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Allawi Gives Falluja an Ultimatum; Hostage Rescue Attempts Failed, Source Says; Bush, Kerry Prepare for Final Debate

Aired October 13, 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.


WOLF BLITZER, HOST, "WOLF BLITZER REPORTS: Every weekday at 5 p.m. Eastern for WOLF BLITZER REPORTS. Among my guests later, Rob Reiner and Ron Silver. Until then, thank you very much for joining us. I'm Wolf Blitzer at Arizona State University.
LIVE FROM, with Kyra Phillips and Miles O'Brien, is next.

MILES O'BRIEN, CO-HOST: Insurgents attack. U.S. troops and Iraqi police targeted. We're live from Baghdad with the latest.

KYRA PHILLIPS, CO-HOST: Hostage rescue attempts. Details emerge about U.S. efforts to free two Americans and a British hostage before they were killed in Iraq.

O'BRIEN: The Tempest in Tempe. The contenders get ready for round three. What do they have to do to win over voters?

PHILLIPS: Rescue at sea. A man goes overboard and waits for hours until a good Samaritan swoops in. We'll tell you what happened and take you on the inside.

From the CNN center in Atlanta, I'm Kyra Phillips.

O'BRIEN: And I'm Miles O'Brien. CNN's LIVE FROM starts right now.

PHILLIPS: Up first this hour, carrots and sticks, war and peace, and everything in between in Iraq. A tribal leader in turbulent Fallujah says peace talks there are slow, but on the right track despite near daily U.S. air strikes.

But Iraq's prime minister warns a lot more force is forthcoming unless Fallujans turn over terror kingpin Abu Musab al-Zarqawi, who group today claimed two more executions, this time of purported Iraqi intelligence officers.

CNN's Brent Sadler brings us all the latest developments now from Baghdad -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Thanks. Yesterday, the group of Abu Musab al-Zarqawi, the most wanted terror suspect in Iraq, claiming on the Islamic web site they've used before to have beheaded two, what they say, intelligence officers, picked up in Haifa Street, a rebel stronghold, during recent clashes.

In other developments, two U.S. soldiers killed when a suicide car bomber drove his explosives-laden vehicle into a convoy of Humvees outside this city of Mosul in northern Iraq.

Now let's get down to what's happening in Fallujah. Iraq's interim prime minister, Ayad Allawi, telling his national council members here in the capital just a few hours ago that unless insurgent groups not directly linked with Zarqawi and city elders and shaikhs and tribal leaders, unless they break away from Zarqawi completely, hand him over, and his supporters, to the authorities, Fallujans can expect to face a military onslaught.

This is what Mr. Allawi said.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER (through translator): If they don't hand us Zarqawi and his people in Fallujah, we will also conduct operations in Fallujah. We will spare no effort to protect the Iraqi people.

(END VIDEO CLIP)

SADLER: That ultimatum follows weeks of sustained U.S. air strikes against Zarqawi's terror network operations in Fallujah, which is about 30 miles west of Baghdad.

So a clear warning now from Mr. Allawi of more military action to come if Zarqawi and his followers remain active in Fallujah, continuing to carry out beheadings like we've seen today, more assassinations and the deadly car bombings, which still continue here -- Kyra.

PHILLIPS: Brent, meanwhile, building the case against Saddam Hussein. What can you tell us about these killing fields discovered in Hatra, Iraq?

SADLER: Yes, this is on the eastern edge of Iraq's western desert. Now this is a rather special site, because this one is in pristine condition. Forensic experts have been working on this site for quite some time.

This is the first time we journalists have gone anywhere near this place. And it really is a crime scene. They're treating it for forensic evidence that can eventually link Saddam Hussein himself and his top lieutenants to war crimes and crimes against humanity and so forth.

So this is a very important continuing investigation there. Who is in those sites -- in those sites there? Two sites exposed, may be seven in the area as a whole. Two or 300 bodies in the two exposed graves, mostly, it's thought, of Kurds, killed more than 25 years ago by the regime here, many of them in one grave.

Have many distressing images of women and children, women blindfold, shot in the head with small caliber pistol, children also killed in the same way, pushed in the ditch, some of the children holding toys -- Kyra.

PHILLIPS: Pretty chilling. Brent Sadler, LIVE FROM Iraq, thank you -- Miles.

O'BRIEN: Back now to latest executions. Zarqawi's unification and Jihad group has put out another grisly video, this time of two men who supposedly were Iraqi intelligence officers who collaborated with the U.S. military. Another group is claiming it beheaded a Kurd for the same reason.

We're also learning more today about some ill-fated attempts to rescue two Americans and a Brit who were kidnapped in Baghdad a month ago.

CNN's Barbara Starr has that from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): The first rescue attempt came when Americans Eugene Armstrong and Jack Hensley and British hostage Ken Bigley were still alive after being kidnapped September 16 from their Baghdad home.

The second attempt, a source with direct knowledge said, came after Armstrong was beheaded around September 20.

The official told CNN a lot of people had a lot of sleepless nights trying to find them. Bigley was killed last week after attempting to escape after some three weeks in brutal activity.

An official confirms the attempts to rescue the hostages from the Abu Musab al Zarqawi network involved the deployment of U.S. military, as well as other government personnel.

The U.S. rescue teams on two separate occasions went to locations in Baghdad, based on intelligence that indicated that the hostages were being held there.

(on camera) But they came up with what the source calls dry holes. There was evidence at both locations that people had been there at some point. But by the time the rescue teams arrived, the locations were empty. No one knows if the hostages were moved or they were never there at all.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

O'BRIEN: Well, tonight's the night. Tempe is the town, and if tempers run high it will probably have something to do with deficits or unemployment or Senate votes or that dreaded "L" word.

All fair game, as George W. Bush and John Kerry go eyeball to eyeball for the third and last time before Americans go to the polls.

Speaking of polls, Americans quizzed after the second Bush-Kerry debate predicted Kerry would shine in the third, in part, no doubt, because of well received showings in the first two rounds. But also because domestic issues, the focus tonight, are perceived to be Kerry's strong suit.

We know already that Kerry won the coin toss and elected to take the first question from moderator Bob Schieffer. And we know CNN's Dana Bash is with the Bush camp in Scottsdale, Arizona. Ed Henry is in Santa Fe New Mexico, where Kerry spent a few extra hours watching his Red Sox, sadly, lose to the Yankee.

Dana, ladies first.

DANA BASH, CNN CORRESPONDENT: Hi, Miles.

Well, the president at this hour is actually taking a tour of the debate site, checking out the facilities, checking out where he is going to spend 90 minutes, once again, and finally, with his opponent John Kerry.

Last night, the president did something he doesn't do very often. He actually went out to dinner, out to a restaurant. And he was taken there by the home state senator, his former rival, Senator John McCain, and his wife. And it is sort of all part of the pre-debate confidence game, trying to show that president Bush, like John Kerry, as you mentioned was, that he is confident about tonight.

And essentially what Bush aides say, his strategy for this evening is -- is quite simple, which is to paint John Kerry as somebody who has a different philosophy from him, somebody who is a big government, big-spending liberal, and that he has the record to prove it.

And it's something that President Bush previewed here in Arizona yesterday.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: You're not going to have fiscal sanity with John Kerry as the president. He's been the most liberal member of the United States Senate, which means he likes to spend your money. That's what that means. He can try to run from his record, but I'm not going to let him hide.

(END VIDEO CLIP)

BASH: As you mentioned, Miles, tonight's debate is, of course, on domestic issues. And as you also mentioned, there is a perception that that is John Kerry's turf, but there are some numbers to back that up.

Look at some of the numbers from the latest CNN/"USA Today"/Gallup poll. On health care, on the deficit, on Medicare, the president trails John Kerry by 19 percent, 13 percent, 15 percentage points.

So the Bush campaign knows that they have an uphill battle ahead of them tonight. But they also make the point that the president did try to offer some new initiatives on things like health care, a health savings account, during his convention. But some of the domestic issues, most of the domestic issues, have been overshadowed by the war in Iraq, by the war on terrorism, and that they see tonight as a benefit to try to highlight some of the things that he says he will do in the next term -- Miles.

O'BRIEN: CNN's Dana Bash, thank you very much -- Kyra.

PHILLIPS: Well, the Kerry camp says the Democrats' surge in post-debate polling is evidence that evidence matters, not just rhetoric or spin. Here's CNN's Ed Henry now in Santa Fe.

Hi, Ed.

ED HENRY, CNN CORRESPONDENT: Good afternoon, Kyra.

That's right. John Kerry did wake up here in Santa Fe before making his way on to Arizona. And not surprisingly, the Kerry camp is expressing confidence, optimism. They believe they won the first two debates. They think they can go three for three tonight, since it will be focused on the domestic agenda.

And in fact, on the eve of what could be the biggest moment in his political life, what did Kerry do? He went out exercising last night, went for a little bike ride, then he watched the Yankees/Red Sox game. All of this, bikes, baseball, an attempt to show that John Kerry is very loose, very calm, heading into this debate.

Kerry aides say that we've seen Bush on the attack all this week, while John Kerry has been behind closed doors, preparing for the debate. They say that's because the president is on the defensive after the first two debates.

There have been questions, though, about why John Kerry has not been more forceful himself, coming out this week and directly responding to those attacks.

The Kerry camp says they're perfectly comfortable with John Kerry just taking the gloves off tonight, doing it directly in the debate, rather than a back and forth all this week. They think it was good that he was focused on the debate prep, focused on relaxing a little bit, watching baseball, not focusing on attacks back and forth.

And in fact, what the Kerry camp is saying is that we're getting a little preview today on what they may do on the domestic agenda tonight. All this week, the president has been talking a little bit about health care, for example, saying that John Kerry's health plan is a big government program, wants to bring it back to the so-called Hillary Clinton care of the '90s that the Democrats tried to push through.

The Kerry camp says that's a complete distortion, a fabrication. They've come out with a hard-hitting ad of their own today, saying just that.

The Kerry camp says you will see more on that, on taxes, the economy tonight. They say John Kerry is going to do what Al Gore did not do in 2000, offer a very clear choice on all of these domestic issues, right up against what George W. Bush is offering and what he has done over the last four years -- Kyra.

PHILLIPS: Ed Henry, thank you so much.

And be sure to tune in to CNN tonight for the showdown in Tempe. Our live coverage begins at 7 Eastern, with the debate starting at 9.

O'BRIEN: Well, call her spokeswoman, spinner or dedicated spouse, Laura Bush pressed the president's agenda last night in a visit to "LARRY KING LIVE." The first lady also defended Bush's refusal to answer that three mistakes question from the town hall forum last Friday.

(BEGIN VIDEO CLIP)

LAURA BUSH, FIRST LADY: He said -- of course he'd made mistakes. That's what he said. He said, "I'm human and I've made a lot of mistakes, and there's no doubt about it. And history will judge what they are."

LARRY KING, HOST, "LARRY KING LIVE": But he wouldn't name them.

L. BUSH: Well, I think -- you know, that's a trick question, really, for the politician. Because then it's -- you know, once you name the mistakes, then those -- then the other side, or the person who asks, for that matter, uses those against you for the rest of the time.

I mean, he said that he is willing to accept the responsibility of the job he has, which is, you know, all the mistakes are assigned to him.

(END VIDEOTAPE)

O'BRIEN: As for all the nasty things the candidates and their surrogates have said and will say about each other, Mrs. Bush says it's just a fact of life in politics.

Well, after spending agonizing hours lost at sea, a man overboard finds an unlikely hero coming to the rescue. We'll have his story a little bit later on LIVE FROM.

You know the old joke: vote early, vote often. But have early voters already made a serious impact on the outcome of the presidential race?

And seeing the world through the eyes of Elton John. An upcoming auction gives fans a window into the pop star's soul. We'll give you a glimpse, if you stay tuned.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK) PHILLIPS: An incredible story of survival at sea for you now. A crewman from a cargo ship is lucky to be alive following his rescue off Miami today.

Gurjit Singh of India spent more than 12 hours floating in the Atlantic after falling overboard. A rescuer found the man conscious and floating six miles off the coast, then alerted authorities.

We're going to get the details now from Coast Guard spokeswoman Sandy Bartlett. She's live on the phone from Florida.

Petty Officer Bartlett, can you tell us how this all went down?

PETTY OFFICER SANDY BARTLETT, COAST GUARD: Yes, I can, actually. We received a report from the motor vessel Tatiana L, which is a Cyprus-flagged vessel about 480 feet in length.

It was about 10 p.m. last night when they called us, notifying us that there was a crewmember missing. They discovered he was missing as the ship was making its way out of Port Everglades, Florida. They did a muster on the ship and that was the last time he was seen.

A few more miles out, the captain ordered a second muster of the vessel. And that's when the rest of the crew noticed he wasn't there. So the crew of Tatiana L immediately notified the Coast Guard of the situation.

From there, we launched a small boat from Station Ft. Lauderdale, as well as a helicopter and the Coast Guard cutter Dolphin out of Miami. We also worked alongside Florida Fish and Wildlife Conservation Commission, the Broward Sheriff's Office, and the Hollywood Police Department, conducting search efforts for -- for Mr. Gurjit Singh.

PHILLIPS: Well, you know, I've talked to Coast Guard pilots and those in the search and rescue. It's pretty exhilarating when you're able to save someone's life like this.

What was the reaction from the pilots and those on the smaller ships, once they saw that he was alive and they were able to get him out? How did they extract him from the water?

BARTLETT: Well, actually he was picked up by a good Samaritan who had heard our marine information broadcast which was soliciting the help of any local mariners in the area. Luckily, he arrived on scene.

Mr. Singh was actually picked up about five miles east of Hillsborough in West Florida, which is just north of Port Everglades, which was right around the area where -- where we were searching at the time.

But of course, once we received notification he was picked up and he was conscious, you know, of course the Coast Guard does express a big sigh of relief, especially when we heard notification that he was wearing a life jacket, which is definitely a major ingredient to what -- what helped him stay alive at sea, especially for such a long duration of time.

PHILLIPS: Well, how about that good Samaritan? Is it a he or a she and will that individual be properly rewarded in anyway?

BARTLETT: I don't have any information on that right now.

PHILLIPS: What about the condition of Gurjit Singh? How was he?

BARTLETT: Well, at the time of the transfer, he was alert. He was very tired, which is expected, but he was alert, and he was alive. And he was transferred to EMS.

As far as the motor vessel Big Red, we do definitely applaud his diligence and his ability to pull him out of the water and safely conduct a rescue, you know, before we could.

PHILLIPS: Petty Officer Sandy Bartlett with the U.S. Coast Guard, thank you.

BARTLETT: Thank you.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next, on LIVE FROM, mixing terror and tunes. Prince's new video casts an Oscar nominated actress as an Arab-American suicide bomber. Is he going too far?

Later on LIVE FROM, paying for protection, price gouging for flu shots. What you need to know to survive the shot shortage.

And tomorrow, who wins round three? The impact of the final presidential debate on the election.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: Twenty days and one debate to go before the election. And already, thousands of Americans have made their pick for president. In 31 states, people can vote absentee for any reason. And this year, it's expected to be huge, especially in the battleground state of Iowa.

CNN's Keith Oppenheim takes a look at the impact it could have on the tight race for the White House.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): Wilma Davis is on a mission.

WILMA DAVIS, KERRY SUPPORTER: I definitely want to see Kerry elected. And I'll do whatever I can to help.

OPPENHEIM: She's a courier, trained by the state, working for the Democratic Party, volunteering to pick up absentee ballots. DAVIS: Hi!

OPPENHEIM: Etta Mae Wilson hands over two ballots. She's 87. Her husband Don is 88. Both are voting for John Kerry. Because of health concerns, they're voting from home, something they've never done before.

OPPENHEIM (on camera): Did you feel pretty good about what you did with early voting?

DON WILSON, KERRY SUPPORTER: Yes, I do.

OPPENHEIM: Because why?

WILSON: It's done, and if for some reason we couldn't get to the poll, why, we do have our vote in.

UNIDENTIFIED MALE: Voting on both sides of the ballot...

OPPENHEIM (voice-over): Four years ago, 20 percent of Iowa's ballots were cast early. In fact, while George W. Bush won the election day vote, Al Gore won the absentee vote by enough of a margin to take the state by a nose.

This time around, it's expected close to a third of Iowa's ballots could come in early. People can do it by mail or just pop into an election office.

Tom Cox and his wife Jane came in to cast votes for George W. Bush.

(on camera) Do you have any sense as to whether or not early voting has much of an impact on how people vote in Iowa in general? Do you think it makes a difference?

TOM COX, VOTER: A lot more than they used to.

OPPENHEIM: What's the difference?

COX: More people are voting.

OPPENHEIM (voice-over): The truth is, no one's quite sure yet if early voting means more voting.

UNIDENTIFIED FEMALE: Victory 2004.

OPPENHEIM: But Democrats here are banking on it, believing if they can encourage the party faithful to vote early, they can then devote more energy to the undecideds.

UNIDENTIFIED MALE: I was wondering if we can count on your support.

OPPENHEIM: Republicans are counting on loyalty, that more of their supporters will show up on election day than Democrats.

Iowans seem to like all these voting options, but some here believe there's a down side.

PROF. DENNIS GOLDFORD, DRAKE UNIVERSITY: If they vote early, they've walked out of the football game in the middle of the third quarter, and there's still a quarter and a half to go, and the whole tenor of the game may change.

OPPENHEIM: In a sense, early voting has already changed the game in Iowa. The question is, has early voting expanded the number of people taking part in democracy? Or has it just shifted the timing of the voters and the tactics of the parties?

UNIDENTIFIED MALE: Thank you very much.

OPPENHEIM: Keith Oppenheim, CNN, Des Moines.

(END VIDEOTAPE)

PHILLIPS: A New York newspaper says it may be the most tasteless music video ever. It's the new one from Prince, called "Cinnamon Girl."

The story involves an Arab-American teen, troubled by racism, who imagines she's blowing herself up in an airport. The girl is played by Keisha-Castle Hughes who starred, as you remember, in "Whale Rider." No comment from Prince.

The video's director says none of it is literal, but you get the picture.

Microsoft is warning of new security flaws in its software. Rhonda Schaffler joins us now live from the New York Stock Exchange with the details on that.

Hi, Rhonda.

(STOCK REPORT)

(COMMERCIAL BREAK)

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Aired October 13, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST, "WOLF BLITZER REPORTS: Every weekday at 5 p.m. Eastern for WOLF BLITZER REPORTS. Among my guests later, Rob Reiner and Ron Silver. Until then, thank you very much for joining us. I'm Wolf Blitzer at Arizona State University.
LIVE FROM, with Kyra Phillips and Miles O'Brien, is next.

MILES O'BRIEN, CO-HOST: Insurgents attack. U.S. troops and Iraqi police targeted. We're live from Baghdad with the latest.

KYRA PHILLIPS, CO-HOST: Hostage rescue attempts. Details emerge about U.S. efforts to free two Americans and a British hostage before they were killed in Iraq.

O'BRIEN: The Tempest in Tempe. The contenders get ready for round three. What do they have to do to win over voters?

PHILLIPS: Rescue at sea. A man goes overboard and waits for hours until a good Samaritan swoops in. We'll tell you what happened and take you on the inside.

From the CNN center in Atlanta, I'm Kyra Phillips.

O'BRIEN: And I'm Miles O'Brien. CNN's LIVE FROM starts right now.

PHILLIPS: Up first this hour, carrots and sticks, war and peace, and everything in between in Iraq. A tribal leader in turbulent Fallujah says peace talks there are slow, but on the right track despite near daily U.S. air strikes.

But Iraq's prime minister warns a lot more force is forthcoming unless Fallujans turn over terror kingpin Abu Musab al-Zarqawi, who group today claimed two more executions, this time of purported Iraqi intelligence officers.

CNN's Brent Sadler brings us all the latest developments now from Baghdad -- Brent.

BRENT SADLER, CNN CORRESPONDENT: Thanks. Yesterday, the group of Abu Musab al-Zarqawi, the most wanted terror suspect in Iraq, claiming on the Islamic web site they've used before to have beheaded two, what they say, intelligence officers, picked up in Haifa Street, a rebel stronghold, during recent clashes.

In other developments, two U.S. soldiers killed when a suicide car bomber drove his explosives-laden vehicle into a convoy of Humvees outside this city of Mosul in northern Iraq.

Now let's get down to what's happening in Fallujah. Iraq's interim prime minister, Ayad Allawi, telling his national council members here in the capital just a few hours ago that unless insurgent groups not directly linked with Zarqawi and city elders and shaikhs and tribal leaders, unless they break away from Zarqawi completely, hand him over, and his supporters, to the authorities, Fallujans can expect to face a military onslaught.

This is what Mr. Allawi said.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, INTERIM IRAQI PRIME MINISTER (through translator): If they don't hand us Zarqawi and his people in Fallujah, we will also conduct operations in Fallujah. We will spare no effort to protect the Iraqi people.

(END VIDEO CLIP)

SADLER: That ultimatum follows weeks of sustained U.S. air strikes against Zarqawi's terror network operations in Fallujah, which is about 30 miles west of Baghdad.

So a clear warning now from Mr. Allawi of more military action to come if Zarqawi and his followers remain active in Fallujah, continuing to carry out beheadings like we've seen today, more assassinations and the deadly car bombings, which still continue here -- Kyra.

PHILLIPS: Brent, meanwhile, building the case against Saddam Hussein. What can you tell us about these killing fields discovered in Hatra, Iraq?

SADLER: Yes, this is on the eastern edge of Iraq's western desert. Now this is a rather special site, because this one is in pristine condition. Forensic experts have been working on this site for quite some time.

This is the first time we journalists have gone anywhere near this place. And it really is a crime scene. They're treating it for forensic evidence that can eventually link Saddam Hussein himself and his top lieutenants to war crimes and crimes against humanity and so forth.

So this is a very important continuing investigation there. Who is in those sites -- in those sites there? Two sites exposed, may be seven in the area as a whole. Two or 300 bodies in the two exposed graves, mostly, it's thought, of Kurds, killed more than 25 years ago by the regime here, many of them in one grave.

Have many distressing images of women and children, women blindfold, shot in the head with small caliber pistol, children also killed in the same way, pushed in the ditch, some of the children holding toys -- Kyra.

PHILLIPS: Pretty chilling. Brent Sadler, LIVE FROM Iraq, thank you -- Miles.

O'BRIEN: Back now to latest executions. Zarqawi's unification and Jihad group has put out another grisly video, this time of two men who supposedly were Iraqi intelligence officers who collaborated with the U.S. military. Another group is claiming it beheaded a Kurd for the same reason.

We're also learning more today about some ill-fated attempts to rescue two Americans and a Brit who were kidnapped in Baghdad a month ago.

CNN's Barbara Starr has that from the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): The first rescue attempt came when Americans Eugene Armstrong and Jack Hensley and British hostage Ken Bigley were still alive after being kidnapped September 16 from their Baghdad home.

The second attempt, a source with direct knowledge said, came after Armstrong was beheaded around September 20.

The official told CNN a lot of people had a lot of sleepless nights trying to find them. Bigley was killed last week after attempting to escape after some three weeks in brutal activity.

An official confirms the attempts to rescue the hostages from the Abu Musab al Zarqawi network involved the deployment of U.S. military, as well as other government personnel.

The U.S. rescue teams on two separate occasions went to locations in Baghdad, based on intelligence that indicated that the hostages were being held there.

(on camera) But they came up with what the source calls dry holes. There was evidence at both locations that people had been there at some point. But by the time the rescue teams arrived, the locations were empty. No one knows if the hostages were moved or they were never there at all.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

O'BRIEN: Well, tonight's the night. Tempe is the town, and if tempers run high it will probably have something to do with deficits or unemployment or Senate votes or that dreaded "L" word.

All fair game, as George W. Bush and John Kerry go eyeball to eyeball for the third and last time before Americans go to the polls.

Speaking of polls, Americans quizzed after the second Bush-Kerry debate predicted Kerry would shine in the third, in part, no doubt, because of well received showings in the first two rounds. But also because domestic issues, the focus tonight, are perceived to be Kerry's strong suit.

We know already that Kerry won the coin toss and elected to take the first question from moderator Bob Schieffer. And we know CNN's Dana Bash is with the Bush camp in Scottsdale, Arizona. Ed Henry is in Santa Fe New Mexico, where Kerry spent a few extra hours watching his Red Sox, sadly, lose to the Yankee.

Dana, ladies first.

DANA BASH, CNN CORRESPONDENT: Hi, Miles.

Well, the president at this hour is actually taking a tour of the debate site, checking out the facilities, checking out where he is going to spend 90 minutes, once again, and finally, with his opponent John Kerry.

Last night, the president did something he doesn't do very often. He actually went out to dinner, out to a restaurant. And he was taken there by the home state senator, his former rival, Senator John McCain, and his wife. And it is sort of all part of the pre-debate confidence game, trying to show that president Bush, like John Kerry, as you mentioned was, that he is confident about tonight.

And essentially what Bush aides say, his strategy for this evening is -- is quite simple, which is to paint John Kerry as somebody who has a different philosophy from him, somebody who is a big government, big-spending liberal, and that he has the record to prove it.

And it's something that President Bush previewed here in Arizona yesterday.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: You're not going to have fiscal sanity with John Kerry as the president. He's been the most liberal member of the United States Senate, which means he likes to spend your money. That's what that means. He can try to run from his record, but I'm not going to let him hide.

(END VIDEO CLIP)

BASH: As you mentioned, Miles, tonight's debate is, of course, on domestic issues. And as you also mentioned, there is a perception that that is John Kerry's turf, but there are some numbers to back that up.

Look at some of the numbers from the latest CNN/"USA Today"/Gallup poll. On health care, on the deficit, on Medicare, the president trails John Kerry by 19 percent, 13 percent, 15 percentage points.

So the Bush campaign knows that they have an uphill battle ahead of them tonight. But they also make the point that the president did try to offer some new initiatives on things like health care, a health savings account, during his convention. But some of the domestic issues, most of the domestic issues, have been overshadowed by the war in Iraq, by the war on terrorism, and that they see tonight as a benefit to try to highlight some of the things that he says he will do in the next term -- Miles.

O'BRIEN: CNN's Dana Bash, thank you very much -- Kyra.

PHILLIPS: Well, the Kerry camp says the Democrats' surge in post-debate polling is evidence that evidence matters, not just rhetoric or spin. Here's CNN's Ed Henry now in Santa Fe.

Hi, Ed.

ED HENRY, CNN CORRESPONDENT: Good afternoon, Kyra.

That's right. John Kerry did wake up here in Santa Fe before making his way on to Arizona. And not surprisingly, the Kerry camp is expressing confidence, optimism. They believe they won the first two debates. They think they can go three for three tonight, since it will be focused on the domestic agenda.

And in fact, on the eve of what could be the biggest moment in his political life, what did Kerry do? He went out exercising last night, went for a little bike ride, then he watched the Yankees/Red Sox game. All of this, bikes, baseball, an attempt to show that John Kerry is very loose, very calm, heading into this debate.

Kerry aides say that we've seen Bush on the attack all this week, while John Kerry has been behind closed doors, preparing for the debate. They say that's because the president is on the defensive after the first two debates.

There have been questions, though, about why John Kerry has not been more forceful himself, coming out this week and directly responding to those attacks.

The Kerry camp says they're perfectly comfortable with John Kerry just taking the gloves off tonight, doing it directly in the debate, rather than a back and forth all this week. They think it was good that he was focused on the debate prep, focused on relaxing a little bit, watching baseball, not focusing on attacks back and forth.

And in fact, what the Kerry camp is saying is that we're getting a little preview today on what they may do on the domestic agenda tonight. All this week, the president has been talking a little bit about health care, for example, saying that John Kerry's health plan is a big government program, wants to bring it back to the so-called Hillary Clinton care of the '90s that the Democrats tried to push through.

The Kerry camp says that's a complete distortion, a fabrication. They've come out with a hard-hitting ad of their own today, saying just that.

The Kerry camp says you will see more on that, on taxes, the economy tonight. They say John Kerry is going to do what Al Gore did not do in 2000, offer a very clear choice on all of these domestic issues, right up against what George W. Bush is offering and what he has done over the last four years -- Kyra.

PHILLIPS: Ed Henry, thank you so much.

And be sure to tune in to CNN tonight for the showdown in Tempe. Our live coverage begins at 7 Eastern, with the debate starting at 9.

O'BRIEN: Well, call her spokeswoman, spinner or dedicated spouse, Laura Bush pressed the president's agenda last night in a visit to "LARRY KING LIVE." The first lady also defended Bush's refusal to answer that three mistakes question from the town hall forum last Friday.

(BEGIN VIDEO CLIP)

LAURA BUSH, FIRST LADY: He said -- of course he'd made mistakes. That's what he said. He said, "I'm human and I've made a lot of mistakes, and there's no doubt about it. And history will judge what they are."

LARRY KING, HOST, "LARRY KING LIVE": But he wouldn't name them.

L. BUSH: Well, I think -- you know, that's a trick question, really, for the politician. Because then it's -- you know, once you name the mistakes, then those -- then the other side, or the person who asks, for that matter, uses those against you for the rest of the time.

I mean, he said that he is willing to accept the responsibility of the job he has, which is, you know, all the mistakes are assigned to him.

(END VIDEOTAPE)

O'BRIEN: As for all the nasty things the candidates and their surrogates have said and will say about each other, Mrs. Bush says it's just a fact of life in politics.

Well, after spending agonizing hours lost at sea, a man overboard finds an unlikely hero coming to the rescue. We'll have his story a little bit later on LIVE FROM.

You know the old joke: vote early, vote often. But have early voters already made a serious impact on the outcome of the presidential race?

And seeing the world through the eyes of Elton John. An upcoming auction gives fans a window into the pop star's soul. We'll give you a glimpse, if you stay tuned.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK) PHILLIPS: An incredible story of survival at sea for you now. A crewman from a cargo ship is lucky to be alive following his rescue off Miami today.

Gurjit Singh of India spent more than 12 hours floating in the Atlantic after falling overboard. A rescuer found the man conscious and floating six miles off the coast, then alerted authorities.

We're going to get the details now from Coast Guard spokeswoman Sandy Bartlett. She's live on the phone from Florida.

Petty Officer Bartlett, can you tell us how this all went down?

PETTY OFFICER SANDY BARTLETT, COAST GUARD: Yes, I can, actually. We received a report from the motor vessel Tatiana L, which is a Cyprus-flagged vessel about 480 feet in length.

It was about 10 p.m. last night when they called us, notifying us that there was a crewmember missing. They discovered he was missing as the ship was making its way out of Port Everglades, Florida. They did a muster on the ship and that was the last time he was seen.

A few more miles out, the captain ordered a second muster of the vessel. And that's when the rest of the crew noticed he wasn't there. So the crew of Tatiana L immediately notified the Coast Guard of the situation.

From there, we launched a small boat from Station Ft. Lauderdale, as well as a helicopter and the Coast Guard cutter Dolphin out of Miami. We also worked alongside Florida Fish and Wildlife Conservation Commission, the Broward Sheriff's Office, and the Hollywood Police Department, conducting search efforts for -- for Mr. Gurjit Singh.

PHILLIPS: Well, you know, I've talked to Coast Guard pilots and those in the search and rescue. It's pretty exhilarating when you're able to save someone's life like this.

What was the reaction from the pilots and those on the smaller ships, once they saw that he was alive and they were able to get him out? How did they extract him from the water?

BARTLETT: Well, actually he was picked up by a good Samaritan who had heard our marine information broadcast which was soliciting the help of any local mariners in the area. Luckily, he arrived on scene.

Mr. Singh was actually picked up about five miles east of Hillsborough in West Florida, which is just north of Port Everglades, which was right around the area where -- where we were searching at the time.

But of course, once we received notification he was picked up and he was conscious, you know, of course the Coast Guard does express a big sigh of relief, especially when we heard notification that he was wearing a life jacket, which is definitely a major ingredient to what -- what helped him stay alive at sea, especially for such a long duration of time.

PHILLIPS: Well, how about that good Samaritan? Is it a he or a she and will that individual be properly rewarded in anyway?

BARTLETT: I don't have any information on that right now.

PHILLIPS: What about the condition of Gurjit Singh? How was he?

BARTLETT: Well, at the time of the transfer, he was alert. He was very tired, which is expected, but he was alert, and he was alive. And he was transferred to EMS.

As far as the motor vessel Big Red, we do definitely applaud his diligence and his ability to pull him out of the water and safely conduct a rescue, you know, before we could.

PHILLIPS: Petty Officer Sandy Bartlett with the U.S. Coast Guard, thank you.

BARTLETT: Thank you.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next, on LIVE FROM, mixing terror and tunes. Prince's new video casts an Oscar nominated actress as an Arab-American suicide bomber. Is he going too far?

Later on LIVE FROM, paying for protection, price gouging for flu shots. What you need to know to survive the shot shortage.

And tomorrow, who wins round three? The impact of the final presidential debate on the election.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: Twenty days and one debate to go before the election. And already, thousands of Americans have made their pick for president. In 31 states, people can vote absentee for any reason. And this year, it's expected to be huge, especially in the battleground state of Iowa.

CNN's Keith Oppenheim takes a look at the impact it could have on the tight race for the White House.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): Wilma Davis is on a mission.

WILMA DAVIS, KERRY SUPPORTER: I definitely want to see Kerry elected. And I'll do whatever I can to help.

OPPENHEIM: She's a courier, trained by the state, working for the Democratic Party, volunteering to pick up absentee ballots. DAVIS: Hi!

OPPENHEIM: Etta Mae Wilson hands over two ballots. She's 87. Her husband Don is 88. Both are voting for John Kerry. Because of health concerns, they're voting from home, something they've never done before.

OPPENHEIM (on camera): Did you feel pretty good about what you did with early voting?

DON WILSON, KERRY SUPPORTER: Yes, I do.

OPPENHEIM: Because why?

WILSON: It's done, and if for some reason we couldn't get to the poll, why, we do have our vote in.

UNIDENTIFIED MALE: Voting on both sides of the ballot...

OPPENHEIM (voice-over): Four years ago, 20 percent of Iowa's ballots were cast early. In fact, while George W. Bush won the election day vote, Al Gore won the absentee vote by enough of a margin to take the state by a nose.

This time around, it's expected close to a third of Iowa's ballots could come in early. People can do it by mail or just pop into an election office.

Tom Cox and his wife Jane came in to cast votes for George W. Bush.

(on camera) Do you have any sense as to whether or not early voting has much of an impact on how people vote in Iowa in general? Do you think it makes a difference?

TOM COX, VOTER: A lot more than they used to.

OPPENHEIM: What's the difference?

COX: More people are voting.

OPPENHEIM (voice-over): The truth is, no one's quite sure yet if early voting means more voting.

UNIDENTIFIED FEMALE: Victory 2004.

OPPENHEIM: But Democrats here are banking on it, believing if they can encourage the party faithful to vote early, they can then devote more energy to the undecideds.

UNIDENTIFIED MALE: I was wondering if we can count on your support.

OPPENHEIM: Republicans are counting on loyalty, that more of their supporters will show up on election day than Democrats.

Iowans seem to like all these voting options, but some here believe there's a down side.

PROF. DENNIS GOLDFORD, DRAKE UNIVERSITY: If they vote early, they've walked out of the football game in the middle of the third quarter, and there's still a quarter and a half to go, and the whole tenor of the game may change.

OPPENHEIM: In a sense, early voting has already changed the game in Iowa. The question is, has early voting expanded the number of people taking part in democracy? Or has it just shifted the timing of the voters and the tactics of the parties?

UNIDENTIFIED MALE: Thank you very much.

OPPENHEIM: Keith Oppenheim, CNN, Des Moines.

(END VIDEOTAPE)

PHILLIPS: A New York newspaper says it may be the most tasteless music video ever. It's the new one from Prince, called "Cinnamon Girl."

The story involves an Arab-American teen, troubled by racism, who imagines she's blowing herself up in an airport. The girl is played by Keisha-Castle Hughes who starred, as you remember, in "Whale Rider." No comment from Prince.

The video's director says none of it is literal, but you get the picture.

Microsoft is warning of new security flaws in its software. Rhonda Schaffler joins us now live from the New York Stock Exchange with the details on that.

Hi, Rhonda.

(STOCK REPORT)

(COMMERCIAL BREAK)

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