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Najaf Fighting, Baghdad Mortar Attack; Eight Terror Suspects Charged; Three 9/11 Congressional Hearings; IL Importing Prescription Drugs?

Aired August 17, 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: Bullets, bombs, and the battle for Najaf -- peace efforts put on hold while a conflict crucial to the future of Iraq rages on.
BETTY NGUYEN, CNN ANCHOR: Flash flooding: A wall of water sweeps away cars and traps people on rooftops. The search is on for the missing in Britain.

PHILLIPS: Prescription plan: One state's governor set to announce a way for residents to buy cheaper drugs, in defiance of federal law.

(BEGIN VIDEO CLIP)

SHIMON GIBSON, ARCHAEOLOGIST: It's nice to think about, the idea that down these steps, Jesus himself walked, and then performed baptism rites.

(END VIDEO CLIP)

NGUYEN: Divine discovery: An archaeologist says this cave offers proof of biblical stories.

From the CNN Center here in Atlanta, I'm Betty Nguyen, in for Miles O'Brien.

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

Up first this hour, warplanes and peace talks in Najaf. A scaled back, long delayed delegation of Iraqi envoys road U.S. helicopters into the line of fire today, hoping to transform firefights into political debates. For now, though, the bullets and bombs are flying in Baghdad as well -- the Shiite heartland.

A mortar attack in the capital killed at least seven people. CNN's John Vause has the latest.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: The mortar landed in busy Al Rashid Street in central Baghdad, killing at least seven people, wounding more than 40 others. The Interior Ministry here says it was intended for a police station, but missed its mark, landing in a busy residential commercial area. One residential building was badly damaged; seven cars were destroyed.

There has been heavy fighting, too, in Najaf between U.S. and Iraqi forces, and the Mehdi Militia. U.S. warplanes have dropped bombs around the cemetery, not far from the Imam Ali mosque, where Muqtada al-Sadr and his Mehdi Militia remain holed up. His numbers have apparently swelled from 1,000 just last week to reportedly close to 2,000 now.

All of this as a delegation from Iraq's National Conference arrived to try and convince al-Sadr to dissolve his Mehdi Militia, lay down their weapons, and join the mainstream political party. The delegation from Baghdad was flown by U.S. helicopter to Najaf amid security concerns that insurgents had laid an ambush for a convoy on the road between Baghdad and Najaf.

And at the Iraqi National Conference, meantime, the main purpose of that conference was to elect a 100-person council to advise the Iraqi interim government.

But because Najaf has dominated the three-day conference, that vote has now been delayed. The conference will go an extra day. The vote should be held sometime tomorrow.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: And we'll talk more about flashpoint Najaf in just a few minutes with CNN military analyst Don Shepard. That's about half past the hour right here on LIVE FROM.

NGUYEN: From London now, word that eight of the 13 terror suspects rounded up two weeks ago are now charged with plotting attacks, possibly using radioactive or chemical weapons. Among the eight is an alleged al Qaeda recon and intel specialist who may be linked to the code orange alerts in New York, New Jersey, and Washington.

CNN's Walter Rodgers has all the details, and he joins us now. Walt, what do you know?

WALTER RODGERS, CNN CORRESPONDENT, LONDON: Betty, this is an important case, a very significant case, with ramifications on three continents: South Asia, specifically, Pakistan; Europe, specifically, Britain; and of course, the United States, where these targets are said to have been planned. What we have in Britain is the charging of eight individuals under Britain's Terrorism 2000 Act.

They have been in custody for two weeks now, and this was the deadline for charging them formally, otherwise they had to be released. The British have formally charged them. They will go to trial probably in six to nine months. One of the more interesting of the eight men charged is identified by the British as Dhiren Barot. In point of fact, the Americans know him as Esa al-Hindi, a major al Qaeda operative. The charges against the men include conspiracy to murder and conspiracy to commit a public nuisance. Now, that sounds innocuous; it is actually very serious. Because according to the charges in the British court, the conspiracy to commit public nuisance would have been executed by the use of radioactive weapons, toxic gasses, chemical weapons and explosives.

The targets, according, again, to the British charges, these men had a reconnaissance plan, and they had documents indicating that they had cased, if you will, the New York Stock Exchange, Citigroup in New York, the Prudential building in New Jersey, and also, in Washington, D.C., the International Monetary Fund. I need to stress these are all allegations at this point.

The information here, however, of the alleged targets and the reconnaissance plans is not really all that new. But the fact that these men were brought in in Britain two weeks ago makes this a very significant case. They are going to be going to trial -- Betty.

NGUYEN: Walter, I know the focus right now is on those British charges. But any indication if the U.S. is going to bring about its own charges against these men?

RODGERS: Well, that would be a question better asked of the U.S. Justice Department. But the U.S. Attorney General, John Ashcroft, did say that the British and the Americans, particularly the American FBI, have been working very closely on this case. Indeed, there's a thorough exchange of intelligence between the British and the Americans because they, perhaps, more than any other two nations, realize that they really have a serious war on terror, and the outcome is not at all clear at this point -- Betty.

NGUYEN: CNN's Walter Rodgers, thank you -- Kyra.

PHILLIPS: Now to Capitol Hill, where the secretary of defense is defending his turf against moves to disengage the Pentagon from intelligence. Here's CNN Congressional correspondent Ed Henry with more -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Kyra. That's right, three more Congressional hearings today focusing on the 9/11 Commission's final report. So many hearings, in fact, in August, that they're almost becoming a blur. There was a House hearing today featuring Tom Kean and Lee Hamilton from the 9/11 Commission, a Senate hearing with 9/11 families testifying.

But as you mentioned, that hearing with Defense Secretary Donald Rumsfeld really standing out amid the clutter of so many hearings. That is because he is defending that turf right now. Defense Secretary Rumsfeld controls about 85 percent of the nation's intelligence budget. But in fact, there's a lot of pressure to give that budget power to the National Intelligence Director.

You will remember that Secretary Rumsfeld is in a bit of a tough spot here. He had initially opposed the idea of a National Intelligence Director. He's pushing back hard on not giving budget power, full budget power to this new National Intelligence Director.

He had to take the unusual step at the beginning of his testimony to point out that on some points in his testimony, he would be speaking for himself, not for the administration.

Democrats like Senator Carl Levin really tried to exploit that split between Rumsfeld and President Bush. Take a listen.

(BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D), MICHIGAN: Mr. Secretary, we got specific recommendations...

DONALD RUMSFELD, DEFENSE SECRETARY: I understand.

LEVIN: ... from the 9/11 Commission. I'm quoting them. I just want to ask you your personal agreement or disagreement. If you can't give us that, that's OK, but just say you can't give us a personal yes or no from your perspective.

RUMSFELD: I can't do it with yes or no, that's for sure.

LEVIN: Thank you, thank you.

RUMSFELD: It's a vastly more complex question.

(END VIDEO CLIP)

HENRY: That complexity is leading Rumsfeld to realize that while he did not win the fight of over creation of a National Intelligence Director, he wants to fight out the details of exactly how that director's office will be structured. Here's another exchange between Rumsfeld and Senate Armed Services Chairman John Warner.

(BEGIN VIDEO CLIP)

RUMSFELD: We are still looking at these things...

SEN. JOHN WARNER (R), ARMED SERVICES CHMN.: Well, I'm going to continue to...

RUMSFELD: ... and they're terribly important. And I am not in the position to say anything other than the devil's in the details.

WARNER: All right, I accept that. But the work of the Congress is moving ahead. We've got some momentum in these committees. We're coming up with ideas. And the sooner we can kind of get those guideposts from our present administration, the better we will be able to form our work.

(END VIDEO CLIP)

HENRY: You can hear Chairman Warner there pointing out the fact that on the other side of the issue, people in the intelligence community have been very aggressive about pushing back hard and saying that they believe that a National Intelligence Director should have that full budget power. And in fact, Kean and Hamilton have also been very outspoken about that.

That's why you see Chairman Warner there trying to prod the Bush administration to give a little clearer guidance to the Congress on how they want this new director's office structured. Obviously, this is going to move very quickly when Congress comes back to town at full strength in September and actually deal with the legislation here, Kyra.

PHILLIPS: It will be interesting to see who's up for the job. Ed Henry live from the Hill, thanks so much -- Betty.

NGUYEN: We're receiving amazing video of flash flooding in Great Britain. Check it out. Dozens of cars are swept away by a torrent of water in Boscastle, which is a village southwest of London.

A short burst of rain yesterday caused a wall of water to sweep down the narrow valley, which is a popular tourist destination. Now, seven helicopters scrambled to join that rescue effort. Crews plucked stranded villagers and tourists from rooftops and even the tops of cars. At least 15 people remain unaccounted for.

PHILLIPS: Well, as if things weren't bad enough in hurricane- ravaged Florida, authorities are now fighting "greed in a time of need." That's a quote from the state attorney general, announcing lawsuits against two hotels accused of price gouging.

Overall, officials say the state is bouncing back faster, though, than it did after Andrew. But that's small comfort to the thousands of people who don't have homes or the quarter million plus who still lack power.

That includes everybody in Punta Gorda where, today, we find CNN's Bob Franken. Bob, what's it like?

BOB FRANKEN, CNN CORRESPONDENT: Well, what it's like is, where we are right now has become sort of the center of activity. If you look behind me, you will see, as we've been showing earlier on CNN, the National Guard and a variety of state, local, federal, and private organizations all combining to provide the items necessary for survival for those who have lost their homes, lost their power.

As a matter of fact, a short time ago, some of the units from the National Guard loaded up their trucks and went out into neighborhoods responding to the complaint that a lot of people did not have the wherewithal to come down here. Now, the Homeland Security Secretary Tom Ridge and the Health and Human Services Secretary Tommy Thompson are touring the area now.

They are not stopping here. But the message, every time somebody from the administration opens his mouth, is the federal government does care for you, causing some remembrances of 1992 and Hurricane Andrew, where the first President Bush is said to have suffered political damage when many felt there was an inadequate response to Andrew.

As for the FEMA director now, he is telling people that those scam artists that you were talking about had better watch what they're doing or they're going to end up in jail.

(BEGIN VIDEO CLIP)

MICHAEL BROWN, FEMA DIRECTOR: Folks, if you're out there and you're thinking about doing this, you'd better not, because I've talked to the attorney general in this state. He's going to put you in jail. FEMA fraud inspectors are out here; they'll be watching, and they'll put you in jail. So, leave these disaster victims alone.

(END VIDEO CLIP)

FRANKEN: And they talk about remarkable progress here, Kyra, but that should be put in perspective -- such horrible damage that it's going to be weeks, months, or even longer before full recovery is achieved here -- Kyra.

PHILLIPS: Bob Franken live from Punta Gorda, thanks so much -- Betty.

NGUYEN: The land of Lincoln is moving to free its citizens from the high cost of prescription drugs. More on that now from reporter Chuck Coppola of CNN affiliate WGN in Chicago -- Chuck.

CHUCK COPPOLA, WGN AFFILIATE, CHICAGO: Yes, well, hello. Governor Rod Blagojevich here in Illinois is proposing a plan to import from Canada, Ireland, and England about 100 drugs -- prescription drugs for any Illinois resident regardless of income.

The 100 or so drugs include long term condition drugs, arthritis- treating drugs, things like Lipitor, which sells for $214 for a 30-day supply in the U.S. -- sells in Ireland for about $144, and $158 in England, and $162 in Canada, respectively.

So, there is a lot of support here in Illinois for it. I spoke with many senior citizens who stand to gain quite a lot from this. They say they could estimate about a 25 to 50 percent savings for a lot of their prescription drugs. There are opponents of this as well, as you might well imagine.

The FDA is expressing concern about the safety of these drugs from other countries, and the American Medical Association echoes that, saying patients' safety is their primary concern for unapproved drugs -- Betty.

NGUYEN: Chuck, last year, a study showed that the state could save some $91 million with this plan, and you mentioned safety. What's being done to regulate the safety of these drugs?

COPPOLA: Well, they're going to be using about 35 to 50 different pharmaceutical outlets to do this. They say they will be screened, so that's the first order of checking on this. And as far as the rest of the concerns of this, really, it's a matter of cost, primarily, to Illinois residents.

The State of Illinois also stands to gain from the taxpayers' point of view. There are about 420,000 state workers who would be encouraged to use this plan. And one estimate says that that could save the State of Illinois about $50 million each year.

NGUYEN: Chuck Coppola of WGN in Chicago, thank you very much -- Kyra.

PHILLIPS: Damage estimates in the billions of dollars for Hurricane Charley. In just a few moments, Homeland Security Secretary Tom Ridge expected to talk about his tour of the damage. We're going to bring that to you live.

Oprah Winfrey's got murder on her mind, but it's all part of performing her civic duty. We'll explain.

MICHAEL HOLMES, CNN, ATHENS: And I'm Michael Holmes live in Athens. I'll have a report on Michael Phelps. He still has one record he can make. I'll also have a report on the man in the tutu at the synchronized diving.

(COMMERCIAL BREAK)

NGUYEN: Here's a reminder for you. Tomorrow night, a CNN special event, Paula Zahn takes the pulse of undecided voters in the battleground state of Ohio. What will make them vote for Bush or Kerry? Well, you can find out tomorrow night at 8:00 Eastern as Paula Zahn hosts "The Undecided Vote," a CNN town hall meeting, live from Ohio.

PHILLIPS: News across America now. Attorneys throwing mud at each other's claims as Michael Jackson sits serenely in a white suit. At issue in yesterday's preliminary hearing, the actions of DA Tom Sneddon in the weeks before bringing molestation charges. And at one point, the judge asked Sneddon not to spar with the defense attorney. That hearing continues today. Jackson's not expected to attend.

In Chicago, proving she's really just a regular citizen, Oprah Winfrey reports for jury duty, picked to sit on a murder trial. That case involves a shooting allegedly sparked after the victim passed a fake $50 bill. Lawyers will do well to make it snappy. Oprah told reporters, "I'm just hoping it doesn't take longer than a week, because I've got shows to do."

Dying for a discount? Well, you know the saying, "you can't take it with you." So, why not make a cheap exit in a Costco casket? The nation's leading wholesale club is test marketing six different models of steel caskets -- suggested retail price, $799.99. I guess they figure if you have room enough to store a 55-gallon drum of mayonnaise, well, you have the space to store a coffin until needed.

NGUYEN: All right, well, a lot of googley eyes on Wall Street as investors get ready to pounce on the much ballyhooed launch of Google on Nasdaq. Is tomorrow G-day? Well, CNN's Mary Snow...

(MARKET REPORT)

PHILLIPS: Well, the high stakes battle for Najaf ahead: Why the fighting there is more than a turf war. It's key to the future of democracy in Iraq. Ritual cleansing: Baptisms and a discovery of biblical proportions. We're going to take you inside what's believed to be the cave of John the Baptist.

Also straight ahead, we're expecting an exclusive live interview with Secretary of Homeland Security, Tom Ridge, who's traveling with our Jeanne Meserve. He's touring the damaged areas in Florida. We'll take that live as soon as it happens.

(COMMERCIAL BREAK)

PHILLIPS: Well, Florida officials are trying to assess the billions of dollars in damages left by Hurricane Charley, and that storm may turn out to have a surprising impact further down the road...

(STOCK MARKET REPORT)

PHILLIPS: Taking a look now at stories in the news, a famed photographer who covered some of the most pivotal moments in U.S. history is dead. Carl Mydans, one of the first photojournalists for "Life" magazine chronicled events from the Great Depression to war and politics. Mydans was 97-years-old.

President Bush arriving in Philadelphia just moments ago. The president is going to be holding a rally at a Boeing helicopter plant in Ridley Park. We're going to have more on his campaign stop next hour.

British authorities charging eight men on suspicion of planning a terrorist attack in the U.S. The men were captured two weeks ago. Some of them are accused of possessing documents of potential targets such as the New York Stock Exchange. All eight of them appear to be in court tomorrow.

We're keeping you informed, CNN, the most trusted name in news.

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Aired August 17, 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: Bullets, bombs, and the battle for Najaf -- peace efforts put on hold while a conflict crucial to the future of Iraq rages on.
BETTY NGUYEN, CNN ANCHOR: Flash flooding: A wall of water sweeps away cars and traps people on rooftops. The search is on for the missing in Britain.

PHILLIPS: Prescription plan: One state's governor set to announce a way for residents to buy cheaper drugs, in defiance of federal law.

(BEGIN VIDEO CLIP)

SHIMON GIBSON, ARCHAEOLOGIST: It's nice to think about, the idea that down these steps, Jesus himself walked, and then performed baptism rites.

(END VIDEO CLIP)

NGUYEN: Divine discovery: An archaeologist says this cave offers proof of biblical stories.

From the CNN Center here in Atlanta, I'm Betty Nguyen, in for Miles O'Brien.

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

Up first this hour, warplanes and peace talks in Najaf. A scaled back, long delayed delegation of Iraqi envoys road U.S. helicopters into the line of fire today, hoping to transform firefights into political debates. For now, though, the bullets and bombs are flying in Baghdad as well -- the Shiite heartland.

A mortar attack in the capital killed at least seven people. CNN's John Vause has the latest.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: The mortar landed in busy Al Rashid Street in central Baghdad, killing at least seven people, wounding more than 40 others. The Interior Ministry here says it was intended for a police station, but missed its mark, landing in a busy residential commercial area. One residential building was badly damaged; seven cars were destroyed.

There has been heavy fighting, too, in Najaf between U.S. and Iraqi forces, and the Mehdi Militia. U.S. warplanes have dropped bombs around the cemetery, not far from the Imam Ali mosque, where Muqtada al-Sadr and his Mehdi Militia remain holed up. His numbers have apparently swelled from 1,000 just last week to reportedly close to 2,000 now.

All of this as a delegation from Iraq's National Conference arrived to try and convince al-Sadr to dissolve his Mehdi Militia, lay down their weapons, and join the mainstream political party. The delegation from Baghdad was flown by U.S. helicopter to Najaf amid security concerns that insurgents had laid an ambush for a convoy on the road between Baghdad and Najaf.

And at the Iraqi National Conference, meantime, the main purpose of that conference was to elect a 100-person council to advise the Iraqi interim government.

But because Najaf has dominated the three-day conference, that vote has now been delayed. The conference will go an extra day. The vote should be held sometime tomorrow.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: And we'll talk more about flashpoint Najaf in just a few minutes with CNN military analyst Don Shepard. That's about half past the hour right here on LIVE FROM.

NGUYEN: From London now, word that eight of the 13 terror suspects rounded up two weeks ago are now charged with plotting attacks, possibly using radioactive or chemical weapons. Among the eight is an alleged al Qaeda recon and intel specialist who may be linked to the code orange alerts in New York, New Jersey, and Washington.

CNN's Walter Rodgers has all the details, and he joins us now. Walt, what do you know?

WALTER RODGERS, CNN CORRESPONDENT, LONDON: Betty, this is an important case, a very significant case, with ramifications on three continents: South Asia, specifically, Pakistan; Europe, specifically, Britain; and of course, the United States, where these targets are said to have been planned. What we have in Britain is the charging of eight individuals under Britain's Terrorism 2000 Act.

They have been in custody for two weeks now, and this was the deadline for charging them formally, otherwise they had to be released. The British have formally charged them. They will go to trial probably in six to nine months. One of the more interesting of the eight men charged is identified by the British as Dhiren Barot. In point of fact, the Americans know him as Esa al-Hindi, a major al Qaeda operative. The charges against the men include conspiracy to murder and conspiracy to commit a public nuisance. Now, that sounds innocuous; it is actually very serious. Because according to the charges in the British court, the conspiracy to commit public nuisance would have been executed by the use of radioactive weapons, toxic gasses, chemical weapons and explosives.

The targets, according, again, to the British charges, these men had a reconnaissance plan, and they had documents indicating that they had cased, if you will, the New York Stock Exchange, Citigroup in New York, the Prudential building in New Jersey, and also, in Washington, D.C., the International Monetary Fund. I need to stress these are all allegations at this point.

The information here, however, of the alleged targets and the reconnaissance plans is not really all that new. But the fact that these men were brought in in Britain two weeks ago makes this a very significant case. They are going to be going to trial -- Betty.

NGUYEN: Walter, I know the focus right now is on those British charges. But any indication if the U.S. is going to bring about its own charges against these men?

RODGERS: Well, that would be a question better asked of the U.S. Justice Department. But the U.S. Attorney General, John Ashcroft, did say that the British and the Americans, particularly the American FBI, have been working very closely on this case. Indeed, there's a thorough exchange of intelligence between the British and the Americans because they, perhaps, more than any other two nations, realize that they really have a serious war on terror, and the outcome is not at all clear at this point -- Betty.

NGUYEN: CNN's Walter Rodgers, thank you -- Kyra.

PHILLIPS: Now to Capitol Hill, where the secretary of defense is defending his turf against moves to disengage the Pentagon from intelligence. Here's CNN Congressional correspondent Ed Henry with more -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Kyra. That's right, three more Congressional hearings today focusing on the 9/11 Commission's final report. So many hearings, in fact, in August, that they're almost becoming a blur. There was a House hearing today featuring Tom Kean and Lee Hamilton from the 9/11 Commission, a Senate hearing with 9/11 families testifying.

But as you mentioned, that hearing with Defense Secretary Donald Rumsfeld really standing out amid the clutter of so many hearings. That is because he is defending that turf right now. Defense Secretary Rumsfeld controls about 85 percent of the nation's intelligence budget. But in fact, there's a lot of pressure to give that budget power to the National Intelligence Director.

You will remember that Secretary Rumsfeld is in a bit of a tough spot here. He had initially opposed the idea of a National Intelligence Director. He's pushing back hard on not giving budget power, full budget power to this new National Intelligence Director.

He had to take the unusual step at the beginning of his testimony to point out that on some points in his testimony, he would be speaking for himself, not for the administration.

Democrats like Senator Carl Levin really tried to exploit that split between Rumsfeld and President Bush. Take a listen.

(BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D), MICHIGAN: Mr. Secretary, we got specific recommendations...

DONALD RUMSFELD, DEFENSE SECRETARY: I understand.

LEVIN: ... from the 9/11 Commission. I'm quoting them. I just want to ask you your personal agreement or disagreement. If you can't give us that, that's OK, but just say you can't give us a personal yes or no from your perspective.

RUMSFELD: I can't do it with yes or no, that's for sure.

LEVIN: Thank you, thank you.

RUMSFELD: It's a vastly more complex question.

(END VIDEO CLIP)

HENRY: That complexity is leading Rumsfeld to realize that while he did not win the fight of over creation of a National Intelligence Director, he wants to fight out the details of exactly how that director's office will be structured. Here's another exchange between Rumsfeld and Senate Armed Services Chairman John Warner.

(BEGIN VIDEO CLIP)

RUMSFELD: We are still looking at these things...

SEN. JOHN WARNER (R), ARMED SERVICES CHMN.: Well, I'm going to continue to...

RUMSFELD: ... and they're terribly important. And I am not in the position to say anything other than the devil's in the details.

WARNER: All right, I accept that. But the work of the Congress is moving ahead. We've got some momentum in these committees. We're coming up with ideas. And the sooner we can kind of get those guideposts from our present administration, the better we will be able to form our work.

(END VIDEO CLIP)

HENRY: You can hear Chairman Warner there pointing out the fact that on the other side of the issue, people in the intelligence community have been very aggressive about pushing back hard and saying that they believe that a National Intelligence Director should have that full budget power. And in fact, Kean and Hamilton have also been very outspoken about that.

That's why you see Chairman Warner there trying to prod the Bush administration to give a little clearer guidance to the Congress on how they want this new director's office structured. Obviously, this is going to move very quickly when Congress comes back to town at full strength in September and actually deal with the legislation here, Kyra.

PHILLIPS: It will be interesting to see who's up for the job. Ed Henry live from the Hill, thanks so much -- Betty.

NGUYEN: We're receiving amazing video of flash flooding in Great Britain. Check it out. Dozens of cars are swept away by a torrent of water in Boscastle, which is a village southwest of London.

A short burst of rain yesterday caused a wall of water to sweep down the narrow valley, which is a popular tourist destination. Now, seven helicopters scrambled to join that rescue effort. Crews plucked stranded villagers and tourists from rooftops and even the tops of cars. At least 15 people remain unaccounted for.

PHILLIPS: Well, as if things weren't bad enough in hurricane- ravaged Florida, authorities are now fighting "greed in a time of need." That's a quote from the state attorney general, announcing lawsuits against two hotels accused of price gouging.

Overall, officials say the state is bouncing back faster, though, than it did after Andrew. But that's small comfort to the thousands of people who don't have homes or the quarter million plus who still lack power.

That includes everybody in Punta Gorda where, today, we find CNN's Bob Franken. Bob, what's it like?

BOB FRANKEN, CNN CORRESPONDENT: Well, what it's like is, where we are right now has become sort of the center of activity. If you look behind me, you will see, as we've been showing earlier on CNN, the National Guard and a variety of state, local, federal, and private organizations all combining to provide the items necessary for survival for those who have lost their homes, lost their power.

As a matter of fact, a short time ago, some of the units from the National Guard loaded up their trucks and went out into neighborhoods responding to the complaint that a lot of people did not have the wherewithal to come down here. Now, the Homeland Security Secretary Tom Ridge and the Health and Human Services Secretary Tommy Thompson are touring the area now.

They are not stopping here. But the message, every time somebody from the administration opens his mouth, is the federal government does care for you, causing some remembrances of 1992 and Hurricane Andrew, where the first President Bush is said to have suffered political damage when many felt there was an inadequate response to Andrew.

As for the FEMA director now, he is telling people that those scam artists that you were talking about had better watch what they're doing or they're going to end up in jail.

(BEGIN VIDEO CLIP)

MICHAEL BROWN, FEMA DIRECTOR: Folks, if you're out there and you're thinking about doing this, you'd better not, because I've talked to the attorney general in this state. He's going to put you in jail. FEMA fraud inspectors are out here; they'll be watching, and they'll put you in jail. So, leave these disaster victims alone.

(END VIDEO CLIP)

FRANKEN: And they talk about remarkable progress here, Kyra, but that should be put in perspective -- such horrible damage that it's going to be weeks, months, or even longer before full recovery is achieved here -- Kyra.

PHILLIPS: Bob Franken live from Punta Gorda, thanks so much -- Betty.

NGUYEN: The land of Lincoln is moving to free its citizens from the high cost of prescription drugs. More on that now from reporter Chuck Coppola of CNN affiliate WGN in Chicago -- Chuck.

CHUCK COPPOLA, WGN AFFILIATE, CHICAGO: Yes, well, hello. Governor Rod Blagojevich here in Illinois is proposing a plan to import from Canada, Ireland, and England about 100 drugs -- prescription drugs for any Illinois resident regardless of income.

The 100 or so drugs include long term condition drugs, arthritis- treating drugs, things like Lipitor, which sells for $214 for a 30-day supply in the U.S. -- sells in Ireland for about $144, and $158 in England, and $162 in Canada, respectively.

So, there is a lot of support here in Illinois for it. I spoke with many senior citizens who stand to gain quite a lot from this. They say they could estimate about a 25 to 50 percent savings for a lot of their prescription drugs. There are opponents of this as well, as you might well imagine.

The FDA is expressing concern about the safety of these drugs from other countries, and the American Medical Association echoes that, saying patients' safety is their primary concern for unapproved drugs -- Betty.

NGUYEN: Chuck, last year, a study showed that the state could save some $91 million with this plan, and you mentioned safety. What's being done to regulate the safety of these drugs?

COPPOLA: Well, they're going to be using about 35 to 50 different pharmaceutical outlets to do this. They say they will be screened, so that's the first order of checking on this. And as far as the rest of the concerns of this, really, it's a matter of cost, primarily, to Illinois residents.

The State of Illinois also stands to gain from the taxpayers' point of view. There are about 420,000 state workers who would be encouraged to use this plan. And one estimate says that that could save the State of Illinois about $50 million each year.

NGUYEN: Chuck Coppola of WGN in Chicago, thank you very much -- Kyra.

PHILLIPS: Damage estimates in the billions of dollars for Hurricane Charley. In just a few moments, Homeland Security Secretary Tom Ridge expected to talk about his tour of the damage. We're going to bring that to you live.

Oprah Winfrey's got murder on her mind, but it's all part of performing her civic duty. We'll explain.

MICHAEL HOLMES, CNN, ATHENS: And I'm Michael Holmes live in Athens. I'll have a report on Michael Phelps. He still has one record he can make. I'll also have a report on the man in the tutu at the synchronized diving.

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NGUYEN: Here's a reminder for you. Tomorrow night, a CNN special event, Paula Zahn takes the pulse of undecided voters in the battleground state of Ohio. What will make them vote for Bush or Kerry? Well, you can find out tomorrow night at 8:00 Eastern as Paula Zahn hosts "The Undecided Vote," a CNN town hall meeting, live from Ohio.

PHILLIPS: News across America now. Attorneys throwing mud at each other's claims as Michael Jackson sits serenely in a white suit. At issue in yesterday's preliminary hearing, the actions of DA Tom Sneddon in the weeks before bringing molestation charges. And at one point, the judge asked Sneddon not to spar with the defense attorney. That hearing continues today. Jackson's not expected to attend.

In Chicago, proving she's really just a regular citizen, Oprah Winfrey reports for jury duty, picked to sit on a murder trial. That case involves a shooting allegedly sparked after the victim passed a fake $50 bill. Lawyers will do well to make it snappy. Oprah told reporters, "I'm just hoping it doesn't take longer than a week, because I've got shows to do."

Dying for a discount? Well, you know the saying, "you can't take it with you." So, why not make a cheap exit in a Costco casket? The nation's leading wholesale club is test marketing six different models of steel caskets -- suggested retail price, $799.99. I guess they figure if you have room enough to store a 55-gallon drum of mayonnaise, well, you have the space to store a coffin until needed.

NGUYEN: All right, well, a lot of googley eyes on Wall Street as investors get ready to pounce on the much ballyhooed launch of Google on Nasdaq. Is tomorrow G-day? Well, CNN's Mary Snow...

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PHILLIPS: Well, the high stakes battle for Najaf ahead: Why the fighting there is more than a turf war. It's key to the future of democracy in Iraq. Ritual cleansing: Baptisms and a discovery of biblical proportions. We're going to take you inside what's believed to be the cave of John the Baptist.

Also straight ahead, we're expecting an exclusive live interview with Secretary of Homeland Security, Tom Ridge, who's traveling with our Jeanne Meserve. He's touring the damaged areas in Florida. We'll take that live as soon as it happens.

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PHILLIPS: Well, Florida officials are trying to assess the billions of dollars in damages left by Hurricane Charley, and that storm may turn out to have a surprising impact further down the road...

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PHILLIPS: Taking a look now at stories in the news, a famed photographer who covered some of the most pivotal moments in U.S. history is dead. Carl Mydans, one of the first photojournalists for "Life" magazine chronicled events from the Great Depression to war and politics. Mydans was 97-years-old.

President Bush arriving in Philadelphia just moments ago. The president is going to be holding a rally at a Boeing helicopter plant in Ridley Park. We're going to have more on his campaign stop next hour.

British authorities charging eight men on suspicion of planning a terrorist attack in the U.S. The men were captured two weeks ago. Some of them are accused of possessing documents of potential targets such as the New York Stock Exchange. All eight of them appear to be in court tomorrow.

We're keeping you informed, CNN, the most trusted name in news.

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