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Laguna Landslides; Beaten to the Punch

Aired June 03, 2005 - 13:32   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: In Southern California, a bittersweet day for those Laguna Beach residents allowed back onto their property. First time in days, some of them are returning to little more than just wreckage.
CNN's Chris Lawrence is there.

Chris, What can you tell us?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Kyra, right now, some of the family that suffered the worst damage still can't get near their homes this morning. They're telling us that, granted, the town had twice as much rain as normal, but they're saying some of the huge new homes that were being built on that hill helped to destabilize the soil.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): The effects of the Laguna Beach landslide are just starting to sink in.

UNIDENTIFIED FEMALE: Did you go up? Did you go up?

UNIDENTIFIED FEMALE: No, did you?

UNIDENTIFIED FEMALE: No.

LAWRENCE: Police have handed out permits to hundreds of residents, allowing them back in their homes.

UNIDENTIFIED FEMALE: I just got through talking to an insurance company.

UNIDENTIFIED FEMALE: Did you?

UNIDENTIFIED FEMALE: Yes. We don't get anything.

UNIDENTIFIED FEMALE: No.

LAWRENCE: Lori Herek house was damage so badly, police wouldn't let her near it.

LORI HEREK, LAGUNA BEACH RESIDENT: I don't want to see my home. I don't want to see the street that no longer exists. I don't want to see the beautiful canyon that I used to look at, out every morning and every evening, thinking how incredibly blessed I was to live here. I don't want to see it. What I want to see are my cats, and what I want to see are answers.

UNIDENTIFIED FEMALE: Herek and her neighbors have been complaining about new construction on the hill.

HEREK: It's unnatural, when you're pounding the earth day in and day out for a year, year and a half, two years.

LAWRENCE: Twenty-eight inches of rain this winter didn't help, but residents blame new construction and existing problems with the underground pipes for helping cause this damage.

UNIDENTIFIED MALE: How long have you lived in the home?

UNIDENTIFIED FEMALE: The cause is important to Lori's insurance agent. Companies won't cover landslides, but if there were other factors, like new construction, Herek might recover some damages.

HEREK: There was no stress fractures in my house. My tile wasn't cracked. The street wasn't cracked. You tell me why that hill slid.

LAWRENCE: On this piece of land, the answer to that question is worth millions.

(END VIDEOTAPE)

LAWRENCE: Yes, there's going to be a lot families with some real financial trouble if it turns out that the land that their house is built on is unsafe and worthless.

Right now, geologists say the most likely cause of that landslide is the 28 inches of rain that fell here earlier this winter -- Kyra.

PHILLIPS: Chris, let's just hope those insurance companies have a little bit of mercy.

Chris Lawrence, thank you so much -- Tony.

TONY HARRIS, CNN ANCHOR: Now more on this week's seismic political news. When Mark Felt went public as Deep Throat, no one was more surprised than "The Washington Post" journalists who kept his identity a secret for more than 30 years.

Last night, Bob Woodward and Carl Bernstein talked to Larry King about getting, well, scooped by their own source.

CNN's Kelly Wallace has more.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN CORRESPONDENT (voice-over): In their first live primetime interview since Deep Throat's identity was revealed, Bob Woodward and Carl Bernstein talked with Larry King about getting scooped.

LARRY KING, HOST: How did "Vanity Fair" beat you? BOB WOODWARD, "THE WASHINGTON POST": Well, they did some good reporting.

CARL BERNSTEIN, FMR. "WASHINGTON POST" REPORTER: There's a great lesson, journalistic lesson, in the way the story broke, in that we didn't get it. And that is that reporters often think that they're in control of a story. The story controls the reporter.

SARTAIN: Bernstein said he never actually met their legendary source, Mark Felt, and said Woodward met and talked with him fewer than a dozen times in two years during the Watergate scandal. Woodward told Larry King he hadn't spoken with Felt for a number of years.

WOODWARD: It was a number of years ago, I talked to him, and it was clear to me that -- and this was the reluctance we had that he has dementia, and his memory is often nonexistent on critical matters, and he is somebody 91 years old.

WALLACE: What about the critics who accuse felt of being disloyal, one calling him a snake?

BERNSTEIN: Sounds like what these people said about us 30 years ago, and the president of the United States said when they tried to make the conduct of the press the issue in Watergate.

WALLACE: Asked if they thought felt, who was number two at the FBI at the time, broke the law by sharing secrets with them...

WOODWARD: No, I don't think so. I think -- and again, and this is part of the additional story, that he was careful to give us guidance, he didn't give us direct information from FBI files or reports.

WALLACE: What about those who say Felt, passed over for the top job at the FBI, might have been seeking revenge?

BERNSTEIN: I think that's a much too simplistic way to interpret it. He obviously felt an obligation to the truth. He felt an obligation, I think, to the Constitution. He realized that there was a corrupt presidency, that the Constitution was being undermined.

WALLACE: And finally, how will history regard the man who helped uncover Watergate crimes, a scandal that brought down a president?

WOODWARD: He was a man conflicted, in turmoil, truly a man of the J. Edgar Hoover FBI, who saw all of these things going on. He's an important part, but you know, you don't know what history is going to say.

WALLACE (on camera): For three decades, they kept one of the biggest secrets in Washington. Now they can tell all, and plan to do that with a new book, which Woodward says could be on book shelves soon.

Kelly Wallace, CNN, New York. (END VIDEOTAPE)

PHILLIPS: News about your security now. In Uzbekistan, the U.S. and Israeli embassies order all nonessential personnel to leave, and the U.S. State Department is also extending that recommendation to any U.S. citizens in Uzbekistan. The warning come as U.S. officials note a recent increase in threats of terror attacks.

Similar warnings in Indonesia. The U.S. embassy there is warning Americans that terrorists may be planning to bomb hotels in the capital city of Jakarta. The Jakarta police echoing those warning, potential attacks on Western interests there.

New tensions in the Middle East. An Israeli security source announces that Syria test fired three Scud missiles towards its country last Friday. "New York Times" says that one of the missiles broke apart over Turkey, but no one has been reported injured. Israeli officials fear that Syria plans to fit missiles with chemical weapons.

HARRIS: Well, now to a more subtle, but still dangerous threat: industrial espionage.

CNN national security correspondent David Ensor has more on a new report that shows just how easily America gives up its secrets.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Foreign spies from nearly 100 different nations sought to steal sensitive U.S. technology last year, the U.S. intelligence community report says, and exacted a significant cost to this country. Much of it is industrial espionage, made easier, says the report's author, by modern technology.

DEAN CARVER, AUTHOR, U.S. INTEL REPORT AUTHOR: I think the big change is in how easy it is now to get at this information and how easy it is to store it, how easy it is to walk out with it.

ENSOR: At General Motors, because of security concerns, camera phones are not allowed. Top targets for economic spies are high tech sensors, electronics, aeronautics and information systems. The report does not name names, but officials say the thieves include citizens of Russia, India, Pakistan, Iran, Japan, France, Israel, and above all by far, China.

CARVER: We realize we can't compete with China head to head on labor costs. It's our innovation and our research and development that allows us to compete. And if that is stolen and is available to Chinese companies at little or no cost, then, of course, for our competitiveness that's a problem.

ENSOR: Arrests happen almost every week, officials say, including two Chinese-born Americans arrested at San Francisco Airport now awaiting trial. They were carrying, officials say, sensitive trade secrets from four different Silicon Valley high tech companies. At a recent conference, FBI officials reached out to others for help.

DAVID SZADY, FBI COUNTERINTELLIGENCE DIVISION: How are we going to stop all that? We're not. But what we need to do is get together with you, get together with the military, get together with the owners, get together with the developers and say, how can we put a counterintelligence umbrella around this before it is stolen so that when they ping on it, we know it?

ENSOR (on camera): The report says economic spies are sometimes able to obtain commercially valuable data by making e-mail or fax requests of naive American companies. Losses range from national security secrets to valuable American jobs.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

HARRIS: And CNN is committed to providing the most reliable coverage of news that affects your security.

Stay tuned to CNN for the latest information day and night.

PHILLIPS: The social life of America's teens is in the middle of a technological revolution.

Coming up in the next hour of LIVE FROM, why cell phones, the Internet and text messaging are becoming essential for kids who want to stay socially connected.

Plus this...

(SINGING)

PHILLIPS: Talking about this movie all these years later, it's amazing how many things we still remember.

It's been more than 20 years since "Stripes" marched into theaters and American pop culture. Now it's back better than ever. Up next, we're going to talk with two of the movie's stars about what's new with this latest DVD edition.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BILL MURRAY, ACTOR: One, two...

(SINGING)

UNIDENTIFIED MALE: Where the hell have you been, soldier?

MURRAY: Training, sir.

UNIDENTIFIED MALE: What kind of training, son?

MURRAY: Army training, sir. (END VIDEO CLIP)

HARRIS: Did we do the "that's the fact, jack," line? Did we get that in there anywhere yet?

PHILLIPS: Where's the spatula?

(LAUGHTER)

HARRIS: That's coming. Kyra, that is coming. Your wish is my command.

(LAUGHTER)

I am trying to imagine for a moment what would happen if we sent these guys over to -- perish the thought.

Of course, it's only a movie and a funny one at that, where a lot of actors like the late, great John Candy earned their comedy stripes. Can you believe "Stripes" was released way back in 1981? To the delight of fans, it's now out on DVD.

We've enlisted the help of a couple of cast members to help refresh your memories. Judge Reinhold and P.J. Soles joining us from our L.A. bureau.

Good to see you both.

JUDGE REINHOLD, ACTOR: Hi.

P.J. SOLES, ACTRESS: Hi.

You make us sound so old.

(LAUGHTER)

HARRIS: When you think about 1981 like that, it does sound...

SOLES: Way back in the '80s.

HARRIS: Way back then. I kind of sold it that way, didn't I? Sorry about that.

Well, I've got to tell you -- Judge, when is the last time you actually sat down and watched the movie?

REINHOLD: A few nights ago.

HARRIS: Really?

REINHOLD: Yes. Because we -- they've redone the sound and it's quite an improvement. Actually, we were just saying that it's better than it ever was.

HARRIS: Well, did it hold up for you?

REINHOLD: Pardon?

HARRIS: Did it hold up for you?

REINHOLD: Oh, very much so. Yes.

HARRIS: P.J., what's it been like for you? When was the last time you sat down to watch it?

SOLES: I think same as Judge, a couple of nights ago, because we've got the new...

HARRIS: There you go.

SOLES: ... extended version here.

HARRIS: Work it, work it. Right.

SOLES: Well, no, there's 18 minutes of deleted scenes that were not added, not because they weren't great, but because it just made the movie so much longer.

HARRIS: Right.

SOLES: It was really, really fun to watch it, though.

HARRIS: OK. In 1981, as we've mentioned a couple of times -- sorry about that -- but does it hold up, P.J., does the comedy hold up for you?

SOLES: It's incredible. I mean, it's so funny. You could put this movie out today and I think there would be the same response as when it was released in 1981.

HARRIS: Yes. And, Judge?

SOLES: You know, Bill Murray just goes on and on, and when you look back and to think that this was his second movie, it's unbelievable.

HARRIS: Surprised that he's gone on to become the star that he's become?

REINHOLD: No.

HARRIS: No?

REINHOLD: No. We are not surprised.

SOLES: No, not surprised.

REINHOLD: No.

HARRIS: Well, Judge, I have to ask you -- your character is named Elmo. Tell us about this guy. He was trying to pull together some clandestine drug deals as I remember the film.

What do you remember about him?

REINHOLD: Well, originally, the movie was created for Cheech and Chong.

HARRIS: Oh.

REINHOLD: And they couldn't negotiate an equitable deal.

HARRIS: OK.

REINHOLD: So I kind of got the -- some of the Cheech and Chong jokes. That's the purpose my character provided.

(LAUGHTER)

HARRIS: That was the purpose of your character, to pick up that material. I got you. OK.

And, P.J.?

SOLES: And what was the purpose of my character?

(LAUGHTER)

HARRIS: Well, we are about to get to that.

The purpose of your character, for a lot of folks, was the tour of the general's house. You remember that scene?

SOLES: Especially the kitchen (inaudible) get to those utensils.

(LAUGHTER)

HARRIS: Well, hang on just a second here. We're going to show a bit of a scene of you -- oh, here we go.

(BEGIN VIDEOTAPE)

MURRAY: I'm going to give you the Aunt Jemima treatment.

SOLES: Oh, I certainly haven't had that.

MURRAY: First, you get up on the grill.

(CROSSTALK)

(LAUGHTER)

MURRAY: Keep hopping. Keep hopping, honey. There you go. Little bit hoppy. Little bit hoppy. Little bit...

SOLES: I'm not enjoying this. Now quit it. Quit it.

MURRAY: Maybe you need this.

(END VIDEO CLIP) HARRIS: Now, P.J., whoa, whoa. The ice cream scoop -- hello.

P.J., you don't write that. You just go, don't you?

SOLES: It was so funny.

Bill opened the refrigerator and we went from the carrot. I mean, it was -- he just kept pulling things out and it was a natural reaction. What are you going to do with that and what are you going to do with that?

HARRIS: Right, right.

SOLES: When he put me on the stove, I mean, it was just unbelievable.

HARRIS: So did you...

SOLES: We were very lucky that Bill has a quick mind like that and he's a little sick.

(LAUGHTER)

HARRIS: Well, at some point, he got you in a little trouble -- sure, sure.

Well, did you like your character? Did you have fun on the set making that movie?

SOLES: Oh, absolutely.

We were in Fort Knox, Kentucky. We had the best time. Warren Oates was there. John Candy was making pasta dinner at midnight. We just -- we really had a blast -- Sean Young.

It's nice to go back and look at it. And it seems like yesterday, but I'm glad that they re-released it and they have, you know, stereo now. You can listen to the soundtrack and they have all those extra scenes, because the kids of today, they love that deleted scenes menu.

HARRIS: Right.

SOLES: What else do we watch?

How did they make the movie?

What are they going to talk about?

So, there is all the interviews and everything. So, it's really a prize.

HARRIS: And, Judge, you had been in just a couple of movies before "Stripes."

Was this an important film for you? REINHOLD: Yes, it really was like basic training in comedy for me.

HARRIS: Right.

REINHOLD: Because I got to watch these guys, who went on to be, you know, comedy legends, and I learned about audacity, I learned how to really take risks, and I was really kind of a flea on the back of this movie.

But I -- the reason it's important to me was, is I learned so much from Candy, from Bill, and from P.J.

HARRIS: Yes.

All right, so...

SOLES: And he was able to do that scene that you're watching now, which always amazed me that these guys got it together.

How long did it take you to do that, Judge?

REINHOLD: We ruined -- the ceiling of every hotel room has big dents in it because the rifles kept...

(LAUGHTER)

(CROSSTALK)

REINHOLD: I could hear I think Larroquette -- no, it wasn't Larroquette -- I -- John Diehl was above me and I could hear boom, boom, on the floor.

(LAUGHTER)

HARRIS: So we see...

(CROSSTALK)

Now, those are the extras -- you see, Kyra, those are the extra moments that you wanted.

PHILLIPS: That's the bonus. That's the bonus.

HARRIS: Hey, that's beautiful.

It is good to see you both.

SOLES: You don't want to know what happened in my hotel rooms.

HARRIS: Well, I actually do.

(LAUGHTER)

PHILLIPS: Hello.

HARRIS: Hello.

We've got ice cream scoops, we've got spatulas, and more to come.

Good to see you both.

SOLES: So we had to practice.

REINHOLD: Thank you.

HARRIS: Pamela Jane...

SOLES: Yes.

HARRIS: It's been a while since anyone has called you that.

It's good to see you.

PHILLIPS: Judge has got the salute going.

HARRIS: And, Judge, good to see you, captain my captain.

REINHOLD: Thank you, sir.

HARRIS: Take care, both of you.

(LAUGHTER)

It's a little wacky, a little wacky.

PHILLIPS: They're still crazy, you've got to love it.

HARRIS: Yes.

All right, how do you spell winner? Try A-N-U-R-A-G.

Up next, hear from the 13-year-old California boy who has been crowned the national spelling champion.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANURAG KASHYAP, SPELLING BEE WINNER: A-P-P-O-G-G-I-A-T-U-R-A.

(END VIDEO CLIP)

PHILLIPS: I'd be pretty excited and shocked too.

Just in case you've forgotten, appoggiatura is a musical term for an embellishing note. We'll just leave it at that.

Now because we want to offer kudos to Anurag Kashyap, it was the California 8th-grader's second trip to the O.K. Corral of spelling. Last time he was bee-stung, but this time he emerged victorious.

(BEGIN VIDEO CLIP) KASHYAP: I was just completely filled with bliss and like amazement. All this hard work I put into it and it finally paid off and I was just so happy.

(END VIDEO CLIP)

HARRIS: Filled with bliss -- man, kids.

Was "Shrek 2" a monster hit on DVD or just a fairy tale?

Some Dreamworks shareholders want to know.

Kathleen Hays has the story live from the New York Stock Exchange --Kathleen?

(MARKET UPDATE)

PHILLIPS: Well, coming up in the second hour of LIVE FROM, teens and technology -- why cell phones and the Internet are becoming necessities for kids who want to stay in the social loop.

Second hour of LIVE FROM begins right after this.

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 June 3, 2005 - 13:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: In Southern California, a bittersweet day for those Laguna Beach residents allowed back onto their property. First time in days, some of them are returning to little more than just wreckage.
CNN's Chris Lawrence is there.

Chris, What can you tell us?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Kyra, right now, some of the family that suffered the worst damage still can't get near their homes this morning. They're telling us that, granted, the town had twice as much rain as normal, but they're saying some of the huge new homes that were being built on that hill helped to destabilize the soil.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): The effects of the Laguna Beach landslide are just starting to sink in.

UNIDENTIFIED FEMALE: Did you go up? Did you go up?

UNIDENTIFIED FEMALE: No, did you?

UNIDENTIFIED FEMALE: No.

LAWRENCE: Police have handed out permits to hundreds of residents, allowing them back in their homes.

UNIDENTIFIED FEMALE: I just got through talking to an insurance company.

UNIDENTIFIED FEMALE: Did you?

UNIDENTIFIED FEMALE: Yes. We don't get anything.

UNIDENTIFIED FEMALE: No.

LAWRENCE: Lori Herek house was damage so badly, police wouldn't let her near it.

LORI HEREK, LAGUNA BEACH RESIDENT: I don't want to see my home. I don't want to see the street that no longer exists. I don't want to see the beautiful canyon that I used to look at, out every morning and every evening, thinking how incredibly blessed I was to live here. I don't want to see it. What I want to see are my cats, and what I want to see are answers.

UNIDENTIFIED FEMALE: Herek and her neighbors have been complaining about new construction on the hill.

HEREK: It's unnatural, when you're pounding the earth day in and day out for a year, year and a half, two years.

LAWRENCE: Twenty-eight inches of rain this winter didn't help, but residents blame new construction and existing problems with the underground pipes for helping cause this damage.

UNIDENTIFIED MALE: How long have you lived in the home?

UNIDENTIFIED FEMALE: The cause is important to Lori's insurance agent. Companies won't cover landslides, but if there were other factors, like new construction, Herek might recover some damages.

HEREK: There was no stress fractures in my house. My tile wasn't cracked. The street wasn't cracked. You tell me why that hill slid.

LAWRENCE: On this piece of land, the answer to that question is worth millions.

(END VIDEOTAPE)

LAWRENCE: Yes, there's going to be a lot families with some real financial trouble if it turns out that the land that their house is built on is unsafe and worthless.

Right now, geologists say the most likely cause of that landslide is the 28 inches of rain that fell here earlier this winter -- Kyra.

PHILLIPS: Chris, let's just hope those insurance companies have a little bit of mercy.

Chris Lawrence, thank you so much -- Tony.

TONY HARRIS, CNN ANCHOR: Now more on this week's seismic political news. When Mark Felt went public as Deep Throat, no one was more surprised than "The Washington Post" journalists who kept his identity a secret for more than 30 years.

Last night, Bob Woodward and Carl Bernstein talked to Larry King about getting, well, scooped by their own source.

CNN's Kelly Wallace has more.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN CORRESPONDENT (voice-over): In their first live primetime interview since Deep Throat's identity was revealed, Bob Woodward and Carl Bernstein talked with Larry King about getting scooped.

LARRY KING, HOST: How did "Vanity Fair" beat you? BOB WOODWARD, "THE WASHINGTON POST": Well, they did some good reporting.

CARL BERNSTEIN, FMR. "WASHINGTON POST" REPORTER: There's a great lesson, journalistic lesson, in the way the story broke, in that we didn't get it. And that is that reporters often think that they're in control of a story. The story controls the reporter.

SARTAIN: Bernstein said he never actually met their legendary source, Mark Felt, and said Woodward met and talked with him fewer than a dozen times in two years during the Watergate scandal. Woodward told Larry King he hadn't spoken with Felt for a number of years.

WOODWARD: It was a number of years ago, I talked to him, and it was clear to me that -- and this was the reluctance we had that he has dementia, and his memory is often nonexistent on critical matters, and he is somebody 91 years old.

WALLACE: What about the critics who accuse felt of being disloyal, one calling him a snake?

BERNSTEIN: Sounds like what these people said about us 30 years ago, and the president of the United States said when they tried to make the conduct of the press the issue in Watergate.

WALLACE: Asked if they thought felt, who was number two at the FBI at the time, broke the law by sharing secrets with them...

WOODWARD: No, I don't think so. I think -- and again, and this is part of the additional story, that he was careful to give us guidance, he didn't give us direct information from FBI files or reports.

WALLACE: What about those who say Felt, passed over for the top job at the FBI, might have been seeking revenge?

BERNSTEIN: I think that's a much too simplistic way to interpret it. He obviously felt an obligation to the truth. He felt an obligation, I think, to the Constitution. He realized that there was a corrupt presidency, that the Constitution was being undermined.

WALLACE: And finally, how will history regard the man who helped uncover Watergate crimes, a scandal that brought down a president?

WOODWARD: He was a man conflicted, in turmoil, truly a man of the J. Edgar Hoover FBI, who saw all of these things going on. He's an important part, but you know, you don't know what history is going to say.

WALLACE (on camera): For three decades, they kept one of the biggest secrets in Washington. Now they can tell all, and plan to do that with a new book, which Woodward says could be on book shelves soon.

Kelly Wallace, CNN, New York. (END VIDEOTAPE)

PHILLIPS: News about your security now. In Uzbekistan, the U.S. and Israeli embassies order all nonessential personnel to leave, and the U.S. State Department is also extending that recommendation to any U.S. citizens in Uzbekistan. The warning come as U.S. officials note a recent increase in threats of terror attacks.

Similar warnings in Indonesia. The U.S. embassy there is warning Americans that terrorists may be planning to bomb hotels in the capital city of Jakarta. The Jakarta police echoing those warning, potential attacks on Western interests there.

New tensions in the Middle East. An Israeli security source announces that Syria test fired three Scud missiles towards its country last Friday. "New York Times" says that one of the missiles broke apart over Turkey, but no one has been reported injured. Israeli officials fear that Syria plans to fit missiles with chemical weapons.

HARRIS: Well, now to a more subtle, but still dangerous threat: industrial espionage.

CNN national security correspondent David Ensor has more on a new report that shows just how easily America gives up its secrets.

(BEGIN VIDEOTAPE)

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT (voice-over): Foreign spies from nearly 100 different nations sought to steal sensitive U.S. technology last year, the U.S. intelligence community report says, and exacted a significant cost to this country. Much of it is industrial espionage, made easier, says the report's author, by modern technology.

DEAN CARVER, AUTHOR, U.S. INTEL REPORT AUTHOR: I think the big change is in how easy it is now to get at this information and how easy it is to store it, how easy it is to walk out with it.

ENSOR: At General Motors, because of security concerns, camera phones are not allowed. Top targets for economic spies are high tech sensors, electronics, aeronautics and information systems. The report does not name names, but officials say the thieves include citizens of Russia, India, Pakistan, Iran, Japan, France, Israel, and above all by far, China.

CARVER: We realize we can't compete with China head to head on labor costs. It's our innovation and our research and development that allows us to compete. And if that is stolen and is available to Chinese companies at little or no cost, then, of course, for our competitiveness that's a problem.

ENSOR: Arrests happen almost every week, officials say, including two Chinese-born Americans arrested at San Francisco Airport now awaiting trial. They were carrying, officials say, sensitive trade secrets from four different Silicon Valley high tech companies. At a recent conference, FBI officials reached out to others for help.

DAVID SZADY, FBI COUNTERINTELLIGENCE DIVISION: How are we going to stop all that? We're not. But what we need to do is get together with you, get together with the military, get together with the owners, get together with the developers and say, how can we put a counterintelligence umbrella around this before it is stolen so that when they ping on it, we know it?

ENSOR (on camera): The report says economic spies are sometimes able to obtain commercially valuable data by making e-mail or fax requests of naive American companies. Losses range from national security secrets to valuable American jobs.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

HARRIS: And CNN is committed to providing the most reliable coverage of news that affects your security.

Stay tuned to CNN for the latest information day and night.

PHILLIPS: The social life of America's teens is in the middle of a technological revolution.

Coming up in the next hour of LIVE FROM, why cell phones, the Internet and text messaging are becoming essential for kids who want to stay socially connected.

Plus this...

(SINGING)

PHILLIPS: Talking about this movie all these years later, it's amazing how many things we still remember.

It's been more than 20 years since "Stripes" marched into theaters and American pop culture. Now it's back better than ever. Up next, we're going to talk with two of the movie's stars about what's new with this latest DVD edition.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BILL MURRAY, ACTOR: One, two...

(SINGING)

UNIDENTIFIED MALE: Where the hell have you been, soldier?

MURRAY: Training, sir.

UNIDENTIFIED MALE: What kind of training, son?

MURRAY: Army training, sir. (END VIDEO CLIP)

HARRIS: Did we do the "that's the fact, jack," line? Did we get that in there anywhere yet?

PHILLIPS: Where's the spatula?

(LAUGHTER)

HARRIS: That's coming. Kyra, that is coming. Your wish is my command.

(LAUGHTER)

I am trying to imagine for a moment what would happen if we sent these guys over to -- perish the thought.

Of course, it's only a movie and a funny one at that, where a lot of actors like the late, great John Candy earned their comedy stripes. Can you believe "Stripes" was released way back in 1981? To the delight of fans, it's now out on DVD.

We've enlisted the help of a couple of cast members to help refresh your memories. Judge Reinhold and P.J. Soles joining us from our L.A. bureau.

Good to see you both.

JUDGE REINHOLD, ACTOR: Hi.

P.J. SOLES, ACTRESS: Hi.

You make us sound so old.

(LAUGHTER)

HARRIS: When you think about 1981 like that, it does sound...

SOLES: Way back in the '80s.

HARRIS: Way back then. I kind of sold it that way, didn't I? Sorry about that.

Well, I've got to tell you -- Judge, when is the last time you actually sat down and watched the movie?

REINHOLD: A few nights ago.

HARRIS: Really?

REINHOLD: Yes. Because we -- they've redone the sound and it's quite an improvement. Actually, we were just saying that it's better than it ever was.

HARRIS: Well, did it hold up for you?

REINHOLD: Pardon?

HARRIS: Did it hold up for you?

REINHOLD: Oh, very much so. Yes.

HARRIS: P.J., what's it been like for you? When was the last time you sat down to watch it?

SOLES: I think same as Judge, a couple of nights ago, because we've got the new...

HARRIS: There you go.

SOLES: ... extended version here.

HARRIS: Work it, work it. Right.

SOLES: Well, no, there's 18 minutes of deleted scenes that were not added, not because they weren't great, but because it just made the movie so much longer.

HARRIS: Right.

SOLES: It was really, really fun to watch it, though.

HARRIS: OK. In 1981, as we've mentioned a couple of times -- sorry about that -- but does it hold up, P.J., does the comedy hold up for you?

SOLES: It's incredible. I mean, it's so funny. You could put this movie out today and I think there would be the same response as when it was released in 1981.

HARRIS: Yes. And, Judge?

SOLES: You know, Bill Murray just goes on and on, and when you look back and to think that this was his second movie, it's unbelievable.

HARRIS: Surprised that he's gone on to become the star that he's become?

REINHOLD: No.

HARRIS: No?

REINHOLD: No. We are not surprised.

SOLES: No, not surprised.

REINHOLD: No.

HARRIS: Well, Judge, I have to ask you -- your character is named Elmo. Tell us about this guy. He was trying to pull together some clandestine drug deals as I remember the film.

What do you remember about him?

REINHOLD: Well, originally, the movie was created for Cheech and Chong.

HARRIS: Oh.

REINHOLD: And they couldn't negotiate an equitable deal.

HARRIS: OK.

REINHOLD: So I kind of got the -- some of the Cheech and Chong jokes. That's the purpose my character provided.

(LAUGHTER)

HARRIS: That was the purpose of your character, to pick up that material. I got you. OK.

And, P.J.?

SOLES: And what was the purpose of my character?

(LAUGHTER)

HARRIS: Well, we are about to get to that.

The purpose of your character, for a lot of folks, was the tour of the general's house. You remember that scene?

SOLES: Especially the kitchen (inaudible) get to those utensils.

(LAUGHTER)

HARRIS: Well, hang on just a second here. We're going to show a bit of a scene of you -- oh, here we go.

(BEGIN VIDEOTAPE)

MURRAY: I'm going to give you the Aunt Jemima treatment.

SOLES: Oh, I certainly haven't had that.

MURRAY: First, you get up on the grill.

(CROSSTALK)

(LAUGHTER)

MURRAY: Keep hopping. Keep hopping, honey. There you go. Little bit hoppy. Little bit hoppy. Little bit...

SOLES: I'm not enjoying this. Now quit it. Quit it.

MURRAY: Maybe you need this.

(END VIDEO CLIP) HARRIS: Now, P.J., whoa, whoa. The ice cream scoop -- hello.

P.J., you don't write that. You just go, don't you?

SOLES: It was so funny.

Bill opened the refrigerator and we went from the carrot. I mean, it was -- he just kept pulling things out and it was a natural reaction. What are you going to do with that and what are you going to do with that?

HARRIS: Right, right.

SOLES: When he put me on the stove, I mean, it was just unbelievable.

HARRIS: So did you...

SOLES: We were very lucky that Bill has a quick mind like that and he's a little sick.

(LAUGHTER)

HARRIS: Well, at some point, he got you in a little trouble -- sure, sure.

Well, did you like your character? Did you have fun on the set making that movie?

SOLES: Oh, absolutely.

We were in Fort Knox, Kentucky. We had the best time. Warren Oates was there. John Candy was making pasta dinner at midnight. We just -- we really had a blast -- Sean Young.

It's nice to go back and look at it. And it seems like yesterday, but I'm glad that they re-released it and they have, you know, stereo now. You can listen to the soundtrack and they have all those extra scenes, because the kids of today, they love that deleted scenes menu.

HARRIS: Right.

SOLES: What else do we watch?

How did they make the movie?

What are they going to talk about?

So, there is all the interviews and everything. So, it's really a prize.

HARRIS: And, Judge, you had been in just a couple of movies before "Stripes."

Was this an important film for you? REINHOLD: Yes, it really was like basic training in comedy for me.

HARRIS: Right.

REINHOLD: Because I got to watch these guys, who went on to be, you know, comedy legends, and I learned about audacity, I learned how to really take risks, and I was really kind of a flea on the back of this movie.

But I -- the reason it's important to me was, is I learned so much from Candy, from Bill, and from P.J.

HARRIS: Yes.

All right, so...

SOLES: And he was able to do that scene that you're watching now, which always amazed me that these guys got it together.

How long did it take you to do that, Judge?

REINHOLD: We ruined -- the ceiling of every hotel room has big dents in it because the rifles kept...

(LAUGHTER)

(CROSSTALK)

REINHOLD: I could hear I think Larroquette -- no, it wasn't Larroquette -- I -- John Diehl was above me and I could hear boom, boom, on the floor.

(LAUGHTER)

HARRIS: So we see...

(CROSSTALK)

Now, those are the extras -- you see, Kyra, those are the extra moments that you wanted.

PHILLIPS: That's the bonus. That's the bonus.

HARRIS: Hey, that's beautiful.

It is good to see you both.

SOLES: You don't want to know what happened in my hotel rooms.

HARRIS: Well, I actually do.

(LAUGHTER)

PHILLIPS: Hello.

HARRIS: Hello.

We've got ice cream scoops, we've got spatulas, and more to come.

Good to see you both.

SOLES: So we had to practice.

REINHOLD: Thank you.

HARRIS: Pamela Jane...

SOLES: Yes.

HARRIS: It's been a while since anyone has called you that.

It's good to see you.

PHILLIPS: Judge has got the salute going.

HARRIS: And, Judge, good to see you, captain my captain.

REINHOLD: Thank you, sir.

HARRIS: Take care, both of you.

(LAUGHTER)

It's a little wacky, a little wacky.

PHILLIPS: They're still crazy, you've got to love it.

HARRIS: Yes.

All right, how do you spell winner? Try A-N-U-R-A-G.

Up next, hear from the 13-year-old California boy who has been crowned the national spelling champion.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANURAG KASHYAP, SPELLING BEE WINNER: A-P-P-O-G-G-I-A-T-U-R-A.

(END VIDEO CLIP)

PHILLIPS: I'd be pretty excited and shocked too.

Just in case you've forgotten, appoggiatura is a musical term for an embellishing note. We'll just leave it at that.

Now because we want to offer kudos to Anurag Kashyap, it was the California 8th-grader's second trip to the O.K. Corral of spelling. Last time he was bee-stung, but this time he emerged victorious.

(BEGIN VIDEO CLIP) KASHYAP: I was just completely filled with bliss and like amazement. All this hard work I put into it and it finally paid off and I was just so happy.

(END VIDEO CLIP)

HARRIS: Filled with bliss -- man, kids.

Was "Shrek 2" a monster hit on DVD or just a fairy tale?

Some Dreamworks shareholders want to know.

Kathleen Hays has the story live from the New York Stock Exchange --Kathleen?

(MARKET UPDATE)

PHILLIPS: Well, coming up in the second hour of LIVE FROM, teens and technology -- why cell phones and the Internet are becoming necessities for kids who want to stay in the social loop.

Second hour of LIVE FROM begins right after this.

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