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Kerry Campaigns in Florida, Discussing Health Care, Iraq; Bush Set to Delivery Policy Speech in New Jersey; Early Voting Begins Today; Bush, Kerry Propose Flu Vaccine Solutions; Inside Look at Baghdad's Green Zone

Aired October 18, 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.


KYRA PHILLIPS, CO-HOST: Live this hour, President Bush on the campaign trail in New Jersey, set to make a major policy speech on terrorism. We'll bring that to you live.
Also live this hour, Senator John Kerry in Florida with health care on his mind. We'll bring you his speech when it happens.

The Florida election. Voting starts today, and it's already causing a controversy. Will we see a repeat of 2000?

Iraq's Green Zone becomes a danger zone. Recent insurgent attacks in what is supposed to be the safest place in the country. We'll go in depth.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is off. CNN's LIVE FROM starts right now.

John Kerry's back in Florida today, and flu's on his mind. Also allegations of arrogant boasting on the president's part. And early voting and hopes of an early bedtime November 2.

CNN's Frank Buckley is our man in Tampa with the latest -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Hey there, Kyra. As usual with all the good intel, you know everything that Senator Kerry is talking about today. That arrogant boasting reference to what Senator Kerry said today about President Bush and his Iraq policies.

Now, Senator Kerry is coming here to Tampa to speak this hour about health care policies. One aide saying that Senator Kerry will deliver an indictment of President Bush's health care policies. He'll also lay out a plan to deal with the shortage of flu vaccines.

But earlier today in south Florida and West Palm Beach, Senator Kerry took the opportunity to criticize President Bush on Iraq, Senator Kerry picking up on a "Washington Post" article that quotes the former top commander in Iraq, Lieutenant General Ricardo Sanchez, who in a letter he reportedly sent to Pentagon officials last winter complained of the dire supply shortages that were going on in Iraq.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Let me tell you something that I learned when I fought in Vietnam. Listen to the troops and give the troops the equipment that they need. Stand up for the troops. Fight for the troops. Lead the troops.

And we deserve new leadership that stands up and fights for the troops in our country.

(END VIDEO CLIP)

BUCKLEY: Senator Kerry campaigning across the state of Florida. He was in West Palm this morning. He'll be in Tampa shortly and then also in Orlando.

A very important day as you mentioned, Kyra, here in Florida. It is the beginning of the early voting process. Florida residents can already begin voting. And earlier today, Senator Kerry escorted some senior citizens into a van, sending them off for the early voting.

Here in Tampa, he'll talk about health care policies, but an aide tells me that he'll probably begin his remarks once again talking about Iraq. Aides to Senator Kerry saying this goes to the heart of what they believe is wrong with President Bush, someone who is misleading the U.S. on a variety of different issues -- Kyra.

PHILLIPS: Frank, it will be interesting to see how that voting goes. Frank Buckley, thanks so much.

We're also going to talk more about the flu vaccine with Elizabeth Cohen. That's coming up in just a few minutes.

Meanwhile, 15 days till election day. The campaigners are campaigning. The pollsters are polling. Of course, we've told you now that some voters are voting, really.

Now we get the polling and the voting -- obviously, we got that with Frank. Now we're going to talk about the campaigning and a bit of a painful and delicate topic.

George W. Bush in New Jersey this hour, a state that lost almost 700 people in the attacks of September 11. And he's trumpeting his homeland security credentials and blasting those of John Kerry while the ink still tries on a $33 billion anti-terrorist spending plan for fiscal 2005.

Now, the White House is calling this a major policy speech. How major? CNN's Dana Bash sets the scene for us now in the Philadelphia suburb of Marlton.

Hi, Dana.

DANA BASH, CNN CORRESPONDENT: And Kyra, Bush aides do say that this speech here in New Jersey is a significant one -- that's how they're billing it -- on the war on terror. But they also admit that we're not going to hear any new policy announcements, per se.

Essentially, what we're likely to hear here is a greatest hits of what we have heard from President Bush. Pardon the helicopter. He's coming in now. From President Bush on the issue of terrorism. Only John Kerry (UNINTELLIGIBLE) make the lead on terrorism because he said he doesn't have the proper world view and because he says he doesn't have a record to show that he is able to do so.

Now, if you want to know why the president is focusing once again now at the beginning of this second to last week of campaigning on terrorism, let's look at our latest polls.

First of all, the latest CNN/"USA Today"/Gallup poll shows that Americans, when they're voting for president, look at terrorism No. 1. That's their No. 1 issue with the economy not far behind.

And also, it is still by far the president's No. 1 asset when it comes to issues. He has a 22-point lead against John Kerry when it comes to who is better to lead on terrorism. Much higher than the economy and Iraq and other issues.

Now, what is significant, it goes without saying, is the fact that the president is here in the state of New Jersey. New Jersey certainly has not been in play. As a matter of fact, a Republican has not won this state since Mr. Bush's father won in 1988. And the president lost by 16 points last time around to Al Gore.

But polls show that the race is neck and neck. One shows it is actually even right now. And that is, experts say, because of the issue of terrorism. New Jersey lost some 700 residents on 9/11. And that is, Bush aides unabashedly admit, the reason why he is here.

Now, the Kerry campaign explains that he is just trying to play up the politics of fear, and they are saying that the president should not be doing that. But certainly the president also has Pennsylvania in hind. He's here in southern New Jersey a Philadelphia media market. And Philadelphia is also key to the president in Pennsylvania. That is without question a battleground state -- Kyra.

PHILLIPS: Dana Bash, thanks so much. And we'll take the president's speech in about 15 minutes when he steps up to the podium.

Meanwhile, election day isn't dawning only in the Sunshine State. Motivated voters can also begin casting ballots in Arkansas, Colorado and Texas.

You don't need an exit poll to know the incumbent picked up at least two votes this morning in Houston. Those by Bush 41 and former first lady Barbara.

In Florida, the two-week head start is a direct result of the six-week headache of 2000. We never would have gotten through that without the sage guidance of David Cardwell. Today we welcome, guess who, with some more invaluable insights, David Cardwell.

David, good to see you.

DAVID CARDWELL, FORMER FLORIDA ELECTIONS CHIEF: Good to see you, again, Kyra. PHILLIPS: Well, it looks like it's all -- all the talk is starting up again. First, though, let's talk about voting today and early voting. Give us a little early background on that and why it begins today.

CARDWELL: Early voting was adopted by the legislature after the 2000 election as a means to hopefully reduce congestion at the polling places on election day, particularly for a general election. Make it easier for those who had difficulty getting to the polls and also providing another means for many of our elderly senior citizens to be able to vote if they weren't real comfortable with absentee voting.

PHILLIPS: All right. Now, taking a look at the past and the present and this lawsuit, of course, that's -- that has been engaged on the touch screen voting. Any concerns?

CARDWELL: The issue of whether or not the touch screen machines, which were adopted after the 2000 election, first used in 2002, whether or not the machines we have in Florida should have what's often referred to as a paper audit trail. It was not required by the state. The initial models didn't have it.

But now there's a concern, particularly after the 2002 elections and some local elections, that we need to have something sort of to back up the computer within the machine.

So far, the lawsuit that was brought by Congressman Wexler has sort of been going in and out of the courts. It's back in the courts now, but we're, as of tomorrow, two weeks from the election. Should the court rule in his favor, I don't know that there's a remedy that can be put in place by election day.

PHILLIPS: So at this point, are there a certain amount of counties out of the 67 counties in Florida that will not have a backup paper trail as it starts today?

CARDWELL: There are 15 counties who use touch screens. They don't have -- throughout their entire systems -- any paper trail. Some do in particular locations, for example, if it's early voting at the supervisor's office.

But generally, they don't have the paper trail that many would like to see, which means in the event of a recount, there's nothing to do but other than just read off the results from the touch screen equipment again.

PHILLIPS: Wow. Is it possible that anything could happen within two weeks where a judge says, "OK, before this goes any further, we've got to have some type of remedy"?

CARDWELL: After 2000, I will tell you that I think anything is possible. Whether it's probable or not may be -- or whether it's doable or not is another question.

But it's very possible the Wexler lawsuit may not be decided before the election. The judge could put off a decision until afterwards. Plus, it's in U.S. district court -- excuse me in state court. So I would imagine that, regardless of what happens at the trial level, it will be appealed, which may delay any implementation.

So it remains to be seen whether it has any effect on this election or not, or whether or not we're even so close that we have to have a recount.

PHILLIPS: Oh, boy. It will be interesting to follow that.

All right. Finally, let's talk. We know a lot about the hurricane damage. We talked a little bit about, OK, is that going to affect election time. Now so far, no equipment damage, correct, just problems with polling stations being wiped out?

CARDWELL: Correct. We haven't heard of any equipment that was damaged but many polling places were either destroyed or damaged to the point that they can't be used, which means polling places will be moved. That's going to create some confusion, particularly in southwest Florida around Punta Gorda, Port Charles area that was very heavily hit. There's going to be, I'm sure, some confusion because they're going to move the polling places.

But you have people that are still there, that are not back in their homes, because their homes don't exist. They may not be getting regular mail service. They may not have telephone service or electricity or whatever.

So it may be that they either go to the wrong polling place or else they just decide to sit out the election because they think they have more important things about rebuilding their lives.

PHILLIPS: Florida election expert David Cardwell. I don't know, David. I just have this feeling we're going to be talking again very soon. Do you have that feeling?

CARDWELL: For about another 15 days, at least.

PHILLIPS: OK. David, thanks so much for your time today.

CARDWELL: OK.

PHILLIPS: All right. Well, crisis or no crisis, when it comes to the shortage of flu vaccine, the Bush administration's top health official says -- and we can quote -- "Be calm, don't stand in line. We're on top of things."

On the other hand, the top doc at the Centers for Disease Control and Prevention says it's too soon to tell how serious the shortfall will be.

Now, one thing's for sure: it's a potent political talking point. And it will come up again in a Kerry speech in flu-fearing Florida. Democrats' focus on health care plays to his overall strength on domestic issues. On health, Medicare, the deficit and the economy, Kerry outperforms Bush in a recent CNN/"USA today"/Gallup poll. Now flu is no specter of politics, of course. And that brings us to medical correspondent Elizabeth Cohen with the latest on this scramble for the serum.

What do we know?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Well, it's amazing how this medical situation has now become a political situation.

PHILLIPS: Imagine that.

COHEN: Imagine that. Isn't it incredible?

PHILLIPS: Shouldn't surprise us.

COHEN: That's right. Because this is an issue that makes people very fearful. All of a sudden half of the nation's supply of flu shots are no longer available.

And so this afternoon Kerry is expected to unveil his plan, what he would do so that this kind of thing would never happen again. He's also taken out an ad that centers solely around flu shots. And in it he derides President Bush and says that Bush was basically asleep at the switch and wasn't able to deal with this situation for only having half as many flue shots as he was supposed to have.

And let's talk a bit about Kerry's plan. He says he has a plan so that when he's president this wouldn't happen again. What's interesting is when you look at the basic principles of the plan, they're really very similar to what President Bush says he's done to try to make sure that this kind of thing won't happen again. And that's why we've titled this "Bush and Kerry Flu Vaccine Plans," because they are so similar.

First of all, both say they would work with manufacturers to get a larger supply of vaccine, because there's a problem with not having enough.

Secondly, they both say that they would establish stockpiles of the vaccine so that they could be turned to in case of emergency.

And also increase funding for new ways to make the flu vaccine. The flu vaccine is now made in this very slow laborious way. It takes months to make the vaccine. And both men say that they would spend millions trying to come up with a better, more modern way of making the vaccine.

PHILLIPS: All right. I want to talk about maybe another approach that's out there besides these two. But real quickly, Chiron, haven't heard much about the company.

What went wrong, the investigation into this company in London, and the contamination? I mean, there's so much talk out there. What's the status of finding out who or what is to be held accountable for what went wrong? COHEN: Well, the FDA just went to England and came back. And they reported that, well, you know, maybe some people kind of sort of hoped that there would be some salvageable vaccine in that factory. But in fact, there isn't. There is contamination. None of it is salvageable.

They said the whole process was just flawed, basically.

And so this was a factory in England that was making half of the U.S.' supply of flu vaccine. So of course, some people said, "Gee, how did we get ourselves in the position of having another country make half of the supply for the flu vaccine in the United States?" It's an American company, but they were producing it in England.

PHILLIPS: OK. Now, Bush and Kerry, you talked about their approaches. Is there another approach out there?

COHEN: There is another approach that some people advocate, but so far neither candidate has advocated it, and that is just turning the entire vaccine production to the government.

Right now private companies make vaccine. It's not a very lucrative business to be in. You don't make a lot of money. So many vaccine production -- producers have simply dropped out. They said, "Hey, we're not making good money. We're not going to do this anymore."

So there are several folks and universities and experts who say why doesn't the government just make it? They can do that. The government makes highways because -- for the public good. Why can't the government make vaccine for the public good?

So far, neither candidate has espoused that position.

PHILLIPS: All right. Elizabeth Cohen, thank you so much.

COHEN: Thanks.

PHILLIPS: And a reminder: we do expect to hear from both presidential candidates live this hour: John Kerry on health care, and in just a few minutes President Bush set to talk on terrorism. We will bring you both of those events live when they happen.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, painkillers under the microscope. A drug maker plans a major clinical study on a popular arthritis drug. Does it pose a risk to your heart?

Later on LIVE FROM, inside the new Iraqi National Guard. Twenty- four hours in training with Americans and Iraqis on patrol for insurgents. Will these troops be ready to keep order in their chaotic country?

Tomorrow on LIVE FROM, America votes. Where do the candidates stand on decisive issues? We'll go in depth. (END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: Live from Marlton, New Jersey, the president of the United States getting ready to step up to the podium to talk homeland security. As soon as he does that, we'll take you to the event live.

Meanwhile, Iraq's interim prime minister, Ayad Allawi, says that his country is working 24 hours a day to fight terrorists. Allawi says that the government has collected mines, explosives, weapons in a weapons amnesty program. And it's all going to be expanded nationwide.

He says the country faces terrorism on three fronts: professional, criminals, members of the former Ba'athist regime and foreign elements inside Iraq.

Now Britain's defense minister says his government will make a decision by mid-week on a U.S. request to redeploy some British troops in Iraq. That move would free U.S. troops to expand their operations against terrorism.

British officials say any redeployment would not include sending British troops to Fallujah or Baghdad.

Now, the Green Zone. It's been described as a mini-USA, surrounded by a battlefield in Baghdad. Now a pair of suicide bombings have shattered the illusion of safety for Americans and other westerners living in the heavily fortified area.

Now last Thursday five people were killed, including three American security contractors, when suicide bombers slipped past security and blew themselves up inside a market and cafe. Twenty- seven other people were wounded.

Joining us now from London, William Langewiesche, national correspondent for the "Atlantic Monthly." He went in depth into the Green Zone, writing the latest cover story for his magazine.

William, good to see you.

WILLIAM LANGEWIESCHE, "ATLANTIC MONTHLY": Thank you.

PHILLIPS: Well, you have a bit of a different perspective. And that is, the Green Zone and the effect on the entire occupation overseas. As you started working on this story, spending time in the Green Zone, I understand it was the isolation factor that very much became apparent to you.

LANGEWIESCHE: The Green Zone is sort of the physical manifestation of the entire history of the American occupation of Iraq since the fall of Baghdad. And that story is really one of isolation.

Moreover, it's one of increasing isolation week-by-week, month- by-month. Things have been getting worse, not better, of course. We know that.

PHILLIPS: Now, William, U.S. military troops, those planning out the strategy there, would say we need the Green Zone. We have to have a heavily fortified area to protect us, to protect the planning. But as you spent time there, do you think that -- that that's justified?

LANGEWIESCHE: There are really two answers to that.

The first is that the placement of the Green Zone in the center of Baghdad in the very buildings that Saddam Hussein used to rule and terrorize Iraq has clearly been a mistake. And I think it's a mistake that was unanticipated.

In the beginning, it didn't seem like a mistake. And now it has become a mistake, a block on the center of the city, a symbolic insult to the surrounding Iraqi population and so forth.

On the other hand, there obviously is a need for some sort of fortified compound from which to run this occupation. And there are various possibilities. I mean, Baghdad is surrounded by open land, if nothing else. And there is the airport, which already is fortified.

So there are alternatives to putting this thing in the middle of Baghdad. Aside from that, I think we need to, as Americans, to recognize that when we go into a place like Iraq, whether we are left or right, whether we are Republican or Democrat, we will do this to ourselves.

We've seen this elsewhere, in the Balkans, for instance, and in other parts of the world. We will, because of force protection, relatively easily be pushed back into a condition of isolation. That is the mental condition in Iraq, of the occupation and now of the embassy. And it -- it -- it sort of is inevitable. It is part of who we are. We better take it into account next time.

PHILLIPS: You spent a lot of time getting to know legal advisers to Paul Bremer and now legal advisers there within the Green Zone who are trying to develop a constitution and the elections and a democratic process in Iraq. You told me that you were pretty impressed by these individuals. Why?

LANGEWIESCHE: There were many impressive people and are today many impressive people in the Green Zone. And there are smart people. There are dedicated people, people willing to get their hands dirty, to take a certain amount of risk. I think the risk remains very small in the Green Zone.

But I was impressed with that crowd in particular, because they were doing some of the most constructive, connected work with -- of the American occupation.

And specifically, they did the necessary -- they laid the groundwork necessary for the upcoming election, which, if anything, offers any glimmer of a solution in Iraq is that. Not that I'm very optimistic about it. I think they themselves are not optimistic about it. But you have to deal with what you are given. And they were -- they did not make this war. They were willing to go forward, this very brainy crew underneath Bremer, and do the necessary work to try to extricate something positive from this situation and to mitigate the severe damage to the United States that is occurring now.

PHILLIPS: William Langewiesche, reporter, national correspondent, actually, for "Atlantic Monthly." Interesting cover story. Gave us a different perspective today. I thank you for your time.

LANGEWIESCHE: Thank you.

PHILLIPS: Well, Merck's withdrawal of Vioxx from world markets earlier this month has drawn attention to the safety of rival arthritis drugs. One drug company is going on the offensive.

Rhonda Schaffler has the story now from the New York Stock Exchange.

Hi, Rhonda.

(STOCK REPORT)

PHILLIPS: Live now from Marlton, New Jersey, the president there this hour, delivering what his aides are describing as a major terrorism speech. That speech dovetails with a bill that Mr. Bush signed this morning, actually. You're listening to the crowd there cheering the president on.

The bill that he signed gives the department of homeland security $33 billion for this budget year. We're going to listen in as he speaks to supporters -- actually we're going to hold off until he get in a little more depth in the subject matter.

Let's bring in Bill Schneider to join us to talk about maximizing the impact of his message here in New Jersey.

I guess let's start off talking about New Jersey. Usually votes Democratic in presidential races.

BILL SCHNEIDER, CNN POLITICAL ANALYST: Yes.

PHILLIPS: But New Jersey also has been affected by 9/11, lost a lot of people in those attacks. And he just signed this bill. Let's talk about the correlation, Bill.

SCHNEIDER: Yes. Well, New Jersey gave Al Gore a 16-point margin. And it has not been considered a battleground state for most of this year.

But the latest poll from Farleigh Dickinson University shows a dead heat: Kerry 46, slush 46. What's behind it? The No. 1 issue of concern to New Jersey voters by far is national security, the war on terror. Forty-four percent, nearly half the voters of New Jersey, cite that as their top issue, followed by the economy, only half as much, 23 percent. Terrorism is a big issue in New Jersey. New Jersey lost hundreds of people, second only to New York state, on September 11, 2001. It is the top concern.

And I should point out he's speaking in an area close to Pennsylvania, which really is a battleground state. And it's covered by the Pennsylvania media market. So he's trying to get a two for one in this speech.

PHILLIPS: All right, Bill. Let's list on the president and talk a little bit more once he wraps up.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... That very attitude is what blinded America to the war being waged against us. And by not seeing the war, our government had no comprehensive strategy to fight it.

September the 11th, 2001 changed all that. We realized that the apparent security of the 1990s was an illusion. The people of New Jersey were among the first to understand how the world changed. September the 11th, from places like Hoboken, New Jersey City, you could look across the Hudson River and see the Twin Towers burning.

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Aired October 18, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: Live this hour, President Bush on the campaign trail in New Jersey, set to make a major policy speech on terrorism. We'll bring that to you live.
Also live this hour, Senator John Kerry in Florida with health care on his mind. We'll bring you his speech when it happens.

The Florida election. Voting starts today, and it's already causing a controversy. Will we see a repeat of 2000?

Iraq's Green Zone becomes a danger zone. Recent insurgent attacks in what is supposed to be the safest place in the country. We'll go in depth.

From the CNN Center in Atlanta, I'm Kyra Phillips. Miles is off. CNN's LIVE FROM starts right now.

John Kerry's back in Florida today, and flu's on his mind. Also allegations of arrogant boasting on the president's part. And early voting and hopes of an early bedtime November 2.

CNN's Frank Buckley is our man in Tampa with the latest -- Frank.

FRANK BUCKLEY, CNN CORRESPONDENT: Hey there, Kyra. As usual with all the good intel, you know everything that Senator Kerry is talking about today. That arrogant boasting reference to what Senator Kerry said today about President Bush and his Iraq policies.

Now, Senator Kerry is coming here to Tampa to speak this hour about health care policies. One aide saying that Senator Kerry will deliver an indictment of President Bush's health care policies. He'll also lay out a plan to deal with the shortage of flu vaccines.

But earlier today in south Florida and West Palm Beach, Senator Kerry took the opportunity to criticize President Bush on Iraq, Senator Kerry picking up on a "Washington Post" article that quotes the former top commander in Iraq, Lieutenant General Ricardo Sanchez, who in a letter he reportedly sent to Pentagon officials last winter complained of the dire supply shortages that were going on in Iraq.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Let me tell you something that I learned when I fought in Vietnam. Listen to the troops and give the troops the equipment that they need. Stand up for the troops. Fight for the troops. Lead the troops.

And we deserve new leadership that stands up and fights for the troops in our country.

(END VIDEO CLIP)

BUCKLEY: Senator Kerry campaigning across the state of Florida. He was in West Palm this morning. He'll be in Tampa shortly and then also in Orlando.

A very important day as you mentioned, Kyra, here in Florida. It is the beginning of the early voting process. Florida residents can already begin voting. And earlier today, Senator Kerry escorted some senior citizens into a van, sending them off for the early voting.

Here in Tampa, he'll talk about health care policies, but an aide tells me that he'll probably begin his remarks once again talking about Iraq. Aides to Senator Kerry saying this goes to the heart of what they believe is wrong with President Bush, someone who is misleading the U.S. on a variety of different issues -- Kyra.

PHILLIPS: Frank, it will be interesting to see how that voting goes. Frank Buckley, thanks so much.

We're also going to talk more about the flu vaccine with Elizabeth Cohen. That's coming up in just a few minutes.

Meanwhile, 15 days till election day. The campaigners are campaigning. The pollsters are polling. Of course, we've told you now that some voters are voting, really.

Now we get the polling and the voting -- obviously, we got that with Frank. Now we're going to talk about the campaigning and a bit of a painful and delicate topic.

George W. Bush in New Jersey this hour, a state that lost almost 700 people in the attacks of September 11. And he's trumpeting his homeland security credentials and blasting those of John Kerry while the ink still tries on a $33 billion anti-terrorist spending plan for fiscal 2005.

Now, the White House is calling this a major policy speech. How major? CNN's Dana Bash sets the scene for us now in the Philadelphia suburb of Marlton.

Hi, Dana.

DANA BASH, CNN CORRESPONDENT: And Kyra, Bush aides do say that this speech here in New Jersey is a significant one -- that's how they're billing it -- on the war on terror. But they also admit that we're not going to hear any new policy announcements, per se.

Essentially, what we're likely to hear here is a greatest hits of what we have heard from President Bush. Pardon the helicopter. He's coming in now. From President Bush on the issue of terrorism. Only John Kerry (UNINTELLIGIBLE) make the lead on terrorism because he said he doesn't have the proper world view and because he says he doesn't have a record to show that he is able to do so.

Now, if you want to know why the president is focusing once again now at the beginning of this second to last week of campaigning on terrorism, let's look at our latest polls.

First of all, the latest CNN/"USA Today"/Gallup poll shows that Americans, when they're voting for president, look at terrorism No. 1. That's their No. 1 issue with the economy not far behind.

And also, it is still by far the president's No. 1 asset when it comes to issues. He has a 22-point lead against John Kerry when it comes to who is better to lead on terrorism. Much higher than the economy and Iraq and other issues.

Now, what is significant, it goes without saying, is the fact that the president is here in the state of New Jersey. New Jersey certainly has not been in play. As a matter of fact, a Republican has not won this state since Mr. Bush's father won in 1988. And the president lost by 16 points last time around to Al Gore.

But polls show that the race is neck and neck. One shows it is actually even right now. And that is, experts say, because of the issue of terrorism. New Jersey lost some 700 residents on 9/11. And that is, Bush aides unabashedly admit, the reason why he is here.

Now, the Kerry campaign explains that he is just trying to play up the politics of fear, and they are saying that the president should not be doing that. But certainly the president also has Pennsylvania in hind. He's here in southern New Jersey a Philadelphia media market. And Philadelphia is also key to the president in Pennsylvania. That is without question a battleground state -- Kyra.

PHILLIPS: Dana Bash, thanks so much. And we'll take the president's speech in about 15 minutes when he steps up to the podium.

Meanwhile, election day isn't dawning only in the Sunshine State. Motivated voters can also begin casting ballots in Arkansas, Colorado and Texas.

You don't need an exit poll to know the incumbent picked up at least two votes this morning in Houston. Those by Bush 41 and former first lady Barbara.

In Florida, the two-week head start is a direct result of the six-week headache of 2000. We never would have gotten through that without the sage guidance of David Cardwell. Today we welcome, guess who, with some more invaluable insights, David Cardwell.

David, good to see you.

DAVID CARDWELL, FORMER FLORIDA ELECTIONS CHIEF: Good to see you, again, Kyra. PHILLIPS: Well, it looks like it's all -- all the talk is starting up again. First, though, let's talk about voting today and early voting. Give us a little early background on that and why it begins today.

CARDWELL: Early voting was adopted by the legislature after the 2000 election as a means to hopefully reduce congestion at the polling places on election day, particularly for a general election. Make it easier for those who had difficulty getting to the polls and also providing another means for many of our elderly senior citizens to be able to vote if they weren't real comfortable with absentee voting.

PHILLIPS: All right. Now, taking a look at the past and the present and this lawsuit, of course, that's -- that has been engaged on the touch screen voting. Any concerns?

CARDWELL: The issue of whether or not the touch screen machines, which were adopted after the 2000 election, first used in 2002, whether or not the machines we have in Florida should have what's often referred to as a paper audit trail. It was not required by the state. The initial models didn't have it.

But now there's a concern, particularly after the 2002 elections and some local elections, that we need to have something sort of to back up the computer within the machine.

So far, the lawsuit that was brought by Congressman Wexler has sort of been going in and out of the courts. It's back in the courts now, but we're, as of tomorrow, two weeks from the election. Should the court rule in his favor, I don't know that there's a remedy that can be put in place by election day.

PHILLIPS: So at this point, are there a certain amount of counties out of the 67 counties in Florida that will not have a backup paper trail as it starts today?

CARDWELL: There are 15 counties who use touch screens. They don't have -- throughout their entire systems -- any paper trail. Some do in particular locations, for example, if it's early voting at the supervisor's office.

But generally, they don't have the paper trail that many would like to see, which means in the event of a recount, there's nothing to do but other than just read off the results from the touch screen equipment again.

PHILLIPS: Wow. Is it possible that anything could happen within two weeks where a judge says, "OK, before this goes any further, we've got to have some type of remedy"?

CARDWELL: After 2000, I will tell you that I think anything is possible. Whether it's probable or not may be -- or whether it's doable or not is another question.

But it's very possible the Wexler lawsuit may not be decided before the election. The judge could put off a decision until afterwards. Plus, it's in U.S. district court -- excuse me in state court. So I would imagine that, regardless of what happens at the trial level, it will be appealed, which may delay any implementation.

So it remains to be seen whether it has any effect on this election or not, or whether or not we're even so close that we have to have a recount.

PHILLIPS: Oh, boy. It will be interesting to follow that.

All right. Finally, let's talk. We know a lot about the hurricane damage. We talked a little bit about, OK, is that going to affect election time. Now so far, no equipment damage, correct, just problems with polling stations being wiped out?

CARDWELL: Correct. We haven't heard of any equipment that was damaged but many polling places were either destroyed or damaged to the point that they can't be used, which means polling places will be moved. That's going to create some confusion, particularly in southwest Florida around Punta Gorda, Port Charles area that was very heavily hit. There's going to be, I'm sure, some confusion because they're going to move the polling places.

But you have people that are still there, that are not back in their homes, because their homes don't exist. They may not be getting regular mail service. They may not have telephone service or electricity or whatever.

So it may be that they either go to the wrong polling place or else they just decide to sit out the election because they think they have more important things about rebuilding their lives.

PHILLIPS: Florida election expert David Cardwell. I don't know, David. I just have this feeling we're going to be talking again very soon. Do you have that feeling?

CARDWELL: For about another 15 days, at least.

PHILLIPS: OK. David, thanks so much for your time today.

CARDWELL: OK.

PHILLIPS: All right. Well, crisis or no crisis, when it comes to the shortage of flu vaccine, the Bush administration's top health official says -- and we can quote -- "Be calm, don't stand in line. We're on top of things."

On the other hand, the top doc at the Centers for Disease Control and Prevention says it's too soon to tell how serious the shortfall will be.

Now, one thing's for sure: it's a potent political talking point. And it will come up again in a Kerry speech in flu-fearing Florida. Democrats' focus on health care plays to his overall strength on domestic issues. On health, Medicare, the deficit and the economy, Kerry outperforms Bush in a recent CNN/"USA today"/Gallup poll. Now flu is no specter of politics, of course. And that brings us to medical correspondent Elizabeth Cohen with the latest on this scramble for the serum.

What do we know?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Well, it's amazing how this medical situation has now become a political situation.

PHILLIPS: Imagine that.

COHEN: Imagine that. Isn't it incredible?

PHILLIPS: Shouldn't surprise us.

COHEN: That's right. Because this is an issue that makes people very fearful. All of a sudden half of the nation's supply of flu shots are no longer available.

And so this afternoon Kerry is expected to unveil his plan, what he would do so that this kind of thing would never happen again. He's also taken out an ad that centers solely around flu shots. And in it he derides President Bush and says that Bush was basically asleep at the switch and wasn't able to deal with this situation for only having half as many flue shots as he was supposed to have.

And let's talk a bit about Kerry's plan. He says he has a plan so that when he's president this wouldn't happen again. What's interesting is when you look at the basic principles of the plan, they're really very similar to what President Bush says he's done to try to make sure that this kind of thing won't happen again. And that's why we've titled this "Bush and Kerry Flu Vaccine Plans," because they are so similar.

First of all, both say they would work with manufacturers to get a larger supply of vaccine, because there's a problem with not having enough.

Secondly, they both say that they would establish stockpiles of the vaccine so that they could be turned to in case of emergency.

And also increase funding for new ways to make the flu vaccine. The flu vaccine is now made in this very slow laborious way. It takes months to make the vaccine. And both men say that they would spend millions trying to come up with a better, more modern way of making the vaccine.

PHILLIPS: All right. I want to talk about maybe another approach that's out there besides these two. But real quickly, Chiron, haven't heard much about the company.

What went wrong, the investigation into this company in London, and the contamination? I mean, there's so much talk out there. What's the status of finding out who or what is to be held accountable for what went wrong? COHEN: Well, the FDA just went to England and came back. And they reported that, well, you know, maybe some people kind of sort of hoped that there would be some salvageable vaccine in that factory. But in fact, there isn't. There is contamination. None of it is salvageable.

They said the whole process was just flawed, basically.

And so this was a factory in England that was making half of the U.S.' supply of flu vaccine. So of course, some people said, "Gee, how did we get ourselves in the position of having another country make half of the supply for the flu vaccine in the United States?" It's an American company, but they were producing it in England.

PHILLIPS: OK. Now, Bush and Kerry, you talked about their approaches. Is there another approach out there?

COHEN: There is another approach that some people advocate, but so far neither candidate has advocated it, and that is just turning the entire vaccine production to the government.

Right now private companies make vaccine. It's not a very lucrative business to be in. You don't make a lot of money. So many vaccine production -- producers have simply dropped out. They said, "Hey, we're not making good money. We're not going to do this anymore."

So there are several folks and universities and experts who say why doesn't the government just make it? They can do that. The government makes highways because -- for the public good. Why can't the government make vaccine for the public good?

So far, neither candidate has espoused that position.

PHILLIPS: All right. Elizabeth Cohen, thank you so much.

COHEN: Thanks.

PHILLIPS: And a reminder: we do expect to hear from both presidential candidates live this hour: John Kerry on health care, and in just a few minutes President Bush set to talk on terrorism. We will bring you both of those events live when they happen.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, painkillers under the microscope. A drug maker plans a major clinical study on a popular arthritis drug. Does it pose a risk to your heart?

Later on LIVE FROM, inside the new Iraqi National Guard. Twenty- four hours in training with Americans and Iraqis on patrol for insurgents. Will these troops be ready to keep order in their chaotic country?

Tomorrow on LIVE FROM, America votes. Where do the candidates stand on decisive issues? We'll go in depth. (END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: Live from Marlton, New Jersey, the president of the United States getting ready to step up to the podium to talk homeland security. As soon as he does that, we'll take you to the event live.

Meanwhile, Iraq's interim prime minister, Ayad Allawi, says that his country is working 24 hours a day to fight terrorists. Allawi says that the government has collected mines, explosives, weapons in a weapons amnesty program. And it's all going to be expanded nationwide.

He says the country faces terrorism on three fronts: professional, criminals, members of the former Ba'athist regime and foreign elements inside Iraq.

Now Britain's defense minister says his government will make a decision by mid-week on a U.S. request to redeploy some British troops in Iraq. That move would free U.S. troops to expand their operations against terrorism.

British officials say any redeployment would not include sending British troops to Fallujah or Baghdad.

Now, the Green Zone. It's been described as a mini-USA, surrounded by a battlefield in Baghdad. Now a pair of suicide bombings have shattered the illusion of safety for Americans and other westerners living in the heavily fortified area.

Now last Thursday five people were killed, including three American security contractors, when suicide bombers slipped past security and blew themselves up inside a market and cafe. Twenty- seven other people were wounded.

Joining us now from London, William Langewiesche, national correspondent for the "Atlantic Monthly." He went in depth into the Green Zone, writing the latest cover story for his magazine.

William, good to see you.

WILLIAM LANGEWIESCHE, "ATLANTIC MONTHLY": Thank you.

PHILLIPS: Well, you have a bit of a different perspective. And that is, the Green Zone and the effect on the entire occupation overseas. As you started working on this story, spending time in the Green Zone, I understand it was the isolation factor that very much became apparent to you.

LANGEWIESCHE: The Green Zone is sort of the physical manifestation of the entire history of the American occupation of Iraq since the fall of Baghdad. And that story is really one of isolation.

Moreover, it's one of increasing isolation week-by-week, month- by-month. Things have been getting worse, not better, of course. We know that.

PHILLIPS: Now, William, U.S. military troops, those planning out the strategy there, would say we need the Green Zone. We have to have a heavily fortified area to protect us, to protect the planning. But as you spent time there, do you think that -- that that's justified?

LANGEWIESCHE: There are really two answers to that.

The first is that the placement of the Green Zone in the center of Baghdad in the very buildings that Saddam Hussein used to rule and terrorize Iraq has clearly been a mistake. And I think it's a mistake that was unanticipated.

In the beginning, it didn't seem like a mistake. And now it has become a mistake, a block on the center of the city, a symbolic insult to the surrounding Iraqi population and so forth.

On the other hand, there obviously is a need for some sort of fortified compound from which to run this occupation. And there are various possibilities. I mean, Baghdad is surrounded by open land, if nothing else. And there is the airport, which already is fortified.

So there are alternatives to putting this thing in the middle of Baghdad. Aside from that, I think we need to, as Americans, to recognize that when we go into a place like Iraq, whether we are left or right, whether we are Republican or Democrat, we will do this to ourselves.

We've seen this elsewhere, in the Balkans, for instance, and in other parts of the world. We will, because of force protection, relatively easily be pushed back into a condition of isolation. That is the mental condition in Iraq, of the occupation and now of the embassy. And it -- it -- it sort of is inevitable. It is part of who we are. We better take it into account next time.

PHILLIPS: You spent a lot of time getting to know legal advisers to Paul Bremer and now legal advisers there within the Green Zone who are trying to develop a constitution and the elections and a democratic process in Iraq. You told me that you were pretty impressed by these individuals. Why?

LANGEWIESCHE: There were many impressive people and are today many impressive people in the Green Zone. And there are smart people. There are dedicated people, people willing to get their hands dirty, to take a certain amount of risk. I think the risk remains very small in the Green Zone.

But I was impressed with that crowd in particular, because they were doing some of the most constructive, connected work with -- of the American occupation.

And specifically, they did the necessary -- they laid the groundwork necessary for the upcoming election, which, if anything, offers any glimmer of a solution in Iraq is that. Not that I'm very optimistic about it. I think they themselves are not optimistic about it. But you have to deal with what you are given. And they were -- they did not make this war. They were willing to go forward, this very brainy crew underneath Bremer, and do the necessary work to try to extricate something positive from this situation and to mitigate the severe damage to the United States that is occurring now.

PHILLIPS: William Langewiesche, reporter, national correspondent, actually, for "Atlantic Monthly." Interesting cover story. Gave us a different perspective today. I thank you for your time.

LANGEWIESCHE: Thank you.

PHILLIPS: Well, Merck's withdrawal of Vioxx from world markets earlier this month has drawn attention to the safety of rival arthritis drugs. One drug company is going on the offensive.

Rhonda Schaffler has the story now from the New York Stock Exchange.

Hi, Rhonda.

(STOCK REPORT)

PHILLIPS: Live now from Marlton, New Jersey, the president there this hour, delivering what his aides are describing as a major terrorism speech. That speech dovetails with a bill that Mr. Bush signed this morning, actually. You're listening to the crowd there cheering the president on.

The bill that he signed gives the department of homeland security $33 billion for this budget year. We're going to listen in as he speaks to supporters -- actually we're going to hold off until he get in a little more depth in the subject matter.

Let's bring in Bill Schneider to join us to talk about maximizing the impact of his message here in New Jersey.

I guess let's start off talking about New Jersey. Usually votes Democratic in presidential races.

BILL SCHNEIDER, CNN POLITICAL ANALYST: Yes.

PHILLIPS: But New Jersey also has been affected by 9/11, lost a lot of people in those attacks. And he just signed this bill. Let's talk about the correlation, Bill.

SCHNEIDER: Yes. Well, New Jersey gave Al Gore a 16-point margin. And it has not been considered a battleground state for most of this year.

But the latest poll from Farleigh Dickinson University shows a dead heat: Kerry 46, slush 46. What's behind it? The No. 1 issue of concern to New Jersey voters by far is national security, the war on terror. Forty-four percent, nearly half the voters of New Jersey, cite that as their top issue, followed by the economy, only half as much, 23 percent. Terrorism is a big issue in New Jersey. New Jersey lost hundreds of people, second only to New York state, on September 11, 2001. It is the top concern.

And I should point out he's speaking in an area close to Pennsylvania, which really is a battleground state. And it's covered by the Pennsylvania media market. So he's trying to get a two for one in this speech.

PHILLIPS: All right, Bill. Let's list on the president and talk a little bit more once he wraps up.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... That very attitude is what blinded America to the war being waged against us. And by not seeing the war, our government had no comprehensive strategy to fight it.

September the 11th, 2001 changed all that. We realized that the apparent security of the 1990s was an illusion. The people of New Jersey were among the first to understand how the world changed. September the 11th, from places like Hoboken, New Jersey City, you could look across the Hudson River and see the Twin Towers burning.

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