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CNN Live Today

Democrats Unlikely to Go Hog Wild Against CIA Director Nomination

Aired August 10, 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: An Islamic Web site says that a group linked to al Qaeda has claimed responsibility and warned of more attacks in Europe.
The retrial opened today in Germany for the only person ever convicted in connection with the September 11th attacks. And the U.S. is pledging to provide evidence in the case against Mounir F. al- Motassadek. His is accused of helping three of the 9/11 hijackers.

His conviction was overturned because the U.S. refused to provide access to a terror suspect now in custody.

The national hurricane center is about to release an update on tropical storm Bonnie. Last check showed the storm was gathering steam in the Gulf of Mexico about 390 miles from land. Meteorologist Jacqui Jeras will have an update before the half hour.

We are keeping you informed, CNN is the most trusted name in news.

Up first, let's take a time check. 11:00 a.m. on the East Coast, 8:00 a.m. on the West. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

Up first this hour on CNN, the president's pick to head the CIA -- Republican congressman, Porter Goss, of Florida.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Porter Goss is a leader with strong experience in intelligence and in the fight against terrorism. He knows the CIA inside and out. He's the right man to lead this important agency at this critical moment in our nation's history.

(END VIDEO CLIP)

KAGAN: Goss is a former Army intelligence operative and chairman of the House intelligence select committee.

Our congressional correspondent Ed Henry is on Capitol Hill with more on that nomination.

Ed, good morning.

ED HENRY, CNN CORRESPONDENT: Good morning, Daryn. In fact, as you know, Congress is officially adjourned right now, at least in recess for the summer, but there have been ongoing hearings on the 9/11 commission's recommendations.

And an aide to Senate intelligence chairman, Pat Roberts, said that committee is now exploring whether or not they should get together in August or whether they wait until September in order to get going on this nomination.

Chairman Roberts wants to make sure they deal with it in a quick fashion and make sure they carefully deliberate. A lot of Democrats also coming forward with reaction now.

One interesting note, Democratic Senator Bob Graham, the former chairman of the intelligence committee is actually applauding this nomination in part, perhaps, Porter Goss is a fellow Floridian. But Mr. Graham is pointing out that right now at the heightened state of alert that we're all under, especially in New York and Washington, D.C., he thinks it would be a bad time for the CIA to not go with ongoing leadership, to have a strong head at the top of that agency. So Senator Graham saying that he very much supports the nomination of Porter Goss.

Other democrats like Congressman Bob Matsui, chairman of the Democratic congressional campaign committee, saying he is perplexed by the nomination. He thinks Porter Goss is too political.

Another very important voice in all of this will be Senator Jay Rockefeller, the Democrat from West Virginia. He is the vice chair, the ranking member of the Senate intelligence committee. He is going to obviously have a major voice in all of this.

And this morning, he is putting out a statement saying that in general he has expressed concerns over the last month that no politician should be running the CIA. And that it is a bad idea to inject politics in this.

But the statement is saying this morning that Mr. Rockefeller is "disappointed" about this nomination. And also, "We need someone who is objective and independent to run the CIA."

But in fact, Mr. Rockefeller is not saying whether or not he will directly oppose the nomination. He is saying he has concerns. He will have tough questions. But he's saying he will make sure that Mr. Goss has a fair hearing.

Also want to point out that while all of this is taking place, this rollout of the nomination of Goss, the 9/11 recommendations are still being considered. In fact, Tom Kean, Lee Hamilton, the co- chairs of the 9/11 commission, they have been meeting this morning with the House democratic caucus talking about why they think there should be quick reform, why their 41 recommendations should be implemented.

And then this afternoon at about noon, one hour from now, Eastern time, Mr. Kean and Mr. Hamilton will be testifying before the House arms services committee, Daryn.

KAGAN: All right. A couple of, Ed Henry, questions for you.

First of all, we've heard plenty from you this morning about how the Democrats, many Democrats, might not be happy about it. Who would be happy about this nomination? Who does this suggestion please, Ed?

HENRY: It certainly pleases Republicans. I can tell you a lot of people like Senator Susan Collins, who's leading the hearings on the Senate side into these 9/11 recommendations, she's pointing out that she believes this is very good, that this was a wise decision by the president because some Republicans are pointing out that they believe Mr. Goss, as a former CIA official, is the right person.

He knows it inside and out, as the president said in the rose garden earlier today. And a lot of Republicans are applauding this because they think he's the right man to clean up the CIA, Daryn.

KAGAN: All right. Ed, you make some interesting points, or you bring up some interesting points that the Democrats are raising, but do the Democrats in the Senate have the power to block this nomination?

HENRY: If the Democrats can rally enough votes to block the nomination, certainly they do have the power within the chamber to block the nomination. But I can tell you that the early indications I'm getting from some Democratic staffers in the Senate is that they feel that it might be a mistake for Democrats to go hog wild against this nomination at a time when, as Democratic Senator Bob Graham pointed out, we're under a heightened state of alert.

There's some nervousness among Democrats that if it looks like they're obstructing the nomination of the new director of the CIA and the, God forbid, there is a terrorist attack, politically that could really backfire on the Democrats.

So, so far the early indications we're getting is that Democrats are going to ask tough questions but they may not block it -- Daryn?

KAGAN: Ed Henry on Capitol Hill, thank you.

HENRY: Thank you.

KAGAN: Democratic Senator Charles Schumer of New York wants to know how Goss fits into recommendations for intelligence reform? Schumer was a guest on CNN's AMERICAN MORNING.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: I served with him in the House. He's a fine guy. He cares about intelligence services. I like him. But I think there are going to be some real questions here.

Many of us were very troubled when the president sort of gave a lukewarm endorsement to the 9/11 commission's recommendation that the director of national intelligence have full budgetary and hiring authority. If you don't have that, you're a toothless tiger.

(END VIDEO CLIP)

KAGAN: Schumer says the key question is whether Goss will go along with the 9/11 panel's recommendations.

Well, this might look like a tourist home movie, but it's very serious. Federal investigators found this video of three Las Vegas hotels in the apartment of a suspected Detroit terror cell.

Footage of the same hotels was discovered in the hands of a Spanish al Qaeda cell. That was back in 2002 and no one ever told the public.

The justice department says city officials were worried about the effects on tourism. The mayor of Las Vegas today denies that.

(BEGIN VIDEO CLIP)

MAYOR OSCAR GOODMAN, LAS VEGAS, NEVADA: I was never asked by anybody with the federal authorities to look at any tapes. As a matter of fact, I never even saw the tape on TV that people are talking about. I never heard the tape being discussed by anybody. No one's ever asked for a meeting with me that had to do with our security in this community where I didn't drop everything and meet with them and then tell the public exactly what the meeting was about.

(END VIDEO CLIP)

KAGAN: The tape focused on the MGM Grand, the Excalibur and New York, New York casinos.

Other terrorism related news today, two mosque leaders arrested in an FBI sting operation find out today whether they have to stay in jail. Authorities raided the Albany, New York mosque last week and arrested the suspects. An indictment accuses them of conspiring in a money laundering scheme tied to a fake terrorist plot. The lawyer for one of the men says the case is based on government fabrication.

Federal officials are tightening security at New York heliports because of concerns about a possible al Qaeda plot there. The transportation security administration will take over passenger screening this week. And other security measures are being put in place.

The changes are in response to a government warning. Officials say alleged al Qaeda terrorists may have been plotting to use helicopters to carry out attacks.

Recent intelligence is shedding new light on the inner workings of al Qaeda. Today's "New York Times" says that investigators are beginning to identify a new generation of al Qaeda operatives.

The paper says the upper ranks are now being filled by lower- ranking members and more recent recruits. And there's evidence that al Qaeda has retained some elements of its command and communication structure.

Police are investigating the details of a deadly day in Turkey. Two people are dead after two powerful blasts rocked three sites in Istanbul, and an Islamic Web site says a group linked to al Qaeda is claiming responsibility.

Here's CNN's Alphonso Van Marsh in the Turkish capital.

(BEGIN VIDEOTAPE)

ALPHONSO VAN MARSH, CNN INTERNATIONAL CORRESPONDENT: Turkish authorities say they aren't ruling out any possibilities as to who might be responsible for a series of bomb blasts that rocked Istanbul.

This hotel behind me is one of two hotel properties targeted between Monday night into early Tuesday morning.

(voice-over) Turkish authorities say that in the blast two people died, and at least half a dozen other people were injured.

A little bit outside the city, two more bomb blasts at a liquefied fuel refueling station. A company spokesman saying that while the blasts went off, there was very little damage.

(on camera) Now the blasts come at a very sensitive time for Turkey. This is Turkey's high tourist season, plenty of people from plenty of different countries and towns. And Turks are very sensitive about allegations of terror in their country.

Some viewers might remember last November. Four suicide car bombs killing some 60 people including the British consulate to Istanbul. But in terms of who might be responsible for this series of bomb blasts, Turkish authorities say it could be anyone.

Alphonso Van Marsh, CNN, Istanbul.

(END VIDEOTAPE)

KAGAN: She is the other woman and some say the prosecution's star witness in Scott Peterson's double murder trial. Amber Frey takes the stand today.

Our Rusty Dornin is at the courthouse in Redwood City, California.

Rusty, good morning.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Daryn, we understand that Amber Frey is on her way at this moment to the courthouse. But we don't expect to see her come through the front door here. She's going to be kept under very tight wraps, brought in through the underground garage, taken up to the court and also exit that same way.

The only pictures we may get of her could be courthouse -- or courtroom -- sketches. She's only spoken twice publicly, and she's never answered any questions from reporters. But in court today, she'll have to answer a lot of questions and she has a tale to tell.

(BEGIN VIDEOTAPE)

DORNIN (voice-over): A full-scale Amber alert here in Redwood City. Amber Frey, Scott Peterson's former mistress, is expected to finally take the stand today. Her father says she's ready.

RON FREY, AMBER FREY'S FATHER: She's 100 percent prepared, and she'll be able to deal with questions from the defense attorney, Mr. Geragos -- not a problem.

DORNIN: She's billed as the prosecution's star witness. Some legal experts say her testimony along with tapes of her phone conversations with Peterson, in which he tells lie after lie, will be powerful evidence.

GLORIA ALLRED, AMBER FREY'S ATTORNEY: The prosecution can argue that there is a motive for murder. And we will see how Scott Peterson wormed his way into her life and into her heart.

DORNIN: But others caution Frey's testimony could fall flat and simply pinpoint Scott Peterson as a cad, something the defense has already admitted to the jury.

Frey's scheduled appearance has nearly overshadowed the defense claim that it's found new evidence that could potentially exonerate Peterson. The court suspended the trial abruptly last Thursday after Mark Geragos announced the discovery.

A source close to the case says the discovery relates to a plastic tarp found near Laci Peterson's body. Local police said the tarp smelled like there had been a decomposing body inside. It's now being tested.

No word on whether the court will discuss the results of tests conducted on that tarp.

(END VIDEOTAPE)

DORNIN: At least not in open court, it's likely that both sides will go back in a closed session when it begins at 9:00 a.m. local time. And then after that is completed, we are expecting Amber Frey to take the stand -- Daryn?

KAGAN: And Rusty, some people are suggesting that this testimony could go on for two to three weeks with Amber Frey on the stand?

DORNIN: That's right. Even her own attorney, Gloria Allred, is saying she will be up there a considerable amount of time. And remember, there's only three days of court this week. They only go through Thursday, so it's Tuesday, Wednesday, Thursday. Next week is four days. We are expecting it to probably go through the end of next week.

KAGAN: All right. Rusty Dornin, Redwood City, more from you later. Thank you.

Accused wife killer, Mark Hacking is scheduled to make a court appearance by video hookup this hour. According to court documents filed by Salt Lake City prosecutors, Hacking admitted he killed his wife Lori with a rifle while she was sleeping.

Prosecutors contend the Hackings argued after he admitted to her that he lied about his acceptance to medical school. Lori Hacking's body has not been found, but it's thought to be somewhere in the Salt Lake City landfill.

The fighting in Najaf rages with no end in sight. As U.S. forces move in, the battlefield shifts to an ironic location. The very latest is up next.

Also for a U.S. diplomat, the training is anything but ordinary, but the same is true for the assignment. Preparing for the dangers of Baghdad ahead.

And later, he's fired -- financial trouble and a major shake up for Donald Trump.

CNN LIVE TODAY is coming right back.

(COMMERCIAL BREAK)

RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: I'm Rhonda Schaffler at the New York Stock Exchange. Reports showing business productivity rose 2.9 percent in the second quarter, beating expectations has some investors feeling rather bullish.

Stocks broadly higher, but the enthusiasm somewhat being roped in as investors await the Federal Reserve's decision on interest rates.

The Dow ahead of that, up 71 points. The Nasdaq is 1 percent higher.

Economists widely expect Alan Greenspan and fed officials to raise the fed's key rate by a quarter point to 1.5 percent. But some fed watchers believe recent disappointing economic data and the upcoming election may make this the last rate hike for some time.

That's the latest news from Wall Street. CNN's LIVE TODAY continues in just a moment.

(COMMERCIAL BREAK)

KAGAN: Sporadic fighting today in the poor Baghdad neighborhood known as Sadr City. Messages from mosque loudspeakers called on Sadr City residents to arm themselves.

Also a militant group issued a taped video statement threatening attacks on Iraqi government institutions.

And to the south, gunfire in Najaf, U.S. Marines are battling fighters loyal to radical cleric Muqtada Al-Sadr. It's happening again today.

American forces are sweeping a vast cemetery for insurgents using tanks and helicopters. The graveyard is filled with caves and multistory mausoleum-type buildings and other hiding spots.

A large explosion rocks central Baghdad today as a U.S. military convoy passed through the area. Two soldiers were slightly injured.

Like U.S. troops, American diplomats headed to Iraq are getting some specialized training. Here now is our state department correspondent, Andrea Koppel.

(BEGIN VIDEOTAPE)

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): The green pastures of West Virginia are a world away from the dusty streets of Baghdad. But it's here that hundreds of American diplomats and other federal workers are learning some of the skills they'll need to survive in what's considered the most dangerous diplomatic post in the world.

UNIDENTIFIED MALE INSTRUCTOR: That's going to be the primary area where I'm going to stick my mirror and/or, preferably my body.

KOPPEL: Instructors from the state department's bureau of diplomatic security show students that anything from a suitcase to a cigar box can be used to hide explosives, the kind of explosives that have killed so many people in Iraq.

Look at the effect on this car from only one stick of dynamite.

NANCY PILON, PROTOCOL OFFICER: To hear the sound and actually feel it, and your heart rate starts pumping and it's amazing.

KOPPEL: 42-year-old Nancy Pilon, a protocol officer at the state department is among a small army of American diplomats who volunteered to leave the comforts of home for at least the next six months to work at the new U.S. embassy in Baghdad.

PILON: I think it's important to go there and put a face on the administration hopefully. And I'm looking forward to it.

KOPPEL: 31-year-old Ryan Stiles says he'll be working with Iraqis to help build democratic institutions.

RYAN STILES, COUNTERTERRORISM OFFICIAL: I was doing counterterrorism and homeland security from behind a desk prior to this. And I wanted to get more on the front line.

KOPPEL: 59-year-old Stuart Foote, an auditor for the U.S. Air Force in Ohio is leaving his wife and grown children to help track how Iraqi oil money and U.S. taxpayer funds are spent.

STUART FOOTE, AIR FORCE AUDITOR: This is where the work is. This is where the need is. I didn't go, there would be somebody in a green uniform maybe doing what I'm doing, and there's no reason for that. I'm qualified to do it. And they've set up this opportunity and I'm happy to take advantage of it.

KOPPEL: But before they leave for duty in Iraq, they first have to complete this mandatory week-long course. For some, including Nancy Pilon, that means learning to fire an AK-47 and other weapons for the first time.

(on camera) The philosophy behind this course is essentially the best offense is a good defense. And so while most of these men and women won't actually carry a weapon in Iraq, they'll know how to use one if they ever need to.

FRANK TAYLOR, DIPLOMATIC SECURITY OFFICER: The diplomats are the first line of defense of our nation. They serve in harm's way, and it's our obligation to make sure that when we ask them to go serve their nation that they're the best prepared.

UNIDENTIFIED FEMALE INSTRUCTOR: Anybody in here ever experience shock?

KOPPEL (voice-over): That means as part of their training, students also learn first aid, what to do if the worst happens.

PAULA WINKLE, VICTIM: I obviously didn't sustain a direct hit or else it would have been severed.

KOPPEL: Paula Winkle says she is living proof the training can save lives and limbs.

Last October she was staying in Baghdad's Al-Rashid hotel when it came under rocket attack. One landed in Paula's room. Twelve surgeries later, she has lost two inches of bone and a lot of muscle, but she still considers herself lucky.

WINKLE: Kind of like a wakeup call, you know. If I hadn't had the training, they're not real sure what would have happened.

KOPPEL: Only a few of the 550 students who have been through the training so far have opted not to go to Baghdad. It's a measure of just how important Iraq is to the United States that these men and women are going at all.

If there were similar dangers in any other country, state department officials say, the U.S. would be ordering its diplomats to leave.

(END VIDEOTAPE)

KAGAN: Well, that's our Andrea Koppel reporting on some jobs that are very challenging. The question for you is, how challenging is your job?

If you say it's not, believe it or not, that very fact could lead to some real challenges later in life.

And later, how one video game is killing the competition while breathing new life into the computer industry. "Doom 3" takes aim. That's coming up.

(COMMERCIAL BREAK)

KAGAN: We are talking Bonnie, but there's not much lovely about her -- not like our lovely Jacqui Jeras who's tracking the tropical storm.

Good morning.

JACQUI JERAS, CNN METEOROLOGIST: Good morning, Daryn.

Yes, we have a brand new update on Bonnie and Charlie both.

(WEATHER BREAK)

JERAS: Daryn?

KAGAN: Yes, quick question, Jacqui.

JERAS: Yes.

KAGAN: How common to have two storms turning out there at the same time?

JERAS: Pretty common, yes. You start to see them lining up this time of the year.

KAGAN: All right. Get in line, just stay there and behave yourself.

JERAS: Yes.

KAGAN: Jacqui, thank you.

Coming up, the war over the war, how President Bush wants to use John Kerry's own vote on Iraq against him, but will it backfire?

The morning's most complete political wrap up is up next.

(COMMERCIAL BREAK)

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Aired August 10, 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: An Islamic Web site says that a group linked to al Qaeda has claimed responsibility and warned of more attacks in Europe.
The retrial opened today in Germany for the only person ever convicted in connection with the September 11th attacks. And the U.S. is pledging to provide evidence in the case against Mounir F. al- Motassadek. His is accused of helping three of the 9/11 hijackers.

His conviction was overturned because the U.S. refused to provide access to a terror suspect now in custody.

The national hurricane center is about to release an update on tropical storm Bonnie. Last check showed the storm was gathering steam in the Gulf of Mexico about 390 miles from land. Meteorologist Jacqui Jeras will have an update before the half hour.

We are keeping you informed, CNN is the most trusted name in news.

Up first, let's take a time check. 11:00 a.m. on the East Coast, 8:00 a.m. on the West. From CNN Center in Atlanta, good morning once again. I'm Daryn Kagan.

Up first this hour on CNN, the president's pick to head the CIA -- Republican congressman, Porter Goss, of Florida.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Porter Goss is a leader with strong experience in intelligence and in the fight against terrorism. He knows the CIA inside and out. He's the right man to lead this important agency at this critical moment in our nation's history.

(END VIDEO CLIP)

KAGAN: Goss is a former Army intelligence operative and chairman of the House intelligence select committee.

Our congressional correspondent Ed Henry is on Capitol Hill with more on that nomination.

Ed, good morning.

ED HENRY, CNN CORRESPONDENT: Good morning, Daryn. In fact, as you know, Congress is officially adjourned right now, at least in recess for the summer, but there have been ongoing hearings on the 9/11 commission's recommendations.

And an aide to Senate intelligence chairman, Pat Roberts, said that committee is now exploring whether or not they should get together in August or whether they wait until September in order to get going on this nomination.

Chairman Roberts wants to make sure they deal with it in a quick fashion and make sure they carefully deliberate. A lot of Democrats also coming forward with reaction now.

One interesting note, Democratic Senator Bob Graham, the former chairman of the intelligence committee is actually applauding this nomination in part, perhaps, Porter Goss is a fellow Floridian. But Mr. Graham is pointing out that right now at the heightened state of alert that we're all under, especially in New York and Washington, D.C., he thinks it would be a bad time for the CIA to not go with ongoing leadership, to have a strong head at the top of that agency. So Senator Graham saying that he very much supports the nomination of Porter Goss.

Other democrats like Congressman Bob Matsui, chairman of the Democratic congressional campaign committee, saying he is perplexed by the nomination. He thinks Porter Goss is too political.

Another very important voice in all of this will be Senator Jay Rockefeller, the Democrat from West Virginia. He is the vice chair, the ranking member of the Senate intelligence committee. He is going to obviously have a major voice in all of this.

And this morning, he is putting out a statement saying that in general he has expressed concerns over the last month that no politician should be running the CIA. And that it is a bad idea to inject politics in this.

But the statement is saying this morning that Mr. Rockefeller is "disappointed" about this nomination. And also, "We need someone who is objective and independent to run the CIA."

But in fact, Mr. Rockefeller is not saying whether or not he will directly oppose the nomination. He is saying he has concerns. He will have tough questions. But he's saying he will make sure that Mr. Goss has a fair hearing.

Also want to point out that while all of this is taking place, this rollout of the nomination of Goss, the 9/11 recommendations are still being considered. In fact, Tom Kean, Lee Hamilton, the co- chairs of the 9/11 commission, they have been meeting this morning with the House democratic caucus talking about why they think there should be quick reform, why their 41 recommendations should be implemented.

And then this afternoon at about noon, one hour from now, Eastern time, Mr. Kean and Mr. Hamilton will be testifying before the House arms services committee, Daryn.

KAGAN: All right. A couple of, Ed Henry, questions for you.

First of all, we've heard plenty from you this morning about how the Democrats, many Democrats, might not be happy about it. Who would be happy about this nomination? Who does this suggestion please, Ed?

HENRY: It certainly pleases Republicans. I can tell you a lot of people like Senator Susan Collins, who's leading the hearings on the Senate side into these 9/11 recommendations, she's pointing out that she believes this is very good, that this was a wise decision by the president because some Republicans are pointing out that they believe Mr. Goss, as a former CIA official, is the right person.

He knows it inside and out, as the president said in the rose garden earlier today. And a lot of Republicans are applauding this because they think he's the right man to clean up the CIA, Daryn.

KAGAN: All right. Ed, you make some interesting points, or you bring up some interesting points that the Democrats are raising, but do the Democrats in the Senate have the power to block this nomination?

HENRY: If the Democrats can rally enough votes to block the nomination, certainly they do have the power within the chamber to block the nomination. But I can tell you that the early indications I'm getting from some Democratic staffers in the Senate is that they feel that it might be a mistake for Democrats to go hog wild against this nomination at a time when, as Democratic Senator Bob Graham pointed out, we're under a heightened state of alert.

There's some nervousness among Democrats that if it looks like they're obstructing the nomination of the new director of the CIA and the, God forbid, there is a terrorist attack, politically that could really backfire on the Democrats.

So, so far the early indications we're getting is that Democrats are going to ask tough questions but they may not block it -- Daryn?

KAGAN: Ed Henry on Capitol Hill, thank you.

HENRY: Thank you.

KAGAN: Democratic Senator Charles Schumer of New York wants to know how Goss fits into recommendations for intelligence reform? Schumer was a guest on CNN's AMERICAN MORNING.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: I served with him in the House. He's a fine guy. He cares about intelligence services. I like him. But I think there are going to be some real questions here.

Many of us were very troubled when the president sort of gave a lukewarm endorsement to the 9/11 commission's recommendation that the director of national intelligence have full budgetary and hiring authority. If you don't have that, you're a toothless tiger.

(END VIDEO CLIP)

KAGAN: Schumer says the key question is whether Goss will go along with the 9/11 panel's recommendations.

Well, this might look like a tourist home movie, but it's very serious. Federal investigators found this video of three Las Vegas hotels in the apartment of a suspected Detroit terror cell.

Footage of the same hotels was discovered in the hands of a Spanish al Qaeda cell. That was back in 2002 and no one ever told the public.

The justice department says city officials were worried about the effects on tourism. The mayor of Las Vegas today denies that.

(BEGIN VIDEO CLIP)

MAYOR OSCAR GOODMAN, LAS VEGAS, NEVADA: I was never asked by anybody with the federal authorities to look at any tapes. As a matter of fact, I never even saw the tape on TV that people are talking about. I never heard the tape being discussed by anybody. No one's ever asked for a meeting with me that had to do with our security in this community where I didn't drop everything and meet with them and then tell the public exactly what the meeting was about.

(END VIDEO CLIP)

KAGAN: The tape focused on the MGM Grand, the Excalibur and New York, New York casinos.

Other terrorism related news today, two mosque leaders arrested in an FBI sting operation find out today whether they have to stay in jail. Authorities raided the Albany, New York mosque last week and arrested the suspects. An indictment accuses them of conspiring in a money laundering scheme tied to a fake terrorist plot. The lawyer for one of the men says the case is based on government fabrication.

Federal officials are tightening security at New York heliports because of concerns about a possible al Qaeda plot there. The transportation security administration will take over passenger screening this week. And other security measures are being put in place.

The changes are in response to a government warning. Officials say alleged al Qaeda terrorists may have been plotting to use helicopters to carry out attacks.

Recent intelligence is shedding new light on the inner workings of al Qaeda. Today's "New York Times" says that investigators are beginning to identify a new generation of al Qaeda operatives.

The paper says the upper ranks are now being filled by lower- ranking members and more recent recruits. And there's evidence that al Qaeda has retained some elements of its command and communication structure.

Police are investigating the details of a deadly day in Turkey. Two people are dead after two powerful blasts rocked three sites in Istanbul, and an Islamic Web site says a group linked to al Qaeda is claiming responsibility.

Here's CNN's Alphonso Van Marsh in the Turkish capital.

(BEGIN VIDEOTAPE)

ALPHONSO VAN MARSH, CNN INTERNATIONAL CORRESPONDENT: Turkish authorities say they aren't ruling out any possibilities as to who might be responsible for a series of bomb blasts that rocked Istanbul.

This hotel behind me is one of two hotel properties targeted between Monday night into early Tuesday morning.

(voice-over) Turkish authorities say that in the blast two people died, and at least half a dozen other people were injured.

A little bit outside the city, two more bomb blasts at a liquefied fuel refueling station. A company spokesman saying that while the blasts went off, there was very little damage.

(on camera) Now the blasts come at a very sensitive time for Turkey. This is Turkey's high tourist season, plenty of people from plenty of different countries and towns. And Turks are very sensitive about allegations of terror in their country.

Some viewers might remember last November. Four suicide car bombs killing some 60 people including the British consulate to Istanbul. But in terms of who might be responsible for this series of bomb blasts, Turkish authorities say it could be anyone.

Alphonso Van Marsh, CNN, Istanbul.

(END VIDEOTAPE)

KAGAN: She is the other woman and some say the prosecution's star witness in Scott Peterson's double murder trial. Amber Frey takes the stand today.

Our Rusty Dornin is at the courthouse in Redwood City, California.

Rusty, good morning.

RUSTY DORNIN, CNN CORRESPONDENT: Well, Daryn, we understand that Amber Frey is on her way at this moment to the courthouse. But we don't expect to see her come through the front door here. She's going to be kept under very tight wraps, brought in through the underground garage, taken up to the court and also exit that same way.

The only pictures we may get of her could be courthouse -- or courtroom -- sketches. She's only spoken twice publicly, and she's never answered any questions from reporters. But in court today, she'll have to answer a lot of questions and she has a tale to tell.

(BEGIN VIDEOTAPE)

DORNIN (voice-over): A full-scale Amber alert here in Redwood City. Amber Frey, Scott Peterson's former mistress, is expected to finally take the stand today. Her father says she's ready.

RON FREY, AMBER FREY'S FATHER: She's 100 percent prepared, and she'll be able to deal with questions from the defense attorney, Mr. Geragos -- not a problem.

DORNIN: She's billed as the prosecution's star witness. Some legal experts say her testimony along with tapes of her phone conversations with Peterson, in which he tells lie after lie, will be powerful evidence.

GLORIA ALLRED, AMBER FREY'S ATTORNEY: The prosecution can argue that there is a motive for murder. And we will see how Scott Peterson wormed his way into her life and into her heart.

DORNIN: But others caution Frey's testimony could fall flat and simply pinpoint Scott Peterson as a cad, something the defense has already admitted to the jury.

Frey's scheduled appearance has nearly overshadowed the defense claim that it's found new evidence that could potentially exonerate Peterson. The court suspended the trial abruptly last Thursday after Mark Geragos announced the discovery.

A source close to the case says the discovery relates to a plastic tarp found near Laci Peterson's body. Local police said the tarp smelled like there had been a decomposing body inside. It's now being tested.

No word on whether the court will discuss the results of tests conducted on that tarp.

(END VIDEOTAPE)

DORNIN: At least not in open court, it's likely that both sides will go back in a closed session when it begins at 9:00 a.m. local time. And then after that is completed, we are expecting Amber Frey to take the stand -- Daryn?

KAGAN: And Rusty, some people are suggesting that this testimony could go on for two to three weeks with Amber Frey on the stand?

DORNIN: That's right. Even her own attorney, Gloria Allred, is saying she will be up there a considerable amount of time. And remember, there's only three days of court this week. They only go through Thursday, so it's Tuesday, Wednesday, Thursday. Next week is four days. We are expecting it to probably go through the end of next week.

KAGAN: All right. Rusty Dornin, Redwood City, more from you later. Thank you.

Accused wife killer, Mark Hacking is scheduled to make a court appearance by video hookup this hour. According to court documents filed by Salt Lake City prosecutors, Hacking admitted he killed his wife Lori with a rifle while she was sleeping.

Prosecutors contend the Hackings argued after he admitted to her that he lied about his acceptance to medical school. Lori Hacking's body has not been found, but it's thought to be somewhere in the Salt Lake City landfill.

The fighting in Najaf rages with no end in sight. As U.S. forces move in, the battlefield shifts to an ironic location. The very latest is up next.

Also for a U.S. diplomat, the training is anything but ordinary, but the same is true for the assignment. Preparing for the dangers of Baghdad ahead.

And later, he's fired -- financial trouble and a major shake up for Donald Trump.

CNN LIVE TODAY is coming right back.

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RHONDA SCHAFFLER, CNN SR. BUSINESS CORRESPONDENT: I'm Rhonda Schaffler at the New York Stock Exchange. Reports showing business productivity rose 2.9 percent in the second quarter, beating expectations has some investors feeling rather bullish.

Stocks broadly higher, but the enthusiasm somewhat being roped in as investors await the Federal Reserve's decision on interest rates.

The Dow ahead of that, up 71 points. The Nasdaq is 1 percent higher.

Economists widely expect Alan Greenspan and fed officials to raise the fed's key rate by a quarter point to 1.5 percent. But some fed watchers believe recent disappointing economic data and the upcoming election may make this the last rate hike for some time.

That's the latest news from Wall Street. CNN's LIVE TODAY continues in just a moment.

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KAGAN: Sporadic fighting today in the poor Baghdad neighborhood known as Sadr City. Messages from mosque loudspeakers called on Sadr City residents to arm themselves.

Also a militant group issued a taped video statement threatening attacks on Iraqi government institutions.

And to the south, gunfire in Najaf, U.S. Marines are battling fighters loyal to radical cleric Muqtada Al-Sadr. It's happening again today.

American forces are sweeping a vast cemetery for insurgents using tanks and helicopters. The graveyard is filled with caves and multistory mausoleum-type buildings and other hiding spots.

A large explosion rocks central Baghdad today as a U.S. military convoy passed through the area. Two soldiers were slightly injured.

Like U.S. troops, American diplomats headed to Iraq are getting some specialized training. Here now is our state department correspondent, Andrea Koppel.

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ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT (voice-over): The green pastures of West Virginia are a world away from the dusty streets of Baghdad. But it's here that hundreds of American diplomats and other federal workers are learning some of the skills they'll need to survive in what's considered the most dangerous diplomatic post in the world.

UNIDENTIFIED MALE INSTRUCTOR: That's going to be the primary area where I'm going to stick my mirror and/or, preferably my body.

KOPPEL: Instructors from the state department's bureau of diplomatic security show students that anything from a suitcase to a cigar box can be used to hide explosives, the kind of explosives that have killed so many people in Iraq.

Look at the effect on this car from only one stick of dynamite.

NANCY PILON, PROTOCOL OFFICER: To hear the sound and actually feel it, and your heart rate starts pumping and it's amazing.

KOPPEL: 42-year-old Nancy Pilon, a protocol officer at the state department is among a small army of American diplomats who volunteered to leave the comforts of home for at least the next six months to work at the new U.S. embassy in Baghdad.

PILON: I think it's important to go there and put a face on the administration hopefully. And I'm looking forward to it.

KOPPEL: 31-year-old Ryan Stiles says he'll be working with Iraqis to help build democratic institutions.

RYAN STILES, COUNTERTERRORISM OFFICIAL: I was doing counterterrorism and homeland security from behind a desk prior to this. And I wanted to get more on the front line.

KOPPEL: 59-year-old Stuart Foote, an auditor for the U.S. Air Force in Ohio is leaving his wife and grown children to help track how Iraqi oil money and U.S. taxpayer funds are spent.

STUART FOOTE, AIR FORCE AUDITOR: This is where the work is. This is where the need is. I didn't go, there would be somebody in a green uniform maybe doing what I'm doing, and there's no reason for that. I'm qualified to do it. And they've set up this opportunity and I'm happy to take advantage of it.

KOPPEL: But before they leave for duty in Iraq, they first have to complete this mandatory week-long course. For some, including Nancy Pilon, that means learning to fire an AK-47 and other weapons for the first time.

(on camera) The philosophy behind this course is essentially the best offense is a good defense. And so while most of these men and women won't actually carry a weapon in Iraq, they'll know how to use one if they ever need to.

FRANK TAYLOR, DIPLOMATIC SECURITY OFFICER: The diplomats are the first line of defense of our nation. They serve in harm's way, and it's our obligation to make sure that when we ask them to go serve their nation that they're the best prepared.

UNIDENTIFIED FEMALE INSTRUCTOR: Anybody in here ever experience shock?

KOPPEL (voice-over): That means as part of their training, students also learn first aid, what to do if the worst happens.

PAULA WINKLE, VICTIM: I obviously didn't sustain a direct hit or else it would have been severed.

KOPPEL: Paula Winkle says she is living proof the training can save lives and limbs.

Last October she was staying in Baghdad's Al-Rashid hotel when it came under rocket attack. One landed in Paula's room. Twelve surgeries later, she has lost two inches of bone and a lot of muscle, but she still considers herself lucky.

WINKLE: Kind of like a wakeup call, you know. If I hadn't had the training, they're not real sure what would have happened.

KOPPEL: Only a few of the 550 students who have been through the training so far have opted not to go to Baghdad. It's a measure of just how important Iraq is to the United States that these men and women are going at all.

If there were similar dangers in any other country, state department officials say, the U.S. would be ordering its diplomats to leave.

(END VIDEOTAPE)

KAGAN: Well, that's our Andrea Koppel reporting on some jobs that are very challenging. The question for you is, how challenging is your job?

If you say it's not, believe it or not, that very fact could lead to some real challenges later in life.

And later, how one video game is killing the competition while breathing new life into the computer industry. "Doom 3" takes aim. That's coming up.

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KAGAN: We are talking Bonnie, but there's not much lovely about her -- not like our lovely Jacqui Jeras who's tracking the tropical storm.

Good morning.

JACQUI JERAS, CNN METEOROLOGIST: Good morning, Daryn.

Yes, we have a brand new update on Bonnie and Charlie both.

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JERAS: Daryn?

KAGAN: Yes, quick question, Jacqui.

JERAS: Yes.

KAGAN: How common to have two storms turning out there at the same time?

JERAS: Pretty common, yes. You start to see them lining up this time of the year.

KAGAN: All right. Get in line, just stay there and behave yourself.

JERAS: Yes.

KAGAN: Jacqui, thank you.

Coming up, the war over the war, how President Bush wants to use John Kerry's own vote on Iraq against him, but will it backfire?

The morning's most complete political wrap up is up next.

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