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Execution of Stanley Williams a Disturbing Scene; Iraqis Prepare to Vote; President Gerald Ford Admitted to Hospital; Difficult Journey For Family of Killed U.S. Soldier

Aired December 13, 2005 - 15:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: A developing story now that we have been following all afternoon, the health of former President Gerald Ford.
Our Tony Harris working it in the newsroom right now -- Tony.

TONY HARRIS, CNN CORRESPONDENT: Good to see you, Kyra.

It's a story we have been following all day today. The 38th president of the United States, Gerald Ford, in the hospital for what is described as a series of tests, a routine test -- not sure of the symptoms that led to the trip to the hospital.

I want to read to you a -- a brief statement a few hours ago now from Penny Circle, the president's chief of staff. It reads: "President Ford was admitted to Eisenhower Medical Center at Rancho Mirage, California. He is undergoing medical tests and will be released when those tests have been completed."

Now, Circle goes on to tell the Associated Press that the tests are scheduled each December and that he has a horrible cold and still hasn't gotten over it.

Now, during the daily White House briefing, White House Press Secretary Scott McClellan was asked about Ford's condition. And here's what he had to say.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I don't have any additional information, other than -- than what his office put out. We wish President Ford well and a speedy recovery.

(END VIDEO CLIP)

HARRIS: And just a couple of past health issues that we're aware of, Kyra -- a mild stroke during the 2000 Republican National Convention and a dizzy spell while playing golf in 96-degree heat. That was in 2003. Now, the former president is 92 years old.

Now, we expect to hear from CNN's Dan Simon soon. He's on his way to the Eisenhower Medical Center. When we catch up with him, we will get the latest information from where he is, at the hospital. And we are going to talk to the editor of one of the local papers in the area to find out what the former president has been doing with himself over the last couple of years -- all that coming up this hour -- Kyra.

PHILLIPS: All right, Tony, we will stay on top of it.

(CROSSTALK)

PHILLIPS: Thank you so much.

Well, the eyes of the world are also on Iraq. So says Condoleezza Rice, as she continues the administration's push to shore up support for the war. The secretary of state spoke this afternoon to the Heritage Foundation, a conservative think tank in Washington. Rice says that more countries are realizing that securing democracy in Iraq is essential to the Middle East and the world. And she says now is not the time to pull out.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: If we quit now, we will give terrorists exactly what they want. We will desert Iraq's democrats at the time of greatest need. We will embolden every enemy of liberty across the Middle East. We will destroy any chance that the people of this region have of building a future of hope and decency. And, most of all, we will make America more vulnerable.

(END VIDEO CLIP)

PHILLIPS: Rice also had some tough words for two of Iraq's neighbors. She said Syria still hasn't done enough to keep foreign terrorists out of Iraq. And she says Iran keeps meddling in Iraqi affairs.

Well, Iraqis go to the polls in less than 48 hours. So, what is at stake and what do Iraqis think about it?

Our chief international correspondent, Christiane Amanpour, takes a look.

(BEGIN VIDEOTAPE)

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT (voice-over): The Iraqi army is voting first. And it will be protecting the polls when the public pass ballots on Thursday.

And, again, the big question is what will the Sunnis do, the minority who had supported and benefited from Saddam Hussein's regime. The Bush administration notes Sunni turnout in October's referendum on a proposed constitution, but it doesn't say they overwhelmingly rejected it. This time, the administration hopes that Sunni turnout could help turn things around.

In Baghdad, Sunnis, like Shias and Kurds, tell us that they will go to the polls.

UNIDENTIFIED MALE: Of course I will -- going to vote.

AMANPOUR: While Sunnis rejected the referendum and boycotted last January's elections for a transitional government, people like Munjad al-Nayib (ph) now say they must have a voice in a parliament that, so far, has been dominated by their rivals, the Shias.

UNIDENTIFIED MALE: Because I want to make some balance, actually.

AMANPOUR (on camera): Political posters are plastered all over the walls and even on the concrete security barriers. According to a new poll, three quarters of Iraqis say they believe this election will produce a stable government and that they expect improvement over the next year.

But, by far, their biggest concern is security in the country and the growing divide between Sunni and Shiites.

(voice-over): For instance, that "TIME" magazine poll of 1,700 Iraqis says only 29 percent of Sunnis think things are getting better, and many are afraid of a recent spate of sectarian killing by Shiite militias.

UNIDENTIFIED MALE: Not always come in the -- in the -- in the TV. But we know it. We heard about it. They are killing people.

AMANPOUR: Munjad (ph) and his wife, Amira (ph), despair of the Sunni insurgency, too. The Pentagon says a staggering 26,000 Iraqis have been killed and wounded in the last two years alone.

"Democracy, is this chaos and killing?" asks Amira (ph). "Is this the democracy Bush promised us?"

And what about the promise to rebuild Iraq? Electricity remains below pre-war levels. Oil production has fallen. And reconstruction money is running out.

UNIDENTIFIED MALE: When Saddam gone, everyone say that's OK. This is the life, and they can -- will bring us a new future. And here we are, two years.

AMANPOUR: So, as they prepare to vote for the first permanent post-Saddam government, Iraqis, like the al-Nayib (ph) family, resort to what they know best.

UNIDENTIFIED MALE: It's very hard, actually, to imagine what will happen. But we hope and we pray.

AMANPOUR: Christiane Amanpour CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Well, spider hole to court -- it's been two years since the capture of Saddam Hussein. This is how the world first saw the once mighty Iraqi dictator in custody, dirty and disheveled, after months in hiding.

Well, the images stunned Iraqis used to seeing Hussein in power and in control. But, two years later, he's returning to his old ways. He's been defiant in court during his trial, refusing to appear during the last session.

And, by the way, Hussein and his seven co-defendants are not eligible to vote in Thursday's election. Only prisoners who haven't been charged with a crime, detainees being held for questioning, for example, can cast a ballot.

A quarter-point increase -- as expected, the Federal Reserve hiked short-term interest rates again today to four-and-a-quarter percent. That's the highest it's been in more than four years. The move is fueling speculation that a year-and-a-half rate-rise campaign could be winding down.

So, do your holiday plans include a cruise? If so, listen up. Issues of crime and security aboard some cruise ships are getting attention today on Capitol Hill. And the baffling disappearance of several passengers this year only heightens the concern.

Our Deborah Feyerick investigates.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice over): When Royal Caribbean's jewel of the sea returned to south Florida Sunday, 59- year-old Jill Begora was no longer on board. She had vanished without a trace the day before, while vacationing with her husband.

Another mystery disappearance, George Smith -- five months ago, he was honeymooning, also on a Royal Caribbean cruise ship.

MAUREEN SMITH, SON DISAPPEARED FROM CRUISE SHIP: We have lived a nightmare for the last five months. My son boarded a Royal Caribbean ship for his honeymoon, and he never got off, and we want to know why.

FEYERICK: His family believes he was murdered. Royal Caribbean tells CNN, "We do not know what happened to George Smith, only that he tragically disappeared from a cruise."

The Smith family said they're suing Royal Caribbean.

BREE SMITH, BROTHER DISAPPEARED FROM CRUISE SHIP: We want to force Royal Caribbean into accountability.

FEYERICK: The Smiths are also asking Congress for tough new laws, hoping to stop what happened to them from happening again, but it does happen more often than you might think.

Chris Caldwell was with his fiance, enjoying the final night of their cruise, when he vanished -- his sister, Shannon, still in shock.

(on-camera): Is it crazy for you that -- that here is somebody who is so full of life and now he just disappeared; he just vanished, and there's no answers?

SHANNON NOWLAN, BROTHER DISAPPEARED FROM CRUISE SHIP: There's no answers. And, you know, it's really amazing. FEYERICK (voice over): The trade group that represents major cruise lines says 10 to 12 people have gone overboard in the last year-and-a-half.

MICHAEL CRYE, INTERNATIONAL COUNCIL OF CRUISE LINES: I think you need to keep this in perspective. Ten to 12 people out of maybe 15 million who cruised in that same time frame is something less than one person goes missing for every million people.

FEYERICK: But for Shannon and others going through the same thing, that's not the point.

NOWLAN: That's not very high statistically. But we're not talking about cattle here. We're talking about my brother. We're talking about somebody's sister. We're talking about somebody's mom and dad, niece, nephew, uncle, aunt.

FEYERICK: No one saw Chris Caldwell fall overboard. And investigators have few clues. Part of the reason? No surveillance cameras monitor the railings. Cruise ships aren't required by law to have them.

CRYE: I can tell you that it would be -- require an investment of literally millions of dollars to have those types of security cameras installed and monitored. And is it a significant enough problem to justify that kind of an expense?

FEYERICK: The cruise industry is a $25 billion business. Lawyer James Walker says some of that money should be spent on cameras to alert the crew when someone falls overboard. And his concerns go further than just surveillance.

JAMES WALKER, MARITIME ATTORNEY: They don't warn the public. They don't want the public to know that there are risks in going on a cruise, because, of course, they're in the business of selling dream vacations.

CRYE: The record of the cruise industry is one of the best in the -- in the entire world. It is the safest form of transportation that there is in -- in the -- in the United States.

FEYERICK: Yet, when people do vanish in or near U.S. waters, search-and-rescue teams are called to help.

(on-camera): When you're doing 14 miles, are the chances pretty good you're going to find somebody or does it really depend?

LIEUTENANT KIM GUEDRY, U.S. COAST GUARD: It's really dependent on the time that we receive the report, until the time we start searching, given that information.

FEYERICK (voice over): Fourteen miles, remember, that's how far Chris Caldwell was from shore when he vanished. It took hours to search the ship, then notify the Coast Guard.

NOWLAN: On Saturday evening, the -- the Coast Guard called me and told me that they were calling off the search and that, basically, that no one could have survived as long as they had been looking in the water, so that he was presumed dead at that point.

FEYERICK: So, what happened to Chris Caldwell? A bartender who spoke to authorities said Caldwell was in the casino, acting loud and drunk. That description has haunted Shannon and her family.

NOWLAN: If a bartender reported to someone that he was belligerent and very, you know, heavily drinking, then why didn't they escort him back to his room?

FEYERICK: That begs the question, who is ultimately responsible when someone is lost at sea?

CRYE: You can't treat adults as children. You have to give them the benefit of the doubt. You cannot tell them what to do and guard against any eventuality. So, otherwise, you would be taking away from the -- the experience of the cruise itself.

FEYERICK: When her brother disappeared, Shannon was eight months pregnant.

(on camera): He knew you were having this baby and he never got a chance to meet that baby.

NOWLAN: That's really hard, because she is the most amazing thing that has ever happened to me, and I would really like to share that with him.

FEYERICK (voice-over): A small number lost at sea, but a number, to those who love them, no less significant.

Deborah Feyerick, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Let's go straight to Tony Harris in the newsroom, a story we have been following all day, the condition of the former...

HARRIS: That's right.

PHILLIPS: ... President Gerald Ford.

HARRIS: That's right, Kyra. It is a story of the day. We have been following it since 11:00 here Eastern time, about 8:00 a.m. on the West Coast.

And that's where we're going to go right now.

Kakie Urch is an editor with "The Desert Sun" newspaper in Palm Springs, California.

Kakie, thanks for taking the time to talk to us.

Like I just mentioned, we started getting word about 11:00 Eastern time. Were you getting any indications before that, earlier than that, that the former president was, in fact, in the hospital?

KAKIE URCH, EDITOR, "THE DESERT SUN": Well, we had heard for about a week that he wasn't feeling well.

We got some word a little bit earlier than you did. About 7:30, we were -- were hearing reports that were then confirmed by his chief of staff, that he had been admitted late last night, late Monday.

HARRIS: And, Kakie, what have you been hearing in terms of the condition, what he's been suffering from? What -- what has his health been like recently?

URCH: Well, his health -- his health has been -- been fine. But he's an older man. And, so, this time, he has a horrible cold. And it's not going away.

But his office is continually stressing -- they have issued a new statement that says it's -- it's really something routine. And, instead of going home tomorrow, he's actually going to be able to go home today, Tuesday.

HARRIS: Oh -- oh, really? OK.

And -- and you're right. He -- he's 92 years old. And I have to ask you, the most recent episodes we have heard of any ill health for the former president, outside of this cold, was I guess the -- the mild stroke in 2000.

URCH: That's right.

HARRIS: And, then, there was a dizzy spell, is -- is that correct, while he was playing golf in 2003?

URCH: That's right. In May of 2003, he was hospitalized at Eisenhower Medical Center.

He was playing golf in a weather that was about 96 degrees, which is normal for here. He has -- he has cut back on his golf. But I want to point out that he's been very active. This past January, he presented the trophy at the Bob Hope Chrysler Classic tournament that he plays in. And, last Sunday, he was in church.

HARRIS: Kakie, I want you to -- to make that point again, if you would, because I think a lot of folks think of Gerald Ford -- and we know that he was made fun of and made to appear kind of klutzy in those skits by Chevy Chase during the "Saturday Night Live" days. But this a man who has been an athlete, has been very active through all of his life.

URCH: Right.

And he and his wife, Betty Ford, have been residents here in the Coachella Valley and Rancho Mirage-Palm Springs area since 1977. They are very active here. And -- and no one here thinks of -- of those pratfall jokes.

HARRIS: Yes.

URCH: They think of Gerald Ford the humanitarian, Gerald Ford and Betty Ford the philanthropists.

And, just recently, he awarded his wife the Gerald R. Ford medal for distinguished public service back in July. It was an event, a gala event attended by Vice President Dick Cheney and former Secretary of State James Baker.

HARRIS: And, Kakie, once again, what's the late in terms of when he's expected to be released from the hospital?

URCH: His chief of staff, Penny Circle, is saying some time Tuesday. And she is stressing that this is really a routine -- a routine trip to the hospital for an older man to check out what is going on with a horrible cold.

HARRIS: Sure.

Tests that are scheduled each December, and, this time around, he just has a horrible cold.

URCH: That's right. And that is -- that is true to form. We have -- we have covered his admission for those routine tests in past years.

HARRIS: OK, Kakie Urch, thanks for taking the time to talk to us. We appreciate it.

URCH: Thank you, Tony.

HARRIS: OK -- Kyra, back to you.

PHILLIPS: All right, Tony, thank you so much.

Well, straight ahead, honoring the fallen and protecting their long journey home. Is the U.S. military doing enough to bring our war dead home with the honor and dignity that they deserve? The parents of one fallen Marine shares their thoughts with me coming up next.

(COMMERCIAL BREAK)

PHILLIPS: Well it's a difficult journey that no parent wants their child to make.

Twenty-one-year-old Army Specialist Matthew Holley packed up his bags and courage and went from the United States to the battlefields in Iraq. But, last month, young Matthew was killed in the line of duty. Then, the most difficult of the journey for his parents began. What they went through getting their son's body back home has inspired them to speak out and ask for some changes.

Matthew's parents, John and Stacey Holley, join me now here in Atlanta.

What a pleasure to have you both here. STACEY HOLLEY, MOTHER OF KILLED U.S. SOLDIER: Thank you.

PHILLIPS: I'm sorry it's the circumstances. But, you know, you have an incredible message to get out.

And I -- I want to get to that aspect in a moment. But, first, I just want to talk about Matthew. What an amazing young man. My gosh. Tell me about him.

S. HOLLEY: Special, talented, lived life to the fullest extent in 21 years, a very talented artist, very much into the martial arts, competed at the national level, three-time AAU national champion.

PHILLIPS: He had a black belt, didn't he?

S. HOLLEY: He had a black -- he competed at the black belt level at the 18-year-old championship. He was a brown belt.

PHILLIPS: OK, close.

(CROSSTALK)

PHILLIPS: Very, very close.

S. HOLLEY: Very close.

JOHN HOLLEY, FATHER OF KILLED U.S. SOLDIER: Well, his -- his senses always made him compete at a level higher than what he actually was.

S. HOLLEY: Exactly.

J. HOLLEY: But that's just how he -- he...

PHILLIPS: So, he always set his standards high?

J. HOLLEY: Oh, yes.

S. HOLLEY: Exactly.

(LAUGHTER)

J. HOLLEY: Exactly.

S. HOLLEY: Exactly.

J. HOLLEY: Exactly.

He -- you know, he was a -- he was a great kid, an above-average kid in a lot of respects, but he was still just a regular kid in -- in -- in other ways, too. I mean...

S. HOLLEY: Had a very big, big heart.

J. HOLLEY: Big heart.

PHILLIPS: And let's talk about the artist side to Matthew.

I was reading about the different types of -- of work that he did. He really -- I mean, when you looked at his artwork, you saw a lot of what was going on in his head and in his heart, yes?

PHILLIPS: Let -- let -- let's -- this -- this one piece I know we are -- we're about to bring up, the -- the "Ten-Gu." Tell me about the piece.

J. HOLLEY: Oh, that was one of -- these two, well, there's going to be another one.

But this one is one of the later things he started getting into. We got him a scanner for Christmas. So, he was able to doing his sketches, scanning them into the computer, and then start manipulating them, cut, paste, and color and so forth. But he had the patience of Job, because I used to go in his room. And he would sit there and, I mean, for hours with his mouse. I mean, nothing is real sophisticated.

(LAUGHTER)

J. HOLLEY: And he would just sit there and move that thing, you know, a little at a time. And, you know, that's what he did from the time he was, like, 4 years old. It was -- if he wasn't doing Tae Kwon Do or karate, it was drawing.

PHILLIPS: And look at how he -- he brought both in here. And this is the battle between good and evil, yes?

J. HOLLEY: Basically.

S. HOLLEY: Yes.

J. HOLLEY: Yes.

S. HOLLEY: Yes.

J. HOLLEY: That was something that one of his -- probably his -- his last, you know, things he did, about a year-and-a-half or so ago or, no, maybe two-and-a-half years ago, before he went in the military. So, yes.

PHILLIPS: So, he takes this passion for art and, obviously, martial arts and -- and understanding good and evil. I mean, it all makes sense to why he would want to be a soldier and why he would want to go to overseas.

And he had even written to you and said he needed crayons for the Iraqi kids?

S. HOLLEY: Yes.

PHILLIPS: Tell me about that, Stacey.

S. HOLLEY: We had -- we had spoken to his girlfriend, actually. And she had told us. And then we had a follow-up discussion the Thursday before Matthew's incident and talked to him about 1:30 in the morning, Pacific Standard Time. And he had told us, yes, send crayons, because I want to teach the kids how to draw.

And he -- that -- that was Matt. I mean, he just had such a big heart for young kids. And whether it was in the dojo or it was teaching children how to draw, he would just take them aside and had just an extreme amount of patience to teach them these different talents.

PHILLIPS: He had been there six weeks, right?

S. HOLLEY: Yes.

PHILLIPS: And did you get the phone call or did you get the visit at the door?

S. HOLLEY: We got the visit at the door. And John was home. I was at work.

J. HOLLEY: Yes.

It was just -- you know, just like the movies, you know, two gentlemen. And I was just talking. I had a gentlemen there working on our computers. And I was just -- everybody came to my house, heard about my son. And, in fact, I had some of his drawings in my hand when the doorbell rang and -- sorry.

PHILLIPS: No. It's all right. You're both Army, so you know exactly what was -- what was happening.

J. HOLLEY: But, yes. So, I opened the door. And, of course, I knew slightly beforehand that -- what it was, because we have a little window in the door. And, so, that was very -- it was the hardest moment of my life.

PHILLIPS: Did you want him to join the Army, Stacey?

S. HOLLEY: We -- we had discussed options. Matthew had discussed the military as one of his options.

We had a desire that he pick another service, but he chose to follow in the footsteps of his parents, as he said, and his uncles.

PHILLIPS: Both were Army. I should make that clear.

S. HOLLEY: Several uncles and -- were also in the Army.

And he felt that he wanted to do something that would serve a cause greater than himself. And he wanted to help people. And being a combat medic, to him, would allow him to do those things.

And it made John and I very, very nervous. We -- and we discussed that with him. But, in the end, we also knew that he was becoming a man, and he wanted to make decisions on his own. And, so, we, you know, counseled him on what we thought would be appropriate. But, ultimately, we left it up to him to make his final decision.

PHILLIPS: Well, he did it. He went 101st Airborne.

And didn't he say to you, Dad, we can put our jump wings together?

S. HOLLEY: Yes.

J. HOLLEY: Yes.

S. HOLLEY: Exactly. Exactly.

J. HOLLEY: That was a very proud moment, when he called me and told me that. So, yes.

PHILLIPS: You got the word. And, then, I guess the two of you thought, OK, we have got to go through the process here, take care of what we need to take care of. He's going to be flown home with the flag draped across the coffin, arrive at Dover Air Force Base, right?

J. HOLLEY: Right.

PHILLIPS: What happened after that?

J. HOLLEY: Well, we were at the Glen Abbey Memorial Park, making the arrangements for where he was going to be finally laid to rest.

And, so, they were telling us that, OK, he's going to be coming in, because it was kind of up in the air, when he was going to be received in San Diego. And -- and, so, the -- they were explaining it to us, how the procedure was going to work.

And, well, first off, he says, they are coming in on a civilian aircraft, which kind of made me a little, you know, curious. And, then, I said, OK, so then what? And they say, well, then, the baggage handlers will unload all the baggage from the aircraft, and then they will bring Matthew down and they will load him on to one of those little carts and they will wheel him over to the freight depot and...

(CROSSTALK)

PHILLIPS: And you're thinking, what the hell is my son doing in the baggage?

J. HOLLEY: Yes.

S. HOLLEY: Exactly.

J. HOLLEY: Exactly.

PHILLIPS: Yes.

S. HOLLEY: That's exactly it.

PHILLIPS: I don't blame you. J. HOLLEY: And, so, I kind of, you know, immediately got on the phone to our casualty assistance officer, who is an -- an excellent human being, not only a first-class soldier, but an excellent human being, and let him -- let my feelings be known to him that that wasn't going to happen.

And no offense to the baggage handlers, but I said, you know, I'm not going to let a bunch of half-shaven baggage handlers, you know, handling my son like that.

(CROSSTALK)

PHILLIPS: ... your son.

J. HOLLEY: So, I -- he got on the horn, I guess, to anybody and everybody. And, throughout the day -- this took many hours -- we got a little update, OK, now we're going to fly an honor guard out from Fort Campbell, and they will be here, you know, in plenty of time to receive Matt.

And, then, oh, no, that flight was delayed. So, now they are going to come in after Matt arrives. And the airline is not going to wait for them to get there. And I'm -- I'm just blowing a fuse over that. So, finally, I got a call from a gentleman in Barbara Boxer's office. And he started talking to me and asked me questions.

And one of the questions he asked was, will you accept anything less than what you're requesting? I said no.

And he said, well, I will -- I will make some phone calls, see what we can do. And, then, he said, well, the first thing you need to do is call the FAA. The FAA control all the airlines, controls the airport, controls everything. So, you start there. And then, you know, that will probably get things accomplished.

Well, he goes, OK, yes, that's a good idea. So, it wasn't very long after that I got a call. Everything is handled. You know, TSA got involved. Homeland Security got involved.

PHILLIPS: Wow.

The Harbor Police got involved. The whole -- you know, FAA told the airline they are not going to move. So, it all happened the way we expected it to. We got to go out on to the tarmac. And Matthew was already there.

PHILLIPS: So, you were able to go and meet the casket.

S. HOLLEY: And properly welcome him home.

J. HOLLEY: Right.

PHILLIPS: And how did you welcome him home, Stacey?

S. HOLLEY: Well, it was an emotional time. It -- a lot of tears. Matt is our only son. And...

J. HOLLEY: Yes. So, he -- you know, he got the honor that he deserved for what he did.

I mean, he was a -- not only a -- a great soldier. You know, of course, he -- you know, he has issues, just like everybody else with their job. But, all in all, he went and did the job he had to do. And he was also -- I don't know if we mentioned three-time AAU national karate champion.

PHILLIPS: Oh, yes. We have the picture, too...

J. HOLLEY: OK.

PHILLIPS: ... of him busting the board there in his...

J. HOLLEY: Yes.

PHILLIPS: ... brown belt.

(LAUGHTER)

J. HOLLEY: But he was just a very.

You know, that's why I think he chose the job he did, because combat medic is a special person in -- in the infantry. And they call them doc. It doesn't matter if you're a private or a captain or a sergeant. You're a doc, you know, because they depend on you to fix them if they get injured.

PHILLIPS: Well, and -- and all of us depend on our men and women. Whether you agree with the war or not...

J. HOLLEY: Right.

PHILLIPS: ... we depend on them to -- to do their job. And we owe it to them to bring them home...

S. HOLLEY: Exactly.

PHILLIPS: ... sophisticatedly, with dignity and honor.

And we have learned a lot about this process...

J. HOLLEY: Right.

PHILLIPS: ... that maybe it should be changed, that -- that those are the questions that are out there now...

S. HOLLEY: Yes.

PHILLIPS: ... that your son was brought back to -- to Dover.

J. HOLLEY: Right.

PHILLIPS: Hopefully with the flag on the coffin.

J. HOLLEY: Right. Right.

(CROSSTALK)

PHILLIPS: But it's the issue of our men and women being brought back to the final resting place.

J. HOLLEY: Correct.

PHILLIPS: And maybe that shouldn't take place on commercial airlines...

J. HOLLEY: No.

PHILLIPS: ... or at least done so in a more respectful way, is what you're saying...

(CROSSTALK)

S. HOLLEY: Yes.

PHILLIPS: ... not just thrown into the cargo...

J. HOLLEY: In my...

(CROSSTALK)

PHILLIPS: ... with the luggage.

J. HOLLEY: In my opinion, if I was running the show, it would be military handles military.

PHILLIPS: Right.

J. HOLLEY: It should be flown from Dover to the nearest military base of their home of record or where they are going to be laid to rest, given the full military honors, transported with an honor guard to where they are going to be laid to rest, and then given more honors there. And then it should be up to the family, I think, after that, if they want to proceed with a full-on military funeral, which is what we had for Matthew, or if they want to have something more private, you know?

But at least the soldier deserves to have that honor of being brought to his home of record. And -- and, then, from there, you know, they can -- they can do as the family wishes. But we wanted Matt to have, you know, everything he was due. And money was not an issue.

PHILLIPS: Of course.

(LAUGHTER)

PHILLIPS: Of course.

J. HOLLEY: You know?

PHILLIPS: You know, everyone knows they will do whatever it takes to make sure that your son or daughter, your husband or wife, or whomever it is...

S. HOLLEY: Exactly.

PHILLIPS: ... is brought home with -- with full respect.

(CROSSTALK)

J. HOLLEY: And I wanted to say, too, that we could have just said nothing about this. We could have kept quiet. And it's like, OK, you know, we took care of our son.

But...

PHILLIPS: But what about everybody else that may be...

J. HOLLEY: Exactly.

PHILLIPS: ... going through the same thing...

S. HOLLEY: Exactly.

PHILLIPS: ... or could go through the same thing?

J. HOLLEY: That's what -- that's why we are here. We want to make sure that it doesn't happen again.

And we have been in contact with -- Duncan Hunter actually called me. And he said he was going to jump on it and see what he could do or find out to change it. And...

PHILLIPS: Have you heard from the Pentagon? Have they responded to you?

J. HOLLEY: No.

S. HOLLEY: Not at this point.

PHILLIPS: OK.

S. HOLLEY: But we're -- we are working through the congressman's channels and -- and things of that sort to -- to facilitate that discussion.

You know, at the end of the day, as -- as I

(INSERT 1500) PHILLIPS: Have you heard from the Pentagon? have they responded to you?

J. HOLLEY: No.

S. HOLLEY: Not at this point. But we're working through the congressmen's channels and things of that sort to facilitate that discussion. You know, at the end of the day, as I said before, many parents at a point that you're going through the types of emotions you go through in grieving for the loved ones -- and it's not parents, it's spouses, it's other loved ones who are dealing with this type of emotion -- are not necessarily privy, perhaps, to what they are allowed.

In John's and my case, because we do have military experience, we have a long history of it in our family. We felt it necessary to speak up and say, you know, you do have a choice. Your son, your daughter, your spouse, these people should be coming home in full dignity and full honor all the way to their home of record.

PHILLIPS: Well, we believe in why you are standing up. And that's why we wanted to do this interview and do this story. And I also want to give you a chance, too, to talk about the fund that you created in honor of your son. We put together the 800 number, Matthew John Holley Memorial Scholarship Fund. You can donate to this number. Tell me what you hope the money will go toward, the type of scholarships the money will go toward?

S. HOLLEY: There's two loves Matthew had. We've talked about his graphic arts and the martial arts. And in both areas, we will set up criteria that will be reviewed on an annual basis. And one child will be allotted a scholarship moneys towards either the martial arts and/or a graphic arts scholarship. So there's two different options there.

J. HOLLEY: We're going to try to fund both, because his dojo is one of the top dojos in the nation and they send children to Japan to compete.

PHILLIPS: To compete. Right, I read about that. Wow.

J. HOLLEY: So they assistance.

PHILLIPS: And it's a great sense of discipline. It's great for the kids. It did a lot for your son.

J. HOLLEY: Yes, it did.

S. HOLLEY: It did.

PHILLIPS: Well, he died a hero, that is for sure.

S. HOLLEY: Thank you.

PHILLIPS: Well, I thank you for your time. We lift Matthew up. And keep us posted on what happens, OK, with regard -- and we'll follow up on this, as well, see if any changes are made. And we'll continue to also plug the fund and raise money.

J. HOLLEY: Thank you very much.

PHILLIPS: Thanks so much.

S. HOLLEY: Thanks.

PHILLIPS: Well, in response to criticism over what happened with Matthew Holley's remains, the Army issued this statement saying that "the Army ensures that the remains of the fallen are treated with dignity and respect at every step of their journey."

So we took a closer look at Army regulations on this subject. And here's what we found.

(BEGIN VIDEOTAPE)

PHILLIPS (voice-over): All military remains are sent to the military mortuary at Dover Air Force Base in Delaware. From there, the family decides where the remains will be sent, but the military decides how they will be transported. If the destination is close by, the remains are driven. If not, the Army often uses commercial flights. This, they say, is because it's usually faster than waiting for military planes.

When a commercial airline is used, there are clear guidelines on how the casket should be treated. Under military policy, each casket will be escorted to its final destination. A military escort is usually selected by the Army,but the family can make a specific request to have someone else act as the escort.

In most cases, the casket travels in a specialized case, designed to protect it from damage. During the flight, the remains must be positioned with the head toward the nose of the plane. The escort generally carries a flag during the flight and then that flag is draped over the case upon arrival and during transportation to the funeral home. The escort always accompanies the remains to the final destination.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

HARRIS: I'm Tony Harris in the CNN newsroom.

And as you know, we've been hustling to get you new information on the condition of former president Gerald Ford, 92 years old, as you know. We shot our Dan Simon out of a cannon to get to the Eisenhower Medical Center as soon as we found out about the fact the former president had been hospitalized.

Dan is at the center, the Eisenhower Medical Center, in Rancho Mirage, California. Dan, good to see you, and what can you tell us about the former president?

DAN SIMON, CNN CORRESPONDENT: Well, Tony, according to his spokesperson, he basically had a bad cold and came to the hospital for a series of tests. He lives in the area, lives in Rancho Mirage, California. And we're told that possibly as early as tomorrow, he could be released. So from the sounds of it, doesn't sound too serious.

But, of course, he is 92 years old. He is the nation's oldest living president. So you could assume any time something happens that we're going to take it very seriously. And here we are here at the hospital, Tony.

HARRIS: Well, Dan, just a quick -- a couple of quick questions. Do we have any idea of when the former president was admitted to the hospital?

SIMON: Yes. He came here last night, we're told. And, again, we're not sure, in terms of what kind of tests are taking place, but they're going on as we speak, according to some folks here at the hospital. We don't know if there are some family members here. But, again, possibly as early as tomorrow, he could be released, Tony.

HARRIS: And other recent sort of health problems: a mild stroke during the 2000 Republican National Convention, dizzy spells while playing golf in 2003. And to your knowledge -- and I know you're just arriving on the scene -- had he been in relatively good health up until, say, the last week or so?

SIMON: Yes, when I called his office just a short time ago, I spoke to a receptionist. And she told me that he, you know, is having still -- still has an active lifestyle. I asked if he still plays golf. She wasn't quite sure about that. But you're right, the year 2003, he did suffer a mild stroke during the Republican National Convention, but bounced back quickly and gave speeches and played golf.

HARRIS: Oh, absolutely. OK. CNN's Dan Simon. Dan, thanks for the hustle getting down there to Rancho Mirage, California, for us. We appreciate it.

We'll take a break. More LIVE FROM right after this.

(COMMERCIAL BREAK)

PHILLIPS: The Royal Caribbean Cruise Line says it was an accident, but George Smith's parents say they suspect foul play in the disappearance of their son during a Mediterranean cruise. They are planning to sue.

The Connecticut family also came to Capitol Hill to attend congressional hearings about the cruise industry. George Smith's sister, Bree, spoke to reporters.

(BEGIN VIDEO CLIP)

BREE SMITH, MISSING MAN'S SISTER: We have been in silence for the past five and a half months for two different reasons. The first is that we wanted to mourn in private. We did not want to share our private views about my brother's loss at that time with the media.

Additionally we were respecting the FBI's wishes. As you know the FBI is conducting a very active investigation into the suspicious circumstances surrounding my brother's death.

At the request of the FBI we have kept our silence. However, now with the hearing before us today, we think it's our time to come forward to speak with the press.

I'd like to discuss what our goals in the hearing today would be. Tragedies like my brother's and my family's should not be treated as business as usual. My brother is not a mere insurance liability.

He was very loved, as I mentioned, and it's not a matter of dollars and cents. It's a matter of protecting U.S. citizens that are aboard cruise ships whether they are traveling within the United States or without the United States. We'd like to educate the people and Congress on the dangers of cruising.

(END VIDEO CLIP)

PHILLIPS: And right now those congressional hearings are underway to examine international maritime security. One major question, who has jurisdiction over some of the cruise ships, especially if they are in international waters.

Representatives from the Department of Defense, U.S. Coast Guard and the Federal Bureau of Investigation and the cruise lines have been invited to testify.

You may have heard a lot this week, and for weeks before, about the life and death of Stanley Tookie Williams. It seemed to generate conflict and passion, anger and anguish. And for a quadruple murderer turned anti-gang crusader and children's book author, not even execution went by the book.

Steve Lopez witnessed Williams' the final moments as a member of the media pool at San Quentin prison. He joins us now from his news room at the "Los Angeles Times." Appreciate you being with me, Steve.

STEVE LOPEZ, "LOS ANGELES TIMES": Thanks for having me.

PHILLIPS: I read what you wrote and it was short, sweet, to the point. I want to get to that in just a moment. But first of all, give me a feel for what it was like, what you witnessed, what was probably the most memorable, say, moment for you as you spent time sort of waiting up to the point and after ward.

LOPEZ: Well, it was quite a bit of waiting. It's hours and hours for the witnesses. You're finally ushered into this death chamber and it's kind of like a little amphitheater. It's a little auditorium and there's a stage.

The stage is this glass enclosed chamber and here comes Tookie Williams. He's led by guards. He showed no resistance. He got up on to this table that looks like a converted dentist chair and they laid him out. Strapped him down.

There were a few points of drama other than just the moment of his entering the death chamber. He kept lifting his head up and looking around at all of the people in the room, in particular looked at some of his supporters and a couple them appeared to be saying, we love you, god bless you. There were clenched fist salutes.

At one point he looked over at the media for a long look. There were those things. The next point of drama was that they appeared to have trouble getting a vein tapped. It took forever to get into the vein on his left arm so that they could begin the lethal injection.

He at one point seemed to be looking at them in wonderment. Come on, aren't you guys qualified to do that properly? So there was all of that, and then in the end, once he had died and we were on our way out, three -- it looked like three of his supporters, yelled out in unison, "The State of California just killed an innocent man."

PHILLIPS: I want to read part of what you wrote, talking about his execution. You're saying, "In a nation that preaches godly virtue to the world while resisting a global march away from the medieval practice of capital punishment. I would have had no problem leaving Williams locked up with his regrets and haunted by his deeds for the rest of his natural life.

I watched a man die today, killed by the state of California, with institutional resolve and wondered what we gained."

How is this -- first of all is this the first execution you have watched?

LOPEZ: It is.

PHILLIPS: How has that changed you? Has it changed you, number one, as a journalist, number two, personally?

LOPEZ: Well, you know, it was on a lark I tossed my name into the ring. I didn't expect to be selected. Once I was I didn't give it much though. People kept asking me what my strategy was for handling this. My strategy was to not prepare and not deal with it.

It's a bit of a shock when you get into the death chamber. Here is. He's taking his last walk. There's something about the lethal injection that makes the whole thing extra creepy and, you know, it's allegedly for the humanitarian concern about the man who is to be executed.

I wonder if maybe it's more for us. It's easier to be in denial about the reality of the death penalty. We have in this country, in the past what is it 10 or 15 years, 122 death row inmate whose have been exonerated or granted new hearings. We have made mistakes in the past. We're going to continue to make them.

I don't know what extra justice or satisfaction anybody gets from executing a man, rather than locking him up with his regrets, just haunted by his deeds for the rest of his natural life. PHILLIPS: It's interesting you bring up the reality of the death penalty that it really hit home for you. Also, Steve, I think even as journalist living in Los Angeles we can't forget the reality of the Crips, as well.

LOPEZ: He's a bad guy. I think that those who oppose the death penalty keep picking the wrong guys to put on the poster. I think Mumia Abu Jamal killed the cop; I don't have any question about it. I think Tookie killed these people. I don't have any question about that.

It might be better to fight the death penalty by finding out who is number 123 who is going to be exonerated on death row. Tookie did some bad things. I think he didn't really earn this redemption his supporters talked about.

His final words should have called for the dismantling of the Crips. A lot of weeping mothers from something that he unleashed, and I don't hold him responsible for all of that, but I just don't think he owned up to it in the end.

But why do we need to put him to death at the hands of the state? Is that something we want to pay our government to do? In my case the answer is no.

PHILLIPS: Steve Lopez, "Los Angeles Times", I enjoy reading your work, Steve. Thanks for your time.

Stay with us, LIVE FROM has all the news you need this afternoon. We have more for you.

(COMMERCIAL BREAK)

PHILLIPS: Sibila Vargas, Golden Globes, she was probably in a hot dress. Or, no, wait a minute. It was too early in the morning. Sorry, Sibila.

SIBILA VARGAS, CNN ENTERTAINMENT CORRESPONDENT: Stop that. Oh it was great this morning, though. Going into nominations there was a lot of talk about "Kong," "Munich," and "Memoirs of a Geisha." But when the word came down it was an unusual western that lassoed the most nominations.

(BEGIN VIDEOTAPE)

MARK WAHLBERG, ACTOR: Best nomination, drama, "Brokeback Mountain."

VARGAS (voice-over): "Brokeback Mountain" scaled the heights, coming away with leading seven Golden Globe nominations. The movie about two male cowboys who fall in love is up for best picture drama as well as best director for Ang Lee. Heath Ledger was nominated for his performance in the film, but co-star Jake Gyllenhaal was passed over.

UNIDENTIFIED FEMALE: I was doing just fine until you showed up. VARGAS: Woody Allen's "Match Point" will compete with "Brokeback Mountain" in the best picture drama category. Also in contention, "The Constant Gardener," "A History of Violence," and George Clooney's "Good Night and Good Luck."

UNIDENTIFIED MALE: We cannot escape responsibility for the results.

VARGAS: It was quite a day for Clooney. The Hollywood Foreign Press Association nominated him for four Golden Globes, three for directing, producing and co-writing "Good Night and Good Luck." His fourth came from his co-starring work in the political drama "Syriana."

GEORGE CLOONEY, MULTIPLE NOMINEE: You know, there will be more people that will see this because of these nominations and that's, to us, important.

UNIDENTIFIED MALE: Kiss it. Kiss it. It's the mother load.

VARGAS: In the best picture musical or comedy race, Mel Brooks' "The Producers" led the way. It will compete with the Johnny Cash biopic "Walk the Line," "Price and Prejudice," "Mrs. Henderson Presents," and "The Squid and the Whale."

UNIDENTIFIED MALE: My father told me you called him.

VARGAS: "The Squid and the Whale" also earned acting nominations for Laura Linney and Jeff Daniels.

JEFF DANIELS, ACTOR: This is a good time, so I just -- you know, I'm just kind of enjoying the ride.

VARGAS (on camera): In some ways, some of these nominations were surprising not for what was recognized but what was overlooked. Some of Hollywood's most touted films missed the cut.

(voice-over): The epic "King Kong" failed to earn a best picture drama nod, although director Peter Jackson was recognized. It was the same sorry with "Munich." Steven Spielberg's film was overlooked for best drama, but it did earn him a directing nomination. "Memoirs of a Geisha" got shut out of the best pictures drama race. Also out of the picture? "Rent" in the best picture, musical or comedy category.

MARCIA CROSS, ACTRESS: You're about to find out.

VARGAS: On the TV side, the biggest story might have been in the comedy acting category. All four leading actresses from "Desperate Housewives" were nominated. Last year, Eva Longoria missed the cut. Felicity Huffman earned a nomination for that show and for her work in the film "Transamerica." Steve Carrell helped make the announcements, then he heard his name called out as a nominee for best actor in a sitcom for his role on "The Office."

STEVE CARRELL, ACTOR: It's pretty wild that this is all happening. It's exciting. VARGAS: Carrell and company will learn if they're winners when the Golden Globes are presented on January 16th.

Sibila Vargas, CNN, Beverly Hills, California.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: Well, we hope that you're all having a great Chrismahanukwanzukah today. What? You say you forgot about the all- inclusive grab bag of holiday cheer? How is that possible, especially with a spokesman like this?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Silent Chrismahanukwanzukah, holy Chrismahanukwanzukah. Chrismahanukwanzukah's calm, Chrismahanukwanzukah's bright.

(END VIDEO CLIP)

PHILLIPS: Mark it on your 2006 calendar for next year, OK? December 13th, official Chrismahanukwanzukah day. We're not asking you to spell it, just say it. And if you forgot, it's bad karma. You could get a lump of coal in your fez.

The fed hikes interest rates again, but will it really impact you? CNN's Ali Velshi joins us before the closing bell for a little happy -- you know what I'm saying.

ALI VELSHI, CNN ANCHOR: You know, I'm going to say happy Fed Day, it's easier. This is the day the Federal Reserve changes interest rates. They don't always change interest rates; just the last 13 times they've met they've changed interest rates upward a quarter percent. Now the Fed funds rate stands at 4.25 percent. That's the rate that banks chart each other. It's not really what you're going to get if you're looking for a loan.

Now, a lot of people connect that to mortgages. I just want to show you a quick chart. The Fed started raising rates in June 2004. Back then the rate was one percent. They've gone up a quarter percent each time. That line on the top is mortgage rates. They've not moved the same way.

People think when the Fed increases or decreases rates they pay more or less on their mortgage. You can see that mortgage rates are going up a little bit right now but it's not the same thing. So don't worry too much about your mortgage at the moment. Fed rates are up a quarter percent -- Kyra.

PHILLIPS: Well, we're getting ready for the closing bell. Tomorrow we're going to talk a little online shopping right?

VELSHI: We're going to talk about online shopping and staying safe when you're shopping. (STOCK MARKET REPORT)

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