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Oil-for-Food Findings; Why No Tsunami?; Terri Schiavo Case
Aired March 29, 2005 - 14:00 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.
BETTY NGUYEN, CNN ANCHOR: In Pinellas Park, Florida, Terri Schiavo now in her 12th day without food and water. This hour, we'll talk with a mother about why she's being her children to protest outside the Florida hospice.
MILES O'BRIEN, CNN ANCHOR: A massive, destructive earthquake, but this time no tsunami. Scientists say the reason why is found deep under the sea.
NGUYEN: And a freak accident while playing basketball cuts off a boy's hands and foot. Amazingly, his doctors say he will play again.
O'BRIEN: And if you think you're a savvy shopper, think again. A marketer takes you inside the traps and the tricks waiting for you inside the grocery store.
From the CNN Center in Atlanta, I'm Miles O'Brien.
NGUYEN: And I'm Betty Nguyen, in for Kyra Phillips today. This hour of CNN's LIVE FROM starts right now.
O'BRIEN: A program corrupt, billions skimmed. Who's to blame? Investigators release their preliminary report on the U.N.'s oil for food scandal. CNN senior U.N. correspondent Richard Roth joining us live now with details -- Richard.
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Miles, anybody connected with oil-for-food or an observer has been saying that anyone connected to this story bears some responsibility. But today the focus was on Kofi Annan, the secretary-general, and his son, Kojo, the second interim report filed by Paul Volcker. And that report was of high interest to reporters who gathered a few blocks from here to a Manhattan hotel to start reading frantically before Paul Volcker started briefing at this press conference.
Basically, among the highlights, somewhat of a mixed bag. A report card for Kofi Annan. They are saying that he should not be blamed, or he does not bear any responsibility for illegal actions or improper conduct regarding the awarding of a bid to a Swiss-based company, Cotecna, which also had employed his son, Kojo.
(BEGIN VIDEO CLIP)
PAUL VOLCKER, OIL-FOR-FOOD INVESTIGATOR: Diligent and extensive search of written and electronic records and intensive interviews with all of those involved provided no evidence of any influence for the secretary-general on the bidding and selection process for the humanitarian goods inspector in 1998. As I said, (UNINTELLIGIBLE) by the fact it was, indeed, the low bidder by a wide margin.
(END VIDEO CLIP)
ROTH: Volcker said the evidence is not reasonably sufficient to show that Kofi Annan was aware of this bid to the Cotecna company, even though he knew his son worked for Cotecna. However, in the report, it says Kojo Annan deceived his father and also the commission, and he's not been cooperating for the last two months. His lawyer wrote in an annex for the report that he has been cooperating, but he does understand that he bears full responsibility for some of his actions.
What did Kofi Annan do wrong, according to Paul Volcker? According to the panel, Kofi Annan commissioned an inquiry of how the bid was awarded and whether there was any conflict of interest with Kojo Annan. And, in effect, it came back as a one-day response that everything was all clear.
(BEGIN VIDEO CLIP)
VOLCKER: We think the investigation that he initiated was inadequate. And his own inquiries were inadequate. That is why we are here. So far as what he was told, he was falsely told by his son and by Cotecna about the continued employment of his son after 1998.
(END VIDEO CLIP)
ROTH: Kofi Annan will respond in a full press conference within the hour. But in a statement already released, Kofi Annan said, "As I had always hoped and firmly believed, the inquiry has cleared me of any wrongdoing" --Miles.
O'BRIEN: Well, but you could make a case here that it was such a cursory effort to look into this that, at best, it was incompetence.
ROTH: And there were also several meetings between Kofi Annan and the leader of Cotecna, the company that is connected to all of this. And the investigators blame Cotecna for not telling the truth.
Paul Volcker, a few minutes ago said, yes, they lied to us about the nature of the relationship. Kojo Annan also deceived a lot of parties regarding how he made up the $400,000. The business connection continued with Cotecna right up until last year even though the father was not aware.
But there were meetings where Kofi Annan was with Cotecna executives. They say some of it was social, that there was no link. But Paul Volcker would not be drawn into the bigger questions, is Kofi Annan damaged politically, should he be allowed to stay ast the secretary-general? But the State Department and the White House so far seem to be supporting Kofi -- Miles.
O'BRIEN: All right. Richard Roth at the United Nations. We'll be hearing more from him later in the day, obviously -- Betty.
NGUYEN: Democracy in action. Or inaction. This is the Baghdad meeting hall where the newly-elected Iraqi National Assembly tried and failed today for the second time to choose a speaker. It's hoped the job will go to a Sunni in deference to their former dominance, despite their minority status population-wise. Sunnis largely boycotted the January elections and are thought to be fueling the insurgency.
Now, the difficulty in finding a speaker candidate has caused a bottleneck in the body's other duties, and today it prompted the acting speaker to pull the plug on TV coverage of the proceedings. At the Pentagon, however, as you may have seen live here on CNN last hour, Donald Rumsfeld is not concerned.
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, DEFENSE SECRETARY: Is there going to be a tug and a pull and a debate and an argument, and what about this and what about that? Sure, it will be, and it's going on right now. And it's tough stuff because there's a lot at stake. Those people are deeply concerned about the rights of minorities, and they have every right to be because they've lived in a society that did not respect the rights of minorities.
(END VIDEO CLIP)
NGUYEN: The assembly is expected to meet again on Sunday.
They're assessing the quake damage and looking for victims today in Indonesia. At least 330 people are known dead on the islands of Nias and Simeulue, which apparently took the brunt of yesterday's massive 8.5 magnitude earthquake. Indonesian officials fear the death toll could go even higher. It is the second major quake to hit the region in the last three months, and it triggered panic among many tsunami survivors.
O'BRIEN: Well, the quake was powerful and the epicenter was close to the one last December that triggered the deadly tsunami. No killer waves materialized this time. Scientists believe that's because the earth ruptured in a different direction.
Researchers are studying the underwater quake zone. One reveals some interesting finds to our Atika Shubert.
(BEGIN VIDEOTAPE)
ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): The massive earthquake struck early morning, triggering panic. Residents in Thailand, Indonesia and India fled into the streets in fear of another killer tsunami. But this time no sign of the giant waves that left more than 300,000 dead or missing last December. Scientists are wondering why.
(on camera): Part of the answer may be in this video recently taken by a remotely-controlled Japanese submersible called the Hyper Dolphin, more than 2,000 meters below the ocean's surface. (voice-over): These are the first pictures of the seabed around the epicenter of the original December earthquake. It shows a massive 1,300-kilometer crack in the ocean floor. That violent rupture is what created the killer waves. Wataru Azuma, who was on this underwater expedition, explains.
"The fault is segmented, and it stands on a precarious balance. Each piece sustaining the other," he explains. "When the balance is lost in a major earthquake, it destabilizes the entire area. That is why we warned that another earthquake was likely."
Even though the epicenter of this latest earthquake was very close to December's, it appears to have affected a much smaller area of seabed, creating only small waves. "We have to wait for exact data," he says. "Most likely, however, the tsunami waves were minimal because the epicenter of the earthquake is much more shallow. There was not as much of a gap on the ocean floor."
Professor Azuma warns aftershocks might continue. In the meantime, he continues to study the results of the underwater survey, hoping to find clues to predicting earthquakes and preventing disaster.
Atika Shubert, CNN, Tokyo.
(END VIDEOTAPE)
O'BRIEN: All right. Let's turn to the Terri Schiavo story, Pinellas Park, Florida.
That's Randall Terry, who crusades as a pro-lifer, and who has taken up the cause of Terri Schiavo here, insisting that that feeding tube not be removed. Of course, now, day 11, having had that tube removed, let's listen in.
MARY SCHINDLER, TERRI SCHIAVO'S MOTHER: First of all, I wanted to thank the Reverend Jesse Jackson for coming, giving us his support and supporting our family and praying with us. It was wonderful.
Second of all, I'd like to appeal to the Florida senators to please, please pass this new bill. Terri is still fighting. She's still alive. She's trying with all her might. She does not want to die. I'm begging them to please fight and give Terri a chance.
Thank you.
RANDALL TERRY, ACTIVIST: Hold on a second. For point of clarity, the bill that was defeated last week, if one of the members of the Senate who voted against it will ask for it to be brought up for a vote, we actually don't need new legislation. So this is a point of clarity because, as you know, Mary is not a lobbyist. She's a mom.
So the bill that was defeated last week, Reverend Jackson has been on the phone continually with members of the Senate pleading with them to change their vote. There are several members of the Senate who have indicated a willingness to do so.
So if we can get the votes, this bill will pass. So if Terri is going to fight this hard, this long, and in her struggle for life, we cannot give up. And that is what this is all about. If she is fighting, we're going to keep fighting.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Mr. Terry, a further point of clarity. The legislation, is it correct it would require a formal living will and also provide for guardianship switches? Is that...
TERRY: The guardianship language was not in the bill. And the issue of who has the authority to intervene, if there is a dispute, was the disputed thing.
Now, let me explain something. This bill can be amended later. If people have concerns -- there were people who were supportive of Terri but had legitimate concerns about the Bill. To them, we say this: save Terri.
Put the ladder up to the building. The building is on fire. We want to save this person.
Maybe there's a problem with the ladder truck and it needs to be repaired, but let's repair it next week. In the meantime, let's use what we have at our disposal to save Terri.
Do you have anything else you want to say?
FRANKEN: May I ask, Mrs. Schindler, if you could describe your daughter's condition, please?
TERRY: All right. Come on. Bobby -- bobby...
QUESTION: Mr. Terry, could you explain the sequence of events that you hoped would happen if that bill were to go through?
TERRY: The Senate and the House will both be in session tomorrow. If they take this up, and the votes are there, it could be signed into law by the governor, and the governor could immediately take her into custody and begin hydration once again.
She is still responding. And in a little while, you're going to hear from Bobby. He's going to update you. He was just in there.
But even as of last night, she still urinated, so her kidneys are still functioning. And as far as anyone can see, all of her vital organs are still functioning. Her pulse is still strong. And she is still conscious and responding to family members and to loved ones.
This literally is a miracle. It's happening before our eyes. And Jesse Jackson, Reverend Jackson's presence here, gave tremendous new momentum, tremendous new hope. Keep hope alive.
And the family is -- as you heard, Mary pleading to the members of the Senate, please take the bill up again. So we are looking for those three votes. That is what's going on right now.
QUESTION: Didn't Reverend Jackson -- didn't Reverend Jackson say that the people said they might consider if it was amended, but no one was inclined to take up the legislation that was voted on?
TERRY: That is still being discussed with them right now. As I said to the other gentleman, if you have a building on fire and you only have one ladder at your disposal to save the person, use the ladder that's there, and make repairs on the ladder after the job is done.
QUESTION: Randall, how would this address the retroactivity?
QUESTION: (UNINTELLIGIBLE)?
RANDALL: Well, if you bring three senators who were on the opposing side before, one of them can ask that the bill be voted on again. All right? It's...
QUESTION: Who's the one who voted against it? What's special about these three?
RANDALL: Well, Reverend Jackson is talking to all of the members of the Black Senate Caucus. We have other people that are calling other swing senators from both parties.
This is way beyond a partisan issue. This is not about partisan politics at this point. And it's about -- it's about responding to the cry of a dying woman who is fighting for her life, a woman who is starving, who is dehydrating, and yet still, against all odds, against all projections, clinging to life.
So I know that there are senators in Tallahassee who are deeply troubled in their conscience. This is an opportunity for them to respond to the plea of their own heart so that Terri does not expire because of their lack of action.
Any other questions?
FRANKEN: Yes. It would be -- it would be unusual, I think most people would agree, to see you appearing in the same forum on the same side as Reverend Jesse Jackson. May I ask you to comment on that?
TERRY: In my wildest dreams, I could never have pictured this. But I have to tell you, I was weeping inside there. It was one of the most profound experiences I've had in at least 10 years, maybe 15 years.
His pastoral counsel to the family was just moving and beautiful. His -- his -- the -- just the sense. I mean, him talking about Resurrection Sunday, Christ triumphing over death, following the fingerprints of god when it just looks like all hope is lost that god still comes through, it was very moving.
It was very spiritual. It was completely on point. And I just -- I could not, in my wildest dreams, have pictured this. Ma'am, you were next. Please, please.
QUESTION: What was the difference between the bill as far as the retroactivity issue that got shut down last time?
TERRY: I'm sorry?
QUESTION: What's the difference between this Bill and...
TERRY: Well, the other bill, the problem it was so focused on Terri that the Supreme Court ruled that it was unconstitutional.
O'BRIEN: Somewhere probably past the 11th hour, Randall Terry pleading there for the Florida legislature to do something, anything. The analogy he used is to build some sort of legislative ladder to try to save Terri Schiavo from what he describes as a burning building.
He preceded by Mary Schindler, mother of Terri Schiavo, who described her daughter as fighting, alive, and doesn't want to die. Of course, she has been in a persistent vegetative state now since 1990. And many would contest the fact that she has any feelings along those lines.
But that, of course, is right at the heart of this ongoing debate that we've seen play out. Now been 11 days since that feeding tube was disconnected in Pinellas Park, Florida.
We're watching it for you. Back with more in just a moment.
(COMMERCIAL BREAK)
NGUYEN: This just into CNN. The national director of programs for the Boy Scouts of America has been charged with receiving and distributing child pornography. For the latest on this, let's go live to Dallas and CNN's Ed Lavandera.
Ed, what do you know?
ED LAVANDERA, CNN CORRESPONDENT: Hi, Betty.
Well, this charge is coming from a U.S. attorney's office in Ft. Worth, Texas, where they say that they have charged Douglas Sovereign Smith Jr. (ph), who, as you mentioned, is the national director of programs with the Boy Scouts of America with one count of federal charge of knowing and receiving -- receiving and distributing child pornography. The charge also goes on to say that there were Internet computer images found on his computer, photographs of minors engaging in sexually explicit conduct.
The Boy Scouts of America say they are shocked and dismayed by this. But when they had learned of this investigation back in February, that Mr. Smith had volunteered to retire after 39 years with the Boy Scouts. They also say that as the national director of programs, that he had been working in an administrative position away from children. We have tried to contact Mr. Smith here this afternoon, but we have not been successful at this point. We've also placed calls to his attorney, and are awaiting a response from him as well.
Mr. Smith is expected to show up in federal court tomorrow morning. U.S. attorneys, officials here in the north Texas area say they expect him to plead guilty. That is their side. We have not heard that from Mr. Smith or his attorney so far at this point.
But that is the latest news from here in Dallas, that the national director of programs with the Boy Scouts of America is facing one federal charge of knowing -- of receiving and distributing child pornography -- Betty.
NGUYEN: And Douglas Smith is a man who's been with the organization for 39 years. We understand this investigation started in Germany. Do we know what tipped off investigators to Mr. Smith?
LAVANDERA: It's hard to say at this point. The charge that we've been able to get the information from just says that there is computer images and Internet images that they had been going through to kind of build their case. But beyond that at this point, we don't have much more information.
NGUYEN: All right. CNN's Ed Lavandera in Dallas for us. Thank you, Ed.
O'BRIEN: Well, doctors in Australia say a 10-year-old boy is smiling and wiggling his fingers today.
NGUYEN: Which is amazing after a freak accident cut off both his hands and his foot. We'll have the rest of his amazing story ahead on LIVE FROM.
O'BRIEN: And does ice cream taste better in round containers? These are questions to ponder. A food marketer takes you inside the tricks of the trade to get you to pick certain products in the grocery store. It's a plot, you know.
SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange. Coming up, thinking of switching your cell phone service? You'll want to hear our next report. I'll tell you which carrier rang up the most complaints next on LIVE FROM.
Stay tuned.
(COMMERCIAL BREAK)
O'BRIEN: So you make your list, you check it twice, and you still fall prey to cagey marketing ploys the at supermarket.
NGUYEN: Every time. How do you end up with a cart full of stuff you never planned to buy? Well, beside the fact that you had a coupon for it?
CNN's Heidi Collins on how advertisers play Pavlov and turn us into salivating packs of consuming canines.
(BEGIN VIDEOTAPE)
HEIDI COLLINS, CNN CORRESPONDENT (voice-over): America's typical supermarket, as many as 100,000 products clamoring for your attention. How do you choose? We went shopping with marketing expert Dahrel Riyea, CEO of Cheskin Consulting Firm, to get a firsthand look at the methods companies use to get you to buy what they're selling.
DAHREL RHEA, CHESKIN CONSULTING: One of the things manufacturers do, and designers do, is, they really sweat the details. Here on the Hormel logo, things like this sprig of parsley are engineered into that design to communicate freshness.
COLLINS: Come on, that little tiny bit of green, that sprig, is actually going to make me say, huh, this must be fresh?
RHEA: It will add to it.
COLLINS: While you may not realize it, packages send subtle messages and tap our emotions. The thinking is, the sunrise on Folgers coffee connects with the morning ritual of sipping that perfect cup. The glass jar of DelMonte fruit reminds us of grandma's kitchen. The film reel and colors on Orville Redenbacher's popcorn have that movie-theater feel.
And all of these visual cues don't just manipulate our first impressions.
RHEA: The packaging does influence the taste of the product as well. We do taste products with our eyes.
COLLINS: Look no further than the ice cream aisle.
RHEA: Packaging that's in a cylindrical container is perceived as tasting better, and being more premium than packaging in a rectangular package. It's the combination of the fact that we've got stripes. Those stripes kind of hearken back to an old-fashioned ice cream parlor. That we've got ice cream in a bowl. We've got flavor cues that are hitting us.
COLLINS: And hitting our wallets. The fancier presentation triggers our impulse to buy and pay more. In this store, $3.19 will get you 100 bags of straightforward Saladda Tea at regular price or just 20 bags of the more ornate Twinings.
(on camera): And when you actually do the comparison in here it's $3.19 basically a pound. Here it's nearly $16 a pound. That better be some darn good tea!
RHEA: Absolutely. You have some going up to $17 or $18 a pound.
COLLINS: And so is it really worth more? Is it really better tea?
RHEA: The people who would buy that tea would probably tell you that it is worth more, that they actually get more out of it, that it tastes better.
COLLINS (voice-over): In fact, it often comes down to trust. And who do you trust more than these familiar characters?
Caring or not, these personalities are carefully designed and tested for mass appeal. It's all about the right look to get us to make that split second decision to go from shelf to cart.
Rhea calls shopping speed dating with products.
RHEA: We're using our intuition to rapidly make those kind of assessments and those happen on an unconscious level.
UNIDENTIFIED MALE: Can I have it?
COLLINS: And packaging isn't just for grownups? A lot of prime store real estate is dedicated to little shoppers.
RHEA: Here we're looking at a fruit roll-up product that has tongue talk tattoos.
COLLINS: Oh, yummy.
RHEA: This is really toy packaging, not food packaging. We've got Barbie, "Shark Tales," "Shrek," really fun packaging that evokes an entertainment experience.
COLLINS: So big or small, old or young, are we all being manipulated?
MALCOLM GLADWELL, AUTHOR "BLINK": I think we're being manipulated all the time. And I think we have to know the extent to which our unconscious is being manipulated. Once you know about that, you do make different decisions and you make smarter decisions, and you're at least in charge.
COLLINS: Two-thirds of our grocery purchases are unplanned. What can you do to resist impulse buying? Well, make sure specials are special. Be wary of those end-of-aisle displays. Not everything there is on sale. Make a detailed shopping list complete with brand names and slow down, interrupt the impulse. And if all else fails...
RHEA: Just shop online. You won't have the sensory overload that we get in a grocery store like this.
COLLINS: Heidi Collins, CNN, New York.
(END VIDEOTAPE)
O'BRIEN: You know, I would add one thing.
NGUYEN: Yes?
O'BRIEN: Never go hungry.
NGUYEN: If you go hungry to the grocery store, you are going to buy so much more than you originally planned on doing.
O'BRIEN: Yes.
NGUYEN: Stick to the list. That's the key there.
O'BRIEN: And stick to the script, we're told, by the producers.
NGUYEN: Yes. Hurry up.
O'BRIEN: I'd love to go on about fruit roll-ups, but we can't.
NGUYEN: Not now, Miles.
O'BRIEN: All right.
NGUYEN: Tonight, Anderson Cooper continues a special weeklong series on the power of your instinct, and a topic that may put you on the spot. Find out if you instinctively believe one race is superior to the others. That's tonight on "ANDERSON COOPER 360" at 7:00 Eastern.
O'BRIEN: All right. That's a provocative one.
Cell phone providers rang up more complaints last year than the year before. So how does your carrier rank? That was my attempt at the "Can you hear me now" stuff?
NGUYEN: Can you hear me now?
O'BRIEN: Yes.
(STOCK MARKET REPORT)
Aired March 29, 2005 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: In Pinellas Park, Florida, Terri Schiavo now in her 12th day without food and water. This hour, we'll talk with a mother about why she's being her children to protest outside the Florida hospice.
MILES O'BRIEN, CNN ANCHOR: A massive, destructive earthquake, but this time no tsunami. Scientists say the reason why is found deep under the sea.
NGUYEN: And a freak accident while playing basketball cuts off a boy's hands and foot. Amazingly, his doctors say he will play again.
O'BRIEN: And if you think you're a savvy shopper, think again. A marketer takes you inside the traps and the tricks waiting for you inside the grocery store.
From the CNN Center in Atlanta, I'm Miles O'Brien.
NGUYEN: And I'm Betty Nguyen, in for Kyra Phillips today. This hour of CNN's LIVE FROM starts right now.
O'BRIEN: A program corrupt, billions skimmed. Who's to blame? Investigators release their preliminary report on the U.N.'s oil for food scandal. CNN senior U.N. correspondent Richard Roth joining us live now with details -- Richard.
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Miles, anybody connected with oil-for-food or an observer has been saying that anyone connected to this story bears some responsibility. But today the focus was on Kofi Annan, the secretary-general, and his son, Kojo, the second interim report filed by Paul Volcker. And that report was of high interest to reporters who gathered a few blocks from here to a Manhattan hotel to start reading frantically before Paul Volcker started briefing at this press conference.
Basically, among the highlights, somewhat of a mixed bag. A report card for Kofi Annan. They are saying that he should not be blamed, or he does not bear any responsibility for illegal actions or improper conduct regarding the awarding of a bid to a Swiss-based company, Cotecna, which also had employed his son, Kojo.
(BEGIN VIDEO CLIP)
PAUL VOLCKER, OIL-FOR-FOOD INVESTIGATOR: Diligent and extensive search of written and electronic records and intensive interviews with all of those involved provided no evidence of any influence for the secretary-general on the bidding and selection process for the humanitarian goods inspector in 1998. As I said, (UNINTELLIGIBLE) by the fact it was, indeed, the low bidder by a wide margin.
(END VIDEO CLIP)
ROTH: Volcker said the evidence is not reasonably sufficient to show that Kofi Annan was aware of this bid to the Cotecna company, even though he knew his son worked for Cotecna. However, in the report, it says Kojo Annan deceived his father and also the commission, and he's not been cooperating for the last two months. His lawyer wrote in an annex for the report that he has been cooperating, but he does understand that he bears full responsibility for some of his actions.
What did Kofi Annan do wrong, according to Paul Volcker? According to the panel, Kofi Annan commissioned an inquiry of how the bid was awarded and whether there was any conflict of interest with Kojo Annan. And, in effect, it came back as a one-day response that everything was all clear.
(BEGIN VIDEO CLIP)
VOLCKER: We think the investigation that he initiated was inadequate. And his own inquiries were inadequate. That is why we are here. So far as what he was told, he was falsely told by his son and by Cotecna about the continued employment of his son after 1998.
(END VIDEO CLIP)
ROTH: Kofi Annan will respond in a full press conference within the hour. But in a statement already released, Kofi Annan said, "As I had always hoped and firmly believed, the inquiry has cleared me of any wrongdoing" --Miles.
O'BRIEN: Well, but you could make a case here that it was such a cursory effort to look into this that, at best, it was incompetence.
ROTH: And there were also several meetings between Kofi Annan and the leader of Cotecna, the company that is connected to all of this. And the investigators blame Cotecna for not telling the truth.
Paul Volcker, a few minutes ago said, yes, they lied to us about the nature of the relationship. Kojo Annan also deceived a lot of parties regarding how he made up the $400,000. The business connection continued with Cotecna right up until last year even though the father was not aware.
But there were meetings where Kofi Annan was with Cotecna executives. They say some of it was social, that there was no link. But Paul Volcker would not be drawn into the bigger questions, is Kofi Annan damaged politically, should he be allowed to stay ast the secretary-general? But the State Department and the White House so far seem to be supporting Kofi -- Miles.
O'BRIEN: All right. Richard Roth at the United Nations. We'll be hearing more from him later in the day, obviously -- Betty.
NGUYEN: Democracy in action. Or inaction. This is the Baghdad meeting hall where the newly-elected Iraqi National Assembly tried and failed today for the second time to choose a speaker. It's hoped the job will go to a Sunni in deference to their former dominance, despite their minority status population-wise. Sunnis largely boycotted the January elections and are thought to be fueling the insurgency.
Now, the difficulty in finding a speaker candidate has caused a bottleneck in the body's other duties, and today it prompted the acting speaker to pull the plug on TV coverage of the proceedings. At the Pentagon, however, as you may have seen live here on CNN last hour, Donald Rumsfeld is not concerned.
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, DEFENSE SECRETARY: Is there going to be a tug and a pull and a debate and an argument, and what about this and what about that? Sure, it will be, and it's going on right now. And it's tough stuff because there's a lot at stake. Those people are deeply concerned about the rights of minorities, and they have every right to be because they've lived in a society that did not respect the rights of minorities.
(END VIDEO CLIP)
NGUYEN: The assembly is expected to meet again on Sunday.
They're assessing the quake damage and looking for victims today in Indonesia. At least 330 people are known dead on the islands of Nias and Simeulue, which apparently took the brunt of yesterday's massive 8.5 magnitude earthquake. Indonesian officials fear the death toll could go even higher. It is the second major quake to hit the region in the last three months, and it triggered panic among many tsunami survivors.
O'BRIEN: Well, the quake was powerful and the epicenter was close to the one last December that triggered the deadly tsunami. No killer waves materialized this time. Scientists believe that's because the earth ruptured in a different direction.
Researchers are studying the underwater quake zone. One reveals some interesting finds to our Atika Shubert.
(BEGIN VIDEOTAPE)
ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): The massive earthquake struck early morning, triggering panic. Residents in Thailand, Indonesia and India fled into the streets in fear of another killer tsunami. But this time no sign of the giant waves that left more than 300,000 dead or missing last December. Scientists are wondering why.
(on camera): Part of the answer may be in this video recently taken by a remotely-controlled Japanese submersible called the Hyper Dolphin, more than 2,000 meters below the ocean's surface. (voice-over): These are the first pictures of the seabed around the epicenter of the original December earthquake. It shows a massive 1,300-kilometer crack in the ocean floor. That violent rupture is what created the killer waves. Wataru Azuma, who was on this underwater expedition, explains.
"The fault is segmented, and it stands on a precarious balance. Each piece sustaining the other," he explains. "When the balance is lost in a major earthquake, it destabilizes the entire area. That is why we warned that another earthquake was likely."
Even though the epicenter of this latest earthquake was very close to December's, it appears to have affected a much smaller area of seabed, creating only small waves. "We have to wait for exact data," he says. "Most likely, however, the tsunami waves were minimal because the epicenter of the earthquake is much more shallow. There was not as much of a gap on the ocean floor."
Professor Azuma warns aftershocks might continue. In the meantime, he continues to study the results of the underwater survey, hoping to find clues to predicting earthquakes and preventing disaster.
Atika Shubert, CNN, Tokyo.
(END VIDEOTAPE)
O'BRIEN: All right. Let's turn to the Terri Schiavo story, Pinellas Park, Florida.
That's Randall Terry, who crusades as a pro-lifer, and who has taken up the cause of Terri Schiavo here, insisting that that feeding tube not be removed. Of course, now, day 11, having had that tube removed, let's listen in.
MARY SCHINDLER, TERRI SCHIAVO'S MOTHER: First of all, I wanted to thank the Reverend Jesse Jackson for coming, giving us his support and supporting our family and praying with us. It was wonderful.
Second of all, I'd like to appeal to the Florida senators to please, please pass this new bill. Terri is still fighting. She's still alive. She's trying with all her might. She does not want to die. I'm begging them to please fight and give Terri a chance.
Thank you.
RANDALL TERRY, ACTIVIST: Hold on a second. For point of clarity, the bill that was defeated last week, if one of the members of the Senate who voted against it will ask for it to be brought up for a vote, we actually don't need new legislation. So this is a point of clarity because, as you know, Mary is not a lobbyist. She's a mom.
So the bill that was defeated last week, Reverend Jackson has been on the phone continually with members of the Senate pleading with them to change their vote. There are several members of the Senate who have indicated a willingness to do so.
So if we can get the votes, this bill will pass. So if Terri is going to fight this hard, this long, and in her struggle for life, we cannot give up. And that is what this is all about. If she is fighting, we're going to keep fighting.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Mr. Terry, a further point of clarity. The legislation, is it correct it would require a formal living will and also provide for guardianship switches? Is that...
TERRY: The guardianship language was not in the bill. And the issue of who has the authority to intervene, if there is a dispute, was the disputed thing.
Now, let me explain something. This bill can be amended later. If people have concerns -- there were people who were supportive of Terri but had legitimate concerns about the Bill. To them, we say this: save Terri.
Put the ladder up to the building. The building is on fire. We want to save this person.
Maybe there's a problem with the ladder truck and it needs to be repaired, but let's repair it next week. In the meantime, let's use what we have at our disposal to save Terri.
Do you have anything else you want to say?
FRANKEN: May I ask, Mrs. Schindler, if you could describe your daughter's condition, please?
TERRY: All right. Come on. Bobby -- bobby...
QUESTION: Mr. Terry, could you explain the sequence of events that you hoped would happen if that bill were to go through?
TERRY: The Senate and the House will both be in session tomorrow. If they take this up, and the votes are there, it could be signed into law by the governor, and the governor could immediately take her into custody and begin hydration once again.
She is still responding. And in a little while, you're going to hear from Bobby. He's going to update you. He was just in there.
But even as of last night, she still urinated, so her kidneys are still functioning. And as far as anyone can see, all of her vital organs are still functioning. Her pulse is still strong. And she is still conscious and responding to family members and to loved ones.
This literally is a miracle. It's happening before our eyes. And Jesse Jackson, Reverend Jackson's presence here, gave tremendous new momentum, tremendous new hope. Keep hope alive.
And the family is -- as you heard, Mary pleading to the members of the Senate, please take the bill up again. So we are looking for those three votes. That is what's going on right now.
QUESTION: Didn't Reverend Jackson -- didn't Reverend Jackson say that the people said they might consider if it was amended, but no one was inclined to take up the legislation that was voted on?
TERRY: That is still being discussed with them right now. As I said to the other gentleman, if you have a building on fire and you only have one ladder at your disposal to save the person, use the ladder that's there, and make repairs on the ladder after the job is done.
QUESTION: Randall, how would this address the retroactivity?
QUESTION: (UNINTELLIGIBLE)?
RANDALL: Well, if you bring three senators who were on the opposing side before, one of them can ask that the bill be voted on again. All right? It's...
QUESTION: Who's the one who voted against it? What's special about these three?
RANDALL: Well, Reverend Jackson is talking to all of the members of the Black Senate Caucus. We have other people that are calling other swing senators from both parties.
This is way beyond a partisan issue. This is not about partisan politics at this point. And it's about -- it's about responding to the cry of a dying woman who is fighting for her life, a woman who is starving, who is dehydrating, and yet still, against all odds, against all projections, clinging to life.
So I know that there are senators in Tallahassee who are deeply troubled in their conscience. This is an opportunity for them to respond to the plea of their own heart so that Terri does not expire because of their lack of action.
Any other questions?
FRANKEN: Yes. It would be -- it would be unusual, I think most people would agree, to see you appearing in the same forum on the same side as Reverend Jesse Jackson. May I ask you to comment on that?
TERRY: In my wildest dreams, I could never have pictured this. But I have to tell you, I was weeping inside there. It was one of the most profound experiences I've had in at least 10 years, maybe 15 years.
His pastoral counsel to the family was just moving and beautiful. His -- his -- the -- just the sense. I mean, him talking about Resurrection Sunday, Christ triumphing over death, following the fingerprints of god when it just looks like all hope is lost that god still comes through, it was very moving.
It was very spiritual. It was completely on point. And I just -- I could not, in my wildest dreams, have pictured this. Ma'am, you were next. Please, please.
QUESTION: What was the difference between the bill as far as the retroactivity issue that got shut down last time?
TERRY: I'm sorry?
QUESTION: What's the difference between this Bill and...
TERRY: Well, the other bill, the problem it was so focused on Terri that the Supreme Court ruled that it was unconstitutional.
O'BRIEN: Somewhere probably past the 11th hour, Randall Terry pleading there for the Florida legislature to do something, anything. The analogy he used is to build some sort of legislative ladder to try to save Terri Schiavo from what he describes as a burning building.
He preceded by Mary Schindler, mother of Terri Schiavo, who described her daughter as fighting, alive, and doesn't want to die. Of course, she has been in a persistent vegetative state now since 1990. And many would contest the fact that she has any feelings along those lines.
But that, of course, is right at the heart of this ongoing debate that we've seen play out. Now been 11 days since that feeding tube was disconnected in Pinellas Park, Florida.
We're watching it for you. Back with more in just a moment.
(COMMERCIAL BREAK)
NGUYEN: This just into CNN. The national director of programs for the Boy Scouts of America has been charged with receiving and distributing child pornography. For the latest on this, let's go live to Dallas and CNN's Ed Lavandera.
Ed, what do you know?
ED LAVANDERA, CNN CORRESPONDENT: Hi, Betty.
Well, this charge is coming from a U.S. attorney's office in Ft. Worth, Texas, where they say that they have charged Douglas Sovereign Smith Jr. (ph), who, as you mentioned, is the national director of programs with the Boy Scouts of America with one count of federal charge of knowing and receiving -- receiving and distributing child pornography. The charge also goes on to say that there were Internet computer images found on his computer, photographs of minors engaging in sexually explicit conduct.
The Boy Scouts of America say they are shocked and dismayed by this. But when they had learned of this investigation back in February, that Mr. Smith had volunteered to retire after 39 years with the Boy Scouts. They also say that as the national director of programs, that he had been working in an administrative position away from children. We have tried to contact Mr. Smith here this afternoon, but we have not been successful at this point. We've also placed calls to his attorney, and are awaiting a response from him as well.
Mr. Smith is expected to show up in federal court tomorrow morning. U.S. attorneys, officials here in the north Texas area say they expect him to plead guilty. That is their side. We have not heard that from Mr. Smith or his attorney so far at this point.
But that is the latest news from here in Dallas, that the national director of programs with the Boy Scouts of America is facing one federal charge of knowing -- of receiving and distributing child pornography -- Betty.
NGUYEN: And Douglas Smith is a man who's been with the organization for 39 years. We understand this investigation started in Germany. Do we know what tipped off investigators to Mr. Smith?
LAVANDERA: It's hard to say at this point. The charge that we've been able to get the information from just says that there is computer images and Internet images that they had been going through to kind of build their case. But beyond that at this point, we don't have much more information.
NGUYEN: All right. CNN's Ed Lavandera in Dallas for us. Thank you, Ed.
O'BRIEN: Well, doctors in Australia say a 10-year-old boy is smiling and wiggling his fingers today.
NGUYEN: Which is amazing after a freak accident cut off both his hands and his foot. We'll have the rest of his amazing story ahead on LIVE FROM.
O'BRIEN: And does ice cream taste better in round containers? These are questions to ponder. A food marketer takes you inside the tricks of the trade to get you to pick certain products in the grocery store. It's a plot, you know.
SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange. Coming up, thinking of switching your cell phone service? You'll want to hear our next report. I'll tell you which carrier rang up the most complaints next on LIVE FROM.
Stay tuned.
(COMMERCIAL BREAK)
O'BRIEN: So you make your list, you check it twice, and you still fall prey to cagey marketing ploys the at supermarket.
NGUYEN: Every time. How do you end up with a cart full of stuff you never planned to buy? Well, beside the fact that you had a coupon for it?
CNN's Heidi Collins on how advertisers play Pavlov and turn us into salivating packs of consuming canines.
(BEGIN VIDEOTAPE)
HEIDI COLLINS, CNN CORRESPONDENT (voice-over): America's typical supermarket, as many as 100,000 products clamoring for your attention. How do you choose? We went shopping with marketing expert Dahrel Riyea, CEO of Cheskin Consulting Firm, to get a firsthand look at the methods companies use to get you to buy what they're selling.
DAHREL RHEA, CHESKIN CONSULTING: One of the things manufacturers do, and designers do, is, they really sweat the details. Here on the Hormel logo, things like this sprig of parsley are engineered into that design to communicate freshness.
COLLINS: Come on, that little tiny bit of green, that sprig, is actually going to make me say, huh, this must be fresh?
RHEA: It will add to it.
COLLINS: While you may not realize it, packages send subtle messages and tap our emotions. The thinking is, the sunrise on Folgers coffee connects with the morning ritual of sipping that perfect cup. The glass jar of DelMonte fruit reminds us of grandma's kitchen. The film reel and colors on Orville Redenbacher's popcorn have that movie-theater feel.
And all of these visual cues don't just manipulate our first impressions.
RHEA: The packaging does influence the taste of the product as well. We do taste products with our eyes.
COLLINS: Look no further than the ice cream aisle.
RHEA: Packaging that's in a cylindrical container is perceived as tasting better, and being more premium than packaging in a rectangular package. It's the combination of the fact that we've got stripes. Those stripes kind of hearken back to an old-fashioned ice cream parlor. That we've got ice cream in a bowl. We've got flavor cues that are hitting us.
COLLINS: And hitting our wallets. The fancier presentation triggers our impulse to buy and pay more. In this store, $3.19 will get you 100 bags of straightforward Saladda Tea at regular price or just 20 bags of the more ornate Twinings.
(on camera): And when you actually do the comparison in here it's $3.19 basically a pound. Here it's nearly $16 a pound. That better be some darn good tea!
RHEA: Absolutely. You have some going up to $17 or $18 a pound.
COLLINS: And so is it really worth more? Is it really better tea?
RHEA: The people who would buy that tea would probably tell you that it is worth more, that they actually get more out of it, that it tastes better.
COLLINS (voice-over): In fact, it often comes down to trust. And who do you trust more than these familiar characters?
Caring or not, these personalities are carefully designed and tested for mass appeal. It's all about the right look to get us to make that split second decision to go from shelf to cart.
Rhea calls shopping speed dating with products.
RHEA: We're using our intuition to rapidly make those kind of assessments and those happen on an unconscious level.
UNIDENTIFIED MALE: Can I have it?
COLLINS: And packaging isn't just for grownups? A lot of prime store real estate is dedicated to little shoppers.
RHEA: Here we're looking at a fruit roll-up product that has tongue talk tattoos.
COLLINS: Oh, yummy.
RHEA: This is really toy packaging, not food packaging. We've got Barbie, "Shark Tales," "Shrek," really fun packaging that evokes an entertainment experience.
COLLINS: So big or small, old or young, are we all being manipulated?
MALCOLM GLADWELL, AUTHOR "BLINK": I think we're being manipulated all the time. And I think we have to know the extent to which our unconscious is being manipulated. Once you know about that, you do make different decisions and you make smarter decisions, and you're at least in charge.
COLLINS: Two-thirds of our grocery purchases are unplanned. What can you do to resist impulse buying? Well, make sure specials are special. Be wary of those end-of-aisle displays. Not everything there is on sale. Make a detailed shopping list complete with brand names and slow down, interrupt the impulse. And if all else fails...
RHEA: Just shop online. You won't have the sensory overload that we get in a grocery store like this.
COLLINS: Heidi Collins, CNN, New York.
(END VIDEOTAPE)
O'BRIEN: You know, I would add one thing.
NGUYEN: Yes?
O'BRIEN: Never go hungry.
NGUYEN: If you go hungry to the grocery store, you are going to buy so much more than you originally planned on doing.
O'BRIEN: Yes.
NGUYEN: Stick to the list. That's the key there.
O'BRIEN: And stick to the script, we're told, by the producers.
NGUYEN: Yes. Hurry up.
O'BRIEN: I'd love to go on about fruit roll-ups, but we can't.
NGUYEN: Not now, Miles.
O'BRIEN: All right.
NGUYEN: Tonight, Anderson Cooper continues a special weeklong series on the power of your instinct, and a topic that may put you on the spot. Find out if you instinctively believe one race is superior to the others. That's tonight on "ANDERSON COOPER 360" at 7:00 Eastern.
O'BRIEN: All right. That's a provocative one.
Cell phone providers rang up more complaints last year than the year before. So how does your carrier rank? That was my attempt at the "Can you hear me now" stuff?
NGUYEN: Can you hear me now?
O'BRIEN: Yes.
(STOCK MARKET REPORT)
