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Italians Demand Answer for Tragic Friendly Fire Death; Martha Stewart to Meet with Employees; Condoleezza Rice Announces John Bolton as U.N. Ambassador

Aired March 07, 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.


KYRA PHILLIPS, CO-HOST: Hostage controversy. She says she may have been targeted by the U.S. military. The White House calls it absurd. We're reporting from Rome and the Pentagon.
MILES O'BRIEN, CO-HOST: Martha Stewart takes Manhattan. She's out of prison, and she's at the company she founded. We're live for her first day back on the job.

PHILLIPS: Pain at the pump. What's fueling the rising gas prices? We'll talk about it. But first, we want to take you straight to Condoleezza Rice, a live press conference, talking about John Bolton, the new ambassador to the U.N. Let's listen in.

CONDOLEEZZA RICE, SECRETARY OF STATE: ... who were unlucky enough to be born on the wrong side of that divide. The hard work of freedom is a task of generations. Yet it is also urgent work that cannot be deferred.

We have watched in awe in Afghanistan as men and women once oppressed by the Taliban walked miles and stood for hours in the snow just to cast a ballot for their first vote as a free people.

We have watched as millions of Iraqi men and women defied terrorists and cast their free votes and began their nation's new history.

We have seen determination in the faces of citizens in places like Ukraine and Georgia and the Palestinian territories as they have stood firm for their freedom.

We are seeing political reforms begin to take place in Qatar and Jordan and Egypt and Bahrain and Saudi Arabia.

And, this very morning, we applaud the courage of those on the front lines of freedom in Lebanon who are seeking free and fair elections.

In this era of expanding freedom, there is room for optimism, but much hard work lays ahead.

The international community has a challenging agenda before it from the Middle East to Sudan to Haiti to the Balkans from Iran to the Korean peninsula and on many other issues.

Now more than ever, the U.N. must play a critical role as it strives to fulfill the dreams and hopes and aspirations of its original promise to save succeeding generations from the scourge of war, to reaffirm faith in fundamental human rights and to promote social progress and better standards of life in larger freedom.

President Bush has sent our most skilled and experienced diplomats to represent the United States at the U.N. Today, I am honored to continue that tradition by announcing that President Bush intends to nominate John Bolton to be our next ambassador to the United Nations.

The president and I have asked John to do this work, because he knows how to get things done. He is a tough minded diplomat. He has a strong record of success and he has a proven track record of effective multilateralism.

For the past four years, John has served as undersecretary of state for arms control and international security affairs. In that position, John has held primary responsibility for the issue that U.N. Secretary General Kofi Annan has identified as one of our most crucial challenges to international peace and security: stemming the proliferation of weapons of mass destruction.

John helped build a coalition of more than 60 countries to help combat the spread of WMD through the president's Proliferation Security Initiative. John played a key diplomatic role in our sensitive negotiations with Libya when that nation made the wise choice to give up its pursuit of weapons of mass destruction.

And John was the chief negotiator of the Treaty of Moscow, which was signed by Presidents Putin and Bush to reduce nuclear warheads by two-thirds.

RICE: In President George H.W. Bush's administration, John served as assistant secretary of state for international organizations and worked on several key diplomatic initiatives with the U.N., including work on U.N. reform and work on the payment of arrearages in assessments.

In 1991, John was the principle architect behind the initiative that finally led the United Nations General Assembly to repeal the notorious resolution that equated Zionism and racism.

And few may remember this, but John worked between 1997 and 2000 as an assistant to former Secretary James Baker in his capacity as the secretary general's personal envoy to the Western Sahara. John did this work pro bono. If few Americans have direct experience working for the United Nations, I'm confident that fewer still have gained that experiences on their own nickel.

Through history, some of our best ambassadors have been those with the strongest voices -- ambassadors like Gene Kirkpatrick and Daniel Patrick Moynihan.

John Bolton is personally committed to the future success of the United Nations and he will be a strong voice for reform at a time when the United Nations has begun to reform itself to help meet the challenging agenda before the international community.

John will also help to build a broader base of support here in the United States for the U.N. and its mission.

As Secretary General Annan has said, "U.S. support for the U.N. is critical to the success of this institution." The United States will continue to do its part.

John, you have my confidence and that of the president. We thank you for the work you have on behalf of our nation.

To John's wife Gretchen and daughter Jennifer Sarah and other friends of John who are here with us today, we thank you for all that you do.

RICE: But, John, your most important work is yet to come. And I look forward to working closely with you on behalf of our nation and the international community in support of the United Nations.

(APPLAUSE)

JOHN BOLTON, NOMINEE, U.S. AMBASSADOR TO U.N.: Madam Secretary, you and the president have done me a great honor in nominating me to be the United States permanent representative to the United Nations.

If confirmed by the Senate, I will continue to work closely with members of Congress and our colleagues, both in the foreign service and in the civil service, to advance President Bush's policies.

As you know, Madam Secretary, I have worked in the government for many years -- at the Agency for International Development, the Department of Justice and here at the Department of State. This work has afforded me the opportunity to learn from some of our nation's finest public servants.

It has been an honor and a privilege to represent the United States' government in crafting many multinational and bilateral agreements to further our national security objectives.

And, Secretary, my record, over many years, demonstrates clear support for effective multilateral diplomacy, whether it be the Proliferation Security Initiative, the G-8 global partnership or adopting U.N. resolutions. Working closely with others is essential to ensuring a safer world.

We all agree that there are numerous challenges facing the United States And the security of our country and all freedom-loving peoples must be protected.

Close cooperation and the time-honored tradition of frank communication is central to achieving...

PHILLIPS: If confirmed by the Senate, you are now listening to possibly the new ambassador to the U.N., John Bolton, addressing friends, family and reporters right now. After hearing Secretary of State Condoleezza Rice come forward and introduce him as the president's nominee for the next ambassador to the U.N.

Right now, currently, he is -- John Bolton is U.S., or rather, the under secretary of state for arms control and international security. He was sworn in back in 2001 and has been carrying on that position. But now, if confirmed by the Senate, he'll take on that new role, and quite an interesting role, as a lot of reform is taking place right now in the United Nations.

Of course, John Bolton will be the one to take on the oil-for- food scandal and everything coming forward after that, and also recent allegations of U.N. peacekeepers in Congo forcing -- involved, rather, in the trafficking of children. So he'll be taking on a number of recent issues under fire as he continues to address his supporters there.

We'll continue to follow it -- Miles.

O'BRIEN: A nation mourns, a former hostage remembers, an ally insists those memories are incorrect. In Rome today, the secret service agent who gave his life protecting newly freed Italian journalist Giuliana Sgrena in Baghdad received a hero's farewell.

Nicola Calipari was killed in a blaze of gunfire from U.S. forces who say Sgrena's convoy sped past a checkpoint en route to the Baghdad airport. The White House says it is absurd to believe the incident was anything but an accident, though Sgrena, who herself was wounded, says her car was driving slowly and Americans, to quote her, "fired without motive," end of quote.

More now from CNN's Alessio Vinci, who is in Rome.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): Nicola Calipari is considered nothing less than a hero here, a hero for the way he saved Giuliana Sgrena's life by shielding her with his own body. A hero for having secured the release of at least two other Italian hostages held in Iraq. He died Friday in a barrage of American gunfire.

"The Americans must explain what happened," says this mourner.

"I feel anger and pain at the same time," says this other man. "But I think it was an accident."

But Sgrena, who was unable to take part in the funeral, because she is still in hospital recovering from a wound to her shoulder, doesn't want to hear about what American officials are calling a tragic mistake. In a phone interview with CNN, she disputes the U.S. military account that the car was speeding towards a checkpoint and that warnings were given for them to stop.

GIULIANA SGRENA, FREED HOSTAGE (through translator): It is not up to me to say that it wasn't an ambush. It is up to those that did this action. We can call it any way you like until we have the elements define it. They have to demonstrate that there were valid reasons to do what they did.

I don't have to explain what happened. It is up to those who did it or those who gave the orders. There are people there who shot at us. I saw them when they came to open the car and pull me out of it, wounded. So the inquiry could start from there. They have to say why they fired. I don't have to explain why they fired.

VINCI: Calipari was a skilled negotiator, and while the Italian government denies a ransom was paid, media here speculate that up to $6 million were paid for her release.

(on camera) There is a feeling here in Italy that the Americans are not telling the truth. The U.S. military has promised a full investigation. But too many details of the incident remain murky.

And Italians will continue to pressure Prime Minister Silvio Berlusconi until he'll receive a complete account on how and why one of Italy's most experienced intelligence officers was killed.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

O'BRIEN: Let's get some more on the administration's account here, CNN's Barbara Starr here at the Pentagon. Barbara, just bring us up to date. What is the Pentagon saying about this incident?

BARBARA STARR, CNN CORRESPONDENT: Well, Miles, as Alessio Vinci just reported, the United States military is going to begin a full fact finding investigation of this matter. That is the first step in any of these types of cases.

They will talk to all of the parties involved: the soldiers on ground at the checkpoint, commanders, try and interview, perhaps, even members of the Italian party, see what everybody knows.

One of the issues that certainly is likely to come up is the question of communication. What was the level of communication between the Italian agents that were in that car and coalition or U.S. military authorities?

We are told that the initial reports by the soldiers of the 3rd Infantry Division, at least the soldiers that were at that checkpoint, is that they certainly had no idea who was in the car, that nobody had told them, that they saw a car speeding at them. That is according to first accounts. We will see, of course, if that bears out as the investigation proceeds.

The question that will arise, that will have to be answered is what was the level of communication between the Italians and the United States. Did it exist? Was the word passed along? Did the word get down to those individual soldiers on that front line?

We are also told that the checkpoint where all of this happened was essentially a random, or temporary, checkpoint that had been set up on the airport road for traffic control. Miles, it should be said that there are many cases in Iraq, very tragic, very unfortunate, where there have been problems at these checkpoints. The soldiers take a very aggressive attitude when they see a speeding car coming at them, because of suicide car bomber attacks. But they do go through procedures that they have about lights, flashing light signals, warning shots. And then shots to disable a car.

According to the military, that is what happened in this case. But the investigation remains -- Miles.

O'BRIEN: All right. But Barbara, the most explosive statement from Sgrena is that she was singled out, targeted because of the fact that the Italians paid a ransom, apparently, to free her.

STARR: Well, one can only suppose that that, too, will be a matter for investigators to look at. It might be difficult, perhaps, to answer the question of whether anyone in the U.S. military, in a chain of command, no matter what their personal feelings might be about any situation, would have given orders to soldiers, young enlisted soldiers, who are the soldiers that man these checkpoints, to engage in inappropriate conduct.

All of that, Miles, clearly to be a matter of investigation.

O'BRIEN: Barbara Starr at the Pentagon, thanks much -- Kyra.

PHILLIPS: From a federal prison to corporate headquarters, Martha Stewart continues her amazing journey? We're following her first day back just ahead on LIVE FROM.

Got milk? Need milk? The findings of a new study might prove your mother wrong.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: In the village of Padar (ph), children skim in crocodile infested waters, women fetch water without fear, and men interact with the crocs as if they were pets.

(END VIDEO CLIP)

PHILLIPS: Crocodile hunter, eat your heart out. Literally. Can you believe this? We couldn't believe it. Peaceful co-existence with crocodiles, later on LIVE FROM.

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

(COMMERCIAL BREAK)

PHILLIPS: When the boss comes to you, or when the boss comes to talk to you, chances are you listen. Right? But when the boss is Martha Stewart, and she's just been released from prison, everybody listens. And it's going to happen in this room. Bit of a shaky picture here, but you get the idea. That's about 475 of her employees, and Martha Stewart is going to address them there at the Martha Stewart Living Omnimedia building after five months behind bars. She's checking in this hour with her company's offices in Manhattan.

CNN senior correspondent Allan Chernoff is also there. Not inside the room obviously, on the outside.

Busy place today, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: No question about that, Kyra. And would you believe Martha Stewart has been out of prison for only four days, but the remarketing of Martha Stewart is now in full swing.

As you mentioned, in a few minutes Martha Stewart will be addressing her staff here at her offices on the west side of Manhattan. This, in fact, is the very same building where, back in September, Martha Stewart announced that she would begin serving her prison term, even though she is appealing her conviction on charges of obstruction of justice.

Now Martha Stewart's company over the weekend also released photographs and video of Ms. Stewart hosting friends and family at her home in Bedford, New York.

On Friday night, the company arranged for a photo op of Martha Stewart boarding her jet to leave West Virginia and return to New York state. And on Friday during the day, Martha Stewart was quite accommodating, chatting with reporters and photographers outside of her home, even offering up hot cocoa to the photographers.

So what's behind all this? Well, it is not just about vanity. This is serious business. The company needs to rebuild Martha Stewart as the queen of the domestic arts in order to lure advertisers back to the magazine, "Martha Stewart Living," also luring advertisers to her new television shows, "The Apprentice," which will air on NBC and also a syndicated daytime program.

Of course, Martha Stewart is beginning a five-month period where she will have home confinement. But she'll be allowed out for 48 hours a week. That will include time for work, and you can best believe she's making the best of that time -- Kyra.

PHILLIPS: All right, Allan Chernoff. Get to see what she serves up in the room today. Thank you so much. We'll check in with you -- Miles.

O'BRIEN: The accuser's sister back is on the stand today in the Michael Jackson child molestation trial. The defense cross-examined the 18-year-old, attorney Tom Mesereau trying to undermine her credibility. We'll have a live report from the trial in the next hour of LIVE FROM.

Outside the courtroom, meantime, "Tonight Show" host Jay Leno, who has been subpoenaed in the trial, has to call in a pinch-hitter to tell his Michael Jackson jokes. Friday, he had "Everybody Loves Raymond" co-star Brad Garrett deliver his Jackson lines.

Leno is trying to get exempted from the judge's gag order, although this is kind of funny as it is.

PHILLIPS: Other news across America now.

Saying you can't turn back history. Baseball commissioner Bud Selig promises no records will be taken away from players suspected of using steroids. Selig says it wouldn't be fair, since no player has been convicted in that scandal. He predicts the sport will be steroid-free this year.

Two more of those once-stranded dolphins have died in Florida. Two others delivered still-born calves. About 68 rough-toothed dolphins stranded themselves on the Keys on Wednesday. Almost half have died or been euthanized. Some of the others are being cared for in Miami.

A twist in the debate over spanking kids. A mother says the Schaumburg Christian School in Illinois ordered her to spank her first grader for acting up. When she refused, she says the school suspended the 6-year-old boy. The school administrator tells the "Chicago Tribune" the school has the prerogative of asking parents to spank a student, although it's rare and considered a last resort.

O'BRIEN: Well, to spank or not to spank? There are so many different views about what's really good for kids. But through the years, there's been one basic tenant of childhood that's never been in question -- until now.

CNN's senior medical correspondent, Dr. Sanjay Gupta, looks at new beliefs about milk.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): It's been ingrained in our minds since childhood.

UNIDENTIFIED FEMALE: Milk. It does a body good.

GUPTA: But does it really? The answer, based on recent studies, might shock you.

DR. NEAL D. BARNARD, RESEARCHER: We looked at whether milk protects the bones and whether milk builds bone density. The evidence is clear: milk really doesn't help. We've grown up with a myth.

GUPTA: Contrary to what our mothers told us growing up, an analysis of 58 dairy studies conducted by researchers from the Physician's Committee for Responsible Medicine found that calcium from milk and other dairy products does not help bone development in children and teens.

BARNARD: That kid who did not want to drink the milk should stop being forced to do so. It's not going to help their bones.

GUPTA: The news, shocking to most parents.

UNIDENTIFIED FEMALE: Very surprised and very reluctant to believe that.

UNIDENTIFIED FEMALE: I've always thought since I was -- I grew up that milk is good for the bones and for the teeth and for just building, you know, strong bodies. So that's what I've always done, and I've always, you know, stressed to my kids.

GUPTA: But should pediatricians start to tell parents that they don't need to worry about getting their kids to drink milk? The American Academy of Pediatrics stands by its guidelines of 800 to 1,300 milligrams of dietary calcium daily for children over 2 and teens.

DR. MEL HEYMAN, AMERICAN ACADEMY OF PEDIATRICS: There is no evidence that giving the calcium harms anybody. Milk has other nutrients that are important, such as the added vitamin D. There is protein in milk. I would still encourage the intake of milk for both its calcium and nutrient content.

GUPTA: Instead of dairy, the new analysis emphasizes weight- bearing exercise as a better way to build and maintain strong bones. And sources like green leafy vegetables and fortified O.J. as ways to get the minimal amount of calcium the body does need.

The analysis supports a growing number of doctors who question the value of children drinking milk after they've stopped breast- feeding. Others cite cow's milk as a primary culprit behind some children's allergies and say it's unnatural that humans are the only species who drink the milk of other mammals.

In spite of the news, many parents are still holding on to their beliefs.

UNIDENTIFIED FEMALE: I would definitely push the issue with milk, because it is very good for your teeth and bones, and so we would continue to drink it.

GUPTA: Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM: going up. You're paying more at the pump. Could that lead to higher prices for other things?

Later on LIVE FROM, burning controversy.

UNIDENTIFIED FEMALE: You don't want somebody coming up to you and saying, burn, baby, burn, because you're a racist.

PHILLIPS: Messages sent by police during a nightclub fire raised charges of racism. Also, later on LIVE FROM, small cars, big crashes. How well did your car hold up in the latest highway safety test? We'll have the results.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

O'BRIEN: Live pictures now, Manhattan. We expect to come to that door just a moment from now. There she is, Martha Stewart before a few hundred of her employees. Is that her? That's not Martha. That isn't Martha. I knew she looked good and trim, so I wasn't sure.

That is obviously someone else affiliated with Martha Stewart Omni Living (sic), and we will...

PHILLIPS: Wow. Looks just like her.

O'BRIEN: Yes.

PHILLIPS: Doesn't it look like her, Miles?

O'BRIEN: I guess we'll keep moving as she...

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired March 7, 2005 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: Hostage controversy. She says she may have been targeted by the U.S. military. The White House calls it absurd. We're reporting from Rome and the Pentagon.
MILES O'BRIEN, CO-HOST: Martha Stewart takes Manhattan. She's out of prison, and she's at the company she founded. We're live for her first day back on the job.

PHILLIPS: Pain at the pump. What's fueling the rising gas prices? We'll talk about it. But first, we want to take you straight to Condoleezza Rice, a live press conference, talking about John Bolton, the new ambassador to the U.N. Let's listen in.

CONDOLEEZZA RICE, SECRETARY OF STATE: ... who were unlucky enough to be born on the wrong side of that divide. The hard work of freedom is a task of generations. Yet it is also urgent work that cannot be deferred.

We have watched in awe in Afghanistan as men and women once oppressed by the Taliban walked miles and stood for hours in the snow just to cast a ballot for their first vote as a free people.

We have watched as millions of Iraqi men and women defied terrorists and cast their free votes and began their nation's new history.

We have seen determination in the faces of citizens in places like Ukraine and Georgia and the Palestinian territories as they have stood firm for their freedom.

We are seeing political reforms begin to take place in Qatar and Jordan and Egypt and Bahrain and Saudi Arabia.

And, this very morning, we applaud the courage of those on the front lines of freedom in Lebanon who are seeking free and fair elections.

In this era of expanding freedom, there is room for optimism, but much hard work lays ahead.

The international community has a challenging agenda before it from the Middle East to Sudan to Haiti to the Balkans from Iran to the Korean peninsula and on many other issues.

Now more than ever, the U.N. must play a critical role as it strives to fulfill the dreams and hopes and aspirations of its original promise to save succeeding generations from the scourge of war, to reaffirm faith in fundamental human rights and to promote social progress and better standards of life in larger freedom.

President Bush has sent our most skilled and experienced diplomats to represent the United States at the U.N. Today, I am honored to continue that tradition by announcing that President Bush intends to nominate John Bolton to be our next ambassador to the United Nations.

The president and I have asked John to do this work, because he knows how to get things done. He is a tough minded diplomat. He has a strong record of success and he has a proven track record of effective multilateralism.

For the past four years, John has served as undersecretary of state for arms control and international security affairs. In that position, John has held primary responsibility for the issue that U.N. Secretary General Kofi Annan has identified as one of our most crucial challenges to international peace and security: stemming the proliferation of weapons of mass destruction.

John helped build a coalition of more than 60 countries to help combat the spread of WMD through the president's Proliferation Security Initiative. John played a key diplomatic role in our sensitive negotiations with Libya when that nation made the wise choice to give up its pursuit of weapons of mass destruction.

And John was the chief negotiator of the Treaty of Moscow, which was signed by Presidents Putin and Bush to reduce nuclear warheads by two-thirds.

RICE: In President George H.W. Bush's administration, John served as assistant secretary of state for international organizations and worked on several key diplomatic initiatives with the U.N., including work on U.N. reform and work on the payment of arrearages in assessments.

In 1991, John was the principle architect behind the initiative that finally led the United Nations General Assembly to repeal the notorious resolution that equated Zionism and racism.

And few may remember this, but John worked between 1997 and 2000 as an assistant to former Secretary James Baker in his capacity as the secretary general's personal envoy to the Western Sahara. John did this work pro bono. If few Americans have direct experience working for the United Nations, I'm confident that fewer still have gained that experiences on their own nickel.

Through history, some of our best ambassadors have been those with the strongest voices -- ambassadors like Gene Kirkpatrick and Daniel Patrick Moynihan.

John Bolton is personally committed to the future success of the United Nations and he will be a strong voice for reform at a time when the United Nations has begun to reform itself to help meet the challenging agenda before the international community.

John will also help to build a broader base of support here in the United States for the U.N. and its mission.

As Secretary General Annan has said, "U.S. support for the U.N. is critical to the success of this institution." The United States will continue to do its part.

John, you have my confidence and that of the president. We thank you for the work you have on behalf of our nation.

To John's wife Gretchen and daughter Jennifer Sarah and other friends of John who are here with us today, we thank you for all that you do.

RICE: But, John, your most important work is yet to come. And I look forward to working closely with you on behalf of our nation and the international community in support of the United Nations.

(APPLAUSE)

JOHN BOLTON, NOMINEE, U.S. AMBASSADOR TO U.N.: Madam Secretary, you and the president have done me a great honor in nominating me to be the United States permanent representative to the United Nations.

If confirmed by the Senate, I will continue to work closely with members of Congress and our colleagues, both in the foreign service and in the civil service, to advance President Bush's policies.

As you know, Madam Secretary, I have worked in the government for many years -- at the Agency for International Development, the Department of Justice and here at the Department of State. This work has afforded me the opportunity to learn from some of our nation's finest public servants.

It has been an honor and a privilege to represent the United States' government in crafting many multinational and bilateral agreements to further our national security objectives.

And, Secretary, my record, over many years, demonstrates clear support for effective multilateral diplomacy, whether it be the Proliferation Security Initiative, the G-8 global partnership or adopting U.N. resolutions. Working closely with others is essential to ensuring a safer world.

We all agree that there are numerous challenges facing the United States And the security of our country and all freedom-loving peoples must be protected.

Close cooperation and the time-honored tradition of frank communication is central to achieving...

PHILLIPS: If confirmed by the Senate, you are now listening to possibly the new ambassador to the U.N., John Bolton, addressing friends, family and reporters right now. After hearing Secretary of State Condoleezza Rice come forward and introduce him as the president's nominee for the next ambassador to the U.N.

Right now, currently, he is -- John Bolton is U.S., or rather, the under secretary of state for arms control and international security. He was sworn in back in 2001 and has been carrying on that position. But now, if confirmed by the Senate, he'll take on that new role, and quite an interesting role, as a lot of reform is taking place right now in the United Nations.

Of course, John Bolton will be the one to take on the oil-for- food scandal and everything coming forward after that, and also recent allegations of U.N. peacekeepers in Congo forcing -- involved, rather, in the trafficking of children. So he'll be taking on a number of recent issues under fire as he continues to address his supporters there.

We'll continue to follow it -- Miles.

O'BRIEN: A nation mourns, a former hostage remembers, an ally insists those memories are incorrect. In Rome today, the secret service agent who gave his life protecting newly freed Italian journalist Giuliana Sgrena in Baghdad received a hero's farewell.

Nicola Calipari was killed in a blaze of gunfire from U.S. forces who say Sgrena's convoy sped past a checkpoint en route to the Baghdad airport. The White House says it is absurd to believe the incident was anything but an accident, though Sgrena, who herself was wounded, says her car was driving slowly and Americans, to quote her, "fired without motive," end of quote.

More now from CNN's Alessio Vinci, who is in Rome.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): Nicola Calipari is considered nothing less than a hero here, a hero for the way he saved Giuliana Sgrena's life by shielding her with his own body. A hero for having secured the release of at least two other Italian hostages held in Iraq. He died Friday in a barrage of American gunfire.

"The Americans must explain what happened," says this mourner.

"I feel anger and pain at the same time," says this other man. "But I think it was an accident."

But Sgrena, who was unable to take part in the funeral, because she is still in hospital recovering from a wound to her shoulder, doesn't want to hear about what American officials are calling a tragic mistake. In a phone interview with CNN, she disputes the U.S. military account that the car was speeding towards a checkpoint and that warnings were given for them to stop.

GIULIANA SGRENA, FREED HOSTAGE (through translator): It is not up to me to say that it wasn't an ambush. It is up to those that did this action. We can call it any way you like until we have the elements define it. They have to demonstrate that there were valid reasons to do what they did.

I don't have to explain what happened. It is up to those who did it or those who gave the orders. There are people there who shot at us. I saw them when they came to open the car and pull me out of it, wounded. So the inquiry could start from there. They have to say why they fired. I don't have to explain why they fired.

VINCI: Calipari was a skilled negotiator, and while the Italian government denies a ransom was paid, media here speculate that up to $6 million were paid for her release.

(on camera) There is a feeling here in Italy that the Americans are not telling the truth. The U.S. military has promised a full investigation. But too many details of the incident remain murky.

And Italians will continue to pressure Prime Minister Silvio Berlusconi until he'll receive a complete account on how and why one of Italy's most experienced intelligence officers was killed.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE)

O'BRIEN: Let's get some more on the administration's account here, CNN's Barbara Starr here at the Pentagon. Barbara, just bring us up to date. What is the Pentagon saying about this incident?

BARBARA STARR, CNN CORRESPONDENT: Well, Miles, as Alessio Vinci just reported, the United States military is going to begin a full fact finding investigation of this matter. That is the first step in any of these types of cases.

They will talk to all of the parties involved: the soldiers on ground at the checkpoint, commanders, try and interview, perhaps, even members of the Italian party, see what everybody knows.

One of the issues that certainly is likely to come up is the question of communication. What was the level of communication between the Italian agents that were in that car and coalition or U.S. military authorities?

We are told that the initial reports by the soldiers of the 3rd Infantry Division, at least the soldiers that were at that checkpoint, is that they certainly had no idea who was in the car, that nobody had told them, that they saw a car speeding at them. That is according to first accounts. We will see, of course, if that bears out as the investigation proceeds.

The question that will arise, that will have to be answered is what was the level of communication between the Italians and the United States. Did it exist? Was the word passed along? Did the word get down to those individual soldiers on that front line?

We are also told that the checkpoint where all of this happened was essentially a random, or temporary, checkpoint that had been set up on the airport road for traffic control. Miles, it should be said that there are many cases in Iraq, very tragic, very unfortunate, where there have been problems at these checkpoints. The soldiers take a very aggressive attitude when they see a speeding car coming at them, because of suicide car bomber attacks. But they do go through procedures that they have about lights, flashing light signals, warning shots. And then shots to disable a car.

According to the military, that is what happened in this case. But the investigation remains -- Miles.

O'BRIEN: All right. But Barbara, the most explosive statement from Sgrena is that she was singled out, targeted because of the fact that the Italians paid a ransom, apparently, to free her.

STARR: Well, one can only suppose that that, too, will be a matter for investigators to look at. It might be difficult, perhaps, to answer the question of whether anyone in the U.S. military, in a chain of command, no matter what their personal feelings might be about any situation, would have given orders to soldiers, young enlisted soldiers, who are the soldiers that man these checkpoints, to engage in inappropriate conduct.

All of that, Miles, clearly to be a matter of investigation.

O'BRIEN: Barbara Starr at the Pentagon, thanks much -- Kyra.

PHILLIPS: From a federal prison to corporate headquarters, Martha Stewart continues her amazing journey? We're following her first day back just ahead on LIVE FROM.

Got milk? Need milk? The findings of a new study might prove your mother wrong.

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UNIDENTIFIED MALE: In the village of Padar (ph), children skim in crocodile infested waters, women fetch water without fear, and men interact with the crocs as if they were pets.

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PHILLIPS: Crocodile hunter, eat your heart out. Literally. Can you believe this? We couldn't believe it. Peaceful co-existence with crocodiles, later on LIVE FROM.

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

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PHILLIPS: When the boss comes to you, or when the boss comes to talk to you, chances are you listen. Right? But when the boss is Martha Stewart, and she's just been released from prison, everybody listens. And it's going to happen in this room. Bit of a shaky picture here, but you get the idea. That's about 475 of her employees, and Martha Stewart is going to address them there at the Martha Stewart Living Omnimedia building after five months behind bars. She's checking in this hour with her company's offices in Manhattan.

CNN senior correspondent Allan Chernoff is also there. Not inside the room obviously, on the outside.

Busy place today, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: No question about that, Kyra. And would you believe Martha Stewart has been out of prison for only four days, but the remarketing of Martha Stewart is now in full swing.

As you mentioned, in a few minutes Martha Stewart will be addressing her staff here at her offices on the west side of Manhattan. This, in fact, is the very same building where, back in September, Martha Stewart announced that she would begin serving her prison term, even though she is appealing her conviction on charges of obstruction of justice.

Now Martha Stewart's company over the weekend also released photographs and video of Ms. Stewart hosting friends and family at her home in Bedford, New York.

On Friday night, the company arranged for a photo op of Martha Stewart boarding her jet to leave West Virginia and return to New York state. And on Friday during the day, Martha Stewart was quite accommodating, chatting with reporters and photographers outside of her home, even offering up hot cocoa to the photographers.

So what's behind all this? Well, it is not just about vanity. This is serious business. The company needs to rebuild Martha Stewart as the queen of the domestic arts in order to lure advertisers back to the magazine, "Martha Stewart Living," also luring advertisers to her new television shows, "The Apprentice," which will air on NBC and also a syndicated daytime program.

Of course, Martha Stewart is beginning a five-month period where she will have home confinement. But she'll be allowed out for 48 hours a week. That will include time for work, and you can best believe she's making the best of that time -- Kyra.

PHILLIPS: All right, Allan Chernoff. Get to see what she serves up in the room today. Thank you so much. We'll check in with you -- Miles.

O'BRIEN: The accuser's sister back is on the stand today in the Michael Jackson child molestation trial. The defense cross-examined the 18-year-old, attorney Tom Mesereau trying to undermine her credibility. We'll have a live report from the trial in the next hour of LIVE FROM.

Outside the courtroom, meantime, "Tonight Show" host Jay Leno, who has been subpoenaed in the trial, has to call in a pinch-hitter to tell his Michael Jackson jokes. Friday, he had "Everybody Loves Raymond" co-star Brad Garrett deliver his Jackson lines.

Leno is trying to get exempted from the judge's gag order, although this is kind of funny as it is.

PHILLIPS: Other news across America now.

Saying you can't turn back history. Baseball commissioner Bud Selig promises no records will be taken away from players suspected of using steroids. Selig says it wouldn't be fair, since no player has been convicted in that scandal. He predicts the sport will be steroid-free this year.

Two more of those once-stranded dolphins have died in Florida. Two others delivered still-born calves. About 68 rough-toothed dolphins stranded themselves on the Keys on Wednesday. Almost half have died or been euthanized. Some of the others are being cared for in Miami.

A twist in the debate over spanking kids. A mother says the Schaumburg Christian School in Illinois ordered her to spank her first grader for acting up. When she refused, she says the school suspended the 6-year-old boy. The school administrator tells the "Chicago Tribune" the school has the prerogative of asking parents to spank a student, although it's rare and considered a last resort.

O'BRIEN: Well, to spank or not to spank? There are so many different views about what's really good for kids. But through the years, there's been one basic tenant of childhood that's never been in question -- until now.

CNN's senior medical correspondent, Dr. Sanjay Gupta, looks at new beliefs about milk.

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DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT (voice-over): It's been ingrained in our minds since childhood.

UNIDENTIFIED FEMALE: Milk. It does a body good.

GUPTA: But does it really? The answer, based on recent studies, might shock you.

DR. NEAL D. BARNARD, RESEARCHER: We looked at whether milk protects the bones and whether milk builds bone density. The evidence is clear: milk really doesn't help. We've grown up with a myth.

GUPTA: Contrary to what our mothers told us growing up, an analysis of 58 dairy studies conducted by researchers from the Physician's Committee for Responsible Medicine found that calcium from milk and other dairy products does not help bone development in children and teens.

BARNARD: That kid who did not want to drink the milk should stop being forced to do so. It's not going to help their bones.

GUPTA: The news, shocking to most parents.

UNIDENTIFIED FEMALE: Very surprised and very reluctant to believe that.

UNIDENTIFIED FEMALE: I've always thought since I was -- I grew up that milk is good for the bones and for the teeth and for just building, you know, strong bodies. So that's what I've always done, and I've always, you know, stressed to my kids.

GUPTA: But should pediatricians start to tell parents that they don't need to worry about getting their kids to drink milk? The American Academy of Pediatrics stands by its guidelines of 800 to 1,300 milligrams of dietary calcium daily for children over 2 and teens.

DR. MEL HEYMAN, AMERICAN ACADEMY OF PEDIATRICS: There is no evidence that giving the calcium harms anybody. Milk has other nutrients that are important, such as the added vitamin D. There is protein in milk. I would still encourage the intake of milk for both its calcium and nutrient content.

GUPTA: Instead of dairy, the new analysis emphasizes weight- bearing exercise as a better way to build and maintain strong bones. And sources like green leafy vegetables and fortified O.J. as ways to get the minimal amount of calcium the body does need.

The analysis supports a growing number of doctors who question the value of children drinking milk after they've stopped breast- feeding. Others cite cow's milk as a primary culprit behind some children's allergies and say it's unnatural that humans are the only species who drink the milk of other mammals.

In spite of the news, many parents are still holding on to their beliefs.

UNIDENTIFIED FEMALE: I would definitely push the issue with milk, because it is very good for your teeth and bones, and so we would continue to drink it.

GUPTA: Dr. Sanjay Gupta, CNN, Atlanta.

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PHILLIPS (voice-over): Next on LIVE FROM: going up. You're paying more at the pump. Could that lead to higher prices for other things?

Later on LIVE FROM, burning controversy.

UNIDENTIFIED FEMALE: You don't want somebody coming up to you and saying, burn, baby, burn, because you're a racist.

PHILLIPS: Messages sent by police during a nightclub fire raised charges of racism. Also, later on LIVE FROM, small cars, big crashes. How well did your car hold up in the latest highway safety test? We'll have the results.

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O'BRIEN: Live pictures now, Manhattan. We expect to come to that door just a moment from now. There she is, Martha Stewart before a few hundred of her employees. Is that her? That's not Martha. That isn't Martha. I knew she looked good and trim, so I wasn't sure.

That is obviously someone else affiliated with Martha Stewart Omni Living (sic), and we will...

PHILLIPS: Wow. Looks just like her.

O'BRIEN: Yes.

PHILLIPS: Doesn't it look like her, Miles?

O'BRIEN: I guess we'll keep moving as she...

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