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American Morning

9/11 Report Hearing; Terror Threat in Washington; Lady Liberty Reopens

Aired August 03, 2004 - 07:30   ET

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

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


BILL HEMMER, CNN ANCHOR: Welcome back, everyone. It's 7:30 here in New York City. A busy day again, isn't it?
HEIDI COLLINS, CNN ANCHOR: It is.

HEMMER: It's been that way for a while now.

In a moment here, we'll get back to these terror warnings in lower Manhattan. And right across the river, the Statue of Liberty is opening today, right across the harbor, we should say. In a few minutes we'll talk to Secretary of the Interior Gale Norton, who is on hand for that opening today. And we'll get her thoughts in a moment.

COLLINS: A lot of people are very excited to get back inside.

HEMMER: Yes, that's right.

COLLINS: It will be interesting.

All right. Also, Congress is getting back to work on the recommendations of the 9/11 Commission. President Bush, already taking up some of the central proposals. We will look at that.

HEMMER: Also, another update on Alex today, the first hurricane of the 2004 season. Chad is there. He made his way to the East Coast of the U.S., right off the coast of North Carolina, looking at where the storm is headed and also what kind of strength that storm is building. So stay tuned for Chad there in the Southeast.

Also, it's 7:31 back here in New York now. President Bush has announced his support for creating a new post, national intelligence director. Congress will hold hearings today on that, in fact, and other recommendations from that commission. Ed Henry watching that on Capitol Hill.

Ed - good morning there.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Bill.

These new threats are giving the 9/11 Commission new impetus to really prod Congress into going much further than President Bush went yesterday. In fact, the commissioners want Congress to pass major reforms.

(BEGIN VIDEOTAPE) HENRY (voice over): 9/11 commissioners believe President Bush took a strong first step, but they urged Congress to act quickly, especially in the wake of the latest warnings of terrorist attacks.

TIMOTHY ROEMER, 9/11 COMMISSION MEMBER: I can't think of a higher priority than implementing some of these reforms quickly and smartly and efficiently. Al Qaeda is not on a vacation schedule.

SEN. SUSAN COLLINS (R-ME), CHAIRWOMAN, GOVERNMENTAL AFFAIRS COMMITTEE: The specificity of the new threat underscores the urgency of the action.

HENRY: Senator Susan Collins is generally supportive of the push for a national director of intelligence, but at a hearing this morning, she'll take a close look at the call for a national counterterrorism center. It would tear down the wall between the FBI and CIA, which critics charged could lead to abuses.

COLLINS: This does raise important civil liberties and questions. We need to make sure we have safeguards in place.

HENRY: 9/11 commissioners start hitting the road today to rally support for their proposals. They want lawmakers to feel some pressure.

ROEMER: Well, I would strongly encourage the Congress to work in a bipartisan way to try to get a number of these recommendations -- many of which are not new -- implemented and protect this country. So that when they run for re-election in November, they can run with a good conscience, fulfilling their job description and job responsibilities to defend and protect this great country.

HENRY: Democratic presidential nominee John Kerry wants Congress called back for a special session to follow-up hearings with legislative action this month. The president disagrees.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Congress has been thinking about some of these ideas. They can think about them over August and come back and act on them in September.

(END VIDEOTAPE)

HENRY: Bill, it's going to be busy day on Capitol Hill. The House is going to hold its first hearing today on the 9/11 Commission's final report, the first of some 15 hearings coming in the House this month alone. More hearings in the Senate today and onward as well.

The bottom line here is that at the House hearing today, 9/11 commissioners will be testifying, along with 9/11 families. They are coming together to push Congress to really follow-up on this report -- Bill.

HEMMER: All right, Ed, thanks. Ed Henry on Capitol Hill -- Heidi. COLLINS: Police are searching every car and truck driving on the streets near the U.S. Capitol. The inspections are likely to cause considerable delays.

Jeanne Meserve is live from Capitol Hill this morning now.

Jeanne -- how do things look?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Not too bad where we are, but on other parts of Capitol Hill it is not a pretty picture.

The latest threat warning information doesn't even mention the U.S. Capitol, but out of an abundance of caution, the Capitol Police are instituting some new security measures.

One, the closure of a very heavily traffic street that runs between two Senate offices buildings, and the establishment of four 14-vehicle checkpoints all over Capitol Hill. Every vehicle, every car, every truck, every van will be visually inspected. If officers see anything unusual or of interest, they will pull that vehicle over and do a more thorough security check.

(BEGIN VIDEO CLIP)

TERRANCE GAINER, U.S. CAPITOL POLICE CHIEF: We are very concerned about the improvised vehicle-borne explosive devices that have been used around the world, and that are a constant source of ammunition and method of delivery for the terrorists. And we think this will help move the traffic, but reduce the risk to the visitors to this Capitol, to the people who work here, to the members of Congress.

(END VIDEO CLIP)

MESERVE: Now, this is not cheap. The Capitol Hill police chief estimates the cost at about $1.5 million for just two weeks, and he can't say how long this is going to continue. That depends, he says, on the threat situation.

D.C. officials are in a tizzy over this. There was a confrontation this morning between D.C. delegate Eleanor Holmes Norton and Capitol Hill Police Chief Terrance Gainer. Norton and others are upset about the message this sends and also about the impact on traffic.

As I mentioned that this security checkpoint that I'm near, not much traffic this morning, but I'm told that elsewhere on Capitol Hill things are very much snarled up. Motorists here in the city got late notice of this. It wasn't announced until last evening. The betting is that a lot of people approaching the Capitol this morning are going to be more worried about traffic than they are about terrorism.

Heidi -- back to you.

COLLINS: Yes, Jeanne, that's a good point. You know, yesterday here in New York City we had asked the police commissioner how New Yorkers taking it as far as the inconveniences. He said pretty well. What about people down there?

MESERVE: Well, you know, I haven't actually had an opportunity to talk to any of the motorists yet this morning. I'll tell you, though, that Washingtonians are quite accustomed to heavy security. This city has been a target ever since 9/11. These things happen occasionally. But as for this morning's reaction, ask me in an hour and I'll let you know.

COLLINS: All right, after that rush hour, that's for sure. Jeanne Meserve, thanks so much for that.

HEMMER: Back here in the New York area now, amid the new terror warnings, the Statue of Liberty reopens today after being closed for almost three years going back to 9/11. It is the last U.S. monument to reopen since the attacks.

The secretary of the interior Gale Norton is on hand today on Ellis Island, near the Liberty Island.

(BEGIN VIDEOTAPE)

HEMMER: Why did it take nearly three years to reopen -- partially reopen the statue?

GALE NORTON, SECRETARY OF THE INTERIOR: We had to look at all of the things to protect against terrorism, to be sure we had screening devices in place. And we did a lot of remodeling so that people will have a much more modern and enjoyable experience.

HEMMER: We are told, though, critics will say that you're only opening a portion of the statue beneath the feet of the statue, and that in itself is a victory for the terrorists. How do you react to that?

NORTON: It's not terrorism that has won. Safety has won. We used to have the experience of sending people up into the equivalent of a 12-story building with a narrow, winding staircase and only one exit. Today, people will be able to see up into the statue, to see the wonderful framework that was put in place by Mr. Eiffel, who designed the Eiffel Tower, and will be able to have an experience that is much more accessible for those in wheelchairs. And they'll have a guided tour by a ranger explaining what they're seeing. So, we think that this experience will be one that's very enjoyable for the visitors.

HEMMER: Thirty million dollars in donations as well. How is that money going to be used?

NORTON: We have had much renovation take place, the wonderful partnerships that have helped with this. We've also invested a substantial amount of federal money in upgrading and taking care of the facility.

And so, with all of that put together, we'll have a very secure experience for visitors, and one that is very enjoyable and much more educational than what they've had in the past.

HEMMER: Ellis Island is just off the southern tip of the island of Manhattan, right near the financial district. With the terror alerts going out over the past few days, is there increased security perhaps in the waterways or the area around the statue?

NORTON: What we have is a very high level of security. And people will be able to enjoy this experience in safety because of new screening going through on the boats and on through the island, as well as a high-level of security that we've had for protection of the statue in the past.

(END VIDEOTAPE)

HEMMER: Gale Norton, interior secretary. A live report next hour from Liberty Island. Kelly Wallace is down there, and we'll talk to Kelly then -- Heidi.

COLLINS: Just about 39 minutes past the hour now. Time for a look at some of today's other news with Daryn Kagan.

To the Middle East -- Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, good morning to you.

In the Middle East, an explosion along the Gaza-Egypt border. Palestinian sources say the blast killed at least three people. Israeli sources say that Palestinians detonated the explosion while Israeli forces were conducting an operation in that area.

Here in the U.S. there are new details in the Kobe Bryant sexual assault case. Transcripts released yesterday contained detailed information suggesting that the accuser had physical contact with another man after her encounter with Bryant. The documents also show that prosecutors in the case told the judge in private that if those transcripts were released it could doom their case.

The Food and Drug Administration has approved a new drug for AIDS. It combines two medications into a single tablet. The pill is designed to simplify treatment for patients in the U.S. and in poor countries that are grappling with the epidemic.

And from sports, the racing career of Kentucky Derby and Preakness winner Smarty Jones is over. The 3-year-old red chestnut has been retired to a farm in Kentucky. Vets say that he suffers chronic bruising in his hooves. Smarty Jones hasn't raced since his second-place finish in the Belmont Stakes, the only race he didn't win in nine career starts.

But, Heidi, don't feel too bad for Smarty Jones. He will be, as they say in the biz, standing stud.

COLLINS: Yes.

KAGAN: Yes.

COLLINS: At about $100,000, I understand.

Hey, Daryn, you know, Bill and I had the dubious distinction of being at that Belmont Stakes...

KAGAN: Oh!

COLLINS: ... and being there for that loss of one out of nine.

HEMMER: Smarty loser, Daryn.

COLLINS: I even have the shirt to prove it.

HEMMER: Yes.

KAGAN: Well, then let me suggest...

HEMMER: Yes?

KAGAN: Let me suggest that when he goes to stand stud, you guys don't show up.

COLLINS: We're probably not very good luck. Daryn, thanks so much for that.

KAGAN: Sure.

COLLINS: Hurricane Alex is churning in the Atlantic this morning near the coast of North Carolina. Chad Myers is standing by in Atlantic Beach to tell us more about that.

OK, you've abandoned the umbrella, but now you've got the hood on.

CHAD MYERS, CNN METEOROLOGIST: Yes. The umbrella is not working anymore. Gusts are now coming in, and they're not really sustained, but they just kind of come and they go. And it blows you around a little bit, and it's just going to take that umbrella and it's going to send it down to South Carolina here pretty soon. So, I just let it go. It's sitting there, but I just put it down.

Rain showers are now really picking up, squalls are picking up as we're starting to see the radar bring in the heavier browns, the greens, the reds here. The entire system is starting to roll in some oranges as well here. And the thunderstorms are just offshore. We haven't seen a lot of lightning, haven't heard a lot of thunder, but there you see the oranges, the reds, a little bit of red, and obviously the yellows moving onshore here.

Here is Morehead City. We're just a little bit south of Morehead city in one of the stronger bands. The eye wall or the eye itself is just south of our location...

COLLINS: All right, we're having some difficulty there with the satellite connection. I see Chad wondering...

HEMMER: That's what happens in hurricanes. COLLINS: Yes. It's going to be because of the weather. We will get more from Chad coming up in just a few minutes.

HEMMER: Let's get a break. Andy is back in a moment "Minding Your Business." He'll tell you about an oil industry record and whether or not you will feel it at the pump. Andy Serwer checks in after this.

COLLINS: And also ahead, former President Bill Clinton not ready for primetime? Live from New York, "Political Pop" straight ahead.

(COMMERCIAL BREAK)

COLLINS: Oil prices are bubbling over once again. Here's Andy Serwer now "Minding Your Business."

All right, crude oil is hitting an all-time high.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, $44.24 overnight, Heidi. And obviously it has a lot to do with the economy expanding, terror alerts. And you can see that record high we're hitting here.

OPEC President Purnomo Yusgiantoro yesterday in Jakarta saying if prices continue to rise, what can OPEC do? Prices are crazy! Geez, thanks a lot.

OPEC produces about 40 percent of the world's oil. The Saudis are pumping out about 9.5 million barrels a day right now, and they say they can add about another 500,000 barrels a day pretty easily. But that may not put a dent in what's going on at this point.

Let's talk about gasoline prices, because that's what really matters most to people here back at home. We're at $1.89, the second week in a row that prices have fallen.

Now, the interesting thing here is there's a lag between what happens to oil prices and what happens to gas prices. And if you saw that chart before, we had a dip a couple weeks ago. Gas prices responding to that dip. There you go. Thank you. So, you can see gasoline prices lagging, dipping there. But what does that say about the future? It would seem to suggest that gas prices are going to go back up.

Countervailing forces here, though. Oil prices going up. Demand for gasoline falling as we hit Labor Day. So maybe we'll hit an equilibrium. That's the best scenario. Otherwise, gas prices could continue to rise.

Quickly, the market. Futures are down this morning. We're going to be watching Callaway Golf. Their CEO has resigned, I think, unexpectedly. So we'll be checking that out.

COLLINS: Oh, no.

SERWER: Yes.

COLLINS: It's a huge crisis.

HEMMER: We'll be talking about Big Bertha.

COLLINS: Yes, Big Bertha.

HEMMER: OPEC name again?

SERWER: Purnomo Yusgiantoro is the president of OPEC, Bill.

HEMMER: Nice. Top that.

COLLINS: Impressive.

JACK CAFFERTY, CNN ANCHOR: I'm impressed.

HEMMER: Yes.

SERWER: It took me about five minutes to say it repeatedly.

CAFFERTY: I've got nothing to follow that. You know, that's pretty strong.

SERWER: Well.

CAFFERTY: Here's the deal on the "Question of the Day." Intelligence suggesting -- and you'll recall, this goes back a few weeks -- al Qaeda has said that it intends to disrupt the democratic process in this country by carrying out a large-scale attack before the November elections. President Bush warned yesterday we are a nation in danger, and both candidates are vowing to be tough in the war on terror.

The question has to do with how a terrorist attack might affect the outcome of the election.

Jason in Seattle says: "It greatly depends on the scale of the attack, although I pray this is only a hypothetical question." We all do, Jason. "John Kerry would certainly gain from a terrorist attack. An attack would show that President Bush was no more prepared for a future attack than he was for the ones on September 11."

Robert in Tacoma, Washington: "If we were attacked before the election, it would be a good excuse for Bush to put the elections on hold, and he could pull another trick out of his sleeve, like catching Osama bin Laden, for more brownie points with the American people."

Mel, Cornwall on Hudson, New York: "The situation with terrorist attacks normally results in a rally of the people, and it would be hoped the government, behind the president."

Carrie in Reston, Virginia: "A terrorist attack would encourage me to vote for Kerry. The Bush administration has had its chance to make our nation safer and has blown it. The war on terror cannot be won by military might alone. We need a president willing to deploy all of the forces in America's arsenal: our diplomacy, our intelligence system, our economic power and the appeal of our values and ideas."

And finally, Guy in Atlanta, Georgia: "A terrorist attack would affect the election, but it's impossible to predict which way it would affect the thinking of the voters. People would view it much differently if there were 200 deaths or 4,000."

Hope there are no deaths, hope it doesn't happen.

HEMMER: No question.

CAFFERTY: But, you know, the election is a wild card with all of this out there.

HEMMER: Ninety-three, 94 days and counting.

CAFFERTY: Yes.

HEMMER: Thank you, Jack.

In a moment here, green is the color of money; red, white and blue the colors of the flag. What is the color of power in 2004? "Political Pop," fit to be tied in a moment here after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Time for "Political Pop," have a little fun this morning.

On the left, Democratic strategist Kirsten Powers.

Good morning.

KIRSTEN POWERS, DEMOCRATIC STRATEGIST: Good morning.

HEMMER: Holding the middle, Andy Borowitz of BorowitzReport.com. And back with us by popular demand on the right, Jay Nordlinger, managing editor of "National Review."

Nice to see all three of you.

HEMMER: Jay, first topic. "Team America" is not Lance Armstrong's new racing organization. This is actually a new film due out two weeks before the election. What's the premise, by the way?

JAY NORDLINGER, "NATIONAL REVIEW": I think that "Team America," the Bush team is a little bit screwy, that they've overreacted. These are the "South Park" guys, aren't they?

HEMMER: And they're responding to the war, right?

NORDLINGER: They're very funny. And I think they're kind of gonzo libertarians. I'm not sure that the war on terrorism fits satire and hilarity. It's been a little less than three years since the 9/11 attacks. But people get relaxed and a little complacent. But Bush can't. And it's just a little bit more bad news out of Hollywood for the White House. HEMMER: The suggestion is that the White House is not happy about this. Do they have reason to be?

POWERS: I mean, I haven't seen the movie. But if it criticizes them, I'm not surprised they're not happy. They're -- you know, they seem to have a real issue with free speech. And every time someone criticizes them, they start screaming. And, you know, it's entertainment. It has a political element. The great thing about this country is we get to have free speech. We get to be critical of the president.

HEMMER: It sounds like Andy Borowitz.

ANDY BOROWITZ, BOROWITZREPORT.COM: The thing they're really worried about actually, I heard that Michael Moore is doing this remake of "Bambi," where Bambi's mom gets shot by Dick Cheney. And that's not going to be good for them.

NORDLINGER: And people (UNINTELLIGIBLE) I'm sure.

(CROSSTALK)

HEMMER: Exactly. Kirsten, "Saturday Night Live" wants Bill Clinton to host the show. Good idea?

BOROWITZ: That's going to happen.

POWERS: Right, yes. Yes. Well, I think that the problem is the 90-minute format is just going to be too limiting to him.

HEMMER: He might sell more books, Jay.

NORDLINGER: Well, I was reminded of something. In one of Clinton's exit interviews, you know, these interviews he gave shortly before leaving office, he said, I have demystified this job. The president is not some guy on a pedestal. The president is a human being with clay feet. So, I've demystified this job. I think a little of that is maybe not what we want, a little too much of that.

BOROWITZ: I was going to say, I heard after the show he wants to be on "The Bachelor." I heard that. So...

HEMMER: Is that in his opening monologue? Oh, my gosh. I showed up at the wrong place!

Let's talk about something you know nothing about, Andy.

BOROWITZ: Fashion.

HEMMER: Ties.

BOROWITZ: Ties, I never wear them.

HEMMER: Well, you're cool on fashion. It's just ties. You never wear one.

BOROWITZ: I never wear them.

HEMMER: "L.A. Times" says there are colors of blue that denote wimpiness.

BOROWITZ: Right.

HEMMER: Maybe the robin egg blue or something like that.

BOROWITZ: Right.

HEMMER: We saw a lot of petitions -- politicians, rather, wearing that color recently.

BOROWITZ: Well, apparently, Bush wears the dark blue power tie, which is weird, because he's, you know, from the red states. And then Kerry is wearing like the red tie, and he's from the blue states.

Another way to tell them apart actually is Bush's tie is a clip- on, but that's -- apparently just a tie is a very important thing.

HEMMER: You mentioned red. And we saw the Democrats in Boston. John Edwards had a red tie. John Kerry had a red tie. Teresa Heinz Kerry came out in what? It was the Heinz ketchup red, they referred to it in Boston.

NORDLINGER: Oh.

POWERS: He loves (UNINTELLIGIBLE).

BOROWITZ: That zipper dress, don't get me started. I'm still thinking about that dress.

POWERS: Yes.

NORDLINGER: I actually have a theory on this, believe it or not. Pundits are supposed to talk about everything. I think if you're perceived as not strong enough, you have to wear red to beef you up. If you're perceived as strong or maybe even too strong, you need blue to reassure. But what do I know?

HEMMER: Is there something to that, Kirsten?

POWERS: Well, I think it's time for the little duckie tie. That's what I'm pushing for.

BOROWITZ: Oh, great.

HEMMER: Look, I'm trying to bring back peach with my shirt today.

Teresa Heinz Kerry at a rally last night in Milwaukee, she was responding to hecklers essentially, saying four more years, four more years. This is what she said in response to those people at that rally Milwaukee, clearly favorites of George Bush.

(BEGIN VIDEO CLIP) TERESA HEINZ KERRY, WIFE OF SEN. JOHN KERRY: I would like, therefore, to tell you about a friend of mine, who I think I know somewhat, and they want four more years of hell.

(END VIDEO CLIP)

HEMMER: Well, I've got to the say, you know, last week, she said "Shove it." And then this week she said "hell." I really dig the direction she's going. It's only August.

HEMMER: How does this sell in places like Milwaukee and Missouri? Are people drawn to that attitude, or are they pushed away from it?

POWERS: Well, I mean, she's clearly talking to supporters. And I think that she -- yes, it does resonate, unfortunately, that this is how people feel. They feel that the country is going completely in the wrong direction. And she's being a little hyperbolic, but the reality is it resonates with people.

NORDLINGER: Ted Kase (ph) said at the Democratic Convention, the only thing we have to fear is four more years of George Bush, not al Qaeda, not North Korea. It's kind of a theme here. And as a Republican, I say to these guys, keep going. I don't think it will blow over.

POWERS: I love it when Republicans try to pretend they don't understand rhetorical flourish. You know, that you actually can say something and not mean that al Qaeda is not a threat.

HEMMER: Well, apparently she started her own chant.

POWERS: Yes, exactly.

HEMMER: She said, "three more months, three more months." So, let's leave it there, huh?

POWERS: Yes.

HEMMER: Anything else, Mr. Tie?

BOROWITZ: I have nothing else to say.

HEMMER: You don't?

BOROWITZ: I am just so pleased with the level of discourse in the campaign so far. Very encouraging.

HEMMER: Good to see all of you. You got it. See you soon.

Here's Heidi again -- Heidi.

COLLINS: Still to come this morning, the challenge ahead for Congress: How to turn recommendation of the 9/11 panel into a working plan to save American lives? We'll talk to one of the lawmakers charged with that task here on AMERICAN MORNING. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired August 3, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Welcome back, everyone. It's 7:30 here in New York City. A busy day again, isn't it?
HEIDI COLLINS, CNN ANCHOR: It is.

HEMMER: It's been that way for a while now.

In a moment here, we'll get back to these terror warnings in lower Manhattan. And right across the river, the Statue of Liberty is opening today, right across the harbor, we should say. In a few minutes we'll talk to Secretary of the Interior Gale Norton, who is on hand for that opening today. And we'll get her thoughts in a moment.

COLLINS: A lot of people are very excited to get back inside.

HEMMER: Yes, that's right.

COLLINS: It will be interesting.

All right. Also, Congress is getting back to work on the recommendations of the 9/11 Commission. President Bush, already taking up some of the central proposals. We will look at that.

HEMMER: Also, another update on Alex today, the first hurricane of the 2004 season. Chad is there. He made his way to the East Coast of the U.S., right off the coast of North Carolina, looking at where the storm is headed and also what kind of strength that storm is building. So stay tuned for Chad there in the Southeast.

Also, it's 7:31 back here in New York now. President Bush has announced his support for creating a new post, national intelligence director. Congress will hold hearings today on that, in fact, and other recommendations from that commission. Ed Henry watching that on Capitol Hill.

Ed - good morning there.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Good morning, Bill.

These new threats are giving the 9/11 Commission new impetus to really prod Congress into going much further than President Bush went yesterday. In fact, the commissioners want Congress to pass major reforms.

(BEGIN VIDEOTAPE) HENRY (voice over): 9/11 commissioners believe President Bush took a strong first step, but they urged Congress to act quickly, especially in the wake of the latest warnings of terrorist attacks.

TIMOTHY ROEMER, 9/11 COMMISSION MEMBER: I can't think of a higher priority than implementing some of these reforms quickly and smartly and efficiently. Al Qaeda is not on a vacation schedule.

SEN. SUSAN COLLINS (R-ME), CHAIRWOMAN, GOVERNMENTAL AFFAIRS COMMITTEE: The specificity of the new threat underscores the urgency of the action.

HENRY: Senator Susan Collins is generally supportive of the push for a national director of intelligence, but at a hearing this morning, she'll take a close look at the call for a national counterterrorism center. It would tear down the wall between the FBI and CIA, which critics charged could lead to abuses.

COLLINS: This does raise important civil liberties and questions. We need to make sure we have safeguards in place.

HENRY: 9/11 commissioners start hitting the road today to rally support for their proposals. They want lawmakers to feel some pressure.

ROEMER: Well, I would strongly encourage the Congress to work in a bipartisan way to try to get a number of these recommendations -- many of which are not new -- implemented and protect this country. So that when they run for re-election in November, they can run with a good conscience, fulfilling their job description and job responsibilities to defend and protect this great country.

HENRY: Democratic presidential nominee John Kerry wants Congress called back for a special session to follow-up hearings with legislative action this month. The president disagrees.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Congress has been thinking about some of these ideas. They can think about them over August and come back and act on them in September.

(END VIDEOTAPE)

HENRY: Bill, it's going to be busy day on Capitol Hill. The House is going to hold its first hearing today on the 9/11 Commission's final report, the first of some 15 hearings coming in the House this month alone. More hearings in the Senate today and onward as well.

The bottom line here is that at the House hearing today, 9/11 commissioners will be testifying, along with 9/11 families. They are coming together to push Congress to really follow-up on this report -- Bill.

HEMMER: All right, Ed, thanks. Ed Henry on Capitol Hill -- Heidi. COLLINS: Police are searching every car and truck driving on the streets near the U.S. Capitol. The inspections are likely to cause considerable delays.

Jeanne Meserve is live from Capitol Hill this morning now.

Jeanne -- how do things look?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Not too bad where we are, but on other parts of Capitol Hill it is not a pretty picture.

The latest threat warning information doesn't even mention the U.S. Capitol, but out of an abundance of caution, the Capitol Police are instituting some new security measures.

One, the closure of a very heavily traffic street that runs between two Senate offices buildings, and the establishment of four 14-vehicle checkpoints all over Capitol Hill. Every vehicle, every car, every truck, every van will be visually inspected. If officers see anything unusual or of interest, they will pull that vehicle over and do a more thorough security check.

(BEGIN VIDEO CLIP)

TERRANCE GAINER, U.S. CAPITOL POLICE CHIEF: We are very concerned about the improvised vehicle-borne explosive devices that have been used around the world, and that are a constant source of ammunition and method of delivery for the terrorists. And we think this will help move the traffic, but reduce the risk to the visitors to this Capitol, to the people who work here, to the members of Congress.

(END VIDEO CLIP)

MESERVE: Now, this is not cheap. The Capitol Hill police chief estimates the cost at about $1.5 million for just two weeks, and he can't say how long this is going to continue. That depends, he says, on the threat situation.

D.C. officials are in a tizzy over this. There was a confrontation this morning between D.C. delegate Eleanor Holmes Norton and Capitol Hill Police Chief Terrance Gainer. Norton and others are upset about the message this sends and also about the impact on traffic.

As I mentioned that this security checkpoint that I'm near, not much traffic this morning, but I'm told that elsewhere on Capitol Hill things are very much snarled up. Motorists here in the city got late notice of this. It wasn't announced until last evening. The betting is that a lot of people approaching the Capitol this morning are going to be more worried about traffic than they are about terrorism.

Heidi -- back to you.

COLLINS: Yes, Jeanne, that's a good point. You know, yesterday here in New York City we had asked the police commissioner how New Yorkers taking it as far as the inconveniences. He said pretty well. What about people down there?

MESERVE: Well, you know, I haven't actually had an opportunity to talk to any of the motorists yet this morning. I'll tell you, though, that Washingtonians are quite accustomed to heavy security. This city has been a target ever since 9/11. These things happen occasionally. But as for this morning's reaction, ask me in an hour and I'll let you know.

COLLINS: All right, after that rush hour, that's for sure. Jeanne Meserve, thanks so much for that.

HEMMER: Back here in the New York area now, amid the new terror warnings, the Statue of Liberty reopens today after being closed for almost three years going back to 9/11. It is the last U.S. monument to reopen since the attacks.

The secretary of the interior Gale Norton is on hand today on Ellis Island, near the Liberty Island.

(BEGIN VIDEOTAPE)

HEMMER: Why did it take nearly three years to reopen -- partially reopen the statue?

GALE NORTON, SECRETARY OF THE INTERIOR: We had to look at all of the things to protect against terrorism, to be sure we had screening devices in place. And we did a lot of remodeling so that people will have a much more modern and enjoyable experience.

HEMMER: We are told, though, critics will say that you're only opening a portion of the statue beneath the feet of the statue, and that in itself is a victory for the terrorists. How do you react to that?

NORTON: It's not terrorism that has won. Safety has won. We used to have the experience of sending people up into the equivalent of a 12-story building with a narrow, winding staircase and only one exit. Today, people will be able to see up into the statue, to see the wonderful framework that was put in place by Mr. Eiffel, who designed the Eiffel Tower, and will be able to have an experience that is much more accessible for those in wheelchairs. And they'll have a guided tour by a ranger explaining what they're seeing. So, we think that this experience will be one that's very enjoyable for the visitors.

HEMMER: Thirty million dollars in donations as well. How is that money going to be used?

NORTON: We have had much renovation take place, the wonderful partnerships that have helped with this. We've also invested a substantial amount of federal money in upgrading and taking care of the facility.

And so, with all of that put together, we'll have a very secure experience for visitors, and one that is very enjoyable and much more educational than what they've had in the past.

HEMMER: Ellis Island is just off the southern tip of the island of Manhattan, right near the financial district. With the terror alerts going out over the past few days, is there increased security perhaps in the waterways or the area around the statue?

NORTON: What we have is a very high level of security. And people will be able to enjoy this experience in safety because of new screening going through on the boats and on through the island, as well as a high-level of security that we've had for protection of the statue in the past.

(END VIDEOTAPE)

HEMMER: Gale Norton, interior secretary. A live report next hour from Liberty Island. Kelly Wallace is down there, and we'll talk to Kelly then -- Heidi.

COLLINS: Just about 39 minutes past the hour now. Time for a look at some of today's other news with Daryn Kagan.

To the Middle East -- Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, good morning to you.

In the Middle East, an explosion along the Gaza-Egypt border. Palestinian sources say the blast killed at least three people. Israeli sources say that Palestinians detonated the explosion while Israeli forces were conducting an operation in that area.

Here in the U.S. there are new details in the Kobe Bryant sexual assault case. Transcripts released yesterday contained detailed information suggesting that the accuser had physical contact with another man after her encounter with Bryant. The documents also show that prosecutors in the case told the judge in private that if those transcripts were released it could doom their case.

The Food and Drug Administration has approved a new drug for AIDS. It combines two medications into a single tablet. The pill is designed to simplify treatment for patients in the U.S. and in poor countries that are grappling with the epidemic.

And from sports, the racing career of Kentucky Derby and Preakness winner Smarty Jones is over. The 3-year-old red chestnut has been retired to a farm in Kentucky. Vets say that he suffers chronic bruising in his hooves. Smarty Jones hasn't raced since his second-place finish in the Belmont Stakes, the only race he didn't win in nine career starts.

But, Heidi, don't feel too bad for Smarty Jones. He will be, as they say in the biz, standing stud.

COLLINS: Yes.

KAGAN: Yes.

COLLINS: At about $100,000, I understand.

Hey, Daryn, you know, Bill and I had the dubious distinction of being at that Belmont Stakes...

KAGAN: Oh!

COLLINS: ... and being there for that loss of one out of nine.

HEMMER: Smarty loser, Daryn.

COLLINS: I even have the shirt to prove it.

HEMMER: Yes.

KAGAN: Well, then let me suggest...

HEMMER: Yes?

KAGAN: Let me suggest that when he goes to stand stud, you guys don't show up.

COLLINS: We're probably not very good luck. Daryn, thanks so much for that.

KAGAN: Sure.

COLLINS: Hurricane Alex is churning in the Atlantic this morning near the coast of North Carolina. Chad Myers is standing by in Atlantic Beach to tell us more about that.

OK, you've abandoned the umbrella, but now you've got the hood on.

CHAD MYERS, CNN METEOROLOGIST: Yes. The umbrella is not working anymore. Gusts are now coming in, and they're not really sustained, but they just kind of come and they go. And it blows you around a little bit, and it's just going to take that umbrella and it's going to send it down to South Carolina here pretty soon. So, I just let it go. It's sitting there, but I just put it down.

Rain showers are now really picking up, squalls are picking up as we're starting to see the radar bring in the heavier browns, the greens, the reds here. The entire system is starting to roll in some oranges as well here. And the thunderstorms are just offshore. We haven't seen a lot of lightning, haven't heard a lot of thunder, but there you see the oranges, the reds, a little bit of red, and obviously the yellows moving onshore here.

Here is Morehead City. We're just a little bit south of Morehead city in one of the stronger bands. The eye wall or the eye itself is just south of our location...

COLLINS: All right, we're having some difficulty there with the satellite connection. I see Chad wondering...

HEMMER: That's what happens in hurricanes. COLLINS: Yes. It's going to be because of the weather. We will get more from Chad coming up in just a few minutes.

HEMMER: Let's get a break. Andy is back in a moment "Minding Your Business." He'll tell you about an oil industry record and whether or not you will feel it at the pump. Andy Serwer checks in after this.

COLLINS: And also ahead, former President Bill Clinton not ready for primetime? Live from New York, "Political Pop" straight ahead.

(COMMERCIAL BREAK)

COLLINS: Oil prices are bubbling over once again. Here's Andy Serwer now "Minding Your Business."

All right, crude oil is hitting an all-time high.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, $44.24 overnight, Heidi. And obviously it has a lot to do with the economy expanding, terror alerts. And you can see that record high we're hitting here.

OPEC President Purnomo Yusgiantoro yesterday in Jakarta saying if prices continue to rise, what can OPEC do? Prices are crazy! Geez, thanks a lot.

OPEC produces about 40 percent of the world's oil. The Saudis are pumping out about 9.5 million barrels a day right now, and they say they can add about another 500,000 barrels a day pretty easily. But that may not put a dent in what's going on at this point.

Let's talk about gasoline prices, because that's what really matters most to people here back at home. We're at $1.89, the second week in a row that prices have fallen.

Now, the interesting thing here is there's a lag between what happens to oil prices and what happens to gas prices. And if you saw that chart before, we had a dip a couple weeks ago. Gas prices responding to that dip. There you go. Thank you. So, you can see gasoline prices lagging, dipping there. But what does that say about the future? It would seem to suggest that gas prices are going to go back up.

Countervailing forces here, though. Oil prices going up. Demand for gasoline falling as we hit Labor Day. So maybe we'll hit an equilibrium. That's the best scenario. Otherwise, gas prices could continue to rise.

Quickly, the market. Futures are down this morning. We're going to be watching Callaway Golf. Their CEO has resigned, I think, unexpectedly. So we'll be checking that out.

COLLINS: Oh, no.

SERWER: Yes.

COLLINS: It's a huge crisis.

HEMMER: We'll be talking about Big Bertha.

COLLINS: Yes, Big Bertha.

HEMMER: OPEC name again?

SERWER: Purnomo Yusgiantoro is the president of OPEC, Bill.

HEMMER: Nice. Top that.

COLLINS: Impressive.

JACK CAFFERTY, CNN ANCHOR: I'm impressed.

HEMMER: Yes.

SERWER: It took me about five minutes to say it repeatedly.

CAFFERTY: I've got nothing to follow that. You know, that's pretty strong.

SERWER: Well.

CAFFERTY: Here's the deal on the "Question of the Day." Intelligence suggesting -- and you'll recall, this goes back a few weeks -- al Qaeda has said that it intends to disrupt the democratic process in this country by carrying out a large-scale attack before the November elections. President Bush warned yesterday we are a nation in danger, and both candidates are vowing to be tough in the war on terror.

The question has to do with how a terrorist attack might affect the outcome of the election.

Jason in Seattle says: "It greatly depends on the scale of the attack, although I pray this is only a hypothetical question." We all do, Jason. "John Kerry would certainly gain from a terrorist attack. An attack would show that President Bush was no more prepared for a future attack than he was for the ones on September 11."

Robert in Tacoma, Washington: "If we were attacked before the election, it would be a good excuse for Bush to put the elections on hold, and he could pull another trick out of his sleeve, like catching Osama bin Laden, for more brownie points with the American people."

Mel, Cornwall on Hudson, New York: "The situation with terrorist attacks normally results in a rally of the people, and it would be hoped the government, behind the president."

Carrie in Reston, Virginia: "A terrorist attack would encourage me to vote for Kerry. The Bush administration has had its chance to make our nation safer and has blown it. The war on terror cannot be won by military might alone. We need a president willing to deploy all of the forces in America's arsenal: our diplomacy, our intelligence system, our economic power and the appeal of our values and ideas."

And finally, Guy in Atlanta, Georgia: "A terrorist attack would affect the election, but it's impossible to predict which way it would affect the thinking of the voters. People would view it much differently if there were 200 deaths or 4,000."

Hope there are no deaths, hope it doesn't happen.

HEMMER: No question.

CAFFERTY: But, you know, the election is a wild card with all of this out there.

HEMMER: Ninety-three, 94 days and counting.

CAFFERTY: Yes.

HEMMER: Thank you, Jack.

In a moment here, green is the color of money; red, white and blue the colors of the flag. What is the color of power in 2004? "Political Pop," fit to be tied in a moment here after this.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. Time for "Political Pop," have a little fun this morning.

On the left, Democratic strategist Kirsten Powers.

Good morning.

KIRSTEN POWERS, DEMOCRATIC STRATEGIST: Good morning.

HEMMER: Holding the middle, Andy Borowitz of BorowitzReport.com. And back with us by popular demand on the right, Jay Nordlinger, managing editor of "National Review."

Nice to see all three of you.

HEMMER: Jay, first topic. "Team America" is not Lance Armstrong's new racing organization. This is actually a new film due out two weeks before the election. What's the premise, by the way?

JAY NORDLINGER, "NATIONAL REVIEW": I think that "Team America," the Bush team is a little bit screwy, that they've overreacted. These are the "South Park" guys, aren't they?

HEMMER: And they're responding to the war, right?

NORDLINGER: They're very funny. And I think they're kind of gonzo libertarians. I'm not sure that the war on terrorism fits satire and hilarity. It's been a little less than three years since the 9/11 attacks. But people get relaxed and a little complacent. But Bush can't. And it's just a little bit more bad news out of Hollywood for the White House. HEMMER: The suggestion is that the White House is not happy about this. Do they have reason to be?

POWERS: I mean, I haven't seen the movie. But if it criticizes them, I'm not surprised they're not happy. They're -- you know, they seem to have a real issue with free speech. And every time someone criticizes them, they start screaming. And, you know, it's entertainment. It has a political element. The great thing about this country is we get to have free speech. We get to be critical of the president.

HEMMER: It sounds like Andy Borowitz.

ANDY BOROWITZ, BOROWITZREPORT.COM: The thing they're really worried about actually, I heard that Michael Moore is doing this remake of "Bambi," where Bambi's mom gets shot by Dick Cheney. And that's not going to be good for them.

NORDLINGER: And people (UNINTELLIGIBLE) I'm sure.

(CROSSTALK)

HEMMER: Exactly. Kirsten, "Saturday Night Live" wants Bill Clinton to host the show. Good idea?

BOROWITZ: That's going to happen.

POWERS: Right, yes. Yes. Well, I think that the problem is the 90-minute format is just going to be too limiting to him.

HEMMER: He might sell more books, Jay.

NORDLINGER: Well, I was reminded of something. In one of Clinton's exit interviews, you know, these interviews he gave shortly before leaving office, he said, I have demystified this job. The president is not some guy on a pedestal. The president is a human being with clay feet. So, I've demystified this job. I think a little of that is maybe not what we want, a little too much of that.

BOROWITZ: I was going to say, I heard after the show he wants to be on "The Bachelor." I heard that. So...

HEMMER: Is that in his opening monologue? Oh, my gosh. I showed up at the wrong place!

Let's talk about something you know nothing about, Andy.

BOROWITZ: Fashion.

HEMMER: Ties.

BOROWITZ: Ties, I never wear them.

HEMMER: Well, you're cool on fashion. It's just ties. You never wear one.

BOROWITZ: I never wear them.

HEMMER: "L.A. Times" says there are colors of blue that denote wimpiness.

BOROWITZ: Right.

HEMMER: Maybe the robin egg blue or something like that.

BOROWITZ: Right.

HEMMER: We saw a lot of petitions -- politicians, rather, wearing that color recently.

BOROWITZ: Well, apparently, Bush wears the dark blue power tie, which is weird, because he's, you know, from the red states. And then Kerry is wearing like the red tie, and he's from the blue states.

Another way to tell them apart actually is Bush's tie is a clip- on, but that's -- apparently just a tie is a very important thing.

HEMMER: You mentioned red. And we saw the Democrats in Boston. John Edwards had a red tie. John Kerry had a red tie. Teresa Heinz Kerry came out in what? It was the Heinz ketchup red, they referred to it in Boston.

NORDLINGER: Oh.

POWERS: He loves (UNINTELLIGIBLE).

BOROWITZ: That zipper dress, don't get me started. I'm still thinking about that dress.

POWERS: Yes.

NORDLINGER: I actually have a theory on this, believe it or not. Pundits are supposed to talk about everything. I think if you're perceived as not strong enough, you have to wear red to beef you up. If you're perceived as strong or maybe even too strong, you need blue to reassure. But what do I know?

HEMMER: Is there something to that, Kirsten?

POWERS: Well, I think it's time for the little duckie tie. That's what I'm pushing for.

BOROWITZ: Oh, great.

HEMMER: Look, I'm trying to bring back peach with my shirt today.

Teresa Heinz Kerry at a rally last night in Milwaukee, she was responding to hecklers essentially, saying four more years, four more years. This is what she said in response to those people at that rally Milwaukee, clearly favorites of George Bush.

(BEGIN VIDEO CLIP) TERESA HEINZ KERRY, WIFE OF SEN. JOHN KERRY: I would like, therefore, to tell you about a friend of mine, who I think I know somewhat, and they want four more years of hell.

(END VIDEO CLIP)

HEMMER: Well, I've got to the say, you know, last week, she said "Shove it." And then this week she said "hell." I really dig the direction she's going. It's only August.

HEMMER: How does this sell in places like Milwaukee and Missouri? Are people drawn to that attitude, or are they pushed away from it?

POWERS: Well, I mean, she's clearly talking to supporters. And I think that she -- yes, it does resonate, unfortunately, that this is how people feel. They feel that the country is going completely in the wrong direction. And she's being a little hyperbolic, but the reality is it resonates with people.

NORDLINGER: Ted Kase (ph) said at the Democratic Convention, the only thing we have to fear is four more years of George Bush, not al Qaeda, not North Korea. It's kind of a theme here. And as a Republican, I say to these guys, keep going. I don't think it will blow over.

POWERS: I love it when Republicans try to pretend they don't understand rhetorical flourish. You know, that you actually can say something and not mean that al Qaeda is not a threat.

HEMMER: Well, apparently she started her own chant.

POWERS: Yes, exactly.

HEMMER: She said, "three more months, three more months." So, let's leave it there, huh?

POWERS: Yes.

HEMMER: Anything else, Mr. Tie?

BOROWITZ: I have nothing else to say.

HEMMER: You don't?

BOROWITZ: I am just so pleased with the level of discourse in the campaign so far. Very encouraging.

HEMMER: Good to see all of you. You got it. See you soon.

Here's Heidi again -- Heidi.

COLLINS: Still to come this morning, the challenge ahead for Congress: How to turn recommendation of the 9/11 panel into a working plan to save American lives? We'll talk to one of the lawmakers charged with that task here on AMERICAN MORNING. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.