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CNN Live Today
End to Najaf Fighting?; Interview with Mouwaffaq al-Rubaie; Ashcroft Live News Event
Aired August 20, 2004 - 10:00 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: Good morning, from CNN in New York City. I'm Daryn Kagan. Let's start our morning by taking a look at what is happening now in the news.
Iraqi security forces have entered the Imam Ali Mosque in Najaf. Witnesses say the Mehdi militants, who had been occupying the shrine, were already gone. The move follows a major offensive against the militia and its leader radical cleric Muqtada al-Sadr. John Vause is in Najaf, and we'll have a live report in just a minute.
Democratic presidential candidate, John Kerry meets with laid-off workers in Charlotte, North Carolina. A live picture there from Charlotte. The new Swift Boat Veterans for Truth ad is due to air today. We'll see how it's affecting the campaign, and look at a new poll showing Kerry losing support among war veterans. A live report is coming up straight ahead.
Two men are under arrest, one in Northern Virginia, the other in Chicago accused of financing terrorists. The Justice Department says they, and a third man living overseas, funneled hundreds of thousands of dollars to Hamas. Attorney General John Ashcroft will provide details in a news conference coming up. That's happening live in just about 15 minutes.
Keeping you informed, CNN is the most trusted name in news.
And keeping you informed. Now getting underway, a joint House Committee meeting to hear from 9/11 Commission's Vice Chairman Lee Hamilton, and other members of the panel. It will explore privacy and civil liberties since 9/11.
Other stories we are watching today. Fighting has come to an end in Najaf, after Iraqi police take control of the Imam Ali Mosque. Let's take you right now to CNN's John Vause. He is in Baghdad with more on this development.
John, hello.
JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn. Well, it appears to be all over. A short time ago, Iraqi police and security forces by all accounts just simply walked into the Imam Ali Mosque. Inside they found about 500 members, according to a spokesperson from the Interior Ministry, Five hundred members of the Mehdi Militia sitting around with, quote, "ancient weapons."
Though tired, though hungry, they've now received medical help and food, that kind of thing. They didn't put up a fight. This all happened without a shot being fired. Excuse me.
Now, there was, of course, some very intense fighting around the Imam Ali Mosque last night in the old city of Najaf. U.S. warplanes pounded positions to the east of the Imam Ali Mosque. There was also helicopter gun ships, as well as AC-130s were called in.
And there was heavy gun battles between U.S.-Iraqi forces and the Mehdi Militia in the cemetery. But then just a few hours ago, the police had access to the mosque. They walked in. There was virtually nobody there. And there was no sign either of Muqtada al-Sadr or any of his aides.
The question now is: Where is Muqtada al-Sadr? Where is the man who has led this uprising? We have not seen him for many, many days. In fact, he refused to meet with a delegation from Baghdad on Tuesday, saying he just simply wasn't safe for a face-to-face meeting.
There's been no public appearance from Muqtada al-Sadr for quite some time. And none of his aides were in that mosque either. The big question now is, where is Muqtada al-Sadr. Where are his aides?
As for those 500 members of the Mehdi Militia who were inside the Imam Ali Mosque, we are told that they will receive amnesty, that there will be no charges brought against them -- Daryn.
KAGAN: And John, besides the whereabouts of Muqtada al-Sadr, what about his status? He has been everything from a wanted man to a potential politician. How is he viewed today?
VAUSE: That's -- we have to wait and see. But he -- one of the conditions that was laid out for Muqtada al-Sadr to end this standoff, a part from leaving the mosque, which he's obviously done. A part from the Mehdi, what's left of it, to lay down their weapons, and we've seen those 500 people inside the mosque to do that.
They want him to join the mainstream political process, turn his Mehdi Militia into a political party. So, we heard from the interim Iraqi prime minister earlier today saying that the olive branch was still extended to Muqtada al-Sadr, to take part in mainstream politics here in Iraq.
So, that offer, as it seems, it's very hard to tell with this government. They seem to have different viewpoints depending on who you speak with. But going from the interim prime minister at least, the olive branch is there. He is invited to join the mainstream political process if anyone can find him -- Daryn.
KAGAN: All right. That story continues. John Vause in Baghdad, thank you.
Also, I expect to have a chance to talk with the Iraqi National Security Advisor Mouwaffaq al-Rubaie. He will be coming and joining me in just a few minutes.
Meanwhile, let's move on to news right here in the states. This hour, with events from 35 years ago, they are impacting the current White House race. John Kerry has come out swinging saying the president is using front groups to do his dirty work.
Our Dan Lothian is traveling with the Kerry campaign.
(BEGIN VIDEOTAPE)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The first definition of patriotism is keeping faith with those who wear the uniform.
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): In an all-out effort to defend his war record, Senator John Kerry launched an attack on the group Swift Boat Veterans for Truth, which has been running a television ad in key battleground states, and speaking out publicly questioning his service and medals.
KERRY: This group isn't interested in the truth. They're not telling the truth.
(APPLAUSE)
LOTHIAN: Speaking in Boston to some 5,000 members of the International Association of Firefighters, Kerry took the offensive, saying in public what his press releases and campaign have said in response for months.
KERRY: Bring it on!
LOTHIAN: Kerry also went after President Bush for not denouncing the ads.
KERRY: He wants them to do his dirty work.
LOTHIAN: The Bush campaign calls that claim false. And insists the president has always considered Kerry's service in Vietnam noble. But last week on "LARRY KING LIVE," Bush passed up the opportunity to call on his supporters to back down.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES OF AMERICA: Well, I haven't seen the ad. But what I do condemn is these unregulated, soft money expenditures by very wealthy people.
LOTHIAN: Kerry's war record has been questioned throughout his political career. But the controversy has intensified in the presidential campaign. The Kerry campaign is firing back with another 30-second ad.
(BEGIN KERRY-EDWARDS AD)
JIM RASSMANN, U.S. ARMY SPECIAL FORCES, VIETNAM: I expected I would be shot when he pulled me out of the river. He risked his life to save mine.
(END KERRY-EDWARDS AD) LOTHIAN: This aggressive response comes, as the credibility of the leading veteran behind the critical Kerry ad is being questioned. Larry Thurlow had disputed Kerry's claim of a gun battle that led to a Bronze Star.
But CNN has obtained Thurlow's own military records showing that in fact all the boats came under weapons fire in the area that day. Thurlow now says his record reflects an account written up by Kerry, and calls it, quote, "a lie."
(on camera): The new Kerry counter ad will run in Ohio, Wisconsin and West Virginia. That means the Kerry campaign is deviating from cost-saving plans not to buy any television ads until September. A sign that despite the official line, there is pressure to end this controversy.
Dan Lothian, CNN, Derry, New Hampshire.
(END VIDEOTAPE)
KAGAN: And the recently revealed Navy citation indicating that all boats were under fire, when John Kerry rescued an officer was first reported by Michael Dobbs in "The Washington Post." But a member of the Swift Boat Veterans for Truth and the author of "Unfit for Command," suggests that Dobbs did not do enough research.
(BEGIN VIDEO CLIP)
JOHN O'NEILL, AUTHOR, "UNFIT FOR COMMAND": We believe the piece of evidence he relies on is very tangential. And he refused to interview the four officers that were involved and the three additional swift boat sailors, all who were involved directly in the incident who say there was no fire.
He also didn't examine the fact that there is absolutely not a bullet hole anywhere. Nobody was wounded and the boats were there for an hour and a half. So, we think it's a very one-sided treatment of the matter.
MICHAEL DOBBS, "THE WASHINGTON POST": I have talked extensively to the members of Mr. O'Neill's organization, and three of the five skippers. In addition to Mr. Kerry, who were on that river that day when Mr. Kerry received the Bronze Star, who belonged to Mr. O'Neill's organization and opposed -- strongly opposed Mr. Kerry.
(END VIDEO CLIP)
KAGAN: A new CBS poll of registered voters shows President Bush picking up support from veterans. According to the poll, 55 percent of veterans favor Bush with Kerry trailing at 37 percent. That's a big change, by the way. A poll taken immediately after the Democratic convention had the candidates in a dead heat at 46 percent each.
A new ad by the Swift Boat Veterans for Truth is being released this morning. We plan to bring it to you in the next hour of CNN LIVE TODAY. There's also a lot more ahead on the program. John Kerry and President Bush and the battle of the ads. We're going to have a live report from the White House. You're also going to hear what swift boat veteran Larry Thurlow says about his involvement in the controversy.
And oil futures could reach what some think is a critical point, $50 a barrel. We'll explain what this means to you for your home heating bill and at the gas pump.
All right, it's Friday, we have to fit some laughs in here. Later, you met the parents. Now, "Meet the Fockers." Ben Stiller and the whole gang are back, including Barbra Streisand. We'll have your preview.
(COMMERCIAL BREAK)
KAGAN: It is one week after Hurricane Charley delivered a body blow to Florida's midsection. Here are the latest numbers: 23 people are confirmed dead from the storm; property damage is estimated at $7.4 billions of dollars; and some 335,000 customers are still without power. The Category 4 hurricane was one of the worst in the state's history.
One of the rescue and recovery efforts after the hurricane also involves rounding up and taking care of pets. And we're not just talking cats and dogs. Veterinarians and other animal experts say they've been dealing with an ark's worth of exotic creatures.
They even paid a visit to a poisonous snake facility, which milks the reptiles for their venom. Fortunately, all of the snakes are accounted for. That's good news for the snakes and for the folks that might live around that center.
Right now, we want to take our viewers to Baghdad to talk about the latest developments in Najaf, with Iraqi National Security Advisor Mouwaffaq al-Rubaie.
Thank you for joining us, sir.
MOUWAFFAQ AL-RUBAIE, IRAQI NAT'L. SECURITY ADVISOR: Thank you for having me.
KAGAN: Can you explain to us exactly what has taken place at the mosque in the last hour or so?
AL-RUBAIE: Well, basically the operation is continuing, to clear the area around the holy shrine and inside the shrine. This operation has been on for the last two weeks to establish the law and order in the city, in the inner city, as well as in the shrine.
The government has the duty to establish the law and order. And this is an armed sedition. And you can't have democracy, you can't build a political process with the militia all over the country.
KAGAN: Right. But as these talks have gone on and Iraqi troops show up, there's no sign of Muqtada al-Sadr. He and much of his militia are just gone from this mosque?
AL-RUBAIE: Well, you know, the Najaf sort of are -- the structure of Najaf, this is a very old city. This is a city of 1,000 years. Now, we're talking about very small alleyways, very convoluted small streets. And small houses, underground, basements and also -- so he can -- he can -- it's not very easy to find him. He could have left the shrine and gone to anywhere in the old city.
KAGAN: But in terms of the shrine, do you consider Iraqi troops as having possession of that now? No longer under the control of Muqtada al-Sadr?
AL-RUBAIE: The most important thing is to disband the militia, Mehdi Militia. And evacuate the militia of Muqtada al-Sadr from the holy shrine, hand over the holy shrine to the religious establishment, and establish law and order. And get the police to patrol the streets and try to make the normal life of the Najaf people.
KAGAN: In terms of Muqtada al-Sadr, I know his whereabouts are a big question, but what's his status? He's been everything from a wanted man, for being held responsible for another cleric's murder, to a potential politician. How is he seen by this current government?
AL-RUBAIE: Well, number one, by definition, Muqtada al-Sadr is not a terrorist. Number two, he's not a real strategic threat against the Iraqi national security. The threat coming to the Iraqi national security is from Zarqawi; bin Laden, al Qaeda and the religious extremists in the north and in the west.
KAGAN: Excuse me, sir. But how can you say that a man who has held this mosque and this city, and is encouraging uprising in other cities among Shiites all around Iraq, how can you say he's not a threat to security in your country?
AL-RUBAIE: Well, I think this is a bubble that's going to burst out and it's bursting, and it will go away. This is not going to stay with us. And the Sadrite trend, the movement which he has inherited, rightly or wrongly, whether you agree or not, he has inherited this movement.
And the followers all over the country can be incorporated within the political process. And I can assure you that the political process and the democracy we are building in Iraq is so accommodating, that it will -- it can and it will accommodate even the most extremist religious group. Including Muqtada al-Sadr.
KAGAN: So, ultimately it's your hope he can sit down at the table and that you can negotiate with him. And that he can be part of the political process and not held responsible for the peoples whose lives have been lost in the standoffs in Sadr City and also in Najaf?
AL-RUBAIE: Well, that's not what I said. What I said is the law and order, the old legal cases has to be pursued. The judicial system in this country is totally independent.
We in the executive arm of this government, we would like the Sadrite trend: his followers, his lieutenants, those who have not been incriminated and accused by -- for killing or for violating the law, and disturbance or using any sort of violence, we would like to incorporate them. And reintegrate them into the society and into the political process.
KAGAN: And that includes, and my final question, that would include to Muqtada al-Sadr, as the leader of this movement?
AL-RUBAIE: Certainly it will include Muqtada al-Sadr. Because as far as we're concerned -- and I have not seen any warrant, arrest warrant against Muqtada al-Sadr you're referring to.
But the law is the law, and absolutely we will implement the law of the land. And if he has been accused of any criminal act, he will -- he should stand at trial. And he will be asked and he will be held accountable in front of an Iraqi judge.
KAGAN: I guess the next sign is, just trying to figure out where the man is. Mouwaffaq al-Rubaie, thank you for your time today.
AL-RUBAIE: Thank you very much.
KAGAN: Iraqi's national security advisor joining us live from Baghdad. Thank you, sir.
And we're going to take a break. We are back with a lot more news from New York City after this.
(COMMERCIAL BREAK)
KAGAN: We're standing by. The Department of Justice, John Ashcroft, the attorney general expecting to hold a news conference. We are getting word it could begin in the next couple of minutes.
We'll bring that to you live, as it begins here on CNN. Right now, another break.
(COMMERCIAL BREAK)
KAGAN: All right. We're looking at Attorney General John Ashcroft at the Department of Justice. Let's listen.
(BEGIN LIVE NEWS EVENT)
JOHN ASHCROFT, U.S. ATTORNEY GENERAL: Good morning. Today I'm joined by Chris Wray, the assistant attorney general from the criminal division -- Chris, thank you for being here -- Patrick Fitzgerald who is the United States attorney for the Northern District of Illinois, and Don Vandine (ph), deputy assistant director of the FBI. Don, thank you for coming.
Earlier this morning, an indictment by a federal grand jury in Chicago was unsealed. Three men who allegedly ran a U.S.-based terrorist recruiting and financing cell associated with foreign terrorist organization Hamas were indicted for their roles in a 15- year racketing conspiracy in the United States and abroad. This cell allegedly financed the activities of a terrorist organization that was murdering innocent victims abroad, including American citizens. Muhammad Salah of suburban Chicago, Abdelhaleem Hasan Ashqar of suburban Washington, D.C., were arrested last night.
An arrest warrant was issued for the third defendant, Mousa Abu Marzook who formerly lived in Louisiana and northern Virginia, and who now resides in Damascus, Syria. And Marzook will be considered a fugitive from justice.
All three are charged with racketeering conspiracy for allegedly conducting, with named and unnamed co-conspirators, the affairs of Hamas. Hamas has been designated a foreign terrorist organization by the State Department, designated since 1997.
The racketeering acts that Hamas enterprise allegedly agreed to commit include multiple solicitations of first-degree murder; conspiracy to kill, kidnap, maim and injure persons in a foreign country; material support of terrorism; hostage-taking and money- laundering.
Defendant Salah is also charged with providing material support, including money and personnel, to a terrorist organization.
According to the indictment, in 1999, Salah directed and financed the travel of a Chicago-based associate to scout potential terrorist targets in Israel.
Defendants Salah and Ashqar are also charged with obstruction of justice.
Salah is alleged to have provided sworn answers that he knew to be false in a civil suit involving the murder of an American in the West Bank. It is alleged that in February 1998, in New York, and again in June 2003, in Chicago, Ashqar, in an effort to hide his and co-conspirators Hamas' activities, refused to testify before a grand jury despite a grant of immunity.
This indictment also seeks forfeiture of approximately $2.7 million from accounts in the defendants' control.
Now, I want to note, as I always do, that an indictment contains only charges, and the indictment itself is not evidence of guilt. The defendants are presumed innocent until proven guilty.
I would also note that this indictment is not a reflection on the well-meaning people who practice the Muslim faith. This is an indictment of individuals for acts that are specified in the indictment.
Throughout the 1990s, Hamas members publicly claimed credit for multiple terrorist attacks that resulted in the death of numerous civilians and military personnel in Israel.
Just a few of the attacks that are cited in the indictment for which Hamas took credit are as follows: an April 1994 car bombing in Israel, killing eight Israelis; a February 1996 suicide bombing in Jerusalem that killed 24 Israelis and two Americans; a May 1996 drive- by shooting at students in the West Bank in which American student David Boim was killed; and two suicide bombings in July 1997 in Jerusalem that killed 16 Israelis.
According to the indictment, between 1989 and January 1993, Salah traveled throughout the United States, Israel and the West Bank meeting with Hamas representatives. During these travels, he is alleged to have recruited and trained new members of Hamas, and distributed hundreds of thousands of dollars in order to support Hamas members and activities.
In September 1992, for example, the indictment alleges that Salah traveled to the West Bank where he met with Hamas leaders. There, Salah was allegedly informed that Hamas had approximately 53 recruits prepared to carry out terrorist attacks, but that funding was needed to assist them.
The indictment alleges that Salah agreed to pass on the request for money to Marzook and others. It is alleged that on this trip Salah provided money for the purchase of weapons by writing 10 checks, each for $5,000, from one of his Chicago bank accounts. He then cashed those checks in Israel.
In the following three months, Hamas members publicly claimed credit for eight different terrorist attacks that resulted in the deaths of numerous Israeli civilians and military personnel.
Defendant Marzook is alleged to be the deputy chief of Hamas political bureau, which functions as the leadership body for Hamas, including coordinating terrorist attacks by Hamas.
From 1988 until February 1993, while living in America, Marzook allegedly coordinated and financed the activities of Hamas within the United States and elsewhere. The indictment alleges that during this time, Marzook also maintained numerous bank accounts in such places as Ohio, Wisconsin, New York, Louisiana, Mississippi and Virginia.
To aid Hamas, substantial sums of money, sometimes in the hundreds of thousands of dollars were allegedly transferred in and out of these accounts as well as overseas accounts for disbursements inside and outside the United States.
Both Marzook and Salah had previously been designated as specially designated terrorists by the Treasury Department's Office of Foreign Asset Control.
Defendant Ashqar initially entered the United States as a graduate student at the University of Mississippi in Oxford. The indictment alleges that from 1989 on, Ashqar functioned as a conduit of money for Hamas and as an administrator for the terrorist network. He allegedly participated in Hamas meetings in the United States and in a number of phone conversations about Hamas' plans. Sometimes these calls were in code.
The individuals named in this indictment are alleged to have played a substantial role in financing and supporting international terrorism. They are alleged to be material supporters of a foreign terrorist organization, taking advantage of the freedoms of an open society to foster and finance acts of terror.
The United States makes no distinction between those who carry out terrorist attacks and those who knowingly finance, manage or supervise terrorist organizations.
This case would have been much more difficult to bring were it not for information-sharing authorized by the USA Patriot Act. Information gathered by the intelligence community and now shared with law enforcement was critical in completing this investigation and bringing this indictment.
I thank Assistant Attorney General Chris Wray. I also express my appreciation to U.S. Attorney Patrick Fitzgerald. And I commend the efforts of the Federal Bureau of Investigation.
Don, thank you for being here representing them. I commend their efforts in this case.
I would be pleased to welcome your questions.
QUESTION: What can you tell us about the efforts to apprehend Mr. Marzook? Do we believe he's in Syria? And what sort of arrest warrant...
(END LIVE NEWS EVENT)
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Aired August 20, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning, from CNN in New York City. I'm Daryn Kagan. Let's start our morning by taking a look at what is happening now in the news.
Iraqi security forces have entered the Imam Ali Mosque in Najaf. Witnesses say the Mehdi militants, who had been occupying the shrine, were already gone. The move follows a major offensive against the militia and its leader radical cleric Muqtada al-Sadr. John Vause is in Najaf, and we'll have a live report in just a minute.
Democratic presidential candidate, John Kerry meets with laid-off workers in Charlotte, North Carolina. A live picture there from Charlotte. The new Swift Boat Veterans for Truth ad is due to air today. We'll see how it's affecting the campaign, and look at a new poll showing Kerry losing support among war veterans. A live report is coming up straight ahead.
Two men are under arrest, one in Northern Virginia, the other in Chicago accused of financing terrorists. The Justice Department says they, and a third man living overseas, funneled hundreds of thousands of dollars to Hamas. Attorney General John Ashcroft will provide details in a news conference coming up. That's happening live in just about 15 minutes.
Keeping you informed, CNN is the most trusted name in news.
And keeping you informed. Now getting underway, a joint House Committee meeting to hear from 9/11 Commission's Vice Chairman Lee Hamilton, and other members of the panel. It will explore privacy and civil liberties since 9/11.
Other stories we are watching today. Fighting has come to an end in Najaf, after Iraqi police take control of the Imam Ali Mosque. Let's take you right now to CNN's John Vause. He is in Baghdad with more on this development.
John, hello.
JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn. Well, it appears to be all over. A short time ago, Iraqi police and security forces by all accounts just simply walked into the Imam Ali Mosque. Inside they found about 500 members, according to a spokesperson from the Interior Ministry, Five hundred members of the Mehdi Militia sitting around with, quote, "ancient weapons."
Though tired, though hungry, they've now received medical help and food, that kind of thing. They didn't put up a fight. This all happened without a shot being fired. Excuse me.
Now, there was, of course, some very intense fighting around the Imam Ali Mosque last night in the old city of Najaf. U.S. warplanes pounded positions to the east of the Imam Ali Mosque. There was also helicopter gun ships, as well as AC-130s were called in.
And there was heavy gun battles between U.S.-Iraqi forces and the Mehdi Militia in the cemetery. But then just a few hours ago, the police had access to the mosque. They walked in. There was virtually nobody there. And there was no sign either of Muqtada al-Sadr or any of his aides.
The question now is: Where is Muqtada al-Sadr? Where is the man who has led this uprising? We have not seen him for many, many days. In fact, he refused to meet with a delegation from Baghdad on Tuesday, saying he just simply wasn't safe for a face-to-face meeting.
There's been no public appearance from Muqtada al-Sadr for quite some time. And none of his aides were in that mosque either. The big question now is, where is Muqtada al-Sadr. Where are his aides?
As for those 500 members of the Mehdi Militia who were inside the Imam Ali Mosque, we are told that they will receive amnesty, that there will be no charges brought against them -- Daryn.
KAGAN: And John, besides the whereabouts of Muqtada al-Sadr, what about his status? He has been everything from a wanted man to a potential politician. How is he viewed today?
VAUSE: That's -- we have to wait and see. But he -- one of the conditions that was laid out for Muqtada al-Sadr to end this standoff, a part from leaving the mosque, which he's obviously done. A part from the Mehdi, what's left of it, to lay down their weapons, and we've seen those 500 people inside the mosque to do that.
They want him to join the mainstream political process, turn his Mehdi Militia into a political party. So, we heard from the interim Iraqi prime minister earlier today saying that the olive branch was still extended to Muqtada al-Sadr, to take part in mainstream politics here in Iraq.
So, that offer, as it seems, it's very hard to tell with this government. They seem to have different viewpoints depending on who you speak with. But going from the interim prime minister at least, the olive branch is there. He is invited to join the mainstream political process if anyone can find him -- Daryn.
KAGAN: All right. That story continues. John Vause in Baghdad, thank you.
Also, I expect to have a chance to talk with the Iraqi National Security Advisor Mouwaffaq al-Rubaie. He will be coming and joining me in just a few minutes.
Meanwhile, let's move on to news right here in the states. This hour, with events from 35 years ago, they are impacting the current White House race. John Kerry has come out swinging saying the president is using front groups to do his dirty work.
Our Dan Lothian is traveling with the Kerry campaign.
(BEGIN VIDEOTAPE)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: The first definition of patriotism is keeping faith with those who wear the uniform.
DAN LOTHIAN, CNN CORRESPONDENT (voice-over): In an all-out effort to defend his war record, Senator John Kerry launched an attack on the group Swift Boat Veterans for Truth, which has been running a television ad in key battleground states, and speaking out publicly questioning his service and medals.
KERRY: This group isn't interested in the truth. They're not telling the truth.
(APPLAUSE)
LOTHIAN: Speaking in Boston to some 5,000 members of the International Association of Firefighters, Kerry took the offensive, saying in public what his press releases and campaign have said in response for months.
KERRY: Bring it on!
LOTHIAN: Kerry also went after President Bush for not denouncing the ads.
KERRY: He wants them to do his dirty work.
LOTHIAN: The Bush campaign calls that claim false. And insists the president has always considered Kerry's service in Vietnam noble. But last week on "LARRY KING LIVE," Bush passed up the opportunity to call on his supporters to back down.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES OF AMERICA: Well, I haven't seen the ad. But what I do condemn is these unregulated, soft money expenditures by very wealthy people.
LOTHIAN: Kerry's war record has been questioned throughout his political career. But the controversy has intensified in the presidential campaign. The Kerry campaign is firing back with another 30-second ad.
(BEGIN KERRY-EDWARDS AD)
JIM RASSMANN, U.S. ARMY SPECIAL FORCES, VIETNAM: I expected I would be shot when he pulled me out of the river. He risked his life to save mine.
(END KERRY-EDWARDS AD) LOTHIAN: This aggressive response comes, as the credibility of the leading veteran behind the critical Kerry ad is being questioned. Larry Thurlow had disputed Kerry's claim of a gun battle that led to a Bronze Star.
But CNN has obtained Thurlow's own military records showing that in fact all the boats came under weapons fire in the area that day. Thurlow now says his record reflects an account written up by Kerry, and calls it, quote, "a lie."
(on camera): The new Kerry counter ad will run in Ohio, Wisconsin and West Virginia. That means the Kerry campaign is deviating from cost-saving plans not to buy any television ads until September. A sign that despite the official line, there is pressure to end this controversy.
Dan Lothian, CNN, Derry, New Hampshire.
(END VIDEOTAPE)
KAGAN: And the recently revealed Navy citation indicating that all boats were under fire, when John Kerry rescued an officer was first reported by Michael Dobbs in "The Washington Post." But a member of the Swift Boat Veterans for Truth and the author of "Unfit for Command," suggests that Dobbs did not do enough research.
(BEGIN VIDEO CLIP)
JOHN O'NEILL, AUTHOR, "UNFIT FOR COMMAND": We believe the piece of evidence he relies on is very tangential. And he refused to interview the four officers that were involved and the three additional swift boat sailors, all who were involved directly in the incident who say there was no fire.
He also didn't examine the fact that there is absolutely not a bullet hole anywhere. Nobody was wounded and the boats were there for an hour and a half. So, we think it's a very one-sided treatment of the matter.
MICHAEL DOBBS, "THE WASHINGTON POST": I have talked extensively to the members of Mr. O'Neill's organization, and three of the five skippers. In addition to Mr. Kerry, who were on that river that day when Mr. Kerry received the Bronze Star, who belonged to Mr. O'Neill's organization and opposed -- strongly opposed Mr. Kerry.
(END VIDEO CLIP)
KAGAN: A new CBS poll of registered voters shows President Bush picking up support from veterans. According to the poll, 55 percent of veterans favor Bush with Kerry trailing at 37 percent. That's a big change, by the way. A poll taken immediately after the Democratic convention had the candidates in a dead heat at 46 percent each.
A new ad by the Swift Boat Veterans for Truth is being released this morning. We plan to bring it to you in the next hour of CNN LIVE TODAY. There's also a lot more ahead on the program. John Kerry and President Bush and the battle of the ads. We're going to have a live report from the White House. You're also going to hear what swift boat veteran Larry Thurlow says about his involvement in the controversy.
And oil futures could reach what some think is a critical point, $50 a barrel. We'll explain what this means to you for your home heating bill and at the gas pump.
All right, it's Friday, we have to fit some laughs in here. Later, you met the parents. Now, "Meet the Fockers." Ben Stiller and the whole gang are back, including Barbra Streisand. We'll have your preview.
(COMMERCIAL BREAK)
KAGAN: It is one week after Hurricane Charley delivered a body blow to Florida's midsection. Here are the latest numbers: 23 people are confirmed dead from the storm; property damage is estimated at $7.4 billions of dollars; and some 335,000 customers are still without power. The Category 4 hurricane was one of the worst in the state's history.
One of the rescue and recovery efforts after the hurricane also involves rounding up and taking care of pets. And we're not just talking cats and dogs. Veterinarians and other animal experts say they've been dealing with an ark's worth of exotic creatures.
They even paid a visit to a poisonous snake facility, which milks the reptiles for their venom. Fortunately, all of the snakes are accounted for. That's good news for the snakes and for the folks that might live around that center.
Right now, we want to take our viewers to Baghdad to talk about the latest developments in Najaf, with Iraqi National Security Advisor Mouwaffaq al-Rubaie.
Thank you for joining us, sir.
MOUWAFFAQ AL-RUBAIE, IRAQI NAT'L. SECURITY ADVISOR: Thank you for having me.
KAGAN: Can you explain to us exactly what has taken place at the mosque in the last hour or so?
AL-RUBAIE: Well, basically the operation is continuing, to clear the area around the holy shrine and inside the shrine. This operation has been on for the last two weeks to establish the law and order in the city, in the inner city, as well as in the shrine.
The government has the duty to establish the law and order. And this is an armed sedition. And you can't have democracy, you can't build a political process with the militia all over the country.
KAGAN: Right. But as these talks have gone on and Iraqi troops show up, there's no sign of Muqtada al-Sadr. He and much of his militia are just gone from this mosque?
AL-RUBAIE: Well, you know, the Najaf sort of are -- the structure of Najaf, this is a very old city. This is a city of 1,000 years. Now, we're talking about very small alleyways, very convoluted small streets. And small houses, underground, basements and also -- so he can -- he can -- it's not very easy to find him. He could have left the shrine and gone to anywhere in the old city.
KAGAN: But in terms of the shrine, do you consider Iraqi troops as having possession of that now? No longer under the control of Muqtada al-Sadr?
AL-RUBAIE: The most important thing is to disband the militia, Mehdi Militia. And evacuate the militia of Muqtada al-Sadr from the holy shrine, hand over the holy shrine to the religious establishment, and establish law and order. And get the police to patrol the streets and try to make the normal life of the Najaf people.
KAGAN: In terms of Muqtada al-Sadr, I know his whereabouts are a big question, but what's his status? He's been everything from a wanted man, for being held responsible for another cleric's murder, to a potential politician. How is he seen by this current government?
AL-RUBAIE: Well, number one, by definition, Muqtada al-Sadr is not a terrorist. Number two, he's not a real strategic threat against the Iraqi national security. The threat coming to the Iraqi national security is from Zarqawi; bin Laden, al Qaeda and the religious extremists in the north and in the west.
KAGAN: Excuse me, sir. But how can you say that a man who has held this mosque and this city, and is encouraging uprising in other cities among Shiites all around Iraq, how can you say he's not a threat to security in your country?
AL-RUBAIE: Well, I think this is a bubble that's going to burst out and it's bursting, and it will go away. This is not going to stay with us. And the Sadrite trend, the movement which he has inherited, rightly or wrongly, whether you agree or not, he has inherited this movement.
And the followers all over the country can be incorporated within the political process. And I can assure you that the political process and the democracy we are building in Iraq is so accommodating, that it will -- it can and it will accommodate even the most extremist religious group. Including Muqtada al-Sadr.
KAGAN: So, ultimately it's your hope he can sit down at the table and that you can negotiate with him. And that he can be part of the political process and not held responsible for the peoples whose lives have been lost in the standoffs in Sadr City and also in Najaf?
AL-RUBAIE: Well, that's not what I said. What I said is the law and order, the old legal cases has to be pursued. The judicial system in this country is totally independent.
We in the executive arm of this government, we would like the Sadrite trend: his followers, his lieutenants, those who have not been incriminated and accused by -- for killing or for violating the law, and disturbance or using any sort of violence, we would like to incorporate them. And reintegrate them into the society and into the political process.
KAGAN: And that includes, and my final question, that would include to Muqtada al-Sadr, as the leader of this movement?
AL-RUBAIE: Certainly it will include Muqtada al-Sadr. Because as far as we're concerned -- and I have not seen any warrant, arrest warrant against Muqtada al-Sadr you're referring to.
But the law is the law, and absolutely we will implement the law of the land. And if he has been accused of any criminal act, he will -- he should stand at trial. And he will be asked and he will be held accountable in front of an Iraqi judge.
KAGAN: I guess the next sign is, just trying to figure out where the man is. Mouwaffaq al-Rubaie, thank you for your time today.
AL-RUBAIE: Thank you very much.
KAGAN: Iraqi's national security advisor joining us live from Baghdad. Thank you, sir.
And we're going to take a break. We are back with a lot more news from New York City after this.
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KAGAN: We're standing by. The Department of Justice, John Ashcroft, the attorney general expecting to hold a news conference. We are getting word it could begin in the next couple of minutes.
We'll bring that to you live, as it begins here on CNN. Right now, another break.
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KAGAN: All right. We're looking at Attorney General John Ashcroft at the Department of Justice. Let's listen.
(BEGIN LIVE NEWS EVENT)
JOHN ASHCROFT, U.S. ATTORNEY GENERAL: Good morning. Today I'm joined by Chris Wray, the assistant attorney general from the criminal division -- Chris, thank you for being here -- Patrick Fitzgerald who is the United States attorney for the Northern District of Illinois, and Don Vandine (ph), deputy assistant director of the FBI. Don, thank you for coming.
Earlier this morning, an indictment by a federal grand jury in Chicago was unsealed. Three men who allegedly ran a U.S.-based terrorist recruiting and financing cell associated with foreign terrorist organization Hamas were indicted for their roles in a 15- year racketing conspiracy in the United States and abroad. This cell allegedly financed the activities of a terrorist organization that was murdering innocent victims abroad, including American citizens. Muhammad Salah of suburban Chicago, Abdelhaleem Hasan Ashqar of suburban Washington, D.C., were arrested last night.
An arrest warrant was issued for the third defendant, Mousa Abu Marzook who formerly lived in Louisiana and northern Virginia, and who now resides in Damascus, Syria. And Marzook will be considered a fugitive from justice.
All three are charged with racketeering conspiracy for allegedly conducting, with named and unnamed co-conspirators, the affairs of Hamas. Hamas has been designated a foreign terrorist organization by the State Department, designated since 1997.
The racketeering acts that Hamas enterprise allegedly agreed to commit include multiple solicitations of first-degree murder; conspiracy to kill, kidnap, maim and injure persons in a foreign country; material support of terrorism; hostage-taking and money- laundering.
Defendant Salah is also charged with providing material support, including money and personnel, to a terrorist organization.
According to the indictment, in 1999, Salah directed and financed the travel of a Chicago-based associate to scout potential terrorist targets in Israel.
Defendants Salah and Ashqar are also charged with obstruction of justice.
Salah is alleged to have provided sworn answers that he knew to be false in a civil suit involving the murder of an American in the West Bank. It is alleged that in February 1998, in New York, and again in June 2003, in Chicago, Ashqar, in an effort to hide his and co-conspirators Hamas' activities, refused to testify before a grand jury despite a grant of immunity.
This indictment also seeks forfeiture of approximately $2.7 million from accounts in the defendants' control.
Now, I want to note, as I always do, that an indictment contains only charges, and the indictment itself is not evidence of guilt. The defendants are presumed innocent until proven guilty.
I would also note that this indictment is not a reflection on the well-meaning people who practice the Muslim faith. This is an indictment of individuals for acts that are specified in the indictment.
Throughout the 1990s, Hamas members publicly claimed credit for multiple terrorist attacks that resulted in the death of numerous civilians and military personnel in Israel.
Just a few of the attacks that are cited in the indictment for which Hamas took credit are as follows: an April 1994 car bombing in Israel, killing eight Israelis; a February 1996 suicide bombing in Jerusalem that killed 24 Israelis and two Americans; a May 1996 drive- by shooting at students in the West Bank in which American student David Boim was killed; and two suicide bombings in July 1997 in Jerusalem that killed 16 Israelis.
According to the indictment, between 1989 and January 1993, Salah traveled throughout the United States, Israel and the West Bank meeting with Hamas representatives. During these travels, he is alleged to have recruited and trained new members of Hamas, and distributed hundreds of thousands of dollars in order to support Hamas members and activities.
In September 1992, for example, the indictment alleges that Salah traveled to the West Bank where he met with Hamas leaders. There, Salah was allegedly informed that Hamas had approximately 53 recruits prepared to carry out terrorist attacks, but that funding was needed to assist them.
The indictment alleges that Salah agreed to pass on the request for money to Marzook and others. It is alleged that on this trip Salah provided money for the purchase of weapons by writing 10 checks, each for $5,000, from one of his Chicago bank accounts. He then cashed those checks in Israel.
In the following three months, Hamas members publicly claimed credit for eight different terrorist attacks that resulted in the deaths of numerous Israeli civilians and military personnel.
Defendant Marzook is alleged to be the deputy chief of Hamas political bureau, which functions as the leadership body for Hamas, including coordinating terrorist attacks by Hamas.
From 1988 until February 1993, while living in America, Marzook allegedly coordinated and financed the activities of Hamas within the United States and elsewhere. The indictment alleges that during this time, Marzook also maintained numerous bank accounts in such places as Ohio, Wisconsin, New York, Louisiana, Mississippi and Virginia.
To aid Hamas, substantial sums of money, sometimes in the hundreds of thousands of dollars were allegedly transferred in and out of these accounts as well as overseas accounts for disbursements inside and outside the United States.
Both Marzook and Salah had previously been designated as specially designated terrorists by the Treasury Department's Office of Foreign Asset Control.
Defendant Ashqar initially entered the United States as a graduate student at the University of Mississippi in Oxford. The indictment alleges that from 1989 on, Ashqar functioned as a conduit of money for Hamas and as an administrator for the terrorist network. He allegedly participated in Hamas meetings in the United States and in a number of phone conversations about Hamas' plans. Sometimes these calls were in code.
The individuals named in this indictment are alleged to have played a substantial role in financing and supporting international terrorism. They are alleged to be material supporters of a foreign terrorist organization, taking advantage of the freedoms of an open society to foster and finance acts of terror.
The United States makes no distinction between those who carry out terrorist attacks and those who knowingly finance, manage or supervise terrorist organizations.
This case would have been much more difficult to bring were it not for information-sharing authorized by the USA Patriot Act. Information gathered by the intelligence community and now shared with law enforcement was critical in completing this investigation and bringing this indictment.
I thank Assistant Attorney General Chris Wray. I also express my appreciation to U.S. Attorney Patrick Fitzgerald. And I commend the efforts of the Federal Bureau of Investigation.
Don, thank you for being here representing them. I commend their efforts in this case.
I would be pleased to welcome your questions.
QUESTION: What can you tell us about the efforts to apprehend Mr. Marzook? Do we believe he's in Syria? And what sort of arrest warrant...
(END LIVE NEWS EVENT)
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