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CNN Live Today

Bolton at the U.N.; London Terror; President Bush Signs CAFTA Into Law

Aired August 02, 2005 - 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: Let's take a look at what's happening "Now in the News."
Some anxious moments in London this morning. Police responding to reports of smoke coming from a bus, but they now say it turned out to be engine trouble. The incident triggered a security alert in the city, still jittery from the attacks on its transit system.

A political battle gives way to decorum and diplomacy. The new U.S. ambassador to the United Nations presents his credentials to the secretary-general this hour. John Bolton's appointment to the post followed a bitter fight that stalled his nomination in the Senate.

Saudi Arabia's King Fahd was buried today in a simple unmarked grave. The funeral and burial for the Saudi monarch were in keeping with strict Muslim traditions. King Fahd died yesterday after ruling the kingdom for 23 years. He was succeed by his half-brother, the former Crown Prince Abdullah.

President Bush signs the Central American Free Trade Agreement this hour. The bill is known as CAFTA for short.

It won final approval in the House last week by a two-vote margin. A close one. It's designed to remove trade barriers between the U.S. and six Latin American countries. Critics say that it could send more American jobs overseas.

Flames swept through an apartment complex for senior citizens in Woodlands, Texas, this morning. Fire officials say four people were injured, about 150 were forced from their apartments. Some tenants had to be rescued from their balconies. No word on the cause of the fire or the conditions of the injured.

Welcome to CNN LIVE TODAY. Let's check the time.

It is 4:00 p.m. in Maradi, Niger; 6:00 p.m. in Gaza and Riyadh, Saudi Arabia. From CNN Center in Atlanta, good morning. I'm Daryn Kagan.

First up this hour, a diplomatic nicety at the United Nations. New U.S. Ambassador John Bolton presents his credentials this hour.

Our Senior U.N. Correspondent Richard Roth is at his post this morning to explain how that works and how Mr. Bolton, Ambassador Bolton, gets to work.

Good morning.

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Good morning, Daryn.

One hundred ninety-one ambassadors here, usually. And every time they arrive for work, before they officially assume their duties, they hand over their "credentials" from their government. In this case, John Bolton, representing the United States.

He arrived yesterday, right after President Bush said he was making Bolton a recess appointment. And he went right to work at the United States mission to the United Nations.

John Bolton will be here within about a half an hour, and he's going to turn over the credentials to Kofi Annan. There are usually some remarks, which will be interesting to listen to from the new ambassador.

Bolton has a lot of work on his plate, especially trying to improve the work of the United Nations organization. One ambassador on the Security Council says, in an answer to a question from CNN, there's no reason to be scared of Bolton.

(BEGIN VIDEO CLIP)

MOHAMMED BAALI, ALGERIAN AMBASSADOR TO THE U.N.: Mr. Bolton has his views on the United Nations. We only hope when he comes here and works with us, he'll realize that -- I'm sure he already does -- that the United Nations is an irreplaceable forum, and that we have to work together to make our world safer and more prosperous.

(END VIDEO CLIP)

ROTH: All right. That's the Algerian ambassador to the United Nations, Mohammed Baali. Right now, let's listen to some advice from Chile's ambassador, Heraldo Munoz.

(BEGIN VIDEO CLIP)

HERALDO MUNOZ, CHILEAN AMB. TO THE U.N.: The name of the game in the U.N. is dialogue, compromise and negotiation. And that if you think that this is the State Department, it won't work. Nobody can work in solitary at the United Nations, particularly in the Security Council. So somebody smart like Bolton probably will realize that he has to negotiate, that he's got -- that he has peers at the Security Council and in the rest of the ambassadors of the U.N.

(END VIDEO CLIP)

ROTH: It's the first time an ambassador from the United States has come here without a formal vote of approval in the U.S. Congress. It's likely Bolton will keep a very low profile in the days and weeks ahead, doing a lot of work, first, behind the scenes, getting to know some of his other ambassadors. All of this before the 60th anniversary of the United Nations, which will bring 180 world leaders here in mid-September -- Daryn.

KAGAN: It's going to be a busy month ahead. Thank you.

Richard Roth live at the U.N.

On to the shuttle and a long distance phone call. President Bush dialed up Discovery about 40 minutes ago. You saw it live here on CNN. In case you missed it, here's part of his conversation with the astronauts.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Well, listen, I want to thank you, Commander, and thank your -- thank your fellow astronauts there. I agree with you, I think what you're doing is really important. And you've got a strong supporter for your mission here in the White House.

I will tell you, Laura went down and watched the launch in Florida with my little brother, Jeb, and was -- came back all excited about -- about, you know, the energy that -- there on the east coast of Florida. But we're with you. And wish you all the very best.

(END VIDEO CLIP)

KAGAN: There is a challenge ahead for the astronauts. Tomorrow, maybe Thursday, they'll take a spacewalk -- actually, one of them will -- trying to do a first-of-its-kind repair on the shuttle's belly.

The job itself is simple, remove or snip two strips of cloth that are sticking out between Discovery's heat tiles. NASA is worried those strips could cause Discovery to overheat when it returns to Earth next Monday. But the spacewalkers will have to move gingerly. One wrong bump could damage the shuttle's fragile heat tiles.

A false alarm rattled nerves in Britain today in the aftermath of the attacks on the transit system. Meanwhile, police are questioning two more suspects arrested in connection with the July 21 botched bombings.

Our Chris Burns is following developments in London, joins us live now.

Chris, first, about what happened earlier today?

CHRIS BURNS, CNN CORRESPONDENT: Daryn, very understandable in a city that's very much on edge. Less than a month since those fatal bombings that killed more than 50 people in those suicide bombings in the subways, on a double-decker bus, and less than two weeks since the other botched bombings that didn't injury anybody but caused quite a bit of commotion. Now that you consider a bus with smoke rising from it, near King's Cross Station, that was near where there were -- there was one of those attacks on July 7, and that certainly would cause a lot of concern among everybody.

Police cordoned off the area, they sent emergency crews, a bomb squad, ambulances. It turned out just to be an engine fire on that bus. But certainly a lot of concern there. One person did get injured. They hurt their ankle coming out of the bus. Quite a bit of commotion inside that bus.

And across the city, a lot of concern, people looking at suspect bags. And so that really, it does fit in the context. The city very much on edge, looking for the possible next attack here -- Daryn.

KAGAN: And what about the latest on this investigation and more questioning of possible suspects on the previous incidents?

BURNS: Yes, Daryn, there were two more people arrested yesterday in these latest July 21 botched bombings. That brings some two dozen people who are being held, including the four who are accused of carrying the bombs, the failed bombs on three subway trains and on a double-decker bus.

One of those gentlemen, Hamdi Issac, is being held by the Italians. The British would like to get their hands on them. It does look like that -- that extradition process could be delayed. And that could make things difficult, because the British would like to speak to him very quickly to get to the bottom of it.

The clock is ticking on these others who are being held here. Under British law, they only have 14 days to either charge them or release them -- Daryn.

KAGAN: Chris Burns live from London.

Chris, thank you.

And this news from Iraq today: six Marines have been killed in combat near the western city of Haditha. And close by, in the town of -- another Marine was killed in a suicide attack. The seven deaths bring the number of U.S. troops killed in Iraq to 1,800.

Fighting famine in Niger. Food is getting there, but is it reaching those who need it the most? A closer look just ahead.

Plus, children diagnosed with Attention Deficit Disorder, is it the correct diagnosis? The fear of misdiagnosis ahead in our "Daily Dose."

And the CAFTA bill becomes law in about 15 minutes. The president will sign the Central American Free Trade Agreement at the White House. Live coverage of that event when it begins.

But do you know what CAFTA really means and why anyone in the U.S. should care about it? The basics of CAFTA, coming up next.

(COMMERCIAL BREAK)

KAGAN: Thinking about the hurricane season, it certainly got off to a fast and furious start this year. So what's next? Well, this morning, national forecasters updated their outlook for the season. They say the worst may be yet to come.

Meteorologist Jacqui Jeras here with a look at what is expected.

(WEATHER REPORT)

KAGAN: We go right now live to the East Room of the White House. President Bush in a bill-signing ceremony, making CAFTA, the Central American Free Trade Agreement, into law.

(INTERRUPTED BY LIVE EVENT)

KAGAN: And with that, President Bush signs on, at least the United States signs on, to CAFTA, the Central American Free Trade Agreement. Two more countries still need to ratify that that are in the agreement.

This is something President Bush very much wanted. You heard him talk about the things he believes in, like free trade and bringing down trade barriers.

There have been critics from both parties, interestingly enough, of this. A lot of criticism from the sugar and textile industries, believing that a lot of their jobs will be going overseas.

This was a close vote in the House of Representatives. Just how close? Our Bob Franken is standing by to tell us more about the politics behind the deal -- Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well, a signing ceremony is what we just witnessed. And in Washington speak, a signing ceremony is another way of saying a group gloat.

They are gloating over the very close vote in the House of Representatives, two votes, by the way. Two votes that were the difference between CAFTA passing and not passing.

Trade legislation always faces a real rough battle because of a variety of parochial interests and opposition from labor. Many of the labor people were saying that if you wanted to look at the damage that trade legislation can do, look at what happened with NAFTA.

They contend that, contrary to claims that it has improved the economy, that it has really meant a departure of jobs from the United States. The others on the other side say that's simply protectionism, that you can't fight the realities of a world that is too small now for national trade barriers.

In any case, with those arguments out of the way, the president citing precedence that really go back to the Monroe Doctrine, saying that the U.S. has a particular responsibility for the other nations of the Americas. And so now he is signing CAFTA as an indication of that, CAFTA, the Central American Free Trade Agreement -- Daryn.

KAGAN: All right. Bob Franken, live at the White House.

Thank you.

So behind the -- beyond the bill-signing and the politics of it, what does it mean for you at home, to your job, to the things you buy, the things you're trying to sell? Our Chris Huntington is here to explain the economics of it -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Thank you.

Well, let's begin by reviewing exactly which countries are involved her. As has been pointed out by both the president and Bob, this is an agreement that involves five Central American countries, as well as the Caribbean nation of the Dominican Republic.

Take a look at the map here. It's a little bit jumbled, but you get the idea that is, of course, focused around Central America.

This will complement NAFTA. And we'll get more on that in just a second.

Now, those in favor the bill, obviously President Bush, chief among them, say that this really will help to raise the level of U.S. export markets in particular. And people point, in fact, to how it could help U.S. farmers by as much as an estimate of about $1.5 billion per year by opening up those markets to U.S. exports.

Strengthening freedom and democracy, vague exactly how this would happen. But generally, the push from the administration has been that if you increase trade, so will follow the morays and the laws of the United States. And there's a great deal of hope on the part of the administration that more trade and more commercial interaction will lead to higher standards of environmental and labor laws in particular.

Finally, there is the notion that CAFTA could reduce illegal immigration simply by increasing the number of attractive jobs in the region. That leads, of course, immediately to the first big opposition point. And that is that it would cost U.S. jobs. And the experience from NAFTA seems to give some weight to this argument.

Statistics from the Department of Labor point that perhaps as many as 900,000 U.S. jobs were lost to the NAFTA countries, chiefly Mexico, in the first 10 years of that agreement. Other concerns about CAFTA would be that it could hurt the U.S. trade deficit. Again, because it would promote more imports to the United States than likely offset by exports.

Hurt labor and environmental laws. The key point here is that the CAFTA agreement simply calls on the member countries to enforce its own labor and environmental standards. So not necessarily those of the United States. Still concern there, for instance, that workers in those CAFTA countries would not be held to the same standards or be given workplace environment standards that would be customary here in the United States.

Finally, there is a small provision but important by some critics' measure, and that is that the CAFTA, some fine print in the CAFTA would limit access to certain medications, particularly medications regarding AIDS. It's a small measure, but very important to folks in that community -- Daryn. KAGAN: All right. Chris Huntington.

Chris, totally off-the-mark question for you here.

HUNTINGTON: Sure.

KAGAN: Have you read the latest "Harry Potter" book?

HUNTINGTON: I have not.

KAGAN: You have not. I told you it would be random.

Well, you don't have to read it. You can listen to it. The man who is the voice of the "Harry Potter" books, he's going to be with me here a little bit later in the hour. We're going to talk Harry, we're going to talk muggles, Professor Dumbledore. All of it.

How did he come up with the voices for those famous characters? That's ahead.

Right now, a quick break.

(COMMERCIAL BREAK)

KAGAN: Let's take a look at what's happening "Now in the News."

The newly-named U.S. ambassador to the United Nations reports for duty. John Bolton is at the U.N. this hour to present his credentials to Secretary-General Kofi Annan. President Bush named Bolton to the post yesterday with a recess appointment after Bolton's nomination was stalled in the Senate.

The Chinese oil company CNOOC has dropped its $18.5 billion bid for Unocal. CNOOC says it is pulling out because of the political environment in the U.S. Many in Congress oppose the state-owned Chinese company's attempt to buy a U.S. company. CNOOC's withdrawal clears the way for Unocal to strike a deal with U.S.-based Chevron.

President Bush gives well wishes to astronauts on board the Space Shuttle Discovery. Mr. Bush used a telephone hookup to phone the crew earlier today. The president praised the astronauts for taking risks for the sake of space exploration. He told them Americans are praying for their safe return.

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