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Frey Will Take The Stand Monday After Today's Delay; Al-Sadr Purportedly Accepted Baghdad's Demand To Disband Militia; More NJ Gov. Scandals
Aired August 18, 2004 - 14:59 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.
KYRA PHILLIPS, CNN ANCHOR: Ending the standoff in the Iraqi city of Najaf, a radical Shiite cleric is bowing to the demands of the Iraqi National Congress (sic) -- Conference, rather, at least on paper. Muqtada al-Sadr says he will leave the Imam Ali Mosque, disband his army and join the political process. But when? We'll have an update.
The Iraqi prisoner abuse scandal widens. Military sources tell CNN a new Army report will recommend possible disciplinary action against about two dozen members of the military intelligence brigade in Iraq's Abu Ghraib Prison. The report by Major General George Fay could be released as early as Friday.
The prosecution's star witness in the Scott Peterson murder trial won't face cross-examination by his lawyers today, that has been put off until Monday because of what the judge is calling a potential development in the case. We're going to go live to the courthouse straight ahead.
Little Rilya Wilson vanished without a trace in Florida more than two years ago. Today Miami police charged her former caregiver, Geralyn Graham, with kidnapping and child abuse. Graham maintains she handed Rilya over to child welfare workers and never saw her again. Police say they never believed her story. Rilya has not been found.
FREDRICKA WHITFIELD, CNN ANCHOR: Well, let's start with the latest in the Scott Peterson trial. The judge sent the jury home early today after a so-called "potential development."
CNN's Rusty Dornin is standing by live in Redwood City, California, with the latest -- Rusty?
RUSTY DORNIN, CNN CORRESPONDENT: Fredricka, more surprises and somewhat of a mystery that brought another abrupt halt to the proceedings today. Amber Frey had arrived with her attorney ready, willing and able, according to her, to take the stand today.
But after about an hour behind closed doors, the judge came in and gave a very brief speech to the jury. He says there's been a potential development in the case, he said, that has to be checked out.
He dismissed the jury. He said but they definitely would resume proceedings tomorrow and there would be three witnesses on the stand. Now, we do believe that this halt and this new development has to do with Amber Frey's testimony, and it might have been sparked by the defense as Scott Peterson's family says they are in on the secret.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Anybody have an idea why we're out of court today?
UNIDENTIFIED MALE: Yes, but we can't say.
UNIDENTIFIED FEMALE: It's not fun that things get slowed down, but, you know, we have to trust that things are being done right. The judge is -- he knows what he's doing.
(END VIDEO CLIP)
DORNIN: Amber Frey will be back on the stand on Monday for that highly anticipated cross-examination by defense attorney Mark Geragos -- Fredricka?
WHITFIELD: In the meantime, Rusty, we heard from Gloria Allred, the attorney for Amber Frey, who expressed that Amber Frey was very disappointed because she started the day ready, and able, and willing to be cross-examined.
DORNIN: That's right. She said that she's very frustrated. This has been very difficult for her emotionally, of course. She's up her with her baby, nursing her baby, even throughout the court days.
She was ready to do this. She really had steeled herself for it. Given her own attorney saying no one wanted to trade places with Amber Frey right now to face the cross-examination with Mark Geragos.
WHITFIELD: Rusty Dornin in Redwood City, California. Thanks so much -- Kyra?
PHILLIPS: Now Iraq, in the efforts to end a potentially perilous standoff, radical cleric Muqtada al-Sadr reportedly is calling for new negotiations after agreeing to pull his fighters out of a hallowed mosque in Najaf.
His reported acceptance of an Iraqi peace offer was conveyed to a conference in Baghdad after Iraq's defense minister vowed to take the mosque by force. United States forces were involved again today in fighting near that Mosque.
Reporter Ed Sanders says the Americans now are waiting to see what happens next.
(BEGIN VIDEO CLIP)
ED SANDERS, LOS ANGELES TIMES: Well, it's been a lot of back- and-forth and lot of waiting here, people waiting to see what happens with these peace talks, which every couple of days they seem to pop up again.
They put things on hold a little bit here and then they fade away and things ramp up again. So, it's been a little bit frustrating for the soldiers to (INAUDIBLE) ready to go with something and then to be pulled back a little bit.
As all that's been going on, though, fighting has continued in the cemetery, that's really the cemetery in the north. And old city in the south is where a lot of the fighting is taking place. It hasn't been intense.
It's certainly not as intense as it was about two weeks ago when you had four days of very, very fierce fighting. Instead, now, it tends to pop up at certain times. There will be mortar attacks, RPG attacks, the U.S. will strike back, and then things will die down.
(END VIDEO CLIP)
PHILLIPS: In addition to agreeing to leave the Imam Ali Mosque, Shiite leader Muqtada al-Sadr purportedly accepted Baghdad's demand to disband his militia and to enter the country's political process. He is now calling for talks on how to make that plan work.
In London, a first appearance in court for eight suspected terrorists officially linked to the heightened state of alert in parts of this country. They're accused of plotting attacks with a lethal array of weapons and scouting locations in the New York City and Washington. None of the suspects has yet entered a plea.
WHITFIELD: Today, it was John Kerry's turn to tell the Veterans of Foreign Wars why he should be commander-in-chief, two days after President Bush sought to rally the vets behind a redeployment of U.S. troops in western Europe and Asia. Kerry called the idea mistimed and nonsensical.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Nobody wants to bring troops home more than those of us who have fought in foreign wars. But it needs to be done at the right time and in a sensible way. This is not that time or that way. Let's be clear: The president's vaguely stated plan does not strengthen our hand in the war on terror.
It in no way relieves the strain on our overextended military personnel. It doesn't even begin until 2006 and it takes ten years to achieve. And this hastily announced plan raises more doubts about our intentions and our commitment than it provides real answers.
(END VIDEO CLIP)
WHITFIELD: Coming up tonight on CNN, Paula Zahn takes the pulse of undecided voters in the battleground state of Ohio. What will make them vote for Bush or for Kerry? Find out tonight at 8:00 p.m. eastern as Paula Zahn hosts "The Undecided Vote: A CNN Town Hall Meeting Live from Ohio." And if you've got a question for the Bush or Kerry camps but can't get to Ohio, e-mail your questions for tonight's show to cnn.com/paula.
And President Bush's campaign bus is rolling through another key state. He's in Wisconsin this hour, his fifth trip to that state in the past year. In 2000, Wisconsin and its 10 electoral votes narrowly went for Al Gore.
Speaking in Chippewa Falls a short time ago, the president proposed new education benefits for National Guard troops and reservists, and he touted his economic policies.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We've been through a lot. Our economy has overcome some mighty obstacles. We've been through a recession. We've been through corporate scandals. We've been through a war and a terrorist attack.
And yet, we've overcame those obstacles because the spirit of this country is strong. Our workers are great. Our farmers are really good. The small business sector is vibrant and alive. And I think one of the reasons we've come through these obstacles is because of well-timed tax cuts.
(END VIDEO CLIP)
WHITFIELD: Out of Florida, where the waiting is over, for the first time today, residents of Sanibel Island are seeing what Hurricane Charley has left of their homes.
Bob Franken reports on the damage on Sanibel, one of the barrier islands to first feel the brunt of that storm.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN CORRESPONDENT: After nearly four days away, the residents of this barrier island were allowed to pass the National Guard blockades, across the pull bridge and the causeway that leads them to this enclave and see just how much damage had been done.
They had been kept away because the trees that you see fallen in back of me had been on the roads. So had power lines, it had been a mess. But officials were able to clean it up to allow the safe return.
What residents saw when they returned is that the houses, which are built to a strict building code, because people here can afford to do that, the houses were still standing, although there was some damage. Still no electricity, still no water, but the residents here believe that they are far more fortunate than ones down the road.
This is an area that they call Mayberry, 6,000 residents who live here, as well as the 32,000 for the summer. It is Mayberry for the very wealthy and that wealth helped fight against nature.
Bob Franken on Sanibel Island.
(END VIDEOTAPE)
PHILLIPS: More scandal around New Jersey's governor, as his top fund-raiser goes before a judge to face prostitution and other charges. We're going to go live to the courthouse. While the world was watching the fighting in Iraq, the country's Olympic team tried to send a different message from Athens.
It may sound silly, but Los Angeles is starting a serious crackdown on cans of stringy foam. You remember that, don't you? Details straight ahead.
(COMMERCIAL BREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
PHILLIPS: A pastor in Texas calls it a miracle. Child protective services calls it a hellish situation. A church missionary finds seven Texas children, ages 8 to 16, allegedly abandoned by their adoptive mother.
Where were they? Halfway around the world in an orphanage in Nigeria. They were skinny, sickly and just wanted to go back to America.
Reporter Jeremy Desel with CNN affiliate KHOU picks up the story from the Texas high school where the oldest girl was a model student.
(BEGIN VIDEOTAPE)
JEREMY DESEL, KHOU REPORTER, (voice-over): For years she was a standout student at Sterling High School.
RASHEDA MALVEAUX, TEACHER: She was a pleasure to have in the classroom. She was just a really good student.
DESEL: Not just the classroom, in ROTC, too.
CPO JOSEPH BENNETT, TEACHER: She was attached, you know, teach me everything. I'm going to go in the Navy when I get out of school.
DESEL: Enough to give teachers high hopes. Then the 16-year-old simply vanished.
BENNETT: The only thing that I ever heard from her was, I think we're going to move.
DESEL: She is one of seven adopted children on the move, the youngest just 8. They also spent time at the Boys & Girls Club of Greater Houston. The younger kids had more to say.
MONA BATES, BOYS & GIRLS CLUBS: Well, they came up to me and told me that their mom didn't want them anymore and that she was sending all of them to Africa. It was very sudden.
DESEL: Then they were gone. That was last October, found earlier this month in a Nigerian orphanage by a Pastor Warren Beemer.
WARREN BEEMER, CORNERSTONE CHURCH: It was a very, very desolate feeling place. It felt like about the end of the Earth, about the last spot you would want to end up.
DESEL: Beemer quizzed the oldest girl. She rattled off her school and the names of these three teachers, her form of ID.
CELESTE MCNEIL, TEACHER: That's on thing that touches my heart, because you really never know. I mean, we hope that we affect a child's life, but you never really know.
DESEL: The teachers hardly recognize her now.
MCNEIL: It is. It's someone you actually know. So it really -- it bothers me.
MALVEAUX: And you see how she looks and you're, like, oh, my God. This child is really sick.
DESEL: They all knew the oldest girl, the one playing cards on the porch, the one first talked to by the missionary who would be their savior, was strong, more than they could see.
BENNETT: That's devastating to me. It is. It hurts me because I know this girl.
DESEL: The teachers may know the oldest child well. LaQuinta Teague knows three of them. She should. She's their birth mother. Now all she has is their pictures.
LAQUINTA TEAGUE, BIRTH MOTHER OF CHILDREN: I knew something wasn't right. I could feel it. I could feel it in my heart that something just wasn't right, wherever they was at.
DESEL: Seeing the pictures of them now, malnourished and sickly, is too much.
TEAGUE: I miss them. I want them to come home. I don't know how they ended up way over there.
DESEL: Only one woman does, and she's not talking.
Jeremy Desel, 11 News.
(END VIDEOTAPE)
PHILLIPS: Other news across America: In Boston, police are looking for two men caught on surveillance tape wheeling an ATM machine out of a convenience store. The two men can be seen on tape sliding that machine through the smashed door of the store.
Getting strung out over silly string, Los Angeles City Council members have voted unanimously to ban the use of that foam string on Halloween. They say environmental concerns are behind the ban, which still has to pass another vote before becoming law.
A splash of cold water on a new Wall Street prospect. If you hoped to get rich quick from Google, it might take you longer than originally expected. Plus, when winning gold doesn't matter. What it feels like to be an Iraqi athlete in Athens. That and today's Olympic highlights straight ahead.
(COMMERCIAL BREAK)
WHITFIELD: A top fundraiser for beleaguered New Jersey Governor James McGreevey has pled guilty today in a federal investigation. Millionaire developer Charles Kushner was originally charged with conspiracy, obstruction of justice and promoting interstate prostitution.
CNN's Deborah Feyerick is live outside the courthouse in Newark, New Jersey, with more on this case -- Deborah?
DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Fredricka, Governor McGreevey's name did not come up in the courthouse, nor did the name of another man who's been in the news a lot, Golan Cipel, the man threatening to file a sexual harassment lawsuit against the government.
Those are the two names that everybody there was waiting to hear. Instead, the name that came up, the man at center stage, was a billionaire developer who contributed almost a million dollars to the Governor McGreevey's campaign.
Charles Kushner, a big New Jersey developer, today pleading guilty in an agreement with the government to disguising $1 million in charitable contributions, putting them down on his tax returns as business expenses instead.
He was also charged with trying to retaliate against one of the witnesses who was cooperating with the government against him, specifically procuring a prostitute for his brother-in-law and then sending a very incriminating tape to his sister. Actually, very complicated, as New Jersey politics often are.
The U.S. attorney right now speaking to members of the press corps, basically telling them that this was not politically motivated, Charles Kushner being a big Democratic supporter, while Mr. Christie, the U.S. attorney himself a Republican.
Also saying that, right now, Mr. Kushner has not agreed in any way to cooperate with the government against Mr. McGreevey or against Mr. Cipel, the man who he actually sponsored to arrive here in the United States -- Fredricka?
WHITFIELD: Well, that's surprising, then that plea deal without agreeing to testify against the administration. But then does this mean that perhaps the penalty might differ?
FEYERICK: No, it doesn't. The reason why Mr. Kushner was pleading guilty today is because he could have faced more than 15 years, that's a maximum sentence, on all of the counts that he pled guilty to today. Instead, he faces a much smaller sentence, and that would be a likely two years in prison, if in fact he does any prison time at all.
So, no, it was a non-cooperating agreement. He just did it because the government had the evidence apparently. He decided to plead guilty -- Fredricka?
WHITFIELD: All right, Deborah Feyerick in New Jersey. Thanks so much.
PHILLIPS: Well, investors -- sorry about that.
WHITFIELD: Go ahead. We complete each other's sentences.
(CROSSTALK)
PHILLIPS: We're talking about investors who are anxious for a chance to share in Google's success. And they're still waiting.
WHITFIELD: Fred Katayama joins us live from the New York Stock Exchange with more on that -- Hey, Fred.
FRED KATAYAMA, CNNFN CORRESPONDENT: Hi, Fredricka. Hi, Kyra. Talk about anticipation. It's another chapter in the Google drama. Many eager investors that expected the company's hotly anticipated IPO to begin trading on the Nasdaq today, but federal regulators threw a wrench into the works by not giving their final approval to the IPO as expected after yesterday's close of trading.
As of right now, we're still waiting on that decision. But we are seeing reports the SEC will OK the offering after 4:00 p.m. today. That means the stock could start trading tomorrow. In the meantime, Google has cut the price range for its shares by more than 20 percent to $85 to $95. It also said fewer shares will be sold to the public. The move suggests demand may be less than the company had hoped for.
As for the stocks that already trade here on Wall Street, they're heading higher. Right now, the Dow Industrials are rising 72 points and the Nasdaq composite is adding 1.5 percent. The gains come despite record high oil prices. Crude climbed 52 cents to close at $47.27 a barrel. And that's the latest from Wall Street. Kyra and Fredricka, back to you.
WHITFIELD: All right. Good deal. Thanks a lot, Fred.
Well, checking entertainment headlines this Wednesday, producers behind Sly Stallone's upcoming NBC reality show about boxing have come out swinging at FOX TV, "The Contender." That team at DreamWorks yesterday through a courtroom jab at FOX's rival show, "The Next Great Champ." DreamWorks claims FOX violated state boxing rules in a bid to beat the NBC series to air and should be required to edit out unregulated bouts.
And some late breaking news. Earlier we told you that Paris Hilton's chihuahua, Tinkerbell, was missing. Well now, word that the missing pup has been found. Hilton's publicist wouldn't offer details on that, just saying the pampered pet was found alive. So good news on that, Tinker. Also no word on who might be collecting the $5,000 reward that Hilton had offered for the safe return. This is not funny. If you were a pet owner, you would understand.
PHILLIPS: I understand. It's hard breaking news when it comes to Paris Hilton. I understand.
WHITFIELD: I would be very upset...
(CROSSTALK)
PHILLIPS: It's definitely very important to air that on CNN, the most trusted name in news.
Now, if you can't sit through hours of Olympic coverage, here's the latest from Athens. The flying Dutchman swimmer, Pieter van den Hoogenband -- God, I'm sorry. I'm probably totally mispronouncing that name. But I tried. He takes the gold in the 100-meter freestyle. Look at that smile. He's adorable.
Australian Ian Thorpe picked up his fourth medal of the games, winning the bronze in the race. And swimming's oldest record was broken today as the U.S. women set a world record in the 4 by 200 meter freestyle relay. Oh, Jason's excited about that. The Americans took more than two seconds off the record. The old mark stood -- Mark Spitz? Or the old mark is what we're talking about -- stood since it was set by an East German team 17 years ago today. That's a mouthful.
Now American Tyler Hamilton picked up a gold medal in today's cycling time trials, 19 seconds faster than the defending medalist from Russia. U.S. teammate Bobby Julich won the bronze. American Dede Barry won silver in the women's time trial.
Now the agony of defeat. (INAUDIBLE) had a serious and often deadly meeting for Olympic athletes from Iraq. Well, that's changed. Mark McKay explains why it's new day for athletes no longer threatened by their own leaders.
(BEGIN VIDEOTAPE)
MARK MCKAY, CNN CORRESPONDENT: The Olympics are a celebration of sport. For the Olympic team from Iraq, the Athens summer games are a celebration of newfound freedom. Twenty-nine Iraqis have come to Greece to compete in events ranging from boxing to swimming. While many won't have a shot at a medal, it really doesn't matter, considering where they've come from and where they hope they're heading.
AHMED AL-SAMMARAI, PRESIDENT, IRAQ OLYMPIC CMTE.: This is the first test. We assure the world that we are coming back, coming back as a friendly country, friendly athletes, to join the other athletes. We have the right to do that as a human being.
MOHAMMED ABBAS, IRAQI SWIMMER: We are very happy we are here as representative of Iraqi people. Maybe we don't have medals on the first step, we can improve ourselves. We are here. MCKAY: The war changed daily life in Iraq, and the devastation made training for the Athens games difficult. But it also brought sweeping changes for the country's Olympic team. For years, athletes were tortured under the regime of President Saddam Hussein's son Uday, who controlled the nation's Olympic committee.
Al-SAMMARAI: The fear would usually control our athletes before, fear from the previous Olympic committee and its president, Uday, even if he didn't show the thing which he would like to see, he is going to put them in prison or torturing them.
HAIDER ALI-LAZIM, IRAQI JUDO OLYMPIAN: In the past, you could not play with freedom. You were not relaxed. You were always tense. Now, we can play with freedom.
DR. TIRAS ANWAYA, DIRECTOR GEN. IRAQ OLYMPIC CMTE.: Regardless of the result, they'll go back to Iraq, they'll not be punished, which is great.
MCKAY: The atmosphere on the street. It's as much a part of the Olympics as the competition itself. For Iraqi athletes here in Athens, they're now free to experience it for the first time.
Iraq's athletes have been cheered throughout the games. And with a berth in the quarterfinals, the nation's soccer team has sparked hopes of returning home with the country's second medal ever.
ANWAYA: I think this team has unified our country. Everybody's behind it, regardless of their affiliation. And all are watching very, very keen to watch the next game.
MOHAMMED ALI, IRAQI WEIGHTLIFTER (through translator): To win these and go forward and with the medal will drive the Iraqis crazy, I think, with happiness.
MCKAY: Those would be welcome scenes on the streets and nothing like the ones they've been used to seeing. Mark McKay, CNN, Athens.
(END VIDEOTAPE)
WHITFIELD: Wow. You know no matter what the sport, the Iraqi teams are getting the biggest, loudest cheers.
PHILLIPS: Hey, we're all talking about it. We're excited about it. And we got a chance to interview a number of the athletes, and they, just, you know...
WHITFIELD: It's always good to see...
PHILLIPS: ... the huge statement.
WHITFIELD: ... overcome adversity.
Well, that wraps up LIVE FROM for today. Candy Crowley's coming up next. She's filling in, and here she is. She's filling in for Judy Woodruff today on INSIDE POLITIC. Hello to you, Candy.
CANDY CROWLEY, CNN ANCHOR: Hi, how are you all? Thanks Kyra and Fredricka. I'm awfully glad to know that dog's been found.
P. Diddy who? That's what one source says you'll ask yourself after a couple of minutes at a party planned for convention week in New York City. We'll have the latest on the hosts and the star- studded guests.
Plus, it seems a growing number of politicians are changing their minds about the war in Iraq. Our Ed Henry looks at the latest turn around on Capitol Hill. INSIDE POLITICS begins in just a moment.
(COMMERCIAL BREAK)
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Aired August 18, 2004 - 14:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Ending the standoff in the Iraqi city of Najaf, a radical Shiite cleric is bowing to the demands of the Iraqi National Congress (sic) -- Conference, rather, at least on paper. Muqtada al-Sadr says he will leave the Imam Ali Mosque, disband his army and join the political process. But when? We'll have an update.
The Iraqi prisoner abuse scandal widens. Military sources tell CNN a new Army report will recommend possible disciplinary action against about two dozen members of the military intelligence brigade in Iraq's Abu Ghraib Prison. The report by Major General George Fay could be released as early as Friday.
The prosecution's star witness in the Scott Peterson murder trial won't face cross-examination by his lawyers today, that has been put off until Monday because of what the judge is calling a potential development in the case. We're going to go live to the courthouse straight ahead.
Little Rilya Wilson vanished without a trace in Florida more than two years ago. Today Miami police charged her former caregiver, Geralyn Graham, with kidnapping and child abuse. Graham maintains she handed Rilya over to child welfare workers and never saw her again. Police say they never believed her story. Rilya has not been found.
FREDRICKA WHITFIELD, CNN ANCHOR: Well, let's start with the latest in the Scott Peterson trial. The judge sent the jury home early today after a so-called "potential development."
CNN's Rusty Dornin is standing by live in Redwood City, California, with the latest -- Rusty?
RUSTY DORNIN, CNN CORRESPONDENT: Fredricka, more surprises and somewhat of a mystery that brought another abrupt halt to the proceedings today. Amber Frey had arrived with her attorney ready, willing and able, according to her, to take the stand today.
But after about an hour behind closed doors, the judge came in and gave a very brief speech to the jury. He says there's been a potential development in the case, he said, that has to be checked out.
He dismissed the jury. He said but they definitely would resume proceedings tomorrow and there would be three witnesses on the stand. Now, we do believe that this halt and this new development has to do with Amber Frey's testimony, and it might have been sparked by the defense as Scott Peterson's family says they are in on the secret.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Anybody have an idea why we're out of court today?
UNIDENTIFIED MALE: Yes, but we can't say.
UNIDENTIFIED FEMALE: It's not fun that things get slowed down, but, you know, we have to trust that things are being done right. The judge is -- he knows what he's doing.
(END VIDEO CLIP)
DORNIN: Amber Frey will be back on the stand on Monday for that highly anticipated cross-examination by defense attorney Mark Geragos -- Fredricka?
WHITFIELD: In the meantime, Rusty, we heard from Gloria Allred, the attorney for Amber Frey, who expressed that Amber Frey was very disappointed because she started the day ready, and able, and willing to be cross-examined.
DORNIN: That's right. She said that she's very frustrated. This has been very difficult for her emotionally, of course. She's up her with her baby, nursing her baby, even throughout the court days.
She was ready to do this. She really had steeled herself for it. Given her own attorney saying no one wanted to trade places with Amber Frey right now to face the cross-examination with Mark Geragos.
WHITFIELD: Rusty Dornin in Redwood City, California. Thanks so much -- Kyra?
PHILLIPS: Now Iraq, in the efforts to end a potentially perilous standoff, radical cleric Muqtada al-Sadr reportedly is calling for new negotiations after agreeing to pull his fighters out of a hallowed mosque in Najaf.
His reported acceptance of an Iraqi peace offer was conveyed to a conference in Baghdad after Iraq's defense minister vowed to take the mosque by force. United States forces were involved again today in fighting near that Mosque.
Reporter Ed Sanders says the Americans now are waiting to see what happens next.
(BEGIN VIDEO CLIP)
ED SANDERS, LOS ANGELES TIMES: Well, it's been a lot of back- and-forth and lot of waiting here, people waiting to see what happens with these peace talks, which every couple of days they seem to pop up again.
They put things on hold a little bit here and then they fade away and things ramp up again. So, it's been a little bit frustrating for the soldiers to (INAUDIBLE) ready to go with something and then to be pulled back a little bit.
As all that's been going on, though, fighting has continued in the cemetery, that's really the cemetery in the north. And old city in the south is where a lot of the fighting is taking place. It hasn't been intense.
It's certainly not as intense as it was about two weeks ago when you had four days of very, very fierce fighting. Instead, now, it tends to pop up at certain times. There will be mortar attacks, RPG attacks, the U.S. will strike back, and then things will die down.
(END VIDEO CLIP)
PHILLIPS: In addition to agreeing to leave the Imam Ali Mosque, Shiite leader Muqtada al-Sadr purportedly accepted Baghdad's demand to disband his militia and to enter the country's political process. He is now calling for talks on how to make that plan work.
In London, a first appearance in court for eight suspected terrorists officially linked to the heightened state of alert in parts of this country. They're accused of plotting attacks with a lethal array of weapons and scouting locations in the New York City and Washington. None of the suspects has yet entered a plea.
WHITFIELD: Today, it was John Kerry's turn to tell the Veterans of Foreign Wars why he should be commander-in-chief, two days after President Bush sought to rally the vets behind a redeployment of U.S. troops in western Europe and Asia. Kerry called the idea mistimed and nonsensical.
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Nobody wants to bring troops home more than those of us who have fought in foreign wars. But it needs to be done at the right time and in a sensible way. This is not that time or that way. Let's be clear: The president's vaguely stated plan does not strengthen our hand in the war on terror.
It in no way relieves the strain on our overextended military personnel. It doesn't even begin until 2006 and it takes ten years to achieve. And this hastily announced plan raises more doubts about our intentions and our commitment than it provides real answers.
(END VIDEO CLIP)
WHITFIELD: Coming up tonight on CNN, Paula Zahn takes the pulse of undecided voters in the battleground state of Ohio. What will make them vote for Bush or for Kerry? Find out tonight at 8:00 p.m. eastern as Paula Zahn hosts "The Undecided Vote: A CNN Town Hall Meeting Live from Ohio." And if you've got a question for the Bush or Kerry camps but can't get to Ohio, e-mail your questions for tonight's show to cnn.com/paula.
And President Bush's campaign bus is rolling through another key state. He's in Wisconsin this hour, his fifth trip to that state in the past year. In 2000, Wisconsin and its 10 electoral votes narrowly went for Al Gore.
Speaking in Chippewa Falls a short time ago, the president proposed new education benefits for National Guard troops and reservists, and he touted his economic policies.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We've been through a lot. Our economy has overcome some mighty obstacles. We've been through a recession. We've been through corporate scandals. We've been through a war and a terrorist attack.
And yet, we've overcame those obstacles because the spirit of this country is strong. Our workers are great. Our farmers are really good. The small business sector is vibrant and alive. And I think one of the reasons we've come through these obstacles is because of well-timed tax cuts.
(END VIDEO CLIP)
WHITFIELD: Out of Florida, where the waiting is over, for the first time today, residents of Sanibel Island are seeing what Hurricane Charley has left of their homes.
Bob Franken reports on the damage on Sanibel, one of the barrier islands to first feel the brunt of that storm.
(BEGIN VIDEOTAPE)
BOB FRANKEN, CNN CORRESPONDENT: After nearly four days away, the residents of this barrier island were allowed to pass the National Guard blockades, across the pull bridge and the causeway that leads them to this enclave and see just how much damage had been done.
They had been kept away because the trees that you see fallen in back of me had been on the roads. So had power lines, it had been a mess. But officials were able to clean it up to allow the safe return.
What residents saw when they returned is that the houses, which are built to a strict building code, because people here can afford to do that, the houses were still standing, although there was some damage. Still no electricity, still no water, but the residents here believe that they are far more fortunate than ones down the road.
This is an area that they call Mayberry, 6,000 residents who live here, as well as the 32,000 for the summer. It is Mayberry for the very wealthy and that wealth helped fight against nature.
Bob Franken on Sanibel Island.
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PHILLIPS: More scandal around New Jersey's governor, as his top fund-raiser goes before a judge to face prostitution and other charges. We're going to go live to the courthouse. While the world was watching the fighting in Iraq, the country's Olympic team tried to send a different message from Athens.
It may sound silly, but Los Angeles is starting a serious crackdown on cans of stringy foam. You remember that, don't you? Details straight ahead.
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(WEATHER REPORT)
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PHILLIPS: A pastor in Texas calls it a miracle. Child protective services calls it a hellish situation. A church missionary finds seven Texas children, ages 8 to 16, allegedly abandoned by their adoptive mother.
Where were they? Halfway around the world in an orphanage in Nigeria. They were skinny, sickly and just wanted to go back to America.
Reporter Jeremy Desel with CNN affiliate KHOU picks up the story from the Texas high school where the oldest girl was a model student.
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JEREMY DESEL, KHOU REPORTER, (voice-over): For years she was a standout student at Sterling High School.
RASHEDA MALVEAUX, TEACHER: She was a pleasure to have in the classroom. She was just a really good student.
DESEL: Not just the classroom, in ROTC, too.
CPO JOSEPH BENNETT, TEACHER: She was attached, you know, teach me everything. I'm going to go in the Navy when I get out of school.
DESEL: Enough to give teachers high hopes. Then the 16-year-old simply vanished.
BENNETT: The only thing that I ever heard from her was, I think we're going to move.
DESEL: She is one of seven adopted children on the move, the youngest just 8. They also spent time at the Boys & Girls Club of Greater Houston. The younger kids had more to say.
MONA BATES, BOYS & GIRLS CLUBS: Well, they came up to me and told me that their mom didn't want them anymore and that she was sending all of them to Africa. It was very sudden.
DESEL: Then they were gone. That was last October, found earlier this month in a Nigerian orphanage by a Pastor Warren Beemer.
WARREN BEEMER, CORNERSTONE CHURCH: It was a very, very desolate feeling place. It felt like about the end of the Earth, about the last spot you would want to end up.
DESEL: Beemer quizzed the oldest girl. She rattled off her school and the names of these three teachers, her form of ID.
CELESTE MCNEIL, TEACHER: That's on thing that touches my heart, because you really never know. I mean, we hope that we affect a child's life, but you never really know.
DESEL: The teachers hardly recognize her now.
MCNEIL: It is. It's someone you actually know. So it really -- it bothers me.
MALVEAUX: And you see how she looks and you're, like, oh, my God. This child is really sick.
DESEL: They all knew the oldest girl, the one playing cards on the porch, the one first talked to by the missionary who would be their savior, was strong, more than they could see.
BENNETT: That's devastating to me. It is. It hurts me because I know this girl.
DESEL: The teachers may know the oldest child well. LaQuinta Teague knows three of them. She should. She's their birth mother. Now all she has is their pictures.
LAQUINTA TEAGUE, BIRTH MOTHER OF CHILDREN: I knew something wasn't right. I could feel it. I could feel it in my heart that something just wasn't right, wherever they was at.
DESEL: Seeing the pictures of them now, malnourished and sickly, is too much.
TEAGUE: I miss them. I want them to come home. I don't know how they ended up way over there.
DESEL: Only one woman does, and she's not talking.
Jeremy Desel, 11 News.
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PHILLIPS: Other news across America: In Boston, police are looking for two men caught on surveillance tape wheeling an ATM machine out of a convenience store. The two men can be seen on tape sliding that machine through the smashed door of the store.
Getting strung out over silly string, Los Angeles City Council members have voted unanimously to ban the use of that foam string on Halloween. They say environmental concerns are behind the ban, which still has to pass another vote before becoming law.
A splash of cold water on a new Wall Street prospect. If you hoped to get rich quick from Google, it might take you longer than originally expected. Plus, when winning gold doesn't matter. What it feels like to be an Iraqi athlete in Athens. That and today's Olympic highlights straight ahead.
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WHITFIELD: A top fundraiser for beleaguered New Jersey Governor James McGreevey has pled guilty today in a federal investigation. Millionaire developer Charles Kushner was originally charged with conspiracy, obstruction of justice and promoting interstate prostitution.
CNN's Deborah Feyerick is live outside the courthouse in Newark, New Jersey, with more on this case -- Deborah?
DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Fredricka, Governor McGreevey's name did not come up in the courthouse, nor did the name of another man who's been in the news a lot, Golan Cipel, the man threatening to file a sexual harassment lawsuit against the government.
Those are the two names that everybody there was waiting to hear. Instead, the name that came up, the man at center stage, was a billionaire developer who contributed almost a million dollars to the Governor McGreevey's campaign.
Charles Kushner, a big New Jersey developer, today pleading guilty in an agreement with the government to disguising $1 million in charitable contributions, putting them down on his tax returns as business expenses instead.
He was also charged with trying to retaliate against one of the witnesses who was cooperating with the government against him, specifically procuring a prostitute for his brother-in-law and then sending a very incriminating tape to his sister. Actually, very complicated, as New Jersey politics often are.
The U.S. attorney right now speaking to members of the press corps, basically telling them that this was not politically motivated, Charles Kushner being a big Democratic supporter, while Mr. Christie, the U.S. attorney himself a Republican.
Also saying that, right now, Mr. Kushner has not agreed in any way to cooperate with the government against Mr. McGreevey or against Mr. Cipel, the man who he actually sponsored to arrive here in the United States -- Fredricka?
WHITFIELD: Well, that's surprising, then that plea deal without agreeing to testify against the administration. But then does this mean that perhaps the penalty might differ?
FEYERICK: No, it doesn't. The reason why Mr. Kushner was pleading guilty today is because he could have faced more than 15 years, that's a maximum sentence, on all of the counts that he pled guilty to today. Instead, he faces a much smaller sentence, and that would be a likely two years in prison, if in fact he does any prison time at all.
So, no, it was a non-cooperating agreement. He just did it because the government had the evidence apparently. He decided to plead guilty -- Fredricka?
WHITFIELD: All right, Deborah Feyerick in New Jersey. Thanks so much.
PHILLIPS: Well, investors -- sorry about that.
WHITFIELD: Go ahead. We complete each other's sentences.
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PHILLIPS: We're talking about investors who are anxious for a chance to share in Google's success. And they're still waiting.
WHITFIELD: Fred Katayama joins us live from the New York Stock Exchange with more on that -- Hey, Fred.
FRED KATAYAMA, CNNFN CORRESPONDENT: Hi, Fredricka. Hi, Kyra. Talk about anticipation. It's another chapter in the Google drama. Many eager investors that expected the company's hotly anticipated IPO to begin trading on the Nasdaq today, but federal regulators threw a wrench into the works by not giving their final approval to the IPO as expected after yesterday's close of trading.
As of right now, we're still waiting on that decision. But we are seeing reports the SEC will OK the offering after 4:00 p.m. today. That means the stock could start trading tomorrow. In the meantime, Google has cut the price range for its shares by more than 20 percent to $85 to $95. It also said fewer shares will be sold to the public. The move suggests demand may be less than the company had hoped for.
As for the stocks that already trade here on Wall Street, they're heading higher. Right now, the Dow Industrials are rising 72 points and the Nasdaq composite is adding 1.5 percent. The gains come despite record high oil prices. Crude climbed 52 cents to close at $47.27 a barrel. And that's the latest from Wall Street. Kyra and Fredricka, back to you.
WHITFIELD: All right. Good deal. Thanks a lot, Fred.
Well, checking entertainment headlines this Wednesday, producers behind Sly Stallone's upcoming NBC reality show about boxing have come out swinging at FOX TV, "The Contender." That team at DreamWorks yesterday through a courtroom jab at FOX's rival show, "The Next Great Champ." DreamWorks claims FOX violated state boxing rules in a bid to beat the NBC series to air and should be required to edit out unregulated bouts.
And some late breaking news. Earlier we told you that Paris Hilton's chihuahua, Tinkerbell, was missing. Well now, word that the missing pup has been found. Hilton's publicist wouldn't offer details on that, just saying the pampered pet was found alive. So good news on that, Tinker. Also no word on who might be collecting the $5,000 reward that Hilton had offered for the safe return. This is not funny. If you were a pet owner, you would understand.
PHILLIPS: I understand. It's hard breaking news when it comes to Paris Hilton. I understand.
WHITFIELD: I would be very upset...
(CROSSTALK)
PHILLIPS: It's definitely very important to air that on CNN, the most trusted name in news.
Now, if you can't sit through hours of Olympic coverage, here's the latest from Athens. The flying Dutchman swimmer, Pieter van den Hoogenband -- God, I'm sorry. I'm probably totally mispronouncing that name. But I tried. He takes the gold in the 100-meter freestyle. Look at that smile. He's adorable.
Australian Ian Thorpe picked up his fourth medal of the games, winning the bronze in the race. And swimming's oldest record was broken today as the U.S. women set a world record in the 4 by 200 meter freestyle relay. Oh, Jason's excited about that. The Americans took more than two seconds off the record. The old mark stood -- Mark Spitz? Or the old mark is what we're talking about -- stood since it was set by an East German team 17 years ago today. That's a mouthful.
Now American Tyler Hamilton picked up a gold medal in today's cycling time trials, 19 seconds faster than the defending medalist from Russia. U.S. teammate Bobby Julich won the bronze. American Dede Barry won silver in the women's time trial.
Now the agony of defeat. (INAUDIBLE) had a serious and often deadly meeting for Olympic athletes from Iraq. Well, that's changed. Mark McKay explains why it's new day for athletes no longer threatened by their own leaders.
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MARK MCKAY, CNN CORRESPONDENT: The Olympics are a celebration of sport. For the Olympic team from Iraq, the Athens summer games are a celebration of newfound freedom. Twenty-nine Iraqis have come to Greece to compete in events ranging from boxing to swimming. While many won't have a shot at a medal, it really doesn't matter, considering where they've come from and where they hope they're heading.
AHMED AL-SAMMARAI, PRESIDENT, IRAQ OLYMPIC CMTE.: This is the first test. We assure the world that we are coming back, coming back as a friendly country, friendly athletes, to join the other athletes. We have the right to do that as a human being.
MOHAMMED ABBAS, IRAQI SWIMMER: We are very happy we are here as representative of Iraqi people. Maybe we don't have medals on the first step, we can improve ourselves. We are here. MCKAY: The war changed daily life in Iraq, and the devastation made training for the Athens games difficult. But it also brought sweeping changes for the country's Olympic team. For years, athletes were tortured under the regime of President Saddam Hussein's son Uday, who controlled the nation's Olympic committee.
Al-SAMMARAI: The fear would usually control our athletes before, fear from the previous Olympic committee and its president, Uday, even if he didn't show the thing which he would like to see, he is going to put them in prison or torturing them.
HAIDER ALI-LAZIM, IRAQI JUDO OLYMPIAN: In the past, you could not play with freedom. You were not relaxed. You were always tense. Now, we can play with freedom.
DR. TIRAS ANWAYA, DIRECTOR GEN. IRAQ OLYMPIC CMTE.: Regardless of the result, they'll go back to Iraq, they'll not be punished, which is great.
MCKAY: The atmosphere on the street. It's as much a part of the Olympics as the competition itself. For Iraqi athletes here in Athens, they're now free to experience it for the first time.
Iraq's athletes have been cheered throughout the games. And with a berth in the quarterfinals, the nation's soccer team has sparked hopes of returning home with the country's second medal ever.
ANWAYA: I think this team has unified our country. Everybody's behind it, regardless of their affiliation. And all are watching very, very keen to watch the next game.
MOHAMMED ALI, IRAQI WEIGHTLIFTER (through translator): To win these and go forward and with the medal will drive the Iraqis crazy, I think, with happiness.
MCKAY: Those would be welcome scenes on the streets and nothing like the ones they've been used to seeing. Mark McKay, CNN, Athens.
(END VIDEOTAPE)
WHITFIELD: Wow. You know no matter what the sport, the Iraqi teams are getting the biggest, loudest cheers.
PHILLIPS: Hey, we're all talking about it. We're excited about it. And we got a chance to interview a number of the athletes, and they, just, you know...
WHITFIELD: It's always good to see...
PHILLIPS: ... the huge statement.
WHITFIELD: ... overcome adversity.
Well, that wraps up LIVE FROM for today. Candy Crowley's coming up next. She's filling in, and here she is. She's filling in for Judy Woodruff today on INSIDE POLITIC. Hello to you, Candy.
CANDY CROWLEY, CNN ANCHOR: Hi, how are you all? Thanks Kyra and Fredricka. I'm awfully glad to know that dog's been found.
P. Diddy who? That's what one source says you'll ask yourself after a couple of minutes at a party planned for convention week in New York City. We'll have the latest on the hosts and the star- studded guests.
Plus, it seems a growing number of politicians are changing their minds about the war in Iraq. Our Ed Henry looks at the latest turn around on Capitol Hill. INSIDE POLITICS begins in just a moment.
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