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Whites Mulls More DHS Picks; O'Keefe: From NASA to LSU

Aired December 14, 2004 - 15:00   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: In the news now, the Fed pushes up interest rates, expected rate hike announced within the last hour. You saw it here live. The Fed boosted a key short-term interest rate by one quart percentage point, fifth rate increase this year for those of you keeping score at home.
The net tightens on al Qaeda. In Afghanistan, security forces captured the former personal security chief to Taliban leader Mullah Mohammed Omar. Today provincial officials told Reuters - that's a wire service -- they arrested the former aide as he traveled to Kandahar. Officials hope the arrest will help U.S. and Afghan forces track down Mullah Omar who is one of the most wanted fugitives in the war on terror.

Justice will be served. With those words Iraq's interim Prime Minister Ayad Allawi made a surprise announcement today that Iraqi war crime trials will begin next week. Allawi didn't mention which cases might be tried first. Saddam Hussein and 11 high-profile members of his regime face charges. The list includes former deputy Prime Minister Tariq Aziz and the man known as chemical Ali.

And in Washington, the Presidential Medal of Freedom awarded to three men central to the Iraq policy of President Bush. Retired General Tommy Franks, former CIA Director George Tenet. We got this all backwards. That's Franks. Before that was Paul Bremer awarded the nation's highest civilian honor. There's Tenet. Supposedly the words and the pictures are supposed to go together here. Sorry, folks, but you got the idea. They were involved in what the president calls pivotal roles in great events.

KYRA PHILLIPS, CNN ANCHOR: First this hour, a political bombshell in Baghdad, a surprise announcement from Iraq's interim leader, Ayad Allawi. Allawi says that his government is ready to go ahead with war crimes trials for Saddam Hussein 11 of his former henchman.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, IRAQ INTERIM PRIME MINISTER: 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: It's widely believed that Saddam Hussein will not be the first to stand trial. Then, again, up until today the trials were not expected for another year or more. Also today in Baghdad another deadly bombing near the seat of political power. A car bomb exploded at a checkpoint leading to the heavily fortified Green Zone killing at least two people. A suicide bombing in nearly the same spot killed eight people yesterday.

O'BRIEN: With the Kerik nomination having crashed and burned, the Bush administration is casting out nets for a homeland security secretary. With the latest on that, we go to our White House correspondent CNN's Suzanne Malveaux. Suzanne, I assume they are doing a little extra vetting this go around?

SUZANNE MALVEAUX, WHITE HOUSE CORRESPONDENT: You can bet that it really is going to be a very thorough vetting process. We saw the president publicly in the East Room earlier today. That's where he was presenting those Medals of Freedom to those -- the highest honor that he can give to a civilian, to three who were critical when it comes to the Iraq war. But behind the scenes privately of course, the Bush administration continues to search for a Homeland Security Department secretary.

Some of those that are being mentioned as possible front runners, Asa Hutchinson. He's the undersecretary for border and transportation security. He's lead more than 110,000 employees basically responsible for coordinating enforcement activities along the borders, the waterways, transportation and immigration.

Another name that is coming up, keeps coming up as well is Fran Townsend. She is the adviser, homeland security adviser to the president. She reports to Mr. Bush on policy matters as well as combating terrorism. She came to the White House from the U.S. Coast Guard. She was working on intelligence matters there. She also served some 13 years at the Justice Department.

And, perhaps, the most interesting name that keeps resurfacing particularly on the Hill for bipartisan support is Senator Joe Lieberman, the Democrat from Connecticut, most notably Al Gore's running mate back in 2000. He is getting a lot of support, Republicans and Democrats alike. As you know, he was one of the authors of the Homeland Security Department legislation which actually created that mammoth department. He has some very interesting, personal appealing background being the child of survivors of the Holocaust coming to the United States to escape Hitler's regime, very much talked about. Democratic sources saying that he indeed would interested in such an offer. The Republican sources saying that the president is at least open to looking at a Democrat in this position -- Miles.

O'BRIEN: Suzanne Malveaux at the White House. Thank you very much -- Kyra.

PHILLIPS: On the CNN security watch, we have all heard the concerns about the possibility terrorists might try to strike with nuclear, chemical, or biological weapons. But a new report finds U.S. states still have a long way to go to prepare for a bio-terror attack. The nonpartisan Trust for America's Health ranked the states on a scale of one to 10, with 10 being the most prepared. Only six states got an eight or better: Florida, North Carolina, Minnesota, Nebraska, New Hampshire and Virginia. More than two thirds of all states received scores of six or less including the most populous state, California, which got a five. The report says that while progress has been made, basic bio-terrorism detection, diagnosis and response capabilities are lacking.

Nearly 10 years ago, the whole world awoke to the dangers of chemical terrors when a doomsday cult launched a shocking attack in Japan. CNN's Bill Hemmer is reporting this week from Tokyo. He spoke with a noted expert on the lessons learned that scary day.

(BEGIN VIDEOTAPE)

DAVID KAPLAN, AUTHOR: Aum was a doomsday set that was intent on jump starting the apocalypse.

BILL HEMMER, CNN CORRESPONDENT (voice-over): On March 20, 1995, this group of homegrown terrorists launched an attack on Tokyo's subway system, the world's busiest, using deadly Sarin nerve gas. Twelve people were killed, more than 5,000 injured. And Japan's image, as a safe haven from terror was shattered.

KAPLAN: Ohm's attacks paralyzed Japanese society. They declared a day of fear, which paralyzed much of Tokyo. People didn't go out of the houses. It really was quite amazing what this one doomsday sect was able to accomplish in a pretty sophisticated society.

HEMMER: David Kaplan, author of "The Cult at the End of the World" says Aum Shin Rikyo attack sounded alarms in Tokyo and in Washington.

KAPLAN: The 9/11 Commission in the United States talked about a failure of imagination, why we didn't see 9/11 coming. This attack, the subway attack was almost 9/11. And so it's been a huge wake-up call not just for the Japanese but for people everywhere. The terrorists can get a hold of these terribly destructive weapons.

HEMMER: Although it's not clear what, if anything, al Qaeda may have learned from Aum, Japan nearly 10 years after the Sarin gas attack could become a target again.

KAPLAN: Japan's been part of the coalition that's gone into Iraq. Japanese are strong backers of elements of U.S. foreign policy that have upset radical Muslims around the world.

HEMMER: And Kaplan says counter terrorism officials believe another attack on Japanese soil is a case of not if, but when.

KAPLAN: What I think the big danger is now that Ohm is pretty well contained, is what comes next? What is on the boards heading our way that we just don't see. We didn't see Oklahoma City coming. We didn't see 9/11 coming. We didn't see the Tokyo subway attack. What is next?

(END VIDEOTAPE)

PHILLIPS: And you can join Bill Hemmer tomorrow on "AMERICAN MORNING" live from Japan. He'll look at the alliance between Tokyo and the United States. "AMERICAN MORNING" begins every day at 7:00 Eastern.

O'BRIEN: Well, 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 on Laci Peterson and her son Conner when they made the decision. Scott Peterson's lawyer is 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 hurts too many people for no reason. But justice was served.

MARK GERAGOS, SCOTT PETERSON'S ATTORNEY: Obviously, we're very disappointed. Obviously we plan on pursuing every and all appeals, motions for new trial and everything else. All I'd ask is that you respect Jackie and Lee's and the family's privacy for the next week or so.

(END VIDEO CLIP)

PHILLIPS: 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 26 years ago. Ten people have been 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.

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

(BEGIN VIDEO CLIP)

RICHELLE NICE, PETERSON JUROR: 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 his life 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, 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 of what was going on. That's what I saw.

STEVE CAROOSI, 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 he was innocent, he lost his wife and his child and he didn't seem to phase him. And while that was going on, they were looking for his wife and his child, he's romancing a girlfriend. That doesn't make sense to me, at all.

(END VIDEO CLIP)

PHILLIPS: And tonight on "LARRY KING LIVE" hear from the foreman of the jury in the Scott Peterson case. That's at 9:00 p.m. Eastern, 6:00 Pacific, right here on CNN.

O'BRIEN: His job initially was to get the space agency back on financial solid ground. But his three years at NASA really wasn't a lot different than that. It was kind of a wild ride. Sean O'Keefe is giving his first interview since announcing his resignation yesterday and you'll see it on LIVE FROM only if you stay tuned.

(COMMERCIAL BREAK)

JACQUI JERAS, CNN METEOROLOGIST: Hello everyone. I'm meteorologist Jacqui Jeras. A chilly one yet again for today as high pressure dominates the weather across the eastern two thirds of the country. In addition to the cold temperature, there is snow blowing across the great lakes and parts of the northeast again today as the cold air blows over that warmer lake water.

Across the west, a little bit breezy to the southwest but it looks beautiful with plenty of sunshine and into the Pacific northwest, a little bit of wet weather and a little bit of snow into the higher elevations but not a major storm, 43 degrees overnight in Seattle, 28 degrees in Denver and look at those freezing temperatures dropping all the way down to the Gulf Coast, even looking at freezing temperatures down into Orlando and Tampa tonight. LIVE FROM continues right after this.

(COMMERCIAL BREAK)

O'BRIEN: The man who has overseen the space program through the Columbia shuttle disaster and its aftermath ready to take on some new challenges now. NASA Administrator Sean O'Keefe joining us from Washington from NASA headquarters for his interview since announcing his resignation yesterday. Sean, good to see you. Thanks for joining us.

SEAN O'KEEFE, NASA ADMINISTRATOR: Same to you, Miles. How are you doing?

O'BRIEN: I'm well. You told us repeatedly that you were interested in sticking around until return to flight, when the shuttle flies again. That's been delayed a little bit. Is that why you've decided you've got to leave now?

O'KEEFE: It's just a real challenge. I would love to serve this president and this administration for as long as he would have me if I can manage to find a way to do so. It's been a really inspiring team to be a part of and the president himself is someone I'm very, very loyal to. As a consequence this is a hard decision for that alone.

O'BRIEN: But why now then?

O'KEEFE: It's a great opportunity. I think it's was an interest been expressed by LSU and they are graciously considering me as a candidate. I look forward to running that to conclusion and seeing where it goes. But one way or another I really do need to move on for my family and it's an opportunity to continue to do that, potentially go back home and do some things that I think would still be involved in public service.

O'BRIEN: We should tell our viewers it's the job of chancellor of Louisiana State University which would afford you a little nicer lifestyle, better hours, much better pay, all the good things that you need to enjoy your family. We have a little opportunity to spend some time with your family a little more than a year ago. I know you don't get much time with them. You have three children, the oldest hopefully going off to Cornell. She's much smarter than you and I combined. And I'm curious about the sacrifices people like you make in order to do your jobs.

O'KEEFE: It's difficult. As we were chatted about before, Miles, our children humble us every single day. The first of three on the way to college. That becomes a time when you got to really reflect a little bit about providing for them. And one of the primary things I had as an advantage in life is my parents, I still don't know how they did it, put me all the way through college and graduate school. I didn't have a dime worth of debt when I came out and I owe that to my kids just the same way they seem to provide for me and my brothers and sisters. So it's an opportunity I think to try to give something back.

O'BRIEN: I'm going to guess it's a popular decision in the O'Keefe household. I'm going to go way out on a limb on that. Let me ask you, let's talk about NASA for a minute, unfinished business there. What's the biggest piece of unfinished business that you have on your plate, you think, as you leave?

O'KEEFE: I think the challenge you refer to up front is the beginnings of the president's vision for space exploration starts with return to flight. And rather than being a closing chapter in my tenure, it ought to be the opening chapter and a successor's opportunity to begin implement the president's vision in a way that begins with that first step and all the way through the success of stage seven and the president formulated a really exciting vision for exploration and announced that just earlier this year. We've secured the congressional support for it, the appropriation during a very difficult budget year and so the foundation is set. The opportunity is there to begin and that first major critical step is return to flight for the space shuttle and again, rather than being a closing chapter on my time, it ought to be an opening, exciting chapter in a successor's opportunity to begin to work through each of those phases.

O'BRIEN: NASA remains committed though not just to return to flight but to fly the shuttle perhaps in excess of 25 times to finish out that space station. It's a big commitment, a lot of risk involved in that and to the extent that kind of takes your eye off the ball on that larger goal of a return to the moon and perhaps on to Mars, you think it would be better to scale down that commitment to the space station?

O'KEEFE: Oh, no, quite the contrary Miles. What we've come to realize in these last couple of years, in the wake of the Columbia tragedy sadly, is the challenges of operating the international space station and the manner in which we've had to do so has taught us an awful lot about expeditionary exploration efforts, long duration space flight. And so as a consequence completing the international space station is going to tell us an awful lot more about the human physiology, the research and the expeditionary kinds of techniques for long duration efforts for up to six to eight to nine months of activities and how to sustain that operationally.

We're learning a whole lot right now and completing the station will give us a chance, I think, in the broader objectives in that first step of accomplishing the vision, returning to flight, completing the space station, then going on beyond back to the moon, all those are in logical sequence. By the way, the president directed that strategy. So it really makes more sense today than ever before and it really has a synergy that really puts all those pieces together that makes it informing what those exploration objectives can be in the future.

O'BRIEN: Sean, I'm going to get in deep trouble here, but just a quick answer, if you would. I know what the low point obviously Columbia of your tenure was. What in a word was the high point?

O'KEEFE: Oh, clearly the president's articulation of the vision. I think that was a very difficult effort, strategy, pulled together and when he articulated it and made a choice of that himself, I think articulated that view and laid out that strategy, it gave extreme excitement I think within this agency to pursue those exploration objectives.

O'BRIEN: Sean O'Keefe, the tenth NASA administrator on his way out over the next few months. We'll see you around and we wish you well, though, in your academic endeavors and we wish you and your family continued success as you head back home.

O'KEEFE: Thank you, Miles. Appreciate it very much.

O'BRIEN: Kyra?

PHILLIPS: A quick break. We'll be right back.

(COMMERCIAL BREAK)

O'BRIEN: This is a pet peeve of mine. This (INAUDIBLE) thing, this happens in the O'Brien household quite frequently. I'm not going to mention names.

PHILLIPS: We pay more for late fees than we do the movies. We end up paying like triple. We could have gone out.

O'BRIEN: This is how Blockbuster stays in business with those silly late fees. That will be $83.64. Wait a minute! I could have bought 10 DVDs.

PHILLIPS: Rhonda, is that going to change?

RHONDA SCHAFFLER, CNN CORRESPONDENT: You guys are on to something there. By the way, I've never paid a late fee in my entire life.

O'BRIEN: We're not buying what you are selling, Rhonda.

SCHAFFLER: I don't know what you guys are thinking. You've got to return these things on time and because you don't, Kyra and Miles, Blockbuster has come up with a little plan. Blockbuster is of course the nation's largest video rental chain. It's getting rid of late fees for videos, DVDs and video games beginning January 1st. Sounds like a great thing. It is not a free ride. Renters will get a one- week grace period after the due date and if the game or movie isn't returned by then, Blockbuster automatically will charge the customer for the full price of the item, minus the rental fee.

Now, if you don't want to be charged, you can still return the title within 30 days and get most of your money back except for a restocking fee. Blockbuster says late fees could have brought in 250 to $300 million next year. But now the company expects more customers to come into stores because late fees will be history. They hope that increased traffic will offset any losses. And of course, there will be those new charges for the items not returned.

Now, as for what is happening here on Wall Street today, stocks moving higher after the Fed announces raising interest rates by a quarter point. Dow industrials up 43 points. Nasdaq up more than half a percent. That is all the latest news from Wall Street. Kyra, Miles, I'll see you around.

PHILLIPS: All right, Rhonda, we look forward to it.

O'BRIEN: That wraps up this Tuesday edition of LIVE FROM.

PHILLIPS: Now to take us through the next hour, political headlines, Judy Woodruff and "INSIDE POLITICS." Hi, Judy.

JUDY WOODRUFF, CNN ANCHOR, "JUDY WOODRUFF'S INSIDE POLITICS": Hi, Kyra, hello, thanks to you and Miles. Just ahead, doubts about defense. Secretary Rumsfeld finds himself in the cross hairs of criticism from a senior senator. But will it have an effect on his future?

And overseas opinion, newly released polls show how Europeans view President Bush. Will he get a second look in his second term?

INSIDE POLITICS begins in just a moment.

(COMMERCIAL BREAK)

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Aired December 14, 2004 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: In the news now, the Fed pushes up interest rates, expected rate hike announced within the last hour. You saw it here live. The Fed boosted a key short-term interest rate by one quart percentage point, fifth rate increase this year for those of you keeping score at home.
The net tightens on al Qaeda. In Afghanistan, security forces captured the former personal security chief to Taliban leader Mullah Mohammed Omar. Today provincial officials told Reuters - that's a wire service -- they arrested the former aide as he traveled to Kandahar. Officials hope the arrest will help U.S. and Afghan forces track down Mullah Omar who is one of the most wanted fugitives in the war on terror.

Justice will be served. With those words Iraq's interim Prime Minister Ayad Allawi made a surprise announcement today that Iraqi war crime trials will begin next week. Allawi didn't mention which cases might be tried first. Saddam Hussein and 11 high-profile members of his regime face charges. The list includes former deputy Prime Minister Tariq Aziz and the man known as chemical Ali.

And in Washington, the Presidential Medal of Freedom awarded to three men central to the Iraq policy of President Bush. Retired General Tommy Franks, former CIA Director George Tenet. We got this all backwards. That's Franks. Before that was Paul Bremer awarded the nation's highest civilian honor. There's Tenet. Supposedly the words and the pictures are supposed to go together here. Sorry, folks, but you got the idea. They were involved in what the president calls pivotal roles in great events.

KYRA PHILLIPS, CNN ANCHOR: First this hour, a political bombshell in Baghdad, a surprise announcement from Iraq's interim leader, Ayad Allawi. Allawi says that his government is ready to go ahead with war crimes trials for Saddam Hussein 11 of his former henchman.

(BEGIN VIDEO CLIP)

AYAD ALLAWI, IRAQ INTERIM PRIME MINISTER: 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: It's widely believed that Saddam Hussein will not be the first to stand trial. Then, again, up until today the trials were not expected for another year or more. Also today in Baghdad another deadly bombing near the seat of political power. A car bomb exploded at a checkpoint leading to the heavily fortified Green Zone killing at least two people. A suicide bombing in nearly the same spot killed eight people yesterday.

O'BRIEN: With the Kerik nomination having crashed and burned, the Bush administration is casting out nets for a homeland security secretary. With the latest on that, we go to our White House correspondent CNN's Suzanne Malveaux. Suzanne, I assume they are doing a little extra vetting this go around?

SUZANNE MALVEAUX, WHITE HOUSE CORRESPONDENT: You can bet that it really is going to be a very thorough vetting process. We saw the president publicly in the East Room earlier today. That's where he was presenting those Medals of Freedom to those -- the highest honor that he can give to a civilian, to three who were critical when it comes to the Iraq war. But behind the scenes privately of course, the Bush administration continues to search for a Homeland Security Department secretary.

Some of those that are being mentioned as possible front runners, Asa Hutchinson. He's the undersecretary for border and transportation security. He's lead more than 110,000 employees basically responsible for coordinating enforcement activities along the borders, the waterways, transportation and immigration.

Another name that is coming up, keeps coming up as well is Fran Townsend. She is the adviser, homeland security adviser to the president. She reports to Mr. Bush on policy matters as well as combating terrorism. She came to the White House from the U.S. Coast Guard. She was working on intelligence matters there. She also served some 13 years at the Justice Department.

And, perhaps, the most interesting name that keeps resurfacing particularly on the Hill for bipartisan support is Senator Joe Lieberman, the Democrat from Connecticut, most notably Al Gore's running mate back in 2000. He is getting a lot of support, Republicans and Democrats alike. As you know, he was one of the authors of the Homeland Security Department legislation which actually created that mammoth department. He has some very interesting, personal appealing background being the child of survivors of the Holocaust coming to the United States to escape Hitler's regime, very much talked about. Democratic sources saying that he indeed would interested in such an offer. The Republican sources saying that the president is at least open to looking at a Democrat in this position -- Miles.

O'BRIEN: Suzanne Malveaux at the White House. Thank you very much -- Kyra.

PHILLIPS: On the CNN security watch, we have all heard the concerns about the possibility terrorists might try to strike with nuclear, chemical, or biological weapons. But a new report finds U.S. states still have a long way to go to prepare for a bio-terror attack. The nonpartisan Trust for America's Health ranked the states on a scale of one to 10, with 10 being the most prepared. Only six states got an eight or better: Florida, North Carolina, Minnesota, Nebraska, New Hampshire and Virginia. More than two thirds of all states received scores of six or less including the most populous state, California, which got a five. The report says that while progress has been made, basic bio-terrorism detection, diagnosis and response capabilities are lacking.

Nearly 10 years ago, the whole world awoke to the dangers of chemical terrors when a doomsday cult launched a shocking attack in Japan. CNN's Bill Hemmer is reporting this week from Tokyo. He spoke with a noted expert on the lessons learned that scary day.

(BEGIN VIDEOTAPE)

DAVID KAPLAN, AUTHOR: Aum was a doomsday set that was intent on jump starting the apocalypse.

BILL HEMMER, CNN CORRESPONDENT (voice-over): On March 20, 1995, this group of homegrown terrorists launched an attack on Tokyo's subway system, the world's busiest, using deadly Sarin nerve gas. Twelve people were killed, more than 5,000 injured. And Japan's image, as a safe haven from terror was shattered.

KAPLAN: Ohm's attacks paralyzed Japanese society. They declared a day of fear, which paralyzed much of Tokyo. People didn't go out of the houses. It really was quite amazing what this one doomsday sect was able to accomplish in a pretty sophisticated society.

HEMMER: David Kaplan, author of "The Cult at the End of the World" says Aum Shin Rikyo attack sounded alarms in Tokyo and in Washington.

KAPLAN: The 9/11 Commission in the United States talked about a failure of imagination, why we didn't see 9/11 coming. This attack, the subway attack was almost 9/11. And so it's been a huge wake-up call not just for the Japanese but for people everywhere. The terrorists can get a hold of these terribly destructive weapons.

HEMMER: Although it's not clear what, if anything, al Qaeda may have learned from Aum, Japan nearly 10 years after the Sarin gas attack could become a target again.

KAPLAN: Japan's been part of the coalition that's gone into Iraq. Japanese are strong backers of elements of U.S. foreign policy that have upset radical Muslims around the world.

HEMMER: And Kaplan says counter terrorism officials believe another attack on Japanese soil is a case of not if, but when.

KAPLAN: What I think the big danger is now that Ohm is pretty well contained, is what comes next? What is on the boards heading our way that we just don't see. We didn't see Oklahoma City coming. We didn't see 9/11 coming. We didn't see the Tokyo subway attack. What is next?

(END VIDEOTAPE)

PHILLIPS: And you can join Bill Hemmer tomorrow on "AMERICAN MORNING" live from Japan. He'll look at the alliance between Tokyo and the United States. "AMERICAN MORNING" begins every day at 7:00 Eastern.

O'BRIEN: Well, 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 on Laci Peterson and her son Conner when they made the decision. Scott Peterson's lawyer is 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 hurts too many people for no reason. But justice was served.

MARK GERAGOS, SCOTT PETERSON'S ATTORNEY: Obviously, we're very disappointed. Obviously we plan on pursuing every and all appeals, motions for new trial and everything else. All I'd ask is that you respect Jackie and Lee's and the family's privacy for the next week or so.

(END VIDEO CLIP)

PHILLIPS: 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 26 years ago. Ten people have been 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.

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

(BEGIN VIDEO CLIP)

RICHELLE NICE, PETERSON JUROR: 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 his life 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, 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 of what was going on. That's what I saw.

STEVE CAROOSI, 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 he was innocent, he lost his wife and his child and he didn't seem to phase him. And while that was going on, they were looking for his wife and his child, he's romancing a girlfriend. That doesn't make sense to me, at all.

(END VIDEO CLIP)

PHILLIPS: And tonight on "LARRY KING LIVE" hear from the foreman of the jury in the Scott Peterson case. That's at 9:00 p.m. Eastern, 6:00 Pacific, right here on CNN.

O'BRIEN: His job initially was to get the space agency back on financial solid ground. But his three years at NASA really wasn't a lot different than that. It was kind of a wild ride. Sean O'Keefe is giving his first interview since announcing his resignation yesterday and you'll see it on LIVE FROM only if you stay tuned.

(COMMERCIAL BREAK)

JACQUI JERAS, CNN METEOROLOGIST: Hello everyone. I'm meteorologist Jacqui Jeras. A chilly one yet again for today as high pressure dominates the weather across the eastern two thirds of the country. In addition to the cold temperature, there is snow blowing across the great lakes and parts of the northeast again today as the cold air blows over that warmer lake water.

Across the west, a little bit breezy to the southwest but it looks beautiful with plenty of sunshine and into the Pacific northwest, a little bit of wet weather and a little bit of snow into the higher elevations but not a major storm, 43 degrees overnight in Seattle, 28 degrees in Denver and look at those freezing temperatures dropping all the way down to the Gulf Coast, even looking at freezing temperatures down into Orlando and Tampa tonight. LIVE FROM continues right after this.

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O'BRIEN: The man who has overseen the space program through the Columbia shuttle disaster and its aftermath ready to take on some new challenges now. NASA Administrator Sean O'Keefe joining us from Washington from NASA headquarters for his interview since announcing his resignation yesterday. Sean, good to see you. Thanks for joining us.

SEAN O'KEEFE, NASA ADMINISTRATOR: Same to you, Miles. How are you doing?

O'BRIEN: I'm well. You told us repeatedly that you were interested in sticking around until return to flight, when the shuttle flies again. That's been delayed a little bit. Is that why you've decided you've got to leave now?

O'KEEFE: It's just a real challenge. I would love to serve this president and this administration for as long as he would have me if I can manage to find a way to do so. It's been a really inspiring team to be a part of and the president himself is someone I'm very, very loyal to. As a consequence this is a hard decision for that alone.

O'BRIEN: But why now then?

O'KEEFE: It's a great opportunity. I think it's was an interest been expressed by LSU and they are graciously considering me as a candidate. I look forward to running that to conclusion and seeing where it goes. But one way or another I really do need to move on for my family and it's an opportunity to continue to do that, potentially go back home and do some things that I think would still be involved in public service.

O'BRIEN: We should tell our viewers it's the job of chancellor of Louisiana State University which would afford you a little nicer lifestyle, better hours, much better pay, all the good things that you need to enjoy your family. We have a little opportunity to spend some time with your family a little more than a year ago. I know you don't get much time with them. You have three children, the oldest hopefully going off to Cornell. She's much smarter than you and I combined. And I'm curious about the sacrifices people like you make in order to do your jobs.

O'KEEFE: It's difficult. As we were chatted about before, Miles, our children humble us every single day. The first of three on the way to college. That becomes a time when you got to really reflect a little bit about providing for them. And one of the primary things I had as an advantage in life is my parents, I still don't know how they did it, put me all the way through college and graduate school. I didn't have a dime worth of debt when I came out and I owe that to my kids just the same way they seem to provide for me and my brothers and sisters. So it's an opportunity I think to try to give something back.

O'BRIEN: I'm going to guess it's a popular decision in the O'Keefe household. I'm going to go way out on a limb on that. Let me ask you, let's talk about NASA for a minute, unfinished business there. What's the biggest piece of unfinished business that you have on your plate, you think, as you leave?

O'KEEFE: I think the challenge you refer to up front is the beginnings of the president's vision for space exploration starts with return to flight. And rather than being a closing chapter in my tenure, it ought to be the opening chapter and a successor's opportunity to begin implement the president's vision in a way that begins with that first step and all the way through the success of stage seven and the president formulated a really exciting vision for exploration and announced that just earlier this year. We've secured the congressional support for it, the appropriation during a very difficult budget year and so the foundation is set. The opportunity is there to begin and that first major critical step is return to flight for the space shuttle and again, rather than being a closing chapter on my time, it ought to be an opening, exciting chapter in a successor's opportunity to begin to work through each of those phases.

O'BRIEN: NASA remains committed though not just to return to flight but to fly the shuttle perhaps in excess of 25 times to finish out that space station. It's a big commitment, a lot of risk involved in that and to the extent that kind of takes your eye off the ball on that larger goal of a return to the moon and perhaps on to Mars, you think it would be better to scale down that commitment to the space station?

O'KEEFE: Oh, no, quite the contrary Miles. What we've come to realize in these last couple of years, in the wake of the Columbia tragedy sadly, is the challenges of operating the international space station and the manner in which we've had to do so has taught us an awful lot about expeditionary exploration efforts, long duration space flight. And so as a consequence completing the international space station is going to tell us an awful lot more about the human physiology, the research and the expeditionary kinds of techniques for long duration efforts for up to six to eight to nine months of activities and how to sustain that operationally.

We're learning a whole lot right now and completing the station will give us a chance, I think, in the broader objectives in that first step of accomplishing the vision, returning to flight, completing the space station, then going on beyond back to the moon, all those are in logical sequence. By the way, the president directed that strategy. So it really makes more sense today than ever before and it really has a synergy that really puts all those pieces together that makes it informing what those exploration objectives can be in the future.

O'BRIEN: Sean, I'm going to get in deep trouble here, but just a quick answer, if you would. I know what the low point obviously Columbia of your tenure was. What in a word was the high point?

O'KEEFE: Oh, clearly the president's articulation of the vision. I think that was a very difficult effort, strategy, pulled together and when he articulated it and made a choice of that himself, I think articulated that view and laid out that strategy, it gave extreme excitement I think within this agency to pursue those exploration objectives.

O'BRIEN: Sean O'Keefe, the tenth NASA administrator on his way out over the next few months. We'll see you around and we wish you well, though, in your academic endeavors and we wish you and your family continued success as you head back home.

O'KEEFE: Thank you, Miles. Appreciate it very much.

O'BRIEN: Kyra?

PHILLIPS: A quick break. We'll be right back.

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O'BRIEN: This is a pet peeve of mine. This (INAUDIBLE) thing, this happens in the O'Brien household quite frequently. I'm not going to mention names.

PHILLIPS: We pay more for late fees than we do the movies. We end up paying like triple. We could have gone out.

O'BRIEN: This is how Blockbuster stays in business with those silly late fees. That will be $83.64. Wait a minute! I could have bought 10 DVDs.

PHILLIPS: Rhonda, is that going to change?

RHONDA SCHAFFLER, CNN CORRESPONDENT: You guys are on to something there. By the way, I've never paid a late fee in my entire life.

O'BRIEN: We're not buying what you are selling, Rhonda.

SCHAFFLER: I don't know what you guys are thinking. You've got to return these things on time and because you don't, Kyra and Miles, Blockbuster has come up with a little plan. Blockbuster is of course the nation's largest video rental chain. It's getting rid of late fees for videos, DVDs and video games beginning January 1st. Sounds like a great thing. It is not a free ride. Renters will get a one- week grace period after the due date and if the game or movie isn't returned by then, Blockbuster automatically will charge the customer for the full price of the item, minus the rental fee.

Now, if you don't want to be charged, you can still return the title within 30 days and get most of your money back except for a restocking fee. Blockbuster says late fees could have brought in 250 to $300 million next year. But now the company expects more customers to come into stores because late fees will be history. They hope that increased traffic will offset any losses. And of course, there will be those new charges for the items not returned.

Now, as for what is happening here on Wall Street today, stocks moving higher after the Fed announces raising interest rates by a quarter point. Dow industrials up 43 points. Nasdaq up more than half a percent. That is all the latest news from Wall Street. Kyra, Miles, I'll see you around.

PHILLIPS: All right, Rhonda, we look forward to it.

O'BRIEN: That wraps up this Tuesday edition of LIVE FROM.

PHILLIPS: Now to take us through the next hour, political headlines, Judy Woodruff and "INSIDE POLITICS." Hi, Judy.

JUDY WOODRUFF, CNN ANCHOR, "JUDY WOODRUFF'S INSIDE POLITICS": Hi, Kyra, hello, thanks to you and Miles. Just ahead, doubts about defense. Secretary Rumsfeld finds himself in the cross hairs of criticism from a senior senator. But will it have an effect on his future?

And overseas opinion, newly released polls show how Europeans view President Bush. Will he get a second look in his second term?

INSIDE POLITICS begins in just a moment.

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