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Insurgents Attack Iraqi Police Compound; New Elvis Exhibit Opens in Graceland; Charges Dropped in Teacher Sex Case

Aired March 21, 2006 - 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: Surprise attack at daybreak -- dozens of insurgents armed to the teeth against a police compound north of Baghdad, one of the most brazen attacks in recent memory, even for Iraq
Our Nic Robertson shows us the deadly results.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): A smoldering ruin, the last trace of a complex attack by insurgents, who hit, and then fled with their comrades.

Burnt-out vehicles litter the police compound, from where more than 30 suspected insurgents were freed. Shell casings litter the ground, silent testimony to the scale of the attack that police say was launched by more than 100 insurgents mounted in 11 vehicles. Rockets and heavy machine-gun fire, police say, were used to breach their secure headquarters -- in the ensuing gun battle, more than 18 police killed and seven wounded.

Families scrambled to search for loved ones.

"Where is my son," she cries? "Let me in. I must look for him."

"By God, I have seen him," the guard tells her. "He is OK."

U.S. troops and the Iraqi army came in to provide backup. One U.S. soldier was injured -- only one insurgent confirmed dead.

(on camera): It's not the first time insurgents have been sprung from jail. Police say, in 2004, it happened on several occasions, but not last year. A police spokesman we talked to described the Muqdadiyah incident as a worrying development.

(voice-over): In Mosul, in late 2004, poor training, corruption and infiltration by insurgents were to blame when police fled and their outposts were destroyed, as they came under insurgent attack.

As the investigation into the Muqdadiyah jail break begins, likely, infiltration and readiness of the fledgling police force will come under the microscope.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE) PHILLIPS: Well, he sent U.S. troops to Iraq, but it looks like he won't be the one to pull them out, not all of them, anyway.

At a White House news conference you may have seen live here on CNN, President Bush pledged to keep Americans in the fight, leaving open a nagging question.

(BEGIN VIDEO CLIP)

QUESTION: Will there come a day -- and I'm not asking you when; I'm not asking for a timetable -- will there come a day when there will be no more American forces in Iraq?

QUESTION: That, of course, is an objective. And that will be decided by future presidents and future governments of Iraq.

QUESTION: So, it won't happen on your watch?

BUSH: You mean a complete withdrawal? That's a timetable.

I -- I can only tell you that I will make decisions on force levels based upon what the commanders on the ground say.

(END VIDEO CLIP)

PHILLIPS: Well, Mr. Bush acknowledged growing doubts among Americans and election-year fears among fellow Republicans, but he says being in Iraq is the right thing.

Same message, different messenger -- Vice President Cheney echoing the president today at Scott Air Force Base in Illinois -- Cheney cited steady, if not easy progress in Iraq, and rejected a timetable to bring Americans home.

(BEGIN VIDEO CLIP)

RICHARD B. CHENEY, VICE PRESIDENT OF THE UNITED STATES: As the Iraqi forces gain strength and experience, and as the political process advances, we will be able to decrease troop levels, without losing the capacity to defeat the terrorists.

And, as always, decisions about troop levels will be driven by the conditions on the ground and the judgment of our military commanders on the scene, not by artificial timelines set by politicians in Washington, D.C.

(END VIDEO CLIP)

PHILLIPS: The U.S. mission in Iraq is now in its fourth year.

Got an urgent tip for the FBI? Don't e-mail it. You will find this hard to believe -- we certainly did -- but the war on terror notwithstanding, the government, reportedly, can't afford to give all its FBI agents e-mail accounts. The Associated Press quotes the bureau's boss in New York, who admits the disconnect is ridiculous, but says -- quote -- "We just don't have the money." Back in Washington, a spokeswoman says accounts are being assigned. And the New York agents will enter 1998 by the end of 2006.

You know the rules: Blow off your traffic tickets, jeopardize your license. Blow off your taxes, go to prison. Blow off your fines for chemical spills or unsafe products or mine accidents, uh, we're not quite sure.

CNN's Tom Foreman reports, a colossal amount of fines go uncollected, while the government wallows in debt.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Thirty-five billion dollars, as much as China will spend on its military this year, as much as Americans will spend on weight-loss products, almost as much as the president hoped to save with the Deficit Reduction Act, that's how much the federal government is owed in unpaid fines by businesses and individuals, according to an investigation by the Associated Press.

Scott Amey is with a group that scrutinizes government performance.

SCOTT AMEY, GENERAL COUNSEL, PROJECT ON GOVERNMENT OVERSIGHT: It is outrageous. And I'm outraged at the government's willingness not to collect the fines and penalties that it -- companies and individuals owe the federal government.

FOREMAN (on camera): You think this is a part of an overall trend of the government not really holding business accountable.

AMEY: Sure, it is. And the government isn't collecting the money that is owed. And that -- that's what the scary thing is. The American taxpayer is losing.

FOREMAN (voice-over): The investigation found unpaid fines for a wide variety of offenses, from gasoline spills to unsafe coal mining conditions, to faulty consumer products, to tainted food.

White-collar crime cases account for the largest amount of uncollected debt, the report says. But fines related to those offenses were paid only 7 percent of the time.

(On camera): Why so little? None of the government agencies we contacted wanted to talk on camera about this, but many suggest they don't have enough people to collect all these debts. And many offenders don't have the money to pay anyway.

(Voice-over): So, reporter Chris Sullivan says, often, government regulators are content with promises that offending companies won't break the rules in the future.

CHRIS SULLIVAN, ASSOCIATED PRESS: In many cases what happens is that the amount that is assessed is reduced substantially. In a few -- in some cases, we -- we found that, by statute, fines were waived, as soon as they -- as soon as they were issued.

FOREMAN: A measure is expected to be put before Congress next month to crack down on all these unpaid fines.

(On camera): But just blocks from the Capitol, Oscar Keyes (ph) is furious that the government has let $35 billion go uncollected.

(on camera): What do you think about that?

UNIDENTIFIED MALE: I think they should be collecting it because they collected mine.

FOREMAN, (voice-over): After all, he was at the Department of Motor Vehicles, paying $270 worth of fines for illegal parking.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: What's that smell? In Annapolis, Maryland, it's a sure sign of spring for folks who love boating. They call it the burning of the socks. And that's how they observe the vernal equinox. Well, they're celebrating that it's almost warm enough to start boat shoes without socks. The tradition started with dock workers back in the '80s, but now even wealthy sailboat owners get involved, throwing in their tube socks, even their pantyhose.

It doesn't look or feel like spring in the Midwest, though.

CNN meteorologist Dave Hennen has the forecast.

Who is getting hit the hardest, Dave?

DAVE HENNEN, CNN METEOROLOGIST: Well, it's beginning to wind down. That's the good news, Kyra -- the storm which produced all of the snow yesterday, just a shadow of its former self.

You can see, by our radar -- we're going back about 12 hours or so -- we had blizzard conditions for a while in Springfield, Illinois. The blizzard warning was in effect there this morning. They picked up eight inches of snow. There were 40 miles-per-hour winds on top of it.

The snow then moved into parts of Indiana, into Cincinnati -- not as much in Cincinnati, about three inches, on last report, on the ground there. But notice how the whole area is beginning to diminish somewhat. That's the good news.

The snow should do the same as it continues to move off to the east -- this snow system losing its moisture and moving rather quickly to the east. And that is why it is beginning to die out some.

Let's take a look at our forecast. This is our computer model, which adds up the forecast amount of snowfall over the next 24 hours. And notice a lot of whites, compared to a lot of pinks and purples yesterday. Yesterday, we were looking at over a foot of snow in many locations. Now we will probably top out with an additional three to four inches in just a couple of locations. Most areas will see just an inch or two.

Here's some snowfall totals for you out of Nebraska, some incredible totals there. Yesterday, there was a 150-mile-wide stretch along I-80 that was closed. That has since reopened. But you can see why it was closed, 25 inches of snow in Greeley, Grand Island at 20 inches, and Hastings picking up about 20 inches of snow.

Much of it will melt over the next couple of days, as temperatures slowly begin to warm up -- kind of a mess through the airports, been so through much of the day. We have several delays to talk about. So, if you're flying right now, Atlanta, about 30 minutes delay.

There's a ground stop. That means traffic destined for La Guardia stopped on the ground because of some low clouds and some fog and some rain and snow that has been moving towards the New York City area.

And delays have been all day long here in San Francisco. We're looking at delays there of about an hour.

By tomorrow, not a whole lot of change. We do have still cold air in place, so we're going to have to wait a while for spring to show its face -- Kyra, back to you.

PHILLIPS: All right, Dave, thanks so much.

Well, better neighborhoods, better schools, better just about everything, that's the plan for a new and improved New Orleans. The city's mayor, who is up for reelection, has unveiled his blueprint, offering everyone the chance to rebuild, but warning that the lowest- lying neighborhood are likely to flood again if another Katrina hits.

(BEGIN VIDEO CLIP)

RAY NAGIN (D), MAYOR OF NEW ORLEANS: It's important that you, as citizens, have the option of rebuilding on your own or taking advantage of the buyout options in the Failed Levee Homeowner Recovery Program I pioneered.

As you may recall, this program offers grants of up to $150,000. Once these areas become safer, if you choose to take that option, you will have first option to move back into your neighborhoods.

(END VIDEO CLIP)

PHILLIPS: Well, some people in New Orleans believe that the plan favors the rich and leaves the rest on their own, but, like it or not, the mayor's plan is final, once the state OKs it.

Think the U.S. would ever talk Iran? Want to bet? One Web site proves, when it comes to wagering, just about anything is fair game. The odds on Iran and a lot more straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: An attack on Iran by the U.S. or Israel, what are the odds? TradeSports.com is taking bets, sort of. It's kind of complicated. And they went to the experts to calculate risk vs. reward, experts such as Ian Bremmer from the Eurasia Group -- he's in London -- and joining us Boston, our good friend Jim Walsh, an international security analyst at MIT.

Gentlemen, good to see you both.

Ian, it was the "Atlantic Monthly" article that we saw that caught our attention. And that -- the headline is "Bombing Iran." And then it actually goes into the odds through this Web site, TradeSports.com. And I saw your name quoted in there.

Let me ask you about, when you do something like this, how do you gather data, when you get that headline bombing Iran, OK, let's put together the odds of that?

IAN BREMMER, PRESIDENT, EURASIA GROUP: Well, I think we have to recognize that, whether you're talking about 50 or 60 or 70 percent, there's a little bit of artistry here.

I think what we have to understand is, first of all, you take in the context of other similar decision-making processes around, taking military action, limited strikes against other countries. But you also recognize, fundamentally -- and this is, I think, unquestionable in the markets, that the likelihood of military action, whether surgical strikes or other types of military action against Iran, has increased pretty substantially over the past six months, especially if you look at a time frame that is going out for one to two years.

That's true, whether you look at what U.S. policy-makers have been saying. It's also true, in terms of the international community, and their reaction to the increasingly provocative and isolating behaviors of this Iranian regime.

PHILLIPS: So, Jim, from a political perspective, what do you think of this idea of a Web site like TradeSports.com...

(LAUGHTER)

PHILLIPS: ... putting together the odds of, will there be a strike on Iran or not, bombing Iran?

JIM WALSH, INTERNATIONAL SECURITY ANALYST, MASSACHUSETTS INSTITUTE OF TECHNOLOGY: Well, I have a mixed reaction, Kyra.

On the one hand, you should know, I have to be honest with you, I made a successful bet for dinner with a colleague of mine a year ago on this very topic. And I won that bet.

(LAUGHTER)

WALSH: So, I have experience in this area.

PHILLIPS: So, you're a betting man?

WALSH: Well, in a small way.

(LAUGHTER)

WALSH: But, obviously, this is a serious issue.

And my own view, perhaps different from Ian's, is that, while it's true that the -- the likelihood may have increased, that likelihood is still extremely, extremely small. And here's the one reason why, the major reason why.

We -- you cannot have an airstrike in Iran unless you substantially increase the number of U.S. ground troops in Iraq and their deployment times. No serious military official is going to say, let's attack Iran without beefing up the defenses in Iraq. And, frankly, as you heard in the clips earlier at the top of the show, while the president is not setting a timeline, he wants to bring troops home. He wants to reduce those levels, not increase those levels.

So, I still think it's an unlikely event.

PHILLIPS: All right. Let's get to the odds that were laid out in an interesting way in this article by TradeSports.com.

And, Ian, I will get you to -- to start. The first one in -- in this table of -- of odds, 4-1, "overt airstrike by United States or Israel by June 30, 2006."

And these are the points they bring up. "By this date, United Nations Security Council will have sanctions. It will be an election year for Israel, but neither U.S., nor Israel wants to risk a strike close to elections."

What do you think about those odds?

BREMMER: Well, I -- I don't think elections are going to be the driving issue here.

I think June 30 is early. We see that the Russians are already dragging their feet on the Security Council process. The Chinese aren't exactly where the U.S. or the Europeans are at this point. I think it's pretty clear that we need to -- before we can really countenance the prospect of even limited military strikes, which certainly are an option, irrespective of the number of U.S. troops on the ground in Iraq, by the U.S. and certainly by Israel, that you have to go through a full Security Council process.

If that process breaks apart after censure, after limited punitive actions, there would be still be an effort to bring a coalition of the willing together for some kind of more extensive sanctions. That is a process that is going to take, I think, four to six months, minimum -- very hard to imagine that June is the operative date here, when you start seriously considering the possibility of moving to the military option. PHILLIPS: All right, here was the next -- here are the next set of numbers laid out. Three-to-one, airstrike by December 31, 2006. "November elections, over in the United States, new government in place in Israel. Both -- but both countries may still want to let international community deal with Iran nuke threat."

What do you think of what they're throwing out there, Jim?

WALSH: Well, I think the oddsmakers are correct in saying that, the more you push this into the future, the more likely it is.

That is to say, I agree with Ian that it's not very likely in the short term, because we are going to go through the step process at the U.N. I have -- I have read the draft resolution, as of yesterday, and all it says is for the IAEA to investigate some more. Then, we might have political sanctions. Then we might -- might -- have economic sanctions.

So, we're talking about a long process before anything is done. But, again, for reasons that I have described, and other reasons, do -- does the U.S. really want to attack its third Muslim country in five years? What does that do to the war on terrorism?

What -- how would Iran respond, the mischief that it could cause in Iraq? I'm doubtful about the whole prospect, but I agree that it's more likely later than it is in the near term.

PHILLIPS: All right, talking about later -- and, Ian, you actually made comments on the oddsmakers on this one. Two-to-one, airstrike by March 31, 2007. "If Iran continues to make nukes, military may strike against key nuclear sties. Strikes are likely by the U.S. or Israel in first quarter of 2007."

Ian?

BREMMER: Well, this is why you really need the experts writing up the -- the quote -- the quotations for the bets here, and not -- not just the spectators.

I -- I think that that's closer to the time frame, but they talk specifically about strikes. We need to recognize that we're not just talking about strikes as an option. We're talking about military action.

And, you know, if we get to the point there's military action, that might well be covert sabotage on the ground, and not actual surgical strikes. There are going to be a lot of unhappy people losing their money, but the outcome for the global markets are going to be the same, if that's where it happens.

PHILLIPS: All right, news of the day, I want to get you both to comment on this, this article coming out in "The L.A. Times."

Jim, it's about Tehran leadership and al Qaeda leaders working together. The article actually says, "Iranian regime playing host to much of al Qaeda's remaining brain trust and allowing the senior operatives freedom to communicate and help plan the terrorist network's operations."

What do you think about what's coming out of "The L.A. Times" today?

WALSH: Well, I haven't read the article, but, I must say, at first blush, I'm rather skeptical.

You know, we have had a series of these reports. Haven't had one in a while, but we had U.S. complaints that Iran was holding al Qaeda members.

When I was in Iran just a couple of weeks ago, what I was hearing from Iranian officials and others was, they fear al Qaeda. Remember, al Qaeda is a Sunni extreme group that has assassinated Shiite leaders, has bombed Shiite mosques. So, to the extent, if any, that Iran -- some Iranian officials might be doing business with al Qaeda, they are putting themselves at tremendous political risk, internally, as well as externally.

PHILLIPS: The article even suggests that the president, Mahmoud Ahmadinejad, may be forging an alliance with al Qaeda operatives.

Ian, what do you think?

BREMMER: Yes, Jim is right. It's ridiculous, for the reasons he suggested.

But there's an important political point here, which is that, as increasing pressure grows on Iran and increasing support for escalation from within the United States and from Israel, you're going see efforts to tag and tar a lot of things to the Iranian regime. That process happened with Iraq.

There are a lot of legitimate things you can criticize the Iranians for -- and, believe me, a lot of people internationally are doing it -- but this isn't one of them.

PHILLIPS: Ian Bremmer with Eurasia Group, Jim Walsh, analyst with MIT, gentlemen, great conversation. Thank you.

WALSH: Thank you, Kyra.

PHILLIPS: Well...

BREMMER: Pleasure.

PHILLIPS: ... they called him the King. And his kingdom came alive at night. A new exhibit shows a few of the things that Elvis Presley would do when the sun went down.

Wait, that's a Kenny Chesney song.

We will shed some light...

(MUSIC)

PHILLIPS: ... when LIVE FROM returns.

(COMMERCIAL BREAK)

(MUSIC)

PHILLIPS: Well, if you spent your days as one of the biggest stars in the world, how would you spend your nights? Elvis After Dark shows what the king of rock 'n' roll did. The new exhibit opened yesterday near Elvis Presley's Graceland home in Memphis.

Among the King's antics, taking a shot at one of many TVs his record company gave him. And, if you wonder how this gets us to the business guy, well, let me point out that Velshi is...

(LAUGHTER)

PHILLIPS: ... an anagram of Elvis, plus an H.

Ever notice that, Ali?

ALI VELSHI, CNN CORRESPONDENT: Oh, yes.

(LAUGHTER)

VELSHI: That's pretty good.

That -- I -- I wonder if I can somehow parlay that into making some money, because nobody actually would pay money to see an exhibit of what I do at night.

PHILLIPS: No, I wouldn't be so sure. You have got quite a fan club. We get the e-mails. I read them.

(LAUGHTER)

VELSHI: Oh, is that right?

PHILLIPS: Yes.

VELSHI: Send some of those my way.

PHILLIPS: You want me to -- OK.

VELSHI: Velshi: It's Elvis, just mixed up.

(LAUGHTER)

PHILLIPS: OK.

VELSHI: There's a lot of money in this business, though -- for Elvis, not for me.

You know that about a half-million people go through Graceland every year? And this company that owns Graceland -- this used to be Lisa Marie Presley. And she sold it. The family sold it in February to a guy name Robert Sillerman. Now, Sillerman also owns "American Idol." He goes around and buys these revenue-generating things.

But all of this Elvis stuff generates about $40 million a year. That's Graceland, the tourists through it, the Heartbreak Hotel, a 128-room hotel across from Graceland, the licensing, the movies, that kind of thing.

As you know, Kyra, the Elvis music library, that was sold. Michael Jackson was a part owner of that with Sony. So, they don't get the revenues from that, but about $40 million in the Elvis stuff tours business, a lot of people look at that and say, it's not enough. This has not grown for a long time.

And, you know, everything that is old is new again. So, expect to see some more action, more activity in the world of Elvis in the next few years, particularly now that Sillerman is involved.

PHILLIPS: Have you ever been there, to Graceland?

VELSHI: I have never been to Graceland.

PHILLIPS: OK.

VELSHI: I always wanted to go.

PHILLIPS: You have to go.

My mom and I were making a road trip. And we were driving through. And we looked at each other: "Should we stop? Should we stop? Nah."

Once you get there and you see this just...

(LAUGHTER)

PHILLIPS: ... just place after place, and it -- it's just -- you have to stop. You have to stop, because it's so amazing.

VELSHI: Well, the -- here's the thing.

Apparently, the experience is so good, that that's what makes people think that there should be more Elvis stuff going on, not just the music being played. And people are going to get this kind of experience all over the place. There's some talk that -- that Sillerman might build Graceland replicas in other places. And there's talk of an Elvis casino in Vegas, which would make....

PHILLIPS: Oh.

VELSHI: ... a lot of sense.

PHILLIPS: That would be -- that would be fun.

VELSHI: Yes.

PHILLIPS: It's just so outlandish, you can't believe t.

VELSHI: This is what sells.

(LAUGHTER)

VELSHI: I mean, it's kind of interesting that Michael Jackson bought, you know, half of the -- the rights to Elvis' songs at one point.

But that is the kind of stuff that attracts people. And, I mean, this was -- this was so big. And it was the kind of thing that kicked it off in Nashville, that there's some sense that there's just not enough being done with it. People talk about it the way you talk about it, but it has stayed steady. The amount of money that the estate brings in over the last years has stayed -- stayed steady, at about 40 million bucks. There's apparently a lot more money in this.

So, I guess it's long enough now.

PHILLIPS: Well, there's so much mystery.

VELSHI: It's a whole...

PHILLIPS: Yes.

VELSHI: Thank you. But...

PHILLIPS: You hear about all the stories of, you know, Elvis meeting with the Beatles in these rooms at night and talk -- things that they talked about...

VELSHI: It's -- it's fascinating.

PHILLIPS: ... and other unusual characters. Exactly.

VELSHI: This guy's story at every -- and -- and part of the -- the exhibit that is on now is sort of little windows into his life, you know.

But, when you think about it, Elvis' story, at different parts of it, are dramas unto themselves. And they're so big. And there are enough people now, Kyra, who are younger than us who didn't sort of grow up with it or know it as kids, that they can reintroduce this as a new -- a new thing for a whole new generation. And I think that's what you're going to see.

PHILLIPS: Interesting stuff.

Ali Velshi, all right, you have got to listen to this next story, this historic find, OK? Check this out. We will see you back at the closing bell.

VELSHI: Yes. I will see you in about half-an-hour, yes.

PHILLIPS: OK. Well, listen to one: color illustrations of Homer found in Cyprus -- not Homer Simpson, but the real-life long dead author of "The Iliad" and "The Odyssey." Ornate decorations were actually found on a 2,500-year-old limestone sarcophagus in a tomb on the western side of the island. Archaeologists found red, black and blue images on a white background, dating back to 500 B.C., when Homer's work was a big hit wherever the Greeks had influence.

They think the images depicts Ulysses and a battle between Greeks and Trojans.

Well, forget whodunit. The real questions are, who drew it and who signed it? Confusion surrounds an alleged Picasso scribble that recently sold for a penny less than $40,000 on the Costco Web site. Yes, I said Costco. But it turns out, the discounter was doubly duped. Along with the drawing, Costco provided a photocopied certificate of authenticity signed by Picasso's daughter. But "The New York Times" says the daughter insists that her signature was forged.

While Costco debriefs its dealer, it has offered the buyer a full refund.

Get out of town: That seems to be the motto in Congress this year. The halls and seats are empty. What the heck is going on?

LIVE FROM looks for answers -- coming up.

(COMMERCIAL BREAK)

PHILLIPS: They fight, spend, sacrifice -- anything it takes just to get to Washington, then they can't wait to leave. Members of Congress are spending less and less time in the District of Columbia and more and more time in their own districts, or elsewhere. But who's counting?

Our Bob Franken, of course.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Pursuant to that concurrent resolution ...

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): Instead of St. Patrick's Day, Congress decided to honor St. Patrick's week at home this year, or at least not in Washington. And this holiday should not be confused with spring break. That's next month. They'll take off for 11 days.

When they return, they can look ahead for a few extended weekends and the mack daddy of holidays, the August break, traditionally, the whole month of August to beat the heat. Now there's air conditioning, but it still means August somewhere else.

UNIDENTIFIED MALE: I guess.

FRANKEN: And we don't call them breaks, if you please. They're district work periods. That's because members are in their districts working, mingling with constituents, stuff like that. Republican Frank Lucas was holding a series of town meetings Monday. He tries to do more than 50 a year. But others use some of the time to travel, far away, courtesy of the taxpayer or somebody.

So far, the House has been in session a grand total of 19 days this year, the Senate 33. Congress is scheduled to adjourn on October 6th. That would total only 97 days in Washington, although leaders stay it will end up being more like 120. President Truman's do- nothing Congress did it in 108 days.

(on camera): And perhaps there's another reason that the members so badly want to be back home in their districts. Could it be because it's an election year? Could be.

Bob Franken, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Straight to Betty Nguyen. She's working a story for us in the news room right now -- Betty.

BETTY NGUYEN, CNN ANCHOR: Yes, this just into CNN. State prosecutors have decided to drop charges against a former Tampa teacher accused of having sex with a 14-year-old middle school student. There is the woman, Debra LaFave. You may recall her.

She is having a news conference right now, but this decision comes hours after a judge rejected a plea deal that would have meant no prison time for Debra LaFave. Now, the prosecutor's decision means she will not go to trial and the victim, the 14-year-old, will not have to testify.

The prosecutors, the defense attorneys, and the boy's mother really wanted to avoid trial for the teen's well-being because the case had received such intense media coverage. Let's just take a listen to what Ms. LaFave has to say today since these charges have been dropped.

UNIDENTIFIED MALE: ... factors that would have discussed in great detail Debbie's illness, the impact that this illness has on young women and people in general, and I think it would have been a very compelling story, and -- because mental illness is not the fault of someone who suffers from it.

No one wants to be mentally ill or have an illness and now that Debbie is getting the treatment that she needs, she's doing well.

(CROSSTALK)

QUESTION: Are you going to get married, are you going to live with him?

DEBRA LAFAVE, FMR. FLORIDA TEACHER: I think that right now, we're taking it one day at a time. And his support is unconditional, and I've known him for 20 years now and he's proved that he loves me unconditionally and we're just going to take it day by day. (CROSSTALK)

QUESTION: ... was claiming you violated your probation. Can you address that?

LAFAVE: I think -- you know, I think that -- I pray for her. That's all. I pray for her.

QUESTION: Debra, were you nervous when you were going through trial and you were thinking that you were going to (INAUDIBLE).

LAFAVE: Yes, I was very nervous. I have a lot of things in my past that have, unfortunately, became public and it's very hard to talk about sensitive issues that have happened as a child and so on.

QUESTION: I understand (INAUDIBLE).

LAFAVE: We're not going to comment. I don't see children, period, that's in my plea agreement.

QUESTION: Debra, there's some people in the media that have vilified you. Would you like to respond to that -- that have called you a monster and a predator?

LAFAVE: Right. I believe that my family know who I am and right now my family and my friends are all that matter. And as you can see, the room is full of media outlets. I'm sorry, but it doesn't matter to me. The people behind me is what matters to me.

QUESTION: Debra, do you think because you are so attractive, that that had anything to do with the case personally? Everybody has been talking about it. I mean, do you think your looks ...

UNIDENTIFIED MALE: I think we'll leave that to all of you to decide that. Why you're here.

QUESTION: Do you ever plan on doing any interviews with national magazines like "Vanity Fair," magazines like that?

LAFAVE: That's not where -- that's not my -- that's not where I want to go. I want the world to see that bipolar is real. If anything, I am tired of the media. I don't think not one time has the media brought up the subject of my bipolar, and I challenge you to read a book or an article on bipolar illness.

QUESTION: What are your plans for the future? If teaching was your passion and you can't do that, what will you do with your life?

LAFAVE: Right now, I'm going through a class that's online for journalism. I think that I have -- God has given me a great outlet to write and I would hope that I could reach people through writing.

QUESTION: Well, after all of this, you plan to (INAUDIBLE).

LAFAVE: Yes, because, you know what? And Shannon (ph) being one of them, some of you have a great heart and I am able to see that through your writings and through your expressions on TV, so yes.

QUESTION: Do you want children? I mean, when you get married, do you want to have children?

LAFAVE: I think that's every woman's dream.

QUESTION: Including yours?

LAFAVE: Including mine.

QUESTION: Debra, what do you think about the double standards, if you were ...

LAFAVE: I don't think there is one. I think we all should check the statist and I don't think there is a double standard.

QUESTION: How about your (INAUDIBLE). How's that been? What's it like for you?

UNIDENTIFIED MALE: We probably don't want to get into too much. It's challenging. Debbie has done very, very well. She respects the process. She reports frequently to her probation people, and she does have her bracelet, and I expect she's going to do very well over the next couple of years on this program.

NGUYEN: And you've been listening to a news conference held by Debra LaFave and her attorney. As mentioned a little bit earlier, Debra LaFave has received -- actually, state prosecutors have dropped the charges against her. She was accused of having sex with a 14- year-old, and as we heard in that news conference, she talked about bipolar illness and that she is getting treatment for that.

She also says, Kyra, that she's taking a course in journalism and she hopes to reach people through writing. That's the latest.

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

The news keeps coming. We're going to keep bringing it to you. More LIVE FROM right after this.

(COMMERCIAL BREAK)

PHILLIPS: Don't you just hate it when an airline loses your luggage? You're not alone, far from it actually. An industry study estimates that airlines will lose 30 million pieces of luggage this year. Last year, more than 200,000 bags never made it back to their owners. The problem costs the airlines $2.5 billion a year. A cool fine from the cold war.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And then these are the syringes that they were going to use from the -- this is a Dextran, yes, that's that -- and if you see, it says 1957.

We went online, people used to use this after burns, if they got burnt. So we can only assume that they figured people were going to get burned in a nuclear attack and then they had to replenish their liquids. But you see it says January 2nd, 1957.

(END VIDEO CLIP)

PHILLIPS: Workers inspecting the foundations of the Brooklyn Bridge stumbled into a stock pile meant to help New Yorkers survive a nuclear attack. The stash includes water drums, paper blankets, medical supplies and crackers. Lots and lots of crackers, actually. They're in cans that come with instructions to consume 10,000 calories a day per person. So how does a four-decades old cracker taste?

CNN's Jeanne Moos found out.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: So these crackers are 44-years-old. They were made in 1962.

JEANNE MOOS, CNN CORRESPONDENT: They don't smell great. What year do we think they are?

UNIDENTIFIED FEMALE: Sixty-two.

MOOS: Sixty two. Cuban Missile Crisis, should I? Well, this probably is going to get me faster than the radiation would have. It's all right. Would you care for one?

UNIDENTIFIED FEMALE: No, thank you, I've already had lunch. What's it taste like?

MOOS: Well, you know, it tastes like a really lousy stale cracker that's been here for about 40 years. Anybody else? I can't believe you, big strong man. We'll be hospitalized together tonight.

UNIDENTIFIED FEMALE: Exactly. That's the worst tasting cracker I've ever tasted in my life.

(END VIDEOTAPE)

PHILLIPS: Well the crackers and some of the other items will go to a civil defense museum.

A man without a country, so to speak. The highest court in Kuwait rules that a man who underwent sex change surgery can't officially be recognized as female. The he became a she in Bangkok and later petitioned for the new status at home. Islamist lawyers and political activists fought it, saying such operations were immoral.

A Pennsylvania woman sells her son-in-law, not for a new reality show, it was all a terrible accident. Now did I mention the man is deceased? Pennsylvania's "Pocono Record" reports that the man's ashes were inside this unmarked urn. But when his widow held a moving sale, her unwitting mother sold the urn for 30 bucks. Well that led to this ad. "Attention: Woman who bought Eagle with a base." The buyer was found, the ashes have been returned. Eight days at eighty feet in the water, what would you do? Yes, that's what we may say, might as well jump. But LIVE FROM always lands on its feet, just like that little guy. Stick around for proof.

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PHILLIPS: Caution cat lovers: this footage may give you palpitations, but don't worry. It has a happy ending. Cat up in a tree, nothing new, but get a look at the upshot. Yow. Here's the back story. Piper scaled the 80-foot tree eight days ago. Even though the owners called in the fire department, Piper took matters into her own paws. She's reportedly doing just fine.

One of the best known cats in Britain has passed away. Humphrey wandered into Number 10 Downing Street in 1989, when Margaret Thatcher was prime minister. In the best British tradition, they put him to work and gave him the title "chief master to the cabinet office." In later years, he live a quiet retirement, and according to Number 10, developed kidney problems. Humphrey died last week at the home of a staff member. He was thought to be 18.

Some thieves go after cash, others jewels; still others apparently, marmosets. A whole colony of black-eared marmosets was stolen the other day from the Exmoor Zoo in Devon, England, along with several exotic birds. Zookeepers want them back, of course, but they're especially worried that a pair of baby marmosets, 4-week-old monkeys no bigger than your thumb, might not survive their whole ordeal.

Let's go straight to Betty Nguyen with a developing story now in the newsroom -- Betty.

NGUYEN: This is quite an amazing story. A family from Ashland, Oregon, went missing on March 4th. It's been over two weeks now. They were -- they took off in their motor home and then, what we understand, took a wrong turn and got stuck in the snow. But they have been found alive.

We have on the phone Deputy Dwes Hutson with the Douglas County Sheriff's Department to talk about exactly what happened here and how you were able to find this family.

Let's start with that first. How did you find them?

DEPUTY DWES HUTSON, DOUGLAS COUNTY SHERIFF'S DEPT.: Well, they were found by an employee of the Medford Bureau of Land Management office earlier this morning. Apparently they were attempting to walk out and he came across them.

NGUYEN: So what happened? Did they just take a wrong turn, as the information that we're reading on wire reports?

HUTSON: Well, at this point in time, of course until we talk to them, we won't know. So we're not sure if they just became stuck in the snow by taking a wrong turn or what happened. You know, we have had some adverse winter weather conditions here past few weeks and my understanding is that that area where they're at is -- has got quite a snowpack from the winter storms.

NGUYEN: Now if a family of six, two grandparents, the parents and two children, have all of them been found alive?

HUTSON: Again, this is preliminary information received from the DLM office in Medford. What we have been told by them from their employee is that two of the family members were contacted by their employee, and that the other family members were alive.

NGUYEN: We're looking at some video of the snowfall there. There has to have been some very difficult times there for these family members with a couple of weeks there, sitting stuck, possibly in this snow with the conditions outside. Can you tell us how difficult the conditions have been?

HUTSON: Well, they went missing March 4th and since that time, we have had several significant storms here in this area that have dropped a significant amount of snowfall in the upper elevations.

NGUYEN: Yes, looking at that right now. But the good news is, from what we understand, with the preliminary information that you're getting, deputy, is that this family has been found alive -- alive, that is, after been missing for about two and half weeks now. We're going to continue to follow this. Thank you for your time, deputy Dwes Hutson of the Douglas County Sheriff's Department.

Kyra, this is quite an amazing story. I'm sure that they have plenty of stories to tell from their experience.

PHILLIPS: No doubt. Betty, thank you so much.

Time now to check in with CNN's Wolf Blitzer. He's standing by in "THE SITUATION ROOM" to tell us what's coming up at the top of the hour.

Hi, Wolf.

WOLF BLITZER, CNN ANCHOR: Hi, Kyra.

You're going to like this show. The White House reporter Helen Thomas has covered every president since John F. Kennedy. Today she took on President Bush, and she'll be my guest, live here in "THE SITUATION ROOM," to talk about her blunt exchange with the president.

And Mr. Bush is grappling with his slipping support for his handling of the situation in Iraq. Are the news media to blame as administration supporters are claiming? We're going to go in-depth.

And Clinton versus Clinton. Are the power couple's offices competing for control of the media spotlight? We're going to bring you the inside story.

Kyra, all that coming up right at the top of the hour here in "THE SITUATION ROOM."

PHILLIPS: Wolf, are you ready for Helen Thomas? BLITZER: I am. I've been practicing all day.

PHILLIPS: What if she throws some tough questions at you?

BLITZER: I'm going to ask the questions, she's going to give the answers.

PHILLIPS: How do you know? She's tough.

BLITZER: I know. She might ask me some questions, too. You're right.

PHILLIPS: Are you prepared?

BLITZER: I spent a lot of time covering the White House with this woman. I know her.

PHILLIPS: You know her well. That's why you have the interview.

BLITZER: That's right.

PHILLIPS: We look forward to it.

BLITZER: Thanks, Kyra.

PHILLIPS: All right, Wolf. LIVE FROM is back after a quick break.

(COMMERCIAL BREAK)

PHILLIPS: Well, the Chicago White Sox may have won the World Series, but Japan takes the first World Baseball Classic. Japan clinched the title and the trophy last night, beating Cuba 10-6. Cuba almost didn't make the tournament. The Bush administration refused to let the team into the country, then changed its mind. As for Team USA, those Major Leaguers didn't even make it to the semifinals.

Ever fit over the last piece of pizza? Well, that's not going to happen if you call Mama Lena's in McKees Rocks, Pennsylvania, and order "the big one." Mama's going for the Guinness Book of World Records for the world's largest commercially available pizza, 3 feet by 4 feet, 154 slices, for $99. And make sure you call ahead. It takes about 15 minutes to put all the fixings on the dough and almost a half an hour to bake it.

Retreat seems to be the word on Wall Street. Ali Velshi here, just ahead of the closing bell.

Let's see, we talked about...

ALI VELSHI, CNN CORRESPONDENT: That pizza is more interesting than...

PHILLIPS: But that's what I was thinking. You're the big KFC guy. You're talking about fried chicken yesterday. Now all of a sudden you're saying pizza? But then again, you live in New York. VELSHI: I eat a lot of junk food. I can eat all sorts of stuff like that.

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