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American Morning
New York Tunnel Bomb Plot; London Bombings Anniversary; North Korea Threat Talks
Aired July 07, 2006 - 06:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Happening this morning, "The New York Daily News" is reporting an alleged plot to bomb Manhattan's Holland Tunnel and flood the city. The newspaper says U.S. officials think terrorists wanted to drown the financial district just like New Orleans after Hurricane Katrina.
London is remembering the victims of last year's subway and bus bombings one year ago today. Suicide bombers attacked the city's transit system. Fifty-two people killed.
And a top U.S. diplomat is in Beijing today trying to build a united front against North Korea's missile tests. Undersecretary of State Christopher Hill later heads to South Korea.
MILES O'BRIEN, CNN ANCHOR: CNN "Security Watch" for you now.
A report in "The New York Daily News" this morning citing sources at the FBI that they've been working on a terror plot that was targeting the Holland Tunnel. The goal, to bomb the Holland Tunnel, flood the tunnel, and, according to the terrorists, or to the FBI in interviewing the terrorists, flood the financial district, lower Manhattan.
Let's just orient you very quickly and tell you a little bit about what we're talking about.
This is the lower part of Manhattan right here. And there are a total of 12 bridges and tunnels that go from Manhattan either into the surrounding boroughs or to New Jersey. In this case, the Holland Tunnel, which comes across here, is about a mile and a half in length and goes into New Jersey. It was built in 1927 and carries a tremendous amount of traffic on each and every day.
Officials are a little bit skeptical. This is -- this is the lower Manhattan area. And this is very near the World Trade Center site. The Holland -- the Holland tunnel comes in.
Officials are skeptical of the plot because the simple fact of the matter is, the financial district, lower Manhattan, is above the level of the Hudson River, which the Holland Tunnel goes through. So, to punch a hole in the Holland tunnel and subsequently flood the financial district sort of defies the laws of gravity, so to speak.
But nevertheless, that plot has been thwarted. Apparently one is under arrest in Beirut, according to "The Daily News." And we have some experts coming in to talk a little more about this effort and this investigation in just a little bit -- Carol.
COSTELLO: One year ago today, London and all of England rocked by four suicide bombs, three in the underground and another on one of the city's famous double-decker buses. Fifty-two people were killed that day. And now one of London's top constables says another attack is still very possible.
CNN Chief International Correspondent Christiane Amanpour is live at the Kings Cross station in London.
Good morning, Christiane.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Good morning, Carol.
And, in fact, the bombing at the Kings Cross underground was the worst one in terms of casualties of the 52 deaths last year. There were the most here at this station.
Today is a day of somber reflection. It's not a day of -- an overly fearful day. It's not a day that people are overly gloomy, but they're very realistic about what happened.
Today, the mayor of London and other officials have come to lay flowers at this station and at the three others that were the targets of these terror attacks last year. And also at Tavistock Square, where about half an hour after the simultaneous underground explosions, a bomb ripped open a bus, and there were 13 casualties there.
There are going to be candlelight services in about half an hour, two minutes of silence around the nation. The royal family commemorating these events up in Scotland. And at Regents Park, not far from here, a massive floral tribute to the victims. People who want to do something to remember what happened are asked to go there to put flowers there in the park, and then there will be the names of all the 52 victims read out.
Just the day before this anniversary, just yesterday, a tape was released which was quite chilling, showing one of the suicide bombers, obviously now dead. A tape that was taken and has been released very cunningly exactly a year after these explosions, warning that this was, in fact, they say, they have threatened just the beginning -- Carol.
COSTELLO: Christiane Amanpour live in London this morning.
America's top negotiator on North Korea has just left a meeting with the Chinese leader and he's now on his way to South Korea. Washington wants Beijing to take a stronger stand to stop North Korea from more aggressive military action.
Beijing Bureau Chief Jaime FlorCruz live on the phone right now.
What went down? JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF: Well, Carol, Secretary Hill just finished his press conference where we are -- we attended at the Beijing International Airport. He did -- after finishing a full day of talks with the Chinese officials, he says the U.S. and China are in good shape to work together and find a way out of the situation.
He says it's very clear that the Chinese themselves find it not in their interest to see the North Koreans test their missiles, and that they discussed the way ahead, which is, they think -- they agreed that the only way is for North Korea to come back to the six-party talks. He says no one -- no sides are offering North Korea any concessions. And the Chinese have been in touch with North Korea and will continue to be in touch with them in the coming days -- Carol.
COSTELLO: So, Jaime -- Jaime, for now, discussions will be ongoing, but no more sanctions will be issued?
FLORCRUZ: He was asked that question precisely. He said the discussions are in New York, in the Security Council in New York, as to whether economic sanctions will be imposed as the U.S. and Japan hope. But he indicated that that was not -- that he was not prepared to talk about it here.
The Chinese president, when he talked with President Bush last night, hinted that the Chinese are not willing to go that far in imposing economic sanctions. He called for restraint and calm, and he called on all sides not to do anything that will only worsen the situation -- Carol.
COSTELLO: Jaime FlorCruz reporting live from Beijing this morning.
President Bush, by the way, will address the situation in North Korea later this morning. He's due to hold a major news conference at a stop in the Midwest -- Chicago, to be specific.
CNN's Ed Henry has more details for you.
(BEGIN VIDEOTAPE)
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: The president meets the press this morning in Chicago, rolling out a new strategy by holding a news conference with local and national media, as part of what will become a semiregular road show. White House aides officially say the goal is to give the president a chance to learn what's on the minds of average Americans outside the Washington beltway. But unofficially, it's also an effort to try to lift the president's sagging poll numbers.
One hot topic, of course, will be North Korea, as the president continues to dial up other world leaders. The latest being Australian Prime Minister John Howard, who pledged his support in pressing sanctions against the rogue nation.
But the president hit roadblocks in his telephone calls to the leaders of Russia and China. But he'll get another crack at his counterparts next week at the G8 summit in St. Petersburg, where North Korea will be at the top of the agenda.
Ed henry, CNN, the White House.
(END VIDEOTAPE)
COSTELLO: And, of course, CNN will have live coverage of the president's address from Chicago's Museum of Science and Industry. The president due to take the microphone around 11:00 a.m. Eastern.
O'BRIEN: Happening in America, in Atlantic City it is music to gamblers' ears, the sound of slot machines filling the casinos once again. Governor Jon Corzine and lawmakers finally reached a budget deal to put an end to that week-long government shutdown in the Garden State. Lawmakers could vote on it by tonight. The shutdown has put more than 80,000 people out of work.
A former Army private charged with raping an Iraqi woman, then killing her family, says he is innocent. Twenty-one-year-old Steven Green's lawyer entering the not guilty plea in a Kentucky courtroom yesterday. Green honorably discharged from the Army in March due to a personality disorder.
That Kentucky coal mine where an explosion killed five in May cited for safety warnings just days before the blast. The "Career- Journal of Louisville" says federal inspectors gave the mine four citations for significant and substantial infractions. The cause of the explosion undetermined.
The man who spent 22 years in a New York prison for rape and robbery he didn't commit free this morning. Allen Newton (ph) was released yesterday after newly tested DNA evidence exonerated him of the crimes from 1984. Newton (ph) expressed compassion for the rape victim shortly after his release. And no anger, I might add.
A Georgia man is facing charges for tampering with his children's food in an attempt to collect money. Investigators say 40-year-old Allen Cunningham (ph) tried to poison their soup and then sue the manufacturer, Campbell's, for damages. If convicted, Cunningham (ph) could face the rest of his life in prison.
Oh, you remember this one. A Coca-Cola employee who allegedly tried to sell confidential secrets to Pepsi -- we told you about that yesterday -- free on bond this morning. Investigators say 41-year-old -- the 41-year-old employee rifled through corporate files, stuffed the company documents in her bag. Two others also arrested in the scheme.
Let's check the forecast now. Chad Myers has the secret recipe for a forecast for us.
Hello.
CHAD MYERS, CNN METEOROLOGIST: And that is cold front.
(WEATHER REPORT)
MYERS: Great running weather, Miles. I guess that will be good for you.
O'BRIEN: Yes. How did you know I was running so much? Did I tell you that?
MYERS: Yes.
O'BRIEN: Yes, I'm trying to train for the marathon. But I've had a -- I had a little shuttle setback last week.
MYERS: Oh, right. Of course.
O'BRIEN: And now I'm back in. It's good. I'll be able to run...
MYERS: They didn't let you run around Cape Canaveral?
O'BRIEN: Well, they'd probably arrest me. Don't go that way, Miles. No, don't go that way either. Stay on the compound.
COSTELLO: Thank you, Chad.
MYERS: You're welcome, Carol.
COSTELLO: Still to come, increasing violence in the Middle East this morning. Israeli forces renewing airstrikes and pushing its tanks farther into Gaza. More on that story ahead.
O'BRIEN: But first, Larry King with an exclusive. The president and the first lady talking about a wide range of things, including North Korea, the polls, turning 60, and if he had to do it all over again in Iraq.
I bet you know the answer on that one, but you still want to hear, don't you?
Stay with us for more AMERICAN MORNING.
(COMMERCIAL BREAK)
COSTELLO: As President Bush celebrated his 60th birthday, he invited CNN's Larry King to the White House for an exclusive interview. Larry sat down with the president and the first lady in the historic Blue Room to talk about his presidency and the many challenges, past, present and future.
(BEGIN VIDEOTAPE)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I look at life as a series of opportunities to make this world a better place.
COSTELLO (voice over): President George W. Bush on dealing with the myriad of vital issues at home and abroad. He told Larry King during a wide-ranging interview that North Korea's missile tests present an opportunity to apply global pressure on Pyongyang.
BUSH: I'm confident the best way to solve the problem is to have the Chinese and South Koreans and the Japanese and Russians sitting side by side with us saying to Kim Jong-il, it's not in your interest to isolate yourself from the world. It's not in your interest to keep the defying demands, reasonable demands of the world, and there's a better way for you to move forward.
COSTELLO: On Iraq, perhaps the defining issue of his presidency, Mr. Bush said he'd make the decision to invade again.
BUSH: We removed a tyrant who was a weapon -- was an enemy of the United States who harbored terrorists and who had the capacity at the very minimum to make weapons of mass destruction. And he was a -- he was true threat. And yes, I would have done the same thing.
COSTELLO: The president and first lady addressed his weak approval ratings, saying they're aware, but not affected.
BUSH: The president that chases the opinion poll is the president that will have failed policy, in my judgment. I like to tell people I would rather be -- when history looks back, I'd rather be judged as solving problems and being correct rather than being popular.
LAURA BUSH, FIRST LADY: We've been in politics a very long time. We've seen somebody else we loved a lot in this job, George's dad. And we know what it's like. And we know what to expect.
COSTELLO: And the president expects the GOP to keep control of Congress in the midterm elections.
G. BUSH: You know why? Because we're right on winning this war on terror and we've got a good economic record. People are working under the -- under the leadership of this administration and the Congress.
COSTELLO: As for turning 60, the president said he's surprised by how good he feels.
G. BUSH: I can remember when I was a kid looking at people 60, I said, "Man, there goes an ancient person." And -- but I feel great.
COSTELLO: But still, America's commander in chief is consumed by the thought of eliminating the terrorist threat.
G. BUSH: Every day I think about this.
LARRY KING, HOST: Of getting him?
G. BUSH: Well, every day I think about al Qaeda. Every day I think about protecting this country. I mean every day. It is the calling of our time to win this war on terror.
(END VIDEOTAPE)
COSTELLO: And, of course, you can catch "LARRY KING LIVE" every night at 9:00 p.m. Eastern right here on CNN.
O'BRIEN: Still to come on AMERICAN MORNING, a major cell phone company accused of deceiving its customers now facing a federal lawsuit. Andy in with that one.
And, of course, this developing story we're following out of New York City. Word of a terror plot to blow up the Holland Tunnel.
We'll bring you the latest.
Stay with us.
(COMMERCIAL BREAK)
O'BRIEN: A CNN "Security Watch" for you this morning.
"The New York Daily News" reporting this morning of a plot to blow up the Holland Tunnel. Terrorists apparently trying to blow it up and perhaps, according to this plot related in "The New York Daily News" account, tried to flood lower Manhattan, the financial district.
CNN's Kelli Arena has been on the phone with her sources and is hearing a slightly different tale.
Kelli, what do you know?
KELLI ARENA, CNN JUSTICE CORRESPONDENT: Good morning, Miles.
Well, sources tell us that there was, indeed, a plot to blow up tunnels in the New York City area. My sources say that the Holland Tunnel was not specifically mentioned.
There -- there is a person in custody in Beirut, Amir Andalusi (ph). The sources also say that the FBI is trying to search for others, but no one is believed to be in the United States.
What's not clear, Miles, is exactly how far along this plot got, whether any explosives or materials were actually bought, or if this was just in the talking stage. And it's also not clear at this point exactly how many people are believed to have been involved in this plot.
At this point, FBI headquarters is not commenting. I am continuing to badger them. Hopefully we'll get a clearer picture of this in the coming hour.
O'BRIEN: All right. Kelli, we don't know anything about how they found out about this alleged plot?
ARENA: I don't know. As you know, "The Daily News" reported that they picked this up on chat rooms. The sources that I spoke to were not exactly clear on whether that is accurate or if there were other -- other informants involved.
We do know analysts scan the Internet continually for information like that and have been able to gather a great deal of intelligence, believe it or not, from vehicles such as the Internet. So when I get a clearer picture of that, I'll get back to you.
O'BRIEN: All right. Get back to your badgering.
Kelli Arena will be on the phone checking with her sources.
Thank you very much for checking in.
COSTELLO: I don't think there's any better than Kelli at badgering.
O'BRIEN: No. No one does it better. No one does it better.
COSTELLO: Yes.
O'BRIEN: Andy Serwer is here "Minding Your Business."
And, what's going on this morning?
ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": Good morning, Miles.
Which cell phone company stands accused of coercing and bulldozing its customers?
And when is a half-billion-dollar fine tax deductible? We're talking corporate welfare here, Miles.
O'BRIEN: All right. Andy, we look forward to hearing that.
We'll take you to the land of cowboys and open spaces as well, the great red state of Wyoming. This is Bush country, folks. And we'll talk to folks there and find out why so many are big supporters of the president.
Stay with us.
(COMMERCIAL BREAK)
O'BRIEN: The cell phone business is a rough business, isn't it, Andy Serwer?
SERWER: It is, especially if you're a customer of Cingular Wireless, or so says a lawsuit filed in federal court in Seattle.
This concerns Cingular's purchase of AT&T Wireless in October of 2004. And the lawsuit says that Cingular did not treat these new customers very well at all.
In fact, it didn't maintain AT&T's wireless network, or so the lawyers say. It made these customers sign new contracts or pay a $175 termination fee. It made them pay a fee just to switch over to be part of the new company. And there were 20 million AT&T customers at the time of that merger.
There's two different networks. There's the TDMA technology network and the GSM. Of course, we were also switching over to the GSM, the Cingular people are. And they seek, these lawyers, to have a class-action lawsuit.
O'BRIEN: So these are AT&T CDMA customers who didn't switch...
SERWER: TDMA.
O'BRIEN: Oh, not CDMA.
SERWER: Yes, TDMA.
O'BRIEN: Oh, OK.
SERWER: It's a little different.
O'BRIEN: A little different.
SERWER: Yes.
O'BRIEN: Who didn't switch over to GSM, and obviously Cingular wanted to keep everybody on the GSM, if I'm following you.
SERWER: Yes.
O'BRIEN: All right.
SERWER: So, not a lot of happy campers there...
O'BRIEN: Got you.
SERWER: ... according to the lawyers.
Now, this is a good one -- $615 million fine paid by Boeing over a whole bunch of shenanigans. You remember this is a case that goes back a ways.
They paid this fine to avoid criminal charges, settle claims of hiring a Pentagon official improperly, a former Pentagon official, and obtaining Lockheed Martin documents improperly. They paid this huge fine.
Now, three Republican senators have sent a letter to Attorney General Alberto Gonzales. That would be Chuck Grassley, John McCain and John Warner, saying, please, don't let Boeing make this fine tax deductible. That's right, it's possible that the giant aircraft carrier...
O'BRIEN: Wow.
SERWER: ... could take this fine and deduct it. I mean, this is amazing.
COSTELLO: As a business expense?
SERWER: Yes. That's right.
A Boeing spokesperson says that clearly $50 million in the fine is not tax deductible. But as far as the other $565 million, that's unclear. And they're having tax experts look into it.
This is not good stuff here.
O'BRIEN: Is H&R Block involved?
SERWER: Yes, that would be very good.
O'BRIEN: Just curious.
SERWER: Well -- that would be a good one on their part, perhaps.
O'BRIEN: Aggressive.
SERWER: But, you know, this is a thing if you're -- if you're raising the hackles of a bunch of GOP senators here, it's probably a good thing to dial back, on Boeing's point.
O'BRIEN: You might just want to take your lumps and move on, right?
SERWER: I think so.
O'BRIEN: All right, Andy Serwer. What's next?
SERWER: Coming up next, we're going to be talking about GM and its CEO, Rick Wagoner, maybe pushing back against that Nissan-Renault Alliance. We'll talk about that.
COSTELLO: Oh, you think?
SERWER: Yes.
O'BRIEN: I used to own a Renault Alliance. Not a very good car.
SERWER: Yes.
O'BRIEN: All right. Thank you.
COSTELLO: I haven't seen one for, what, 20 years?
(CROSSTALK)
SERWER: Remember those? Yes.
COSTELLO: Renault Alliance, what's that?
O'BRIEN: I called it the appliance. Anyway...
MYERS: Remember the old Le Car?
SERWER: Oh, yes.
MYERS: Then they had the upgrade, the Le Car convertible.
COSTELLO: Oh. A death trap. MYERS: Tom and Ray, one of those guys that do the talk thing about all the cars, they said, "It's not that the French can't make good cars, it's just that they don't."
It was their joke, not mine. Just repeating it.
(WEATHER REPORT)
MYERS: The next hour of AMERICAN MORNING starts right now.
O'BRIEN: Thank you, Chad.
A terror plot uncovered. The target, New York City's tunnels and thousands of commuters. More details ahead in a CNN "Security Watch."
COSTELLO: All of England observing a moment of silence to remember dozens killed by suicide bombers in London one year ago today.
O'BRIEN: Crucial meetings under way in Asia this morning, an effort to curb tensions with North Korea. The U.S. top negotiator meeting with his Chinese counterpart on the issue.
COSTELLO: And we will hear from a Texas family struggling to understand the brutal beating of their son.
A CNN exclusive just ahead on this AMERICAN MORNING.
O'BRIEN: Good morning to you. I'm Miles O'Brien.
COSTELLO: And I'm Carol Costello, in for Soledad.
O'BRIEN: We begin with a CNN "Security Watch" on the same day that we're marking the one-year anniversary of the London terror bombing. A new terror plot in New York coming to light.
It began with a "New York Daily News" report citing the FBI saying there was a plot to bomb the Holland Tunnel. The Holland Tunnel, as you can see here, a main artery, lower Manhattan, into the financial district. The terrorists apparently wanted to flood the financial district.
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