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Martha Stewart: Company to Focus on Family Values; Bush Makes Controversial Pick for U.N. Ambassador; Cronkite: CBS Should Have Dropped Rather Sooner; Millionaire Helps War Wounded in Vietnam, U.S.

Aired March 07, 2005 - 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.


KYRA PHILLIPS, CNN ANCHOR: The top ten things Martha Stewart learned in prison. The queen of style goes back to work for a pep talk with her employees. Find out how her time behind bars changed her and the goals of her company. We'll have a live report straight ahead.
Undersecretary of State John Bolton, the president's choice to be U.S. ambassador to the U.N. Secretary of state Condoleezza Rice announced his nomination today. Bolton, strong critic of the U.N. in the past, still faces Senate confirmation.

Debating a minimum wage hike. Senate Democrats want an increase of more than $2 an hour. Republicans are calling for a smaller raise. Even if the Senate approves the increase, however, the outlook is cloudy in the House. The minimum wage is $5.15 an hour. It's been that way for eight years.

MILES O'BRIEN, CNN ANCHOR: So we presume you haven't had enough for Martha Stewart. Don't answer that question.

There she was today, just four days out of prison, looking poised, looking splendid, holding courts in New York, midtown Manhattan, live television coverage, of course. The big news: she loves to vacuum and iron, or so she claims anyhow.

Allan Chernoff has been hoovering up details for us outside the building. Not allowed in. Probably not dressed well enough right, Allan?

ALLAN CHERNOFF, CNN CORRESPONDENT: Well, I hope I'm dressed well enough, Miles.

Martha Stewart has gone in from prisoner to corporate rock star in just a matter of days. To no one's surprise, she received a standing ovation from her staff, more than 400 people packed into an auditorium on the ninth floor of the building behind me. In fact, the very room where Martha Stewart back in September announced that she would be would begin serving her prison sentence.

Everyone also could notice that Martha Stewart was not wearing the ankle bracelet that she will have to wear as part of her home confinement over the next five months.

Martha Stewart thanked her staff very much. She also said that she wants the company now to wrap itself in family values. She said that Americans need to make family connections. They need to honor families.

She also said that her time away, as she and her company referred to her prison time, had put her life in perspective.

(BEGIN VIDEO CLIP)

MARTHA STEWART, FOUNDER, MARTHA STEWART LIVING OMNIMEDIA: I know now more than ever how important these values are for happiness, as an antidote for alienation and as for the deep experience of just being alive. This is what truly interests us, why we all come to work every day. Our passion is and always should be to make life better.

(END VIDEO CLIP)

CHERNOFF: This public display is all about the remarketing of Martha Stewart. Of course, the company needs to rebuild Martha so that it can attract advertisers. Keep in mind, advertising in "Martha Stewart Living" magazine over the past two years fell by 70 percent. That's ad revenue. So the company desperate to get the advertisers back, to get America loving Martha Stewart once again -- Miles.

O'BRIEN: All right. Allan, I didn't want to imply that you were shut out of the event. You were, obviously, in there.

And I just want to ask you, the whole thing that we've witnessed thus far seems as if it has been very tightly scripted, very well thought out, a lot of attention to detail. In other words, Martha's producing.

Clearly she's in charge, even though she can't be the officer of the company. Does she have to watch that? If she goes too far, could she run afoul of the law in some other way?

CHERNOFF: Well, of course she has, No. 1, the 48 hours that she's permitted out of her home during the next five months once she gets that ankle bracelet on in terms of just being out of the home.

In terms of being an executive of the company, there is still a securities and exchange lawsuit against Martha Stewart that asks that she be banned for life from serving as an officer or director of any public company.

Now we understand from sources very close to this case that a settlement is very likely and that the SEC is likely to agree to a five-year ban on Martha Stewart serving as an officer or director of her company. So that's what we can anticipate.

But that probably won't happen until the criminal case is entirely resolved. And keep in mind, on March 17 there is an appeal scheduled before a three-judge panel of the criminal conviction of Martha Stewart.

O'BRIEN: And meantime, the people in that room, they know who's boss. All right. Alan Chernoff, thanks very much -- Kyra.

PHILLIPS: At the Michael Jackson trial, the sister of Jackson's accuser was back on the stand today. Questioned by Jackson's attorney, she denied ever saying that her brother had problems in school, including expulsion. Last week the sister told the jury that her brother had changed for the worst after allegedly being molested by the defendant.

Also, today the judge in the case abruptly called a comfort break after Jackson stood at his table and rocked back and forth from foot to foot.

And in Los Angeles, it's the first full day of jury deliberation in the murder case of actor Robert Blake. Blake is charged with killing his wife, Bonny, outside an Italian restaurant.

In Blake's version he returned to the restaurant briefly to find a gun he'd left at dinner, and then back in the car, he discovered his wife was dead. Well, the revolver in question was not the murder weapon. Two men prosecutors say Blake approached to kill his wife have admitted to heavy drug use.

O'BRIEN: President Bush multitasking today, first choosing an outspoken arms control expert to be the next U.S. ambassador to the United Nations, his choice anyhow, and then flying up to Pittsburgh to push a new multimillion dollar initiative against gang violence.

Our Dana Bash traveling with the president -- Dana.

DANA BASH, CNN CORRESPONDENT: Hi, Miles. Well, remember during the State of the Union address, the president announced a new initiative to try to address problems with at-risk youth, and he said that his wife, the first lady, would be leading that charge.

Well, first lady Laura Bush has been traveling the country talking about this issue. Today is the first time the two will appear together to discuss her efforts and his efforts and will announce that there will be a White House conference, the first ever they say, this fall to discuss the problems with at-risk youth, particularly when it comes to boys.

But meanwhile, back in Washington, the president left it to his secretary of state, Condoleezza Rice, to announce his new pick for U.S. ambassador to the United Nations. And it was a bit of a surprise and somewhat controversial who was chosen.

It is John Bolton. Now he is undersecretary of state for arms control, someone who is known to have perhaps ruffled some feathers in some talks, particularly with the Chinese, and a few years ago with the North Koreans during those six-way nuclear talks.

The secretary of state, when she introduced him in her own, perhaps diplomatic parlance, said that he is a tough-minded diplomat.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: 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 the United Nations has begun to reform itself to help meet the challenging agenda before the international community.

JOHN BOLTON, NOMINEE FOR U.S. AMBASSADOR TO U.N.: Close cooperation and the time honored tradition of frank communication is central to achieving our mutually held objectives. The United Nations affords us the opportunity to move our policies forward, together with unity of purpose.

(END VIDEO CLIP)

BASH: Now, that phrase, unity of purpose, is quite key, because one of the reasons why Bolton is a controversial pick is because he has spent his career, particularly in academia, being highly critical of the United Nations that he will go now serve with.

He said -- Democrats are actually sending around some of his old quotes already. For example, in 1994, Bolton saying that there's no such thing as the United Nations. If the U.N. secretary building in New York lost ten stories, it wouldn't make a bit of a difference.

Now Bolton, it is important to note, has said since that perhaps he was more free to talk as an academic than he is now when he is serving the president, but certainly this is likely to raise some eyebrows, particularly in European countries and at international organizations like the United Nations, as the president does say he wants to try to repair relations, particularly since they were so fractured at the U.N. over the Iraq war --- Miles.

O'BRIEN: CNN's Dana Bash traveling with the president -- Kyra.

PHILLIPS: Twenty thousand mourners packed the Piazza in Rome for the state funeral of an agent shot while helping an ex-hostage out of Iraq.

Nicola Calipari, 50-year-old father of two, is being remembered as a hero. He died while shielding journalist Giuliana Sgrena from U.S. fire at an Iraqi checkpoint. Sgrena was wounded.

Italy says it wants answers. Sgrena has disputed the U.S. military's account of the attack. Today she talked to CNN.

(BEGIN VIDEO CLIP)

GIULIANA SGRENA, FREED ITALIAN HOSTAGE (through translator): It is not up to me to say it wasn't an ambush. It is up to those who did this action. We can call it any way you like until we have the elements to 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.

(END VIDEO CLIP)

PHILLIPS: The White House calls the shooting a horrific accident and promises a full investigation.

O'BRIEN: A deadly day of attacks in Iraq. A suicide car bomb targeting an Iraqi security officer killed five Iraqis, wounded 27 in Balad about 50 miles north of Baghdad. Most of the casualties, students lined up to attend a school near the officers' home. In all, violence today killed at least 18, wounded dozens more.

Meanwhile a fire burns in an oil field north of Baghdad. Insurgents blew up the pipeline in Samarra in efforts to weaken Iraq's economy.

The U.S. may be closing in on the mastermind behind many deadly attacks in Iraq. Senior U.S. military and Pentagon officials are telling CNN U.S. forces have come very physically close to catching Abu Musab al-Zarqawi.

These photographs are believed to be of Zarqawi. Military forces say the pictures were found in a video camera captured during a raid several weeks ago. It's unclear how recently the pictures were taken, but it appears they were taken at the same time and place.

PHILLIPS: Elsewhere around the world, British Prime Minister Tony Blair is facing a blow to his proposed new anti-terrorism law. The House of Lords has amended the bill to say only judges can impose curfews and other restrictions on terror suspects. Blair wanted to give the home secretary that power.

The White House says today's announcement in Damascus about Syrian troop withdrawals from Lebanon doesn't go far enough. The presidents of Syria and Lebanon committed today to the pullback of Syria forces into the Bekaa Valley before March 30. After that the countries are to decide when to pull the troops completely out of Lebanon.

A spokesperson for Pope John Paul II says the pontiff hopes to be back in the Vatican by holy week. The pope is recovering from breathing problems in a Rome hospital.

O'BRIEN: Well, as Dan Rather prepares to step down, some criticism over the retiring anchor heats up even more. Straight ahead, Wolf Blitzer talks with his predecessor. Walter Cronkite will weigh in on Rather's retirement. He'll give us a preview of that interview up next.

PHILLIPS: Later on LIVE FROM, giving back: find out how this former Vietnam war translator is helping today's troops.

(COMMERCIAL BREAK)

O'BRIEN: Well, Dan Rather is out and his predecessor, Walter Cronkite, is speaking out. Wolf Blitzer spent some time with the great Walter Cronkite today and has an extended interview which he will, of course, show you on his program, "WOLF BLITZER REPORTS," but he's here to share some tidbits with us.

Wolf, good to have you with us. I read that Ken Auletta piece in "The New Yorker." I was amazed at some of the comments that some of Dan Rather's CBS colleagues offered up. And among them Walter Cronkite saying, you know, he never felt right in that slot. Did he, when you talked to him today, did he continue in that vain?

WOLF BLITZER, HOST, "WOLF BLITZER REPORTS": To a certain degree. You know, he said nice things about Dan Rather, this being his last week. Wednesday will be his last day, Miles.

But he made it clear that he was surprised that CBS News actually had kept Dan Rather in that chief anchor slot for so long, given the fact that ratings were so bad for "The CBS Evening News."

And he did note that, unlike Tom Brokaw and Peter Jennings, Dan Rather had a different style that wasn't as natural to being an anchorman as the other two.

But what was most newsworthy, I thought, because I never heard him say this, he thought CBS News should have asked Dan Rather to step down awhile ago and put Bob Schieffer into that seat. He had great respect for Bob Schieffer.

Let's play an excerpt from this interview I did with Walter Cronkite just a little while ago.

(BEGIN VIDEOTAPE)

WALTER CRONKITE, FORMER CBS NEWS ANCHOR: He is, to my mind, the man who, quite frankly, although Dan did a fine job, I would like have to have seen in there a long time ago. He would have -- he would have given the others a real run for their money.

BLITZER: Better than Dan Rather would have done? Because he was perennially in third place in the ratings, behind Tom Brokaw and Peter Jennings.

CRONKITE: Well, that's certainly true. And it's quite a tribute to him that he -- that CBS held onto him so long under those circumstances. It surprised quite a few people at CBS and elsewhere that -- that, without being able to pull up the ratings beyond third in a three-man field, that they tolerated his being there for so long.

BLITZER: So you would have been happier if Bob Schieffer would have replaced Dan Rather a while ago?

CRONKITE: I would have thought so, certainly, if not Bob someone else.

(END VIDEOTAPE)

BLITZER: Bob Schieffer has been named as the interim anchor of "The CBS Evening News." Nobody knows how long that will stay. He'll continue to host "Face the Nation" Sunday mornings, as well. But I thought, Miles, that Walter Cronkite was pretty blunt in making it clear that he thought that CBS News would have been better off making this move awhile ago.

O'BRIEN: Well, you have to -- you have to play out one scenario in your mind here. You have to wonder, because of course, Walter Cronkite retired right at the top of his game, I guess it was '81. And he was still a young man and had many years left to go.

If they had kept him in that slot as long as the age of Dan Rather now, how, I wonder, might CBS be different today? I know that's a scenario which you don't have an easy answer to, but it's interesting to think about.

BLITZER: At that time, remember, Dan Rather was being wooed by ABC in a major -- in a major way. And CBS was very afraid that if they didn't give Dan Rather that seat, the Walter Cronkite main anchor seat, he would bolt. He would go to ABC, and CBS News did not want to lose Dan Rather.

That's why they effectively forced Walter Cronkite into that kind of early retirement, and a lot of people were nervous, upset about that at the time. But that's 24 years ago.

Dan Rather was hoping to last 25 years, spend another year in that seat, but the whole scandal involving that memo and President Bush when he was in the Texas Air National Guard came back to haunt him. That's a shadow clearly hanging over his exit Wednesday when he gives up that seat.

O'BRIEN: The saddest thing about it, final thought here from me, the saddest thing about it was when Dan Rather came into that slot, Walter Cronkite disappeared. And that was such a big mistake on the part of CBS. But Dan Rather insisted.

All right, Wolf Blitzer...

BLITZER: You will find, Miles, if I could just add one thing.

O'BRIEN: Yes. Please do.

BLITZER: That Walter Cronkite, now well into his 80s, he's as sharp as ever. He looks great, as you just saw. This is the only TV interview he's doing on Dan Rather's departure. And we'll air the whole thing on "WOLF BLITZER REPORTS" at 5 p.m. later today.

O'BRIEN: No one better to handle that. Walter Cronkite, one of the greats, a man who I had the great privilege to work with back in the fall of '98. I got to ask him important journalistic questions, Wolf, like, "Would you like a little more cream in that, Mr. Cronkite?" You know? All right.

The interview will air, one-on-one today, 5 p.m. Eastern, 2 Pacific. "WOLF BLITZER REPORTS." That's here on CNN. You won't see this on CBS -- Kyra.

PHILLIPS: We're going to take a quick check of the markets. You'll probably see that other places in addition to CNN.

But still to come, also, from rags to riches, here's something you will only see on CNN today. Immigrants without a dime in his pocket becomes a millionaire. And now he's giving back to U.S. troops. His story still to come.

(COMMERCIAL BREAK)

PHILLIPS: The latest scandal rocking the business world. Boeing has fired its boss, but it has nothing do with accounting.

O'BRIEN: Susan Lisovicz, joining us live from the New York Stock Exchange for -- I guess there was a little indiscretion in the executive suite, you might say.

(STOCK REPORT)

O'BRIEN: We look forward to it, Susan. Thank you very much.

PHILLIPS: So what makes a hero? Obvious descriptions like courage and bravery come to mind, of course, but how about somebody who's just willing to help those in need, with no agenda?

Our Sara Dorsey introduces us to a different kind of hero, one who's showing his appreciation for the valor of others.

(BEGIN VIDEOTAPE)

CA VAN TRAN, PHILANTHROPIST: Have a good time. Make yourself at home.

SARA DORSEY, CNN CORRESPONDENT (voice-over): Ca Van Tran has come a long way from his penniless beginnings in America.

TRAN: We have it. It's a surprise for you.

DORSEY: After a successful career, he's giving something back. This night, his mission is to make these wounded American soldiers feel appreciated for their sacrifice, with a special dinner.

DARREL LAWSON, WOUNDED SOLDIER: I was really amazed by the amount of people that appreciate what I did and what everyone else is doing.

DORSEY: But Tran's giving goes further than just hospitality. It began more than a decade ago, after a visit back to his native Vietnam after 15 years away in America.

TRAN: I was shocked, because it was very bleak, very dark. Nobody had the -- no job.

DORSEY: Tran says the Vietnam War left people there changed forever.

TRAN: War victims or land mine victims, and most of these soldiers that fought alongside of us, our allies, were crawling around, you know, begging and things in the street.

DORSEY: One man, Forn (ph), a former Vietnamese paratrooper, made a lasting impression that would change the lives of thousands.

TRAN: He moved around with two pieces of wood. This is the image that really haunted me. So I started a small, nonprofit organization to provide some assistance.

DORSEY: Tran is modest. His small, nonprofit organization, Vietnam Assistance for the Handicapped, or VNAH, has delivered over 84,000 wheelchairs, prosthetic limbs and other devices to people with disabilities all over Vietnam.

TRAN: They were desperately in need of help. So I thought I'd get something here going, a charity organization that we can give them some assistance. And that's what we did.

DORSEY: Now his focus is shifting, from one group wounded by war to another. The men are different, but the effects of fighting are not.

TRAN: We have to help them to get back to normal life, because they very much suffer and they're traumatized.

DORSEY: A helping hand, spanning the globe.

Sara Dorsey, CNN, Atlanta.

(END VIDEOTAPE)

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

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

Hi, Judy.

JUDY WOODRUFF, HOST, "INSIDE POLITICS": Hi. Thank you, both. What a heartening story.

Well, both President Bush and Mrs. Bush getting ready to speak an at event on helping America's youth, an issue the first lady says is near to her heart. We'll bring that to you live when it happens.

Plus, in his first year in office, California Governor Arnold Schwarzenegger was known as a deal maker. But now it seems as if that's changed. Our Bill Schneider looks at whether the governator has become the reforminator.

"INSIDE POLITICS" begins in just a moment.

(COMMERCIAL BREAK)

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Aired March 7, 2005 - 15:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The top ten things Martha Stewart learned in prison. The queen of style goes back to work for a pep talk with her employees. Find out how her time behind bars changed her and the goals of her company. We'll have a live report straight ahead.
Undersecretary of State John Bolton, the president's choice to be U.S. ambassador to the U.N. Secretary of state Condoleezza Rice announced his nomination today. Bolton, strong critic of the U.N. in the past, still faces Senate confirmation.

Debating a minimum wage hike. Senate Democrats want an increase of more than $2 an hour. Republicans are calling for a smaller raise. Even if the Senate approves the increase, however, the outlook is cloudy in the House. The minimum wage is $5.15 an hour. It's been that way for eight years.

MILES O'BRIEN, CNN ANCHOR: So we presume you haven't had enough for Martha Stewart. Don't answer that question.

There she was today, just four days out of prison, looking poised, looking splendid, holding courts in New York, midtown Manhattan, live television coverage, of course. The big news: she loves to vacuum and iron, or so she claims anyhow.

Allan Chernoff has been hoovering up details for us outside the building. Not allowed in. Probably not dressed well enough right, Allan?

ALLAN CHERNOFF, CNN CORRESPONDENT: Well, I hope I'm dressed well enough, Miles.

Martha Stewart has gone in from prisoner to corporate rock star in just a matter of days. To no one's surprise, she received a standing ovation from her staff, more than 400 people packed into an auditorium on the ninth floor of the building behind me. In fact, the very room where Martha Stewart back in September announced that she would be would begin serving her prison sentence.

Everyone also could notice that Martha Stewart was not wearing the ankle bracelet that she will have to wear as part of her home confinement over the next five months.

Martha Stewart thanked her staff very much. She also said that she wants the company now to wrap itself in family values. She said that Americans need to make family connections. They need to honor families.

She also said that her time away, as she and her company referred to her prison time, had put her life in perspective.

(BEGIN VIDEO CLIP)

MARTHA STEWART, FOUNDER, MARTHA STEWART LIVING OMNIMEDIA: I know now more than ever how important these values are for happiness, as an antidote for alienation and as for the deep experience of just being alive. This is what truly interests us, why we all come to work every day. Our passion is and always should be to make life better.

(END VIDEO CLIP)

CHERNOFF: This public display is all about the remarketing of Martha Stewart. Of course, the company needs to rebuild Martha so that it can attract advertisers. Keep in mind, advertising in "Martha Stewart Living" magazine over the past two years fell by 70 percent. That's ad revenue. So the company desperate to get the advertisers back, to get America loving Martha Stewart once again -- Miles.

O'BRIEN: All right. Allan, I didn't want to imply that you were shut out of the event. You were, obviously, in there.

And I just want to ask you, the whole thing that we've witnessed thus far seems as if it has been very tightly scripted, very well thought out, a lot of attention to detail. In other words, Martha's producing.

Clearly she's in charge, even though she can't be the officer of the company. Does she have to watch that? If she goes too far, could she run afoul of the law in some other way?

CHERNOFF: Well, of course she has, No. 1, the 48 hours that she's permitted out of her home during the next five months once she gets that ankle bracelet on in terms of just being out of the home.

In terms of being an executive of the company, there is still a securities and exchange lawsuit against Martha Stewart that asks that she be banned for life from serving as an officer or director of any public company.

Now we understand from sources very close to this case that a settlement is very likely and that the SEC is likely to agree to a five-year ban on Martha Stewart serving as an officer or director of her company. So that's what we can anticipate.

But that probably won't happen until the criminal case is entirely resolved. And keep in mind, on March 17 there is an appeal scheduled before a three-judge panel of the criminal conviction of Martha Stewart.

O'BRIEN: And meantime, the people in that room, they know who's boss. All right. Alan Chernoff, thanks very much -- Kyra.

PHILLIPS: At the Michael Jackson trial, the sister of Jackson's accuser was back on the stand today. Questioned by Jackson's attorney, she denied ever saying that her brother had problems in school, including expulsion. Last week the sister told the jury that her brother had changed for the worst after allegedly being molested by the defendant.

Also, today the judge in the case abruptly called a comfort break after Jackson stood at his table and rocked back and forth from foot to foot.

And in Los Angeles, it's the first full day of jury deliberation in the murder case of actor Robert Blake. Blake is charged with killing his wife, Bonny, outside an Italian restaurant.

In Blake's version he returned to the restaurant briefly to find a gun he'd left at dinner, and then back in the car, he discovered his wife was dead. Well, the revolver in question was not the murder weapon. Two men prosecutors say Blake approached to kill his wife have admitted to heavy drug use.

O'BRIEN: President Bush multitasking today, first choosing an outspoken arms control expert to be the next U.S. ambassador to the United Nations, his choice anyhow, and then flying up to Pittsburgh to push a new multimillion dollar initiative against gang violence.

Our Dana Bash traveling with the president -- Dana.

DANA BASH, CNN CORRESPONDENT: Hi, Miles. Well, remember during the State of the Union address, the president announced a new initiative to try to address problems with at-risk youth, and he said that his wife, the first lady, would be leading that charge.

Well, first lady Laura Bush has been traveling the country talking about this issue. Today is the first time the two will appear together to discuss her efforts and his efforts and will announce that there will be a White House conference, the first ever they say, this fall to discuss the problems with at-risk youth, particularly when it comes to boys.

But meanwhile, back in Washington, the president left it to his secretary of state, Condoleezza Rice, to announce his new pick for U.S. ambassador to the United Nations. And it was a bit of a surprise and somewhat controversial who was chosen.

It is John Bolton. Now he is undersecretary of state for arms control, someone who is known to have perhaps ruffled some feathers in some talks, particularly with the Chinese, and a few years ago with the North Koreans during those six-way nuclear talks.

The secretary of state, when she introduced him in her own, perhaps diplomatic parlance, said that he is a tough-minded diplomat.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: 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 the United Nations has begun to reform itself to help meet the challenging agenda before the international community.

JOHN BOLTON, NOMINEE FOR U.S. AMBASSADOR TO U.N.: Close cooperation and the time honored tradition of frank communication is central to achieving our mutually held objectives. The United Nations affords us the opportunity to move our policies forward, together with unity of purpose.

(END VIDEO CLIP)

BASH: Now, that phrase, unity of purpose, is quite key, because one of the reasons why Bolton is a controversial pick is because he has spent his career, particularly in academia, being highly critical of the United Nations that he will go now serve with.

He said -- Democrats are actually sending around some of his old quotes already. For example, in 1994, Bolton saying that there's no such thing as the United Nations. If the U.N. secretary building in New York lost ten stories, it wouldn't make a bit of a difference.

Now Bolton, it is important to note, has said since that perhaps he was more free to talk as an academic than he is now when he is serving the president, but certainly this is likely to raise some eyebrows, particularly in European countries and at international organizations like the United Nations, as the president does say he wants to try to repair relations, particularly since they were so fractured at the U.N. over the Iraq war --- Miles.

O'BRIEN: CNN's Dana Bash traveling with the president -- Kyra.

PHILLIPS: Twenty thousand mourners packed the Piazza in Rome for the state funeral of an agent shot while helping an ex-hostage out of Iraq.

Nicola Calipari, 50-year-old father of two, is being remembered as a hero. He died while shielding journalist Giuliana Sgrena from U.S. fire at an Iraqi checkpoint. Sgrena was wounded.

Italy says it wants answers. Sgrena has disputed the U.S. military's account of the attack. Today she talked to CNN.

(BEGIN VIDEO CLIP)

GIULIANA SGRENA, FREED ITALIAN HOSTAGE (through translator): It is not up to me to say it wasn't an ambush. It is up to those who did this action. We can call it any way you like until we have the elements to 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.

(END VIDEO CLIP)

PHILLIPS: The White House calls the shooting a horrific accident and promises a full investigation.

O'BRIEN: A deadly day of attacks in Iraq. A suicide car bomb targeting an Iraqi security officer killed five Iraqis, wounded 27 in Balad about 50 miles north of Baghdad. Most of the casualties, students lined up to attend a school near the officers' home. In all, violence today killed at least 18, wounded dozens more.

Meanwhile a fire burns in an oil field north of Baghdad. Insurgents blew up the pipeline in Samarra in efforts to weaken Iraq's economy.

The U.S. may be closing in on the mastermind behind many deadly attacks in Iraq. Senior U.S. military and Pentagon officials are telling CNN U.S. forces have come very physically close to catching Abu Musab al-Zarqawi.

These photographs are believed to be of Zarqawi. Military forces say the pictures were found in a video camera captured during a raid several weeks ago. It's unclear how recently the pictures were taken, but it appears they were taken at the same time and place.

PHILLIPS: Elsewhere around the world, British Prime Minister Tony Blair is facing a blow to his proposed new anti-terrorism law. The House of Lords has amended the bill to say only judges can impose curfews and other restrictions on terror suspects. Blair wanted to give the home secretary that power.

The White House says today's announcement in Damascus about Syrian troop withdrawals from Lebanon doesn't go far enough. The presidents of Syria and Lebanon committed today to the pullback of Syria forces into the Bekaa Valley before March 30. After that the countries are to decide when to pull the troops completely out of Lebanon.

A spokesperson for Pope John Paul II says the pontiff hopes to be back in the Vatican by holy week. The pope is recovering from breathing problems in a Rome hospital.

O'BRIEN: Well, as Dan Rather prepares to step down, some criticism over the retiring anchor heats up even more. Straight ahead, Wolf Blitzer talks with his predecessor. Walter Cronkite will weigh in on Rather's retirement. He'll give us a preview of that interview up next.

PHILLIPS: Later on LIVE FROM, giving back: find out how this former Vietnam war translator is helping today's troops.

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O'BRIEN: Well, Dan Rather is out and his predecessor, Walter Cronkite, is speaking out. Wolf Blitzer spent some time with the great Walter Cronkite today and has an extended interview which he will, of course, show you on his program, "WOLF BLITZER REPORTS," but he's here to share some tidbits with us.

Wolf, good to have you with us. I read that Ken Auletta piece in "The New Yorker." I was amazed at some of the comments that some of Dan Rather's CBS colleagues offered up. And among them Walter Cronkite saying, you know, he never felt right in that slot. Did he, when you talked to him today, did he continue in that vain?

WOLF BLITZER, HOST, "WOLF BLITZER REPORTS": To a certain degree. You know, he said nice things about Dan Rather, this being his last week. Wednesday will be his last day, Miles.

But he made it clear that he was surprised that CBS News actually had kept Dan Rather in that chief anchor slot for so long, given the fact that ratings were so bad for "The CBS Evening News."

And he did note that, unlike Tom Brokaw and Peter Jennings, Dan Rather had a different style that wasn't as natural to being an anchorman as the other two.

But what was most newsworthy, I thought, because I never heard him say this, he thought CBS News should have asked Dan Rather to step down awhile ago and put Bob Schieffer into that seat. He had great respect for Bob Schieffer.

Let's play an excerpt from this interview I did with Walter Cronkite just a little while ago.

(BEGIN VIDEOTAPE)

WALTER CRONKITE, FORMER CBS NEWS ANCHOR: He is, to my mind, the man who, quite frankly, although Dan did a fine job, I would like have to have seen in there a long time ago. He would have -- he would have given the others a real run for their money.

BLITZER: Better than Dan Rather would have done? Because he was perennially in third place in the ratings, behind Tom Brokaw and Peter Jennings.

CRONKITE: Well, that's certainly true. And it's quite a tribute to him that he -- that CBS held onto him so long under those circumstances. It surprised quite a few people at CBS and elsewhere that -- that, without being able to pull up the ratings beyond third in a three-man field, that they tolerated his being there for so long.

BLITZER: So you would have been happier if Bob Schieffer would have replaced Dan Rather a while ago?

CRONKITE: I would have thought so, certainly, if not Bob someone else.

(END VIDEOTAPE)

BLITZER: Bob Schieffer has been named as the interim anchor of "The CBS Evening News." Nobody knows how long that will stay. He'll continue to host "Face the Nation" Sunday mornings, as well. But I thought, Miles, that Walter Cronkite was pretty blunt in making it clear that he thought that CBS News would have been better off making this move awhile ago.

O'BRIEN: Well, you have to -- you have to play out one scenario in your mind here. You have to wonder, because of course, Walter Cronkite retired right at the top of his game, I guess it was '81. And he was still a young man and had many years left to go.

If they had kept him in that slot as long as the age of Dan Rather now, how, I wonder, might CBS be different today? I know that's a scenario which you don't have an easy answer to, but it's interesting to think about.

BLITZER: At that time, remember, Dan Rather was being wooed by ABC in a major -- in a major way. And CBS was very afraid that if they didn't give Dan Rather that seat, the Walter Cronkite main anchor seat, he would bolt. He would go to ABC, and CBS News did not want to lose Dan Rather.

That's why they effectively forced Walter Cronkite into that kind of early retirement, and a lot of people were nervous, upset about that at the time. But that's 24 years ago.

Dan Rather was hoping to last 25 years, spend another year in that seat, but the whole scandal involving that memo and President Bush when he was in the Texas Air National Guard came back to haunt him. That's a shadow clearly hanging over his exit Wednesday when he gives up that seat.

O'BRIEN: The saddest thing about it, final thought here from me, the saddest thing about it was when Dan Rather came into that slot, Walter Cronkite disappeared. And that was such a big mistake on the part of CBS. But Dan Rather insisted.

All right, Wolf Blitzer...

BLITZER: You will find, Miles, if I could just add one thing.

O'BRIEN: Yes. Please do.

BLITZER: That Walter Cronkite, now well into his 80s, he's as sharp as ever. He looks great, as you just saw. This is the only TV interview he's doing on Dan Rather's departure. And we'll air the whole thing on "WOLF BLITZER REPORTS" at 5 p.m. later today.

O'BRIEN: No one better to handle that. Walter Cronkite, one of the greats, a man who I had the great privilege to work with back in the fall of '98. I got to ask him important journalistic questions, Wolf, like, "Would you like a little more cream in that, Mr. Cronkite?" You know? All right.

The interview will air, one-on-one today, 5 p.m. Eastern, 2 Pacific. "WOLF BLITZER REPORTS." That's here on CNN. You won't see this on CBS -- Kyra.

PHILLIPS: We're going to take a quick check of the markets. You'll probably see that other places in addition to CNN.

But still to come, also, from rags to riches, here's something you will only see on CNN today. Immigrants without a dime in his pocket becomes a millionaire. And now he's giving back to U.S. troops. His story still to come.

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PHILLIPS: The latest scandal rocking the business world. Boeing has fired its boss, but it has nothing do with accounting.

O'BRIEN: Susan Lisovicz, joining us live from the New York Stock Exchange for -- I guess there was a little indiscretion in the executive suite, you might say.

(STOCK REPORT)

O'BRIEN: We look forward to it, Susan. Thank you very much.

PHILLIPS: So what makes a hero? Obvious descriptions like courage and bravery come to mind, of course, but how about somebody who's just willing to help those in need, with no agenda?

Our Sara Dorsey introduces us to a different kind of hero, one who's showing his appreciation for the valor of others.

(BEGIN VIDEOTAPE)

CA VAN TRAN, PHILANTHROPIST: Have a good time. Make yourself at home.

SARA DORSEY, CNN CORRESPONDENT (voice-over): Ca Van Tran has come a long way from his penniless beginnings in America.

TRAN: We have it. It's a surprise for you.

DORSEY: After a successful career, he's giving something back. This night, his mission is to make these wounded American soldiers feel appreciated for their sacrifice, with a special dinner.

DARREL LAWSON, WOUNDED SOLDIER: I was really amazed by the amount of people that appreciate what I did and what everyone else is doing.

DORSEY: But Tran's giving goes further than just hospitality. It began more than a decade ago, after a visit back to his native Vietnam after 15 years away in America.

TRAN: I was shocked, because it was very bleak, very dark. Nobody had the -- no job.

DORSEY: Tran says the Vietnam War left people there changed forever.

TRAN: War victims or land mine victims, and most of these soldiers that fought alongside of us, our allies, were crawling around, you know, begging and things in the street.

DORSEY: One man, Forn (ph), a former Vietnamese paratrooper, made a lasting impression that would change the lives of thousands.

TRAN: He moved around with two pieces of wood. This is the image that really haunted me. So I started a small, nonprofit organization to provide some assistance.

DORSEY: Tran is modest. His small, nonprofit organization, Vietnam Assistance for the Handicapped, or VNAH, has delivered over 84,000 wheelchairs, prosthetic limbs and other devices to people with disabilities all over Vietnam.

TRAN: They were desperately in need of help. So I thought I'd get something here going, a charity organization that we can give them some assistance. And that's what we did.

DORSEY: Now his focus is shifting, from one group wounded by war to another. The men are different, but the effects of fighting are not.

TRAN: We have to help them to get back to normal life, because they very much suffer and they're traumatized.

DORSEY: A helping hand, spanning the globe.

Sara Dorsey, CNN, Atlanta.

(END VIDEOTAPE)

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

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

Hi, Judy.

JUDY WOODRUFF, HOST, "INSIDE POLITICS": Hi. Thank you, both. What a heartening story.

Well, both President Bush and Mrs. Bush getting ready to speak an at event on helping America's youth, an issue the first lady says is near to her heart. We'll bring that to you live when it happens.

Plus, in his first year in office, California Governor Arnold Schwarzenegger was known as a deal maker. But now it seems as if that's changed. Our Bill Schneider looks at whether the governator has become the reforminator.

"INSIDE POLITICS" begins in just a moment.

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