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Speech on Terror; Violence Escalates in Iraq; White House Spy?

Aired October 06, 2005 - 13:59   ET

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

KYRA PHILLIPS, CNN ANCHOR: Hurricane Katrina claims two more victims. New Orleans' main hospitals face possible demolition. The Crescent City's medical system is in critical condition.
A mother's love turns to unspeakable loss and stunning courage. Now a new film seeks justice 50 years after the murder of Emmett Till. Paying tribute to a woman whose personal tragedy became a catalyst for social change.

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

The bombs go off, the war goes on, the polls go down. Now President Bush goes into, for him, unusual details on the stakes in Iraq and the mindset of an enemy that he says covets a radical Islamic empire.

Here's CNN's White House Correspondent Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, here's where the president really framed this war on terror. He called it a battle against Islamofacism, saying that this was a loose network made up of al Qaeda local, regional cells all sharing the same ideology of hatred against the United States. All of them trying to gain control over moderate Muslim governments and to establish what he called a radical Islamic empire stretching from Spain to Indonesia.

Now, it was passionate rhetoric we heard from the president. Obviously meant to convey that the stakes are high for Americans to stick with this.

This was also a speech that was billed as being significant, that one would have many unprecedented details. The one detail that we were able to get out of this speech is the fact that the president said that there were some foiled attacks after September 11. He used this example as a signal, as a sign that the war on terror has been successful.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Overall, the United States and her partners have disrupted at least 10 serious al Qaeda plots since September the 11th, including three al Qaeda plots to attack inside the United States. We've stopped at least five more al Qaeda efforts to case targets in the United States or infiltrate operatives into our country. Because of this steady progress, the enemy is wounded. But the enemy is still capable of global operations.

(END VIDEO CLIP)

MALVEAUX: And Kyra, at least two of those cases have been well publicized. The other eight, we are told, are classified, so we don't have any other details about that. But this speech really was a great disappointment to those looking for any kind of new policy initiatives or changes, or any type of details when it came to strategy.

(BEGIN VIDEO CLIP)

SEN. DICK DURBIN (D), ILLINOIS: We had hoped in that speech that the president would explain how we would implement a new strategy in Iraq, a strategy that would explain how we would be able to begin to draw down our troops. Sadly, the president did not address that issue.

(END VIDEO CLIP)

MALVEAUX: And, Kyra, of course this speech comes at a critical time for President Bush as he loses support among Americans who don't believe in the Iraq mission. And also, of course, when you look forward to next week, an important time for the Iraqis when they vote for their own constitution, a time when we believe the president says will be an uptick in violence before that vote happens. He is trying to prepare the American people for that possibility -- Kyra.

PHILLIPS: Our Suzanne Malveaux, live from the White House.

Well, fighting words from London aimed at Iran and its proxy militia, Hezbollah. Playing host to Iraqi President Jalal Talabani, British Prime Minister Tony Blair today suggested Iraq's insurgents are importing their bomb-making know-how. Over the summer, several British troops fell victims to explosive that Blair says are similar to devices used by Hezbollah.

Iran and Hezbollah deny any role in Iraq, claiming foreign forces are the main causes of instability. And Blair denies that.

(BEGIN VIDEO CLIP)

TONY BLAIR, BRITISH PRIME MINISTER: The idea that these terrorists and insurgents are fighting the presence of the multinational force, their terrorism is the reason why the multinational force is to stay until the Iraqi forces are capable of handling their own security, which we're building up the whole time. So, we've got to at every single level expose these elements that are trying to destroy a new Iraq getting on its feet and realize this is a battle now for the future of Iraq, for the future of the region. Actually, for the future security of the world.

(END VIDEO CLIP)

PHILLIPS: Now, in Iraq, more insurgent attacks, more Iraqis and Americans killed. Two suicide car bombings in Baghdad killed at least 10 Iraqis, and a U.S. soldier was killed by a roadside bomb. Today's attacks are just the latest in recent days as Iraqis prepare to vote in next week's referendum on a new constitution.

Joining us now live in Baghdad, CNN's Aneesh Raman -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Kyra, good afternoon.

The violence continuing to escalate. The deadliest attack today took place in the capital city after a suicide bomber went on a minibus that was housing Iraqi police recruits and detonated just as the minibus was passing outside Iraq's oil ministry. At least 10 people were killed, eight others wounded.

Another suicide car bomb went off just before that. This time, the target, a convoy of American contractors. That explosion wounded at least eight Iraqi civilians.

And south of the capital, in the town of Hilla, a massive suicide bombing last night has left 36 people killed, upwards of 95 others wounded. It happened just about 24 hours ago.

A suicide bomber entered a Shiite mosque as a funeral was taking place. It was a crowded mosque. This, of course, the holy month of Ramadan.

The U.S. military, as well as President Bush, has said we should expect a spike in violence as we head towards that critical date, Kyra, of October 15. In a briefing today, Major General Rich Lynch explained what we could expect.

(BEGIN VIDEO CLIP)

MAJ. GEN. RICH LYNCH, U.S. ARMY: It is predictable over the next nine days that there will be significant acts of violence here inside of Iraq, because that is the modus operandi of the insurgency. Democracy equals failure for the insurgency, specifically for al Qaeda in Iraq. And they're going to do whatever they can do to derail the democratic process.

(END VIDEO CLIP)

RAMAN: Now, because of that, the U.S. military continues a number of offenses in the western Al Anbar province aimed at curbing the insurgency there, Kyra, stopping the flow of weapons and foreign fighters into the capital and elsewhere in the country ahead of that critical vote. But also, really securing that area so that Sunnis in Al Anbar province can go out and vote.

You'll recall back in January the Sunnis boycotted the elections, many because they didn't feel safe enough. The insurgency was threatening those who went to the polling stations. So now, with U.S. military presence, as well as Iraqi security forces there, the hope is that Sunnis will turn out on October 15 -- Kyra.

PHILLIPS: Aneesh Raman. And we'll be following it, of course. Well, in the U.S. Senate, a setback for President Bush on the controversial issue of the treatment of prisoners in the war against terror. At issue, an amendment to a Defense Department spending bill that imposes restrictions on the treatment of prisoners held by the U.S. military. The Senate last night overwhelming approved the measure which was sponsored by Republican Senator John McCain but opposed by the White House.

Among other things, the measure would prohibit cruel, inhuman and degrading treatment of prisoners in U.S. custody, something the White House says is already covered in existing law. McCain says that the alleged abuse of the Iraqi detainees at Abu Ghraib prison is one reason the measure is needed.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: I might add the obvious. The image of the United States was very badly harmed by the pictures of prisoner abuse. We have to send the message to the world that we will not ever allow such kind of treatment to be repeated.

(END VIDEO CLIP)

PHILLIPS: The White House says if the amendment remains in the $400 billion spending bill when it reaches the Oval Office, President Bush would likely veto it.

Well, under investigation this hour, allegations of espionage at the White House. The target of the FBI probe is a former Marine who worked in the office of the vice president.

Our National Correspondent Bob Franken is on top of the developments and joins us live.

And Bob, you know it's interesting, and you and I know how strict it is. And just getting into the White House or getting into one of these buildings, I mean, they check your entire background. It just seems so surprising that this has happened.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, he was a member of the Marines, and the assumption would be that this was somebody who would be trustworthy. And, of course, the assumption now is that he is under investigation -- repeat, under investigation -- with no conclusion, at least one that is announced, that he actually did download material from computers at the White House.

The federal officials are saying that somewhere along the line, maybe after he left the White House and went to work as an FBI analyst, Leandro Aragoncillo did give classified material to foreign nationals. That's the term that the investigators are using.

Those foreign nationals were opposition political groups in his native land of the Philippines. He is a naturalized U.S. citizen but was born in the Philippines and had strong feelings about that there.

Officials also say that he worked in conjunction with at least one associate, a man by the name of Michael Aquino, who is identified as a former member of the Philippine Secret Service and somebody that officials say they say expect to indict perhaps as early as today.

Now, in the Philippines there is political turmoil. The current president, Gloria Arroyo, has barely escaped impeachment. As far as Aragoncillo is concerned, he was somebody who apparently was in favor of the opposition groups.

Newspapers there report that some of the opposition politicians report that they had gotten some of these documents. It's unclear whether they came from the White House or perhaps the FBI.

But the investigation is going on.

Meanwhile, the question that you raised about the vetting process to get in the White House was put today to the man who used to work there who is now the attorney general, Alberto Gonzales.

(BEGIN VIDEO CLIP)

ALBERTO GONZALES, ATTORNEY GENERAL: We have people that work at the White House, some are employed by other agencies or detailed into the White House. Some are directly working in the -- the executive office of the presidency. So, depending on where they may be -- who may employ them, may -- may determine who actually vets them when they come to work in the White House.

(END VIDEO CLIP)

FRANKEN: The -- of course, the investigation is still now allegations, at least as far as public disclosure is concerned. But certainly, another investigation will be, how did this one slip through the cracks -- Kyra.

PHILLIPS: All right. Bob Franken. Thank you.

And in another spy case, a former top Pentagon analyst says that he never meant to harm the United States, but that as it may, Larry Franklin has pleaded guilty to giving classified information to an Israeli embassy official and two members of a pro-Israel lobbying group. During a plea hearing yesterday, Franklin says that he did it because he was frustrated with the government. He faces up to 25 years in prison at his sentencing in January.

Still ahead on LIVE FROM, a tropical storm in the East, wildfires in the West, and snow jamming the passes in Montana. Details on all the weather weirdness this hour.

And it's code blue for two New Orleans hospitals thanks to Hurricane Katrina. What does that mean for the future health of the city? We'll get the prognosis from the chief of Charity and University hospitals.

(COMMERCIAL BREAK)

PHILLIPS: Live pictures right now. This is coming to us from our San Diego affiliate, KGTV. This is actually the fire that we've been talking about at the San Diego-Mexico border. Actually, a 3,100- acre blaze that erupted here in Mexico. It jumped that U.S. border there at San Diego and Mexico, that line.

It's 10 percent contained right now. About 2,100 acres on the U.S. side of the border have now burned. But we are told it is contained. The fire is in the Takati Peak (ph) area, and it's not threatening any structures.

We'll stay on that, bring you more information as we get it.

Meanwhile, there's no shortage of wild weather across the country. A tropical storm in the Southeast, big snowfall in the northern plains, and a dangerous wildfire out West.

We're going to start in southern California, once again, where firefighters are busy in Riverside County, just outside of Los Angeles.

Thelma Gutierrez is standing by with more there -- Thelma.

THELMA GUTIERREZ, CNN CORRESPONDENT: Kyra, I can tell you that the latest here is that helicopters are now flying in those rugged, steep canyons that you see behind me, and they're dropping up to 2,000 gallons of water on all those hot spots that are sprinkled throughout that area.

On the ground, in friendlier territory, hundreds of firefighters are combing through the brush. They're looking for hot spots, trying to put those out. And in many ways, this is a race against Mother Nature.

They were able to gain control of this fire, this thick 6,000- acre fire, because the winds had died down early this morning. And firefighters were able to gain some control. The problem now is that the winds are picking up a little bit. Temperatures are expected to go up into the 90s, and the humidity is low. So those are all very dangerous conditions that could decide how this fire plays out today.

The good news, though, is that there are no homes, no structures that are currently threatened. And there were roads closed in this immediate area, in addition to the Highway 60 in both directions. The Highway 60 and the roads have been opened, and now residents are able to get in -- Kyra.

PHILLIPS: Well, Thelma, we're watching the live pictures right now via our affiliate, KABC. Pretty awesome to watch the helicopters drop the water with the baskets there on the areas. And you can see all the various spots where they've been able to put out the -- you see the charred acres there, but it looks like tremendous progress when you see that wide shot now via the helicopter that we're looking at through KABC. It's -- it's pretty amazing to look at.

Thelma, thank you.

Well, in Montana, it already looks like winter. Up to 11 inches of rain fell in the southern part of the state yesterday, downing trees and knocking out power to thousands of people. Snow drifts closed two major highways, and officials set up two emergency shelters for people who needed a warm place to spend the night.

Down South, Tropical Storm Tammy has dumped up to 10 inches of rain in Georgia and parts of the Carolinas. Along the Georgia coast, several dozen homes are flooded. There's water in the streets, and about 16,000 people have lost power.

Tammy is the 19th named storm of the year. And 2005 is now tied for the second busiest hurricane season on record.

Rob Marciano, I know you would love to take a nap about now.

(WEATHER REPORT)

PHILLIPS: Well, just ahead on LIVE FROM, targets cited and destroyed. News about the new vaccine that is called 100 percent effective in the battle against a certain type of cancer.

And a new financial crisis has police in St. Bernard Parish seeing red. Will Congress step in with some much-needed green?

SUSAN LISOVICZ, CNN CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange. Coming up, whether it's high prices at the pump, or the Lance effect, it looks like commuters are embracing a new mode of transport. I'll have that story next on LIVE FROM.

Stay with us.

(COMMERCIAL BREAK)

PHILLIPS: Back live in B Control. We're checking some of the top stories in the news right now.

A boat similar to the tour boat that capsized Sunday and killed 20 elderly passengers has failed a stability test. Federal safety officials in Lake George, New York, tried to load the boat with 55- gallon drums to simulate the weight of passengers, but the boat began to tilt before the test was complete.

More developments in the battle against bird flu. The State Department is hosting officials from 65 countries today for talks on how to keep the virus from spreading. President Bush plans to meet tomorrow with top pharmaceutical officials to talk about ramping up production of a vaccine.

Promising news from the battle against cancer among woman. An experimental drug for cervical cancer has been found 100 percent effective in the short term at blocking the most common cause of the disease. Drug maker Merck says it plans to seek FDA approval for its vaccine by the end of the year.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK) PHILLIPS: Well, taking steps to try and help pay the salaries of law enforcement personnel in some hurricane-stricken areas, it's tough. But the sheriff in St. Bernard Parish, Louisiana, is asking for help. He said that he had no money to pay his officers, and the White House quickly said it would ask Congress to change the rules to allow federal disaster funds to be used to pay salaries.

And the acting director of FEMA told Congress today that loans from FEMA already can be used, although there is a $5 million cap on those loans. And that might not have much of an impact in New Orleans.

CNN's Dan Simon has more on the payroll crunch.

(BEGIN VIDEOTAPE)

CAPT. JIMMY BARTHOLOMAE, ST. BERNARD SHERIFF'S OFFICE: It's nice to go to work. You can still do the good thing and help people and all that.

DAN SIMON, CNN CORRESPONDENT (voice over): Law enforcement is in Jimmy Bartholomae's blood. A captain with the St. Bernard Sheriff's Department, he stayed on the job despite losing everything he owns and being separated from his wife and five kids.

BARTHOLOMAE: It's not easy to do that, to have a long distance family.

SIMON: The last thing he should have to worry about right now is whether he's going to receive his paycheck. But that's the personal crisis facing him and every single deputy and employee of the St. Bernard Sheriff's Department. An estimated total of 400 people. Half of whom already are on temporary furlough because of the storm.

BARTHOLOMAE: You know I'm really pissed off about what the situation I'm involved in.

SIMON: The sheriff's reaction is understandable. His guys have worked hard putting in long hours to help the parish recover from Katrina. But the numbers don't lie. The tax revenue that funds the sheriff's office is no longer coming in. The situation on payday two weeks from now could even be worse, no money left at all. And no government agency, he says, federal or state, has offered to help.

BARTHOLOMAE: We're at the end of our rope now.

SIMON: The question you and your buddies have to answer right now is, how long would you be willing to work without a paycheck? I mean that's what we're looking at here.

BARTHOLOMAE: You know, I don't know. You know, nobody seems to know.

SIMON: The uncertainty hanging over his head, Bartholomae, for the first time in his 20-year career, is wondering what else he can do with his life. Adding to the stress, take a look at his home. BARTHOLOMAE: My home's gone. A big glob of mess.

SIMON: And look across the street.

Let met me understand this correctly. The refrigerator from your house is now on this roof?

BARTHOLOMAE: Right. Across the street.

SIMON: Bartholomae is holding up. Other in the department are having more difficulty.

UNIDENTIFIED FEMALE: I don't know how much stronger I can be and last. I really don't. I really don't.

SIMON: Rhea Guchi (ph), her husband and her daughter all work for the sheriff. It's clear the stress has taken its toll.

UNIDENTIFIED FEMALE: I'm one of the people that do not have flood insurance, so I don't know what I'm going to get out of this. Maybe nothing. And I'll have to start from scratch again. Losing everything, you know, we worked all our life for. I just don't know.

SIMON: Dan Simon, for CNN, St. Bernard Parish, Louisiana.

(END VIDEOTAPE)

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