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Bush Urges Passage of Intelligence Reform; New Counter- Terrorism Center Opens; Al Qaeda Blamed for Attack on American Consulate; Scott Peterson's Friends Try to Save Him from Execution; Explosives Go Missing from Paris Airport; Entertainment News: Stevie Wonder on Eminem, Robert Downey's Elton John Gaffe, Paris Hilton's New Perfume

Aired December 06, 2004 - 14:59   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: We're seeing a little compromise in high stakes on Capitol Hill right now. The lame duck Congress is under intense pressure to pass intelligence reform. We have a live report coming up.
Thousands of Americans in Saudi Arabia are told to take extra security precautions after a brazen terrorist attack on the U.S. consulate in Jeddah. Eight people including three of the gunmen are dead. We'll have details straight ahead.

Outgoing Health Secretary Tommy Thompson is changing his tune about the safety of the nation's food supply days after he warned it could be a terrorist target. He now says America is more prepared than ever to meet that potential threat. Thompson praised implementation of an FDA rule that requires manufacturers to keep a paper trail showing where they got and send food products.

TONY HARRIS, CO-HOST: And today, President Bush is sticking to his guns, that despite all the violence plaguing Iraq, the Iraqi elections will happen on schedule. And on another pressing matter, Mr. Bush issues another call to Congress to pass intelligence reform before it leaves town.

CNN's Elaine Quijano is standing by at the White House with more for us. Hi, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Tony.

That's right. Administration officials continue to say that they are hopeful the intel reform bill can get passed this week. They say they believe it can be.

And over the weekend Vice President Dick Cheney, as well as White House chief of staff Andy Card reached out by phone to congressional leaders on this issue.

While the sticking points remain the immigration concerns, as well as chain of command concerns, we're told that discussions are continuing to center now on the chain of command issues.

Now, last week we've been told that the White House was working on a letter, sending a letter to lawmakers on Capitol Hill, laying out essentially the president's position on intel reform. At last word that letter had not gone out yet, and White House officials say that's because there have been ongoing discussions taking place.

In the meantime, President Bush again today reaffirmed his commitment to the legislation.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I certainly hope the bill gets to my desk soon. I believe we've addressed the concerns of by far the majority of members of both the House and the Senate. As we speak we're working with the key members to address concerns.

I call upon the Congress to pass the intelligence bill. It's a good piece of legislation. It is a necessary piece of legislation. It's a piece of legislation that is important for the security of our country.

(END VIDEO CLIP)

QUIJANO: Now, Mr. Bush made his comments at a morning meeting with Iraq's interim president, Ghazi al-Yawar.

During those discussions, both leaders made clear that on the issue of Iraq, they do not want the elections in that country postponed, saying that would hand the insurgents there a victory. Both men saying despite concerns about violence in that country, they want the elections to proceed as scheduled on January 30.

Now the president today had a second meeting, this one with the king of Jordan, King Abdullah. The two leaders discussed Iraq, as well. Also the Jordanian economy, and the Israeli/Palestinian conflict.

Now, that issue continues to be a concern for the White House, as well. Mr. Bush has made it known that in his second term, he very much wants to see some progress on that front. The president continues to push his vision of a two-state solution of an Israeli state and a Palestinian state coexisting side by side in peace -- Tony.

HARRIS: Elaine Quijano, live from the White House. Elaine, thank you.

KYRA PHILLIPS, CO-HOST: Without a hint of fanfare, a new weapon in the war on terrorism is up and running as of today. Our national security correspondent, David Ensor standing by live in Washington with the new details -- David.

DAVID ENSOR, CNN CORRESPONDENT: Kyra, that's right.

CNN has learned that the National Counter-Terrorism Center formally opens for business Monday, though U.S. government spokesmen are declining comment.

Congressional and executive branch sources say the new agency, which was created under an executive order from President Bush, comes into existence today in a low-key way at a new state-of-the-art facility in northern Virginia.

This video here is one that the U.S. government put out the middle of last year to show what that facility would look like when it's finished. We have not been allowed in to the actual facility yet. So this is just a kind of a peek at how it is expected to look.

The agency replaces the CIA's Terrorist Threat Integration Center, which was founded after the 9/11 attacks to pull all intelligence the U.S. government has on terrorists together into one place, so that analysts can try to connect the dots, that famous phrase.

Under the intelligence reform package that could be approved this week on Capitol Hill, this new agency, the NCTC, would be given additional clout, according to sources.

A senior CIA official, John Brennan, who was director of TTIC, has been made the acting director of this new agency, sources say. Under the new bill, if Mr. Brendan gets the job, he'll be appointed by Mr. Bush, the incumbent presidential appointment, subject to Senate confirmation. He'll be reporting directly to the president on general terrorist information. He'll report, however, to the new director of national intelligence on budget and personnel matters -- Kyra.

PHILLIPS: OK. I'm taking notes here as I'm watching all this, trying to piece it all together.

So we're going to have a new director of national intelligence. That's still yet to be named. Then you're going to have Brennan, who's going to run this new counter-terrorism center. And then you're going to try and tie in the new homeland security secretary and the CIA and the FBI and all the other intelligence.

Do I have it all straight?

ENSOR: It's become yet more alphabet soup, you are exactly right. But this is a very key agency. It's going to have additional clout if the bill becomes law. The president, as I said, by executive order. It's being created today.

Don't know whether Mr. Brennan will get the job or not permanently, but he's the acting director. And the key is to stop the next 9/11, to get the intelligence from the FBI, the CIA, foreign intelligence agencies, anyone who has it, that the U.S. Government can get it from, and put it all together, make sure they're not missing anything.

PHILLIPS: That will be interesting to see how it all pieces together. David Ensor, thank you so much.

Well, U.S. officials tell CNN al Qaeda is suspected of a deadly attack on a U.S. consulate in Saudi Arabia. Five gunmen managed to blast into the compound in Jeddah but failed to take it over.

CNN's Diana Muriel reports.

(BEGIN VIDEOTAPE)

DIANA MURIEL, CNN CORRESPONDENT (voice-over): Smoke curls above the U.S. consulate in the Saudi port city of Jeddah Monday. According to Saudi officials, Islamic militants first attacked the heavily guarded mission with explosives, then shot their way through a side entrance in an attempt to gain control of the diplomatic compound.

Saudi officials say the ensuing gun battle with Saudi security forces left three of the attackers dead, and two others, injured in the fighting, in Saudi custody.

U.S. diplomatic sources say no Americans were killed or injured and that all consular staff were able to reach secure locations at the compound.

The building, like all U.S. diplomatic property, has been heavily fortified and guarded since a series of attacks on compounds housing non-Saudi nationals, which began last year.

Last May, 22 people were killed, including 19 westerners, by al Qaeda militants who took over a resort complex in the eastern city of Qubah (ph).

The Riyadh government has pledged to crack down on Islamic militants, arresting what it says were scores of suspects linked to al Qaeda in recent months. But security experts warn big gaps remain in the country's ability to control the problem.

WILL GEDDES, ICP GROUP INTERNATIONAL: This type of threat, particularly against somewhere like the U.S. consulate, which would be held and is held within the diplomatic sort of environs, which is better secured than probably anywhere else, shows indicative problems with the intelligence gathering of the Saudis, in so much as being able to determine where these cells are operating.

MURIEL: Around 170 people, including militants and security forces, as well as westerners, have been killed in attacks and clashes since the first suicide bombings began in Riyadh 18 months ago.

Diana Muriel, CNN, London.

(END VIDEOTAPE)

HARRIS: The alleged ringleader of prison abuse in Iraq loses two rulings in military court.

The judge in the case against Specialist Charles Graner ruled comments uttered by President Bush do not preclude Graner from receiving a fair trial. But the judge did say he might reconsider if prospective jurors seem prejudiced.

The judge also refused to let Graner's attorney call the former U.S. commander in Iraq as a witness. And the mother of Pat Tillman wants answers from the Army about the death of her son in Afghanistan. The former NFL star was killed last April in what was first reported as an ambush but later revised to friendly fire. CNN has confirmed that an Army investigation into Tillman's death was reopened last month, at least partly in response to the concerns of Mrs. Tillman.

PHILLIPS: A stolen computer has delayed the start of the Robert Blake murder trial in Los Angeles. It was taken from the home of Blake's lawyer. The judge today rescheduled opening statements for December 20. Blake is accused of killing his wife 3 1/2 years ago.

More emotional testimony on behalf of Scott Peterson. More friends are taking the stand, hoping to save him from execution. CNN's Rusty Dornin following developments in Redwood City, California -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, they're in a lunch break now. But 11 different people got on the stand this morning and basically said the same thing, that Scott Peterson is a good man. He was a great young child. He was caring. He was mature. He did things for other people. He was punctual, that sort of thing.

The only thing is, legal analysts here say that that could raise a lot of questions in jurors' minds.

(BEGIN VIDEO CLIP)

JIM HAMMER, FORMER PROSECUTOR: In the light of photographs of Laci Peterson's headless body washing up on shore and the little baby having floated dead for a few days in the bay, seeing pictures of Scott having happy Christmases and happy Thanksgivings might be offensive to the jury.

And every day they hear about the privileged background he had and that he had every break in life, to see in contrast what he did to Laci and Conner really could -- could anger the jury, and I think could actually push them towards the death penalty.

(END VIDEO CLIP)

DORNIN: The jury was listening intently, a few times taking notes. But when Scott's uncle, John Latham, started saying that they -- perhaps the jury had made a mistake and that his nephew was innocent, some of the jurors looked away. They did not appear to be very happy about that.

A couple of the other witnesses also intimated they did not believe that Scott had committed this crime.

The judge did tell the jury to expect to begin deliberations on Thursday. There will be a few witnesses into Wednesday, and then they will begin the deliberations on Thursday morning -- Kyra.

PHILLIPS: Rusty Dornin, live from Redwood City. Thanks, Rusty.

HARRIS: Kyra, we've all been there. Lost luggage can be a big pain for airline travelers.

PHILLIPS: Yes, it can. But it creates an even bigger stir when it complains explosives. Not our luggage, that is. We'll have an explanation of that just ahead on LIVE FROM.

HARRIS: More than 1,000 airline uniforms and security badges are also MIA. Details coming up.

PHILLIPS: Is Elton John giving first lady Laura Bush some competition? We'll explain. Robert Downey Jr. once again making news. And Sir Elton John.

(COMMERCIAL BREAK)

HARRIS: A lot of wind, a lot of rain. Some severe weather in Texas today.

PHILLIPS: Yes, rain all over the country, actually, from California to Georgia to Texas.

It's crazy, Jacqui.

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Explosives that vanished from a Paris airport over the weekend are still missing. How it happened has been determined. The big questions now are who and where.

CNN Jim Bittermann explains.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): French authorities say testing out sniffer dogs with real explosives packed in real passengers' luggage maybe isn't such a good idea at all. And they promise they're not going to try it again.

This after as much as 150 grams, that's five ounces of plastic explosives, went missing in just such a test. Police lost track of the bag with the explosives, which belonged to an unsuspecting passenger, and with more than 90 flights taking off at a time, it could have gone anywhere.

Flights arriving in the U.S. were searched, to no avail. This one in Los Angeles. And while officials say without a detonator, the block of explosives is harmless, governments and airline passengers who passed through Charles De Gaulle airport at the time have been told to be on the lookout for what the police involved remember as a blue rollaway bag.

French Prime Minister Jean-Pierre Raffarin's offices issued a slightly embarrassed statement, saying that "The fight against terrorism is a priority for the government." But "the way the test was handled was susceptible to making the relevant passenger run a risk in the eyes of foreign authorities when arriving in the destination country."

Police say they will discipline the officers involved in the test. Although one observer pointed out that since the explosives have not turned up, the security men may have inadvertently demonstrated how easy it can be to smuggle explosives into other countries.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

HARRIS: And news around the world now.

Canadian government officials are trying to minimize the loss of 1,100 uniforms and I.D. badges of its airport screeners. The items include badges, shirts sweaters and belts. Officials insist there is no increased threat to aviation security as a result.

At least five people have been hurt in a string of seven anti- government bombings in Spain. The largest Basque separatist group claims responsibility. The group called in warnings to authorities minutes before the explosions.

And Ukraine's prime minister says he'll win any revote of the disputed election. Opposition demonstrators have been packing the central square in Kiev for days. Victor Yanukovych says he's confident about victory. Victor Yushchenko says the election was stolen.

PHILLIPS: Is Congress ready to step up to the plate when it comes to steroids and baseball? Judy Woodruff swings for the fences, INSIDE POLITICS about 10 minutes from now.

SIBILA VARGAS, CNN CORRESPONDENT: I'm Sibila Vargas in Hollywood. Stevie wonder speaks out against rap star Eminem. And the latest Hollywood divas looking for your perfume dollars. All that when LIVE FROM returns.

(COMMERCIAL BREAK)

HARRIS: In today's entertainment news, Paris Hilton sniffs out another business opportunity. One first lady too many in Washington, D.C., last night. And Stevie Wonder gets, well, he just loses it when it comes to Eminem.

CNN's Sibila Vargas joins us with more.

Hello, Sibila.

VARGAS: Hey, Tony.

That's right. According to "Billboard" magazine, music man Stevie Wonder has some pretty harsh words for Eminem, blasting Slim Shady for targeting Michael Jackson.

(BEGIN VIDEO CLIP) (MUSIC)

(END VIDEO CLIP)

VARGAS: Wonder tells the magazine that he was really disappointed with Eminem and that, quote unquote, "kicking someone when he's down is not a good thing."

In the video Eminem makes light of recent child molestation charges against Jackson -- Tony.

HARRIS: Sibila, everybody in the rap game has a camp.

VARGAS: That's right.

HARRIS: So what is -- what's Eminem's camp saying about all this?

VARGAS: Well, we just called just a few minutes ago and Eminem's camp was just learning of the claims. But for now they say they have no comment.

Let me switch gears now. On a lighter note, Kennedy Center honors were given out yesterday to some of entertainment's biggest legends. Actors Warren Beatty, Ossie Davis and Ruby Dee, opera diva Joan Sutherland, conductor John Williams and singer Elton John were all honored with the prestigious award.

But it was actor Robert Downey Jr. who almost stole the show while introducing Sir Elton.

(BEGIN VIDEO CLIP)

ROBERT DOWNEY JR., ACTOR: The first one that comes to mind is, of course, genius. And second on a more personal note is, lifesaver. And I've got a third thought. The third thought is maybe, see how this feels, the other first lady? I don't know.

(END VIDEO CLIP)

VARGAS: Needless to say, the other first lady comment played to mixed reviews. But overall, it was a star-studded night with Hollywood and Washington's elite.

The Kennedy Center honors will be broadcast December 21 on CBS.

Well, the sweet smell of success is getting even sweeter for some of Hollywood's most loved divas. And don't be surprised if your daughter wants to take a whiff this holiday season.

First, it was Jennifer Lopez with not one, but two different perfumes to tease the masses. Then Britney Spears found out it pays to be "Curious," as she launched her own fragrance.

Now the latest diva to jump onto the perfume bandwagon, Paris Hilton. The perfume, simply called Paris Hilton, is said to be a mixture of musk, peach, mimosa and pheromones. Recommended retail price: $49 for a 3.4 ounce bottle.

And if that wasn't enough, Paris also has future plans to launch a clothing line. So Tony, she's 23 and already an empire.

HARRIS: You know, I was going to ask you if that stuff really sells. But it must make some money. They keep coming out with these lines, seemingly, what, every week or so?

VARGAS: Very profitable. Hey, you know, I'm going to have my own line, I guess, sometime.

HARRIS: Wow.

VARGAS: What am I going to call it, though? Hmm. Kyra, ay suggestions?

PHILLIPS: Believe me, I'd buy your stuff. I would. You're the only one. As for Paris, yes.

VARGAS: Thank you, Kyra. You're so sweet.

PHILLIPS: You don't have to self-promote yourself. You've got -- you've got everything to back yourself up.

HARRIS: There you go.

VARGAS: You, too.

PHILLIPS: All right, thanks, Sibila.

Well, price increases for prescription drugs slowed in the last three months, but is that part of a new trend?

HARRIS: Rhonda Schaffler joins us now from the New York Stock Exchange with the answer -- Rhonda.

(STOCK REPORT)

PHILLIPS: We'll see you tomorrow. Thanks, Rhonda.

HARRIS: INSIDE POLITICS is just ahead.

PHILLIPS: Judy joins us now with a preview.

Hi, Judy.

WOODRUFF: Hi, Kyra. Thanks to you and Tony.

In our "Security Watch" today, intelligence reform. The president is pushing for it, but some are holding out. The clash on Capitol Hill, ahead.

And was it fair, or was there fraud? Ohio certified its vote today. But the fight, far from over. We'll tell you why in a live report from Columbus.

INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

HARRIS: I'm Tony Harris at the CNN Center. INSIDE POLITICS is next after a look at stories now in the news.

A compromise could be near on the long-stalled intelligence reform bill. We're told the decision could be just hours away. We'll go live to Capitol Hill in a moment.

Open for business. CNN has learned that the National Counter- Terrorism Center has officially opened in northern Virginia. The state-of-the-art agency was created to help pool resources and intelligence on terrorism. More details are ahead on INSIDE POLITICS.

Americans in Saudi Arabia are being urged to remain vigilant after suspected Islamic militants stormed the U.S. consulate in Jeddah today. Eight people were killed, including three of the attackers and a gun battle ending a three-hour standoff. No Americans were killed or seriously injured in the attack.

Now, Judy Woodruff's INSIDE POLITICS.

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Aired December 6, 2004 - 14:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: We're seeing a little compromise in high stakes on Capitol Hill right now. The lame duck Congress is under intense pressure to pass intelligence reform. We have a live report coming up.
Thousands of Americans in Saudi Arabia are told to take extra security precautions after a brazen terrorist attack on the U.S. consulate in Jeddah. Eight people including three of the gunmen are dead. We'll have details straight ahead.

Outgoing Health Secretary Tommy Thompson is changing his tune about the safety of the nation's food supply days after he warned it could be a terrorist target. He now says America is more prepared than ever to meet that potential threat. Thompson praised implementation of an FDA rule that requires manufacturers to keep a paper trail showing where they got and send food products.

TONY HARRIS, CO-HOST: And today, President Bush is sticking to his guns, that despite all the violence plaguing Iraq, the Iraqi elections will happen on schedule. And on another pressing matter, Mr. Bush issues another call to Congress to pass intelligence reform before it leaves town.

CNN's Elaine Quijano is standing by at the White House with more for us. Hi, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Tony.

That's right. Administration officials continue to say that they are hopeful the intel reform bill can get passed this week. They say they believe it can be.

And over the weekend Vice President Dick Cheney, as well as White House chief of staff Andy Card reached out by phone to congressional leaders on this issue.

While the sticking points remain the immigration concerns, as well as chain of command concerns, we're told that discussions are continuing to center now on the chain of command issues.

Now, last week we've been told that the White House was working on a letter, sending a letter to lawmakers on Capitol Hill, laying out essentially the president's position on intel reform. At last word that letter had not gone out yet, and White House officials say that's because there have been ongoing discussions taking place.

In the meantime, President Bush again today reaffirmed his commitment to the legislation.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I certainly hope the bill gets to my desk soon. I believe we've addressed the concerns of by far the majority of members of both the House and the Senate. As we speak we're working with the key members to address concerns.

I call upon the Congress to pass the intelligence bill. It's a good piece of legislation. It is a necessary piece of legislation. It's a piece of legislation that is important for the security of our country.

(END VIDEO CLIP)

QUIJANO: Now, Mr. Bush made his comments at a morning meeting with Iraq's interim president, Ghazi al-Yawar.

During those discussions, both leaders made clear that on the issue of Iraq, they do not want the elections in that country postponed, saying that would hand the insurgents there a victory. Both men saying despite concerns about violence in that country, they want the elections to proceed as scheduled on January 30.

Now the president today had a second meeting, this one with the king of Jordan, King Abdullah. The two leaders discussed Iraq, as well. Also the Jordanian economy, and the Israeli/Palestinian conflict.

Now, that issue continues to be a concern for the White House, as well. Mr. Bush has made it known that in his second term, he very much wants to see some progress on that front. The president continues to push his vision of a two-state solution of an Israeli state and a Palestinian state coexisting side by side in peace -- Tony.

HARRIS: Elaine Quijano, live from the White House. Elaine, thank you.

KYRA PHILLIPS, CO-HOST: Without a hint of fanfare, a new weapon in the war on terrorism is up and running as of today. Our national security correspondent, David Ensor standing by live in Washington with the new details -- David.

DAVID ENSOR, CNN CORRESPONDENT: Kyra, that's right.

CNN has learned that the National Counter-Terrorism Center formally opens for business Monday, though U.S. government spokesmen are declining comment.

Congressional and executive branch sources say the new agency, which was created under an executive order from President Bush, comes into existence today in a low-key way at a new state-of-the-art facility in northern Virginia.

This video here is one that the U.S. government put out the middle of last year to show what that facility would look like when it's finished. We have not been allowed in to the actual facility yet. So this is just a kind of a peek at how it is expected to look.

The agency replaces the CIA's Terrorist Threat Integration Center, which was founded after the 9/11 attacks to pull all intelligence the U.S. government has on terrorists together into one place, so that analysts can try to connect the dots, that famous phrase.

Under the intelligence reform package that could be approved this week on Capitol Hill, this new agency, the NCTC, would be given additional clout, according to sources.

A senior CIA official, John Brennan, who was director of TTIC, has been made the acting director of this new agency, sources say. Under the new bill, if Mr. Brendan gets the job, he'll be appointed by Mr. Bush, the incumbent presidential appointment, subject to Senate confirmation. He'll be reporting directly to the president on general terrorist information. He'll report, however, to the new director of national intelligence on budget and personnel matters -- Kyra.

PHILLIPS: OK. I'm taking notes here as I'm watching all this, trying to piece it all together.

So we're going to have a new director of national intelligence. That's still yet to be named. Then you're going to have Brennan, who's going to run this new counter-terrorism center. And then you're going to try and tie in the new homeland security secretary and the CIA and the FBI and all the other intelligence.

Do I have it all straight?

ENSOR: It's become yet more alphabet soup, you are exactly right. But this is a very key agency. It's going to have additional clout if the bill becomes law. The president, as I said, by executive order. It's being created today.

Don't know whether Mr. Brennan will get the job or not permanently, but he's the acting director. And the key is to stop the next 9/11, to get the intelligence from the FBI, the CIA, foreign intelligence agencies, anyone who has it, that the U.S. Government can get it from, and put it all together, make sure they're not missing anything.

PHILLIPS: That will be interesting to see how it all pieces together. David Ensor, thank you so much.

Well, U.S. officials tell CNN al Qaeda is suspected of a deadly attack on a U.S. consulate in Saudi Arabia. Five gunmen managed to blast into the compound in Jeddah but failed to take it over.

CNN's Diana Muriel reports.

(BEGIN VIDEOTAPE)

DIANA MURIEL, CNN CORRESPONDENT (voice-over): Smoke curls above the U.S. consulate in the Saudi port city of Jeddah Monday. According to Saudi officials, Islamic militants first attacked the heavily guarded mission with explosives, then shot their way through a side entrance in an attempt to gain control of the diplomatic compound.

Saudi officials say the ensuing gun battle with Saudi security forces left three of the attackers dead, and two others, injured in the fighting, in Saudi custody.

U.S. diplomatic sources say no Americans were killed or injured and that all consular staff were able to reach secure locations at the compound.

The building, like all U.S. diplomatic property, has been heavily fortified and guarded since a series of attacks on compounds housing non-Saudi nationals, which began last year.

Last May, 22 people were killed, including 19 westerners, by al Qaeda militants who took over a resort complex in the eastern city of Qubah (ph).

The Riyadh government has pledged to crack down on Islamic militants, arresting what it says were scores of suspects linked to al Qaeda in recent months. But security experts warn big gaps remain in the country's ability to control the problem.

WILL GEDDES, ICP GROUP INTERNATIONAL: This type of threat, particularly against somewhere like the U.S. consulate, which would be held and is held within the diplomatic sort of environs, which is better secured than probably anywhere else, shows indicative problems with the intelligence gathering of the Saudis, in so much as being able to determine where these cells are operating.

MURIEL: Around 170 people, including militants and security forces, as well as westerners, have been killed in attacks and clashes since the first suicide bombings began in Riyadh 18 months ago.

Diana Muriel, CNN, London.

(END VIDEOTAPE)

HARRIS: The alleged ringleader of prison abuse in Iraq loses two rulings in military court.

The judge in the case against Specialist Charles Graner ruled comments uttered by President Bush do not preclude Graner from receiving a fair trial. But the judge did say he might reconsider if prospective jurors seem prejudiced.

The judge also refused to let Graner's attorney call the former U.S. commander in Iraq as a witness. And the mother of Pat Tillman wants answers from the Army about the death of her son in Afghanistan. The former NFL star was killed last April in what was first reported as an ambush but later revised to friendly fire. CNN has confirmed that an Army investigation into Tillman's death was reopened last month, at least partly in response to the concerns of Mrs. Tillman.

PHILLIPS: A stolen computer has delayed the start of the Robert Blake murder trial in Los Angeles. It was taken from the home of Blake's lawyer. The judge today rescheduled opening statements for December 20. Blake is accused of killing his wife 3 1/2 years ago.

More emotional testimony on behalf of Scott Peterson. More friends are taking the stand, hoping to save him from execution. CNN's Rusty Dornin following developments in Redwood City, California -- Rusty.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Kyra, they're in a lunch break now. But 11 different people got on the stand this morning and basically said the same thing, that Scott Peterson is a good man. He was a great young child. He was caring. He was mature. He did things for other people. He was punctual, that sort of thing.

The only thing is, legal analysts here say that that could raise a lot of questions in jurors' minds.

(BEGIN VIDEO CLIP)

JIM HAMMER, FORMER PROSECUTOR: In the light of photographs of Laci Peterson's headless body washing up on shore and the little baby having floated dead for a few days in the bay, seeing pictures of Scott having happy Christmases and happy Thanksgivings might be offensive to the jury.

And every day they hear about the privileged background he had and that he had every break in life, to see in contrast what he did to Laci and Conner really could -- could anger the jury, and I think could actually push them towards the death penalty.

(END VIDEO CLIP)

DORNIN: The jury was listening intently, a few times taking notes. But when Scott's uncle, John Latham, started saying that they -- perhaps the jury had made a mistake and that his nephew was innocent, some of the jurors looked away. They did not appear to be very happy about that.

A couple of the other witnesses also intimated they did not believe that Scott had committed this crime.

The judge did tell the jury to expect to begin deliberations on Thursday. There will be a few witnesses into Wednesday, and then they will begin the deliberations on Thursday morning -- Kyra.

PHILLIPS: Rusty Dornin, live from Redwood City. Thanks, Rusty.

HARRIS: Kyra, we've all been there. Lost luggage can be a big pain for airline travelers.

PHILLIPS: Yes, it can. But it creates an even bigger stir when it complains explosives. Not our luggage, that is. We'll have an explanation of that just ahead on LIVE FROM.

HARRIS: More than 1,000 airline uniforms and security badges are also MIA. Details coming up.

PHILLIPS: Is Elton John giving first lady Laura Bush some competition? We'll explain. Robert Downey Jr. once again making news. And Sir Elton John.

(COMMERCIAL BREAK)

HARRIS: A lot of wind, a lot of rain. Some severe weather in Texas today.

PHILLIPS: Yes, rain all over the country, actually, from California to Georgia to Texas.

It's crazy, Jacqui.

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: Explosives that vanished from a Paris airport over the weekend are still missing. How it happened has been determined. The big questions now are who and where.

CNN Jim Bittermann explains.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): French authorities say testing out sniffer dogs with real explosives packed in real passengers' luggage maybe isn't such a good idea at all. And they promise they're not going to try it again.

This after as much as 150 grams, that's five ounces of plastic explosives, went missing in just such a test. Police lost track of the bag with the explosives, which belonged to an unsuspecting passenger, and with more than 90 flights taking off at a time, it could have gone anywhere.

Flights arriving in the U.S. were searched, to no avail. This one in Los Angeles. And while officials say without a detonator, the block of explosives is harmless, governments and airline passengers who passed through Charles De Gaulle airport at the time have been told to be on the lookout for what the police involved remember as a blue rollaway bag.

French Prime Minister Jean-Pierre Raffarin's offices issued a slightly embarrassed statement, saying that "The fight against terrorism is a priority for the government." But "the way the test was handled was susceptible to making the relevant passenger run a risk in the eyes of foreign authorities when arriving in the destination country."

Police say they will discipline the officers involved in the test. Although one observer pointed out that since the explosives have not turned up, the security men may have inadvertently demonstrated how easy it can be to smuggle explosives into other countries.

Jim Bittermann, CNN, Paris.

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HARRIS: And news around the world now.

Canadian government officials are trying to minimize the loss of 1,100 uniforms and I.D. badges of its airport screeners. The items include badges, shirts sweaters and belts. Officials insist there is no increased threat to aviation security as a result.

At least five people have been hurt in a string of seven anti- government bombings in Spain. The largest Basque separatist group claims responsibility. The group called in warnings to authorities minutes before the explosions.

And Ukraine's prime minister says he'll win any revote of the disputed election. Opposition demonstrators have been packing the central square in Kiev for days. Victor Yanukovych says he's confident about victory. Victor Yushchenko says the election was stolen.

PHILLIPS: Is Congress ready to step up to the plate when it comes to steroids and baseball? Judy Woodruff swings for the fences, INSIDE POLITICS about 10 minutes from now.

SIBILA VARGAS, CNN CORRESPONDENT: I'm Sibila Vargas in Hollywood. Stevie wonder speaks out against rap star Eminem. And the latest Hollywood divas looking for your perfume dollars. All that when LIVE FROM returns.

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HARRIS: In today's entertainment news, Paris Hilton sniffs out another business opportunity. One first lady too many in Washington, D.C., last night. And Stevie Wonder gets, well, he just loses it when it comes to Eminem.

CNN's Sibila Vargas joins us with more.

Hello, Sibila.

VARGAS: Hey, Tony.

That's right. According to "Billboard" magazine, music man Stevie Wonder has some pretty harsh words for Eminem, blasting Slim Shady for targeting Michael Jackson.

(BEGIN VIDEO CLIP) (MUSIC)

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VARGAS: Wonder tells the magazine that he was really disappointed with Eminem and that, quote unquote, "kicking someone when he's down is not a good thing."

In the video Eminem makes light of recent child molestation charges against Jackson -- Tony.

HARRIS: Sibila, everybody in the rap game has a camp.

VARGAS: That's right.

HARRIS: So what is -- what's Eminem's camp saying about all this?

VARGAS: Well, we just called just a few minutes ago and Eminem's camp was just learning of the claims. But for now they say they have no comment.

Let me switch gears now. On a lighter note, Kennedy Center honors were given out yesterday to some of entertainment's biggest legends. Actors Warren Beatty, Ossie Davis and Ruby Dee, opera diva Joan Sutherland, conductor John Williams and singer Elton John were all honored with the prestigious award.

But it was actor Robert Downey Jr. who almost stole the show while introducing Sir Elton.

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ROBERT DOWNEY JR., ACTOR: The first one that comes to mind is, of course, genius. And second on a more personal note is, lifesaver. And I've got a third thought. The third thought is maybe, see how this feels, the other first lady? I don't know.

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VARGAS: Needless to say, the other first lady comment played to mixed reviews. But overall, it was a star-studded night with Hollywood and Washington's elite.

The Kennedy Center honors will be broadcast December 21 on CBS.

Well, the sweet smell of success is getting even sweeter for some of Hollywood's most loved divas. And don't be surprised if your daughter wants to take a whiff this holiday season.

First, it was Jennifer Lopez with not one, but two different perfumes to tease the masses. Then Britney Spears found out it pays to be "Curious," as she launched her own fragrance.

Now the latest diva to jump onto the perfume bandwagon, Paris Hilton. The perfume, simply called Paris Hilton, is said to be a mixture of musk, peach, mimosa and pheromones. Recommended retail price: $49 for a 3.4 ounce bottle.

And if that wasn't enough, Paris also has future plans to launch a clothing line. So Tony, she's 23 and already an empire.

HARRIS: You know, I was going to ask you if that stuff really sells. But it must make some money. They keep coming out with these lines, seemingly, what, every week or so?

VARGAS: Very profitable. Hey, you know, I'm going to have my own line, I guess, sometime.

HARRIS: Wow.

VARGAS: What am I going to call it, though? Hmm. Kyra, ay suggestions?

PHILLIPS: Believe me, I'd buy your stuff. I would. You're the only one. As for Paris, yes.

VARGAS: Thank you, Kyra. You're so sweet.

PHILLIPS: You don't have to self-promote yourself. You've got -- you've got everything to back yourself up.

HARRIS: There you go.

VARGAS: You, too.

PHILLIPS: All right, thanks, Sibila.

Well, price increases for prescription drugs slowed in the last three months, but is that part of a new trend?

HARRIS: Rhonda Schaffler joins us now from the New York Stock Exchange with the answer -- Rhonda.

(STOCK REPORT)

PHILLIPS: We'll see you tomorrow. Thanks, Rhonda.

HARRIS: INSIDE POLITICS is just ahead.

PHILLIPS: Judy joins us now with a preview.

Hi, Judy.

WOODRUFF: Hi, Kyra. Thanks to you and Tony.

In our "Security Watch" today, intelligence reform. The president is pushing for it, but some are holding out. The clash on Capitol Hill, ahead.

And was it fair, or was there fraud? Ohio certified its vote today. But the fight, far from over. We'll tell you why in a live report from Columbus.

INSIDE POLITICS begins in just a moment.

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HARRIS: I'm Tony Harris at the CNN Center. INSIDE POLITICS is next after a look at stories now in the news.

A compromise could be near on the long-stalled intelligence reform bill. We're told the decision could be just hours away. We'll go live to Capitol Hill in a moment.

Open for business. CNN has learned that the National Counter- Terrorism Center has officially opened in northern Virginia. The state-of-the-art agency was created to help pool resources and intelligence on terrorism. More details are ahead on INSIDE POLITICS.

Americans in Saudi Arabia are being urged to remain vigilant after suspected Islamic militants stormed the U.S. consulate in Jeddah today. Eight people were killed, including three of the attackers and a gun battle ending a three-hour standoff. No Americans were killed or seriously injured in the attack.

Now, Judy Woodruff's INSIDE POLITICS.

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