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Fighting continues in Najaf

Aired August 20, 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.


(COMMERCIAL BREAK)
FREDRICKA WHITFIELD, CNN ANCHOR: Up first this hour, the key to a peaceful resolution in Najaf. Literally, it unlocks the doors of the Iraqi city's Imam Ali mosque, and Iraq senior Shiite cleric undergoing cardiac treatments in London is signaling his agreement to have his aides take possession of the keys, and thus, the mosque. The cleric, whose self-styled army has been holed up for days now. It was Muqtada al-Sadr's idea, but no one knows where he is, let alone what he really plans to do. CNN's Matthew Chance filed this update just after nightfall in Najaf.

(BEGIN VIDEO CLIP)

MATTHEW CHANCE, CNN CORRESPONDENT: A great deal of confusion here in Najaf about what exactly is happening inside the holey city. But certainly we know that a big offensive is underway right now. I can hear warplanes in the skies overhead pounding positions of the Mehdi army inside Najaf itself. And so, clearly, the fighting is not over.

Earlier, though the hopes were raised that the situation may be coming to a head with reports, or with an appearance, in a statement from a member of the interior ministry saying that the Iraqi police forces have taken over the Imam Ali shrine, arrested 400 people and were bringing the matter to a close, but that does not seem to have been the case. I've been speaking to the U.S. Army and Marine intelligence forces here, that are on the ground, reconnaissance missions. They are saying they have seen no evidence that the Mehdi army has actually left the shrine, and so it seems to have been the interior ministry getting ahead of itself.

Although there's a lot of speculation about sort of plans that are in the open at the moment, the battle in Najaf, though, is still very much on, very ferocious fighting, not just air strikes but also troops moving in to central Najaf, backed by tanks, helicopter gun ships, AC-130 gun ships as well, striking at these prospective positions of the Medhi army. We've had some casualty figures coming from the hospital sources inside Najaf itself. They're saying that, in that 24-hour period, at least 77 Iraqis were killed as a result of fighting, another 70 were injured, that's an indication of the ferocity of the fighting, they say is still continuing tonight as well.

(END VIDEO CLIP)

WHITFIELD: And that was Matthew Chance reporting. For more news out of Iraq, a videotape has surfaced today of French-American journalist Micah Garen who was abducted last week in Nasiriyah. In the tape, originally aired by Al-Jazeera, Garen is heard introducing himself and he's reading a statement in English that is translated into Arabic.

(BEGIN VIDEO CLIP)

MICAH GAREN, JOURNALIST HELD HOSTAGE: I'm an American journalist in Iraq. And...

(END VIDEO CLIP)

WHITFIELD: The statement says, quote, "I've been asked to deliver a message from the martyrs brigade who want the American people to work on ending the bloodshed in Iraq." Garen goes on to say he is being treated well.

KYRA PHILLIPS, CNN ANCHOR: Harsh words, soft money, swift boats. The latest skirmish in the U.S. presidential race is still being fought on Vietnam and what John Kerry did there, and what he said later about it.

(BEGIN VIDEO CLIP)

U.S. SENATOR JOHN KERRY (D-MA): They had personally raped, cut off ears, cut off heads...

JOE PONDER, SWIFT BOAT VETERANS FOR TRUTH: The accusations that John Kerry made against the veterans who served in Vietnam was just devastating.

KERRY: ... randomly shot at civilians.

PONDER: And it hurt me more than any physical wounds I had.

KERRY: ... cut off limbs...

(END VIDEO CLIP)

PHILLIPS: So goes the latest attack from the anti-Kerry group that claims the Democratic presidential hopeful lied to win some of his medals. Legally, financially and otherwise, Swift Boat Veterans for Truth is separate from the Bush camp or GOP, but Kerry still accuses Bush of endorsing its claims by failing to publicly denounce them. Kerry, too, has soft-money allies, but he dipped into his own campaign treasury for the ad countering the harshest allegations.

(BEGIN VIDEO CLIP)

KERRY: I'm John Kerry and I approved this message.

ANNOUNCER: The people attacking John Kerry's war record are funded by Bush's big money supporters. Listen to someone was there, the man whose life John Kerry saved.

(END VIDEO CLIP) PHILLIPS: President Bush has stepped off the campaign trail to enjoy some downtime at his ranch in Texas, but it's not exactly a vacation. CNN's Jill Dougherty joins us from nearby there in Crawford -- Jill?

JILL DOUGHERTY, CNN CORRESPONDENT: Well, Kyra, that's right. And I'll give you a quote from the news briefing that we just had from Scott McClellan, the press secretary for the president. "Losing his cool," that's how McClellan describes the reaction of Senator John Kerry to the controversy over the attack ads. Initially, the question came up at the briefing, could he respond to a New York Times article, a rather detailed one, that alleged a web of connections between the people who are in and put together those swift boat ads and the Bush family high profile Texas figures and Karl Rove, who is the president's advisor. So McClellan said there is no connection, absolutely no connection, between the White House or the campaign and those people. And then he went on to go after Kerry.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I do think that Senator Kerry losing his cool should not be an excuse for him to lash out at the president with false and baseless attacks. I mean, where has the Kerry campaign been for the last year, while more than $62 million in funding through these shadowy groups have been used to negatively attack the president.

(END VIDEO CLIP)

DOUGHERTY: So the spokesman for the president said that Kerry has been noticeably silent on this issue, and also, he claims that this has fueled this kind of attack. He said we could put an end to this right now if Senator Kennedy -- Kerry would join President Bush and say, "Let's stop all these ads." -- Kyra?

PHILLIPS: Jill Dougherty, live from Crawford. Well, today, we're wondering whether the swift boat veterans controversy will sway your vote for president. You can still e-mail your comments to LIVE FROM at cnn.com. We're going to read some of them very shortly.

WHITFIELD: Well, news across America now. The Food and Drug Administration is preparing new warning labels for some anti- depressants. The FDA now says some anti-depressants could cause children to have suicidal tendencies. The agency has not said which drugs are in question or what the warning labels will say.

Officials near Houston, Texas, plan to let a natural gas fire burn itself out. The fire started yesterday when an explosion happened in an underground storage facility. A second blast occurred early this morning. No injuries have been reported, but people living in a three-mile radius have been evacuated.

The New York City Police Department is preparing for the upcoming GOP convention. Today it practiced dealing with possible scenarios that could happen at the convention. During one exercise, there was a mock protest, and police clashed with the fake demonstrators -- Kyra? PHILLIPS: Governor Piscopo? Say it ain't so, Joe. Now that New Jersey Governor McGreevey has revealed his intention to resign, some folks think "Saturday Night Live" alumnus and self-proclaimed Jersey guy, Joe Piscopo, is just what the Garden State needs. Now Piscopo spoke about the "Draft Piscopo" proposal -- can you say that all three times -- on CNN's AMERICAN MORNING.

(BEGIN VIDEO CLIP)

JOE PISCOPO, COMEDIAN: I had some serious people talk to me, Bill. We're very concerned about the state and that the -- you know, I wrote the jokes 20 years ago. But now, it's almost not funny the way Jersey's getting hit, and I'm reading The Wall Street Journal and I'm reading all these national publications, USA Today, saying the problems we have in Jersey. So the people that came to me and asked me to run, they're serious.

(END VIDEO CLIP)

WHITFIELD: Well, Piscopo's affection for New Jersey runs deep. His entire comedy career was dotted with Jersey caricatures and jokes. Some say the state may yet be the vehicle for another career in politics.

Are you from Jersey? I'm from Jersey.

PHILLIPS: Jersey. You've got to say Jersey right.

WHITFIELD: We'll talk about Olympics seventh heaven, seven straight shutouts for the U.S. softball team and 77 victories in a row. After a perfect run with a 3-0 win over Taiwan, the Americans are now set for a semifinal showdown against the Australians.

In the swimming pool, Michael Phelps strikes gold again. The U.S. dynamo wins his fifth gold medal in the men's 100-meter butterfly. Phelps also took gold earlier in the men's 200-meter individual medley, setting a new Olympic record in the process.

And in gymnastics, the long wait is over. Twenty years after Mary Lou Retton, Carly Patterson becomes the first American women to win gold in the all-around competition in so many years. The 16-year- old beat Svetlana Khorkina on her way to first place.

Well, next week, the man regarded as the most successful gymnastics coach in history will be our special guest on LIVE FROM. Bela Karolyi has produced nine Olympic champions, including Mary Lou Retton. His career spans 30 years, both her and in his native Romania. And join us next Wednesday, that's August 25th, when we talk to Bela Karolyi right here on LIVE FROM. He's responsible for Nadia Comaneci, too.

PHILLIPS: There you go. Not bad (INAUDIBLE) coach.

A courageous young woman coming back from a severe injury on the battlefield in Iraq. You'll be inspired by her story, just ahead on LIVE FROM. And the world over a barrel: Record oil prices and their potential affects on the global economy.

And a veteran television news anchor might be really mad that Regis Philbin showed up for work today. Details on just why straight ahead.

(COMMERCIAL BREAK)

ORELON SIDNEY, CNN METEOROLOGIST: I'm Orelon Sidney from the CNN weather center. Here's the big story this weekend: A cold front pushing across the eastern United States with thunderstorms and some heavy rain out of ahead of it. Another area of low pressure moves out of British Columbia and Alberta. By Sunday, you're going to find a pretty extensive area of rain and maybe even a few thunderstorms across the Pacific Northwest. The front drifts to the South on Sunday, but your temperatures in the North actually start to rebound. Highs will be in the 70s around the Great Lakes on Saturday. You'll be back into the 80s for the most part on Sunday.

(COMMERCIAL BREAK)

WHITFIELD: Well now to a story of courage and determination, an army soldier shares a distinction with only two other Iraq war veterans, but it's a distinction nobody would want. Pentagon correspondent Barbara Starr explains.

(BEGIN VIDEO CLIP)

BARBARA STARR, CNN CORRESPONDENT: Army First Lieutenant Dawn Halfaker more than keeps up as she works out alongside other amputees at Walter Reed Army Medical Center. She lost her right arm in Iraq after being hit by a rocket-propelled grenade.

DAWN HALFAKER, U.S. ARMY FIRST LIEUTENANT: It came back and through, and it took a big chunk out of here and then it came through this way and took off, basically, the top part of my arm.

STARR: She woke up days later at Walter Reed.

HALFAKER: I was screaming, you know, "don't cut my arm off" and things of that nature. So my dad calmed me down and told me you'd already lost your arm. So it's a lot to take in for just waking up.

STARR: A West Point graduate where she starred on the basketball team, Halfaker, 25 years old is only one of three female amputees from the war, a woman in combat now facing intensely personal challenges.

HALFAKER: The hair has been a big issue. As a female, you might relate. I can't do my own hair as of yet, which is very, very difficult. You know, you want to look nice, and it's hard. But then, moving down, you know, obviously, the bra. You know, it's hard to put on a bra with one hand. So, you know, guys aren't faced with that. You know, putting on makeup, I was trying to do this eye, you know, and I'm trying to put on mascara, so that was little bit tough.

STARR: Still, Halfaker thought the Army would be her life.

HALFAKER: You know, I had all these plans. All of a sudden your life is just turned upside down.

STARR: Now, moving on, but not forgetting.

HALFAKER: There's no way you can go through this alone. You need people to be able to talk to you, to vent, you know, to ask why.

STARR: Barbara Starr, CNN, Walter Reed Army Medical Center.

(END VIDEO CLIP)

PHILLIPS: And that's like one of many stories we've told.

WHITFIELD: Yes.

PHILLIPS: Is that they, even with that happens, they're still positive about it. And I think that's even more remarkable.

(CROSSTALK)

WHITFIELD: That's the major inspiration there.

PHILLIPS: Well, here's a question for you. How do you feel about all these attack ads in the presidential race? We'll have some of your e-mails in a just a bit.

Plus, live from our own Blondie moment. Debra Harry opens up to us about her biggest regrets. Stay with us.

(COMMERCIAL BREAK)

WHITFIELD: Well, we've been asking the question all day, will the swift boat veteran's controversy sway your vote for president?

PHILLIPS: We're going to take a moment now to read some of the e-mails we received from you. Here we go, Cris writes, "As a Vietnam veteran, I don't understand the controversy. Details about how many bullets were flying on a given day in the Mekong Delta are irrelevant. You either went when called or you hid and ran."

WHITFIELD: And then from Stan (ph), "Yes, these Vietnam ads will influence my vote. Senator Kerry has made this conflict the main thrust of his campaign. He has made a foolish error in bringing it back up. Now we are getting hours of free coverage of cable news. This move on his part shows that the ads have hit home, makes one think that he has no new ideas on merit and raises questions about his role."

PHILLIPS: And Libby writes: "Anybody that lets a so-called swift boat controversy sway his or her opinion about this election should have their head examined. This has no bearing about what's going on in this country. Talk about job losses, the economy, rising costs of health care. This is our future, not something that happened 35 years. Are we that stupid? Come on, America, wake up." WHITFIELD: And that was from Tom, and now this one's from Libby: "The swift boat ads will have no effect on my vote. However, any young person considering a military career will undoubtedly think twice about enlisting. With the attacks on McCain, Cleland and now Kerry, for their military service, why would anyone want to join?"

PHILLIPS: And Chris writes: "The ads won't influence my vote. Both Mr. Kerry and Mr. Bush should be ashamed for touting their bravery in the face of enemy attacks when so many people died in Vietnam and on 9/11. The true hero is modest about his accomplishments.

WHITFIELD: And from Julie with a final word: "I'm getting so sick of these two very professional men acting like teenagers with all their dirt-slinging. This just may persuade my vote right to Ralph Nader."

PHILLIPS: Well, are the attacks on Kerry's war record hurting his campaign? Wolf Blitzer takes a closer look today when at 3:30 eastern he host Judy Woodruff's INSIDE POLITICS.

Well many U.S. cities believe that having a resident orchestra helps increase their cultural status, but it's a costly asset that can be difficult to maintain in a sluggish economy. Susan Lisovicz takes a look now at one orchestra's struggle to stay afloat.

(BEGIN VIDEO CLIP)

SUSAN LISOVICZ, CNN CORRESPONDENT: The Philadelphia Orchestra is right up there with the Liberty Bell, the 76ers and the cheese steak as a beloved symbol of the city of brotherly love. Its orchestra has enthralled live audiences for more than a century. But there is discord in the Philadelphia Orchestra. Faced with a projected $4 million deficit, management is looking to cut its cost by 10 percent.

GLORIA DEPASQUALE, PHILADELPHIA ORCHESTRA: If we took one of the sports teams, if we started cutting away players and we starting cutting their salary, pretty soon they wouldn't be considered the same in the eyes of the entire industry and the entire -- their league.

LISOVICZ: But the league of the black-tie worker is changing. There are an estimated 350 orchestras nationwide that have the wherewithal to pay all their musicians. The league that tracks them says virtually all of these non-profit institutions are now operating in the red, casualties of the downturn in the economy that, in turn, hurt government funding, corporate sponsorships and endowments.

Orchestras are a matter of proud and prestige for many cities. And just as with sports teams, many orchestras feel they need a marquee player to bring in bigger crowds and more donations. But those marquee players deplete the budget even more.

The music directors and conductors in New York, San Francisco, Los Angeles and Chicago are each reportedly paid a million dollars a year or more, but the Philadelphia Orchestra says everyone is sharing the pain, including its president. STEVE ALBERTINI, PHILADELPHIA ORCHESTRA: Not only has Joe Kluger given back 10 percent of his salary, but members of the board have increased their contributions.

LISOVICZ: At the same, financially-strained communities are reevaluating their priorities.

JAMES ABRUZZO, NON-PROFIT CONSULTANT: At one time, every city felt it needed to have an orchestra, a ballet and an opera company. Now I think that there are other attractions that educate and bring people together.

LISOVICZ: And while individual donations to orchestras have remained constant, audience numbers are declining slightly. One reason could be that music classes have been steadily cut and the potential audience is simply unfamiliar with the material.

Susan Lisovicz, CNN, Philadelphia.

(END VIDEO CLIP)

PHILLIPS: Well, believe it or not, oil prices are dropping slightly this afternoon after coming perilously close to a $50 a barrel mark. But the close call has many observers fearful that a new price jump could trigger a global recession. Mary Snow at the New York Mercantile Exchange with the latest now -- Mary?

MARY SNOW, CNN CORRESPONDENT: Hi there, Kyra. You have the oil easing today, and closing this afternoon at $47.86 a barrel. But earlier in the day, it had come within almost spitting distance of $50 a barrel, which is seen as kind of a psychological milestone and certainly providing for a pretty jittery market. This as supply has been very tight and demand has been growing. We found out yesterday, just yesterday, that China's demand has grown about 40 percent.

And this is a market that's been watching the headlines, headlines coming out of Iraq initially today had had the market jittery, but some easing back. This of course is raising concerns though about what the future will bring, because many oil analysts and traders will say that they expect the price of oil to continue to climb. The big question is, how does it affect the customer? We spoke with some analysts who expect that the price of heating oil will climb this winter.

(BEGIN VIDEO CLIP)

PHIL FLYNN, ALARON TRADING CORP.: If we have a cold winter, and because oil prices have been going up quite dramatically, you may start to see some fuel switching, because crude oil prices are going to be close to $50 a barrel.

(END VIDEO CLIP)

SNOW: And some analysts, Kyra, are predicting that your heating bills could go up by about $350 overall this winter if oil prices stay so high. And of course another thing that's going to be impacted, gasoline prices -- Kyra?

PHILLIPS: Of course. We just keep sucking it up. All right, Mary Snow, thank you -- Fred?

WHITFIELD: That's huge. That seems criminal.

PHILLIPS: Hey, our heating bills already big enough in Atlanta. I know how bad it is.

WHITFIELD: Yes. All right. Well, how about some entertainment headlines? Have we got some for you. Doing time on the tube lands Regis Philbin in the record books. Today's "Live with Regis and Kelly" put the talk show host in the Guinness Book of World Records for most hours on camera. Philbin has logged 15,188 hours. Guess who he passes? Broadcaster Hugh Downs.

Well, Joan Rivers is going under the cosmetic knife again, but this time on television for everyone to see. The comedian/fashion critic will guest star as herself on the season finale of the cable hit "Nip/Tuck." Rivers has openly joked about her own cosmetic surgery. She's not ashamed. The publicist for the "Nip/Tuck" show won't say what procedure Rivers will have on the show, only that, quote, "it's something she's never had done before."

Well, she's infamous and famous. Now the publicist to the stars, Lizzie Grubman, remember her? Well, she's getting her own show. Grubman's "Power Girls" will premier next spring on MTV. The reality show will follow Grubman and her PR team from Manhattan to Miami. You might remember Grubman went to jail for plowing her SUV into a nightclub crowd in the Hamptons. That was back in 2001.

PHILLIPS: Well, she's infamous and famous. Now the publicist to the stars -- Well, we were just talking about Lizzie Grubman. How do you like that? Talking about having a blonde moment. Maybe that's a good segue way to my moment with the blonde moment, and I'm a red hand and acting like a blonde right now. But here we go. Rock legend Debra Harry of Blondie joined us to talk about her old hits and she got philosophical in one response to one of my questions. Here she is.

(BEGIN VIDEO CLIP)

PHILLIPS: I want to know the biggest regret and the best memory.

DEBRA HARRY, BLONDIE: Oh, I don't know if I can actually do that.

PHILLIPS: The first thing that comes to your mind.

HARRY: I think the biggest regret overall is that, you know, of all the people that I've met, you know, that I didn't sort of score better with them. You know, I was sort of not very good at social things. You know? So I sort of regretted I didn't stay friends with John Cleese or somebody like that, you know, that I met along the way. I guess, I don't know, the biggest happiest thing?

PHILLIPS: Yes, the happiest moment.

HARRY: I guess it was having "Heart of Glass" go to number one in the States. That was pretty exciting.

PHILLIPS: That's a song we all -- so when you step up to the mike, when you get ready to sing, when you think of your oldies, would that be the one song you never get tired of singing?

HARRY: No.

(END VIDEO CLIP)

PHILLIPS: She is so cute and she looks so good.

WHITFIELD: Oh, she looks fabulous.

PHILLIPS: Fifty-nine and she looks amazing.

WHITFIELD: God. Ageless.

PHILLIPS: Did you snag her cat by the way?

WHITFIELD: No. She just wanted me to hold on it to and style with it for a moment. I think she was happy to get it back. Because she was sporting it as she was living.

PHILLIPS: Do you think Wolf Blitzer ever listened to Blondie?

WHITFIELD: I'm sure he did. Wolf is cool.

PHILLIPS: Hi, Wolf.

WOLF BLITZER, CNN ANCHOR: I used to have a blonde moment myself. And as you can probably tell by now, those days are long gone.

PHILLIPS: He has salt and pepper moments.

BLITZER: No more blonde moments for me, Kyra. Thanks, Fredricka, very much.

It's Friday and that means it's almost time for Bill Schneider to award his political play of the week. This week's prize goes to man who's taking the president to task, urging him to, quote, "stop studying and start helping the American people."

Plus this, as the swift boat squabble continues into yet another day, we'll take a closer look at this whole controversy and if the attacks are actually hurting Senator Kerry. INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

WHITFIELD: INSIDE POLITICS in a moment, but first, now in the news. Iraq's Grand Ayatollah Ali Sistani is calling on the leader of insurgents to hand over the keys to a revered mosque in Najaf. Supporters of Muqtada al-Sadr have been holed up in the mosque complex and fighting U.S.-led forces.

Video of a French-American journalist held hostage in Iraq aired on the television network Al-Jazeera today. Micah Garen read a statement in the video urging America to end the bloodshed in Najaf. Aides to renegade Shiite cleric, Muqtada al-Sadr, say the journalist should be released today or tomorrow.

Escalating violence in Iraq took U.S. oil prices close to $50 a barrel today. U.S. light crude fell in late trading from a record high of $49.40 to $47.70 a barrel. Oil dealers are concerned further U.S. attacks on insurgents could mean damage to Iraq's oil infrastructure.

And now to Wolf Blitzer filling in for Judy Woodruff on INSIDE POLITICS.

(BEGIN VIDEO CLIP)

U.S. SENATOR JOHN KERRY (D-MA): They had personally raped, cut off ears, cut off heads

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Aired August 20, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
FREDRICKA WHITFIELD, CNN ANCHOR: Up first this hour, the key to a peaceful resolution in Najaf. Literally, it unlocks the doors of the Iraqi city's Imam Ali mosque, and Iraq senior Shiite cleric undergoing cardiac treatments in London is signaling his agreement to have his aides take possession of the keys, and thus, the mosque. The cleric, whose self-styled army has been holed up for days now. It was Muqtada al-Sadr's idea, but no one knows where he is, let alone what he really plans to do. CNN's Matthew Chance filed this update just after nightfall in Najaf.

(BEGIN VIDEO CLIP)

MATTHEW CHANCE, CNN CORRESPONDENT: A great deal of confusion here in Najaf about what exactly is happening inside the holey city. But certainly we know that a big offensive is underway right now. I can hear warplanes in the skies overhead pounding positions of the Mehdi army inside Najaf itself. And so, clearly, the fighting is not over.

Earlier, though the hopes were raised that the situation may be coming to a head with reports, or with an appearance, in a statement from a member of the interior ministry saying that the Iraqi police forces have taken over the Imam Ali shrine, arrested 400 people and were bringing the matter to a close, but that does not seem to have been the case. I've been speaking to the U.S. Army and Marine intelligence forces here, that are on the ground, reconnaissance missions. They are saying they have seen no evidence that the Mehdi army has actually left the shrine, and so it seems to have been the interior ministry getting ahead of itself.

Although there's a lot of speculation about sort of plans that are in the open at the moment, the battle in Najaf, though, is still very much on, very ferocious fighting, not just air strikes but also troops moving in to central Najaf, backed by tanks, helicopter gun ships, AC-130 gun ships as well, striking at these prospective positions of the Medhi army. We've had some casualty figures coming from the hospital sources inside Najaf itself. They're saying that, in that 24-hour period, at least 77 Iraqis were killed as a result of fighting, another 70 were injured, that's an indication of the ferocity of the fighting, they say is still continuing tonight as well.

(END VIDEO CLIP)

WHITFIELD: And that was Matthew Chance reporting. For more news out of Iraq, a videotape has surfaced today of French-American journalist Micah Garen who was abducted last week in Nasiriyah. In the tape, originally aired by Al-Jazeera, Garen is heard introducing himself and he's reading a statement in English that is translated into Arabic.

(BEGIN VIDEO CLIP)

MICAH GAREN, JOURNALIST HELD HOSTAGE: I'm an American journalist in Iraq. And...

(END VIDEO CLIP)

WHITFIELD: The statement says, quote, "I've been asked to deliver a message from the martyrs brigade who want the American people to work on ending the bloodshed in Iraq." Garen goes on to say he is being treated well.

KYRA PHILLIPS, CNN ANCHOR: Harsh words, soft money, swift boats. The latest skirmish in the U.S. presidential race is still being fought on Vietnam and what John Kerry did there, and what he said later about it.

(BEGIN VIDEO CLIP)

U.S. SENATOR JOHN KERRY (D-MA): They had personally raped, cut off ears, cut off heads...

JOE PONDER, SWIFT BOAT VETERANS FOR TRUTH: The accusations that John Kerry made against the veterans who served in Vietnam was just devastating.

KERRY: ... randomly shot at civilians.

PONDER: And it hurt me more than any physical wounds I had.

KERRY: ... cut off limbs...

(END VIDEO CLIP)

PHILLIPS: So goes the latest attack from the anti-Kerry group that claims the Democratic presidential hopeful lied to win some of his medals. Legally, financially and otherwise, Swift Boat Veterans for Truth is separate from the Bush camp or GOP, but Kerry still accuses Bush of endorsing its claims by failing to publicly denounce them. Kerry, too, has soft-money allies, but he dipped into his own campaign treasury for the ad countering the harshest allegations.

(BEGIN VIDEO CLIP)

KERRY: I'm John Kerry and I approved this message.

ANNOUNCER: The people attacking John Kerry's war record are funded by Bush's big money supporters. Listen to someone was there, the man whose life John Kerry saved.

(END VIDEO CLIP) PHILLIPS: President Bush has stepped off the campaign trail to enjoy some downtime at his ranch in Texas, but it's not exactly a vacation. CNN's Jill Dougherty joins us from nearby there in Crawford -- Jill?

JILL DOUGHERTY, CNN CORRESPONDENT: Well, Kyra, that's right. And I'll give you a quote from the news briefing that we just had from Scott McClellan, the press secretary for the president. "Losing his cool," that's how McClellan describes the reaction of Senator John Kerry to the controversy over the attack ads. Initially, the question came up at the briefing, could he respond to a New York Times article, a rather detailed one, that alleged a web of connections between the people who are in and put together those swift boat ads and the Bush family high profile Texas figures and Karl Rove, who is the president's advisor. So McClellan said there is no connection, absolutely no connection, between the White House or the campaign and those people. And then he went on to go after Kerry.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I do think that Senator Kerry losing his cool should not be an excuse for him to lash out at the president with false and baseless attacks. I mean, where has the Kerry campaign been for the last year, while more than $62 million in funding through these shadowy groups have been used to negatively attack the president.

(END VIDEO CLIP)

DOUGHERTY: So the spokesman for the president said that Kerry has been noticeably silent on this issue, and also, he claims that this has fueled this kind of attack. He said we could put an end to this right now if Senator Kennedy -- Kerry would join President Bush and say, "Let's stop all these ads." -- Kyra?

PHILLIPS: Jill Dougherty, live from Crawford. Well, today, we're wondering whether the swift boat veterans controversy will sway your vote for president. You can still e-mail your comments to LIVE FROM at cnn.com. We're going to read some of them very shortly.

WHITFIELD: Well, news across America now. The Food and Drug Administration is preparing new warning labels for some anti- depressants. The FDA now says some anti-depressants could cause children to have suicidal tendencies. The agency has not said which drugs are in question or what the warning labels will say.

Officials near Houston, Texas, plan to let a natural gas fire burn itself out. The fire started yesterday when an explosion happened in an underground storage facility. A second blast occurred early this morning. No injuries have been reported, but people living in a three-mile radius have been evacuated.

The New York City Police Department is preparing for the upcoming GOP convention. Today it practiced dealing with possible scenarios that could happen at the convention. During one exercise, there was a mock protest, and police clashed with the fake demonstrators -- Kyra? PHILLIPS: Governor Piscopo? Say it ain't so, Joe. Now that New Jersey Governor McGreevey has revealed his intention to resign, some folks think "Saturday Night Live" alumnus and self-proclaimed Jersey guy, Joe Piscopo, is just what the Garden State needs. Now Piscopo spoke about the "Draft Piscopo" proposal -- can you say that all three times -- on CNN's AMERICAN MORNING.

(BEGIN VIDEO CLIP)

JOE PISCOPO, COMEDIAN: I had some serious people talk to me, Bill. We're very concerned about the state and that the -- you know, I wrote the jokes 20 years ago. But now, it's almost not funny the way Jersey's getting hit, and I'm reading The Wall Street Journal and I'm reading all these national publications, USA Today, saying the problems we have in Jersey. So the people that came to me and asked me to run, they're serious.

(END VIDEO CLIP)

WHITFIELD: Well, Piscopo's affection for New Jersey runs deep. His entire comedy career was dotted with Jersey caricatures and jokes. Some say the state may yet be the vehicle for another career in politics.

Are you from Jersey? I'm from Jersey.

PHILLIPS: Jersey. You've got to say Jersey right.

WHITFIELD: We'll talk about Olympics seventh heaven, seven straight shutouts for the U.S. softball team and 77 victories in a row. After a perfect run with a 3-0 win over Taiwan, the Americans are now set for a semifinal showdown against the Australians.

In the swimming pool, Michael Phelps strikes gold again. The U.S. dynamo wins his fifth gold medal in the men's 100-meter butterfly. Phelps also took gold earlier in the men's 200-meter individual medley, setting a new Olympic record in the process.

And in gymnastics, the long wait is over. Twenty years after Mary Lou Retton, Carly Patterson becomes the first American women to win gold in the all-around competition in so many years. The 16-year- old beat Svetlana Khorkina on her way to first place.

Well, next week, the man regarded as the most successful gymnastics coach in history will be our special guest on LIVE FROM. Bela Karolyi has produced nine Olympic champions, including Mary Lou Retton. His career spans 30 years, both her and in his native Romania. And join us next Wednesday, that's August 25th, when we talk to Bela Karolyi right here on LIVE FROM. He's responsible for Nadia Comaneci, too.

PHILLIPS: There you go. Not bad (INAUDIBLE) coach.

A courageous young woman coming back from a severe injury on the battlefield in Iraq. You'll be inspired by her story, just ahead on LIVE FROM. And the world over a barrel: Record oil prices and their potential affects on the global economy.

And a veteran television news anchor might be really mad that Regis Philbin showed up for work today. Details on just why straight ahead.

(COMMERCIAL BREAK)

ORELON SIDNEY, CNN METEOROLOGIST: I'm Orelon Sidney from the CNN weather center. Here's the big story this weekend: A cold front pushing across the eastern United States with thunderstorms and some heavy rain out of ahead of it. Another area of low pressure moves out of British Columbia and Alberta. By Sunday, you're going to find a pretty extensive area of rain and maybe even a few thunderstorms across the Pacific Northwest. The front drifts to the South on Sunday, but your temperatures in the North actually start to rebound. Highs will be in the 70s around the Great Lakes on Saturday. You'll be back into the 80s for the most part on Sunday.

(COMMERCIAL BREAK)

WHITFIELD: Well now to a story of courage and determination, an army soldier shares a distinction with only two other Iraq war veterans, but it's a distinction nobody would want. Pentagon correspondent Barbara Starr explains.

(BEGIN VIDEO CLIP)

BARBARA STARR, CNN CORRESPONDENT: Army First Lieutenant Dawn Halfaker more than keeps up as she works out alongside other amputees at Walter Reed Army Medical Center. She lost her right arm in Iraq after being hit by a rocket-propelled grenade.

DAWN HALFAKER, U.S. ARMY FIRST LIEUTENANT: It came back and through, and it took a big chunk out of here and then it came through this way and took off, basically, the top part of my arm.

STARR: She woke up days later at Walter Reed.

HALFAKER: I was screaming, you know, "don't cut my arm off" and things of that nature. So my dad calmed me down and told me you'd already lost your arm. So it's a lot to take in for just waking up.

STARR: A West Point graduate where she starred on the basketball team, Halfaker, 25 years old is only one of three female amputees from the war, a woman in combat now facing intensely personal challenges.

HALFAKER: The hair has been a big issue. As a female, you might relate. I can't do my own hair as of yet, which is very, very difficult. You know, you want to look nice, and it's hard. But then, moving down, you know, obviously, the bra. You know, it's hard to put on a bra with one hand. So, you know, guys aren't faced with that. You know, putting on makeup, I was trying to do this eye, you know, and I'm trying to put on mascara, so that was little bit tough.

STARR: Still, Halfaker thought the Army would be her life.

HALFAKER: You know, I had all these plans. All of a sudden your life is just turned upside down.

STARR: Now, moving on, but not forgetting.

HALFAKER: There's no way you can go through this alone. You need people to be able to talk to you, to vent, you know, to ask why.

STARR: Barbara Starr, CNN, Walter Reed Army Medical Center.

(END VIDEO CLIP)

PHILLIPS: And that's like one of many stories we've told.

WHITFIELD: Yes.

PHILLIPS: Is that they, even with that happens, they're still positive about it. And I think that's even more remarkable.

(CROSSTALK)

WHITFIELD: That's the major inspiration there.

PHILLIPS: Well, here's a question for you. How do you feel about all these attack ads in the presidential race? We'll have some of your e-mails in a just a bit.

Plus, live from our own Blondie moment. Debra Harry opens up to us about her biggest regrets. Stay with us.

(COMMERCIAL BREAK)

WHITFIELD: Well, we've been asking the question all day, will the swift boat veteran's controversy sway your vote for president?

PHILLIPS: We're going to take a moment now to read some of the e-mails we received from you. Here we go, Cris writes, "As a Vietnam veteran, I don't understand the controversy. Details about how many bullets were flying on a given day in the Mekong Delta are irrelevant. You either went when called or you hid and ran."

WHITFIELD: And then from Stan (ph), "Yes, these Vietnam ads will influence my vote. Senator Kerry has made this conflict the main thrust of his campaign. He has made a foolish error in bringing it back up. Now we are getting hours of free coverage of cable news. This move on his part shows that the ads have hit home, makes one think that he has no new ideas on merit and raises questions about his role."

PHILLIPS: And Libby writes: "Anybody that lets a so-called swift boat controversy sway his or her opinion about this election should have their head examined. This has no bearing about what's going on in this country. Talk about job losses, the economy, rising costs of health care. This is our future, not something that happened 35 years. Are we that stupid? Come on, America, wake up." WHITFIELD: And that was from Tom, and now this one's from Libby: "The swift boat ads will have no effect on my vote. However, any young person considering a military career will undoubtedly think twice about enlisting. With the attacks on McCain, Cleland and now Kerry, for their military service, why would anyone want to join?"

PHILLIPS: And Chris writes: "The ads won't influence my vote. Both Mr. Kerry and Mr. Bush should be ashamed for touting their bravery in the face of enemy attacks when so many people died in Vietnam and on 9/11. The true hero is modest about his accomplishments.

WHITFIELD: And from Julie with a final word: "I'm getting so sick of these two very professional men acting like teenagers with all their dirt-slinging. This just may persuade my vote right to Ralph Nader."

PHILLIPS: Well, are the attacks on Kerry's war record hurting his campaign? Wolf Blitzer takes a closer look today when at 3:30 eastern he host Judy Woodruff's INSIDE POLITICS.

Well many U.S. cities believe that having a resident orchestra helps increase their cultural status, but it's a costly asset that can be difficult to maintain in a sluggish economy. Susan Lisovicz takes a look now at one orchestra's struggle to stay afloat.

(BEGIN VIDEO CLIP)

SUSAN LISOVICZ, CNN CORRESPONDENT: The Philadelphia Orchestra is right up there with the Liberty Bell, the 76ers and the cheese steak as a beloved symbol of the city of brotherly love. Its orchestra has enthralled live audiences for more than a century. But there is discord in the Philadelphia Orchestra. Faced with a projected $4 million deficit, management is looking to cut its cost by 10 percent.

GLORIA DEPASQUALE, PHILADELPHIA ORCHESTRA: If we took one of the sports teams, if we started cutting away players and we starting cutting their salary, pretty soon they wouldn't be considered the same in the eyes of the entire industry and the entire -- their league.

LISOVICZ: But the league of the black-tie worker is changing. There are an estimated 350 orchestras nationwide that have the wherewithal to pay all their musicians. The league that tracks them says virtually all of these non-profit institutions are now operating in the red, casualties of the downturn in the economy that, in turn, hurt government funding, corporate sponsorships and endowments.

Orchestras are a matter of proud and prestige for many cities. And just as with sports teams, many orchestras feel they need a marquee player to bring in bigger crowds and more donations. But those marquee players deplete the budget even more.

The music directors and conductors in New York, San Francisco, Los Angeles and Chicago are each reportedly paid a million dollars a year or more, but the Philadelphia Orchestra says everyone is sharing the pain, including its president. STEVE ALBERTINI, PHILADELPHIA ORCHESTRA: Not only has Joe Kluger given back 10 percent of his salary, but members of the board have increased their contributions.

LISOVICZ: At the same, financially-strained communities are reevaluating their priorities.

JAMES ABRUZZO, NON-PROFIT CONSULTANT: At one time, every city felt it needed to have an orchestra, a ballet and an opera company. Now I think that there are other attractions that educate and bring people together.

LISOVICZ: And while individual donations to orchestras have remained constant, audience numbers are declining slightly. One reason could be that music classes have been steadily cut and the potential audience is simply unfamiliar with the material.

Susan Lisovicz, CNN, Philadelphia.

(END VIDEO CLIP)

PHILLIPS: Well, believe it or not, oil prices are dropping slightly this afternoon after coming perilously close to a $50 a barrel mark. But the close call has many observers fearful that a new price jump could trigger a global recession. Mary Snow at the New York Mercantile Exchange with the latest now -- Mary?

MARY SNOW, CNN CORRESPONDENT: Hi there, Kyra. You have the oil easing today, and closing this afternoon at $47.86 a barrel. But earlier in the day, it had come within almost spitting distance of $50 a barrel, which is seen as kind of a psychological milestone and certainly providing for a pretty jittery market. This as supply has been very tight and demand has been growing. We found out yesterday, just yesterday, that China's demand has grown about 40 percent.

And this is a market that's been watching the headlines, headlines coming out of Iraq initially today had had the market jittery, but some easing back. This of course is raising concerns though about what the future will bring, because many oil analysts and traders will say that they expect the price of oil to continue to climb. The big question is, how does it affect the customer? We spoke with some analysts who expect that the price of heating oil will climb this winter.

(BEGIN VIDEO CLIP)

PHIL FLYNN, ALARON TRADING CORP.: If we have a cold winter, and because oil prices have been going up quite dramatically, you may start to see some fuel switching, because crude oil prices are going to be close to $50 a barrel.

(END VIDEO CLIP)

SNOW: And some analysts, Kyra, are predicting that your heating bills could go up by about $350 overall this winter if oil prices stay so high. And of course another thing that's going to be impacted, gasoline prices -- Kyra?

PHILLIPS: Of course. We just keep sucking it up. All right, Mary Snow, thank you -- Fred?

WHITFIELD: That's huge. That seems criminal.

PHILLIPS: Hey, our heating bills already big enough in Atlanta. I know how bad it is.

WHITFIELD: Yes. All right. Well, how about some entertainment headlines? Have we got some for you. Doing time on the tube lands Regis Philbin in the record books. Today's "Live with Regis and Kelly" put the talk show host in the Guinness Book of World Records for most hours on camera. Philbin has logged 15,188 hours. Guess who he passes? Broadcaster Hugh Downs.

Well, Joan Rivers is going under the cosmetic knife again, but this time on television for everyone to see. The comedian/fashion critic will guest star as herself on the season finale of the cable hit "Nip/Tuck." Rivers has openly joked about her own cosmetic surgery. She's not ashamed. The publicist for the "Nip/Tuck" show won't say what procedure Rivers will have on the show, only that, quote, "it's something she's never had done before."

Well, she's infamous and famous. Now the publicist to the stars, Lizzie Grubman, remember her? Well, she's getting her own show. Grubman's "Power Girls" will premier next spring on MTV. The reality show will follow Grubman and her PR team from Manhattan to Miami. You might remember Grubman went to jail for plowing her SUV into a nightclub crowd in the Hamptons. That was back in 2001.

PHILLIPS: Well, she's infamous and famous. Now the publicist to the stars -- Well, we were just talking about Lizzie Grubman. How do you like that? Talking about having a blonde moment. Maybe that's a good segue way to my moment with the blonde moment, and I'm a red hand and acting like a blonde right now. But here we go. Rock legend Debra Harry of Blondie joined us to talk about her old hits and she got philosophical in one response to one of my questions. Here she is.

(BEGIN VIDEO CLIP)

PHILLIPS: I want to know the biggest regret and the best memory.

DEBRA HARRY, BLONDIE: Oh, I don't know if I can actually do that.

PHILLIPS: The first thing that comes to your mind.

HARRY: I think the biggest regret overall is that, you know, of all the people that I've met, you know, that I didn't sort of score better with them. You know, I was sort of not very good at social things. You know? So I sort of regretted I didn't stay friends with John Cleese or somebody like that, you know, that I met along the way. I guess, I don't know, the biggest happiest thing?

PHILLIPS: Yes, the happiest moment.

HARRY: I guess it was having "Heart of Glass" go to number one in the States. That was pretty exciting.

PHILLIPS: That's a song we all -- so when you step up to the mike, when you get ready to sing, when you think of your oldies, would that be the one song you never get tired of singing?

HARRY: No.

(END VIDEO CLIP)

PHILLIPS: She is so cute and she looks so good.

WHITFIELD: Oh, she looks fabulous.

PHILLIPS: Fifty-nine and she looks amazing.

WHITFIELD: God. Ageless.

PHILLIPS: Did you snag her cat by the way?

WHITFIELD: No. She just wanted me to hold on it to and style with it for a moment. I think she was happy to get it back. Because she was sporting it as she was living.

PHILLIPS: Do you think Wolf Blitzer ever listened to Blondie?

WHITFIELD: I'm sure he did. Wolf is cool.

PHILLIPS: Hi, Wolf.

WOLF BLITZER, CNN ANCHOR: I used to have a blonde moment myself. And as you can probably tell by now, those days are long gone.

PHILLIPS: He has salt and pepper moments.

BLITZER: No more blonde moments for me, Kyra. Thanks, Fredricka, very much.

It's Friday and that means it's almost time for Bill Schneider to award his political play of the week. This week's prize goes to man who's taking the president to task, urging him to, quote, "stop studying and start helping the American people."

Plus this, as the swift boat squabble continues into yet another day, we'll take a closer look at this whole controversy and if the attacks are actually hurting Senator Kerry. INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

WHITFIELD: INSIDE POLITICS in a moment, but first, now in the news. Iraq's Grand Ayatollah Ali Sistani is calling on the leader of insurgents to hand over the keys to a revered mosque in Najaf. Supporters of Muqtada al-Sadr have been holed up in the mosque complex and fighting U.S.-led forces.

Video of a French-American journalist held hostage in Iraq aired on the television network Al-Jazeera today. Micah Garen read a statement in the video urging America to end the bloodshed in Najaf. Aides to renegade Shiite cleric, Muqtada al-Sadr, say the journalist should be released today or tomorrow.

Escalating violence in Iraq took U.S. oil prices close to $50 a barrel today. U.S. light crude fell in late trading from a record high of $49.40 to $47.70 a barrel. Oil dealers are concerned further U.S. attacks on insurgents could mean damage to Iraq's oil infrastructure.

And now to Wolf Blitzer filling in for Judy Woodruff on INSIDE POLITICS.

(BEGIN VIDEO CLIP)

U.S. SENATOR JOHN KERRY (D-MA): They had personally raped, cut off ears, cut off heads

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