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Federal Agents Investigate Alabama Church Fires; Terrorists Seeking to Target Cyberspace?; Palestinian President Urges Moderation From Hamas

Aired February 20, 2006 - 14:59   ET

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


BETTY NGUYEN, CNN ANCHOR: Federal agents are examining yet another church fire in rural Alabama. This one in the eastern part of the state on Sunday, follows two fires in Tuscaloosa Friday. Are these latest attacks connected to a string of church fires which have outraged parishioners? Well, investigators are getting ready to brief the public about this at this hour. It's going to happen any minute now and we're going to take you there. But before they do, our Rusty Dornin is here with the latest on the case. So three fires since Friday? Let's run through those.
RUSTY DORNIN, CNN CORRESPONDENT: They all have a religious connection of some kind. There was one on Friday morning at a Methodist church at the University of Alabama in Tuscaloosa. They'd had a candlelight vigil the night before, using a lot of candles on a table with a cloth. The next morning apparently a fire started. There was -- all the people that attended the ceremony, no one was given the duty of putting the candles out.

NGUYEN: Federal agents are examining yet another church fire in rural Alabama. This one in the eastern part of the state on Sunday follows two fires in Tuscaloosa Friday. Are these latest attacks connected to a string of church fires which have outraged parishioners?

Well, investigators are getting ready to brief the public about this at this hour. It's going to happen any minute now. And we are going to take through.

But, before they do, our Rusty Dornin is here with the latest on the case.

So, three fires since Friday. Let's run through those.

RUSTY DORNIN, CNN CORRESPONDENT: They all have sort of -- a religious connection of some kind.

There was one on Friday morning where -- at a Methodist Church at the University of Alabama in Tuscaloosa. They had had a candlelight vigil the night before...

NGUYEN: Oh.

DORNIN: Using a lot of candles on a table with a cloth. The next day -- the next morning, apparently, a fire started. There was -- all the people that attended the ceremony, no one was given the duty of putting the candles out. So, they do think -- they strongly believe maybe that that is accident...

NGUYEN: Maybe have been accidental.

DORNIN: ... accidental.

NGUYEN: OK.

DORNIN: Seventeen hours later, there is a fire in a warehouse in Tuscaloosa. And they -- that caused $1.5 million worth of damage.

NGUYEN: Geez.

DORNIN: And, apparently, Some people were seen around the site of the fire. In fact, someone might have been videotaping it or using their cell phone to take pictures.

They want to talk to that person. They say they are not a suspect, but they want to talk to them.

NGUYEN: But what was in this warehouse?

DORNIN: Apparently, there was a Christian apparel shop.

NGUYEN: OK.

DORNIN: That was the...

NGUYEN: So...

DORNIN: ... connection.

NGUYEN: ... that's the connection.

DORNIN: But that was not damaged at all. It was the back -- actually, the warehouse part that was damaged.

NGUYEN: OK.

DORNIN: Then, on Sunday, up in Glencoe, very remote. This is about 135 miles from Birmingham, at -- as you said, the eastern part of the state.

Apparently, someone threw a Molotov cocktail at a little Church of God, damaging just the outside. It looks just like smoke damage. You can see, it just looks like it scorched the vinyl siding of the church.

NGUYEN: Didn't get inside to the church...

DORNIN: Not at all.

NGUYEN: ... or anything like that?

DORNIN: And that is confirmed arson. That is the only one of the three that's absolutely confirmed arson.

Now, they are going to be giving a press conference at the warehouse in Tuscaloosa just in a few minutes...

NGUYEN: Mmm-hmm.

DORNIN: ... to just talk about some of these things, what they're -- where they're going with it, if there's any links, if they see any links -- all of these fires very different from the other 10 arson fires, because the other arson fires were started at the altar, at the pulpit, that sort of thing.

NGUYEN: Inside the church.

DORNIN: Inside the church.

Also, this church in Glencoe is very remote. And it just doesn't really match their pattern. But they are doing something interesting. They're bringing in the national response team for the ATF. And they're going through the fire at the warehouse.

And they're seeing if there are any, what -- quote -- "parallel leads" to these other 10 fires, just to see. And they're going to -- so, they are going to do that. They're going to put it in the computer, and cross-file it, and see if anything comes up.

NGUYEN: But investigators do have some evidence. Don't they have fingerprints?

DORNIN: They actually have handprints from when -- there was a church in -- Dancy Baptist Church in the western part of the state, where, apparently, after they started the fire, they ran out and tried to push their way out of the front door of the church.

NGUYEN: Because they were trapped inside...

DORNIN: They were trapped inside...

NGUYEN: ... with this fire blazing.

DORNIN: And they tried to get out. They have a handprint, but they won't say whether they were able to really get a fingerprint off it.

NGUYEN: Oh, I see.

DORNIN: Or, perhaps, that person's prints are not in the system. But they -- they haven't come back with anything.

Also, they are -- you know, they are trying to get them to contact them, say...

NGUYEN: Yes, they made an appeal to the people who committed...

DORNIN: And they said...

NGUYEN: ... these crimes.

DORNIN: ... they did get one reply.

(LAUGHTER)

DORNIN: But the reply -- that the -- their e-mail system crashed, and they couldn't get back...

NGUYEN: What?

DORNIN: ... to the person.

And, finally, when they got back to the person, e-mail, it turned out it was somebody just trying to be helpful.

NGUYEN: Oh.

DORNIN: So, they haven't had a lot of success with that.

NGUYEN: Well, hopefully, we will learn more when they have this press conference in Tuscaloosa, just any minute now.

And, when that does happen, we are going to bring it to you live right here on CNN.

Rusty, thank you for that insight. And, of course, we will be talking to you a bit later, too, as well -- Tony.

TONY HARRIS, CNN ANCHOR: Palestinian President Mahmoud Abbas met today with Ismail Haniyeh, the presumptive Palestinian prime minister.

And Palestinian officials say Abbas will give Haniyeh a go-ahead tomorrow to form a new government. Haniyeh belongs to Hamas, the newly-elected power in Palestinian parliament. And Abbas is pressing the group to moderate its stance towards Israel to try to salvage Western aid.

But, as CNN's John Vause reports, Hamas is seeking other funding options.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): Facing a cash crunch and international isolation, Hamas officials have hit the road on a fund-raising tour of the Islamic world -- on this stop in Tehran, a warm welcome from Iranian leaders.

KHALED MASHAAL, HAMAS LEADER IN EXILE (through translator): We are seeking support of Arab and Islamic states, as well as other countries, for our movement, by making such trips.

VAUSE: Foreign aid is the lifeblood of Palestinian Authority. With more than 130,000 workers, it's the largest employer in the West Bank and Gaza. Much of its annual budget of 2 billion U.S. dollars is spent paying wages. Israel has put a freeze on the taxes collected on behalf of the Palestinians, around 50 million U.S. dollars each month. MARK REGEV, SPOKESMAN, ISRAELI FOREIGN MINISTRY (through translator): But no one can assure Israel at the current time that money sent today to the Palestinian treasury won't come back and haunt us, in the form of suicide bombings.

VAUSE: The Palestinian Authority president, Mahmoud Abbas, has warned of a crisis in the making. Even so, he has now met with Ismail Haniyeh, the man Hamas wants to be the next prime minister.

(on camera): Once Hamas officially takes over, the United States and European Union are warning, they will both stop direct-aid payments to the Palestinian Authority, unless the Islamic militants disarm and recognize Israel's right to exist.

(voice-over): That just won't happen, say Hamas officials. And they warn, withholding aid will ultimately backfire.

Many Palestinians, they say, won't blame Hamas for the increased hardships, but, rather Israel and the United States.

John Vause, CNN, Jerusalem.

(END VIDEOTAPE)

NGUYEN: We want to take you live now to Tuscaloosa, Alabama, where federal agents are talking about the latest rash of fires there, and if they are connected with church fires in the area.

(JOINED IN PROGRESS)

UNIDENTIFIED MALE: ... standpoint of the city of Tuscaloosa, again, to have partners of the ATF, State Fire Marshal, to work with our police and our fire department. That's a good sign.

And we -- and, Mr. Cavanaugh, we are glad to have you here.

UNIDENTIFIED MALE: Thank you very much.

UNIDENTIFIED MALE: And -- and I will available at the end of this, answering questions.

A.J. MARTIN, TUSCALOOSA COUNTY, ALABAMA, FIRE CHIEF: Yes. I'm A.J. Martin, fire chief.

I would also like to thank ATF and the State Fire Marshal's Office, whose help has been invaluable to us. Of course, we work together with Chief Swindle folks all the time.

And we had multiple units here Friday night. And we have actually had control of this scene, along with the -- with the police department, since Friday night, when the fire started.

Like the mayor said, we -- we did a really good job, I think, with the amount of fire we had here, to limit the loss to -- to the fire -- building itself. We have had an ongoing investigation since even before the fire was extinguished. The police department, along with our guys, immediately began interviewing people that was here, and -- and -- and getting information from what they saw. And, again, I just appreciate all the help we have had.

this -- this far exceeded our resources and what we were able to handle. And -- and, without your help, we wouldn't have been able to do as -- as well as we have. Thanks.

QUESTION: Do you find yourself being nervous on a nightly basis, just considering the kind of fires that have been erupting?

MARTIN: No, no, not really. It seems like we have had quite a few here just in a short period of time. But I'm -- I'm confident that -- that our guys can handle whatever comes up. And -- but, no, I'm not nervous.

KEN SWINDLE, TUSCALOOSA COUNTY, ALABAMA, POLICE CHIEF: I'm ken Swindle, chief of Tuscaloosa Police Department. Thank you all for coming out today.

As you know, this started about 11:50 Friday night. Since that time, Tuscaloosa Police Department and Tuscaloosa Fire Department has been working real close to each other -- with each other.

We arrived at the scene and started the investigation. All day Saturday the, ABI, the State Fire Marshal's Office, and James Cavanaugh from ATF, Tuscaloosa firefighters investigator, and Tuscaloosa Police Department investigation, started picking up all the witnesses and interviewing them.

We did that all day Saturday. We was able to determine all the people that was out here that we could account for at that time.

At this time, we do not have any suspects. We have not made a determination. That's what Mr. Cavanaugh and the ATF agents are doing here now , with fire investigators and Tuscaloosa Police investigators, trying to make a determination whether it was accidental or it was arson.

We was very fortunate -- or unfortunate, I might say -- that ATF was in here at this time, to have the caliber of people and the State Fire Marshal here to assist and be here at this time. The team that they have brought in is just impeccable -- impeccable. And we are very fortunate to have them here and working with our investigators to be able to help conclude this.

We will be around. We will be glad to answer any questions when we get through. But I do want to thank everybody. The news media has been great. You all were out Saturday. You helped us on getting the information out on the videotape that we put out. We still have not had any calls.

And, if any of you get any calls, please refer them to us. But we still need that videotape for investigation. But I do thank everybody and all the federal folks that's here. They have been great to work with.

And thank you all for coming down today.

ED PAULK, ALABAMA ASSISTANT STATE FIRE MARSHAL: Ed Paulk with the State Fire Marshal's Office. I don't know what I might add, other than the fact that we are here to assist the Tuscaloosa Police and Fire Departments and the national response teams from ATF in determining the origin and cause of this fire.

Once we have determine what the -- what the cause of the fire is, then, if further investigation is needed, then, we will move in that direction.

But, for the next few days, we will be at the business of determining what caused this fire. And, as things progress, we will try to keep you updated. Thank you.

JIM CAVANAUGH, BUREAU OF ALCOHOL, TOBACCO AND FIREARMS REGIONAL DIRECTOR: Good afternoon.

Well, we're in a -- we are in a bad place, obviously, with a big commercial fire like this in Tuscaloosa. But we are in a good place, because we have got a great fire department and a great police department. And these are some of the best in the region. And they were here quick, and really on their game.

So, we didn't get any firemen were hurt. We didn't get anybody -- we didn't get the rest of this business burned down, thanks to those firefighters.

And the police were exceptional, because, when our supervisor got on the scene, the detectives were already handing him diagrams and interviewed witnesses. So, I -- I can't say enough about the professional response we have got here.

So, what we are trying to do is layer on top of that, build on top of that. We have the State Fire Marshal's and all these agents. And we are going to dig this wet, rainy, nasty scene out in the next two or three days, and try and come to what we call the cause and origin of this fire.

Now, I know it has caused you all a lot of concern. It has caused the community a lot of concern. I was with the attorney general this morning in Birmingham. And we talked about this fire. The business does print religious articles.

And it does sell some religious articles. But, as I understand, they do other printing business. It's not strictly a religious business. But that's -- you know, we are in -- we are in a region of faith. We are in a region of churches. And we are in a region of -- of Christian goodness. And we are going to have businesses that support that.

And, so, that's not that unusual. But, because of the church fires, I think we have to really make sure there's not a connection. So, let me tell you what we're doing. We're running a parallel and separate investigation. Now, you all know, we have had more than 600 leads set in our command post here in Tuscaloosa. And we are going to put a supervisor here that's going to go to all of our briefings with the church fire leads, and all of the briefings here on this case.

And, then, we are going to parallel those leads. We are fortunate that our ATF computer case management system is very adept at doing those kind of things. So, we can parallel the leads, and later import the leads, and connect them if we need to.

But, remember, we don't know what caused this fire. So, it could yet be accidental. You know, it could be incendiary. It could be -- we may not be able to determine. So, the first course of business is the heavy work, the cranes, the bulldozers, the -- you know, the sweat, to get in there and try and find out, you know, what caused this fire.

We can talk to you later about the group of experts we have, you know, and we will be glad to flesh that out with you. But I'm sure you want some questions. And we will be glad to answer. And so will all the chiefs and the mayor.

Lewis (ph).

QUESTION: Agent Cavanaugh, how comfortable is the FBI and ATF in classifying the church burnings as -- as federal hate crimes?

CAVANAUGH: How come they are?

QUESTION: How -- comfortable are you with that analogy?

CAVANAUGH: Well, I think the FBI's done the right thing on this case.

I mean, they have opened a civil rights case. They have been a full partner with us. They are totally tuned in to that. You know, the possibility always exists that the motive in this church fires could go in any direction. And I think it's good that we are prepared together to go in any direction. So, no matter how it goes, we are going to -- we are going to take this joint command and go -- go with it.

QUESTION: You're (INAUDIBLE) new on the scene. What is it that brought the ATF here and on the scene, as far as chronology?

CAVANAUGH: Are you -- are you talking about this -- this scene here?

QUESTION: Well, I mean here in -- here in Tuscaloosa, based. And, then, basically, obviously it's been ramped up for this latest fire.

CAVANAUGH: Well, the ATF's business every day, our daily bread is bomb and arson. And we are the government's bomb and arson investigators. So, we -- we respond all the time to bomb and arson. We also -- church fires. Congress passed the Church Arson act in the late '90s, specifically for any house of worship that's bombed, or firebombed, or arson set in it.

So, of course, we respond aggressively to of those. It's really our business. I think the difference is that there has been a couple of clusters of church fires. And that has brought a significant amount of public attention, citizens concerned, congregations concerned, and, of course, media attention. So, that's why.

QUESTION: How much communications has the ATF had at all with the Southern Poverty Law Center, their (INAUDIBLE)

CAVANAUGH: I talked to Morris Dees a week ago about that. I know Morris very well. He's a -- he's a very helpful guy, a great guy. I talked to him. So, no, we have -- we have...

QUESTION: Did he have any good directions that maybe you wouldn't have known about or...

CAVANAUGH: Well, I...

(CROSSTALK)

CAVANAUGH: I -- I can't share any of our discussions, but we are alert to all those issues.

QUESTION: Now, there was a problem with the e-mail address, that you were trying to get a hold of the arsonists. Now that has been fixed, right? And has anybody contracted you by phone, e-mail, or by mail?

CAVANAUGH: Well, I will take responsibility for that, because the e-mail crashed. And, when we set up the e-mail address, initially, for the arsonists to be able to get us, that -- that crashed.

I -- I can't fix the computer myself. I'm a pinball man in a digital world. But we ordered to get it fixed quickly. And now it's up. And we have been able to respond to at least one set of e-mails that came in.

And I think we have pretty well determined, that's not the fellows. But one thing we are not going to do is probably tell the media if the arsonists have contacted us, because we would want them to know that anything they do contact us would be private between us and them.

So, I wouldn't be doing it not to tell you. But we wouldn't want to lose their trust, if they decide to call us our e-mail us or mail us something. And the local networks and papers here have that address. And we do appreciate you putting it out, because they may yet feel like they want to talk to us. NGUYEN: And you have been listening to Jim Cavanaugh, the FBI regional director there in Tuscaloosa, Alabama, talking about the latest rash of fires, and if they are connected to the church fires that we have seen in that state in the past few weeks.

At this point, Rusty Dornin is with us on set.

At this point, Rusty, it seems like there are a whole lot of questions and very few answers.

DORNIN: And -- but there's a lot of differences with these last three fires than the previous 10 arson fires.

This -- this little tiny church in Glencoe was so far away. And, also, again, as we were discussing earlier, it was started from the outside.

NGUYEN: Right, instead of inside, like the others.

DORNIN: Exactly.

And the others have been Baptist churches. They have been both white and black, but they have all been Baptist churches that were hit by the arsons.

NGUYEN: You have been to these communities.

And, with all of these questions and so few answers, is -- is there just a fear that has set in?

DORNIN: People are definitely unsettled about this.

You know, people, they -- they will drive by their little churches now just to check on them. But you really don't have people still sitting there in these parking lots, because these churches are -- are way off. People work during the day. There's no caretaker -- full-time caretakers.

So, they go, and they check on the church. But they really don't have the time or -- or that kind of thing to just baby-sit them. And, so, it is unsettling, because they don't know, when they leave -- you know, they go and check on it. When they leave...

NGUYEN: They're going to pull back...

DORNIN: ... something could happen.

NGUYEN: ... to a church or not, or -- or just flames.

And one last thing I need to ask you about. In the 1990s, there were a rash of church fires. Any chance that these may be connected in some way?

DORNIN: They are looking into that.

That's another thing I'm -- I'm sure that they are going to be doing with this national response team, looking -- you know, taking these parallel leads, they were saying, from the -- the warehouse fire, and, then, cross-filing them with the -- with the evidence from the other fires.

They are -- they're also looking back in history to see if any of those things match up. They haven't talked about it. But it's something they are definitely looking into.

NGUYEN: They are going to search every clue they can to find some kind of answer here.

Rusty Dornin, thank you for that.

HARRIS: Thank you.

NGUYEN: Tony.

HARRIS: Well, could the Web be the next target of a terrorist attack?

(BEGIN VIDEO CLIP)

ALEX WELLEN, CNN CYBERCRIME ANALYST: Are we prepared? Most the experts say we are not prepared.

(END VIDEO CLIP)

HARRIS: And the consequences could be catastrophic -- that story ahead on LIVE FROM.

(COMMERCIAL BREAK)

HARRIS: Well, critics say it's a dangerous deal, but the Bush administration says it's no big deal.

A company in the United Arab Emirates has purchased a London- based firm that manages operations at six major U.S. ports in New York, New Orleans, Baltimore, New Orleans, Miami and Philadelphia. The UAE was used as an operational and financial base for the September 11 attacks. And several members of Congress, Republicans and Democrats, argue, the port deal could open the door for possible terrorist infiltration.

Homeland Security Michael Chertoff says there are safeguards to prevent that from happening.

Appearing on CNN's "AMERICAN MORNING," Chertoff's predecessor, Tom Ridge, weighed in on the controversy.

(BEGIN VIDEO CLIP, "AMERICAN MORNING")

TOM RIDGE, FORMER HOMELAND SECURITY SECRETARY: Well, I think anxiety and concern that has been expressed by congressmen and senators and elsewhere is legitimate. The optics at this point don't look very good. But I have also sat in on that similar process, when we reviewed some other potential sales that could have an impact on America's security.

And I -- I do think that, at some point in time, you have to say to yourself, would Secretary Rumsfeld and Snow and Chertoff and Rice compromise America's security? I don't think so. The bottom line is, I think we need a little bit more transparency here.

(END VIDEO CLIP)

HARRIS: Another response to the prospect of a Middle Eastern company taking over some U.S. port operations, this one from the private sector, a Miami firm.

Continental Stevedoring & Terminals has filed a lawsuit, complaining that it would become an involuntary partner of Dubai's government.

Michael Kreitzer is a lawyer for Continental Stevedoring's corporate partner, Eller & Company. And he joins us from Miami to discuss this.

Michael, good to talk to you.

MICHAEL KREITZER, ATTORNEY, ELLER & COMPANY INC.: Well, good to see you too.

HARRIS: Do I have this right, that it would become an involuntary partner of Dubai's government?

KREITZER: Well, that's right.

We are currently partners with P&O ports. Together, we operate the Port of Miami, both the terminal operations and the stevedore operations. And by virtue of D.P. World, this foreign government acquiring P&O, we will now be partners with the Dubai government, involuntarily, I might add, because it's not something we choose to do.

HARRIS: Do you have any choice in the matter?

KREITZER: Well, we think so.

We filed a lawsuit late on Friday. We filed a day after we felt like the president was not going to re-review this transaction, and he was going to allow it to proceed without objection. And, so, we felt like our only remedy was to pursue a contractual remedy against them. And we think we have a good claim.

HARRIS: OK. Let me -- let me just say it again. Let me state it again, an involuntary partner of Dubai's government. That's the claim in the lawsuit. And what would be the problem in that?

KREITZER: Well, the problem is, is that, for the first time since approximately the 1800s in this country, a foreign government will be in control of six of our ports here in the United States.

The president himself has acknowledged that ports are a great -- are -- are an area of great security. They are very fragile. We don't secure them as well as we do our borders or our airports. And, for the first time ever, a foreign government will have an inside look into the vulnerabilities of our ports. And that's very troubling.

HARRIS: All right. I will ask it again. And it's troubling why?

KREITZER: Well, it's troubling, because, ultimately, our friends today may not be our friends tomorrow.

And the fact of the matter is that, if Dubai or D.P. World would have an interest in assisting in bringing weapons of mass destruction into this country, this would be the most feasible way of them doing it. And for the first time ever, they would have the control and the security access to do it, too.

HARRIS: Well, now, you understand that P&O, and, presumably, D.P. World, the statement that we have from P&O is that P&O is not responsible for security at the ports. Security standards in the United States are set by the Coast Guard, the Department of Homeland Security.

So, presumably, that doesn't change once D.P. World is in control.

KREITZER: Well, the reality is that the president, just last year, approximately five months ago, issued a report on maritime security.

And the president acknowledged that, given the vastness of our ports and the difficulty in protecting them, that the first line of defense is private industry. In effect, there's a public-private partnership when it comes to protecting our ports, unlike the airports and unlike our borders.

So, now, even though the president is looking to us to protect these ports -- and we accept that responsibility -- he is hoisting upon us a foreign government to be our business partner.

HARRIS: Well, let me try this...

KREITZER: And it makes no sense.

HARRIS: Let me try this one on you.

Your real concern is that DPW will follow in the lead of P&O. P&O, over the last few years, has been aggressively buying up port operations in Miami and some of the other ports that we have mentioned. And your real concern is that DPW will make a bid to buy out the company you are representing, Continental Stevedoring, and then maybe even the parent company that you represent, Eller & Company.

KREITZER: No, we don't think that's a very serious risk. You know...

(CROSSTALK)

HARRIS: Is it a risk?

KREITZER: Of course, it is certainly a risk.

And, if that risk occurs, then, the end result is, the Dubai government is in complete, 100 percent control of the Port of Miami. I assure you, that is something we would fight in every court in this land.

HARRIS: And you -- you understand that, in some corners, that will sound a bit racist, that you don't want Arabs to be in control...

KREITZER: No.

HARRIS: ... of the port business in any significant way in the United States.

KREITZER: No. I think what I'm trying to say, and what we are trying to say, is that foreign governments should not be in control of our national security, particularly when it comes to the ports.

And it doesn't matter what -- much to us what foreign government that might be. But it is clear to us that the United States government should be in control of our ports, and the companies that are loyal to our government should be in control of our ports.

We have been in business since the 1930s. We understand the ports. We understand the security issues and risks at the port. We're best able to control those risks. But we're in fear that we may not be able to effectively do so, if our 50 percent business partner has a say in those matters.

HARRIS: Michael, your companies have any problem in partnering with P&O? It's a foreign-owned company.

KREITZER: We have had disputes with them in the past.

But they have all been partnership disputes that have been resolved over time. The big difference, however, that I would point out is that P&O is not owned by a foreign government. P&O may be based in a foreign country, but it has shareholders, just like our corporations have shareholders, here in the United States.

The big distinction here is, as I said before, the first time in almost the history of this country that a foreign government -- not a foreign company, but a foreign government -- will be in control of the Port of Miami and five other ports throughout the Northeastern United States, including the Port of New York, which has been deemed by our Department of Defense as being a port of strategic significance.

HARRIS: Michael Kreitzer, thanks for taking the time.

KREITZER: My pleasure.

HARRIS: OK. Under the deal we have been discussing, a state-run firm called Dubai Ports World is buying the London-based London-based Peninsular and Oriental Steam Navigation Company. P&O's North American president, Michael Seymour, says he will not comment on the lawsuit until his lawyers have examined it.

But Seymour noted that P&O is already foreign-owned, and -- quote -- "has long worked with U.S. government officials in charge of security at the ports to meet all U.S. government standards."

He also said -- quoting again -- "We are confident that the D.P. World purchase will ensure that our operations continue to meet all relevant standards in the U.S."

NGUYEN: Well, terrorists trying to disrupt the American economy might launch future attacks in cyberspace. That is the worry of Homeland Security officials, who staged a simulated assault called a cyberstorm to see if the country is ready.

Our Gary Nurenberg reports.

(BEGIN VIDEOTAPE)

GARY NURENBERG, CNN CORRESPONDENT (voice-over): Say special forces, and the image of hardened fighters in the war on terror pops readily to mind. But special forces of a different kind recently invaded the secure basement of Secret Service headquarters in Washington to stage another kind of assault, a simulated cyber-attack.

ALEX WELLEN, CNN CYBERCRIME ANALYST: Are we prepared? Most of the experts, say we're not prepared.

NURENBERG: In the larger cyber-exercise yet, more than 100 experts from seven Cabinet-level agencies, foreign governments and corporations like Microsoft and Symantec simulated the kind of cyber- attack that experts believe hackers, anarchists, or terrorists might be planning.

WELLEN: We haven't seen what they call a Pearl Harbor, a cyber Pearl Harbor, to date. But we know that they are capable of hitting different parts of our finance or different parts of our transportation and emergency systems.

NURENBERG: The exercise was called cyberstorm. Participants simulated online attacks on power grids, banking, finance, and retail computer system, health care records, and programs that control traffic on the land and in the air.

BRUCE SCHNEIER, FOUNDER, COUNTERPANE INTERNET SECURITY: Exercises like these are good. They -- they teach us what the limitations are of our responses, and how we can do better.

NURENBERG: The computers used in the $3 million exercise were carefully segregated from the real online world to make sure the simulated attack didn't, by mistake, become real.

(on camera): Planners know, a successful attack could have a devastating effect on the economy.

GEORGE FORESMAN, ACTING DIRECTOR, DEPARTMENT OF HOMELAND SECURITY NATIONAL CYBER SECURITY DIVISION: Because, you know, think about it. The Internet and Internet activities are the backbone of our modern economy.

NURENBERG (voice-over): Exactly the kind of target al Qaeda has indicated it wants to strike. And the Net may be venerable.

SEN. JOSEPH LIEBERMAN (D), CONNECTICUT: We have taken some steps to protect ourselves from cyber-attack. We have got to do more.

NURENBERG: A May 2005 Government Accountability Office study concludes, the Department of Homeland Security -- quote -- "cannot effectively function as the cyber-security focal point intended by law and national policy."

This month's cyberstorm exercise is part of the effort to improve. The plan is to publish results this summer.

Gary Nurenberg, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: CNN is your security headquarters.

You will want to stay tuned day and night for the most reliable news about your security.

And the news keeps coming. We are going to keep bringing it to you -- more LIVE FROM next.

(COMMERCIAL BREAK)

(WEATHER REPORT)

HARRIS: God bless America.

NGUYEN: Cute little things.

HARRIS: Little tiger scouts.

NGUYEN: Boy scouts.

HARRIS: How about that, huh? God bless America.

We all love to hear stories about families that have reunited after being split apart. In Tennessee, there's one such story with a particularly large family.

CNN's Keith Oppenheim explains.

(BEGIN VIDEOTAPE)

KEITH OPPENHEIM, CNN CORRESPONDENT (voice-over): In the remote Tennessee hills, it is the end of a long journey. After more than 600 miles, two travelers reach their new home. The door opens and it is obvious that the passengers are curious about this strange new place.

UNIDENTIFIED FEMALE: Oh, pretty girl. How are you?

OPPENHEIM: Her name is Mini. But there is nothing mini about her. And more than 11,000 pounds, Mini gingerly steps out of the trailer. Minutes later, Mini's traveling partner Lodi (ph) joins in. After two days in a trailer, she's ready to play...

UNIDENTIFIED FEMALE: Good girl.

OPPENHEIM: ...to share a drink, to show a little love.

UNIDENTIFIED FEMALE: What are you doing? Huh?

OPPENHEIM: Mini and Lodi are in their 40s. For most of their lives, they were rented out to small circuses. Lodi is a leader, a matriarch with strong influence on other elephants. And so far she seems to like her new home, the elephant sanctuary in Tennessee.

SCOTT BLAIS, CO-FOUNDER, THE ELEPHANT SANCTUARY: I think the biggest thing that we can provide for them here is the opportunity to evolve into who they are and who they're supposed to be.

OPPENHEIM: Scott Blais and Carol Buckley founded this 27,000 acre facility more than 10 years ago, so aging elephants could roam and live their lives in freedom. The sanctuary doesn't allow visitors, but it does stream live pictures on its web site. That helps with donations.

Interestingly, there are no male elephants here as they tend to be solitary and a bad fit in the tight relationships of female elephant society.

CAROL BUCKLEY, CO-FOUNDER, THE ELEPHANT SANCTUARY: They are matriarchal by nature, which means the females live their entire life with their mother's family.

OPPENHEIM: By necessity, the elephant sanctuary is in effect also a rehab center. The founders say that many elephants were neglected in circuses or zoos.

BUCKLEY: And I tell you every single elephant is labeled as bad in some way. Something about their behavior is bad.

OPPENHEIM (on camera): And they're treated that way.

BUCKLEY: And they're treated that way.

OPPENHEIM (voice-over): In fact it was allegations of mistreatment that brought Mini and Lodi and nine other elephants from the same herd to the sanctuary by order of the U.S. Department of Agriculture.

They were in northern Illinois at a facility owned by the Hawthorn Corporation, a provider of circus animals with a history of problems with elephants. The U.S. Department of Agriculture charged Hawthorn with numerous violations.

(on camera): It said that from 2001 to 2003 Hawthorn repeatedly violated the Animal Welfare Act by not providing good veterinary care and by treating the elephants in such a way that they were stressed and traumatized.

In 2004, Hawthorn entered into an agreement with the USDA to pay a $200,000 fine and to donate its elephants to other facilities.

(voice-over): Hawthorn officials declined to speak to CNN on camera but sent us this written statement: "Hawthorn has been focused on finding fitting homes for its elephants and ensuring that they continue to receive the best possible care."

In all, over two years, Hawthorn has released 11 elephants to the sanctuary. Carol Buckley says all of them have been exposed to tuberculosis, and so the sanctuary staff wear face masks as a precaution.

Today, in Illinois, Billy and Freida (ph) are the last to make the trip to Tennessee. The company tries to block our view, but the elephants load up surprisingly quickly and then hit the road. We follow along, stopping whenever they do for an elephant picnic.

UNIDENTIFIED MALE: There you go.

OPPENHEIM: Carrots, apples, bananas and hay. After more than seven hours of traveling, the two elephants get a break.

BLAIS: We're about done for the night. We're just checking on them one last time.

OPPENHEIM: In a rest area in Kentucky, Billy and Freida stand in the back of the trailer and get some sleep. In the morning, Billy gets going with a gulp of water. Freida starts the day with carrots and potatoes.

(on camera): So they're comfortable back there?

BLAIS: Oh, they're very comfortable back there. We have a heating unit that is keeping the trailer right around 60 degrees, 65 degrees.

OPPENHEIM (voice-over): Their arrival has been anticipated. Staff line up to meet the last of the Hawthorn herd. Freida is first off the trailer. A veteran of the circus, her health isn't great. She's underweight with built up dead skin all over her body.

At 53, Billy is the oldest of the herd, and she carries scars from captivity, chain marks that go an inch deep on her legs.

Freida trumpets. Normally a positive sign, but she's a little out of sorts after the trip and in no mood to share with billy. She steals part of Billy's grain.

Outside the other elephants from the Hawthorn herd play in the creek, but they sense the new arrivals. Some of them have been separated from Freida and Billy for years. They line up, crowding each other for a view.

Inside, Freida feels shy and stays behind. Billy ventures outdoors. At Hawthorn, Billy and Freida were considered aggressive, often kept apart from the other animals. So here they are reintroduced slowly to the rest of the herd, putting them in separate corrals.

But clearly these elephants care for each other. The emotion easily carries over a big fence.

BUCKLEY: We weren't sure if they were going to be friendly toward each other, but look at that, I mean, they just, you know, reached over the fence, touched each other...

OPPENHEIM (on camera): There is love going on?

BUCKLEY: Oh, gosh, yes.

OPPENHEIM (voice over): It is true. An elephant never forgets. Her sisters smother Billy with affection. Moments like this make the effort worthwhile.

(on camera): How many elephants are you going to have, do you think, or do you want?

BLAIS: We have no idea.

BUCKLEY: He has no idea. I know how many.

OPPENHEIM (voice-over): With the new arrivals, Carol Buckley now takes care of 19 elephants. She says she has enough land for as many as 100.

BUCKLEY: Good girl.

OPPENHEIM: It sounds like a dream. But for Mini and Lodi and their sisters who found a better life here, it is already a reality.

Keith Oppenheim, CNN, Tennessee.

(END VIDEOTAPE)

HARRIS: Elephant love.

NGUYEN: That's such a great story.

HARRIS: Isn't that good?

Continuing a trend at zoos around the country, the New York Bronx Zoo recently decided that when one or two of three its elephants dies it will shut down the elephant exhibit for good.

NGUYEN: Well, there is renewed joy for a penguin couple that had their first chick stolen. Yes, they have hatched another egg though. Not sure yet whether it's a chick or a chickette.

Whichever, zoo keepers in southern England are making sure it stays put. They've installed close-circuit TV cameras and motion sensors determined it won't be stolen, as 3-month-old Toga was stolen back in mid-December.

Take a look at this, Tony. He is cute and cuddly, all right? Put him up. Oh, my. But he should probably cut back a bit on the chow, don't you think? Yikes. We're not kidding, folks. That's a real cat. Would you believe this fat feline weighs a whopping 33 pounds?

HARRIS: Cholesterol numbers through the roof. Arteries clogged. Heart disease.

NGUYEN: No joke. The cat is so heavy that, as you saw moments ago, it had to be helped just to get into that bed. Now, the owner is blaming a healthy appetite -- yes, sure, blame the cat -- saying the kitty eats about six pounds of chicken a day.

I wonder how that cat gets six pounds of chicken a day. Yes, small children should probably steer clear. The cat eats a lot apparently.

Well, if there was a gold medal for the most determined Olympic fan, he could be the winner. Coming up, meet a man who is not letting any obstacles get in his way of enjoying these games.

(COMMERCIAL BREAK)

HARRIS: The U.S. Women's Hockey Team medals at the Torino Winter Olympics. Though it didn't get the color it was hoping for. The women take the bronze after beating Finland 4-0 today. One of the players says, well, the team is just happy to go home with at least some hardware.

Meanwhile, Austria is enjoying a big day at the games. It won its first team Olympic ski-jumping title just hours after Benjamin Raich won gold at the men's giant slalom. And Michaela Dorfmeister came in first in the women's super G to win her second gold in the games.

And the final session of ice dancing is underway in Torino. Hopes are high the U.S. pair will become the first Americans in 30 years to medal in the competition -- Betty.

NGUYEN: Well, the games are filled with incredible seats. And not always by the athletes. One very special spectator is overcoming huge odds just to be a part of the Olympic spirit. CNN's Alessio Vinci reports.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN CORRESPONDENT (voice-over): Sometimes it's not what you see, but how you see that matters. Just ask die-hard Olympic fan Giovanni Guzzi. GIOVANNI GUZZI, OLYMPIC FAN: Yes, I imagine those counts (ph) are very, very tired. And they pass very fast.

VINCI: Giovanni has never seen a cross-country skier in his life. Because he has been blind since he was three months old. But when he heard the winter games would be coming to Italy, the college student swore he'd be there and bought $2,000 worth of tickets.

GUZZI: It's important for me because Olympic pressure is here.

VINCI: Giovanni ignored those who told them he'd be better off listening to the Olympics on the radio. On this day he left his home in Torino before daybreak to reach the cross country venue up in the mountains in time. Walked ten minutes to the station. Took an hour- long train ride and finally reached the course at Pragelato by bus with a group of Finnish fans. He did it alone with the occasional Olympic volunteer helping out where necessary.

GUZZI: It's better here. At home yes, happy, but it's possible to support my team. I cannot shout Italia!

VINCI: To follow the race, Giovanni listens to the announcer and gets minute by minute updates from fellow spectators, or, in this case, from me.

(on camera): Italy's four seconds behind.

(voice-over): The cheering crowd does the rest for him.

(on camera): The skiers are passing by, but you can not see them. Is it the same thing for you?

GUZZI: Yes, it's an emotional, important emotion. Because people are happy. And are shouting.

VINCI (voice-over): Italy grabbed its third gold medal in this race. And Giovanni is leading the victory to the fullest.

GUZZI: Great for Italy. Great supporters are singing, are excited. A very, very, very good party in Italy today.

VINCI (on camera): Giovanni's heroes may be the athletes here winning medals. But in anyone else's eyes, he is the true inspiration, having overcome hurdles many would have considered insurmountable in order to get here and savor the games from start to finish.

Alessio Vinci, CNN, at the Olympics in Pragelato.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

HARRIS: Time now to check in with CNN's Wolf Blitzer. He is standing by in "THE SITUATION ROOM" to tell us what's coming up at the top of the hour. Happy President's Day to you, Wolf. WOLF BLITZER, CNN ANCHOR: Right back at you, Tony. Thank you very much. Coming up, port insecurity. A company controlled by the United Arab Emirates is taking over security of six of America's largest harbors. We'll take a closer look at the political push back against the White House and whether this is a threat to U.S. national security.

A political battle over Hamas. Are the U.S. and Israel trying to smother the Islamic militant group? Jimmy Carter was there when Hamas pulled off a surprising election victory. And on this President's Day the former president joins us live here in THE SITUATION ROOM.

Plus, more fall-out from Dick Cheney's friendly fire incident. Is the vice president a drag on the White House? We'll have a new poll. Those stories, Tony, lots more coming up at the top of the hour.

HARRIS: OK, Wolf. Thank you.

NGUYEN: LIVE FROM is back after a quick break. Stick around.

(COMMERCIAL BREAK)

HARRIS: Well, you know, we are thinking of this as the video of the day. You are welcome to disagree. But we are going to show you the tape anyway.

Dateline, Puri, India where a colossal rooster has taken form along a popular beach. Look at that. The man who sculpted the behemoth bird has something to crow about. But it's far more than his world-renowned talent as a sand sculptor. Indeed, this is a cautionary work to create awareness about the presence and dangers of bird flu which has just recently been found in India and there you have it.

That does it for us for this Monday edition of LIVE FROM. I'm Tony Harris. We'll see you back here tomorrow.

And I'm Betty Nguyen. Here's Wolf Blitzer in "THE SITUATION ROOM."

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