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President Bush Visits Iraq; Rove Escapes Indictment in CIA Leak Case

Aired June 13, 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, live at the CNN World Headquarters in Atlanta.
Wheels up -- President Bush on his way back to the U.S., after a surprise visit to Baghdad. Will that trip help bolster support for the war right here at home?

Also, Secretary of Defense Donald Rumsfeld goes to Capitol Hill to brief lawmakers on Iraq. There are new calls for his resignation.

And this scene on a Gaza beach has played around the world, a young girl screaming after the death of her family. But what killed him and six other family members?

The third hour of LIVE FROM starts right now.

Secrecy and security, both were extreme, as President Bush flew into Baghdad today, and the latter got even more so once the former was gone. Mr. Bush addressed U.S. troops and met Iraq's new prime minister, who was given five-minutes notice that he would be hosting a presidential visit.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I have come today to personally show our nation's commitment to a free Iraq. My message to the Iraqi people is this: Seize the moment. Seize this opportunity to -- to develop a government of and by and for the people.

And I also have a message to the Iraqi people, that when America gives a commitment, America will keep its commitment.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

PHILLIPS: Well, the trip included a teleconference with the Iraqi cabinet and members of the president's team he left behind at Camp David.

From Camp David, the secretary of state and defense secretary headed straight to Capitol Hill today, where Democratic opposition to the Bush team's handling of the war and to Donald Rumsfeld in particular is as strong as ever.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), MINORITY LEADER: He is the architect behind the failed policy in Iraq. Rumsfeld must go.

(CHEERING AND APPLAUSE)

PELOSI: But we should never forget, in calling for his resignation, that this is George Bush's war.

(END VIDEO CLIP)

PHILLIPS: CNN's senior Pentagon correspondent Jaime McIntyre joins me now with the follow-up.

How much of a morale boost do you think this trip was?

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, I think you could tell from the troops, any time the commander in chief shows up on the scene, it's a huge shot in the arm for the troops.

You know, one thing you find when -- when you go and talk to troops in Iraq is, they believe in what they are doing. And you might say they really had no other choice. If you are going to put your life on the line every day, it better be for something that you believe in.

And, so, the troops there are very committed to the objective. They are focused on the -- the task that they have to conduct at hand. And when the -- when the president comes, the commander in chief comes, he always gets a warm -- warm reception.

And I think you have to say, it's -- it's a genuine feeling on the parts of the troops. They are genuinely excited to see him and to receive his thanks for the hard work they are doing -- Kyra.

PHILLIPS: Well, Jamie, what is Rumsfeld telling members of Congress today?

MCINTYRE: Not exactly sure, probably the same old thing that they have been saying for a while, which is basically, have patience.

Rumsfeld, Condoleezza Rice, John Negroponte, the director of national security, up on the Hill, briefing members of Congress, again, urging the Congress to stick with the plan, trying to dampen expectations that there will be a withdrawal of U.S. in the short term, but to provide some hope that, perhaps by the end of the year, you will see a significant reduction in troops, but, again, stressing that it's all based on the conditions on the ground, the capability of the Iraqi forces which the Pentagon claims is increasing all the time.

And I think, significantly, also, this idea that there will be a major show of force in Baghdad tomorrow, with about over 70,000, mostly Iraqis, some American troops on the streets, to show that they are trying to essentially take back the city from the insurgents -- Kyra.

PHILLIPS: All right, Jaime McIntyre live from the Pentagon -- Jamie, thanks so much.

Well, after five visits to a federal grand jury, the president's top political adviser learned that he will not be charged in the CIA leak investigation.

CNN's Elaine Quijano joins me with that -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: And, Kyra, the cloud that had been hanging over this White House about whether or not Karl Rove would be indicted, well, that cloud has now lifted.

Karl Rove's attorney, Bob Luskin, said today that the special counsel in this case, Patrick Fitzgerald, formally advised Rove's legal team yesterday that he does not anticipate seeking charges against Karl Rove.

Now, here at the White House, the president's top political adviser appeared upbeat. And though he didn't say anything to reporters, he did give a playful wave to the cameras.

Last night, Rove also did not make mention of the news when he spoke to New Hampshire state Republicans at a fund-raiser. But, certainly, this development is particularly timely for this White House and the GOP, who have been looking for some good news, support heading into the midterm elections.

President Bush is said to be pleased that this process is over. And counselor Dan Bartlett, who is traveling with the president, said -- quote -- "We are obviously pleased that what can only be described as a very fair investigation is completed. What is remarkable is how Karl kept his focus, his energy and his great attitude during this entire period."

Now, as for the Democrats, Democratic Senator Chuck Schumer says that he accepts this decision, but he also says that the special counsel in this case must find out who did, in fact, leak Valerie Plame's identity to the media, she, of course, a CIA operative whose identity was made public. The bottom line, though, Kyra, from the White House's perspective, they are certainly breathing a huge sigh of relief, a top Bush aid saying that -- quote -- "Having finality is a good thing" -- Kyra.

PHILLIPS: All right, Elaine Quijano, thanks so much.

If anything, Karl Rove is a fighter and survivor. Here's a look at a career path that led to the White House.

(BEGIN VIDEOTAPE)

UNIDENTIFIED CORRESPONDENT (voice-over): Depending on who you talk to, Karl Rove is a political genius, the architect of President Bush's White House victories, or a savage political strategist, always willing to engage in dirty tricks.

Rove was born in Denver, Colorado, in 1950. He attended several colleges, but never graduated. It was during those years that he apparently discovered his passion for politics and winning. While at the University of Utah in the late '60s, Rove joined the College Republicans. From there, you could say the rest is history.

Rove's ties to the Bush family go way back. Bush's father hired him to guide his unsuccessful run for the White House in 1980. Afterward, Rove settled in Austin, Texas, and founded his own political consulting firm. From that platform, he helped George W. Bush win the Texas gubernatorial election in 1994.

Since then, Rove is often just a couple of steps behind the president. Despite his involvement in the CIA leak case, Rove appears to be the archetypical optimist. A wide grin always seems to be a fixture of his round face.

He has never been known to talk much about his personal life, although he did tell "The New Yorker" magazine this, that his parents' marriage ended on his 19th birthday. And, 12 years later, his mother committed suicide.

(END VIDEOTAPE)

PHILLIPS: Patrick Kennedy has put his legal ordeal behind him. The Democratic congressman from Rhode Island pleaded guilty a short time ago to driving under the influence of prescription drugs.

In return, charges of reckless driving and failure to exhibit a driving permit were dismissed. Kennedy was sentenced to drug treatment and a year of probation, all this more than a month after Kennedy crashed his car near the Capitol in the wee hours of the morning. He spent the next few weeks in rehab, after admitting that he was addicted to prescription drugs. Kennedy denies drinking before that accident.

Alberto comes ashore with more of a whimper than a roar. You are looking at a live broadband picture from Steinhatchee, Florida. It's quite the rainmaker, though, across Florida, into George and the Carolinas. And we still could see a storm surge of up to nine feet. Florida remains under a state of emergency. And more than 20,000 people are out of their homes. About 450 National Guard troops are on standby.

Well, the storm came ashore near Adams Beach, about 40 miles from where our Dan Lothian is still braving the winds. He joins us now from the village of Steinhatchee.

Dan, has it changed much since we last chatted?

DAN LOTHIAN, CNN BOSTON BUREAU CHIEF: Oh, my goodness.

Yes. As you can see, the rain is now coming down. That is something that we haven't had for about the last couple of hours or so. We didn't get that hurricane here, but it has been quite messy, having spots of heavy rain and high winds. And then it calms down again. We are in that period of time now when that rain has really picked up. Now, one of the good things is that the -- the storm surge that was expected, at least emergency management officials expected around 8:00 this morning -- there was concern in the low-lying areas, where some 2,000 residents live -- that storm surge did not materialize.

What they are watching now, though, is the second high tide of the day, which is expected to happen in about -- oh, about five to 10 minutes from now. And the concern is that there could be additional flooding, as the wind is pushing that water through the river.

You can see the whitecaps there. There, you can see the palm trees, the direction that the wind is blowing. They're concerned that some of that water will flow onto the streets and perhaps into some of the homes -- back to you, Kyra.

PHILLIPS: All right, Dan Lothian, thanks so much.

Tony Harris, it looks like your girl...

TONY HARRIS, CNN CORRESPONDENT: A Daryl Hannah update for you.

PHILLIPS: Your girl Daryl Hannah is coming out of the tree.

HARRIS: She doesn't call me anymore.

(LAUGHTER)

HARRIS: OK. And I guess I understand why in this case.

This is a picture from -- no, it's a live picture right now. Daryl Hannah, she has been up that walnut tree for the last hour or so -- well, actually, longer than that. We saw, just a few moments ago,that the firefighters moved in with this -- this ladder and cherry-picker to get her down. They had to take a saw to it as well, because she had tied herself to the tree, along with environmental activist John Quigley -- live pictures right now of Daryl Hannah being removed of the tree and, ultimately, here being lowered to the ground.

It has taken, Kyra, quite a while to execute this eviction. This all stems from an eviction order legally obtained by the owner of this property to move people from this urban garden, considered by some to be the largest urban garden in the United States, in South Central Los Angeles; 350 or so farmers work that 14-acre site. And the order was given that they -- it was time for them all to go.

This is something that has been building over the last month or so, but the fight has been going on much longer than that. It's just really picked up intensity over the last month. This has become kind of a cause celebre for a lot of personalities in Los Angeles.

We are talking about Willie Nelson, Danny Glover, Joan Baez, and others, Daryl Hannah here, who have championed the cause of these farmers. It -- for them, it is a -- a case about jobs, certainly some kind of a statement about eminent domain.

And, right now, Daryl Hannah, who has been in a walnut tree most of the day, as protesters have been out in front of this 14-acre site, trying to hold off sheriff's deputies and L.A. Police from executing this eviction notice, here she is, touching down, in just a couple of moments, on terra firma, again, Daryl Hannah standing up for farmers in South Central Los Angeles. There you go.

PHILLIPS: The next Cesar Chavez right there.

HARRIS: There you go.

PHILLIPS: Daryl Hannah. Forget the movie business.

All right.

(LAUGHTER)

HARRIS: That's it.

PHILLIPS: We will stay on top of...

(CROSSTALK)

PHILLIPS: We will see what happens. We will see if, you know, what she did makes a difference.

HARRIS: Maybe save it or something, sure.

PHILLIPS: Right. Absolutely.

All right, Tony...

HARRIS: OK, Kyra.

PHILLIPS: ... thanks so much.

Dramatic video of that family that was attacked on the beach -- now this story takes a twist, as we hear who may be responsible.

Stay with us. You are watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: What Mideast peace plan? An Israeli airstrike killed 11 people in Gaza today, as Palestinian President Mahmoud Abbas accused Israel of trying to wipe out the Palestinian people.

Israel denies it's to blame for an explosion that Friday -- on Friday -- that killed seven members of one Palestinian family while they picnicked on a Gaza beach. Israel says the blast came from a land mine planted by Hamas.

CNN's Fionnuala Sweeney joins me now from Jerusalem with more on the furious finger-pointing that's going on -- Fionnuala.

FIONNUALA SWEENEY, CNN CORRESPONDENT: Indeed. Of course, you will, Kyra, recall the video which went around the world last Friday, shortly after that explosion on a Gazan beach, in which a family had been picnicking on a Friday afternoon, the holy day of prayer, the weekend here in this part of the world for Muslims.

And it was while they were having that picnic that the shell exploded, killing seven members of one family. Eleven-year-old Houda Ghalia was seen wailing and moaning the death of her father.

Now, that video, in turn, caused Hamas to end its is cease-fire with Israel. Israel immediately launched an investigation. And we had the results of its finding this evening. The Israeli army, in an internal investigation, determined there were a number of reasons, Kyra, why it could not have been responsible.

They looked at the timing of the shells that they had fired in the area at the time and when this explosion was said to have occurred. They looked at the shrapnel that they removed from Palestinian children's bodies that they removed to Israel for medical treatment, and says it was not consistent with the kind of artillery that they use.

They also charged Hamas, among other things, of laying mines in the area, and said intelligence information had shown that Hamas was seen in the area shortly after the explosion, removing mines, because they had laid mines to prevent Israeli commando units crossing the beach in undercover operations.

Of course, this is hotly contested. Human Rights Watch in Gaza, earlier this evening, a military analyst for them disputed almost every finding of the Israeli report. There are those, no matter what is said or what proof is found, will not change their minds one way or the other about this in this part of the world -- Kyra.

PHILLIPS: All right, Fionnuala Sweeney, we will definitely stay in touch with you with more developments on what happens with regard to that video and what happened on that beach.

But we have another developing story we want to get to.

Andrea Koppel now on the Hill.

John Murtha always making news, isn't he, Andrea?

ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: He certainly is, Kyra.

Less than a week after Congressman Murtha of Pennsylvania, a Democrat, threw his hat in the ring for majority leader, in the race for majority leader -- this took Democrats and Republicans by surprise -- he has now withdrawn his -- his -- his bid for majority leader, at least formally.

Just a few moments ago, the Democratic leader, Nancy Pelosi, issued a statement -- this is roughly what she said -- she said, in the spirit of unity, to achieve our congressional goal of winning a Democratic majority in November, John Murtha has informed me he will suspend his campaign for majority leader until after we win the majority in November.

This really sent shockwaves through the Democratic Caucus in the House, Kyra, last week, because it was assumed, certainly, by the second-most powerful Democrat in the House, Steny Hoyer, that he was going to be the main contender to be the majority leader, if Democrats win back the House in November.

There was also a lot of contention among some Democrats, who felt that John Murtha was distracting the caucus from keeping their eyes on the prize. That is, first, they have got to win back the House. They are 15 votes short. And the sense was that, until Democrats win back the House, they didn't want to kind of start measuring the office for -- for curtains, so to speak.

So, this has certainly, I'm sure, sent a lot of relief through the Democratic Caucus, that -- that Congressman Murtha is going to suspend his nomination. But, as one Democratic aide told my colleague Deidre Walsh just a few moments ago, just because Congressman Murtha -- Congressman Murtha is suspending his campaign doesn't mean that it can't take place behind the scenes -- Kyra.

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

And, straight ahead: water, flashlights, and plywood, lots of plywood, they're flying off store shelves during hurricane season. So, how do businesses weather the storm? LIVE FROM takes a look -- coming up.

(COMMERCIAL BREAK)

PHILLIPS: An update now on Tropical Storm Alberto -- Alberto.

(LAUGHTER)

PHILLIPS: Our meteorologist Jacqui Jeras with where it is and where it's headed.

Hey, Jacqui.

JACQUI JERAS, CNN METEOROLOGIST: Let me hear you roll those R's, Kyra.

(LAUGHTER)

PHILLIPS: Exactly. Alberto.

JERAS: I know.

PHILLIPS: I have to -- you know, I have to say it right.

(CROSSTALK)

JERAS: You want to say it that way, don't you? PHILLIPS: Yes.

(LAUGHTER)

JERAS: Yes. It's supposed to be Alberto, though, I guess, technically, unless you are Spanish. So...

(LAUGHTER)

JERAS: Hey, that tornado watch that we have been expecting and talking about for the last hour has been posted now. And it does include parts of Georgia, extending on into South Carolina.

We have got a new tornado warning to go along with that. That's for Tattnall County, includes the city of Midway, also Manassas. This storm is moving to the north around 20 miles per hour. So, take cover. They are weak tornadoes, but they can cause damage and can be a real problem. So, be aware of this threat.

Also, notice, look at those lines still offshore. And take note of all of these little individual cells. So, we might see some of these rolling onshore up near the Charleston area. And we could get some more warnings, as we progress throughout the afternoon.

And, in fact, you can often get tornadoes spinning out of tropical systems for a good two days after the storm has made landfall, depending where it is in relation to the storm. Those usually occur in what we call the right front quadrant. So, if take the storm itself right here, you divide it into four, it's up in this quadrant here where we tend to see the tornadoes most often.

You can kind of pick out the center of rotation here, kind of moving on up towards the Florida-Georgia state line, weakening very rapidly, barely a tropical storm anymore. But it's still Alberto, and it still has some threats that go along with that. In addition to tornadoes, still concerned about some of that flooding. We are getting in the rainfall reports. Slowly but surely, they're coming on in. We have got just over 4.5 inches now in Ruskin, Florida. Lithia had over four inches. And in Bradenton, down there near Tampa Bay, Sarasota area, had about 3.5 inches of rainfall -- Kyra.

PHILLIPS: Jacqui Jeras, thanks so much.

Well, a looming hurricane can mean an onslaught of customers at Home Depot, Wal-Mart, and the like.

Ali Velshi in New York with a look at how those stores are preparing.

Ali, after last year's hurricane season, you know, a lot of major companies, they learned a lesson. Now they are preparing for this and probably stocking up 10-fold on things.

ALI VELSHI, CNN CORRESPONDENT: Yes.

And, I mean, all sorts of companies are preparing. And, in fact, this is just a very small list of the companies that are doing something. But what's interesting, Kyra, is that these are companies that not only have to look after their customers and their products, but they are kind of important to the infrastructure, because so many Americans use them.

Wal-Mart, for instance, is making sure that they are stockpiled on all the sorts of things that -- that they're going to need, the flashlights and -- and things like that. They are also extending their emergency training to all of their employees. It used to be sort of just key players, but remember that so many people come into contact with Wal-Mart employees that Wal-Mart is training everybody on this.

Home Depot has -- has had like a war room in Atlanta for some time. They are going to be able to track deliveries of things like plywood and supplies that people need. They will be able to know exactly where the trucks are on the way to -- to the different stores.

And Iridium, the satellite company, saw a 3000 percent increase in use last year during the hurricanes. Its biggest problem, as you know, because you were down there, cell phones don't work, so people, all of sudden, decide they want these -- these -- you know, satellite phones, which you can use from anywhere. But everybody wanted them at the last minute.

So, they are going out to their clients and saying -- a lot of their clients are emergency responders -- saying, get your phones early.

Cingular also told me today that they are going to have the ability to set up a mobile station wherever they need to right after a hurricane or an area has been hit. They move in. Their staff can sleep there, work there, and make sure people have telephone communication -- Kyra.

PHILLIPS: Yes, there's a lot of employees that have to make the sacrifice. And it's great to see what these companies are going to do for all those struggling.

But what about the folks that they're going to need to -- to work for them?

VELSHI: Yes. And that's a big problem, because, you know, people want these stores to be open as late as possible to get them the goods that they need.

And, then, they have to evacuate their workers, too. So, what these companies have been telling me is, they are hoping that there will be a little more organization in knowing when areas need to be evacuated. They will keep senior staff in the store as -- as late as they can, but they will make sure that their own employees are safe and out of the area.

They will then try and get back into the stores as quickly as possible right after any sort of disaster, if there is one, because people can't start rebuilding until they can buy their own -- their own materials and goods. Home Depot found that a lot.

They did lose stores last time, and a lot of employees without work. But they are going to try and keep that in a more organized fashion this year. They were pretty good about being right on top of things last year. A lot of people say corporate America worked faster than the government.

PHILLIPS: Well, and we saw results of that in many ways.

VELSHI: Yes.

PHILLIPS: I mean, this is good P.R. for them, if they stay up on this momentum.

VELSHI: Yes.

And -- and, you know, this is one of those things they would like to be known for, because, certainly, Home Depot has been in the news a lot lately for what they pay their CEO. And Wal-Mart is always in the news, being criticized by someone.

So, it's a good opportunity for them to do the right thing. And they emphasize, when they talk to me, that they are just trying to do the right thing. They are not looking for the extra P.R. I'm sort of throwing it in here because of the fact that it is a good thing to do. And -- and I'm happy to. I'm -- I'm always ready to mention them when they are doing something wrong, so I'm happy to mention them when they are doing something right, too.

(LAUGHTER)

PHILLIPS: Got to be balanced.

VELSHI: Yes.

PHILLIPS: Ali Velshi, see you as we get closer to the closing bell.

VELSHI: See you in half-an-hour.

PHILLIPS: All righty.

Well, an Iraqi family accuse U.S. troops of murder, their version of what happened in Hamandiyah, a CNN exclusive -- when LIVE FROM returns.

(BEGIN VIDEOTAPE)

NICOLE LAPIN, CNN CORRESPONDENT: Alberto, it's the first named storm of the 2006 hurricane season. And people along Florida's Gulf Coast are preparing themselves for the strong winds and the much- needed rain.

We have more on that A-storm and other A-storms at CNN.com. This map has a projected path for Alberto, which is expected to reach North Carolina by Thursday morning. Last year, Tropical Storm Arlene kicked off the season when it blasted through Cuba on June 10, reaching the Florida Panhandle the very next day and causing one death.

In 2004, Hurricane Alex got the season off to a pretty late start when it scraped the North Carolina coast on August 3.

One of the most famous letter-A storms didn't arrive until late August 1992. That's when Hurricane Andrew devastated South Florida.

You can keep track of Alberto and find the very latest information all at CNN.com/hurricanes.

For the Dot-Com Desk, I'm Nicole Lapin.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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