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Photo Released of New al Qaeda in Iraq Leader; Al Qaeda Plans Revealed in Seized Documents; Multinational Offensive Targets Taliban; Ground to Be Broken for Pentagon Memorial

Aired June 15, 2006 - 13:00   ET

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

KYRA PHILLIPS, HOST: I'm Kyra Phillips at the CNN world headquarters in Atlanta. The new face of al Qaeda in Iraq. Who is he? And just how close was he to al-Zarqawi's terror raid?
The Pentagon remembers. A special memorial for the day that will never be forgotten.

And around the clock, work to save two lives born as one. An update on the conjoined twins.

Abu Ayyub al-Masri, get used to the name and the face. This is the man the U.S. military believes is the new leader of al Qaeda in Iraq. Why do they think that, and just who is he?

Our senior Pentagon correspondent Jamie McIntyre joins us now with some answers -- Jamie.

JAMIE MCINTYRE, CNN CORRESPONDENT: Well, Kyra, it's not clear exactly who is in charge of al Qaeda in Iraq. But the U.S. military says they think they have a pretty good idea, although they note that the shifting sands of leadership in al Qaeda make it difficult to say who's calling the shots at any particular time.

Today, at the briefing in Baghdad, again, one of the U.S. military briefers there, Major General William Caldwell, said that they believed that the heir apparent to Zarqawi is this man, al-Masri, who also was operating under a pseudonym, which roughly translated, means "the immigrant." He's an Egyptian. And Caldwell says he believes that they're -- he's in charge.

(BEGIN VIDEO CLIP)

MAJ. GEN. WILLIAM CALDWELL, U.S. ARMY: Al-Masri's ability to effectively assert leadership over the al Qaeda cells remains unclear and how many al Qaeda senior leadership members and Sunni terrorists that may attempt to exert their influence and take charge is unknown at this time. We do know that he espouses in open press statements the same tactics of attacking and killing innocent civilians.

(END VIDEO CLIP)

MCINTYRE: And as you saw from that graphic we had up there just a moment ago, it's believed that al-Masri established the first al Qaeda cell in Iraq back in 2003. He trained in Afghanistan sometime during the 1990s, between 1990 and 2001. And they still have a $250,000 reward for information leading to his capture. It's not like the $25 million that was on some of the big, big names in Iraq. But it is nonetheless a substantial amount of money. That's not been increased since he's been named the heir apparent. It's the standing reward, $250,000.

And the U.S. military says it's still sifting through intelligence to decide whether al-Masri will continue to be the top man in Iraq for al Qaeda or whether somebody else will try to move him out of position -- Kyra.

PHILLIPS: So was it Zarqawi that appointed him?

MCINTYRE: It's not clear. He does appear to be the heir apparent. He would be the next in line according to what the U.S. knows about what's going on with al Qaeda in Iraq. But you know, they're the first to admit they don't have perfect clarity on how these things work.

And -- but they're actively working all their intelligence sources. And as you know, the death of Zarqawi and the raid -- the subsequent raids of other locations in and around Baghdad produced what one military briefer described as a treasure trove of intelligence, and the U.S. is milking that as well.

PHILLIPS: Does he have an expertise, bomb making, any type of weapons?

MCINTYRE: He does have an expertise in bomb making. And of course, the -- the improvised explosive device has been the weapon of choice for terrorizing Iraqi citizens and mounting attacks against the U.S. and Iraqi government forces.

So -- so, you know, he's considered to be a dangerous man. And the U.S. has made it clear all along that they did not believe the death of Zarqawi one the death of al Qaeda in Iraq. They were fully prepared that someone would step up to take the reins, and they believe that al-Masri is the man.

PHILLIPS: Jamie McIntyre. Thanks, Jamie.

From Baghdad today, news of a pile of seized documents that al Qaeda in Iraq definitely didn't want to be in the public eye. Details now from CNN's John Vause.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: The information was found before the air strike which killed the leader of al Qaeda in Iraq, Abu Musab al-Zarqawi, and was recovered from computer hardware, thumb drives (ph), a laptop, as well as other documents. According to Iraq's national security adviser, there's a good deal of detail as to why al Qaeda in Iraq considers the current situation as bleak.

MOWAFFAK AL-RUBAIE, IRAQI NATIONAL SECURITY ADVISER: We've managed to confiscate very important documents. These documents belongs to al Qaeda in Iraq, and the insurgents and terrorists in -- working inside Iraq.

We believe that this is the beginning of the end of al Qaeda in Iraq.

VAUSE: And the reason for that optimism, according to these documents, al Qaeda in Iraq has concerns about the growing number of Iraqi security forces providing a shield for U.S. troops. Massive arrest operations, tightening of financial outlets, confiscation of weapons and ammunition. A media campaign which has weakened the influence of the insurgents, presenting them as harmful rather than beneficial.

One of the ways out of this current entanglement -- the word used by al Qaeda -- is to try and involve the United States in another front, preferably a war with Iran. To do that, al Qaeda has been planning to release threatened messages attributed to Shiite Iranians to carry out attacks and stage evidence so it looks like Iran was responsible. Leak information that Iran has ties with terrorist groups and is in possession of weapons of mass destruction and was attempting to carry out terrorist operations in North America and against other western targets.

CNN cannot verify the authenticity of these documents, or the information, however, Iraq's national security adviser says this is just the tip of the iceberg, and more information will be released in coming days.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Well, that captured intelligence, the papers, the hard drives, the laptops, all will be useful for sometime to come. That's what Iraq's national security adviser told CNN just a little while ago. Bottom line, it's getting harder for al Qaeda to hide.

(BEGIN VIDEO CLIP)

AL-RUBAIE: There are many document, many laptops. We found before we captured -- killed al-Zarqawi, during the -- or after we have on the same side he was killed as well and after that it led us to other hideouts all over the country. When we chase them and confiscated some of these materials. So it's a rolling up program actually, started before we killed Abu Musab al Zarqawi, and it continued after that and it's still ongoing process.

(END VIDEO CLIP)

PHILLIPS: Al-Rubaie says that the intel exposes al Qaeda's members, their whereabouts, their tactics, their strategies and their ideology. He predicts that the group's days are numbered.

Now to Afghanistan and Mountain Thrust. That's the name of a major operation by U.S., Afghan and allied troops targeting the Taliban. CNN's Brent Sadler has an exclusive firsthand look. He's with the Canadian forces in Kandahar province. (BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT (voice-over): Canadian combat troops prepare for battle in southern Afghanistan. The sharp end of U.S.-led Operation Mountain Thrust in Kandahar province.

Afghan police are not so well equipped. But they're getting better at killing the Taliban, say the Canadians, learning from each firefight. This combined battle group claims the Taliban is being forced into a corner.

COL. IAN HOPE, COMMANDER, TASK FORCE ORION: I know they're tired. I know they're overwhelmed in this particular area. They still can mount attacks.

SADLER: Afghan police captain Ahmed Masood says villagers are fed up with the insurgent violence and are helping the offensive to succeed by feeding information.

(on camera) Captain, how close are we to the Taliban here?

CAPTAIN AHMED MASOOD, AFGHANISTAN POLICE: One kilometer. And two kilometer in some places.

SADLER (voice-over): But the Taliban know the lay of the land.

MASOOD: Even we have powerful guns, even we have strong guns and airplanes but they know the area better than us.

SADLER: An advantage, but not one that's going to have much tactical effect on these hunters in pursuit of prey.

(on camera) Operation Mountain Thrust has been hitting the Taliban hard from the air and on the ground. It is a multinational effort. These Canadian troops have been out here for the past few days, sweeping this area of Taliban insurgents.

(voice-over) The offensive is now shifting into high gear, calling on some 11,000 American, Canadian, British and Afghan forces.

HOPE: These are multinational efforts where we'll have pressure on Taliban forces throughout the entirety of the southern region of Afghanistan. Simultaneous activity, which is all focused at disrupting them.

SADLER: Charlie Company Task Force Orion completes four days of fighting the determined Taliban at close quarters.

MAJOR BILL FLETCHER, COMMANDER, CHARLIE COMPANY: At which point, two of our personnel were wounded. At that point in time, we had already had our artillery and cutoff and we brought in a 1,000-pound bomb to destroy the target and then finish the sweep through.

SADLER: A tough mission, all around.

PRIVATE NATHAN COVENEY, CHARLIE COMPANY: Yes, I'm glad to be back but time kind of goes slow here and I like being out there, where we're doing the business.

SADLER: The deadly business of defeating their Taliban enemy.

Brent Sadler, CNN, Kandahar province, southern Afghanistan.

(END VIDEOTAPE)

PHILLIPS: Hopefully, what happened to Randal McCloy won't happen to anyone else. That's why President Bush signed a new federal mine safety law today. And by his side, McCloy, the only miner to survive January's disaster at West Virginia's Sago coal mine. Twelve of his co-workers were killed. The new law is response to that and other recent mine accidents. Among its requirements, more underground oxygen supplies and quicker access for rescue teams.

Billions of dollars for hurricane recovery, billions more for the military. The Senate today overwhelmingly approved $66 billion in new spending on the wars in Iraq and Afghanistan. But that's only part of a $94 billion emergency spending bill headed to the president's desk. Almost $20 billion is set aside to help the Gulf Coast recovery from hurricanes Katrina and Rita.

Let's get straight to Carol Lin. She's watching developments on Capitol Hill for us -- Carol.

CAROL LIN, CNN ANCHOR: That's right, Kyra. Showing you pictures shortly of the first and the longest extended debate on the Iraq war in Congress right now.

Republican leaders are essentially daring Democrats to vote against a nonbinding resolution that would, in effect, declare that the U.S. will prevail in the global war on terror. Now, imagine the position that this puts anti-war critics there.

We heard from the House speaker, Dennis Hastert. This is what he had to say.

(BEGIN VIDEO CLIP)

REP. DENNIS HASTERT (R-IL), SPEAKER OF THE HOUSE: We, in this Congress, must show the same steely resolve as those men and women on United Flight 93. The same sense of duty as the first responders who headed up the stairs of the Twin Towers.

We must stand firm in our commitment to fight terrorism and the evil inflicts throughout the world. We must renew our resolve that the actions of evil-doers will not dictate American policy. And we must decide right here, today, what kind of a nation we want to leave for our children and their generation.

(END VIDEO CLIP)

LIN: But also a short time ago, Kyra, we heard from Congressman John Murtha. He made headlines last November when he called for U.S. troops to be withdrawn from Iraq. This was his counterpoint.

(BEGIN VIDEO CLIP)

REP. JOHN MURTHA (D), PENNSYLVANIA: I believe if we redeploy and be ready, that's what I say. I say redeploy and be ready. We are the targets. We are causing the problem.

You know who wants us to stay in Iraq right now? The al Qaeda wants us there because it recruits people for them. China wants us there. North Korea wants us there. Russia wants us there. We're depleting our resources. Just like Russia depleted their resource in Afghanistan. The same thing is happening by the United States.

(END VIDEO CLIP)

LIN: So Kyra, you're seeing a battle between those against the war wanting troops to be pulled out. Republicans trying to seize the initiative after al-Zarqawi was killed in Iraq and daring the Democrats to oppose this war in Iraq by saying, "Hey, look, are you going to vote for the resolution that says America is going to win the global war on terror or not?"

The debate is unfolding. It's expected to last about 10 hours.

PHILLIPS: Carol Lin, thanks so much.

Straight ahead, 9/11 a day most of us can never forget. Well, the Pentagon is preparing to honor for all time those killed that day, right there at that site. LIVE FROM is at the ground-breaking ceremony. We'll take you there live.

(COMMERCIAL BREAK)

PHILLIPS: Rocked and shocked in southern Thailand as dozens of bombs detonate in a matter of moments. When the dust cleared, three people were dead, more than a dozen hurt.

Investigators count a total of 49 homemade bombs, 33 of which exploded as planned. So far, no claims of responsibility for the coordinated attacks that targeted police and government buildings. But the military blames Muslims seeking an independent state. Thailand is a largely Buddhist country except for the Muslim provinces just south of Bangkok.

A vicious attack kills dozens of civilians in Sri Lanka. This is what left -- this, rather, is what's left of a bus that was carrying more than 100 passengers when it hit a land mine this morning. Fifty- eight people died at the scene, including 15 schoolchildren. Six more victims died at the hospitals.

Tamal Tiger separatists have denied responsibility, but Sri Lanka's military isn't buying it. It launched air strikes on rebel strongholds.

Four years, nine months and four days ago the Pentagon was in chaos. American Airlines Flight 77, al Qaeda at the controls, had slammed into it, and 184 people would die. In just a few minutes, the men and women who work there will honor the innocents who were killed. Our Barbara Starr remembers that day all too well and the days after. Barbara's there live in front of the memorial.

Hi, Barbara.

BARBARA STARR, CNN CORRESPONDENT: Hello to you, Kyra.

We are here. The dignitaries are gathering. The family members of those who perished here are gathering. This will be a ground- breaking ceremony for the 9/11 memorial here at the Pentagon, remembering, of course, the 184 people who died here, both in the building and on board American Airlines Flight 77, when the hijacked plane slammed into this building.

This memorial has been a long time coming, but they finally have raised enough money to begin construction on it, the first of the major 9/11 memorials in the country.

Secretary Rumsfeld will be here. The secretary of state, Condoleezza Rice, will be here. A number of members of Congress. But what you see behind me is so many of the family members of those who perished here, as well as many of the first responders -- the firemen, the policemen, the other emergency workers who rushed to this scene on 9/11, where, behind me, of course, the world can remember this was a place of both unbearable tragedy and unimaginable courage.

You know, when the military headquarters of the United States was attacked, one of the amazing things that happened here, as it did in New York, was to see people rush into the flames, rush into the building, to try and recover any of the people who had been wounded or injured.

One of the other things that really is worth recalling at this point, especially on this day, is this is not a day for politics, of course, but a day of remembrance. And what many people remember is that this building did not shut down. The headquarters of the U.S. military, attacked, in flames. People, of course, were tending to the dead and the wounded, but this building did not shut down, Kyra, it kept going.

And one of the major reasons this building kept going was because Defense Secretary Donald Rumsfeld flat out refused to leave. There was certainly advice to do that. He didn't leave. That meant his top staff didn't leave. The view here is, if they were going down, they were all going down together.

And many people, all these years later, really, in the military, see this as the ultimate answer, they say, to the terrorists, that the U.S. military didn't shut down. This was a place, for the military, of no retreat, no surrender. They kept going. And all these years later, now, finally, they are breaking ground for a memorial to honor those who did not make it -- Kyra.

PHILLIPS: Now, Barbara, talk to me a bit about this memorial fund. I understand its president, James Laychak, lost his brother David. And he has been the one really trying to spearhead raising money for this. And I understand he still -- he says his group has raised nearly half of the estimated $22 million need for construction.

Tell me what else needs to be done and how they're efforting (sic) to get more money to finish this project.

STARR: Jim Laychak is an amazing man. Him, as well as several other family members, formed a private foundation after all this happened to try and raise the money. It has been a labor of love. But it has been so difficult for them.

They tell us that they need a total of $32 million, $22 million for the memorial construction itself and, of course, $10 million for an endowment to keep it going in perpetuity.

But they've got enough now. They have, so far, $10.2 million, and that's enough to get the construction going. They certainly are continuing to solicit contributions.

One person that contributed, we will tell you, very privately, Defense Secretary Rumsfeld and his wife made a very significant, very significant, private contribution, to this memorial.

The design is by a very young design team. It was selected some months ago. I know we have shown the rendition of that design. There will be individual markers for each of the people that perished here, information about them.

And the Pentagon, you know, because of security concerns, this whole compound is a very secure facility. But they've made arrangements -- this is the attack site, this is where the memorial will be, and they have made arrangements so it will be built so people can simply walk right up to the memorial, view it, spend a few moments and reflect. There will be some security measures, of course. But they want the public to have maximum access to this memorial.

Inside the Pentagon, behind me, there are other memorials for those who work inside the Pentagon, for those who have access to the inside of the building. But this will be the face for the world to see.

And, again, many people here believe it is the building itself behind me that continues to be the ultimate memorial to the men and women in the U.S. military who continue to serve in the war on terror -- Kyra.

PHILLIPS: Barbara Starr, thank you so much. And that groundbreaking ceremony that Barbara is talking about scheduled to begin in just a few minutes. We are waiting to hear from Donald Rumsfeld. He will make remarks. Also, Jim Laychak, the president of the Pentagon memorial. Also, we will finally see the memorial marker unveiling. We'll bring that to you live as soon as it happens.

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

(COMMERCIAL BREAK)

PHILLIPS: China's health minister reports a new case of bird flu. A 31-year-old man is hospitalized in critical condition. The state-run news agency says the victim is a migrant worker from Shenzhen City, who reportedly fell ill after making several trips to a market where live poultry was sold. Samples will be tested by the World Health Organization before that case is confirmed.

Ads for new drugs are all over TV and magazines, and that's drawing criticism from doctors. Susan Lisovicz joins us live from the New York Stock Exchange with more on that.

Hey, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Kyra.

You know, it's a relatively recent phenomenon that these ads are pervasive. Drug ad spending has quadrupled since 1998 to more than $4 billion, the first full year after the FDA eased its restrictions and allowed prescription drug ads to air on TV.

Now the American Medical Association is asking the government to impose a temporary moratorium on ads for new prescription drugs. The proposal would force pharmaceutical companies to delay advertising new drugs directly to consumers until doctors have time to review their safety and effectiveness.

Doctors say the ads get in the way of the doctor/patient relationship and contribute to rising health care costs, because the drugs advertised are usually the latest, the most expensive brand-name products.

The move comes in the wake of product safety issues involving heavily promoted drugs, including Vioxx, which Merck pulled from the market in 2004 after it was linked to increase risk of heart attacks and stroke.

And another thing they object to, Kyra, is the fact that so many actors play doctors on TV. That really burns them up. And that's a whole separate issue, Kyra.

PHILLIPS: Well, what are the chances that the AMA's proposal will succeed?

LISOVICZ: Well, you can count on the fact that the pharmaceutical industry will be lobbying this. They were -- they were really a key force in getting the ads to appear on TV in the first place. So you're going to see it, so, on both sides of the issue.

The pharmaceutical industry obviously against the plan. It says it's improved promotional campaigns and that it does submit ads for FDA approval in advance.

Right now, the FDA doesn't require a review periods in between a drug's introduction and the start of an ad campaign. There has been some interest in such a measure by Democrats and Republicans. But no bills are moving through Congress, and even if a bill does pass, the FDA says it doesn't have the authority to enforce a moratorium and that the law probably would not survive a constitutional challenge. And you know, the pharmaceutical companies spend a lot of money on getting these drugs to market. And so they want to maximize it after they've spent so much of their money and time on them. So it's a big issue for them.

PHILLIPS: Susan, let's talk about drug stocks. How are they performing today?

(STOCK REPORT)

LISOVICZ: That's the latest from Wall Street. Coming up next hour, a new Google site takes on the works of William Shakespeare.

Kyra, parting is such sweet sorrow, but back to you, my fair maiden.

PHILLIPS: I will see you soon, my dear.

Well, 9/11 is a day that most of us can never forget. The Pentagon is preparing to honor, for all time, those killed that day right there at that site. LIVE FROM is at the groundbreaking ceremony. We're going to take you there live in just a few minutes.

Also ahead this hour, Erin Brockovich, 90210.

(BEGIN VIDEO CLIP)

ERIN BROCKOVICH, ACTIVIST: I thought, how could that be, at a public high school, you have basically an on-shore oil platform? And nobody knows it's there?

(END VIDEO CLIP)

PHILLIPS: Legal crusader takes on an oil-drilling operation that towers over Beverly Hills High. Stay with CNN, the most trusted name in news.

(COMMERCIAL BREAK)

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