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Shiite Solidarity; Pentagon Mulls Possible U.S. Peacekeeping Role; U.S. Sanctions Companies for Iran Sales

Aired August 04, 2006 - 13:33   ET

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

KYRA PHILLIPS, CNN ANCHOR: Let's go straight to the newsroom, Fredricka Whitfield, details on a developing story.
Hey, Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello to you, Kyra.

Well, CNN has confirmed that the U.S. has imposed sanctions against seven companies involved in certain nations, such as North Korea, Russia, India and China, all for their dealings with the selling of arms to Iran. It's not clear yet exactly what kinds of arms we're talking about, over what time period, and we're still trying to work out details, Kyra, on the specifications of these sanctions.

PHILLIPS: OK, Fred, thanks.

(NEWSBREAK)

PHILLIPS: A show of support for Hassan Nasrallah and the Hezbollah militia in Lebanon, except this tape wasn't shot in Beirut. It's Baghdad, where tens of thousands of marchers took to the street. Iraq, of course, has been the scene of a growing sectarian rift between Shiites and Sunnis, a rift that, some say, has disintegrated into de facto civil war.

CNN's Harris Whitbeck is in Baghdad.

What do you make of these protests, Harris? And you see something like this, you already think there's a serious situation going on in Iraq, and this is just doubling up on the efforts.

HARRIS WHITBECK, CNN CORRESPONDENT: That's right, Kyra.

The people who were out on the streets of Sadr City today were quite passionate about expressing their support for Hezbollah. They were also passionate about expressing their willingness to die for that cause.

(BEGIN VIDEOTAPE)

HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): Chanting that Hezbollah leader Nasrallah is waging his war against Israel in the name of religion, Shia protesters from all over Iraq converged on Sadr City, the bastion of Shia fundamentalism in the Iraqi capital. They arrived in buses and private cars, and they numbered in the tens of thousands, accompanied by armed militiamen waving the yellow flag of Hezbollah.

As Israeli and American flags were burned and effigies of George Bush and Tony Blair were waved in the air, an imam prayed for Hezbollah fighters. "The victory will be for the Islamic resistance in Lebanon. Imam Ali, peace be upon him, will support him like he did before with the Mahdi Army in Najaf. That was a reference to the bloody fight between Shia militias and U.S. forces two years ago that led to the rise in prominence for radical Shia clergy Muqtada al-Sadr. It was also a call to arms for Hezbollah supporters elsewhere in Iraq.

This protester, shrouded in white, signifying his willingness to die for his cause, said he was ready.

UNIDENTIFIED MALE (through translator): I will fight with Hezbollah and Hassan Nasrallah, and we will support him until we free Palestine, Lebanon and Iraq, God willing.

WHITBECK: Others demanded that Hezbollah strike Tel Aviv next.

(END VIDEOTAPE)

WHITBECK: The protest was describe as the largest ever in support of Hezbollah in the Middle East and Shias in Iraq were bent on showing were bent on showing their strength in this country, Kyra, a show of strength that, they say, they are willing to use to support Hezbollah over in Lebanon -- Kyra.

PHILLIPS: Harris Whitbeck in Baghdad. Thanks, Harris.

Diplomats are still trying to work out some kind of peace plan for the Middle East. When the fighting does stop, U.S. forces may have a role in efforts to keep that peace.

CNN Pentagon correspondent Barbara Starr joins us to report on what she's learned -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, very modest indeed, but maybe perhaps a first step. The Pentagon has notified Congress it wants to give Lebanon, the Lebanese military, $10 million in spare parts for its trucks, for its helicopters, as well as protective gear and ammunition. This notification to Congress is awaiting sort of the final congressional approval, if you will, but what the Pentagon has already said, is it will buy the equipment and hold it for Lebanon until an actual peace agreement, if you will, is reached, that nothing would be done until the current hostilities end.

But the whole idea by the U.S. military is to try and boost the Lebanese army, give them more capability so that they can begin to extend their reach into Southern Lebanon and take control back from Hezbollah.

What the Pentagon has told Congress is that this shipment would depend on several conditions, including a commitment from the Lebanese government that its own military would be used to keep Hezbollah in check, that there would be a verified vetting process so that the Lebanese army does not include members of Hezbollah, and a verified cease-fire with Hezbollah pulling back beyond the Litani River, of course, in Lebanon, to provide that buffer zone.

All of this, again, is still awaiting a cease-fire, an agreement. Nothing will happen until that happens.

But if this all works out, indeed, U.S. military officials are already looking down the road as to whether they could help train Lebanese army units to improve their own capabilities and handle their own affairs -- Kyra.

PHILLIPS: Barbara, I think, because a lot of people are still asking the question, are we actually going to see boots on the ground for a while on Lebanese territory really working with these men?

STARR: Probably not. Clearly, the U.S. position by the State Department, the White House of course, is no U.S. troops on the ground in any international peacekeeping role. But make no mistake, U.S. troops are ready. There is planning going on for them to help with logistics, and supply and transportation. bringing those key peace keepers from other countries into the region, helping them get ready to go into Lebanon.

What the U.S. military is talking about is once there is some sort of peace agreement what it could do to help the Lebanese army. A lot of that work was already going on behind the scenes before the current hostilities broke out. It's all been shelved, but they're beginning now to dust it off, look at it and say, OK, if there's a cease-fire, if there's some sort of agreement, what can U.S. troops do to help the Lebanese troops? They're in a very delicate state over there. What can they do to help them extend their reach and really see after their own affairs?

PHILLIPS: Barbara Starr at the Pentagon. Thanks.

Well, he's been in power for a few days and yet, no one's seen him. Where is Raul Castro? We go in search of, straight ahead on LIVE FROM.

(COMMERCIAL BREAK)

PHILLIPS: Back to Fredricka Whitfield with that developing story we've been talking about -- Fred.

WHITFIELD: Well, we're trying to get more information on what this means,that the U.S. has imposed sanctions against seven companies working inside North Korea, India, China and Russia, because of arms deals with Iran.

CNN producer Elise Labott is working at State Department. She's on the line with us now.

Elise, what's your understanding of what these sanctions would really mean?

ELISE LABOTT, CNN PRODUCER: Well, Fred, the sanctions took effect on July 28th. They were listed today in the U.S. Federal Register. And they fall under the Iran/Syrian non-proliferation act, which prohibits transfer of sensitive technology to both Tehran and Damascus which could be used for a missile program or a weapons of mass destruction program.

These companies are all sanctioned because officials say there were credible information they had transferred equipment and/or technology to Iran, which was on export control lists, technology that they -- the Iranians shouldn't have been getting. And they had potential of making significant contributions to either crews or ballistic missile systems and weapons of mass destruction.

Now, what the sanctions mean is that no U.S. Department or agency can provide any assistance to these companies, sell any weapons to the companies, munitions, no defense services. And any U.S. licenses that the companies had are going to be suspended. Obviously, no new licenses at this time.

Now, these sanctions applied to the specific entities. There are subcompanies, there are subcontractors, and all subsidiaries. But not to the respective countries or governments, Fred. And this latest move makes a total of 33 companies sanctioned under this legislation.

Obviously this takes place among a lot of concern that Iran is supplying weapons to Hezbollah and at a time where the United Nations Security Council is working on action against Iran, in an effort to get them to curb its nuclear program. So, Fred, obviously a lot of concern about these transfers, and that's why those companies were sanctioned.

WHITFIELD: So is there any idea, at least about what, in dollar figures, this amounts to, the kinds of contributions that the U.S. was making to these companies, which will now, from here on out, cease?

LABOTT: At this point, it's a little early to tell. Obviously, we're trying to get that information. But these particular companies, obviously, not necessarily sure what those transfers were. But, obviously, the U.S. doesn't do a lot of business with North Korean companies and Cuban companies. So in that sense, the numbers certainly aren't that significant.

But Russia and Indian companies, obviously the U.S. does a lot of business with, really expanded its cooperation on the security and technology from India. So it could be very significant, but we'll try to run that down.

WHITFIELD: So, Elise, does it mean first U.S. sanctions and then possibly U.N. sanctions later?

LABOTT: Well, this is U.S. legislation. The Iran/Syrian non- proliferation act is solely U.S. legislation. And a lot of other countries don't necessarily have a problem with some of these transfers. But obviously, right now, there's a lot of concern with Iran at the U.N. Security Council.

And any U.N. resolution that is passed against Iran would probably require all member nations, especially if it's under certain articles of the U.N. charter, such as Chapter 7, which we're talking about, means that all 185 member nations of the U.N. would not be able to provide any material assistance to Iran. So right now it's just U.S. legislation, but certainly, if there's action at U.N. over Iran in the coming weeks and months, then this would apply to all member nations.

WHITFIELD: All right. Elise Labott, thanks so much. Reporting to us from the State Department.

Kyra, back to you.

PHILLIPS: Thanks, Fred. Gas lines, food shortages, bombs. Those are the facts of everyday life in Beirut. Coming up, we're going to talk with a Lebanese blogger who's been writing all about it, and living it.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

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PHILLIPS: Well, steamy and muggy -- it sounds like a broken record, I know, for Dallas and much of the southeast. Temperatures expected around 100 again today. The week long heatwave is blamed for at least 27 deaths in 11 states and scattered power outages from Chicago to New York. Thunderstorms rolling through those regions have taken down even more power lines. At least the temperatures are 10 to 15 degrees cooler.

Well, if you ever wanted to say I report for CNN, here's your chance. CNN is launching I-Report. You, the viewer, are the eyes and ears on the ground, and if you capture a great picture of video on your camera or your cell phone, you can send it to us. Just logon to CNN.com or punch I-Report@CNN.com on your cell. Your I-Report is your chance to share with us what you've witnessed.

Now, let's take a look at what I-Reporter Staff Sergeant Miguel Hernandez sent us to from Balad, Iraq. Check this out, where surprisingly, not surprisingly, it's just as balmy, if not warmer than most of the U.S. Check out the temperature gauge. It's 5:00 in the afternoon, today in Iraq. But, Miguel, one question. Why are you smiling?

Look how hot it is. Can you believe that? If you have a picture like Miguel's, well, you can go to CNN.com, send in an I-Report and join the world's most powerful news team.

Let's check in with meteorologist Reynolds Wolf in the new CNN Weather Center. Did you see that, Reynolds, 120?

(WEATHER REPORT)

PHILLIPS: Gas lines, food shortages, bombs -- those are the facts of every day life in Beirut. Coming up, we're going to talk with a Lebanese blogger who's been writing about it and living it.

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