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U.S. Troops Coming Home From Iraq?; Iraqi Prime Minister Puts Forward Reconciliation Plan; D.C. Drenched

Aired June 26, 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.
U.S. troop cuts -- America's top general in Iraq has drafted a timetable, but the president remains tight-lipped on the topic.

Mudslides, boat rescues, washed-out roads, the Eastern Seaboard under water, after days of downpours.

The third hour of LIVE FROM starts right now.

George Washington's boat would come in handy today to cross not only the Potomac, but parts of downtown D.C. Sections of the capital are flooded, after days of drenching rains. And it doesn't appear to be letting up.

Our own Bob Franken knows firsthand what we are talking about. He's out in it

Hi, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Hi.

The -- the underpass, the 12th Street underpass, which feeds from the different highways into the District, is getting street-sweeper treatment now.

They have scraped it. The water is all gone. The problem, of course, they worry about is more rain, as you pointed out, which could cause renewed flooding. There have been a torrent of water over the weekend. And it has caused problems everywhere. And there have been problems with motorists at this underpass and at other locations who have encountered the high waters, and then they have made the very wrong call.

(BEGIN VIDEO CLIP)

CAPTAIN DAVID RAY, ALEXANDRIA, VIRGINIA, POLICE DEPARTMENT: We have people stranded in vehicles. And the floods would come along, and people were driving through the water, not realizing that their car can be swept away. And that's just a reminder. When you see standing water on the road, don't try to drive through it.

We had our officers who actually went in and rescued citizens. And they were up to their -- their necks in water, literally up to their necks. (END VIDEO CLIP)

FRANKEN: And that was just a small part of the problem.

They are still trying to clean away roadways that were deluged with mudslides, rail transit systems that are still not up to snuff, different buildings in Washington that had flooding. The Internal Revenue Service building, they are trying to clean out a flooded basement. The National Archives also was affected by flooding.

Kyra, it's a mess. And the weather promises that there may be more of one.

PHILLIPS: See you have been playing with your microphone. It's tough to get a signal down there. Bob, we will keep checking in, though. Thanks so much.

Well, fighting flames on both sides of the roadway. This wildfire is burning in southwestern Utah now on private, state and federal lands. The Kolob fire, as it's called, really has burned 4,800 acres. Only about 3 percent of it is contained. Most trails and several roads are now closed.

And here's the view from Sedona, Arizona, of a fire that we have been keeping an eye on for a week now. Fire crews have managed to corral about half of it and hope to have it fully contained in a couple of days. About 500 homes in scenic Oak Creek Canyon were evacuated last week. Most of the evacuees still have not been able to go back home.

Will U.S. troops start coming home from Iraq as early as the fall? Well, it all depends, says President Bush. There's a lot of buzz in Washington over a troop reduction plan drafted by General George Casey, the top U.S. commander in Iraq. Casey's plan calls for pulling out thousands of U.S. troops as early as September. "The New York Times" says thousand more would leave by the end of next year.

Here's what the president had to say about it this morning.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: In terms of our troop presence there, that decision will be made by General Casey, as well as the sovereign government of Iraq, based upon conditions on the ground. And one of the things that General Casey assured me of, whatever recommendation he makes, it will be aimed toward achieving victory. And that is what we want.

(END VIDEO CLIP)

PHILLIPS: Well, the White House cautions, Casey's plan is not engraved in stone and that it's one of many options now on the table.

U.S. troops overseas, loved ones back home, President Bush says they need all the support they can get. And he sat down at the White House today with members of America Supports You, an outreach program that gives civilian support to military families.

Actor Gary Sinise is part of the effort. He spoke to CNN earlier today.

(BEGIN VIDEO CLIP)

GARY SINISE, ACTOR: Right now, our troops are at war. They are in harm's way. They need to know they are supported. And I -- I don't think they enough of them about the America Supports You Web site.

Anyone who's interested in supporting the troops or finding out how -- how you can, can go to americasupportsyou.mil, and you can see dozens and dozens of ways that you can support the troops, by -- by sending school supplies, helping the wounded, donating phone cards, mileage, so that troops can -- can fly home. There's numerous ways that you can support the troops. It's all there at americasupportsyou.mil.

(END VIDEO CLIP)

PHILLIPS: Well, America Supports You is sponsored by the Defense Department. It's made up of 14 organizations.

Will some Iraqi militants get off the hook, even if they have blood on their hands. Well, Iraq's prime minister is pushing a reconciliation plan aimed at ending the violence in his country. But U.S. lawmakers fear it could also free militants who have killed U.S. soldiers.

Our senior international correspondent, Nic Robertson, has details now from Baghdad.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): When announcing his 24-point reconciliation plan, Nouri al- Maliki, the prime minister, said that those that would be eligible for early release from prison for a pardon would be people not involved in terrorist acts, people who have not been involved in criminal activities, those who haven't committed war crimes or crimes against humanity.

This appears to be ruling out anyone who has been directly involved in the insurgency. He said that anyone who did want to be released from jail would also have to say that they were committed to the new government.

Now, when the U.S. ambassador here, Zalmay Khalilzad, was asked whether or not insurgents could be released under this amnesty, insurgents who had been involved in attacks against U.S. troops, he said that, as far as he was concerned, no irreconcilable elements, people he said such as Baath Party supporters, he said, people who are trying to oust the new Iraqi government, or any al Qaeda elements.

But he did leave the door open for perhaps the nationalist element of insurgency here who have been fighting what they see as a U.S. occupation in Iraq, he did appear to leave the door open there, saying that anyone who agrees to put down their weapons and support the new Iraqi government could be eligible for getting early release from jail.

The Iraqi government has said that it will release about two-and- a-half thousand people, 2,500 people, from the jails. This appears to be an effort as part of this massive -- this 24-point reconciliation plan that is strong on rhetoric, but seems to be short on details.

It does seem to be an effort to win support, perhaps, from the Sunni community, and bring them, perhaps, closer into the way of thinking of the new Shia-dominated government here. That appears to be the effort that Nouri al-Maliki, the prime minister, has laid out here.

Nic Robertson, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Also out of Iraq, a grisly terrorism claim and even more grisly images -- a group linked to al Qaeda claims it has killed four Russian Embassy workers who were abducted three abducted three weeks ago in Baghdad.

An Internet video appears to show one man being beheaded, another already beheaded, and a third being shot. Russia says it still not 100 percent sure about this group's claims.

Two U.S. soldiers are facing charges in the February shooting death of an Iraqi civilian. One is charged with voluntary manslaughter for allegedly shooting the unarmed man outside a house near Ramadi. Both U.S. soldiers are charged with obstruction of justice for allegedly planting an assault rifle near the body. The two are now at a military base in Baghdad, pending a hearing.

Forewarned is forearmed. And if a nuclear North Korea plans to test-fire a long-range ballistic missile, well, the U.S. wants to be ready. A Defense Agency source says that Japan and the U.S. have agreed to have interceptor missiles at the ready. A new agreement will put advance Patriot missiles on U.S. bases in Japan for the first time.

Just when and where are the missiles going? No definite answer yet. And the notion of a diplomatic solution hasn't been abandoned. South Korean and Chinese officials are meeting right now to consider other ways to diffuse that nuclear standoff.

(BEGIN VIDEO CLIP)

BUSH: I have made clear to our partners on this issue -- that would be Japan and South Korea and China and Russia -- that we need to send a focused message to the North Koreans, and that this launch is -- you know, is provocative.

And I was pleased to hear that the Chinese have delivered that message to the North Koreans. And we would hope that the leader in North Korea listen to the Chinese.

So, we don't know. We don't know. That's part of the problem. It's a nontransparent society that ought to be sharing its intentions with -- with the rest of the world.

(END VIDEO CLIP)

PHILLIPS: Recent intelligence reports say that North Korea's most advanced missiles may be able to reach parts of the U.S.

Well, no one disputes that she killed her five children. The question now is was, Andrea Yates insane at the time? The jury in her first trial said no. An appeals court overturned her conviction last year, citing erroneous testimony. Now she's back on trial, once again claiming she didn't know what she was doing when she drowned her five children one by one in the bathtub.

In opening statements, her attorney and the prosecutor described her demeanor in the hours after, beginning with the first officer on the scene.

(BEGIN VIDEO CLIP)

KAYLYNN WILLIFORD, PROSECUTOR: He's going to tell you that he walked into the living room area, where she was seated on the love seat, and he looked her in the eye. And she looked at him and he said, "Do you know what you have done?"

And she looked him in the eye and said, "Yes, I do."

GEORGE PARNHAM, ATTORNEY FOR ANDREA YATES: Less than 24 hours after she drowns her children, she talked to the individuals, and sometimes to nobody at all.

She talks about a prophecy. And the prophecy is that these children of hers, the children that she gave birth to, the ones whose pictures you have seen, needed to die in order to be saved, because Andrea Yates was such a bad mother that she was causing these children to deteriorate and eventually end up in the fires of eternal damnation.

(END VIDEO CLIP)

PHILLIPS: As in her first trial, Yates is being tried only in three of the five deaths. If convicted, she faces a life sentence.

It happened in Vegas, but it's not staying there. Police release surveillance tape of a sudden and deadly shooting at a casino. Will it help them catch a killer? LIVE FROM has the latest.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BUSH: The disclosure of this program is disgraceful. We're at war with a bunch of people who want to hurt the United States of America. And for people to leak that program, and for a newspaper to publish it, does great harm to the United States of America.

What we were doing was the right thing. Congress was aware of it, and we were within the law to do so.

The American people expect this government to protect our constitutional liberties, and at the same time make sure we understand what the terrorists are trying to do.

The 9/11 Commission recommended that the government be robust in tracing money. If you want to figure out what the terrorists are doing, you try to follow their money. And that's exactly what we're doing.

And the fact that a newspaper disclosed it makes it harder to win this war on terror.

(END VIDEO CLIP)

PHILLIPS: Well, President Bush is fuming over the disclosure of a program that monitors financial transactions of suspected terrorists. Three major newspapers revealed it last week.

Earlier, we asked you, did these media reports hurt America's national security?

Here is what you said.

This comes from Andrew in San Juan, Costa Rica: "Reporting on tracking terrorists did threaten national security. Every time the covert activities of the government, in the name of national security, are uncovered, we increase the probability that terrorists will be driven further underground."

Bob writes from Wed -- Redmond, Washington: "'The New York Times' definitely made it harder to fight the war on terror by printing the article on tracking the terrorists' finances. Maybe we should add 'The Times' to the axis of evil."

Then Bill from New York writes: "President Bush's outrage over his latest spying operation is to be expected. He has chosen to violate our civil rights at every opportunity. The media has not been robust enough in exposing this dangerous president."

Appreciate your e-mails.

Well, warlords and anarchy has ruled Somalia for years. But, now, is the African nation in even worse hands? An Islamic militia controls that capital, after defeating U.S.-backed secular warlords. The militia is led by a cleric who the U.S. believes is linked to al Qaeda. That's stoking fears that Somalia will become another haven for Osama bin Laden's terror network.

The cleric tells the Associated Press that he will only support a Somalian government based on Islam. He says Somalia is a Muslim nation and its people are also Muslim, 100 percent. Well, coalition troops trying to flush out the Taliban today. Operation Mountain Trust, as it's called, targets enemy forces in eastern and southern Afghanistan. Over the weekend, three coalition soldiers were killed in that fighting, as the operation goes on -- some tough words for the Taliban.

In an exclusive interview with CNN's Wolf Blitzer, Afghan President Hamid Karzai says the group will not stage a comeback.

(BEGIN VIDEO CLIP, "LATE EDITION")

HAMID KARZAI, AFGHAN PRESIDENT: There is no way, Mr. Blitzer, that the Taliban can come back and take power in Afghanistan. The Afghan people will never, never allow that.

(END VIDEO CLIP)

PHILLIPS: Well, the Afghan president also responded to an audiotape purported to be from Mullah Omar. He says the former Taliban leader is a coward who sends young fighters to their deaths, while he hides.

A frightening trend: so-called community guns stashed outside, so any criminal can use them and put them back for the next bad guy -- that's ahead.

Stay with CNN, the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: Hurricanes Katrina and Rita devastated the Gulf Coast last year, but they're having the opposite effect on one major industry there.

Susan Lisovicz, live from the New York Stock Exchange, with that story.

Hey, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Kyra.

Well, it would be Louisiana's casino industry which is enjoying its biggest boom ever. In this case, though, it's capitalizing on the misfortune of its neighbors. That's because last year's hurricanes destroyed many competing casinos in neighboring Mississippi, and also because the cleanup and recovery has brought thousands of workers with time and money on their hands and limited entertainment options.

Spending at Louisiana's 16 casinos was up nearly 10.5 percent last month over last year's pre-hurricane levels. Most of the increase has been centered into New Orleans and Baton Rouge, which both saw big population shifts because of Katrina, and in Lake Charles, where an influx of workers repairing Rita damage has joined the regular customers from neighboring Texas -- Kyra.

PHILLIPS: So, is this trend likely to continue? LISOVICZ: Well, folks in Mississippi say, no way, Kyra.

(LAUGHTER)

LISOVICZ: Experts say that a $5 billion rebuilding plan for Mississippi's coastal casinos will soon relegate Louisiana's casinos back to second-class status.

Mississippi has traditionally dominated the Gulf South in terms of gambling revenue. And with all the new money pouring into redevelopment, many experts believe that the state will actually rank behind only Las Vegas and Atlantic City, in terms of prestige, size, and the number of gamblers.

Another factor in Mississippi's expected resurgence, a plan to allow land-based casinos, as well as barges, moored along the beach. Nationally, gambling has seen a major resurgence, after a slowdown following the terrorist attacks of September 11, 2001, when many folks simply just didn't want to travel, period -- Kyra.

PHILLIPS: All right. Well, how is everything looking on Wall Street right now?

LISOVICZ: Well, we have got a modest rally. Investors seem to be somewhat cautious today, even though the rate decision by the Federal Reserve is not until Thursday. Most analysts expect another quarter-point rate hike, although some folks are saying that perhaps a half-a-point.

Again, we will be talking about the accompanying statement that comes with it. In the meantime, light volume today, but we have some gains, the Dow industrials right now up 30 points, or better than a quarter-of-a-percent. The Nasdaq composite, meanwhile, is up nine points, or about half-a-percent.

And that is the latest from Wall Street.

Stay with us. LIVE FROM will be right back.

(COMMERCIAL BREAK)

PHILLIPS: Shoot-out at the Silver Nugget, it sounds like a classic Western, but it was for real. And it was deadly.

Rob McMillan with our Las Vegas affiliate KVBC has more, as police search for the casino killer that was caught on tape.

(BEGIN VIDEOTAPE)

ROB MCMILLAN, KVBC REPORTER (voice-over): What started off as a normal night at the Silver Nugget Casino turned deadly in a matter of seconds.

Check out this surveillance video. At 4:23 in the morning, this group starts to walk out of the bar. But then it appears that, for some reason, people start arguing. All of a sudden, a man in a white shirt throws a punch. And that is what starts this confrontation, heading towards its deadly conclusion. A black man in his late teens or early 20s pulls out a gun and begins to fire. A few minutes later, police discover the carnage this suspect left behind.

SEAN WALKER, PUBLIC INFORMATION OFFICER, NORTH LAS VEGAS POLICE DEPARTMENT: When the officers arrived, they found two victims of gunshot wounds. One was deceased at the scene. The other received a non-life-threatening gunshot wound.

MCMILLAN: Police say it's amazing that people are so quick to commit these kinds of crimes in casinos, where the ceilings are often lined with surveillance cameras. But what concerns police the most is how this man seems to be enjoying himself as he's firing.

WALKER: It's troubling, even to us. I mean, you can see it. And, really, I guess it would go without saying, if you are going to pull out a gun and start shooting off rounds inside a casino, you don't really have any concern for human beings.

MCMILLAN: However, police hope that, by releasing this video, someone out there can get a good luck at the suspect and call detectives with that information, so, hopefully, this will be the last time this man will do anything like this again.

(END VIDEOTAPE)

PHILLIPS: The Dallas City Council says that fake guns are a real problem. The city's Public Safety Committee will soon discuss a proposal to ban the sale of toy guns. The ordinance could also outlaw children from playing with them in public.

Supporters believe that would help protect kids and police. But critics say the measure would be hard to enforce and wouldn't stop accidental police shootings.

Community guns, they're a growing problem for many cities. And gang members stash weapons in outdoor hiding places for someone else to use later. But law enforcement is on to their game now.

Dan Lothian shows us in this report from "AMERICAN MORNING."

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): Thirty-five-year- old landscaper Antonio Someto (ph) was born in Angola, but recently met a violent death south of Boston.

UNIDENTIFIED FEMALE: Somebody murdered my brother.

LOTHIAN: It's believed, the gun used in his murder could have been a so-called community weapon, which is typically stored outdoors and shared by multiple gang members.

PAUL WALSH, BRISTOL COUNTY DISTRICT ATTORNEY: They will put it in one area where these five individuals know where it is, and they have access to it. LOTHIAN: Now, for the first time, federal ATF agents and local law enforcement officers have launched a major effort using a dozen bomb-sniffing dogs to seek out community guns.

JIM MCNALLY, BUREAU OF ALCOHOL, TOBACCO AND FIREARMS: Don't leave your guns outside anymore.

LOTHIAN: ATF Special Agent Jim McNally say dogs like Herbie (ph) have the right skills to do the job.

MCNALLY: Because of their ability to find explosive residue, they can find guns.

LOTHIAN: They targeted a half-dozen sites recently in the city of New Bedford, a coastal working-class community dealing with a rash of gang violence, searching under trash bins, around playgrounds, and in overgrown fields.

MCNALLY: Because we know that -- that the gangs are putting guns outside, so that they won't be in the house and linked to the gang members, should they get caught.

LOTHIAN (on camera): And finding those weapons takes care of another concern: that innocent children out in the neighborhood might just run across a gun, pick it up, and end up in the middle of a tragic accident.

MICHAEL SULLIVAN, U.S. ATTORNEY: Parents should be able to let their children play in the public parks and playgrounds, without fear that they will come across a loaded firearm.

LOTHIAN (voice-over): In this first sweep, nothing was found, but the effort is expected to expand statewide...

UNIDENTIFIED FEMALE: I'm glad that something is being done.

MCNALLY: This is a way to shake things up, to let them know we can find guns.

LOTHIAN: ... an effort to disrupt the way gang members operate.

Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

PHILLIPS: And you can start your morning off right with Soledad O'Brien and Miles O'Brien weekday mornings at 6:00 Eastern.

(WEATHER REPORT)

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