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Congress Briefed on Security Threats; Syria, Iran to Team Up; Scotland Yard Using Computer Technology to Examine Princess Di Crash Site

Aired February 16, 2005 - 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.


(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Can you assure the American people that the material missing from Russian nuclear sites has not found its way into terrorist hands?

PORTER GOSS, CIA DIRECTOR: No, I can't make that assurance.

(END VIDEO CLIP)

KYRA PHILLIPS, CO-HOST: Loose nukes, al Qaeda threats and the possibility of an attack on American soil. Your security is the talk of the town in Washington today.

MILES O'BRIEN, CO-HOST: Will the hockey season be put on ice? Live pictures from New York where the National Hockey League is moments away from an announcement about whether the season will be scrapped.

PHILLIPS: Coffee lovers perk up. Cancer researchers have found one more reason for you to grab that jolt of Joe.

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

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

PHILLIPS: Well, they don't call them hot spots for nothing. Hours after the fact, theories surrounding a mysterious explosion in southwest Iran range from friendly fire to a falling fuel tank to dam construction. One official denies that there was any explosion at all.

Now, the world takes note because a Russian-built nuclear power plant sits 100 miles to the south. Iran is crystal clear, rather, on one point: the blast, if it happened, was not an attack from abroad.

In Beirut, a volcanic eruption of sorrow and anger surrounding the funeral of former Prime Minister Rafik Hariri. The billionaire businessman turned political icon was assassinated Monday in a bombing that reignited popular resistance to Syrian domination. It also stirred up long-simmering tensions between Syria and the Bush administration. In Pyongyang, North Korea, a choreographed show of affection for great leader Kim Jong-Il on his 63rd birthday. The diplomatic dance over North Korea's nuclear program at a standstill. Pyongyang radio likened him to the porcupine that pricks the American tiger.

O'BRIEN: Well, if that image isn't disturbing enough, consider some of the nightmare scenarios being bandied about on Capitol Hill. America's premier terror defenders are briefing the Senate Intelligence Committee on things that keep them up at night.

And CNN's Joe Johns is listening in -- Joe.

JOE JOHNS, CNN CORRESPONDENT: Miles, the CIA director and the FBI director on Capitol Hill today, giving their assessment of the threat to the United States.

CIA Director Porter Goss asserting the threat by attack by a radical terror group is still imminent, he says, but more likely to be low tech in nature, such as a car bombing, which is very popular these days, though weapons of mass destruction are not being ruled out.

(BEGIN VIDEO CLIP)

GOSS: Al Qaeda is intent on finding ways to circumvent U.S. security enhancements to strike Americans in the homeland, one.

No. 2, it may be only a matter of time before al Qaeda or other group attempts to use chemical, biological, radiological or nuclear weapons. We must focus on that.

Three, al Qaeda is only one facet of the threat from a broader Sunni Jihadist movement.

And four, the Iraq conflict, while not a cause of extremism, has become a cause for extremists.

(END VIDEO CLIP)

JOHNS: Meanwhile, the secretary of state also on the Hill today, once again pushing the administration's funding proposals, as well as touching on her decision to re-call the U.S. ambassador to Syria, after the assassination of the former prime minister in Lebanon.

Let's hear what she had to say.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: First, to say that the most important call is for an investigation of what has happened there. We don't know what the responsibility is.

Nonetheless, the -- as resolution 1559 noted, the Syrian presence and the Syrian involvement in Lebanese affairs has, of course, created a destabilized environment in Lebanon. And that's why there has been a call for the Syrians to -- to stop that interference and to remove their forces, because it is a destabilizing environment in what is a developing democratic process in Lebanon.

(END VIDEO CLIP)

JOHNS: Dr. Rice did not accuse Syria of involvement in the death of Rafik Hariri. However, Syria, today said it does remain ready to work with the United States to ease tensions between the two countries -- Miles.

O'BRIEN: Joe Johns on the Hill. Thanks very much -- Kyra.

PHILLIPS: They stand against America. Iran and Syria declared today that they'll form a united front in light of unspecified but clearly understood challenges facing both nations. The two are neck and neck among states the U.S. considers oppressive at home and a menace to other neighbors.

Joining us with some insights, international security analyst Jim Walsh of the Kennedy School of Government at Harvard.

Good to see you, Jim.

JIM WALSH, INTERNATIONAL SECURITY ANALYST: Good to see you, Kyra.

PHILLIPS: All right. Iran, Syria coming forward, saying we're upgrading our political relationship, does this worry you?

WALSH: It doesn't worry me. In some ways it would be expected. From a balance of power perspective, we're hassling both Syria and Iran. So now they have something in common, some basis for cooperation. And so they're hoping that perhaps by helping each other out, they can help shield themselves from some of the U.S. pressure they're likely to encounter.

PHILLIPS: Well, let's talk about this "helping each other out," and looking at the assassination on Rafik Hariri, his service today -- his memorial service today, see the coffin going through -- a political icon, no doubt. Now, take into account this relationship between Syria and Iran. What if Syria was involved? Could Syria have been involved? And did Iran know?

WALSH: Well, those are all good questions. And I wish I could answer any single one of them, but I can't.

I think you're right to point to the timing here. We have this announcement of this united front or whatever it is. Again, not a treaty, but some sort of verbal upgrading of their relationship, in the same week where there's this assassination.

And it raises the very questions that you have pointed to. Did the Iranians know about this in advance? Did Syrians know about it in advance? Or did this happen, in some ways, because of the assassination, because they thought there would be pressure put on Syria. And Iran sort of opportunistically goes to sir were and says, "You need a friend right now, buddy. Let's get together, upgrade our relationship." And at this point, we simply don't know.

PHILLIPS: We talked a lot about the threat of North Korea. And we talk about Iraq, Afghanistan. We talk about Iran. But we haven't talked a lot about Syria, Syria and Lebanon, terrorism in Lebanon. Should we focus more on that?

WALSH: Well, you know, when President Bush offered that infamous line, you know, the axis of evil, and the three countries were Iraq, and North Korea and Iran, what they left out, the sort of first runner up, if you will, in this beauty pageant was Syria.

People have been talking about Syria for a long time. The U.S./Syrian relationship has gone up and down and up and down. They helped us after 9/11. They may have helped us with al Qaeda. But increasingly, the U.S. has grown impatient with Syria. There's rumors that Syria has -- people in Syria are providing cash and/or bodies to the insurgents.

But I think in the big picture, it's worth keeping in mind that Syria is not where the center of gravity is in the region. It's not the most important country. It's not the biggest country. It's important for the future of Lebanon, but it's a small country in the Arab and Muslim world. The real action is with other countries.

PHILLIPS: So when we look at what happened in Lebanon, we look at the assassination on Rafik Hariri, this is more about a localized problem, a civil war, if you will -- we know the history there in Lebanon -- versus an international threat of terrorism?

WALSH: Well, that's right. I think that's exactly right. This assassination, whoever is responsible, and there are any number of possibilities, involves local politics, regional politics.

This is one of those stories where the map really tells what's going on here. If you look at a map, you'll see that Lebanon is essentially engulfed by Syria. And Syria has a lot of influence on what happens there because it has the 13,000 troops. And so it has -- and because it's on Syria's border, it wants to have an influence there.

So I think this is more about backyard politics, regional politics, than it is about the global war on terrorism.

PHILLIPS: Jim Walsh, Harvard University. Thanks, Jim.

WALSH: Thank you, Kyra.

PHILLIPS: CNN, as you know, is committed to providing the most reliable coverage of news that affects your security, so stay tuned to CNN for the latest information day and night.

O'BRIEN: OK. There's slap shot. There's the Mighty Ducks. If you're really desperate, there's "Friday the 13th," you know, hockey mask. Anyway, we're trying to come up with some movies featuring guys in hockey masks, because thanks to a stalled salary face-off, you can consider this year's entire NFL season iced. Put a fork in it.

NHL commissioner Gary Bettman did just that a few moments ago. These are live pictures as he addresses reporters. Let's listen in on some of the Q&A.

GARY BETTMAN, NHL COMMISSIONER: ... the union yesterday, by 6 p.m., and in one additional last-ditch effort to try and save the season, I gave an offer to the union of another $2.5 million.

We were stretching, stretching, to get there, because, again, we were projecting that, under that deal, we would probably lose money for the next two years. Nevertheless, we wanted to try and save the season.

When the union came back at $49 million, it was clear that there was no basis upon which we could make a deal.

The other thing -- and I apologize for the length of the answer, but this -- this is pretty complicated and intense stuff. Six and a half million-dollar difference. What that does is, if you raise the cap by $6.5 million, the bar, particularly because the players were insisting upon, and we agreed, to arbitration, now gets raised for everybody, by $6.5 million.

So you have to multiply the $6.5 million by 30. And that means it's about a $200 million difference. We were not talking about some small difference at all. We were still very far apart.

Perhaps if the union had, last summer, or six weeks ago, said, "OK, we would consider a cap under some circumstances," we might have had more time to deal with this.

One other thing, and then I'll take the next question. Is this is a very difficult negotiation to have in collective bargaining, when the party on the other side doesn't know your economics.

The union has constantly said they don't trust our numbers. We've asked them for five years to audit our books, and they've refused. We've asked them -- Arthur Levitt asked them to meet with him twice to go over what he had done.

And if -- if the party you're negotiating over in terms of how to create a business structure that works doesn't know your numbers, doesn't acknowledge knowledge your numbers, it's pretty difficult to come to an agreement on what those numbers should be and what kind of economic system will work.

O'BRIEN: All right. That's Gary Bettman. A lot of hockey fans wondering where to go at this moment, as it is now official. The NHL season is kaput. That salary cap idea put the owners and the players about $7 million apart. That was not a thing that could be worked out within the time frame allotted. And as such, hockey fans will have to look elsewhere for entertainment -- Kyra.

PHILLIPS: Straight ahead, returning to the place where Princess Diana died. This time, investigators take some special equipment with them. We're going to show you what they hope to do with it just ahead.

And the miles might cost you. A controversial idea to tax drivers by the mile has some privacy experts wanting to put the brakes on it.

And do these polar bears look skinny to you? Scientists say they are thinner and the world needs to do something about it to fatten them up. Find out what, straight ahead.

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

(COMMERCIAL BREAK)

(WEATHER REPORT)

O'BRIEN: Authorities in Pueblo, Colorado, are beginning the early stages of an investigation into a small plane crash there.

A Cessna Citation, 560. That's an executive twin-engine jet, crashed apparently on approach just east of the airport there, Pueblo, Colorado, a little bit south of Colorado Springs.

There you see some tape which just came in a few minutes ago showing what appears to be some burned wreckage as a result of this.

According to our wires desk here, Circuit City stores confirms that a plane registered to that company crashed there. The plane carried eight passengers, four of whom were employees of the company, Circuit City. No officers of the company were on board. The company will not make any further comment, according to our folks here.

Let me just show you quickly, Pueblo, Colorado, airport sits at about 4,700 feet, as we say, not too far away from Colorado Springs.

I just want to show you the weather at the time of this. Bottom line down here, 600-feet ceiling, that's pretty low, but not too low. And visibility about six statute miles. That should be well within the capability on this particular approach they were flying.

This is a lot of gobbledy-gook, but basically what that show is the approach, which would be coming in from the east to the west, runway 26 right, the instrument landing system, which indicates it would be legal to fly that approach with a ceiling of 300 feet and three quarters mile visibility.

However, there were a lot of weather reports in the area at the time that showed worsening weather, in some cases, freezing mist or freezing fog. Not a good weather picture at the time. Obviously, very early in this investigation to say anything definitive.

But once again, you have a Cessna Citation down about three miles east of the Pueblo, Colorado, airport. A plane operated by Circuit City stores. No officers of the company on board. Eight passengers, we're told. Eight fatalities. We're watching it closely for you -- Kyra. PHILLIPS: Scotland Yard investigators are visiting Paris, but it's no pleasure trip. Armed with new and sophisticated machines, they're taking another look at the 1997 car crash that killed Princess Diana. Of course, high tech can't change the outcome. But CNN's Jim Bittermann says it could revise the official version of what actually happened.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice-over): In a scene played out more than once since 1997, British and French investigators were, once again, combing the site where Princess Diana died.

Equipped with lasers and special camera equipment, they blocked off the high-speed traffic lanes at about the same type of day that the accident occurred, intending to create 3-D imaging which will be used in the official coroner's inquest under way in Britain.

A Scotland Yard detective told reporters he hopes investigators will be able to determine exactly what happened, using computer technology not available at the time of the accident.

As far as the French are concerned, the case was closed back then. Blood tests revealed that the chauffeur of the limousine in which Princess Diana and her boyfriend, Dodi Fayed, were riding was high on alcohol and drugs and simply lost control of the car.

But some have continued to believe the princess' death could not have been just a routine traffic accident, that someone wanted to kill her. Among the most suspicious is Dodi Fayed's father, Mohamed al- Fayed, who was also the employer of the chauffeur.

Using both the French and British legal systems, Fayed has obsessively pursued his belief that the royal family assassinated the young couple because they disapproved of their relationship.

In part because of Fayed's insistence, and despite the fact that French courts have ruled out any plot, royal or otherwise, the British began their own investigation last year under the direction of Scotland Yard. Whatever the final cost of the elaborate British inquiry, some say it will be worth it if the talk of royal conspiracies is finally put to rest.

ROBERT JOBSON, CNN ROYAL COMMENTATOR: I'm sure after all these millions of pounds have been spent, after two very extensive investigations by the police forces of France and Great Britain, that we will discover, surprisingly, that this was a tragic accident.

BITTERMANN: With Diana's widower, Prince Charles, planning to marry his long time lover, Camilla Parker Bowles, this spring, the accident now seems a distant memory, except to those like Fayed, who royal watchers say continues to grieve over his son's death.

(on camera) Seven and a half years after the events here, all of the principals in the Diana story has moved on, except for one, who's never been able to accept that his own employees were responsible for the death of his son and the death of the princess.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

PHILLIPS: News across America now.

Hope you like yellow, because you're going to be seeing a lot of it between now and July. Lance Armstrong has decided that six consecutive wins at the Tour de France aren't enough. He announced today he's going to make a seventh attempt at cycling's top crown.

O'BRIEN: And now I've got to jump in, because Kyra doesn't like to do dog stories. A different crowd here. Every dog may have its day. But last night belonged to Carlee, the 5-year-old German Shorthaired Pointer -- pointers are the best, aren't they? Well, this particular dog won best of the show at Westminster Kennel Club. She is a beauty, and she's a great animal, great disposition. Cue Madonna: this pup knows how to vogue.

(BEGIN VIDEO CLIP)

DAVID FREI, USA NETWORK: When she went out there and threw that free stack and Michelle had her at the end...

UNIDENTIFIED MALE: What's a free stack?

FREI: It's where the dog poses on its own without any poking or prodding from the handler. And she went out there and put a free stack in the ring at the request of the judge, the crowd went nuts.

(END VIDEO CLIP)

O'BRIEN: Isn't she cute? Attention must also be paid to Carlee's handler last night, Michelle Ostermiller, the gal with the golden leash. She also guided last year's winner to a place in canine history. She's kind of the Eddie Schumacher of the Westminster Kennel Club and dog showing.

And finally, in a possible sign of cultural apocalypse, the redneck art classic, "Dogs Playing Poker." I used to own this one! I guess maybe not the original. Anyway, it fetched an enormous sum at auction last night. Actually, it was too rare original paintings from the 1903 series by Cassius Marcellus Coolidge. They went for the combined price of nearly -- get this -- $600,000. And they're not even on velvet.

PHILLIPS: Get a free stack.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, global warming. People on a tiny island in the south pacific say rising temperatures are sinking their future.

Later on LIVE FROM, family reunion. A survivor found in the ruins of the tsunami is now back in his parent's arms.

Tomorrow on LIVE FROM, he was the first black NFL quarterback, the first black NFL coach. And you probably never heard of him. But now, Fritz Pollard is headed to the Hall of Fame. We'll have the inspiring story of his career and his family's fight for recognition.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: ... in 1984 for his leadership in the battle against apartheid. And as part of CNN's anniversary series, "Then and Now," we take a look back at Desmond Tutu's legacy of inspiring nonviolent political change and how he's still guided today by the same faith and values.

(BEGIN VIDEOTAPE)

ARCHBISHOP DESMOND TUTU, HELPED END APARTHEID: Our struggle is going to succeed because it is a just struggle.

UNIDENTIFIED FEMALE: During the dark days of apartheid in South Africa, me he was the voice of hope.

TUTU: This must be the last of its kind!

UNIDENTIFIED FEMALE: Archbishop Desmond Tutu always claimed he was a leader by default, but e used his faith to inspire black South Africans to fight for freedom peacefully.

In honor of his battle against apartheid, Tutu won the Nobel Peace Prize in 1984. And when apartheid crumbled 10 years later, President Nelson Mandela pointed to Tutu to lead the Truth and Reconciliation Commission, to help South Africa deal with the crimes committed during apartheid.

TUTU: We must face this ghastly past and not pretend it never happened.

UNIDENTIFIED FEMALE: Often, the truth of the past was painful, even reducing Tutu to tears.

Now, age 73, Tutu is still outspoken on issues around the world, from war to crimes committed in the name of God.

TUTU: God is not a Christian. Nor is God a Muslim. All -- all are God's children.

UNIDENTIFIED FEMALE: Despite a battle with prostate cancer in 1987, Tutu continues to inspire nonviolent political change around the world and works with the peace center that bears his name.

(END VIDEOTAPE)

(COMMERCIAL BREAK) PHILLIPS: Federal Reserve Chairman Alan Greenspan is delivering his semiannual testimony before Congress today. Wall Street, Main Street and Washington all want to know what he has to say about the state of the economy.

David Haffenreffer joins us live from the New York Stock Exchange for the breakdown of green-speak.

Hi, David.

(STOCK REPORT)

(COMMERCIAL BREAK)

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Aired February 16, 2005 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Can you assure the American people that the material missing from Russian nuclear sites has not found its way into terrorist hands?

PORTER GOSS, CIA DIRECTOR: No, I can't make that assurance.

(END VIDEO CLIP)

KYRA PHILLIPS, CO-HOST: Loose nukes, al Qaeda threats and the possibility of an attack on American soil. Your security is the talk of the town in Washington today.

MILES O'BRIEN, CO-HOST: Will the hockey season be put on ice? Live pictures from New York where the National Hockey League is moments away from an announcement about whether the season will be scrapped.

PHILLIPS: Coffee lovers perk up. Cancer researchers have found one more reason for you to grab that jolt of Joe.

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

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

PHILLIPS: Well, they don't call them hot spots for nothing. Hours after the fact, theories surrounding a mysterious explosion in southwest Iran range from friendly fire to a falling fuel tank to dam construction. One official denies that there was any explosion at all.

Now, the world takes note because a Russian-built nuclear power plant sits 100 miles to the south. Iran is crystal clear, rather, on one point: the blast, if it happened, was not an attack from abroad.

In Beirut, a volcanic eruption of sorrow and anger surrounding the funeral of former Prime Minister Rafik Hariri. The billionaire businessman turned political icon was assassinated Monday in a bombing that reignited popular resistance to Syrian domination. It also stirred up long-simmering tensions between Syria and the Bush administration. In Pyongyang, North Korea, a choreographed show of affection for great leader Kim Jong-Il on his 63rd birthday. The diplomatic dance over North Korea's nuclear program at a standstill. Pyongyang radio likened him to the porcupine that pricks the American tiger.

O'BRIEN: Well, if that image isn't disturbing enough, consider some of the nightmare scenarios being bandied about on Capitol Hill. America's premier terror defenders are briefing the Senate Intelligence Committee on things that keep them up at night.

And CNN's Joe Johns is listening in -- Joe.

JOE JOHNS, CNN CORRESPONDENT: Miles, the CIA director and the FBI director on Capitol Hill today, giving their assessment of the threat to the United States.

CIA Director Porter Goss asserting the threat by attack by a radical terror group is still imminent, he says, but more likely to be low tech in nature, such as a car bombing, which is very popular these days, though weapons of mass destruction are not being ruled out.

(BEGIN VIDEO CLIP)

GOSS: Al Qaeda is intent on finding ways to circumvent U.S. security enhancements to strike Americans in the homeland, one.

No. 2, it may be only a matter of time before al Qaeda or other group attempts to use chemical, biological, radiological or nuclear weapons. We must focus on that.

Three, al Qaeda is only one facet of the threat from a broader Sunni Jihadist movement.

And four, the Iraq conflict, while not a cause of extremism, has become a cause for extremists.

(END VIDEO CLIP)

JOHNS: Meanwhile, the secretary of state also on the Hill today, once again pushing the administration's funding proposals, as well as touching on her decision to re-call the U.S. ambassador to Syria, after the assassination of the former prime minister in Lebanon.

Let's hear what she had to say.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: First, to say that the most important call is for an investigation of what has happened there. We don't know what the responsibility is.

Nonetheless, the -- as resolution 1559 noted, the Syrian presence and the Syrian involvement in Lebanese affairs has, of course, created a destabilized environment in Lebanon. And that's why there has been a call for the Syrians to -- to stop that interference and to remove their forces, because it is a destabilizing environment in what is a developing democratic process in Lebanon.

(END VIDEO CLIP)

JOHNS: Dr. Rice did not accuse Syria of involvement in the death of Rafik Hariri. However, Syria, today said it does remain ready to work with the United States to ease tensions between the two countries -- Miles.

O'BRIEN: Joe Johns on the Hill. Thanks very much -- Kyra.

PHILLIPS: They stand against America. Iran and Syria declared today that they'll form a united front in light of unspecified but clearly understood challenges facing both nations. The two are neck and neck among states the U.S. considers oppressive at home and a menace to other neighbors.

Joining us with some insights, international security analyst Jim Walsh of the Kennedy School of Government at Harvard.

Good to see you, Jim.

JIM WALSH, INTERNATIONAL SECURITY ANALYST: Good to see you, Kyra.

PHILLIPS: All right. Iran, Syria coming forward, saying we're upgrading our political relationship, does this worry you?

WALSH: It doesn't worry me. In some ways it would be expected. From a balance of power perspective, we're hassling both Syria and Iran. So now they have something in common, some basis for cooperation. And so they're hoping that perhaps by helping each other out, they can help shield themselves from some of the U.S. pressure they're likely to encounter.

PHILLIPS: Well, let's talk about this "helping each other out," and looking at the assassination on Rafik Hariri, his service today -- his memorial service today, see the coffin going through -- a political icon, no doubt. Now, take into account this relationship between Syria and Iran. What if Syria was involved? Could Syria have been involved? And did Iran know?

WALSH: Well, those are all good questions. And I wish I could answer any single one of them, but I can't.

I think you're right to point to the timing here. We have this announcement of this united front or whatever it is. Again, not a treaty, but some sort of verbal upgrading of their relationship, in the same week where there's this assassination.

And it raises the very questions that you have pointed to. Did the Iranians know about this in advance? Did Syrians know about it in advance? Or did this happen, in some ways, because of the assassination, because they thought there would be pressure put on Syria. And Iran sort of opportunistically goes to sir were and says, "You need a friend right now, buddy. Let's get together, upgrade our relationship." And at this point, we simply don't know.

PHILLIPS: We talked a lot about the threat of North Korea. And we talk about Iraq, Afghanistan. We talk about Iran. But we haven't talked a lot about Syria, Syria and Lebanon, terrorism in Lebanon. Should we focus more on that?

WALSH: Well, you know, when President Bush offered that infamous line, you know, the axis of evil, and the three countries were Iraq, and North Korea and Iran, what they left out, the sort of first runner up, if you will, in this beauty pageant was Syria.

People have been talking about Syria for a long time. The U.S./Syrian relationship has gone up and down and up and down. They helped us after 9/11. They may have helped us with al Qaeda. But increasingly, the U.S. has grown impatient with Syria. There's rumors that Syria has -- people in Syria are providing cash and/or bodies to the insurgents.

But I think in the big picture, it's worth keeping in mind that Syria is not where the center of gravity is in the region. It's not the most important country. It's not the biggest country. It's important for the future of Lebanon, but it's a small country in the Arab and Muslim world. The real action is with other countries.

PHILLIPS: So when we look at what happened in Lebanon, we look at the assassination on Rafik Hariri, this is more about a localized problem, a civil war, if you will -- we know the history there in Lebanon -- versus an international threat of terrorism?

WALSH: Well, that's right. I think that's exactly right. This assassination, whoever is responsible, and there are any number of possibilities, involves local politics, regional politics.

This is one of those stories where the map really tells what's going on here. If you look at a map, you'll see that Lebanon is essentially engulfed by Syria. And Syria has a lot of influence on what happens there because it has the 13,000 troops. And so it has -- and because it's on Syria's border, it wants to have an influence there.

So I think this is more about backyard politics, regional politics, than it is about the global war on terrorism.

PHILLIPS: Jim Walsh, Harvard University. Thanks, Jim.

WALSH: Thank you, Kyra.

PHILLIPS: CNN, as you know, is committed to providing the most reliable coverage of news that affects your security, so stay tuned to CNN for the latest information day and night.

O'BRIEN: OK. There's slap shot. There's the Mighty Ducks. If you're really desperate, there's "Friday the 13th," you know, hockey mask. Anyway, we're trying to come up with some movies featuring guys in hockey masks, because thanks to a stalled salary face-off, you can consider this year's entire NFL season iced. Put a fork in it.

NHL commissioner Gary Bettman did just that a few moments ago. These are live pictures as he addresses reporters. Let's listen in on some of the Q&A.

GARY BETTMAN, NHL COMMISSIONER: ... the union yesterday, by 6 p.m., and in one additional last-ditch effort to try and save the season, I gave an offer to the union of another $2.5 million.

We were stretching, stretching, to get there, because, again, we were projecting that, under that deal, we would probably lose money for the next two years. Nevertheless, we wanted to try and save the season.

When the union came back at $49 million, it was clear that there was no basis upon which we could make a deal.

The other thing -- and I apologize for the length of the answer, but this -- this is pretty complicated and intense stuff. Six and a half million-dollar difference. What that does is, if you raise the cap by $6.5 million, the bar, particularly because the players were insisting upon, and we agreed, to arbitration, now gets raised for everybody, by $6.5 million.

So you have to multiply the $6.5 million by 30. And that means it's about a $200 million difference. We were not talking about some small difference at all. We were still very far apart.

Perhaps if the union had, last summer, or six weeks ago, said, "OK, we would consider a cap under some circumstances," we might have had more time to deal with this.

One other thing, and then I'll take the next question. Is this is a very difficult negotiation to have in collective bargaining, when the party on the other side doesn't know your economics.

The union has constantly said they don't trust our numbers. We've asked them for five years to audit our books, and they've refused. We've asked them -- Arthur Levitt asked them to meet with him twice to go over what he had done.

And if -- if the party you're negotiating over in terms of how to create a business structure that works doesn't know your numbers, doesn't acknowledge knowledge your numbers, it's pretty difficult to come to an agreement on what those numbers should be and what kind of economic system will work.

O'BRIEN: All right. That's Gary Bettman. A lot of hockey fans wondering where to go at this moment, as it is now official. The NHL season is kaput. That salary cap idea put the owners and the players about $7 million apart. That was not a thing that could be worked out within the time frame allotted. And as such, hockey fans will have to look elsewhere for entertainment -- Kyra.

PHILLIPS: Straight ahead, returning to the place where Princess Diana died. This time, investigators take some special equipment with them. We're going to show you what they hope to do with it just ahead.

And the miles might cost you. A controversial idea to tax drivers by the mile has some privacy experts wanting to put the brakes on it.

And do these polar bears look skinny to you? Scientists say they are thinner and the world needs to do something about it to fatten them up. Find out what, straight ahead.

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

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O'BRIEN: Authorities in Pueblo, Colorado, are beginning the early stages of an investigation into a small plane crash there.

A Cessna Citation, 560. That's an executive twin-engine jet, crashed apparently on approach just east of the airport there, Pueblo, Colorado, a little bit south of Colorado Springs.

There you see some tape which just came in a few minutes ago showing what appears to be some burned wreckage as a result of this.

According to our wires desk here, Circuit City stores confirms that a plane registered to that company crashed there. The plane carried eight passengers, four of whom were employees of the company, Circuit City. No officers of the company were on board. The company will not make any further comment, according to our folks here.

Let me just show you quickly, Pueblo, Colorado, airport sits at about 4,700 feet, as we say, not too far away from Colorado Springs.

I just want to show you the weather at the time of this. Bottom line down here, 600-feet ceiling, that's pretty low, but not too low. And visibility about six statute miles. That should be well within the capability on this particular approach they were flying.

This is a lot of gobbledy-gook, but basically what that show is the approach, which would be coming in from the east to the west, runway 26 right, the instrument landing system, which indicates it would be legal to fly that approach with a ceiling of 300 feet and three quarters mile visibility.

However, there were a lot of weather reports in the area at the time that showed worsening weather, in some cases, freezing mist or freezing fog. Not a good weather picture at the time. Obviously, very early in this investigation to say anything definitive.

But once again, you have a Cessna Citation down about three miles east of the Pueblo, Colorado, airport. A plane operated by Circuit City stores. No officers of the company on board. Eight passengers, we're told. Eight fatalities. We're watching it closely for you -- Kyra. PHILLIPS: Scotland Yard investigators are visiting Paris, but it's no pleasure trip. Armed with new and sophisticated machines, they're taking another look at the 1997 car crash that killed Princess Diana. Of course, high tech can't change the outcome. But CNN's Jim Bittermann says it could revise the official version of what actually happened.

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JIM BITTERMANN, CNN CORRESPONDENT (voice-over): In a scene played out more than once since 1997, British and French investigators were, once again, combing the site where Princess Diana died.

Equipped with lasers and special camera equipment, they blocked off the high-speed traffic lanes at about the same type of day that the accident occurred, intending to create 3-D imaging which will be used in the official coroner's inquest under way in Britain.

A Scotland Yard detective told reporters he hopes investigators will be able to determine exactly what happened, using computer technology not available at the time of the accident.

As far as the French are concerned, the case was closed back then. Blood tests revealed that the chauffeur of the limousine in which Princess Diana and her boyfriend, Dodi Fayed, were riding was high on alcohol and drugs and simply lost control of the car.

But some have continued to believe the princess' death could not have been just a routine traffic accident, that someone wanted to kill her. Among the most suspicious is Dodi Fayed's father, Mohamed al- Fayed, who was also the employer of the chauffeur.

Using both the French and British legal systems, Fayed has obsessively pursued his belief that the royal family assassinated the young couple because they disapproved of their relationship.

In part because of Fayed's insistence, and despite the fact that French courts have ruled out any plot, royal or otherwise, the British began their own investigation last year under the direction of Scotland Yard. Whatever the final cost of the elaborate British inquiry, some say it will be worth it if the talk of royal conspiracies is finally put to rest.

ROBERT JOBSON, CNN ROYAL COMMENTATOR: I'm sure after all these millions of pounds have been spent, after two very extensive investigations by the police forces of France and Great Britain, that we will discover, surprisingly, that this was a tragic accident.

BITTERMANN: With Diana's widower, Prince Charles, planning to marry his long time lover, Camilla Parker Bowles, this spring, the accident now seems a distant memory, except to those like Fayed, who royal watchers say continues to grieve over his son's death.

(on camera) Seven and a half years after the events here, all of the principals in the Diana story has moved on, except for one, who's never been able to accept that his own employees were responsible for the death of his son and the death of the princess.

Jim Bittermann, CNN, Paris.

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PHILLIPS: News across America now.

Hope you like yellow, because you're going to be seeing a lot of it between now and July. Lance Armstrong has decided that six consecutive wins at the Tour de France aren't enough. He announced today he's going to make a seventh attempt at cycling's top crown.

O'BRIEN: And now I've got to jump in, because Kyra doesn't like to do dog stories. A different crowd here. Every dog may have its day. But last night belonged to Carlee, the 5-year-old German Shorthaired Pointer -- pointers are the best, aren't they? Well, this particular dog won best of the show at Westminster Kennel Club. She is a beauty, and she's a great animal, great disposition. Cue Madonna: this pup knows how to vogue.

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DAVID FREI, USA NETWORK: When she went out there and threw that free stack and Michelle had her at the end...

UNIDENTIFIED MALE: What's a free stack?

FREI: It's where the dog poses on its own without any poking or prodding from the handler. And she went out there and put a free stack in the ring at the request of the judge, the crowd went nuts.

(END VIDEO CLIP)

O'BRIEN: Isn't she cute? Attention must also be paid to Carlee's handler last night, Michelle Ostermiller, the gal with the golden leash. She also guided last year's winner to a place in canine history. She's kind of the Eddie Schumacher of the Westminster Kennel Club and dog showing.

And finally, in a possible sign of cultural apocalypse, the redneck art classic, "Dogs Playing Poker." I used to own this one! I guess maybe not the original. Anyway, it fetched an enormous sum at auction last night. Actually, it was too rare original paintings from the 1903 series by Cassius Marcellus Coolidge. They went for the combined price of nearly -- get this -- $600,000. And they're not even on velvet.

PHILLIPS: Get a free stack.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, global warming. People on a tiny island in the south pacific say rising temperatures are sinking their future.

Later on LIVE FROM, family reunion. A survivor found in the ruins of the tsunami is now back in his parent's arms.

Tomorrow on LIVE FROM, he was the first black NFL quarterback, the first black NFL coach. And you probably never heard of him. But now, Fritz Pollard is headed to the Hall of Fame. We'll have the inspiring story of his career and his family's fight for recognition.

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PHILLIPS: ... in 1984 for his leadership in the battle against apartheid. And as part of CNN's anniversary series, "Then and Now," we take a look back at Desmond Tutu's legacy of inspiring nonviolent political change and how he's still guided today by the same faith and values.

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ARCHBISHOP DESMOND TUTU, HELPED END APARTHEID: Our struggle is going to succeed because it is a just struggle.

UNIDENTIFIED FEMALE: During the dark days of apartheid in South Africa, me he was the voice of hope.

TUTU: This must be the last of its kind!

UNIDENTIFIED FEMALE: Archbishop Desmond Tutu always claimed he was a leader by default, but e used his faith to inspire black South Africans to fight for freedom peacefully.

In honor of his battle against apartheid, Tutu won the Nobel Peace Prize in 1984. And when apartheid crumbled 10 years later, President Nelson Mandela pointed to Tutu to lead the Truth and Reconciliation Commission, to help South Africa deal with the crimes committed during apartheid.

TUTU: We must face this ghastly past and not pretend it never happened.

UNIDENTIFIED FEMALE: Often, the truth of the past was painful, even reducing Tutu to tears.

Now, age 73, Tutu is still outspoken on issues around the world, from war to crimes committed in the name of God.

TUTU: God is not a Christian. Nor is God a Muslim. All -- all are God's children.

UNIDENTIFIED FEMALE: Despite a battle with prostate cancer in 1987, Tutu continues to inspire nonviolent political change around the world and works with the peace center that bears his name.

(END VIDEOTAPE)

(COMMERCIAL BREAK) PHILLIPS: Federal Reserve Chairman Alan Greenspan is delivering his semiannual testimony before Congress today. Wall Street, Main Street and Washington all want to know what he has to say about the state of the economy.

David Haffenreffer joins us live from the New York Stock Exchange for the breakdown of green-speak.

Hi, David.

(STOCK REPORT)

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