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The Situation Room

Eye on Insurgents; Disney Board Wins Ovitz Severance Ruling; Reeve's New Battle; Runaway Bride's Public Service; Hugo Chavez' Remarks

Aired August 09, 2005 - 17:00   ET

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


WOLF BLITZER, CNN ANCHOR: It's 5:00 p.m. in Washington. And you're in THE SITUATION ROOM, where news and information from around the world arrive at one place simultaneously. On these screens behind me right now we're getting a live telecast coming in.
CNN Plus in Spain; ITV in Britain, NTV in Germany, CTV in China. We're following what's happening around the world.

Also coming into THE SITUATION ROOM, data feeds coming in right now.

Look at this: "New York Times," "Washington Post," CNN, TimeMagazine.com, all these feeds, lots of others, coming in, in real time.

And also happening right now, fighting Iraq's insurgency. We're getting some amazing video from a U.S. military drone, an unmanned vehicle. Our Barbara Starr live at the Pentagon with new information on the battle for Iraq.

And there's some heartbreaking news from the widow of actor Christopher Reeve, now facing a health crisis of her own. Our Mary Snow is live with details of Dana Reeve's fight against cancer.

And he's one of the heroes of 9/11, and seen as a major contender for national office. This hour, new poll numbers showing Rudy Giuliani as a White House front-runner. The former New York City mayor will be my guest in THE SITUATION ROOM.

I'm Wolf Blitzer, and you're in THE SITUATION ROOM.

We have two dramatic stories and some dramatic pictures coming out of Iraq today. CNN's Aneesh Raman is standing by live in Baghdad, but we begin with some new video of an apparent attack, an apparent attack by Iraqi insurgents. They're tracked from above and then targeted by an unmanned aerial vehicle, a so-called drone.

Let's go live to our Pentagon correspondent, Barbara Starr -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Wolf, we'll get to those pictures in just one second. But for about 30 minutes today here in the Pentagon, Defense Secretary Rumsfeld, General Myers answering a lot of very pointed questions about who is winning, the insurgents or the coalition. They pressed their case that it is the coalition that's winning.

These pictures underscore what is going on in Iraq right now. These latest pictures from news agencies showing one of the latest attacks in Haditha on August 6. An unmanned drone overhead capturing this as a group of suspected insurgents got in a car, drove through the town of Haditha, trying to evade attack, and then attacked by coalition forces after they reportedly had fired their mortars.

A bird's eye view of the insurgency and how it exists today in Iraq. And as you see them being attacked there, the real question now is, what happens now? And officials are saying they do expect to see more violence as time goes on towards those December elections.

General Myers saying today, even with the coalition on the offensive, the insurgency still retains the capacity it has, much of the same capacity to launch its violent attacks -- Wolf.

BLITZER: Barbara Starr at the Pentagon. Thank you very much.

Backed by tanks and helicopters, U.S. troops are going door to door hunting insurgents in that area of Haditha in Iraq. CNN's Aneesh Raman watching what's going on as best as he can from Baghdad.

Update our viewers, Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Yes, Wolf, a dramatic glimpse into what's happening now in northwestern Iraq. Guerilla warfare being confronted by U.S. troops there.

This video, as you say, shows tanks rolling in, soldiers going house to house, insurgents firing back, even one burnt shell of what was a tank in this house-to-house urban combat setting, Wolf. Now, these images, coupled with a deadly start to the month, some 37 American troops killed in Iraq since August 1, underscore how very much still at war these troops are in parts of Iraq -- Wolf.

BLITZER: What about the Operation Quick Strike? It's still going on in the area of Haditha. The U.S. lost lots of Marines there last week. What's the latest?

RAMAN: Well, we've had sort of sporadic reports. Initially, over the weekend -- it launched last Wednesday -- the military said a number of the insurgents had dissipated, had left the area. But they have found a car bomb factory, they found six operating car bombs.

Also, a number of buildings that were rigged to explode when Marines entered. One of them, Wolf, with 300 pounds of explosives. It was destroyed before any casualties were endured. But this, again, is urban warfare, what the troops are facing there -- Wolf.

BLITZER: Aneesh Raman in Baghdad. Thanks, Aneesh, very much.

This story just coming into CNN. A judge ruling that Walt Disney company directors did not breach their duty in the Michael Ovitz case.

Let's bring in CNN's Ali Velshi in New York. For our viewers, Ali, who are not familiar with this case, what's going on?

ALI VELSHI, CNN CORRESPONDENT: You might remind our viewers who aren't familiar with it, they might think of this as -- I'm trying to remember the words exactly, but the deranged lunatic case. I think those are the words that Michael Eisner used about his old friend Michael Ovitz, who he brought in to groom him to take over Disney more than 10 years ago, about 1995.

Ovitz kind of was rubbing people at Disney the wrong way. And after 14 months, he was removed from the job. But in that 14 months, he had earned $39 million in pay, and had $101 million in stock options.

So a bunch of shareholders sued last year to say that the Disney's board of directors had breached their responsibility to the shareholders by cutting this deal with Ovitz and they wanted the money back. Well, a judge has ruled against them and in favor of Disney.

Disney doesn't have to pay that money back. As you know, Michael Eisner is leaving the job on September 30. He's succeed by Bob Iger as the new head of Disney. And at the moment, not a big issue for Disney. But they have won this one -- Wolf.

BLITZER: All right. Thanks for updating our viewers. Ali Velshi in New York. We'll be getting back to you.

A heartbreaking story we're watching right now. Just 10 months after the death of her husband Christopher Reeve, Dana Reeve and her family are facing a terrible new struggle. She's been diagnosed with lung cancer.

CNN's Mary Snow is covering the story for us from New York and is joining us live.

Mary, this is so sad.

MARY SNOW, CNN CORRESPONDENT: It really is, Wolf. And Dana Reeve says that a tabloid was going to break the news of her diagnosis. So this is why she's coming out in public, telling her own story.

She released a statement. Not many details are known. But her case is unusual because she didn't smoke.

(BEGIN VIDEOTAPE)

SNOW (voice over): Most know Dana Reeve as a loving caregiver to late husband and actor Christopher Reeve, and a fighter for stem cell research following his paralysis. Now the 44-year-old Reeve says she wants to follow her husband's example in defying the odds. She's revealed she's undergoing treatment for lung cancer.

In a statement, she said, "I have an excellent team of physicians and we are optimistic about my prognosis." Her prognosis has not yet been revealed, but a spokesman says neither she nor her husband smoked.

Dr. Charles Powell, who treats lung cancer patients, says only about 10 percent of lung cancer parents don't smoke.

DR. CHARLES POWELL, COLUMBIA UNIV. MEDICAL CENTER: Amongst the patients who are nonsmokers who develop lung cancer, they tend to be women more than men.

SNOW: Doctors can't yet say why. They also don't know why nonsmokers develop lung cancer. They are looking into secondhand smoke, radon and asbestos exposure as possible causes.

Also unknown, the stage of Dana Reeve's cancer. After Peter Jennings announced in April that he had lung cancer, he did not undergo surgery, which doctors say is often the case in advanced stages of the disease. But they say for those in early stages, surgery is an option.

POWELL: Those survival rates are much higher, in the range of 70 to 80 percent five-year survival.

(END VIDEOTAPE)

SNOW: Now, the American Cancer Society says on average six in 10 lung cancer patients die within one year of being diagnosed -- Wolf.

BLITZER: This is very sad, as I said. But how common is lung cancer, Mary, in women?

SNOW: Well, doctors say that more men die of lung cancer than women. But of the form that is not caused by smoking, more women have that kind of lung cancer. And it's estimated about 72,000 American women die each year of lung cancer.

BLITZER: Our wishes, best wishes to Dana Reeve. Hopefully she'll make a speedy recovery.

Thanks very much, Mary Snow, for updating our viewers on that.

Time now for your chance to weigh in on our top stories of the day. We call it "The Cafferty File." Jack Cafferty is in New York with the question of the hour. Jack's standing by now live.

What is the question, Jack?

JACK CAFFERTY, CNN ANCHOR: Well, we've got a story that's a bit of an outrage here, Wolf. There's a convicted murder lying among our nation's heroes.

Army veteran Russell Wayne Wagner serving two consecutive life terms for murder when he died of a heroin overdose in prison last February. Wagner bound, gagged and stabbed an elderly couple in their Maryland home on Valentine's Day, 1994. Nice fellow.

July 7, Wagner's remains were buried at Arlington National Cemetery with full military honors. Cemetery officials say they didn't know about Wagner's background, but it wouldn't have made any difference, because according to federal law, any veteran is eligible for burial at Arlington as long as the prison sentence included the possibility of parole. Wagner would have been eligible for parole after 15 years.

The victim's son wants his remains removed from Arlington. The Army says it's not going to happen. Here's the question this hour: Should a convicted murderer be interred at Arlington National Cemetery?

The email address is CaffertyFile@CNN.com.

BLITZER: All right, Jack. We'll be getting those emails later this hour. Thanks very much.

We're looking beneath the surface here in THE SITUATION ROOM. Up next, some fascinating new pictures from inside that Russian mini- submarine while it was trapped under water.

Also coming up, is Rudy Giuliani the Republican front-runner for president in 2008? Our new poll suggests that's the case. And I'll ask Rudy Giuliani if he agrees. He's standing by to join us live.

And the singer behind the hit "Walking in Memphis" becomes a victim of violence. You may marvel at his story and the fact that he survived.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We're following a developing story here in THE SITUATION ROOM, a search for an escaped prisoner and his wife following a courthouse shooting in Kingston, Tennessee, about 30 miles west of Knoxville.

CNN's David Mattingly is joining us now live with details.

What's going on, David?

DAVID MATTINGLY, CNN CORRESPONDENT: Wolf, state inmate George Hyatte has a long and criminal record here in the state of Tennessee, a violent record as well. When he was leaving the courthouse here in Kingston this morning, he ordered his wife to open fire on the corrections officers who were escorting him back to imprisonment.

At that time, she wielded a shotgun, we're told, and killed one of the corrections officers identified as Wayne Cotton Morgan (ph). That happened in the parking lot here right behind me.

Since then, for the last seven hours, the couple has been on the run. The last -- this man has escaped from custody here in Tennessee twice before.

One time he showed up in Indiana. Another time he was caught in Florida. Everyone here focusing their efforts in Tennessee, and to the west. Who knows where he might turn up this time? But everyone telling the public to keep their eyes open and to treat this man very carefully, that he is dangerous -- Wolf.

BLITZER: All right. David Mattingly. We'll watch the story with you. Thank you very much.

We're also getting in some amazing new images of the rescue of that Russian submarine in the Pacific Ocean.

CNN's Zain Verjee joining us once again from the CNN Center with details and the pictures -- Zain.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Wolf, it was a gripping ordeal that captured worldwide attention, and we're learning now that it was even more intense than people realized.

(BEGIN VIDEOTAPE)

IAN RICHES, BRITISH NAVY COMMANDER: I can assure you, a lot of grown men cried that day to see that submarine back on the surface. I'm sorry, but the emotion is getting to me again.

VERJEE (voice over): The commander of the British team that helped rescue the trapped submarine fighting tears as he recalls what was for all an emotional and frightening mission.

RICHES: You asked me whether or not I was optimistic. I lied. I said I was. I was scared.

VERJEE: The British team brought home with them these amazing images of the rescue and their robot working to free the trapped submarine. It was a race against time. The sub's crew of seven running out of oxygen.

You can see the British vehicle cutting away the cables and the fishing net that had the submarine pinned. Finally, after six hours, the sub was able to float to the surface. Disaster averted.

(END VIDEOTAPE)

VERJEE: And Russian officials, Wolf, have opened up a criminal investigation into the incident. And they're looking into possible violations in both the planning and the execution of the submarine's mission.

BLITZER: All right. CNN's Zain Verjee reporting for us. Zain, thank you very much.

Inside a mountain in Colorado there's a secret nerve center. The mission? To defend America, starting with the skies above.

Once again, CNN's Kyra Phillips has had some exclusive access to that high-tech headquarters. She's joining us now live from inside Cheyenne Mountain Air Force Station in Colorado.

Kyra, you've done some amazing work. Tell our viewers what's going on.

KYRA PHILLIPS, CNN CORRESPONDENT: All right, Wolf. Thank you so much. Well, first of all, we want to just take...

BLITZER: Unfortunately, we've lost Kyra. Unfortunately, we've lost Kyra inside Cheyenne Mountain.

I'm sure she's fine. Just a technical glitch. We'll get Kyra back on line, and we'll tell our viewers, show our viewers what's going on.

We'll take a quick break. But up next, no love lost for the USA. Venezuela's president let's loose with a vitriolic tirade and dares the United States to invade his country.

And remember the so-called axis of evil? We're inside North Korea this hour. A CNN exclusive. Our Mike Chinoy is there.

And we'll also go inside NASA's mission control, the quiet after the storm.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

EILEEN COLLLINS, DISCOVERY COMMANDER: We saw some of the most beautiful parts of the Earth. During day, we flew over North America, Europe, Africa, Asia, Pacific Ocean, Australia.

(END VIDEO CLIP)

BLITZER: The shuttle Discovery astronauts are now talking about their successful mission and today's successful return to Earth. Now that the mission is complete, CNN's John Zarrella talked with one NASA official who was responsible for seeing the mission through.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT: It's quiet here now. That wasn't the case a few hours ago.

LEROY CAIN, ENTRY FLIGHT DIRECTOR: Well, it was certainly more active. It's quiet by nature of this room, unless you're plugged in and you have a headset on and listening to the voice loops.

ZARRELLA: This is you right here, right? This is where you sit?

CAIN: Yes. This is my console right here.

ZARRELLA: And you run the whole show?

CAIN: Right, I'm in charge.

OK, folks. Go, no go for the de-orbit burn. Fido (ph)? UNIDENTIFIED MALE: No.

CAIN: And the flight director is in charge, and is responsible, ultimately responsible for the safe and successful completion of a mission, and of the astronauts and getting the vehicle back home. The main voice loop in this room is called the flight director loop. That's my loop. And when people want to talk to me, they come and call me on that loop.

Each one of these members in this room is a leader of a smaller team responsible for their own area of expertise and systems. But we have a rule, a very strict rule in mission control, when the crew talks, everybody else shuts up.

I thought about Columbia today, but I've thought about Columbia every day, literally, since the -- since the accident.

ZARRELLA: But no more or less today, because you're focused on your...

CAIN: I couldn't -- exactly. The -- today was a day to bring the Discovery crew and vehicle home safely. And that's what we set about to do.

ZARRELLA: Tell us about that flag that's in the display case.

CAIN: We had -- after the accident, we had a wonderful lady, a member of our -- a member of our church community. She made those quilts for the mission control team. It was something that she wanted to personally do special for the team to show that she was thinking about us and the Columbia crew.

(END VIDEOTAPE)

ZARRELLA: These flowers have meaning, too. On every flight since the Challenger accident nearly 20 years ago, there have been flowers here in mission control, provided by a Texas family who has never failed to send them -- Wolf.

BLITZER: John Zarrella reporting for us. Thanks, John, very much.

I want to go back to Colorado now. Kyra Phillips once again joining us.

Kyra, you gave us a little scare when we lost you inside Cheyenne Mountain there. But thank god, you're alive and well and you can pick up your report.

PHILLIPS: Well, Wolf, as you can imagine, this is the first time that anyone has ever gone live inside of this command center. So you can just imagine the engineering issues and what our engineers have been able to accomplish behind the blast doors and the rock walls.

I mean, you can see from the live shot outside of Cheyenne Mountain it starts with that long tunnel, about nine-tenths of a mile, to get all the way into the nerve center here. And I want to bring you back now into the command center.

And I talked earlier about the United States' involvement, as well as the Canadian involvement. And that centers around an agreement that was made.

I want to talk now to Brigadier General Jim Hunter, Canadian Air Force.

Sir, before we talk about that agreement, we just came from John Zarrella at mission control. But here at NORAD, you were also monitoring everything space, especially that reentry.

BRIG. GEN. JAMES HUNTER, VICE COMMANDER, CHEYENNE MOUNTAIN OPERATION CENTER: Yes, we were. We set up certain conference calls in anticipation of the reentry, and we just keep an eye on it as it comes down. And hopefully it's always successful, the way it was today.

PHILLIPS: And, of course, you're keeping your fingers crossed nothing goes wrong. You were inside for the Columbia disaster. And that is your mission. If something goes wrong, that's when you respond, right?

HUNTER: The day of the Columbia tragedy we actually initiated a significant event conference that was the main conference and handled most of the initial response to the Columbia tragedy.

PHILLIPS: Well, sir, let's talk missile warning, missile defense, a huge part of the mission here. As we look up at this map, it's unclassified, of course, but this is how you monitor any warnings that may come about with regard to a missile threat. We talk a lot about Iran, we talk a lot about North Korea, but you've got your eyes everywhere, don't you?

HUNTER: That's correct. We -- essentially, any missile or space launch that occurs anywhere in the world, we'll see it. And it's our job then to correlate it, to assess it in the context of whether it's a threat against North America.

PHILLIPS: So Jim right now over here.

Jim, you've been monitoring all things missiles today. Tell us exactly what you were looking for. Obviously, so far, it was a good day. You didn't notice any activity.

UNIDENTIFIED MALE: That's correct. Basically, today, it was the reentry of the shuttle. And so, basically, we detected it, and I reported it, as the general said, on a worldwide conference. And basically, I passed the commander's assessment on whether or not there was an attack. Obviously there wasn't, at it was a successful reentry.

PHILLIPS: Why Canada, sir, with the United States? Why this agreement?

HUNTER: Well, it was set up in 1958 to meet what was then mainly a manned bomber threat from the Soviet Union. Both countries figured out very quickly that they needed each other to defend against such a threat. And it was to each other's advantage. It was win-win from the start.

PHILLIPS: Now, as we look at all the various monitors that are up, you're monitoring everything from possible missiles, to the International Space Station, to also every aircraft that enters airspace. When we talk about air defense to the American public, if you had to sum it up in one sentence about what you're doing here, what is it?

HUNTER: Continued vigilance and an increased situational awareness about what's going on, not only for people entering North American airspace, but also within North American airspace now as well.

PHILLIPS: General, thank you so much.

And of course we want to thank the entire command center here today. All of you.

Wolf, it was pretty amazing to be live inside U.S. Northern Command, to be live inside the command center here at NORAD. We've never had access like this before. And we've learned a lot just about what military and civilian forces are doing to protect us, not only from the outside, but here on our homeland.

BLITZER: Well, excellent work, Kyra. Good work. We really appreciate everything you've done the last two days.

Kyra Phillips, exclusive access for us from inside the granite, literally, Cheyenne Mountain in Colorado. Kyra Phillips, thanks very much.

And to our viewers, please stay tuned to CNN day and night for the most reliable news about your security.

Coming up, the national security and presidential politics. And Rudy Giuliani. I'll ask the former New York mayor about those two subjects linked to his recent past and possibly to his future.

Plus, an exclusive journey inside North Korea. We'll show you real life in real time, a nation making many Americans nervous. Our Mike Chinoy is there right now.

And it's payback time for the woman who became known as the runaway bride. We'll tell you what's going on.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Ever since September 11, 2001, Rudy Giuliani has been a leader in the defense of the homeland, and a leading prospect in the 2008 presidential race. The former New York City mayor's White House potential is being driven home by our new poll suggesting he is the GOP front-runner, at least right now.

From New York, Rudy Giuliani.

Welcome. You're in THE SITUATION ROOM. Thanks very much for joining us.

RUDY GIULIANI, FMR. NEW YORK CITY MAYOR: Nice to be with you, Wolf.

BLITZER: Let's get to that poll, CNN/"USA Today" Gallup Poll, Republicans, these are Republicans' choice for the party's nomination 2008, Giuliani with 28 percent, John McCain, 24 percent. Condoleezza Rice with 18 percent, Bill Frist with eight percent. You are the leader right now. Are you running?

GIULIANI: Not right now, I'm not, no.

BLITZER: Are you leaving the door open for that?

GIULIANI: Well, I'm not counting it out. That would make no sense. But it's way too early to really assess something like that or even to have a poll make much of a difference at point.

BLITZER: Why is it too early? Because some politicians who want to be president of the United States at this stage say it's never too early to start organizing a little campaign, a little staff. And getting fund raising going.

GIULIANI: Oh, it is too early. We start these election campaigns way too early. I'm not going to really even focus on it for another year. When you get closer in time to the event, you see what the issues are then. You see how valuable it would be if you run, and you make a decision. Now it's way, way too early.

BLITZER: Do you think --

As a political expert that you are, someone who supports abortion rights, supports gay rights, supports affirmative action can win some of these Republican primaries in some of these more conservative states?

GIULIANI: I have no idea. I don't think you know that until you have a candidate and you actually go out and run and see what the -- what the party is looking for. It depends on what the overriding issues are in 2007 and 2008. That's why you can't make a decision. There's no way to know that at this point.

BLITZER: Let's talk about a race a little bit closer, in 2006. In the last hour here in the situation room, I spoke with Jeanine Pirro, the district attorney in Westchester County in New York. She wants to run for the senate race from New York State against Senator Clinton. Listen to what she said.

JEANINE PIRRO, WESTCHESTER COUNTY D.A. (video-clip): You've got to be interested and have the interest of New Yorkers first on your agenda and not be concerned about Iowa or New Hampshire. BLITZER: Is that going to resonate, that line that the Senator Clinton is looking ahead to 2008 and she wouldn't be doing that, is that going to resonate in New York State?

GIULIANI: I think so, sure. It's a pretty -- it's a pretty often used political argument. And it works. I mean, I think there are several polls that were taken that say 60, 70 percent of the people don't want to see Hillary do that. In other words, they want her to make a commitment to serve out her six years in the United States Senate. I mean, that's an issue. I remember when I ran for reelection in 1997, I never promised that I would stay for four years. It turned out I did. But I just wasn't sure. I didn't know what the future would bring. That is an important issue.

And Jeanine is a very, very attractive candidate. I mean, she's been an excellent district attorney. She's very articulate. I think it's going to be a much closer race than people think.

BLITZER: You like her more than Ed Cox who's also seeking the Republican Party nomination?

GIULIANI: I think it's interesting that she's a candidate. We've got to wait and see how the other Republican candidates all sort themselves out. But Jeanine is very, very experienced candidate. She comes from Upstate New York originally, which is a real advantage. She comes from Upstate New York, she's well-known down state. She's got a great record as district attorney, a moderate Republican, which is what you need to be to win statewide in New York like Governor Pataki, like I am, like Mayor Bloomberg. She I think she can be an interesting candidate.

BLITZER: You haven't endorsed her yet, have you?

GIULIANI: Haven't endorsed anybody. There are still several other Republicans in the race. There may be a few more. But I have to say as a Republican, I'm excited she's willing to think about this and undertake at least the Republican part of the challenge.

BLITZER: Let's talk about terrorism, a subject very close to your heart after 9/11 and this new CNN/"USA Today" Gallup Poll we asked this question. "Has the Iraq War made the U.S. safer from terrorism?" Only 34 percent of the American public says yes, 57 percent says no. Do you understand what's going on here, the dynamics?

GIULIANI: Sure. I can understand what's going on. I think it's wrong. I think the Iraq War has made us safer. I think the fact that we are on the offense against terrorism has made us safer. And the fact is, that before September 11th, 2001, much more often be on the defense against terrorism. Terrorists would act. We would make a decision what to do. Sometimes we'd react. Sometimes we wouldn't.

Since September 11, under President Bush, we've pretty consistently been on offense. And I think it's kept us safer. It's absolutely necessary to engage them in Iraq and to do everything that we can to try to create a stable, accountable government in Iraq. That will go a long way to reducing the peril of world terrorism.

BLITZER: Are you satisfied with what you're hearing from Washington, the Department of Homeland Security, Michael Chertoff, he was here in THE SITUATION ROOM yesterday when it comes to the terror threats, potential threats after London to the New York transit system, whether the subways or the buses?

GIULIANI: I'm satisfied that everything is being done that can be done. I think not just at the national level with Mike Chertoff and the Department of Homeland Security but right here in New York. Mike Bloomberg and Ray Kelly I think have done a really good job of focusing on security in New York. This is a tremendously large city to secure. You are never going to have perfect security, you're never going to cover anything.

I was in London a half block away from the attack on the Liverpool Station last month. And you know, London is a very, very well defended city. They've got security forces that are the equal of ours. They've got a small area to sewer in Great Britain and they weren't able to do it, and you know, so no one feels they have complete control of this but I think everything is being done that can be done. We realize the risk and we realize the vulnerability in the city and country as large as this.

BLITZER: Let's hope it doesn't come over here. Rudy Giuliani, thanks for joining us in THE SITUATION ROOM.

GIULIANI: Thank you. And good luck. Good luck with this new format.

BLITZER: Thank you. As always, good to speak with you.

And we want to talk a little bit more about Rudy Giuliani right now. His popularity on the blogs here in the SITUATION ROOM as we've been pointing out, we're plugged into almost everything happening online. Our Internet reporter Jacki Schechner is checking the situation online as far as Rudy Giuliani is concerned. Jacki, what are they saying.

SCHECHNER: Maybe he'll decide to make a run after he sees what we have to say here. There is lots of support online for Giuliani at this point. We found a couple of blogs, this one wordsmithie.com with a great picture of Giuliani saying don't disappear on us. We still need you, and they would like to have him make a run for the Senate. There's other people who are looking larger. They would like him to make a run for president.

This one is actually a blog called rudyguilianiforpresidentblog.com, they are posting articles and information as it becomes available. Another thing we want to show you, we have to stress, this is not a scientific poll. You saw our poll numbers earlier 28 percent for Giuliani in those. This is patrickruffini.com, he is a conservative blogger. He polls conservative bloggers, that's what his readers are and if you take a look at the latest polls, they've got him second to George Allen at 31 percent, Wolf. They break that down by blogs, by the way, and certain blogs did have Giuliani first.

BLITZER: All right, Jacki, very interesting. Thanks very much.

Lou Dobbs is getting ready for his program at the top of the hour. Lou is standing by to tell us what he's working on. Lou?

LOU DOBBS, CNN HOST: Thank you, Wolf. On LOU DOBBS TONIGHT at 6:00 p.m. Eastern right here on CNN, weapons from Iran are killing our troops in Iraq. Defense Secretary Donald Rumsfeld today issued a warning to Iran. We'll have a special report for you. Also tonight, national outrage over the Supreme Court's ruling that allows local governments to seize your property for private development. The State of Alabama says no way. The governor of Alabama will be our guest tonight.

Also, while middle class Americans are struggling to own a home, the state government of Illinois is calling upon that state's taxpayers to pay mortgages for illegal aliens.

And I'll be talking with the first American female astronaut to walk in space, Catherine Sullivan about the Shuttle Discovery and its great success and the state of our space program. All of that and more coming up at 6:00 here on CNN. We hope you'll join us. Now back to you, Wolf.

BLITZER: Thanks very much, Lou. Before I let you go, though, Bob Riley, the governor of Alabama, he is fighting that Supreme Court ruling giving the government power to take people's property, not for government work but for private development. Talk a little bit about the backlash that's clearly been developing.

DOBBS: Well, the Kelo decision, as it's termed, the Supreme Court decision permitting private development and allowing the city governments to take private property for private development has sparked a national outrage in point of fact. It is in some cases a quiet revolt, but it is a revolt that's almost nationwide. The State of Alabama and Governor Riley have taken the first steps and going to join us tonight to talk about why this revolution is absolutely necessary to maintain property rights, which is one of the basic tenants of our democracy and to explain not only why the State of Alabama is doing the right thing but how the U.S. Supreme Court went off the rails in the opinion certainly of the governor of Alabama.

Thank you, Wolf.

BLITZER: All right, Lou, we'll be watching. Thanks for joining us here in THE SITUATION ROOM.

When we come back, savage, cruel and murderous what, Venezuela's president has to say about the United States, and that's just for starters.

The iron curtain still surrounds North Korea. We'll go inside, though. You'll go inside the secretive communist state, a CNN exclusive. Mike Chinoy standing by inside North Korea.

And a Grammy winning singer is shot in the head. We'll tell you how he survived. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: A new battle and a tense war of words being waged against Washington. Venezuela's controversial president is taking his heated anti-U.S. rhetoric close to the boiling point. Zain Verjee joining us from the CNN Center with details. What's going on, Zain?

VERJEE: Wolf, Venezuela's President Hugo Chavez has never been a friend of Washington. His latest comments will likely strain relations more.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): Promises and threats from Venezuela's president. Speaking to an international youth conference, Hugo Chavez raised the specter of a possible U.S. invasion of his country and warned "if someday they get the crazy idea of coming to invade us, we'll make them bite the dust, defending the freedom of our land."

Chavez called the United States the "most savage, cruel and murderous empire that has existed in the history of the world." Washington has strongly denied any intentional military action against Venezuela which is among the leading sources for U.S. oil imports. Chavez's comments came just one day after he suspended cooperation with the U.S. drug enforcement efforts, accusing the DEA of spying on his government. The State Department dismisses that accusation as baseless.

(END VIDEOTAPE)

VERJEE (on camera): And Wolf, U.S.-based experts say that what this really is is just the same old, same old with the rhetoric only getting worse.

BLITZER: Why is Mr. Chavez making these comments now, Zain, based on what we can tell?

VERJEE: Experts I've spoken to say the timing is really interesting here. It's coming at a time where Hugo Chavez's relationship with Cuba and Fidel Castro has strengthened. His relationship with Iran has strengthened. In just a few weeks, also, the 60th session of the UN is going to be in place in a few weeks. And interestingly, also, regional analysts note that the U.S. has or may have in its custody an alleged terrorist that Venezuela wants extradired and tried in its territory. And Chavez is pretty upset and it's been a bit of a thorn in his side he hasn't been able to get that.

BLITZER: All right. Zain Verjee reporting for us. Thank you, Zain, very much.

Run by a secretive Stalinist regime, it's often sealed off from the outside world. Our but our senior Asia correspondent Mike Chinoy is right now inside North Korea. He's the only Western journalist there and he's joining us by phone from Pyongyang. This is a CNN exclusive. Mike, how many times have you been to North Korea so far and tell us what's going on now.

MIKE CHINOY, CNN CORRESPONDENT (on phone): All right, Wolf. Well, this is my 14th trip dating back to 1989 and some things really don't change when you get on the plane to fly from Beijing, stewardesses all wear buttons with the faces of the leader Kim Il Sung or Kim Jong-Il. When they give you bottled mineral water on the plane, they say this mineral water is a special gift from the leader Kim Jong-Il. When you get to Pyongyang Airport, they take your cell phone. You're not allowed to have it even though there's no cell phone network that a foreign cell phone can operate on. So you do get a sense how tightly controlled and isolated the place is.

BLITZER: Do you get a sense right now - I know you've only been there shortly, of some significant or any changes from previous visits?

CHINOY: Well, on the surface, it looks very much the same. But what is interesting and what diplomats and aid workers that I've been speaking with are talking about is there have been some attempts at sort of market style economic reforms. And for the first time, you can now see on the streets kiosks, vendors selling food, cigarettes, bicycle repairmen.

The very early glimmerings of a little bit of private initiative and private business. One of the big questions here in North Korea with the economy in such a mess is are they going to pursue those changes and what will that do to this isolated and secretive society?

BLITZER: Our senior Asia correspondent Mike Chinoy will be reporting in the coming days exclusively from North Korea. He'll be on this program every day from North Korea. Thanks, Mike, very much.

And remember Georgia's so-called runway bride? Now she's paying the price for leading everyone on that wild goose chase. We'll show you what's going on.

Also, this incident got him suspended from baseball. Now there are new developments for Texas Rangers pitcher Kenny Rogers.

And a story you'll have to see to believe. A Grammy winning singer shot in the head. And he lives to tell us all about it. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Jennifer Wilbanks, the so-called runway bride, has begun walking to fulfill a very important order. CNN's Ali Velshi has the bottom line on what's going on. He's joining us from New York. You're smiling, Ali.

ALI VELSHI, CNN CORRESPONDENT: This is unbelievable. You've got to take a look at this. This is Jennifer Wilbanks with her community service sentence working for a city council in Georgia. You'll remember in April, she ran away for a few days. $43,000 is what it cost the municipality to look for her. She's paid back $13,000 of that. She's paid back a little restitution. And now she has to do 120 hours of community service. She's done 16 of them so far. Now she's lawn mowing. She filled another eight hours today. Had a little trouble with that electric lawn mower. Had to start it up a few times.

Still in the penalty box, take it over to baseball. Kenny Rogers, pitcher for Texas Rangers was suspended on after on June 29th he shoved two cameramen. One of them ended up in the hospital. He was suspended for 20 games, charged $50,000,000. Today an arbitrator overturned that. He's been out for 12 games. He returns to play against Boston on Wednesday. And the money he's already paid now becomes a charitable foundation. A better setup Jack than you've ever seen, Wolf? Is that outrage or what?

BLITZER: I think it's pretty good, Ali. Thanks very much. We'll see you tomorrow. Jack Cafferty pouring over your email, getting lots of them. His question of the hour. Jack's joining us with the "Cafferty File" right now.

JACK CAFFERTY, CNN CORRESPONDENT: Thank you, Wolf. Got a convicted murderer buried in Arlington National Cemetery and some people think that's wrong. Army veteran Russell Wayne Wagner serving two life terms for the murder of an elderly couple in Maryland. He died of a heroin overdose in prison last February. And his remains were buried at Arlington last month with full military honors.

Cemetery officials say it isn't all about Wagner's background but apparently it wouldn't have made any difference because if you're eligible for parole and otherwise qualified, you can be buried at Arlington. Nevertheless, the victim's son wants Wagner's remains removed from the cemetery. The question this hour is, should a convicted murderer be interred at Arlington. Jim in St. Louis, "Continue as is. Frequently good people do bad things. They doesn't change the fact they served and were honorably discharged."

Mary in Orlando, Florida, "The convicted murderer should be removed from Arlington. I served my country honorably in the Air Force for over 12 years. I'm sick from the gulf war. I should get that space, not him. It's outrageous."

Larry in Fairfield Bay, Arkansas, internment in the cemetery is earned during service to our country. What a person does during his life between service to country and death should not detract from his eligibility."

And Paul in Mt. Vernon, Ohio, says, "The thought of a convict being buried in the cemetery puts a sick feeling in the pit of my stomach. Arlington National Cemetery is a resting place for heroes, not criminals."

Jack, what do you make of Jennifer Wilbanks, the runway bride mowing the lawn a little bit?

CAFFERTY: You know, that's a good thing. Community service. You know, she's I guess trying to make restitution. You know what that was? That was a thing that probably would have gone unnoticed except the media got a hold of it and turned it into a front page story and just beat everybody to death with it for about a month. And so I suppose when she walked in the courtroom, they sort of had to slap her with something. There's worse ways to do community service. Mowing the grass ain't such a tough gig.

BLITZER: Getting some fresh air is not so bad.

Ali, what do you think.

VELSHI: Jack is so just as I am because we both had shows on that day that got blown off the air because we were pretty occupied. So in addition to the $43,000 she cost the municipality, she cost Jack and I a little bit of peace of mind that day.

BLITZER: It gets a little personal, I guess, when all is said and done. Ali, thanks very much. Jack Cafferty, thanks to you. We'll see you both again tomorrow.

When we come back, a very sad but amazing story. A Grammy award- winning musician surviving a carjacking in which he was shot in the head. We'll tell you what's so amazing about this. Our Brian Todd, he'll be joining us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: In Denver right now, a frightening tale is still unfolding. Police are holding a man suspected of shooting a Grammy award-winning singer in the head during an attempted carjacking. Amazingly, the singer survived. CNN's Brian Todd is joining us here in the SITUATION ROOM with more. Brian?

BRIAN TODD, CNN CORRESPONDENT: Wolf, Mark Cohn says it very simply. He feels lucky to be alive after a terrifying sequence of events within the past 48 hours.

(BEGIN VIDEOTAPE)

TODD (voice-over): In his 1991 hit "Walking in Memphis," Mark Cohn sings about getting a break when luck's turned against you.

Cohn may want to write a new song about Denver because he sure got a break there. Late Sunday evening, the Grammy-winning pop soul artist pressure off a performance is riding back to his hotel in a van with three members of his group. A man identified by police as Joseph Yacteen tries to commandeer the vehicle waving a gun.

SONNY JACKSON, DENVER POLICE SPOKESMAN: The driver of the van tried to avoid him and go around him. At that point in time, he actually fired into the van striking the driver, grazing his chin and also causing glass injury and striking singer Mark Cohn in the temple.

TODD: The 46-year-old Cohn has a bullet lodged in his head. He is rushed to a local medical center. The bullet is removed. He gets more treatment and is soon released from the hospital. We asked a top neurosurgeon what saved the singer's life.

DR. DANIEL BARROW, EMORY UNIVERSITY SCHOOL OF MEDICINE: If the velocity of the bullet is altered by hitting another object such as a windshield, another human being, the skull, then obviously that decreases the velocity of the projectile and diminishes the harm that it will cause to the brain itself.

TODD: Dr. Daniel Barrow also says the fact that the bullet struck Cohn's right temple, what he calls a silent area of the brain in most people, was crucial. Cohn's wife, ABC News anchor Elizabeth Vargas rushed to Denver to be by his side. Cohn is expected to make a full recovery.

(END VIDEOTAPE)

TODD (on camera): Not only that, Mark Cohn looks to resume his North American tour with Suzanne Vega. He had just a little bit more than a week left in it, Wolf.

BLITZER: What happened to the suspect based on everything we know, Brian?

TODD: Denver police tell us the suspect, Joseph Yacteen, alluded them for almost 24 hours but late Monday night, last night, they got him, they nabbed him in a vacant house in Denver after a brief standoff.

BLITZER: This is pretty amazing, the medical side of it. I know you spoke to that neurosurgeon at Emory University Medical School.

What else did he tell you about the medicine of this?

TODD: A lot of this depends on the caliber of the gun fired, the velocity of the bullet. We don't know the gun. The police are not giving us that information, but he says a .22 caliber handgun, something like that, if it strikes you, you have a more of a chance of surviving than almost any other gun. The police do say that was a handgun used in the crime, they don't say anything more than that.

BLITZER: That's pretty amazing and we want to wish him a very speedy recovery. Mark Cohn, our best wishes to him and his family, Elizabeth Vargas, a good friend. We want to wish her only the best as well. Thanks very much, Brian, for that report.

We're in the SITUATION ROOM every week day afternoon 3:00 to 6:00 p.m. Eastern. I'm Wolf Blitzer in Washington. LOU DOBBS TONIGHT starting right now. Lou standing by in New York. Lou?

DOBBS: Thank you, Wolf.

END

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