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24 Arrested in Alleged U.K. Terror Plot; Interview With Northern Command Operations Director William Webster; Airlines Step Up Security

Aired August 10, 2006 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: International terror plot busted -- police in Britain moved quickly. Thousands of air passengers did not.
Here's what we know right now. Unhappy travelers in London and the United States, many waiting for hours to get through security, with liquids, lotions, gels under extreme scrutiny. Hundreds of flights in both directions are canceled. Those merely delayed are gradually getting up and out. Almost all flights in and out of Heathrow were halted this morning, when British authorities sent their terror alert to the equivalent of our level red.

They were rounding up people allegedly ready to kill hundreds of passengers over the Atlantic -- 24 people arrested so far. Maybe more raids are still going -- going on right now. Investigators say that the suspects planned to use liquid explosives smuggled into airline cabins.

As you know, we are learning a lot more about the suspected plot and the suspected plotters.

Our Kelli Arena has been working her sources on just how this has been carried out, how they got on to these British-born, of Pakistani descent, individuals living in this neighborhood in London.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Mmm-hmm.

PHILLIPS: New details coming out?

ARENA: Well -- well, the first thing we have to say right up front is, this is an ongoing investigation.

First -- when we first heard from Scotland Yard, it was 21 people taken in custody. It's now up to 24. And we know that they -- they continue to look for individuals who may or may not be connected to this alleged plot.

PHILLIPS: There was an initial memo that went out to airline pilots saying 50 were believed to be...

ARENA: Right...

PHILLIPS: ... involved.

ARENA: ... as many as 50, and -- right.

PHILLIPS: As many as 50. So, we could see a lot more, right?

ARENA: Well, we could, but a lot of -- a lot of people said, wait, don't get so hung up on the numbers, because, as you go into someone's house, as a matter of course, let's say I come in and arrest you. I go through your papers. I go through your cell phone records.

Here -- here's a whole new bunch of people that I need to look at. Some of those numbers lead back to the United States. They have to be checked out -- so far, no evidence of anyone involved in this plot here in the U.S.

But this is the legwork that has to be done. So, at the end of the day, we won't exactly know what that universe of people will be.

PHILLIPS: And what is interesting, you -- you brought up the point of how detailed these raids have to be. As they do a raid, they get phone numbers.

ARENA: Right.

PHILLIPS: They get names.

ARENA: Mmm-hmm.

PHILLIPS: They get paperwork in these.

ARENA: Paperwork, right.

PHILLIPS: And, then, they have to follow up on all of it.

Are some of the numbers leading to individuals in the United States?

ARENA: Some do, but -- but, again, nothing that shows any evidence. It could be, you know, you may be alleged terrorist number one who called your cousin in the United States to wish her a happy birthday.

So...

PHILLIPS: Right.

ARENA: ... it doesn't necessarily mean anything.

Some of those numbers, obviously, lead to Pakistan. As we know, there were arrests in Pakistan that officials, U.S. officials, tell us were very important in this British investigation, gave the Brits enough information, specific information, for them to move in on this alleged plot.

So -- so, still looking into the ties between Pakistan and -- and -- and Britain. And, again, that, of course, raises the -- the question of, was this Al Qaeda-related, again, a question we do not have an answer to, but a lot of people are saying it -- it looks, smells, feels like it. PHILLIPS: All right. Stay with me here for a minute, because I want to get you involved in this next conversation. We are talking about new developments this hour from Heathrow.

We are going to get right to reporter Simon Israel from the British broadcasting network ITN.

Simon, what can you confirm about information that we have been getting from our sources with regard to where these suspects lived and worked?

SIMON ISRAEL, ITV REPORTER: Yes.

I -- I -- I mean, there are now 24 suspects in custody. And we have uncovered information, and confirmed by security sources, that at least one of them was some a -- form of employee at Heathrow, at least had a British Airports Authority pass that we think enabled him access to most areas of the airport.

It may be -- we are also hearing claims that there may be a second person who also worked at Heathrow. But we are sure that at least one of the 24 was a worker of some description at Heathrow. And we are told that he was arrested -- when he was arrested last night, he was seen wearing Heathrow overalls, as he was being handcuffed and taken out into a police car, to be driven off to a police station. That's one.

I mean, there are a number of others we are -- we're led to understand. There's one, we believe, is an Islamic charity worker. There's another who we think is a student.

I -- I am also led to believe that Pakistan intelligence services have played a great role in this, and that there have been a number who have made trips to Pakistan and back here, with the possibility -- and you have to remember that the head of the anti-terrorist squad said today that the surveillance operation, which has been going on since December 2005, followed not just them, their meeting and their movements, but also the money and the spending.

And that appears to be one of the ways they have been tracking them across borders.

PHILLIPS: All right, Simon, just as you're coming across and -- and reporting this, I have got my sources within the U.S. -- U.S. military saying the same thing, that they believe that some of these suspects, indeed, work at Heathrow Airport.

The question is in what capacity. Were they full-time employees? Were they just able to get badges and part-time access? Stay with us for just a second, Simon, because I want to bring in Kelli Arena, as this is coming through.

This is sort of normal operating procedure, right? Because a lot of these folks come from these other parts of the country, and -- and you were saying, they do work at the airport and other types of agencies like this. ARENA: Mmm-hmm.

PHILLIPS: It's an easy...

ARENA: This...

PHILLIPS: ... place to get work.

ARENA: Yes. And this has been an area of concern for law enforcement for some time.

I mean, I am sure, Kyra, you remember, several times each year, Immigration does -- Immigration and Customs Enforcement does raids on the airports. And they round up illegal immigrants who are working there who have not been cleared.

This is -- this continues to be a focus. You can have people that work in food services who have access to that airplane. One law enforcement official that I spoke to today said, look, sometimes, for -- for these explosive devices, all you need is a little mercury and -- and -- and some -- a battery.

Well, maybe, one of those people goes and plants that innocuously on an airplane. Someone else comes in with some liquid. You don't know what you are dealing with, because you don't have all the pieces put together in one place. And you can pull off an attack.

So -- so, those people are -- are key and -- and a big vulnerability.

PHILLIPS: So, Simon, do you have any idea where this employee might have been working, if they were working in cargo, or with luggage, or are your sources giving you any specifics?

ISRAEL: No. We don't know (AUDIO GAP) detail yet.

These are early days in London, in (AUDIO GAP) And they operate (AUDIO GAP) a slightly different way. I mean, a lot more (AUDIO GAP) your (AUDIO GAP) because of the judicial system here, and because, you know (AUDIO GAP) constant (AUDIO GAP) going on between the security services and the police here, and what we call the -- our (AUDIO GAP)

PHILLIPS: All right, that's our Simon Israel. Unfortunately, we are having a -- a hit with the signal there. He's just out in front of Scotland Yard.

But, once again, the new part of this story, this angle, that, possibly, this one suspect in custody did work at Heathrow Airport, possibly another. There -- there could be more. That is now an angle that we're pursuing -- our sources here within the U.S. military confirming the same thing.

We will stay on that angle.

We have got reporters at all the nation's major airports, JFK, New York; LAX, Los Angeles; Hartsfield-Jackson in Atlanta. Let's get back to CNN's Alina Cho, who has been talking to passengers who have just arrived from Heathrow -- Alina.

ALINA CHO, CNN CORRESPONDENT: That's right, Kyra.

Imagine being on one of those flights from London to New York. We are getting a sense of just how passengers were feeling aboard those flights. A British Airways flight has just landed here at JFK. Most of the passengers we spoke to said that smooth sailing and the pilots actually made frequent announcements board that flight, just to be sure that everything -- everyone felt comfortable.

Earlier, we spoke to passengers on an American Airlines flight from Heathrow to JFK. Some of them said they were searched two and three times. One passenger told us, no books were allowed on that flight, and that many of the passengers actually shared magazines. Most said they felt safer, despite the inconvenience. A few were visibly shaken.

Now, for people who are going outbound, out of U.S. airports, taking flights today, a couple of things you need to keep in mind. Make sure you get here two hours before your flight and know that, if you want to carry on a back, you cannot bring any liquids or gels. You must check those items in.

That's the situation at JFK Airport in New York.

I turn now to my colleague Kareen Wynter in Los Angeles, at another business airport, LAX.

KAREEN WYNTER, CNN CORRESPONDENT: Alina, extremely busy here at LAX.

We just heard from the mayor of Los Angeles, as well as representatives from local, state, and federal law enforcement agencies. And one thing they really continue to underscore is that at no time was interest any specific threat to this airport, to this city, to this region, for that matter.

But, in staying that, they also say that they are taking this latest security scare extremely seriously.

Some things they mentioned at that news conference that are new, in terms of security measures implemented here, are, when passengers go through the security checkpoint, it used to be optional, if you wanted to take your shoes off. That's no longer an option. It's mandatory. All passengers passing through must remove their shoes.

Also, even after they pass through various security checkpoints, they could still be subjected to more screening before they board that plane. And, of course, what we have been mentioning all day, were those banned liquids, as well as gels, when they board airplanes.

So, it gives you a flavor of what's going on here, the very long lines behind me, here at LAX.

That's the latest here. We are going to send it to our Sumi Das, standing by right now at Hartsfield Airport in Atlanta -- Sumi.

SUMI DAS, CNN CORRESPONDENT: Thanks very much, Kareen.

Well, travelers departing from Hartsfield-Jackson International Airport, here in Atlanta, are experiencing a bit of a relief. But that was not the case this morning. Ninety-minute waits, that is what folks had to deal with, as they tried to get through security, the wait now, a much more manageable 10 to 20 minutes.

However, airport officials do warn that there could be an afternoon push -- push. So, certainly, travelers should arrive early. Now, airport officials have also been in continuous communication with the Transportation Security Administration.

And, as part of the procedures that they follow, when there's an incident that raises security concerns, they have emergency crews on standby. This is a very busy airport. And there are almost three dozen, almost direct flights from this airport directly to the United Kingdom. Those flights are still departing. There have been no cancellations. However, there are some delays.

That is the situation here at Hartsfield-Jackson Airport in Atlanta -- Kyra, back to you.

PHILLIPS: All right, Sumi Das, Alina Cho, and Kareen Wynter, from all three airports, from New York, to L.A., to Atlanta, we will continue to check in with you. Appreciate it.

We are also covering breaking news. You are the eyes and ears of CNN, as you know. When you capture a great picture or video on your camera or your cell phone, send it to us. Log on to CNN.com or punch I-Report at CNN.com on your cell phone -- more LIVE FROM straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: We continue to follow this international terror plot that has been busted. Police in Britain moved in quickly. But where did all that intel come from? Well, there was help from Pakistan.

A spokeswoman for Pakistan's foreign minister is going to join us on the phone, as soon as we get connected with her, Tasneem Aslam, the Pakistan Foreign Ministry spokeswoman, joining us from Islamabad.

As soon as we get her on the line, we will find out how exactly that coordination worked between Britain and Pakistan, and how that intel led to those arrests that were made today.

We're going to take a quick break -- more LIVE FROM right after this.

(COMMERCIAL BREAK)

PHILLIPS: Twenty-four people arrested so far, maybe more. Raids are still ongoing, intelligence coming from Pakistan to the U.K. And, as you know, it has been our lead story throughout the day, a massive terror plot shut down -- more than half-a-dozen airplanes allegedly set to be blown up by liquid explosives.

On the phone with us now, a spokeswoman for Pakistan Foreign -- the Foreign Ministry, Tasneem Aslam. I want to make sure we are connected with you from Islam -- Islamabad.

Ms. Aslam, can you hear me OK?

TASNEEM ASLAM, SPOKESWOMAN, PAKISTAN FOREIGN MINISTRY: Yes. Yes.

PHILLIPS: Tell me about the intelligence coming from -- from your country to the U.K. How did this begin?

ASLAM: Well, this cooperation in this particular case was spread over a period of time.

And arrests in the U.K. have followed active intelligence- sharing, in cooperation between Pakistan, the United Kingdom, and the United States. And Pakistan, in fact, played a very important role in uncovering and breaking this international terrorist network. There have been some arrests in Pakistan, as well, which were coordinated with arrests in the United Kingdom.

PHILLIPS: And there has been a lot of pressure, since 9/11, on -- on the leader of your country to crack down on terrorism, and to coordinate, not only with the U.S., but U.K. and other countries, to track down terrorists, and try to avoid attacks, like what we saw on 9/11, and what could have happened today and possibly throughout the next couple of days.

Do you see this as a positive step toward bettering relations with the U.K., with the U.S., and cracking down on these types of plots?

ASLAM: Well, history didn't begin with 9/11. Actually, how this region was steeped with terrorism, there's a history to that.

Of course, Afghan war against Soviet Union, how these people were brought in here, trained, that -- after that. They developed their own agenda, and, of course, so many times, we are called upon to...

PHILLIPS: Ms. Aslam, are you with us? We are having a tough time via the phone lines with Tasneem Aslam with the Pakistan Foreign Ministry. She is the representative that we have been trying to get in touch with, just to talk about this coordination that has taken between Pakistan, the U.K., and even the U.S., with regard to intelligence.

It was intel that came from Pakistan that helped the U.K. track down these suspects living in -- in neighborhoods, British-born, but of Pakistani descent.

If we can get her back on the phone, we will try and continue that conversation, but Pakistan playing a big role in what has happened today.

Now, New York Governor Pataki is holding a news conference at this hour.

Carol Lin has more on that.

What does he have to say, Carol?

CAROL LIN, CNN CORRESPONDENT: Well, Kyra, it's interesting that Ms. Aslam was saying that history did not begin with 9/11, but, for this country, a big impact, clearly.

And Governor George Pataki, the governor of New York, had this to say about the environment today.

(BEGIN VIDEO CLIP)

GOV. GEORGE PATAKI (R), NEW YORK: Today's incidents point out what I think most of us already knew, which is that we have got to have an ongoing commitment to protect the freedoms and the people of this country, because we are in an ongoing war against those who want to attack us again.

As we approach the fifth anniversary of September 11, too often, people think that it's something in the past. But today reminds us that it's not just the past; we have to be vigilant today, and we have to be vigilant tomorrow.

In response to the federal government's raising the alert levels to red for flights coming from England and for orange for all flights in the country, we obviously have significantly increased the security here at airports in New York.

We have increased the Port Authority Police presence and activities. We have expanded undercover patrolling, as well. And we have also increased the number of National Guard involved in protecting transit facilities, including the airports in New York.

(END VIDEO CLIP)

LIN: So, Kyra, the governor doing what at least two other governors, Mitt Romney in Massachusetts, Arnold Schwarzenegger in California, beefing up -- calling up the National Guard, beefing up transportation centers, and taking this threat very seriously -- Kyra.

PHILLIPS: All right, Carol Lin, we will get other details there, as we get more information from state to state on how every governor and mayor is reacting to security in this country, after that failed plot.

Meanwhile, the stock market is notoriously skittish about world events. So, what we are seeing on Wall Street today is a bit of a surprise.

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

Susan, usually, we do see a big impact, but you are saying not so much today? SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, Kyra, it's really interesting.

And there's a whole bunch of reasons. Right now, stocks are rallying, though, after starting -- starting just modestly lower, trading sideways. And, now, as you can see, modest gains on the markets -- the Dow Jones industrial right now up 37 points. The Nasdaq is up eight points, or about almost half-a-percent.

A few reasons why -- one is that the news came out, you know, a few hours before the opening bell. Investors took -- could digest it. We have had terror scares before. This one, fortunately, appears to be foiled.

The third one is that there's something called the transports index, which is extremely sensitive to changes in the economy. It's sort of a harbinger of things to come. And that index has been holding up real nice. And that was sort of a buy signal, according to some of the traders I spoke to.

Now, in terms of some sectors, totally different story. Some airline stocks, not surprisingly, are getting hit, although they're off their earlier lows. The three airlines allegedly targeted, AMR, the parent of American, losing 1 percent -- both Continental Airlines and UAL, the parent of United, dropping about 3 percent.

European airlines and travel companies are sharply lower, especially British Airways, which has heavy exposure to the transatlantic route that was targeted. Its shares are down 4 percent -- some stocks however, moving in the opposite direction, such as security countries, especially those with technology that protects airports or airlines. They're certainly in demand today -- Kyra.

PHILLIPS: Well, what about oil prices? How did they react?

LISOVICZ: Another great story here -- oil prices taking one of their biggest one-day drops of the year, down $2.35 right now. That does make sense, when you think that the terror plot has led to canceled flights.

Security concerns could depress consumer confidence and dampen demand for air travel and jet fuel in the coming weeks -- crude prices falling $2.35, to close at $74 per barrel.

But many analysts say that prices will start creeping back up before long, because the underlying supply crunch still exists. And we -- we're talking about it, certainly, every day this week, with the BP situation, among others.

That's the latest from Wall Street.

Stay with us. LIVE FROM will be right back.

(COMMERCIAL BREAK)

PHILLIPS: Well, a sinister plot against as many as 10 airliners high above the Atlantic -- here's what we know right now.

The plotters allegedly planned to set off liquid explosives board planes leaving London New York, D.C., or California. British police have arrested 24 suspects so far. Crucial information about the plot, especially the timing, came from suspects arrested in Pakistan.

The intel prompted Scotland Yard to raid homes in London and beyond, beginning overnight and throughout the day. Here in the U.S., governors in Massachusetts and California are not taking chances. Mitt Romney has deployed the National Guard to Boston's Logan Airport.

Arnold Schwarzenegger is sending Guard troops to L.A., San Francisco, and Oakland.

Now, we have been learning more about the arrests made today in this raid.

Major General William Webster joins me now on the phone.

If you don't know that name, let me tell you about the U.S. Northern Command. He is the operations director there in Colorado Springs, Colorado.

General, glad to have you with you -- or glad to have you with us.

Just to set up for our viewers: U.S. Northern Command set up after 9/11 to try to prevent exactly what we saw attempted in the U.K.

And that is, your job is to protect the skies, the sea, and the land. I know you have been watching this for days. Tell me when you first became aware of this threat and what you have been doing from your command center.

MAJOR GENERAL WILLIAM WEBSTER, OPERATIONS DIRECTOR, U.S. NORTHERN COMMAND: Thank you, Kyra.

Yes, our job here in NORTHCOM is to deter, prevent and defeat those threats to North America. We were working with other agencies and the Department of Homeland Security well in advance of -- of the events that you see on the news today.

It probably wouldn't be helpful to talk about exactly how long, but we have been working on this a long time.

PHILLIPS: Now, NORTHCOM also has been coordinating with intelligence agencies and international partners.

So, how much can you tell us with regard to talking to the U.K., talking with Pakistan, and just being on guard for any type of aircraft that could get airborne and come into the U.S., possibly with explosives on board?

WEBSTER: Well, part of our command, first of all, is NORAD. And our NORAD fighters and the -- the great airmen who fly those are -- are on guard all the time. We work closely with our allies and with

PHILLIPS: ... U.S. possibly with explosives on board?

MAJ. GEN. WILLIAM WEBSTER, U.S. NORTHERN COMMAND: Well part of our command, first of all, is NORAD and our NORAD fighters and the great airmen who fly those are on guard all the time. We work closely with our allies and with other federal agencies on a daily basis to keep track of the threats that we know about, threats that are evolving and just growing, and those that are heavy against us so that we can take the right actions and prevent them from doing what they want to do.

PHILLIPS: And just to get a little more detailed, general, because I have had the chance to cover this before, if our viewers don't know. There at northern command, with NORAD, if, indeed, an aircraft does become a threat to a major building, or to civilians, you have the ability there, at NORAD, to launch those strike fighters and either try to get that hijacked aircraft down on the ground, but that call may come from the president that you may have to shoot it down, as well, if, indeed, it's going to put more people at danger, correct?

WEBSTER: That's correct Kyra. That's our job 24/7 to watch the skies and make sure those kinds of threats are not able to carry through with the acts they want to.

PHILLIPS: So let's talk about why this was such a success in the U.K. When you basically sat back at that command center and just thought whew, I didn't have to act today.

WEBSTER: Well, we dodge those bullets on a regular basis as we deter enemy threats from people who want to do terrorist acts in the United States. We were talking to the Department of Homeland Security. We were aware of the actions being taken by our allies in the U.K. and in Pakistan and it was fortunate for us that although we had fighters prepared to take off, that we didn't have to do that, so we felt good about it.

PHILLIPS: General, you are monitoring all the airports here in the United States. We have heard from the governors. We've heard from the mayors, everywhere from L.A.X to Chicago to Boston that they are increasing security and the threat level has been raised. Tell me how you coordinate with the Department of Homeland Security and these various leaders from state to state, because you have to be involved in that process of, OK, here's what you should probably do to take special care to a possible threat today or tomorrow or the rest of the week or month?

WEBSTER: Well that's right, we have a large inter-agency working group here that meets daily and we coordinate through them back to the agents, the federal agencies. We have close ties to our National Guard, which of course works for the state governors until they are federalized. And the governors have the authority to place those guardsman out there in airports or other port facilities to provide security for our critical infrastructure. As we work through that with them, if they need additional assistance, they can go to the president and ask for that additional assistance and we provide it on short notice.

PHILLIPS: So General, what do you think about what's happened today with regard to governors calling in the National Guard at various airports and raising the threat level. Why do you think that was necessary today?

WEBSTER: Well, the governors know their airports best in their home states. And they have the ability there to judge the security levels and the confidence of the people who are using those airports. And they've got their National Guard at hand so they can use them to beef up security if necessary. And we think it's a good idea in this case. This enemy we are fighting is a learning, adapting enemy and these terrorists want to kill millions of freedom-loving people. So, every chance we get to deter them from being able to carry that out, we are in much better shape.

PHILLIPS: And the latest information to come across about one, possibly more of these suspects, being employees at Heathrow Airport, how do we know that we don't have those type of individuals working in our airports here in the United States?

WEBSTER: Well, I know that the Transportation Security Administration is working very hard to screen the people who work there. And the airlines work very hard to screen their people, too. We are assisting them whenever necessary to make sure that we have got the right people working in the right place.

PHILLIPS: Major General William Webster, director of operations there at U.S. Northern Command and NORAD. Appreciate your time, sir, I know it's been a busy day.

WEBSTER: Well, thank you very much.

PHILLIPS: Well President Bush says that the terror plot is one more battle in the war against, quote, Islamic fascist. Our White House correspondent Elaine Quijano has more on that, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good afternoon to you Kyra. At a time when the Bush administration has faced intense criticism over its policy in the war on terror. The president today says that he believes that the United States is safer than before 9/11. The president is in Wisconsin, originally scheduled for an event which took place on the economy. Later a fund raiser. Now we understand he is in a private, closed meeting with family members of U.S. service personnel who have lost their lives. But earlier on the tarmac there in Green Bay, Wisconsin the president said that Americans will, in fact, be inconvenienced by the precautions that the government is now taking but he said the foiled plot is a reminder serious threats still exist.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The recent arrests that our fellow citizens are now learning about are a stark reminder that this nation is at war with Islamic fascists who will use any means to destroy those of us who love freedom, to hurt our nation.

(END VIDEO CLIP)

QUIJANO: And, in fact, the president has been in close consultation with British Prime Minister Tony Blair. Over the weekend the White House released a photograph of a teleconference between the two world leaders. At the time they said the discussions were centering around the Middle East crisis. Now, of course, we know that, in fact, the discussions also included conversations about the investigation into the alleged terror plot. Now the president today called the cooperation between the two governments, excellent and solid, in describing not just the government as a whole, but the particular agencies involved. And the president also took the opportunity to implicitly defend the strategy that his administration has employed in conducting the war on terror. The president saying that is why, referring to the terror plot, that is why we have given our officials the tools they need to protect our people, Kyra.

PHILLIPS: All right, Elaine Quijano, thanks so much.

A terror plot revealed in London and immediate changes at airports around the world. What can you take with you, what do you have to leave at home, how life has changed.

Also today's foiled plot has earmarks of al Qaeda. So where is Osama bin Laden? Now more than you ever need to know about knowing your enemy. Watch a special "CNN PRESENTS:" In the Footsteps of Bin Laden. That's Wednesday night, August 23rd, 9:00 p.m. Eastern.

(COMMERCIAL BREAK)

PHILLIPS: Well a potentially lethal combination and it all starts with a sports drink. We are learning more about the explosives material that the terror suspects planned to use in that airline plot.

Our John King joins me now live from Washington, working his sources and always bringing us new developments. Hi, John.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Hello to you, Kyra. This is quite fascinating when you look into this and what the counter-terrorism officials suspect was happening, what this terror cell in Britain was planning.

You might remember a couple hours back, Andrea Koppel had some fascinating reporting off Capitol Hill, what intelligence officials were telling members of Congress and their staff. And she reported that one of the concerns, they said, was the use of a British sports drink, the equivalent of Gatorade, essentially, as part of this plot.

Well, we've been working with sources, and I just got off the phone a short time ago with a counter-terrorism official involved with U.S. intelligence who said that, in fact, is one of the concerns, that a sports drink, a sports drink like that could be used as part of this explosive cocktail.

The official quoted down to say it could be combined with some form of explosive like a peroxide based paste, some other material, into a small potent explosive, if done properly, of course.

They said that's one of the reasons we saw the TSA banning -- and you are seeing the list here -- perfumes, liquids, paste, toothpaste, hair gels, and things like that, because they say they have actionable intelligence from British officials that that's what the terrorists are trying to do, to get some materials on in beverage containers and in liquids, other materials on disguised, perhaps, as toothpaste or hair gel and to use that once on the plane to create some sort of a cocktail.

I also spoke to another former government official who is a top explosive expert when was in the government. And this official says that you could also do this with ammonium nitrate, this official also saying that he does not dispute when people are saying these people may have had al Qaeda ties, Kyra, but he says anyone who says they believe it's al Qaeda just because of the sophistication of what they are doing, the official said he would dispute that.

He said, unfortunately, you can go on the Internet and learn a lot about this bombmaking but, again, quite fascinating. They are talking about maybe using a sports drink and then a toothpaste tube or a hair gel tube or something else, combining these elements on board, then something as a trigger, perhaps a keyfob (ph), perhaps an iPod, some sort of electronic device, if necessary.

It's quite fascinating what they're looking at, and they're crediting British intelligence who are doing a fascinating in foiling this plot, Kyra. The question now is, how does this affect the rules at airports not only today, in the hours after this, but heading on into the future.

PHILLIPS: John King, wow. And the talk has been how sophisticated this is, yet you are saying toothpaste and Gatorade. It sounds like anyone something anyone could logon and put this recipe together, yet you've got analysts sitting back saying this is sophisticated work.

KING: Well, it is sophisticated work to be able to pull it off, we are told, to be able to get it so you can reduce the materials into the smallest possible containers, and then have one terrorist maybe bring something on, another terrorist bring something else on.

One person was telling me that there are scanners at the airport -- you know, sometimes they use that white cloth, they wipe it on your bag, and then they take it over to the sniffing machine. Those are all calibrated, and they're calibrated to what officials think is about the right level they want to test at.

One official speculating perhaps those tests will become more stringent. They don't want the machines to be too sensitive because then you have so many false positive, you'll back up the lines outside the airport.

But after something like this, if you are talking about a peroxide-based paste or some other explosive material that they've worked, officials say that may be one adjustment in airport security, make those machines a bit more sensitive, because if it's in the far end of the bag and they wipe one end, this official saying you could get away with getting that in a bag if they don't test that exact area.

So a lot to watch for into how. We know in the immediate concern what's been done -- no liquids, no hairspray, no paste, no gels, things like that. It will be very interesting to see what happens tomorrow, next week and beyond, and how they adjust what happens at airports.

PHILLIPS: Yes, we'll be following it. John king, thanks a lot.

Well, our Carol Lin has also been tracking every detail of this story all day. Carol, what do you have for us?

CAROL LIN, CNN ANCHOR: Well, Kyra, this has been -- this story has been unfolding since the wee hours of the morning and overnight in Great Britain. It's important to catch people up, in case they're tuning in, to exactly what happened.

(BEGIN VIDEOTAPE)

LIN (voice-over): British authorities say they had to act immediately. The alleged plot was designed to blow up several airliners flying from Britain to the U.S. Since late last night, they have made more than 20 arrests, mostly British citizens, some of Pakistani decent.

PETER CLARKE, SCOTLAND YARD: The investigation has focused on intelligence which suggested that a plot was in existence to blow up a trans-Atlantic passenger aircraft in flight. The intelligence suggested that this was to be achieved by means of concealed explosive devices, smuggled onto the aircraft in hand baggage.

LIN: The British say they had been investigating the plot for months, but did not disclose why they decided to act now. U.S. sources tell CNN that information gathered after recent arrests in Pakistan convinced British investigators it was time to stop it. U.S. Homeland Security secretary Michael Chertoff put it this way ...

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: There were very concrete steps underway to execute all elements of this plan.

LIN: Chertoff said plotters planned to carry liquid explosives and detonators.

CHERTOFF: Disguised as beverages, electronic devices or other common objects.

LIN: By Midday in London, more than 200 flights were canceled and new security measures were immediately put into place at airports in England and the U.S. The danger, however, has not completely passed. British home secretary John Reid said ...

JOHN REID, BRITISH HOME SECRETARY: We're confident that the main players have been accounted for.

LIN: But other arrests are still possible.

(END VIDEOTAPE)

LIN: So, Kyra, since then we have seen at least three governors right here in the United States activate the National Guard to position them at major airports, like Logan, like Newark, like LAX.

And there's a really interesting blog that was written by Anderson Cooper's executive producer, David Doss. He was describing how they were able to get Anderson from Tel Aviv suddenly all the way to London. They had to charter a plane, and one of the readers of the blog replied that pretty soon, it's only going to be the very rich and a few executives that can fly, because this is going to be the mode of transportation.

Some domestic airlines are warning that it's going to be three to four hours that you have to get to the airport ahead of your flight because of the additional security precautions today.

PHILLIPS: All right, Carol. Thanks.

Well, how are America's airports handling all the delays? Our meteorologist Reynolds Wolf is keeping an eye on the sky. A look at the flight tracker coming up when LIVE FROM continues.

(COMMERCIAL BREAK)

(WEATHER REPORT)

PHILLIPS: Well, if you're bound for the airport, get ready to wait, just like Reynolds said. And then wait some more, and probably some more.

Security agents are looking hard at anything and everything that's passing by them,and many things that passed inspection yesterday aren't today.

Well, here's what reporter Jeanne Herwerth of CNN affiliate KPHO found in Phoenix.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: We want all liquids in here. Perfume, water, even lotion, hair spray.

UNIDENTIFIED FEMALE: Lotion? Mouthwash?

UNIDENTIFIED MALE: Perfume.

UNIDENTIFIED MALE: I wish I would have known ahead of time. You know, if you don't watch the news, then you don't hear about it. UNIDENTIFIED FEMALE: $80 bucks worth of make-up. That hurt! I think I need some tranquilizers.

JEANNE HERWERTH, KPHO REPORTER (voice-over): Penny Neill (ph) tried to maintain a cheerful disposition after having to throw away hundreds of dollars worth of goods...

UNIDENTIFIED FEMALE: It's not your fault.

HERWERTH: ... before boarding her airplane at Phoenix's Sky Harbor Airport.

UNIDENTIFIED FEMALE: You know, you'd like to think that somebody knows what they're doing, and that this must be necessary, but I don't think you did blow up a plane with blush.

UNIDENTIFIED MALE: We want all liquids in here.

HERWERTH: Regardless, makeup, toothpaste, toiletries of any kind had to go.

UNIDENTIFIED FEMALE: Lotion.

UNIDENTIFIED FEMALE: Hope we make it to the plane on time.

HERWERTH: Some travelers took the news better than others, though they wondered if it was really necessary.

UNIDENTIFIED FEMALE: I think we should use more common sense than just going crazy. But, you know, what are you going to do? You got to follow rules.

HERWERTH: Even flight attendants had to follow the new rules. They were also going through their carry-on luggage and getting rid of forbidden items.

UNIDENTIFIED MALE: I mean, if that's what they feel is necessary, then that's fine, but, you know, I didn't really know until we got here. And like she said, $30 of hair gel -- you know, for us students, $30 is $30.

HERWERTH: Frustration set in. Travelers shook their head in disbelief, and the line just got longer, and longer, and longer.

(END VIDEOTAPE)

PHILLIPS: All right. Let's get to Susan Lisovicz. She's got the closing bell, coming up next.

(COMMERCIAL BREAK)

PHILLIPS: Carol Lin with breaking news on the terror threats from today. Carol, what do you have?

LIN: Kyra, according to the Associated Press here, U.S. intelligence officials say terrorists hoping to blow up as many as ten airplanes. They had planned to stage a dry run within two days. Kyra, we know that British officials said that they said that now was the time because it was simply getting too close to an active operation.

Also, CNN confirming that two of the alleged ringleaders had actually traveled to Pakistan. The two also later got money wired from Pakistan, reportedly to buy airplane tickets. And according to ABC News, which we're checking on this right now, that two of the men arrested had also prepared martyrdom tapes. So we're trying to confirm that, as well. But we want to bring you all the angles of the story as soon as we get them -- Kyra.

PHILLIPS: All right, Carol, thank you so much.

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