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CNN Live Today

Kidnapped Journalists Appear on Tape; Katrina Survivor Meets with President Bush; Iran Nuclear Dispute

Aired August 23, 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: Boy, do we have a lot to get to over the next couple hours together on LIVE TODAY, including these developing stories. Just released, the first images of two journalists. They were kidnapped last week in Gaza City.
A 180 in the air as well to tell you about. A U.S. airliner goes back to Amsterdam after some passenger's behavior causes some concern.

And meeting with the president. A Katrina survivor who drove his FEMA-like trailer to Washington gets a one-on-one. The one he wanted with President Bush. It's happening this hour. And then he gives a one-on-one with me. We'll talk with him just ahead.

First, let's get to the breaking news out of the Middle East. It is about those two kidnapped Fox News journalists. CNN's Paula Hancocks follows the story from Jerusalem.

Paula, hello.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Daryn.

Well, this is the first point of contact that the families of the two Fox journalists kidnapped on August 14th have had that the two journalists are in fact safe and alive. Now we just had this video that we can see from Ramattan, this news agency in Gaza itself. It's been given by a group called the Holy Jihad Brigades. Now this is an unheard of group. This is not one that anybody is familiar with. And what they're demanding is that all Muslim prisoners be released from American jails within the next 72 hours and then the two will be released. Let's listen to the tape.

(BEGIN VIDEO CLIP)

STEVE CENTANNI, FOX JOURNALIST: Been taken captive in Gaza and are being held prisoner here. We're in fairly good condition. We're alive and well and in fairly good health. We get lots of clean water, food every day, access to the bathroom, shower, clean clothes. And our captors are treating us well. So just want to let you know I'm here and alive and give my love to my family and friends and ask you to do anything you can to try to help us get out of here.

OLAF WIIG, FOX JOURNALIST: I guess I would add for myself, and I know my family will already be doing this. But if you could apply any political pressure on local government here in Gaza and the West Bank that would be much appreciated by both Steve and myself. I know, Anita, you will already be doing that. To my family, I love you all. Please don't worry. I'll do all the worrying for us and we'll be together soon.

CENTANNI: We love you all and we want to go home. Hope to see you soon. Thanks.

(END VIDEO CLIP)

HANCOCKS: Now, these two journalists have been held longer than any other journalists kidnapped in Gaza. This is the tenth day since they were taken. August 14th they were taken from their television van just outside the Palestinian security headquarters in Gaza City, which is usually quite a safe area in Gaza City itself. Taken by masked gunmen.

So we have got the first point of contact for the negotiators. We know that a New Zealand diplomat is on his way down to Gaza. He's been speaking with the Palestinian prime minister, Ismail Haniyeh, who has given his personal commitment to try and do everything he can to release these two men and secure their safe release. So at this point we do have a claim of responsibility and we do have demands.

KAGAN: And tell us more about those demands and what we're learning about the group that is holding these two men.

HANCOCKS: Well, at this point, this group, the Holy Jihad Brigades, is a group that we're not familiar with. This isn't a group that we've heard of before, suggesting it could be a splinter group of one of the more main militant groups, all of which denied involvement in this kidnapping from the start, or it could just be a very small group of people.

It was interesting, according to many of the experts, saying that this was able to be kept such a secret in a place like Gaza. It's very densely populated in Gaza. People are living in close proximity to everyone else. Everyone knows everyone else's business. It was unusual that this was able to be kept a secret for so long. Suggesting that maybe this is a completely new group asking for all Muslim prisoners to be released from American jails within 72 hours.

Now the actual quote we have is, "if you implement our conditions, we will implement our promise. Otherwise, you will have to wait." No indication of what that means exactly if these conditions aren't met.

Daryn.

KAGAN: All right. Thank you. Paula Hancocks live from Jerusalem.

Let's go to the Pentagon now. They are watching the story unfold. They're watching very carefully. Our Barbara Starr has that angle of the story.

Barbara.

BARBARA STARR, CNN CORRESPONDENT: Hello. Good morning, Daryn. A very, very somber situation here. As far as that demand goes, the White House, the Pentagon, the State Department, no official reaction yet. The State Department, we are told, is the place to ask the question about any response to this situation. In terms of the demand, there are about 450 prisoners being held by the United States, of course, at the facility at Guantanamo Bay, Cuba. No reaction on whether the administration would release those people in response to this demand. One can only make an assumption about what that answer will be.

Steve Centanni is someone that's very well-known, very respected journalist here in these Pentagon hallways. He covers this building. He had been overseas, of course, for some period of time in various war zones. But he's well-known here. Very well-respected. He is someone who's a very credible, honest, forthright journalist by anybody's standard. Very well-liked. A very gentle soul is how several reporters who know him describe him. Someone always with a smile on his face.

We don't know Mr. Wiig. He has not covered this building. But Steve, we do. And, of course, Pentagon officials behind the scenes here very concerned hoping both these men get released very quickly.

KAGAN: So, Barbara, given what you know about Steve Centanni, you're not surprised to see him so calm in such a difficult situation?

STARR: I'm not. He's a very calm, very gentle man. But normally, walking around these hallways, he's a guy who always has a smile on his face, says hello to everybody, very bright-eyed, very enthusiastic, always looking up, always looking forward. You look at this tape, it's tough, Daryn, when it's someone you know. And, of course, all news organizations have seen so many of their journalists in tough situations in recent years.

KAGAN: Yes. Two parts of Barbara Starr. I guess a journalist, which we also have the woman who I know is wishing Steve and his family and the Wiig family as well, wishing them well and sending your good thoughts.

STARR: Absolutely.

KAGAN: Yes, Barbara, thank you.

A U.S. plane was turned back in the skies over Europe today. The Northwest flight was en route from Amsterdam to Mumbai, India. Northwest said the pilot returned to Amsterdam after a couple of passengers displayed what they're calling behavior of concern. To Dutch fighter jets escorted the plane. It landed safely. An airport spokeswoman says there were arrests but she wouldn't say if they were passengers. The flight has been rescheduled for tomorrow.

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

Interesting man making his way to Washington, D.C. His White House or bust trip is paying off. Hurricane Katrina survivor Rockey Vaccarella lands an Oval Office meeting with President Bush. They're doing that this hour. He drove to Washington with a FEMA-style trailer in tow to deliver his message -- "don't forget the Gulf Coast." Our White House correspondent Ed Henry joins with us with more on the meeting. He is at the White House today.

Good morning, Ed.

ED HENRY, CNN CORRESPONDENT: Good morning, Daryn.

That's right, a change of heart from the president who originally had said he was not going to meet with Rockey Vaccarella. But he will now meet -- in fact, he's meeting right now in the Oval Office with Rockey, this Hurricane Katrina victim. And also we're told, in a brief amount of time, the president is going to actually be making brief remarks on the south lawn of the White House with Rockey in tow.

Rocky had wanted to cook a Cajun-style meal for the president from that trailer. He did some of that cooking with a friend yesterday, but the White House sent Don Powell (ph), the Hurricane Katrina czar, instead. There was a change of heart last night perhaps in part because Rockey Vaccarella has not just been talking about bad news from Katrina. He is filming a documentary right now and is trying to find stories of hope and says that he's here also not just to complain about a slow response from FEMA and other agencies, but to thank the president directly for all the help he has given to the Gulf region.

This may be a sign that the White House was a little concerned about creating another Cindy Sheehan kind of situation, refusing to meet with someone in a high-profile setting like this. So close to the Katrina anniversary, one year anniversary coming up next week. The White House certainly did not want to create a political problem for itself.

This morning White House spokeswoman Dana Perino pointing out the White House believes the Cindy Sheehan situation is apples and oranges. That just because the president is now giving in and meeting with Rockey Vaccarella, that this does not mean that he's going to meet with Cindy Sheehan. Of course, he did meet with Cindy Sheehan once with a group of other families, but obviously Cindy Sheehan and her supports have been looking for the same kind of one-on-one meeting.

Daryn.

KAGAN: Well, and when he said no to Cindy Sheehan, because this is what came to mind when I heard about this this morning, when he said no to Sheehan it was, well, if I say yes to her for a one-on-one meeting, then there's just no end. Well he can say yes to some. I'm just wondering, why Rockey?

HENRY: Well, you know, yes, I mean when I walked through those gates, some days there are literally dozens of people who want an audience with the president on any number of causes from all around the world. And this perhaps does open the door to various people seeking meetings with the president. We asked White House spokeswoman why Rockey? Also, there are a lot of Hurricane Katrina victims. What about his story?

We're told that White House aides on Monday, before the president's press conference, informed him of the Rockey situation in case he got asked about it at that big press conference and, in fact, the president already knew about it. The White House is not sure how. Perhaps he saw it on the media. He's been doing interviews on CNN and elsewhere in the last week. And so the president just said, look, he's traveling around. I want to meet with him. And so the president made the decision himself last night.

Also a tiny bit of news. The president is also, in the next couple of days, going to be signing a proclamation declaring next Tuesday a national day of remembrance for Hurricane Katrina victims, as well as some of the heroes who helped save lives from that deadly storm last year.

Daryn.

KAGAN: All right, Ed, thank you. Ed Henry at the White House.

And, by the way, President Bush making the most of it. He is going to come out after that meeting and address the microphones. You'll see that live here on CNN. Also, after Rockey Vaccarella meets with President Bush, he'll be meeting with me. We have a one-on-one interview with him. We'll find out what is it like to finally get the meeting he was so confident he was going to get. And, in fact, Rockey spoke with our Rick Sanchez earlier this week on "American Morning" and Rick had a chance to ask Rockey, all right, you get your chance, what would you tell the president? Here's what he answered.

(BEGIN VIDEO CLIP)

ROCKEY VACCARELLA, SURVIVED KATRINA: I want to let President Bush know that this is what we're living in. But we're taking the high road. I'm thanking him for the FEMA trailer, thanking him for having a roof over our head, air conditioning, cookery, and that. But letting him know that the job, like many, many Americans are saying, is not nearly complete.

And I just want to let him know that, you know, thank you for the FEMA trailer, thank you for what you've done, you know. It's a long journey from Washington to New Orleans to get down there. People think the hurricane hit and we could be down there in one day. That didn't happen.

So what, you know what, that happened. It's over with. Let's move on. We're not going to wait for the federal government to come bail us out. You know, we're Americans, definitely, and we're going to -- if we have to do it ourselves, we're going to do it ourselves. But we do need his help.

(END VIDEO CLIP)

KAGAN: And that was Rockey Vaccarella earlier this week. Once again, he's meeting with President Bush, as we understand it, right now and we'll have a chance to talk with him in just a little bit after that meeting. It is almost a year after Katrina. A good time to take measure of recovery. Live to the Gulf -- our Gulf Coast correspondent, Susan Roesgen. She is in New Orleans lower ninth ward.

Susan, good morning.

SUSAN ROESGEN, CNN CORRESPONDENT: Good morning, Daryn.

You know, there is some progress a year after Katrina. Behind me, about 10 minutes ago by that front end loader was a house. A damaged house. It's now been knocked down and pieces of it are being dumped into the dumpster in front of that house. In this area, the lower ninth ward, one of the worst hit areas. Very few people have been able to come back. That's the way it is in this area. Parts of the New Orleans area have some progress, have more people coming back, and other parts are still struggling.

Now it was interesting there to hear Rockey Vaccarella say we don't wait for the federal government to bail us out. Certainly in St. Bernard Parish, which is just a few miles from here in the lower ninth ward. The lower ninth ward sits between the city of New Orleans and St. Bernard Parish. St. Bernard Parish, you know, like a county of 28,000 people, this is a group of people in that parish who have really pulled themselves up by the bootstraps. Their shrimp bootstraps. A big community of fishermen. People work there at an oil refinery.

St. Bernard Parish is one of those can-do areas that has been coming back more rapidly than most. But, you know, Rockey Vaccarella has taken a FEMA trailer up there to say, Mr. President, have you ever actually been in a FEMA trailer? I can tell you, Daryn, that the president has been to this area about a dozen times since Hurricane Katrina, been on the ground, but I don't think I've ever actually seen him in a FEMA trailer.

I've been in a FEMA trailer. People who live in this area live in FEMA trailers. They can tell you, very small, good to have a roof over their heads, but this is symbolic for Rockey to bring a FEMA trailer. Not his own, by the way, Daryn. His own has to stay in front of his damaged house in St. Bernard Parish because FEMA rules wouldn't let him unhook it and take it up there. But he's saying he took a replica FEMA trailer to the president. And if the president steps inside . . .

KAGAN: And, Susan, let me just jump in here because here's President Bush and Rockey Vaccarella.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: He caught my attention because he decided to come up to Washington, D.C., and make it clear to me and others here in the government that there's people down there still hurting in south Louisiana and along the Gulf Coast. And Rock's a plain spoken guy. He's the kind of fellow I feel comfortable talking to. I told him that I understand that there's people down there that still need help. And I told him the federal government will work with the state and local authorities to get the help to them as quickly as possible.

ROCKEY VACCARELLA, KATRINA SURVIVOR: That's right.

BUSH: He met with my friend Don Powell. Don's job is to cut through bureaucracy. I told Rockey the first obligation of the federal government is to write a check big enough to help the people down there. And I want to thank the members of Congress and both political parties that helped us pass over $110 billion of appropriations. And that's going to help the folks.

VACCARELLA: Absolutely.

BUSH: And I told him that to the extent that there's still bureaucratic hurdles and the need for the federal government to help eradicate those hurdles, we want to do that. Now, I know we're coming up on the first-year anniversary of Katrina and it's a time to remember. It's a time to particularly remember the suffering that people went through.

Rockey lost everything. He lost -- he and his family had every possession they had wiped out. And it's a time to remember that people suffered. And it's a time to recommit ourselves to helping them. But I also want people to remember that a one-year anniversary is just that because it's going to require a long time to help these people rebuild.

And thank you for your spirit.

VACCARELLA: Thank you, Mr. President.

BUSH: It's an amazing country, isn't it?

VACCARELLA: It is. You know, it's really amazing when a small man like me from St. Bernard Parish can meet the president of the United States. The president is a people person. I knew that from the beginning. I was confident that I could meet President Bush. And my mission was very simple. I wanted to thank President Bush for the millions of FEMA trailers that were brought down there. They gave roofs over people's head. People had the chance to have baths, air condition. We have TV. We have toiletry. We have things and necessities that we can live upon.

But now I wanted to remind the president that the job's not done. And he knows that. And I just don't want the government and President Bush to forget about us. And I just wish the president could have another term in Washington.

BUSH: Wait a minute.

VACCARELLA: You know, I wish you had another four years, man. If we had this president for another four years, I think we'd be great. But we're going to move on.

President, it's been my pleasure.

BUSH: You're a good man, Rockey.

VACCARELLA: You are too. BUSH: Thank you all.

VACCARELLA: Thanks a bunch.

KAGAN: Well, if every meeting went like that, President Bush would invite everybody to come in and see him. Rockey Vaccarella, the man from St. Bernard Parish, Louisiana. When he left his home in southern Louisiana with a FEMA-like trailer on the back of his car, he was convinced he would get this meeting with the president. And that he did.

You heard the president talk about the bureaucratic hurdles of getting the entire amount of funds to people in Louisiana and all along the Gulf Coast. And then you heard Rockey Vaccarella say he had a two-part message. He wanted to tell President Bush and the government thank you for all that you've done, but please don't forget about us.

Ed Henry is listening in.

Ed, if you could pick up on that point that President Bush was making about the bureaucratic hurdles. Some suggestion in the media that the federal government has done their part in having a huge chunk of money, but the state of Louisiana, in particular, doesn't have its act together in getting the money to the people who really need it.

HENRY: Sounds a little familiar, huh? Just like a year ago where you've got a Republican president taking some heat, a Democratic governor down in Louisiana in terms of the response, a Democratic mayor in Ray Nagin, and the fingers were being pointed in all directions as to who is really to blame. Once again now that the money, the checks have been cut, people still not getting the relief.

I mean you heard Rockey there thanking the president for the response, but we've heard that he himself didn't get his FEMA trailer for a few months. And that the response to him was delayed as well. I think, though, that on the eve of this anniversary, obviously this White House nervous about the political damage, the fallout one year later, and what better way to buck up the president's spirit to hear Rockey say four more years.

The president hasn't been hearing that very much lately, especially given the situation in Iraq. He's dealing with the hot spots in Iran, North Korea, in addition to one year later still dealing with Hurricane Katrina. So maybe a little bit of a light moment there. But it is a reminder certainly for the president directly that one year later a lot of people still looking for that help.

Daryn.

KAGAN: Absolutely. Let's head now back to Louisiana and our Susan Roesgen who is standing by.

Susan, I know you've had the chance to go up and down the Gulf Coast in the last year. Do you see a big difference just in your reporting of the kind of come-back that's happened let's say in Mississippi versus there in southern Louisiana?

ROESGEN: Well, generally we believe that things have happened faster in Mississippi. But I want to touch on something that Ed said, Daryn. People all around the country ask me, wait a second, I thought we gave you guys $120 billion? Hasn't that been the federal commitment about $120 billion all along the Gulf Coast? Why is it that we still see in areas like the lower ninth ward so little development?

And I spoke to Chairman Donald Powell just a couple of weeks ago and we talked about those numbers. Out of $120 billion, $85 billion went straight to FEMA. It didn't go to individual homeowners, it went straight to FEMA. And FEMA has been dolling it out, for better or for worse, sometimes quite slowly, to different people in this area.

Only $4 billion has gone to what they call the Louisiana Recovery Authority. And that money is going to be dolled out. The checks are not actually cut yet. But it would be up to $150,000 per homeowner who's lost everything to either rebuild or rebuild elsewhere. So, yes, it seems like we have had a lot of money pumped in this area, but very, very little of it, Daryn, has gotten to actual individual homeowners, especially here in Louisiana who need it.

KAGAN: Frustration all the way around. Taxpayers who see their money coming out of their pockets and then people there in Louisiana who would like to get some of that.

Susan, thank you.

Susan, by the way, to remind you, is part of our New Orleans bureau. We are, of course, the only network that has a fully staffed bureau there in New Orleans with correspondents living there and reporting up and down the Gulf Coast to tell us more about the recovery from Katrina and Rita.

Back to Rockey Vaccarella now. He met with Donald Powell last night. You heard Susan mention him. Donald Powell, just to let you know who he is. He is President Bush's Gulf Coast recovery coordinator. Vaccarella explained what he and his family went through during Katrina.

(BEGIN VIDEO CLIP)

ROCKEY VACCARELLA, KATRINA SURVIVOR: Now, I was there. And I was in 150-mile-per-hour winds. The houses withstood everything. We thought we had it made. All of a sudden here goes the levee behind my house somehow got breached. And I looked down the street and there's about an eight-foot wave coming, tumbling cars. I start running to my house with my son. I told my brother, Johnny (ph), I said, it's coming. He's in a two-story across the street. So he ran and got it on camcorder camera and started videoing. I went and shut the door and I'm thinking I'm going to hold all this water back and it just kept coming.

(END VIDEO CLIP) KAGAN: Well, Rockey is still waiting to get his house rebuilt, like thousands of others. Powell claims that billions of dollars in promised federal funds have been slowed by local government indecision.

I want to tell you a little bit more about where Rockey Vaccarella lives. It's St. Bernard Parish. Among the areas that were hardest hit by Hurricane Katrina. Nearly one year later, the numbers speak for themselves. According to "USA Today," more than 27,000 homes were damaged when levees failed and 10-feet of water surged into the parish. Just 10,000 building permits have been issued to repair the residential damage. The local school district opened nine days ago. Enrollment is down 5,800 students. That's about 2/3 below the enrollment before the hurricane.

Do you want to share a story like Rockey's or tell us your experiences in dealing with Katrina? Just go to cnn.com and send an I-Report. CNN would like to see your videos or photos and hear your stories. Just send it to us via computer at cnn.com. Or on your cell phone you can punch I-Report at cnn.com. And your I-Report is your chance to share what you have witnessed.

One more note on Rockey Vaccarella. Once he wraps up his meeting with President Bush, he'll step up to the microphone and we'll have a little chat with him about his journeys.

Ahead on CNN, more on the two journalists who have been kidnapped in Gaza. They're now being seen on a DVD for the first time in captivity.

Plus, just when you think they're almost out, the Pentagon pulls them back in. U.S. Marines who already have served may be called up to serve again.

And the nuclear dispute with Iran, it could be taking another new turn. Find out on CNN. You're watching the most trusted name in news.

(COMMERCIAL BREAK)

KAGAN: Let's check the markets on this Wednesday morning. They've been open about an hour. Not looking so hot this morning. But, of course, we've seen worse. The Dow is down a bit. It is down seven points. Nasdaq also headed in the same direction. It is down just over a point.

Just in to CNN over the last hour, the first pictures of two journalists in captivity. Fox correspondent Steve Centanni and freelance cameraman Olaf Wiig were kidnapped last week in Gaza City.

(BEGIN VIDEO CLIP)

STEVE CENTANNI, FOX JOURNALIST: Been taken captive in Gaza and are being held prisoner here. We're in fairly good condition. We're alive and well and in fairly good health. We get lots of clean water, food every day, access to the bathroom, shower, clean clothes. And our captors are treating us well. So just want to let you know I'm here and alive and give my love to my family and friends and ask you to do anything you can to try to help us get out of here.

OLAF WIIG, FOX JOURNALIST: I guess I would add for myself, and I know my family will already be doing this. But if you could apply any political pressure on local government here in Gaza and the West Bank that would be much appreciated by both Steve and myself. I know, Anita, you will already be doing that. To my family, I love you all. Please don't worry. I'll do all the worrying for us and we'll be together soon.

CENTANNI: We love you all and we want to go home. Hope to see you soon. Thanks.

(END VIDEO CLIP)

KAGAN: The group that has them, no one has really heard of them before. They call themselves the Holy Jihad Brigades. They say they're behind the kidnapping. The group released that statement with the video. It says it wants Arab prisoners released from U.S.-run jails such as Guantanamo.

A diplomatic showdown with Iran over its nuclear program could be just days away. So far there are no signs that Iran will give in to U.N. demands and suspend its nuclear program. CNN's Aneesh Raman is in Tehran. He is, by the way, the only U.S. television network reporter in the Iranian capital. He joins us by phone.

Aneesh, hello.

ANEESH RAMAN, CNN CORRESPONDENT: Daryn, good morning.

It was a bit confusing yesterday. Iran's lengthy written response to the countries that had backed an incentives deal to get Iran to stop its nuclear program ahead of that U.N. deadline by the end of the month. But we're getting further clarification today.

A newspaper here that is government leaning essentially says the response, in terms of a headline says, Iran will not suspend that program just because the U.N. Security Council is asking it to do so. Iran, though, is willing to slow down that program if that will bring about, in the words of the paper, peace. And as well that Iran is willing to talk about suspension if negotiations begin. Iran has said from the start it can be no pre-condition for talks that Iran suspend this nuclear program.

So where do we go from here? Essentially the ball is in the U.N.'s court, along with the western countries, to see if they are willing to embark upon a new round of negotiations with Iran. Next week we expect a press conference from the country's president, Mahmoud Ahmadinejad. He could further clarify or change Iran's response. And then, of course, that U.N. deadline. And the U.N. now is faced with an option. Does it want to talk more with Iran or has it talked enough and is it prepared and willing to take action.

Daryn. KAGAN: So it sounds like what we're hearing here is what we're hearing with a lot of international negotiations these days, and it has to do with sequencing. Which would go first, you or me?

RAMAN: Exactly. And both sides are caught in this same sort of struggle that they've been in for quite some time. Iran saying, we're not going to talk if you make us suspend our program before we do so. The U.N. community has said, we're not going to talk until you suspend your nuclear program.

That is a stalemate that really came to fruition in the latest U.N. deadline, where they mandated Iran suspend its nuclear program. They offered an incentives deal to try to get them to do so. But Iran is maintaining its stance, that this is its right, a peaceful civilian nuclear program.

Suspicion of a weapons program is not enough. Without credible evidence, they say, they will go forward with their program. And they've warned before, if the U.N. takes action against Iran for what they say is their right, they could kick out the IAEA inspectors, the U.N.'s nuclear watchdog, and pursue this program in secret -- Daryn.

KAGAN: Aneesh Raman, live from Tehran. Thank you.

Developing story now about a Northwest Airlines plane. This morning, it was turned around and headed back to Amsterdam.

Let's go to Jeanne Meserve now in Washington, D.C., with more on that -- Jeanne.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, it was a Northwest Airlines flight. And a U.S. official tells us that a team of federal air marshals, U.S. federal air marshals, was indeed on board that flight. The official said that the air marshals, in addition to the flight crew, observed what they called suspicious behavior as yet. They aren't spelling out exactly what that behavior was, but it was serious enough to turn the flight around.

Apparently, the flight crew told the passengers to obey the federal air marshals, who oftentimes remain undercover, only come out of cover when they feel it's a situation the flight crew might not be able to handle. They did reveal themselves in this instance. The pilot turned the flight, it landed back in Amsterdam, and according to the Transportation Security Administration, 12 people now being questioned in connection with this.

The U.S. official says there was no intelligence indicating there was a threat against this aircraft, that federal air marshals do sometimes travel on U.S. carriers. This was a U.S. carrier, Northwest Airlines, even though it was an international flight. And at this point in time, no indication as to exactly how serious the threat was against this aircraft -- Daryn.

KAGAN: All right. So we will wait to see what happens to those 12 people being questioned, as well as the passengers now stuck on the ground in Amsterdam. MESERVE: You bet.

KAGAN: All right, Jeanne Meserve, thank you.

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

(WEATHER REPORT)

KAGAN: Just when you think they're almost out, the Pentagon pulls them back in. U.S. marines that have already served may have to go again.

And he just had his one-on-one. This was his wish, to meet with President Bush. There is Rockey Vaccarella, the man who said he was going to meet with the president. He'll talk with me in just a minute, tell us what that meeting was like.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I got a couple mementos that I had lost a little bit.

UNIDENTIFIED FEMALE: What all did you get in there, Mr. (INAUDIBLE)?

UNIDENTIFIED MALE: I got a tie pin. I had like 30 ties I lost in Katrina, so I'll go buy some ties. And a bookmarker for my granddaughter Alex (ph). And he gave me a lot of tokens. He gave me a lot of tokens.

UNIDENTIFIED MALE: (INAUDIBLE)

UNIDENTIFIED MALE: I'm in the restaurant industry.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KAGAN: He is fresh from his one-on-one with President Bush. Now he's talking with me. Hurricane Katrina survivor Rockey Vaccarella joining me from the White House. And who would have ever thought that that sentence would be said on national television, and yet it is?

Rockey, good morning.

ROCKEY VACCARELLA, HURRICANE KATRINA SURVIVOR: Well, good morning to you.

KAGAN: Tell me about this meeting. How was it?

VACCARELLA: It was a fantastic meeting. It goes to show you that the little guy can get to the big guy when we need to. And President Bush is a president that's a people's president, and he met with me with open arms.

KAGAN: So tell -- give me the blow by blow. You go in. Was it in the Oval Office?

VACCARELLA: Yes, I was in his Oval Office.

KAGAN: And so you go in, is he standing, is he sitting?

VACCARELLA: Oh, he met me by the door. He was standing up. We shook hands. I gave him the key to our parish. We had coffee and just sat down and had a good old Southern conversation.

KAGAN: And did you tell him what you wanted to say?

VACCARELLA: You know, I got my message across. My message is very simple. I wanted to thank the president of the United States for sending so many trailers. So, you know what, there are many houses. There are roofs over people's heads. We have air conditioning, we have running water. We can survive down there like that. We kind of programmed our minds that we're on an extended camping trip while we rebuild.

And then I just wanted to let the president know, you know, hey, don't forget about us, and then he assured me that he wouldn't. The president's plate is full. I know that. He's got to worry about the entire world. And I didn't want to be a needle in his side. I just wanted to meet with him and just let him know, you know, some of the things that happened.

KAGAN: And so would you say you go the out of it what you wanted?

VACCARELLA: Absolutely. I feel 100 percent relieved, maybe that's a good word for it.

KAGAN: OK.

Now what's interesting in watching the interviews as you were making the drive up from Louisiana and even as you got closer to Washington D.C., people are like, come on, you're not going to meet with the president. You go, you know what, I've just decided I'm going to meet with the president, and it's going to happen. You believed.

VACCARELLA: That's right. That's right.

I've got a little angel on my shoulder. I lost a son back in '99, and he's been with me all the time, so I knew as long as he's with me I could think we can do anything.

KAGAN: Which I guess would answer my question. There's been so much publicity about people that the president won't meet with, like Cindy Sheehan. Ask yourself, why you? Why Rocky?

VACCARELLA: I don't know. You know, I can't answer that, why Rocky." You know, that's the president's decision and his staff and how people come across in America, and in America, you know, you can't come across always looking at the glass half empty. I always look at the glass half full. KAGAN: And so what's next for you and your family?

VACCARELLA: Rebuilding. We're going to continue to rebuild, and we're just going to move on with our life. You know, Hurricane Katrina was an interruption for not just me, for millions of people along the Gulf Coast, and now it's just keep on pushing and punching.

KAGAN: I know before you met with the president you met with the Gulf Coast recovery coordinator Don Powell. He came out there to your trailer. He seems to be saying I don't know if just to you, but also in the media, the federal government has put aside a huge chunk of money, but it's the states like Louisiana that don't have their act together in getting that money to people like you.

VACCARELLA: That's right. That's right.

KAGAN: And what do you think about that criticism?

VACCARELLA: Well, you know, Chairman Powell is a great man. He actually sat down in a chair with me. He ate some red fish and some good old Creole food that our chef Jason cooked, but, you know, I wish he would give me the check to disburse, but he won't do that.

KAGAN: Yes, you're not going home with that.

VACCARELLA: No, I'm not going home with that. But he assured me that they're watching the money, they're watching all the pennies where they go.

KAGAN: Very good. Welly, Rocky Vaccarella, we wish you safe travels back home.

VACCARELLA: I appreciate it. Thank you.

KAGAN: Thanks for sharing your journey. Appreciate it.

VACCARELLA: Thank you. All right.

KAGAN: President Bush is on the record. He says the federal government has committed a huge sum of money to Hurricane katrina relief, more than $110 billion. But officials say less than half that money has been spent. A report by congressional Democrats shows just over $18 billion from the FEMA disaster relief fund has gone to help katrina victims. The U.S. has paid national flood insurance claims amounting to $7.6 billion, and that includes victims of Katrina, plus Hurricanes Wilma and Rita. Much of those funds are still tied up by the bureaucratic red tape and the political bickering. Plus, it's widely reported that some of the money was wasted by fraud and mismanagement.

So those trailers that Rocky was talking about, they have been a source of shelter, as he was saying, but also many are being critical of them. The federal disaster agency ordered 135,000 trailers. Most came from large national manufacturers. Thousands sat empty for months. Some got mired in mud as far away as Arkansas. FEMA claimed federal regulations kept it from getting the trailers to the coast quickly. One of the rules forbid trailers from being positioned in floodplain areas.

Now let's go to the phones. Sean Reilly with the Louisiana Recovery Authority to talk about the rate of appropriations in his home state. Sean...

SEAN REILLY, LA. RECOVERY AUTHORITY: Yes, hello.

KAGAN: Thanks for being with us.

REILLY: Happy to be here.

KAGAN: Let's talk about -- because this topic has come up now that one of your own made, Rocky Vaccarella, made it all the way to the White House and met with President Bush. It's brought up the topic again of how much money has been going to the Gulf Coast and how much is actually getting into the hands of locals there.

REILLY: Well, first, you know, let me say that it's been a long, hot summer down here.

KAGAN: I would imagine.

REILLY: People are frustrated, and there's finger pointing going on, and what we need to do is step back, take a deep breath, and look at the facts.

The facts are that the American taxpayer has been very generous to the people on the Gulf Coast. Congress and the White House have allocated -- it hasn't yet been delivered -- has allocated about $110 billion for all five states that were hit so hard last year.

Now, specifically to Louisiana, when you talk about rebuilding money that's available to us, it's about $25 billion to $27 billion, because most of that $110 billion was for debris removal, MASH sheltering, all those FEMA trailers, rental assistance and debris and the like, but when you talk about really rebuilding, rebuilding the hopes and dreams and homes of people...

KAGAN: Uh-huh.

REILLY: ... it's really a fraction of that, and that money is on its way. We've been allocated $10.4 billion in CDBG funds. That's substantially going to be taken up in the Road Home Plan, to help homeowners get back in their houses. We've got $6 billion for levees. The Army Corps of Engineers is running that program. We've got a smattering of other smaller projects that are in the pipeline.

So while it is frustrating and not happening nearly as quickly as people would like, the money is on its way and New Orleans will get rebuilt.

KAGAN: And you know the frustration, because you're living it. You're a Louisiana resident yourself.

REILLY: Absolutely.

KAGAN: So let me just say I appreciate that.

When something comes up like this and President Bush and don Powell come out and say, hey, hundreds of billions of dollars -- the federal government has given their part; it's things like the state government of Louisiana that can't get their act together in getting money to the people.

REILLY: Well, again, I would take a little bit of issue with that. The state got hit by the worst natural disaster in our nation's history, and then a month later got hit by the third worst natural disaster in our nation's history in Hurricane Rita. It was quite a one-two punch, that we then had massive flooding because of failed federal levees.

So when you look at what happened to this state with 200,000 units of housing stock destroyed, a diaspora of several hundred thousand people still living away from home, massive dislocation, both demographically and populationwise, and the loss of huge swathes of wetlands, it's a daunting task.

KAGAN: Right. We certainly appreciate that. We spent a lot of time covering that over the last year.

What about when people bring up the comparison, well look at states like Mississippi?

REILLY: Well, you know, it's interesting to look at that. No. 1, Mississippi suffered, you know, give or take 25 percent of the damage of Louisiana. When you look at the Homeowner Road Home program, it appears that Mississippi checks will hit right about now for their homeowners. Our checks will hit next month. You know, I wouldn't call that a major difference in pace of getting money into the hands of homeowners. So I feel comfortable with where our homeowner program is and I feel we're right on par in Mississippi. Again, keep in mind we got hit by another storm a month later.

KAGAN: Right. I'm sure your day is filled with this, you talk to individual homeowners frustrated a year later. When you say things like, I'm comfortable with our pace and I think everything is going along like it should, what kind of things do you hear back that you can share with us on television?

REILLY: Well, I can tell you this. We've done a pilot program for the Road Home monies. We qualified 340 families last month. They were ecstatic. They understand the program. They know the money they're going to get, and their checks are coming soon. Yesterday I was at the opening of the New Orleans Housing Assistance Center for people to come in and qualify for their grants. People were extremely happy to be there. They were treated with respect, empathy and walked out feeling like the beginning of their recovery is at hand.

So, again, you know, it's -- when people ask me what about the pace of the recovery, I say compared to what? When has this happened to somebody else? When has this happened to another state? And, again, one point I want to make clear...

KAGAN: OK.

REILLY: ... the American taxpayer has been generous to the people of Louisiana and to the people of the Gulf coast, and I know that the American taxpayer hasn't forgotten us. As a matter of fact, I have seen polls on this that, assuming we spend the money we've gotten to date wisely, they will come forward with other aid, because they know we're going through a trying time.

KAGAN: Let me just ask you this real quickly, because you make the point of, you know, compared to what, never been through this before. Let's hope that no state in America ever has to go through this, but going forward, what would you say is the lesson learned?

REILLY: I think there's a couple of good lessons learned. No. 1, housing has a huge bottle neck in recovery, and, you know, I think when we were looking at this and analyzing this in the immediate aftermath of the storm, we were focused on levees, we were focused on protection. We were also focused on making sure that individuals who were evacuated and could not go home had a place.

But then when you look at going back and rebuilding the place, housing is a gating issue for workers. It's a gating issue for getting the recovery real traction, and I think that's been an issue in New Orleans.

The other thing I would add, and I think that Mississippi got this right. I think parts of Louisiana got this right. It's very important to go in very quickly with professional planners that can bring citizens together and talk about their shared future in light of a disaster.

We were able to do that in 22 of the 23 disaster-declared parishes, representing 46 percent of the damage across southern Louisiana. Unfortunately, New Orleans hasn't gone through that process yet. It's just getting under way. We're all frustrated that it didn't start sooner, but we are where we are. And again, I'm not going to point fingers. It needs to get done.

KAGAN: Right, and of course, the story of Steven (ph) trying to come up with a shared vision of what the future is supposed to look like is a whole other story and whole other challenge.

Sean, I want to thank you for your time.

REILLY: Happy to be here.

KAGAN: I know it's valuable, and I know you got important work to do. And we wish you well in getting that money into the hands of folks who really need it there in your home state of Louisiana.

REILLY: Thank you very much.

KAGAN: Thank you. Sean Reilly with the Louisiana Recovery Authority.

We're going to look at some international headlines ahead, including those journalists who have been kidnapped in Gaza, now seen in captivity for the first time. Their words are now being heard, and we're going to get a look at them as well.

And just when they think they're almost out, the Pentagon pulls them back in. U.S. marines who have already served might have to go back again.

That's ahead on CNN. You're watching the most trusted name in news.

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KAGAN: To the military now. The U.S. Marine Corps announced Tuesday that it will call back to active duty as many as 2,500 marines. Since the invasion of Iraq in 2003, several thousand army and marine troops who were in the Individual Ready Reserve -- that's what they call it, the IRR -- have been called back to active duty to fill critical wartime roles. Now the Marine Corps is doing to again.

More from CNN senior Pentagon correspondent Jamie McIntyre.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN PENTAGON CORRESPONDENT (voice-over): Up to 2,500 Marines will be called up in the coming months for service in Iraq and Afghanistan. They'll get five months' notice and then have to report for a tour of 12 to 18 months, including time for a refresher training. The troops would be part of a deployment scheduled for next spring and summer. But the Marine Corps says volunteers from the reserves will be taken before anyone is called back involuntarily.

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MCINTYRE: The individual ready reserve is made up of Marines who are fulfilling their contractual obligation to the military after leaving active duty, usually an additional four years. Marines who have been out for less than a year are exempt from the recall and Marines with recent or multiple combat tours will be the last called. The Marine Corps needs to fill high demand jobs, especially combat arms, military police, communications and intelligence specialists and engineers.

This is not the first time troops from the ready reserve have been called back. Back in 2003, some 2,000 Marines were activated at the start of the Iraq war. And since September 11, the Army has called come 5,000 troops back, of which some 2,200 are serving now.

(END VIDEOTAPE)

KAGAN: The Marine Corps says that active duty troops are reminded of their obligation before their tours end, and if being recalled to active duty creates a hardship, then marines can apply for deferment or exemption.

Journalists kidnapped in Gaza now seen in captivity for the first time, ahead on CNN, the most trusted name in news.

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