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Conventions Return to New Orleans; U.S. Forces in Iraq Work With Iraqi Counterparts; Warren Buffett Donates Billions to Gates Foundation

Aired June 26, 2006 - 15:30   ET

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

(WEATHER REPORT)
KYRA PHILLIPS, CNN ANCHOR: Well it came to symbolize New Orleans failures in the aftermath of Katrina. Now the city's convention center is becoming a symbol of renewal and business looks bright. Sean Callebs reports.

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SEAN CALLEBS, CNN CORRESPONDENT (voice over): It will be hard to replace the images of the suffering at the Convention Center following Hurricane Katrina. But New Orleans is trying to put a new face on one of its most recognizable symbols. The city is hosting its first convention since the storm. And so far, so good.

AMY ROSENBAUM, COVENTIONEER: As I walk up and down the streets, are you with the American Library Association. Welcome. Thank you for coming. We've never been welcomed like we have been welcomed here.

CALLEBS: Amy Rosenbaum is one of 18,000 librarians who come to the crescent city for the American Library Association Convention. And you can't overstate how important their arrival is to the city.

STEPHEN PERRY, CONVENTION & VISITORS BUREAU: This is a very magical week for New Orleans because it's the relaunching of a multi- billion dollar part of our economy.

CALLEBS: This convention alone is expected to bring in $25 million. Very little when compared to the $3 billion the city lost in convention business when Katrina hit. But it's a first step. Tourism officials say two more conventions will be held this week alone and the books are filling up with plans for the fall.

LESLIE BURGER, AMERICAN LIBRARY ASSOCIATION: I would say any convention group that's thinking about coming back to New Orleans, now is the time to come, to be part of this great rebuilding effort.

CALLEBS: A lot of hard work and cold cash went into getting the Convention Center ready for this weekend. Nearly $70 million in restoring and renovating so far. And the work is only about 75 percent complete. At the same time, tourist areas of the city were spruced up as part of a campaign called Companies Coming. And then there's the question of security. The city was worried about its national image on the heels of five teenagers being shot and killed. And the mayor calling in the National Guard to help curb the violence.

PERRY: The timing could have been a little better. But the reality is, fighting crime is good business. It's good for tourism and it's good for the social fabric of the city.

BURGER: If anything, I think it may have reassured our members that things were under control. Did we have some questions? Absolutely. But we were very quick to talk to the city and talk to the convention and visitors bureau about why that had happened and to get a message out to our members immediately.

CALLEBS: And that's the message the city hopes to get out as it launches its first major conference -- that New Orleans is not on the brink of falling apart, but a city slowly, but surely, putting itself back together.

Sean Callebs, CNN, New Orleans.

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PHILLIPS: More on how New Orleans is trying to come back from Katrina tonight on "ANDERSON COOPER 360." He's checking in with the mayor and what's happening with your tax dollars. That's at 10:00 p.m. Eastern, 7:00 Pacific, right here on CNN.

Retake Ramadi. The yet complicated mission for a select group of U.S. and Iraqi forces. CNN's Nic Robertson is with them and takes us inside the Eagle's Nest right after the break.

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GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: 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 is 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.

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PHILLIPS: Well President Bush is fuming over the disclosure of a program that monitors financial transactions of suspected terrorists. Three major newspapers revealed last week and earlier we asked you did these media reports hurt America's national security? Here's what a number of you said.

"I have to commend the media for investigative journalism. However it should not jeopardize the war against terror. It's up to the journalist to judge what they report on and in this case they judged poorly. Shame on that." That comes from Daniel.

Mark from Canada writes this: "Shame on 'The New York Times.' They're less American than I am, I guess."

Jake in Missouri writes: "I am pleased that 'The New York Times' is continuing to expose the secrets of the Bush administration. We cannot give this administration or any other ability to silence the free press."

And finally Robert in Sugarland, Texas, writes this: "Can there be any question that the disclosure of secrets hurt our national security? The arrogance of 'The New York Times' is inexcusable. Their access to the White House should be revoked.

Well first Fallujah, now Ramadi. Iraq insurgents set up shop and put down roots, U.S. and Iraqi forces move in. Our senior international correspondent Nic Robertson is with them. His view now from inside the eagle's nest. You'll only see it right here on CNN.

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NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Running for cover and a ride back to base. There is a sense of relief.

UNIDENTIFIED MALE: Thanks, man.

UNIDENTIFIED MALE: My brother.

ROBERTSON: For several days they were the frontline security for the biggest crackdown on insurgents in Ramadi for months. As the operation scales down, they get a break. So too, the Iraqi troops, rotating back to base as fresh replacements come in.

A sense of relief here, too, that the first and possibly the most dangerous phase of the operation is over without major incident.

(on camera): This crater gives you just some idea of how big the roadside bombs were that were waiting for the troops as they moved in here. This one was so massive it blew a hole right through to the sewer underneath the street.

(voice-over): The focus of the operation, Establishing Eagle's Nest, what is to be an Iraqi outpost in a former insurgent stronghold, is considered a success, freeing local residents.

UNIDENTIFIED MALE: They got to go to the mosque last night for one of the first times. Over 100 or 150 people in that mosque formerly completely used by and dominated by insurgents and insurgent activity. ROBERTSON: So far, however, most residents are staying indoors. The streets are empty.

These ladies flew a white flag, as they came to tell soldiers they'd spotted what they thought might be a car bomb.

UNIDENTIFIED SOLDIER: They need to go over there, to the alley way, if it's right over there. Go to the alley way, we'll meet them over there. We'll go check out the car and make sure it's good.

ROBERTSON: But others venturing out have not been so careful. One driver was shot approaching a new checkpoint.

UNIDENTIFIED SOLDIER: It was an escalation of force. The driver acted erratically and did not heed the warning signs and kept coming past the trigger zone.

ROBERTSON: As dusk fell, worshipers did gather at the nearby Mosque. Outside Iraqi troops gave out fliers detailing new security measures. The mood among prayer-goers near to the new base, one of apprehension and concern. An Iraqi soldier translates for the Imam.

UNIDENTIFIED IMAM (through translator): They say the checkpoint is better, but a lot of roots closed, now. Yes, civilians can't move.

ROBERTSON: As for the presence of insurgents ...

UNIDENTIFIED IMAM (through translator): They say you coming, so nothing.

ROBERTSON: The crowd that gathers gets agitated, a question is shouted.

UNIDENTIFIED MALE (through translator): All the guys coming here too much, we are afraid. No soldiers with him.

ROBERTSON: We leave as the sun sets. Iraqi troops say they suspect some here are connected with the insurgency. Back at eagle's nest it is a quiet night. A chance for some sleep in the relative cool. Daybreaks, equally peacefully, and the back-breaking work fortifying defenses continues in earnest.

UNIDENTIFIED SOLDIER: Right now the insurgents haven't mounted a major attack. That probably means they are planning a major attack, so we want to be prepared for when they come. We want to have the best positions, the best chance of winning.

UNIDENTIFIED SOLDIER: This is our house, sir. The Iraqis have that house right there.

ROBERTSON: So significant is this new outpost, a two-star general stops by.

UNIDENTIFIED GENERAL: The work you are doing with the Iraqi soldiers is almost unprecedented. ROBERTSON: He heaps praise in equal measure on the Iraqi commander, who won't show his face to the camera, out of fear insurgents will target him and his family.

UNIDENTIFIED GENERAL: This is not a paper tiger down here, these guys are fighting the fight. They are very much a value added.

ROBERTSON: Indeed most U.S. officers at eagle's nest rate their Iraqi counter parts among the best they have met, but when will they be ready to run the new post? They have had so much help establishing alone.

MAJ. GEN. RICHARD ZILMER, MARINE COMMANDER: I wouldn't hazard a guess. There are certain security conditions that have to be met, but I think what we have seen in the first days of this operation, right now, this is a great model for success.

ROBERTSON: In the short term, however, there are more pressing questions.

(on camera): While insurgent attacks are down and troops can move around here far more freely than they've been able to do in the past year the big question remains, where are the insurgents gone, when will they attack again?

(voice-over): And when they do strike back, which no one here doubts, will the Iraqi force win the support of the Iraqi residents with their response? Nic Robertson, CNN, Ramadi, Iraq.

(END VIDEOTAPE)

PHILLIPS: Back home at last, the remains of army Private Kristian Menchaca arrived in his native Texas this afternoon. Menchaca and Private Thomas Tucker were killed by insurgents in Iraq last week. Their fellow soldiers conducted a massive search, eventually finding their mutilated and booby trapped bodies. Private Tucker's body is also being returned to his native state of Oregon today.

The death toll in Iraq can start to turn into just another number, so every week we try to bring you the stories behind the numbers. The pictures you are about to see will do just that. Photographer Doug Wells of "The Des Moines Register" reminds us of the high price service members and their families pay, especially the young children. Doug captured these powerful images from the final good-bye for 29-year-old Navy Petty Officer, Jaime S. Jaenke. She was serving as a paramedic when she was killed by a roadside bomb on June 5th in Anbar province. Hundreds of people showed up for her funeral in Iowa Falls. Patriot guard riders escorted her body. A Navy honor guard flanked her coffin and her 9-year-old daughter Kayla clutched a Teddy bear and red balloon. She said bye-bye as later she released that balloon outside.

Fellow service members said at the funeral that Jaenke talked about her daughter all the time. She expressed now that she wanted to serve her country but regretted leaving her little girl behind. Another officer recalled how Jaenke had cared for his injured hand. He said "gosh, she's like an angel." Jaime Jaenke, just one of 2,520 women and men who have sacrificed their lives in Iraq.

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PHILLIPS: Should there be a constitutional amendment banning flag building. The Senate is taking up that touchy issue again, at the top of the hour with a vote possibly later this week. The Senate leaders say the amendment is very close to having the two-thirds majority needed for passage. The House approved a similar amendment just last year.

If it's good enough for a bunch of dead presidents, well, I guess it ought to be good enough for a live governor. Governor Jeb Bush has signed a law making In God We Trust Florida's official motto. The phrase isn't only on U.S. currency, it's been on the Florida state seal since 1868. The bill to officially make it law was inspired by a couple of fourth graders doing a school project.

She was thrust into the spotlight after her daughter, Jon Benet was murdered and three days from now, Patsy Ramsey will be buried next to her child in a suburban Atlanta cemetery. Ramsey died over the weekend after a long battle with ovarian cancer. She was 49. The Jen Benet Ramsey case remains unsolved nearly ten years after that crime. The 6-year-old beauty queen was strangled and beaten. Her body was found in the basement of the Ramsey family home in Boulder, Colorado.

Fisticuffs on a plane, and get this, three women were throwing the punches. It happened Saturday just after Jet Blue flight 561 had left Newark's Liberty Airport. Instead of heading for Puerto Rico, the pilot set down at New York's JFK Airport and the women were turned over to the FBI. Still up in the air if any charges will be filed or why they were even fighting.

Warren Buffett makes it official. The world's second richest man says he's giving much of his fortune away to the world's richest man and his wife, Bill and Melinda Gates. Their charitable foundation will receive $1.5 billion from Buffett every year. The first donation is due next month. Buffett says he admires the foundation's mission to fight disease, reduce poverty and improve education.

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WARREN BUFFETT, INVESTOR: I am enormously proud of them. They are going to have the equivalent of a billion dollar foundation each. I have seen what they have done in the philanthropic arena, both in terms of what they got involved in and how they've gotten involved in it and I couldn't be more proud. I do not believe in inheriting your position in society based on what womb you come from.

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PHILLIPS: Bill and Melinda Gates say they are awed by Buffetts decision. So who does the Bill and Melinda Gates Foundation benefit, and by how much? The answers in this fact check. The Bill and Melinda Gates Foundation is said to be the world's largest philanthropic organization, supporting work in more than 100 countries, they say, with an endowment of more than $29 billion. The foundation focuses on improving the lives of the disadvantaged through health and education initiatives. Roughly 70 percent of the foundation grants last year were directed toward global causes. The rest spent on initiatives here in the United States. According to the organization's website, last year's total grant payments were a little more than $1.3 billion.

Some of the foundation's biggest commitments, the Global Alliance for Vaccines and Immunizations at $1.5 billion, another $1 billion is directed to the United Negro College Fund. On the local level, Seattle's United Way of King County is getting $55 million from the foundation. In all, Bill and Melinda Gates say in the last 12 years they have given more that $10 billion to charitable causes.

California has a Woodstock flashback. Accept, you don't have to watch out for the brown acid though, you have to watch out for the Brown Pelicans on acid. Details ahead on a bird-brained accident. The news keeps coming. We will keep bringing it to you.

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PHILLIPS: All right, checking on CNN's Wolf Blitzer standing by in "THE SITUATION ROOM". Hey, Wolf.

WOLF BLITZER, CNN ANCHOR: Hi, Kyra, thanks very much. The brewing battle here in Washington over the war in Iraq, are troop reductions being timed for political reasons? We'll do a fact check. Plus we will speak with the United States Ambassador in Iraq. Also on fire in an election year. The Senate is on the verge of passing a constitutional amendment to ban flag burning.

Plus, prosecuting the press, should "The New York Times" face legal trouble for reporting on a top secret program? We're covering all sides.

And border wars, a conservative Republican facing angry voters for siding with the president? We'll look at the emotional divide at the ballot box. All that, Kyra, coming up in "THE SITUATION ROOM."

PHILLIPS: Wolf, we will be watching. Alright, a little anger management could be handy here. The guy wearing number 20, well he's the manager of the Tourists, a minor league team manager out of Asheville, North Carolina, a beautiful place by the way. Keep quashing, it just gets weirder and weirder. He gets tossed from the game after arguing a call and proceeds to put on a big show. He tosses a base, buries a base. There he goes. He's going to pour water on a base coming up pretty soon. Then he kicks dirt on the ump, throws bats, quite a show.

He finally gets the message that he's out of here by the way and the Legends did beat the Tourists 5-2.

So, how much wood could a woodchuck chuck? Well, the jury is still out on that one, but we may have the answer to another animal stumper. Why would a pelican fly into your windshield? Well, because he's stinking drunk. California wildlife experts say a brown pelican that collided with a car on the Pacific Coast Highway was likely flying under the influence of a toxin. It's not the first time this toxin produced a microscopic algae. It's caused a peck of trouble in California by the way. It was blamed in the 1961 invasion that inspired, yes, Alfred Hitchcock's "The Birds." In this case the driver was unhurt and the pelican is being treated for a broken foot.

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