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Tom Ridge Moves to Speed up Terror Preparedness Plans; Fight for Iraq

Aired April 19, 2004 - 11:00   ET

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

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


DARYN KAGAN, CNN ANCHOR: Interest rates are still load. If you're looking to build your dream house, it's not too late. We're going to tell you which upgrades are actually worth the coast. And if you're looking to get out of the house, hear where to go this summer for some outdoor adventure and luxurious accommodations, as the second hour of CNN LIVE TODAY begins right now.
Cease-fire talks in Fallujah lead to agreements aimed at ending the violence in the Iraqi city. A spokesman for the U.S.-led coalition says all of the parties in the talks have called for illegal weapons to be turned in. The coalition says it does not plan to resume its offensive if heavy weapons are surrendered.

The CEO of McDonald's died suddenly today while attending a company convention in Florida. McDonald's says that Jim Cantalupo apparently suffered a heart attack this morning in Orlando. Cantalupo came out of retirement last January to take over as chairman and CEO of the fast-food giant. He was 60 years old.

In New York, an accident this morning involving a commuter train and an Amtrak train injured about 130 people. Witnesses say the Amtrak train struck a Long Island Railroad train from behind at Penn Station. All of the injuries appeared to be minor, mostly cuts and bruises.

It's 11:00 a.m. on the East Coast and 8:00 a.m. on the West Coast. From the CNN center in Atlanta, I'm Daryn Kagan. Good morning once again.

Up first this hour on CNN, fighting the war on terror here at home, as the nation prepares for a number of high-profile events. Homeland Security Secretary Tom Ridge wants to speed up plans to deal with any possible terrorist attack.

Our Sean Callebs joins us from Washington with details on that.

Good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Daryn. You're exactly right.

A whole host of high-profile events have the director of homeland security concerned. Al Qaeda or other terrorists may have their sights set on specific U.S. targets in the next few months. In an effort to make sure the nation is on guard, the government wants to create a special task force to better coordinate public and private security.

Now, among the major gatherings and events coming up, the dedication of the World War II memorial over the Memorial Day weekend. Tom Ridge, homeland security secretary, is scheduled to unveil the plan in a matter of minutes, about 11:15, at the National Association of Broadcasters meeting in Las Vegas. His plans call for homeland security to join with eight cabinet-level positions to protect critical infrastructure.

Now, think about it. New York and Boston will be filled with representatives for the Republican and Democratic Conventions later on this summer. Authorities also point to large gatherings for the Independence Day and Labor Day holidays.

President Bush's national security advisor, Condoleezza Rice, is also worried al Qaeda could try and disrupt the general election this fall. Yesterday, she said -- quote: "I think we also have to take seriously that they might try, during that cycle" -- talking about the election -- "to do something. In some ways, it seems like it would be too good to pass up for them."

U.S. officials need only to think back to this sobering assault on March 11, right before the elections in Spain. Terrorists target the Madrid train system, killing nearly 200 people, wounding hundreds more. The ruling party was tossed out right after that, following to rival's urging Spanish troops to pull out of Iraq.

And once again, Daryn, Tom Ridge will be speaking in about 15 minutes, outlining what he wants to do in the future in terms of creating this task force, and that's coming up about 11:15 Eastern time.

KAGAN: Out of Las Vegas, I believe. In order to speed up this plan, what type of organizations or individuals outside the government does Tom Ridge expect his department to work with?

CALLEBS: Well, it's going to be a coordination with the government, the eight cabinet-levels authorities here in Washington. But they're going to be working with the private sector as well, working with industry. They're also working with governors of various states and also what they term the first responders to some kind of incident -- fire authorities, EMTs, things of that nature. And they're trying to get all of this hammered out as quickly as possible. Ridge says he is using the directives that he has from President Bush to do this.

KAGAN: Sean Callebs in Washington.

Speaking of President Bush, his administration is disputing details in a new account of the path to war in Iraq. The information raises questions about when the decision was made to go to war and who was in on that decision.

Our Elaine Quijano has more from Washington.

(BEGIN VIDEOTAPE) ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Less than three months after the September 11th attacks, President Bush told Defense Secretary Donald Rumsfeld to start drawing up plans for war in Iraq, according to Bob Woodward's new book, "Plan of Attack."

Woodward says after that meeting with Rumsfeld, the defense secretary gave General Tommy Franks the go-ahead for war preps.

BOB WOODWARD, "THE WASHINGTON POST": And so, he starts building runways and pipelines, and doing all of the preparations in Kuwait specifically to make war possible.

QUIJANO: Where did the money come from? According to Woodward, $700 million came from funds Congress had appropriated for the war in Afghanistan -- a move Woodward says happened without Congress knowing. But administration officials defend that action.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISOR: The secretary of defense, I am quite certain, would propose to the president things that he believes are inside his purview to do with the allocation that he gets from Congress.

QUIJANO: The book also describes a CIA briefing in December 2002 to President Bush on Iraq's weapons of mass destruction capability -- one of the main reasons for going to war. Woodward says the meeting left President Bush skeptical.

WOODWARD: The president, as he's inclined to do, says nice try, but that isn't going to sell Joe public. That isn't going to convince Joe public.

QUIJANO: Woodward says Tenet replied:

WOODWARD: Don't worry. It's slam dunk case.

QUIJANO: A U.S. official tells CNN Tenet believed what he was saying based on intelligence then.

(on camera): Sunday, National Security Advisor Condoleezza Rice appeared to deny another issue raised in the book that Saudi ambassador, Prince Bandar, knew of the Iraq war plan even before Secretary of State Colin Powell. Rice said that Powell was privy to all of this and knew what the war plan was.

Elaine Quijano, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Well, the White House says that some of the events and conversations contained in Woodward's book were misinterpreted.

For more reaction, we're going to say good morning to our White House correspondent, Dana Bash, and go over some of the specific allegations made in this book.

Dana -- good morning. DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

And sort of the big picture here is that we, of course, should remember that the president himself did cooperate with Bob Woodward on this book. He gave an on-the-record interview, a long one, I think maybe more than one. And countless administration officials did speak to Bob Woodward on condition of anonymity.

So, senior officials here are saying by and large they think that this does portray what happened in the days, weeks, months, even now years leading up to the war in Iraq in an accurate way. But, as you said, there are some specific antidotes in here that they do not think actively -- or accurately, I should say, portray what happened.

One of the things that have come out is a charge by Woodward, an allegation, that the Saudi ambassador, Prince Bandar, who is very close to the president and very close to the Bush family made a deal, or at least made a promise, to the president and the White House that he would lower oil prices before the election.

Now, we just got a statement from Adel al-Jubier (ph). He is the foreign affairs advisor to the crown prince of Saudi Arabia. He says that it is natural for every administration to raise the issue of oil prices with the Saudis, but that this is something that their policy for the past 30 years has been to maintain balance, as he puts it, in the oil markets, to avoid disruptions or shortages.

Now, there is no direct response to the allegation that he made any election-year promises from the Saudis. As far as the White House is concerned, they're simply not going there, not characterizing any conversation at all, simply referring to the Saudi statements on this -- Daryn.

KAGAN: Dana, Bob Woodward has said he based this book -- as you said, he had the interviews from President Bush, but a number of unnamed administration officials. Yet, if you look at a lot of the morning papers today, it seems like people in Washington are just assuming that Secretary of State Colin Powell was a huge source and cooperated with this book, just if for no other reason he comes off looking so positive.

BASH: Well, as you can imagine, they're not going there on that one here either, Daryn. But, you know, you heard Bob Woodward asked about that on "60 Minutes" last night. He also wouldn't confirm that, as you mentioned. But there certainly is some talk behind the scenes here about what this means for the way the relationships will be from here on out between the secretary of state and particularly the vice president, because they are portrayed as really going at it, if you will, over the Iraq policy, and really as sort of not agreeing on that issue. That is something that will certainly play out behind closed doors here and perhaps in public as far as Colin Powell goes and the way his relationship is with the rest of the administration -- Daryn.

KAGAN: Dana Bash at the White House.

And this programming note for our viewers: Bob Woodward discusses the new allegations about the president and path to war on tonight on CNN's "LARRY KING LIVE." That's at 9:00 Eastern, 6:00 Pacific.

There appears to be new hope and efforts to end the siege in Fallujah. U.S. troops are no longer the only ones calling for insurgent to lay down their arms. We will tell you who is adding his voice and why it's important in a live update from Iraq.

Plus, are those marble countertops really worth it? How about the granite countertops in the kitchen? We have some financial advice for those of you thinking about building your dream home.

And, protecting your kids from offensive language on DVDs. The new options from two major retailers have Hollywood crying foul.

(COMMERCIAL BREAK)

(BUSINESS NEWS UPDATE)

KAGAN: Rocket and mortar attacks today in Baghdad, one rocket hitting the unoccupied Swedish embassy, and a mortar round hitting a house, killing a boy and his mother. The attacks follow another costly weekend for American troops in Iraq with a dozen added to the death toll. That toll now stands at 701 killed in the war, 506 of them from hostile action.

Our Jim Clancy is live in the capital with more -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Well, Daryn, there has been some dramatic developments around the siege of Fallujah, a trouble spot town in the heart of the Sunni triangle just west here of the capital of Baghdad. U.S. officials, leading the coalition, have announced today that an agreement has been reached with some of the community and religious leaders, as well as the Iraqi Governing Council, in order to reach a negotiated settlement there in Fallujah.

The U.S. is making broad concessions to the insurgent there, to the city officials there in these talks and laying out the hope that they can keep their word for their side of the deal. Now, that includes a lot of things, including handing over foreign fighters, allowing joint patrols to go into that city and reestablish some kind of law and order there.

And another one of the key demands, of course: the handover of weapons.

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION SPOKESMAN: The parties agree to call on citizens and groups to immediately turn in all illegal weapons -- illegal weapons defined as mortars, RPGs, machine guns, sniper rifles, ID-making materials, grenades and surface-to-air missiles and all associated ammunition. Those who give up their weapons voluntarily will not be prosecuted for weapons violations, and unarmed individuals will not be attacked.

(END VIDEO CLIP)

CLANCY: Daryn, a very important step by the coalition, as it was announced there, because Iraqis have been complaining that they do not really have any power right now, that when the sovereignty is handed over, they don't know how much power they're going to have. The U.S. moving here to empower the Iraqis to solve this problem. Of course, that's a very tall order. No one knows whether they can induce people to hand over weapons, induce people to turn in those foreign fighters and to get things back on even keel, back to normal there in Fallujah.

Meantime, a lot of concern in southern Iraq as well. Spanish forces there saying, of course, out of Madrid, they will be with drawing their 1,400 troops that are part of the coalition deployed around Najaf. Already signals that is being hailed by the leading troublemaker in the eyes of the U.S.-led coalition, Moqtada al-Sadr, as a victory of sorts. He ordered his illegal armed militia to halt all attacks on the Spanish forces.

Honduran government officials saying now they may withdraw their troops early, a lot of people seeing some cracks there in south- central Iraq. What it all means, how it could encourage the opposition to occupation here in Iraq still yet to be measured. It could be a trouble spot -- Daryn.

KAGAN: Jim Clancy with the latest from Baghdad.

Now, let's look at some late numbers here. At last count, 16 people from other nations are either missing in Iraq or being held hostage by kidnappers. One of the American hostages is Army Private Keith Matthew Maupin.

In Batavia, Ohio, Maupin's mother received a call yesterday from former POW Jessica Lynch and her mother, who offered their moral support.

The other known American hostage is Thomas Hamill, a civilian contractor from Macon, Mississippi. Civil rights leader Jesse Jackson says he will contact religious leaders in Iraq to try to get Hamill released.

A campus celebration gets out of hand. Hundreds of students and thousands of dollars in damages.

And, the death of a CEO. The man responsible for the new menu at McDonald's has died. We'll have a live report coming up. You're watching CNN LIVE TODAY.

(COMMERCIAL BREAK)

(WEATHER BREAK)

KAGAN: It is the latest trend in home improvement. More and more Americans are adding extras like granite kitchen counters. That would be granite kitchen counters, gourmet appliances and Jacuzzis.

Joining us from New York to talk about which perks offer the biggest payoff is Jack Otter. He is senior editor of "Smart Money" magazine. Jack, good morning. Thanks for being here with us.

JACK OTTER, "SMART MONEY" MAGAZINE: Hi, Daryn. Great to be here.

KAGAN: I saw kind of an alarming statistic, as I was going through the information today, that builders and mortgage brokers will try to tell you for every $1,000 you add onto your mortgage, oh, it's just an extra six bucks in your mortgage every month. Very dangerous.

OTTER: That is quite a sales pitch, isn't it? Of course, very few things, very few upgrades only cost $1,000. So, it's really, say, maybe $5,000. That's five times six. But, of course, you have to pay your mortgage every month. So, that's times 12. Times 30 if it's a 30-year mortgage. So, you're really looking at over $2,000 for every $1,000 in upgrades, and those can add up quickly.

KAGAN: Ah, got it. And, of course, you're not just talking about one upgrade. If you're in the market, you're going to do a lot of fancy stuff. Let's talk about what some of the best investments are. How about including a home office in your new dream home?

OTTER: That's a pretty good investment. The problem -- it's a trade-off. If you simply create that home office by adding more square footage onto your house, then you'll probably recoup that on the resale. However, if you convert, say, a bedroom into a home office because, you know, your elder daughter has gone off to college, well, then when somebody comes in to buy it, they have young children, and that's not so useful to them. They might have to spend money to reconvert that back to a bedroom.

So, the biggest bang for your buck is to actually add square footage, say by finishing a basement. But things like granite countertops that you mentioned or an island in your kitchen, those are becoming so popular that they are practically required. And so those certainly will add to the value of your home. And if you don't have them, buyers might hesitate.

KAGAN: The bar is being raised. Here's a fancy thing that I think sounds kind of attractive: an outdoor fireplace.

OTTER: Oh, well, those are beautiful. Of course, they're only useful in certain parts of the country. But they're also somewhat specialized. I mean, there are some people who would just look at that and say, well, we don't sit outside and enjoy the fire. So, it might not be...

KAGAN: Because they don't avenue the outdoor fireplace. That's why.

OTTER: Well, that's true. That's true. But they might find it an odd thing.

The real point is, if you are thinking of resale value, then you want to make sure that you're spending extra money on things that the vast majority of potential buyers will want. Now, there's nothing wrong with an outdoor fireplace or a wine cellar, but a smaller group of potential buyers is actually going to want those things. So, don't put your money there thinking that you are necessarily going to recoup it. But if you want it and you can afford it, of course, it's great.

KAGAN: Knock yourself out if you can write the check. How about adding a hot tub?

OTTER: Those are very popular. Kitchens and bathrooms tend to be sort of the most popular upgrades and the most demanded by buyers. So, as long as you remember the infrastructure that's required, you know, one mistake people make is they add these jetted tubs and these huge showers, his and her sinks, and then they don't actually pony up for the plumping that's required to keep these things going. So, make sure you have the pipes. And if you do, you'll probably recoup your investment on something like that.

KAGAN: And good luck to all of the homeowners trying to build that dream home. A good problem to have, you know...

OTTER: Yes, exactly.

KAGAN: ... trying to think of all of the good stuff you want. Jack Otter, thank you, from "Smart Money" magazine. I appreciate that.

OTTER: Sure, thank you.

KAGAN: A different type of presidential stomping is taking place in Florida today. Presumptive Democratic nominee John Kerry on the left of your screen, and then as the camera zooms in just past, Joe Lieberman. At one point, these men were rivals and competitors. Now, Joe Lieberman in Florida trying to help John Kerry gather up more votes. More from Florida just ahead.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan at CNN Center in Atlanta. Let's check the headlines at this hour.

Homeland Security Secretary Tom Ridge wants to speed up plans to deal with any possible terrorist attack. This comes as the nation prepares for a high number off high profile events that could give terrorists a chance to strike. Officials say Ridge wants to form a new government task force to better coordinate public and private security.

Terror was the target today as police raided homes and apartments in Manchester, England. Ten people were arrested on a variety of terrorism connected charges. It's the second major anti-terror round up in Britain in less than a month.

This is the ninth anniversary of the Oklahoma City bombing which killed 168 people. A memorial service marked the moment today in Oklahoma City, and names of the victims are being read aloud, some of them by children of the victims.

These pictures from McAllister, Oklahoma, where bombing conspirator Terry Nichols is on trial for murder.

It's going to be a sweaty one in today's Boston Marathon, the temperature expected to hit 80 degrees. The marathon is off to a running start just moments from now. And for the first time in history, some of the women will leave the starting line before the men, nearly a half hour before.

McDonald's chairman and CEO, Jim Cantalupo, died this morning of an apparent heart attack in Orlando, Florida. He was 60 years old. Cantalupo's death is a loss both for his family and his company.

More now from our Lisa Leiter, who is reporting from Chicago -- Lisa.

LISA LEITER, CNN CORRESPONDENT: Daryn, well, Jim Cantalupo's sudden death, a shock to the company and to investors, as you mentioned.

Cantalupo, who was 60 years old, died while attending a franchisee convention in Orlando, Florida.

The company less than an hour ago announcing that president and chief operating officer Charlie Bell will take over as president and CEO, effective immediately.

But the company is making the chairman's job that Cantalupo held separate, assigning that role instead to Andrew McKenna, the board's current presiding director.

Now, the loss of a leader would be devastating for any company. But for McDonald's it comes at a critical time. Jim Cantalupo left retirement in early 2003 to take the helm of the world's largest restaurant chain after former CEO Jack Greenberg resigned under pressure.

Sales were falling, and the company recorded its first ever quarterly loss.

And while Cantalupo's career with McDonald's goes back 30 years, investors will likely remember him for the last 16 months, when, in the words of one analyst, he accomplished the impossible.

He took a company that used to focus on opening new stores and instead focused on improving the existing ones. As a result, sales turned around and rose in 11 out of the 15 months that Cantalupo was in office.

He helped set a standard for service. And he expanded the menu with entree salads and all white meat Chicken McNuggets. And he also launched the company's first ever global marketing campaign.

Now the question whether Charlie Bell will be able to carry on Cantalupo's successful strategy. One analyst told me there was concern whether Bell had enough experience with the McDonald's system to be ready for the top job. But others say the 43-year-old Bell has been groomed for the job and that, in a company as big as McDonald's, one person alone isn't making all the decisions.

And earlier today, news of Cantalupo's sudden death sent McDonald's stock down as much as a dollar, but it has since recovered slightly this morning -- Daryn.

KAGAN: Lisa, let's talk about image problems here. With all due respect of Cantalupo's family, of course, of losing their loved one, when you have a company that is struggling against images of obesity and being unhealthy and trying to fight against all the bad things being said about fast food, when the head of the company drops dead of a sudden heart attack, that is not good for the company.

LEITER: Absolutely not. And I think at this point, it just comes down to how much of a role Charlie Bell played in the turn around strategy and whether, you know, the attitude will sort of be, let's win one for Jim Cantalupo going forward and really trying to take what, you know, certainly has been a successful strategy over the last 16 months and carrying that forward now and trying to expand on some of the ideas that he put forth, like those entree salads that I mentioned and those all white meat Chicken McNuggets, more healthy offerings that clearly Americans are demanding right now.

KAGAN: Lisa Leiter in Chicago. Lisa, thank you.

Let's take a look now at some stories making headlines across America.

A hockey player facing charges in an alleged murder for hire scheme. A criminal complaint accuses Mike Danton of trying to hire someone to kill his male lover. Danton is a defenseman for the St. Louis Blues.

In Iowa, a non-alcoholic student festival turns into chaos. A rowdy crowd smashed store windows, pulled down light poles and turned over cars. The president of Iowa State University says the future of the festival is in question today.

The town of Auburn, Washington is proposing strict regulations for dogs weighing more than 30 pounds. Dogs that are considered dangerous would have to be kept inside or locked in a pen. They'd be required to wear muzzles when they're outside, and owners would be required to take out $250,000 in liability insurance.

A wilderness vacation doesn't have to mean giving up a little luxury if you have the bucks. If not, you can come along and dream a little bit. Still to come, destinations where you can enjoy the great outdoors with great comfort.

Plus, why Hollywood is heading to court over some new DVD players.

Also keeping our eye on Florida. John Kerry, you can see to the left of your screen there, making a campaign appearance. Joe Lieberman on hand to help him rally some support from Florida voters. That's just ahead.

(COMMERCIAL BREAK)

KAGAN: Let's go live now Lake Worth, Florida, presumptive Democratic nominee, John Kerry.

(INTERRUPTED BY LIVE EVENT)

KAGAN: We've been listening in to Senator John Kerry making a campaign stop in Lake Worth, Florida today, Senator Joe Lieberman by his side, looking for support from Florida voters.

President Bush, by the way, will be speaking later today. He'll be in Hershey, Pennsylvania, encouraging support for continuation of the Patriot Act.

Much more news ahead with Wolf Blitzer at the top of the hour. I'm Daryn Kagan, and I'll see you right here tomorrow morning.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired April 19, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Interest rates are still load. If you're looking to build your dream house, it's not too late. We're going to tell you which upgrades are actually worth the coast. And if you're looking to get out of the house, hear where to go this summer for some outdoor adventure and luxurious accommodations, as the second hour of CNN LIVE TODAY begins right now.
Cease-fire talks in Fallujah lead to agreements aimed at ending the violence in the Iraqi city. A spokesman for the U.S.-led coalition says all of the parties in the talks have called for illegal weapons to be turned in. The coalition says it does not plan to resume its offensive if heavy weapons are surrendered.

The CEO of McDonald's died suddenly today while attending a company convention in Florida. McDonald's says that Jim Cantalupo apparently suffered a heart attack this morning in Orlando. Cantalupo came out of retirement last January to take over as chairman and CEO of the fast-food giant. He was 60 years old.

In New York, an accident this morning involving a commuter train and an Amtrak train injured about 130 people. Witnesses say the Amtrak train struck a Long Island Railroad train from behind at Penn Station. All of the injuries appeared to be minor, mostly cuts and bruises.

It's 11:00 a.m. on the East Coast and 8:00 a.m. on the West Coast. From the CNN center in Atlanta, I'm Daryn Kagan. Good morning once again.

Up first this hour on CNN, fighting the war on terror here at home, as the nation prepares for a number of high-profile events. Homeland Security Secretary Tom Ridge wants to speed up plans to deal with any possible terrorist attack.

Our Sean Callebs joins us from Washington with details on that.

Good morning.

SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Daryn. You're exactly right.

A whole host of high-profile events have the director of homeland security concerned. Al Qaeda or other terrorists may have their sights set on specific U.S. targets in the next few months. In an effort to make sure the nation is on guard, the government wants to create a special task force to better coordinate public and private security.

Now, among the major gatherings and events coming up, the dedication of the World War II memorial over the Memorial Day weekend. Tom Ridge, homeland security secretary, is scheduled to unveil the plan in a matter of minutes, about 11:15, at the National Association of Broadcasters meeting in Las Vegas. His plans call for homeland security to join with eight cabinet-level positions to protect critical infrastructure.

Now, think about it. New York and Boston will be filled with representatives for the Republican and Democratic Conventions later on this summer. Authorities also point to large gatherings for the Independence Day and Labor Day holidays.

President Bush's national security advisor, Condoleezza Rice, is also worried al Qaeda could try and disrupt the general election this fall. Yesterday, she said -- quote: "I think we also have to take seriously that they might try, during that cycle" -- talking about the election -- "to do something. In some ways, it seems like it would be too good to pass up for them."

U.S. officials need only to think back to this sobering assault on March 11, right before the elections in Spain. Terrorists target the Madrid train system, killing nearly 200 people, wounding hundreds more. The ruling party was tossed out right after that, following to rival's urging Spanish troops to pull out of Iraq.

And once again, Daryn, Tom Ridge will be speaking in about 15 minutes, outlining what he wants to do in the future in terms of creating this task force, and that's coming up about 11:15 Eastern time.

KAGAN: Out of Las Vegas, I believe. In order to speed up this plan, what type of organizations or individuals outside the government does Tom Ridge expect his department to work with?

CALLEBS: Well, it's going to be a coordination with the government, the eight cabinet-levels authorities here in Washington. But they're going to be working with the private sector as well, working with industry. They're also working with governors of various states and also what they term the first responders to some kind of incident -- fire authorities, EMTs, things of that nature. And they're trying to get all of this hammered out as quickly as possible. Ridge says he is using the directives that he has from President Bush to do this.

KAGAN: Sean Callebs in Washington.

Speaking of President Bush, his administration is disputing details in a new account of the path to war in Iraq. The information raises questions about when the decision was made to go to war and who was in on that decision.

Our Elaine Quijano has more from Washington.

(BEGIN VIDEOTAPE) ELAINE QUIJANO, CNN CORRESPONDENT (voice-over): Less than three months after the September 11th attacks, President Bush told Defense Secretary Donald Rumsfeld to start drawing up plans for war in Iraq, according to Bob Woodward's new book, "Plan of Attack."

Woodward says after that meeting with Rumsfeld, the defense secretary gave General Tommy Franks the go-ahead for war preps.

BOB WOODWARD, "THE WASHINGTON POST": And so, he starts building runways and pipelines, and doing all of the preparations in Kuwait specifically to make war possible.

QUIJANO: Where did the money come from? According to Woodward, $700 million came from funds Congress had appropriated for the war in Afghanistan -- a move Woodward says happened without Congress knowing. But administration officials defend that action.

CONDOLEEZZA RICE, NATIONAL SECURITY ADVISOR: The secretary of defense, I am quite certain, would propose to the president things that he believes are inside his purview to do with the allocation that he gets from Congress.

QUIJANO: The book also describes a CIA briefing in December 2002 to President Bush on Iraq's weapons of mass destruction capability -- one of the main reasons for going to war. Woodward says the meeting left President Bush skeptical.

WOODWARD: The president, as he's inclined to do, says nice try, but that isn't going to sell Joe public. That isn't going to convince Joe public.

QUIJANO: Woodward says Tenet replied:

WOODWARD: Don't worry. It's slam dunk case.

QUIJANO: A U.S. official tells CNN Tenet believed what he was saying based on intelligence then.

(on camera): Sunday, National Security Advisor Condoleezza Rice appeared to deny another issue raised in the book that Saudi ambassador, Prince Bandar, knew of the Iraq war plan even before Secretary of State Colin Powell. Rice said that Powell was privy to all of this and knew what the war plan was.

Elaine Quijano, CNN, Washington.

(END VIDEOTAPE)

KAGAN: Well, the White House says that some of the events and conversations contained in Woodward's book were misinterpreted.

For more reaction, we're going to say good morning to our White House correspondent, Dana Bash, and go over some of the specific allegations made in this book.

Dana -- good morning. DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

And sort of the big picture here is that we, of course, should remember that the president himself did cooperate with Bob Woodward on this book. He gave an on-the-record interview, a long one, I think maybe more than one. And countless administration officials did speak to Bob Woodward on condition of anonymity.

So, senior officials here are saying by and large they think that this does portray what happened in the days, weeks, months, even now years leading up to the war in Iraq in an accurate way. But, as you said, there are some specific antidotes in here that they do not think actively -- or accurately, I should say, portray what happened.

One of the things that have come out is a charge by Woodward, an allegation, that the Saudi ambassador, Prince Bandar, who is very close to the president and very close to the Bush family made a deal, or at least made a promise, to the president and the White House that he would lower oil prices before the election.

Now, we just got a statement from Adel al-Jubier (ph). He is the foreign affairs advisor to the crown prince of Saudi Arabia. He says that it is natural for every administration to raise the issue of oil prices with the Saudis, but that this is something that their policy for the past 30 years has been to maintain balance, as he puts it, in the oil markets, to avoid disruptions or shortages.

Now, there is no direct response to the allegation that he made any election-year promises from the Saudis. As far as the White House is concerned, they're simply not going there, not characterizing any conversation at all, simply referring to the Saudi statements on this -- Daryn.

KAGAN: Dana, Bob Woodward has said he based this book -- as you said, he had the interviews from President Bush, but a number of unnamed administration officials. Yet, if you look at a lot of the morning papers today, it seems like people in Washington are just assuming that Secretary of State Colin Powell was a huge source and cooperated with this book, just if for no other reason he comes off looking so positive.

BASH: Well, as you can imagine, they're not going there on that one here either, Daryn. But, you know, you heard Bob Woodward asked about that on "60 Minutes" last night. He also wouldn't confirm that, as you mentioned. But there certainly is some talk behind the scenes here about what this means for the way the relationships will be from here on out between the secretary of state and particularly the vice president, because they are portrayed as really going at it, if you will, over the Iraq policy, and really as sort of not agreeing on that issue. That is something that will certainly play out behind closed doors here and perhaps in public as far as Colin Powell goes and the way his relationship is with the rest of the administration -- Daryn.

KAGAN: Dana Bash at the White House.

And this programming note for our viewers: Bob Woodward discusses the new allegations about the president and path to war on tonight on CNN's "LARRY KING LIVE." That's at 9:00 Eastern, 6:00 Pacific.

There appears to be new hope and efforts to end the siege in Fallujah. U.S. troops are no longer the only ones calling for insurgent to lay down their arms. We will tell you who is adding his voice and why it's important in a live update from Iraq.

Plus, are those marble countertops really worth it? How about the granite countertops in the kitchen? We have some financial advice for those of you thinking about building your dream home.

And, protecting your kids from offensive language on DVDs. The new options from two major retailers have Hollywood crying foul.

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(BUSINESS NEWS UPDATE)

KAGAN: Rocket and mortar attacks today in Baghdad, one rocket hitting the unoccupied Swedish embassy, and a mortar round hitting a house, killing a boy and his mother. The attacks follow another costly weekend for American troops in Iraq with a dozen added to the death toll. That toll now stands at 701 killed in the war, 506 of them from hostile action.

Our Jim Clancy is live in the capital with more -- Jim.

JIM CLANCY, CNN CORRESPONDENT: Well, Daryn, there has been some dramatic developments around the siege of Fallujah, a trouble spot town in the heart of the Sunni triangle just west here of the capital of Baghdad. U.S. officials, leading the coalition, have announced today that an agreement has been reached with some of the community and religious leaders, as well as the Iraqi Governing Council, in order to reach a negotiated settlement there in Fallujah.

The U.S. is making broad concessions to the insurgent there, to the city officials there in these talks and laying out the hope that they can keep their word for their side of the deal. Now, that includes a lot of things, including handing over foreign fighters, allowing joint patrols to go into that city and reestablish some kind of law and order there.

And another one of the key demands, of course: the handover of weapons.

(BEGIN VIDEO CLIP)

DAN SENOR, COALITION SPOKESMAN: The parties agree to call on citizens and groups to immediately turn in all illegal weapons -- illegal weapons defined as mortars, RPGs, machine guns, sniper rifles, ID-making materials, grenades and surface-to-air missiles and all associated ammunition. Those who give up their weapons voluntarily will not be prosecuted for weapons violations, and unarmed individuals will not be attacked.

(END VIDEO CLIP)

CLANCY: Daryn, a very important step by the coalition, as it was announced there, because Iraqis have been complaining that they do not really have any power right now, that when the sovereignty is handed over, they don't know how much power they're going to have. The U.S. moving here to empower the Iraqis to solve this problem. Of course, that's a very tall order. No one knows whether they can induce people to hand over weapons, induce people to turn in those foreign fighters and to get things back on even keel, back to normal there in Fallujah.

Meantime, a lot of concern in southern Iraq as well. Spanish forces there saying, of course, out of Madrid, they will be with drawing their 1,400 troops that are part of the coalition deployed around Najaf. Already signals that is being hailed by the leading troublemaker in the eyes of the U.S.-led coalition, Moqtada al-Sadr, as a victory of sorts. He ordered his illegal armed militia to halt all attacks on the Spanish forces.

Honduran government officials saying now they may withdraw their troops early, a lot of people seeing some cracks there in south- central Iraq. What it all means, how it could encourage the opposition to occupation here in Iraq still yet to be measured. It could be a trouble spot -- Daryn.

KAGAN: Jim Clancy with the latest from Baghdad.

Now, let's look at some late numbers here. At last count, 16 people from other nations are either missing in Iraq or being held hostage by kidnappers. One of the American hostages is Army Private Keith Matthew Maupin.

In Batavia, Ohio, Maupin's mother received a call yesterday from former POW Jessica Lynch and her mother, who offered their moral support.

The other known American hostage is Thomas Hamill, a civilian contractor from Macon, Mississippi. Civil rights leader Jesse Jackson says he will contact religious leaders in Iraq to try to get Hamill released.

A campus celebration gets out of hand. Hundreds of students and thousands of dollars in damages.

And, the death of a CEO. The man responsible for the new menu at McDonald's has died. We'll have a live report coming up. You're watching CNN LIVE TODAY.

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KAGAN: It is the latest trend in home improvement. More and more Americans are adding extras like granite kitchen counters. That would be granite kitchen counters, gourmet appliances and Jacuzzis.

Joining us from New York to talk about which perks offer the biggest payoff is Jack Otter. He is senior editor of "Smart Money" magazine. Jack, good morning. Thanks for being here with us.

JACK OTTER, "SMART MONEY" MAGAZINE: Hi, Daryn. Great to be here.

KAGAN: I saw kind of an alarming statistic, as I was going through the information today, that builders and mortgage brokers will try to tell you for every $1,000 you add onto your mortgage, oh, it's just an extra six bucks in your mortgage every month. Very dangerous.

OTTER: That is quite a sales pitch, isn't it? Of course, very few things, very few upgrades only cost $1,000. So, it's really, say, maybe $5,000. That's five times six. But, of course, you have to pay your mortgage every month. So, that's times 12. Times 30 if it's a 30-year mortgage. So, you're really looking at over $2,000 for every $1,000 in upgrades, and those can add up quickly.

KAGAN: Ah, got it. And, of course, you're not just talking about one upgrade. If you're in the market, you're going to do a lot of fancy stuff. Let's talk about what some of the best investments are. How about including a home office in your new dream home?

OTTER: That's a pretty good investment. The problem -- it's a trade-off. If you simply create that home office by adding more square footage onto your house, then you'll probably recoup that on the resale. However, if you convert, say, a bedroom into a home office because, you know, your elder daughter has gone off to college, well, then when somebody comes in to buy it, they have young children, and that's not so useful to them. They might have to spend money to reconvert that back to a bedroom.

So, the biggest bang for your buck is to actually add square footage, say by finishing a basement. But things like granite countertops that you mentioned or an island in your kitchen, those are becoming so popular that they are practically required. And so those certainly will add to the value of your home. And if you don't have them, buyers might hesitate.

KAGAN: The bar is being raised. Here's a fancy thing that I think sounds kind of attractive: an outdoor fireplace.

OTTER: Oh, well, those are beautiful. Of course, they're only useful in certain parts of the country. But they're also somewhat specialized. I mean, there are some people who would just look at that and say, well, we don't sit outside and enjoy the fire. So, it might not be...

KAGAN: Because they don't avenue the outdoor fireplace. That's why.

OTTER: Well, that's true. That's true. But they might find it an odd thing.

The real point is, if you are thinking of resale value, then you want to make sure that you're spending extra money on things that the vast majority of potential buyers will want. Now, there's nothing wrong with an outdoor fireplace or a wine cellar, but a smaller group of potential buyers is actually going to want those things. So, don't put your money there thinking that you are necessarily going to recoup it. But if you want it and you can afford it, of course, it's great.

KAGAN: Knock yourself out if you can write the check. How about adding a hot tub?

OTTER: Those are very popular. Kitchens and bathrooms tend to be sort of the most popular upgrades and the most demanded by buyers. So, as long as you remember the infrastructure that's required, you know, one mistake people make is they add these jetted tubs and these huge showers, his and her sinks, and then they don't actually pony up for the plumping that's required to keep these things going. So, make sure you have the pipes. And if you do, you'll probably recoup your investment on something like that.

KAGAN: And good luck to all of the homeowners trying to build that dream home. A good problem to have, you know...

OTTER: Yes, exactly.

KAGAN: ... trying to think of all of the good stuff you want. Jack Otter, thank you, from "Smart Money" magazine. I appreciate that.

OTTER: Sure, thank you.

KAGAN: A different type of presidential stomping is taking place in Florida today. Presumptive Democratic nominee John Kerry on the left of your screen, and then as the camera zooms in just past, Joe Lieberman. At one point, these men were rivals and competitors. Now, Joe Lieberman in Florida trying to help John Kerry gather up more votes. More from Florida just ahead.

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KAGAN: I'm Daryn Kagan at CNN Center in Atlanta. Let's check the headlines at this hour.

Homeland Security Secretary Tom Ridge wants to speed up plans to deal with any possible terrorist attack. This comes as the nation prepares for a high number off high profile events that could give terrorists a chance to strike. Officials say Ridge wants to form a new government task force to better coordinate public and private security.

Terror was the target today as police raided homes and apartments in Manchester, England. Ten people were arrested on a variety of terrorism connected charges. It's the second major anti-terror round up in Britain in less than a month.

This is the ninth anniversary of the Oklahoma City bombing which killed 168 people. A memorial service marked the moment today in Oklahoma City, and names of the victims are being read aloud, some of them by children of the victims.

These pictures from McAllister, Oklahoma, where bombing conspirator Terry Nichols is on trial for murder.

It's going to be a sweaty one in today's Boston Marathon, the temperature expected to hit 80 degrees. The marathon is off to a running start just moments from now. And for the first time in history, some of the women will leave the starting line before the men, nearly a half hour before.

McDonald's chairman and CEO, Jim Cantalupo, died this morning of an apparent heart attack in Orlando, Florida. He was 60 years old. Cantalupo's death is a loss both for his family and his company.

More now from our Lisa Leiter, who is reporting from Chicago -- Lisa.

LISA LEITER, CNN CORRESPONDENT: Daryn, well, Jim Cantalupo's sudden death, a shock to the company and to investors, as you mentioned.

Cantalupo, who was 60 years old, died while attending a franchisee convention in Orlando, Florida.

The company less than an hour ago announcing that president and chief operating officer Charlie Bell will take over as president and CEO, effective immediately.

But the company is making the chairman's job that Cantalupo held separate, assigning that role instead to Andrew McKenna, the board's current presiding director.

Now, the loss of a leader would be devastating for any company. But for McDonald's it comes at a critical time. Jim Cantalupo left retirement in early 2003 to take the helm of the world's largest restaurant chain after former CEO Jack Greenberg resigned under pressure.

Sales were falling, and the company recorded its first ever quarterly loss.

And while Cantalupo's career with McDonald's goes back 30 years, investors will likely remember him for the last 16 months, when, in the words of one analyst, he accomplished the impossible.

He took a company that used to focus on opening new stores and instead focused on improving the existing ones. As a result, sales turned around and rose in 11 out of the 15 months that Cantalupo was in office.

He helped set a standard for service. And he expanded the menu with entree salads and all white meat Chicken McNuggets. And he also launched the company's first ever global marketing campaign.

Now the question whether Charlie Bell will be able to carry on Cantalupo's successful strategy. One analyst told me there was concern whether Bell had enough experience with the McDonald's system to be ready for the top job. But others say the 43-year-old Bell has been groomed for the job and that, in a company as big as McDonald's, one person alone isn't making all the decisions.

And earlier today, news of Cantalupo's sudden death sent McDonald's stock down as much as a dollar, but it has since recovered slightly this morning -- Daryn.

KAGAN: Lisa, let's talk about image problems here. With all due respect of Cantalupo's family, of course, of losing their loved one, when you have a company that is struggling against images of obesity and being unhealthy and trying to fight against all the bad things being said about fast food, when the head of the company drops dead of a sudden heart attack, that is not good for the company.

LEITER: Absolutely not. And I think at this point, it just comes down to how much of a role Charlie Bell played in the turn around strategy and whether, you know, the attitude will sort of be, let's win one for Jim Cantalupo going forward and really trying to take what, you know, certainly has been a successful strategy over the last 16 months and carrying that forward now and trying to expand on some of the ideas that he put forth, like those entree salads that I mentioned and those all white meat Chicken McNuggets, more healthy offerings that clearly Americans are demanding right now.

KAGAN: Lisa Leiter in Chicago. Lisa, thank you.

Let's take a look now at some stories making headlines across America.

A hockey player facing charges in an alleged murder for hire scheme. A criminal complaint accuses Mike Danton of trying to hire someone to kill his male lover. Danton is a defenseman for the St. Louis Blues.

In Iowa, a non-alcoholic student festival turns into chaos. A rowdy crowd smashed store windows, pulled down light poles and turned over cars. The president of Iowa State University says the future of the festival is in question today.

The town of Auburn, Washington is proposing strict regulations for dogs weighing more than 30 pounds. Dogs that are considered dangerous would have to be kept inside or locked in a pen. They'd be required to wear muzzles when they're outside, and owners would be required to take out $250,000 in liability insurance.

A wilderness vacation doesn't have to mean giving up a little luxury if you have the bucks. If not, you can come along and dream a little bit. Still to come, destinations where you can enjoy the great outdoors with great comfort.

Plus, why Hollywood is heading to court over some new DVD players.

Also keeping our eye on Florida. John Kerry, you can see to the left of your screen there, making a campaign appearance. Joe Lieberman on hand to help him rally some support from Florida voters. That's just ahead.

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KAGAN: Let's go live now Lake Worth, Florida, presumptive Democratic nominee, John Kerry.

(INTERRUPTED BY LIVE EVENT)

KAGAN: We've been listening in to Senator John Kerry making a campaign stop in Lake Worth, Florida today, Senator Joe Lieberman by his side, looking for support from Florida voters.

President Bush, by the way, will be speaking later today. He'll be in Hershey, Pennsylvania, encouraging support for continuation of the Patriot Act.

Much more news ahead with Wolf Blitzer at the top of the hour. I'm Daryn Kagan, and I'll see you right here tomorrow morning.

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