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CNN Live Today

Displaced Lebanese Civilians Trying to Return Home; Further Clashes Between Israeli Military, Hezbollah; U.S.-Iran Tensions

Aired August 15, 2006 - 11:00   ET

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

DARYN KAGAN, CNN ANCHOR: We're going to roll right into our second hour of CNN LIVE TODAY.
Here's what we know right now from the Middle East.

The fragile U.N. cease-fire appears to be holding despite sporadic outbreaks of violence. Israel has just reported that it killed three Hezbollah fighters on this, the second day of the truce.

Syria and Iran's leaders are praising Hezbollah and blasting Israel. Both countries are key backers of the militant group. President Bush says they're responsible for Hezbollah's actions.

Along the Litani River in southern Lebanon, thousands of displaced civilians are trying to return home, but the region is still very dangerous, with plenty of unexploded munitions left over from the fight.

And now let's get the latest from the Lebanese capital. Our Beirut bureau chief Brent Sadler is standing by.

And Brent, you are going to tell us especially what is happening with people who left their homes to avoid the fighting. They're now going back and not very happy with what they're finding.

BRENT SADLER, CNN BEIRUT BUREAU CHIEF: That's right, Daryn, tens of thousands of Lebanese civilians are crammed in vehicles, loaded with mattresses and their cooking gear that they've been living with for the past month, heading south to home, choking all the main routes and the bypasses because many main routes have been hit by Israeli bombs and are impossible. Nevertheless, these people are continuing to try to get home in the south, areas that came under heavy devastation by Israel's plus-four-week campaign.

Now, despite warnings by the IDF, the Israeli Defense Forces, that Lebanese should stay away until the Lebanese army has deployed and international troops are deployed, these people are really throwing their caution to the wind. They're paying no attention to what the authorities in Lebanon are saying and they're just sticking to this journey with one mind, to get home as fast as they possibly can, no matter what they find there.

One of the most remarkable scenes was on the Litani River, where the bridge's crossings have been blasted by Israeli military action, and people were trying to find their way through a shallow section of the Litani, either walking -- some women were carrying their children -- walking across the river, others were trying to drive in vehicles not suited to cross rivers in that way. They were getting stuck, and I saw one woman bailing out water with her shoe.

Remarkable scenes there -- Daryn.

KAGAN: Well, and they're going home sometimes to homes that don't exist.

SADLER: They're going home -- going to communities that very often have been subjected to wholesale destruction. In one of those areas close to the border with Israel, I joined a team of Lebanese Red Cross workers. They had just been able to get into that village for the very first time, and they found some grim aftermath of the attacks there.

They found a number of bodies of civilians. I could see clearly they were civilians that had been killed in the fighting. This, the first time those officials, those Red Cross representatives have been able to get to that danger zone. And they're doing that, they hope, day by day as they work their way across those villages that have been heavily damaged.

Anyone who doesn't have a home, that they can rely on an extended family, or Hezbollah's own welfare network to make sure they have temporary shelter and accommodation and sustenance -- Daryn.

KAGAN: Is there talk of rebuilding or is it too soon?

SADLER: Well, Hassan Nasrallah, Hezbollah's chief, has made it quite clear that Hezbollah will bare the burden through its backers -- that's Iran, of course, primarily in terms of financial support -- to help the south rebuild. Just how that's going to come about remains to be seen. But I can tell you that the devastation of the road networks, sewage, water, bridges, not to mention homes and livelihoods, immense destruction -- Daryn.

KAGAN: Brent Sadler, live from Beirut, thank you.

Let's head south to Jerusalem. And that's where we find our Paula Hancocks.

Paula, what's the latest from there?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Daryn, we understand from the Israeli military that there have been further clashes in southern Lebanon between Hezbollah fighters and the Israeli military itself. The IDF says earlier this afternoon it killed three Hezbollah fighters as a group of four started to walk towards a group of soldiers. And they said that they acted in self-defense.

Now, this has not been the only case that we have seen in southern Lebanon, showing just how tenuous and how fragile this cease- fire is, as clashes are breaking out in different areas. Now, we understand from the IDF chief of staff, Dan Halutz (ph), that he thinks the complete withdrawal of Israeli troops could be carried out within 10 days. Now, obviously, many are hoping it will be quicker than that, as the longer that Hezbollah fighters and Israeli Defense Forces are in the same area, then the more potential for clashes there are.

Now, we've also been hearing from the Israeli foreign minister, Tzipi Livni this afternoon. We know that this evening she'll be on her way to New York.

She's going to see Kofi Annan. Going to see the U.N. secretary- general, to talk about the logistics and how exactly this resolution is going to pan out on the ground.

Now, she did say today that a military campaign, no matter how brilliant by Israel, was never going to be enough to release the two kidnapped Israeli soldiers. The soldiers taken back on July the 12th that actually sparked this crisis. Now, some in the Israeli public will see this as a turnaround, as this is the assumption of why the Israeli military operations started in the first place.

She also had an answer to president Bashar al-Assad of Syria. He made a speech saying that Israel will obviously see that Hezbollah has won and not want to have this new Middle East, as Condoleezza Rice had suggested a couple of weeks ago, saying that that is now an illusion. Now, Tzipi Livni said that Syria should stay out of Lebanese affairs, and a warning, really, that Syria should not try and use Hezbollah militia and other militia to try and control things on the ground -- Daryn.

KAGAN: And Paula, what about the latest on Ariel Sharon and his condition?

HANCOCKS: Well, we've had an update this Tuesday from the medical center that's looking after him, 24 hours a day. He has double pneumonia, apparently, in both lungs. He's being treated with steroids and also with antibiotics.

But a former aide to Sharon spoke to us this morning and said that he is likely -- it's likely to be a couple of days before they know whether or not he is actually responding to this treatment. But we are hearing from the medical center that his condition had deteriorated greatly.

Ironic that it would deteriorate so badly yesterday, on the day of the cease-fire between Israel and Lebanon. And he is known as the defense minister in 1982 who initially took Israeli troops into Lebanon, at that point to try and get rid of the PLO -- Daryn.

KAGAN: Thank you so much.

Paula Hancocks live from Jerusalem.

So this conflict that went on for 34 days claimed more than 1,000 lives. In Israel, IDF officials say 167 people have been killed since the fighting began on July 12th, including 53 civilians. In Lebanon, security forces say 908 people have been killed, most of them civilians. It's unclear how many Hezbollah fighters have died.

The Middle East crisis has underscored the friction between the U.S. and Iran.

CNN's Aneesh Raman is the only U.S. network reporter in Iran right now. He filed this report.

(BEGIN VIDEOTAPE)

ANEESH RAMAN, CNN CORRESPONDENT (voice-over): For every Hezbollah rocket fired on northern Israel comes an allegation that it came from Iran and now the head of the country's Supreme National Security Council, in an exclusive interview with CNN, responds.

(on camera): Is Iran at all arming Hezbollah?

ALI LARIJANI, IRANIAN NATL. SECURITY COUNCIL (through translator): Hezbollah does not need Iranian weapons. You can find anything on the market. The type of weapons Hezbollah uses are not that hard to find. And by the way, the Americans haven't admitted that they're supplying Israel with weapons.

RAMAN (voice-over): It seems the Iranian strategy, for every question about their actions, comes a response that challenges the United States. When asked about comments made by the U.S. ambassador to Iraq, Zalmay Khalilzad, that Iran is festering civil unrest there, Larijani said it was the opposite.

LARIJANI (through translator): Yes, they want civil war. This is not an analysis. We have information. The same ambassador you just mentioned had a meeting not long ago with terrorist groups inside Iraq. He asked for three things: one, to aim their guns away from the U.S. forces; two, to aim their guns at the Iraqi Shias; and three, to aim their weapons at Iran.

RAMAN: A startling accusation he says came from Sunni insurgents. Interesting because Iran is a Shia nation. In Iran, there is no doubt this day that Hezbollah won the war, that Iran is now in a stronger regional position, and they feel the U.S. must respect that.

LARIJANI (through translator): I think the Americans are wise enough not to entangle themselves with Iran. They're still struggling in Iraq. What did they gain in Lebanon? Can anyone claim that Israel has won in Lebanon? Why should the U.S. act unwisely? We're prepared for all the eventualities.

RAMAN: Including the August 31st deadline set by the United Nations for Iran to suspend its uranium enrichment. Larijani says there are no plans to do that, leaving Iran on a collision course with the West.

Aneesh Raman, CNN, Tehran

(END VIDEOTAPE)

KAGAN: We want to show you some pictures just into us here at CNN. This just took place a few minutes ago. This is Israeli vice premier Shimon Peres. He is arriving at the State Department. He's having closed-door meetings with the secretary of state, Condoleezza Rice, today. They are talking about efforts to implement the U.N. resolution and can the U.S. help in making good on its high-profile goals in disarming Hezbollah.

More on what is happening with that meeting ahead here on CNN.

Interrogations, searches. British security agents ramping up their investigation, trying to get to the bottom of the airlines terror plot.

CNN's Dan Rivers has that story.

(BEGIN VIDEOTAPE)

RIVERS (voice over): British security sources have told CNN they are confident in finding bomb-making material, even as the detailed forensic investigation into the alleged terror plot focuses on this apartment in east London. These exclusive CNN photos taken by a neighbor with a camera phone show plastic containers being carried from the flat by police.

UNIDENTIFIED MALE: Most of it's been packaged up. There seems -- drums, the chemical drums are sealed tight (INAUDIBLE). There's a few of them have come out.

RIVERS: The intensive police search is also continuing in woods near the town of High Wycombe. According to security sources, the police are looking for evidence of explosives testing.

The British security sources confirm the evidence seen so far indicates the alleged plotters were planning to blow up aircraft at their maximum cruising altitude mid-Atlantic, positioning the explosives at the weakest part of the aircraft, intending for evidence to sink to the bottom of the ocean, potentially, the sources said, allowing similar, follow-up attacks.

(on camera): Security sources have told CNN that they expect that some of the suspects being held at this high security police station in central London may well be released without being charged.

(voice over): The British security sources have also cast doubt on multiple British and Pakistani media reports that the suspects have links to this man, Matiur Rehman, one of Pakistan's most wanted men for his alleged links to al Qaeda.

Security delays eased slightly at London's main airports after the threat levels on both sides of the Atlantic were reduced. But Britain's home secretary stresses the security service MI-5 is still hunting dozens of potential terror cells.

JOHN REID, BRITISH HOME SECRETARY: There are a number of other security service operations under way. There is still a very serious threat of an attack. The threat level is at severe, indicating the high likelihood of an attempted terrorist attack at some stage. RIVERS: MI-5 officers who were following the movements of the suspects have already been re-deployed to monitor dozens of other suspected terror cells around Britain. The security service estimating there are more than 1,200 individuals of concern across the U.K.

Dan Rivers, CNN, London.

(END VIDEOTAPE)

KAGAN: Authorities have relaxed some of those carry-on restrictions at British airports today. Passengers there can now take on one item of hand luggage, but it cannot be larger than a laptop computer. Laptops and mobile phones are permitted. Cosmetics, gels, toothpaste, liquids and sharp objects remain banned. Britain's threat level remains at severe today.

It's called the most dangerous two miles in America. Where is it and why it's so tough to secure, ahead on CNN, the most trusted name in news.

Also, we're starting something here at CNN we want you to be a part of. Watch and learn how you can become a bigger part of the world's most trusted name in news.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE (voice over): Ever wish you could say, "I report for CNN"? Well, here's how you can join the most trusted name in news. When you have pictures or video of breaking news or cool stories from your part of the world, go to cnn.com and click on "I- Report." There you'll get complete instructions on how to submit your stories to CNN.

It's fast and easy. And if we use your pictures or video on air, you can tell you friends, "I report for CNN."

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(COMMERCIAL BREAK)

KAGAN: Let's check in at the U.N. now.

About the beginning of the last hour, we saw U.S. ambassador to the United Nations, John Bolton, step up to the microphone. Just caught the very end of his comments. Want to hear what he had to say.

Our senior U.N. correspondent, Richard Roth, will tell us now.

Richard, hello.

RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Daryn, the chase is on for troops to go to southern Lebanon, multinational troops to work under U.N. command. There's already a 2,000-man force in southern Lebanon, the UNIFIL operation. And now that's going to be considerably beefed up because of that resolution passed Friday night, a resolution that so far seems to have gone a long way towards halting the violence.

The Pentagon, according to U.S. Ambassador John Bolton, has sent a military planner up. The U.N. peacekeeping department says it's moving along and accelerating the normal slow process informing these multinational troop deployments. The ambassador says the U.N. is under some pressure now to get the troops.

(BEGIN VIDEO CLIP)

JOHN BOLTON, U.S. AMB. TO U.N.: So this is really a test now for -- for the secretary in getting the enhanced UNIFIL in place and decisions that have to be made by the government of Lebanon. So, how and under what circumstances the deployment of the Lebanese armed forces and UNIFIL takes place, and how the consequent withdrawal of the Israeli forces take place is still playing out. I'm not sure you can be encouraged by it or discouraged by it at this point.

(END VIDEO CLIP)

ROTH: Ambassador Bolton said President Bush has been making phone calls to countries. Right now, Daryn, it's like a giant program in the hallways. You ask an ambassador, "Are you in? Are you sending troops?" And many of them are still considering it. France, Italy, these are some of the countries expected to send soldiers -- Daryn.

KAGAN: All right. Richard Roth at the U.N.

Thank you for that.

Still ahead, we're going to talk about what they call the most dangerous two miles in America. Where is this stretch? Why is it so tough to secure?

Ahead on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Talking about a stretch that is only two miles long, but is packed with, get this, more than 100 potential terror targets. Putting millions of people at risk.

CNN's Randi Kaye has the story.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): In New Jersey, the two-mile stretch from Newark Airport to Port Elizabeth has been dubbed by terrorism experts the most dangerous two miles in America.

RICHARD CANAS, DIRECTOR, NJ HOMELAND SECURITY: It's the consequence that frankly scares the pants off of us. When you think about what might happen in such a congested area.

KAYE: On this swathe of land, chemical plants, rail yards rail lines, refineries, an international airport, and the third largest port in the country. (on camera): In all, there are more than 100 potential targets in this two-mile stretch, some more deadly than others.

New Jersey's Homeland Security Director says just one chlorine gas plant, if attacked, could bring lethal harm to more than 12 million people in a 14-mile radius.

(voice-over): But the massive port, Port Elizabeth is Director Richard Canas's main concern. Why? Because more than 4 million containers arrive here each year. The problem is, what's really in them? After all, containers are inspected not on the way in, but on the way out.

CNN's Security Analyst Clark Kent Ervin.

CLARK KENT ERVIN, CNN SECURITY ANALYST: First of all, we need more money. Secondly, we need more and better technology. Third, we need to have a requirement for better perimeter security.

KAYE: But Director Canas got only 10 percent of the $800 million he requested to secure the state. So the port relies on tips from the public. But the fact is this year, Homeland Security received one tip about a suspicious vessel at Port Elizabeth.

And when it comes to the chemical plants, Canas says only a fraction of the security requirements is mandated by the state of New Jersey. But most is left to the companies themselves.

(on camera): Why is the responsibility falling to them to protect their areas?

CANAS: I would say 90 percent of these companies have recognized and invested some of their own money into upgrading their security. Are they all complying? No, no, there are some that claim that it would break the bank to put up a fence or upgrade buffer without federal or state assistance.

KAYE: Many of the potential targets fall in Carney, New Jersey, where Jack Corbett is deputy chief of police.

(on camera): How many people do you have patrolling this area? And is it enough?

JACK CORBETT, KEARNY, NJ DEPUTY POLICE CHIEF: We have adequate patrols down there. Could we staff that area 24 hours a day with 100 people to try and keep terrorists away? I don't think that's possible.

KAYE (voice-over): Is it possible to protect against a terrorist attack? Even the railways are vulnerable, given the passenger train bombings in India and London. Director Canas has added rail marshals and is increasing training for transit police.

But is this enough to deter terrorism? There is a reason they call this the most dangerous two-mile stretch in America.

Randi Kaye, CNN, on the New Jersey Turnpike.

(END VIDEOTAPE)

KAGAN: And you can see more of Randi's reports on "ANDERSON COOPER 360," weeknights at 10:00 Eastern, only here on CNN.

The ravages of war, the measures of victor. What was won, what was lost? And what still is ahead? A closer look at the crisis in the Middle East on CNN.

You are watching the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Let's get back to the crisis in the Middle East. Here is what we know at the half-hour.

A building smolders in southern Lebanon, but the fragile cease- fire still holds. Overnight, there were a small number of clashes.

And today, a deadly incident in southern Lebanon. The Israeli military says that soldiers opened fire when four Hezbollah fighters came toward them. At least three of the militants were killed.

As Israeli troops pull out, United Nations forces move in. The U.N. says it's expanding operations in southern Lebanon with troops now patrolling day and night.

More than 1,000 dead on both sides of the border. Many more wounded. And now, yet another casualty of war.

The truth.

(BEGIN VIDEOTAPE)

KAGAN (voice over): Within hours of the guns falling silent, a new volley erupted. The weapons in this exchange, words and the all- important claims of victory.

EHUD OLMERT, ISRAELI PRIME MINISTER (through translator): The soldiers of the IDF have struck a major blow at this murderous organization.

HASSAN NASRALLAH, HEZBOLLAH LEADER (through translator): We are facing a strategic and historic victory.

KAGAN: So who really won? Israel says it achieved its military goal by weakening Hezbollah's stranglehold on southern Lebanon. But at home, the government of Israeli Prime Minister Ehud Olmert is facing mounting criticism. Heckled by three Israeli lawmakers yesterday, he acknowledged shortcomings in the military operation and said there would be more fighting in the future.

And Hezbollah may have gained ground politically just by standing fast. It certainly seems to have retained the support of many Shia in Lebanon. UNIDENTIFIED FEMALE: I said to Hezbollah, "God bless you."

UNIDENTIFIED FEMALE: I hope that when I be big and adult, I want to be a doctor for -- for Hezbollah.

KAGAN: Hezbollah's apparent surge in popularity may upset Lebanon's delicate political balance and undermine its fledgling democracy.

Last year, outraged civilians marched through Lebanon streets. They blamed Syria for the assassination of former Prime Minister Rafiq Hariri. Under international pressure Syria withdrew its troops from Lebanon. But it has retained influence through Hezbollah. Now Lebanon's future much depends on whether U.N. resolution 1701 is fully enforced and Hezbollah becomes a purely political organization without the potential to threaten Israel.

(END OF VIDEOTAPE)

KAGAN: Let's take a closer look with a journalist who specializes in international affairs. Robin Wright has reported from 130 countries. I would love to see your passport. It's probably really thick. She's now a diplomatic correspondent for "The Washington Post." Robin good morning, great to have you here with us.

ROBIN WRIGHT, "WASHINGTON POST": Good morning.

KAGAN: We're going to do like a score card type of thing and not to make light of the situation, but just to break down into who has gained and who has lost. And I'd like to start with Hezbollah. What did they gain and what did they lose in all of this?

WRIGHT: Well, within the Arab world it will be seen as the second time that Hezbollah has won against Israel. The first time in 2000 when, after a 22-year occupation, Israel retreated for the first time voluntarily without any kind of peace agreement. This is the second time when it's the longest war the Israelis have ever fought against an unconventional army, something that the Egyptian, Syrians and Jordanians were never able to do.

KAGAN: On the other hand, their infrastructure has been not destroyed certainly but they've taken a big hit with that. And they're responsible for starting a war that has come at the cost of so many Lebanese civilians.

WRIGHT: Absolutely. And down the road there may be a reckoning politically. This is something that has devastated Lebanon. And the people at the moment in looking at the political status quo, what's happened on the ground see it as a victory. The toll will come later.

KAGAN: So the people of Lebanon, definitely, they lose. Any winners in the government that proved too weak to even shove Hezbollah out?

WRIGHT: The one winner is probably the prime minister. This is a former businessman who took over the Lebanese government after the assassination of Rafiq Hariri last year and he's proven to be a strong and persuasive leader, impassioned pleas to the international community, stood firm on certain things for the resolution that he won. He has emerged as one of the stronger leaders Lebanon has had in decades.

KAGAN: But not powerful enough to kick out Hezbollah or to stop them or to disarm them.

WRIGHT: Oh absolutely, that's right. And the challenge will be getting his very fractious government to go along, including Hezbollah, with the next political steps.

KAGAN: Israel, what does Israel gain?

WRIGHT: Not a whole lot. The reality is that this was a very unsuccessful war in terms of its strategic goals. Israel had hoped to weaken, cripple, or dismantle Hezbollah's infrastructure in the south. And potentially eliminate its leadership. And it achieved neither. This is going to be very extensively debated within Israel, I think, in the months ahead.

KAGAN: Because it will now have an international force along that Israeli/Lebanese border?

WRIGHT: Well that will help it but the reality is that Hezbollah can still be close to the south. It still has missiles that have range beyond the Litani, into Israel. It still is a potential threat.

KAGAN: And finally, the United States, what did the U.S. gain and what did the U.S. lose in all this?

WRIGHT: Well in the end the U.S. did with France pull off a masterful compromise in an international resolution. But the reality is its image is badly battered in the international community, particularly in the Middle East. It is seen as having allowed Israel to engage in this conflict with U.S. weapons. Its credibility as an honest broker on the broader issue of an Arab/Israeli peace is going to be complicated. And this comes after problems in Iraq, in Afghanistan and in dealing with a transition for the Palestinian territories. So this is going to make life a little bit more difficult.

KAGAN: Robin, what's the next chapter you're going to be watching to see how this unfolds?

WRIGHT: I think we have to watch on the ground. The fact is, as long as Israeli troops are inside Lebanese territory, they are going to be targets for Hezbollah, not missiles fired into Israel proper but Israel will see this, as, again, its resistance function. And so you can see perhaps not major airstrikes and missile attacks between the two countries but actual fighting potentially on the ground inside southern Lebanon.

KAGAN: Robin Wright from "The Washington Post." Appreciate your time.

WRIGHT: Thank you.

KAGAN: Thank you.

The Department of Homeland Security charged with keeping you safe and spending your tax dollars to do it, but are they making the best use of your money? CNN's Joe Johns looks at that.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT: You would think America's security watchdogs would be better than just about anybody else at watching how your taxpayer dollars are spent. But you'd be wrong. And in fact, this is not only about saving money, it's about saving lives.

DAVID HEYMAN, STRATEGIC & INTERNATIONAL STUDIES: If money is spent efficiently, effectively to the right priorities, we're safer, we're more secure. If it's spent with waste, fraud and abuse, we're helping the terrorists.

JOHNS: The Department of Homeland Security has been slammed again and again for failed financial controls. Now, a new report prepared for congress says DHS contracts worth more than $34 billion had significant waste or abuse or were poorly managed. Hundreds of millions for radiation detectors that can't distinguish between weapons grade nuclear material and cat litter. Border surveillance cameras that don't work in cold or hot weather. Spending on luxury hotels, long distance calls, even payments for elevator operators at a fancy hotel in Manhattan. Plus, government credit card abuse, charges for iPods, training at golf and tennis resorts, the purchase of beer brewing equipment.

(on camera): Then there are the costs that keep on costing. The government spent $1.3 billion on airport baggage screening machines that require the baggage to be taken from the conveyer belt to the machine and all the way back to the conveyer belt.

(voice-over): The report called this inefficient, but the government accountability office estimates it will cost an additional 3 to $5 billion to upgrade to more efficient machines. We asked the Department of Homeland Security for an interview. No one got back to us. But only a few weeks ago, a DHS officer told the House government reform committee, the department doesn't have enough staff people to actually follow how contractors are spending the money.

ELAINE DUKE, HOMELAND SECURITY DEPT.: We need more. We have an increase coming in, in the current '07 budget of about 200 additional and we are working towards needing even more over time.

JOHNS: But it's not just DHS. Analysts say congress itself is the root of the problem.

VERONIQUE DE RUGY, AMERICAN ENTERPRISE INST.: Right now, congress is all worked up about absolutely everything and want a lot of money to go everywhere. And there's very little thinking across the board about which are the important threats we should be thinking about. JOHNS: De Rugy and others say the major problem is that the money isn't being spent according to which areas are subject to the greatest danger. And experts say it could be years before DHS heals itself. Joe Johns, CNN, Washington.

(END OF VIDEOTAPE)

KAGAN: And still with news about your security, President Bush is at the National Counterterrorism Center in Virginia this morning. He's getting briefed on security at home. And the fight against terrorism overseas. We're expecting remarks from the president soon and we'll bring them to you as soon as they are available.

Remember the guys from Texas arrested after buying tons of cell phones? The FBI says it can find no evidence that they are involved in a terror plot. And no imminent threat to a major Michigan bridge. The men were arrested last week after buying 80 prepaid cell phones. Police found 1,000 phones in their van and pictures of that bridge. The three are still in jail while authorities investigate further.

But an Ohio prosecutor is dropping terror-related charges against two men held there. They were also arrested for buying hundreds of prepaid cell phones. Again, in this case, the prosecutor says he could find no terror link.

And now to the ever-changing face of America, a more vivid, perhaps surprising picture. A census report shows minorities made up a greater share of the population in every state last year except West Virginia. Most states are also seeing more immigrants with the biggest jump coming in South Carolina. Hispanics are increasing their hold as the nation's largest minority group at 14.5 percent. The biggest boom in the Hispanic population in Arkansas. Minorities are also majorities in Hawaii, New Mexico, California and Texas and the District of Columbia. Across the U.S., non-Hispanic whites make up 67 percent of the population that is down slightly from 2000. For more on this, let's bring in our Gary Nurenberg who is in Washington. Gary you're counting the numbers and you're looking at them. Good morning.

GARY NURENBERG, CNN CORRESPONDENT: Good morning Daryn. The Census Bureau's 2005 American Communities survey is a good way to monitor changes in the country and there are some interesting ones. We've always been a country of immigrants, and that is increasingly true now. In 1990, fewer than 20 million persons living in the country were foreign-born. Now that number has increased 57 percent to more than 30 million. The number of illegal immigrants is up 3.5 million in 1990, more than three times as many, 12 million last year. The traditional list of states still has the most immigrants, California, Texas, Florida, New York, New Jersey and Illinois. But the immigrant population is fanning out and moving to areas that haven't had high concentrations before. Biggest growth in the southeast but other areas of the country are seeing increases, too. The immigrant population in South Dakota households, for example, is up 44 percent in the last five years. 34 percent in Indiana, Delaware 32 percent, Colorado 28 percent and New Hampshire 26 percent. The southeast, the Rockies, the Midwest, New England, it's changing communities that haven't seen large immigrant populations before and is widening Daryn, the number of areas where the debate over immigration really hits home.

KAGAN: Now what about some basic stuff like men versus women?

NURENBERG: Go figure. I don't get this at all but in the United States according to the new Census Bureau statistics, there are more than six million more women than men. Don't ask me to explain it, but there it is.

KAGAN: But you know that could mean one of two things, either we rule the country or it explains why some of us won't have a date on Friday night.

NURENBERG: There could be a third possibility.

KAGAN: What is that?

NURENBERG: They counted wrong.

KAGAN: Well there's that. Let's just go with that. I'm voting for that. Thank you Gary.

Still ahead, hurricane Katrina evacuees, where are they now and how are they doing? A new study shows that evacuees who went to Birmingham and Atlanta are faring better than those who landed in Houston and San Antonio. Experts say Birmingham and Atlanta absorbed fewer evacuees. Many of them had the resources to leave New Orleans on their own. Many evacuees who went to Texas were poor or ill, people who had to be rescued. The study was sponsored by Ralph Nader's Apple Seed Foundation. A little quiz for you now, can you name all the Supreme Court justices? Ok. How about the seven dwarfs? Clarence Thomas and Sneezy go nose to nose. You'll find out who was better known. You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Now the latest in the fight against AIDS. An estimated 6,000 women worldwide are infected with HIV every day. For many there is little they can do to protect themselves. But new help could be on the horizon. Our senior medical correspondent Dr. Sanjay Gupta reports.

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DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Sokobi's story can be hard to hear. She says she was sold into sex work by her family at age 15 and she spent the last 20 years as a prostitute in Mumbai, India. Health wise she's been relatively fortunate. She is still HIV negative. But she also lives in a world where she has to convince her partners to use a condom. Life may soon change for Sokobi and many other women around the world. Sokobi has just found a couple of strong new advocates, in fact they're two of the richest people in the world, Bill and Melinda Gates, who are using the huge platform of the International AIDS Conference in Toronto to talk about and fund what they believe is the most recent and biggest development in the fight against aids, microbicides. BILL GATES, BILL & MELINDA GATES FOUNDATION: We believe that microbicides and oral prevention drugs can be the next big breakthrough in the fight against AIDS.

GUPTA: Now microbicides is just a fancy name for gels or creams a woman can insert to block HIV infection. Large studies of their effectiveness are expected out next year.

DR. ZEDA ROSENBERG, INTERNATIONAL PARTNERSHIP FOR MICROBICIDES: If they're 30 percent effective, depending on how many women actually use it and how quickly it gets rolled out, but you could save several millions of lives in the first three years.

GUPTA: And already, newer, exciting products are being developed. One clever idea, make these gels out of medicines now used to treat HIV. One of the most intriguing is a drug called tenapovir(ph).

DR. JUSTINE JUSTMAN, COLUMBIA UNIVERSITY: Using tenapovir(ph) as a microbicide is a really interesting idea. As you probably already know, tenapovir(ph) is now used as a pill and it's part of the cocktail that patients with HIV take as part of their treatment.

GUPTA: And elsewhere, other researchers are testing the same medicine tenapovir(ph), and some other drugs in a pill form to see if women who aren't infected can stay that way by taking a pill before sex. Although the research on all these approaches is still in the early stages, it's also steps closer to giving control back to women. Like Sokobi, keeping them from getting infected with HIV. Dr. Sanjay Gupta, CNN reporting.

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KAGAN: To get your "daily dose" of health news online, logon to our website, you'll find the latest medical news, a health library and information on diet and fitness. The address is cnn.com/health.

The airlines banning liquids is putting a strain not just on passengers but on the baggage handlers as well. Susan Lisovicz joins us from the New York Stock Exchange with more on that. Susan hello.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hello Daryn. It's somewhat predictable, right? I mean the new airline regulations are causing a 10 to 40 percent increase in checked luggage because passengers are checking more carry on bags rather than risk leaving behind toiletries and cosmetics. That has airlines and airports scrambling to beef up already strained baggage handling systems. And with federal officials saying there are no plan to lift the ban on liquids, industry experts see more flight delays, lost luggage and increased costs for airlines. Many airlines are bringing in extra workers to help handle the load, but even before the liquid ban went into effect, complaints about mishandled baggage had been rising steadily. The carriers are also facing an unforeseen problem. Passengers are arriving hours before flights and the airlines are struggling to find places to store their bags. It's getting very cluttered Daryn in addition to everything else. KAGAN: Yes. Well something's got to give.

LISOVICZ: Yes.

KAGAN: You would think.

LISOVICZ: You would think. I mean, experts say the Transportation Safety Administration will likely phase pressure to relax the bans at some point. Airlines and consumer groups may push for more advanced equipment at airport checkpoints, something the TSA is working towards. But it takes lots of money, millions of dollars to deploy new equipment widely. And even then, no piece of machinery currently available can detect liquid explosives. So it is a fluid situation quite literally, isn't it Daryn?

KAGAN: Well speaking of fluid, what are they drinking up there on Wall Street? Because there's happy, happy happening all over the place.

LISOVICZ: They're feeling good. Well you know what, it was one of the reasons blamed for yesterday's rally fizzling late afternoon, it was the inflation report that came out an hour before the opening bell today and it was a relief to see that it was a smaller than expected rise in wholesale prices. Inflation at the wholesale level, which, raises the possibility that the Federal Reserve may, again, hold interest rates steady when it meets next month. And so there you see, very nice gains, the Dow is holding on, nearly triple digit gains, up 97 points, 11,195. The NASDAQ composite, meanwhile, is up 35 points, about 1-3/4 percent. And that is the latest from feel-good Wall Street. You're watching CNN, the most trusted name in news.

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KAGAN: All right, pay attention, seven dwarfs, three stooges and only one superman. Americans seem to know these characters better than real-life leaders. A Zogby International poll finds only a quarter of Americans can name at least two Supreme Court justices. But 77 percent of us can name at least of Snow White's seven dwarfs. 60 percent correctly said that Superman's home plant was krypton, but a mere 37 percent knew that mercury is the closest planet to the sun. Three quarters correctly named the Three Stooges, Mo, Larry and Curley. But only 42 percent knew the federal government consists of a legislative, executive and judicial branches. The survey was commissioned by American Online, which like CNN is a "Time Warner" company.

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