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Middle East Democracy; Hamas Election Shocker; Filibuster Threatened For Alito; Tunnel Under U.S./Mexico Boarder Found; Tense Demonstration In Gaza City

Aired January 27, 2006 - 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: New York City.
SOLEDAD O'BRIEN, CNN ANCHOR: And you. Thanks.

KAGAN: Thank you so much.

We have a lot to get to in the next couple hours. Let's go ahead and do that and take a look at what's happening right "Now in the News."

The Senate plans to vote on Supreme Court Nominee Samuel Alito early Tuesday despite rumblings of a possible filibuster by some democrats. John Kerry and Ted Kennedy are trying to drum up support to block the nomination. Republican leaders are unconcerned. They already have 55 votes in support of President Bush's nominee. The White House has fired back, by the way, at Kerry's filibuster threat issued while the senator was in Europe. Just minutes ago, White House spokesman Scott McClelland said "I think it was a historic day yesterday. It was the first ever call for a filibuster from the slopes of Davos, Switzerland."

Back here in the states, in Indiana, a condemned killer awaited his lethal injection with these words, "let's get it over with." Marvin Bieghler was executed for the 1981 killings of a man and his pregnant teenage wife. The 58-year-old had lost a series of legal challenges right up to his execution.

U.S. researches say they have created a vaccine that has completely protected chickens from the deadly bird flu virus H5N1. And they say new technology required only a month to make it. The team at the University of Pittsburgh now wants to test the vaccine on humans.

Well, it is Friday, everybody. Good morning to you. I'm Daryn Kagan at CNN Center in Atlanta.

We're going to start with the movement to the Middle East and democracy. A key administration move for the Bush administration. The president meets next hour with Lebanese Politician Saad Hariri. He is the son of the assassinated former prime minister of Lebanon. Today's meeting comes as the White House deals with an unexpected result of democracy in the Mid East. Our White House Correspondent Elaine Quijano picks up the story.

Elaine, good morning. ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you, Daryn.

And that unexpected result was the rise to political power of Hamas, a group that the United States has labeled a terrorist organization. That development, of course, happening just this week during the Palestinian parliamentary elections.

Now, the White House is making clear that Hamas, which has pledged the destruction of Israel, must renounced violence before the United States will deal with that group. The president, though, being quite carefully in how he discusses the development. At the same time, issuing that warning to Hamas, also taking time to praise the democratic process itself.

But the United States, Daryn, certainly facing a diplomatic dilemma as it tries to determine how best to proceed in dealing with a democratically elected government that is being led, in large part, by Hamas.

Daryn.

KAGAN: Elaine, what about some new polls that are out about the White House?

QUIJANO: Well, it's an interesting time to take a look at this. Because, of course, the State of the Union Address is just a few days away taking place on Tuesday. But a new CNN/"USA Today"/Gallup Poll shows that in his second term, Americans are giving the president low marks when it comes to whether or not they feel the president's second term has been a success or a failure so far.

Since the start of 2005, is how the question is phrased, when the president began his second term, would you say his second term has been a success or failure. Thirty-eight percent said success, 58 percent said failure.

Now, look at another number, another indication of the challenges facing the president. Does the president have a clear plan for solving the country's problems. Only 34 percent said yes. Sixty-four percent said no.

And on the State of the Union Address, President Bush preparing for that. He'll be doing that this weekend. This afternoon, as well, taking part in what the White House calls an editing session. And topics that we're likely to hear are some of the same topics we heard him preview yesterday, Daryn, during the news conference, the war on terrorism, the economy, health care. But there certainly is an understanding here at the White House that a lot of these numbers, not just these particular numbers, but other numbers, are the result of Americans not necessarily feeling good about the general direction of the country. President Bush, in his State of the Union Address, will try to layout what he sees as solutions to some of these problems and the way forward in 2006.

Daryn. KAGAN: And, Elaine, on those poll numbers, I don't know if the White House has had a chance to comment on those, but they tend to say that they don't run the White House looking at poll numbers.

QUIJANO: Well, that's exactly right. What they say is certainly they're aware of them. They lock at them. But they don't govern by them. And that's a distinction that the White House, that the president himself has made many times.

Daryn.

KAGAN: Elaine Quijano at the White House. Thank you, Elaine.

Well, Palestinians and the world may still be in shock from Hamas' landslide victory at the polls. But as Hamas turns to forming a government, there are questions about how prepared the party is for its powerful new roll. Hamas supporters celebrated the party's landslide win in the Palestinian parliament with a mass rally today. Our John Vause has more from the West Bank city of Ramallah.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT: This sweeping victory by Hamas is being described as a political earthquake. Already those aftershocks being felt in Gaza. In the city of Conunit (ph), a shoot-out between angry Fatah supporters who denounce the election results at Friday prayers and Hamas gunmen. Three people wounded there. In Gaza City last night, Fatah gunmen marching through the streets, firing in the air and calling on the Palestinian authority President Mahmoud Abbas to resign, blaming him for Fatah's disastrous showing at the polls. Also calling him a traitor for allowing Hamas to run in these elections in the first place. For his part, Mahmoud Abbas says, despite Hamas' huge win in these electrics and their commitment to the destruction of Israel, he is still hoping to renew peace negotiations with the Israelis.

MAHMOUD ABBAS, PALESTINIAN AUTHORITY PRESIDENT: I'm also equally committed to implement the program on which you elected me a year ago, so that the whole world understand that it is a program that is based on negotiations and a peaceful settlement, solution to the conflict with Israel.

VAUSE: Israeli officials say they will not negotiate with terrorists, but, nonetheless, they'll be closely watching this new Hamas government in the days and weeks ahead.

UNIDENTIFIED MALE: We're not jumping to conclusions. We're leaving the door open and allowing the Palestinians to absorb, I'd say, the full consequences of their decision.

VAUSE: Hamas officials now say they want to meet with the Palestinian authority president in the next few days to form a political partnership. But that will be an uneasy partnership at best.

John Vause, CNN, Ramallah in the West Bank. (END VIDEOTAPE)

KAGAN: And now on to Iraq where there still is no word on the fate of American hostage Jill Carroll. The journalist was kidnaped in Baghdad three weeks ago. Her abductors have said they would kill her unless Iraqi female prisoners were freed. Five of those nine prisoners were released yesterday. U.S. and Iraqi officials say that release was not a response to the hostage takers' demands.

And now, for you, the first picture of two German engineers since they were taken hostage in Iraq. Arabic television network al-Jazeera broadcast the video today. On the tape, the men asked the German government to intervene for their release. Gunmen dressed like Iraqi troops abducted the engineers while they were on their way to work on Tuesday. The kidnappers made no demands on the tape. German officials say they're doing all they can to secure the hostages safe return.

Well, back here in the state. If Senate Republicans get their way, Judge Samuel Alito could be confirmed to the Supreme Court next Tuesday. But diehard Democrats, including John Kerry, are threatening a filibuster. The White House now commenting on those threats. And with more on that, let's go to Ed Henry.

Ed.

ED HENRY, CNN CORRESPONDENT: Good morning, Daryn.

That's right, as you note a few moments ago, the White House having a field day with this story. Spokesman Scott McClelland a short while ago telling White House reporters that history was made here in the Senate yesterday. He said that, of course, with his tongue in cheek. "It was the first ever call for a filibuster from the slopes of Davos, Switzerland." That, of course, is where John Kerry was attending the World Economic Forum.

I've spoken to the senator's staff this morning. They assure me he was not skiing. He was attending to international issues and problems and is now headed back to Washington, D.C., here to Capitol Hill to get to work on this filibuster. Kerry's staff also noting there were Republican senators like John McCain at that conference.

But there's the practical matter also beyond the politics. The principles at stake here. The practical matter of does John Kerry actually have the votes. And I can tell you, very senior Democrats here on The Hill say the White House is correct. They have at least the 60 votes they need to break off a filibuster. Kerry staff would say they're still working, though, to try to change some of those Democrats who are siding with the White House right now.

This plan was first hatched, in fact, Wednesday here on The Hill. A closed-door meeting of Democratic senators. Kerry and Senator Edward Kennedy urging their colleagues to join this filibuster. They say that Judge Alito is outside the mainstream on issues like abortion and presidential power. There's also the politics here, of course. Kerry allies saying, there's an opportunity here for him to really energize and liberal base of the Democratic Party that's very concerned about the high court shifting far to the right in the wake of Chief Justice John Roberts being confirmed. Now Judge Alito posed to be confirmed as well. But this could also provide some political peril, if you will, for Senator Kerry because middle of the road voters could be turned off by this filibuster.

Daryn.

KAGAN: Ed Henry live on Capitol Hill. Thank you very much.

And this just in. We're looking at live pictures. This is Campbell, California, right next to San Jose. A house fire, which wouldn't usually make national news, but this is a fire engulfing a home across from a high school. It's a two alarm house fire. It's across from Westmont High School. That's right on the city line between San Jose and Campbell. No idea if anybody was home at the time. More on that ahead.

Meanwhile, there are new concerns about who is coming into the U.S. A passport ring bust yields some alarming findings.

Also, we told you about this yesterday, this huge tunnel that was discovered under the U.S.-Mexican border. We're going inside that tunnel.

And the war of words escalating between the U.S. and Cuba on Cuban soil. How Fidel Castro is responding to messages from the American.

And an emotional new film follows the stories of five families in fights for life. We'll talk to some cancer victims who are the real life stars of a documentary called "Lion In The House."

All that ahead and more on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: In today's "Security Watch," disturbing questions arise over fake passports and links to terrorists. Officials in the South American country of Colombia say they have busted a bogus passport ring tied to al Qaeda and Hamas. U.S. officials who helped in the investigation say that a Columbian rebel group is the only terrorist organization involved. Both countries say the ring supplied falsified documents of Colombian citizenship in several middle eastern countries. The bogus passports were then used to enter the U.S. and European countries. Authorities say it's not clear how many fake passports were issued or successfully used.

Still on the topic of border security. U.S. officials are searching for answers in yesterday's discovery of a half-mile between Tijuana and Otay Mesa, California. U.S. officials say the cross border passageway is the largest and most sophisticated they've ever seen. It has concrete walls, floors and ceilings, and may have better utilities than your own basement. It's believed to have been used to funnel drugs into the U.S. As CNN's Chris Lawrence explains, the discovery also has important security implications.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT, (voice over): Federal agents call it massive. The largest, most sophisticated tunnel they've ever found on the southwest border. And it's easy to see why. As long as eight football fields and high enough for a man to walk through. The shaft has lights, ventilation and a water pumping system. Even a gurney that allowed smugglers to move items in and out of the tunnel.

MICHAEL UNCUETA, ICE: It's like being in a mine shaft or a cave.

LAWRENCE: The tunnel starts 60 to 80 feet underground, below a warehouse in Tijuana, and ends a half mile into the United States. Police found more than two tons of marijuana. Most of it on the Mexican side.

JOHN FERNANDES, DEA: We know it's used for drug trafficking, obviously. But more than that, the discovery of these tunnels truly illustrate the dangers, the risk of the security and safety concerns of the American public.

LAWRENCE: Because with a tunnel this sophisticated, officials are concerned about what else may have come through.

UNCUETA: When we find these tunnels, we see that as a vulnerability to our national security. Whether the tunnel was used to smuggle aliens or whether the tunnel was used to smuggle narcotics or, in a worse case scenario, some sort of weapon that would be smuggled in and directed at the United States.

(END VIDEOTAPE)

KAGAN: And that was our Chris Lawrence reporting on that story.

Be sure to stay tuned to CNN day and night for the most reliable news about your security.

Also a good place to get your latest weather information. Bonnie Schneider has that for us.

And you are looking west today. Good morning.

(WEATHER REPORT)

KAGAN: We're going to go from missing at sea to missing in Aruba. CNN has covered the stories. Vacations that have turned tragic. Gerri Willis has some advice on staying safe when taking that overseas trip.

Hey, Ger.

GERRI WILLIS: Hey, Daryn, good to see you.

Traveling overseas can be dangerous. We'll show you how to keep you and your wallet safe. "Five Tips" is next.

(COMMERCIAL BREAK)

KAGAN: Want to get back to our developing story, what's happening in light of the huge Hamas landslide in the Palestinian elections. Apparently things getting a bit tense in Gaza. That's where we find our Ben Wedeman.

Ben.

BEN WEDEMAN, CNN CORRESPONDENT: Well, Daryn, I'm standing in front of the home of Mahmoud Abbas, the Palestinian president, who's not in town but there are about 2,000 Fatah members in front of the house. Many of them armed. Many of them angry, calling for the resignation of the Palestinian president. Describing him as a collaborator -- you can hear some gunfire there. They're just firing in the air.

They are describing Mahmoud Abbas as a collaborator for Israel, blaming him for allowing these elections to happen and allowing Hamas to essentially conduct a revolution, overthrowing 40 years of Fatah rule. So it's very, very tense. Not just here in Gaza City, but we were just about a half an hour ago in one of the southern Palestinian refugee camps where similar protests are taking place there. Very tense indeed.

KAGAN: Ben, you say very tense and about 2,000 people in front of this house. Any kind of police or security trying to calm the situation down?

WEDEMAN: Right. There are uniformed Palestinian police all around the walls, around Mahmoud Abbas' house trying to keep people back. At the moment, one of the -- one of the speakers is on top of a truck is trying to tell people to calm down, to make sure that this doesn't get out of hand. But certainly the mood is fairly ugly.

KAGAN: Is it safe enough for you to stay where you are?

WEDEMAN: Don't worry, I wouldn't be here if it wasn't.

KAGAN: OK. I know you've learned by experience with that situation covering that part of the world. Explain -- give a little bit of context, please, to our viewers in terms of the president belonging to Fatah and Hamas having this landslide victory.

WEDEMAN: Mahmoud Abbas succeeded Yasser Arafat as the president of the Palestinian authority and the head of the Fatah movement, which Arafat founded in the early 1960s. And he's been running -- he was elected as president about just exactly a year ago. But unlike Arafat, he's been unable to control many of the people within the Fatah faction who are behind a lot of the lawlessness that has taken place. And, of course, this takes place against the backdrop of Hamas' victory in the Wednesday Palestinian elections which basically unseat Fatah after 40 years as Fatah domination of the Palestinian national movement. KAGAN: All right. Ben Wedeman live in Gaza. We'll check back with you and hopefully get some pictures in on what sounds like a very tense and developing situation. Thank you.

Right now we focus back here in the states on the market. They've been open almost an hour. Things looking pretty strong for a Friday. The Dow, as you can see, up 77 points. The Nasdaq in positive territory as well. It is up 26.

Not too early to start planning vacations. You want yours to be a safe one. With "Top Five Tips" on how that can happen, let's go ahead and check in with Gerri Willis.

Gerri.

WILLIS: Hey, Daryn, good to see you.

Tip number one here, if you're traveling overseas, and obviously not where Ben Wedeman is, but let's say you're somewhere in a European capital, for example, you want to make sure you use an ATM. People tend to carry -- particularly Americans tend to carry a lot of cash. It's just not a great idea to do that. You're setting yourself up as a target. Carry only $75 to $100. And then it's likely that your local bank will have an agreement with a European bank or wherever you are so that you can use an ATM on the road. Now there typically is some kind of fees involved, but they're not too bad and it keeps you from becoming a victim.

KAGAN: Good choice. Anybody who's been a victim of losing their luggage knows that is a miserable situation.

WILLIS: Yes, losing your luggage is ugly. And, guess what, it's happening more and more often. There are more and more complaints about this. The key is to leave the really expensive stuff at home. Daryn, don't pack the tiara. Make sure . . .

KAGAN: Oh.

WILLIS: Make sure that you keep your -- the goods in your bag to a minimum, really. Because, a, you don't want to lug it around. And, b, the airlines are only going to reimburse you for about $2,800 worth of goods. So keep it at home and don't bring things that you can't afford to lose.

KAGAN: Or maybe I'll just wear the tiara on the plane. Like a carry-on tiara.

WILLIS: Well, carry -- speaking of carry-ons, you probably want to put the meds in the carry on just in case something happens. If you really need that -- whatever that is that you take every day, make sure you put it in your bag so you don't lose it.

KAGAN: And you want to check on your health insurance before you go.

WILLIS: Right. You know, look, your HMO, Medicare, is not going to cover you when you're on the road, particularly internationally. So you're going to have to find other solutions, particularly if you're on one of those adventure vacations where you do things that are kind of wild and a lot of fun. You may want to buy supplemental insurance. You'll pay a little bit more, but just in case anything happens you'll be covered. Remember, being evacuated from an area that is remote can be really expensive. So you may want a little help with that.

KAGAN: When you're in a foreign country, you don't want to stick out as an American. That can make you a target. And the fanny pack can do that very easily.

WILLIS: Yes, the fanny pack is like a big light.

KAGAN: Hello.

WILLIS: You know, rip me off, rip me off, rip me off, right. So you don't want to wear that. Don't do that. But you also want to watch wearing sweatshirts that have the name of American universities or t-shirts that have, you know, American phrases or slang. You know, you want to fit in, because why are you there in the first place? You're there to walk around, have a good time, see the sites, check out the local culture. You want to be part of the crowd, not standing out from the crowd.

KAGAN: When in Rome, as they like to say.

Now if you're overseas and something bad happens, there possibly is American help for you.

WILLIS: Yes, the U.S. embassy or consulate is your first stop if you have a problem. They'll help you out. Even say if you lose your I.D., they can give you some kind of help. Make sure you carry the names and phone numbers of people at home to that you might want to get in touch with if you do have a problem. Stay safe. Leave the tiara at home. I think that's our best advice here, Daryn.

KAGAN: Don't know if I can go for that, but thank you for the advice. You can say you warned me.

WILLIS: OK.

KAGAN: OK. Thank you, Ger.

WILLIS: You're welcome, Daryn.

KAGAN: We are going to get back to this developing story. A very dramatic phone call from Ben Wedeman as he was telling us what's happening in Gaza. A lot of angry people outside the home of the Palestinian President Mahmoud Abbas. And we'll have more on that just ahead.

Also, a top Democrat is threatening to hijack the vote for Supreme Court Nominee Samuel Alito. We'll talk about that story.

Plus, the NSA wiretapping controversy and renewal of The Patriot Act. Our guest, Senate Intelligence Member Saxby Chambliss. He'll be with us in a bit.

(COMMERCIAL BREAK)

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