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American Morning

Interviews With FEMA Director Michael Brown, Tallahassee Mayor John Marks; Interview With Labor Secretary Elaine Chao

Aired September 06, 2004 - 07:31   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: Day is now breaking here in Melbourne on this Labor Day morning. It is Monday. Frances is gone from this part of Florida, but she's still a storm.
Welcome back, everyone. I'm Bill Hemmer live this morning in Melbourne today yet again. Tropical Storm Frances has the potential now to develop and strengthen yet again and going back to hurricane- size strength. Will that happen for the Panhandle? We're waiting to watch the radar and get the satellite images as Frances again moves to the northwestern part of Florida.

Over the weekend, though, this storm hung here, literally, for 30 hours, dropping constant rain. And those hurricane-force winds, too, just battering the east side of Florida.

What I think is so striking today as we wake up on this Monday morning, we're in Melbourne, Florida. You can go north here about 30 or 40 miles and still see damage. You go south here about 50 minutes, an hour and 15 minutes by car, even further than that and still see damage as well. That's how wide this storm was and how long she lingered off the coast.

There are other hurricanes that have been stronger in the past, but this hurricane, with those sustained winds for so long was able to do so much damage here up and down the coast.

Some are suggesting it could have been even worse. So, we'll get to that in a moment here with Michael Brown, the director of FEMA, and the mayor of Tallahassee is standing by.

Kelly Wallace is standing by up in New York City and with us again today.

Good morning -- Kelly. We're laboring together today, aren't we?

KELLY WALLACE, CNN ANCHOR: We are.

HEMMER: On this Labor Day.

WALLACE: Yes, we are. You're laboring harder, we think, working in the elements down south in Florida. But thanks again, Bill.

We have a lot more, though, to talk about on this day, including that story we brought to you live on Friday, the horrific tale of what happened at that school in southern Russia, whether it could happen again. We'll be joined by a professor from the U.S. Army War College. But right now, let's check in on the stories making news this hour with Betty Nguyen at the CNN center in Atlanta.

Good morning again -- Betty.

BETTY NGUYEN, CNN ANCHOR: Good morning, Kelly.

Turkish officials say kidnappers have released a driver taken hostage in Iraq over the weekend. Now, these images are just in to CNN. The release comes after the driver's employer compiled -- or complied with kidnappers' demands and promised to withdraw from Iraq.

Former President Bill Clinton is set to undergo heart bypass surgery. Surgeons will bypass as many as four clogged arteries, but they are waiting for medicine to make its way through Clinton's system before starting that procedure. Clinton is expected to do well in the operation because he is relatively young at 58, and he is healthy.

John Kerry is making personnel changes in his presidential campaign team. Senator Kerry has moved John Sasso (ph), a Boston operative, from the Democratic National Committee to a top spot in his campaign. Sasso (ph) ran the Michael Dukakis campaign. He'll be a senior adviser, traveling with Kerry through November 2.

And television's favorite winner is back on "Jeopardy" as the new season starts. Ken Jennings -- you remember him -- tries to extend his winning streak, which now stands at 38 games. He's already won more than $1.3 million. If the 30-year-old Jennings keeps winning, he'll keep coming back. A "Jeopardy" spokesman says there has been no talk of any cutoff point if that streak continues.

Now we want to send it back to Bill in Melbourne, Florida this morning -- Bill.

HEMMER: That guy needs a vacation.

NGUYEN: He wants to keep winning.

HEMMER: He has beaten just about everyone on that game. You're right. Betty, thanks for that.

Back here in Florida now, there is a massive effort here put out by the federal government to try and make sure that Floridians get the best help the fastest way possible. And FEMA has gone a long way to try and ensure that that is the case this time, especially coming off the heels of Charley three and a half weeks ago.

Michael Brown is the FEMA director. He's here in Florida. I talked to him a few moments ago.

(BEGIN VIDEOTAPE)

HEMMER: What's your priority today?

MICHAEL BROWN, FEMA DIRECTOR: Bill, it's to focus on life- sustaining and life-saving efforts. At 5:45 this morning, the first trucks started rolling down the interstate trying to get into these areas of devastation. We're bringing in food, water, all of the equipment, including the medical teams and the urban search-and-rescue teams to have a massive response to Frances.

HEMMER: And what part of Florida needs the most help this morning, Mr. Brown?

BROWN: Well, Governor Bush and I were able finally late yesterday afternoon to get into the West Palm Beach airport. So, this morning, he and I are going to start working our way back up along the coast and then back inland and back toward Tallahassee. Because even as you and I are speaking, the storm is still wreaking havoc on now the coastal areas on the Gulf side and up in the Panhandle of Florida.

So, we think that right now we're going to get into the inland areas and find devastation all across the state.

HEMMER: At this point -- and you said this at the end of last week -- 4,500 people are assigned on this job under your control, in fact, which is three times the amount of people assigned here for Charley about three and a half weeks ago. What are 4,500 people doing today, Mr. Brown?

BROWN: They are going to start focusing on distribution of food and ice. We're going to start working into the neighborhoods with our community response teams to find out where these folks are and get them registered with FEMA as quickly as possible. We'll have the rapid needs assessment teams going out into the communities to find out what needs to be done and reporting that back to the command center in Tallahassee and Atlanta, so that we can get those needs fulfilled as quickly as possible.

This storm has been going on for so long because she's been so strong and slow that we're trying to speed things up as rapidly as possible to give some immediate relief to these victims.

HEMMER: At this point, what are you able to assess? I know you've mentioned that you'll be going inland to try and figure out a better idea once the sun comes up as to what parts of the state needs it. But at this point, what can you say about Frances? What can you say about the damage? What can you say about the estimates at this point?

BROWN: Well, the estimates are just going to be through the roof, if there is a roof out there for it to go through, because there has just been so much water and wind associated with this storm and it's been moving so slowly that I'm very concerned about getting into the middle part of the state, into the rural areas where the flooding is going to be an incredible hazard. We're going to have a lot of structural damage that may not be readily visible to people as they go back in. We're going to have washouts and debris all over roads.

So, it's going to be a very time-consuming effort for us to get relief in there. It's going to be a very time-consuming effort to get power restored. But we have to do that as quickly as possible to give these folks some relief. (END VIDEOTAPE)

HEMMER: Michael Brown with the governor, Jeb Bush, over the weekend, too, and the two of them heading out yet again today.

"The New York Times" is reporting today that there's an estimate out there, just a staggering figure, too, $40 billion for the state of Florida between the storms of Charley and the storms of Frances. And now there's this other storm, Ivan, lurking out there far out in the Atlantic. Wow!

Let's go to Tallahassee right now. John Marks is the mayor up there.

Mr. Mayor, good morning to you. How are you getting ready for what could be Tropical Storm Frances coming your way? And then there is this possibility that it could strengthen above tropical-storm strength. Good morning there.

MAYOR JOHN MARKS, TALLAHASSEE, FLORIDA: Well, throughout the night -- good morning. Throughout the night we've had our first responders being prepared for this eventuality. And right now we have not felt the full force of now a tropical storm, and hopefully it stays Tropical Storm Frances at this point. But we've had our emergency operations center open throughout the night preparing for what could be the worst, I think, probably about mid-morning and early afternoon.

HEMMER: If there is a silver lining, Mr. Mayor, I believe that if you look at the speed of Frances and how slow this storm moved through the area, has that given you a better opportunity to get ready?

MARKS: It absolutely has. And if there is a silver lining, that would be it. But you've got to understand we have a lot of situations here in the city of Tallahassee. We're concerned about flooding, for instance. The slower this storm moves, obviously the more we're prone to flooding.

And the other thing is trees. We have a lot of trees in north Florida, unlike south Florida, And downed power lines really will be problem for us. And I've traveled throughout the city this morning a little bit, and I see a lot of debris. And I've seen a lot of debris that's down right now. But we expect a little bit worse obviously as this storm, this tropical storm proceeds towards the Tallahassee area.

HEMMER: Are evacuations a concern of yours, either in your city or south of there, closer to the Gulf Coast?

MARKS: No, not -- well, there may be some evacuations coming from the Gulf Coast into the Tallahassee area. But we're not evacuating the city at this point in time. As a matter of fact, we have a lot of evacuees in the city of Tallahassee that came up from south Florida earlier during the week. But we're not doing that. We don't have a curfew at this point in time. We don't think we need one at this point in time. But we're going to pay close attention to what may be necessary in terms of trying to address the issues related to the tropical storm that hopefully will spare us a little bit. But it looks like, you know, we're going to be hit pretty hard. And we want to make sure that we're prepare at all times here.

HEMMER: Hey, good luck, OK? And thanks for your time. John Marks is the mayor there in Tallahassee. Frances is dead set there very soon.

MARKS: Well, thank you very much.

HEMMER: Thank you. All right, you got it.

(WEATHER BREAK)

HEMMER: Also, we're on the barrier islands today. This is the area that was first evacuated at the end of last week. We've assessed some damage now with the sun coming up, and there is damage pretty much scattered throughout the area. We cannot see devastating damage that we saw with Charley, and that is a very good sign for the people of Florida waking up and going out yet again today in these daylight hours. We'll let you know what we have found here coming up next time here in Melbourne.

To Kelly again in New York City now -- Kelly.

WALLACE: Thanks, Bill.

And we have an update on a story we've been following throughout the morning, former President Bill Clinton. CNN has confirmer the former president is currently in surgery. We'll have reports throughout AMERICAN MORNING.

Still to come as well, Labor Day is the traditional start of the campaign season; fitting, considering jobs could be the biggest issue this election year. So, how is the latest unemployment report going over at the White House? We'll talk to Labor Secretary Elaine Chao. Stay with us right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

WALLACE: Jobs are the campaign theme on this Labor Day. President Bush will be in Missouri today. Yesterday in West Virginia, he attacked Senator John Kerry's plan to raise taxes on the richest Americans, saying it would hurt job creation. Iraq notwithstanding jobs and the economy may be the most important issues on the minds of voters from now until November.

On this day, dedicated to the American worker, we are very thrilled to be joined by Labor Secretary Elaine Chao.

Madam Secretary, thanks for being with us.

ELAINE CHAO, LABOR SECRETARY: Well, thanks for having me. WALLACE: First let's look at the numbers. The August report, 144,000 new jobs, unemployment dropping to 5.4 percent. What, from your interpretation, does that say about the state of the American economy?

CHAO: Well, I think the state of the economy is strong, and it's growing stronger. On last Friday, the unemployment rate dropped to 5.4 percent, which is lower than the average unemployment rate in the decade of the'1970s, 1980s and the 1990s.

WALLACE: But you know what some Democrats are saying. They are saying that President Bush could see a net job less of some 900,000 jobs by November; that he would be the first president since Herbert Hoover to preside over net job losses. What does that say, though? That's got to be a problem, though...

CHAO: Well, I...

WALLACE: ... for the Bush administration's record on job creation.

CHAO: Well, I have to say, that number has been dropping. And, you know, I think that's a ridiculous claim, because in Herbert Hoover's time the workforce was 38 million, and the unemployment rate was 25 percent. Right now our workforce number is 148 million people. And we have an unemployment rate of 5.4 percent.

This is the 12th straight month of job creation. And, in fact, last Friday when we announced the new unemployment numbers, we revised upward the number of jobs that had been created in June and July. So, we're on a good path. And more jobs, in fact, are being created.

WALLACE: A good path, more jobs, as you say. But you can't quarrel with that numbers that you might have 900,000 fewer jobs than you did before President Bush took office.

CHAO: Well, I think President Bush's policies has helped the economy overcome a number of devastating events since we took office. When the president came in, he inherited a recession. The economy was further devastated by the attacks of September 11. We then faced the reality of the corporate scandals, which were years in the making. And then we had the war on terror.

And it's really quite a mark of our economy that, again, this is the 12th straight month of job creation with over 1.7 million jobs being created in the last 12 months.

WALLACE: Something else interesting in the polls. Some say we spend too much time focusing on the polls. But President Bush, according to "Newsweek" and "TIME," is now leading Senator John Kerry when it comes to "who do you trust more to handle the economy?"

But here's something else. "TIME" magazine, 62 percent of Americans think the economic conditions are poor or only fair. And 57 percent say they don't think President Bush's tax cuts are helping them make ends meet. What do you make of those numbers? CHAO: Well, I think that's something that we're going to have to talk with the American people more. Because, indeed, President Bush's tax cuts, three rounds of them, have helped tremendously. They have jump-started our economy.

Also, this president has increased unemployment insurance three times. He has also signed into law the richest trade adjustment assistance program to help workers who are out of work. He has also requested $23 billion in training, worker training, and also $250 million for community colleges, because community colleges are great at job training.

So, we're very focused on creating the environment through which job creation can occur, but also taking care of those who are going through a vulnerable period in their lifetime.

So, the key is training, and we're very much focused on, again, helping workers get the training that they need, because opportunities are being created. The economy is expanding. But we want to make sure that workers have the right training to get the right skills to get good-paying jobs in high-growth industries.

WALLACE: Elaine Chao, labor secretary, we have to leave it there.

CHAO: Thank you.

WALLACE: We'll be talking to you in the weeks ahead. Jobs and the economy are key issues in campaign '04.

CHAO: Thank you.

WALLACE: Thanks so much.

For more now on Hurricane Frances, we go to Bill Hemmer back down south in Melbourne, Florida.

Hi again -- Bill.

HEMMER: Hey, Kelly, we found our first intrepid resident here. Say good morning to Sue Elliott (ph). She lives here; in fact, across the street.

You rode the storm out. How was it?

UNIDENTIFIED FEMALE: Yes, if my mother is listening, I wasn't here; I was Orlando. OK? But it was pretty intense. Lots of wind. Lots and lots of rain. Even when you thought it was over, it really wasn't. And most of it happened during the night.

HEMMER: How much damage to your place or up and down the coast here?

UNIDENTIFIED FEMALE: Over where I live, there's a lot of shingles off, a lot of the screens are blown out, all of those kinds of things. There is a whole lot of damage out here. HEMMER: Would you ride it out again?

UNIDENTIFIED FEMALE: Yes, I would.

HEMMER: You would?

UNIDENTIFIED FEMALE: Yes, I would.

HEMMER: Were you one of those who thought there never would be a direct hit on this part of Florida?

UNIDENTIFIED FEMALE: Yes. When I moved here I was told because of the space center, that's one of the reasons they choose for the space center to be here because of what was here or not here, or what the...

HEMMER: Hang on. Who told you that?

UNIDENTIFIED FEMALE: The news people.

HEMMER: Scourge! Good luck, Sue.

UNIDENTIFIED FEMALE: Thank you very much.

HEMMER: Thanks for talking, Sue Elliott.

UNIDENTIFIED FEMALE: Bye, mom.

HEMMER: You may have also seen a picture there of the hotel. This is the Holiday Inn where we were stationed at the end of last week. Extensive damage here. We'll let you know what we found here in a moment.

Also from Palm Beach, Florida, some shots yet again this morning already showing damage down there. We're back in a moment live in Melbourne, Florida, in a moment after this on this AMERICAN MORNING. It is Labor Day across the country.

(COMMERCIAL BREAK)

WALLACE: It is a day of national mourning in Russia as the search for bodies continues after last week's deadly siege at an elementary school. It happened in the southern part of the country in the town of Beslan near Chechnya.

This morning, many questions remain as to how such a thing could happen. And could it happen again?

Stephan Blank of the U.S. Army War College joins me now from Harrisburg, Pennsylvania.

Mr. Blank, thanks for joining us today.

STEPHAN BLANK, U.S. ARMY WAR COLLEGE: Thank you for having me.

WALLACE: There are many reports, such as that this sort of violent end on Friday to the siege was a mistake, that someone started shooting, the Russian authorities started reacting. Did the Russian forces overreact in this instance?

BLANK: Well, it's very difficult to say, because we still don't know who started shooting.

But what is very clear is that the Russian forces behaved in a manner that is unprofessional and clearly indicating a breakdown of command and control. Because they had negotiated an agreement to remove the bodies from the initial assault on Wednesday.

Four had been removed, and then somebody started shooting. Children started running out. Chechens started shooting at them. The Russians started shooting at the Chechens. And then it became pandemonium, and it started on the -- the attack on the school started without any plan whatsoever. And that's just unforgivable.

WALLACE: There is also the latest reports coming out that the Russian government is admitting it did not reveal the full extent of the crisis, the number of hostages inside that school. What do you make of that? And what does that mean in terms of Russian confidence, the confidence of the people in the Russian authorities?

BLANK: Well, we can see the confidence has already been diminished as a result of this. But this is a standard operating procedure for the Russian government to conceal or not to have accurate information as to what's going on. It's been proven time and time again in these kinds of situations that the Russian government either doesn't know or won't tell what's happening, or that nobody will tell the government.

Let me refer you back to the famous episode of the submarine which went down, and nobody would reveal the truth for weeks. This is the standard operating procedure of an unaccountable government, and it's something that has to change if Russia is going to be secure and progressive.

WALLACE: And we have had three major terrorist attacks in a span of a little more than a week. Can the Russian government handle what is likely to be more attacks, many people believe?

BLANK: Well, to be honest with you, I'm skeptical that they can. And it's not just the three attacks in the course of a couple of weeks. There were five attacks since June, and in all of them the Russians were caught by surprise.

I think their military performance shows a lack of confidence, as does their intelligence in police work. And what's more, Mr. Putin has all but admitted it in his speech to the nation. But this is the culmination of 20 years of failure to reform and to democratize those systems.

WALLACE: Stephan Blank with the U.S. Army War College joining us from Harrisburg, Pennsylvania. We have to leave it there. We will certainly be watching and staying in touch with you about his horrific, horrific story. Thanks again. BLANK: Thank you.

WALLACE: And more now on Hurricane Frances. Back to Bill in Melbourne, Florida -- Bill.

HEMMER: All right, Kelly, thanks for that.

We have reporters stationed up and down the east side of Florida; also reporters in the Panhandle. That's where Frances is headed next. We'll get you there live throughout the state here in a moment as our coverage continues right after this.

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Aired September 6, 2004 - 07:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Day is now breaking here in Melbourne on this Labor Day morning. It is Monday. Frances is gone from this part of Florida, but she's still a storm.
Welcome back, everyone. I'm Bill Hemmer live this morning in Melbourne today yet again. Tropical Storm Frances has the potential now to develop and strengthen yet again and going back to hurricane- size strength. Will that happen for the Panhandle? We're waiting to watch the radar and get the satellite images as Frances again moves to the northwestern part of Florida.

Over the weekend, though, this storm hung here, literally, for 30 hours, dropping constant rain. And those hurricane-force winds, too, just battering the east side of Florida.

What I think is so striking today as we wake up on this Monday morning, we're in Melbourne, Florida. You can go north here about 30 or 40 miles and still see damage. You go south here about 50 minutes, an hour and 15 minutes by car, even further than that and still see damage as well. That's how wide this storm was and how long she lingered off the coast.

There are other hurricanes that have been stronger in the past, but this hurricane, with those sustained winds for so long was able to do so much damage here up and down the coast.

Some are suggesting it could have been even worse. So, we'll get to that in a moment here with Michael Brown, the director of FEMA, and the mayor of Tallahassee is standing by.

Kelly Wallace is standing by up in New York City and with us again today.

Good morning -- Kelly. We're laboring together today, aren't we?

KELLY WALLACE, CNN ANCHOR: We are.

HEMMER: On this Labor Day.

WALLACE: Yes, we are. You're laboring harder, we think, working in the elements down south in Florida. But thanks again, Bill.

We have a lot more, though, to talk about on this day, including that story we brought to you live on Friday, the horrific tale of what happened at that school in southern Russia, whether it could happen again. We'll be joined by a professor from the U.S. Army War College. But right now, let's check in on the stories making news this hour with Betty Nguyen at the CNN center in Atlanta.

Good morning again -- Betty.

BETTY NGUYEN, CNN ANCHOR: Good morning, Kelly.

Turkish officials say kidnappers have released a driver taken hostage in Iraq over the weekend. Now, these images are just in to CNN. The release comes after the driver's employer compiled -- or complied with kidnappers' demands and promised to withdraw from Iraq.

Former President Bill Clinton is set to undergo heart bypass surgery. Surgeons will bypass as many as four clogged arteries, but they are waiting for medicine to make its way through Clinton's system before starting that procedure. Clinton is expected to do well in the operation because he is relatively young at 58, and he is healthy.

John Kerry is making personnel changes in his presidential campaign team. Senator Kerry has moved John Sasso (ph), a Boston operative, from the Democratic National Committee to a top spot in his campaign. Sasso (ph) ran the Michael Dukakis campaign. He'll be a senior adviser, traveling with Kerry through November 2.

And television's favorite winner is back on "Jeopardy" as the new season starts. Ken Jennings -- you remember him -- tries to extend his winning streak, which now stands at 38 games. He's already won more than $1.3 million. If the 30-year-old Jennings keeps winning, he'll keep coming back. A "Jeopardy" spokesman says there has been no talk of any cutoff point if that streak continues.

Now we want to send it back to Bill in Melbourne, Florida this morning -- Bill.

HEMMER: That guy needs a vacation.

NGUYEN: He wants to keep winning.

HEMMER: He has beaten just about everyone on that game. You're right. Betty, thanks for that.

Back here in Florida now, there is a massive effort here put out by the federal government to try and make sure that Floridians get the best help the fastest way possible. And FEMA has gone a long way to try and ensure that that is the case this time, especially coming off the heels of Charley three and a half weeks ago.

Michael Brown is the FEMA director. He's here in Florida. I talked to him a few moments ago.

(BEGIN VIDEOTAPE)

HEMMER: What's your priority today?

MICHAEL BROWN, FEMA DIRECTOR: Bill, it's to focus on life- sustaining and life-saving efforts. At 5:45 this morning, the first trucks started rolling down the interstate trying to get into these areas of devastation. We're bringing in food, water, all of the equipment, including the medical teams and the urban search-and-rescue teams to have a massive response to Frances.

HEMMER: And what part of Florida needs the most help this morning, Mr. Brown?

BROWN: Well, Governor Bush and I were able finally late yesterday afternoon to get into the West Palm Beach airport. So, this morning, he and I are going to start working our way back up along the coast and then back inland and back toward Tallahassee. Because even as you and I are speaking, the storm is still wreaking havoc on now the coastal areas on the Gulf side and up in the Panhandle of Florida.

So, we think that right now we're going to get into the inland areas and find devastation all across the state.

HEMMER: At this point -- and you said this at the end of last week -- 4,500 people are assigned on this job under your control, in fact, which is three times the amount of people assigned here for Charley about three and a half weeks ago. What are 4,500 people doing today, Mr. Brown?

BROWN: They are going to start focusing on distribution of food and ice. We're going to start working into the neighborhoods with our community response teams to find out where these folks are and get them registered with FEMA as quickly as possible. We'll have the rapid needs assessment teams going out into the communities to find out what needs to be done and reporting that back to the command center in Tallahassee and Atlanta, so that we can get those needs fulfilled as quickly as possible.

This storm has been going on for so long because she's been so strong and slow that we're trying to speed things up as rapidly as possible to give some immediate relief to these victims.

HEMMER: At this point, what are you able to assess? I know you've mentioned that you'll be going inland to try and figure out a better idea once the sun comes up as to what parts of the state needs it. But at this point, what can you say about Frances? What can you say about the damage? What can you say about the estimates at this point?

BROWN: Well, the estimates are just going to be through the roof, if there is a roof out there for it to go through, because there has just been so much water and wind associated with this storm and it's been moving so slowly that I'm very concerned about getting into the middle part of the state, into the rural areas where the flooding is going to be an incredible hazard. We're going to have a lot of structural damage that may not be readily visible to people as they go back in. We're going to have washouts and debris all over roads.

So, it's going to be a very time-consuming effort for us to get relief in there. It's going to be a very time-consuming effort to get power restored. But we have to do that as quickly as possible to give these folks some relief. (END VIDEOTAPE)

HEMMER: Michael Brown with the governor, Jeb Bush, over the weekend, too, and the two of them heading out yet again today.

"The New York Times" is reporting today that there's an estimate out there, just a staggering figure, too, $40 billion for the state of Florida between the storms of Charley and the storms of Frances. And now there's this other storm, Ivan, lurking out there far out in the Atlantic. Wow!

Let's go to Tallahassee right now. John Marks is the mayor up there.

Mr. Mayor, good morning to you. How are you getting ready for what could be Tropical Storm Frances coming your way? And then there is this possibility that it could strengthen above tropical-storm strength. Good morning there.

MAYOR JOHN MARKS, TALLAHASSEE, FLORIDA: Well, throughout the night -- good morning. Throughout the night we've had our first responders being prepared for this eventuality. And right now we have not felt the full force of now a tropical storm, and hopefully it stays Tropical Storm Frances at this point. But we've had our emergency operations center open throughout the night preparing for what could be the worst, I think, probably about mid-morning and early afternoon.

HEMMER: If there is a silver lining, Mr. Mayor, I believe that if you look at the speed of Frances and how slow this storm moved through the area, has that given you a better opportunity to get ready?

MARKS: It absolutely has. And if there is a silver lining, that would be it. But you've got to understand we have a lot of situations here in the city of Tallahassee. We're concerned about flooding, for instance. The slower this storm moves, obviously the more we're prone to flooding.

And the other thing is trees. We have a lot of trees in north Florida, unlike south Florida, And downed power lines really will be problem for us. And I've traveled throughout the city this morning a little bit, and I see a lot of debris. And I've seen a lot of debris that's down right now. But we expect a little bit worse obviously as this storm, this tropical storm proceeds towards the Tallahassee area.

HEMMER: Are evacuations a concern of yours, either in your city or south of there, closer to the Gulf Coast?

MARKS: No, not -- well, there may be some evacuations coming from the Gulf Coast into the Tallahassee area. But we're not evacuating the city at this point in time. As a matter of fact, we have a lot of evacuees in the city of Tallahassee that came up from south Florida earlier during the week. But we're not doing that. We don't have a curfew at this point in time. We don't think we need one at this point in time. But we're going to pay close attention to what may be necessary in terms of trying to address the issues related to the tropical storm that hopefully will spare us a little bit. But it looks like, you know, we're going to be hit pretty hard. And we want to make sure that we're prepare at all times here.

HEMMER: Hey, good luck, OK? And thanks for your time. John Marks is the mayor there in Tallahassee. Frances is dead set there very soon.

MARKS: Well, thank you very much.

HEMMER: Thank you. All right, you got it.

(WEATHER BREAK)

HEMMER: Also, we're on the barrier islands today. This is the area that was first evacuated at the end of last week. We've assessed some damage now with the sun coming up, and there is damage pretty much scattered throughout the area. We cannot see devastating damage that we saw with Charley, and that is a very good sign for the people of Florida waking up and going out yet again today in these daylight hours. We'll let you know what we have found here coming up next time here in Melbourne.

To Kelly again in New York City now -- Kelly.

WALLACE: Thanks, Bill.

And we have an update on a story we've been following throughout the morning, former President Bill Clinton. CNN has confirmer the former president is currently in surgery. We'll have reports throughout AMERICAN MORNING.

Still to come as well, Labor Day is the traditional start of the campaign season; fitting, considering jobs could be the biggest issue this election year. So, how is the latest unemployment report going over at the White House? We'll talk to Labor Secretary Elaine Chao. Stay with us right here on AMERICAN MORNING.

(COMMERCIAL BREAK)

WALLACE: Jobs are the campaign theme on this Labor Day. President Bush will be in Missouri today. Yesterday in West Virginia, he attacked Senator John Kerry's plan to raise taxes on the richest Americans, saying it would hurt job creation. Iraq notwithstanding jobs and the economy may be the most important issues on the minds of voters from now until November.

On this day, dedicated to the American worker, we are very thrilled to be joined by Labor Secretary Elaine Chao.

Madam Secretary, thanks for being with us.

ELAINE CHAO, LABOR SECRETARY: Well, thanks for having me. WALLACE: First let's look at the numbers. The August report, 144,000 new jobs, unemployment dropping to 5.4 percent. What, from your interpretation, does that say about the state of the American economy?

CHAO: Well, I think the state of the economy is strong, and it's growing stronger. On last Friday, the unemployment rate dropped to 5.4 percent, which is lower than the average unemployment rate in the decade of the'1970s, 1980s and the 1990s.

WALLACE: But you know what some Democrats are saying. They are saying that President Bush could see a net job less of some 900,000 jobs by November; that he would be the first president since Herbert Hoover to preside over net job losses. What does that say, though? That's got to be a problem, though...

CHAO: Well, I...

WALLACE: ... for the Bush administration's record on job creation.

CHAO: Well, I have to say, that number has been dropping. And, you know, I think that's a ridiculous claim, because in Herbert Hoover's time the workforce was 38 million, and the unemployment rate was 25 percent. Right now our workforce number is 148 million people. And we have an unemployment rate of 5.4 percent.

This is the 12th straight month of job creation. And, in fact, last Friday when we announced the new unemployment numbers, we revised upward the number of jobs that had been created in June and July. So, we're on a good path. And more jobs, in fact, are being created.

WALLACE: A good path, more jobs, as you say. But you can't quarrel with that numbers that you might have 900,000 fewer jobs than you did before President Bush took office.

CHAO: Well, I think President Bush's policies has helped the economy overcome a number of devastating events since we took office. When the president came in, he inherited a recession. The economy was further devastated by the attacks of September 11. We then faced the reality of the corporate scandals, which were years in the making. And then we had the war on terror.

And it's really quite a mark of our economy that, again, this is the 12th straight month of job creation with over 1.7 million jobs being created in the last 12 months.

WALLACE: Something else interesting in the polls. Some say we spend too much time focusing on the polls. But President Bush, according to "Newsweek" and "TIME," is now leading Senator John Kerry when it comes to "who do you trust more to handle the economy?"

But here's something else. "TIME" magazine, 62 percent of Americans think the economic conditions are poor or only fair. And 57 percent say they don't think President Bush's tax cuts are helping them make ends meet. What do you make of those numbers? CHAO: Well, I think that's something that we're going to have to talk with the American people more. Because, indeed, President Bush's tax cuts, three rounds of them, have helped tremendously. They have jump-started our economy.

Also, this president has increased unemployment insurance three times. He has also signed into law the richest trade adjustment assistance program to help workers who are out of work. He has also requested $23 billion in training, worker training, and also $250 million for community colleges, because community colleges are great at job training.

So, we're very focused on creating the environment through which job creation can occur, but also taking care of those who are going through a vulnerable period in their lifetime.

So, the key is training, and we're very much focused on, again, helping workers get the training that they need, because opportunities are being created. The economy is expanding. But we want to make sure that workers have the right training to get the right skills to get good-paying jobs in high-growth industries.

WALLACE: Elaine Chao, labor secretary, we have to leave it there.

CHAO: Thank you.

WALLACE: We'll be talking to you in the weeks ahead. Jobs and the economy are key issues in campaign '04.

CHAO: Thank you.

WALLACE: Thanks so much.

For more now on Hurricane Frances, we go to Bill Hemmer back down south in Melbourne, Florida.

Hi again -- Bill.

HEMMER: Hey, Kelly, we found our first intrepid resident here. Say good morning to Sue Elliott (ph). She lives here; in fact, across the street.

You rode the storm out. How was it?

UNIDENTIFIED FEMALE: Yes, if my mother is listening, I wasn't here; I was Orlando. OK? But it was pretty intense. Lots of wind. Lots and lots of rain. Even when you thought it was over, it really wasn't. And most of it happened during the night.

HEMMER: How much damage to your place or up and down the coast here?

UNIDENTIFIED FEMALE: Over where I live, there's a lot of shingles off, a lot of the screens are blown out, all of those kinds of things. There is a whole lot of damage out here. HEMMER: Would you ride it out again?

UNIDENTIFIED FEMALE: Yes, I would.

HEMMER: You would?

UNIDENTIFIED FEMALE: Yes, I would.

HEMMER: Were you one of those who thought there never would be a direct hit on this part of Florida?

UNIDENTIFIED FEMALE: Yes. When I moved here I was told because of the space center, that's one of the reasons they choose for the space center to be here because of what was here or not here, or what the...

HEMMER: Hang on. Who told you that?

UNIDENTIFIED FEMALE: The news people.

HEMMER: Scourge! Good luck, Sue.

UNIDENTIFIED FEMALE: Thank you very much.

HEMMER: Thanks for talking, Sue Elliott.

UNIDENTIFIED FEMALE: Bye, mom.

HEMMER: You may have also seen a picture there of the hotel. This is the Holiday Inn where we were stationed at the end of last week. Extensive damage here. We'll let you know what we found here in a moment.

Also from Palm Beach, Florida, some shots yet again this morning already showing damage down there. We're back in a moment live in Melbourne, Florida, in a moment after this on this AMERICAN MORNING. It is Labor Day across the country.

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WALLACE: It is a day of national mourning in Russia as the search for bodies continues after last week's deadly siege at an elementary school. It happened in the southern part of the country in the town of Beslan near Chechnya.

This morning, many questions remain as to how such a thing could happen. And could it happen again?

Stephan Blank of the U.S. Army War College joins me now from Harrisburg, Pennsylvania.

Mr. Blank, thanks for joining us today.

STEPHAN BLANK, U.S. ARMY WAR COLLEGE: Thank you for having me.

WALLACE: There are many reports, such as that this sort of violent end on Friday to the siege was a mistake, that someone started shooting, the Russian authorities started reacting. Did the Russian forces overreact in this instance?

BLANK: Well, it's very difficult to say, because we still don't know who started shooting.

But what is very clear is that the Russian forces behaved in a manner that is unprofessional and clearly indicating a breakdown of command and control. Because they had negotiated an agreement to remove the bodies from the initial assault on Wednesday.

Four had been removed, and then somebody started shooting. Children started running out. Chechens started shooting at them. The Russians started shooting at the Chechens. And then it became pandemonium, and it started on the -- the attack on the school started without any plan whatsoever. And that's just unforgivable.

WALLACE: There is also the latest reports coming out that the Russian government is admitting it did not reveal the full extent of the crisis, the number of hostages inside that school. What do you make of that? And what does that mean in terms of Russian confidence, the confidence of the people in the Russian authorities?

BLANK: Well, we can see the confidence has already been diminished as a result of this. But this is a standard operating procedure for the Russian government to conceal or not to have accurate information as to what's going on. It's been proven time and time again in these kinds of situations that the Russian government either doesn't know or won't tell what's happening, or that nobody will tell the government.

Let me refer you back to the famous episode of the submarine which went down, and nobody would reveal the truth for weeks. This is the standard operating procedure of an unaccountable government, and it's something that has to change if Russia is going to be secure and progressive.

WALLACE: And we have had three major terrorist attacks in a span of a little more than a week. Can the Russian government handle what is likely to be more attacks, many people believe?

BLANK: Well, to be honest with you, I'm skeptical that they can. And it's not just the three attacks in the course of a couple of weeks. There were five attacks since June, and in all of them the Russians were caught by surprise.

I think their military performance shows a lack of confidence, as does their intelligence in police work. And what's more, Mr. Putin has all but admitted it in his speech to the nation. But this is the culmination of 20 years of failure to reform and to democratize those systems.

WALLACE: Stephan Blank with the U.S. Army War College joining us from Harrisburg, Pennsylvania. We have to leave it there. We will certainly be watching and staying in touch with you about his horrific, horrific story. Thanks again. BLANK: Thank you.

WALLACE: And more now on Hurricane Frances. Back to Bill in Melbourne, Florida -- Bill.

HEMMER: All right, Kelly, thanks for that.

We have reporters stationed up and down the east side of Florida; also reporters in the Panhandle. That's where Frances is headed next. We'll get you there live throughout the state here in a moment as our coverage continues right after this.

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