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American Morning

Mideast Fighting Spreads; Rumsfeld In Iraq; Mumbai Blasts; Guarding U.S. Trains; Back On Track; Wildfire Emergency; Phoenix Serial Crimes; Minding Your Business

Aired July 12, 2006 - 07:00   ET

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


MILES O'BRIEN, CNN ANCHOR: Comes after Hezbollah captured two Israeli soldiers, perhaps an attempt to prompt a prisoner exchange. CNN's Paula Hancocks live now from Jerusalem with more.
Paula.

PAULA HANCOCKS, CNN CORRESPONDENT: Hello, Miles.

Well, this is the second border now that Israel is starting to carry out military operations on. We know that from the military that Hezbollah militants have kidnapped two Israeli soldiers just about five hours ago, at 9:00 a.m. local time. And we also know that four others were wounded in an attack with Hezbollah.

We know that ground forces are going into southern Lebanon. They are operating right now in southern Lebanon. This is the first time these Israeli forces have been in there since they left Lebanon in May 2000.

Now we know that these forces are bombing roads, they're bombing bridges, trying to make sure that whoever has these two Israeli soldiers will not be able to move too far. They don't want these militants to be taking soldiers deeper into Lebanon. So right now we know that there is gunfire continuing as the Israeli forces on the ground in southern Lebanon trying to find two that have been kidnapped.

Now the Israeli prime minister, Ehud Olmert, has been using some very strong words this Wednesday morning, saying that this is a sovereign state attacking Israel. It is unprovoked and there is no reason for it. Now Olmert has said that the Lebanese government is entirely responsible for this attack and also saying that they are responsible for the safety and the safe return of these two Israeli soldiers. It's a very similar statements from what we heard Olmert saying when the former Israeli soldier two weeks ago, Gilad Shalit, two and a half weeks ago was kidnapped in Gaza.

Miles.

O'BRIEN: Paula, what do we know about the circumstances of this kidnapping. In the wake of the kidnapping of Shalit in Gaza, presumably the Israeli military had their guard up and ready for this possibility.

HANCOCKS: That's right. From what we know at the moment, details from exactly what happened this morning are still fairly sketchy. But it appears as though it was fairly similar to what happened on the Gaza/Israeli border. We understand that there were rockets fired and that Hezbollah attacked some soldiers who were just on the northern Israeli border with southern Lebanon. And then, as far as we understand, this is when these two Israeli soldiers were actually taken.

Now this is something that Hezbollah has been trying to do for years just as these Palestinian militant groups have been trying to do for years. If they have an Israeli soldier in hand, then it is a bargaining chip for them. There are many Hezbollah militants who are being held prisoner in Israeli jails at the moment. And if they have two Israeli soldiers hostage, what Hezbollah is likely to ask for is a prisoner swap.

O'BRIEN: But it's unlikely there will be official negotiations.

HANCOCKS: It's very unlikely indeed. The Lebanese government and the Israeli government do not have communications in public as far as we know at this point. But it's likely there would be some mediation similar to what we're seeing down in Gaza. We have Egyptian mediators trying to bring the two sides closer together. Trying to secure the release of Gilad Shalit.

It's likely we'll see mediators in the northern Israel border as well trying to behind the scenes organize some kind of prisoner swap, if that, in fact, is what is going to happen. Publicly, Olmert has said of the previously Israeli soldier kidnapping, there will be no negotiations. Israel does not negotiate with terrorists. There will be no prisoner swap. But behind the scenes there are always back channels between Israel and its neighbors that are open for this mediation.

Miles.

O'BRIEN: Paula Hancocks in Jerusalem, thank you.

Brianna.

BRIANNA KEILAR, CNN ANCHOR: Defense Secretary Donald Rumsfeld in Baghdad this morning to meet with Iraq's prime minister. The stop in Baghdad comes after he held a town hall style meeting with hundreds of U.S. troops north of the Iraqi capital. CNN's senior international correspondent Nic Robertson is live in Baghdad.

Good morning, Nic.

NIC ROBERTSON, CNN CORRESPONDENT: Good morning, Brianna.

He also arrives here at a time of violence in Baghdad. More than 100 people killed since the weekend. More this morning. Two people killed, two wounded in a bomb in the center of Baghdad, a car bomb. And a suicide bomber around about lunch time today walked into a restaurant in the south of the city, killed seven people, wounded 20 more. Secretary Rumsfeld, while in Balad (ph) , which is a very large U.S. military base about 50 miles north of Baghdad, took questions from some 700 troops about new military equipment, about Iraqi security forces. He took questions from journalists a little earlier about when Iraqi security forces would be ready to take over. He said he didn't have an assessment of that. That would depend on the situation of things on the ground.

He's traveled now to Baghdad. Local Iraqi media saying that he's now meeting with the prime minister.

Brianna.

KEILAR: Thank you, Nic. Nic Robertson live for us from Baghdad.

President Bush is also headed overseas today. The president and first lady leave in just a couple of hours on their way to Germany. President Bush was invited to meet with Chancellor Angela Merkel in her hometown in what was once east Germany. And after his Germany stop, the president heads to St. Petersburg, Russia, for the annual G-8 economic summit.

Miles.

O'BRIEN: No one claiming responsibility for that synchronized bombing attack on the Mumbai, India, transit system yesterday. Still authorities suspect Islamic militants are to blame. Eight bombs in all, killing close to 190, injuring hundreds more on the commuter train system. We get the latest now on the line for us from there is Seth Doane from Mumbai, formerly known as Bombay.

Seth.

SETH DOANE, CNN CORRESPONDENT: Hey, Miles.

We have been going around the city today trying to get a feeling for how this city could indeed bounce back after such a horrific series of synchronized bombings last evening. And you're really seeing two very different stories. You're seeing some people still at hospitals trying to identify or find family members, some still severely wounded. We were in one ICU with a guy who was on a ventilator. The doctors were trying to save his life.

There's also another story of here at Mumbai who are trying to get life back to normal, as much as you can after some horrific event like this. Shockingly, very surprisingly, the middle of the day it was quite busy in the train stations around western Mumbai.

Miles.

O'BRIEN: And as far as the general level of tension among commuters, people get right back on the trains today, could you tell if there were decreased numbers?

DOANE: There were indeed decreased numbers and the trains were not running exactly on schedule. But in terms of your first question there, trying to get a sense for whether or not people were scared to get on the train, I was shocked. I actually did not find anyone who said they were scared to get on the train.

When I was flying into Mumbai last night, getting on the ground and talking with people here, they were saying -- amazingly resilient population of people. And even when I got here last evening, people were sending around text messages to different telephones saying, go into work tomorrow, don't take the day off. In essence, show these terrorists that they are not going to win.

Miles.

O'BRIEN: And Seth, any thoughts, any speculation, anything informed from the authorities on why Mumbai and why now?

DOANE: Nothing that I can confirm as of yet. Nothing that I can confirm. We're working on a couple of things but nothing yet.

Miles.

O'BRIEN: Seth Doane on the line for us from Mumbai, thank you.

Security tightened in the wake of those attacks. Here in New York City, police are checking subway commuters' bags this morning, extra security on train stations, bridges and in tunnels. CNN's Mary Snow live now from Manhattan's Herald's Square subway situation.

Mary, good morning.

MARY SNOW, CNN CORRESPONDENT: Good morning, Miles.

This is one of the busier stations in New York and a system that carries millions of passengers every day. Authorities say they beefed up security here out of an abundance of caution.

(BEGIN VIDEOTAPE)

SNOW, (voice over): Following the deadly explosions on commuter trains in Mumbai, India, New York officials ordered stepped up security during their rush hour. The police commissioner says there is no specific threat to New York, that they are acting out of precaution.

COMM. RAY KELLY, NEW YORK POLICE: It's an event that's part of a worldwide operation, worldwide plot, we don't know, but we're going to do what we think is prudent in this situation.

SNOW: That meant increasing measures the police department implemented since the Madrid and London bombings. For example, doubling random bag searches, deploying explosive detection units like these. Officials declined to discuss any more specifics, saying they preferred them to be unpredictable to keep possible attackers off balance. Mayor Bloomberg says an attack on any transit system in the world is a serious warning.

MAYOR MICHAEL BLOOMBERG, (R) NEW YORK: Vigilance is just the reality of the post 9/11 world.

SNOW: Security was ratcheted up at commuter lines, including New Jersey's commuter pass stations, which were specifically mentioned in a foiled plot that lead to several recent arrests overseas. Besides trains, officials said security would be tighter on ferries as well. Other cities are also being vigilant following the Mumbai attacks. In Atlanta, a spokesman for the Marta train says security was increased because of world happenings. In Los Angeles, the Metro Link redeployed some of its officers to busier stations. And in Boston, officials say they'll be thoroughly checking trains and buses and adding more police at key stations.

(END VIDEOTAPE)

SNOW: And as far as the heightened level of security here on New York City subways, the police commissioner says he makes that assessment on a day-to-day basis.

Miles.

O'BRIEN: Mary Snow in Herald's Square, thank you very much.

You can see more of Mary Snow's reporting in "The Situation Room" weekdays 4:00 and 7:00 p.m. Eastern. Be sure to stay tuned to CNN day and night for the most reliable news about your security.

Brianna.

KEILAR: A section of Chicago's subway is back on track this morning. Crews clearing the train that derailed during last night's rush hour. Investigators can now begin trying to figure out exactly what went wrong. And CNN's Keith Oppenheim is live in Chicago.

Keith, good morning.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning, Brianna.

And surface on what's known as the blue line has been partially restored, although we are expecting some disruptions during the morning rush. And take a look at this video from overnight. The commuter train that derailed in the tunnel where the incident happened was removed and you can see that the last of the cars, the eighth car, is partially charred from fire and smoke. City officials say that in the middle of rush hour yesterday the last of eight cars was burned after the train derailed. It caught fire and filled the subway tunnel with smoke. There were about 1,000 people on that train and they all got off in the tunnel and walked about 300 yards to an emergency exit. Passengers said it was sooty, it was dark, it was tough to breathe and many said they feared for their lives.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: People didn't know what happened. Some people were screaming. Some people were yelling. Some people were telling other people to be calm. Some women were saying they were going to pass out because they were feeling faint. (END VIDEO CLIP)

OPPENHEIM: There were more than 150 passengers, Brianna, that were taken to nearby hospitals. We know of at least two that are in critical condition. Fortunately, no lives lost during this incident, Brianna, but we are hoping to hear more from the National Transportation Safety Board and the mayor today to hear more about possible causes to why the train derailed.

Back to you.

KEILAR: Keith, do you get a sense that commuters there are familiar with the evacuation process? I imagine this doesn't happen very often and they might not be.

OPPENHEIM: No, there have been a few instances like this over the years, but it does sound like, although this was very scary, it was a fairly orderly exit from the train in part because the operator of the train stopped it, quickly identified the problem and probably helped get people out of there. But, in a sense, passengers, the public was on their own during the dark in the tunnel and they got out safely.

KEILAR: Thank you. Keith Oppenheim live for us from Chicago.

O'BRIEN: Some terrible wildfires raging in southern California this morning. In San Bernardino County, a state of emergency. Firefighters there working through the night. The wind fanning the flames there. More than 1,000 out of their homes this morning. CNN's Kyung Lah live in Yucca Valley with more.

Kyung.

KYUNG LAH, CNN CORRESPONDENT: Well, good morning, Miles.

In just the last hour or so, we've actually seen some of the winds pick up. It appears to us, at least from our vantage point, that this orange glow, you can see some of the plume and some of the fire there, it appears to be working its way up the hill. This is the southern edge of the fire. As we look closer at that orange glow, this is visible from around three miles or so in this area.

The fire is 30,000 acres so far, according to firefighters here. The potential to grow to 100,000 acres. A thousand people have been told to flee their homes. Residents, though, who are evacuating say it is those winds that you were talking about, Miles, that have been so frightening.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Can't even describe it. And the air turned to flame. And I couldn't go any which direction without being in flame and I thought I was going to die.

(END VIDEO CLIP) LAH: Now something to point out, too, is that this fire is one of the biggest fires since those devastating wildfires in this region in 2003.

Miles.

O'BRIEN: Kyung Lah in Yucca Valley, thank you very much.

Let's get a check of the forecast now.

Chad Myers, do they have any relief in sight there?

(WEATHER REPORT)

KEILAR: Coming up, Phoenix on edge. Simultaneous crime sprees, including a serial rapist and killer. We'll go live to Phoenix for the latest on the cases.

O'BRIEN: Also, Boston's beleaguered big dig. Leaks, arrests, cost overruns and now a death after a ceiling crashed down. Is it criminal?

KEILAR: And 22 years after being convicted of a crime he did not commit, a New York man walks free. But it's in a world he barely recognizes. His story ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Got some breaking news to track for you this morning. Coming out of Iraq right now we have very sketchy reports. Just want to tell you about it. We're tracking it, obviously. Reports from the Iraqi security forces the discovery of the bodies of 20 bus drivers who had been kidnapped earlier today. That's all we know right now. Twenty bus drivers. Their bodies discovered by Iraqi security forces. Apparently had been kidnapped some time earlier today. We'll keep you posted on that one.

Meanwhile, let me show you some new pictures coming in to CNN now from southern Lebanon. This is evidence of that Israeli push into southern Lebanon in the wake of the kidnapping of two Israeli soldiers near the border there apparently by Hezbollah fighters. Hezbollah, of course, is the terror group that is based in southern Lebanon.

And Israel's prime minister, Ehud Olmert, is calling this an act of war. So Israel now engaging on another front now. This is separate of what's going on to the south in Gaza, but with a very similar storyline. It begins with the kidnapping, in this case of two Israeli soldier. In Gaza, it was the kidnapping of one Israeli corporal. We'll keep you posted as the violence widens in the Middle East.

Brianna.

KEILAR: Fear growing in Phoenix, Arizona, today. Police now believe a recent series of deadly shootings is connected to an earlier series of attacks. Thirty-four shootings in less than a year. And, in the midst of that, police are also looking for another serial killer known as the baseline -- pardon me, a serial rapist known as the baseline rapist. CNN's Rick Sanchez live for us now in Phoenix.

Good morning, Rick.

RICK SANCHEZ, CNN CORRESPONDENT: You know what's to so difficult about this, Brianna, there's no rhyme or reason to it. I mean all these crimes that you just alluded to are essentially random. Think about living in a community where someone's going around shooting people who are just riding their bicycles or walking down the street. That's happened about 38 times and police are now saying it may be the work of just one person. And then on top of that you have the serial killer/serial rapist who may have attacked as many as 19, now 20 times according to police. I mean these are scary times for residents who live here and frustrating times for the police department.

(BEGIN VIDEOTAPE)

SANCHEZ, (voice over): It's what happened here at this car wash, and here at this back alley, and here at this bus stop that has so many Phoenix residents on edge.

UNIDENTIFIED FEMALE: It's scary. And they're right around where I work. So it's unbelievable to me. Every time I walk around the garage, I'm looking over my shoulders.

SANCHEZ: Residents in Phoenix are scared because there's a man in their midst who's both a serial killer and a rapist. Police say he's attacked 19 times since last summer. Five of his victims were murdered. Police aren't saying how many were raped.

SGT. ANDY HILL, PHOENIX POLICE: And what he's actually done is presented himself in such a way that he was nonthreatening at first, or in such a way that people just kind of hold off for a moment. They don't feel threatened at that moment.

SANCHEZ: So that's his MO, he comes up almost nonchalantly?

HILL: In most cases.

SANCHEZ: Sergeant Andy Hill has been after the so-called baseline rapist since last summer. This is what he says the rapist looks like. It's an artist rendering. The hair may be a wig, a disguise to throw off police. There's also this grainy black and white taken at one of the many crime scenes. Sergeant Hill took us to the sight of the first killing.

This was the last place he was seen.

HILL: Right.

SANCHEZ: So for all we know, he could have come up, just picked her up and said, hey, do you need a ride?

HILL: Don't know. He could have been hanging around a little bit. He might have been just talking to her. We don't know. But at some point he felt that again he had the opportunity to go ahead and abduct her, which he did.

SANCHEZ: Eight miles away, in a back alley, Sergeant Hill explains to us how a husband and wife were murdered.

Over here, he killed Mr. Chow (ph)?

HILL: Correct. This is where his body was found.

SANCHEZ: Right in that area right over there?

HILL: That's correct.

SANCHEZ: But then he took her in the car and drove away?

HILL: Right, to another location where she was found murdered in that vehicle.

SANCHEZ: And his most recent killing.

HILL: She was in the midst of her business at the car wash and however he started, we know that the suspect somehow begins to have some kind of contact. He then decided at what point he was going to do it, but he pulled a brazen attack and just rushed her and took her.

SANCHEZ: A serial rapist/killer on the loose is bad enough for one city, but it gets even worse. Phoenix is coping with two other crime sprees. Two months ago, someone started shooting people at random as they walked or rode their bicycles. Thirteen people so far, including this man, who's too scared to show his face.

UNIDENTIFIED MALE: All of a sudden I heard a loud blast and I realized I got hit with something.

SANCHEZ: Then there's another series of shootings that began more than a year ago. Twenty-five people shot, four killed. Could both shooting sprees be the work of the same person? Police now concede they may be.

COMMANDER BILL LOUIS, PHOENIX POLICE: And we are now of the opinion that this is one series that began in May of 2005.

SANCHEZ: With temperatures hovering at 115 degrees in Phoenix, the real heat is squarely on police to solve simultaneous crime sprees that may be the worst in the city's history.

(END VIDEOTAPE)

SANCHEZ: There's an update to bring to you on this night. We've been talking to police this morning and they are confirming to us now that their numbers are, in fact, changing. They are now attributing yet another murder that took place back on September 28th in Tempe, Arizona, interestingly enough, because this would be one of the first time it's outside the jurisdiction here in Phoenix, to the serial killer/serial rapist that we've been telling you about.

So, Brianna, that would bring the total number of killings to six for the serial killer. Of course that doesn't include the other shooting spree that we've been telling you about. And it brings to 20 the number of attacks for that serial killer as well. Police will be going through many of these old murders and cold cases to see if they can tie any of the others as well.

In the meantime, they'll be meeting with residents tonight. They've now called in the ATF and the FBI as well to see if they can confirm with them to help them try and break this case with so many anxious residents in Phoenix.

Brianna, back to you.

KEILAR: Those are astounding numbers, Rick. Thank you so much for that report.

And for more of Rick's report, tune in to "Anderson Cooper 360" weeknights at 10:00 Eastern.

And we'll hear what the police are doing about this crime wave when we speak directly to the Phoenix Police Department. That's at 8:15 Eastern.

Miles.

O'BRIEN: Just what the doctor ordered. Cheaper drugs north of the border may soon be a legal alternative. That's coming up.

And a pair of twins born so far apart even some doctors are still doing a doubletake. Stay with us.

(COMMERCIAL BREAK)

KEILAR: Americans may soon get the green delight to bring Canadian drugs home. The Senate passed a bill opening a loophole in the FDA's ban. It's part of the massive Homeland Security spending bill. The plan calls for border guards to stop confiscating Canadian drugs from people with doctor's prescriptions. But the measure could still be removed from the final version of the bill.

Miles.

O'BRIEN: Time for car talk. I'm click, he's clack today. How are you, Andy Serwer? Let's talk about GM. You know it just occurs to me, are we talking about GM being held by foreign ownership? I mean that's a significant statement. Or are we talking about an alliance where the ownership stays home-grown?

ANDY SERWER, CNN CORRESPONDENT: Could be all of the above.

O'BRIEN: Really?

SERWER: I think that it's not going to be the case that Nissan or Renault would ever own General Motors. Although you should never say never in this business.

O'BRIEN: I mean that would be some news there. SERWER: That would be some news.

What we have is more incremental than that, however, this morning. General Motors' CEO Rick Wagoner says he has an open mind when it comes to an alliance between his company and Nissan and Renault. He was asked on the cable network, CNBC, whether he was against such an alliance. And he said, "nothing could be farther from the truth." I think he means nothing could be further from the truth. You get his point.

O'BRIEN: Thank you for correcting his grammar.

SERWER: Yes.

And the point is, is that previously it had been suggested, although he never said so, that he was against an alliance with these two foreign companies. And he also said that he had probably no problem working with Carlos Ghosn, who is the CEO of both those other companies.

Now speaking of global auto alliances, and this one seems maybe strange at first blush but it makes sense. Nanxiang (ph) Automobile, which is one of China's oldest automakers, plans on building an assembly facility in Oklahoma to make the MG. That's right, the venerable and very cool . . .

O'BRIEN: Not GM, MG. This is the opposite of GM.

SERWER: The venerable and very cool British sports car. And there we go. I think this is one of the newer models.

O'BRIEN: It must be a newer model.

SERWER: They're planning to make, perhaps, there. An artist rendering.

O'BRIEN: That's a beautiful looking thing. Now there's a classic MG.

SERWER: There's a classic there.

KEILAR: It looks like a Bond car.

SERWER: Oh, exactly. And this company . . .

O'BRIEN: Which one is that. Michael Sterling (ph), are you there?

SERWER: I'm not sure which one that is.

O'BRIEN: Is that an MGA? What is that?

SERWER: Nanxiang brought the Rover MG last year.

O'BRIEN: He doesn't know. SERWER: 1961, as a matter of fact. There haven't been any new MGs made since 1998 and the company plans to make them in China and in Oklahoma and also in the UK, of all places. Imagine that.

O'BRIEN: Oh my gosh. I want one. I want one.

What have you got next?

SERWER: We're going to talk about whether women like men with scruffy beards and what they're doing about it if they don't. It's a big story.

O'BRIEN: And the business angle?

SERWER: It has to do with viral marketing in certain shaving company.

O'BRIEN: Ah, there you go.

KEILAR: Can't wait for that one.

SERWER: Big news.

O'BRIEN: All right. Thank you, Andy.

Coming up, Boston's big dig debacle. The tunnel project. Billions over budget. And as we saw yesterday, coming unhinged, literally, with lethal consequences. The question is, is it criminal.

And later, a New York man walks free after spending 22 years behind bars for a crime he did not commit and we are there as he orders his first Starbucks, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

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