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Post-Disaster Distress; Military Shuffle; Michael Jackson Case

Aired August 16, 2004 - 13:59   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.


BETTY NGUYEN, CNN ANCHOR: We begin this hour with the stress in the wake of disaster. Survivors of Hurricane Charley getting over the shock but only beginning the torturous jobs of rebuilding. Many thousands of officials and volunteers are trying to help, but the need is overwhelming.
And we get the latest now from CNN's Ed Lavandera in the formerly quiet and picturesque Port Charlotte, Florida.

Good afternoon.

ED LAVANDERA, CNN CORRESPONDENT: Hello. Well, you know, most of the weekend we've spent in Punta Gorda, which is just across the bay. And it's interesting this town received most of the attention, but Charlotte, very -- Port Charlotte, just very close, and the destruction just as devastating.

As you can take a look here, we were speaking with the owner of this home who had taken off just before the storm hit and took shelter inland with some -- with some friends. And the house completely devastated by the storm.

And you know, it's part of the cleanup process here. In fact, the gentleman here just picked up and walked away, and he said, "Time to go find the FEMA representatives."

But you know, the residents -- most of the residents here trying to pick up the little pieces that they can. The cleanup here hampered lately today just by the heat and the humidity as many of the officials here in this area saying that many of the elderly residents in this area succumbing to a lot of heat exhaustion and not being properly hydrated. As we've mentioned, getting the food and water and supplies into this area has been the primary concern so far.

You know, one of the other issues that has happened here is that this part of Florida, of course, is well known for its citrus industry. Some $9 billion in damage estimated to that industry. But there's also a lot of people around here who just, you know, have citrus trees in their backyard.

And they have taken a lot of pride of being able to pick the fruits and, you know, kind of send them to relatives up north and that sort of thing. You know, and it's one of the sad notes is that they see all of these trees have taken such a terrible toll in this storm.

(BEGIN VIDEO CLIP) PAUL NILAND, VACATION HOME OWNER: The oranges and the tangelos and grapefruit are absolutely beautiful, the nicest you'll ever eat. But they are gone now for another year. But maybe they will come back.

(END VIDEO CLIP)

LAVANDERA: And we're back here live, showing you a little bit more of the destruction that this particular neighborhood has endured. You know, one of the things that officials here are hoping will happen is that the -- the supplies and relief and everything will continue to arrive. They say they have been very happy with the way all of that has been going so far, but they know there's a lot of work.

Help has come in from across the state. And officials here say that they have been overwhelmed. They said a lot of the help started arriving before the winds had even calmed down. And as you can see, there's a lot of work left to be done.

Back to you.

NGUYEN: Ed, with all this death and destruction out there, unfortunately some people take advantage of the situation. Has looting or price gouging become a problem?

LAVANDERA: Well, you know, we've heard some reports of that sort of thing. We've also heard some reports that, you know, tempers are flaring at gas stations and that sort of thing. But it's not as widespread.

It's nowhere near the level it was during Hurricane Andrew, where that was such a major problem. We haven't heard it that widespread. But there have been some isolated cases of looting issues.

And there's also been some cases that we've heard reports of as well, the issues having to deal with price gouging and that sort of thing. But officials say that they are very weary of that and they will be paying very close attention. And if any reports like that need to come in, that they suggest -- suggest that people call the authorities and report that kind of thing immediately.

NGUYEN: CNN's Ed Lavandera in Port Charlotte. Thank you.

Awfully hot there in Port Charlotte. Don't want to be without air-conditioning this time of year, Jacqui Jeras.

(WEATHER REPORT)

NGUYEN: All right. Jacqui Jeras, thank you.

Twenty-five federal disaster areas, thousands of unlivable homes, 11,000 applications for federal aid, and counting. The Federal Emergency Management Agency was created for scenarios just like this. And in just a few minutes, we'll talk to FEMA about the resources and the track record with former FEMA honcho James Lee Witt. That's at quarter past this hour of LIVE FROM -- Kyra. KYRA PHILLIPS, CNN ANCHOR: Also this hour, the commander-in- chief performs the military shuffle. President Bush announcing a major realignment of U.S. troops to help fight the war on terror. CNN's Elaine Quijano has that story now live from the White House -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good afternoon, Kyra.

President Bush made that announcement during a campaign appearance in Cincinnati, Ohio. He was delivering a speech before the Convention of Veterans of Foreign Wars there in Cincinnati. The president basically saying that the world has changed a great deal and said that he believes the U.S. military needs to change as well in the way it positions its forces globally.

Now, administration officials say this represents a shift away from the time when the U.S. saw the Soviet Union as the primary threat. Now the U.S. wants to focus on meeting what the administration sees as new emerging threats in the war on terror. Now, today the president also said the decision took into account the quality of life for military personnel, something critics say has suffered under his watch.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Although we'll still have a significant presence overseas, under the plan I'm announcing today over the next 10 years we will bring home about 60,000 to 70,000 uniformed personnel and about 100,000 members and civilian employees.

(END VIDEO CLIP)

QUIJANO: The president saying that he feels that the plight of military personnel is something that he very much wants to help alleviate, some of the stress they are feeling. But also, we should note administration officials are saying this will not affect -- the troop reductions will not affect any troops currently stationed in Iraq and Afghanistan. Some 140,000 American troops are stationed there.

Now, as for the speech itself, this was actually delivered within the context of a campaign event. This trip, although a major foreign policy announcement made during that speech, this trip actually sponsored by the Bush-Cheney reelection campaign. And already the political debate is ensuing.

Critics of the president, including advisors of Senator John Kerry, the president's Democratic opponent, have come out hard. But the president took the opportunity to take some jabs today of his own.

(BEGIN VIDEO CLIP)

BUSH: The other day my opponent said if he's elected the number of troops in Iraq will be significantly reduced within six months. I think it sends the wrong signal. It sends the wrong signal total enemy, who could easily wait six months and one day.

(END VIDEO CLIP)

QUIJANO: Now, look for this debate to continue playing out, Kyra. Still more than two months away until the election -- Kyra.

PHILLIPS: All right. Elaine Quijano, thanks so much.

And later in the hour we're going to talk to retired Major General Don Shepperd about that realignment and the impact and the effects.

Court's in session, and we're watching three big cases right now. It's a family affair at a hearing in the Michael Jackson child molestation case. Another setback for the prosecution in the Kobe Bryant case. Will his sexual assault trial go forward? And the jury in the Scott Peterson case hears more taped conversations between Peterson and his former lover.

Up first, Michael Jackson. Our Thelma Gutierrez is outside the courtroom -- Thelma.

THELMA GUTIERREZ, CNN CORRESPONDENT: Hi there, Kyra.

Well, district attorney Tom Sneddon is on the witness stand right now. He's being questioned by criminal defense attorney Tom Mesereau.

I can also tell you that Michael Jackson is in court as well. He's sitting with his defense team and keeping a very watchful eye on Sneddon.

Now, Jackson has not been required at all to attend any of the pretrial hearings; however, he, his parents and his siblings, LaToya, Janet and Jermaine, made sure to be here for this one. They wanted to make sure to confront the prosecutor in this case, Tom Sneddon.

Now, they arrived together in a large tour bus early this morning. Michael Jackson wore a white suit. He had a gold arm band. His siblings also wore white, perhaps in solidarity.

Now, 60 to 100 supporters all chanted "innocent" as Michael walked off the bus. Jackson then waved to them and proceeded inside.

At issue today, how far Sneddon went to gather evidence against Jackson. Now, the defense argues that Sneddon overstepped his bounds by personally conducting surveillance on private investigator Bradley Miller, who was working for Jackson's former defense attorney, Mark Geragos.

Sneddon says he believed that Miller was working for Jackson. He denied any personal knowledge of a connection between Miller or Geragos. Now, the defense says that Sneddon violated Jackson's right to a fair trial by invading the client-attorney privilege, and also that they had seized videotapes and files and letters and that those were all illegally seized from the private investigator's office.

(BEGIN VIDEO CLIP)

ARTHUR BARENS, CRIMINAL DEFENSE ATTORNEY: The district attorney has put himself in the middle of this case as much as he's put Mr. Jackson in the middle of this case. And we don't want to overlook his conduct and as he acted in a manner that is legally appropriate. And that's what the defense seeks to challenge now.

(END VIDEO CLIP)

GUTIERREZ: Now, we should also mention that the attorney general conducted an investigation into whether or not Michael Jackson had been manhandled during the time that he was being held by Santa Barbara sheriff's officials during his arrest. They put together that report.

The report has been sealed. But sources tell CNN that it is not apparent. It is not likely that he was manhandled at all.

Kyra, back to you.

PHILLIPS: Thelma, last time we were live from this courthouse Michael Jackson stepped up to the mike but didn't do any of the talking. He let everyone else around him do the talking. Are you expecting him to step up to the mike there today?

GUTIERREZ: That's a good question, Kyra. It's hard to tell. I mean, he may be here for the duration of the day while Tom Sneddon is on the witness stand.

Very difficult to tell whether or not he will actually come to the podium and address not only reporters, but I've got to tell you, about 100 supporters who are out here today, as well. We'll have to wait and see.

PHILLIPS: All right. Thelma Gutierrez there live from Santa Maria. Thanks so much -- Betty.

NGUYEN: Now to the Kobe Bryant sexual assault case, where the prosecution is reeling from yet another legal blow. Our Chris Lawrence is in Eagle, Colorado, with the latest.

Chris, what's the word?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Betty, everyone involved in the closed-door hearing has now left the courthouse. They are taking a lunch break for the next hour or so. But when they come back this afternoon prosecutors have to be hoping for better news than what they got this morning.

You know, we're still more than a week away from jury selection, but what gets decided on days like this will decide exactly what those potential jurors will hear. Prosecutors had asked -- the Colorado Supreme Court had argued to the Supreme Court that the accuser's sexual activities should not be admitted as evidence.

Well, today the Supreme Court decided not to consider that request, meaning aspects of the young woman's personal life will be on public display, and that increases her odds of pulling out of the criminal proceedings to concentrate on her civil case.

(BEGIN VIDEO CLIP)

CRAIG SILVERMAN, FMR. DENVER DEPUTY D.A.: After the preliminary hearing I stood out here saying that this was a weak case. It's only gotten weaker. I don't see how the prosecution can prevail given the ruling by the Supreme Court today.

(END VIDEO CLIP)

LAWRENCE: Now, it hasn't been a total loss for prosecutors, though. The judge did -- is allowing them to bring in an expert witness after the deadline passed. And he had already decided to limit testimony on the young woman's mental health, meaning any defense accusations on drug abuse or suspected suicide attempts would never be heard in court -- Betty.

NGUYEN: Chris Lawrence in Eagle, Colorado, thank you.

Scott Peterson's own words coming back to haunt him. Today jurors in his double murder trial are hearing more recordings of some of his phone conversations with Amber Frey, a woman he had an affair with just before his wife Laci disappeared. We'll have those details in about 20 minutes -- Kyra.

PHILLIPS: Overwhelming damage hits overwhelming relief workers trying to get help from Hurricane Charley. We are going to talk with a former FEMA director about the efforts to help out.

A big challenge for firefighters battling a growing blaze in California. We'll have the latest ahead.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I feel like, you know, if I dated someone who was liberal he would just be getting annoyed with me all the time.

(END VIDEO CLIP)

PHILLIPS: Personals and politics: Why some people are drawing party lines around their love life.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Category 4 hurricane. I hope I'm recording. It's gaining on us right here. (INAUDIBLE) Hurricane Charley...

(END VIDEO CLIP)

PHILLIPS: Well, as we know, that storm did more than just devastate neighborhoods. It's destroyed lives. And the Federal Emergency Management Agency will help storm survivors -- survivors, rather, rebuild.

FEMA is sending medical and rescue teams to Florida, as well as much needed supplies. And with more on that coordination and how it all works, former FEMA Director James Lee Witt. He joins us live from Washington. Now acting CEO of the International Code Council.

Jim, great to have you with us. Let's start with looking at the war on terror and looking at all the resources going overseas, and how the U.S. is strapped in that regard. Now you look at this natural disaster here at home and everyone is wondering do we have the funds and how does it work?

JAMES LEE WITT, FMR. DIRECTOR, FEMA: Well, of course, you know, when I was director of FEMA we had a contingency fund that had $2.5 billion appropriated by Congress in the contingency fund. But you know, I can assure you that Congress and the president and everyone will pull together to make sure the funds are there to help Florida rebuild.

PHILLIPS: What about the National Guard? We know right now our military is extremely strapped. There have been National Guard troops from this area that have gone overseas.

In a natural disaster like this, the National Guard is very important. So, are there enough troops? Are they responding? Will everything be OK on the military front?

WITT: Well, I think so. I think -- you know, a lot of the states have IMAC programs, which is a mutual aid system across state lines where they can pull in guard -- National Guard, helicopters and other supplies from other states that -- and then will then be reimbursed.

So, I think -- you know, I think that will be sufficient. But of course, you're right. There's been over 100,000 National Guard activated across the country. And you know, from fighting fires to hurricanes to floods, you know, it will affect some states at some point.

PHILLIPS: Have we seen a lot of National Guard activity so far yet?

WITT: Well, I think that Governor Bush has activated 4,000 National Guard from what I understand. And I'm sure that if more is needed that they will be able to work -- work through that.

PHILLIPS: All right. James, let me ask you about this, and especially as CEO of the International Code Council you'll know about bidding materials and building. And you talk about restructuring this area that has been affected.

Look at a national survey that was conducted -- this was just in July -- it was showing that builders are reporting shortages of cement and wall board, strand board (ph), steel framing, insulating materials.

So, you look at a shortage in July, and understandably probably a lot of contractors going overseas to help rebuild Iraq, and now you've got this disaster here in Florida. Is there -- are there enough contractors? Is there enough material to help the reconstruction process?

WITT: Well, you know, this is very unusual for particularly during a building boom and you have a catastrophic event like this, Charley in Florida. And the shortage of those particular supplies, whether it's roofing or -- or drywall, you know, could be a problem.

But right now, what is really important is, through the business industry, through a partnership, working together with the federal government and the state of Florida, is to be able to, particularly in the recovery side of this, to be able to make sure that those supplies are -- are put in there so they can recover as much as possible.

Just like Nextel has been down there putting in -- up their site so people can communicate. You know, they have put 80 generators in cell sites. It's a business public-private partnership that needs to be developed in Florida that would -- could help impact the recovery efforts much faster.

PHILLIPS: Now, James, let's talk about the possibility of price gouging. And the agricultural commissioner has come forward and said, look, yes, this could happen, and if it does we're going to press charges. There will be criminal charges.

How do you deal with that? I mean, not only looking at this natural disaster, but now you have this lack of supplies. How do you keep the peace and also make sure everybody gets what they need at a reasonable price?

WITT: Most of the states like Florida and, you know, California, and many others have put in legislation and laws that they cannot overprice or price gouge in catastrophic events. And I know the attorney general in Florida is going to aggressively push this.

You know, a lot of the -- a lot of the manufacturers and a lot of suppliers, like Lowe's, Home Depot and others, you know, take it very serious and have maintained their prices, and in some cases even lowered them to help communities and a partnership to recover.

PHILLIPS: What about small businesses? A lot of mom and pop shops there in that area.

WITT: Well, you know, it's very important for people to call the FEMA 1-800-621 number -- FEMA, because they will also get FEMA, but they'll to (INAUDIBLE), but they'll also get the Small Business Administration.

And if you have a small business that's been destroyed, then the Small Business Administration can -- if you have a mortgage or there, or loan, they can also rework that mortgage and loan, and then also work with you to help rebuild that small business.

And you know, I have seen over the years in disasters that a lot of small businesses, a high percentage of them never reopen because they just can't seem to get over that hump, you know, and make it. So, it's very important to get those small business businesses reopened very quickly.

PHILLIPS: Real quickly, too, it's a story we've been talking about. We'll go more in depth on it definitely in the coming days. But the citrus industry, you know, you talk about money and being able to rebuild. But when it comes to losing your crops, it's a much more difficult situation.

How is that going to be handled? How is it handled?

WITT: Well, usually when the president declares a federal disaster declaration they look at it from all aspects. And if -- if -- if the citrus industry has been destroyed and there's going to be a huge economic impact on those farmers, then it's important that the Department of Agriculture also weigh in and come in with their programs in helping those citrus farmers in -- in recovery.

PHILLIPS: Former FEMA director, James Lee Witt, we sure thank you for your time today, sir.

WITT: Thank you.

NGUYEN: Now to other news across America. Wildfires blaze a path of destruction across California. Twenty-two houses have been gutted near the city of Redding, where some 300 people have within evacuated. Firefighters are battling seven wildfires that have blackened some 34,000 acres in the state.

Paying at the pump is a bit cheaper. That's right. The Lundberg Survey says gas prices have dropped almost a nickel per gallon during the past three weeks. However, analysts warn the rising cost of crude oil could cause gas prices to go up as well.

And the Miller brewing controversy leave a bitter taste for some. Miller features no African-American rock artists on its commemorative beer cans. The cans feature "Rolling Stone" cover shots.

Now, "Rolling Stone" says race wasn't a consideration when choosing the artists. The Miller cans mark the 50th anniversary of rock music.

PHILLIPS: Confrontations and lies. More of Amber Frey's tapes being played in the Scott Peterson murder trial. We're live in California.

Plus, quitting smoking. A new study shows it may be harder for women to put down that the smoke.

RHONDA SCHAFFLER, CNN CORRESPONDENT: I'm Rhonda Schaffler in New York. Coming to a theater near you, Coca-Cola the movie? It could happen. I'll have details when LIVE FROM rolls on after this break. (COMMERCIAL BREAK)

NGUYEN: 7-Up is going pink and a movie about Coke? Rhonda Schaffler joins us now from the New York Stock Exchange with the fizz buzz.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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Aired August 16, 2004 - 13:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: We begin this hour with the stress in the wake of disaster. Survivors of Hurricane Charley getting over the shock but only beginning the torturous jobs of rebuilding. Many thousands of officials and volunteers are trying to help, but the need is overwhelming.
And we get the latest now from CNN's Ed Lavandera in the formerly quiet and picturesque Port Charlotte, Florida.

Good afternoon.

ED LAVANDERA, CNN CORRESPONDENT: Hello. Well, you know, most of the weekend we've spent in Punta Gorda, which is just across the bay. And it's interesting this town received most of the attention, but Charlotte, very -- Port Charlotte, just very close, and the destruction just as devastating.

As you can take a look here, we were speaking with the owner of this home who had taken off just before the storm hit and took shelter inland with some -- with some friends. And the house completely devastated by the storm.

And you know, it's part of the cleanup process here. In fact, the gentleman here just picked up and walked away, and he said, "Time to go find the FEMA representatives."

But you know, the residents -- most of the residents here trying to pick up the little pieces that they can. The cleanup here hampered lately today just by the heat and the humidity as many of the officials here in this area saying that many of the elderly residents in this area succumbing to a lot of heat exhaustion and not being properly hydrated. As we've mentioned, getting the food and water and supplies into this area has been the primary concern so far.

You know, one of the other issues that has happened here is that this part of Florida, of course, is well known for its citrus industry. Some $9 billion in damage estimated to that industry. But there's also a lot of people around here who just, you know, have citrus trees in their backyard.

And they have taken a lot of pride of being able to pick the fruits and, you know, kind of send them to relatives up north and that sort of thing. You know, and it's one of the sad notes is that they see all of these trees have taken such a terrible toll in this storm.

(BEGIN VIDEO CLIP) PAUL NILAND, VACATION HOME OWNER: The oranges and the tangelos and grapefruit are absolutely beautiful, the nicest you'll ever eat. But they are gone now for another year. But maybe they will come back.

(END VIDEO CLIP)

LAVANDERA: And we're back here live, showing you a little bit more of the destruction that this particular neighborhood has endured. You know, one of the things that officials here are hoping will happen is that the -- the supplies and relief and everything will continue to arrive. They say they have been very happy with the way all of that has been going so far, but they know there's a lot of work.

Help has come in from across the state. And officials here say that they have been overwhelmed. They said a lot of the help started arriving before the winds had even calmed down. And as you can see, there's a lot of work left to be done.

Back to you.

NGUYEN: Ed, with all this death and destruction out there, unfortunately some people take advantage of the situation. Has looting or price gouging become a problem?

LAVANDERA: Well, you know, we've heard some reports of that sort of thing. We've also heard some reports that, you know, tempers are flaring at gas stations and that sort of thing. But it's not as widespread.

It's nowhere near the level it was during Hurricane Andrew, where that was such a major problem. We haven't heard it that widespread. But there have been some isolated cases of looting issues.

And there's also been some cases that we've heard reports of as well, the issues having to deal with price gouging and that sort of thing. But officials say that they are very weary of that and they will be paying very close attention. And if any reports like that need to come in, that they suggest -- suggest that people call the authorities and report that kind of thing immediately.

NGUYEN: CNN's Ed Lavandera in Port Charlotte. Thank you.

Awfully hot there in Port Charlotte. Don't want to be without air-conditioning this time of year, Jacqui Jeras.

(WEATHER REPORT)

NGUYEN: All right. Jacqui Jeras, thank you.

Twenty-five federal disaster areas, thousands of unlivable homes, 11,000 applications for federal aid, and counting. The Federal Emergency Management Agency was created for scenarios just like this. And in just a few minutes, we'll talk to FEMA about the resources and the track record with former FEMA honcho James Lee Witt. That's at quarter past this hour of LIVE FROM -- Kyra. KYRA PHILLIPS, CNN ANCHOR: Also this hour, the commander-in- chief performs the military shuffle. President Bush announcing a major realignment of U.S. troops to help fight the war on terror. CNN's Elaine Quijano has that story now live from the White House -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Good afternoon, Kyra.

President Bush made that announcement during a campaign appearance in Cincinnati, Ohio. He was delivering a speech before the Convention of Veterans of Foreign Wars there in Cincinnati. The president basically saying that the world has changed a great deal and said that he believes the U.S. military needs to change as well in the way it positions its forces globally.

Now, administration officials say this represents a shift away from the time when the U.S. saw the Soviet Union as the primary threat. Now the U.S. wants to focus on meeting what the administration sees as new emerging threats in the war on terror. Now, today the president also said the decision took into account the quality of life for military personnel, something critics say has suffered under his watch.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Although we'll still have a significant presence overseas, under the plan I'm announcing today over the next 10 years we will bring home about 60,000 to 70,000 uniformed personnel and about 100,000 members and civilian employees.

(END VIDEO CLIP)

QUIJANO: The president saying that he feels that the plight of military personnel is something that he very much wants to help alleviate, some of the stress they are feeling. But also, we should note administration officials are saying this will not affect -- the troop reductions will not affect any troops currently stationed in Iraq and Afghanistan. Some 140,000 American troops are stationed there.

Now, as for the speech itself, this was actually delivered within the context of a campaign event. This trip, although a major foreign policy announcement made during that speech, this trip actually sponsored by the Bush-Cheney reelection campaign. And already the political debate is ensuing.

Critics of the president, including advisors of Senator John Kerry, the president's Democratic opponent, have come out hard. But the president took the opportunity to take some jabs today of his own.

(BEGIN VIDEO CLIP)

BUSH: The other day my opponent said if he's elected the number of troops in Iraq will be significantly reduced within six months. I think it sends the wrong signal. It sends the wrong signal total enemy, who could easily wait six months and one day.

(END VIDEO CLIP)

QUIJANO: Now, look for this debate to continue playing out, Kyra. Still more than two months away until the election -- Kyra.

PHILLIPS: All right. Elaine Quijano, thanks so much.

And later in the hour we're going to talk to retired Major General Don Shepperd about that realignment and the impact and the effects.

Court's in session, and we're watching three big cases right now. It's a family affair at a hearing in the Michael Jackson child molestation case. Another setback for the prosecution in the Kobe Bryant case. Will his sexual assault trial go forward? And the jury in the Scott Peterson case hears more taped conversations between Peterson and his former lover.

Up first, Michael Jackson. Our Thelma Gutierrez is outside the courtroom -- Thelma.

THELMA GUTIERREZ, CNN CORRESPONDENT: Hi there, Kyra.

Well, district attorney Tom Sneddon is on the witness stand right now. He's being questioned by criminal defense attorney Tom Mesereau.

I can also tell you that Michael Jackson is in court as well. He's sitting with his defense team and keeping a very watchful eye on Sneddon.

Now, Jackson has not been required at all to attend any of the pretrial hearings; however, he, his parents and his siblings, LaToya, Janet and Jermaine, made sure to be here for this one. They wanted to make sure to confront the prosecutor in this case, Tom Sneddon.

Now, they arrived together in a large tour bus early this morning. Michael Jackson wore a white suit. He had a gold arm band. His siblings also wore white, perhaps in solidarity.

Now, 60 to 100 supporters all chanted "innocent" as Michael walked off the bus. Jackson then waved to them and proceeded inside.

At issue today, how far Sneddon went to gather evidence against Jackson. Now, the defense argues that Sneddon overstepped his bounds by personally conducting surveillance on private investigator Bradley Miller, who was working for Jackson's former defense attorney, Mark Geragos.

Sneddon says he believed that Miller was working for Jackson. He denied any personal knowledge of a connection between Miller or Geragos. Now, the defense says that Sneddon violated Jackson's right to a fair trial by invading the client-attorney privilege, and also that they had seized videotapes and files and letters and that those were all illegally seized from the private investigator's office.

(BEGIN VIDEO CLIP)

ARTHUR BARENS, CRIMINAL DEFENSE ATTORNEY: The district attorney has put himself in the middle of this case as much as he's put Mr. Jackson in the middle of this case. And we don't want to overlook his conduct and as he acted in a manner that is legally appropriate. And that's what the defense seeks to challenge now.

(END VIDEO CLIP)

GUTIERREZ: Now, we should also mention that the attorney general conducted an investigation into whether or not Michael Jackson had been manhandled during the time that he was being held by Santa Barbara sheriff's officials during his arrest. They put together that report.

The report has been sealed. But sources tell CNN that it is not apparent. It is not likely that he was manhandled at all.

Kyra, back to you.

PHILLIPS: Thelma, last time we were live from this courthouse Michael Jackson stepped up to the mike but didn't do any of the talking. He let everyone else around him do the talking. Are you expecting him to step up to the mike there today?

GUTIERREZ: That's a good question, Kyra. It's hard to tell. I mean, he may be here for the duration of the day while Tom Sneddon is on the witness stand.

Very difficult to tell whether or not he will actually come to the podium and address not only reporters, but I've got to tell you, about 100 supporters who are out here today, as well. We'll have to wait and see.

PHILLIPS: All right. Thelma Gutierrez there live from Santa Maria. Thanks so much -- Betty.

NGUYEN: Now to the Kobe Bryant sexual assault case, where the prosecution is reeling from yet another legal blow. Our Chris Lawrence is in Eagle, Colorado, with the latest.

Chris, what's the word?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Betty, everyone involved in the closed-door hearing has now left the courthouse. They are taking a lunch break for the next hour or so. But when they come back this afternoon prosecutors have to be hoping for better news than what they got this morning.

You know, we're still more than a week away from jury selection, but what gets decided on days like this will decide exactly what those potential jurors will hear. Prosecutors had asked -- the Colorado Supreme Court had argued to the Supreme Court that the accuser's sexual activities should not be admitted as evidence.

Well, today the Supreme Court decided not to consider that request, meaning aspects of the young woman's personal life will be on public display, and that increases her odds of pulling out of the criminal proceedings to concentrate on her civil case.

(BEGIN VIDEO CLIP)

CRAIG SILVERMAN, FMR. DENVER DEPUTY D.A.: After the preliminary hearing I stood out here saying that this was a weak case. It's only gotten weaker. I don't see how the prosecution can prevail given the ruling by the Supreme Court today.

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LAWRENCE: Now, it hasn't been a total loss for prosecutors, though. The judge did -- is allowing them to bring in an expert witness after the deadline passed. And he had already decided to limit testimony on the young woman's mental health, meaning any defense accusations on drug abuse or suspected suicide attempts would never be heard in court -- Betty.

NGUYEN: Chris Lawrence in Eagle, Colorado, thank you.

Scott Peterson's own words coming back to haunt him. Today jurors in his double murder trial are hearing more recordings of some of his phone conversations with Amber Frey, a woman he had an affair with just before his wife Laci disappeared. We'll have those details in about 20 minutes -- Kyra.

PHILLIPS: Overwhelming damage hits overwhelming relief workers trying to get help from Hurricane Charley. We are going to talk with a former FEMA director about the efforts to help out.

A big challenge for firefighters battling a growing blaze in California. We'll have the latest ahead.

Plus this...

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UNIDENTIFIED FEMALE: I feel like, you know, if I dated someone who was liberal he would just be getting annoyed with me all the time.

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PHILLIPS: Personals and politics: Why some people are drawing party lines around their love life.

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UNIDENTIFIED MALE: Category 4 hurricane. I hope I'm recording. It's gaining on us right here. (INAUDIBLE) Hurricane Charley...

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PHILLIPS: Well, as we know, that storm did more than just devastate neighborhoods. It's destroyed lives. And the Federal Emergency Management Agency will help storm survivors -- survivors, rather, rebuild.

FEMA is sending medical and rescue teams to Florida, as well as much needed supplies. And with more on that coordination and how it all works, former FEMA Director James Lee Witt. He joins us live from Washington. Now acting CEO of the International Code Council.

Jim, great to have you with us. Let's start with looking at the war on terror and looking at all the resources going overseas, and how the U.S. is strapped in that regard. Now you look at this natural disaster here at home and everyone is wondering do we have the funds and how does it work?

JAMES LEE WITT, FMR. DIRECTOR, FEMA: Well, of course, you know, when I was director of FEMA we had a contingency fund that had $2.5 billion appropriated by Congress in the contingency fund. But you know, I can assure you that Congress and the president and everyone will pull together to make sure the funds are there to help Florida rebuild.

PHILLIPS: What about the National Guard? We know right now our military is extremely strapped. There have been National Guard troops from this area that have gone overseas.

In a natural disaster like this, the National Guard is very important. So, are there enough troops? Are they responding? Will everything be OK on the military front?

WITT: Well, I think so. I think -- you know, a lot of the states have IMAC programs, which is a mutual aid system across state lines where they can pull in guard -- National Guard, helicopters and other supplies from other states that -- and then will then be reimbursed.

So, I think -- you know, I think that will be sufficient. But of course, you're right. There's been over 100,000 National Guard activated across the country. And you know, from fighting fires to hurricanes to floods, you know, it will affect some states at some point.

PHILLIPS: Have we seen a lot of National Guard activity so far yet?

WITT: Well, I think that Governor Bush has activated 4,000 National Guard from what I understand. And I'm sure that if more is needed that they will be able to work -- work through that.

PHILLIPS: All right. James, let me ask you about this, and especially as CEO of the International Code Council you'll know about bidding materials and building. And you talk about restructuring this area that has been affected.

Look at a national survey that was conducted -- this was just in July -- it was showing that builders are reporting shortages of cement and wall board, strand board (ph), steel framing, insulating materials.

So, you look at a shortage in July, and understandably probably a lot of contractors going overseas to help rebuild Iraq, and now you've got this disaster here in Florida. Is there -- are there enough contractors? Is there enough material to help the reconstruction process?

WITT: Well, you know, this is very unusual for particularly during a building boom and you have a catastrophic event like this, Charley in Florida. And the shortage of those particular supplies, whether it's roofing or -- or drywall, you know, could be a problem.

But right now, what is really important is, through the business industry, through a partnership, working together with the federal government and the state of Florida, is to be able to, particularly in the recovery side of this, to be able to make sure that those supplies are -- are put in there so they can recover as much as possible.

Just like Nextel has been down there putting in -- up their site so people can communicate. You know, they have put 80 generators in cell sites. It's a business public-private partnership that needs to be developed in Florida that would -- could help impact the recovery efforts much faster.

PHILLIPS: Now, James, let's talk about the possibility of price gouging. And the agricultural commissioner has come forward and said, look, yes, this could happen, and if it does we're going to press charges. There will be criminal charges.

How do you deal with that? I mean, not only looking at this natural disaster, but now you have this lack of supplies. How do you keep the peace and also make sure everybody gets what they need at a reasonable price?

WITT: Most of the states like Florida and, you know, California, and many others have put in legislation and laws that they cannot overprice or price gouge in catastrophic events. And I know the attorney general in Florida is going to aggressively push this.

You know, a lot of the -- a lot of the manufacturers and a lot of suppliers, like Lowe's, Home Depot and others, you know, take it very serious and have maintained their prices, and in some cases even lowered them to help communities and a partnership to recover.

PHILLIPS: What about small businesses? A lot of mom and pop shops there in that area.

WITT: Well, you know, it's very important for people to call the FEMA 1-800-621 number -- FEMA, because they will also get FEMA, but they'll to (INAUDIBLE), but they'll also get the Small Business Administration.

And if you have a small business that's been destroyed, then the Small Business Administration can -- if you have a mortgage or there, or loan, they can also rework that mortgage and loan, and then also work with you to help rebuild that small business.

And you know, I have seen over the years in disasters that a lot of small businesses, a high percentage of them never reopen because they just can't seem to get over that hump, you know, and make it. So, it's very important to get those small business businesses reopened very quickly.

PHILLIPS: Real quickly, too, it's a story we've been talking about. We'll go more in depth on it definitely in the coming days. But the citrus industry, you know, you talk about money and being able to rebuild. But when it comes to losing your crops, it's a much more difficult situation.

How is that going to be handled? How is it handled?

WITT: Well, usually when the president declares a federal disaster declaration they look at it from all aspects. And if -- if -- if the citrus industry has been destroyed and there's going to be a huge economic impact on those farmers, then it's important that the Department of Agriculture also weigh in and come in with their programs in helping those citrus farmers in -- in recovery.

PHILLIPS: Former FEMA director, James Lee Witt, we sure thank you for your time today, sir.

WITT: Thank you.

NGUYEN: Now to other news across America. Wildfires blaze a path of destruction across California. Twenty-two houses have been gutted near the city of Redding, where some 300 people have within evacuated. Firefighters are battling seven wildfires that have blackened some 34,000 acres in the state.

Paying at the pump is a bit cheaper. That's right. The Lundberg Survey says gas prices have dropped almost a nickel per gallon during the past three weeks. However, analysts warn the rising cost of crude oil could cause gas prices to go up as well.

And the Miller brewing controversy leave a bitter taste for some. Miller features no African-American rock artists on its commemorative beer cans. The cans feature "Rolling Stone" cover shots.

Now, "Rolling Stone" says race wasn't a consideration when choosing the artists. The Miller cans mark the 50th anniversary of rock music.

PHILLIPS: Confrontations and lies. More of Amber Frey's tapes being played in the Scott Peterson murder trial. We're live in California.

Plus, quitting smoking. A new study shows it may be harder for women to put down that the smoke.

RHONDA SCHAFFLER, CNN CORRESPONDENT: I'm Rhonda Schaffler in New York. Coming to a theater near you, Coca-Cola the movie? It could happen. I'll have details when LIVE FROM rolls on after this break. (COMMERCIAL BREAK)

NGUYEN: 7-Up is going pink and a movie about Coke? Rhonda Schaffler joins us now from the New York Stock Exchange with the fizz buzz.

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