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American & Iraqi Forces Prepare for Major Assault in Najaf; Amber Frey Testifies about Peterson Lies

Aired August 11, 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.


MILES O'BRIEN, CNN ANCHOR: The other woman, back on the stand. Amber Frey testifies about a string of lies in the Scott Peterson murder trial.
FREDRICKA WHITFIELD, CNN ANCHOR: Last stand in a holy city. American and Iraqi forces prepare for a major assault while a defiant cleric vows to fight to the death.

O'BRIEN: Harmless home movies or tools of terror? This man's videos gets repeat viewing from law enforcement in several American cities.

WHITFIELD: Bracing for a one-two punch. Two big storms getting stronger and threatening the U.S. mainland.

From the CNN center in Atlanta, I'm Fredricka Whitfield, in today for Kyra Phillips.

O'BRIEN: And I'm Miles O'Brien. CNN'S "LIVE FROM" begins right now.

WHITFIELD: Getting ready to fight -- or finishing the fight, rather -- in Najaf. Thousands of U.S. Marines and Iraqi forces have massed around an ancient cemetery and a holy shrine. A major assault in the planning, just one option to ending an increasingly violent standoff.

The followers of radical Shiite cleric Muqtada al-Sadr. Joining us now from Najaf is Major David Holahan. He joins us from there now.

Major, if you can give us a sense as to what is the U.S. role in this battle along with Iraqi forces?

MAJ. DAVID HOLAHAN, U.S. MARINE CORPS: Well, the role is to rid Najaf of the militia, as President Allawi has asked us to assist the Iraqi Security Forces. And the Iraqi Security Forces themselves have continued, for the past five or six days, to battle the militia.

WHITFIELD: Well, this is the seventh day in battle -- you all are playing a secondary role, and now a senior interim government leader is asking that the U.S. back off in assisting Iraqi forces. At what point would you actually do that?

HOLAHAN: Well, you know, those -- those decisions have to be made by the generals in Baghdad. You know, quite honestly, the troops and the forces here will execute the order to come from Baghdad. We always try to achieve a political goal. We're very sensitive to the nature of the shrines, the city of peace. We understand there is enormous political implications for fighting here.

Many of the Iraqis, though, as much as they do not like the militia and do not want them here, they're torn about the damage that has been caused to their city.

So as usual -- and -- luckily for us, the military forces will answer to what the politicians want us to do.

WHITFIELD: Well, can you paint a picture for us and give us a sense as to what this battle has been like over the past week?

HOLAHAN: I'll tell you one thing for sure, after they attacked the Iraqi Security Forces and we responded to assist them, the Iraqi Security Forces that is, the militia attacked us and the -- we rapidly defended and repelled their attack and moved to their base of operations in the cemetery.

And over the course of the next 36 hours it was pretty much close range ten meter fighting. We have one platoon, the 81 Platoon -- the 81 Platoon led by Lamar Brashear (ph) and somewhere around midnight he bumped into about 30 Iraqi militiamen less than ten meters from his position -- fighting -- surrounded by thousands and thousands of crypts and tombs.

It was a grenade battle, close range. After about 30 or 40 minutes of tense fighting in the dark there were 28 dead militiamen and, unfortunately, two dead Marines, but all of that killing happened less than 30 feet.

WHITFIELD: And you mentioned that all of this battling has been taking place near a holy shrine there. Particularly near Imam Ali Shrine where apparently already the main gate there has been damaged.

What are the rules of engagement as they apply to the Iraqi forces? I know that you already said the American forces try to respect any kind of religious site.

HOLAHAN: The Iraqis themselves have no intention of inflicting any damage on that holy shrine. I think that it should be apparent to everyone in the world that there is no desire on the part of the interim government to cause damage to that shrine.

People assume that, you know, the U.S. will stay away from the shrine, not to cause damage, but -- and the unsaid assumption to the Iraqis who go in there and fight but they're just as sensitive to causing damage to that shrine as we are.

WHITFIELD: And Major, how long do you see you being there?

HOLAHAN: You know, that's a tough question to answer, but I guarantee you the Marines will do what it takes until the job is finished, so if they tell us to stay however long we will do it.

WHITFIELD: Major David Holahan, thanks very much for joining us from Najaf via videophone.

Well now, the presence in Najaf at the moment is Iraq's most influential Shiite cleric. The grand Ayatollah Ali Sistani is in London being treated for a heart condition. Doctors there reportedly are discussing whether he should undergo angioplasty.

Well, the situation in Iraqi one factor blamed for sending world oil prices to new highs. Crude oil futures hit a record $45 a gallon after a main pipeline was attacked in southern Iraq.

Experts say world oil production is stretched to the limits and some fear prices could go significantly higher. Those prices went back down again today after Saudi Arabia offered to pump extra oil if needed -- Miles.

O'BRIEN: Sex, lies and deceit. More scintillating testimony from a former mistress of an accused killer. Amber Frey is her name on the stand for a second straight day.

Her one-time lover Scott Peterson just a few feet away on trial for murdering his wife and unborn child.

Now here to bring us up to date, CNN's Rusty Dornin who has been following this trial all along. Hello, Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Miles, we sort of hit the pause mode right now they just spent about an hour in chambers as expected but they were supposed to begin at 10:00 local time and apparently a juror is caught in traffic so we're unsure when the court proceedings will begin.

Meantime, Amber Frey was once again brought into the courthouse through the underground garage under very tight security. She is currently in the courtroom sitting with her attorney Gloria Allred.

Now, meantime, yesterday she told a hushed courtroom some very intimate details about her four dates with Scott Peterson. She described him as a very charming man who gave her champagne and strawberries on the first date, roses, talked about long-term lasting relationships with her. Even took care of her child and bought gifts for her daughter.

But she also -- prosecutors are also trying to show through all this that he had a very quick relationship but it was very passionate and it was enough for a motive for murder.

Frey's attorney agrees.

(BEGIN VIDEO CLIP)

GLORIA ALLRED, ATTORNEY FOR AMBER FREY: Her testimony was very strong evidence for the prosecution in support of their theory that she was a motive for murder. He, for example, said that he lost his wife; these will be the first holidays without her. And that's before Laci ever went missing.

Now was that just a coincidence or was that premeditation for the murder of Laci?

(END VIDEO CLIP)

DORNIN: Now the defense says that, you know, they've already admitted in court that yes he was a lying and cheating husband that doesn't make him a murderer and after all it was only four dates that were involved in the relationship.

At the end of court yesterday they did play some phone conversations: New Year's Eve, which was the night that there was a candlelight vigil for Laci Peterson who'd been missing for about six days.

Scott Peterson did call Amber Frey and said he was in Paris watching fireworks at the Eiffel Tower and hanging out with his French friend Francois and Pascal from Spain. We expect to hear some more of those phone conversations; police have about eight hours of recorded conversations between the two but right now we're just waiting for one of the jurors to arrive so court proceedings can commence -- Miles.

O'BRIEN: Rusty, clarify this in my mind: he's calling saying he's in Paris when in fact his wife has been missing for a few days with a lot of media attention. And Amber Frey didn't put two and two together until later?

DORNIN: That's right. Apparently she was not watching television. The thing that made her the most suspicious, Miles, about him to begin with was the fact that he -- when he was going to Europe, supposedly, for a month he told her if she wanted to send him a note, he told her well you'll have to send it through my P.O. box in Modesto and then it will have to be forwarded.

And that's when she became suspicious, but it wasn't until December 29 that a friend called her and said look, I know who this guy is -- his wife is missing; he's lying to you and that's when she called police.

O'BRIEN: And that particular friend was -- is a detective, as I understand it, correct?

DORNIN: That's right. That's right.

O'BRIEN: Very -- all right, interesting. Interesting testimony. Amazingly tangled web in such a short period of time. Rusty Dornin, thank you very much watching that trial for us.

An indefinite delay -- that is what prosecutors in Eagle, Colorado were asking for in Kobe Bryant's sexual assault trial. Prosecutors say the release of closed-door testimony has hurt their ability to get a fair trial. Just yesterday Bryant's accuser filed a civil lawsuit against the pro basketball star in a completely other -- separate jurisdiction.

We'll have more from CNN's Gary Tuchman a little later this hour for you. WHITFIELD: From Congress to New York to the Deep South. We're watching a number of developments and possible developments in the war on terror.

Let's start with our Sean Callebs in Washington who's following a couple of cases, including a man with a curious video collection -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Indeed. Law enforcement sources, Fredricka, say they are now tilting away from theories that a Pakistani man detained in North Carolina videotaping the skyline may have been casing buildings for terrorist groups.

Now just a short while ago in Chicago, Homeland Security Secretary Tom Ridge said, quote, there is nothing we know today as we speak that connects him to any terrorist activities. However, authorities say they're investigation is continuing.

Thirty-five year old Kamran Shaikh who also goes by the name Kamran Akhtar is being held in federal custody. Shaikh was arrested three weeks ago after authorities spotted him taking pictures of a 60 story Bank of America headquarters in downtown Charlotte.

Now the size of the buildings in North Carolina, authorities say, videotapes in his possessions -- had buildings and transit systems in a number of Southern cities including Austin, Houston, and Dallas, Texas -- New Orleans and Atlanta.

Shaikh lives in New York. Authorities there reportedly view him as a quote, video buff. Dallas authorities say the pictures Shaikh had did not appear terribly incriminating.

(BEGIN VIDEO CLIP)

CHIEF DAVID KUNKLE, DALLAS POLICE DEPARTMENT: It was really just scanning various buildings and facilities and it didn't appear to be directed looking at any vulnerabilities of any particular buildings or access points or anything of that nature.

(END VIDEO CLIP)

CALLEBS: The affidavit also alleges Shaikh also took pictures of the Wachovia building in Charlotte, but Wachovia says it has not had offices in the skyscraper shown on the videotape in years.

Authorities contend Shaikh also took pictures of Atlanta's MARTA or rapid transportation system but MARTA says its police have looked at the tape and say Shaikh did not videotape the Atlanta transit system.

Shaikh has been charged with violating immigration laws by making false statements -- Fredricka.

WHITFIELD: And Sean, is anything being said about whether Shaikh has a history or a record of any sort? CALLEBS: At this point, there's nothing to connect him with ties to any terrorist organization. No known arrests -- just the immigration items are standing out right now. Apparently authorities want to talk to him he gave conflicting statements on his immigration status saying he had a green card when in fact he does not.

WHITFIELD: Sean Callebs in Washington thanks very much.

O'BRIEN: Let's stay in Washington move to Capitol Hill, the question of who should be in charge of the far flung multibillion dollar U.S. intelligence apparatus. More hearings today on that 9/11 Commission report which we've been telling you so much about. CNN congressional correspondent Ed Henry live now with the latest -- hello, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon Miles. That's right, there are more hearings today, two hearings in fact, one in the House Armed Services Committee, the other in the House Intelligence Committee.

That one is getting most of the attention because of two reasons -- you have the commission co-chairs from the 9/11 Commission Tom Kean and Lee Hamilton testifying about how they want Congress to implement their 41 recommendations for reform but also that intelligence committee has been chaired for the last seven years by Porter Goss who is now President Bush's pick to be the next director of the CIA.

Mr. Goss actually stepped down as chairman last night but he attended this hearing today and Lee Hamilton, one of those Commission co-chairs had very warm words for Mr. Goss but also warned him about the challenge ahead.

(BEGIN VIDEO CLIP)

LEE HAMILTON, 9/11 COMMISSION VICE CHAIRMAN: I wish him well, and I just want to say that all of us should recognize that he takes the helm of this great agency of government at an exceedingly challenging time, when the intelligence community has been under stress and a very difficult period and we also recognize the importance to the nation of the work that that agency does so we wish him Godspeed.

(END VIDEO CLIP)

HENRY: It appears that Mr. Goss is a very good shot at being confirmed in the Senate; there has only been a little bit of criticism from Democrats so far.

Obviously, a long road ahead but so far he -- it looks like she's in fairly good shape in the Senate but it's very unclear at this point exactly how Mr. Goss if he is confirmed how he will fit in with the new national director of intelligence that the Commission is pushing for and that both presidential candidates have endorsed.

Congress still has to work out the details on exactly how that intelligence will be structured and in fact Democratic Congresswoman Jane Harman said today that she thinks Republicans on the Hill are not moving quickly to address all of these issues.

(BEGIN VIDEO CLIP)

REP. JANE HARMAN (D), CALIFORNIA: The Patriot Act was passed seven weeks -- repeat -- seven weeks after 9/11 with little debate so here's the math. Seven weeks. That's not a rush to judgment. Three years, two bipartisan commissions, 35 hearings -- that's a rush to judgment. It's not a rush to judgment to fix gaps three years after 9/11 with bipartisan ideas that have been debated for decades.

One month from today, Mr. Chairman, will be the third anniversary of 9/11. Three years is ample time for Congress to act. The time to act is now.

(END VIDEO CLIP)

HENRY: Republicans are very mindful of that upcoming anniversary, the third anniversary of the 9/11 tragedies. In fact, House Republicans are privately saying they plan to actually take legislative action either in the first or second week of September right after the Republican convention and they think that this will neutralize this issue, the 9/11 Commission's recommendations.

It will neutralize it as a political issue for Democrats if the Republicans can get this legislation passed right at the beginning of September -- Miles.

O'BRIEN: Hard to imagine politics being completely neutralized in this time but nevertheless we'll see what happens. Ed Henry will be watching it all along the way -- we appreciate it.

WHITFIELD: Requesting an indefinite delay in Eagle, Colorado. Watching today's developments mean for the Kobe Bryant case? More on that straight ahead on LIVE FROM and crushing a rebellion in Najaf. We'll talk to someone representing U.S. strategy in Iraq and we'll talk to a general straight ahead.

And it started with a meatloaf run and ended up with "60 Minutes" correspondent Mike Wallace in handcuffs. We're ordering up takeout later on LIVE FROM.

(COMMERCIAL BREAK)

O'BRIEN: Lets get back to our top story, the Iraqi city of Najaf is what we are focusing on, parts of which resemble an armed camp right now. U.S. and Iraqi forces said to be planning a major assault to end an increasingly tense standoff.

Joining us from Chicago to talk about the pitfalls in all of this is CNN military analyst retired Army General David Grange. General Grange good to see you again.

BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Same to you.

O'BRIEN: First let's begin. I want to remind people -- we talk frequently about how this is a holy city. And the center of this holy city is a mosque, which has great significance particularly for Shia Muslims of course.

Let's take a look at the picture of Muqtada al-Sadr seen in the spring of 2003 in front of the mosque which commemorates the son-in- law and cousin of the prophet Mohammed, who Shias believe should have followed in his footsteps.

He literally embodies the split between the Shias and the Sunnis. Very second place for Shiite Muslims. Looking at that right now General Grange I can't imagine a more difficult military target for its geopolitical implications.

GRANGE: Well, very delicate. It's tough, there's no doubt about it and that's why it will not be taken down unless Iraqi forces take the lead.

O'BRIEN: When you say that, Iraqi forces, does anybody really believe that Iraqi forces are calling the shots on the ground there?

GRANGE: Well, I think they are. I think...

O'BRIEN: Really?

GRANGE: I think geopolitically, like you led off the conversations they are leading the shots. However, tactically on the ground the combat phase of this is a lot of advice coming from U.S. commanders because of the experience level but there are several well- trained Iraqi units that are probably take the lead for close combat up front in the mosque itself if it happens to try to keep down collateral damage.

But U.S. is advising that effort.

O'BRIEN: And that point is a point that is not lost on the street as they say in the complete Arab world no matter what the U.S. might say and no matter what the Iraqis might say if this mosque is damaged the U.S. will be implicated. I think that's safe to say and the implications of that are tremendous, aren't they?

GRANGE: That's right, and you know you never know. Part of the mosque could be destroyed by the insurgents themselves just as you -- disinformation and blame it on U.S. forces saying it was an air strike or a helicopter or like an Apache hellfire strike or whatever the case may be.

And that's always something you have to deal with.

O'BRIEN: So in other words, you think it's likely it could be booby-trapped because it would serve their aim to make it look as if it was destroyed by U.S. forces or Iraqi forces working side by side.

GRANGE: Absolutely, because if they know they're going to be taken down and lose that would be in -- for them that would be a great tactic to use if you're going to die anyway.

O'BRIEN: All right, so that leads you some very narrow options. One option would be just to let it be. Encircle it, coordinate, continue the siege. And lay off the mosque for fear of those implications. What's the matter with that tactic?

GRANGE: Well it's pro and con -- the pro of that tactic is that it's not really starving the insurgents out; that would take obviously quite a while and they have supplies I'm sure in that area.

But it would put them on edge, you know. The U.S. and Iraqi forces going to attack me tonight? First thing the next morning? Tomorrow night?

You're on edge and you're constantly being afraid; you're nerves and so that's a good tactic. The con is that the Iraqi government may change their mind and try to negotiate a deal again which failed from the deal in April of -- at the beginning of the year.

O'BRIEN: And as long as the people inside that mosque feel that that is a possibility that really changes the way they're going to respond, doesn't it?

GRANGE: Oh of course it will and it's -- again -- it's give and take all the way. It's all about position and advantage, it's all about timing.

And it's about playing the media, playing the situation geopolitically as well as some of the fighting on the ground. But they need to go in when they can and they will decide that appropriate time and take them down once and for all.

O'BRIEN: Of course one other option is to beat a hasty retreat and declare victory.

GRANGE: No. No way.

O'BRIEN: No? All right so you think at this juncture U.S.-Iraqi forces more or less are walking down a path, which commits them to going after Sadr and his lieutenants inside that mosque.

GRANGE: I believe so and its not just the mosque of course you have at least 2,000 fighters so they're all throughout the cemetery and in the built up area and the homes and everywhere else. I believe because of what the prime minister said about using a strong hand he has no choice now but to follow through so that's why I think that they will do that.

O'BRIEN: All right we'll be watching with General David Grange. Thanks for your insights as always. Appreciate it.

GRANGE: You're welcome.

O'BRIEN: Fredricka.

WHITFIELD: Well keeping an eye on Bonnie and Charlie, two tropical storms bearing down on the U.S. mainland and they're getting stronger. We'll go live to our weather center in a few minutes.

And, politics has left which candidate has the muscle to push swing voters into their camp? We're covering the campaign trail. An urgent message from the president of the Philippines. Stop kissing me.

All that straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

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Aired August 11, 2004 - 12:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: The other woman, back on the stand. Amber Frey testifies about a string of lies in the Scott Peterson murder trial.
FREDRICKA WHITFIELD, CNN ANCHOR: Last stand in a holy city. American and Iraqi forces prepare for a major assault while a defiant cleric vows to fight to the death.

O'BRIEN: Harmless home movies or tools of terror? This man's videos gets repeat viewing from law enforcement in several American cities.

WHITFIELD: Bracing for a one-two punch. Two big storms getting stronger and threatening the U.S. mainland.

From the CNN center in Atlanta, I'm Fredricka Whitfield, in today for Kyra Phillips.

O'BRIEN: And I'm Miles O'Brien. CNN'S "LIVE FROM" begins right now.

WHITFIELD: Getting ready to fight -- or finishing the fight, rather -- in Najaf. Thousands of U.S. Marines and Iraqi forces have massed around an ancient cemetery and a holy shrine. A major assault in the planning, just one option to ending an increasingly violent standoff.

The followers of radical Shiite cleric Muqtada al-Sadr. Joining us now from Najaf is Major David Holahan. He joins us from there now.

Major, if you can give us a sense as to what is the U.S. role in this battle along with Iraqi forces?

MAJ. DAVID HOLAHAN, U.S. MARINE CORPS: Well, the role is to rid Najaf of the militia, as President Allawi has asked us to assist the Iraqi Security Forces. And the Iraqi Security Forces themselves have continued, for the past five or six days, to battle the militia.

WHITFIELD: Well, this is the seventh day in battle -- you all are playing a secondary role, and now a senior interim government leader is asking that the U.S. back off in assisting Iraqi forces. At what point would you actually do that?

HOLAHAN: Well, you know, those -- those decisions have to be made by the generals in Baghdad. You know, quite honestly, the troops and the forces here will execute the order to come from Baghdad. We always try to achieve a political goal. We're very sensitive to the nature of the shrines, the city of peace. We understand there is enormous political implications for fighting here.

Many of the Iraqis, though, as much as they do not like the militia and do not want them here, they're torn about the damage that has been caused to their city.

So as usual -- and -- luckily for us, the military forces will answer to what the politicians want us to do.

WHITFIELD: Well, can you paint a picture for us and give us a sense as to what this battle has been like over the past week?

HOLAHAN: I'll tell you one thing for sure, after they attacked the Iraqi Security Forces and we responded to assist them, the Iraqi Security Forces that is, the militia attacked us and the -- we rapidly defended and repelled their attack and moved to their base of operations in the cemetery.

And over the course of the next 36 hours it was pretty much close range ten meter fighting. We have one platoon, the 81 Platoon -- the 81 Platoon led by Lamar Brashear (ph) and somewhere around midnight he bumped into about 30 Iraqi militiamen less than ten meters from his position -- fighting -- surrounded by thousands and thousands of crypts and tombs.

It was a grenade battle, close range. After about 30 or 40 minutes of tense fighting in the dark there were 28 dead militiamen and, unfortunately, two dead Marines, but all of that killing happened less than 30 feet.

WHITFIELD: And you mentioned that all of this battling has been taking place near a holy shrine there. Particularly near Imam Ali Shrine where apparently already the main gate there has been damaged.

What are the rules of engagement as they apply to the Iraqi forces? I know that you already said the American forces try to respect any kind of religious site.

HOLAHAN: The Iraqis themselves have no intention of inflicting any damage on that holy shrine. I think that it should be apparent to everyone in the world that there is no desire on the part of the interim government to cause damage to that shrine.

People assume that, you know, the U.S. will stay away from the shrine, not to cause damage, but -- and the unsaid assumption to the Iraqis who go in there and fight but they're just as sensitive to causing damage to that shrine as we are.

WHITFIELD: And Major, how long do you see you being there?

HOLAHAN: You know, that's a tough question to answer, but I guarantee you the Marines will do what it takes until the job is finished, so if they tell us to stay however long we will do it.

WHITFIELD: Major David Holahan, thanks very much for joining us from Najaf via videophone.

Well now, the presence in Najaf at the moment is Iraq's most influential Shiite cleric. The grand Ayatollah Ali Sistani is in London being treated for a heart condition. Doctors there reportedly are discussing whether he should undergo angioplasty.

Well, the situation in Iraqi one factor blamed for sending world oil prices to new highs. Crude oil futures hit a record $45 a gallon after a main pipeline was attacked in southern Iraq.

Experts say world oil production is stretched to the limits and some fear prices could go significantly higher. Those prices went back down again today after Saudi Arabia offered to pump extra oil if needed -- Miles.

O'BRIEN: Sex, lies and deceit. More scintillating testimony from a former mistress of an accused killer. Amber Frey is her name on the stand for a second straight day.

Her one-time lover Scott Peterson just a few feet away on trial for murdering his wife and unborn child.

Now here to bring us up to date, CNN's Rusty Dornin who has been following this trial all along. Hello, Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Miles, we sort of hit the pause mode right now they just spent about an hour in chambers as expected but they were supposed to begin at 10:00 local time and apparently a juror is caught in traffic so we're unsure when the court proceedings will begin.

Meantime, Amber Frey was once again brought into the courthouse through the underground garage under very tight security. She is currently in the courtroom sitting with her attorney Gloria Allred.

Now, meantime, yesterday she told a hushed courtroom some very intimate details about her four dates with Scott Peterson. She described him as a very charming man who gave her champagne and strawberries on the first date, roses, talked about long-term lasting relationships with her. Even took care of her child and bought gifts for her daughter.

But she also -- prosecutors are also trying to show through all this that he had a very quick relationship but it was very passionate and it was enough for a motive for murder.

Frey's attorney agrees.

(BEGIN VIDEO CLIP)

GLORIA ALLRED, ATTORNEY FOR AMBER FREY: Her testimony was very strong evidence for the prosecution in support of their theory that she was a motive for murder. He, for example, said that he lost his wife; these will be the first holidays without her. And that's before Laci ever went missing.

Now was that just a coincidence or was that premeditation for the murder of Laci?

(END VIDEO CLIP)

DORNIN: Now the defense says that, you know, they've already admitted in court that yes he was a lying and cheating husband that doesn't make him a murderer and after all it was only four dates that were involved in the relationship.

At the end of court yesterday they did play some phone conversations: New Year's Eve, which was the night that there was a candlelight vigil for Laci Peterson who'd been missing for about six days.

Scott Peterson did call Amber Frey and said he was in Paris watching fireworks at the Eiffel Tower and hanging out with his French friend Francois and Pascal from Spain. We expect to hear some more of those phone conversations; police have about eight hours of recorded conversations between the two but right now we're just waiting for one of the jurors to arrive so court proceedings can commence -- Miles.

O'BRIEN: Rusty, clarify this in my mind: he's calling saying he's in Paris when in fact his wife has been missing for a few days with a lot of media attention. And Amber Frey didn't put two and two together until later?

DORNIN: That's right. Apparently she was not watching television. The thing that made her the most suspicious, Miles, about him to begin with was the fact that he -- when he was going to Europe, supposedly, for a month he told her if she wanted to send him a note, he told her well you'll have to send it through my P.O. box in Modesto and then it will have to be forwarded.

And that's when she became suspicious, but it wasn't until December 29 that a friend called her and said look, I know who this guy is -- his wife is missing; he's lying to you and that's when she called police.

O'BRIEN: And that particular friend was -- is a detective, as I understand it, correct?

DORNIN: That's right. That's right.

O'BRIEN: Very -- all right, interesting. Interesting testimony. Amazingly tangled web in such a short period of time. Rusty Dornin, thank you very much watching that trial for us.

An indefinite delay -- that is what prosecutors in Eagle, Colorado were asking for in Kobe Bryant's sexual assault trial. Prosecutors say the release of closed-door testimony has hurt their ability to get a fair trial. Just yesterday Bryant's accuser filed a civil lawsuit against the pro basketball star in a completely other -- separate jurisdiction.

We'll have more from CNN's Gary Tuchman a little later this hour for you. WHITFIELD: From Congress to New York to the Deep South. We're watching a number of developments and possible developments in the war on terror.

Let's start with our Sean Callebs in Washington who's following a couple of cases, including a man with a curious video collection -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Indeed. Law enforcement sources, Fredricka, say they are now tilting away from theories that a Pakistani man detained in North Carolina videotaping the skyline may have been casing buildings for terrorist groups.

Now just a short while ago in Chicago, Homeland Security Secretary Tom Ridge said, quote, there is nothing we know today as we speak that connects him to any terrorist activities. However, authorities say they're investigation is continuing.

Thirty-five year old Kamran Shaikh who also goes by the name Kamran Akhtar is being held in federal custody. Shaikh was arrested three weeks ago after authorities spotted him taking pictures of a 60 story Bank of America headquarters in downtown Charlotte.

Now the size of the buildings in North Carolina, authorities say, videotapes in his possessions -- had buildings and transit systems in a number of Southern cities including Austin, Houston, and Dallas, Texas -- New Orleans and Atlanta.

Shaikh lives in New York. Authorities there reportedly view him as a quote, video buff. Dallas authorities say the pictures Shaikh had did not appear terribly incriminating.

(BEGIN VIDEO CLIP)

CHIEF DAVID KUNKLE, DALLAS POLICE DEPARTMENT: It was really just scanning various buildings and facilities and it didn't appear to be directed looking at any vulnerabilities of any particular buildings or access points or anything of that nature.

(END VIDEO CLIP)

CALLEBS: The affidavit also alleges Shaikh also took pictures of the Wachovia building in Charlotte, but Wachovia says it has not had offices in the skyscraper shown on the videotape in years.

Authorities contend Shaikh also took pictures of Atlanta's MARTA or rapid transportation system but MARTA says its police have looked at the tape and say Shaikh did not videotape the Atlanta transit system.

Shaikh has been charged with violating immigration laws by making false statements -- Fredricka.

WHITFIELD: And Sean, is anything being said about whether Shaikh has a history or a record of any sort? CALLEBS: At this point, there's nothing to connect him with ties to any terrorist organization. No known arrests -- just the immigration items are standing out right now. Apparently authorities want to talk to him he gave conflicting statements on his immigration status saying he had a green card when in fact he does not.

WHITFIELD: Sean Callebs in Washington thanks very much.

O'BRIEN: Let's stay in Washington move to Capitol Hill, the question of who should be in charge of the far flung multibillion dollar U.S. intelligence apparatus. More hearings today on that 9/11 Commission report which we've been telling you so much about. CNN congressional correspondent Ed Henry live now with the latest -- hello, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon Miles. That's right, there are more hearings today, two hearings in fact, one in the House Armed Services Committee, the other in the House Intelligence Committee.

That one is getting most of the attention because of two reasons -- you have the commission co-chairs from the 9/11 Commission Tom Kean and Lee Hamilton testifying about how they want Congress to implement their 41 recommendations for reform but also that intelligence committee has been chaired for the last seven years by Porter Goss who is now President Bush's pick to be the next director of the CIA.

Mr. Goss actually stepped down as chairman last night but he attended this hearing today and Lee Hamilton, one of those Commission co-chairs had very warm words for Mr. Goss but also warned him about the challenge ahead.

(BEGIN VIDEO CLIP)

LEE HAMILTON, 9/11 COMMISSION VICE CHAIRMAN: I wish him well, and I just want to say that all of us should recognize that he takes the helm of this great agency of government at an exceedingly challenging time, when the intelligence community has been under stress and a very difficult period and we also recognize the importance to the nation of the work that that agency does so we wish him Godspeed.

(END VIDEO CLIP)

HENRY: It appears that Mr. Goss is a very good shot at being confirmed in the Senate; there has only been a little bit of criticism from Democrats so far.

Obviously, a long road ahead but so far he -- it looks like she's in fairly good shape in the Senate but it's very unclear at this point exactly how Mr. Goss if he is confirmed how he will fit in with the new national director of intelligence that the Commission is pushing for and that both presidential candidates have endorsed.

Congress still has to work out the details on exactly how that intelligence will be structured and in fact Democratic Congresswoman Jane Harman said today that she thinks Republicans on the Hill are not moving quickly to address all of these issues.

(BEGIN VIDEO CLIP)

REP. JANE HARMAN (D), CALIFORNIA: The Patriot Act was passed seven weeks -- repeat -- seven weeks after 9/11 with little debate so here's the math. Seven weeks. That's not a rush to judgment. Three years, two bipartisan commissions, 35 hearings -- that's a rush to judgment. It's not a rush to judgment to fix gaps three years after 9/11 with bipartisan ideas that have been debated for decades.

One month from today, Mr. Chairman, will be the third anniversary of 9/11. Three years is ample time for Congress to act. The time to act is now.

(END VIDEO CLIP)

HENRY: Republicans are very mindful of that upcoming anniversary, the third anniversary of the 9/11 tragedies. In fact, House Republicans are privately saying they plan to actually take legislative action either in the first or second week of September right after the Republican convention and they think that this will neutralize this issue, the 9/11 Commission's recommendations.

It will neutralize it as a political issue for Democrats if the Republicans can get this legislation passed right at the beginning of September -- Miles.

O'BRIEN: Hard to imagine politics being completely neutralized in this time but nevertheless we'll see what happens. Ed Henry will be watching it all along the way -- we appreciate it.

WHITFIELD: Requesting an indefinite delay in Eagle, Colorado. Watching today's developments mean for the Kobe Bryant case? More on that straight ahead on LIVE FROM and crushing a rebellion in Najaf. We'll talk to someone representing U.S. strategy in Iraq and we'll talk to a general straight ahead.

And it started with a meatloaf run and ended up with "60 Minutes" correspondent Mike Wallace in handcuffs. We're ordering up takeout later on LIVE FROM.

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O'BRIEN: Lets get back to our top story, the Iraqi city of Najaf is what we are focusing on, parts of which resemble an armed camp right now. U.S. and Iraqi forces said to be planning a major assault to end an increasingly tense standoff.

Joining us from Chicago to talk about the pitfalls in all of this is CNN military analyst retired Army General David Grange. General Grange good to see you again.

BRIG. GEN. DAVID GRANGE, CNN MILITARY ANALYST: Same to you.

O'BRIEN: First let's begin. I want to remind people -- we talk frequently about how this is a holy city. And the center of this holy city is a mosque, which has great significance particularly for Shia Muslims of course.

Let's take a look at the picture of Muqtada al-Sadr seen in the spring of 2003 in front of the mosque which commemorates the son-in- law and cousin of the prophet Mohammed, who Shias believe should have followed in his footsteps.

He literally embodies the split between the Shias and the Sunnis. Very second place for Shiite Muslims. Looking at that right now General Grange I can't imagine a more difficult military target for its geopolitical implications.

GRANGE: Well, very delicate. It's tough, there's no doubt about it and that's why it will not be taken down unless Iraqi forces take the lead.

O'BRIEN: When you say that, Iraqi forces, does anybody really believe that Iraqi forces are calling the shots on the ground there?

GRANGE: Well, I think they are. I think...

O'BRIEN: Really?

GRANGE: I think geopolitically, like you led off the conversations they are leading the shots. However, tactically on the ground the combat phase of this is a lot of advice coming from U.S. commanders because of the experience level but there are several well- trained Iraqi units that are probably take the lead for close combat up front in the mosque itself if it happens to try to keep down collateral damage.

But U.S. is advising that effort.

O'BRIEN: And that point is a point that is not lost on the street as they say in the complete Arab world no matter what the U.S. might say and no matter what the Iraqis might say if this mosque is damaged the U.S. will be implicated. I think that's safe to say and the implications of that are tremendous, aren't they?

GRANGE: That's right, and you know you never know. Part of the mosque could be destroyed by the insurgents themselves just as you -- disinformation and blame it on U.S. forces saying it was an air strike or a helicopter or like an Apache hellfire strike or whatever the case may be.

And that's always something you have to deal with.

O'BRIEN: So in other words, you think it's likely it could be booby-trapped because it would serve their aim to make it look as if it was destroyed by U.S. forces or Iraqi forces working side by side.

GRANGE: Absolutely, because if they know they're going to be taken down and lose that would be in -- for them that would be a great tactic to use if you're going to die anyway.

O'BRIEN: All right, so that leads you some very narrow options. One option would be just to let it be. Encircle it, coordinate, continue the siege. And lay off the mosque for fear of those implications. What's the matter with that tactic?

GRANGE: Well it's pro and con -- the pro of that tactic is that it's not really starving the insurgents out; that would take obviously quite a while and they have supplies I'm sure in that area.

But it would put them on edge, you know. The U.S. and Iraqi forces going to attack me tonight? First thing the next morning? Tomorrow night?

You're on edge and you're constantly being afraid; you're nerves and so that's a good tactic. The con is that the Iraqi government may change their mind and try to negotiate a deal again which failed from the deal in April of -- at the beginning of the year.

O'BRIEN: And as long as the people inside that mosque feel that that is a possibility that really changes the way they're going to respond, doesn't it?

GRANGE: Oh of course it will and it's -- again -- it's give and take all the way. It's all about position and advantage, it's all about timing.

And it's about playing the media, playing the situation geopolitically as well as some of the fighting on the ground. But they need to go in when they can and they will decide that appropriate time and take them down once and for all.

O'BRIEN: Of course one other option is to beat a hasty retreat and declare victory.

GRANGE: No. No way.

O'BRIEN: No? All right so you think at this juncture U.S.-Iraqi forces more or less are walking down a path, which commits them to going after Sadr and his lieutenants inside that mosque.

GRANGE: I believe so and its not just the mosque of course you have at least 2,000 fighters so they're all throughout the cemetery and in the built up area and the homes and everywhere else. I believe because of what the prime minister said about using a strong hand he has no choice now but to follow through so that's why I think that they will do that.

O'BRIEN: All right we'll be watching with General David Grange. Thanks for your insights as always. Appreciate it.

GRANGE: You're welcome.

O'BRIEN: Fredricka.

WHITFIELD: Well keeping an eye on Bonnie and Charlie, two tropical storms bearing down on the U.S. mainland and they're getting stronger. We'll go live to our weather center in a few minutes.

And, politics has left which candidate has the muscle to push swing voters into their camp? We're covering the campaign trail. An urgent message from the president of the Philippines. Stop kissing me.

All that straight ahead on LIVE FROM.

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