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CNN Live Today

New York City Tunnel Plot; Midwest Tour; London: One Year Later

Aired July 07, 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: We have a lot to get to in these two hours. We begin with a light at the end of the tunnel. Sources telling CNN about an alleged terror plot. Could New York tunnels unleash a deadly wave of attacks?
President Bush defending his policies in the Midwest and takes on the local media. But is Chicago his kind of town?

And London at a standstill one year after terrorists struck. Remembrance day for an act that Londoners cannot forget.

And good morning on this Friday morning. I'm Daryn Kagan.

We begin with New York City tunnels. Could terrorists turn them into weapons? CNN has learned of one alleged plot. Bombs unleashing deadly floods on Manhattan similar to those that swallow New Orleans. Here is what we know at this hour in this CNN security watch.

Sources telling us that terrorists plotted to blow up tunnels in the New York City area. Not clear how far the plot developed. Whether it's ever gotten past the talking stage. Minutes ago Lebanon confirming that one person has been arrested in Beirut. Sources say there is no imminent threat to American citizens. The alleged plot was uncovered in recent months.

CNN justice correspondent Kelli Arena has been working her sources on the story. Allan Chernoff is outside New York's Holland Tunnel, which does run underneath the Hudson River.

Kelli, we'll start with you as you set the stage for us on this alleged plot. Good morning.

KELLI ARENA, CNN CORRESPONDENT: Good morning, Daryn.

Well, here's what we know at this hour. Sources do confirm for us that there was a plot that was uncovered to attack tunnels in the lower east side of Manhattan. The tunnels were not specifically named, Daryn. But as you know, "The New York Daily News" named the Holland Tunnel as one of those targets, and that is in lower Manhattan. But again, the intelligence that was gathered did not specifically name a tunnel.

The talk about the flooding of New York City. You know, my sources are telling me that that's a lot of conjecture and extrapolation. And, in fact, the intelligence never actually went that far in terms of specifically what they hoped they would accomplish except to disrupt New York City's economy. You know there have been several studies done on those tunnels. The terror assessment studies that show that the tunnels are virtually bombproof.

Nonetheless, the FBI says that this is a threat that was taken very seriously, Daryn. They put out a statement saying that so far there's no imminent threat to New York City or any other place in the United States. But they really wouldn't go much further than that. But counter terrorism sources that we're spoken to say that this plot was in the really early stages, Daryn. There were no explosives that we know of that were purchased. This was at the talking stage.

There is, as you said, one person in custody in Beirut. They are looking for -- officials are looking for about half a dozen, six or seven, other people who are allegedly involved in this plot. And I'm told the cooperation with Lebanese security forces was excellent.

Daryn.

KAGAN: What do we know about the one man who was arrested in Beirut?

ARENA: Not much. We know that his name is Amir Andalousli. That he was taken into custody some time ago. This is, as you said, an investigation that's been going on for several months. I'm told that he's been in custody for "some time." I can't get any better than that, Daryn.

KAGAN: All right. Do we know how it was uncovered?

ARENA: Well, now that is an interesting discussion.

KAGAN: Let's discuss.

ARENA: "The New York Daily News" has reported that there was information that was gathered off of the Internet -- chat rooms. I am told by several sources that that is accurate. That there was some information that was gathered off the Internet.

But I can tell you that several officials that I spoke to would not go there at all. They were adamant and they were really angry that -- you know the way that that information was gathered was being leaked out by officials or by elected officials. We're not sure exactly how this information got out there. But they said that completely defeats the purpose of this war on terror. I mean they, you know, they find ways to gather information and then people leak the ways that they gather information. That ends up in the press and the terrorists know what they're doing and change their tactics.

KAGAN: Right.

ARENA: So a lot of people were really angry and just would not go there. Would not comment. Said that, you know, it would endanger the investigation. As a matter of fact, Daryn, there were a lot of officials who are very angry that this news came out at all.

KAGAN: Well, because let's backtrack here. This actually was uncovered a few months ago, right, and this is actually an ongoing investigation?

ARENA: That's right. That's right.

KAGAN: But, you know, game over, right?

ARENA: And there are people -- right. And it's people that they're still looking for and so now you've got this plastered all over the place, you know, what the plot was and that they're looking for people and that, you know, people go undercover. You don't know where they're at in stages of surveillance or, you know, investigating and getting people to provide sourced information. Once something becomes -- you know, gets into the light and becomes public, people clam up, as you know. Investigations, you know, come -- hit dead ends that they wouldn't have hit before. So lots of discussion today that I've had with a number of officials about leaks and the problem of leaks when these investigations are still underway.

KAGAN: All right, Kelli, thank you. Kelli Arena.

Now let's go to lower Manhattan. Our Allan Chernoff is there. He's outside the Holland Tunnel. That one was mentioned by "The New York Daily News." We're just hearing in our reporting, I think, Allan, that it was just tunnels in lower Manhattan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Daryn, I can tell you that the security this morning outside of the Holland Tunnel is extremely tight, not only here in Manhattan, but on the other side in New Jersey. In fact, when I went into the tunnel early this morning, there were armed guards in front of every single toll plaza and that is usually not the case. These were New York-New Jersey Port Authority police officers holding automatic weapons. Very often you do see police officers on either end of the tunnel, but typically not in front of every single toll plaza. So again, security tight.

And typically security is quite strong for the Holland and the Lincoln Tunnels. Inside of the tunnel, there are cameras about every 200 feet or so. So every inch of that tunnel is observed on closed circuit television. Also, trucks, large trucks are not permitted inside of the Holland Tunnel. Only trucks that actually have two axles.

In spite of all these security precautions, some driver this morning are a bit on edge.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Now I'm scared because I didn't know about it. I live in Jersey.

UNIDENTIFIED MALE: Well I think it's a bunch of baloney. It's nothing to worry about.

(END VIDEO CLIP)

CHERNOFF: Let's talk a bit about the feasibility here. The Holland Tunnel is actually two separate tunnels. Two tubes that are tucked underneath the river bed of the Hudson River. At their deepest point they are 93 feet down below the water level. And they are cast iron tubes a foot and a half thick, I believe. These are also re- enforced with concrete.

So Kelli mentioned earlier that bombproof is the analysis that's been done. These are pretty tight tunnels. And this tunnel was actually an engineering marvel when it was completed in 1927. The Lincoln Tunnel, further uptown, is much more modern. But nonetheless, very solid tunnels and tight security.

The other issue here, the whole plot supposedly was to flood lower Manhattan. Well, lower Manhattan, the Wall Street district, is about a mile south of where I'm standing outside of the tunnel. The fact is that Manhattan is above sea level.

There is very little that compares in Manhattan to the situation in New Orleans. Manhattan is built above sea level as opposed to New Orleans. There are no levees here. In fact, engineers say, if the tunnel were to actually be bombed, if some water got out, you'd simply would not see lower Manhattan flooded. That's not going to happen by blowing up a tunnel.

KAGAN: All right, Allan Chernoff in lower Manhattan, thank you for the explainer.

CNN security watch keeps you up-to-date on safety. Stay tuned day and night for the most reliable news about your security.

On to President Bush. He is in Chicago this hour. He is glad- handing Democrats, stumping for Republicans and getting ready to face reporters. Our White House correspondent Suzanne Malveaux along for the ride.

Doesn't look like it's too much of a windy city today, Suzanne. Good morning.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Good morning, Daryn. It's actually rather beautiful.

President Bush, as you know, trying to mix things up here in Chicago. Last night a birthday bash with the mayor, Richard Daley, then a fund-raiser for the Republican gubernatorial candidate. And, of course, today what is happening is they are kicking off this new public relations campaign for the president to bring his domestic and international agenda directly to the American people. So this press conference in less than an hour is not only going to involve us, but also local reporters being able to ask the president a series of questions.

What we do expect, however, is that North Korea is going to be front and center. As you know, President Bush, over the last 24 -48 hours, on the phone making a high level diplomatic talks and discussions with the leaders of those involved in the six-party talks, Japan, South Korea, Russia and China, trying to get them all on the same page. Of course, some believe there should be tough economic sanctions. Russia and China very much set against that. We heard President Bush last night with Larry King in his exclusive interview trying to explain the U.S. strategy here of why it's important that all members of those six-party talks send the same message.

(BEGIN VIDEO CLIP)

LARRY KING, CNN ANCHOR: Since it's always better, one would think, to talk to somebody, would you meet with Kim Jong?

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Oh, I think that's -- I think he'd love to have the United States sit down at the table alone with Kim Jong-Il. The problem is, we tried that and it didn't work.

I think the best way to solve this problem diplomatically is for there to be other nations around the table with us so that when he looks out, when he looks at the table or he looks at the world he hears China and the United States speaking in one voice, or China, the United States, Russia, Japan, and South Korea speaking with one voice.

I am into solving problems and I'm convinced the strategy we've got is the best way to solve this problem.

(END VIDEO CLIP)

MALVEAUX: So, Daryn, of course the president saying he has a strategy here. But the big question, does he have the credibility? Does he have the standing with other world leaders to convince them that this is, in fact, the right path, the right way to go? Well, he's going to be tested again next week. He is traveling to Germany, as well as Russia, for the G-8 Summit. He's going to be across the table, face-to-face with some of those key leaders to try to convince them to get tough with North Korea.

Daryn.

KAGAN: Suzanne, my question this morning, why Chicago? This is like Democratic heaven? Why would he come here for the first of one of these local media news conferences?

MALVEAUX: Well, you know, he's been coming and going here in Illinois, at least, for quite some time. You bring up a good point. There's a really interesting gubernatorial race. He was pushing for the Republican candidate last night raising money. He says he's going to be doing a lot of fund raising.

But, of course, this is part of a larger campaign to prove that, hey, I'm reaching out to the heartland of America. I understand the local concerns. And that is what they hope it will translate to the Republicans for the midterm elections saying, look, we believe we're responding to your concerns, therefore hopefully the Republicans will keep the majorities in the House and the Senate.

KAGAN: All right, Suzanne Malveaux in a lovely looking Chicago today. Thank you.

And we are standing by for the president's news conference. That will come up at the top of the hour. CNN will have that for you live.

The president says he is not looking for approval. His poll numbers are hovering around 40 percent. But Mr. Bush says his job isn't about being popular. Here is another part of his interview last night with Larry King. An exclusive right here on CNN.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I look at life as a series of opportunities to make this world a better place. One reason there's a problem is because we've confronted them. The status quo was unacceptable to me and therefore it's important to deal with problems before they become acute.

Let me say something about polls. If you have a president who worries about polls, it means you could have a president who makes decision based upon the polls. You cannot achieve big goals and accomplish hard things if you're worried about opinion polls. The president that chases the opinion poll is the president that will have failed policy in my judgment. I like to tell people I would rather be -- when history looks back, I'd rather be judged as solving problems and being correct, rather than being popular.

(END VIDEO CLIP)

KAGAN: Would you like to hear more of what the president had to say to Larry? Go to cnn.com/politics. Also you can watch "Larry King Live" every weeknight here on CNN at 9:00 Eastern, 6:00 Pacific.

7/7. It is one year later. London pausing to remember the terror bombings. You'll see it on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: We're about 44 minutes away. President Bush holding a news conference. He'll be in Chicago. You'll see that live here at the top of the hour right here on CNN.

First, though, some international headlines for you.

7/7 in London and all across England is a day of remembrance. Two minutes of silence at midday. Part of the solemn events on the anniversary of the London terror attacks. Wreaths were laid at Kings Cross Station at the minute that three bombs explode there a year ago. An hour later, a second ceremony at Tavistock Square where a fourth bomb destroyed a bus last year. Fifty-two people were killed in the attack on London's transit system.

A seven petal flower template 40 feet across on display in regent's park. People are filling it with a pattern of carnations. This evening the names of all 52 victims will be read in the park. Anniversary tributes in a city that doesn't need a calendar to remember. More now from CNN's Matthew Chance.

(BEGIN VIDEOTAPE) MATTHEW CHANCE, CNN CORRESPONDENT, (voice over): You could forget it ever happened. Commuters still crowd London streets. Packed trains and buses still crisscross the British capital.

But scratch the surface and people remember. People like Catherine on an underground train a year ago when a powerful explosion ripped through her compartment.

CATHERINE DANIELS, BOMBING SURVIVOR: All the doors and windows were blown out, so I was able to jump out of one of the doors with the help of a very nice gentleman. And, yes, but I walked out of there. I had so much open wound, open skin on my legs and on my face and I felt zero pain.

CHANCE: Acts of terror that shook the city. Suicide bombings carried out by homegrown militants. The targets, innocent Londoners killed and maimed on their way to work.

And this has been one response, 12 months of arrests and police raids targeting suspected militants. Police say new leads from intelligence sources on potential threats are still streaming in.

PETER CLARKE, ANTI-TERRORISM BRANCH: We've charged 41 people since last summer with terrorism offenses in the United Kingdom. That's unprecedented. There are now some 60 people awaiting trial on terrorist charges in the U.K. That, too, is unprecedented. The level of investigation is not abating. If anything, it's getting more intense.

CHANCE: More intense in a country with little outward sign it's feeling the pressure.

So on the face of it, London appears to have bounced back. Gone are the concerns so acute a year ago about traveling on the city's transport system. And the place feels like the buzzing capital it was before the bombings last year.

But figures from the latest survey suggest all the not well. A big gap has opened up between some British Muslims and the rest of the country.

The numbers are unsettling. According to the survey, 13 percent of British Muslims view the London bombers as martyrs. Seven percent believe suicide attacks in Britain can be justified. Another 2 percent say they'd be proud if a family member joined al Qaeda.

Community leaders point out the figures still refer to a tiny minority of Britains 1.6 million Muslims and insist police and government policy are partially to blame.

DR. MOHAMMAD BARI, MUSLIM LEADER: There's a serious perception in the community that police have that wrong in their intelligence and that's why we have seen high profile arrests only to be -- saying that they are released (INAUDIBLE) charged. So this gives the perception in the community that the community probably is targeted. CHANCE: Police raids have especially targeted British Muslims. One was even shot and injured before being released. Some critics argue the country has turned against them in the wake of the bomb attacks. But many ordinary Britains, even survivors like Catherine, say they, at least, bear no grudge, even against those who inflicted such pain.

DANIELS: I pray for them and I feel sorry for their families. I think about, for instance, the mother and the brothers and sisters of this -- of the bomber and I can just imagine the pain that they must feel. But I do forgive them. Yes.

CHANCE: A year on forgiveness and hate, it seems, are two sides of Britain's divide.

Matthew Chance, CNN, London.

(END VIDEOTAPE)

KAGAN: Royals killed here in the U.S. Two members of Tonga's monarchy were killed in a car crash near San Francisco on Wednesday night. Authorities say a teenage driver slammed into an SUV carrying the prince and princess of the south Pacific island nation. The couple's driver was also killed. The teen was allegedly racing at speeds up to 100 miles an hour. She wasn't hurt. Police booked her on suspicion of vehicular manslaughter.

Colin Powell is on the sick list in Colorado. The former secretary of state was released from an Aspen hospital early this morning. Powell apparently got sick at a restaurant while dining with former President Bill Clinton. They were in Aspen for a conference. A police spokesman says Powell blames an combination of altitude sickness and something that he ate.

Also on the sick list, cancer sidling opera great Luciano Pavarotti. He's recovering from pancreatic surgery in New York. Pavarotti's manager tells the Associated Press today that doctors removed a malignant mass from his pancreas. It was found shortly before Pavarotti, who is now 70, was to resume his farewell tour. The tenor's remaining concerts for this year have been canceled. He hopes to resume touring in 2007.

Once again, some top stories we're looking at today. More on this alleged plot that's been uncovered in New York City about apparently trying to blow up one of the tunnels at least. And also President Bush within the hour holding a news conference. We now understand it will be at the top of the hour. You'll see that live here on CNN.

Also ahead, Gerri turning around the e-mail bag and letting the viewers steer what we talk about today for "Five Tips."

Hi, Gerri.

GERRI WILLIS, CNN CORRESPONDENT: Hey, Daryn, good to see you. You know, we love getting questions from viewers. Stay tuned for answers on everything from personal bankruptcy to how to get rid of flees. "Five Tips" is next.

(COMMERCIAL BREAK)

KAGAN: Well, it is Friday. How about that? That means casual dress in a lot of offices and a kind of a more laid back approach to "Top Five Tips." What do you think about that?

Gerri's like (INAUDIBLE) they're like let's let the viewers do Gerri's job.

WILLIS: Hey, that's totally unfair. We come up with the answers. They only come up with the questions.

KAGAN: That's true. They're just steering the bus as we like to say.

WILLIS: Yes, well, and they have great questions.

KAGAN: They do.

WILLIS: That's just the point. Like the first one here.

KAGAN: Yes, let's get right to it. Olivia wants to know from Gerri. She says, "my neighbor is planning on installing an above ground swimming pool. If, for some reason, there is a pool failure and my house suffers water damage, will my homeowners insurance policy cover it or do I need flood insurance?" We've talked a lot about flood insurance, Gerri.

WILLIS: Exactly. Well, the like is not -- it's not going to be a flood insurance policy that's going to take care of a problem like that. It'll probably be your homeowner's policy, except if you have a huge loss in which case your neighbor's liability insurance could come into play. Even a pool installer's liability insurance could play a role if the pool was installed recently, say within a year.

But these liability cases can take years to settle. And for all those homeowners out there who do have pools, you should make sure you have extra liability insurance. And it's not just malfunctioning pools that are the problem, it's the increased potential for injury when you have say the neighborhood kids over for a swim. So you definitely want to be covered for that.

KAGAN: Now to my old stomping grounds, Phoenix, Arizona. Scott has come on some hard times. Sorry to hear that, Scott. But he wants to tell you that he is, "considering strongly declaring personal bankruptcy. Can you tell me what I should take into account before I finalize that decision? What do I stand to gain versus what do I stand to lose?"

WILLIS: Scott, I just would try to avoid bankruptcy at all costs. Here's why. It's the single most devastating blemish on your credit score. Consider this. If you have an average credit score, bankruptcy will push that number down by more than 150 points. Not only that, but it stays on your credit record for 10 years. A decade. Now that can cause your insurance rates to rise. Interest rates on loans to rise. Don't forget that employers, landlords, check your credit before they work with you.

And there are debts that even bankruptcy can't wipe out. If you've got a big problem with child support, alimony, student loans, that's not going to forgive that debt. And you should also know that Congress, of course, passed a new bankruptcy law last year. It makes it harder to declare bankruptcy. If you do qualify for Chapter 7, you debts will be wiped out. But if you only qualify for Chapter 13, you'll still be paying that money back.

KAGAN: You mentioned credit report. Patricia wants to know how does she initiate a credit freeze.

WILLIS: Well, a credit freeze is only available to people in 23 states. A security freeze locks or freezes access to your credit report for anybody who wants to know the numbers. It's available in some states like California, Louisiana, Nevada, Utah. Some states, like North Carolina, require that you're a victim of identity theft first. You can find out about the law in your state at consumersunion.org. Requests for credit freezes need be to sent certified mail to your credit bureau and then they charge you money when you unfreeze. It's pretty -- the devil's in the details with the credit freezes.

KAGAN: And now to the animal topic. Sophia a cat lover. Love you for that, Sophia. But she's having a bit of a challenge. She says she has "three cats and they all have fleas. Unfortunately, the fleas are now taking up residence in nearly every room. They hop up and bite us whenever we enter the rooms. What are the best ways of ridding our house of them?

WILLIS: You love your pets but, you know. Hey, we do a lot of work on this on "Open House."

KAGAN: Right.

WILLIS: Bugs are an issue for homeowners. And the experts tell us that vacuuming is the way to go with flees. You know why? This is really bizarre. But the vibration of vacuuming causes fleas to hatch early, so they get sucked up along with the mature flees. So you eradicate the entire population.

Make sure you vacuum three to five days a week, and don't forget to throw that bag out every other day, because otherwise the fleas can remain inactive for 18 months and come back to haunt you later. You can always call a professional pest control company or have professional carpet cleaners in.

And Daryn, just want to mention that if anybody out there has questions, send us an e-mail at 5tips@CNN.com. We want to hear from you -- Daryn.

KAGAN: Very good. I'm going to throw in for Sophia (ph), keep your cats indoors. You do need professional pest control. And once a month flea treatment for your cat.

WILLIS: Voice of experience there.

KAGAN: Yes. Thank you, Gerri. Have a great weekend.

WILLIS: You're welcome. You, too.

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