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Intel Overhaul Poised to Clear Congress; Chicago 5-Alarm Fire

Aired December 07, 2004 - 14:00   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: High-rise fire, high-risk situation. Amazingly, everyone makes it out live. We expect a live news conference from the mayor of Chicago any moment now. We'll bring that to you.
TONY HARRIS, CO-HOST: Delays and deliberations over. Now intelligence reform is apparently all but a done deal. We're live from Capitol Hill with the latest.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have dealt the enemy a severe blow. The terrorist Zarqawi has lost his main sanctuary in Iraq. Ba'athist insurgents have lost.

(END VIDEO CLIP)

PHILLIPS: Now, is the blow going to Iraqi insurgents going to be enough? President Bush congratulates the troops, and a CIA official raises a security alarm in Iraq.

HARRIS: And live this hour, Leonardo DiCaprio. The international superstar comes in for a landing for the LIVE FROM interview.

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

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

We begin this hour with a new day for the CIA and the NSA and the NRO and the rest of the alphabet soup of U.S. intelligence agencies soon to be made over in a sprawling measure spawned by the failures of 9/11. After one last rewrite, an intel overhaul is poised to clear the House of Representatives and then the Senate. And then the 10th Congress will fade into history.

CNN's Ed Henry is on hand for the final sprint of the lame duck session.

Hi, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Kyra. Let me add one more acronym to Washington's alphabet soup that you mentioned.

PHILLIPS: Man.

HENRY: DNI, for director of national intelligence. There's actually a funny story behind how that happened and came to be in this legislation.

At the beginning of this intelligence reform debate, it was beinged called the national intelligence director. But the problem is the acronym would be NID, and Senator Susan Collins, the lead Senate negotiator, told CNN that at one point at a late-night session she said that a NID sounded like an insect to her and she did not think that would be -- would fit the title of someone so important now in this sweeping legislation.

So rather than NID, it's now DNI. So now you know. That's how they decide these things behind closed doors.

But in all seriousness, they are talking a lot today on Capitol Hill about how this is a monumental day with this reform. In fact, several senators and supporters of the legislation, like Bob Graham, Joe Lieberman, have noted that it's December 7, the anniversary of Pearl Harbor. And they're saying that they think this reform -- or legislation could help prevent another Pearl Harbor, another 9/11, another terror attack here on American soil.

That's a very bold statement, obviously. But is as you remember, the 9/11 Commission urged Congress to create a new director of national intelligence to help prevent such an attack. And, in fact, Democratic Congresswoman Jane Harman said that in fighting the war on terror, intelligence officials now have the tools they need.

(BEGIN VIDEO CLIP)

REP. JANE HARMAN (D), INTELLIGENCE COMMITTEE: Good people need better tools. Here come the tools to help good people succeed.

If those people weren't out there, we would not have the successes that we now have around the world. We need more successes and fewer failures around the world, and I believe that those people in this new organization will be responsible for those successes.

(END VIDEO CLIP)

HENRY: Now, the lead Senate negotiator who I mentioned, Susan Collins, earlier today said this was a big victory for President Bush. He was personally involved in pushing this through Congress.

They're still awaiting votes in the House and Senate, of course. But Susan Collins was pointing out it's a victory for the president. But that victory is coming with a little bit of difficulty also for the president and Republican leaders here on the Hill.

There was a long meeting this morning among House Republicans. Lawmakers coming out of that meeting tell is us there was deep division over the fact that the intelligence immigration provisions that were introduced by Jim Sensenbrenner, the Republican congressman, and stripped out, kept out of this legislation, angering dozens of conservatives who stood up at this meeting, who were complaining about it.

And, in fact, when Congressman Sensenbrenner spoke out about how these provisions were taken out, we're told there was a long bit of applause from his fellow Republicans. So expect a lot of conservatives to end up opposing this legislation when it hits the House floor. In fact, Congressman Sensenbrenner earlier told CNN he thinks the job is not complete.

(BEGIN VIDEO CLIP)

REP. JAMES SENSENBRENNER (R), JUDICIARY CHAIRMAN: I think the compromise is incomplete, but they do have the signatures to bring the bill to the floor. And it will pass.

So the fight now is to make sure that we get a vote early next year on driver's licenses and asylum reform in order to complete the job. I think Congress's job is to prevent a terrorist attack from happening rather than managing the consequences of it. And good intelligence is useless without good homeland security.

(END VIDEO CLIP)

HENRY: Now, other lawmakers, like House Intelligence Chairman Peter Hoekstra, they're pointing out that this was the best deal that congressional leaders could get at this time. And they're vowing that they will come back and try to complete that job in January and deal with those immigration provisions -- Kyra.

PHILLIPS: All right. NSA, NRO and now DNI. You're giving me a lot of homework, Ed Henry. Thank you very much -- Tony.

HENRY: Thank you.

HARRIS: President Bush is spending Pearl Harbor day at a Marine base that's seen its share of infamy in Iraq. California's Camp Pendleton is home to the 1st Marine Expeditionary Force, some 21,000 members of which are in the Persian Gulf as we speak. Some 200 Camp Pendleton Marines have died in the war in Iraq, and the commander in chief says their sacrifice, especially in the recent siege of Falluja, was not in vain.

(BEGIN VIDEO CLIP)

BUSH: We have dealt the enemy a severe blow. The terrorist Zarqawi has lost his main sanctuary in Iraq. The Ba'athist insurgents have lost one of their main bases of operation.

We seized tons of weapons and shut down terrorist bomb-making factories, killed more than 2,000 enemy fighters, and captured thousands more. The enemies of freedom in Iraq have been wounded, but they're not yet defeated. They'll keep on fighting. And so will the Marine Corps.

(END VIDEO CLIP)

HARRIS: Pendleton has one of the highest casualty rates of any base with forces in Iraq.

The CIA station chief in Baghdad sounds a warning about security across Iraq. Details of a classified cable he wrote last month are now being leaked to the press. And those who have seen it say the cable gives a bleak assessment and warns of worst to come if measures are not taken to improve security and speed up economic development.

More insurgent violence on the ground in Iraq today. Two churches in the northern city of Mosul were bombed. Three people were wounded in one of those attacks. Also today, a U.S. soldier was killed by small arms fire in Baghdad, and a Marine died in a vehicle accident west of Baghdad.

PHILLIPS: Some three years now since United States troops led the overthrow of the Taliban, Afghanistan inaugurates an elected president. Vice President Dick Cheney and Defense Secretary Donald Rumsfeld were in attendance in Kabul at the official inauguration of Hamid Karzai.

The American-backed leader won a landslide victory back in October. He says his people are indebted to the United States.

HARRIS: America's flu vaccine supply is getting a much needed shot in the arm. Health and Human Services Secretary Tommy Thompson says an additional 1.2 million doses will soon be available to those considered high risk. They're being manufactured by GlaxoSmithKline at the company's facility in Germany. U.S. investigators have been there and say the vaccines are safe, but because the product wasn't approved in the United States, there's a caveat.

(BEGIN VIDEO CLIP)

LESTER CRAWFORD, ACTING FDA COMMISSIONER: The product that we're announcing today is not approved in the U.S. So we're letting it in under an IND, or an investigational application.

To the public, the main thing this means is that it will require their consent. So when an individual gets a dose of this particular vaccine, they will be required to sign a consent form.

(END VIDEO CLIP)

HARRIS: Besides the new doses already approved, the company has agreed to make 2.8 million more for the season.

PHILLIPS: It was almost impossible to breathe. That's how one man described his escape from last night's fire in a Chicago high- rise. More than three dozen people were taken to the hospital. Most of them firefighters.

The latest now from CNN's Jonathan Freed on the scene throughout the night.

(BEGIN VIDEOTAPE)

JONATHAN FREED, CNN CORRESPONDENT: Word from the Chicago Fire Department is that everything worked the way it was supposed to last night. People followed instructions and remembered their fire drill procedures at the LaSalle Bank building which is in the heart of Chicago's financial district here in the area of town known as The Loop.

Now, the fire department responded quickly and in force, it says, with one-third of the city's firefighters on the scene. And the department says that all of that added up and saved lives. And one person whose life was saved, Sarah Nadelhoffer, told CNN about her experience earlier today.

SARAH NADELHOFFER, SURVIVED FIRE: Our windows open up in our office. So I opened up our -- my window and I started breathing out my window. And I stayed on the phone with 911 and kept asking if they knew where we were and they were coming for us. And they kept reassuring us.

And then as the time went on, it was about a half an hour later. I was with my partners in one office, and we had the window open, and we were breathing out the window and calling 911.

FREED: The fire department says that the reason the fire burned so long, five and a half hours last night, was due to the maple hardwood floors in the 1930s building. And the department says that when floors like that get ignited, they are simply tough to extinguish.

Now, among the three dozen injured were 22 firefighters. And none of the injuries were life-threatening.

In Chicago, Jonathan Freed, CNN.

Back to you.

(END VIDEOTAPE)

PHILLIPS: Let's go straight to Chicago now. A live press conference. Talking right now the fire chef of Chicago. Let's listen in.

CORTEZ TROTTER, CHICAGO FIRE COMMISSIONER: ... to just leave that to the investigating team.

So again, I would like to just commend the men and women of the Chicago Fire Department, our suburban neighbors that responded and, most of all, the people that were in that building that helped out tremendously in terms of what they did prior to our arrival.

This building had unlocking doors. This building had a life safety system. This is a category 3 building, so some of the things that they had in place were not required, but they took the extra step to make a difference. And for us, it made all of the difference in the world. And I appreciate them for it, and I would encourage other buildings to follow in their footsteps of better protecting or even better protecting the people that live, work and visit their buildings as we in the Chicago Fire Department continue to strive to even better protect the people of Chicago.

Leaning forward in the next 48 hours, as we made a commitment some months ago, I do intend to conduct a review of this fire. I believe that although things seemed to work well for us, I still believe that we can always do better. And I think that every fire is different, and we would be remiss if we did not pause and take the opportunity to review our actions in detail and see if there are areas in which we can improve upon that.

Thank you.

UNIDENTIFIED MALE: The first call came into 911 at 6:29 and eight seconds last -- yesterday evening.

PHILLIPS: You were just listening to Cortez Trotter, the Chicago fire commissioner, updating reporters on that fire that raged for more than five hours in a downtown Chicago high-rise office building overnight. At least 37 people were hurt, 22 of those 37 firefighters.

He's saying that in the next 48 hours there will be a massive review of this fire. It seems that all systems worked well from 911 systems to the fire drills. He felt that that's what ultimately saved lives, in addition to the condition of that building. So we'll continue to follow what comes out of that injnvestigation, of course.

Also, straight ahead, will the United Nations, Kofi Annan bow to pressure for him to step down amid a scandal involving the Oil-for- Food program in Iraq? The U.N. secretary speaks about it publicly.

Also ahead, the virtual battlefield. A high-tech approach to helping soldiers stay alive when the real action starts.

And later, what does former President Clinton have in common with the Black Eyed Peas and Kanye West? Here's a hint: they're all making some extra space on their mantles.

(COMMERCIAL BREAK)

HARRIS: And now more food for thought in the Oil-for-Food flap and Kofi Annan's culpability or lack of it. This from a New Jersey congressman and member of the permanent House Subcommittee on Investigations...

(BEGIN VIDEO CLIP)

REP. SCOTT GARRETT (R), INVESTIGATIONS SUBCOMMITTEE: To me, the question should not be whether Kofi Annan should remain in charge. To me, the larger question is whether he should be in jail at this point in time. Literally, just going back on your comment, if this were to occur in any corporate scandal in the United States, you would be hearing cries from both sides of the aisle at this point in time for his immediate resignation and also for his arrest.

(END VIDEO CLIP)

HARRIS: Hot rhetoric. Well, today, we have some reaction, albeit diplomatic, to the increasingly inflammatory rhetoric. And CNN's Richard Roth fills us in from U.N. headquarters -- Richard.

RICHARD ROTH, CNN UNITED NATIONS CORRESPONDENT: Well, I don't see any police behind me there on 1st Avenue in New York, but certainly Secretary-General Annan knows that the pressure it on. You can see it many times now on his face and his hesitancy to appear before cameras, even on subjects such as Sudan. However, today, in his first public comments on television, Annan did stop for a moment and was asked when is he going to respond to the calls from the Congress about resigning.

(BEGIN VIDEO CLIP)

KOFI ANNAN, U.N. SECRETARY-GENERAL: I have quite a lot of work to do, and I'm carrying on with my work. We have a major agenda next year and the year ahead. We're trying to reform this organization, and we'll carry on.

(END VIDEO CLIP)

ROTH: And that's really been the response from the U.N. secretary-general. He still has a lot of work to do, and he is giving no indications that he wants to resign. And many supporters, all the countries here, are backing him, saying, "Where's the proof? How can you say somebody should resign before the investigation, six of them that are being done, are completed?"

Friday night at a roast, I can tell you, he did say, "I'm resigned to having a good time."

Much of the increased calls for his resignation deal with his son, 29-year-old son Kojo, who is not too visible, lives in Nigeria, between Nigeria and Britain. This is Kojo Annan in the middle there, 29-year-old son, at the Nobel Peace Prize ceremony for his father, December 2001.

Kojo Annan has been reported to have been involved in business deals and was on the payroll of a Swiss company that is at the center of the Oil-for-Food investigation. Kojo, son, along with anyone connected to Oil-for-Food, is being investigated. John Danforth, the U.S. ambassador to the U.N., today again was cautious. Washington refusing to go all out and saying it backs Kofi Annan while also at the same time not joining in the calls for resignation.

(BEGIN VIDEO CLIP)

JOHN DANFORTH, U.S. AMBASSADOR TO U.N.: You can't conduct a fair and full investigation if before it even takes place or before it's completed you're already proclaiming that various people are involved or not involved, in any way prejudging the result.

(END VIDEO CLIP)

ROTH: Kofi Annan appears before the generally assembly tomorrow to give a report on reforming the organization. Not likely the topic of resignation will come up. However, he's having a lunch right now with the Security Council. It's a monthly lunch, no doubt over hors d'oeuvres and appetizers.

It's going to be discussed. It's the big story here still.

Back to you, Tony.

HARRIS: Richard, just a quick question. I see all the smoke. I'm still wondering where the fire is.

Is it in the documents that are still being withheld? Where is the fire here?

ROTH: The fire is coming from congressional critics of Annan and the U.N. who are slowly leaking out information from their own investigations. Now, this may have come out eventually, but they are being doled out as they receive it.

So the fire is coming from those who believe it is wrong for Annan to still be here at the U.N. and, in effect, presiding over how Paul Voelcker, the U.N.-approved panel, how he conducts his investigation. Even though Voelcker says he's his own man.

They think, like a regular company, if there's smoke, as you say, the person at the top should step aside. Also, how -- they question how could he not know what his son may or not been up to. We've had a lot of scandals in the past, though, with political leaders and relatives who went off the reservation, so to speak.

It's still early, though, for a lot of people. They would like to see some proof.

HARRIS: Yes. Richard Roth at the U.N. Richard, thank you -- Kyra.

PHILLIPS: Other news "Around the World" now.

A happy homecoming for a Cold War deserter, greeted by his Japanese wife and their two children. Former Army Sergeant Charles Jenkins arrived on Japan's Sato (ph) Island today where he plans to live out what he calls the last chapter of his life. He just finished serving 30 days in jail for his 1965 desertion.

In the Middle East, a jailed presidential prospect may quit the rice. Marwan Barghouti says that he may pull out of the Palestinian election to avoid splitting the party, according to an Israeli-Arab lawmaker who just spoke with him from jail. Polls show Barghouti running neck and neck with former prime minister and fatah rival Mahmoud Abbas.

Albuquerque, New Mexico, let's forget politics, hey? A T-shirt company there has put together a "Go Canadian" travel package for American who's don't want to be hassled during trips overseas. Its creator says it's not meant to be un-American, just a way for Yankee travelers to avoid debates with locals.

We're going to take a quick break. More LIVE FROM right after this. (COMMERCIAL BREAK)

HARRIS: Look here. The nominations are in for the music industry's most coveted honors. And that Kanye West that the kids seem to like so much is going to be tough to beat.

CNN's entertainment reporter Sibila Vargas joins us now with details on the Grammy nominees -- Sibila.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: That's right, Tony. It's music's big day. The 47th annual Grammy nominations have been announced.

Last year, urban music dominated the scene. And this year was no different. Newcomer Kanye West racked up the most nominations, 10 in all, including best new artist, best rap album, and the much coveted album of the year.

(BEGIN VIDEO CLIP)

KANYE WEST, MUSICIAN: You know, when I was trying to get my record deal, no one would -- no one would sign me. I got -- like, it was stuff that was on the table and then they pulled out at the very last minute and it felt like my life was just in shambles. And to turn around and be standing here with all this press around me, it's like a dream come true. And it's really unbelievable.

(END VIDEO CLIP)

VARGAS: Head-to-head with five-time Grammy winner Alicia Keys, as well as Usher, who were both nominated for eight statues.

The late, great Ray Charles will also compete for album of the year. His posthumous release "Genius Loves Company" was nominated for seven Grammys.

Wrapping up the best album category are rockers Green Day. Their album, "American Idiot," was also tapped for best rock album and record of the year -- Tony.

HARRIS: All right. Now, Sibila, looking back at the American Music Awards, Kanye West had some pretty strong words when he lost the best -- what was it, best new artist prize to the country singer, right?

VARGAS: That's right, to Gretchen Wilson. West and Wilson will definitely battle it out again for best new artist category. But no need for boxing gloves. I spoke to both artists about that incident right after today's announcement, and for them it's been cleared up and it's just water under the bridge.

(BEGIN VIDEO CLIP)

WEST: You know, I apologize for acting like really emotional at the other show. You know, I worked really, really hard on this album.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

GRETCHEN WILSON, MUSICIAN: I was hoping on the way here this morning that we'd be able to get together and say a few words to each other before we stood up there together. And we did.

And he's -- he's explained himself to me, and it makes perfect sense to me. And I don't think he ever meant to say anything negative toward me directly. And, you know, we're -- I think we're good. We're over it, we're fine, we're moving forward.

(END VIDEO CLIP)

VARGAS: By the way, Gretchen Wilson had a nice showing today as well, picking up four nominations in all, including one for country album of the year. So it should be a great night for all of music's favorite stars when the 47th annual Grammy Awards air February 13 on CBS.

Nice to know that they're letting bygones be bygones.

HARRIS: That's right. That's right. That's a good -- that's a lot of fun. All right. Sibila, thank you.

VARGAS: Thank you.

PHILLIPS: Well, a number of planned layoffs could top the million mark once again this year. Rhonda Schaffler live from the New York Stock Exchange with that.

HARRIS: Hi, Rhonda.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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Aired December 7, 2004 - 14:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: High-rise fire, high-risk situation. Amazingly, everyone makes it out live. We expect a live news conference from the mayor of Chicago any moment now. We'll bring that to you.
TONY HARRIS, CO-HOST: Delays and deliberations over. Now intelligence reform is apparently all but a done deal. We're live from Capitol Hill with the latest.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We have dealt the enemy a severe blow. The terrorist Zarqawi has lost his main sanctuary in Iraq. Ba'athist insurgents have lost.

(END VIDEO CLIP)

PHILLIPS: Now, is the blow going to Iraqi insurgents going to be enough? President Bush congratulates the troops, and a CIA official raises a security alarm in Iraq.

HARRIS: And live this hour, Leonardo DiCaprio. The international superstar comes in for a landing for the LIVE FROM interview.

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

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

We begin this hour with a new day for the CIA and the NSA and the NRO and the rest of the alphabet soup of U.S. intelligence agencies soon to be made over in a sprawling measure spawned by the failures of 9/11. After one last rewrite, an intel overhaul is poised to clear the House of Representatives and then the Senate. And then the 10th Congress will fade into history.

CNN's Ed Henry is on hand for the final sprint of the lame duck session.

Hi, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good afternoon, Kyra. Let me add one more acronym to Washington's alphabet soup that you mentioned.

PHILLIPS: Man.

HENRY: DNI, for director of national intelligence. There's actually a funny story behind how that happened and came to be in this legislation.

At the beginning of this intelligence reform debate, it was beinged called the national intelligence director. But the problem is the acronym would be NID, and Senator Susan Collins, the lead Senate negotiator, told CNN that at one point at a late-night session she said that a NID sounded like an insect to her and she did not think that would be -- would fit the title of someone so important now in this sweeping legislation.

So rather than NID, it's now DNI. So now you know. That's how they decide these things behind closed doors.

But in all seriousness, they are talking a lot today on Capitol Hill about how this is a monumental day with this reform. In fact, several senators and supporters of the legislation, like Bob Graham, Joe Lieberman, have noted that it's December 7, the anniversary of Pearl Harbor. And they're saying that they think this reform -- or legislation could help prevent another Pearl Harbor, another 9/11, another terror attack here on American soil.

That's a very bold statement, obviously. But is as you remember, the 9/11 Commission urged Congress to create a new director of national intelligence to help prevent such an attack. And, in fact, Democratic Congresswoman Jane Harman said that in fighting the war on terror, intelligence officials now have the tools they need.

(BEGIN VIDEO CLIP)

REP. JANE HARMAN (D), INTELLIGENCE COMMITTEE: Good people need better tools. Here come the tools to help good people succeed.

If those people weren't out there, we would not have the successes that we now have around the world. We need more successes and fewer failures around the world, and I believe that those people in this new organization will be responsible for those successes.

(END VIDEO CLIP)

HENRY: Now, the lead Senate negotiator who I mentioned, Susan Collins, earlier today said this was a big victory for President Bush. He was personally involved in pushing this through Congress.

They're still awaiting votes in the House and Senate, of course. But Susan Collins was pointing out it's a victory for the president. But that victory is coming with a little bit of difficulty also for the president and Republican leaders here on the Hill.

There was a long meeting this morning among House Republicans. Lawmakers coming out of that meeting tell is us there was deep division over the fact that the intelligence immigration provisions that were introduced by Jim Sensenbrenner, the Republican congressman, and stripped out, kept out of this legislation, angering dozens of conservatives who stood up at this meeting, who were complaining about it.

And, in fact, when Congressman Sensenbrenner spoke out about how these provisions were taken out, we're told there was a long bit of applause from his fellow Republicans. So expect a lot of conservatives to end up opposing this legislation when it hits the House floor. In fact, Congressman Sensenbrenner earlier told CNN he thinks the job is not complete.

(BEGIN VIDEO CLIP)

REP. JAMES SENSENBRENNER (R), JUDICIARY CHAIRMAN: I think the compromise is incomplete, but they do have the signatures to bring the bill to the floor. And it will pass.

So the fight now is to make sure that we get a vote early next year on driver's licenses and asylum reform in order to complete the job. I think Congress's job is to prevent a terrorist attack from happening rather than managing the consequences of it. And good intelligence is useless without good homeland security.

(END VIDEO CLIP)

HENRY: Now, other lawmakers, like House Intelligence Chairman Peter Hoekstra, they're pointing out that this was the best deal that congressional leaders could get at this time. And they're vowing that they will come back and try to complete that job in January and deal with those immigration provisions -- Kyra.

PHILLIPS: All right. NSA, NRO and now DNI. You're giving me a lot of homework, Ed Henry. Thank you very much -- Tony.

HENRY: Thank you.

HARRIS: President Bush is spending Pearl Harbor day at a Marine base that's seen its share of infamy in Iraq. California's Camp Pendleton is home to the 1st Marine Expeditionary Force, some 21,000 members of which are in the Persian Gulf as we speak. Some 200 Camp Pendleton Marines have died in the war in Iraq, and the commander in chief says their sacrifice, especially in the recent siege of Falluja, was not in vain.

(BEGIN VIDEO CLIP)

BUSH: We have dealt the enemy a severe blow. The terrorist Zarqawi has lost his main sanctuary in Iraq. The Ba'athist insurgents have lost one of their main bases of operation.

We seized tons of weapons and shut down terrorist bomb-making factories, killed more than 2,000 enemy fighters, and captured thousands more. The enemies of freedom in Iraq have been wounded, but they're not yet defeated. They'll keep on fighting. And so will the Marine Corps.

(END VIDEO CLIP)

HARRIS: Pendleton has one of the highest casualty rates of any base with forces in Iraq.

The CIA station chief in Baghdad sounds a warning about security across Iraq. Details of a classified cable he wrote last month are now being leaked to the press. And those who have seen it say the cable gives a bleak assessment and warns of worst to come if measures are not taken to improve security and speed up economic development.

More insurgent violence on the ground in Iraq today. Two churches in the northern city of Mosul were bombed. Three people were wounded in one of those attacks. Also today, a U.S. soldier was killed by small arms fire in Baghdad, and a Marine died in a vehicle accident west of Baghdad.

PHILLIPS: Some three years now since United States troops led the overthrow of the Taliban, Afghanistan inaugurates an elected president. Vice President Dick Cheney and Defense Secretary Donald Rumsfeld were in attendance in Kabul at the official inauguration of Hamid Karzai.

The American-backed leader won a landslide victory back in October. He says his people are indebted to the United States.

HARRIS: America's flu vaccine supply is getting a much needed shot in the arm. Health and Human Services Secretary Tommy Thompson says an additional 1.2 million doses will soon be available to those considered high risk. They're being manufactured by GlaxoSmithKline at the company's facility in Germany. U.S. investigators have been there and say the vaccines are safe, but because the product wasn't approved in the United States, there's a caveat.

(BEGIN VIDEO CLIP)

LESTER CRAWFORD, ACTING FDA COMMISSIONER: The product that we're announcing today is not approved in the U.S. So we're letting it in under an IND, or an investigational application.

To the public, the main thing this means is that it will require their consent. So when an individual gets a dose of this particular vaccine, they will be required to sign a consent form.

(END VIDEO CLIP)

HARRIS: Besides the new doses already approved, the company has agreed to make 2.8 million more for the season.

PHILLIPS: It was almost impossible to breathe. That's how one man described his escape from last night's fire in a Chicago high- rise. More than three dozen people were taken to the hospital. Most of them firefighters.

The latest now from CNN's Jonathan Freed on the scene throughout the night.

(BEGIN VIDEOTAPE)

JONATHAN FREED, CNN CORRESPONDENT: Word from the Chicago Fire Department is that everything worked the way it was supposed to last night. People followed instructions and remembered their fire drill procedures at the LaSalle Bank building which is in the heart of Chicago's financial district here in the area of town known as The Loop.

Now, the fire department responded quickly and in force, it says, with one-third of the city's firefighters on the scene. And the department says that all of that added up and saved lives. And one person whose life was saved, Sarah Nadelhoffer, told CNN about her experience earlier today.

SARAH NADELHOFFER, SURVIVED FIRE: Our windows open up in our office. So I opened up our -- my window and I started breathing out my window. And I stayed on the phone with 911 and kept asking if they knew where we were and they were coming for us. And they kept reassuring us.

And then as the time went on, it was about a half an hour later. I was with my partners in one office, and we had the window open, and we were breathing out the window and calling 911.

FREED: The fire department says that the reason the fire burned so long, five and a half hours last night, was due to the maple hardwood floors in the 1930s building. And the department says that when floors like that get ignited, they are simply tough to extinguish.

Now, among the three dozen injured were 22 firefighters. And none of the injuries were life-threatening.

In Chicago, Jonathan Freed, CNN.

Back to you.

(END VIDEOTAPE)

PHILLIPS: Let's go straight to Chicago now. A live press conference. Talking right now the fire chef of Chicago. Let's listen in.

CORTEZ TROTTER, CHICAGO FIRE COMMISSIONER: ... to just leave that to the investigating team.

So again, I would like to just commend the men and women of the Chicago Fire Department, our suburban neighbors that responded and, most of all, the people that were in that building that helped out tremendously in terms of what they did prior to our arrival.

This building had unlocking doors. This building had a life safety system. This is a category 3 building, so some of the things that they had in place were not required, but they took the extra step to make a difference. And for us, it made all of the difference in the world. And I appreciate them for it, and I would encourage other buildings to follow in their footsteps of better protecting or even better protecting the people that live, work and visit their buildings as we in the Chicago Fire Department continue to strive to even better protect the people of Chicago.

Leaning forward in the next 48 hours, as we made a commitment some months ago, I do intend to conduct a review of this fire. I believe that although things seemed to work well for us, I still believe that we can always do better. And I think that every fire is different, and we would be remiss if we did not pause and take the opportunity to review our actions in detail and see if there are areas in which we can improve upon that.

Thank you.

UNIDENTIFIED MALE: The first call came into 911 at 6:29 and eight seconds last -- yesterday evening.

PHILLIPS: You were just listening to Cortez Trotter, the Chicago fire commissioner, updating reporters on that fire that raged for more than five hours in a downtown Chicago high-rise office building overnight. At least 37 people were hurt, 22 of those 37 firefighters.

He's saying that in the next 48 hours there will be a massive review of this fire. It seems that all systems worked well from 911 systems to the fire drills. He felt that that's what ultimately saved lives, in addition to the condition of that building. So we'll continue to follow what comes out of that injnvestigation, of course.

Also, straight ahead, will the United Nations, Kofi Annan bow to pressure for him to step down amid a scandal involving the Oil-for- Food program in Iraq? The U.N. secretary speaks about it publicly.

Also ahead, the virtual battlefield. A high-tech approach to helping soldiers stay alive when the real action starts.

And later, what does former President Clinton have in common with the Black Eyed Peas and Kanye West? Here's a hint: they're all making some extra space on their mantles.

(COMMERCIAL BREAK)

HARRIS: And now more food for thought in the Oil-for-Food flap and Kofi Annan's culpability or lack of it. This from a New Jersey congressman and member of the permanent House Subcommittee on Investigations...

(BEGIN VIDEO CLIP)

REP. SCOTT GARRETT (R), INVESTIGATIONS SUBCOMMITTEE: To me, the question should not be whether Kofi Annan should remain in charge. To me, the larger question is whether he should be in jail at this point in time. Literally, just going back on your comment, if this were to occur in any corporate scandal in the United States, you would be hearing cries from both sides of the aisle at this point in time for his immediate resignation and also for his arrest.

(END VIDEO CLIP)

HARRIS: Hot rhetoric. Well, today, we have some reaction, albeit diplomatic, to the increasingly inflammatory rhetoric. And CNN's Richard Roth fills us in from U.N. headquarters -- Richard.

RICHARD ROTH, CNN UNITED NATIONS CORRESPONDENT: Well, I don't see any police behind me there on 1st Avenue in New York, but certainly Secretary-General Annan knows that the pressure it on. You can see it many times now on his face and his hesitancy to appear before cameras, even on subjects such as Sudan. However, today, in his first public comments on television, Annan did stop for a moment and was asked when is he going to respond to the calls from the Congress about resigning.

(BEGIN VIDEO CLIP)

KOFI ANNAN, U.N. SECRETARY-GENERAL: I have quite a lot of work to do, and I'm carrying on with my work. We have a major agenda next year and the year ahead. We're trying to reform this organization, and we'll carry on.

(END VIDEO CLIP)

ROTH: And that's really been the response from the U.N. secretary-general. He still has a lot of work to do, and he is giving no indications that he wants to resign. And many supporters, all the countries here, are backing him, saying, "Where's the proof? How can you say somebody should resign before the investigation, six of them that are being done, are completed?"

Friday night at a roast, I can tell you, he did say, "I'm resigned to having a good time."

Much of the increased calls for his resignation deal with his son, 29-year-old son Kojo, who is not too visible, lives in Nigeria, between Nigeria and Britain. This is Kojo Annan in the middle there, 29-year-old son, at the Nobel Peace Prize ceremony for his father, December 2001.

Kojo Annan has been reported to have been involved in business deals and was on the payroll of a Swiss company that is at the center of the Oil-for-Food investigation. Kojo, son, along with anyone connected to Oil-for-Food, is being investigated. John Danforth, the U.S. ambassador to the U.N., today again was cautious. Washington refusing to go all out and saying it backs Kofi Annan while also at the same time not joining in the calls for resignation.

(BEGIN VIDEO CLIP)

JOHN DANFORTH, U.S. AMBASSADOR TO U.N.: You can't conduct a fair and full investigation if before it even takes place or before it's completed you're already proclaiming that various people are involved or not involved, in any way prejudging the result.

(END VIDEO CLIP)

ROTH: Kofi Annan appears before the generally assembly tomorrow to give a report on reforming the organization. Not likely the topic of resignation will come up. However, he's having a lunch right now with the Security Council. It's a monthly lunch, no doubt over hors d'oeuvres and appetizers.

It's going to be discussed. It's the big story here still.

Back to you, Tony.

HARRIS: Richard, just a quick question. I see all the smoke. I'm still wondering where the fire is.

Is it in the documents that are still being withheld? Where is the fire here?

ROTH: The fire is coming from congressional critics of Annan and the U.N. who are slowly leaking out information from their own investigations. Now, this may have come out eventually, but they are being doled out as they receive it.

So the fire is coming from those who believe it is wrong for Annan to still be here at the U.N. and, in effect, presiding over how Paul Voelcker, the U.N.-approved panel, how he conducts his investigation. Even though Voelcker says he's his own man.

They think, like a regular company, if there's smoke, as you say, the person at the top should step aside. Also, how -- they question how could he not know what his son may or not been up to. We've had a lot of scandals in the past, though, with political leaders and relatives who went off the reservation, so to speak.

It's still early, though, for a lot of people. They would like to see some proof.

HARRIS: Yes. Richard Roth at the U.N. Richard, thank you -- Kyra.

PHILLIPS: Other news "Around the World" now.

A happy homecoming for a Cold War deserter, greeted by his Japanese wife and their two children. Former Army Sergeant Charles Jenkins arrived on Japan's Sato (ph) Island today where he plans to live out what he calls the last chapter of his life. He just finished serving 30 days in jail for his 1965 desertion.

In the Middle East, a jailed presidential prospect may quit the rice. Marwan Barghouti says that he may pull out of the Palestinian election to avoid splitting the party, according to an Israeli-Arab lawmaker who just spoke with him from jail. Polls show Barghouti running neck and neck with former prime minister and fatah rival Mahmoud Abbas.

Albuquerque, New Mexico, let's forget politics, hey? A T-shirt company there has put together a "Go Canadian" travel package for American who's don't want to be hassled during trips overseas. Its creator says it's not meant to be un-American, just a way for Yankee travelers to avoid debates with locals.

We're going to take a quick break. More LIVE FROM right after this. (COMMERCIAL BREAK)

HARRIS: Look here. The nominations are in for the music industry's most coveted honors. And that Kanye West that the kids seem to like so much is going to be tough to beat.

CNN's entertainment reporter Sibila Vargas joins us now with details on the Grammy nominees -- Sibila.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: That's right, Tony. It's music's big day. The 47th annual Grammy nominations have been announced.

Last year, urban music dominated the scene. And this year was no different. Newcomer Kanye West racked up the most nominations, 10 in all, including best new artist, best rap album, and the much coveted album of the year.

(BEGIN VIDEO CLIP)

KANYE WEST, MUSICIAN: You know, when I was trying to get my record deal, no one would -- no one would sign me. I got -- like, it was stuff that was on the table and then they pulled out at the very last minute and it felt like my life was just in shambles. And to turn around and be standing here with all this press around me, it's like a dream come true. And it's really unbelievable.

(END VIDEO CLIP)

VARGAS: Head-to-head with five-time Grammy winner Alicia Keys, as well as Usher, who were both nominated for eight statues.

The late, great Ray Charles will also compete for album of the year. His posthumous release "Genius Loves Company" was nominated for seven Grammys.

Wrapping up the best album category are rockers Green Day. Their album, "American Idiot," was also tapped for best rock album and record of the year -- Tony.

HARRIS: All right. Now, Sibila, looking back at the American Music Awards, Kanye West had some pretty strong words when he lost the best -- what was it, best new artist prize to the country singer, right?

VARGAS: That's right, to Gretchen Wilson. West and Wilson will definitely battle it out again for best new artist category. But no need for boxing gloves. I spoke to both artists about that incident right after today's announcement, and for them it's been cleared up and it's just water under the bridge.

(BEGIN VIDEO CLIP)

WEST: You know, I apologize for acting like really emotional at the other show. You know, I worked really, really hard on this album.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

GRETCHEN WILSON, MUSICIAN: I was hoping on the way here this morning that we'd be able to get together and say a few words to each other before we stood up there together. And we did.

And he's -- he's explained himself to me, and it makes perfect sense to me. And I don't think he ever meant to say anything negative toward me directly. And, you know, we're -- I think we're good. We're over it, we're fine, we're moving forward.

(END VIDEO CLIP)

VARGAS: By the way, Gretchen Wilson had a nice showing today as well, picking up four nominations in all, including one for country album of the year. So it should be a great night for all of music's favorite stars when the 47th annual Grammy Awards air February 13 on CBS.

Nice to know that they're letting bygones be bygones.

HARRIS: That's right. That's right. That's a good -- that's a lot of fun. All right. Sibila, thank you.

VARGAS: Thank you.

PHILLIPS: Well, a number of planned layoffs could top the million mark once again this year. Rhonda Schaffler live from the New York Stock Exchange with that.

HARRIS: Hi, Rhonda.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

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