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Terror Plot to Flood New York Foiled; Bush Holds Wide-Ranging Press Conference; U.K. Remembers Victims of Last Year's Bombings; Soldier Tries to Break Into Airplane Cockpit

Aired July 07, 2006 - 13:00   ET

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


FREDRICKA WHITFIELD, HOST: Hello. I'm Fredricka Whitfield in for Kyra Phillips.
A New York terror plot: how the FBI foiled terrorists. Is there still a threat?

Remembering one of London's dark days. The attack on the transit system one year ago. Is London any safer now?

And the North Korea threat. Is the U.S. missile defense system ready to intercept?

LIVE FROM begins right now.

New York City suddenly under water. Imagine the casualties, the chaos, the panic. It appears that was the scene envisioned by a terror group. One of the alleged plotters in custody. Here's what we know right now.

Counter terrorism sources confirm the FBI uncovered a plot several months ago to blow up the Holland Tunnel and a bridge in the New York area. The plot reportedly never got past the planning stage. The details, including how many people were involved, are still unclear, but authorities in Lebanon have one man in custody connected with the plot.

As for today the FBI says there is no specific or credible threat to facilities or transportation in New York City or anywhere else in the United States.

CNN is all over this developing story. Allan Chernoff is in the New York City area. Kelli Arena in Washington. We also have our ears to the ground overseas, and we're waiting for a live news conference from the FBI. Let's begin in the nation's capital with justice correspondent Kelli Arena -- Kelli.

KELLI ARENA, CNN CORRESPONDENT: Fred, you mentioned that there is a person in custody in Beirut. His name is Assem Hammoud. And I am told that the Lebanese security forces worked very closely with U.S. counterparts in this investigation, which you said has been going on for several months.

We are told by several officials that FBI agents first picked up intelligence on Internet chat rooms. They moved very quickly, took the threat very seriously. The information that was gathered at the time indicated that there was a plot to attack tunnels in the lower part of Manhattan. There are, we were told, another seven people that the FBI is looking for, along with partners in Lebanon and in other countries, as well, who are allegedly thought to be involved in this plot.

As you mentioned earlier, as well, the FBI is saying that there is no imminent threat to either New York City or any place else in the United States that they know of at this time.

WHITFIELD: And so how is homeland security proceeding forward, saying there is no imminent threat, but at the same time they're being very cognizant of any chatter out there, any rumblings?

ARENA: That's right. Well, Fred, as you know, you go, through any tunnel in New York or, over any bridge in New York, there's a great deal of security. New York is, as a matter of fact, on a higher level of security than the rest of the nation is on a regular day-to- day basis.

This is something that all officials -- we just heard from Michael Chertoff -- that took very seriously. They moved as quickly as they could. Chertoff defending the decision to move in quickly, saying we don't want to wait until the fuse is lit. We want to move as quickly as we can so that we can protect lives and that there's not too long a road between, you know, the plan and then the operational stage of any attack. And so he says if you wait that long you're foolish. You can't protect people that way.

WHITFIELD: And at the same time homeland security or anybody else in the Bush administration, happy or not so much that this information is now public?

ARENA: Well, investigators, I can tell you for sure, are not thrilled that this information came to light as early as it did. This plan was very much in the preliminary stages. As I said, they are still looking for several people that they believe were part of this plot.

Any time information gets out prematurely when an investigation is still underway -- and this investigation is still very much under way -- it does not help investigators that are working across the globe to find people and to get more sourced information. So this does, you know, lead to a lot of dead ends and a lot of clamming up.

WHITFIELD: All right. Kelli Arena in Washington. Thanks so much.

We are awaiting a news conference with the FBI and the New York City police commissioner, taking place in New York. When that happens, we'll bring that to you.

Meantime, on to New York City and one of the reported targets of the plot. Our senior correspondent, Allan Chernoff, is outside the Holland Tunnel.

Allan, what do you know? ALLAN CHERNOFF, CNN CORRESPONDENT: Fredricka, the Holland Tunnel entrance right behind me has two police officers armed and checking vehicles as they enter the tunnel right here. There are several other entrances in Manhattan. And on the New Jersey side, plenty of police officers there.

When I entered the tunnel early this morning, there was a police officer from the Port Authority of New York and New Jersey, which oversees the tunnel. A police officer in front of every single toll plaza. That, you typically do not see. You often do see the police there but not to the same level, not with the same level of preparedness.

Inside of the tunnel, there are cameras every two to 300 feet. Every inch of that tunnel can be observed on closed circuit television. So, as Kelli said, certainly the security is very tight over here. It has been for some time. But today particularly so.

In spite of all that, we've been speaking with drivers as they have been approaching the tunnel. The fact is with today's news, some of them are on edge.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Now I'm scared. Because I didn't know about it. I live in Jersey.

UNIDENTIFIED MALE: I think it's a bunch of baloneys. It's nothing to worry about.

(END VIDEO CLIP)

CHERNOFF: And in fact, the tunnels themselves are well below the river. In fact, they are tucked in under the river bed. At their deepest point, they are 93 feet below the river, below the top of the very river.

And you mentioned the idea of actually flooding Lower Manhattan. That was the theory that the terrorists apparently had in mind. Lower Manhattan is a full mile south of where we're standing, and engineers say it just would not be feasible to be able to flood the Wall Street area by blowing up portions of the Holland Tunnel -- Fredricka.

WHITFIELD: And so Allan, we are saying that almost all bridges and tunnels in the Manhattan area are seeing the same kind of presence that you see there at the Holland Tunnel?

CHERNOFF: Yes, certainly there is tight security out today. There's no Question about that. I mean whenever there is this sort of report there is extra presence but as we have said, New York has been on high, high security alert ever since 9/11, every single day.

WHITFIELD: Allan Chernoff in New York City. Thanks so much.

Staying abreast of the foiled plot. President Bush in Chicago at the same time mixing campaign fund raising with a wide-ranging news conference. He covered everything from high gas prices to the threat posed by a nuclear North Korea.

CNN's Suzanne Malveaux is traveling with the president. She joins us now with an update -- Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Well, Fred, it was President Bush's first press conference outside of Washington. Really a sense to show that he is listening to the American people and their concerns outside of the political circles.

President Bush started off announcing good numbers, job numbers about 121,000 new jobs in June. And then he went on to talk about the importance of immigration reform.

But a lot of the Questions, at least coming from the White House press corps, had to do with North Korea and the stand. Where does the United States go from here?

President Bush made it very, very clear that it is important for the international community to speak with one voice. He talked about the importance of the U.N. Security Council drawing red lines to show that North Korea's behavior in launching those missiles was unacceptable. And then he went on to say, in his words, about the slow process of diplomacy, saying that it was cumbersome, that diplomacy takes time, that ultimately he believes that the U.S. strategy will work to bring all those members of the six-party talks to bear and put pressure on North Korea to come back to the negotiating table.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The problem with diplomacy, it take a while to get something done. You're acting alone, you can move quickly. When you're rallying world opinion, and trying to come up with the right language at the United Nations to send a clear signal, it takes a while.

(END VIDEO CLIP)

MALVEAUX: And, Fred, of course President Bush also addressing the specifics about North Korea's missile launches, saying for that -- at least that long-range missile, he said our capabilities, there was a reasonable chance the United States had of shooting that down, had it not failed -- Fred.

WHITFIELD: Suzanne Malveaux, traveling with the president in Chicago.

Today's date 7/7. It's symbolic to Britons as 9/11 is to Americans. Although there is sadness on this anniversary of the London bombings, there is also a collective sense of outrage and defiance aimed at terrorists of any description.

A year ago Kings Cross Station was awash in smoke and sirens. Today it's once again packed with commuters.

CNN's Richard Quest joins us from there. But earlier today, Richard, somber tributes.

RICHARD QUEST, CNN CORRESPONDENT: Indeed, it was the mood of the day because in many ways, Fredricka, Kings Cross had become the focal point for so many of the floral tributes.

And today I can tell you behind me just beyond the London taxis, that famous symbol of the British capital, just behind there, more people are once again laying wreaths in tribute, writing notes, giving their memories of the events that took place one year ago.

It's an entirely, appropriate, typical British summer day today. The weather is overcast. It is threatening rain. And the mood is entirely appropriate for what is taking place.

This is tonight's London newspaper, called "The Evening Standard". You might be familiar with it. It has basically a picture of one of the survivors. A year ago she lost her legs. Today she walked to Russell Square -- that's where the bus bomber took place -- to remember those who lost their lives. There are pages and pages, as you would well expect. Look at that picture. A lady on the tube this morning with some flowers just in quiet contemplation.

But Fredricka, I think the point about -- to make about today is, while the prime minister made the issue that we would remember, people got on with their everyday lives. My voice is raised, because I'm battling the Friday evening rush hour. So Fredricka, London is continuing, but there's slightly a leaden step amongst the people on the tube tonight.

WHITFIELD: So Richard, while people are continuing, at the same time just reflecting a year ago, the number of commuters on the railway or in the tube today any different from, say, more than a year ago? Has it -- has it kind of dwindled at all?

QUEST: Nope. Nope. Not a bit. And that's for two reasons. As the newspapers say, Londoners won't be bowed. They will continue about their business as usual, but it also -- you must remember in a city of eight million, like New York City, there is no option. If you want to get from A to B, you have to take the tube.

And you know, Fredricka, a year ago I stood in this very place, day after day reporting on the 52 deaths, reporting on the tributes, reporting on the affair. But today I can tell you it was a mood just like then. It has to continue. People go about their everyday business.

One note just to bear in mind, as we're speaking, just about a mile and a half away, in one of London's most beautiful parks, there is a service of commemoration and a memorial service being attended by the British prime minister.

WHITFIELD: Very good. All right. Richard Quest at Kings Cross in London. Thanks so much.

One arrest, a multitude of fears. What can authorities tell us about the foiled plot to attack New York's tunnels? We're about to hear from the FBI in a news conference this hour. Stay with CNN for that, live from New York.

(COMMERCIAL BREAK)

WHITFIELD: It sounds like the story line from an action movie. Blow up the New York tunnels, flood lower Manhattan, cause pandemonium. It never happened, but it's not entirely fiction. CNN has confirmed it was a terror plot, alleged, intercepted and shut down by federal agents. A man is in custody in Lebanon, and the hunt is on for others who may be connected.

Details of the plan first emerge in today's "New York Daily News". Their reporting, disputed by others, said so-called jihadists intended to destroy the Holland Tunnel beneath the Hudson River and flood the city, much like Hurricane Katrina did New Orleans.

New Yorkers point out that even Lower Manhattan is higher than the river, and it wouldn't flood.

Still, the feds are taking the investigation seriously, as they do every lead they come across.

Pat D'Amuro spent decades with the FBI and was the assistant director of the bureau in New York. He's now a CNN security analyst.

Good to see you.

All right. Well, Michael Chertoff says that they don't want to wait until the fuse is lit, so to speak. At the same time, how might agents navigate the chatter? What's real? What's not legit?

PAT D'AMURO, CNN SECURITY ANALYST: ... and then you begin to vet that information out.

This first came to the FBI through sources and techniques that they were able to capture information about this particular threat. They worked a joint investigation with Lebanese authorities, the internal security force, who did a tremendous job in this matter and uncovered this one individual and brought him into custody. Now, apparently there are several other individuals that are also involved in this plot.

WHITFIELD: So does this exemplify much better communication, intercepting of communication, whether it be by translators or perhaps even informants?

D'AMURO: Well, absolutely. You know, since 9/11 so many more people now are working counter terrorism issues globally, and that information sharing is increasing.

What's interesting about Lebanon is that this is a country that recently expelled the Syrians and are trying to rebuild their own country. And they're doing this with a shortage of funds and technical equipment. So a joint investigation with the FBI was significant for them to be able to develop this type of intelligence.

WHITFIELD: So is this evidence to you that there is a real improved relations between the U.S. and other countries when it comes into sharing intelligence, because for so long that has been a criticism, that sharing intelligence whether it be from country to country or agency to agency, had been hampered?

D'AMURO: Well, there's been a sharing. There's always been a sharing to a certain extent of intelligence information. But that information sharing since 9/11 has greatly been enhanced.

The problem with this particular investigation is that it was not ready to be disclosed to the media. So whoever leaked this information to the media caused a real strain on the relationship between the Lebanese and the FBI.

WHITFIELD: So how do you see that as being problematic?

D'AMURO: It's problematic because this was in the planning stages. There's still other individuals out there that information has to be developed on. These individuals, not all of them are in Lebanon, according to what I'm hearing. But is going to make it that more difficult now to collect the evidence that's need to bring these people to justice.

WHITFIELD: So our Kelli Arena reported earlier that about seven others possibly are being sought. You think by revealing this plan, the foiling of this stage of the plan, certainly could interfere with that?

D'AMURO: It doesn't help. And it also strains the relationship with the internal security force in Lebanon.

WHITFIELD: What do you think the next step is at this stage? We're seeing beefed up presence at a number of the tunnels and bridges in New York City. Does that mean there are other areas, whether it be in New York or other places, that are left more vulnerable now?

D'AMURO: Well, right now the information that we received indicates that it was only Lower Manhattan and that explosive material was not yet obtained, that it was -- this was still in the early planning phases.

There may be, quote, "may be" a loose connection to Zarqawi's group. That is still being looked at. So their investigation will continue and will continue to try to look for these other individuals and figure out exactly what was happening.

WHITFIELD: And as we await the news conference out of New York involving the FBI and the New York police commissioner, what's your expectation about how forthright or what they may want to reveal, given that you and others are now saying that publicizing this foiling of the plot may be a distraction or hamper other efforts to get these other seven possible suspects?

D'AMURO: Well, I think security services globally do not want to hold back threat information that could prevent a terrorist attack. Most organizations will look at that and find a way of sharing that intelligence and that information. The problem comes into play are when the techniques are disclosed and that a premature disclosure of information causes that investigation to become more difficult to conduct.

WHITFIELD: Pat D'Amuro, thanks so much for your time and expertise.

D'AMURO: Thank you. Take care.

WHITFIELD: Now straight to the newsroom. Let's check in with Tony Harris with details on a developing story -- Tony.

TONY HARRIS, CNN ANCHOR: Yes, Fred, this is a story that we're following. This is the story of an active duty Army soldier, recently back from Iraq, who apparently lost it last night on a plane in a pretty dramatic way.

Neftali Alexander Liamendez was traveling with his brother on a Delta flight headed from New York to Tampa. And Fred, here's what happens.

As the plane is on approach into Tampa Airport, Liamendez apparently tried to force his way into the cockpit twice. He would take off running and at full speed crash into the cockpit door. Now, who knows what he was thinking of doing if he had managed to get into the cockpit. But he was unarmed, and the door was locked, so he was unable to get into the cockpit.

He was finally taken down by other passengers on that plane. Now, Liamendez's brother again, who he was traveling with, said his brother has been suffering mental problems related to his service in Iraq and, in fact, may have been en route to Tampa to get some help.

The plane landed safely, and Liamendez was taken into custody. Again, this was on a flight from -- my understanding is from La Guardia to Tampa, which is what I believe I mentioned just a moment ago.

So right now Liamendez is being examined. He may still face charges for attempting to break into the plane's cockpit, but so far no charges have been filed.

So Fred, can you imagine how scary this was for everyone else on that plane, as this active duty Army soldier, running up and down the aisle, trying to crash into the cockpit door. The door held.

WHITFIELD: Yes, frightening and -- frightening and sad.

HARRIS: Absolutely.

WHITFIELD: All right. Thanks so much, Tony Harris.

HARRIS: OK.

WHITFIELD: Of course we continue to watch New York City there, where the FBI is planning a press conference any moment now involving that foiled terror plot that we've been reporting.

Meantime, we're going to press on. Where do terrorists get the information? The training ground is no longer a place on a map but online. A look at the jihad being waged on the Web when LIVE FROM continues.

(COMMERCIAL BREAK)

WHITFIELD: Straight to New York now on the FBI press conference. Let's listen in.

MARK J. MERSHON, FBI: The joint terrorism task force is, of course, comprised of a number of federal, state, and local agencies, all involved in this terrorism campaign, of course. Every day these folks go out and rule out threats to the city and to America. We're here today to discuss what we believe is the real deal.

For most of the year we have been focusing on a group of al Qaeda followers who have targeted the Hudson River tubes that connect New Jersey to Lower Manhattan.

We believe we intercepted this group early in the plotting and that in fact the plan has largely been disrupted. We have identified a number of the players around the globe, some of whom are in custody of foreign services.

The real story here is the symphony of cooperation and coordination, not just in the New York-New Jersey metropolitan area, but frankly, around the world with a number of intelligence and investigative services.

It's beyond textbook. It's, in fact, been storybook. While I say that, it's probably appropriate to make a comment on the unprofessional behavior of the unknown individual who, in fact, disclosed prematurely this investigation; clearly, someone who doesn't understand the fragility of international relations.

We've had a number of uncomfortable questions and some upsetting with these foreign intelligence services that have been working with us on a daily basis. Our executives at FBI headquarters and agents overseas are working to shore up those relationships.

We will note that there is one subject in custody who does face criminal charges in Lebanon. He's a 31-year-old Lebanese, Assem Hammoud. The Lebanese authorities within the last hour issued a press release, and that press release discusses those charges but also references this individual's confession, his adherence to the philosophy of al Qaeda, his swearing of allegiance to Osama bin Laden and the fact that he was the mastermind of this plot and it was to play out in later this year, October or November of '06.

We certainly want to commend the independent work and the alliance we had with the Lebanese internal security force.

Next up will be the superintendent of the Port Authority Police Department, Sam Plumeri. SAM PLUMERI, SUPERINTENDENT, PORT AUTHORITY POLICE DEPARTMENT: Thank you, director.

The safety and security of those who use our facilities are top priorities for the Port Authority. All told, approximately 450 million passengers use our tunnels, our bridges, airports, PATH rail system and bus terminals annually.

As you can see here today, the Port Authority coordinates its security initiatives with the FBI, the NYPD, as well as other federal, state, and local law enforcement entities. All of us share the common goal of protecting the people of this region.

Since 9/11, at all of the Port Authority facilities, we have instituted police patrols, deployment of our department's special operations division, our utilization of radioactive radiation and explosive detective technologies, and random vehicle inspections.

Let me be clear: we provide this level of security day in and day out. Since 9/11, the Port Authority has invested $2.3 billion on agency-wide security initiatives.

We also want to take a moment, if we may, to remind the public that they can assist us. Citizens are encouraged to remain vigilant and report any suspicious activity observed at any Port Authority facility by calling the Port Authority police at 1-800-828-PAPD or - 7273. Thank you very much -- Commissioner.

RAY KELLY, COMMISSIONER, NYPD: The New York City Police Department has been involved in this investigation as a result of our membership on the joint terrorist task force. We certainly share concerns with the Port Authority police about transportation facilities in Lower Manhattan.

Now, as the assistant director said, this plot was in the planning stage. It had not reached anything close to operational -- being operational. Even so, we...

MARK J. MERSHON, ASSISTANT DIRECTOR, NEW YORK FIELD OFFICE, FBI: Good afternoon, and thanks for your patience.

Mark Mershon, the assistant director for the FBI, in charge of operations for greater New York.

The Joint Terrorism Task Force is, of course, comprised of a number of federal, state and local agencies all involved in this terrorism campaign, of course. Every day, these folks go out and rule out threats to the city and to America.

We're here today to discuss what we believe is the real deal.

For most of the year, we have been focusing on a group of Al Qaeda followers who have targeted the Hudson River tubes that connect New Jersey with Lower Manhattan. We believe we intercepted this group early in the plotting and that in fact the plan has largely been disrupted. We've identified a number of the players around the globe, some of whom are in custody of foreign services.

The real story here is the symphony of cooperation and coordination not just in the New York-New Jersey metropolitan area, but, frankly, around the world with a number of intelligence and investigative services. It's beyond textbook; it's, in fact, been storybook.

And while I say that, it's probably appropriate to make a comment on the unprofessional behavior of the unknown individual who, in fact, disclosed prematurely this investigation; clearly someone who doesn't understand the fragility of international relations.

We've had a number of uncomfortable questions and some upsetment with these foreign intelligence services that have been working with us on a daily basis. Our executives at FBI headquarters and agents overseas are working to shore up those relationships.

We will note that there is one subject in custody who does face criminal charges in Lebanon. He's a 31-year-old Lebanese, Assem Hammoud.

The Lebanese authorities within the last hour issued a press release. And that press release discusses those charges, but also references this individual's confession, his adherence to the philosophy of Al Qaeda, his swearing of allegiance to Osama bin Laden, and the fact that he was the mastermind of this plot and it was to play out in later this year, October or November of '06.

We certainly want to commend the independent work and the alliance we had with the Lebanese internal security force.

Next up will be the superintendent of the Port Authority Police Department, Sam Plumeri.

SAMUEL PLUMERI, SUPERINTENDENT, POLICE DEPARTMENT, PORT AUTHORITY OF NEW YORK AND NEW JERSEY: Thank you, Director.

The safety and security of those who use our facilities are top priorities for the Port Authority. All told, approximately 450 million passengers use our tunnels, our bridges, airports, PATH rail system and bus terminals annually.

As you can see here today, the Port Authority coordinates its security initiatives with the FBI, the NYPD, as well as other federal, state and local law enforcement entities. All of us share the common goal of protecting the people of this region.

Since 9/11, at all of the Port Authority facilities, we have instituted police patrols, deployment of our department's Special Operations Division, our utilization of radioactive radiation and explosive detective technologies, and random vehicle inspections. Let me be clear: We provide this level of security day in and day out. Since 9/11, the Port Authority has invested $2.3 billion on agency-wide security initiatives.

We also want to take a moment, if we may, to remind the public that they can assist us. Citizens are encouraged to remain vigilant and report any suspicious activity observed at any Port Authority facility by calling the Port Authority police at 1-800-828-PAPD, or 7273.

Thank you very much.

MERSHON: Commissioner?

COMMISSIONER RAY KELLY, NEW YORK POLICE DEPARTMENT: The New York City Police Department has been involved in this investigation as a result of our membership on the Joint Terrorism Task Force. We certainly share concerns with the Port Authority Police about transportation facilities in Lower Manhattan.

Now, as the assistant director said, this plot was in the planning stage. It had not reached anything close to operational -- being operational. Even so, we deployed additional resources in Lower Manhattan for the last several weeks.

Now, riders in the New York City subway system may have seen additional officers on the system this morning, and in an abundance of caution we put officers there. And it just happened to be coincidental with this particular uncovering or plot because it was and is the anniversary of the bombings on the transit system in London.

We will continue to focus our critical response vehicles and our Hercules teams on transportation facilities.

Again, we had no specific information about any possible attack on the transit system today.

As far as this particular plot is concerned, I think it tells us two things: First, that we're able to disrupt plots such as this as a result of good intelligence and very close coordination with law enforcement throughout the world; and secondly, that New York still remains in the cross-hairs of the terrorists.

MERSHON: Mayor?

MAYOR MICHAEL BLOOMBERG (R-NYC): Mark, on behalf of the 8 million people of New York, I want to thank the FBI for helping to continue to protect our city.

Over the past four and a half years, the New York City Police Department has developed nationally recognized counterterrorism and intelligent divisions. And much of their effectiveness stems from their close and constant working relationship with the FBI and the Joint Terrorism Task Force. And that relationship has been very much in evidence throughout this investigation, the one that Mark has just briefed us on.

We recognize that the threats that Mark has just described are very serious. And we are continuing to cooperate closely with the FBI in this ongoing investigation.

Coming as it does on the first anniversary of the terrible terror bombings in London, this is one more reminder in today's world our safety can be menaced from any corner of the globe.

And that is precisely why we have built up our capacity to monitor and thwart such threats, a capacity that includes the deployment of the NYPD's best investigators to cities around the world.

Along with the FBI, we will continue to pursue this investigation vigorously. And rest assured, we will do everything in our power to keep our city safe.

New Yorkers understand and accept the risks and the requirements of the post-9/11 world, I think. And we understand that the secret to our continued freedom is courage. Because if we become fearful or overly suspicious of our neighbors, if we withdraw into our homes, then terrorists will have won without firing a shot. And we can't let that happen and we won't let that happen.

And I'm confident that, as over the past four years, New Yorkers will continue to go about their daily lives and entrust their safety to the experts.

Let me reiterate that if you see anything, leave it to the professionals. Just pick up the phone. If you can't remember any particular number, 911 in emergency or 311, and they will make sure the information gets to the right people.

QUESTION: Mark, let me ask you, was this a sting operation? Could you please clarify that?

MERSHON: No, this was an investigation which started from an intelligence standpoint and evolved into exceptional cooperation with intelligence and investigative services overseas, driven largely by the Joint Terrorism Task Force, the partnership of federal, state and local agencies we spoke of.

And matured to the point where the Lebanese felt comfortable and we all felt it was appropriate to take off this individual who is in custody, and the charges have been announced today.

QUESTION: (OFF-MIKE) monitoring chatrooms or what?

MERSHON: We're not discussing the predication for this particular investigation. I hope you understand how we protect sources and methods at times.

QUESTION: Is there any way of knowing whether it was the Holland Tunnel as was reported in the newspaper today, or if it was the transit system as a whole? Can we get any more specific at all so the viewers have an idea of what (OFF-MIKE)

PLUMERI: We at the Port Authority protect all of our facilities, as I mentioned earlier, equally on a daily basis. Our operational initiatives are in place every day. That's at all of our facilities. I think you will see that. Some you see and some you don't see.

So we take them all very, very seriously. All of our facilities are protected. And we want to make sure that the traveling public that uses our facilities every day know that, and we continue to move along in that direction.

QUESTION: But, Mark, is there any way you can elaborate on whether it was, in fact, a plot about the Holland Tunnel or about other tunnels or other bridges as well?

MERSHON: The paper this morning indicated the Holland Tunnel. In fact, this group had referenced specifically only the PATH tunnels. But we have had a number of threats over the months and years, frankly, which would target all of the conveyances across the river.

QUESTION: Commissioner Kelly, you have a number of detectives placed worldwide. Can you give us a idea of whether any of your NYPD personnel in foreign posts played a role in this intelligence- gathering and what role...

(CROSSTALK)

KELLY: They didn't in this particular case, no.

QUESTION: Commissioner Kelly, I know that there's only so much any of you can say at this time. But if you can elaborate somewhat for the people watching -- you said this was in the planning stage where you caught this as opposed to the operational stage. A little bit more perhaps on what you mean by the planning phase.

KELLY: Well, precisely that.

There was a lot of discussion. There was planning being done. But there was no indication that there was any movement toward these facilities, anybody...

QUESTION: For example, materials have been secured...

KELLY: That's correct. There's no indication that materials were secured or that specific reconnaissance was done. But there was a lot of discussion and what we call planning being done.

QUESTION: Mr. Mershon, is there evidence that the suspect in Lebanon was in contact with Al Qaeda in Iraq (OFF-MIKE)

MERSHON: We know that he has acknowledged -- this is the main subject in custody in Lebanon. We know that he has acknowledged pledging a bay'ah, or allegiance, to Osama bin Laden, and he proclaims himself to be a member of Al Qaeda.

The details beyond that I don't have available for you right now. QUESTION: Mark, my sources tell me there's a Canadian connection involved. Can you confirm this or give us more details?

MERSHON: I will tell you that there are a total of six foreign governments who are assisting in this investigation. We're not prepared, without charges, to discuss the level of cooperation or identify those countries. I hope you respect that.

QUESTION: Is there any idea how many suspects we're potentially talking about here? Is it six? Is it 12? Is it dozens? The range?

MERSHON: We believe we have what I'll call eight principal players. And that we have them largely identified. As I say, some are in custody. One of those has been charged formally in Lebanon.

QUESTION: Mr. Mershon, beyond the suspect's words about his connections to Al Qaeda, is there any evidence of material support or financial support that he has gotten, or any links to other leaders in the terrorist world?

MERSHON: Again, without criminal charges here, this is not matured to the point where we are prepared to discuss the evidence that we have. It's awkward. As I say, this was not the date that we planned to unfold this investigation.

So it remains classified, by the way. So there's very limited detail that we can, in fact, discuss.

QUESTION: Is there any indication that any of these people in the virtual cell, I guess, have ever traveled to the United States or possess visas to travel to the United States?

MERSHON: It's our understanding at this point that none of the individuals who are, as we say, principal players in this plot have been in the United States. And they are certainly not here now.

QUESTION: Mr. Mershon, how often do you hear of these plots that we don't hear about? And did the release now jeopardize this investigation?

MERSHON: I would say that the release makes the investigation more difficult for us. It has greatly complicated what otherwise has been a very smooth relationship, a very effective partnership with a number of overseas allied agencies. But we will continue to move forward with the investigation, certainly.

QUESTION: Can you tell us what continents the suspects are on?

MERSHON: I would say three.

QUESTION: On which continent?

(LAUGHTER)

MERSHON: Please. QUESTION: We're hearing from law enforcement sources that this plot was leaked to the Daily News to get more funding from DHS. How do you respond to the critics who see this as a...

(CROSSTALK)

MERSHON: Absolutely, totally untrue. I'd like to know who told you that. Absolutely not true.

QUESTION: Commissioner Kelly...

MERSHON: And by the way, well -- yes?

QUESTION: Commissioner Kelly, an earlier stage of this investigation, going back, say, about a year or so ago, when we started seeing the checks of the backpacks in the subways, that sort of thing; is this tied to that? Is this part of the same investigation?

KELLY: No, that's not tied.

If you recall, we put the bag checks in the subway system after the London bombings -- actually, after the second attempt at London bombings. It went in July 23 of last year.

So, no, it was not related to this specific case. QUESTION: Assistant Director Mershon, can I ask you -- earlier you said that you thought this was the real deal. Can you explain to us what leads you to believe that this was an imminent or a grave threat to us?

MERSHON: I'll use the term that the planning or the plotting for this attack had matured to the point where it appeared the individuals were about to move forward. This is to supplement the commissioner's talk here.

They were about to go to a phase where they would attempt to surveil targets, establish a regimen of attack and acquire the resources necessary to effectuate the attacks. And at that point I think it's entirely appropriate to take it down.

QUESTION: Are you sure that this plot is thwarted, given the early release...

(CROSSTALK)

MERSHON: This investigation continues. There are still subjects out there -- mostly known; some only partially identified or unknown. And we remain vigilant.

We will still continue to pursue this investigation, ultimately seek U.S. prosecution. But we don't have that at this point.

(CROSSTALK)

QUESTION: How many others are in custody? MERSHON: We have I believe two others that are in custody directly related to this. Again, in the foreign environment, not criminally charged at this point.

QUESTION: (OFF-MIKE) more money for a while. How does this affect the whole process?

BLOOMBERG: Well, we've said continuously that when you catch a terrorist and look at the map in his or her pocket, it is always a map of New York; it's not a map of some other place.

New York City, Washington, D.C., a handful of other large cities in the country remain the targets for terrorists because they symbolize America and they symbolize what America stands for to people overseas. And this is just another example, in a long line of them, as to why we have to continue to keep our vigilance up and why with homeland security funding we can do that.

Without that, this city is going to continue to do what it has to do, but the sacrifices on the part of the public are something they shouldn't bear. The American government should give out homeland security monies based on risk.

Having said that, whether we got the security monies or not, this has nothing to do with this plot.

And let me add to what Mark said: The investigation continues, but there is not one shred of evidence that it has proceeded beyond the planning stage; and that that has been broken up, even though not everybody may be in custody yet; and that the people of New York City should feel comfortable of going about their business and enjoying the freedoms that we have in this country.

We all believe that we are as safe today as we were yesterday, and we will be as safe, if not safer, tomorrow.

We'll do everything we can to make sure of that.

QUESTION: Sam, I wonder if you might be able to tell us what are the range of effects of a truck bomb on any of these tunnels -- the Holland Tunnel, any of these tubes that we might be looking at. How serious could a bomb damage? We've heard everything from -- I think there's some outrageous speculation that's been going on around this.

PLUMERI: I think that any explosion any place, in any tunnel, regardless of its size, would cause an issue, obviously, and a disruption.

To get into details as to what that means in terms of size of explosives, et cetera, I'm not prepared to do that here today.

QUESTION: Superintendent, you do have a new program starting next week to scan passengers at the Exchange Place Station. Does the timing of that have anything to do with this?

PLUMERI: It does not. This is the phase two with the Department of Homeland Security -- this is the second phase of that particular initiative. We're looking forward to it. We think it's an appropriate measure. It's a great partnership with the Homeland Security Department. We've been embraced by them, since 9/11, for many types of technologies that we have deployed at our facilities.

QUESTION: Superintendent, I think what was being asked was, is it realistic to think that it's so easy to just blow up a tunnel? I mean, for the New Yorkers and people in New Jersey, should they be -- we don't want to overly alarm people into thinking, "Oh, terrorists can go blow up a tunnel." I mean, it's not an easy thing to do -- correct? -- in terms of explosive power.

PLUMERI: I will tell you that this partnership that you see here today is evidence as to how hard we work and how important that spirit of cooperation is, and what it means in terms of thwarting those individuals that would do harm to any of our facilities.

So to sit here and tell you that that is a realistic expectation I don't think is accurate.

We work very hard. Our assets are deployed every day to ensure that that doesn't happen.

I think if you go to any of our facilities -- we have been doing, as the commissioner said earlier, similarly in terms of inspections, throughout our facilities. We do random checks with vehicles that go through our facilities -- all of our facilities.

(CROSSTALK)

QUESTION: ... talk about how they wanted to target these trains or these tunnels (OFF-MIKE) What should the public be looking for? More specifically, what were the terrorists talking about using: backpack bombs in this case? What was it?

PLUMERI: We ask the public -- and we find that the same people use our facilities almost on a daily basis -- to report anything that's unusual. That is a huge help to us. And the public has done that.

We've seen -- and I'm sure I think the commissioner would absolutely concur -- that people have been very, very, very good in not being inconvenienced or feeling inconvenienced, helpful, wanting to cooperate. And we have, on a number of occasions, had people come to us and point out unusual individuals.

QUESTION: What was the instance in this case? Was it backpacks? What was the means or (OFF-MIKE)

PLUMERI: Various issues. Not just backpacks, but just unusual behavior, et cetera.

QUESTION: Mr. Mershon, when you say that this had reached a certain level of maturity and you were able to stop them before they went to the next step, but that most of the principals are not in this country, is it your belief, do you have reason to believe that they might have contacted associates who are in this country?

MERSHON: Well, I can tell you what we know in this case, and that is that the principal players are not in this country. They are largely identified, some only partially identified, and have not been in this country to our awareness.

QUESTION: Right, but what I'm asking you is, would the principals have needed people in this country (inaudible) so they can go on to the next step?

MERSHON: I think it's safe to leave it at we have identified those eight and we think it is -- in terms of this particular plot, it is contained within those individuals.

QUESTION: Had they traveled to other countries recently, any of the eight that you've identified? And have you made a request for extradition for the person which you believe you do have in custody?

MERSHON: We don't have charges pending in the U.S. so there certainly will be no extradition.

And yes, we do have international travel, but I will not discuss the detail of that.

QUESTION: Mr. Mershon, you had indicated that the plot was going to reach fruition in October or November of this coming year. I was just wondering if you could elaborate a bit as to when the incipient (ph) investigation began, when you first, sort of, got an inkling that this thing was afoot, so to speak.

MERSHON: It's almost exactly a year ago that we launched this investigation.

QUESTION: Just to clarify, eight principals, one facing criminal charges, and then two others in custody in other countries?

MERSHON: I believe it's two others that are directly related to this plot, yes.

QUESTION: So three total that you've identified who are in custody in some fashion, out of the eight?

MERSHON: In some fashion. Yes.

QUESTION: Or in addition to the eight?

MERSHON: Out of the eight.

QUESTION: Mr. Mershon, can you characterize the person that is in custody in Lebanon now? Was he a mastermind?

MERSHON: Yes, Hammoud is a 31-year-old Lebanese national. And he is basically self-described as the mastermind of this plot.

That's part of our comfort level in indicating that we think this is largely disrupted.

QUESTION: (OFF-MIKE) the nationalities of any of the other suspects?

MERSHON: Not disclosing that. We don't have charges, as they say.

QUESTION: Did this plot involved (OFF-MIKE) tunnel target? (OFF- MIKE) Staten Island ferry, other river crossings?

MERSHON: There's additional information which we are not sharing at this time. Any authorities that need to know certainly have been informed.

QUESTION: Can you address the issue of homeland security money? Yesterday, we learned that the New York metro area will be getting additional transportation dollars.

Do you think that that's adequate, what we're getting now?

BLOOMBERG: Well, we start out every day saying, "What do we need?" and we go ahead and acquire that, whether it's training or personnel or equipment. Then, later in the day, we look to find ways to pay for it.

It would be very helpful if Homeland Security would give us a greater percentage of the funds, a percentage that more accurately reflects the risks that New York City runs versus other cities.

But the amount of money that we get from Homeland Security does not directly impact the quality or the magnitude of our efforts to keep this city safe, nor will it.

The monies that we are, I assume, going to get out of the transportation part of homeland security funds are helpful. All dollars are helpful. They're fungible, basically, and we will certainly spend them wisely.

But I think that if you go back and look, the president and Michael Chertoff had said at one point they thought that all homeland security funds should be distributed based on risk. I think, unfortunately, that process has been compromised. And by just defining 45 cities instead of four or five cities as places where risk exists, it has degenerated back into the kind of distribution of funds that is something for everyone.

The truth of the matter is that the risks are concentrated in New York, Washington, a handful of other cities. And even though there are potential targets every place, homeland security funds shouldn't be going to where there are targets -- where there are risks, it's to where there are targets.

QUESTION: Could Mark clarify for just a second -- this still hasn't been clarified here -- are we talking about a plot to damage one of the tunnels -- the PATH Tunnel, the Holland Tunnel, whatever it is -- or is there's been some indication this may have been a target -- maybe one of the trains (INAUDIBLE) passengers? Which one of the two is it, the flood or to hurt passengers, or what?

MERSHON: This is a plot that would have involved martyrdom, explosives and certain of the tubes that connect New Jersey with Lower Manhattan. We're not discussing the modality beyond that.

QUESTION: Can you tell us -- the first nugget of information about a year ago that led to the beginning of this investigation, did it come from Lebanese intel or was it from FBI intel, or neither, a third party?

MERSHON: I will tell you generically it was FBI intelligence- gathering that led to this investigation. But as I said earlier, we are not discussing the specific predication of this matter.

QUESTION: One more question, please.

MERSHON: One more question.

QUESTION: The gentlemen in custody in Lebanon, is there -- you mentioned that there was no indication that (inaudible) material and support was transmitted. But did Al Qaeda give technical support? Is there information that they provided technical or advice to this group?

MERSHON: Again, without criminal charges here, we're not discussing the evidence that we do have in this case. I hope you'll understand and respect that.

And with that we'll close. But I want to tell you this is truly an outstanding partnership you see up here working...

QUESTION: Can you spell the suspect's name in Lebanon so we can get (INAUDIBLE) correctly?

MERSHON: One more question there, eh?

(LAUGHTER)

QUESTION: Just want it to be correct.

MERSHON: First name -- we only have the two names here, not the traditional three- or four-part name -- A-S-S-E-M H-A-M-M-O-U-D; 31- year-old Lebanese.

And, again, thank you, everybody, for your interest today.

WHITFIELD: The FBI assistant director in charge there, Mark Mershon, giving the name of who they believe is the mastermind, the man in custody in Lebanon after investigators, both New York and federal, have foiled a plot that was targeting all the conveyances into the city across the river.

Those words being described by Mark Mershon on this first anniversary of the London terror bombings. New York is now thrust into the center of discussing this foiled plot. Earlier we were talking with FBI assistant -- or former FBI assistant to the director and security analyst now Pat D'Amuro. He's back with us now to help us kind of decipher and navigate so much information that came out of the press conference involving New York City authorities, Port Authority, New York commissioner as well as FBI agents. What, I guess, were the highlights that you heard here?

PAT D'AMURO, CNN SECURITY ANALYST: Well, Fredricka, there were two very key points made in this press conference. One is that there are two other individuals that are in custody. That still means that there may be as many as five individuals transiting somewhere globally that were involved in this plan to attack now what we learn are the path trains to New York.

The second thing is -- and this is very key -- that there was a reason to take this down now and make the arrest overseas, because it appears, if you read into this, that these individuals may have been going operational. Once a terrorist organization goes operational, if they were trained in al Qaeda camps, that means they would start cutting off contact with the rest of the world.

They may have gone into a mode of trying to collect explosive material, trying to get the operation ready to go, trying to come into the United States. So I think that was a significant point made that maybe this was the reason that they decided to make this arrest overseas now.

WHITFIELD: Well, Pat, at the same time when we heard from Mr. Mershon, he talked about A, admonishing the person who may have leaked the information, what he described as very unprofessional information, because clearly that person doesn't understand the agility of this investigation and how this may have potentially hampered trying to get other suspects.

And Mershon also described that it was his belief, and authorities believe, that this phase of planning was going into a more active phase of planning. And so that kind of exemplifies how this may have helped thwart investigators to learn of the other participants in this plan?

D'AMURO: Well, it sounds as if the reason to make the arrest when they did was because this group may have been going into a more active phase. We know how al Qaeda trains in those particular respects, and what they do when they go in an active phase is to go underground and remove themselves from detection of law enforcement and intelligence services.

The other aspect of this is, is that it severely hampers your international relationships with other law enforcement and intelligence services.

WHITFIELD: How is that?

D'AMURO: Well, because the Internal Security Force in Lebanon was still looking to collect intelligence and evidence with respect to these individuals. Now that it's been disclosed to the media, these individuals, again, will probably go underground and the ones that are not in custody are going to be that much more difficult to locate and to question with respect to this particular threat.

WHITFIELD: Mershon mentioned that they may have been going into the phase of actually surveilling some of these targets. So when in the phase of surveilling some of these targets, perhaps some other players may have emerged whereas now they wouldn't?

D'AMURO: It's possible, but when they go underground they usually try to run as silent as possible. That's one of the reasons why they may have decided to take this down at this particular time.

WHITFIELD: All right. Pat D'Amuro, thank you so much for your insight.

Coming up in the next hour of LIVE FROM, where do terrorists get their information? The training ground is no longer a place on a map, but instead online these days. A look at the jihad being waged on the Web.

And much more on this developing story out of New York, a plot against New York and New Jersey's transit systems foiled when LIVE FROM continues.

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