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Lebanese Cabinet Agrees to Deploy Troops to Southern Lebanon; Federal Authorities Arrest Reputed Drug Kingpin

Aired August 16, 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: It's the top of the hour.
And our "Top Story" is the feds saying that they have netted one of the biggest fish in the illegal drug trade. Reputed Latin American drug kingpin Francisco Javier Arellano-Felix is one of 10 suspects caught today by the U.S. Coast Guard. He and his brother top the DEA's most-wanted list, accused of shipping massive amounts of cocaine and marijuana into the U.S.

CNN's justice correspondent, Kelli Arena, has the latest for us -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: Well, Kyra, his brother is still at large, but Javier Arellano-Felix is in custody. He's en route back to the U.S. on a Coast Guard ship.

Officials describe his organization as one of most dangerous and successful drug organizations in the world. In fact, it's the cartel that was behind that big tunnel, if you remember, Kyra, that was uncovered back in January that connected California and Mexico.

Well, Arellano-Felix is one of the DEA's most wanted. As you said, he had a $5 million bounty on his head. He was actually indicted back in 2003 for racketeering, money-laundering, and conspiracy to import huge amounts of drugs into the United States. Officials say that they got a tip just a few days ago that he was on board a fishing vessel.

(BEGIN VIDEO CLIP)

PAUL MCNULTY, DEPUTY ATTORNEY GENERAL: On August 14, just two days ago, DEA received information that this vessel, Doc Holiday, was approximately 15 nautical miles off the sure of La Paz, Mexico.

And, acting on this lead, the DEA requested that the United States Coast Guard interdict the vessel. Following the interdiction of the vessel in international waters, a boarding took place by the U.S. Coast Guard personnel, and eight adults and three juveniles were discovered on board and detained.

(END VIDEO CLIP)

ARENA: Now, officials aren't publicly saying, but sources describe two of those men that were detained as assassins for the drug cartel.

Now, authorities say that those two will initially be held as material witnesses, and, later, they will be charged -- Kyra.

PHILLIPS: All right, Kelli.

Meanwhile, the search is still on for the brother, right? Any...

ARENA: That's right.

PHILLIPS: Any tips leading to him or...

ARENA: You know, the DEA is -- is being very closed-mouth about what it has and what it doesn't have. But -- but he does remain on that most-wanted list. And he, too, carries a $5 million bounty -- Kyra.

PHILLIPS: Wow. Kelli Arena, thanks.

ARENA: You're welcome.

PHILLIPS: Well, keep them or let them go? The immediate fate of 22 suspects in the foiled London plot awaits the decision of a judge. Anti-terror laws passed after last summer's transit attacks allow the Brits to hold suspects without formal charges for four weeks, if judges see a reason why.

Investigators, meanwhile, are still compiling evidence of a so- called liquid bomb plot against transatlantic jets. They are also tracking leads in Pakistan.

Well, weeks of fighting have ended, but the questions are just beginning -- among them, did Israel win or lose?

CNN's Paula Hancocks reports.

(BEGIN VIDEOTAPE)

PAULA HANCOCKS, CNN CORRESPONDENT (voice-over): Israel's border with Lebanon is busy again, but the traffic is going the other way, back into Israel.

The conflict in southern Lebanon is over, but Hezbollah has not been crippled, their rockets not stopped by Israel's military might. And the two Israeli soldiers whose kidnapping sparked four weeks of deadly fighting are still in enemy hands.

But most worrying of all for Israel, believe some analysts, is damage done to its military deterrence in the Arab world.

LEE SUSSER, POLITICAL ANALYST: Deterrence is a question of perception. And the way the war is perceived in the Arab world at this point is that the small band of sturdy guerrillas was able to stand up to Israel, and blunt the military might of what is probably the most powerful army in the Middle East.

HANCOCKS: But Israel's deputy prime minister sees things differently. He believes the perception of Israel's military might is intact. SHIMON PERES, ISRAELI VICE PREMIER: We estimate that Hezbollah lost something like 600 fighters. And, if they lost 600 fighters, one can imagine there is another 600 that were wounded.

HANCOCKS: So, what did Israel achieve? The political echelon here consistently refers back to the United Nations resolution, considering it a diplomatic victory.

TZIPI LIVNI, ISRAELI FOREIGN MINISTER: Only a month ago, nobody could have believed that the Lebanese army will be deployed to the south part. Nobody could have believed that Hezbollah will agree to this kind of understanding of deployment of the Lebanese army, plus international forces.

HANCOCKS: Former Minister Livni calls Hezbollah fighters captured during the war assets. Politicians still balk at the term prisoner swap, though political sources say it is certainly an option.

(on camera): New opinion polls published Wednesday make very depressing reading for Israel's leaders. Seventy percent believe Israel should not have agreed to a cease-fire without the soldiers' release. Only 30 percent believe that Israel won the war, the same percentage that believes that Hezbollah won.

Paula Hancocks, CNN, Jerusalem.

(END VIDEOTAPE)

PHILLIPS: Well, from bomb shelters to bombed-out homes, a strange and sorrowful journey for many on both sides of the border. Both sides need a plan, hope, hope to rebuild.

CNN's Hala Gorani has the Lebanese side from the Lebanese capital, Beirut.

(BEGIN VIDEOTAPE)

HALA GORANI, CNN CORRESPONDENT (voice-over): Where to even start rebuilding? The southern suburbs of Beirut, three days after the cease-fire -- residents are returning, and, before reconstruction can even begin, the cleanup, the heavy lifting, and a surreal gesture. A resident dusts off a picture in a high-rise apartment with no exterior walls.

On the streets, people almost shrug off the devastation.

UNIDENTIFIED MALE: I can live without walls, without -- but I have to -- to be free first.

GORANI: And although Hezbollah has promised to rebuild destroyed homes, there is a dose of realism, too.

(on camera): What are you thinking about rebuilding?

UNIDENTIFIED MALE: It will take a -- a long period. And it will take a very large time, and two years, at least. GORANI (voice over): In this part of Beirut, it is still Hezbollah that calls the shots. We come accompanied and are escorted around. We are repeatedly told, Hezbollah will pay for reconstruction and help residents put their lives back together.

(on camera): Officials here aren't just keen to show us how residents are rebuilding their homes. They also want us to see that Hezbollah's voice is back on the air from the very headquarters that were flattened by an Israeli airstrike just a few weeks ago.

(voice over): In this war, information is also a weapon. And Hezbollah has kept its TV station, Al-Manar, on the air throughout the conflict, from a secret studio location.

Ibrahim Mousawi is an Al Manar executive.

IBRAHIM MOUSAWI, CHIEF FOREIGN NEWS EDITOR, AL-MANAR TELEVISION: We have their -- these makeshift studios in order to take their reactions, their support, their devotion, and in order to tell the Israelis that, no matter what you do, Al-Manar is going to continue to broadcast, even from the rubble and the debris that you see here. The voice is going to continue to appear.

GORANI: It may not be a feeling shared by all Lebanese, but there is no doubt as to who residents of south Beirut blame for the destruction and who they think is victorious. Even the bright yellow tape cordoning off flattened buildings call this war a divine victory for Hezbollah.

Hala Gorani, CNN, Beirut.

(END VIDEOTAPE)

PHILLIPS: Well, a breakthrough in Beirut -- the Lebanese cabinet has OKed a cornerstone of the U.N. cease-fire agreement, deployment of the Lebanese army into the former war zone.

CNN's Jim Clancy has the details for us -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Well, finally, we heard from the prime minister, Fouad Siniora, tonight. We had heard from the presidents of Iran and Syria. We had heard from the head of Hezbollah.

Now, the prime minister perhaps waiting for this cabinet decision -- it came unanimously, deciding to dispatch the Lebanese army down to the border, the prime minister asserting, number one, this country wants to implement Resolution 1701. They want Israeli troops out of Lebanon.

They want to reclaim authority over all of their territory. Most of all, he says, they don't want any more international conflicts battled out on Lebanese soil.

(BEGIN VIDEO CLIP) FOUAD SINIORA, PRIME MINISTER OF LEBANON (through translator): We don't want to be part of any regional conflicts. And we're committed to the Arab causes, especially the Palestinian cause, who we worked for from the very beginning, in support of all Arabs, and to work hard without being -- but we are part of this. We feel that we are not outside the Arab identity.

(END VIDEO CLIP)

CLANCY: Not outside the Arab identity, but, clearly, by sending the Lebanese army -- and that's a process that, at this hour, is already under way -- some of those troops assembling, some of those troops on the road. They will be going southward to the Litani River, where they will begin to to -- deploy, we are told, by the cabinet ministers, all the way down to the Blue Line, the border with Israel.

However, there are unanswered questions, many questions in the minds of those who are concerned about Hezbollah and its arms -- apparently, the cabinet leaving that up to the Lebanese army. As CNN understands the deal right now, it would allow Hezbollah to hide their weapons, and not bear any arms in the south, south of the Litani -- apparently, Hezbollah giving assurances to the Lebanese army that, if they find anyone with any arms, they are free to take them away. Or, if they find any arms like rockets, they could also seize those.

But the Lebanese army, we have heard, is not going to go looking. Big question: Will that be amenable to the Israelis? In any event, dispatching the Lebanese army -- in the words of Minister Marwan Hamade, one of the anti-Syrian March 14th coalition members, sending the army is a prerequisite for getting international peacekeepers here.

(BEGIN VIDEO CLIP)

MARWAN HAMADE, LEBANESE TELECOMMUNICATIONS MINISTER: We took a -- a decision to send the army, starting tonight, to the south. This is a first move towards deploying the United Nations forces, the UNIFIL, because, if we don't take the initiative, nobody will come to help us.

So, this is a message to our citizens who went back to the south, that we are going ahead to ensure the total Israeli withdrawal, and, also, to the world, that it is high time they send the U.N. troops they have promised us.

(END VIDEO CLIP)

CLANCY: Now, Israel, of course, still has an air, land and sea blockade in effect -- an appeal from the French foreign minister for that to be lifted that today. But, considering the security arrangements, it will be up to Jerusalem to decide that -- back to you, Kyra.

PHILLIPS: Jim Clancy, thanks so much.

Well, like father, like son -- a young man one generation from the right hand of Osama bin Laden, what choices did he have? What choices did he want to make? And why did he decide to put a legacy of terrorism behind him?

His fascinating story -- when LIVE FROM continues.

(COMMERCIAL BREAK)

PHILLIPS: Well, a problem passenger forces an itinerary change for United Airlines 923. Here's what we know about the flight from London that was diverted to Boston.

It's expected to arrive at Dulles Airport, outside Washington, about 4:00 Eastern, five hours behind schedule. The pilot landed in Boston, after a 60-year-old female passenger reportedly kicked up a fuss. On the ground, FBI agents questioned everyone, and checked every piece of luggage. They tell CNN, there was no security threat.

On its Web site, United attributes the delay to customer service.

It's still to be a flight to remember for all on board and for those who are waiting for them in Washington.

Our Gary Nurenberg is at Dulles right now -- Gary.

GARY NURENBERG, CNN CORRESPONDENT: Good afternoon, Kyra.

These passengers are getting bounced around a little bit. We reported earlier today that United expected the flight would finally arrive here in Dulles about five hours after originally planned, at 4:00 this afternoon.

Just off the phone with a United spokeswoman Brenda Borman (ph), who says that has now been delayed, as the FBI continues to interview both the 182 passengers and 12 crew members who were aboard that Boeing 767 when it landed in Boston this morning. That interview process is still going on.

The passengers in Boston are going through a customs process, as well. And United is waiting to had hear from the government, from Customs and FBI, in terms of when those passengers and crew will be released, so they can finally get on that plane and come back home.

Law enforcement authorities told CNN earlier in the day this does not appear to be terrorism-related. It's apparently the story of one 60-year-old woman who was involved in an altercation of some sort, either with other passengers and/or, eventually, with the crew -- the incident serious enough that the pilot diverted to Logan, was followed in by military jets that had been advised what was going on, on board.

As you say, the passengers were escorted off the plane -- all of the baggage taken out of the hold and searched on the tarmac by bomb- sniffing dogs -- and, to repeat, passengers and crew still being interviewed by TSA and FBI officials right now.

There are competing law enforcement sources giving competing information about what that altercation was about. Original reports, that the woman had on -- on board banned material, a Vaseline-like hand cream, those reports are being investigated by authorities now.

We're told that she, apparently, did have with her some matches of some kind, but are now being told by law enforcement officials that these are appropriate matches to have on board the flight, that it is appropriate for her to have them, legal for her to have them.

The exact things that she had in her possession that are in question are being examined now by those investigators in Boston. But, to repeat, law enforcement authorities say there was no security threat, and this is not terrorism-related.

Kyra, as you can see, the story keeps changing a bit, as we get these conflicting reports. Now it appears those passengers will leave Boston some time between 4:00 and 5:00 this afternoon. And now the updated arrival time here in Dulles is 6:00. But, as we have learned today, Kyra, that could change at any time.

PHILLIPS: Isn't that the truth?

(LAUGHTER)

PHILLIPS: Gary, thanks.

Well, Wal-Mart has been criticized recently by some politicians for its labor practices. But now the world's biggest retailer is hitting back.

Cheryl Casone, live from the New York Stock Exchange, with that story.

What's the deal, Cheryl?

CHERYL CASONE, CNN CORRESPONDENT: Well, hey there, Kyra.

Wal-Mart sending out what it calls a voter education guide to its 18,000 employees in the state of Iowa. Now, the guide criticizes several Democratic presidential hopefuls who have attended rallies organized by the union-backed group Wake Up Wal-Mart.

The group alleges that Wal-Mart fails to provide health care for more than half its workers, pays substandard wages, and helps to ship U.S. jobs overseas by selling low-priced imports. Now, Wal-Mart contends that the attacks are not true.

Now, why the state Iowa, you might ask. Well, it's because the site -- it is the site of the country's first presidential caucus -- and potential candidates for 2008, Kyra, already visiting the state.

PHILLIPS: Well, President Bush -- speaking of visiting -- he's touring a Harley-Davidson plant in Pennsylvania. Is that why the stock is higher today?

(LAUGHTER)

CASONE: I don't know about that. Good point. Yes.

(LAUGHTER)

CASONE: Shares are Harley are jump -- definitely jumping more than 2 percent right now.

But to find that quote, you would have to search under the new ticker symbol for the company. It's HOG. That have switched to H-O- G, kind of cool. The company switched from its previous symbol HGI, yesterday, to reflect a common nickname for their motorcycles.

And Harley isn't the only one getting cute with their ticker symbol, because there's a couple other ones that you might not know about. Anheuser-Busch trades under the simple BUD, B-U-D, which they say is a crisp, refreshing ticker.

And Southwest Airlines, which has always promoted itself as that, you know, customer-friendly, happy airline, adopted the ticker LUV, L- U-V, kind of cute -- Kyra.

PHILLIPS: Yes, that is cute.

All right, well, it seems that stocks are getting some love on Wall Street.

CASONE: They actually are.

And we have got a little -- a nice little rally going on right now -- stocks solidly higher for the second day in a row, as more evidence is trickling in, showing that the economy is slowing. That makes it more likely the Fed is going to hold off on those interest- rate hikes next month. Well, we shall see.

But, right now, investors are definitely cheering that. And there's a nice drop in oil right now, closing at $71.89 per barrel. A report on fuel inventories has also showed that gasoline supplies did not drop as much as traders hard feared, following BP's shutdown of the Prudhoe Bay Alaska oil field.

So, right now, as I mentioned, a nice little jump -- the Dow industrials gaining 103 points. We're at a three-month high right now for that -- Nasdaq composite also jumping up almost 1.5 percent right now.

Well, that is the latest from Wall Street. I'm going to be back in about a half-an-hour with a full roundup of the trading day.

Stay with us. LIVE FROM will be right back.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's supposed to keep the peace in the latest Mideast war zone. It's a huge job for a multinational force in southern Lebanon. And so is putting that force together.

CNN's Tim Lister takes a look.

(BEGIN VIDEOTAPE) TIM LISTER, CNN CORRESPONDENT (voice over): Once again, the blue helmets are fanning out across southern Lebanon. But the 2,000 soldiers at UNIFIL need help.

European negotiator Javier Solana says, the expanded force must be deployed -- quote -- "very, very quickly."

The head of U.N. peacekeeping admits, that's a challenge.

JEAN-MARIE GUEHENNO, UNDERSECRETARY-GENERAL FOR PEACEKEEPING OPERATIONS: Normally, a -- a U.N. deployment would take months. This time, we need to deploy the first elements in a matter of days or weeks. And that's going to require a huge effort.

LISTER: U.N. officials say, they expect to get about 3,000 troops into southern Lebanon within two weeks. But the full force may take up to a year to deploy. And that may be a problem, given the high expectations.

SEAN MCCORMACK, U.S. STATE DEPARTMENT SPOKESMAN: This is an -- an enhanced UNIFIL. This is just a different -- it's just -- it may have -- it may have the same name, but it is -- you know, it is a completely different organization, in terms of its size, its abilities, and its mandate.

LISTER: The U.S. won't contribute troops. And it's taking time to work out who will, as well as the precise mission of what might be dubbed UNIFIL-plus.

This much is probable: A veteran of U.N. peacekeeping missions, France will lead the new force, and contribute up to 4,000 of a 15,000- strong UNIFIL.

French Foreign Minister Philippe Douste-Blazy was in Lebanon Wednesday to discuss details.

Italy will probably be involved, too. Visiting Egypt earlier this week, Foreign Minister Massimo D'Alema said, Italy was willing to send 3,000 soldiers.

Other likely contributors, Turkey may send 1,000 troops, but wants more clarity on rules of engagement. Malaysia, a member of the Organization of the Islamic Conference, is offering at least 850. Indonesia is also ready to contribute.

Germany says it's also willing to take part. In recent years, it has sent peacekeepers to Kosovo and, under the NATO umbrella, to Afghanistan. But a deployment in southern Lebanon would be awkward.

WOLFGANG BOSBACH, CDU DEPUTY (through translator): Exactly because of our German history, we should be careful that we don't get drawn into a conflict where we face the possibility of one day having to face Israeli troops.

LISTER: The first piece of the puzzle, the dispatch of Lebanese troops to the south, should fall into place in the next few days -- UNIFIL's first job, ensure the departing Israelis and the arriving Lebanese army are kept apart, then, secure the border area, a process that could take weeks.

Other issues: How do soldiers from a dozen nations with different languages and equipment work together in such a high- pressure environment? And how do they get around, given the damage to roads and bridges, and the return of civilians?

But the current UNIFIL commander says, the biggest job isn't even the U.N.'s responsibility.

MAJOR GENERAL ALAIN PELLEGRINI, COMMANDER, UNITED NATIONS INTERIM FORCE IN LEBANON: It is up to the Lebanese authorities, to the Lebanese army, to find a solution to make Hezbollah giving back its weapons.

LISTER: History has not been kind to U.N. peacekeeping missions. Whether in Somalia, Bosnia, or Rwanda. They have often been helpless when one or both parties to a conflict sees them as an obstacle, lacking the firepower, command structure, or political backing to enforce peace.

UNIFIL itself has often been observer, as Israel and its Palestinian or Hezbollah opponents have joined battle in southern Lebanon. Now it must become a different creature.

GUEHENNO: All that is still very volatile, a very dangerous situation. And I will be -- I will be more reassured if, in a few months from now, we have seen this engagement happen peacefully, the deployment happen.

LISTER: Another meeting at the U.N. due Thursday may agree rules of engagement for the peacekeepers. There's a long way to go if UNIFIL-plus is to succeed.

Tim Lister, CNN, Atlanta.

(END VIDEOTAPE)

New developments in the Mideast.

Let's get straight our senior U.N. correspondent Richard Roth with more.

Richard, what do you have?

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Well, the French defense minister has given the first indications of the country's interest in contributing troops for the U.N. mission in southern Lebanon.

France, she says, is going to lead until February, but, before it really steps forward, it has some questions about what the minister called the fuzzy orders included in the Security Council resolution. And that's a concern for many, as the Israeli foreign minister visited here at U.N. headquarters to meet Secretary-General Kofi Annan. Many countries, before they put forward firm commitments, they want to know, what are the rules of engagement? When can the U.N. use force? They know they have to assist the Lebanese government and its 15,000 new forces being deployed. But there is still, as one former U.N. peacekeeping official put it, the usual constructive ambiguity in the diplomatic language.

As for Israel dealing with any country's -- contributing forces from countries that have been opposed to Israel or have no diplomatic relations, this is what the foreign minister told me within the last hour-and-a-half.

(BEGIN VIDEO CLIP)

TZIPI LIVNI, ISRAELI FOREIGN MINISTER: It's going to be a mixed force. We expect, also, some European states to contribute forces to this international force. And it can be also mixed with some Muslim states.

But, of course, it should be a state that have certain -- that are not part of Israel's enemies, in -- in a way. But it's going to be mixed force. And I don't want to say about one state yes or the other no right now.

(END VIDEO CLIP)

ROTH: The foreign minister said, Israel and Lebanon are really on one side, while Iran and Syria and Hezbollah are on the other. She expressed confidence, almost, in working with Lebanon, saying it's a key moment of opportunity and a test for the international community to make the peace agreement hold, and also to change the situation in southern Lebanon and the region for the future -- Kyra, back to you.

PHILLIPS: Richard Roth, thanks.

Straight ahead: like father, like son -- a young man one generation on the right hand of Osama bin Laden, what choices did he have? What chances did he have? And why did he decide to put a legacy of terrorism behind him?

Our Zain Verjee brings us his fascinating story -- when LIVE FROM continues.

(COMMERCIAL BREAK)

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