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Kerry-Edwards Kicks Off Post-Convention Campaign; Bush Campaigns in Michigan

Aired July 30, 2004 - 12:59   ET

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


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


KYRA PHILLIPS, CNN ANCHOR: Road trip. A post-convention cross- country campaign. Will it convince undecided Americans to vote for John Kerry?
FREDRICKA WHITFIELD, CNN ANCHOR: George Bush hits the trail, rallying the faithful and relying on his record, hoping to stay in the White House.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R-ME), GOVERNMENTAL AFFAIRS CMTE.: We must act with speed, but not in haste.

(END VIDEO CLIP)

PHILLIPS: Political fast track. The 9/11 report delays summer vacations. Lawmakers in overtime to make America safer against terror.

WHITFIELD: Saddam Hussein's life behind bars. An exclusive interview with a man who knows what it has been like for the former Iraqi dictator.

From the CNN Center in Atlanta, I'm Fredricka Whitfield. Miles O'Brien is off today.

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

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I want to address these next words directly to President George W. Bush. In the weeks ahead, let's be optimists, not just opponents. Let's build unity in the American family, not angry division.

Let's honor this nation's diversity; let's respect one another. And let's never misuse, for political purposes, the most precious document in American history -- the constitution of the United States.

(END VIDEO CLIP)

PHILLIPS: And so it begins, the nominee versus the incumbent. The senator versus the president.

One convention down, one to go. Three months and three days before the presidential election.

The newly nominated Democratic contender not only hit the ground running -- after his rousing convention, he and his would-be V.P. are about to arrive at their second campaign event of the day. That's in Scranton, Pennsylvania. You'll see it live about an hour from now right here on CNN.

This was their first event on Boston Harbor.

(BEGIN VIDEO CLIP)

KERRY: And Americans are playing by the rules, but for a whole group of people -- are writing the rules for themselves, and leaving the rest of America out.

We're going to change that around. Help is on the way for the average person in this country.

(END VIDEO CLIP)

PHILLIPS: Well, the morning after Kerry's impassioned nomination acceptance speech, his running mate offered this all-American recap.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D) VICE PRESIDENTIAL CANDIDATE: He hit a home run last night. It cleared the green monster. Sailed past the Citgo sign. And it's headed for the White House.

(END VIDEO CLIP)

PHILLIPS: Well, between them, Kerry-Edwards plans to roll across 20-plus states, 3500 miles, in the next two weeks.

CNN's Judy Woodruff does not, but she is spending one more day on the CNN Election Express in Boston.

Judy, great to see you. This is your 15th convention...

JUDY WOODRUFF, CNN ANCHOR: Hi, Kyra.

PHILLIPS: Hello. Your 15th convention. That's amazing. As you...

WOODRUFF: Can you believe it?

PHILLIPS: No -- actually, I can. You're an -- pretty amazing woman.

But I'm curious to know -- the past three days, the past four days. How's it been for you? What have been the highlights for you?

WOODRUFF: Well, Kyra, for the first thing, at the risk of repeating what everybody else in the world has said about this convention, this is the first Democratic Convention I can remember where the party was so united, where they were on message. Not only that they were on time -- for most of the time, the convention got started when it was supposed to, it wrapped up when it was supposed to, and they generally put on a good show.

But, you know, aside from all of that, the theme coming out of this convention strong and strength -- we heard it over and over again.

And last night from the first words he spoke: I'm John Kerry and I'm reporting for duty. The nominee of this party promised strong and steady leadership for America in a time of danger, and in so doing, he drew a contrast between his vision and that of George W. Bush.

(BEGIN VIDEO CLIP)

KERRY: I will be a commander-in-chief who will never mislead us into war.

I will have a vice president who will not conduct secret meetings with polluters to rewrite our environmental laws.

I will have a secretary of defense who will listen to the advise of the military leaders, and I will appoint an attorney general who will uphold the constitution of the United States.

(END VIDEO CLIP)

WOODRUFF: But it wasn't just security, Kyra, Kerry also hit at the Bush administration on its social and family policies, if you will. I'm just quoting one line. He said it's time for those who talk about family values to value families.

So I think you can say the battle is joined. We've got 95 days until the election, and they're going to be fighting it out every step of the way.

PHILLIPS: Judy, you mentioned they were on time. John Kerry was on message. A lot of people are wondering how warm is he going to be.

Is he going to come across like a John Edwards and -- right off the top, he made the joke about being born in Aurora, Colorado and yes, this is true, in the west wing of the hospital.

WOODRUFF: Well, you know he did -- he did have some attempts at humor last night, and there's no question, Kyra, they realize they need to soften him up a little bit.

I think his daughters Vanessa and Alexandra did that well. They told stories from their childhood, they tried to make their father seem more human, if you will.

But at the same time, the campaign will tell you they know that John Kerry is never going to be hailed fellow well man (ph) -- he's not a back slapper -- he's never going to come across to the American people in a -- you know -- warm, overly warm way.

But they figure, I think, that they can make any progress on that, they're doing all right.

But we'll see how the voters respond.

PHILLIPS: All right, Judy Woodruff, live from Boston. Judy thanks so much.

WOODRUFF: Thanks, Kyra.

PHILLIPS: And you can see more of Judy, of course, on the bus and one more extra special expanded edition of INSIDE POLITICS. That's at 3 p.m. Eastern, noon Pacific, right after two big hours of LIVE FROM.

WHITFIELD For President Bush, the end of the DNC means the end of this working vacation in Crawford, Texas and that means a blitz of the quintessential battleground states, including Missouri, Michigan, and Ohio.

Bush is arriving as we speak in Grand Rapids, Michigan at Gerald R. Ford International Airport for a community college event later this afternoon.

His first stop was Springfield, Missouri, and CNN's Kathleen Koch was there.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: On this misty Missouri morning, President Bush reached out to an enthusiastic crowd of over 8,000 packed into a baseball stadium here in Springfield.

President Bush said we've been through a lot together. He said his administration had accomplished a great deal, had made much progress, but that there is still more to do.

On issues like education, health care reform, the economy, the war on terror, the president repeating over and over again what is expected to be today's mantra -- quote -- we're turning a corner and we're not turning back.

The president did reference, on numerous occasions, his opponent John Kerry, talking about the Democratic convention in Boston, saying he heard a lot of, quote, clever speeches and big promises, but the president adding that good intentions don't always translate into results.

The president pointing out that voters have a clear choice in November between he and his opponent.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There are big differences in this campaign. They're going to raise your taxes; we're not. I have a clear vision on how to win the war on terror and bring peace to the world. They somehow believe the heart and soul of America can be found in Hollywood. The heart and soul of America's found right here in Springfield, Missouri.

(END VIDEO CLIP)

KOCH: Well that August (ph) reference to John Kerry's statement earlier this month at a New York fundraiser that the entertainer's presence represented the heart and soul of America.

The Bush-Cheney campaign has turned that slogan on its head, calling this campaign swing the "heart and soul of America" tour.

Now from here, President Bush heads on to two other very important battleground states, Michigan and Ohio.

Kathleen Koch, CNN, Springfield, Missouri.

(END VIDEOTAPE)

WHITFIELD: Well, almost sure to factor somewhere in the presidential campaign equation is a budget deficit that the White House now projects at $445 billion. That's $70 billion higher than last year's, which was also a record, but it's better than the $521 billion predicted back in February.

Since the fiscal year begins October 1st, we'll know the actual figure just in time for Election Day.

PHILLIPS: Well, the presidential hopefuls aren't the only politicians working overtime today. More than a dozen senators who ordinarily would be on summer recess are instead in a Capitol Hill committee room pouring over reforms recommended by 9/11 investigators.

They're pledging to act with speed, but not in haste.

CNN's Sean Callebs is watching. Sean, what do you know?

SEAN CALLEBS, CNN CORRESPONDENT: Well, I can tell you that they've been meeting for a couple of hours now and, interestingly enough, Kyra, the 9/11 Commission chairman Tom Kean opened his remarks by thanking the Senate committee for its quick reaction to the report.

Usually lawmakers are on a summer break right now, but this year the recess is being cut short. The senate has set an October deadline for having legislation drafted in response to the urgency that came from the commission's work.

The Senate Governmental Affairs Committee says that this will -- that it is going to -- focus on two of the most sweeping recommendations, the creation of a national counter terrorism center and a new high level national intelligence director.

Committee members are reacting to criticism from those who believe the Congress is being rushed into action.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R) GOVT. AFFAIRS CHAIRWOMAN: We must act with speed, but not in haste. We must be bold, but we cannot be reckless. We must protect, not just the lives of our citizens, but also those values that make life worth living.

All terrorism involves death and destruction, but the ultimate goal of terrorists is to destroy everything that we treasure and that defines us as Americans.

(END VIDEO CLIP)

CALLEBS: Among the questions the committee is expected to address; what role will national intelligence director have in setting policy.

Traditionally, establishing policy is not within the territory of Intel officials. And, what will the intelligence director do?

Will he be the one that briefs the president? And should that individual be on the Cabinet?

How will its deputies and other related offices be structured?

(BEGIN VIDEO CLIP)

LEE HAMILTON, VICE CHMN, 9/11 COMMISSION: National intelligence director would have real authority.

He will control national intelligence program purse strings; he will have hire and fire authority over agency heads in the intelligence community.

He will control the IT. He will have real troops as the national counterterrorism center and all of the joint mission centers would report to him.

We have concluded that the intelligence community is not going to get its job done unless somebody is really in charge. That is just not the case now. And we paid the price.

(END VIDEO CLIP)

CALLEBS: Six house committees have also scheduled hearings. The first one coming a few days, August 3rd, that is the House Government Reform Committee.

Now all of this after Speaker Dennis Hastert backed off his initial response to the report. Remember, he said it was unlikely Congress would consider any recommendations this year.

The Commission members are scheduled to begin traveling the country next week. A road show to try and build more momentum for the Commission's report.

PHILLIPS: All right, Sean Callebs, live from Washington. Thanks so much.

And in just a few minutes we're going to sound out ex-Republican congressman CIA veteran and CNN contributor Bob Barr on the 9/11 reforms and the fall out. That's at about half past the hour right here on LIVE FROM.

WHITFIELD: Tense moments in Iraq. A fierce firefight in Fallujah caught on tape and the U.S. secretary of state visiting Baghdad. A roundup of developments straight ahead.

Plus, is Saddam Hussein a model prisoner? An exclusive interview with the Iraqi official who got a firsthand look at the former dictator.

And apologies and revelations in the Kobe Bryant. A live report straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Fighting in Fallujah. The simmering tension in the Iraqi city erupts into fierce clashes between U.S. forces and insurgents overnight.

U.S. military officials say the trouble began when a joint patrol of Marines and Iraqi troops came under attack.

They responded with artillery, tank and air fire. Thirteen Iraqis were killed, 14 were wounded. There were no U.S. casualties.

WHITFIELD: This Friday, U.S. Secretary of State Colin Powell made a surprise visit to Baghdad. It's part of a trip he's taking to the Middle East and Europe. CNN's John Vause reports.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: Amid secrecy and tight security, Colin Powell arrived at Baghdad notably wearing a bulletproof vest.

This is the third time the U.S. secretary of state has visited Baghdad. He was met by a small group of U.S. soldiers. He stayed and chatted. He was also greeted by the new U.S. ambassador, John Negroponte.

From the airport it was a quick chopper ride to the green zone, where the U.S. embassy is located. He held high-level talks today with other U.S. officials as well as Iraqi officials, notably the Iraqi president and deputy prime minister.

It was after that meeting Colin Powell held a news conference and he talked about the wave of kidnappings, mostly of foreign workers, and the impact that was having on getting international help for Iraq.

COLIN POWELL, SECRETARY OF STATE: These kinds of violent actions certainly do have a deterring effect with respect to nation's providing troops or to progress with the reconstruction effort. But we have to keep them very much in perspective. These are criminals, these are murderers, these are terrorists who are killing innocent people who have come to Iraq to help the Iraqi people to a better life.

VAUSE: He also promised to speed up the spending of U.S. funds, which are being allocated to reconstruction and job creation.

The United States has allocated more than $18 billion for that, but so far most of it has not been spent. John Vause, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: How is Saddam Hussein? The man who used to rule Iraq with an iron fist is now awaiting trial with some of his henchmen.

Well, the world got its first glimpse of him in months when he appeared in court in July and there's been a lot of speculation about his health and living conditions before and since then.

Now we're getting a firsthand account from Iraq's human rights minister. It's a CNN exclusive.

(BEGIN VIDEOTAPE)

BAKHTIAR AMIN, IRAQI HUMAN RIGHTS MINISTER: Well, I visited the camp Kopa (ph) last Saturday and there are 96 prisoners there.

Saddam is one of them. And he's isolated from the others. He's not mingling with the others. And he's in a three by four meters room.

It's white, taupe floor, with a 100-volt bulb lamp. Was wearing dishdasha, an Arab robe, a purple-ish -- a purple-greenish color. He had a -- plastic sandals.

And reading glasses, a book in his hand. He goes out of his cell three hours per day. And he goes over to a yard, which is next to his room, and behind it there are Turkish latrines, clean.

He has become a gardener these days. I don't know, maybe he had a bad conscious for having decapitated hundreds of thousands of palm trees and permitted world's biggest ecocide of the 20th century.

(END VIDEOTAPE)

PHILLIPS: Interesting. Well, the minister says Hussein has a monthly medical screening and is in good health. He also says that a, quote, shrink is available to the prisoners but Hussein hasn't requested a consultation.

It's time to start the clock ticking on the government of Sudan. Those are the words of the U.S. ambassador to the United Nations.

He spoke after the U.S. Security Council today adopted a resolution demanding that Sudan reign in Arab militants. They'd been blamed for atrocities in the Darfur region. Human rights groups say as many as 30,000 civilians have been killed. More than 1 million people have also been left homeless.

Many of them have fled to the neighboring country of Chad. Aid groups are giving out emergency supplies of food and blankets to the thousands of people stuck outside in an overcrowded camp.

WHITFIELD: Well, now to the Kobe Bryant case. The basketball star is back in court today. He's attending one of the final two hearings before his trial begins next month and the judge in his sexual assault case is apologizing today.

CNN's Adrian Baschuk joins us now from Eagle, Colorado with apologies for some slipups and the accusers name not once, not twice, but maybe three times, Adrian?

ADRIAN BASCHUK, CNN CORRESPONDENT: Absolutely. Those three occasions came first in -- last September when the court accidentally published the name of the accuser on line.

Secondly just a few weeks ago -- just a month back when the court accidentally e-mailed transcripts, sealed transcripts of proceedings about the rape shield hearings to seven media organizations.

And then just this week when they again mistakenly published her name on the court Web site and a sealed order.

Now the judge expressing his sincere apology to the people of Eagle County, the people of Colorado and to those who have come from far away for the mistakes made by the court this week.

He went on to say, quote, I can only assure you that I have learned lessons from these mistakes and that we will give our best human effort to not let it happen again.

Now proceedings were supposed to be half open and half closed today but just after 30 minutes court closed down to the public and Kobe Bryant went behind closed doors.

(BEGIN VIDEOTAPE)

BASCHUK (voice-over): Kobe Bryant arrives to an Eagle County courtroom in controversy. Late yesterday, under pressure from the United States Supreme Court, Judge Terry Ruckriegle released 19 pages of sealed transcripts accidentally sent to media organizations in June.

They detailed charges by the defense that the accuser received $17,000 from the state's victim's compensation fund.

Bryant's attorneys saying this money was an incentive for the woman to lie about her encounter with the NBA star.

Victim advocates say the cap for compensation is $20,000 and is not a moneymaker for alleged victims. CYNTHIA STONE, COALITION AGAINST SEXUAL ASSAULT: No one has ever made money off the victim compensation fund. All it is -- it's a reimbursement for some of the hard costs.

BASCHUK: And Wednesday, court officials again accidentally released confidential information about Kobe Bryant's physical exam and revealed the alleged victim's name. Her attorney, John Clune told CNN in a phone interview his client, quote, does not trust the judge and the court and she has no reason to at this point.

Legal analysts believe the gaffe can fuel a settlement.

CRAIG SILVERMAN, FORMER DENVER DEPUTY D.A.: This way it puts a lot of pressure on everybody. I would not be surprised if there was some kind of global settlement, civil and criminal at the same time.

BASCHUK: Prosecutors denied such speculation earlier this week, saying the accuser will move forward to trial.

(END VIDEOTAPE)

BASCHUK: The alleged victim and her family wanted a personal and direct apology from Judge Terry Ruckriegle but as you heard it was far more general in scope. We spoke to John Clune, the personal attorney of the accuser in this case, and he told CNN, quote, in response to that apology today's self-serving remarks designed to improve his own image are insulting -- Fredricka.

WHITFIELD: Now, Adrian, aren't some advocates of the accuser saying that that $17,000 -- much of that money -- has been used to take care of any kind of physical or mental health care or counseling costs?

BASCHUK: That's where the bulk of the monies have gone to mental health counseling. They say of course Pamela Mackey debated this $17,000 that the accuser has received.

It doesn't come from taxpayer money. These are generated by fines of both convicted felons, traffic fines. She told the judge that the fines -- that the compensation should only be up to $1,125 but as you saw in that report, the tap in the limit is $20,000 and she is well within the bounds.

WHITFIELD: Adrian Baschuk, thanks very much.

Well, justice comes to Gitmo. Some of the detainees held at the U.S. Navy base will soon get their day in court, apparently. We're live from the Pentagon.

Assessing the damage and cleanup of the mess. The latest on the Dallas deluge straight ahead.

UNIDENTIFIED FEMALE: I'm a Mom rocker. It's a whole new genre.

WHITFIELD: From the downbeat of diaper rash to the soul of soggy spaghetti, these moms are singing their blues on the road. (COMMERCIAL BREAK)

PHILLIPS: News across America now. We start in Nashville, Tennessee -- that's where one person is killed, six others hurt in a scaffolding collapse. It happened this morning near Vanderbilt University during construction of an apartment building. Some of those injured fell six stories.

Now to Redwood City, Florida -- or California, rather for the third time the judge in the Scott Peterson case has denied a defense motion to declare a mistrial.

Peterson's attorney, Mark Geragos, argued a witness for the prosecution lied on the witness stand. He also asked for charges to be dismissed.

The judge denied that request, too. That trial will resume on Monday.

Elsewhere in California police in Irvine have interviewed a possible witness in the tainted baby food case. A spokesperson for the Orange County district attorney's office says that Charles Dewey Cage is not in custody and is not being called a suspect but the case involves three jars of Gerber baby food contaminated with ground up castor beans. They can be processed, as you know into the poison, Ricin.

WHITFIELD: Well, numbers out today show the economy is slowing down. Mary Snow joins us live from the New York Stock Exchange with details on that. Hi, Mary.

MARY SNOW, FINANCIAL NEWS: Hi, there, Fredricka.

Yes, in the latest polls on the second quarter shows that growth cooled. And it's cooled pretty dramatically. Gross domestic product, the broadest measure of the economy grew by a modest 3 percent, weaker than economists were expecting and also it's much smaller -- slower than the revised 4.5 percent growth rate in the first quarter.

The big problem, consumer spending.

It dropped off up just 1 percent and that's the slowest rate in three years. Higher energy prices were partly to blame for this spending slow down -- Fredricka.

WHITFIELD: So Mary how are investors responding to this?

SNOW: Well, this is pretty much weighing on stocks. They are sluggish. But despite the weak GDP number and despite another jump in crude oil, prices today the market pretty much holding steady. Oil prices hitting a new record high.

This amid global supply concerns. Right now crude is up about 70 cents at $43 and 45 cents a barrel. There are also two economic reports for July that came in better than expected. That brought a bit of relief to Wall Street. The University of Michigan consumer sentiment index was revised upward and a rating on manufacturing activity in the Midwest rose sharply.

Let's take a look at the latest numbers right now the Dow Industrials down 13 points. Tech stocks, though, holding their own pushing the Nasdaq composite up half a point percent. And that is the latest from Wall Street.

Still ahead, good news for students and their parents who pay the bills. A little break on your back to school expenses. I'll tell you about it when LIVE FROM continues right after this break.

(COMMERCIAL BREAK)

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Aired July 30, 2004 - 12:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Road trip. A post-convention cross- country campaign. Will it convince undecided Americans to vote for John Kerry?
FREDRICKA WHITFIELD, CNN ANCHOR: George Bush hits the trail, rallying the faithful and relying on his record, hoping to stay in the White House.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R-ME), GOVERNMENTAL AFFAIRS CMTE.: We must act with speed, but not in haste.

(END VIDEO CLIP)

PHILLIPS: Political fast track. The 9/11 report delays summer vacations. Lawmakers in overtime to make America safer against terror.

WHITFIELD: Saddam Hussein's life behind bars. An exclusive interview with a man who knows what it has been like for the former Iraqi dictator.

From the CNN Center in Atlanta, I'm Fredricka Whitfield. Miles O'Brien is off today.

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

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I want to address these next words directly to President George W. Bush. In the weeks ahead, let's be optimists, not just opponents. Let's build unity in the American family, not angry division.

Let's honor this nation's diversity; let's respect one another. And let's never misuse, for political purposes, the most precious document in American history -- the constitution of the United States.

(END VIDEO CLIP)

PHILLIPS: And so it begins, the nominee versus the incumbent. The senator versus the president.

One convention down, one to go. Three months and three days before the presidential election.

The newly nominated Democratic contender not only hit the ground running -- after his rousing convention, he and his would-be V.P. are about to arrive at their second campaign event of the day. That's in Scranton, Pennsylvania. You'll see it live about an hour from now right here on CNN.

This was their first event on Boston Harbor.

(BEGIN VIDEO CLIP)

KERRY: And Americans are playing by the rules, but for a whole group of people -- are writing the rules for themselves, and leaving the rest of America out.

We're going to change that around. Help is on the way for the average person in this country.

(END VIDEO CLIP)

PHILLIPS: Well, the morning after Kerry's impassioned nomination acceptance speech, his running mate offered this all-American recap.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS (D) VICE PRESIDENTIAL CANDIDATE: He hit a home run last night. It cleared the green monster. Sailed past the Citgo sign. And it's headed for the White House.

(END VIDEO CLIP)

PHILLIPS: Well, between them, Kerry-Edwards plans to roll across 20-plus states, 3500 miles, in the next two weeks.

CNN's Judy Woodruff does not, but she is spending one more day on the CNN Election Express in Boston.

Judy, great to see you. This is your 15th convention...

JUDY WOODRUFF, CNN ANCHOR: Hi, Kyra.

PHILLIPS: Hello. Your 15th convention. That's amazing. As you...

WOODRUFF: Can you believe it?

PHILLIPS: No -- actually, I can. You're an -- pretty amazing woman.

But I'm curious to know -- the past three days, the past four days. How's it been for you? What have been the highlights for you?

WOODRUFF: Well, Kyra, for the first thing, at the risk of repeating what everybody else in the world has said about this convention, this is the first Democratic Convention I can remember where the party was so united, where they were on message. Not only that they were on time -- for most of the time, the convention got started when it was supposed to, it wrapped up when it was supposed to, and they generally put on a good show.

But, you know, aside from all of that, the theme coming out of this convention strong and strength -- we heard it over and over again.

And last night from the first words he spoke: I'm John Kerry and I'm reporting for duty. The nominee of this party promised strong and steady leadership for America in a time of danger, and in so doing, he drew a contrast between his vision and that of George W. Bush.

(BEGIN VIDEO CLIP)

KERRY: I will be a commander-in-chief who will never mislead us into war.

I will have a vice president who will not conduct secret meetings with polluters to rewrite our environmental laws.

I will have a secretary of defense who will listen to the advise of the military leaders, and I will appoint an attorney general who will uphold the constitution of the United States.

(END VIDEO CLIP)

WOODRUFF: But it wasn't just security, Kyra, Kerry also hit at the Bush administration on its social and family policies, if you will. I'm just quoting one line. He said it's time for those who talk about family values to value families.

So I think you can say the battle is joined. We've got 95 days until the election, and they're going to be fighting it out every step of the way.

PHILLIPS: Judy, you mentioned they were on time. John Kerry was on message. A lot of people are wondering how warm is he going to be.

Is he going to come across like a John Edwards and -- right off the top, he made the joke about being born in Aurora, Colorado and yes, this is true, in the west wing of the hospital.

WOODRUFF: Well, you know he did -- he did have some attempts at humor last night, and there's no question, Kyra, they realize they need to soften him up a little bit.

I think his daughters Vanessa and Alexandra did that well. They told stories from their childhood, they tried to make their father seem more human, if you will.

But at the same time, the campaign will tell you they know that John Kerry is never going to be hailed fellow well man (ph) -- he's not a back slapper -- he's never going to come across to the American people in a -- you know -- warm, overly warm way.

But they figure, I think, that they can make any progress on that, they're doing all right.

But we'll see how the voters respond.

PHILLIPS: All right, Judy Woodruff, live from Boston. Judy thanks so much.

WOODRUFF: Thanks, Kyra.

PHILLIPS: And you can see more of Judy, of course, on the bus and one more extra special expanded edition of INSIDE POLITICS. That's at 3 p.m. Eastern, noon Pacific, right after two big hours of LIVE FROM.

WHITFIELD For President Bush, the end of the DNC means the end of this working vacation in Crawford, Texas and that means a blitz of the quintessential battleground states, including Missouri, Michigan, and Ohio.

Bush is arriving as we speak in Grand Rapids, Michigan at Gerald R. Ford International Airport for a community college event later this afternoon.

His first stop was Springfield, Missouri, and CNN's Kathleen Koch was there.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: On this misty Missouri morning, President Bush reached out to an enthusiastic crowd of over 8,000 packed into a baseball stadium here in Springfield.

President Bush said we've been through a lot together. He said his administration had accomplished a great deal, had made much progress, but that there is still more to do.

On issues like education, health care reform, the economy, the war on terror, the president repeating over and over again what is expected to be today's mantra -- quote -- we're turning a corner and we're not turning back.

The president did reference, on numerous occasions, his opponent John Kerry, talking about the Democratic convention in Boston, saying he heard a lot of, quote, clever speeches and big promises, but the president adding that good intentions don't always translate into results.

The president pointing out that voters have a clear choice in November between he and his opponent.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There are big differences in this campaign. They're going to raise your taxes; we're not. I have a clear vision on how to win the war on terror and bring peace to the world. They somehow believe the heart and soul of America can be found in Hollywood. The heart and soul of America's found right here in Springfield, Missouri.

(END VIDEO CLIP)

KOCH: Well that August (ph) reference to John Kerry's statement earlier this month at a New York fundraiser that the entertainer's presence represented the heart and soul of America.

The Bush-Cheney campaign has turned that slogan on its head, calling this campaign swing the "heart and soul of America" tour.

Now from here, President Bush heads on to two other very important battleground states, Michigan and Ohio.

Kathleen Koch, CNN, Springfield, Missouri.

(END VIDEOTAPE)

WHITFIELD: Well, almost sure to factor somewhere in the presidential campaign equation is a budget deficit that the White House now projects at $445 billion. That's $70 billion higher than last year's, which was also a record, but it's better than the $521 billion predicted back in February.

Since the fiscal year begins October 1st, we'll know the actual figure just in time for Election Day.

PHILLIPS: Well, the presidential hopefuls aren't the only politicians working overtime today. More than a dozen senators who ordinarily would be on summer recess are instead in a Capitol Hill committee room pouring over reforms recommended by 9/11 investigators.

They're pledging to act with speed, but not in haste.

CNN's Sean Callebs is watching. Sean, what do you know?

SEAN CALLEBS, CNN CORRESPONDENT: Well, I can tell you that they've been meeting for a couple of hours now and, interestingly enough, Kyra, the 9/11 Commission chairman Tom Kean opened his remarks by thanking the Senate committee for its quick reaction to the report.

Usually lawmakers are on a summer break right now, but this year the recess is being cut short. The senate has set an October deadline for having legislation drafted in response to the urgency that came from the commission's work.

The Senate Governmental Affairs Committee says that this will -- that it is going to -- focus on two of the most sweeping recommendations, the creation of a national counter terrorism center and a new high level national intelligence director.

Committee members are reacting to criticism from those who believe the Congress is being rushed into action.

(BEGIN VIDEO CLIP)

SEN. SUSAN COLLINS (R) GOVT. AFFAIRS CHAIRWOMAN: We must act with speed, but not in haste. We must be bold, but we cannot be reckless. We must protect, not just the lives of our citizens, but also those values that make life worth living.

All terrorism involves death and destruction, but the ultimate goal of terrorists is to destroy everything that we treasure and that defines us as Americans.

(END VIDEO CLIP)

CALLEBS: Among the questions the committee is expected to address; what role will national intelligence director have in setting policy.

Traditionally, establishing policy is not within the territory of Intel officials. And, what will the intelligence director do?

Will he be the one that briefs the president? And should that individual be on the Cabinet?

How will its deputies and other related offices be structured?

(BEGIN VIDEO CLIP)

LEE HAMILTON, VICE CHMN, 9/11 COMMISSION: National intelligence director would have real authority.

He will control national intelligence program purse strings; he will have hire and fire authority over agency heads in the intelligence community.

He will control the IT. He will have real troops as the national counterterrorism center and all of the joint mission centers would report to him.

We have concluded that the intelligence community is not going to get its job done unless somebody is really in charge. That is just not the case now. And we paid the price.

(END VIDEO CLIP)

CALLEBS: Six house committees have also scheduled hearings. The first one coming a few days, August 3rd, that is the House Government Reform Committee.

Now all of this after Speaker Dennis Hastert backed off his initial response to the report. Remember, he said it was unlikely Congress would consider any recommendations this year.

The Commission members are scheduled to begin traveling the country next week. A road show to try and build more momentum for the Commission's report.

PHILLIPS: All right, Sean Callebs, live from Washington. Thanks so much.

And in just a few minutes we're going to sound out ex-Republican congressman CIA veteran and CNN contributor Bob Barr on the 9/11 reforms and the fall out. That's at about half past the hour right here on LIVE FROM.

WHITFIELD: Tense moments in Iraq. A fierce firefight in Fallujah caught on tape and the U.S. secretary of state visiting Baghdad. A roundup of developments straight ahead.

Plus, is Saddam Hussein a model prisoner? An exclusive interview with the Iraqi official who got a firsthand look at the former dictator.

And apologies and revelations in the Kobe Bryant. A live report straight ahead.

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PHILLIPS: Fighting in Fallujah. The simmering tension in the Iraqi city erupts into fierce clashes between U.S. forces and insurgents overnight.

U.S. military officials say the trouble began when a joint patrol of Marines and Iraqi troops came under attack.

They responded with artillery, tank and air fire. Thirteen Iraqis were killed, 14 were wounded. There were no U.S. casualties.

WHITFIELD: This Friday, U.S. Secretary of State Colin Powell made a surprise visit to Baghdad. It's part of a trip he's taking to the Middle East and Europe. CNN's John Vause reports.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: Amid secrecy and tight security, Colin Powell arrived at Baghdad notably wearing a bulletproof vest.

This is the third time the U.S. secretary of state has visited Baghdad. He was met by a small group of U.S. soldiers. He stayed and chatted. He was also greeted by the new U.S. ambassador, John Negroponte.

From the airport it was a quick chopper ride to the green zone, where the U.S. embassy is located. He held high-level talks today with other U.S. officials as well as Iraqi officials, notably the Iraqi president and deputy prime minister.

It was after that meeting Colin Powell held a news conference and he talked about the wave of kidnappings, mostly of foreign workers, and the impact that was having on getting international help for Iraq.

COLIN POWELL, SECRETARY OF STATE: These kinds of violent actions certainly do have a deterring effect with respect to nation's providing troops or to progress with the reconstruction effort. But we have to keep them very much in perspective. These are criminals, these are murderers, these are terrorists who are killing innocent people who have come to Iraq to help the Iraqi people to a better life.

VAUSE: He also promised to speed up the spending of U.S. funds, which are being allocated to reconstruction and job creation.

The United States has allocated more than $18 billion for that, but so far most of it has not been spent. John Vause, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: How is Saddam Hussein? The man who used to rule Iraq with an iron fist is now awaiting trial with some of his henchmen.

Well, the world got its first glimpse of him in months when he appeared in court in July and there's been a lot of speculation about his health and living conditions before and since then.

Now we're getting a firsthand account from Iraq's human rights minister. It's a CNN exclusive.

(BEGIN VIDEOTAPE)

BAKHTIAR AMIN, IRAQI HUMAN RIGHTS MINISTER: Well, I visited the camp Kopa (ph) last Saturday and there are 96 prisoners there.

Saddam is one of them. And he's isolated from the others. He's not mingling with the others. And he's in a three by four meters room.

It's white, taupe floor, with a 100-volt bulb lamp. Was wearing dishdasha, an Arab robe, a purple-ish -- a purple-greenish color. He had a -- plastic sandals.

And reading glasses, a book in his hand. He goes out of his cell three hours per day. And he goes over to a yard, which is next to his room, and behind it there are Turkish latrines, clean.

He has become a gardener these days. I don't know, maybe he had a bad conscious for having decapitated hundreds of thousands of palm trees and permitted world's biggest ecocide of the 20th century.

(END VIDEOTAPE)

PHILLIPS: Interesting. Well, the minister says Hussein has a monthly medical screening and is in good health. He also says that a, quote, shrink is available to the prisoners but Hussein hasn't requested a consultation.

It's time to start the clock ticking on the government of Sudan. Those are the words of the U.S. ambassador to the United Nations.

He spoke after the U.S. Security Council today adopted a resolution demanding that Sudan reign in Arab militants. They'd been blamed for atrocities in the Darfur region. Human rights groups say as many as 30,000 civilians have been killed. More than 1 million people have also been left homeless.

Many of them have fled to the neighboring country of Chad. Aid groups are giving out emergency supplies of food and blankets to the thousands of people stuck outside in an overcrowded camp.

WHITFIELD: Well, now to the Kobe Bryant case. The basketball star is back in court today. He's attending one of the final two hearings before his trial begins next month and the judge in his sexual assault case is apologizing today.

CNN's Adrian Baschuk joins us now from Eagle, Colorado with apologies for some slipups and the accusers name not once, not twice, but maybe three times, Adrian?

ADRIAN BASCHUK, CNN CORRESPONDENT: Absolutely. Those three occasions came first in -- last September when the court accidentally published the name of the accuser on line.

Secondly just a few weeks ago -- just a month back when the court accidentally e-mailed transcripts, sealed transcripts of proceedings about the rape shield hearings to seven media organizations.

And then just this week when they again mistakenly published her name on the court Web site and a sealed order.

Now the judge expressing his sincere apology to the people of Eagle County, the people of Colorado and to those who have come from far away for the mistakes made by the court this week.

He went on to say, quote, I can only assure you that I have learned lessons from these mistakes and that we will give our best human effort to not let it happen again.

Now proceedings were supposed to be half open and half closed today but just after 30 minutes court closed down to the public and Kobe Bryant went behind closed doors.

(BEGIN VIDEOTAPE)

BASCHUK (voice-over): Kobe Bryant arrives to an Eagle County courtroom in controversy. Late yesterday, under pressure from the United States Supreme Court, Judge Terry Ruckriegle released 19 pages of sealed transcripts accidentally sent to media organizations in June.

They detailed charges by the defense that the accuser received $17,000 from the state's victim's compensation fund.

Bryant's attorneys saying this money was an incentive for the woman to lie about her encounter with the NBA star.

Victim advocates say the cap for compensation is $20,000 and is not a moneymaker for alleged victims. CYNTHIA STONE, COALITION AGAINST SEXUAL ASSAULT: No one has ever made money off the victim compensation fund. All it is -- it's a reimbursement for some of the hard costs.

BASCHUK: And Wednesday, court officials again accidentally released confidential information about Kobe Bryant's physical exam and revealed the alleged victim's name. Her attorney, John Clune told CNN in a phone interview his client, quote, does not trust the judge and the court and she has no reason to at this point.

Legal analysts believe the gaffe can fuel a settlement.

CRAIG SILVERMAN, FORMER DENVER DEPUTY D.A.: This way it puts a lot of pressure on everybody. I would not be surprised if there was some kind of global settlement, civil and criminal at the same time.

BASCHUK: Prosecutors denied such speculation earlier this week, saying the accuser will move forward to trial.

(END VIDEOTAPE)

BASCHUK: The alleged victim and her family wanted a personal and direct apology from Judge Terry Ruckriegle but as you heard it was far more general in scope. We spoke to John Clune, the personal attorney of the accuser in this case, and he told CNN, quote, in response to that apology today's self-serving remarks designed to improve his own image are insulting -- Fredricka.

WHITFIELD: Now, Adrian, aren't some advocates of the accuser saying that that $17,000 -- much of that money -- has been used to take care of any kind of physical or mental health care or counseling costs?

BASCHUK: That's where the bulk of the monies have gone to mental health counseling. They say of course Pamela Mackey debated this $17,000 that the accuser has received.

It doesn't come from taxpayer money. These are generated by fines of both convicted felons, traffic fines. She told the judge that the fines -- that the compensation should only be up to $1,125 but as you saw in that report, the tap in the limit is $20,000 and she is well within the bounds.

WHITFIELD: Adrian Baschuk, thanks very much.

Well, justice comes to Gitmo. Some of the detainees held at the U.S. Navy base will soon get their day in court, apparently. We're live from the Pentagon.

Assessing the damage and cleanup of the mess. The latest on the Dallas deluge straight ahead.

UNIDENTIFIED FEMALE: I'm a Mom rocker. It's a whole new genre.

WHITFIELD: From the downbeat of diaper rash to the soul of soggy spaghetti, these moms are singing their blues on the road. (COMMERCIAL BREAK)

PHILLIPS: News across America now. We start in Nashville, Tennessee -- that's where one person is killed, six others hurt in a scaffolding collapse. It happened this morning near Vanderbilt University during construction of an apartment building. Some of those injured fell six stories.

Now to Redwood City, Florida -- or California, rather for the third time the judge in the Scott Peterson case has denied a defense motion to declare a mistrial.

Peterson's attorney, Mark Geragos, argued a witness for the prosecution lied on the witness stand. He also asked for charges to be dismissed.

The judge denied that request, too. That trial will resume on Monday.

Elsewhere in California police in Irvine have interviewed a possible witness in the tainted baby food case. A spokesperson for the Orange County district attorney's office says that Charles Dewey Cage is not in custody and is not being called a suspect but the case involves three jars of Gerber baby food contaminated with ground up castor beans. They can be processed, as you know into the poison, Ricin.

WHITFIELD: Well, numbers out today show the economy is slowing down. Mary Snow joins us live from the New York Stock Exchange with details on that. Hi, Mary.

MARY SNOW, FINANCIAL NEWS: Hi, there, Fredricka.

Yes, in the latest polls on the second quarter shows that growth cooled. And it's cooled pretty dramatically. Gross domestic product, the broadest measure of the economy grew by a modest 3 percent, weaker than economists were expecting and also it's much smaller -- slower than the revised 4.5 percent growth rate in the first quarter.

The big problem, consumer spending.

It dropped off up just 1 percent and that's the slowest rate in three years. Higher energy prices were partly to blame for this spending slow down -- Fredricka.

WHITFIELD: So Mary how are investors responding to this?

SNOW: Well, this is pretty much weighing on stocks. They are sluggish. But despite the weak GDP number and despite another jump in crude oil, prices today the market pretty much holding steady. Oil prices hitting a new record high.

This amid global supply concerns. Right now crude is up about 70 cents at $43 and 45 cents a barrel. There are also two economic reports for July that came in better than expected. That brought a bit of relief to Wall Street. The University of Michigan consumer sentiment index was revised upward and a rating on manufacturing activity in the Midwest rose sharply.

Let's take a look at the latest numbers right now the Dow Industrials down 13 points. Tech stocks, though, holding their own pushing the Nasdaq composite up half a point percent. And that is the latest from Wall Street.

Still ahead, good news for students and their parents who pay the bills. A little break on your back to school expenses. I'll tell you about it when LIVE FROM continues right after this break.

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