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Frances' Fury; Senators, 9/11 Panel Members Announce New Bills; Powell Speaks About Russian Terrorists

Aired September 07, 2004 - 13:35   ET

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

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


KYRA PHILLIPS, CNN ANCHOR: In the news now, we're ready to take you -- or getting ready, rather, to take you live to a news conference at any moment by Republican Senator John McCain and Democratic Senator Joe Lieberman. This comes as Congress reconvenes. Live pictures now. It's giving itself one month to act on the 9/11 Commission recommendations. The senators will unveil legislation that they're introducing to implement the panel response to its list of recommended reform since 9/11.
Grim news from Iraq, with the combat death of another U.S. soldier. That brings the number killed to 999 since the war began. The military says a U.S. patrol was attacked in the western part of Baghdad.

Protesting terror and mourning the dead. Thousands of Russians packed the area near Red Square in Moscow. Meantime, more funerals in Beslan. More than 300 hostages, most of them children, died at that shootout at the school.

MILES O'BRIEN, CNN ANCHOR: Florida is reeling from Frances. The hurricane has hustled its way out of the state, leaving a lot of damage behind. President Bush planning another visit to Florida tomorrow. He toured the damage after Hurricane Charley came through about three weeks or so ago. Frances has claimed at least 13 lives -- 10 in Florida, one in Georgia, two in the Bahamas.

What's left of the storm is pushing through the southeast now, but the danger is not over in Florida. For example, flooded rivers won't reach their peak for another day or two.

Meanwhile, thousands of volunteers are helping on the cleanup.

(BEGIN VIDEO CLIP)

KAREN HAGAN, RED CROSS: We've had about 10,000 Red Cross volunteers and staff come into Florida. We've had to move some of the folks that were still assisting in Hurricane Charley up to help with sheltering and mass care. And we continue to send people in from the southeast and from all over the country.

(END VIDEO CLIP)

PHILLIPS: Financial losses from Frances may turn out to be less than feared. A private estimate from Risk Management Solutions puts insured losses at $3 billion to $6 billion. Well, that's much lower than the first estimate of up to $10 billion in damage. Some of the big losses are in Florida's agricultural industry, especially citrus.

For the latest now, we go live by phone to Charles Bronson. He's the state's agricultural and also consumer affairs commissioner.

Charles, great to have you again. I know there's a little bit of good news. We're going to get to that in a moment.

But let's have a reality check with regard to what people around the country depend on out of Florida. I want to talk about citrus. I want to talk about oysters, cattle and nursery. Let's start with the citrus industry.

CHARLES BRONSON, AGRICULTURE & CONSUMER SERVICES COMMISSIONER: Well, the citrus industry has taken some major hits. Across the state, as you know, Hurricane Charley got into about 35 percent of the citrus industry. This Hurricane Frances has hit the majority of the fresh fruit industry in Florida, as well as some of the juice industry, and the majority of the grapefruit industry in Florida. And those losses, especially along those coastal counties, is going to be tremendous.

PHILLIPS: So when it comes to fruits and juices, not only an impact on folks there in Florida, but around the state, it's going to be tougher for us or more expensive for us to get these items?

BRONSON: Well, for fresh fruit especially, there's going to be very little fresh fruit available out of Florida, probably this year. We have not -- I have not visually taken a look at the crop damage. I will be doing that tomorrow. We're flying down to the area to take a look, and it will be probably another week to 10 days before we get an accurate figure on the citrus losses.

PHILLIPS: All right, commissioner, what about oysters and clams?

BRONSON: Well, the oyster and clam industry have taken a major hit in Florida. Not only are some of the infrastructures that they used for clamming industry destroyed, but the amount of fresh water in both the clam and the oyster areas are going to kill those seafoods, simply because they cannot take that kind of fresh water intrusion.

PHILLIPS: All right, Charles Bronson, the commissioner of agriculture and consumer affairs, I apologize for cutting this short. We promise to follow up with you in the next 24 hours.

We want to take you now live to that news conference we told you about. Actually, it's the 9/11 Commission. Right now, you're looking at Senator Joseph Lieberman, briefing now fellow lawmakers on implementing their recommendations from the 9/11 investigation. Let's listen in.

(JOINED IN PROGRESS)

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: ... of our many different intelligence agencies. But I want to stress that this legislation goes on to enact all the other major reforms called for by the 9/11 Commission. For example, the bill would: establish a far-reaching information sharing network to promote the sharing of intelligence and homeland security information throughout the federal, state, and local governments; develop an integrated system to ensure adequate screening at the nation's entry points, internal transportation systems, and critical infrastructure; make it harder to acquire fraudulent birth certificates, drivers' licenses, and other form of identification that terrorists hide behind; improve transportation security, including strengthening the screening for explosives on airplanes; require development of a transportation security strategy that will analyze and prioritize risks to all modes of transportation, and then craft plan to protect them; increase aid to Afghanistan; strengthen the U.S. commitment to Pakistan and open new avenues of dialogue, diplomacy, and development with the Muslim world; put in place a structure to make sure that civil liberties and privacy are protected, as we necessarily increase the role of government to protect the American people from terrorism; and finally, enact Congressional reorganization to provide better oversight of intelligence and homeland security by Congress.

As you know, the Senate leadership has assigned the Governmental Affairs Committee the responsibility of considering the commission's recommendations on executive branch reorganization and reporting, a bill to the Senate by October 1st. Chairman Susan Collins and I and our committee have been is holding hearings since July and are working on a committee bill that I am confident we will mark up and report to the Senate floor before September 27th, ahead of our schedule, our deadline.

The work on both pieces of legislation -- this one and the Governmental Affairs Committee bill -- has proceeded separately, but collaboratively. Each, I believe, has strengthened and informed the other. I look forward to the committee's markup during the week of September 20th, and Senators McCain, Specter, Bayh, and I hope that the work we and our staffs have done on this bill will contribute to an expeditious process in the Government Affairs Committee.

Finally, debate on this legislation will take place, as we all know, in the middle of a presidential and Congressional election campaign. And there are going to be differences of opinion about these proposals, because the 9/11 commission has recommended and this bill would enact bold and comprehensive reform that changes the status quo, because the status quo in intelligence and diplomacy has failed us.

But we are confident standing shoulder to shoulder across party lines today that the differences that come up in the debate on this legislation will not be partisan. The members of Congress will meet the standards set by the commission of rising above party loyalty to put the nation's security first. And that we will pass strong legislation soon that will enable us to say to the American people -- especially those who lost loved ones on September 11th -- that we have done everything possible to prevent another terrorist attack like September 11th from happening again. Now...

PHILLIPS: All right, we apologize -- oh no, we got the audio back, I think, let's listen in.

LIEBERMAN: You may have forgotten him. This is Senator John McCain of Arizona.

SEN. JOHN MCCAIN (R), ARIZONA: Thank you very much, fellow loser.

(LAUGHTER)

Thank you very much, Joe. This week marks, coincidentally, the third anniversary of the terrorist attacks of September 11th, 2001. And our actions will never erase the pain and destruction of that terrible day. We can honor those who suffered, and the best way to pay tribute to the fallen and hurt is to ensure that terrorists are never again able to attack our country.

I would point out that the commission was created by legislation that Joe Lieberman and I introduced. But the real reason why the commission became a reality was because the untiring and unstanding efforts of the families who are represented here today and will be represented in every deliberation, in everything we consider, because they are the ones to whom we owe the greatest debt.

I'd like to mention, of course, the outstanding work done by Governor Kean and Congressman Hamilton. They mentioned to me that they had already testified at 16 different hearings, and they're a long way from done. And that's ample evidence of the need to consolidate oversight in the Congress of the United States. Not only to create a commission -- I mean committees -- either joint committee, which is one option, or two permanent committees, which is the other option, which the commission recommends.

But it's clear that with their 16 different appearances, which all were appropriate, by different committees of oversight, as the way the structure is now, that if we're going to have any efficiency associated with it -- with Congressional oversight, it has to be streamlined. And it is vital that budgetary authority also be given either to a joint committee or permanent committees on intelligence.

We've worked with the commission members and its staff to draft a bill that accurately reflects the commission's recommendations. Our bill addresses each of the commission's 41 recommendations, which together designed to build unity of effort across the United States government -- all in an effort to prevent future terrorist attacks. The bill includes the fundamental restructuring of our intelligence community, recommended by the commission, and establishes a National Intelligence Director and a National Counterterrorism Center.

I'd also like to comment, the president has taken a number of steps by executive order. We applaud those steps that the president has taken. I think he has probably reached about the limits of his authority to get things done by executive order. As I mentioned, the bill cuts across jurisdictional lines with respect to Senate committee prerogatives, because of the many different aspects that the commission recommendations understandably entails.

In normal times, naysayers would caution that this fact alone could paralyze the Senate. These are not normal times. International terrorism poses an real and present danger, and it is our responsibility to take action on the commission's recommendations, regardless of committee or party or jurisdiction or turf.

I would like to mention that Congresswoman Maloney and Congressman Shays are with us today, who will be introducing companion legislation in the House. I'd also like to recognize another one of the outstanding commissioners, John Lehman.

By introducing this legislation today, we ensure that the commendable -- and I might say, remarkable -- work of the 9/11 Commission has a real opportunity to be debated and enacted. We also recognize there will be other legislative proposals, and there already are. That are recognize -- that address the nation's ability to combat terrorism, including the legislative effort on behalf of the Government Affairs Committee. I view the Government Affairs Committee clearly as the lead committee, and we will be working closely. We have great confidence in the leadership of Senator Collins and Senator Lieberman.

And despite a short and crowded legislative calendar, and the fact that this is an election year, I believe we must -- we must take legislative action and action within the Congress to reorganize our oversight responsibilities.

I want to emphasize, again, Congressman -- Governor Kean and Congressman Hamilton pointed out that Congressional oversight also was a major contributor to our failures prior to 9/11. And that has to be fixed, as well.

I'd like to ask if Senator Specter and then Senator Bayh...

PHILLIPS: Doing everything possible to prevent another 9/11. You've been listening to Senator John McCain. Also by his side, Democratic Senator Joe Lieberman. As you know, today is the day that Congress is back in session. As these two men come forward -- these Senators -- and talk about the introduction of legislation implementing 9/11 Commission recommendations.

Among those recommendation, covering subjects including intelligence reform, border and transportation security, information sharing and outreach to the Muslim world. The 9/11 Commission chair also there in the room, as these Senators unveiled the new legislation.

We'll continue to follow what they had to say throughout the day. We're going to take a quick break. more LIVE FROM right after this.

(COMMERCIAL BREAK) O'BRIEN: Secretary of State Colin Powell is sending a delegation to a conference on racism and xenophobia, an international conference. He's meeting with the secretary of the Department of Housing and Urban Development, Alphonso Jackson, who is leading that delegation. He's also taking some questions. Let's listen.

(JOINED IN PROGRESS)

COLIN POWELL, SECRETARY OF STATE: ... not one recently, but some time ago of Chechen personalities to staff members in the State Department as part of our way of keeping informed about the situation in the region. Where we are now absolutely united, though, is in condemning this horrible, horrible action that took place in this small town.

I went over to the Russian embassy earlier today to express our deepest condolences. I did it on behalf of President and Mrs. Bush and the American people, and to let the people of Russia, the people of Beslan, know that we stand with them, that terrorism of this kind has no place in the world.

To take children and to put children at risk, and to murder them in this deliberate matter has to be condemned. The civilized world condemns it and all other forms of terrorism, and we will work closely with the Russian authorities in any way that we can to deal with this matter.

We have provided, as you know, some medical assistance and some other supplies that they needed. And we look forward to results of their investigation, to see what it tells us about the perpetrators.

UNIDENTIFIED REPORTER: Mr. Secretary, foreign (ph) ministers of India and Pakistan met in (INAUDIBLE) earlier this week -- yesterday. The problem between the two countries, that India is saying that (INAUDIBLE) should not be the core issue of...

O'BRIEN: Secretary of State Colin Powell, who is sending off a delegation to a conference on racism and xenophobia, taking a question there about the situation in Beslan -- of course, which we've been telling you about, in southern Russia, the terror attack there that left in excess of 300 people dead, many of them children -- Kyra?

PHILLIPS: Well, U.S. job cuts are definitely on the rise again. Rhonda Schaffler joins us again live from the New York Stock Exchange to update us on that and tell us latest numbers -- Rhonda?

RHONDA SCHAFFLER, CNN SR. FINANCIAL CORRESPONDENT: Hi, Kyra.

Well, let's tell you about the numbers. First of all, we're see a strong rally on Wall Street. At this point, the Dow Jones Industrial Average not too, too far away from its session highs, up some 78 points. Nasdaq, too, is bouncing back sharply.

As far as that jobs report goes, a mixed report from Challenger Gray. It says, short term, some companies may be laying off workers. They do plan to hire more, though, in the weeks and months ahead. That is a quick check on Wall Street. Kyra, back to you.

PHILLIPS: Rhonda, thanks so much. See you next hour.

Also coming up in the second hour of LIVE FROM, a briefing from the Pentagon. Defense Secretary Donald Rumsfeld and General Richard Myers will address reporters just minutes from now. We're looking forward to that to see what they have to say.

LIVE FROM's hour of power begins right after this.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired September 7, 2004 - 13:35   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: In the news now, we're ready to take you -- or getting ready, rather, to take you live to a news conference at any moment by Republican Senator John McCain and Democratic Senator Joe Lieberman. This comes as Congress reconvenes. Live pictures now. It's giving itself one month to act on the 9/11 Commission recommendations. The senators will unveil legislation that they're introducing to implement the panel response to its list of recommended reform since 9/11.
Grim news from Iraq, with the combat death of another U.S. soldier. That brings the number killed to 999 since the war began. The military says a U.S. patrol was attacked in the western part of Baghdad.

Protesting terror and mourning the dead. Thousands of Russians packed the area near Red Square in Moscow. Meantime, more funerals in Beslan. More than 300 hostages, most of them children, died at that shootout at the school.

MILES O'BRIEN, CNN ANCHOR: Florida is reeling from Frances. The hurricane has hustled its way out of the state, leaving a lot of damage behind. President Bush planning another visit to Florida tomorrow. He toured the damage after Hurricane Charley came through about three weeks or so ago. Frances has claimed at least 13 lives -- 10 in Florida, one in Georgia, two in the Bahamas.

What's left of the storm is pushing through the southeast now, but the danger is not over in Florida. For example, flooded rivers won't reach their peak for another day or two.

Meanwhile, thousands of volunteers are helping on the cleanup.

(BEGIN VIDEO CLIP)

KAREN HAGAN, RED CROSS: We've had about 10,000 Red Cross volunteers and staff come into Florida. We've had to move some of the folks that were still assisting in Hurricane Charley up to help with sheltering and mass care. And we continue to send people in from the southeast and from all over the country.

(END VIDEO CLIP)

PHILLIPS: Financial losses from Frances may turn out to be less than feared. A private estimate from Risk Management Solutions puts insured losses at $3 billion to $6 billion. Well, that's much lower than the first estimate of up to $10 billion in damage. Some of the big losses are in Florida's agricultural industry, especially citrus.

For the latest now, we go live by phone to Charles Bronson. He's the state's agricultural and also consumer affairs commissioner.

Charles, great to have you again. I know there's a little bit of good news. We're going to get to that in a moment.

But let's have a reality check with regard to what people around the country depend on out of Florida. I want to talk about citrus. I want to talk about oysters, cattle and nursery. Let's start with the citrus industry.

CHARLES BRONSON, AGRICULTURE & CONSUMER SERVICES COMMISSIONER: Well, the citrus industry has taken some major hits. Across the state, as you know, Hurricane Charley got into about 35 percent of the citrus industry. This Hurricane Frances has hit the majority of the fresh fruit industry in Florida, as well as some of the juice industry, and the majority of the grapefruit industry in Florida. And those losses, especially along those coastal counties, is going to be tremendous.

PHILLIPS: So when it comes to fruits and juices, not only an impact on folks there in Florida, but around the state, it's going to be tougher for us or more expensive for us to get these items?

BRONSON: Well, for fresh fruit especially, there's going to be very little fresh fruit available out of Florida, probably this year. We have not -- I have not visually taken a look at the crop damage. I will be doing that tomorrow. We're flying down to the area to take a look, and it will be probably another week to 10 days before we get an accurate figure on the citrus losses.

PHILLIPS: All right, commissioner, what about oysters and clams?

BRONSON: Well, the oyster and clam industry have taken a major hit in Florida. Not only are some of the infrastructures that they used for clamming industry destroyed, but the amount of fresh water in both the clam and the oyster areas are going to kill those seafoods, simply because they cannot take that kind of fresh water intrusion.

PHILLIPS: All right, Charles Bronson, the commissioner of agriculture and consumer affairs, I apologize for cutting this short. We promise to follow up with you in the next 24 hours.

We want to take you now live to that news conference we told you about. Actually, it's the 9/11 Commission. Right now, you're looking at Senator Joseph Lieberman, briefing now fellow lawmakers on implementing their recommendations from the 9/11 investigation. Let's listen in.

(JOINED IN PROGRESS)

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: ... of our many different intelligence agencies. But I want to stress that this legislation goes on to enact all the other major reforms called for by the 9/11 Commission. For example, the bill would: establish a far-reaching information sharing network to promote the sharing of intelligence and homeland security information throughout the federal, state, and local governments; develop an integrated system to ensure adequate screening at the nation's entry points, internal transportation systems, and critical infrastructure; make it harder to acquire fraudulent birth certificates, drivers' licenses, and other form of identification that terrorists hide behind; improve transportation security, including strengthening the screening for explosives on airplanes; require development of a transportation security strategy that will analyze and prioritize risks to all modes of transportation, and then craft plan to protect them; increase aid to Afghanistan; strengthen the U.S. commitment to Pakistan and open new avenues of dialogue, diplomacy, and development with the Muslim world; put in place a structure to make sure that civil liberties and privacy are protected, as we necessarily increase the role of government to protect the American people from terrorism; and finally, enact Congressional reorganization to provide better oversight of intelligence and homeland security by Congress.

As you know, the Senate leadership has assigned the Governmental Affairs Committee the responsibility of considering the commission's recommendations on executive branch reorganization and reporting, a bill to the Senate by October 1st. Chairman Susan Collins and I and our committee have been is holding hearings since July and are working on a committee bill that I am confident we will mark up and report to the Senate floor before September 27th, ahead of our schedule, our deadline.

The work on both pieces of legislation -- this one and the Governmental Affairs Committee bill -- has proceeded separately, but collaboratively. Each, I believe, has strengthened and informed the other. I look forward to the committee's markup during the week of September 20th, and Senators McCain, Specter, Bayh, and I hope that the work we and our staffs have done on this bill will contribute to an expeditious process in the Government Affairs Committee.

Finally, debate on this legislation will take place, as we all know, in the middle of a presidential and Congressional election campaign. And there are going to be differences of opinion about these proposals, because the 9/11 commission has recommended and this bill would enact bold and comprehensive reform that changes the status quo, because the status quo in intelligence and diplomacy has failed us.

But we are confident standing shoulder to shoulder across party lines today that the differences that come up in the debate on this legislation will not be partisan. The members of Congress will meet the standards set by the commission of rising above party loyalty to put the nation's security first. And that we will pass strong legislation soon that will enable us to say to the American people -- especially those who lost loved ones on September 11th -- that we have done everything possible to prevent another terrorist attack like September 11th from happening again. Now...

PHILLIPS: All right, we apologize -- oh no, we got the audio back, I think, let's listen in.

LIEBERMAN: You may have forgotten him. This is Senator John McCain of Arizona.

SEN. JOHN MCCAIN (R), ARIZONA: Thank you very much, fellow loser.

(LAUGHTER)

Thank you very much, Joe. This week marks, coincidentally, the third anniversary of the terrorist attacks of September 11th, 2001. And our actions will never erase the pain and destruction of that terrible day. We can honor those who suffered, and the best way to pay tribute to the fallen and hurt is to ensure that terrorists are never again able to attack our country.

I would point out that the commission was created by legislation that Joe Lieberman and I introduced. But the real reason why the commission became a reality was because the untiring and unstanding efforts of the families who are represented here today and will be represented in every deliberation, in everything we consider, because they are the ones to whom we owe the greatest debt.

I'd like to mention, of course, the outstanding work done by Governor Kean and Congressman Hamilton. They mentioned to me that they had already testified at 16 different hearings, and they're a long way from done. And that's ample evidence of the need to consolidate oversight in the Congress of the United States. Not only to create a commission -- I mean committees -- either joint committee, which is one option, or two permanent committees, which is the other option, which the commission recommends.

But it's clear that with their 16 different appearances, which all were appropriate, by different committees of oversight, as the way the structure is now, that if we're going to have any efficiency associated with it -- with Congressional oversight, it has to be streamlined. And it is vital that budgetary authority also be given either to a joint committee or permanent committees on intelligence.

We've worked with the commission members and its staff to draft a bill that accurately reflects the commission's recommendations. Our bill addresses each of the commission's 41 recommendations, which together designed to build unity of effort across the United States government -- all in an effort to prevent future terrorist attacks. The bill includes the fundamental restructuring of our intelligence community, recommended by the commission, and establishes a National Intelligence Director and a National Counterterrorism Center.

I'd also like to comment, the president has taken a number of steps by executive order. We applaud those steps that the president has taken. I think he has probably reached about the limits of his authority to get things done by executive order. As I mentioned, the bill cuts across jurisdictional lines with respect to Senate committee prerogatives, because of the many different aspects that the commission recommendations understandably entails.

In normal times, naysayers would caution that this fact alone could paralyze the Senate. These are not normal times. International terrorism poses an real and present danger, and it is our responsibility to take action on the commission's recommendations, regardless of committee or party or jurisdiction or turf.

I would like to mention that Congresswoman Maloney and Congressman Shays are with us today, who will be introducing companion legislation in the House. I'd also like to recognize another one of the outstanding commissioners, John Lehman.

By introducing this legislation today, we ensure that the commendable -- and I might say, remarkable -- work of the 9/11 Commission has a real opportunity to be debated and enacted. We also recognize there will be other legislative proposals, and there already are. That are recognize -- that address the nation's ability to combat terrorism, including the legislative effort on behalf of the Government Affairs Committee. I view the Government Affairs Committee clearly as the lead committee, and we will be working closely. We have great confidence in the leadership of Senator Collins and Senator Lieberman.

And despite a short and crowded legislative calendar, and the fact that this is an election year, I believe we must -- we must take legislative action and action within the Congress to reorganize our oversight responsibilities.

I want to emphasize, again, Congressman -- Governor Kean and Congressman Hamilton pointed out that Congressional oversight also was a major contributor to our failures prior to 9/11. And that has to be fixed, as well.

I'd like to ask if Senator Specter and then Senator Bayh...

PHILLIPS: Doing everything possible to prevent another 9/11. You've been listening to Senator John McCain. Also by his side, Democratic Senator Joe Lieberman. As you know, today is the day that Congress is back in session. As these two men come forward -- these Senators -- and talk about the introduction of legislation implementing 9/11 Commission recommendations.

Among those recommendation, covering subjects including intelligence reform, border and transportation security, information sharing and outreach to the Muslim world. The 9/11 Commission chair also there in the room, as these Senators unveiled the new legislation.

We'll continue to follow what they had to say throughout the day. We're going to take a quick break. more LIVE FROM right after this.

(COMMERCIAL BREAK) O'BRIEN: Secretary of State Colin Powell is sending a delegation to a conference on racism and xenophobia, an international conference. He's meeting with the secretary of the Department of Housing and Urban Development, Alphonso Jackson, who is leading that delegation. He's also taking some questions. Let's listen.

(JOINED IN PROGRESS)

COLIN POWELL, SECRETARY OF STATE: ... not one recently, but some time ago of Chechen personalities to staff members in the State Department as part of our way of keeping informed about the situation in the region. Where we are now absolutely united, though, is in condemning this horrible, horrible action that took place in this small town.

I went over to the Russian embassy earlier today to express our deepest condolences. I did it on behalf of President and Mrs. Bush and the American people, and to let the people of Russia, the people of Beslan, know that we stand with them, that terrorism of this kind has no place in the world.

To take children and to put children at risk, and to murder them in this deliberate matter has to be condemned. The civilized world condemns it and all other forms of terrorism, and we will work closely with the Russian authorities in any way that we can to deal with this matter.

We have provided, as you know, some medical assistance and some other supplies that they needed. And we look forward to results of their investigation, to see what it tells us about the perpetrators.

UNIDENTIFIED REPORTER: Mr. Secretary, foreign (ph) ministers of India and Pakistan met in (INAUDIBLE) earlier this week -- yesterday. The problem between the two countries, that India is saying that (INAUDIBLE) should not be the core issue of...

O'BRIEN: Secretary of State Colin Powell, who is sending off a delegation to a conference on racism and xenophobia, taking a question there about the situation in Beslan -- of course, which we've been telling you about, in southern Russia, the terror attack there that left in excess of 300 people dead, many of them children -- Kyra?

PHILLIPS: Well, U.S. job cuts are definitely on the rise again. Rhonda Schaffler joins us again live from the New York Stock Exchange to update us on that and tell us latest numbers -- Rhonda?

RHONDA SCHAFFLER, CNN SR. FINANCIAL CORRESPONDENT: Hi, Kyra.

Well, let's tell you about the numbers. First of all, we're see a strong rally on Wall Street. At this point, the Dow Jones Industrial Average not too, too far away from its session highs, up some 78 points. Nasdaq, too, is bouncing back sharply.

As far as that jobs report goes, a mixed report from Challenger Gray. It says, short term, some companies may be laying off workers. They do plan to hire more, though, in the weeks and months ahead. That is a quick check on Wall Street. Kyra, back to you.

PHILLIPS: Rhonda, thanks so much. See you next hour.

Also coming up in the second hour of LIVE FROM, a briefing from the Pentagon. Defense Secretary Donald Rumsfeld and General Richard Myers will address reporters just minutes from now. We're looking forward to that to see what they have to say.

LIVE FROM's hour of power begins right after this.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com