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Live From...

Israelio Withdrawal; Terrorism Alert Levevl Lowered; New 9/11 Tapes; British Airways Strike

Aired August 12, 2005 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR, LIVEFROM: It will give you chills: Haunting sounds from the day America came under attack. New 9/11 tapes released.
RICHARD QUEST, CNN CORRESPONDENT: Lowering the threat level: Homeland Security announces a change for American's mass transit system.

The Friday weekend rush hour gets under way at the airport. But how many passengers will actually leave tonight. We will have the details in a moment.

PHILLIPS: Stranded by a strike. But these airline passengers may soon be ready for takeoff. We are live, as you know with Richard Quest from the CNN Center in Atlanta. I'm Kyra Phillips. The second hour of LIVE FROM... starts right now.

We begin this hour with the end of the line for now of code orange in the nation's mass transit system. Thirty-six days after U.S. subways, city busses, and commuter trains were put on high alert in the wake of those deadly attacks in London. The Homeland Security Department plans to kick things down a notch. CNN's Jeanne Meserve draws us up a map in Washington. Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Kyra, it's going to start happening tonight at 8:00 p.m. local time. It's going to move in a wave across the country. As local rush hours end across the country. The Department of Homeland Security says there are two reasons they're doing this. One, that they feel the baseline of security in many transit systems have improved as a result of preplanning and as a result of what went into place on July 7th. They also say at this time, there is no specific credible intelligence information indicating that an attack on the United States is imminent.

However. They're aware of the London, Madrid bombings of course. That those were conducted without any warning. A careful eye being continually kept on all of the intelligence. At the same time the threat level is moving down for transit systems, it will also be moving down for large passenger ferries. The Coast Guard has been in charge of that.

Now Homeland officials say this whole exercise has taught them a little bit about communications, and the sharing of intelligence with the private sectors, and their state and local partners. Another lesson they have learned, this is one of the few times that the threat level has been moved up for only one sector. They say one benefit of that was that there could be more sharing of resources. If it had been abroad based move to orange other police agencies and so forth wouldn't have been able to lend a helping hand to the transit agency to improve security as they did in the wake of those bombings in London on July 7.

Kyra.

PHILLIPS: All right Jeanne Meserve. We'll continue to stay in touch with you on the threat level and the status. Stay tuned to CNN day and night. The most reliable news about your security.

First in, last out, last to tell their stories. The first responders of 9/11, New York firefighters who sped to ground zero when thousands of people were trying to get out. Are giving witness this hour. In many cases pustules witness through audio recordings and transcripts newly released by the city on the orders of the states highest court. CNN's Mary Snow is actually going through them as a number of producers. Pretty hard to listen to huh Mary?

MARY SNOW, CNN CORRESPONDENT: They are Kyra. And that's exactly what some of the families of the firefighters are saying. It is very painful to listen to these recordings, but they say or some say it's a necessary thing do. This is 23 CDs and it includes the radio transmissions from the fire department on September 11th. It also includes oral histories of firefighters after September 11th. Some 12,000 pages or so. The audio recordings of these fire department transmissions begin at 8:46 when tower one of the World Trade Center had been hit. And we hear a transmission saying the World Trade Center Tower number one is on fire.

And at times you can clearly pick up that there are moments of caucus, also there are lapses of silence. Certainly these tapes are chilling at time and very vivid. There was a call for a 1060, which is a code for a major emergency response, and then we have an excerpt at around 9:03 when the second tower was hit.

Now these audio transmissions were released earlier today. We have a team of producers here at CNN going through them, and also, we have oral histories from firefighters from one chief fire marshal saying that at the time, police officers that were trapped were shooting their guns off to try to draw attention to where they were trapped. Now this released today is the result of a lawsuit that was initially started by the "New York Times," and families of fire fighters also joined in this legal battle because they wanted to the city to release these audio transmissions to try and gain information about their loved ones, information about what happened that day.

The city had argued that there are some moments that are just too private, and in fact, some of those moments have not been included on those recordings. The New York City fire department today did release a statement saying it is the departments hope that the release of these records will not cause our members and their families any additional pain or anguish. So certainly there was a difference of opinion on whether or not these should be released. But after several years in courts they were released today.

Kyra.

PHILLIPS: You know Mary, we listen to those recordings and we think back to 9/11 and how horrendous it was. And everybody had their American flags out and we really came together as a nation. A couple years have gone by. A lot of people talked about, hey, we can't forget that day. Then you hear these transmissions. I'm just curious. Did it affect you the same way; the news room as our producers are listening to these and also have you been able to talk actually with family members or survivors and what's the buzz?

SNOW: Absolutely Kyra. This recording is so chilling at times and brings back 9/11. I did talk to one firefighter earlier who said it was really very eerie, that he recognized some of the voices on the tape, saying it was very chilling to hear those voices once again and bring fire fighters back to life for those moments.

Some family members have said that that they do not want to listen to the tapes. One man who lost his wife said that he was going to get a copy of the tape for historical purposes, but that he certainly did not want to listen to it. It was just clearly too painful to relive it. The firefighter I spoke with said yes he did relive that day.

PHILLIPS: Mary Snow. Thank you.

Well it took some doing for George and Jennifer Hyatte to reach Ohio, and they're in no hurry to leave. In separate, very different court appearances today in Columbus the hard time inmate and the wife were allegedly gunned down a guard both indicated that they will fight extradition to Tennessee. Jennifer Hyatte was mute, seemingly dazed. George was talkative, intense, determined not to go back without his former nurse and bride of three months. Both former fugitives are charged with first-degree murder in the wake of Tuesday's ambush at that Tennessee courthouse.

Its three days and counting for Iraq's political leaders to agree to a constitution. With the Monday deadline looming, leaders of the Sunni majority or minority rather are speaking out today against Shiite demands to control entire sections of central and southern Iraq. Not coincidentally those parts have a lot of oil. The constitution being drafted will be put to a public referendum in October.

At least one U.S. soldier has died today in Iraq. That solider was killed by a roadside bomb while on patrol near Tikrit. Forty-six American troops have been killed in Iraq this month. The total for that war is now 1,844.

Israeli Prime Minister Ariel Sharon says that he has no regrets over a disengagement plan that has Palestinians rejoicing. Next week the Israeli government will tell the last of 9,000 Jewish settlers, mostly in Gaza, to leave their homes. CNN's Guy Raz spoke to residents of one Jewish settlement. Many of them say they have no intention of leaving.

(BEGIN VIDEOTAPE) GUY RAZ, CNN CORRESPONDENT (voice over): A frantic rush to prepare for a hold out. The hard core who remain inside the Gaza settlement stocking up on food and water.

ELI GOLDMINTZ, DISENGAGEMENT OPPONENT: Nobody can really see the future. So people are stocking up. They don't know if the water is going to be flowing. So everybody is buying water.

RAZ: Rumors are spreading fast among those who have decided to defy Israeli authority and remain. The government will cut water and electricity they whispered. Dysentery will spread. People will die of hunger. Hogwash, says the Israeli army. But it hasn't quashed the conspiratory tone that circulates among the shoppers.

OFRA MERMELSTEIN, GAZA SETTLER: We're stocking up on food because our government is closing us in.

RAZ: Elsewhere, the protests continue. But few in Israel are listening anymore. The settlers have lost the political battle for now. Few are prepared to acknowledge it.

CHAIM EISEN, DISENGAGEMENT OPPONENT: There's bottled water.

RAZ: Chaim Eisen displays his stock of provisions. His friend Rachel Saperstein refuses to pack. In her home, a casom rocket fired by Pakistan militants just beyond the settlement displayed like a work of art.

RACHEL SAPERSTEIN, GAZA SETTLER: You're going to have to tell the government, no, you cannot take the people out. .

RAZ: Rachel Saperstein too is preparing for siege.

SAPERSTEIN: We're going to stay here as long as possible, as long as our food supply holds out, our water supply and beyond that.

RAZ: Beyond that probably won't be so long. Come Monday morning, Israeli's army will seal this road behind me. No traffic in or out except for the army vehicles moving the settlers back to Israel.

Guy Raz, CNN, Gaza.

(END VIDEOTAPE)

PHILLIPS: British Airways says that all of the striking workers at London's Heathrow Airport are returning to their jobs. The wildcat strike forced the airlines to cancel hundreds of flights. Leaving at least 70,000 passengers stranded all over the world. For the latest now let's go to our Richard Quest. He is live at Heathrow. Give us a little background too Richard on why they went on strike in the first place?

QUEST: The reason for the strike was because baggage handlers went out in sympathy for the catering workers who were employed by a supplier, called Gate Gourmet. Now Kyra we are looking, now you see that sign, hear that noise? That is music to the people here at Heathrow Airport. Because this means that the airline is starting to get back to normal. For instance, these people here, now, you have been waiting.

UNIDENTIFIED FEMALE: Yes. Off to number one.

QUEST: They have been here a good 20-odd hours at the airport. What they're starting to do now is get some of the flights moving again. Flights have already left to some places in the Middle East. Casablanca, we expect Braun, we're now looking to Singapore, to Melbourne, to Sydney, all of those flights. They'll be leaving in the next few hours.

So Kyra it's a bittersweet story for passengers. The passengers who will get on those planes are the ones who were already booked on it. The big mass of passengers waiting over there, they're going to have to wait their turn for their turn for those free seats coming up in the days ahead.

PHILLIPS: I just can't imagine. That's got to be so frustrating. Are those flights going to be catered?

QUEST: No one knows. The catering dispute isn't over. You could end up on a flight for 9 to 11 hours with a bag of peanuts and a sandwich. The really Sat on the hand because the fair way to do it, the fair way to get people on these planes would say booked passengers first. These people, who have been waiting an hour, they get to go on their trips. Those people over here, who have been waiting 30 hours, they're going to have to wait a great deal longer, and it will be peanuts all around.

PHILLIPS: Well Richard Quest, you deserve a break, too. I will tell you what you've been working this story for hours and hours on end for the past 24 hours. Thank you so much for giving us one more live shot. You are a trooper. Thank you.

Straight ahead, he was convicted in the death Civil Rights workers just two months ago. Now, Edgar Ray Killen may go free on bail. We've got details ahead on LIVE FROM.

CHRIS HUNTINGTON, CNN CORRESPONDENT: I'm Chris Huntington live for the New York Stock Exchange. Stocks are taking a beating today. I'll tell you why when LIVE FROM continues.

(COMMERCIAL BREAK)

PHILLIPS: Pain at the pump. We're all feeling it. Gasoline prices continue to hit record highs and AAA says the national average for a gallon of self-serve regular now is $2.41. Some places such as San Francisco, prices have skyrocketed to more than $300 a gallon. A new poll finds almost two-thirds of Americans believe that rising fuel costs will cause them financial hardship in the coming months. Stocks are deep in the red today. Chris Huntington watching all the action live from the New York Stock Exchange. Chris, what's the problem?

HUNTINGTON: Kyra no surprise. You don't have to be a rocket scientist down here today. Oil prices are the big concern. Of course they're surging and that's sending stocks sharply lower. A triple digit decline for the Dow Industrials they are just barely below 100 points. But it has been more than 100 points up for the last hour or so. The Nasdaq composite in percentage terms is down even more. Checking on crude prices right now, up $1.15 at $66.95 about. Prices briefly surged above the $66 a barrel level earlier in today's session. Those prices are 50 percent higher than they were at the beginning of the year. And analyst says that the gasoline demand where it is, $70 a barrel is a real possibility in the near future.

Kyra.

PHILLIPS: All right. One area that been supporting the economy, of course super hot housing market, but now there's some signs that may be cooling off.

HUNTINGTON: No Kyra. If you look around your neighborhood, chances are you'll find a number of for sale signs. According to the National Association of Realtors the number of homes for sale has increased sharply in some of the hottest real estate markets. And that suggests that the buying spree may be slowing down. That the housing market could be peaking. There were 2.7 million homes for sale in June. That's up from 2.3 million the same time a year ago. But analysts say the supply may finally be catching up or even possibly exceeding demand.

That's the latest from Wall Street. CNN's LIVE FROM continues right after this.

(COMMERCIAL BREAK)

PHILLIPS: Well, a storm in the Atlantic is on the brink of becoming the season's third hurricane. Rob Marciano in the Weather Center with a little news about his friend Irene. Maybe I shouldn't say she is your friend.

ROB MARCIANO, CNN METEOROLOGIST: If she continues to head out to sea or stay out there. Then at least she will be everybody's friend.

PHILLIPS: OK.

MARCIANO: So you are right about that. It could very well be a hurricane and that is the fad in the National Hurricane Center. I'll show you pictures of that in just a second. If it were to make landfall across the northeast, at least it would knock down some of these temperatures. I mean these are the heat indices. From New York to Philadelphia feels like 100, it feels like a 101 in D.C., 97 degrees in Pittsburgh. So a tremendous amount of heat built up in the atmosphere and humidity as well. There is a weak front that is trying to push this way, but having a hard time doing so.

A little bit of rain up across upstate New York. And then this watch box for severe thunderstorms until 8:00 tonight. So be under the gun, be aware of that if you live in Pennsylvania. Chicago west toward Omaha and down towards Lincoln, Nebraska also some showers. But much needed rain there. Today's highs are expected to be in the 90s well in the eastern two thirds of the country. A bit of a cool off. Not really. Maybe Chicago and Minneapolis. But that cool air is going to hang it looks like through the weekend. Heat and humidity down to the south.

Here is Irene, Kyra. 65 miles an hour winds. Going to miss Bermuda. The official forecast brings it to just the Outer Banks and hopefully curving opposite. Then Irene would be my best friend.

PHILLIPS: Sounds good. All of our best friends. All right. Thanks Rob.

Well President Bush calls it part of the access of evil. Many Americans remember it for the 1979 revolution and hostage crises. But what is Iran really like? Ahead on LIVEFROM, one family's journey from the revolution to America. You won't want to miss it.

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PHILLIPS: Former Klansman Edgar Ray Killen may soon be out of bail. The 80-year-old Killen was convicted of manslaughter in June in the killings of three Civil Rights workers 41 years ago. Now, a judge in Mississippi granted Killen a $600,000 bond. Killen's family is reported to be trying to gather enough money or property to post the bond while he appeals the conviction.

In Washington State, the governor declares a state of emergency. Wildfires have destroyed more than 100 homes, the largest fire scorching about 48,000 acres in Pomeroy. Officials say that blaze is now 40 percent contained. A mix of summer cabins and full time residencies have been destroyed. More than 100 outbuildings also have been burned.

There's been an assassination attempt on the Sri Lanka Foreign Minister. We are told that he's shot buy suspected Tama tiger rebels just outside his residence in the capital of Colombo. He has been rushed to the national hospital for emergency surgery. We'll keep you updated on his condition.

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