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Should A National Intel Dir. Control The Intelligence Budget?; Najaf/Baghdad Attacks; Damage To Fla. Citrus Crops; Frey Takes The Stand
Aired August 17, 2004 - 15:00 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: A battle brewing in Washington: The position of National Intelligence Director hasn't even been created yet, but already there's disagreement over whether he or she should control the intelligence budget. Today, the defense secretary offered his perspective to law makers.
Our Pentagon correspondent Barbara Starr is here to fill us in -- Barbara?
BARBARA STARR, CNN CORRESPONDENT: Hello to you, Kyra.
Well, Defense Secretary Donald Rumsfeld sat in a chair before the Senate Armed Services Committee for four hours today with other top officials testifying on proposals for intelligence reform from the 9/11 Commission.
Now the secretary, as expected, refusing to let himself get pinned into a corner about which specific proposals he is supporting. There's a lot of competing ideas in Washington, some from the 9/11 commission, some from Congress, some from the White House.
The secretary saying that basically he did support the White House proposal, of course, for the creation of a National Intelligence Director, but as far as getting pinned down any further, just listen to this exchange between the secretary and Senator John Warner, chairman of the committee.
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, U.S. SECRETARY OF DEFENSE: We are still looking at these things.
(CROSSTALK)
SEN. JOHN WARNER (R), VIRGINIA: Well, I'm going to continue to...
RUMSFELD: They're terribly important. And I am not in the position to say anything other than the devil's in the details. And...
WARNER: 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 guide posts from our present administration, the better we will be able to perform our work.
(END VIDEO CLIP)
STARR: Now the Republican-dominated Congress, of course, wanting to be seen ahead of the Republican convention as moving ahead on intelligence reform.
But some of the critical questions, Kyra, that did come up in the hearing today, what about a National Intelligence Director? What would that person do? How much control would they have over the $40 billion intelligence budget?
Don Rumsfeld now controls about 80 percent of that. Would he give up some of that? Would that new director be able to move agents around the world, task and move satellites around the world for intelligence collection? All a lot of questions to which there are no answers yet.
Now the United States military, of course, is the largest consumer, if you will, of intelligence, and the top military officer, General Richard Myers, sitting next to Rumsfeld, gave his views on all of this, as well.
(BEGIN VIDEO CLIP)
GENERAL RICHARD MYERS, CHAIRMAN OF THE JOINT CHIEFS OF STAFF: There cannot be a czar that just starts pointing and pulling level. There is no Wizard of Oz here that's going to solve this in my opinion. It's got to be a collaborative effort.
(END VIDEO CLIP)
STARR: One of the other key issues that came up at the hearing was this very question of human intelligence. Both Secretary Rumsfeld, General Myers, all making the case that they don't want to just see boxes moved around on the reorganization chart, reorganization for the sake of the bureaucracy.
They want to see changes that will fix specific problems. And as far as human intelligence goes, what they say is they still need more human intelligence assets, the type of people that can penetrate al Qaeda and see what's really going on -- Kyra?
PHILLIPS: Barbara, there's so much talk about this director. But is there a timeline for nominations, or a selection? Any names out there?
STARR: Well, not at the moment. All of this is going to require legislative authority. Now there's a lot of political momentum in Congress to get it done this year, before the presidential elections, certainly. The Republicans have made it very clear they do want to be seen as moving ahead.
But what's really interesting, as these hearings progress, most of the senators, most of the congressmen are beginning to realize, of course, they know it's a lot more complicated than it appears on the surface. They're very cautious about not creating more problems than they may solve. So, it all may take a little bit longer than anybody anticipates, and nobody's making any real predictions just yet.
PHILLIPS: All right. Barbara Starr live from the Pentagon. Thanks.
BETTY NGUYEN, CNN ANCHOR: Warplanes and peace talks in Najaf. A scaled-back, long delayed delegation of Iraqi envoys rode 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 as in 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)
NGUYEN: Also overseas, today we received amazing video of flash flooding in Great Britain. Take a look. 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 that serves as a popular tourist destination. Seven helicopters scrambled to join the rescue effort there. Crews even plucked stranded villagers and tourists from rooftops and the tops of cars. At least 15 people remain unaccounted for.
PHILLIPS: Health and Human Services Secretary Tommy Thompson tells CNN he's releasing just more than $11 million in additional disaster relief for victims of Hurricane Charley. Thompson and Homeland Security Secretary Tom Ridge flew to Florida today to see the damage firsthand.
CNN's Bob Franken is live from Punta Gorda, Florida, with the latest -- Bob?
BOB FRANKEN, CNN CORRESPONDENT: Well, Kyra, this point in back of us is really a focal point of the effort. Right now, the first issue is just to help people survive. With hundreds of thousands going without electricity or without homes, so many of the essentials, so many of the things we take for granted, no longer can be taken for granted by people here.
Many of them come to the station. We've seen a steady line of cars for the last couple of days picking up such things as ice, nonperishable food, portable toilets, all of that type of thing, just to get by.
But there are any number of people who can't get down here. So, after hearing complaints, National Guard troops fanned out to some of the neighborhoods that were really devastated by the hurricane -- of course, the worst being in some of the trailer parks. People just have not been able to get out so they brought supplies to them.
And all of this part of an effort that's being coordinated at the very top levels of government. We've seen a steady parade of administration officials into the area, this particular area which was hit so hard, and they all have a consistent message: "We care."
(BEGIN VIDEO CLIP)
TOM RIDGE, U.S. SECRETARY FOR HOMELAND SECURITY: Sometimes I think that America's best qualities as a country surface when we're asked to respond to a tragedy. And clearly this is just another example.
When you have literally people coming from around the country to help the citizens of Florida, and you have Floridians leaving other parts of the state to come in and help their fellow citizens. And I just want to assure you that from the federal government -- from our perspective, we are prepared to work together.
Secretary Thompson's down here. He's going to talk to you a little bit about what he's been doing today and why he's here. The Corps of Engineers may be called in to help with debris removal. I mean, there's just a lot of assets that we can bring to bear in partnership with Governor Bush and local officials, as well. (END VIDEO CLIP)
FRANKEN: And Homeland Security Secretary Tom Ridge just the latest, as I said, of officials coming in here. There's also another kind of reality about this type of thing and that is the scam artists, those who come in and try and take advantage of the situation.
The Attorney General of Florida announced today two prosecutions. The first of what he said will be many against price gougers in this particular case, alleged price gougers, including two hotels, one in West Palm Beach, one in (INAUDIBLE).
He says he's received thousands of complaints. There's a warning by other officials that those contractors who come in and try and make a quick buck should worry out, in the words of the director of the Federal Emergency Management Agency, if you're a scam artist, you will be jailed -- Kyra?
PHILLIPS: Bob Franken, live from Punta Gorda. Thanks so much.
Well Hurricane Charley tore a path of destruction right through the heart of Florida's multimillion dollar citrus industry. Strong winds snapped thousands of trees, oranges and grapefruit. They were thrown to the ground. Florida's agricultural commissioner says that the main damage appears to be the oranges used to make juice.
(BEGIN VIDEO CLIP)
CHARLES BRONSON, FLA. AGRICULTURE COMMISSIONER: We won't know the total damages for another four to six weeks but we believe that in some areas I saw yesterday, we will lose anywhere from 40 percent total loss of oranges up to 100 percent in certain areas. The nursery industry also was damaged very heavily by this storm.
(END VIDEO CLIP)
PHILLIPS: A third of Florida's citrus crop is grown in the area hit by that storm.
More drama in the courtroom today as Amber Frey reveals more of Scott Peterson's secrets. We're going to take you live to the courthouse. Plus Oprah Winfrey gives her opinions all the time. Find out why her next verdict may be a little different. American favorites locked in a race for number one. We're going to meet the candidates.
(COMMERCIAL BREAK)
JACQUI JERAS, CNN METEOROLOGIST: Hello, everyone. I'm meteorologist Jacqui Jeras. Some wet weather across parts of the West today throughout the Great Basin and the inner-mountain West. Primarily, the rainfall may be heavy at times and some more flash flooding will be possible in south central parts of New Mexico. We'll also be watching northern parts of Nevada and central Idaho.
Wet weather across the southeast. Some showers and thunderstorms here. Otherwise, beautiful weather into the northeast with plenty of sunshine. Temperatures very typical for your summer weather, with highs in the lower 80s. We'll see 80 degrees in Minneapolis, 91 in Dallas, 99 degrees in Phoenix. The cloud cover and wet weather keeping you a little bit cooler.
CNN LIVE FROM will continue right after this.
(COMMERCIAL BREAK)
PHILLIPS: Prosecutors in the Scott Peterson murder case have had their turn with Amber Frey. Will the defense get a chance now to question Peterson's former lover?
CNN's Rusty Dornin live from Redwood City, California, with all the drama.
Hi, Rusty.
RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, they just broke for the noon recess. The judge advised what is becoming a very tape-weary jury that the final calls will be heard this afternoon, and then tomorrow the cross-examination begins.
In these final calls, which range from about mid-January to February of 2003, you hear the tension building in the conversations. Amber Frey is berating Scott Peterson, really peppering him with questions. He's very angry. Was he involved with the disappearance of his wife? Why did he get involved with her? Why did he continue to lie? The questions continue.
Scott Peterson keeps apologizing, telling her that he does care about her and keeps saying that he is sorry that he did lie to her, and that she became involved with him.
Late yesterday, jurors heard a tape where Amber Frey expresses concern about her own safety.
(BEGIN VIDEO CLIP)
AMBER FREY, GIRLFRIEND OF SCOTT PETERSON: (INAUDIBLE) in fear of my own life?
SCOTT PETERSON, DEFENDANT IN MURDER TRIAL: Not from me, Amber.
FREY: Not from you?
PETERSON: No.
FREY: From possibly whoever took Laci? Should I be in fear of them?
PETERSON: I don't think so. I don't see why.
(END VIDEO CLIP)
DORNIN: Amber Frey took the stand briefly this morning and described how, on January 24th, a friend called her, told her that a local radio station was broadcasting her name, saying that she was the girlfriend of Scott Peterson.
She says she called Modesto police, they picked her up and that's when she went public, came out before reporters and admitted that she did have an affair with Scott Peterson.
In another conversation jurors heard this morning, on February 7th, Peterson tells her he wants a face-to-face meeting with her, just really almost begs her to meet him somewhere. And he says, "Look, I am not a monster." She says, "I know that, Scott."
A little later on this afternoon also they will be hearing the final conversation where she says, "Please do not call me anymore." Then tomorrow, it will be defense attorney Mark Geragos's turn, and apparently they're going to have some kind of PowerPoint presentation.
They were talking about that in court. And we'll just have to see how long he's going to keep her on the stand -- Kyra?
PHILLIPS: All right, Rusty Dornin, we'll check in with you tomorrow.
NGUYEN: In other high profile legal dealings, the gloves came off at a preliminary hearing for Michael Jackson. Jackson didn't take the stand but his accuser, D.A. Tom Sneddon, did.
The defense claims Sneddon violated attorney-client privilege when he searched a private investigator's office. Sneddon denied his actions so vigorously that the judge asked him at one point, quote, "not to spar with the defense."
Meanwhile, Oprah Winfrey's doing her civic duty on Chicago's south side. The TV star is in the jury box after being chosen to sit in judgment on a murder case involving a bogus $50 bill. Oprah told reporters she hopes the trial doesn't take longer than a week because she's got shows to do.
Well, is he as good as gold? Michael Phelps competes in two more events today. Find out how he finished, next.
Plus, the initial public offering that has investors Googley- eyed. We'll get details live from the New York Stock Exchange.
And why campaigning for votes can bring out all the nuts. Those stories straight ahead.
(COMMERCIAL BREAK)
NGUYEN: All right. Chalk one up, no make that four, for U.S. athletes in Athens. The swimming sensation Mark Phelps won his second gold medal in the men's 200 meter butterfly today. He set a new Olympic record but missed his own world record time by about a tenth of a second.
Phelps then led the U.S. to victory in the there the men's 4 by 200 meter freestyle relay. The team set a new U.S. record time. Australia won the silver, Italy the bronze. And American Mariel Zagunis won the fencing gold medal in women's saber. Fellow American Sada Jacobson took home the bronze. The medals are the United States's first in women's fencing.
PHILLIPS: A weekend retreat ended on a high note for a Minnesota couple. David and Mary Beth Wenell came home from a stay at their cabin to learn that, well, they won $98 million. They're taking a lump sum payment, which is about $36 million after taxes.
She's an executive assistant. He does clinical research work, but not for long. They're quitting their jobs, they say. And they might buy a new house on the prairie. But believe me, it won't be little.
NGUYEN: How great is that? Take a vacation, win a million bucks. That's the life.
PHILLIPS: There you go.
NGUYEN: Well, get ready for Google. The Internet search giant is revving its IPO engine.
PHILLIPS: Rhonda Schaffler with more from the New York Stock Exchange.
Rhonda?
RHONDA SCHAFFLER, CNNFN CORRESPONDENT: Hi, again, Kyra and Betty. And we know there have been months of anticipation. So, tomorrow, finally, could be Google's first day as a publicly-traded company.
Shares of Google are expected to price after the close of trading today, that's if federal regulators give the company the go-ahead later this afternoon. And that means Google could start trading on the Nasdaq as early as tomorrow.
It will signal the end to a four-month saga in which Google's IPO process was filled with controversy and missteps. If everything goes as planned, though, Google helps to sell nearly 26 million shares, priced between $108 and $135. That would raise about $3 billion. But many analysts are saying the price is far too high for average investors.
As far as where investors are putting their money today, stocks edging higher, trying to extend yesterday's rally. Dow Industrial Average up 15 points. The Nasdaq is adding three-quarters of one percent. A renewed surge in the price of oil, though, is holding back stronger gains.
Prices rose on concerns over exports, from troubled Russian oil company Yukos, as well as fears of sabotage in Iraq. Crude oil settled up 70 cents at a record $46.75 a barrel. That's it from Wall Street.
Back now to Betty.
NGUYEN: All right, we want to talk a little bit about Michael Phelps, not Mark Phelps. We mentioned his name as Mark a little bit earlier. He won a gold medal in the 200-meter butterfly today. We should all know his name by now. He's going to be a household name with all these wins in Athens -- Kyra?
PHILLIPS: Well, the race for the White House is not the only election capturing attention these days. Some of the nation's most familiar characters are squaring off to determine people's most beloved advertising icon.
Here's CNN's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: Talk about convention bounce. It's the Michelin man versus the Pillsbury Doughboy.
PILLSBURY DOUGHBOY: Sure.
JOLLY GREEN GIANT: Ho, ho, ho.
MOOS: It's the Jolly Green Giant versus Tony the Tiger.
TONY THE TIGER, FROSTED FLAKES: They're great.
MOOS: No dirty tricks for Mr. Clean.
UNIDENTIFIED SINGERS, MR. CLEAN COMMERCIAL: Mr. Clean gets rid of dirt and grime...
MOOS: But will Mr. Clean be able to get rid of Mr. Peanut?
UNIDENTIFIED FEMALE: Sign the peanut.
UNIDENTIFIED MALE: He's one of the few figures in America that literally knows he's nuts.
MOOS: There were campaign buttons, hats and posters. Crack the vote?
AFLAC DUCK: AFLAC!
MOOS: That's the AFLAC duck in the jaws of Charlie the Tuna. There are 26 candidates in the race for most beloved advertising icon. You can cast your vote online.
UNIDENTIFIED FEMALE: I used to like Tony the Tiger when I was little.
MOOS: Let's get him over here. Sorry, Charlie. You're out of the picture.
CHARLIE THE TUNA: Hey.
ANNOUNCER IN STARKIST COMMERCIAL: Sorry, Charlie.
UNIDENTIFIED FEMALE: Oh, I remember you when I was little.
TONY THE TIGER: Frosted Flakes are great.
UNIDENTIFIED FEMALE: To tell you the truth, I never had his cereal. I just liked Tony.
MOOS: The icons gathered gingerly on the steps of New York's City Hall, where they were greeted by a former mayor who denied resembling Mr. Clean.
ED KOCH, FORMER NEW YORK MAYOR: I am not bald. I am balding.
MOOS: But if you add the earring -- The point of the contest seems to be to advertise advertising. At the ripe age of 60, this icon is looking good.
UNIDENTIFIED FEMALE: Your Chiquita ...
MOOS: Well, who did you think you were talking to?
WOMAN IN CHIQUITA BANANA OUTFIT: Look at all the fruit on my head.
UNIDENTIFIED FEMALE: I thought I was talking to Carmen Miranda. That's my days.
CHIQUITA BANANA: You can put them in a salad. You can put it in a pie.
UNIDENTIFIED MALE: Mr. Clean will clean your whole house.
MOOS: I know this guy was leaning towards voting for Mr. Clean.
Are you having second thoughts about Mr. Clean?
UNIDENTIFIED MALE: Oh, you know. Yes, there's a lot to be said for Chiquita Banana.
MOOS: It drove security bananas when Mr. Peanut set off a metal detector.
I'd check this guy's hat.
When things are so bad they have to wand the Mr. Peanut, the world really has gone nuts.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: Well, that wraps up this edition of LIVE FROM.
NGUYEN: INSIDE POLITICS is next. And Candy Crowley is in for Judy Woodruff today. Hi, Candy.
CANDY CROWLEY, CNN ANCHOR: Hi, how are you, Betty? Good to see both of you.
Fighting words take center stage today in the battle for the White House as the vice president is called a "coward" for not serving in Vietnam. We'll take a look at how important having military service on the resume is when running for office.
Plus, whether it's Crawford, Nantucket, Kennebunkport, or Pittsburgh, our Bruce Morton takes a look at what vacations tell us about a presidential candidate. INSIDE POLITICS begins in just a moment.
(COMMERCIAL BREAK)
NGUYEN: Now in the news, ending the standoff in Najaf. An eight-member delegation is in the holy city offering a peace plan to rebel cleric Muqtada al-Sadr and his supporters. Meanwhile, the fighting continues with reports U.S. warplanes bombed near the vast cemetery next to the revered Imam Ali mosque. The latest on the fighting and the peace mission just 90 minutes away on WOLF BLITZER REPORTS. That is at 5:00 p.m. Eastern.
Meanwhile, the secretary of defense was on the Hill today talking about intelligence reform in the wake of 9/11. Lawmakers are considering the creation of a new National Intelligence Director post. Donald Rumsfeld urged caution, though, saying lawmakers must be careful not to create new problems for the Pentagon's intelligence agencies.
Highlights next on INSIDE POLITICS. Now Candy Crowley filling in today on Judy Woodruff's INSIDE POLITICS.
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Aired August 17, 2004 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: A battle brewing in Washington: The position of National Intelligence Director hasn't even been created yet, but already there's disagreement over whether he or she should control the intelligence budget. Today, the defense secretary offered his perspective to law makers.
Our Pentagon correspondent Barbara Starr is here to fill us in -- Barbara?
BARBARA STARR, CNN CORRESPONDENT: Hello to you, Kyra.
Well, Defense Secretary Donald Rumsfeld sat in a chair before the Senate Armed Services Committee for four hours today with other top officials testifying on proposals for intelligence reform from the 9/11 Commission.
Now the secretary, as expected, refusing to let himself get pinned into a corner about which specific proposals he is supporting. There's a lot of competing ideas in Washington, some from the 9/11 commission, some from Congress, some from the White House.
The secretary saying that basically he did support the White House proposal, of course, for the creation of a National Intelligence Director, but as far as getting pinned down any further, just listen to this exchange between the secretary and Senator John Warner, chairman of the committee.
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, U.S. SECRETARY OF DEFENSE: We are still looking at these things.
(CROSSTALK)
SEN. JOHN WARNER (R), VIRGINIA: Well, I'm going to continue to...
RUMSFELD: They're terribly important. And I am not in the position to say anything other than the devil's in the details. And...
WARNER: 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 guide posts from our present administration, the better we will be able to perform our work.
(END VIDEO CLIP)
STARR: Now the Republican-dominated Congress, of course, wanting to be seen ahead of the Republican convention as moving ahead on intelligence reform.
But some of the critical questions, Kyra, that did come up in the hearing today, what about a National Intelligence Director? What would that person do? How much control would they have over the $40 billion intelligence budget?
Don Rumsfeld now controls about 80 percent of that. Would he give up some of that? Would that new director be able to move agents around the world, task and move satellites around the world for intelligence collection? All a lot of questions to which there are no answers yet.
Now the United States military, of course, is the largest consumer, if you will, of intelligence, and the top military officer, General Richard Myers, sitting next to Rumsfeld, gave his views on all of this, as well.
(BEGIN VIDEO CLIP)
GENERAL RICHARD MYERS, CHAIRMAN OF THE JOINT CHIEFS OF STAFF: There cannot be a czar that just starts pointing and pulling level. There is no Wizard of Oz here that's going to solve this in my opinion. It's got to be a collaborative effort.
(END VIDEO CLIP)
STARR: One of the other key issues that came up at the hearing was this very question of human intelligence. Both Secretary Rumsfeld, General Myers, all making the case that they don't want to just see boxes moved around on the reorganization chart, reorganization for the sake of the bureaucracy.
They want to see changes that will fix specific problems. And as far as human intelligence goes, what they say is they still need more human intelligence assets, the type of people that can penetrate al Qaeda and see what's really going on -- Kyra?
PHILLIPS: Barbara, there's so much talk about this director. But is there a timeline for nominations, or a selection? Any names out there?
STARR: Well, not at the moment. All of this is going to require legislative authority. Now there's a lot of political momentum in Congress to get it done this year, before the presidential elections, certainly. The Republicans have made it very clear they do want to be seen as moving ahead.
But what's really interesting, as these hearings progress, most of the senators, most of the congressmen are beginning to realize, of course, they know it's a lot more complicated than it appears on the surface. They're very cautious about not creating more problems than they may solve. So, it all may take a little bit longer than anybody anticipates, and nobody's making any real predictions just yet.
PHILLIPS: All right. Barbara Starr live from the Pentagon. Thanks.
BETTY NGUYEN, CNN ANCHOR: Warplanes and peace talks in Najaf. A scaled-back, long delayed delegation of Iraqi envoys rode 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 as in 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)
NGUYEN: Also overseas, today we received amazing video of flash flooding in Great Britain. Take a look. 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 that serves as a popular tourist destination. Seven helicopters scrambled to join the rescue effort there. Crews even plucked stranded villagers and tourists from rooftops and the tops of cars. At least 15 people remain unaccounted for.
PHILLIPS: Health and Human Services Secretary Tommy Thompson tells CNN he's releasing just more than $11 million in additional disaster relief for victims of Hurricane Charley. Thompson and Homeland Security Secretary Tom Ridge flew to Florida today to see the damage firsthand.
CNN's Bob Franken is live from Punta Gorda, Florida, with the latest -- Bob?
BOB FRANKEN, CNN CORRESPONDENT: Well, Kyra, this point in back of us is really a focal point of the effort. Right now, the first issue is just to help people survive. With hundreds of thousands going without electricity or without homes, so many of the essentials, so many of the things we take for granted, no longer can be taken for granted by people here.
Many of them come to the station. We've seen a steady line of cars for the last couple of days picking up such things as ice, nonperishable food, portable toilets, all of that type of thing, just to get by.
But there are any number of people who can't get down here. So, after hearing complaints, National Guard troops fanned out to some of the neighborhoods that were really devastated by the hurricane -- of course, the worst being in some of the trailer parks. People just have not been able to get out so they brought supplies to them.
And all of this part of an effort that's being coordinated at the very top levels of government. We've seen a steady parade of administration officials into the area, this particular area which was hit so hard, and they all have a consistent message: "We care."
(BEGIN VIDEO CLIP)
TOM RIDGE, U.S. SECRETARY FOR HOMELAND SECURITY: Sometimes I think that America's best qualities as a country surface when we're asked to respond to a tragedy. And clearly this is just another example.
When you have literally people coming from around the country to help the citizens of Florida, and you have Floridians leaving other parts of the state to come in and help their fellow citizens. And I just want to assure you that from the federal government -- from our perspective, we are prepared to work together.
Secretary Thompson's down here. He's going to talk to you a little bit about what he's been doing today and why he's here. The Corps of Engineers may be called in to help with debris removal. I mean, there's just a lot of assets that we can bring to bear in partnership with Governor Bush and local officials, as well. (END VIDEO CLIP)
FRANKEN: And Homeland Security Secretary Tom Ridge just the latest, as I said, of officials coming in here. There's also another kind of reality about this type of thing and that is the scam artists, those who come in and try and take advantage of the situation.
The Attorney General of Florida announced today two prosecutions. The first of what he said will be many against price gougers in this particular case, alleged price gougers, including two hotels, one in West Palm Beach, one in (INAUDIBLE).
He says he's received thousands of complaints. There's a warning by other officials that those contractors who come in and try and make a quick buck should worry out, in the words of the director of the Federal Emergency Management Agency, if you're a scam artist, you will be jailed -- Kyra?
PHILLIPS: Bob Franken, live from Punta Gorda. Thanks so much.
Well Hurricane Charley tore a path of destruction right through the heart of Florida's multimillion dollar citrus industry. Strong winds snapped thousands of trees, oranges and grapefruit. They were thrown to the ground. Florida's agricultural commissioner says that the main damage appears to be the oranges used to make juice.
(BEGIN VIDEO CLIP)
CHARLES BRONSON, FLA. AGRICULTURE COMMISSIONER: We won't know the total damages for another four to six weeks but we believe that in some areas I saw yesterday, we will lose anywhere from 40 percent total loss of oranges up to 100 percent in certain areas. The nursery industry also was damaged very heavily by this storm.
(END VIDEO CLIP)
PHILLIPS: A third of Florida's citrus crop is grown in the area hit by that storm.
More drama in the courtroom today as Amber Frey reveals more of Scott Peterson's secrets. We're going to take you live to the courthouse. Plus Oprah Winfrey gives her opinions all the time. Find out why her next verdict may be a little different. American favorites locked in a race for number one. We're going to meet the candidates.
(COMMERCIAL BREAK)
JACQUI JERAS, CNN METEOROLOGIST: Hello, everyone. I'm meteorologist Jacqui Jeras. Some wet weather across parts of the West today throughout the Great Basin and the inner-mountain West. Primarily, the rainfall may be heavy at times and some more flash flooding will be possible in south central parts of New Mexico. We'll also be watching northern parts of Nevada and central Idaho.
Wet weather across the southeast. Some showers and thunderstorms here. Otherwise, beautiful weather into the northeast with plenty of sunshine. Temperatures very typical for your summer weather, with highs in the lower 80s. We'll see 80 degrees in Minneapolis, 91 in Dallas, 99 degrees in Phoenix. The cloud cover and wet weather keeping you a little bit cooler.
CNN LIVE FROM will continue right after this.
(COMMERCIAL BREAK)
PHILLIPS: Prosecutors in the Scott Peterson murder case have had their turn with Amber Frey. Will the defense get a chance now to question Peterson's former lover?
CNN's Rusty Dornin live from Redwood City, California, with all the drama.
Hi, Rusty.
RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, they just broke for the noon recess. The judge advised what is becoming a very tape-weary jury that the final calls will be heard this afternoon, and then tomorrow the cross-examination begins.
In these final calls, which range from about mid-January to February of 2003, you hear the tension building in the conversations. Amber Frey is berating Scott Peterson, really peppering him with questions. He's very angry. Was he involved with the disappearance of his wife? Why did he get involved with her? Why did he continue to lie? The questions continue.
Scott Peterson keeps apologizing, telling her that he does care about her and keeps saying that he is sorry that he did lie to her, and that she became involved with him.
Late yesterday, jurors heard a tape where Amber Frey expresses concern about her own safety.
(BEGIN VIDEO CLIP)
AMBER FREY, GIRLFRIEND OF SCOTT PETERSON: (INAUDIBLE) in fear of my own life?
SCOTT PETERSON, DEFENDANT IN MURDER TRIAL: Not from me, Amber.
FREY: Not from you?
PETERSON: No.
FREY: From possibly whoever took Laci? Should I be in fear of them?
PETERSON: I don't think so. I don't see why.
(END VIDEO CLIP)
DORNIN: Amber Frey took the stand briefly this morning and described how, on January 24th, a friend called her, told her that a local radio station was broadcasting her name, saying that she was the girlfriend of Scott Peterson.
She says she called Modesto police, they picked her up and that's when she went public, came out before reporters and admitted that she did have an affair with Scott Peterson.
In another conversation jurors heard this morning, on February 7th, Peterson tells her he wants a face-to-face meeting with her, just really almost begs her to meet him somewhere. And he says, "Look, I am not a monster." She says, "I know that, Scott."
A little later on this afternoon also they will be hearing the final conversation where she says, "Please do not call me anymore." Then tomorrow, it will be defense attorney Mark Geragos's turn, and apparently they're going to have some kind of PowerPoint presentation.
They were talking about that in court. And we'll just have to see how long he's going to keep her on the stand -- Kyra?
PHILLIPS: All right, Rusty Dornin, we'll check in with you tomorrow.
NGUYEN: In other high profile legal dealings, the gloves came off at a preliminary hearing for Michael Jackson. Jackson didn't take the stand but his accuser, D.A. Tom Sneddon, did.
The defense claims Sneddon violated attorney-client privilege when he searched a private investigator's office. Sneddon denied his actions so vigorously that the judge asked him at one point, quote, "not to spar with the defense."
Meanwhile, Oprah Winfrey's doing her civic duty on Chicago's south side. The TV star is in the jury box after being chosen to sit in judgment on a murder case involving a bogus $50 bill. Oprah told reporters she hopes the trial doesn't take longer than a week because she's got shows to do.
Well, is he as good as gold? Michael Phelps competes in two more events today. Find out how he finished, next.
Plus, the initial public offering that has investors Googley- eyed. We'll get details live from the New York Stock Exchange.
And why campaigning for votes can bring out all the nuts. Those stories straight ahead.
(COMMERCIAL BREAK)
NGUYEN: All right. Chalk one up, no make that four, for U.S. athletes in Athens. The swimming sensation Mark Phelps won his second gold medal in the men's 200 meter butterfly today. He set a new Olympic record but missed his own world record time by about a tenth of a second.
Phelps then led the U.S. to victory in the there the men's 4 by 200 meter freestyle relay. The team set a new U.S. record time. Australia won the silver, Italy the bronze. And American Mariel Zagunis won the fencing gold medal in women's saber. Fellow American Sada Jacobson took home the bronze. The medals are the United States's first in women's fencing.
PHILLIPS: A weekend retreat ended on a high note for a Minnesota couple. David and Mary Beth Wenell came home from a stay at their cabin to learn that, well, they won $98 million. They're taking a lump sum payment, which is about $36 million after taxes.
She's an executive assistant. He does clinical research work, but not for long. They're quitting their jobs, they say. And they might buy a new house on the prairie. But believe me, it won't be little.
NGUYEN: How great is that? Take a vacation, win a million bucks. That's the life.
PHILLIPS: There you go.
NGUYEN: Well, get ready for Google. The Internet search giant is revving its IPO engine.
PHILLIPS: Rhonda Schaffler with more from the New York Stock Exchange.
Rhonda?
RHONDA SCHAFFLER, CNNFN CORRESPONDENT: Hi, again, Kyra and Betty. And we know there have been months of anticipation. So, tomorrow, finally, could be Google's first day as a publicly-traded company.
Shares of Google are expected to price after the close of trading today, that's if federal regulators give the company the go-ahead later this afternoon. And that means Google could start trading on the Nasdaq as early as tomorrow.
It will signal the end to a four-month saga in which Google's IPO process was filled with controversy and missteps. If everything goes as planned, though, Google helps to sell nearly 26 million shares, priced between $108 and $135. That would raise about $3 billion. But many analysts are saying the price is far too high for average investors.
As far as where investors are putting their money today, stocks edging higher, trying to extend yesterday's rally. Dow Industrial Average up 15 points. The Nasdaq is adding three-quarters of one percent. A renewed surge in the price of oil, though, is holding back stronger gains.
Prices rose on concerns over exports, from troubled Russian oil company Yukos, as well as fears of sabotage in Iraq. Crude oil settled up 70 cents at a record $46.75 a barrel. That's it from Wall Street.
Back now to Betty.
NGUYEN: All right, we want to talk a little bit about Michael Phelps, not Mark Phelps. We mentioned his name as Mark a little bit earlier. He won a gold medal in the 200-meter butterfly today. We should all know his name by now. He's going to be a household name with all these wins in Athens -- Kyra?
PHILLIPS: Well, the race for the White House is not the only election capturing attention these days. Some of the nation's most familiar characters are squaring off to determine people's most beloved advertising icon.
Here's CNN's Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: Talk about convention bounce. It's the Michelin man versus the Pillsbury Doughboy.
PILLSBURY DOUGHBOY: Sure.
JOLLY GREEN GIANT: Ho, ho, ho.
MOOS: It's the Jolly Green Giant versus Tony the Tiger.
TONY THE TIGER, FROSTED FLAKES: They're great.
MOOS: No dirty tricks for Mr. Clean.
UNIDENTIFIED SINGERS, MR. CLEAN COMMERCIAL: Mr. Clean gets rid of dirt and grime...
MOOS: But will Mr. Clean be able to get rid of Mr. Peanut?
UNIDENTIFIED FEMALE: Sign the peanut.
UNIDENTIFIED MALE: He's one of the few figures in America that literally knows he's nuts.
MOOS: There were campaign buttons, hats and posters. Crack the vote?
AFLAC DUCK: AFLAC!
MOOS: That's the AFLAC duck in the jaws of Charlie the Tuna. There are 26 candidates in the race for most beloved advertising icon. You can cast your vote online.
UNIDENTIFIED FEMALE: I used to like Tony the Tiger when I was little.
MOOS: Let's get him over here. Sorry, Charlie. You're out of the picture.
CHARLIE THE TUNA: Hey.
ANNOUNCER IN STARKIST COMMERCIAL: Sorry, Charlie.
UNIDENTIFIED FEMALE: Oh, I remember you when I was little.
TONY THE TIGER: Frosted Flakes are great.
UNIDENTIFIED FEMALE: To tell you the truth, I never had his cereal. I just liked Tony.
MOOS: The icons gathered gingerly on the steps of New York's City Hall, where they were greeted by a former mayor who denied resembling Mr. Clean.
ED KOCH, FORMER NEW YORK MAYOR: I am not bald. I am balding.
MOOS: But if you add the earring -- The point of the contest seems to be to advertise advertising. At the ripe age of 60, this icon is looking good.
UNIDENTIFIED FEMALE: Your Chiquita ...
MOOS: Well, who did you think you were talking to?
WOMAN IN CHIQUITA BANANA OUTFIT: Look at all the fruit on my head.
UNIDENTIFIED FEMALE: I thought I was talking to Carmen Miranda. That's my days.
CHIQUITA BANANA: You can put them in a salad. You can put it in a pie.
UNIDENTIFIED MALE: Mr. Clean will clean your whole house.
MOOS: I know this guy was leaning towards voting for Mr. Clean.
Are you having second thoughts about Mr. Clean?
UNIDENTIFIED MALE: Oh, you know. Yes, there's a lot to be said for Chiquita Banana.
MOOS: It drove security bananas when Mr. Peanut set off a metal detector.
I'd check this guy's hat.
When things are so bad they have to wand the Mr. Peanut, the world really has gone nuts.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: Well, that wraps up this edition of LIVE FROM.
NGUYEN: INSIDE POLITICS is next. And Candy Crowley is in for Judy Woodruff today. Hi, Candy.
CANDY CROWLEY, CNN ANCHOR: Hi, how are you, Betty? Good to see both of you.
Fighting words take center stage today in the battle for the White House as the vice president is called a "coward" for not serving in Vietnam. We'll take a look at how important having military service on the resume is when running for office.
Plus, whether it's Crawford, Nantucket, Kennebunkport, or Pittsburgh, our Bruce Morton takes a look at what vacations tell us about a presidential candidate. INSIDE POLITICS begins in just a moment.
(COMMERCIAL BREAK)
NGUYEN: Now in the news, ending the standoff in Najaf. An eight-member delegation is in the holy city offering a peace plan to rebel cleric Muqtada al-Sadr and his supporters. Meanwhile, the fighting continues with reports U.S. warplanes bombed near the vast cemetery next to the revered Imam Ali mosque. The latest on the fighting and the peace mission just 90 minutes away on WOLF BLITZER REPORTS. That is at 5:00 p.m. Eastern.
Meanwhile, the secretary of defense was on the Hill today talking about intelligence reform in the wake of 9/11. Lawmakers are considering the creation of a new National Intelligence Director post. Donald Rumsfeld urged caution, though, saying lawmakers must be careful not to create new problems for the Pentagon's intelligence agencies.
Highlights next on INSIDE POLITICS. Now Candy Crowley filling in today on Judy Woodruff's INSIDE POLITICS.
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