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American Morning

New York Tunnel Bomb Plot; London Terror Anniversary; North Korea Threat Talks

Aired July 07, 2006 - 08:59   ET

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

MILES O'BRIEN, CNN ANCHOR: Good morning to you. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR: And I'm Carol Costello, in for Soledad.

O'BRIEN: We begin with a CNN "Security Watch." A plot to blow up New York commuter tunnels coming to light on the same day that we're marking the anniversary of the London terror bombings.

Armed forces on guard right now outside New York's Holland Tunnel. One man is under arrest in Beirut. "The New York Daily News" first reported that al Qaeda promised to back an attack on that specific tunnel.

CNN's Allan Chernoff live outside the Holland Tunnel with the scene there.

Allan, lots of extra security this morning, right?

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: There certainly is, Miles. Early this morning, I passed into the Holland Tunnel on the New Jersey side, and every single toll plaza there had an armed guard with automatic weapons. So, certainly, you do not normally see that level of security. But security typically is tight here at the Holland Tunnel.

Of course, keep in mind it extends from New Jersey to Manhattan, underneath the Hudson River. And as you said, Miles, CNN has confirmed from counterterrorism sources that indeed there is a plot to blow up tunnels in the New York City region.

A person has been detained in Beirut by the name of Amir Andalousli. And "The Daily News of New York" is actually reporting that the Holland Tunnel itself is the target for that bomb plot.

"The Daily News" reporting that the idea here was to actually blow up the Holland Tunnel and then hope to actually flood Lower Manhattan, the financial district. The Wall Street district is about a mile south of where I'm standing. Experts say that actually would be exceedingly difficult to accomplish, not only to actually blow up the tunnel, which is well fortified, is 93 feet deep beneath the Hudson River at its deepest location, and also re-enforced by concrete and cast iron steel, but also the idea of merely blowing up the tunnel and then trying to flood Wall Street. Well, Wall Street is above sea level. As I said, it's a good distance from here. And experts are saying that the idea of being able to actually flood Manhattan, that is highly, highly unlikely.

But again, Miles, security very tight this morning after the revelation of this plot.

O'BRIEN: Yes, I think you would be defying the laws of gravity if it actually caused a flood in Lower Manhattan.

All right. Thank you, Allan Chernoff.

Stay tuned to CNN day and night for the most reliable news about your security -- Carol.

COSTELLO: Heightened security in London this morning on the one- year anniversary of the terror bombings there. Fifty-two people died in those suicide attacks. Flowers being placed at several underground stations this morning and at the site of the bus bombing near Tavistock Square. Also, the queen among the many observing a national moment of silence.

CNN's Matthew Chance live at Kings Cross Station in London.

Hello, Matthew.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: The people of Britain mark the first anniversary of the London bomb attacks, which, as you mentioned, 52 people were killed and more than several hundred were injured. All over the nation, in fact, there have been very poignant events staged to try and remember those who lost their lives. Just two hours ago, the whole nation came to a standstill as people observed two minutes of silence to remember the dead.

It's been a very difficult day for many Londoners, of course, particularly who were -- are using this as an opportunity, or this is a making them remember some of the serious and terrible things they saw a year ago. But Londoners are very robust. It's a very tough city.

London transport says that despite the ongoing risk to their passengers, the transport system is still being used as much as it ever was by Londoners. Not letting the terrorist attacks change the way they live their lives -- Carol.

COSTELLO: You know, Matthew, there was that videotape released yesterday of one of the suspects talking about why he blew himself up.

Was there any significance to that?

CHANCE: I think there was significance in the sense that it was clearly al Qaeda making an overt attempt to try and overshadow these anniversary commemorations. It was also clearly designed to attract as much publicity as possible. Al Qaeda use these kinds of videos to attract attention to themselves, possibly even to get recruits. I think the effect of it, certainly amongst Londoners, certainly amongst the people who lost loved ones or were survivors of these attacks, was to make them feel as much hurt and as much pain as possible on the anniversary, on the eve of the anniversary is when this video was first broadcast, on the Al-Jazeera television network, as it possibly could.

COSTELLO: Matthew Chance reporting live from London this morning.

Thanks.

At least 11 people are dead, dozens more injured after a series of attacks on mosques in Iraq today. A mortar attack and a car bomb killed five people near two Sunni mosques in Baghdad. One as worshipers were leaving. Insurgent attacks on mosques elsewhere today killed at least six others.

O'BRIEN: A top U.S. diplomat working the rounds in Asia this morning, trying to restore regional calm following North Korea's missile launches. Assistant Secretary of State Christopher Hill currently en route to South Korea after meeting with Chinese officials earlier.

Two reports this morning. CNN's Sohn Jie-Ae is in Seoul, South Korea.

We begin with Jaime FlorCruz in Beijing.

(BEGIN VIDEOTAPE)

JAIME FLORCRUZ, CNN BEIJING BUREAU CHIEF: U.S. Assistant Secretary of State Christopher Hill finished a full day of talks with Chinese officials. He said China now made it clear to him that it was not in their interest to see the North Koreans launch missiles. He said that they broadly agreed that it was a provocative act and that it was harmful to relations and peace in the region. He said it's very important that they speak with a unified voice.

Secretary Hill declined to address the issue of whether the U.S. and China agree to impose economic sanctions on North Korea. But if it's any indication, President Bush had a telephone conversation with Chinese President Hu Jintao, and President Hu offered to help. However, he called for calm and restraint, and he also said that China opposes any measures that will threaten peace. That is the diplomatic way, perhaps, of saying no to economic sanctions.

Secretary Hill with proceed to Seoul, the South Korean capital, as well as Tokyo, the Japanese capital, where he will have more talks on North Korea and where he hope there will be a more unified voice on North Korea issues.

Jaime FlorCruz, CNN, Beijing.

(END VIDEOTAPE)

(BEGIN VIDEOTAPE)

SOHN JIE-AE, CNN CORRESPONDENT: I'm Sohn Jie-Ae in Seoul.

South Korea has agreed to host North Korean cabinet ministers in talks next week. North Korea is seeking further food and fertilizer aid from the south, but the south has indicated it is not ready to provide such aid until North Korea stops testing its missiles and comes back to the negotiating table. South Korea is hoping its tactics will work, but just to be on the safe side, it has ordered its commercial airlines to stay clear of the waters into which North Korea test-fired its missiles.

(END VIDEOTAPE)

O'BRIEN: Let's get a check of the forecast now. Chad Myers at the CNN Center.

Hello, Chad.

CHAD MYERS, CNN METEOROLOGIST: Can't wait to get out of the building up there, Miles, for you guys. Man, it's just a beautiful day in New York City.

(WEATHER REPORT)

MYERS: Back to you guys.

COSTELLO: Sounds good.

Thanks, Chad.

MYERS: You're welcome.

COSTELLO: North Korea will likely be a top issue today when President Bush takes questions at a news conference in Chicago.

Suzanne Malveaux already in Chicago, where President Bush will hold that conference.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Carol.

Of course, President Bush trying to mix it up here in Chicago last night with a birthday bash with Mayor Richard Daley, and then a fund-raiser for the Republican gubernatorial candidate. But this morning, in less than two hours or so, a press conference that really is part of this new public relations campaign for the president to bring his domestic and international agenda directly to the American people. He'll not only get questions from us, but from local media as well.

And topping that, of course, is going to be this North Korea crisis, how to deal with those missile launches. President Bush, over the last 24, 48 hours, has been engaged in high-level diplomatic talks with leaders involved in the six-party talks: Japan, South Korea, Russia, China.

As you know, there's a split in terms of how to get tough with North Korea. You have the United States, Japan and Britain on one end saying tough economic sanctions. Russia and China on the other end saying, no, we don't want that.

We heard from the president yesterday in an exclusive with Larry King, trying to explain the U.S. strategy, why it's important for all those leaders to speak with one voice.

(BEGIN VIDEO CLIP)

LARRY KING, HOST, "LARRY KING LIVE": Since it's always better, one would think, to talk to somebody, would you meet with Kim Jong-il?

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Oh, I think he'd love to have the United States sit down at the table alone with Kim Jong-il. The problem is, we tried that and it didn't work. I think the best way to solve this problem diplomatically is for there to be other nations around the table with us, so that when he looks out, he looks at the table, or he looks at the world, he hears -- he hears China and the United States speaking with one voice, or China and the Untied States, Russia, Japan and South Korea speaking with one voice.

I am into solving problems. And I'm convinced the strategy we've got is the best way to solve this problem.

(END VIDEO CLIP)

MALVEAUX: So, Carol, of course the president says he has a strategy. But the big question, does he have the credibility and the standing with these other world leaders to convince them that that is the path to get tough with North Korea?

He's going to get a second opportunity, another chance next week, traveling to Germany and Russia for the G8 summit. He'll sit face to face across from those leaders to try to convince them that that is the way to go -- Carol.

COSTELLO: Suzanne Malveaux -- thanks.

Of course, CNN will bring you the president's news conference live from Chicago when it happens sometime around 11:00 this morning.

O'BRIEN: Ten of, one after, give or take.

COSTELLO: Coming up, more on that apparent terror part to bomb New York City tunnels. We'll talk to one of the reporters who broke the story for "The New York Daily News."

O'BRIEN: Also, Soledad's exclusive interview with the parents of a Texas teen brutally beaten. They'll talk about the long road to recovery for their son.

COSTELLO: And later, could Ken Lay's death end up erasing his conviction? More on that story just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: A "Security Watch" we've been reporting on all morning. Counterterrorism sources now confirming to CNN there was a plot to blow up tunnels in New York City. Word of that plot first reported in this mornings "New York Daily News."

Joining us now from D.C., "Daily News" reporter James Gordon Meek. He helped break the story, which was very big in New York City, as evidenced from the front page of the "Daily News" this morning. You can see "Tunnel Bomb Plot."

How long have you been working on the story?

JAMES GORDON MEEK, "NEW YORK DAILY NEWS": Well, we don't discuss the sources and methods at the "Daily News." But we -- what I'll say is, we were in no rush to put this in the paper.

We were aware of ongoing operational activity by the U.S. government, and perhaps other foreign governments who are our allies. And so we were not rushing to get it into the newspaper or on our Web site. And, in fact, we also left out some information that we thought could impact imminent ongoing law enforcement operations -- Carol.

COSTELLO: Well, in saying that, you're probably aware of the criticisms coming out this morning. This from Representative Peter King, who is chairman of the Homeland Security Committee. Let's listen to what he had to say earlier this morning.

(BEGIN VIDEO CLIP)

REP. PETER KING (R), NEW YORK: I wish they had not gone forward at this time. You know, these are ongoing investigations. I know that the arrest in Beirut was significant, but it would have been better, it would have been preferable if this had not been announced.

(END VIDEO CLIP)

COSTELLO: And specifically what he's talking about, there was one arrest in Beirut. Supposedly, there are six or seven other guys out there across the world. They don't know where.

What is your response to Representative King?

MEEK: Well, Chairman King is somebody who I have great respect for. What I would say is that we did not rush to get this in the paper, Carol, and when we notified -- when it became obvious that people were talking about this, and we notified appropriate authorities that we were going forward with this story, I'm not aware of anybody asking us to hold it. So I would say that.

But the other thing I would also add about the plot, though, which I think is the most significant thing that...

COSTELLO: Well, before...

MEEK: Go ahead.

COSTELLO: I just want to go back to that, no one specifically. When you -- the authorities that you called, was Representative King one of them?

MEEK: I don't discuss sources and methods, Carol.

COSTELLO: OK. But nobody asked you, please, don't put that in the paper because it could mess up our investigation?

MEEK: I think people were not thrilled that we were going to report that because of ongoing operations, but I'm not aware of anybody asking us not to publish it.

COSTELLO: OK. Go on about what you were going to say about the plot.

MEEK: What I was going to say -- and I think this is very important for people to know -- two things. And one is alarming and one is not.

What is alarming that these plotters were not members of al Qaeda. They were not trained by al Qaeda. Very much like the guys arrested in Miami last week, but they were plotting mayhem, and they did succeed, according to our sources, in reaching out to associates of Abu Musab al-Zarqawi, who was the leader of al Qaeda in Iraq, a Jordanian who the U.S. forces killed a few weeks ago.

That is alarming that Zarqawi's network offered money and assistance. We don't know if they actually delivered any of it.

But what is reassuring about this is, is the engineers and geologists we consulted, and experts and city officials who we spoke to about this story, they said that while it may be possible that you could rupture the Holland Tunnel with enough explosives by causing a roof to cave in and Hudson River waters to flood in, Lower Manhattan is about 10 feet above sea level, as I understand it, and Lower Manhattan would not be flooded. That was the objective of these guys as they were plotting the mayhem, was to hit us in our economy once again and to flood Lower Manhattan.

I don't think this was a mass casualty attack they were planning. This was to affect the economy. But it looks like what they were dreaming about would be very, very difficult, if not impossible, to pull off in any shape or form.

COSTELLO: We also interviewed Senator Charles Schumer, who said that maybe this is being blown out of proportion because these weren't the smartest guys on the planet. And one of the reasons cited was what you just said.

Where are these six or seven other suspects? Where are they? And who are they? MEEK: Well, that's a good question. As I said, there was some information that we decided not to publish because we thought it might affect ongoing operations. So, for the time being, I'm just going to ask people to read the "Daily News," and what we know will either be in there or it won't.

But apparently they are overseas. I think Pat D'Amuro, the former head of the FBI New York field office, was on your show this morning. And he said they are overseas, and I believe that is correct. They are mostly scattered around the world.

So it doesn't like there was any sort of imminent threat. These guys were -- they came up with an idea in an online chat room. They're almost like a virtual terror cell, and they were plotting to cause mayhem. But whether or not they had the capability of doing that seems to be pretty doubtful, not unlike the Miami case.

COSTELLO: OK. And again what would you say? Because our viewers are e-mailing us this morning saying that "The New York Daily News" is a threat to national security because you printing this kind of stuff.

What do you say to them?

MEEK: Well, I think that New Yorkers have a right to know about plots to kill them. And so, we try to report those plots when we become aware of them, and do it in a responsible way. And again, I would emphasize, we were not rushing to get it in the paper.

We diligently worked to confirm it. And when we felt that law enforcement had the appropriate actions to take the actions they needed to, we were ready to run with the story.

COSTELLO: "New York Daily News" reporter James Gordon Meek.

Thanks for joining us this morning.

MEEK: Thank you.

COSTELLO: Stay with CNN day and night for the latest news about your security.

O'BRIEN: We'll have more on the apparent tunnel plot a little later on the program. We'll ask a former assistant director with the FBI how serious that threat is.

And later, a new wrinkle in the Enron case in the wake of Ken Lay's death. Andy tells us why some folks think his conviction could be completely wiped off the books.

Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: "Hot Topics" now. It's that time of week, the moment when we pause and wonder what is the Bill Bennett nation saying? Bill, of course, the host of the nationally syndicated morning program "Morning in America," -- what is it, "Morning in America" -- just got off the air.

Bill Bennett, good to have you with us. And...

BILL BENNETT, CNN CONTRIBUTOR: Thank you.

O'BRIEN: ... they are not talking about tunnels in New York. They are talking about Joe Lieberman and Ned, the Senate race in Connecticut.

Tell us what has got people stirred up over that.

BENNETT: Well, we did introduce the topic, Miles. We forced it a little bit in the Bill Bennett nation. I like that idea. That's very nice.

O'BRIEN: You like that? OK. We can use that.

BENNETT: No, not really. Not really.

But we did suggest it and invited -- especially invited Democrats, liberals to call into the show. We got a ton of calls. And what we found out was the following.

The really liberal Democrats really dislike Joe Lieberman. We had a very intelligent and articulate guy from Brooklyn who called in and said, "Joe Lieberman is a cancer on the party. He's a Benedict Arnold." And this mostly because of the stand on Iraq.

The more interesting...

O'BRIEN: A hawkish stand, we might -- we might point out to those who aren't following.

BENNETT: Yes. Yes.

O'BRIEN: Yes.

BENNETT: Yes, supportive of President Bush. And the big ad that Ned Lamont, who is challenging Joe Lieberman in the primary, the ad that he's running, shows Joe Lieberman morphing into George Bush.

What was more telling was we heard from a lot of Democrats who are concerned that their party is moving too far left. I'm a former Democrat, so we heard from what I call the Reagan Democrats, who are supportive of the war, that they're not sure there's any place to go in the party, that Joe Lieberman is -- you know, his stock is of diminishing value.

And they cited in this regard, fair enough, I think, you know, both Al Gore and John Kerry have said they are not -- you know, they haven't endorsed him. And he was Al Gore's running mate.

So, is there a place in the Democratic Party for a staunch supporter of the war? That -- that was the question the Democrats were asking.

O'BRIEN: Well, perhaps a sign of what he is detecting. Joe Lieberman has said he might consider a run as an Independent. That's interesting.

BENNETT: Right. Yes, it certainly is interesting. And how that would fare in Connecticut.

This got our audience to ask the question, if Lieberman can't make it in the Democratic Party, and maybe McCain is blocked in the Republican Party -- because as one person said, his last name is Feingold on campaign finance reform -- and Kennedy on the immigration bill, is there a possibility of an Independent run by McCain- Lieberman, which is a ticket that, you know, wouldn't survive either party but actually might do pretty well in the nation at large.

One caller summed it up very well. He said, "It's going to be very interesting in both parties."

O'BRIEN: Well, this brings us to the larger issue of how polarized politics is right now. And the way the primary system is set up, middle of the road people do not succeed, do not emerge from the primaries. And yet, the country, as you point out, Reagan Democrats is where the country is. In the middle.

What can be done to fix that?

BENNETT: Well, I don't know. I don't know we can fix it. If people are middle of the road, they tend not to be passionate about -- you know, you've heard that thing about "I'm a passionate moderate," you know.

O'BRIEN: Right.

BENNETT: So, the passion tends to go to the ends.

But, the question I think, actually, is whether the Democratic Party is becoming just a party of one dominant element. The Republican Party looks to me to have a lot more diverse voices right now than does the Democrat Party. And these Democrats this morning were saying they are feeling very much squeezed out because, you know, they are fairly lirbal on social issues, but they're very worried about national defense, foreign policy, and terrorism, and Israel, and they don't think their party stands -- stands for them.

O'BRIEN: So, the Republicans have more of a divergent set of voices than the Democrats? That's a bit of news right there.

BENNETT: Oh, I think -- oh, I think absolutely. Sure.

I mean, you look at McCain, and even "The Washington Post" says McCain is the guy to beat. And he's not making a lot of conservatives very happy. But people are coming around.

Then you have, you know, your Susan Collins and your Olympia Snowe, Mike DeWine. There are a lot of moderate Republicans who are succeeding. The conservatives may be angry at them on some issues, but they are -- they are succeeding.

It looks like a bigger, broader party than the party -- than the Democratic Party looks in Connecticut right now.

O'BRIEN: All right. We'll see it in the fall.

Bill Bennett and his nation.

BENNETT: We'll see. Wow.

O'BRIEN: Thank you for joining us.

BENNETT: We will see the whole nation, which is what really matters, the whole nation.

O'BRIEN: All right.

BENNETT: Thank you. Thank you.

O'BRIEN: Thanks for dropping by, as always -- Carol.

COSTELLO: Bill Bennett and his nation.

Coming up, seven men and women who made their mark this week by blasting into outer space.

And later, we'll walk the plank with Johnny Depp and "The Pirates of the Caribbean." A look at whether the sequel lives up to all the hype.

That's just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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