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Retaliation For Death of Zarqawi?; Al Qaeda Gaining Ground in Africa?; Zarqawi's History; Fact Check on the USS Cole Bombing

Aired June 08, 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: Hello, everyone. I'm Kyra Phillips at the CNN World Headquarters in Atlanta.
Taking out the most wanted terrorist in Iraq -- how U.S. forces finally caught up with Abu Musab al-Zarqawi.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Roll out, probably set our whip up, and pop. There would be the pickle right there.

UNIDENTIFIED FEMALE: And you got it in your sights, and then you dropped the ordnance?

UNIDENTIFIED MALE: Absolutely.

(END VIDEO CLIP)

PHILLIPS: Combat training mission over the Persian Gulf, precision, timing, execution. I will take you inside the cockpit of a strike fighter. See what it is like to drop that bomb.

The third hour of LIVE FROM starts right now.

Let's go straight to the newsroom. Carol Lin working a developing story on our breaking story today.

CAROL LIN, CNN CORRESPONDENT: That's right.

We got a statement from the FBI, Kyra, that gives us an idea what their role in this strike against al-Zarqawi is actually right now, and also what the dangers may or may not be right here in the United States as a result.

Now, the FBI, in releasing the statement, says that the FBI is closely working with the military intelligence partners to identify the remains of Abu Musab al-Zarqawi. In fact, they initially conducted fingerprint analysis. And they are going to be conducting DNA analysis at the FBI laboratory in Quantico, Virginia. They are waiting for DNA samples to arrive.

And, according to the statement, they are going to arrive today, also, that FBI agents have been in touch with all the field offices across the country to make sure that they are working with local law enforcement to review any ongoing investigations or intelligence, the FBI assuring in the statement right now that there is no specific or credible intelligence threat from the Zarqawi network or al Qaeda here in the United States, because, Kyra, as you have been talking with both military folks, as well as terrorism experts, the big question would be, would there be a retaliation strike? Is there anything planned right here in the United States.

And, according to the FBI, in this statement, they want to make it crystal clear that they see no credible intelligence as to a threat here in the U.S. -- the latest from the FBI.

PHILLIPS: That's good news. Carol Lin, thanks so much.

Capturing or killing al-Zarqawi was always on the list of U.S. priorities in Iraq, but military leaders say the benefit extends far beyond.

CNN senior Pentagon correspondent Jamie McIntyre joins me with that.

Hey, Jamie.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Hey, Kyra.

As big as killing Abu Musab al-Zarqawi is for the U.S. military and the Iraqi coalition forces, they say there's more that could come out of this strike last night as well.

First, let's take a look at where this happened. This happened in what was described as an isolated safe house out outside Baquba. We can see these videotapes from the cockpit video of an F-16. One F- 16 dropped both bombs, first a laser-guided bomb, followed by a satellite-guided bomb, while the other F-16 kept an eye on the target.

And Pentagon sources indicate that special forces on the ground were also watching the building to make sure that Zarqawi and his lieutenants did not leave. An Air Force official today said they had -- quote -- "100 percent certainty that Zarqawi was in the building when the bombs were dropped."

And there were no other buildings around. So, the F-16s were able to take their time in targeting. They obviously also dropped them, we are told, from a distance of four or five miles away, using those precision-guided munitions, so that nobody in the house would hear the planes overhead.

As soon as that strike was over, the U.S. and Iraqi coalition forces struck seven -- raided 17 targets around Baghdad that they had been watching as part of the intelligence gathering in this operation. And they say that could lead to a lot more intelligence that will help break the back of the insurgency.

(BEGIN VIDEO CLIP)

MAJ. GEN. WILLIAM CALDWELL, U.S. ARMY: And, in those 17 raids last night, a tremendous amount of information and intelligence was collected and is presently being exploited and utilized for further use.

It was -- I mean, it was a treasure trove, no question. And we had identified other targets we had previously not gone after to allow us to continue staying focused on getting Zarqawi. But now that we have got him, it allows us now to go after all these other targets we had been using in order to establish his movements, his patterns, his habits, and where we could find him, like we did last night.

(END VIDEO CLIP)

MCINTYRE: And, Kyra, why two bombs were dropped?

Well, they say -- Air Force officials say, take a look at the wreckage of this house. They say it was a reinforced, a very solid structure made of concrete, reinforced concrete. They dropped one 500-pound bomb. But to make sure that they got the people inside, they dropped a second 500-pound bomb on the same target, again, to make sure that they were able to get through the concrete and inside the house to destroy the target inside.

They say, also, now that there is virtually no doubt that Zarqawi and his spiritual adviser, Abdul Rahman, were both killed in this strike, they identified Zarqawi, both from his facial features, his fingerprints, identifying scars. But just to make absolutely sure, officials say they are going to do a DNA test as well. And they expect to have the results of that in 48 hours.

But they say, at this point, they have no doubt that Abu Musab al-Zarqawi is dead and will no longer be threatening the people of Iraq -- Kyra.

PHILLIPS: Jamie McIntyre -- thanks, Jamie.

Few in Iraq are mourning al-Zarqawi, at least in public. But few expect a sudden end to the bloodshed either.

Our Cal Perry is in Baghdad.

Cal, I know you have had a chance to talk to many Iraqis since it has happened. What are they telling you?

CAL PERRY, CNN CORRESPONDENT: Well, Kyra, as you said, the key question for all Iraqis, I think, is, will the violence stop? I spoke to an Iraqi friend of mine who lives here in Baghdad. He said, without question, today was a big news day.

Will it stop the violence? Six months from now, how will we remember this day? Will it just be another blip on the radar or a real turning point? That remains to be seen. Today really was like any other day on the streets of Baghdad. There were five bombings, more than 37 people killed, over 85 wounded.

We see this every day in Baghdad. We heard, just about an hour ago, that the -- the brother of the governor of the Nineveh Province was assassinated. These are the kind of attacks that we see day in and day out here in Iraq. And I think, for every Iraqi living in the country, the real question is, what impact will this have? Prime Minister Maliki, he really campaigned on the issue of terrorism. He promised to clean up the streets. Today's press conference was originally supposed to be about his new plan to secure Baghdad. We will have to see if he's able to follow through on that -- Kyra.

PHILLIPS: Now, Zarqawi stated that his goal was civil war. And there, of course, has been controversy to whether a civil war is already taking place or not. What is your sense that it can be averted, that it may die down, that it won't get into a hard-core civil war now?

PERRY: Well, civil war was always his stated goal. And sectarian violence is the means to that end.

We find bodies here every day in Baghdad. We're always reporting on that. Over 1,400 people were killed this month in violence against civilians. We heard from the Iraqi president that, the month before last, over 1,000 people were killed in sectarian violence alone.

Certainly, that is the big concern on everybody's mind. U.S. military commanders are hailing this as a military victory. I don't think anybody on the ground would deny that. We heard the U.S. ambassador call Zarqawi the -- quote -- "godfather of sectarian killings."

The impact that this has on sectarian violence in Iraq is yet to be seen, but, certainly, this is a moment that both the Iraqi prime minister and commanders here in Iraq are seizing.

PHILLIPS: Cal Perry, live from Baghdad -- thanks, Cal.

Will al-Zawahri's followers try to avenge his death in the U.S.?

CNN's Deborah Feyerick working that angle from New York, a city always on guard.

Hey, Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: A city always on guard is right, Kyra.

Right now, that is the question. Will that death trigger some sort of attack inside of the United States? According to one counterterrorism expert, intelligence gathered from the strike will be analyzed and then passed to law enforcement here, basically a trickle- down, to see whether there are any connections or links.

FBI headquarters has notified its offices in New York and throughout the rest of the country to review ongoing investigations and intelligence. And local, state, and federal authorities have been meeting today to discuss possible fallout.

But, as of now, sources say there's no new intelligence indicating that Zarqawi's death will activate so-called sleeper cells or serve to trigger an attack, the FBI saying there is no -- quote -- "specific or credible intelligence threat." The security levels remain the same in Washington, D.C., Los Angeles and New York, where the city's mayor talked about Zarqawi's death.

(BEGIN VIDEO CLIP)

MICHAEL BLOOMBERG (R), MAYOR OF NEW YORK: It is one step in the fight against terrorism. I just think that the most important thing about his death is, hopefully, it sends a message to others that we will not allow ourselves to be cowed by terrorists. We will not allow people to be killed by terrorists, without us doing what history shows we should have done many times in the past, stand up and go after terrorists wherever they are, and never, ever relent, until we catch them and bring them to justice.

(END VIDEO CLIP)

FEYERICK: Now, last year, there was information that bin Laden was encouraging Zarqawi to hit inside the U.S. But a terrorism expert tells CNN that the general feeling has been al-Zarqawi never had any retaliatory capabilities inside America.

Of course, there is the concern that second- or third-generation immigrants who may have trained in al Qaeda camps, who do have access to the Internet, and who might be prone to extremism could something on their own. But the bigger concern right now among many officials are strikes against U.S. forces on the ground in Iraq -- Kyra.

PHILLIPS: U.S. forces took out al-Zarqawi after intelligence sources, a possible al Qaeda informant and special forces in the field. It all came together in one precision bombing run. A U.S. Navy four-star admiral told me last hour that the world is better off without al-Zarqawi.

(BEGIN VIDEO CLIP)

ADMIRAL TIMOTHY KEATING, U.S. NAVY: As sophisticated and exotic as it looks and is, Kyra, the fact is, the young men and women out there are doing this every day in the skies over Iraq, Afghanistan.

And they train to those same missions here in the United States. The equipment that we enjoy in the military today is second to none. It's exceeded only by the young men and women who are actually using the equipment. This was -- it was a relatively normal mission, I guarantee you, for the kids that dropped the bombs.

PHILLIPS: And now you see the picture of Zarqawi dead. Tell me about the psychological effect that that's going to have on the insurgency.

KEATING: This fellow Zarqawi had a vast network, virtual and actual, of folks who were committed to his cause. His demise, his death, will undoubtedly cause serious fractures in that system.

It will resonate throughout the world. It will get back to Osama bin Laden. And it tightens the noose around all of those who are coming after us in this global war on terror. It's a significant step for us.

PHILLIPS: I know that you monitor a lot of classified satellites and other types of capabilities. I know Osama bin Laden is someone you would like to see get captured. You think that is more of a reality now?

KEATING: Matter of time.

(END VIDEO CLIP)

PHILLIPS: Well, al Qaeda's man in Iraq died in the crosshairs of a laser-guided bomb. So, what makes those things so smart? And what about the fighter pilots and those aircraft? They are pretty smart, too. Go with me inside the cockpit when we come back.

(COMMERCIAL BREAK)

PHILLIPS: It's a safe bet Abu Musab al-Zarqawi didn't know what hit him. The weapon that destroyed his not so safe house makes no noise and fell through miles of empty air on its way down. That's why the Air Force prefers to bomb a target smartly.

T.G. Kyragis is a retired Air Force fighter pilot. He knows about those missions all too well.

Thanks for being with us.

T.G. KYRAGIS, RETIRED U.S. AIR FORCE FIGHTER PILOT: Hi, Kyra. How you doing?

PHILLIPS: Well, this is a definite coup for the Air Force, isn't it? It has got to be the mission of a lifetime for any F-16 pilot in the Air Force.

KYRAGIS: I do believe it's a coup, but for all the forces.

The F-16 pilots today were just the instrument being chosen by the -- the commander today to execute the mission.

PHILLIPS: Now...

KYRAGIS: They were very lucky to actually have been the ones to be the ones to drop the bomb on target. But the commander did have many choices today.

PHILLIPS: Well, and -- and you have been in that ready room when choices have to be made. You have been briefed for missions just like this.

Take me inside that ready room and tell me how it begins. You get the intelligence, and you're told what you're going to be doing.

KYRAGIS: As I have been listening to the details of the mission today, it sounds like there were a lot of aspects involved.

The Marines on the ground, the airborne assets, the F-16s themselves, all those things are incorporated into the initial briefing. So, as a pilot in the cockpit, you want to know exactly where your friendly forces are, who you're going to be talking to, and, of course, obviously, the target, where it is, what buildings might be located around that, that you want to try to avoid, and exactly precisely identifying the target, so there are no mistakes made.

PHILLIPS: When you get into the cockpit, how do you check your weapons system and make sure everything is a go?

KYRAGIS: That was one of the big things, probably, on today's mission.

Again, in the old days, you would think of a -- a pilot being more concerned with trying to hit a target using his skills. We -- we have talked about the technology of the weapons these days being so precise, that a lot of it is just a systems monitoring.

The pilots today were probably looking to make sure that the built-in tests worked correctly, they had one green light there. We talked about the initial inertial systems on board that are being updated by the global positioning system. They're also checking that to make sure the green light was there.

So, everything had to be perfect before they probably released those bombs. If not, they were going to go to one of the backup plans, either a different airplane with a correct functioning bomb or a correct functioning inertial system or some other type of weapon.

If the GPS-type bombs that we talked about earlier weren't functioning, they could have gone to a -- a laser-guided-type precision munition.

PHILLIPS: Now, T.G., we were looking at a graphic just as -- it was perfect timing. We could sort of see the outside of the aircraft and how that bomb dropped.

But I want to go inside now and talk about the laser designation pod and -- and what is so amazing about that capability. And that's actually the video that we saw of that bomb dropping from inside the cockpit. It's what you're looking at. It's how you know that you are able to strike the target. Here it is right here. Let's talk about the laser designation pod and why this is so essential.

KYRAGIS: Yes.

What we're looking at is probably a different aircraft that actually dropped the bomb. This one is probably orbiting a little bit further away. And what he's doing right now is just continuing to track the target with this laser pod. It's pointing at the target and it's emitting a laser beam. And it's reflecting laser energy off for a laser-guided bomb to come and guide on it.

Now, as we know -- or the reports we have heard are that it was not a laser-guided bomb that was used in this situation. There are other backup things that this system can be used for. Obviously, we can get initial battle damage assessment by looking at the target and obviously seeing that it was destroyed on impact from the first and then the second bomb.

If they needed to, they could have used a backup laser bomb that would actually guide on the reflected laser energy. Again, it's a great standoff weapon. And it's precision-guided. You're going to hit the target you want, and no collateral damage from any surrounding targets or surrounding buildings.

PHILLIPS: Well, I have been really lucky to fly with you when you were active in the Air Force and -- and also with the Navy. And all of you really pushed understanding the weapons systems and how crucial precision weapon success is.

How do you train to drop that bomb on target and avoid collateral damage? I know there's a lot of simulators that you have to go through, a lot of book work. It's a lot of mental work.

KYRAGIS: It is.

But it's something that all the flyers and all -- in fact, all the men and women who serve in the armed forces do today, is they train daily for these type missions, and they're well prepared for it. Every day, we come back from a flying mission, and we spend hours going over each one of the tapes to make sure that the target was hit, the aircraft that you were trying to target was, in fact, the one you targeted.

We review tapes. And, again, it's just as if it was done in training. Now, obviously, this mission had a lot more impact. And, if the pilots, in fact, knew their target beforehand, there would be a lot more of the jitters, if you will. But with the training day in and day out and years of training -- I had 20-some -- by the time it -- I won't say it becomes second nature. There's always that edge. But you want to make sure you do the job precise, do it correctly, and make the commanders happy.

PHILLIPS: What -- finally, put me in the mind-set. What is it like to actually pull the trigger? And -- and what is it actually like to see that you hit that target? It's got to be exhilarating.

KYRAGIS: It's a two-edged sword, Kyra. In some ways, it's exhilarating, in that you have accomplished the goal. You have succeeded in your mission, and you have done to the best of your ability.

But, then again, you do understand the human end of that. I think everybody who is a trigger-puller understands that there is some consequences on the other end. And, hopefully, it's to stop this conflict and get us on the right track.

PHILLIPS: Retired Lieutenant Colonel T.G. Kyragis, retired Air Force, sure glad you joined us today. Thanks for the insight.

KYRAGIS: Thank you, Kyra. PHILLIPS: Straight ahead: Al-Zarqawi is killed in Iraq, but is al Qaeda gaining ground in Africa? Coming up on LIVE FROM, CNN's Jeff Koinange joins me to talk about storm clouds over Somalia.

The news keeps coming. We will keep bringing it to you.

(COMMERCIAL BREAK)

PHILLIPS: Well, stocks have been slumping over the last few days.

Susan Lisovicz is live from the New York Stock Exchange to tell us whether we want expect a recovery today.

Hey, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, that might be overly optimistic.

But, Kyra, I do have good news, in that we have seen an attempt at a rally. Certainly, in the last few minutes, the Dow industrials actually turned positive, after dropping 175 points earlier in the session. They turned back south, but not nearly as bad as what we have seen, blue chips down 18 points right now, at 10913, the Nasdaq still in deep declines, down 16 points, or three-quarters of a percent.

Crude oil, meanwhile, fell 50 cents today, settling at $70.35 per barrel, traders hoping the death of terrorist leader Abu Musab al- Zarqawi could put an end to the frequent sabotage of energy exports coming out of Iraq -- Kyra.

PHILLIPS: All right, speaking of the oil industry, it looks like BP dealing with some fallout from the big oil spill back in March.

LISOVICZ: Yes.

I mean, BP is a company that likes to market itself as responsive and responsible on the environment. It is facing a criminal grand jury investigation in Alaska, which could result in prison terms for company officials, as well as big fines and tighter restrictions on BP's operations.

The spill occurred in Prudhoe Bay, Alaska. It was caused by a corroded transit line that leaked up to 270,000 gallons of crude. The company is accused of failing to properly maintain that pipeline. The probe, of course, could be a major setback for BP, which is already under close scrutiny, following a string of accidents and regulatory violations. Last year, you may recall, an explosion at BP's Texas City refinery killed 15 people and injured another 500 -- Kyra.

PHILLIPS: Well, the world's biggest company, ExxonMobil, seems to be facing some difficult questions as well.

LISOVICZ: Yes, Exxon has been feeling the heat for some time, Kyra. And Exxon board members are certainly under pressure now, refusing to meet with pension fund trustees in seven states and New York City to discuss concerns about global warming. The groups accuse the company of fighting efforts to limit global warming. One board member responded that the company has declined to invest in current alternative energy sources, but supports research into new technologies.

Instead of independent board members, Exxon says management employees will meet with the groups this summer.

And that's a quick look at what is happening in business. I will be back in about a half-an-hour with a full wrap-up of this volatile trading day.

Stay tuned. LIVE FROM will be right back.

(COMMERCIAL BREAK)

PHILLIPS: Osama bin Laden once called him the prince of al Qaeda in Iraq.

Now Abu Musab al-Zarqawi is dead. And U.S. forces acted on intelligence that al-Zawahri would be at a meeting near Baquba outside Baghdad yesterday evening. He was killed there by two precision bombs dropped by a pair of F-16s.

President Bush says the U.S. planes delivered justice. The generals say, there's no doubt they got their man.

(BEGIN VIDEO CLIP)

GENERAL GEORGE CASEY, COMMANDER, MULTINATIONAL FORCE IN IRAQ: We have been able to identify al-Zarqawi through fingerprint verification, facial recognition, and known scars.

(END VIDEO CLIP)

PHILLIPS: Well, five others died in that Air Force airstrike, including al-Zarqawi's spiritual adviser. Al Qaeda is urging its followers to carry on.

Well, al Qaeda is sometimes compared to Hydra, the mythical beast with nine heads that grows two more for every one that you lop off. And just look at Somalia, where an Islamic militia with suspected al Qaeda connections now controls most of Mogadishu, and reportedly has set up a religious court in the captured town.

CNN's Africa correspondent, Jeff Koinange, joins me again today to talk about the danger of seeing al Qaeda get a foothold in Somalia.

We did touch on this a little bit yesterday. But, in light of what happened today, we have got to talk about this some more.

JEFF KOINANGE, CNN AFRICA CORRESPONDENT: That's right. And this, Kyra, is a classic case of betrayal at its worst end. And also not just betrayal, but the U.S. backing the wrong horse. What happened is, according to "The New York Times," the CIA, from its base in Nairobi, Kenya, was transporting loads, bundles of cash in Mogadishu. And in order to back this one militia. And, of course, they gave them the money, and they literally ran.

And at the same time, al Qaeda was allegedly backing another militia, which has taken over control of the capital right now. So what you have is lots of money, lots of guns, in the hands of the wrong people. And it's a quagmire as we speak.

PHILLIPS: Well, it's interesting. You think of Afghanistan, the U.S.-backed militias in Afghanistan, and then years later, we see what happened. Now all of a sudden -- I mean, it's like history repeating itself in Mogadishu.

KOINANGE: Exactly. And the thing about Mogadishu is you cannot trust anyone. It's a lot like the insurgency in Iraq. You cannot trust any of those militias. They'll take your money, they'll run, or they'll use it for their own needs.

PHILLIPS: Now, is this different from the drug lord Aidid, the whole "Blackhawk Down" scenario where they tried to get in and get him out of there, because it was a civil war, people were dying?

KOINANGE: It was a debacle.

PHILLIPS: It was a debacle. And then, you know, we haven't seen a lot since then.

KOINANGE: No, you haven't.

PHILLIPS: So what happened? Is this...

KOINANGE: The thing is, the Somalis probably, in their own way, they feel the U.S. literally pulled out, left them, you know, standing there in the wind with nothing to fight for. And all they can do now is fight amongst themselves. It's literally gun fight at the O.K. Corral. They are going to fight until the last one down, and that's what they're doing.

And take -- keep in mind, that Somalia has no ethnic groups at all. It's one tribe, literally, and many clans. It's literally families controlling block after block after block. And until the strongest one survives, they're going to keep fighting.

PHILLIPS: So how is al Qaeda tied in here?

KOINANGE: Al Qaeda backing one of the militia groups, because Somalia has been without a government so long, and they figure, this is the one place al Qaeda can have a free-for-all, a free run. And they're doing that right now. And the U.S. and other countries, African Union, cannot do a thing because nobody wants to go in. Nobody can go in right now. It is that dangerous.

PHILLIPS: Well, is there talk that it's on the plate, that the U.S. could get involved again? Is there any rumblings?

KOINANGE: If they get involved, it will be through these militias they backing. That's the only way that they can get any kind of (INAUDIBLE) or any kind of -- gain any ground in this. But right now, it's literally a quagmire. They cannot get in. And they do get in, they'll be difficult to extricate once again. And remember, they pulled out in '94, so it -- you know, it's a bitter pill to swallow.

PHILLIPS: So what happens next?

KOINANGE: What happens next is they're going to have to find some kind of negotiation. I don't know if this -- I see this Islamic...

PHILLIPS: Can you negotiate with this militia, though?

KOINANGE: It's difficult. Difficult. In Somalia, you cannot trust anybody. And until they take the capital, until saner minds prevail, if you will.

PHILLIPS: Who is it that's going to try to do the negotiations? Who is this?

KOINANGE: The other clans. You know, various clans who control various parts of Mogadishhu. Because it's a big town, and they only control parts of it. And there are other militias that control parts of Mogadishu and the outlying areas. They'll have to reach some kind of truce in the meanwhile, talk and see where they can move forward.

PHILLIPS: Jeff Koinange, thanks so much.

KOINANGE: Good to see you.

PHILLIPS: Well, you name it, Abu Musab al-Zarqawi opposed it. Israel, the West, Shia Muslims, the government, and his native Jordan. Through it all, people were drawn to him and his causes. So how did this man become the face of violence and terror in Iraq?

CNN senior national correspondent Nic Robertson went looking for the answer.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): Iraq, May 2004. American Nick Berg was about to be beheaded.

NICK BERG, VICTIM: I have a brother and two sisters (INAUDIBLE).

ROBERTSON: American Nick Berg is about to be beheaded. His execution recorded and released on a Web site titled, "Abu Musab al- Zarqawi Slaughters an American." Its barbarity rockets Zarqawi from relative obscurity to front-page familiarity as the deadliest insurgent in Iraq.

To find out how Zarqawi got to this point, I've come to this jail in Jordan.To find out how Zarqawi got to this point, I've come to this jail in Jordan.

UNIDENTIFIED MALE: In this prison, in this jail, al-Zarqawi became a leader.

ROBERTSON: Journalist Abdullah Rumman knew Zarqawi is willing to talk. He was locked up with him in the mid-1990s.

(on camera): So he was asking his men to march along?

UNIDENTIFIED MALE: They used this square to walk as a close group, a strong group...

ROBERTSON: Like an army?

UNIDENTIFIED MALE: And shouting - like an army, exactly like an army, and shouting.

ROBERTSON (voice-over): Politely moved on by Jordanian security, Rumman tells me to learn more. I should begin where Zarqawi grew up.

Born Ahmed Fadil Al-Khalayleh, he later took his nom de guerre, Zarqawi, from the name of his hometown, Zarqa. It looks pretty from a distance. But up close, it's different, crammed by successive waves of Palestinian refugees, one of the poorest towns in the country.

(on camera):L With its densely packed housing and intense tribal loyalties, Zarqa has been compared to the Bronx. But others liken its down-at-heel working class neighborhoods to Detroit. For Zarqawi, though, it was a place of limited opportunity.

(voice-over): Outside the house where he was born in October 1966, neighbors say they remember the family well.

UNIDENTIFIED MALE (through translator): They were a simple people. They lived a simple life. They barely made it.

ROBERTSON: His father fought against the Israelis in 1948, and was well-respected before he died. In this picture at the time, the young Zarqawi looks unremarkable, but seems determined to earn respect like his father.

UNIDENTIFIED MALE (through translator): If someone would even harm his neighbors, Zarqawi would always come to defend the victim. He always did good deeds, nothing wrong.

ROBERTSON: His days were spent here in Zarqa's school. But by all accounts, he didn't excel academically.

(on camera): Zarqawi left school before his final exams, disappointing his parents. He didn't seem to have a career in mind and his father tried to fix him up with a job at the local municipality.

(voice-over): That was 1982. Zarqawi was about 16, developing a reputation as a tough guy who, against Muslim custom, drank and got a tattoo. Outside his old mosque, I tracked down his brother-in-law, hoping he can tell me more.

(on camera): Excuse me, sir, can we talk you to about Abu Musab, your brother-in-law? Is that possible? You know nothing? You don't want to say?

(voice-over): He's not unfriendly, just unwilling to talk.

One man I find who will talk says he knew Zarqawi's father and was Imam, or preacher, to both father and son.

UNIDENTIFIED MALE: I know him exactly, and the first time when he was a child, he no good.

ROBERTSON (on camera): Was his father angry with his son?

UNIDENTIFIED MALE: Yes, so angry. And last time he told me there is no good road for me, only to -- I kill him.

ROBERTSON: To kill his son?

UNIDENTIFIED MALE: To kill his son, yes.

ROBERTSON (voice-over): Zarqawi was out of control. No one here can tell me more. But as I am to find out later, he was about to have a life-changing experience. At that time in 1989, the U.S.-backed Mujahideen were on the verge of driving the Soviet army out of Afghanistan. Thousands of Arabs, including Osama bin Laden, were in the fight. Zarqawi decided to join them.

In these rare pictures, taken soon after he arrived, Zarqawi is seen relaxing, mixing happily with other Jihadists or Muslim holy warriors. He'd arrived as the jihad was ending. Some reports say Zarqawi never fought the Soviets. Others, that he was very brave in battle. All accounts agree though, he befriended this man, Abu Muhammad al-Maqdisi, a Kuwaiti born cleric, intent on the violent overthrow of secular Arab governments.

Much of what he did in Afghanistan is unknown. There are conflicting accounts of whether or not he met Osama bin Laden. General Ali Shukri was a military and intelligence adviser to Jordan's King Hussein and knows Zarqawi's case file.

UNIDENTIFIED MALE: He decided to join the fight against the Soviets in Afghanistan. He was trained there. He became a bomb expert.

ROBERTSON: Zarqawi left Afghanistan in 1992. He came back to Jordan with new friends, ideas and an agenda.

When we return, Zarqawi's radicalism lands him in prison and sets him on a path to become the most feared insurgent in Iraq.

UNIDENTIFIED MALE: Go! Go!

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PHILLIPS: Back now to the story of Abu Musab al-Zarqawi. Not his death, which you probably heard plenty about by now, but his career in terror, his short but self-made success in the business of hatred. Again, here is CNN international correspondent Nic Robertson.

(BEGIN VIDEOTAPE)

ROBERTSON (voice-over): Zarqawi returned to Jordan in 1992, reuniting with his spiritual mentor Maqdisi.

GEN. ALI SHUKRI, FMR. JORDANIAN MILITARY ADVISER: He started to plan attacks against visitors, tourists coming into Jordan. He managed to create his own unit, if I can call it a unit, or a cell all the time under the auspices of al Qaeda but disengaged from al Qaeda.

ROBERTSON: In 1994, Zarqawi was arrested and jailed for possession of explosives and plotting against the Jordanian Kingdom.

ABDULLAH RUMMAN, AL-ZARQAWI'S FELLOW PRISON INMATE: And al- Makrasi (ph) came to describe him as a hero. Everybody came out at that time that Zarqawi is the strongest one.

ROBERTSON: Swaqa jail had a relatively liberal regime. Prisoners could work on the farm, in the workshops or kitchen. Zarqawi exploited the system.

RUMMAN: He told the officer that you can't touch anybody from my group. You can't touch him, because you are infidels and we are believers.

ROBERTSON (on camera): So the prison authorities couldn't control him?

RUMMAN: No, nobody can control him.

ROBERTSON (voice-over): It was the same in court.

MOHAMMED AL-DWEIK, AL-ZARQAWI'S FORMER LAWYER (through translator): He used to give orders to his followers with his eyes, meaning don't talk. Another sign is when he said God is great. Then they would repeat it after him. If he prayed, they would do so following him. If he read the Koran, they would read it after him.

ROBERTSON: But what turned Zarqawi, one-time hard man, into this radical Muslim? Sheikh Esmat (ph), a political dissident who also found God, thinks he knows the answer. He was close to Zarqawi in prison, even wears the white robe Zarqawi gave him to our interview. According to Esmat, Zarqawi found God before he went to Afghanistan, after waking from a drunken stupor and looking for a purpose.

UNIDENTIFIED MALE: He was drunk, he throw up. And when he woke up, he said to him, what happened? Why I like this? Why I drink?

ROBERTSON: He became a devout Muslim.

UNIDENTIFIED MALE: In Swaqa prison, he finishing the Koran.

ROBERTSON (on camera): Finished learning the Koran?

UNIDENTIFIED MALE: Not learning ...

ROBERTSON: Memorizing.

UNIDENTIFIED MALE: Memorizing.

ROBERTSON (voice-over): In 1999 he was released, benefiting from the newly elected King Abdullah's pardon for all political prisoners. Returning to his wife and four children in this house in Zarqa, he lacked work, missed his followers, and was confused.

RUMMAN: His sister went to him. She knows that he is very sad. She turned to him, "Remember the vision. God wants you to be a mujahid." It's a dream.

ROBERTSON: He followed her vision and headed back to his jihadi roots in Afghanistan, setting up a training camp in the west of the country far from bin Laden. Arabs from Syria, Lebanon and Jordan close to his home came for his specialized classes in bombmaking.

Following the September 11 attacks, Zarqawi's camp was bombed. He fled west. According to U.S. officials, he turned up in a jihadi camp belonging to a group called Ansar al-Islam, located in Kurdish- controlled northern Iraq.

By late 2002, he was on the attack. Jordanian officials link Zarqawi to the assassination in Amman of USAID official Lawrence Foley. In 2003, Zarqawi was dubbed the al Qaeda link to Saddam Hussein.

COLIN POWELL, FORMER SECRETARY OF STATE: Iraq today harbors a deadly terrorist network headed by Abu Musab al-Zarqawi, an associate and collaborator of Osama bin Laden.

ROBERTSON: Powell also said he was a Palestinian who'd lost a leg. Both details untrue. But as war in Iraq got closer, Saddam did invite Arab jihadists to Baghdad.

LT. GEN. JAMES "SPIDER" MARKS, U.S. ARMY (RET.): From the end of 2002 and up through March 2003, Zarqawi was not part of the equation from the intelligence perspective. And I was the senior intelligence guy on the ground.

ROBERTSON: But after the fall of Saddam Hussein, Zarqawi became very much a part of the equation. In August 2003, a suicide bomber destroyed the U.N. Headquarters in Baghdad, killing a top diplomat and more than 20 others.

MARKS: That is probably the inflection point where we began to realize we're in the midst of an insurgency. ROBERTSON: Zarqawi claimed responsibility for the U.N. bombing. More bloody attacks in Zarqawi's name followed, targeting not just U.S. troops, but Iraqi security forces and Iraq's majority Shiite population, his Web-posted exploits rapidly propelling him to the most popular insurgent among the newly emerging radical jihadists like himself.

He is also the most wanted insurgent by now worrying about being caught. In a letter to bin Laden, he sounds worried. "Eyes are everywhere," he says. Later, and more confident, he calls for bin Laden's blessing, and gets it.

UNIDENTIFIED MALE: "Dear Mujahid brother, Abu Musab al-Zarqawi is the prince of al Qaeda in Iraq, so we ask all our organization brethren to listen to him and obey him in his good deeds."

DR. MARC SAGEMAN, FORMER CIA OFFICER: There are definitely some major differences between Zarqawi and bin Laden. Zarqawi is very much a part of the new generation, the new leadership, of this whole social movement. The new leadership is far more aggressive than the old leadership.

ROBERTSON: Now with Zarqawi gone, will the insurgency take a less violent turn?

(END VIDEOTAPE)

(COMMERCIAL BREAK)

PHILLIPS: October 12, 2000: We weren't as wise to the ways of terrorists as we would sadly become months later. So when a dinghy pulled alongside the USS Cole in a Yemen port, no one imagined what would happen next.

Here's a "Fact Check" on the blast that almost sent the Cole to the ocean floor.

(BEGIN VIDEOTAPE)

ANNOUNCER: Bold, daring, deadly: October 12, 2000. The USS Cole was in Yemen's port of Aden refueling. It was a beautiful day. A small boat approached the destroyer. Two men smiled and waved to the American sailors. The boat pulled alongside and then exploded, blasting a 40-foot wide hole in the ship's hull. Seventeen American sailors were killed, 39 others wounded. Gallant action by some 300 survivors prevented the Cole from sinking.

Once stabilized, the warship returned to the U.S. and underwent $250 million of repairs. About eight months after the bombing, Yemeni officials arrested ten suspects.

But it was another four years before Jamal Ahmed Badawi and Abd al-Rahim al-Nashiri were sentenced to death for plotting and being involved in the attack. Four others were sentenced to five to ten years in prison. Last year, Badawi's death sentence was commuted to 15 years in prison. In February, the international police organization Interpol reported that Badawi had escaped.

(END VIDEOTAPE)

PHILLIPS: Almost six years and $250 million later, the USS Cole is heading back to the Middle East along with five other ships and a submarine. The Cole will show the U.S. colors in the Persian Gulf, Red Sea and Indian Ocean. Seventeen gold stars are now embedded in a passageway that leads to the Cole's dining room, each representing the sailor who died in that bombing.

(BEGIN AUDIO CLIP)

PAT REYNOLDS, USS COLE COMMANDER: I do get chills. It is hallowed ground on board this ship and it's a memory of something bad that happened. But more importantly, it is a reminder to what happened the days following that when the crew came together and saved the ship and saved the other ship mates that were injured.

(END AUDIO CLIP)

PHILLIPS: That was the voice of Pat Reynolds, the commander of the USS Cole. Now, the Cole's current crew of 320 includes more than a few sailors who specifically asked to serve aboard the ship that's been called an active national monument.

Time now to check in with CNN's Wolf Blitzer. He's standing by in THE SIT ROOM. Hey, Wolf.

WOLF BLITZER, CNN ANCHOR: Hi, Kyra. Thanks very much.

Is the big news on the death of Abu Musab al Zarqawi a turning point for Iraq? Several important guests standing by to join us here in "THE SITUATION ROOM" -- among them, the U.S. ambassador to Iraq, Zalmay Khalilzad, also Senator John McCain and Congressman John Murtha.

Plus, Zarqawi was one of America's most wanted terrorists. But where is Osama bin Laden? And why is it so hard to get him? And a story you first saw here in "THE SITUATION ROOM": the war of words between Senate Judiciary Chairman Arlen Specter and the vice president, Dick Cheney, over the NSA spying program. Today the vice president responds.

All that, Kyra, coming up, right at the top of the hour.

PHILLIPS: All right. Thanks, Wolf.

We'll be right back. More LIVE FROM coming up after the break.

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PHILLIPS: It's getting close to the closing bell. Susan Lisovicz joins us live from the New York Stock Exchange. Susan, pretty busy day. LISOVICZ: Very, very busy day -- 2.4 billion trades right now, and we're not even at the closing bell just yet -- in about another minute, Kyra.

(MARKET REPORT)

BLITZER: Susan, thanks.

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