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Renewed Questions About Bush's Military Service; Joint U.S.- Iraqi Plan in Works to Launch Series of Offensives Aimed at Eliminating 'No-Go Zones' Across Iraq

Aired September 09, 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 headquarters here in Atlanta. I'm Daryn Kagan. As always, we start with a look at what is happening now in the news.
Hurricane Ivan is cutting through the Caribbean with maximum sustained winds of nearly 160 miles an hour. The storm is being blamed for at least four deaths, and possibly as many as 20 on Grenada. Ninety percent of the island's buildings were damaged. Officials say the hurricane destroyed Grenada's prison and all the prisoners escaped. Nervous emergency officials in the Florida Keys are ordering an evacuation of all residents and tourists.

U.S. forces launched a two-pronged attack on insurgents in Iraq early this morning. Iraqi health officials say 25 people were killed, and at least 70 wounded in Tal Afar. Six suspected insurgents were detained. And U.S. military officials say that an air strike in Fallujah targeted a building being used by followers of accused terrorist Abu Musab Zarqawi. Iraqi health officials say at least 10 people were killed including more children.

Back here in the U.S., more pressure on the Pentagon in the prison abuse scandal. Live pictures here from Capitol Hill The Senate and House Armed Services Committees are holding hearings today on the two latest reports ordered by the Defense Department. At the same time, a group of retired military officers is calling for an independent panel to investigate the scandal.

The maker and seller of the gun used in the D.C. area sniper attacks have settled a victim's lawsuit. Bush Master Firearms agreed to pay $550,000 and a Tacoma, Washington gun dealer agreed to pay $2 million. A judge will determine how to divide the settlement among two people injured in the shootings and the families of the six people who were killed.

Live this hour in Des Moines, Iowa, John Kerry stepping off the stage and into the center of the debate over health care. Right now, he's hosting a roundtable discussion. Then he moves on to a town hall meeting.

Three decades after U.S. troops withdrew from Vietnam, the conflict is raging again in the battleground of presidential politics. Today, there are newly uncovered documents and renewed questions about George W. Bush's military service.

Our Elaine Quijano is at the White House with more on that. Elaine, good morning.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Daryn. The White House continues to defend the president's conduct during the Vietnam era, amid more questions about his service in the Texas Air National Guard. Now, as you mentioned, some new memos obtained by CNN uncovering some new information indicating Mr. Bush's former commander felt pressure by higher-ups to give then Lieutenant Bush favorable evaluations. In one memo, the commander also speculates that when Mr. Bush was trying to transfer to in duty Alabama, he was, quote, "talking to someone upstairs."

Now, those memos first became public in a "60 Minutes" story last night. And in that same story in an interview, a Democrat from Texas says he helped Mr. Bush get into the Guard in the 1970s to curry political favor.

(BEGIN VIDEO CLIP)

BEN BARNES (D-TX), FMR. LIEUTENANT GOVERNOR: I recommended a lot of people for the National Guard during the Vietnam era, as speaker of the House and as lieutenant governor.

DAN RATHER, HOST, "60 MINUTES": And you recommended George W. Bush?

BARNES: Yes, I did.

I would describe it as preferential treatment. There were hundreds of names on the list of people wanting to get in the Air National Guard or the Army National Guard.

(END VIDEO CLIP)

QUIJANO: Now, a group called Texans for Truth is joining in the fray, launching ads suggest suggesting that Mr. Bush did not show up for duty when he was transferred to Alabama. The White House though, is denying that, citing dental and pay records as proof of his service. Officials here chalking up the accusations as partisan attacks that have surfaced before.

(BEGIN VIDEO CLIP)

DAN BARTLETT, WHITE HOUSE SPOKESMAN: Their strategy is now that President Bush is ahead in the polls and we're going to try to bring him down. So let's recycle old charges.

(END VIDEO CLIP)

QUIJANO: Now as for the memos, the administration insists they do not prove anything. But officials here, Daryn, are very mindful with less than two months to go until the election. And some polls showing a neck and neck race. There could be more attacks on this issue to come -- Daryn.

KAGAN: Elaine Quijano at the White House. Elaine, thank you. Meanwhile, Senator Kerry has campaigned exhaustively on his Vietnam combat decorations, and critics have relentlessly attacked the credibility of his claims. So, how will the Democrat approach this latest wrinkle in the issue of military service? We might find out very soon, as the senator is kicking off a day of campaigning in the Midwest.

Our congressional correspondent Ed Henry is in Des Moines, Iowa, one of the Democrat's stops.

Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Daryn. As you were just talking about the negative ads, the nasty charges about Vietnam, they are heating up once again. You will remember that Bill Clinton and other Democrats have talked to Senator Kerry about trying not to focus on 35 years ago, instead look at the future. And that's why this morning, John Kerry just arrived behind me about a moment ago, he's going to be having a roundtable discussion, as you mentioned. But also a town hall meeting focused on health care. He's trying to keep that focus on domestic issues, like health care, like the economy and education.

He's trying to stay kind of above the fray, not get in the middle of these negative attacks. And in fact, yesterday when he was asked about the president's National Guard service, John Kerry ducked a question about it. And when he delivered a speech in Cincinnati about Iraq, and was pretty harsh in his rhetoric about President Bush, it was focused on policy, not personal issues. It was focused on policy. That is what Kerry is trying to do. That appears to be his strategy at this point.

He is also -- the Kerry campaign will be unveiling new ads today in Pennsylvania, where President Bush will be campaigning. Those ads are going to be focused on domestic issues like health care. Again, he's trying to keep that focus, because Bill Clinton and other Democrats have said that he has to focus on bread and butter issues, not get mired in these attacks back and forth.

The other issue here is that while these negative ads are going on, Democratic officials, like Terry McAuliffe, the Democratic National Committee chairman, he came out yesterday and once again suggested that maybe President Bush did not serve honorably and perhaps he did not complete his service in the National Guard. There were obviously a lot of Republicans upset about those charges. But what you see are outside people, outside groups and outside officials launching these attacks against President Bush. Kerry trying to stay out of it.

But Republicans say that this Texans for Truth group is affiliated with moveon.org, the Democratic-leaning group. And they're saying John Kerry to not stay away from this completely. You'll remember, this sounds a bit familiar. Because it was only a couple of weeks ago that John Kerry, when the swift boat ads were out there at full strength, John Kerry was alleging that these groups were doing the dirty work for President Bush. You're now starting to hear Republicans say that Texans for Truth and others are doing the dirty work for John Kerry -- Daryn.

KAGAN: So a bunch of finger pointing go both ways. So is it necessary for the Kerry campaign then to distance itself and do what it was asking the Bush campaign to do?

HENRY: They're going to have to try to distance themselves as much as possible. And you can bet that the Bush campaign, at some point, is very likely to start asking when will John Kerry denounce these Texans for Truth ads. The Democrats made a lot of hay about that very subject. As you mentioned, trying to get President Bush to denounce the swift boat ads. You can bet Republicans are going to be coming back. They think Democrats are trying to turn the tables because John Kerry's poll numbers came down after those swift boat ads -- Daryn.

KAGAN: And Ed, isn't this kind of a mixed blessing for John Kerry? Because it sounds like the campaign was ready to move past the Vietnam issue and that by bringing up the president's military service, it's keeping things stuck right where it was for the last couple of weeks?

HENRY: You're absolutely right. It's a very fine line that John Kerry is going to try to walk down. He saw his own poll numbers come down because of the swift boat ads, as I mentioned. Some Democrats may believe that by attacking President Bush's National Guard service that could bring the president's numbers down. But as you suggest, there also could be a boomerang effect. And if John Kerry is out there trying to focus on domestic issues, saying he has a positive message, if other Democrats are out there attacking in a negative personal way, President Bush, that could backfire on John Kerry -- Daryn.

KAGAN: Ed Henry in Des Moines. Thank you.

Let's look at a new poll showing President Bush pulling ahead of John Kerry in at least two key battle ground states. According to the/"USA Today"/Gallup poll survey conducted after the Republican National Convention, Mr. Bush holds a big lead in Missouri with 55 percent of likely voters to Senator Kerry's 41 percent. Mr. Bush also runs ahead in Ohio 52 percent to 44 percent. Pennsylvania, too close to call today. And Kerry leading in Washington 52 percent of likely voters support him compared to 44 percent for President Bush. The margin of error, by the way, is four percentage points.

For all the latest things on things political, visit our continually updated web site. That address is cnn.com/politics.

Iraq's new chapter, at least in the military sense, is being written in a new strategy. Pentagon sources tell CNN that a joint U.S.-Iraqi plan is in the works to launch a series of offensives, aimed at eliminating so-called No-Go Zones across Iraq. Those are areas not controlled by the U.S. military or the Iraqi government.

In Baghdad, here is CNN's Diana Muriel with more on that.

Diana, hello. DIANA MURIEL, CNN CORRESPONDENT: Hello, Daryn. Yes, one of the biggest No-Go Zones has been Fallujah, that's the city to the west of Baghdad, which -- from which the U.S. forces withdrew in April after a three-week siege of the city. But they've maintained a base outside the city, and from there they have been launching air attacks in recent days and over recent nights. Last night, no exception, there were more air strikes in the city of Fallujah.

Our cameraman was in the city at the site of one of those precision air strike targets. It was a house in a residential area. The house was destroyed and around three houses on either side of it were badly damaged in the blast. And there were a number of civilian casualties. The minis -- the multi-national forces here in Baghdad have told us that they mounted that air strike on this particular house because they were -- had military intelligence, they had operational intelligence, which told them that there were insurgents working from that building. And they had mounted that strike in conjunction with the Iraqi Defense Ministry and with the office of the interim Prime Minister Iyad Allawi here.

The Ministry of Health has told us that there were four children killed in that blast and seven were wounded. There were three women killed and three men killed. Four women wounded and four men wounded as well. The military, the U.S. military here in Baghdad saying that they regret the loss of life there, but they had good intelligence that insurgents were operating in that area.

This has been the complaint of people in Fallujah itself. They're angry at the American for these strikes, of course. But also very angry at the Mujahideen, these fighters who have taken over areas, or operating in areas, residential areas of that city. They want to see them move away from them into industrial areas of the city, away from the places where people live. Because the damage that's being done, the killing that's being done, as a consequence of these targeted air strikes by the U.S., is killing a lot of innocents as well in Fallujah.

So these strikes continuing from the U.S. forces in that area, in a bid to break this No-Go Zone there -- Daryn.

KAGAN: Diana Muriel in Baghdad, thank you.

Other world news now. A powerful car bomb exploded in Indonesia today, killing at least eight people and wounding more than 160 others. The blast in central Jakarta's business district tore a hole through the Australian Embassy security gate. The explosion also left a crater about 10 feet deep. Australia's foreign minister says the attacks looks like the word -- like the work of Jama Islamia, an Indonesian-based militant group linked to al Qaeda.

The Pakistani government says that its air force bombed a suspected strong hold for al Qaeda operatives. The early morning attack happened near the Pakistani-Afghan border. Local officials say at least 40 people were killed. Pakistani forces have been searching for Taliban and al Qaeda members in the remote mountainous region for months now. U.S. officials believe Usama bin Laden and his top deputy Amman al Zarqawi are hiding in that area.

Also, dist -- dust -- excuse me. This just in to CNN. Word from Secretary of State Colin Powell, he is testifying today before the Senate Foreign Relations Committee on what is happening in Sudan. The secretary of state using very specific language in talking about Sudan, saying he does believe genocide has been committed in the Sudanese region of Darfur. He is citing consistent and widespread pattern of atrocities, including: killing, rapes and burning of villages. He says that the government of Sudan and the Arab Janjaweed militias are responsible for that genocide. More on that with our Andrea Koppel ahead.

Also, we're going to focus on Hurricane Ivan. It is now a Category 5 storm. After leaving a massive destruction in Grenada, it is now turning toward Jamaica. A live report straight ahead for you.

And Russian officials confirm more than 1,000 people were captive during the school hostage crisis, where more than 300 died.

Also, I'll be talking with Rory Kennedy about her new documentary about Indian Point Nuclear Plant. She says it is a vulnerable target for terrorists. Plant officials say she is wrong. Stay with us for that discussion.

(COMMERCIAL BREAK)

KAGAN: turning to weather now. Hurricane Ivan is a very dangerous Category 5 storm. It is headed for a direct hit on Jamaica.

Our Karl Penhaul is there, joins me by phone now from Kingston.

Karl, good morning.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Daryn. Yes, as you say, we're in Kingston right now. But looking at these reports that have come out from the neighboring Caribbean island of Grenada, as seen there that the hurricane when it struck was still a Category 4 storm, as far as we understand. Tremendous devastation according to preliminary reports. Communications are still very difficult there. We understand a lot of the communication has been carried out by amateur radio operators. Although we do understand that the British Royal Navy has now landed on the island and are now trying to clear the runway for relief flights in.

The preliminary reports are speaking of 12 dead on the island of Grenada, along with 90 percent of the buildings damaged. Including in those buildings a 17-century stone prison, which was reduced to rubble. And many of the prisoners, in fact, all the prisoners in that jail have now escaped and are on the run somewhere on the island. Now of course, the concern now if this hurricane moves towards Jamaica, what happens now?

The hurricane has strengthened, a Category 5 storm. We're talking of winds of up to 160 miles an hour. I've just come off the telephone to the meteorological office here in Kingston, and they're telling me that the storm is currently about 400 miles off the southeast corner of Jamaica. We expect to feel the winds from the storm later on tonight. But that the hurricane force storm should really kick in around dawn tomorrow, according to the meteorological center. The hurricane is due to pass right across the island. And what the head of the meteorological office told me is that this storm could be "catastrophic" in his words.

He expects, he said, more significant damage than the last major hurricane that struck Jamaica, which was Hurricane Gilbert in 1988. That caused more than $600 million worth of damage and cost more than 45 lives. Certainly Jamaica on this high alert for this. In fact, Prime Minister P.J. Patterson made a national TV broadcast last night, urging the Jamaicans to prepare for what he calls the "imminent danger." Fears to be more so prepared for he calls the "worst-case scenario" -- Daryn.

KAGAN: All right. Karl Penhaul, we will be checking in with you in Kingston, Jamaica. Please to you and our crew there, please be safe. Thank you.

The remnants of Hurricane Frances have hit several states with prodigious amounts of rain. More than 200 roads in western North Carolina were impassable due to high water and mudslides. Thousands of people have no electricity and tens of thousands no drinking water. More than a foot of rain fell in some mountain communities.

So, there is a lot of weather to keep track of.

And right now, we'll take a break. We're back after this.

(COMMERCIAL BREAK)

KAGAN: Lot of work -- Americans keep working past retirement age just to pay the bills. But other older Americans just kind of enjoy working.

Our personal finance editor Gerri Willis with tips on keeping busy and keeping the paycheck coming in.

Gerri, good morning.

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Hey, Daryn. Good to see you. A lot of people working because we're living longer. We're healthier and people want to keep themselves busy. In fact, 40 percent of people aged 55 and over, they view retirement as a whole new beginning.

Now, if you do too, and you want to find the perfect second career, I've got some advice for you. Go to the Labor Department's career info net. It's a web site, acinet.org. And they'll give you great advice on how to find that second career. They've even got a skilled profiler that will match your skills with the right job -- Daryn.

KAGAN: All right. Let's go to the web for other hints as well to find that job. WILLIS: Yes. I'm always high on using the web because it's so helpful. If you're looking for leads, it's a great place to go as well. We've got some great web sites here. Seniorhelpwanted.com, seniorjobbank.com, seniors.gov, they're great places to go. And you know, when you've been out of the work force for a while, your leads may be a little rusty and you need a little help, this is a great start.

KAGAN: You want to go someplace where you're going to be loved, right?

WILLIS: That's right. You want an employer who likes the fact that you have a lot of experience, a lot of maturity. And frankly, Daryn, more and more employers do now. Why is that? Well, the work force is changing. Some employers can't find the people they need. So they're looking to seniors.

The AARP recently, they've put out a list of senior-friendly employers. I want to name a few of them for you: ADECCO, Vanguard, the big mutual fund company, and Deer. Just three of 35; you can go to aarp.org to find out other companies that are senior friendly.

KAGAN: But hey, don't rule out working for yourself.

WILLIS: Yes. I think this is a great idea. So, let's say you worked for years and years, and years. You loved what you're doing. Now you can be a consultant. That's always a great way to go. And you can get help if you've never had your own business before by going to an organization called Score. They're a nonprofit organization volunteers, give you a little consulting help on your consulting business to tell you the best way to set it up -- Daryn.

KAGAN: And finally, a lot of people, young people when looking for jobs, they are thinking about benefits. But maybe you don't need to worry about that when you're older?

WILLIS: Well, it's not worrying about the benefits. It's the fear that you might lose your Social Security benefits if you work. Bottom line here is, if you're 65 and four months or older, 65 years and 4 months or older, you will not lose benefits. You can work to your heart's delight; you will not loose Social Security benefits.

However, if you're between 62 and 65, you could lose some benefits. Particularly if your earnings are over $11,640; so not a lot to be lost here if you want to get back in the work force. And you know, maybe some perks maybe some fulfillment you would get along the way -- Daryn.

KAGAN: Gerri Willis, thank you so much.

WILLIS: Thank you.

KAGAN: Russian officials are releasing more details of the hostage standoff that ended with the deaths of many children. This as Rudy Giuliani prepares to meet with Russian leaders. And the Senate and House Armed Services Committee hold hearings on reports of abuse at Abu Ghraib prison. A live report is straight ahead.

(COMMERCIAL BREAK)

KAGAN: Let's take a look at some of the stories now in the news.

Secretary of State Colin Powell is on Capitol Hill this hour for a hearing on the deepening crisis in Sudan. A live picture there on Capitol Hill. Less than an hour ago before the Senate Foreign Relations Committee, he said that atrocities committed in the Darfur region do constitute genocide. Tens of thousands of have died, 1.2 million people displaced in Arab attacks on non-Arab African tribes.

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Aired September 9, 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 headquarters here in Atlanta. I'm Daryn Kagan. As always, we start with a look at what is happening now in the news.
Hurricane Ivan is cutting through the Caribbean with maximum sustained winds of nearly 160 miles an hour. The storm is being blamed for at least four deaths, and possibly as many as 20 on Grenada. Ninety percent of the island's buildings were damaged. Officials say the hurricane destroyed Grenada's prison and all the prisoners escaped. Nervous emergency officials in the Florida Keys are ordering an evacuation of all residents and tourists.

U.S. forces launched a two-pronged attack on insurgents in Iraq early this morning. Iraqi health officials say 25 people were killed, and at least 70 wounded in Tal Afar. Six suspected insurgents were detained. And U.S. military officials say that an air strike in Fallujah targeted a building being used by followers of accused terrorist Abu Musab Zarqawi. Iraqi health officials say at least 10 people were killed including more children.

Back here in the U.S., more pressure on the Pentagon in the prison abuse scandal. Live pictures here from Capitol Hill The Senate and House Armed Services Committees are holding hearings today on the two latest reports ordered by the Defense Department. At the same time, a group of retired military officers is calling for an independent panel to investigate the scandal.

The maker and seller of the gun used in the D.C. area sniper attacks have settled a victim's lawsuit. Bush Master Firearms agreed to pay $550,000 and a Tacoma, Washington gun dealer agreed to pay $2 million. A judge will determine how to divide the settlement among two people injured in the shootings and the families of the six people who were killed.

Live this hour in Des Moines, Iowa, John Kerry stepping off the stage and into the center of the debate over health care. Right now, he's hosting a roundtable discussion. Then he moves on to a town hall meeting.

Three decades after U.S. troops withdrew from Vietnam, the conflict is raging again in the battleground of presidential politics. Today, there are newly uncovered documents and renewed questions about George W. Bush's military service.

Our Elaine Quijano is at the White House with more on that. Elaine, good morning.

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Daryn. The White House continues to defend the president's conduct during the Vietnam era, amid more questions about his service in the Texas Air National Guard. Now, as you mentioned, some new memos obtained by CNN uncovering some new information indicating Mr. Bush's former commander felt pressure by higher-ups to give then Lieutenant Bush favorable evaluations. In one memo, the commander also speculates that when Mr. Bush was trying to transfer to in duty Alabama, he was, quote, "talking to someone upstairs."

Now, those memos first became public in a "60 Minutes" story last night. And in that same story in an interview, a Democrat from Texas says he helped Mr. Bush get into the Guard in the 1970s to curry political favor.

(BEGIN VIDEO CLIP)

BEN BARNES (D-TX), FMR. LIEUTENANT GOVERNOR: I recommended a lot of people for the National Guard during the Vietnam era, as speaker of the House and as lieutenant governor.

DAN RATHER, HOST, "60 MINUTES": And you recommended George W. Bush?

BARNES: Yes, I did.

I would describe it as preferential treatment. There were hundreds of names on the list of people wanting to get in the Air National Guard or the Army National Guard.

(END VIDEO CLIP)

QUIJANO: Now, a group called Texans for Truth is joining in the fray, launching ads suggest suggesting that Mr. Bush did not show up for duty when he was transferred to Alabama. The White House though, is denying that, citing dental and pay records as proof of his service. Officials here chalking up the accusations as partisan attacks that have surfaced before.

(BEGIN VIDEO CLIP)

DAN BARTLETT, WHITE HOUSE SPOKESMAN: Their strategy is now that President Bush is ahead in the polls and we're going to try to bring him down. So let's recycle old charges.

(END VIDEO CLIP)

QUIJANO: Now as for the memos, the administration insists they do not prove anything. But officials here, Daryn, are very mindful with less than two months to go until the election. And some polls showing a neck and neck race. There could be more attacks on this issue to come -- Daryn.

KAGAN: Elaine Quijano at the White House. Elaine, thank you. Meanwhile, Senator Kerry has campaigned exhaustively on his Vietnam combat decorations, and critics have relentlessly attacked the credibility of his claims. So, how will the Democrat approach this latest wrinkle in the issue of military service? We might find out very soon, as the senator is kicking off a day of campaigning in the Midwest.

Our congressional correspondent Ed Henry is in Des Moines, Iowa, one of the Democrat's stops.

Ed, good morning.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Daryn. As you were just talking about the negative ads, the nasty charges about Vietnam, they are heating up once again. You will remember that Bill Clinton and other Democrats have talked to Senator Kerry about trying not to focus on 35 years ago, instead look at the future. And that's why this morning, John Kerry just arrived behind me about a moment ago, he's going to be having a roundtable discussion, as you mentioned. But also a town hall meeting focused on health care. He's trying to keep that focus on domestic issues, like health care, like the economy and education.

He's trying to stay kind of above the fray, not get in the middle of these negative attacks. And in fact, yesterday when he was asked about the president's National Guard service, John Kerry ducked a question about it. And when he delivered a speech in Cincinnati about Iraq, and was pretty harsh in his rhetoric about President Bush, it was focused on policy, not personal issues. It was focused on policy. That is what Kerry is trying to do. That appears to be his strategy at this point.

He is also -- the Kerry campaign will be unveiling new ads today in Pennsylvania, where President Bush will be campaigning. Those ads are going to be focused on domestic issues like health care. Again, he's trying to keep that focus, because Bill Clinton and other Democrats have said that he has to focus on bread and butter issues, not get mired in these attacks back and forth.

The other issue here is that while these negative ads are going on, Democratic officials, like Terry McAuliffe, the Democratic National Committee chairman, he came out yesterday and once again suggested that maybe President Bush did not serve honorably and perhaps he did not complete his service in the National Guard. There were obviously a lot of Republicans upset about those charges. But what you see are outside people, outside groups and outside officials launching these attacks against President Bush. Kerry trying to stay out of it.

But Republicans say that this Texans for Truth group is affiliated with moveon.org, the Democratic-leaning group. And they're saying John Kerry to not stay away from this completely. You'll remember, this sounds a bit familiar. Because it was only a couple of weeks ago that John Kerry, when the swift boat ads were out there at full strength, John Kerry was alleging that these groups were doing the dirty work for President Bush. You're now starting to hear Republicans say that Texans for Truth and others are doing the dirty work for John Kerry -- Daryn.

KAGAN: So a bunch of finger pointing go both ways. So is it necessary for the Kerry campaign then to distance itself and do what it was asking the Bush campaign to do?

HENRY: They're going to have to try to distance themselves as much as possible. And you can bet that the Bush campaign, at some point, is very likely to start asking when will John Kerry denounce these Texans for Truth ads. The Democrats made a lot of hay about that very subject. As you mentioned, trying to get President Bush to denounce the swift boat ads. You can bet Republicans are going to be coming back. They think Democrats are trying to turn the tables because John Kerry's poll numbers came down after those swift boat ads -- Daryn.

KAGAN: And Ed, isn't this kind of a mixed blessing for John Kerry? Because it sounds like the campaign was ready to move past the Vietnam issue and that by bringing up the president's military service, it's keeping things stuck right where it was for the last couple of weeks?

HENRY: You're absolutely right. It's a very fine line that John Kerry is going to try to walk down. He saw his own poll numbers come down because of the swift boat ads, as I mentioned. Some Democrats may believe that by attacking President Bush's National Guard service that could bring the president's numbers down. But as you suggest, there also could be a boomerang effect. And if John Kerry is out there trying to focus on domestic issues, saying he has a positive message, if other Democrats are out there attacking in a negative personal way, President Bush, that could backfire on John Kerry -- Daryn.

KAGAN: Ed Henry in Des Moines. Thank you.

Let's look at a new poll showing President Bush pulling ahead of John Kerry in at least two key battle ground states. According to the/"USA Today"/Gallup poll survey conducted after the Republican National Convention, Mr. Bush holds a big lead in Missouri with 55 percent of likely voters to Senator Kerry's 41 percent. Mr. Bush also runs ahead in Ohio 52 percent to 44 percent. Pennsylvania, too close to call today. And Kerry leading in Washington 52 percent of likely voters support him compared to 44 percent for President Bush. The margin of error, by the way, is four percentage points.

For all the latest things on things political, visit our continually updated web site. That address is cnn.com/politics.

Iraq's new chapter, at least in the military sense, is being written in a new strategy. Pentagon sources tell CNN that a joint U.S.-Iraqi plan is in the works to launch a series of offensives, aimed at eliminating so-called No-Go Zones across Iraq. Those are areas not controlled by the U.S. military or the Iraqi government.

In Baghdad, here is CNN's Diana Muriel with more on that.

Diana, hello. DIANA MURIEL, CNN CORRESPONDENT: Hello, Daryn. Yes, one of the biggest No-Go Zones has been Fallujah, that's the city to the west of Baghdad, which -- from which the U.S. forces withdrew in April after a three-week siege of the city. But they've maintained a base outside the city, and from there they have been launching air attacks in recent days and over recent nights. Last night, no exception, there were more air strikes in the city of Fallujah.

Our cameraman was in the city at the site of one of those precision air strike targets. It was a house in a residential area. The house was destroyed and around three houses on either side of it were badly damaged in the blast. And there were a number of civilian casualties. The minis -- the multi-national forces here in Baghdad have told us that they mounted that air strike on this particular house because they were -- had military intelligence, they had operational intelligence, which told them that there were insurgents working from that building. And they had mounted that strike in conjunction with the Iraqi Defense Ministry and with the office of the interim Prime Minister Iyad Allawi here.

The Ministry of Health has told us that there were four children killed in that blast and seven were wounded. There were three women killed and three men killed. Four women wounded and four men wounded as well. The military, the U.S. military here in Baghdad saying that they regret the loss of life there, but they had good intelligence that insurgents were operating in that area.

This has been the complaint of people in Fallujah itself. They're angry at the American for these strikes, of course. But also very angry at the Mujahideen, these fighters who have taken over areas, or operating in areas, residential areas of that city. They want to see them move away from them into industrial areas of the city, away from the places where people live. Because the damage that's being done, the killing that's being done, as a consequence of these targeted air strikes by the U.S., is killing a lot of innocents as well in Fallujah.

So these strikes continuing from the U.S. forces in that area, in a bid to break this No-Go Zone there -- Daryn.

KAGAN: Diana Muriel in Baghdad, thank you.

Other world news now. A powerful car bomb exploded in Indonesia today, killing at least eight people and wounding more than 160 others. The blast in central Jakarta's business district tore a hole through the Australian Embassy security gate. The explosion also left a crater about 10 feet deep. Australia's foreign minister says the attacks looks like the word -- like the work of Jama Islamia, an Indonesian-based militant group linked to al Qaeda.

The Pakistani government says that its air force bombed a suspected strong hold for al Qaeda operatives. The early morning attack happened near the Pakistani-Afghan border. Local officials say at least 40 people were killed. Pakistani forces have been searching for Taliban and al Qaeda members in the remote mountainous region for months now. U.S. officials believe Usama bin Laden and his top deputy Amman al Zarqawi are hiding in that area.

Also, dist -- dust -- excuse me. This just in to CNN. Word from Secretary of State Colin Powell, he is testifying today before the Senate Foreign Relations Committee on what is happening in Sudan. The secretary of state using very specific language in talking about Sudan, saying he does believe genocide has been committed in the Sudanese region of Darfur. He is citing consistent and widespread pattern of atrocities, including: killing, rapes and burning of villages. He says that the government of Sudan and the Arab Janjaweed militias are responsible for that genocide. More on that with our Andrea Koppel ahead.

Also, we're going to focus on Hurricane Ivan. It is now a Category 5 storm. After leaving a massive destruction in Grenada, it is now turning toward Jamaica. A live report straight ahead for you.

And Russian officials confirm more than 1,000 people were captive during the school hostage crisis, where more than 300 died.

Also, I'll be talking with Rory Kennedy about her new documentary about Indian Point Nuclear Plant. She says it is a vulnerable target for terrorists. Plant officials say she is wrong. Stay with us for that discussion.

(COMMERCIAL BREAK)

KAGAN: turning to weather now. Hurricane Ivan is a very dangerous Category 5 storm. It is headed for a direct hit on Jamaica.

Our Karl Penhaul is there, joins me by phone now from Kingston.

Karl, good morning.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Daryn. Yes, as you say, we're in Kingston right now. But looking at these reports that have come out from the neighboring Caribbean island of Grenada, as seen there that the hurricane when it struck was still a Category 4 storm, as far as we understand. Tremendous devastation according to preliminary reports. Communications are still very difficult there. We understand a lot of the communication has been carried out by amateur radio operators. Although we do understand that the British Royal Navy has now landed on the island and are now trying to clear the runway for relief flights in.

The preliminary reports are speaking of 12 dead on the island of Grenada, along with 90 percent of the buildings damaged. Including in those buildings a 17-century stone prison, which was reduced to rubble. And many of the prisoners, in fact, all the prisoners in that jail have now escaped and are on the run somewhere on the island. Now of course, the concern now if this hurricane moves towards Jamaica, what happens now?

The hurricane has strengthened, a Category 5 storm. We're talking of winds of up to 160 miles an hour. I've just come off the telephone to the meteorological office here in Kingston, and they're telling me that the storm is currently about 400 miles off the southeast corner of Jamaica. We expect to feel the winds from the storm later on tonight. But that the hurricane force storm should really kick in around dawn tomorrow, according to the meteorological center. The hurricane is due to pass right across the island. And what the head of the meteorological office told me is that this storm could be "catastrophic" in his words.

He expects, he said, more significant damage than the last major hurricane that struck Jamaica, which was Hurricane Gilbert in 1988. That caused more than $600 million worth of damage and cost more than 45 lives. Certainly Jamaica on this high alert for this. In fact, Prime Minister P.J. Patterson made a national TV broadcast last night, urging the Jamaicans to prepare for what he calls the "imminent danger." Fears to be more so prepared for he calls the "worst-case scenario" -- Daryn.

KAGAN: All right. Karl Penhaul, we will be checking in with you in Kingston, Jamaica. Please to you and our crew there, please be safe. Thank you.

The remnants of Hurricane Frances have hit several states with prodigious amounts of rain. More than 200 roads in western North Carolina were impassable due to high water and mudslides. Thousands of people have no electricity and tens of thousands no drinking water. More than a foot of rain fell in some mountain communities.

So, there is a lot of weather to keep track of.

And right now, we'll take a break. We're back after this.

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KAGAN: Lot of work -- Americans keep working past retirement age just to pay the bills. But other older Americans just kind of enjoy working.

Our personal finance editor Gerri Willis with tips on keeping busy and keeping the paycheck coming in.

Gerri, good morning.

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Hey, Daryn. Good to see you. A lot of people working because we're living longer. We're healthier and people want to keep themselves busy. In fact, 40 percent of people aged 55 and over, they view retirement as a whole new beginning.

Now, if you do too, and you want to find the perfect second career, I've got some advice for you. Go to the Labor Department's career info net. It's a web site, acinet.org. And they'll give you great advice on how to find that second career. They've even got a skilled profiler that will match your skills with the right job -- Daryn.

KAGAN: All right. Let's go to the web for other hints as well to find that job. WILLIS: Yes. I'm always high on using the web because it's so helpful. If you're looking for leads, it's a great place to go as well. We've got some great web sites here. Seniorhelpwanted.com, seniorjobbank.com, seniors.gov, they're great places to go. And you know, when you've been out of the work force for a while, your leads may be a little rusty and you need a little help, this is a great start.

KAGAN: You want to go someplace where you're going to be loved, right?

WILLIS: That's right. You want an employer who likes the fact that you have a lot of experience, a lot of maturity. And frankly, Daryn, more and more employers do now. Why is that? Well, the work force is changing. Some employers can't find the people they need. So they're looking to seniors.

The AARP recently, they've put out a list of senior-friendly employers. I want to name a few of them for you: ADECCO, Vanguard, the big mutual fund company, and Deer. Just three of 35; you can go to aarp.org to find out other companies that are senior friendly.

KAGAN: But hey, don't rule out working for yourself.

WILLIS: Yes. I think this is a great idea. So, let's say you worked for years and years, and years. You loved what you're doing. Now you can be a consultant. That's always a great way to go. And you can get help if you've never had your own business before by going to an organization called Score. They're a nonprofit organization volunteers, give you a little consulting help on your consulting business to tell you the best way to set it up -- Daryn.

KAGAN: And finally, a lot of people, young people when looking for jobs, they are thinking about benefits. But maybe you don't need to worry about that when you're older?

WILLIS: Well, it's not worrying about the benefits. It's the fear that you might lose your Social Security benefits if you work. Bottom line here is, if you're 65 and four months or older, 65 years and 4 months or older, you will not lose benefits. You can work to your heart's delight; you will not loose Social Security benefits.

However, if you're between 62 and 65, you could lose some benefits. Particularly if your earnings are over $11,640; so not a lot to be lost here if you want to get back in the work force. And you know, maybe some perks maybe some fulfillment you would get along the way -- Daryn.

KAGAN: Gerri Willis, thank you so much.

WILLIS: Thank you.

KAGAN: Russian officials are releasing more details of the hostage standoff that ended with the deaths of many children. This as Rudy Giuliani prepares to meet with Russian leaders. And the Senate and House Armed Services Committee hold hearings on reports of abuse at Abu Ghraib prison. A live report is straight ahead.

(COMMERCIAL BREAK)

KAGAN: Let's take a look at some of the stories now in the news.

Secretary of State Colin Powell is on Capitol Hill this hour for a hearing on the deepening crisis in Sudan. A live picture there on Capitol Hill. Less than an hour ago before the Senate Foreign Relations Committee, he said that atrocities committed in the Darfur region do constitute genocide. Tens of thousands of have died, 1.2 million people displaced in Arab attacks on non-Arab African tribes.

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