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Rumsfeld Returns to Iraq; White House Rejects Bilateral Talks with North Korea; Media Correspondents and Politicians Criticize Conservative Journalist

Aired February 11, 2005 - 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.


RICK SANCHEZ, CNN CO-ANCHOR: We do have some interesting stories that we're going to be sharing with you on this day. A baby that is tossed out of a car, we'll bring it to you. It's from south Florida.
The other side of the country, up in Oregon, we're going to tell you about a suicide pact and how police are really just trying to figure this one out.

BETTY NGUYEN, CNN ANCHOR: Absolutely. Here's what we have happening right now in the news.

Defense Secretary Donald Rumsfeld makes a surprise visit to Iraq today. He is viewing the progress of Iraqi forces and meeting with U.S. troops. Rumsfeld also met with Iraqi interim Prime Minister Iyad Allawi. Rumsfeld told U.S. troops that when Iraqis have the confidence to defeat the insurgents, American forces can then go home.

Well, more than 50 people are reported dead after a dam gave away in southwestern Pakistan. Dozens are missing. Floodwaters have washed out a coastal highway and bridges, cutting off many areas. The dam break came after the region's heaviest rains and snowfalls in years.

Police, they have arrested the alleged ringleader of what they say is a Valentine's Day suicide pact group. Now authorities in the U.S. and Canada are in desperate search for the group's 32 members. The group made its plans in an internet chat room. And police say one member was a mother who planned to kill her two children and then herself. We, of course, will have a live report a little bit later this hour.

Right now, police in south Florida want to talk to the couple that tossed a newborn baby boy out of a moving car. Here is a picture of that baby. The baby had a plastic bag over its head. Doctors say the infant is in serious condition, but improving. A woman who brought the baby to police say she saw the couple arguing before the baby was thrown on to the roadside. Just amazing.

So as you see, we've got a lot to talk about today. Good morning, everybody. I'm Betty Nguyen sitting in for Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez.

Iraq front and center this morning for two reasons, really. One, Secretary of Defense Rumsfeld makes a surprise appearance there. Two, insurgents make a surprise attack. Interestingly enough, the secretary was stressing how Iraqis need to eventually take over their own security when Iraqi nationals came under attack.

Several cars pulled up in front of two Baghdad bakeries and the masked gunmen opened fire. Nine workers were killed.

For the latest on these events, we take you to Baghdad and Clinton senior international correspondent Nic Robertson who is following things for us.

Rick, over to you.

NIC ROBERTSON, CNN SENIOR INT'L. CORRESPONDENT: Rick, hello. Certainly when Donald Rumsfeld was arriving in Baghdad, just as that was happening, a car bomb went off outside a Shiite mosque about 45 miles northeast of Baghdad. Twelve people were killed when the car bomb detonated. Four of them were members of Iraqi National Guard force who were patrolling the mosque at the time. Eight civilians also killed there, 23 people wounded.

Another attack earlier in the day in Baghdad on Shiites; this at a Shiia bakery. Two bakeries right next door to each other. And according to the police, gunmen pulled up. About a dozen gunmen jumped out of the vehicles. Fired shots at the workers in both bakeries. Killing nine of them. The police say that they believe this is an effort to stimulate sectarian tensions between the Sunni Muslim insurgents and the Shiia community. Possibly ahead of a big Shiia festival coming up in about a week's time.

As Donald Rumsfeld met in Baghdad, he met with Iyad Allawi, the interim prime minister. The prime minister thanking the secretary of defense for the help from U.S. forces to provide security for the elections. Donald Rumsfeld telling Iyad Allawi that he's very proud to see that the elections had gone ahead well.

Rumsfeld met earlier in the day in Mosul, where he flew into while it was still dark for security regions. He met there at a medical facility with a soldier and gave that soldier a Purple Heart. The soldier had been shot in the hand just yesterday by a sniper. The second Purple Heart this soldier' has received in just four months.

The secretary of defense went on to address troops there, tell them that he was very proud of the work that they've done in providing security for the elections. Proud of their families for supporting them while they're on duty inside Iraq.

But perhaps the central focus of the defense secretary's visit here, to review the training of Iraqi security forces. And he saw their Special Forces undergoing training, practice, firing automatic weapons, handguns on a range. He saw them even descending, repelling down ropes from helicopters, doing simulated assaults on buildings.

All part of the focus now for U.S. troops here to begin emphasizing and pushing forward with training of Iraqi security forces in Baghdad. Iraqi security forces already beginning to take control of some of the more contentious neighborhoods -- Rick. SANCHEZ: Interesting confluence of events taking place today in Iraq. We thank you, Nic Robertson filling in for us. We certainly appreciate it.

Betty, over to you.

NGUYEN: And this just in to CNN right now, the White House has rejected direct talks with North Korea. This is some response to North Korea reportedly demanding bilateral talks with the United States over the communist statements that it has nuclear weapons. Now, that is according to a South Korean newspaper in its interview with Pyongyang's envoy to the United Nations.

CNN's Sohn Jie-Ae has some reaction from neighbors on the Korean Peninsula.

(BEGIN VIDEOTAPE)

SOHN JIE-AE, CNN CORRESPONDENT (voice-over): A handful of anti- North Korean protesters rallied near the U.S. Embassy in Seoul. "We demand a strong response to North Korea's declaration of having nuclear weapons and pulling out of the six-party talks," they chant. "The time for negotiations is over. Regime change is the only way to go," they claim.

But others in Seoul's streets are more reserved.

Are you surprised, we asked this office worker?

"Not at all," she says. "That I expected. But I'm afraid that this will worsen things between North Korea and the U.S., and that could even lead to war."

Gloomy sentiments from shoppers, who returned to this major fashion district after a three-day Lunar New Year holiday.

"I'm not surprised so much as disappointed," says this man. "I had hoped that a peaceful resolution of the nuclear issue would help our economy."

This office worker was just angry.

"I think what North Korea did was stupid," he said. "They just made the wrong move. And I think if that is the way they want to play, South Korea should also declare we are making nuclear weapons."

South Korea convened an emergency meeting of its National Security Council and expressed deep concern. Reiterated its stance that it would not condone a nuclear North Korea, and urged the North to return to the six-party talks.

Foreign Minister Ban Ki Moon is in Washington and expected to discuss the issue with U.S. Secretary of State Condoleezza Rice. The round of diplomatic flurry, some analysts say, may be exactly what North Korea is after. MICHAEL BREEN, NORTH KOREA ANALYST: I mean what they've successfully done is they've shifted the subject of discussion away from nuclear weapons to please persuade us to come to the talks. Give us some concessions. You know, make some promises. Give us some cash, do something. And this is what they do all the time.

JIE-AE: Such well-known North Korea negotiating tactics may be prompting many in and out of South Korea to react carefully to North's recent announcement.

(on camera): While the declaration that it possessed nuclear weapons caused little surprise on Seoul's streets or in government offices, it did cause great concern. Concern that once again tensions would rise on the Korean Peninsula.

Sohn Jie-Ae, CNN, Seoul.

(END VIDEOTAPE)

NGUYEN: And again to recap, North Korea has rejected six-party talks. Instead it wanted to speak directly with the United States. But the United States says that it will reject those direct talks with North Korea.

And of course, we do want to remind you that senior White House correspondent John King will have a live report on all of this coming up shortly. Also this reminder, you will want to stay tuned to CNN day and night for the most reliable news about your security.

SANCHEZ: Now on to Washington, where we continue to follow a story. In just about half an hour President Bush will take part of the swearing-in ceremony for secretary of Health and Human Services. His new one, that is. Former Utah Governor Mike Leavitt has already been on the job. We're going to bring you the ceremony live as it happens, for the fill in of Wisconsin former Governor Tommy Thompson.

NGUYEN: In Washington and much of politics, perception is reality. And that may be central to the odd case of Jeff Gannon. A fictitious name for a person with real White House press credentials. But is he a real journalist.

Well, Tom Foreman takes a look at questions of credibility overshadowing the reporter and maybe the administration.

(BEGIN VIDEOTAPE)

Al Qaeda's second in demand...

TOM FOREMAN, CNN CORRESPONDENT (voice-over): On the radio, on the internet, on dozens of TV channels, thousands of people call themselves journalists. And that is raising a sticky question when it comes to access to the White House, which ones should be treated like real reporters.

SCOTT MCCLELLAN, WHITE HOUSE SPOKESMAN: Good afternoon, everybody. FOREMAN: Press secretary Scott McClellan said, "When you have changing media, it is not an easy issue to decide or try to pick and choose who is a journalist. It gets into the issue of advocacy journalism. Where do you draw the line? "

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: Good morning.

FOREMAN: A question to the president by a conservative internet reporter sparked the debate. Jeff Gannon of talonnews.com took aim at Democratic senators last month.

JEFF GANNON, INTERNET REPORTER, TALONNEWS.COM: How are you going to work with people who seem to have divorced themselves from reality?

FOREMAN: Liberal websites call Gannon a shill for conservative interests. Congressional Democrats asked why he was allowed into the press briefing. Gannon is defending himself.

GANNON: Well, Talon News is a legitimate, conservative online news service. And my questions are think things that my readers, 700,000 daily subscribed readers want the answer to.

FOREMAN: Still, under a torrent of what he calls unfair internet assaults on his personal life and threats against his family, Gannon has resigned from Talon News. And even White House reporters who like him say that's for the best.

BOB DEANS, FMR. PRESIDENT, WHITE HOUSE CORRESPONDENTS ASSN.: The public has a hard time right now discerning who to trust with the news.

FOREMAN: Bob Deans is the former president of the White House Correspondents Association.

DEANS: They ought to be able to know that we are who we say we are. We don't have a political ax to grind. And we're going to deliver the news straight up. And that if we don't, our editors are going to yank us.

FOREMAN (on camera): Getting a permanent press pass at the White House is difficult. Generally, only big news organizations can do it. But daily press passes are handed out to almost anyone in the media who passes a basic security test. That is how Jeff Gannon got inside for two years.

(voice-over): And although he is now gone, White House journalists say others with clearly political points of view remain. While the White House says that it's not the administration job to decide who is or is not a legitimate journalist.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

SANCHEZ: Here's another big story that we're going to follow on this day. People do throw all types of things out of cars. We've seen it. But a newborn baby? That seems well, insane. Still to come, a disturbing story of a baby tossed out of a moving vehicle, umbilical cord and all.

NGUYEN: My goodness.

Well, it was an email solicitating death. And people, they signed up. We have those details straight ahead.

SANCHEZ: And after the shock and awe, details now emerging around the royal engagement. A closer look at the Camilla Parker- Bowles' ring-ring.

(COMMERCIAL BREAK)

SANCHEZ: The North Koreans are saying they have nukes, and further, they're saying they don't want to discuss this with other countries except the United States. They want bilateral talks with the United States and the United States alone.

Interestingly enough, this subject or maybe an answer to it might be a better explanation, came up in the Gaggle today. Our White House correspondent John King was there. He attended the Gaggle. He's going to give us a sense of how the White House is responding to this comment from the North Koreans.

What is it -- John?

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Rick, the answer to the North Koreans from the Bush White House this morning as it has been consistently for the past two years is no, that there be no direct negotiations between Washington and Pyongyang. That if North Korea wants to discuss this or any other issue with the United States it needs to do so in what the White House calls the six-party talks.

Those talks have not been held since last year. North Korea broke them off to see if perhaps President Bush would lose in the presidential election in this country. They involved: Russia, China, South Korea, Japan, the united s and North Korea.

Scott McClellan, the White House press secretary saying there will be no direct negotiations between Washington and North Korea. But that if the North Koreans want to talk to the U.S. envoy, as Scott McClellan put it there's, quote, "Plenty of opportunity in the context of the six-party talks for North Korea to speak directly to the United States." This is one of the debates.

Of course, big issue is North Korea's nuclear weapons program. But there have been no substantive negotiations on that because of the debates over process. North Korea wants one on one talks. The United States says it has to happen in conjunction with all of North Korea's neighbors. And why does the Bush White House say that? Well, its rationale is that there was direct negotiations -- there were direct negotiations that resulted in an agreement back in 1994 between the Clinton administration and North Korea, and North Korea promptly broke that deal.

So the United States says if there is to be any new agreement it doesn't want just two parties signing on. It wants North Korea's neighbors signing on as well so that they could closely watch what happens.

SANCHEZ: Does it seem to you, John, that perhaps the White House and the Bush administration is trying to call their bluff, essentially saying we think what you're trying to do is use us to get something else?

KING: Well, that is certainly the case. And this has happened again and again, and again in the history of these off and on six- party talks. North Korea has says no, it will only negotiate directly with the United States. The Bush administration has held firm. And there have been several rounds of the six-party talks.

How do you get the parties back to the table now? The Bush White House says that so long as Japan, China, South Korea and Russia hold firm with the United States, put pressure on Pyongyang, especially the Chinese, they are the key player here, that perhaps this will turn out as it has in the past.

There's blustery rhetoric, the White House would consider it belligerent rhetoric from North Korea. The Chinese and others intervened and say the only way to talk is to come back the table. The White House is hoping that will happen, but there are no certainties. Pyongyang, of course, Rick, one of the most unpredictable regimes in the world.

SANCHEZ: Our senior White House correspondent John King with the very latest information out of the White House as it happens. We thank you, John.

NGUYEN: And still to come here on LIVE TODAY, the future king stoops, ah, but to conquer that is.

SANCHEZ: There's a reason for it then, huh?

NGUYEN: Uh-huh.

SANCHEZ: Coming up next, the tales of the royal jewel that Prince Charles has slipped on Miss Camilla -- Mrs. Camilla Parker- Bowles' hand.

(COMMERCIAL BREAK)

NGUYEN: All right. Talk about tradition, Camilla Parker-Bowles says Britain's Prince Charles proposed to her on bended knee. The couple greeted about 250 well-wishers at the engagement party last night at Windsor Castle. Look at this. The engagement ring is a royal family heirloom. A square cut centered diamond, set in platinum with three diamond baguettes on either side. I know you wanted to know, Rick. The wedding date is set for April 8. SANCHEZ: Here we go, folks. Time for Gerri-cam, what do you think she's going to be talking about today? Try this on for size, diamonds, Betty.

NGUYEN: Our best friend.

SANCHEZ: Yes, for Valentine's Day, no doubt. Picking the good from the bad, here is CNN's personal finance editor Gerri Willis.

OK. Start us off. What do we need to know?

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Hey, Rick. This is an important topic, you better be taking notes here.

SANCHEZ: I'm taking notes. I'm taking notes.

(LAUGHTER)

WILLIS: In order to get the best advice on buying a gem, of course, we had to check out the real thing at a nice little store on Fifth Avenue right here in New York City. A gem is a big investment. Here is the first thing to get out of your head. Forget about keeping up with the Joneses. Buying jewelry for someone is a personal thing, not a competition.

(BEGIN VIDEO CLIP)

STANISLAS DE QUERCIZE, PRESIDENT/CEO, CARTIER: Don't try to impress too much the people around you. You're in love with somebody forever and for a long period of time, hopefully. But this is very personal. You should try to find something that you love independently from the fashion that will change.

(END VIDEO CLIP)

WILLIS: So take the gal with you, too. When guys buy jewelry alone, they actually spend significantly more because they're afraid of getting something that's just not right.

My new friend at Cartier also told me about the four C's.

(BEGIN VIDEO CLIP)

DE QUERCIZE: Color, clarity, weight-carat, and the cut.

WILLIS (on camera): And so those are the things that I'll be evaluating. Can I do it without any training though? It seems to me that most people who do that are professionals.

DE QUERCIZE: Yes. But Gerri, you fell in love without training. So you don't need the training to pick out the right stone.

(LAUGHTER)

(END VIDEO CLIP) WILLIS: Well, you don't want to go shopping for a gem while blinded by your love. Remember those four C's. But most of all, a good cut is the most important because that's what makes a gem sparkle.

SANCHEZ: How do you tell flawed from not flawed?

WILLIS: Well, you have to go with the fifth certification. That's certification, the fifth C. You only want to buy a certified gem. That means its quality was evaluated by an independent gem lab and is guaranteed. Most major, sophisticated jewelry houses only sell certified gems, but not every jeweler does. If your store says they will send you the certificate afterwards, you've got to be skeptical.

SANCHEZ: Now, here is a question most guys are asking right away to see if we can save a little bit of money. Does it really have to be perfect?

NGUYEN: Yes.

(LAUGHTER)

WILLIS: I heard Betty say yes. But listen, you can get away with some cheats. Listen to this. There are a few ways you can trim your costs, weight and color, mostly. With weight, prices on diamonds jump at the carat and half carat marks. So if you buy a diamond just shy of that one-carat mark, you can save some money. Since the naked eye can't decipher flawless from nearly flawless, you can keep some color in there because most people can't tell at all.

SANCHEZ: All right. You sucked us in. Now the question is a guy like me doesn't know where he would possibly go to buy something that's right, or sold right. Where do we go? Where should we buy a diamond?

WILLIS: Well, you really should shop around because you want to get the best price obviously. But it is important to think about what you need. With brand name, you may pay more, but the service may be excellent. Maybe you want to build a relationship with a family jeweler.

If you're going online again, check out bluenile.com, which has only certified diamonds. But I got to admit it was so much fun to try this stuff on.

(BEGIN VIDEO CLIP)

DE QUERCIZE: This is what we call a high jewel. Only one piece in the world and it will never be reproduced.

WILLIS (on camera): So you are saying that the sum is worth more than the parts.

DE QUERCIZE: Absolutely.

WILLIS: So how much is that sum worth? DE QUERCIZE: More than $1 million.

WILLIS: Beautiful. Uh! Just gorgeous.

(END VIDEO CLIP)

WILLIS: Ah! My goodness, it was too much fun, Rick, I'm telling you. Just beautiful jewelry. And I hope my husband's watching.

(LAUGHTER)

SANCHEZ: Yes, I bet. He's in a lot of trouble.

Gerri Willis, as usual always a pleasure. Thanks for bringing us that information that all us guys are going to be able to use right away.

WILLIS: Thank you, Rick.

NGUYEN: Valentine's Day, Monday. Get down to the jewelry store. And here's just a hint. The bigger the diamond, the bigger the smile.

SANCHEZ: That's right.

NGUYEN: Yes. Don't forget that.

SANCHEZ: And the love?

NGUYEN: Always there.

Well, here's what we're following. Tossing anything out of a car window is a no-no, but tossing out a baby? That is outrageous.

SANCHEZ: Yet a newborn was thrown from a moving vehicle. It's in south Florida. The trails -- pardon me, the details on this are just really straight ahead.

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 February 11, 2005 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN CO-ANCHOR: We do have some interesting stories that we're going to be sharing with you on this day. A baby that is tossed out of a car, we'll bring it to you. It's from south Florida.
The other side of the country, up in Oregon, we're going to tell you about a suicide pact and how police are really just trying to figure this one out.

BETTY NGUYEN, CNN ANCHOR: Absolutely. Here's what we have happening right now in the news.

Defense Secretary Donald Rumsfeld makes a surprise visit to Iraq today. He is viewing the progress of Iraqi forces and meeting with U.S. troops. Rumsfeld also met with Iraqi interim Prime Minister Iyad Allawi. Rumsfeld told U.S. troops that when Iraqis have the confidence to defeat the insurgents, American forces can then go home.

Well, more than 50 people are reported dead after a dam gave away in southwestern Pakistan. Dozens are missing. Floodwaters have washed out a coastal highway and bridges, cutting off many areas. The dam break came after the region's heaviest rains and snowfalls in years.

Police, they have arrested the alleged ringleader of what they say is a Valentine's Day suicide pact group. Now authorities in the U.S. and Canada are in desperate search for the group's 32 members. The group made its plans in an internet chat room. And police say one member was a mother who planned to kill her two children and then herself. We, of course, will have a live report a little bit later this hour.

Right now, police in south Florida want to talk to the couple that tossed a newborn baby boy out of a moving car. Here is a picture of that baby. The baby had a plastic bag over its head. Doctors say the infant is in serious condition, but improving. A woman who brought the baby to police say she saw the couple arguing before the baby was thrown on to the roadside. Just amazing.

So as you see, we've got a lot to talk about today. Good morning, everybody. I'm Betty Nguyen sitting in for Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez.

Iraq front and center this morning for two reasons, really. One, Secretary of Defense Rumsfeld makes a surprise appearance there. Two, insurgents make a surprise attack. Interestingly enough, the secretary was stressing how Iraqis need to eventually take over their own security when Iraqi nationals came under attack.

Several cars pulled up in front of two Baghdad bakeries and the masked gunmen opened fire. Nine workers were killed.

For the latest on these events, we take you to Baghdad and Clinton senior international correspondent Nic Robertson who is following things for us.

Rick, over to you.

NIC ROBERTSON, CNN SENIOR INT'L. CORRESPONDENT: Rick, hello. Certainly when Donald Rumsfeld was arriving in Baghdad, just as that was happening, a car bomb went off outside a Shiite mosque about 45 miles northeast of Baghdad. Twelve people were killed when the car bomb detonated. Four of them were members of Iraqi National Guard force who were patrolling the mosque at the time. Eight civilians also killed there, 23 people wounded.

Another attack earlier in the day in Baghdad on Shiites; this at a Shiia bakery. Two bakeries right next door to each other. And according to the police, gunmen pulled up. About a dozen gunmen jumped out of the vehicles. Fired shots at the workers in both bakeries. Killing nine of them. The police say that they believe this is an effort to stimulate sectarian tensions between the Sunni Muslim insurgents and the Shiia community. Possibly ahead of a big Shiia festival coming up in about a week's time.

As Donald Rumsfeld met in Baghdad, he met with Iyad Allawi, the interim prime minister. The prime minister thanking the secretary of defense for the help from U.S. forces to provide security for the elections. Donald Rumsfeld telling Iyad Allawi that he's very proud to see that the elections had gone ahead well.

Rumsfeld met earlier in the day in Mosul, where he flew into while it was still dark for security regions. He met there at a medical facility with a soldier and gave that soldier a Purple Heart. The soldier had been shot in the hand just yesterday by a sniper. The second Purple Heart this soldier' has received in just four months.

The secretary of defense went on to address troops there, tell them that he was very proud of the work that they've done in providing security for the elections. Proud of their families for supporting them while they're on duty inside Iraq.

But perhaps the central focus of the defense secretary's visit here, to review the training of Iraqi security forces. And he saw their Special Forces undergoing training, practice, firing automatic weapons, handguns on a range. He saw them even descending, repelling down ropes from helicopters, doing simulated assaults on buildings.

All part of the focus now for U.S. troops here to begin emphasizing and pushing forward with training of Iraqi security forces in Baghdad. Iraqi security forces already beginning to take control of some of the more contentious neighborhoods -- Rick. SANCHEZ: Interesting confluence of events taking place today in Iraq. We thank you, Nic Robertson filling in for us. We certainly appreciate it.

Betty, over to you.

NGUYEN: And this just in to CNN right now, the White House has rejected direct talks with North Korea. This is some response to North Korea reportedly demanding bilateral talks with the United States over the communist statements that it has nuclear weapons. Now, that is according to a South Korean newspaper in its interview with Pyongyang's envoy to the United Nations.

CNN's Sohn Jie-Ae has some reaction from neighbors on the Korean Peninsula.

(BEGIN VIDEOTAPE)

SOHN JIE-AE, CNN CORRESPONDENT (voice-over): A handful of anti- North Korean protesters rallied near the U.S. Embassy in Seoul. "We demand a strong response to North Korea's declaration of having nuclear weapons and pulling out of the six-party talks," they chant. "The time for negotiations is over. Regime change is the only way to go," they claim.

But others in Seoul's streets are more reserved.

Are you surprised, we asked this office worker?

"Not at all," she says. "That I expected. But I'm afraid that this will worsen things between North Korea and the U.S., and that could even lead to war."

Gloomy sentiments from shoppers, who returned to this major fashion district after a three-day Lunar New Year holiday.

"I'm not surprised so much as disappointed," says this man. "I had hoped that a peaceful resolution of the nuclear issue would help our economy."

This office worker was just angry.

"I think what North Korea did was stupid," he said. "They just made the wrong move. And I think if that is the way they want to play, South Korea should also declare we are making nuclear weapons."

South Korea convened an emergency meeting of its National Security Council and expressed deep concern. Reiterated its stance that it would not condone a nuclear North Korea, and urged the North to return to the six-party talks.

Foreign Minister Ban Ki Moon is in Washington and expected to discuss the issue with U.S. Secretary of State Condoleezza Rice. The round of diplomatic flurry, some analysts say, may be exactly what North Korea is after. MICHAEL BREEN, NORTH KOREA ANALYST: I mean what they've successfully done is they've shifted the subject of discussion away from nuclear weapons to please persuade us to come to the talks. Give us some concessions. You know, make some promises. Give us some cash, do something. And this is what they do all the time.

JIE-AE: Such well-known North Korea negotiating tactics may be prompting many in and out of South Korea to react carefully to North's recent announcement.

(on camera): While the declaration that it possessed nuclear weapons caused little surprise on Seoul's streets or in government offices, it did cause great concern. Concern that once again tensions would rise on the Korean Peninsula.

Sohn Jie-Ae, CNN, Seoul.

(END VIDEOTAPE)

NGUYEN: And again to recap, North Korea has rejected six-party talks. Instead it wanted to speak directly with the United States. But the United States says that it will reject those direct talks with North Korea.

And of course, we do want to remind you that senior White House correspondent John King will have a live report on all of this coming up shortly. Also this reminder, you will want to stay tuned to CNN day and night for the most reliable news about your security.

SANCHEZ: Now on to Washington, where we continue to follow a story. In just about half an hour President Bush will take part of the swearing-in ceremony for secretary of Health and Human Services. His new one, that is. Former Utah Governor Mike Leavitt has already been on the job. We're going to bring you the ceremony live as it happens, for the fill in of Wisconsin former Governor Tommy Thompson.

NGUYEN: In Washington and much of politics, perception is reality. And that may be central to the odd case of Jeff Gannon. A fictitious name for a person with real White House press credentials. But is he a real journalist.

Well, Tom Foreman takes a look at questions of credibility overshadowing the reporter and maybe the administration.

(BEGIN VIDEOTAPE)

Al Qaeda's second in demand...

TOM FOREMAN, CNN CORRESPONDENT (voice-over): On the radio, on the internet, on dozens of TV channels, thousands of people call themselves journalists. And that is raising a sticky question when it comes to access to the White House, which ones should be treated like real reporters.

SCOTT MCCLELLAN, WHITE HOUSE SPOKESMAN: Good afternoon, everybody. FOREMAN: Press secretary Scott McClellan said, "When you have changing media, it is not an easy issue to decide or try to pick and choose who is a journalist. It gets into the issue of advocacy journalism. Where do you draw the line? "

GEORGE W. BUSH (R), PRESIDENT OF THE UNITED STATES: Good morning.

FOREMAN: A question to the president by a conservative internet reporter sparked the debate. Jeff Gannon of talonnews.com took aim at Democratic senators last month.

JEFF GANNON, INTERNET REPORTER, TALONNEWS.COM: How are you going to work with people who seem to have divorced themselves from reality?

FOREMAN: Liberal websites call Gannon a shill for conservative interests. Congressional Democrats asked why he was allowed into the press briefing. Gannon is defending himself.

GANNON: Well, Talon News is a legitimate, conservative online news service. And my questions are think things that my readers, 700,000 daily subscribed readers want the answer to.

FOREMAN: Still, under a torrent of what he calls unfair internet assaults on his personal life and threats against his family, Gannon has resigned from Talon News. And even White House reporters who like him say that's for the best.

BOB DEANS, FMR. PRESIDENT, WHITE HOUSE CORRESPONDENTS ASSN.: The public has a hard time right now discerning who to trust with the news.

FOREMAN: Bob Deans is the former president of the White House Correspondents Association.

DEANS: They ought to be able to know that we are who we say we are. We don't have a political ax to grind. And we're going to deliver the news straight up. And that if we don't, our editors are going to yank us.

FOREMAN (on camera): Getting a permanent press pass at the White House is difficult. Generally, only big news organizations can do it. But daily press passes are handed out to almost anyone in the media who passes a basic security test. That is how Jeff Gannon got inside for two years.

(voice-over): And although he is now gone, White House journalists say others with clearly political points of view remain. While the White House says that it's not the administration job to decide who is or is not a legitimate journalist.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

SANCHEZ: Here's another big story that we're going to follow on this day. People do throw all types of things out of cars. We've seen it. But a newborn baby? That seems well, insane. Still to come, a disturbing story of a baby tossed out of a moving vehicle, umbilical cord and all.

NGUYEN: My goodness.

Well, it was an email solicitating death. And people, they signed up. We have those details straight ahead.

SANCHEZ: And after the shock and awe, details now emerging around the royal engagement. A closer look at the Camilla Parker- Bowles' ring-ring.

(COMMERCIAL BREAK)

SANCHEZ: The North Koreans are saying they have nukes, and further, they're saying they don't want to discuss this with other countries except the United States. They want bilateral talks with the United States and the United States alone.

Interestingly enough, this subject or maybe an answer to it might be a better explanation, came up in the Gaggle today. Our White House correspondent John King was there. He attended the Gaggle. He's going to give us a sense of how the White House is responding to this comment from the North Koreans.

What is it -- John?

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Rick, the answer to the North Koreans from the Bush White House this morning as it has been consistently for the past two years is no, that there be no direct negotiations between Washington and Pyongyang. That if North Korea wants to discuss this or any other issue with the United States it needs to do so in what the White House calls the six-party talks.

Those talks have not been held since last year. North Korea broke them off to see if perhaps President Bush would lose in the presidential election in this country. They involved: Russia, China, South Korea, Japan, the united s and North Korea.

Scott McClellan, the White House press secretary saying there will be no direct negotiations between Washington and North Korea. But that if the North Koreans want to talk to the U.S. envoy, as Scott McClellan put it there's, quote, "Plenty of opportunity in the context of the six-party talks for North Korea to speak directly to the United States." This is one of the debates.

Of course, big issue is North Korea's nuclear weapons program. But there have been no substantive negotiations on that because of the debates over process. North Korea wants one on one talks. The United States says it has to happen in conjunction with all of North Korea's neighbors. And why does the Bush White House say that? Well, its rationale is that there was direct negotiations -- there were direct negotiations that resulted in an agreement back in 1994 between the Clinton administration and North Korea, and North Korea promptly broke that deal.

So the United States says if there is to be any new agreement it doesn't want just two parties signing on. It wants North Korea's neighbors signing on as well so that they could closely watch what happens.

SANCHEZ: Does it seem to you, John, that perhaps the White House and the Bush administration is trying to call their bluff, essentially saying we think what you're trying to do is use us to get something else?

KING: Well, that is certainly the case. And this has happened again and again, and again in the history of these off and on six- party talks. North Korea has says no, it will only negotiate directly with the United States. The Bush administration has held firm. And there have been several rounds of the six-party talks.

How do you get the parties back to the table now? The Bush White House says that so long as Japan, China, South Korea and Russia hold firm with the United States, put pressure on Pyongyang, especially the Chinese, they are the key player here, that perhaps this will turn out as it has in the past.

There's blustery rhetoric, the White House would consider it belligerent rhetoric from North Korea. The Chinese and others intervened and say the only way to talk is to come back the table. The White House is hoping that will happen, but there are no certainties. Pyongyang, of course, Rick, one of the most unpredictable regimes in the world.

SANCHEZ: Our senior White House correspondent John King with the very latest information out of the White House as it happens. We thank you, John.

NGUYEN: And still to come here on LIVE TODAY, the future king stoops, ah, but to conquer that is.

SANCHEZ: There's a reason for it then, huh?

NGUYEN: Uh-huh.

SANCHEZ: Coming up next, the tales of the royal jewel that Prince Charles has slipped on Miss Camilla -- Mrs. Camilla Parker- Bowles' hand.

(COMMERCIAL BREAK)

NGUYEN: All right. Talk about tradition, Camilla Parker-Bowles says Britain's Prince Charles proposed to her on bended knee. The couple greeted about 250 well-wishers at the engagement party last night at Windsor Castle. Look at this. The engagement ring is a royal family heirloom. A square cut centered diamond, set in platinum with three diamond baguettes on either side. I know you wanted to know, Rick. The wedding date is set for April 8. SANCHEZ: Here we go, folks. Time for Gerri-cam, what do you think she's going to be talking about today? Try this on for size, diamonds, Betty.

NGUYEN: Our best friend.

SANCHEZ: Yes, for Valentine's Day, no doubt. Picking the good from the bad, here is CNN's personal finance editor Gerri Willis.

OK. Start us off. What do we need to know?

GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Hey, Rick. This is an important topic, you better be taking notes here.

SANCHEZ: I'm taking notes. I'm taking notes.

(LAUGHTER)

WILLIS: In order to get the best advice on buying a gem, of course, we had to check out the real thing at a nice little store on Fifth Avenue right here in New York City. A gem is a big investment. Here is the first thing to get out of your head. Forget about keeping up with the Joneses. Buying jewelry for someone is a personal thing, not a competition.

(BEGIN VIDEO CLIP)

STANISLAS DE QUERCIZE, PRESIDENT/CEO, CARTIER: Don't try to impress too much the people around you. You're in love with somebody forever and for a long period of time, hopefully. But this is very personal. You should try to find something that you love independently from the fashion that will change.

(END VIDEO CLIP)

WILLIS: So take the gal with you, too. When guys buy jewelry alone, they actually spend significantly more because they're afraid of getting something that's just not right.

My new friend at Cartier also told me about the four C's.

(BEGIN VIDEO CLIP)

DE QUERCIZE: Color, clarity, weight-carat, and the cut.

WILLIS (on camera): And so those are the things that I'll be evaluating. Can I do it without any training though? It seems to me that most people who do that are professionals.

DE QUERCIZE: Yes. But Gerri, you fell in love without training. So you don't need the training to pick out the right stone.

(LAUGHTER)

(END VIDEO CLIP) WILLIS: Well, you don't want to go shopping for a gem while blinded by your love. Remember those four C's. But most of all, a good cut is the most important because that's what makes a gem sparkle.

SANCHEZ: How do you tell flawed from not flawed?

WILLIS: Well, you have to go with the fifth certification. That's certification, the fifth C. You only want to buy a certified gem. That means its quality was evaluated by an independent gem lab and is guaranteed. Most major, sophisticated jewelry houses only sell certified gems, but not every jeweler does. If your store says they will send you the certificate afterwards, you've got to be skeptical.

SANCHEZ: Now, here is a question most guys are asking right away to see if we can save a little bit of money. Does it really have to be perfect?

NGUYEN: Yes.

(LAUGHTER)

WILLIS: I heard Betty say yes. But listen, you can get away with some cheats. Listen to this. There are a few ways you can trim your costs, weight and color, mostly. With weight, prices on diamonds jump at the carat and half carat marks. So if you buy a diamond just shy of that one-carat mark, you can save some money. Since the naked eye can't decipher flawless from nearly flawless, you can keep some color in there because most people can't tell at all.

SANCHEZ: All right. You sucked us in. Now the question is a guy like me doesn't know where he would possibly go to buy something that's right, or sold right. Where do we go? Where should we buy a diamond?

WILLIS: Well, you really should shop around because you want to get the best price obviously. But it is important to think about what you need. With brand name, you may pay more, but the service may be excellent. Maybe you want to build a relationship with a family jeweler.

If you're going online again, check out bluenile.com, which has only certified diamonds. But I got to admit it was so much fun to try this stuff on.

(BEGIN VIDEO CLIP)

DE QUERCIZE: This is what we call a high jewel. Only one piece in the world and it will never be reproduced.

WILLIS (on camera): So you are saying that the sum is worth more than the parts.

DE QUERCIZE: Absolutely.

WILLIS: So how much is that sum worth? DE QUERCIZE: More than $1 million.

WILLIS: Beautiful. Uh! Just gorgeous.

(END VIDEO CLIP)

WILLIS: Ah! My goodness, it was too much fun, Rick, I'm telling you. Just beautiful jewelry. And I hope my husband's watching.

(LAUGHTER)

SANCHEZ: Yes, I bet. He's in a lot of trouble.

Gerri Willis, as usual always a pleasure. Thanks for bringing us that information that all us guys are going to be able to use right away.

WILLIS: Thank you, Rick.

NGUYEN: Valentine's Day, Monday. Get down to the jewelry store. And here's just a hint. The bigger the diamond, the bigger the smile.

SANCHEZ: That's right.

NGUYEN: Yes. Don't forget that.

SANCHEZ: And the love?

NGUYEN: Always there.

Well, here's what we're following. Tossing anything out of a car window is a no-no, but tossing out a baby? That is outrageous.

SANCHEZ: Yet a newborn was thrown from a moving vehicle. It's in south Florida. The trails -- pardon me, the details on this are just really straight ahead.

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