Return to Transcripts main page

Live From...

Military, Intelligence Officials Defend Raising Alert Level; Bryant Victim May Drop Case; Mary Kay Letourneau Released From Prison; Olympic Wrestler Tela O'Donnell Profile

Aired August 04, 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.


KYRA PHILLIPS, CNN ANCHOR: Strategizing with Osama bin Laden? The man behind deadly attacks in Iraq apparently trying to contact the al Qaeda leader.
Up in the air: Word that the accuser in the Kobe Bryant case may drop out. We're live with the new developments.

Drastic delays calling for drastic measures. A busy airport could be forced to cut flights to keep the rest of America on time.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is off. CNN's LIVE FROM starts right now.

Pakistan to Britain, Iraq to who knows where, al Qaeda's communications online and otherwise are in the crosshairs of counterterrorism agents in Pakistan, Britain, and the U.S. And they have numerous arrests to show for it. We'll get to those in a moment.

And in new attempts by terror instigator Abu Musab al-Zarqawi, somewhere in Iraq to reach out to Osama bin Laden. Up first, intelligence potentially pointing to recent terror plotting inside the U.S.

CNN's Barbara Starr has the latest now from the Pentagon -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Hello to you, Kyra. Well, military and intelligence officials are saying there was justification to raise the alert level in the United States over the weekend to orange for those financial centers in New York City, Newark, New Jersey, and Washington, D.C.

There's been an awful lot of commentary, as everyone knows, that some of that information, the reconnaissance and surveillance information of those targets, dated back to before the 9/11 attacks. That information came on a computer seized when the United States arrested a man in Pakistan a few days ago and looked at his computer and found that he was an essential communications note in the al Qaeda network with some 500 images on his computer.

But that, officials say, was not the sole reason that information on that computer not the sole reason for raising the alert level to orange. While some of that information was old, intelligence officials say they have continuing recent streams of corroborating intelligence that have come in within recent days about al Qaeda plans for some sort of an attack inside the United States.

They say this recent information comes from human sources, electronic information and documentary sources. So, officials say when they put the whole picture together, they felt that there was complete justification for code orange, that there was recent information corroborating what had already existed indicating that al Qaeda had the pieces to assemble some sort of attack.

But still, Kyra, very importantly, no timeline. No one knows when al Qaeda might be planning to strike if indeed they are -- Kyra.

PHILLIPS: Barbara OK, from intel to calm, let's talk about this reaching out by Abu al-Zarqawi to Osama bin Laden. What more do you know about that?

STARR: This is a bit of a mystery, but Defense -- Pentagon officials say that there is recent credible intelligence in the last couple of weeks that Abu Musab al-Zarqawi, the Jordanian terrorist that is believed to be leading much of the insurgency inside Iraq was making an effort to reach out to Osama bin Laden.

Most likely, through intermediaries of some sort trying to reach bin Laden to discuss, shall we say, the state of the insurgency inside Iraq. No clear word, Kyra about whether Zarqawi ever did reach bin Laden.

Of course nobody really has a street address for Osama bin Laden, so we really don't know how that all sorted out, but it is something that the intelligence community is keeping an eye on -- Kyra.

PHILLIPS: If we had a street address of Osama bin Laden, obviously we would know where he was.

Barbara Starr, live from the Pentagon, thank you so much.

Well, now to London where Scotland Yard is questioning a dozen suspects rounded up yesterday in raids across Britain. The yard says it was a pre-planned, ongoing intelligence-led operation.

But senior intel officials of Pakistan say it stemmed from their arrest July 13 of the al Qaeda computer whiz, whose hard drive helped spawn a high alert in New York, north Jersey and Washington.

Pakistanis say that Naeem Noor Khan told them that he communicated frequently with the leader of the U.K. al Qaeda network.

The big names are no shows, but politics is front and center at hearings on the U.S. streamlining rather the U.S. intelligence network.

CNN's Ed Henry, of course, is there. Bring us up to date, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Kyra. The bottom line here is that these Congressional hearing started off on a very bipartisan tone but that tone is being tested severely today. House Intelligence Chairman Porter Goss scheduled a hearing for this morning. It's been ongoing all day to take a close look at the 9/11 Commission's final report. Tom Kean and Lee Hamilton were expected to be there -- they did not show up and that has sparked a war of words.

A staffer for Mr. Goss told CNN a little earlier that they were expecting Mr. Kean and Mr. Hamilton to be there. This staffer said, quote, "This is serious business, so what are they all doing that is more important than providing testimony?"

But a spokesman for the 9/11 Commission, Al Felzenberg, told CNN that in fact Mr. Kean and Mr. Hamilton had never agreed to show up today, that in fact they a couple of days ago agreed to go next week on August 11th. There was some sort of confusion, but he said that they were not snubbing the committee and in fact they planned to reach out to the intelligence committee and all of the various committees.

Obviously, there was about a dozen committees in the House and Senate in various ways they are taking a look at this 9/11 Commission report studying what recommendations for reform they should follow up on.

But the bottom line is that there has been some partisan tension today because of the fact that those commission co-chairs were not here and Democratic ranking member Jane Harman on the House Intelligence Committee said she's tired of all these hearings.

(BEGIN VIDEO CLIP)

REP. JANE HARMAN (D), INTELLIGENCE COMMITTEE: So why isn't our committee moving faster? As we all know, our intelligence community was created in 1947 to fight an enemy that no longer exists. Put another way, we are using a 1947 business model to confront a 21st century threat.

(END VIDEO CLIP)

HENRY: But Republican Congressman Sherry Boehlert said that he believes some people want to move a little too fast. He was trying to put the breaks on here and said that instead Congress should go at their own pace.

(BEGIN VIDEO CLIP)

REP. SHERWOOD BOEHLERT (R), INTELLIGENCE COMMITTEE: Some people around the country, understandably, want us to rush to judgment -- do it instantly.

You've got an excellent report, hard work, dedicated Americans, bipartisan basis, following on the report that we did on a bipartisan, bicameral basis and people say we've got all the answers to all the questions now, let's go forward instantly. Reconvene Congress tomorrow, pass it, and our problems are solved. That's not the way it works.

(END VIDEOTAPE)

HENRY: Staffers on the 9/11 Commission say that Mr. Kean, Mr. Hamilton had previous engagements this week. It's been known for a long time that they were going to be unavailable and the bottom line is that they want to cooperate with Congress as much as possible providing testimony.

In fact, they will be here next week meeting with House Democrats. They are also going to be appearing at various hearings throughout the month of August when Congress is normally on vacation and also 9/11 Commissioners are now fanning out across the country in order to try to rally support from the general public for their recommendations for reform, Kyra.

PHILLIPS: All right, Ed Henry. live from Capitol Hill, thank you so much.

Now, we want to take you live to Davenport, Iowa. Very interesting campaigning going on just blocks away from each other -- you've got President Bush and John Kerry working the same citizens I guess you could say in the same area. Why?

Well, right now polls are showing these two are in a dead heat, maybe President Bush up a teeny bit but this is a very important state because a lot of voters just don't know which was they're going to vote right now.

So, these two -- President Bush and presidential candidate John Kerry -- trying to get those swing voters, obviously, on each side of the camp. We're going to talk more about this battleground state with Ken Rudin from NPR later in the hour.

Now if you've recently flown in or out of Chicago's O'Hare International Airport, chances are you've been a bit delayed and with the way the aviation system works a delay there means delays everywhere.

Today, the FAA is doing something about it. Our Kathleen Koch is standing by in Washington to tell us more. Kathleen.

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: Kyra, the FAA has convened an emergency meeting here in Washington with 15 airlines that fly in and out of Chicago O'Hare because as you pointed out a delay at a major hub like that simply ripples across the entire aviation system, slowing traffic nationwide.

Despite cuts, though, that were made earlier this year in the schedules of the two major airlines flying out of Chicago, American and United, the delays just keep worsening.

A record 58,600 so far this year. It's an amount that federal officials call unacceptable.

(BEGIN VIDEO CLIP)

NORMAN MINETA, TRANSPORTATION SECRETARY: The serious congestion at Chicago O'Hare looms overhead like a dark cloud, casting a threatening shadow on the recovery and we cannot and we will not allow this critical hub to become a choking point that stalls the economy and drives passengers away.

MARION BLAKEY, FAA ADMINISTRATOR: No one wants a repeat of the summer of 2000. The airlines are going to have to step up to the plate. You can't control the weather, but you can control your schedules. And that needs to start happening right away.

(END VIDEO CLIP)

KOCH: What the FAA is proposing specifically is limiting arrivals at Chicago O'Hare to 86 per hour. Right now between 78 and 101 flights land there every hour. Now federal officials hope to get all of the airlines to agree to sign on to that by August 11 with the scheduled cut being put into place by November.

And it wouldn't only be temporary, lasting for just six months. Kyra, basically officials want to see whether or not that helps or whether more drastic steps will be needed.

PHILLIPS: All right, we'll wait and see. Kathleen Koch live from Washington. Thank you.

Well, the State Department is reminding Americans to forego travel to Israel, Gaza, and the West Bank if at all possible. An update to a travel warning posted in April cities last week the kidnapping of a U.S. citizen in the West Bank. Well, that person and two others were freed reportedly after Palestinian officials promised to pay off the kidnappers.

The Iraqi city of Mosul is under curfew this hour after many hours of firefights in the streets. At least a dozen Iraqis are dead in what regional officials are calling terrorist attacks. An attempted sabotage of government buildings. Officials there say that Iraqi police and National Guard troops stabilized that situation and the curfew we're told could be lifted tomorrow.

Four Jordanian truck drivers kidnapped in Iraq last week are home today. The same day their captors had threatened to start beheading them. One of the victim's brothers credits the happy ending to the intervention of a tribal chief in Fallujah. Apparently no ransom was paid.

New developments in the Kobe Bryant case. Our Gary Tuchman is here. Will the accuser continue to cooperate with the criminal prosecution in the case? That's just ahead.

KIMBERLY OSIAS, CNN CORRESPONDENT: He was 13 and a sixth grader. She was 34 and his teacher. The illicit relationship between Mary Kay Letourneau and Vili Fualaau made headlines all over the country and today; she's out of jail and free.

I'm Kimberly Osias live and in Carver. Coming up: What happens next?

PHILLIPS: And to the mat next. Top Olympic wrestler says, hey, I'm just one of the girls.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: New developments quickly unfolding in the Kobe Bryant rape case. Our Gary Tuchman here to tell us more. You surprised?

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: I'm surprised, but in the legal world if you are surprised you are naive so maybe I shouldn't be surprised. The trial is scheduled to start three-and-a- half weeks from now.

However, it may not ever start. That is because one of the attorneys for the alleged victim in the case, John Clune, has told me today that her participation, this 20-year-old woman in the trial right now is quote, "up in the air" -- it is difficult to proceed with this case because she has, quote, "lost faith in the court system."

Why has she lost faith in the court system? The reason, he says, is because on three occasions, including last week the court accidentally released her name and information on the court Web site and in e-mails to reporters.

Therefore, John Clune is saying that no decision has been made yet, but they will make a decision within seven to 10 days. And there is a possibility she may not proceed with the criminal case. Now does that mean the criminal case won't happen?

The fact is legally prosecutors can still continue with it. They don't need her permission to go ahead with it but practically speaking it makes it very hard to do if she doesn't testify.

We will tell you, Kyra, this is very important information. We have talked to a spokeswoman for the prosecution, Krista Flannigan, and she tells us just minutes ago that we have no indications this trial will not proceed forward after conversations with Mr. Clune and the victim. That's her quote.

They said they've talked to these people and that they have every intention of going forward with the case and that the important thing to point out just a week-and-a-half ago 1,000 summons were sent out to prospective jurors.

You can't, as a prosecutor, go on television, go on the radio right now and say well there's a chance we might not do this with jurors getting ready to go. But the fact is, that they are looking into this possibility of not proceeding with the case because of what's going on.

PHILLIPS: All right, so now the alleged rape victim saying she may drop the charges, because she doesn't have faith in the system but it -- there's also a possibility there's just not enough evidence for this case to go forward in a strong manner. TUCHMAN: You can be sure that Kobe Bryant's attorneys if they were talking, and that's an important thing to point out. John Clune talks to us despite the fact that there's a gag order in this case, he's really not supposed to talk to us, he's been very angry with these mistakes that have been made and that's why he has talked to us.

But Kobe Bryant's attorneys and people who are close to Kobe Bryant say the fact is there isn't a lot of evidence in this case, they say they have established and they will point out to a jury that DNA, that this woman had on her clothing and on her body when she went for her rape exam the next day had the DNA of another man, not Kobe Bryant, on it, indicating that she had sex the day after she was with Kobe Bryant.

And they say that helps show that somebody else could have caused her injuries and they say it shows that why would a woman who was raped have sex the next day?

Rape victim advocates say anything can happen after you're raped. They argue that point very strenuously. But what's important to point out is they are considering John Clune the possibility of a civil lawsuit. They may drop the criminal charges possibly but then go to a civil court and pursue a civil suit, whole different standard of proof. In a criminal case you need to have proof beyond a reasonable doubt. In a civil court it's the preponderance of the evidence.

It's like a scale; the scale goes down this far. That's the side that wins. If the scale goes down this far and that's the side that wins. Easier standard of proof but nobody goes to jail and that's an important point that Jeffrey Toobin our legal analyst brought out before. For Kobe Bryant if this case is dropped, it's basically as they say in Monopoly a get out of jail free card.

PHILLIPS: And then, if it moves on to a civil case, it's very possible we could hear from Kobe Bryant and this woman -- there -- we could start seeing interviews.

TUCHMAN: It -- there's no question about it. It's very possible. The fact is, this woman who's name we know but who's name we do not report as part of our traditions here at a respectable journalism outlets has not appeared on television yet but it's very likely that down the road she will.

PHILLIPS: All right, we'll talk more at 2:00?

TUCHMAN: We will.

PHILLIPS: Thanks, Gary.

Well, a plea deal is reached in last year's deadly ferry crash off Staten Island. You may remember this story. The pilot who was at the helm of the ferry has pleaded guilty to 11 counts of manslaughter. Richard Smith also pleaded guilty to lying about his medical history.

As part of the agreement, Smith admitted that he was taking medication, which caused him to lose consciousness at the time of the crash. Eleven commuters were killed in that accident. Smith faces as long as three-and-a-half years in prison now and we expect to hear from the victim's families later today.

Out of prison, but not out of the spotlight: Mary Kay Letourneau, the grade school teacher convicted of rape after a long affair with a sixth grade student has been freed.

CNN's Kimberly Osias is live outside the prison in Carver, Washington, with all the details -- Kimberly.

OSIAS: Hello, Kyra. Well, hardly is she out of the spotlight. In fact they tried to sort of dim the media attention by bringing Mary Kay Letourneau out for her first steps of freedom in seven years under the cloud of darkness around 1:00 a.m. but that certainly didn't diminish it.

You know, this is a case that is certainly caused a lot of controversy and a lot of headlines and it hasn't diminished at all just yet.

(BEGIN VIDEOTAPE)

OSIAS: Vili Fualaau was a sixth grader from a broken home. Mary Kay Letourneau was his teacher, a married mother of four, a Congressman's daughter who by many accounts defied sensibilities and crossed what many considered sacred boundaries.

UNIDENTIFIED MALE: So many people see this as a love story and they want to see them together. I do want to remind people that he was 12 and 13 years old when this thing happened and his life has been profoundly impacted by what she did.

OSIAS: Pregnant by Fualaau, Mary Kay Letourneau pleaded guilty in August of 1997 to two counts of child rape. She begged a judge to give her a second chance.

MARY KAY LETOURNEAU: Your honor, I did something that I had no right to do morally or legally.

OSIAS: Right after her release following five months in jail, she defied a court order by getting together with Fualaau. The pair was spotted having sex in a van with $6,000 in their possession. Letourneau landed back in jail, pregnant with their second child. Now, after spending more than seven years in prison, Letourneau is getting out and starting again.

UNIDENTIFIED MALE: Beyond a book, beyond a movie, beyond anything like that, she's got to focus on what good she can do for the world and maybe she'll try something like the Mother's Behind Bars.

OSIAS: Letourneau now has to register as a convicted sex offender. Although there is a restraining order keeping the two apart, Fualaau is 21 now and can go to court to ask a judge to rescind the ban.

(END VIDEOTAPE) OSIAS: I just spoke with the District Attorney and they say they have no record of Vili Fualaau actually doing anything to overturn or rescind that ban as far as Mary Kay Letourneau is concerned within the next 24 hours she must go to the sheriff's office in King County, be fingerprinted, of course begin the process.

Now she will also remain under their -- under their control -- have to see them every 90 days for the next three years. Any kind of work, where she lives, even any relationship that she has at all will have to be reported to authorities -- Kyra.

PHILLIPS: Meanwhile, Kimberly, the two kids she has with this young man -- where are the kids? Who has custody? Will she be able to take them back?

OSIAS: Well, actually she has six children. She has four from her prior marriage there in Alaska. The other two that she had with Vili Fualaau they have been more frequent visitors here at the facility. Those close to Mary Kay Letourneau say that they expect that she may actually push for custody of those two girls.

PHILLIPS: Kimberly Osias, thanks so much.

Straight ahead: Is your brain wired this way?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Wednesdays are light blue. Thursdays is a dark green.

(END VIDEO CLIP)

PHILLIPS: We'll take you inside the minds of people who senses are crossed later on LIVE FROM.

And should parents be forced to buy airline tickets for babies? A move to get kids out of laps and into seats just ahead.

(COMMERCIAL BREAK)

PHILLIPS: Sweet and tough at the same time, that's the stormy combination that's led to the success for one of America's top women wrestlers.

CNN's Jason Bellini introduces us to Tela O'Donnell and her Olympic dreams.

(BEGIN VIDEOTAPE)

JASON BELLINI, CNN CORRESPONDENT: Tela O'Donnell is pure sweetness and might.

TELA O'DONNELL, U.S. OLYMPIC WRESTLER: I don't think (INAUDIBLE) you're a wrestler? They think that wrestler's might be kind of like this brutish kind of mannish girl.

BELLINI: Around O'Donnell training camp feels more like a pajama party.

On the mat, most wrestlers scowl. O'Donnell smiles.

O'Donnell was born and raised in Homer, Alaska. The singer Jewel was her babysitter.

O'DONNELL: Until maybe this spring -- she tied me from this tree. It was really cool and it swung out over and I played in it a lot.

BELLINI: She learned her first wrestling moves shearing sheep.

O'DONNELL: I didn't wrestle sheep or anything.

BELLINI: O'Donnell's mother, Clare, moved to Alaska while she was pregnant with Tela. She gave up her career as a mime in Chicago to offer her daughter the simple life.

O'DONNELL: My mom built our house, it's a log cabin and there's -- she cut down the trees.

BELLINI: While still pregnant, Clare wore a pillow to cut down the noise of the chain saw.

In high school, Tela got tired of playing football with the boys. She preferred to wrestle them. During the Olympic trials, the women didn't see her coming. No one expected her to take one of the four slots on the Olympic team.

Tela O'Donnell was considered the rookie on the team. She's never competed in a major international tournament. The Olympics will be her first.

No one knows what to expect when she goes up against the renowned Chinese and Russian female wrestlers. Her teammates are more concerned about her outside the ring.

SARA MCMANN, U.S. OLYMPIC WRESTLER: Tela has a heart of gold and we don't want anybody else to like taint that so if anybody is like trying to be mean to her or do anything we're all like we're on them like wild dogs. Don't you hurt our Tela.

O'DONNELL: I'm really emotional. But happy most of the time. Like often. I'm emotional. I'm like any other girl.

BELLINI: Like any girl who is sweet on the outside but drops pounces and pins for the fun of it. Jason Bellini, CNN, Colorado Springs, Colorado.

(END VIDEOTAPE)

PHILLIPS: I'll invest in her.

Well, a government safety watchdog wants to put an end to lap travel for kids. Mary Snow joins us live from the New York Stock Exchange with that story. Hey, Mary. MARY SNOW, FINANCIAL NEWS: Hi there, Kyra. And you know under the current rules toddlers can fly unrestrained as long as they are held in an adult's lap.

However the national Transportation Safety Board wants to impose stricter rules for air travel. The safety board wants toddlers to have their own seats on flights so they're able to wear seatbelts or be strapped in to child restraints.

Now, the Federal Aviation Administration says the move could be too costly for some and force families to take the highways instead of the skies and says that might be a more dangerous proposition.

No decision has been made so far but the safety board is pushing the FAA for a decision -- Kyra.

PHILLIPS: Solve some legal problems. Let's go on now to Wal- Mart, Mary.

SNOW: Well, Wal-Mart is reportedly negotiating a settlement with the Justice Department. "The Wall Street Journal" reporting that the investigation deals with whether the retailer knew it's store-cleaning service hired illegal immigrants.

The paper says the retailer is unlikely to admit any wrongdoing, but might end up paying a fine of $10 million. Now after the markets today, stocks continuing to slide, the main culprit once again high oil prices even though they're easing investors are concerned that high energy prices might force consumers to spend less and increase production costs.

But as you can see, the Dow right now down 43 points, the Nasdaq is down three quarters of one percent. And that is the latest from Wall Street.

Coming up later this hour: The latest in car safety might mean a black box for every car, but you might already have one and you don't know it. LIVE FROM is coming right back.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired August 4, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Strategizing with Osama bin Laden? The man behind deadly attacks in Iraq apparently trying to contact the al Qaeda leader.
Up in the air: Word that the accuser in the Kobe Bryant case may drop out. We're live with the new developments.

Drastic delays calling for drastic measures. A busy airport could be forced to cut flights to keep the rest of America on time.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is off. CNN's LIVE FROM starts right now.

Pakistan to Britain, Iraq to who knows where, al Qaeda's communications online and otherwise are in the crosshairs of counterterrorism agents in Pakistan, Britain, and the U.S. And they have numerous arrests to show for it. We'll get to those in a moment.

And in new attempts by terror instigator Abu Musab al-Zarqawi, somewhere in Iraq to reach out to Osama bin Laden. Up first, intelligence potentially pointing to recent terror plotting inside the U.S.

CNN's Barbara Starr has the latest now from the Pentagon -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Hello to you, Kyra. Well, military and intelligence officials are saying there was justification to raise the alert level in the United States over the weekend to orange for those financial centers in New York City, Newark, New Jersey, and Washington, D.C.

There's been an awful lot of commentary, as everyone knows, that some of that information, the reconnaissance and surveillance information of those targets, dated back to before the 9/11 attacks. That information came on a computer seized when the United States arrested a man in Pakistan a few days ago and looked at his computer and found that he was an essential communications note in the al Qaeda network with some 500 images on his computer.

But that, officials say, was not the sole reason that information on that computer not the sole reason for raising the alert level to orange. While some of that information was old, intelligence officials say they have continuing recent streams of corroborating intelligence that have come in within recent days about al Qaeda plans for some sort of an attack inside the United States.

They say this recent information comes from human sources, electronic information and documentary sources. So, officials say when they put the whole picture together, they felt that there was complete justification for code orange, that there was recent information corroborating what had already existed indicating that al Qaeda had the pieces to assemble some sort of attack.

But still, Kyra, very importantly, no timeline. No one knows when al Qaeda might be planning to strike if indeed they are -- Kyra.

PHILLIPS: Barbara OK, from intel to calm, let's talk about this reaching out by Abu al-Zarqawi to Osama bin Laden. What more do you know about that?

STARR: This is a bit of a mystery, but Defense -- Pentagon officials say that there is recent credible intelligence in the last couple of weeks that Abu Musab al-Zarqawi, the Jordanian terrorist that is believed to be leading much of the insurgency inside Iraq was making an effort to reach out to Osama bin Laden.

Most likely, through intermediaries of some sort trying to reach bin Laden to discuss, shall we say, the state of the insurgency inside Iraq. No clear word, Kyra about whether Zarqawi ever did reach bin Laden.

Of course nobody really has a street address for Osama bin Laden, so we really don't know how that all sorted out, but it is something that the intelligence community is keeping an eye on -- Kyra.

PHILLIPS: If we had a street address of Osama bin Laden, obviously we would know where he was.

Barbara Starr, live from the Pentagon, thank you so much.

Well, now to London where Scotland Yard is questioning a dozen suspects rounded up yesterday in raids across Britain. The yard says it was a pre-planned, ongoing intelligence-led operation.

But senior intel officials of Pakistan say it stemmed from their arrest July 13 of the al Qaeda computer whiz, whose hard drive helped spawn a high alert in New York, north Jersey and Washington.

Pakistanis say that Naeem Noor Khan told them that he communicated frequently with the leader of the U.K. al Qaeda network.

The big names are no shows, but politics is front and center at hearings on the U.S. streamlining rather the U.S. intelligence network.

CNN's Ed Henry, of course, is there. Bring us up to date, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Kyra. The bottom line here is that these Congressional hearing started off on a very bipartisan tone but that tone is being tested severely today. House Intelligence Chairman Porter Goss scheduled a hearing for this morning. It's been ongoing all day to take a close look at the 9/11 Commission's final report. Tom Kean and Lee Hamilton were expected to be there -- they did not show up and that has sparked a war of words.

A staffer for Mr. Goss told CNN a little earlier that they were expecting Mr. Kean and Mr. Hamilton to be there. This staffer said, quote, "This is serious business, so what are they all doing that is more important than providing testimony?"

But a spokesman for the 9/11 Commission, Al Felzenberg, told CNN that in fact Mr. Kean and Mr. Hamilton had never agreed to show up today, that in fact they a couple of days ago agreed to go next week on August 11th. There was some sort of confusion, but he said that they were not snubbing the committee and in fact they planned to reach out to the intelligence committee and all of the various committees.

Obviously, there was about a dozen committees in the House and Senate in various ways they are taking a look at this 9/11 Commission report studying what recommendations for reform they should follow up on.

But the bottom line is that there has been some partisan tension today because of the fact that those commission co-chairs were not here and Democratic ranking member Jane Harman on the House Intelligence Committee said she's tired of all these hearings.

(BEGIN VIDEO CLIP)

REP. JANE HARMAN (D), INTELLIGENCE COMMITTEE: So why isn't our committee moving faster? As we all know, our intelligence community was created in 1947 to fight an enemy that no longer exists. Put another way, we are using a 1947 business model to confront a 21st century threat.

(END VIDEO CLIP)

HENRY: But Republican Congressman Sherry Boehlert said that he believes some people want to move a little too fast. He was trying to put the breaks on here and said that instead Congress should go at their own pace.

(BEGIN VIDEO CLIP)

REP. SHERWOOD BOEHLERT (R), INTELLIGENCE COMMITTEE: Some people around the country, understandably, want us to rush to judgment -- do it instantly.

You've got an excellent report, hard work, dedicated Americans, bipartisan basis, following on the report that we did on a bipartisan, bicameral basis and people say we've got all the answers to all the questions now, let's go forward instantly. Reconvene Congress tomorrow, pass it, and our problems are solved. That's not the way it works.

(END VIDEOTAPE)

HENRY: Staffers on the 9/11 Commission say that Mr. Kean, Mr. Hamilton had previous engagements this week. It's been known for a long time that they were going to be unavailable and the bottom line is that they want to cooperate with Congress as much as possible providing testimony.

In fact, they will be here next week meeting with House Democrats. They are also going to be appearing at various hearings throughout the month of August when Congress is normally on vacation and also 9/11 Commissioners are now fanning out across the country in order to try to rally support from the general public for their recommendations for reform, Kyra.

PHILLIPS: All right, Ed Henry. live from Capitol Hill, thank you so much.

Now, we want to take you live to Davenport, Iowa. Very interesting campaigning going on just blocks away from each other -- you've got President Bush and John Kerry working the same citizens I guess you could say in the same area. Why?

Well, right now polls are showing these two are in a dead heat, maybe President Bush up a teeny bit but this is a very important state because a lot of voters just don't know which was they're going to vote right now.

So, these two -- President Bush and presidential candidate John Kerry -- trying to get those swing voters, obviously, on each side of the camp. We're going to talk more about this battleground state with Ken Rudin from NPR later in the hour.

Now if you've recently flown in or out of Chicago's O'Hare International Airport, chances are you've been a bit delayed and with the way the aviation system works a delay there means delays everywhere.

Today, the FAA is doing something about it. Our Kathleen Koch is standing by in Washington to tell us more. Kathleen.

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: Kyra, the FAA has convened an emergency meeting here in Washington with 15 airlines that fly in and out of Chicago O'Hare because as you pointed out a delay at a major hub like that simply ripples across the entire aviation system, slowing traffic nationwide.

Despite cuts, though, that were made earlier this year in the schedules of the two major airlines flying out of Chicago, American and United, the delays just keep worsening.

A record 58,600 so far this year. It's an amount that federal officials call unacceptable.

(BEGIN VIDEO CLIP)

NORMAN MINETA, TRANSPORTATION SECRETARY: The serious congestion at Chicago O'Hare looms overhead like a dark cloud, casting a threatening shadow on the recovery and we cannot and we will not allow this critical hub to become a choking point that stalls the economy and drives passengers away.

MARION BLAKEY, FAA ADMINISTRATOR: No one wants a repeat of the summer of 2000. The airlines are going to have to step up to the plate. You can't control the weather, but you can control your schedules. And that needs to start happening right away.

(END VIDEO CLIP)

KOCH: What the FAA is proposing specifically is limiting arrivals at Chicago O'Hare to 86 per hour. Right now between 78 and 101 flights land there every hour. Now federal officials hope to get all of the airlines to agree to sign on to that by August 11 with the scheduled cut being put into place by November.

And it wouldn't only be temporary, lasting for just six months. Kyra, basically officials want to see whether or not that helps or whether more drastic steps will be needed.

PHILLIPS: All right, we'll wait and see. Kathleen Koch live from Washington. Thank you.

Well, the State Department is reminding Americans to forego travel to Israel, Gaza, and the West Bank if at all possible. An update to a travel warning posted in April cities last week the kidnapping of a U.S. citizen in the West Bank. Well, that person and two others were freed reportedly after Palestinian officials promised to pay off the kidnappers.

The Iraqi city of Mosul is under curfew this hour after many hours of firefights in the streets. At least a dozen Iraqis are dead in what regional officials are calling terrorist attacks. An attempted sabotage of government buildings. Officials there say that Iraqi police and National Guard troops stabilized that situation and the curfew we're told could be lifted tomorrow.

Four Jordanian truck drivers kidnapped in Iraq last week are home today. The same day their captors had threatened to start beheading them. One of the victim's brothers credits the happy ending to the intervention of a tribal chief in Fallujah. Apparently no ransom was paid.

New developments in the Kobe Bryant case. Our Gary Tuchman is here. Will the accuser continue to cooperate with the criminal prosecution in the case? That's just ahead.

KIMBERLY OSIAS, CNN CORRESPONDENT: He was 13 and a sixth grader. She was 34 and his teacher. The illicit relationship between Mary Kay Letourneau and Vili Fualaau made headlines all over the country and today; she's out of jail and free.

I'm Kimberly Osias live and in Carver. Coming up: What happens next?

PHILLIPS: And to the mat next. Top Olympic wrestler says, hey, I'm just one of the girls.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: New developments quickly unfolding in the Kobe Bryant rape case. Our Gary Tuchman here to tell us more. You surprised?

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: I'm surprised, but in the legal world if you are surprised you are naive so maybe I shouldn't be surprised. The trial is scheduled to start three-and-a- half weeks from now.

However, it may not ever start. That is because one of the attorneys for the alleged victim in the case, John Clune, has told me today that her participation, this 20-year-old woman in the trial right now is quote, "up in the air" -- it is difficult to proceed with this case because she has, quote, "lost faith in the court system."

Why has she lost faith in the court system? The reason, he says, is because on three occasions, including last week the court accidentally released her name and information on the court Web site and in e-mails to reporters.

Therefore, John Clune is saying that no decision has been made yet, but they will make a decision within seven to 10 days. And there is a possibility she may not proceed with the criminal case. Now does that mean the criminal case won't happen?

The fact is legally prosecutors can still continue with it. They don't need her permission to go ahead with it but practically speaking it makes it very hard to do if she doesn't testify.

We will tell you, Kyra, this is very important information. We have talked to a spokeswoman for the prosecution, Krista Flannigan, and she tells us just minutes ago that we have no indications this trial will not proceed forward after conversations with Mr. Clune and the victim. That's her quote.

They said they've talked to these people and that they have every intention of going forward with the case and that the important thing to point out just a week-and-a-half ago 1,000 summons were sent out to prospective jurors.

You can't, as a prosecutor, go on television, go on the radio right now and say well there's a chance we might not do this with jurors getting ready to go. But the fact is, that they are looking into this possibility of not proceeding with the case because of what's going on.

PHILLIPS: All right, so now the alleged rape victim saying she may drop the charges, because she doesn't have faith in the system but it -- there's also a possibility there's just not enough evidence for this case to go forward in a strong manner. TUCHMAN: You can be sure that Kobe Bryant's attorneys if they were talking, and that's an important thing to point out. John Clune talks to us despite the fact that there's a gag order in this case, he's really not supposed to talk to us, he's been very angry with these mistakes that have been made and that's why he has talked to us.

But Kobe Bryant's attorneys and people who are close to Kobe Bryant say the fact is there isn't a lot of evidence in this case, they say they have established and they will point out to a jury that DNA, that this woman had on her clothing and on her body when she went for her rape exam the next day had the DNA of another man, not Kobe Bryant, on it, indicating that she had sex the day after she was with Kobe Bryant.

And they say that helps show that somebody else could have caused her injuries and they say it shows that why would a woman who was raped have sex the next day?

Rape victim advocates say anything can happen after you're raped. They argue that point very strenuously. But what's important to point out is they are considering John Clune the possibility of a civil lawsuit. They may drop the criminal charges possibly but then go to a civil court and pursue a civil suit, whole different standard of proof. In a criminal case you need to have proof beyond a reasonable doubt. In a civil court it's the preponderance of the evidence.

It's like a scale; the scale goes down this far. That's the side that wins. If the scale goes down this far and that's the side that wins. Easier standard of proof but nobody goes to jail and that's an important point that Jeffrey Toobin our legal analyst brought out before. For Kobe Bryant if this case is dropped, it's basically as they say in Monopoly a get out of jail free card.

PHILLIPS: And then, if it moves on to a civil case, it's very possible we could hear from Kobe Bryant and this woman -- there -- we could start seeing interviews.

TUCHMAN: It -- there's no question about it. It's very possible. The fact is, this woman who's name we know but who's name we do not report as part of our traditions here at a respectable journalism outlets has not appeared on television yet but it's very likely that down the road she will.

PHILLIPS: All right, we'll talk more at 2:00?

TUCHMAN: We will.

PHILLIPS: Thanks, Gary.

Well, a plea deal is reached in last year's deadly ferry crash off Staten Island. You may remember this story. The pilot who was at the helm of the ferry has pleaded guilty to 11 counts of manslaughter. Richard Smith also pleaded guilty to lying about his medical history.

As part of the agreement, Smith admitted that he was taking medication, which caused him to lose consciousness at the time of the crash. Eleven commuters were killed in that accident. Smith faces as long as three-and-a-half years in prison now and we expect to hear from the victim's families later today.

Out of prison, but not out of the spotlight: Mary Kay Letourneau, the grade school teacher convicted of rape after a long affair with a sixth grade student has been freed.

CNN's Kimberly Osias is live outside the prison in Carver, Washington, with all the details -- Kimberly.

OSIAS: Hello, Kyra. Well, hardly is she out of the spotlight. In fact they tried to sort of dim the media attention by bringing Mary Kay Letourneau out for her first steps of freedom in seven years under the cloud of darkness around 1:00 a.m. but that certainly didn't diminish it.

You know, this is a case that is certainly caused a lot of controversy and a lot of headlines and it hasn't diminished at all just yet.

(BEGIN VIDEOTAPE)

OSIAS: Vili Fualaau was a sixth grader from a broken home. Mary Kay Letourneau was his teacher, a married mother of four, a Congressman's daughter who by many accounts defied sensibilities and crossed what many considered sacred boundaries.

UNIDENTIFIED MALE: So many people see this as a love story and they want to see them together. I do want to remind people that he was 12 and 13 years old when this thing happened and his life has been profoundly impacted by what she did.

OSIAS: Pregnant by Fualaau, Mary Kay Letourneau pleaded guilty in August of 1997 to two counts of child rape. She begged a judge to give her a second chance.

MARY KAY LETOURNEAU: Your honor, I did something that I had no right to do morally or legally.

OSIAS: Right after her release following five months in jail, she defied a court order by getting together with Fualaau. The pair was spotted having sex in a van with $6,000 in their possession. Letourneau landed back in jail, pregnant with their second child. Now, after spending more than seven years in prison, Letourneau is getting out and starting again.

UNIDENTIFIED MALE: Beyond a book, beyond a movie, beyond anything like that, she's got to focus on what good she can do for the world and maybe she'll try something like the Mother's Behind Bars.

OSIAS: Letourneau now has to register as a convicted sex offender. Although there is a restraining order keeping the two apart, Fualaau is 21 now and can go to court to ask a judge to rescind the ban.

(END VIDEOTAPE) OSIAS: I just spoke with the District Attorney and they say they have no record of Vili Fualaau actually doing anything to overturn or rescind that ban as far as Mary Kay Letourneau is concerned within the next 24 hours she must go to the sheriff's office in King County, be fingerprinted, of course begin the process.

Now she will also remain under their -- under their control -- have to see them every 90 days for the next three years. Any kind of work, where she lives, even any relationship that she has at all will have to be reported to authorities -- Kyra.

PHILLIPS: Meanwhile, Kimberly, the two kids she has with this young man -- where are the kids? Who has custody? Will she be able to take them back?

OSIAS: Well, actually she has six children. She has four from her prior marriage there in Alaska. The other two that she had with Vili Fualaau they have been more frequent visitors here at the facility. Those close to Mary Kay Letourneau say that they expect that she may actually push for custody of those two girls.

PHILLIPS: Kimberly Osias, thanks so much.

Straight ahead: Is your brain wired this way?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Wednesdays are light blue. Thursdays is a dark green.

(END VIDEO CLIP)

PHILLIPS: We'll take you inside the minds of people who senses are crossed later on LIVE FROM.

And should parents be forced to buy airline tickets for babies? A move to get kids out of laps and into seats just ahead.

(COMMERCIAL BREAK)

PHILLIPS: Sweet and tough at the same time, that's the stormy combination that's led to the success for one of America's top women wrestlers.

CNN's Jason Bellini introduces us to Tela O'Donnell and her Olympic dreams.

(BEGIN VIDEOTAPE)

JASON BELLINI, CNN CORRESPONDENT: Tela O'Donnell is pure sweetness and might.

TELA O'DONNELL, U.S. OLYMPIC WRESTLER: I don't think (INAUDIBLE) you're a wrestler? They think that wrestler's might be kind of like this brutish kind of mannish girl.

BELLINI: Around O'Donnell training camp feels more like a pajama party.

On the mat, most wrestlers scowl. O'Donnell smiles.

O'Donnell was born and raised in Homer, Alaska. The singer Jewel was her babysitter.

O'DONNELL: Until maybe this spring -- she tied me from this tree. It was really cool and it swung out over and I played in it a lot.

BELLINI: She learned her first wrestling moves shearing sheep.

O'DONNELL: I didn't wrestle sheep or anything.

BELLINI: O'Donnell's mother, Clare, moved to Alaska while she was pregnant with Tela. She gave up her career as a mime in Chicago to offer her daughter the simple life.

O'DONNELL: My mom built our house, it's a log cabin and there's -- she cut down the trees.

BELLINI: While still pregnant, Clare wore a pillow to cut down the noise of the chain saw.

In high school, Tela got tired of playing football with the boys. She preferred to wrestle them. During the Olympic trials, the women didn't see her coming. No one expected her to take one of the four slots on the Olympic team.

Tela O'Donnell was considered the rookie on the team. She's never competed in a major international tournament. The Olympics will be her first.

No one knows what to expect when she goes up against the renowned Chinese and Russian female wrestlers. Her teammates are more concerned about her outside the ring.

SARA MCMANN, U.S. OLYMPIC WRESTLER: Tela has a heart of gold and we don't want anybody else to like taint that so if anybody is like trying to be mean to her or do anything we're all like we're on them like wild dogs. Don't you hurt our Tela.

O'DONNELL: I'm really emotional. But happy most of the time. Like often. I'm emotional. I'm like any other girl.

BELLINI: Like any girl who is sweet on the outside but drops pounces and pins for the fun of it. Jason Bellini, CNN, Colorado Springs, Colorado.

(END VIDEOTAPE)

PHILLIPS: I'll invest in her.

Well, a government safety watchdog wants to put an end to lap travel for kids. Mary Snow joins us live from the New York Stock Exchange with that story. Hey, Mary. MARY SNOW, FINANCIAL NEWS: Hi there, Kyra. And you know under the current rules toddlers can fly unrestrained as long as they are held in an adult's lap.

However the national Transportation Safety Board wants to impose stricter rules for air travel. The safety board wants toddlers to have their own seats on flights so they're able to wear seatbelts or be strapped in to child restraints.

Now, the Federal Aviation Administration says the move could be too costly for some and force families to take the highways instead of the skies and says that might be a more dangerous proposition.

No decision has been made so far but the safety board is pushing the FAA for a decision -- Kyra.

PHILLIPS: Solve some legal problems. Let's go on now to Wal- Mart, Mary.

SNOW: Well, Wal-Mart is reportedly negotiating a settlement with the Justice Department. "The Wall Street Journal" reporting that the investigation deals with whether the retailer knew it's store-cleaning service hired illegal immigrants.

The paper says the retailer is unlikely to admit any wrongdoing, but might end up paying a fine of $10 million. Now after the markets today, stocks continuing to slide, the main culprit once again high oil prices even though they're easing investors are concerned that high energy prices might force consumers to spend less and increase production costs.

But as you can see, the Dow right now down 43 points, the Nasdaq is down three quarters of one percent. And that is the latest from Wall Street.

Coming up later this hour: The latest in car safety might mean a black box for every car, but you might already have one and you don't know it. LIVE FROM is coming right back.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com