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Democrats Begin Final Convention Preparations; President Bush Laying Low This Week; More Violence In Iraq; U.S. Uses High-Tech Devices In Bin Laden Search

Aired July 26, 2004 - 13:00   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: The stage is set, the lights are lit; a cast of thousands is converging, credentials in hand.
It's the Democratic National Convention, the ultimate political reality show, except for the fact that it's scripted down to the millisecond.

It all begins three hours from now at the FleetCenter in Boston, which is precisely where we find CNN's Bob Franken -- Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: I always thought that "political reality," Miles, was an oxymoron. But we'll take your word for it.

They're doing the final -- final audio checks, that type of thing. And in just a few hours, the FleetCenter, which is usually a venue for sport events, gets down to the political sport of the Democratic Nominating Convention.

Everything now is falling into place inside. As I said, they're doing the "Amazing Grace" soundcheck right now. That's the song playing. It'll be an amazing pace as one speaker after another makes his appearance.

Probably the headliner this evening will be former President Bill Clinton speaking on a Monday night -- separated as far as possible from John Kerry's Thursday night appearance so he doesn't overshadow him.

Former President Clinton will be introduced by Senator Hillary Clinton, of course his wife, and former Vice President Al Gore will also be speaking.

All of these speeches, by the way, going through what we call, in our business, script approval. The Democrats are making sure that the tone here is the one they want to convey. A tone of a positive convention. They'll save the political brawl till after the convention.

Now, that's what's going on inside. Outside, it's fairly grim as far as walking around, getting from one place to another, because of the extraordinary security.

There are magnetometers just about everywhere you go. One can expect to have his or her bags searched just about every five feet. That, of course, necessary because the city and the event has been called a national security event.

That has meant that National Guard troops are brought in to supplement massive numbers of security forces, the civilian ones under the auspices of the Secret Service, but including other federal officials, even including these people, some of them who are at the airports usually.

So, this is quite an event; the security is unprecedented. The Democrats are hoping that they get the traditional bounce from here, although they're downplaying that possibility, as they get ready for what promises to be one really tough election campaign -- Miles.

O'BRIEN: CNN's Bob Franken at the FleetCenter, thank you very much.

So, here's how it's going to go down at the FleetCenter tonight. Four years after he was picked as the party's nominee, former Vice President Al Gore, one of the featured speakers -- there are about 40 of them.

So, will former President Jimmy Carter. They'll be followed by Senator Hillary Rodham Clinton -- who introduces her husband, former President Bill Clinton, as Bob just pointed out to you.

Democrats hope at least one of those speakers will upstage an off-the-cuff unpleasantry from prospective first lady Teresa Heinz Kerry. Ironically the trouble started when Heinz Kerry urged her home state delegates to elevate the tone of political discourse.

(BEGIN VIDEO CLIP)

TERESA HEINZ KERRY, WIFE OF SEN. JOHN KERRY: We need to turn back some of the creepiness (ph) un-Pennsylvanian (ph) and sometimes un-American traits that have come into some of our politics.

(END VIDEO CLIP)

O'BRIEN: A few moments later, the editorial page editor from "The Pittsburgh Tribune-Review" asked for clarification.

(BEGIN VIDEO CLIP)

HEINZ KERRY: No, I didn't say that.

COLIN MCNICKLE, "PITTSBURGH TRIBUNE-REVIEW": What did you mean?

HEINZ KERRY: I didn't say that. I didn't say that.

MCNICKLE: I'm just asking what you said.

HEINZ KERRY: Well, why you -- well why did you put those words in my mouth?

MCNICKLE: Well, you said something about un-American...

HEINZ KERRY: No, I didn't say that. I did not say activity or un-American. Those are your words. You can record it in...

(END VIDEO CLIP)

O'BRIEN: All right. She clearly said un-American. She didn't say un-American activities. Nevertheless, she wasn't finished with Colin McNickle, the editor, either.

(BEGIN VIDEO CLIP)

HEINZ KERRY: ... of course. Understandable. You say something I didn't say, now shove it.

(END VIDEO CLIP)

O'BRIEN: OK, later in a paper statement, the campaign said it was a moment of extreme frustration aimed at right-wing rag -- their words -- that has consistently misrepresented the facts when reporting on Mrs. Heinz Kerry.

Heinz Kerry addresses the DNC tomorrow night.

A former first lady and long-time Democratic lightning rod says the wife of the nominee to be has nothing to apologize for.

(BEGIN VIDEO CLIP)

SEN. HILLARY RODHAM CLINTON (D) NEW YORK: A lot of Americans are going to say good for you, you go, girl. And that certainly is how I feel about it.

(END VIDEO CLIP)

O'BRIEN: So, we want to know how you feel about it. Is Teresa Heinz Kerry a help or a hindrance to the Democratic ticket?

Send your e-mails to livefrom@cnn.com, and we'll try to get as many of those on the air as we can throughout the rest of our program.

The man of the hour -- make that the next 96 hours -- is nowhere near the festivities -- he's in Cape Canaveral counting down, shall we say, to the big night while trying to bring Florida into the Democratic orbit.

Here's CNN's Frank Buckley.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Senator John Kerry campaigning here in Florida, a very contested state that once again -- a state that both Senator Kerry and President Bush have visited time and again, both of them, seeing it as a crucial state in the upcoming election.

A new poll by CNN/"USA Today" and Gallup indicating that it is a very close race here. President Bush leading over Senator John Kerry, that's within the margin of error. Of course, in 2000, President Bush won here by a mere 537 votes.

Today, here at Cape Canaveral, home of the American Space Program, Senator Kerry talked about American values and optimism, and we got a sense, a flavor, of what's expected in his acceptance speech at his nominating convention, where he will talk about optimism and it will be forward looking.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We need a president who believes in science and is prepared to invest America's efforts to cure Parkinson's and AIDS and diabetes and Alzheimer's and do stem cell research. Let's go forward.

(END VIDEO CLIP)

BUCKLEY: Sadly, on the way to this event, one of the motorcycle officers involved in the motorcade took a spill, a sheriff's officer from the Brevard County Sheriff's Department going over on his motorcycle.

Senator Kerry heard about it, turned the motorcade around, came back to check on the officer. The injuries were not life threatening, and the motorcade continued on to the event.

Now Senator Kerry continues on his road to Boston -- his next stop, Norfolk, Virginia. Frank Buckley, CNN, Cape Canaveral, Florida.

O'BRIEN: The second half of the Democratic ticket is resting his voice and revising and further revising his prime-time speech to the convention. John Edwards spending the day amid his constituents in North Carolina, a state leaning heavily toward the GOP.

Now, after three straight weeks on the road, the senator's only public event today was a research triangle park destination near Raleigh.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D) VICE PRES. CANDIDATE: We believe that there needs to be an honest discussion in this presidential campaign about the difference in views about where we want to take America. I mean I -- my view is -- and John's view is -- we should be talking in positive ways about our ideas about how to make America. About tomorrow. About our future. About our vision for this country.

(END VIDEO CLIP)

O'BRIEN: Edwards's flies to Boston tomorrow and formally accepts the VP nomination on Wednesday.

Now join us tonight: our prime-time coverage of the Democratic National Convention kicks off. It all begins 7:00 Eastern with CNN's "ANDERSON COOPER." It continues as Wolf Blitzer, Larry King, and dozens of correspondents bring us the latest inside and outside the FleetCenter.

Former President Clinton, as we told you, speaks -- that'll be at 10:00 Eastern. Post-game on Aaron Brown's "NEWSNIGHT" program. "LARRY KING" wraps up the evening live at midnight Eastern time.

Where the DNC convenes, can the GOP be far behind? No. The Bush-Cheney campaign has set up a so-called truth squad, 30 members strong, to offer real-time retorts to Democratic slurs and assertions.

Put another way, the Bush camp says it means to preempt an extreme makeover of its opponent.

(BEGIN VIDEO CLIP)

NICOLLE DEVENISH, COMM. DIR. BUSH-CHENEY 2004: He has an -- a vote that's caused him a lot of problems on the campaign trail, a vote against our troops on the front lines in Afghanistan and Iraq and, you know, really a career made up of votes that you know we didn't designate him as the Senate's most out-of-the-mainstream member. It's a record that earned him that distinction.

(END VIDEO CLIP)

O'BRIEN: The president himself, in keeping with tradition, staying out of the public eye this week, but he's not staying out of the loop. Aides say he's looking at how best to implement some of the reforms recommended by the 9/11 Commission.

CNN's Suzanne Malveaux tells us more about that -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Miles, as you know, President Bush is laying low at his Crawford Ranch, but his White House aides say that he is on the fast track when it comes to those 9/11 Commission recommendations.

This morning, he held his first task force meeting regarding those changes through a secured video teleconference. It lasted about 40 minutes or so, involved a number of high-level officials, some in the situation room at the White House, others who were joining him on that call.

Those who were participating in this call this morning: Attorney General John Ashcroft, FBI Director Robert Mueller, Homeland Security Secretary Tom Ridge, Chief of Staff Andy Card, the acting director of the CIA John McLaughlin, Chairman of the Joint Chiefs of Staff Richard Myers, as well as White House Counsel Al Gonzales, Counter-terrorism Advisor Fran Townsend and of course National Security Advisor Condoleezza Rice.

Now she will be traveling to the Crawford ranch to join the president -- that is -- where they'll continue with these deliberations and these discussions. He will continue to receive these briefings.

What White House officials -- senior administration officials have told us the focus here is for the president to try to find those recommendations about half of them that he can enact immediately through executive order.

We have also been told that a focus of this as well is that no decisions have been made on that controversial proposal about establishing a national director of intelligence, but sources are telling us that the president is leaning toward that, that he has moved forward somewhat.

The White House, the administration somewhat divided on that controversial issue, but we have been told that they are leaning, moving toward that direction -- Miles.

O'BRIEN: Suzanne, if they head down that road, what is the process of creating such a post?

MALVEAUX: Well this is something of course that is going to require Congress' approval, this is something that they will be holding hearings on in August -- this means that you would have an individual who has a direct line to the president -- they would be responsible for the budget and all 15 intelligence agencies.

As you can imagine, this is controversial because it involves money, it involves power. This is something that Secretary of Homeland Security Tom Ridge has come out against. This is also something that the acting director of the CIA has said he does not approve either.

But we are told by those familiar with those deliberations that they believe for the most part those in the administration believe this is not another layer of bureaucracy, this is something that needs to happen.

O'BRIEN: Suzanne Malveaux, near the president's ranch. Thank you very much.

"TIME" magazine once called Ralph Reed the right hand of God, and now he is the Bush campaign's right hand man for strategy in the South -- a crucial place, obviously.

We'll talk with him about combating Kerry live from Boston. Plus, a high-tech hunt for Osama bin Laden and new technology looking for clues the naked eye might miss.

And prison poetry while awaiting trial on charges of committing atrocities: Saddam Hussein is apparently dabbling in the arts.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

O'BRIEN: In Iraq, more suicide bombings and assassinations to tell you about amid persistent tension over the continuing hostage situation. CNN's Michael Holmes is in Baghdad.

(BEGIN VIDEOTAPE) MICHAEL HOLMES, CNN CORRESPONDENT: In recent days and weeks, the news has been about hostages and also about assassinations of public figures. There was news on both fronts today, first of all an official at the interior ministry.

Brigadier General Musab al-Awadi, the head of tribal affairs at that ministry, was gunned down in a drive-by shooting as he left his home this morning. Two of his bodyguards were also killed.

On the hostage front, those seven hostages -- three Indians, three Kenyans and one Egyptian -- a new video released by those holding them today. The group calling themselves the Black Banners Brigade. They said they were going to extend the deadline before they started killing their hostages. They didn't say by how long but they said it was to allow negotiations to continue.

They also reaffirmed their call for the withdrawal of the men's employer, a Kuwaiti trucking company, but also warned the Indian government to not criticize the insurgents.

Now, CNN has been told by sources that this could well be about a criminal gang rather than a political one and that there is a lot of talk about money being paid to have these hostages released. How much, nobody knows for sure. We are told by people close to the negotiations, however, that they are hopeful of a positive outcome.

There's been a lot of violence around the country today, too -- a car bomb here in Baghdad, also mortars here in Baghdad, but no casualties from each. A different story in Basra in the south, however. A group of Iraqi civilians who were headed to work at the airport there, which is controlled by the British military, came under attack from gunmen in a car. Two women who worked as cleaners at the airport were killed, three others were wounded.

And in the north, in Mosul, a car bomb blew up 50 meters from the main gate at the Mosul Airfield, killing an Iraqi civilian -- also a child and an Iraqi security man. The suicide bomber also dying, of course. Five other people were wounded, three of them U.S. soldiers. And we're told that incident could have been a lot worse. Inside that car were rockets and a mortar. None of them went off.

Michael Holmes, CNN, Baghdad.

(END VIDEOTAPE)

O'BRIEN: News around the world now. Iraq's deposed dictator is apparently spending his days reading, writing poetry, and gardening. Iraq's human rights minister tells the British newspaper "The Guardian" that Saddam Hussein is being kept in good condition as he awaits trial. He says Hussein has especially taken a liking to American snacks such as cookies and muffins.

A cargo plane packed with humanitarian aide has left Britain for Sudan. The plane is carrying sanitation and water purification equipment for tens of thousands of people displaced by a rebel revolt there. The European Union is threatening to impose sanctions against Sudan's government if it does not take steps to end that conflict.

And Israel is refusing to allow nuclear whistle-blower Mordechai Vanunu to leave the country. Israel's top court is upholding restrictions imposed on Vanunu after his 18-year prison term for treason and espionage ended in April. Vanunu wanted to go to the U.S. to find a wife and study history.

Facing threats of an imminent attack, the intelligence community is redoubling its efforts to find the world's number one terrorist, Osama bin Laden.

CNN Pentagon correspondent Barbara Starr shows us the incredible role technology is playing in this hunt.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: In the hunt for Osama bin Laden, the U.S. intelligence community now is using leading-edge technology that sorts through satellite imagery to find patterns unseen by the eye. It's called change detection. Here is how it works.

Satellites are scanning western Pakistan near the Afghan border, looking for, perhaps, a newly paved road, cars, and a mountain camp. Initial tips, not that bin Laden is there, but clues that al Qaeda may be gathering to plot.

It's a trail of breadcrumbs that bin Laden and his associates might leave behind.

Change detection looks at how these clues in satellite images evolve. High-speed computers convert imagery into a bar graph that charts the pixels, dots of pure black to pure white and all of the grays.

Analysts then look for change. For example, a sudden increase in the range of gray tones that result when the gravel is laid for a new road. They can also remove certain features of a landscape to enhance others and isolate subtle changes with mathematical precision.

Analysts will then go a step further, asking themselves, for example, if what they see is really a new road, looking for very small developments like a satellite dish on top of a house. Would any of this tip off bin Laden's location or those who are hiding him?

Only then would aerial and ground sensors be used to fence off a suspect area, trying to catch anyone who might attempt to cross, maybe an eventual key informant, maybe Osama bin Laden.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

O'BRIEN: A possible piece of evidence in the search for a missing Utah woman: Forensics teams focusing on a Dumpster. We're live from Salt Lake City. And hanging by a thread or, in this case, an axle: a tense traffic tie up in Florida Keys.

And we'll go back to Boston's FleetCenter where we'll talk with Bush campaign strategist Ralph Reed about competing in a really tight race for the White House. Reed is a man who has political ironsides. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: News across America now. Traffic is moving again on the main road through the Florida Keys after a harrowing accident. A tractor-trailer practically fell over the side of the bridge after a morning crash.

One person injured; no word on whether it was the truck driver or another person involved in the crash.

A big battle brewing in the battleground state of Ohio over the state's punch card voting system. A judge is hearing a case brought on by the ACLU to get rid of Ohio's punch-card ballots before the presidential election. The ACLU says it wants to avoid a repeat of the Florida ballot debacle of 2000.

And Martha Stewart is considering serving her prison sentence ahead of her appeal for the sake of her company. That's according to Stewart's lawyer. The homemaking maven is facing five months in jail for lying to investors about her sale of ImClone stock.

The Democrats are throwing quite a party this week in Boston. Next month it's the Republicans turn in New York of course but all those balloons and confetti aren't free. Mary Snow joining us from the New York Stock Exchange to find out how much we are all paying for this party -- hello, Mary.

MARY SNOW, CNN FINANCIAL NEWS: Hi there Miles. Yes, the party's aren't cheap -- the Democrats and Republicans spending millions of dollars at their conventions this summer to promote their presidential tickets.

Republicans are spending more money according to preliminary caps -- not a complete surprise though since they're having their convention here in New York and just renting out Madison Square Garden alone costs $5 million.

Boston's FleetCenter, meanwhile, looks like a bargain for the Democrats when you compare it at $3.5 million right there.

In total, the GOP is shelling out more than $63 million. The Democrats are spending about $39 million. This is all according to the campaign finance Institute. It says the final tab, however, can go several million dollars higher as extra costs are tacked on.

One interesting line item: The Republican Party parties will be costing about $8 million. By comparison, the Democrats are just allowing about $2 million for their celebrations, but that is a preliminary count, Miles.

O'BRIEN: All right, let's talk about money on Wall Street. Moving rather briskly today, Mary?

SNOW: Not really. Not a lot of buying and that is a trend that we've been seeing now for quite some time. Stocks once again lower, this as lingering concerns about corporate profits continue to drag on the market.

Let's take a look at the latest numbers: the Dow Industrials right now -- pretty much flat; and the Nasdaq composite is shedding three quarters of one percent.

And that is the very latest from Wall Street. Still ahead: Wi- fi for wireless phones. You may soon be able to get high-speed Internet connections anywhere you go. We'll have that story when LIVE FROM continues right after this break.

(COMMERCIAL BREAK)

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Aired July 26, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: The stage is set, the lights are lit; a cast of thousands is converging, credentials in hand.
It's the Democratic National Convention, the ultimate political reality show, except for the fact that it's scripted down to the millisecond.

It all begins three hours from now at the FleetCenter in Boston, which is precisely where we find CNN's Bob Franken -- Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: I always thought that "political reality," Miles, was an oxymoron. But we'll take your word for it.

They're doing the final -- final audio checks, that type of thing. And in just a few hours, the FleetCenter, which is usually a venue for sport events, gets down to the political sport of the Democratic Nominating Convention.

Everything now is falling into place inside. As I said, they're doing the "Amazing Grace" soundcheck right now. That's the song playing. It'll be an amazing pace as one speaker after another makes his appearance.

Probably the headliner this evening will be former President Bill Clinton speaking on a Monday night -- separated as far as possible from John Kerry's Thursday night appearance so he doesn't overshadow him.

Former President Clinton will be introduced by Senator Hillary Clinton, of course his wife, and former Vice President Al Gore will also be speaking.

All of these speeches, by the way, going through what we call, in our business, script approval. The Democrats are making sure that the tone here is the one they want to convey. A tone of a positive convention. They'll save the political brawl till after the convention.

Now, that's what's going on inside. Outside, it's fairly grim as far as walking around, getting from one place to another, because of the extraordinary security.

There are magnetometers just about everywhere you go. One can expect to have his or her bags searched just about every five feet. That, of course, necessary because the city and the event has been called a national security event.

That has meant that National Guard troops are brought in to supplement massive numbers of security forces, the civilian ones under the auspices of the Secret Service, but including other federal officials, even including these people, some of them who are at the airports usually.

So, this is quite an event; the security is unprecedented. The Democrats are hoping that they get the traditional bounce from here, although they're downplaying that possibility, as they get ready for what promises to be one really tough election campaign -- Miles.

O'BRIEN: CNN's Bob Franken at the FleetCenter, thank you very much.

So, here's how it's going to go down at the FleetCenter tonight. Four years after he was picked as the party's nominee, former Vice President Al Gore, one of the featured speakers -- there are about 40 of them.

So, will former President Jimmy Carter. They'll be followed by Senator Hillary Rodham Clinton -- who introduces her husband, former President Bill Clinton, as Bob just pointed out to you.

Democrats hope at least one of those speakers will upstage an off-the-cuff unpleasantry from prospective first lady Teresa Heinz Kerry. Ironically the trouble started when Heinz Kerry urged her home state delegates to elevate the tone of political discourse.

(BEGIN VIDEO CLIP)

TERESA HEINZ KERRY, WIFE OF SEN. JOHN KERRY: We need to turn back some of the creepiness (ph) un-Pennsylvanian (ph) and sometimes un-American traits that have come into some of our politics.

(END VIDEO CLIP)

O'BRIEN: A few moments later, the editorial page editor from "The Pittsburgh Tribune-Review" asked for clarification.

(BEGIN VIDEO CLIP)

HEINZ KERRY: No, I didn't say that.

COLIN MCNICKLE, "PITTSBURGH TRIBUNE-REVIEW": What did you mean?

HEINZ KERRY: I didn't say that. I didn't say that.

MCNICKLE: I'm just asking what you said.

HEINZ KERRY: Well, why you -- well why did you put those words in my mouth?

MCNICKLE: Well, you said something about un-American...

HEINZ KERRY: No, I didn't say that. I did not say activity or un-American. Those are your words. You can record it in...

(END VIDEO CLIP)

O'BRIEN: All right. She clearly said un-American. She didn't say un-American activities. Nevertheless, she wasn't finished with Colin McNickle, the editor, either.

(BEGIN VIDEO CLIP)

HEINZ KERRY: ... of course. Understandable. You say something I didn't say, now shove it.

(END VIDEO CLIP)

O'BRIEN: OK, later in a paper statement, the campaign said it was a moment of extreme frustration aimed at right-wing rag -- their words -- that has consistently misrepresented the facts when reporting on Mrs. Heinz Kerry.

Heinz Kerry addresses the DNC tomorrow night.

A former first lady and long-time Democratic lightning rod says the wife of the nominee to be has nothing to apologize for.

(BEGIN VIDEO CLIP)

SEN. HILLARY RODHAM CLINTON (D) NEW YORK: A lot of Americans are going to say good for you, you go, girl. And that certainly is how I feel about it.

(END VIDEO CLIP)

O'BRIEN: So, we want to know how you feel about it. Is Teresa Heinz Kerry a help or a hindrance to the Democratic ticket?

Send your e-mails to livefrom@cnn.com, and we'll try to get as many of those on the air as we can throughout the rest of our program.

The man of the hour -- make that the next 96 hours -- is nowhere near the festivities -- he's in Cape Canaveral counting down, shall we say, to the big night while trying to bring Florida into the Democratic orbit.

Here's CNN's Frank Buckley.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT: Senator John Kerry campaigning here in Florida, a very contested state that once again -- a state that both Senator Kerry and President Bush have visited time and again, both of them, seeing it as a crucial state in the upcoming election.

A new poll by CNN/"USA Today" and Gallup indicating that it is a very close race here. President Bush leading over Senator John Kerry, that's within the margin of error. Of course, in 2000, President Bush won here by a mere 537 votes.

Today, here at Cape Canaveral, home of the American Space Program, Senator Kerry talked about American values and optimism, and we got a sense, a flavor, of what's expected in his acceptance speech at his nominating convention, where he will talk about optimism and it will be forward looking.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: We need a president who believes in science and is prepared to invest America's efforts to cure Parkinson's and AIDS and diabetes and Alzheimer's and do stem cell research. Let's go forward.

(END VIDEO CLIP)

BUCKLEY: Sadly, on the way to this event, one of the motorcycle officers involved in the motorcade took a spill, a sheriff's officer from the Brevard County Sheriff's Department going over on his motorcycle.

Senator Kerry heard about it, turned the motorcade around, came back to check on the officer. The injuries were not life threatening, and the motorcade continued on to the event.

Now Senator Kerry continues on his road to Boston -- his next stop, Norfolk, Virginia. Frank Buckley, CNN, Cape Canaveral, Florida.

O'BRIEN: The second half of the Democratic ticket is resting his voice and revising and further revising his prime-time speech to the convention. John Edwards spending the day amid his constituents in North Carolina, a state leaning heavily toward the GOP.

Now, after three straight weeks on the road, the senator's only public event today was a research triangle park destination near Raleigh.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D) VICE PRES. CANDIDATE: We believe that there needs to be an honest discussion in this presidential campaign about the difference in views about where we want to take America. I mean I -- my view is -- and John's view is -- we should be talking in positive ways about our ideas about how to make America. About tomorrow. About our future. About our vision for this country.

(END VIDEO CLIP)

O'BRIEN: Edwards's flies to Boston tomorrow and formally accepts the VP nomination on Wednesday.

Now join us tonight: our prime-time coverage of the Democratic National Convention kicks off. It all begins 7:00 Eastern with CNN's "ANDERSON COOPER." It continues as Wolf Blitzer, Larry King, and dozens of correspondents bring us the latest inside and outside the FleetCenter.

Former President Clinton, as we told you, speaks -- that'll be at 10:00 Eastern. Post-game on Aaron Brown's "NEWSNIGHT" program. "LARRY KING" wraps up the evening live at midnight Eastern time.

Where the DNC convenes, can the GOP be far behind? No. The Bush-Cheney campaign has set up a so-called truth squad, 30 members strong, to offer real-time retorts to Democratic slurs and assertions.

Put another way, the Bush camp says it means to preempt an extreme makeover of its opponent.

(BEGIN VIDEO CLIP)

NICOLLE DEVENISH, COMM. DIR. BUSH-CHENEY 2004: He has an -- a vote that's caused him a lot of problems on the campaign trail, a vote against our troops on the front lines in Afghanistan and Iraq and, you know, really a career made up of votes that you know we didn't designate him as the Senate's most out-of-the-mainstream member. It's a record that earned him that distinction.

(END VIDEO CLIP)

O'BRIEN: The president himself, in keeping with tradition, staying out of the public eye this week, but he's not staying out of the loop. Aides say he's looking at how best to implement some of the reforms recommended by the 9/11 Commission.

CNN's Suzanne Malveaux tells us more about that -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Miles, as you know, President Bush is laying low at his Crawford Ranch, but his White House aides say that he is on the fast track when it comes to those 9/11 Commission recommendations.

This morning, he held his first task force meeting regarding those changes through a secured video teleconference. It lasted about 40 minutes or so, involved a number of high-level officials, some in the situation room at the White House, others who were joining him on that call.

Those who were participating in this call this morning: Attorney General John Ashcroft, FBI Director Robert Mueller, Homeland Security Secretary Tom Ridge, Chief of Staff Andy Card, the acting director of the CIA John McLaughlin, Chairman of the Joint Chiefs of Staff Richard Myers, as well as White House Counsel Al Gonzales, Counter-terrorism Advisor Fran Townsend and of course National Security Advisor Condoleezza Rice.

Now she will be traveling to the Crawford ranch to join the president -- that is -- where they'll continue with these deliberations and these discussions. He will continue to receive these briefings.

What White House officials -- senior administration officials have told us the focus here is for the president to try to find those recommendations about half of them that he can enact immediately through executive order.

We have also been told that a focus of this as well is that no decisions have been made on that controversial proposal about establishing a national director of intelligence, but sources are telling us that the president is leaning toward that, that he has moved forward somewhat.

The White House, the administration somewhat divided on that controversial issue, but we have been told that they are leaning, moving toward that direction -- Miles.

O'BRIEN: Suzanne, if they head down that road, what is the process of creating such a post?

MALVEAUX: Well this is something of course that is going to require Congress' approval, this is something that they will be holding hearings on in August -- this means that you would have an individual who has a direct line to the president -- they would be responsible for the budget and all 15 intelligence agencies.

As you can imagine, this is controversial because it involves money, it involves power. This is something that Secretary of Homeland Security Tom Ridge has come out against. This is also something that the acting director of the CIA has said he does not approve either.

But we are told by those familiar with those deliberations that they believe for the most part those in the administration believe this is not another layer of bureaucracy, this is something that needs to happen.

O'BRIEN: Suzanne Malveaux, near the president's ranch. Thank you very much.

"TIME" magazine once called Ralph Reed the right hand of God, and now he is the Bush campaign's right hand man for strategy in the South -- a crucial place, obviously.

We'll talk with him about combating Kerry live from Boston. Plus, a high-tech hunt for Osama bin Laden and new technology looking for clues the naked eye might miss.

And prison poetry while awaiting trial on charges of committing atrocities: Saddam Hussein is apparently dabbling in the arts.

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(WEATHER REPORT)

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O'BRIEN: In Iraq, more suicide bombings and assassinations to tell you about amid persistent tension over the continuing hostage situation. CNN's Michael Holmes is in Baghdad.

(BEGIN VIDEOTAPE) MICHAEL HOLMES, CNN CORRESPONDENT: In recent days and weeks, the news has been about hostages and also about assassinations of public figures. There was news on both fronts today, first of all an official at the interior ministry.

Brigadier General Musab al-Awadi, the head of tribal affairs at that ministry, was gunned down in a drive-by shooting as he left his home this morning. Two of his bodyguards were also killed.

On the hostage front, those seven hostages -- three Indians, three Kenyans and one Egyptian -- a new video released by those holding them today. The group calling themselves the Black Banners Brigade. They said they were going to extend the deadline before they started killing their hostages. They didn't say by how long but they said it was to allow negotiations to continue.

They also reaffirmed their call for the withdrawal of the men's employer, a Kuwaiti trucking company, but also warned the Indian government to not criticize the insurgents.

Now, CNN has been told by sources that this could well be about a criminal gang rather than a political one and that there is a lot of talk about money being paid to have these hostages released. How much, nobody knows for sure. We are told by people close to the negotiations, however, that they are hopeful of a positive outcome.

There's been a lot of violence around the country today, too -- a car bomb here in Baghdad, also mortars here in Baghdad, but no casualties from each. A different story in Basra in the south, however. A group of Iraqi civilians who were headed to work at the airport there, which is controlled by the British military, came under attack from gunmen in a car. Two women who worked as cleaners at the airport were killed, three others were wounded.

And in the north, in Mosul, a car bomb blew up 50 meters from the main gate at the Mosul Airfield, killing an Iraqi civilian -- also a child and an Iraqi security man. The suicide bomber also dying, of course. Five other people were wounded, three of them U.S. soldiers. And we're told that incident could have been a lot worse. Inside that car were rockets and a mortar. None of them went off.

Michael Holmes, CNN, Baghdad.

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O'BRIEN: News around the world now. Iraq's deposed dictator is apparently spending his days reading, writing poetry, and gardening. Iraq's human rights minister tells the British newspaper "The Guardian" that Saddam Hussein is being kept in good condition as he awaits trial. He says Hussein has especially taken a liking to American snacks such as cookies and muffins.

A cargo plane packed with humanitarian aide has left Britain for Sudan. The plane is carrying sanitation and water purification equipment for tens of thousands of people displaced by a rebel revolt there. The European Union is threatening to impose sanctions against Sudan's government if it does not take steps to end that conflict.

And Israel is refusing to allow nuclear whistle-blower Mordechai Vanunu to leave the country. Israel's top court is upholding restrictions imposed on Vanunu after his 18-year prison term for treason and espionage ended in April. Vanunu wanted to go to the U.S. to find a wife and study history.

Facing threats of an imminent attack, the intelligence community is redoubling its efforts to find the world's number one terrorist, Osama bin Laden.

CNN Pentagon correspondent Barbara Starr shows us the incredible role technology is playing in this hunt.

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BARBARA STARR, CNN PENTAGON CORRESPONDENT: In the hunt for Osama bin Laden, the U.S. intelligence community now is using leading-edge technology that sorts through satellite imagery to find patterns unseen by the eye. It's called change detection. Here is how it works.

Satellites are scanning western Pakistan near the Afghan border, looking for, perhaps, a newly paved road, cars, and a mountain camp. Initial tips, not that bin Laden is there, but clues that al Qaeda may be gathering to plot.

It's a trail of breadcrumbs that bin Laden and his associates might leave behind.

Change detection looks at how these clues in satellite images evolve. High-speed computers convert imagery into a bar graph that charts the pixels, dots of pure black to pure white and all of the grays.

Analysts then look for change. For example, a sudden increase in the range of gray tones that result when the gravel is laid for a new road. They can also remove certain features of a landscape to enhance others and isolate subtle changes with mathematical precision.

Analysts will then go a step further, asking themselves, for example, if what they see is really a new road, looking for very small developments like a satellite dish on top of a house. Would any of this tip off bin Laden's location or those who are hiding him?

Only then would aerial and ground sensors be used to fence off a suspect area, trying to catch anyone who might attempt to cross, maybe an eventual key informant, maybe Osama bin Laden.

Barbara Starr, CNN, the Pentagon.

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O'BRIEN: A possible piece of evidence in the search for a missing Utah woman: Forensics teams focusing on a Dumpster. We're live from Salt Lake City. And hanging by a thread or, in this case, an axle: a tense traffic tie up in Florida Keys.

And we'll go back to Boston's FleetCenter where we'll talk with Bush campaign strategist Ralph Reed about competing in a really tight race for the White House. Reed is a man who has political ironsides. Stay with us.

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O'BRIEN: News across America now. Traffic is moving again on the main road through the Florida Keys after a harrowing accident. A tractor-trailer practically fell over the side of the bridge after a morning crash.

One person injured; no word on whether it was the truck driver or another person involved in the crash.

A big battle brewing in the battleground state of Ohio over the state's punch card voting system. A judge is hearing a case brought on by the ACLU to get rid of Ohio's punch-card ballots before the presidential election. The ACLU says it wants to avoid a repeat of the Florida ballot debacle of 2000.

And Martha Stewart is considering serving her prison sentence ahead of her appeal for the sake of her company. That's according to Stewart's lawyer. The homemaking maven is facing five months in jail for lying to investors about her sale of ImClone stock.

The Democrats are throwing quite a party this week in Boston. Next month it's the Republicans turn in New York of course but all those balloons and confetti aren't free. Mary Snow joining us from the New York Stock Exchange to find out how much we are all paying for this party -- hello, Mary.

MARY SNOW, CNN FINANCIAL NEWS: Hi there Miles. Yes, the party's aren't cheap -- the Democrats and Republicans spending millions of dollars at their conventions this summer to promote their presidential tickets.

Republicans are spending more money according to preliminary caps -- not a complete surprise though since they're having their convention here in New York and just renting out Madison Square Garden alone costs $5 million.

Boston's FleetCenter, meanwhile, looks like a bargain for the Democrats when you compare it at $3.5 million right there.

In total, the GOP is shelling out more than $63 million. The Democrats are spending about $39 million. This is all according to the campaign finance Institute. It says the final tab, however, can go several million dollars higher as extra costs are tacked on.

One interesting line item: The Republican Party parties will be costing about $8 million. By comparison, the Democrats are just allowing about $2 million for their celebrations, but that is a preliminary count, Miles.

O'BRIEN: All right, let's talk about money on Wall Street. Moving rather briskly today, Mary?

SNOW: Not really. Not a lot of buying and that is a trend that we've been seeing now for quite some time. Stocks once again lower, this as lingering concerns about corporate profits continue to drag on the market.

Let's take a look at the latest numbers: the Dow Industrials right now -- pretty much flat; and the Nasdaq composite is shedding three quarters of one percent.

And that is the very latest from Wall Street. Still ahead: Wi- fi for wireless phones. You may soon be able to get high-speed Internet connections anywhere you go. We'll have that story when LIVE FROM continues right after this break.

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