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Arrest Made in London Bombings Investigation; White House Under Fire Over Rove Leak Allegations; Death of Baby Girl in Police Standoff Under Investigation

Aired July 12, 2005 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CO-HOST: New developments in the British terror bombing investigation. Police raid homes and make an arrest. We're live from the center of the search.
Is the president's top political adviser the source of a leak about a CIA agent? We're monitoring the White House briefing right now.

Driven to distraction, what you need to know about cell phone headsets before you answer that next call.

From the CNN Center in Atlanta, I'm Kyra Phillips. CNN's LIVE FROM starts right now.

London, Lutton and Leeds, three British cities on the forefront of the search for the bombers, the plotters, the facilitators of last week's attacks on three London subway trains and a bus.

CNN's Nic Robertson was in the northern city of Leeds for the first series of raids said to be directly connected to London's worst day of violence since World War II.

Nic, what do you know?

NIC ROBERTSON, CNN CORRESPONDENT: Well, Kyra, those raids began at about 6:30 in the morning. Police now confirm that they've raided six different premises here. They say they have arrested one man. He will be taken back to London for questioning.

They also can now say that one of the bombers died. They believe that the three other bombers may also have died. They say three of the bombers, three of the four bombers, came from here in West Yorkshire, that they traveled to London, that they were spotted, all four bombers going through King's Cross Station, caught on closed circuit television cameras, security cameras, about 20 minutes before the bombs went off.

Police are also saying that through those raids in Leeds they have discovered a suspicious material, a material that could be cause for concern for the public. They're not saying what that is. They did seal off an area, evacuate some 500 people, used a controlled explosion to get into a building. It may very well be -- they're not saying -- it may very well be that that substance is, in fact, an explosive substance. But from what we understand from the police today, the breakthrough that led to the -- led to the arrest here in Leeds today may very well have come from this street here right behind me. They say just over an hour after the bomb explosions went off, a family here in Leeds called a telephone hot line set up by the police to help try to find out who the victims might be, for families and loved ones to call in to establish their loved ones were safe. They say a call came from a family in Leeds barely an hour after the bombs.

The local police chief here in West Yorkshire has said that actions started, as a result of that phone call, those actions bringing anti-terrorist police to this street, to six -- to five other locations in Leeds in the early hours of this morning, Kyra.

PHILLIPS: What can you tell us about the neighborhood, Nic, and have you heard anybody even mention al Qaeda?

ROBERTSON: Nobody here mentioning al Qaeda. What we have heard from local counselors is that this area, this area in Leeds, this street has quite a high number of people, families, perhaps would trace their families back to either Pakistan or the Kashmir region.

PHILLIPS: OK.

ROBERTSON: Leeds itself has a relatively small Muslim population, perhaps three percent. West Yorkshire, the Muslim population here, about seven percent.

But what we are hearing from the police and the police chief in West Yorkshire, who held a press conference a little over -- a little under an hour ago, was stressing the importance of keeping good community relations. He said that there were very low tensions within the community at this time. He said that it was important that people didn't react angrily to the situation.

He said he would have a lot of additional police out on the street and that if there were any indications of any trouble breaking out, anything of a serious nature, threatening law and order, he said the police would respond quickly.

So while the family -- while one of the families involved here may have a Pakistani heritage, that according to one of the neighbors here, not so far according to the police, at least. While that may be the case, the police stressing the importance of maintaining good community relations, Kyra.

PHILLIPS: All right. Nic Robertson, thank you so much. We'll hear -- definitely, we'll hear from you more in the next hour.

Well, no go no longer. The commander of U.S. forces in Europe today tore up a London travel ban imposed in the wake of last week's bombings, a ban that reportedly had angered some London officials. More than 10,000 G.I.'s in the U.K. are being urged to be vigilant while continuing with their normal routines.

We're also following an explosion barely an hour ago at a shopping mall in Israel. Paramedics say that two people were killed in Netanya, just north of Tel Aviv. That's the scene of the so-called Passover bombing in which 29 died in 2002. Today's attack is believed to be the work of a suicide bomber, and more than two dozen bystanders are said to be hurt. We're going to bring you all the developments as we get them.

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.

So what's in a name? Big trouble, or at least big controversy, if the name belongs to a CIA official whose husband was a critic of the war in Iraq. And the name itself apparently doesn't even have to be uttered.

Such is the firestorm surrounding the deputy White House chief of staff, long-time advisor, consultant, guru to President Bush, Karl Rove. Rove evidently was the confidential source behind a "TIME" magazine report that almost sent the reporter to jail. Now he, Rove, is the story, and the White House isn't commenting.

Let's go straight to the White House now for the briefing, and listen in.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: ... that question -- and if I were to start commenting on news reports or things related to the investigation, I'm getting into prejudging the outcome of that investigation. I don't want to do that from this. Let's let the investigation take place, and let's let the investigators bring all the facts together and draw the conclusions that they draw. And then we will know the facts at that point.

UNIDENTIFIED MALE: Scott, there's a difference between what's legal and what's right. Is what Karl Rove did right?

MCCLELLAN: Well, I mean you can state the obvious. I understand and appreciate that, and I appreciate you all. I know you all want to get to the bottom of this. I want to get to the bottom of this. The president has said no one wants to get to the bottom of it more than he does. We want to see it come to a successful conclusion.

The best way to help the investigation come to a successful conclusion is not -- is for me not to get into discussing it from this podium. I don't think that helps -- wait. I don't think that -- I don't think that helps advance the investigation.

UNIDENTIFIED MALE: You say you won't discuss it but the Republican National Committee and others working, obviously, on behalf of the White House, they put out this Wilson, Rove research and talking points, distributed to Republican surrogates, which include things like Karl Rove discouraged a reporter from writing a false story.

And then other Republican surrogates are getting information such as Cooper, the "TIME" reporter, called Rove on the pretense of discussing welfare reform. Bill Kristol on FOX News, a friendly news channel to you, said that the conversation lasted for two minutes and it was just at the end that Rove discussed this. So someone is providing this information. Are you behind the scenes directing a response to this story?

MCCLELLAN: You can talk to the RNC about what they put out. I'll let them speak to that.

What I know is that the president directed the White House to cooperate fully with the investigation, and as part of cooperating fully with that investigation, that means supporting the efforts by the investigators to come to a successful conclusion. And that means not commenting on it from this podium. And, no, I understand your question.

UNIDENTIFIED MALE: ... and other Republican surrogates are essentially saying that the conversation lasted for two minutes and that the subject was ostensibly welfare reform. They're getting that information from here, from Karl Rove.

MCCLELLAN: And, again, you're asking questions that are related to news reports about an ongoing, continuing investigation, and you've had my response on that.

UNIDENTIFIED MALE: At the very least, though, Scott, could you say whether or not you stand by your statement of September 29, 2003, that is simply not true that Karl Rove disclosed the identity of a CIA operative?

MCCLELLAN: John?

UNIDENTIFIED MALE: Can you stand by that statement?

MCCLELLAN: John, I look forward to talking about this at some point, but it's not the appropriate time to talk about those questions while the investigation is continuing.

UNIDENTIFIED MALE: Do we take that as a yes or no? No, Scott, this was a statement you made on the record 21 months ago. You very confidently asserted to us and to the American people that Rove told you he had nothing to do with it. Can you stand by that statement now?

MCCLELLAN: Yes, and I responded to these questions yesterday. Go ahead, Dick.

UNIDENTIFIED MALE: Can you explain why the president chose today to break with his usual practice of taking two questions from the American side at events with a foreign leader and only taking one?

MCCLELLAN: This time last Friday, I think, with Prime Minister Blair or Thursday they did the same thing.

UNIDENTIFIED MALE: The Oval Office practice is to take two questions. I'm just curious why... MCCLELLAN: They did that last week with Prime Minister Blair, as well. You'll have other opportunities to see him this week.

UNIDENTIFIED MALE: If he had responded to a question today about Karl Rove, would he have gone beyond your stance here on not commenting?

MCCLELLAN: You're going to have other opportunities to ask him questions. He takes questions on a fairly regular basis.

BOB FRANKEN, CNN CORRESPONDENT: Let me just do what you did a few minutes ago and step back from the context of the investigation to the president's agenda. Does Karl Rove, with all the attention being paid to him now, become a liability of the president and an impediment to him pushing his agenda?

MCCLELLAN: You're asking all these context -- all these questions in the context of the news reports.

FRANKEN: I'm talking about in the larger sense of Rove being the deputy chief of staff...

MCCLELLAN: We're continuing to move forward on our agenda and on the agenda -- we're on the verge of accomplishing some very big things when it comes to the agenda.

FRANKEN: But is Karl Rove now an impediment now, with all this attention distracting from that push on your agenda?

MCCLELLAN: Everybody who is working here is helping us to advance the agenda, and that includes Karl in a very big way.

HELEN THOMAS, WHITE HOUSE PRESS CORRESPONDENT: Has he apologized to you for telling you he is not involved?

MCCLELLAN: Helen, I'm not going to get into any private discussions.

THOMAS: He put you on the spot. He put your credibility on the line.

MCCLELLAN: And Helen, I appreciate you all wanting to move forward and find the facts relating to this investigation. I want to know all the facts relating to the investigation.

THOMAS: People are on the record, one quote after another...

MCCLELLAN: The president wants to get to the bottom of it. And it's just not appropriate.

If you'll remember back two years ago or almost two years ago, I did draw a line and I said, "We're just not going to get into commenting on..."

THOMAS: You made comments. You defended him. MCCLELLAN: We're just not going to get into commenting on the investigation that continues, and I think you've heard me explain why I'm not going to do that. I do want to talk about this.

UNIDENTIFIED MALE: Going out on a limb, Scott...

MCCLELLAN: I do want to talk about this, and we will talk about it once the investigation is complete.

DAVID GREGORY, NBC NEWS CORRESPONDENT: Do you regret what you said in 2003? Do you regret putting yourself so far out on a limb?

MCCLELLAN: David, you had your opportunity. I'll try to come back to you if I can, but I think I responded to...

GREGORY: You haven't responded to that. Do you think you went too far two years ago?

UNIDENTIFIED MALE: For the first time on (UNINTELLIGIBLE) on Kashmir is going on, for the first time the group is saying that they are showing the other side of the -- Kashmiris being brutalized and killing Kashmiri Hindus, and several congressmen were going to speak, including Congressman Wilson.

PHILLIPS: Scott McClellan there, once again, really getting a barrage of questions, hard-hitting questions from reporters concerning Karl Rove.

A lot of lawmakers talking about this, Democrats and Republicans. Was Karl Rove, is Karl Rove the leak regarding the name of a CIA agent that a "TIME" reporter was able to talk about? Karl Rove, of course, being the president's -- one of the president's closest advisors.

Ed Henry is listening to this also. He's on Capitol Hill. The reporters aren't -- they're just not going to let up, Ed.

ED HENRY, CNN CORRESPONDENT: That's right. For the second straight day, Kyra, you can hear Scott McClellan very much on the defensive about whether or not the White House misled the nation for the last two years about whether or not Karl Rove illegally leaked the name of this CIA operative, Valerie Plame.

Here on the Hill, as you mentioned, Democrats have been really turning up the heat on the White House, on Rove in particular. And today, two potential 2008 presidential candidates, John Kerry and Hillary Clinton, ratcheted up the pressure by indicating they believe Rove should be fired.

This came in a press conference this morning on homeland security, where Democrats were demanding more money for rail security, port security. And at the end of his statement, John Kerry said somewhat cryptically that he believes the White House cares more about the job security of top aides than homeland security for average Americans.

I pressed Kerry on whether or not he was referring to Rove. He then teed off on Rove. All the while Senator Clinton was standing next to Kerry off camera, nodding and smiling, and then she jumped in briefly at the end. Take a listen.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), MASSACHUSETTS: Is the value of day-to-day politics to the value of political advice and the value of his position greater than the national security of our country and the protection of the identity of people, as well as their own word and their own policy? The White House's credibility is at issue here, and I believe very clearly Karl Rove ought to be fired.

UNIDENTIFIED MALE: I saw you were nodding. (UNINTELLIGIBLE)

SEN. HILLARY CLINTON (D), NEW YORK: I'm nodding.

(END VIDEO CLIP)

HENRY: Now on the Republican side it's very interesting that amid these Democratic attacks the Senate majority leader, Bill Frist, is not rising to Karl Rove's defense.

Just a few moments ago I spoke to Senator Frist, briefly asked him about these Democratic attacks in the Rove case. He's saying that he cannot comment. He's not saying one way or the other, because he does not know the details of the grand jury investigation, sounding very much like Scott McClellan there.

Other top Republicans like Rick Santorum, though, are jumping to Rove's defense, saying they believe this is just politics on the Democrats' part; it's overheated rhetoric.

And Ken Mehlman, the Republican National Committee chairman, today putting out a very tough statement saying, quote, "The bottom line is Karl Rove was discouraging a reporter from writing a false story based on a false premise and Democrats are engaging in blatant partisan political attacks" -- Kyra.

PHILLIPS: Ed, I'm going to ask you to stay with us here for a minute. I want to bring in our senior political analyst, Bill Schneider, to talk a little bit more about this.

Bill, you've been listening to what Scott McClellan has been saying. Scott McClellan coming forward and saying, look, the president still has confidence in Karl Rove.

But let's talk about the credibility factor for a minute. If -- obviously this is going to continue to heat up. If, indeed, it comes out that Karl Rove is the leak, that this did happen, I mean, this is a man who shapes policy. How is this going to affect, as Scott McClellan was saying, the agenda from here on forward?

BILL SCHNEIDER, CNN POLITICAL ANALYST: Well, Karl Rove was called the architect of the administration's re-election the day after President Bush was re-elected in 2004. He's a key figure, deputy White House chief of staff. He's been called Bush's brain. There was a book written by exactly that title, the guy who really has been the political strategist and architect behind Bush's governing strategies.

PHILLIPS: And, Ed, you already pointed out already senators coming forward with some pretty harsh comments, no doubt Congress, members of Congress, this will be quite a controversy among Democrats and Republicans. What are they saying on the Hill? Is a resignation the way to go? Is it an apology? Should Karl Rove come forward and talk and not stand behind lawyers?

HENRY: Well, it's very interesting that Republicans like Bill Frist are not coming to the television cameras to defend Karl Rove right now. I think that they are very concerned that they do not know, as Bill Frist himself said to me, they do not know the details of this grand jury investigation. So they don't know how it all is going to turn out. And perhaps they're a little concerned about getting too far out on a limb in defending Rove at this point, because they do not know all the details.

And on the political ramifications, you were mentioning the agenda. Let's not forget, the president is about to engage in perhaps the fiercest political fight of his presidency, trying to push through a Supreme Court nomination, or two, as we've been speculating about. He needs Karl Rove now more than ever. It's going to be very interesting to see how this plays out, Kyra.

PHILLIPS: And finally, Bill, just to give a little context to how we got to where we are right now, this all began because of what was taking place in July of 2003 when this allegedly happened. Give -- give a little context to the issues of weapons of mass destruction, the war in Iraq and how Joe Wilson and his wife play into these issues.

SCHNEIDER: Well, Kyra, the president had said in his State of the Union in January 2003 that Iraq was attempting to acquire nuclear fissionable material from Africa. Former Ambassador Joseph Wilson had traveled to that country, to Niger in Africa, and wrote an op-ed piece, essentially alleging that the president's claims about Iraq's efforts to acquire nuclear materials was false.

Now, the issue -- there's sort of three issues going on here. One is a crime, one is a smear and one is credibility.

The crime would be leaking, deliberately leaking an agent's name. It's not clear that the standards defined by the law of committing a crime actually apply.

However, the issue of a smear is very much there. Namely, that the White House was attempting to discredit Ambassador Wilson as a critic of the administration's policy. That, in itself, is a political problem.

Third, we have the credibility problem that Ed Henry was referring to that you saw the White House press corps going after, namely that repeatedly over the last two years, the White House has said, No. 1, Karl Rove was not involved, and now we have an e-mail indicating he did speak to a reporter and, without mentioning the name said that Joe Wilson's wife was involved, did work for the CIA, despite the White House's claim that Rove had nothing to do with this story. And the White House has also -- the president himself has said on many occasions that anyone who was involved in this story should be fired.

So the people are asking, "Was the White House deliberately misleading the public about Karl Rove's Rove -- role in this, and does this damage the White House's credibility?"

PHILLIPS: And the president of the United States has come out and said he would fire whoever it was that was involved with this.

SCHNEIDER: Right.

PHILLIPS: It'll be interesting to see how this all continues to play out. Of course, we'll stay with it.

Ed Henry on the Hill. Our senior political analyst, Bill Schneider. Gentlemen, thank you so much.

Our coverage of the controversy will take center stage surrounding Karl Rove will take center stage on "INSIDE POLITICS" today, beginning at 3:30 Eastern. CNN will speak with former presidential adviser David Gergen about what the Bush administration needs to do now.

(BEGIN VIDEO CLIP)

PHILLIPS (voice-over): Next on LIVE FROM, a 19-month-old girl killed in the crossfire. A shoot-out between her father and the LAPD. The latest on the investigation into the shooting.

Later on LIVE FROM, a haunting image from the London bombings. We'll introduce you to the woman behind the mask.

Also ahead, countdown to launch. The first one since the explosive Columbia disaster. The brother of Columbia astronaut Dave Brown joins us to talk about the shuttle's return to space.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: Here in the newsroom we're taking about a probable cause hearing under way this hour in Coeur D'Alene, Idaho. Prosecutors say they expect to officially charge Joseph Edward Duncan with three counts of first degree murder. Duncan already is charged in the kidnapping of 8-year-old Shasta Groene and her 9-year-old brother, Dylan.

The murder charge stems from a triple homicide discovered May 16 in which the children's mother, older brother and the mother's boyfriend were found bound and bludgeoned to death. Investigators believe Shasta and Dylan were kidnapped at the same time.

Duncan is always -- is also, rather, a suspect in the death of Dylan Groene, whose body was found buried in a remote campsite in Montana.

An armed suspect, a standoff, an officer shot and now a baby girl is dead. CNN's Thelma Gutierrez in Los Angeles with the story of an agonizing choice and a mother left asking why.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): One day after 19-month-old Susie Lopez is killed in the middle of a ferocious gun battle, the baby's devastated mother searches for answers.

LORENA LOPEZ, MOTHER: (speaking Spanish)

GUTIERREZ: Lorena Lopez says Los Angeles police did not respect her baby's life. She says she begged police not to shoot at the baby's father, 34-year-old Jose Raul Pena, during a 2 1/2-hour standoff with Los Angeles police. But police say they had no choice.

CHIEF WILLIAM BRATTON, LOS ANGELES POLICE: On three separate occasions he opened fire on officers. Officers have the right to protect themselves, their fellow officers and innocent bystanders and have the right to shoot back when faced with that danger.

GUTIERREZ: Pena, who was holding his 19-month-old daughter in his arms, fired 40 rounds at police, injuring one officer. Police returned fire 90 times. Pena and 19-month-old Susie were killed.

LOPEZ: (speaking Spanish)

GUTIERREZ: Lorena Lopez wants justice. She says she wants to know how her baby ended up in the cross-fire.

BRATTON: My heart goes out to the child's mother and to the family. Unfortunately in this instance the suspect's actions left the officers no choice.

GUTIERREZ: Until an autopsy report is completed it won't be known whose bullets killed the baby, her father's or those of Los Angeles police.

Thelma Gutierrez, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: In Park City, Kansas, the home of confessed BTK killer Dennis Rader is sold at auction. The winning bid, $90,000 on a modest home that appraised for just $57,000.

The buyer is a self-described real estate investor who is well known in the Wichita area as the owner of an exotic dance club. Michelle Borin says she has no plans for the home at this point but says she deliberately overbid on it just to help Rader's family. Rader is due to be sentenced to death -- or sentenced, rather, next month after pleading guilty to 10 counts of first degree murder.

While Dennis is pretty much done after dumping a lot of rain, check out these pictures from Georgia. Forecasters keeping an eye on Emily. We've got details on the new storm straight ahead.

And the countdown is on. We'll get you ready for the launch of Shuttle Discovery.

And do hands-free cell phones really keep you from getting distracted behind the wheel? The results of a new study, straight ahead.

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

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PHILLIPS: Former Enron workers could finally be getting a payout. Kathleen Hays has that story from the New York Stock Exchange -- Kathleen.

(STOCK REPORT)

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