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Subway Bombing in Moscow; RNC Day Two Outlook; Floods in VA from TS Gaston

Aired August 31, 2004 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)
GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: We are winning, and we will win.

(END VIDEO CLIP)

KYRA PHILLIPS, CNN ANCHOR: President Bush with a strong message: victory in the war on terror.

MILES O'BRIEN, CNN ANCHOR: This, as his Republican Party hopes for victory in November, and help from two big stars tonight: the First Lady and Governor Schwarzenegger.

PHILLIPS: Terror attack: Two buses bombed in Israel. We'll have a live report from where it happened.

O'BRIEN: And deadly deluge: A tropical storm dumps on the East Coast, while a hurricane looms on the horizon.

From the CNN Center in Atlanta, I'm Miles O'Brien.

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

We begin this hour with breaking news out of Moscow: Reports of five people killed, maybe more, in a car explosion just outside a subway station. That's pretty much all we know at this moment.

But we will go to Ryan Chilcote now on the line out of Moscow. Ryan, what can you tell us about the explosion?

RYAN CHILCOTE, CNN CORRESPONDENT: Good afternoon, Kyra. Well, it looks right now as if one or perhaps two cars exploded outside of a busy subway station here in Moscow. It happened at 8:10 p.m. local time, which is, of course, when people would be making their way home from work.

The Interfax News Agency, which has been talking to some policemen who did not want to identify themselves, as saying that eight people were killed in this blast and 10 were wounded -- no idea yet, of course, whether this was some kind of terrorist act, whether this was some kind of criminal attack -- no real signs this early -- Kyra.

PHILLIPS: And Ryan, of course, this comes just a few days after the two Russian airliners crashed, and now there's an investigation into that, that terrorism may be involved.

Any talk at all from investigators about a possible link? The same individuals that investigated the scene of those airliners, are they responding also to this site?

CHILCOTE: Well, I'm sure they will be. That's the Federal Security Service. That's Russia's successor agency to the Soviet Union KGB, and their job is to look at all incidents where terrorism might be involved. Their primary responsibility is antiterrorism. And because the whole city is on edge, they will be looking at that.

I can tell you, I just came out of the airport, and they have increased security measures all throughout the city, even in the airport, after we got off the plane. This was flying into Moscow. Our bags were checked again, and they had a bomb-sniffing dog checking them out.

So, people are on edge here after the two terrorist attacks last week -- or the two attacks on the planes. And they're definitely going to look at this very carefully.

PHILLIPS: All right, our Ryan Chilcote there live, reporting from Moscow on an explosion that just took place.

Reports now, at least five, maybe more than that, individuals killed in an explosion just outside a subway station. Federal Security Service, the FSS, responding to the scene to investigate possible acts of terrorism. We'll follow that story -- Miles.

O'BRIEN: Now to presidential politics -- how to top tough-on- terror Monday? Try warm-and-fuzzy Tuesday.

Day Two of the Republican Convention devoted to domestic issues, and what the RNC calls People of Compassion. Primetime speakers include Education Secretary Rod Page, California Governor Arnold Schwarzenegger, and the First Lady, Laura Bush.

CNN's Bob Franken takes a look ahead for us. Hello, Bob.

BOB FRANKEN, CNN CORRESPONDENT: Hello. Now, this was supposed to be the week when the Republicans were on the offense, but they've had to play a little defense, too, particularly since President Bush was criticized for comments made on the "Today Show" yesterday about the war on terrorism. Part of the quote was, "I don't think you can win it." The Democrats pounced on that.

Well, the president had another chance. He was making a speech before the American Legion in Nashville, and he changed his tune.

(BEGIN VIDEO CLIP)

BUSH: In this different kind of war, we may never sit down at a peace table. But make no mistake about it, we are winning, and we will win.

(END VIDEO CLIP) FRANKEN: Well, that was the president speaking out of town. In here town, the featured speaker of the evening is Arnold Schwarzenegger, governor of California, somebody who is immensely popular out there in TV land, not necessarily so popular among the conservatives of the Republican Party. But he is one of the featured speakers this evening.

The other one, the First Lady, Laura Bush, who is going to close the evening with a very personal account with her daughters about their father the president, her husband the president. She also spoke this morning on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

LAURA BUSH, WIFE OF GEORGE W. BUSH: Twenty-seven ads that aren't from either campaign have been against both candidates. A lot of them have been against my husband.

And in fact, my husband and John McCain have both filed suit with the FEC to ask that they state a rule on getting rid of 527s. And I'm wondering if Senator Kerry will join them in that suit to make sure that 527s aren't there.

(END VIDEO CLIP)

FRANKEN: Of course, she was thinking about the ads about the swift boat performance of Senator Kerry, and 527s being those political, but non-affiliated organizations that have become so controversial.

And as she pointed out, both President Bush and John McCain, who's the author of campaign finance legislation, are trying to urge for some sort of prohibition against the unlimited spending of these 527s -- Miles.

O'BRIEN: CNN's Bob Franken in Manhattan. Thank you.

CNN's primetime coverage of the convention kicks off tonight, 7:00 Eastern, with Anderson Cooper, Wolf Blitzer, and Larry King -- the all-stars. And then, at 10:00 Eastern, 7:00 Pacific, California Governor Arnold Schwarzenegger takes the podium. And of course, you can see that live right here on CNN, followed by "NEWSNIGHT WITH AARON BROWN" and a special midnight edition of "LARRY KING LIVE" -- Kyra.

PHILLIPS: All-stars -- meanwhile, the little leaguers here, we'll keep going. RNC protesters have dubbed this a day of civil disobedience. And after yesterday, civil would be quite an improvement.

An otherwise peaceful march by the Poor People's Economic Human Rights Campaign. That ended near the convention site with an NYPD detective being knocked off his scooter and beaten senseless. He is expected to recover, though.

Now, over the past five days, almost 600 demonstrators have been arrested, most for less serious offenses. CNN's Deborah Feyerick is keeping count in the protest zone just outside Madison Square Garden. Luckily, it's a calm scene right now. Hi, Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Hey, there, Kyra. Well, it is absolutely a calm scene. The group that's organizing today is a different incident. They call themselves A31 -- that stands for August 31. They are trying to force change through sit-ins, through street theater, also through possible vandalism against corporations and donors that they believe have Republican ties.

Those incidents are going to be starting at about 4:00 -- those actions, I should say, where they go to different corporations and begin to protest outside. But they're going to end up here at about 7:00 at night. We're not sure whether, in fact, they're going to be going to the pen, where they're allowed to speak and demonstrate and protest, or whether, in fact, they're going to stage different events around the garden where the delegates are going to be showing up for this evening's events.

Now, a group of demonstrators right now are training how to get arrested. They're going to try to make it very difficult for police officers who try to respond. Police themselves have gotten a lot of training over the last couple of months, so they are ready for anything that will happen. As you mentioned, there was that one violent incident yesterday when the detective was pulled from his scooter.

This morning, 17 people were arrested -- 17 people, I just want to make that clear, were arrested in and around the Wall Street area. The charges expected against them -- disorderly conduct -- and even though most of these demonstrations have in fact been peaceful, the arrests now number somewhere close to 600.

Today as well, the War Resisters League, they're going to be demonstrating, People for the American Way, and an interfaith rally also taking place.

So, we're expecting a lot of peaceful rallies, a little bit of civil disobedience, and police are hoping not the kind of incident that they saw yesterday -- Kyra.

PHILLIPS: Deb, just real quickly, we were a bit confused. Did the protesters know this detective -- this NYPD detective was indeed a police officer? Is that why they attacked him?

FEYERICK: Well, that's a detail that we're trying to figure out right now, as well. We're getting reports of the incidents that are taking place and the charges that are being filed, but we're not really getting information about what sparked the incident, why that man that you see beating up the detective was acting so violently.

As a matter of fact, there was somebody from the Lawyers Guild who was seen standing right behind him, a woman in sort of a green- yellow cap.

A police officer even jumped in and actually began talking to this primary assailant, and now, police can't find him. And they want to, because they want to charge him for the assault. PHILLIPS: All right, Deb Feyerick, monitoring the protests that have been taking place, or lack thereof, at least right now. Thanks so much -- Miles.

O'BRIEN: The poster boy for anti-Republican protesters reaped a whirlwind of scorn last night inside the Garden. If you were watching CNN, you saw Republican Senator John McCain restate the case for war in Iraq, in the process slamming a certain disheveled documentarian in the gallery.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: Our choice wasn't between a benign status quo and the bloodshed of war. It was between war and a graver threat. Don't let anyone tell you otherwise, not our political opponents, not -- and certainly not, and certainly not a disingenuous filmmaker...

(END VIDEO CLIP)

O'BRIEN: Truth of the matter is he was loving it. That was Michael Moore, of course, smiling, waving, and later sharing his own interpretation with reporters.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, DIRECTOR: No amount of testimonials are going to help Bush at this convention, because of the thousand who have died, American soldiers, so far in Iraq. They come now from virtually every community across the country. And the people back home have seen those coffins come back, and they're asking the question: For what? And that's a question that they can't answer at this convention.

(END VIDEO CLIP)

O'BRIEN: Now, Moore was in the press box because he's writing commentaries for "USA Today" all this week. More proof this is a great country, folks. Check CNN's convention blog for the latest buzz from the convention floor, and share your thoughts with the world. It's online at CNN.com/blog.

PHILLIPS: Other unconventional headlines, I guess you could say. No lawsuit by the former aid who claims New Jersey's governor sexually harassed him. Golan Cipel says that James McGreevey's stunning resignation and political disgrace are vindication enough. McGreevey plans to leave office November 15, though Republicans want him out yesterday.

And from eastern Virginia, a shock from Schrock. Republican Congressman Ed Schrock, a deeply conservative lawyer from a deeply conservative district, says that he won't seek a third term after all. The reason? Allegations, so far unproven, that Schrock phoned a gay chat line. Republicans face a Friday deadline to find a replacement for Schrock in November.

O'BRIEN: Rooftop rescues and flooded streets as tropical storm Gaston dumps up to a foot of rain. Details ahead on that, plus Hurricane Frances threatening the U.S. mainland.

A procedure to help keep you healthy could actually end up putting you at risk for cancer. Details on a new warning about body scans.

And a volunteer who helped search for Laci Peterson takes the stand in her husband Scott's murder trial. We're live from the courthouse a little bit later.

(COMMERCIAL BREAK)

PHILLIPS: Amazing video from the East Coast. It looks like a bizarre accident, but this pile up is the result of Tropical Storm Gaston. Last night, Gaston left a trail of destruction through parts of Virginia. And police say at least five people have died as a result of heavy rains that that storm brought to the area. Extensive flood damage has closed a 20-block section of downtown Richmond.

Reporter Luke Duecy is with our Richmond affiliate, WRIC.

(BEGIN VIDEOTAPE)

LUKE DUECY, REPORTER, WRIC: We're here in Shockoe Bottom, perhaps the hardest hit area of Richmond. It's also the lowest depressed area here in Richmond, where all that water flowed dangerously last night. Let me step out of the way and show you the latest from the scene here as workers, dozens of them from the city and state, are here working feverishly to clean up.

Fire crews on the scene. There are still reports of gasoline leaks. There's oil down there. Wreckers by the half dozen down there cleaning out cars that have been overturned. And the cars from the video that we have, sometimes three, four stacked high, whole buildings are crumbled, trucks overturned, brick everywhere.

And the real story down there, business owners, many of them in their businesses now, and residents as well, wondering what to do, when relief will be on the way. Virginia Governor Mark Warner held a press conference here not too long ago, and he said that state relief is on the way, immediate state money is on the way to this area and others throughout central Virginia.

He also says that federal relief, should the state qualify for it, will be here. He is checking into whether or not the state qualifies for federal money, as well. Now, the big story again, five fatalities from Gaston, two here in the city of Richmond, three in surrounding areas. That confirmed today in a press conference by Governor Warner.

That's the latest from here. Luke Duecy for CNN.

(END VIDEOTAPE)

PHILLIPS: All right, well, you saw the pictures in that piece right there that Rick brought us out of Richmond. We've got some amateur video now just coming across. Jacqui, what's it look like? What do you see...

(WEATHER REPORT)

PHILLIPS: All right, Jacqui Jeras, watching it for us. Thanks so much.

Well, other news across America, let's go to New York, where the GOP convention isn't the only game in town. Serena Williams caused a major stir -- check this out -- at the U.S. Open with an ensemble that you could best describe as, I guess, Russell Crowe meets Nancy Sinatra.

But these boots aren't made for walking; they're made for kicking your opponent into the dirt, which is exactly what she did last night. Williams advanced to the second round in straight sets, and including that snappy denim skirt. I guess we should point that out, too.

And in Illinois, after news hit the fan that a tour bus for the Dave Matthews Band may have dumped raw sewage onto a tour boat, the state's attorney general filed suit. Now, the band's posted an open letter on its Web site saying members are coughing up DNA samples to determine if one of their buses was indeed the culprit. They promise to make amends if it's proven that their bus made that disgusting, unwanted deposit.

O'BRIEN: Well, what would you say?

PHILLIPS: I got a piece of Dave Matthews.

O'BRIEN: As Republicans get ready for the second night of their convention, a review of what has happened so far. Joining us to chew the political fat, LIVE FROM's version of Ebert and Roper, I guess you could say -- I don't know. Just work with us, will you?

Lisa Caputo, who was an advisor to former First Lady Hillary Rodham Clinton, in our New York bureau, and former Georgia Congressman, now CNN contributor, Bob Barr, at Madison Square Garden.

Ladies first. Lisa, good to see you. Let's talk about the first lady tonight. She's going to talk about women and the GOP. There's quite a gender gap between the two candidates, isn't there? What can the first lady say or do tonight to bring more women over to the George W. Bush camp?

LISA CAPUTO, FMR. HILLARY CLINTON AIDE: Well, I think the first lady has quite a challenge ahead of her tonight. I think what she needs to do is educate the American public about her husband, the George Bush that the public doesn't know, the family man, the side of George Bush that the country doesn't see.

With regard to the women's vote, you're right, Miles. I mean, this is a highly sought after vote. In many instances, people have touted it to be the swing vote. And you saw Teresa Heinz Kerry, during the Democratic Convention, really play to that vote, talking about women should be able to speak their own mind, have their own opinions, and be considered strong and independent.

What I think you'll see Laura Bush tonight do is try to play to the soccer mom, those mothers who work and are raising families at home, and as well as those mothers who stay at home. And she will try to appeal to their core set of values, family issues. And I think, you know, it will be interesting to see what she says versus what Teresa Heinz Kerry said.

O'BRIEN: All right. Bob Barr, is there kind of an anachronism to the GOP stance on women? Is it kind of an Ozzie and Harriet approach?

BOB BARR, POLITICAL ANALYST: Well, no. I think what you'll see with Laura Bush is not the sort of in-your-face, quote, "shove it," unquote, approach that Mrs. Kerry took at the Democratic Convention.

O'BRIEN: Well, wait a minute. You're assuming that's something that people don't like. Maybe people like that.

BARR: Well, they may. But I'm saying you're not going to see that from Mrs. Bush.

O'BRIEN: Oh, OK.

BARR: What you'll see from Mrs. Bush is a very straightforward and honest approach, which will talk about the strength of America through its families. It'll talk about what her husband, President George W. Bush, has done in terms of strengthening the ability of families to meet the challenges that face them, the tax reductions, the emphasis on education, the emphasis on meaningful healthcare, not government mandated healthcare, but meaningful healthcare.

And these are the things that I think American families, particularly wives, mothers, grandmothers, and working moms will want to see. And I think they'll be very pleased with the very moderate, measured response and message that Mrs. Bush, I suspect, will present tonight.

O'BRIEN: OK. Lisa -- go ahead.

CAPUTO: Miles, mind if I jump in here just...

O'BRIEN: No, of course.

CAPUTO: I want to pick up on something Congressman Barr said. He talked about a moderate message, and I think what you've seen, certainly over the past 24 hours, is the Republicans trying to position moderate speakers.

But when you look at the Republican platform, it's far from moderate. In fact, tonight...

O'BRIEN: All right, but Lisa, Lisa, isn't it...

CAPUTO: ... the theme tonight is compassionate conservatism. And let me just finish if I may, for one quick second. O'BRIEN: All right, yeah, go ahead, all right.

CAPUTO: You know, Laura Bush actually went out on the attack today, talking about the swift boat ads, you know, saying that her husband has called on the FEC to pull all the 529 ads, 527 ads, the organizations, and asking Senator Kerry to do the same. I think it's very interesting that the Republican Party is going out on the attack...

O'BRIEN: All right, but let me ask you this. Let me ask you about this whole notion of playing to the middle at the podium at these conventions. That's what the Democrats do too, right? I mean, that's the way conventions work. It's a time for parties to -- I'm sorry.

I think I have to take a break now. Somebody's screaming in my ear. I apologize. We'll be back with you in a moment.

CAPUTO: OK.

(COMMERCIAL BREAK)

O'BRIEN: All right, we'll back with Caputo and Barr. We paid a little rent. We're sorry about that guys. We were just building up a head of steam there.

Lisa, we were talking about how parties move toward the middle, both parties, at least at the podium at these conventions. So, when Democrats criticize Republicans for putting people like Arnold Schwarzenegger and John McCain, who are more moderate, on the podium, doesn't the same go for the Democrats?

CAPUTO: I wouldn't say putting Ted Kennedy on the podium in Boston was a move to the middle, certainly. But look, I mean, let's get to the facts. I mean, we're talking about compassionate conservatism tonight is the theme. Yet healthcare costs have risen by 50 percent, 44 million people are uninsured. We've lost 1.8 million jobs.

When are we going to hear from the administration during this convention about the plan to, you know, not squeeze the middle tax and put the country on the right track again? I think that's a valid point.

O'BRIEN: Let's talk about the war on terror for a minute. The president today -- let's listen to what he had to say about whether there can be a victory in the war on terror. Apparently, we don't have it.

Well, imagine the president of the United States saying, "We will win the war on terror." Just yesterday, he said can't necessarily win it. Bob Barr, that sounds like a flip flop to me.

BARR: Well, I think what we're seeing is a statement that is totally accurate, perhaps in-artfully delivered. And that is that we will always be facing, in the modern world, a problem with terrorism. And I think when the president said you can never truly win the war on terrorism, that's what he was reflecting.

O'BRIEN: But today, he says we can win it.

BARR: Well, I haven't spoken to him about it. I'm not quite sure exactly, then, whether we can or we can't. But I think the point is that it is a problem that America is going to have to face for the foreseeable future, and how we respond to that threat really, indeed, is a central theme of this campaign.

And this administration, very properly so, is bringing out and trotting out its record over the last three years as evidence that it can and does know how to deal with the war on terror, and that for the future, for the foreseeable future, we're going to be facing this.

O'BRIEN: But politically, the timing isn't very good, to be making statements that contradict each other, right as the convention begins...

BARR: Well, there's never a good time for that, in that manner, certainly. So, from that standpoint, the president needs to be a little bit more careful about the consistency of his statements.

O'BRIEN: Well, Lisa, let's talk -- final thought here. I know you want to say something about that. But let's talk about Arnold Schwarzenegger. He is the kind of Republican that really scares Democrats, right? I mean, because he really does appeal to a broad sector of this country?

CAPUTO: Well, he's a movie star, and you know, he's an entertainer, and you know, he appeals to the pop culture element of our society. One would have to question what his credentials are to be an elected governor of the State of California. So, clearly, they're going the pop culture route tonight, trying to get into television rooms all across the country.

If I might, Miles, just to make one final point on what Congressman Barr said. You know, you had Rudy Giuliani last night saying the president is dedicated to winning the war on terrorism. Then you had the president say we can't win it. And the proof is in the pudding.

O'BRIEN: No, no, now he says we can win it.

CAPUTO: OK, all right, well, he's accusing John Kerry of flip- flopping...

O'BRIEN: Let's get it straight. We're back to winning.

CAPUTO: OK, well, we're back to winning. But let's get to the facts. I live in New York. I live in New York City. New York rates 35th per capita in terms of spending on terrorism. The NYPD and the New York Fire Department are not adequately funded to fight the war on terror. In fact, the New York Police Department needs training on terrorism measures...

BARR: Lisa, Lisa, have you walked on the streets of New York? There is a policeman every five feet here. Where have you been?

CAPUTO: I'm working today and living downtown. But what I can tell you is that federal funding for terrorism is...

BARR: Oh, there is plenty of federal funding out there, Lisa. There is more than enough.

CAPUTO: No, there's not, Congressman, with all due respect. I live here. You don't, sir.

O'BRIEN: All right, got to leave it at that. Lisa Caputo, Bob Barr, thank you very much.

CAPUTO: Nice to be with you.

BARR: Thank you.

O'BRIEN: Appreciate it -- Kyra.

PHILLIPS: Well, are CEOs getting rewarded for outsourcing jobs? A new study says yes, they are. Fred Katayama live from the New York Stock Exchange...

(STOCK MARKET REPORT)

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Aired August 31, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: We are winning, and we will win.

(END VIDEO CLIP)

KYRA PHILLIPS, CNN ANCHOR: President Bush with a strong message: victory in the war on terror.

MILES O'BRIEN, CNN ANCHOR: This, as his Republican Party hopes for victory in November, and help from two big stars tonight: the First Lady and Governor Schwarzenegger.

PHILLIPS: Terror attack: Two buses bombed in Israel. We'll have a live report from where it happened.

O'BRIEN: And deadly deluge: A tropical storm dumps on the East Coast, while a hurricane looms on the horizon.

From the CNN Center in Atlanta, I'm Miles O'Brien.

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

We begin this hour with breaking news out of Moscow: Reports of five people killed, maybe more, in a car explosion just outside a subway station. That's pretty much all we know at this moment.

But we will go to Ryan Chilcote now on the line out of Moscow. Ryan, what can you tell us about the explosion?

RYAN CHILCOTE, CNN CORRESPONDENT: Good afternoon, Kyra. Well, it looks right now as if one or perhaps two cars exploded outside of a busy subway station here in Moscow. It happened at 8:10 p.m. local time, which is, of course, when people would be making their way home from work.

The Interfax News Agency, which has been talking to some policemen who did not want to identify themselves, as saying that eight people were killed in this blast and 10 were wounded -- no idea yet, of course, whether this was some kind of terrorist act, whether this was some kind of criminal attack -- no real signs this early -- Kyra.

PHILLIPS: And Ryan, of course, this comes just a few days after the two Russian airliners crashed, and now there's an investigation into that, that terrorism may be involved.

Any talk at all from investigators about a possible link? The same individuals that investigated the scene of those airliners, are they responding also to this site?

CHILCOTE: Well, I'm sure they will be. That's the Federal Security Service. That's Russia's successor agency to the Soviet Union KGB, and their job is to look at all incidents where terrorism might be involved. Their primary responsibility is antiterrorism. And because the whole city is on edge, they will be looking at that.

I can tell you, I just came out of the airport, and they have increased security measures all throughout the city, even in the airport, after we got off the plane. This was flying into Moscow. Our bags were checked again, and they had a bomb-sniffing dog checking them out.

So, people are on edge here after the two terrorist attacks last week -- or the two attacks on the planes. And they're definitely going to look at this very carefully.

PHILLIPS: All right, our Ryan Chilcote there live, reporting from Moscow on an explosion that just took place.

Reports now, at least five, maybe more than that, individuals killed in an explosion just outside a subway station. Federal Security Service, the FSS, responding to the scene to investigate possible acts of terrorism. We'll follow that story -- Miles.

O'BRIEN: Now to presidential politics -- how to top tough-on- terror Monday? Try warm-and-fuzzy Tuesday.

Day Two of the Republican Convention devoted to domestic issues, and what the RNC calls People of Compassion. Primetime speakers include Education Secretary Rod Page, California Governor Arnold Schwarzenegger, and the First Lady, Laura Bush.

CNN's Bob Franken takes a look ahead for us. Hello, Bob.

BOB FRANKEN, CNN CORRESPONDENT: Hello. Now, this was supposed to be the week when the Republicans were on the offense, but they've had to play a little defense, too, particularly since President Bush was criticized for comments made on the "Today Show" yesterday about the war on terrorism. Part of the quote was, "I don't think you can win it." The Democrats pounced on that.

Well, the president had another chance. He was making a speech before the American Legion in Nashville, and he changed his tune.

(BEGIN VIDEO CLIP)

BUSH: In this different kind of war, we may never sit down at a peace table. But make no mistake about it, we are winning, and we will win.

(END VIDEO CLIP) FRANKEN: Well, that was the president speaking out of town. In here town, the featured speaker of the evening is Arnold Schwarzenegger, governor of California, somebody who is immensely popular out there in TV land, not necessarily so popular among the conservatives of the Republican Party. But he is one of the featured speakers this evening.

The other one, the First Lady, Laura Bush, who is going to close the evening with a very personal account with her daughters about their father the president, her husband the president. She also spoke this morning on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

LAURA BUSH, WIFE OF GEORGE W. BUSH: Twenty-seven ads that aren't from either campaign have been against both candidates. A lot of them have been against my husband.

And in fact, my husband and John McCain have both filed suit with the FEC to ask that they state a rule on getting rid of 527s. And I'm wondering if Senator Kerry will join them in that suit to make sure that 527s aren't there.

(END VIDEO CLIP)

FRANKEN: Of course, she was thinking about the ads about the swift boat performance of Senator Kerry, and 527s being those political, but non-affiliated organizations that have become so controversial.

And as she pointed out, both President Bush and John McCain, who's the author of campaign finance legislation, are trying to urge for some sort of prohibition against the unlimited spending of these 527s -- Miles.

O'BRIEN: CNN's Bob Franken in Manhattan. Thank you.

CNN's primetime coverage of the convention kicks off tonight, 7:00 Eastern, with Anderson Cooper, Wolf Blitzer, and Larry King -- the all-stars. And then, at 10:00 Eastern, 7:00 Pacific, California Governor Arnold Schwarzenegger takes the podium. And of course, you can see that live right here on CNN, followed by "NEWSNIGHT WITH AARON BROWN" and a special midnight edition of "LARRY KING LIVE" -- Kyra.

PHILLIPS: All-stars -- meanwhile, the little leaguers here, we'll keep going. RNC protesters have dubbed this a day of civil disobedience. And after yesterday, civil would be quite an improvement.

An otherwise peaceful march by the Poor People's Economic Human Rights Campaign. That ended near the convention site with an NYPD detective being knocked off his scooter and beaten senseless. He is expected to recover, though.

Now, over the past five days, almost 600 demonstrators have been arrested, most for less serious offenses. CNN's Deborah Feyerick is keeping count in the protest zone just outside Madison Square Garden. Luckily, it's a calm scene right now. Hi, Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Hey, there, Kyra. Well, it is absolutely a calm scene. The group that's organizing today is a different incident. They call themselves A31 -- that stands for August 31. They are trying to force change through sit-ins, through street theater, also through possible vandalism against corporations and donors that they believe have Republican ties.

Those incidents are going to be starting at about 4:00 -- those actions, I should say, where they go to different corporations and begin to protest outside. But they're going to end up here at about 7:00 at night. We're not sure whether, in fact, they're going to be going to the pen, where they're allowed to speak and demonstrate and protest, or whether, in fact, they're going to stage different events around the garden where the delegates are going to be showing up for this evening's events.

Now, a group of demonstrators right now are training how to get arrested. They're going to try to make it very difficult for police officers who try to respond. Police themselves have gotten a lot of training over the last couple of months, so they are ready for anything that will happen. As you mentioned, there was that one violent incident yesterday when the detective was pulled from his scooter.

This morning, 17 people were arrested -- 17 people, I just want to make that clear, were arrested in and around the Wall Street area. The charges expected against them -- disorderly conduct -- and even though most of these demonstrations have in fact been peaceful, the arrests now number somewhere close to 600.

Today as well, the War Resisters League, they're going to be demonstrating, People for the American Way, and an interfaith rally also taking place.

So, we're expecting a lot of peaceful rallies, a little bit of civil disobedience, and police are hoping not the kind of incident that they saw yesterday -- Kyra.

PHILLIPS: Deb, just real quickly, we were a bit confused. Did the protesters know this detective -- this NYPD detective was indeed a police officer? Is that why they attacked him?

FEYERICK: Well, that's a detail that we're trying to figure out right now, as well. We're getting reports of the incidents that are taking place and the charges that are being filed, but we're not really getting information about what sparked the incident, why that man that you see beating up the detective was acting so violently.

As a matter of fact, there was somebody from the Lawyers Guild who was seen standing right behind him, a woman in sort of a green- yellow cap.

A police officer even jumped in and actually began talking to this primary assailant, and now, police can't find him. And they want to, because they want to charge him for the assault. PHILLIPS: All right, Deb Feyerick, monitoring the protests that have been taking place, or lack thereof, at least right now. Thanks so much -- Miles.

O'BRIEN: The poster boy for anti-Republican protesters reaped a whirlwind of scorn last night inside the Garden. If you were watching CNN, you saw Republican Senator John McCain restate the case for war in Iraq, in the process slamming a certain disheveled documentarian in the gallery.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: Our choice wasn't between a benign status quo and the bloodshed of war. It was between war and a graver threat. Don't let anyone tell you otherwise, not our political opponents, not -- and certainly not, and certainly not a disingenuous filmmaker...

(END VIDEO CLIP)

O'BRIEN: Truth of the matter is he was loving it. That was Michael Moore, of course, smiling, waving, and later sharing his own interpretation with reporters.

(BEGIN VIDEO CLIP)

MICHAEL MOORE, DIRECTOR: No amount of testimonials are going to help Bush at this convention, because of the thousand who have died, American soldiers, so far in Iraq. They come now from virtually every community across the country. And the people back home have seen those coffins come back, and they're asking the question: For what? And that's a question that they can't answer at this convention.

(END VIDEO CLIP)

O'BRIEN: Now, Moore was in the press box because he's writing commentaries for "USA Today" all this week. More proof this is a great country, folks. Check CNN's convention blog for the latest buzz from the convention floor, and share your thoughts with the world. It's online at CNN.com/blog.

PHILLIPS: Other unconventional headlines, I guess you could say. No lawsuit by the former aid who claims New Jersey's governor sexually harassed him. Golan Cipel says that James McGreevey's stunning resignation and political disgrace are vindication enough. McGreevey plans to leave office November 15, though Republicans want him out yesterday.

And from eastern Virginia, a shock from Schrock. Republican Congressman Ed Schrock, a deeply conservative lawyer from a deeply conservative district, says that he won't seek a third term after all. The reason? Allegations, so far unproven, that Schrock phoned a gay chat line. Republicans face a Friday deadline to find a replacement for Schrock in November.

O'BRIEN: Rooftop rescues and flooded streets as tropical storm Gaston dumps up to a foot of rain. Details ahead on that, plus Hurricane Frances threatening the U.S. mainland.

A procedure to help keep you healthy could actually end up putting you at risk for cancer. Details on a new warning about body scans.

And a volunteer who helped search for Laci Peterson takes the stand in her husband Scott's murder trial. We're live from the courthouse a little bit later.

(COMMERCIAL BREAK)

PHILLIPS: Amazing video from the East Coast. It looks like a bizarre accident, but this pile up is the result of Tropical Storm Gaston. Last night, Gaston left a trail of destruction through parts of Virginia. And police say at least five people have died as a result of heavy rains that that storm brought to the area. Extensive flood damage has closed a 20-block section of downtown Richmond.

Reporter Luke Duecy is with our Richmond affiliate, WRIC.

(BEGIN VIDEOTAPE)

LUKE DUECY, REPORTER, WRIC: We're here in Shockoe Bottom, perhaps the hardest hit area of Richmond. It's also the lowest depressed area here in Richmond, where all that water flowed dangerously last night. Let me step out of the way and show you the latest from the scene here as workers, dozens of them from the city and state, are here working feverishly to clean up.

Fire crews on the scene. There are still reports of gasoline leaks. There's oil down there. Wreckers by the half dozen down there cleaning out cars that have been overturned. And the cars from the video that we have, sometimes three, four stacked high, whole buildings are crumbled, trucks overturned, brick everywhere.

And the real story down there, business owners, many of them in their businesses now, and residents as well, wondering what to do, when relief will be on the way. Virginia Governor Mark Warner held a press conference here not too long ago, and he said that state relief is on the way, immediate state money is on the way to this area and others throughout central Virginia.

He also says that federal relief, should the state qualify for it, will be here. He is checking into whether or not the state qualifies for federal money, as well. Now, the big story again, five fatalities from Gaston, two here in the city of Richmond, three in surrounding areas. That confirmed today in a press conference by Governor Warner.

That's the latest from here. Luke Duecy for CNN.

(END VIDEOTAPE)

PHILLIPS: All right, well, you saw the pictures in that piece right there that Rick brought us out of Richmond. We've got some amateur video now just coming across. Jacqui, what's it look like? What do you see...

(WEATHER REPORT)

PHILLIPS: All right, Jacqui Jeras, watching it for us. Thanks so much.

Well, other news across America, let's go to New York, where the GOP convention isn't the only game in town. Serena Williams caused a major stir -- check this out -- at the U.S. Open with an ensemble that you could best describe as, I guess, Russell Crowe meets Nancy Sinatra.

But these boots aren't made for walking; they're made for kicking your opponent into the dirt, which is exactly what she did last night. Williams advanced to the second round in straight sets, and including that snappy denim skirt. I guess we should point that out, too.

And in Illinois, after news hit the fan that a tour bus for the Dave Matthews Band may have dumped raw sewage onto a tour boat, the state's attorney general filed suit. Now, the band's posted an open letter on its Web site saying members are coughing up DNA samples to determine if one of their buses was indeed the culprit. They promise to make amends if it's proven that their bus made that disgusting, unwanted deposit.

O'BRIEN: Well, what would you say?

PHILLIPS: I got a piece of Dave Matthews.

O'BRIEN: As Republicans get ready for the second night of their convention, a review of what has happened so far. Joining us to chew the political fat, LIVE FROM's version of Ebert and Roper, I guess you could say -- I don't know. Just work with us, will you?

Lisa Caputo, who was an advisor to former First Lady Hillary Rodham Clinton, in our New York bureau, and former Georgia Congressman, now CNN contributor, Bob Barr, at Madison Square Garden.

Ladies first. Lisa, good to see you. Let's talk about the first lady tonight. She's going to talk about women and the GOP. There's quite a gender gap between the two candidates, isn't there? What can the first lady say or do tonight to bring more women over to the George W. Bush camp?

LISA CAPUTO, FMR. HILLARY CLINTON AIDE: Well, I think the first lady has quite a challenge ahead of her tonight. I think what she needs to do is educate the American public about her husband, the George Bush that the public doesn't know, the family man, the side of George Bush that the country doesn't see.

With regard to the women's vote, you're right, Miles. I mean, this is a highly sought after vote. In many instances, people have touted it to be the swing vote. And you saw Teresa Heinz Kerry, during the Democratic Convention, really play to that vote, talking about women should be able to speak their own mind, have their own opinions, and be considered strong and independent.

What I think you'll see Laura Bush tonight do is try to play to the soccer mom, those mothers who work and are raising families at home, and as well as those mothers who stay at home. And she will try to appeal to their core set of values, family issues. And I think, you know, it will be interesting to see what she says versus what Teresa Heinz Kerry said.

O'BRIEN: All right. Bob Barr, is there kind of an anachronism to the GOP stance on women? Is it kind of an Ozzie and Harriet approach?

BOB BARR, POLITICAL ANALYST: Well, no. I think what you'll see with Laura Bush is not the sort of in-your-face, quote, "shove it," unquote, approach that Mrs. Kerry took at the Democratic Convention.

O'BRIEN: Well, wait a minute. You're assuming that's something that people don't like. Maybe people like that.

BARR: Well, they may. But I'm saying you're not going to see that from Mrs. Bush.

O'BRIEN: Oh, OK.

BARR: What you'll see from Mrs. Bush is a very straightforward and honest approach, which will talk about the strength of America through its families. It'll talk about what her husband, President George W. Bush, has done in terms of strengthening the ability of families to meet the challenges that face them, the tax reductions, the emphasis on education, the emphasis on meaningful healthcare, not government mandated healthcare, but meaningful healthcare.

And these are the things that I think American families, particularly wives, mothers, grandmothers, and working moms will want to see. And I think they'll be very pleased with the very moderate, measured response and message that Mrs. Bush, I suspect, will present tonight.

O'BRIEN: OK. Lisa -- go ahead.

CAPUTO: Miles, mind if I jump in here just...

O'BRIEN: No, of course.

CAPUTO: I want to pick up on something Congressman Barr said. He talked about a moderate message, and I think what you've seen, certainly over the past 24 hours, is the Republicans trying to position moderate speakers.

But when you look at the Republican platform, it's far from moderate. In fact, tonight...

O'BRIEN: All right, but Lisa, Lisa, isn't it...

CAPUTO: ... the theme tonight is compassionate conservatism. And let me just finish if I may, for one quick second. O'BRIEN: All right, yeah, go ahead, all right.

CAPUTO: You know, Laura Bush actually went out on the attack today, talking about the swift boat ads, you know, saying that her husband has called on the FEC to pull all the 529 ads, 527 ads, the organizations, and asking Senator Kerry to do the same. I think it's very interesting that the Republican Party is going out on the attack...

O'BRIEN: All right, but let me ask you this. Let me ask you about this whole notion of playing to the middle at the podium at these conventions. That's what the Democrats do too, right? I mean, that's the way conventions work. It's a time for parties to -- I'm sorry.

I think I have to take a break now. Somebody's screaming in my ear. I apologize. We'll be back with you in a moment.

CAPUTO: OK.

(COMMERCIAL BREAK)

O'BRIEN: All right, we'll back with Caputo and Barr. We paid a little rent. We're sorry about that guys. We were just building up a head of steam there.

Lisa, we were talking about how parties move toward the middle, both parties, at least at the podium at these conventions. So, when Democrats criticize Republicans for putting people like Arnold Schwarzenegger and John McCain, who are more moderate, on the podium, doesn't the same go for the Democrats?

CAPUTO: I wouldn't say putting Ted Kennedy on the podium in Boston was a move to the middle, certainly. But look, I mean, let's get to the facts. I mean, we're talking about compassionate conservatism tonight is the theme. Yet healthcare costs have risen by 50 percent, 44 million people are uninsured. We've lost 1.8 million jobs.

When are we going to hear from the administration during this convention about the plan to, you know, not squeeze the middle tax and put the country on the right track again? I think that's a valid point.

O'BRIEN: Let's talk about the war on terror for a minute. The president today -- let's listen to what he had to say about whether there can be a victory in the war on terror. Apparently, we don't have it.

Well, imagine the president of the United States saying, "We will win the war on terror." Just yesterday, he said can't necessarily win it. Bob Barr, that sounds like a flip flop to me.

BARR: Well, I think what we're seeing is a statement that is totally accurate, perhaps in-artfully delivered. And that is that we will always be facing, in the modern world, a problem with terrorism. And I think when the president said you can never truly win the war on terrorism, that's what he was reflecting.

O'BRIEN: But today, he says we can win it.

BARR: Well, I haven't spoken to him about it. I'm not quite sure exactly, then, whether we can or we can't. But I think the point is that it is a problem that America is going to have to face for the foreseeable future, and how we respond to that threat really, indeed, is a central theme of this campaign.

And this administration, very properly so, is bringing out and trotting out its record over the last three years as evidence that it can and does know how to deal with the war on terror, and that for the future, for the foreseeable future, we're going to be facing this.

O'BRIEN: But politically, the timing isn't very good, to be making statements that contradict each other, right as the convention begins...

BARR: Well, there's never a good time for that, in that manner, certainly. So, from that standpoint, the president needs to be a little bit more careful about the consistency of his statements.

O'BRIEN: Well, Lisa, let's talk -- final thought here. I know you want to say something about that. But let's talk about Arnold Schwarzenegger. He is the kind of Republican that really scares Democrats, right? I mean, because he really does appeal to a broad sector of this country?

CAPUTO: Well, he's a movie star, and you know, he's an entertainer, and you know, he appeals to the pop culture element of our society. One would have to question what his credentials are to be an elected governor of the State of California. So, clearly, they're going the pop culture route tonight, trying to get into television rooms all across the country.

If I might, Miles, just to make one final point on what Congressman Barr said. You know, you had Rudy Giuliani last night saying the president is dedicated to winning the war on terrorism. Then you had the president say we can't win it. And the proof is in the pudding.

O'BRIEN: No, no, now he says we can win it.

CAPUTO: OK, all right, well, he's accusing John Kerry of flip- flopping...

O'BRIEN: Let's get it straight. We're back to winning.

CAPUTO: OK, well, we're back to winning. But let's get to the facts. I live in New York. I live in New York City. New York rates 35th per capita in terms of spending on terrorism. The NYPD and the New York Fire Department are not adequately funded to fight the war on terror. In fact, the New York Police Department needs training on terrorism measures...

BARR: Lisa, Lisa, have you walked on the streets of New York? There is a policeman every five feet here. Where have you been?

CAPUTO: I'm working today and living downtown. But what I can tell you is that federal funding for terrorism is...

BARR: Oh, there is plenty of federal funding out there, Lisa. There is more than enough.

CAPUTO: No, there's not, Congressman, with all due respect. I live here. You don't, sir.

O'BRIEN: All right, got to leave it at that. Lisa Caputo, Bob Barr, thank you very much.

CAPUTO: Nice to be with you.

BARR: Thank you.

O'BRIEN: Appreciate it -- Kyra.

PHILLIPS: Well, are CEOs getting rewarded for outsourcing jobs? A new study says yes, they are. Fred Katayama live from the New York Stock Exchange...

(STOCK MARKET REPORT)

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