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CNN Live Event/Special

America's New War: Authorities Make More Arrests, Rescue Efforts Continue

Aired September 17, 2001 - 02:00   ET


MICHAEL HOLMES, CNN ANCHOR: Almost six days since the tallest symbols of the financial capital of the world collapsed, the hunt intensifies for the terrorists responsible.

COLLEEN MCEDWARDS, CNN ANCHOR: And through the night, rescue and recovery crews work in what's left of the World Trade Center, not giving up hope, not yet.

HOLMES: Meanwhile, anxious brokers around the world await the resumption of trade on the New York Stock Exchange.

Hello, I'm Michael Holmes.

MCEDWARDS: And I'm Colleen McEdwards at CNN Center. This is CNN's continuing coverage of America's New War.

HOLMES: OK. Let's first bring you up to date now on the latest developments in the investigation on Tuesday's attacks. Sources tell us here, at CNN, that two new arrest warrants have been issued for material witnesses sought in connection with the attacks. No details made public as yet. Two other people already in custody, of course, on material witness warrants.

FBI agents have searched an apartment in Delray Beach, Florida. It is believed to have been the home of one suspected hijacker on board the United Airlines' flight that crashed in Pennsylvania. Now another hijacking suspect may have lived in the same complex.

President George W. Bush will meet with his national security and economic teams on Monday morning, as leaders in the United States continue discussions on how they will respond to the attacks. Mr. Bush is encouraging Americans, meanwhile, to be resilient even as they mourn.


GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Tomorrow, when you get back to work, work hard like you always have. But we've been warned. We've been warned there are evil people in this world. We've been warned so vividly. And we'll be alert. Your government is alert. The governors and mayors are alert that evil folks still lurk out there.


HOLMES: Aides to the president say he will focus his energies in two main directions this week, planning a response and encouraging Americans to return to normal lives.

MCEDWARDS: Well, President Bush spoke with King Abdullah of Jordan, and Mexican President Vicente Fox, on Sunday. The calls to world leaders are part of his intensive efforts to muster up international support for any possible action.

U.S. leaders acknowledged that any fight against terrorism will be long and it will be complex.


DONALD RUMSFELD, DEFENSE SECRETARY: The United States needs assistance from countries with intelligence information. We need assistance from countries to deny terrorists and terrorist networks, the access to their real estate and their facilities. We need them to cooperate in a host of ways if this goal is going to be achieved.

My guess is there will be a number of different coalitions that will be functioning over time. Some will be able to do some things, others will be able to do other things. And how that will work and how that will play out, I think it's hard to say at the moment. But the one thing you can be sure is it will take a lot of time. It will take years, not days.


MCEDWARDS: A high-level Pakistani delegation is in Afghanistan carrying a message from the United States. Afghanistan's ruling Taliban has been giving support to Saudi dissident Osama bin Laden, named by U.S. officials as the prime suspect in the attacks. Named by the president, as well.

The message gives the Taliban 72 hours to hand over bin Laden. Pakistan is one of only three countries that recognizes the Taliban as the government of Afghanistan and keeps relations with it. But the Pakistan government says it will fully back international efforts against terrorism.


MALEEHA LODHI, PAKISTANI AMB. TO U.S.: We need to keep our focus where it really belongs, which is how to fight this menace to ensure, also, that there is security in the region. Where my country is situated, we are situated in a very volatile and dangerous part of the world. Obviously, we seek longer term security and peace in our region.

As I said, there is an immediate response, but we also have to look longer term to see that we have an approach that deals with some of the underlying reasons which give rise to people who hold extremist views.


MCEDWARDS: I want to take you back to New York. (UNINTELLIGIBLE) the search for survivors continues there through the night, but no one has been found alive in the wreckage of the World Trade Center since Wednesday.

New York mayor Rudy Giuliani, says the likelihood of finding survivors is fading. But rescue efforts are going to continue until all hope is gone.


MAYOR RUDOLPH GIULIANI (R), NEW YORK: The hope is still there that we might be able to save some lives. But the reality is that in the last several days, we haven't found anyone.


MCEDWARDS: Well, nearly five thousand people still missing in New York, and many survivors still facing a battle.


MANU DHINGRA: I was just getting into work about 9:45 -- I'm sorry, 8:45 -- getting out of the elevator, walking in the hallway. I was on the 83rd floor of the first tower. All of a sudden, as I'm walking in the hallway, I hear a door explode and just this big ball of fire just engulfed me. I just froze; I didn't do anything. I just stood there.


MCEDWARDS: And just to update you on the attack at the Pentagon, the identities of two of the victims there have now been confirmed. One hundred and eighty-six other people are still missing and presumed dead -- Michael.

HOLMES: Well, blocks away from the World Trade Center site, the New York Stock Exchange will resume trading in just over a little -- over seven hours from now. The Exchange, of course, closed since Tuesday.

Before the day's buying and selling begins, however, traders will hold two minutes of silence at the traditional opening time -- that's 9:30 AM. Then, the singing of God Bless America.

Well, day six of the investigation found U.S. authorities very busy in a number of locations. In San Diego, FBI agents have interviewed the operator of a flying club where at least one of the suspected hijackers may have sought pilot training. The club turned Khalid Al-Midhar and another man away because they couldn't speak English well enough to understand the lessons.

Investigators say Al-Midhar was on board the plane that crashed into the Pentagon. They've also linked him to the bombing of the USS Cole. With more now on the investigation, let's go to CNN's Mike Boettcher.


MIKE BOETTCHER, CNN CORRESPONDENT (voice-over): The FBI was back at this apartment house in South Florida, taking away evidence. It's believed to be the residence of Saeed Alghamdi, one of the suspected hijackers on United flight 93. At least one other hijacker on the same flight may have lived in the same building.

All over the country, leads are being pursued. Two more arrests for material witnesses were issued. Two people are already in custody. And in New Jersey -- just across the river from New York -- another apartment was searched. This one was the residence of one -- possibly both men -- picked up off an Amtrak train allegedly carrying cash, airline tickets and box cutters.

But the top of the most wanted list has not changed, and will not, according to U.S. officials. But the effort to add suspect names after Osama bin Laden is accelerating both in the U.S. and internationally.

UNIDENTIFIED MALE: He headed it up and organized it, but it's a very broad, kind of a loose coalition of groupings. It includes not only his forces, but it also includes, for example, Islamic Jihad from Egypt.

BOETTCHER: Members of Egyptian Islamic Jihad fill the top ranks of bin Laden's Al Qaeda organization. Islamic Jihad's leader, Dr. Iman al-Zawahiri (ph) was at bin Laden's side during this 1998 press conference. Widely considered bin Laden's chief lieutenant, Zawahiri is also his personal doctor. Like bin Laden, he's believed to be in Afghanistan.

Bin Laden denied he was responsible in a statement released Sunday through an Arabic language satellite news channel. "As for me, I have been living in the Islamic emirate of Afghanistan and following its leaders' rules," he said. "The current leader does not allow me to exercise such operations."

RUMSFELD: He's a prime suspect, but we have to be realistic. This is not a person that's the problem. It is a whole host of people and a whole host of countries that are harboring those people.

BOETTCHER: The head U.S. officials are sure of, bin Laden. But hidden under the cloak of Al Qaeda's mastermind, a complex organization, harder to identify and just as their leader, elusive.

Mike Boettcher, CNN, Atlanta.


MCEDWARDS: And now we want to bring you more on the search and recover effort in New York City. It's a little bit after two in the morning there.

And joining us now from lower Manhattan, CNN's Gary Tuchman. Gary, one thing that has been cooperating is the weather, it's a clear night there tonight.

GARY TUCHMAN, CNN CORRESPONDENT: It's been clear every night since this disaster happened, except for one night it rained very hard for twelve hours. But the search conditions have been very good. Unfortunately, the search itself hasn't been very successful.

We are about to start a new work week, which makes us think a lot about the old work week that just passed. On Monday morning, when people woke up and drove to the World Trade Center, their biggest problem in most cases was crowded subways and crowded roadways. The same thing for Tuesday. But then, all hell broke loose. And this is what we have right now as this new work week starts.

The World Trade Center complex is gone, and instead, we have a flaming, smoky cauldron, which has become a temporary graveyard for up to 5,000 people right now. It is a very sad situation. The search continues, but no one has been found alive since early Wednesday morning. But they are still trying to find survivors.

I want to show you pictures from above the scene. We haven't been able to show you such pictures because the airspace above the scene has been closed. We now have this video which shows you the void where the World Trade Center complex used to stand. You see the buildings surrounding it. Many of those buildings are damaged; others could eventually be condemned.

Now earlier today, we talked with a policeman from the Port Authority of New York and New Jersey. This policeman was inside the North Tower of the World Trade Center when it collapsed. He was on the fourth floor. He was a canine officer; he lost his dog, but he survived.


DAVE LIM: Well, seeing there wasn't much -- we were covering up the civilian, Josephine Harris (ph) -- we just -- on the ground hearing it. It sounded like a rushing locomotive or an avalanche coming at us, and feeling -- it was a feeling that I was going to die. You know? That's the only thing I can think of at the time. And it went from I was going to die to, no, I'm going to live and go home and see my family.

TUCHMAN: Wow. You were trapped for how long?

LIM: We were trapped for approximately four to five hours.

TUCHMAN: What did you do during that time before you were rescued?

LIM: Well, we radioed for help -- using our walkie-talkies -- the fire department and myself. And we tried to keep each other's spirits up, trying to get through on our cell phones to our families and...

TUCHMAN: Did you make a connection?

LIM: We finally did...


LIM: ... to my -- I got through to my wife and I spoke to her. It was a personal conversation, of course. But then I told her that I would have to give the phone up to the other firemen, and it was only right that they had to call their families just in case, of course.


TUCHMAN: Up to 60 police officers are missing; up to 300 firefighters are missing. Now life will change for many people who survived this and have to go back to work -- for example -- the U.S. Secret Service.

The U.S. Secret Service New York office was in the World Trade Center. Now they've put a temporary office right across the street from where I'm standing now -- five blocks away from the World Trade Center -- in a Portuguese restaurant, Pino's (ph) restaurant. It happens to be a three and half star Portuguese restaurant here in the Tribecca neighborhood of New York. It's closed down now because this neighborhood is closed off to the public. The U.S. Secret Service has taken the restaurant over; and right now, that's where the Secret Service personnel are meeting, inside that restaurant.

One other thing I want to mention -- an extraordinary sight I saw yesterday, New York time, during the day on Sunday in the middle of the afternoon. Right in the middle of Central Park is an area called the Sheep Meadow. The Sheep Meadow's as big as about 10 football fields. It's called the Sheep Meadow because in the early days of New York City sheep used to wander around there. But now people go there to get suntans, to have picnics, to throw Frisbees around.

There are probably about 1,000, 1,100, 1,200 people in the Sheep Meadow today, when about three o'clock in the afternoon, eastern time, a fire truck came down the road next to the Sheep Meadow and the fire truck had a huge American flag on top of it. I started to hear some clapping, and then before you knew it, everybody in the Sheep Meadow was applauding loudly. Many of them giving standing ovations to the people in the fire truck. It was a sight and a sound that no one there will ever forget.

Colleen, back to you.

MCEDWARDS: Gary Tuchman, thanks so much for that. I appreciate it -- Michael.

HOLMES: OK. Efforts continue on the diplomatic front as well. On Sunday, top U.S. leaders continued their work, building a global coalition to conduct the campaign against the terrorists.


GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will continue to work with Pakistan and India. We will work with Russia. We will work with the nations that one would have thought a couple of years ago would have been impossible to work with to bring people to justice, but more than that, to win the war against terrorist activity.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: The key here to keep in mind is that what we're asking nations to do -- and which (UNINTELLIGIBLE) have clearly made a decision to do -- is we're asking nations to step up and be counted. They're going to have to decide whether they're going to be a -- stand with the United States and believe in freedom and democracy and civilization, or are they going to stand with the terrorists and the barbarians, if you will. And it's a fairly clearcut choice, and I'm delighted to see that Pakistan has, in fact, stepped up to the task.

COLIN POWELL, SECRETARY OF STATE: This is going to change the way we do business; it's going to change the way we go about our daily life here in the United States. It's going to require greater emphasis on homeland defense so we can defend ourselves against those -- who notwithstanding our best efforts overseas -- are still trying to get in to the country to hurt us. And so we should see this as a long-term campaign and do apply decisive force to it. And that force isn't just military force, it's all the elements of national power that are at our disposal.


MCEDWARDS: Well, you just heard the vice president there talking about Pakistan stepping up to the task here. Pakistan is urging Afghanistan's Taliban rulers to hand over Osama bin Laden. A delegation of senior Pakistani officials are meeting with Taliban officials in Afghanistan on Monday. And we spoke live with Pakistan's foreign minister just a short time ago. Let's listen.


ABDUL SATTAR, PAKISTANI FOREIGN MINISTER: The Pakistani delegation -- at a high level -- will be conveying to the Taliban government of Afghanistan the imperative of compliance with security council resolutions, both those that have been adopted in the past and the one that was adopted on the twelfth of September. That is (UNINTELLIGIBLE) policy, and we hope that the government of Afghanistan will act with responsibility in the terribly grave situation raised by these horrendous terrorist attacks in New York and Washington.


MCEDWARDS: And that's -- the Pakistani delegation would seem to have its work cut out for it in Kabul because, so far, Afghanistan's Taliban have steadfastly refused to surrender bin Laden. Some Pakistani officials even saying they don't expect it to happen -- Michael.

HOLMES: OK. Well, Major Garrett joining us now from Washington, where a long weekend is coming to a close. New tasks facing the Bush administration when Monday dawns.

Major, I think you heard a lot of that interview from Pakistan. How do you think it's likely to be received there?

MAJOR GARRETT, CNN CORRESPONDENT: Well, of course, so much that was said in that interview has probably already been expressed to senior Bush administration officials in private. And the administration went out of its way, as it fanned out on the Sunday talk shows, to praise Pakistan for -- as the vice president said -- "stepping up to the plate."

You know, there's public diplomacy and there's private diplomacy. And the Pakistanis have been carrying both the private and the public on channels that can be watched across the world through CNN. Pakistani government made it clear on Sunday that among the things it is looking for in the United States -- if it, in fact, joins this broadening coalition as robustly as it has promised to -- is help on removing economic sanctions imposed after Pakistan tested a nuclear device in 1998; aid for the country, generally; and U.S. intervention -- or at least increased U.S. intervention -- in Pakistan's ongoing dispute with India over Kashmir.

Now privately, the Bush administration is saying -- as far as the Kashmir dispute is concerned -- they're not really eager to jump into that. But as to the question of economic sanctions and a broader aid package for Pakistan; privately, they're not in any way suggesting that may, in fact, not occur.

But, overall, the Bush administration is only praising, publicly, Pakistan for getting involved, offering its (UNINTELLIGIBLE), sending this delegation to Afghanistan. There will be a high-level State Department delegation traveling to Pakistan in the very near future, Secretary of State Powell says, to continue working with the Pakistani government, which right now is considered among the chief new allies in this broadening coalition.

As the president said a few moments ago, there are many nations that only a year or two ago would have been inconceivable allies in any sort of global effort against terrorism. But now -- at least in the case of Pakistan -- some are coming into the fold.

HOLMES: Indeed, Major. Pakistan, of course, has a lot to lose here. They have a lot at stake domestically and with other Islamic nations that support Pakistan in many ways.

You mentioned what the White House might be prepared to do for them. In the broader sense, is the White House prepared to deal -- on a large scale -- with any number of countries they might be asking for help? Pakistan's just one. The Russians aren't happy with missile defense, but the U.S. is going to need their help. Could this be months of wheeling and dealing, in a way?

GARRETT: Months? Probably not months. I think the wheeling and dealing -- as you describe it -- and of course a diplomat might just say that's regular negotiations -- will be happening on an hour-by- hour basis. You mentioned Russia; clearly, Russia geographically crucial. It's crucial because it holds a veto vote on the U.N. Security Council through which some type of resolution might, in fact, be sought by the Bush administration, giving it global sanction to carry out a military effort against Afghanistan or others.

Russia clearly has issues of its own concern. Terrorism has been a huge problem in Moscow. Some of it -- most of it -- from Chechen rebels. Chechen rebels have been, at times, linked with Osama bin Laden. So Russia has its own agenda to pursue here. One that is now diplomatically and security-wise simpatico with the United States. So you might find an allegiance there born of the shared problem with terrorism, and that would sort of put aside other long running disputes between the two countries.

HOLMES: It's going to be interesting the days ahead.

Major Garrett, thanks very much -- Colleen.

MCEDWARDS: Michael, after the longest halt since World War I, traders will be returning later today to the New York Stock Exchange. In fact, just a short time from now. Trading is scheduled to begin in just about seven hours from now. And it is an opening session that I think it's fair to say will be watched around the world.

The traders, though, will not be alone. Lots of people returning to their jobs in lower Manhattan on Monday.

Bruce Francis has some of their stories.


BRUCE FRANCIS, CNN CORRESPONDENT (voice-over): Nick Liberattos (ph) usually serves up hundreds of breakfasts at this coffee shop just three blocks away from the NYSE. But as the traders he caters to get back to work, he and his employees will be cleaning up 20,000 dollars worth of rotting food.

NICK LIBERATOS: I don't know when I can have supplies delivered to the store, like: milk, bread, produce -- nobody can come in. So we don't know what to do and we don't know when we can open.

FRANCIS: Although much of the financial district is open to a surprising amount of foot traffic, security is tight in the immediate vicinity of the Exchange.

UNIDENTIFIED MALE: That's my Two World building pass, but here's my driver's license.

FRANCIS: The New York Stock Exchange continued its second day of testing. Several firms -- including the nation's larger broker, Merrill Lynch -- have had to relocate to buildings outside of the financial district. The NYSE says that computer and communications inside the Exchange are working fine, as are key links between members. The neighborhood's workers are hanging tight.

UNIDENTIFIED MALE: I'd be lying if I said I wasn't scared, but I'm certain that we'll get through.

UNIDENTIFIED MALE: America is strong and we'll do the best. I'm 100 percent for that. UNIDENTIFIED FEMALE: I'm confident. I'm not afraid.

FRANCIS: Wall Street's reopening will also be a major test for the city's transportation systems. Subways will be open, but key lines will be moving much more slowly.

The Holland Tunnel and major Hudson River crossing is still closed. And so are major commuter trains from New Jersey which used to stop at the World Trade Center.

Bruce Francis, CNN Financial News, New York.


MCEDWARDS: Well, European and Asian markets have been struggling along this past week without really any guidance from the New York markets because, of course, they have been closed.

Richard Quest joins us now from London with more on what is expected. Richard, this is going to be watched so closely. What are people going to be looking for?

RICHARD QUEST, CNN CORRESPONDENT: They're going to be looking for direction, Colleen. Of that, there is no doubt. You're right that Europe's markets will begin opening at the top of the hour. And we'll see then if they can begin to recover from the very large losses that they saw on Friday when the main indices in London, Paris and Frankfurt all fell by between three and six percent.

Investors are especially curious to see what will happen when New York opens. The Exchange's chairman says it's important to get it running to send a message.


RICHARD GRASSO, CHAIRMAN, NEW YORK STOCK EXCHANGE: We are ready to go 9:30 tomorrow morning, and the best way of communicating to these criminals that they've been unsuccessful is for us to ring that bell and be back in business. And we intend to do that.


QUEST: Now, let's check in what happened to the Asian market. Once again, it's a simple case of without any New York trading, which way was the market supposed to move? So looking at the numbers, there have been sharp losses overnight in all the major Asian markets.

Tokyo's benchmark index, Nikkei, down about five percent on the session. In Hong Kong, the Hang Seng is down three percent. In Singapore, (UNINTELLIGIBLE) was off 5.1 percent. They had all been worried about what they now believe is the weakness, in large parts, of corporate America.

The problem is that the effects of what happened on Tuesday will be felt wide and far. For instance, we already know that the airline industry -- many airlines are saying that they're in deep financial problems. Others claim that there could be bankruptcies. There will be profit warnings from a variety of other corporations. Insurance companies say they are going to have serious losses. And, of course, there will be severe slowdowns as a result of 4,000 planes per day, many of whom have not been flying. The losses to the airline industry: around 250 million dollars a day.

As business prepares to resume at the New York market, part of downtown Manhattan has reopened for the first time since Tuesday's attack. As Chris Huntington reports, New York's financial district seems determined to get back to business as usual.


CHRIS HUNTINGTON, CNN CORRESPONDENT (voice-over): As utility workers laid the groundwork for restoring power, the New York Stock Exchange unfurled its message to the world: Wall Street will be back in business Monday morning.

The debris of terror still covers the financial district, but there is unanimous determination to shake it off.

UNIDENTIFIED MALE: On Monday we're going to try to open and we're going to start cleaning.

UNIDENTIFIED FEMALE: Hopefully, back to normal, (UNINTELLIGIBLE) we get deliveries -- coffee in the morning, donuts, danish.

UNIDENTIFIED MALE: We're just trying to clean up first. Put everything together, trying to wake up from this nightmare. And I think we'll get back to even better than what we used to be.

HUNTINGTON: The Federal Reserve Bank of New York set a defiant and patriotic tone on Saturday, blaring marching music from a corner of its stone fortress.

Businesses in the financial district are now in a war zone. There are security checkpoints throughout the area. And many streets remain off limits.


HUNTINGTON: OK. Do you know how long that's going to be?

UNIDENTIFIED MALE: Buildings are all unsafe. And the buildings on (UNINTELLIGIBLE) Street are unsafe.

HUNTINGTON: As of late today, a huge area of the financial district is so damaged that hundreds of businesses will be shut out of their offices indefinitely, including: American Express, Merrill Lynch and Lehman Brothers in the World Financial Center.

The partners of Aetna Judicial Services were lucky. They managed to retrieve their files just before authorities put their building off limits.

JOEL GOLUB: So business is basically in what -- the five, six bags that we -- thanks to my partner -- we were able to grab out of the office. We're up and running better than probably most businesses today.

HUNTINGTON: The priority tonight on Wall Street is to restore power and communications. More than 9,300 customers are still without electricity in the area. And the regional phone company, Verizon, reports that it is still working on the connection between the New York Stock Exchange and its member firms.

Chris Huntington, CNN Financial News, New York.


QUEST: So stock exchanges in New York reopen. Europe and the rest of the world get some financial direction. I'm joined by Bill Hahn, the International Managing Director of ACI, the financial market's association.

We have to start with, obviously, the question: New York opens, what happens?

BILL HAHN, INTERNATIONAL MANAGING DIRECTOR, ACI: Well, I think it's going to be more of a symbolic opening than an actual opening today. I think volumes are likely to be less than some analysts are forecasting. This isn't the climate, I think, for mature, sensible investors to rush into investment decisions. There are just too many uncertainties. And I think there's going to be a wait and see attitude on behalf of many of the firm managers.

QUEST: (UNINTELLIGIBLE) your choice in terms of the extent of the downside, anything from 250 to 450 points. Perhaps what we see at the open is not as important -- other than in confidence terms -- than what we see as a trend moving forward.

HAHN: I think that's correct. I mean, my own personal view is that we're likely to see between 300 to 400 points fall at the opening. And it will probably close a lot better than that. I think you've got to keep in mind that a lot of companies are still in the process of moving to disaster recovery sites, so they're not going to have the full staff in place to be able to cope with large fallings today.

QUEST: Large numbers of U.S. corporations have said they're going to buy back shares. Why are they doing it? Is this sending a message? Is this a confidence building exercise?

HAHN: Well, I guess to a certain extent it is. Most -- a lot of companies -- did have share purchase plans that they could activate if prices fall dramatically. I guess this is a good opportunity for them to buy back shares at a good level.

QUEST: All right. Warren Buffet, the sage of Omaha says he won't be selling. And if prices are particular cheap, he'll be a buyer.

HAHN: I mean, I think before the disastrous effects of last week a lot of investors -- professional investors -- were feeling that the market had reached an attractive level. I mean, they're buying not for what's going to happen for the next two to three weeks, but for the longer term.

QUEST: With that in mind -- all right, you're a small investor with a portfolio -- the last thing perhaps you want to do into this market is sell into it.

HAHN: I would agree. I think there are probably too many uncertainties at the moment. Nobody knows how this situation is going to pan out over the coming weeks. And I think probably today is not a good day to make longer term investment decisions.

QUEST: OK. Finally, confidence and mood -- you've got your finger on the financial post. What's the confidence and mood?

HAHN: Well, obviously, you know we represent 19,000 plus individual members of our association around the world in over 80 countries. We're obviously very concerned about them. The mood is extremely cautious.

QUEST: (UNINTELLIGIBLE) indeed. We wish you luck, my friend, in the day ahead.

Now back to Michael in Atlanta.

MCEDWARDS: All right. Thanks very much, Richard.

So the new week's going to see the New York Stock Exchange ending its hiatus, but it's going to see more than that. Without sounding trite, I know that a lot of people are anxious to try to feel like they're getting their lives back to normal.

HOLMES: Exactly. That's right. It's going to mean also, the resumption of an American tradition. For the first time since the attacks, major league baseball will be resuming its season. Six games are scheduled for Monday -- a welcome diversion, no doubt, for a lot of people.

A lot of people don't realize it was the second -- I think it was the longest break in baseball since World War I.

MCEDWARDS: Yeah, that's right.

HOLMES: Which shows, that of course, nobody was interested in flying or watching, either.

MCEDWARDS: That's right. You've got security increased, as Michael was saying. U.S. flags prominent on team uniforms, I'm sure.

Now the entertainment world also planning to lend a hand here. Pop star, Michael Jackson -- who returned to the spotlight just 10 days ago at a concert in New York -- is organizing an effort to produce a song called, "What More Can I Give?" The record will include: Jackson, Britney Spears, members of Destiny's Child and the Backstreet Boys as well. Well, Jackson says that he hopes to raise 50 million dollars to survivors and families of the victims of the attacks.

HOLMES: He's done it before, hasn't he?

MCEDWARDS: Yeah, he sure has.

HOLMES: That's right. OK.

All right, taking time now to recap our top stories for you. A high-level Pakistani delegation has arrived in Afghanistan carrying a message from the United States. It's telling the Taliban government is has 72 hours to turn over the suspected terrorist, Osama bin Laden. Bin Laden, of course, denying any involvement in the attacks, as recently as in the last 24 hours.

MCEDWARDS: That's right. Issuing a statement now.

The FBI has searched apartments in New Jersey and Florida. They say they're tied to either suspected hijackers or accomplices in last week's attacks. Authorities have also issued two new arrest warrants for material witnesses. Two other witnesses are already in custody.

HOLMES: And, of course, search crews continuing to work at the site of the World Trade Center's twin towers. Although no one has been found alive since Wednesday, Mayor Rudolph Giuliani says workers will continue looking for survivors until all hope is gone. The latest number of people still missing is just short of 5,000.

MCEDWARDS: And as a shaken nation continued mourning the death of the victims this weekend, President Bush urging Americans to return to work Monday. Getting back to normal, as we were talking about earlier. As much as anyone can call this situation normal. His aides say the president's focus this week is going to be on trying to return the country to that sense of normalcy and continuing a plan -- continuing to plan, rather -- some kind of a response to this attack.

Well, U.S. military leaders say that America's New War -- what they're calling a new war -- is going to be unlike anything seen before. And joining us now from the Pentagon is Mark Potter with the very latest from there.

Mark, what can you tell us?

MARK POTTER, CNN CORRESPONDENT: Well, good morning, Colleen.

The U.S. officials say that the new war on terrorism will not be a conventional war, and it will not be conducted over days or weeks. It will take years. Defense Secretary Donald Rumsfeld says the fight against the hidden terrorism networks will involve the full wake of the U.S. government in collaboration with other governments. The effort, he says, will be political, diplomatic, economic, financial and military, with an emphasis on intelligence gathering and unconventional military tactics. This will also not be an antiseptic war, he says, where Americans can stay out of harms way.


RUMSFELD: It is not a war of cruise missiles. It's not a war where the enemy has Army's, Navy's, Air Force's, capital's, high-value targets. It is a war against terrorism that strikes directly at the American way of life. And it is a war that will have to consider the numbers of countries that are currently harboring and housing and facilitating, financing, tolerating terrorists in their countries.

So I think that thinking of it as a Tomahawk cruise missile conflict that will be displayed on television every night would be a fundamental misunderstanding of the kind of war we're dealing with.


POTTER: Now at the Pentagon this morning, as you can see here, workers still trying to shore up the building and remove the debris from last week's attack. The estimated death toll stands at 188. The estimated cost of repairing the building, hundreds of millions of dollars, and it could take years.

Now 32 military reserve mortuary specialists have flown in from Travis Air Force Base in California to help identify the victims. The president has called 35,000 reservists to help defend the country and to help with the recovery efforts.

Secretary of State, Colin Powell, says U.S. citizens must understand the attacks in Washington and New York have changed everything.


POWELL: This is going to change the way we do business; it's going to change the way we go about our daily life here in the United States. It's going to require a greater emphasis on homeland defense, so we can defend ourselves against those who notwithstanding our best efforts overseas are still trying to get into the country to hurt us.

And so we should this as a long-term campaign and do apply decisive force to it. And that force isn't just military force, it's all the elements of national power that are at disposal.


POTTER: Pentagon officials will not discuss their specific plans, but the general tone is clear. This will be a long, drawn out conflict, fought in unconventional ways -- Michael.

HOLMES: All right, Mark, thanks very much. Mark Potter there.

Well, the battle against terrorism may lead to significant changes in the rules for U.S. intelligence agencies. David Ensor reports now on the possible role of the CIA.


BUSH: We're at war. DAVID ENSOR, CNN CORRESPONDENT (voice-over): The talk is of war, retaliation for the attacks Tuesday. But the secretary of state said for now, at least, a war using different kinds of weapons.

POWELL: It's more than an intelligence war. We've got a great intelligence community.

ENSOR: But the Bush administration wants the CIA and other intelligence agencies to have sharper weapons for the fight. It is even considering whether to abandon the 1976 ban on political assassinations.

POWELL: It's still on the books, and as part of our campaign plan we're examining everything.

ENSOR: Years ago, the CIA did try to kill Cuba's Fidel Castro, unsuccessfully. Critics of lifting the ban say it would hurt America's image and could lead to greater danger. Foreign governments might try to kill U.S. leaders.

But since the carnage of Tuesday, a number of experts who supported the ban on assassination say they are reconsidering.

JAMES WOOLSEY, FORMER CIA DIRECTOR: There could well be use, for example, of weapons of mass destruction against us of some kind. And there's chemical, even and bacteriological. And I think when one is fighting against a threat of that sort, you have to not just take some of the gloves off. You may have to take all of the gloves off.

ENSOR: Another change in CIA rules -- and this one appears likely -- in order to try to get spies on the U.S. payroll who are close to bin Laden, administration officials say they will scrap 1995 rules that any informant first be vetted for his criminal and human rights record.

UNIDENTIFIED PARTICIPANT: What you need to have on the payroll is some very unsavory characters if, in fact, you're going to be able to learn all that needs to be learned in order to forest all of these kinds of activities.

ENSOR: The rules were put in after the husband of an American, Jennifer Harbury, was murdered, allegedly by a paid CIA informant in Guatemala's military. Even some key democrats now favor scrapping them.

SEN. JOHN KERRY, (D) MASSACHUSETTS: What I'm saying, when you're trying the devil, you don't go to heaven for your witnesses.

ENSOR: CIA officials say that's all well and good. But penetrating a bin Laden terrorist cell will still remain the hardest thing that a spy agency could do.

David Ensor, CNN, Washington.

(END VIDEO CLIP) MCEDWARDS: Well, Iraq is calling on the United States to reconsider its international policy in the wake of these attacks. The Iraqi foreign minister says that U.S. policies are to blame.


NAJI SABRI AHMED, IRAQI FOREIGN MINISTER: If the attackers are not Americans -- i.e. the attackers had come from abroad -- the reasons which many people think lying behind what happened are that in the policy of the United States in many areas of the world, not only in this region.

The policy of war, domination, violence, suppression, non- recognition of human rights of other nations, total disregard to the national interest of other nations, total disregard of the national -- to the national -- aspirations of other peoples in the world. The use of force by the United States in it's relations with the world, the reliance on the -- on might, on force, on power, in dealing with all nations of the world. This has created a lot of feeling of -- hard feeling -- towards the United States and the world at large if you go to the East or the West.


MCEDWARDS: And Iraq is on a U.S. State Department list of state sponsors of terrorism.

Now as we've been telling you here all evening, a high-level Pakistani delegation is in Afghanistan, actually, to speak with the ruling Taliban. And for more on Pakistan's diplomatic involvement we've actually got Mike Chinoy joining us now from Islamabad live with more on this.

Mike, what can you tell us about the status of this delegation at this point?

MIKE CHINOY, CNN CORRESPONDENT: Well, Colleen, the Pakistani delegation is in the southern Afghan city of Kandahar, meeting with senior Taliban leaders. The delegation is headed by General Mahmood, he's the chief of the ISI, Pakistan's military intelligence service.

The ISI, in recent years, has been the key link in Pakistan's connections with the Taliban. The Pakistani foreign minister told us that General Mahmood will be sharing with the Taliban leadership information that he was given in Washington last week. He happened to be in the United States at the time of the terrorist attacks. And in the days afterwards, he met with senior administration officials and was given some preliminary information that the United States had begun to gather that seemed to suggest a link to Osama bin Laden's terrorist organization.

The foreign minister says that General Mahmood will be sharing this information with the Taliban leadership and urging them to turn Osama bin Laden over to the United States. The foreign minister indicated that Pakistan has for the last year or so been raising its concerns about Osama bin Laden's terrorist actions with the Taliban. But he also said that there are many signs that the Taliban doesn't always listen to Pakistan's advice.


ABDUL SATTAR, PAKISTAN FOREIGN MINISTER: Well, Pakistan has always sought to give correct counsel. We have always emphasized -- in the past -- that it is important for Afghanistan and its people that the government should act in conformity with international law.

Of course, the assumption that Pakistan is in a position to exercise complete influence is flawed, in our opinion. We have constantly pointed out to our friends that we have diplomatic relations, but that doesn't necessarily translate into great influence.


CHINOY: The Pakistanis are clearly trying to downplay expectations, particularly given the intense international attention being focused on this mission. They are also going to be raising with the Taliban leadership the Taliban's threat to go to war with Pakistan if it lends support to any U.S. military move against Afghanistan.

All of this comes amidst rising political tension here in Pakistan. Islamic fundamentalist groups and opposition politicians have voice criticism of the government's decision to stand by the United States. On Sunday, there were demonstrations against the government's moves to ally itself with the U.S. in several cities. And the foreign minister made clear that Pakistan recognizes that its support for the U.S. could lead to a crisis at home.


SATTAR: The government of Pakistan will face a difficult situation at home. Our friends in the United States and the world know about it. We hope they will also recognize it in their expectations of Pakistan. But there should be no doubt about the determination.


CHINOY: The recognition, the reference to hoping the United States and other friends would recognize Pakistan's difficulties, seems to be part of an attempt by the Pakistan government to send a signal of what it would like in return for supporting the U.S. Clearly, this is a deeply impoverished country; its economy is in terrible shape. It has debts to the -- a huge foreign debt -- and I think all the signs are that what the government is hoping out of this is over long term and some help from the United States and other countries to turn its ailing economy around. Officials here making the point that it is partly economic depravation that drives people towards radical Islam.

One other point -- the foreign minister said that either later Monday or on Tuesday that the President General, Pervez Musharraf, will address the nation and spell out in detail the direction that he proposes to lead Pakistan now in alliance with the United States in this new battle against terrorism -- Colleen.

MCEDWARDS: All right. Michael, just in the context of this downplaying of expectations, one more question before you go about the delegation. Does anyone on this delegation really expect the Taliban to hand over bin Laden? Or is this as much a gesture of willingness, a gesture of support towards the United States that says, "Look, we're serious. We are willing to do something here."

CHINOY: Well, it's hard to tell. Clearly, all the signs in the Taliban are that they have no intention of handing Osama bin Laden over. On the other hand, there is no question that without the support of Pakistan -- and particularly, without the support of Pakistan's military intelligence wing -- the Taliban would not be in power in Pakistan. There are long-standing links. If anybody has any clout with the Taliban, it would be the head of the ISI, the military intelligence. But realistically, it seems the government here does not expect any dramatic results from this trip -- Colleen.

MCEDWARDS: All right. Mike Chinoy, in Islamabad, thanks -- Michael.

HOLMES: OK. Thanks, Colleen.

The head of the Arab League is offering his sympathy to the American people. Amre Moussa says his group -- which represents nearly all of the Arab nations -- "stands firm against international terrorism." His words there. He says, "Fighting terrorism will require the combined efforts of many different countries."


AMRE MOUSSA, HEAD, ARAB LEAGUE: Whatever is planned for the future and the resistance and against terrorism should be a collective work, not a work by one country or one group of countries, but collective work. This collective work need, by necessity, a process of immediate consultations on how each of us can operate...


HOLMES: From ordinary people to government officials and many Muslims across the globe expressing sympathy to the victims of these attacks. And their countries say they, too, are ready to fight international terrorism.


UNIDENTIFIED MALE: It was natural that I come today to repeat the condolences of President Hasni Mubarak to the American people during this difficult period. I reiterate: Egypt condemns terrorism.

EDUARD GHNAIM: I just so appreciate the strong support His Majesty has given us in these difficult times. And let me tell you that -- you know, when a friend hurts, what he needs is a friend to be beside him. And we have friends here.

SHEIKH SAAD AL-ABDULLA AL-SABAH, KUWAITI CROWN PRINCE: In my name, and in the name of the Kuwaiti people, we come to the American embassy in Kuwait to express our feelings and to deplore these attacks which happened in the United States.

SHEIKH JABER AL-HAMAD AL-SABAH, KUWAITI DEFENSE MINISTER: Kuwait does not forget those who stood by it in its hour of need, and we stand by you in this difficult time and put our hands in yours to combat such acts.


MCEDWARDS: Well, Americans living in Cuba joined international diplomats and their families at a special service yesterday, as well, to honor the victims. Cardinal Jaime Ortega told those gathered that hate and vengeance will not bring justice. And he warned that the future of humanity depends on how people act now. No senior Cuban member of government attended this service, but the government has sent out a message of condolence -- Michael.

HOLMES: The U.S. Congress has been considering a 2.5 billion dollar plan to help support the airline industry. By Sunday afternoon, air travel was back to around two thirds of its normal level. The Federal Aviation Administration says it will allow mail and cargo on commercial jets again if airlines meet the increased security provisions and if airports allow it.

But as our Kitty Pilgrim reports, the airlines in the United States are suffering badly.


KITTY PILGRIM, CNN CORRESPONDENT (voice-over): For the airline industry, the news keeps getting worse. Empty terminals for days. Losses of more than a billion dollars since the attack. Struggling to put in expensive new security measures. Now, one major facility -- Reagan National Airport, in Washington -- is staying shut down. Defense Secretary Rumsfeld saying it's too risky to reopen it because of its location. You can see on the map, less than a mile from the Pentagon and close to the White House. U.S. Air and Delta are among the main carriers that fly out of National.

RUMSFELD: The flight paths -- being right near the Pentagon, the White House, the Capitol building -- it seems to me a necessity to close National Airport for a period. And I think it was the correct decision.

PILGRIM: Airlines are trying to survive, cutting costs drastically. Continental is furloughing 12,000 workers and cutting schedules by 20 percent. Delta, not running a quarter of its nearly 2,000 flights. United, Northwest and American are cutting their flight schedule by 20 percent.

A third of most airline costs come from labor. But cost-cutting alone, won't save an industry that was expected to lose more than 2 billion dollars this year even before the incident.

MICHAEL MILLER, EDITOR-IN-CHIEF, AVIATION DAILY: Well, I think we'll be the first of several airline announcements in the first week here. There's going to be: Delta, Northwest, American, United, all following behind, because none of those carriers are going to be operating at full strength.

PILGRIM: U.S. Transportation Secretary, Norman Mineta, is planning on meeting the heads of the major U.S. airlines over the next few days. They will be discussing beefed up security measures, but also what can be done to help the industry financially.

Kitty Pilgrim, CNN Financial News, New York.


MCEDWARDS: And the New York Stock Exchange opens less than seven hours from now, but the London Stock Exchange is going to be opening right at the top of the hour. So let's go to Richard Quest again in London with more on what may be ahead for the European markets.

Richard, what are you expecting?

QUEST: Well, Colleen, if we look at the early indications from a bit of early trading and direction, both the London, the Frankfurt and the Paris market are all going to show that they're going to open up just a tad high, maybe 10, 15, up to 20 points. Clearly, everybody is waiting to see what will happen when New York opens.

In Asia, overnight, there were some very sharp falls, down by four, five and six percent across Tokyo, Hong Kong and Singapore. And, putting it bluntly, it's a wait and see. We know that New York will open down -- that seems to be the indication -- it's really a question of how far down it opens and how long that lasts.

MCEDWARDS: Richard, and to what extent has the lack of guidance from the New York markets -- because they've been closed for the past several days -- to what extent has that affected markets not just in Europe, but in Asia? I mean, we've seen some pretty rocky days.

QUEST: New York is the -- without any question -- the bedrock of the financial world. What happens there not only guides the U.S. economy, but guides the rest of the financial world. Without that guidance, everybody else has been at sea.

Now in truth be told, Europe has had a very good first attempt trading, particularly in currencies over the past week. But it's been directionless. Not only because people have been consumed by sorrow and misery at the events, but simply looking for that direction.

What everybody is going to be watching very closely is has the comments over the weekend -- the Warren Buffet comments, the Paul O'Neil comments -- have those comments managed to instill an element of confidence that will support the New York market when it does start trading?

MCEDWARDS: Richard Quest, thanks very much. I appreciate it. From London. Well, of course, the history of the financial district in lower Manhattan is really closely tied to the development of the United States. If you sort of take a walk, take a tour along there, you're really taking a tour of the early days of the country.

HOLMES: It's history. It's history. And as he's done, many times in the past week, giving us perspective on so many aspects of what's occurred, Garrick Utley joining us now on how New York became the world's busiest financial center and what the future holds.


GARRICK UTLEY, CNN CORRESPONDENT (voice-over): It began under a buttonwood tree in 1794. Then buying and selling shares in the original start-up companies of the young American Republic. Just a few steps from Wall Street, where George Washington and the new Congress were at work.

New York was already a metropolis of 33,000 people. It would not long remain the political capital, but in the narrow streets of lower Manhattan, it would grow to become the financial capital of capitalism. And out of this would arise the captains of capitalism, such as J.P. Morgan, figures of unimaginable wealth and envy, and targets of hate.

In 1920, anarchists set off a bomb on Wall Street. Thirty-three people were killed and hundreds injured.

It was the first major terrorist attack on the United States, and the scars left from the explosion on buildings here along Wall Street served as a reminder that for all of its wealth and all of its power, Wall Street is vulnerable.

Above all, vulnerable to the caprices of the marketplace itself. The crash of 1929 and the depression that followed created fears about the future of Wall Street.

But it came back and prospered and then boomed. A soaring World Trade Center, which opened in the early 1970s, symbolized Wall Street's global role and reach. The twin towers provided space for vast trading floors, but the newest technology didn't change the oldest human motivation -- that continues to drive investors and speculators -- as portrayed in the film "Wall Street."

MICHAEL DOUGLAS, ACTOR: Greed, for lack of a better word, is good.

UTLEY: Today, though, greed -- or simply making money -- doesn't need trading floors like the New York Stock Exchange. Nasdaq -- where all trading is done by computer -- needs only digital bits and bytes to create markets.

And so the human disaster over Wall Street has also raised doubts about its future. Companies large and small have been forced to move out to new office space. American Express moved some of its operations across the river to New Jersey. The question now is, whether once the rubble is cleared, will the World Trade Center rise again? And if so, will companies come back?

The financial lifeblood of New York is the financial institutions in the city. The belief -- or at least the hope now -- is rebuild it and they will come back, maybe. Maybe.

Garrick Utley, CNN, on Wall Street.


MCEDWARDS: And CNN's coverage of America's New War continues. But for now, we want to leave you with a look back at the last five days. A tribute to the people and the city of New York.

HOLMES: Yeah, that's right. And we'd also like to express our appreciation to U2 for graciously allowing us to use their song, "New York." See you later.


BONO, SINGER, U2: In New York freedom looks like/Too many choices/ In New York I found a friend/To drown out the other voices/

Voices on a cell phone/Voices from home/Voices through the hard sell/voices down a stairwell/In New York/Just got a place in New York/

In New York summers get hot/well into the hundreds/You can walk around the block/without a change of clothing/

Hot as a hair dryer in your face/Hot as a handbag and a can of mace/New York/I just got a place in New York/

New York New York/

In New York you can forget/Forget how to sit still/Tell yourself you will stay in/But it's down to Alphaville/

UNIDENTIFIED MALE: We heard the scream of the plane, then a crack, crack, crack, boom, boom, boom, and the plane just disappeared. You didn't see the plane anymore and then you saw the ball out from the other side.

BONO: New York/

New York, New York/ New York/

UNIDENTIFIED FEMALE: When the plane was making impact, it just -- it was just coming in.

UNIDENTIFIED MALE: Then the top of the thing blew up and it exploded, so I had come down. I was running for my life.

UNIDENTIFIED FEMALE: And I heard rumbling and we all started running away from it. The glass like blew out and threw me onto the sidewalk.

UNIDENTIFIED MALE: You can see that the (UNINTELLIGIBLE) collapsing, dust and debris for blocks. You couldn't see anything, it was pitch black.

UNIDENTIFIED MALE: I hope I live, I hope I live. It's coming down on me.

BONO: In New York I lost it all/to you and your vices/

MAYOR RUDOLPH GIULIANI (R), NEW YORK: I don't think we yet know the pain that we're going to feel when we find out who we've lost. But the thing that we have to focus on now is getting the city through this and surviving and being stronger for it.

BONO: I hit an iceberg in my life/You know I'm still afloat/

UNIDENTIFIED FEMALE: I've seen people so overcome and so overwhelmed that they can't not work. They want to get back out there and to help other people.

BONO: ... women and children first/

UNIDENTIFIED FEMALE: New Yorkers are just coming together and it's amazing.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This country will not relent until we have saved ourselves and others from the terrible tragedy that came upon America.

BONO: In the stillness of the evening/When the sun has had its day/I heard your voice whispering/Come away now

New New York/New/New York/

New York