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A Mardi Gras To Remember; Storm Over Ports; American Hostage; Long Beach Airport Security Breach

Aired February 27, 2006 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

MILES O'BRIEN, CNN ANCHOR: Till 1:00 p.m. Eastern, noon local time. We hope you'll join Soledad and me for that.
And that's about it from Slidell, Louisiana. I want to thank once again the McClaney (ph) family, Michelle McClaney, great job on the coffee. Kept us warm out here in Slidell.

And, Soledad, look forward to being in New Orleans with you tomorrow.

SOLEDAD O'BRIEN, CNN ANCHOR: Yep, we'll see you tomorrow. We'll wrap up fat Tuesday.

Let's get right to Betty Nguyen. She's at the CNN Center for us. She's going to take you through the next couple of hours.

Hey, Betty. Good morning.

BETTY NGUYEN, CNN ANCHOR: Good morning. Where it's a lot warmer than you are. Great job out there. We'll be watching tomorrow as well. See you then.

Here's what's happening right "Now in the News" for you.

This just in to CNN. There is new hope for Jill Carroll. Kidnaped in Iraq more than seven weeks ago, an Iraqi official says he believes the American journalist is likely alive and thinks she will be released. The official says he knows who abducted Carroll but not sure where she is right now.

Saudi officials say security forces shot and killed five suspected militants today. A two-hour gun battle took place near Riad (ph). A sixth suspected militant was arrested in a separate incident. Now officials believe the suspects are linked to Friday's thwarted suicide attack on a major oil processing facility.

Gas prices, they have dropped an average six cents a gallon nationwide over the last two weeks. That figure's from the Lundberg survey. But the survey says the trend is unlikely to continue for a number of reasons. They include higher crude oil prices at the end of last week and increased costs for how fuel is blended.

And how far will that gallon of gas take you? Well, a different number of miles, even among similar size vehicles and hybrids. That's according to the Consumer Federation of America. The group is holding a news conference right now to release a new fuel economy report. You want to stay with CNN for those results.

Ah, the sounds of Mardi Gras. Good morning, everybody. I'm Betty Nguyen at the CNN Center in Atlanta, in today for Daryn Kagan.

Got a lot to tell you about, including Mardi Gras to remember. A half year of misery to forget, no doubt. New Orleans lushly welcomes the return of its trademark decadence nearly six months after Hurricane Katrina ravaged the city and much of the region for that matter. Will these haunting memories of such loss and tragedy tone down the celebration? Well, CNN's Sean Callebs is in New Orleans for the Mardi Gras revelry and our Kathleen Koch is in a city no less devastated but far less in the public eye.

I want to begin now with Sean.

Sean, you rode in the parades last night. Did you get swept up in all the emotions of this particular Mardi Gras?

SEAN CALLEBS, CNN CORRESPONDENT: Really we did. There were a few delays that were holding the Endymion parade up just a bit. But once it did get going, it was really amazing. In fact, a lot of members on the float kind of warned me, you know, don't look for anything spectacular, the crowds are thinner this year. But when we turned and came down St. Charles, it was packed about 20 feet deep on both sides. People screaming their lungs out for these beads. It was actually kind of entertaining.

Of course, a lot made should they or shouldn't they have Mardi Gras this year. There were 2,200 people on the Endymion float and 10 percent of those people, more than 200 people, lost everything. To a person, everyone we had talked to last night said they were thrilled that this city was able to enjoy Mardi Gras, to get the city a chance to smile, a chance to laugh again after looking at nothing but debris fields and devastation for the past six months.

Last night the sounds and the sights just echoing off the streets. Well today, a little more sobering. The smell is kind of wafting up from Bourbon Street. The trash still out there. We're told by people that lived here for a long time that usually cleanup crews come in right after the big krewes that role through. But it didn't happen today, Betty. So hopefully this will be picked up because there's a lot of parades today and people aren't going to want to wade through this to joy it.

Betty.

NGUYEN: Well, hey, it's Mardi Gras and that's what happens.

But I want to ask you about last night because I understood that you even saw people holding signs up that said, we need this. Are they healing with this Mardi Gras?

CALLEBS: Yes, it was amazing. They were holding signs up saying "thank you rolling, "thank you for being here." A lot of signs also taking some shots at the city and state government, as well as FEMA. But I learned a great deal last night. I want to show you just a bit here. There's a certain art to throwing these things. They come in strands of a dozen.

NGUYEN: Right.

CALLEBS: You hold it, you grab it in your backhand and throw it down that way.

NGUYEN: Oh, pretty good arm. You got some practice, didn't you, last night?

CALLEBS: I got that (INAUDIBLE). You got that right. I must have thrown I think it was 73 tons of beads. It didn't weigh it exactly but it was quite a bit. Quite a bit.

NGUYEN: Getting a workout down there.

CALLEBS: There's $100,000 in beads alone on the one float that we were riding. That gives you an idea of how much money these folks sink into this. And it's all for fun. But the people on the float really want to entertain all the people gathered out on the street. And really saw that happen to a large degree last night. The parade lasted hours. It was really a lot of fun.

NGUYEN: Good to see the smiles. And, hey, Sean, you know, we haven't been forgotten. We have a few of these beads here at CNN. These are ones that you may want to keep your hands on. They could come in handy down there on Bourbon Street. You never know. Beads go for a lot down there.

CALLEBS: You know what, if I never see another strand of beads after last night, I'm content.

NGUYEN: Oh, it wasn't that bad. All right, Sean Callebs, we'll talk to you.

CALLEBS: That was a lot.

NGUYEN: Yes.

Well, Mardi Gras is not just celebrated in New Orleans, but in many cities throughout the region. And this year those plans and a cherished memories of previous Mardi Gras celebrations were cast to the cruel wins of Katrina. CNN's Kathleen Koch is in the ruin coastal community of Waveland, Mississippi.

Kathleen, despite the devastation, no doubt Mardi Gras celebrations must roll on.

KATHLEEN KOCH, CNN CORRESPONDENT: They do roll on. But I want to point out something that's very interesting as you walk through these destroyed towns on the Mississippi Gulf Coast. When you go through the rubble of the debris, you find it laced with Mardi Gras beads. A very eerie, very macab (ph) sight. They dangle from trees, sometimes 20 feet up in the air. They're wrapped around piles of bricks and twisted around fences and sometimes you see them just laid out on the ground as if a parade and not a hurricane has just gone by.

And sadly, though, the revelers who once threw those beads came back after the hurricane and they found that their Mardi Gras floats, their beautiful floats they worked so hard on, were in ruins, too. And it's really meant the bringing Mardi Gras back here has been an enormous challenge.

Now with me right now is Cindy Meyer, who is the den lieutenant of the Krewe of Nereid. It's an all female krewe in Waveland.

But, Cindy, you don't have a den to be lieutenant of any more. It's gone.

CINDY MEYER, WAVELAND NEREIDS KREWE: Well, we have floats. As long as we have floats, we have a den and we have an order.

KOCH: But there used to be a huge warehouse, right, protecting these?

MEYER: Right. Yes. And we complained about it but now there's nothing left to complain about.

KOCH: Now you got these floats back from -- they were virtually destroyed. They're looking pretty good now. But tell me what you had to go through.

MEYER: Well, we had to put them all back together. A lot of them were mashed. Just crushed.

KOCH: Because this area was 10 feet under water, correct?

MEYER: Right. The den collapsed on top of it, which probably saved them because they sat out here for months, weeks, with no protection at all. And then we started scraping the old paint off, which was a job within itself.

KOCH: And you had your parade last weekend and you told me it was very special. The best Mardi Gras parade ever.

MEYER: It was. I don't think I'll ever forget this one. Normally people run up to the float and they bring their kids to the float and they're wanting beads or a special bead, stuffed animals. This year they were thanking us and we were crying and they were crying and it's something that I don't think I'll ever forget. I don't think there will be another one like this. I hope there's not another one like this. But it was special for all of us.

KOCH: Cindy, thank you for sharing your story, the Nereids story, with us.

And their hope now is that they'll be able to come up with some money to rebuild the giant warehouse that used to protect these floats because otherwise the months and months of work that these brave women went through to bring these floats back to their original beauty, that will be all wasted. They'll be ruined by being exposed to the elements. Betty.

NGUYEN: Kathleen, this has to be very personal for you to come back home and to see all the devastation. But I want to ask you, on a personal note, what does this Mardi Gras mean to you? Because you've been out there. You've seen the people. You've seen the smiles. You've seen the children and the crowd. What does it mean to you?

KOCH: Betty, I think it's just a chance to give people something other than the destruction, the rubble, the cleanup to think about. It's a chance to raise their spirits. In Mississippi, they really haven't been debating whether or not this should go forward. The Mardi Gras events here are very small. A Mardi Gras krewe in New Orleans may have 2,000 people on it. This Mardi Gras krewe has 120 women involved. And so it's not like celebrating Mardi Gras takes any money away from the cleanup, any money away from the recovery. It just really lifts people's spirits.

NGUYEN: And that's what they need.

KOCH: That's right.

NGUYEN: Kathleen Koch in Waveland, Mississippi. Thank you, Kathleen.

Well, Hurricane Katrina's unprecedented scope of destruction also drew a record outpouring of charity. Private and nonprofit groups collected some $3.25 billion. But according to an analysis from "The Washington Post," more than two-thirds of that money has already been spent. "The Post" says the money will help evacuees and victims with immediate needs like housing, food, medical care and other urgent matters. Less than a billion dollars remains for long-term needs. And the money may need to be dolled out over many years. Those projects include such things as job training, mental health counseling and rebuilding the homes of the poor.

So you want to stay with CNN LIVE TODAY for continuing coverage from the Gulf Coast. At the bottom of the hour, we're going to take a look at the life blood of New Orleans. How the city can regain it's former glory as a tourism mecca. Can it? That's one of the big questions right now.

Also, the past meets the future at the water's edge. Crews are still scrambling to reinforce the levees. The goal for this summer's hurricane season may not provide a lot of comfort.

And time may heal all wounds, but Katrina scares are still painfully obvious along the coast. Our Gary Tuchman returns to one besieged city.

And CNN's Anderson Cooper is in New Orleans tonight beginning at 10:00 p.m. Eastern. You want to watch for that. He's going bring live coverage from the heart of Mardi Gras right here on CNN.

Talking about the weather now as people are preparing for the celebrations out there. Got some rain over the weekend. That really wasn't what they wanted to see, but it seems like things are clearing up a little bit, Jacqui.

(WEATHER REPORT)

NGUYEN: This information just in to CNN dealing with the Long Beach Airport there in Southern California. Want to look at some pictures that we're getting in from our affiliate KTTV. You see lots of people standing outside.

Well here's what we know about why they're doing that. A ticketed passenger was going through screening and then acting suspiciously according to sources and he made a request for a private screening and then what we understand, according to the information that's coming in to CNN, is that this person took off running and they're still looking for this man.

No planes, though, are boarding at this time. And all departing flights have been delayed, which is why you see people standing outside. A lot of them wondering exactly what's going on, what's the delay. And some flights are still trying to get into the airport. That's going to be a big problem because you've got some in the air trying to land.

But there are no planes that are boarding and none parting at this time and a line of passengers, as you can see from that live shot just moments ago, just standing outside as they're waiting for what is being call a security breach because, once again, a ticketed passenger was going through a screening area and then they deemed that he was acting suspiciously. Then he took off. So they're still looking for this man at this time.

Again, this is happening at the Long Beach Airport in Southern California. We're going to stay on top of this and bring you the latest as soon as we know anything else about what's going on there.

In other news. Capitol Hill Democrats not letting the domestic spy case die down. Nope. Their new move, to try to keep the White House in check. We're going to talk about that ahead.

Also a delay in the deal to turn six major U.S. ports over to the United Arab Emirates. But will the delay change the plans to sell? We're live from the White House.

And Saddam Hussein and news about that hunger strike that he's been on for nearly two weeks now. We're going to go live from Baghdad on that and the latest on the civil unrest in Iraq.

Lots to tell you about when CNN LIVE TODAY returns.

(COMMERCIAL BREAK)

NGUYEN: We want to take you back now live to California where we are getting a look at the airport there. The Long Beach Airport where we understand a security situation is underway because what we know from airport officials is that a ticketed passenger was going through screening and then acting suspiciously. Now this man made a request for a private screening and then took off and police are still looking for this man around the airport right now.

You can see one of the patrol cars right there sitting and waiting. A lot of people are on watch, including passengers, because they're trying to get on their planes. And as of now, no planes are boarding at this time. All departing flights have been delayed as well. So the search is on for this unidentified man who took off running after going through one of the screenings there.

We'll stay on top of this and bring you the latest when we get more information on it.

Well in "CNN Security Watch" today, President Bush is facing new questions and new pressure surrounding his domestic eavesdropping program. A group of House Democrats have sent a letter to the president asking for a special counsel to investigate the legality of the program. Now the letter says lawmakers have been given "the feeblest of excuses" while seeing information from federal agencies. There's been no immediate response from the White House to the Democrat's letter. The Bush administration has said that the president had the power to order the surveillance. White House officials argue Congress authorized that power back in 2001.

Now the White House has been defending itself against critics from both parties in Congress on another issue. The deal for an Arab company to take over six U.S. ports. But now the deal has been delayed with a security review under way. CNN's Bob Franken has details on that and reaction from the White House.

What kind of reaction are you hearing, Bob?

BOB FRANKEN, CNN CORRESPONDENT: Well, I suppose we could best characterize it as a sigh of relief for the middle ground, according to the White House Press Secretary Scott McClellan, that was reached with the help of the congressional Republicans, specifically the Senate Majority Leader Bill Frist, and the company.

What happened was, is the White House found itself embroiled in this controversy over approval of the take over of the ports by this Dubai-based group, DPW, Dubai Ports World. Then, of course, we had the political firestorm last week involving both Democrat and Republican critics. The company initiated the request for a 45-day review that Congress was demanding, which meant that the White House did not have to acquiesced to Congress.

What it also means is that the controversy cools down for a while. Controversies in this town have a habit of flashing up and then disappearing. For the White House, it could be a face saving move. It could mean that by the time this 45-day review is over, people will be on to something else and this issue will have gone away and the White House will get what it deserves.

The White House says that it is not even going to talk about what will happen if it's an adverse review or if Congress persists in asking for an investigation. The president said he would veto that. Meanwhile, the Democrats have said that this investigation and this deal is a little bit too little too late but there's little that's going to be done about it now. So watch this controversy be taken over by some other controversy.

Betty.

NGUYEN: Oh, you know we'll be watching. Bob Franken, thank you.

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

In Iraq today, there may be new hope over the fate of an American hostage. A top Iraqi official says he believes journalist Jill Carroll is alive and that she will be released. CNN's Aneesh Raman has the latest on this story from Baghdad.

Aneesh, what do you know?

ANEESH RAMAN, CNN CORRESPONDENT: Betty, good morning.

Welcome words coming from Iraq's interior minister. He has reportedly told the U.S. ambassador to Iraq, Zalmay Khalilzad, that he has evidence Jill Carroll is alive and ultimately believes she will be released. Now these words come a day after the latest deadline that was set by those holding Jill Carroll. That was yesterday. And until the statements by the interior minister, there was really no information as to her whereabouts or her fate which was, of course, brought into light given all the tensions that we've seen here.

The third time that we saw Jill Carroll, it was immediately after that tape that the group holding her got in touch with the Kuwaiti- based network Alri (ph) and issued this latest deadline of February 26. Their demands have always been the release of all female Iraqi prisoners. But there has been really unprecedented support on the ground here and throughout the world in calls for Jill Carroll's release. And now these welcome words again from the interior minister that he say he believes Jill Carroll is alive and ultimately will be released.

Betty.

NGUYEN: Aneesh, talk to us about the violence there because curfews have come and gone and we understand that a high school saw a mortar attack. What happened there?

RAMAN: Yes, shortly after the curfews were lifted, a 34-hour curfew in the capital, a mortar attack in a Shia neighborhood. Two of the mortars hit a gas station, another hit a girl's high school. At least four people were killed in that attack. Some 17 others wounded.

But that attack aside, it has been relatively calm in the capital. This, of course, as the country still is reeling from Wednesday's attack on that sacred Shia mosque. Political leaders trying to restart talks on a unity government.

But in the Baghdad suburbs, there's evidence that sectarian tensions remain incredibly high. Reports of Shia militia going in and pushing Sunni families out of their homes and also Sunni armed men going into Shia neighborhoods and forcing them to leave their homes as well.

Betty.

NGUYEN: Aneesh, we know that Saddam's trial resumes tomorrow. I understand he's had a change of heart when it comes to this hunger strike.

RAMAN: Yes, two important developments. First, Saddam Hussein ending what is by count an 11 day hunger strike. He announced it at the last session. His defense team has been in to meet him. They say they convinced him to end the hunger strike for health reasons. We'll see if it's notable that he was on a hunger strike tomorrow in court.

Also, Saddam's defense team, who had boycotted or been barred, depending on who you talk to, from the court session, they are set to reappear in court tomorrow. The court essentially reversing its original decision to keep them out.

So also we're told by his defense lawyers, they've made Saddam and the other defendants aware of what has happened in Iraq in the past week. That will likely play into the drama that will likely ensue again tomorrow.

Betty.

NGUYEN: Oh you know there's going to be drama, plenty of it. Aneesh Raman, thank you. We'll be watching.

By now you may have paid all of those Christmas bills. Now it's tax time. Our Gerri Willis thinks it's a good time, though, to do some financial housecleaning.

This is hard for me, Gerri.

GERRI WILLIS, CNN CORRESPONDENT: Well, we're going to make it easy.

NGUYEN: OK.

WILLIS: Spring is around the corner. It's time to clear out those financial cobwebs. Stay with us. "Five Tips" is next.

(COMMERCIAL BREAK)

NGUYEN: Want to take a look at the numbers on Wall Street for you this morning, Monday. The Dow is up 40 points and I understand the Nasdaq is also up, positive ten. Both in positive territory. Always good news on Monday.

All right, this just in to CNN. We are learning more about what's happening at the Long Beach Airport there in California. On the phone we have with us Sharon Diggs-Jackson. She is with the airport.

Tell us about the security breach that you guys are investigating right now. SHARON DIGGS-JACKSON, LONG BEACH AIRPORT: At 6:15 this morning we had a male individual who was acting suspicious. He was going through security screening. They were going to do a secondary screening on him. He requested it to happen in a private area which, you know, often happens. And prior to him moving to that area, the suspect left. So our airport security personnel have been trying to locate the individual. We've had to suspend our departure activity and currently our boarding lounge is secure. The terminal's still open, but the boarding lounge is a secured area.

NGUYEN: All right, let's back up just a second if you would, please, Sharon. You said he left. What do you mean? Did he take off running? What happened?

DIGGS-JACKSON: Yes, he actually took off running. And so then security personnel tried to apprehend him. The gentlemen went into another area and then that's when they decided to shut down the boarding lounge so we could isolate the passengers and they've been conducting a search for him.

NGUYEN: OK, so he went off running in a particular area. Have you sealed off certain sections of the airport to try to find him?

DIGGS-JACKSON: Yes, we actually sealed off the boarding lounges in an effort to locate the individual. He is a ticketed passenger, so we do have some information in that regard. So we're trying to locate that gentlemen.

NGUYEN: All right. And as for the departure flights, I know you started talking about that. Tell us about the status of people trying to get on their planes. Because we're looking at video right now of long lines outside the airport.

DIGGS-JACKSON: Well, our flight activity actually starts at 7:00 a.m. So these were the first flights. Those passengers who had already gone on to security and were on the planes, they are being held on the aircraft. Those who are in the boarding lounge are being held in the boarding lounge. The terminal itself is still open, so passengers are being able to be processed in the terminal, they just can't move into the boarding lounge.

NGUYEN: Gotcha. Sharon Diggs-Jackson with the Long Beach Airport. Thanks for that update on the information that's happening there. As you understand, a security breach has occurred and they're trying to find the man who took off running. But as you know, departure flights have stopped. As of now, people are not boring. We'll stay on top of this story.

In other news, Russia's foreign minister is calling on Iran to not pursue its own enrichment of uranium. That announcement comes just a day after the two nation's agreed on a joint venture for enrichment. The developments are seen as a possible breakthrough in the international stalemate. Though many nations, including the U.S., have publicly questioned Tehran's vow that it is not pursuing nuclear weapons. In the Philippines, President Gloria Arroyo clamping down on her critics. At least 16 people charged with plotting to overthrow her government. It comes three days after President Arroyo declared a state of emergency, saying that political opponents, members of the military and civilian activists conspired to launch a coup.

And in Southern California, crews put out a fire that swept through several docked boats this morning. Look at the video. At least five vessels were fully engulfed and several more damages in San Diego Bay. The cause of the fire, well that's still under investigation but no injuries are reported.

Want to get to those top five tips to help you straighten out your finances. That's coming up right after this break.

Also, the floats are rolling and the bands are playing in New Orleans. Mardi Gras is drawing tourists back to the big easy. But will visitors keep showing up? We're going to tell you what tourist officials plan to do to keep the crowds coming back.

(COMMERCIAL BREAK)

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