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Outgoing CIA Director Receives Distinguished Service Award; Iranian Letter Slams President Bush; Twisters Kill Three in Texas

Aired May 10, 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: The president of Iran again irritating the White House, not with what he says or does, but what he writes. That letter this week from Tehran to a certain Pennsylvania Avenue address, well, it slams democracy and even President Bush personally.
Even so, analysts are still looking for a message between the lines.

CNN's Brian Todd breaks it down.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Mahmoud Ahmadinejad starts right in on George Bush's Christian beliefs, all but accusing his American counterpart of being a hypocrite. "Can one be a follower of Jesus Christ, feel obliged to respect human rights, announce one's opposition to the proliferation of nuclear weapons and WMDs, make war on terror his slogan, but, at the same time, have countries attacked, the lives, reputations and possessions of people destroyed?"

TRITA PARSI, IRAN ANALYST: He's basically trying to show that he is not in a morally inferior position vis-a-vis the United States and vis-a-vis President Bush.

TODD (on camera): Ahmadinejad mentions Jesus Christ 10 times in the letter, Saddam Hussein three times, calling him a murderous dictator. But he doesn't mention his own nuclear program by name.

(voice-over): Instead, writing: "In what other point in history has scientific and technical progress been a crime? Can the possibility of scientific achievements being utilized for military purposes be reason enough to oppose science and technology altogether?"

AZAR NAFISI, JOHNS HOPKINS UNIVERSITY: This letter is very timely. It comes right on the eve of when the U.N. is going to make decisions about Iran. And -- and this is to delay those decision, or to confuse.

TODD: Later, a reference to September 11, calling it a horrendous incident, but then implying that unnamed governments might have sponsored the attacks. And the American government, he claims, has reached an ideological dead end -- quote -- "Liberalism and Western-style democracy have not been able to help realize the ideals of humanity. Today, these two concepts have failed." Throughout the letter, references to a belief in one God. Analysts say this is to establish common ground with Bush and their faiths.

And:

NAFISI: He's obviously also targeting the audiences in Muslim countries and coming out as the leader of the faith.

TODD: Ahmadinejad signs off with the phrase in Arabic, "Peace be upon the one who follows God's guidance," but at no time does he directly or indirectly invite President Bush to talk.

Why not? Analysts say that was not the Iranian's intent. This letter, they say, was to preach to President Bush, to play to audiences back home, and to not be seen as begging for negotiations.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Severe weather warnings in several states. Take a look now at the time-lapse video from Birmingham, Alabama. You can see how quickly this powerful front was moving.

We actually, when we first took this shot, Reynolds Wolf, you may remember, it looked pretty mellow. Then, boom, it got pitch black and then light right up again. Of course, it almost happened this fast, because we were monitoring it within about a 15-minute period.

REYNOLDS WOLF, CNN METEOROLOGIST: Right.

That's no exaggeration. It did move through very quickly. Obviously, this has, you know, been sped up considerably, but it really did. It was a very rapid transition, going from the sunshine to the darkness, with the showers moving through.

Take a look at this live image of the -- the same camera, high atop Red Mountain, looking to the north. You will notice something that we do not want to see, Kyra, and that is the sunshine. You will notice some sun that's popping through the cloud cover, and the reason why that's a bad thing is because that's going to help things begin to heat up once again.

Now, as we go back to the weather computer, what I want you to notice is, we have that one line that moved through Birmingham. Then, the sun comes out. Things begin to heat up again. Then you have the second line that moves through. So, what that's going to do, that little bit of sunshine can add to the instability. So, when the second area comes through, the second line of showers and storms, those could also intensify, so, Birmingham could see a second dose of the -- the strong wind, the rain, the hail, and, already, from Alabama back over to Arkansas, we have had reports of all kinds of storm damage, namely toppled trees.

We have got hail reports, also downed power lines. And, at this time, we also have not only these severe thunderstorm watches shaded in yellow, but we now have three tornado watches that are in effect for southern and central Alabama, parts of Mississippi, and into Louisiana and extreme Eastern Texas.

Let's move in very quickly in a few spots and show you who is getting what at this time, namely, parts of Alabama, obviously, the strong activity right along I-65 and I-20. We did have a tornado warning earlier over near Meridian, Mississippi. That has since expired.

We also have one up near Louisville, not a tornado warning, but, again, some -- some very strong storms.

Just have some information that just came in. Thank you, Wendy?

A tornado now in effect in Sumter County in west central Alabama. So, what I'm going to do, folks -- bear with me just a moment. I'm going to zoom just back over towards west central Alabama.

What we are talking about, that would be right along I-20. This individual cell that is driving off towards the east at about 15 miles -- I'm sorry -- rather, about 40 miles per hour, is going to eventually be moving through places like Tuscaloosa.

We are going to get more information on this. And we are going to be back to give you an update very soon.

Kyra, let's send it back to you.

PHILLIPS: All right, Reynolds, thanks so much.

WOLF: You bet.

PHILLIPS: Well, the twisters hit fast, with little or no warning, as Reynolds just said, but in parts north Texas, the damage is still sinking in. Three people are dead, 10 hurt, in a landscape littered with the remnants of home.

CNN meteorologist Rob Marciano joining us now from the town of Westminster.

And I see you're at the same home, Rob, where you were before. These people actually survived what happened here. But I never had a chance to ask you, were they in the house? Were they hiding in a certain part of the house, or did they get out before the home was leveled?

ROB MARCIANO, CNN METEOROLOGIST: Well, you know, up until about 10 minutes ago, we didn't know.

But the -- the son and brother of the woman that lives here just pulled up. They prefer not to talk to us, understandably. They are shaken up and just want to kind of go through the rubble, but -- on camera.

But they did enlighten us as to what happened. And -- and the -- the -- the couple that lives here, one of their sons is a ham radio operator and storm spotter, and so saw this storm coming and -- and got on the horn with -- with his folks and say, hey, this tornado's coming your way. Take cover.

And they got into the pantry, which I'm not sure where that is. I showed you the bathroom earlier. The pantry probably somewhere around here -- and that's where they took cover. And then -- and then the house literally blown to pieces in this direction.

And if you haven't seen these pictures yet, it's -- it's hard to comprehend the damage here. This is a well-built home. This is not a mobile home. This is not a trailer. This is not a manufactured home. And it's a -- it's a new home as well. It's new construction.

They just got finished building this. Injuries? The mother's badly bruised, but she was released from the hospital and staying at the -- at her son's home. The -- the gentleman had a very bad cut on his forearm. He's still hospitalized, but expected to recover.

Unbelievable to think that that -- that that -- after this, they survived.

I want to point out a couple of things that I learned last time I was out with a -- a National Weather Service storm surveyor, is this construction, brand new, and -- and these two-by-fours are bolted to -- to the concrete foundation.

So, that's a good sign. The only weakness that he would point out is that -- is that then the floor -- the wall studs are -- are actually nailed, as opposed to braced. If this thing was really, really hammered down, it would be braced.

But, nonetheless, this has to be a very, very strong tornado to see a structure like this literally blown to pieces.

All right, now, look at this vegetation. See how it's kind of all heading towards -- up towards the camera. Well, that's that's the direction the wind was blowing. The vortex of the storm literally came right over this area.

If you look out towards the -- towards the west, towards those trees, you can see debris kind of going the other way. We are literally standing right in the center of a vortex, and, obviously, the strongest part of the storm, and this is what you see.

Behind us is another home that was devastated, family members and friends there trying to search through the rubble and pile up the debris, so that the people that own the property can go through and pick out the personal belongings.

That's the latest from here, Kyra -- back over to you.

PHILLIPS: Rob, thanks.

That's where the storm has already passed through. And now we're getting word, Rob, that Reynolds Wolf is getting word of another tornado warning in Alabama -- Reynolds.

WOLF: Absolutely.

We're talking about, let's see, Sumter County in west central Alabama, let's see, includes the area of York and a community called Livingston. This warning will be in effect until 2:30 p.m. Central time.

Now, here is where it's located. You're looking at an image on one side of the screen, which is in Birmingham, where skies are partly cloudy now. It's going to get sunny. Then we have got a second line of storms that will move through.

But what we're concerned at this time is back here on radar. Again, Sumter County. And you just see a little bit of a hook right here. That's what we look for. That's a signature mark that indicates rotation, rotation, which would indicate a tornado, theoretically.

But, at this time, we don't have any visual confirmation. This is just the signature that we look for on Doppler radar. And we are going to see this rotating storm move towards the northeast. And it's been doing so -- folks, this is not a misprint -- moving to the northeast at 95 miles an hour.

So, these storms are booking right through parts of central Alabama. And this is just one swathe of the rain that we're getting, the showers, the storms. We have another line that's still moving through parts of northern Mississippi at this hour.

We have some severe-thunderstorm warnings in north Alabama, right along the Alabama/Mississippi line. But, again, we're going to be seeing many of these pop up in other places, mainly through central Alabama and north Alabama into the afternoon hours.

And that does not include the tornado watches that we have through portions of Mississippi and also back over towards Louisiana, where we don't see a great deal of development yet. What we're waiting for is more daytime heating, for the front to kick in, and, then, of course, the low-level jet stream.

So, we have got a long, long afternoon and long evening. And we're going to seeing more of these warnings pop up, there's no question -- back to you.

PHILLIPS: All right, Reynolds Wolf...

WOLF: You bet.

PHILLIPS: ... thank you so much.

Porter Goss now, the embattled outgoing CIA chief, Dick Cheney, the often embattled vice president, well, they have got more in common than that embattled stuff. They have both enjoyed relatively sunnier days as members of the House of Representatives. Now their service is being recognize in Congress. We are going to tell you about that award in just a second.

Let's listen to Porter Goss live.

(JOINED IN PROGRESS)

PORTER GOSS, CIA DIRECTOR: ... serve at the place where I actually began my career in public service, the Central Intelligence Agency.

The men and women of CIA are extraordinarily talented. They are extraordinarily dedicated officers. And I'm very proud to have served with them. They are doing amazing work for our country and its well- being and our citizens at home and abroad. And I ask for your continued support of their critical mission on behalf of our nation's security.

I have often thought about the things I miss most -- and least -- about the Hill. One of the things I don't miss are the Rules Committee's odd and unpredictable hours.

I must thank Chairman David Dreier for his innovative ways of convening meetings and keeping us operating on California time, although I don't think I appreciated it at the time.

(LAUGHTER)

GOSS: And I can't say that I miss much the crowded, windowless and bathroom-less office spaces that used to make up the HPSCI suite, where I spent so much of my time.

But mostly what I remember are positive things, like my friendship with the speaker and the leader and everybody else on down the line.

I have very fond memories of working as part of a close and bipartisan Florida delegation. We got an awful lot done together and they were good times.

And, of course, there are my HPSCI friends. The ranking members stand out as good colleagues, Norm Dicks, the late Julian Dixon, Nancy Pelosi, of course, and now Jane Harman, ranking, so many Western and California types who were tolerant to their token East-Coaster.

I miss them all and all the members of the staff in HPSCI, but I'm glad to see my old committee is in the very capable of hands of Peter and Jane. God bless you and keep up the good work.

As I said, I'm quite honored....

PHILLIPS: We're listening to outgoing CIA Director Peter Goss (sic), as he is -- sorry about that -- Porter Goss -- as he's about to receive a Congressional Distinguished Service Award.

Why is this interesting to us? Because, as you know, within the past week, he has resigned as CIA director. General Michael Hayden has been appointed by the president to be the next man to fill his shoes, if, indeed he is confirmed.

So, what is this award? Why is he getting this award?

And we want to take a little closer look at the irony of what's happening today.

Our congressional correspondent, Andrea Koppel, joins me now with that.

Andrea, do you want to begin maybe by explaining exactly what the Congressional Distinguished Service Award is? And then maybe we can move into the controversy surrounding -- or at least the talk, what critics are saying about the fact that Porter Goss is getting this award.

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Well, Kyra, all of this -- this award has really only been around for a few years. It was created by the speaker of the house, Dennis Hastert, and the then minority leader -- the Democratic minority leader, Richard Gephardt -- actually, I think he might have been the majority leader back then.

So, it's really -- it's only -- it's only a few years old, and it's meant to honor former congressmen who have distinguished themselves in public service. And Porter Goss is one of those people that they have selected. There are two Democrats and two Republicans.

Porter Goss, of course, we know him now as the outgoing head of the CIA, but, for 15 years, he was a Republican congressman from Florida. And he was also the chairman of the House Intelligence Committee. So, you know, what you have right now, Kyra, is what is pretty much an awkward day, I think, for both Porter Goss. And it's a day when he's being honored.

But at the same time that he's being honored over in the House, here, where I am in the Senate, you have got the man who has been nominated to replace him, General Michael Hayden, who has been making the rounds, knocking on senators' doors, trying to win confirmation, when those hearings take place next week.

So, it's -- it is a day in which -- certainly, when they planned it, they didn't expect Porter Goss to be leaving the Central Intelligence Agency. But, when they picked him, when Dennis Hastert selected him, he wanted to single him out as somebody who had done a lot in his in his -- in his career, both in the House and since he left, and even before, when he was in the CIA.

PHILLIPS: Andrea Koppel live on the Hill -- Andrea, thank you so much.

We're going to take a quick break -- more LIVE FROM right after this.

(COMMERCIAL BREAK)

PHILLIPS: Back now to Rhode Island, where the former band manager who set off the fireworks that led to the catastrophic nightclub fire in 2003 is about to be sentenced.

CNN senior correspondent Allan Chernoff is in Providence with more -- Allan.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Kyra, the defense attorney for the band manager is now arguing that the manager should not be sentenced to jail at all, that he should only have a sentence of community service, and he's arguing certainly not the sentence of 10 years in prison, the maximum under the plea deal. The band manager did plea guilty to 100 counts of involuntary manslaughter.

Remember, 100 people died in that horrific nightclub fire more than three years ago. The prosecution has argued that 10 years is certainly quite a lenient sentence, and that's what the judge, they are arguing, should actually sentence the band manager to. But the defense attorney has said, this is a tortured man, the band manager is.

They are saying he is the only person here accused who has had the courage to say: I made a mistake.

They have said that others who bear responsibility have absolutely not done that, including the club owners, who will be facing trial later this year -- so, a very tough decision that the judge will be confronted with. And we're expecting the judge to make a decision later this afternoon -- Kyra.

PHILLIPS: All right, if it happens soon, we will take it live with you, Allan. Thank you so much.

Parental outrage and official anguish after an 8-year-old girl is allegedly assaulted by classmates at her St. Louis school. To make matters worse, the reported attack took place while two teachers were supposed to be supervising.

Reporter Olga Breese is with our affiliate KPLR. She has more on the lingering questions.

(BEGIN VIDEO CLIP)

CREG WILLIAMS, ST. LOUIS PUBLIC SCHOOLS SUPERINTENDENT: Obviously, we're distraught that this has happened, and it's an unfortunate thing that it's happening in this school.

OLGA BREESE, KPLR REPORTER (voice-over): St. Louis school superintendent Creg Williams is aggressively investigating the alleged assault of an 8-year-old girl last Friday at Columbia Elementary School. He says a first of first- and second-grade boys attacked the students, while dozens played at recess.

WILLIAMS: Just the mere thought that this is in a young boy's mind at the age of 5 or 6 leads us to know that we have greater problems than we can deal with in any of our schools.

BREESE: I spoke with a concerned mother who was unaware that the incident had taken place. She requested anonymity, but wanted to voice her opinion.

UNIDENTIFIED FEMALE: Just to know that's going down, it's kind of like really scaring me, and it's got my heart like really jumping, just to know that a kid can even do that, or even if an adult even came out here, because we're like more fears of an adult trying to sit there or sexually assault our child than kids doing it.

BREESE: A letter will go out to parents.

At the time of the attack, two teachers were assigned to supervise the playground activity. It's been reported that another student who saw the commotion ran back and alerted an adult. This mother now questions the safety of her children.

UNIDENTIFIED FEMALE: If two teachers were out here, on grounds, I feel like my kids are not safe anyways with the teachers now, you know, if they couldn't inform and let everybody know what's going on, or, you know, be aware somebody is down here.

(END VIDEOTAPE)

PHILLIPS: And what about the alleged victim? We're told that she will not be returning to school for the rest of the year. The school superintendent says his department is doing all it can to help her.

(BEGIN VIDEO CLIP)

WILLIAMS: The little girl physically is doing OK. It's yet to be determined what kind of emotional scars could -- the young lady could go through. I spoke with the family. I have been in contact with the mother. The family's doing OK. We have offered counseling.

We have sent counseling to the family, and we will continue to make sure that counseling is available for the family, to ensure that this young lady will recover fully from what has occurred here at this school.

(END VIDEO CLIP)

PHILLIPS: Be sure to start your day with Miles and Soledad O'Brien each weekday on CNN's "AMERICAN MORNING," beginning at 6:00 Eastern.

Watching severe weather -- live pictures now from Birmingham, Alabama. We are going to stay on that story.

The news keeps coming. We will keep bringing it to you -- more LIVE FROM next.

(COMMERCIAL BREAK)

PHILLIPS: The Congressional Distinguished Service Award being given to a number of people today, one of them being Lindy Boggs. You may remember her, when she took the seat of her -- her husband, House Majority Leader Hale Boggs, when he was killed in a plane crash, and continued on to be quite a remarkable leader, also ambassador to the Vatican.

She's also the proud mother of Cokie Roberts. You may know her. We listen to her on NPR. She's also a television news commentator. We know her well in this business -- Lindy Boggs receiving one of these distinguished awards that was created by Speaker Hastert and Democratic Leader Gephardt to honor former members of the House who have performed their duties in an extraordinary way.

Let's listen in just for a few minutes.

(JOINED IN PROGRESS)

LINDY BOGGS, FORMER U.S. CONGRESSWOMAN: ... tragic disappearance. I represented the people of the district for 18 years, following my election in 1973.

We raised our children, Barbara, Tommy, Cokie, to respect and cherish this institution and our system of government. Now their children are raising my great grandchildren with these same values.

Much has changed in the world and in Washington since I first came here. Perhaps too much has changed. But one of the constants -- constants is this beautiful building and the dedicated men and women who work in it. I have a special request for you today. New Orleans and the Gulf Coast region suffered terribly last year, as a result of Hurricanes Katrina and Rita.

The American people and their elected representatives have opened their hearts and responded generously in easing the destruction and in relieving the suffering of the people who live there.

I deeply appreciate this, but much remains to be done. The Women of the Storm is a remarkable, dedicated group of New Orleans women from all walks of life. They came together to rebuild our community and our region. In January, more than 100 of them came up here to Capitol Hill to visit every office, to invite each member of the House and the Senate to visit them in New Orleans, and to see firsthand the breadth of the damage and the destruction.

PHILLIPS: Former Congresswoman Lindy Boggs receiving a Congressional Distinguished Service Award today, talking about her home there in New Orleans.

She actually has a home there on Bourbon Street. It suffered moderate damage from Hurricane Katrina, but was left still standing. She's being honored, along with a number of other leaders today there in Washington.

Well, congressional elections are six months away. Could tax cuts be far behind? Later today, the House is expected to pass some $70 billion in new breaks or extensions of breaks that would otherwise expired -- or expire, rather. Included are a two-year extension on a cut-rate tax on capital gains and a reprieve for roughly 15 million families at risk of that dreaded alternative minimum tax.

The Senate will likely sign off soon. Many Democrats accuse Republicans of catering to the wealthy at a time of record deficits and colossal spending on Iraq.

A roll of the dice, a spin of the wheel, and the built-in edge for the House, it all made for a pretty good march for Nevada casinos. The State Gaming Control Board says they took in just over $1 billion, the second highest monthly total ever. It was a good month for the state, too. It collected a record $92.8 million in fees.

Well, it's 5 percent, a nice round figure, falling flat on Wall Street today. Last hour, the Fed raised it's all important federal funds rate to a five-year high, after 15 previous rate hikes.

You know it all -- well, what it all means.

Ali Velshi, consumer spending fuels the economy. Can we afford to keep it up?

ALI VELSHI, CNN CORRESPONDENT: I -- you know, Kyra, you and I talked about this for a long time. I'm -- I'm still a little perplexed.

Look at this. You got high gasoline prices. You got mortgage rates going up, even though mortgage rates don't go up exactly the way the Fed rates go up, but mortgage rates are 6.66 right now percent for a 30-year fixed mortgage. So, you got those two things.

Why is it that, in a country where most Americans have -- you know, we know that we have a negative savings rate. The average American doesn't have any savings. So, anything you buy that is discretionary, all these extra -- all this extra money is borrowed, either from your home equity loan or your credit card.

So, where is all the money coming from to keep this economy going? In -- in past decades, when you have seen oil prices and gas prices spike the way they have spiked now, that has led to a recession.

Well, when you dig a little deeper into this, you realize, Kyra, the issue is that we are bifurcated in -- in -- in our society. In other words, people at the low end of the spectrum, the -- the cost -- increased cost of energy takes more out of their budget than it does for somebody at the high end, a higher-income earner.

And what's happening is, it's really hitting low-income earners hard. And high-income earners do have some savings, and it's not hitting them as hard. Now, -- now, the way you measure this, as a business reporter, is you look at those industries which really track how people spend discretionary, extra money.

You look at the restaurant industry. A restaurant chain like Morton's, The Steakhouse, say they feel no effect of higher interest rates or higher energy prices.

You look at a place like Applebee's. They are definitely feeling it, because their customer, a slightly lower-income customer, is not able to get to the -- the restaurant as often as they used to be. So, there is an effect. Even though it looks like there is no effect in the American economy, we are actually seeing this, and we do have to be careful of this, because as these -- you know, if you don't have extra money at the end of the month, and you are paying more to fill up your car and to pay -- pay your loans, it's got to come out of somewhere -- Kyra.

PHILLIPS: So, where -- where does it come from?

VELSHI: Well...

PHILLIPS: What does it come out of?

VELSHI: Well, we take more loans.

Remember in the day, when you took -- you know, you -- you put as much down payment on your house as you could, and then you paid that off, because you wanted to have that asset? I don't remember it, because it wasn't in my time. It was in my parents' time.

These days, you wait to see if your house value has gone up, because it's kind of a like a bank. It's like a piggy bank. You keep going in to get more money out of it. We don't save money as a country. And we constantly think that it will be OK. We will get out of this. And that's what happens.

Even though people are spending more on a monthly basis, they are borrowing more.

PHILLIPS: Well, we should be seeing a slowdown in spending, then.

VELSHI: Well, that's what...

PHILLIPS: How do you convince people to save more...

VELSHI: You know, that's what you should be doing.

PHILLIPS: ... spend less? But we're so lucky to live in the United States of America.

VELSHI: Yes.

PHILLIPS: I tell you what. You live in places like, you know, India, these other countries, it is unbelievable.

(CROSSTALK)

VELSHI: ... places where you can't grab credit as easily as you can here.

PHILLIPS: Right.

VELSHI: Here, you get in to a pinch, you call up the credit card company. They will happily, probably, increase your credit limit.

PHILLIPS: Yes. Then you owe them your life...

(LAUGHTER)

PHILLIPS: ... for the -- for the next 30 years.

VELSHI: That's what a negative savings rate is.

PHILLIPS: Sure.

VELSHI: That's exactly what it is.

If you add up everybody you owe, for most Americans, that's going to be pretty frightful. So, when interest rates go up, like they did again today, you know, it's probably a good time to go home, check your budget again, and make sure that you're -- you know, you are doing what you should be doing.

PHILLIPS: All right, Ali, my dear, we will talk to you as we get closer to the closing bell.

VELSHI: Yes. You know, I don't know if I'm going to have a record for you, Kyra.

PHILLIPS: No?

VELSHI: No. I don't think we are going to break it. The -- the Dow has been sort of flat all day.

PHILLIPS: No historic day? We have been talking about a historic day all day.

VELSHI: Yes, it's going to be a -- a long historic day. And tomorrow will be a historic day, too, I think.

PHILLIPS: All hype, no action.

Thank you, Ali.

VELSHI: That's what they -- that's what they call me for.

(LAUGHTER)

PHILLIPS: We will see you soon. Lots of action coming up with Ali closer to the end of the hour.

We will be right back.

(COMMERCIAL BREAK)

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