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Scott Peterson Jury Recommends Death; Trials of Saddam's Regime Members to Begin Next Week; Thousands Displaced from Falluja; Study Finds Most States Not Prepared for Bioterrorism

Aired December 14, 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.


MILES O'BRIEN, CNN ANCHOR: Justice coming soon for Saddam Hussein's regime. Trials to start next week. Are Iraq's justice system and the accused ready for their days in court?
KYRA PHILLIPS, CNN ANCHOR: Who's ready, who's not, for a bioterror attack in the U.S.? A new report ranks states on readiness. It's revealing all right.

(BEGIN VIDEO CLIP)

RICHELLE NICE, SCOTT PETERSON JUROR: No emotion, no anything. That spoke a thousand words. That was loud and clear.

(END VIDEO CLIP)

O'BRIEN: And the jury speaks loud in their death sentence recommendation for Scott Peterson. You'll hear from some of them this hour.

PHILLIPS: A nap on the lap. The newest novelty item for sale in Tokyo generates a lot of pillow talk. It's our picture of the day.

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

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

It won't be official until February, but it's almost certain Scott Peterson will be sentenced to death for killing his wife and unborn child.

One day after recommending he be sent to Death Row, jurors say their thoughts were with Laci Peterson and her unborn son, Conner, when they made that decision.

Scott Peterson's lawyer also speaking out, as is Laci Peterson's family.

(BEGIN VIDEO CLIP)

RON GRANTSKI, LACI PETERSON'S STEPFATHER: What a nightmare. It hasn't changed. It's still a nightmare. It should never have happened. It's hurt too many people, for no reason. But justice was served. MARK GERAGOS, SCOTT PETERSON'S LAWYER: Obviously, we're very disappointed. Obviously, we plan on pursuing every and all appeals, motions for new trial and everything else. All I ask is that you respect Jackie and Lee's and the family's privacy for the next week or so.

(END VIDEO CLIP)

PHILLIPS: A closer look now at California's Death Row.

There are currently 641 inmates awaiting execution by lethal injection. The death penalty was reintroduced in California ten years ago. Ten people were executed since then. The last execution took place in 2002.

And if Scott Peterson is formally sentenced to death in February, as expected, he could spend more than 16 years on Death Row. That's the average time to carry out an execution in California.

O'BRIEN: Now, Peterson would spend that time in San Quentin State Prison outside of San Francisco. KTVU reporter Rob Roth was allowed a rare look inside that complex last year. He described what it was like to CNN's Paula Zahn last night.

(BEGIN VIDEO CLIP)

ROB ROTH, KTVU REPORTER: The thing that got me first was the smell. It's that combination of mold and musk and disinfectant. Ceiling tiles are -- are falling from the ceiling. You see watermarks everywhere. The place is basically falling apart. You know, it was built for about a tenth of the population that it has now.

The prisoners are -- the inmates are kept in very small cells. I believe they're something like five by nine. Concrete. They sleep on a very thin mattress on a concrete slab. And there's a commode. The bars are, like, this perforated -- perforated metal.

They're allowed out for about an hour -- an hour a day, on to the yard. But even the yard is depressing. It's -- it's concrete. You don't see a blade of grass anywhere.

And ironically, all this is in Marin County, one of most beautiful counties in California. It's about 25 miles north of San Francisco, in a town called San Raphael. And it's just a very, very gloomy place.

(END VIDEO CLIP)

PHILLIPS: Six men and six women, they spent months in the courtroom listening to all the evidence against Scott Peterson and looking at the defendant. Three of the jurors spoke out about the trial and what led them to sentence him to death.

(BEGIN VIDEOTAPE)

NICE: No emotion. No anything. That spoke a thousand words. That was loud and clear. Today, the giggles at the table. Loud and clear. I heard enough from him.

GREG BERATLIS, PETERSON JUROR: I would have liked to have heard something out of his mouth, yes. Anything. A plea for, for his life or, or just his opinion on everything that went on in the last, you know two years. But I never got that, and I couldn't use that for any decision making.

I didn't see much emotion at all. When I looked over there, I -- it was a blank stare. And I don't know why. I can't -- I couldn't read into that.

But I didn't -- we'd see him laugh at certain situations and then sit there and shake his head, as if in disbelief at what was going on. That's what I saw.

STEVE CARDIOSI, PETERSON JUROR: I did see emotions in him, most of which were anger. I mean, you could tell -- he didn't get upset and cry very often at all until the penalty phase, you saw a couple tears coming down his face.

I still would have liked to see -- I don't know if remorse is the right way. But a little more expression of caring about his loss. I mean, if -- if he was innocent -- he lost his wife and his child and he didn't -- seem to faze him.

And while that was going on, they're looking for his wife and his child, he's romancing a girlfriend. That's -- that doesn't make sense to me at all.

(END VIDEOTAPE)

O'BRIEN: Justice will be served. That is what Iraq's interim prime minister says is about to happen to some of Saddam Hussein's henchmen.

In a surprise announcement, Ayad Allawi revealed war crimes trials will get under way shortly, this despite recent indications the country is not ready for such proceedings.

Meanwhile, the violence in Iraq rages on.

CNN's Karl Penhaul joining us now on the phone from Baghdad with more -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Miles.

Prime Minister Ayad Allawi made this announcement in an appearance before the national assembly today. As you say, it wasn't entirely expected and he didn't name names. He didn't say whether Saddam himself would find himself in the court next week or which of his top aides would likely be the first ones on trial.

This is how he made the announcement.

(BEGIN VIDEO CLIP) AYAD ALLAWI, INTERIM PRIME MINISTER, IRAQ (through translator): Now we can say with confidence that we will begin trying these people next week in a consecutive and continuous manner until the people's justice is served to those that committed crimes against Iraq.

(END VIDEO CLIP)

PENHAUL: Initially, the interim government had said that these war crimes trials could begin in November or December, but then it was generally accepted that the timeline would slip, because prosecutors had to be trained for what is likely to be a very complex series of trials.

And then there was also people close to the trials, said that it would be impossible to prepare an indictment in time for this, and certainly the full trial proceedings would not be ready on time.

But political analysts have pointed to the fact this has probably got more to do with politics then it has to do with justice. Because Prime Minister Allawi is scheduled to announce a list of himself and other candidates to run in the January 30 elections to the national assembly.

So to say political analysts suggesting that this is more to do with a little bit of early electioneering rather than the justice system itself, Miles.

O'BRIEN: And I've got to ask that question, Karl. If it is early electioneering how -- what is the reaction to all of this?

PENHAUL: No reaction as yet from ordinary Iraqis, although it has been said over the last few weeks that many ordinary Iraqis may not react too favorably to an election bid by Allawi and some of the close government aides that are likely also to be on his list.

Because a lot of ordinary Iraqis simply don't think that this interim government has done enough to solve the basic problems of the country. Far from solving the problems of the insurgency, those seem to have got worse. But also the more basic problems of power, water, and gasoline, also seem to have got worse.

And so ordinary Iraqis are likely to judge him on that. And political analysts say this may be a bid to try and convince Iraqis that he is, in fact, doing something. And that, setting to right the record and right the wrong of Iraq's past -- Miles.

O'BRIEN: Karl Penhaul in Baghdad, thanks much.

Who would be the first to face crime proceedings, war crimes proceedings when those trials begin? And when will it be Saddam Hussein's turn? We'll talk about that and some other things with CNN military analyst Ken Robinson. That's coming up in just a few minutes.

PHILLIPS: Captured in Afghanistan. Provincial officials say that the former personal security chief of Taliban leader Mullah Omar is in custody.

Omar is one of the most wanted figures in the war on terror. The capture of someone who worked closely with him could help U.S. and Afghan forces track down Omar himself. Osama bin Laden is also believing to be hiding in that region.

O'BRIEN: There's a new study on America's readiness for a terror attack. Find out which states are most prepared, which are not, just ahead.

And who will the White House pick, now that Bernard Kerik is out of contention as homeland security secretary? We'll look at some of the contenders, a little later on LIVE FROM. Stay with us.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Despite daily violence, Iraq's interim prime minister says he's pressing ahead with two key events: elections next month and war crimes trials next week.

The defendants are expected to include some of the top names in the former regime. Prime Minister Allawi didn't name them, but Saddam Hussein and 11 top aides face war crimes charges.

(BEGIN VIDEO CLIP)

ALLAWI (through translator): I can tell you now, clearly and precisely that, God willing, next week the trials of the symbols of the former regime will start, one by one, so that justice can take its path in Iraq.

(END VIDEO CLIP)

PHILLIPS: Let's get some insight on the trial story from our military analyst, Ken Robinson.

I guess first of all, word is the aides will go to trial before Saddam Hussein. Why? Is there a chance they could roll over on him?

KEN ROBINSON, CNN MILITARY ANALYST: That's really a good point. It really makes sense for them to build their case a little at a time.

The Iraqi judicial system now, under a free democratic Iraq, is just getting started. Simultaneously, as they build up to the big case for Saddam, they need to build their case. And so they need to start with the underlings, to be able to build the larger case.

Think of it like a crime family. Saddam Hussein's regime was real similar to a crime family like on "The Sopranos," where they were doing illicit things they need to capture, as well as war crimes.

This individual, Majid, who was recently arrested this week, is a former member of the regime that escaped in '95 to Jordan with Hussein Kamel, the guy who escaped in 1995 and fingered Saddam's regime for their complicity in chemical and biological warfare experiments.

PHILLIPS: You mentioned the judicial system in Iraq. I remember when judges here in the United States were going over there to help get the courtrooms in order and help get the judges in order and the lawyers in order. Is it ready for something this big?

ROBINSON: It is an enormous challenge, because just this week, judges were assassinated. The terrorists have been targeting the judicial system, as well as members of the government.

And so the question really is going to be, where is this trial going to be held? How is this trial going to be secured? Because you know that it's a symbolic target.

The Americans -- the two key things that Senator Lugar said recently when he was visiting a school district, was the two key things he saw was the removal of the United States from the region and Iraq. And also the trial, the legitimate trial, of Saddam Hussein and his cronies, so that it doesn't look like a show trial but actually looks like something that the Iraqis are doing for themselves, for their own government.

PHILLIPS: Could there be a secret judge secret trial? Is it possible this could all take place, because of security issue, without any of us knowing anything?

ROBINSON: Well, certainly, they want to have transparency to be able to show the Iraqi people there is a rule of law and they people are going to be held accountable.

But from the standpoint of protection of both Saddam to become a defendant who makes it to trial and also to prevent that from being targeted, they are going to have to cloak it in some form of secrecy. It's yet to be learned whether they'll choose that or not.

PHILLIPS: Now, I was also reading that not all these regime members have met with their counsel, met with counsel yet. Why is that?

ROBINSON: You know, I can't answer that specific question. I simply don't know what their -- what the political/legal reasons were that, for a year now, Saddam has not been allowed to speak with his counsel, other than the fact that the rules of law, the rules of evidence, the rules of discovery that are being born right now out of this new democracy, if it becomes a democracy, are still in their embryonic stages.

And I think they're trying to sort that out, because they don't want to do anything that would compromise the eventual successful trial of these people for their criminal acts.

PHILLIPS: My final question, Saddam Hussein, with the ambushes and the surprise attacks that we see on a regular basis, is it possible that there could be plans going on right now to try and, while Saddam is being moved back and forth, going on trial, taken out of there, kidnapped? ROBINSON: I cannot imagine that the insurgents won't try to use the visibility of this event as another means to promote their message of instability.

PHILLIPS: Interesting. Ken Robinson, thank you so much.

ROBINSON: Thank you.

O'BRIEN: The fight for Falluja has forced thousands of Iraqi families to live in refugee camps, far from home.

CNN's Karl Penhaul, back now with a look at lives disrupted and deep anger against America.

(BEGIN VIDEOTAPE)

PENHAUL (voice-over): "There's only one God, and the Americans are the enemy of God," these girls chant as they languish for another day in a makeshift refugee camp.

More than 100 families are crammed into tents on this Baghdad University campus, since fleeing Falluja early last month, ahead of the U.S. assault on insurgents.

Sabrira Abdul Raheem and her seven children have been scraping by with food donations from the mosque next door. She has no idea when U.S. and Iraqi officials will let them return home or if they still have a home to go to.

SABRIRA ABDUL RAHEEM, FALLUJA RESIDENT (through translator): We thought the government would take care of us but have never experienced anything like this in my life. Where's the democracy and liberty Bush promised?

PENHAUL: As the wait goes on, the seeds of anti-U.S. discontent are growing. This is no children's rhyme. It's a rebel song.

"The longing is deep in our hearts. It's time to go back to Falluja," it goes, "So come on, let's walk with the Mujahideen to Falluja. We'll build our tomorrow with the Mujahideen."

Forty miles west, in Falluja, many homes lie in ruins after last month's fighting. U.S. commanders say they may allow tens of thousands of civilians who fled to begin returning later this month, one neighborhood at a time.

Falluja is still dangerous, littered with rubble and unexploded munitions. Power and water still hasn't been fully reconnected.

(on camera) In a move to stop insurgents gaining a new foothold, Marine commanders say all men of fight fighting age will have to undergo iris and fingerprint scans, much like aliens at U.s. airports. Entry will be limited to just five checkpoints.

BRIG. GEN. ERWIN LESSEL, DEPUTY OPERATIONS DIRECTOR: We clearly have to help separate the citizens who belong there who are residents, who want peace and security, from those who might try to infiltrate that and continue to conduct insurgent-type operations.

PENHAUL (voice-over): That's an insult, says Abbas Fadhil Ahmed.

ABBAS FADHIL AHMED, FALLUJA RESIDENT (through translator): It's our city and we'll enter and exit our city however we please. We don't need I.D.s or a blood test. We're not crossing the border.

PENHAUL: If the children are any measure, each day these people are kept out of their homes is another reason to hate the Americans. And another reason to sing their rebel song.

Karl Penhaul, CNN, Baghdad.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, poison politics. Who slipped potentially deadly dioxin to Ukrainian presidential candidate Viktor Yushchenko? A former CIA spy explores the cloak and dagger possibilities.

Later on LIVE FROM, they served their country in Iraq and Afghanistan. And now some returning war veterans are on the streets. A homeless Iraq war vet shares his story.

Also later on LIVE FROM, will Google replace your library? Why point and click might kick the Dewey Decimal System to the curb.

(END VIDEO CLIP)

O'BRIEN: Our CNN "Security Watch" poses this question: is your state properly prepared for a bioterror attack? For most, the answer is a loud and clear no, according to a report out today.

We get the surprising details from CNN medical correspondent Elizabeth Cohen.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: In the past few years, Miles, the government, state and federal government has spent billions of dollars trying to get the country up to snuff for what to do in case of a bioterrorism attack.

But according to this report group called Trust for America's Health, the country is not prepared. They gave states marks.

Now here's the general comment that they made about the state of -- the state of preparedness in this country. They said, "Three years after 9/11, many basic bioterrorism detection, diagnoses and response capabilities still are not in place."

They gave states a score on the scale of one to 10. What they found is that there were two very well prepared states. Florida and North Carolina received scores of nine.

However, Alaska and Massachusetts received scores of just three. And more states fell more towards Alaska and Massachusetts than towards the states that did well. They said in those states they just don't have the infrastructure in place to respond as well as they should in case of a bioterror attack.

O'BRIEN: All right. Those are the broad outlines of the problem. Do we have some specifics in this report?

COHEN: Yes, they say they found specifics of what states are not doing that they ought to be doing.

For example, they found that only six states were prepared to distribute stockpiled medicine. The way it works is that the federal government has a stockpile of vaccines and other medicines in case there were a bioterror attack, and they can get it to any locality in 12 hours.

Now, the issue is, can the state then get it where it needs to go? And according to this report, only six states are really ready to do that.

They also found that only one-third of state labs were ready to respond to an attack. If there were an attack, a lab would have to figure out what's the attack with? They said only one-third of state labs were really prepared to do that.

And then nearly 60 percent of states can't manage a test for plague and anthrax, for example.

So those are some ways, lab problems, other problems like that. Just the infrastructure isn't there, according to this report.

O'BRIEN: So what are the fixes, besides just spending more money, which is probably part of it?

COHEN: Right. Part of it is -- what they say is that people need to -- that the states and the federal government need to spend more money.

But they did have a couple of specific suggestions. First of all, and this is a really basic one, you need to have a bioterrorism plan in place. States are supposed to. But according to this group, the plans are not as complete as they should be.

Also, improve public health basics. For example, get public health labs that would test for whether or not something is anthrax or smallpox or whatever. Get those labs fully staffed.

Also, practice drills. You can have a plan in place, but you need to practice it in order for it to work in case of an actual event.

And also, encourage vaccine production. Miles, we've seen what happened this year with the flu vaccine, something that's supposed to happen every year. It's not even bioterrorism.

And still half of that supply had to be thrown out because of manufacturing problems. So what would happen if there was a smallpox attack or anthrax? Is there enough vaccine for everyone?

O'BRIEN: I shudder at the thought.

COHEN: Yes. Scary thinking.

O'BRIEN: All right. Elizabeth Cohen, thank you for dropping by. Appreciate it.

COHEN: OK. Thanks.

O'BRIEN: CNN is committed to providing the most reliable coverage of news that affects your security. Stay tuned to CNN for the latest information day and night.

Back with more LIVE FROM in a moment.

(COMMERCIAL BREAK)

PHILLIPS: Well, the Federal Reserve expected to announce its decision on interest rates in just about 45 minutes. Rhonda Schaffler join us LIVE FROM the New York stock exchange with a preview.

Hi, Rhonda.

(STOCK MARKET REPORT)

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Aired December 14, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Justice coming soon for Saddam Hussein's regime. Trials to start next week. Are Iraq's justice system and the accused ready for their days in court?
KYRA PHILLIPS, CNN ANCHOR: Who's ready, who's not, for a bioterror attack in the U.S.? A new report ranks states on readiness. It's revealing all right.

(BEGIN VIDEO CLIP)

RICHELLE NICE, SCOTT PETERSON JUROR: No emotion, no anything. That spoke a thousand words. That was loud and clear.

(END VIDEO CLIP)

O'BRIEN: And the jury speaks loud in their death sentence recommendation for Scott Peterson. You'll hear from some of them this hour.

PHILLIPS: A nap on the lap. The newest novelty item for sale in Tokyo generates a lot of pillow talk. It's our picture of the day.

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

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

It won't be official until February, but it's almost certain Scott Peterson will be sentenced to death for killing his wife and unborn child.

One day after recommending he be sent to Death Row, jurors say their thoughts were with Laci Peterson and her unborn son, Conner, when they made that decision.

Scott Peterson's lawyer also speaking out, as is Laci Peterson's family.

(BEGIN VIDEO CLIP)

RON GRANTSKI, LACI PETERSON'S STEPFATHER: What a nightmare. It hasn't changed. It's still a nightmare. It should never have happened. It's hurt too many people, for no reason. But justice was served. MARK GERAGOS, SCOTT PETERSON'S LAWYER: Obviously, we're very disappointed. Obviously, we plan on pursuing every and all appeals, motions for new trial and everything else. All I ask is that you respect Jackie and Lee's and the family's privacy for the next week or so.

(END VIDEO CLIP)

PHILLIPS: A closer look now at California's Death Row.

There are currently 641 inmates awaiting execution by lethal injection. The death penalty was reintroduced in California ten years ago. Ten people were executed since then. The last execution took place in 2002.

And if Scott Peterson is formally sentenced to death in February, as expected, he could spend more than 16 years on Death Row. That's the average time to carry out an execution in California.

O'BRIEN: Now, Peterson would spend that time in San Quentin State Prison outside of San Francisco. KTVU reporter Rob Roth was allowed a rare look inside that complex last year. He described what it was like to CNN's Paula Zahn last night.

(BEGIN VIDEO CLIP)

ROB ROTH, KTVU REPORTER: The thing that got me first was the smell. It's that combination of mold and musk and disinfectant. Ceiling tiles are -- are falling from the ceiling. You see watermarks everywhere. The place is basically falling apart. You know, it was built for about a tenth of the population that it has now.

The prisoners are -- the inmates are kept in very small cells. I believe they're something like five by nine. Concrete. They sleep on a very thin mattress on a concrete slab. And there's a commode. The bars are, like, this perforated -- perforated metal.

They're allowed out for about an hour -- an hour a day, on to the yard. But even the yard is depressing. It's -- it's concrete. You don't see a blade of grass anywhere.

And ironically, all this is in Marin County, one of most beautiful counties in California. It's about 25 miles north of San Francisco, in a town called San Raphael. And it's just a very, very gloomy place.

(END VIDEO CLIP)

PHILLIPS: Six men and six women, they spent months in the courtroom listening to all the evidence against Scott Peterson and looking at the defendant. Three of the jurors spoke out about the trial and what led them to sentence him to death.

(BEGIN VIDEOTAPE)

NICE: No emotion. No anything. That spoke a thousand words. That was loud and clear. Today, the giggles at the table. Loud and clear. I heard enough from him.

GREG BERATLIS, PETERSON JUROR: I would have liked to have heard something out of his mouth, yes. Anything. A plea for, for his life or, or just his opinion on everything that went on in the last, you know two years. But I never got that, and I couldn't use that for any decision making.

I didn't see much emotion at all. When I looked over there, I -- it was a blank stare. And I don't know why. I can't -- I couldn't read into that.

But I didn't -- we'd see him laugh at certain situations and then sit there and shake his head, as if in disbelief at what was going on. That's what I saw.

STEVE CARDIOSI, PETERSON JUROR: I did see emotions in him, most of which were anger. I mean, you could tell -- he didn't get upset and cry very often at all until the penalty phase, you saw a couple tears coming down his face.

I still would have liked to see -- I don't know if remorse is the right way. But a little more expression of caring about his loss. I mean, if -- if he was innocent -- he lost his wife and his child and he didn't -- seem to faze him.

And while that was going on, they're looking for his wife and his child, he's romancing a girlfriend. That's -- that doesn't make sense to me at all.

(END VIDEOTAPE)

O'BRIEN: Justice will be served. That is what Iraq's interim prime minister says is about to happen to some of Saddam Hussein's henchmen.

In a surprise announcement, Ayad Allawi revealed war crimes trials will get under way shortly, this despite recent indications the country is not ready for such proceedings.

Meanwhile, the violence in Iraq rages on.

CNN's Karl Penhaul joining us now on the phone from Baghdad with more -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Miles.

Prime Minister Ayad Allawi made this announcement in an appearance before the national assembly today. As you say, it wasn't entirely expected and he didn't name names. He didn't say whether Saddam himself would find himself in the court next week or which of his top aides would likely be the first ones on trial.

This is how he made the announcement.

(BEGIN VIDEO CLIP) AYAD ALLAWI, INTERIM PRIME MINISTER, IRAQ (through translator): Now we can say with confidence that we will begin trying these people next week in a consecutive and continuous manner until the people's justice is served to those that committed crimes against Iraq.

(END VIDEO CLIP)

PENHAUL: Initially, the interim government had said that these war crimes trials could begin in November or December, but then it was generally accepted that the timeline would slip, because prosecutors had to be trained for what is likely to be a very complex series of trials.

And then there was also people close to the trials, said that it would be impossible to prepare an indictment in time for this, and certainly the full trial proceedings would not be ready on time.

But political analysts have pointed to the fact this has probably got more to do with politics then it has to do with justice. Because Prime Minister Allawi is scheduled to announce a list of himself and other candidates to run in the January 30 elections to the national assembly.

So to say political analysts suggesting that this is more to do with a little bit of early electioneering rather than the justice system itself, Miles.

O'BRIEN: And I've got to ask that question, Karl. If it is early electioneering how -- what is the reaction to all of this?

PENHAUL: No reaction as yet from ordinary Iraqis, although it has been said over the last few weeks that many ordinary Iraqis may not react too favorably to an election bid by Allawi and some of the close government aides that are likely also to be on his list.

Because a lot of ordinary Iraqis simply don't think that this interim government has done enough to solve the basic problems of the country. Far from solving the problems of the insurgency, those seem to have got worse. But also the more basic problems of power, water, and gasoline, also seem to have got worse.

And so ordinary Iraqis are likely to judge him on that. And political analysts say this may be a bid to try and convince Iraqis that he is, in fact, doing something. And that, setting to right the record and right the wrong of Iraq's past -- Miles.

O'BRIEN: Karl Penhaul in Baghdad, thanks much.

Who would be the first to face crime proceedings, war crimes proceedings when those trials begin? And when will it be Saddam Hussein's turn? We'll talk about that and some other things with CNN military analyst Ken Robinson. That's coming up in just a few minutes.

PHILLIPS: Captured in Afghanistan. Provincial officials say that the former personal security chief of Taliban leader Mullah Omar is in custody.

Omar is one of the most wanted figures in the war on terror. The capture of someone who worked closely with him could help U.S. and Afghan forces track down Omar himself. Osama bin Laden is also believing to be hiding in that region.

O'BRIEN: There's a new study on America's readiness for a terror attack. Find out which states are most prepared, which are not, just ahead.

And who will the White House pick, now that Bernard Kerik is out of contention as homeland security secretary? We'll look at some of the contenders, a little later on LIVE FROM. Stay with us.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Despite daily violence, Iraq's interim prime minister says he's pressing ahead with two key events: elections next month and war crimes trials next week.

The defendants are expected to include some of the top names in the former regime. Prime Minister Allawi didn't name them, but Saddam Hussein and 11 top aides face war crimes charges.

(BEGIN VIDEO CLIP)

ALLAWI (through translator): I can tell you now, clearly and precisely that, God willing, next week the trials of the symbols of the former regime will start, one by one, so that justice can take its path in Iraq.

(END VIDEO CLIP)

PHILLIPS: Let's get some insight on the trial story from our military analyst, Ken Robinson.

I guess first of all, word is the aides will go to trial before Saddam Hussein. Why? Is there a chance they could roll over on him?

KEN ROBINSON, CNN MILITARY ANALYST: That's really a good point. It really makes sense for them to build their case a little at a time.

The Iraqi judicial system now, under a free democratic Iraq, is just getting started. Simultaneously, as they build up to the big case for Saddam, they need to build their case. And so they need to start with the underlings, to be able to build the larger case.

Think of it like a crime family. Saddam Hussein's regime was real similar to a crime family like on "The Sopranos," where they were doing illicit things they need to capture, as well as war crimes.

This individual, Majid, who was recently arrested this week, is a former member of the regime that escaped in '95 to Jordan with Hussein Kamel, the guy who escaped in 1995 and fingered Saddam's regime for their complicity in chemical and biological warfare experiments.

PHILLIPS: You mentioned the judicial system in Iraq. I remember when judges here in the United States were going over there to help get the courtrooms in order and help get the judges in order and the lawyers in order. Is it ready for something this big?

ROBINSON: It is an enormous challenge, because just this week, judges were assassinated. The terrorists have been targeting the judicial system, as well as members of the government.

And so the question really is going to be, where is this trial going to be held? How is this trial going to be secured? Because you know that it's a symbolic target.

The Americans -- the two key things that Senator Lugar said recently when he was visiting a school district, was the two key things he saw was the removal of the United States from the region and Iraq. And also the trial, the legitimate trial, of Saddam Hussein and his cronies, so that it doesn't look like a show trial but actually looks like something that the Iraqis are doing for themselves, for their own government.

PHILLIPS: Could there be a secret judge secret trial? Is it possible this could all take place, because of security issue, without any of us knowing anything?

ROBINSON: Well, certainly, they want to have transparency to be able to show the Iraqi people there is a rule of law and they people are going to be held accountable.

But from the standpoint of protection of both Saddam to become a defendant who makes it to trial and also to prevent that from being targeted, they are going to have to cloak it in some form of secrecy. It's yet to be learned whether they'll choose that or not.

PHILLIPS: Now, I was also reading that not all these regime members have met with their counsel, met with counsel yet. Why is that?

ROBINSON: You know, I can't answer that specific question. I simply don't know what their -- what the political/legal reasons were that, for a year now, Saddam has not been allowed to speak with his counsel, other than the fact that the rules of law, the rules of evidence, the rules of discovery that are being born right now out of this new democracy, if it becomes a democracy, are still in their embryonic stages.

And I think they're trying to sort that out, because they don't want to do anything that would compromise the eventual successful trial of these people for their criminal acts.

PHILLIPS: My final question, Saddam Hussein, with the ambushes and the surprise attacks that we see on a regular basis, is it possible that there could be plans going on right now to try and, while Saddam is being moved back and forth, going on trial, taken out of there, kidnapped? ROBINSON: I cannot imagine that the insurgents won't try to use the visibility of this event as another means to promote their message of instability.

PHILLIPS: Interesting. Ken Robinson, thank you so much.

ROBINSON: Thank you.

O'BRIEN: The fight for Falluja has forced thousands of Iraqi families to live in refugee camps, far from home.

CNN's Karl Penhaul, back now with a look at lives disrupted and deep anger against America.

(BEGIN VIDEOTAPE)

PENHAUL (voice-over): "There's only one God, and the Americans are the enemy of God," these girls chant as they languish for another day in a makeshift refugee camp.

More than 100 families are crammed into tents on this Baghdad University campus, since fleeing Falluja early last month, ahead of the U.S. assault on insurgents.

Sabrira Abdul Raheem and her seven children have been scraping by with food donations from the mosque next door. She has no idea when U.S. and Iraqi officials will let them return home or if they still have a home to go to.

SABRIRA ABDUL RAHEEM, FALLUJA RESIDENT (through translator): We thought the government would take care of us but have never experienced anything like this in my life. Where's the democracy and liberty Bush promised?

PENHAUL: As the wait goes on, the seeds of anti-U.S. discontent are growing. This is no children's rhyme. It's a rebel song.

"The longing is deep in our hearts. It's time to go back to Falluja," it goes, "So come on, let's walk with the Mujahideen to Falluja. We'll build our tomorrow with the Mujahideen."

Forty miles west, in Falluja, many homes lie in ruins after last month's fighting. U.S. commanders say they may allow tens of thousands of civilians who fled to begin returning later this month, one neighborhood at a time.

Falluja is still dangerous, littered with rubble and unexploded munitions. Power and water still hasn't been fully reconnected.

(on camera) In a move to stop insurgents gaining a new foothold, Marine commanders say all men of fight fighting age will have to undergo iris and fingerprint scans, much like aliens at U.s. airports. Entry will be limited to just five checkpoints.

BRIG. GEN. ERWIN LESSEL, DEPUTY OPERATIONS DIRECTOR: We clearly have to help separate the citizens who belong there who are residents, who want peace and security, from those who might try to infiltrate that and continue to conduct insurgent-type operations.

PENHAUL (voice-over): That's an insult, says Abbas Fadhil Ahmed.

ABBAS FADHIL AHMED, FALLUJA RESIDENT (through translator): It's our city and we'll enter and exit our city however we please. We don't need I.D.s or a blood test. We're not crossing the border.

PENHAUL: If the children are any measure, each day these people are kept out of their homes is another reason to hate the Americans. And another reason to sing their rebel song.

Karl Penhaul, CNN, Baghdad.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, poison politics. Who slipped potentially deadly dioxin to Ukrainian presidential candidate Viktor Yushchenko? A former CIA spy explores the cloak and dagger possibilities.

Later on LIVE FROM, they served their country in Iraq and Afghanistan. And now some returning war veterans are on the streets. A homeless Iraq war vet shares his story.

Also later on LIVE FROM, will Google replace your library? Why point and click might kick the Dewey Decimal System to the curb.

(END VIDEO CLIP)

O'BRIEN: Our CNN "Security Watch" poses this question: is your state properly prepared for a bioterror attack? For most, the answer is a loud and clear no, according to a report out today.

We get the surprising details from CNN medical correspondent Elizabeth Cohen.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: In the past few years, Miles, the government, state and federal government has spent billions of dollars trying to get the country up to snuff for what to do in case of a bioterrorism attack.

But according to this report group called Trust for America's Health, the country is not prepared. They gave states marks.

Now here's the general comment that they made about the state of -- the state of preparedness in this country. They said, "Three years after 9/11, many basic bioterrorism detection, diagnoses and response capabilities still are not in place."

They gave states a score on the scale of one to 10. What they found is that there were two very well prepared states. Florida and North Carolina received scores of nine.

However, Alaska and Massachusetts received scores of just three. And more states fell more towards Alaska and Massachusetts than towards the states that did well. They said in those states they just don't have the infrastructure in place to respond as well as they should in case of a bioterror attack.

O'BRIEN: All right. Those are the broad outlines of the problem. Do we have some specifics in this report?

COHEN: Yes, they say they found specifics of what states are not doing that they ought to be doing.

For example, they found that only six states were prepared to distribute stockpiled medicine. The way it works is that the federal government has a stockpile of vaccines and other medicines in case there were a bioterror attack, and they can get it to any locality in 12 hours.

Now, the issue is, can the state then get it where it needs to go? And according to this report, only six states are really ready to do that.

They also found that only one-third of state labs were ready to respond to an attack. If there were an attack, a lab would have to figure out what's the attack with? They said only one-third of state labs were really prepared to do that.

And then nearly 60 percent of states can't manage a test for plague and anthrax, for example.

So those are some ways, lab problems, other problems like that. Just the infrastructure isn't there, according to this report.

O'BRIEN: So what are the fixes, besides just spending more money, which is probably part of it?

COHEN: Right. Part of it is -- what they say is that people need to -- that the states and the federal government need to spend more money.

But they did have a couple of specific suggestions. First of all, and this is a really basic one, you need to have a bioterrorism plan in place. States are supposed to. But according to this group, the plans are not as complete as they should be.

Also, improve public health basics. For example, get public health labs that would test for whether or not something is anthrax or smallpox or whatever. Get those labs fully staffed.

Also, practice drills. You can have a plan in place, but you need to practice it in order for it to work in case of an actual event.

And also, encourage vaccine production. Miles, we've seen what happened this year with the flu vaccine, something that's supposed to happen every year. It's not even bioterrorism.

And still half of that supply had to be thrown out because of manufacturing problems. So what would happen if there was a smallpox attack or anthrax? Is there enough vaccine for everyone?

O'BRIEN: I shudder at the thought.

COHEN: Yes. Scary thinking.

O'BRIEN: All right. Elizabeth Cohen, thank you for dropping by. Appreciate it.

COHEN: OK. Thanks.

O'BRIEN: CNN is committed to providing the most reliable coverage of news that affects your security. Stay tuned to CNN for the latest information day and night.

Back with more LIVE FROM in a moment.

(COMMERCIAL BREAK)

PHILLIPS: Well, the Federal Reserve expected to announce its decision on interest rates in just about 45 minutes. Rhonda Schaffler join us LIVE FROM the New York stock exchange with a preview.

Hi, Rhonda.

(STOCK MARKET REPORT)

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