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American Morning

North Korean Missile Threat Stirs World Leaders; New Jersey Casinos Shut Down

Aired July 05, 2006 - 09:30   ET

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

MILES O'BRIEN, CNN ANCHOR: The world's most powerful countries are heading to the United Nations Security Council right now to decide how to handle North Korea's missile launches. Seven of them now.
CNN's Richard Roth, live now from the United Nations with more on that.

The North Korean ambassador was -- we just had some pictures, I think, we just got in. Pak Ui Chun (ph), North Korean ambassador, had a hard time getting to work. Tell us about that.

RICHARD ROTH, CNN SR. UNITED NATIONS CORRESPONDENT: Well, hard in that everyone's going to have a hard time. It's a torrential downpour you might see behind me. We were waiting for the North Korean ambassador as he arrived at his country's offices a block from the U.N. Let's take a look at the scene. He definitely did not want to talk to any media members.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Any comment on the true intention of North Korea to launch -- test launch the missiles?

UNIDENTIFIED MALE: Can you tell us something? Can you tell us something, please, sir?

(END VIDEO CLIP)

ROTH: That's Ambassador Pak Ui Chun, using his umbrella not as a missile shield, just as a shield against the rain and inquiring minds of the media. That's on New York's east side. The Japanese have really been -- they're the country that formally requested this Security Council meeting that's coming up. They'll be no rain. There are some leaks inside the General Assembly Hall, Miles, but it should be a little calmer inside.

The North Korean delegation will not be here. It's not expected. They usually do not come to watch, even when their country is being discussed. You're used to a lot paperwork, Miles, at the U.N. It's still an interesting letter from the Japanese, just one line: "I have the honor to request an immediate meeting of the Security Council to consider the launch of ballistic missiles or unidentified flying vehicles by the Democratic People's Republic of Korea." A very simple letter, but it certainly quite different from what you usually see here -- Miles. O'BRIEN: The language of diplomacy can be interesting. It's also interesting to see -- Pak Ui Chun there, almost being treated like he's under indictment or something in the pursuit of a question. Is he likely to shed more light on North Koreans' intentions? I assume you've had a chance to speak with him over the years.

ROTH: Very unlikely at this time. I think yesterday he was quoted as saying, look, we're diplomats here, we don't know about military matters. So they are very isolated here, too. They don't necessarily return phone calls.

O'BRIEN: Interesting. They're -- presumably, they're getting some direct communication from Pyongyang, though, right?

ROTH: There's some, but they also have the same problem that others do in trying to figure out what's going on. You can't -- we can't assume that they know exactly what's happening in Pyongyang on a minute-to-minute basis.

O'BRIEN: Interesting. All right, Richard Roth at the United Nations. No one does it better there. Thank you -- Carol.

CAROL COSTELLO, CNN ANCHOR: The U.S. has been quick to say that North Korea's missiles are not a threat, but seven launches in 24 hours sends a pretty strong message.

National security correspondent David Ensor live in Washington for us this morning.

David, I guess the big question is, why now?

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Why now? Presumably, the North Koreans want attention now. The analysts that I talked to in the U.S. government have the working theory that North Korea sees all the attention that Iran is getting over its nuclear program. The package that it was offered with both incentives as well as disincentives. A light reader (ph) nuclear reactor is on offer, along with a lot of other goodies. North Korea would like some of that, too, please. That's the working theory that U.S. analysts have.

Now, North Korea's approach traditionally and again here appears to be to make threats, to show its military muscle. And that that may lead to concessions by -- by the opposite side. It could, of course, backfire, and in a sense, it already has.

The largest missile, the Taepodong-2, as you know, failed, and fell out of the sky very quickly into the Sea of Japan. This was supposed to be a long-range missile that might even be capable of reaching American soil, Alaska at a minimum. And it fell in the sea short of Japan. So some embarrassment, probably, there. You know the expression this is not rocket science? Well, this was rocket science, and the North Koreans don't seem to be too far along in the field -- Carol.

COSTELLO: Well, the shorter-range missiles and the medium-range missiles were successful, and North Korea has launched these types of missiles before, and everyone got flustered and they sat down for these talks and in the end, not much happened. Will this time be any different?

ENSOR: Hard to say. You know, I don't have a crystal ball on that one. Certainly the U.S. is hoping that China, Russia, South Korea, Japan, will be sufficiently irritated by this display of behavior. That they will become tougher about North Korea and support possible stronger sanctions, take a tougher line towards North Korea's need to sit down with the six-party talks, at which it should give up its nuclear weapons, take other steps to reassure its neighbors and get reassurances in return.

Whether we're headed in that direction just isn't clear. But North Korea is -- it would seem clear to the analysts I speak to in the U.S. government -- is trying to improve its bargaing position -- Carol.

COSTELLO: We'll see what happens. As they say, time will tell. David Ensor, live from Washington this morning.

O'BRIEN: So what could North Korea's leader, Kim Jong-Il, be thinking with this missile extravaganza? Mike Chinoy has some insight. He's a former senior correspondent for CNN in Asia, and he's now with the Pacific Council on International Policy. He joins us now from Los Angeles.

Mike, you've traveled to Korea as much as any Westerner. Have you ever -- you have met the senior leadership there as you've been there?

MIKE CHINOY, PACIFIC COUNCIL ON INTERNATIONAL POLICY: Well, I've never met Kim Jong-Il, though I've seen him at close range. I did meet his father, Kim Il-Sung, who ruled North Korea for nearly half a century. And what you come away from in your conversations with people like him, and also with slightly lower-ranking officials with whom I have spoken, is a real sense that the North Koreans feel themselves to be under siege. This was true in 1994 during the previous nuclear crisis when I did meet Kim Il-Sung three times. I think it's true now.

The North Koreans look around at the world the last few years, they see that all their communist, one-time comrades and allies have collapsed. They see the emergence of the United States as the sole superpower. And in the Bush administration, they see a United States that has labeled North Korea part of the axis of evil, that has adopted the doctrine of regime change.

They saw what happened to Saddam Hussein in Iraq, and they reached what, from their point is view, is not an unreasonable conclusion, which is Saddam Hussein didn't have a powerful nuclear capability or the kind of long-range missiles that the North Koreans have developed. And this they see as a kind of way of guaranteeing their own security and survival.

And along with this muscle flexing, they have consistently signaled that they might be willing to trade all this away for the right price in bilateral negotiations with the United States. But the U.S. isn't prepared to get into bilateral talks. And with this diplomatic process stalemated, the North Koreans have tried to shake up the pieces on the board with these missile tests.

O'BRIEN: Mike, tell us a little something here. The regime is so opaque to us, it's difficult for us to get a sense. But what is life like for everyday North Koreans and how much would they know about what is going right now, what we're talking about now?

CHINOY: Well, unless the official state-run North Korean media talks about this, almost everyone in North Korea will know nothing about it. The small group at the top, the elite, the ruling circles, they will certainly be fairly well-informed.

I've been surprised on my numerous visits there to discover just how well-informed the elite are. They do have access to outside information. We know that they watch CNN. They've told us that Kim Jong-Il himself watches CNN. But for ordinary people, they're completely cut off.

North Korea, for the ordinary person, is one of the most regimented societies on Earth. It really -- it's like a religious cult built around the personality cult of -- for Kim Jong-Il and Kim Il-Sung before him. Daily life is organized around a kind of devotion and worship to the Kim cult and the ideology. And it's really pretty grim for most North Koreans. And certainly in the last decade, as their economy's gone downhill, there have been terrible food shortages; hundreds of thousands, perhaps more, have died because of malnutrition and famine. So life is very, very grim.

But I think it is fair to point out that in the last year or two, the situation in North Korea has improved somewhat compared to what it was. And I think part of the North Koreans' motivation in firing all these missiles is to make it clear to the United States and to everyone else that the notion of North Korea as a failed state, as a state that is so weak internally that it can be pushed toward collapse is wrong, and this muscle flexing it, partly, I think, intended to demonstrate that.

O'BRIEN: Mike Chinoy, who is now with the Pacific Council on International Policy, formerly CNN Beijing bureau chief, thank you very much.

More on North Korea in just a moment. Andy will stop by and tell us how those missile tests are impacting world financial markets.

COSTELLO: And a budget crisis shuts down Atlantic City's casinos, leaving employees out of luck and out of work for the time being. A look at what comes next. That's just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Oh, they had to fold them in Atlantic City. All bets are off in New Jersey this morning. Casinos the latest victim in the state's budget battle. If you can believe it, no gambling right now in Atlantic City. Ooh, all that lost money.

That's where Mary Snow is. She's live with the latest on this developing story.

Good morning.

MARY SNOW, CNN CORRESPONDENT: Good morning, Carol.

And the sight behind me, something you don't often see, an empty room where all of these slot machines would normally be going, people buzzing around.

But before 8:00 a.m. this morning, as part of a state mandate, this casino -- excuse me -- and 11 others in Atlantic City closing down. This is because of a state budget showdown. The reason why casinos are affected is that inspectors have to be on the premises in order for these casinos to remain open. Those inspector are being furloughed, part of an overall government showdown, and that is why these casinos were ordered to shutdown. Many people, including one woman we ran into this morning in Brooklyn, who came here to gamble, said they didn't think it as going to come to this, that they thought it could be averted.

(BEGIN VIDEO CLIP)

CAROL SORANI, CASINO PATRON: Totally insane. How could you make the hard-working people here suffer. Some people are dependent on this income to pay their bills. And how long will this go on? What will happen to them? I'm here just on vacation. What about those people? Totally unfair.

(END VIDEO CLIP)

SNOW: Now just a short time ago, the governor of New Jersey, Jon Corzine, addressed the state legislature, asking lawmakers once again to come up with a budget. He said that, in fact, his hands are tied, that he did not have the authority to keep these casinos and other things, like state parks and beaches open.

And by legal requirement, everything had to shut down. So now it's really a waiting game. Atlantic City is waiting on lawmakers in Trenton -- Carol.

COSTELLO: Yes, maybe should have outlined just how much money they are losing by shutting these casinos down. It's a pretty amazing figure.

SNOW: It really is, and these casinos make millions each day. And a conservative estimate, they say, is $1.2 million in tax revenue each day that goes directly to the state. That is a conservative estimate of what they're losing each day these are closed.

COSTELLO: Wow. Mary Snow reporting live from Atlantic City. I know you're going to be there all day, and we'll get updates from you. Thank you.

(WEATHER REPORT)

O'BRIEN: ":CNN LIVE TODAY" is coming up next. Daryn Kagan here with a preview.

Hello, Daryn.

DARYN KAGAN, CNN ANCHOR: Hello, Miles. Good to see you back in New York.

O'BRIEN: Good to be back -- I think.

KAGAN: I bet it is.

You don't even know you are probably.

O'BRIEN: Yes.

KAGAN: We're staying on top of developments surrounding North Korea. The world weighing its options after North Korea's missile test. We expect live reaction from the White House and the State Department. Is the North's leader hungry for the spotlight? Are his Fourth of July fireworks just an attention-getter?

Also...

(BEGIN VIDEO CLIP)

ALINA CHO, CNN CORRESPONDENT: Do they hate the United States or do they fear the United States?

UNIDENTIFIED MALE: A bit of both, I think. They've got a reason to hate the Americans, because of the Korean War. It was a horrendous war.

(END VIDEO CLIP)

KAGAN: We're going inside the secretive society that is North Korea. Filmmakers show us what life is like in the communist nation.

And we check on Discovery in space. The astronauts inspect the shuttle today for possible damage.

Those stories, also the morning's breaking news, see when you tune in to "LIVE TODAY." Be with you at the top of the hour -- Miles.

have checked the shuttle for possible damage. And this morning breaking news, see it when you come in today. See you at the top of the hour -- Miles.

O'BRIEN: A few small pieces of foam that came off the external fuel tank on the way up. So they'll be checking that out very closely. Thank you, Daryn.

KAGAN: But we won't ask you to stay late this time.

O'BRIEN: Well, you know, I'm here for you any day you need me. KAGAN: I appreciate that.

O'BRIEN: OK, Andy Serwer is here. He's "Minding Your Business" as usual.

ANDY SERWER, "FORTUNE" MAGAZINE: Hello, Miles.

How are those North Korean missile tests impacting markets around the globe and in the U.S.?

And what about that Atlantic City casino shutdown? How is that affecting casino and gaming stocks? We'll tell you, coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BUSINESS HEADLINES)

(COMMERCIAL BREAK)

O'BRIEN: A little "A.M. Pop" time now. They're all that remain from the Chappelle show. Some 15 months after the comedian walked away in the midst of his -- of shooting his third season, this weekend, "Chappelle Show," without Chappelle, as Comedy Central presents the lost episodes.

You can get more now from CNN's Brooke Anderson.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Fifty-five million dollars.

DAVE CHAPPELLE, COMEDIAN: Man, like, it's on TV.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (voice-over): But it actually was true. He did receive $55-plus million.

CHAPPELLE: Sounds lucrative.

ANDERSON: In fact, these are clips from the Dave Chappelle show shot before he vanished for South Africa, leaving fans and co-workers feeling downright abandoned.

LOLA OGUNNAIKE, THE "NEW YORK TIMES": Comedy Central adored him. The money up front was amazing. There was not a problem here. And so, to the outside world, everyone's still left wondering -- how could Dave Chappelle walk away from such a golden opportunity?

CHAPPELLE: What's up, MTV? Come on in, you broke (BLEEPED).

ANDERSON: Then early this year, the comic began to resurface.

RAY RICHMOND, THE "HOLLYWOOD REPORTER": He did an hour with Oprah. He can't really describe it himself. He keeps talking in circles around why he did it.

OPRAH WINFREY, HOST, "THE OPRAH WINFREY SHOW": Why'd you walk away from $50 million?

CHAPPELLE: Well, I wasn't walking away from the money.

WINFREY: Yes.

CHAPPELLE: I was walking away from the circumstances that were coming with the newfound plateau.

OGUNNAIKE: He's done a number of interviews since leaving the show, and people still can't quite understand why he left.

UNIDENTIFIED MALE: So where's Dave at, man?

UNIDENTIFIED MALE: Africa.

UNIDENTIFIED MALE: Africa, Africa?

UNIDENTIFIED MALE: Yes.

ANDERSON: Four remaining episodes, taped before he took off, will premiere Sunday. "Chappelle's Show: The Lost Episodes," will be hosted by cast members Charlie Murphy and Donnell Rawlings.

OGUNNAIKE: Comedy Central really wanted to make this work. They reached out to Dave on several occasions. They postponed the show on several occasions. They were really trying to accommodate this guy.

ANDERSON: Chappelle did not respond to CNN request for comment about the airing episodes without his participation, but had this to say to a newspaper in March: "I feel like it's kind of a bully move," he said, adding, "That's just how I feel about it. If people don't watch it, then I'd be more than happy.

As for those left behind...

DONNELL RAWLINGS, "CHAPPELLE'S SHOW": I'd just like to say Dave, come back. I need the money. If you don't, I might have to talk like you and do the show anyway!

ANDERSON: The network tells CNN Chappelle has an open invitation to come back, but he hasn't called.

CHAPPELLE: Ah! Ah!

ANDERSON: Brooke Anderson, CNN, Los Angeles.

(END VIDEOTAPE)

O'BRIEN: That's all from here on this edition of AMERICAN MORNING. Daryn Kagan joining us now from CNN Center for the next couple of hours, "CNN LIVE TODAY."

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