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Arnold Schwarzenegger Tours California-Mexico Border; Arizona Firefighters Battle Raging Wildfire

Aired June 21, 2006 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Cooler and calmer in southern Colorado, giving firefighters a bit of a break now. They're battling a huge wildfire that broke out Sunday. People in three subdivisions near Fort Garland have been ordered out. Others nearby have been advised to leave.
Folks in Sedona, Arizona, also have been chased out of their homes, as a wildfire races down Oak Creek Canyon. Firefighters are lighting backfires, trying to stop that.

We do expect to hear from Arizona's governor this hour. We will bring it to you live when we do.

President Bush is in Europe, but it's the Middle East, Asia, even Cuba that are dominating the agenda.

CNN White House correspondent Elaine Quijano has the latest.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Bush says late August seems too long to wait for Iran's response to a U.S. and European offer of incentives to return to nuclear talks.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It shouldn't take the Iranians that long to analyze what is a reasonable deal.

QUIJANO: President Bush got what he wanted from his meetings in Vienna, a united front with the European Union against Iran developing a nuclear weapon.

WOLFGANG SCHUSSEL, PRESIDENT, EUROPEAN UNION: I think now is the right moment for Iran to take this offer, to grab it, and to negotiate.

QUIJANO: Tough words as well for North Korea, amid reports that the country is preparing to test a long-range missile.

BUSH: The North Koreans have made agreements with us in the past. And we expect them to keep their agreements.

QUIJANO: Even on contentious issues, President Bush and European leaders appeared anxious to strike a new tone, on Iraq, a desire to move beyond lingering animosity. BUSH: And, look, people didn't agree with my decision on Iraq. And I understand that. What's past is past, and what's ahead is a hopeful democracy in the Middle East.

QUIJANO: On the U.S. detention center at Guantanamo, European opposition to the facility remains firm. And though the president reiterated he wants the center shut down eventually, he insisted some detainees are too dangerous to release.

BUSH: I'm waiting for the Supreme Court of the United States to determine the proper venue in which these people can be tried.

QUIJANO: Austria's chancellor says President Bush understands European concerns over Guantanamo.

SCHUSSEL: We got clear, clear signals and clear commitments from the American side, no torture, no extraordinary or extra-territorial positions to deal with the terrorists.

QUIJANO: President Bush was confronted with poll numbers that indicate Europeans believe U.S. policies are more harmful than world peace than helpful, more harmful than even Iran.

BUSH: That's absurd, my statement. That is, the United States is -- we will defend ourselves, but, at the same time, we're actively working with our partners to spread peace and democracy. And, so, whoever says that is -- it's an absurd statement.

QUIJANO: The European Union president was quick to defend the United States with a reminder of the past.

SCHUSSEL: I think Austria is really good example to show that America has something to do with freedom, democracy, prosperity, development. Without the participation of America, what fate would have Europe?

QUIJANO (on camera): At the same time, Austria's chancellor said there can never be a credible victory in the war on terror if the U.S. and its allies give up values like democracy, rule of law and human rights.

Elaine Quijano, CNN, Vienna.

(END VIDEOTAPE)

PHILLIPS: And we are going to hear more about the U.S. position on Iran on "LOU DOBBS TONIGHT." John Bolton, the U.S. ambassador to the U.N., is Lou's guest at 6:00 p.m. Eastern, right here on CNN.

President Bush insists the coalition is making progress in Iraq. Here's an update on coalition members and those pulling out.

(BEGIN VIDEOTAPE)

UNIDENTIFIED CORRESPONDENT (voice-over): The U.S.-led coalition force in Iraq now totals 28 nations. That's down from more than 35 countries in the early stages of the war.

Of the coalition's total of 152,000 troops, the majority are Americans. Right now, there are about 132,000 U.S. troops in Iraq. Britain, President Bush's closest ally in the war, has the second highest number of troops in Iraq, about 8,000.

South Korea has the third most number of troops in Iraq, with about 3,200 based in the northern part of the country. Three countries, Poland, Australia and Georgia, each have about 900 troops deployed in Iraq. The remaining troops are from other coalition members. The coalition will soon lose another member. Japan says it will pull out its 600 non-combat troops.

Australia is also hinting of a possible pullout, saying it will review its troop deployment by the end of the year.

(END VIDEOTAPE)

PHILLIPS: Well, it may have been aimed at militants, but missed. An Israeli missile hit a house in southern Gaza today. Palestinians say a pregnant woman and her brother were killed and at least 10 others were hurt, four of them children. Israel confirms, an airstrike was launched and missed its target.

Ever since 9/11, there has been speculation that a 20th hijacker was supposed to have been involved, someone who, for one reason or another, missed United Airlines Flight 93, which crashed in Pennsylvania.

Now there is a 54-minute video said to be produced by al Qaeda that identifies the would-be 20th hijacker as a Saudi named Fawaz al- Nashimi. Well, al-Nashimi died in 2004 in a gun battle with Saudi forces. U.S. authorities are dubious of the online claims.

Murder, kidnapping, conspiracy, larceny, all committed, allegedly, against a disabled Iraqi civilian by American forces. We expect to hear the charges spelled out at a military briefing just about an hour from now at Camp Pendleton, California. That's where seven U.S. Marines and a Navy corpsman are being held on suspicious of killing 54-year-old Hashim Ibrahim Awad in cold blood and trying to cover it up.

It happened in April near the Iraqi town of Hamandiyah. The dead man's family tells CNN, the implicated troops were pressuring Awad to be an informant.

CNN's John Vause takes us to the root of the Hamandiyah investigation now.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice-over): As this evidence receipt shows, U.S. investigators returned to Hamandiyah last week to exhume the body of man allegedly killed in cold blood by U.S. Marines, one body bag containing one body of deceased Hashim Ibrahim Awad, taken from his grave site on June 6. (on camera): The family of Hashim Ibrahim Awad allege that U.S. forces pressured him to act an as informant, to gather information on who was planning roadside bombs and carrying out other attacks. The family says he repeatedly refused, because he considered it to be without honor. And, because he didn't agree, the family says he was murdered and evidence was staged to make him look like a dead insurgent.

(voice-over): Awad was 54 years old and, according to his family, had trouble walking because of wounds he suffered during the Iraq-Iran War.

In the early hours of April 26, a Wednesday, witnesses say six to eight troops on foot patrol came to their small village of Hamandiyah on the western outskirts of Baghdad and went directly to Awad's house, according to his brother, Sadoon.

SADOON IBRAHIM AWAD, BROTHER OF HASHIM IBRAHIM AWAD (through translator): They didn't search his house. They took him immediately. He was seized by two soldiers, each on one of his sides, because he was disabled.

He goes on to say, his brother was taken towards the main street.

This rough map drawn by Awad's brother indicates how he says other members of the patrol then went to the home of this man, Farhan Ahmed Hussein.

FARHAN AHMED HUSSEIN, NEIGHBOR (through translator): They usually search the house and they ask us if we have a weapon. The U.S. forces allow us to have one rifle. But, that night, they even took my only rifle and my shovel outside the house.

Hussein goes on to say he later heard gunshots.

Awad's brother believes he was taken to the main road, just a few hundred feet from his home, and shot.

"We heard gunshots," he says. "It was about 100 gunshots, maybe less."

The death report issued by local police says Awad's brother was handed to the family the next day, along within an assault rifle and shovel.

Awad's family allege, U.S. forces tried to buy their silence, first with an offer of $2,000, which then increased to $10,000 over this past weekend.

"But I refused," says Awad's brother. "I told them, I don't need money. I told them, the truth is that you took my brother. You tortured him, and you killed him, although he was disabled and old."

An American military court will likely decide if those accusations are true.

John Vause, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Well, we expect a news conference from Camp Pendleton regarding the April 26 incident in Hamandiyah and murder charges against the U.S. Marines and that Navy corpsman. We will bring it to you live at 4:00 p.m. Eastern.

Well, back now to that prison shoot-out in Tallahassee, Florida. A federal agent and a prison guard are reportedly -- well, who reportedly was about to be arrested are dead.

The latest now from the scene -- our Tallahassee affiliate WCTV and reporter Julie Montanaro brings us the latest.

(BEGIN VIDEOTAPE)

JULIE MONTANARO, WCTV REPORTER: We are here at the federal detention center in Tallahassee, Florida.

The shots rang out early this morning, about 7:40. We can confirm now that two people are dead and another person is in critical condition at the hospital this afternoon. What we can tell you, six guards here at the prison were indicted yesterday by a federal grand jury on charges that they had sex with inmates in exchange for bringing contraband into the prison and other favors.

Now, those indictments handed down yesterday. And, apparently, the federal agent had come here to the prison this morning to arrest those guards when the shots rang out.

Officers are telling us that one of the guards resisted his arrest. And that is what sparked this gun battle. It happened in the lobby. And it worked its way out on to the front lawn. That's where we're standing right now. You can see the barricades behind me. Officers are working diligently to mark the evidence and the bullet fragments and such that are on the pavement there in front of the main lobby.

I'm Julie Montanaro in Tallahassee -- back to you.

(END VIDEOTAPE)

PHILLIPS: Well, from South America to Midtown Manhattan, a huge drug bust -- hear why police were inspired to initiate this crackdown -- more LIVE FROM coming up next.

(COMMERCIAL BREAK)

PHILLIPS: Hot and dry and not a drop of rain in sight, it's been that way for weeks in a number of states now.

Reynolds Wolf is in our Weather Center looking at who might face a summer drought -- Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: Absolutely. You know, it's just ridiculous in parts of the desert Southwest. They're so desperate for rainfall, and they're not just seeing some in the places where they desperately need it. The dry conditions persist.

As we make our way a little bit back, a little bit farther to the east from the Four Corners, we are seeing a few spritzes here and there, mainly south of Albuquerque, not too far from Santa Fe. But this is not the type of rainfall that they so desperately need.

Much of this is what we refer to as virga, which is precipitation that is so light that, as it falls to the lower levels of the atmosphere, it actually evaporates. So, you can see it, but it really doesn't have the effect that is so desired.

Meanwhile, back over towards the Great Lakes, the western half of the Great Lakes, we are seeing things begin to fire up south of Green Bay. You have got Milwaukee and farther to the north and to the northwest, up near Oshkosh, we see some cells that are popping up. These are stronger, not severe as of yet. But that area is going to be under that severe thunderstorm watch until 6:00 Central time, so, certainly an area of concern.

Other parts of the Ohio Valley and south of the Great Lakes, we are seeing a few showers pop up, some of these just to south of Lake Erie. We Here is Cleveland. Here is the town of Erie itself, Erie, Pennsylvania. And you see just a few cells here, again, not severe levels.

Now, what we are going to be seeing through the rest of the afternoon, into the evening hours, the potential for severe weather again in the Great Lakes region, to the south of that, into parts of Kentucky and into Tennessee, all the way to the Gulf Coast.

We have a chance of a few scattered showers right along the coastline, but places like Atlanta, Georgia, Nashville, Tennessee, blistering hot, but no break at all in terms of that heat.

Let's talk about the temperatures that you can expect for today. In fact, many places well into the 100s, when you factor in the humidity, like, in Memphis, 97 degrees right now. But, with the humidity, it feels like it's above 100 degrees -- a stifling hot day in Washington, 88 degrees. But forget about the humidity. We have got 109, dry heat in Phoenix, 106 in Las Vegas.

That's the latest on your forecast. Let's send it back to you.

PHILLIPS: All right, Reynolds, thanks.

WOLF: You bet.

PHILLIPS: Want to get straight to Fredricka Whitfield, working a story for us in the newsroom.

Looks like Governor Schwarzenegger is a busy man today. FREDRICKA WHITFIELD, CNN CORRESPONDENT: He is indeed. He is now near the San Diego area, along the Mexico-California border there. Actually, let's listen in right now. He's visiting the National Guard troops who are there on the border.

(JOINED IN PROGRESS)

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: ... inspection tour here today.

I also want to thank Darryl Griffin (ph) from the Border Patrol and also Lieutenant Colonel Brookman (ph), who have given me a very extensive briefing on the whole situation here. And I want to thank both the National Guard and the Border Patrol very much for their extraordinary work in coordinating all of this work so well.

I also want to thank Matt Bettenhausen from -- who is the director of homeland security, who is with us here somewhere, right over here.

Thank you very much, also.

I came down here just to see how our National Guard will be used when they come down here. We have already 233 National Guard troops down here on the border. There will be additional Guard units that will be coming down all the way up to July 15, altogether 1,000.

I had a terrific tour right now with -- by helicopter to see the border. I think this reinforced my belief that the federal government has to do much more to secure our borders. It's extremely important that they take this seriously, that we need more manpower. We need more infrastructure in order to secure our borders, because we have to do everything that we can to stop the flow of undocumented immigrants, to stop the flow of the human trafficking, the drug smuggling, and also the potential of terrorists coming across this border.

I was very impressed with the work that we have seen here today. And I think they're all doing a great job. I think what is also important is for me to let you know that I'm disappointed at the idea that maybe the federal government will not come up with an agreement and with true reform of our immigration laws.

I think it's extremely important that we have reform on immigration laws and that we do everything we can to put the pressure on the federal government, because it will be totally inexcusable for them to walk away from that and saying, this year, we couldn't do it, and maybe take this whole thing on a road show and have debates out there on the road, because we know what the facts are.

We know that we need to secure the borders. We know that we have to provide workers from the other side for our businesses here in California. We have to be able to do that in a legal way. So, I think there's a lot of reform that needs to be done. And I think it's important for us to put the pressure on the federal government.

I think that that's all I have to say right now. I also want to just comment quickly and say that the National Guard, the thousands of men and women that will be down at the borders, that will mean that our total National Guards for California, we will reduce from 20,000 to 19,000, and 2,500 overseas in Afghanistan and in Iraq. So, that will reduce it down to 69,500. That is still plenty of National Guards here for...

WHITFIELD: You have been listening to California Governor Arnold Schwarzenegger there, meeting with many of the 233 National Guard troops that are along the California-Mexico border.

What's interesting here is that he is talking about how, by mid- July, about 1,000 National Guard troops will be along the border there to try to beef up this plan of reinforcing the border along Mexico, he -- finally jumping on board with the Bush plan, after being rather reticent about it for a long time, Kyra.

He was the last governor of three border states, New Mexico and Arizona, to sign off on this agreement. And now you see him very much endorsing the idea that it's absolutely necessary, in his view and in the view of the Bush administration, to have National Guard troops along the border.

PHILLIPS: Fred, thanks.

Well, is it life and death or pork-barrel politics? Two big-city mayors who think they have been shortchanged went to Capitol Hill today to talk about homeland security grants.

CNN's homeland security correspondent Jeanne Meserve joins me with the facts and figures and some of the fears -- hey, Jeanne.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Key, Kyra.

Officials from New York and Washington, D.C., call it preposterous, disgraceful, and irrational that their homeland security grant funding has been reduced, because, they say, their risk is still so high. Both cities have been hit by terrorists before. New York is the nation's financial and media center, home of the Empire State Building, the Statue of Liberty and the Brooklyn Bridge; Washington, of course, the seat of government, chock-full of monuments.

But D.C.'s police chief said, DHS' risked-based system ranked his city's application for funds at the bottom 25 percent of those submitted.

(BEGIN VIDEO CLIP)

CHARLES RAMSEY, D.C. POLICE CHIEF: How could we possibly fall that far that quickly? Now, maybe someone's just pulling my leg, because I'm constantly getting phone calls. I have got a briefing tomorrow over at the FBI about different investigations and so forth. I have not seen anything that would make us fall that far.

It makes absolutely no sense. So, whatever formula they came up with, they need to rethink it, because it's not going to get you to the . it won't get you off the ground. (END VIDEO CLIP)

MESERVE: An undersecretary of homeland security says it was not a case of the risk in New York and Washington being lowered, but the risk elsewhere being raised.

(BEGIN VIDEO CLIP)

GEORGE FORESMAN, UNDERSECRETARY, DEPARTMENT OF HOMELAND SECURITY: It is not that New York City's or the national capital region's risk is less. It's because the measure of risk in other areas outside of New York and the national capital region has increased. Forty-four of the 46 urban areas saw their relative risk measure rise this year, in some cases by three- or four-fold.

(END VIDEO CLIP)

MESERVE: Another contributing factor, there is less money to distribute this year. Funding for the Urban Area Security Initiative grants has dropped 15 percent. And you know what? Congress appropriates that -- back to you, Kyra.

PHILLIPS: So, what impact is this likely to have in New York and Washington?

MESERVE: Well, Ray Kelly, the commissioner of police in New York, said today that a plan they had to secure the Financial District that would involve things like cameras and license plate readers and -- and barriers would have to be postponed.

In the national capital region, they're saying they're still making their decisions about what is going to be cut. One thing that could be impacted is an interoperable communications system they had. It transmits video and data and voice. And it is dedicated solely to public safety. It's really trailblazing. They want to -- they want to see it spread out across the region. And they're afraid they won't be able to do that without this money.

PHILLIPS: Jeanne Meserve, thank you.

Stay tuned to CNN day and night for the latest security updates.

Well, wildfires raging out West -- live pictures now from our affiliate KTTV. We are going to stay on the story. The news keeps coming. We will keep bringing it to you -- more LIVE FROM next.

(COMMERCIAL BREAK)

PHILLIPS: Well, we're following these brushfires in two states, California and Arizona in particular.

These are live pictures via our affiliate KTTV out of Los Angeles. This is Rancho Palos Verdes, an upscale, quite beautiful area in Los Angeles. You can actually see where the helicopters are -- are trying to douse out those flames, still little small pockets of flames in that canyon. You can see how close the fire is getting to these homes. I mean, they're just -- the flames are right on top of a number of these homes. I mean, we're talking million-plus-dollar homes in this area.

We're following those live pictures. We will let you know about firefighting efforts there.

Meanwhile, folks in Sedona, Arizona, have been chased out of their homes, as a wildfire races down Oak Creek Canyon. Firefighters are lighting backfires now, trying to stop it.

Fire information officer Kristy Bryner is in Flagstaff, Arizona. She joins us on the phone.

Kristy, what can you tell us about the firefighting efforts right now?

KRISTY BRYNER, ARIZONA FIRE INFORMATION OFFICER: Firefighters are focusing now on Oak Creek Canyon. This is an area that has been of concern since the fire began. It's something that we expected to happen at some point.

We were prepared for it, and now it's starting to happen. What the flames are doing are actually kind of creeping down into the canyon wall and down towards the canyon. Of course, Oak Creek Canyon has been evacuated, and we are -- the firefighters are on the ground there kind of waiting for this fire to get to them now.

PHILLIPS: Have you been able to figure out what caused this fire? We had heard reports it was from a campfire, possibly some homeless people that had started this fire. Has that been confirmed?

BRYNER: Yes. Law enforcement has determined that the cause is from an escaped campfire. They suspect it is from a transient camp. And they're continuing their investigation into this.

PHILLIPS: And how many people have had to be evacuated thus far? And are you still evacuating people?

BRYNER: We aren't evacuating any more people at this time. Right now, the only area that's evacuated is Oak Creek Canyon. There's about 400 homes and businesses along that area. Previously, we had evacuated about 100 homes in northern-most Sedona. That evacuation is going to be lifted this evening.

PHILLIPS: Now, Kristy, you -- you know this well. A lot of us know Sedona and how beautiful it is. It's a shame to see these flames in such an amazing area. How much is it affecting the landscape and what people go to Sedona to see?

BRYNER: Well, currently, of course, it's affecting it dramatically.

You have got smoke impact and ash impact all over the area. Now, once the fire is out, you're going to see a lot less trees and a lot more burned-out areas. So, it won't look the same. Of course, Sedona is more -- more well known for their red rocks. And that's not going to be too affected.

PHILLIPS: Well, that's good to hear. That is what I was thinking about, was the red rock formations.

BRYNER: Right.

PHILLIPS: How many firefighters are out there now, Kristy?

BRYNER: We have about 600 total personnel working on the fire. And that includes 10 hotshot crews.

PHILLIPS: OK. And explain to our viewers what a hotshot crew is.

BRYNER: They are the type one crews. Those are the folks that are most highly trained to go in the more difficult, complex fire situations.

PHILLIPS: And do you have any reports of any injuries or deaths because of this fire yet or these firefighters -- or the blaze?

BRYNER: No. Fingers crossed, we have had no injuries to speak of at this point. And we have had no structures burned either.

PHILLIPS: That's good to hear.

Kristy Bryner, with the fire information -- or fire information officer there in Sedona, Arizona, sure appreciate you calling in to us.

BRYNER: You're welcome, Kyra.

PHILLIPS: Well, here's a challenge for golfers. Play 18 before the lava starts flowing. It's par for the course in Java, Indonesia. We are serious, where intrepid golfers tee off in the shadow of an active volcano. Mount Merapi is only about six miles over the next green. But club members say, fear not. You will find, if you tee off after 9:00 a.m., that's when the winds shift, sending the plumes of smoke back toward that volcano.

Budweiser's parent may be thinking about trying a stiffer drink.

Stephanie Elam is live at the New York Stock Exchange with that story -- Stephanie.

STEPHANIE ELAM, CNN CORRESPONDENT: Hi, Kyra. That's right.

Anheuser-Busch, which, of course, makes Budweiser, along with dozens of other beers, may be thinking of diving into the hard liquor business. According to "The Wall Street Journal," the company's head of U.S. beer operations told a group of state liquor administrators the company was thinking of expanding its horizons, this in order to boost fizzling beer sales.

And, believe it or not, the beer industry has actually lost five points of market share to wine and spirits since 1995. I guess people feel a little bit more ritzy when they're holding a glass of wine, Kyra.

(LAUGHTER)

PHILLIPS: Well, some would say. It depends on what kind of glass you put the beer in.

(LAUGHTER)

PHILLIPS: But, anyway, will this be completely new for Anheuser or does the company have other ideas?

ELAM: Well, Anheuser has some -- made some tentative moves in the past. Last year, it formed a division to develop and test distilled spirits.

Jekyll and Hyde liqueur is the first product out there. And it's being tested right now in some markets. The company also has a partnership with Bacardi to make flavored malt beverages. And they're calling those malternatives.

But the recent remarks are definitely the company's boldest comments about moving into the hard stuff thus far.

PHILLIPS: All right, tell us how the market is doing.

ELAM: Well, spirits are running rather high here today.

We have got a broad rally under way. Investors are cheering along better-than-expected quarterly profits from investor bank Morgan Stanley and package delivery giant FedEx.

Checking the latest numbers right now, the Dow Jones industrials are on the upside by 125 points, at 11099. And taking a look at the Nasdaq, the composite is adding just about -- just under 2 percent.

And here's a fun little tidbit. Piaggio, the company that makes the iconic Vespa, is getting set to go public. The move is a sign of Piaggio's return to health. It was actually on the verge of collapse until 2003. And that's when the former CEO of Telecom Italia took control. He led Piaggio to post record sales in just two years. The IPO is slated for July 11, just in case you think you want to get a piece of that action.

That's the latest from Wall Street. LIVE FROM rolls on right after the break.

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