to Iraqis, more and more Iraqis themselves are the targets of the insurgents, police in particular.

Now on this occasion, it was a police station that was the target of a large truck bomb. It pulled up behind the police station in al- Doura (ph), a southern suburb of Baghdad.

The bomb was detonated, and it left behind a scene of carnage. At least nine people were killed. More than 60 were wounded, 20 of those critically. The bomb leaving a crater about two meters deep and about at least as far again wide.

Now a crowd gathered soon after. They were chanting pro-Saddam slogans, including "With our blood, with our soul, we will sacrifice for Saddam." Iraqi military told the crowds to disperse. When they did not, warning shots were.

Another tactic being employed more and more by the insurgents is assassination, and there were two more assassinations over the last 24 hours, one of a senior ministry of defense official, who was gunned down in a drive-by shooting near his home in Baghdad, and another assassination taking place in Mosul in the north, this time a senior member of the Turkmen National Front. He was gunned down in precisely the same manner, a drive-by shooting.

Michael Holmes, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: The last of that 51-member Filipino peacekeeping force left Iraq today, just about a month ahead of schedule. That's in keeping with the demands of the Filipino truck driver's kidnappers, though we're still awaiting word of the truck driver's fate.

O'BRIEN: In Eagle, Colorado, today, cell phones and news cameras in the legal spotlight. CNN's Adrian Baschuk fills us in on the latest pretrial hearing in the Kobe Bryant episode.

Hello, Adrian.

ADRIAN BASCHUK, CNN CORRESPONDENT: Miles, good afternoon.

As we speak right now, defense attorneys, prosecutors and even attorneys for the media are arguing in open court. The question, to ban or not to ban. Cameras in the courtroom, that is.

The news media is asking the judge to allow two small TV cameras in the courtroom during trial. They say that the broadcast of trials are actually encouraged by the state Supreme Court for its, quote, "educational value of the trial process for the public."

Now here's the thing. Both the prosecution and the defense have teamed up and asked the judge to ban cameras, because they say that both Kobe Bryant and his accuser would be denied a fair trial with their presence.

Now also today, the Colorado Supreme Court issued a pivotal ruling in this case. You may recall that after the last hearing a month ago, June 21 and 22, the court accidentally sent sealed transcripts of the proceedings that had to do with the accuser's sexual past to seven media outlets.

The judge stepped in, immediately issued an order and asked them to seal it. However, the news media took the case to the Colorado Supreme Court. And in today's ruling, the Supreme Court is actually keeping those proceedings under seal. The news media will not be allowed to release its contents.

(BEGIN VIDEO CLIP) CYNTHIA STONE, VICTIMS' ADVOCATE: We have asked the media not to publish this, regardless of the Supreme Court's opinion on the First Amendment case. We feel that it would be an undue invasion of privacy into this young woman's life.

(END VIDEO CLIP)

BASCHUK: Now in this ruling, however, the Supreme Court did say that the district court's decision by Ruckriegle was initially prior restraint but held constitutional because of the context of the privacy rights in this case.

However, it's unclear if this case will be affected by the SCOTUS decision, where the First Amendment trumped privacy rights. It's unclear whether or not an appeal will be forthcoming -- Miles.

O'BRIEN: Adrienne Baschuk in Eagle, Colorado, thank you very much.

Have you seen the crash yet? Check out this video. Dale Earnhardt Jr., his car going up in flames. He says, believe it or not, he'll be driving this weekend.

Ahead we'll talk with NASCAR legend Ken Shrader about what it's like to be in just that predicament.

MIGUEL MARQUEZ, CNN CORRESPONDENT: I'm Miguel Marquez, live north of Los Angeles covering the foothill fires, where the air war has begun. I'll have a live report coming right up.

(END VIDEO CLIP)

O'BRIEN: And two words from Governor Schwarzenegger have Democrats demanding an apology and the folks at "Saturday Night Live" happy he was watching. What those two words are after a break; we will pump you up!

(COMMERCIAL BREAK)

O'BRIEN: In southern California, the fires are still raging, about a dozen big blazes burning across tens of thousands of acres now.

CNN's Miguel Marquez joining us live from the foothill fire just north of Los Angeles with the latest from that -- Miguel.

MARQUEZ: If it's summer, and it's on fire, you must be in California, it seems. We are at the foothill fire, the most active part of the fire, where helicopters have been working this area of the fire for the most part of today.

The fire itself is 5,700 acres, say fire officials. It's about 25 miles right north of Los Angeles. The cause -- They do have a cause of this fire now. It's kind of an interesting one. They say that a red-tailed hawk apparently touched two fire -- two electrical lines, burst into flames, fell to the ground, and then set this fire off in the foothills. And that's why they've called it the foothill fires.

Now, evacuations have been lifted for the community of Fair Oaks in this area but two areas, as many as 1,600 residences at one point were evacuated both in Placerita and Sand Canyon.

One fire official earlier telling us a bit earlier exactly what the goal is for today.

(BEGIN VIDEO CLIP)

JIM DELMONICA, FORESTRY DEPARTMENT: As you can see where this helicopter is dropping now, we've got four or five hand crews working right along this slope. And the helicopters are assisting the hand crews to try and cool this down so that they can get a line cut through there and hopefully hold it in this area that, as you can see by the other roads here, we have access to.

If it were to -- if moves farther over, as you can see over here, in this area, there are no roads.

(END VIDEO CLIP)

MARQUEZ: So they are hoping to hold it, and they're using choppers, like this big heavy Chinook here. That's probably an 800 to 1,000 gallon bag that it's carrying below it. It's been flying in here every 10 or 15 minutes. You can see dumping that water right down on the fire and along there.

Down below there, one of the dangers here is that there are about four -- as that fire official was saying earlier, there's about four hand crews down there, about 18 to 20 people each. And they can get doused with that, and all that water can bring down rocks, logs and everything else with it. So they have to be careful.

About 1,700 firefighters total on this fire, about $1.6 million it's cost so far to fight it. And there are several other big fires everywhere from Yosemite up north all the way down to the San Diego area that are burning right now, but so far, nothing like we saw last year -- Miles.

O'BRIEN: How about the fatigue of those firefighters right now, Miguel? How are they holding up?

MARQUEZ: Well, I talked to one -- one crew member I talked to this morning, they had just come off the pine fire just north of here and now they're here.

I mean, they like it because they get the overtime, but those 10- , 15-hour days when you have to hike to the top of those hills with, you know, 50, 60 pounds on their backs, I think they get pretty darn tired after awhile.

They typically switch out every 15, 16 hours, though -- Miles.

O'BRIEN: Some very, very long days indeed. Miguel Marquez at the foothills fire. Let's go up to the weather center, Jacqui Jeras. If you look at the weather reports for that part of the world, I haven't seen any good news. I suspect you haven't either.

(WEATHER REPORT)

O'BRIEN: Jacqui Jeras thanks so much -- Kyra.

PHILLIPS: Other news across America now.

Commandments on tour. A two-ton granite monument of the Ten Commandments could be hoisted out of storage in Alabama today and put on the road. A veterans group plans to display the monument in several cities. It's been in a closet in Alabama's state judicial building since it was removed from the rotunda, as you remember, during that huge controversy last year.

No apologies. A spokesperson for California governor Arnold Schwarzenegger said he's not going to say he's sorry for a remark about Democratic lawmakers some Democrats are calling homophobic.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: If they don't have the guts to come out here in front of you and say, "I don't want to represent you. I want to represent those special interests, the unions, the trial lawyers," that want them to make millions of dollars. "I don't want to represent you." If they don't have the guts, I call him girlie men. They should go back to the table and fix the budget.

(END VIDEO CLIP)

PHILLIPS: You may the "girlie man" expression. It was lifted from an old "Saturday Night Live" skit.

Earnhardt on the mend. Dale Earnhardt Jr. could get out of the hospital today, the day after this fiery crash during a practice run. Little E suffered second-degree burns on his legs and face.

O'BRIEN: A NASCAR veteran says he knows exactly what Dale Earnhardt went through, because he's been there himself. In just a few moments, NASCAR legend Ken Shrader talks to Kyra about escaping the flames.

And a brouhaha, get it, brew-ha ha, over a beer business deal. We've got the buzz on Coors crossing the border for a merger. It will make you hopping -- interested?

And covering the party conventions. Just ahead, the politics of President Bush and Senator Kerry through the eyes of a 12-year-old journalist.

(BEGIN AUDIO CLIP)

SHERYL CROW, MUSICIAN (singing): All I want to do is have some fun. I got a feeling I'm not the only one.

(END AUDIO CLIP)

O'BRIEN: You know, there's so many Sheryl Crow songs we could use.

PHILLIPS: But that's perfect. They're having fun.

O'BRIEN: I know. I know, but she's got us a big library of tunes. And we keep playing it over and over again.

All right, Sheryl Crow -- Mr. Sheryl Crow, Lance Armstrong looking good, my friend. Here's our daily update on Lance's chances.

He's leaped ahead of his rivals in the Tour de France. Are you surprised? Mais non. After traversing some tough mountain territory, Armstrong is second overall now, the 32-year-old Texas going for his sixth straight victory in the tour, which of course, will put him in the record books.

Today is a day of rest.

PHILLIPS: This is a perfect transition, because all weekend I'm going from Lance to British Open, or I should say the Tour de France to British Open, back and forth, back and forth.

O'BRIEN: Looked like you were hitchhiking. I don't know what you were doing.

PHILLIPS: No, flipping the flippers.

O'BRIEN: Oh, the flipper.

PHILLIPS: Leads me to the next question.

O'BRIEN: Yes.

PHILLIPS: Who is Todd Hamilton? An old wives tale come true, that rookie out of nowhere is celebrating a dramatic victory in the British Open.

Todd Hamilton beat one of the best known players in golf in a four-hole playoff showdown, and of course, CNN's Patrick Snell was lucky enough to be there.

(BEGIN VIDEOTAPE)

PATRICK SNELL, CNN CORRESPONDENT (voice-over): Another major and another major shock. At the British Open, Todd Hamilton held his nerve to deny Ernie Els with a pass on the final playoff hole to claim that famous Claret Jug.

TODD HAMILTON, 2004 BRITISH OPEN CHAMPION: I felt great. I'm glad it wasn't double the length. I just got out there, told myself, "You've made dozens of these, hundred, thousands of these over career, whether it be practice or in tournaments, straight back, straight through."

ERNIE ELS, FINISHED SECOND AT BRITISH OPEN: All the credit to him, you know. I know what he must feel like right now. You know, it's a great thrill to win that Claret Jug. And you know, he deserved it.

SNELL: Hamilton refused to be overwhelmed by the pack of star names chasing him. Phil Mickelson just missed out on his second major of the year. While the Tiger Woods charge ran out of steam. It's now nine majors without a win for him.

TIGER WOLF, FINISHED TIED FOR NINTH: I felt like I played well. I just couldn't capitalize on a lot of my opportunities this week. On top of that, I made a couple of mistakes here and there, which I didn't make any high numbers, but I also didn't make enough birdies either.

PHIL MICKELSON, FINISHED IN THIRD PLACE: I felt like I've played very well, and really I thought that if I could get to the top of the lead or tied with nine to go, I really felt like the backside, I could make nine pars or shoot even par. And I just didn't see that many birdies out there, and what Todd and Ernie did is just really incredible.

SNOW (on camera): It's only Hamilton's second win of 2004, but of course they don't come any bigger than the world's oldest major.

Troon has now seen six of its last opens won by Americans. But in taking this title, Hamilton has played himself right into contention for a spot on the U.S. Ryder Cup team.

Patrick Snell, CNN, Royal Troon, Scotland.

(END VIDEOTAPE)

O'BRIEN: Well, there's word of a major deal brewing in the works. Rhonda Schaffler joining us from the New York Stock Exchange with details on that.

(STOCK REPORT)

(COMMERCIAL BREAK)

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Aired July 19, 2004 - 12:58   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
MICHAEL ISIKOFF, "NEWSWEEK": The Iranian security services by having this arrangement were acting as -- helping to facilitate the September 11 attacks.

(END VIDEO CLIP)

MILES O'BRIEN, CNN ANCHOR: 9/11 Commission stunner: connecting the dots between Iran and the al Qaeda terrorists who struck America.

ADRIAN BASCHUK, CNN CORRESPONDENT: I'm Adrian Baschuk in Eagle, Colorado, where Kobe Bryant returns to court, this time teaming up with the prosecution to get cameras banned from the trial. We'll have that story coming up.

KYRA PHILLIPS, CNN ANCHOR: Up in flames: a fiery crash for NASCAR's Dale Earnhardt Jr. A racing legend joins us to talk about what it's like inside a car on fire.

O'BRIEN: And delaying a debilitating condition, a promising treatment to beat back the onset of Alzheimer's disease.

From the CNN Center in Atlanta, I'm Miles O'Brien. Good to see you.

PHILLIPS: And I'm Kyra Philips. CNN's LIVE FROM starts right now.

Up first this hour, secret passage. It's a bombshell from the independent panel investigating September 11, word that Iranian border guards were ordered not to stamp the passports of al Qaeda members traveling through Iran from Afghanistan in late 2000 and early 2001. The commission won't release its very long-awaited final report until Thursday, but the Iranian connection first sent out in a U.S. government memo leaked over the weekend, setting of a new wave of second-guessing over the U.S. focus on Iraq.

Investigative reporter Michael Isikoff laid out the story for "Newsweek."

(BEGIN VIDEOTAPE)

ISIKOFF: Eight to 10 of the so-called "muscle hijackers," the hijackers who came in in -- starting in April, 2001 and served as the sort of backup to the pilots to -- on September 11 that allowed the hijacking to take place had gone from the Afghan training camps through Iran, and had clean passports.

In other words, when they came into the United States, they had no stamps indicating they had been to either Afghanistan or Iran, which would have been red flags for U.S. border inspectors.

There appears to have been a general policy by the Iranian security services to ensure that al Qaeda fighters coming from the Afghan training camps did not have stamps placed in their passports.

(END VIDEO CLIP)

PHILLIPS: The 9/11 report will not conclude Iran knowingly conspired on the 9/11 hijackings. With more on that and reaction from the West Wing, let's bring CNN White House correspondent Dana Bash -- Dana.

DANA BASH, CNN CORRESPONDENT: Well, Kyra, over the weekend, the acting CIA director, John McLaughlin, also confirmed that the U.S. government does believe eight out of the 19 9/11 hijackers did pass through the country of Iran before coming to the United States.

But he also said that there is no evidence, the government believes as of now, that the Iranian government actually supported. Or, more importantly, he said there's no evidence, as far as the government believes, that they actually were involved in the 9/11 plot.

Now today the president noted all of that. Nevertheless, he did say that the U.S. government is still digging into the facts, he called it. But he also noted and used the opportunity to call on Iran to stop harboring al Qaeda and to stop its nuclear program.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And I have made it clear that if the Iranians would like to have better relations with the United States, there are some things they must do.

For example, they're harboring al Qaeda leadership there, and we've asked that they be turned over to their respective countries.

Secondly, they've got a nuclear weapons program that they need to dismantle. We're working with other countries to encourage them to do so.

Thirdly, they've got to stop funding terrorist organizations such as Hezbollah that create great dangers in parts of the world.

(END VIDEO CLIP)

BASH: Now Democrats have already seized on this, for example, Senator Dick Durbin of Illinois, a member of the intelligence committee, said yesterday that if there was any connection between Iran and September 11, perhaps the administration was focused on the wrong country, wrongly focused on the country of Iraq, suggesting that, if the president and the administration was and still is saying that there were connections between the two countries, that they also should have looked at Iran.

Now the White House, for their part, says that they do certainly take Iran as a threat, but as they say about North Korea, they treat Iran and other countries with different responses. Different countries deserve different responses -- Kyra.

PHILLIPS: Dana Bash, live from the White House. We're going to talk more about all this in the next hour of LIVE FROM with foreign policy analyst Rob Sabani (ph) of Georgetown University.

MILES O'BRIEN, ANCHOR: To the Palestinian territories now, where an apparent Israeli missile strike on a militant safe house was merely a distraction from the real battles underway in Palestinian politics.

CNN's Alessio Vinci has the latest on the power struggles and potential power vacuum that is driving Palestinians, especially Gazans, to desperation.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT: Palestinian Prime Minister Ahmed Qorei, saying he's offered to resign. He still stands, and he's waiting for a written response by the chairman of the Palestinian authority, Yasser Arafat, who has already rejected twice verbally his offer to resign over the last two days.

The prime minister telling reporters at the end of a cabinet session in the West Bank city of Ramallah that the state of chaos in and violence in Gaza forced him to ask for the resignation. However, Mr. Qorei also said that the vast majority of the ministers in his own cabinet are opposing his resignation.

Mr. Qorei also appealed for calm, saying that the fighting in the streets of Gaza is not the way to resolve the issue of corruption in the Gaza Strip and the West Bank.

And addressing the crisis over there, he said that the cabinet had formed a committee with a specific task to meet with Chairman Arafat in the coming days and convey to him the cabinet's concerns over the lack of security in Gaza and the resulting violence.

AHMED QOREI, PALESTINIAN PRIME MINISTER (through translator): This is also a demand and appeal to President Yasser Arafat, who is the point of consensus for everybody not in the Gaza state, the consensus for the Gaza Strip and the West Bank.

There could be a difference with him but not over it, but about that's why we say time has come for you to activate our apparatuses on -- based on right steps. It is about time to appoint the suitable person and the suitable position.

This is an appeal that is being sent from this cabinet to President Arafat.

VINCI (voice-over): Violence erupted in Gaza after Arafat announced a series of new appointments of key security officials. Among them, his own nephew as head of national security, a move that sparked violent protests in Gaza over the weekend with militants, as well as members of Arafat's own Fattah movement attacking some of the symbols of Palestinian authority, burning to the ground a police station and attacking the headquarters of the Palestinian intelligence in Rafah with hand grenades and fire bombs, resulting in the wounding of at least ten people.

Adding to the confusion at this time, both the old and new chief of national security claim they are in charge of national security in Gaza, fueling some speculation that the situation is far from over in Gaza. There's a lot of confusion of who is in charge of those security services.

Meanwhile, there has been a large explosion in the Shatti refugee camp, also in Gaza, the house of a known Palestinian militant leader apparently the target of an Israeli targeted assassination attempt.

Sources within the Palestinian Popular Resistance, which is an umbrella organization representing a number of Palestinian militant groups, say that the leader of this group left the house shortly before the explosion took place and was unhurt. However, three people have been injured as a result of this explosion, one of them seriously.

Witnesses say they saw an Israeli drone in the sky just before the blast, speculating that this explosion may have been the result of a targeted killing by Israeli forces.

Meanwhile, the Israeli defense officials are not commenting on the incident.

(on camera) Alessio Vinci, CNN, Jerusalem.

(END VIDEOTAPE)

PHILLIPS: A truck bomb in Baghdad, drive-by assassination and farewell Filipinos. CNN's Michael Holmes is in the Iraqi capital with all the day's news.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT: As U.S. forces are more and more seen less on the streets of Iraq as they have hand over security control to Iraqis, more and more Iraqis themselves are the targets of the insurgents, police in particular.

Now on this occasion, it was a police station that was the target of a large truck bomb. It pulled up behind the police station in al- Doura (ph), a southern suburb of Baghdad.

The bomb was detonated, and it left behind a scene of carnage. At least nine people were killed. More than 60 were wounded, 20 of those critically. The bomb leaving a crater about two meters deep and about at least as far again wide.

Now a crowd gathered soon after. They were chanting pro-Saddam slogans, including "With our blood, with our soul, we will sacrifice for Saddam." Iraqi military told the crowds to disperse. When they did not, warning shots were.

Another tactic being employed more and more by the insurgents is assassination, and there were two more assassinations over the last 24 hours, one of a senior ministry of defense official, who was gunned down in a drive-by shooting near his home in Baghdad, and another assassination taking place in Mosul in the north, this time a senior member of the Turkmen National Front. He was gunned down in precisely the same manner, a drive-by shooting.

Michael Holmes, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: The last of that 51-member Filipino peacekeeping force left Iraq today, just about a month ahead of schedule. That's in keeping with the demands of the Filipino truck driver's kidnappers, though we're still awaiting word of the truck driver's fate.

O'BRIEN: In Eagle, Colorado, today, cell phones and news cameras in the legal spotlight. CNN's Adrian Baschuk fills us in on the latest pretrial hearing in the Kobe Bryant episode.

Hello, Adrian.

ADRIAN BASCHUK, CNN CORRESPONDENT: Miles, good afternoon.

As we speak right now, defense attorneys, prosecutors and even attorneys for the media are arguing in open court. The question, to ban or not to ban. Cameras in the courtroom, that is.

The news media is asking the judge to allow two small TV cameras in the courtroom during trial. They say that the broadcast of trials are actually encouraged by the state Supreme Court for its, quote, "educational value of the trial process for the public."

Now here's the thing. Both the prosecution and the defense have teamed up and asked the judge to ban cameras, because they say that both Kobe Bryant and his accuser would be denied a fair trial with their presence.

Now also today, the Colorado Supreme Court issued a pivotal ruling in this case. You may recall that after the last hearing a month ago, June 21 and 22, the court accidentally sent sealed transcripts of the proceedings that had to do with the accuser's sexual past to seven media outlets.

The judge stepped in, immediately issued an order and asked them to seal it. However, the news media took the case to the Colorado Supreme Court. And in today's ruling, the Supreme Court is actually keeping those proceedings under seal. The news media will not be allowed to release its contents.

(BEGIN VIDEO CLIP) CYNTHIA STONE, VICTIMS' ADVOCATE: We have asked the media not to publish this, regardless of the Supreme Court's opinion on the First Amendment case. We feel that it would be an undue invasion of privacy into this young woman's life.

(END VIDEO CLIP)

BASCHUK: Now in this ruling, however, the Supreme Court did say that the district court's decision by Ruckriegle was initially prior restraint but held constitutional because of the context of the privacy rights in this case.

However, it's unclear if this case will be affected by the SCOTUS decision, where the First Amendment trumped privacy rights. It's unclear whether or not an appeal will be forthcoming -- Miles.

O'BRIEN: Adrienne Baschuk in Eagle, Colorado, thank you very much.

Have you seen the crash yet? Check out this video. Dale Earnhardt Jr., his car going up in flames. He says, believe it or not, he'll be driving this weekend.

Ahead we'll talk with NASCAR legend Ken Shrader about what it's like to be in just that predicament.

MIGUEL MARQUEZ, CNN CORRESPONDENT: I'm Miguel Marquez, live north of Los Angeles covering the foothill fires, where the air war has begun. I'll have a live report coming right up.

(END VIDEO CLIP)

O'BRIEN: And two words from Governor Schwarzenegger have Democrats demanding an apology and the folks at "Saturday Night Live" happy he was watching. What those two words are after a break; we will pump you up!

(COMMERCIAL BREAK)

O'BRIEN: In southern California, the fires are still raging, about a dozen big blazes burning across tens of thousands of acres now.

CNN's Miguel Marquez joining us live from the foothill fire just north of Los Angeles with the latest from that -- Miguel.

MARQUEZ: If it's summer, and it's on fire, you must be in California, it seems. We are at the foothill fire, the most active part of the fire, where helicopters have been working this area of the fire for the most part of today.

The fire itself is 5,700 acres, say fire officials. It's about 25 miles right north of Los Angeles. The cause -- They do have a cause of this fire now. It's kind of an interesting one. They say that a red-tailed hawk apparently touched two fire -- two electrical lines, burst into flames, fell to the ground, and then set this fire off in the foothills. And that's why they've called it the foothill fires.

Now, evacuations have been lifted for the community of Fair Oaks in this area but two areas, as many as 1,600 residences at one point were evacuated both in Placerita and Sand Canyon.

One fire official earlier telling us a bit earlier exactly what the goal is for today.

(BEGIN VIDEO CLIP)

JIM DELMONICA, FORESTRY DEPARTMENT: As you can see where this helicopter is dropping now, we've got four or five hand crews working right along this slope. And the helicopters are assisting the hand crews to try and cool this down so that they can get a line cut through there and hopefully hold it in this area that, as you can see by the other roads here, we have access to.

If it were to -- if moves farther over, as you can see over here, in this area, there are no roads.

(END VIDEO CLIP)

MARQUEZ: So they are hoping to hold it, and they're using choppers, like this big heavy Chinook here. That's probably an 800 to 1,000 gallon bag that it's carrying below it. It's been flying in here every 10 or 15 minutes. You can see dumping that water right down on the fire and along there.

Down below there, one of the dangers here is that there are about four -- as that fire official was saying earlier, there's about four hand crews down there, about 18 to 20 people each. And they can get doused with that, and all that water can bring down rocks, logs and everything else with it. So they have to be careful.

About 1,700 firefighters total on this fire, about $1.6 million it's cost so far to fight it. And there are several other big fires everywhere from Yosemite up north all the way down to the San Diego area that are burning right now, but so far, nothing like we saw last year -- Miles.

O'BRIEN: How about the fatigue of those firefighters right now, Miguel? How are they holding up?

MARQUEZ: Well, I talked to one -- one crew member I talked to this morning, they had just come off the pine fire just north of here and now they're here.

I mean, they like it because they get the overtime, but those 10- , 15-hour days when you have to hike to the top of those hills with, you know, 50, 60 pounds on their backs, I think they get pretty darn tired after awhile.

They typically switch out every 15, 16 hours, though -- Miles.

O'BRIEN: Some very, very long days indeed. Miguel Marquez at the foothills fire. Let's go up to the weather center, Jacqui Jeras. If you look at the weather reports for that part of the world, I haven't seen any good news. I suspect you haven't either.

(WEATHER REPORT)

O'BRIEN: Jacqui Jeras thanks so much -- Kyra.

PHILLIPS: Other news across America now.

Commandments on tour. A two-ton granite monument of the Ten Commandments could be hoisted out of storage in Alabama today and put on the road. A veterans group plans to display the monument in several cities. It's been in a closet in Alabama's state judicial building since it was removed from the rotunda, as you remember, during that huge controversy last year.

No apologies. A spokesperson for California governor Arnold Schwarzenegger said he's not going to say he's sorry for a remark about Democratic lawmakers some Democrats are calling homophobic.

(BEGIN VIDEO CLIP)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: If they don't have the guts to come out here in front of you and say, "I don't want to represent you. I want to represent those special interests, the unions, the trial lawyers," that want them to make millions of dollars. "I don't want to represent you." If they don't have the guts, I call him girlie men. They should go back to the table and fix the budget.

(END VIDEO CLIP)

PHILLIPS: You may the "girlie man" expression. It was lifted from an old "Saturday Night Live" skit.

Earnhardt on the mend. Dale Earnhardt Jr. could get out of the hospital today, the day after this fiery crash during a practice run. Little E suffered second-degree burns on his legs and face.

O'BRIEN: A NASCAR veteran says he knows exactly what Dale Earnhardt went through, because he's been there himself. In just a few moments, NASCAR legend Ken Shrader talks to Kyra about escaping the flames.

And a brouhaha, get it, brew-ha ha, over a beer business deal. We've got the buzz on Coors crossing the border for a merger. It will make you hopping -- interested?

And covering the party conventions. Just ahead, the politics of President Bush and Senator Kerry through the eyes of a 12-year-old journalist.

(BEGIN AUDIO CLIP)

SHERYL CROW, MUSICIAN (singing): All I want to do is have some fun. I got a feeling I'm not the only one.

(END AUDIO CLIP)

O'BRIEN: You know, there's so many Sheryl Crow songs we could use.

PHILLIPS: But that's perfect. They're having fun.

O'BRIEN: I know. I know, but she's got us a big library of tunes. And we keep playing it over and over again.

All right, Sheryl Crow -- Mr. Sheryl Crow, Lance Armstrong looking good, my friend. Here's our daily update on Lance's chances.

He's leaped ahead of his rivals in the Tour de France. Are you surprised? Mais non. After traversing some tough mountain territory, Armstrong is second overall now, the 32-year-old Texas going for his sixth straight victory in the tour, which of course, will put him in the record books.

Today is a day of rest.

PHILLIPS: This is a perfect transition, because all weekend I'm going from Lance to British Open, or I should say the Tour de France to British Open, back and forth, back and forth.

O'BRIEN: Looked like you were hitchhiking. I don't know what you were doing.

PHILLIPS: No, flipping the flippers.

O'BRIEN: Oh, the flipper.

PHILLIPS: Leads me to the next question.

O'BRIEN: Yes.

PHILLIPS: Who is Todd Hamilton? An old wives tale come true, that rookie out of nowhere is celebrating a dramatic victory in the British Open.

Todd Hamilton beat one of the best known players in golf in a four-hole playoff showdown, and of course, CNN's Patrick Snell was lucky enough to be there.

(BEGIN VIDEOTAPE)

PATRICK SNELL, CNN CORRESPONDENT (voice-over): Another major and another major shock. At the British Open, Todd Hamilton held his nerve to deny Ernie Els with a pass on the final playoff hole to claim that famous Claret Jug.

TODD HAMILTON, 2004 BRITISH OPEN CHAMPION: I felt great. I'm glad it wasn't double the length. I just got out there, told myself, "You've made dozens of these, hundred, thousands of these over career, whether it be practice or in tournaments, straight back, straight through."

ERNIE ELS, FINISHED SECOND AT BRITISH OPEN: All the credit to him, you know. I know what he must feel like right now. You know, it's a great thrill to win that Claret Jug. And you know, he deserved it.

SNELL: Hamilton refused to be overwhelmed by the pack of star names chasing him. Phil Mickelson just missed out on his second major of the year. While the Tiger Woods charge ran out of steam. It's now nine majors without a win for him.

TIGER WOLF, FINISHED TIED FOR NINTH: I felt like I played well. I just couldn't capitalize on a lot of my opportunities this week. On top of that, I made a couple of mistakes here and there, which I didn't make any high numbers, but I also didn't make enough birdies either.

PHIL MICKELSON, FINISHED IN THIRD PLACE: I felt like I've played very well, and really I thought that if I could get to the top of the lead or tied with nine to go, I really felt like the backside, I could make nine pars or shoot even par. And I just didn't see that many birdies out there, and what Todd and Ernie did is just really incredible.

SNOW (on camera): It's only Hamilton's second win of 2004, but of course they don't come any bigger than the world's oldest major.

Troon has now seen six of its last opens won by Americans. But in taking this title, Hamilton has played himself right into contention for a spot on the U.S. Ryder Cup team.

Patrick Snell, CNN, Royal Troon, Scotland.

(END VIDEOTAPE)

O'BRIEN: Well, there's word of a major deal brewing in the works. Rhonda Schaffler joining us from the New York Stock Exchange with details on that.

(STOCK REPORT)

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