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Intelligence Reform; Preparing for Protests; Peace Deal in Najaf

Aired August 27, 2004 - 10:59   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: President Bush is putting the legal machinery into motion today to bring about one of the 9/11 Commission's top recommendations, the post of national intelligence director. Let's start the hour with intelligence reform and White House correspondent Suzanne Malveaux.
Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

Well, President Bush is going to sign executive orders, signing off to implement some of those recommendations from the 9/11 Commission. Essentially, we are expecting the president is not going to make any special announcements about it. There's not going to be a ceremony. It's going to happen rather quietly, although the White House will hold briefings later on in the afternoon to give us some details on this.

Now, this is while the White House continues to negotiate with Congress over how to create a powerful new position, this national intelligence director. These presidential directives would immediately put in motion steps that the president endorsed back in August 2.

First, it would establish a national counterterrorism center. This is a kind of warehouse for intelligence analysis. Also, it would give the CIA director greater interim power to perform some of those duties from the national intelligence director that would take on a later date, including oversight of all 15 of those intelligence agencies. And finally, it would establish guidelines for greater sharing of intelligence among those agencies.

Now, Daryn, of course, the big question here, the very unresolved question, is what does this mean in terms of budget authority? Now, this is something that Congress has to sign off on. So it is very unclear just what kind of power, real power this position is going to have.

The White House pushing for it. They say within the limits of the law, the boundaries of the law, that they want personnel, as well as budgetary authority, to go to that individual -- Daryn.

KAGAN: Yes, which brings to mind my question. That is, we're saying that he's going to implement one of the 9/11 Commission recommendations, but not if it's not exactly as powerful as described in that report.

MALVEAUX: Well, here's what they're hoping to do. They're hoping to bolster, to enhance the power of the director of the CIA in the meantime, while they negotiate with Congress over what their parameters are going to be for the powerful new position, the national intelligence director. Until that happens, they hope at least to transfer some of that power, to give the CIA director some of that power so that they can begin to coordinate those efforts with those 15 intelligence agencies to improve on the communication, to get things at least moving forward.

KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you.

Madison Square Garden will be the center -- Madison Square Garden will be the center of the political universe next week. Here is a satellite view from space to show you what that looks like. Buckle your seatbelts for this one.

The circle in the middle there, that is the core of the Big Apple, Madison Square Garden. It is also the site of Penn Station, one of the busiest hubs in Manhattan.

Police in New York and a protest group have agreed on the city's Union Square Park for a Sunday rally. It's expected to attract a quarter of a million people. That rally is just one of nearly 30 protests timed around next week's GOP convention. Our Jeanne Meserve looks at how police are getting ready for the protesters.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): It was another war, Vietnam, that brought protesters to the streets outside the Chicago Democratic convention in 1968. The violence there and elsewhere has led police to adopt a different approach to demonstrators.

JEFFREY KERN, VANCE INTERNATIONAL DECISION STRATEGIES: It's based upon not on force, but a practical level on advance work, preparation and intelligence, finding out how many -- exactly how many people are expected, what are their goals, what do they want to accomplish?

UNIDENTIFIED MALE: Isolate, isolate, isolate, isolate, isolate...

MESERVE: In New York, the preparation has included drills with mock protesters and information-gathering using the Internet and undercover operations.

COMMISSIONER RAY KELLY, NEW YORK POLICE: Maybe as many as 1,000 or 1,500 people will come here bent on causing a problem.

MESERVE: The most violence protesters bring their own tactics and tools, including these dangerous wrist rockets. Police say they will move quickly to isolate and arrest troublemakers. ASST. CHIEF JACK MCMANUS, NEW YORK POLICE: How tough we will be? When you have a large group of people that disrupt either pedestrian or vehicular traffic or destroy property, there's not a lot of time for diplomacy there. So we're prepared to move in very quickly and effect arrests.

UNIDENTIFIED MALE: It's important not to block traffic on a sidewalk or street as well.

MESERVE: Mainstream protest groups are training legal observers to monitor a police force that in the past has been accused of trying to limit protests and free speech, for instance, with the use of pens.

DONNA LIEBERMAN, NY CIVIL LIBERTIES UNION: The police have the right to regulate to protect the law and order. But they don't have a right to turn you into a prisoner simply because you're exercising your right to protest.

MESERVE: Estimates of the number of protesters in New York range into the hundreds of thousands. The vast majority are expected to be peaceful. But the NYPD says it is ready for whatever the next week may bring.

Jeanne Meserve, CNN, New York.

(END VIDEOTAPE)

KAGAN: So, despite all that security, are New Yorkers still nervous? Well, let's take a look.

There's a new "New York Times"-CBS News poll that finds more than half of New York City residents are worried about a terrorist attack. And nearly half think protests will lead to violence.

Contrast that with the GOP delegates. Only 31 percent of them believe a terrorist attack is imminent. And 86 percent say New York is a good choice for a convention.

CNN will have live extensive coverage of the convention beginning with the Sunday prime-time line-up to set the stage. Eight Eastern, CNN presents "The Mission of George W. Bush." Larry King follows with a live convention preview. And then at 10:00 Eastern, CNN's Wolf Blitzer hosts "America votes 2004."

And now to Iraq, and the relative calm among the ruins in the battle-scarred city of Najaf. A deal designed to end a bloody three- week standoff is in place today. The peace agreement was brokered by Iraq's most powerful Shiite cleric, Grand Ayatollah Ali al-Sistani. Our John Vause is tracking developments in Iraq, and he joins us live from Baghdad with the latest -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn.

As the sun sets here in Iraq, it sets on a city of Najaf, which for the first time in three weeks has had a quiet day. Earlier, loudspeakers broadcast an announcement on behalf of the radical cleric Muqtada al-Sadr at the Imam Ali shrine, calling on his Mehdi militia to lay down their weapons and leave that holy site.

The mosque is now deserted. It has been locked shut.

U.S. forces, too, have begun to pull back. Humvees replacing tanks surrounding the compound. But before that, thousands -- thousands of pilgrims marched on the shrine to celebrate the end of the fighting after a deal was brokered by the Grand Ayatollah al- Sistani. He returned to Najaf yesterday, and within hours he held a face-to-face meeting with Muqtada al-Sadr.

Now, part of that peace deal negotiated by Sistani sees Iraqi police take responsibility for the mosque's security, and the Iraqi government has agreed to pay to repair all those buildings and homes which have been so badly damaged after three weeks of intense fighting. It was a deadly day leading up to this peace deal.

The Iraqi Health Ministry says 110 people were killed and 500 wounded in Najaf and Kufa alone. It remains to be seen what will happen in the days and weeks ahead. The last cease-fire negotiated in Najaf lasted just six weeks.

And members of the Mehdi militia are reportedly taking their weapons home, at least some of them. And a spokesperson for al-Sadr says, while the Mehdi militia has been disarmed, it has not been disbanded.

As for Muqtada al-Sadr and his fighters, they have received an amnesty. The Iraqi government says they are free to go wherever they want. And while this crisis in Najaf may have passed, the Iraqi government here is still facing unrest.

In the city of Mosul, there was a car bomb which exploded near a U.S. convoy, injuring eight civilians, as well as a U.S. soldier. And here in central Baghdad, there were explosions and gunfire, and 12 U.S. soldiers were wounded in three separate grenade attacks -- Daryn.

KAGAN: John, it is remarkable to watch this happen and to see the incredible power of the grand ayatollah, especially when you compare it to the interim government and what seems to be a lack of power on its part.

VAUSE: Very much so. And after the last 24 hours, it seems that the Grand Ayatollah al-Sistani is now emerging, certainly at the moment, as the most powerful man in Iraq.

He managed to bring that cease-fire, put that in place in just a matter of hours after all of the efforts by the interim Iraqi government, and also by other Iraqis, by tribal leaders, by Shiite leaders, by that delegation which went to the shrine to try and meet with Muqtada al-Sadr. None of them had any success.

The grand ayatollah arrived in Najaf, and within hours there was this peace plan put in place. But certainly we must watch and see what happens in Najaf.

That cease-fire which was negotiated back in June, it was largely seen as the work of Sistani back then. And Muqtada al-Sadr, that broke down within just a matter of weeks. So whether or not Muqtada al-Sadr holds up his side of the bargain is the unknown in all of this. It remains to be seen.

KAGAN: John Vause in Baghdad. John, thank you.

And so it begins. Jury selection in the Kobe Bryant case is getting under way today. A look at what we can expect from there.

Also, it's a problem of biblical proportions. Locusts descend on an unsuspecting town.

And later, dealing with a massive influx of alien culture before, but this is different. Are New Yorkers and Republicans really worlds apart? Find out what a pretty funny survey says. That is coming up.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: International gymnastics officials are asking American Paul Hamm to give up his gold medal. Sports correspondent Mark McKay is in Athens with more on this.

Mark, absolutely incredible news.

MARK MCKAY, CNN CORRESPONDENT: Yes, Daryn. You can't confuse the United States Olympic Committee with the United States Post Office because they deliver only if they deem it appropriate. Here's the deal...

In this case, the USOC decided not to deliver a letter to gymnast Paul Hamm from the International Gymnastics Federation. It came down just this afternoon here in Athens. The president of the International Gymnastics Federation tried to send a letter to the U.S. gymnast, Hamm, suggesting that the federation's boss said, "It would be recognized as the ultimate demonstration of fair play," if Hamm gives his gold medal to the South Korean who won bronze.

It's a well-documented case that we followed for the better part of this second week of the summer games. A judging error caused the commotion, which was ratcheted up a notch on Friday when the USOC released the letter to reporters.

(BEGIN VIDEO CLIP)

JIM SCHERR, USOC CHIEF EXECUTIVE: The responsibility for the administration of the technical rules and the results of the sport are those of the International Federation, in this case, the FIG. The responsibility for this issue and controversy lies with the FIG and their administration of their rules.

The suggestion that Paul Hamm can solve their problems and the technical issues they have with the judging rules and how they've administered the support for this competition is absolutely improper and should never have been suggested by the FIG. Therefore, as I have stated, we have rejected their proposal and we will not deliver this letter nor suggestion to Paul.

(END VIDEO CLIP)

MCKAY: Now, early this morning here in Athens, International Olympic Committee president Jacques Rogge got involved in the matter by saying that no duplicate medals will be awarded at these games because of resulting errors in either judging or in the equestrian event. There have been timing errors and the Germans want to get back a couple of gold medals there that they lost.

We haven't heard, Daryn, from Paul Hamm himself. We know he's back on U.S. soil. Perhaps we'll hear from him in the coming hours, if not days, concerning this new chapter.

KAGAN: Well, Mark, your wish is my command, because it turns out Paul Hamm is in New York City, and Anderson Cooper was able to track him down and talk with him. So let's listen to a sound bite from Paul Hamm.

(BEGIN VIDEO CLIP)

PAUL HAMM, OLYMPIC GOLD MEDALIST: You know, I -- for me personally I went to the Olympics just trying to make my country proud of everything that I had, you know, done in my life as far as gymnastics. And I did my job. I competed my heart out. I followed all the rules. And then to have the governing bodies sort of putting the pressure on me to make these decisions kind of made me feel that I had been just left out there by myself.

(END VIDEO CLIP)

KAGAN: So there you hear it. That's Paul Hamm. That was his identical twin brother, Morgan, sitting next to him. I don't think you can see -- you can see that. But it sounds like Paul Hamm is holding on to that gold medal -- Mark.

MCKAY: And that's exactly what he told CNN Sports here in Athens this week, Daryn. He said he did everything he went out to do.

He felt in his heart, he feels in his heart he is the gold medal winner, and because of a judging error it shouldn't be taken away from him. He says that, you know, he came here to prove his sporting prowess to the American people, and he's come back a champion. He has his head held high. And as far as he knows -- as we know, he's not going to give up that medal just yet to the South Korean.

KAGAN: All right. I bet you that this is going to be the story that people will be talking about all day. Mark McKay in -- in Athens, Greece. Thank you.

To get some perspective about how big of a deal it is that Paul Hamm is being asked to give back his gold medal, let's bring in Kurt Thomas. Gymnastics fans will recognize him as an internationally- renowned gymnast, now a coach with his own gymnastics center in Frisco, Texas. And Kurt joins us on the phone now from Frisco.

Kurt, thank you for being with us.

KURT THOMAS, FMR. GYMNASTICS WORLD CHAMP: Thank you.

KAGAN: Tell us your response to Paul Hamm being asked to give back his gold medal.

THOMAS: Well, I think it's absurd, actually. My side of it is, Paul is right.

He went there, he did his best, he actually was told he won. He walked in, he came back from a fall. He had the two best routines of his life. At the end, parallel bars and horizontal bar. And it put him up on the gold medal platform.

And then they go back and they review tapes and they look at start values. I mean, if you did that, you could go back to my Olympics and you could go back to the, you know, the early 1900s if you want. I mean, you can't go back and change things.

The South Koreans had a time frame in which to petition or inquire about this event that they question on start value, and they didn't do it in a timely fashion. It has to be done before the event is over, and they didn't do that.

Now, that's a technicality, yes, but, you know, I don't think you can put this on Paul. I think that, you know, he's right in what he's saying. He won the gold medal, and America has to understand that Paul did nothing wrong.

KAGAN: So here's the International Gymnastics Federation saying, if you would just give it up, Paul, this would be the ultimate in sportsmanship. You don't think so?

THOMAS: Well, there's been talk that if he gives up the medal he's the hero of the Olympics, if he gives up the medal then -- and, you know, what's it matter, it's just a gold medal. But, you know, when you work your whole life for something and you go up and you get this, and you come back from this adversity and you do everything that Paul did to make it and to be this sports hero, he is now being shut down.

He's being dropped down. And it's just something hard to do.

KAGAN: Well, if he keeps it, does it then become the gold medal with the asterisk? Well, he's the gold medalist, but, you know, when you add it up he really didn't win it?

THOMAS: Yes. In a way that's the case.

But, you know, I can tell you from watching the Olympics, from watching everything that's going on, look at these athletes and how they train and what they sacrifice. And to get it, and to put it in front of you, and then just say give it back because of a technicality -- and really, when you look at the routines going back, if you look at his routine, the fact of the matter is Miles Avery said that he had four holds on his parallel bar routine.

If you actually go back to the routine and look at it, he had a two-tenths deduction on his four holds. So it's really not accurate.

KAGAN: And is this -- since you have lived, you have grown up, the gymnastics world has been your whole life, Kurt, is this just a symptom of a bigger problem in the world of gymnastics, or is this a fluke?

THOMAS: No, it's a symptom of a bigger problem in gymnastics. We have to do something about the officiating. And we have to work on -- making this better.

I'm not sure I have the answer, but I think that they've got to work on making this so that this doesn't ever happen again. And you can't put these athletes at this type of risk.

KAGAN: And just finally, what would you say to the young South Korean, Yang Tae-young?

THOMAS: I'd say, congratulations, you're a champion in your own way, and this is the way the chips fall.

KAGAN: Understood. And I know that you understand what it means to be a young gymnast caught up in international politics, since 1980 you would have gone to the Olympics, but the U.S. didn't go because of the boycott. It is so disappointing to be a young person training and focusing on something and get caught up in something completely beyond your control.

THOMAS: Exactly. That's why I feel even more for Paul.

KAGAN: Kurt Thomas, thank you so much for calling in. Appreciate the insight.

THOMAS: Thank you.

KAGAN: Once again, Paul Hamm, the Olympic gold medalist, being asked by the International Gymnastics Federation, give back your gold medal. Doesn't look like he plans on doing that.

We're going to take a break. A lot more news is up after this.

(COMMERCIAL BREAK)

KAGAN: OK. A little reversal on an old saying now. A Florida man is actually his dog's best friend.

Matthew Goff saved his dog Sugar from a vicious attack on Wednesday. The two were walking past a pond -- they are in Gainesville, Florida -- when suddenly a five or six-foot-long alligator grabbed Sugar by the head and pulled him into the water. That is when Goff went into action.

(BEGIN VIDEO CLIP) MATTHEW GOFF, SAVED DOG FROM ALLIGATOR: Without even thinking, I just -- I jumped in the water, I jumped on the gator's back, I stabbed him in the throat, which didn't really seem to phase him. And then I stabbed him in what I think was his eye. And then he let go.

(END VIDEO CLIP)

KAGAN: It turns out Goff carries a four-inch knife for work. He and Sugar are both a little bit scratched up. Authorities plan to hunt down the gator today. You go, Sugar.

All right. If Republicans are from Mars, New Yorkers are, well, from -- they're from New York. So says one magazine. Can the Manhattan melting pot handle 40,000 conservative conventioneers?

Oh, it's going to be an interesting week. Find out what a new survey says about that coming up next.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's check what is happening "Now in the News" for Friday, August 27.

Najaf is calm today as a peace deal appears to be taking hold. Fighters loyal to radical cleric Muqtada al-Sadr turned over weapons and left the Imam Ali shrine. Iraqi police took up positions around the mosque as U.S. troops are further back.

President Bush is expected to sign executive orders today creating the post of national intelligence director. That was one of the top recommendations of the 9/11 Commission.

And then there's this: international gymnastic officials are asking American Paul Hamm to give up his Olympic gold medal due to a scoring error. U.S. Olympic officials blocked that request, saying judges made the mistake, not Hamm, and the medal will stand.

(BEGIN VIDEO CLIP)

PETER UEBERROTH, USOC CHAIRMAN: We've reviewed the action of the International Gymnastics Federation, and we think it's deplorable. Their deflecting their own incompetence and their problem to a young athlete who simply came here to compete in the Olympic games.

He competed very, very well. He was awarded the gold medal. And they continue to cause him grief. And we're here to back him also.

(END VIDEO CLIP)

KAGAN: Keeping you informed, this is CNN, the most trusted name in news.

President Bush is asking Congress for more money for Florida today to repair damage from Hurricane Charley. Then he kicks off his final campaign blitz before the Republican convention. He attends a rally in Miami later this afternoon. Mr. Bush will visit seven key battleground states before arriving at the convention in New York next week.

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 August 27, 2004 - 10:59   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: President Bush is putting the legal machinery into motion today to bring about one of the 9/11 Commission's top recommendations, the post of national intelligence director. Let's start the hour with intelligence reform and White House correspondent Suzanne Malveaux.
Suzanne, good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

Well, President Bush is going to sign executive orders, signing off to implement some of those recommendations from the 9/11 Commission. Essentially, we are expecting the president is not going to make any special announcements about it. There's not going to be a ceremony. It's going to happen rather quietly, although the White House will hold briefings later on in the afternoon to give us some details on this.

Now, this is while the White House continues to negotiate with Congress over how to create a powerful new position, this national intelligence director. These presidential directives would immediately put in motion steps that the president endorsed back in August 2.

First, it would establish a national counterterrorism center. This is a kind of warehouse for intelligence analysis. Also, it would give the CIA director greater interim power to perform some of those duties from the national intelligence director that would take on a later date, including oversight of all 15 of those intelligence agencies. And finally, it would establish guidelines for greater sharing of intelligence among those agencies.

Now, Daryn, of course, the big question here, the very unresolved question, is what does this mean in terms of budget authority? Now, this is something that Congress has to sign off on. So it is very unclear just what kind of power, real power this position is going to have.

The White House pushing for it. They say within the limits of the law, the boundaries of the law, that they want personnel, as well as budgetary authority, to go to that individual -- Daryn.

KAGAN: Yes, which brings to mind my question. That is, we're saying that he's going to implement one of the 9/11 Commission recommendations, but not if it's not exactly as powerful as described in that report.

MALVEAUX: Well, here's what they're hoping to do. They're hoping to bolster, to enhance the power of the director of the CIA in the meantime, while they negotiate with Congress over what their parameters are going to be for the powerful new position, the national intelligence director. Until that happens, they hope at least to transfer some of that power, to give the CIA director some of that power so that they can begin to coordinate those efforts with those 15 intelligence agencies to improve on the communication, to get things at least moving forward.

KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you.

Madison Square Garden will be the center -- Madison Square Garden will be the center of the political universe next week. Here is a satellite view from space to show you what that looks like. Buckle your seatbelts for this one.

The circle in the middle there, that is the core of the Big Apple, Madison Square Garden. It is also the site of Penn Station, one of the busiest hubs in Manhattan.

Police in New York and a protest group have agreed on the city's Union Square Park for a Sunday rally. It's expected to attract a quarter of a million people. That rally is just one of nearly 30 protests timed around next week's GOP convention. Our Jeanne Meserve looks at how police are getting ready for the protesters.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): It was another war, Vietnam, that brought protesters to the streets outside the Chicago Democratic convention in 1968. The violence there and elsewhere has led police to adopt a different approach to demonstrators.

JEFFREY KERN, VANCE INTERNATIONAL DECISION STRATEGIES: It's based upon not on force, but a practical level on advance work, preparation and intelligence, finding out how many -- exactly how many people are expected, what are their goals, what do they want to accomplish?

UNIDENTIFIED MALE: Isolate, isolate, isolate, isolate, isolate...

MESERVE: In New York, the preparation has included drills with mock protesters and information-gathering using the Internet and undercover operations.

COMMISSIONER RAY KELLY, NEW YORK POLICE: Maybe as many as 1,000 or 1,500 people will come here bent on causing a problem.

MESERVE: The most violence protesters bring their own tactics and tools, including these dangerous wrist rockets. Police say they will move quickly to isolate and arrest troublemakers. ASST. CHIEF JACK MCMANUS, NEW YORK POLICE: How tough we will be? When you have a large group of people that disrupt either pedestrian or vehicular traffic or destroy property, there's not a lot of time for diplomacy there. So we're prepared to move in very quickly and effect arrests.

UNIDENTIFIED MALE: It's important not to block traffic on a sidewalk or street as well.

MESERVE: Mainstream protest groups are training legal observers to monitor a police force that in the past has been accused of trying to limit protests and free speech, for instance, with the use of pens.

DONNA LIEBERMAN, NY CIVIL LIBERTIES UNION: The police have the right to regulate to protect the law and order. But they don't have a right to turn you into a prisoner simply because you're exercising your right to protest.

MESERVE: Estimates of the number of protesters in New York range into the hundreds of thousands. The vast majority are expected to be peaceful. But the NYPD says it is ready for whatever the next week may bring.

Jeanne Meserve, CNN, New York.

(END VIDEOTAPE)

KAGAN: So, despite all that security, are New Yorkers still nervous? Well, let's take a look.

There's a new "New York Times"-CBS News poll that finds more than half of New York City residents are worried about a terrorist attack. And nearly half think protests will lead to violence.

Contrast that with the GOP delegates. Only 31 percent of them believe a terrorist attack is imminent. And 86 percent say New York is a good choice for a convention.

CNN will have live extensive coverage of the convention beginning with the Sunday prime-time line-up to set the stage. Eight Eastern, CNN presents "The Mission of George W. Bush." Larry King follows with a live convention preview. And then at 10:00 Eastern, CNN's Wolf Blitzer hosts "America votes 2004."

And now to Iraq, and the relative calm among the ruins in the battle-scarred city of Najaf. A deal designed to end a bloody three- week standoff is in place today. The peace agreement was brokered by Iraq's most powerful Shiite cleric, Grand Ayatollah Ali al-Sistani. Our John Vause is tracking developments in Iraq, and he joins us live from Baghdad with the latest -- John.

JOHN VAUSE, CNN CORRESPONDENT: Hello, Daryn.

As the sun sets here in Iraq, it sets on a city of Najaf, which for the first time in three weeks has had a quiet day. Earlier, loudspeakers broadcast an announcement on behalf of the radical cleric Muqtada al-Sadr at the Imam Ali shrine, calling on his Mehdi militia to lay down their weapons and leave that holy site.

The mosque is now deserted. It has been locked shut.

U.S. forces, too, have begun to pull back. Humvees replacing tanks surrounding the compound. But before that, thousands -- thousands of pilgrims marched on the shrine to celebrate the end of the fighting after a deal was brokered by the Grand Ayatollah al- Sistani. He returned to Najaf yesterday, and within hours he held a face-to-face meeting with Muqtada al-Sadr.

Now, part of that peace deal negotiated by Sistani sees Iraqi police take responsibility for the mosque's security, and the Iraqi government has agreed to pay to repair all those buildings and homes which have been so badly damaged after three weeks of intense fighting. It was a deadly day leading up to this peace deal.

The Iraqi Health Ministry says 110 people were killed and 500 wounded in Najaf and Kufa alone. It remains to be seen what will happen in the days and weeks ahead. The last cease-fire negotiated in Najaf lasted just six weeks.

And members of the Mehdi militia are reportedly taking their weapons home, at least some of them. And a spokesperson for al-Sadr says, while the Mehdi militia has been disarmed, it has not been disbanded.

As for Muqtada al-Sadr and his fighters, they have received an amnesty. The Iraqi government says they are free to go wherever they want. And while this crisis in Najaf may have passed, the Iraqi government here is still facing unrest.

In the city of Mosul, there was a car bomb which exploded near a U.S. convoy, injuring eight civilians, as well as a U.S. soldier. And here in central Baghdad, there were explosions and gunfire, and 12 U.S. soldiers were wounded in three separate grenade attacks -- Daryn.

KAGAN: John, it is remarkable to watch this happen and to see the incredible power of the grand ayatollah, especially when you compare it to the interim government and what seems to be a lack of power on its part.

VAUSE: Very much so. And after the last 24 hours, it seems that the Grand Ayatollah al-Sistani is now emerging, certainly at the moment, as the most powerful man in Iraq.

He managed to bring that cease-fire, put that in place in just a matter of hours after all of the efforts by the interim Iraqi government, and also by other Iraqis, by tribal leaders, by Shiite leaders, by that delegation which went to the shrine to try and meet with Muqtada al-Sadr. None of them had any success.

The grand ayatollah arrived in Najaf, and within hours there was this peace plan put in place. But certainly we must watch and see what happens in Najaf.

That cease-fire which was negotiated back in June, it was largely seen as the work of Sistani back then. And Muqtada al-Sadr, that broke down within just a matter of weeks. So whether or not Muqtada al-Sadr holds up his side of the bargain is the unknown in all of this. It remains to be seen.

KAGAN: John Vause in Baghdad. John, thank you.

And so it begins. Jury selection in the Kobe Bryant case is getting under way today. A look at what we can expect from there.

Also, it's a problem of biblical proportions. Locusts descend on an unsuspecting town.

And later, dealing with a massive influx of alien culture before, but this is different. Are New Yorkers and Republicans really worlds apart? Find out what a pretty funny survey says. That is coming up.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: International gymnastics officials are asking American Paul Hamm to give up his gold medal. Sports correspondent Mark McKay is in Athens with more on this.

Mark, absolutely incredible news.

MARK MCKAY, CNN CORRESPONDENT: Yes, Daryn. You can't confuse the United States Olympic Committee with the United States Post Office because they deliver only if they deem it appropriate. Here's the deal...

In this case, the USOC decided not to deliver a letter to gymnast Paul Hamm from the International Gymnastics Federation. It came down just this afternoon here in Athens. The president of the International Gymnastics Federation tried to send a letter to the U.S. gymnast, Hamm, suggesting that the federation's boss said, "It would be recognized as the ultimate demonstration of fair play," if Hamm gives his gold medal to the South Korean who won bronze.

It's a well-documented case that we followed for the better part of this second week of the summer games. A judging error caused the commotion, which was ratcheted up a notch on Friday when the USOC released the letter to reporters.

(BEGIN VIDEO CLIP)

JIM SCHERR, USOC CHIEF EXECUTIVE: The responsibility for the administration of the technical rules and the results of the sport are those of the International Federation, in this case, the FIG. The responsibility for this issue and controversy lies with the FIG and their administration of their rules.

The suggestion that Paul Hamm can solve their problems and the technical issues they have with the judging rules and how they've administered the support for this competition is absolutely improper and should never have been suggested by the FIG. Therefore, as I have stated, we have rejected their proposal and we will not deliver this letter nor suggestion to Paul.

(END VIDEO CLIP)

MCKAY: Now, early this morning here in Athens, International Olympic Committee president Jacques Rogge got involved in the matter by saying that no duplicate medals will be awarded at these games because of resulting errors in either judging or in the equestrian event. There have been timing errors and the Germans want to get back a couple of gold medals there that they lost.

We haven't heard, Daryn, from Paul Hamm himself. We know he's back on U.S. soil. Perhaps we'll hear from him in the coming hours, if not days, concerning this new chapter.

KAGAN: Well, Mark, your wish is my command, because it turns out Paul Hamm is in New York City, and Anderson Cooper was able to track him down and talk with him. So let's listen to a sound bite from Paul Hamm.

(BEGIN VIDEO CLIP)

PAUL HAMM, OLYMPIC GOLD MEDALIST: You know, I -- for me personally I went to the Olympics just trying to make my country proud of everything that I had, you know, done in my life as far as gymnastics. And I did my job. I competed my heart out. I followed all the rules. And then to have the governing bodies sort of putting the pressure on me to make these decisions kind of made me feel that I had been just left out there by myself.

(END VIDEO CLIP)

KAGAN: So there you hear it. That's Paul Hamm. That was his identical twin brother, Morgan, sitting next to him. I don't think you can see -- you can see that. But it sounds like Paul Hamm is holding on to that gold medal -- Mark.

MCKAY: And that's exactly what he told CNN Sports here in Athens this week, Daryn. He said he did everything he went out to do.

He felt in his heart, he feels in his heart he is the gold medal winner, and because of a judging error it shouldn't be taken away from him. He says that, you know, he came here to prove his sporting prowess to the American people, and he's come back a champion. He has his head held high. And as far as he knows -- as we know, he's not going to give up that medal just yet to the South Korean.

KAGAN: All right. I bet you that this is going to be the story that people will be talking about all day. Mark McKay in -- in Athens, Greece. Thank you.

To get some perspective about how big of a deal it is that Paul Hamm is being asked to give back his gold medal, let's bring in Kurt Thomas. Gymnastics fans will recognize him as an internationally- renowned gymnast, now a coach with his own gymnastics center in Frisco, Texas. And Kurt joins us on the phone now from Frisco.

Kurt, thank you for being with us.

KURT THOMAS, FMR. GYMNASTICS WORLD CHAMP: Thank you.

KAGAN: Tell us your response to Paul Hamm being asked to give back his gold medal.

THOMAS: Well, I think it's absurd, actually. My side of it is, Paul is right.

He went there, he did his best, he actually was told he won. He walked in, he came back from a fall. He had the two best routines of his life. At the end, parallel bars and horizontal bar. And it put him up on the gold medal platform.

And then they go back and they review tapes and they look at start values. I mean, if you did that, you could go back to my Olympics and you could go back to the, you know, the early 1900s if you want. I mean, you can't go back and change things.

The South Koreans had a time frame in which to petition or inquire about this event that they question on start value, and they didn't do it in a timely fashion. It has to be done before the event is over, and they didn't do that.

Now, that's a technicality, yes, but, you know, I don't think you can put this on Paul. I think that, you know, he's right in what he's saying. He won the gold medal, and America has to understand that Paul did nothing wrong.

KAGAN: So here's the International Gymnastics Federation saying, if you would just give it up, Paul, this would be the ultimate in sportsmanship. You don't think so?

THOMAS: Well, there's been talk that if he gives up the medal he's the hero of the Olympics, if he gives up the medal then -- and, you know, what's it matter, it's just a gold medal. But, you know, when you work your whole life for something and you go up and you get this, and you come back from this adversity and you do everything that Paul did to make it and to be this sports hero, he is now being shut down.

He's being dropped down. And it's just something hard to do.

KAGAN: Well, if he keeps it, does it then become the gold medal with the asterisk? Well, he's the gold medalist, but, you know, when you add it up he really didn't win it?

THOMAS: Yes. In a way that's the case.

But, you know, I can tell you from watching the Olympics, from watching everything that's going on, look at these athletes and how they train and what they sacrifice. And to get it, and to put it in front of you, and then just say give it back because of a technicality -- and really, when you look at the routines going back, if you look at his routine, the fact of the matter is Miles Avery said that he had four holds on his parallel bar routine.

If you actually go back to the routine and look at it, he had a two-tenths deduction on his four holds. So it's really not accurate.

KAGAN: And is this -- since you have lived, you have grown up, the gymnastics world has been your whole life, Kurt, is this just a symptom of a bigger problem in the world of gymnastics, or is this a fluke?

THOMAS: No, it's a symptom of a bigger problem in gymnastics. We have to do something about the officiating. And we have to work on -- making this better.

I'm not sure I have the answer, but I think that they've got to work on making this so that this doesn't ever happen again. And you can't put these athletes at this type of risk.

KAGAN: And just finally, what would you say to the young South Korean, Yang Tae-young?

THOMAS: I'd say, congratulations, you're a champion in your own way, and this is the way the chips fall.

KAGAN: Understood. And I know that you understand what it means to be a young gymnast caught up in international politics, since 1980 you would have gone to the Olympics, but the U.S. didn't go because of the boycott. It is so disappointing to be a young person training and focusing on something and get caught up in something completely beyond your control.

THOMAS: Exactly. That's why I feel even more for Paul.

KAGAN: Kurt Thomas, thank you so much for calling in. Appreciate the insight.

THOMAS: Thank you.

KAGAN: Once again, Paul Hamm, the Olympic gold medalist, being asked by the International Gymnastics Federation, give back your gold medal. Doesn't look like he plans on doing that.

We're going to take a break. A lot more news is up after this.

(COMMERCIAL BREAK)

KAGAN: OK. A little reversal on an old saying now. A Florida man is actually his dog's best friend.

Matthew Goff saved his dog Sugar from a vicious attack on Wednesday. The two were walking past a pond -- they are in Gainesville, Florida -- when suddenly a five or six-foot-long alligator grabbed Sugar by the head and pulled him into the water. That is when Goff went into action.

(BEGIN VIDEO CLIP) MATTHEW GOFF, SAVED DOG FROM ALLIGATOR: Without even thinking, I just -- I jumped in the water, I jumped on the gator's back, I stabbed him in the throat, which didn't really seem to phase him. And then I stabbed him in what I think was his eye. And then he let go.

(END VIDEO CLIP)

KAGAN: It turns out Goff carries a four-inch knife for work. He and Sugar are both a little bit scratched up. Authorities plan to hunt down the gator today. You go, Sugar.

All right. If Republicans are from Mars, New Yorkers are, well, from -- they're from New York. So says one magazine. Can the Manhattan melting pot handle 40,000 conservative conventioneers?

Oh, it's going to be an interesting week. Find out what a new survey says about that coming up next.

(COMMERCIAL BREAK)

KAGAN: I'm Daryn Kagan in Atlanta. Let's check what is happening "Now in the News" for Friday, August 27.

Najaf is calm today as a peace deal appears to be taking hold. Fighters loyal to radical cleric Muqtada al-Sadr turned over weapons and left the Imam Ali shrine. Iraqi police took up positions around the mosque as U.S. troops are further back.

President Bush is expected to sign executive orders today creating the post of national intelligence director. That was one of the top recommendations of the 9/11 Commission.

And then there's this: international gymnastic officials are asking American Paul Hamm to give up his Olympic gold medal due to a scoring error. U.S. Olympic officials blocked that request, saying judges made the mistake, not Hamm, and the medal will stand.

(BEGIN VIDEO CLIP)

PETER UEBERROTH, USOC CHAIRMAN: We've reviewed the action of the International Gymnastics Federation, and we think it's deplorable. Their deflecting their own incompetence and their problem to a young athlete who simply came here to compete in the Olympic games.

He competed very, very well. He was awarded the gold medal. And they continue to cause him grief. And we're here to back him also.

(END VIDEO CLIP)

KAGAN: Keeping you informed, this is CNN, the most trusted name in news.

President Bush is asking Congress for more money for Florida today to repair damage from Hurricane Charley. Then he kicks off his final campaign blitz before the Republican convention. He attends a rally in Miami later this afternoon. Mr. Bush will visit seven key battleground states before arriving at the convention in New York next week.

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