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Washington's High-Flying Wheelers and Dealers; Kidnapped Journalist

Aired January 18, 2006 - 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: And let's go ahead and check some stories "Now in the News."
A unanimous ruling. The U.S. Supreme Court has ordered a lower court to reconsider its rejection of a controversial abortion law. The New Hampshire law requires that a parent be informed 48 hours before a child under 18 has an abortion. The Supreme Court steered clear of a major ruling on the issue. Instead, the justices simply ruled that the lower court went too far by permanently blocking the law.

West Virginia coal miner Randal McCloy Jr. is said to be making steady progress as he recovers from carbon monoxide poisoning. McCloy is now out of intensive care. He is now said to be in a light coma.

(BEGIN VIDEO CLIP)

ALY GOODMAN GREGG, MCCLOY FAMILY SPOKESWOMAN: The family wishes to express its gratitude to everyone who has reached out to them with letters, cards and prayers. The family remains hopeful that Randy will continue to show improvement, and they are grateful and encouraged by your support.

(END VIDEO CLIP)

KAGAN: CNN's Anderson Cooper will broadcast live tonight from West Virginia with the latest on the coal mining tragedy.

At the White House this hour, President Bush is meeting with some Iraqis who say they suffered at the hands of Saddam Hussein. The former dictator who is now on trial in Baghdad is accused of numerous human rights violations. The court proceedings resume next week.

NASA's mission to Pluto is still on hold. For the second straight day, the space agency has scrubbed the launch of the New Horizon spacecraft. Bad weather in Maryland is to blame. A storm knocked out power to the facility in Laurel, Maryland, that's managing operations for the spacecraft.

Another launch is planned for tomorrow. An attempt, at least.

Off North Carolina, the Coast Guard is searching for two crew members of a tugboat that sank in seas in gale-force winds. The boat went down about 40 miles off of Cape Fear. Six other crewmembers were rescued from the sinking boat.

Good morning. Welcome back to the next hour of CNN LIVE TODAY. Let's check some of the time around the world.

Just after 11:00 a.m. in Washington, D.C., where your lawmakers are back to work today; just after 7:00 p.m. in Baghdad.

From CNN Center in Atlanta, I'm Daryn Kagan.

We begin with Washington's high-flying wheelers and dealers. A recent guilty plea by a prominent lobbyist tainted a trade that to some who already had a pretty shady image. Facing that scandal and voters, Congress suddenly pushing for tighter ethics rules that would put new limits on lawmakers, on lobbyists as well.

Republicans are out with their plan. And in three hours, Democrats will offer their own.

Is it the end of golf junkets, box seats and lavish lunches? Probably not.

Congressional Correspondent Ed Henry will be watching it unfold today on Capitol Hill.

Hi, Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Daryn.

That's right, the race is on from both sides to clean house. Republicans, in particular, under heavy political pressure from Democrats who are trying to capitalize on all of these scandals.

Today, as you mentioned, we're going to see Senate Democratic Leader Harry Reid, House Democratic Leader Nancy Pelosi roll out a pretty aggressive reform plan. They really want to in particular zero in on the Jack Abramoff scandal we've heard so much about. In fact, they're going to name various provisions in this legislation after some of the miscreants, in their mind.

For example, the Jack Abramoff provision in this legislation will crack down on all and basically ban all privately funded travel for lawmakers and staffers. This Jack Abramoff provision will also ban all gifts for lawmakers and staffers from lobbyists.

In fact, Senator Reid, Congresswoman Pelosi have already instituted a zero tolerance policy this week. Starting effective immediately, no gifts from lobbyists at all, meals or anything, for there staff, regardless when this legislation passes.

And knowing all of this coming today, yesterday, Republican Speaker of the House Dennis Hastert tried to get ahead of it, deal with it head on. He came out with an aggressive reform plan of his own.

He will not ban all gifts, but he wants to cut it down, limit it to only $20 in gifts from lobbyists instead of the current limit of $50. He also does want to, like the Democrats, ban all privately funded travel. There are some lawmakers, though, saying there already are such rules in place. Lobbyists were not supposed to be funding trips, we don't need new laws, we just need lawmakers who will follow the law, follow the rules. But I can tell you, the stampede is on.

And, in fact, Senator John McCain, who has been pushing for some of these changes for years to no avail is so amused by this stampede he said yesterday it just shows to him that if you live long enough, almost anything can happen here on Capitol Hill -- Daryn.

KAGAN: Well, you can probably attest to that, Ed, from everything that you've seen.

I want to talk about something we saw live yesterday after we finished this program, and that was Trent Lott's announcement that he will indeed run for re-election. The reaction there on Capitol Hill and how that means things are unfolding in terms of the power grab?

HENRY: Very mixed emotions, in some ways, I think, for Republicans. They were breathing a sigh of relief because they really wanted Lott to come back. They were worried that that seat might go Democrat. And the last thing they need with such an uncertain midterm election coming up is another seat in play, especially down in the Deep South, which republicans are -- you know, expect to have.

But on the other hand, there's some heartburn among Republicans because they know that Trent Lott is kind of a loose cannon these days. Ever since he's been plotting this comeback in the last couple years, rehabilitating himself politically in the wake of that joke at the Strom Thurmond birthday party, he's been firing verbal bombs at the White House, at the Republican leaders, like Bill Frist, and he's now talking about maybe running for leadership again. Maybe the top job, maybe the number two job, maybe the number three.

He's keeping all of his options open. In fact, just in the last half-hour he was having a press conference on the Hill saying he's not announcing that he's running for leadership but he's keeping his options open -- Daryn.

KAGAN: And we're looking at live pictures of him speaking on Capitol Hill as we do just that.

Hey, Ed, I want to change things up a little bit here. I'm going to be tossing to a Bob Franken piece in just a moment talking about lobbyists, but you were nice enough to show my mom and me around Washington last summer. You told us where the term "lobbyist" comes from.

HENRY: That's right. It's from the Willard Hotel, which I think Bob mentions in his piece. The Willard Hotel, where I believe it was President Grant used to stay. And all of the people trying to peddle influence would wait in the lobby of that hotel downtown. And that's how they got the term "lobbyist," because they would wait for him in the morning, wait for him at night, and that's where it started.

And now you see that going on not in the hotels, but in the restaurants. And you see it in the hallways up here as well -- Daryn.

KAGAN: Oh, how far they have come, from the lobby, to lobbyists.

HENRY: Progress.

KAGAN: Yes. Thank you. Thank you, Ed.

And on that, let's get more on that and our Bob Franken.

(BEGIN VIDEO TAPE)

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice over): Now more than 130 years later, lobbyists, backed by the mother's milk of politics, money, prowl all the corridors of government. Hundreds are ex-White House aides or former members of Congress, like Bob Livingston, who left the House after 22 years.

BOB LIVINGSTON, PRESIDENT, THE LIVINGSTON GROUP: It's an adjustment from going from grovelee to groveler.

FRANKEN: The adjustment is made tolerable by the $10 million plus his Livingston Group billed last year lobbying for about 80 clients who felt that his connections were worth big money.

LIVINGSTON: You wouldn't go to an ignoramus. One, presumably, would want to hire an expert.

FRANKEN: In addition to expertise, lobbyists provide campaign money in many different forms, including fundraising dinners. There's also the special treatment -- travel for government officials on corporate jets at cut rate prices, choice seats at sports events, cushy junkets like golf trips to St. Andrews, Scotland, arranged, on occasion, by the now disgraced Jack Abramoff and his associates, gifts that House Republicans now want to make illegal.

LIVINGSTON: Abramoff was an aberration. He did some very terrible things. But he's going to go to prison because he was caught.

FRANKEN: Among the clients Abramoff has represented is Time Warner, parent company of CNN.

Livingston says he has no special seats to offer, does not arrange fancy trips, does not provide corporate jets.

However, he and his clients do make campaign contributions.

LIVINGSTON: The money doesn't go to buy a candidate. The money doesn't go to buy a congressman.

FRANKEN: What it can buy, say watchdog groups, is access without accountability.

ROBERTA BASKIN, CENTER FOR PUBLIC INTEGRITY: There is nothing wrong with lobbying. But it is -- it's become like the fourth branch of government and the public doesn't get to see very much of what's going on.

LIVINGSTON: "Lobbyist" is not a curse word.

FRANKEN (on camera): Bob Franken, CNN, Washington.

(END VIDEO TAPE)

KAGAN: Thanks to Bob and Ed Henry on Capitol Hill.

Now on to Iraq. A deadline and a death threat against a kidnapped American journalist.

The Arab language TV network Al-Jazeera has aired the first videotape of Jill Carroll since her abduction. The network says that Carroll's kidnappers threatened to kill her unless the U.S. releases all female Iraqi prisoners within 72 hours.

Our Michael Holmes joins us live from Baghdad with the latest on that.

Michael, hello.

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Hi to you, Daryn.

Yes, that Jill Carroll video shown on Al-Jazeera, it was short. There was no audio, although we could see her speaking during that video.

The claim, as you said, that all women prisoners held by the U.S. should be released within 72 hours. It's getting on to 24 hours now since that threat was made.

Now, what we're told by the U.S., actually, U.S. military sources, they only hold eight female prisoners. According to the Iraqi justice department, or a spokesman there, he told us that six of those prisoners were due for release anyway in the days ahead. Unrelated to this kidnapping, we must emphasize.

The group claiming responsibility, the Brigade of Revenge. We've never heard of them before. Let's remember that Jill Carroll was taken January 7 in a very risky part of Baghdad, a highly organized attack that left her 32-year-old translator dead.

Now, in other news, I have to report it's been a bloody day in Baghdad and around the country. Seven Iraqi bodyguards killed, three drivers, when a convoy was ambushed in western Baghdad by 15 gunmen. At least one engineer, we think two, from African were kidnapped apparently. This happened in broad daylight, a very daring attack.

Also, a variety of other incidents, Daryn. Three men killed inside their apartment. All of them believed to be relatives of the defense minister.

Four killed, three of them policemen in Diyala province, when an IED hit their patrol. That, again, in the morning hours. And meanwhile, the U.S. military says its troops have come across 11 bodies of policemen and soldiers found in Apamiya (ph). That's north of Baghdad.

So the violence continues -- Daryn.

KAGAN: Michael Holmes live from Baghdad.

Michael, thank you.

Negotiators are trying to win the release of four oil workers, including an American, that were kidnapped nearly a week ago off the coast of Nigeria. We're told that militants are holding Patrick Landry, along with three members of his crew, a Brit, a Bulgarian and a Honduran. Landry is a vessel captain for Shell Oil contractor Tidewater. The kidnappers have vowed to stop all oil exports from Nigeria.

The new president of the European Union is adding his voice to the growing list of international leaders calling on Iran to step back from its nuclear development plans. Chancellor Wolfgang Schlussel of Austria says Iran must return to negotiations.

That issue is on the front burner today for Secretary of State Condoleezza Rice. Right now she's at Georgetown University to deliver an address on how the U.S. should guide world events.

Earlier at the State Department, Rice held talks with Javier Solana, the European Union's foreign policy chief.

(BEGIN VIDEO CLIP)

CONDOLEEZZA RICE, SECRETARY OF STATE: Iran must not be allowed to get a nuclear weapon, it must not be allowed to pursue activities that might lead to a nuclear weapon. And on that we are fully united.

(END VIDEO CLIP)

KAGAN: Iran resumed its enrichment of uranium last week. It claims its program is strictly for energy purposes.

A look now at some key facts about Iran.

The Islamic nation is a theocracy. It is run by ayatollahs. To the east and west, new American-supported democracies in Iraq and Afghanistan.

It has a population of 68 million. Like Iraq, most are Shiite Muslims.

Iranians are young, with a median age of 24. Now, compare that to us here in America. The median age is 36.

Almost three-quarters of Iranians are too young to remember the 1979 Islamic Revolution. Iran exports 2.5 million barrels of oil a day. It's the world's fourth largest producer, but did you know the U.S. produces more oil than that?

A teenage girl is caught in a nightmare. Coming up, what happened when she called 911 from this car as she was trapped under water?

Also ahead, if you have kids who drive, you're going to want to hear about new program to keep them safe behind the wheel and in the passenger seat.

Plus, a mea culpa from Mayor Ray Nagin. The New Orleans mayor says what he really meant about the comment about god being angry with America.

(COMMERCIAL BREAK)

KAGAN: Big sell-off today to tell you about at the Tokyo Stock Exchange. The selling spree was so big, the market actually closed down 20 minutes early so the computers wouldn't crash. The panic was sparked by fraud allegations against one of Japan's maverick Internet firms.

And it was a bizarre end to the trading day. It was enough to spook investors in Europe as well. So, has it affected Wall Street?

Let's find out from Susan Lisovicz.

(STOCK MARKET REPORT)

KAGAN: Once again, we're taking a look at a live picture from Georgetown University, Washington, D.C. That's Secretary of State Condoleezza Rice as she speaks. Her topic today, how the U.S. needs to guide policy and safety around the world.

So, when you had your driver's license, did your parents ever use that line, "It's not you I'm worried about. It's the other drivers on the road?" Well, teaching teen about driving just got a lot cooler. How about learning with an Indy racecar driver? He has some road skills to share.

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KAGAN: Let's get to our legal news then take a look at "Legal Briefs" for today.

Michael Fortier, who was a side player in the 1995 for the yes, a side player in the 1995 Oklahoma City bombing, is expected to go free today. The Federal Bureau of Prisons has told victims' families of his release. Fortier testified of against Timothy McVeigh and Terry Nichols. He admitted that he knew about the bomb plot but that he never warned anybody.

An Ohio couple is in court today trying to get their 11 children home. Michael and Sharon Gravelle (ph) lost custody after being accuses of keeping the kids in cages. The children have health and behavior problems. The parents say they confined the children so they couldn't hurt themselves or each other. The couple has not been charged with a crime.

And in New Orleans, the man seen in that videotaped police beating will be in court today. Robert Davis is charged with public drunkenness and resisting arrest.

His videotaped arrest prompted national outrage. Three officers are charged with criminal battery. The city has fired two of those officers and suspended the third.

Speaking of New Orleans, the mayor, Ray Nagin, says he should have chosen his words more carefully. Nagin now has apologized for his comments during a Martin Luther King Day speech. He certainly stirred debate when he declared that New Orleans should be rebuilt as "chocolate city."

Nagin said god would want it that way. Now he tells our Susan Roesgen that he regrets that comment.

(BEGIN VIDEO CLIP)

MAYOR RAY NAGIN, NEW ORLEANS: If I could take anything back, that's what I would take, any references to god. I think that was inappropriate for that particular setting. It was something that I had discussed with a minister several weeks before, and for some reason, it became top of mind and it became part of that speech. It was totally inappropriate.

SUSAN ROESGEN, CNN GULF COAST CORRESPONDENT: Inappropriate, but do you believe it, that this should be a majority African-American city?

NAGIN: Well, I just look at the data. And the data tells me that from every perspective, that the city will come back and it will be, you know, a very diverse city, similar to what we had before.

(END VIDEO CLIP)

KAGAN: Nagin says that that chocolate reference was a bad analogy and that he really didn't mean to offend anyone.

The city of New Orleans has agreed to notify homeowners whose property is targeted for demolition before the homes are bulldozed. The agreement settles a lawsuit filed by residents of the Lower Ninth Ward. That area was devastated by flooding from Hurricane Katrina.

Under the terms, property owners will get at least seven days' notices. Right now the city has plans to tear down about 120 homes.

A major ruling from the highest court in the country this morning and the opinion written by a justice who is about to retire. A look at the career of Sandra Day O'Connor as her days on the Supreme Court come to a close.

(COMMERCIAL BREAK)

KAGAN: Hawaii icon Don Ho. Who knew a crooner could be on the forefront of stem cell research? Well, Ho is back home in Honolulu after experimental injections in Thailand.

Doctors shot stem cells right into his weak heart, hoping to grow new stronger muscle cells. Ho says he feels 100 percent better and plans to be belting "Tiny Bubbles" on the stage as early as this Sunday.

I think I see Jacqui Jeras doing a little hula.

(WEATHER REPORT)

KAGAN: Coming up, a lot of teenagers look forward to their 16th birthday for the very big reason, driving privileges. So how safe are your kids and their friends? And what can you do to make them safer?

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