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Firefight Between Israel, Hezbollah Continues; Bush Attends Summit of World Leaders; California Wildfires Could Merge, Firefighters Fear

Aired July 14, 2006 - 13:00   ET

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

KYRA PHILLIPS, HOST: Hello, everyone. I'm Kyra Phillips at the CNN world headquarters in Atlanta.
Crisis in the Middle East. As a matter of fact, breaking news right now. Beirut's airport bombed again, missiles fired at Israel from Lebanon. Were those missiles made in Iran?

On the verge of a merge. Two major wildfires on a collision course in California. A state of emergency declared. It's hot, windy and 3,000 firefighters are battling the flames.

LIVE FROM starts right now.

ANNOUNCER: This is CNN breaking news.

PHILLIPS: Beirut is beneath black smoke today, looking every bit the city under siege. More Israeli air strikes have targeted the Beirut airport and the Hezbollah-dominated neighborhoods. And we've just gotten word of a significant air strike south of the capital.

CNN's Alessio Vinci is there and joins me live.

Alessio, another Hezbollah main target?

ALESSIO VINCI, CNN CORRESPONDENT: That is correct, Kyra. We understand this time, however, that it wasn't an air strike but rather gunboats positioned on the offshore of Beirut. Of course, those gunboats enforcing a naval blockade over the last two days around -- around Lebanon.

And we understand that several targets in the southern district of Beirut have been hit, including, we understand, the headquarters of the Hezbollah militia group, including the headquarters of Hassan Nasrallah, the leader of that organization.

Now, it isn't clear whether he was actually inside the building at the time of the attack, but we heard two very loud explosions. And we have not received any report yet of casualties, but we understand that that area has come, again, under attack.

Meanwhile, we're also getting reports that the main road linking Beirut to Damascus, Beirut to Lebanon through Syria, has again come under attack. That was a major route used by people who, after the airport was shut down, international airport was shut down yesterday, was used to leave the country. They couldn't leave by boat because there was a naval blockade. Well, that road, we understand, has again come under attack within the last hour or so.

We understand that a lot of people trying to leave the country, of course, especially non-nationals, and the Syrian border is the only way out, or was the only way out. We understand that major traffic reports cannot drive through that road anymore, but perhaps cars can take side roads and bypass the damaged area.

While this, of course, comes, you mentioned, in the hours after the international airport was hit again several times. It was already hit three times yesterday. The entire airport was shut down.

This morning, the Lebanese government, with the interrogation (ph) of the U.S. government, managed to reopen that airport, one runway of that airport, for a few hours, allowing three jetliners of the Middle Eastern airline, which is the national carrier here. They allowed five of those planes, allowed to be -- to take off and be positioned somewhere else.

We don't understand, really, why -- we don't know, really, why the Israelis have allowed the airport to be reopened for those flights to take off, but what we do know, however, is that shortly after those planes took off, Israeli strikes crippled one more time the only runway that had been repaired to allow those plans to leave, Kyra.

So while, obviously New York and U.N., the diplomacy is hard at work, we're not really seeing any fruits of that negotiation going on here on the ground in Beirut.

PHILLIPS: And just to reiterate, Alessio, as we're bringing our viewers up to date with the breaking news, news that you just got about Hezbollah headquarters there in Beirut, targeted by IDF forces. You believe that the leader of Hezbollah was inside that building.

Do your sources also tell you that this is where all the strikes against Israel were being coordinated and called out from? Was this sort of the main control center, I guess, for the action that we've been seeing within the past couple of days?

VINCI: Well, I have not been able to confirm that Nasrallah was actually inside the building when it was hit a few moments ago. And it is not clear to me now from where those strikes against Israel are being coordinated.

Certainly, this is the Hezbollah head quarters. There is certainly some kind of decision making taking place. But obviously, in terms of striking at Northern Israel, of course, those attacks will probably have to be coordinated further done south in the area of Lebanon, closer to the border, an area, by the way, which is not under the control of the Lebanese government but under the control of Hezbollah, which has only two ministers within that government, Kyra.

PHILLIPS: Alessio, is the IDF, Israeli Defense Force, working at all closely with the Lebanese army?

VINCI: Well, we don't have any indication of that. As a matter of fact, I have no indication that the Lebanese army is at all involved in this conflict. The Lebanese prime minister has made it very clear that he does not want the Lebanese army being part of this, at least at the moment, for the time being, because they're disavowing themselves from this -- from the capture of these two Israeli soldiers on the part of Hezbollah.

At the same time, of course, they're saying that Lebanon has the right to defend itself. But there is not much the Lebanese army can do at this time. We've seen yesterday, for example, last night when the southern part of Beirut came under fire. We're seeing some anti- aircraft fire going up in the sky.

But I can't tell whether these were batteries belonging the Lebanese army or belonging to Hezbollah. It is -- must be, again, very clear to our viewers that there are patches of this country controlled by Hezbollah, where the Lebanese army cannot go, where the government forces cannot go.

PHILLIPS: Alessio Vinci, we'll keep checking in with you live out of Beirut. Thank you so much.

Missiles, air strikes, casualties, here's what we know right now. Israelis living in the Haifa area are staying close to bomb shelters or hunkering down in their homes. Rockets -- rockets, rather, fired from Lebanon rained down onto Northern Israeli through the night and through the day.

Israeli forces allowed several planes to take off from Beirut's international airport before the bombing -- or before bombing of those runways, again. Nothing's flying there now. And as you just heard, there are also reports now of Israeli forces having blasted the Hezbollah headquarters there in Beirut.

Now the Lebanese government says more than 60 people, mostly civilians, have been killed in these attacks, nearly triple that number hurt. Israelis are reporting two dead civilians.

Now to Tony Harris with more on our coverage.

Tony, what are you working for us?

TONY HARRIS, CNN ANCHOR: OK, Kyra, we talk a lot about our global resources here at CNN that uniquely position us to tell these stories that break all around the world as they unfold literally before our eyes. Let me explain what that means with regard to covering this story today.

Our international desk of journalists -- you see them right here -- researchers, regional experts and analysts, are monitoring nine different Middle East channels right now, including state-run Iranian television. And, just a moment ago, when you were talking to Alessio, you were watching pictures from Hezbollah television. Hezbollah television, you should know, and Kyra, you know this, is banned here in the United States.

So our experts, our teams on the international desk, are monitoring nine different Middle East channels right now. We mention this to demonstrate to you that, as developments unfold right now before our eyes in real time, we will not only bring you the new video, the very latest video, but we will be able to share with you how this story is being reported in the Arab world.

That's my task today, to work with the international desk to bring you the very latest pictures and some contacts and analysis on this story as it unfolds, Kyra.

PHILLIPS: All right. And Tony, you just mentioned our folks there at the international desk monitoring Hezbollah TV. We're now getting word that Hezbollah TV is reporting that it's leader is OK, the leader that was inside the building, the headquarters, Hezbollah headquarters right there in Beirut. You're seeing a picture of him right now.

HARRIS: Hassan Nasrallah, yes.

PHILLIPS: You've got it, Hassan Nasrallah. We're being told -- of course, this is through Hezbollah TV, a network that is not aired in the United States.

HARRIS: That's right.

PHILLIPS: It's banned from the United States. But as you and I have been talking about, as well as Alessio Vinci, we're getting word that he was inside the headquarters when it was targeted there in Beirut. Now Hezbollah TV reporting he is OK. Are you getting the same word I am?

HARRIS: I'm getting the exact same word that the pipeline is working, Kyra.

PHILLIPS: All right.

HARRIS: Absolutely.

PHILLIPS: Terrific. Tony, we'll keep checking in with you.

HARRIS: Absolutely.

PHILLIPS: Thanks so much.

HARRIS: OK.

PHILLIPS: Well, the U.S. and Israel both blame Syria, among others, for the Middle East breakdown. CNN's Aneesh Raman is in Damascus. He joins us now by phone -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Kyra, good afternoon.

Amid these already high tensions, Syria really is the gateway through which the things the situation could rise dramatically and intensely and instantly.

Frank assessments have been made that Syria has had a hand in Hezbollah's abduction of the Israeli soldiers, by the Israel government. Syrian officials have been publicly downplaying their relationship with Hezbollah. The country's ambassador to London has said that Syria is trying to restrain Hezbollah in its rocket attacks and that it does not want to be drawn into this conflict.

The Syrian ambassador to the U.N. has told CNN that Hezbollah and Hamas are independent groups. They do not need Syria, is the exact quote.

Now the key to all this is if Israel acts on intelligence it has that Syria was directly involved in Wednesday's abduction and does take action here, the entire situation could escalate.

Iran's president, according to the Iranian news agency, has voiced his support to his Syrian counterpart, Assad, and said that if Syria is attacked, it will be seen as an attack on the Islamic world.

So Syria within the country, right now, I can tell you, having come in, we got visas in an exceptionally quick amount of time, given how long it usually takes. Syria is eager, it seems, to get its point out there, to change the debate away from the abduction of the Israeli soldiers towards a broader Palestinian struggle.

And in the streets, there have been, I have been told today, some supporters, convoys of Hezbollah supporters that have come through. But it is a city, and its residents are aware of the situation and are fearful of where things might head.

Syria, as well, has seen a huge influx of tourists, specifically from neighboring countries who were in Lebanon. And as those borders are now shut and the ways to get into Syria are closed, it is a country that itself is feeling this pressure -- Kyra.

PHILLIPS: And Aneesh, you know, talking about the Syrian factor, we had a chance, actually, to interview the ambassador yesterday. And I asked him that question. I asked him about the State Department's reports, Aneesh, about Syria protecting and harboring a number of these extremist groups, these fundamentalist groups.

And he came back to me with, "Well, how do you define terrorism?" I asked him the same question. I didn't really get a straight answer from him.

Syria, as the State Department has been saying in these various reports, this has been a country that has harbored these terrorist organizations.

RAMAN: It has. The exiled leader of Hamas is here. Syria has had long ties to Hezbollah. In terms of specifics, it's hard to get anyone here, of course, to say anything beyond the fact that they support what they call a movement for national resistance against occupation.

And so the Syrian officials are eager -- this pressure just mounts as the day goes by, from Israeli, from the U.S., from the world community -- to sever ties with Hezbollah. Syrians are eager to change that debate. They make it seem that they are simply supporting a movement, that they have no direct links to Hezbollah.

Now, that might fall on deaf ears outside of the borders in Syria. But that is what they are trying to do. They are, clearly within this city, and the people I've spoken to in the brief amount of time I've been here, afraid of what might come next as this situation escalates just in the past hour, whether or not it will now come to Syria and then what happens then. Does it become a broader conflict?

Iran and Syria are forming a very visible bond amid these tensions. Iran's president is eager to be seen as the voice of the Islamic world. He has voiced support for Syria and its government here. And so that is the question the people here are grappling with. What happens if this situation now comes to Syria?

PHILLIPS: And we'll be talking about that much about Iran and Syria, that connection to what's taking place, later in the hour. Aneesh Raman reporting for us. Thanks so much.

Well, the Israeli resort town of Nahariya should be buzzing with beach-goers today. Instead, it's quiet, the people there afraid and still rattled from a barrage of Hezbollah missiles. CNN's John Vause is there.

John, bring us up to date.

JOHN VAUSE, CNN CORRESPONDENT: Well, Kyra, we know have word from the Israeli military. During that last attack of Hezbollah, Katyusha rockets, which were fired on towns in the northern part of Israel. There are now two confirmed casualties, fatalities, according to the Israeli military.

One of those Katyusha rockets hit a house. Inside, a mother and her 4-year-old son were killed. There are also reports elsewhere a mother and two children have been wounded in that last round of Katyusha rockets, which were fired into Israel by Hezbollah militants from Lebanon.

It is now the second time that Nahariya has come under attack, as well. We were here when that Katyusha, two Katyusha rockets landed in this city. The Katyusha rockets landed earlier today, as well, wounding about 30 people here. There were other attacks in the town of Safed. There, about a dozen people were wounded in that attack.

All of this has -- Israeli now says that the two Hezbollah rockets, which hit Haifa Thursday evening, were now apparently made in Iran. They described the Katyusha rockets as not the typical rockets fired by Hezbollah. They have a longer range.

And now hearing competing claims coming from Hezbollah which says they now have a much stronger, more powerful missile, a Raad-1, they call it, a Thunder-1, which has a much longer range, possibly, according to analysts. And could possibly carry a much bigger payload.

So it appears that the escalation continues in this conflict between Israeli and Hezbollah -- Kyra. PHILLIPS: John Vause, thanks so much.

Let's turn now to the line dividing Gaza and Egypt, the site today of explosions, masked gunman and a security breach.

CNN's Ben Wedeman is on the phone from Gaza.

And Ben, this is where it all began weeks ago. And that was with Hamas and the capture of an Israeli soldier. And now we're seeing two battles going on, one in Gaza and one in Israel and Lebanon.

BEN WEDEMAN, CNN CORRESPONDENT: That's correct. I'm at the southern end of the Gaza Strip, in Rafa. It's not far from here, which in the early hours of the 25th of June, a 19-year-old Israeli Army corporal, Gilad Shalit, was nabbed by Islamic militants.

Now the drama today in this area is that Hamas militants armed with rocket-propelled grenades, locally made, threw open the gate separating Egypt from the Gaza Strip. What they were doing was trying to allow the thousands of people who have been caught on the other side of the border since the 25th of June, when Gilad Shalit was nabbed. That they've been stuck on the other side because Israeli has closed it.

So we've been here watching hundreds of people, possibly even thousands, crossing the border. Now there's a bit of hysteria, just a little bit ago (ph) here, because there are several Israeli attacks, helicopters hovering overhead. The fear is, of course, that those helicopters are going to strike the border point that was blown open today by Hamas -- Daryn (sic).

PHILLIPS: All right. Ben Wedeman, thanks so much. We'll continue to stay in touch with you from Gaza.

Let's get back to Tony Harris in the news room, continuing to work developments from our international desk.

Tony, what's going on?

HARRIS: And Kyra, just want to bring you the very latest on the Israeli strike just moments ago on the headquarters of Hezbollah in Lebanon. A direct strike, the first of its kind since 1996, and Israel clearly targeting the head of Hezbollah, Hassan Nasrallah. And our reporting at this time is that he is safe and that his family is safe.

We will continue to work that angle of the story. And the headquarters, just to put you into the city and into the location itself, the headquarters of Hezbollah is actually on one floor of the building that was targeted today.

So again, our reporting right now is that the head of Hezbollah has survived this direct strike on Hezbollah headquarters in Lebanon. We'll continue to follow the story and bring you the very latest, Kyra.

PHILLIPS: All right. Tony Harris, thank you so much.

HARRIS: Sure.

PHILLIPS: It's another day of long distance diplomacy for President Bush, who's now in St. Petersburg, Russia, for this weekend's G-8 summit. Today's schedule includes a dinner with Russian President Vladimir Putin and a meeting with so-called civil society activists.

CNN's White House correspondent, Ed Henry, is there -- Ed.

ED HENRY, CNN CORRESPONDENT: Kyra, Secretary of State Condoleezza Rice says that the traveling White House is following the Mideast developments minute by minute. But President Bush, as you noted, going ahead with his regular schedule in advance of this weekend's G-8 summit here in St. Petersburg.

The president and first lady arriving today and being greeted by President Putin, as well as his wife, for that dinner that you mentioned. Before the dinner, Mr. Bush even sharing some light moments, joking about the old Russian car (ph) dating back to 1972, Mr. Putin has on his property. Mr. Bush joking with reporters they ought to go get some Russian vodka and relax.

But as you noted, also some very serious business going on here, on his way to St. Petersburg aboard Air Force One. The president calling the Egyptian president, calling the Jordanian king, also calling the Lebanese prime minister, all stressing several key points, including the fact that the U.S. believes Syria needs to be held to account here.

Take a listen to what Secretary Rice said to reporters last night.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: Syria and Iran have been very much in the opposite direction, encouraging and, indeed, in the case of Syria, sheltering the people who are perpetrating these acts.

We have to remember that both the external leadership of Hamas and a number of the Hezbollah activities are carried out from the territory of Syria. And Syria needs to act responsibly and stop the use of its territory for these kinds of the activities and needs to bring all pressure on those that it is harboring to stop this and to return the soldiers and to allow the situation to de-escalate.

(END VIDEO CLIP)

HENRY: Now, White House spokesman Tony Snow here in St. Petersburg is denying a claim by the Lebanese prime minister, Mr. Siniora, that during his phone conversation with Mr. Bush, the U.S. president promised to press Israel to stop the attacks.

Instead, the White House insists they're at where they were yesterday, which is that they believe Israel has a right to defend herself, but also they're urging Israel to exercise restraint. There's great concern within the U.S. government that if Israel overreacts, that it could basically topple the fledgling democracy in Lebanon and further complicate an already difficult situation -- Kyra.

PHILLIPS: Our White House correspondent, Ed Henry, traveling with the president.

Straight ahead a deadly convergence in California as two fierce wildfires threaten to join forces. A live report, with the latest confirmation and information. CNN, you're watching the most trusted name in news.

(COMMERCIAL BREAK)

PHILLIPS: One is a lumbering behemoth, the other is a smaller, faster and hotter one, but now California's Sawtooth and Millard Complex wildfires are on the verge of merging.

It's feared the Sawtooth fire alone could destroy 100,000 acres. That's roughly five times the size of Manhattan.

Our Keith Oppenheim is in Morongo Valley, or what's left of it, with an update on this perfect fire storm -- Keith.

KEITH OPPENHEIM, CNN CORRESPONDENT: Hi, Kyra. I'm in Morongo Valley near some homes that are on the edge of the Sawtooth Fire. A lot of residents around here kind of worried because backfires have been set here, and the fire right now is pretty close to where they live. So they've been evacuated.

And those two fires that you're talking about, last we heard, they're close to each other, about a half mile apart. But the greatest concern is that these fires together could move in a northerly direction and destroy more homes.

(BEGIN VIDEOTAPE)

OPPENHEIM (voice-over): The Sawtooth Complex fire is spreading. Along with fears it could merge with the Millard Complex fire, burning in the San Bernardino National Forest. Fire officials say if that happens, the combined blaze could consume as much as 100,000 acres.

RICK GRIGGS, SAWTOOTH FIRE SPOKESMAN: We're watching both fires very closely and keeping an eye on their proximity to each other.

OPPENHEIM: In San Bernardino County, about 100 miles east of Los Angeles, Governor Schwarzenegger declared a state of emergency. Mandatory evacuations are ordered in half a dozen communities. Thousands of homes are in danger.

GRIGGS: We do understand that it's an inconvenience to be out of your home, but it is for your own safety. And we'll do our best to get you back into your homes as soon as we can.

OPPENHEIM: Already dozens of structures have been destroyed. In Morongo Valley, Pat Miller had thanks for firefighters who protected her property and neighbors who were life savers.

PAT MILLER, EVACUEE: There was fire on both sides of our dirt road. I was at work. Our neighbors got my husband out, because I couldn't get in.

UNIDENTIFIED FEMALE: They wouldn't let her in.

MILLER: It was like driving into hell.

OPPENHEIM: The Sawtooth Fire is about 20 percent contained, but it's moving north. The concern is it could hit the resort area of Big Bear. One official warned the fire would turn 100-foot fall trees there into torches.

(END VIDEOTAPE)

OPPENHEIM: Right now, Kyra, there are more than 2,700 firefighters out here. Many of them are trying to work the northern edge of this fire and build a containment line to prevent the fire heading towards Big Bear and Big Bear Lake. If they can do that, that would be a significant victory in preventing what just started as a small desert fire from marching its way into the mountains.

Back to you, Kyra.

PHILLIPS: All right, Keith. We'll keep checking in. Thanks so much.

Straight ahead, want proof of the global economy? It's as close as the nearest gas pump, where the price escalates with the violence in the Middle East. More on that straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Middle East conflict: missiles, air strikes, casualties. Here's what we know right now.

Israelis living in the Haifa area are staying close to bomb shelters or hunkering down in their homes. Rockets fired from Lebanon rained down onto Northern Israel overnight and through the day.

Israeli forces allowed several planes to take off from Beirut's international airport before bombing the runways again. Nothing's flying there now. And Israel also reportedly destroyed the Hezbollah headquarters and the residence of Hezbollah's leader, but the leader is said to be unhurt.

The Lebanese government says more than 60 people, mostly civilians, have been killed in those attacks, nearly triple that number hurt. Israelis are reporting two dead civilians.

Let's get back to Tony Harris. New developments. He's monitoring all the various networks covering this story across the globe.

HARRIS: Absolutely, Kyra. Nine Middle East channels being monitored by our international desk, which is right behind me. Again, our teams are working feverishly on all the developments as this story unfolds before our eyes today.

Want to bring you the latest. We've learned that a Hezbollah rocket fired from Lebanon has killed a grandmother and a grandson in the northern Israeli city of Meron. Once again, this is news just in. We've confirmed that a Hezbollah rocket has killed a grandmother and a grandson in the northern Israeli city of Meron. And that is the latest -- the latest development in this story at this moment.

We want to take a moment and reset the story of the Israeli gunboat attack on Hezbollah headquarters. Now Hezbollah television is confirming that the headquarters was attacked, and Hezbollah television has been reporting that the leader of Hezbollah, Hassan Nasrallah, is safe.

Now again, let's put this in a little bit of perspective, Kyra. Hezbollah television is banned in the United States. So it is confirming the obvious, that the headquarters was attacked.

Now, Hezbollah television is also reporting that the leader of Hezbollah, Hassan Nasrallah, is safe. Again, this is the mouthpiece for Hezbollah.

We are going to work on that part of the story, that aspect of the story, independently and gather more information on the safety, at least as its being reported by Hezbollah television, of Hezbollah's leader, Hassan Nasrallah. We'll get back to you on that, Kyra.

PHILLIPS: All right, Tony. Let me know when you have something new.

HARRIS: Absolutely.

PHILLIPS: Appreciate it.

HARRIS: Sure thing.

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