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Scott Peterson's Love Life Examined; Baghdad Stock Market Open For Business; Bush Holds Media Availability with Romanian PM
Aired July 21, 2004 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: In the news right now, an obscure militant group in Iraq says it is holding six foreign truck drivers. An Arabic-language network showed masked gunmen with six men reportedly from Kenya, India and Egypt. The group calls itself Black Flags and threatens to kill hostages unless the companies that employ them leave Iraq.
An American family is dealing with the shock of a grisly find in Saudi Arabia. A Saudi official says the head of Paul Johnson was found in a freezer after a raid on a home. His brother Wayne Johnson says the family has been pressuring the Saudis for information on what happened to him. Johnson was kidnapped and beheaded last month.
Two locations of a company making bulletproof vests were searched by federal agents with search warrants today. A Justice Department officials calls the search of Galls Incorporated a joint federal operation involving a number of law enforcement agencies.
KYRA PHILLIPS, CNN ANCHOR: Security, terrorism and the Olympics. Greece denies agreeing to allow armed troops from other countries to provide security for athletes at the Summer Olympics next month. But it had been reported that Greece would bend to international pressure and let U.S. special forces and armed agents from Israel and Britain work the Games. That was on top of the already tight security Greece is putting into place.
Earlier on LIVE FROM, CNN military intelligence analyst Ken Robinson and former Delta Force member Eric Haney talked with me about security at the Games.
(BEGIN VIDEOTAPE)
ERIC HANEY, FORMER DELTA FORCE MEMBER: These are reactive forces. They don't prevent a terrorist attack other than the fact that if the information is disseminated very quietly to would-be attackers that there is effective and potential counterattack capability, it works to deter. But you can't defend against everything.
PHILLIPS: Talking about defending against everything, Ken, we can't forget 1972 and Black September when the Israel athletes -- and, Eric, I know you remember that, too.
So, Ken, let's talk about why this is so important that there isn't a repeat, considering the threat has grown even bigger since then. KEN ROBINSON, CNN NATIONAL SECURITY ANALYST: Well, many foreign terrorist organizations in the world want to use this event as a way to advertise their story. So the places where the Olympic events are held are going to be armed camps.
And so potentially they may move to a softer target, which would be hotels, as well as the Queen Mary is going to be parked near Athens and is going to be used as a floating hotel. So there's going to be plenty of places where Westerners congregate that could potentially be used as a means of attack, as what happened in Mombassa, Kenya, in September of 2002 with the al Qaeda attack on that hotel.
PHILLIPS: The information is slowly coming out via wire services, other newspaper reporters. Eric, I'm going to get you to respond to this, this one report coming from the AP that athletes will be under the exclusive protection of Greek forces, but nations fearing terrorist attacks during the Games will be allowed special security details.
All right, rules of engagement. If indeed the Greeks are in charge of security...
HANEY: Which they are.
PHILLIPS: OK, which they are.
So let's say something, there's a fear about a bomb near American athletes. Is that when American special forces are allowed to step in and respond? How do you organize rules of engagement when you have got so many different forces, but yet the Greeks are supposed to be in charge of all of it?
HANEY: They are indeed in charge of it.
(END VIDEOTAPE)
O'BRIEN: Now to bolstering security at home, this time against a possible bioterror attack. Here in Washington today, President Bush signed a $5.6 billion Project Bioshield Act. The money will go for vaccines and drugs for diseases like anthrax, smallpox and the plague. The government hops that by promising it will stockpile these drugs, companies will have an incentive to develop more of them.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We know that the terrorists seek an even deadlier technology. And if they acquire chemical, biological or nuclear weapons, we have no doubt they will use them to cause even greater harm. The bill I'm about to sign is an important element in our response to that threat.
By authorizing unprecedented funding and providing new capabilities, Project Bioshield will help America purchase, develop and deploy cutting-edge defense against catastrophic attack.
(END VIDEO CLIP) PHILLIPS: Other news across the country now. Millions of Americans may see further tax relief. Congressional negotiators have agreed to extend tax cuts for wage earners, parents, and marriage couples by two years. The lawmakers say the White House still wants the cuts extended for five yeas.
The search widens for a pregnant woman missing in Utah. Volunteers are going down to door in downtown Salt Lake City today in search of Lori Hacking. The 27-year-old apparently vanished Monday while jogging in a park. Hacking's family plans to hold a news conference later today. Stay with CNN for the latest on that story.
O'BRIEN: Scott Peterson's love life has again become a focus in his high-profile murder trial.
Joining us from Redwood City, California, CNN's Ted Rowlands, who has been watching the trial for us.
And lots of talk about his character right, Ted?
TED ROWLANDS, CNN CORRESPONDENT: Yes.
And what you're specifically talking about, Miles, is a mailbox that Peterson rented at Mail Boxes Etc. On December 23 of 2002, the day before his wife was reported missing, the only letter in that mailbox that police ever monitored was from his love interest Amber Frey. All day, up until the end of today's testimony, has been focused on police detectives and different witness from the Modesto Police Department.
Both sides seem to be scoring points at different times. This morning, Mark Geragos, while he was cross-examining Detective Mike Hermosa, was able to establish that at one point a woman stole some mail from Peterson's warehouse. It turned out to be checks of Laci and Scott Peterson. And she went out and used them. She was later brought in for questioning by police and she told them that she was a meth addict around the time of December 24 and really didn't remember what she was doing.
And that was the extent of the police investigation. And Geragos seemed to use that information to tell the jury once again that the defense's attitude here is that there was a rush to judgment and the police on this case did not go into in-depth with anybody else except for Scott Peterson. Other testimony from police witnesses that seemed to work in the prosecution favor came when a police detective established that the nursery in Scott and Laci Peterson's home was used as sort of a makeshift storage area in the month of February, when the second search warrant was served on that house.
And Scott Peterson had said publicly that he never opened the door of the nursery because of the emotion surrounding it because of his unborn child. Peterson said that he never went into that room, when this detective testified that indeed somebody was in that room, storing different items.
Late today, right before the break, we got our first civilian witness in some time, a plant expert talking about some grass that was found in Scott Peterson's boat. The jury right now is enjoying the lunch recess. This same witness is expected to be on the stand when things resume at 1:30 Pacific time -- Miles.
O'BRIEN: Ted Rowlands in Redwood City, California, thanks -- Kyra.
PHILLIPS: A late-night hankering for a cold one? Four thirsty inmates and a strategically placed Bible, it all adds up to the great jail break beer run just ahead on LIVE FROM.
And the bulls and bears are on the run in Baghdad, a new sign of normalcy for Iraq.
And Jenna's gesture. The president's daughter has tongues a'wagging. She's in the political crossfire after a break.
(COMMERCIAL BREAK)
PHILLIPS: Despite the violence, they're bullish in Baghdad, investors, that is. Iraq's stock exchange is finally up and running. And not even the sound of bombs exploding nearby is scaring traders away.
CNN's Michael Holmes has this special report.
(BEGIN VIDEOTAPE)
MICHAEL HOLMES, CNN CORRESPONDENT (voice-over): It's not Wall Street and the opening bell could easily be a closing boom. But it is a start. Closed for 16 months because of the war and the chaos that's followed, the Iraqi Stock Exchange is back in business, for now tucked away in an anonymous hotel function room.
This is the fifth session after a U.S.-backed reorganization of the exchange and all is well. Last Sunday was a little noisier.
TALIB AL TABATABAIE, CHAIRMAN, IRAQI STOCK EXCHANGE: We were selling and buying, and around us, there was fighting and bombs and explosions. And nobody cared. Nobody gave it a second thought.
HOLMES (on camera): Say the words Iraqi Stock Exchange and the next word out of a lot of mouths may well be, sell. But let's remember this. Iraq was before the bombs and the bullets and has the potential to again become a very, very wealthy country.
AL TABATABAIE: Iraq is not a newcomer to wealth. Iraq is one of the wealthiest countries in the world. It used to be.
HOLMES (voice-over): The market opens just twice a week for two hours, and with only 27 companies trading so far, mostly banks, utilities, and a chemical company. But, by the end of the year, Mr. Talib hopes to have nearly 200 companies listed and be trading six days a week in brand new headquarters. He says the exchange has to succeed for Iraq's sake.
AL TABATABAIE: Very important, essential. Is it vital.
HOLMES: Back in the '90s, when the exchange was first launched, there were ordinary investors, plenty of them. But the big-timers were members of Saddam's regime, many of them now either in dead or in jail and, Mr. Talib says, all of them having seen their shares confiscated. Other ordinary investors, however, will have their old shares recognized on the new boards.
In the old days, there were price controls, too, limiting fluctuations to 5 percent. No more. The second trading session saw the index rise 20 percent. At session five, it's clearly a bull market in Baghdad.
Michael Holmes, CNN, Baghdad.
(END VIDEOTAPE)
O'BRIEN: The Democratic National Convention less than a week away, live pictures there as you see the FleetCenter in Boston. That 9/11 report comes out tomorrow. You know about that. And Clinton's former national security adviser is under investigation. We know about that now.
Joining me now to talk about all things political as we count down to the November elections, Paul Begala and Tucker Carlson. The bus, the FleetCenter there, they have made it to Boston.
Welcome, gentlemen, to the city there. Have you had some good chowder yet? Have you had good chowder or anything like that?
(CROSSTALK)
TUCKER CARLSON, CO-HOST, "CROSSFIRE": We've had a lot of chowder.
PAUL BEGALA, CO-HOST, "CROSSFIRE": Some chowder and lobster.
CARLSON: Famous Boston grilled cheese, yes, we've had a lot of it.
O'BRIEN: All right, good. Let's talk, first of all, about Sandy Berger.
Tucker, he says it was an honest mistake. Is that possible, given all the things that it is alleged happened there at the National Archives?
CARLSON: Sure. Of course, it's possible. It doesn't seem probable, however.
Sandy Berger is a smart, capable, very sophisticated person who has been around classified intelligence for many years. He was national security adviser. And so he knows the rules. And they are strictly enforced in Washington. This is not so mildly classified. Some of this material was so classified, its classification is classified. So it's a very, very big to mishandle this information, much less lose it, as he apparently did. His lawyer admits that he took some of this information out of the room in his clothing. He did it twice and he did it with the same document apparently.
So maybe it was all a mistake. It's awfully hard to believe. And, in any case, it's not a joking matter. So, for former President Clinton to say he was laughing about it, laughing about this criminal investigation, it's kind of hard to believe, actually.
O'BRIEN: All right.
Mr. Begala, what do you think, honest mistake? And perhaps more important to what's at hand in the next few days, what's the political impact for Kerry?
BEGALA: Well, I don't think there's any political impact for Kerry. I think there's a potential impact for the Bush administration.
Sandy's conduct has been under investigation for 10 months, 10 months, Miles. Now, a prosecutor's job is to speak through an indictment. If he broke the law, they ought to indict his butt and put him in jail. But you know what? They didn't. You know why? Because he didn't. But now what they're doing on the eve of a 9/11 Commission report that is likely to reveal or repeat, rather, that Sandy Berger warned the Bush administration about the threat from al Qaeda and that his warnings fell on deaf ears -- before that report comes out, there is a smear job on Sandy Berger.
I think the timing is obvious. It's extraordinary. And I think that the Bush-Ashcroft Justice Department is trying to become more like the Nixon-Mitchell Justice Department and doing anything they can to smear their political opponents. And I think it's reprehensible.
(CROSSTALK)
CARLSON: That is just a disgusting line of attack.
O'BRIEN: It's interesting how quickly the rhetoric got right into Watergate. Third-rate burglary was tossed around on Capitol Hill.
Tucker, could there be a backlash in all this, as Paul suggests?
CARLSON: Well, look, nobody denies that the former national security adviser did something wrong. He did. There's a criminal investigation of this. And to immediately follow the old political axiom, never defend, always attack and go after unseen forces, this conspiracy, another right-wing conspiracy, and we've heard this before. It's tiresome.
Look, I'm not saying Sandy Berger intentionally committed a crime. I'm merely saying that something significant and wrong happened. He admits as much. And to write it all off as part of some conspiracy is evidence of deep unseriousness on the point of his allies. These are classified -- this is national security information, classified documents. To lose them, come on. (CROSSTALK)
BEGALA: What I'm saying is, put up or shut up.
A prosecutor who leaks to the press is a prosecutor who doesn't have a case. And for John Ashcroft and George W. Bush to allow this to leak right before the report comes out, it's obviously political. Come on, Miles. They've had it for 10 months. They've had this information. Why are they only telling CNN, "The New York Times" and AP about this now? Why?
There's no other plausible explanation. It's obviously political.
(CROSSTALK)
O'BRIEN: Let's talk a little bit about Boston right now. We've been talking a lot today about the hyper security there, the fact that there's kind of this cage for people in which to protest.
Tucker, why do they need to cage up the First Amendment? It's one thing -- we all know post 9/11, we need security. But to actually have a cage over so they can't lob anything out of there seems a little excessive.
CARLSON: Well, it is excessive. And whenever you allow the security people, some of whom -- a few of whom are good-intentioned, to have full control over an event -- and it happens in Washington. I see it all the time as someone who lives there -- you are going to have authoritarian measures that don't into account the needs of ordinary people.
That's where you get Secret Service agents telling you to shut up and get out of the way, as if they're God. And that's exactly what is going on here, coupled with this massive construction project that you, Miles O'Brien, and I and Paul Begala are all paying for, the Big Dig, which is not yet done. It's very, very difficult to get around the city. It took us like 40 minutes to get from our hotel over to where we are now. It's only a couple of miles. So I think it is going to get much worse. I'm on the ACLU's side on this, by the way.
O'BRIEN: All right.
And a final thought here. The favorite picture of the day, of course, Jenna Bush, let's put it on the screen there, if we can.
Paul Begala, you've got to love Jenna Bush sticking out your tongue. If you're a Democratic operative, you are going to make some use of this campaign surrogate on the other side, right?
BEGALA: No. No. She's an utterly charming young woman.
I think it's just terrific that she's willing to give her time and go help her daddy and his campaign. He needs a lot of help. Maybe if she were on the ballot, her father would be doing better. But I just think she's terrific. I think the president ought to be really proud of his kids. They, from all outward appearances, are great girls.
And I love that she has got that kind of sense of humor and then lightness. There was a time, actually years ago, when George W. Bush was my friend. And he actually had a sense of humor. It's in a secure and undisclosed location now. He's all dark and gloomy these days, I guess anticipating his defeat in a few months.
But I love seeing that kid out there. And I just think she's terrific. She's just a very charming girl.
O'BRIEN: Tucker?
CARLSON: It is a cute picture. Kind of hard to spin it any other way. Yes, it is charming. It's appealing when people stick out their tongue at you. I like it.
(LAUGHTER)
O'BRIEN: All right, guys. Give it to us. Give it to us. Come on, quickly, stick out the tongues. Come on. There you go. All right.
(LAUGHTER)
(CROSSTALK)
BEGALA: Well, you missed it, Miles. I already...
CARLSON: Thank you.
O'BRIEN: Begala and Carlson, thank you very much.
CARLSON: Thanks, Miles.
BEGALA: Thanks, Miles.
O'BRIEN: And welcome to Boston. We look forward to hearing from you while you're there.
Make sure to stick around for a full edition of "CROSSFIRE." That's live from Boston, of course, today 4:30 Eastern time. And, of course, watch the Democratic National Convention on CNN. Our special coverage begins Monday 7:00 p.m. Eastern time -- Kyra.
PHILLIPS: Well, Miles, I think these guys might have been sticking their tongues out. Some Tennessee inmates break out of jail only to return with several six-packs. The story of the ultimate beer run ahead on LIVE FROM.
And she's not making a beer run, but pop star Britney Spears may soon be making some late-night diaper runs. Find out why after a break.
(COMMERCIAL BREAK)
PHILLIPS: President Bush at the Oval Office with the president of Romania taking questions from reporters. Let's listen.
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The prime minister will call somebody from the Romanian press. And then we'll do that one more time.
Mr. Prime Minister, welcome.
We've just had a very good visit. It's the kind of visit that friends would have. We talked about our relationship. I complimented Romania and the prime minister's understanding that we need to work together to fight terror.
We talked about the need to continue to work together to spread freedom and, therefore, peace in troubled parts of the world. I want to thank him very much for his understanding and his vision.
We talked about economic ties. He asked if it would be possible to spread the word that Romania is a good place to invest, and I told him that, because the country makes the right decisions, that American companies will take a look at Romania. Trade is up, which is good for Romanian people and for the American people. There's commerce going back and forth, which is a positive development.
I congratulated the prime minister on Romania's role at the United Nations. They handled the presidency very well, and we appreciate that very much.
So it's been a very good visit.
And I'm glad you're back, and I look forward to further discussions with you.
ADRIAN NASTASE, ROMANIAN PRIME MINISTER: Thank you very much, Mr. President.
It's good to be back. Mr. President, thank you for your hospitality.
It is, by the way, the first time that I am here representing an ally of the United States. And I am very proud to come here to confirm to the president our continued support for fighting together terrorists in the world, and also our support for the vision of President Bush not only on general issues, but very specifically on a very complex process of changes in Iraq.
I had the honor to chair the Security Council during the (INAUDIBLE) in New York. And I briefed the president with major decisions, prospects, possibilities which I've now offered, for a wise political decision concerning Iraq. Reconstruction...
(END VIDEOTAPE)
PHILLIPS: OK, we are going to take it right back. The tape had froze there for a second. We'll take you back to the president meeting with the president of Romania.
(BEGIN VIDEOTAPE)
NASTASE: Well, I briefed the president also on regional developments. I briefed the president with some of the developments on the continuous reforms that we are making in Romania, but also, I wanted to show him that we are interested in opening more transparent procedures and better integrity standards for civil servants and politicians.
I think this is part of the end of the transition in a country which suffered a lot, but where there is a huge willingness to understand what can make us speed up the process of modernization. And we count very much on President Bush and on his colleagues and also on the American businessmen.
It was also very important to discuss about what happens now in areas like the Black Sea, the Balkans. And I offered the president a five-star location for military bases. And there will be a decision on that.
Mr. President, may I say also that now, for us, being here, it's a great privilege, a great honor. We remember with great pleasure your visit to Bucharest and the rainbow speech and the gathering of more than 200,000 people.
Thank you very much again.
BUSH: Thank you, Mr. Prime Minister.
QUESTION: Thank you, Mr. President.
President Clinton suggested that perhaps politics was behind the disclosure of the Sandy Berger investigation. Do you have anything to say about that?
And also what did you learn about this probe?
BUSH: Look, I'm not going to comment on this matter. This is a serious matter. And it will be fully investigated by the Justice Department.
QUESTION: (OFF-MIKE)
BUSH: I'm not going to comment on it. It's a very serious matter that will be fully investigated by the Justice Department.
QUESTION: Mr. President, you said something about improving of economic relations between Romania and the U.S. Can you be more specific on that issue, please?
BUSH: Relations improve as market conditions improve inside Romania. In other words, American businesses look for places to invest capital where they can get a reasonable rate of return. American businesses like environments where there's transparency and strong anti-corruption rules, where the workforce is well-educated and hardworking.
And the prime minister and I talked about those ingredients. He said he's had some good visits with business leaders here in America. But those are decisions in our country that are made a part from government.
Each individual business will make that decision, their investment decisions in Romania apart from the offices of government. And that's what the prime minister understands. And, as he said, he had some good visits today. I'm sure he'll brief you on those visits later on.
QUESTION: Your advisers were meeting today with the chairman of the 9/11 commission. In light of what you know now, do you think the attacks were preventable? And, also, do you plan to meet personally with the commissioners to discuss their findings and recommendations?
BUSH: First of all, I haven't talked to my advisers who have met with the commission yet.
QUESTION: OK.
BUSH: I will later on.
Secondly: I am going to meet with, as I understand it, with the chairman and vice chairman of the commission. So I haven't had a chance to fully see -- read that which they have developed. I look forward to it. I've always said this is an important commission. and the main reason why is because a president and a Congress must have the best possible intelligence to make good decisions about how to protect America and our friends and allies.
I mean, we've spent a lot of time today talking about counterterrorism or counterproliferation. And the best way to succeed in those efforts is to share intelligence. And, therefore, we need to have good intelligence.
The main recommendations, as I understand it, from the 9/11 commission, will be as how best to structure the intelligence agencies.
Again, I haven't seen the report. I hope they talk about more human intelligence, because human intelligence is one of the most effective ways for us to gather intelligence in the first place. I hope they talk about, and I suspect they will, about using modern technologies to better listen and see events taking place so that we can protect ourselves. And then, of course, there needs to be a full discussion about how best to coordinate the different intelligence- gathering services here in the country.
Let me say one other thing about the 9/11. I told the commissioners, right here in the Oval Office, that had we had any inkling whatsoever that terrorists were about to attack our country, we would have moved heaven and earth to protect America. And I'm confident President Clinton would have done the same thing. Any president would. So, anyway, I'm looking forward to the report. I'm glad. They've done a lot of good work, and it's going to be very useful for the country to listen to what they have to say.
QUESTION: Question for President Bush. In both the United States and Romania you have elections this autumn. There might be four possibilities. Either you win and Mr. Nastase wins. Either you both lose. Either one of you is winning, the other one is losing.
BUSH: Right.
QUESTION: Sir, which one of these four possibilities represents the biggest disadvantage for Romania?
(LAUGHTER)
BUSH: Well, let me answer you this way. I am going to win. And the prime minister told me he is going to win. And therefore, the other three possibilities you've just outlined are not going to happen.
The interesting thing is is that here we are talking about elections in Romania. That's what I was thinking during this discussion, that a person standing for election in Romania and the United States president are now talking about what it means to campaign, a conversation which would not have been taking place 20 years ago.
You know, I'll never forget my trip to Bucharest at the rainbow speech. It was one of the most moving experiences of my presidency. And the reason why was that the rainbow itself that appeared in the midst of a rain storm, in front of 200,000-plus people ended right behind -- from my vision, ended right behind the place where the tyrant Ceausescu gave his last speech.
It was a very powerful message. It moved me deeply during the moment. And it still moves me to think that there was a powerful message being delivered by nature, to the point where I remember turning back to the people of Romania and said, "God is smiling on Bucharest." And I meant that.
And part of my beliefs, Mr. Prime Minister, is that one of the great universal values of the world is that men and women deserve to be free. And here we are talking about an election, voted on in your country and mine by free people.
Thank you for coming.
QUESTION: (OFF-MIKE)
BUSH: Still thinking about it.
QUESTION: (OFF-MIKE)
BUSH: I'm think about it, right.
I heard you passed the challenge -- no, I got the word from the agents...
PHILLIPS: That's the president of the United States not meeting long ago with the prime minister of Romania, talking about their campaign together. But also the president there making a couple of comments about the investigation into Sandy Berger and the taking of documents from the National Archive.
Straight ahead, "JUDY WOODRUFF'S INSIDE POLITICS." We'll see you tomorrow.
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Aired July 21, 2004 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: In the news right now, an obscure militant group in Iraq says it is holding six foreign truck drivers. An Arabic-language network showed masked gunmen with six men reportedly from Kenya, India and Egypt. The group calls itself Black Flags and threatens to kill hostages unless the companies that employ them leave Iraq.
An American family is dealing with the shock of a grisly find in Saudi Arabia. A Saudi official says the head of Paul Johnson was found in a freezer after a raid on a home. His brother Wayne Johnson says the family has been pressuring the Saudis for information on what happened to him. Johnson was kidnapped and beheaded last month.
Two locations of a company making bulletproof vests were searched by federal agents with search warrants today. A Justice Department officials calls the search of Galls Incorporated a joint federal operation involving a number of law enforcement agencies.
KYRA PHILLIPS, CNN ANCHOR: Security, terrorism and the Olympics. Greece denies agreeing to allow armed troops from other countries to provide security for athletes at the Summer Olympics next month. But it had been reported that Greece would bend to international pressure and let U.S. special forces and armed agents from Israel and Britain work the Games. That was on top of the already tight security Greece is putting into place.
Earlier on LIVE FROM, CNN military intelligence analyst Ken Robinson and former Delta Force member Eric Haney talked with me about security at the Games.
(BEGIN VIDEOTAPE)
ERIC HANEY, FORMER DELTA FORCE MEMBER: These are reactive forces. They don't prevent a terrorist attack other than the fact that if the information is disseminated very quietly to would-be attackers that there is effective and potential counterattack capability, it works to deter. But you can't defend against everything.
PHILLIPS: Talking about defending against everything, Ken, we can't forget 1972 and Black September when the Israel athletes -- and, Eric, I know you remember that, too.
So, Ken, let's talk about why this is so important that there isn't a repeat, considering the threat has grown even bigger since then. KEN ROBINSON, CNN NATIONAL SECURITY ANALYST: Well, many foreign terrorist organizations in the world want to use this event as a way to advertise their story. So the places where the Olympic events are held are going to be armed camps.
And so potentially they may move to a softer target, which would be hotels, as well as the Queen Mary is going to be parked near Athens and is going to be used as a floating hotel. So there's going to be plenty of places where Westerners congregate that could potentially be used as a means of attack, as what happened in Mombassa, Kenya, in September of 2002 with the al Qaeda attack on that hotel.
PHILLIPS: The information is slowly coming out via wire services, other newspaper reporters. Eric, I'm going to get you to respond to this, this one report coming from the AP that athletes will be under the exclusive protection of Greek forces, but nations fearing terrorist attacks during the Games will be allowed special security details.
All right, rules of engagement. If indeed the Greeks are in charge of security...
HANEY: Which they are.
PHILLIPS: OK, which they are.
So let's say something, there's a fear about a bomb near American athletes. Is that when American special forces are allowed to step in and respond? How do you organize rules of engagement when you have got so many different forces, but yet the Greeks are supposed to be in charge of all of it?
HANEY: They are indeed in charge of it.
(END VIDEOTAPE)
O'BRIEN: Now to bolstering security at home, this time against a possible bioterror attack. Here in Washington today, President Bush signed a $5.6 billion Project Bioshield Act. The money will go for vaccines and drugs for diseases like anthrax, smallpox and the plague. The government hops that by promising it will stockpile these drugs, companies will have an incentive to develop more of them.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We know that the terrorists seek an even deadlier technology. And if they acquire chemical, biological or nuclear weapons, we have no doubt they will use them to cause even greater harm. The bill I'm about to sign is an important element in our response to that threat.
By authorizing unprecedented funding and providing new capabilities, Project Bioshield will help America purchase, develop and deploy cutting-edge defense against catastrophic attack.
(END VIDEO CLIP) PHILLIPS: Other news across the country now. Millions of Americans may see further tax relief. Congressional negotiators have agreed to extend tax cuts for wage earners, parents, and marriage couples by two years. The lawmakers say the White House still wants the cuts extended for five yeas.
The search widens for a pregnant woman missing in Utah. Volunteers are going down to door in downtown Salt Lake City today in search of Lori Hacking. The 27-year-old apparently vanished Monday while jogging in a park. Hacking's family plans to hold a news conference later today. Stay with CNN for the latest on that story.
O'BRIEN: Scott Peterson's love life has again become a focus in his high-profile murder trial.
Joining us from Redwood City, California, CNN's Ted Rowlands, who has been watching the trial for us.
And lots of talk about his character right, Ted?
TED ROWLANDS, CNN CORRESPONDENT: Yes.
And what you're specifically talking about, Miles, is a mailbox that Peterson rented at Mail Boxes Etc. On December 23 of 2002, the day before his wife was reported missing, the only letter in that mailbox that police ever monitored was from his love interest Amber Frey. All day, up until the end of today's testimony, has been focused on police detectives and different witness from the Modesto Police Department.
Both sides seem to be scoring points at different times. This morning, Mark Geragos, while he was cross-examining Detective Mike Hermosa, was able to establish that at one point a woman stole some mail from Peterson's warehouse. It turned out to be checks of Laci and Scott Peterson. And she went out and used them. She was later brought in for questioning by police and she told them that she was a meth addict around the time of December 24 and really didn't remember what she was doing.
And that was the extent of the police investigation. And Geragos seemed to use that information to tell the jury once again that the defense's attitude here is that there was a rush to judgment and the police on this case did not go into in-depth with anybody else except for Scott Peterson. Other testimony from police witnesses that seemed to work in the prosecution favor came when a police detective established that the nursery in Scott and Laci Peterson's home was used as sort of a makeshift storage area in the month of February, when the second search warrant was served on that house.
And Scott Peterson had said publicly that he never opened the door of the nursery because of the emotion surrounding it because of his unborn child. Peterson said that he never went into that room, when this detective testified that indeed somebody was in that room, storing different items.
Late today, right before the break, we got our first civilian witness in some time, a plant expert talking about some grass that was found in Scott Peterson's boat. The jury right now is enjoying the lunch recess. This same witness is expected to be on the stand when things resume at 1:30 Pacific time -- Miles.
O'BRIEN: Ted Rowlands in Redwood City, California, thanks -- Kyra.
PHILLIPS: A late-night hankering for a cold one? Four thirsty inmates and a strategically placed Bible, it all adds up to the great jail break beer run just ahead on LIVE FROM.
And the bulls and bears are on the run in Baghdad, a new sign of normalcy for Iraq.
And Jenna's gesture. The president's daughter has tongues a'wagging. She's in the political crossfire after a break.
(COMMERCIAL BREAK)
PHILLIPS: Despite the violence, they're bullish in Baghdad, investors, that is. Iraq's stock exchange is finally up and running. And not even the sound of bombs exploding nearby is scaring traders away.
CNN's Michael Holmes has this special report.
(BEGIN VIDEOTAPE)
MICHAEL HOLMES, CNN CORRESPONDENT (voice-over): It's not Wall Street and the opening bell could easily be a closing boom. But it is a start. Closed for 16 months because of the war and the chaos that's followed, the Iraqi Stock Exchange is back in business, for now tucked away in an anonymous hotel function room.
This is the fifth session after a U.S.-backed reorganization of the exchange and all is well. Last Sunday was a little noisier.
TALIB AL TABATABAIE, CHAIRMAN, IRAQI STOCK EXCHANGE: We were selling and buying, and around us, there was fighting and bombs and explosions. And nobody cared. Nobody gave it a second thought.
HOLMES (on camera): Say the words Iraqi Stock Exchange and the next word out of a lot of mouths may well be, sell. But let's remember this. Iraq was before the bombs and the bullets and has the potential to again become a very, very wealthy country.
AL TABATABAIE: Iraq is not a newcomer to wealth. Iraq is one of the wealthiest countries in the world. It used to be.
HOLMES (voice-over): The market opens just twice a week for two hours, and with only 27 companies trading so far, mostly banks, utilities, and a chemical company. But, by the end of the year, Mr. Talib hopes to have nearly 200 companies listed and be trading six days a week in brand new headquarters. He says the exchange has to succeed for Iraq's sake.
AL TABATABAIE: Very important, essential. Is it vital.
HOLMES: Back in the '90s, when the exchange was first launched, there were ordinary investors, plenty of them. But the big-timers were members of Saddam's regime, many of them now either in dead or in jail and, Mr. Talib says, all of them having seen their shares confiscated. Other ordinary investors, however, will have their old shares recognized on the new boards.
In the old days, there were price controls, too, limiting fluctuations to 5 percent. No more. The second trading session saw the index rise 20 percent. At session five, it's clearly a bull market in Baghdad.
Michael Holmes, CNN, Baghdad.
(END VIDEOTAPE)
O'BRIEN: The Democratic National Convention less than a week away, live pictures there as you see the FleetCenter in Boston. That 9/11 report comes out tomorrow. You know about that. And Clinton's former national security adviser is under investigation. We know about that now.
Joining me now to talk about all things political as we count down to the November elections, Paul Begala and Tucker Carlson. The bus, the FleetCenter there, they have made it to Boston.
Welcome, gentlemen, to the city there. Have you had some good chowder yet? Have you had good chowder or anything like that?
(CROSSTALK)
TUCKER CARLSON, CO-HOST, "CROSSFIRE": We've had a lot of chowder.
PAUL BEGALA, CO-HOST, "CROSSFIRE": Some chowder and lobster.
CARLSON: Famous Boston grilled cheese, yes, we've had a lot of it.
O'BRIEN: All right, good. Let's talk, first of all, about Sandy Berger.
Tucker, he says it was an honest mistake. Is that possible, given all the things that it is alleged happened there at the National Archives?
CARLSON: Sure. Of course, it's possible. It doesn't seem probable, however.
Sandy Berger is a smart, capable, very sophisticated person who has been around classified intelligence for many years. He was national security adviser. And so he knows the rules. And they are strictly enforced in Washington. This is not so mildly classified. Some of this material was so classified, its classification is classified. So it's a very, very big to mishandle this information, much less lose it, as he apparently did. His lawyer admits that he took some of this information out of the room in his clothing. He did it twice and he did it with the same document apparently.
So maybe it was all a mistake. It's awfully hard to believe. And, in any case, it's not a joking matter. So, for former President Clinton to say he was laughing about it, laughing about this criminal investigation, it's kind of hard to believe, actually.
O'BRIEN: All right.
Mr. Begala, what do you think, honest mistake? And perhaps more important to what's at hand in the next few days, what's the political impact for Kerry?
BEGALA: Well, I don't think there's any political impact for Kerry. I think there's a potential impact for the Bush administration.
Sandy's conduct has been under investigation for 10 months, 10 months, Miles. Now, a prosecutor's job is to speak through an indictment. If he broke the law, they ought to indict his butt and put him in jail. But you know what? They didn't. You know why? Because he didn't. But now what they're doing on the eve of a 9/11 Commission report that is likely to reveal or repeat, rather, that Sandy Berger warned the Bush administration about the threat from al Qaeda and that his warnings fell on deaf ears -- before that report comes out, there is a smear job on Sandy Berger.
I think the timing is obvious. It's extraordinary. And I think that the Bush-Ashcroft Justice Department is trying to become more like the Nixon-Mitchell Justice Department and doing anything they can to smear their political opponents. And I think it's reprehensible.
(CROSSTALK)
CARLSON: That is just a disgusting line of attack.
O'BRIEN: It's interesting how quickly the rhetoric got right into Watergate. Third-rate burglary was tossed around on Capitol Hill.
Tucker, could there be a backlash in all this, as Paul suggests?
CARLSON: Well, look, nobody denies that the former national security adviser did something wrong. He did. There's a criminal investigation of this. And to immediately follow the old political axiom, never defend, always attack and go after unseen forces, this conspiracy, another right-wing conspiracy, and we've heard this before. It's tiresome.
Look, I'm not saying Sandy Berger intentionally committed a crime. I'm merely saying that something significant and wrong happened. He admits as much. And to write it all off as part of some conspiracy is evidence of deep unseriousness on the point of his allies. These are classified -- this is national security information, classified documents. To lose them, come on. (CROSSTALK)
BEGALA: What I'm saying is, put up or shut up.
A prosecutor who leaks to the press is a prosecutor who doesn't have a case. And for John Ashcroft and George W. Bush to allow this to leak right before the report comes out, it's obviously political. Come on, Miles. They've had it for 10 months. They've had this information. Why are they only telling CNN, "The New York Times" and AP about this now? Why?
There's no other plausible explanation. It's obviously political.
(CROSSTALK)
O'BRIEN: Let's talk a little bit about Boston right now. We've been talking a lot today about the hyper security there, the fact that there's kind of this cage for people in which to protest.
Tucker, why do they need to cage up the First Amendment? It's one thing -- we all know post 9/11, we need security. But to actually have a cage over so they can't lob anything out of there seems a little excessive.
CARLSON: Well, it is excessive. And whenever you allow the security people, some of whom -- a few of whom are good-intentioned, to have full control over an event -- and it happens in Washington. I see it all the time as someone who lives there -- you are going to have authoritarian measures that don't into account the needs of ordinary people.
That's where you get Secret Service agents telling you to shut up and get out of the way, as if they're God. And that's exactly what is going on here, coupled with this massive construction project that you, Miles O'Brien, and I and Paul Begala are all paying for, the Big Dig, which is not yet done. It's very, very difficult to get around the city. It took us like 40 minutes to get from our hotel over to where we are now. It's only a couple of miles. So I think it is going to get much worse. I'm on the ACLU's side on this, by the way.
O'BRIEN: All right.
And a final thought here. The favorite picture of the day, of course, Jenna Bush, let's put it on the screen there, if we can.
Paul Begala, you've got to love Jenna Bush sticking out your tongue. If you're a Democratic operative, you are going to make some use of this campaign surrogate on the other side, right?
BEGALA: No. No. She's an utterly charming young woman.
I think it's just terrific that she's willing to give her time and go help her daddy and his campaign. He needs a lot of help. Maybe if she were on the ballot, her father would be doing better. But I just think she's terrific. I think the president ought to be really proud of his kids. They, from all outward appearances, are great girls.
And I love that she has got that kind of sense of humor and then lightness. There was a time, actually years ago, when George W. Bush was my friend. And he actually had a sense of humor. It's in a secure and undisclosed location now. He's all dark and gloomy these days, I guess anticipating his defeat in a few months.
But I love seeing that kid out there. And I just think she's terrific. She's just a very charming girl.
O'BRIEN: Tucker?
CARLSON: It is a cute picture. Kind of hard to spin it any other way. Yes, it is charming. It's appealing when people stick out their tongue at you. I like it.
(LAUGHTER)
O'BRIEN: All right, guys. Give it to us. Give it to us. Come on, quickly, stick out the tongues. Come on. There you go. All right.
(LAUGHTER)
(CROSSTALK)
BEGALA: Well, you missed it, Miles. I already...
CARLSON: Thank you.
O'BRIEN: Begala and Carlson, thank you very much.
CARLSON: Thanks, Miles.
BEGALA: Thanks, Miles.
O'BRIEN: And welcome to Boston. We look forward to hearing from you while you're there.
Make sure to stick around for a full edition of "CROSSFIRE." That's live from Boston, of course, today 4:30 Eastern time. And, of course, watch the Democratic National Convention on CNN. Our special coverage begins Monday 7:00 p.m. Eastern time -- Kyra.
PHILLIPS: Well, Miles, I think these guys might have been sticking their tongues out. Some Tennessee inmates break out of jail only to return with several six-packs. The story of the ultimate beer run ahead on LIVE FROM.
And she's not making a beer run, but pop star Britney Spears may soon be making some late-night diaper runs. Find out why after a break.
(COMMERCIAL BREAK)
PHILLIPS: President Bush at the Oval Office with the president of Romania taking questions from reporters. Let's listen.
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The prime minister will call somebody from the Romanian press. And then we'll do that one more time.
Mr. Prime Minister, welcome.
We've just had a very good visit. It's the kind of visit that friends would have. We talked about our relationship. I complimented Romania and the prime minister's understanding that we need to work together to fight terror.
We talked about the need to continue to work together to spread freedom and, therefore, peace in troubled parts of the world. I want to thank him very much for his understanding and his vision.
We talked about economic ties. He asked if it would be possible to spread the word that Romania is a good place to invest, and I told him that, because the country makes the right decisions, that American companies will take a look at Romania. Trade is up, which is good for Romanian people and for the American people. There's commerce going back and forth, which is a positive development.
I congratulated the prime minister on Romania's role at the United Nations. They handled the presidency very well, and we appreciate that very much.
So it's been a very good visit.
And I'm glad you're back, and I look forward to further discussions with you.
ADRIAN NASTASE, ROMANIAN PRIME MINISTER: Thank you very much, Mr. President.
It's good to be back. Mr. President, thank you for your hospitality.
It is, by the way, the first time that I am here representing an ally of the United States. And I am very proud to come here to confirm to the president our continued support for fighting together terrorists in the world, and also our support for the vision of President Bush not only on general issues, but very specifically on a very complex process of changes in Iraq.
I had the honor to chair the Security Council during the (INAUDIBLE) in New York. And I briefed the president with major decisions, prospects, possibilities which I've now offered, for a wise political decision concerning Iraq. Reconstruction...
(END VIDEOTAPE)
PHILLIPS: OK, we are going to take it right back. The tape had froze there for a second. We'll take you back to the president meeting with the president of Romania.
(BEGIN VIDEOTAPE)
NASTASE: Well, I briefed the president also on regional developments. I briefed the president with some of the developments on the continuous reforms that we are making in Romania, but also, I wanted to show him that we are interested in opening more transparent procedures and better integrity standards for civil servants and politicians.
I think this is part of the end of the transition in a country which suffered a lot, but where there is a huge willingness to understand what can make us speed up the process of modernization. And we count very much on President Bush and on his colleagues and also on the American businessmen.
It was also very important to discuss about what happens now in areas like the Black Sea, the Balkans. And I offered the president a five-star location for military bases. And there will be a decision on that.
Mr. President, may I say also that now, for us, being here, it's a great privilege, a great honor. We remember with great pleasure your visit to Bucharest and the rainbow speech and the gathering of more than 200,000 people.
Thank you very much again.
BUSH: Thank you, Mr. Prime Minister.
QUESTION: Thank you, Mr. President.
President Clinton suggested that perhaps politics was behind the disclosure of the Sandy Berger investigation. Do you have anything to say about that?
And also what did you learn about this probe?
BUSH: Look, I'm not going to comment on this matter. This is a serious matter. And it will be fully investigated by the Justice Department.
QUESTION: (OFF-MIKE)
BUSH: I'm not going to comment on it. It's a very serious matter that will be fully investigated by the Justice Department.
QUESTION: Mr. President, you said something about improving of economic relations between Romania and the U.S. Can you be more specific on that issue, please?
BUSH: Relations improve as market conditions improve inside Romania. In other words, American businesses look for places to invest capital where they can get a reasonable rate of return. American businesses like environments where there's transparency and strong anti-corruption rules, where the workforce is well-educated and hardworking.
And the prime minister and I talked about those ingredients. He said he's had some good visits with business leaders here in America. But those are decisions in our country that are made a part from government.
Each individual business will make that decision, their investment decisions in Romania apart from the offices of government. And that's what the prime minister understands. And, as he said, he had some good visits today. I'm sure he'll brief you on those visits later on.
QUESTION: Your advisers were meeting today with the chairman of the 9/11 commission. In light of what you know now, do you think the attacks were preventable? And, also, do you plan to meet personally with the commissioners to discuss their findings and recommendations?
BUSH: First of all, I haven't talked to my advisers who have met with the commission yet.
QUESTION: OK.
BUSH: I will later on.
Secondly: I am going to meet with, as I understand it, with the chairman and vice chairman of the commission. So I haven't had a chance to fully see -- read that which they have developed. I look forward to it. I've always said this is an important commission. and the main reason why is because a president and a Congress must have the best possible intelligence to make good decisions about how to protect America and our friends and allies.
I mean, we've spent a lot of time today talking about counterterrorism or counterproliferation. And the best way to succeed in those efforts is to share intelligence. And, therefore, we need to have good intelligence.
The main recommendations, as I understand it, from the 9/11 commission, will be as how best to structure the intelligence agencies.
Again, I haven't seen the report. I hope they talk about more human intelligence, because human intelligence is one of the most effective ways for us to gather intelligence in the first place. I hope they talk about, and I suspect they will, about using modern technologies to better listen and see events taking place so that we can protect ourselves. And then, of course, there needs to be a full discussion about how best to coordinate the different intelligence- gathering services here in the country.
Let me say one other thing about the 9/11. I told the commissioners, right here in the Oval Office, that had we had any inkling whatsoever that terrorists were about to attack our country, we would have moved heaven and earth to protect America. And I'm confident President Clinton would have done the same thing. Any president would. So, anyway, I'm looking forward to the report. I'm glad. They've done a lot of good work, and it's going to be very useful for the country to listen to what they have to say.
QUESTION: Question for President Bush. In both the United States and Romania you have elections this autumn. There might be four possibilities. Either you win and Mr. Nastase wins. Either you both lose. Either one of you is winning, the other one is losing.
BUSH: Right.
QUESTION: Sir, which one of these four possibilities represents the biggest disadvantage for Romania?
(LAUGHTER)
BUSH: Well, let me answer you this way. I am going to win. And the prime minister told me he is going to win. And therefore, the other three possibilities you've just outlined are not going to happen.
The interesting thing is is that here we are talking about elections in Romania. That's what I was thinking during this discussion, that a person standing for election in Romania and the United States president are now talking about what it means to campaign, a conversation which would not have been taking place 20 years ago.
You know, I'll never forget my trip to Bucharest at the rainbow speech. It was one of the most moving experiences of my presidency. And the reason why was that the rainbow itself that appeared in the midst of a rain storm, in front of 200,000-plus people ended right behind -- from my vision, ended right behind the place where the tyrant Ceausescu gave his last speech.
It was a very powerful message. It moved me deeply during the moment. And it still moves me to think that there was a powerful message being delivered by nature, to the point where I remember turning back to the people of Romania and said, "God is smiling on Bucharest." And I meant that.
And part of my beliefs, Mr. Prime Minister, is that one of the great universal values of the world is that men and women deserve to be free. And here we are talking about an election, voted on in your country and mine by free people.
Thank you for coming.
QUESTION: (OFF-MIKE)
BUSH: Still thinking about it.
QUESTION: (OFF-MIKE)
BUSH: I'm think about it, right.
I heard you passed the challenge -- no, I got the word from the agents...
PHILLIPS: That's the president of the United States not meeting long ago with the prime minister of Romania, talking about their campaign together. But also the president there making a couple of comments about the investigation into Sandy Berger and the taking of documents from the National Archive.
Straight ahead, "JUDY WOODRUFF'S INSIDE POLITICS." We'll see you tomorrow.
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